About Coca-Cola Andina
Historical Overview
Message from the Chairman of the Board of Directors
Message from the Chief Executive Officer
About this Integrated Annual Report
Highlights of the Year
Board of Directors and Executive Team
Regulatory framework
Legal information
Communicating with investors
Stock market information
Ownership and control
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100
101
102
103
105
Global Context
017
Stakeholders
018
Materiality 2021
019
Strategic Framework
023
Generated and Distributed Economic Value 2021 024
Future Commitments
025
Broad portfolio
Broad range of channels
028
033
Broad portfolio, channels and geographies
Market leadership
Value chain efficiency and productivity
Agility, flexibility and commitment
SASB table, non-alcoholic beverages
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134
138
148
155
Company Structure
110
Subsidiaries, equity investees and associates
111
Properties and facilities
117
Principal products commercialized by operation 122
Bottler agreements
125
Distribution agreements
126
Production capacity
127
Distribution
128
Principal clients and suppliers by country
128
Other operations
130
Investment and financing policy
132
Insurance
132
Sustainable value creation
Water management
Sustainable packaging
Energy management and climate protection
Commitment to our suppliers
038
039
045
052
058
10
Talent and diversity
Community outreach
061
072
Corporate Governance Model
077
Active, flexible and dynamic risk management 092
Risk factors
Financial information
GRI content index
Stakeholders
Featured cases
Glossary
Verification letter
Statement of responsibility
Acknowledgments
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We are Coca-Cola Andina
1WE ARE COCA-COLA ANDINA2345678910
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COMPANY IDENTIFICATION
GRI:102-1, 102-3, 102-4, 102-5
Embotelladora Andina S.A.
Type of company: Open Stock Corporation
Chilean Tax ID 91.144.000-8
Legal address: Av. Miraflores 9153,
Renca, Santiago
Zip code: 8660010
Registration number in the CMF Securities
Register: 00124
CONTACT INFORMATION
CORPORATE OFFICE
GRI:102-3
Av. Miraflores 9153, Piso 7,
Renca, Santiago
Telephone: (56 2) 2338 0520
Website: www.koandina.com
INVESTOR RELATIONS
GRI: 102-53
Paula Vicuña, Investor Relations Manager
andina.ir@koandina.com
Av. Miraflores 9153, Piso 7, Renca, Santiago
Telephone: (56 2) 2338 0520
SUSTAINABILITY
GRI: 102-53
Mara Agustina Rey Caro
andina.ir@koandina.com
Ruta Nacional 19, Km 3,7, Córdoba
Telephone: (54 351) 4968888
COMPANY DESCRIPTION
GRI:102-2, 102-6, 102-7
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 approximately 55.3 million people, in
which it delivered 4,703 million liters of soft
drinks, juices, bottled waters, beer and other
alcoholic beverages during 2021.
Coca-Cola Andina has the franchise to
produce and commercialize products
of The Coca-Cola Company 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 and with its strategic partner
The Coca-Cola Company, in order to
increase return for shareholders and for all
of its stakeholders.
ADDRESSES
GRI:102-4
Argentina: Ruta Nacional 19,
Km 3,7, Córdoba.
Tel: (54 351) 496 8888
Brazil: Rua André Rocha 2299,
Taquara, Jacarepaguá, Rio de Janeiro.
Tel: (55 21) 2429 1779
Chile: Av. Miraflores 9153,
Renca, Santiago.
Tel: (56 2) 2462 4286
Paraguay: Acceso Sur, Ruta
Ñemby, Km 3,5 -Barcequillo-, San
Lorenzo, Asunción.
Tel: (595 21) 959 1000
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ORGANIZATIONS THAT
EVALUATE OUR
SUSTAINABILITY PERFORMANCE
For the sixth consecutive year we have
been selected to be a part of the Dow Jones
Sustainability Chile Index (DJSI Chile)
and, for the fifth year, of the Dow Jones
Sustainability MILA Pacific Alliance Index.
Since January 2021 we are part of the S&P
IPSA ESG Tilted Index (SPCLETCP).
In 2021 we were also ratified in the
FTSE4Good.
RISK RATINGS
INDEPENDENT AUDITORS
LOCAL
Agency
ICR Sociedad
Clasificadora de
Riesgo Ltda.
Fitch Chile
Clasificadora de
Riesgo Limitada
INTERNATIONAL
Agency
Standard & Poor´s
Rating
AA+
AA+
Rating
BBB
Fitch Ratings, Inc.
BBB+
EY Servicios Profesionales de Auditoría y
Asesorías SpA
Chilean Tax ID 77.802.430-6
SUSTAINABILITY AT THE HEART
OF THE BUSINESS
IN EACH OF THE DECISIONS
WE MAKE, WE CARE
ABOUT ADDING VALUE TO
ALL OUR STAKEHOLDERS
AND REDUCING THE
ENVIRONMENTAL IMPACT.
Our commitment to sustainability is a core
component of our growth strategy.
1WE ARE COCA-COLA ANDINA2345678910
1994
ANDINA BEGINS TRADING
ON THE NEW YORK STOCK
EXCHANGE (NYSE).
Acquisition of Rio de Janeiro Refrescos
in Brazil.
1995
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 interest in Andina.
2000
Acquisition in Brazil of the Coca-Cola
bottler Niteroi, Vitoria and Governador
Valadares (NVG).
2007-08
Joint venture (50/50) with the Coca-Cola
System for the water and juice business in Brazil.
2008
Andina incorporates Benedictino to its
water portfolio.
2011
THE NEW PLANT LOCATED IN
RENCA BEGINS OPERATING
IN CHILE.
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.
2016
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 along with the
Coca-Cola System in Chile.
New agreement with Diageo for the
distribution of alcoholic beverages.
THE NEW DUQUE DE CAXIAS
PLANT BEGINS OPERATING
IN BRAZIL.
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2019
New agreement to distribute Pisco Capel
in Chile.
2020
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 US$ 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.
2021
New agreement to distribute Viña Santa
Rita products in Chile.
New agreement to distribute Estrella
Galicia beers in Brazil.
GRI: 102-2, 102-10
1946
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 begins trading on the Santiago
Stock Exchange.
1985
The controlling shareholders, Garcés Silva,
Said Handal, Said Somavía and Hurtado
Berger families, acquire control of
the Company.
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Our values sustain us, and our results
were robust thanks to every person
in our Company:
Accumulated consolidated sales
volume reached 828.3 million unit
cases, representing a 12.8% increase
over the previous year.
Accumulated consolidated net
sales reached Ch$2,216,733 million,
representing a 30.5% increase over
the previous year.
Accumulated consolidated
Adjusted EBITDA was Ch$397,213
million, an increase of 13.3%
over the previous year. Adjusted
EBITDA margin for the period
was 17.9%.
Net income attributable to owners
of the controller was Ch$154,698
million, an increase of 26.8%
compared to the previous year.
At Coca-Cola Andina, while adopting
good historical practices, we creatively
designed continuity, prioritizing care for
the environment, the relationship with our
community, maintaining supply for our
customers, safeguarding profitability in our
business, and progressing in our strategic
objectives. This was due in large part to the
extraordinary efforts of each individual. I
would like to express my sincere thanks to
everyone, as we have continued to work every
day in our plants and with our customers.
For many, thinking in the long term was
useless, as we did not know how we would
overcome the pandemic. Imagining the
future was and is unsettling. In 2021, the
foundations were laid for a new environment
that reveals a fragile, non-linear and
incomprehensible world. Environments will
come and go, but we will be the ones who will
still be here, who will remain firm and clear in
our mission, but at the same time flexible and
innovative to face the challenges.
GRI: 102-14
THIS YEAR WE CELEBRATE
75 YEARS AND WE
CELEBRATE IT WITH PRIDE
FOR ALL THAT WE HAVE
ACHIEVED TOGETHER WITH
OUR PARTNER
THE COCA-COLA COMPANY,
WHILE MAKING A
COMMITMENT TO DO
EVEN BETTER IN THE
COMING YEARS. OUR SPIRIT
REPRESENTS THIS JOURNEY
WITH IMMENSE INITIAL
DREAMS AND STEADFAST
GOALS.
We have faced all kinds of circumstances,
and, in recent years, the challenges have
been continuous. We have responded by
focusing on excellence in everything we
develop and anticipating adverse scenarios
as much as possible. In the last decade, we
consolidated our position as one of the
largest bottling companies in the region and
we are currently pursuing the clear objective
of consolidating our position as a total
beverage Company.
We evolved through closeness, prioritizing
our customers and our entire value chain. We
have also learned that the antidote to fragility
is resilience and that quality information
helps to reduce uncertainty, generating
trust and transparency. The experience and
satisfaction of our customers and consumers
are non-negotiable and inalienable values,
for which we must approach each initiative
by placing the customer and consumer at the
very center and by incorporating them into
a co-creation model, involving them in the
relevant instances.
Internally, we achieved a good climate that
made it possible to compensate for the
impacts of the unexpected, unforeseeable
contingencies, and we sharpened our instinct
and ability to understand each situation in
order to lead it. For our teams, turbulence
meant an opportunity to innovate, to keep
our objectives in mind, but, above all, to
design and work on the different paths we
could take to achieve them, and to even
enjoy the process. We were able to adapt
to the changing scenario we have observed
over the last two years, confirming our solid
position in the market.
1WE ARE COCA-COLA ANDINA2345678910
2021 was a year in which we rediscovered the
potential of our strength and resilience and,
with that momentum, we continued with our
goal of becoming a Total Beverage Company.
Proof of this were some milestones
that validate the success of this period,
adding new categories to our
business platform:
The new agreement to expand
the business and carry out the
distribution of Viña Santa Rita's
main brands in Chile, including
Casa Real, Medalla Real, Carmen
and 120, among others. In 2020,
the volumes of these products
in the territories where they will
be commercialized by Coca-Cola
Andina reached approximately
6.3 million unit cases and sales
reached approximately Ch$39,000
million.
The distribution agreement with
the Estrella Galicia brewery for
the distribution of its products
in Brazil. This agreement is part
of our long-term strategy to
complement our premium beer
portfolio in Brazil.
The acquisition of the Brazilian
craft beer brand Therezópolis.
This transaction is also part of our
long-term strategy to complement
our beer portfolio in Brazil.
This year, more than ever, we have seen the
benefits of our Company's culture, one that
values the care we show for one another while
embracing agility, change and challenge. This
culture, which I have seen developing and
nurtured under the leadership of each region,
will continue to play a pivotal role in seizing
the opportunities of the recovery period in a
way that creates value for all of
our stakeholders.
As a Company, we are interested in generating
good financial results and contributing to
society. Long-term success is linked to our
ability to manage key opportunities and
challenges in a sustainable and cost-effective
manner. Our commitment to the Global
Compact, and to the achievement of the 2030
Sustainable Development Goals (SDGs), is
part of our proactive approach in meeting the
major challenges we face. To ensure that our
priorities are in place, during the third quarter
of 2021 we updated our materiality study,
which was presented to and approved by the
Culture, Ethics and Sustainability Committee.
The materiality process is a central aspect
in defining priorities and our approach to
sustainability integration, guiding us in
prioritizing resources, determining the focus
of our operations, and defining the aspects we
must manage in order to achieve the greatest
impact that will allow us to move forward and
respond to all our stakeholders.
For the sixth consecutive year we are part of
the Dow Jones Sustainability Index (DJSI),
growing in score, percentile and ranking
in the industry since 2016, placing us in
fifth place worldwide in 2021. This reflects
the commitment and perseverance of our
Company in sustainability management
and drives the organization to continue
working in this direction. In addition, in
order to increase the transparency of our
information, this year we have incorporated
the recommendations of the Sustainability
Accounting Standards Board (SASB) for
non-alcoholic beverage companies in our
Integrated Annual Report, reflecting a
greater commitment not only in terms
of disclosure, but also at the Company's
internal management level.
This year we have taken on important and
challenging goals for 2030. We firmly believe
that we are on the right track and that by
working hard we will ensure the long-term
success of our Company by providing the best
for our consumers, customers, employees and
shareholders. Progress on our strategy in 2021
has built a stronger business that is better
positioned to achieve future growth.
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We value what we have learned, which is
why we will continue to adapt to capitalize
on the opportunities we see in 2022 and
the years ahead.
THE MOST IMPORTANT
THING LEFT TO SAY IS
THANK YOU, TO EACH
AND EVERYONE, FOR THE
EFFORT, COMMITMENT
AND OUTSTANDING
ACHIEVEMENTS!
JUAN CLARO,
Chairman of the Board of Directors
1WE ARE COCA-COLA ANDINA2345678910
We ended 2021 with very positive financial
results, in an uncertain and adverse
environment that was still present, although
with a recovering market and fewer restrictions
on mobility. Consolidated sales volume
showed a growth of 12.8% when compared to
the previous year and 11% compared to 2019,
which, without considering the new beer
business in Chile, grew 8.6% when compared
to 2020 and 6.1% compared to 2019. As for
Adjusted EBITDA, compared to the previous
year, in 2021 we showed a growth of 13.3% and
11.6% proforma (without Chilean beer), thereby
reaching a record Adjusted EBITDA in the
history of Coca-Cola Andina of Ch$397,213
million. This was explained by the growth
in our operations in Chile, Argentina and
Paraguay. In relation to 2019 we showed a
consolidated Adjusted EBITDA growth of
13.9% and 11.8% proforma, and Adjusted
EBITDA was exceeded in Argentina, Chile and
Paraguay. The Chilean operation is particularly
outstanding, with Adjusted EBITDA growth
of 22.6% and 18.5% pro forma compared
to the previous year, and 29.3% and 24.1%
proforma, compared to 2019. We also highlight
a very good performance of our operations
in Argentina and Paraguay, with Adjusted
EBITDA growth when compared to 2020 and
double-digit growth when compared to 2019.
HOW DID WE DO IT?
BY ACTING CONSISTENTLY
ON A DAY-TO-DAY BASIS,
CONVEYING COHERENCE
WITH OUR CONVICTION OF
"A CARING ATTITUDE
AND MINDSET".
GRI: 102-14
We closed 2021 with excellent results,
financially and in commercial, strategic
and sustainability aspects. This year, more
than ever, we have seen the benefits of our
Company's culture, which values the care,
connection and closeness we show to one
another as we swiftly adapt to change
and challenge.
With a proactive and flexible approach to
meeting major challenges, this culture will
continue to play a pivotal role in seizing
opportunities in a way that creates value for
all our stakeholders.
Despite the adverse context and facing the
deepening complexities, we have made
progress in our comprehensive thinking
embodied in our 2025 Strategic Plan, in
which we manifest our sustainable, market-
oriented culture of generating efficiency and
productivity, present in each of our decisions
and daily operations.
IT IS TIME TO RECOGNIZE
AND CELEBRATE OUR HARD-
EARNED ACHIEVEMENTS!
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The support and conviction of our
long-term strategy, while navigating
short-term concerns, included continuing
to incorporate new categories to our
business platform, within a strategic
context of transforming ourselves into a
global beverage company with the goal of
providing better service to our customers
and consumers while strengthening our
beverage business. The partnership with
Viña Santa Rita is a clear example of
this, an agreement that will provide great
benefits to both companies and to our
consumers and customers. Likewise, the
incorporation of premium and global
brands such as Estrella Galicia and 1906,
and craft beer brands such as Therezópolis,
will allow us to replace the volume
of Heineken brands that we stopped
commercializing in October 2021, and
with the strength and experience achieved,
we will boost and enhance the portfolio
that we commercialize in Brazil. We are
confident that, with our capillary logistics
network and sales force, we will be able to
significantly increase the presence of these
brands in our territories.
At the same time, and as a fundamental
pillar of our portfolio in new categories,
we have continued to develop our digital
channels, where we have achieved a
profitable model that provides a high degree
of satisfaction, connecting our portfolio with
our customers and consumers in a simple
and direct way.
In Chile, in 2021, 1.5% of our Santiago sales
reached consumers directly through
MiCoca-Cola.cl, in Brazil we launched our
solution nasuacasa.coca-cola.com.br and in
Argentina we maintained sustained growth.
In addition, our KOBoss and miAndina B2B
solutions already have a robust operational
and technological model that ensures
customer satisfaction, which will allow us to
achieve significant growth in this channel
over the next few years.
WE UNDERSTOOD THAT
BEING AT THE FOREFRONT
OF SUCH IMPORTANT AND
VITAL ISSUES GENERATES
A NEW CULTURE THAT
DEVELOPS, NURTURES AND
PRESERVES THE PLACES IN
WHICH IT IS PRESENT.
Long-term success is linked to our ability to
manage and seize opportunities from our key
risks. We know that our vision of being the
leading beverage partner cannot be achieved
without integrating environmental, social and
governance considerations into all that we do.
1WE ARE COCA-COLA ANDINA2345678910
The main achievements with respect
to material environmental issues
are as follows:
a) In Water Management, we have succeeded
in reducing water use ratio (WUR) by
16.2% the last 5 years, achieving the double
challenge of reducing water use and
increasing the mix of returnables (which
uses more water). The Duque de Caxias
plant in Brazil is a model of efficiency
for the region, with a water ratio of 1.24.
In Chile, we have focused our efforts on
accelerated investment in technology that
will allow us to reduce the ratio to reach an
indicator of 1.5 by the end of 2022, which
poses a great challenge. This year we set a
goal of reaching a consolidated ratio of 1.27
by 2030.
b) In Energy Management, we are working to
reduce our carbon footprint, implementing
projects that have a positive impact on
the most critical processes, expanding the
implementation of clean energy for all our
operations where possible, and investing
in more fuel- and energy-efficient
distribution fleets and cold equipment,
respectively. Our energy ratio showed a
6.9% variation over the last 5 years. This
year we are targeting a consolidated ratio
of 0.255 by 2030.
c) In Sustainable Packaging, we have adopted
the "A World Without Waste" commitment
launched by The Coca-Cola Company to
collect and recycle 100% of our packaging
and to have 50% recycled resin in our
packaging by 2030. In our operations in
Argentina and Brazil we are using recycled
resin in our bottles, while in Chile and
Paraguay we are developing capabilities for
the recycling and reuse of collected and
recycled bottles. In July 2021, in Chile,
together with Coca-Cola Embonor, we
formed the company Reciclar, which is
already making the necessary investments
to be able to produce recycled resin as of
2024, which will allow us to start using
this resin in our bottles in this country.
Along the same lines, in early 2022 our
equity investee in Paraguay, Circular Pet,
began producing recycled resin to be used
in our bottles. Another way of promoting
sustainable packaging is through the
development of returnable packaging,
reaching 31.6% of sales volume in this type
of packaging on NARTD. In addition, this
year we set the goal of reaching 42.8% at the
consolidated level by 2030.
Being a company with a commitment to
life, with awareness of the real impact, is an
organizational engine connected to the being
and feeling of each person, therefore the
responsibility is substantial, it goes beyond
our doors and is given from the hearts and
wills of all of us who are Coca-Cola Andina
and transcends it.
To ensure that we understood the needs of
our teams, we listened quickly. We learned
and were swift to provide new tools and
resources when needed.
The Diversity and Inclusion Strategy guidelines
are organized into three specific pillars: Gender,
Handicap and Generations. By managing these
pillars, we want to incorporate the richness of
the plurality of each territory and community
that welcomes us into our organization. In
the last five years we went from 10% of
our employees being women to 15% in our
organization, and in Brazil, in the last five years
we went from 11% to 19% women. This year we
set a goal for 2030 to double the percentage of
women compared to 2020.
Starting with those who have the greatest
responsibilities in the company, we have made
our pillars a reality by implementing them
through the example of our leaders, for whom
the driving force and guide of the short term is
the horizon of the long term.
Reporting to our investors on our efforts to
use clean energy, reduce our carbon footprint,
enhance our customer service and improve
our relationship with the communities with
which we interact, has had an impact on all our
business decisions and has transformed us into a
better version of ourselves.
I am proud of the positive attitude and speed of
our teams during this fragile and complex time.
Each person was engaged, flexible and agile,
adapting to new challenges immediately.
We demonstrated the strength of our
values-based culture, which allows everyone
to continuously learn, act and empathize,
while serving our customers with passion
and excellence.
2021 proved once again that we are a close,
resilient, well-positioned and demanding
company with a clear vision and mission, but it
has also forced each of us to ask ourselves what
we need to change and improve to ensure we
remain a benchmark and successful leader.
We will continue to take a vigorous
approach to strengthening our priority
capabilities, including innovation, as we
consider additional opportunities to improve
efficiency and productivity.
Looking ahead, we know that post-
pandemic recovery will not be simple or
immediate. That is why my greatest source
of confidence that we will emerge stronger
is the intelligence, adaptability, speed,
commitment and passion of our teams.
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WE WILL CONTINUE TO
ADAPT TO SEIZE THE
OPPORTUNITIES WE WILL
SEE IN 2022 AND BEYOND.
Finally, I would like to congratulate
everyone at Coca-Cola Andina for these
achievements and invite them to renew their
efforts, attitudes and commitments to be
better with each passing day.
MIGUEL ÁNGEL PEIRANO
Chief Executive Officer
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STANDARDS
GRI:102-54
PRESENTATION CYCLES
GRI:102-52
DESIGN
The design of the Coca-Cola contour bottle,
elements of The Coca-Cola Company's
marketing campaigns, logos and all
references to The Coca-Cola Company's
brands contained in this Integrated Report
are the property of The Coca-Cola Company.
All artistic compositions and photographs
contained in this document are the property
of Embotelladora Andina S.A.
INTEGRATING
SUSTAINABILITY INTO OUR
BUSINESS MAKES SENSE
AND HAS AN IMPACT IF IT
CONSIDERS AND FOCUSES
ON ADDRESSING THE ISSUES
THAT ARE MOST RELEVANT
TO OUR STAKEHOLDERS.
The involvement of all stakeholders is an
essential element in defining our sustainable
management approach. The materiality
update process helps us prioritize areas and
resources to achieve impact and be able to
maintain our social license to operate.
SCOPE OF INFORMATION
GRI:102-45, 102-46; 102-50
The financial information considered in
this report includes Coca-Cola Andina
and its subsidiaries, and the sustainability
information includes Coca-Cola Andina
and its main subsidiaries (Coca-Cola Andina
Argentina, Coca-Cola Andina Brazil and
Paresa) for the period from January 1, 2021
to December 31, 2021, as described in Note
2.2 to the Financial Statements page 196.
The Integrated Report was prepared in
accordance with:
• The GRI Standards Standard version in
the Comprehensive option. The GRI Table
of Contents is located on page 303.
• Guidelines of the Integrated Reporting
Framework of the International Integrated
Reporting Council (IIRC)
• Mandatory requirements of General
Standard No. 30 of Chile’s Commission for
the Financial Market (CMF).
• Principles established in the AA1000-
APS 2008 Accountability Standard of
inclusivity, relevance and response to
stakeholders.
• In addition, this Report is a communication
about the way in which Coca-Cola Andina
links its performance with the Sustainable
Development Goals (SDGs) of the United
Nations Global Compact.
• Sustainability Accounting Standards Board
(SASB); Sustainable Industry Classification
System (SICS) FB-NB: food and beverage
sector; non-alcoholic beverages. The SASB
Table of Contents is on page 155.
In accordance with Chilean law, this Integrated
Report is presented annually and is available
to our stakeholders 15 calendar days before
the General Shareholders' Meeting of the
corresponding year.
As part of our commitment to reduce
paper consumption, this Integrated Report
is presented only in digital version and is
available on our website and on the investor
relations application available on the App Store
and Google Play.
VERIFICATION
GRI: 102-56
The environmental, social and corporate
governance information was verified by
EY Servicios Profesionales de Auditoría y
Asesorías SpA.
PREPARATION AND APPROVAL
PROCESS
GRI:102-49
For the preparation of this Integrated Annual
Report, we formed a 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.
1WE ARE COCA-COLA ANDINA2345678910
1
SOMOS
COCA-COLA
ANDINA
2
3
4
5
6
7
8
9
10
OUR OPERATIONS
GRI: 102-4, 102-6, 102-7, 102-6, 102-8
828.3
Unit Cases Sold
(million)
282.2
Clients
(thousand)
55.3
Inhabitants
Consumers in our
territory (million)
10
Coca-Cola Andina
Bottling Plants
4
Subsidiary Plants
92
Distribution
Centers
2.86
Km2 franchised
territories
(million)
18,636
Collaborators
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MARKET SHARE
Soft drinks
Juices and Others
Waters
59.6%
47.5%
15.9%
62.2%
53.3%
24.8%
64.1%
39.9%
48.3%
75.9%
63.0%
52.5%
OUR FINANCIAL
RESULTS
Sales 2,847.6 (US$ million)
8%
24%
OUR PRIORITIES
FOR SUSTAINABLE
DEVELOPMENT
GRI:102-47
44%
24%
EBITDA 511.9 (US$ million)
13%
21%
CONSUMER
WELL-BEING
37.6%
Percentage of low or reduced
sugar beverages (on NARTD)
54.37
Kilocalories every 200 ml
43%
23%
EBITDA MARGIN 17.9%
15.5%
17.2%
17.8%
31.9%
201.2
Net Income
(US$ million)
1,933.1
Market
Capitalization
(US$ million)
Territory:
Argentina
Brazil
Chile
Paraguay
WATER MANAGEMENT
1.77
Water consumption:
lt. of water /lt. produced beverage
SUSTAINABLE
PACKAGING
31.6%
Share of returnable
packaging on total NARTD
Coca-Cola Andina Plants
Andina Empaques Argentina
Vital Jugos Plant
Envases Central Plant
Vital Aguas Plant
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, among others, 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 of Directors is composed of 14 members.
2. The last election of directors took place during the
General Shareholders’ Meeting held April 15, 2021.
GRI:102-18,102-22, 102-23
COMPOSITION OF THE BOARD OF DIRECTORS
Juan Claro González
Chairman of the Board of
Directors
Entrepreneur
Chilean
Year of incorporation: 2004
Rut° 5.663.828-8
José Antonio
Garcés Silva
Business Administrator
Chilean
Year of incorporation: 1992
Rut° 8.745.864-4
Marco Antonio
Araujo
Industrial Engineer
Year of incorporation:
2020
Foreign Citizen
Eduardo
Chadwick Claro
Civil Industrial Engineer
Chilean
Year of incorporation: 2012
Rut° 7.011.444-5
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
Mariano Rossi
Business Administrator
Year of incorporation:
2012
Foreign Citizen
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Salvador Said
Somavía
Vice-Chairman of the Board
of Directors
Business Administrator
Chilean
Year of incorporation: 1992
Rut° 6.379.626-3
Gonzalo Said Handal
Business Administrator
Chilean
Year of incorporation: 1993
Rut° 6.555.478-K
Rodrigo
Vergara Montes
Business Administrator
Chilean
Year of incorporation: 2018
Rut° 7.980.977-2
Carmen
Román Arancibia
Attorney at Law
Chilean
Year of incorporation: 2021
Rut° 10.335.491-9
Felipe Joannon Vergara
Economist
Chilean
Year of incorporation: 2018
Rut° 6.558.360-7
Domingo Cruzat
Amunátegui *
Civil Industrial Engineer
Chilean
Year of incorporation: 2021
Rut° 6.989.304-K
Georges Antoine De
Bourguignon Arndt
Economist
Chilean
Year of incorporation: 2016
Rut° 7.269.147-4
Following, we identify those people who are
not currently directors of the Company, but
who were directors within the last two years:
María del Pilar Lamana Gaete
Business Administrator / Chilean
Last re-election: April 16, 2020.
Date of termination in office: April 15, 2021
Rut° 8.538.550-K
Arturo Majlis Albala
Attorney at Law / Chilean
Last re-election: April 16, 2020.
Date of termination in office: September 29, 2020
Rut° 6.998.727-3
Enrique Rapetti
Accountant / Foreign Citizen
Last re-election: April 19, 2018.
Date of termination in office: April 16, 2020.
Manuel Arroyo
Business Administration and Law Degree / Foreign
Citizen
Elected on April 19, 2018.
Date of termination in office: April 24, 2019
* independent directors.
°Chilean Tax ID
For more information on the experience of the directors,
see page 82.
As of December 31, 2021, 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 106 of this document. No other Company directors
hold Company shares.
1WE ARE COCA-COLA ANDINA2345678910
Chief Financial
Officer
Chief Strategic
Planning Officer
Chief Legal
Officer
Chief Human
Resources Officer
Chief
Information
Technology
Officer
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MANAGEMENT
STRUCTURE
Executive
Committee
Directors'
Committee
Board of
Directors
Chief Executive
Officer
Culture, Ethics
and Sustainability
Committee
Internal
Audit
Audit
Committee
General Manager
Argentina
General Manager
Brazil
General Manager
Chile
General Manager
Paraguay
PRINCIPAL OFFICERS
GRI: 102-4, 102-6, 102-18, 102-19
Miguel Ángel Peirano
• Chief Executive Officer
• Electrical Engineer
• In office since January 1, 2012
• Rut 23.836.584-8
Andrés Wainer
• Chief Financial Officer
• Economist
• In office since November 1, 2010
• Rut 10.031.788-5
Fernando Jaña
• Chief Strategic Planning Officer
• Civil Industrial Engineer
• In office since May 1, 2019
• Rut 12.167.257-K
Jaime Cohen
• Chief Legal Officer
• In office since September 1, 2008
• Attorney at Law
• Rut 10.550.141-2
Martín Idígoras
• Chief Technology Officer
• Systems Engineer
• In office since November 5, 2018
• Rut 22.526.397-3
Gonzalo Muñoz
• Chief Human Resources Officer
• CPA
• In office since January 1, 2015
• Rut 7.691.376-5
ARGENTINA
Fabián Castelli
• General Manager
• Industrial Engineer
• In office since April 1, 2014
• DNI 17.744.981
BRAZIL
Renato Barbosa
• General Manager
• Economist
• In office since January 1, 2012
• CPF 183.430.901-87
CHILE
José Luis Solórzano
• General Manager
• Business Administrator
• In office since April 1, 2014
• Rut 10.023.094-1
PARAGUAY
Francisco Sanfurgo
• General Manager
• Mechanical Engineer
• In office since January 1, 2005
• Rut 7.053.083-K
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EXECUTIVE TEAM
OF OUR OPERATIONS
GRI: 102-4, 102-6, 102-18, 102-19
ARGENTINA
Fabián Castelli
General Manager
BRAZIL
Renato Barbosa
General Manager
CHILE
José Luis Solórzano
General Manager
PARAGUAY
Francisco Sanfurgo
General Manager
Fernando Ramos
Administration and Finance Manager
Rui Barreto
Commercial Manager
Alejandro Zalaquett
Administration and Finance Manager
Paola Rolando
Human Resources Manager
Marcio Bauly
Sales Manager Rio de Janeiro
Pablo Bardin
Operations Manager
Rodrigo Klee
Operations Manager
Santiago López Novotny
Supply Chain and Logistics Manager
David Parkes
Administration and Finance Manager
Diego Garavaglia
Commercial Manager
Ariel Molina
Legal Manager
Daniel Caridi
General Manager Andina Empaques
Argentina S.A.
Max Ciarlini
Human Resources Manager
Fernando Fragata
Legal and Institutional Relations Manager
Rodrigo Ormaechea
Growth, Strategic and Digital
Transformation Manager
Rodrigo Marticorena
People Manager
Javier Urrutia
Legal Manager
Alejandro Vargas
Operations Manager
Rodolfo Peña
Market Manager
Eduardo Yulita
Finance, Administration, Systems and
Procurement Manager
Melina Bogado
Commercial Manager
Leonardo Calvete
Quality Manager
María Teresa Llamosas
Human Resources Manager
Alejandro Varas
Production Manager
Julio Fiandro
Supply Chain and Logistics Manager
Sergio Venosa
Information Technology Manager
Ángel Almada
Public Affairs and Community Manager
Rafael Ramos
Maintenance Manager
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Sustainable value creation strategy
2SUSTAINABLE VALUECREATION1345678910
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A MORE SUSTAINABLE,
DIGITAL AND HEALTH-
CONSCIOUS CONSUMER.
GRI: 102-11, 102-15, 102-29
We are part of a global environment that
presents great challenges, which we gather,
analyze and incorporate in our materiality
process and in the subsequent definition of
the Sustainable Value Creation Strategy of
the Company.
The COVID-19 pandemic has accelerated
the emergence of sustainability-related
megatrends, a scenario in which disruption
can be triggered by socio-political conflicts,
climate disruption or far-reaching health
problems. In this context, the depth of the
crisis unleashed by the coronavirus made
the entire world more aware of the risks that
began to arise or that began to accentuate. It
should come as no surprise, therefore, that
infectious diseases and environmental issues
are at the top five risks most likely to occur
over the next decade, according to the 2021
edition of the World Economic Forum's
Global Risks Report.
MAIN INDUSTRY TRENDS
Regarding the beverage industry, the
following are the main trends observed:
CONSUMER EXPECTATIONS
AND VALUES
A CONSUMER MORE
INTERESTED IN KNOWING
THE ENVIRONMENTAL
IMPACT OF THE PRODUCTS
HE/SHE BUYS IS EMERGING
FROM THIS HEALTH AND
CLIMATE CRISIS AND,
CONSEQUENTLY, ONE WHO
IS WILLING TO CHANGE
CONSUMPTION PATTERNS.
To mitigate the negative impacts
of consumption, there is a focus on
sustainability, the ability to reuse and
recycle products, as well as their
ingredients and attributes.
Consumers are opting for products low
in sugars, fat or calories, as well as free of
preservatives and that are produced in a
more ecological way. They value brands
that move service from transactional to
personal. There is also a growing consumer
preference for online sales channels.
DIGITAL TRANSFORMATION
CLIMATE CHANGE IMPACT
NEW TECHNOLOGIES
ARE CHANGING THE WAY
COMPANIES, CONSUMERS
AND PEOPLE IN GENERAL
RELATE TO EACH OTHER,
IMPACTING SALES
CHANNELS, LOGISTICAL AND
OPERATIONAL CHALLENGES
AND MARKET EXECUTION.
TOOLS SUCH AS B2B, B2C,
ARTIFICIAL INTELLIGENCE
OR VIRTUAL REALITY
REQUIRE US TO STAY AT
THE FOREFRONT OF
DIGITAL INNOVATION.
Automation and digital solutions have had a
significant importance in the management of
efficiency, especially in the management of
logistics chains, where there is a large amount
of hidden technology, which has allowed to
increasingly, optimize management impacting
on transversal areas.
In the case of the Latin American food
industry, the increase in the use of mobile
devices, the high percentage of internet
access, advances in the digitization of
markets and the increase in online payment
alternatives, have implied a significant
increase in sales by digital means.
However, this transformation is introducing
risks related to data privacy.
Business leaders must consider
environmental risks.
The impacts of climate change, biodiversity
loss and water uncertainty – among others –
threaten more than supply chains and physical
infrastructure.
Another accelerating challenge is that
associated with the effects of climate change.
The Intergovernmental Panel on Climate
Change (IPCC) has estimated that global
planet temperature could rise between 1.1°C
and 6.4°C this century. This is encouraging
greater awareness of people about the
importance of environmental protection and
the responsibility and impact that companies
have on biodiversity.
At the same time, countries have begun to
implement several environmental regulations
and legal restrictions, causing a radical
transformation of the business models
followed so far.
The decarbonization of world economy
will be one of the greatest transformations
ever undertaken.
2SUSTAINABLE VALUECREATION1345678910
LESS USE OF PLASTIC
SUSTAINABLE FINANCE
An Oceana study revealed that between 21
billion and 34 billion PET bottles become
marine pollution every year. At the same
time, it was evidenced that the 10% increase
in the use of returnable bottles in all coastal
countries instead of single-use disposable
PET bottles, helps reduce plastic pollution
from PET bottles in the oceans by 22%.
This indicates that beverage companies
have the ability to increase the sale of
returnable bottles and decrease marine
plastic pollution, proving to be an effective
initiative to reduce pollution in our oceans.
The use of returnable packaging will be
encouraged, thus favoring circular economy
or the use of packaging provided directly by
the consumer.
An increasing number of investors are
demanding that capital markets move towards
a long-term, inclusive and sustainable model.
Environmental, social and governance (ESG)
criteria are increasingly integrated into
investment decisions, which are growing in
sophistication from initial undifferentiated
approaches and are expected to increase
dramatically over the next decade.
The standardization, measurement and
aggregation of non-financial data is necessary
to help the financial sector make more
sustainable investment decisions.
In this context, the European Council
approved the "European Green Deal", a
comprehensive and long-term strategy to
achieve climate neutrality by 2050. As part of
this agreement, it establishes targets to reduce
Greenhouse Gas (GHG) emissions of at least
55% by 2030 –taking 1990 as a reference– and
reach net zero emissions by 2050.
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In the Company we work and care about
maintaining and increasing the trust,
security and legitimacy that our stakeholders
give us. We understand that we cannot
design new and innovative solutions if we do
not first understand the problems that affect
them. In 2021 we consulted and updated our
materiality matrix. This allowed us to have
a shared understanding of the context and
challenges we face as a society, to understand
how our strategy integrates these aspects,
and to make the necessary adjustments to
accelerate the transformation towards a more
sustainable world.
The following table shows our value chain and
the stakeholders with whom we relate, who have
the ability to influence our strategy. The way we
manage the business and network reflects our
Company’s values and vision, which allows us to
create sustainable value for all of them.
OUR VALUE CHAIN AND
RELATIONSHIP WITH
STAKEHOLDERS
GRI: 102-21, 102-29, 102-31, 102-40,
102-42, 102-43, 102-44, 102-34, 102-9
Coca-Cola Andina's commitment to a more
sustainable future is a path that we cannot
complete alone; having the support and
collaboration of our stakeholders is a central
element, which allows us to enhance integra-
tion along our entire value chain and achieve a
greater impact for society as a whole.
Consumers
Clients
Suppliers
Collaborators
Community,
Recyclers
Investors and
Analysts
Shareholders
Regulator
The Coca-Cola
Company
GRI:102-9,102-43.
For more information click here
2SUSTAINABLE VALUECREATION1345678910
The materiality process is central to
defining priorities and our approach
to integrating sustainability. It is what
supports us when prioritizing resources,
determining the focus of operations and
the aspects that we must manage in order
to achieve the greatest impact that allows
us to move forward.
In line with the provisions of the
AccountAbility AA1000APS (2018)
standard and with the principles of inclusion,
materiality, responsiveness and impact, the
Company has defined a materiality analysis
process that allows us to identify and evaluate
priority issues for stakeholders, weigh them
according to their relevance and compare them
with the priorities of the Company and with
our business strategy.
This considers the effects on the economy, the
environment and people, in order to verify
alignment (or misalignment) and identify any
areas for improvement.
This process also incorporates our disclosure,
which includes the content of this Integrated
Annual Report, which is aligned with the
principles and elements of the International
Integrated Reporting Council (IIRC) and is
prepared in accordance with the standards of
the Global Reporting Initiative.
In this period, to improve the transparency
of our information for investors and
other stakeholders, we have added the
recommendations of the Sustainability
Accounting Standards Board (SASB) for
non-alcoholic beverage companies.
The result of this analysis is presented in the
"2021 Materiality Matrix and Management
Approach" table, with its list of relevant
topics and also linked to the Sustainable
Development Goals (SDGs) to achieve long-
term growth and development.
It has been approved by the Culture, Ethics
and Sustainability Committee, a body
responsible for approving and monitoring
objectives and metrics to measure progress.
The following are our main material issues and
management approach:
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GRI: 102-11, 102-21, 102-29, 102-34, 102-43,
102-44, 102-46, 102-47, 103-1, 103-2, 103-3,
AT COCA-COLA ANDINA
WE ARE COMMITTED TO
IDENTIFYING, MANAGING
AND DISCLOSING OUR
MATERIAL ISSUES, AS
WELL AS THE RISKS AND
OPPORTUNITIES WE
RECOGNIZE.
2021 MATERIALITY MATRIX AND MANAGEMENT APPROACH
CORPORATE GOVERNANCE
Business growth pillar
Material issue
SDG
Why is it important?
How do we manage it?
How do we measure it?
Governance
excellence
Corporate Governance
• Risk management.
• Information security.
• Transparency in business
management.
GRI:102-44,102-46,102-
47,103-1, 103-2, 103-3
A Corporate Governance model
of excellence and the integration of
business risks into it are essential
and transversal elements for
all companies.
Our Corporate Governance
system and management
become an essential piece
to create value not only for
shareholders, but for all
our stakeholders. This issue
is the basis on which the
organizational culture is
built, that allows good deeds.
• Board attendance at
sessions.
• Approval of audits.
• Investor relations metrics.
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Business growth pillar
Material issue
SDG
Why is it important?
How do we manage it?
How do we measure it?
ENVIRONMENTAL
Water management
• Water balance management
• Water consumption
• Water consumption in water
stress areas
• Water resource risk
management
Value Chain
Efficiency
and Productivity
GRI:102-44,102-46,102-
47,103-1, 103-2, 103-3
Sustainable packaging
• Packaging lifecycle
management
• Waste management
(excludes primary
packaging)
• Inclusive Recycling
Energy management and
climate protection
• Energy consumption
• Percentage of energy
consumed from renewable
sources
• Management of GHG
emissions
At Coca-Cola Andina we
are aware and careful in
the use of this resource.
We continuously and
permanently seek to reduce
our water consumption and
protect local water sources for
future generations. We work
on four strategic axes: reduce,
reuse, recycle and replenish.
We are committed to
managing initiatives and
projects that allow us to
continue reducing the
impact of packaging on the
environment. Our pillar of
reusing through returnable
packaging is the most
responsible solution for the
care of the environment and
is the core of our packaging
strategy, along with the pillars
of collecting, recycling and
reducing.
We actively work to reduce
our energy consumption,
increase the percentage
of energy from renewable
sources and take action
to reduce GHG emissions
throughout the value chain.
• Efficiency in water
consumption.
• Access to water.
• Water replenishment.
• Participation of returnable
packaging on total NARTD
sales.
• Use of recycled resin.
• Collection of bottles.
• Bottle lightweighting.
• Generation of solid waste.
• Recycling of solid waste.
• Efficiency in energy
consumption.
• Carbon footprint emissions.
• Packaging life cycle analysis.
Water is an essential resource, for
life and our business; access to
this resource is a human right.
Waste management and how
it affects the environment
is a growing concern of the
people who inhabit the planet;
the impact generated by the
discarding of consumer products
directly affects the quality of life
of living beings.
The efficient use of energy not
only generates economic benefits
for the Company, but also for the
community at large, as it makes
available a scarce resource and
public good. Our stakeholders
have conveyed to us their concern
regarding the responsible use of this
resource and the active protection
of climate change, to limit the
increase in global temperature to
1.5 ° C in accordance with the Paris
Agreement and protect the future
of our planet.
2SUSTAINABLE VALUECREATION1345678910
Business growth pillar
Material issue
SDG
Why is it important?
How do we manage it?
How do we measure it?
ENVIRONMENTAL
Value Chain
Efficiency
and Productivity
GRI:102-44,102-46,102-
47,103-1, 103-2, 103-3
Supply chain management
• Management
of environmental and social
impacts of the supply chain.
• Management of critical
suppliers.
• Respect for human rights.
The management of our entire
supply chain has an impact
both on our operation and on
the integration of social and
environmental management of
our suppliers.
Along with TCCC, we work
in partnership with our
suppliers to respect and
protect the human rights
of all those who work in
our supply chain. We have
a supplier code of conduct
and seek to ensure that our
suppliers abide by it and
have a positive impact in the
countries where we operate.
• Percentage of domestic
suppliers.
• Percentage of suppliers
evaluated.
SOCIAL
Business growth pillar
Material issue
SDG
Why is it important?
How do we manage it?
How do we measure it?
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One of the concerns of
individuals and governments
is the healthy eating habits of
communities; in this sense, the
decrease in sugar in our portfolio
is a relevant issue to manage, as
well as the quality and safety
of products.
We work to expand our
portfolio and offer consumers
a wider variety of great-
tasting beverages, including
more low- or sugar-free
options and reformulating
our products.
• Kilocalories sold on total
liters sold.
• Percentage of sales of
reduced or sugar free
categories.
Market leadership
Broad portfolio,
channels and geographies
Consumer Well-being
• Wellness of products, with
less sugar and healthier.
• Quality, safety and
excellence of products.
• Responsible marketing
management and labelling.
• Portfolio breadth,
satisfaction of consumer
preferences.
GRI:102-44,102-46,102-
47,103-1, 103-2, 103-3
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Business growth pillar
Material issue
SDG
Why is it important?
How do we manage it?
How do we measure it?
SOCIAL
Market leadership
Customer satisfaction
• Customer satisfaction.
• Innovation and
digitalization.
Broad portfolio,
channels and geographies
GRI:102-44,102-46,102-
47,103-1, 103-2, 103-3
Agility, flexibility
and commitment
GRI:102-44,102-46,102-
47,103-1, 103-2, 103-3
Talent & diversity
• Internal climate
management.
• Diversity and inclusion.
• Equitable compensation.
• Talent development and
attraction.
Community Engagement
• Economic and social
development of local
communities.
• Respect for human rights.
• Customer satisfaction.
• Customer complaints.
Our customers are a fundamental
link for the sustainable growth
of the business and our bond
with consumers. Therefore, being
attentive to their requirements
and needs is a central element of
the strategy.
The closeness with our
customers allows us to
achieve their constant
development and achieve
the highest levels of service.
We measure and manage the
variables that impact on their
satisfaction, we address their
concerns and requirements,
and we innovate especially in
terms of digitalization.
These are relevant aspects in
today's companies, generating
a workspace where people
feel valued and encouraging
diversity of thoughts, with a real
commitment to building a diverse
and inclusive workforce in all its
dimensions (gender, generations,
disability, among others) and the
development of human talent.
At Coca-Cola Andina we seek
to provide our employees
with the best place to work,
convinced that happiness at
work is fundamental for the
development of our activities,
the well-being of our people,
economic growth and the
success of the organization.
Companies have a fundamental
role as drivers in the social and
economic development of the
local communities where they
operate, contributing with shared
value initiatives and ethical and
transparent relationships towards
all stakeholders.
At Coca-Cola Andina we
take on that responsibility,
developing relationship
programs with our nearby
communities that allow us
to generate a real impact on
people's quality of life.
• Internal work environment.
• Employee turnover
• Diversity and inclusion.
(%Women, % Disabled)
• Training and formation
by employee, gender and
category.
• Percentage of collaborators
with performance
evaluation.
• Occupational health and
safety (LTIR).
• People benefiting from
social programs.
• Investment in community
programs.
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C O M M U N I T Y COLLABORATORS
Talent and
diversity
Community
Involvement
S
U
P
P
L
I
E
R
S
Water
management
Agility, flexibility
and commitment
Sustainable
packaging
Market
leadership
Value chain efficiency
and productivity
Energy
management and
climate protection
SUSTAINABLE
VALUE CREATION
STRATEGY
Supply chain
management
Broad portfolio, channels
and geographies
Governance
excellence
Business grow t h p i
Consumer
well-being
s
l a r
l
Corporate
governance
Material i s s u e s
E
R
S A
N
A
LYSTS
SH
ARE
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R
S
A
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O
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N
M
E
N
T
S
R
E
M
Customer
satisfaction
O
T
S
U
C
C
C
C
T
S
R
E
M
U
S
N
O
C
GRI: 102-1, 102-16, 102-40, 102-42, 102-44
To achieve our mission, we have developed a
strategy at Coca-Cola Andina that allows us
to give our stakeholders an opportunity for
profitable and sustainable growth in the long
term, based on the integration of growth pillars
and business sustainability, 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, and customer focus.
2SUSTAINABLE VALUECREATION1345678910
BUSINESS GROWTH PILLARS
GRI: 102-44, 103-1, 103-2, 103-3
MARKET LEADERSHIP
We work to lead the market in which we
operate, maintaining the growth of our core
business and accelerating the development
of new categories, within the framework of a
strategic and solid relationship with our main
partner, The Coca-Cola Company.
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 developing several channels
that allow us to reach our customers and
consumers throughout the territories 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 manufacturing network, focused on
the sustainable management of our costs,
as well as on the constant search for greater
efficiency and productivity.
We continuously improve the supply chain
through productive investments in the
operations network, redesigning processes
and making distribution agreements for the
integration of new categories of beverages,
achieving improvements in the relevant
indicators of our value chain:
We will go into detail about this growth
pillar in Chapter 4 “Our Value Chain”.
AGILITY, FLEXIBILITY AND
COMMITMENT
The resilience of the Company and our
business, together with the capacity
and flexibility of a great team, were
demonstrated more than ever this year in
light of the COVID-19 pandemic.
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 vast experience in
the industry, which operates under strict and
robust Corporate Governance standards.
Our management system and Corporate
Governance 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”.
Strategic Objectives 2025:
1) Grow in TCCC's core portfolio and enter new
categories.
2) Generate efficiency and productivity, while
containing costs.
3) Implement digital transformation.
4) Develop our human talent.
5) Explore inorganic growth opportunities.
6) Make progress in our material sustainability issues.
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All figures are shown in thousands of Chilean pesos.
Other
stakeholders
753,882,684
Suppliers,
contractors,
distributors
2,099,135,844
Total economic
value distributed
2,853,018,528
Retained
economic value
45,761,343
Government
payments
287,088,457
Salaries
216,192,088
Fixed assets and
intangible assets
purchases
144,027,296
Dividend
payments
106,347,165
Social
investment
227,678
GRI: 201-1, 207-1, 207-2, 207-3
In 2021 we have generated value for all our
stakeholders, distributing resources
as follows:
TOTAL ECONOMIC
VALUE GENERATED
2,898,779,871
For further detail see GRI table on page 303
2SUSTAINABLE VALUECREATION1345678910
GRI: 103-1; 103-2; 103-3
1.27
Water ratio
(WUR):
Liters of water
consumed per
liter of beverage
produced
42.8%
Sales volume
returnable
packaging
(on NARTD).
"World without
waste" goals
(www*)
0.255
Energy ratio
(EUR):
Liters of energy
consumed per
liter of beverage
produced.
Contribute
towards the
consolidation of
sustainable supply
chains.
2X
Double the
participation of
women among
employees (2020
base)
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Remain close,
promote
digitization and
increase customer
satisfaction.
40.75
Kilocalories sold
every 200 ml.
Contribute to
the progress
of the local
economies where
we operate.
WATER MANAGEMENT
GRI: 103-1, 103-2, 103-3, 303-1, 303-2, 303-3
SUSTAINABLE PACKAGING
GRI: 103-1, 103-2, 103-3, 301-1, 301-2, 301-3
CONSUMER WELL-BEING
GRI: 416-2
We focus on conscious water management,
with a legacy of ambition, innovation and
partnerships to "reduce, reuse, recycle and
replenish" the resource we use both inside
and outside our operations. During 2021,
we implemented a bold strategy to increase
water efficiency and will continue to invest
significantly in technologies to manufacture
our products with less water in the process.
These investments take into account the
simultaneous challenge of increasing our
returnable packaging, which must be washed
in order to be reused.
We recognize our responsibility in helping to
solve the global plastic waste crisis. "A World
Without Waste," our ambitious sustainable
packaging initiative with The Coca Cola
Company, aims to create systemic change
through a circular economy for our packaging.
This strategy has marked a renewed focus on
our entire cycle, from how bottles and cans
are designed and produced, to how they are
recycled and reused, through a three-part
approach: design, collection and partnership.
Our focal points to achieve our 2030 goals are
reuse, recover and recycle, and reduce.
The future is all about people's well-
being, and that is why the goals we set for
ourselves involve expanding possibilities and
contributing to health. The means to further
this approach drive us to continue our actions
to respond to consumers' wishes: to have more
choices in all categories, reduce added sugar
in products, provide more beverages with
nutritional benefits, provide clear nutritional
information, and ensure the availability of
quality products and high service standards.
For 2030, the challenges in this regard are
clear and we will work on them.
* WWW=World Without Waste
100% RECYCLABLE PACKAGING
50% RECYCLED RESIN IN BOTTLES
100% RECOVERY OF BOTTLES SOLD
ENERGY MANAGEMENT AND
CLIMATE PROTECTION
GRI: 201-2, 302-1, 302-2, 302-3, 302-4, 302-5, 302-6
Climate change affects our operations and
the communities in which we participate. We
are working to reduce our carbon footprint by
implementing projects that positively impact
the most critical processes, expanding the
adoption of clean energy for all our operations
where possible, and investing in more fuel-and
energy-efficient distribution fleets and cooling
equipment, respectively. Additionally, in 2021 we
set long-term goals for each of our operations,
with the associated necessary investments to
reduce the energy we consume in the production
of our beverages.
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CUSTOMER SATISFACTION
GRI: 416-1, 416-2
TALENT AND DIVERSITY
GRI:405-1
CORPORATE GOVERNANCE
GRI:102-18,102-17
COMMUNITY INVOLVEMENT
GRI: 413-1, 413-2
DIVERSITY, EQUITY AND
INCLUSION ARE AMONG
OUR HIGHEST PRIORITIES
AND ARE AT THE CORE OF
OUR VISION, VALUES AND
GROWTH STRATEGY.
We aspire to be a company that is
increasingly connected with our consumers
and with society as a whole, for which we
must be a reflection of it by aiming for a
diverse work environment, with different
views and sensibilities. That is why 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 maintain the right balance between
the professional and personal lives of our
employees, so we will continue to develop
the flexible and remote work programs that
the COVID-19 pandemic prompted us to
accelerate. Finally, the challenges facing
women around the world remain enormous,
and purposeful, collective action over time
between the private sector, government
and civil society will be essential for
transformative change.
At Coca-Cola Andina, we strive every day
to be a Company focused on our customers,
who are an important part of the heart of
our business. For this reason, we have been
(and will continue) working on having an
increasingly relevant portfolio at the point
of sale, becoming our customers' favorite
commercial partner through a powerful
value offer derived from our strategy:
Total Beverage Company. Additionally, we
are working to support our relationship
with digital tools that allow our mutual
interaction to be increasingly fluid,
agile and generate greater value for our
customers. Finally, we have implemented
a single indicator in all our operations that
allows us to measure, identify and manage
improvement opportunities to increase the
degree of satisfaction of our customers in the
variables that are relevant to their business.
SUPPLY CHAIN MANAGEMENT
GRI:204-1, 414-1,414-2
In our supply chain, the challenges are
enormous: omnichannel distribution, with
sustainable supply chains, accelerating
digitalization with the incorporation of more
technological solutions, artificial intelligence
and machine learning. All this reinforces our
focus on commitment, agility and flexibility
towards the future.
Our Company is known for its robust and
outstanding Corporate Governance. We are
committed to uphold it aligned with the best
practices we identify in the marketplace.
Our sound business principles and practices
foster an innovative and collaborative
culture that is committed to ethical behavior,
accountability and transparency. We will
continue to develop policies and procedures
to provide timely and quality information
to our stakeholders regarding the evolution
of our business, as well as the Company's
current and future outlook.
People are at the very heart of everything
we do, from our employees to those who
are involved with our business and the
communities in which we operate. We are
convinced that we are a key player in the
society in which we operate, not only by
managing our business in a responsible and
transparent manner, but also by generating
concrete benefits to the companies that
provide us with products and services,
being strategic partners of the thousands
of customers who offer our products to
consumers. We will continue with the same
responsibility and transparency, providing
a valuable service and contributing to the
progress of local economies.
We will evaluate new communication
channels with the market to respond to
the information needs of this audience,
following the principles of quality, equality,
transparency and fluency. We will actively
participate in discussions with regulatory
bodies to develop ESG management
indicators and reports, which will allow
benchmarking and the dissemination of good
practices in the financial market. We believe
that companies have a role to play in creating
the systemic change necessary to achieve
a more fair and equitable society, a more
sustainable economy and a healthier planet.
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A total beverage company
3A TOTALBEVERAGE COMPANY 1425678910
Business pillar
MARKET
LEADERSHIP
BROAD PORTFOLIO,
CHANNELS AND
GEOGRAPHIES
Material issues
CONSUMER
WELL-BEING
Customer satisfaction
REVIEW COMPLETE
MANAGEMENT FOCUS HERE
"At Coca-Cola Andina
our goal is to become a
global beverage company,
providing the best service
to our customers, satisfying
consumers and responding to
all our stakeholders, in order to
achieve sustainable growth".
Miguel Ángel Peirano, Chief Executive
Officer, Coca-Cola Andina.
LEADING THE MARKET AND
SATISFYING OUR CONSUMERS
GRI: 416-1, 416-2
Our main source of business is non-alcoholic
beverages, which represent 92.6% of Coca-Cola
Andina's sales. We will continue to focus on
expanding volumes and revenues and leading
the market in which we operate, within the
context of a strategic relationship with The
Coca-Cola Company, a world leader in the
beverage industry and our main strategic
partner for 75 years.
Together, we work to create a sustainable
future that enables us to make a difference
in the lives of people, communities, and our
planet. We collaborate on marketing, product
development, technology, and shared-value
projects in the communities where we operate,
achieving significant synergies. In addition, the
Company provides us with a global vision of
consumer trends and preferences. With this, in
2021 we achieved a solid leadership position in
the markets in which we operate in most of the
categories in which we participate:
MARKET SHARE AND POSITION
IN THE INDUSTRY 2021
59.6%
47.5%
15.9%
Soft drinks
Juices and
others
Waters
In terms of geographic coverage, Coca-Cola
Andina has a vast presence in Latin America.
We are the largest bottler of Coca-Cola
brand beverages in Chile and Argentina
and the third largest in Brazil, in each case
in terms of sales volume. We are also the
only bottler of Coca-Cola brand beverages
in Paraguay. This allows us to diversify our
sources of volume, revenues and EBITDA,
as shown in Chapter 1. Our franchises have
strong expansion potential, particularly in
Brazil, Argentina and Paraguay, countries
that have per capita beverage consumption
rates with significant growth opportunities.
TOTAL PER CAPITA ANNUAL
CONSUMPTION 2021 (eq. 8 oz bottles)
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62.2%
53.3%
24.8%
Soft drinks
Soft drinks
Juices and
others
Waters
64.1%
48.3%
39.9%
Soft drinks
Juices and
others
Waters
271.0
204.1
187.6
388.1
Waters
24.0
18.0
25.3
107.5
Juices and other non-alcoholic beverages
23.0
18.1
16.1
65.0
75.9%
63.0%
52.5%
Beers and other alcoholic beverages
21.5
73.0
94.1
Soft drinks
Juices and
others
Waters
Argentina
Brazil
Chile
Paraguay
3A TOTALBEVERAGE COMPANY 1425678910
NUTRITIOUS
BREAKFAST
MEALS
AT HOME
DELICIOUS
SNACKS
RELAXING
AT HOME
PHYSICAL
RECOVERY
MOMENTS
TO SHARE
SABOR ORIGINAL
LIGHT - SABOR LIVIANO
SABOR ORIGINAL
SABOR ORIGINAL
ENERGY
Guaraná
Sabor Uv a
TÓNICA
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®
GRI:102-2
Coca-Cola
Trade Mark
Soft drinks
Flavors
Nutrition
Energy and
hydration
Beers
Spirits
and Wine
3A TOTALBEVERAGE COMPANY 1425678910
We strive to manage a broad portfolio that
allows us to connect with consumers at
different times of the day and adapt to their
preferences, while maintaining business
diversification: 71% of the volume comes
from soft drinks, while the remaining 29%
comes from a combination of juices, waters,
energy drinks, sports drinks, beers, spirits
and other alcoholic beverages.
Total Sales Volume 2021
7.4%
10.6%
11.1%
STRATEGIC PRIORITIES
OF THE PILLAR
GRI:103-1, 103-2; 103-3; 417-1
PRODUCT WELL-BEING,
WITH LESS SUGAR
ACCELERATE ENTRANCE
OF NEW BEVERAGE
CATEGORIES
QUALITY,
RESPONSIBILITY
AND TRANSPARENCY
Percentage of beverages with
low sugar content
Argentina
9.0%
Brazil
11.0%
27.9%
Chile
22.6%
21.0%
Paraguay
11.0%
25.0%
ANDINA
13.4%
37.6%
Kcal/Liter sold 2021
Argentina
64.6%
Brazil
Chile
Paraguay
ANDINA
371.8
295.6
382.7
309.4
276.2
199.3
367.4
322.6
346.4
271.8
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71.0%
Soft
drinks
Waters
Juices and
other non-
alcoholic
beverages
Beers
and other
alcoholic
beverages
"WE WILL CONTINUE TO
GROW THROUGHOUT
THE COCA-COLA BRAND'S
PRODUCT PORTFOLIO AND
ACCELERATE THE ENTRY OF
NEW BEVERAGE CATEGORIES,
LEVERAGING OUR ASSETS AND
DISTRIBUTION CAPABILITIES."
Fernando Jaña, Strategic Planning Officer,
Coca-Cola Andina.
PRODUCT WELL-BEING,
WITH LESS SUGAR
Note: low + mid cal (less than 5 gr of sugar / 100 ml ) on
NARTD
2010
2021
2016
2021
Growth of the non-alcoholic beverage
business, focused on low calorie segment
One of the Company's concerns is the
amount of calories and sugar contained in
our beverages. Responding to this, we are
constantly developing light, zero, sugar-free
and no-sugar-added versions of our brands,
expanding the portfolio of packaging
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
evidenced by the increase in the percentage
of consumption of our sugar-free and sugar-
reduced beverages in the total portfolio from
2010 onwards.
Increase the participation of stills in our business
Another trend that we have successfully promoted is the growing preference in the
consumption of stills categories, such as waters, juices, energy drinks and isotonics. The
constant launching of new products, together with a solid execution strategy in the market,
allowed for a significant growth of this category with respect to the total portfolio since 2010.
Percentage of stills volume with respect to total NARTD*
Argentina
Brazil
Chile
Paraguay
Coca-Cola
Andina
2010 2021
2010 2021 2010 2021 2010 2021
2010 2021
125.2 184.6 202.5 244.9 152.6 235.5
55.1
70.3
531.5 735.2
96%
85%
96% 83%
87%
69%
95%
82%
93% 79%
4%
15%
4%
17%
13%
31%
5%
18%
7%
21%
NARTD
Volume (MUC)
% soft drinks mix
on NARTD
% stills mix
on NARTD
Note: The analysis of the financial results of Embotelladoras Coca-Cola Polar was used as a source of information for the
data for Paraguay 2010.
3A TOTALBEVERAGE COMPANY 1425678910
HIGHLIGHTS OF THE YEAR
GRI: 103-1, 103-2, 103-3, 417-1
New Coca-Cola sin azúcar
(without sugar)
It is designed and aimed at all those people
who like Coca-Cola and want to enjoy it
while seeking to balance sugar intake. It has
a new image and a new recipe with a softer,
more refreshing, delicious taste and more
similar to the original Coca-Cola.
Aquarius in a returnable bottle
Coca-Cola Andina launched its first returnable
bottle in stills with Aquarius, in Grapefruit
and Pear flavors. Thanks to the "Single Bottle"
project, today we offer consumers an accessible
option in flavored beverages in the ideal
container for the care of the planet.
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ACCELERATE ENTRANCE OF NEW BEVERAGE CATEGORIES
We are a total beverage Company whose goal is to provide consumers with a complete offering
for all consumption occasions. To this end, we are expanding our portfolio in order to deliver
a more assorted product mix through strategic alliances with other beverage companies. With
this purpose, in 2018 we began the commercialization and distribution of alcoholic beverages
in the Chile operation, incorporating the entire Diageo product line into our portfolio and in
2019 that of Capel. In 2020, we strengthened our portfolio by signing a five-year agreement
with the brewer AB InBev (formerly Cervecería Chile S.A.) to distribute its brands Corona,
Stella Artois, Budweiser, Becker, Báltica, Cusqueña, Kilómetro 24.7 and Quilmes, among
others. This year 2021, also in Chile, we entered into an agreement to expand the business
and carry out the distribution of Viña Santa Rita's main brands, including Casa Real, Medalla
Real, Carmen and 120. In Brazil, the distribution agreement with the Estrella Galicia brewery
and the acquisition of the Brazilian craft beer brand "Therezópolis" were part of the long-term
strategy to complement the portfolio.
Beers
Other alcoholic beverages
Coca-Cola original flavor, less sugar
In response to consumer preferences for
reduced sugar in our beverages, TCCC has
created a variation of the classic Coca-Cola
recipe, with 30% less sugar. It began being
commercialized in Mexico in 2018 and has
since expanded to countries around the
world, including our franchise territories.
Guallarauco 1.0 Lt and 1.75 Lt in
tetrapack container
Guallarauco started cultivating subtropical
species and then began the agro-industrial
process of its fruits at origin, which allows
selecting and harvesting them at the optimum
point of ripeness, with all their aroma, flavor
and freshness. Focusing on natural products
with no added sugar, it surprises consumers
with new products with nutritional benefits.
Since July, we have been producing 1.0 Lt and
1.75 Lt juices in Tetrapack containers using
an ultra-clean process, and we are proud to
endorse this new product.
3A TOTALBEVERAGE COMPANY 1425678910
QUALITY, RESPONSIBILITY
AND TRANSPARENCY
GRI: 417-1, 417-2, 416-1, 416-2, 417-3
Certifications
Argentina
Brazil
Chile
Paraguay
Offer products of the highest
quality, ensuring their safety
With our portfolio, we seek to offer options
for a healthy life, and to achieve this we
work on diversity as well as on the quality
and safety of our products. The good health
of the population is directly related to food;
in this sense, we want to offer products of
excellence. To achieve this, we rely mainly
on three axes:
Sensory analysis program
It is a method used to measure, analyze
and interpret the responses on how food is
perceived through the senses. It consists of
evaluating the organoleptic properties of
the products - that is, everything that can
be perceived by the senses - and thereby
determining their acceptance by the
consumer. It is a method that collaborates
with quality measurement as part of the
validation process prior to marketing.
This program promotes the voluntary
participation of a key link, the employees
themselves, who are permanently trained so
that their senses can detect deviations.
422
TRAINED
PANELISTS
100%
PRODUCTS
TESTED
Quality ISO 9001
Environment ISO 14001
Health and safety OSHAS
18001 (or ISO 45001)
Food safety (FSSC22)
GAO, corporate
requirements of
The Coca-Cola Company
Behavior-based safety
Note: GAO audit in Paresa conducted in 2020.
Claims Indicator
2.9
3.9
8.5
3.2
6.8
5.6
2019
2020
2021
2019
2020
2021
4.6
4.6
3.4
0.5
0.4
0.4
2019
2020
2021
2019
2020
2021
Argentina
Brazil
Chile
Paraguay
Note: Claims KPI definition (Operational claims=No. operational claims*1,000,000/Bottles sold).
Note: the targets for 2021 were: Argentina 3.2; Brazil 5.2; Chile 7.5; Paraguay 0.5.
Responsible marketing and labelling
Responsible marketing
GRI: 417-1, 417-2, 417-3
We have a marketing policy which stipulates
that no advertising is directed to children
under the age of 12 for any of the company's
products, no advertising is contracted in
media whose audience of children under
12 years of age is greater than 35%, and no
children under 12 years of age are shown
drinking any of the products without the
presence of a responsible adult.
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Provide people with the
information they need
We use Guideline Daily Amounts (GDA), a
nutritional information tool presented in tablet
format on product labeling. In accordance with
The Coca-Cola Company's global policy, all
labels (except glass and water) must contain
the GDAs. We present the amount of calories,
along with the Percent Daily Value (%DV),
on the front of packaging, consistent with
our commitment to provide consumers with
transparent nutritional information on products.
In addition, a nutrition facts panel provides
additional data on protein, carbohydrates, fiber
and, where the product contains them, minerals
and vitamins. The non-caloric sweeteners
used in the Company's sugar-free (light/zero)
soft drinks are safe for the entire population,
including children over the age of two, pregnant
and lactating women.
3A TOTALBEVERAGE COMPANY 1425678910
Sales Volume Percentage by Channel
GRI: 203-1;
Percentage of Customers by Channel
Argentina
Argentina
Business pillar
MARKET
LEADERSHIP
BROAD PORTFOLIO,
CHANNELS AND
GEOGRAPHIES
Material issues
Consumer well-being
SATISFYING OUR CUSTOMERS
GRI: 103-1, 103-2, 103-3, 416-1, 416-2
Capturing growth opportunities requires not
only a broad and robust portfolio, but it also
has to be accessible to consumers on every
consumption occasion. To this end, we have
more than 274,000 customers, distributed
in different sales channels and efficiently
serviced by our distribution chain.
34.3%
33.4%
26.7%
5.6%
Brazil
Brazil
32.6%
21.7%
33.1%
12.6%
CUSTOMER SATISFACTION
Chile
Chile
REVIEW COMPLETE
MANAGEMENT FOCUS HERE
"At Coca-Cola Andina
our goal is to become a
global beverage company,
providing the best service
to our customers, satisfying
consumers and responding to
all our stakeholders, in order to
achieve sustainable growth".
Miguel Ángel Peirano, Chief Executive
Officer, Coca-Cola Andina.
49.8%
13.5%
26.3%
10.4%
Paraguay
Paraguay
40.5%
36.9%
11.9%
10.7%
Mom & Pops
Wholesales
Supermarkets
On-Premise
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71%
2%
3%
24%
47%
0%
2%
51%
82%
1%
1%
17%
71%
2%
1%
26%
3A TOTALBEVERAGE COMPANY 1425678910
CUSTOMER SATISFACTION
GRI: 103-1, 103-2, 103-3, 416-1, 416-2
We are a Company focused on our
customers; we have been working and will
continue to develop an increasingly relevant
portfolio in the points of sale managed by
our commercial partners. The measurement
of customer satisfaction is a key variable in
our management, so this year we challenged
ourselves to build an indicator with the same
methodology and measurement criteria
for the four operations, more modern and
in accordance with the standards that our
customers demand today. Our objective
is to be able to determine our customers'
perception of the company and its processes,
in order to continue improving the service
experience and to be an increasingly relevant
partner for the development and growth of
our customers. The measurement is based on
the following criteria:
QUESTION
What is your overall satisfaction
with the company?
METHOD AND SCALE
OF CALCULATION
Numerical scale from 1 to 10
Calculation: % Satisfactory - % Unsatisfactory
*Satisfactory: Responses from 7 to 10
*Unsatisfactory: Responses from 1 to 4
The operations in Argentina and Chile
have measured the indicator for the full
year, allowing us to have a comparable
base in 2022 to identify opportunities for
improvement and generate concrete plans
to manage customer satisfaction. In Brazil
and Paraguay we began measuring the
indicator in the last quarter of 2021, both
with excellent results of 81.3% and 97.6%,
respectively. Paraguay's results stand out.
97.6%
Min
-100%
Max
100%
Customers are the fundamental pillar
of our value chain; in addition to being
our strategic partners in the search for
permanent consumer satisfaction, they
generate a great social impact and growth in
the local economies where they are located.
At Coca-Cola Andina we are at their side and
work with them in several programs:
• “Siempre juntos”
FREQUENCY
Monthly
CUSTOMERS
Traditional channel
(Mom & Pop's)
• “Mi barrio mi almacén”
• “Estemos abiertos”
Click here to
view programs
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INNOVATION: DIGITAL
TRANSFORMATION, A
CUSTOMER-FOCUSED COMPANY
At Coca-Cola Andina we have an ambitious
digital transformation agenda, a process
we significantly accelerated in early
2020. Although we had been working on
innovation for many years, the focus was
mainly inward, seeking greater productivity
and efficiency. Without neglecting the above,
the new stage seeks to improve the experience
of our customers and consumers, solving
their needs and making them participants in
our business process, supported by different
digital products and services.
"OUR VISION IS
TO TRANSFORM
COCA-COLA ANDINA
INTO AN ORGANIZATION
DESIGNED FROM, WITH
AND FOR THE CUSTOMER,
GENERATING VALUE AND
SUSTAINABLE RESULTS,
TAKING ADVANTAGE OF
DIGITAL, LOGISTICAL
AND COMMERCIAL
INFRASTRUCTURE AND
TECHNOLOGY, ADAPTING TO
NEW AND FUTURE CHANGING
AND DYNAMIC SCENARIOS."
Fernando Jaña, Strategic Planning
Corporate Officer.
3A TOTALBEVERAGE COMPANY 1425678910
DIGITAL TRANSFORMATION
PRINCIPLES
Omnichannel
Safety
Data
CLIENTS AND
CONSUMERS
Productivity
and Value
Governance
Agility
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• Customer & Consumer Centric: co-
creation model, generating value together
with the customer and the consumer.
• Omnichannel, ensuring that all our
customers have the same experience in our
different relationship platforms.
• Data: capturing quality information and
providing feedback to our processes and
platforms, which allows us to deliver a
better value proposition.
• Governance and integration of Coca-Cola
Andina in key processes.
• Agility in analysis, acting with speed and
clarity.
• Productivity and value, making the
complex simple.
• Safety for operational continuity and
information protection for all customers.
AT COCA-COLA ANDINA
WE HAVE DEFINED SEVEN
DIGITAL TRANSFORMATION
PRINCIPLES THAT
GOVERN ALL OUR DIGITAL
INITIATIVES:
DIGITAL STRATEGY FRAMEWORK
Our Work Model
Enhance our Consumers' experience,
understanding their behavior.
Increasing Productivity & Efficiency of
our Internal Processes
Consumer
Digitization
Customizing value propositions, ensuring the
strategy and evolving communication to our
customers.
Back:
Administration,
Finance, HR
Front:
Commercial,
Operations,
Logistics
TRANSFORMING
OUR VALUE
PROPOSITION
Digitization
of our
Processes
Customer
digitization
100% Digital Clients (Pure Players)
Clients with Digital Development
Clients without
Digital Development
C
U
S
T
O
M
I
Z
A
T
I
O
N
OUR BUSINESS MODEL IS
BASED ON DIGITIZING THE
OPERATIONAL PROCESSES
OF CUSTOMER AND
CONSUMER RELATIONS AND
INTERNAL PROCESSES.
Digital payments
Data & analytics
3A TOTALBEVERAGE COMPANY 1425678910
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GRI: 102-44
We are a Company designed from, with and
for the client, which is why we make them
part of the different initiatives we implement
with the purpose of satisfying their needs.
The initiatives we develop are categorized in
five development verticals:
How we relate to our customers
solutions that offer a personalized, valued
and connected experience with our
customers, facilitating the self-management
of each one of them;
Relationship with consumers
we engage directly, capturing and delivering
value from that connection;
Internal processes
set of solutions and digital platforms that
help us increase the flow of information
between our operations, achieving greater
productivity and efficiency;
Data analytics
we seek to transform ourselves into a data
driven decision company, where 100% of
decisions are based on data;
Digital payments
sustainable payment solution, offering
simple, fast and secure tools, allowing us to
build customer and consumer loyalty.
ENGAGING WITH OUR CUSTOMERS:
PROGRESS ON PRINCIPAL
INITIATIVES
ENGAGING WITH OUR CONSUMERS:
PROGRESS ON PRINCIPAL
INITIATIVES
DIGITAL PAYMENTS: PROGRESS ON
PRINCIPAL INITIATIVES
• Mi Coca-Cola Clientes
• KO Boss
• Coke.net
• Micoca-cola.cl
• Tienda Coca-Cola
• Promos digitales
• Pagos digitales
Click here to
view initiatives.
3A TOTALBEVERAGE COMPANY 1425678910
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4
Our value chain
4OURVALUECHAIN1325678910
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GRI: 201-2
We have an extensive sales and logistics
network at Coca-Cola Andina, composed
of 92 strategically located distribution
centers. A fleet of 2,789 trucks, including
our own and third-party trucks, allowing us
to deliver multiple types of beverages in a
wide geographic area, covering more than
2.8 million square kilometers and visiting
more than 282,000 points of sale.
These factors represent a strength
that makes it easier for us to capture
opportunities as we integrate new beverage
categories, improve productivity and
efficiency, and improve our profitability
through scale economies. In addition, we are
continuously improving our supply chain
through investments in optimizing our
logistics and production network, which is
reflected in the evolution of our results.
EBITDA (MILLION CLP/YEAR)
397,213
337,890
COMMITMENT ON
CLIMATE CHANGE AND
ENVIRONMENTAL PROTECTION
The COVID-19 pandemic and its
consequences on society have revealed
the urgency of environmental and social
issues. At Coca-Cola Andina we believe
that the best way to recover is to support
the sustainable development of our
communities, our economies and our planet.
Our business model and its strategy consider
commitments regarding the challenges
imposed by climate change: reduction of
GHG emissions, increased use of returnable
bottles and lower water consumption.
To carry out these commitments,
innovation is at the center of our strategy
and is what allows us to advance in
the implementation of automation,
productivity and efficiency projects
throughout our value chain. All of this
is reflected in the improvement of our
environmental indicators, metrics that we
will detail throughout this chapter.
"OUR COMMITMENT
TO WATER STEWARDSHIP
IS TOTAL, IT IS SUSTAINED
IN OUR VALUES AND
BEHAVIORS AND IT IS
PERMANENT; WE WILL
CONTINUE TO INNOVATE
OUR PROCESSES TO
FURTHER REDUCE OUR
WATER USE IN THE
COMING YEARS."
Miguel Ángel Peirano, Chief Executive
Officer, Coca-Cola Andina.
2017
2018
2019
2020
2021
4OURVALUECHAIN1325678910
Business pillar
VALUE CHAIN
EFFICIENCY AND
PRODUCTIVITY
Material issues
WATER MANAGEMENT
GRI: 103-1, 103-2, 103-3, 201-2, 303-1,
303-2, 303-3, 303-5
CONTEXT
WATER USE CYCLE
Water is a fundamental element for people
and the planet; it is an important input
for our operations and a shared resource
with the communities. Water is a material
issue for Coca-Cola Andina and we address
it in a comprehensive manner and with
total coverage, encompassing each of our
Operations and communities.
Efficient and sustainable water management
is one of our greatest challenges; it is a critical
practice to address growing water risks and
improve resilience to the impacts of climate
change. We are committed to reducing water use
by increasing the efficiency of our Operations.
The origin of the water is diverse and
varies according to the configuration of
each production facility in each Operation.
In general terms, the largest proportion
corresponds to groundwater sources. The
extracted resource is used in the production
processes and is consumed directly in
beverages or indirectly for auxiliary services.
During the production phase, we reuse
water and the remaining water is treated as
effluent to return it to the hydrological cycle
in appropriate conditions. We do this by
applying the highest standards, which are
superior or equal to local regulations.
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Sustainable packaging
Energy Management
and Climate Protection
Supply Chain
Management
REVIEW COMPLETE
MANAGEMENT FOCUS HERE
"We aspire to be leaders in
generating efficiencies and
productivity gains in all our
operations, in a sustainable and
consistent manner, covering
our entire value chain. We have
made progress with multiple
initiatives, mainly through
investments in infrastructure
and process improvement,
focusing on digitalization
and automation."
Andrés Wainer, Chief Financial Officer,
Coca-Cola Andina.
WATER USE CYCLE 2021 (m3/year)
Reuse
Other
0
Rain
545
Surface
354,143
Ground water
5,323,868
Network
1,081,408
Auxiliary services
2,937,094
Production process
2,937,094
Beverage
3,822,870
Water source origin
6,759,963
Customer / Consumption
3,822,870
Own
treatment
1,983,532
Third party
treatment
875,135
Eff luent
disposal
2,858,667
4OURVALUECHAIN1325678910
STRATEGIC AXES OF OUR
WATER MANAGEMENT
GRI:103-1; 103-2, 103-3, 303-1, 303-2,
303-3, 303-5
REDUCE
ACTIONS
• Improve water quality through technology
and innovation.
REDUCE
• Reduce losses in the production and
washing processes.
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REUSE
RECYCLE
REPLENISH
We prioritize water management at all
organizational levels, from our Board of
Directors, Chief Executive Officer, general
managers, department managers and every
employee in the operation. The key factors
for success are the permanent effort through
investments in technology, innovation
and improvement plans for facilities and
production processes in order to reduce
losses; a circular cycle approach that allows
us to move forward in reusing and making
the consumption of water resources more
efficient; and a collaborative work and
awareness of our employees and the entire
value chain about the importance of caring
for this resource.
• Train and create awareness throughout the
value chain about the care of the resource.
• Monitor our performance through the
water use ratio (the amount needed to
produce one liter of beverage).
2021 PROGRESS
We met our goal by reducing our
consumption. Likewise, we continued with
the growth of returnable and stills products,
which are associated with manufacturing
processes that consume more water than
carbonated beverages.
Coca-Cola Andina's consolidated water use
ratio was 1.77, meeting and improving our
target of 1.81. This represents a 5.1%
improvement compared to 2020.
-16.2%
WATER RATIO
WUR Coca-Cola Andina during
the last 5 years
WATER RATIO PERFROMANCE
WUR Coca-Cola Andina
2.11
2.01
1.96
1.86
1.77
2021 RESULT
WUR: 1.77
2021 TARGET
WUR: 1.81
(WUR = Water Use Ratio)
2017
2018
2019
2020
2021
2030 TARGET
WUR: 1.27
4OURVALUECHAIN1325678910
WATER PRIORITY IN OPERATIONS
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In addition to the consolidated data, there
are significant decreases in the operations
of each country according to their different
production configurations:
GRI: 103-1, 103-2, 103-3, 303-1, 303-2, 303-3
WATER RATIO BY COUNTRY
Argentina
Brazil
Chile
Paraguay
2.33
2.09
1.39
1.39
2.11
1.95
1.81
1.78
Our comprehensive water risk assessment,
together with the periodic studies we
conduct with The Coca-Cola Company on
the vulnerability of water sources at our
facilities, allow us to prioritize the most
water-stressed locations, where we accelerate
our efforts and investments.
WATER PRIORITY
-7.9%
WATER RATIO
WUR COCA-COLA ANDINA
RENCA VS. 2020
"IN TERMS OF WATER USE,
SINCE 2015 WE HAVE BEEN
STEADILY LOWERING OUR
CONSUMPTION. THROUGH
A POWERFUL INVESTMENT
PLAN AND IMPROVED
WATER MANAGEMENT.
CHILE WILL CONTINUE TO
WORK TO REDUCE WATER
CONSUMPTION BY 23%;
GOING FROM A WATER RATIO
OF 1.95 TO A RATIO OF 1.50 BY
THE END OF 2022."
Alejandro Vargas, Operations Manager,
Coca-Cola Andina Chile.
2020
2021
Water priority (water stress >80%)
Others (water stress <80%)
Source: Aqueduct Water Risk Atlas 2021.
4OURVALUECHAIN1325678910
RECYCLE
REPLENISH
ACTIONS
• Treat effluents to return to nature water
that is suitable and safe for animal and
plant life.
• The purpose is to return water in optimal
conditions for the ecosystem.
ACTIONS
• Return the resource used in our beverages
to the community and the environment.
• Initiatives aimed at the conservation of
water in nature, safeguarding subway
aquifers and providing people with access
to safe water.
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2021 Effluent treatment
(% on total)
GRI 303-4
Argentina
96%
4%
Brazil
Chile
100%
10%
90%
Paraguay
100%
756,489
Third-party plants
Own plants
REUSE
GRI:103-1; 103-2, 103-3, 303-1, 303-2,
303-3, 303-5
ACTIONS
• Improve production process technology to
safely reuse water whenever possible.
• The goal is to reuse water as many times as
possible to reduce water use.
Water reuse [m3/year]
2021 PROGRESS
We met our goal of increasing water reuse
by 46.7% over last year. We also continued to
develop and validate processes to increase our
future reuse capacity.
221,342
286,488
515,799
2018
2019
2020
2021
4OURVALUECHAIN1325678910
2021 PROGRESS
GRI:103-1; 103-2, 103-3, 303-1, 303-2, 303-3, 303-5
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Argentina
• River cleanup in Godoy Cruz in Mendoza:
Joint public-private action to clean the
river channel in Mendoza and plant trees.
Brazil
• Water+Access: Project in partnership with
the Coca-Cola Institute to expand access
to drinking and sustainable water in rural
communities in Brazil. It is based on three
pillars: infrastructure for access, community
management model, and integration and
strengthening of the ecosystem. Investment
of 300,000 reales and reached 996 people.
• Water quality monitoring of the
Taquara River.
• River cleanup in the city of Córdoba:
• Live Dia da Árvore: Awareness-raising
Cleanup action, eco trekking, training and
waste awareness in the city's San Martín
nature reserve.
day on vegetation and water conservation
with representatives of environmental
organizations.
• Forest replanting project: In the
permanent preservation areas of the
Taquara River in the vicinity of our
plant in Duque De Caxias, Brazil. The
execution of the project took place over
the last few years where 4,570 trees were
initially planted and during 2021 the last
monitoring and maintenance tasks were
carried out, essential for the success of the
ecological restoration.
Chile
• Innova Agua Fund Project: Initiative
Paraguay
• Access to drinking water in vulnerable
promoted jointly with Coca-Cola de Chile
to implement innovative solutions that
make new water sources available, whereby
4 communities were selected. One of the
projects is located in the territory of our
franchise, specifically in the commune of
Colina.
• Alto Tarapacá Project and Botanical Garden
of Viña Del Mar: Initiative promoted
jointly with Coca-Cola de Chile. In the case
of the Altiplano Iquiqueño, more than 100
hectares of wetlands of local communities
were recovered and in the botanical garden
17,830 plants were cared for and fire
prevention work was carried out on 136
hectares.
communities: This is a project
implemented together with the Moisés
Bertoni Foundation and the National
Environmental Sanitation Service that
seeks to provide access to water to remote
communities. 49,890 people benefited
during 2021 in 90 rural communities and 5
small cities. 35 community drinking water
systems have been built.
• Project with H2O Sonidos de Ñemby
Orchestra: Care of the waterway near the
plant and the Pa'i Ñu stream with young
participants and neighboring schools. 700
young people participated in workshops and
cleaning up the creek.
• Water conservation project in the
Mbaracayú reserve: Water replenishment
project based on sustainable agriculture
in the biosphere of the Mbaracayú forest,
favoring the infiltration of rainwater
into the aquifer in a natural way. 90 new
producers were trained during 2021, which
brings the accumulated total since the
beginning of the project to 252 producers.
360 hectares were intervened with the
construction of 98 planting beds and 5
rainwater collecting systems.
4OURVALUECHAIN1325678910
2021 HIGHLIGHTS
GRI:103-1; 103-2, 103-3, 303-1, 303-2,
303-3, 303-5
At Coca-Cola Andina we have programs to
monitor and reduce water consumption in all
our Operations; we permanently and integrally
use the best technology and the best processes
available to conserve water resources. This is our
commitment and one of our greatest challenges.
MAIN INITIATIVES, ACTIONS
AND GENERAL INVESTMENTS
MADE IN ALL OPERATIONS:
• Training, awareness and incentives to key
teams.
• Improving and increasing efficiency in
water filtering facilities.
UPCOMING PROJECTS:
FEATURED CASES
• Migration to dry lubrication in bottle
• Water use benchmarking at Duque de
conveyor belts.
Caxias Plant
• Equipment investments for dry
• Safe water reuse
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bottle rinser.
• Capture rainwater from roofs.
• Water investment accelerator program
• Water management digitization
• Excellence in effluent treatment
Click here
to view cases
• Adoption of new technologies that replace
• Increased condensate return.
auxiliary water consumption.
• Optimization of water efficiency in
CIP (cleaning in place) processes of
manufacturing lines and equipment.
• Extension of reject water recovery.
• Extension of water reuse in toilets,
cleaning, irrigation and general tasks.
• Optimization of water efficiency in bottle
and returnable cases cleaning processes.
• Extension of water reuse in auxiliary
processes.
• Coca-Cola Andina Chile's own effluent
treatment plant, with technology that will
allow reuse of water for internal surface or
community discharge.
• Implementation of comprehensive total
productive maintenance plans to reduce
deviations and losses.
• Implementation of consumption
monitoring with early warning systems.
• Investments and developments to increase
automation of equipment activation and
control.
• Increase in condensate returns.
• Implementation of water recovery points
in auxiliary process rejects (nanofiltration,
reverse osmosis, pump seals, rinses, etc.).
• Implementation of reuse and recycling
cycles whenever possible.
4OURVALUECHAIN1325678910
Business pillar
VALUE CHAIN
EFFICIENCY AND
PRODUCTIVITY
Material issues
Water management
SUSTAINABLE PACKAGING
Energy management
Supply chain
management
REVIEW THE COMPLETE
MANAGEMENT
APPROACH HERE
"At Coca-Cola Andina we
are a benchmark in sustainable
packaging and we are proud
to lead the returnable
packaging market".
Pablo Bardin, Operations Manager,
Coca-Cola Andina Argentina.
CONTEXT
As a beverage company, we are aware of the
great responsibility we have for the packaging
we use, which is why we have accelerated
initiatives such as reducing the weight of
our bottles, developing returnable bottles
and inclusive recycling programs. We are
a proactive player and are committed to
identifying and applying solutions to reverse
the impact of packaging on the environment.
It is also important to consider that during
2020, Oceana noted in its report Just One
Word: Refillables that a 10% increase in the
use of returnable bottles worldwide could
prevent up to 7 billion PET plastic bottles
from polluting the oceans. Encouraging
the use of returnable bottles is essential to
significantly decrease ocean pollution.
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GRI: 201-2, 301-1, 301-2, 301-3, 306-1,
306-2, 306-3, 306-4, 306-5, 308-2
PACKAGING USE CYCLE
Recovery of post-consumer and
post-industrial containers
Losses
Returnable
containers
Returnability
Packaging
raw material
Packaging design and
beverage manufacturing
Clients
Final disposal
(waste)
Recycled raw
material
Disposable
containers
Post-consumer and post-industrial
packaging recovery
Losses
At Coca-Cola Andina we have implemented post-industrial1 and post-consumer2 packaging
recovery programs in all operations, which, together with our leadership in returnable packaging,
allows us to achieve a high degree of circularity. In addition, for one-way containers, the strategy is
to innovate in design and manufacturing, lightening containers and incorporating recycled material.
1: Includes losses from the industrial process of the plants
and returnable containers that have exhausted their
useful life.
2: Includes market recovery through direct or indirect
collection.
4OURVALUECHAIN1325678910
As part of The Coca-Cola Company
System, we share the commitment and
adhere to the objectives of the World
Without Waste initiative and integrate
them into our strategic management axes.
STRATEGIC AXES OF OUR
PACKAGING MANAGEMENT
REUSE
Maintain our strong position in the
returnable packaging sales mix
RECYCLE
Develop 100% recyclable packaging by
2025 and use at least 50% recycled
material in packaging by 2030
RECOVER
Collect and recycle 100% of our
packaging by 2030
REDUCE
Continue to lighten our bottles
wherever possible
RETURNABILITY
Percentage of Returnable Packaging Sales
Volume over NARTD Volume.
REUSE
GRI: 201-2, 301-1, 301-2, 301-3, 306-1,
306-2, 306-3, 306-4, 306-5, 308-2
Argentina
Awareness of environmental care is growing
day by day. Therefore, more and more
citizens are demanding that packaging be
reusable. Returnable packaging is more
environmentally friendly and consumes fewer
resources than glass and disposable plastic.
We have conducted studies comparing
the main packaging to identify their
environmental impacts at each stage of their
life cycle, considering from raw material,
distribution and recovery, to their final
destination as waste (whether recycled or
not). PET plastic returnable bottles are an
excellent solution because their multiple
uses (more than 12) and their light material,
guarantee a low impact logistics, where the
end of their useful life is inside our plants,
achieving the highest possible circularity.
Returnable bottles are a central element
of Coca-Cola Andina's strategy, being a
world reference in the sales mix of this
packaging over total sales; our challenge
is to maintain this position with projects,
initiatives and investments.
Investment in packaging and cases
(US$ million)
Argentina
Brazil
Chile
2019 2020
2021
6.7
8.6
9.2
7.1
11.9
7.3
16.1
12.5
13.8
Paraguay
2.9
4.0
5.1
Total
Coca-Cola Andina
34.2
32.8
38.0
Brazil
Chile
Paraguay
Total Coca-Cola Andina
40.6%
39.5%
40.3%
47.5%
43.3%
18.0%
20.1%
22.0%
24.2%
21.7%
37.0%
34.7%
33.9%
36.3%
30.5%
38.3%
37.4%
37.5%
40.0%
38.2%
32.1%
31.6%
31.8%
35.1%
31.6%
2017
2018
2019
2020
2021
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REUSE
ACTIONS
Single returnable bottle launches
with individual labeling in PET
and glass materials.
Launches of stills in returnable
containers.
Creation of combined cycles for the
direct or indirect recovery of post-
industrial and post-consumer returnable
PET containers.
2021 PROGRESS
We achieved our goal of becoming leaders
in returnable packaging. We also continued
to launch new products in returnable
bottles (stills).
This boosts the efficiency of the collection,
cleaning and filling process, offering several
brands in the same returnable bottle with a
single color, shape and size.
The consolidated percentage of returnable
Coca-Cola Andina was 31.6% over NARTD
with associated investments in containers
and cases of US$ 38 million.
4OURVALUECHAIN1325678910
CASE STUDY: INNOVATION AND
ECO-DESIGN OF THE SINGLE-SERVE
RETURNABLE BOTTLE
GRI: 201-2, 301-1, 301-2, 301-3, 306-1, 306-2,
306-3, 306-4, 306-5, 308-2
Returnable packaging is a key element of our
sustainable packaging strategy; it is associated
with affordability, building consumer
loyalty, reducing costs, adapting to needs
and attracting environmentally conscious
consumers. They are also linked to our
objectives of waste reduction through reduced
environmental impact, collaborative work
with stakeholders and the promotion of the
circular economy.
The universal bottle concept is born from an
optimized packaging design with a focus on
circular sustainability. It was initially launched
in PET returnable bottles and we are currently
extending it to glass returnable bottles,
allowing the same bottle, with a different label,
to be filled with different products.
ECO DESIGN OF RETURNABLE PACKAGING
. Customer focus
. Ease of use
. Multiple uses
. Permanent interchangeability between products
. Suitable for packaging lightweighting
. Suitable for use of recycled material in packaging
ADVANTAGES RETURNABLE CONTAINERS
. Contribute to the care of the environment
. Reduce the environmental footprint of packaging
. Promote circular consumption cycles
. Give flexibility to the consumer .
. Allow storage efficiencies, distribution and
reverse logistics
COCA-COLA ANDINA PROGRESS
NEXT STEPS
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Single returnable REF PET
plastic bottle
Single returnable glass
bottle RGB
Packaging lightweighting
Sparkling
REF PET
Stills
REF PET
Sparkling
Glass RGB
Stills
Glass RGB
Increase recycled
material content
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RECYCLE AND RECOVER
GRI: 201-2, 301-1, 301-2, 301-3, 306-1,
306-2, 306-3, 306-4, 306-5, 308-2
Our goal is to create systems to maximize the
value of materials and products and prevent
them from becoming waste, through reuse,
recycling and recovery.
Replacing virgin resin with recycled resin
implies the development of the chain of
recyclers, suppliers and agreements for
competitive prices; therefore, we develop
scale solutions with alliances that allow for
progressive collective action.
As members of the Coca-Cola System, we
encourage the recycling of our containers,
increasing the percentage of recycled resin
in our plastic containers, which subsequently
enhances their recovery for their correct
transformation into food-grade recycled resin.
As a result of our efforts, we have increased
the amount of recycled material in
packaging. In Argentina and Brazil, we have
already incorporated recycled PET PCR
resin and we project to incorporate recycled
resin in the remaining operations.
The following actions stand out:
Paresa: Created a joint venture with Coresa and
Inpet, which will produce recycled resin starting
in 2022, which will be incorporated in our
bottles during 2022.
Coca-Cola Andina Chile: Partnered with
Embonor S.A. to build a PET PCR plant that
will provide recycled resin by 2024.
Recycled resin (%)
Post-consumption recovery (%)
Total Coca-Cola Andina
Total Coca-Cola Andina
10.1%
7.9%
14.8%
10.9%
2020
2021
2020
2021
Argentina
Argentina
7.0%
6.2%
8.6%
4.3%
2020
2021
2020
2021
Brazil
Brazil
21.4%
15.3%
32.5%
22.5%
2020
2021
2020
2021
Chile
Chile
CMF AGREEMENT TO MAKE
PCR PET RESIN AVAILABLE
IN THE FUTURE
Paraguay
Paraguay
JOINT VENTURE WITH
CORESA + INPET TO MAKE
RESIN AVAILABLE 2022
1.1%
0.8%
2020
2021
0.8%
0.7%
2020
2021
4OURVALUECHAIN1325678910
"WE ARE INCREASING THE USE
OF RECYCLED PET RESIN AT A
FAST PACE. IN 2021, WE APPROVED
TOGETHER WITH COCA-COLA
COMPANY THE USE OF 100%
RECYCLED GREEN PET IN GREEN
BOTTLES FOR THE ENTIRE
PORTFOLIO MANUFACTURED IN
RIO DE JANEIRO."
Guilherme Magalhães, Engineer
Coca-Cola Andina Brazil.
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Brazil
RECYCLE
RECOVER
ACTIONS
Increase participation of recycled
PET resin in packaging in operations
in Argentina and Brazil.
Develop partnerships for the
availability of recycled resin in
operations in Chile and Paraguay.
Cristal 0.50L 100%
RECYCED PET
Coca-Cola 2.0L 50%
RECYCLED PET
Green bottles 100%
RECYCLED PET1
Launch containers with 20%, 50% and
100% recycled PET.
Argentina
2021 PROGRESS
We met our goal by increasing the use
of recycled PET resin compared to last
year, achieving a total Andina 2021
value of 10.1%.
We also continue to develop and
validate processes to increase our
future recycling and recovery capacity.
Sparkling beverages 20% RECYCLED PET2
1 Eco-design project: Modifying label for flavors, increasing recycled content and modifying the shade of green
color to increase recyclability with other products in the market.
2 Partial impact during 2021 due to lack of availability of RECYCLED PET in Argentina.
ACTIONS
Develop strategic alliances to recover
post-consumer PET from the market
and transform it back into bottles.
Creation of post-industrial PET
recovery cycles.
Implementation of inclusive recycling
programs.
Develop key alliances in the value
chain for collection and recycling.
2021 PROGRESS
Our efforts are focused on encouraging
our consumers to recycle packaging and
increasing our recovery rates in cooperation
with authorized partners.
We met our goal by increasing post-
consumer recovery over last year, achieving a
total Andina 2021 value of 14.8%.
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4OURVALUECHAIN1325678910
MAIN 2021 PROGRESS PRIMARY PACKAGING
GRI: 301-1, 301-2, 301-3
Argentina
REDUCE
As part of the strategy to make packaging
more sustainable, we have actions to minimize
the use of materials. Innovation and the
incorporation of new technologies allow us
to move forward with lighter packaging that
undergoes functionality tests throughout its
life cycle to guarantee the same performance
with reduced material use. Reduction is
especially important for disposable materials.
"WE ARE VERY PLEASED TO
HAVE ALL MINERAL WATER
PREFORMS FROM THE DUQUE
DE CAXIAS PLANT AS A
LIGHTWEIGHT REFERENCE IN
BRAZIL, IN PARTICULAR THE
NEW 10.5G PREFORM WITH 100%
RECYCLED RESIN IN 500 ML."
Rodrigo Tavares, Industrial Coordinator
DQX Coca-Cola Andina Brazil plant.
Coca-Cola sin azúcar 1.00L
-12.9% PET weight
Coca-Cola 1.50L
Coca-Cola sin azúcar 1.50L
Sprite 1.50L
-11.3% PET weight
Brazil
Coca-Cola sin azúcar 2.25L
-15.5% PET weight
Aquarius 2.25L sabores
-9.4% PET weight
Hotfill
Coldfill
Change to
BOPP label
Cepita Del Valle 1.00L
-17.7% PET weight
Powerade 0.50L
-24.3% PET weight
Cristal 0.50L
-12.5% PET weight
Cristal 0.50L con gas
-24.3% PET weight
Cristal 1.50L
-17.7% PET weight
Cristal 1.50L con gas
-10.7% PET weight
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PET Savings
Chile
2018 2019 2020 2021
1,345 445
413
482
1,737,476 712,037 488,535 732,838
Total tons
saved
Total US$
saved
Benedictino sabores 1.50L
-16.5% PET weight
Aquarius 1.60L sabores
-4.9% PET weight
At the consolidated level, during 2021, efforts to reduce packaging resulted in PET resin savings of 482 tons per year, which meant a
reduction in emissions and savings of US$ 732,838
4OURVALUECHAIN1325678910
We extend packaging improvement studies
to secondary and tertiary packaging, mainly
focused on reducing the use of polyethylene
in shrink and stretch film.
Polyethylene savings
Total tons
saved
2021
142
2021 PRINCIPAL PROGRESS
SECONDARYPACKAGING
In 2021 we expanded our efforts
to secondary packaging, achieving
important advances.
Argentina
"APPLYING PACKAGING
LIGHTWEIGHTING
REQUIRES CONDUCTING
TESTS AND VALIDATING
PROTOCOLS TO ACHIEVE
THE BEST RESULTS AND
AN OPTIMAL PACKAGE; IT
IS UNDOUBTEDLY A GREAT
CHALLENGE THAT WE TAKE
ON WITH THE GREATEST
COMMITMENT".
Reduction of shrink wrap
thicknesses in sparkling beverages
up to -17.0% PE weight.
Ada de los Ángeles González Monasterio,
Packaging Engineer,
Coca-Cola Andina Chile
Argentina + Chile
Reduction of film
stretch thickness
At the consolidated level, during 2021,
efforts to reduce secondary and tertiary
packaging led to an annual savings of
142 tons of polyethylene plastic per year.
CLEAN PRODUCTION
AGREEMENTS CERTIFICATION
Coca-Cola Andina Chile achieved the
Clean Production Agreements certification,
which is granted by the Chilean Ministry
of the Environment. These certificates
were achieved after a process of
application, planning, execution, audits
and implementation of circular economy
practices that validate our management and
results in terms of reduction, segregation and
recycling of waste1.
1: In our center operations, it includes the Renca plant
and the Renca, Carlos Valdovinos, Puente Alto and
Maipú distribution centers.
WASTE GENERATION
GRI: 306-1, 306-3, 306-5
Our production processes generate waste that is managed within the plants and monitored through
indicators of solid waste generation per liter of beverage produced and the percentage of solid waste
recycling. The focus is on reducing generation and recycling what is generated.
Solid waste generation (gr of solid waste / liter of beverage produced)
13.9
13.0
7.8
7.9
13.0
13.9
18.1
18.1
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2020
2021
2020
2021
2020
2021
2020
2021
Recycling of solid waste (% of total)
92%
92%
90%
88%
90%
92%
94%
92%
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
4OURVALUECHAIN1325678910
Business pillar
VALUE CHAIN
EFFICIENCY AND
PRODUCTIVITY
Material issues
GRI: 103-1, 103-2, 103-3, 302-1, 302-2,
302-3, 302-4; 302-5, 303-3
The efficient use of energy is our
responsibility; it not only generates
economic benefits for the Company, but
also for the community in general, since it
makes available a scarce resource of public
good. All our stakeholders have expressed
their concern regarding the responsible
use of this resource and the active
protection against climate change.
At Coca-Cola Andina we are committed to
growing in our activities in harmony with the
environment, being proactive and innovative.
As we expand the offer of new product
categories and increase sales in returnable
bottles, the processes require more energy
consumption. The challenge lies in increasing
the share of renewable energy, and reducing
energy consumption rates while implementing
the "A Total Beverage Company" strategy.
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Water Management
Sustainable packaging
ENERGY IN OUR VALUE CHAIN
SCOPE 3
SCOPE 1 + SCOPE 2
SCOPE 1 + SCOPE 3
SCOPE 3
ENERGY MANAGEMENT
GEI
Measurement
Supply Chain
Management
Ingredients, supplies and
packaging
Manufacturing and
production plants
Logistics and distribution
Cold equipment
Grid electricity1
Grid electricity1
Fossil fuels1
Grid electricity1
REVIEW COMPLETE
MANAGEMENT FOCUS HERE
Fossil fuels1
Fossil fuels1
"Energy is one of the
cornerstones for the sustainable
development of our operations,
the energy transition to
renewable sources presents
new opportunities and we are
actively working to capture
and integrate these benefits
into our value chain."
Rodrigo Klee, Operations Manager,
Coca-Cola Andina Brazil.
Renewable electricity2
Biogas3
Biomass
Sugar/liter sold ratio
Energy ratio (EUR)
% fleet optimized fuel
Cold equipment efficiency
Container returnability
% renewable energy
Principal
action axes
Use of virgin and recycled
PET resin
Packaging lightweighting
Direct energy consumption
1 % renewable according to the matrix of each country.
2 Private-to-private contract.
3 Self-generated
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To manage this material issue, we are working
on improvements in production processes,
in our customers' cold equipment and in
the distribution of products, introducing
innovations through technology and the
digitization of processes.
Direct Consumption (Scope 1 + Scope 2)
Direct energy consumption includes: the
production plants, the storage process and
the distribution of the company's own fleet.
Indirect consumption (Scope 3)
Our indirect consumption is in the third-
parties' fleet distribution processes, which
mainly consume liquid fuels; in the cold
equipment owned by the Company, but
which consumes electric energy in our
customers; and in the raw materials and
inputs contained in our products.
Understanding energy consumption
throughout our value chain allows us to
determine the main lines of action to
be managed.
In 2020, the Coca-Cola system, aware of the
global problem of climate change, proposed
to reduce the carbon footprint of the entire
value chain (from ingredients to the final
consumer), establishing the goal of reducing
absolute GHG emissions of scopes 1, 2 and
3 by 25% by 2030 compared to the base year
2015. At Coca-Cola Andina, we are convinced
that we will be able to meet these challenges
through the multiple targets we have set for
the year 2030: reduction of the energy ratio in
our plants, reduction of sugar in our products,
increase the share of returnable packaging in
the sales volume, increase in recycled resin
and packaging lightweighting, renewal of the
fleet of trucks and cooling equipment to more
efficient ones.
SHARE OF EMISSIONS: GREENHOUSE
GASES IN THE COCA-COLA SYSTEM
STRATEGIC AXES OF OUR
ENERGY MANAGEMENT
Our management approach considers
three strategic axes: within our production
processes, continuing to improve efficiency
while transforming the energy matrix towards
renewable sources where possible; and
consolidating good practices in all operations,
challenging limits in search of new
opportunities in order to reduce greenhouse
gas emissions. Outside our production plants,
also managing greenhouse gas emissions
(scope 3), monitoring the impact of each
component, prioritizing and managing the
most important ones.
INGREDIENTS
20% - 25%
PACKAGING
25% - 30%
MANUFACTURING
10% - 15%
DISTRIBUTION
5% - 15%
COLD EQUIPMENT
30% - 35%
Note 1 Source: The Coca-Cola Company
Note 2 Estimated values 2020
Increase
energy efficiency
Growth of renewable
energy sources
Emissions
reduction
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In addition to the consolidated data, there
are significant decreases in the operations
of each country according to their different
production configurations:
Energy ratio by country
GRI:103-1, 103-2, 103-3, 302-1, 302-2, 302-3,
303-3, 302-4, 302-5
Argentina
Increasing energy efficiency
We monitor our performance through our
energy ratio, which is the amount of energy
required (including all sources) to produce
and store one liter of beverage; in 2021,
Coca-Cola Andina's consolidated energy
ratio was 0.301 MJ/liter of beverage, meeting
our target of 0.309. This represents an
improvement of -2.6% compared to 2020.
-6.9%
ENERGY RATIO
(EUR [MJ/liter of beverage] Coca-
Cola Andina during
the last 5 years)
-5.3%
Brazil
Energy ratio performance
EUR Coca-Cola Andina
0.334
0.324
0.323
0.309
+1.5%
0.301
Chile
2017
2018
2019
2020
2021
2021 RESULT
EUR: 0.301
2021 TARGET
EUR: 0.309
-8.7%
Paraguay
+1.8%
2030 TARGET
EUR: 0.255
2020
2021
0.359
0.339
0.271
0.275
0.253
0.231
0.470
0.479
Growth in renewable energy sources
Coca-Cola Andina's commitment to the
environment is expressed in the rational use
of natural resources. We are also aware that
the origin of energy is important for climate
protection; in those countries where there
are possibilities of obtaining energy from
renewable sources, we make an effort to
acquire an increasing proportion of it.
41%
RENEWABLE ENERGY
(Share of renewable energy
Coca-Cola Andina in EUR).
Increased share of
renewable energy
[Renewable energy consumed /
total energy consumed EUR]
41%
16%
2017
2021
The two main bottling plants in Chile
have certified clean energy contracts; in
Brazil, our Duque de Caxias and Ribeirão
Preto plants have certified clean energy
contracts; in our Paraguay operation
we consume electricity from renewable
sources (hydroelectric plants) and energy
from boilers that use biomass (organic
material that we recover from the waste
of another industry); in Argentina, boilers
have the possibility of consuming biogas
generated in our effluent treatment plant.
4OURVALUECHAIN1325678910
Emissions reduction
GRI: 103-1, 103-2, 103-3, 302-1, 302-2,
302-3, 302-4, 302-5, 303-3, 305-1, 305-2,
305-3, 305-4, 305-5
In 2021 we continued the work started in
2020 together with the company Circular
Carbón; we comprehensively determined
the environmental impact of our operations,
quantifying the organizational carbon
footprint for the headquarters in Argentina,
Brazil, Chile and Paraguay, using the ISO
14.064-1 standard and the GHG Protocol:
Corporate Accounting and Reporting
Standard (GHG) published by the World
Resources Institute and the World Business
Council for Sustainable Development.
Coca-Cola Andina's consolidated footprint
was 995,166 TnCO2eq for 2021.
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-17%
EMISSIONS RATIO
(Emissions CO2 eq/liter of
beverage produced at Coca-Cola
Andina in the last year scope 1+2).
-25%
TOTAL EMISSIONS
(Total CO2 eq emissions at
Coca-Cola Andina in the last year).
Carbon footprint emissions [TnCO2eq/year]
2020
2021
Difference
Scope 1
Scope 2
Scope 3
63,140
57,393
61,249
52,224
1,209,799
885,550
Total Coca-Cola Andina
1,334,188
995,166
-9%
-15%
-27%
-25%
Carbon footprint emissions ratio
[grCO2eq/liter of beverage produced]
Scope 1+2
Scope 1+2+3
2020
2021
Difference
34,47
28,67
369,69
260.32
-17%
-30%
Definition of scopes
• Scope 1: Direct greenhouse gas emissions
originating from sources owned or
controlled by the Company (stationary
combustion, mobile combustion and
fugitive emissions).
• Scope 2: Indirect greenhouse gas emissions
associated with electricity consumption.
• Scope 3: These are defined as products
and services acquired by the organization,
which in turn will have previously generated
emissions in order to be produced; they are
associated with materials, ingredients, inputs
and outsourced services.
Partner:
4OURVALUECHAIN1325678910
PRIORITIZATION BY IMPACT
GRI:103-1, 103-2, 103-3, 302-1, 302-2, 302-3,
303-3, 302-4, 302-5, 305-1, 305-2, 305-3,
305-4, 305-5
The carbon footprint is a key tool for
decision making. In this sense, we
conducted an analysis of the main
contributors to establish improvement
plans in the perspective of measuring,
reducing and offsetting. Among the
main conclusions we can highlight
that currently most of the emissions
correspond to Scope 3 with the following
emissions ranking:
Sugar (Scope 3)
Disposable PET containers (Scope 3)
Cold equipment electric power (Scope 3)
Internal and external distribution and logistics (Scope 1 + Scope 3)
Electric power at production plants (Scope 2)
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542,473 TN CO2 EQ
359,472 TN CO2 EQ
199,317 TN CO2 EQ
240,998 TN CO2 EQ
187,148 TN CO2 EQ
196,574 TN CO2 EQ
75,962 TN CO2 EQ
100,377 TN CO2 EQ
61,249 TN CO2 EQ
53,512 TN CO2 EQ
-34%
+21%
+5%
+32%
-13%
2020
2021
Variation 2021 vs 2020
Action Plans
Emissions from sugars: The main focus is
to continue with our sugar reduction strategy
mentioned in Chapter 3 and represented by
the indicators of percentage of beverages low
or reduced in sugar and kcal/liter sold. Link
Emissions from disposable PET containers:
To reduce this impact, our main lines of
action in the coming years will focus on
continuing to increase and lead the share of
returnable containers in our sales, increasing
the percentage of recycled post-consumer PET
in disposable containers and continuing to
lighten bottles where possible. Link.
Life cycle analysis: During 2021, together with
the company Circular Carbon, we conducted
a life cycle analysis (LCA) of our most
representative returnable and disposable PET
packaging for our operations in Argentina,
Brazil, Chile and Paraguay; as a result we
reaffirmed that PET returnable packaging has
a better environmental profile than disposable
packaging. The LCA is a methodological tool
Returnable
PET
packaging
-22%
emissions
CO2eq
Disposable
PET
packaging
(based on ISO 14.040- 44:2012 standards)
used to measure the environmental impact
of a product, process or system throughout
its life cycle (from the time the raw materials
are obtained until its end of life). It is based
on the collection and analysis of all inputs
and outputs of each of the production
processes of the system and the quantitative
assessment of potential environmental
impacts in various impact categories, with
the aim of establishing impact reduction
strategies and improving sustainability.
Note: 2020-based assessment.
"PET RETURNABLE
CONTAINERS ARE THE MOST
CIRCULAR CONTAINERS
ON THE MARKET TODAY:
OUR SINGLE BOTTLE AND
INDIVIDUAL LABELLING
DEVELOPMENTS, COMBINED
WITH RETURNABILITY
LEADERSHIP, ALLOW US TO
DECREASE OUR USE
OF PLASTICS ON A
LARGE SCALE.”
Pablo Bardin, Operations Manager,
Coca-Cola Andina Argentina
4OURVALUECHAIN1325678910
Emissions from electrical energy from cold equipment:
GRI:103-1, 103-2, 103-3, 302-1, 302-2, 302-3, 303-3, 302-4, 302-5
The main focus is to increase the efficiency of cold equipment, reducing its electricity
consumption, migrating to more efficient equipment, and researching new options for alternative
energy supply. In this regard, most of our equipment is of the highest technology available due
to ongoing investments in the renewal of more efficient equipment with electronic controllers,
better-performing refrigerant gases, high-tech cold chambers and LED lighting.
2021 Cold
equipment
Amount
[units]
Electronic controller + LED equipment*
298,396
Electronic controller only equipment*
LED only equipment
Others
Total Coca-Cola Andina
* Energy saving equipment
Energy
efficiency
%
77%
3%
11%
9%
12,166
41,036
34,005
385,603
100%
• Migration to LED lighting.
• Implementation of comprehensive total
productive maintenance plans to reduce
deviations and losses. Training, awareness
and incentives to key teams.
• Implementation of early warning systems.
COMPENSATION: NATIVE TREES
GRI: 304-3
Upcoming projects:
We highlight our reforestation project for the
permanent preservation areas of the Taquara
River in the vicinity of our plant in Duque de
Caxias, Brazil. The execution of the project
took place over the last few years; 4,570 trees
were initially planted and during 2021 the last
monitoring and maintenance tasks essential
for the success of the ecological restoration
were carried out (specialists recommend a four-
year follow-up until the full establishment of
the species).
• Start-stop automation of production lines.
• New investments in low-pressure molding.
• New equipment and technology of greater
energy efficiency.
• Replacement of LPG forklifts for
electric ones.
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Cold equipment
Cold equipment with energy savings
2018
61%
2019
79%
2020
2021
91%
91%
Emissions from distribution and fleet logistics: We have a route-to-market (RTM) control 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 our own and third-party vehicle fleets is also a permanent challenge,
migrating to Euro V engine technology. Today the Company has 58% of its fleet with
Euro V technology or higher.
Truck types [units]
Emission standard Euro V or higher
Others
Total Coca-Cola Andina
2019
1,227
1,602
2,829
2020
1,233
1,591
2,824
2021
1,616
1,173
2,789
2021 HIGHLIGHTS
Main initiatives, actions and investments
in 2021, general to all operations, aimed
at reducing energy use:
• Automation of consumption points to
reduce the use of compressed air for service.
• Optimization of blowing process to
reduce high pressure air consumption and
modulation of compressors according to
instantaneous demand. Includes investment
in ultra-low pressure molding bottoms and
air recovery systems.
• Programs to increase filling temperature at
the same carbonation performance.
Emissions from electricity consumption at plants: The focus is on reducing consumption
(measured by EUR indicator) and simultaneously increase the share of renewable energy
within the energy consumed.
• Reduction of secondary packaging
shrinkage temperature.
FEATURED CASES
• Sustainable mobility, electric forklifts
• Case study: solar-powered coolers
Argentina
• Biomass energy use
To view cases
click here
4OURVALUECHAIN1325678910
Business pillar
VALUE CHAIN
EFFICIENCY AND
PRODUCTIVITY
Material issues
Water Management
Sustainable packaging
Energy Management
SUPPLY CHAIN
MANAGEMENT
REVIEW COMPLETE
MANAGEMENT FOCUS HERE
GRI: 412-1, 412-2, 412-3, 414-1, 414-2,
308-1, 308-2, 407-1, 408-1
WORK FRAMEWORK
At Coca-Cola Andina we seek sustainable
consumption and production modalities by
improving our value chain within a working
framework with the following pillars:
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OUR APPROACH TO SUPPLY
CHAIN MANAGEMENT
Supplier management begins with a
categorization strategy that takes into
account their financial impact within the
supply chain, their strengths and business
risks. All suppliers are analyzed using the
following criteria:
Supply chain
expense analysis.
Supply chain
criticality.
Supply chain risk assessment and
corrective actions.
Integration of environmental, social
and governance issues.
Once the categorization is completed, we
continue with the qualification of suppliers.
To this end, aspects are evaluated so
that they are aligned with the company's
principles, specifically in relation to the
safety of people, the environment and
operational continuity. For each of these
dimensions, pre-established criteria are
used to conclude the level of each one
of them. Prioritization is fundamental to
advance with the management strategy and
efficiently allocate control and evaluation
resources.
SUPPLY CHAIN PILLARS
Code of Ethics
for Suppliers and
Third Parties
Corporate Policy
on Human Rights
The Coca-Cola
Company Guiding
Principles for
Suppliers
We foster ethical and transparent
relationships based on the guidelines
developed by The Coca-Cola Company:
Guiding Principles for Suppliers. Compliance
with human rights is the basis for establishing
a relationship with our suppliers, and
they must also comply with the laws and
regulations that apply to them.
Coca-Cola Andina applies the Code of Ethics
for Suppliers and Third Parties, which frames
the principles of conduct that they must
comply with, as well as the Corporate Policy
on Human Rights, expressing the Company's
responsibility in the prevention of associated
conflicts. In addition, we have a whistleblower
reporting site that allows anyone to contact us
to expose a breach of our corporate policies.
4OURVALUECHAIN1325678910
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RISK ASSESSMENT
Coca-Cola Andina conducts a risk
assessment in the supply chain through a
series of systematic controls for suppliers
that safeguard the "Guiding Principles
for Suppliers" required by The Coca-Cola
Company. These are increased as the level of
criticality rises. There are four main controls
or processes in terms of risk management
and identification:
General Control: It is an automatic control of
compliance with labor obligations.
Specific Digital Control: Corresponds to
random and specific reviews of companies
defined as critical, in these reviews additional
information is requested that must be
submitted digitally by each contractor.
On-site audit: For companies with the highest
criticality ratings, on-site audits are conducted
at the supplier's offices to physically verify
compliance with the guiding principles.
External audit: Every two years, an
external company is contracted to review
compliance with the Guiding Principles,
using random samples for the entire
population of critical companies.
PRINCIPAL METRICS
GRI: 102-9, 414-1, 414-2, 308-1, 308-2,
407-1, 408-1
Management follow-up and monitoring is
based on the following indicators.
Number of suppliers
8,323
Number of
suppliers evaluated
1,371
Number of
critical suppliers
407
% of domestic suppliers
96.1%
99.5%
92.0%
90.0%
% of spending on domestic suppliers
95.4%
98.7%
98.8%
58.0%
WE SEEK TO PURCHASE FROM LOCAL
SUPPLIERS IN ORDER TO PROMOTE REGIONAL
DEVELOPMENT, GENERATE INTEGRATION
WITH THE SUPPLY CHAIN, REDUCE DELIVERY
TIME AND ASSOCIATED RISKS.
To see the featured case,
KOARIBA Project, click here.
4OURVALUECHAIN1325678910
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5
Flexibility and Commitment
5FLEXIBILITY AND COMMITMENT1326478910
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Business pillar
FLEXIBILITY AND
COMMITMENT
Material issues
TALENT AND DIVERSITY
Community outreach
REVIEW THE COMPLETE
MANAGEMENT
APPROACH HERE
We aspire to build an agile
company, enhancing the
flexibility and commitment
of our employees, promoting
diversity and inclusion, and
fostering talent development;
convinced that labor well-being
is essential for the success of the
Company and society".
Gonzalo Muñoz, Human Resources
Manager, Coca-Cola Andina
At Coca-Cola Andina we are a team
composed of more than 18,636 collaborators.
The key elements of our strategy that allow
us to achieve our objectives are:
PURPOSE
LEADERSHIP
CAPABILITIES
DIVERSITY AND INCLUSION
HEALTH AND SAFETY
COMMON PURPOSE AND
RESPECT FOR HUMAN RIGHTS
GRI: 407-1
We connect at all organizational levels
through a common vision and respect for
human rights:
• Purpose: Commitment to sustainable
growth, where customers and consumers
are at the center of our decisions, adapting
ourselves to maintain leadership, exceeding
the expectations of customers, consumers
and society.
• Coca-Cola Andina's Human Rights
Vision: Coca-Cola Andina's Human Rights
Policy is guided by the international
human rights principles included in the
Universal Declaration of Human Rights,
the Declaration of the International Labor
Organization on Fundamental Principles
and Rights at Work, the United Nations
Global Compact and the United Nations
Guiding Principles on Business and
Human Rights. This is also the framework
for our Corporate Policy on
Non-Discrimination and Harassment,
Respect for People, Diversity and Inclusion.
This connection is supported by a
communication strategy that enables
collaborators to use participation channels
to develop their potential and express their
ideas and concerns, and in the permanent
monitoring of the work environment.
5FLEXIBILITY AND COMMITMENT1326478910
COMMUNICATIONS MANAGEMENT
In 2021, we developed a set of initiatives
around the following strategic themes.
New communication tool
"Microsoft Kaizala", reached 51.3% adherence
in 2021.
"75 Years the Value of our History
Campaign": In the framework of
commemorating the 75th anniversary of Coca-
Cola Andina, we conducted a campaign in order
to showcase the stories of our collaborators over
the years, present the history of our leaders and
unite Andina in a single event.
Diversity and Inclusion: We designed an
internal communication plan focused on
promoting inclusion and diverse teams through
messages, videos, lectures and programs.
Dissemination of the Code of Ethics:
Committed to Integrity as a value, in all
operations we conducted campaigns through
mailing, graphics and the Kaizala application to
talk about the Code of Ethics, its importance,
our commitment as an institution and
whistleblowing channels.
Campaigns related to working from home
and a safe return to the office.
ORGANIZATIONAL CLIMATE
At Coca-Cola Andina we measure the
commitment of our collaborators through
a Labor Effectiveness survey, reporting its
results and plans periodically in the Board
of Directors' committees. Aware of the
dynamism of Coca-Cola Andina, and the
need to continue assuring our talents with
an organizational climate aligned with
their expectations, this 2021 we left behind
our biannual Climate survey. We sealed a
new alliance with Gallup Consulting and
implemented a new climate management
model based on more frequent surveys and
quicker questionnaires, streamlining access
to the climate of our teams, communication
and decision making. Thus, in the first four
months of 2022, we will survey 100% of
our Andina collaborators. Likewise, during
2021 we continued to conduct the "Pulse
Survey", aimed mainly at those who perform
their tasks in "Work from home" mode, in
order to remain close and learn about their
perception of the remote work scenario and
their experience of returning to the offices,
which allowed us to map opportunities
for improvement and outline action plans
aimed at improving the work environment
and the satisfaction of our collaborators.
Some results of this survey and
initiatives implemented:
More than 80% of our employees value the
hybrid modality and affirm that it favors
the work climate.
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73% of respondents said that their
productivity had increased and 94% said
they were fully adapted to working from
home. Initiatives to improve the
well-being of collaborators:
We achieved a 96% preference for hybrid
work among our talented individuals.
We reformulated our leadership training
program to better meet the challenges of
new ways of working.
. Amor de Mãe Program: Follow-up during
pregnancy.
. Sempre Bem program: Follow-up of
collaborators with chronic illnesses.
. Viva Leve program: Nutritional follow-up.
. Acolher Program: Oriented to collaborators
with emotional disorders.
We conducted the first Pulse Survey with
the Commercial and Human Resources
sector. The main initiative implemented
to improve the work environment was
the inauguration of a new dining room, a
space designed for collaborators to share
moments and get together.
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SUCCESSION PLAN
2016
LEADERSHIP, TALENT
MANAGEMENT AND SUCCESSION
11.0%
17.0%
CAPABILITIES AND PERFORMANCE
GRI: 404-2
People constitute one of our basic pillars
for Coca-Cola Andina and are a factor for
future success. We need leaders with a
mindset of growth and agility, empowered
and inclusive. The Talent and Succession
Management Program seeks to establish a
systemic and sustained process to identify
and develop successors, ensuring the
continuous development of the Company's
strategy and the operational continuity
of the business. This effort also involves
attracting, retaining and developing talent,
providing them with knowledge and
promoting intellectual capital.
The main attraction tools were
participation in job fairs of the main
universities, posting vacancies on the
relevant platforms of each operation,
enhancing our LinkedIn page, improving
the dynamics of induction of new
employees, among others.
72.0%
2021
36.0%
TRAINING AND
DEVELOPMENT ACTIVITIES
At Coca-Cola Andina we focus on developing
organizational capabilities that allow our
collaborators to expand their knowledge and
master multiple processes, thus increasing
shared opportunities for participation in
different areas of the Company and fostering
internal mobility.
43.41%
Number of vacancies filled with our
own staff in 2021
In this process, we highlight the capabilities
to transform ourselves into a digital
organization in a world where technology,
data and artificial intelligence are redefining
productivity and customer connection
paradigms. In line with this, we developed
and increased our own digital training offer
for the training of our collaborators.
Regarding the Talent and Succession
Management Strategy, since its
implementation in 2016, it 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 to ensure the continuity of the
business in the future.
64.0%
US$ 59
Average training expense per
Covered
positions
Moderately
covered
With
continuity
risk
collaborator
27.3
18.5
19.8
Average
training hours
for women
Average
training hours
for men
Average training
hours per
employee
Note: Calculations based on own staffing.
5FLEXIBILITY AND COMMITMENT1326478910
PERFORMANCE MANAGEMENT
With our performance management
program, we align people's efforts with the
organization's goals. We have established
a culture of feedback between the leader
and each member of his or her team on
their current performance and future
development. This management reaches
almost all of the Company's collaborators
who have roles in the operation and support,
applying different modalities according to
the specific characteristics of the function,
its relationship with the role of contribution
to the business (operational, tactical and
strategic) and the level of leadership that the
collaborator holds.
Percentage of collaborators with
performance evaluation
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Success story (Coca-Cola Andina Brazil)
POWER BI technical training:
we trained more than 200 collaborators in
the use of the POWER BI platform in order
to provide tools for their daily work in their
different functions.
Highlighted Initiatives
The "Manufacturing School" program
increases our operational capabilities by
improving the knowledge and skills matrix of
our collaborators. It is based on pillars such as:
. Consolidation of real On The Job Training.
. Formalization of internal expert instructors.
. Generation of effective solutions for
operational problems.
. Increasing efficiency standards.
Argentina
Brazil
Chile
Paraguay
Note: based on own staffing.
96%
100%
98%
89%
COMPENSATION AND BENEFITS
Coca-Cola Andina is committed to offering
total compensation to attract and retain
talented and skilled collaborators for all its
job positions. A competitive compensation
package includes an effective salary
management program and a comprehensive
benefits program, both of which focus on:
. Promote equal opportunity consistent with
market benchmark labor pools for positions
that require equal skills and responsibilities.
. Maintain consistency between job
classifications and employability to ensure
coherent treatment among the different
jobs and positions in the organization.
. Recognize individual contribution so that
the best performing workers obtain, within
the policy, a higher compensation.
. Provide compensation management through
planning and control of salary costs.
The compensation and benefits offered
by Coca-Cola Andina contemplate what is
required by labor legislation in each of the
countries in which we operate, but year after
year the areas strive to go even further.
Argentina
. Business school, logistics,
manufacturing technology and human
resources school
. Executive Training Program
. Excel and PowerBI Academy
. E-learning platform training
Brazil
. Technical training in industrial
maintenance
. SAP FIORI technical training
. PowerBI technical training
. Agile Leadership Training
. E-learning platform training
Chile
. Protagonists program
. Growth behaviors program
. Academia Andina Program
Paraguay
. Junto para algo mejor (Together for
something better) program
.School of leaders
.Destape program
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ADDITIONAL BENEFITS
GRI: 401-2
100%
of operations
75%
of operations
50%
of operations
25%
of operations
. Medical assistance or insurance
. Life insurance in addition to the
mandatory life insurance
. Conferences, workshops and
lectures of interest
. Sports and recreation programs
for workers
. Preventive vaccination programs
. Discount agreements with health
care facilities, food or pharmacies
. Maternity and paternity leave in
excess of legal requirements
. Dental plan
. Food re-education programs .
. On-site nutritionist
. Discounts on educational
programs for employees
. Leaves of absence for study
exams in excess of the legal
requirements
. Leave of absence above legal
requirements
. Work from home and flexible
schedules for positions that allow
this work scheme
. Special incentives
. Paid vacation leave with vacation
bonus
. Tickets to participate in events
. Retiree companionship
. Holiday entitlement during
vacation period
. Breastfeeding room
. Day care - nursery room
. Scholarships for academic
excellence for employees'
children
. Christmas gift for employees'
children
. Beverage benefits on specific dates
. Retirement gratuity
. Christmas box
. Discount on purchases of
company products
. School kit or bonus for children
under 18 years of age
. Dining room service (with some
% discount)
. Discount club
. Gifts specific celebrations
. Transportation service for all staff
. Recreational activities (e.g.,
marriage encounter retreats,
children's day, etc.)
. Housing subsidies
. Optional auto/home insurance
with company insurance
agreement
. Gift giving at the time of
childbirth
. Financing college prep courses
for employees' children
. Free psychological support
program
Health
Education
Social
Economic
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Gender Equality - Total Company
Gender Equality - Management Level
15%
21%
85%
79%
Men
Women
Note: The Gender Equality - Management Level chart considers women in all management positions, including junior,
middle and senior management, as a percentage of the total management workforce. Specifically in the commercial area,
the participation of women in manager and assistant manager positions is 24%.
Nationality, 2021
GRI 202-2
Handicapped people and
social minorities
5.7%
8.5%
17.2%
26.3%
42.3%
47
365
Argentineans
Brazilians
Chileans
2021
Paraguayans
Other nationalities
Argentina
Brazil
Chile
Paraguay
DIVERSITY AND INCLUSION
GRI 102-8, 202-1, 406-1, 405-1
• At Coca-Cola Andina we believe we
• Sanction any situation of discrimination,
harassment or any other type of disrespectful or
abusive behavior; guaranteeing that there will be
no retaliation of any kind as a result of having
reported or participated in any investigation in
relation to the aforementioned points.
Finally, we hereby declare that the commitment
of each of Coca-Cola Andina's collaborators
to inclusion, diversity, non-discrimination
and intolerance to harassment is a necessary
requirement to maintain a work atmosphere
that maximizes productivity and growth, in an
environment of trust and mutual respect.
are called upon to incorporate within
our organization the richness of the
plurality of each country and community
that welcomes us, which is why we
are committed to promoting inclusive
workplaces, in which diversity is valued,
thereby allowing all our collaborators
to achieve maximum personal and
professional development. We are
committed to:
• Remove barriers in hiring, promotion and
compensation of collaborators within the
Company.
• Ensure equal opportunities, eradicating any
type of discrimination.
• Promote diversity in all our Operations,
implementing actions that favor the hiring
of people with special needs and vulnerable
minorities, allowing the full development
of their potential.
• Ensure respectful workplaces, with no
tolerance for harassment of any kind.
5FLEXIBILITY AND COMMITMENT1326478910
Distribution by seniority, 2021
Collaborators by age, 2021
3,210
7,890
5,892
1,602
629
349
375
865
601
566
581
1,907
287
214
99
503
1,482
354
488
3,210
34
7,890
3
35
292
592
5,892
10
141
1,602
4
61
192
659
1,612
1,111
1,187
3,012
2,080
734
612
3,674
1,332
80
4,235
282
604
499
2,556
1,815
441
Argentina
Brazil
Chile
Paraguay
Argentina
Brazil
Chile
Paraguay
Less than 3 years
Between 3 and 6 years
Under 18 years old
Between 18 and 29 years old
Between 6 and 9 years
Between 9 and 12 years
Between 30 and 40 years old
Between 41 and 50 years old
More than 12 years
Total Collaborators
Between 51 and 60 years old
Between 61 and 70 years old
Over 70 years old
Total Collaborators
In line with our purpose of helping to build
a more diverse and inclusive society, and
based on our "Policy of respect for people,
diversity and inclusion", we carry out a series
of actions in all the countries where we
operate, in order to achieve this objective.
• "Women who Transform" program to
accompany and guide the women of
the company. One of the objectives was
to contribute to the evolution of self-
knowledge and promote women as the
key axis of transformation within the
organization. It was conducted through 4
cycles that included a monthly lecture and
weekly activities during 4 months.
• Meetings and workshops on diversity and
inclusion, together with the consulting firm
Bridge the Gap and the NGO La Usina.
• "Viva a Diferença" program, which is
structured in five pillars:
1. Generations: Through the "Young
Apprentices" program, and for more than a
decade, we have joined a social cause with
the opportunity to develop young people
in vulnerable situations; over the years,
about 40% have been hired. Through this
opportunity they are able to support their
families, increasing their family income by up
to 50%, according to data from the Coca-Cola
Brazil Institute.
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2.People with Disabilities: The greatest
milestone that generated the expansion of
the employability program for people with
disabilities in Coca-Cola Andina Brazil was
when we decided to raise awareness among
our employees. Currently, we evaluate each
vacancy so that the activities are adapted
to the particularities of each handicapped
professional, their potential and limitations;
thereby, we rapidly increase the number
of handicapped professionals hired,
maintaining the level of service and even
improving results. Since the beginning of
2021, our online events have been translated
into sign language.
3. Gender: At Andina Brazil we have the only
cold equipment area in the entire Coca-Cola
system in Latin America that, in addition to
having a large female presence in the team
and in leadership positions, also has women
working as technicians. In addition, our
sales area has 54% of its leadership positions
occupied by women.
4. LGBTQIA+: Prejudices are tackled
with information, which is why we
have the LGBTQIA+ agenda set in our
communication plan. In June, the month in
which we celebrate the pride of this cause, we
developed a series of contents explaining the
acronym and reinforcing that there is a place
of respect here, where everyone is free to be
who they are.
5. Ethnic-racial: Coca-Cola Company
Brazil publicly committed to MOVER, a
movement for racial equality that aims to be
an effective tool to combat racial inequality in
Brazil through awareness-raising, training and
the creation of employment opportunities.
Based on this commitment, together with
the entire Coca-Cola System in Brazil, we
implemented the Diversity Census, with 95%
adherence, which aims to help promote a work
environment in which all people have the
same professional opportunities, regardless of
their gender, race or physical appearance.
5FLEXIBILITY AND COMMITMENT1326478910
• Talento Mujer Program ("Talented
Women"): In Women's Month, two live
events were held for the entire organization,
with two leading women in their field,
addressing two issues: female leadership and
the context of women in Chile today; and co-
responsibility and unconscious biases.
• KOnversemos con todas ("Let's talk with
everyone"): A space created to meet, talk
and get to know talented women from our
organization on different topics related to
their role as women and leaders.
• Inclusion as a culture and awareness
workshop for middle management.
- Effective Inclusion Workshop for the
Human Resources team and incorporation
of a handicapped person to the team.
- Adaptation of access facilities to the plant
and administrative area.
- Implementation of billboards announcing
the "Differently Equal" program
communicating it to sector leaders.
• Expo Inclusion: In 2021, for the fourth
consecutive year we actively participated
in this fair as a partner. In our stand
we published inclusive positions and
conducted online interviews accompanied
by sign language translators where
necessary; we also participated in
discussions where we talked about the
importance of creating accessible spaces in
addition to the Company's insertion plans
and good practices in Santiago and regions.
More than
600 VISITS
More than
200 RESUMES
RECEIVED
• Intégrate Andina: Together with TACAL
Foundation, we worked training a group of
young people with disabilities, where they
learned about our company and the main
processes of the Operations Division. During
2021 we conducted two "Intégrate Andina";
one in Renca and the other in our Punta
Arenas plant. Additionally, we trained the
entire sales force on inclusive service. We
also trained the joint committees and unions
on disability through four workshops called
"The value of integrating handicapped
people in Andina".
• Andina Conecta: These are live events with
experts on different subjects, led by women.
In 2021, one of the topics addressed was the
progress and challenges in terms of inclusion,
especially in the Operations Division.
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HEALTH AND SAFETY
GRI: 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10
1. TOWARDS A SAFE AND SUSTAINABLE WORKING ENVIRONMENT
In 2021, in all Coca-Cola Andina operations, we worked to ensure that safety was
maintained inside and outside our facilities, striving to meet an objective that stems
from the commitment of senior management and with the responsible participation of
collaborators, third parties and service providers.
If there is something that is distinctive about Coca-Cola Andina, it is the search for continuous
improvement in the management of risk prevention that may affect the occupational health
and safety of all our collaborators, strongly driven through the generation of behavioral changes
that lead us to reduce accidents through prevention and permanent compliance with legal
regulations. This strategy is part of the Corporate Sustainability Policy and is supported by
international standards: ISO 45001 and OHSAS 18001, which determine the basic conditions
for implementing a Health and Safety Management System and which is periodically audited
by third parties. Likewise, all of our day-to-day work and management in each of our operations
is based on our six pillars of safety, which provide guidelines for each of our local programs and
initiatives. The scope of safety management is 360 degrees, meaning that it includes the entire
operation, from our own personnel to external personnel and occasional contractors.
5FLEXIBILITY AND COMMITMENT1326478910
2. STATEMENT OF SAFETY AND HEALTH PRINCIPLES
3. TOTAL SCOPE: 360 DEGREES
The scope group for safety management and indicators is total. It includes everyone who is
part of the business, acting on our behalf, regardless of their contractual status or function. We
fully manage our operations in production plants and distribution centers, whether they are
our own or third-party centers.
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Occasional
Contractors
s
e
c
i
v
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e
S
Restocking
Own
personnel
e
B ac k O ffi c
Industrial
Sales
sitores
Repo-
u tio n
D i s t ri b
Interplant
Fleet
Interplant
Fleet
L
o
g
i
s
t
i
c
s
Distribution
Fleet
1
2
3
Workplace injuries and
illnesses are foreseeable,
and safe behavior is
a cornerstone of our
work, because nothing
we do is worth causing
an injury or illness.
Company leaders are
committed to providing
safe facilities, tools
and processes, and
promoting a culture of
safety, on the basis that
our safety performance
is essential and basic to
our business.
Every employee is
responsible for ensuring
their own safety and
the safety of the people
and communities with
whom they interact.
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4. SAFETY PILLARS AND OUR PRINCIPAL INITIATIVES
5. INDICATORS
Rules and
Processes
Culture
Communication
Infrastructure
and Technology
Proper Partners
Comprehensive
Health
No. of collaborators covered by
BBSP* (own + third parties)
21,239
* BBSP behavior-based safety program
∙ Rules that save lives
∙ QSE Culture
∙ Definition of
∙ Maintenance of all
∙ Ensure that
- Golden rules
- Legal framework
- IMS: Integrated
management
systems.
- ISO certifications
- KORE Standards
- Internal Audits
- Code of Conduct
- Periodic safety
assessments and
inspections
- Risk Matrixes
(MIPER)
- Route evaluation
- Internal regulations
- Serious accidents
and fatalities
- Behavior Based
Safety Program
(PSBC- LSR - BBS)
- Management
Commitment (Top
to Bottom)
- Leading by
example
- Positive influence
- Open conversation
- Regular meetings
with leaders and
managers
- Regular meetings
with occupational
safety and health
stakeholders
- Recognizing and
communicating
good behaviors of
employees
- Human and
Organizational
Performance
(HOP)
goals by area and
periodic follow-up
facilities
- Creation of
communication
instances with
workers
- Occurrence
warnings
- Communication of
risk conditions
- Periodic meetings
with sales and
distribution teams.
- Monthly reports of
results presentation
- Satisfaction surveys
- Safety observers
- Integrated
newsletters and
mass mailings
in internal
communications
- Early warning
- Safety by design
- Safe processes and
methods
- Adequate
infrastructure
- Technological
upgrades
- Telemetry in
vehicles
- Records, reports,
statistics and
information
- Working methods
for the detection
and elimination
of process errors
(Poka Yoke)
- Integrated general
services
- APP safety
(routines)
contractors and
third parties
comply with safety
standards, rules
and processes.
- Contractors and
third parties
- Internal partners
- Freight forwarders
and carriers
- Contracts with
third parties
including
safety goals and
regulations
- Contractors
committee
- CIPA: Internal
Commission
for Accident
Prevention
- Academy of safety
technicians
- Freight forwarders'
forum
360° Health and Safety
∙ Health and quality
of life management
Accident rate (LTIR)
GRI: 403-9
- Mental health
- Healthy living
- Work environment
condition
monitoring
- Ergonomics
- Illicit substances
- Control of working
hours and overtime
1.11
1.12
Lost days due to accidents rate
27.16
22.89
2020
2021
Note: The occupational illness frequency rate for
2021 was 0.06.
"THE SAFETY AND HEALTH
OF PEOPLE ARE ESSENTIAL
VALUES AT COCA-COLA
ANDINA THAT GUIDE OUR
ACTIONS AT ALL TIMES,
ALWAYS INCORPORATED IN
THE PLANNING, EXECUTION
AND CLOSING STAGES OF THE
ACTIVITIES".
Jose Luis Palacios, Quality, Safety, Security
and Environment Manager of Coca-Cola
Andina Chile.
5FLEXIBILITY AND COMMITMENT1326478910
6. ACHIEVEMENTS IN RECENT YEARS
Decentralization of the behavior-based
safety program (BBSP) through management
committees. This plan has achieved positive
changes in the safety culture, and we will
continue to work on consolidating its
implementation and complementing it with
tools from the Life Saving Rules (LSR).
Virtual training tools have allowed us to
continue to train workers during the
current pandemic.
Migration of the occupational health and
safety management system (from OHSAS
18001 to ISO 45001) at the
production plants.
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Covid-19 management
Several health measures have been
implemented to prevent contagion, such
as access control, temperature control,
provision of masks, PCR or antigen tests,
etc. The objective is to safeguard and
protect the health of our employees, in
addition to allowing the continuity of our
operations. Throughout 2021, the focus
was to encourage vaccination, for which
we developed a series of communications
with the aim of stimulating vaccination,
in addition to monitoring and controlling
the progress of this process in the four
countries where we operate. There are
weekly meetings with the Human Resources
Committee to evaluate the evolution of
the pandemic, number of cases, progress
in vaccination and decisions related to our
employees. In addition, we send weekly
reports to the entire Regional Committee,
informing vaccination progress and
reporting the status of the pandemic in each
country and operation.
Call to Action management, which provided
a space for early, widespread and transversal
dissemination of accidents and serious
near misses that have occurred, allowing us
to take preventive actions and proactively
manage based on lessons learned.
Standardization of protocols for minimum
safety requirements for vehicles and
fleet, which must be considered for the
incorporation and contracting of new units.
Development and implementation of the
Route to Market strategy, which allows for
structured work with clear goals to significantly
reduce the accident rate in the transportation
and restocking companies, also ensuring zero
fatalities in off-site operations.
During the pandemic there has been a
decrease in the number of medical assistance
cases and accidents, due to the reduction
of people's mobility, quarantines and a
strengthening of people's self-care.
Comprehensive COVID-19 management:
Updating protocols according to the evolution of
the pandemic and regulations of each country,
adapting infrastructure and work modalities,
maintaining rapid testing schemes, permanent
use of masks, capacity control, temperature
control at access points, and follow-up and
incentives for the national vaccination plan.
5FLEXIBILITY AND COMMITMENT1326478910
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Business pillar
AGILITY,
FLEXIBILITY AND
COMMITMENT
Material issues
Talent and diversity
COMMUNITY
OUTREACH
REVIEW THE COMPLETE
MANAGEMENT
APPROACH HERE
We aspire to build an agile
company, enhancing the
flexibility and commitment
of our employees, promoting
diversity and inclusion, and
fostering the development of
talent; convinced that labor
welfare is fundamental for
the success of the Company
and society".
Gonzalo Muñoz, Human Resources
Manager of Coca-Cola Andina
GRI 102-13, GRI 203-1, GRI 203-2,
GRI 413-1, GRI 413-2
At Coca-Cola Andina we define community
relations guidelines to be attentive to the
needs of our surroundings. We focus on
establishing long-term relationships based
on trust and providing value in the issues
that are relevant to each one of them.
We pay special attention to developing
programs that support young people and
women, generating skills and opportunities
for them to develop. We seek 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 remained close to our
communities through initiatives that helped
them to face the economic and social crisis
deepened by the COVID-19 pandemic,
supporting them to move forward.
INVESTMENT IN COMMUNITY* (US$)
VOLUNTEER HOURS
967,507
967,507
1,195
1,195
NUMBER OF BENEFICIARIES IN
THE COMMUNITY
669,906
669,906
DONATED PRODUCT
903,990
903,990
liters
219,396
219,396
US$
5FLEXIBILITY AND COMMITMENT1326478910
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MAIN ORGANIZATIONS WE SUPPORT
Argentina:
Brazil:
Chile:
Paraguay:
Municipalities (29
agreements. Main ones:
Córdoba, Godoy Cruz,
Montecristo)
Junior Achievement
Foundation
Student Scholarship Fund
Foundation
Food Bank (Córdoba,
Rosario, Mendoza, Santa
Fe, Santa Fe, Neuquén,
Bahia Blanca)
La Rañatela
OMAS Foundation
Empate Foundation
Los Carreros Cooperative
GEA Sustentable
AFAC - Argentine
Coca-Cola Manufacturers
Association
Food Network (Red de
Alimentos)
Renca Municipality
(Corporation for
Economic, Cultural and
Sports Development of
Renca)
Municipality of Maipú
Cultiva Corporation
María Ayuda Foundation
SOFOFA
AB Chile
AGIP - Chilean
Association of Supplier
Industries
Confederación Gremial
de Comercio Detallista y
Turismo de Chile (Chilean
Retail Trade and Tourism
Trade Confederation)
Coca-Cola Institute Brazil
Packaging Coalition
Coletivo Jovem Online
- Grupo Espirita
Consolador Prometido
- Paulo da Portela
Community Center for
Professional Training
- Tatiane Lima Social and
Cultural Center
- Association of the
Methodist Church - 1st
Ecclesiastical Region
- São Sebastião
Community Center of Vila
de Cava
- Fraternal Christian Aid of
the City of Ribeirão Preto
AFBCC - Brazilian
Coca-Cola Manufacturers
Association
ARBERISA - Recreational
and Charitable Association
of the Employees of Rio de
Janeiro Refrescos Ltda.
ABIR - Brazilian
Soft Drink Industries
Association
Fundación Paraguaya
Paraguayan Red Cross
Social Pastoral of Asunción
Moisés Bertoni Foundation
Tierranuestra Association
Food Bank
A Todo Pulmón
Chamber of Food and
Beverages
PRO Development
ADEC: Association of
Christian Entrepreneurs
Note: During 2021 we invested US$ 967,507 in community initiatives and contributed US$ 1,242,473 to tax-exempt associations and/or groups.
5FLEXIBILITY AND COMMITMENT1326478910
OUR INITIATIVES:
CHILE
ARGENTINA
Community
In 2021 we generated a change in the way
we build community through projects that
strengthen ties, starting with the area near the
Puente Alto distribution center. We defined
the list of priority stakeholders, which allowed
us to meet with 26 local organizations,
such as neighborhood associations, school
representatives, foundations, among others.
In this way, we supported the common pot
"La Bendición" through the delivery of more
than 2,200 lunches and 370 liters of beverages
and summoning 20 volunteers from the
distribution center; we also improved
a multi-purpose court, hired neighbors
during the company's high sales season and
supported the Christmas party, delivering 200
beverages to be enjoyed by children in the
sector. During 2022 we expect to strengthen
the bond in Puente Alto and replicate the
experience in the rest of the company's
distribution centers throughout Chile.
Women
Inspired by the empowerment of women
and with the commitment to contribute
to the development of the neighboring
communities to our sales offices, warehouses
and production plants we developed in 2019
the "Retazos de Tela" Program with the Ong
OMAS of Barrio Chacras la Merced located
in front of our Montecristo Plant. "Retazos de
tela" ("Fabric scraps") consists in the cutting,
making and packaging of fabric "rags" to
be used in the cleaning and maintenance
of the production lines of our Plant. The
objective of the project is also to include
these fabric scraps in the circuit of a circular
economy, turning waste into an economic
resource and a source of employment for
people in vulnerable situations. In 2021, we
incorporated La Rañatela, an association
from Mendoza that works with the social and
labor inclusion of more than 90 handicapped
people under the framework of the Protected
Production Workshop and with a wide
network of independent women seamstresses
who work from their own homes. We
included both organizations in our supplier
list, formalizing the work and generating
monthly supply orders.
Youth
We create a better future by fostering a
diverse and inclusive culture in our own
operations and promoting it in the markets
we serve through community initiatives.
For this reason, since 2020 we have been
running "ProgramÓN", a training program
in digital skills and the labor world for
young people organized in conjunction
with The Coca-Cola Company and
Chicos.net. A total of 460 young people
graduated, 110 of whom belong to the
Andina territory: Unquillo, Villa Allende,
Río Cuarto, Rio Ceballos, Godoy Cruz,
Junín, Rosario, Santa Fe, and Córdoba. In
2021, we continued to train 398 young
people. In addition, we work together with
the Junior Achievement Foundation with
educational programs for young people and
women in different areas: environmental,
economic, entrepreneurship, civic and
social. This program has been active since
2012 and more than 7,500 young people
have been able to take part in the courses.
And we continue together with FONBEC
since 2015, year after year consolidating the
support over 90 sponsors and more than 70
annual scholarships.
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Community
We make the donation of our products
through the Food Bank Network, to reach
non-profit organizations, soup kitchens and
social entities that need them. Since
2018, we created an alliance with Banco
de Alimentos Córdoba and La Escuela
Pimienta Negra to carry out the "Healthy
Cooking Workshops"program. These
are workshops on healthy and conscious
cooking, aimed at 80 people who are
responsible for providing some food service
in vulnerable communities, so their training
generates a high impact among the direct
beneficiaries." The themes of the workshops
seek to raise awareness of the importance
of healthy eating and provide tools for the
consumption of foods with high
nutritional value (fruits, vegetables, legumes
and peanuts).
This year, we held the first Pastry Training
at Casa Empate sponsored by Coca-Cola
Andina. It is a space that was opened with
the aim of providing real and necessary tools
for the future employment of children with
Down Syndrome. This first experience helps
them develop the skills of responsibility,
fulfillment of goals, perseverance and
teamwork, among others. This specific
training served to define the team of
the next project that is already a reality,
"Masamano", the own brand that serves as a
labor support for young patissiers, generating
a real source of inclusive work, and above all,
self-sustainable.
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Community
"Por todas as mesas": With the donation of
approximately 150 thousand liters of bevera-
ges to the "Brazil Without Hunger" campaign,
Coca Cola Andina Brazil has impacted
around 30 thousand socially vulnerable
families, together with other actions of the
Coca-Cola Brazil System.
Emergency actions to combat COVID-19:
Creation of a fund to combat the impacts of
the pandemic and defining awareness, health
and food safety strategies, with the support
of communities, NGOs and other partners
(593,000 people impacted).
MOVER: Movement formed by 45
companies to promote racial equality. Andina
called on its employees to be multipliers of
the theme, through the "Viva a Diferença"
program, whose first action was the Diversity
Census.
BRAZIL
Youth
Coca-Cola Andina Brazil invested more
than R$ 600 thousand reais and trained
about 3,000 young people through the
"Coletivo Online", a training and insertion
program for young people between 16 and
25 years of age in the labor market. The
"online" version of the project, launched
in 2021, further expanded the number of
young people involved. Additionally, the
"Kolabora Mentoring" program provided
Coca-Cola Andina Brazil employees
with the opportunity to contribute to the
guidance of the young participants of the
"Coletivo Online" program in their career
paths and also to prepare them for the
main challenges of the labor market. A
total of 192 hours were dedicated and 64
young people were impacted. In "Kolabora
Entrevista", Coca-Cola Andina Brazil
employees acted as mentors to guide and
prepare young people for a job interview,
addressing their main fears and providing
them with guidance for this important
moment. Twenty-four hours were dedicated
and 24 young people were impacted.
COLETIVO JOVEM ONLINE
More than
BRL 600 THOUSAND
INVESTED
NEARLY 3,000
young people trained
KOLABORA MENTORING
192 HOURS
dedicated to 64 young people.
KOLABORA INTERVIEW
24 HOURS
dedicated for 24 young people
PARAGUAY
Community
Support the National Vaccination Plan to
allow most of the population to access the
corresponding doses, mainly those who are
within the risk group, was the objective of
the #VaccinatePy campaign promoted with
the Ministry of Public Health and Social
Welfare the Pacto Global Paraguay, the
Paraguayan Red Cross, with the support
of the Coca-Cola Foundation. The plan
consisted of strengthening the logistics for
the vaccination brigades to travel around
the interior of the country with 5 permanent
vehicles, 121 tablets for registration with
internet connection and more than 500,000
printed vaccination cards and consent forms.
On the other hand, work was carried out
to amplify the communication campaign
#VacunatePy, with TV and radio spots,
through the main media throughout the
country and materials for social media with
the participation of well-known public
figures. The campaign's main message is
that the vaccine is the best way to protect
oneself and loved ones against the disease,
as it has proven to be effective in reducing
COVID-19 positive cases and the number of
deaths worldwide.
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6
Corporate governance
6CORPORATEGOVERNANCE1325478910
Our Corporate Governance Model is
intended to ensure that the Company's
governance is carried out ethically and
with integrity, always acting within the
legal framework.
The Model has been developed
notwithstanding the provisions of Chile's
Corporations Law (Law No. 18,046) and its
amendments, as applicable.
GRI: 102-16, 102-17, 102-18,102-19,
102-23, 102-25, 107-17
Shareholders
BOARD OF
DIRECTORS
GSM
In-person,
Remote and
real time
External auditor
Executive
Audit/
Directors
i
s
e
e
tt
m
m
o
C
Culture, Ethics
and Sustainability
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CORPORATE GOVERNANCE
MODEL OBJECTIVES
∙ To guarantee the generation of sustainable
value, taking into account the interests of
our main stakeholders: the community
where we operate, our collaborators,
suppliers, customers and investors.
∙ Promote a culture of business ethics that
mitigates potential irregularities.
∙ Provide an effective framework for
transparency, control and management
of the Company's responsibility, through
policies and standards that guide decisions.
∙ Care for the corporate reputation in order
to contribute to the creation of long-term
value.
∙ Promote transparency and reliability of
information.
∙ Control management efficiency, process
improvement and compliance.
Induction and
Training
Experts
(Advisors)
Visits to
operations
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Audit
Investor
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SENIOR
MANAGEMENT:
CORPORATE OFFICERS
AND GENERAL
MANAGERS
Integrated
Report
Sustainability
Management / areas / collaborators
Crisis
Management
Risk
Management
Whistleblower
System
6CORPORATEGOVERNANCE1325478910
PRINCIPAL CORPORATE POLICIES
GRI: 102-25, 102-26, 102-32, 102-35, 103-1, 103-2, 103-3, 204-1, 205-2, 205-3, 206-1
We are permanently reinforcing our Corporate Governance practices, which are formally set out
in mandatory policies and standards containing precise guidelines.
ENVIRONMENT
GOVERNANCE
Sustainability Policy
Board of Directors Diversity Policy
Beverage and Food Loss Policy
COLLABORATORS:
COLLABORATORS:
Human Rights Policy
Corporate Policy on Non-Discrimination
and Harassment, Respect for People,
Diversity and Inclusion
COMMUNITY:
Donations Policy
1Ley 20.393, Foreign Corrupt Practices Act and other
anti-corruption laws.
Corporate Governance Practices1
Policy on Habituality
Code of Ethics and Business Conduct
Code of Ethics for Suppliers and Third
Parties
Privileged Information Manual and
Other Information of Interest to the
Market
Corporate Policy Prevention of Corrupt
Crimes and Practices1
Procedure for Receiving, Processing and
Investigating Complaints through the
Anonymous Whistleblower Channel
Gifts and Hospitality Policy
Audit Committee Charter
Corporate Tax Policy
Risk Management Policy
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ETHICAL CULTURE
At Coca-Cola Andina, all our decisions are
carried out considering our corporate ethical
culture, which reflects a commitment that
goes far beyond simple compliance with the
law, considering the Company's principles and
values as a framework.
"OUR CORPORATE VALUES
AND THE WAY WE DO THINGS
ALLOW US TO ALIGN THE
COMPANY'S GOVERNANCE
DECISIONS, IN ADDITION TO
GENERATING A CONNECTION
WITH OUR STAKEHOLDERS.
THIS GUARANTEES THE
GENERATION OF VALUE FOR
ALL OUR SHAREHOLDERS AND
STAKEHOLDERS".
Gonzalo Said, member of the Board of
Directors.
CODE OF ETHICS AND
BUSINESS CONDUCT
It is a guide of minimum principles of
conduct for all employees, contractors,
consultants, executives and members of
the Board of Directors of the Company,
as well as for any third party acting on
its behalf. It expresses the Company's
commitment to incorporate the interests of
the community, to operate in compliance
with environmental regulations and to care
for natural resources.2
Non-compliance with this Code may result
in disciplinary action which, depending on
the circumstances of the matter, may include
dismissal or termination of employment and
even civil or criminal penalties
against offenders.
Policy on Management of Conflicts of
Interest and Related Party Transactions
2The Code of Ethics and Business Conduct was updated
in April 2021 and duly communicated to the entire
Company and subsidiaries.
6CORPORATEGOVERNANCE1325478910
PRINCIPLES SET FORTH IN OUR CODE OF ETHICS AND BUSINESS CONDUCT
GRI: 102-25
Respect for people and the work
environment: all people have the right to
work in an environment where their dignity
is respected. We reject any form of arbitrary
discrimination and promote fair, responsible
and equal treatment.
Legal and regulatory standards: in the
performance of their duties, all employees
must comply with the applicable legal and
regulatory provisions, as well as with the
Company's internal regulations, policies
and procedures.
Respect and responsibility for union
activity: we understand union activity
as an exercise of freedom and rights,
which guarantees the representation of its
members, constructive dialogue and the
common good.
Prohibition of corrupt practices: we reject
any corrupt act or any act that could generate
corruption in third parties. We are committed
to complying with the letter and spirit of all
laws and regulations that sanction corruption
in all countries where we operate.
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Fraud: We consider fraud to be a serious
violation of the Code and should be
severely punished.
Accounting information: the Company's
financial statements give a true and fair view
of its financial position and net worth. We
have policies and practices to ensure
this compliance.
Conflicts of interest: we have policies
and practices to prevent situations that
may compromise the trust placed in the
Company, and to avoid any type of
conflict of interest.
Dealings with public officials, customers and
suppliers of the Company: we have policies
and practices that prohibit hiring a public
official, domestic or foreign, to provide services
for an illegitimate purpose, or in conflict in any
way with their duties or obligations.
Competition and fair dealing: We respect free
competition. It is our policy and objective
to outperform our competitors in a fair and
honest manner, seeking competitive advantages
through better performance and never through
unethical or illegal business practices.
Protection and proper use of Company
assets and information: Company assets and
instruments must be used only for legitimate
business purposes and individuals must take
measures to ensure that they are not stolen,
damaged or misused.
Internal loans: we have policies and practices
that prohibit making loans to the Company's
directors and senior executives.
Obligation to report any illegal and
unethical behavior by the Company: the
Company has established channels for
reporting violations of the Code.
Communities and the environment: the
Company seeks to ensure that its growth
goes hand in hand with socially responsible
management and care for the environment
and its resources.
Responsibility of leaders: the Company is
concerned with promoting high standards of
behavior, disseminating the contents of the
Code of Ethics and ensuring its application.
Additionally, we have a Code of Ethics for
Suppliers and Third Parties that summarizes
the minimum principles of conduct in which
the actions of suppliers, contractors and
subcontractors that have a relationship with
the Company and each of its subsidiaries,
as well as their respective collaborators and
intermediaries, must be framed.
6CORPORATEGOVERNANCE1325478910
CRIME PREVENTION MODEL (CPM)
GRI: 103-1, 103-2, 103-3, 204-1, 205-1, 205-2
We have a model of organization,
management and supervision, focused
on crime prevention and whose purpose
is to implement regulatory compliance
programs that promote law-abiding behavior,
preventing crimes that could be committed
in the future, and for which the entity may
be legally and criminally responsible. The
scope of this model is corporate and includes
controllers, directors, senior management,
representatives, executives, workers and third
party contractors of Embotelladora Andina
S.A. and its subsidiaries.
This model considers different anti-
corruption regulations in force, such as the
Criminal Liability Law for Legal Entities
of Chile (Law No. 20,393), the Foreign
Corrupt Practices Act of the United States
of America (FCPA), and similar applicable
laws, such as the Criminal Liability Law
Applicable to Legal Entities of Argentina
(Law No. 27,401).
This model is constantly updated in light of
changes in legislation and is audited on an
ongoing basis.
3Certified by an external entity authorized by the Chilean
regulatory authority, the Financial Market Commission
(CMF), a certification obtained on September 25, 2020
and valid for two years.
Board of Directors
of Embotelladora
Andina S.A.
Board of Directors
and/or
Senior Management
Authority
Subsidiaries
Office of the
General Manager of
Embotelladora Andina
S.A. and its subsidiaries
Audit
Committee
Ethic,
Culture and
Sustainability
Committee
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Anti-corruption laws and regulations
Crime prevention policy
Crime Prevention Manager
Prevention
activities
Detection
activities
Response
activities
CPM
Supervision
and
Monitoring
SUPPORT
AREAS
CONTROL
ENVIRONMENT
LEGAL AND LABOR
INSTRUMENTS
Administration
and Finance
Management Areas
Code of Ethics and
Business Conduct
Internal Rules of
Order, Hygiene and
Safety Chapter
Legal Management
Areas
Whistleblowing
Procedure
Annex
Employment
Contract
Human Resources
Management Areas
Order, Hygiene and
Safety Procedures and
Internal Regulations
Annex Contract
for the Provision of
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Sworn Statements
Directors
and Senior Officers
CRIME PREVENTION MODEL CERTIFICATION
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6CORPORATEGOVERNANCE1325478910
AWARENESS-RAISING: OUR CULTURE
OF ETHICS AND INTEGRITY
GRI: 205-2
WHISTLEBLOWING CHANNEL
GRI: 205-1, 205-2 ,205-3, 206-1
Our Whistleblowing Channel is available on the
Company's corporate website to receive, evaluate
and investigate complaints from employees and
third parties in general, in different matters,
including violations of laws and regulations that
prohibit and punish corruption and improper
payments, such as those contained in Law No.
20,393, 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.
This Anonymous Whistleblower Channel
guarantees the anonymity of the whistleblowers
who use it and wish to do so. In addition, and
consistent with the Company's internal policies,
no member of Embotelladora Andina S.A. may
retaliate, nor allow any other person or group of
persons to retaliate, directly or indirectly, against
any person who makes a report in good faith.
All members of the Board of Directors of
Embotelladora Andina S.A. have unrestricted,
remote, immediate and permanent access to all
complaints received through the Anonymous
Complaints Channel.
The Audit Committee analyzes all the
complaints received and orders their
investigation as soon as possible; the findings
report is presented to the Board of Directors as
soon as possible.
Complaints received
The 24 complaints that were under review at
the close of 2020 were reviewed, addressed
and closed.
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In 2021 we received 58 complaints as follows:
Policy
Conflicts Corruption Workplace Discrimination Environment, Relations
Sexual
Other
Total
violations of interest
harassment
safety and
with
harassment
health
indigenous
peoples
Total
2
4
0
26
1
3
0
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22
58
OF THE TOTAL NUMBER OF
COMPLAINTS RECEIVED IN
2021, 54 WERE REVIEWED,
ADDRESSED AND CLOSED,
AND 4 ARE UNDER REVIEW AT
YEAR-END.
Coca-Cola Andina's Management has carried
out, among others, the following actions in
response to the different complaints received
during 2021 through the Ethicpoints
channel:
Internal Audit investigations and reports
Field visits
Reorganization of processes and creation
of new workflows
Reassignment of employee positions
Analysis of the work environment and
behavior in the company
Performance analysis
Implementation of coaching programs
Employee terminations
Review and validation of protocols and/
or creation of new ones.
Blocking of suppliers
Reinforcement of communication and
institutional training
We have a training program that allows all
employees to learn about the policies of
Corporate Governance, Code of Ethics and
Business Conduct, Anonymous Complaints,
Crime Prevention and Free Competition in
the Markets.
As part of our commitment to ethics,
Coca-Cola Andina is a partner of Fundación
Generación Empresarial, a non-profit
organization that, since 1995, seeks to
promote integrity in organizations. It
supports companies and institutions in the
management of their ethics and compliance
cultures, developing and implementing
specific tools for this purpose.
• Anti-corruption policies and procedures
have been communicated to the 14
members of the Board of Directors.
During 2021, no training was provided to
them on this subject.
• During 2021, a communication campaign
of the code of ethics and conduct, which
includes a section on the prohibition of
corrupt practices, reached 100% of the
employees of our operations in Argentina,
Brazil, Chile and Paraguay. Additionally,
as of July 2021, 12,979 employees were
trained in anti-corruption policies and
procedures, which corresponds to 100%
of the employees who at that time had
permanent contracts in our operations in
the four countries.
• The Code of Ethics for suppliers and
third parties is available on our website
and there is evidence of acceptance by
100% of them. Additionally, evaluations
are conducted in the field or through
supporting documentation on various
topics, including legal compliance and
business integrity, to 313 suppliers in
Argentina (14.6% of the country total); to
258 in Brazil (7.5% of the country total);
to 375 in Chile (21.8% of the country total)
and to 425 suppliers in Paraguay (42.3% of
the country total).
6CORPORATEGOVERNANCE1325478910
EXPERIENCE OF THE BOARD
OF DIRECTORS
GRI 102-23; 102-27
JUAN CLARO GONZÁLEZ
Chairman of the Board
Non-Executive
Appointment: He has been a member of the
Company's Board of Directors since 2004 and
has been Chairman of the Board since then.
Experience: Mr. Claro has studies in Civil
Engineering from the Pontificia Universidad
Católica de Chile. He has developed an
outstanding business representation activity,
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
the Chile-China Bilateral Business Council
between 2005 and 2007.
He has a solid track record in the beverage
and mass consumption industry, with more
than 17 years of experience. He is currently a
member of the Risk Committee at Agrosuper
S.A. and the Sustainability and Stakeholders
Committee at Antofagasta PLC.
He has been a member of the following
boards: Gasco S.A. (1991-2000), CMPC S.A.
(2005-2011) and Entel S.A. (2005-2011). He
was Chairman of Metrogas (1994-2000) and
of Emel S.A. (2001-2007).
Other positions: He is also currently a
director of Antofagasta PLC, Cementos
Melón and Agrosuper. He is also an
honorary member of the Centro de Estudios
Públicos (CEP).
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SALVADOR SAID SOMAVÍA
Vice Chairman of the Board
Member of Controlling Group
Non-Executive
Appointment: Member of the Company's
Board of Directors since 1992.
Experience: Business Administrator from
Universidad Gabriela Mistral, with a major
in Business Management. He was a 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 continues to serve on the
Board of Directors. He is a member of the
Board of Directors of the Centro de Estudios
Públicos (CEP). He has 30 years of experience
in the beverage and mass consumption
industry. He has knowledge and experience
in risk management, due to his capacity as
director of banks since 2011 and member of
committees related to that matter.
Other positions: Chairman of Scotiabank
Chile S.A., Chairman of Parque Arauco
S.A., Director Inversiones Caburga SpA,
Inversiones Cabildo SpA, SM-Salud S.A.,
Idelpa Energia S.A., Inversiones Sevillana
S.A., Inmobiliaria Atlantis S.A., Inversiones
del Pacifico S.A., and Administradora
Costanera S.A.
EFFECTIVENESS OF THE
BOARD OF DIRECTORS
GRI: 102-18, 102-20, 102-22, 102-23,
102-24, 102-26, 102-30
A director is considered to be independent
when none of the situations described in
Article 50 bis of the Chilean Corporations
Law apply to him/her.
NOMINATION PROCESS
The election of directors is made in accordance
with the voting process specifically established
in the Chilean Corporations Law. According
to this legislation, new nominations may
be received up to the time of the General
Shareholders' Meeting (except in the case
of candidates for independent director, who
must be presented at least 10 days before the
Meeting). Any shareholder may propose any
candidate he/she wishes.
The election of the members of the Board of
Directors is generally carried out by means
of the ballot system, through which the
shareholders express their choice for the
candidate of their preference among those
proposed to the Meeting. Series A and B are
voted separately and the candidates who
receive the highest number of votes are elected,
and there must always be at least one candidate
among them who meets the conditions to be
considered as independent. In 2021, in which
the General Shareholders' Meeting was held
remotely, the election of the members of
the Board of Directors was carried out using
electronic means, for which we hired the
services of the Chilean Institute of Directors.
The election of the Chairman of the Board of
Directors takes place at the first session held
after the renewal of the Board. Neither Chilean
law nor the Company's bylaws stipulate a
procedure according to which this election
must be carried out, nor do they provide for
special requirements to hold the position of
Chairman of the Board of Directors.
ELECTION OF THE BOARD
OF DIRECTORS
Our Board of Directors is composed of
14 directors, who are nominated and
elected every three years by the General
Shareholders' Meeting, by separate votes
of the Series A and Series B shareholders.
The holders of Series A shares elect 12
directors, and the holders of Series B shares
elect two directors. They may or may not
be shareholders, serve three-year terms and
may be reelected for an indefinite number
of terms. The last election was held at the
General Shareholders' Meeting held on April
15, 2021.
The rights of Series A and B are specified in
Article 5 of the Company's Bylaws.
6CORPORATEGOVERNANCE1325478910
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EDUARDO CHADWICK CLARO
Member of the Controlling Group
Non-Executive
JOSÉ ANTONIO GARCÉS SILVA
Member of the Controlling Group
Non-Executive
GONZALO SAID HANDAL
Member of the Controlling Group
Non-Executive
MARCO ANTONIO ARAUJO
Non-Executive
Appointment: Member of the Company's
Board of Directors since June 2012.
Appointment: Member of the Company's
Board of Directors since 1992.
Appointment: Member of the Company's
Board of Directors since April 1993.
Appointment: Member of the Company's
Board of Directors since April 2020.
Experience: Commercial Engineer from the
Universidad Gabriela Mistral with a major
in Finance; at postgraduate level he has an
Executive MBA and PADE from the ESE
of the Universidad de los Andes. Master's
in Philosophy and Ethics from Universidad
Adolfo Ibáñez. Chairman of the Board of
Banvida S.A., Past President of USEC and
director of Fundación Paternitas, as well as
General Manager of Inversiones San Andrés
(family holding) and Director of Sofofa. He
has 25 years of experience in the beverage
and mass consumption industry and a vast
experience in risk and cybersecurity in the
financial sector. He is currently a member of
the Risk Committee of Banco Consorcio.
Other positions: He is also currently a
director of Banco Consorcio, CN Life
Compañía de Seguros, Consorcio Nacional de
Seguros, Banvida S.A., Andes Iron SpA and
Viña Montes.
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 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: He is a director at Scotiabank
Chile S.A. and at the Holding of Said Handal
Companies.
Experience: Systems Engineer and
Industrial Engineer, both degrees from
Pontificia Universidad Católica de Rio de
Janeiro, Brazil; Master in Finance, Pontificia
Universidad Católica de Rio de Janeiro, Brazil;
postgraduate Accounting FGV, Rio de Janeiro,
Brazil. He is CFO Latin America Operating
Unit at The Coca-Cola Company. He has 29
years of experience in the beverage and mass
consumption industry, 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: He is a Civil Industrial Engineer
from the Pontificia Universidad Católica de
Chile and elected UC Engineer of the Year
in 2017. He is a recognized businessman in
the agricultural sector, mainly in the wine,
beverage and mass consumption industry,
with more than 30 years of experience, both
in Chile and abroad, where he is considered
one of the main modernizers of the wine
industry in our country. He also successfully
participated at Oxford University in The
Oxford Strategic Leadership Programme in
2013. He was President of Coca-Cola Polar
until 2012 and is currently a member of the
Ethics, Culture and Sustainability Committee
of Coca-Cola Andina. He was also Chairman
of Cervecería Austral until 2007 and Director
of SOFOFA until 2015.
Other Positions: He is Chairman of Holding
Chadwick Group, Founder and Director
of Hatch Mansfield Co. in England and
Maltexco S.A. He has been an ABAC/APEC
representative since 2018 and was selected
this year 2021, as one of the 25 people
chosen from Imagen de Chile, to be part of
the "Chilen@s Creando Futuro" Network
that helps to represent the different sectors
with which the image of our country is built
abroad.
6CORPORATEGOVERNANCE1325478910
DOMINGO CRUZAT AMUNÁTEGUI
Independent
Non-Executive
GEORGES DE BOURGUIGNON ARNDT
Non-Executive
FELIPE JOANNON VERGARA
Non-Executive
ROBERTO MERCADÉ
Non-Executive
Appointment: Member of the Company's
Board of Directors since 2021.
Appointment: Member of the Company's
Board of Directors since April 2016.
Appointment: Member of the Company's
Board of Directors since April 2018.
Appointment: Member of the Company's
Board of Directors since April 2019.
Experience: Industrial Civil Engineer
from Universidad de Chile and holds an
MBA from The Wharton School of the
University of Pennsylvania. Previously,
he was Commercial Manager at Pesquera
Coloso-San José; CEO of Watt's Alimentos;
CEO of Loncoleche, CEO of Bellsouth Chile
and Deputy General Manager of Compañía
Sudamericana de Vapores. He has 12 years
of experience in the beverage and mass
consumption industry. He is a university
professor in the areas of marketing and sales
at the ESE of the Universidad de los Andes.
He has also served on the boards of Conpax,
Construmart, Copefrut, Essal, Principal
Financial Group, Compañía Sudamericana
de Vapores and Viña San Pedro Tarapacá. He
was also Chairman of the Board of Correos
de Chile and Chairman of SEP (Sistema de
Empresas Públicas).
Other positions: Currently, he is a member of
the Board of Directors of Enel Américas, IP
Chile, SEP and Stars (family office). He is also
a founding partner of Fundación Esperanza,
dedicated to rehabilitating young drug
addicts.
Experience: He is an economist from the
Pontificia Universidad Católica de Chile, with
a specialization in Finance and holds an MBA
from Harvard University. In the academic
field, he was a professor of Economics at
the Universidad Católica de Chile. As a
businessman, he is co-founder and currently
President of Asset Chile S.A., a corporate
finance consulting firm, and Asset AGF, an
investment fund management company.
He also serves as an independent director
of several companies, including Sociedad
Química y Minera de Chile S.A., where he is a
member of the Directors' Committee and the
Sustainability Committee. Previously, he was
a director of Latam Airlines Group (2012-
2019) and Empresas La Polar S.A. (2011-
2015), where he chaired both the Directors'
Committee and the Risk Committee of those
companies, and was a director of Sal Lobos
S.A. (2006-2018). In these three companies
he accumulated more than ten years of
experience in mass consumption issues.
Other positions: He currently serves as a
director of Tánica S.A. (since 2019).
Experience: Business Administrator with
specialization in Economics from the
Pontificia Universidad Católica de Chile and
MBA from The Wharton School. Previously,
he was director of companies of the Luksic
Group; Development Manager of Quiñenco
S.A., General Manager of Viña Santa Rita
and Deputy 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 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, Maquinarias y Construcciones Río
Loa S.A., Almendral S.A. and Constructora e
Inmobiliaria EBCO S.A.
Experience: Industrial Engineer from Georgia
Institute of Technology, Atlanta (USA).
Previously served on the Boards of ARCA-
Lindley in Peru, Escuela Campo Alegre
in Venezuela and American International
School of Johannesburg in South Africa. He
has 29 years of experience in the beverage
and mass consumption industry. He was
responsible for managing risk management
in the Latin Center unit of The Coca-Cola
Company. In sustainability, he was responsible
for co-creating and managing the World
Without Waste strategy for the same unit.
He has developed his expertise in the Latin
America, Africa and Asia regions.
Other positions: He is currently President
of Coca-Cola Mexico at The Coca-Cola
Company.
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GONZALO PAROT PALMA
Independent
Non-Executive
CARMEN ROMÁN ARANCIBIA
Non-Executive
MARIANO ROSSI
Non-Executive
RODRIGO VERGARA MONTES
Non-Executive
Appointment: Member of the Company's
Board of Directors since 2009.
Appointment: Member of the Company's
Board of Directors since February 2021.
Appointment: Member of the Company's
Board of Directors since June 2012.
Appointment: Member of the Company's
Board of Directors since April 2018.
Experience: Bachelor in Business
Administration, School of Economics,
Universidad de Buenos Aires, specialized
in Finance. At The Coca-Cola Company he
was Chief Financial Officer in Spain, Latin
America CFO 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, Universidad de Chile; Master in
Industrial Engineering, Universidad de Chile;
Master in Economics, University of Chicago;
his areas of specialization are Business
Economics and Finance. Previously, he was
Head of Research at CCU S.A., Corporate
Manager of Research and Development at
Empresas CMPC S.A., Executive President
of Envases y Productos de Papel CMPC
S.A.; General Manager and director of
Celulosa del Pacífico; Corporate General
Manager of CMPC Tissue S.A.; and director
and Corporate General Manager of Copesa
S.A. In his career, he has served as director,
Cheif Executive Officer and Director of
the Municipal Corporation and Municipal
Theater of Santiago; director of the National
Press Association and the Chilean-Argentine
Chamber of Business; professor and director
of the School of Economics and Business at
the Universidad de Chile; professor and Dean
of Economics and Administration at UGM.
He has 16 years of experience in the beverage
and mass consumption industry.
Other positions: He currently serves as a
director at AES Gener S.A
Experience: Lawyer from Universidad
Gabriela Mistral. Former Legal Director
and Head of Corporate Affairs of Walmart
Chile. She has developed a solid experience
in the retail industry, working for 11 years
at Walmart, four years at Santa Isabel, and
seven years at Cencosud. She has knowledge
and experience in risk management, due
to her role as Director of Compliance and
Ethics at Walmart. Due to her knowledge
and experience in Sustainability, she was
appointed Co-Chair of the Sustainability and
Corporate Governance Committee of Sofofa.
In the area of diversity and inclusion, she has
knowledge and experience as a mentor and
trainer of women's leadership programs.
Other positions: She is currently a member
of the Board of Directors of the Legal
Sustainability Council of the Universidad
Católica and the Valle Escondido Golf Club.
In addition, she is an advisor to Comunidad
Mujer and the NGO Laboratoria and belongs
to the Icare Legal Circle.
Experience: Business Admnistrator from
the Pontificia Universidad Católica de
Chile. PhD in Economics from Harvard
University. He was President of the Central
Bank of Chile (2011-2016) and Director
of the same monetary entity (2009-2011).
He was a director at Moneda S.A., Moneda
AGF, Entel S.A. and Banco Internacional.
He has knowledge and experience in
Risk Management and Financial Matters,
due to the functions he developed in the
Central Bank. He exhibits knowledge and
experience in Sustainability from his work
in the monetary entity and in the companies
in which he has been a director. In the area
of Cybersecurity, he has knowledge and
experience given that this is an issue of the
utmost relevance for the Central Bank, as
well as for the banks in which he has been a
director. In academia, he is a professor at the
Institute of Economics of the Universidad
Católica de Chile.
Other positions: He is a director of Banco
Santander Chile and Besalco S.A. He holds
the position of Senior Economist at the
Center for Public Studies and Research
Associate at the Mossavar-Rahmani
Center of the Harvard University School of
Government.
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SEPARATION OF FUNCTIONS
Pursuant to Article 49 of the Corporations
Law, the position of manager in publicly
traded corporations is incompatible with that
of director. This is set forth in article 17 of
our Bylaws.
BOARD OF DIRECTORS
SESSIONS AND ACTIVITIES
Board sessions
The Company's Board of Directors meets on a
monthly basis, in accordance with a previously
defined agenda. The topics to be discussed at
each meeting are determined in accordance
with the interests and needs of the Company,
and in order to cover all those matters that are
relevant to the development of the business.
The quorum for a Board meeting is determined
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 meeting, except in cases
where the law or the Bylaws require a higher
quorum, with the Chairman deciding the result
in the event of a tie.
During 2021, Board meetings were held through
technological means using the Microsoft Teams
platform. The foregoing, in accordance with the
provisions of General Rule No. 450 issued by
the CMF.
98.2%
AVERAGE ATTENDANCE IN 2021
DIVERSITY OF THE BOARD
OF DIRECTORS
GRI: 102-22, 405-1
The Company recognizes that diversity
in teams allows for complementarity in
understanding phenomena, identifying
opportunities and mitigating risks, in turn
enriching the decision-making process.
Diversity encourages different perspectives and
a greater ability to critically evaluate how we
operate our Company and interact with our
diverse stakeholders: the benefits of diversity
are key components of our long-term success.
Since April 2021 Coca-Cola Andina has a
Board of Directors Diversity Policy.
The purpose of this policy is to set out in
general terms the conditions and qualities
that should be considered by the Company's
shareholders in the proposals they make for
the position of director of Coca-Cola Andina,
it seeks to mitigate possible gender, social or
cultural barriers that could somehow inhibit
the natural diversity of skills, experiences,
visions, characteristics and conditions that
should prevail in the Company's Board of
Directors, which allow to better ensure the
sustainability of the business and add value in
the long term.
Gender
Women
Men
Nationality
Chilean
Foreign citizens*
1
13
11
3
Age range
Seniority
0
Less than 30
Between 30 and 40 0
0
Between 41 and 50
Between 51 and 60
9
Between 61 and 70
4
More than 70
1
Less than 3 years
Between 3 and 6
Between 7 and 9
Between 10 and 12
More than 12
4
3
2
1
4
* Countries: Argentina (1), Brazil (1), Puerto Rico (1)
2021 Agenda
The Company's Board of Directors approved
its annual agenda in January 2021. This
agenda included various matters, such as
employee safety, interviews with external
and internal auditors, financial, technology,
sustainability and risk issues, and the progress
of the Company's main operations, among
others. Likewise, at the aforementioned Board
meeting, the dates of the meetings at which
each of these matters would be discussed were
approved. Finally, it was noted that the agenda
does not exclude the possibility of including
additional matters if necessary or advisable.
In the March and June 2021 sessions, the
Board of Directors met with the Sustainability
and Risk area. In March, the Integrated
Annual Report was presented, highlighting
the greater integration of the business strategy
and the sustainability strategy; while in the
June session the progress in the management
of environmental, social and governance issues
was presented, in addition to the management
of the main risks, such as information security
and those associated with climate change
(water resources).
In the March and August 2021 sessions, the
Board of Directors met with Internal Audit.
Meetings with the external audit firm
Our Board of Directors met in February,
April and July of 2021 with the external
audit firm. 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 at four Board meetings.
The presence of the Company's senior
executives at these meetings is analyzed on a
case-by-case basis, depending on the matter
to be discussed.
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Induction and Training
We have an induction procedure for new
directors. This procedure consists of the Chief
Executive Officer of the Company providing
each new director with an Induction Folder
containing documents and information on
various subjects within 15 days of taking
office. It also includes an explanation of
the duties of care, reserve, loyalty, diligence
and information that, according to current
legislation, are incumbent on each member
of the Board of Directors and defines what
for this Board is a conflict of interest in
accordance with the Company's Conflict of
Interest Policy. In addition, the induction of
new directors includes interviews with the
company's main executives.
Additionally, we have a training mechanism
for Board members, which includes
lectures, presentations and the publication
of materials in the virtual library of the
Diligent Boards platform.
The Board of Directors is periodically
informed on matters of interest to them, both
by Management and by third-party experts.
During 2021, the Board received information
on directors' liability, the new rules on market
transparency, the Foreign Corrupt Practices Act
of the United States of America (FCPA) and
the new economic crime bill.
Expenses
For the year ended December 31, 2021, the
Board of Directors incurred expenses of
CLP 412,403,920, which were related to
audits and legal advice, among other items.
The Board of Directors has not incurred in
expenses for consulting services that, due to
their amount, are relevant with respect to its
annual budget.
Board of Directors' Compensation
GRI: 102-35; 102-36, 102-37
Board
Compensation
Executive
Committee
Directors' and SOX
Audit Committee
CLP million
CLP million
CLP million
Culture, Ethics
and Sustainability
Committee
CLP million
Total
CLP million
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
Juan Claro González1
Salvador Said Somavía
Arturo Majlis Albala2
Carmen Roman3
Domingo Cruzat4
Eduardo Chadwick Claro
Enrique Rapetti5
Felipe Joannon Vergara
Georges De Bourguignon Arnt
Gonzalo Parot Palma6
Gonzalo Said Handal
Jose Antonio Garces Silva
Marco Antonio Fernandes De Araujo
María Del Pilar Lamana Gaete7
Mariano Rossi
Roberto Mercadé Rovira
Rodrigo Vergara Montes
144
72
54
72
24
72
72
72
72
72
51
72
72
72
72
144
72
60
51
72
72
72
72
72
72
72
21
72
72
72
85
24
24
72
54
72
85
17
72
72
85
85
24
24
24
7
8
9
9
9
144
168
108
144
24
72
72
96
144
144
51
96
72
72
72
144
181
68
68
165
72
72
96
165
165
72
28
72
72
72
Total gross
1,065
1,068
342
339
72
72
34
1,479
1,513
1. Includes an additional CLP 72 million as Chairman of the Board of Directors.
2. Left the Board in September 2020.
3. Joined the Board of Directors in March 2021.
4. Joined the Board of Directors in April 2020.
5. Left the Board in April 2020.
6. He is an independent director of the Company, in accordance with current regulations.
7. Left the Board in April 2021.
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COMMITTEES
GRI: 102-20,102-22, 102-24, 102-26;
102-29; 102-32; 102-33
EXECUTIVE COMMITTEE
Date created
It was created at a meeting of the Board of
Directors on April 22, 1986.
Objectives
Its duty is to oversee the general progress of
the corporate business and exercise control
over operations on an ongoing basis and
through periodic meetings, in addition to
proposing guidelines for the administration
of the corporate business.
Members
It is currently comprised of:
∙ Mr. Eduardo Chadwick Claro
∙ Mr. José Antonio Garcés Silva
∙ Mr. Gonzalo Said Handal
∙ Mr. Salvador Said Somavía
∙ Mr. Juan Claro González
∙ Mr. Miguel Ángel Peirano
Sessions
This Committee meets monthly throughout
the year. In 2021, 12 sessions were held, all of
them virtually.
Expenses
During 2021, this Committee did not incur
any expenses.
CULTURE, ETHICS AND
SUSTAINABILITY COMMITTEE
Members
It is currently comprised of:
Date created
This committee was created by the Board of
Directors on January 28, 2014.
Objectives
Among its duties and responsibilities are to
monitor, identify and adopt the necessary
measures so that the activities of all Andina
employees and executives adhere to the values
and principles defined by the Company's
Board of Directors.
Likewise, the Culture, Ethics and Sustainability
Committee of Embotelladora Andina S.A. has
among its functions the following:
∙ Establish and develop procedures to promote
the ethical conduct of people, as defined
in the Company's Code of Ethics and
Business Conduct.
∙ Establish mechanisms to disseminate the Code
of Ethics and Business Conduct, and general
ethical matters.
∙ Receive, know and investigate reports of
irregularities that are entrusted to it by the
Board of Directors, and recommend actions to
be taken in each of the cases. This Committee
is also empowered to propose amendments
or modifications to the Code of Ethics and
Business Conduct.
During the year 2021 and given the
importance that the Company assigns to
sustainability issues, the Culture, Ethics and
Sustainability Committee also monitored the
progress of compliance with the goals related
to the various material sustainability issues,
which are detailed in our materiality matrix
on page 19.
∙ Mrs. Carmen Román Arancibia,
Committee Chairman.
∙ Mr. José Antonio Garcés Silva
∙ Mr. Gonzalo Said Handal
∙ Mr. Eduardo Chadwick Claro
The Chairman of the Board of Directors is
an ex officio member of this Committee.
Sessions
The Culture, Ethics and Sustainability
Committee of Embotelladora Andina
S.A. meets monthly. During the year 2021
these sessions were conducted through
technological means, using the Microsoft
Teams platform. An annual agenda was
established in order to address each of the
Company's material issues. Each meeting
was attended by guests from the different
operations, who presented what had been
done in this area in the last five years and
established objectives for the main KPIs for
the year 2030 with their respective plans and
associated investments.
Additionally, the materiality update was
presented and approved in for
September 2021.
Expenses
During 2021 this Committee did not incur
any expenses.
Material issues addressed were:
May
June
July
August
September
October
6CORPORATEGOVERNANCE1325478910
SARBANES-OXLEY
AUDIT COMMITTEE
Date created
As required by the NYSE and the U.S.
SEC with respect to compliance with the
Sarbanes-Oxley Act, the Board of Directors
created the Audit Committee on July 26,
2005. The current Audit Committee was
elected at the Board meeting held on April
27, 2021.
Objectives
The Sarbanes-Oxley Audit Committee
is responsible for analyzing the financial
statements; supporting financial oversight and
accountability; ensuring that management
develops reliable internal controls; ensuring
that the Audit Department and independent
auditors respectively fulfill their roles; and
reviewing the Company's auditing practices.
Its composition and powers are set forth in the
Rules of the Sarbanes-Oxley Audit Committee,
which are available on our website.
Members
∙ Mr. Domingo Cruzat Amunátegui
∙ Mr. Gonzalo Parot Palma, Committee
Chairman
∙ Mr. Salvador Said Somavía
Domingo Cruzat Amunátegui and Gonzalo
Parot comply with the independence
standards provided by the Sarbanes-Oxley
Act, SEC and NYSE rules. In addition,
Gonzalo Parot was designated by the Board
of Directors as a financial expert as defined by
NYSE and Sarbanes-Oxley standards.
DIRECTORS’ COMMITTEE
Date of the last election
Pursuant to Article 50 bis of Law No. 18,046
on Corporations, and in accordance with
the provisions of Circular No. 1,956 of the
Financial Market Commission, the current
Directors' Committee was elected at the
Board of Directors' meeting held on April
27, 2021.
Members
∙ Domingo Cruzat Amunátegui
(independent director)
∙ Gonzalo Parot Palma (independent
director)
∙ Salvador Said Somavía
The Chairman of the Company's Directors'
Committee is Gonzalo Parot Palma.
Between April 26, 2018 and April 27, 2021,
the Directors' Committee was composed
of Gonzalo Parot Palma (as Chairman and
independent director), Pilar Lamana Gaete
and Salvador Said Somavía.
Activities
As provided in Article 50 bis of Law No.
18,046 on Corporations, we report on the tasks
implemented by the Directors' Committee of
Embotelladora Andina S.A. During the year
2021, the Committee developed, among others,
the following activities:
∙ Examination of reports of the external
auditors, the balance sheet and other
financial statements presented by the
Company's administrators, making a
statement regarding these prior to their
presentation to the shareholders for their
approval.
∙ Analysis and preparation of proposal to
the Board of Directors of names for the
external auditors and private risk rating
agencies, if any, that were proposed to the
respective Shareholders' Meeting.
∙ Examination of background information
regarding the operations referred to in
Title XVI of Law No. 18,046 and report on
such operations.
∙ Examination of remuneration systems and
compensation plans for managers, senior
executives and employees of the Company.
∙ Review of anonymous complaints.
∙ Review and approval of Report 20-F and
compliance with Rule 404 of the Sarbanes-
Oxley Act.
∙ Preparation of the Committee's proposed
operating budget.
∙ Review of Internal Audit reports.
∙ Periodic interviews with representatives of
the Company's External Auditors.
∙ Interview with Corporate Human
Resources Manager.
∙ Review of the budget of Operations
between Related Entities (Production Joint
Ventures).
∙ Review of Corporate Insurance.
∙ Review and approval of each press release
associated with Company communications.
∙ Review of Internal Control standards in the
four operations of the Company, including
Critical Risks in Accounting Processes,
Compliance with Corporate Policies, Tax
Contingencies, and status of Internal and
External Audit Observations.
∙ Analysis of Risk Management Model.
∙ Review of Crime Prevention Model Law
No. 20,393.
∙ Review of advances in Cybersecurity and
Information Technology.
∙ Review of legal proceedings and analysis of
contingencies.
∙ Review of tax situation.
∙ Analysis of possible improvements in
Corporate Governance.
∙ Preparation of Annual Management
Report.
Expenses
Finally, it is hereby reported that during the
year 2021 the Directors' Committee incurred in
expenses for CLP 312,800,108. These expenses
are related to advisory services provided in
antitrust and legal matters, among other
expenses.
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Sessions
The resolutions, agreements and organization
of the Sarbanes-Oxley Audit Committee are
regulated by the rules related to the meetings
of the Board of Directors and the Directors'
Committee of the Company. Since its creation,
the Sarbanes-Oxley Audit Committee has
met jointly with the Directors' Committee,
since their functions are very similar, and the
members of both committees are the same.
Expenses
Finally, it is hereby reported that during
2021 the Sarbanes-Oxley Audit Committee
did not incur any expenses.
INTERNAL AUDIT
Internal Audit is an independent and objective
assurance and consulting activity designed
to add value and improve the organization's
operations. It helps the Company to meet
its objectives by providing a systematic and
disciplined approach to evaluate and improve
the effectiveness of risk management, control
and governance processes.
At Coca-Cola Andina, Internal Audit reports
to the Board of Directors and the Audit
Committee. The main pillars of the
Department are:
∙ Process Audit.
∙ IT Audit (Cybersecurity, Ethical Hacking,
Business and Risk Impact Analysis).
∙ Fraud Prevention Program.
∙ Corporate Risk Matrix (Testing).
∙ Corporate Policy Audit.
∙ SOX (Testing).
∙ Anti-Corruption Model Design for Laws
(FCPA, Law N°20.393 of Chile and Law
N°27.401 of Argentina).
∙ Continuous monitoring of Strategic
Variables.
∙ Operational Audits (territorial coverage:
inventories, audits, etc.).
∙ Anonymous Complaints and Investigations
(EthicsPoint).
∙ Follow Up (Standardized Implementation
Follow Up Model).
6CORPORATEGOVERNANCE1325478910
PRINCIPAL EXECUTIVES: EXPERIENCE AND REMUNERATION
EXPERIENCE GRI: 102-20
MIGUEL ÁNGEL PEIRANO
Chief Executive Officer
JAIME COHEN
Chief Legal Officer
FERNANDO JAÑA
Chief Strategic Planning 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
Chief Executive Officer in 2011. Previously, he
was Senior Engagement Manager at McKinsey &
Company and was President of Coca-Cola Femsa
Mercosur.
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).
Industrial Civil Engineer from the 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,
Innovation and Projects Manager at Coca-Cola
Andina Chile, e-Commerce Manager at Cencosud
Supermercados and Logistics and Distribution
Manager at CCU. He has also worked as a teacher
and researcher at Universidad Adolfo Ibáñez.
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MARTÍN IDÍGORAS
Chief Processes and Information
Technology Officer
Bachelor's Degree in Systems from John F. Kennedy
University in Argentina, with a specialization in
Information Technology. He joined the Company
in 2018. Previously, he worked for 18 years at
Cencosud. During that time he served as CIO for
the Home Improvement Division (2015-2018),
Regional Manager Center of Expertise SAP (2014-
2015) and Regional CTO (2010-2014). He also
worked in different Technology positions in the
companies Correo Argentino and Arcor.
GONZALO MUÑOZ
Chief Human Resources Officer
ANDRÉS WAINER
Chief Financial Officer
RENATO BARBOSA
General Manager of
Coca-Cola Andina Brazil
FABIÁN CASTELLI
General Manager of
Coca-Cola Andina Argentina
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
the Universidad de Chile.
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 is Chief Financial Officer.
Previously, he was Development Manager at
Coca-Cola Andina Argentina, Administration and
Finance Manager at Coca-Cola Andina Chile and
Corporate Manager of Research and Development
at the Corporate Office.
Economist from the Universidade do Distrito
Federal, Brazil, with a specialization in Business.
Postgraduate in Business-FGV São Paulo, Brazil /
MBA Marketing FGV Rio de Janeiro, Brazil. He
joined the company in 2012 as General Manager
of Coca-Cola Andina Brazil. Before that he was
General Manager of Brasal Refrigerantes (Coca-
Cola bottler in the central-eastern part of Brazil).
Industrial Engineer from Universidad Nacional
de Cuyo, with specialization in the Management
Development Program at IAE, Argentina, and at
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 is also
Director of AdeS in Argentina, Vice President
of the Argentine Coca-Cola Manufacturers
Association (AFAC) and Member of the Argentine
Chamber of Soft Drinks Industry.
FRANCISCO SANFURGO
General Manager of Coca-Cola Paresa
JOSÉ LUIS SOLÓRZANO
General Manager Coca-Cola Andina Chile
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 at Comercial Dimetral
in Punta Arenas, Branch Manager of Citicorp Punta
Arenas and General Manager of Cervecería Austral
in Punta Arenas.
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.
6CORPORATEGOVERNANCE1325478910
In the case of the General Managers of the
operations, the main variables that affect
their bonus are EBITDA generated by their
operation in local currency; Consolidated
EBITDA in Chilean pesos; NARTD market
share; sustainability indicators (WUR; %
Return on NARTD volume and % Recycled
Resin in bottles in applicable operations);
People Safety; Talent and succession and
certain personal goals in the case that the
Chief Executive Officer of the Company so
determines. The General Managers repeat
to their direct reports the corresponding
indicators, considering the nature of each
line manager's function.
Finally, in the case of Corporate Managers,
the main variables affecting bonuses are
the Consolidated EBITDA in Chilean
pesos and certain personal goals in the
event that the Chief Executive Officer of
the Company so determines.
In the particular case of those Principal
Executives who by the nature of their
position are directly related to the
Company's investors, there is a performance
bonus payment scheme that is partially
deferred over four years and indexed to the
Company's share price.
Finally, within the compensation structure
for certain Senior Executives there are
permanence bonuses, which are paid on a
certain basis upon completion of the agreed
terms of service.
For the year ended December 31, 2021,
the amount of fixed compensation paid to
Coca-Cola Andina's Principal Executives
amounted to CLP 4,401 million (CLP 4,858
million in 2020).
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On the other hand, the amount of
remuneration paid as a performance bonus
amounted to CLP 3,107 million (CLP 2,817
million in 2020).
During the years ended December 31, 2020
and 2021, no severance indemnities were
paid to the Company's Principal Executives.
On a consolidated level, the proportion that
represents the average gross base salary of all
executive women within the Company with
respect to executive men is 79.9%, while, for
the rest of the employees, the proportion of
the average gross base salary of women to
men workers is 98.0%1. For this calculation
of the salary ratio, we have worked with a
grouping of positions based on the Hay
Grades methodology. This methodology
considers the equivalent responsibility of
each position, so that the higher the Hay
Grade, the higher the compensation. In
addition, there are salary ranges for each
grade, so that salaries in the same position
are equivalent.
Given that in the group of executives in
general the participation of men in senior
management positions is higher, this situation
explains the salary gap in that group.
1. For this calculation, "executive" was considered to be all
personnel with Grade Hay 19 or higher.
DIVERSITY OF THE PRINCIPAL
EXECUTIVES
REMUNERATION
GRI 405-2.
Gender
Nationality
Age range
Seniority
Women
Men
Total
Chilean
Foreign citizens*
Total
0
10
10
6
4
10
Less than 30
0
Between 30 and 40 0
2
Between 41 and 50
5
Between 51 and 60
3
Between 61 and 70
0
More than 70
Total
10
Less than 3
Between 3 and 6
Between 7 and 9
Between 10 and 12
More than 12
Total
1
1
3
3
2
10
*Countries: Argentina (3), Brazil (1)
The Company's group of Principal
Executives consists of the Company's Chief
Executive Officer and his nine direct reports,
which are the Corporate Managers and the
General Managers of the operations.
In the case of the Principal Executives, the
compensation plans are composed of a fixed
remuneration and a performance bonus,
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 previously defined personal
goals of each Principal Executive and the
Company are met.
In the case of the Company's Chief
Executive Officer, the main variable affecting
his performance bonus is Consolidated
EBITDA.
6CORPORATEGOVERNANCE1325478910
We have a Risk Management Model that
reaches all operations and collaborators of
the Company. We promote a culture where
everyone is responsible for this management.
RISK MANAGEMENT MODEL
Our integral 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:
GOVERNANCE OF THE RISK MANAGEMENT PROCESS
The Board of Directors has overall responsibility for risk management, 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 Management Control, Risk and Corporate Sustainability Manager, who
reports to the Chief Financial Officer, is responsible for the overall coordination and monitoring of
the risk management process.
The structure that provides governance to the risk management process is as follows:
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GRI: 102-11, 102-29, 102-30, 102-31, 102-15
Continuous
monitoring and
surveying
Design of
the risk
management
strategy
Improvement and
implementation
of risk response plans
Approval of the
risk response
plan
Design of
structure,
policy and
methodology
Identification
and assessment
of risks and
mitigation plans
Critical
analysis,
benchmarking
and feedback
Operations
General managers and
their first line are in charge
of the proper management
of relevant risks, both at
the operation level as well
as at the level of their area
of responsibility.
Board of Directors and
Audit Committee
Its main duties include
safeguarding the value of
the Company against a
variety of risks, enhance risk
management culture, and to
know and understand the
relevant risks.
Corporate
Sustainability and
Risks Committee*.
It must mitigate the
risks that may arise in
the development of the
Company's activities
and that may affect the
objectives laid down by the
Board of Directors.
Internal Audit
It reports to the Audit Committee and verifies
that mitigation actions are implemented.
Risk Management Committee
This 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 in charge of the
adequate management of the relevant
risks, both at Company level and at the
level of their area of responsibility.
*The Corporate Risk and Sustainability Committee is comprised of: Chief Executive Officer, Chief Legal Officer,
Chief Financial Officer, Chief Human Resources Officer, Chief Strategic Planning Officer, Management Control,
Risk and Corporate Sustainability Manager, as Executive Secretary.
6CORPORATEGOVERNANCE1325478910
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PRINCIPAL RISKS
GRI: 102-11, 102-29, 102-30, 102-31
MATRIX OF PRINCIPAL RISKS OF
OUR BUSINESS
The following are the main risks affecting
our business and their relationship to our
strategic pillars and material issues.
We understand that a risk is "emerging" when
it is new, emerging or growing in importance;
additionally, it is an external risk whose
potential impact is long-term, may affect a
large part of the Company and is specific to it.
Description
Impact
Related strategic
pillar
Related material
issue
Mitigation actions
Principal
risks
Failure to collect/
recycle containers
Not being effective
in the collection
for recycling of
containers.
The materialization of this risk
would affect our operational
continuity, our relationship with the
community and the environment,
and financial results.
Business impact:
∙ Sanctions, fines.
∙ Damage to corporate image.
∙ Negative exposure in media,
advertising and social media.
∙ Impact on sales.
Dependence on
relationship with
The Coca-Cola Company
Andina purchases
concentrate from
The Coca-Cola Company
pursuant to a bottling
and distribution
agreement.
The materialization of this risk
would affect our operational
continuity and financial results.
Business impact:
∙ Inability to access
The Coca-Cola Company's brands.
Value chain efficiency
and productivity
Sustainable packaging
Market leadership
Customer satisfaction
Market leadership
Customer satisfaction
• Promote consumption of
returnables.
• Dissemination of best practices
in internal waste management
and support for initiatives with
stakeholders.
• Communication of actions carried
out in own social media, third
parties and Coca-Cola Journey.
Joint planning process with
The Coca-Cola Company, coordination
of campaigns and launches, joint
execution of projects.
6CORPORATEGOVERNANCE1325478910
Description
Impact
Related strategic
pillar
Related material
issue
Mitigation actions
Principal
risks
Contamination from
waste
Contamination
derived from waste
treatment failures or
non-compliance.
The materialization of this risk
would affect our operational
continuity, our relationship with the
community and the environment,
and financial results.
Business impact:
∙ Sanctions, fines.
∙ Damage to corporate image.
∙ Negative exposure in media,
advertising and social media.
∙ Impact on sales.
Value chain efficiency
and productivity
Sustainable packaging
Portfolio diversity
We depend on
maintaining an
adequate diversity
of products to
satisfy the tastes
and demands of
customers and
consumers.
The materialization of this risk
would affect our relationship with
the community and financial results.
Impact on the business:
∙ Impact on sales.
Changes in brand
image and product
quality
EMERGING
Perception that the
products are not of
good quality or are
harmful to health,
affecting brand
image.
The materialization of this risk
would affect our relationship with
the community and financial results.
Business impact:
∙ Damage to corporate image.
∙ Negative exposure in the media,
advertising and social media.
∙ Impact on sales.
Market leadership
Customer satisfaction
Broad portfolio, channels
and geographies
Consumer well-being
Market leadership
Customer satisfaction
Broad portfolio, channels
and geographies
Consumer well-being
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∙ Comprehensive Waste Management
Program, which ensures the correct
conditioning and final disposal of
the waste generated in the plants.
∙ Periodic external audits of legal
compliance of industrial processes
and internal audits of legal
compliance.
∙ Contractor regulations include
environmental policies, supplier
audits and fines for non-compliance.
Constant development of products in
line with changes in the population's
consumption habits.
∙ Portfolio development: strengthen
healthy, low or sugar-free proposals.
∙ Delivery of nutritional information
of our products.
∙ Evaluations of brand reputation
perception, environmental and
community programs.
∙ Communication in own and third
party social media and Coca-Cola
Journey about the actions
carried out.
6CORPORATEGOVERNANCE1325478910
Description
Impact
Related strategic
pillar
Related material
issue
Mitigation actions
Principal
risks
Instability in the
supply and price of
certain raw materials
The price of certain
raw materials, such
as PET resin and
sugar, are volatile
and their supply
could eventually be
interrupted.
The materialization of this risk
would affect our operational
continuity and financial results.
Business impact:
∙ Increase in raw material costs.
∙ Interruption in the production of
some SKUs.
Failures in the
production and/
or distribution of
products
Our products are
not available to
customers and
consumers.
Water scarcity,
contamination and
poor water quality
Water is one of the
main inputs for our
products.
EMERGING
The materialization of this risk
would affect our operational
continuity and financial results.
Business impact:
∙ Damage to corporate image.
∙ Negative exposure in the media,
advertising and social media.
∙ Impact on sales.
The materialization of this risk
would affect our operational
continuity, our relationship with the
community and the environment,
and our financial results.
Business impact:
∙ Increase in production costs to
ensure the quality of the products
offered.
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∙ Promote the use of bottles with
rPET resin (recycled).
∙ Development of more suppliers
∙ Sugar price hedging
∙ Equipment preventive maintenance
plans and critical spare parts
policies.
∙ Finished product stock policy.
∙ Third-party management model:
comprehensive evaluation of
transportation suppliers.
∙ Securing stable sources of supply.
∙ Increase efficiency/reduce water use
in production.
Value chain efficiency
and productivity
Supplier chain
management
Market leadership
Customer satisfaction
Market leadership
Customer satisfaction
Value chain efficiency
and productivity
Water management
6CORPORATEGOVERNANCE1325478910
RISKS AND OPPORTUNITIES
ASSOCIATED TO CLIMATE
CHANGE (TCFD)
GRI: 201-2
During 2021 our Sustainability and Risk
Management areas, together with our partner
Corporate Citizenship, initiated a study
process under TCFD standards (Task Force on
Climate-related Financial Disclosures).
During the assessment, we identified
the physical and transitional risks and
opportunities that we could face as a result
of climate change under two scenarios in our
operations in the four countries.
We believe that the TCFD recommendations
are an important step towards establishing
a voluntary framework for disclosure and
reporting of climate-related risks; in 2021,
as a first step, we initiated the study and our
commitment is to continue through 2022
implementing the core elements of the four
pillars of TCFD, focusing on existing gaps
to move towards full compliance with the
disclosure standard.
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Selected scenarios for assessing potential climate change outcomes
A scenario with a gradual transition
to a low-carbon economy
A business-as-usual scenario to mitigate
global GHG emissions
Objective: to understand the potential risks
and opportunities for transition
Objective: understand the potential physical
risks and opportunities
IEA1 Sustainable Development Scenario
UN IPCC2 RCP8.53
> Describes a roadmap to achieve a target of a temperature
> Describes the worst-case scenario with elevated GHG
increase between 1.5ºC and 1.65ºC - aligned with the Paris
Agreement.
emissions throughout the 21st century.
> Projects a major transformation in the global energy
system, including technology, policy and market changes.
> Achieves global net zero by 2070.
> The scenario represents changes in atmospheric GHG
emission concentrations.
> The effects of this are projected in Global Climate Models
developed by scientific research institutes and used to
inform international policy making (e.g., the "COPs").
Partner:
1. IEA- lnternational Energy Agency
2. IPCC - lntergovernmental Panel on Climate Change
3. RCP - Representative Concentration Pathway
6CORPORATEGOVERNANCE1325478910
The analysis of the scenarios identified physical risks and opportunities associated with climate change and the transition to a low-carbon economy.
RISKS AND OPPORTUNITIES ASSOCIATED WITH CLIMATE CHANGE GRI 201-2
INGREDIENTS, INPUTS
AND PACKAGING
MANUFACTURING AND
PRODUCTION PLANTS
LOGISTICS AND
DISTRIBUTION
COLD EQUIPMENT
Physical risks and opportunities
Chronic: Climate changes limit availability of
raw materials.
Chronic: Decrease in productivity due to
extreme heat.
Chronic: Lack of river flow limits availability
of energy from hydroelectric sources.
Chronic: Water shortages.
Acute: Climate events generate disruption to the continuity of the value chain.
Products / Services: Increased demand for beverages due to higher temperatures.
Resilience: Participation in public-private initiatives for water scarcity solutions.
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Resilience: Better preparedness to adapt to climate change.
Transition risks and opportunities
Regulatory: Intensification of new or expanded regulations.
Technological: Prohibitive technology costs for decarbonization.
Market: Rising energy, raw material and input costs.
Reputational: Changing stakeholder perceptions.
Reputational: Water scarcity.
Resource Efficiency: Technology will become more accessible reducing costs and emissions.
Products / Services: Positive positioning against stakeholder expectations.
Resilience: Regulations in favor of returnability.
Risks
Opportunities
6CORPORATEGOVERNANCE1325478910
INFORMATION SECURITY &
CYBERSECURITY
Technological development has increased
the frequency and intensity of cyber-attacks,
as well as their tendency to focus on strategic
industrial sectors, implying a potential
risk of disruption to normal activities. In
addition, the COVID-19 pandemic has led
to an increase in these events worldwide.
This context has forced companies to
implement preventive measures to protect
their assets, improving and reinforcing their
cybersecurity protocols.
At Coca-Cola Andina, the Audit Committee
is responsible for setting the strategy, policies
and guidelines in accordance with national
and international standards, regarding risks
related to information security. In addition,
it must evaluate the scope and effectiveness
of the information security and cybersecurity
systems established by management.
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Cybersecurity infrastructure
The Company has continuity contingency
plans, which are tested periodically. In
addition, vulnerability analysis (pentesting)
is carried out by an independent third
party, including hacking simulations. In
addition, there is a telemetry system and an
expert detection and response team capable
of taking specific measures to neutralize
external and internal threats that could
affect the company.
Information Security MSA
(Measurements Systems Analysis)
Coca-Cola Andina's infrastructure and
information security services are outsourced
as part of the Service Organization Control
(SOC) and are audited and certified under
the reports of the ISAE 3402 attestation
standards, established by the International
Auditing and Assurance Standards Board
(IAASB), which are equivalent to the SSAE-
18 and AT-320 standards. Additionally, the
Company has an audited security framework
and a cybersecurity master plan that every
year introduces new controls and systems
to increase the company's cyber resilience
under the concept of a "Zero Trust" model.
Annually, Coca-Cola Andina reviews and
integrates into the processes the mitigation
measures related to the vulnerabilities
detected in the Ethical Hacking assessments
carried out each year.
MITIGATION ACTIONS
Cybersecurity Culture
To strengthen the information security
culture, in 2021 we developed the "Responsa.
digi_talidad" program, which consisted of
holding live events in each of our operations,
generating multiple awareness-raising
content and training on cybersecurity for
our employees. In addition, communications
and e-mails are sent on a permanent basis to
train and inform on information security /
cybersecurity concepts and threats.
In the specialized areas of IT and Legal,
specific trainings are carried out aimed at
managing the information security features
of the different software and services used,
considering the digital transformation
process that the Company is undertaking.
In 2020 and 2021, more than 400 hours of
training on Azure and AWS technology were
conducted.
Threat alert and reporting process
Each member of the Company is considered
responsible for safeguarding technology
assets from multiple threats. As stated in
the manual - and reports - incidents or
inquiries associated with cybersecurity
issues should be made to the cybersecurity@
koandina.com mailbox. The escalation
process and the cybersecurity alert email
channel are reinforced in all cybersecurity
communication and training materials.
Disciplinary processes and liabilities
Information security and cybersecurity are
not part of the performance evaluation of
Coca-Cola Andina's employees; however,
sanctions for improper use of technological
assets are indicated in the Internal Rules of
Order, Hygiene and Safety, where duties and
responsibilities are also described in detail.
Experience in the Board of
Directors and Audit Committee:
Mr. Salvador Said1 participates in the
Audit Committee and Mr. Rodrigo
Vergara2 in the Board of Directors, both
with knowledge and experience in risk and
cybersecurity matters.
1. Mr. Said has knowledge and experience in risk
management and cybersecurity due to his capacity as a
director of banks since 2011 and member of committees
related to that matter.
2. Mr. Vergara has knowledge and experience in risk
management and cybersecurity due to his functions in the
Central Bank and due to his background in other banks.
Executive level responsibility:
The Chief Information Security Officer
(CISO) is responsible for ensuring the
management and control of information
security and cybersecurity matters, in
addition to overseeing the risk position
through controls based on processes
and technology.
Management policies and procedures:
at the Company we are aware that cyber
risk can be a threat to the business, which
is why we have a cybersecurity strategy, a
Cybersecurity Policy, an Information Assets
Use Manual and multiple standards aimed
at increasing the company's level of
cyber resilience.
6CORPORATEGOVERNANCE1325478910
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7
Information for the market
7INFORMATION FOR THEMARKET1325468910
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Embotelladora Andina S.A. is an open stock
corporation, incorporated and operating
under Chilean law. As such, Embotelladora
Andina S.A. is subject to the rules of the
Securities Market Law, Law No. 18,045, and
the Corporations Law, Law No. 18,046, and its
Regulations, as well as the rules issued for this
purpose by the Chilean regulatory authority, the
Financial Market Commission (CMF).
As an 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 for this purpose by the Securities
and Exchange Commission and the New York
Stock Exchange.
In addition, our operations in Argentina,
Brazil, Chile and Paraguay are subject to and
must comply with the regulations applicable
specifically to the activities and businesses they
carry out, including those indicated below:
ARGENTINA
(i) National Law No. 18,284, Argentine
Food Code, which regulates everything
related to the production, importation, 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 all
matters related to the advertising of alcoholic
beverages.
BRAZIL
(i) Federal Law No. 8.918, of July 14, 1994, which
provides for the standardization, classification,
registration, production and inspection of
beverages, authorizing the creation of the
Intersectoral Commission on Beverages and
other measures; (ii) Federal Decree No. 6.871, of
June 4, 2009, which established regulations for
Federal Law No. 8. 918, of July 14, 1994, which
provided for the standardization, classification,
registration, production and inspection
of beverages; (iii) Decree-Law No. 986, of
October 21, 1969, which created the Basic Food
Standards; (iv) Decree-Law No. 7,841, of August
8, 1945, which created the Mineral Water Code;
(v) Federal Law No. 6. 437, of August 20, 1977,
which defines the violations to the federal
health legislation and establishes the respective
sanctions and takes other measures;
(vi) Resolution No. 23 of the Ministry of Health,
of March 15, 2000, which establishes the
Manual of Basic Procedures for the Registration
and Exemption from the Registration
Requirement of Relevant Products for the
Food Area; (vii) MAPA Resolution RDC N°27,
of August 6, 2010, and MAPA Resolution
RDC N°240, of July 26, 2018, which establish
categories of food and packaging exempted and
with mandatory sanitary registration;
(viii) MAPA DRC Resolution N°204, of July
6, 2005, which regulates the procedure for
petitions submitted for analysis by ANVISA's
technical sectors and repeals MAPA DRC
Resolution N°349, of December 3, 2003;
(ix) MAPA Normative Instruction N°72,
of November 16, 2018, which approves the
administrative requirements and procedures for
the registration of establishments and products;
and (x) MAPA Normative Instruction N°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
Facilities-SIPEAGRO.
CHILE
(i) Standards of the Food Sanitary
Regulations contained in Decree N°977 of
the Ministry of Health of 1997, and in the
Sanitary Code; (ii) Standards of the Mineral
Water Regulations contained in Decree
N°106 of the Ministry of Health of 1997,
Mineral Water Regulations; (iii) Law on
Nutritional Composition of Food and its
Advertising, Law N°20. 606; Decree N°13 of
the Ministry of Health, June 26, 2015, and
Law on Food Advertising, Law N°20,869;
(iv) Laws regulating the production,
elaboration, commercialization, sale and
consumption of alcoholic beverages,
Law N°18,455 and Law N°19,925; and
(v) Law establishing a framework for
waste management, extended producer
responsibility and promotion of recycling,
Law N°20,920.
PARAGUAY
(i) Law No. 836/80, Sanitary 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 which prohibits the sale of
alcoholic beverages to minors and prohibits
their consumption on public roads; and
(v) Executive Decree No. 1,635/99 and
Resolution of the Ministry of Public Health
and Social Welfare No. 643/12, which
regulate aspects related to the registration
of food products and their modifications,
among others.
7INFORMATION FOR THEMARKET1325468910
INCORPORATION DOCUMENTS
Embotelladora Andina S.A. is an open stock
corporation that was incorporated by public
deed dated February 7, 1946, executed
before the Notary Public of Santiago, Mr.
Luciano Hiriart Corvalán. An abstract of
this deed was recorded on page 768, No.
581, of the Commercial Registry of the Real
Estate Registry of Santiago in 1946 and was
published in the Diario Oficial (Official
Gazette) No. 20,413 on March 25, 1946. Its
bylaws were approved by Supreme Decree No.
1,364 on March 13, 1946, which is registered
on page 770, No. 582 of the Registry of
Commerce of the Real Estate Registry of
Santiago of 1946.
The last amendment to the bylaws was
approved by the Special Shareholders'
Meeting held on June 25, 2012, the minutes
of which were converted into a public deed
on July 12, 2012, before the Notary Office of
San Miguel of Mrs. Patricia Donoso Gomien.
An abstract of said deed is registered on page
49,151 No. 34,479 of the Commercial Registry
of the Real Estate Registry of Santiago of
2012 and was published in the Diario Oficial
(Official Gazette) on August 1, 2012.
Subsequently, by public deed dated October
14, 2013, granted at the Santiago Notary
Office of Mr. Eduardo Avello Concha, a
decrease in capital stock was recorded in
accordance with the provisions of Article 27
of the Corporations Law, Law No. 18,046.
An abstract of said deed was recorded in
the margin of the corporate registration
in the Commercial Registry of the Real
Estate Registry of Santiago, on October 16
of the same year. Accordingly, the capital
stock decreased by CLP 21,724,544 and was
divided into 473,289,301 Series A shares and
473,281,303 Series B shares.
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SUMMARY OF COMMENTS
AND PROPOSALS OF
SHAREHOLDERS AND THE
DIRECTORS' COMMITTEE
As provided in General Rule No. 30 of the
CMF and Article 74 of the Corporations Law,
Law No. 18,046, it is reported that neither
the Directors' Committee, nor shareholders
or groups of shareholders representing or
owning 10% or more of the issued shares
with voting rights, made comments or
proposals with respect to the Company's
business performance. Notwithstanding
the foregoing, the minutes of the 2021
General Shareholders' Meeting included the
comments made by all shareholders who
expressed their opinion during the course of
that meeting.
SHAREHOLDERS' MEETING
At Coca-Cola Andina we are concerned
about promoting the active participation of
all our shareholders, especially in the General
Shareholders' Meeting, where we annually
report on our management.
As a result of the COVID-19 crisis and in
accordance with what was informed to the
shareholders and the Financial Market
Commission (CMF), the Company's Board
of Directors approved that the General
Shareholders' Meeting of 2021 be held
remotely.
We seek to guarantee the remote
participation of all shareholders, using voting
mechanisms that duly ensure the identity
of the shareholders, and safeguard the
principles of simultaneity and secrecy of the
votes that were taken.
WE REACHED AN
ATTENDANCE QUORUM OF
85.27%
788,306,447
SHARES REPRESENTED
7INFORMATION FOR THEMARKET1325468910
In relation to communication with the
press, the Company has an External
Communications Policy that establishes
the procedure to follow in case of being
contacted by the media; additionally,
we have the advice of an external
communications agency.
As part of our continuous improvement
process, we receive a quarterly report,
prepared by an external consultant, which
includes an evaluation of the management
of the Investor Relations team, including
suggestions for improvements to be
implemented.
OUR GUIDING PRINCIPLES
PRINCIPLE OF TRANSPARENCY
The following information is available on
our website:
Quarterly financial information of the
Company
. Earnings Report.
. FECU: Financial Statements.
. Audio of the earnings conference call in
Spanish and its English transcription.
Corporate presentations of quarterly
results and others
Integrated Report.
20-F.
Key news, press releases and material
events.
Investor Relations team contact
information.
RELEVANT AND TIMELY
INFORMATION
We seek to provide timely information to
all our investors in order to keep them duly
updated regarding:
The operation and progress of the
Company.
Our future plans.
Other relevant facts
PRINCIPLE OF DUTY OF
CARE AND DILIGENCE
This principle refers to the care and control
tasks carried out by the Company to ensure
that the information provided to the
market is correct.
MAIN CHANNELS OF
COMMUNICATION WITH
THE MARKET
Our website.
The Investor Relations application,
available on the App Store and Google
Play.
Participation in local and international
conferences.
Requested conference calls.
One-on-one meetings: with all investors
and analysts upon request.
E-mail and telephone consultations.
On the occasion of the quarterly release
of financial results, the Investor Relations
area organizes an earnings conference call,
in which the Chief Executive Officer and
the Chief Financial Officer participate,
and questions from investors and market
analysts are accepted.
In addition, we have strengthened
communication with investors and
industry analysts through visits to our
production plants, distribution centers,
and market.
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MANAGEMENT METRICS
We had more than 250 contacts with analysts
and investors in 2021, with an average of 4.7
contacts per week. More than 30% of the
contacts involved the CEO or CFO of the
Company. In 2021, considering the COVID-19
pandemic situation, the total number of
contacts were virtual meetings.
Visits to the Company. Although we frequently
receive those analysts and investors who ask us
to hold group meetings, individual meetings or
visits to our production plants, in 2021, due to
the COVID-19 pandemic, it was not possible
to carry out visits of any kind in any of our
facilities. Additionally, for the same reason, the
General Shareholders' Meeting, which usually
takes place at the company's corporate offices
in Chile, was held virtually in 2021.
Quarterly teleconferences to analyze the
Company's results, where approximately
60 analysts and institutional investors from
around the world are connected.
Attendance at conferences organized by
major local and foreign investment banks,
where mainly institutional investors, portfolio
managers and market analysts are contacted.
In 2021, considering the COVID-19 pandemic
situation, all conferences were organized
virtually.
The company regularly organizes non-deal
roadshows to visit current or potential
investors in different financial centers
around the world, as well as our main
research analysts based in the United
States. In 2021, considering the COVID-19
pandemic situation, no non-deal
roadshows were held.
Our Investor Relations Department is
available to answer any questions about the
Company, either in English or Spanish, at
andina.ir@koandina.com.
GRI: 102-27; 102-33; 102-40; 102-41;
102-42; 102-43; 102-44
We promote the informed participation of all
our shareholders by ensuring equal treatment,
protecting and facilitating the exercise of
their rights, and guaranteeing equal treatment
and non-discrimination. We protect and
facilitate the exercise of their rights, along with
guaranteeing equal treatment to all of them,
including minority shareholders.
We have a dedicated Investor Relations area,
which seeks to build trusting and long-term
relationships with investors and potential
investors of the Company. Its mission is to
provide transparent, relevant, timely and
quality information to all investors, regardless
of their size, on the main strategic, financial
and operational issues, and our management
in ESG matters (environmental, social and
governance) in order to keep them duly
updated on the progress of the business.
We are committed to transparency in our
communication to investors, the market and
all interested parties. To this end, we provide
information according to their requirements,
ensuring that it is communicated in accordance
with the regulations established by the
Financial Market Commission in Chile and
the Securities and Exchange Commission in
the United States.
7INFORMATION FOR THEMARKET1325468910
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PRICE OF SHARES TRADED IN CHILE
The following graph shows the evolution of the prices of the Company's Series A and B shares and
the IPSA, for a two-year period ending December 31, 2021 (100 basis).
120.00
100.00
80.00
60.00
40.00
20.00
MARKETS IN WHICH OUR
SHARES ARE TRADED
The capital stock of Embotelladora Andina
S.A. at December 31, 2021 amounts to CLP
270,737 million divided into 473,289,301 Series
A shares and 473,281,303 Series B shares, which
are traded on stock exchanges in Chile and
the United States (New York) in the form of
American Depositary Receipts (ADR).
jan
20
apr
20
jul
20
oct
20
jan
21
apr
21
jul
21
oct
21
Andina A
Andina B
IPSA
The Company's shares have been traded on
the Santiago Stock Exchange since 1955.
The Company's registration number in the
Securities Registry is 00124. In 1997,
Coca-Cola Andina carried out a stock split
into Series A and B shares.
The mnemonic codes for the Santiago Stock
Exchange are Andina-A and Andina-B. The
stock department in Chile is SerCor.
The Company's ADRs have been traded on
the New York Stock Exchange since 1994.
One ADR is equivalent to six common
shares. In 1997 Coca-Cola Andina carried
out a stock split into Series A and B shares.
The mnemonic codes for the NYSE are
AKO/A and AKO/B. The depositary bank
for the ADRs is The Bank of New York
Mellon.
PRICE OF SHARES TRADED ON THE NEW YORK STOCK EXCHANGE
The following graph shows the evolution of the prices of the Company's Series A and B ADRs
and the Dow Jones Index, for a two-year period ending December 31, 2021 (100 basis).
120.00
100.00
80.00
60.00
40.00
20.00
jan
20
apr
20
jul
20
oct
20
jan
21
apr
21
jul
21
oct
21
AKO/A
AKO/B
Dow Jones
7INFORMATION FOR THEMARKET1325468910
AVERAGE PRICE AND AMOUNT TRADED
2021
Shares
traded
(million)
ANDINA - A
Total
traded
(million CLP)
Average
price
(CLP)
Bolsa de
Comercio
de Santiago
1st quarter
12.40
2nd quarter
3rd quarter
4th quarter
Bolsa
Electrónica
de Chile
1st quarter
2nd quarter
3rd quarter
4th quarter
3.30
7.00
2.30
0.18
0.03
0.43
0.01
20,482
5,186
10,836
3,462
305
52
635
19
1,664
1,542
1,515
1,487
1,713
1,601
1,487
1,494
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Shares
traded
(million)
134.10
275.60
78.10
78.20
3.30
4.20
2.70
3.90
ANDINA - B
Total
traded
(million CLP)
Average
price
(CLP)
259,514
467,972
107,753
134,369
6,437
7,121
4,689
6,717
1,936
1,713
1,760
1,721
1,923
1,710
1,738
1,713
Source: Certificate from the respective stock exchanges
2021
AKO/A
AKO/B
ADRs
traded
(million)
Total
traded1
(million US$)
Average
price
(US$)
ADRs
traded
(million)
Total
traded1
(million US$)
Average
price
(US$)
The New York
Stock
Exchange
1st quarter
2nd quarter
3rd quarter
4th quarter
0.1
0.1
0.1
0.1
1.3
1.7
0.8
1.0
13.9
13.0
11.7
10.6
0.4
2.0
0.7
1.1
6.6
29.4
9.8
13.9
16.0
14.4
13.7
12.5
1. Total traded calculated as the average price times volume of ADRs traded. Source: Bloomberg
7INFORMATION FOR THEMARKET1325468910
DIVIDEND POLICY AND DIVIDENDS PAID
Our current dividend distribution policy considers distributing at least 30% of net income for the year.
Historically, the Company has paid dividends in the form of interim dividends and a final dividend,
after approval in April by the General Shareholders' Meeting following the end of the fiscal year.
Since 2000, Coca-Cola Andina has paid additional dividends annually, as approved at the General
Shareholders' Meeting.
Year/month
Dividend type
Series A 1
Series B 1
Total paid 2
January 2021
Interim
26.00
28.60
25,841
May 2021
Final
26.00
28.60
25,841
August 2021
Additional
26.00
28.60
25,841
October 2021
Interim
29.00
31.90
28,823
107.00
117.70
106,347
GRI: 102-18
TOTAL SHARES
SERIES A
473,289,301
100.60
110.66
99,986
SERIES B
473,281,303
86.00
94.60
85,476
86.00
94.60
85,476
76.00
68.00
83.60
74.80
75,536
67,584
54.00
59.40
53,671
52.40
57.64
52,080
Total 2021
Total 2020
Total 2019
Total 2018
Total 2017
Total 2016
Total 2015
Total 2014
1. CLP per share.
2. Million nominal CLP
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SERIES OF SHARES
Series A and Series B shares differ principally
in their voting and economic rights. While
Series A shares are entitled to elect 12 of the
14 directors, Series B shares are entitled to
elect two of the 14 directors and to receive any
and all dividends per share distributed by the
Company, whether interim, final, mandatory
minimum, additional or contingent, increased
by 10%. The preferences of the Series A and
Series B shares will last for the term expiring
on December 31, 2130. Upon expiration
of this term, the Series A and B shares will
be eliminated and the shares comprising
them will automatically be transformed into
common shares without any preference,
eliminating the division into series of shares.
TOTAL SHAREHOLDERS
2,414
SERIES A
772
SERIES B
1,642
7INFORMATION FOR THEMARKET1325468910
COMPANY OWNERSHIP
Series A
Ownership %
Series B
Ownership %
Total
Ownership %
Controlling
Group 1
262,148,781
55.4%
98,161,933
20.7%
360,310,714
38.1%
Others
112,373,737
23.7%
314,898,352
66.5%
427,272,089
45.1%
Coca-Cola 2
69,348,241
14.7%
-
0.0%
69,348,241
26,732,426
5.6%
40,810,868
8.6%
67,543,294
Chilean
Pension
Funds
7.3%
7.1%
ADRs
2,686,116
0.6%
19,410,150
4.1%
22,096,266
2.3%
Total
473,289,301
100.0%
473,281,303
100.0%
946,570,604
100.0%
1. See description of the Controlling Group in the following section.
2. Considers the direct and indirect ownership interest that Coca-Cola de Chile S.A. has in Embotelladora Andina S.A.
None of the senior executives has any ownership interest in the Company.
TWELVE PRINCIPAL SHAREHOLDERS
RUT °
Series A
Series B
Total
shares
Ownership
(%)
INVERSIONES CABILDO SPA*
76062133-1 65,487,786
36,950,863 102,438,649
10.82%
INVERSIONES SH SEIS LIMITADA*
76273760-4 65,489,786
25,164,863 90,654,649
9.58%
COCA-COLA DE CHILE S.A.
96714870-9 67,938,179
-
67,938,179
7.18%
BANCHILE CORREDORES DE
BOLSA S.A.
96571220-8
1,151,824
67,673,772 68,825,596
7.27%
INVERSIONES NUEVA DELTA S.A.*
76309233-k 58,927,056
-
58,927,056
6.23%
BANCO DE CHILE ON
BEHALF OF STATE STREET
33338812-k
-
43,916,983 43,916,983
4.64%
BANCO SANTANDER - JP MORGAN
33338330-6
6,781,568
30,683,789 37,465,357
3.96%
BANCO DE CHILE
ON BEHALF OF THIRD PARTIES
INVERSIONES PLAYA
AMARILLA SPA*
BTG PACTUAL CHILE S.A.
CORREDORES DE BOLSA
33338248-2
7,436,526
25,750,082 33,186,608
3.51%
76273887-2 16,689,895
8,513,594 25,203,489
2.66%
84177300-4 18,642,905
10,474,414 29,117,319
3.08%
THE BANK OF NEW YORK MELLON 33338454-k
2,686,116
19,410,150 22,096,266
2.33%
LARRAIN VIAL S.A.
CORREDORA DE BOLSA
80537000-9 2,016,636
19,607,882 21,624,518
2.28%
* Company related to the Controlling Group
° Chilean Tax ID.
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CONTROLLING GROUP
Embotelladora Andina S.A. ("Andina")
is controlled by the following group of
individuals and legal entities:
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”).
Under the Agreement, SH6 owns
65,489,786 Andina Series A shares, Cabildo
owns 65,487,786 Andina Series A shares,
Nueva Delta owns 58,927,056 Andina
Series A shares and Nueva Delta Dos owns
3,574,999 Andina Series A shares, Playa
Amarilla owns 16,689,895 Andina Series
A shares held directly and 637,205 Andina
Series A shares held in custody of Larraín
Vial S.A. Corredores de Bolsa, and each of
Don Alfonso, Campanario, Los Robles and
Las Niñas Dos owns 12,089,074 Andina
Series A shares.
The final controllers of the aforementioned
companies are the persons and management
representatives indicated below.
7INFORMATION FOR THEMARKET1325468910
SHAREHOLDERS OR PARTNERS OF
THE COMPANIES THAT ARE PART OF
THE CONTROLLING GROUP:
1. SH6: Inversiones SH Seis Limitada,
Rut 76.273.760-4. This company is
owned directly and indirectly by:
(a) Inmobiliaria e Inversiones Punta Larga
Limitada, Rut 96.580.490-0, holder of
14.2069% of the capital stock. This company
is 99.92% owned directly by Jaime Said
Handal, Rut 4.047.015-8;
(b) Inversiones Bullish Limitada, Rut
76.167.252-5, holder of 14.2069% of the
capital stock. This company is 97.2873%
owned indirectly by Gonzalo Said Handal,
Rut 6.555.478-K;
(c) Inversiones Berklee Limitada, Rut
77.077.030-0, holder of 14.2069% of
the capital stock. This company is 99%
owned directly by Javier Said Handal, Rut
6.384.873-5;
(d) Inversiones Harvest Limitada, Rut
77.077.250-8, holder of 14.2069% of the
capital stock. This company is 69.66%
owned directly by Bárbara Said Handal, Rut
4.708.824-0;
(e) Inversiones Oberon Limitada, Rut
76.126.745-0, holder of 14.2069% of the
capital stock. This company is 90.0885%
owned indirectly by Marisol Said Handal,
Rut 6.384.872-7;
(f) Inversiones Rinascente Limitada, Rut
77.077.070-K, holder of 14.2069% of the
capital stock. This company is 94.0580%
owned directly by Cristina Said Handal, Rut
5.522.896-5;
(g)Jaime, Gonzalo, Javier, Bárbara, Marisol
and Cristina Said Handal, each hold
0.00006175% of the capital stock; and
(h) Inmobiliaria Pro Seis Limitada, Rut
76.268.900-6, holder of 14.7581% of the
capital stock. This company is indirectly
owned in equal parts by each of Jaime,
Gonzalo, Javier, Barbara, Marisol and
Cristina Said Handal.
2. Cabildo: Inversiones Cabildo SpA, Rut
76.062.133-1. The direct and indirect
property of this company is:
(a) Inversiones Delfín Uno S.A., Rut
76.005.604-9, holder of 2.13% of the capital
stock. 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, holder of 2.13% of the capital
stock. 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, holder of 38.30% of the capital
stock. This company is 100% owned by
Salvador Said Somavía, Rut 6.379.626-3;
(d) Inversiones Delfín Cuatro SpA., Rut
76.005.582-4, holder of 19.15% of the capital
stock. This company is 100% owned by Isabel
Said Somavía, Rut 6.379.627-1;
(e) Inversiones Delfín Cinco SpA., Rut
76.005.503-4, holder of 19.15% of the capital
stock. 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, holder of 19.15% of the capital
stock. This company is 100% owned by Loreto
Said Somavía, Rut. 6.379.629-8.
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. This company is directly
and indirectly owned by:
(a) 7.01% held by José Antonio Garcés Silva
(senior), Rut 3.984.154-1, who also maintains
political rights through a special series of
shares in the parent company;
(b) 1.34% held by María Teresa Silva Silva,
Rut 3.717.514-5;
(c) 18.33% held by María Teresa Garcés Silva,
Rut 7.032.690-6;
(d) 18.33% held by María Paz Garcés Silva,
Rut 7.032.689-2;
(e) 18.33% held by José Antonio Garcés Silva
(junior), Rut 8.745.864-4;
(f) 18.33% held by Matías Alberto Garcés
Silva, Rut 10.825.983-3; and
(g) 18.33% held by 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
(the 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, Rut 76.273.887-2, 100% owned
by Las Gaviotas SpA, whose final controller
(as representative for management) is Andrés
Herrera Ramírez, RUT 3.245.544-1.
6. Don Alfonso: Inversiones Don Alfonso
Limitada, RUT 76.273.918-6, 73.40437%
owned by María de la Luz Chadwick
Hurtado, RUT 5.669.689-K, 0.05062%
owned by Carlos Eugenio Lavín García-
Huidobro RUT 4.334.605-9 and 26.54501%
owned by Inversiones FLC Limitada
(99.5% controlled by Francisco José Lavín
Chadwick, RUT 10.673.048-2), whose final
controller is María de la Luz Chadwick
Hurtado (as representative for management).
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8. Los Robles: Inversiones Los Robles
Limitada, Rut 76.273.886-4, 0.107735% owned
by Felipe Tomás Cruzat Chadwick RUT
13.689.123-5, 0.107735% owned by Carolina
María Errázuriz Chadwick RUT 16.369.519-7,
0.107735% owned by Jacinta María Errázuriz
Chadwick RUT. 17.408.873-k, 33.22559833%
owned by Inversiones Bocaleón Limitada
(99.9902% controlled by Felipe Tomás
Cruzat Chadwick), 33.22559833% owned by
Inversiones Las Dalias Limitada (99.993%
controlled by Carolina María Errázuriz
Chadwick) and 33.22559833% owned
by Inversiones Las Hortensias Limitada
(99.9903% controlled by Jacinta María
Errázuriz Chadwick), whose fnal controller
(as administrator) is María Carolina
Chadwick Claro, C.N.I. 7.011.443-7.
9. 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, RUT 17.403.673- K, Magdalena María
Chadwick Braun, RUT 17.701.220-3, María
José Chadwick Braun, RUT 18.023.409-8
and Alejandra María Chadwick Braun,
RUT 19.245.122-1, whose fnal controller (as
representative for management) is Eduardo
Chadwick Claro, RUT 7.011.444-5.
7. Campanario: Inversiones El Campanario
Limitada, Rut 76.273.959-3, 86.225418%
owned by María Soledad Chadwick Claro,
RUT 7.011.445-3, 6.888107% owned by
Inversiones Melita Limitada (99.99%
controlled by Josefna Ditborn Chadwick
RUT 13.831.761-7) and 6.886475% owned
by Inversiones DV Limitada (99.99%
controlled by Julio Dittborn Chadwick, RUT
15.382.118-6), whose final controller is María
Soledad Chadwick Claro (as administrator).
7INFORMATION FOR THEMARKET1325468910
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The agreement is formalized by means of a
private instrument subscribed between its
parties and has an indefinite term.
In connection with The Coca-Cola Company's
investment in Andina, The Coca-Cola Company
and the Controlling Group entered into a
shareholders' agreement on September 5, 1996,
providing for certain restrictions on the transfer
of Andina's capital stock by the Controlling
Group.
Specifically, the Controlling Group is restricted
from transferring its Series A shares without the
prior authorization of The Coca-Cola Company.
This shareholders' agreement also provides for
certain corporate governance matters, including
the right of The Coca-Cola Company to elect two
of our directors, as long as The Coca-Cola
Company and its subsidiaries collectively own a
certain percentage of our Series A shares.
In addition, in related agreements, the
Controlling Group granted The Coca-Cola
Company an option, exercisable upon
certain changes in the Controlling Group's
beneficial ownership, to acquire 100% of the
Controlling Group's Series A shares at a
price and in accordance with the procedures
set forth in those agreements.
RELEVANT CHANGES IN SHARE
OWNERSHIP IN 2021
During 2021, there were no relevant changes
in the Company's share ownership.
THE ONLY SHAREHOLDER, OTHER
THAN THE CONTROLLING GROUP,
THAT EXCEEDS A 10% INTEREST IN
ANDINA'S SERIES A SHARES IS:
Series A
Series B
Total shares
Coca-Cola
de Chile S.A.
69,348,241
Ownership
by Series
14.65%
-
-
1. Considers the direct and indirect ownership interest that
Coca-Cola de Chile S.A. has in Embotelladora Andina S.A.
JOINT ACTION AGREEMENT
The Controlling Group acts pursuant to a
joint action agreement entered into
between the parties (the "Agreement").
Under the Agreement, the Controlling
Group will jointly exercise control of the
Company to ensure a majority of votes
at shareholders' meetings and Board of
Directors' meetings. The resolutions of the
Controlling Group are approved by at least
three of the four parties, except for certain
matters requiring unanimity.
On the other hand, and subject to
compliance with the rules of the Securities
Market Law, the Agreement establishes put
options of each party with respect to the
others at a market price plus a premium of
9.9% and 25%, with exercise windows of 30
days in June of each year, and in June 2017
and 2027, respectively; and in the event that
all but one of the parties decide to sell, a
right of first call option for a term of one
year is regulated.
DIRECT OR INDIRECT OWNERSHIP IN ANDINA HELD BY MEMBERS OF THE
CONTROLLING GROUP OR THEIR RELATED PARTIES (INCLUDING SERIES A
AND SERIES B SHARES):1
Inversiones SH Seis Limitada
Estate of Jaime Said Demaría
Ownership by Series:
Inversiones Cabildo SpA
Estate of 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 Amarilla SpA
bajo custodia de Larraín Vial
Inversiones El Campanario Limitada
Inversiones Los Robles Limitada
Inversiones Las Niñas Dos SpA
Inversiones Don Alfonso Limitada
Eduardo Chadwick Claro
Ownership by Series:
Series A
65,489,786
-
13.8371%
65,487,786
-
13.8367%
58,927,056
3,574,999
2,985,731
-
13.8367%
16,689,895
637,205
12,089,074
12,089,074
12,089,074
12,089,074
63,327
13.8914%
Series B
25,164,863
49,600
5.3275%
36,950,863
49,600
7.8178%
-
-
12,978,583
49,600
2.7527%
8,513,594
315,939
-
6,638,363
-
7,450,928
63,327
4.8559%
1.Excludes the nominal interest of Inversiones Freire S.A. of 23 Series A shares of Andina and of Inversiones Freire Dos
S.A. of 4 Series A shares of Andina.
7INFORMATION FOR THEMARKET1325468910
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Our company
8OURCOMPANY1325679410
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EMBOTELLADORA
ANDINA S.A.
35.00%
59.27%
66.5%
99.9998%
Coca-Cola
Del Valle New
Ventures S.A.
Envases
Central S.A.
Vital
Aguas S.A.
Andina
Inversiones
Societarias S.A.
0.00011%
60.0%
Re-Ciclar S.A.
99.99%
0.01%
99.99%
0.00007%
99.9%
0.15%
99.9959%
0.0041%
0.10%
99.90%
0.00005%
99.99995%
0.063%
99.993%
50.0%
15.0%
50.0%
0.034%
64.423%
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.
35.543%
0.9157296%
0.07697%
99.99%
Embotelladora
del Atlántico S.A.
0.003%
99.07%
97.7533%
14.82%
Alimentos
de Soja S.A.
0.003%
Andina
Empaques
Argentina S.A.
99.975%
Note: On November 16, 2021, through a merger by absorption, the companies Abisa Corp and
Aconcagua Investing Ltd. were absorbed by Andina Bottling Investments Dos S.A. As a result,
the absorbed companies were dissolved.
Rio de Janeiro
Refrescos
Ltda.
Paraguay
Refrescos S.A.
33.33%
Circular-Pet
S.A.
Sorocaba Refrescos Ltda.
SRSA Participações Ltda.
Kaik Participações Ltda.
Leao Alimentos e Bebidas Ltda.
Trop Frutas do Brasil Ltda.
UBI 3 Participações Ltda.
40.00%
40.00%
11.32%
10.26%
7.52%
8.50%
Parent Company
Consolidating subsidiaries
Associates
Investments without
significant influence
Chile
Argentina
Brazil
Paraguay
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Board of Directors / Management
Council
Abelardo Gudino
Alfredo Mahana
Daniel Alejandro Rodriguez
Iliana Reza Gonzalez
Sergio Bernabé Giménez
Jorge Luis López
Fabián Castelli 2
Nicolás Bertelloni
David Lee
Flavio Mattos dos Santos (A)
Alexandre Fernandes Delgado(A)
Andrés Bartoluchi (A)
María Fernanda Causarano (A)
Ruben Sergio Coronel (A)
Fernando Ramos Meneghetti (A) 2
Marcela Menutti (A)
Esteban Eduardo Mele (A)
Graciela Paula Cuña (A)
General Manager
José Marquina
EMBOTELLADORA DEL
ATLÁNTICO S.A.°
ANDINA EMPAQUES
ARGENTINA S.A.°
Address
Ruta Nacional 19, Km 3.7, Córdoba
Address
Av. Roque Sáenz Peña 637 – Piso 1° - Ciudad
Autónoma de Buenos Aires
ALIMENTOS DE SOJA S.A.°
Address
Marcelo T. de Alvear 684, Piso 1°, Ciudad
Autónoma de Buenos Aires
CUIT
30-52913594/3
Telephone
(54-351) 496 8888
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 3,782,900 thousand
% the investment represents in the
Parent Company's assets
7.1%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
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
Gonzalo Manuel Soto 3
Fabián Castelli 2
Fernando Ramos 2
Laurence Paul Wiener (A)
General Manager
Fabián Castelli 2
CUIT
30-71213488-3
Telephone
(54-11) 4715 8000
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 2,472,553 thousand
% the investment represents in the
Parent Company's assets
0.6%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 99.98
Corporate purpose
Design, produce and commercialize plastic
products, mainly containers.
Commercial relationship
Supplier of plastic bottles and preforms.
Board of Directors / Management
Council
Gonzalo Manuel Soto 3
Fabián Castelli 2
Jaime Cohen 1
Laurence Paul Wiener(A)
General Manager
Daniel Caridi
CUIT
33-71523028-9
Telephone
(54-11) 5196 8300
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 11,791,620 thousand
% the investment represents in the
Parent Company's assets
0.5%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
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,
transformation processing, fractionation,
packaging, distribution of food products for
human consumption and beverages in general
and their raw materials and respective related
products and by-products, in their different
stages and processes.
Commercial relationship
Produces soy-based products for Coca-Cola
bottlers in Argentina.
° Corporation
* No variations in ownership have occurred
in the last year
1 Embotelladora Andina S.A. officer
2 Embotelladora del Atlántico S.A. officer
3 External counsel
(A) Alternate
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RIO DE JANEIRO REFRESCOS
LTDA.
Address
Rua André Rocha 2299, Taquara,
Jacarepaguá, Rio de Janeiro
KAIK PARTICIPAÇÕES LTDA.
Address
Av. Maria Coelho de Aguiar 215, bloco A, 1°
Andar, Jardim São Luis, São Paulo
LEÃO ALIMENTOS E BEBIDAS
LTDA
Address
Rua Paes Leme, nº 524 - 10º andar, São
Paulo, São Paulo
SOROCABA REFRESCOS LTDA.
TROP FRUTAS DO BRASIL LTDA.
Address
Rod.Raposo Tavares, Km 104, Jardim
Jaraguá, Sorocaba, São Paulo
Address
Avenida PRF Samuel Batista Cruz, 9853,
115.591.0060 M2, CEP 29909-900. Linhares.
Espirito Santo
CNPJ
40.441.792/0001-54
Telephone
(55-11) 2102 5563
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 151 thousand
% the investment represents in the
Parent Company's assets
0.0%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
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
45.913.696/0001-85
Telephone
(55-15) 3229 9930
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 8,858,676 thousand
% the investment represents in the
Parent Company's assets
0.9%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 40
Corporate purpose
Manufacture and commercialize food
and beverages in general, and beverage
concentrate. Invest in other companies.
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
CNPJ
07.757.005/0001-02
Telephone
(55-27) 21038300
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 59,503,818 thousand
% the investment represents in the
Parent Company's assets
0.1%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 7.52
Corporate purpose
Manufacture, commercialize and export
natural fruit pulp and coconut water and
manufacture dairy products.
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
Dairy Director
Luiz Henrique Lissoni
CNPJ
76.490.184/0001-87
Telephone
(55-11) 3809 5000
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 165,382,539 thousand
% the investment represents in the
Parent Company's assets
0.4%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 10.26
Corporate purpose
Manufacture and commercialize food
and beverages in general, and beverage
concentrate. Invest in other companies.
Commercial relationship
Produce sensitive products for the Coca-Cola
bottlers in Brazil.
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
CNPJ
00.074.569/0001-00
Telephone
(55-21) 2429 1779
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 119,168,159 thousand
% the investment represents in the
Parent Company's assets
9.2%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 99.99
Corporate purpose
Manufacture and commercialize beverages
in general, powdered juices and other related
semiprocessed 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 variations in ownership have occurred
in the last year
1 Embotelladora Andina S.A. officer
2 Rio de Janeiro Refrescos Ltda. officer
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SRSA PARTICIPAÇÕES LTDA.
UBI 3 PARTICIPAÇÕES LTDA.
EMBOTELLADORA ANDINA
CHILE S.A.°
VJ S.A.°
VITAL AGUAS S.A.°
Address
Rua Antonio Aparecido Ferraz, 795, Sala 01,
Jardim Itanguá, Sorocaba, São Paulo
Address
Rua Teonilio Niquine nº 30, Galpão B,
Jardim Piemonte, Betim, Minas Gerais
Address
Av. Miraflores 9153, Renca, Santiago
Address
Av. Américo Vespucio 1651, Renca, Santiago
Address
Camino a la Vital 1001, Comuna de Rengo
CNPJ
10.359.485/0001-68
Telephone
(55-15) 3229 9906
CNPJ
27.158.888/0001-41
Telephone
(55-21) 2559 1032
RUT
76.070.406-7
Telephone
(56-2) 2611 5838
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 3,027 thousand
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 1,579 thousand
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 27,278,206 thousand
% the investment represents in the
Parent Company's assets
0.0%
% the investment represents in the
Parent Company's assets
0.0%
% the investment represents in the
Parent Company's assets
1.7%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 40
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 8.50
Corporate purpose
Purchase and sale of real estate investments
and property management.
Commercial relationship
Business supporting company.
Board of Directors / Management
Council
Renato Barbosa2
Luiz Lacerda Biagi
General Manager
Cristiano Biagi
Corporate purpose
Invest in other companies with own
resources. Purchase and sale of real estate
investments and property management.
Commercial relationship
Produces soy-based products for Coca-Cola
bottlers in Brazil.
Board of Directors / Management
Council
Fernanda Paula Ruiz
Neuri Amabile Firgotto Pereira
Lia Marques Oliveira
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 99.99995
Indirectly: 0.00005
Corporate purpose
Manufacture, bottle, distribute and
commercialize non-alcoholic beverages.
Commercial relationship
Leasing of production infrastructure
Board of Directors / Management
Council
Miguel Ángel Peirano 2
Andrés Wainer 2
Jaime Cohen 2
General Manager
José Luis Solórzano 2
* No variations in ownership have occurred
in the last year
1 Embotelladora Andina S.A. officer
2 Rio de Janeiro Refrescos Ltda. officer
* No ownership variations during the last year
~ Company incorporated in 2021
° 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
RUT
93.899.000-K
Telephone
(56-2) 2620 4100
RUT
76.389.720-6
Telephone
(56-2) 23464245
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 20,675,167 thousand
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 4,331,154 thousand
% the investment represents in the
Parent Company's assets
0.8%
% the investment represents in the
Parent Company's assets
0.2%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 15.00
Indirectly: 49.9999
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 66.5
Indirectly: -
Corporate purpose
Manufacture, distribute and commercialize
all kinds of food products, juices and
beverages.
Corporate purpose
Manufacture, distribute and commercialize
all kinds of water and beverages in general.
Commercial relationship
Produce juices for Coca-Cola bottlers in
Chile.
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 Ormaechea 2 (A)
José Domingo Jaramillo (A)
General Manager
Alberto Moreno
Commercial relationship
Produce mineral water for Coca-Cola
bottlers in Chile.
Board of Directors / Management
Council
José Luis Solórzano 2
Alejandro Zalaquett ²
Andrés Wainer 2
José Domingo Jaramillo
Rodrigo Ormaechea ² (A)
Jaime Cohen ²(A)
Fernando Jaña ² (A)
Juan Pablo Valdés (A)
General Manager
Alberto Moreno
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COCA-COLA DEL VALLE NEW
VENTURES S.A.°
TRANSPORTES ANDINA
REFRESCOS LTDA.°°°
Address
Av. Miraflores 8755, Renca, Santiago
Address
Av. Miraflores 9153, piso 4, Renca , Santiago
TRANSPORTES POLAR S.A.°
Address
Av. Miraflores 9153, piso 4, Renca , Santiago
SERVICIOS MULTIVENDING
LTDA.°°°
ENVASES CMF S.A.°
Address
Av. Miraflores 9153, piso 4, Renca , Santiago
Address
La Martina 0390, Pudahuel, Santiago
RUT
76.572.588-7
Telephone
N/A
RUT
78.861.790-9
Telephone
(56-2) 2611 5838
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 84,442,238 thousand
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 12,620,629 thousand
% the investment represents in the
Parent Company's assets
1.1%
% the investment represents in the
Parent Company's assets
0.6%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 35
Indirectly: -
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 99.9959
Indirectly: 0.0041
Corporate purpose
Provide administration services and
management of local and foreign ground
transportation.
Commercial relationship
Provide ground transportation services.
Board of Directors / Management
Council
N/A
Corporate purpose
Manufacture, distribute and commercialize all
kinds of juices, water and beverages in general.
Commercial relationship
Produce water and juices for the Coca-Cola
bottlers in Chile.
Board of Directors / Management
Council
Miguel Ángel Peirano 2
José Luis Solórzano 2
Rodrigo Ormaechea 2
Cristián Hohlberg
José Domingo Jaramillo
Roberta Cabral Valenca
Iliana Rezas
Santiago Avella
Luis Felipe Avellar
María Sol Jares Canivas
Fernando Jaña ² (A)
Alejandro Zalaquett ² (A)
Rodolfo Peña ² (A)
Juan Paulo Valdés (A)
Anton Szafronov (A)
Alfredo Mahana Tumani (A)
Flavio Mattos dos Santos (A)
Jonathan Lamac (A)
María Paz Luna (A)
Natalia Otero (A)
General Manager
Alejandro Palma²
RUT
96.928.520-7
Telephone
(56-2) 2611 5838
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 1,619,315 thousand
% the investment represents in the
Parent Company's assets
0.2%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 99.99
Indirectly: 0.01
Corporate purpose
Freight transportation in general in the
beverage industry and other processed
goods.
Commercial relationship
Provide ground transportation services.
Board of Directors / Management
Council
José Luis Solórzano 2
Rodolfo Peña 2
Alejandro Zalaquett 2
General Manager
Alejandro Vargas 2
RUT
78.536.950-5
Telephone
(56-2) 2611 5838
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 862,248 thousand
% the investment represents in the
Parent Company's assets
0.0%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 99.90
Indirectly: 0.1
Corporate purpose
Commerciale products through equipment
and vending machines.
Commercial relationship
Provide commercialization of products
through vending machines.
Board of Directors / Management
Council
N/A
RUT
86.881.400-4
Telephone
(56-2) 2544 8222
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 32,981,986 thousand
% the investment represents in the
Parent Company's assets
0.8%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 49.9999
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
Andrés Vicuña
Cristián Hohlberg
Juan Paulo Valdés
Miguel Ángel Peirano 2
Andrés Wainer 2
Fernando Jaña 2
General Manager
Matías Mackenna
* No ownership variations during the last year
~ Company incorporated in 2021
° 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
8OURCOMPANY1325679410
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ENVASES CENTRAL S.A.°
Address
Av. Miraflores 8755, Renca, Santiago
RUT
96.705.990-0
Telephone
(56-2) 2599 9300
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 7,562,354 thousand
% the investment represents in the
Parent Company's assets
0.5%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 59.27
Indirectly: -
Corporate purpose
Manufacture and packaging of all kinds of
beverages and commercialize all kinds of
packaging.
Commercial relationship
Produce 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 2 (A)
Jaime Cohen 2 (A)
Fernando Jaña ² (A)
Juan Paulo Valdés (A)
Anton Szafronov (A)
María Paz Luna (A)
General Manager
Alberto Moreno
ANDINA BOTTLING
INVESTMENTS S.A.°
ANDINA BOTTLING
INVESTMENTS DOS S.A.°
ANDINA INVERSIONES
SOCIETARIAS S.A.°
RED DE TRANSPORTES
COMERCIALES LTDA.°°°
Address
Av. Miraflores 9153, piso 7, Renca, Santiago
Address
Av. Miraflores 9153, piso 7, Renca, Santiago
Address
Av. Miraflores 9153, piso 7, Renca, Santiago
Address
Av. Del Valle Norte 937, of. 351, Ciudad
Empresarial, Huechuraba
RUT
96.842.970-1
Telephone
(56-2) 2338 0520
RUT
96.972.760-9
Telephone
(56-2) 2338 0520
RUT
96.836.750-1
Telephone
(56-2) 2338 0520
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 311,727,582 thousand
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 466,474,897 thousand
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 30,082,325 thousand
% the investment represents in the
Parent Company's assets
30.5%
% the investment represents in the
Parent Company's assets
36.3%
% the investment represents in the
Parent Company's assets
1.3%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 99.90
Indirectly: 0.10
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 64.423
Indirectly: 35.577
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 99.9998
Indirectly: 0.0001
Corporate purpose
Manufacture, bottle and commercialize
beverages and food in general. Invest in
other companies.
Corporate purpose
To exclusively make permanent or income
investments abroad in all kinds of personal
property.
Commercial relationship
Investment vehicle.
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)
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
General Manager
Miguel Ángel Peirano 2
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
RUT
76.276.604-3
Telephone
(56-2) 29939704
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 2,200,314 thousand
% the investment represents in the
Parent Company's assets
0.1%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 99.85
Indirectly: 0.15
Corporate purpose
Freight transportation in general in the
beverage industry and other processed
goods.
Commercial relationship
Provide ground transportation services and
commercialize products.
Board of Directors / Management
Council
N/A
* No ownership variations during the last
year
~ Company incorporated in 2021
° 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
8OURCOMPANY1325679410
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COMERCIALIZADORA
NOVAVERDE S.A.°
Address
Carretera General San Martín Km. 16.5 Calle
Simón Bolivar, Sitio 19, Colina, Santiago
RUT
77.526.480-2
Telephone
(562) 24110150
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 14,856,772 thousand
% the investment represents in the
Parent Company's assets
0.2%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 0.00007
Indirectly: 34.9965
Corporate purpose
Process and commercialize 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
Roberta Cabral Valenca
María Sol Jares Canovas
Marcela Menutti
Fernando Jaña ² (A)
Alejandro Zalaquett ² A)
Flavio Mattos (A)
Alfredo Mahana Tumani (A)
Natalia Otero (A)
Juan Paulo Valdés (A)
General Manager
Crescente Valle
RE-CICLAR S.A. ~
PARAGUAY REFRESCOS S.A. °
CIRCULAR-PET S.A. ~
Address
La Martina 390, Pudahuel, Santiago
Address
Acceso Sur, Ruta Ñemby Km 3.5 -
Barcequillo - San Lorenzo, Asunción
Address
Avenida, Ruta Transchaco KM 15, casi
Senador Vazquez
RUT
77.427.659-9
Telephone
(56-2) 2544 8222
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 7,500,000 thousand
% the investment represents in the
Parent Company's assets
0.3%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 60
Indirectly: -
Corporate purpose
Produce, process and commercialize
recyclable materials.
Commercial relationship
Process and generate recycled PET resin
for the Coca-Cola bottlers in Chile, among
others.
Board of Directors / Management
Council
José Domingo Jaramillo
Cristián Hohlberg
Miguel Ángel Peirano 2
Andrés Wainer 2
Fernando Jaña ²
General Manager
Matias Mackenna
* No ownership variations during the last
year
~ Company incorporated in 2021
° 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
RUT
80.003.400-7
Telephone
(595) 21 959 1000
RUT
80.116.031-6
Telephone
(595) 21 752 820
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 9,904,604 thousand
Paid-in and subscribed capital
(at 12/31/21)
CLP$ 5,152,203 thousand
% the investment represents in the
Parent Company's assets
10.4%
% the investment represents in the
Parent Company's assets
0.0%
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: 0.076
Indirectly: 97.6555
% that the Parent Company holds
in the Capital of the subsidiary or
associate *
Directly: -
Indirectly: 32.666
Corporate purpose
Manufacture and commercialize post-
consumer recycled PET resins from the
transformation of PET flakes.
Commercial relationship
Produce post-consumer PET resins to be
used by the bottling plant.
Board of Directors / Management
Council
Felipe Carlos Resck
Francisco Sanfurgo 2
Carlos José Mangabeira
Carlos Hernan Rodiño (A)
Eduardo Yulita 2 (A)
Juan Daniel Gill (A)
General Manager
Silvino Sforza
Corporate purpose
Manufacture, distribute and commercialize
sparkling and still 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
° Corporation
~ Company incorporated in 2021
* No ownership variations during the last
year
1 Embotelladora Andina S.A. officer
2 Paraguay Refrescos S.A. officer
(A) Alternate
8OURCOMPANY1325679410
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ARGENTINA
EMBOTELLADORA DEL ATLÁNTICO S.A.
Operation
Main use
Mts2
Own
/Leased
Encumbrances
Operation:
Andina / Third Party
Distribution Center / Warehouses
600
Third Parties
0
Andina executed by third party
Offices / Production of Soft Drinks / Distribution Center / Warehouses
102,708
Own
Encumbrance Free
Azul
Bahía Blanca
Bahía Blanca
Bahía Blanca
Bahía Blanca
Bahía Blanca
Bariloche
Bialet Masse
Bragado
Carlos Paz
Warehouses (Don Pedro)
Commercial Office
Real Estate (parking lot)
Warehouses (M&F Palletizer -EDF deposit)
Offices / Distribution Center / Warehouses
Real Estate
Commercial Office
Commercial Office
Carmen de Patagones
Commercial Office / Warehouses / Crossdocking
Chacabuco
Chivilcoy
Chivilcoy
Offices / Distribution Center / Warehouses
Distribution Center / Warehouses
Commercial Office
Comodoro Rivadavia
Offices / Distribution Center / Warehouses
Concepcion del Uruguay Commercial Office
Concordia
Córdoba
Commercial Office / Third party Distribution Center / Warehouses
Offices / Production of soft drinks and other still beverages / Distribution Center / Warehouses / Real estate 959,585
Córdoba (San Isidro)
Deposit and Offices
Córdoba
Córdoba
Córdoba
Deposit (Rigar)
Deposit (Ricardo Balbín)
Commercial Office (Dinosaurio Mall Alto Verde)
Coronel Suarez
Offices / Third party Distribution Center / Warehouses / Deposit
General Pico
General Roca
Gualeguaychu
Offices / Distribution Center / Warehouses
Distribution Center / Warehouses
Commercial Office / Warehouses
Junin (Buenos Aires)
Cross Docking
Junin (Buenos Aires)
Commercial Office
Mendoza
Offices / Distribution Center / Warehouses
Monte Hermoso
Real Estate
Neuquén
Olavarria
Paraná
Pehuajo
Offices / Distribution Center / Warehouses
Offices / Distribution Center / Warehouses
Commercial Office
Offices / Distribution Center / Warehouses
Pergamino
Offices / Cross Docking
Puerto Madryn
Commercial Office
6,000
903
73,150
1,400
1,870
880
38
270
1,600
25,798
Leased
Leased
0
0
Own
Encumbrance Free
Leased
Leased
0
0
Own
Encumbrance Free
Leased
Leased
Leased
0
0
0
Own
Encumbrance Free
1,350
Third Parties
Andina
Andina
Andina
Andina
Third Parties
Andina
Not used
Andina
Andina
Andina
Andina
72
7,500
118
1,214
8,808
8,800
2,500
357
1,000
15,525
995
108
36,452
300
10,157
3,065
318
1,060
15,700
0
0
0
0
0
Andina executed by third party
Andina
Andina
Andina
Andina executed by third party
Encumbrance Free
Encumbrance Free
Andina
Andina
0
0
0
0
Andina executed by third party
Andina
Andina
Andina executed by third party
Leased
Leased
Leased
Leased
Own
Own
Leased
Leased
Leased
Leased
Own
Encumbrance Free
Andina
2,800
Third Parties
2,392
Leased
Third Parties
Leased
Own
Own
Own
Leased
Leased
Leased
0
0
0
0
Encumbrance Free
Encumbrance Free
Encumbrance Free
0
0
0
Andina executed by third party
Andina executed by third party
Andina executed by third party
Andina
Andina
Not used
Andina
Andina
Andina
Andina
Andina
Andina
Own
Encumbrance Free
115
Leased
0
8OURCOMPANY1325679410
Operation
Main use
Rio Gallegos
Rio Grande
Río IV
Río IV
Distribution Center / Warehouses
Offices / Distribution Center / Warehouses
Cross Docking
Commercial Office
Rivadavia (Mendoza)
Deposit
Mts2
2,491
2,460
7,482
93
800
Rosario
Offices / Distribution Center / Warehouses / Parking Lot / Real Estate
27,814
Own
/Leased
Leased
Leased
Encumbrances
Operation:
Andina / Third Party
0
0
Andina executed by third party
Andina
Own
Encumbrance Free
Third Parties
Leased
Own
Own
0
Encumbrance Free
Encumbrance Free
San Francisco
Commercial Office
63
Leased
0
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San Juan
San Luis
San Nicolas
San Rafael
Offices / Distribution Center / Warehouses
Commercial Office / 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
88,309
Offices / Production of Soft Drinks / Distribution Center / Warehouses
51,000
Warehouses
Tres Arroyos
Offices / Crossdocking / Warehouses
Ushuaia
Ushuaia
Offices / Distribution Center / Warehouses
Commercial Office
48,036
5,205
50
58
40
238
Own
Own
Leased
Leased
Leased
Leased
1,200
Third Parties
Own
Own
Leased
Leased
Leased
Leased
1,500
1,548
1,360
94
Venado Tuerto
Commercial Office / Distribution Center / Warehouses
2,449
Third Parties
Villa Maria
Commercial Office
Villa Mercedes
Commercial Office
125
70
Leased
Leased
Andina
Not used
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina executed by third party
Andina
Andina
Andina
Andina
Andina
Andina
Andina executed by third party
Andina
Andina
Encumbrance Free
Encumbrance Free
0
0
0
0
0
Encumbrance Free
Encumbrance Free
0
0
0
0
0
0
0
Buenos Aires
Buenos Aires
Production of bottles, PET Preforms, Plastic Caps and Cases
Deposit adjoining the production plant
27,520
1,041
Own
Encumbrance Free
Leased
0
Andina
Andina
ANDINA EMPAQUES ARGENTINA S.A.
8OURCOMPANY1325679410
BRAZIL
RIO DE JANEIRO REFRESCOS LTDA.
Operation
Main use
Mts2
Own
/Leased
Encumbrances
Operation:
Andina / Third Party
Jacarepaguá
Offices / Production of Soft Drinks / Distribution Center / Warehouses
249,470
Own
Duque de Caxias
Offices / Production of Soft Drinks / Distribution Center / Warehouses
2,243,953
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Nova Iguaçu
Distribution Center / Warehouses
Bangu
Distribution Center
Campos dos Goytacazes
Distribution Center
Cabo Frio
Deactivated Distribution Center
São Pedro da Aldeia 1
Distribution Center
Itaperuna
Cross Docking
Caju 1
Caju 2
Caju 3
Distribution Center
Distribution Center
Parking Lot
Vitória (Cariacica)
Distribution Center
Cachoeiro do Itapemirim Cross Docking
Linhares
Cross Docking
Judicial Attachment
Judicial Process
Tax- ICMS/RJ
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Own
Own
Own
Own
Own
82,618
44,389
36,083
1,985
10,139
Concession Encumbrance Free
2,500
4,866
8,058
7,400
93,320
8,000
1,500
Leased
Encumbrance Free
Own
Own
Encumbrance Free
Encumbrance Free
Leased
Encumbrance Free
Own
Encumbrance Free
Leased
Encumbrance Free
Leased
Encumbrance Free
Ribeirão Preto
Offices / Production of Soft Drinks / Distribution Center / Warehouses
238,096
Own
Judicial Attachment
Judicial Process
Tax- IPI/ZFM
Ribeirão Preto
Real Estate
Franca
Mococa
Araraquara
São Paulo
Distribution Center
Distribution Center
Distribution Center
Apartment
São Joao da Boa Vista
Cross Docking
São Pedro da Aldeia 2
Parking Lot
Nova Friburgo
Commercial Office / Cross Docking
Guarapari
Colatina
São Mateus
Commercial Office
Commercial Office / Cross Docking
Commercial Office / Cross Docking
Rio das Ostras
Commercial Office
Passos
Distribution Center
279,557
32,500
33,669
11,658
69
20,773
6,400
350
218
3,840
2,007
527
8,500
Own
Own
Encumbrance Free
Encumbrance Free
Leased
Encumbrance Free
Own
Own
Own
Encumbrance Free
Encumbrance Free
Encumbrance Free
Concession Encumbrance Free
Leased
Encumbrance Free
Leased
Encumbrance Free
Leased
Encumbrance Free
Leased
Encumbrance Free
Leased
Encumbrance Free
Leased
Encumbrance Free
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
Andina
8OURCOMPANY1325679410
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CHILE
EMBOTELLADORA ANDINA S.A.
Operation
Main use
Mts2
Own
/Leased
Encumbrances
Operation:
Andina / Third Party
Offices / Production of Soft Drinks / Distribution Center / Warehouses
380,833
Renca
Renca
Renca
Renca
Warehouses
Warehouses
Warehouses
Carlos Valdovinos
Distribution Center / Warehouses
Puente Alto
Distribution Center / Warehouses
Maipú
Distribution Center / Warehouses
Demetrop (Metropolitan Region)
Warehouses
Trailerlogistic (Metropolitan Region) Warehouses
Monster (Metropolitan Region)
Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Rancagua
San Antonio
Antofagasta
Antofagasta
Calama
Tocopilla
Coquimbo
Copiapó
Ovalle
Vallenar
Illapel
Punta Arenas
Coyhaique
Offices / Production of Soft Drinks / Distribution Center / Warehouses
34,729
Offices / Production of Soft Drinks / Distribution Center / Warehouses
8,028
Distribution Center / Warehouses
Distribution Center / Warehouses
Offices / Distribution Center / Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
10,700
562
31,383
26,800
6,223
5,000
n/a
Offices / Production of Soft Drinks / Distribution Center / Warehouses
109,517
Puerto Natales
Distribution Center / Warehouses
Distribution Center / Warehouses
5,093
850
55,562
11,211
46,965
106,820
68,682
45,833
n/a
n/a
n/a
25,920
19,809
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Own
Own
Own
Own
Own
Own
Own
Leased
Leased
Leased
Own
Own
Own
Own
Own
Own
Own
Own
Own
Own
Leased
Own
Own
Leased
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
8OURCOMPANY1325679410
Operation
Main use
Mts2
Own
Encumbrances
Operation:
/Leased
Andina / Third Party
Renca
Offices / Production of Juices
40,000
Own
Encumbrance Free
Andina
VJ S.A
Rengo
Offices / Production of Waters
346,532
Own
Encumbrance Free
Andina
VITAL AGUAS S.A
Renca
Offices / Production of Soft Drinks
51,907
Own
Encumbrance Free
Andina
ENVASES CENTRAL S.A
1
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PARAGUAY
PARAGUAY REFRESCOS S.A.
Operation
Main use
San Lorenzo
Offices / Production of Soft Drinks / Warehouses
Coronel Oviedo
Offices / Warehouses
Encarnación
Offices / Warehouses
Ciudad del Este
Offices / Warehouses
Mts2
275,292
32,911
12,744
14,620
Own
/Leased
Encumbrances
Operation:
Andina / Third Party
Own
Own
Own
Own
Encumbrance Free
Encumbrance Free
Encumbrance Free
Encumbrance Free
Andina
Andina
Andina
Andina
8OURCOMPANY1325679410
GRI: 102-2
Colas
Coca-Cola
Coca-Cola Zero/Sin azúcar
Coca-Cola Light
Coca-Cola Plus Café
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
2
2
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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
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
Guaraná Power
I9
Leão Ice Tea Light/Zero/sin azúcar
8OURCOMPANY1325679410
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Other non-alcoholic beverages
Matte Leão
Matte Leão Zero
Monster
Monster Zero/Light/Sin azúcar
Powerade
Powerade Zero/Light/Sin azúcar
Reign
Tropical
Beers
Amstel
Báltica
Bavaria
Becker
Becks
Blue Moon
Brahma
Bud light
Budweiser
Busch
Corona
Corona Light
Cusqueña
Eisenbahn
Estrella Galicia
Goose Island
Grolsch
Heineken
Hoegaarden
Iguana
Imperial
Isenbeck
Kaiser
Kilómetro 24.7
Kunstmann
Leffe
Malta del Sur
Michelob Ultra
Miller
Palermo
Pilsen del Sur
Quilmes
Salta Cautiva
Santa Fe
Schneider
Sol
Stella Artois
Stella Artois Gluten Free
Therezópolis
Tiger
Warsteiner
Spirits and Wine
120 3 Medallas
120 Gran Edición
120 Heroes
120 Reserva Especial
Alto del carmen Ice
Amaranta
Amaranta Spritz
Artesanos del Cochiguaz Sour
Baileys
Bodega Uno
Bourbon Bulleit
Cabernario
Capel Ice
Capel Mix
Capel Pisco Sour
Capel Pisco Sour Light
Carmen
Carmen Delanz
Carmen DO
Carmen Gran Reserva
Carmen Insigne
8OURCOMPANY1325679410
Spirits and Wine
Carmen Late Harvest
Carmen Premier 1850
Carmen Tradicional
Carmen Waves Series
Casa Real
Cavanza
Coctail Inca de Oro mango
Cremisse
Doña Paula 1100
Doña Paula Estate
Espumante Francisco de Aguirre
Espumante Myla
Espumante Nola Zero
Espumante Sensus
Floresta
Gin Tanqueray
Gran 120
Hermanos Carrera
Heroes
Invictas
Los Cardos
Maddero Ice
Medalla Real
Medalla Real Gold
Pisco Alto del Carmen
Pisco Artesanos del Cochiguaz
Pisco Brujas de Salamanca
Pisco Capel
Pisco Hacienda La Torre
Pisco Monte Fraile
Rita
Ron Cacique
Ron Maddero
Ron Maddero Piña Colada
Ron Pampero
Ron Zacapa
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Sangria Guay
Santa Rita
Schweppes
Sheridan's
Sidra 1888
Sidra Pehuenia
Sidra Real
Sour Inca de Oro
Stellar-Ice
Tequila Don Julio
Terra Andina
Terra Andina Free
Terra Andina Reserva
Topo Chico
Vino Carbonatado Pkador
Vino Colón
Vino Eugenio Bustos
Vino Graffigna
Vino Grosso
Vino La Celia
Vino Prologo 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
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BRAZIL
CHILE
PARAGUAY
This Agreement includes, as license territory,
a large part of the state of Rio de Janeiro, the
entire state of Espírito Santo and part of the
states of São Paulo and Minas Gerais.
The license for the territories in Brazil
expires in October 2022.
This Agreement includes, as license
territory, all of Paraguay.
The license for the territory of Paraguay is
currently in the process of being renewed.
The Agreement includes, as license territory,
the Metropolitan Region; the province of San
Antonio, in the Valparaíso Region; the province
of Cachapoal, including the commune of San
Vicente de Tagua-Tagua, in the Libertador
Bernardo O'Higgins Region; the Antofagasta
Region; the Atacama Region; the Coquimbo
Region; the Aysén del General Carlos Ibáñez del
Campo Region; and the Magallanes and Chilean
Antarctica Region.
The license for the territories in Chile expires in
January 2023.
In 2005, VJ S.A. and The Coca-Cola Company
entered into a Juice Bottling Agreement whereby
The Coca-Cola Company authorizes VJ S.A.
to produce, process and bottle, in containers
previously approved by The Coca-Cola Company,
products under certain brands.
Andina and Embonor hold the rights to acquire
the products from VJ S.A. This agreement was
renewed on January 1, 2019 and is currently
in the process of being renewed. Additionally,
Andina, VJ S.A. and Embonor have agreed with
The Coca-Cola Company to produce, package
and commercialize these products in their
respective plants.
In 2005, a Water Production and Bottling
Agreement was entered into between The
Coca-Cola Company and Vital Aguas to prepare
and bottle beverages in connection with the
Vital, Chanqueahue, Vital de Chanqueahue and
Dasani brands, incorporating in early 2008 the
Benedictino brand to the portfolio of products
produced by Vital Aguas under this agreement.
This agreement was renewed in 2019 and is
currently in the process of being renewed.
Our status as a franchisee of
The Coca-Cola Company is based on the
Bottling Agreements that we have entered
into with The Coca-Cola Company, whereby
we have acquired the license to produce
and distribute The Coca-Cola Company's
branded products within its license
territories in Argentina, Brazil, Chile and
Paraguay. The Company's operations depend
significantly on the continuance and renewal
of these Bottling Agreements.
The Bottler Agreements are standard
international 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 that they will be renewed on the same or
better terms.
ARGENTINA
This Agreement includes, as license 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.
The license for the territories in Argentina expires
in September 2022.
8OURCOMPANY1325679410
BRAZIL
In Brazil, the distribution agreements are as
follows:
• Energy drinks distribution agreement with
Monster Energy Company, entered into on
August 2, 2016. This agreement has a term
of 10 years, automatically renewable for
successive periods of five years and upon
fulfillment of certain conditions.
• Distribution agreement of alcoholic
beverages (mainly beers) with Cervejarias
Kaiser Brazil S.A., entered into on February
24, 2021. This agreement has a term of five
years, renewable upon fulfillment of certain
conditions.
• Distribution agreement of alcoholic
beverages (mainly beers) with Estrella de
Galicia Importação e Comercialização de
Bebidas e Alimentos Ltda., entered into
on September 3, 2021. This agreement has
a term of one year, renewable for 10 years,
subject to certain conditions.
GRI: 204-1
The distribution agreements we have in the
different operations in Argentina, Brazil,
Chile and Paraguay, allow us to distribute
the products stipulated in such agreements
within the license territories of each country.
ARGENTINA
In Argentina, the distribution agreements
are as follows:
• Alcoholic beverages Commercialization
Agreement (mainly beers, ciders and wines)
with Compañía Industrial Cervecera S.A.,
entered into on October 2, 2017. This
agreement is currently in the process of
renewal.
• Energy drinks Distribution Agreement
with Monster Energy Company,
entered into on December 13, 2017.
This agreement has a term of 10 years,
automatically renewable for successive
periods of five years and upon fulfillment
of certain conditions.
CHILE
PARAGUAY
In Chile, the distribution agreements are as
follows:
In Paraguay, the distribution agreements are
as follows:
• Energy drinks distribution agreement with
Monster Energy Company, entered into on
August 1, 2016. This agreement has a term
of 10 years, automatically renewable for
successive periods of five years and upon
fulfillment of certain conditions.
• Energy drinks distribution agreement with
Monster Energy Company, entered into on
May 11, 2018. This agreement has a term
of 10 years, automatically renewable for
successive periods of five years and upon
fulfillment of certain conditions.
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• Distribution Agreement of alcoholic
beverages (mainly spirits) with Diageo
Chile Limitada, entered into on April 26,
2018. Said contract has a term of three
years and is currently in the process of
renewal.
• Distribution agreement for alcoholic
beverages (mainly distilled spirits) with
Cooperativa Agrícola y Pisquera Elqui
Limitada and Viña Francisco de Aguirre
S.A., entered into on August 21, 2019.
This agreement has a term of five years,
renewable upon fulfillment of certain
conditions.
• Distribution agreement of alcoholic
beverages (mainly beer) with Cervecería
Chile S.A., entered into on August 17,
2020. This agreement has a term of
five years, starting November 1, 2020,
renewable subject to certain conditions.
• Distribution agreement of alcoholic
beverages (mainly wines) with Sociedad
Anónima Santa Rita, entered into on
August 19, 2021. This agreement has a
term of five years, starting on November
2, 2021, renewable subject to certain
conditions.
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YEAR ENDED DECEMBER 31
2020
2021
Total Installed
Annual Capacity
(MUC)
Average
Utilization
Capacity (%)
Utilization
Capacity During
Peak Month (%)
Total Installed
Annual Capacity
(MUC)
Average
Utilization
Capacity (%)
Utilization
Capacity During
Peak Month (%)
GRI 102-7; 203-1
Here we present information regarding installed
capacity and approximate average utilization of
production facilities by business line.
During the period, we continued to modernize
and renovate our production plants in order to
maximize efficiency and productivity. We also
made significant improvements in auxiliary
services and in our complementary processes,
such as water treatment plants and effluent
treatment stations. We believe we have sufficient
capacity in each of our license 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, it is necessary for bottlers to maintain
significant excess capacity in order to meet the
substantially higher seasonal demand. The
quality of our products is assured through world-
class practices and procedures; we maintain
quality control laboratories at each production
plant, where raw materials are tested and soft
drink samples are analyzed.
AS OF DECEMBER 31, 2021,
WE HAD A TOTAL INSTALLED
PRODUCTION CAPACITY,
INCLUDING SOFT DRINKS, FRUIT
JUICES AND WATERS, OF 1,602
MILLION UNIT CASES.
SSD (MUC)
Andina Chile
Brasil Refrescos
Andina Argentina
Paraguay Refrescos
Other Beverages (MUC)
Andina Chile
Brasil Refrescos
Andina Argentina
Paraguay Refrescos
Envases Central,
Vital Aguas,
Vital Jugos (Chile)
Others:
PET
(million bottles)
Preforms
(million preforms)
Plastic caps
(million caps)
Cases
317
421
378
128
22
56
117
33
122
46
860
1,000
1
Total Capacity bev.
1,594
50
53
39
39
54
43
15
29
53
38
64
41
59
64
63
58
57
61
54
24
36
59
66
85
97
100
328
404
368
128
20
58
127
34
136
46
900
1,000
1
1,602
53
58
43
45
66
49
18
33
51
38
77
48
75
67
66
59
52
73
60
12
44
81
48
98
74
100
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TWELVE PRINCIPAL CLIENTS BY COUNTRY
Argentina:
Brazil:
Chile:
Paraguay:
S.A. Imp.y Exp.de la
Patagonia, Cencosud S.A.,
Inc Sociedad Anónima,
Dorinka S.R.L., Mistura
S.A., G & A Distribuciones
S.A.S, Switch Company
S.A., Sita S.A., Dia
Argentina S.A., Lopez Hnos
S R L, Dinosaurio S.A. y J
and H Distribuciones S R L.
No single customer by itself
accounts for more than 10%
of sales carried out.
Sendas Distribuidora
SA, Atacadao SA,
Supermercados Mundial
Ltda, Super Mercado
Zona Sul SA, Savegnago
Supermercados Ltda, Casas
Guanabara Comestiveis
Ltda, Costazul Alimentos
Eireli, Cencosud Brasil
Comercial SA, Wmb
Supermercados Brasil Ltda,
Realmar Distribuidora Ltda,
Carrefour Com E Industria
Ltda and Companhia
Brasileira Distribuicao.
No single customer by itself
accounts for more than 10%
of sales carried out.
Walmart CHILE S.A.,
Cencosud Retail S.A.,
Rendic Hermanos S A,
Hipermercados Tottus
S.A., Alimentos Fruna
LTDA, Alvi supermercados
mayoristas, Super 10
S.A, Dis y Com Johany
Alexis Marin Leiva,
Comerzializadora Golden
Vendin, Comercial
Liquidos Off SPA, Sodexo
Chile SPA y Distrib. and
Com. Tilicura S.A..
Cadena de Tiendas de
Cercanía Biggie, Cadena
de Supermercados Stock,
Cadena de Supermercados
Super 6, Mayorista
Lekaja S.R.L, Cadena de
Supermercados Luisito,
Mayorista Fortis, Cadena
de Supermercados Real, Mc
Donald's, Mayorista Bodega
Don Juan Srl, Mayorista
Autoservice Sonia,
Mayorista Grefran y Cia
S.A. and Box Mayorista.
No single customer by itself
accounts for more than 10%
of sales carried out.
No single customer by itself
accounts for more than 10%
of sales carried out.
GRI: 102-6, 102-9
ARGENTINA
The distribution of products is carried out
through 102 third party transportation
companies, with a fleet of 624 trucks.
BRAZIL
The distribution of products is carried
out through 5 third party transportation
companies, with a fleet of 42 trucks, and 919
own trucks.
CHILE
The distribution of products is carried out
through 125 third party transportation
companies, with a fleet of 567 trucks, and
299 own trucks.
PARAGUAY
The distribution of products is carried
out through 45 third party transportation
companies, with a fleet of 338 trucks.
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TWELVE MAIN SUPPLIERS BY COUNTRY
GRI: 102-9; 204-1
ARGENTINA:
BRAZIL:
CHILE:
PARAGUAY:
Concentrate
Serv. y Prod. para Bebidas Ref
Resin Containers
Dak Americas Argentina S.A.
Cans
Ball Beverage Can South Americ
Sweetener
Complejo Aliment. San Salvador
Complejo Azucarero Concepción
Containers (plastic bottles) -
Cases - Plastic caps (short finish
screw) - Preforms
Andina Empaques Argentina S.A.
Shrink Wrap
Rio Chico S.A.
Tetra MP - Aseptic cardboard
packaging (including
straws and caps)
Tetra Pak S.R.L.
Preforms
Vinisa Fueguina S.R.L.
Chapadur hardboard
Fiplasto S.A.
Pallet
Repallets S.A.
Carbonic Gas - CO2 - Nitrogen
Praxair Argentina S.R.L.
Suppliers that concentrate more
than 10% of supplier spending:
Serv. y Prod. para Bebidas Ref
Concentrate
Recofarma Industria Do Amazonas Ltda
Concentrate
Coca-Cola de Chile S.A.
Sweetener (Sugar / Fructose)
Comercializadora de Productos Panor Ltda.
Iansa Ingredientes S.A.
Sucden Chile S.A.
Plastic Containers Preforms
Envases CMF S.A.
Glass Containers
Cristalerías de Chile S.A.
Cristalerías Toro S.P.A.
Caps
Sinea S.A.
Cardboard
Corrupac S.A.
Envases Impresos S.A.
Carbonic Gas
Linde Gas Chile S.A.
Shrink Wrap
Plásticos Arpoli S.P.A.
Suppliers that concentrate more
than 10% of supplier spending:
Coca-Cola de Chile S.A.
Sweetener (Sugar / Fructose)
Usina Alta Mogiana S/A – Açúcar E Álcool
Plastic Containers Preforms
Lorenpet Industria e Comercio
de Plasticos Ltda
Returnable Plastic Containers
Riopet Embalagens S.A.
Caps
Bericap Do Brasil Ltda
Cardboard
Tetra Pak Ltda
Electric Power / Gas
Ecogen Rio Solucoes Energeticas S.A.
Glass Containers
Owens-Illinois Do Brasil Industria E
Comercio Ltda
Labels
Pp Print Embalagens S.A.
Cans
Ball Embalagens Ltda
Plastic Stretch Film
Valfilm Nordeste Industria E Comercio De
Plasticos Ltda.
Juices
Tecnovin Do Brasil S.A.
Suppliers that concentrate more
than 10% of supplier spending:
Recofarma Industria Do Amazonas Ltda
Concentrate
Servicios y Productos Para Bebidas
Recofarma Ind Amazonas Ltda
Caps
Sinea S.A.
Carbonic Gas
Liquid Carbonic Del Paraguay S.A.
Preforms
Industrias Pet S.A.E.C.A.
Sweetener
Azucarera Paraguaya S.A.
Inpasa Del Paraguay S.A.
Alcotec Sociedad Anónima
Caps / Preforms
Andina Empaques Argentina S.A.
Reels
Tetra Pak Global Distribution S.A.
Labels / Film
Bolsi Plast S.A.
Caustic Soda
Grupo Bio S.A.C.I.
Suppliers that concentrate more
than 10% of supplier spending:
Recofarma Ind Amazonas Ltda
and Servicios y Productos Para Bebidas
8OURCOMPANY1325679410
PRINCIPAL SUPPLIERS
• Resin: DAK Americas Argentina S.A., PBB
Polisur S.A., Dow Chamical, GC Marketing
Solution CL-Borealis.
• Dye: Arcolor, Clariant, Concentrados y
Compuestos S.A.
• Labels: Multi-Color Corp.
• Packaging: Argencraf S.A., Nem S.A., Afema
S.A., Fadecco-Cartocor.
• Electric power: Edenor S.A., Cammesa,
Termoandes S.A.
PRINCIPAL CLIENTS
Embotelladora del Atlántico S.A. 1,
Coca-Cola Femsa S.A., Paraguay Refrescos
S.A.1, Reginald Lee S.A., Grupo Arca, Andina
Chile, Montevideo Refrescos S.A., Envases
CMF S.A., Embol S.A.
Embotelladora del Atlántico S.A.1, Paraguay
Refrescos S.A.1, Reginald Lee S.A., Envases
CMF S.A. and Grupo Arca each individually
account for at least 10% of total sales carried
out.
1 Subsidiary
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PRINCIPAL SUPPLIERS
• Concentrate: Coca-Cola de Chile S.A.1
• Sweetener: Embotelladora Andina S.A. 3
• Fruit pulp: Comercializadora Tradecos
Chile Ltda., Nufri, SAT N°1596, Sucocitrico
Cutrale Ltda – Brasil.
• Containers and bottles: Tetra Pak de Chile
Ltda., Envases CMF S.A.2, Cristalerías de
Chile S.A.
• Caps: Sinea S.A., Alucaps Mexica de
Occidente S.A de C.V
• Packaging materials: International Paper
Cartones Ltda., Plásticos Arpoli Ltda.,
Plastyberg Industrial Ltda.
• Labels: Xu Yuan Packaging Technology Co.,
Morgan Impresores S.A., Codepack S.A.
Coca-Cola de Chile S.A. 1, Envases CMF
S.A.2 and Tetra Pak de Chile Ltda. each
individually account for at least 10% of total
purchases of raw materials.
PRINCIPAL CLIENTS
Embotelladora Andina S.A.3 , Novaverde
S.A. and Coca-Cola Embonor S.A.1 are the
principal clients and each individually account
for at least 10% of total sales carried out.
1 Shareholder
2 Associate
3 Parent Company
VJ S.A.
Through an agreement with The Minute
Maid Co. and Coca-Cola de Chile S.A., VJ
S.A. mainly produces nectars, fruit juices,
fantasy drinks and isotonic drinks under the
brands Andina del Valle (fruit juices and
nectars), Kapo (fantasy drink), Powerade
(isotonic drink) and Glaceau Vitamin Water
(flavored water with added vitamins and
minerals), as well as Guallarauco products
(juices and nectars). Andina del Valle juice
brands are commercialized in Tetra Pak
containers and returnable and nonreturnable
glass bottles. Kapo is sold in sachets, Glaceau
Vitamin Water in non-returnable PET
bottles, Powerade in non-returnable PET
bottles and Guallarauco in Tetra Pak and
non-returnable PET bottles.
In January 2011, the juice production
business was 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 materialized
on October 1, 2012 by Embotelladoras
Coca-Cola Polar S.A. and Embotelladora
Andina S.A., the ownership structure of VJ
S.A. was modified as of November 2012, as
follows: Andina Inversiones Societarias S.A.
50%, Embonor S.A. 35% and Embotelladora
Andina S.A. 15%.
PRODUCTION AND DISTRIBUTION
VJ S.A. operates a production plant located
in Renca (Santiago), where it has 12 lines for
the production of Andina del Valle, Powerade,
Glaceau Vitamin Water, Kapo, Aquarius and
Guallarauco. The average capacity utilization
during 2021 was 50.8%.
In Chile, VJ products are distributed exclusively
by Coca-Cola bottlers in the country, in each of
their respective franchises.
GRI 102-9
ANDINA EMPAQUES
ARGENTINA S.A.
Andina Empaques Argentina S.A. (hereinafter
"AEA") is a company created in 2011, from the
division of Embotelladora del Atlántico S.A.,
whose purpose is the design, manufacture and
commercialization of plastic products, mainly
packaging.
In the development of its activity in the
packaging division, and aligned with the
strategy of being the packaging supplier of
the Coca-Cola Andina group of companies,
in the course of the year 2021 AEA supplied
the need of non-returnable preforms, plastic
caps and returnable PET bottles of Coca-Cola
Andina Argentina.
PRODUCTION AND SALES BY
FORMAT
Andina Empaques Argentina S.A. operates a
plant for the production of preforms, returnable
PET bottles, crates and plastic caps located in
Tigre, Province of Buenos Aires, Argentina. The
plant has thirteen preform injection lines, two
blow molding lines, one crate line, and two cap
injection lines.
The production lines operated at 76.5% of
installed capacity in injection, 37.9% in blow
molding, 74.6% in crates and 48% in plastic caps.
Sales by format (units sold) during 2021 were
24.3 million Ref PET bottles and 688.2 million
preforms for non-returnable bottles, 0.5 million
crates and 636.0 million plastic caps.
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VITAL AGUAS S.A.
ENVASES CENTRAL S.A.
Through an agreement with
The Coca-Cola Company, Vital Aguas S.A.
prepares and packages the Vital (mineral water)
and Glaceau SmartWater (purified water)
brands in sparkling and still versions. The
Vital mineral water brand is commercialized in
non-returnable glass and non-returnable PET
bottles and the Glaceau SmartWater brand in
non-returnable PET bottles. As a result of the
merger between Embotelladoras Coca-Cola
Polar S.A. and Embotelladora Andina S.A.
on October 1, 2012, the ownership structure
of Vital Aguas was modified as of November
2012, as follows: Embotelladora Andina S.A.
66.5%, 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
municipality of Rengo in Chile. In Chile, Vital
Aguas' products are distributed exclusively by
Coca-Cola bottlers in each of their respective
franchises.
PRINCIPAL SUPPLIERS
• Concentrate: Coca-Cola de Chile S.A.1
• Carbonic gas: Linde Gas Chile S.A.
• Labels: Resinplast S.A., Adhesol
Ltda.,Empack Flexible S.A.
It is engaged mainly in the production of soft
drinks (Coca-Cola, Fanta and Sprite, among
others), Aquarius flavored water, Andina del
Valle nectars and Monster energy drink. These
products are packaged in 350ml and 220ml
cans for soft drinks and 473ml for energy
drinks, in 250ml, 500ml and 1.5lt PET plastic
bottles for soft drinks and flavored waters, and
in 300ml, 1.5lt, 1.75lt and 2lt PET plastic bottles
for Andina del Valle nectars. Envases Central
S.A. is owned by the bottlers of Coca-Cola
products in Chile together with Coca-Cola de
Chile. Andina owns 59.27%, Embonor 34.31%
and Coca-Cola de Chile 6.42%.
PRODUCTION AND DISTRIBUTION
Envases Central operates a production plant
in Santiago. In Chile, Envases Central's
products are distributed exclusively by
Coca-Cola bottlers in the country in each of
their respective franchises.
PRINCIPAL SUPPLIERS
• Concentrate: Coca-Cola de Chile S.A.1
• Cans and aluminum caps: Ball Chile S.A.,
Canpack Colombia S.A.S.
• Fruit pulps VJ S.A.2
• Sweetener: Embotelladora Andina S.A.3
• Plastic bottles and caps: Envases CMF S.A.2,
Bericap S.A.
• Packaging materials: Calalsa Industrial S.A.,
Plastyverg Industrial Ltda., Winpack S.A.
• Caps: Envases CMF S.A.2, Aptar Do Brasil
• Labels: Adhesol Ltda., Multi-Color Chile S.A.
• Packaging materials: Plásticos Arpoli Ltda.,
Corrupac S.A., International Paper
Embalagens Ltda.
• Containers (preforms): Envases CMF S.A.2,
Cristalerías de Chile S.A.
Envases CMF S.A.2 and Coca-Cola de Chile
S.A.1 each individually concentrate at least
10% of total purchases of raw materials
carried out.
PRINCIPAL CLIENTS
Embotelladora Andina S.A.3 and
Coca-Cola Embonor S.A.1 each individually
concentrate at least 10% of total sales
carried out.
Cartones Ltda.
Coca-Cola de Chile S.A.1, Ball Chile S.A.
and VJ S.A.2 each individually account for at
least 10% of total purchases of raw materials
carried out.
PRINCIPAL CLIENTS
Embotelladora Andina S.A.3 and
Coca-Cola Embonor S.A.1 each 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 CMF S.A.
It is mainly engaged in the production
of returnable and non-returnable bottles,
preforms in returnable and non-returnable
formats and caps. Since 2012, Envases CMF
has been owned by Andina Inversiones
Societarias S.A. (50%) and Embonor
Empaques S.A. (50%).
PRINCIPAL SUPPLIERS
• Resin: Sanfame Group, China Resources
Chemical, Far Eastern New Century,
Dak Americas.
• Packaging: Cartocor, Impresos y Cartonajes
S.A., Pallets Patagonia, Winpack.
• Dye and Masterbatch: Colormatrix,
Top Color.
PRODUCTION AND SALES
BY FORMAT
Envases CMF operates a plant in Santiago
for the production of bottles, preforms,
caps, cases and other plastic containers. The
plant has 13 preform injection lines, 9 blow
molding lines, 11 conventional injection
lines, 9 injection blow molding lines, 5
extrusion blow molding lines, 3 crate lines
and 2 cap lines.
Sales by format during 2021 were 113.5
million non-returnable PET bottles, 26.3
million returnable PET bottles, 868.3 million
preforms for non-returnable bottles and
1,159.1 million products in conventional
injection.
Sanfame Group, China Resources Chemical
and Far Eastern New Century each
individually account for at least 10% of total
purchases of raw materials carried out.
PRINCIPAL CLIENTS
Embotelladora Andina S.A.1,
Coca-Cola Embonor S.A.1, VJ S.A.2,
Vital Aguas S.A.2, Envases Central S.A.2,
Nestlé Chile S.A., Unilever Chile S.A.,
Demaria S.A.
Embotelladora Andina S.A. 1 and
Coca-Cola Embonor S.A. 1 each individually
concentrate at least 10% of total sales carried out.
1 Shareholder
2 Associate
8OURCOMPANY1325679410
WITHIN THE POWERS GRANTED
BY THE SHAREHOLDERS'
MEETING, THE BOARD OF
DIRECTORS DEFINES THE
FINANCING AND INVESTMENT
POLICIES.
Our bylaws do not define a specific financing
structure or the investments that the Company
may make. On the other hand, in accordance
with the provisions of the Company's current
power structure, the making of certain types
of investments and the contracting of certain
financing requires the prior approval of the
Company's Board of Directors.
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Coca-Cola Andina and its subsidiaries
maintain insurance policies with leading
global companies. At the corporate level,
the main risks are managed by taking out
insurance against all operational risks
and terrorism (whose policy covers fire,
earthquakes and damages due to stoppage,
including profits not received as a result of
losses); civil liability and product liability.
At the operations level, policies are taken
out to cover more specific risks, such as
transportation, motor vehicles, credit risk,
construction, and others.
Coca-Cola Andina's 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 normal operations.
INVESTMENTS
GRI: 203-1
Consolidated (million Chilean pesos)
Argentina
Embotelladora del Atlántico S.A (*)
Andina Empaques Argentina S.A (*)
Brazil
Rio de Janeiro Refrescos Ltda.
Chile
Embotelladora Andina S.A.
VJ S.A.
Vital Aguas S.A.
Envases Central S.A.
Re-ciclar S.A.
Paraguay
Paraguay Refrescos S.A
2020
82,653
16,508
15,603
905
19,138
19,138
26,488
24,150
414
276
1,648
-
20,519
20,519
2021
141,952
31,723
30,018
1,705
30,882
30,882
57,245
43,152
4,238
110
6,185
3,560
22,102
22,102
* Considers IFRS 16 beginning January 1, 2019, which has meant recognizing certain right-of-use as fixed assets.
WE HAVE BUDGETED
US$190-US$200
million for our capital expenditures
in 2022, which are expected to be
allocated mainly to:
• Expanding our production capacity, mainly
by making improvements to expand
production capacity for cans, flavored
alcohols and sensitive products in Brazil,
machinery and infrastructure to be able to
produce a larger portfolio in our plants in
Argentina, and new production lines for
soft drinks in Chile and cans in Envases
Central.
• Improve infrastructure for greater
flexibility and efficiency (mainly in
Argentina and Chile).
• Returnable bottles and containers
(optimizing the use of multipurpose bottles).
• Cold equipment (with energy efficiency
savings and improved customer service).
• Truck fleet renewal (Chile).
• Improve water use efficiency (Argentina
and Chile).
• Promote the use of recycled PET resin (new
PET flakes line in Brazil).
• Compliance with industrial water
treatment regulations (effluent treatment
plant in Chile).
• Improve our information technologies in
our relationship with clients, consumers
and internal processes, accelerating
digitization with the incorporation of
more technological solutions, artificial
intelligence and machine learning.
8OURCOMPANY1325679410
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9
Principal metrics
9PRINCIPAL METRICS1325678410
Business pillar
CERTIFICATIONS BY COUNTRY
GRI:416-1; 417-1, 103-1; 303-2; 103-3
Quality
ISO 9001
Environment
ISO 14001
Health and Safety
OSHAS 18001
o ISO 45001
Food Safety
FSSC22
KORE,
The Coca-Cola Company
Operating Requirements
Behavior-based
safety
BROAD
PORTFOLIO,
CHANNELS AND
GEOGRAPHIES
MARKET
LEADERSHIP
Argentina
Brazil
Chile
Paraguay
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Material issues
SENSORY ANALYSIS: NUMBER OF PANELISTS TRAINED [#/year]
GRI:416-1; 417-1, 103-1; 303-2; 103-3
CONSUMER
WELL-BEING
CUSTOMER
SATISFACTION
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2018
140
179
138
74
531
2019
167
83
80
60
390
171
105
133
70
479
2020
2021
108
108
136
70
422
2021
100%
100%
100%
100%
100%
SENSORY ANALYSIS: PERCENTAGE PRODUCTS TESTED [%/year]
GRI:416-1; 417-1, 103-1; 303-2; 103-3
Argentina
Brazil
Chile
Paraguay
2018
85%
95%
88%
100%
Total Coca-Cola Andina
91%
2019
100%
100%
100%
100%
100%
2020
100%
100%
100%
100%
100%
9PRINCIPAL METRICS1325678410
NUMBER OF CLIENTS [THOUSAND CLIENTS/YEAR]
Argentina
Brazil
Chile
Paraguay
2017
2018
2019
2020
2021
66
89
65
57
60
86
67
55
59
85
64
58
65
87
64
58
66
87
67
62
Total Coca-Cola Andina
277
268
267
274
282
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KILOCALORIES PER LITER SOLD
GRI: 103-1; 103-2; 103-3; 417-1
CONSUMER CLAIMS RATE [#claims x 1,000,000/bottles sold]
GRI: 417-2; 417-3
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Argentina
354.7
345.1
327.4
315.4
295.6
Argentina
Brazil
Chile
370.3
344.8
334.3
320.5
309.4
Brazil
253.9
219.6
216.7
218.3
199.3
322.6
Chile
Paraguay
Paraguay
355.4
336.8
329.0
333.3
1.7
4.9
9.7
0.5
2.5
4.7
7.5
0.3
2.9
4.6
6.8
0.4
3.9
4.6
8.5
0.5
3.2
3.4
5.6
0.4
Total Coca-Cola Andina
329.7
305.4
296.3
287.6
271.8
Note: Claims rate=No. operating claims*1,000,000 / Bottles Sold
2021 REFORMULATED PRODUCTS
GRI: 103-1; 103-2; 103-3; 417-1
PERCENTAGE OF CUSTOMER SERVICE VIA CALL-CENTER
GRI: 417-2; 417-3
% Sales volume reformulated
products involving
sugar reduction
% Sales volume of products
reformulated for other reasons
(excluding sugar reduction)
Argentina
Brazil
Chile
Paraguay
2017
2018
2019
2020
2021
1.7%
6.3%
8.7%
4.8%
Claims
9.9%
9.7%
9.1%
4.3%
0.0%
0.0%
12.5%
0.0%
Orders (sales)
32.7%
35.9%
35.4%
52.1%
Requests
(service, visits, etc.)
25.9%
20.8%
21.0%
17.4%
6.2%
37.3%
15.9%
Note: Other reasons, refers to nutritional additives, fruit juices, among others.
Inquiries
31.5%
33.6%
34.5%
26.2%
40.5%
Total calls [#/year]
987,149
993,561
1,061,212
1,152,034
1,057,438
9PRINCIPAL METRICS1325678410
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TOTAL SALES VOLUME [MUC/YEAR]
2019
2020
2021
Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay
Total
Soft drinks
Waters
Juices & other
non-alcoholic beverages
Beers & other alcoholic
beverages
178.2
259.3
239.6
69.3
166.7
265.1
236.3
66.4
184.7
266.4
307.0
149.5
206.8
158.2
56.2
145.2
205.5
153.8
55.1
157.4
204.3
168.6
18.9
11.5
44.6
9.9
0.0
22.3
18.7
36.1
0.6
7.9
5.2
-
12.0
17.9
9.5
0.0
18.8
23.0
41.1
33.9
7.5
6.5
4.8
-
14.1
13.1
0.0
18.6
22.0
21.5
51.0
47.9
39.5
70.3
57.6
7.8
4.9
-
Notes: MUC = Million Unit Cases (unit of product used to measure volumes, equivalent to approximately 5.678 liters). For Argentina, beers are not considered.
Volumes by category for Argentina were redistributed in previous years to show comparable values for 2020. Total volumes did not change.
PER CAPITA ANNUAL CONSUMPTION
2019
2020
2021
Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay
Soft drinks
Waters
Juices & other
non-alcoholic beverages
Beers & other alcoholic
beverages
257.0
214.7
371.8
188.1
250.0
209.7
360.6
181.9
271.0
204.1
388.1
187.6
29.0
11.7
95.3
26.1
19.0
17.0
19.0
53.0
18.0
16.0
18.1
16.7
88.0
48.7
21.3
16.2
70.0
19.4
1.6
-
71.0
23.4
18.1
-
24.0
23.0
73.0
18.0
18.1
21.5
107.5
65.0
94.1
25.3
16.1
-
Note: Measured in number of 237cc or 8oz bottles/year.
9PRINCIPAL METRICS1325678410
SOFT DRINKS SALES BY FORMAT [UC SSD/TOTAL SSD]
2019
2020
2021
Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay
Multi-serving non-returnable
40.4%
57.8%
37.6%
41.2%
37.7%
58.2%
40.7%
42.8%
39.6%
60.4%
44.2%
41.4%
Multi-serving returnable
46.8%
23.0%
40.9%
43.0%
54.1%
26.8%
44.5%
46.4%
50.1%
23.9%
37.7%
44.7%
Single-serving non-returnable
10.2%
14.5%
13.6%
11.3%
Single-serving returnable
SSD Post Mix
1.3%
1.3%
2.2%
2.6%
3.7%
4.2%
3.3%
1.2%
7.1%
0.6%
0.5%
12.0%
10.6%
1.5%
1.5%
2.4%
1.8%
8.3%
1.9%
0.7%
8.9%
0.7%
0.8%
12.3%
13.7%
11.0%
1.6%
1.7%
2.7%
1.8%
2.0%
1.0%
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SALES BY CHANNEL [UC/TOTAL UC]
2019
2020
2021
Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay
Traditional (Mom & Pops)
37.2%
33.1%
46.5%
38.7%
36.5%
33.8%
54.0%
42.4%
34.3%
32.6%
49.8%
40.5%
Wholesales
32.0%
19.5%
12.9%
35.1%
36.3%
21.9%
11.5%
36.0%
33.4%
21.7%
13.5%
36.9%
Supermarkets
23.2%
31.8%
27.2%
13.1%
23.1%
32.7%
24.5%
12.3%
26.7%
33.1%
26.3%
11.9%
On-premise
7.6%
15.7%
13.4%
13.1%
4.2%
11.7%
10.0%
9.3%
5.6%
12.6%
10.4%
10.7%
Note: Modification of Chile 2020 figures due to the volume incorporation of alcoholic beverages.
SOFT DRINK SALES BY FLAVOR (UC SSD / TOTAL SSD)
2019
2020
2021
Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay Argentina
Brazil
Chile
Paraguay
Coca-Cola
61.4%
70.5%
51.0%
54.5%
65.3%
72.7%
55.4%
55.4%
65.5%
72.5%
55.7%
55.7%
Other sugary
21.4%
15.7%
17.9%
27.4%
18.0%
14.2%
16.2%
26.7%
17.7%
13.9%
15.6%
26.3%
Coca-Cola Sin Azúcar/Light
11.3%
Others Light
5.9%
7.2%
6.6%
24.8%
3.3%
11.4%
6.3%
14.8%
5.3%
6.9%
6.3%
23.6%
2.9%
11.7%
4.8%
15.0%
5.2%
7.4%
6.3%
24.0%
3.2%
4.7%
14.7%
9PRINCIPAL METRICS1325678410
Business pillar
TOTAL WATER CONSUMPTION [m3/year]
GRI:103-1, 103-2; 103-3; 303-1, 303-5
VALUE CHAIN
EFFICIENCY AND
PRODUCTIVITY
Material issues
WATER MANAGEMENT
2017
2018
2019
2020
2021
Argentina
2,831,418
2,661,129
2,327,439
2,168,179
2,154,593
Brazil
Chile
2,028,498
1,934,800
2,058,065
1,867,946
1,893,388
2,162,181
2,075,851
2,106,349
1,993,497
2,013,054
Paraguay
707,882
707,098
722,056
668,740
698,928
Total Coca-Cola Andina
7,729,979
7,378,878
7,213,909
6,698,362
6,759,963
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LITERS OF BEVERAGES PRODUCED [m3/year]
GRI:103-1, 103-2; 103-3; 303-1
2017
2018
2019
2020
2021
Argentina
1,189,129
1,141,747
1,003,119
931,243
1,031,567
Brazil
Chile
1,235,574
1,261,005
1,354,318
1,347,586
1,366,493
877,766
890,193
931,476
944,490
1,032,501
Paraguay
362,496
377,328
389,699
370,194
392,308
Total Coca-Cola Andina
3,664,965
3,670,273
3,678,612
3,593,513
3,822,870
WATER RATIO (WUR) [liter water/liter beverage produced]
GRI:103-1, 103-2; 103-3; 303-1
2017
2018
2019
2020
2021
Argentina
Brazil
Chile
Paraguay
2.38
1.64
2.46
1.95
Total Coca-Cola Andina
2.11
2.33
1.53
2.33
1.87
2.01
2.32
1.52
2.26
1.85
1.96
2.33
1.39
2.11
1.81
1.86
2.09
1.39
1.95
1.78
1.77
9PRINCIPAL METRICS1325678410
WATER RATIO (WUR) [liter water/liter produced beverage]
GRI:103-1, 103-2; 103-3; 303-1
Andina Chile Renca Plant
2020
2.13
2021
1.96
WATER SOURCE (M3/YEAR)
GRI:103-1, 103-2; 103-3; 303-1
2017
2018
2019
2020
2021
Groundwater
6,164,458
5,815,873
5,545,021
5,249,830
5,323,868
Network
Surface
Rain
Others
1,564,021
1,413,471
1,307,319
978,097
1,081,408
0
147,865
360,527
386,842
354,143
1,499
1,668
999
396
0
0
44
83,197
545
0
Total water used
7,729,978
7,378,877
7,213,910
6,698,362 6,759,963
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2021 WATER SOURCE BY OPERATION [M3/YEAR]
GRI:103-1, 103-2; 103-3; 303-1
PRODUCTION PROCESS WATER USE [M3/YEAR]
GRI:103-1, 103-2; 103-3; 303-1, 303-5
Argentina
Brazil
Chile
Paraguay
Total
Coca-Cola
Andina
2017
2018
2019
2020
2021
Beverages
3,664,965
3,670,273
3,678,612
3,593,513
3,822,870
Groundwater
2,064,258
824,342
1,736,339
698,928
5,323,868
Auxiliary services
4,065,013
3,708,604
3,535,297
3,104,848
2,937,094
Network
Surface
Rain
Others
Total
90,335
714,358
276,715
0
0
0
354,143
545
0
0
0
0
0
0
0
0
1,081,408
354,143
545
0
2,154,593
1,893,388
2,013,054
698,928
6,759,963
Total water used
7,729,978
7,378,877
7,213,910
6,698,362
6,759,963
9PRINCIPAL METRICS1325678410
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EFLUENT DISCHARGE [m3/year]
GRI: 103-1; 103-2; 103-3; 303-4
WASTEWATER DISPOSED AT THIRD PARTY
TREATMENT PLANTS [m3/year]
GRI: 103-1; 103-2; 103-3; 303-4
2017
2018
2019
2020
2021
Own treatment
2,775,067
2,647,028
2,547,336
2,246,407
1,983,532
Third party treatment
1,150,113
1,021,272
1,016,768
939,393
875,135
Total effluent discharge
3,925,181
3,668,300
3,564,104
3,185,800
2,858,667
2017
2018
2019
2020
2021
Argentina
60,830
53,666
50,079
40,046
39,307
Brazil
Chile
0
0
0
0
0
1,089,283
967,606
966,689
899,347
835,828
Paraguay
0
0
0
0
0
Total Coca-Cola Andina
1,150,113
1,021,272
1,016,768
939,393
875,135
WASTEWATER DISPOSED AT
OWN TREATMENT PLANTS [m3/year]
GRI: 103-1; 103-2; 103-3; 303-4
WATER REUSE
(Internally and/or other effluent treatment) [m3/year]
GRI: 103-1; 103-2; 103-3; 303-4
2017
2018
2019
2020
2021
2018
2019
2020
2021
Argentina
1,581,459
1,464,347
1,297,443
1,330,246
1,077,157
Argentina
0
0
133,357
184,118
Brazil
Chile
655,179
655,503
716,166
496,159
510,280
195,132
197,409
201,370
121,456
89,475
Brazil
Chile
163,089
125,848
83,197
119,382
2,343
2,002
0
20,093
Paraguay
343,298
329,770
332,357
298,546
306,620
Paraguay
55,910
158,638
299,245
432,896
Total Coca-Cola Andina
2,775,067
2,647,028
2,547,336
2,246,407
1,983,532
Total water reused
221,342
286,488
515,799
756,489
9PRINCIPAL METRICS1325678410
Business pillar
VALUE CHAIN
EFFICIENCY AND
PRODUCTIVITY
Material issues
SUSTAINABLE
PACKAGING
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SOLID WASTE GENERATION [gr waste/liter beverage produced]
GRI: 103-1; 103-2; 103-3; 306-1
RECYCLED PET RESIN [Tons/year]
GRI: 103-1; 103-2; 103-3; 306-1, 306-4
2017
2018
2019
2020
2021
Argentina
Brazil
Chile
Paraguay
15.7
6.3
18.8
22.4
Total Coca-Cola Andina
14.5
14.3
6.8
17.5
19.6
13.0
14.7
7.4
20.2
19.2
13.9
13.9
7.8
13.0
18.1
11.8
13.0
7.9
13.9
18.1
11.9
Argentina
Brazil
Chile
Paraguay
2018
1,023
328
0
0
2019
1,129
884
0
0
2020
746
3,371
0
0
2021
1,025
4,937
0
0
Total Coca-Cola Andina
1,351
2,013
4,117
5,962
SOLID WASTE RECYCLED [% on total]
GRI: 103-1; 103-2; 103-3; 306-1; 306-4
RECYCLED PET RESIN [%]
GRI: 103-1; 103-2; 103-3; 306-1
2017
2018
2019
2020
2021
Argentina
89.6%
90.8%
91.4%
91.8%
91.6%
Argentina
Brazil
Chile
88.2%
83.1%
87.3%
90.4%
88.3%
Brazil
80.6%
83.5%
89.1%
89.5%
92.1%
Total Coca-Cola Andina
Paraguay
73.1%
74.3%
84.0%
93.7%
91.6%
Total Coca-Cola Andina
83.8%
84.5%
88.7%
91.1%
91.0%
2019
7.7%
4.0%
3.6%
2020
6.2%
15.3%
7.9%
2021
7.0%
21.4%
10.1%
9PRINCIPAL METRICS1325678410
PET SAVINGS
GRI 103-1; 103-2, 103-3; 301-1; 301-2; 301-3
Total tons saved
[tons/year]
Total US$ saved
[US$/year]
2017
2018
2019
2020
2021
236
1,345
445
413
482
406,346
1,737,476
712,037
488,535
732,838
Note: 2018 includes the APET aseptic line project.
POLYETHYLENE SAVINGS
GRI 103-1; 103-2, 103-3; 301-1; 301-2; 301-3
Total tons saved
[Tons/year]
2021
142
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RETURNABILITY [% sales/NARTD]
2018
2019
Argentina
Brazil
Chile
Paraguay
39.5%
20.1%
34.7%
37.4%
Total Coca-Cola Andina
31.6%
40.3%
22.0%
33.9%
37.5%
31.8%
POST-CONSUMPTION RECOVERY [tn/year]
GRI 103-1; 103-2, 103-3; 301-1; 301-2; 301-3
2020
47.5%
24.2%
36.3%
40.0%
35.1%
2021
43.3%
21.7%
30.5%
38.2%
31.6%
2017
2018
2019
2020
2021
Argentina
20
22
54
500
Brazil
Chile
Paraguay
3,070
5,511
6,106
7,734
29
12
45
9
51
23
145
41
1,257
7,463
133
42
Total Coca-Cola Andina
3,131
5,587
6,234
8,420
8,896
Note: Tons of PET, in the case of Brazil also includes cans.
9PRINCIPAL METRICS1325678410
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CONSUMPTION OF RAW MATERIALS [tons/year]
GRI 103-1; 103-2, 103-3; 306-4; 306-3; 304-5, 306-5
CONSUMO DE MATERIAS PRIMAS [Tn/año]
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018 2019
2020
2021
2017
2018
2019
2020
2021
Virgin plastic PET
17,604 17,026 14,097 11,314 13,577
14,077 15,670
21,335 18,656 18,127 13,540
11,158 12,070 12,612 15,304
5,592
6,196 6,076
5,307
6,213 50,814 50,050 53,578 47,899 53,221
Recycled plastic PET
1,240
1,023
1,129
746
1,025
5,426
1,837
884
3,371
4,937
-
-
-
-
-
-
-
-
Virgin glass
3,492
8,823
3,013
793
355
1,420
283
2,650
1,168
8,167
4,163 10,281 4,579
4,085 102,471 102,233 3,498
Recycled glass
2,875
3,911
1,313
1,116
533
Aluminum
Tetrabrik
-
-
-
658
542
804
487
392
253
309
-
-
-
-
-
-
-
2,200
1,629
2,086
2,351
6,946
3,694
2,949
3,142
901
814
524
860
158
171
-
-
-
-
-
-
976
411
472
504
-
-
-
-
-
1,784
-
-
-
-
-
-
-
-
-
-
-
-
-
6,667
2,860
2,013
4,117
5,962
115,551 115,502 19,442 6,540 4,440
4,503
7,781
3,664
1,116
2,733
-
-
6,946 4,352
3,649 4,117
2,364
1,617
1,249
1,673
Virgin plastic caps
2,009
1,309
1,525
1,553
1,820
2,200
1,995
2,749
2,142
2,245
1,529
1,755
1,819
1,473
1,648
810
717
813
720
779
6,547
5,777 6,906
5,888 6,492
Recycled plastic caps
-
28
-
-
-
-
-
-
-
,
-
Virgin plastic cases
353
599
348
196
344
569
356
774
860
1082
313
Recycled plastic cases
824
986
296
458
802
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28
-
-
-
566
130
19,606
304
185
237
233
20,842
1,259
1,307
1,859
1,789
141
521
6,535
101
61
79
78
7,360
1,087
357
678
1,401
Plastic stretch film
+ shrink film
1,907
2,313
1,791
1,396
1,607
2,696
2,777
2,882
2,735
2,777
399
285
1,315
1,495
1,771
906
152
962
777
845
5,908
5,527 6,950
6,403 7,000
Wood pallets
3,288 115,573 3,353
2,655
4,828
2,958
1,840
3,394
-
2,569
Hardwood pallets
-
-
-
-
-
-
-
-
2,271
-
-
-
-
-
-
-
1,751
2,462
23,709 24,884 662
-
-
-
-
-
-
-
327
29,955 142,297 7,409
4,406 10,186
363
-
-
-
2,271
363
Sugar
Fructose
94,596 88,716 77,713 71,837 75,099 111,571 107,139 111,267 109,007 104,511 73,619 60,503 53,823 67,151 67,857
33,156 29,595 23,872
23,386 32,260 312,942 285,953 266,675 271,381 279,727
9,484
289
1,480
-
1,034
-
-
-
1,727
-
-
-
-
-
-
-
4,056 11,752
10,713
-
9,484
4,345
13,232
12,440 1,034
CO2 (raw material)
8,685
7,394
7,134
7,083
7,778
9,812 9,514
9,677 9,563
9,456
7,808
7,399
7,085
6,441
7,010
2,814
2,868
2,817
2,717
2,822 29,119 27,175 26,713 25,804 27,066
Chapadur hardboard
(pressed cardboard divider)
3,939 1,215,328 3,087
-
-
3,851
344
2,332
2,558
-
-
-
-
-
-
-
-
-
-
3,746
3,379
3,843
-
-
-
-
303
1,867
820
-
269
-
-
-
-
-
-
-
-
68
-
-
-
-
-
-
1,935
2,295
2,308
-
-
-
-
-
-
411
830
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
435
3,939 1,215,739 7,731
3,379 8,129
252
333
404
-
-
-
-
-
-
-
-
-
-
-
-
2,833
6,827 6,090
-
269
150,297 1,463,806 117,329
102,274
116,668
150,729
149,258
163,866 160,219
154,940 105,375
87,047
86,462
98,662
107,402
197,229
174,578 54,290
44,741
45,515 603,630 1,874,689 421,947 405,896 424,525
Cardboard divider
Virgin Ref PET
Recycled Ref PET
Sub totals
9PRINCIPAL METRICS1325678410
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GENERATION OF SOLID WASTE [tons/year]
GRI 103-1; 103-2, 103-3; 306-4; 306-3; 304-5, 306-5
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018 2019
2020
2021
2017
2018
2019
2020
2021
Paper/Cardboard
897
1,049
1,016
834
1,101
880
951
966
884
944
747
544
785
703
1,085
454
546
581
276
211
2,978
3,090
3,348
2,697
3,341
Glass
Caps
Metals
(all except aluminum)
Aluminum
PET
Plastic
(all except PET and caps)
Wood
Organic
4,555
3,406
2,884
1,941
2,009
423
545
790
643
527
5,954
6,460 10,527 4,933
6,175
3,149
2,742
2,820
2,779
2,969 14,081
13,154 17,021
10,296 11,679
278
264
316
315
318
213
229
263
303
262
395
410
403
425
345
29
47
82
86
62
914
950
1,065
1,129
988
140
278
292
184
150
448
379
390
434
510
55
62
112
290
40
259
452
572
267
550
902
1,171
1,366
1,175
1,251
8
18
53
45
40
72
57
40
30
44
10
6
13
12
26
-
-
1
-
-
89
81
107
87
111
2,828
2,774
2,811
2,874
2,357
1,114
1,288
1,421
1,550
1,273
1,837
1,374
1,582
1,777
1,850
327
294
450
443
348
6,106
5,731
6,263
6,644 5,829
1,415
1,493
1,532
1,484
1,652
631
666
774
691
794
816
707
831
726
1,160
400
444
490
434
333
3,262
3,311
3,627
3,335 3,940
950
2,263
2,395
2,605
2,360
2,889
2,716
3,371
3,930
3,783
3,096
3,189
2,182
1,935
2,093
893
950
987
1,034
506
7,828
9,117
8,935
9,504 8,743
-
-
-
-
-
-
7
587
924
1,076
364
255
-
150
206
Others recyclable
4,287
3,151
2,446
1,431
1,491
154
253
68
119
192
-
-
354
51
283
-
-
-
-
-
-
364
262
587
1,074
1,282
13
311
953
1,509 4,442
3,417
3,180
2,554 3,475
Others non-recyclable
2,247
2,539
149
289
1,136
920
1,455
1,274
980
1,193
2,988
2,357
1,850
1,075
962
2,181
1,905
971
419
593
8,336
8,257 4,243
2,763 3,884
Sub totals
17,605 17,235 13,894 12,002 12,616
7,743 8,548 9,944 10,488 10,598 16,262
15,365 18,640 12,077 14,227
7,692
7,393 7,265
6,691
7,082 49,302 48,541 49,744 41,258 44,523
HAZARDOUS WASTE [tons/year]
GRI 103-1; 103-2, 103-3; 301-1; 301-2; 301-3
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018 2019
2020
2021
2017
2018
2019
2020
2021
Treated by local third-parties
1,039
795
878
980
833
46
46
89
123
161
216
218
207
217
153
12
3
24
4
1
1,313
1,062
1,199
1,324
1,148
Note: 100% of hazardous waste is treated nationally in each operation.
PLASTIC CONTAINERS COCA-COLA ANDINA
GRI 103-1; 103-2, 103-3; 306-4; 306-3; 304-5
FOOD LOSS [tons/year]
GRI 103-1; 103-2, 103-3; 306-4; 306-3; 304-5
Weight of all plastic
containers [tons/year]
Percentage of recyclable
plastic packaging [%/total]
Percentage of recycled content
in plastic containers [%]
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
76,325
72,976
77,035
73,661
82,224
Food loss and waste
28,274
37,087
32,593
35,814
29,846
100%
100%
100%
100%
100%
17.2%
14.0%
20.6%
23.6%
27.5%
Used for alternative purposes
575
1,666
1,049
2,128
904
Total Coca-Cola Andina [tons/year]
27,700
35,421
31,543
33,686
28,942
Note: All indicators include film, shrink film, crates, caps and PET resin from returnable and disposable bottles. Label not
included.
9PRINCIPAL METRICS1325678410
Business pillar
VALUE CHAIN
EFFICIENCY AND
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Material issues
ENERGY AND CLIMATE
PROTECTION
MANAGEMENT
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ENERGY CONSUMPTION [MJ/year]
GRI: 302-1; 302-2; 302-3; 302-4; 302-5;
ENERGY CONSUMPTION FROM NON- RENEWABLE SOURCES [MJ/year]
GRI: 302-1; 302-2; 302-3; 302-4; 302-5;
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Argentina
417,306,969 409,235,774
361,853,002 333,985,664 350,182,948
Electricity
344,041,575 351,777,338 384,559,873 364,996,908 375,850,814
Others
-
-
-
-
495,190,627 462,150,180 333,149,539
358,900,370 335,197,584 350,697,346
231,575,870
271,475,113
246,493,622 238,674,407 238,318,360
Total Coca-Cola Andina 998,703,895 994,036,622 854,090,997 797,347,764 683,846,884
Brazil
Chile
Paraguay
193,164,293 192,404,299
193,682,342
174,128,314
187,846,333
Total Coca-Cola Andina
1,186,088,706 1,224,892,525 1,186,588,839 1,111,785,293
1,152,198,455
ENERGY USE RATIO (EUR)
[MJ/liter of beverage produced]
GRI: 302-1; 302-2; 302-3; 302-4; 302-5;
ENERGY CONSUMPTION FROM RENEWABLE SOURCES [MJ/year]
GRI: 302-1; 302-2; 302-3; 302-4; 302-5;
2017
2018
2019
2020
2021
Biomass
64,704,645 64,156,777
62,670,042
58,072,592
63,641,780
2017
2018
2019
2020
2021
Hydroelectric
111,280,320 149,584,111 224,277,140 99,745,025
106,773,375
Argentina
0.350
0.360
0.361
0.359
0.339
Brazil
Chile
0.280
0.280
0.284
0.271
0.280
0.300
0.265
0.253
0.275
0.231
Paraguay
0.530
0.510
0.497
0.470
0.479
Solar
Wind
Biogas
Others
605
0
202
0
0
23,963
0
32,491,559
138,335,286
0
11,399,241
17,114,813
13,059,101
18,284,626
8,229,543
0
0
0
0
289,682,910
Total Coca-Cola Andina
0.324
0.334
0.323
0.309
0.301
Total Coca-Cola Andina
187,384,811
230,855,903
332,497,842
314,437,529 468,351,571
9PRINCIPAL METRICS1325678410
EMISSIONS [kg CO2 equivalent/year]
GRI: 305-1; 305-2; 305-3; 305-4
2017
2018
2019
2020
2021
Total Scope 1
53,155,332
74,307,183
45,977,832
63,139,775
57,393,008
Total Scope 2
61,189,906
37,073,614
55,413,868
61,249,312
52,223,594
Total Scope 3
107,159,092 203,339,429
210,013,782 1,209,799,099 885,549,836
Total Coca-Cola Andina
221,504,331 314,720,226 311,405,482 1,334,188,186 995,166,439
Note: In 2020 the methodology was updated, and scope 3 coverage was expanded, including cold equipment, raw
materials, logistics and waste disposal.
Note: In 2021, methodology was modified.
EMISSIONS RATIO TOTAL COCA-COLA ANDINA
[gr CO2 equivalent/liter of beverage produced]
GRI: 305-1; 305-2; 305-3; 305-4
2017
2018
2019
2020
2021
Scopes 1 + 2 + 3
60.52
47.41
40.86
369.69
260.32
Scopes 1 + 2
31.20
30.35
27.56
34.47
28.67
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COLD EQUIPMENT
GRI: 305-1; 305-2; 305-3; 305-4
Cold equipment with
energy savings [%]
Total cold equipment emissions
[kg CO2 equivalent/year]
TRUCKS
GRI: 305-1; 305-2; 305-3; 305-4
Own trucks
[number/year]
Third party trucks
[number/year]
Total transportation emissions
(own + third parties)
[kg Co2 equivalent/year]
2018
2019
2020
2021
61%
79%
91%
91%
DISTANCE TRAVELLED BY TRUCKS [KM/YEAR]
2018
2019
2020
2021
Own trucks
12,863,964
13,592,446
17,260,419
20,839,551
Third party trucks
69,728,243
70,550,198
70,153,983
81,197,579
140,716,949
223,592,450
187,148,209
196,574,200
Total Coca-Cola Andina
82,592,207
84,142,644
87,414,402
102,037,129
2018
2019
2020
999
1,123
1,133
2021
1,218
1,735
1,706
1,691
1,571
-
-
75,962,136
100,377,135
TYPE OF TRUCKS [amount/year]
EURO V standard or higher
Others
Total Coca-Cola Andina
Note: Includes own and third party trucks.
2019
1,227
1,602
2,829
2020
1,233
1,591
2,824
2021
1,616
1,173
2,789
9PRINCIPAL METRICS1325678410
Business pillar
Material issues
VALUE CHAIN
EFFICIENCY AND
PRODUCTIVITY
SUPPLY CHAIN
MANAGEMENT
NUMBER OF SUPPLIERS [amount/year]
GRI 102-9; 204-1
2017
2018
2019
2020
2021
Argentina
2,369
2,409
2,325
2,227
Brazil
Chile
4,130
4,011
4,160
3,491
2,249
1,764
1,850
1,744
2,140
3,459
1,719
Paraguay
1,192
1,197
1,186
1,042
1,005
KEY SUPPLIERS ASSESSED [amount/year]
Total Coca-Cola Andina
9,940
9,381
9,521
8,504
8,323
NATIONAL SUPPLIERS [% on total]
GRI: 204-1
2017
2018
2019
2020
2021
Argentina
97.0%
96.8%
96.3%
96.3%
96.1%
Argentina
Brazil
Chile
Paraguay
Brazil
Chile
99.7%
99.8%
99.7%
99.7%
99.5%
95.4%
95.5%
96.8%
94.9%
92.0%
Total Coca-Cola Andina
2018
238
40
19
68
365
Paraguay
87.8%
90.2%
89.0%
94.0%
90.0%
SUPPLIERS ASSESSED [AMOUNT/YEAR]
GRI 308-1; 414-1
EXPENSE ON NATIONAL SUPPLIERS [% on total]
GRI: 204-1
2017
2018
2019
2020
2021
Argentina
Argentina
98.6%
95.9%
94.9%
95.1%
95.4%
Brazil
Chile
99.3%
98.5%
98.4%
99.2%
98.7%
98.9%
97.0%
98.9%
98.0%
98.8%
Paraguay
Brazil
Chile
2018
471
238
66
542
2019
278
36
146
48
508
2019
511
236
280
460
Paraguay
64.5%
60.4%
62.0%
49.1%
58.0%
Total Coca-Cola Andina
1,317
1,487
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2020
2021
59
46
176
52
333
2020
303
253
312
496
1,364
68
52
219
68
407
2021
313
258
375
425
1,371
9PRINCIPAL METRICS1325678410
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Business pillar
Material issues
AGILITY,
FLEXIBILITY AND
COMMITMENT
TALENT AND
DIVERSITY
COLLABORATORS BY OPERATION AND GENDER
GRI: 102-8; 405-1
2017
2018
2019
2020
2021
Women
Men
Total Women
Men
Total Women Men
Total Women
Men
Total Women Men
Total
Argentina
Brazil
Chile
Paraguay
Holding
279
826
413
151
17
2,967
3,246
272
2,904
3,176
264
2,795
3,059
276
2,827
3,103
298
2,912
3,210
6,954
7,780
1,000
6,895
7,895
1,083
6,949
8,032
1,181
6,636
7,817
1,505
6,385
7,890
3,006
3,419
1,430
1,581
22
39
436
167
17
2,919
3,355
1,433
1,600
22
39
575
181
19
4,233
4,808
1,465
1,646
22
41
752
181
17
4,153
4,905
812
5,080
5,892
1,307
1,488
175
1,428
1,602
24
41
18
24
42
Total collaborators
1,686
14,379
16,065
1,892
14,173
16,065
2,122
15,464
17,586
2,407
14,947
17,354
2,808
15,829
18,636
Note: FTE = Full time employees
COLLABORATORS BY GENDER AND CATEGORY, 2021
GRI: 102-8; 405-1
Argentina
Brazil
Chile
Paraguay
Women
Men
Women
Men
Women
Men
Women
Men
Managers and principal officers (N; N-1; N-2)
Professionals and technicians in charge of staff (N-3)
13
50
Professionals and technicians not in charge of staff (N-3)
108
82
425
148
14
130
318
34
293
367
Other collaborators
Seasonal
Total collaborators
Note: Holding excluded.
60
67
1,815
1,043
5,691
443
0
0
298
2,912
1,505
6,385
14
75
206
392
124
812
51
275
350
3,412
992
17
31
68
59
0
23
130
96
1,063
116
5,080
175
1,428
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COLLABORATORS BY GENDER AND AGE, 2021
GRI: 102-8; 405-1
Younger the 18
Between 18 and 29
Between 30 and 40
Between 41 and 50
Between 51 and 60
Between 61 and 70
Older than 70
Argentina
Brazil
Chile
Paraguay
Women
Men
Women
Men
Women
Men
Women
Men
0
49
0
392
152
1,180
75
22
1
0
1,037
270
33
0
39
688
533
188
50
7
0
41
1,868
2,479
1,424
542
28
3
0
274
325
137
72
4
0
0
1,541
1,755
1,051
587
137
10
0
73
73
26
3
0
0
0
539
661
166
58
4
0
Total collaborators
298
2,912
1,505
6,385
812
5,080
175
1,428
Note: Holding excluded
Note: Numbers in FTE unit (full-time equivalent employees).
NEW HIRINGS BY AGE AND GENDER, 2021
GRI: 102-8; 405-1
Younger than 30
Between 30 and 50
Older than 50
Total collaborators
Note: Holding excluded
Argentina
Brazil
Chile
Paraguay
Women
Men
Women
Men
Women
Men
Women
Men
19
6
0
25
31
19
0
50
327
278
9
732
751
54
614
1,537
60
34
1
95
73
108
17
198
7
6
0
13
21
15
1
37
9PRINCIPAL METRICS1325678410
PEOPLE DEVELOPMENT
TRAINING AND EDUCATION
GRI: 404-1; 410-1; 412-2
2017
2018
2019
2020
2021
Training hours for women
35.466
34.828
48.229
40.045
63.715
Training hours for men
194,769
294,563
240,668
156,232
253,455
Total training hours
230,235
329,391
288,897
196,277
317,170
Note: As of 2020, training hours of own personnel are only considered.
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AVERAGE TRAINING AND EDUCATION
GRI: 404-1; 410-1; 412-2
2017
2018
2019
2020
2021
Average training hours for women
20.8
18.4
22.7
19.4
27.3
Average training hours for men
13.5
19.0
15.6
11.6
18.5
Average training hours per employee
14.3
19.0
16.4
12.6
19.8
Note: As of 2020, training hours of own staffing are only considered.
DISTRIBUTION BY SENIORITY, 2021
GRI: 102-8; 405-1
DISTRIBUTION OF EDUCATION BY TOPIC
GRI: 404-1; 410-1; 412-2
Argentina
Brazil
Chile
Paraguay
2017
2018
2019
2020
2021
Less than 3 years
Between 3 and 6 years
Between 6 and 9 years
Between 9 and 12 years
More than 12 years
Total collaborators
604
282
488
354
1,482
3,210
4,235
1,907
581
566
601
3,674
865
375
349
629
499
503
99
214
287
Development of work skills
48.0%
44.0%
41.6%
40.5%
45.9%
Development of abilities and employability
28.0%
25.0%
19.7%
20.4%
16%
Work safety
17.0%
23.0%
26.7%
27.2%
16.8%
Sustainability and environment
4.0%
3.0%
5.9%
6.5%
18.1%
Ethics and code of conduct
3.0%
5.0%
6.2%
5.4%
3.2%
7,890
5,892
1,602
Note: own staffing
Note: Holding excluded.
Note: Numbers in FTE unit (full-time equivalent employees).
9PRINCIPAL METRICS1325678410
EDUCATION HOURS BY GENDER AND CATEGORY, 2021
GRI: 404-1; 410-1; 412-2
Argentina
Brazil
Chile
Paraguay
Women
Men
Women
Men
Women
Men
Women
Men
Managers and principal officers (N; N-1; N-2)
1,345
7,873
172
263
1,204
3,524
Professionals and technicians in charge of staff (N-3)
1,123
9,599
2,299
4,440
6,805
22,353
190
669
212
2,777
Professionals and technicians in charge of staff (N-3)
5,957
7,673
5,835
7,759
16,392
23,933
931
1,080
Other collaborators
Seasonal
758
822
30,420
11,501
75,561
6,628
39,942
9,645
0
0
400
810
82
0
3,614
1,874
Total education hours
10,005
65,209
19,807
88,023
31,429
90,562
1,872
9,557
Note: Holding excluded. Own staffing.
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PERCENTAGE OF COLLABORATORS WITH PERFORMANCE EVALUATION
GRI: 404-3
2017
2018
2019
2020
2021
Argentina
65.7%
88.5%
87.0%
55.4%
96.5%
Brazil
Chile
100.0%
100.0%
100.0%
100.0%
100.0%
96.0%
100.0%
97.3%
97.1%
98.2%
Paraguay
61.0%
57.9%
58.0%
74.9%
88.8%
Note: on own staffing.
UNIONIZATION RATE
GRI:102-41
2017
2018
2019
2020
2021
Argentina
67.4%
66.0%
66.0%
66.6%
67.4%
Brazil
Chile
9.7%
12.2%
9.6%
8.3%
11.4%
52.5%
50.9%
49.6%
52.2%
40.1%
Paraguay
35.0%
35.5%
24.9%
27.6%
29.5%
Total Coca-Cola Andina
33.0%
33.3%
31.8%
32.8%
31.6%
9PRINCIPAL METRICS1325678410
STARTING BASE SALARY / LEGAL MINIMUM WAGE RATIO
GRI:102-39
2017
2018
2019
2020
2021
Argentina
361.0%
372.0%
329.2%
330.6%
316.5%
Brazil
Chile
106.0%
106.0%
106.4%
115.4%
107.6%
100.0%
120.0%
173.3%
143.4%
182.9%
Paraguay
116.0%
118.0%
124.1%
114.0%
126.1%
Note: Minimum initial base salary without additions.
AVERAGE MONTHLY TURNOVER RATE
GRI 401-1
Argentina
Brazil
Chile
Paraguay
2018
0.4%
2.3%
1.2%
0.4%
2019
0.4%
1.9%
1.3%
0.3%
2020
0.2%
2.7%
1.1%
0.3%
2021
0.4%
2.4%
1.2%
0.4%
Note: Equity investees excluded.
Voluntary turnover rate Coca-Cola Andina 2021: 0.5%.
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DIVERSITY AND INCLUSION
NATIONALITY
GRI: 102-8; 405-1
Argentina
Brazil
Chile
Paraguay
Others
2018
2019
2020
3,148
7,529
3,072
1,592
724
3,024
3,093
8,012
7,803
4,246
4,228
1,627
1,474
677
756
2021
3,203
7,878
4,909
1,588
1,058
Note: Numbers in FTE unit (full-time equivalent employees).
PEOPLE WITH DISABILITIES AND SOCIAL MINORITIES
GRI: 102-8; 405-1
INTERNAL CLIMATE EVALUATION [% favorability]
2017
2018
2019
2020
2021
2017
2018
2019
2020
Argentina
Argentina
Brazil
Chile
Paraguay
64%
72%
66%
64%
64%
72%
66%
64%
69%
76%
67%
70%
69%
76%
67%
70%
Note: Equity investees excluded.
In 2021, no internal climate assessment was conducted.
Brazil
Chile
Paraguay
-
220
-
-
-
356
14
-
-
348
31
-
-
394
42
-
436
1
365
47
1
414
Total Coca-Cola Andina
220
370
379
Note: Equity investees excluded.
Note: Numbers in FTE unit (full-time equivalent employees).
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NUMBER OF COLLABORATORS WHO TOOK LEAVE OF ABSENCE (maternity and paternity)
GRI: 401-3
2018
2019
2020
2021
Women
Men
Women
Men
Women
Men
Women
Men
Argentina
Brazil
Chile
Paraguay
22
38
30
10
118
192
90
56
Total Coca-Cola Andina
100
456
22
33
25
17
97
104
220
109
65
14
56
43
15
100
168
96
60
17
50
33
8
66
198
72
46
498
128
424
108
382
NUMBER OF COLLABORATORS WHO CONTINUE TO WORK AFTER LEAVE OF ABSENCE (maternity and paternity)
GRI: 401-3
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2018
2019
2020
2021
Women
Men
Women
Men
Women
Men
Women
Men
22
30
28
10
90
118
173
s/d
54
345
21
30
18
17
86
101
198
s/d
61
14
41
40
14
97
149
82
58
360
109
386
16
41
29
7
93
65
167
70
45
347
9PRINCIPAL METRICS1325678410
HEALTH AND SAFETY
GRI: 403-2; 403-3; 403-4
ABSENTEEISM RATE [%/year]
2017
2018
2019
2020
2021
Argentina
2.85%
2.46%
2.37%
1.97%
2.95%
Business pillar
Material issues
AGILITY,
FLEXIBILITY AND
COMMITMENT
GRI:413-1
RELATIONSHIP WITH
THE COMMUNITY
Brazil
Chile
1.50%
1.35%
1.56%
2.10%
2.28%
NUMBER OF BENEFICIARIES IN THE COMMUNITY [#/year]
4.00%
4.03%
3.35%
5.35%
7.05%
2017
2018
2019
2020
2021
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Paraguay
1.30%
1.76%
1.69%
1.60%
1.03%
ACCIDENT RATE [LTIR]
GRI: 403-9
Argentina
Brazil
Chile
Paraguay
Note: Equity investees excluded.
2017
2018
2019
2020
2021
4.0
0.6
2.4
0.6
2.6
0.4
1.6
0.4
3.1
0.4
0.8
0.5
2.1
0.4
2.0
0.1
2.0
0.4
1.8
0.4
Argentina
422,245
224,991
228,283
352,597
387,644
Brazil
Chile
7,000
4,956
8,364
310,385
39,075
480,425
1,325,795
353,038
1,036,180
159,671
Paraguay
824
28,638
11,864
46,520
83,513
Total Coca-Cola Andina
910,494
1,584,380
601,549
1,745,682
669,906
HOURS OF VOLUNTEER WORK [hrs/year]
Argentina
Brazil
Chile
Paraguay
2017
2018
2019
2020
2021
324
-
974
12
2,496
1,111
-
1,525
12
322
180
124
907
252
849
-
870
312
13
-
Total Coca-Cola Andina
1,310
4,033
1,737
2,008
1,195
DAYS OF LEAVE DUE TO ACCIDENT RATE [LTISR]
GRI: 403-9
LITERS OF BEVERAGE DONATED [liters/year]
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Argentina
Brazil
Chile
Paraguay
Note: Equity investees excluded.
117.9
6.6
53.3
6.9
75.5
5.5
27.4
1.7
87.4
4.8
20.6
3.5
80.7
3.9
37.3
0.3
57.5
4.6
30.8
3.6
Argentina
210,376
663,304
407,851
945,117
377,737
Brazil
Chile
-
4,713
3,279
122,787
196,604
360,221
985,433
610,710
549,124
280,783
Paraguay
4,178
12,189
27,510
511,141
48,866
Total Coca-Cola Andina
574,775
1,665,639
1,049,350
2,128,169
903,990
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Our first SASB report is in 2021, and we will
continue working on it.
To improve the analysis we include our 2020
results.
SUSTAINABILITY DISCLOSURE TOPICS AND ACCOUNTING METRICS
FOOD AND BEVERAGE SECTOR. NON ALCOHOLIC BEVERAGES. TABLE 1
Topic
Accounting parameter
Category
Measurement unit
Code
2020 Response
2021 Response
Fleet fuel
management
Energy
management
Water
Management
Fleet fuel consumed
Gigajoules (GJ)
Quantitative
FB-NB-110a.1
Percentage renewable
Percentage (%)
461,080
5.2%
524,737
6.9%
Operating energy consumed
Gigajoules (GJ)
7,453,457
7,750,879
Percentage of grid electricity
Quantitative
Percentage (%)
FB-NB-130a.1
Percentage renewable
Percentage (%)
Total water withdrawn
Total water consumed
Percentage of water withdrawn in
regions of high or extremely high
initial water stress
Percentage of water consumed in
regions of high or extremely high
initial water stress
Thousand cubic meters
(m³)
Thousand cubic meters
(m³)
Quantitative
Percentage (%)
FB-NB-140a.1
Percentage (%)
95.4%
58.6%
6,698
3,594
25.2%
22.0%
75.8%
54.1%
6,760
3,823
26.0%
23.5%
Description of water management
risks and analysis of mitigation
strategies and practices
Debate and
analysis
n/a
FB-NB-140a.2
Chapter 4 of the
integrated report.
Chapter 4 of the
integrated report.
9PRINCIPAL METRICS1325678410
Topic
Accounting parameter
Category
Measurement unit
Code
2020 Response
2021 Response
Revenues from non-caloric
and low-caloric beverages
MUS$
628.7
(Only NARTD portfolio)
805.5
(Only NARTD portfolio)
Revenues from beverages
without added sugar
Quantitative
MUS$
FB-NB-260a.1
93.1
(Only NARTD portfolio)
122.1
(Only NARTD portfolio)
Health and
nutrition
Revenues from beverages without
added sugar
MUS$
328.6
(Only NARTD portfolio)
407.2
(Only NARTD portfolio)
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Analysis of the process of
identification and management
of products and ingredients
related to nutritional and health
concerns of consumers
Percentage of advertisements
(1) made for children and (2)
made for children promoting
products that comply with
dietary recommendations
Revenues from products
labeled as (1) containing
genetically modified organisms
(GMOs) and (2) not containing
GMOs
Number of incidents of non-
compliance with regulatory or
industry codes for labeling or
marketing
Total amount of monetary
losses as a result of legal
proceedings related to labeling
or marketing practices
Product
labeling and
marketing
Debate and
analysis
n/a
FB-NB-260a.2
Chapter 3 of
integrated report.
Chapter 3 of
integrated report.
Percentage (%)
FB-NB-270a.1
As a member of the Coca-Cola
System, we comply with the
respective responsible marketing
guidelines. (see chapter 3 of the
integrated report).
As a member of the Coca-Cola
System, we comply with the
respective responsible marketing
guidelines. (see chapter 3 of the
integrated report).
Communication
currency
FB-NB-270a.2
None: we do not produce or sell
GMOs.
None: we do not produce
or sell GMOs.
Quantitative
Number
FB-NB-270a.3
Zero incidents of non-
compliance in 2020.
See GRI Content Index
(417-2 and 417-3).
Zero incidents of non-
compliance in 2021.
See GRI Content Index
(417-2 and 417-3).
Communication
currency
FB-NB-270a.4
Zero incidents of non-
compliance in 2020.
See GRI Content Index
(417-2 and 417-3).
Zero incidents of
non-compliance in 2021.
See GRI Content Index
(417-2 and 417-3).
9PRINCIPAL METRICS1325678410
Topic
Accounting parameter
Category
Measurement unit
Code
2020 Response
2021 Response
(1) Total weight of containers
Tons (Tn)
(2) Percentage made from recycled
or renewable materials
Quantitative
Percentage (%)
FB-NB-410a.1
Packaging life
cycle management
(3) Percentage that is recyclable,
reusable or compostable
Percentage (%)
96,271
6.1%
100%
116,698
8.9%
100%
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Analysis of strategies to reduce the
environmental impact of packaging
throughout its life cycle
Debate and
analysis
n/a
FB-NB-410a.2
Chapter 4 of integrated report.
Chapter 4 of integrated report.
Environmental
and social impacts
of the ingredient
supply chain
Ingredient
supply
Analysis of strategies to
reduce the environmental
impact of packaging
throughout its life cycle
(2) rate of corresponding
corrective actions for
(a) major and (b) minor
nonconformities
Percentage of beverage
ingredients sourced from regions
of high or extremely high initial
water stress
List of priority beverage
ingredients and description
of sourcing risks due to
environmental and social
considerations
Ratio
Quantitative
FB-NB-430a.1
Ratio
-
-
Quantitative
Percentage (%)
by cost
FB-NB-440a.1
-
-
-
-
Debate and
analysis
n/a
FB-NB-440a.2
GRI Content index
(205-2, 308-1,
407-1, 408-1, 409-1, 414-1).
GRI Content index
(205-2, 308-1,
407-1, 408-1, 409-1, 414-1).
9PRINCIPAL METRICS1325678410
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TABLE 2 ACTIVITY PARAMETERS
Activity parameter
Category
Measurement unit
Code
2020 Response
2021 Response
Volume of products sold
Quantitative
Million hectoliters
(Mhl)
FB-NB-000.A
Number of production facilities
Quantitative
Number
FB-NB-000.B
41.7
10
47.0
10
Total road miles traveled by the fleet
Quantitative
Miles
FB-NB-000.C
54,316,791
63,402,932
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Information exhibits
10INFORMATION EXHIBITS132567894
THE COMPANY IS EXPOSED
TO CERTAIN ECONOMIC,
POLITICAL, SOCIAL AND
COMPETITIVE CONDITIONS.
IF ANY OF THE FOLLOWING
RISKS MATERIALIZE, IT
COULD SIGNIFICANTLY
AND ADVERSELY AFFECT
OUR BUSINESS, OPERATING
RESULTS, FINANCIAL
CONDITION AND PROSPECTS.
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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. 65% and 61% of our
net sales for 2020 and 2021, respectively,
were derived from the distribution of soft
drinks under The Coca-Cola Company
trademarks, while 18% and 22% of our net
sales for 2020 and 2021, respectively, were
derived from the distribution of other
beverages also bearing trademarks owned
by The Coca-Cola Company. In addition,
The Coca-Cola Company currently owns,
directly or through its subsidiaries, 14.65%
of our Series A shares (representing 7.33% of
our total shares) and benefits from certain
rights under a shareholders’ agreement. We
produce, market and distribute
Coca-Cola products through standard bottler
agreements between our bottler subsidiaries
and The Coca-Cola Company.
The Coca-Cola Company has the ability to
exert a substantial influence on the business
of the Company through its rights under
the bottler agreements. According to the
bottler agreements, The Coca-Cola Company
unilaterally sets the prices for Coca-Cola
concentrate that they sell to us.
The Coca-Cola Company may in the future
increase the price we pay for the concentrate,
increasing our costs.
The Coca-Cola Company also monitors
our prices and has the right to review
and approve our marketing, operating
and advertising plans. These factors may
impact our profit margins, which could
adversely affect our net income and results
of operations.
Our marketing campaigns for Coca-Cola
products are designed and controlled by
The Coca-Cola Company.
The Coca-Cola Company also makes
significant contributions to our marketing
expenses, although it is not required to
contribute a particular amount. Accordingly,
The Coca-Cola Company may discontinue
or reduce such contribution at any time.
Pursuant to the bottler agreements, we are
required to submit a business plan to
The Coca-Cola Company for prior approval
on a yearly basis. In accordance with our
bottler agreements, The Coca-Cola Company
may, among other things, require that we
demonstrate the financial ability to meet
our business plan, and if we are not able
to demonstrate our financial capacity, The
Coca-Cola Company may terminate our
rights to produce, market and distribute
Coca-Cola soft drinks or other Coca-Cola
beverages in territories where we have such
approval. Under these bottler agreements,
we are prohibited from producing, bottling,
distributing or selling any products that
could be substituted for, be confused with
or be considered an imitation of soft drinks
or other beverages and products under the
trademarks of The Coca-Cola Company.
We depend on The Coca-Cola Company
to renew our bottler agreements, which are
subject to termination by
The Coca-Cola Company in the event we
default or upon expiration of their respective
terms. We currently are party to four bottler
agreements: one agreement for Chile, which
expires in January 2023, one agreement for
Brazil, which expires in October 2022, one
agreement for Argentina, which expires in
September 2022, and one agreement for
Paraguay, which is currently under renewal.
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 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 as 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
10INFORMATION EXHIBITS132567894
transparency related to our products and
packaging; and competitive product and
pricing pressures. While we have been
offering our products through online
platforms and websites, if we do not adapt
our product offer to the needs of our
customers and changes in their lifestyles,
our business could be affected. Also, while
we have reduced the amounts of sugar in
multiple beverages across our portfolio and
increased availability of low or no-calorie
soft drinks, if we are unable to successfully
adapt in this environment, our participation
in the sales of beverages and financial results
in general would be negatively affected.
Increased concern about the health effects of
sugar and other sweeteners in beverages could
result in changes to the beverage business.
Consumers, public health officials and
government agencies in the majority of
our markets, are increasingly concerned
with public health consequences associated
with obesity, particularly among young
people. Additionally, some researchers,
health advocates and dietary guidelines
are encouraging consumers to reduce
consumption of sugar-sweetened beverages
and beverages sweetened with nutritive or
alternative sweeteners. Increasing public
concern about these issues, the possibility
of taxes on sugar-sweetened beverages or
other sweeteners, additional governmental
regulations concerning the marketing,
labeling, packaging or sale of our beverages
and any negative publicity resulting
from actual or threatened legal actions
against beverage companies relating to the
marketing, labeling or sale of beverages may
reduce demand for our products or increase
the cost, which could adversely affect our
profitability.
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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, the COVID-19
pandemic 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. Recently, global fuel prices have
increased significantly as a result of Russia’s
invasion of Ukraine. 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, poor water quality and energy
shortages 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. 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.
Some of the countries in which we operate
have experienced prolonged periods of
drought. For example, in Brazil we have
experienced periods of drought and
water quality problems, all of which may
directly affect the standard of our products
and production costs, especially if water
treatment ends up being necessary. In the
event that these drought periods continue
and are prolonged over time, the costs of our
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operations could be significantly affected
due to water scarcity and consequent power
shortages. Similarly, in the event that a
drought situation worsens, the authorities
could be forced to issue new laws and
regulations that could limit or restrict the
sale of our products, which could adversely
affect our financial results.
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. In Chile particularly,
discussions are beginning to take place
relating to the framework on ownership
of water resources. In the event that these
discussions lead to relevant changes in
regulations regarding the ownership or use
of water resources, the costs of our operation
could be significantly affected.
We cannot assure you that water will be
available in sufficient quantities and/or
quality to meet our future production needs
or will prove sufficient to meet our current
water supply needs.
Climate change can create transition risks,
physical risks, and other risks that could
adversely affect us.
There is an increasing concern over the risks
of climate change and related environmental
sustainability matters. Climate change may
imply different drivers of operational and
financial risks that could adversely affect us:
- Transition risks associated with the move to a
low-carbon economy, such as through policy,
regulatory and technological changes, which
could increase our exposures and impact our
strategies.
- Physical risks related to discrete events,
such as flooding and wildfires, and extreme
weather impacts and longer term shifts in
climate patterns, such as a more frequent
and prolonged drought, extreme heat and
sea level rise. Additionally, and as mentioned
before, water scarcity and poor water quality
are one of the main consequences of climate
change and may impact directly on our
business, considering that water is one of our
most important commodities. Such events
could disrupt our operations or those of third
parties on which we rely and do business
with, including through direct damage to
assets and indirect impacts from supply chain
disruption and market volatility.
commodities, such as water and electricity
usage, increasing our production costs.
As climate risk is interconnected with all key
risk types, we have developed and continue
to enhance processes to embed climate risk
considerations into our risk management
strategies; however, because the timing
and severity of climate change may not be
predictable, our risk management strategies
may not be effective in mitigating climate
risk exposure.
These primary drivers could materialize,
among others, in the following risks:
- Credit risks: Physical climate change could
lead to increased exposure of companies
with business models not aligned with the
transition to a low-carbon economy and
face a higher risk of reduced corporate
earnings and business disruption due to new
regulations or market shifts.
- Market risks: Market changes in the most
carbon-intensive sectors could affect
energy and commodity prices, corporate
bonds, equities and certain derivatives
contracts. Increasing frequency of severe
weather events could affect macroeconomic
conditions, weakening fundamental factors
such as economic growth, employment and
inflation.
- Operational risks: Severe weather events
could directly impact business continuity
and operations both of customers and ours.
- Reputational risk: Our reputation may be
damaged as a result of our practices and
decisions related to climate change and
the environment, or to the practices or
involvement in certain industries or projects
associated with causing or exacerbating
climate change.
- Cost increase risk: to protect the
environment, authorities may tax some
natural resources or activities in relation with
Any of the conditions described above
could have a material adverse effect on our
business, financial condition and results of
operations.
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. Furthermore, in Argentina,
on November 12, 2021, the “Healthy
Nutrition Law” (Law No. 27642), known as
the “Food Labelling Law,” was published
and became effective in November 21, 2021.
This law mandates the display of warning
labels on food and beverages containing
an excess of critical ingredients shall bear
the following warning labels: “excess
of sugar,” “excess of sodium,” “excess of
saturated fats” and “excess of total fats.”
Cautionary warnings on food and beverages
containing artificial sweeteners and caffeine
are required to read as follows: “Contains
artificial sweeteners. Not recommendable
for children” and “Contains caffeine. Avoid
child consumption.” We cannot predict at
this time whether these requirements will
have an impact on our sales in Argentina.
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. Also, these requirements
may adversely affect sales of our products
and our results of operations.
Our business may be adversely affected if we are
unable to maintain brand image and product
quality.
Our beverage business is highly dependent
on maintaining the reputation of our
products in the countries where we operate.
If we fail to maintain high standards for
product quality, our reputation and ability
to remain a distributor of The Coca-Cola
Company beverages in the countries where
we operate could be jeopardized. Negative
publicity or incidents related to our products
may reduce their demand and could have
a material adverse effect on our financial
performance. If any of our products is
defective or found to contain contaminants,
or causes injury or illness, we may be subject
to legal claims filed by consumers, product
recalls, business interruptions and/or other
liabilities.
We take significant precautions in
order to minimize any risk of defects or
contamination in our products. These
precautions include quality-control
programs for raw materials, the production
process and our final products. We also have
established procedures to correct as soon as
practicable any problems that are detected.
However, the precautions and procedures we
implement may not be sufficient to protect
us from potential incidents.
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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.
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 have caused 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 outbreaks of
COVID-19 subside, we cannot predict whether
subsequent outbreaks, including from new
variants of the virus, 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. Additionally,
we may experience raw material supply
disruptions due to COVID-19 restrictions.
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.
The outbreak of the Coronavirus 2019
(COVID-19), which was 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
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 or any other unknown disease,
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
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
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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. Also, new standards
or regulations over data security or the
handling of personal information, in the
countries where we operate, may increase our
costs in order to comply with those potential
regulations. 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.
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.
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
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.
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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.
Such increased expenses may have a material
adverse effect on our results of operations
and financial position. To the extent we
determine that it is not financially sound
for us to continue to comply with such laws
and regulations, we may have to curtail or
discontinue our activities in the affected
business areas.
In addition, concerns over the
environmental impact of plastic may reduce
the consumption of our products sold
in plastic bottles or result in additional
taxes that could adversely affect consumer
demand. In Chile, in August, 2021, Law No.
21,368 was enacted, establishing limits on
the generation of disposable products and
regulating the use of plastics. Among the
requirements imposed by this new law is the
obligation to include a percentage of plastic
collected and recycled in the country in
disposable plastic bottles. This percentage
cannot be less than 15% by 2025, reaching
70% by 2060. In addition, beverage sellers
are required to offer beverages in returnable
bottles and to receive these containers from
consumers. Additionally, Law No. 20,920
passed in 2016, sets the framework for waste
management, the extended liability of the
producer and the promotion of recycling,
which aims to reduce waste generation and
encourage reuse, recycling and other types
of valorization, in order to protect people’s
health and the environment.
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
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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 in 2014 Law No.
20,780 was enacted which was subsequently
amended by Law No. 20,899, in 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
addition, the newly elected government of
Mr. Gabriel Boric has made tax reform one
of its priorities in order to have resources to
finance changes promised during election
campaign, aiming to increase tax revenues
by 5.0% of Chile’s GDP in 4 years and up to
8.0% within an 8-year period. The reform
may include a change to a non-integrated
tax system, which would mean that taxes
paid at corporate level may not be used as
credit for taxes to be paid at personal level,
potentially affecting the effective returns for
our shareholders.
In Argentina, in June 2021, a new tax
reform (Law 27,630) was enacted. Under
this new tax reform, which became
effective for the 2021 fiscal period, the
income tax rate is the following: (i) for
companies with accumulated net earnings
of AR$5,000,000 (most of the small and
medium size companies), the income
tax rate will be of 25%; (ii) for companies
with accumulated net earnings between
AR$5,000,000 and AR$50,000,000, a fixed
tax of AR$1,250,000 plus a 30% tax rate over
the excess from AR$5,000,000; and (iii) for
companies with accumulated net earnings
over AR$50,000,000 (which is the case for
the Company), a fixed tax of AR$14,750,000
plus a 35% tax rate over the excess from
AR$50,000,000. The most important
consequence for the Company is the increase
in the applicable income tax rate from 30%
to 35%. Additionally, the Company has to
pay income tax rate on dividends, which has
remained at 7%. In relation to gross income
tax (so-called “tax over gross revenues”), in
2019 there was a 0.5% average reduction
in the gross income tax rate for industrial
activity in provinces of Argentina where
Andina has no productive plants, while
the 0.5% reduction planned for 2020 was
suspended and has remained suspended
during 2021. Municipal rates in 2021 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$2.775 billion (equivalent
to approximately US$493.78 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
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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 termination of the distribution agreement
for Heineken and Amstel beers, and its
replacement by the new distribution agreement
for Eisenbahn, Tiger, Sol Premium, Kaiser and
Bavaria beers, could adversely affect our results
of operations.
On September 1, 2021, the distribution
agreement under which our subsidiary Rio
de Janeiro Refrescos Ltda commercialized
and distributed Heineken and Amstel
branded beers, among others, within
its franchise territories in Brazil, was
terminated. On the same date, our subsidiary
Rio de Janeiro Refrescos Ltda and Heineken
agreed to a new distribution agreement,
pursuant to which Rio de Janeiro Refrescos
Ltda markets and distributes Eisenbahn
and Tiger branded beers, and continues
to market and distribute Sol Premium,
Kaiser and Bavaria branded beers, within its
franchise territories in Brazil.
We cannot assure you that the results of this
new distribution agreement will match the
results of the prior distribution agreement
for Heineken and Amstel brand beers. If not,
Andina Brazil’s financial results could be
significantly negatively affected.
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 comes
from countries that use other currencies.
During 2020 and 2021, 34% and 24% of the
Company’s net sales were generated in Brazil,
19% and 24% in Argentina, and 9% and 8% in
Paraguay. 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.
Geopolitical and other challenges and
uncertainties globally could have a material
adverse effect on the global economy and our
business.
In addition to the significant
macroeconomic challenges posed by the
COVID-19 pandemic, which led to a fall
in GDP in 2020 in all of the countries
where we operate, we could be exposed
to experience negative impacts to our
businesses, financial condition and results
of operations as a result of geopolitical and
other challenges and uncertainties globally.
Currently, the world economy is facing
several exceptional challenges.
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Escalating tensions between Russia
and Ukraine and massive military
actions between Russia and Ukraine
could adversely impact macroeconomic
conditions, leading to significant
disruption, instability and volatility in
global markets, as well as higher inflation
(including by contributing to further
increases in the prices of energy, oil and
other commodities and further disrupting
supply chains) and lower or negative
growth. The EU, UK, U.S. and other
governments have imposed significant
sanctions and export controls against
Russia and Russian interests and threatened
additional sanctions and controls. The
impact of these measures, as well as
potential responses to them by Russia, is
currently unknown and, while our direct
exposure to Ukraine and Russia is limited,
they could significantly and adversely affect
our business, financial condition and results
of operations.
Geopolitical and economic risks have
also increased over the past few years as a
result of trade tensions between the United
States and China, Brexit, and the rise of
populism and tensions in South America
and Middle East. Growing tensions may
lead, among others, to a deglobalization
of the world economy, an increase in
protectionism or barriers to immigration,
a general reduction of international trade
in goods and services and a reduction in
the integration of financial markets, any of
which could materially and adversely affect
our business, financial condition and results
of operations
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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
ARGENTINA
Our business operations in Argentina
are dependent on economic conditions in
Argentina.
Our operations in Argentina represented
8.8% and 11.3% of our assets as of
December 31, 2020 and December 31,
2021, respectively, and 18.8% and 24.2%
of our net sales for 2020 and 2021,
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 in
real terms, contracted by 2.0% in 2019 and
9.9% in 2020, compared to the previous
year according to the INDEC. GDP in 2021
grew by an estimate of 10.8% according to
the INDEC (considering the variation of
the first three quarters 2021 vs 2020, the
information available at the date of this
annual report).
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;
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• 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;
• government restrictions in response 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 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. 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.
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. 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
53.8%, while the WPI increased 58.5%. In
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2020, the INDEC registered an increase in
the consumer price index (índice de precios
al consumidor or “CPI”) of 36.1%, while the
wholesale price index (índice de precios
internos al por mayor or “WPI”) increased
35.4%. In 2021, the INDEC recorded a CPI
increase of 50.9%, while WPI increased 51.3%.
During 2019, 2020 and 2021, 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 were 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.
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.
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.
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 2019, 2020 and 2021, the Argentine
peso depreciated 59%, 41% and 22%,
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
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 current
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.
In September 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
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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
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. Argentina owes US$44
billion to the IMF since the Argentine
government did not accept US$13 billion.
As a result, the rating agency Fitch rates
Argentina's credit risk at "CCC" and
Standard & Poor's at "CCC+".
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 2019, 2020 and 2021
the increase in the federally-mandated
minimum wage was 48%, 22% and 55%,
respectively, and for these same years the
market average salary increase for workers
was 48%, 38% and 48%, respectively. In
addition, the Argentine government has
arranged various measures to mitigate
the impact of inflation and exchange
rate fluctuation in wages. Due to high
levels of inflation, both public and private
sector employers continue to experience
significant pressure to further increase
salaries.
Labor relations in Argentina are governed
by specific legislation, such as Labor
Law No. 20,744 and Law No. 14,250 on
Collective Bargaining Agreements, which,
among other things, dictate how salary
and other labor negotiations are to be
conducted. In the future, the government
could take new measures requiring salary
increases or additional benefits for workers,
and the labor force and labor unions may
apply pressure in support of such measures.
Any such increase in wages or worker
benefit could result in added costs and
reduced results of operations for Argentine
companies, including us.
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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 re-established
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 March 2020, with the implementation
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program to protect consumers, expanding
the list to more than 1,300 products
covered.
Towards the end of 2020 and beginning
of 2021, the Argentine government began
to reduce the number of categories in
the Maximum Reference Prices program,
with the aim and 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
During 2022, the Precios Cuidados price-
watch program will cover more than 1,300
reference products.
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 during 2021, where some
new categories were incorporated into the
program. During 2022, it has already been
announced that the number of Coca-Cola
products in the program will increase to
include more packaging, flavors and juices,
such as Cepita and Ades, as reference
products.
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.
of the COVID-19 pandemic health
measures, through a resolution issued by
the Secretariat of Commerce 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 and their
respective products suppliers throughout
the country). Price increases for the
products involved in the new program
were subsequently authorized in July and
October. In line with price control policies,
in March 2021 the Secretariat of Commerce
created a new reporting regime known as
the "System for the Implementation of
Economic Reactivation Policies" (SIPRE
for its acronym in Spanish) to prevent
arbitrary price increases and product
shortages. The SIPRE requires large
commercial and industrial companies,
including beverage manufacturers, to report
on a monthly basis the price, production
and sales, and inventory stocks of their
products. The obligation to report to
SIPRE will remain in force for the duration
of the emergency declared by Law No.
27,541 (at least until December 31, 2022).
Likewise, the Secretariat of Commerce
announced, during April 2021, the creation
of the Monitoring Center for the Price
and Availability of Inputs, Goods and
Services, with the purpose of monitoring,
surveying and systematizing the prices
and availability of all inputs, goods and
services that are produced, traded and
rendered in Argentina. The extension and
validity of this program will depend on the
Argentine government's policy based on the
evolution of the health crisis and inflation.
As of the date of this annual report, the
Precios Cuidados price-watch program
is expected to be extended through 2022
with a quarterly review of prices, since the
Secretariat of Commerce decided to extend,
once again, the validity and duration of this
RISKS RELATING TO
BRAZIL
Our business operations in Brazil are
dependent on economic conditions in Brazil.
Our operations in Brazil represented 32.4%
and 30.7% of our assets as of December
31, 2020 and 2021, respectively, and
34.2% and 24.3% of our net sales for 2020
and 2021, respectively. Because demand
for soft drinks and beverage products is
usually correlated to economic conditions
prevailing in the relevant local market,
developments in economic conditions in
Brazil, and measures taken by the Brazilian
government, have had and are expected
to continue to have an impact on our
business, results of operations and financial
condition.
The Brazilian economy has historically
been characterized by unstable economic
cycles and interventions by the Brazilian
government. Brazilian GDP grew by 1.4%
in 2019, contracted by 4.1% in 2020 and
grew by 4.57% in 2021 according to the
Brazilian Institute of Geography and
Statistics (Instituto Brasileiro de Geografia
e Estatistica). The Brazilian government
has often changed monetary, taxation and
other policies to influence the course of
Brazil’s economy. Our business, results of
operations and financial condition may be
adversely affected by, among others, the
following factors:
• expansion or contraction of the Brazilian
economy;
• exchange rate fluctuations;
• high inflation rates;
• changes in fiscal or tax policies;
• changes in monetary policy, including an
increase in interest rates;
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• 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;
• government restrictions in response to the
COVID-19 pandemic and the capacity of
authorities to keep the pandemic under
control;
• social and political instability;
• uncertainty related to the 2022 Brazilian
presidential election; 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 crises have affected
and continue to affect the confidence of
investors and the general public, which
have historically resulted in economic
deceleration.
Jair Bolsonaro was elected as the President
of Brazil in October 2018. 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
10INFORMATION EXHIBITS132567894
and interest rates, adversely affecting our
business, financial condition and results
of operations. It is also expected that
during 2022, Brazil will experience greater
economic volatility as a result of the
presidential elections which are scheduled
to take place in the second half of the year.
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.
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, or “IBGE”), Brazilian annual
rates of inflation for consumer prices were
4.3% in 2019, 4.5% in 2020 and 10.1% in
2021.
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
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 depreciated
4%, 29% and 7% during 2019, 2020 and
2021, respectively, compared to the closing
exchange rate as of the end of the prior
period for the U.S. dollar in nominal terms.
A significant part of the raw materials we
use in Brazil are priced in U.S. dollars, so
a depreciation of the Brazilian real against
the U.S. dollar has a significant adverse
effect in our costs and margins.
Any depreciation of the real against
the U.S. dollar could create additional
inflationary pressure, which might result
in the Brazilian government adopting
restrictive policies to combat inflation. This
could lead to increases in interest rates,
which might negatively affect the Brazilian
economy as a whole, as well as our results
of operations, in addition to restricting our
access to international financial markets.
It also reduces the U.S. dollar value of
our revenues. On the other hand, future
appreciation of the real against the U.S.
dollar might result in the deterioration of
Brazil’s current and capital accounts, as well
as a weakening of Brazilian GDP growth
derived from exports. We cannot assure
you that the real will not again fluctuate
significantly against the U.S. dollar in the
future and, as a result, have an adverse
effect on our business, results of operations
and financial condition.
Changes in tax laws may increase our tax
burden and reduce tax incentives and, as a
result, negatively affect our profitability.
The Brazilian government regularly
implements changes to tax regimes that
may increase our and our customers’
tax burdens. These changes include
modifications in the tax rates and, on
occasion, enactment of temporary taxes,
the proceeds of which are earmarked for
designated governmental purposes. In
the past, the Brazilian government has
presented certain tax reform proposals,
which have been mainly designed to
simplify the Brazilian tax system, to avoid
internal disputes within and between the
Brazilian states and municipalities, and to
redistribute tax revenues. The tax reform
proposals provide for changes in the rules
governing the federal Social Integration
Program (Programa de Integração Social,
or “PIS”) and Social Security Contribution
(Contribuição para o Financiamento da
Seguridade Social, or “COFINS”) taxes,
the state Tax on the Circulation of Goods
and Services (Imposto Sobre a Circulação
de Mercadorias e Serviços, or “ICMS”)
and some other taxes, such as increases in
payroll taxes. These proposals may not be
approved and passed into law. The effects
of these proposed tax reform measures
and any other changes that result from
enactment of additional tax reforms
have not been, and cannot be, quantified.
However, some of these measures, if
enacted, may result in increases in our
overall tax burden, which could negatively
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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 to
February 2022; and
(10) 6% IPI rate from February 2022
onwards.
Any further reductions of the IPI may
adversely affect our financial condition and
results of operations.
10INFORMATION EXHIBITS132567894
RISKS RELATING TO
CHILE
Our growth and profitability depend
significantly on economic conditions in Chile.
Our operations in Chile represented 47.8%
and 46.3% of our assets as of December 31,
2020 and December 31, 2021, respectively,
and 38.0% and 44.0% of our net sales for
2020 and 2021, 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 1.1% in 2019, in 2020 it contracted by
5.8% and in 2021 it grew at a rate of 11.7%,
reflecting higher spending especially in
private consumption and investments in
machinery and equipment. According to
the Central Bank, for 2022 and 2023, the
economy is projected to grow between
1.5% and 2.5%, and between 0.0% and
1.0%, respectively, showing a significant
slowing of growth with respect to previous
periods mainly due to a decrease in
consumption levels driven by the end of
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massive programs of fiscal transfers to
households. Thus, private consumption is
expected to fall 0.2% in 2022 and 1.5% in
2023. 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;
• energy or water shortages or
rationalization;
• the Chilean constitutional process, and
the impact of a new Chilean Constitution,
if approved;
• government restrictions in response to
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.
Currently, Chile is in a period of
uncertainty generated by political,
economic and health factors. 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. While to date the riots and
protests described above have decreased
in intensity and frequency, they are not
completely over.
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. On
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 July 2022 for its approval
or rejection by absolute majority vote.
This convention will be responsible for
proposing a new political and economic
system, establishing social rights and
defining political and participation and
governing methods in the country, among
other proposals.
We cannot predict the extent to which
the economy of Chile will be affected
by the political discussion regarding the
new constitution, nor can we predict if
government policies will have a negative
impact on the Chilean economy. Changes
in government policies may include higher
tax rates and other changes in laws and
policies that could result in a less favorable
environment for private businesses.
Thus, the long-term effects of the new
constitution are hard to predict, but could
include slower economic growth and higher
taxes, which could adversely affect our
business, financial condition and results of
operation.
Political developments in Chile could result in
instability.
In December 2021, Chile elected a new
President, Mr. Gabriel Boric, who took
office on March 11, 2022. This will be
the first time that a representative of the
Apruebo Dignidad coalition (made up of
several political parties from Chilean center
and left wing) assumes the executive power,
through the appointment of his cabinet
members, the coalition has enlarged to
include the Socialist party, and the Partido
por la Democracia, former members of
the Concertación coalition, who had won
5 elections for president between 1989
and 2014. In addition, a new Congress
was elected in November 2021, resulting
in the Chamber of Deputies having a 44%
representation from right-wing candidates,
5% independents, and the remaining 51%
from center and left-wing candidates
(24% of total deputies belong to Apruebo
Dignidad). In the case of the Senate, 50%
will be represented by right-wing politics,
and 50% from left-wing parties (10% of
the Senate will belong to the next ruling
collation).
In this context, Chile has more
balanced Congress in terms of political
representation, and as a result the
probability of having extreme reforms
seems more limited. However, we cannot
assure you that measures taken by the
new government impacting private
investment, such as higher taxation, will
not be implemented, and we cannot
assure you whether the newly-elected
Chilean government will continue to
pursue business-friendly and open-market
economic policies that stimulate economic
10INFORMATION EXHIBITS132567894
growth and stability. Further, there can be
no assurance that future developments in
or affecting the Chilean political landscape,
including economic, social or political
instability in Chile, will not materially
and adversely affect our business, financial
condition or results of operations.
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
depreciated by 8% during 2019, appreciated
by 5% in 2020 and in 2021 the Chilean peso
depreciates 19%, compared to the previous
year's closing exchange rate of the U.S.
dollar in nominal terms.
A significant part of the raw materials
used by the Company are in U.S. dollars,
therefore a devaluation of the Chilean peso
against the U.S. dollar can affect our costs
and margins in a significant way.
In addition, as we report our results of
operations in Chilean pesos, fluctuations
in the value of the Chilean peso versus the
Brazilian real, the Argentine peso and the
Paraguayan guaraní could also impact our
reported performance in Chilean pesos.
Inflation in Chile and government measures
to curb inflation may disrupt our business
and have an adverse effect on our financial
condition and results of operations.
Although Chilean inflation has remained
relatively stable in recent years, Chile has
experienced significant levels of inflation
in the past. The rates of inflation in Chile,
which in 2019, 2020 and 2021 were 3.0%,
3.0% and 7.2%, respectively. As part of
the COVID-19 economic and financial
aid package promulgated by the Chilean
Congress, since July 30, 2020, three laws
(Law No. 21,248; Law No. 21,295; and Law
No. 21, 330) have been passed to allow
affiliates of the private pension system
governed by Decree Law No. 3,500, to
withdraw funds (up to 10% each time,
subject to certain limitations) from
their personal pension funds accounts.
These withdrawals have had an effect
on the increase in consumption and as a
consequence the inflation in the country
increase 7.2% in 2021 and is projected that
this index would remain at similar levels
during 2022. As a measure to control
inflation, the Central Bank made recurrent
increases in the Monetary Policy Rate
ranging from 0.5% to 4% during 2021,
aiming to achieve a significant decrease
in spending and investments is expected,
especially in areas such as housing
construction due to the significant increase
in mortgage rates.
The measures taken by the Central Bank
in the past to control inflation have often
included maintaining a conservative
monetary policy with high interest rates,
thereby restricting the availability of credit
and economic growth. Inflation, measures
to combat inflation, and public speculation
about possible additional actions by the
government have also contributed in the
past to economic uncertainty in Chile and
to heightened volatility in its securities
markets. Periods of higher inflation may
also slow the growth rate of the Chilean
economy, which could lead to reduced
demand for our products and decreased
sales. Inflation is also likely to increase
some of our costs and expenses, given that
the majority of our supply contracts in
Chile are UF-denominated or are indexed
to the Chilean consumer price index. We
cannot assure you that, under competitive
pressure, we will be able to carry out price
increases, which could adversely impact our
operating margins and operating income.
Additionally, an important part of our
financial debt in Chile is UF-denominated,
and therefore the value of the debt reflects
any increase of the inflation in Chile.
A severe earthquake or tsunami in Chile could
adversely affect the Chilean economy and our
network infrastructure.
Chile lies on the Nazca tectonic plate,
one of the world’s most seismically active
regions. Chile has been adversely affected
by powerful earthquakes in the past,
including an 8.0 magnitude earthquake
that struck Santiago in 1985 and a 9.5
magnitude earthquake in 1960 which is the
largest earthquake ever recorded.
In February 2010, an 8.8 magnitude
earthquake struck the central and
south-central regions of Chile. The
quake epicenter was located 200 miles
southwest of Santiago and 70 miles north
of Concepción, Chile’s second largest
city. The regions of Bío Bío and Maule
were the most severely affected regions,
especially the coastal area, which, shortly
after the earthquake, was hit by a tsunami
that significantly damaged cities and port
facilities. The Valparaíso and Metropolitan
regions were also severely affected. At least
1.5 million homes were damaged, and more
than 500 people were killed. As a result
of these developments, economic activity
in Chile was adversely affected in March
2010. Legislation was passed to raise the
corporate income tax rate in order to pay
for reconstruction following the earthquake
and tsunami, which had an adverse effect
on our results.
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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RISKS RELATING TO
PARAGUAY
Our business operations in Paraguay are
dependent on economic conditions in Paraguay.
Our operations in Paraguay represented
11.1% and 11.7% of our assets as of December
31, 2020 and December 31, 2021, respectively,
and 9.3% and 7.6% of our net sales for 2020
and 2021, 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 stability, exchange controls,
frequent changes in regulatory policies,
corruption and weak judicial security.
Paraguayan GDP did not grow in 2019,
contracted 1% in 2020 and grew in 2021
by an estimate of 5%, 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.
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Inflation in Paraguay may adversely affect our
financial condition and results of operations.
Although inflation in Paraguay has
remained stable at around 3.9% 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 (30%) in Paraguay for raw
material and supplies are denominated in
U.S. dollars, a significant depreciation of
the local currency could adversely affect
our financial situation and results.
The Paraguayan guaraní depreciated by 8%
and 7% in 2019, and 2020, respectively and
in 2021 it appreciated 0.2%, 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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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 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$152,102 million as of December 31,
2021 and an average monthly trading
volume of approximately US$3,728
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.
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SUMMARIZED FINANCIAL STATEMENTS - SUBSIDIARIES
Embotelladora Andina Chile S.A.
Ended December 31, 2021 and 2020
VJ S.A.
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
2021
2020
2021
2020
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
Reserves
Accumulated earnings
Total Equity
INCOME STATEMENT
Operating income
Non-operating income
Income (loss) before taxes
Income tax expense
Profit (loss)
CASH FLOW STATEMENT
Operating cash flow
Investment cash flow
Financing cash flow
Assets
2,647,976
21,633
Current assets
50,798,864
48,887,195
Non-current assets
53,446,840
48,908,828
Total assets
Liabilities
389,231
6,035,042
Current liabilities
6,191,508
840,892
Non-current liabilities
6,580,739
6,875,934
Total Liabilities
36,569,067
36,569,067
Equity
Capital
0
0
Reserves
10,297,034
5,463,827
Accumulated earnings
46,866,101
42,032,894
Total Equity
INCOME STATEMENT
5,672,181
4,887,611
Operating income
-36,621
-82,967
Non-operating income
5,635,560
4,804,644
Income (loss) before taxes
-802,353
-1,048,728
Income tax expense
4,833,207
3,755,916
Profit (loss)
CASH FLOW STATEMENT
8,376,112
8,103,394
-2,503,250
0
-5,873,000
-8,115,741
Operating cash flow
Investment cash flow
Financing cash flow
25,441,585
21,175,722
16,832,859
14,306,662
42,274,444
35,482,384
17,498,997
11,812,384
1,756,730
307,146
19,255,727
12,119,530
20,675,167
20,675,167
544,594
586,841
1,798,956
2,100,846
23,018,717
23,362,854
1,683,171
844,843
-245,534
43,541
1,437,637
888,384
-9,287
1,428,350
-73,331
815,053
2,674,624
1,811,111
-2,020,683
-445,299
-1,550,477
-470
Effects of exchange rate variation on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Balance cash and cash equivalents
0
1,901
1,763
0
14,248
1,901
Effects of exchange rate variation on cash and cash equivalents
68,859
65,709
Cash and cash equivalents at the beginning of the period
5,813,036
4,381,985
Balance cash and cash equivalents
4,985,359
5,813,036
10INFORMATION EXHIBITS132567894
Vital Aguas S.A.
Ended December 31, 2021 and 2020
Envases Central S.A.
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
2021
2020
2021
2020
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
Reserves
Accumulated earnings
Total Equity
INCOME STATEMENT
Operating income
Non-operating income
Income (loss) before taxes
Income tax expense
Profit (loss)
Assets
5,575,990
3,798,228
Current assets
5,789,335
7,297,306
Non-current assets
11,365,325
11,095,534
Total assets
Liabilities
4,934,841
3,897,100
Current liabilities
335,449
1,490,904
Non-current liabilities
5,270,290
5,388,004
Total Liabilities
4,331,154
4,331,154
Equity
Capital
30,463
13,402
Reserves
1,733,418
1,362,974
Accumulated earnings
6,095,035
5,707,530
Total Equity
INCOME STATEMENT
544,973
-122,583
631,018
Operating income
-248,419
Non-operating income
422,390
382,599
Income (loss) before taxes
-32,771
389,619
-56,899
325,700
Income tax expense
Profit (loss)
CASH FLOW STATEMENT
CASH FLOW STATEMENT
Operating cash flow
Investment cash flow
Financing cash flow
Effects of exchange rate variation on cash and cash equivalents
1,226
8,231
1,700,006
82,766
Operating cash flow
-261,383
-133,349
Investment cash flow
2,993
Financing cash flow
Cash and cash equivalents at the beginning of the period
666,969
725,578
Cash and cash equivalents at the beginning of the period
5,246,680
1,277,677
Balance cash and cash equivalents
2,115,049
666,969
Balance cash and cash equivalents
3,624,057
5,246,680
-11,019
Effects of exchange rate variation on cash and cash equivalents
22,810
-121,731
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17,976,169
15,600,566
20,945,892
18,205,899
38,922,061
33,806,465
20,091,524
13,908,411
4,742,707
7,064,568
24,834,231
20,972,979
7,562,354
7,562,354
562,678
597,641
5,962,798
4,673,491
14,087,830
12,833,486
2,155,529
1,915,397
-140,814
-2,313,218
2,014,715
-397,821
-172,848
1,841,867
223,508
-174,313
2,824,769
2,108,904
-3,681,135
-1,242,486
-789,067
3,224,316
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Transportes Andina Refrescos Ltda.
Ended December 31, 2021 and 2020
Servicios Multivending Ltda.
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
2021
2020
2021
2020
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
Reserves
Accumulated earnings
Total Equity
INCOME STATEMENT
Operating income
Non-operating income
Income (loss) before taxes
Income tax expense
Profit (loss)
Assets
13,330,925
9,484,615
Current assets
27,122,523
20,698,083
Non-current assets
40,453,448
30,182,698
Total assets
Liabilities
14,611,578
11,972,106
Current liabilities
9,075,160
3,818,881
Non-current liabilities
23,686,738
15,790,987
Total Liabilities
12,639,173
12,620,628
Equity
Capital
-892,646
-729,027
Reserves
5,020,183
2,500,110
Accumulated earnings
16,766,710
14,391,711
Total Equity
INCOME STATEMENT
6,972,054
5,573,011
Operating income
-96,193
-104,498
Non-operating income
6,875,861
5,468,513
Income (loss) before taxes
-1,281,902
-1,339,347
Income tax expense
5,593,959
4,129,166
Profit (loss)
CASH FLOW STATEMENT
CASH FLOW STATEMENT
Operating cash flow
Investment cash flow
Financing cash flow
15,871,543
8,738,377
Operating cash flow
-12,236,325
-7,215,925
Investment cash flow
-3,687,854
-1,594,728
Financing cash flow
1,550,430
1,613,188
475,547
442,572
2,025,977
2,055,760
737,182
27,361
925,317
17,803
764,543
943,120
862,248
862,248
5,019
2,401
394,167
247,991
1,261,434
1,112,640
92,770
87,910
180,680
-34,504
146,176
825,178
-239,255
-638,619
93,648
-671
92,977
-18,449
74,528
-16,548
0
-3,650
Effects of exchange rate variation on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Balance cash and cash equivalents
0
55,381
2,745
0
Effects of exchange rate variation on cash and cash equivalents
7,545
0
127,657
55,381
Cash and cash equivalents at the beginning of the period
Balance cash and cash equivalents
176,960
131,809
197,158
176,960
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Andina Bottling Investments S.A.
Ended December 31, 2021 and 2020
Andina Bottling Investments Dos S.A.
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
2021
2020
2021
2020
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
Reserves
Accumulated earnings
Total Equity
INCOME STATEMENT
Operating income
Non-operating income
Income (loss) before taxes
Income tax expense
Profit (loss)
Assets
1,918
32,742
Current assets
858,180,089
711,740,237
Non-current assets
858,182,007
711,772,979
Total assets
Liabilities
103,097
285,237
Current liabilities
0
0
Non-current liabilities
103,097
285,237
Total Liabilities
311,727,582
311,727,582
Equity
Capital
52,203,333
-3,538,664
Reserves
494,147,995
403,298,824
Accumulated earnings
858,078,910
711,487,742
Total Equity
INCOME STATEMENT
-416,093
-421,080
Operating income
73,125,715
49,065,434
Non-operating income
72,709,622
48,644,354
Income (loss) before taxes
-3,673,569
-2,337,293
Income tax expense
69,036,053
46,307,061
Profit (loss)
413,440,080
356,342,350
607,262,357
233,162,735
1,020,702,437
589,505,085
0
0
0
13,019,372
-257,292
12,762,080
466,474,897
453,356,984
-167,976,870
-199,395,991
722,204,410
322,782,012
1,020,702,437
576,743,005
-413,356
-364,715
122,886,259
54,951,687
122,472,903
54,586,972
795,753
-4,649,849
123,268,656
49,937,123
CASH FLOW STATEMENT
CASH FLOW STATEMENT
Operating cash flow
Investment cash flow
Financing cash flow
186,135
19,088,496
Operating cash flow
-12,694,814
41,103,011
0
217,785
Investment cash flow
-289
-19,139,301
Financing cash flow
3,774
4,418
-5,753
-28,647,371
Effects of exchange rate variation on cash and cash equivalents
-186,524
-208,159
Effects of exchange rate variation on cash and cash equivalents
738,134
-722,659
Cash and cash equivalents at the beginning of the period
Balance cash and cash equivalents
2,596
1,918
43,775
2,596
Cash and cash equivalents at the beginning of the period
11,954,411
227,183
Balance cash and cash equivalents
5,923
11,954,411
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Andina Inversiones Societarias S.A.
Ended December 31, 2021 and 2020
Rio de Janeiro Refrescos Ltda.
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
2021
2020
2021
2020
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
Reserves
Accumulated earnings
Total Equity
INCOME STATEMENT
Operating income
Non-operating income
Income (loss) before taxes
Income tax expense
Profit (loss)
Assets
1,075,062
846,849
Current assets
34,324,942
32,899,356
Non-current assets
35,400,004
33,746,205
Total assets
8,603
0
8,603
3,657
75
3,732
30,082,325
30,082,325
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
63,613
224,832
Reserves
5,245,463
3,435,316
Accumulated earnings
35,391,401
33,742,473
Total Equity
INCOME STATEMENT
-2,481
6,586
Operating income
3,387,724
2,884,111
Non-operating income
3,385,243
2,890,697
Income (loss) before taxes
-6,620
-1,634
Income tax expense
3,378,623
2,889,063
Profit (loss)
CASH FLOW STATEMENT
CASH FLOW STATEMENT
Operating cash flow
Investment cash flow
Financing cash flow
Effects of exchange rate variation on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Balance cash and cash equivalents
0
-312
2,623
16,771
34,362
15,280
-13,426
Operating cash flow
1,901
12,354
Investment cash flow
Financing cash flow
-946
Effects of exchange rate variation on cash and cash equivalents
5,953,760
-12,551,282
16,888
16,771
Cash and cash equivalents at the beginning of the period
49,528,425
46,189,979
Balance cash and cash equivalents
56,272,827
49,528,426
0
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183,268,173
149,709,603
720,101,807
643,447,810
903,369,980
793,157,413
109,691,047
96,144,933
534,386,761
465,225,176
644,077,808
561,370,109
119,168,159
119,168,159
-40,234,915
-84,787,811
180,358,928
197,406,956
259,292,172
231,787,304
72,479,337
92,159,855
-26,958,643
-18,991,896
45,520,694
73,167,959
82,395
-20,536,914
45,603,089
52,631,045
37,895,024
36,409,227
-34,649,309
-17,075,672
-2,455,073
-3,443,826
10INFORMATION EXHIBITS132567894
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Embotelladora del Atlántico S.A.
Ended December 31, 2021 and 2020
Andina Empaques Argentina S.A.
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
2021
2020
2021
2020
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
Reserves
Accumulated earnings
Total Equity
INCOME STATEMENT
Operating income
Non-operating income
Income (loss) before taxes
Income tax expense
Profit (loss)
Assets
107,589,399
65,077,621
Current assets
209,051,488
140,891,069
Non-current assets
316,640,887
205,968,690
Total assets
Liabilities
98,942,717
56,982,545
Current liabilities
19,520,634
10,226,241
Non-current liabilities
118,463,351
67,208,786
Total Liabilities
3,782,900
3,782,900
Equity
Capital
53,105,129
-4,846,495
Reserves
141,289,507
139,823,499
Accumulated earnings
198,177,536
138,759,904
Total Equity
INCOME STATEMENT
47,813,070
25,012,283
Operating income
-3,651,915
-4,669,186
Non-operating income
44,161,155
20,343,097
Income (loss) before taxes
-23,853,446
-6,957,000
Income tax expense
20,307,709
13,386,097
Profit (loss)
CASH FLOW STATEMENT
CASH FLOW STATEMENT
Operating cash flow
Investment cash flow
Financing cash flow
51,823,184
22,481,299
Operating cash flow
-31,849,249
-15,225,051
Investment cash flow
-940,318
-167,606
Financing cash flow
13,197,912
6,212,726
11,865,985
8,247,288
25,063,897
14,460,014
6,210,788
2,733,092
868,253
491,364
7,079,041
3,224,456
2,472,553
2,472,553
-1,092,675
-6,283,498
16,604,978
15,046,503
17,984,856
11,235,558
5,969,309
2,816,420
-2,566,721
-936,854
3,402,588
1,879,566
-1,844,112
-711,059
1,558,476
1,168,507
3,666,739
2,121,824
-1,939,986
-785,899
0
0
Effects of exchange rate variation on cash and cash equivalents
-13,058,031
-5,313,505
Effects of exchange rate variation on cash and cash equivalents
-44,994
-88,242
Cash and cash equivalents at the beginning of the period
13,408,331
11,633,194
Cash and cash equivalents at the beginning of the period
1,531,309
283,626
Balance cash and cash equivalents
19,383,917
13,408,331
Balance cash and cash equivalents
3,213,068
1,531,309
10INFORMATION EXHIBITS132567894
Transportes Polar S.A.
Ended December 31, 2021 and 2020
Reciclar
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
2021
2020
2021
2020
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
Reserves
Accumulated earnings
Total Equity
INCOME STATEMENT
Operating income
Non-operating income
Income (loss) before taxes
Income tax expense
Profit (loss)
Assets
4,425,632
1,645,659
Current assets
7,536,009
7,388,970
Non-current assets
11,961,641
9,034,629
Total assets
Liabilities
5,506,848
4,022,700
Current liabilities
1,735,304
1,765,670
Non-current liabilities
7,242,152
5,788,370
Total Liabilities
1,619,315
1,619,315
Equity
Capital
4,068,596
4,386,487
Reserves
-968,422
-2,759,543
Accumulated earnings
4,719,489
3,246,259
Total Equity
INCOME STATEMENT
2,062,401
1,520,922
Operating income
-13,236
-188,600
Non-operating income
2,049,165
1,332,322
Income (loss) before taxes
-542,589
-356,487
Income tax expense
1,506,576
975,835
Profit (loss)
CASH FLOW STATEMENT
CASH FLOW STATEMENT
Operating cash flow
Investment cash flow
Financing cash flow
8,528
1,535,978
Operating cash flow
-106,631
-327,741
Investment cash flow
97,466
-1,243,517
Financing cash flow
Effects of exchange rate variation on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Balance cash and cash equivalents
0
1,193
556
36,473
1,193
0
Effects of exchange rate variation on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Balance cash and cash equivalents
1,414,858
2
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0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4,135,678
3,560,269
7,695,947
35,752
0
35,752
7,500,000
0
160,195
7,660,195
-4,200
164,395
160,195
0
160,195
16,854
-6,101,996
7,500,000
0
0
10INFORMATION EXHIBITS132567894
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Paraguay Refrescos S.A.
Ended December 31, 2021 and 2020
STATEMENT OF FINANCIAL POSITION
CLP (000's)
CLP (000's)
2021
2020
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Capital
Reserves
Accumulated earnings
Total Equity
INCOME STATEMENT
Operating income
Non-operating income
Income (loss) before taxes
Income tax expense
Profit (loss)
CASH FLOW STATEMENT
Operating cash flow
Investment cash flow
Financing cash flow
64,121,536
44,658,550
279,148,198
226,241,150
343,269,734
270,899,700
34,207,817
24,337,015
17,242,154
14,399,594
51,449,971
38,736,609
9,904,604
9,904,604
171,446,744
127,387,999
110,468,415
94,870,488
291,819,763
232,163,091
44,766,041
39,632,980
828,296
492,823
45,594,337
40,125,803
-4,805,536
-3,643,231
40,788,801
36,482,572
30,973,259
25,845,053
-22,513,317
-11,882,036
-390,735
-429,077
Effects of exchange rate variation on cash and cash equivalents
5,855,701
-3,742,282
Cash and cash equivalents at the beginning of the period
22,907,058
13,115,400
Balance cash and cash equivalents
36,831,966
22,907,058
10INFORMATION EXHIBITS132567894
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 2021Date 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 x 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 x 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 x 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 1934 Yes ¨ No x EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Financial Statements at December 31, 2021 and 2020 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, 2021 and 2020, and the related consolidated statements of comprehensive income, changes inshareholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial ReportingStandards; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financialstatements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditingstandards generally accepted in Chile. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidatedfinancial 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, whether due tofraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidatedfinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financialstatements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion on the Regulatory Basis of Accounting In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Embotelladora Andina S.A.and subsidiaries as of December 31, 2021 and 2020, and the results of their operations and their cash flows for the years then ended in accordance with InternationalFinancial Reporting Standards. Tatiana Ramos S.EY Audit SpA Santiago February 22, 2022 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Financial Statements I. Consolidated Statements of Financial Position as of December 31, 2021 and 20201II. Consolidated Statements of Income by Function for the fiscal years ended December 31, 2021 and 20203III. Consolidated Statements of Comprehensive Income for the fiscal years ended December 31, 2021 and 20204IV. Consolidated Statements of Changes in Equity for the fiscal years ended December 31, 2021 and 20205V. Consolidated Statements of Direct Cash Flows for the fiscal years ended December 31, 2021 and 20206VI. Notes to the Consolidated Financial Statements7 1 – Corporate Information72 – Basis of preparation of consolidated Financial Statements and application of accounting criteria83 – Financial Reporting by Segment284 – Cash and cash equivalents315 – Other current and non-current financial assets316 – Other current and non-current non-financial assets327 – Trade accounts and other accounts receivable338 – Inventories349 – Tax assets and liabilities3410 – Income tax epense and deferred taxes3511 – Property, plant and equipment3812 – Related parties4113 – Current and non-current employee benefits4314 – Investments in associates accounted for using the equity method4415 – Intangible assests other than goodwill4916 – Goodwill5017 – Other current and non-current financial liabilities5018 – Trade and other accounts payable6219 – Other provisions, current and non-current6220 – Other non-financial liabilities6321 – Equity6322 – Derivatives assets and liabilities6623 – Litigations and contingencies6924 – Financial risk management7325 – Expenses by nature7826 – Other income7827 – Other expenses by function7828 – Financial income and costs7929 – Other (losses) gains7930 – Local and foreign currency8031 – Environment (non-audited)8432 – Subsequent events84 Consolidated Financial Statements EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES December 31, 2021 and 2020 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Financial Positionas of December 31, 2021 and 2020 NOTE 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) ASSETS Current assets: Cash and cash equivalents 4 304,312,020 309,530,699 Other financial assets 5 195,470,749 140,304,853 Other non-financial assets 6 14,719,104 13,374,381 Trade and other accounts receivable, net 7 265,490,626 194,021,253 Accounts receivable from related companies 12.1 9,419,050 11,875,408 Inventory 8 191,350,206 127,972,650 Current tax assets 9 10,224,368 218,472 Total Current Assets 990,986,123 797,297,716 Non-Current Assets: Other financial assets 5 296,632,012 162,013,278 Other non-financial assets 6 70,861,616 90,242,672 Trade and other receivables 7 126,464 73,862 Accounts receivable from related parties 12.1 98,941 138,346 Investments accounted for under the equity method 14 91,489,194 87,956,354 Intangible assets other than goodwill 15 659,631,543 604,514,165 Goodwill 16 118,042,900 98,325,593 Property, plant and equipment 11 716,379,127 605,576,545 Deferred tax assets 10.2 1,858,727 1,925,869 Total Non-Current Assets 1,955,120,524 1,650,766,684 Total Assets 2,946,106,647 2,448,064,400 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements 1 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Financial Positionas of December 31, 2021 and 2020 NOTE 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) LIABILITIES AND EQUITY LIABILITIES Current Liabilities Other financial liabilities 17 47,763,039 38,566,724 Trade and other accounts payable 18 327,409,207 230,445,809 Accounts payable to related parties 12.2 56,103,461 39,541,968 Other provisions 19 1,528,879 1,335,337 Tax liabilities 9 30,512,787 8,828,599 Employee benefits current provisions 13 35,012,072 31,071,019 Other non-financial liabilities 20 31,237,834 28,266,730 Total Current Liabilities 529,567,279 378,056,186 Other financial liabilities 17 1,041,048,972 989,829,569 Accounts payable 18 256,273 295,279 Accounts payable to related companies 12.2 11,557,723 10,790,089 Other provisions 19 55,883,527 48,734,936 Deferred tax liabilities 10.2 168,454,827 153,669,547 Employee benefits non-current provisions 13 14,139,670 13,635,558 Other non-financial liabilities 20 23,784,817 21,472,048 Tax liabilities 9 - 20,597 Total Non-current liabilities 1,315,125,809 1,238,447,623 EQUITY 21 Issued capital 270,737,574 270,737,574 Retained earnings 768,116,920 654,171,126 Other reserves 37,289,310 (113,727,586)Equity attributable to equity holders of the parent 1,076,143,804 811,181,114 Non-controlling interests 25,269,755 20,379,477 Total Equity 1,101,413,559 831,560,591 Total Liabilities and Equity 2,946,106,647 2,448,064,400 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements. 2 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Income by FunctionFor the fiscal years ended December 31, 2021 and 2020 01.01.2021 01.01.2020 NOTE 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Net sales 2,216,732,593 1,698,281,237 Cost of sales 8 (1,375,392,773) (1,022,498,659)Gross Profit 841,339,820 675,782,578 Other income 26 1,337,878 8,356,298 Distribution expenses 25 (199,952,373) (152,532,018)Administrative expenses 25 (348,949,863) (283,638,935)Other expenses 27 (15,211,790) (17,430,256)Other (loss) gains 29 - 287 Financial income 28 7,791,869 14,945,879 Financial expenses 28 (52,992,456) (54,772,837)Share of profit (loss) of investments in associates accounted for using the equity method 14.3 3,093,102 2,228,763 Foreign exchange differences (5,508,311) (3,088,278)Income by indexation units (27,738,888) (11,828,762)Net income before income taxes 203,208,988 178,022,719 Income tax expense 10.1 (46,177,320) (54,905,399)Net income 157,031,668 123,117,320 Net income attributable to Owners of the controller 154,698,150 121,999,805 Non-controlling interests 2,333,518 1,117,515 Net income 157,031,668 123,117,320 Earnings per Share, basic and diluted in ongoing operations CLP CLP Earnings per Series A Share 21.5 155.65 122.75 Earnings per Series B Share 21.5 171.21 135.02 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements 3 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Comprehensive IncomeFor the fiscal years ended December 31, 2021 and 2020 01.01.2021 01.01.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Net Income 157,031,668 123,117,320 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 (357,840) (3,146,362)Components of other comprehensive income that will be reclassified to net income for the period, before taxes Gain (losses) from exchange rate translation differences 98,973,862 (264,119,093)Gain (losses) from cash flow hedges 104,232,055 (12,203,755)Income tax related to components of other comprehensive income that will not be reclassified to net income for theperiod Income tax benefit related to defined benefit plans 96,617 849,518 Income tax related to components of other comprehensive income that will be reclassified to net income for theperiod Income tax related to exchange rate translation differences (22,103,267) 84,571,922 Income tax related to cash flow hedges (28,944,992) 2,334,037 Other comprehensive income, total 151,896,435 (191,713,733)Total comprehensive income 308,928,103 (68,596,413)Total comprehensive income attributable to: Equity holders of the controller 305,715,046 (68,721,632)Non-controlling interests 3,213,057 125,219 Total comprehensive income 308,928,103 (68,596,413) The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements. 4 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Changes in EquityFor the fiscal years ended December 31, 2021 and 2020 Other reserves IssuedCapital Reserves forexchange ratedifferences Cash Flowhedgereserve Actuarialgains orlosses inemployeebenefits Otherreserves Total otherreserves Retainedearnings Controllingequity Non-controllinginterests 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 01.01.2021 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 Changes in equity Comprehensive income Earnings - - - - - - 154,698,150 154,698,150 2,333,518 157.031.668 Other comprehensive income - 75,916,398 75,323,231 (222,733) - 151,016,896 - 151,016,896 879,539 151.896.435 Comprehensive income - 75,916,398 75,323,231 (222,733) - 151,016,896 154,698,150 305,715,046 3,213,057 308.928.103 Dividends - - - - - - (109,328,860) (109,328,860) (1,386,857) (110,715,717)Increase (decrease) from other changes * - - - - - - 68,576,504 68,576,504 3,064,078 71,640,582 Total changes in equity - 75,916,398 75,323,231 (222,733) 151,016,896 113,945,794 264,962,690 4,890,278 269,852,968 Ending balance as of 12.31.2021 270,737,574 (441,580,088) 50,603,698 (4,885,926) 433,151,626 37,289,310 768,116,920 1,076,143,804 25,269,755 1,101,413,559 Other reserves IssuedCapital Reserves forexchangeratedifferences Cash Flowhedgereserve Actuarialgains orlosses inemployeebenefits Otherreserves Total otherreserves Retainedearnings Controllingequity Non-controllinginterests 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 other changes * - - - - - - 34,618,524 34,618,524 - 34,618,524 Total 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 31.12.2020 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 *Corresponds mainly to inflation effects on the equity of our Subsidiaries in Argentina (see Note 2.5.1) The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements. 5 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Direct Cash FlowsFor the fiscal years ended December 31, 2021 and 2020 01.01.2021 01.01.2020 NOTE 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Cash flows provided by (used in) Operating Activities Cash flows provided by Operating Activities Receipts from the sale of goods and the rendering of services (including taxes) 2,953,813,799 2,321,999,131 Payments for Operating Activities Payments to suppliers for goods and services (including taxes) (2,048,185,735) (1,517,256,079)Payments to and on behalf of employees (216,192,088) (189,758,823)Other payments for operating activities (value-added taxes on purchases, sales and others) (278,367,683) (266,228,165)Dividends received 1,441,355 1,176,079 Interest payments (55,497,167) (44,299,001)Interest received 5,373,494 7,538,364 Income tax payments (46,100,050) (29,474,900)Other cash movements (tax on bank debits Argentina and others) (11,230,942) (4,927,608)Cash flows provided by (used in) Operating Activities 305,054,983 278,768,998 Cash flows provided by (used in) Investing Activities Proceeds from sale of Property, plant and equipment 39,919 3,570 Purchase of Property, plant and equipment (138.856.157) (85,874,958)Purchase of intangible assets (5,171,139) (207,889)Payment on forward, term option and financial exchange agreements (375,579) (472,551)Collection on forward, term, option and financial exchange agreements 678,274 2,122,954 Purchase of other current financial assets (54,567,998) (139,449,884)Net cash flows used in Investing Activities (198.252.680) (223,878,758)Cash Flows generated from (used in) Financing Activities Charges for changes in share ownership of subsidiaries 3,000,000 - Proceeds (payments) from short term loans - 27,633,156 Loan payments (797,428) (25,197,737)Lease liability payments (4,008,924) (3,974,086)Dividend payments by the reporting entity (106,347,165) (99,985,500)Placement and payment of public debt (7,165,997) 214,565,128 Net cash flows (used in) generated by Financing Activities (115,319,514) 113,040,961 Net increase in cash and cash equivalents before exchange differences (8,517,211) 167,931,201 Effects of exchange differences on cash and cash equivalents 9,501,803 (13,574,854)Effects of inflation in cash and cash equivalents in Argentina (6,203,271) (2,393,634)Net increase (decrease) in cash and cash equivalents (5,218,679) 151,962,713 Cash and cash equivalents – beginning of period 4 309,530,699 157,567,986 Cash and cash equivalents - end of period 4 304,312,020 309,530,699 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements 6 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements 1 – CORPORATE INFORMATION Embotelladora Andina S.A. RUT (Chilean Taxpayer 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 is registeredunder No. 00124 of the Securities Registry and is regulated by Chile’s Financial Market Commission (hereinafter “CMF”) and pursuant to Chile’s Law 18,046 issubject to the supervision of this entity. It is also registered with the U.S. Securities and Exchange Commission (hereinafter “SEC”) and its stock is traded on theNew 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 The Coca-ColaCompany (TCCC), as well as commercialize and distribute some brands of other companies such as Monster, Heineken, AB InBev, Diageo and Capel, amongothers. The Company maintains operations and is licensed to produce, commercialize and distribute such products in certain territories in Chile, Brazil, Argentinaand Paraguay In Chile, the territories in which it has such a franchise 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 Coquimbo XIRegion de Aysén del General Carlos Ibáñez del Campo; XII Region of Magallanes and Chilean Antarctic. In Brazil, the aforementioned franchise covers much ofthe 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 the provinces of Córdoba,Mendoza, San Juan, San Luis, Entre Ríos, as well as part of the provinces of Santa Fe and Buenos Aires, Chubut, Santa Cruz, Neuquén, Río Negro, La Pampa,Tierra del Fuego, Antarctica and South Atlantic Islands. Finally, in Paraguay the territory comprises the whole country. The bottling agreement for the territories inChile expires in January 2023; in Argentina it expires in September 2022; in Brazil it expires in October 2022, and in Paraguay it expires in March 2022. Saidagreements are renewable upon the request of Embotelladora Andina S.A. and at the sole discretion of The Coca-Cola Company. Company management estimates that the bottling agreements will be renewed by The Coca-Cola Company as it has occurred in the past. As of the date of these consolidated financial statements, regarding Andina’s principal shareholders, the Controlling Group holds 55.25% of the outstanding shareswith voting rights, corresponding to the Series A shares. The Controlling Group is composed of the Chadwick Claro, Garcés Silva, Said Handal and Said Somavíafamilies, who control the Company in equal parts. These Consolidated Financial Statements reflect the consolidated financial position of Embotelladora Andina S.A. and its Subsidiaries, which were approved by theBoard of Directors on February 22, 2022. 7 2 – BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND APPLICATION OF ACCOUNTING CRITERIA 2.1 Accounting principles and basis of preparation The Company’s Consolidated Financial Statements for the fiscal years ended December 31, 2021 and 2020, have been prepared in accordance with the InternationalFinancial Reporting Standards (hereinafter "IFRS") issued by the International Accounting Standards Board (hereinafter "IASB"). These Consolidated Financial Statements have been prepared following the going concern principle by applying the historical cost method, with the exception,according to IFRS, of those assets and liabilities that are recorded at fair value. These Consolidated Statements reflect the consolidated financial position of Embotelladora Andina S.A. and its Subsidiaries as of December 31, 2021 and 2020 andthe results of operations for the periods between January 1 and December 31, 2021 and 2020, together with the statements of changes in equity and cash flows forthe periods between January 1 and December 31, 2021 and 2020. These Consolidated Financial Statements have been prepared based on the accounting records maintained by the Parent Company and by the other entities that arepart of the Company and are presented in thousands of Chilean pesos (unless expressly stated) as this is the functional and presentation currency of the Company.Foreign operations are included in accordance with the accounting policies established in Notes 2.5. 2.2 Subsidiaries and consolidation Subsidiary entities are those companies directly or indirectly controlled by Embotelladora Andina. Control is obtained when the Company has power over theinvestee, when it has exposure or is entitled to variable returns from its involvement in the investee and when it has the ability to use its power to influence theamount of investor returns. They include assets and liabilities, results of operations, and cash flows for the periods reported. Income or losses from subsidiariesacquired or sold are included in the Consolidated Financial Statements from the effective date of acquisition through the effective date of disposal, as applicable. The acquisition method is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of the subsidiary is the fair value ofassets transferred, equity securities issued, liabilities incurred or assumed on the date that control is obtained. Identifiable assets acquired, and identifiable liabilitiesand contingencies assumed in a business combination are accounted for initially at their fair values at the acquisition date. Goodwill is initially measured as theexcess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed.If the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the income statement. Intercompany transactions, balances and unrealized gains on transactions between Group entities are eliminated. Unrealized losses are also eliminated. 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 by functionunder "Non-Controlling Interest" and “Earnings attributable to non-controlling interests", respectively. 8 The consolidated financial statements include all assets, liabilities, income, expenses, and cash flows of the Company and its subsidiaries after eliminating balancesand transaction among the Group’s entities, the subsidiary companies included in the consolidation are the following: Ownership interest 12.31.2021 12.31.2020 Taxpayer ID Company Name Direct Indirect Total Direct Indirect Total 59.144.140-K Abisa Corp S.A. (1) - - - - 99.99 99.99 Foreign Aconcagua Investing Ltda. (1) - - - 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 77.427.659-9 Re-Ciclar S.A. (2) 60.00 - 60.00 - - - 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 VJ S.A. 15.00 50.00 65.00 15.00 50.00 65.00 (1) These companies were merged into Andina Bottling Investments Dos S.A.(2) Re-Ciclar S.A. is a company, whose purpose is to produce recycled resin for the Coca-Cola system and third parties 2.3 Investments in associates Ownership interest held by the Group in associates are recorded following the equity method. According to the equity method, the investment in an associate isinitially recorded at cost. As of the date of acquisition, the investment in the statement of financial position is recorded by the proportion of its total assets, whichrepresents the Group's participation in its capital, once adjusted, where appropriate, the effect of the transactions made with the Group, plus capital gains that havebeen generated in the acquisition of the company. Dividends received from these companies are recorded by reducing the value of the investment and the results obtained by them, which correspond to the Groupaccording to its ownership, are recorded under the item “Participation in profit (loss) of associates accounted for by the equity method.” 9 Associates are all entities over which the Group exercises significant influence but does not have control. Significant influence is the power to intervene in thefinancial and operating policy decisions of the associate, without having control or joint control over it. The results of these associates are accounted for using theequity method. Accounting policies of the associates are changed, where necessary, to ensure conformity with the policies adopted by the Company and unrealizedgains are eliminated. For associates located in Brazil, the financial statements accounted for using the equity method have a one-month lag because their reporting dates are differentfrom those of Embotelladora Andina. 2.4 Financial reporting by operating segment “IFRS 8 Operating Segments” requires that entities disclose information on the results of operating segments. In general, this is information that Management andthe Board of Directors use internally to assess performance of segments and allocate resources to them. Therefore, the following operating segments have beendetermined based on geographic location: · Operation in Chile· Operation in Brazil· Operation in Argentina· Operation in Paraguay 2.5 Functional currency and presentation currency 2.5.1 Functional currency Items included in the financial statements of each of the entities in the Company are measured using the currency of the primary economic environment in whichthe entity operates (“functional currency”). The functional currency of each of the Operations is the following: CompanyFunctional CurrencyEmbotelladora del AtlánticoArgentine Peso (ARS)Embotelladora AndinaChilean Peso (CLP)Paraguay RefrescosParaguayan Guaraní (PYG)Rio de Janeiro RefrescosBrazil 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 until thedisposal of the net investment, at which point they are reclassified to the income statement. Tax adjustments attributable to exchange differences in these monetaryitems 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 is determined. Losses orgains arising from the conversion of non-monetary items measured at fair value are recorded in accordance with the recognition of losses or gains arising from thechange in the fair value of the respective item (e.g., exchange differences arising from items whose fair value gains or losses are recognized in another overall resultor in results are also recognized under comprehensive income). 10 Functional currency in hyperinflationary economies Beginning July 2018, Argentina's economy is considered as hyperinflationary, according to the criteria established in the International Accounting Standard No. 29“Financial information in hyperinflationary economies” (IAS 29). This determination was carried out based on a series of qualitative and quantitative criteria,including an accumulated inflation rate of more than 100% for three years. In accordance with IAS 29, the financial statements of companies in whichEmbotelladora Andina S.A. participates in Argentina have been retrospectively restated by applying a general price index to the historical cost, in order to reflectthe changes in the purchasing power of the Argentine peso, as of the closing date of these financial statements. Non-monetary assets and liabilities were restated since February 2003, the last date an inflation adjustment was applied for accounting purposes in Argentina. Inthis context, it should be mentioned that the Group made its transition to IFRS on January 1, 2004, applying the attributed cost exemption for Property, plant andequipment. For consolidation purposes in Embotelladora Andina S.A. and as a result of the adoption of IAS 29, the results and financial situation of our Argentine subsidiarieswere converted to the closing exchange rate (ARS/CLP) at December 31, 2021, in accordance with IAS 21 "Effects of foreign currency exchange 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 statements of theprevious year (i.e., not adjusted for subsequent changes in price level or exchange rates). This results in differences between the closing net equity of the previousyear 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 Openingbalances under IAS 29 as an adjustment to equity and (b) subsequent effects, including re-expression under IAS 21 , as "Exchange rate differences in the conversionof foreign operations" under other comprehensive income. Inflation for the periods from January to December 2021 and 2020 was 50.21% and 36.01%, respectively. 2.5.2 Presentation currency The presentation currency is the Chilean peso, which is the functional currency of the parent company, for such purposes, the financial statements of subsidiaries aretranslated 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 is translated at theaverage 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 is reclassified tothe income statement. b.Translation of financial statements whose functional currency corresponds to hyperinflationary economies (Argentina) 11 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 to the incomestatement. 2.5.3 Exchange rates Exchange rates regarding the Chilean peso in effect at the end of each period are as follows: Date USD BRL ARS PYG 12.31.2021 844.69 151.36 8.22 0.123 12.31.2020 710.95 136.80 8.44 0.103 2.6 Property, plant, and equipment The elements of Property, plant and equipment, are valued for their acquisition cost, net of their corresponding accumulated depreciation, and of the impairmentlosses 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 substantial period oftime before being ready for use, such as production facilities. The Group defines a substantial period as one that exceeds twelve months. The interest rate used isthat corresponding to specific financing or, if it does not exist, the weighted average financing rate of the Company making the investment; and ii) personnelexpenses directly related to the construction in progress. Construction in progress is transferred to operating assets after the end of the trial period when they are available for use, from which moment depreciation begins. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset only when it is probable that future economic benefits associated withthe items of Property, plant and equipment will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance are charged toexpense 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. 12 The estimated useful lives by asset category are: Assets Range in years Buildings 15-80 Plant and equipment 5-20 Warehouse installations and accessories 10-50 Furniture and supplies 4-5 Motor vehicles 4-10 Other Property, plant and equipment 3-10 Bottles 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. 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, if there isevidence, 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 other expensesby 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 the subsidiary andthe fair value of the non-controlling interest in the subsidiary on the acquisition date. Since goodwill is an intangible asset with indefinite useful life, it isrecognized separately and tested annually for impairment. Goodwill is carried at cost less accumulated impairment losses. Gains and losses on the sale of an entity include the carrying amount of goodwill related to that entity. Goodwill is assigned to each cash generating unit (CGU) or group of cash-generating units, from where it is expected to benefit from the synergies arising from thebusiness combination. Such CGUs or groups of CGUs represent the lowest level in the organization at which goodwill is monitored for internal managementpurposes. 2.7.2Distribution rights Distribution rights are contractual rights to produce and/or distribute Coca-Cola brand products and other brands in certain territories in Argentina, Brazil, Chileand Paraguay. Distribution rights are born from the process of valuation at fair value of the assets and liabilities of companies acquired in business combinations.Distribution rights have an indefinite useful life and are not amortized, (as they are historically permanently renewed by The Coca-Cola Company) and thereforeare 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, Intangible Assets,have been met. Their accounting recognition is initially realized for their acquisition or production cost and, subsequently, they are valued at their net cost of theircorresponding accumulated amortization and of the impairment losses that, if applicable, they have experienced. The aforementioned software is amortized withinfour years. 13 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 for impairment ormore frequently if events or changes in circumstances indicate a potential impairment. Assets that are subject to amortization are tested for impairment wheneverthere is an event or change in circumstances indicating that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by whichthe carrying value of the asset exceeds its recoverable amount. The recoverable amount is the greater of an asset’s fair value less costs to sell or its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units -CGU). Regardless of what was stated in the previous paragraph, in the case of CGUs to which capital gains or intangible assets have been assigned with an indefiniteuseful life, the analysis of their recoverability is carried out systematically at the end of each fiscal year. These indications may include new legal provisions, changein the economic environment that affects business performance indicators, competition movements, or the disposal of an important part of a CGU. Management reviews business performance based on geographic segments. Goodwill is monitored at the operating segment level that includes the different cashgenerating units in operations in Chile, Brazil, Argentina and Paraguay. The impairment of distribution rights is monitored geographically in the CGU or group ofcash generating units, which correspond to specific territories for which Coca-Cola distribution rights have been acquired. These cash generating units or groups ofcash 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, and recognizes animpairment loss, for the excess of the asset's carrying amount over its recoverable amount. To determine the recoverable values of the CGU, management considersthe 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 2021 was estimated using the CAPM (Capital Asset Pricing Model) methodology, which allowsestimating a discount rate according to the level of risk of the CGU in the country where it operates. A nominal discount rate in local currency before tax isused according to the following table: 2021 Discountrates 2020 Discountrates Argentina 27.2% 28.1%Chile 7.1% 7.2%Brazil 9.0% 9.9%Paraguay 8.1% 9.3% 14 b)Other assumptions The financial projections to determine the net present value of the future cash flows of the CGUs are modeled based on the main historical variables and therespective budgets approved by the CGU. In this regard, a conservative growth rate is used, which reaches 4% for the carbonated beverage category and upto 5% for less developed categories such as juices and waters. Beyond the fifth year of projection, growth perpetuity rates are established per operationranging from a real 0.4% to 0.9% depending on the degree of maturity of the consumption of the products in each operation. In this sense, the variables withgreatest sensitivity in these projections are the discount rates applied in the determination of the net present value of projected cash flows, growthperpetuities and EBITDA margins considered in each CGU. In order to sensitize the impairment test, variations were made to the main variables used in the model. Ranges used for each of the modified variables are: -Discount Rate: Increase / Decrease of up to 200 bps as a value in the rate at which future cash flows are discounted to bring them to present value-Perpetuity: Increase / Decrease of up to 30 bps in the rate to calculate the perpetual growth of future cash flows-EBITDA margin: Increase / Decrease of 150 bps of EBITDA margin of operations, which is applied per year for the projected periods, that is, for theyears 2022-2026 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, 2021 and 2020, 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 of thepandemic, the impairment test yielded recovery values higher than the book values of assets, including those for the sensitivity calculations in the stress testconducted on the model. It should be noted that although no impairment indicators were identified for the CGUs described above, the annual review of other investments identified that forthe Verde Campo brand (a dairy producer owned by Trop Frutas do Brasil Ltda.), in which Andina Brazil has a minority interest, the recoverable amount would beBRL 21.8 million, an amount below the carrying amount recorded in the financial statements of BRL 34.6 million, in which Andina Brazil includes its proportionalinterest. Given the difference, the BRL 12.8 million loss was reduced from its book value as of December 2021, leaving a recoverable amount of BRL 21.8 million.The impairment effects were included in the consolidated results under "Share of profit (loss) of associates accounted for under the equity method". The mainreasons for the impairment of the investment are due to the lower flows expected for the dairy products segment for the local Brazilian market. 15 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 another entity. 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) ifthe contractual cash flows of financial instruments represent "solely payments of principal and interest” on the outstanding principal amount (the “SPPI criterion”).According to IFRS 9, financial assets are subsequently measured at (i) fair value with changes in P&L (FVPL), (ii) amortized cost or (iii) fair value through othercomprehensive 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 the financialassets to collect contractual cash flows that meet the SPPI criterion. This category includes the Group’s trade and other accounts receivable. Financial assets measured at fair value with changes in other comprehensive income (FVOCI), with gains or losses recognized in P&L at the time of liquidation.Financial assets in this category correspond to the Group's instruments that meet the SPPI criterion and are kept within a business model both to collect cash flowsand to sell. Other financial assets are classified and subsequently measures as follows: Equity instruments at fair value with changes in other comprehensive income (FVOCI) without recognizing earnings or losses in P&L at the time of liquidation.This category only includes equity instruments that the Group intends to keep in the foreseeable future and that the Group has irrevocably chosen to classify in thiscategory in the initial recognition or transition. Financial assets at fair value with changes in P&L (FVPL) include derivative instruments and equity instruments quoted that the Group had not irrevocably chosento classify at FVOCI in the initial recognition or transition. This category also includes debt instruments whose cash flow characteristics do not comply with theSPPI criterion or are not kept within a business model whose objective is to recognize contractual cash flows or sale. A financial asset (or, where applicable, a portion of a financial asset or a portion of a group of similar financial assets) is initially disposed (for example, canceled inthe Group's consolidated financial statements) when: -The rights to receive cash flows from the asset have expired, -The Group has transferred the rights to receive the cash flows of the asset or has assumed the obligation to pay all cash flows received without delay to athird party under a transfer agreement; and the Group (a) has substantially transferred all risks and benefits of the asset, or (b) has not substantiallytransferred 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 and credits,accounts payable or derivatives designated as hedging instruments in an effective coverage. 16 All financial liabilities are initially recognized at fair value and transaction costs directly attributable are netted from loans and credits and accounts payable. The Group's financial liabilities include trade and other accounts payable, loans and credits, including those discovered in current accounts, and derivative financialinstruments. 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 statement whenliabilities are disposed, as well as interest accrued in accordance with the effective interest rate method. A financial liability is disposed of when the obligation is extinguished, cancelled or expires. Where an existing financial liability is replaced by another of the samelender under substantially different conditions, or where the conditions of an existing liability are substantially modified, such exchange or modification is treated asa disposal of the original liability and the recognition of the new obligation. The difference in the values in the respective books is recognized in the statement ofincome. 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 financial position,if: -There is currently a legally enforceable right to offset the amounts recognized, and-It is intended to liquidate them for the net amount or to realize the assets and liquidate the liabilities simultaneously. 2.10Derivatives 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 associated withraw materials, and loan obligations. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at each closing date. Derivatives are accounted as financial assets when the fair value is positive and as financial liabilities when the fairvalue is negative. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the natureof 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 management objectivesand strategy for undertaking various hedging transactions. The group also documents its assessment, both at hedge inception and on an ongoing basis, of whetherthe derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in thefair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to theineffective portion is recognized immediately in the consolidated income statement within "other gains (losses)”. Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when foreign currencydenominated financial liabilities are translated into their functional currencies). The gain or loss relating to the effective portion of cross currency swaps hedging theeffects of changes in foreign exchange rates are recognized in the consolidated income statement within "foreign exchange differences.” When a hedging instrumentexpires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equityand is recognized when the forecast transaction is ultimately recognized in the consolidated income statement. 17 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 income statementunder "Other income and losses". The fair value of these derivatives is recorded under "other current financial assets" or "other current financial liabilities" in thestatement of financial position.” The Company does not use hedge accounting for its foreign investments. The Company also evaluates the existence of derivatives implicitly in contracts and financial instruments as stipulated by IFRS 9 and classifies them pursuant totheir contractual terms and the business model of the group. As of December 31, 2021, 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 of thetransaction. Fair value is based on the presumption that the transaction to sell the asset or to transfer the liability takes place; -In the asset or liability main market, or-In the absence of a main market, in the most advantageous market for the transaction of those assets or liabilities. The Company maintains assets related to foreign currency derivative contracts which were classified as Other current and non-current financial assets and Othercurrent and non-current financial liabilities, respectively, and are accounted at fair value within the statement of financial position. The Company uses the followinghierarchy 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 liabilitiesLevel 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 using Level2. 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 goods and workin progress includes raw materials, direct labor, other direct costs and manufacturing overhead (based on operating capacity) to bring the goods to marketablecondition, but it excludes interest expense. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable sellingexpenses. Spare parts and production materials are stated at the lower of cost or net realizable value. 18 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. 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 provision forexpected credit losses, pursuant to the requirements of IFRS 15, since they do not have a significant financial component, less the provision of expected creditlosses. The provision for expected credit losses is made applying a value impairment model based on expected credit losses for the following 12 months. The Groupapplies a simplified focus for trade receivables, thereby impairment is always recorded referring to expected losses during the whole life of the asset. The carryingamount of the asset is reduced by the provision of expected credit losses, and the loss is recognized in administrative expenses in the consolidated income statementby 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 investments. 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 their carryingamounts in the Consolidated Financial Statements, using the tax rates that have been enacted or substantively enacted on the balance sheet date and are expected toapply when the deferred income tax asset is realized, or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differencescan be utilized. The Company does not recognize deferred income taxes for temporary differences from investments in subsidiaries in which the Company can control the timing ofthe 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 in thoseitems; and intends to settle the resulting net debts, or to realize the assets and simultaneously settle the debts that have been offset by them. 19 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 collective agreementssubscribed with employees, which is recorded at actuarial value in accordance with IAS 19 “Employee Benefits”. Results from updated of actuarial variables are recorded within other comprehensive income in accordance with IAS 19. Additionally, the Company has retention plans for some officers, which have a provision pursuant to the guidelines of each plan. These plans grant the right tocertain officers to receive a cash payment on a certain date once they have fulfilled with the required years of service. The Company and its subsidiaries have recorded a provision to account for the cost of vacations and other employee benefits on an accrual basis. These liabilitiesare recorded under current non-financial liabilities. 2.17Provisions Provisions are recognized when the Company has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources willbe required to settle the obligation, and the amount can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current marketassessments 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, to determine ifthe contract is, or contains, a lease, evaluating whether the agreement transfers the right to control the use of an identified asset for a period of time in exchange fora consideration. Control is considered to exist if the client has i) the right to obtain substantially all the economic benefits from the use of an identified asset; and ii)the right to direct the use of the asset. The Company when operating as a lessee, at the beginning of the lease (on the date the underlying asset is available for use) records an asset for the right-of-use inthe statement of financial position (under Property, plant and equipment) and a lease liability (under Other financial liabilities). This asset is initially recognized at cost, which includes: i) value of the initial measurement of the lease liability; ii) lease payments made up to the start date lesslease incentives received; iii) the initial direct costs incurred; and iv) the estimation of costs for dismantling or restoration. Subsequently, the right-of-use asset ismeasured at cost, adjusted by any new measurement of the lease liability, less accumulated depreciation and accumulated losses due to impairment of value. Theright-of-use asset is depreciated in the same terms as the rest of similar depreciable assets, if there is reasonable certainty that the lessee will acquire ownership ofthe asset at the end of the lease. If such certainty does not exist, the asset depreciates at the shortest period between the useful life of the asset or the lease term. 20 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 theinterest rate implicit in the lease could not be easily determined. Lease payments included in the measurement of the liability include: i) fixed payments, less anylease incentive receivable; ii) variable lease payments; iii) residual value guarantees; iv) exercise price of a purchase option; and v) penalties for lease termination. The lease liability is increased to reflect the accumulation of interest and is reduced by the lease payments made. In addition, the carrying amount of the liability ismeasured again if there is a modification in the terms of the lease (changes in the term, in the amount of payments or in the evaluation of an option to buy or changein 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 constantinterest 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, recordingthe 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, togetherwith 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 of one 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 use andobtain substantially all the benefits of the goods and services exchanged. Revenue is measured based on the consideration to which it is expected to be entitled forsuch transfer of control, excluding amounts collected on behalf of third parties. Management has defined the following indicators for revenue recognition, applying the five-step model established by IFRS 15 “Revenue from contracts withcustomers”: 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, discountsand taxes. The revenue recognition criteria of the good provided by Embotelladora Andina corresponds to a single performance obligation that transfers the product to bereceived 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 and promotionalprograms for its products in the territories where the Company has distribution licenses. The contribution received from TCCC are recognized in net income afterthe conditions agreed with TCCC in order to become a creditor to such incentive have been fulfilled, they are recorded as a reduction in the marketing expensesincluded in the Administration Expenses account. Given its discretionary nature, the portion of contributions received in one period does not imply it will berepeated in the following period. 21 2.22Dividend distribution Dividend distribution to Company shareholders is recorded as a liability in the Company’s Consolidated Financial Statements, considering the 30% minimumdividend of the period’s earnings established by Chilean Corporate Law, unless otherwise agreed in the respective meeting, by the unanimity of the issued shares. Interim and final dividends are recorded at the time of their approval by the competent body, which in the first case is normally the Board of Directors of 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 financial statements. 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 the calculationsinclude sales volumes and prices, discount rates, marketing expenses and other economic factors including inflation. The estimation of these variables requires a useof estimates and judgments as they are subject to inherent uncertainties; however, the assumptions are consistent with the Company’s internal planning end pastresults. Therefore, management evaluates, and updates estimates according to the conditions affecting the variables. If these assets are considered to have beenimpaired, they will be written off at their estimated fair value or future recovery value according to the lowest discounted cash flows analysis. On an annual basisand close to each fiscal year end discounted cash flows in the Company's cash generating units in Chile, Brazil, Argentina and Paraguay generated a higher valuethan 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 require in certain cases that assets and liabilities be recorded at their fair value. Fair value is the price that would be received for selling an asset or paid totransfer a liability in a transaction ordered between market participants at the date of measurement. The basis for measuring assets and liabilities at fair value are their current prices in an active market. For those that are not traded in an active market, the Companydetermines fair value based on the best information available by using valuation techniques. In the case of the valuation of intangibles recognized as a result of acquisitions from business combinations, the Company estimates the fair value based on the"multi-period excess earning method", which involves the estimation of future cash flows generated by the intangible assets, adjusted by cash flows that do notcome from these, but from other assets. The Company also applies estimations over the period during which the intangible assets will generate cash flows, cashflows from other assets, and a discount rate. Other assets acquired, and liabilities assumed in a business combination are carried at fair value using valuation methods that are considered appropriate under thecircumstances. Assumptions include the depreciated cost of recovery and recent transaction values for comparable assets, among others. These valuation techniquesrequire certain inputs to be estimated, including the estimation of future cash flows. 22 2.23.3 Allowances for doubtful accounts The Group uses a provision matrix to calculate expected credit losses for trade receivables. Provisions are based on due days for various groups of 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 the historicalcredit loss experience with forward-looking information. For example, if expected economic conditions (i.e., gross domestic product) are expected to deteriorateover the next year, which can lead to more non-compliances in the industry, historical default rates are adjusted. At each closing date, the observed historical defaultrates are updated and changes in prospective estimates are analyzed. The assessment of the correlation between observed historical default rates, expected economicconditions and expected credit losses are significant estimates. 2.23.4 Useful life, residual value and impairment of property, plant, and equipment Property, plant, and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of those assets. Changes incircumstances, such as technological advances, changes to the Company’s business model, or changes in its capital strategy might modify the effective useful livesas compared to our estimates. Whenever the Company determines that the useful life of Property, plant and equipment might be shortened, it depreciates the excessbetween the net book value and the estimated recoverable amount according to the revised remaining useful life. Factors such as changes in the planned usage ofmanufacturing equipment, dispensers, transportation equipment and computer software could make the useful lives of assets shorter. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of any of those assets may not be recovered. The estimateof future cash flows is based, among other factors, on certain assumptions about the expected operating profits in the future. The Company’s estimation ofdiscounted cash flows may differ from actual cash flows because of, among other reasons, technological changes, economic conditions, changes in the businessmodel, or changes in operating profit. If the sum of the projected discounted cash flows (excluding interest) is less than the carrying amount of the asset, the assetshall be written-off to its estimated recoverable value. At the closing of December 2021, based on the best estimate according to the most recent reliable, reasonable and available information, Management performed areview of its accounting estimates of useful lives in the Operations in Argentina, Brazil and Paraguay. The review of the estimates resulted in slight changes mainly in fixed assets related to Furniture and Fixtures: Assets Previous range of years New range of yearsBuildings 15-80 15-80Plant and equipment 5-20 5-20Fixed and ancillary equipment 10-50 10-50Furniture and fixtures 4-5 5Vehicles 4-10 4-10Other property, plant and equipment 3-10 5-10Containers and cases 2-5 1-8 The impact of the change in the useful life of the Company's foreign operations is not significant in the current and future years. 23 2.23.5 Contingency liabilities Provisions for litigation and other contingencies are recognized when the Company has a current obligation (legal or implied) as a result of a past event, it isprobable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the current obligation at the date of issuance of the financialstatements, considering the risks and uncertainties surrounding the obligation. When a provision is measured using estimated cash flows to settle the currentobligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The accrual of the discount isrecognized as a finance cost. Incremental legal costs expected to be incurred in settling the legal claim are included in the measurement of the provision. Provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimate. If it is no longer probable that an outflow ofeconomic benefits will be required to settle the obligation, the provision is reversed. A contingent liability does not imply the recognition of a provision. Legal costs expected to be incurred in defending the legal claim are recognized in profit or losswhen incurred. 2.24.1New Standards, Interpretations and Amendments for annual periods beginning on or after January 1, 2021. Amendments to IFRS which have been issued and are effective from January 1, 2021, are detailed below. AmendmentsApplication dateIFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16Interest Rate Benchmark Reform—Phase 2January 1, 2021IFRS 16COVID-19-Related Rent ConcessionsApril 1, 2021 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 4 and IFRS16. 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 an almostrisk-free alternative interest rate. Amendments are required and early application is permitted. A hedging ratio must be resumed if the hedging ratio were discontinued solely due to the changesrequired by the reform of the benchmark interest rate and would therefore not have been discontinued if the second phase of amendments had been implemented atthat time. While application is retrospective, an entity is not required to restate previous periods. The amendment is applicable for the first time in 2021, however, it has no impact on Andina’s financial statements. 24 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 lease modificationsdue to rent concessions occurring as a direct consequence of the Covid-19 pandemic. The amendment does not affect lessors. On March 31, the IASB extended thisamendment for one year 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. A lesseemaking this choice will recognize changes in lease payments from Covid-19-related rent reductions in the same way as it would recognize the change under IFRS16 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 theOpening 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 April 1, 2021. 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 financial statementsare set forth below. The Company has not made an early adoption of these standards. Standards and InterpretationsMandatory application dateIFRS 17Insurance ContractsJanuary 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, presentationand disclosure. Once effective, it will replace IFRS 4 Insurance Contracts issued in 2005. The new rule applies to all types of insurance contracts, regardless of thetype of entity issuing them, as well as certain guarantees and financial instruments with certain characteristics of discretionary participation. Some exceptions withinthe 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 the entityapplies 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. AmendmentsDate ofapplicationIAS 1Disclosure of Accounting PoliciesJanuary 1, 2023IAS 1Classification of liabilities as current or non-currentJanuary 1, 2023IFRS 3Reference to the Conceptual FrameworkJanuary 1, 2022IAS 16Property, Plant and Equipment — Proceeds before Intended UseJanuary 1, 2022IAS 37Onerous Contracts—Cost of Fulfilling a ContractJanuary 1, 2022IFRS 10 and IAS 28Consolidated Financial Statements - sale or contribution of assets between an investor and its associate or joint ventureTo be determinedIAS 12Deferred taxes regarding assets and liabilities that arise from a single transactionJanuary 1, 2023IAS 8Definition of Accounting estimateJanuary 1, 2023 25 IAS 1 Presentation of Financial Statements – Disclosure of Accounting Policies In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making materiality judgements, providing guidance and examples to helpentities apply relative importance judgements to accounting policy disclosures. Amendments have the purpose of helping entities provide disclosure on accounting policies that are more useful by: ·Replacing the requirement for entities to disclose “significant” accounting policies with the requirement to disclose its “material” accounting policies.·Include guidance on how entities apply the concept of materiality indecision-making on the disclosure of accounting policies. On assessing the relative importance of the accounting policy information, entities should consider both the size of the transaction as well as other events andconditions and the nature of these transaction. The amendment is effective for annual periods beginning on January 1, 2023. Early application of IAS 1 amendments is allowed as long as it is disclosed. 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 the amendmentssuggesting that the terms of their existing loan agreements should be renegotiated. In this context, it is important to stress that amendments must be implementedretrospectively. 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 March 2018without 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 thesame time or before, an entity also applies all amendments contained in the amendments to the Conceptual Framework References of the IFRS Standards issued inMarch 2018. The amendments will provide consistency in financial information and avoid potential confusion by having more than one version of the Conceptual Framework inuse. 26 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 that asset tothe location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from sellingsuch 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. 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 to include whenassessing 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 contracts at thebeginning of the annual reporting period in which the entity first applies the amendment (date of initial application). Early application is permitted and must bedisclosed. The amendments are intended to provide clarity and help ensure consistent implementation of the standard. Entities that previously applied the incremental costapproach will see an increase in provisions to reflect the inclusion of costs directly related to contract activities, while entities that previously recognized contractualloss provisions using the guidance to the previous standard, IAS 11 Construction Contracts, should exclude the allocation of indirect costs from their provisions. IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures – sale or contribution of assets between an investorand its associate or joint venture Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011) address a recognized inconsistencybetween IFRS 10 requirements and IAS 28 (2011) requirements in the treatment of the sale or contribution of assets between an investor and its associate or jointventure. The amendments, issued in September 2014, state that when the transaction involves a business (whether it is in a subsidiary or not) all gains, or lossesgenerated 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 asubsidiary. The mandatory implementation date of these amendments is yet to be determined because the IASB is awaiting the results of its research project onaccounting according to the equity method of accounting. These amendments must be applied retrospectively, and early adoption is allowed, which must bedisclosed. IAS 12 Deferred tax related to assets and liabilities arising from a single transaction In May 2021, the IASB issued amendments to IAS 12, narrowing the scope of the initial recognition exception pursuant to IAS 12, so that it is no longer applied totransactions giving rise to equal amounts of taxable and deductible temporary differences. The amendments clarify that when liability settlement payments are deductible for tax purposes, it is a judgement call (having considered the applicable taxlegislation) if those deductions are attributable to tax effects on liabilities recognized in the financial statements (and interest expenses) or to the related assetcomponent (and interest expenses). This judgment is important in determining if temporary differences exist in the initial recognition of the asset and liability. Likewise, pursuant to the issued amendments, the exception in the initial recognition does not apply to transactions that, upon initial recognition, give rise to equaltaxable and deductible temporary differences. It only applies when recognizing a lease asset and a lease liability (or a dismantling liability and a dismantling assetcomponent) give rise to taxable and deductible temporary differences that are not equal. However, it is possible that the resulting deferred tax assets and liabilitiesmay not be the same (e.g., if the entity cannot benefit from the tax deductions or if the tax rates applied are different from the taxable and deductible temporarydifferences). In those cases, an entity would need to account for the difference between the deferred tax asset and liability in the P&L.The amendment will be effective for annual periods beginning on January 1, 2023. 27 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Accounting Estimates In February 2021, the IASB issued amendments to IAS 8, incorporating a new definition for “accounting estimates”. The amendments clarify the distinctionbetween changes to accounting estimates and changes to accounting policies and error correction. Also, they clarify how entities use input and measurementtechniques to develop accounting estimates. The amended standard clarifies that the effects of accounting estimates, resulting from a change in the input or a change in the measurement technique areconsidered as changes in accounting estimates, as long as these did not result from error corrections of previous periods. The previous definition of a change inaccounting estimate specified that the changes in accounting estimates could result from new information or new developments. Therefore, said changes are notconsidered error corrections. The amendment will be effective for annual periods beginning on January 1, 2023. The Company will perform an impact assessment of the above described amendments once they become effective. 3 – FINANCIAL REPORTING BY SEGMENT The Company provides financial information by segments according to IFRS 8 “Operating Segments,” which establishes standards for reporting by operatingsegment 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 operating decision-maker has been identified as the Company´s Board of Directors who makes the Company’s strategic decisions. The following operating segments have been determined for strategic decision making based on geographic location: ·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 country thatmanages 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. 28 A summary of the Company's operations by segment according to IFRS is as follows: For the period ended December 31, 2021 Operation inChile Operation inArgentina Operation inBrazil Operation inParaguay Inter-countryeliminations Consolidated,total CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Revenues from ordinary activities 975,296,052 536,955,468 539,257,423 169,216,180 (3,992,530) 2,216,732,593 Cost of sales (630,862,197) (296,090,157) (361,323,450) (91,109,499) 3,992,530 (1,375,392,773)Distribution expenses (78,995,679) (78,019,531) (33,458,924) (9,478,239) - (199,952,373)Administrative expenses (142,762,661) (110,329,089) (71,995,712) (23,862,401) - (348,949,863)Financial income (2,936,819) 5,011,888 5,327,527 389,273 - 7,791,869 Financial costs (27,669,541) (577,941) (24,744,974) - - (52,992,456)Net financial costs (30,606,360) 4,433,947 (19,417,447) 389,273 - (45,200,587)Share of entity in income of associates accounted for usingthe equity method, total 2,799,437 - 293,665 - - 3,093,102 Income tax expense (15,756,620) (25,697,558) 82,395 (4,805,536) - (46,177,319)Oher income (expenses) (29,072,689) (10,652,582) (7,834,863) 439,023 - (47,121,111)Net income of the segment reported 50,039,283 20,600,498 45,603,087 40,788,800 - 157,031,668 Depreciation and amortization 38,189,190 32,863,821 23,647,789 10,074,503 - 104,775,303 Current assets 626,277,188 117,319,226 183,268,173 64,121,536 - 990,986,123 Non-current assets 739,113,114 216,757,538 720,101,674 279,148,198 1,955,120,524 Segment assets, total 1,365,390,302 334,076,764 903,369,847 343,269,734 - 2,946,106,647 Carrying amount in associates accounted for using the equitymethod, total 52,519,831 - 38,969,363 - - 91,489,194 Segment disbursements of non-monetary assets 53,513,835 33,789,235 30,171,387 21,381,700 - 138,856,157 Current liabilities 283,835,866 101,832,549 109,691,047 34,207,817 - 529,567,279 Non-current liabilities 743,108,008 20,388,886 534,386,761 17,242,154 - 1,315,125,809 Segment liabilities, total 1,026,943,874 122,221,435 644,077,808 51,449,971 - 1,844,693,088 Cash flows (used in) provided by in Operating Activities 181,679,320 55,490,096 36,121,074 31,764,493 - 305,054,983 Cash flows (used in) provided by Investing Activities (108,283,362) (33,789,408) (32,875,359) (23,304,551) - (198,252,680)Cash flows (used in) provided by Financing Activities (111,533,388) (940,318) (2,455,073) (390,735) - (115,319,514) 29 For the period ended December 31, 2020 Operation inChile Operation inArgentina Operation inBrazil Operation in Paraguay Inter-countryeliminations Consolidated, total CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)Revenues from ordinary activities 644,761,885 318,827,620 580,063,307 157,152,584 (2,524,159) 1,698,281,237Cost 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)Financial income 6,437,945 1,169,193 7,068,396 270,345 - 14,945,879Financial costs (23,938,992) (729,164) (30,104,681) - - (54,772,837)Net financial costs (17,501,047) 440,029 (23,036,285) 270,345 - (39,826,958)Share of entity in income of associates accounted for usingthe equity method, total 1,248,478 - 980,285 - - 2,228,763Income tax expense (23,057,195) (7,668,059) (20,536,914) (3,643,231) - (54,905,399)Oher income (expenses) (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 - 797,297,716Non-current assets 636,275,547 144,802,176 643,447,811 226,241,150 - 1,650,766,684Segment assets, total 1,168,989,516 215,017,770 793,157,414 270,899,700 - 2,448,064,400 Carrying amount in associates accounted for using the equitymethod, 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 - 378,056,186Non-current liabilities 748,105,248 10,717,606 465,225,175 14,399,594 - 1,238,447,623Segment 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 Operating Activities 191,911,595 24,603,123 36,409,227 25,845,053 - 278,768,998Cash flows (used in) provided by Investing Activities (178,910,100) (16,010,950) (17,075,672) (11,882,036) - (223,878,758)Cash flows (used in) provided by Financing Activities 117,081,470 (167,606) (3,443,826) (429,077) - 113,040,961 30 4 – CASH AND CASH EQUIVALENTS The composition of cash and cash equivalents is as follows: By item 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Cash 503,687 339,628 Bank balances 94,472,637 82,997,449 Othe fixed rate instruments 209,335,696 226,193,622 Cash and cash equivalents 304,312,020 309,530,699 Other fixed income instruments correspond primarily to investments in short-term instruments with good credit ratings, such as Time Deposits and Mutual Funds,which are highly liquid, with insignificant risk of change in value and easily converted into known amounts of cash.. There are no restrictions for significantamounts available to cash. By currency 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) USD 13,640,823 21,332,268 EUR 2,838,102 223,449 ARS 22,425,407 14,821,502 CLP 176,278,025 201,936,140 PYG 32,856,836 21,688,915 BRL 56,272,827 49,528,425 Cash and cash equivalents 304,312,020 309,530,699 5 – OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS The composition of other financial assets is as follows: Balance Current Non-current Other financial assets 12.31.2021 12.31.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Financial assets measured at amortized cost (1) 194,509,044 140,304,853 1,216,865 1,216,865 Financial assets at fair value (2) 961,705 - 281,337,127 150,983,295 Other financial assets measured at amortized cost (3) - - 14,078,020 9,813,118 Total 195,470,749 140,304,853 296,632,012 162,013,278 (1)Financial instrument that does not meet the definition of cash equivalents as defined in Note 2.13. (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. 31 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 12.31.2021 12.31.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Prepaid expenses 7,860,112 7,932,770 1,254,775 527,110 Tax credit remainder (1) 2,022,493 234,124 (a) 52,746,937 (a) 76,262,417 Guaranty deposit - 286 - - Judicial deposits - - 15,259,876 11,492,642 Others (2) 4,836,499 5,207,201 1,600,028 1,960,503 Total 14,719,104 13,374,381 70,861,616 90,242,672 (1) (a) In November 2006, Rio de Janeiro Refrescos Ltda. ("RJR") filed a court order No. 0021799-23.2006.4.02.5101 seeking recognition of the right to excludeICMS (Tax on Commerce and Services) from the PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security)calculation base, as well as recognition of the right to obtain reimbursement of amounts unduly collected since November 14, 2001, duly restated using the Selicinterest rate. On May 20, 2019, the ruling favoring RJR became final, allowing the recovery of amounts overpaid from November 14, 2001 to August 2017. It isworth noting that in September 2017, RJR had already obtained a Security Mandate, which granted it the right to exclude, from that date, the ICMS from the PISand COFINS calculation base. The company took steps to assess the total amount of the credit at issue for the period of unduly collection of taxes from November 2001 to August 2017,totaling approximately CLP 92,783 million (CLP 103,540 million in 2020) (BRL 613 million, of which BRL 370 million corresponds to capital and BRL 243million to interest and monetary restatement. These amounts were recorded as of December 31, 2019. In addition, the company acknowledged the indirect costs(attorneys' fees, consulting, auditing, indirect taxes and other obligations) resulting from the recognition of the right acquired in court, totaling BRL 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). Amounts already offset until 2021 were CLP 49,040 million (BRL 234 million) and in 2020 CLP 16,142 million (BRL 118 million) . Companhia de Bebidas Ipiranga ("CBI") acquired in September 2013, also filed a court order No. 0014022-71.2000.4.03.6102 in order to recognize the sameissue as the one previously described for RJR. In September 2019, the ruling favoring CBI became final, allowing the recovery of the amounts overpaid fromSeptember 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 tothe contractual clause ("Subscription Agreement for Shares and Exhibits"), as soon as collected by RJR, this payment should be immediately paid to former CBIshareholders (supervention favoring former CBI shareholders). Based on supporting documents found, for the August 1993-November 2013 period, the amountof credits related to this process have been calculated and totaled CLP 24,823 million (BRL 164 million, of which BRL 80 million corresponds to capital andBRL 84 million correspond to interest and monetary restatement), from this amount, CLP 1,059 million (BRL 7 million) must be deducted from indirect taxes,thus generating an account payable to former shareholders for CLP 23,612 million (CLP 21,204 million in 2020) (BRL 156 billion) and a governmentreceivables related to credits for that same amount. It is worth mentioning that for the September 1989-July 1993 period, the Company did not account the creditdue 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 court orderseeking recognition of the right to the same issue as RJR's action. On June 13, 2019, the ruling favoring Sorocaba became final, allowing the recovery of theamounts overpaid from July 5, 1992 until the date on which the decision became final. As of December 31, 2021, the impacts were recognized in RJR's resultfrom its ownership in Sorocaba, totaling CLP 6,703 million (BRL 49 million, of which BRL 28 million correspond to capital and BRL 21 million correspond tointerest 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 1,513 million (CLP 1,368 million in 2020) (BRL 10 million). Income tax payment occurs upon credit settlement, with that the respective deferred tax liability recorded was CLP 1,967 million (CLP 1,778 million in 2020)(BRL 13 million). In 2020, 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. 32 7 – TRADE ACCOUNTS AND OTHER ACCOUNTS RECEIVABLE The composition of trade and other receivables is as follows: Balance Current Non-current Trade debtors and other accounts receivable, Net 12.31.2021 12.31.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Trade debtors 205,466,469 151,017,754 42,726 40,432 Other debtors 55,281,501 41,688,151 83,738 32,219 Other accounts receivable 4,742,656 1,315,348 - 1,211 Total 265,490,626 194,021,253 126,464 73,862 Balance Current Non-current Trade debtors and other accounts receivable, Gross 12.31.2021 12.31.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Trade debtors 210,175,775 154,591,684 42,726 40,432 Other debtors 55,281,501 44,691,925 83,738 32,219 Other accounts receivable 4,744,721 1,533,307 - 1,211 Total 270,201,997 200,816,916 126,464 73,862 The stratification of the portfolio is as follows: Balance Current trade debtors without impairment impact 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Less than one month 195,325,587 147,177,119 Between one and three months 6,843,836 2,230,594 Between three and six months 1,808,425 1,708,015 Between six and eight months 2,235,866 509,855 Older than eight months 4,004,787 3,006,533 Total 210,218,501 154,632,116 The Company has approximately 282,200 clients, which may have balances in the different sections of the stratification. The number of clients is distributedgeographically with 67,100 in Chile, 87,400 in Brazil, 65,800 in Argentina and 61,900 in Paraguay. 33 The movement in the allowance for expected credit losses is presented below: 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Opening balance 6,795,663 6,492,987 Increase (decrease) 1,697,887 2,321,958 Provision reversal (3,832,220) (1,595,521)Increase (decrease) for changes of foreign currency 50,041 (423,761)Sub – total movements (2,084,292) 302,676 Ending balance 4,711,371 6,795,663 8 – INVENTORIES The composition of inventories is detailed as follows: Details 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Raw materials (1) 134,153,673 80,902,721 Finished goods 34,222,429 27,556,884 Spare parts and supplies 23,063,797 19,592,377 Work in progress 109,467 76,577 Other inventories 3,358,474 3,101,016 Obsolescence provision (2) (3,557,634) (3,256,925) Total 191,350,206 127,972,650 The cost of inventory recognized as cost of sales amounts to CLP 1,375,392,773 thousand and CLP 1,022,498,659 thousand as of December 31, 2021 and 2020,respectively. (1)Approximately 80% is composed of concentrate and sweeteners used in the preparation of beverages, as well as caps and PET supplies used in the packagingof the product. (2)The obsolescence provision is related mainly with the obsolescence of spare parts classified as inventories and to a lesser extent to finished products and rawmaterials. The general standard is to provision all those multi-functional spare parts without utility in rotation in the last four years prior to the technicalanalysis technical to adjust the provision. In the case of raw materials and finished products, the obsolescence provision is determined according to maturity. 9 – TAX ASSETS AND LIABILITIES The composition of current tax accounts receivable is the following: Tax assets 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Tax credits (1) 10,224,368 218,472 Total 10,224,368 218,472 (1) This item corresponds to tax surplus credits in Chile and other tax credits reported by the Brazilian operation. 34 The composition of current tax accounts payable is the following: Current Non-current Tax liabilities 12.31.2021 12.31.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Income tax expense 30,512,787 8,828,599 - 20,957 Total 30,512,787 8,828,599 - 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 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Current income tax expense 45,614,890 55,522,189 Current tax adjustment previous period (2,284,477) (735,907)Foreign dividends tax withholding expense 2,877,817 6,987,142 Other current tax expense (income) (114,130) (47,569)Current income tax expense 46,094,100 61,725,855 Expense (income) for the creation and reversal of temporary differences of deferred tax and others 83,220 (6,820,456)Expense (income) for deferred taxes 83,220 (6,820,456)Total income tax expense 46,177,320 54,905,399 The distribution of national and foreign tax expenditure is as follows: Income taxes 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Current taxes Foreign (37,363,624) (39,128,690)National (8,730,476) (22,597,165)Current tax expense (46,094,100) (61,725,855)Deferred taxes Foreign 6,942,925 7,280,487 National (7,026,145) (460,031)Deferred tax expense (83,220) 6,820,456 Income tax expense (46,177,320) (54,905,399) 35 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 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Net income before taxes 203,208,988 178,022,719 Tax expense at legal rate (27.0%) (54,866,427) (48,066,134)Effect of tax rate in other jurisdictions 860,745 1,032,950 Permanent differences: Non-taxable revenues (10,868,056) (2,417,582)Non-deductible expenses (2,935,310) (6,007,898)Tax effect on excess tax provision in previous periods 13,250,594 113,747 Tax effect of price-level restatement for Chilean companies (15,794,098) (5,936,464)Subsidiaries tax withholding expense and other legal tax debits and credits 24,175,231 6,375,982 Adjustments to tax expense 7,828,361 (7,872,215)Tax expense at effective rate (46,177,321) (54,905,399)Effective rate 22.7% 30.8% The applicable income tax rates in each of the jurisdictions where the Company operates are the following: Rate Country 2021 2020 Chile 27.0% 27.0%Brazil 34.0% 34.0%Argentina 35.0% 30.0%Paraguay 10.0% 10.0% The entry into force of Argentine Law No. 27.630 amended the Income Tax Law and established corporate income tax rates. The Law replaces the fixed tax rate of30% applicable for 2021 and 25% for 2022 onwards with a progressive tax scale according to the following scheme: earnings up to ARS 5,000,000 are taxed at25%, earnings between ARS 5,000,000 and ARS 50,000,000 are taxed at 30% and earnings above ARS 50,000,000 are taxed at 35%. The deferred tax expense amount related to the tax rate change for the Operation in Argentina is CLP 4,195,619 thousand (ARS 510,416 thousand). 36 10.2 Deferred taxes The net cumulative balances of temporary differences resulted in deferred tax assets and liabilities, which are detailed as follows: 12.31.2021 12.31.2020 Temporary differences Assets Liabilities Assets Liabilities CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Property, plant and equipment 5,944,185 52,435,301 5,421,466 39,544,960 Obsolescence provision 1,696,051 - 1,340,235 - ICMS exclusion credit - 4,925,230 - 17,679,221 Employee benefits 3,163,172 115,828 4,475,497 18,300 Provision for severance indemnity 271,789 271,367 150,027 101,339 Tax loss carry forwards (1) 4,292,863 698 6,423,820 - Tax goodwill Brazil - 3,126,125 2,080,987 - Contingency provision 30,216,275 - 24,103,234 - Foreign Exchange differences (2) 7,165,844 - 8,116,713 - Allowance for doubtful accounts 638,484 - 915,562 - Assets and liabilities for placement of bonds - 2,081,271 378,901 2,377,870 Lease liabilities 1,781,922 - 1,528,990 - Inventories 652,669 - 469,416 - Distribution rights - 151,228,739 - 144,151,661 Hedge derivatives - - - - Spare parts - 3,374,376 - - Intangibles 130 5,440,229 - - Others 5,906,158 5,326,478 3,785,655 7,060,830 Subtotal 61,729,542 228,325,642 59,190,503 210,934,181 Total assets and liabilities net 1,858,727 168,454,827 1,925,869 153,669,547 (1)Tax losses mainly associated with the subsidiary Embotelladora Andina Chile S.A. Tax losses have no expiration date in Chile.(2)Corresponds to deferred taxes for exchange rate differences generated on the translation of debts expressed in foreign currency that for tax purposes arerecognized when incurred. Deferred tax account movements are as follows: Movement 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Opening balance 151,743,678 168,085,407 Increase (decrease) in deferred tax 4,507,688 4,411,619 Increase (decrease) due to foreign currency translation* 10,344,734 (20,753,348)Total movements 14,852,422 (16,341,729)Ending balance 166,596,100 151,743,678 *IAS 29 effects due to inflation in Argentina 37 11 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at the close of each period is detailed as follows: Property, plant and equipment, gross 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Construction in progress 56,280,594 34,194,083 Land 101,286,107 94,321,726 Buildings 306,300,748 266,921,167 Plant and equipment 613,537,377 515,395,328 Information technology equipment 29,470,242 24,323,557 Fixed installations and accessories 61,264,172 45,558,495 Vehicles 56,346,552 45,808,748 Leasehold improvements 322,036 203,164 Rights of use (1) 69,616,828 56,726,206 Other properties, plant and equipment (2) 383,403,363 314,602,940 Total Property, plant and equipment, gross 1,677,828,019 1,398,055,414 Accumulated depreciation ofProperty, plant and equipment 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Buildings (102,957,623) (86,004,289)Plant and equipment (443,885,822) (369,605,125)Information technology equipment (23,857,025) (19,445,250)Fixed installations and accessories (38,165,051) (27,910,603)Vehicles (37,161,952) (29,397,964)Leasehold improvements (208,747) (144,022)Rights of use (1) (45,962,853) (35,388,929)Other properties, plant and equipment (2) (269,249,819) (224,582,687)Total accumulated depreciation (961,448,892) (792,478,869)Total Property, plant and equipment, net 716,379,127 605,576,545 (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 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Bottles 36,546,377 30,275,255 Marketing and promotional assets (market assets) 55,210,620 44,106,959 Other Property, plant and equipment 22,396,547 15,638,039 Total 114,153,544 90,020,253 38 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 Rights-of-use,net (1) Property, plant and 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 01.01.2021 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 Additions 61,100,226 - 3,708,881 19,025,057 1,428,080 12,068 171,420 8,738 47,426,736 - 132,881,206 Right-of use additions - - - - - - - - - 9,070,997 9,070,997 Disposals (74,476) - (276,312) (277,845) (3,896) (11) (9,573) - (3,156,795) - (3,798,908)Transfers between items ofProperty, plant and equipment (39,845,790) - 4,370,826 21,182,049 751,603 606,279 4,771,885 88,345 8,074,803 - - Right-of-use transfers - - - - - - - - - - - Depreciation expense - - (7,862,888) (32,058,439) (2,219,235) (3,700,948) (4,054,092) (51,774) (43,651,397) - (93,598,773)Amortization - - - - - - - - - (8,386,063) (8,386,063)Increase (decrease) due toforeign currency translationdifferences 6,513,216 6,964,382 21,941,520 23,364,406 658,167 3,080,061 2,264,353 8,840 16,399,966 1,759,346 82,954,257 Other increase (decrease) (2) (5,606,665) (1) 544,220 (7,373,876) 120,191 5,453,780 (370,177) (2) (960,022) (127,582) (8,320,134)Total movements 22,086,511 6,964,381 22,426,247 23,861,352 734,910 5,451,229 2,773,816 54,147 24,133,291 2,316,698 110,802,582 Ending balance al 12.31.2021 56,280,594 101,286,107 203,343,125 169,651,555 5,613,217 23,099,121 19,184,600 113,289 114,153,544 23,653,975 716,379,127 (1) Right of use assets is composed as follows: Right-of-use Gross asset Accumulateddepreciation Net asset CLP (000’s) CLP (000’s) CLP (000’s) Constructions and buildings 4,042,921 (2,140,590) 1,902,331 Plant and Equipment 43,450,544 (27,325,328) 16,125,216 IT Equipment 997,458 (750,993) 246,465 Motor vehicles 12,171,762 (7,065,299) 5,106,463 Others 8,954,143 (8,680,643) 273,500 Total 69,616,828 (45,962,853) 23,653,975 Lease liabilities interest expenses at the closing of the period reached CLP 1,706,214 thousand. (2) Corresponds mainly to the effect of adopting IAS 29 in Argentina. 39 Construction in progress Land Buildings, net Plant and equipment, net IT equipment, net Fixed facilities and accessories, net Vehicles, net Leasehold improvements, net Others Rights-of-use, net (1) Property, plant and 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 01.01.2020 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 Right-of use additions - - - - - - - - - 1,775,457 1,775,457 Disposals - - (164,113) (2,485,145) (2,426) - (22,823) - (6,046,468) (87,043) (8,808,018)Transfers between items ofProperty, 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) due toforeign currency translationdifferences (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 increase (decrease) (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 Accumulateddepreciation 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 thousand. (2) Corresponds mainly to the effect of adopting IAS 29 in Argentina. 40 12 – RELATED PARTIES Balances and main transactions with related parties are detailed as follows: 12.1 Accounts receivable: 12.31.2021 12.31.2020 Taxpayer ID Company Relationship Country Currency Current Non-current Taxpayer ID CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) 96.891.720-K Embonor S.A. Shareholder related Chile CLP 3,870,800 - 3,643,603 - 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile CLP 62,756 98,941 16,024 138,346 Foreign Coca-Cola de Argentina Director related Argentina ARS 2,490,194 - 4,558,753 - Foreign Alimentos de Soja S.A.U. Shareholder related Argentina ARS 166,813 - 308,882 - 96.517.210-2 Embotelladora Iquique S.A. Shareholder related Chile CLP 155,264 - 292,801 - 86.881.400-4 Envases CMF S.A. Associate Chile CLP 1,266,871 - 773,732 - 77.526.480-2 Comercializadora Nova Verde Common shareholder Chile CLP 934,350 - 837,837 - 76.572.588-7 Coca-Cola del Valle New Ventures S.A. Associate Chile CLP 371,907 - 1,401,898 - 76.140.057-6 Monster Associate Chile CLP 87,865 - 41,878 - 79.826.410-9 Guallarauco Associate Chile CLP 12,230 - - - Total 9,419,050 98,941 11,875,408 138,346 12.2 Accounts payable: 12.31.2021 12.31.2020 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 19,134,864 - 18,897,093 - Foreign Recofarma do Indústrias AmazonasLtda. Shareholder related Brazil BRL 13,770,200 11,557,723 7,926,109 10,790,089 86.881.400-4 Envases CMF S.A. Associate Chile CLP 7,609,951 - 3,856,973 - Foreign Ser. y Prod. para Bebidas RefrescantesS.R.L. Shareholder Argentina ARS 9,893,495 - 4,848,196 - Foreign Leão Alimentos e Bebidas Ltda. Associate Brazil BRL 577,723 - 1,323,609 - Foreign Monster Energy Brasil Com de BebidasLtda. Shareholder related Brazil BRL 2,173,901 - 1,156,786 - 76.572.588-7 Coca-Cola del Valle New Ventures S.A. Associate Chile CLP 367,186 - 490,758 - 89.996.200-1 Envases del Pacífico S.A. Director related Chile CLP - - 3,414 - 96.891.720-K Embonor S.A. Shareholder related Chile CLP 378,718 - 118,314 - Foreign Alimentos de Soja S.A.U. Shareholder related Argentina ARS 277,708 - 402,581 - 77.526.480-2 Comercializadora Nova Verde Common shareholder Chile CLP 1,858,682 - 518,135 - Foreign Coca-Cola Panamá Shareholder related Panama USD - - - - Foreign Monster Energy Argentina S.A. Shareholder related Argentina PYG 2,365 - - - Foreign Monster Energy Company – EEUU Shareholder related Argentina PYG 58,668 - - - Foreign Sorocaba Refrescos S.A. Associate Brazil BRL - - - - Total 56,103,461 11,557,723 39,541,968 10,790,089 41 12.3 Transactions: Taxpayer ID Company Relationship Country Transaction description Currency Accumulated 12.31.2021 Accumulated 12.31.2020 CLP (000’s) CLP (000’s) 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Concentrate purchase CLP 174,892,744 139,193,479 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Advertising services purchase CLP 3,290,184 2,890,638 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Water source lease CLP 4,727,676 3,847,817 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of raw materials and others CLP 1,720,061 1,169,944 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Minimum dividend CLP 35,474 - 86.881.400-4 Envases CMF S.A. Associate Chile Bottle purchase CLP 17,713,063 12,210,449 86.881.400-4 Envases CMF S.A. Associate Chile Raw material purchase CLP 24,883,194 16,055,991 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of caps CLP 153,142 91,778 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of services and others CLP 1,325,941 520,221 86.881.400-4 Envases CMF S.A. Associate Chile Sale of services and others CLP 1,430 1,578 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of containers CLP 7,625,273 5,992,443 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 containers/raw materials CLP 11,939,711 6,344,834 93.281.000-K Coca-Cola Embonor S.A. Common shareholder Chile Sale of finished products CLP 59,018,653 44,982,749 93.281.000-K Coca-Cola Embonor S.A. Common shareholder Chile Sale of services and others CLP 359,739 447,092 93.281.000-K Coca-Cola Embonor S.A. Common shareholder Chile Sale of raw materials and materials CLP 523,958 197,288 96.891.720-K Embonor S.A. Shareholder related Chile Minimum dividend CLP 339,562 118,314 96.891.720-K Embonor S.A. Shareholder related Chile Sale of fixed asset CLP 357,000 - 96.891.720-K Embonor S.A. Shareholder related Chile Dividend distribution CLP 541,188 - 96.517.310-2 Embotelladora Iquique S.A. Shareholder related Chile Sale of finished products CLP 4,220,323 167,430 89.996.200-1 Envases del Pacífico S.A. Director related Chile Purchase of raw materials and materials CLP 265,503 427 94.627.000-8 Parque Arauco S.A Director related Chile Lease of space CLP 69,151 - Foreign Recofarma do Indústrias AmazonasLtda. Shareholder related Brazil Concentrate purchase BRL 69,785,833 71,959,416 Foreign Recofarma do Indústrias AmazonasLtda. Shareholder related Brazil Reimbursement and other purchases BRL 100,072 220,708 Foreign Serv. y Prod. para BebidasRefrescantes S.R.L. Shareholder related Argentina Concentrate purchase ARS 129,275,444 81,198,463 Foreign Serv. y Prod. para BebidasRefrescantes S.R.L. Shareholder related Argentina Advertising rights, prizes and others ARS 3,230,351 - Foreign Serv. y Prod. para BebidasRefrescantes S.R.L. Shareholder related Argentina Advertising participation ARS 5,201,881 6,395,881 Foreign KAIK Participações Associate Brazil Reimbursement and other purchases BRL 21,180 14,162 Foreign Leao Alimentos e Bebidas Ltda. Associate Brazil Product purchases BRL 293,677 - Foreign Sorocaba Refrescos S.A. Associate Brazil Product purchases BRL 2,667,326 3,671,472 89.862.200-2 Latam Airlines Group S.A. Director related Chile Sale of products CLP 269,688 - 89.862.200-2 Latam Airlines Group S.A. Director related Chile Product purchase CLP 18,695 85,140 76.572.588-7 Coca-Cola Del Valle New VenturesSA Associate Chile Sale of services and others CLP 442,566 397,659 76.572.588-7 Coca-Cola Del Valle New VenturesSA Associate Chile Purchase of services and others CLP 4,436,600 4,410,223 Foreign Alimentos de Soja S.A.U. Shareholder related Argentina Commission payments and services ARS 2,973,907 1,373,594 Foreign Alimentos de Soja S.A.U. Shareholder related Argentina Product purchases ARS 11,658 80,761 Foreign Trop Frutas do Brasil Ltda. Associate Brazil Product purchases BRL 2,736,529 77526480-2 Comercializadora Novaverde S.A. Common shareholder Chile Sale of raw materials CLP 6,210 10,914 77526480-2 Comercializadora Novaverde S.A. Common shareholder Chile Sale of finished products CLP 8,937,506 2,050,156 77526480-2 Comercializadora Novaverde S.A. Common shareholder Chile Sale of services and others CLP 11,183 459,707 77526480-2 Comercializadora Novaverde S.A. Common shareholder Chile Raw material purchase CLP 4,519,948 1,009,547 96.633.550-5 Sinea S.A. Director related Chile Raw material purchase CLP 2,294,594 - 97.036.000-K Banco Santander Chile Director/Manager/Executive Chile Purchase of services-bank expenses CLP 1,852,076 - 42 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 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Executive wages, salaries and benefits 7,253,863 7,464,071 Director allowances 1,512,500 1,479,420 Benefits accrued in the last five years and payments during the fiscal year 254,240 297,072 Benefit from termination of contracts - 115,341 Total 9,020,603 9,355,904 13 – CURRENT AND NON-CURRENT EMPLOYEE BENEFITS Employee benefits are detailed as follows: Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Accrued vacation 18,630,043 14,650,267 Participation in profits and bonuses 15,538,771 15,969,735 Severance indemnity 14,982,928 14,086,575 Total 49,151,742 44,706,577 CLP (000’s) CLP (000’s) Current 35,012,072 31,071,019 Non-current 14,139,670 13,635,558 Total 49,151,742 44,706,577 13.1 Severance indemnities The movements of employee benefits, valued pursuant to Note 2 are detailed as follows: Movements 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Opening balance 14,086,575 10,085,264 Service costs (8,917) 1,675,492 Interest costs 1,672,491 369,332 Actuarial variations 1,216,808 3,127,398 Benefits paid (1,984,029) (1,170,911)Total 14,982,928 14,086,575 43 13.1.1 Assumptions The actuarial assumptions used are detailed as follows: Assumptions 12.31.2021 12.31.2020 Discount rate 2.30% -0.05%Expected salary increase rate 2.0% 2.0%Turnover rate 7.68% 7.68%Mortality rate RV-2014 RV-2014 Retirement age of women 60 years 60 years Retirement age of men 65 years 65 years 13.2 Personnel expenses Personnel expenses included in the consolidated statement of income are as follows: Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Wages and salaries 225,883,645 187,600,163 Employee benefits 53,340,673 48,504,899 Severance benefits 4,163,608 3,238,966 Other personnel expenses 18,134,494 12,993,234 Total 301,522,420 252,337,262 14 – INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD 14.1 Description Investments in associates are accounted for using the equity method. Investments in associates are detailed as follows: Investment value Ownershipinterest TAXPAYER ID Name Country Functional currency 12.31.2021 12.31.2020 12.31.2021 12.31.2020 86.881.400-4 Envases CMF S.A. (1) Chile CLP 21,863,790 20,185,148 50.00% 50.00%Foreign Leão Alimentos e Bebidas Ltda. (2) Brazil BRL 11,359,597 10,628,035 10.26% 10.26%Foreign Kaik Participações Ltda. (2) Brazil BRL 1,107,007 979,978 11.32% 11.32%Foreign SRSA Participações Ltda. Brazil BRL 51,615 48,032 40.00% 40.00%Foreign Sorocaba Refrescos S.A. Brazil BRL 24,258,224 20,976,662 40.00% 40.00%Foreign Trop Frutas do Brasil Ltda. (2) Brazil BRL 2,192,920 4,695,228 7.52% 7.52%76.572.588.7 Coca-Cola del Valle New Ventures S.A. Chile CLP 30,656,041 30,443,271 35.00% 35.00%Total 91,489,193 87,956,354 (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. 44 Envases CMF S.A.Chilean entity whose corporate purpose is to manufacture and sell plastic material products and beverage bottling and packaging services. The business relationshipis to supply plastic bottles, preforms and caps to Coca-Cola bottlers in Chile. Leão Alimentos e Bebidas Ltda.Brazilian entity whose corporate purpose is to manufacture and commercialize food, beverages in general and beverage concentrates. Invest in other companies.The business relationship is to produce non-carbonated products for Coca-Cola bottlers in Brazil. Kaik Participações Ltda.Brazilian entity whose corporate purpose is to invest in other companies with its own resources. SRSA Participações Ltda.Brazilian entity whose corporate purpose is the purchase and sale of real estate investments and property management, supporting the business of Rio De JaneiroRefrescos Ltda. (Andina Brazil). Sorocaba Refrescos S.A.Brazilian entity whose corporate purpose is to manufacture and commercialize food, beverages in general and beverage concentrates, in addition to investing inother companies. It has commercial relationship with Rio De Janeiro Refrescos Ltda. (Andina Brazil). Trop Frutas do Brasil Ltda.Brazilian entity whose corporate purpose is to manufacture, commercialize and export natural fruit pulp and coconut water. The business relationship is to produceproducts for Coca-Cola bottlers in Brazil. Coca-Cola del Valle New Ventures S.A.Chilean entity whose corporate purpose is to manufacture, distribute and commercialize all kinds of juices, waters and beverages in general. The businessrelationship is to produce waters and juices for Coca-Cola bottlers in Chile. 45 14.2 Movements The movement of investments in other entities accounted for using the equity method is shown below: Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Opening balance 87,956,354 99,866,733 Dividends received (3,236,541) (1,215,126)Share in operating income 4,041,118 3,248,680 Amortization unrealized income in associates (435,884) (566,422)Other increase (decrease) in investments in associates+ 3,164,147 (13,377,511)Ending balance 91,489,194 87,956,354 *Mainly due to foreign exchange rates The main movements are explained below: ·Dividends declared in 2021 correspond to Sorocaba Refrescos S.A., Envases CMF S.A. and Coca-Cola del Valle New Ventures S.A..·In 2021 it was identified that for the brand Verde Campo (Trop Frutas do Brasil Ltda.) the recoverable value would be R$ 21.8 million, an amount below thebook value recorded, proportionally impacting the result of Andina Brazil according to its participation (for more information see Note 2.8).·In 2020 Leão Alimentos e Bebidas Ltda. recognized the value of a plant at its use value less selling costs, reducing the value previously recognized. Andinarecognized a proportional loss of Ch$2,931 million as income for the period 2020.·In the 2020 period Sorocaba Refrescos S.A., recognized a tax credit for excluding ICMS from the basis of calculation of PIS and COFINS. Andina recognizedas results for the 2020 period a proportional result of CLP 2,134 million. 14.3 Reconciliation of share of profit in investments in associates: Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Equity value on income of associates 4,041,118 3,248,680 Unrealized earnings from product inventory acquired from associates and not sold at the end of the period, which ispresented as a discount in the respective asset account (containers and / or inventory) (512,131) (528,122)Amortization goodwill in the sale of fixed assets of Envases CMF S.A. 42,633 85,266 Amortization goodwill preferred rights CCDV S.A. (478,518) (523,061)Income statement balance 3,093,102 2,228,763 46 14.4 Summary financial information of associates: At December 31, 2021: Envases CMF S.A. Sorocaba Refrescos S.A. Kaik Participações Ltda. SRSA Participações Ltda. Leão Alimentos e Bebidas Ltda. 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) Short term assets 72,400,404 19,468,334 - 20,648 68,192,154 16,765,435 29,227,758 Long term assets 42,875,230 92,639,217 9,779,486 294,662 50,034,496 33,021,014 75,706,352 Total assets 115,275,634 112,107,551 9,779,486 315,310 118,226,650 49,786,449 104,934,110 Short term liabilities 57,080,891 21,255,566 - 186,266 12,991,480 10,009,915 10,181,664 Long term liabilities 14,467,165 34,960,269 28 - 6,489,944 18,294,787 7,164,058 Total liabilities 71,548,056 56,215,834 28 186,266 19,481,425 28,304,702 17,345,722 Total Equity 43,727,578 55,891,716 9,779,458 129,043 98,745,226 21,481,747 87,588,388 Total revenue from ordinary activities 77,805,312 (25,164,499) 204,624 126,016 94,169,579 35,224,230 46,509,329 Earnings before taxes 7,347,219 4,518,371 204,624 126,016 2,876,850 (31,042,731) 2,306,620 Earnings after taxes 5,509,658 2,573,415 204,624 126,016 1,556,223 (37,324,877) 2,869,945 Other comprehensive income - 2,363,061 - - 49,784 30,547,925 - Total comprehensive income - 4,936,476 - - 1,606,007 (6,776,952) - Reporting date (See Note 2.3) 12.31.2021 11.30.2021 11.30.2021 11.30.2021 11.30.2021 11.30.2021 12.31.2021 47 At December 31, 2020: Envases CMF S.A. Sorocaba Refrescos S.A. Kaik Participações Ltda. SRSA Participações Ltda. Leão Alimentos e Bebidas Ltda. 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) Short term assets 31,354,324 17,959,344 - 20,314 70,192,521 12,293,489 37,284,398 Long term assets 43,735,099 73,675,946 8,657,291 268,126 73,918,788 63,719,245 68,450,919 Total assets 75,089,423 91,635,289 8,657,291 288,440 144,111,309 76,012,734 105,735,317 Short term liabilities 17,929,088 16,295,336 - 168,354 28,383,151 5,000,314 9,116,608 Long term liabilities 16,704,773 28,180,230 26 - 9,251,314 16,235,813 10,883,589 Total liabilities 34,633,861 44,475,566 26 168,354 37,634,465 21,236,127 20,000,197 Total Equity 40,455,561 47,159,723 8,657,265 120,086 106,476,844 54,776,607 85,735,120 Total revenue from ordinary activities 60,067,879 52,345,526 96,980 117,350 84,813,829 31,483,800 30,329,646 Earnings before taxes 5,587,691 4,028,010 96,980 117,350 (38,601,167) (1,391,494) (1,226,517)Earnings after taxes 4,717,515 3,004,352 96,980 117,350 (39,244,393) (890,021) (475,467)Other comprehensive income - (1,899,548) - - 472,160 - - Total comprehensive income - 1,104,804 - - (38,772,233) - - Reporting date (See Note 2.3) 12.31.2020 11.30.2020 11.30.2020 11.30.2020 11.30.2020 11.30.2020 12.31.2020 48 15 – INTANGIBLE ASSETS OTHER THAN GOODWILL Intangible assets other than goodwill are detailed as follows: December 31, 2021 December 31, 2020 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) 650,411,156 (3,896,827) 646,514,329 598,371,081 (2,005,344) 596,365,737 Software 44,084,900 (31,019,938) 13,064,962 35,030,003 (26,882,550) 8,147,453 Others 509,957 (457,705) 52,252 417,957 (416,982) 975 Total 695,006,013 (35,374,470) 659,631,543 633,819,041 (29,304,876) 604,514,165 (1)Correspond to the contractual rights to produce and distribute Coca-Cola products in certain parts of Argentina, Brazil, Chile and Paraguay. Distribution rightsresult from the valuation process at fair value of the assets and liabilities of the companies acquired in business combinations. Production and distributioncontracts are renewable for periods of 5 years with Coca-Cola. The nature of the business and renewals that Coca-Cola has permanently done on these rights,allow qualifying them as indefinite contracts. The distribution rights together with the assets that are part of the cash-generating units, are annually subjected to the impairment test, Such distribution rights havean indefinite useful life and are not subject to amortization, except for the Monster rights that are amortized in the term of the agreement which is 4 years. Distribution rights 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Chile (excluding Metropolitan Region, Rancagua and San Antonio) 303,973,971 303,702,092 Brazil (Rio de Janeiro, Espírito Santo, Ribeirão Preto and investments in Sorocaba and Leão Alimentos e Bebidas Ltda.)* 158,175,979 138,176,054 Paraguay 181,675,993 152,595,420 Argentina (North and South) 2,688,386 1,892,171 Total 646,514,329 596,365,737 * On September 21, 2021 Coca-Cola Andina together with Coca-Cola Femsa, acquired the Brazilian beer brand Therezópolis for BRL 70 million. Each bottlerbought 50% of the brand. This transaction is part of the company's long-term strategy to complement its beer portfolio in Brazil. The transaction was completed andapproved by CADE (Brazilian Administrative Council of Economic Defense). In September, 2021 Andina recorded an intangible asset under the Therezópolisbrand for BRL 35 million with an indefinite useful life. The movement and balances of identifiable intangible assets are detailed as follows: January 1 to December 31, 2021 January 1 to December 31, 2020 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 596,365,737 977 8,147,451 604,514,165 666,755,196 456,763 7,863,416 675,075,375 Additions 5,773,560 - 6,998,593 12,772,153 94,661 - 2,575,125 2,669,786 Amortization (152,644) - (2,637,823) (2,790,467) (1,573,878) - (2,088,612) (3,662,490)Other increases (decreases) (1) 44.527.676 51,275 556,741 45,135,692 (68,910,242) (455,786) (202,478) (69,568,506)Saldo final 646,514,329 52,252 13,064,962 659,631,543 596,365,737 977 8,147,451 604,514,165 (1)Mainly corresponds to restatement due to the effects of translation of distribution rights of foreign subsidiaries. 49 16 – GOODWILL Movement in Goodwill is detailed as follows: Cash Generating Unit 01.01.2021 Foreign currency translation differences where functional currency is different from presentation currency 12.31.2021 CLP (000’s) CLP (000’s) CLP (000’s) Chilean operation 8,503,023 - 8,503,023 Brazilian operation 56,001,413 5,850,036 61,851,449 Argentine operation 27,343,642 12,632,750 39,976,392 Paraguayan operation 6,477,515 1,234,521 7,712,036 Total 98,325,593 19,717,307 118,042,900 Cash Generating Unit 01.01.2020 Foreign currency translation differences where functional currency is different from presentation currency 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 17 – OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Liabilities are detailed as follows: Balance Current Non-current 12.31.2021 12.31.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Bank loans (Note 17.1.1 - 2) 26,617 799,072 4,000,000 4,000,000 Bonds payable, net1 (Note 17.2) 25,383,339 18,705,015 1,020,661,942 918,921,342 Bottle guaranty deposits 13,402,885 12,126,831 - - Derivative contract liabilities (Note 17.3) 758,663 1,217,322 - 51,568,854 Lease liabilities (Note 17.4.1 - 2) 8,191,535 5,718,484 16,387,030 15,339,373 Total 47,763,039 38,566,724 1,041,048,972 989,829,569 1 Amounts net of issuance expenses and discounts related to issuance. 50 The fair value of financial assets and liabilities is presented below: Current Book value12.31.2021 Fair value12.31.2021 Book value12.31.2020 Fair value12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Cash and cash equivalent (2) 304,312,020 304,312,020 309,530,699 309,530,699 Other financial assets (1) 961,705 961,705 - - Trade debtors and other accounts receivable (2) 265,490,626 265,490,626 194,021,253 194,021,253 Accounts receivable related companies (2) 9,419,050 9,419,050 11,875,408 11,875,408 Bank liabilities (2) 26,617 111,992 799,072 896,307 Bonds payable (2) 25,383,339 26,774,799 18,705,015 22,471,852 Bottle guaranty deposits (2) 13,402,885 13,402,885 12,126,831 12,126,831 Forward contracts liabilities (see Note 22) (1) 758,663 758,663 1,217,322 1,217,322 Leasing agreements (2) 8,191,535 8,191,535 5,542,356 5,542,356 Accounts payable (2) 327,710,552 327,710,552 230,438,133 230,438,133 Accounts payable related companies (2) 56,103,461 56,103,461 39,541,968 39,541,968 Non-current 12.31.2021 12.31.2021 12.31.2020 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Other financial assets (1) 281,337,127 281,337,127 150,983,295 150,983,295 Non-current accounts receivable (2) 126,464 126,464 73,862 73,862 Accounts receivable related companies (2) 98,940 98,940 138,346 138,346 Bank liabilities (2) 4,000,000 4,056,753 4,000,000 4,056,753 Bonds payable (2) 1,020,661,942 1,041,841,338 918,921,342 1,088,617,557 Leasing agreements (2) 16,387,030 16,387,030 15,339,373 15,339,373 Non-current accounts payable (2) 256,273 256,273 295,279 295,279 Derivative contracts liabilities (see Note 22) (1) - - 51,568,854 51,568,854 (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 Level 2of 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. Theseinstruments are revalued at amortized cost. 51 17.1.1 Bank liabilities, current Maturity Total Indebted entity Creditor entity Tipo de Nominal Up to 90 days to At At Taxpayer ID Name Country Taxpayer ID Name Country Currency Amortization Rate 90 days 1 year 12.31.2021 12.31.2020 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 96.705.990-0 Envases Central S.A. Chile 97.006.000-6 Banco BCI Chile CLP Semiannually 2.00% 26,617 - 26,617 33,111 Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco Galicia yBuenos Aires S.A. Argentina ARS Monthly 22.00% - - - 5,294 Total 26,617 799,072 17.1.2 Bank liabilities, non-current Maturity Indebted entity Creditor entity Type of Nominal 1 year up to More than 2 More than 3 More than 4 More than 5 At Taxpayer ID Name Country Taxpayer ID Name Country Currency Amortization Rate 2 years Up to 3 years Up to 4 years Up to 5 years years 12.31.2021 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) 96.705.990-0 EnvasesCentral S.A. Chile 97.006.000-6 Banco BCI Chile CLP 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 of Nominal 1 year up to more than 2 more than 3 more than 4 more than 5 At Taxpayer ID Name Country Taxpayer ID Name Country Currency Amortization Rate 2 years up to 3 years up to 4 years up to 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 CentralS.A. Chile 97.006.000-6 Banco BCI Chile CLP Semiannually 2.00% - - 4,000,000 - - 4,000,000 Total 4,000,000 52 17.1.4 Current and non-current bank obligations “Restrictions” Bank obligations are not subject to restrictions for the reported periods. 17.2 Bond obligations 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 structure and anannual interest rate of 3.950%. In parallel, derivatives (Cross Currency Swaps) covering 100% of the financial obligations of the bond that are denominated in USdollars have been contracted re-denominating that liability to UF. Current Non-current Total Composition of bonds payable 12.31.2021 12.31.2020 12.31.2021 12.31.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Bonds face value 1 26,103,215 19,347,033 1,027,864,462 925,968,913 1,053,967,677 945,315,946 17.2.1 Current and non-current balances Bonds payable correspond to bonds in UF issued by the parent company on the Chilean market and bonds in U.S. dollars issued by the Parent Company on theinternational market. A detail of these instruments is presented below: Current Non-current Series Current nominal amount Adjustmentunit Interest rate Final maturity Interest payment 12.31.2021 12.31.2020 12.31.2021 12.31.2020 Bonds CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CMF Registration 254 06.13.2001 B 1,389,336 UF 6.5% 12-01-2026 Semiannually 8,769,787 7,776,693 34,515,188 40,388,468 CMF Registration 641 08.23.2010 C 1,363,636 UF 4.0% 08-15-2031 Semiannually 4,853,856 647,672 38,035,317 43,605,495 CMF Registration 760 08.20.2013 D 4,000,000 UF 3.8% 08-16-2034 Semiannually 1,737,109 1,629,677 123,966,960 116,281,320 CMF Registration 760 04.02.2014 E 3,000,000 UF 3.75% 03-01-2035 Semiannually 1,151,467 1,083,063 92,975,229 87,210,999 CMF Registration 912 10.10.2018 F 5,700,000 UF 2.83% 09-25-2039 Semiannually 1,316,202 1,234,601 176,652,918 165,700,881 Bonds USA 2023 10.01.2013 - 365,000,000 US$ 5.0% 10-01-2023 Semiannually 3,853,898 3,243,709 308,311,850 259,496,750 Bonds USA 2050 01.01.2020 - 300,000,000 US$ 3.95% 01-21-2050 Semiannually 4,420,896 3,731,618 253,407,000 213,285,000 Total 26,103,215 19,347,033 1,027,864,462 925,968,913 1 Gross amounts do not consider discounts related to issuance. 53 17.2.2 Non-current maturities Year of maturity Total Non-current Series More than 1 up to 2 More than 2up to 3 More than 3up to 4 More than 5 12.31.2021 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CMF Registration 254 06.13.2001 B 9,098,047 9,689,420 10,319,232 5,408,489 34,515,188 CMF Registration 641 08.23.2010 C 4,226,146 4,226,147 4,226,146 25,356,878 38,035,317 CMF Registration 760 08.20.2013 D - - - 123,966,960 123,966,960 CMF Registration 760 04.02.2014 E - - - 92,975,229 92,975,229 CMF Registration 912 10.10.2018 F - - - 176,652,918 176,652,918 Bonds USA - - 308,311,850 - - 308,311,850 Bonds USA 2 - - - - 253,407,000 253,407,000 Total 13,324,193 322,227,417 14,545,378 677,767,474 1,027,864,462 17.2.3 Market 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. 17.2.4 Restrictions 17.2.4.1 Restrictions regarding bonds placed abroad. Obligations with bonds placed abroad are not affected by financial restrictions for the periods reported. 17.2.4.2 Restrictions regarding bonds placed in the local market. The following financial information was used for calculating restrictions: 12.31.2021 CLP (000’s) Total Equity 1,101,413,559 Net financial debt 307,692,116 Unencumbered assets 2,638,120,437 Total unsecured liabilities 1,562,394,258 EBITDA LTM 382,001,096 Net financial expenses LTM 48,510,695 54 Restrictions on the issuance of bonds for a fixed amount registered under number 254, series B1 and B2. 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) theaddition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent they correspond toasset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities). Consolidated Equity will beregarded as total equity including non-controlling interest. As of the date of these financial statements, this ratio is 0.28 times. ·Maintain, and in no manner lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” (RegiónMetropolitana) as a territory in Chile in which we have been authorized by The Coca-Cola Company for the development, production, sale and distribution ofproducts and brands of the licensor, in accordance to the respective bottler or license agreement, renewable from time to time. ·Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of this date is franchised by TCCC to the Company for thedevelopment, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of theIssuer'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 real guarantees ongoods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to coverexchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’sConsolidated Statement of Financial Position. Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarilyand conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financialliabilities and under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position. As of the date of these financial statements, this ratio is 1.69 times. 55 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 the issuer(equity attributable to controlling owners plus non-controlling interest). On its part, net financial debt will be the difference between the Issuer's financial debtand cash. As of the date of these financial statements, net financial debt level was 0.28 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 are free ofany pledge, mortgage or other liens constituted in favor of third parties, less "Other Current Financial Assets" and "Other Non-Current Financial Assets" of theIssuer’s Financial 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). Unsecured total liabilities correspond to liabilities from Total Current Liabilities and Total Non-Current Liabilities of Issuer’s Financial Statement which do notbenefit from preferences or privileges, less "Other Current Financial Assets" and "Other Non-Current Financial Assets" of the Issuer’s Financial Statements (tothe extent they correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities). As of the date of these financial statements, this ratio was 1.69 times. ·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 the differencebetween the absolute value of interest expense associated with the issuer's financial debt account accounted for under "Financial Costs"; and interest incomeassociated with the issuer's cash accounted for under the Financial Income account. However, this restriction shall be deemed to have been breached where thementioned level of net financial coverage is lower than the level previously indicated during two consecutive quarters. As of the date of these financial statements, Net Financial Coverage was 7.87 times. Restrictions to bond lines registered in the Securities Registrar under number 760, series D and 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) theaddition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent they correspond toasset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities). Consolidated Equity will beregarded as total equity including non-controlling interest. As of the date of these financial statements, Indebtedness Level is 0.28 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 unsecured consolidatedliabilities payable. Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees ongoods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to coverexchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’sConsolidated Statement of Financial Position. The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge,mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest raterisks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Financial Statements.Therefore, Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lienvoluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate riskson financial liabilities and under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of FinancialPosition. 56 As of the date of these financial statements, this ratio was 1.69 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 from time totime. Losing said territory, means the non-renewal, early termination or cancellation of this license agreement by TCCC, for the geographical area today called"Metropolitan Region". This reason shall not apply if, as a result of the loss, sale, transfer or disposition, of that licensed territory is purchased or acquired by asubsidiary or an entity that consolidates in terms of accounting with the Issuer. ·Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of these instruments is franchised byTCCC to the Issuer for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account formore than 40% of the Issuer's Adjusted Consolidated Operating Cash Flow of the audited period immediately before the moment of loss, sale, assignment ortransfer. For these purposes, the term "Adjusted Consolidated Operating Cash Flow" shall mean the addition of the following accounting accounts of the Issuer'sConsolidated 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 that are accounted for using the equity method"; plus (v) "Depreciation"; plus(vi) "Intangibles Amortization". Restrictions to bond lines registered in the Securities Registrar under number 912, series F. ·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) theaddition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent they correspond toasset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities). Consolidated Equity will beregarded as total equity including non-controlling interest. As of the date of these financial statements, this ratio was 0.28 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 unsecured consolidatedliabilities payable. Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured byreal guarantees 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-current FinancialAssets" of the Issuer’s Consolidated Statement of Financial Position. The following will be considered in determining Consolidated Assets: assets free of anypledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances ofderivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Othernon-current Financial Assets" of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated Assets free of any pledge, mortgage or other lien willonly be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances ofderivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Othernon-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position. As of the date of these financial statements, this ratio was 1.69 times. 57 ·Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of local bonds Series C, D and E 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 moment of loss,sale, assignment or transfer. For these purposes, the term "Adjusted Consolidated Operating Cash Flow" shall mean the addition of the following accountingaccounts of the Issuer's Consolidated Statement of Financial Position: (i) "Gross Profit" which includes regular activities and cost of sales; less (ii) "DistributionCosts"; less (iii) "Administrative Expenses"; plus (iv) "Participation in profits (losses) of associates that are accounted for using the equity method"; plus (v)"Depreciation"; plus (vi) "Intangibles Amortization". As of December 31, 2021 and 2020, the Company complies with all financial collaterals. It should be noted that on November 11, 2021, bondholders' meetings were held for the series C, D, E and F bonds issued in the local market under the linesregistered in the Securities Registry of the CMF under No. 641 (Series C), No. 760 (Series D and E) and No. 912 (Series F), and for the series B bondscorresponding to the fixed amount issue registered in the Securities Registry of the CMF under No. 254. As a result of the aforementioned bondholders' meetings, by means of public deeds dated November 19, 2021 granted at the Santiago Notary Office of Mr. IvánTorrealba Acevedo, the issuance contracts of the aforementioned bond issues were amended. Additionally, by means of public deeds granted on the same date andat the same Notary's office, the issuance contracts of the bond lines registered in the Securities Registry of the CMF under No. 911, No. 971 and No. 972 were alsoamended, in respect of which there were no bonds outstanding at the date of said deeds. In this regard, amendments were made to the financial indebtednesscovenant that existed in the aforementioned issuance contracts, to be replaced by a new indebtedness level obligation defined as follows: Indebtedness Level: To maintain an Indebtedness Level, measured and calculated quarterly on the Issuer's Consolidated Financial Statements, presented in the formand terms determined by the Financial Market Commission, no greater than three point five times. The following terms shall be understood as: - "Indebtedness Level" shall mean the ratio between /a/ the average of the Consolidated Net Financial Liabilities, calculated on the last four "ConsolidatedFinancial Statements of Financial Position" contained in the Issuer's Consolidated Financial Statements submitted by the Issuer as of the calculation date to theFinancial Market Commission; and /b/ the accumulated EBITDA in the twelve consecutive month period ending at the close of the last of the "ConsolidatedFinancial Statements of Results by Function" contained in the Consolidated Financial Statements that the Issuer has filed as of the calculation date with theFinancial Market Commission. - "Consolidated Net Financial Liabilities" the result of the following operations on the accounting items of the "Consolidated Financial Statements of FinancialPosition" contained in the Issuer's Consolidated Financial Statements indicated below: /i/ "Other Financial Liabilities, Current", which include short-termobligations with banks and financial institutions, obligations with the public at face rate, issuance expenses and discounts associated with the placement andother minor items that according to IFRS regulations must be included in this category; plus /ii/ "Other Non-Current Financial Liabilities", which include long-term obligations with banks and financial institutions, obligations with the public at face rate, issuance costs and discounts associated with the placement andother minor items that according to IFRS standards should be included in this category; minus /iii/ the sum of "Cash and Cash Equivalents"; plus "OtherFinancial Assets, Current"; plus "Other Financial Assets, Non-Current" /to the extent that they correspond to asset balances for derivative financial instruments,taken to hedge exchange rate and/or interest rate risk of financial liabilities/; - EBITDA" the aggregate of the following accounts of the "Consolidated Financial Statements of Income by Function" contained in the Issuer's ConsolidatedFinancial Statements: "Revenues from Ordinary Activities", "Cost of Sales", "Distribution Costs", "Administrative Expenses" and "Other Expenses, byfunction", discounting the value of "Depreciation" and "Amortization for the Year" presented in the Notes to the Issuer's Consolidated Financial Statements. It should be noted that the modification of the financial covenant was ratified by Chile’s Financial Market Commission (CMF) on February 3, 2022 for bond linesNo. 254, No. 641, on February 7, 2022 for bond line No. 760 and on February 11 for bond line No. 912. 58 The calculation of the index at December 31, 2021 was 0.89 times, complying with the limit of not exceeding 3.50 times. 17.3 Derivative contract obligations Please see details in Note 22. 59 17.4.1 Current liabilities for leasing agreements Maturity Total Indebted entity Creditor entity Amortization Nominal Up to 90 days upto Al al Name Country Taxpayer ID Name Country Currency Type Rate 90 days 1 year 12.31.2021 12.31.2020 M$ M$ M$ M$ Rio de JaneiroRefrescos Ltda. Brazil Foreign Cogeração - LightESCO Brazil BRL Monthly 12.28% 208,428 664,893 873,321 698,526 Rio de JaneiroRefrescos Ltda. Brazil Foreign Tetra Pack Brazil BRL Monthly 7.39% 46,545 133,591 180,136 208,738 Rio de JaneiroRefrescos Ltda. Brazil Foreign Real estate Brazil BRL Monthly 8.10% 86,365 181,387 267,752 183,694 Rio de JaneiroRefrescos Ltda. Brazil Foreign Leão Brazil BRL Monthly 3.50% 72,497 216,912 289,409 269,310 Embotelladora delAtlántico S.A. Argentina Foreign Tetra Pak SRL Argentina USD Monthly 12.00% 37,087 111,260 148,347 83,469 Embotelladora delAtlántico S.A. Argentina Foreign Banco Comafi Argentina USD Monthly 12.00% 24,779 - 24,779 124,927 Embotelladora delAtlántico S.A. Argentina Foreign Real estate Argentina ARS Monthly 50.00% 94,094 392,699 486,793 213,905 Embotelladora delAtlántico S.A. Argentina Foreign Systems Argentina USD Monthly 12.00% 34,526 103,577 138,103 82,227 VJ S.A. Chile 93.899.000-k De Lage LandenChile S.A Chile USD Linear 12.16% 137,601 421,271 558,872 - Vital Aguas S.A Chile 76.389.720-6 Coca-Cola delValle NewVentures S.A Chile CLP Linear 7.50% 298,788 808,351 1,107,139 1,171,464 Envases CentralS.A Chile 96.705.990-0 Coca-Cola delValle NewVentures S.A Chile CLP Linear 5.56% 584,259 1,780,718 2,364,977 2,290,464 ParaguayRefrescos SA Paraguay 80.003.400-7 Tetra Pack Ltda.Suc. Py Paraguay PGY Monthly 1.00% 66,479 118,866 185,345 215,632 Transportes PolarS.A. Chile 96.928.520-7 Cons. Inmob. eInversionesLimitada Chile UF Monthly 2.89% 25,212 76,738 101,950 92,778 EmbotelladoraAndina S.A Chile 91.144.000-8 Central deRestauranteAramark Ltda. Chile CLP Monthly 1.30% 13,997 - 13,997 83,350 TransportesAndina RefrescosLtda Chile 78.861.790-9 ArrendamientoDe MaquinariaSPA Chile UF Monthly 1.00% 68,732 205,331 274,063 - TransportesAndina RefrescosLtda Chile 78.861.790-9 ComercializadoraNovaverdeLimitada Chile UF Monthly 0.08% 94,083 282,363 376,446 - TransportesAndina RefrescosLtda Chile 78.861.790-9 JungheinrichRentalift SPA Chile UF Monthly 0.24% 197,874 602,232 800,106 - Total 8,191,535 5,718,484 The Company maintains leases on forklifts, vehicles, real estate and machinery. These leases have an average lifespan of between one and eight years withoutincluding a renewal option in the contracts. 60 17.4.2 Non-current liabilities for leasing agreements Maturity Indebted entity Creditor entity Amortization Nominal 1 year upto 2 years upto 3 years upto 4 years upto More than atName Country Taxpayer ID Name Country Currency Type Rate 2 years 3 years 4 years 5 years 5 years 12.31.2021 CLP(000’s) CLP(000’s) CLP(000’s) CLP(000’s) CLP(000’s) CLP(000’s)Rio de JaneiroRefrescos Ltda. Brasil Foreign Cogeração -Light ESCO Brazil BRL Monthly 12.28% 986,852 1,115,143 1,260,112 1,423,926 3,917,596 8,703,629Rio de JaneiroRefrescos Ltda. Brasil Foreign Tetra Pack| Brazil BRL Monthly 7.39% 64,906 69,872 75,217 80,971 256,055 547,021Rio de JaneiroRefrescos Ltda. Brasil Foreign Real estate Brazil BRL Monthly 8.10% 115,321 28,670 - - - 143,991Rio de JaneiroRefrescos Ltda. Brasil Foreign Leao Alimentos eBebidas Ltda. Brazil BRL Monthly 3.50% 276,248 269,864 249,693 29,102 27,331 852,238Embotelladoradel AtlánticoS.A. Argentina Foreign Banco Comafi Argentina USD Monthly 12.00% - 86,276 - - - 86,276Embotelladoradel AtlánticoS.A. Argentina Foreign Tetra Pak SRL Argentina USD Monthly 12.00% - 296,693 - 234,882 - 531,575Embotelladoradel AtlánticoS.A. Argentina Foreign Real estate Argentina ARS Monthly 50.00% - 86,139 - - - 86,139VJ S.A. Chile Foreign De Lage LandenChile S.A Chile USD Monthly 12.16% 1,343,457 - - - - 1,343,457EnvasesCentral S.A Chile 76.572.588-7 Coca-Cola delValle NewVentures S.A Chile CLP Monthly 5.56% 602,887 - - - - 602,887TransportesAndinaRefrescos Ltda Chile 85.275.700-0 ArrendamientoDe MaquinariaSPA Chile UF Monthly 1.00% - 541,264 - 44,696 - 585,960TransportesPolar S.A. Chile 76.413.243-2 Cons. Inmob. eInversionesLimitada Chile UF Monthly 2.89% - 212,945 - 64,460 - 277,405TransportesAndinaRefrescos Ltda Chile 77.526.480-2 ComercializadoraNovaverdeLimitada Chile UF Monthly 0.08% - 156,942 - - - 156,942TransportesAndinaRefrescos Ltda Chile 78.861.790-9 JungheinrichRentalift SPA Chile UF Monthly 0.24% - 1,670,939 - 798,571 - 2,469,510 Total 16,387,030 17.4.3 Non-current liabilities for leasing agreements (previous year) Maturity Indebted entity Creditor entity Amortization Nominal 1 year upto 2 years upto 3 years upto 4 years upto 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 JaneiroRefrescos Ltda. Brasil 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 JaneiroRefrescos Ltda. Brasil Foreign Tetra Pack| Brazil BRL Monthly 7.39% 95,856 - - - - 95,856 Rio de JaneiroRefrescos Ltda. Brasil Foreign Real estate Brazil BRL Monthly 8.20% 72,906 32,980 23,547 - - 129,433 Rio de JaneiroRefrescos Ltda. Brasil Foreign LeaoAlimentos eBebidas Ltda. Brazil BRL Monthly 6.56% 261,577 249,681 243,911 225,680 51,007 1,031,856 Embotelladoradel AtlánticoS.A. Argentina Foreign BancoComafi Argentina USD Monthly 12.00% - 20,867 - - - 20,867 Embotelladoradel AtlánticoS.A. Argentina Foreign Tetra PakSRL Argentina USD Monthly 12.00% - 249,854 - 249,854 72,874 572,582 Embotelladoradel AtlánticoS.A. Argentina Foreign Real estate Argentina ARS Monthly 50.00% - 128,930 - - - 128,930 Embotelladoradel AtlánticoS.A. Argentina Foreign Real estate Argentina ARS Monthly 50.00% - 95,931 - - - 95,931 Vital AguasS.A Chile 76.572.588-7 Coca-Coladel ValleNewVentures S.A Chile CLP Monthly 8.20% 1,107,140 - - - - 1,107,140 EnvasesCentral S.A Chile 76.572.588-7 Coca-Coladel ValleNewVentures S.A Chile CLP Monthly 9.00% 2,967,864 - - - - 2,967,864 ParaguayRefrescos SA Paraguay 80.003.400-7 Tetra PackLtda. Suc. Py Paraguay Guaraní Monthly 1.00% - 163,635 - - - 163,635 TransportesPolar S.A. Chile 76.413.243-2 Cons. Inmob.e InversionesLimitada Chile UF Monthly 2.89% - 193,789 - 161,551 - 355,340 EmbotelladoraAndina S.A Chile 76.178.360-2 Central deRestauranteAramarkLtda. Chile CLP Monthly 1.30% - 13,997 - - - 13,997 Total 15,339,373 Leasing agreement obligations are not subject to financial restrictions for the reported periods. 61 18 – TRADE AND OTHER ACCOUNTS PAYABLE Trade and other current accounts payable are detailed as follows: 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Classification Current 327,409,207 230,445,809 Non-current 256,273 295,279 Total 327,665,480 230,741,088 Item CLP (000’s) CLP (000’s) Trade accounts payable 248,163,428 163,361,078 Withholding tax 54,812,365 48,566,443 Others 24,689,687 18,813,567 Total 327,665,480 230,741,088 19 – OTHER PROVISIONS, CURRENT AND NON-CURRENT 19.1 Balances The composition of provisions is as follows: Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Litigation (1) 57,412,406 50,070,273 Total 57,412,406 50,070,273 Current 1,528,879 1,335,337 Non-current 55,883,527 48,734,936 Total 57,412,406 50,070,273 (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) 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Tax contingencies 28,673,105 25,543,101 Labor contingencies 9,502,630 8,688,551 Civil contingencies 19,236,671 15,838,621 Total 57,412,406 50,070,273 62 19.2 Movements The movement of principal provisions over litigation is detailed as follows: Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Opening balance at January 1st 50,070,273 69,107,550 Additional provisions 948,632 172,801 Increase (decrease) in existing provisions 5,903,714 4,624,789 Used provision (payments made charged to the provision) (3,717,687) (5,799,209)Reversal of unused provision (788,215) - Increase (decrease) due to foreign exchange rate differences 4,995,689 (18,035,658)Total 57,412,406 50,070,273 20 – OTHER NON-FINANCIAL LIABILITIES Other current and non-current liabilities at each reporting period end are detailed as follows: Current Non-current Description 12.31.2021 12.31.2020 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Dividends payable 29,020,899 25,999,055 - - Others (1) 2,216,935 2,267,675 23,784,817 21,472,048 Total 31,237,834 28,266,730 23,784,817 21,472,048 (1)Other non-current corresponds mainly to accounts payable to former shareholders of Companhia de Bebidas Ipiranga (“CBI”). See Note 6 for furtherinformation. 21 – EQUITY 21.1 Number of shares: Number of subscribed, paid-in andvoting shares Series 2021 2020 A 473,289,301 473,289,301 B 473,281,303 473,281,303 21.1.1 Capital: Paid-in and subscribed capital Series 2021 2020 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 63 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 Under Chilean law, we must distribute cash dividends equivalent to at least 30% of our annual net profit, barring a unanimous vote by shareholders to the contrary.If there is no net profit in a given year, the Company shall not be legally obligated to distribute dividends from accumulated earnings, unless approved by theGeneral Shareholders Meeting. At the General Shareholders’ Meeting held in April 2021, shareholders agreed to pay out of the 2020 earnings a final dividend andan additional dividend to the 30% required by Chille’s Law on Corporations, which were paid in May 2021 and August 2021, respectively. In accordance with the provisions of Circular No. 1.945 of the Commission for the Financial Market (CMF) dated September 29, 2009, the Company’s Board ofDirectors decided to maintain the initial adjustments of adopting IFRS as cumulative gains whose distribution is conditional on their future realization. The dividends declared and/or paid per share are presented below: Periods approved - paid Dividend type Profits imputable to dividends CLP Series A CLP Series B 02-25-2020 05-29-2020 Final 2019 Earnings 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 Earnings 26.60 28.60 12-22-2020 01-29-2021 Interim 2020 Earnings 26.00 28.60 04-15-2021 05-28-2021 Final 2020 Earnings 26.00 28.60 04-15-2021 08-27-2021 Additional 2020 Earnings 26.00 28.60 09-28-2021 10-29-2021 Interim 2021 Earnings 29.00 31.90 12-21-2021 01-28-2022 Interim 2021 Earnings 29.00 31.90 21.3Other reserves The balance of other reserves includes the following: Concept 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Polar acquisition 421,701,520 421,701,520 Foreign currency translation reserves (441,580,088) (517,496,486)Cash flow hedge reserve 50,603,698 (24,719,533)Reserve for employee benefit actuarial gains or losses (4,885,926) (4,663,193)Legal and statutory reserves 5,435,538 5,435,538 Other 6,014,568 6,014,568 Total 37,289,310 (113,727,586) 21.3.1 Polar acquisition This amount corresponds to the difference between the valuation at fair value of the issuance of shares of Embotelladora Andina S.A. and the book value of the paidcapital of Embotelladoras Coca-Cola Polar S.A., which was finally the value of the capital increase notarized in legal terms. 64 21.3.2 Cash flow hedge reserve They arise from the fair value of the existing derivative contracts that have been qualified for hedge accounting at the end of each financial period. When contractsare expired, these reserves are adjusted and recognized in the income statement in the corresponding period (see Note 22). 21.3.3 Reserve for employee benefit actuarial gains or losses Corresponds to the restatement effect of employee benefits actuarial losses that according to IAS 19 amendments must be carried to other comprehensive income. 21.3.4 Legal and statutory reserves In accordance with Official Circular N° 456 issued by the Chilean Financial Market Commission (CMF), the legally required price-level restatement of paid-incapital for 2009 is presented as part of other equity reserves and is accounted for as a capitalization from Other Reserves with no impact on net income or retainedearnings under IFRS. This amount totaled CLP 5,435,538 thousand as of December 31, 2009. 21.3.5 Foreign currency translation reserves This corresponds to the conversion of the financial statements of foreign subsidiaries whose functional currency is different from the presentation currency of theConsolidated Financial Statements. Additionally, exchange differences between accounts receivable kept by the companies in Chile with foreign subsidiaries arepresented in this account, which have been treated as investment equivalents accounted for using the equity method, Translation reserves are detailed as follows: Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Brazil (167,447,389) (203,657,392)Argentina (294,696,228) (291,332,402)Paraguay 20,563,529 (22,506,692)Total (441,580,088) (517,496,486) The movement of this reserve for the periods ended on the dates indicated below, is detailed as follows: Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Brazil 36,210,003 (104,863,274)Argentina (3,363,826) (44,916,480)Paraguay 43,070,221 (28,640,392)Total 75,916,398 (178,420,146) 65 21.4 Non-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 Description Ownership % Equity Income December December December December 2021 2020 2021 2020 2021 2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Embotelladora del Atlántico S.A. 0.0171 0.0171 33,794 23,662 3,463 2,312 Andina Empaques Argentina S.A. 0.0209 0.0209 3,761 2,349 326 244 Paraguay Refrescos S.A. 2.1697 2.1697 6,331,726 5,037,332 885,010 791,576 Vital S.A. 35.0000 35.0000 8,056,551 8,176,999 499,923 285,269 Vital Aguas S.A. 33.5000 33.5000 2,041,837 1,912,023 130,522 109,110 Envases Central S.A. 40.7300 40.7300 5,738,008 5,227,112 750,192 (70,996)Re-Ciclar S.A.(*) 40.0000 - 3,064,078 - 64,082 - Total 25,269,755 20,379,477 2,333,518 1,117,515 (*) Re-Ciclar is a company, whose purpose is to produce recycled resin for the Coca-Cola system and third parties. Non-controlling interest reaches 40.0%. 21.5 Earnings per share The basic earnings per share presented in the statement of comprehensive income is calculated as the quotient between income for the period and the 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 12.31.2021 SERIES A SERIES B TOTAL Earnings attributable to shareholders (CLP 000’s) 73,666,409 81,031,741 154,698,150 Average weighted number of shares 473,289,301 473,281,303 946,570,604 Earnings per basic and diluted share (CLP) 155.65, 171.21, 163.43, 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 (CLP) 122.75 135.02 128.89 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. 66 As of the date of these financial statements, the Company holds the following derivative instruments: 22.1 Accounting recognition of cross currency swaps Cross Currency Swaps, associated with local Bonds (Chile) At the closing date of these financial statements, the Company maintains derivative contracts to secure some of its bond debt issued in Unidades de Fomentototaling UF 9,752,973 in 2021 (UF 10,148,159 in 2020), to convert those obligations to CLP. These contracts were valued at fair value, yielding a net asset at the closing date of the financial statements of CLP 34,239,224 thousand (CLP 6,229,116 thousandin 2020) which is presented in Other non-current financial assets. Maturity dates of derivative contracts are distributed throughout 2026, 2031, 2034 and 2035. Cross Currency Swaps, associated with international Bonds (U.S.A.) At the closing date of these financial statements, the Company maintains derivative contracts to secure US Dollar public bond obligations of USD 360 million duein 2023, to convert such obligations into Brazilian Real. In addition, derivative contracts amounting to USD 300 million are held to convert such obligation intoUnidades de Fomento (UF - CLP re-adjustable by the Consumer Price Index) due in 2050. The valuation of the first contract at its fair values generates an asset ofCLP 192,844,908 thousand as of the closing date of these financial statements(CLP 144,684,179 thousand as of December 31, 2020), while the valuation of thesecond contract at its fair value generates an asset of CLP 54,252,995 thousand at the closing date of these financial statements (CLP 51,568,854 thousand liabilityat December 31, 2020). The amount of exchange differences recognized in the statement of income related to financial liabilities in U.S. dollars are absorbed by the amounts recognizedunder comprehensive income. 22.2 Forward currency transactions expected to be very likely During 2021 and 2020, Embotelladora Andina entered into forward contracts to ensure the exchange rate on future commodity purchasing needs for its 4operations, i.e., closing forward instruments in USD/ARS, USD/BRL, USD/CLP and USD/GYP. As of December 31, 2021, outstanding contracts amount to USD70.2 million (USD 54.0 million as of December 31, 2020). 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 282,298,832 thousand (CLP 150,983,295 thousand as ofDecember 31, 2020) and held liabilities for derivative contracts for CLP 758,663 thousand (CLP 52.786.176 thousand as of December 31, 2020). Those contractscovering existing items have been classified in the same category of hedged, the net amount of derivative contracts by concepts covering forecasted items have beenclassified in current and non-current financial assets and financial liabilities. All the derivative contracts are carried at fair value in the consolidated statement offinancial position. 67 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 (thatis, derived from prices)Level 3:Inputs for assets and liabilities that are not based on observable market data. During the reporting period, there were no transfers of items between fair value measurement categories; all of which were valued during the period using level 2. Fair Value Measurement at December 31, 2021 Quoted prices in active markets for identical assets or liabilities Observable market 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 and non-current assets Other current financial assets - 961,705 - 961,705 Other non-current financial assets - 281,337,127 - 281,337,127 Total assets - 282,298,832 - 282,298,832 Liabilities Current and non-current liabilities Other current financial liabilities - 758,663 - 758,663 Other non-current financial liabilities - - - - Total liabilities - 758,663 - 758,663 Fair Value Measurement at December 31, 2020 Quoted prices in active markets for identical assets or liabilities Observable market 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 - - - - 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 68 23 – LITIGATION AND CONTINGENCIES 23.1 Lawsuits and other legal actions: In the opinion of the Company's legal counsel, the Parent Company and its subsidiaries do not face legal or extrajudicial contingencies that might result in materialor significant losses or gains, except for the following: 1)Embotelladora del Atlántico S.A. and Andina Empaques Argentina S.A. face labor, tax, civil and trade lawsuits. Accounting provisions have been made forthe contingency of a probable loss because of these lawsuits, totaling CLP 1,917,657 thousand (CLP 778,065 thousand in 2020). Management considers itunlikely that non-provisioned contingencies will affect the Company's income and equity, based on the opinion of its legal counsel. Additionally,Embotelladora del Atlántico S.A. maintains time deposits for an amount of CLP 276,971 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 53,965,870 thousand (CLP 47,945,921 thousand in 2020). Management considers it unlikely that non-provisionedcontingencies will affect the Company's income and equity, based on the opinion of its legal counsel. As it is customary in Brazil, Rio de Janeiro RefrescosLtda. maintains Deposit in courts and assets given in pledge to secure the compliance of certain processes, irrespective of whether these have been classifiedas a possible, probable or remote. The amounts deposited or pledged as legal guarantees As of December 31, 2021, amounted to CLP 23,502,962 thousand(CLP 21,054,433 thousand as of December 31, 2020). 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 1,530,835,558, with different Financial Institutions and InsuranceCompanies in Brazil, these entities receive an annual commission fee of 0.61%. 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 Janeiro RefrescosLtda. promises to reimburse to the financial institutions and Insurance Companies any amounts disbursed by them to the Brazilian government. Main contingencies faced by Rio de Janeiro Refrescos are as follows: a)Tax contingencies resulting from credits on tax on industrialized products (IPI). Rio de Janeiro Refrescos is a party to a series of proceedings under way, in which the Brazilian federal tax authorities demand payment of value-addedtax on industrialized products (Imposto sobre Produtos Industrializados, or IPI) totaling BRL 2,774,605,147 as of the date of these financial statements. 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 credits inconnection with purchases of certain exempt raw materials from suppliers located in the Manaus free trade zone. Based on the opinion of its advisers, and legal outcomes to date, Management estimates that these procedures do not represent probable losses and hasnot recorded a provision on these matters. 69 Notwithstanding the above, the IFRS related to business combination in terms of distribution of the purchase price establish that contingencies must bemeasured 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 are contingencieslisted only as possible for BRL 708,345,690 (amount includes adjustments for current lawsuits) a start provision has been generated in the accounting ofthe business combination for BRL 141,639,007. 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 415,170,501 being assessed by external attorneys as a remote loss,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 a possibleloss. The value of this process is BRL 488,331,303, as of the date of these financial statements. 3)Embotelladora Andina S.A. and its Chilean subsidiaries face labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency ofa probable loss because of these lawsuits, totaling CLP 1,487,509 thousand (CLP 1,300,587 thousand as of December 31, 2020). Management considers it isunlikely that non-provisioned contingencies will affect income and equity of the Company, in the opinion of its legal advisors. 4)Paraguay Refrescos S.A. faces tax, trade, labor and other lawsuits. Accounting provisions have been made for the contingency of any loss because of theselawsuits amounting to CLP 41.370 thousand (CLP 34,747 thousand as of December 31, 2020). Management considers it is unlikely that non-provisionedcontingencies will affect income and equity of the Company, in the opinion of its legal advisors. 70 23.2 Direct guarantees and restricted assets: Guarantees and restricted assets are detailed as follows: Guarantees that commit assets recognized in the financial statements: Committed assets Accounting value Guaranty creditor Debtor name Relationship Guaranty Type 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Transportes San Martin Embotelladora Andina S.A. Parent company Cash Trade Accounts and Other AccountsReceivable - 2,907 Administradora Plaza VespucioS.A. Embotelladora Andina S.A. Parent company Cash Trade Accounts and Other AccountsReceivable 86,416 - Cooperativa Agricola PisqueraElqui Limitada Embotelladora Andina S.A. Parent company Cash Otros activos financieros no corrientes 1,216,865 1,216,865 Mall Plaza Embotelladora Andina S.A. Parent company Cash Trade Accounts and Other AccountsReceivable 290,890 - Serv. Nacional Aduanas Embotelladora Andina S.A. Parent company Cash Trade Accounts and Other AccountsReceivable 18,583 - Metro S.A. Embotelladora Andina S.A. Parent company Cash Trade Accounts and Other AccountsReceivable 24,335 - Parque Arauco S.A. Embotelladora Andina S.A. Parent company Cash Trade Accounts and Other AccountsReceivable 126,136 - Several Retail Vending Subsidiary Cash Trade Accounts and Other AccountsReceivable 63,792 - Several Retail Transportes Refrescos Subsidiary Cash Trade Accounts and Other AccountsReceivable 628 - Several Retail Transportes Polar Subsidiary Cash Trade Accounts and Other AccountsReceivable 69,745 15,751 Labor claims Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current non-financial assets 6,057,282 5,329,947 Civil and tax claims Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current non-financial assets 6,562,747 5,882,379 Governmental entities Rio de Janeiro Refrescos Ltda. Subsidiary Plant and Equipment Property, Plant and Equipment 10,882,933 9,842,108 Distribuidora Baraldo S.H. Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 164 169 Acuña Gomez Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 247 253 Nicanor López Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 176 181 Labarda Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 3 3 Municipalidad Bariloche Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 2,230 - Municipalidad San Antonio Oeste Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 18,153 18,650 Municipalidad Carlos Casares Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 734 754 Municipalidad Chivilcoy Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 113,530 116,641 Others Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 35 36 Granada Maximiliano Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 1,480 1,521 Cicsa Embotelladora del Atlántico S.A. Subsidiary Cash deposit Other current non-financial assets - 2,114 Several stores Embotelladora del Atlántico S.A. Subsidiary Cash deposit Other current non-financial assets - 13,140 Aduana de EZEIZA Embotelladora del Atlántico S.A. Subsidiary Cash deposit Other current non-financial assets - 286 Municipalidad de Junin Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 237 243 Almada Jorge Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 2,009 2,064 Mirgoni Marano Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 50 51 Farias Matias Luis Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 922 947 Temas Industriales SA - EmbargoGeneral de Fondos Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 103,110 - DBC SA C CERVECERIAARGENTINA SA ISEMBECK Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 18,502 19,009 Coto Cicsa Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 3,289 3,379 Cencosud Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 2,056 2,112 Mariano Mirgoni Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets - 105,936 Jose Luis Kreitzer, Alexis Beade YCesar Bechetti Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 8,143 - Causa Bariloche Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 1,902 - Marcus A.Peña Paraguay Refrescos Subsidiary Real estate Property, Plant and Equipment 5,692 4,011 Mauricio J Cordero C Paraguay Refrescos Subsidiary Real estate Property, Plant and Equipment 987 814 José Ruoti Maltese Paraguay Refrescos Subsidiary Real estate Property, Plant and Equipment 712 655 Alejandro Galeano Paraguay Refrescos Subsidiary Real estate Property, Plant and Equipment 1,365 1,132 Ana Maria Mazó Paraguay Refrescos Subsidiary Real estate Property, Plant and Equipment 1,300 1,077 71 Guarantees that do not commit assets recognized in the Financial Statements: Committed assets Amounts involved Guaranty creditor Debtor name Relationship Guaranty Type 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Labor procedures Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 1,593,498 1,527,347 Administrative procedures Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 4,717,824 8,860,598 Federal Government Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 153,491,717 147,841,989 State Government Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 64,725,638 46,031,398 Sorocaba Refrescos Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Guarantor 3,027,291 2,736,159 Others Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 3,390,177 1,715,099 Aduana de EZEIZA Embotelladora del Atlántico S.A. Subsidiary Surety insurance Faithful compliance of contract - 3,150 Aduana de EZEIZA Andina Empaques Argentina S.A. Subsidiary Surety insurance Faithful compliance of contract 637,631 143,615 72 24 – FINANCIAL RISK MANAGEMENT The Company’s businesses are exposed to a variety of financial and market risks (including foreign exchange risk, interest rate risk and price risk). The Company’sglobal risk management program focuses on the uncertainty of financial markets and seeks to minimize potential adverse effects on the performance of theCompany. The Company uses derivatives to hedge certain risks. A description of the primary policies established by the Company to manage financial risks areprovided 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, which currently have an outstanding balanceof UF 15.45 million denominated in UF (“UF”), debt indexed to inflation in Chile (Company sales are correlated with the UF variation), of which five of theseLocal Bonds have been redenominated 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 365 million,denominated in dollars, and practically 100% of which has been re-denominated to BRL through Cross Currency Swaps, and another one for USD 300 milliondenominated 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 chains indomestic markets; and the financial investments held with banks and financial institutions, such as time deposits, mutual funds and derivative financial instruments. a)Trade accounts receivable and other current accounts receivable Credit risk related to trade accounts receivable is managed and monitored by the area of Finance and Administration of each business unit. The Company has a widebase of more than 283 thousand clients implying a high level of atomization of accounts receivable, which are subject to policies, procedures and controlsestablished by the Company. In accordance with such policies, credits must be based objectively, non-discretionary and uniformly granted to all clients of a samesegment and channel, provided these will allow generating economic benefits to the Company. The credit limit is checked periodically considering paymentbehavior. 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 debts for anamount greater than USD 250,000, and over 60 days expired, sale is suspended. The General Manager in conjunction with the Finance and AdministrationManager authorize exceptions to this rule, and if the outstanding debt should exceed USD 1,000,000, and in order to continue operating with that client, theauthorization of the Chief Financial Officer is required. Notwithstanding the foregoing, each operation can define an amount lower than USD 250,000according to the country’s reality. ii. Impairment The impairment recognition policy establishes the following criteria for provisions: 30% is provisioned for 31 to 60 days overdue, 60% between 60 and 91days, 90% between 91 and 120 days overdue and 100% for more than 120 days. Exemption of the calculation of global impairment is given to creditswhose delays in the payment correspond to accounts disputed with the customer whose nature is known and where all necessary documentation forcollection is available, therefore, there is no uncertainty on recovering them. However, these accounts also have an impairment provision as follows: 40%for 91 to 120 days overdue, 80% between 120 and 170, and 100% for more than 170 days. 73 iii. Prepayment to suppliers The Policy establishes that USD 25,000 prepayments can only be granted to suppliers if its value is properly and fully provisioned. The Treasurer of eachsubsidiary must approve supplier warranties that the Company receives for prepayments before signing the respective service contract. In the case ofdomestic suppliers, a warranty ballot (or the instrument existing in the country) shall be required, in favor of Andina executable in the respective country,non-endorsable, payable on demand or upon presentation and its validity will depend on the term of the contract. In the case of foreign suppliers, a stand-by credit letter will be required which shall be issued by a first line bank; in the event that this document is not issued in the country where the transactionis done, a direct bank warranty will be required. Subsidiaries can define the best way of safeguarding the Company’s assets for prepayments under USD25,000. iv.Guarantees In Chile, we have insurance with Compañía de Seguros de Crédito Continental S.A. (AA rating –according to Fitch Chile and Humphreys rating agencies)covering the credit risk regarding trade debtors in Chile. The rest of the operations do not have credit insurance, instead mortgage guarantees are required for volume operations of wholesalers and distributors inthe case of trade accounts receivables. In the case of other debtors, different types of guarantees are required according to the nature of the credit granted. Historically, uncollectible trade accounts have been lower than 0.5% of the Company’s total sales. b) Financial investments The Company has a Policy that is applicable to all the companies of the group in order to cover credit risks for financial investments, restricting both the types ofinstruments 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 less than 1year and rated A or higher (S&P) or equivalent for deposits of more than 1 year. ii.Mutual funds: investments with immediate liquidity and no risk of capital (funds composed of investments at a fixed-term, current account, fixed rate TitBCRA, negotiable obligations, Over Night, etc.) in all those counter-parties that have a rating greater than or equal to AA-(S&P) or equivalent, Type 1Pacts and Mutual Funds, with a rating greater than or equal to AA+ (S&P) or equivalent. iii.Other investment alternatives must be evaluated and authorized by the office of the Chief Financial Officer. 74 Exchange Rate Risk The company is exposed to three types of risk caused by exchange rate volatility: a) Exposure of foreign investment This risk originates from the translation of net investment from the functional currency of each country (Brazilian Real, Paraguayan Guaraní, and Argentine Peso)to the Parent Company’s reporting currency (Chilean Peso). Appreciation or devaluation of the Chilean Peso with respect to the functional currencies of eachcountry, originates decreases and increases in equity, respectively. The Company does not hedge this risk. USD/CLP BRL/CLP ARS/CLP PGY/CLP Currency variation at closing +18.8% +9.4% -2.7% +19.1% Brazil Argentina Paraguay CLP (000’s) CLP (000’s) CLP (000’s) Total assets 903,369,847 334,076,764 343,269,734 Total liabilities 644,077,808 122,221,435 51,449,972 Net investment 259,292,039 211,855,329 291,819,762 Share on income 24.3% 24.0% 7.6% -5% variation impact on currency translation Impact on results for the period (2,171,576) (980,976) (1,942,324)Impact on equity at closing (12,076,796) (6,738,919) (13,162,380) Net exposure of assets and liabilities in foreign currency This risk stems mostly from carrying liabilities in US dollar, so the volatility of the US dollar with respect to the functional currency of each country generates avariation 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, theCompany 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, aremitigated annulling its exposure to exchange rates. b) Exposure of assets purchased or indexed to foreign currency This risk originates from purchases of raw materials and investments in Property, plant and equipment, whose values are expressed in a currency other than thefunctional currency of the subsidiary. Changes in the value of costs or investments can be generated through time, depending on the volatility of the exchange rate. In order to minimize this risk, the Company maintains a currency hedging policy stipulating that it is necessary to enter into foreign currency derivatives contractsto lessen the effect of the exchange rate over cash expenditures expressed in US dollars, corresponding mainly to payment to suppliers of raw materials in each ofthe operations. This policy stipulates up to 12-month forward horizon. 75 Commodities risk The Company is subject to a risk of price fluctuations in the international markets mainly for sugar, PET resin and aluminum, which are inputs used to producebeverages and containers, which together, account for 35% to 40% of operating costs. Procurement and anticipated purchase contracts are made frequently tominimize and/or stabilize this risk. To minimize this risk or stabilize often supply contracts and anticipated purchases are made when market conditions warrant. Liquidity risk The products we sell are mainly paid for in cash and short-term credit; therefore, the Company´s main source of financing comes from the cash flow of ouroperations. This cash flow has historically been sufficient to cover the investments necessary for the normal course of our business, as well as the distribution ofdividends approved by the General Shareholders’ Meeting. Should additional funding be required for future geographic expansion or other needs, the main sourcesof financing to consider are: (i) debt offerings in the Chilean and foreign capital markets (ii) borrowings from commercial banks, both internationally and in thelocal markets where the Company operates; and (iii) public equity offerings The following table presents an analysis of the Company’s committed maturities for liability payments throughout the coming years, with interest calculated foreach 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 26,617 - - 4,000,000 - Bonds payable 25,383,339 321,636,043 13,915,567 14,545,378 670,564,954 Lease obligations 8,191,535 4,949,066 2,975,353 2,641,096 5,821,515 Contractual obligations (1) 85,354,594 31,678,743 9,036,380 8,992,060 4,950,895 Total 118,956,085 358,263,852 25,927,300 30,178,534 681,337,364 (1) Agreements that the Andina Group has with collaborating entities for its operation, which are mainly related to contracts entered into to supplyproducts and/or support services in information technology services, commitments of the company with its franchisor to make investments orexpenses related to the development of the franchise, support services to personnel, security services, maintenance services of fixed assets,purchase of inputs for production, among others. 76 COVID-19-Related Risk As a result of the impact that COVID-19 is having in different countries around the world, including its recent outbreak in the region where we operate, Coca-ColaAndina is adopting 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 positions where 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 truck driversand assistants, including face masks and sanitizers.·We developed a plan to promote and encourage voluntary vaccination of our own employees and direct third parties, with weekly monitoring of theevolution of the vaccination status at the regional level.·In our plants and distribution centers, we established a preventive protocol for the application of COVID-19 PCR and antigen tests to detect andisolate infected people and identify close contacts. Since mid-March 2020, governments of the countries where the Company operates, have adopted several measures to reduce infection rates of COVID-19. Amongthese measures are, closing of schools, universities, shopping centers, restaurants and bars, prohibiting social gathering events, issuing stay-at-home orders andestablishing quarantine requirements, imposing additional sanitary requirements on exports and imports, and limiting international travel and closing borders.Governments in the countries where we operate have also announced economic stimulus programs for families and businesses, including in Argentina a restrictionon 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 a great volatility in oursales across channels. During this fiscal year, at a consolidated level, we have observed an improvement in the relative share of our sales channels. Because thepandemic and the actions taken by governments are changing very rapidly, we believe it is too early to draw conclusions regarding changes in the long-termconsumption pattern, and how these may affect our operating and financial results in the future. Due to uncertainties regarding the COVID-19 pandemic and the above-mentioned government restrictions, including how long these conditions may persist, and theeffects they will have on our sales volumes and our business in general, we cannot accurately predict the ultimate financial impact from these new trends. In anyevent, we estimate that the Company will not face liquidity constraints, or difficulties in complying with covenants under our debt instruments. We do not anticipateany significant provisions or impairments at this time. 77 25 – EXPENSES BY NATURE Other expenses by nature are: 01.01.2021 01.01.2020 Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Direct production costs 1,192,363,804 862,383,664 Payroll and employee benefits 301,522,420 252,337,262 Transportation and distribution 174,253,526 126,683,586 Advertisement 28,475,957 6,917,300 Depreciation y amortization 104,775,303 110,920,517 Repairs and maintenance 38,631,914 25,971,485 Other expenses 84,272,085 73,455,798 Total (1) 1,924,295,009 1,458,669,612 (1)Corresponds to the addition of cost of sales, administrative expenses and distribution costs 26 – OTHER INCOME Other income by functio is detailed as follows: 01.01.2021 01.01.2020 Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Gain on disposal of Property, plant and equipment 480,401 16,005 Recovery of PIS credit and COFINS (1) - 6,744,341 Others 857,477 1,595,952 Total 1,337,878 8,356,298 (1)See Note 6 for more information on recovery. 27 – OTHER EXPENSES BY FUNCTION Other expenses by function are detailed as follows: 01.01.2021 01.01.2020 Description 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Contingencies and associated non-operating fees 7,950,093 1,081,812 Tax on bank debts and other bank expenses 5,270,040 3,367,615 Write-offs and disposal of Property, plant and equipment 417,623 7,972,976 Others 1,574,034 5,007,853 Total 15,211,790 17,430,256 78 28 – FINANCIAL INCOME AND COSTS Financial income and costs are detailed as follows: a)Financial income 01.01.2021 01.01.2020 Description 12.31.2021 12.31.2020 CLP (000’S) CLP (000’S) Interest income 2,196,886 7,931,055 Ipiranga purchase warranty restatement 11,290 7,674 Recovery of PIS credit and COFINS (1) 1,312,930 5,124,810 Other financial income 4,270,763 1,882,340 Total 7,791,869 14,945,879 (1)See Note 6 for more information on recovery. b)Financial costs 01.01.2021 01.01.2020 Description 12.31.2021 12.31.2020 CLP (000’S) CLP (000’S) Bond interest 48,624,062 45,927,500 Bank loan interest 267,012 1,186,731 Lease interest 1,816,506 1,873,571 Other financial costs 2,284,876 5,785,035 Total 52,992,456 54,772,837 29 – OTHER (LOSSES) GAINS Other (losses) gains are detailed as follows: 01.01.2021 01.01.2020 Description 12.31.2021 12.31.2020 CLP (000’S) CLP (000’S) Other gains (losses) - 287 Total - 287 79 30 – LOCAL AND FOREIGN CURRENCY Local and foreign currency balances are the following: CURRENT ASSETS 12.31.2021 12.31.2020 CLP (000’s) CLP (000’s) Cash and cash equivalent 304,312,020 309,530,699 USD 13,640,823 21,332,268 EUR 2,838,102 223,449 CLP 176,278,025 201,936,140 BRL 56,272,827 49,528,425 ARS 22,425,407 14,821,502 PGY 32,856,836 21,688,915 Other current financial assets 195,470,749 140,304,853 CLP 194,834,125 139,449,882 BRL 140,544 10,171 ARS 481,148 844,800 PGY 14,932 - Other non-current financial assets 14,719,104 13,374,381 USD 1,141,780 1,723,989 EUR 77,526 621,516 UF 256,912 493,546 CLP 6,282,535 1,900,762 BRL 1,183,076 1,300,995 ARS 3,831,513 6,052,294 PGY 1,945,762 1,281,279 Trade debtors and other accounts payable 265,490,626 194,021,253 USD 2,347,439 901,930 UF 69,142 65,250 CLP 147,478,959 105,340,179 BRL 76,173,944 67,423,832 ARS 32,330,010 14,928,954 PGY 7,091,132 5,361,108 Accounts receivable related entities 9,419,050 11,875,408 CLP 6,674,178 6,965,894 BRL 87,865 41,878 ARS 2,657,007 4,867,636 Inventory 191,350,206 127,972,650 CLP 77,225,374 54,112,760 BRL 44,848,239 31,446,180 ARS 54,376,217 32,214,119 PGY 14,900,376 10,199,591 Current tax assets 10,224,368 218,472 CLP 5,574,826 218,472 BRL 4,649,542 - Total current assets 990,986,123 797,297,716 USD 17,130,042 23,958,187 EUR 2,915,628 844,965 UF 326,054 558,796 CLP 614,348,022 509,924,089 BRL 183,356,037 149,751,481 ARS 116,101,302 73,729,305 PGY 56,809,038 38,530,893 80 NON-CURRENT ASSETS 12.31.2021 12.31.2020 CLP (000's) CLP (000’s) Other non-current assets 296,632,012 162,013,278 UF 34,239,224 7,515,981 CLP 55,469,858 - BRL 192,844,909 144,684,180 ARS 14,078,021 9,813,117 Other non-current, non-financial assets 70,861,616 90,242,672 USD 673,524 - UF - 338,014 CLP 419,910 47,530 BRL 66,621,741 88,001,852 ARS 1,836,280 1,825,631 PGY 1,310,161 29,645 Non-current accounts receivable 126,464 73,862 UF 7,089 32,219 CLP 76,649 - ARS - 1,211 PGY 42,726 40,432 Non-current accounts receivable related entities 98,941 138,346 CLP 98,941 138,346 Investments accounted for using the equity method 91,489,194 87,956,354 CLP 52,519,699 50,628,307 BRL 38,969,495 37,328,047 Intangible assets other than goodwill 659,631,543 604,514,165 USD - 3,959,421 CLP 311,086,862 306,202,181 BRL 159,307,806 139,166,117 ARS 7,560,882 2,591,026 PGY 181,675,993 152,595,420 Goodwill 118,042,900 98,325,593 CLP 9,523,767 9,523,767 BRL 60,830,705 54,980,669 ARS 39,976,392 27,343,642 PGY 7,712,036 6,477,515 Property, plant and equipment 716,379,127 605,576,545 EUR 404,450 CLP 273,812,253 255,963,912 BRL 201,527,151 179,286,945 ARS 152,227,991 103,227,548 PGY 88,407,282 67,098,140 Deferred tax assets 1,858,727 1,925,869 CLP 1,858,727 1,925,869 Total non-current assets 1,955,120,524 1,650,766,684 USD 673,524 3,959,421 EUR 404,450 UF 34,246,313 7,886,214 CLP 704,866,666 624,429,912 BRL 720,101,807 643,447,810 ARS 215,679,566 144,802,175 PGY 279,148,198 226,241,152 81 12.31.2021 12.31.2020 CURRENT LIABILITIES Up to 90 days 90 days up to 1 year Total Up to 90 days 90 days up to 1 year Total CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Other current financial liabilities 10.887.752 36.875.287 47.763.039 9.270.838 29.295.886 38.566.724 USD 233.993 8.329.598 8.563.591 72.655 6.704.245 6.776.900 UF 9.155.688 10.086.725 19.242.413 7.799.637 5.272.547 13.072.184 CLP 923.663 13.491.768 14.415.431 908.790 13.489.310 14.398.100 BRL 413.835 1.381.397 1.795.232 362.854 1.245.940 1.608.794 ARS 94.094 2.272.643 2.366.737 70.950 1.578.082 1.649.032 PGY 66.479 1.313.156 1.379.635 55.952 1.005.762 1.061.714 Current trade accounts and otheraccounts payable 312.643.627 14.765.580 327.409.207 227.503.270 2.942.539 230.445.809 USD 20.438.936 1.309.678 21.748.614 8.972.065 - 8.972.065 EUR 6.093.006 - 6.093.006 1.622.411 - 1.622.411 UF 2.359.381 - 2.359.381 - - - CLP 142.370.837 13.455.902 155.826.739 108.670.085 2.942.539 111.612.624 BRL 74.142.872 - 74.142.872 58.136.480 - 58.136.480 ARS 52.030.144 - 52.030.144 33.511.747 - 33.511.747 PGY 15.208.451 - 15.208.451 15.878.527 - 15.878.527 Other Currencies - - - 711.955 - 711.955 Current accounts payable to relatedentities 56.103.461 - 56.103.461 39.541.968 - 39.541.968 CLP 29.349.401 - 29.349.401 23.884.687 - 23.884.687 BRL 16.799.532 - 16.799.532 10.809.085 - 10.809.085 ARS 9.893.495 - 9.893.495 4.848.196 - 4.848.196 PGY 61.033 - 61.033 - - - Other current provisions 1.082.929 445.950 1.528.879 805.842 529.495 1.335.337 CLP 1.082.929 404.580 1.487.509 805.842 494.748 1.300.590 PGY - 41.370 41.370 - 34.747 34.747 Current tax liabilities 20.733.623 9.779.164 30.512.787 4.590.876 4.237.723 8.828.599 CLP 20.038.643 8.452 20.047.095 173.771 3.414.859 3.588.630 BRL - - - 4.249.909 - 4.249.909 ARS 694.980 8.524.083 9.219.063 167.196 439.641 606.837 PGY - 1.246.629 1.246.629 - 383.223 383.223 Current employee benefit provisions 13.434.697 21.577.375 35.012.072 17.027.427 14.043.592 31.071.019 CLP 1.181.717 7.327.637 8.509.354 1.168.973 5.799.389 6.968.362 BRL 11.649.154 - 11.649.154 15.325.256 - 15.325.256 ARS 603.826 12.529.323 13.133.149 533.198 6.701.756 7.234.954 PGY - 1.720.415 1.720.415 - 1.542.447 1.542.447 Other current non-financial liabilities 612.391 30.625.443 31.237.834 620.609 27.646.121 28.266.730 CLP 612.391 30.472.381 31.084.772 598.769 27.551.000 28.149.769 ARS - 18.234 18.234 21.840 - 21.840 PGY - 134.828 134.828 - 95.121 95.121 Total current liabilities 415.498.480 114.068.799 529.567.279 299.360.830 78.695.356 378.056.186 USD 20.672.929 9.639.276 30.312.205 9.044.720 6.704.245 15.748.965 EUR 6.093.006 - 6.093.006 1.622.411 - 1.622.411 UF 11.515.069 10.086.725 21.601.794 7.799.637 5.272.547 13.072.184 CLP 195.559.581 65.160.720 260.720.301 136.210.917 53.691.845 189.902.762 BRL 103.005.393 1.381.397 104.386.790 88.883.584 1.245.940 90.129.524 ARS 63.316.539 23.344.283 86.660.822 39.153.127 8.719.479 47.872.606 PGY 15.335.963 4.456.398 19.792.361 15.934.479 3.061.300 18.995.779 Other Currencies - - - 711.955 - 711.955 82 12.31.2021 12.31.2020 NON-CURRENT LIABILITIES More than 1year up to 3 More than 3 and up to 5 More than 5years Total More than 1 year up to 3 More than 3 and up to 5 More than 5 years 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 financial liabilities 35,164,178 331,118,858 674,765,936 1,041,048,972 31,811,687 279,600,958 678,416,924 989,829,569 USD 1,726,426 308,546,732 247,094,136 557,367,294 366,652 259,746,604 207,280,189 467,393,445 UF 29,821,850 15,453,105 423,470,818 468,745,773 24,669,188 13,214,387 414,689,041 452,572,616 CLP 602,887 4,000,000 - 4,602,887 4,089,001 4,000,000 51,568,854 59,657,855 BRL 2,926,876 3,119,021 4,200,982 10,246,879 2,394,281 2,639,967 4,878,840 9,913,088 ARS 86,139 - - 86,139 128,930 - - 128,930 PGY - - - - 163,635 - - 163,635 Non-current accounts payable 256,273 - - 256,273 295,279 - - 295,279 CLP 256,273 - - 256,273 293,176 - - 293,176 ARS - - - - 2,103 - - 2,103 Accounts payable related companies 11,557,723 - - 11,557,723 10,790,089 - - 10,790,089 BRL 11,557,723 - - 11,557,723 10,790,089 - - 10,790,089 Other non-current provisions 1,917,655 53,965,872 - 55,883,527 789,016 47,945,920 - 48,734,936 BRL - 53,965,872 - 53,965,872 - 47,945,920 - 47,945,920 ARS 1,917,655 - - 1,917,655 789,016 - - 789,016 Deferred tax liabilities 21,365,277 35,470,702 111,618,848 168,454,827 10,677,151 38,508,424 104,483,972 153,669,547 CLP 3,619,149 1,845,868 95,076,888 100,541,905 1,604,289 1,070,325 90,781,152 93,455,766 BRL - 33,624,834 - 33,624,834 - 37,438,099 - 37,438,099 ARS 17,746,128 - - 17,746,128 9,072,862 - - 9,072,862 PGY - - 16,541,960 16,541,960 - - 13,702,820 13,702,820 - - - - Non-current employee benefit provisions 1.329.992 62,456 12,747,222 14,139,670 911,873 145,165 12,578,520 13,635,558 CLP 629,798 62,456 12,747,222 13,439,476 378,733 145,165 12,578,520 13,102,418 PGY 700,194 - - 700,194 533,140 - - 533,140 Other non-financial liabilities 21,113 23,763,704 - 23,784,817 35,315 21,436,733 - 21,472,048 BRL - 23,763,704 - 23,763,704 - 21,436,733 - 21,436,733 ARS 21,113 - - 21,113 35,315 - - 35,315 Other non-financial liabilities - - - - 20,597 - - 20,597 CLP - - - - 20,597 - - 20,597 Total non-current liabilities 71,612,211 444,381,592 799,132,006 1,315,125,809 55,331,007 387,637,200 795,479,416 1,238,447,623 USD 1,726,426 308,546,732 247,094,136 557,367,294 366,652 259,746,604 207,280,189 467,393,445 UF 29,821,850 15,453,105 423,470,818 468,745,773 24,669,188 13,214,387 414,689,041 452,572,616 CLP 5,108,107 5,908,324 107,824,110 118,840,541 6,385,796 5,215,490 154,928,526 166,529,812 BRL 14,484,599 114,473,431 4,200,982 133,159,012 13,184,370 109,460,719 4,878,840 127,523,929 ARS 19,771,035 - - 19,771,035 10,028,226 - - 10,028,226 PGY 700,194 - 16,541,960 17,242,154 696,775 - 13,702,820 14,399,595 83 31 – ENVIRONMENT (non-audited) The Company has made disbursements for improvements in industrial processes, equipment to measure industrial waste flows, laboratory analysis, consulting onenvironmental impacts and others. These disbursements by country are detailed as follows: 2021 period Future commitments Country Recorded asExpenses Capitalized to Property, plant and equipment To be Recorded asExpenses To be Capitalized to Property, plant and equipment CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Chile 684,229 - - - Argentina 229,735 22,088 123,814 - Brazil 1,249,215 1,423,301 809,487 1,423,301 Paraguay 150,965 491,231 - - Total 2,314,144 1,936,620 933,301 1,423,301 32 – SUBSEQUENT EVENTS During February 2022, Chile’s Financial Market Commission (CMF) ratified the financial covenant for bond lines No. 254, No. 641, bond line No. 760 and bondline No. 912. For further information see Note 17.2 No other events have occurred after December 31, 2021, that may significantly affect the Company's consolidated financial situation. 84 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 10, 2022 4Q21
FEBRUARY 22, 2022
CONTACT IN SANTIAGO, CHILE
Andrés Wainer, Chief Financial Officer
Ignacio Morales, Finance and Treasury Manager
Corporate Office
(56-2) 2338-0520 / andina.ir@koandina.com
CONFERENCE CALL INFORMATION
Wednesday February 23, 2022
11:00 am Chile – 9:00 am EST
DIAL-IN PARTICIPANTS
U.S.A. 1 (800) 791-4813
International (outside U.S.A.) 1 (785) 424-1102
Access Code: ANDINA
WEBCAST
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Available at www.koandina.com
Thursday February 24, 2022
EXECUTIVE SUMMARY The quarter closed with Consolidated Sales Volume of 240.1 million unit cases*, increasing by 5.4% against the same quarter of the previousyear. Accumulated consolidated Sales Volume reached 828.3 million unit cases, which represents a 12.8% increase against the previous year.Excluding beer volume in Chile, volume increased by 8.6% in the period. Company figures reported are the following:●Consolidated Net Sales reached CLP 651,498 million in the quarter, a 24.2% increase against the same quarter of the previous year.Accumulated consolidated Net Sales reached CLP 2,216,733 million, which represents a 30.5% increase against the previous year.●Consolidated Operating Income* reached CLP 100,235 million in the quarter, which represents a 0.7% decrease against the samequarter of the previous year. Accumulated consolidated Operating Income was CLP 292,438 million, a 22.0% increase against theprevious year.●Consolidated Adjusted EBITDA* decreased by 3.7% against the same quarter of the previous year, reaching CLP 127,751 million in thequarter. Adjusted EBITDA Margin reached 19.6%, a contraction of 568 basis points against the same quarter of the previous year.Accumulated consolidated Adjusted EBITDA was CLP 397,213 million, which represents a 13.3% increase against the previous year.Adjusted EBITDA Margin for the period reached 17.9%, a contraction of 272 basis points against the previous year.●Net Income attributable to the owners of the controller for the quarter reached CLP 71,658 million, which represents a 46.4% increaseregarding the same quarter of the previous year. Accumulated Net Income attributable to the owners of the controller was CLP 154,698million, which represents a 26.8% increase regarding the previous year. SUMMARY OF RESULTS FOURTH QUARTER AND FULL YEAR ENDED DECEMBER 31, 2021(Figures in million CLP) 4Q204Q21Var % FY20FY21Var %Sales Volume (Million Unit Cases) 227.8240.15.4% 734.6828.312.8%Net Sales 524,363651,49824.2% 1,698,2812,216,73330.5%Opera ng Income* 100,904100,235-0.7% 239,612292,43822.0%Adjusted EBITDA* 132,610127,751-3.7% 350,532397,21313.3%Net income a ributable to the owners of the controller 48,94871,65846.4% 122,000154,69826.8% Comment of the Chief Executive Officer, Mr. Miguel Ángel Peirano "2021 was a very good year for the company not only in the financial dimension, which ended with a record EBITDA of CLP 397.2 billion, but also incommercial, strategic and sustainability aspects. All this in a still very changing environment, due to the effect that COVID-19 has continued tohave on people's mobility, and the restrictions that the on-premise channel has had, where the company's priority has always been the safety of itscollaborators.Consolidated sales volume grew by 12.8%. Chile's volume growth of 29.9% (17.2% excluding beer) and Argentina's volume growth of 10.8% werenoteworthy.We also expanded our product portfolio, which allows us to offer more options to our consumers. In Chile, we signed a distribution agreement withViña Santa Rita, thus completing our beverage portfolio, where we now participate in all the main categories, non-alcoholic and alcoholic. In Brazil,we purchased a premium beer brand, Therezópolis, and signed a commercialization agreement with the Spanish brewery Estrella Galicia, which willallow us to replace the part of the volume of Heineken brands that we lost in October 2021.2021 was also a year of strong growth for our online consumer sales channel in Chile, micocacola.cl, which recorded a 65.0% increase in salescompared to the previous year. We are currently about to launch an online sales channel in Rio de Janeiro as well.Digital development and transformation is a Strategic Objective for Coca-Cola Andina, in which we showed significant progress during 2021. In thecustomer dimension, we implemented KOBoss in our operations, a simple and direct solution for small customers through Whatsapp; this year wewill additionally scale miAndina, a B2B omnichannel solution that delivers the same shopping experience to customers (Price, Portfolio, etc.) 24/7.In the consumer dimension, we managed to grow profitably with miCoca-Cola.cl (about 1.5% of sales in Santiago) based on a great consumerexperience, with an NPS >90% and we recently launched Coca-Cola na sua casa in Brazil. Finally, regarding our internal processes, we are in thefinal phase of our Front Office project, where we are already capturing benefits of efficiencies and productivities through systems that allow bettermanagement of Supply Chain & Distribution, as well as Data Analytics for market processes highlighting pricing, promotions and suggestedorders.Finally, I would like to highlight some developments in sustainability issues: in Paraguay we are about to start using recycled resin in our bottles,which will be produced by a Joint Venture ("Circular Pet") that we have with local partners. Along the same lines, in Chile we have formed apartnership with Embonor, "Re-Ciclar", which will have the same objective and will be operational in 2024. In addition, in Chile we have reduced thewater used from 2.11 in 2020 to 1.95 in 2021, and in Brazil we have continued to grow in the use of recycled resin, reaching 21.4% in 2021." * The definitions used can be found in the Glossary on page 18 of this document. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -2- 4Q204Q21Var %(Figures in million CLP) Net Sales 524,363651,49824.2%Opera ng Income 100,904100,235-0.7%Adjusted EBITDA 132,610127,751-3.7%Net income a ributable to the owners of the controller 48,94871,65846.4% BASIS OF PRESENTATION Figures in the following analysis are set according to IFRS, in nominal Chilean pesos, for consolidated results as well as for the results of each of ouroperations. All variations regarding 2020 are nominal. Since Argentina has been classified as a Hyperinflationary economy, pursuant to IAS 29, translation of figures from local to reporting currency was performedusing the closing exchange rate for the translation to Chilean pesos. Figures in local currency for both 2021 and 2020 to which we refer in the sections onArgentina, are all expressed in currency of December 2021. Finally, a devaluation of local currencies regarding the U.S. dollar has a negative impact on our dollarized costs and a devaluation of local currencies regardingthe Chilean peso has a negative impact upon consolidating figures. When we refer to "Argentina", we mean our subsidiaries Embotelladora del Atlántico S.A. and Empaques Argentina S.A. When we refer to "Chile", we meanour subsidiaries Embotelladora Andina S.A., VJ S.A., Vital Aguas S.A. and Envases Central S.A. CONSOLIDATED RESULTS: 4th Quarter 2021 vs. 4th Quarter 2020 Consolidated Sales Volume during the quarter was 240.1 million unit cases, representing a 5.4% increase over the same period in 2020, explained by thevolume increase of operations in Chile, Argentina and Paraguay, partially offset by the volume decrease of the operation in Brazil. Transactions reached1,296.9 million in the quarter, representing an 11.3% increase against the same quarter of the previous year. Consolidated Net Sales reached CLP 651,498 million, an increase of 24.2%, explained by the revenue growth in Argentina, Chile and Paraguay, partially offsetby decreased net sales in Brazil. Consolidated Costs of Sales increased by 25.8%, mainly explained by (i) greater volume sold, (ii) a higher cost of PET resin in the four operations, and (iii) ahigher cost of sugar in Argentina, Brazil and Chile. Consolidated Distribution Costs and Administrative Expenses increased by 42.7%, which is mainly explained by (i) higher marketing expenses, (ii) greaterlabor expenses, (iii) increased distribution expenses due to greater volumes and higher tariffs, and (iv) lower other operating income, classified under this item. The above mentioned effects led to a consolidated Operating Income of CLP 100,235 million, a 0.7% decrease. Operating Margin was 15.4%. Consolidated Adjusted EBITDA reached CLP 127,751 million, decreasing by 3.7%. Adjusted EBITDA Margin was 19.6%, a contraction of 568 basis points. Net Income attributable to the owners of the controller for the quarter was CLP 71,658 million, a 46.4% increase and Net Margin reached 11.0%, an expansionof 166 basis points. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -3- 4Q204Q21Var % 4Q204Q21Var % (Figures in million CLP) (Figures in million ARS of December 2021)Net Sales 100,970166,20064.6% 17,95120,21112.6%Operating Income 10,64613,95931.1% 1,8931,698-10.3%Adjusted EBITDA 17,14022,83133.2% 3,0472,776-8.9% 4Q204Q21Var % 4Q204Q21Var % (Figures in million CLP) (Figures in million BRL)Net Sales 160,725130,601-18.7% 1,139881-22.6%Operating Income 33,58023,849-29.0% 238161-32.4%Adjusted EBITDA 39,60930,141-23.9% 280203-27.6% ARGENTINA: 4th Quarter 2021 vs. 4th Quarter 2020 Sales Volume for the quarter increased by 8.5%, reaching 56.5 million unit cases, explained by a volume increase in all categories. Transactions reached259.5 million, representing an increase of 20.1%, due to the recovery of immediate consumption packaging. Our market share in the soft drinks segmentreached 59.0 points, a contraction of 261 basis points compared to the same period of the previous year. It is worth mentioning that as a result of restrictionsrelated to COVID-19, from April 2020 the company conducting the survey had to change the methodology and the sample, which some months were carriedout with a higher degree of face-to-face/telephone measurement than other months, therefore figures are not completely comparable with those of previousperiods. Net Sales reached CLP 166,200 million, increasing by 64.6%. In local currency they increased by 12.6%, which was mainly explained by the previouslymentioned volume increase, and to a lower extent by the increase of average income per unit case sold, which resulted from price increases carried out anddue to the recovery of immediate consumption packaging sales. Cost of Sales increased by 72.8%, while in local currency it increased by 18.2%, which is mainly explained by (i) the increase of volume sold, (ii) the negativeeffect of the devaluation of the Argentine peso on our dollarized costs; (iii) an increase in the mix of immediate consumption packaging, and (iv) a higher costof sugar, PET, aluminum and electric energy. Distribution Costs and Administrative Expenses increased by 62.4% in the reporting currency, while in local currency they increased by 11.1%, which is mainlyexplained by (i) higher labor expenses, (ii) higher distribution expenses and (iii) lower other operating income classified under this item. The above mentioned effects led to an Operating Income of CLP 13,959 million, a 31.1% increase regarding the same period of the previous year. OperatingMargin was 8.4%. In local currency Operating Income decreased by 10.3%. Adjusted EBITDA amounted to CLP 22,831 million, a 33.2% increase. Adjusted EBITDA Margin was 13.7%, a contraction of 324 basis points. On the otherhand, in local currency Adjusted EBITDA decreased by 8.9%. BRAZIL: 4th Quarter 2021 vs. 4th Quarter 2020 Sales Volume for the quarter reached 71.0 million unit cases, a decrease of 9.6%, explained by a decreased volume in the categories for Soft drinks andBeers, partially offset by an increase in the categories for Water and Juices and other non-alcoholic beverages. Transactions reached 389.4 million,representing a 15.6% decrease. Soft drinks market share in our franchises in Brazil reached 62.5 points, an expansion of 24 basis points compared to thesame period of the previous year. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com-4- 4Q204Q21Var % (Figures in million CLP)Net Sales 217,378299,42937.7%Operating Income 44,14148,0358.8%Adjusted EBITDA 60,78257,651-5.2% Net Sales amounted to CLP 130,601 million, a decrease of 18.7%. In local currency, Net Sales decreased by 22.6%, which was mainly explained by a loweraverage income per unit case sold, mainly explained by a lower price and mix of Beers, and by the already mentioned volume decrease. Cost of Sales decreased by 23.7%, while in local currency it decreased by 27.3%, which is mainly explained by (i) the decrease in total volume, and (ii) adecrease in beer volumes, which has a high unit cost. These effects were partially offset by a higher cost of raw materials, such as sugar and resin. Distribution Costs and Administrative Expenses increased by 14.1% in the reporting currency. In local currency, they increased by 8.5%, which is mainlyexplained by (i) greater marketing expenses, which have returned to pre-pandemic levels, and (ii) by lower other operating income, that are classified underthis item. The increase of these costs was partially offset by lower labor expenses and lower depreciation expenses. The above mentioned effects led to an Operating Income of CLP 23,849 million, a 29.0% decrease. Operating Margin was 18.3%. In local currency, OperatingIncome decreased by 32.4%. Adjusted EBITDA reached CLP 30,141 million, a 23.9% decrease compared to the previous year. Adjusted EBITDA Margin was 23.1%, a contraction of 157basis points. Adjusted EBITDA in local currency decreased by 27.6%. CHILE: 4th Quarter 2021 vs. 4th Quarter 2020 Sales Volume for the quarter reached 91.3 million unit cases, which implied a 19.2% increase, explained by increased volume of all categories. Excluding beervolume resulting from the agreement with AB InBev, volume would have increased by 12.7% in the quarter, explained by growth in the sales volume of thecategories for Soft drinks, Water and Juices and other non-alcoholic beverages. Transactions reached 525.7 million, which represents a 38.0% increase. Softdrinks market share reached 64.6 points; an expansion of 49 basis points compared to the same period of the previous year. It is worth mentioning that as aresult of restrictions related to COVID-19, from April 2020 the company conducting the survey had to change the methodology and the sample, which somemonths were carried out with a higher degree of face-to-face/telephone measurement than other months, therefore figures are not completely comparable withthose of previous periods. Net Sales reached CLP 299,429 million, a 37.7% growth, which is mainly explained by the already mentioned increase in volumes, and by increased averageincome per unit case sold. Cost of Sales increased by 45.1%, which is mainly explained by (i) increased sales in the category for Beer and spirits, explained by the commercialization ofAB InBev beers, which have a high cost per unit case, (ii) higher sales volume of the other categories, and (iii) the increase in the cost of certain raw materials,particularly resin and sugar. Distribution Costs and Administrative Expenses increased by 45.3%, which is mainly explained by (i) higher distribution and hauling expenses, as a result ofhigher volume sold and greater tariffs, (ii) greater labor expenses, and (iii) lower other operating income, that are classified under this item. The above mentioned effects led to an Operating Income of CLP 48,035 million, 8.8% higher compared to the previous year. Operating Margin was 16.0%. Adjusted EBITDA reached CLP 57,651 million, a decrease of 5.2%. Adjusted EBITDA Margin was 19.3%, a contraction of 871 basis points. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com-5- 4Q204Q21Var % 4Q204Q21Var % (Figures in million CLP) (Figures in million PGY)Net Sales 45,98256,47422.8% 424,089467,14010.2%Operating Income 14,26916,42915.1% 131,869135,2932.6%Adjusted EBITDA 16,81019,16514.0% 155,286157,9781.7% PARAGUAY: 4th Quarter 2021 vs. 4th Quarter 2020 Sales Volume in the quarter reached 21.3 million unit cases, an increase of 3.5%, explained by the volume increase in all categories. Transactions reached122.2 million, which represents a 14.3% increase. Our soft drinks market share reached 75.7 points in the quarter; a contraction of 81 basis points compared tothe same quarter of the previous year. It is worth mentioning that as a result of restrictions related to COVID-19, from April 2020 the company conducting thesurvey had to change the methodology and the sample, which some months were carried out with a higher degree of face-to-face/telephone measurementthan other months, therefore figures are not completely comparable with those of previous periods. Net Sales reached CLP 56,474 million, reflecting a 22.8% increase. In local currency, Net Sales increased by 10.2%, which was mainly explained by a higheraverage income per unit case sold and by the already mentioned volume increase. Cost of Sales in the reporting currency increased by 23.7%. In local currency it increased by 11.5%, which is mainly explained by greater sales volume, as wellas by a higher cost of resin. Distribution Costs and Administrative Expenses increased by 35.2%, and in local currency they increased by 20.8%. This is mainly explained by (i) greatermarketing expenses, which have returned to pre-pandemic levels, (ii) lower other operating income, that are classified under this item, and (iii) greaterdistribution expenses because of higher volume sold and by higher tariffs. The above mentioned effects led to an Operating Income of CLP 16,429 million, 15.1% higher compared to the previous year. Operating Margin reached29.1%. In local currency Operating Income increased by 2.6%. Adjusted EBITDA reached CLP 19,165 million, an increase of 14.0% and Adjusted EBITDA Margin was 33.9%, a contraction of 262 basis points. AdjustedEBITDA in local currency increased by 1.7%. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com-6- FY20FY21Var %(Figures in million CLP) Net Sales 1,698,2812,216,73330.5%Operating Income 239,612292,43822.0%Adjusted EBITDA 350,532397,21313.3%Net income attributable to the owners of the controller 122,000154,69826.8% FY20FY21Var % FY20FY21Var % (Figures in million CLP) (Figures in million ARS of December 2021)Net Sales 318,828536,95568.4% 56,68465,29715.2%Operating Income 26,03250,32793.3% 4,6286,12032.2%Adjusted EBITDA 48,92883,19170.0% 8,69910,11716.3% ACCUMULATED RESULTS: Full Year ended December 31, 2021 vs. Full Year ended December 31, 2020 Consolidated Results Consolidated Sales Volume was 828.3 million unit cases, which represented a 12.8% increase over the same period in 2020, explained by the volume increasein all countries where we operate. Excluding Chile's beer volume, from the AB InBev agreement, sales volume increased by 8.6% in the year. On the otherhand, transactions reached 4,530.2 million, representing a 21.8% increase. Consolidated Net Sales reached CLP 2,216,733 million, a 30.5% increase. Consolidated Costs of Sales increased by 34.5%, mainly explained by (i) the greater volume sold, (ii) the shift in the mix towards products carrying a higherunit cost, such as those in immediate consumption packaging, (iii) a greater cost of sugar and PET in Argentina, Brazil and Chile, (iv) the devaluation of theArgentine peso against the U.S. dollar, which impacts dollarized costs, and (v) the effect of translating figures to Chilean pesos from our operation in Argentina. Consolidated Distribution Costs and Administrative Expenses increased by 25.8%, which is mainly explained by (i) greater marketing expenses, (ii) higherlabor costs in Argentina, Chile and Paraguay, (iii) increased distribution expenses because of higher volume sold, and (iv) the effect of translating figures toChilean pesos from our operation in Argentina. The above mentioned effects led to a consolidated Operating Income of CLP 292,438 million, an increase of 22.0%. Operating Margin was 13.2%. Consolidated Adjusted EBITDA reached CLP 397,213 million, increasing by 13.3%. Adjusted EBITDA Margin was 17.9%, a contraction of 272 basis points.Excluding the effect of Chile's beer distribution, from the AB InBev agreement, Adjusted EBITDA Margin was 19.2%, a contraction of 167 basis points. Net Income attributable to the owners of the controller was CLP 154,698 million, a 26.8% increase and net margin reached 7.0%. Argentina Sales Volume increased by 10.8%, reaching 184.7 million unit cases, explained by the volume increase in all categories. Transactions reached 825.3 million,representing an increase of 19.8%. Net Sales reached CLP 536,955 million, a 68.4% increase, while in local currency Net Sales increased by 15.2%, whichwas mainly explained by the previously mentioned volume increase, and to a lesser extent by the higher average income per unit case sold. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com-7- FY20FY21Var % FY20FY21Var % (Figures in million CLP) (Figures in million BRL)Net Sales 580,063539,257-7.0% 3,7583,8332.0%Opera ng Income 88,99569,342-22.1% 586491-16.2%Adjusted EBITDA 116,33592,990-20.1% 763659-13.6% FY20FY21Var % (Figures in million CLP)Net Sales 644,762975,29651.3%Opera ng Income 91,166135,23248.3%Adjusted EBITDA 141,437173,42222.6% Cost of Sales increased by 72.1%. In local currency it increased by 17.7%, which is mainly explained by (i) the increase of volume sold, (ii) the negative effectof the devaluation of the Argentine peso on our dollarized costs; and (iii) a higher cost of sugar and PET resin. Distribution Costs and Administrative Expenses increased by 57.8% in the reporting currency. In local currency these increased by 7.9%, which is mainlyexplained by (i) greater labor expenses, (ii) higher freight expenses because of increased sales volume, and (iii) lower other operating income classified underthis item. The above mentioned effects led to an Operating Income of CLP 50,327 million, a 93.3% increase. Operating Margin was 9.4%. In local currency, OperatingIncome increased by 32.2%. Adjusted EBITDA reached CLP 83,191 million, a 70.0% increase. Adjusted EBITDA Margin was 15.5%, an expansion of 15 basis points. For its part, AdjustedEBITDA in local currency increased by 16.3%. Brazil Sales volume increased by 0.5% reaching 266.4 million unit cases. The volume increase is explained by the volume growth in the categories for Waters andJuices and other non-alcoholic beverages, which was partially offset by the decrease in the categories for Soft drinks and Beers. For its part, transactionsreached 1,584.3 million, which represents a 0.3% increase. Net Sales reached CLP 539,257 million, a 7.0% decrease, impacted by the negative effect oftranslating figures to Chilean pesos. In local currency, Net Sales increased by 2.0%, due to a higher average price as well as by the already mentioned volumeincrease. Cost of Sales decreased by 3.2%, while in local currency it increased by 6.4%, which is mainly explained by (i) a higher cost of sugar, (ii) a higher resin usageand cost, and (iii) the negative effect of the devaluation of the Brazilian real on our dollarized costs. Distribution Costs and Administrative Expenses decreased by 7.7% in the reporting currency, and in local currency, they increased by 2.3%, which is mainlyexplained by (i) greater advertising expenses and (ii) greater distribution expenses resulting from higher volumes and an increase in fuel prices. This increasewas partially offset by lower depreciation charges and lower labor costs. The above mentioned effects led to an Operating Income of CLP 69,342 million, a 22.1% decrease. Operating Margin was 12.9%. In local currency, OperatingIncome decreased by 16.2%. Adjusted EBITDA reached CLP 92,990 million, a 20.1% decrease compared to the previous year. Adjusted EBITDA Margin was 17.2%, a contraction of 281basis points. Adjusted EBITDA in local currency decreased by 13.6%. Chile COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -8- FY20FY21Var % FY20FY21Var % (Figures in million CLP) (Figures in million PGY)Net Sales 157,153169,2167.7% 1,351,9091,497,92410.8%Opera ng Income 38,84543,92913.1% 337,587386,83114.6%Adjusted EBITDA 49,25954,0049.6% 426,706476,64611.7% Sales Volume reached 307.0 million unit cases, which implied a 29.9% increase, explained by increased volume of all categories, particularly in the categoryfor Beer and spirits. Excluding Chile’s beer volume resulting from the agreement with AB InBev, sales volume would have increased by 17.2% in the year,explained by the double-digit growth in all non-alcoholic beverages. For its part, transactions reached 1,724.5 million, which represents a 56.2% increase. NetSales reached CLP 975,296 million, a 51.3% increase, which is mainly explained by the already mentioned increase in Sales Volume, and to a lesser extent bythe higher average price in the period. This higher average price in the period is explained by a greater mix of the category for Beer and spirits and by a higheraverage price of the categories for non-alcoholic beverages. Cost of Sales increased by 60.6%, which is mainly explained by increased sales in the category for Beers and spirits, explained by the commercialization of ABInBev beers, which have a high cost per unit case, by higher sales volume of the other categories and by the increased cost of PET resin. Distribution Costs and Administrative Expenses increased by 30.0%, which is mainly explained by (i) higher freight expenses due to greater volume sold,(ii) greater labor costs, and (iii) higher advertising expenses. The above mentioned effects led to an Operating Income of CLP 135,232 million, 48.3% higher compared to the previous year. Operating Margin was 13.9%. Adjusted EBITDA reached CLP 173,422 million, an increase of 22.6%. Adjusted EBITDA Margin was 17.8%, a contraction of 415 basis points. Excluding theeffect of the distribution of beer from the agreement with AB InBev, Adjusted EBITDA Margin was 21.1%, a contraction of 156 basis points when compared tothe same period of the previous year. Paraguay Sales Volume reached 70.3 million unit cases, which implied a 5.8% increase, mainly explained by the increase in the categories for Soft drinks and Waters.For its part, transactions reached 396.1 million, which represents a 14.6% increase. Net Sales reached CLP 169,216 million, increasing by 7.7%. In localcurrency, Net Sales increased by 10.8%, which is mainly explained by the already mentioned Sales Volume increase, as well as by a higher average price. Cost of Sales increased by 5.0% and in local currency it increased by 8.3%, which is mainly explained by the greater volume sold. Distribution Costs and Administrative Expenses increased by 8.4% in the reporting currency. In local currency they increased by 13.1%, which is mainlyexplained by (i) greater labor expenses, (ii) greater advertising expenses, (iii) greater depreciation expenses, and (iv) greater distribution expenses, because ofhigher volume sold. The above mentioned effects led to an Operating Income of CLP 43,929 million, 13.1% higher compared to the previous year. Operating Margin reached26.0%. In local currency Operating Income increased by 14.6%. Adjusted EBITDA reached CLP 54,004 million, higher by 9.6% when compared to the previous year and Adjusted EBITDA Margin was 31.9%, an expansion of57 basis points. Adjusted EBITDA in local currency increased by 11.7%. NON-OPERATING RESULTS FOR THE QUARTER COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -9- Net Financial Income and Expense account recorded an expense of CLP 7,418 million, which compares to an expense of CLP 12,554 million in the samequarter of the previous year, mainly as a result of contingency restatements in Brazil last year, which are not present this year. Share of Profit or Loss of Investment in Associates using the Equity Method account went from an CLP 894 million profit to a CLP 1,568 million profit, which ismainly explained by greater net earnings in the equity investee, Sorocaba. Other Income and Expenses account recorded a CLP 4,424 million loss, compared with a CLP 4,897 million loss in the same quarter of the previous year. Results by Adjustment Units and Exchange Rate Differences account went from a CLP 3,006 million loss to a CLP 10,899 million loss. This loss is explainedby a higher inflation recorded this quarter (3.00%) compared to the same quarter of the previous year (1.26%), which has a negative impact on adjusting thedebt that the Company holds in UF. Income Tax went from -CLP 31,932 million to -CLP 7,129 million, which variation is mainly explained by the positive tax effect of the exchange rate difference inChile, as well as by the reversal of a deferred tax liability in Brazil. SUSTAINABILITY To achieve our mission, we have 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 our growth and business sustainability pillars, aligned with our vision and organizational values. In our Integrated Report, which we have published on an annual basis for the last three years, we account for our progress in the ESG triple dimension(Environmental, Social and Corporate Governance) along with the Company’s financial management. To ensure our priorities are current, during the thirdquarter of 2021 we updated our materiality study. The materiality process is a central aspect in the definition of priorities and our approach to the integrationof sustainability, it guides us when prioritizing resources, determining the focus on operations and defining the aspects that we must manage for the purpose ofachieving the greatest impact that allows us to move forward and respond to all our stakeholders. At Coca-Cola Andina we are committed to identifying, managing and disclosing our material issues, as well as the risks and opportunities we recognize. A topicis considered material when its management and/or impacts are relevant to the business and/or influence the decision of stakeholders. 26 sub-material topicsgrouped into 9 categories and 3 dimensions (ASG) stand out: We want to share with you the most relevant material topics for our stakeholders and the evolution of the specific indicators for managing each of them. Itshould be clarified that in the countries in which we operate the definition of the metrics are the same to make them comparable, the differences in the resultsare due not only to differences in the markets but also to structural differences of the businesses and countries, among others. This quarter we present the Energy Management and Climate Protection pillar: COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -10- The efficient use of energy is our responsibility, not only does it generate economic benefits for the Company, but also for the community in general, since itmakes available a scarce and public good resource. At Coca-Cola Andina we are committed to grow in our activities in harmony with the environment, beingproactive and innovative. As we expand the offer of new product categories and increase sales in returnable bottles, the processes require more energyconsumption. The challenge is to increase the share of renewable energy and reduce energy consumption rates, while implementing the "A Total BeverageCompany" strategy. Strategic axes of our energy management: Increasing energy efficiencyOur main indicator (KPI) is the energy ratio (EUR: Energy use ratio), which is the amount of energy needed (including all sources) to produce and package oneliter of beverage. On a consolidated basis, Coca-Cola Andina managed to reduce energy consumption by 6.9% in the last 5 years, achieving the doublechallenge of reducing energy use and growing in returnable packaging and still beverages, both categories with intensive manufacturing processes in terms ofenergy consumption. At the closing of 2021 EUR values are 0.34 Argentina, 0.28 Brazil, 0.23 Chile and 0.48 Paraguay, resulting in a Coca-Cola Andina 2021 total of 0.30 andimproving our performance compared to the previous year. Growth of renewable energy sourcesWe would also like to highlight the increase in the share of renewable energy sources. The two main bottling plants in Chile have certified clean energycontracts; in Brazil, in our Duque de Caxias and Ribeirão Preto plants we have certified clean energy contracts; in the operation in Paraguay, we consumeelectricity from renewable sources (hydroelectric plants) and energy from boilers that use biomass (organic material that we recover from the waste of anotherindustry); in Argentina, the boilers have the possibility of consuming biogas generated in our effluent treatment plant. At the closing of 2021, our share of renewable energy in EUR reached 40.6%, achieving a consolidated growth of 157% in the last 5 years. Emissions reductionDuring 2021 we continue to work to determine the environmental impact of our operations in an integrated manner. Measuring our emissions and calculatingour carbon footprint allows us to focus our efforts and materialize comprehensive action plans. During 2021 we made significant progress in reducing our total emissions, which mainly come from: sugar consumption, PET plastic emissions, electricity (coldequipment and production plants) and fuel consumption for beverage transportation. CONSOLIDATED BALANCE The following are the balances of Assets and Liabilities at the closing dates of these financial statements: 12.31.2020 12.31.2021 Varia onAssetsmillion CLP million CLP million CLPCurrent assets797,298 990,986 193,688Non-current assets1,650,767 1,955,121 304,354Total Assets2,448,064 2,946,107 498,043 12.31.2020 12.31.2021 Varia onLiabili esmillion CLP million CLP million CLPCurrent liabili es378,056 529,567 151,511Non-current liabili es1,238,448 1,315,126 76,678Total Liabili es1,616,504 1,844,693 228,189 12.31.2020 12.31.2021 Varia onEquitymillion CLP million CLP million CLPNon-controlling interests20,379 25,270 4,890Equity a ributable to the owners of the controller811,181 1,076,144 264,963Total Equity831,560 1,101,414 269,854 COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -11- At the closing of December 2021, with regard to the closing of 2020, the Argentine peso depreciated against the Chilean peso by 2.7%, generating a decreasein assets, liabilities and equity accounts due to the effect of translation of figures. On the other hand, at the closing of December 2021, with regard to theclosing of 2020, the Brazilian real and the Paraguayan guarani appreciated against the Chilean peso by 9.6% and 16.0%, respectively, which generated anincrease in assets, liabilities and equity accounts, due to the translation of figures. Assets Total assets increased by CLP 498,043 million, 20.3% compared to December 2020. Current assets increased by CLP 193,688 million, 24.3% compared to December 2020, which is mainly explained by the increase in Trade debtors and othercurrent accounts receivable (CLP 71,469 million), due to the increase in accounts receivable from commercial partners in our subsidiary in Chile (alcoholbusiness), and the increase in inventories (CLP 63,378 million), mainly of raw materials and finished products of alcoholic products in Chile. In addition to theabove increases, there was an increase in Other current financial assets (CLP 55,166 million). Non-current assets increased by CLP 304,354 million, 18.4% compared to December 2020, mainly due to the increase in Other non-current financial assets(CLP 134,619 million) explained by the increase in the mark to market of cross currency swaps of different bonds held by the Company. Added to the aboveincrease is the increase in Property, plant and equipment (CLP 110,803 million), which is explained by the investments made (CLP 141,952 million), mainlyproductive, together with investments in cold equipment and packaging, added to the positive effect of the translation of figures, partially offset by theDepreciation account. Liabilities and Equity Total liabilities increased by CLP 228,189 million, 14.1% compared to December 2020. Current liabilities increased by CLP 151,511 million, 40.1% compared to December 2020, mainly due to the increase in Trade accounts payable and othercurrent accounts payable (CLP 96,963 million), due to the increase in these accounts in local currency in our subsidiaries, due to a year with a higher level ofactivity than 2020, added to the positive effect of the translation of figures of the accounts in our subsidiary in Brazil. In addition to the above increase, therewas an increase in Current tax liabilities (CLP 21,684 million) and an increase in Current accounts payable to related entities (CLP 16,561 million). On the other hand, Non-current liabilities increased by CLP 76,678 million, 6.2% compared to December 2020, mainly due to the increase in Other non-currentfinancial liabilities (CLP 51,219 million) explained by the increase in bond debt due to the UF and USD increase, partially offset by the decrease in liabilitiesfrom the mark to market of the cross currency swaps of the bond placed in the U.S. market in January 2020. Added to the above increase is the increase inDeferred tax liabilities (CLP 14,786 million) explained by (i) the increase in the income tax rate in Argentina (30% to 35%), (ii) lower tax losses in Chile, and(iii) an increase in deferred liabilities for distribution rights and fixed assets, due to currency translation. Equity increased by CLP 269,854 million, 32.5% compared to December 2020, explained by the increase in Retained earnings from profits obtained in theperiod (CLP 154,698 million) and by the restatement of equity balances in our subsidiary in Argentina, in accordance with IAS 29 (CLP 68,577 million), whichwere partially offset by the payment of dividends (-CLP 109,329 million). In addition to the increase in Retained Earnings, there was an increase in Otherreserves (CLP 151,017 million), which increased mainly due to the recognition of hedging derivatives and the positive effect of the translation of figures of ourforeign subsidiaries. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -12- CONSOLIDATED NET FINANCIAL DEBT(million USD)Total Financial Assets924Cash and Cash Equivalent (1)360Other current financial assets (1)230Valuation of Hedge Derivatives333 Financial Debt1,273Bonds on the international market670Bonds on the local market (Chile)569Bank Debt and Others35 Net Financial Debt 348 (1) Financial Assets corresponding to Cash and Cash Equivalents andOther current financial assets are held invested in low-risk instrumentssuch as time deposits, short-term fixed-income mutual funds and others.CURRENCY EXPOSURE (%) Total Financial AssetsFinancial Debt (2)CLP (Chile)33%29%Unidad de Fomento(CLP indexed to inflation)27%41%BRL (Brazil)32%30%PGY (Paraguay)5%0%ARS (Argentina)3%0%USD (United States)1%1%Total 100% 100% (2) Includes the effects of Cross Currency Swaps. RISK RATINGS Local rating agenciesRatingICRAA+Fitch ChileAA+ International rating agenciesRatingStandard & PoorsBBBFitch Ratings, Inc.BBB+DEBT AMORTIZATION PROFILE FINANCIAL ASSETS AND LIABILITIES CASH FLOW 12.31.202012.31.2021 VariationCash flow million CLPmillion CLP million CLP %Operating 278,769305,055 26,286 9.4%Investment -223,879-198,253 25,626 -11.4%Financing 113,041-115,320 -228,360 -202.0%Net Cash Flow for the period 167,931-8,517 -176,448 -105.1% During the present period, the Company generated a negative net cash flow of CLP 8,517 million, which is explained as follows: Operating activities generated a positive net cash flow of CLP 305,055 million, higher than the CLP 278,769 million recorded in the same period of 2020, whichis mainly due to higher collections from sales, partially offset by higher payment to suppliers and employees and income taxes. Investment activities generated a negative cash flow of CLP 198,253 million, with a positive variation of CLP 25,626 million regarding the previous year, whichis mainly explained by lower purchases of financial instruments that are not Cash equivalents, partially offset by increased Capex. Financing activities generated a negative cash flow of CLP 115,320 million, with a negative variation of CLP 228,360 million regarding the previous year, mainlyexplained by the U.S. dollar bond issuance in the United States during 2020, which is not present in 2021. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -13- MAIN INDICATORS INDICATORDefinitionUnitDec 21Dec 20Dec 21 vs Dec 20 LIQUIDITY Current liquidity Current Asset Times1.92.1-11.3% Current Liability Acid ratio Asset – Inventory Times1.51.8-14.7% Current Liability ACTIVITY Investments Million CLP141,95282,65371.7% Inventory turnover Cost of Sales Times8.67.416.1% Average Inventory INDEBETEDNESS Indebtedness ratio Net Financial Debt* Times0.30.5-46.5% Total Equity * Financial expenses coverage Adjusted EBITDA(12M) Times8.28.8-7.0% Financial Expenses* (12M) – Financial Income* (12M) Net financial debt / Adjusted EBITDA Net Financial Debt Times0.71.2-37.5% Adjusted EBITDA (12M) PROFITABILITY On EquityNet Income Fiscal Year (12M)%16.4%13.9%2.5 pp Average Equity On Total AssetsNet Income Fiscal Year (12M)%5.7%5.0%0.7 pp Average Equity Liquidity Current Liquidity showed a negative variation of 11.3% compared to December 2020, explained by the 40.1% increase in current liabilities previouslyexplained, which showed a higher increase than that of current assets (24.3%). The Acid Ratio showed a decrease of 14.7% compared to December 2020, for the reasons explained above, added to the increase in inventories (49.5%) inthe period, due to higher inventories of raw materials and finished products. Current assets excluding inventories showed an increase of 19.5% compared toDecember 2020. Activity At the closing of December 2021, investments reached CLP 141,952 million, which corresponds to an increase of 71.7% compared to the same period of2020, mainly explained by higher productive investments added to investments in cold equipment. Inventory turnover reached 8.6x, showing an increase of 16.1% compared to the same period of 2020, mainly explained by the increase in cost of sales of34.5% compared to the same period of 2020 mentioned above, which was higher than the increase in average inventory (15.9%). Indebtedness Debt ratio reached 0.3x at the closing of December 2021, which is equivalent to a decrease of 46.5% compared to the closing of December 2020. This is dueto the 32.5% increase in total equity, coupled with a decrease in net debt of 29.2%. The Financial Expense Coverage indicator shows a decrease of 7.0% when compared to December 2020, reaching a value of 8.2x. This is explained by theincrease in net financial expenses (12 moving months) of 21.8%, which was higher than the increase in Adjusted EBITDA of 13.3% for the period. Net financial debt/Adjusted EBITDA was 0.7x, which represents a decrease of 37.5% versus December 2020. This is due to the decrease in Net Financial Debtby 29.2% and the increase in Adjusted EBITDA by 13.3% for the period. * Definitions used are contained in the Glossary, on page 18 of this document. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -14- Profitability Profitability on equity reached 16.4%, 2.5 percentage points higher than the indicator measured in December 2020. This result is due to the fact that theincrease in Net Income for the 12 moving months (26.8%) was greater than the increase in average Equity (7.2%). Return on Total Assets was 5.7%, 0.7 percentage points higher than the indicator measured in December 2020, due to the fact that the increase in Net Incomefor the 12 moving months (26.8%) was greater than the increase in average Equity (11.5%). MACROECONOMIC INFORMATION INFLATION Accumulated FY21 LTMArgentina*50.78%50.78%Brazil10.06%10.06%Chile7.20%7.20%Paraguay6.83%6.83% * Official inflation reported by the National Institute of Statistics and Censuses of Argentina (INDEC). It should be mentioned that the inflation used to expressArgentina's figures in accordance with IAS 29 corresponds to inflation estimated by the Central Bank of the Argentine Republic (in its Survey of MarketExpectations report), which is also adjusted for the difference between the estimate (by the Central Bank) and the actual inflation of the previous month(INDEC). EXCHANGE RATES USEDLocal currency/USDCLP/local currency(Average exchange rate)(Average exchange rate *) 4Q204Q214Q204Q21Argentina80.1100.58.48.2Brazil5.405.58140.96147.91Chile761826N.AN.AParaguay7,0036,8620.110.12*Except Argentina, where the closing exchange rate is used, in accordance with IAS 29. EXCHANGERATES USEDLocal currency/USDCLP/local currency(Average exchange rate)(Average exchange rate *) FY20FY21FY20FY21Argentina70.695.18.48.2Brazil5.165.40153.61140.80Chile792760N.AN.AParaguay6,7736,7780.120.11*Except Argentina, where the closing exchange rate is used, in accordance with IAS 29. MARKET RISK ANALYSIS The Company’s risk management is the responsibility of the office of the Chief Executive 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 mainrisks that the Company has identified and that could possibly affect the business are as follows: Relationship with The Coca-Cola CompanyA 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 exertan important influence on the business through its rights under the Licensing or Bottling Agreements. In addition, we depend on The Coca-Cola Company torenew these Bottling Agreements. Non-alcoholic beverage business environmentConsumers, public health officials, and government officials in our markets are increasingly concerned about the public health consequences associated withobesity, which can affect demand for our products, especially those containing sugar. The Company has developed a large portfolio of sugar-free products and has also made reformulations to some of its sugary products, significantly reducingsugar contents of its products. Raw material prices and exchange rateMany raw materials are used in the production of beverages and packaging, including sugar and PET resin, the prices of which may present great volatility. Inthe case of sugar, the Company sets the price of a part of the volume that it consumes with some anticipation, in order to avoid having large fluctuations of costthat cannot be anticipated. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -15- In addition, these raw materials are traded in dollars; the Company has a policy of hedging in the futures market a portion of the dollars it uses to buy rawmaterials. Instability in the supply of utilities and raw materialsIn the countries in which we operate, our operations depend on a stable supply of utilities, fuel and raw materials. Power outages or water shut offs as well asthe lack of raw materials may result in interruptions of our production. The Company has mitigation plans to reduce the effects of eventual interruptions in thesupply of utilities and raw materials. Economic conditions of the countries where we operateThe Company maintains operations in Argentina, Brazil, Chile and Paraguay. The demand for our products largely depends on the economic situation of thesecountries. Moreover, economic instability can cause depreciation of the currencies of these countries, as well as inflation, which may eventually affect theCompany’s financial situation. New tax laws or modifications to tax incentivesWe cannot ensure that any government authority in any of the countries in which we operate will not impose new taxes or increase existing taxes on our rawmaterials, products or containers. Likewise, we cannot assure that these authorities are going to uphold and/or renew tax incentives that currently benefit someof our operations. A devaluation of the currencies of the countries where we have our operations, regarding the Chilean peso, can negatively affect the resultsreported by the Company in Chilean pesosThe 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 negative effect on the results of the Company, upon the translation of results intoChilean pesos. The imposition of exchange controls could restrict the entry and exit of funds to and from the countries in which we operate, which couldsignificantly limit our financial capacityThe imposition of exchange controls in the countries in which we operate could affect our ability to repatriate profits, which could significantly limit our ability topay dividends to our shareholders. Additionally, it may limit the ability of our foreign subsidiaries to finance payments of U.S. dollar denominated liabilitiesrequired by foreign creditors. Civil unrest in Chile could have a material adverse effect on general economic conditions in Chile and our business and financial conditionSince October 18, 2019, there have been protests and demonstrations in Chile, seeking to reduce inequality, including claims about better pensions,improvement in health plans and reduced health care costs, reduction in the cost of public transportation, better wages, among others. Sometimesdemonstrations have been violent, causing damage 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 responseto the civil unrest will have a negative impact on the Chilean economy and our business. Neither can we assure that demonstrations and vandalism will notcause damage to our logistics and production infrastructure. So far, the Company has not been affected in any material respect. Our business is subject to risks arising from the COVID-19 pandemicThe COVID-19 pandemic has resulted in the countries where we operate taking extraordinary measures to contain the spread of COVID-19, including travelrestrictions, closing borders, restrictions or bans on social gathering events, instructions to citizens to practice social distancing, non-essential businessclosure, quarantine implementation, and other similar actions. The impact of this pandemic has substantially increased uncertainty regarding the developmentof economies and is most likely to cause a global recession. We cannot predict how long this pandemic will last, or how long the restrictions imposed by thecountries 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 operations.There is a risk that our collaborators, contractors and suppliers may be restricted or prevented from carrying out their activities for an indefinite period of time,including due to shutdowns mandated by the authorities. Although our operations have not been materially disrupted to date, eventually the pandemic and themeasures taken by governments to contain the virus could affect the continuity of our operations. In addition, some measures taken by governments havenegatively affected some of our sales channels, especially the closing of restaurants and bars, as well as the prohibition of social gathering events, whichaffects 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, norwhether these channels will recover once the pandemic is over. Nor can we predict how long our consumers will change their consumer spending pattern as aresult of the pandemic.Additionally, a possible outbreak of other epidemics in the future, such as SARS, Zika or the Ebola virus, could also result in a similar impact on our businessthan COVID-19. A more detailed analysis of business risks is available in the Company’s 20-F and Annual Report, available on our website. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -16- RECENT EVENTS Interim Dividends 219 and 220On October 29, 2021, the Company paid Interim Dividend 219: CLP 29.0 for each Series A share; and CLP 31.9 for each Series B share. The Shareholders'Register for payment of this dividend closed on October 23, 2021. Also, on December 22, 2021, the Company announced the payment of Interim Dividend220: CLP 29.0 for each Series A share; and CLP 31.9 for each Series B share. This dividend was paid on January 28, 2022. Both dividends were paid out ofresults of the Fiscal Year 2021, as authorized at the General Shareholders' Meeting held on April 15, 2021. Improvement in the risk rating of local debt by ICR ChileOn October 1, through a press release, ICR Chile reported that it upgraded the risk rating of the Company's local debt to AA+ from AA, with a stable outlook.They based their report on the financial strengthening of the Company, reflected in a continuous decrease in its indicators of net financial indebtedness and netfinancial debt over EBITDA. In addition, they emphasized the high level of liquidity that the Company has, as well as the resilience of its results amidst thepandemic. Bondholders' MeetingsOn November 11, 2021, bondholders' meetings were held for the series C, D, E and F bonds issued in the local market under the lines registered in theSecurities Registry of the CMF under No. 641 (Series C), No. 760 (Series D and E) and No. 912 (Series F), and for the series B bonds corresponding to thefixed amount issue registered in the Securities Registry of the CMF under No. 254. As a result of the aforementioned bondholders' meetings, the issuancecontracts of the aforementioned bond issues were amended. In this respect, amendments were made to the financial indebtedness covenant that existed in theaforementioned issuance contracts, to be replaced by a new indebtedness level obligation defined as follows:Indebtedness Level: to maintain an Indebtedness Level, measured and calculated quarterly on the Issuer’s Consolidated Financial Statements, presented inthe form and terms determined by Chile’ Financial Market Commission, no greater than three point five times (3.5x). COVID-19 impact on our businessDue 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 thenecessary actions to protect its collaborators and ensure the operational continuity of the Company.Among the measures that have been taken to protect its collaborators are:●Education campaign addressed to our employees on measures to be taken to prevent the spread of COVID-19.●Every collaborator 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:oWe have proceeded to work from home in all positions where it is possible.●Provide personal protection equipment to all our collaborators who must continue to work in plants and distribution centers, as well as truck driversand helpers, including masks and alcohol gel.●We developed a plan to promote and facilitate the voluntary vaccination of our employees and direct third party employees, carrying out a weeklymonitoring of the evolution of the vaccination status at a regional level.●In our production plants and distribution centers, we established a preventive protocol for the application of PCR tests and COVID-19 antigens, inorder to detect and isolate infected people and identify close contacts. Since mid-March last year, the governments of the countries where the Company operates have taken a number of steps to reduce the infection rate ofCOVID-19. These measures include the partial or total closing of schools, universities, restaurants and bars, malls, the prohibition of social gathering events,sanitary controls and health check points, and in some cases, total or partial quarantines for a part of the population. Governments in the countries where weoperate have also announced economic stimulus measures for families and businesses, including restrictions on dismissals of workers in Argentina. To date,none of our plants have had to suspend their operations. As a result of the COVID-19 pandemic and the restrictions imposed and eliminated by the authorities in the four countries where we operate, we have seengreat volatility in our sales across channels. During this quarter, at the consolidated level, we did not see relevant changes in the relative participation of oursales channels regarding the previous quarter. Because the pandemic and the measures governments take are changing very rapidly, we believe it is too earlyto draw conclusions about changes in the long-term consumption pattern, and how these may affect our operating and financial results in the future. Due to the uncertainty regarding the evolution of the COVID-19 pandemic and the aforementioned 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 situation.However, we consider that the Company will have no liquidity problems. To date, we do not anticipate significant provisions or write-offs. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -17- GLOSSARY Adjusted EBITDA: includes Revenue, Costs of Sales, Distribution Costs and Administrative Expenses, included in the Financial Statements submitted toChile’s Financial Market Commission and determined in accordance with IFRS, plus Depreciation. Currency-neutral of a quarter q for a Q year is calculated using the same ratio of local currencies to the Chilean peso as the q quarter of the Q-1 year. In thecase of Argentina, given that it is a hyperinflationary economy, the result of the q quarter is also deflated by inflation of the last 12 months. Financial Expenses: correspond to interest generated by the Company’s financial debt. Net Financial Debt: considers the consolidated financial liability that accrues interest, i.e.: (i) other current financial liabilities, plus (ii) other non-currentfinancial liabilities, less (iii) the sum of cash and cash equivalent; plus other current financial assets; plus other non-current financial assets (to the extent thatthey correspond to the balances of assets for derivative financial instruments, taken to cover exchange rate risk and/or interest rate of financial liabilities). Operating Income: includes Revenue, Costs of Sales, Distribution Costs and Administrative Expenses, included in the Financial Statements submitted toChile Financial Market Commission and determined in accordance with IFRS. Total Equity: corresponds to the equity attributable to the owners of the controller plus non-controlling interests. Transactions: refers to the number of units sold, regardless of size. Volume: expressed in Unit Cases (UCs), which is the conventional measurement used to measure sales volume in the Coca-Cola System worldwide. ADDITIONAL INFORMATION STOCK EXCHANGES WE TRADE ON ANDINA-AANDINA-B AKO/AAKO/B ESG INDICES IN WHICH WE PARTICIPATE Dow Jones Sustainability Index ChileDow Jones Sustainability MILA Pacific AllianceIndex. NUMBER OF SHARES TOTAL: 946,570,604SERIES A: 473,289,301SERIES B: 473,281,303SHARES PER ADR: 6 ABOUT COCA-COLA ANDINACoca-Cola Andina is among the three largest Coca-Cola bottlers in Latin America, servicing franchised territories with almost 55.3 million people, delivering828.3 million unit cases or 4,703 million liters of soft drinks, juices, bottled water, beer and other alcoholic beverages during 2021. Coca-Cola Andina has thefranchise to produce and commercialize Coca-Cola products in certain territories in Argentina (through Embotelladora del Atlántico), in Brazil (through Rio deJaneiro Refrescos), in Chile, (through Embotelladora Andina) and in all of Paraguay (through Paraguay Refrescos). The Chadwick Claro, Garcés Silva, SaidHandal and Said Somavía families control Coca-Cola Andina COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -18- in equal parts. 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 itoperates and with its strategic partner The Coca-Cola Company, in order to increase ROIC for shareholders in the long term. For more company informationvisit www.koandina.com. This document may contain projections reflecting Coca-Cola Andina’s good faith expectation and are based on currently available information. However, the results that are finally obtained are subject to diverse variables, many of which arebeyond the Company's control, and which could materially impact the current performance. Among the factors that could change the performance are the political and economic conditions on mass consumption, pricing pressures resultingfrom competitive discounts of other bottlers, weather conditions in the Southern Cone and other risk factors that would be applicable from time to time, and which are periodically informed in reports filed before the appropriate regulatoryauthorities, and which are available on our website. COCA-COLA ANDINA4Q21 EARNINGS RELEASEwww.koandina.com -19- Embotelladora Andina S.A.Fourth Quarter Results for the period ended December 31, 2021. Reported figures, IFRS GAAP.(In nominal million Chilean pesos, except per share) October-December 2021 October-December 2020 Chilean Operations Brazilian Operations Argentine Operations Paraguay Operations Total (1) Chilean Operations Brazilian Operations Argentine Operations Paraguay Operations Total (1) % Ch. Volume total beverages (Million UC) 91.3 71.0 56.5 21.3 240.1 76.6 78.6 52.1 20.6 227.8 5.4%Transactions (Million) 525.7 389.4 259.5 122.2 1,296.9 381.0 461.5 216.1 106.9 1,165.5 11.3% Net sales 299,429 130,601 166,200 56,474 651,498 217,378 160,725 100,970 45,982 524,363 24.2%Cost of sales (194,884) (77,413) (92,638) (30,588) (394,318) (134,352) (101,444) (53,624) (24,720) (313,449) 25.8%Gross profit 104,546 53,187 73,562 25,886 257,180 83,026 59,281 47,346 21,262 210,915 21.9%Gross margin 34.9% 40.7% 44.3% 45.8% 39.5% 38.2% 36.9% 46.9% 46.2% 40.2% Distribution and administrative expenses (56,511) (29,338) (59,603) (9,457) (154,908) (38,885) (25,701) (36,700) (6,994) (108,280) 43.1% Corporate expenses (2) (2,038) (1,731) 17.7%Operating income (3) 48,035 23,849 13,959 16,429 100,235 44,141 33,580 10,646 14,269 100,904 -0.7%Operating margin 16.0% 18.3% 8.4% 29.1% 15.4% 20.3% 20.9% 10.5% 31.0% 19.2% Adjusted EBITDA (4) 57,651 30,141 22,831 19,165 127,751 60,782 39,609 17,140 16,810 132,610 -3.7%Adjusted EBITDA margin 19.3% 23.1% 13.7% 33.9% 19.6% 28.0% 24.6% 17.0% 36.6% 25.3% Financial (expenses) income (net) (7,418) (12,554) -40.9%Share of (loss) profit of investments accounted for using the equity method 1,568 894 75.4%Other income (expenses) (5) (4,424) (4,897) -9.7%Results by readjustement unit and exchange rate difference (10,899) (3,006) 262.6% Net income before income taxes 79,061 81,341 -2.8% Income tax expense (7,129) (31,932) -77.7% Net income 71,932 49,409 45.6% Net income attributable to non-controlling interests (274) (461) -40.4%Net income attributable to equity holders of the parent 71,658 48,948 46.4%Net margin 11.0% 9.3% WEIGHTED AVERAGE SHARES OUTSTANDING 946.6 946.6 EARNINGS PER SHARE 75.7 51.7 EARNINGS PER ADS 454.2 310.3 46.4% (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 theChilean 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 theChilean 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 FinancialMarket Comission: "Other income", "Other expenses" and "Other (loss) gains". Embotelladora Andina S.A. Twelve Months Results for the period ended December 31, 2021. Reported figures, IFRS GAAP. (In nominal million Chilean pesos, except per share) January-December 2021 January-December 2020 Chilean Operations Brazilian Operations Argentine Operations Paraguay Operations Total (1) Chilean Operations Brazilian Operations Argentine Operations Paraguay Operations Total (1) % Ch. Volume total beverages (Million UC) 307.0 266.4 184.7 70.3 828.3 236.3 265.1 166.7 66.4 734.6 12.8%Transactions (Million) 1,724.5 1,584.3 825.3 396.1 4,530.2 1,104.2 1,579.5 688.7 345.7 3,718.1 21.8% Net sales 975,296 539,257 536,955 169,216 2,216,733 644,762 580,063 318,828 157,153 1,698,281 30.5%Cost of sales (630,862) (361,323) (296,090) (91,109) (1,375,393) (392,720) (373,445) (172,066) (86,792) (1,022,499) 34.5%Gross profit 344,434 177,934 240,865 78,107 841,340 252,041 206,618 146,762 70,361 675,783 24.5%Gross margin 35.3% 33.0% 44.9% 46.2% 38.0% 39.1% 35.6% 46.0% 44.8% 39.8% Distribution and administrative expenses (209,202) (108,592) (190,538) (34,177) (542,509) (160,876) (117,623) (120,729) (31,516) (430,744) 25.9% Corporate expenses (2) (6,393) (5,427) 17.8%Operating income (3) 135,232 69,342 50,327 43,929 292,438 91,166 88,995 26,032 38,845 239,612 22.0%Operating margin 13.9% 12.9% 9.4% 26.0% 13.2% 14.1% 15.3% 8.2% 24.7% 14.1% Adjusted EBITDA (4) 173,422 92,990 83,191 54,004 397,213 141,437 116,335 48,928 49,259 350,532 13.3%Adjusted EBITDA margin 17.8% 17.2% 15.5% 31.9% 17.9% 21.9% 20.1% 15.3% 31.3% 20.6% Financial (expenses) income (net) (45,201) (39,827) 13.5%Share of (loss) profit of investments accounted for using the equity method 3,093 2,229 38.8%Other income (expenses) (5) (13,874) (9,074) 52.9%Results by readjustement unit and exchange rate difference (33,247) (14,917) 122.9% Net income before income taxes 203,209 178,023 14.1% Income tax expense (46,177) (54,905) -15.9% Net income 157,032 123,117 27.5% Net income attributable to non-controlling interests (2,334) (1,118) 108.8%Net income attributable to equity holders of the parent 154,698 122,000 26.8%Net margin 7.0% 7.2% WEIGHTED AVERAGE SHARES OUTSTANDING 946.6 946.6 EARNINGS PER SHARE 163.4 128.9 EARNINGS PER ADS 980.6 773.3 26.8% (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 theChilean 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 theChilean 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 FinancialMarket Comission: "Other income", "Other expenses" and "Other (loss) gains". Embotelladora Andina S.A. Fourth Quarter Results for the period ended December 31, 2021. (In local nominal currency of each period, except Argentina (3)) October-December 2021 October-December 2020 Chile MillionCh$ Brazil MillionR$ Argentina (3)Million AR$ Paraguay Million G$ Chile MillionCh$ Brazil MillionR$ Argentina (3)Million AR$ Paraguay Million G$ Nominal Nominal IAS29 Nominal Nominal Nominal IAS 29 Nominal Total beverages volume (Million UC) 91.3 71.0 56.5 21.3 76.6 78.6 52.1 20.6 Transactions (Million) 525.7 389.4 259.5 122.2 381.0 461.5 216.1 106.9 Net sales 299,429 881.4 20,211.0 467,140 217,378 1,139.3 17,951.4 424,089 Cost of sales (194,884) (522.7) (11,265.4) (254,197) (134,352) (719.0) (9,533.8) (227,914)Gross profit 104,546 358.7 8,945.6 212,944 83,026 420.3 8,417.6 196,175 Gross margin 34.9% 40.7% 44.3% 45.6% 38.2% 36.9% 46.9% 46.3%Distribution and administrative expenses (56,511) (198.1) (7,248.1) (77,650) (38,885) (182.6) (6,524.9) (64,306) Operating income (1) 48,035 160.6 1,697.5 135,293 44,141 237.7 1,892.7 131,869 Operating margin 16.0% 18.2% 8.4% 29.0% 20.3% 20.9% 10.5% 31.1%Adjusted EBITDA (2) 57,651 203.2 2,776.5 157,978 60,782 280.5 3,047.3 155,286 Adjusted EBITDA margin 19.3% 23.1% 13.7% 33.8% 28.0% 24.6% 17.0% 36.6% (1) Operating Income considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with theChilean 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 theChilean Financial Market Comission and determined in accordance to IFRS, plus Depreciation.(3) Argentina 2021 figures are presented in accordance to IAS 29, in December 2021 currency. 2020 figures are also presented in accordance to IAS 29, inDecember 2021 currency. Embotelladora Andina S.A. Twelve Months Results for the period ended December 31, 2021. (In local nominal currency of each period, except Argentina (3)) January-December 2021 January-December 2020 Chile MillionCh$ Brazil Million R$ Argentina (3)Million AR$ Paraguay Million G$ Chile MillionCh$ Brazil Million R$ Argentina (3)Million AR$ Paraguay Million G$ Nominal Nominal IAS29 Nominal Nominal Nominal IAS 29 Nominal Total beverages volume (Million UC) 307.0 266.4 184.7 70.3 236.3 265.1 166.7 66.4 Transactions (Million) 1,724.5 1,584.3 825.3 396.1 1,104.2 1,579.5 688.7 345.7 Net sales 975,296 3,833.5 65,297.4 1,497,924 644,762 3,757.6 56,684.0 1,351,909 Cost of sales (630,862) (2,571.3) (36,006.6) (807,404) (392,720) (2,417.8) (30,591.4) (745,803)Gross profit 344,434 1,262.2 29,290.8 690,520 252,041 1,339.8 26,092.7 606,106 Gross margin 35.3% 32.9% 44.9% 46.1% 39.1% 35.7% 46.0% 44.8%Distribution and administrative expenses (209,202) (770.8) (23,170.7) (303,689) (160,876) (753.4) (21,464.4) (268,519) Operating income (1) 135,232 491.3 6,120.1 386,831 91,166 586.4 4,628.3 337,587 Operating margin 13.9% 12.8% 9.4% 25.8% 14.1% 15.6% 8.2% 25.0%Adjusted EBITDA (2) 173,422 659.0 10,116.6 476,646 141,437 763.2 8,698.8 426,706 Adjusted EBITDA margin 17.8% 17.2% 15.5% 31.8% 21.9% 20.3% 15.3% 31.6% (1) Operating Income considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with theChilean 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 theChilean Financial Market Comission and determined in accordance to IFRS, plus Depreciation.(3) Argentina 2021 figures are presented in accordance to IAS 29, in December 2021 currency. 2020 figures are also presented in accordance to IAS 29, inDecember 2021 currency. Embotelladora Andina S.A. Consolidated Balance Sheet(In million Chilean pesos) Variation % ASSETS 12-31-2021 12-31-2020 12-31-2020 Cash + Time deposits + market. Securit. 499,783 449,836 11.1%Account receivables (net) 274,910 205,897 33.5%Inventories 191,350 127,973 49.5%Other current assets 24,943 13,593 83.5%Total Current Assets 990,986 797,298 24.3% Property, plant and equipment 1,677,828 1,398,055 20.0%Depreciation (961,449) (792,479) 21.3%Total Property, Plant, and Equipment 716,379 605,576 18.3% Investment in related companies 91,489 87,956 4.0%Goodwill 118,043 98,326 20.1%Other long term assets 1,029,209 858,908 19.8%Total Other Assets 1,238,741 1,045,190 18.5% TOTAL ASSETS 2,946,107 2,448,064 20.3% Variation % LIABILITIES & SHAREHOLDERS' EQUITY 12-31-2021 12-31-2020 12-31-2020 Short term bank liabilities 27 799 -96.7%Current portion of bonds payable 25,383 18,705 35.7%Other financial liabilities 22,353 19,063 17.3%Trade accounts payable and notes payable 383,513 269,988 42.0%Other liabilities 98,292 69,502 41.4%Total Current Liabilities 529,567 378,056 40.1% Long term bank liabilities 4,000 4,000 0.0%Bonds payable 1,020,662 918,921 11.1%Other financial liabilities 16,387 66,908 -75.5%Other long term liabilities 274,077 248,618 10.2%Total Long Term Liabilities 1,315,126 1,238,448 6.2% Minority interest 25,270 20,379 24.0% Stockholders' Equity 1,076,144 811,181 32.7% TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2,946,107 2,448,064 20.3% Financial Highlights(In million Chilean pesos) Accumulated ADDITIONS TO FIXED ASSETS 12-31-2021 12-31-2020 Chile 57,245 26,488 Brazil 30,882 19,138 Argentina 31,723 16,508 Paraguay 22,102 20,519 Total 141,952 82,653 MATERIAL EVENTS
Material events reported for period from January 1 through December 31, 2021
1.- On February 24, 2021, the CMF° was informed of the following:
At a Company's Regular Board of Directors’ Meeting held on February 23, 2021, it was agreed, among other
matters, to appoint Ms. Carmen Román Arancibia as a director of the Company until the next General
Shareholders' Meeting, where the Board of Directors will be renewed in its entirety.
2.- On February 24, 2021, the CMF was informed of the following:
The following was resolved, among other matters, at a Company's Regular Board of Directors’ Meeting held
on February 23, 2021:
I.
II.
To convene a General Shareholders’ Meeting (the "Meeting") for April 15, 2021, at 10:00 a.m., which
will be conducted remotely in accordance with the provisions of General Rule No. 435 and Circular
No. 1141.
The following matters will be discussed at the General Shareholders’ Meeting:
1)
The Annual Report, Balance and Financial Statements for the year 2020; as well as the Report
of Independent Auditors with respect to the Financial Statements;
2)
Earnings distribution and dividend payments;
3) Present Company dividend distribution policy and inform about the distribution and payment
procedures utilized;
4)
To renew the Board of Directors in its entirety;
5) Determine the compensation for directors, Directors' Committee members pursuant to
article 50 bis of Chilean Corporation's Law and of the members of the Audit Committee
required by Sarbanes & Oxley Act of the United States; their annual reports and expenses
incurred by both Committees;
6) Appoint the Company’s Independent auditors for the year 2021;
7) Appoint the Company’s rating agencies for the year 2021;
8) Report on Board agreements which took place after that last Shareholders’ Meeting,
relating to operations referred to by article 146 and following of Chilean Corporation's Law;
9) Determine the newspaper where regular and special shareholder meetings notices and
invitations shall be published; and
10) In general, to resolve every other matter under its competency and any other matter of
Company interest.
III.
Propose to Shareholders the distribution of a Final Dividend charged against 2020 fiscal year, for the
following amounts:
a)
b)
Ch$26.00 (Twenty-six and 0/100 Chilean Pesos) per Series A Shares and;
Ch$28.60 (Twenty-eight and 60/100 Chilean Pesos) per Series B Shares.
If the Shareholders’ Meeting approves payment of these dividends, they will be paid beginning on
May 28, 2021. The Shareholders’ Registry would close on the fifth business day prior to the payment
date, for payment of these dividends.
Propose to the Shareholders’ Meeting the distribution of an Additional Dividend on account of
accumulated earnings, for the following amounts:
a) Ch$26.00 (Twenty-six and 0/100 Chilean Pesos) per Series A Shares and;
b) Ch$28.60 (Twenty-eight and 60/100 Chilean Pesos) per Series B Shares.
If the Shareholders’ Meeting approves payment of these additional dividends, they will be paid
beginning on August 27, 2021. The Shareholders' Registry would close on the fifth business day
prior to the payment date, for payment of these dividends.
3.- On March 8, 2021, the CMF was informed of the following:
On November 2, 2020, Andina informed as a material event that Envases CMF S.A. (“CMF”), a closed stock
company, owned in its 50% by the Company, and Fábrica de Envases Plásticos S.A. (“Plasco”), a closed stock
company, subsidiary of Compañía Cervecerías Unidas S.A., executed a Memorandum of Understanding (the
“MOU”) settling forth the preliminary terms and conditions for the incorporation of a new company, which
ownership was to be equally divided between CMF and Plasco, and which purpose would have been the
production and commercialization of post-consumer PET resin in Chile (the “Transaction”).
As of March 8, CMF and Plasco have decided not to proceed with the Transaction, and, accordingly, have
subscribed an agreement by virtue of which, by mutual consent, they agree to effectively terminate the MOU,
granting each other the broadest release from any and all obligations arising from the MOU.
4.- On April 16, 2021, the CMF was informed of the following:
The following resolutions were adopted at the General Shareholders’ Meeting of Embotelladora Andina S.A.
held on April 15, 2021, among others:
1) The approval of the Annual Report, Statements of Financial Position and Financial Statements for the
year 2020; as well as the Report of Independent Auditors with respect to the previously mentioned
Financial Statements;
2) The approval of earnings distribution and dividend payments;
3) The approval of Company dividend distribution policy and the distribution and payment procedures
utilized;
4) To renew the Board of Directors in its entirety, being composed by the following members:
SERIES A:
Marco Antonio Araujo
Eduardo Chadwick Claro
Juan Claro González
Domingo Cruzat Amunátegui (Independent)
José Antonio Garcés Silva
Roberto Mercadé
Gonzalo Parot Palma (Independent)
Carmen Román Arancibia
Mariano Rossi
Gonzalo Said Handal
Salvador Said Somavía
Rodrigo Vergara Montes
SERIES B:
Georges de Bourguignon Arndt
Felipe Joannon Vergara
5) The approval of compensation for Directors and members of the Ethics’ Committee, the Directors’
Committee pursuant to article 50 bis of the Chilean Corporate Law and members of the Audit
Committee established pursuant to the Sarbanes-Oxley Act; their annual report and incurred
expenses;
6) The appointment of EY Servicios Profesionales de Auditoría y Asesorías SpA as the Company’s
independent auditors for the year 2021;
7) The appointment of Fitch Chile Clasificadora de Riesgo Limitada and International Credit Rating
Clasificadora de Riesgo Limitada as the Company's local rating agencies and Fitch Ratings, Inc., and
S&P Global Ratings as the Company's international rating agencies, for the year 2021;
8) The approval of the report on Board agreements in accordance with articles 146 and forward of
Chilean Corporate Law, regarding operations that took place after the last General Shareholders’
Meeting; and,
9) The appointment of Diario Financiero, as the newspaper where Company notices and shareholders'
meetings announcements should be published.
Regarding number 2 above, the Shareholders' Meeting approved payment of a Final Dividend on account of
2020 Fiscal Year and an Additional dividend on account of retained earnings in the following amounts:
Final Dividend
a) Ch$26.00 (Twenty-six and 0/100 Chilean Pesos) per Series A Shares and;
b) Ch$28.60 (Twenty-eight and 60/100 Chilean Pesos) per Series B Shares.
Payment of this final dividend will be available beginning May 28, 2021. The Shareholders’ Registry will close
on the fifth business day prior to payment date.
Additional Dividend
a) Ch$26.00 (Twenty-six and 0/100 Chilean Pesos) per Series A Shares and;
b) Ch$28.60 (Twenty-eight and 60/100 Chilean Pesos) per Series B Shares.
Payment of this additional dividend will be available beginning August 27, 2021. The Shareholders’ Registry
will close on the fifth business day prior to payment date.
5.- On April 28, 2021, the CMF was informed of the following:
At Board session of the Company held on April 27, 2021, the following was agreed:
1. Appoint Mr. Juan Claro González as Chairman of the Board of Directors and Mr. Salvador Said Somavía as
Vice Chairman of the Board.
2. Appoint Mr. Gonzalo Parot Palma and Mr. Domingo Cruzat Amunátegui, as Independent directors, and
Mr. Salvador Said Somavía as members of the Directors’ Committee established by article 50 bis of the
Chilean Corporate Law.
6.- On August 19, 2021, the CMF was informed of the following:
Andina together with Coca Cola Embonor S.A. (the “Distributors”), have subscribed a Distribution Agreement
with Sociedad Anónima Viña Santa Rita (hereinafter, the “Agreement”) by virtue of which both companies will
assume the sale, commercialization and distribution of certain Sociedad Anónima Viña Santa Rita products, in
certain regions of the country.
The subscription of the Agreement is part of the Company´s growth and product portfolio diversification
strategy that started in 2018, by joining the commercialization and distribution of alcoholic beverages.
Among the brands of Sociedad Anónima Viña Santa Rita products to be distributed by Andina in the regions
of Antofagasta, Atacama, Coquimbo, Metropolitan, Aysén del General Carlos Ibáñez del Campo and
Magallanes and the Chilean Antarctic, as well as in the provinces of Cachapoal and San Antonio, are Casa Real,
Medalla Real, Carmen and 120, among others.
Although it is not possible at this time to anticipate the incremental volume that this transaction will generate,
it is reported that in 2020 the sales volumes of the products included in the Agreement, in the territory where
they will be commercialized by Andina, reached approximately 6.3 million unit cases, with sales of
approximately Ch$39,000 million.
The execution of the Agreement is part of the growth and diversification strategy of the Company's product
portfolio initiated in 2018, through the entry into the marketing and distribution of alcoholic beverages.
The Agreement will have a 5-year duration starting on November 2, 2021, date on which the provision of the
services must have started. This term will be renewable under the terms and conditions established in the
Agreement.
7.- On September 29, 2021, the CMF was informed of the following:
Interim Dividend
As authorized at the General Shareholders' Meeting held on April 15 of this year, the Board of Directors of the
Company, at its meeting held on September 28, 2021, resolved to distribute the following amounts as interim
dividend:
(a) Ch$29.00 (Twenty-nine and 0/100 Chilean pesos) per each Series A share; and,
(b) Ch$31.9 (Thirty-one and 09/100 Chilean pesos) for each Series B share.
This dividend will be paid out of earnings from the Fiscal Year 2021, and will be available to shareholders as
of October 29, 2021, and the Shareholders’ Registry will close on the fifth business day prior to payment date.
8.- On November 11, 2021, the CMF was informed of the following:
On this date, the following bondholders’ s meetings (the "Meetings") were held, through electronic means,
pursuant to the bond issuance agreements indicated below (the "Agreements"):
(a) Series B bondholders' meeting, including their respective sub-series B-1 and B-2, pursuant to the bond
issuance agreement registered in the Securities Register kept by this Commission under registry number 254;
(b) Series C bondholders' meeting, pursuant to the bond issuance agreement registered in the Securities
Registry kept by this Commission under registry number 641;
(c) Series D bondholders' meeting, pursuant to the bond issuance agreement registered in the Securities
Registry kept by this Commission under registry number 760;
(d) Series E bondholders' meeting, pursuant to the bond issuance agreement registered in the Securities
Registry kept by this Commission under registry number 760; and
(e) Series F bondholders' meeting, pursuant to the bond issuance agreement registered in the Securities
Registry kept by this Commission under registry number 912.
At the aforementioned Meetings the respective bondholders approved, among other matters, to amend the
Agreements with respect to the Issuer's obligation to maintain a certain level of indebtedness, replacing this
obligation for a new obligation of maintaining a level of indebtedness no greater than 3.5 times, defined as
the ratio between: (a) the average of the consolidated net financial debt, calculated over the last four
"Consolidated Financial Statements of Financial Position" contained in the Issuer's Consolidated Financial
Statements that were submitted to the Commission by the Issuer as of the calculation date; and (b) the
accumulated EBITDA of the consecutive twelve-month period ending at the close of the last of the
"Consolidated Financial Statements of Income by Function" (contained in the Consolidated Financial
Statements that were submitted to the Commission by the Issuer as of the calculation date.
9.- On December 22, 2021, the CMF was informed of the following:
Interim Dividend
As authorized at the General Shareholders' Meeting held on April 15 of this year, the Board of Directors of the
Company, at its meeting held on December 21, 2021, resolved to distribute the following amounts as interim
dividend:
(a) Ch$29.00 (Twenty-nine and 0/100 Chilean pesos) per each Series A share; and,
(b) Ch$31.9 (Thirty-one and 9/100 Chilean pesos) for each Series B share.
This dividend will be paid out of earnings from the Fiscal Year 2021, and will be available to shareholders as
of January 28, 2022, and the Shareholders’ Registry will close on the fifth business day prior to payment date.
_______________________
°CMF (Chilean Financial Market Commission)
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GENERAL CONTENTS
ORGANIZATIONAL PROFILE
GRI Code
Content
GRI 102-1
Name of the organization
Integrated Report
Reference
Response
Reference Page
Principles
Chapter 1
Chapter 2
Corporate name: Embotelladora Andina S.A.
Type of corporation: Open stock corporation.
Legal address: Miraflores 9153, comuna de
Renca, Santiago.
Rol Único Tributario (Chilean Tax ID No.): 91.144 .000-8.
p.4, p.23
GRI 102-2
a. Description of the activities of the
organization
b. Principal brands, products and
services
Chapter 1
Chapter 3
Chapter 8
GRI 102-3
Location of headquarters
Chapter 1
GRI 102-4
Chapter 1
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
GRI 102-5
Ownership and legal form
Chapter 1
Activities: on page 1 and in the Notes to the Financial
Statements. Brands, products and services: pages 32, 108,
109, 113 and 114.
p.4, p.6, p.29, p.122
Corporate office
Av. Miraflores 9153, Piso 7, Renca, Santiago de Chile.
p.4
Argentina: Ruta Nacional 19, Km 3,7, Córdoba.
Brazil: Rua André Rocha 2299, Taquara, Jacarepaguá, Rio
de Janeiro.
Chile: Miraflores 9153, Renca, Santiago.
Paraguay: Acceso Sur, Ruta Ñemby, Km 3,5 -Barcequillo-,
San Lorenzo, Asunción.
p4 p12 p14 p15
p.4
Type of Company: Open Stock Corporation. In addition,
the Company's shares are traded on the Santiago Stock
Exchange. In addition, the Company's shares are traded on
the Santiago Electronic Exchange. The registration number
in the CMF Securities Register is 00124. The mnemonics
code, both for the Santiago Stock Exchange and for the
Electronic Exchange, are Andina-A and Andina-B, each
corresponding to the respective series of shares. The
Company's ADRs have been traded on the New York Stock
Exchange since 1994. One 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 1
Chapter 8
-
p.4, p.12, p.14, p.15, p.128
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GENERAL CONTENTS
ORGANIZATIONAL PROFILE
GRI Code
Content
GRI 102-7
Organization size
GRI 102-8
Information about employees and
other workers
GRI 102-9
Supply chain
GRI 102-10
Significant changes in the organization
and its supply chain
GRI 102-11
Precautionary principle or approach
GRI 102-12
External initiatives
Integrated Report
Reference
Response
Reference Page
Principles
Chapter1 1
Chapter1 8
Chapter1 1
Chapter1 5
Chapter 9
Chapter 2
Chapter 4
Chapter 6
Chapter 9
Chapter 1
Chapter 2
Chapter 6
-
-
-
p.4, p.12, p.127
p.12, p.66, p.148, p.149, p.150, p.152
p.18, p.59, p.128, p.129, p.130, p.147
New agreement to distribute Viña Santa Rita products
in Chile.
New agreement to distribute Estrella Galicia beers in
Brazil
p.6
p.17, p.19, p.92, p.93
Andina has a formal Risk Management and Control
process that incorporates all direct and indirect risks
of the entity within the process of quantification,
monitoring and communication; which is guided
by national and international principles, guidelines
and recommendations; and whose terms have been
embodied in the Corporate Risk Management and
Control Policy, whose text was approved by the Board
of Directors of the Company.
Notwithstanding the above, Andina also has an
Internal Audit unit which reports directly to the Board,
and which is responsible for verifying the effectiveness
and compliance with the policies, procedures, controls
and codes approved by the Board of Directors.
Likewise, Andina has a Code of Ethics, which defines
the principles and guidelines that direct the actions
of all its personnel, regardless of their contractual
relationship with the company, serving as a guide for
the conduct of employees, contractors, consultants
and members of the Board of Directors. This Code
of Ethics is delivered to all personnel 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 of them voluntary and with the
purpose of improving our processes and sharing our experiences.
Coca-Cola Andina adheres to the principles and initiatives in
which The Coca-Cola Company and the Coca-Cola System
participate. Among them, the principles of the Global Compact
and the United Nations Declaration of Human Rights.
Embotelladora Andina S.A. signed its adherence to the United
Nations Global Compact in Chile in 2015, which it maintained
during 2021.
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GENERAL CONTENTS
ORGANIZATIONAL PROFILE
GRI Code
Content
Integrated Report
Reference
Response
Reference Page
Principles
GRI 102-13
Association membership
Chapter 5
p.72
STRATEGY
GRI 102-14
Statement by senior executives
responsible for decision-making
GRI 102-15
Main impacts, risks and opportunities
Chapter 1
Chapter 2
Chapter 6
ETHICS AND INTEGRITY
GRI 102-16
Values, principles, standards and
standards of conduct
Chapter 2
Chapter 6
GRI 102-17
Advisory mechanisms and ethical
concerns
Chapter 2
Chapter 6
GOVERNANCE
GRI 102-18
Governance structure
GRI 102-19
Delegation of authority
Chapter 1
Chapter 2
Chapter 6
Chapter 7
Chapter 1
Chapter 6
Letter from the Chairman of the Board of Directors
Interview with the Chief Executive Officer
p.7, p.9
p.17, p.92
p.23, p.77
p.26, p.77
Vision: To lead the beverage market being recognized
for our management excellence, people and welcoming
culture.
Mission: To add value by growing in a sustainable way,
refreshing our consumers and sharing moments of
optimism with our customers.
Values: Integrity, teamwork, attitude, austerity, results
orientation, customer focus.
Andina's Board of Directors has sufficient powers and
resources to hire the expert advice it deems appropriate
for the proper management of the Company. Likewise,
the Company has a Directors' Committee, which also
has its own budget to independently decide on the
hiring of advisors.
The commitment to the sustainable creation of
value within a framework of transparency, ethics and
corporate responsibility is a strategic objective of our
Corporate Governance. For more details, please review:
The Corporate Crime Prevention Policy and The
Anonymous Whistleblower Procedure.
Corporate crime prevention policy:
https://www.koandina.com/uploads/
Politica%20Corporativa%20de%20
prevencion%20de%20delitos%20
FINAL%20DEFINITIVA.pdf
Code of Ethics:
https://www.koandina.com/uploads/
Codigo%20de%20Etica%20VF%20
PUBLICADA.pdf
p.13, p.14, p.15, p.26, p.77, p.82, p.105
p.14, p.15, p.77
Bylaws:
http://www.koandina.com/uploads/
Adjuntos/Estatutos%20Societarios%20
Reforma%2025-06-12.pdf
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GRI Code
Content
Integrated Report
Reference
Response
GRI 102-20
Executive-level responsibility for
economic, environmental and social
issues
Chapter 6
Culture, Ethics and Sustainability Committee: Among
its duties and responsibilities are: to receive, know
and investigate the reports of irregularities referred
to in Law No. 20. 393 on Crime Prevention (and its
subsequent amendments) and recommend actions
to be taken in each case; establish and develop
procedures to promote the ethical conduct of the
Company's employees; supervise compliance with
the provisions of the Code of Ethics, resolve queries
and conflicts that its application may generate; and
establish mechanisms to disseminate the Code of
Ethics and general ethical matters.
Reference Page
Principles
p.82, p.88, p.90
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GRI 102-21
Consultation of stakeholders on
economic, environmental and social
issues
Chapter 2
At Coca-Cola Andina, the materiality study is updated
every three years. The last one was carried out in
2021 and each result is presented to the Ethics and
Sustainability Committee for validation.
p.18, p.19
GRI 102-22
Composition of the highest governing
body and its committees
Chapter 1
Chapter 6
-
p.13, p.82, p.86, p.88
GRI 102-23
President of the highest governing
body
GRI 102-24
Nomination and selection of the
highest governing body
Chapter 1
Chapter 6
Chapter 6
GRI 102-25
Conflicts of interest
Chapter 6
GRI 102-26
Role of the highest governing body in
the selection of objectives, values and
strategy
Chapter 6
Juan Claro González (Chairman), Member of the
Board since 2004.
p.13, p.77, p.82
-
There is a policy on how to manage conflicts between
the interests of individuals and/or third parties
involved in decision making and the interests of the
Company.
p.82, p.88
p.77, p.78, p.79
p.78, p.82, p.88
Code of Ethics:
https://www.koandina.com/uploads/
Codigo%20de%20Etica%20VF%20
PUBLICADA.pdf
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GRI Code
Content
Integrated Report
Reference
Response
GRI 102-27
Collective knowledge of the highest
governing body
Chapter 6
Chapter 7
Andina has a training mechanism for its members,
which includes lectures and presentations, as well
as the delivery of materials. For these purposes, in
March of each year, a calendar is established that will
determine the subjects on which it is advisable to
update knowledge, and a training agenda in which at
least the following topics will be addressed:
- Best corporate governance practices that have been
adopted by other local and international entities.
- Local and international developments over the
last year in the areas of inclusion, diversity and
sustainability reporting.
- Risk tools, including sustainability, which have been
implemented during the last year at the local and
international level.
- Most relevant judgments, sanctions or
pronouncements, occurred during the last year,
locally or internationally, related to the duties of care,
confidentiality, loyalty, diligence and information.
- The review of situations that constitute a conflict
of interest in the Board of Directors, and the ways
in which they can be avoided or resolved in the best
interest of the Company.
Reference Page
Principles
p.82, p.102
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GRI 102-28
Performance evaluation of the highest
governing body
No performance evaluation of the Board of Directors
was made during 2021.
GRI 102-29
Identification and management of
economic, environmental and social impacts
GRI 102-30
Effectiveness of risk management
processes
Chapter 2
Chapter 6
Chapter 6
GRI 102-31
Assessment of economic,
environmental and social issues
Chapter 2
Chapter 6
p.17, p.18, p.19, p.88, p.92, p.93
p.82, p.92, p.93
p.18, p.92, p.93
Andina has a Risk Management unit, which reports to
the Corporate Finance Management and has proven
to function adequately. The Company believes that
greater focus is given to this issue with this structure. In
any case, this Unit makes quarterly presentations to the
Company's Board of Directors.
Given that the Company understands that sustainability
requires a plan that must be maintained in the long
term, an annual meeting has been defined with the
person in charge of the Sustainability unit, where the
effects and progress achieved in the work plans are
reviewed, and if necessary, the guidelines in the pillars
of sustainable development are reviewed and adjusted,
as well as the dissemination made to the stakeholders
surveyed.
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GENERAL CONTENTS
GOVERNANCE
GRI Code
Content
Integrated Report
Reference
Response
Reference Page
Principles
GRI 102-32
Role of the highest governing body in
sustainability reporting
Chapter 6
GRI 102-33
Communication of critical concerns
Chapter 6
Chapter 7
The Board of Directors must approve the Integrated
Annual Report; it is reviewed and approved at the session
prior to the General Shareholders’ Meeting, which also
express their opinion and approves the Report.
p.78, p.88
p.88, p.102
Andina has a unit dedicated to clarifying doubts that
shareholders and investors, domestic or foreign, may
have regarding the Company, its business, main risks,
financial, economic or legal situation and publicly
known business, all in accordance with the applicable
legal regulations.
This unit is highly qualified to perform this task, its
members are fluent in English and, together with
the Company's Chief Executive Officer and its Chief
Financial Officer, is the only unit authorized by
the Board of Directors to respond to inquiries from
shareholders, investors and the press.
GRI 102-34
Nature and total number of critical
concerns
Chapter 2
GRI 102-35
Remuneration policies
Chapter 6
GRI 102-36
Process for determining remuneration
Chapter 6
GRI 102-37
Involvement of stakeholders in
remuneration
Chapter 6
GRI 102-38
Annual total compensation ratio
-
Confidential information for Embotelladora Andina.
GRI 102-39
Percentage increase in annual total
compensation ratio
GRI 102-40
List of stakeholder groups
Chapter 9
Chapter 2
Chapter 7
p.18, p.19
p.78, p.87
p.87
p.87
p.152
p.18, p.23, p.102
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GENERAL CONTENTS
STAKEHOLDER PARTICIPATION
GRI Code
Content
GRI 102-41
Collective bargaining agreements
Integrated Report
Reference
Response
Reference Page
Principles
Chapter 7
Chapter 9
At Coca-Cola Andina we respect and support the right
to freedom of association in all countries where we
operate.
p.102, p.151
Human Rights Corporate Policy:
http://www.koandina.com/
uploads/paginas/Politica%20de%20
Derechos%20Humanos%20v1.0.pdf
The Company respects the right of its employees
to form, join or not join a union without fear of
retaliation, intimidation or harassment. Where
employees are represented by a legally recognized
union, we are committed to constructive dialogue with
their freely elected representatives. The Company
is committed to negotiate in good faith with such
representatives.
p.18, p.23, p.102
p.18, p.19, p.102
p.18, p.19, p.20, p.21, p.22, p.23, p.24,
p.36, p.102
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
REPORTING PRACTICES
Chapter 2
Chapter 7
Chapter 2
Chapter 7
Chapter 2
Chapter 3
Chapter 7
GRI 102-45
Entities included in the consolidated
financial statements
Chapter 1
This annual report consolidates information from the
operations in the following countries: Argentina, Brazil,
Chile and Paraguay.
p.11
GRI 102-46
Defining report content and topic
boundaries
Chapter 1
Chapter 2
p.11, p.19, p.20, p.21, p.22
In preparing 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 Report is prepared in accordance
with: GRI Standards, International Integrate
Reporting Council, CMF General Standard No. 30,
Accountability AA1000-APS 2008 and the SDGs.
GRI 102-47
List of material topics
Chapter 1
Chapter 2
p.12, p.19, p.20, p.21, p.22
GRI 102-48
Restatements of information
-
It was not performed this year.
GRI 102-49
Changes in reporting
GRI 102-50
Reporting period
Chapter 1
Chapter 1
It was not performed this year.
Between January 1, 2020 and December 31, 2021.
-
p.11
p.11
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GENERAL CONTENTS
REPORTING PRACTICES
GRI Code
Content
Integrated Report
Reference
GRI 102-51
Date of most recent report
-
GRI 102-52
Reporting cycle
GRI 102-53
Contact point for questions regarding
the report
Chapter 1
Chapter 1
Response
2021
Annually.
Sustainability contact details
informesanuales@koandina.com
Ruta Nacional 19, Km. 3,7, Córdoba, Argentina
GRI 102-54
Statement of reporting in accordance
with the GRI Standards
Chapter 1
This report has been prepared in accordance with the
Comprehensive option of the GRI Standards.
GRI 102-55
GRI content index
-
GRI Table
GRI 102-56
External verification
Chapter 1
Verification letter
Review Limited and Independent Verification Report
of the Integrated Annual Report of Coca-Cola Andina
S.A. 2021.
MANAGEMENT APPROACH FOR THE MATERIAL ISSUES DEFINED
GRI 103-1
Explanation of the material issue and
its coverage
GRI 103-2
Management approach and its
components
GRI 103-3
Evaluation of management approach
Chapter 2
Chapter 3
Chapter 4
Chapter 6
Chapter 9
Chapter 2
Chapter 3
Chapter 4
Chapter 6
Chapter 9
Chapter 2
Chapter 3
Chapter 4
Chapter 6
Chapter 9
ECONOMIC CONTENT
ECONOMIC PERFORMANCE
Reference Page
Principles
-
p.11
p.4
p.11
p.303
p.11, p.342
p.19, p.20, p.21, p.22, p.24, p.25, p.30,
p.31, p.33, p.34, p.39, p.40, p.41, p.42,
p.43, p.44, p.52, p.54, p.55, p.56, p.57,
p.78, p.80, p.134, p.135, p.138, p.139,
p.140, p.141, p.142, p.143, p.144
p.19, p.20, p.21, p.22, p.24, p.25, p.30,
p.31, p.33, p.34, p.39, p.40, p.41, p.42,
p.43, p.44, p.52, p.54, p.55, p.56, p.57,
p.78, p.80, p.135, p.138, p.139, p.140,
p.141, p.142, p.143, p.144
p.19, p.20, p.21, p.22, p.24, p.25, p.30,
p.31, p.33, p.34, p.39, p.40, p.41, p.42,
p.43, p.44, p.52, p.54, p.55, p.56, p.57,
p.78, p.80, p.134, p.135, p.138, p.139,
p.140, p.141, p.142, p.143, p.144
GRI 201-1 Direct economic value generated and
Chapter 2
distributed
p.24
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ECONOMIC CONTENT
ECONOMIC PERFORMANCE
GRI Code
Content
Integrated Report
Reference
Response
Reference Page
Principles
GRI 201-2
Financial implications and other risks
and opportunities due to climate
change
Chapter 2
Chapter 4
Chapter 6
Risks/opportunities are identified and addressed
through the Risk Management process. Reviewed
annually and audited to ensure adequate mitigation.
p.25, p.38, p.39, p.45, p.46, p.47,
p.48, p.96, p.97
GRI 201-3
Defined benefit plan obligations and
other retirement plans
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 5
The Company complies with the system of social
security obligations in force in all countries where it
operates.
Andina does not receive financial assistance from the
government.
ECONOMIC PERFORMANCE
GRI 202-2
Proportion of senior management
hired from the local community.
Chapter 5
INDIRECT ECONOMIC IMPACTS
GRI 203-1
Infrastructure investments and services
supported
Chapter 2
Chapter 5
Chapter 8
-
-
p.66
p.66
p.33, p.72, p.127, p.132
GRI 203-2
Significant indirect economic impacts
Chapter 5
p.72
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ECONOMIC CONTENT
PROCUREMENT PRACTICES
GRI Code
Content
GRI 204-1
Proportion of spending on local
suppliers
ANTI-CORRUPTION
GRI 205-1
Operations assessed for risks related to
corruption
Communication and training about
anticorruption policies and procedures
Chapter 2
Chapter 6
Chapter 8
Chapter 9
Chapter 6
Reference Page
Principles
p.26, p.78, p.80, p.126, p.129, p.147
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Crime Prevention Corporate Policy
https://www.koandina.com/uploads/
Politica%20Corporativa%20de%20
prevencion%20de%20delitos%20
FINAL%20DEFINITIVA.pdf
Code of Ethics:
https://www.koandina.com/uploads/
Codigo%20de%20Etica%20VF%20
PUBLICADA.pdf
Embotelladora Andina S.A. and its Subsidiaries shall ensure
that they maintain an adequate organizational, administrative
and supervisory model for the prevention of crimes referred
to in Chilean Law No. 20,393, called "Embotelladora Andina
S.A.'s Crime Prevention Model", through which the prevention
of the commission of crimes of Money Laundering, Financing
of Terrorism, Bribery, Embezzlement, and all crimes that are
incorporated into this law in the future will be promoted.
The Coca-Cola Company conducts compliance, ethics and
crime prevention audits and reviews randomly among all our
facilities.
On the other hand, all our staff knows the code of ethics and
the anti-corruption model, these elements are mandatory
content in the induction to the company for both employees
and directors.
Embotelladora Andina S.A. and its Subsidiaries shall ensure
that they maintain an adequate organizational, administrative
and supervisory model for the prevention of crimes referred
to in Chilean Law No. 20,393, called "Embotelladora Andina
S.A.'s Crime Prevention Model", through which the prevention
of the commission of crimes of Money Laundering, Financing
of Terrorism, Bribery, Embezzlement and all crimes that may
be incorporated into this law in the future shall be promoted.
Each year The Coca-Cola Company conducts annual audits
and reviews of compliance, ethics and crime prevention
randomly among all our facilities.
On the other hand, all our staff knows the code of ethics and
the anti-corruption model, these elements are mandatory
content in the induction to the company for both employees
and directors.
Complaints are received through the Ethics Point channel.
The status of the complaints is as follows:
- The 24 complaints that were under review at the end of
2020 were reviewed, addressed and closed during 2021.
- 58 complaints were received in 2021, of which 54 were
reviewed, addressed and closed, with 4 remaining under
review as of December 31.
No complaints of corruption were received.
p.80, p.81
p.78, p.80, p.81, p.157
p.78, p.81
GRI 205-2
Chapter 6
Chapter 9
GRI 205-3
Confirmed incidents of corruption and
actions taken
Chapter 6
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ANTI-COMPETITIVE BEHAVIOR
GRI Code
Content
Integrated Report
Reference
Response
Reference Page
Principles
GRI 206-1
Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices
Chapter 6
Embotelladora Andina does not have or has not
filed any legal actions against it related to unfair
competition, antitrust and/or anti-competitive
practices in 2021.
TAXES
GRI 207-1
Approach to tax
Chapter 2
The tax strategy of Coca-Cola Andina and its
subsidiaries is aligned with the business strategy
and defines the strategic objectives in tax matters,
pursuing the firm commitment to support the creation,
construction and protection of shareholder value,
in 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 consideration is given
to corporate and social responsibilities, seeking
the progress not only of the company, but also
of 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 its stakeholders.
p.78, p.81
p.24
Corporate Tax Policy:
http://www.koandina.com/uploads/
Politica%20Corporativa%20
Tributaria%20v2.0.pdf
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GRI 207-2
Tax governance, control, and risk
management
Chapter 2
GRI 207-3
Stakeholder engagement and
management
concerns related to tax
Chapter 2
p. 24
The Directors' Committee approves the tax criteria and
principles that govern the company's tax strategy and
that must be applied and followed in all the countries
in which we operate. Both the defined strategy and
the tax 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.
We aim to meet our growth objective by acting
responsibly and safeguarding the long-term interests of
all our stakeholders, including employees, customers,
suppliers, brand partners, shareholders, governments
and the communities in which we operate.
p. 24
GRI 207-4
Country by country reporting
See consolidated financial statements
(p. 188 to p.302)
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ENVIRONMENTAL CONTENT
MATERIALS
GRI Code
Content
GRI 301-1
Materials used by weight and volume
GRI 301-2
Recycled input materials
Chapter 2
Chapter 4
Chapter 9
Chapter 2
Chapter 4
Chapter 9
GRI 301-3
Percentage of products sold and their
packaging materials that are reclaimed
at end of life, by category
Chapter 2
Chapter 4
Chapter 9
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
WATER AND EFFLUENTS
GRI 303-1
Interactions with water as a shared
resource
GRI 303-2
Management of water discharge-
related impacts
Chapter 2
Chapter 4
Chapter 9
Chapter 2
Chapter 4
Chapter 9
Chapter 2
Chapter 4
Chapter 9
Chapter 2
Chapter 4
Chapter 9
Chapter 2
Chapter 4
Chapter 9
Chapter 2
Chapter 4
Chapter 9
Chapter 2
Chapter 4
Chapter 9
p.25, p.45, p.46, p.47, p.48, p.50, p.142,
p.144
p.25, p.45, p.46, p.47, p.48, p.50, p.142,
p.144
p.25, p.45, p.46, p.47, p.48, p.50, p.142,
p.144
p.25, p.52, p.54, p.55, p.56, p.57, p.145
p.25, p.52, p.54, p.55, p.56, p.57, p.145
p.25, p.52, p.54, p.55, p.56, p.57, p.145
p.25, p.52, p.54, p.55, p.56, p.57, p.145
p.25, p.52, p.54, p.55, p.56, p.57, p.145
p.25, p.39, p.41, p.42, p.43, p.44, p.138,
p.139
p.25, p.39, p.40, p.41, p.42, p.43, p.44,
p.134
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ENVIRONMENTAL CONTENT
WATER AND EFFLUENTS
GRI Code
Content
GRI 303-3
Water withdrawal
GRI 303-4
Water discharge
GRI 303-5
Water consumption
BIODIVERSITY
GRI 304-1
Operational sites owned, leased,
managed in, or adjacent to, protected
areas and areas of high biodiversity
value outside protected areas
GRI 304-2
Significant impacts of activities,
products and services on biodiversity
Integrated Report
Reference
Response
Chapter 2
Chapter 4
Chapter 4
Chapter 9
Chapter 4
Chapter 9
-
-
No operations in protected areas were recorded at the
close of the report.
No operations in protected areas were recorded at the
close of the report.
GRI 304-3
Habitats protected or restored
Chapter 4
GRI 304-4
IUCN Red List species and national
conservation list species with habitats
in areas affected by operations
-
No operations in protected areas were recorded at
the close of the report, therefore, no protected species
habitats have been affected.
EMISSIONS
GRI 305-1
Direct (Scope 1) GHG emissions
GRI 305-2
Energy indirect (Scope 2) GHG
emissions
GRI 305-3
Other indirect (Scope 3) GHG
emissions
GRI 305-4
GHG emissions intensity
GRI 305-5
Reduction of GHG emissions
Chapter 4
Chapter 9
Chapter 4
Chapter 9
Chapter 4
Chapter 9
Chapter 4
Chapter 9
Chapter 4
Chapter 9
Reference Page
Principles
p.25, p.39, p.40, p.41, p.42, p.43, p.44,
p.52, p.54, p.55, p.56, p.57
p.42, p.140
p.39, p.40, p.41, p.42, p.43, p.44, p.138,
p.139
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p.57
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p.55, p.56, p.146
p.55, p.56, p.146
p.55, p.56, p.146
p.55, p.56, p.146
p.55, p.56
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EMISSIONS
GRI Code
Content
GRI 305-6
Emissions of ozone-depleting
substances (ODS)
GRI 305-7
Nitrogen oxides (NOx), sulfur oxides
(SOx), and other significant air
emissions
Integrated Report
Reference
Response
Reference Page
Principles
-
-
Use of refrigerant gases for Coca-Cola Andina Total in
2021 were:
- R22: 559 kg
- R134: 1,079 kg
- 404A: 191 kg
- R407: 50 kg
- R410A: 34 kg
- R407C: 90 kg
- Others: 214 kg
In 2021 Embotelladora Andina did not report NOx
and SOx due to a change in the methodology used to
estimate greenhouse gases.
-
-
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WASTE
GRI 306-1
Waste generation and significant
waste-related impacts
Chapter 4
Chapter 9
GRI 306-2
Management of significant
waste-related impacts
GRI 306-3
Waste generated
GRI 306-4
Waste diverted from disposal
GRI 306-5
Waste directed to disposal
ENVIRONMENTAL COMPLIANCE
Chapter 4
Chapter 4
Chapter 9
Chapter 4
Chapter 9
Chapter 4
Chapter 9
p.45, p.46, p.47, p.48, p.51, p.141
p.45, p.46, p.47, p.48
100% of the waste is transported by third parties for
further treatment.
All waste is treated in its country of origin.
p.45, p.46, p.47, p.48, p.51, p.143, p.144
p.45, p.46, p.47, p.48, p.141, p.143, p.144
p.45, p.46, p.47, p.48, p.51, p.143, p.144
GRI 307-1 Non-compliance with environmental
laws and regulations
The organization has not identified any non-
compliance with environmental laws or regulations.
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SUPPLIER MANAGEMENT
GRI Code
Content
Integrated Report
Reference
Response
GRI 308-1
New suppliers that have passed
evaluation and selection filters in
accordance with environmental criteria
Chapter 4
Chapter 9
GRI 308-2
Negative environmental impacts in the
supply chain and actions taken
Chapter 4
SOCIAL CONTENT
EMPLOYMENT
GRI 401-1
New employee hires and staff turnover
Chapter 9
GRI 401-2
Benefits for full-time employees that
are not given to part-time or temporary
employees
Chapter 5
GRI 401-3
Parental leave
Chapter 9
COMPANY-WORKER RELATIONSHIP
GRI 402-1 Minimum notice periods regarding
-
operational changes and possible
inclusion of these in collective
As a general provision, the minimum notice period
depends on the local regulatory definitions in each
country.
OCCUPATIONAL HEALTH AND SAFETY
GRI 403-1
Health and safety management system
Chapter 5
Reference Page
Principles
p.58, p.59, p.147, p.157
p.45, p.46, p.47, p.48, p.58, p.59
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p.65
p.153
-
p.68
GRI 403-2
Hazard identification, risk assessment
and incident investigation
Chapter 5
Chapter 9
All plants operate under OHSAS 18001 or ISO 45001
standards, as well as the voluntary implementation of
the Behavior-Based Safety Program.
p.68, p.154
GRI 403-3
Occupational health services
GRI 403-4
Worker participation, consultations
and communication on occupational
health and safety
Chapter 5
Chapter 9
Chapter 5
Chapter 9
p.68, p.154
p.68, p.154
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OCCUPATIONAL HEALTH AND SAFETY
GRI Code
Content
GRI 403-5
Training workers on occupational
health and safety
Integrated Report
Reference
Chapter 5
GRI 403-6
Promoting health of workers
Chapter 5
GRI 403-7
Prevention and mitigation of
occupational health and safety
impacts directly linked by business
relationships.
Chapter 5
GRI 403-8
Workers covered by an occupational
health and safety management system
Chapter 5
GRI 403-9
Work-related injuries
Chapter 5
Chapter 9
GRI 403-10
Occupational ailments and illnesses
Chapter 5
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.
GRI 404-3
Percentage of employees receiving
regular performance and career
development reviews by gender and
professional category
Chapter 9
Chapter 5
Chapter 9
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 2
Chapter 5
Chapter 6
Chapter 9
Chapter 6
Response
Reference Page
Principles
p.68
p.68
p.68
p.68
Occupational illness frequency rate for 2021 was 0.06
p.68, p.70, p.154
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p.150, p.151
p.63
p. 151
p.26, p.66, p.86, p.148, p.149, p.150,
p.152
p.91
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SOCIAL CONTENT
NON-DISCRIMINATION
GRI Code
Content
Integrated Report
Reference
Response
Reference Page
Principles
GRI 406-1
Incidents of discrimination and
corrective actions
Chapter 5
FREEDOM OF ASSOCIATION
GRI 407-1
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 4
Chapter 5
Chapter 9
CHILD LABOR
GRI 408-1 Operations and suppliers at significant
risk for incidents of child labor and
measures taken to contribute to the
abolition of child labor
Chapter 4
Chapter 9
p.66
Embotelladora has a whistleblower channel for all its
employees:
a. Anonymous Complaints Channel, through the
Company's website, whose content can only be
accessed by the Company's Directors and Audit
Committee, and the persons they designate for this
purpose.
b. Formal Complaints Channel, pursuant to which
any Person who has information or suspicion of the
existence of a violation shall be allowed.
In 2021 there was one complaint of discrimination,
received through the anonymous complaint channel.
p.58, p.59, p.61, p.157
All suppliers must comply with the standards and
requirements of the Coca-Cola System and the
Guiding Principles for Suppliers. Review the Supplier
and Third Party Code of Ethics.
The Company respects the right of its employees
to form, join or not join a union without fear of
retaliation, intimidation or harassment. Where
employees are represented by a legally recognized
union, we are committed to constructive dialogue with
their freely elected representatives. The Company
is committed to negotiate in good faith with such
representatives.
p.58, p.59, p.157
The prohibition of hiring persons under 18 years of
age is incorporated in the rules of the Internal Rules of
Order, Hygiene and Safety, as well as in the contractors'
regulations. 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 labor insertion.
Anonymous complaints procedure:
https://www.koandina.com/uploads/
Proc.%20de%20Denuncias%20
Anonimas%20VF%20PUBLICADO.
pdf
Code of ethics for suppliers and third
parties:
https://www.koandina.com/uploads/
Codigo%20de%20Etica%20de%20
Proveedores%20y%20Terceros%20
v1.0%202021.pdf
Human rights policy:
http://www.koandina.com/
uploads/paginas/Politica%20de%20
Derechos%20Humanos%20v1.0.pdf
Code of ethics for suppliers and third
parties:
https://www.koandina.com/uploads/
Codigo%20de%20Etica%20de%20
Proveedores%20y%20Terceros%20
v1.0%202021.pdf
Code of ethics for suppliers and third
parties:
https://www.koandina.com/uploads/
Codigo%20de%20Etica%20de%20
Proveedores%20y%20Terceros%20
v1.0%202021.pdf
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SOCIAL CONTENT
FORCED LABOR
GRI Code
Content
Integrated Report
Reference
Response
Reference Page
Principles
GRI 409-1
Operations and suppliers at significant
risk for incidents of forced or
compulsory labor and measures taken
to contribute to the elimination of all
forms of forced labor
Chapter 9
pag.157
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%20de%20
Derechos%20Humanos%20v1.0.pdf
Code of ethics for suppliers and third
parties:
https://www.koandina.com/uploads/
Codigo%20de%20Etica%20de%20
Proveedores%20y%20Terceros%20
v1.0%202021.pdf
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SAFETY PRACTICES
GRI 410-1
Percentage of security personnel
trained in the organization's human
rights policies or procedures relevant
to operations
RIGHTS OF INDIGENOUS PEOPLES
Chapter 9
Security personnel at all facilities are outsourced.
p.150, p.151
GRI 411-1
Incidents of violations involving rights
of indigenous peoples
-
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
GRI 412-1
Operations that have been subject
to human rights reviews or impact
assessments
Chapter 4
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.
p.58
GRI 412-2
Employee training on human rights
policies or procedures
Chapter 4
Chapter 9
p.58, p.150, p.151
GRI 412-3
Significant investment agreements and
contracts that include human rights
clauses or that underwent human
rights screening
Chapter 4
100% of suppliers must comply with the standards and
requirements of the Coca-Cola system and the Guiding
Principles for Suppliers.
p.58
Code of ethics for suppliers and third
parties:
https://www.koandina.com/uploads/
Codigo%20de%20Etica%20de%20
Proveedores%20y%20Terceros%20
v1.0%202021.pdf
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SOCIAL CONTENT
LOCAL COMMUNITIES
GRI Code
Content
Integrated Report
Reference
Response
Reference Page
Principles
GRI 413-1
Operations with local community
engagement, impact assessments and
development programs
Chapter 2
Chapter 5
Chapter 9
The relationship with the community is managed by
those responsible for sustainability and institutional
relations, always aligned with the Coca-Cola Company
and definitions of its Public Affairs areas.
p.26, p.72, p.154
GRI 413-2
Operations with significant negative
impacts –real or potential– on local
communities
Chapter 2
Chapter 5
We have not identified that there are significant
negative effects on the local communities where we
operate.
p.26, p.72
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SUPPLIERS SOCIAL ASSESSMENT
GRI 414-1
Percentage of new suppliers that were
examined based on human rights
criteria
Chapter 2
Chapter 4
Chapter 9
GRI 414-2
Negative social impacts on the supply
chain and measures taken
Chapter 2
Chapter 4
p.26, p.58, p.59, p.147, p.157
p.26, p.58, p.59
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
GRI 416-1
Percentage of significant product and
service categories whose health and
safety impacts have been evaluated to
promote improvements
Chapter 2
Chapter 3
Chapter 9
GRI 416-2
Cases of non-compliance related to the
health and safety impacts of product
and service categories
Chapter 2
Chapter 3
100% of the products are analyzed and their ingredients,
such as sugar content, are adapted in new versions or
new brands.
p.26, p.28, p.32, p.33, p.34, p.134
The organization has not identified any voluntary non-
compliance with regulations or codes.
p.25, p.26, p.28, p.32, p.33, p.34
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SOCIAL CONTENT
RESPONSIBLE MARKETING
GRI Code
Content
Integrated Report
Reference
Response
GRI 417-1
Requirements for information and
labelling of products and services
GRI 417-2
Cases of non-compliance related to
information
and labelling of products and services
Chapter 3
Chapter 9
Chapter 3
Chapter 9
Reference Page
Principles
p.30, p.31, p.32, p.134, p.135
The organization has not identified any voluntary non-
compliance with regulations or codes.
p.32, p.135, p.156
GRI 417-3
Non-compliance cases related to
marketing communications
Chapter 3
Chapter 9
The organization has not identified any voluntary non-
compliance with regulations or codes.
p.32, p.135, p.156
CUSTOMER PRIVACY
GRI 418-1
Informed claims regarding customer
privacy violations and loss of customer
data
SOCIOECONOMIC COMPLIANCE
GRI 419-1
Non-compliance with laws and
regulations in the social and economic
area
-
-
No record in the period
The Organization has not identified any non-
compliance with laws or regulations.
-
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CONSUMERS
CLIENTS
SUPPLIERS
They are all the people who consume our products in
the countries where we operate.
They are the ones who sell our products to consumers.
They can be: "On premise" (consumption on the
premises, pubs, restaurants, discotheques, etc.); "Off
premise" (stores, grocery stores, drugstores, kiosks, self-
service stores, supermarkets, wholesalers, among others).
This group includes all contractors, suppliers and
business partners who are part of the procurement
process for raw materials and services.
Why we commit
Why we commit
Why we commit
Consumers are at the heart of our strategy. Although
historically we have operated with a model where
customers are the ones who interact with the end
consumer, our new model includes more and more
consumer components.
At Coca-Cola Andina we have more than 270 thousand
points of sale with a wide range of products. They are
key partners in the value chain.
The people who work in our supply chain are an
essential part of our process. Collaborating with them,
both upstream and downstream, helps us address social
and environmental challenges.
How do we engage?
How do we engage?
How do we engage?
At Coca-Cola Andina, it is essential for us to engage
with consumer requirements, in order to offer a broad
portfolio that can satisfy this variety of requirements.
Our commitment to products that integrate sustainable
management also helps us develop products that can
meet their preferences and needs and improve our
offerings.
We measure customer satisfaction and managing the
variables that affect it.
Integrating a fair and ethical management with all our
suppliers, acting as a good partner to large and small
suppliers that help us achieve our goals.
How do we communicate?
How do we communicate?
How do we communicate?
Through our advertising campaigns, as well as through
our customers and digital channels.
We have a contact center to attend to our customers
inquiries and requirements. On the other hand, we
have satisfaction surveys, focus groups, telephone
surveys, review of claims, our App, salespeople and
delivery people, among others.
We maintain a close relationship with them. For us it is
important to share knowledge and experience and find
ways to use all our resources as efficiently as possible,
reducing costs. But also by giving the opportunity to
suppliers who are part of our close community.
Key issues
Key issues
Key issues
· Portfolio breadth;
· Product quality and safety;
· Product alternatives lower in sugar;
· Product alternatives with health benefits.
· Relationship quality;
· Efficiency and resolution of requirements;
· Product breadth and capability;
· Proactivity in resolving their needs.
· Health, safety and fair working conditions;
· Responsible supply chain management;
· Environmental and social impact;
· Responsible marketing practices.
Channels
Channels
Channels
Digital channels
Corporate website
Plant visits
Events and marketing campaigns
Integrated Annual Report
Anonymous whistleblower channel
Regular communication channels
Digital channels
Training
Satisfaction surveys
Corporate website
Customer service and development centers and call
centers
Meetings with sales and commercial teams
Plant visits
Integrated Annual Report
Anonymous whistleblower channel
Regular communication channels
Digital channels
Regular meetings
Interviews
Corporate website
Bids
Trainings
Integrated Annual Report
Anonymous whistleblower channel
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COLLABORATORS
COMMUNITY, RECYCLERS
THE COCA-COLA COMPANY
Sales, production and distribution processes, and back-
office/staff/support areas.
It is the community close to our operations and the one
that surrounds us, in general, in the franchise areas. It
includes recyclers, who allow us to return packaging to
the production chain to achieve a circular economy.
It is our foremost strategic partner, for more than 75 years;
it grants us the license to produce and distribute products
of its brands within territories in Argentina, Brazil, Chile
and all of Paraguay.
Why we commit
Why we commit
Why we commit
Our collaborators are the drivers of change and
ambassadors of the Company. Their commitment, loyalty
and dedication are essential to make our mission and
vision a reality.
The close relationship with the communities where we
operate and the relationship with their needs are key to
Coca-Cola Andina's sustainable growth.
It is our strategic partner that develops the beverage
brands we bottle and sell. It is our supplier and
shareholder.
How do we engage?
How do we engage?
How do we engage?
We are aware of the aspects that are relevant to them
and maintain a good internal work environment. Our
commitment to our collaborators is to allow them to
develop a career that enables them to enhance their skills
and talents, so that together we can identify and solve the
challenges faced by Coca-Cola Andina.
We aspire to improve the quality of life in the
communities where we operate and we work towards this
goal. Waste is one of the important issues to be managed,
a task that we carry out together with basic recyclers in
their outstanding work to recover material.
We work together to create a more sustainable future that
allows us to make a difference in people's lives, reducing
the impact of climate change on the planet.
How do we communicate?
How do we communicate?
How do we communicate?
We maintain a direct, constant and effective
communication to timely solve the various challenges
we face.
We maintain close ties with the communities where
we operate through specific programs, participation
in organizations, meetings with authorities, training,
donations and numerous events throughout the year.
We have a permanent interaction to develop joint
initiatives and short, medium and long term planning.
Key issues
· Company strategy and performance;
· Diversity, equity and inclusion;
· Training and development;
· Health, safety and well-being;
· Compensation and benefits.
Key issues
· Inclusive recycling;
· Working conditions.
Key issues
· Product quality and safety;
· Commitment to sustainable operations.
Channels
Channels
Channels
Corporate intranet
Emailing
Climate analysis and job satisfaction surveys
Internal magazine
Meetings
Corporate website
Integrated Annual Report
Anonymous whistleblower channel
Events and outreach activities
Participation in organizations
Meetings with municipalities
Trainings
Digital channels
Corporate website
Plant visits
Integrated Annual Report
Anonymous whistleblower channel
Meetings
Participation in joint initiatives
Construction of joint plans
Audits
Corporate website
Integrated Annual Report
Annual General Shareholders' Meetings
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REGULATOR
SHAREHOLDERS
INVESTORS AND ANALYSTS
In Chile it is the Financial Market Commission and in the
United States it is the Securities and Exchange Commission.
This includes political influencers, political decision-
makers, intergovernmental organizations, regulatory bodies,
standard-setting bodies, government authorities (including
legislators) and customs organizations.
Shareholder is any individual or legal entity that owns
Company shares.
These are fixed income and equity investors, credit
institutions, insurance companies, financial analysts,
financial risk rating agencies and ESG (environmental,
social and governance).
Why we commit
Why we commit
Why we commit
Dialogue with authorities, government and regulators
enables us to understand their priorities and concerns
and, in addition, to pass on our concerns, knowledge and
experience.
In the Company we have the responsibility to generate
value for all shareholders equally.
Having the trust and commitment of the financial
community is key to managing our value proposition,
strategy and adequate performance. On the other hand,
every day investment decisions integrate more criteria
(ESG), and this is an opportunity for Coca-Cola Andina.
How do we engage?
How do we engage?
How do we engage?
Dialoguing, attending events and seminars. We also
participate in workshops through the various trade
associations in each of the countries.
Through the management of a solid Corporate
Governance that integrates risk management, internal
control, internal audit and external audit.
Through the integration of sustainability in our strategy,
which allows us to offer a long-term business model.
How do we communicate?
How do we communicate?
How do we communicate?
Through formal channels of communication with
stakeholders.
It is essential for us to provide information on the
evolution of our business, as well as our current and
future view of the Company. The Investor Relations area
has this role and acts with the principles of equality and
transparency.
We have an Investor Relations area that bears this
responsibility.
Key issues
Key issues
Key issues
· Sustainability management;
· Corporate Governance;
· Compliance;
· Innovation;
· Regulatory compliance.
· Value generation;
· Dividends;
· ROA (return on assets)
· ROE (return on equity)
Channels
Channels
Meetings with different governmental bodies
Integrated Annual Report
Anonymous whistleblower channel
20F Document
Quarterly earnings presentation conference call;
Corporate website
Integrated Annual Report
20F Document
Annual General Shareholders' Meetings.
Corporate presentations.
Digital channels
Anonymous whistleblower channel
· Integration of sustainability into the strategy;
· Financial performance and ESG;
· Packaging management, returnable packaging
management and water use in water-stressed areas;
· Risk management;
· Governance;
· Remuneration of the Board of Directors and
executive team.
Channels
Annual general shareholders' meetings.
Events and conferences;
Investor Days;
Corporate presentations.
Integrated Annual Report
Roadshows
Questionnaires and responses from financial and ESG
analysts;
Sustainability reporting frameworks (SASB, GRI, IIRC,
TCFD);
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CUSTOMER SATISFACTION
Siempre Juntos
(Always Together)
The "Siempre Juntos" initiative benefited
about 50,000 route customers in the
reopening of markets after the pandemic,
with special conditions, such as: assistance
with materials, health, payment terms and
debt renegotiation, with an investment of
about R$ 4MM.
Mi Barrio mi Almacén
(My Neighborhood my Store)
In 2021 we extended the program to the
municipalities of Renca, San Joaquín
and Maipú. The program consists of
a digital platform - designed by
Coca-Cola Andina, in partnership with
Azurian and Scotiabank, and aims to
deliver digital solidarity boxes, which can
be freely exchanged by the beneficiary
families in any of the traditional stores in
their neighborhood.
In 2021 we invested more than
US$179,000.
Estemos abiertos & Sigamos abiertos
(Let's be open & Stay open)
In Argentina, we reached more than 5,000
customers in a personalized and direct
way with our sales force delivering safety
and hygiene elements for the business,
assembling commercial incentive kits
for customers. In 2021, we continued
the program focused on free training
on commercial issues. In Paraguay, the
program was promoted in partnership with
Fundación Paraguaya and the Retail Grocers
Association of Paraguay, with the support
of the Coca-Cola Foundation. This program
supports the economic reactivation of small
neighborhood businesses to help them
stay open during the pandemic through
micro-credits, training and the delivery of
bio-safety materials. The initiative reached
more than 500 stores and food pantries.
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COKE.NET
Cokenet is a self-management platform for
key customers (Key Accounts) where they
can self-manage their orders. It is a tool
developed by The Coca-Cola Company.
Today we have it implemented in our
Brazilian operation where more than 1,473
customers use it regularly.
MI COCA-COLA CLIENTES
During 2021 we continued working on
our B2B (Business to Business) solution
Mi Coca-Cola, with which we provide
answers to the different needs that our
customers have, generating a direct channel
of communication and self-management
for them. Some of the most relevant
functionalities are discounts, sweepstakes,
payments, notifications and news, savings
and order traceability. All this content is
available in a personalized way and in real
time for each customer. Today, the largest
deployment of this solution is in Argentina,
where more than 45,715 customers are
registered (75.2% of the total). Of these,
25,000 use it frequently. We are currently
working hard to integrate the shopping cart for
Coca-Cola Andina's four operations, so that all
customers can self-manage their orders.
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 service for our customers. It
is currently operational in Rio de Janeiro
and Espírito Santo, where there are 14,083
registered customers of which 8,502
buy regularly. We are in the process of
expanding to more customers in Brazil and
to the territories of Chile, Paraguay and
Argentina.
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CONSUMERS: PROGRESS OF
PRINCIPAL INITIATIVES
MICOCA-COLA.CL
It is currently the e-Commerce benchmark
in sales and service of the Coca-Cola
system in the world. It was developed in
conjunction with Vtex and Ecomsur, with
the purpose of allowing our consumers to
buy and receive directly in their homes
the complete portfolio of products
commercialized by Coca-Cola Andina
with a memorable customer experience.
Digital sales had been on the rise since
before, but with the restrictions on mobility
caused by the arrival of the pandemic, sales
through this channel at the end of the year
were multiplied x 7.5 (compared to 2019),
increasing orders and volume by +40% vs
the previous year, maintaining a level of
excellent service (NPS +84 pts).
TIENDA COCA-COLA
Tienda Coca-Cola is a B2B2C sales model
that sells directly to our consumers. It was
implemented in Argentina together with
The Coca-Cola Company. This solution is
leveraged on our installed capacity where
we add our customers as Pick-Up points,
providing consumers with multiple locations
to pick up the orders they placed through
e-commerce. Today Tienda Coca-Cola
operates in Córdoba, San Francisco, Villa
María, Carlos Paz, Alta Gracia, Mendoza,
Rosario and Bahía Blanca. We are working
on a strong expansion plan for the rest of
Argentina.
PROMOS DIGITALES
This is a solution where we digitize
promotions to our consumers. It was
implemented in our operation in Argentina,
achieving very good results, reaching in
some promotions more than 100,000
redemptions and more than 60,000
consumers participated. It is very simple,
the consumer obtains the redemption code
by scanning a QR code, our client validates
the code and delivers the promotion to
the consumer. This solution opens up
different opportunities for us to digitize the
relationship with our consumers.
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DIGITAL PAYMENTS: PROGRESS
OF PRINCIPAL INITIATIVES
range of alternatives to make payments
with debit and credit cards and transfers.
In Brazil, 100% of our orders are paid by
means of a boleto, which the customer pays
by different means, such as transfer, credit
card or digitally, with only 20% of physical
payments being made at a payment entity.
DIGITAL PAYMENTS
This is one of Andina's strategic axes aimed
at digitizing our collection systems in a
sustainable manner.
PAYMENT SOLUTIONS ARE
AIMED AT PROVIDING AN
INNOVATIVE AND QUALITY
SERVICE THAT ADDS VALUE
TO OUR CUSTOMERS,
FREIGHT FORWARDERS,
TRANSPORTATION
COMPANIES AS WELL
AS INTERNAL USERS BY
APPLYING MORE EFFICIENT
AND AUTOMATED
PROCESSES.
The focus is oriented to provide greater
physical, monetary and sanitary security
to the collection process through a set of
digital means of payment, contributing to
the digital development of the value chain,
actively collaborating in financial inclusion.
During 2021, Chile established a gateway
solution that allows concentrating different
payment methods and current and future
operators, providing customers with a wide
In the case of Paraguay, post net equipment
was included in the trucks, giving our
customers the possibility of paying by
debit and with credit card. Argentina
implemented its own payment solution,
integrating and developing products with
financial-technological suppliers. For this
purpose, alliances were made with the
banking sector, non-banking collection
agents, debit and credit card processors, as
well as with the leading fintech companies
in the sector, such as MercadoPago, which
represent more than 65% of the transactions.
During 2021, we were able to cover 100%
of the locations in Argentina, training
clients, freight forwarders and collaborators,
increasing coverage and penetration of use.
WE ACCUMULATED MORE
THAN 137 THOUSAND
TRANSACTIONS, ACHIEVING
AN AVERAGE OF 8,900 USER
CLIENTS PER MONTH AND
COLLECTING MORE THAN
US$ 58 MILLION, WHICH
REPRESENTS 10% OF
COLLECTIONS.
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WATER MANAGEMENT
BENCHMARKING WATER USE AT
DUQUE DE CAXIAS PLANT
In 2018 Coca-Cola Andina Brazil began
operating its new factory located in Duque
de Caxias, in the state of Rio de Janeiro. With
an investment of more than US$ 150 million,
this production unit follows the Industry 4.0
model aligning sustainability, technology and
economic development.
"THE FACILITY WAS
COMPLETELY CONCEIVED
AND DESIGNED TO MEET
THE MOST SPECIFIC NEEDS
OF THE OPERATION,
GUARANTEEING EFFICIENCY,
SAFETY AND QUALITY. THIS
FACTORY IS A REFERENCE
FOR THE BEVERAGE
INDUSTRY. WE CONTINUE TO
EXPAND OUR BUSINESS IN A
SUSTAINABLE MANNER".
Renato Barbosa, General Manager,
Coca-Cola Andina Brazil
As a result, the factory is a project planned,
built and operated within sustainable
building concepts (LEED) and demonstrates
the team's commitment to the future of our
planet and the next generations.
In 2020, the plant achieved the best
performance of the Coca-Cola Brazil system
with a water use ratio (WUR) of 1.22, which
represents the consumption of 1.22 liters of
water for every liter of beverage produced.
The good numbers were confirmed and
currently the plant has a water ratio of 1.24.
The unit has online monitoring, internet
of things platforms, augmented reality,
artificial intelligence and big data solutions;
automation and digitalization are at the
service of water efficiency. Within Coca-Cola
Andina, this facility is a permanent source
of ideas, models and good practices that
are synergistically extended to the other
operations in the four countries to improve
jointly.
“THIS ACHIEVEMENT
WAS POSSIBLE BECAUSE
WE ADOPTED SEVERAL
INITIATIVES THAT
ARE CARRIED OUT
WITH DEDICATION BY
A TEAM THAT VALUES
SUSTAINABILITY AND
ENVIRONMENTAL
PRESERVATION".
Luciana de Menezes Oliveira De Sant Anna,
Quality and Environmental Analyst at
Coca-Cola Andina Brazil.
To ensure the success of what was planned
and in line with the maintenance of the good
results obtained, we continue with the plan
to identify new opportunities and validate
the safe reuse of water not only from the
production process, but also incorporating
alternative sources such as rainwater. To this
end, we have an automated gutter system for
rainwater collection, which rejects the first
collection and allows us to valorize water
so that we can reuse it for flushing toilets,
cleaning, irrigation and general use.
In addition to reducing water use, several
initiatives are being carried out, among
which are the revitalization of the land and
surroundings (96% of the 217 hectares are
used for preventative maintenance, monitored
by a drone), the recovery of an adjacent dam
(capacity 156,000 m3 water), the monitoring
of local fauna, replanting and care of
native species (more than 4,000 trees) and
environmental preservation of the Taquara
River coastline.
“ANDINA BRAZIL IS
WORKING HARD ON ISSUES
RELATED TO WATER
EFFICIENCY AND WE ARE
PROUD TO BE ABLE TO
INFORM YOU ABOUT OUR
INITIATIVES".
Heider Damas Vieira, Environment
and Quality Supervisor at
Coca-Cola Andina Brazil.
10INFORMATION EXHIBITS132567894
Water ratio trend (WUR)
Coca-Cola Andina Brazil
1.64
1.53
1.52
VS
2017
-15.5%
1.39
1.39
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2017
2018
2019
2020
2021
*DQX - WUR World Benchmarking
“CONSIDERING A
REFERENCE PERIOD
PRIOR TO THE START
OF OPERATION OF THE
JACAREPAGUÁ REUSE PLANT,
IT IS POSSIBLE TO SEE A 39%
REDUCTION IN TREATED
EFFLUENT AND 28%
REDUCTION IN NETWORK
WATER CONSUMPTION,
CONSIDERING THE MONTHS
OF AUGUST 2019 AND 2021."
Carlos Evandro da Silva, Quality Manager of
Coca-Cola Andina Brazil.
∙ Duque De Caxias Plant: Increased capacity
to capture and reuse rainwater by resizing
pumps. Increased reuse of filter backwash
water. Resizing of reused water storage tanks.
∙ Ribeirao Preto Planta: Project in process
of biological reactor with membranes and
reverse osmosis system for treatment of
15,000 l/h of effluent that will supply the
cooling systems, chemical island, waste
area, toilets, boilers, washing machines and
CIP center.
As a result, in 2021 Coca-Cola Andina
Brazil achieved a water use ratio (WUR)
of 1.39 leveraged by reuse actions, which
represents the consumption of 1.39 liters of
water for each liter of beverage produced.
This implies a real improvement of 15.5%
and investments of 88.0 million reais in the
last five years (even growing in returnables
and stills, which require more water for their
manufacture).
SAFE WATER REUSE
One of the pillars of our water resource
management strategy is reuse; this practice
is a viable and reliable technical solution
to reduce water consumption in a safe and
progressive manner. Reusing water is one
of the greatest challenges in the beverage
industry, an aspect in which we highlight the
contributions of Coca-Cola Andina Brazil in
leading this process.
In all our operations, effluent treatment
plants allow us to reuse water in internal
and auxiliary processes. Reject water always
goes through a tertiary treatment system
to guarantee the parameters specified for
each use. Initially, we started using water
from alternative sources in processes such as
cleaning, irrigation and general tasks; now,
this integration is applied to the facilities,
processes and auxiliary equipment of
each plant, such as cooling towers, boilers,
scrubbers and cleaning plants.
The Coca-Cola Andina Brazil team
participates in the developments and
leads the identification and validation of
opportunities. In this regard, we would like
to highlight the main 2021 actions for our
three plants in Brazil, located in Jacarepaguá
(JPA), Duque de Caxias (DQX) and Ribeirao
Preto (RBP) with an investment in water
issues exceeding R$38.6 million.
∙ Jacarepaguá Plant: System for reuse of
treated effluent, improvement of reverse
osmosis membranes for water recovery and
expansion of the effluent treatment system.
10INFORMATION EXHIBITS132567894
ACCELERATED WATER INVESTMENT
PROGRAM
At our Renca plant in Chile, the industrial
team defined an accelerated investment
plan to focus efforts and further reduce
water consumption. This plan consists of
bringing forward future investments to 2022
for US$3.5 million to reduce the water ratio
of the Chile operations by 11% compared to
2020.
This program is part of our commitment and
allows us to maintain the accelerated pace
of lowering water consumption in priority
areas and thus achieve, by 2023, an average
water ratio of 1.50, which is 23% lower than
in 2022.
WATER MANAGEMENT
DIGITIZATION
At the Renca plant in Chile, the industrial
team carried out a project to increase
its capacity to manage water use by
implementing 4.0 manufacturing principles
based on the pillars of speed, flexibility and
efficiency.
Through digital transformation, a
new technological map was created,
which increased connectivity between
consumption and control points for
monitoring water use. With this, it is now
possible to manage online and immediately
the consumption of each production unit to
maintain efficiency at the maximum point of
each equipment.
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∙ Determine, sectorize and monitor the water
consumption tree and its critical points.
∙ Automation of readings with online processing
and network service.
∙ Comparison of actual versus ideal situation
online.
∙ Immediate alert in case of anomalies with
individual warning to the operation.
∙ Visualization in Power BI with AWS cloud
computing support.
∙ Digital tools for water consumption
optimization.
∙ Solving potential problems before they
become real.
∙ High level of team engagement with indicator
tracking.
∙ Automated monitoring routines to focus
resources on resolving anomalies.
The aim of the initiative is to take a new
step towards the smart factory, which
benefits from 4.0 industry technology,
approach and solutions to reduce water
consumption by optimizing the operation
of the production process.
“IN 2020 WE WERE
ABLE TO SOLVE A LARGE
NUMBER OF PROBLEMS,
ACHIEVE THE RESULT AND
SUSTAIN IT; THE GREAT
ACHIEVEMENT OF 2021 WAS
THAT WE CONSOLIDATED
THIS IMPROVEMENT AND
APPLIED THE CONTINUOUS
IMPROVEMENT
METHODOLOGY TO
INCORPORATE GOOD WATER
CONTROL PRACTICES INTO
THE FACTORY ROUTINE AND
EVERYONE'S ROLE”.
Felipe Sandoval, Andina Chile Supply
Manager, Renca Plant.
In 2021, Coca-Cola Andina Chile combined
traditional production technologies with
innovation to digitize its processes, which
was achieved through the following actions:
10INFORMATION EXHIBITS132567894
The modernization and upgrade of the plant
are a new step to increase water reuse options,
a reliable and accepted technical solution to
address scarcity issues. With these actions
we seek to optimize the use of our resources,
focusing on reducing the consumption of water
from primary sources and implementing reuse
in those activities that by their nature allow it.
This new approach allows us to consider the
effluent as a valuable resource.
Currently, Paresa's team integrates water reuse
for external auxiliary tasks such as: irrigation,
toilets, building cleaning and others.
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“DURING 2021, WE HAVE HAD
THE OPPORTUNITY TO CARRY
OUT INVESTMENTS FOCUSED ON
EFFLUENT TREATMENT, THUS
OPTIMIZING OUR PROCESSES
AND, IN ADDITION TO THIS, THE
CHALLENGE OF GENERATING
VALID REUSE OPTIONS. WE
HAVE THEREFORE BEEN ABLE
TO EXPAND THE OPTIONS FOR
POTENTIAL USE IN OTHER
STAGES OF OUR OPERATIONS,
ALWAYS FOCUSED ON REDUCING
WATER CONSUMPTION AT THE
PLANT LEVEL. HOWEVER, ALL
OF THE EFFLUENT GENERATED
AND SUBSEQUENTLY TREATED
AT OUR PLANT IS RETURNED TO
THE WATERCOURSE IN OPTIMAL
CONDITIONS OF QUALITY AND
COMPATIBILITY WITH THE
AQUATIC ECOSYSTEM”.
Carmen Sosa, Paresa's Environmental
Supervisor.
EXCELLENCE IN EFFLUENT
TREATMENT
At our Paresa bottling plant, located in the
city of San Lorenzo (Paraguay), we have a
major effluent treatment plant inaugurated
in 1998, which involved an initial investment
of US$5 million. This facility allows for
the treatment of 100% of our Operation's
wastewater, where the sanitary and
industrial effluents generated throughout
the industrial site are treated together. The
treatment system is combined: biological
treatment with the use of biofilters and
activated sludge in an aerobic process.
During 2021, the Quality and Sustainable
Development Management team, led by
the Engineering and Environment area,
implemented an investment project for
US$827,000 to modernize, upgrade and
increase the efficiency of the facilities.
With this purpose, the following
improvements were executed
∙ Automation of the plant control system,
upgrading of assets to the latest hardware and
software technology.
∙ Upgrading of biofilters with replacement
of the biological bed for the first stage of
treatment.
∙ Chlorination system upgrade and pump
replacement.
∙ Replacement of sludge dryer equipment
in order to increase its capacity and energy
efficiency.
∙ Acquisition of new equipment for the
laboratory.
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How do electric vehicles help the
environment? By integrating renewable
electric energy into our operations, electric
forklifts go in the right direction and
use this more sustainable energy more
efficiently.
Avoid noise pollution.
Decrease fossil fuel
consumption directly or
indirectly.
Help reduce emissions.
ENERGY MANAGEMENT AND
CLIMATE PROTECTION
SUSTAINABLE MOBILITY,
ELECTRIC FORKLIFTS
Our beverage industry is a sector that
produces high volumes of product flow, as a
result, it is a competitive environment and
suitable for applying electric vehicle solutions
and especially autonomous vehicles such as
laser guided vehicles (LGV). In Coca-Cola
Andina, since 2011 and with significant
investments, we have integrated autonomous
vehicles for cargo transportation to our
operations in Argentina, Brazil and Chile.
We currently have more than 66 vehicles
consolidating all operations.
“AUTONOMOUS VEHICLES
ARE PART OF THE FUTURE OF
FLEXIBLE MANUFACTURING
IN LOGISTICS, THEIR USE
RESULTS IN GREATER
SAFETY AND EFFICIENCY;
ACTIVE AND PASSIVE SAFETY
SYSTEMS PROTECT OUR
COLLABORATORS AND
PREVENT THE RISK OF
ACCIDENTS”.
The automated tasks performed by the
vehicles are varied, especially those related to
the management of storage and dispatch of
finished products and supplies to and from
the production lines. In Renca's operations,
they also perform automatic loading of cargo
in inter-depot transport. The autonomous
vehicles allow full traceability of the entire
operation of automatic internal warehouse
movements and real-time interface with
high-level systems (such as SAP), which
also complements and amplifies the various
stock management initiatives and real-time
customer and consumer shipments already
in progress.
“OUR BIGGEST CHALLENGE
IS TO MANAGE THE ENTIRE
INFORMATION SYSTEM
BEHIND THE LOGIC OF
AUTOMATIC OPERATION,
THIS INTERFACE IS THE
MOST SIGNIFICANT ISSUE
WHEN IMPLEMENTING
AUTONOMOUS VEHICLE
SOLUTIONS”.
Guillermo Saporittis, Logistics and
Distribution Manager of
Coca-Cola Andina Argentina.
Marcelo De Assis Xaud, Industrial
Engineering Engineer at
Coca-Cola Andina Brazil.
The advantages of using these vehicles
are: increased operational safety, increased
productivity of industrial operations
(allowing product lines to operate at
maximum capacity and high efficiency of
downstream logistics operations), integration
with optimization programs, reduction
of losses due to product breakage and
reduced emissions compared to vehicles that
consume fossil fuels such as diesel or LPG.
“THE AUTONOMOUS
EQUIPMENT IS ABLE TO
MAINTAIN A ROBUST ORDER
AND CONTROL INVENTORIES
ADEQUATELY. THE SAFETY
OF THE EQUIPMENT IS
FORMIDABLE”.
Ignacio Hernan Ríos Henríquez,
Rolling Planning Engineer at
Coca-Cola Andina Chile.
10INFORMATION EXHIBITS132567894
Case
Study
SOLAR-POWERED COLD EQUIPMENT
In 2020, Argentina's cold equipment
management area started the development
of a kit to power our Visicooler equipment
(display refrigerators) with solar energy. The
pilot test was carried out during 2021 in
customers in the city of Río Cuarto, Córdoba.
This initiative is a local development together
with the company Biogeneración S.A.,
specialists in renewable energies.
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“A COLD EQUIPMENT WITH
ELECTRONIC CONTROLLER
AND LED GENERATES A
SAVING OF 30% OF THE
ENERGY CONSUMED, THIS
IS A BREAKTHROUGH AND
WE ARE MIGRATING OUR
FLEET TO THESE MORE
EFFICIENT DEVICES; ON THE
OTHER HAND, WE ALREADY
EXCEEDED 100,000 UNITS
INSTALLED AND WE PLAN
TO REACH 135,000 BY 2025.
WE ARE COMMITTED TO
SEEKING SUSTAINABLE
ALTERNATIVES TO REDUCE
OUR NET FOOTPRINT; IN
THAT SENSE, OUR SOLAR
ENERGY PROJECT IS A VIABLE
OPTION”.
Carlos Flores, Manager of Refrigeration
Services at Coca-Cola Andina Argentina.
The solar kit consists of a photovoltaic cell
system, an inverter, a multiplexer mixer and
an intelligent energy flow reader. The results
are encouraging and allowed us to reduce
an average of 50% the consumption of grid
energy at the point of sale.
“OUR NEXT CHALLENGE
IS TO EXTEND THE SCALE
OF THE PILOT TEST TO
OTHER REGIONS AND TO
STANDARDIZE THE SOLAR
KIT”.
Carlos Flores, Manager of Refrigeration
Services at Coca-Cola Andina Argentina.
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BIOMASS ENERGY USE
At our Paresa bottling plant, located in the
city of San Lorenzo (Paraguay), we consume
mostly renewable electricity; in 2021,
around 90% of the energy (included in the
EUR energy ratio) came from sustainable
sources.
This is due to a combination of the use of
renewable electricity, which comes from
hydroelectric sources that are part of the
country's energy matrix, and the efforts
of the production plant to use biomass to
replace natural gas in boiler steam services.
Using biomass allows us to reduce our
environmental impact and value the
by-products of other local industries that
would otherwise be waste. It is important
to note that, from an environmental point
of view, the use of biomass energy does not
contribute to the increase of greenhouse
gases, since the balance of emissions to the
atmosphere is neutral.
The biomass we use at Paresa comes from
coconut kernels (a by-product of the
oil industry), wood chips and/or wood
briquettes (sawmill by-products); it is
used as fuel in three steam boilers with an
estimated annual consumption of 7,600Tn.
“OUR BIGGEST CHALLENGE
IS THE LOGISTICS TO
GET THE RAW MATERIAL
FROM THE SUPPLIERS,
SINCE BEING A SCRAP ITS
COLLECTION IS COMPLEX;
WE ARE CONSTANTLY
LOOKING FOR NEW BIOMASS
OPTIONS TO INCREASE ITS
VALUE AND ADD IT TO THE
THREE CURRENT ONES”.
Ernesto Alonso Cartes Cisterna, Head of
Services at Paresa.
In addition, the consumption cycle is
circular: the ashes generated in combustion
are recovered again by another company as
an input for the production of fertilizers.
“WE ARE TAKING ADVANTAGE
OF A PRODUCT THAT IS
PRACTICALLY WASTE IN
OTHER COMPANIES; WE
INCREASE THE VALUE
OF IT AND, IN TURN, OUR
ASHES ARE RECOVERED BY
ANOTHER SUPPLIER TO MAKE
FERTILIZERS, THE CYCLE IS
CIRCULAR AND HELPS THE
ENVIRONMENT”.
Astrid Brunetti Fernández, Environment,
Occupational Health and Safety Deputy
Manager.
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SUSTAINABLE PACKAGING
PUBLIC-PRIVATE PARTNERSHIPS
FOR COLLECTION
Public-private partnerships to boost post-
consumer PET recovery volumes, through
joint actions, for example: production and
placement of ecopoints, communication
campaigns, support events and sustainable
training.
The process consists of agreeing and
signing a framework agreement as a starting
point to begin joint work; then activities
are integrated and other triple impact
projects are included, such as inclusion,
empowerment of women and others.
During 2021, partnerships were made with
more than 20 Municipalities close to the
plants where we operate, this is the case
of the Municipality of Córdoba, Monte
Cristo, Godoy Cruz, San Luis, General Pico,
Venado Tuerto, among others. We highlight
alliances with NGOs such as Omas or
Rañatela (an association from Mendoza that
works with a network of women seamstresses
and people with disabilities).
"OUR INCLUSIVE RECYCLING
PROGRAMS ARE AN
EXAMPLE OF TEAMWORK,
WHERE DIFFERENT
COMPANIES JOIN TOGETHER
TO UNDERTAKE A COMMON
RESPONSIBILITY WITH
THE ENVIRONMENT,
COMMUNITIES AND PEOPLE".
Enrique Perez Esteves, Public Affairs
and Communication Manager,
Coca-Cola Andina Argentina
1,257
500
54
22
2018
2019
2020
2021
"THE MAIN CHALLENGES
IN THE COLLECTION OF
POST-CONSUMPTION
MATERIAL CONSIST OF:
WORKING TOGETHER
WITH THE COMMUNITIES
TO RAISE AWARENESS
ABOUT ENVIRONMENTAL
CARE AND RESPONSIBLE
CONSUMPTION, OFFERING A
DECENT AND COMPETITIVE
PRICE TO THE COLLECTORS,
IMPROVING THEIR
WORKING CONDITIONS,
AND FINALLY, ACHIEVING
THE RECOVERY OF THIS
MATERIAL THAT GOES FROM
BEING A WASTE TO AN INPUT
IN OUR VALUE CHAIN".
Tn
2021: Corresponds to 8.6% PET recovery.
Ignacio Cáceres, Head of Planning,
Coca-Cola Andina Argentina.
10INFORMATION EXHIBITS132567894
RECICLAR PELO BRASIL
Joint collection program with a group of 13 cooperative organizations from the packaging
business sector. Coalizão Embalagens was created in 2012; in 2015, an agreement was signed to
promote reverse logistics for general packaging3 at the federal level. Under this agreement, Coca-
Cola Andina Brazil carries out education and awareness-raising actions, structuring and training
of cooperatives, and cooperation of the actors in the reverse logistics value chain. This agreement
reaches more than 4,500 recyclers in Brazil and Coca-Cola Andina Brazil's operation operates in
three states; with 23 cooperatives and 381 recyclers impacted.
3 Non-hazardous products.
CONNECT, RECYCLE AND
COLLABORATE PROGRAM
COLLECTING IN LOMAS BAYAS,
ANTOFAGASTA
An initiative promoted by Coca-Cola
Chile, this project was launched in 2021
and seeks to strengthen base recyclers,
entrepreneurs and municipalities that
contribute to the sustainable management
of household waste.
Coca-Cola Andina's recycling program aims
to recycle plastic bottles and financially
support the María Ayuda Foundation,
specifically the Bárbara Kast Residential
Program, a home that houses around 20
vulnerable girls and young women.
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CONTRACT WITH COLLECTORS
At Coca-Cola Andina Brazil we have entered into an agreement with one of the main logistics
operators that collect post-consumer material, which allows us to strengthen the value chain
by incorporating and increasing the volume of post-consumer PET that is sent to the first stage
of recycling (grinding into flakes) and to value the discards from the subsequent processes of
the recycling value chain. The plan works in coordination with suppliers of PET resin and
preforms, who actively participate in the recycling and manufacturing process of PET resin. As
a result, the accumulated collection of Coca-Cola Andina Brazil increased by 48% from 5,041
Tn in 2020 to 7,463 Tn in 2021.
Collector
"sucateiro"
Selective
collection
and landfill
sorting
PET
collection
points
Industrialization
contract
Scrap
recovery
Reverse
logistics
operator
Flakes
Recycling
Food grade
PETr Resin
Supplier of
PET preforms
Coca-Cola
Andina Brazil
Scrap
recovery
Bottles
“OUR AMBITION AT COCA-COLA ANDINA IS TO COLLECT AND
RECYCLE THE EQUIVALENT OF 100% OF THE CONTAINERS
COMMERCIALIZED BY 2030, THIS COMMITMENT REQUIRES A
SIGNIFICANT EFFORT AND WE ARE COMMITTED TO IMPLEMENTING
NEW SOLUTIONS TO ACHIEVE IT”.
Rodrigo Klee, Industrial Director of Coca-Cola Andina Brazil.
10INFORMATION EXHIBITS132567894
MY NEIGHBORHOOD WITHOUT WASTE
An initiative that connects the residents of the neighborhoods of Los Laureles, Herrera, Las
Mercedes, Loma Pytä and Las Lomas with basic recyclers from the Asociación de Recicladores
de Barrio San Francisco in the capital city of Asunción through a web platform.
The initiative has managed to increase by 20% the recovery of different recyclable materials
from the beginning in these five neighborhoods of Asunción, which represented a higher
income for the recyclers of the Barrio San Francisco Association, as well as workshops and
training on recycling with the neighbors enrolled in the program and messages about the
importance of recycling at home.
At the end of the first stage of the initiative we have produced an audiovisual material with
the aim of valuing and giving visibility to the work of basic recyclers and highlighting the
work carried out by the several players involved in the platform of differentiated collection
of materials. The project is implemented jointly with the Municipality of Asunción and the
Ministry of Environment and Sustainable Development (MADES) and the United Nations
Development Program (UNDP) through the Sustainable Asunción project, executed by
Soluciones Ecológicas, with the support of the Moisés Bertoni Foundation in alliance with the
Association of Recyclers of Barrio San Francisco.
APLICACIÓN MÓVIL
SOLUCIONES ECOLÓGICAS
(ECOLOGICAL SOLUTIONS MOBILE
APPLICATION)
We supported the development of a mobile
application by the company Soluciones
Ecológicas to identify with a QR code the
geolocation of the more than 50 EcoPoints
that can receive our recyclable containers.
LUQUE RECICLA
The initiative is part of the Mi Ciudad
Recicla project, promoted by Latitud R with
the support of the Coca-Cola Foundation. It
consists of installing 10 EcoPoints in the city
and carrying out an Eco Challenge among
10 neighborhood commissions to promote
the recovery of recyclable materials.
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10
Participating neighborhood
commissions
More than
34 tons.
of recycled materials
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COMMITTED TO OUR
SUPPLIERS
KOARIBA PROJECT
In the year 2021, Coca Cola-Andina
continued on the path of digital
transformation of the purchasing process,
standardizing the supply processes with
a corporate vision, seeking to provide
satisfaction to its internal customers, buyers
and suppliers, increasing productivity and
operational efficiency. SAP ARIBA is a
cloud-based solution that will complement
the functionalities of the current SAP ERP
(resource planning).
As a result of having successfully
implemented the first and second phases
of the project, we already have the SLP
(Supplier Lifecycle & Performance) module
integrated to the planning process, through
which any company in the world interested
in becoming a supplier can generate its self-
registration and subsequent maintenance of
its data. This ensures accessibility and equal
opportunities, broadens the offer and also
streamlines and digitizes the entire supplier
registration and data management process.
In addition, the SOURCING module
began to be used in an integrated manner,
allowing internal customers, buyers and
suppliers to carry out negotiation processes
such as bids, quotations and auctions in
a 100% digital manner, thus achieving
complete traceability and transparency for
each of the parties involved throughout the
entire negotiation, selection and awarding
process.
In mid 2021, the third phase of the
KOARIBA project began, which
includes the implementation of two new
modules: PURCHASING CATALOG and
COMMERCE AUTOMATION.
In 2022 we will complete the
implementation of the modules and begin
the last stage of the change management
plan, which has been carried out since
the beginning of the project under the
A.D.K.A.R. methodology. This corresponds
to reinforce learning so that the change is
maintained over time, under the execution
of different activities that allow both internal
collaborators and suppliers to strengthen
knowledge about the modules and the
tool in general, promoting the usability,
compliance and control of Coca-Cola
Usability Metrics:
Change Management Metrics:
Total number of
releases sent
19
Number of training sessions
Category
Phase 1 Phase 2 Phase 3
Key Users
End Users
Guardians
4
10
1
6
9
10
2,022
1
2,022
Total number of
training hours
118 HRS
Number of people
trained
133
(KU + UF + GUA)
Training portals
4
on campus KOARIBA
programs of each operation
Total number of
ARIBA events
2,432
Bids
173
Quotations
2,259
Number of suppliers
1,712
Participation percentage
60-40
Number of internal
collaborators in ARIBA
708
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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.
ADR: American Depository Receipts.
Contour Bottle: Classic Coca-Cola bottle.
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.
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.
GDA: Guideline Daily Amounts.
GHG: Greenhouse gases
GSM: General Shareholders’ Meeting.
Unit Cases: 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).
FTSE4Good: Series of sustainable
investment stock indices launched in 2001
by the FTSE Group.
KORE: The Coca-Cola Company Operating
Requirements. Policies and practices of The
Coca-Cola Company regulating bottlers in
several aspects.
LTIR: Lost Time Incident Ratio.
LTISR: Lost Time Incident Severity Ratio.
NARTD: Non alcoholic beverages ready to
Drink.
NYSE: New York Stock Exchange.
On premise: Sales channel for restaurants,
pubs, hotels and casinos.
PET: Polyethylene terephthalate.
Ref PET: Refillable PET. The returnable
plastic bottle.
rPET: Recycled PET.
SAP: Systems, Applications and Products.
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.
SSDs: Sparkling Soft Drinks.
Stills: Categories of non-alcoholic non-
carbonated beverages.
TCCC: The Coca-Cola Company.
10INFORMATION EXHIBITS132567894
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 2021 Integrated Memory
(free translation from the original in Independent Spanish)
To the President and Directors of Embotelladora Andina
Scope
We performed an independent limited assurance review of the
information and data presented in Embotelladora Andina 2021
Integrated Memory.
Preparation of the Integrated Memory is the responsibility of the
Management of Embotelladora Andina. The Management of
Embotelladora Andina is also responsible for the data and
affirmations included in the Integrated Memory, definition of the
scope and management and control of the information systems
that have provided the reported information.
Our limited assurance procedures were carried out based on the
specific review of material topics defined by Embotelladora Andina.
Our responsibility
Our responsibility is limited to the procedures and indicators previously
mentioned, corresponding to a limited assurance which is the basis for
our Conclusions. By default, we do not apply reasonable verification
procedures, the objective of which is to express an external verification
opinion on the 2021 Integrated Memory of Embotelladora Andina.
Consequently, we do not express an opinion.
Standards and Limited Assurance procedures
Conclusions
Our review was 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; the guidelines for the
preparation of sustainability reports under the Global Reporting
Initiative (GRI); and the Sustainability Accounting Standards
Board (SASB).
We conducted our limited assurance procedures to:
► Determine whether the information and data presented in
the 2021 Integrated Memory are duly supported by
evidence.
► Verify the traceability of the information disclosed by
Embotelladora Andina 2021 Integrated Memory.
► Determine whether Embotelladora Andina has prepared its
2021 Integrated Memory in accordance with the Content
and Quality Principles of the GRI Standards.
► Confirm Embotelladora Andina self-declared “Core” option
of the GRI Standards has been applied to its report.
Subject to the limitations of scope noted above and based on our
procedures for this limited assurance of Embotelladora Andina 2021
Integrated Memory, we conclude that nothing has come to our
attention that would cause us to believe that:
► The information and data disclosed in Embotelladora Andina
2021 Integrated Memory are not presented fairly.
► Embotelladora Andina 2021 Integrated Memory has not been
prepared in accordance with the GRI Standards for the
preparation of sustainability reports and the SASB indicators
selected by Embotelladora Andina.
► The Embotelladora Andina self-declared option does not meet
the GRI Standards requirements for the Core option.
Improvement recommendations
Without affecting our conclusions as set out above, we have
detected some improvement opportunities to the Embotelladora
Andina 2021 Integrated Memory preparation process which are
detailed in a recommendations report presented to Embotelladora
Andina Administration.
Work performed
Truly Yours,
Our limited assurance procedures included enquiries to the
Management of Embotelladora Andina involved in the
development of the Integrated Memory, in addition to other
analytical procedures and sampling methods as described
below:
► Interviews with key Embotelladora Andina personnel to
assess the 2021 Integrated Memory preparation process,
the definition of its content and its underlying information
systems.
► Review of supporting documents provided by Embotelladora
Andina.
► Review of formulas and calculations by way of recalculation.
► Review of the 2021 Integrated Memory to ensure its
phrasing and format does not mislead the reader regarding
the information reported.
Elanne Almeida, Partner
March 3rd, 2022
I-00089/22
RGE/lgc
60240688
The directors of Embotelladora Andina S.A.
and its Chief Executive Officer, all signatories
to this statement, are responsible under oath
for the truthfulness of all the information
provided in the 2021 Integrated Annual
Report, in compliance with General Rule No.
30 of Chile's Financial Market Commission
dated November 10, 1989.
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JUAN CLARO GONZÁLEZ
Chairman of the
Board of Directors
Rut 5.663.828-8
SALVADOR SAID SOMAVÍA
Vice-Chairman of the
Board of Directors
Rut 6.379.626-3
JOSÉ ANTONIO GARCÉS SILVA
Director
Rut 8.745.864-4
EDUARDO CHADWICK CLARO
Director
Rut 7.011.444-5
GEORGES DE BOURGUIGNON ARNDT
Director
Rut 7.269.147-4
FELIPE JOANNON VERGARA
Director
Rut 6.558.360-7
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
MARCO ANTONIO ARAUJO
Director
Foreign citizen
RODRIGO VERGARA MONTES
Director
Rut 7.980.977-2
DOMINGO CRUZAT AMUNÁTEGUI
Director
Rut 6.989.304-K
MIGUEL ÁNGEL PEIRANO
Chief Executive Officer
Rut 23.836.584-8
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CONTENT AND EDITING SUPPORT
www.deva.es
GENERAL COORDINATION
Carolina Novoa
Mara Rey Caro
Federico Mildenberger
Mariana Paz González Cortés
Jenny Navas Ramírez
DESIGN
www.disenohumano.cl
COLLABORATION
Juan Antonio Miranda, Neiva Vieira, Sheila
Chiriani, Carlos Moncada, Suenia Silva,
Victoria Claro, Francisca Ariztía, Gonzalo
Aguirre, Bruno Damaso, Sergio Vallejos,
Constanza Brignone, Carlos Flores, Agustina
Cabanillas, Juan Pablo Velasco, Guillermo
Saporittis, Luciana De Menezes Oliveira De
Sant Anna, Heider Damas Vieira, Carlos
Evandro Da Silva, Marcelo De Assis Xaud,
José Luis Palacios, Felipe Sandoval, Ignacio
Hernan Ríos Henríquez, Pia Fertilio, Astrid
Brunetti, Carmen Sosa, Ernesto Alonso
Cartes Cisterna, Darmy Martinez.
WE INVITE YOU TO SEND
US YOUR SUGGESTIONS,
QUESTIONS OR ANY
COMMENTS RELATED TO
THIS INTEGRATED REPORT
TO THE FOLLOWING E-MAIL:
ANDINA.IR@KOANDINA.COM
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1WE ARE COCA-COLA ANDINA2345678910