Ownership and Market Influence - The Coca-Cola Company owns 14.65% of the Series A shares, representing 7.33% of total shares, significantly influencing the company's operations and financial results[33]. - The company reported that 28% of its net sales in 2023 were generated in Brazil, 18% in Argentina, and 9% in Paraguay, indicating significant reliance on these markets[89]. - The company’s operations in Brazil accounted for 28.5% of net sales in 2023, emphasizing the critical nature of this market for revenue generation[108]. - Argentina's operations represented 17.1% of the company's assets and 24.8% of net sales in 2024, indicating significant exposure to Argentine economic conditions[133]. - The company’s operations in Paraguay represented 12.3% of total assets and 8.5% of net sales in 2023, highlighting the importance of this market[160]. Economic and Market Conditions - Increased health concerns regarding sugar and sweeteners may lead to reduced demand for beverages, potentially impacting profitability[42]. - The beverage market is highly competitive, with local and regional brands posing significant challenges, which could adversely affect financial performance[43]. - Raw material costs, particularly for concentrate, sweeteners, and packaging, are subject to volatility and may impact profitability if prices rise[44]. - Water scarcity and quality issues could lead to increased production costs and capacity constraints, affecting overall profitability[48]. - Climate change may result in increased costs and operational disruptions due to extreme weather conditions and regulatory responses[52]. - The company faces risks from fluctuating utility and oil prices, which could materially impact operational costs[46]. - The company must adapt to evolving consumer preferences regarding health and sustainability to maintain market share and financial results[40]. - Legal and regulatory changes regarding water resources could significantly affect operational costs and availability[50]. - The company faces significant risks related to environmental, social, and governance (ESG) goals, which could harm its reputation and sales if not met[53]. - Investor advocacy groups are increasingly scrutinizing the company's ESG practices, potentially affecting investment decisions if stakeholders are dissatisfied[54]. Regulatory and Legal Challenges - New labeling and advertising restrictions in various countries may adversely impact product sales and operational results[55]. - The company is subject to complex regulations that may increase operating costs and affect financial performance[77]. - Environmental regulations may lead to increased compliance costs and affect consumer demand for products in plastic bottles[80]. - Legal proceedings and investigations related to monopolistic practices could result in significant liabilities and reputational damage[82]. Geopolitical and Economic Risks - The perception of risk in emerging markets may hinder access to international capital markets and adversely affect financial performance[73]. - The company is exposed to geopolitical risks, including trade tensions and economic slowdowns, which could materially impact its business and financial condition[92]. - Civil unrest and political uncertainty in Chile could adversely affect economic conditions and the company's operations[97]. Currency and Inflation Impact - The Chilean peso experienced significant fluctuations, averaging 944 Ch$/US$ in 2024 and ending the year at 996 Ch$/US$, which could impact reported financial results[102]. - Inflation rates in Brazil were reported at 5.8% in 2022, 4.6% in 2023, and 4.8% in 2024, which could impact the company's cost structure and pricing strategies[113]. - Argentina's inflation rates were recorded at 211.4% in 2023 and 117.8% in 2024, reflecting ongoing economic instability[140]. - The Argentine peso has experienced significant fluctuations, impacting the ability of companies to meet foreign currency obligations and affecting domestic market stability[145]. - The Brazilian real appreciated 7% in 2022 and 2023 but depreciated 28% in 2024 against the U.S. dollar[116]. - A significant portion of raw materials in Brazil is priced in U.S. dollars, making the depreciation of the Brazilian real adversely affect costs and margins[117]. - Inflationary pressure from the depreciation of the real may lead to restrictive government policies, potentially increasing interest rates and negatively impacting the Brazilian economy[118]. Strategic Initiatives and Investments - Total capital expenditures increased from Ch$173,675 million in 2022 to Ch$222,620 million in 2023, and are projected to reach Ch$302,519 million in 2024, primarily due to higher productive investments in Argentina and Brazil[220][221]. - In 2024, capital expenditures in Brazil are expected to rise significantly to Ch$115,079 million, up from Ch$54,082 million in 2023[220]. - Argentina's capital expenditures are projected to increase from Ch$44,729 million in 2023 to Ch$89,694 million in 2024[220]. - The company has been the principal manufacturer of Coca-Cola products in Chile since 1946, despite no longer being the sole bottler[179]. - In 2012, the company completed a merger with Embotelladoras Coca-Cola Polar S.A., granting former shareholders of Polar a 19.68% ownership interest in the merged entity[183]. - In January 2018, the company acquired 100% ownership of Comercializadora Novaverde S.A., a company dedicated to the production and distribution of juices and ice cream[186]. - In August 2021, the company signed a distribution agreement for wine products with Viña Santa Rita, covering brands such as Doña Paula and Santa Rita[189]. - In September 2021, the company acquired 50% of the Therezópolis beer brands for R$35 million[204]. - In April 2022, the company signed a Master Agreement with Campari for the exclusive distribution of Campari-branded beverages in Brazil until December 31, 2026[205]. - In November 2022, the company signed a Copacking Agreement with Monster for a term of 10 years[206]. - The company began distributing AdeS products in Chile in July 2017 after the acquisition from Unilever[185]. - The company holds a 10.26% ownership interest in Leão Alimentos e Bebidas Ltda. as of August 2017[201]. - The company has restructured its juice and non-carbonated beverage business in Chile, incorporating other Coca-Cola bottlers as shareholders[181]. - EDASA's ownership interest in Alimentos de Soja S.A. has increased to 14.82% as of the date of the annual report[213]. - EDASA began distributing AdeS products in July 2017 and has been involved in the energy drinks market since February 2018 through a partnership with Monster Energy Company[214][218]. - A distribution agreement with Grupo Peñaflor S.A. was signed in June 2022, valid until June 2026, for alcoholic beverages in specific provinces[215]. - PARESA started distributing alcoholic beverages in September 2023 under a Logistics and Sales Master Agreement with Cervepar S.A., covering several departments in Paraguay[219]. - The Coca-Cola Company and its bottlers in Latin America completed the acquisition of the AdeS vegetable protein-based beverage business from Unilever in March 2017[217]. Human Resources and Operational Challenges - The company faced challenges in recruiting and retaining key personnel, which could disrupt strategic business plans and affect financial performance[88]. - The company may encounter challenges in successfully implementing expansion strategies and achieving operational efficiencies from acquisitions[59]. - Weather conditions and natural disasters could negatively impact consumer demand and distribution capabilities[62].

Company Overview - Coca-Cola Andina was incorporated in 1946 and is the principal manufacturer of Coca-Cola products in Chile since then[78]. - In 2012, Coca-Cola Andina merged with Embotelladoras Coca-Cola Polar S.A., granting former Polar shareholders a 19.68% ownership interest in the merged entity[80]. - In 2018, Coca-Cola Andina completed the acquisition of 100% of Comercializadora Novaverde S.A., a company focused on juices and ice cream production[82]. - Coca-Cola Andina holds a 10.26% ownership interest in Leão Alimentos e Bebidas Ltda., a key player in the iced tea market in Brazil[83]. - The company has a 35% stake in Coca-Cola Del Valle, focusing on juices and non-carbonated beverages[80]. - Coca-Cola Andina has been actively involved in mergers and acquisitions to enhance its market presence and product diversity across South America[80][82]. Distribution Agreements and Partnerships - In 2021, Coca-Cola Andina signed a distribution agreement for Estrella Galicia-branded beers in Brazil, with exclusivity throughout the territory[85]. - As of August 2023, Coca-Cola Andina signed a distribution agreement with Perfetti Van Melle for their branded portfolio in Brazil, valid until 2028[85]. - A distribution agreement with Grupo Peñaflor S.A. for alcoholic beverages in Mendoza, San Juan, and San Luis provinces is set to expire in June 2026[88]. - The company began distributing Monster products in Argentina in February 2018 and has since expanded its energy drink offerings[88]. - The distribution of alcoholic beverages includes brands like Budweiser, Corona, and Heineken across various countries[101]. Financial Performance - In 2023, the company reported consolidated net sales of Ch$2,618,437 million and a total sales volume of 882.6 million unit cases of beverages[94]. - The soft drinks segment accounted for 62.2% of consolidated net sales in 2023, highlighting its significance in the overall revenue[94]. - In 2023, the company reported total net sales of Ch$535,018 million, a 13.3% increase from Ch$472,404 million in 2022[107]. - Net sales in Chile rose by 6.1% to Ch$1,191,974 million in 2023, attributed to higher average prices despite a 3.1% decrease in sales volume[197]. - Brazil's net sales increased by 17.0% to Ch$745,383 million in 2023, with a sales volume growth of 8.2%[201]. - Argentina's net sales dropped significantly to Ch$460,338 million in 2023, a decline of 33.2% from Ch$688,705 million in 2022, primarily due to currency translation effects and price controls[197]. Capital Expenditures and Investments - Capital expenditures increased to Ch$222,620 million in 2023, up from Ch$173,675 million in 2022, primarily due to new projects[89]. - The company plans to allocate approximately US$250 million for capital expenditures in 2024, focusing on machinery and infrastructure improvements across various plants[93]. - The company has initiated several sustainability projects, including water treatment and recycling initiatives, as part of its capital expenditure plans[90]. - The company has budgeted for improvements in information technologies to enhance client and consumer relationships, incorporating more technological solutions[93]. Market Presence and Sales Volume - In 2023, Chile accounted for 35.1% of the company's volume and 45.5% of consolidated net sales[102]. - The company is the largest bottler of Coca-Cola trademark beverages in Chile and Argentina, and the third largest in Brazil[94]. - The company maintains a diverse customer base, with Mom & Pops accounting for 33% of sales in Brazil and 38% in Paraguay[108][118]. - In Brazil, the company accounted for 34.1% of volume and 28.5% of consolidated net sales in 2023[104]. - Paraguay represented 8.8% of the company's volume and 8.5% of consolidated net sales in 2023, with net sales of juices, waters, seed-based beverages, sports, and energy drinks totaling Ch$49,130 million[115]. Regulatory Compliance and Environmental Standards - The company must comply with various government regulations across its franchise territories, including labor, health, and environmental laws[159]. - Environmental regulations in Chile and Brazil are evolving, with potential future laws that could impose additional restrictions on operations[162][166]. - The company has received all necessary permits and certifications for its operations in Brazil and Chile, ensuring compliance with quality and environmental standards[166]. - The company is currently in compliance with all material regulatory requirements in its franchise territories as of December 31, 2023[159]. Leadership and Governance - The board of directors consists of fourteen members, with terms expiring on April 25, 2024[258]. - Juan Claro has been the Chairman since 2004, bringing extensive experience in civil engineering and business representation[261]. - Gonzalo Said has served on the board since 1993, specializing in finance and corporate governance, with 30 years in the beverage industry[261]. - The company emphasizes the importance of experienced leadership in navigating market challenges and opportunities[276]. - The board aims to leverage Rossi's expertise to enhance operational efficiency and drive growth initiatives[276].

Financial Performance and Market Dependency - The Coca-Cola Company accounted for 61% and 64% of the company's net sales in 2021 and 2022, respectively, highlighting the significant reliance on this relationship[29] - As of December 31, 2022, Chile represented 44.1% of the company's assets and 42.3% of net sales, indicating significant reliance on the Chilean market[96] - Operations in Brazil represented 31.5% of the company's assets and 24.0% of net sales in 2022, highlighting the importance of economic conditions in Brazil[114] - Operations in Argentina accounted for 13.1% of the company's assets and 25.9% of net sales in 2022, reflecting the economic dependency on Argentina[131] - Paraguay operations represented 11.3% of total assets and 8.0% of net sales in 2022[166] Competition and Market Challenges - The company faces increasing competition in the beverage market, which may adversely affect net profits and margins[38] - The company may face challenges in successfully implementing expansion strategies and achieving operational efficiencies from acquisitions, which could adversely affect financial results[55] - Adverse weather conditions and natural disasters can disrupt production and distribution, impacting sales volumes[58] - The COVID-19 pandemic has created significant economic uncertainty, affecting sales channels and potentially disrupting supply chains[60] Regulatory and Compliance Risks - The company is subject to complex and changing regulations, which may increase operating costs or alter consumer demand[30] - The company is subject to significant advertising restrictions and labeling requirements in countries like Chile and Argentina, which may adversely affect product sales and operational results[51] - The company is subject to increasing environmental regulations, which may lead to higher operating costs and changes in consumer demand[77] - In Chile, Law No. 21,368 limits the generation of disposable products and regulates plastic use, potentially impacting product consumption[78] - The company is subject to complex and changing regulations across its operating territories, which may increase operating costs and affect financial performance[75] Economic Conditions and Inflation - The Chilean economy contracted by 5.8% in 2020, grew by 11.7% in 2021, and grew by 2.4% in 2022, impacting the company's operations[98] - Inflation in Chile rose significantly to 12.8% in 2022, up from 7.2% in 2021, primarily due to government economic aid measures[109] - The Central Bank of Chile increased the Monetary Policy Rate to 11.25% in 2022 to combat inflation, which may restrict credit availability and economic growth[109] - Inflation in Brazil was recorded at 5.8% in 2022, following 10.1% in 2021, which may impact the company's costs and profit margins[121] - Argentina's inflation rates were recorded at 36.1% in 2020, 50.9% in 2021, and 94.79% in 2022, indicating severe inflationary pressures[140] Currency and Geopolitical Risks - The company reports results in Chilean pesos, with 24% of net sales generated in Brazil and 26% in Argentina, making it vulnerable to currency depreciation[89] - The Chilean peso experienced high volatility, ending the year at $856 CH$/US$ after reaching $1.051 CH$/US$ in July 2022[106] - The Brazilian real depreciated by 7% in 2021 but appreciated by 7% in 2022 against the U.S. dollar, indicating significant currency volatility[124] - The company is exposed to geopolitical risks, including tensions between Russia and Ukraine, which could disrupt global markets and impact financial results[93] Environmental and Social Governance (ESG) Concerns - The company faces risks related to achieving its environmental, social, and governance (ESG) goals, which could negatively impact its reputation and sales if not met[48] - Investor advocacy groups are increasingly prioritizing ESG matters, which may lead to reconsideration of investments if the company's actions are deemed unsatisfactory[49] - Water scarcity and poor water quality pose risks to production costs and capacity, with potential reputational damage[42] - Climate change may lead to increased costs and disruptions in supply chains, affecting the availability of key agricultural commodities[47] Labor and Operational Risks - Collective bargaining agreements are critical, and failure to renew them satisfactorily could lead to work stoppages, impacting operations and revenues[74] - The company may face challenges in recruiting and retaining key personnel, which could disrupt business operations and financial performance[88] - Instability in utility services and oil prices could adversely impact operational results, particularly due to recent global fuel price increases[41] - The company recognizes cyber threats as a risk and has implemented a cybersecurity strategy to enhance resilience against potential attacks[66] Taxation and Financial Liabilities - The company faces significant tax liabilities in Brazil, with ongoing proceedings amounting to approximately R$2.82 billion (about US$546.32 million) related to value-added tax[86] - In Argentina, the income tax rate increased from 30% to 35% as of June 2021, affecting the company's financial condition[84] - The company faces risks from potential changes in tax laws in Brazil, which could increase tax burdens and negatively affect profitability[127] Strategic Partnerships and Acquisitions - The merger with Embotelladoras Coca-Cola Polar S.A. granted former shareholders a 19.68% ownership interest in the merged entity[192] - In 2018, the acquisition of 100% of Comercializadora Novaverde S.A. was completed, expanding product offerings[195] - The company signed distribution agreements for various brands, including Monster Energy and Diageo, enhancing its product portfolio[194][196] - The establishment of Re-Ciclar S.A. aims to produce recycled resin for the Coca-Cola system and third parties[200] - In September 2021, Andina Brazil acquired 50% of the Therezópolis beer brands for R$35 million[213]

Cash Flow - Cash flows from operating activities in 2020 amounted to Ch$278,769 million, an increase of 9.2% compared to Ch$255,148 million in 2019[387]. - Cash flows from investing activities in 2020 were Ch$223,879 million, significantly higher than Ch$110,048 million in 2019, primarily due to increased purchases of short-term financial instruments[388]. - Financing activities generated a positive cash flow of Ch$113,041 million in 2020, an increase of Ch$240,153 million compared to 2019, mainly due to a new bond issuance[391]. Liabilities - Total liabilities as of December 31, 2020, were Ch$1,616,504 million, reflecting a 13.7% increase from the previous year[393]. - Current liabilities decreased by Ch$33,602 million, or 8.2%, compared to December 2019, mainly due to lower accounts payable[393]. - Non-current liabilities increased by Ch$228,062 million, or 22.6%, primarily due to the recognition of new bond liabilities[394]. - As of December 31, 2020, the company had 23 unused short-term credit lines totaling Ch$150,107 million available[392]. - The company is in compliance with all its debt covenants as of December 31, 2020[394]. - The weighted average interest rate for bond obligations was 3.7% in UF and 4.5% in US$[394]. - As of December 31, 2020, the Company's total contractual obligations amounted to Ch$1,149,823 million, with more than 5 years obligations totaling Ch$642,937 million[427]. - The Company maintains a restriction that Net Consolidated Financial Liabilities shall not exceed Consolidated Equity by 1.20 times[413]. - The Company has a remaining outstanding amount of Senior Notes of US$365 million after the partial repurchase[419]. Dividends and Corporate Actions - Chilean Corporate Law mandates a minimum distribution of 30% of annual profits as dividends[384]. - The Company undertook a partial repurchase of Senior Notes amounting to US$210 million, which was refinanced with the placement of Series F Local Bonds in the Chilean market[413]. - The Company issued US$300 million in corporate bonds due 2050 with an annual coupon rate of 3.950% for general corporate purposes, including potential acquisitions[421]. Risk Management - The Company reported that its results are likely to be influenced by changes in consumer demand and potential price increases in raw materials such as sugar and resin[423]. - The Company has contracted derivatives (Cross Currency Swaps) to cover 100% of UF denominated financial obligations, redenominating them to Chilean pesos[411]. - The Company must maintain Consolidated Assets free of any pledge or lien by an amount at least equal to 1.3 times the Issuer's unsecured consolidated current liabilities[414]. - The Company has no material off-balance sheet arrangements as of December 31, 2020[425]. - The Company is subject to risks from exchange rate fluctuations, particularly potential devaluations of local currencies against the U.S. dollar[424].

As filed with the Securities and Exchange Commission on April 29, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 Commission file number 001-13142 Embotelladora Andina S.A. Miraflores 9153, 7th Floor Renca - Santiago, Chile (Address of principal executive offices) Ignacio Morales, Tel. (56-2) 2338-0520 E-mail: ignacio.morales @koandina.com Mi ...

Cash Flow and Financial Activities - Cash flows from operating activities in 2018 amounted to Ch$235,279 million, a decrease of 4.3% compared to Ch$247,960 million in 2017, primarily due to higher payments to suppliers[482]. - Cash flows from investing activities in 2018 totaled Ch$118,086 million, down 30.1% from Ch$168,831 million in 2017, with lower investments in property, plant, and equipment amounting to Ch$47,794 million[483]. - Cash flows from financing activities in 2018 recorded a cash utilization of Ch$87,536 million for dividend distributions, an increase of 16.7% compared to Ch$74,968 million in 2017[485]. Liabilities and Obligations - Total liabilities as of December 31, 2018 were Ch$1,350,790 million, reflecting a 3.8% increase from Ch$1,299,000 million in 2017, mainly due to the restatement of bonds payable in U.S. dollars[491]. - Non-current liabilities increased to Ch$930,928 million in 2018 from Ch$873,339 million in 2017, driven by higher financial liabilities[491]. - Current liabilities decreased slightly to Ch$419,862 million in 2018 from Ch$428,287 million in 2017[492]. - As of December 31, 2018, total contractual obligations amounted to Ch$1,174,789 million, with Ch$136,284 million due within one year[526]. Financial Management and Coverage - The company maintains a net financial coverage level greater than 3.0 times, calculated as EBITDA over net financial expenses for the past 12 months[506]. - The company is required to maintain consolidated financial liabilities not exceeding consolidated equity by 1.20 times[507]. - The company must maintain consolidated assets free of any pledge or lien at least equal to 1.3 times its unsecured consolidated current liabilities[515]. Compensation and Governance - For the year ended December 31, 2018, fixed compensations paid to Coca-Cola Andina's executive officers amounted to Ch$3,782 million, down from Ch$4,020 million in 2017[559]. - Performance bonuses for the same period totaled Ch$2,517 million, compared to Ch$2,769 million in 2017, indicating a decrease of approximately 9.1%[559]. - Total compensation paid to directors in 2018 was Ch$1,518,000, which included Ch$360,000 for the Executive Committee and Ch$72,000 for the Audit Committee[561]. - The highest individual director compensation was Ch$144,000 for Juan Claro, the Chairman of the Board[561]. - The company has a performance bonus structure that is contingent on meeting personal and company goals[558]. - The board of directors consists of 14 members, with various backgrounds in business and law, contributing to diverse governance[535][536][537]. Employment and Labor Relations - As of December 31, 2018, the company employed a total of 17,386 employees across various countries, including 4,174 in Chile, 7,895 in Brazil, 3,176 in Argentina, and 1,600 in Paraguay[574]. - In Chile, 64.29% of employees with indefinite work contracts were members of labor unions as of December 31, 2018[580]. - The company had 595 temporary employees in Chile and 369 in Argentina as of December 31, 2018, with a customary increase in employees during the South American Summer to meet peak demand[574]. - The company has collective bargaining agreements in effect for various labor unions, with agreements covering different employee groups and effective dates extending into 2021[580]. Shareholder Information - The controlling shareholders hold 263,718,512 shares, representing 55.72% of the total class A shares as of December 31, 2018[594]. - Approximately 86.65% of Series A shares and 78.48% of Series B shares are held in Chile as of December 31, 2018[595]. - The Coca-Cola Company holds 69,348,241 shares, representing 14.65% of the total class A shares[594]. - The company has a shareholders' agreement that requires a majority vote for resolutions, with certain matters requiring unanimous decisions[596]. Related Party Transactions - Related party transactions were approved by the Company's Board of Directors and were consistent with prevailing market prices[600]. - The management believes it has complied with Chilean Public Company law regarding related party transactions as of December 31, 2018[601].