Embotelladora Andina S.A.(AKO_B) - 2018 Q4 - Annual Report

Cash Flow and Financial Activities - Cash flows from operating activities in 2018 amounted to Ch$235,279 million, a decrease of 4.3$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$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$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].