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C HI We are a great company, A R G where happiness has no borders. – 4 – Table of Contents Additional Our Information 39 Company 5 • Annual Report • Annual 2017 Andina Coca‑Cola

Embotelladora Andina S.A. Open Stock Corporation

Chilean Tax ID: 91.144.000-8 Address: Miraflores 9153, Comuna de Renca, Santiago.

The contour Coca‑Cola bottle design, elements of Coca‑Cola marketing campaigns, the logos and all references to the trademarks of The Coca‑Cola Company contained in this Annual Report are the property of The Coca‑Cola Company. All artwork and photographs contained in this annual report are the property of Embotelladora Andina S.A.

Corporate Office Av. Miraflores 9153, Piso 7, Renca. Santiago de Chile Tel. (56 2) 2338 0520 www.koandina.com Our Investor Relations: Paula Vicuña Businesses [email protected] 37 Tel (562) 2338 0520

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

Brazil Rua Andre Rocha 2299, Taquara, Jacarepaguá, Rio de Janeiro. Tel. (55 21) 2429 1530 24 Chile Av. Miraflores 9153, Renca. Santiago de Chile 65 Tel. (56 2) 2611 5838

Paraguay Acceso Sur Km 3,5 San Lorenzo, Asunción Tel. (595 21) 959 1000 Our Company – 6 – Focused on Attitude our customers Integrity Values Report • Annual 2017 Andina Coca‑Cola Austerity Team Oriented work on results

Mission Vision Add value growing sustainably, Lead the beverage market, refreshing our consumers and sharing being recognized for our management moments of optimism with our clients. excellence, people and welcoming culture. – 7 – Letter from the During 2017 we showed Chairman of the Board positive financial results in all four of the company’s

operations, despite Report • Annual 2017 Andina Coca‑Cola the complex

n behalf of the Board of Directors I effect of the appreciation of the Brazilian macroeconomic O preside, I am pleased to present the real regarding the Chilean peso in the scenario faced Annual Report, Sustainability Report and consolidation of figures to the reporting Financial Statements for the fiscal year 2017. currency and by price increases, which by the countries was partially offset by the 6.5% decrease During 2017 we showed positive financial in sales volume. The economy in Brazil is in which results in all four of the company’s operations, still very weak, especially in the state of Rio despite the complex macroeconomic scenario de Janeiro, which affects the demand for we operate. faced by the countries in which we operate. our products. The EBITDA generated by These results are the consequence of a the operation reached Ch $111,690 million, constant review of our pricing and packaging an increase of 15.2% over the previous year. strategy, which has allowed us to achieve EBITDA margin reached 18.5%, its highest benefits in each of our markets, along with level in 7 years, expanding 207 basis points. a continuous search for improvement in the efficiency of our processes. Net sales of our operation in Chile were Ch $551,873 million, an increase of 2.1%, Our operation in Argentina closed the year despite the 0.5% decrease in sales volume. Volume with net sales of Ch $553,788 million, a EBITDA of the Chilean operation reached 7.1% growth over the previous year. Sales Ch$115,579 million, a 2.7% over the previous 28% 33% 30% 9% volume decreased by 3.4%, which is mainly year, and EBITDA margin reached 20.9%, Argentina Brazil Chile Paraguay explained by macroeconomic factors. For an expansion of 13 basis points. its part, the EBITDA generated by the Sales company in Argentina reached Ch $79,471 Our operation in Paraguay increased million, growing 11.5% over the previous volume by 4.8%, explained in part by 30% 32% 30% 8% year. EBITDA margin showed an expansion the increase in market share of 120 basis Argentina Brazil Chile Paraguay of 56 basis points, reaching 14.4%. points, in addition to the reactivation of the cross-border trade. Net sales grew 7.0% EBITDA Our operation in Brazil closed the year and reached Ch$141,277 million. EBITDA with net sales of Ch $603.898 million, generated was Ch$36,370, a 2.9% growth 23% 32% 34% 11% a 2.3% growth, explained by the positive and EBITDA margin was 25.7%. Argentina Brazil Chile Paraguay – 8 – We have focused on continuing to develop our portfolio, Thus, although during the present year sugar-reduced products, where we are consolidated sales volume reached 756.3 benchmarks and leaders. A clear example

accompanying our Report • Annual 2017 Andina Coca‑Cola million unit cases, which represented a of this were the reformulations of Fanta 2.9% decrease when compared with the and Sprite that we conducted in Chile at previous year, the company’s consolidated the end of August 2017, which involved not consumers’ sales reached Ch$1,848,879 million, only a cost optimization, but also that both representing a 4.0% growth over 2016. These products are incorporated into the already needs. were driven by the growth of net sales in all large portfolio of low-calorie products we've our operations and the positive impact of been developing. In addition, in the last the 4.9% appreciation of the Brazilian real two years in Chile we have reformulated 32 against the Chilean peso and were partially products and currently 65% of the portfolio offset by the negative impact of the 14.5% is made up of low-calorie and zero-calorie depreciation of the Argentine peso on the products. On the other hand, in all our Chilean peso. The company's consolidated franchises we carried out the launching of EBITDA reached Ch$337,890 million, an the Full Red Coca‑Cola campaign, refreshing clear example that initiatives such as the Together with the portfolio development, we increase of 8.6% over the previous year, the image of the Coca‑Cola trademark launching of the new 220 cc cans in Chile have continued to search for efficiencies in with which EBITDA margin was 18.3%, family of products, and starting to serve and Brazil, as well as the 250 cc cans in all our processes, focusing on production an expansion of 78 basis points. Finally, the market with Sugar-free Coca‑Cola. This Argentina, since the end of 2016, have had and logistics. Our new plant in Duque de income attributable to the controllers of is a unique product, which maintains the the impact we expected. Caxias, which began operating in early 2018 the company was Ch$117,836 million, a original Coca‑Cola flavor, which allows us in Brazil, and which implied an investment growth of 30.2%. Dividends distributed by to accompany the choice of people who Lastly, we continue on the path to expand of approximately USD110 million, is a the company during 2017 reached Ch$75, want to continue enjoying the flavor of our portfolio of non-carbonated beverage clear example of this. The new plant will 536 million, increasing 11.8% over the the original Coca‑Cola, but without sugar. products, reaffirming our commitment to add approximately 30% to the installed previous year. this line of business that has great growth capacity that we have today in that country, In addition, we expanded the immediate potential. During 2017 we started distributing allowing us to more than double the installed In order to capture the many opportunities consumption portfolio, which enhances AdeS products in our four franchises and in capacity that we have for returnable formats, and challenges offered by each of the the transactions of our products, capturing January 2018 we executed the Guallarauco and, we can begin to serve the mineral markets where we operate, we have focused profitable volume and increasing the supply purchase and sale agreement. AdeS is water market with water bottled in Rio de on continuing to develop our portfolio, of flavors and categories to consumers in new a soy-based beverage, which opens new Janeiro. It will also help us to be closer to accompanying our consumers’ needs. and diverse occasions to enjoy our products, development opportunities for the portfolio our customers in the northeastern part of such as sports, entertainment, offices, etc., of vegetable protein-derived beverage Rio de Janeiro, thus improving our service We have continued to work on the leading and refreshing consumers in new segment. For its part, Guallarauco is a level. It is worth mentioning that this project, development of the soft drink category, lifestyles. Thus, although the company’s leading company in the premium juice which involved the commitment and work focusing on low-calorie, sugar-free and consolidated volume dropped by 2.9% segment in Chile and will also allow us to of many of our collaborators in Brazil, was compared to the year 2016, consolidated incorporate new categories such as frozen carried out in compliance with the highest 1. Unit Case or “UC”, equivalent to 5.678 liters transactions decreased 2.1%, which is a fruits, ice creams and ready-to-eat desserts. standards of construction and in its entirety A R G – 9 –

211.4 553,788 79,471 under the LEED concept, certification of Volume Sales EBITDA In addition, we have led various post- (MUC) (M Ch$) (M Ch$) sustainable buildings, developed by the consumer actions, where working with U.S. Green Building Council. In addition, cooperatives and base recyclers demonstrates the construction of this plant was tied to an our company's strong commitment to the extensive and comprehensive environmental community and the environment. We carry B R A management plan and work with the out programs of this kind in Brazil, Argentina community, thus completing a successful and Chile, which not only seek the recycling Report • Annual 2017 Andina Coca‑Cola productive, efficient and sustainable project. of our postconsumer packaging, where we recover more than 4 tons of plastic per Among other efficiency projects and year, but also to do so in an inclusive way. 248.9 603,898 111,690 productivity of the processes, we are initiating innovating projects for South America, like Energy management is another of our Volume Sales EBITDA the installation of the first automatic truck (MUC) (M Ch$) (M Ch$) constant concerns. In 2017 we continued loading and unloading docks in Chile, with investing in more efficient cold equipment European technology that will provide us in the 4 countries in which we operate, productivity and a speedy response to the which allows for a 30% savings in energy supply needs of distribution centers and C HI for our customers. In addition, we installed customers. We hope to consolidate this 2,000 LED luminaires in the Renca plant project during 2018. and the main distribution centers in Chile that will reduce emissions by 1,224 tons In line with the commitment to the of CO2/year. sustainable development of our business, 231.0 551,873 115,579 we have led numerous sustainability Innovative water management programs initiatives in all the countries in which we were developed in Paraguay. One of them is Volume Sales EBITDA operate. One of the axes of the sustainability (MUC) (M Ch$) (M Ch$) associated with good agricultural practices strategy is related to the reduction of waste and will involve for the next two years generation, which is becoming more and the training of 300 farmers, to ensure a more relevant in the communities where better infiltration of water to the reserve P A R we operate. In this way, we have continued of the Mbaracayú Forest and its aquifer, working on reducing the weight of our enabling the development of communities packaging, such as the launching in Chile whose economy depends on the agro and of the ecoflex bottle for Vital in December livestock. Another project we lead gave 2017, which will allow us to reduce the access to drinkable water to 40,000 people amount of resin used by our mineral water from 45 communities. 65.0 141,277 36,370 bottles by 30%, which is equivalent to a reduction in the market of more than 217 Volume Sales EBITDA In 2017 we continued to work on (MUC) (M Ch$) (M Ch$) tons of plastic per year. strengthening our corporate governance, incorporating tools that allow us to develop an ethical culture and a focus on sustainability. Examples of this are many, highlighting – 10 – Thanks to the commitment to the sustainable generation of

the implementation of a risk management tools for the correct and timely dissemination economic, social Report • Annual 2017 Andina Coca‑Cola model and the formation of the Culture, of the company's financial information to Ethics and Sustainability Committee. the market and community of shareholders, and environmental investors and analysts. Thanks to the commitment to the value of all those who sustainable generation of economic, social In these pages you can find more details to and environmental value of all those who understand how our company is facing the are part of Coca‑Cola Andina, important challenges we have, with the strength of the are part of Coca‑Cola and recognized world-wide indexes have Coca‑Cola brand, the focus on innovation incorporated the company's actions in and a group of collaborators committed to Andina, important and its sustainability indexes. An example of sustainable growth. these are the Dow Jones MILA, DJSI Chile, the FTSE 4Good Emerging Index and the I appreciate the trust of our shareholders, that recognized world- Vigeo Eiris Emerging 70 Ranking. This of more than 16,000 Company collaborators type of indexes is used by a wide range of and of all the people involved in this great investors to create and evaluate responsible family that we call Coca‑Cola Andina. wide indexes investment funds and being part of them reinforces that we are going in the right have incorporated the direction. In addition, we have received recognitions company’s actions for brand reputation, such as MERCO in Chile and important distinctions to the in its sustainability work performed by the investor relations team, such as ALAS20 for the best investor relations team in Chile, for the second indexes. consecutive year, among others.

In line with our constant effort to improve communication with the financial market and at the same time reduce waste generation, Juan Claro González the communication of this Annual Report Chairman of the Board of Directors and the 2017 Sustainability Report will be 100% digital, and we will incorporate new – 11 – Company Description

mbotelladora Andina S.A. (hereinafter “Coca‑Cola Andina”, E “Andina” or the “Company”) is one of the three largest Coca‑Cola bottlers in Latin America, servicing franchised • Annual Report • Annual 2017 Andina Coca‑Cola territories with almost 52.3 million people, delivering 756.3 million unit cases or 4,294 million liters of soft drinks, juices, and bottled waters during 2017. Coca‑Cola Andina has the Consolidated Financial Highlights franchise to produce and commercialize Coca‑Cola products (Figures in million Chilean pesos) in certain territories in Argentina (through the company Embotelladora del Atlántico, S.A. hereinafter “Edasa” or “Coca‑Cola Andina Argentina”), Brazil (through the company 2017 2016 2015 2014 2013* Rio de Janeiro Refrescos Ltda., hereinafter “Coca‑Cola Andina Net Sales 1,848,879 1,777,459 1,877,394 1,797,200 1,521,681 Brasil”), Chile (through the company Embotelladora Andina S.A., hereinafter “Coca‑Cola Andina Chile”), and in all of Operating Income 238,726 213,670 215,596 186,773 171,284 Paraguay (through the company Paraguay Refrescos S.A. hereinafter “Coca‑Cola Paresa”). The Company is controlled Net Income 117,836 90,526 88,098 75,807 90,267 in equal parts by the Chadwick Claro, Garcés Silva, Hurtado Berger, Said Handal and Said Somavía families, in accordance EBITDA 337,890 311,004 316,229 289,740 254,621 with a shareholders’ agreement. The Company’s proposal to generate value is being leader in the non-alcoholic beverage Total Assets 2,114,859 2,199,110 2,209,361 2,269,173 2,082,961 market, developing a relationship of excellence with consumers of its products, as well as with its employees, customers, Financial Debt 712,912 750,761 791,470 762,935 686,409 suppliers, the community in which operates and with its strategic partner Coca‑Cola. Shareholders' Equity 813,233 842,170 851,534 918,998 881,433

For more information on the Company visit www.koandina.com 2017 2016 2015 2014 2013 EOP price Andina A (Ch$) 2,850 2,289 1,955 1,472 1,850

Note: EOP price Andina B (Ch$) 3,071 2,491 2,130 1,717 2,413 Throughout this Annual Report we will refer to certain companies in Chile: EOP price AKO A (US$) 26.51 20.53 16.28 14.30 28.24 • Vital Aguas S.A., hereinafter also "Vital Aguas"; • Vital Jugos S.A., hereinafter also "Vital Jugos"; EOP price AKO B (US$) 29.28 22.47 17.41 17.00 21.04 • Envases Central S.A., hereinafter also "Envases Central"; • Coca‑Cola Embonor S.A., hereinafter also "Coca‑Cola Embonor" or "Embonor"; • Coca‑Cola de Chile S.A., hereinafter also "Coca‑Cola de Chile" or "Coca‑Cola Chile" * Includes figures of Companhia de Bebidas Ipiranga only for the 4th quarter of 2013 – 12 – History

1940's In 1946 Embotelladora Andina S.A. is established with the license to produce and distribute Coca-Cola products in Chile. 1995 Transition from the 1994 individual bottle Placement of Envases Central Report • Annual 2017 Andina Coca‑Cola towards the 24-bottle 1974 1985 7,076,700 American begins operations. case (today known as The Company acquires Inversiones Depositary Receipts Greater presence in 1997 “unit case”). an additional 46% in Freire acquires (ADRs) on the NYSE, the Argentine market Embotelladora control over the collecting US$127 with the acquisition of Stock split creating Concepción. 1980 1981 Company. 1991 million. Entrance to the Embotelladora del series A & B shares. Atlántico S.A. An additional 5% Launch of The plastishield Envases Brazilian market (“EDASA”), controller stake in EDASA is the PET format is introduced Multipack in the begins with the of the Coca-Cola acquired. US$350 non-retur- in Chile, the most packaging acquisition of Rio de bottling facilities for million issue in the 1975 nable 2-lt modern 1986 business begins Janeiro Refrescos, non-returnable operations. bottling Company the franchises of U.S. market in 1999 The Company bottle. Sale of the format in the world. located in the city of Rosario and Mendoza. tranches of 10, 30, Inaugura- acquires a 34% bottling facility Launch of diet soft Rio de Janeiro, with a and 100 years. tion of the ownership interest in in Viña del Mar. drinks, TAB and bottling facility in Montecristo Embotelladora Talca. Sprite Light. Jacarepaguá. production facility in Córdoba, Argentina.

1982 1984 1992 Vital is established and Andina sells its Launch of Diet dedicated to the business ownership Coca-Cola. 1960's 1978 1979 of juices and mineral 1996 interest in Termas Mineral Operations begin at waters in Chile. Coca-Cola A 49% ownership interest of In 1960 The San Embotelladora de Chanqueahue the Chanqueahue Andina acquires a minority Vital is sold to The Joaquín Plant is Talca and and the brand Vital production ownership in INTI, a Coca-Cola Company along inaugurated in Embotelladora Agua Mineral facility in Rengo Coca-Cola product bottling with the brands: Kapo, Santiago. The Company Concepción to Vital are and Embotelladora Company in Córdoba, Andina and Vital. Expansion acquires a 45% Sociedad de ownership interest in purchased. The Concepción in Argentina. into Argentina continues, Company Temuco. Inversiones acquiring an additional 36% 1998 Embotelladora Williamson. Concepción. increases to ownership interest in Coca-Cola Andina 80% its EDASA, an additional 79% in repurchases the 49% ownership INTI (today merged with stake that The interest in EDASA), 100% of Complejo Coca-Cola Company Embotelladora Industrial PET in Buenos held in Vital but The Talca. Aires (dedicated to the Coca-Cola Company packaging business), and a remains with 15% of Cican, a Coca-Cola ownership of all brands product canning facility. The Coca-Cola Company enters into Andina’s ownership with an 11% stake. – 13 –

2004 Franchise swap between Rio de Janeiro Refrescos 2006 2007 2009 and a subsidiary of The 2012 Coca-Cola Company in The Company obtains Andina inaugurates Coca-Cola Andina 2000 the State of Minas Gerais the 2005 National Maipú and Puente commemorates its 15th Materialization of the for the franchise of Nova Award for Quality and Alto Distribution Anniversary of listing on merger with Embotellado- Acquisition of the Iguaçu located in the Competitiveness, Centers in Santiago. The New York Stock ras Coca-Cola Polar S.A., Exchange. In Argentina we incorporating Paraguay Brazilian Coca-Cola State of Rio de Janeiro. distinction given by the The Coca-Cola Report • Annual 2017 Andina Coca‑Cola bottler for Niteroi, Presidency of the Company along with received the National and new territories in Chile Award for Quality, the and Argentina. Acquisition 2017 Vitoria and Republic of Chile. the Coca-Cola bottlers During April we began Governador Andina is the ﬁrst in Brazil create a Joint highest recognition granted of 40% of Sorocaba distributing AdeS Valadares. Company in the mass Venture, Mais to private companies and Refrescos in Brazil. Change products, reinforcing the consumption sector to Indústria de public organizations. of corporate image to growth trend of new obtain this award. Alimentos, in order to Coca-Cola Andina. 2002 2014 categories. enhance the EDASA concentrates all non-carbonated Coca-Cola Andina issues UF productive operations at the business for the entire 3,000,000 in twenty-one Montecristo production System in that year-term bonds in the facility in Córdoba and shuts country. Chilean market. down the Mendoza and Rosario plants.

2008 2010 2011

Andina incorporates The Company Coca-Cola Andina the Benedictino brand signiﬁcantly commemorates 65 2005 to its water portfolio in increases years and the new 2016 2003 production and bottling facility in Vital is divided into two Chile. Acquisition in distribution capacity Chile begins The Coca-Cola del Valle EDASA takes control over companies, creating Vital Brazil through the Mais 2001 in Chile, Argentina operations. The New Ventures S.A. joint CIPET. Andina is awarded Aguas S.A. Hence, Vital joint venture of the Joint Venture and Brazil. juice business is 2013 venture is created on the “Carlos Vial Espantoso” exclusively develops the Sucos del Valle brand, between Multipack restructured and January 28, 2016 along award, which distinguishes juice and other leader in the juice The acquisition of 100% of and Crowpla creating Vital becomes Vital with Coca-Cola de Chile the most relevant Chilean non-carbonated beverage segment in this market. the shares of Companhia de the new Company Jugos, a joint S.A. and Embonor S.A. Company in terms of labor business while Vital Aguas Bebidas Ipiranga (“Ipiranga”) Envases CMF that venture with the (“Embonor”) as vehicle to relations and with more S.A., along with the other in Brazil becomes material. participates in the other Coca-Cola develop a new model and dedication to human Coca-Cola bottlers in Chile Additionally, Andina issues packaging business. bottlers in Chile. commercial policies for capital. Coca-Cola Andina develops the water UF 5,000,000 in bonds in the production and issues UF 7,000,000 business. tranches of 7 and 21 years commercialization of in bonds (7 and 25 in the Chilean market and certain non-carbonated years). Tender Offer US$575 million in 10-year and still beverages. for the partial term bonds in the U.S. repurchase of bonds market. issued in the US market. – 14 – Company Structure

35.00% 59.27% 66.5% 99.9998% 99.999981% 0.00011% 0.70% Coca-Cola Del Envases Vital Andina Inversiones Inversiones 99.30% Aconcagua Valle New Central S.A. Aguas S.A. Societarias S.A. Los Andes Ltda. Investing Ltd. 0.000019% Ventures S.A. • Annual Report • Annual 2017 Andina Coca‑Cola

0.15% 0.0041% 0.10% 0.00005% 0.10% 50.0% 15.0% 50.0% 99.90% 99.85% 99.9959% 99.90% 99.99995% 99.90% 0.10% Red de Transportes Servicios Embotelladora Andina Bottling Vital Envases CMF S.A. Andina Bottling Transportes Andina Refrescos Multivending Andina Chile Investments Jugos S.A. Investments Dos Comerciales Ltda. Ltda. Ltda. S.A. S.A. S.A.

99.99% 0.01% Transportes 99.90% Polar S.A. Abisa Corp 0.1%

97.7533% 0.07697% 99.99% Paraguay Refrescos Rio de Janeiro 81.67% 0.92% 0.003% S.A. Referescos Ltda. Embotelladora del Atlántico S.A. 17.40% 12.96% Sociedad Alimentos de SOJA S.A.

40.00% 40.00% 11.32% 8.82% 7.52% 8.50% Andina Empaques Sorocaba SRSA Kaik Participações Leão Alimentos e Trop Frutas do UBI 3 Participações 99.98% Argentina S.A. 0.003% Refrescos Ltda Participações Ltda. Ltda. Bebidas Ltda. Brasil Ltda. Ltda. Argentina Brazil Chile Paraguay British Virgin Islands

Parent Company Consolidating Subsidiaries Equity Investees Investments without signicant inuence*

*These companies were incorporated into the Company for the AdeS business development and have not been rated as of significant influence, hence they are classified under Other Non-current Financial Assets within the Financial Statements. – 15 – Deeds of Incorporation

mbotelladora Andina S.A. is an open Donoso Gomien. An abstract thereof is E stock corporation, incorporated by registered on page 49151 N°34479 of the means of a public deed dated February 7, Santiago Registry of Commerce of 2012, • Annual Report • Annual 2017 Andina Coca‑Cola 1946, before the Notary Public of Santiago, and was published in the Official Daily Mr. Luciano Hiriart Corvalán. An abstract Newspaper dated August 1, 2012. of this deed is registered on page 768, N° 581 of the Santiago Registry of Commerce Subsequently, by public deed dated 14 of 1946, and was published in the Official October 2013, granted by the notary public Daily Newspaper issue N° 20,413 dated of Santiago, Mr. Eduardo Avello Concha, March 25, 1946. evidence was noted of a full-fledged equity decrease according to the provisions of article The Chilean Treasury Department, upon 27 of Chilean Company Law N° 18,046 . Decree N°1,364 of March 13, 1946, which is An abstract of this deed is scored aside registered on page 770 N°582 of the Santiago from the company's social inscription on Registry of Commerce of 1946, approved the the Santiago Registry of Commerce, dated Company’s bylaws, authorized its creation, October 16 of the same year. In accordance and declared it duly incorporated. with the above, the share capital decreased by Ch$21,724,544, and was divided into The latest amendment to the Company’s 473,289,301 Series A shares and 473,281,303 bylaws was approved at the Special General Series B shares. Shareholders’ Meeting held June 25, 2012. The minutes thereof were brought into a public deed dated July 12, 2012 before the Notary Public of San Miguel, Ms. Patricia The Company also has a Culture, Ethics Likewise, the Company does not have a policy – 16 – Corporate and Sustainability Committee, which was that is different from what is required by established by the Board of Directors of the Chilean Law with respect to the nomination Company at its session held January 28, of a shareholder as a candidate to be a Governance 2014. The following are included among member of the Board of Directors of the its duties and responsibilities: (i) receive, Company. Consequently, any interested acknowledge, and investigate irregularity shareholder may attend a Meeting and reports referred to in law N° 20,393 on crime propose a specific candidate as director The Company has an Executive prevention, and recommend actions to be when an election is to take place. followed in each of the cases; (ii) establish Committee that supervises and develop procedures to promote the In accordance to Chilean Law, Coca‑Cola ethical conduct of Company employees; (iii) Andina is not required to have a Directors’ the overall operation of the supervise compliance with the provisions Nominating Committee, as in other of the code of ethics, and resolve queries countries. Report • Annual 2017 Andina Coca‑Cola corporate businesses and controls and disputes that its application might generate; (iv) establish mechanisms for Further information regarding Corporate the operations on a permanent dissemination of the code of ethics, and Governance matters and the difference with general matters of ethical character. United States of America (hereinafter and basis and through periodic sessions, indistinctively “U.S.”) standards are included The current members of the Culture, in our 20-F Form filed with the Securities in addition to proposing guidelines Ethics and Sustainability Committee are & Exhange Commission (“SEC”) every year, Mrs. Susana Tonda Mitri, Mr. José Antonio and on our website www.koandina.com, as concerning the administration of the Garcés Silva and Mr. Gonzalo Said Handal of April 30, 2018. in addition to the Chairman of the Board of corporate businesses. Directors, who integrates this committee by own right.

Even though the Company has not Board of Directors1, whose members Company’s general business and the control established a formal process that allows A are proposed and elected every three of operations on a permanent basis and its shareholders to communicate with the years by the General Annual Shareholders’ through periodic sessions, and to propose directors, shareholders desiring to do so Meeting2, controls Andina’s management. guidelines concerning the administration may manifest their opinions, considerations Board members are elected by separate voting of the Company’s business. The members or recommendations before or during the of the Series A and Series B shareholders of the Executive Committee of the Board General Shareholders’ Meeting which will as follows: holders of Series A shares elect of Directors of Embotelladora Andina be heard and attended by the Chairman 12 Directors and holders of Series B shares S.A. are the following directors: Eduardo of the Board, or by the Chief Executive elect 2 Directors. The Directors may or may Chadwick Claro, Arturo Majlis Albala, José Officer of the Company, and any such not be shareholders, and will hold their Antonio Garcés Silva (junior), Gonzalo Said recommendations will be submitted for the offices for three years with the possibility Handal and Salvador Said Somavía, who consideration of shareholders in attendance to be re-elected for an indefinite number were elected during regular Board session during the Meeting. of periods. held on April 26, 2017. The Chairman of the Board, Mr. Juan Claro Gonzalez and Coca‑Cola Andina does not have a defined The Company has an Executive Committee the Chief Executive Officer, Mr. Miguel policy with respect to the attendance of the 1. For the year ended December 31, 2017, the Board which was established by unanimous Ángel Peirano, are also members of this directors at the Meeting, but it is customary of Directors incurred in Ch$415 million related to agreement of the Board of Directors of committee, who participate by own right. for them to attend voluntarily. consultancies and audit expenses, among others. 2. The last election of Directors took place at the General the Company at its session held on April This Committee meets permanently Shareholders’ Meeting dated April 26, 2017. 22, 1986, and its duty is to supervise the throughout the year. – 17 – Directors’ Committee

ursuant to Article 50 bis of Chilean Law N°18,046 and issue a report on contingencies, IT and and status of as the financial expert in accordance with P Company Law N°18,046 and in those operations. Internal and External Audit observations. the definitions of the listing standards of accordance to the dispositions of Circular the NYSE and the Sarbanes-Oxley Act. N°1956 and Circular N°560 of the Chilean • Examine the salary systems and • Analyze the risk map identified in the area Superintendence of Securities and Insurance, compensation plans of the Company’s of Information Technology, as well as the The resolutions, agreements and the current Directors’ Committee was managers, principal officers and progress status on the implementation of organization of the Sarbanes-Oxley Audit elected during Board Session dated April employees. the respective mitigation plans. Committee are governed by the rules relating 26, 2017. The Committee is composed to Board Meetings and to the Company’s • Review anonymous reports. • Review and approve for the Operations, in Report • Annual 2017 Andina Coca‑Cola of the Directors Pilar Lamana Gaete and certain cases, the hiring of audit companies Directors’ Committee. Since its creation, Gonzalo Parot Palma (both as independent • Review and approve the 20F and verify to perform non-audit services and which the sessions of the Sarbanes-Oxley Audit directors), and Salvador Said Somavía. The Management compliance with Rule 404 are not forbidden by current standards. Committee have been held with the Directors’ Chairman of the Directors’ Committee is of the Sarbanes & Oxley Act. Committee, since some of the functions are Gonzalo Parot Palma. • Review the Impairment Test. very similar and the members of both of • Review Internal Audit Reports. these Committees are the same. • Review the Corporate Tax Policy. Between April 30, 2013 and April 26, 2017, • Prepare the budget proposal for the the Directors' Committee was composed Committee’s operation. • Report on effects of new IFRS standards. The Sarbanes-Oxley Audit Committee Messrs. Gonzalo Parot Palma (as Chairman Charter that is available on our website: and independent director), Arturo Majlis • Periodically interview the Company’s • Prepare the Annual Management Report www.koandina.com, defines the duties Albala and Salvador Said Somavía. External Auditors. and responsibilities of this Committee. Finally, we inform that during 2017, The Sarbanes-Oxley Audit Committee is Pursuant to Article 50 bis of Chilean • Review the budget for the Coca‑Cola the Directors' Committee incurred in responsible for analyzing the Company’s Corporation Law N°18,046, we inform System related company operations. Ch$82,720,832. These expenses relate to financial statements; supporting the financial about the tasks carried out by Embotelladora consultancies on free competition and legal supervision and rendering of accounts; • Analyze and approve the Internal Audit matters, among others. Andina S.A.'s Directors' Committee, certification processes as well as the ensuring management’s development reporting that during 2017 the Committee operating bylaws proposal of reliable internal controls; ensuring developed the following activities, among Sarbanes-Oxley compliance by the audit department and 1 others: • Review the Risk Matrix and Mitigation Audit Committee external auditors of their respective roles; Plans of the Company. In accordance with NYSE and SEC and reviewing auditing practices. • Examine the reports of External requirements regarding compliance with the Auditors, the balance sheets and other • Review efficiency opportunities in Sarbanes-Oxley Act, the Board of Directors Financial Statements, presented by the the company’s structure, analyzing established an Audit Committee on July 26, administrators of the Company, and take corporate roles and functions regarding 2005. The current Audit Committee was a position on such reports before they the Company’s Operations, as well as elected during Board Session held April were presented to shareholders. the structure of investment companies. 26, 2017. The Committee is composed of the directors Mrs. Pilar Lamana Gaete, Mr. • Propose external auditors and private • Review and approve press releases that Gonzalo Parot Palma, and Mr. Salvador rating agencies to the Board of Directors, refer to the Company’s statements of Said Somavía determining that Mrs. Pilar which were suggested to the respective income. Lama Gaete and Mr. Gonzalo Parot Palma Shareholders’ Meeting. • Review the Company’s four Operations’ fulfill the independence standards set forth in the Sarbanes-Oxley Act and SEC • Examine information regarding the Internal Control Standards, including Critical Risks in accounting processes, and NYSE regulations. Also, Mr. Parot has 1. For the year ended December 31, 2017, the Audit operations referred to by Title XVI of Committee did not incur any expenses. compliance of corporate policies, tax been appointed by the Board of Directors Board of – 18 –

Salvador Said Georges de Date appointed: April 26, 2017 Directors Somavía Bourguignon Business Juan Andrés Arndt _ Administrator Gonzalo Parot Fontaine Economist Chilean Tax Id N°: Note 1 Palma Talavera Chilean Tax Id N°: 6.379.626-3 The Directors Messrs. Eduardo Chadwick Mariano Rossi Civil Industrial Business 7.269.147-4 Claro, José Antonio Garcés Silva, Business Engineer Arturo Majlis Administrator Gonzalo Said Handal and Salvador Said Administrator Susana Albala Somavía hold an ownership interest in the Chilean Tax Id N°: Chilean Tax Id N°: Karim Yahi Company, a detail of which can be found Foreign citizen Tonda Mitri Attorney at Law 6.703.799-5 Business 6.068.568-1 Auditor on page 58 of this Annual Report. The Chilean Tax Id N°: Foreign citizen Director Mr. Arturo Majlis Albala owns Administrator 6.998.727-3 company stock representing a 0.0005% Chilean Tax Id N°: of Series A shares and 0.0016% Series 5.500.244-4 B shares. None of the other Company Directors hold Andina´s stock.

Note 2 People who are not currently Company Directors but who were directors during

the last 2 years are identified as follows: Report • Annual 2017 Andina Coca‑Cola

Ricardo Vontobel Business Administrator Foreign Citizen Elected as director on June 25, 2012. Cessation of office date: January 29, 2016

Emilio Rodriguez Larraín Attorney at Law Foreign citizen Elected as director on June 25, 2012. Cessation of office date: April 21, 2016

Franz Alscher Economist Foreign citizen Elected as director on June 25, 2012 Cessation of office date: September 27, 2016

José De Gregorio Rebeco Civil Industrial Engineer Elected as director on June 25, 2012. Cessation of office date: April 26, 2017

Francisco Javier Crespo Industrial Engneer Foreign citizen Elected as director on June 25, 2012 Cessation of office date: April 26, 2017

Note 3 The Board of Directors of Coca‑Cola Andina is composed of 14 directors, 12 of whom are men and 2 are women. 10 of them are Chilean citizens and 4 are foreign citizens. All members of the Board are older than 40 years of age and two are between 41 and 50 years old, eight between 51 and 60 years old, four between 61 and 70 years old, and there are no Directors over the age of 70. Five of the directors who currently comprise the Company’s Board have served in this position for less than three Gonzalo Said Handal years, three have served between three Business Administrator José Antonio and six years, one for more than six and Chilean Tax Id N°: Juan Claro González Pilar Lamana Gaete Garcés Silva less than nine years, none between nine Eduardo and twelve years, and five for more than 6.555.478-K Chairman of the Board Business Business 12 years. Enrique Rapetti Entrepreneur Administrator Chadwick Claro Administrator Accountant Chilean Tax Id N°: Chilean Tax Id N°: Vice Chairman Chilean Tax Id N°: Foreign citizen of the Board Note 4 5.663.828-8 8.538.550-K 8.745.864-4 During 2017 on two occasions, the Board Civil Industrial of Directors was trained in matters of Engineer corporate governance and Corporate Chilean Tax Id N°: Social Responsibility. 7.011.444-5 – 19 – Our Collaborators*

f total Company employees, 14,378 are Omen and 1,685 are women. Of them, 3,274 are Chilean citizens and 12,789 are foreign citizens. Of the foreign citizens, 12,559 collaborators are of national origin of their respective operations. MANAGERS AND PROFESSIONALS AND OTHER TOTAL PRINCIPAL OFFICERS TECHNICIANS EMPLOYEES TEMPORARIES 2017 Of total Company collaborators, 4,675 are • Annual Report • Annual 2017 Andina Coca‑Cola under 30 years of age, 6,576 are between Argentina 30 and 40, 3,273 between 41 and 50, 1,350 between 51 and 60, 178 between 61 and Embotelladora del Atlántico S.A. 96 670 1,867 430 3,063 70, and 11 are older than 70. Andina Empaques Argentina S.A. 5 45 118 15 183 Of total Company collaborators, 6,992 have Brazil performed their role in the Company for less than three years, 3,554 between three Rio de Janeiro Refrescos Ltda. 58 1,023 6,699 - 7,780 and six years, 1,510 for more than six and less than nine years, 1,270 between nine Chile and twelve years, and 2,737 for more than 12 years. Embotelladora Andina S.A. 74 406 1,814 521 2,815

Vital Aguas S.A. 1 68 32 45 146

Vital Jugos S.A. 91 245 10 346

Envases Central S.A. 3 31 75 3 112

Paraguay

Paraguay Refrescos S.A. 37 306 1,126 111 1,580

Holding 16 16 6 - 38

TOTAL 290 2,656 11,982 1,135 16,063

* The number of employees is calculated as equivalent to full time hours, which means that extraordinary hours are considered as additional employees. – 20 – Administrative Management Structure Structure*

Culture, Ethics & BOARD OF Sustainability Committee DIRECTORS

Executive Committee Audit Committee Miguel Ángel Peirano Jaime Cohen Chief Executive Officer Chief Legal Officer Chilean Tax Id.: 23.836.584-8, Chilean Tax Id.: 10.550.141-2, Directors' Committee Report • Annual 2017 Andina Coca‑Cola Electrical Engineer Attorney at Law In office since January 1, 2012 In office since September 1, 2008 Internal Audit

Chief Executive Andrés Wainer Carlos Gálvez Officer Chief Financial Officer Chief Information Technology Officer Miguel Ángel Peirano Chilean Tax Id.: 10.031.788-5, Chilean Tax Id.: 9.096.278-7, Economist Informatic Engineer In office since January 1, 2012 In office since February 1, 2016 Chief Financial Officer — Andrés Wainer General Manager Argentina — Fabián Castelli Tomás Vedoya Gonzalo Muñoz Chief Strategic Chief Strategic Planning Officer Chief Human Resources Officer Planning Officer — Tomás Vedoya Chilean Tax Id.: 23.058.990-9, Chilean Tax Id.: 7.691.376-5, Commercial Engineer Certified Public Accountant General Manager Brazil In office since February 23, 2015 In office since January 1, 2015 — Renato Barbosa Chief Legal Officer — Jaime Cohen

General Manager * Administratively Embotelladora Andina S.A. is structured as a holding company made up of a Corporate Office and Chile an Operation in each of the countries it is present, except in Chile where Coca‑Cola Andina operates directly. Chief Information — José Luis Solórzano Technology Ofﬁcer — Carlos Gálvez Note 1. None of the principal officers hold an ownership interest in Embotelladora Andina S.A. Note 2. Diversity in the General Manager’s office and other Managing areas that report to the General Manager: The General Manager and Principal Managers of Coca‑Cola Andina are 10, all men. Of them, six are Chilean citizens and four are foreign citizens. Within the principal officers, there are no officers younger than 30 years old, one is between 30 and 40, three are between 41 and 50, five between 51 and 60 and Chief Human General Manager one is between 61 and 70 years old. Regarding seniority within the Company, of the principal officers of Resources Ofﬁcer Paraguay Coca‑Cola Andina, three of them have held their position for less than three years, four between three — Gonzalo Muñoz — Francisco Sanfurgo and six years, one for more than six and less than nine years, one between nine and 12 years and one for more than 12 years. A R G

B R A

– 21 – Main C HI Operations

P A R A R G

Francisco Sanfurgo Leonardo Calvete General Manager Quality Manager Chilean Tax Id N° 7.053.083-K, María Teresa Llamosas Mechanical Engineer Renato Barbosa Max Ciarlini Human Resources B R A General Manager Human Resources In office since Manager January 1, 2005 Foreign citizen, Manager Report • Annual 2017 Andina Coca‑Cola Economist Carlos Stuardo In office since Fernando Fragata Industrial Manager January 1, 2012 Eduardo Yulita Legal Manager Finance, Administration C HI and Systems Julio Fiandro David Parkes Rui Barreto Logistics Manager Finance and Ribeirão Preto Manager Administration Melina Bogado Manager Marketing Manager Rodrigo Klee A R G Logistics and Operations Marcio Greco Manager P A R Strategic Planning Manager Wagner Carrer José Luis Solórzano María Cecilia Facetti Ribeirão Preto General Manager S&OP Manager Rodrigo Ormaechea Commercial Manager RUT 10.023.094-1, B R A Commercial Manager Commercial José María Sánchez Engineer National Industrial In office since Manager April 1, 2014 A R G Alejandro Vargas C HI 1 National Logistics Alejandro Zalaquett Manager Fabián Castelli Pablo Bardin Finance and General Manager Industrial Manager Administration DNI 17.744.981, Manager Rodolfo Peña Industrial Engineer Regions' Manager B R A Santiago López In office since April 1st, 2014 Distribution and Logistics Sebastián Tagle Manager Commercial Manager P A R Alejandro Palma2 Fernando Ramos Innovation Manager Diego Garavaglia Rodrigo Marticorena Finance and Administration Integration Manager Human Resources ManagerC HI Manager Sergio Venosa Technology Manager Ariel Molina Pablo Teobaldo Legal Manager Javier Urrutia Commercial Manager Legal Manager Daniel Caridi Daniel Palacios General Manager Andina QualityP A ManagerR Empaques Argentina S.A.

1. In office since October 2017, position was previously Lilia Hidalgo held by Alberto Moreno. Human Resources Manager 2. In office since November 2017, position was previously held by Fernando Jaña. – 22 – Company

OWNERSHIP TWELVE MAIN SHAREHOLDERS SERIES A SERIES B TOTAL SHARES Ownership INTEREST (%) Coca‑Cola de Chile S. A. 67,938,179 67,938,179 135,876,358 14.4 Inversiones Cabildo SpA* 52,987,375 49,650,863 102,638,238 10.8 Series A Series B Banco de Chile por cuenta de Terceros 41,690,087 49,480,580 91,170,667 9.6 ADRs Chilean Chilean Pension ADRs Pension Funds Inversiones Sh Seis Limitada* 52,989,375 37,864,863 90,854,238 9.6 Funds 6.4% 1.0% 7.3% 2.9% Inversiones Nueva Delta S.A.* 46,426,645 46,426,645 4.9 Coca–Cola Inversiones El Olivillo Limitada* 46,426,645 46,426,645 4.9 14.7% Coca–Cola Report • Annual 2017 Andina Coca‑Cola * Controlling 14.7% Group The Bank Of New York Mellon 4,937,346 34,864,668 39,802,014 4.2 * Controlling Group 43.8% Rentas Ima Ltda.* 38,978,263 38,978,263 4.1 55.7% Banco Itau por cuenta Others de Inversionistas 15,369,650 23,062,632 38,432,282 4.1 22.2% Others 31.3% Banco Santander - Jp Morgan 14,774,007 17,904,730 32,678,737 3.5 Inversiones Nueva Sofia Ltda.* 2,985,731 25,678,583 28,664,314 3.0 Inversiones Las Gaviotas Dos Ltda.* 13,513,594 13,513,594 27,027,188 2.9

* Company Related to the Controlling Group Total Note: The total number of shareholders of Embotelladora Andina S.A. at December 31, 2017 is 791 shareholders of the Series A and 1,140 shareholders of the Series B.

Chilean ADRs Pension 4.6% Funds 4.2% DIVIDENDS* SERIES A1 SERIES B1 TOTAL PAID2

Coca–Cola January Interim 19.00 20.90 18,884 14.7% May Final 19.00 20.90 18,884 August Additional 19.00 20.90 18,884 * Controlling Group October Interim 19.00 20.90 18,884 49.8% Total 2017 76.00 83.60 75,536 Total 2016 68.00 74.80 67,584 Total 2015 54.00 59.40 53,671

Others Total 2014 52.40 57.64 52,080 26.7% Total 2013 71.60 78.76 71,163

1. Ch$ per Share 2. Millon nominal Ch$

* All dividend distributions were reported as material events to the public and and the Chilean Superintendence of Securities and Insurance, Stock Exchanges and the SEC in the United States of America, and also disclosed on the * See Description of Controlling Group on page 58. Company’s website. – 23 –

he dividend distribution policy has increased by 10%. The preferences of Series T consisted of paying out a percentage A and Series B shares will last for the term not lower than 30% of the earnings for the that expires on December 31, 2130. Upon period. No material changes to this policy expiration of this term, Series A and B are expected in the future. Historically will be deleted and the shares which form the Company has carried out dividend them will be automatically transformed Report • Annual 2017 Andina Coca‑Cola payments through interim dividends into common stock without any preference, and one final dividend after its approval eliminating the split into series of shares. during the month of April by the General Shareholders’ Meeting following the close Shareholders’ Summary of the fiscal year. Since the year 2000 the and Comments Company has paid out additional dividends Pursuant to General Rule N° 30 of the every year in accordance with the General Chilean Superintendence of Securities and Shareholders’ Meeting approval. Insurance and article 74 of Law N° 18,046, it is informed that neither the Committee During 2017 Distributable Earnings were nor shareholders or groups of shareholders equal to Net Income. representing or holding 10% or more of the issued shares with voting rights have made Series A and Series B shares are mainly comments or suggestions concerning the differentiated by their political, voting and running of Company business. economic rights. However, the minutes of the General While Series A shares have the right to Shareholders’ Meeting of 2017 include all choose 12 of the 14 directors, Series B observations made by every shareholder shares have the right to receive all and any that expressed his/her opinion during dividends that the Company distributes said Meeting. per share being those interim, definitive, minimum required, additional or possible, – 24 – • Annual Report • Annual 2017 Andina Coca‑Cola Our Businesses A R G Argentina

San Juan Sales by Sales by Sales by Mendoza Format Soft Channel Flavor Soft Drinks Drinks San Luis Córdoba Santa Fé 41.8% 33.6% 61.4% Entre Ríos Multi Serving Traditional Coca-Cola La Pampa Non-Returnable Neuquén Río Negro Chubut Santa Cruz Tierra del Fuego & Western Province of Buenos Aires

Total Per Capita Annual Consumption Franchise Extension (8 oz. bottles) 46.2% 33.3% 1,892 thousand km Multi Serving Wholesales 331 Returnable Clients Soft drinks Juices & Others Waters thousand 26.1% 64 Others 282 17 32 Regular Franchise Population

Total Sales Volume (MUCs) 13.9 million 211.4 Operating Soft drinks Juices & Others Waters Income 174.4 10.9 26.1 95.2 MUSD Market Share (%)* 9.4% 29.9% 9,4% Single Serving Supermarkets Coca-Cola Light Soft drinks Juices & Others Waters EBITDA Non-Returnable & Coca-Cola Zero 62.3 35.2 16.3 122.4 MUSD 1.5% 1.1% 3.2% 3,1% Single Serving Post Mix On-premise Others * Source: AC Nielsen Returnable Light Consolidated EBITDA – 26 – A R G ARGENTINA BRAZIL 23% 32%

B R A PARAGUAY 11% CHILE 34% C HI

Business Description Agreements we have the right to produce other products through one line with an Coca‑Cola Andina Argentina produces and and commercialize soft drinks bearing the average utilization capacity of 41.7%. Finally, Report • Annual 2017 Andina Coca‑Cola commercializes the following products trademarks of The Coca‑Cola Company in at the Bahia Blanca plant the company has Suppliers of main raw materials licensedP A byR The Coca‑Cola Company: our franchise territory. Although this is not the capacity to produce juices through 1 Concentrate: Servicios y Productos para Bebidas Coca‑Cola, Coca‑Cola Light, Coca‑Cola an exclusive right, The Coca‑Cola Company line with an average utilization capacity Refrescantes S.R.L.1 | Sweetener: Complejo Azucarero Zero, Fanta Naranja, Fanta Naranja Zero, has never authorized any other entity to of 12.9%. Additionally it manages 277 soft Concepción, Glucovil argentina S.A. and Ingredion Fanta Limón, Fanta Pomelo, Sprite, Sprite produce or commercialize soft drinks or drink auto-vending machines. Argentina S.A. | Water: EDASA owns water wells and pay Zero, Quatro Liviana, Schweppes Citrus, other beverages bearing the trademarks of a fee to the Dirección Provincial de Aguas Sanitarias. | Schweppes Tónica, Schweppes Pomelo, The Coca‑Cola Company in our franchise Also, during June 2012, at the Córdoba Carbon Dioxide: Praxair Argentina S.R.L. and Air Liquide Schweppes Lima Limón, Schweppes Zero, territory. The Agreement states as franchise production facility we inaugurated a plant for Argentina S.A. | Packaging (Bottles): Andina Empaques Crush Naranja, Crush Lima Limón, Kin territory the provinces of Córdoba, Mendoza, the processing of raw sugar, with a nominal Argentina S.A.2, Cattorini Hermanos S.A.C.I.F.E .I. and carbonated and non-carbonated , Bonaqua San Juan, San Luis and Entre Ríos, as well as processing capacity of approximately 370 Dak Americas Argentina S.A. | Boxes: Andina Empaques carbonated and non-carbonated (mineral part of the provinces of Santa Fe and Buenos tons per day. The approval to use 100% Argentina S.A.2, Cabelma S.A. and PbbPolisur S.A. | water), Aquarius (8 flavors), Aquarius Delight Aires, Chubut, Santa Cruz, Neuquén, Río raw sugar was obtained in 2017, reaching Plastic Caps: Andina Empaques Argentina S.A.2, Alusud (2 flavors) and Aquarius Cero (3 flavors). Negro, La Pampa, Tierra del Fuego, Antartic a plant utilization of 71.0%. Argentina S.R.L. and PbbPolisur S.A. | Metal Caps: Additionally, it produces and commercializes and South Atlantic Islands. The Agreement Metalgráfica Cearence S.A. | Electric Energy: Compañía Cepita (5 flavors), Powerade (6 flavors), and with The Coca‑Cola Company has been The distribution of products is carried Administradora del Mercado Mayorista Powerade Zero and in certain provinces It extended until September 30, 2022. out through third Eléctrico S.A. (CAMMESA), Termoandes commercializes the following beer brands: party distributing S.A. and EPEC | Thermocontractable: Amstel, Budweiser, Heineken, Sol, Imperial Production and Distribution companies with a fleet The 12 main clients Río Chico S.A., Ipesa Ind. Plast S.A. and (5 varieties), Palermo, Schneider Bieckert, Coca‑Cola Andina Argentina operates 3 of 100 contractors S. A. Imp. y Exp. de la Patagonia, Plastinadino S.A. | Labels: Luis y Miguel Kunstmann (3 varieties). Addicionally, all production facilities for soft drinks, one with a total of 829 Jumbo Retail Argentina S.A., Inc Zanniello S.A. and Envases John S.A. the franchise area commercializes AdeS located in Córdoba with 10 lines and an trucks. Sociedad Anónima, Wal-Mart (9 flavors). average utilization capacity of 52.5%; another Argentina S.R.L., Mistura S.A., one located in Bahía Blanca (Province of Sitas S.A., Pont Andrés Roberto, License Agreements Buenos Aires) with 3 lines and an average Garzon S.R.L., Cooperativa Servicios y Productos para Bebidas These License Agreements are international utilization capacity of 57.9%; and the third Obrera Ltda C y V, Manzur Refrescantes S.R.L.1 individually standard agreements that The Coca‑Cola one located in Trelew (Province of Chubut) Fortunato Alberto, El Gringo concentrates at least 10% of the Company enters into with bottlers outside with 3 lines and an average utilization S.R.L. and López Hnos. S.R.L. purchases carried out. the United States of America for the sale of capacity of 37.3%. Additionally, the Córdoba concentrate and beverage bases for certain plant also has the capacity to produce juices soft drinks and non-soft drink beverages for it which it has 4 lines with an average None of the clients indivually concentrate more than 10% of bearing the trademarks of The Coca‑Cola utilization capacity of 32.3% and it also has 1. Shareholder the sales carried out. Company. In accordance with those License the capacity to produce mineral water and 2. Subsidiary B R A Brazil

Rio de Janeiro Sales by Sales by Sales by Espiritu Santo Format Soft Channel Flavor Soft Drinks Drinks Part of Sâo Paulo Minas Gerais 62.7% 40.0% 69.1% Multi Serving Traditional Coca-Cola Non-Returnable

Total Per Capita Annual Consumption Franchise Extension 8.5% (8 oz. bottles) Wholesales 261 165 thousand km Juices Clients 33.8% Soft drinks & Others Waters Beers Supermarkets 89 thousand 220 17 6 18 Franchise Population 17.7% Total Sales Volume (MUCs) 21.9 million Multi Serving Returnable 24.4% Others 248.9 Regular Juices Operating Soft drinks & Others Waters Beers Income 14.8% 201.7 22.2 6.0 19.0 Single Serving 17.7% 129.1 MUSD Non-Returnable On-premise Market Share (%)* 5.6% Soft drinks Juices & Others Waters EBITDA 2.3% 2.5% Coca-Cola Light Single Serving Post Mix & Coca-Cola Zero 0.9% Returnable Others 63.2 44.6 10.7 172.1 MUSD Light * Source: AC Nielsen A R G

Consolidated EBITDA – 28 – B R A ARGENTINA BRAZIL 23% 32%

C HI PARAGUAY 11% CHILE 34% P A R Business Description License Agreements Although the term of these agreements is Coca‑Cola Andina Brazil commercializes currently being judicially discussed, it is These License Agreements are international Suppliers of main raw materials Report • Annual 2017 Andina Coca‑Cola products of The Coca‑Cola Company and standard agreements The Coca‑Cola Coca‑Cola Andina’s understanding that 1 Heineken. It produces, sells and distributes Company enters into with bottlers outside the distribution agreements signed after Concentrate: Recofarma Industrias do Amazonas Ltda. the following products licensed by The the United States of America for the sale of May 30, 2003 have a duration term of 20 | Sweetener: Usina Alta Mogiana S.A. Açúcar e Alcool, Coca‑Cola Company: Coca‑Cola, Coca‑Cola concentrate and beverage bases for certain years and are renewable. Central Energetica Moreno Açúcar e Alcool Ltda Zero, Coca‑Cola Stevia, Coca‑Cola Cherry, soft drinks and non-soft drink beverages | Water: Companhia Estadual de Água e Esgoto do Rio de Coca‑Cola Vanilla, Coca‑Cola Laranja, bearing the trademarks of The Coca‑Cola Production and Distribution Janeiro, Departamento de Água e Esgoto de Ribeirão Preto. Coca‑Cola Limão Siciliano, Kuat, Kuat Company. In accordance with these License Coca‑Cola Andina Brazil operates three | Preforms: CPR Industria Com Plasticos Ltda., Engepack Zero, Fanta (4 flavors), Fanta Zero , Sprite, Agreements we have the right to produce production facilities (i) one plant located in Embalagens São Paulo S.A. Sprite Zero, Schweppes Tónica, Schweppes and distribute soft drinks bearing the Jacarepaguá in the State of Rio de Janeiro, with | Packaging (REF PET): RioPet Embalagens S.A., Amcor Citrus, Del Valle 100% (3 flavors), Del Valle trademarks of The Coca‑Cola Company 12 production lines and 67.4% of utilization Rigid Plastic do Brasil Ldta. | Aluminum cans and caps: Frut (4 flavors), Del Valle Mais ( 8 flavors), in our franchise territory. Although this capacity; and (ii) one plant in Ribeirão Preto Ball Embalagens Ltda., Crown Emb Met da Amazonia S.A. Del Valle Mais Light (3 flavors), Del Valle is not an exclusive right, the Coca‑Cola in the state of São Paulo with 11 production | Caps: Bericap do Brasil Ltda., Mirvi Brasil AS, America Reserva (2 flavors), Kapo (5 flavors), Sabores Company has never authorized any other lines and 56.9% Tampas S.A. | Electric energy/gas: Light Caseros, Del Valle Nutri (5 flavors), AdeS entity to produce or distribute soft drinks of utilization Esco Ltda., Companhia Paulista de Forca suco (5 flavors), AdeS leite (3 flavors), Shake or other beverages bearing the trademarks capacity. 12 main clients e Luz y CPFL Comercialização Brasil S.A. Whey (3 flavors), Lacfree (2 flavors), Minilac, of The Coca‑Cola Company in our franchise Additionally, the Companhia Brasileira De | Distributed Products: Leão Alimentos 2 Crystal (carbonated and non-carbonated territory. The agreement states as franchise trial run operation Distribuição Cdb S.A., Assai, e Bebidas Ltda. , Cervejarias Kaiser S.A. mineral water), I9 (4 flavors), Powerade territory: the majority of the State of Rio de of the Duque de Atacadao S.A., Sociedade and Total Distribuidora de Bebidas Ltda. (6 flavors), Powerade Zero, Fuze Ice Tea Janeiro, the totality of the State of Espíritu Caxias plant in Comercial Champfer Ltda., | Thermocontractable: S R Embalagens (2 flavors), Fuze Ice Tea Zero (2 flavors), Santo and part of the states of São Paulo the state of Rio de Supermercados Mundial Ltda., Plasticas Ldta, Patena Ind C R Filmes Fuze Mate Leão (3 flavors), Fuze Mate Leão y Minas Gerais. Janeiro began in Cencosud Brasil Comercial Ltda., PLastico Ldta. and Valfilm ne Industria e Zero (2 flavors), Guaraná Leão (2 flavors), December 2017. Super Market, Super Mercado Zona Comercio de Plasticos Ldta. Matte Leão (2 flavors), and Matte Leão Zero. The term of the agreement with The The distribution Sul S.A., Marko Atacadista S.A., Additionally it distributes the following Coca‑Cola Company is five years beginning of products Distribuidor de Bebidas Real Cola 2 beer brands: Amstel, Bavaria (2 varieties), October 3, 2012, and is in the process of is carried Ltda., Savegnago Supermercados Leão Alimentos e Bebidas Ltda. , Birra Moretti, Desperados, Dos Equis, being renewed. out through Ltda., and Carrefour Comércio e Cervejarias Kaiser S.A. and Recofarma 1 Edelweiss, Heineken, Kaiser (2 varieties), company-owned Indústria Ltda. Industrias do Amazonas Ltda. each Murphy´s, Sol and Xingu. Additionally, all The Coca‑Cola Company, Cervejarías transportation individually concentrate at least 10% the franchise area commercializes AdeS Kaiser S.A., Molson Inc. and the Brazilian companies of the purchases carried out. (9 flavors), Verde Campo products (Shake Association of Manufacturers of Coca‑Cola (862 trucks) None of our clients individually Whey, Lacfree and Minilac) and distributes entered into an agreement of understanding and third party concentrate more than 10% of Monster (4 flavors) and Burn. and a convention regarding the distribution transportation the sales carried out. 1. Related to Shareholder Coca‑Cola de Chile S.A. of beer produced and imported by Kaiser, companies (85 2. Equity investee through Coca‑Cola´s distribution system. trucks). C H I Chile

Antofagasta Sales by Sales by Sales by Atacama Format Soft Channel Flavor Soft Drinks Drinks Coquimbo Metropolitan Region San Antonio 35.5% 47.2% 47.8% Cachapoal Multi Serving Traditional Coca-Cola Aysén Non-Returnable & Magallanes

Total Per Capita Annual Consumption 43.9% Franchise Extension Multi Serving (8 oz. bottles) Returnable 398 thousand km 510 11.9% 24.8% Clients Wholesales Others Soft drinks Juices & Others Waters Regular 65 thousand 388 36 86 Franchise Population 29.0% Supermarkets Total Sales Volume (MUCs) 9.5 million 231.0 22.2% Operating Coca-Cola Light Soft drinks Juices & Others Waters Income & Coca-Cola Zero 157.7 34.3 39.0 12.7% 112.3 MUSD Single Serving Non-Returnable Market Share (%)* 11.9% On-premise Soft drinks Juices & Others Waters EBITDA 4.1% Single Serving 5.2% 67.5 35.7 41.2 178.1 MUSD Returnable Others 3.8% Light * Source: AC Nielsen Post Mix A R G

B R A

Consolidated EBITDA – 30 – C HI ARGENTINA BRAZIL 23% 32%

P A R PARAGUAY 11% CHILE 34%

Business Description License Agreements Coca‑Cola Andina Chile produces and These License Agreements are international legal successor of the license agreement for distributes the following products licensed standard agreements The Coca‑Cola the following territories in Chile: II, III, Report • Annual 2017 Andina Coca‑Cola by The Coca‑Cola Company: Coca‑Cola, Company enters into with bottlers outside IV, XI, and XII regions as well the Chilean Coca‑Cola Light, Coca‑Cola Zero, Fanta the United States of America for the sale Antartic, this agreement is in full force and Suppliers of main raw materials effect until October 31, 2019. Naranja, Fanta Naranja Zero, Inca Kola, of concentrate and beverage bases for Concentrate: Coca‑Cola de Chile S.A.1 | Sweetener: Inca Kola Zero, Nordic Mist Agua Tónica, certain soft drinks and non-soft drink Production and Distribution Iansagro S.A., Sucden Chile S.A. and Sucden Americas Nordic Mist Ginger Ale, Nordic Mist beverages bearing the trademarks of The | Water: Aguas Andinas S.A. | Carbon dioxide: Linde Zero, Quatro (4 flavors), Sprite, Sprite Coca‑Cola Company. In accordance with Coca‑Cola Andina Chile operates 4 production facilities throughout Chile (i) one plant located Gas Chile S.A., Praxair Chile S.A. and Praxair Argentina Zero, Cantarina (5 flavors) Benedictino these agreements we have the right to | Packaging (bottles): Envases CMF S.A.2, Cristalerías de (carbonated and non-carbonated), and produce and distribute soft drinks bearing in Renca with 10 lines and a utilization capacity of 67.3%. (ii) One plant located in Coquimbo Chile S.A. and Cristalerías Toro S.A.C.I. | Aluminum cans Benedictino Touch (2 flavors). Additionally the trademarks of The Coca‑Cola Company 2 with 3 lines and a utilization capacity of 42.0%. and caps: Rexam Chile S.A. | Caps: Envases CMF S.A. , it distributes the following products of Vital in our franchise territory. Although this Sinea S.A. and Alucaps Mexicana S.A. de C.V. Jugos: Andina del Valle (5 flavors), Andina is not an exclusive right, The Coca‑Cola (iii) One plant located in Antofagasta with 5 del Valle Light (3 flavors), Andina del Valle Company has never authorized any other lines and a utilization capacity of 63.0%; and Nutridefensas (2 flavors), Kapo (4 flavors) entity to produce or distribute soft drinks (iv) one plant in Punta Arenas with 2 lines and and; Vital Aguas: Vital (carbonated and non- or other beverages bearing the trademarks a utilization capacity of 35.0%. carbonated); Envases Central: Soft drinks of The Coca‑Cola Company in our franchise The distribution of products is Coca‑Cola de Chile S.A.1, under Coca‑Cola brands in the following territory. done through 80 third party 12 main clients Industria Azucarera transportation companies (471 formats: cans, pet 250 cc and pet 500 cc, Walmart Chile Comercial S.A., Nacional S.A. and also Aquarius (5 flavors), Aquarius Cero (6 This Agreement states as franchise territory: trucks) and Company owned Sucden Chile S.A. each (166 trucks). Cencosud Retail S.A., Rendic flavors) in pet 500 cc and non-returnable the Metropolitan Region in Santiago, the Hermanos. S.A., Alimentos individually concentrate at pet 1.5 liters. Coca‑Cola de Chile S.A.: café Province of San Antonio in the Fifth Region; least 10% of the purchases Coca‑Cola Andina Chile Fruna Ltda., Hipermercados Blak (4 flavors); through the Koolife business and the Province of Cachapoal (including Tottus S.A., Arcos Dorados carried out. unit it imports and distributes Coca‑Cola (3 San Vicente de Tagua-Tagua) in the Sixth also manages 1,194 vending machines for soft drinks and Restaurantes DE, Aramark varieties), Smartwater, GoldPeak (2 flavors), Region. The Bottler Agreement with The Servicios Mineros Y Remotos, GoldPeak Diet, Core Power (3 flavors) and Coca‑Cola Company is in full force and snacks through its subsidiary, Servicios Multivending Ldta. Alvi Supermercados Mayoristas Zico (2 flavors) and it additionally distributes effect until January 1, 2023. S.A., Sodexo Chile S.A., Monster (4 flavors) and all the franchise Compass Catering S.A., area comercializes AdeS (5 flavors). These On the other hand and as a result of the Supermercados Montserrat products are commercializes in returnable merger by absorption of Embotelladoras S.A.C. and Super 10 S.A. and non-returnable glass and pet bottles, Coca‑Cola Polar into Embotelladora Andina post-mix syrup, cans and Tetra Pak. during 2012, The Coca‑Cola Company None of our clients individually authorized Embotelladora Andina to be the 1. Shareholder concentrate more than 10% of 2. Related Company the sales carried out. P A R Paraguay

The entire country Sales by Sales by Sales by Format Soft Channel Flavor Soft Drinks Drinks 40.2% 46.4% 54.3% Multi Serving Traditional Coca-Cola Non-Returnable

Total Per Capita Annual Consumption (8 oz. bottles) Franchise Extension 42.2% 407 thousand km Multi Serving 225 Returnable 15.6% Clients Wholesales Soft drinks Juices & Others Waters 57 thousand 187 15 23 32.3% Franchise Population Others Regular Total Sales Volume (MUCs) 7.0 million 20.2% 65.0 Supermarkets Operating Soft drinks Juices & Others Waters Income 54.1 4.3 6.6 39.2 MUSD 12.8% 17.8% Single Serving On-premise 2.5% Market Share (%)* Non-Returnable Coca-Cola Light & Coca-Cola Zero Soft drinks Juices & Others Waters EBITDA 3.7% Single Serving 10.9% 68.9 43.2 33.4 56.0 MUSD Returnable 1.1% Others Light * Source: AC Nielsen Post Mix A R G

B R A

C HI

Consolidated EBITDA

ARGENTINA BRAZIL – 32 – P A R 23% 32%

PARAGUAY 11% CHILE 34% • Annual Report • Annual 2017 Andina Coca‑Cola Business Description Coca‑Cola Paresa produces, sells and territory. Although this is not an exclusive distributes the following products licensed right, the Coca‑Cola Company has never by The Coca‑Cola Company: Coca‑Cola, authorized any other entity to produce or Suppliers of main raw materials Coca‑Cola Zero, Fanta Naranja, Fanta Naranja distribute soft drinks or other beverages Concentrate: Servicios y Productos Argentina1 and Recofarma Zero, Fanta Naranja Mandarina, Fanta bearing the trademarks of The Coca‑Cola Industrias do Amazonas Ltda.2 | Sweetener: Industria Paraguaya Guaraná, Fanta Piña, Schweppes Tónica, Company in our franchise territory. de Alcoholes S.A. | Water: Coca‑Cola Paresa owns water Schweppes Citrus, Schweppes Pomelo, wells | Packaging (bottles): Cattorini Hnos. (glass) | Plastic Sprite, Sprite Zero, Crush Naranja, Crush The agreement states as franchise territory caps: Andina Empaques Argentina2 and Sinea S.A. | Preforms: Piña, Crush Pomelo, Frugos Manzana, Frugos all of the Paraguayan territory and it is in full Industrias PET S.A. | Electric energy: : ANDE-Administración Durazno, Frugos Naranja, Frugos Naranja force and effect until September 1, 2020. Nacional de Electricidad. Light, Frugos Pera, Frugos Naranja Casera, Aquarius (4 flavors), Dasani (carbonated and Production and Distribution non-carbonated), Powerade (4 flavors) and Coca‑Cola Paresa operates one production 12 main clients Burn. Additionally commercializes AdeS (7 facility located in Asunción with a total Cadena de Supermercados S6, Cadena flavors). These products are commercialized of 8 bottling lines, with 71.0% utilization Industria Paraguaya de Alcoholes de Supermercados Stock, Cadena de S.A., Recofarma Industrias do in returnable and non-returnable glass and capacity, 3 tetra lines with 46.0% utilization Supermercados Real, Tienda de Conveniencia pet bottles, bag-in-box syrup, cans and tetra. capacity and 2 blowing lines with 97.0% Amazonas S.A.2 and Servicios Petrobras, Cadena de Tiendas de Cercanía y Productos Argentina1 each utilization capacity. City Market, Cadena de Supermercados Gran License Agreements individually concentrate at least 10% Vía, Cadena de Supermercado Salemma, of the purchases carried out. These License Agreements are international The distribution of products is carried out Autoservice Sonia, Tienda de Conveniencia standard agreements The Coca‑Cola through third party distributing companies CopeMarket, Bodega Don Juan, Mayorista la Company enters into with bottlers outside with an average fleet of 314 trucks that Alegría and Cadena de Supermercados Pueblo. the United States of America for the sale of deliver our products to clients throughout concentrate and beverage bases for certain Paraguay. soft drinks and non-soft drink beverages bearing the trademarks of The Coca‑Cola Company. In accordance with these License None of our clients individually concentrate Agreements we have the right to produce and more than 10% of the sales carried out. distribute products bearing the trademarks 1. Shareholder of The Coca‑Cola Company in our franchise 2. Related Company – 33 – Other Operations Andina Empaques Argentina S.A.

ndina Empaques Argentina S.A. (hereinafter “AEA”), is a A company formed in 2011 from the division of Embotelladora del Atlántico S.A. for the purpose of designing, manufacturing, and commercializing plastic products, mainly bottles.

In developing its activities in the packaging division and aligned with our strategy to become the supplier of Coca‑Cola Andina's group of companies, during 2017 AEA supplied non-returnable Report • Annual 2017 Andina Coca‑Cola preforms, plastic caps, cases and returnable PET bottles to Coca‑Cola Andina Argentina.

Production and Sales by Format Andina Empaques Argentina operates one plant for the production of preforms, returnable PET bottles, plastic cases and caps located at Tigre in the province Buenos Aires, Argentina. The plant has 13 injection lines, 3 blowing lines, 1 line for cases and 2 lines for caps. Average utilization capacity during 2017 was 79.0% for injection lines, 61.4% for blowing lines, 85.5% for cases and 54.5% for plastic caps. Sales by format during 2017 were 42.4 million PET returnable bottles and 721.0 million preforms for Main Clients non-returnable PET bottles, Embotelladora del Atlántico S.A.1, 0.7 million cases and 569.2 Coca‑Cola Femsa S.A., Paraguay Refrescos Main suppliers of raw materials million plastic caps. S.A.1, Reginald Lee S.A, Grupo Arca and Resin: DAK Americas Argentina S.A., PBB Polisur Montevideo Refrescos S.A. S.A., Dow Chemical and PTT Polymer Marketing Company Lmt. | Coloring: Colormatrix, Kemkoll, Clariant and Arcolor | Ink: Nazdar Shawnee, | Embotelladora del Atlántico S.A.1, Labels: Multi-Color Corp. | Packaging: Argencraf Cola Femsa S.A. and Grupo Arca S.A., N.E.M. S.A., Afema S.A., and Fadecco S.A. each individually concentrate at least | Electric energy: Edenor S.A., Cammesa and 10% of the sales carried out. Termoandes S.A.

DAK Americas Argentina S.A. concentrates by 1. Subsidiary itself at least 10% of the purchases carried out. – 34 – Other Operations Vital Jugos S.A. Sales by Client

Embonor 36.6%

Andina Main Suppliers: n agreement with The Minute Maid Juice Bottler Agreement 63.4% Concentrate: Coca‑Cola I Co. and Coca‑Cola de Chile S.A., Vital In 2005, Vital Jugos S.A. and The Coca‑Cola de Chile S.A.1 | Sweetener: Jugos S.A. produces nectars, fruit juices, Company (“TCCC”) entered into a Juice Embotelladora Andina fantasy drinks and isotonics under the Bottler Agreement by which TCCC S.A.2 | Fruit Pulp: Report • Annual 2017 Andina Coca‑Cola brands: Andina del Valle (fruit juices and authorized Vital Jugos S.A. to produce, Sales by Product Cicocitrico Cutrale-Brasil, fruit nectars), Kapo (fantasy drink) Fuze Tea prepare and bottle in packaging previously Comercializadora Tradecos (ready-to-drink tea), Powerade (isotonic); approved by TCCC the abovementioned Juices Chile Ltda., and Intrafrut and Glaceau Vitamin Water (flavored water brands. Andina and Embonor have the 76.9% Industria Transformadora beverage). The juice brand Andina del Valle right to purchase products from Vital Jugos Fuze Tea de Frutos S.A. | Packaging, is commercialized in Tetra Pak packaging, S.A. Said agreement is currently in the & Others Bottles and Cans: Tetra Pak non-returnable PET bottles, and in returnable process of being renewed. Additionally, 0.8% de Chile Ltda., Envases del and non-returnable glass bottles. Kapo is Andina, Vital Jugos and Embonor have Pacífico S.A.3, Flexa, Envases commercialized in sachets; Fuze Tea in non- Powerade agreed with The Coca‑Cola Company the 12.6% CMF S.A.4 | Caps: Alusud returnable glass bottles; Glaceau Vitamin respective agreements and authorizations Embalajes Chile Ltda., Alucap Water in non-returnable PET bottles and Kapo to produce, package, and sell these products 9.7% S.R.L., Portola Packaging Powerade in non-returnable PET bottles. at their respective production facilities. Inc. (SILGAN)

In January of 2011, the juice production Production and business is restructured allowing the Distribution incorporation of the other Coca‑Cola Vital Jugos S.A. operates one production bottlers in Chile to the ownership of Vital Sales by Format Tetra Pak, Envases facility located in Santiago with 8 lines for CMF S.A.4, S.A., which changes its corporate name to the production of Andina del Valle Fuze Tea, Single Serving Multi Serving Returnable Non-Returnable Coca‑Cola de Vital Jugos S.A. As a result of the merger Powerade, Aquarius and Glaceau Vitamin by absorption of Embotelladoras Coca‑Cola 2.5% 59.6% Chile S.A.1 and Water; and 7 lines for the production of Comercializadora Polar into Embotelladora Andina which Kapo. Average utilization capacity for the took place at the end of 2012, the ownership Tradeco Chile Ltda. year 2017 was 55.4%. In Chile, exclusively each individually structure of Vital Jugos S.A. was amended the Coca‑Cola bottlers in the country beginning November 2012 as follows: Andina concentrate at least distribute the products of Vital Jugos S.A. 10% of the purchases Inversiones Societarias 50%, Embonor S.A. The distribution agreements stipulate the 35% y Embotelladora Andina S.A. 15%. carried out. distribution of products in each of the Single Serving Non-Returnable bottlers’ respective franchise territories. Multi Serving 35.4% Returnable 2.5% 1. Shareholder 2. Parent Company 3. Shareholder related 4. Equity Investee – 35 –

Other Operations

Vital Aguas S.A. Sales by Client Embonor 25.6% Main Suppliers: Concentrate: Coca‑Cola

de Chile S.A.1 | Carbon Report • Annual 2017 Andina Coca‑Cola dioxide: Linde Gas Chile S.A. Andina | Packaging: Envases CMF 74.4% S.A.2, Cristalerías de Chile S.A., and Envases del Pacífico S.A. | Caps: Alusud Embalajes n agreement with The Coca‑Cola Sales by Format Chile Ltda., MBF Embalagens Company, Vital Aguas S.A. prepare and Single Serving LTDA (Aptar) and Envases I Non-Returnable CMF S.A.2 bottle the following brand: Vital (mineral 49.3% water) in the following versions with gas and without gas. Vital mineral water is commercialized in non-returnable glass bottles and non-returnable PET bottles. As a result of the merger by absorption of Embotelladoras Coca‑Cola Polar into Multi Serving Embotelladora Andina which took place at Non-Returnable the end of 2012, the ownership structure 50.7% Envases CMF S.A.2 of Vital Aguas was amended beginning and Coca‑Cola November 2012 as follows: Embotelladora de Chile S.A.1 Andina S.A. 66.5% and Embonor S.A. 33.5%. each individually concentrate at least Water Manufacturer and Production and 10% of the raw Packaging Agreement Distribution material purchases In 2005, Vital Aguas S.A. and The Coca‑Cola Vital Aguas S.A. operates 5 production lines carried out. Company entered into a Water Manufacturing for mineral water and purified water at the and Packaging Agreement for the preparation production facility located in Chanqueahue, and packaging of beverages regarding in the municipality of Rengo in Chile. During the brands Vital, Chanqueahue, Vital de 2017, average utilization capacity was a 58.8%. Chanqueahue and Dasani; incorporating In Chile, exclusively Andina and Embonor, at the beginning of 2008 the Benedictino the other Coca‑Cola bottler in the country, brand to the product portfolio elaborated distribute the products of Vital Aguas S.A. by Vital Aguas S.A. in accordance to this The distribution agreements stipulate the agreement. Said agreement is currently in distribution of products in each of the bottlers’ 1. Shareholder the process of being renewed. respective franchise territories. 2. Equity Investee – 36 – Other Operations Other Operations Envases Central S.A. Envases CMF S.A.

he Company is mainly focused on the nvases CMF produces returnable and Tproduction of the following brands of Main Clients: E non-returnable bottles, returnable and soft drinks: Coca‑Cola, Fanta and Sprite, non- Embotelladora Andina S.A.1 non-returnable preforms and caps. Since

Main Clients: Report • Annual 2017 Andina Coca‑Cola carbonated beverages Aquarius (pear, apple, and Coca‑Cola Embonor S.A. 2012, Envases CMF is owned by Andina Embotelladora Andina S.A.1, Coca‑Cola Embonor lemon, grape and peach) and the energy drink Inversiones Societarias S.A. (50%) and by S.A., Vital Jugos S.A., Vital Aguas S.A., Envases Burn. The canning of these products is in 350 Embonor Empaques S.A. (50%). Central S.A., Embotelladora del Atlántico S.A., ml, 310 ml, 250 ml and 220 ml cans, and the Embotelladora Andina S.A.1 Embonor Empaques S.A., Nestle Chile S.A., Paraguay bottling is in non-returnable PET bottles of and Coca‑Cola Embonor S.A. Production and Sales by Refrescos S.A., Tres Montes S.A., Soprole S.A. and 250 ml, 500 ml, 580 ml, and 1.5 lt (only for each individually concentrate Format Alimentos Cordillera Ltda. Aquarius). The Coca‑Cola bottlers in Chile, at least 10% of the sales Envases CMF operates one production along with Coca‑Cola de Chile, share the carried out. facility for the manufacture of PET bottles 1 ownership of Envases Central. Embotelladora located in Santiago. The plant has 13 preform Embotelladora Andina S.A., Coca‑Cola Andina holds a 59.27% stake, Embotelladora injection lines, 12 blowing lines, 14 lines for Embonor S.A. and Vital Aguas S.A., each individually concentrate at least 10% of the Coca‑Cola Embonor holds a 34.31%, and Main Suppliers: conventional injection, 4 injector blowing Coca‑Cola de Chile holds a 6.42% stake. lines and 3 extraction-blowing lines. During sales carriedout. Aluminum cans and caps: 2017, average utilization capacity of the License Agreement Ball Chile S.A. | Concentrate: production lines was 67.0%, 64.0%, 65.0%, These License Agreements are international Coca Cola de Chile S.A.2 | 65.0% and 55.0%, respectively. standard agreements The Coca‑Cola Company Sweetener: Embotelladora Main Suppliers: enters into with bottlers outside the United Andina S.A.1 | Plastic Bottles: Sales by format during 2017 were 234 million Resin: Jiangyin Xingyu New Material Co., Far States of America for the sale of concentrateand Envases CMF S.A.3 | Plastic non-returnable PET bottles, 29 million Eastern Textile Ltd., Dak Americas LLC USA and beverage bases for certain Coca‑Cola soft caps: Envases CMF S.A.3 returnable PET bottles and 514 million China Resources | Masterbatch: Clariant Plastic & drinks and non-soft drink beverages. The preforms for non-returnable bottles and 751 Coatings Chile S.A., Colormatrix do Brasil Industrial term of the agreement with The Coca‑Cola million products from conventional injection. and Ampacet Chile Ldta. | Ink: Nazdar Shawnee and Company is in effect until March 31, 2021. Siegwerk Chile S.A. | Labels: Multi-Color Corp. | Packaging: Impresos y Cartonajes S.A., Corrupac S.A., Production and Distribution Ball Chile S.A., Coca‑Cola de 3 Volcanes Ltda. and Plastyverg Industrial Limitada Envases Central S.A. operates one production Chile S.A.2, Embotelladora facility located in Santiago, with 1 line for cans Andina S.A.1, Envases CMF and 1 line for PET bottles. During 2017, the S.A.3 each individually Jiangyn Xingyu New Material Co., Dak canning and bottling lines operated at an concentrate at least 10% of Americas LLC USA , China Resources and average of 60%, of its installed capacity. In the raw material purchases Far Eastern Textile LTD., each individually Chile, exclusively the Coca‑Cola bottlers in carried out. concentrate at least 10% of the raw material the country distribute the products of Envases purchases carried out. Central S.A. The distribution agreements 1. Parent Company stipulate for the distribution of products within 2. Shareholder 1. Parent Company each of the respective franchise territories. 3. Equity Investee RS17

Corporate Social Responsibility

Sustainability Report 2017 Coca-Cola Andina #goPaperless A R G B R A C HI P A R – 38 – Corporate Social Responsibility Axis of our Sustainability he 2017 Sustainability Report details relevant information Management: T for our stakeholders. It reflects the Company’s actions and collects the valuable contributions of our collaborators from ate Gover orpor nance Argentina, Brazil, Chile and Paraguay. C W ts a te In the document you can find projects and actions that inspire ne r e S others and that generate value for our collaborators, clients, B te e w

g a Report • Annual 2017 Andina Coca‑Cola consumers, suppliers and for the communities where we have a r r d the privilege to operate. e s v h e i

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Learn about the lessons learned and You can access our work plans in each of the pillars of our Sustainability Report by sustainability strategy, accessing our scanning the QR code Sustainability Report. (Spanish version), or on our website. NOTE: We prepare this report in accordance with GRI International Sustainability guidelines and the International Standard of Social Responsibility ISO 26000. Additional Information Capital Expenditures – 40 –

Additions to property, plant & equipment

(NOMINAL MILLON DOLLARS) 2017 2016 2015 • Annual Report • Annual 2017 Andina Coca‑Cola

Embotelladora del Atlántico S.A. 47.1 57.8 35.0

Andina Empaques Argentina S.A. 1.9 3.7 1.9

Rio de Janeiro Refrescos Ltda. 112.1 51.5 41.1

Embotelladora Andina S.A. 45.0 44.4 69.3

Vital Jugos S.A. 1.1 7.3 3.2

Vital Aguas S.A. 0.3 2.6 1.3

Envases Central S.A. 4.4 1.0 1.8

Paraguay Refrescos S.A. 16.0 16.1 16.0

TOTAL 227.9 184.4 169.6 – 41 – Financial Coca‑Cola Andina uses exchange Activities rate hedging agreements from time to time to backup commitments in currencies different from those used in its operations, due to obligations arising from

acquisition of fixed assets and/or raw Report • Annual 2017 Andina Coca‑Cola uring 2017, the Company did not use In addition to the Cross Currency Swaps, D external financing to cover temporary Coca‑Cola Andina periodically uses exchange material purchases. cash deficits and a part of its investment plan. rate hedging agreements from time to time to backup commitments in currencies As of December 31, 2017 Company net debt different from those used in its operations, amounted to US$864.5 million. This figure due to obligations arising from acquisition of is calculated considering the mark to market fixed assets and/or raw material purchases. of Cross Currency Swaps ("CCS") entered into to hedge the debt in U.S. dollars. Investment and Financing Policy Total financial assets, including the The Deeds of Coca‑Cola Andina do not to stoppage, including lost profits as a result aforementioned CCS amounted to US$345.3 define a fixed financing structure or an of such accidents. Additionally, there are million. Excluding the CCS, financial assets investment policy. Within the faculties that other policies with specific coverage among amounted to US$244.6 million. This cash the Shareholders have given, the Board others: transportation, motor vehicles, surplus is invested in short-term fixed of Directors has the faculty to define the terrorism, civil liability and product civil income money markets and time deposits, financing and investment policy. liability. and 53.9% is denominated in Chilean Pesos, 14.7% in Brazilian Real, 13.3% in Argentine On the other hand, during Board Session Equipment Pesos, 9.2% in UFs, 5.8% in Paraguayan held December 20, 2011, supplemented by Main equipment is composed of bottling Guaraní and 3.1% in U.S. Dollars. the agreements during Board Session held lines and auxiliary equipment, market August 28, 2012, it was established that the assets, and packaging and distribution Financial debt level reached US$1,209.8 realization of certain types of investments assets. All of them are well preserved million, US$575 million of which correspond and the hiring of certain financing requires and are sufficient to sustain the normal to a bond in the international market, prior consent of the Company's Board of functioning of operations. US$512.7 million to bonds in the local Directors Chilean market and US$122.1 million to Research and Development bank debt Financial debt including the Insurance Given the line of business and the support CCS effect is 65.2% denominated in UFs, Coca‑Cola Andina and its subsidiaries provided by The Coca‑Cola Company as 30.5% in Brazilian Real, 2.2% in Argentine maintain insurance policies with top of franchisor to its bottlers, the Company’s Pesos, 1.4% in Chilean Pesos, 0.6% in U.S. the line companies. The principal policies research and development expenses are Dollars, and 0.1% in Paraguayan Guaraní. cover: fire risks, earthquake and losses due not meaningful. – 42 – such approval. Under these Bottler or Nonalcoholic beverage business Risk License Agreements, we are prohibited environment: consumers, public health from producing, bottling, distributing or officials and government officials in the selling any products that could be substituted majority of our markets, are increasingly Factors for, be confused with or be considered an concerned with public health consequences imitation of, soft drinks or other beverages associated with obesity, particularly among and products bearing the trademarks of young people. In addition, some researchers, We have identified the following risks that could The Coca‑Cola Company. health advocates and dietary guidelines significantly and adversely affect the Company’s are encouraging consumers to reduce financial condition and operating results. We depend on The Coca‑Cola Company to consumption of sugar-sweetened beverages renew our Bottler or License Agreements. and beverages sweetened with nutritive or We currently are party to two bottler alternative sweeteners. Increasing public agreements in Chile, one agreement for concern about these issues; possible new taxes Brazil, one agreement for Argentina, and one on sugar-sweetened beverages; additional Report • Annual 2017 Andina Coca‑Cola agreement for Paraguay. We cannot provide governmental regulations concerning the any assurance that our bottler agreements marketing, labeling, packaging or sale of our Relationship with The Coca‑Cola Company: will be maintained or extended upon their beverages; and negative publicity resulting 72.3% of our net sales for the year ended The Coca‑Cola Company also monitors termination. Even if they are renewed, from actual or threatened legal actions December 31, 2017 were derived from our prices and has the right to review and we cannot provide any assurance that against nonalcoholic beverage companies the distribution of soft drinks under The approve our marketing, operational and renewal will be granted on the same terms relating to the marketing, labeling or sale Coca‑Cola Company trademarks, and an advertising plans. as those currently in effect. Termination, of beverages may reduce demand for our additional 21.6% was derived from the non-extension or non-renewal of any of our products, which could adversely affect our distribution of other beverages also bearing These factors may impact our profit bottler agreements would have a material profitability. trademarks owned by The Coca‑Cola margins, which could adversely affect our adverse effect on our business, financial Company. We produce, market and net income and operating results. Our condition and results of operation. The nonalcoholic beverage business distribute products bearing the trademarks marketing campaigns for all products are environment in our territories is evolving of The Coca‑Cola Company through designed and controlled by The Coca‑Cola In addition, any acquisition we make of rapidly as a result of, among other things, standard bottler agreements between our Company. The Coca‑Cola Company also bottlers of Coca‑Cola products in other changes in consumer preferences, including bottler subsidiaries and, in each case, The makes significant contributions to our territories may require, among other things, changes based on health and nutrition Coca‑Cola Company’s local subsidiary or marketing expenses, although it is not the consent of The Coca‑Cola Company under considerations and obesity concerns; The Coca‑Cola Company, or, in the case required to contribute a particular amount. bottler agreements to which such other shifting consumer tastes and needs; changes of juices and nectars, The Minute Maid Accordingly, The Coca‑Cola Company may bottlers are subject. We cannot assure you in consumer lifestyles; and competitive Company, a subsidiary of The Coca‑Cola discontinue or reduce such contribution at that The Coca‑Cola Company will consent product and pricing pressures. In addition, Company. The Coca‑Cola Company has any time. Pursuant to the Bottler or License to any future geographic expansion of our the nonalcoholic beverage retail landscape the ability to exercise substantial influence Agreements, we are required to submit a Coca‑Cola beverage business. In addition, is dynamic and constantly evolving, and if over our business through its rights under business plan to The Coca‑Cola Company we cannot assure you that our relationship we are unable to adapt successfully to the these Bottler or License Agreements. Under for prior approval on a yearly basis. In with The Coca‑Cola Company will not changing environment and retail landscape, these Bottler or License Agreements, The accordance with our Bottler or License deteriorate or otherwise undergo significant our share of nonalcoholic beverage sales Coca‑Cola Company unilaterally sets the Agreements, The Coca‑Cola Company changes in the future. If such changes do and overall financial results will be adversely prices for concentrate and soft drinks (for may, among other things, require that we occur, our operations and financial results affected. soft drinks pre-mixed by The Coca‑Cola demonstrate the financial ability to meet and condition could be materially affected. Company) sold to us and in the future it may our business plan, and if we are not able Competitive environment: generally, increase the price we pay for concentrate, to demonstrate our financial capacity, The the soft drink and nonalcoholic beverage increasing our costs. Coca‑Cola Company may terminate our businesses are highly competitive in each rights to produce, market and distribute of the territories in which we operate. We Coca‑Cola soft drinks or other Coca‑Cola compete with bottlers of local and regional beverages in territories where we have brands, including low cost beverages and – 43 – Pepsi products. This competition in each Instability in the supply of utility services: on ownership and water usage in Chile as well as judicial procedural stages. We of the regions where we operate is likely to our operations depend on a stable supply and Paraguay. disagree with the Brazilian tax authority’s continue, and we cannot assure you that of utilities and fuel in the countries where position and believe that it was entitled to it will not intensify in the future, which we operate. Electrical power outages could Labeling requirements: the countries in claim IPI tax credits in connection with its could materially and adversely affect our lead to increased energy prices and possible which we operate may adopt significant purchases of certain exempt inputs from financial condition and operating results. service interruptions. Interruptions in advertising restrictions as well as additional suppliers located in the Manaus Free Trade the supply of water or energy could also product labeling or warning requirements Zone. We estimate that the Brazilian tax Raw material prices: numerous raw generate an increase of our production relating to the chemical content or perceived authority’s claims are without merit. Our materials, including concentrate, sugar costs and possible service interruptions. adverse health consequences of certain of our external Brazilian counsel has advised us and resin, are used in producing beverages We cannot assure you that in the future we Coca‑Cola products or other products. We will that it believes Ipiranga’s likelihood of and containers, which prices may present will not experience energy or water supply also be subject to uncertainty with respect loss in most of these procedures should great volatility. Prices for concentrate are interruptions that could materially and to the interpretation of the regulations, and be classified as possible to remote (i.e., determined by The Coca‑Cola Company, and adversely affect our business. In addition, a any ambiguity or uncertainty with respect approximately 30% likelihood). Despite the we cannot assure you that The Coca‑Cola significant increase in energy prices would to the interpretation or application of the foregoing, the outcome of these claims is Report • Annual 2017 Andina Coca‑Cola Company will not increase the price for raise our costs, which could materially impact regulation could result in non-compliance subject to uncertainty, and it is impossible concentrate or change the manner in which our operating results. Fluctuations in oil and associated costs and penalties, which to predict its final resolution. Finally, these prices are calculated. We purchase prices have adversely affected our cost of are difficult to predict. These types of pursuant to the agreement under which our raw materials from both domestic and energy and transportation in the regions requirements, may adversely affect sales we agreed to acquire Ipiranga's shares, international suppliers, some of which must where we operate and we expect that they will of our products. the sellers agreed to indemnify us for such be approved by The Coca‑Cola Company, continue to do so in the future. We cannot tax obligations and established a five-year which may limit the number of suppliers assure you that fuel prices will not increase Brand image and product quality: our duration escrow account, in an amount available to us. Because the prices of the in the future, and a significant increase in beverage business is highly dependent on equivalent to R$286,446,799. main raw materials are denominated in fuel price may have a significant effect on maintaining the reputation of our products U.S. dollars, we are subject to local currency our financial performance. in the countries where we operate. If we Trademark infringement: a significant risk with respect to each of our operations. fail to maintain high standards for product portion of our sales derives from sales If any of the Chilean peso, Brazilian real, Water scarcity and poor water quality: quality, our reputation and ability to remain of soft drinks branded with Coca‑Cola Argentine peso, or Paraguayan guaraní were water is the main ingredient in substantially a distributor of Coca‑Cola beverages in trademarks, as well as other trademarks. to depreciate significantly against the U.S. all of our products. It is also a limited the countries where we operate could be If other parties attempt to misappropriate dollar, the cost of certain raw materials in our resource in many parts of the world, jeopardized. In addition, we may be liable trademarks we use, we may be unable to respective territories could rise significantly, facing unprecedented challenges from if the consumption of any of our products protect these trademarks. The maintenance which could have an adverse effect on our overexploitation, increasing pollution and causes injury or illness. Negative publicity of the reputation of these brands is essential financial condition and operating results. poor management. As demand for water or incidents related to our products may for the future success of our beverage We cannot assure you that these currencies continues to increase around the world, and reduce their demand and could have a business. Misappropriation of trademarks will not lose value against the U.S. dollar in as the quality of available water deteriorates, material adverse effect on our financial we use, or challenges thereto, could have the future. Additionally, some raw material we may incur increasing production costs or performance. a material adverse effect on our financial prices are subject to high volatility, which face capacity constraints that could adversely performance. could also have a material adverse effect affect our profitability or net operating Tax uncertainty in Brazil: Ipiranga, on our profitability. The supply or cost of revenues. We are also subject to uncertainty absorbed by Rio de Janeiro Refrescos Weather conditions and natural disasters: specific raw materials could be adversely regarding the interpretation of the laws of Ltda. In December 2013, is party to a lower temperatures and higher rainfall affected by domestic or global price changes, the countries in which we operate, and any series of ongoing administrative tax may negatively and significantly impact strikes, weather conditions, governmental ambiguity or uncertainty regarding the proceedings in which the Brazilian federal consumer patterns, which may result controls or other factors. Any sustained interpretation or application of regulations tax authorities have claimed that Ipiranga in lower per capita consumption of our interruption in the supply of these raw can result in increased production costs or has unpaid liabilities for value-added taxes beverage offerings. Additionally, adverse materials or any significant increase in their penalties for non-compliance, which are on industrialized products (imposto sobre weather conditions or natural disasters may price could have a material adverse effect impossible or difficult to predict. We also produtos industrializados, or IPI) for a affect road infrastructure in the countries on our financial performance. anticipate discussions on new regulations total amount of R$1,147,000,000. These in which we operate and limit our ability procedures are at different administrative to sell and distribute our products. – 44 – Insurance coverage: we maintain insurance In addition, in these periods the companies Regulation, which is complex and subject to regulations, some of which are or may for our principal facilities and other assets. based in the countries where we operate change: we are subject to local regulations in be significant. In addition, Coca‑Cola Our insurance coverage protects us in the have faced higher costs for raising funds, each of the territories in which we operate. Andina Brazil is party to a series of ongoing event we suffer certain losses resulting both domestically and abroad, as well The principal areas in which we are subject administrative tax proceedings in which from theft, fraud, expropriation, business as limited access to international capital to regulation are water, environment, labor, the Brazilian federal tax authorities have interruption, natural disasters or other markets, which have negatively affected taxation, health, consumer protection, claimed that Coca‑Cola Andina Brazil has similar events or from business interruptions the prices of the aforementioned countries’ advertising and antitrust. Regulation could unpaid liabilities for value-added taxes on caused by such events. We cannot assure you securities. Although economic conditions also affect our ability to set prices for our industrialized products (imposto sobre that our insurance coverage will be sufficient are different in each of the emerging- products. The adoption of new laws or produtos industrializados, or IPI) involving or will provide adequate compensation for market countries, investors’ reactions to regulations or a stricter interpretation or aggregate claims of a significant amount. losses that we may incur. developments in one of these countries enforcement thereof in the countries in Adverse judgments or determinations in may affect the securities of issuers in the which we operate may increase our operating one or more of these proceedings could Information systems: we are increasingly others. For example, adverse developments costs or impose restrictions on our operations require us to change the way we do business dependent on information technology in emerging market countries may lead which, in turn, may adversely affect our or use substantial resources in adhering to Report • Annual 2017 Andina Coca‑Cola networks and systems, including over the to decreased investor interest in investing financial condition, business and results. the settlements and could have a material Internet, to process, transmit and store in the securities of Chilean companies, Further changes in current regulations adverse effect on our business, including, electronic information. In particular, we including the bonds. may result in increased compliance costs, among other consequences, by significantly depend on our information technology which may have an adverse effect on our increasing the costs required to operate infrastructure for digital marketing activities Collective labor Agreements, strikes or results or financial condition. our business. Ineffective communications, and electronic communications among us other labor unrest: a substantial portion during or after these proceedings, could and our clients, suppliers and also among of our employees is covered by collective Expenses in relation with environmental amplify the negative effects, if any, of these our subsidiaries. Infrastructure failures bargaining labor agreements. Our inability to laws and regulations: we are subject to proceedings on our reputation and may can create system disruptions, shutdowns renegotiate these agreements on satisfactory various environmental laws and regulations result in a negative market impact on the or unauthorized disclosure of confidential terms could cause work strikes and that apply to our raw materials, products price of our securities. Additionally, adverse information. If we are unable to prevent interruptions, which may adversely impact and activities. If these laws and regulations preliminary decisions in one or more of such breaches, our operations could be our operations. Amendments to the terms are strengthened or newly established in these proceedings may require the use of disrupted, or we may suffer financial damage and conditions of existing agreements could jurisdictions in which we conduct our substantial financial resources during its or loss because of lost or misappropriated also increase our costs or otherwise have an businesses, we may be forced to incur review by a higher court. information. adverse effect on our operational efficiency. considerable expenses in order to comply We experience periodic strikes and other with such laws and regulations. Similarly, New tax laws or amendment of existing Perception of risk in emerging economies: forms of labor unrest through the ordinary existing environmental laws already in laws. Tax incentives: we cannot assure international investors, as a general rule, course of business. For example, in 2008 effect, could also force us to incur expenses. you that any governmental authority in consider the countries where we operate to be we experienced a strike in our production Such expenses may have a material adverse any country where we operate will not emerging market economies. Consequently, facilities in Chile, which lasted for a period effect on our operating results and financial impose new taxes or increase taxes on economic conditions and the market for of approximately two weeks, and which had a position. To the extent we determine that it our raw materials, products or packaging. securities of emerging market countries significant effect on our production capacity. is not financially sound for us to continue The imposition of new taxes or increases influence investors’ perceptions of Chile, We cannot assure you labor interruptions to comply with such laws and regulations, in taxes on our raw materials, products or Brazil, Argentina and Paraguay and their or other labor unrest will not occur in we may have to curtail or discontinue our packaging may have a material adverse evaluation of securities of companies located the future. If we experience strikes, work activities in the affected business areas. effect on our business, financial condition, in these countries. stoppages or other forms of labor unrest at prospects and results. Equally, we cannot any of our production facilities, our ability Adverse determinations in legal assure that authorities will maintain and/or During periods of heightened investor to supply finished beverages to customers proceedings: in the regular course of our renew tax incentives that currently benefit concern regarding emerging market could be impaired, which would reduce our business, we become involved in various some of our operations. Amendments or economies, the countries where we operate net operating revenues and could expose other claims, lawsuits, investigations non-renewal of such incentives can have a may experience significant outflows of us to customer claims. and governmental and administrative relevant adverse impact on our business, U.S. dollars. proceedings, including for example, financial condition, prospects and results. proceedings associated with free competition political and social unrest, inflationary and and direct investment disclosure obligations. – 45 – Argentine peso depreciation pressures and In addition to statutory and administrative A R G lack of consumer and investor confidence, rules affecting our Argentine subsidiary’s which have forced the Argentine government payment of dividends, during 2012 the Risks Relating to adopt different measures, including the Argentine government imposed discretionary to Argentina: tightening of foreign exchange controls, the restrictions on Argentine companies as part Economic conditions in Argentina: 9.0% elimination of subsidies to the private sector of a policy to limit outbound transfers of U.S. ofB ourR assetsA as of December 31, 2017 and and the proposal for new taxes. dollars. These de facto restrictions essentially 29.9% of our net sales for the year ended halted dividend payments to non-resident December 31, 2017 corresponded to our On the other, until December 2015, the shareholders. The new Argentine Government operations in Argentina. Because demand Argentine government increased its which took office in December 2015 has forC softHI drinks and beverage products is intervention level in some of the areas of significantly diminished these restrictions usually correlated to economic conditions the economy. For example, in May of 2012, and our subsidiary in Argentina could prevailing in the local market, which in turn is the Argentine government nationalized YPF recently distribute dividend. Nonetheless, Report • Annual 2017 Andina Coca‑Cola dependent on the macroeconomic condition S.A., Argentina’s largest and previously we cannot assure you that we will be able to of the country, the financial condition and Spanish-owned oil company and previously cause our subsidiary in Argentina to distribute operatingP A resultsR of our business operations of the Argentine State. Expropriations dividends to its non-resident shareholders in Argentina are, to a considerable extent, and other interventions by the Argentine now or in the foreseeable future, despite dependent upon political and economic government such as the one relating to YPF otherwise meeting all statutory and regulatory conditions prevailing in Argentina. can have an adverse impact on the level of requirements for payment. foreign investment in Argentina, the access The economic crisis in Europe, the of Argentine companies to the international Restrictions on imports: pursuant to a international demand for Argentine products, capital markets and Argentina’s commercial resolution of the Argentine Federal Tax the instability and competitiveness of the and diplomatic relations with other countries. Authority (“Administración Federal de Argentine peso against foreign currencies, Despite the Government change occurred Ingresos Públicos—AFIP”), since February confidence among consumers and foreign in December 2015 in Argentina,, the level of 2012, prior to the execution of any purchase and domestic investors, the significant governmental intervention in the economy order or similar document, Argentine inflation rate and future political, financial in the future may continue, which may have importers were required to file before the and economic uncertainties, among other adverse effects on Argentina’s economy and, AFIP a “Prior Import Statement” (Declaración factors, may affect the development of the in turn, our business, operating results and Jurada Anticipada de Importación) providing Argentine economy. financial condition. information on future imports. Compliance with this requirement was verified by the Political and economic instability in Restrictions on currency conversions and Argentine customs upon arrival of the during the period from 1998 Argentina: remittances abroad: under current Argentine goods into Argentina and was a condition through 2003, Argentina experienced law, we may declare and distribute dividends for the authorization of the payment of the acute economic difficulties that culminated with respect to our Argentine subsidiary purchase price by the Argentine financial in the restructuring of substantially all of and Argentine banks may lawfully process entities. Although this is intended merely Argentina’s sovereign indebtedness. There payments of those dividends to us and other as an information regime, it may be used was a succession of presidents during this non-resident shareholders. Our declaration for purposes of restricting imports into crisis period and various states of emergency and distribution of dividends is subject to Argentina. A similar regime was also imposed were declared that suspended civil liberties certain statutory requirements and must in respect of the import and export of services, and instituted restrictions on transfers of be consistent with our audited financial and resulted in additional restrictions being funds abroad and foreign exchange controls, statements. The processing of payment of imposed on the payments made by Argentine among other measures. dividends by Argentine banks is subject residents on services provided by foreign to Argentine Central Bank regulations, residents. While the change of the Argentine The global economic crisis of 2008 led to a including verification of our Argentine Government occurred in December 2015 sudden economic decline, accompanied by subsidiary’s compliance with foreign debt considerably relaxed restrictions on imports of goods and services, replacing the AISS High inflation would also undermine against the U.S. dollar, the euro or other or the provision of additional employee by a Comprehensive System of Monitoring Argentina’s foreign competitiveness foreign currencies. With the change of the benefits in the future, which could have a – 46 – Imports (Sistema Integral de Monitoreo and adversely affect economic activity, Argentine Government in December 2015, material and adverse effect on our expenses de Importaciones - SIMI) (together with employment, real salaries, consumption the exchange market was released, although and business, operating results and financial the implementation of automatic and non- and interest rates. In addition, the dilution not completely, and the gap between the condition. automatic licenses) while maintaining the of the positive effects of the Argentine peso exchange rate published by the BCRA and DJAS, we cannot assure that those restrictions devaluation on the export-oriented sectors the black market exchange rate considerably Legislative and public policy changes: during will be completely removed or that it will not of the Argentine economy even attached reduced. We cannot predict how these the year 2015 a new Civil and Commercial return to the previous situation. Restrictions to the exchange restriction elimination, conditions will affect the consumption of Code of the Republic of Argentina came into on Argentine imports of goods and services could decrease the level of economic our products. Moreover, we cannot predict force that regulates all legal relations of our of our subsidiaries may adversely affect our activity in the country. In turn, a portion whether the Argentine government will Argentine subsidiary with its customers, financial conditions or operating results. of the Argentine debt is adjusted by the continue its monetary, fiscal, and exchange suppliers and consumers. In addition, the Coeficiente de Estabilización de Referencia, rate policy amendments and if so, what new Argentine Government which took Inflation in Argentina: Argentina has the Stabilization Coefficient Index, or “CER impact any of these changes could have office in December 2015 announced that experienced high levels of inflation in recent Index,” a currency index that is strongly on the value of the Argentine peso and, it is considering various bills that could Report • Annual 2017 Andina Coca‑Cola decades, resulting in large devaluations of its tied to inflation. Therefore, any significant accordingly, on our financial condition, amend the Argentine legislation on issues currency. Moreover, after changes in personnel increase in inflation would cause an increase operating results and cash flows, and on such as tax, customs, social security, labor, and in the methodology used to calculate the in Argentina’s debt and, consequently, the our ability to transfer funds abroad in order commercial, among other areas. Also, the consumer price index at the INDEC in 2007, country’s financial obligations. A high to comply with commercial or financial new Government has announced changes the accuracy of its measurements has been level of uncertainty with respect to these obligations. According to IFRS, which is in various public policies, including an put in doubt by economists and investors, economic indicators, and a general lack of the method under which the Company increase in controls of the competition act. and the consumer price index and wholesale stability with respect to inflation, could cause presents its results, the results generated by We cannot guarantee that these legislative price index could have been substantially a shortening of contract terms and affect our operations in Argentina are translated amendments, if approved, may not adversely higher than those indicated by the INDEC the ability of businesses to plan and make to the reporting currency using the official affect our financial condition or operating until December 2015. With the change of the decisions, thereby potentially materially exchange rate. results of our Argentine subsidiaries. Argentine Government in December 2015, and adversely affecting economic activity INDEC suspended the issuance of reports and lowering consumers’ and individuals’ Preempt or respond to social unrest: on consumer price index and wholesale income and their purchasing power, all of future government policies to preempt, or price index until June 2016, date on which which could have a material adverse effect on in response to, social unrest may include INDEC began reporting new indexes. We our financial condition and operating results. expropriation, nationalization, forced cannot assure that the new indexes will be renegotiation or modification of existing appropriate. The lack of issuance of consumer Ability to obtain financing and to attract contracts, suspension of the enforcement price indexes and other proper indexes could direct foreign investment: Argentina has of creditors’ rights, new taxation policies cause a significant decrease in confidence limited access to foreign financing. Should and changes in laws and policies affecting in the Argentine economy, which could, in it not have access to international private foreign trade and investment. Such policies turn, have a material adverse effect on our financing, Argentina would not be able to could destabilize the country and adversely operations and financial condition. finance its obligations, which could also and materially affect the Argentine economy, inhibit the ability of the Argentine Central and thereby our business, operating results In the past, inflation has materially Bank to adopt measures to curb inflation and and financial condition. undermined the Argentine economy could adversely affect Argentina’s economic and the government’s ability to generate growth and public finances, which could, Salary increases to be paid to employees conditions that foster economic growth. in turn, adversely affect our operations in in the private sector: in the past, Argentine In addition, high inflation or a high level of Argentina, as well as its financial condition. governments have passed laws, regulations price instability may materially and adversely and decrees requiring companies in the affect the business volume of the financial Depreciation and volatility of the Argentine private sector to increase wages and provide system. This result, in turn, could adversely peso: given the economic and political specified benefits to employees, and it can affect the level of economic activity and conditions in Argentina, we cannot predict occur again in the future. It is possible that employment in the country. whether, and to what extent, the value of the the Argentine government could adopt Argentine peso may depreciate or appreciate measures mandating salary increases and/ A R G

– 47 – B R A

Risks Relating to Brazil EconomicC HI conditions in Brazil: 37.7% of foreign exchange adjustments, control over addition, inflation could also affect us and administrative procedures involving very our assets as December 31, 2017 and 32.6% remittances abroad and intervention by the indirectly, as our customers may also be significant total sums. Adverse judgments of our consolidated net sales for the year Central Bank of Brazil to change the basic affected and have their financial capacity or determinations in one or more of these ended December 31, 2017 corresponded to interest rates. We cannot foresee or control reduced. Any decrease in our net sales or procedures, or changes in how certain tax our operations in Brazil. Because demand which measures or policies the Brazilian net income, as well as any reduction in our rules are currently interpreted, could not forP softA drinksR and beverage products is government may adopt in the future. Our financial performance, may also result in a only have very significant adverse effects usually correlated to economic conditions activities, financial and operating results, reduction in our net operating margin. Our for our Company, but could also require prevailing in the relevant local market, which as well as our estimates may be adversely customers and suppliers may be affected that we change our way of doing business, in turn is dependent on the macroeconomic affected by changes in the policies adopted by high inflation rates and such effects on implying a significant increase in the costs Report • Annual 2017 Andina Coca‑Cola condition of the country in which the market by the Brazilian government. our customers and suppliers may adversely required to operate. is located, our financial condition and affect us. operating results to a considerable extent Any unfavorable policy changes by the are dependent upon political and economic Brazilian government could adversely affect Depreciation and volatility of the Brazilian conditions prevailing in Brazil. The Brazilian us. Uncertainty over whether the Brazilian real: the Brazilian currency has fluctuated economy is also affected by international government will implement changes in over the past three decades. We cannot economic and market conditions in general, policy or laws affecting these and other guarantee that the real will not again especially economic and market conditions factors in the future may contribute to depreciate or appreciate against the in the United States. Similarly to other economic uncertainty in Brazil. These U.S. dollar in the future. In addition, we emerging market countries, the Brazilian factors, as well as uncertainties about the cannot guarantee that any deprecation or currency depreciated significantly during policies or regulations to be adopted by the appreciation of the real against the U.S. 2014, attributed in part to an outflow of Brazilian government with respect to these dollar or other currencies will not have an capital related to the expectation that the factors may adversely affect us, including adverse effect on our business. United States Federal Reserve will reduce our activities and financial performance. or end its “quantitative easing” economic Any depreciation of the real against the U.S. stimulus measures. The Brazilian economy Inflation in Brazil: Brazil has historically dollar could create additional inflationary is therefore subject to uncertainties and risks experienced extremely high rates of inflation. pressure, which might result in the Brazilian related to changes in economic conditions Inflation and several measures taken by the government adopting restrictive policies to and policy measures in countries such as Federal Government in order to control it, combat inflation. This could lead to increases the United States and China, as well as the combined with speculation about possible in interest rates, which might negatively European Union and elsewhere. government measures, had significant affect the Brazilian economy as a whole, negative effects on the Brazilian economy. as well as our operating results, in addition The Brazilian government’s influence to restricting our access to international over the Brazilian economy: the Brazilian Inflationary pressures may result in financial markets. It also reduces the government has intervened in the Brazilian governmental interventions in the economy, U.S. dollar value of our revenues. On the economy and occasionally makes significant including policies that could adversely affect other hand, future appreciation of the real changes to monetary, tax and credit policies, the general performance of the Brazilian against the U.S. dollar might result in the among others. The Brazilian government’s economy, which, in turn, could adversely deterioration of Brazil’s current and capital measures to control inflation, stimulate affect our business operations in Brazil. accounts, as well as a weakening of Brazilian economic expansion and implement other Inflation may also increase our costs and GDP growth derived from exports. policies have included, among others, expenses, and we may be unable to transfer salary and price controls, appreciation such costs to our customers, reducing Adverse judicial determinations: Coca‑Cola or depreciation of the Brazilian real, our profit margins and net income. In Andina Brasil is part of a series of tax, judicial A R G – 48 –

A R G B R A

C HI B R A

C HI P A R Report • Annual 2017 Andina Coca‑Cola

Risks Relating Risks Relating to Chile to Paraguay 40.7% of our of the debt reflects any increase of the EconomicP A conditionsR in Chile: Economic conditions in Paraguay: 12.5% of Inflation in Paraguay: An increase in assets as of December 31, 2017 and 29.8% of inflation in Chile. our assets as of December 31, 2017 and 7.6% inflation in Paraguay could decrease the our net sales for the year ended December of our net sales for the year ended December purchasing power of our consumers in the 31, 2017 corresponded to our operations in The Chilean peso is subject to depreciation 31, 2017 corresponded to our operations in country, which could adversely affect our Chile. Thus, our financial condition and and volatility: the Chilean government’s Paraguay. Because demand for soft drinks volumes and impact our sales income. We operating results depend significantly on economic policies and any future changes in and beverage products is generally related cannot assure you that inflation in Paraguay economic conditions prevailing in Chile. the value of the Chilean peso against the U.S. to the economic conditions prevailing in will not increase significantly, although it dollar could adversely affect our operations the local market which, in turn, depend on has remained stable at around 5% during We cannot assure you that the future and financial results. The Chilean peso has the macroeconomic and political conditions the last five years. development of the Chilean economy will been subject to large nominal devaluations of the country, our financial situation and not impair our ability to successfully carry in the past and may be subject to significant our operating results could be adversely The Paraguayan guaraní is subject to out our business plan or materially adversely fluctuations in the future. affected by changes in these factors over depreciation and volatility: the exchange affect our business, financial condition or which we have no control. rate of Paraguay is free and floating and the operating results. Banco Central de Paraguay, or Paraguay Economic conditions in Argentina and Central Bank (“BCP”), actively participates high inflation levels Inflation in Chile: Brazil: the situation of the Paraguayan in the exchange market in order to smooth could adversely affect the Chilean economy economy is strongly influenced by the abrupt oscillations. A significant depreciation and have a material adverse effect on our economic situation in Argentina and Brazil. of the local currency could adversely affect financial condition and operating results A deterioration in the economic situation of our financial situation and financial results, if we are unable to increase our prices in these countries could adversely affect our as approximately 25% of our total costs of raw line with inflation. financial condition and operating results. materials and supplies are in U.S. dollars, as well as impact other expenses such as Periods of higher inflation may also slow professional fees and maintenance costs. the growth rate of the Chilean economy, which could lead to reduced demand for our products and decreased sales Additionally, an important part of our financial debt is UF-denominated, and therefore the value – 49 – Risk Factors Relating to the ADRs and Common Stock

Preemptive rights: according to the Ley that we consider appropriate at the time, might have as shareholders of a corporation de Sociedades Anónimas N° 18,046 and and then make a decision as to whether to incorporated in a U.S. jurisdiction. the Reglamento de Sociedades Anónimas file such registration statement. (collectively, the “Chilean Companies Law”), Pursuant to Law N° 19,705, enacted in whenever we issue new shares for cash, we We cannot assure you that any registration December 2000, the controlling shareholders are required to grant preemptive rights to statement would be filed. To the extent of an open stock corporation can only sell holders of our shares (including shares ADR holders are unable to exercise such their controlling shares via a tender offer represented by ADRs), giving them the rights because a registration statement has issued to all shareholders in which the right to purchase a sufficient number of not been filed, the depositary will attempt bidder would have to buy all the offered shares to maintain their existing ownership to sell such holders’ preemptive rights shares up to the percentage determined • Annual Report • Annual 2017 Andina Coca‑Cola percentage. However, we may not be able and distribute the net proceeds thereof if by it, when the price paid is substantially to offer shares to United States holders of a secondary market for such rights exists higher than the market price (that is, when ADRs pursuant to preemptive rights granted and a premium can be recognized over the the price paid was higher than the average to our shareholders in connection with any cost of any such sale. If such rights cannot market price of a period starting 90 days future issuance of shares unless a registration be sold, they will expire and ADR holders before the proposed transaction and ending statement under the U.S. Securities Act of will not realize any value from the grant 30 days before such proposed transaction, 1933, as amended, is effective with respect of such preemptive rights. In any such plus 10%). to such rights and shares, or an exemption case, such holder’s equity interest in the from the registration requirements of the Company would be diluted proportionately. Liquidity and volatility: the Chilean U.S. Securities Act of 1933, as amended, securities markets are substantially smaller, is available. Shareholder’s rights definition: under less liquid and more volatile than major the United States federal securities laws, securities markets in the United States. Under the procedure established by the as a foreign private issuer, we are exempt The lack of liquidity is explained, in part, Central Bank of Chile, the foreign investment from certain rules that apply to domestic to the relatively small size of the Chilean agreement of a Chilean company with United States issuers with equity securities securities markets and may have a material an existing ADR program will become registered under the United States Securities adverse effect on the trading prices of our subject to an amendment (which will also Exchange Act of 1934, as amended, including shares. Because the market for our ADRs be deemed to incorporate all laws and the proxy solicitation rules, the rules depends, in part, on investors’ perception regulations applicable to international requiring disclosure of share ownership by of the value of our underlying shares, this offerings in effect as of the date of the directors, officers and certain shareholders. lack of liquidity for our shares in Chile amendment) that will extend the benefits We are also exempt from certain of the may have a significant effect on the trading of such contract to new shares issued corporate governance requirements of the prices of our ADRs. pursuant to a preemptive rights offering to Sarbanes-Oxley Act of 2002 and the New existing ADR owners and to other persons York Stock Exchange, Inc., including the residing and domiciled outside of Chile that requirements concerning independent exercise preemptive rights, upon request directors. to the Central Bank of Chile. We intend to evaluate at the time of any rights offering Our corporate affairs are governed by the the costs and potential liabilities associated laws of Chile and our estatutos or bylaws, with any such registration statement as well which function not only as our bylaws but as the indirect benefits to us of enabling also as our articles of incorporation. Under United States ADR holders to exercise such laws, our shareholders may have preemptive rights and any other factors fewer or less well-defined rights than they ARGENTINA Main use (m2) Property – 50 – EMBOTELLADORA DEL ATLÁNTICO S.A. Facilities Azul Distribution Centers / Warehouses 600 Third Parties Bahía Blanca Offices / Production of Soft Drinks / Distribution Center / Warehouses 102,708 Own Bahía Blanca Warehouses 6,000 Leased e maintain production plants in each Bahía Blanca Commercial Offices 576 Leased W of the principal population centers Bahía Blanca Real Estate 73150 Own that comprise the franchise territories. In Bariloche Offices / Distribution Centers / Warehouses 1870 Leased addition, we maintain distribution centers and administrative offices in each of the Bialet Masse Real Estate 880 Own franchise territories. The following table Bolivar Warehouses 700 Third Parties sets forth in square meters, our principal Bragado Commercial Offices 42 Leased facilities in each of the franchise territories: Carlos Casares Warehouses 345 Third Parties Report • Annual 2017 Andina Coca‑Cola Carlos Paz Commercial Offices 30 Leased Carmen de Patagones Offices / Distribution Centers / Warehouses 1,600 Leased Chacabuco Offices / Distribution Centers / Warehouses 25,798 Own Chivilcoy Distribution Centers / Warehouses 1,350 Third Parties Comodoro Rivadavia Offices / Distribution Centers / Warehouses 7,500 Leased Concepcion del Uruguay Commercial Offices 118 Leased Concordia Offices / Distribution Centers / Warehouses 1,289 Leased Córdoba Offices / Distribution Centers / Warehouses 959,585 Own Córdoba (H.Primo) Offices / Distribution Centers / Warehouses 1,173 Leased Córdoba (San Isidro) Offices / Distribution Centers / Warehouses 8,880 Own Córdoba Warehouses s/d Leased Córdoba Warehouses s/d Leased Córdoba Warehouses 6200 Leased Coronel Pringles Warehouses 675 Third Parties Coronel Suarez Offices / Distribution Centers / Warehouses 1,000 Leased Embalse Warehouses 600 Third Parties General Pico Offices / Distribution Centers / Warehouses 15,525 Own General Roca Distribution Centers / Warehouses 2,548 Third Parties Gualeguaychu Offices / Distribution Centers / Warehouses 1,471 Leased Junin (Mendoza) Commercial Offices 100 Leased Mendoza Offices / Distribution Centers / Warehouses 36,452 Own Monte Hermoso Terreno 300 Own Neuquén Offices / Distribution Centers / Warehouses 10,157 Own Olavarria Offices / Distribution Centers / Warehouses 1,974 Leased Paraná Commercial Offices 318 Leased Pehuajo Offices / Distribution Centers / Warehouses 1,060 Leased

1. Encumbrance free properties ARGENTINA Main use (m2) Property – 51 – Pergamino Oficinas / Cross Docking 15,700 Own Facilities Puerto Madryn Commercial Offices 115 Leased Rafaela Warehouses 1,000 Third Parties Rio Gallegos Distribution Centers / Warehouses 2,491 Leased Rio Grande Offices / Distribution Centers / Warehouses 4,518 Leased Río IV Vivienda 1,914 Own Río IV Pasillo Privado 5,170 Own Río IV Cross Docking 7,482 Own Río IV Commercial Offices 93 Leased Rio Tercero Warehouses 600 Third Parties Rivadavia (Mendoza) Warehouses 782 Own Report • Annual 2017 Andina Coca‑Cola Rosario Offices / Distribution Centers / Warehouses 27,814 Own San Francisco Commercial Offices 63 Leased San Francisco Cross Docking 800 Leased San Juan Offices / Distribution Centers / Warehouses 48,036 Own San Luis Offices / Distribution Centers / Warehouses 5,205 Own San Martin de los Andes Offices / Distribution Centers / Warehouses 70 Third Parties San Nicolas Cross Docking 1,320 Leased San Nicolas Commercial Offices 30 Leased San Rafael Commercial Offices 58 Leased Santa Fe Commercial Offices 238 Leased Santa Rosa Distribution Centers / Warehouses 1,100 Third Parties Santo Tomé Offices / Distribution Centers / Warehouses 88,309 Own Trelew Offices / Distribution Centers / Warehouses 51,000 Own Trelew Warehouses 1,500 Leased Trenque Lauquen Cross Docking s/d Leased Tres Arroyos Offices / Distribution Centers / Warehouses 1,548 Leased Ushuaia Offices / Distribution Centers / Warehouses 1,360 Leased Ushuaia Commercial Offices 94 Leased Venado Tuerto Offices / Distribution Centers / Warehouses 2,449 Leased Villa Maria Commercial Offices 125 Leased Villa Maria Cross Docking 1,200 Leased Villa Mercedes Commercial Offices 70 Leased Villa Mercedes Cross Docking 600 Leased ANDINA EMPAQUES ARGENTINA S.A. Buenos Aires Production of PET bottles, Preforms and Caps 27,043 Own Buenos Aires Warehouses 1,041 Leased

1. Encumbrance free properties BRAZIL Main use (m2) Property – 52 – Facilities RIO DE JANEIRO REFRESCOS LTDA. Jacarepaguá Offices / Production of Soft Drinks / Distribution Center / Warehouses 249,470 Own Duque de Caxias Land to build a Plant 2,243,953 Own Nova Iguaçu Distribution Centers / Warehouses 82,618 Own Bangu Distribution Centers 44,389 Own Campos Distribution Centers 36,083 Own Cabo Frio Distribution Centers 1,985 Own

São Pedro da Aldeia 1 Distribution Centers 10,139 Grant Report • Annual 2017 Andina Coca‑Cola Itaperuna Cross Docking 2,500 Leased Caju 1 Distribution Centers 4,866 Own Caju 2 Distribution Centers 8,058 Own Caju 3 Parking lot 7,400 Own Vitória (Cariacica) Distribution Centers 93,320 Own Cachoeiro do Itapemirim Cross Docking 8,000 Leased Linhares Cross Docking 1,500 Leased Ribeirão Preto Offices / Production of Soft Drinks / Distribution Center / Warehouses 238,096 Own Ribeirão Preto Real Estate 279,557 Own Franca Distribution Centers 32,500 Own Mococa Distribution Centers 33,669 Leased Araraquara Distribution Centers 11,658 Leased São Paulo Real Estate 69 Own São João da Boa Vista, Araraquara,São Paulo Cross Docking 20,773 Own São Pedro da Aldeia 2 Parking lot 6,400 License Itaipu Commercial Offices 750 Leased Nova Friburgo Commercial Offices 350 Leased

1. Encumbrance free properties CHILE Main use (m2) Property – 53 – EMBOTELLADORA ANDINA S.A. Facilities Renca Offices / Production of Soft Drinks / Distribution Center / Warehouses 380,833 Own Carlos Valdovinos Distribution Centers / Warehouses 106,820 Own Puente Alto Distribution Centers / Warehouses 68,682 Own Maipú Distribution Centers / Warehouses 45,833 Own Rancagua Distribution Centers / Warehouses 25,920 Own San Antonio Distribution Centers / Warehouses 19,809 Own Antofagasta Offices / Production of Soft Drinks / Distribution Center / Warehouses 34,729 Own Calama Distribution Centers / Warehouses 10,700 Own

Taltal Distribution Centers / Warehouses 975 Own Report • Annual 2017 Andina Coca‑Cola Tocopilla Distribution Centers / Warehouses 562 Own Coquimbo Offices / Production of Soft Drinks / Distribution Center / Warehouses 31,383 Own Copiapó Distribution Centers / Warehouses 26,800 Own Ovalle Distribution Centers / Warehouses 6,223 Own Vallenar Distribution Centers / Warehouses 5,000 Own Illapel Distribution Centers / Warehouses s/d Leased Punta Arenas Offices / Production of Soft Drinks / Distribution Center / Warehouses 109,517 Own Coyhaique Distribution Centers / Warehouses 5,093 Own Puerto Natales Distribution Centers / Warehouses 850 Leased VITAL JUGOS S.A. Renca Offices / Production of Juices 40,000 Own VITAL AGUAS S.A. Rengo Offices / Production of Waters 544,600 Own ENVASES CENTRAL S.A. Renca Offices / Production of Soft Drinks 50,100 Own

PARAGUAY Main use (m2) Property

PARAGUAY REFRESCOS S.A. San Lorenzo Offices / Production of Soft Drinks / Warehouses 275,292 Own Coronel Oviedo Offices / Warehouses 32,911 Own Encarnación Offices / Warehouses 12,744 Own Ciudad del Este Offices / Warehouses 14,620 Own

1. Encumbrance free properties Subsidiaries and Equity Investees Subsidiaries and Equity Investees – 54 – Argentina Brazil EMBOTELLADORA ANDINA EMPAQUES ALIMENTOS RIO DE JANEIRO KAIK LEÃO ALIMENTOS SOROCABA TROP FRUTAS DO DEL ATLÁNTICO S.A.º ARGENTINA S.A.º DE SOJA S.A. REFRESCOS LTDA. PARTICIPAÇÕES LTDA. E BEBIDAS LTDA. REFRESCOS LTDA. BRASIL LTDA.

Address Address Address Address Address Address Address Address Ruta Nacional 19, Austria 650 - Gral. Pacheco - 25 de Mayo 555, Piso 1, Rúa André Rocha 2299, Av. Maria Coelho de Aguiar Rua Rockfeller 1361, Rod.Raposo Tavares, Km 104, Avenida PRF Samuel Batista Buenos Aires Bairro Prado Velho, Curitiba, Km 3,7, Córdoba Partido de Tigre. Taquara, Jacarepaguá, 215, bloco A, 1° Andar, Paraná. Jardim Jaraguá, Sorocaba, Cruz, 9853, 115.591.0060 M2, Rio de Janeiro. Jardim São Luis, São Paulo. São Paulo. CEP 29909-900. Linhares. Argentine Tax Id N° Argentine Tax Id N° Argentine Tax Id N° Brazilian Tax Id N° Espirito Santo. 30-52913594/3 30-71213488-3 33-715-23028-9 Brazilian Tax Id N° Brazilian Tax Id N° 72.114.994/0001-88 Brazilian Tax Id N° 00.074.569/0001-00 40.441.792/0001-54 45.913.696/0001-85 Brazilian Tax Id N° Telephone Telephone Telephone Telephone 07.757.005/0001-02 (54-351) 496 8888 (54-11) 4715 8000 (54-11) 5196 8300 Telephone Telephone (55-11) 3809 5000 Telephone (55-21) 2429 1779 (55-11) 2102 5563 (55-15) 3229 9930 Shareholders' Equity Report • Annual 2017 Andina Coca‑Cola Shareholders' Equity Shareholders' Equity Shareholders' Equity Shareholders' Equity (at 12/31/17) (at 12/31/17) (at 12/31/17) (at 12/31/17) Shareholders' Equity Shareholders' Equity (at 12/31/17) Shareholders' Equity Th$ 73,055,641 Th$ 3,782,900 Th$ 2,472,553 Th$ 19,471,970 (at 12/31/17) (at 12/31/17) Th$ 212,339,742 (at 12/31/17) Th$ 119,168,159 Th$ 186 Th$ 10,876,206 % the investment % the investment % the investment % the investment % the investment represents in the Parent represents in the Parent represents in the Parent represents in the Parent % the investment % the investment represents in the Parent % the investment Company's assets Company's assets Company's assets Company's assets represents in the Parent represents in the Parent Company's assets represents in the Parent 0.30 3.43 0.45 0.40 Company's assets Company's assets 1.05 Company's assets 12.68 0.06 1.09 % that the Parent Company % that the Parent Company % that the Parent Company % that the Parent Company % that the Parent Company holds in the capital of the holds in the capital of the holds in the capital of the holds in the capital of the holds in the capital of the % that the Parent Company % that the Parent Company % that the Parent Company subsidiary or equity investee* Ω subsidiary or equity investee* subsidiary or equity investee* subsidiary or equity investee* subsidiary or equity investee holds in the capital of the holds in the capital of the Directly - holds in the capital of the Directly - Directly 0.92 Directly - Directly - subsidiary or equity investee* subsidiary or equity investee* Indirectly 8.82 subsidiary or equity investee* Indirectly: 7.,52 Indirectly 99.07 Indirectly 99.98 Indirectly: 12.96 Directly - Directly - Directly - Indirectly 99.99 Indirectly 11.32 Corporate Purpose Indirectly 40 Corporate Purpose Corporate Purpose Corporate Purpose Corporate Purpose Manufacture and Manufacture, commercilaize On its account, or that of third parties Manufacture, bottle, Design, produce and or associated with third parties, in this Corporate Purpose Corporate Purpose commercialize food and Corporate Purpose and export natural fruit pulp distribute and commercialize commercialize plastic Republic or abroad, perform the following Manufacture and Invest in other companies beverages in general, and Manufacture and and coconut water. activities: manufacture, marketing, import, beverage concentrate. Invest non-alcoholic beverages. products, mainly export, processing, fractionation, packaging, commercialize beverages with own resources. commercialize food and distribution of food products for human in other companies. Manufacture, bottle and packaging. consumption and beverages in general and in general, powdered juices beverages in general, and Commercial Relationship their raw materials and respective related sell any other beverage and products and by-products, in their different and other related semi- Commercial Relationship Commercial Relationship beverage concentrate. Invest Produces products for derivatives. Commercial Relationship stages and processes. processed products. - Produces sensible products for in other companies. Coca‑Cola bottlers in Brazil. Supplier of plastic bottles Coca‑Cola bottlers in Brazil. Commercial Relationship and preforms. Commercial Relationship Commercial Relationship Board of Directors / Commercial Relationship Board of Directors / Coca‑Cola bottler in Produces products based on Coca‑Cola bottler in Brazil. Management Council Board of Directors / Coca‑Cola bottler in Brazil. Management Council Argentina. Board of Directors / soy for Coca‑Cola bottlers in Luiz Eduardo Tarquinio Management Council Ruben Lahyr Schneider Filho Management Council Argentina. Board of Directors / Carlos Eduardo Correa Sandor Hagen Board of Directors / Axel de Meeus D'Argenteuil Board of Directors / Gonzalo Manuel Soto³ Management Council Ricardo Vontobel Flavio Camelier Management Council Board of Directors / Emerson Vontobel Management Council Fabián Castelli2 Management Council Renato Barbosa2 Francisco Miguel Alarcón Renato Barbosa2 Gonzalo Manuel Soto³ Jaime Cohen1 Fernando Fragata2 Renato Barbosa2 Henrique Braun Cristiano Biagi Gerardo Beramendi Maria Sol Jares Alexander Fernandes Fabián Castelli2 Laurence Paul Wiener (A) Roberta Valenca Canovas (A) Rodrigo Klee2 Giordano Biagi Jose Maria Cagliolo Francisco Jeldres (A) Delgado Jaime Cohen1 Roberto Chavez Omar Kiriadre (A) David Parkes2 Renato Barbosa2 Miguel Ángel Peirano1 Laurence Paul Wiener (A) General Manager Guillermo Aponte Jorge Luis Lopez (A) Antonio Rui de Lima Barreto Cláudio Sergio Rodrigues Gonzalez Ruben Sergio Marcelo Izzo Daniel Caridi Juan Felix Alba Loaiza Coronel (A) Coelho2 Ricardo Vontobel Luiz Lacerda Biagi Fabián Castelli 2 Fernando Ramos General Manager Javier Sanchez Meneghetti (A) Ian Craig Fabián Castelli2 Carranza Teodoro Federico General Manager Ruben Lahyr Schneider Filho General Manager David Lee Kundig (A) Mercedes Rodriguez Esteban Eduardo Renato Barbosa2 Axel de Meeus D'Argenteuil Cristiano Biagi Canedo (A) Mele (A) General Manager General Manager Axel de Meeus José Marquina Subsidiaries and Equity Investees Chile – 55 – SRSA UBI 3 EMBOTELLADORA VITAL JUGOS S.A.º VITAL AGUAS S.A.º COCA‑COLA DEL VALLE TRANSPORTES ANDINA TRANSPORTES PARTICIPAÇÕES LTDA. PARTICIPAÇÕES LTDA. ANDINA CHILE S.A.º NEW VENTURES S.A.º REFRESCOS LTDA.ººº POLAR S.A.º Address Address Address Address Address Av. Américo Vespucio 1651, Camino a la Vital 1001, Address Address Address Rua Antonio Aparecido Avenida Prefeito Olavo Av. Miraflores 9153, Renca, Renca, Santiago Comuna de Rengo Av. Miraflores 8755, Renca, Av. Miraflores 9153, piso 4, Av. Miraflores 9153, piso 4, Ferraz, 795, Sala 01, Jardim Gomes de Oliveira nº 3.701, Santiago Santiago Renca , Santiago Renca , Santiago Itanguá, Sorocaba, São Paulo. Sala Repensar, Jardim Chilean Tax Id N° Chilean Tax Id N° Mariosa, Pouso Alegre, Minas Chilean Tax Id N° 93.899.000-K 76.389.720-6 Chilean Tax Id N° Chilean Tax Id N° Chilean Tax Id N° Brazilian Tax Id N° Gerais. 76.070.406-7 76.572.588-7 78.861.790-9 96.928.520-7 10.359.485/0001-68 Telephone Telephone Brazilian Tax Id N° Telephone (56-2) 2620 4100 (72) 512206- 680016 Shareholders' Equity Telephone Telephone Telephone 27.158.888/0001-41 (56-2) 2611 5838 (at 12/31/17) (56-2) 2611 5838 (56-2) 2611 5838 (55-15) 3229 9906 Shareholders' Equity Shareholders' Equity Th$ 44,310,000 Telephone Shareholders' Equity (at 12/31/17) (at 12/31/17) Shareholders' Equity Shareholders' Equity Shareholders' Equity (55-21) 2559.1032 (at 12/31/17) Th$ 20,675,167 Th$ 4,331,154 % the investment (at 12/31/17) (at 12/31/17) Report • Annual 2017 Andina Coca‑Cola (at 12/31/17) Th$ 36,569,067 represents in the Parent Th$ 12,620,628 Th$ 1,619,315 Th$ 3,717 Shareholders' Equity % the investment % the investment Company's assets (at 12/31/17) % the investment represents in the Parent represents in the Parent 0.72 % the investment % the investment % the investment Th$ 71,153,656 represents in the Parent Company's assets Company's assets represents in the Parent represents in the Parent represents in the Parent Company's assets 0.81 0.2 % that the Parent Company Company's assets Company's assets Company's assets % the investment 1.62 holds in the capital of the 0.45 0.15 0.01 represents in the Parent % that the Parent Company % that the Parent Company subsidiary or equity investee* Company's assets % that the Parent Company holds in the capital of the holds in the capital of the Directly 35 % that the Parent Company % that the Parent Company % that the Parent Company 0.18 holds in the capital of the subsidiary or equity investee* subsidiary or equity investee* Indirectly - holds in the capital of the holds in the capital of the holds in the capital of the subsidiary or equity investee* Directly 15.00 Directly 66.5 subsidiary or equity investee* subsidiary or equity investee* subsidiary or equity investee* % that the Parent Company Directly 99.99995 Indirectly 50.00 Indirectly - Corporate Purpose Directly 99.9959 Directly 99.99 Directly - holds in the capital of the Indirectly 0.00005 Manufacture, distribute and Indirectly 0.0041 Indirectly 0.01 Indirectly 40 subsidiary or equity investeeΩ Corporate Purpose Corporate Purpose commercialize all kinds of Directly - Corporate Purpose Manufacture, distribute and Manufacture, distribute and juices, waters and beverages Corporate Purpose Corporate Purpose Corporate Purpose Indirectly 8.50 Manufacture, bottle, commercialize all kinds of commercialize all kinds of in general. Provide administration Freight transportation in Purchase and sale of real distribute and commercialize food products, juices and waters and beverages in services and management of general in the beverage estate investments and Corporate Purpose non-alcoholic beverages. beverages. general. Commercial Relationship domestic and foreign ground industry and other processed property management. Invest in other companies Produces mineral water and transportation. goods. with own resources. Commercial Relationship Commercial Relationship Commercial Relationship juices for Coca‑Cola bottlers Commercial Relationship Purchase and sale of real Leasing of productive Produces juices for Produces mineral water for in Chile. Commercial Relationship Commercial Relationship Business supporting company. estate investments and infrastructure. Coca‑Cola bottlers in Chile. Coca‑Cola bottlers in Chile. Provides ground Provides ground property management. Board of Directors / transportation services. transportation services. Board of Directors / Board of Directors / Board of Directors / Board of Directors / Management Council Management Council Commercial Relationship Management Council Management Council Management Council Miguel Ángel Alejandro Board of Directors / Board of Directors / Renato Barbosa2 Produces products based on Miguel Ángel Peirano2 José Luis Solórzano2 José Luis Solórzano2 Peirano2 Zalaquett2 (A) Management Council Management Council Cristiano Biagi soy for Coca‑Cola bottlers Andrés Wainer2 Jaime Cohen2 Jaime Cohen2 José Luis Rodolfo Peña2 (A) No Aplica José Luis Solórzano2 Jaime Cohen2 Solórzano2 Matías Mackenna (A) Giordano Biagi in Brazil. Cristián Hohlberg José Domingo Jaramillo Sebastian Tagle2 Juan Paulo Rodolfo Peña2 Miguel Ángel Peirano1 José María Sánchez2 José María Sánchez2 Cristián Hohlberg Valdés (A) Alejandro Zalaquett2 Cláudio Sergio Rodrigues Board of Directors / General Manager Carlos Gálvez2 (A) Carlos Gálvez2 (A) José Domingo Mercedes Luiz Lacerda Biagi Management Council José Luis Solórzano2 José Domingo Jaramillo (A) Matias Mackenna (A) Jaramillo Rodríguez (A) General Manager Joao Santos Maria Sol Jares (A) Paulo Mendes Andrés Wainer2 (A) Andrés Wainer2 (A) Roberta Cabral Daniel Vercelli (A) Alejandro Vargas2 General Manager de Oliveira Júnior Dino Troni Francisco Jeldres (A) Cristiano Biagi Neuri Amabile Firgotto Pereira General Manager General Manager Gerardo Omar Carlos Rodrigo Mattos Assunção Alberto Moreno Alberto Moreno Beramendi Kiriadre (A) Roberto Chávez Tomás Vedoya2 (A)

General Manager Fernando Jaña SERVICIOS ENVASES CMF S.A.º ENVASES CENTRAL S.A.º ANDINA BOTTLING ANDINA BOTTLING ANDINA INVERSIONES INVERSIONES LOS ANDES RED DE TRANSPORTES – 56 – MULTIVENDING LTDA.ººº INVESTMENTS S.A.º INVESTMENTS DOS S.A.º SOCIETARIAS S.A.º LTDA.ººº COMERCIALES LTDA.ººº Address Address Address La Martina 0390, Pudahuel, Av. Miraflores 8755, Renca, Address Address Address Address Address Av. Miraflores 9153, piso 4, Santiago Santiago Av. Miraflores 9153, piso 7, Av. Miraflores 9153, piso 7, Av. Miraflores 9153, piso 7, Av. Miraflores 9153, piso 7, Av. Miraflores 9153, piso 4 Renca , Santiago Renca, Santiago Renca, Santiago Renca, Santiago Renca, Santiago Renca , Santiago Chilean Tax Id N° Chilean Tax Id N° Chilean Tax Id N° 86.881.400-4 96.705.990-0 Chilean Tax Id N° Chilean Tax Id N° Chilean Tax Id N° Chilean Tax Id N° Chilean Tax Id N° 78.536.950-5 96.842.970-1 96.972.760-9 96.836.750-1 96.971.280-6 76.276.604-3 Telephone Telephone Telephone (56-2) 2338 0520 (56-2) 2599 9300 Telephone Telephone Telephone Telephone Telephone (56-2) 2611 5838 (56-2) 2338 0520 (56-2) 2338 0520 (56-2) 2338 0520 (56-2) 2338 0520 (56-2) 2611 5838 Shareholders' Equity Shareholders' Equity Shareholders' Equity (at 12/31/17) (at 12/31/17) Shareholders' Equity Shareholders' Equity Shareholders' Equity Shareholders' Equity Shareholders' Equity (at 12/31/17) Th$ 32,981,986 Th$ 7,562,354 (at 12/31/17) (at 12/31/17) (at 12/31/17) (at 12/31/17) (at 12/31/17)

Th$ 862,248 Th$ 234,490,447 Th$ 8,513,734 Th$ 30,082,325 Th$ 77,237,135 Th$ 2,200,313 Report • Annual 2017 Andina Coca‑Cola % the investment % the investment % the investment represents in the Parent represents in the Parent % the investment % the investment % the investment % the investment % the investment represents in the Parent Company's assets Company's assets represents in the Parent represents in the Parent represents in the Parent represents in the Parent represents in the Parent Company's assets 0.89 0.38 Company's assets Company's assets Company's assets Company's assets Company's assets 0.04 18.36 7.13 1.58 12.44 0.07 % that the Parent Company % that the Parent Company % that the Parent Company holds in the capital of the holds in the capital of the % that the Parent Company % that the Parent Company % that the Parent Company % that the Parent Company % that the Parent Company holds in the capital of the subsidiary or equity investee* subsidiary or equity investee* holds in the capital of the holds in the capital of the holds in the capital of the holds in the capital of the holds in the capital of the subsidiary or equity investee* Directly - Directly 59.27 subsidiary or equity investee* subsidiary or equity investee* subsidiary or equity investee* subsidiary or equity investee* subsidiary or equity investee* Directly 99.90 Indirectly 50.00 Indirectly - Directly 99.90 Directly 99.90 Directly 99.9998 Directly 99.9981 Directly 99.85 Indirectly 0.09 Indirectly 0.10 Indirectly 0.10 Indirectly 0.0001 Indirectly 0.000019 Indirectly 0.15 Corporate Purpose Corporate Purpose Corporate Purpose Manufacture and sale of Manufacture and packaging Corporate Purpose Corporate Purpose Corporate Purpose Corporate Purpose Corporate Purpose Commercialize products plastic products and bottling of all kinds of beverages, Manufacture, bottle and Carryout exclusively foreign Invest in all types of Invest in all kinds of goods and Freight transportation in through equipment and services and beverage and commercialize all kinds commercialize beverages permanent investments or companies and commercialize real estate for its own account general in the beverage vending machines. containers. of packaging. and food in general. Invest in lease all kinds of real estate. food products in general. or on behalf of third parties. industry and other processed other companies. goods. Commercial Relationship Commercial Relationship Commercial Relationship Commercial Relationship Commercial Relationship Commercial Relationship Provides product sales Supplier of plastic bottles, Produces cans and some Commercial Relationship Investment vehicle Investment vehicle Investment vehicle Commercial Relationship through vending machines. preforms and caps. small formats for Coca‑Cola Investment vehicle Provides services of ground bottlers in Chile. Board of Directors / Board of Directors / Board of Directors / transportation and products Board of Directors / Board of Directors / Board of Directors / Management Council Management Council Management Council comercialization Management Council Management Council Board of Directors / Management Council Miguel Ángel Peirano2 Miguel Ángel Peirano2 No Aplica No Aplica Salvador Said1 Management Council Miguel Ángel Peirano2 Andrés Wainer2 Andrés Wainer2 Board of Directors / Andrés Vicuña Diego González Andrés Wainer2 Jaime Cohen2 Jaime Cohen2 Management Council Cristián Hohlberg José Luis Solórzano2 Jaime Cohen2 Tomás Vedoya2 (A) Tomás Vedoya2 (A) No Aplica Matías Mackenna José María Sánchez2 Tomás Vedoya2 (A) Gonzalo Muñoz2 (A) Gonzalo Muñoz2 (A) Andrés Wainer2 Alberto Moreno Gonzalo Muñoz2 (A) Carlos Gálvez2 (A) Carlos Gálvez2 (A) Tomás Vedoya2 Cristián Hohlberg Carlos Gálvez2 (A) José Jaramillo General Manager General Manager General Manager Diana Rosas (A) General Manager Miguel Ángel Peirano2 Miguel Ángel Peirano2 Christian Larraín Carlos Gálvez2 (A) Miguel Ángel Peirano2 Jaime Cohen2 (A) Andrés Wainer2 (A) Matías Mackenna (A) Juan Paulo Valdés (A)

General Manager Patricio Delpiano Subsidiaries and Equity Investees Subsidiaries and Equity Investees – 57 – Paraguay British Virgin Islands PARAGUAY ABISA ACONCAGUA REFRESCOS S.A.º CORP. INVESTING LTD.

Address Address Address Acceso Sur, Ruta Ñemby Vanterpool Plaza, 2°Piso, Vanterpool Plaza, Wickhams Km 3,5 - Barcequillo -San Wickhams Cay 1, Road Town Cay 1, P.O. Box 873 Road Town, Lorenzo, Asunción Tortola, British Virgin Island Tortola, British Virgin Island NOTES ARGENTINA Paraguayan Tax Id N° BVI Registration N° BVI Registration N° °Non-traded corporation 80.003.400-7 512410 / RUT 59.144.140-K 569101 * Ownership interest has not had variations during the last year 1 Embotelladora Andina S.A. officer Telephone Telephone Telephone

2 Embotelladora del Atlántico S.A. officer Report • Annual 2017 Andina Coca‑Cola (595) 21 959 1000 (1-284) 494 5959 (1-284) 494 5959 3 External Counsel Shareholders' Equity Shareholders' Equity Shareholders' Equity (A) Alternate (at 12/31/17) (at 12/31/17) (at 12/31/17) Th$ 9,904,604 Th$ 12,594,313 Th$ 523,599 NOTES BRAZIL % the investment % the investment % the investment * Ownership interest has not had variations during the last year represents in the Parent represents in the Parent represents in the Parent Ω Company incorporated in 2017 Company's assets Company's assets Company's assets 1 Embotelladora Andina S.A. officer 1.08 14.96 0.03 2 Rio de Janiero Refrescos Ltda. officer

% that the Parent Company % that the Parent Company % that the Parent Company holds in the capital of the holds in the capital of the holds in the capital of the NOTES CHILE subsidiary or equity investee* subsidiary or equity investee* subsidiary or equity investee* * Ownership interest has not had variations during the last year Directly 0.076 Directly - Directly 0.70 ° Non-traded corporation Indirectly 97.75 Indirectly 100 Indirectly 99.3 °°° Limited responsibility companies in which management corresponds to the partner Embotelladora Andina S.A. through Corporate Purpose Corporate Purpose Corporate Purpose its legal or specially appointed representatives Manufacture, distribute and Invest in financial Invest in financial 1 Director and Member of the Controlling Group of commercialize carbonated instruments, for its own instruments, for its own Embotelladora Andina S.A. and non-carbonated non- account or on behalf of third account or on behalf of third 2 Embotelladora Andina S.A. officer alcoholic beverages. parties. parties. (A) Alternate

Commercial Relationship Commercial Relationship Commercial Relationship Coca‑Cola bottler in Investment company. Investment company. NOTES PARAGUAY Paraguay. °Non-traded corporation Board of Directors / Board of Directors / * Ownership interest has not had variations during the last year Board of Directors / Management Council Management Council 1 Embotelladora Andina S.A. officer Management Council Miguel Ángel Peirano1 Jaime Cohen1 2 Paraguay Refrescos S.A. officer Andrés Wainer1 Andrés Wainer1 Andrés Wainer1 (A) Alternate Francisco Sanfurgo2 Jaime Cohen1 Miguel Angel Peirano1 Jaime Cohen1 Tomás Vedoya1 Gonzalo Muñoz1 NOTES BRITISH VIRGIN ISLANDS * Ownership interest has not had variations during the last year General Manager 1 Embotelladora Andina S.A. officer Francisco Sanfurgo2 – 58 – Controlling Group The following group of individuals and corporations controls Embotelladora Andina S.A. (“Andina”):

(g) Jaime, Gonzalo, Javier, Bárbara, Marisol and Cristina Said 1 2 Handal, each are holders of 0.00006175% of share capital; and Controlling Group: Inversiones SH Seis Limitada (“SH6”), Shareholders or partners of the companies that are part of the Inversiones Cabildo SpA (“Cabildo”), Inversiones Chucao Controlling Group: (h) Inmobiliaria Pro Seis Limitada, R.U.T. N° 76.268.900-6, • Annual Report • Annual 2017 Andina Coca‑Cola Limitada, today known as Inversiones Lleuque Limitada holder of 14.7581% of share capital. Jaime, Gonzalo, Javier, (“Lleuque”), Inversiones Nueva Delta S.A. (“Nueva Delta”), 1. SH6: Inversiones SH Seis Limitada, R.U.T.* N° 76.273.760-4. Bárbara, Marisol and Cristina Said Handal indirectly own this Inversiones Nueva Delta Dos S.A. (“Nueva Delta Dos”), This company's direct and indirect ownership is held by: company in equal parts each. Inversiones Las Gaviotas Dos Limitada (today Inversiones Playa Amarilla SpA “Playa Amarilla”) , Inversiones Playa (a) Inmobiliaria e Inversiones Punta Larga Limitada, R.U.T. 2. Cabildo: Inversiones Cabildo SpA, R.U.T. N° 76.062.133-1. Negra Dos Limitada, today known as Inversiones Playa N° 96.580.490-0, holder of 14.2069% of share capital. Jaime This company's direct and indirect ownership is held by: Negra SpA (“Playa Negra”) Inversiones Don Alfonso Dos Said Handal, C.N.I.** N° 4.047.015-8 directly owns 99.92% Limitada, today known as Don Alfonso Limitada (“Don of this company; (a) Inversiones Delfín Uno S.A., R.U.T. N° 76.005.604-9, Alfonso”), Inversiones El Campanario Dos Limitada, holder of 2.13% of share capital. Mrs. Isabel Margarita Somavía today known as Inversiones El Campanario Limitada (b) Inversiones Bullish Limitada, R.U.T. N° 76.167.252-5, Dittborn, C.N.I. N° 3.221.015-5 has a 99% ownership interest (“Campanario”), Inversiones Los Robles Dos Limitada, today holder of 14.2069% of share capital. Gonzalo Said Handal, in this company; known as Inversiones Los Robles Limitada (“Los Robles”) C.N.I. N° 6.555.478-K indirectly owns 97.2873% of this and Inversiones Las Viñas Dos Limitada, today known as company; (b) Inversiones Delfín Dos S.A., R.U.T. N° 76.005.591-3, Inversiones Las Niñas Dos SpA (“Las Niñas Dos”). holder of 2.13% of share capital. Mr. José Said Saffie, C.N.I. (c) Inversiones Berklee Limitada, R.U.T. N° 77.077.030-0, N° 2.305.902-9 has a 99% ownership interest in this Under the Agreement, SH6 holds 50,001,664 Series A holder of 14.2069% of share capital. Javier Said Handal, company; shares of Andina, Cabildo holds 50,001,664 Series A shares C.N.I. N° 6.384.873-5 directly owns 99% of this company; of Andina, Lleuque holds 50,001,644 Series A shares of (c) Inversiones Delfín Tres S.A., R.U.T. N° 76.005.585-9, holder Andina, Nueva Delta holds 46,426,645 Series A shares of (d) Inversiones Harvest Limitada, R.U.T. N° 77.077.250-8, of 38.30% of share capital. Mr. Salvador Said Somavía, C.N.I. Andina, and Nueva Delta Dos holds 3,574,999 Series A holder of 14.2069% of share capital. Bárbara Said Handal, N° 6.379.626-3 has a 99% ownership interest in this company; shares of Andina. Playa Amarilla holds 13,513,594 Series A C.N.I. N° 4.708.824-0 directly owns 69.66% of this company; shares of Andina, Playa Negra holds 515,939 Series A shares (d) Inversiones Delfín Cuatro S.A., R.U.T. N° 76.005.582-4, of Andina, and Don Alfonso, Campanario, Los Robles and Las (e) Inversiones Oberon Limitada, R.U.T. N° 76.126.745-0, holder of 19.15% of share capital. Mrs. Isabel Said Somavía, Niñas Dos each hold 9,788,363 Series A shares of Andina. holder of 14.2069% of share capital. Marisol Said Handal, C.N.I. N° 6.379.627-1 has a 99% ownership interest in this C.N.I. N° 6.384.872-7 indirectly owns 90.0885% of this company; The persons and representatives for management listed below company; are the final controllers of the aforementioned corporations. (e) Inversiones Delfín Cinco S.A., R.U.T. N° 76.005.503-4, holder (f) Inversiones Rinascente Limitada, R.U.T. N° 77.077.070-K, of 19.15% of share capital. Mrs. Constanza Said Somavía, C.N.I. holder of 14.2069% of share capital. Cristina Said Handal; C.N.I. N° 6.379.628-K has a 99% ownership interest in this company; N° 5.522.896-5 directly owns 94.0580% of this company; (f) Inversiones Delfín Seis S.A., R.U.T. N° 76.005.502-6, holder of 19.15% of share capital. Mrs. Loreto Said Somavía, C.N.I. N° 6.379.629-8 has a 99% ownership interest in this company; – 59 –

(g) Ledimor Financial Corp., R.U.T. N° 59.038.220-5, Sofía S.A., R.U.T. N° 76.366.690-5. This company's direct 8. Don Alfonso: Inversiones Don Alfonso Limitada, R.U.T. holder of 2.21% of share capital. The final controllers of this and indirect ownership is held by: N° 76.273.918-6, 73.40437% owned by María de la Luz company are Mr. José Said Saffie and Mrs. Isabel Margarita Chadwick Hurtado and 0,05062% owned by Carlos Eugenio Somavía Dittborn, each holding 30% of its shares, Mr. (a) Mr. José Antonio Garcés Silva (senior), C.N.I. Lavín García-Huidobro, and 26.54501% owned by Inversiones Salvador Said Somavía holding 16% of its shares. Isabel Said N° 3.984.154-1 holds 7.01%, who also maintains political FLF Limitada (99.5% controlled by Francisco José Lavín Somavía, Mrs. Constanza Said Somavía, and Mrs. Loreto Said rights through a special series of shares in the parent Chadwick) whose final controller (as representative for Somavía, each holding 8% of share capital. company; management) is Mrs. María de la Luz Chadwick Hurtado. • Annual Report • Annual 2017 Andina Coca‑Cola (h) Opirel S.A., R.U.T. N° 59.002.280-2, holder of 0.87% (b) Mrs. María Teresa Silva Silva, C.N.I. N° 3.717.514-5 holds 9. Campanario: Inversiones El Campanario Limitada, R.U.T. of share capital. The final controllers of this company are 1.34%; N° 76.273.959-3, 86.225418% owned by María Soledad Mr. José Said Saffie and Mrs. Isabel Margarita Somavía Chadwick Claro, 6.888107% owned by Inversiones Melitta Dittborn, each holding 30% of its shares, Mr. Salvador Said (c) Mrs. María Teresa Garcés Silva, C.N.I. N° 7.032.690-6 Limitada (99% controlled by Josefina Dittborn Chadwick) Somavía holding 16% of its shares. Isabel Said Somavía, Mrs. holds 18.33%; and 6.886475% owned by Inversiones DV Limitada (99% Constanza Said Somavía, and Mrs. Loreto Said Somavía each controlled by Julio Dittborn Chadwick), whose final controller holding 8% of share capital, and (d) Mrs. María Paz Garcés Silva, C.N.I. N° 7.032.689-2 holds (as representative for management) is Mrs. María Soledad 18.33%; Chadwick Claro. (i) Donaler Investment Corp., R.U.T. N° 59.070.760-0, holder of 0.37% of share capital. The final controllers of this (e) Mr. José Antonio Garcés Silva (junior), C.N.I. 10. Los Robles: Inversiones Los Robles Limitada, R.U.T. company are Mr. José Said Saffie and Mrs. Isabel Margarita N° 8.745.864-4 holds 18.33%; N° 76.273.886-4, 78.740150% owned by María Carolina Somavía Dittborn, each holding 30% of its shares, Mr. Chadwick Claro, 1.114596% owned by Inveraray Investments Salvador Said Somavía holding 16% of its shares. Isabel Said (f) Mr. Matías Alberto Garcés Silva, C.N.I. N° 10.825.983-3 Corp., 0.107735% owned by Felipe Tomás Cruzat Chadwick, Somavía, Mrs. Constanza Said Somavía, and Mrs. Loreto Said holds 18.33%; and 0.107735% owned by Carolina María Errázuriz Chadwick, Somavía each holding 8% of share capital. 0.107735% owned by Jacinta María Errázuriz Chadwick, (g) Mr. Andrés Sergio Garcés Silva, C.N.I. N° 10.828.517-6 6.607349411% owned by Inversiones Bocaleón Limitada 3. Lleuque: Inversiones Chucao Limitada was dissolved holds 18.33%. (99.9902% controlled by Felipe Tomás Cruzat Chadwick), through the conveyance of all of its social rights in Inversiones 6.607349411% owned by Inversiones Las Dalias Limitada Lleuque Limitada pursuant to the transfer of rights and social 5. Nueva Delta Dos: Inversiones Nueva Delta Dos S.A., R.U.T. (99.993% controlled by Carolina María Errázuriz Chadwick) dissolution as evidenced by a public deed dated December 20, N° 76.309.244-5, 99.95% owned by Inversiones Nueva Sofía and 6.607349411% owned by Inversiones Las Hortensias 2016, granted by the Notary Public of Santiago of Mr. Eduardo S.A. (This company's direct and indirect ownership is the same Limitada (99.9903% controlled by Jacinta María Errázuriz Diez Morello, an abstract of which is registered on page 12,282 as the one set forth in the previous paragraph for Nueva Delta). Chadwick), whose final controller (as representative for N° 6.839 of the Public Registry of Commerce of the City of management) is Mrs. María Carolina Chadwick Claro. Santiago of the year 2017. The management of this company 6. Playa Amarilla: Inversiones Playa Amarilla SpA (previously corresponds to its members acting jointly; and the social rights Inversiones Las Gaviotas Dos Limitada), R.U.T. 11. Las Niñas Dos: Inversiones Las Niñas Dos SpA, R.U.T. of Inversiones Lleuque Limitada correspond equally to Mrs. N° 76.273.887-2, 100% owned by Las Gaviotas SpA whose N° 76.273.943-7, 100% owned by Inversiones Las Niñas Pamela Hurtado Berger, C.N.I. 7.050.827-3 and Mrs. Madeline final controller (as representative for management) is Mr. Limitada (96% controlled by María Eugenia, María José, Hurtado Berger, C.N.I. 7.050.867-2. Andrés Herrera Ramírez. Alejandra María and Magdalena María all Chadwick Braun), whose final controller (as representative for management) is 4. Nueva Delta: Inversiones Nueva Delta S.A., R.U.T. 7. Playa Negra: Inversiones Playa Negra SpA, R.U.T. Mr. Eduardo Chadwick Claro. N° 76.309.233-K, 99.986% owned by Inversiones Nueva N° 76.273.973-9, 100% owned by Patricia Claro Marchant. – 60 – 3 4

Direct and indirect ownership interest in Andina (including The only shareholder, different from the Controlling Group, In connection with The Coca‑Cola Company’s investment in Series A and Series B shares)1 held by members of the that exceeds 10% ownership interest in Andina is: Andina, The Coca‑Cola Company and the Controlling Group Controlling Group or persons related thereto: entered into a Shareholders’ Agreement dated September 5, 1996, providing for certain restrictions on the transfer of SERIES A SERIES B Andina's capital stock by the Controlling Group. Specifically, SERIES A SERIES B Coca‑Cola de Chile S.A. 67,938,179 67,938,179 the Controlling Group is restricted from transferring its A Inversiones SH Seis Limitada 52,989,375 37,864,863 Ownership interest by Series: 14.3545% 14.3547% Series A shares without the prior authorization of The B The estate of Jaime Said Demaría - 49,600 Coca‑Cola Company. The Shareholders’ Agreement also Ownership interest by Series: 11.1960% 8.0109% provides for certain corporate governance matters, including The Controlling Group acts in accordance with a joint action The Coca‑Cola Company´s right to elect two members agreement between the parties (the "Agreement"). among our directors so long as The Coca‑Cola Company • Annual Report • Annual 2017 Andina Coca‑Cola SERIES A SERIES B and its subsidiaries collectively own a certain percentage a Inversiones Cabildo SpA 52,987,375 49,650,863 According to the Agreement, the Controlling Group shall of Series A shares. In addition, in related agreements, the jointly exercise Andina's control to ensure the majority of votes b José Said Saffie - 49,600 Controlling Group granted The Coca‑Cola Company an at shareholder meetings and Board sessions. The resolutions of Ownership interest by Series: 11.1956% 10.5013% option, exercisable upon the occurrence of certain changes in the Controlling Group are approved by at least four of the five the beneficial ownership of the Controlling Group, to acquire parties, except for certain matters that require unanimity. 100% of the Series A shares held by them at a price and in SERIES A SERIES B accordance with procedures established in such agreements. a Inversiones Lleuque Limitada2 50,001,644 - On the other hand, and subject to the fulfillment of the rules of the Securities Market Law in Chile, the Agreement sets b Inversiones HB S.A.3 1,569,731 1,898,212 Relevant Changes in forth sale options of each party with respect to the other at a c Rentas IMA Limitada4 - 38,978,263 Company Share Ownership market price plus a premium of 9.9% and 25%, with 30-days During the 2017 fiscal year there were no relevant changes in d Alberto Hurtado Fuenzalida - 49,600 window to exercise in June every year, and in June of 2017 Company share ownership. Ownership interest by Series: 10.8964% 8.6473% and 2027 respectively; and in the case that all but one of the parties decide to sell, the Agreement regulates a right of first option to purchase for a period of one year. a Inversiones Nueva Delta S.A. 46,426,645 - b Inversiones Nueva Delta Dos S.A. 3,574,999 - The Agreement is formalized through a private instrument c Inversiones Nueva Sofía Limitada 2,985,731 25,678,583 signed between the parties, and has an indefinite duration. d José Antonio Garcés Silva - 49,600 Ownership interest by Series: 11.1956% 5.4361%

1. Excluding Inversiones Freire S.A.'s nominal ownership interest of 23 Series A SERIES A SERIES B shares of Andina and Inversiones Freire Dos S.A.'s 4 Series A shares of Andina. 2. Inversiones Lleuque Limitada, RUT 76.427.893-3, legal successor of Inversiones a Inversiones Playa Amarilla 13,513,594 13,513,594 Chucao pursuant to the merger agreement through a public deed dated b Inversiones Playa Negra SpA 515,939 515,939 December 20, 2016 in the Notary Public of Mr. Eduardo Diez Morello in Santiago. 3. Inversiones HB S.A., Rut 96.842.220-0 is controlled by (100% indirect c Inversiones El Campanario Limitada 9,788,363 9,788,363 ownership) by the following people: Alberto Hurtado Fuenzalida, C.N.I. 2.593.323-0; Pamela Hurtado Berger, C.N.I. 7.050.827-3; and Madeline Hurtado d Inversiones Los Robles Limitada 9,788,363 9,788,363 Berger, C.N.I. 7.050.867-2. e Inversiones Las Niñas Dos SpA 9,788,363 9,788,363 4. Rentas IMA Limitada, Rut 76.409.659-2, legal successor of Inversiones Mar Adentro Limitada, pursuant to the merger agreement through a public deed f Inversiones Don Alfonso Limitada 9,788,363 9,788,363 dated October 21, 2014 in the Notary Public of Carmona un Santiago, and is controlled (88.33% direct ownership) by Inversiones HB S.A. Ownership interest by Series: 11.1960% 11.1960% * R.U.T. Rol único tributario: Tax identification N° ** C.N.I. Cédula nacional de identidad: National identification card Stock Market Trading Information Stock Market Trading Information – 61 – Chile New York Stock Exchange

he Company’s shares are traded on the Chilean Stock Market he Company’s ADRs were listed on the New York Stock T since 1955. The Securities Registry N° is 00124. In 1997 Texchange in 1994. One ADR is equal to 6 shares of common there was a stock split dividing Coca‑Cola Andina’s shares into stock. In 1997 there was a stock split dividing Coca‑Cola Andina’s two series. The ticker symbol on the Chilean Stock Exchange for shares into two series. The ticker symbol on the New York Stock Andina’s shares is Andina-A and Andina-B. Andina’s stock in Exchange for Andina’s ADRs is AKO/A and AKO/B. The depositary Chile is handled by SerCor www.sercor.cl bank for Andina’s ADRs is The Bank of New York Mellon (www. bnymellon.com).

180 180 Report • Annual 2017 Andina Coca‑Cola 160 160 140 140 120 120 100 100 80 80 2016 2017 2018 2016 2017 2018 Andina A Andina B IPSA AKO/A AKO/B Dow Jones

This chart reflects the daily behavior for the two-year period This chart reflects the daily behavior for the two-year period ending December 31, 2017 of Andina’s series A and series B ending December 31, 2017 of Andina’s series A and series B ADRs shares compared with the Chilean selective price index, IPSA compared with the Dow Jones Industrial index. (Base value = 100) (Base value = 100) Andina-A Andina-B AKO-A AKO-B 2017 Shares Total traded Average Shares Total traded Average Traded (millions Price (Ch$) Traded (millions de $) Price (Ch$) (million) de $) (million) ADRs Total Average ADRs Total Average 1st Quarter 9.7 13,807 2,285 16.4 41,872 2,530 2017 traded traded1 Price traded traded1 Price (millones) (MUS$) (US$) (millones) (MUS$) (US$) Bolsa de 2nd Quarter 8.6 22,067 2,552 19.8 53,830 2,723 Comercio de 3rd Quarter 6.4 16,740 2,596 33.7 98,395 2,908 Santiago 1st 0.21 4.44 21.15 1.15 42.10 23.04 4th Quarter 7.1 22,137 2,699 30.1 89,285 2,972 Quarter 1st Quarter 6.0 188 2,300 1.6 4,094 2,551 2nd Quarter 0.13 2.96 22.75 1.65 25.08 24.67 Bolsa 2nd Quarter 0.2 440 2,553 2.0 5,423 2,708 Electrónica 3rd Quarter 0.3 869 2,562 5.3 15,612 2,917 3rd de Chile Quarter 0.35 8.43 24.08 2.20 29.81 27.00 4th Quarter 0.1 168 2,650 3.0 8,966 3,001 4th 1st Quarter Not Traded Not Traded 0.54 13.79 25.53 1.46 22.01 28.15 Bolsa de Quarter Corredores 2nd Quarter Not Traded Not Traded / Bolsa de 3rd Quarter Not Traded Not Traded Valores 4th Quarter Not Traded Not Traded 1 Total Traded calculated as the Average Price times Volume of Shares Traded Note: As of December 30, 2017, Andina-A and Andina-B shares had a presence of 62.68% and 100% respectively. Source: Bloomberg – 62 – Compensation Board of Directors

DIRECTORS' DIRECTORS' DIRECTORS' EXECUTIVE AND AUDIT TOTAL DIRECTORS' EXECUTIVE AND AUDIT TOTAL 2017 COMPENSATION COMMITTEE COMMITTEE CH$ 2016 COMPENSATION COMMITTEE COMMITTEE CH$ CH$ CH$ CH$ CH$ CH$ CH$

Juan Claro González1 144,000,000 144,000,000 Juan Claro González1 144,000,000 - - 144,000,000 Arturo Majlis Albala 72,000,000 72,000,000 8,000,000 152,000,000 Arturo Majlis Albala 72,000,000 72,000,000 24,000,000 168,000,000 • Annual Report • Annual 2017 Andina Coca‑Cola Gonzalo Said Handal 72,000,000 72,000,000 144,000,000 Gonzalo Said Handal 72,000,000 72,000,000 - 144,000,000 Jose Antonio Garcés Silva 72,000,000 72,000,000 144,000,000 Jose Antonio Garcés Silva 72,000,000 72,000,000 - 144,000,000 Salvador Said Somavía 72,000,000 72,000,000 24,000,000 168,000,000 Salvador Said Somavía 72,000,000 72,000,000 24,000,000 168,000,000 Eduardo Chadwick Claro 72,000,000 72,000,000 144,000,000 Eduardo Chadwick Claro 72,000,000 72,000,000 144,000,000 Gonzalo Parot Palma2 72,000,000 24,000,000 96,000,000 Gonzalo Parot Palma2 72,000,000 - 24,000,000 96,000,000 Francisco Crespo3 24,000,000 24,000,000 Francisco Crespo 72,000,000 72,000,000 José De Gregorio Rebeco3 24,000,000 24,000,000 Emilio Rodríguez Larraín3 18,087,666 18,087,666 Juan Andrés Fontaine Talavera 72,000,000 72,000,000 José De Gregorio Rebeco 72,000,000 72,000,000 Mariano Rossi 72,000,000 72,000,000 Juan Andrés Fontaine Talavera 72,000,000 72,000,000 Susana Tonda Mitri 72,000,000 72,000,000 Franz Alscher3 48,000,000 48,000,000 Georges de Bourguignon Arndt 72,000,000 72,000,000 Ricardo Vontobel3 12,000,000 12,000,000 Enrique Rapetti 72,000,000 72,000,000 Mariano Rossi 72,000,000 72,000,000 Karim Yahi4 48,000,000 48,000,000 Susana Tonda Mitri4 50,000,000 50,000,000 María del Pilar Lamana Gaete2,4 48,000,000 16,000,000 64,000,000 Georges de Bourguignon Arndt4 50,000,000 50,000,000 Total Gross 1,080,000,000 360,000,000 72,000,000 1,448,000,000 Enrique Rapetti4 18,000,000 18,000,000 Total Gross 1,060,087,666 360,000,000 72,000,000 1,492,087,666

1. Includes an additional Ch$72 million as Chairman of the Board of Directors. 1. Includes an additional Ch$72 million as Chairman of the Board of Directors. 2. Independent director of the Company, pursuant to current regulations. 2. Independent director of the Company, pursuant to current regulations. 3. Left the Board of Directors in 2017. 3. Left the Board of Directors in 2016. 4. Joined the Board of Directors in 2017. 4. Joined the Board of Directors in 2016. – 63 – Compensation Principal Officers

n the case of the principal officers, I compensation plans are composed of a fixed remuneration and a performance bonus, that try to adapt to the reality and competitive conditions in each market, and whose amounts vary according to the Report • Annual 2017 Andina Coca‑Cola position or exercised responsibility. Such performance bonuses are payable only to the extent that personal goals of each principal officer and company goals are met, which are previously defined for each case in particular.

For the period ended December 31, 2017 the amount of fixed compensations paid to Coca‑Cola Andina's principal officers amounted to Ch$4,020 million (Ch$4,121 million in 2016). Likewise, the amount of compensation paid in performance bonuses amounted to Ch$2,769 million (Ch$2,528 million in 2016).

For the period ended December 31, 2017, there were no severance payments for years of services to managers and principal officers of Embotelladora Andina S.A. (Ch$463 million in 2016).

The proportion of average base gross salary of female executives regarding male executives is 68.8%, while the proportion of average base gross salary of female workers regarding male workers is 114.9%. Statement of Responsibility

The Directors of Embotelladora Andina S.A. and the Chief Executive Officer who have signed this statement, are responsible under oath of the accuracy of the information provided in the 2017 Annual Report, in accordance with the provisions of General Rule N° 346 dated May 3, 2013, of the Chilean Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros). Embotelladora Andina S.A. and Subsidiaries

Consolidated Financial Statements as of December 31, 2017 FS17 and December 31, 2016

#goPaperless A R G B R A C HI P A R as ofDecember 31, andDecember 31, 2017 2016 Consolidated Financial Statements Andina S.A. andSubsidiaries Annual Report Annual Embotelladora 2017 -66 Coca‑Cola Andina • Annual Report 2017 8 Summarized Financial Statements -Subsidiaries Financial Statements 188 AnalysisoftheResults oftheConsolidated 171 Material Events 167 IndependentAuditor’s Report 165 Notes totheConsolidated Financial Statements betweenJanuary 1andDecember31,20172016 75 Consolidated Statements ofCash Flows fortheperiod and2016 74 theperiodbetweenJanuary 1andDecember31,2017 Consolidated StatementsofChangesinEquityfor and2016 72 fortheperiodbetweenJanuary 1andDecember31,2017 Consolidated StatementsofComprehensive Income and2016 71 theperiodbetweenJanuary 1andDecember31,2017 Consolidated StatementsofIncomebyFunction for December31,2017and2016 70 Consolidated StatementsofFinancial Position asof 68 INDEX - 67 - 67 - Coca‑Cola Andina • Annual Report 2017 Consolidated Statement of Financial Position Financial of Statement Consolidated EMBOTELLADORA AND ANDINA SUBSIDIARIES S.A. The accompanying notes1to31form an integral partoftheseconsolidated financialstatements. Current taxassets Inventory Accounts receivable from related companies Trade andother accounts receivable, net Other non-financialassets Other financialassets Cash andcashequivalents Current assets: Total Assets Total Non-Current Assets Deferred incometaxassets Property, plant andequipment Trade andother receivables Other non-financialassets Other financialassets Non-Current Assets: Total Current Assets Goodwill Intangible assets other thangoodwill Investments accounted for undertheequitymethod Accounts receivable from related parties ASSETS

NOTE 11.1 10.1 14.2 14.1 13.1 11.1 6.1 9.5 6.2 9.2 8 7 5 4 7 5

12.31.2017 2,114,859,467 1,630,849,417 THCH$ 484,010,050 131,363,000 191,284,680 136,242,116 659,750,499 663,272,878 14,138,161 47,394,345 74,259,085 93,598,217 86,809,069 5,370,232 5,611,861 3,212,981 2,395,851 156,492 -

12.31.2016 2,199,109,747 1,646,367,350 THCH$ 552,742,397 144,709,348 190,524,354 141,263,880 666,150,885 102,919,505 680,996,062 60,152,627 35,246,823 80,180,880 77,197,781 5,788,683 8,601,209 1,702,296 3,527,732 147,682 - -68 Coca‑Cola Andina • Annual Report 2017 Consolidated Statements of Financial Position Position Financial of Statements Consolidated EMBOTELLADORA AND ANDINA SUBSIDIARIES S.A. The accompanying notes1to31form an integral partoftheseconsolidated financialstatements. Total LiabilitiesandEquity Total Equity Non-controlling interests Equity attributable toequityholders of theparent Other reserves Retained earnings Issued capital Equity: Non-Current Liabilities: Other non-financialliabilities Post-employment benefit liabilities Deferred incometaxliabilities Provisions Trade andother payables Other financialliabilities Total Current Liabilities Other non-financialliabilities Employee benefits current provisions Income taxes payable Provisions Accounts payable torelated parties Trade andother accounts payable Other financialliabilities Current Liabilities: LIABILITIES LIABILITIES ANDEQUITY

NOTE 11.2 9.5 9.3 19 18 12 17 16 15 18 12 17 16 15 12.31.2017 2,114,859,467 THCH$ 813,233,349 791,310,056 873,338,796 428,287,322 125,204,566 675,767,201 257,519,477 185,049,228 335,523,254 270,737,574 21,923,293 33,961,437 62,947,748 27,007,977 35,955,643 67,981,405 3,184,965 8,286,355 1,132,926 2,676,418

- 12.31.2016 2,199,109,747 THCH$ 842,170,027 820,605,582 937,404,866 419,534,854 125,608,802 721,570,587 242,836,356 254,159,496 295,708,512 270,737,574 21,564,445 44,120,335 10,828,593 72,399,115 20,612,791 35,653,431 64,800,570 8,157,745 9,509,827 682,778 158,790

-69 Coca‑Cola Andina • Annual Report 2017 EMBOTELLADORA ANDINAS.A. ANDSUBSIDIARIES The accompanying notes 1to31form anintegral partoftheseconsolidated financialstatements. and 2016 2017 Consolidated Statements of Income by Function for the periods ended December 31, EMBOTELLADORA AND ANDINA SUBSIDIARIES S.A. Earnings perSeriesBShare Earnings perSeriesAShare Net income Income by indexation units Foreign exchange differences for usingtheequitymethod Share of profit (loss) of investments inassociatesandjoint ventures accounted Financial expenses Financial income Other (loss)gains Other expenses Administrative expenses Distribution expenses Other income Gross Profit Cost of sales Net sales Equity holders of the parent Net incomeattributable to Income taxexpense Net incomebefore incometaxes Non-controlling interests Net income EARNINGS PERSHARE, BASIC ANDDILUTED

NOTE 19.5 19.5 13.3 9.4 26 26 27 25 23 23 24 23

12.31.2017 01.01.2017 (1,069,024,964) THCH$ 1,848,878,619 (348,199,321) (192,927,875) 119,000,725 779,853,655 170,798,359 119,000,725 (55,220,369) (16,701,471) (51,797,634) 117,835,790 (2,537,269) (3,762,930) (1,370,910) 11,194,375 1,164,935 (80,360) 550,834 130.42 118.56 $

12.31.2016 01.01.2016 (1,033,910,027) THCH$ 1,777,459,320 (346,202,795) (183,676,895) 743,549,293 140,856,204 (51,374,971) (22,765,167) (48,807,093) 92,049,111 92,049,111 (3,387,377) (6,378,375) 90,525,991 9,661,692 1,760,899 1,523,120 (262,582) (67,518) 100.19 91.08 $ - 70 - 70 - Coca‑Cola Andina • Annual Report 2017 The accompanying notes1to31form an integral partoftheseconsolidated financialstatements . and 2016 31, 2017 Consolidated Statements of Comprehensive Income for the periods ended December EMBOTELLADORA AND ANDINA SUBSIDIARIES S.A. Total comprehensive income Non-controlling interests Equity holders of the parent Total comprehensive incomeattributable to: Total comprehensive income Income taxrelated tocashflow hedges Income taxrelated toexchange rate translation differences reclassified tonet income for theperiod Income taxrelated tocomponents of other comprehensive incomethat will be Income taxbenefit related todefined benefit plans reclassified tonet income for theperiod Income taxrelated tocomponents of other comprehensive incomethat will not be Gain (losses)from cashflow hedges Gain (losses)from exchange rate translation differences the period, before taxes Components of other comprehensive incomethat will bereclassified tonet income for Actuarial lossesfrom defined benefit plans for theperiod, before taxes Components of other comprehensive incomethat will not bereclassified tonet income Other Comprehensive Income: Net income 119,000,725 (68,831,435) 49,510,000 49,510,000 12.31.2017 01.01.2017 48,725,522 (813,844) (329,477) THCH$ 784,478 167,348 232,666 84,017 (42,836,575) 60,208,637 60,208,637 92,049,111 12.31.2016 01.01.2016 (2,431,408) 59,704,657 13,301,186 THCH$ (29,423) 503,980 148,686 7,060 - 71 - 71 - Coca‑Cola Andina • Annual Report 2017 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES - 72 - Consolidated Statements of Changes in Equity as of December 31, 2017 and 2016

OTHER RESERVES ACTUARIAL RESERVES FOR GAINS OR LOSSES NON- EXCHANGE RATE CASH FLOW IN EMPLOYEE TOTAL OTHER RETAINED CONTROLLING CONTROLLING ISSUED CAPITAL DIFFERENCES HEDGE RESERVE BENEFITS OTHER RESERVES RESERVES EARNINGS EQUITY INTERESTS TOTAL EQUITY THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$

Opening Report • Annual 2017 Andina Coca‑Cola balance as of 270,737,574 (168,744,355) (2,448,175) (1,785,032) 427,137,058 254,159,496 295,708,512 820,605,582 21,564,445 842,170,027 01/01/2017 Changes in Equity Changes in Equity Net income ------117,835,790 117,835,790 1,164,935 119,000,725 Other comprehensive - (68,333,217) (646,496) (130,555) - (69,110,268) - (69,110,268) (380,457) (69,490,725) income Comprehensive income - (68,333,217) (646,496) (130,555) - (69,110,268) 117,835,790 48,725,522 784,478 49,510,000 Dividends ------(78,021,048) (78,021,048) (425,630) (78,446,678) Total changes in equity - (68,333,217) (646,496) (130,555) - (69,110,268) 39,814,742 (29,295,526) 358,848 (28,936,678) Ending balance as of 270,737,574 (237,077,572) (3,094,671) (1,915,587) 427,137,058 185,049,228 335,523,254 791,310,056 21,923,293 813,233,349 12/31/2017 - 73 -

balance as of 270,737,574 (167,447,157) 27,087,214 (1,796,285) 427,137,058 284,980,830 274,755,431 830,473,835 21,060,465 851,534,300 Report • Annual 2017 Andina Coca‑Cola 01/01/2016 Changes in Equity Changes in Equity Net income ------90,525,991 90,525,991 1,523,120 92,049,111 Other comprehensive - (1,297,198) (29,535,389) 11,253 - (30,821,334) - (30,821,334) (1,019,140) (31,840,474) income Comprehensive income - (1,297,198) (29,535,389) 11,253 - (30,821,334) 90,525,991 59,704,657 503,980 60,208,637 Dividends ------(69,572,910) (69,572,910) - (69,572,910) Total changes in equity - (1,297,198) (29,535,389) 11,253 - (30,821,334) 20,953,081 (9,868,253) 503,980 (9,364,273) Ending balance as of 270,737,574 (168,744,355) (2,448,175) (1,785,032) 427,137,058 254,159,496 295,708,512 820,605,582 21,564,445 842,170,027 12/31/2017

The accompanying notes 1 to 31 form an integral part of these consolidated financial statements. Consolidated Statements Cash of Direct Flows and as of December 2016 31, 2017 EMBOTELLADORA AND ANDINA SUBSIDIARIES S.A. The accompanying notes1to31form anintegral partoftheseconsolidated financialstatements. Other payments onacquisitionof financialinstruments Payments onforward, term, option andfinancial exchange agreements Purchase of other long-termassets (termdepositsover 90days) Net cash flows usedinInvesting Activities Proceeds from other long-termassets (termdepositsover 90days) Purchase of intangible Purchase of Property, plant andequipment Proceeds from saleof Property, plant andequipment Investment inassociates CASH FLOWS PROVIDED BY ACTIVITIES (USEDIN)INVESTING Net Cashflows provided by (usedin)Operating Activities Other cashmovements (taxonbankdebitsArgentina andothers) Income taxpayments Interest received Interest payments Dividend received others) Other payments for operating activities(value-addedtaxes onpurchases, salesand Payments toandonbehalf of employees Payments tosuppliers for goodsandservices(includingtaxes) Payments for Operating Activities Receipts from thesaleof goodsandtherendering of services(includingtaxes) Cash flows provided by Operating Activities CASH FLOWS PROVIDED BY (USEDIN)OPERATING ACTIVITIES Financial leaseliabilitypayments Proceeds from short-term loansobtained CASH FLOWS GENERATED FROM(USEDIN)FINANCINGACTIVITIES Effects of exchange differences on cashand cashequivalents Net increase incash andcash equivalents before exchange differences Net cash flows (usedin)generated by Financing Activities Other inflows (outflows) ofcash(Placement and payment ofpublicobligations) Dividend payments by thereporting entity Efectivo yequivalentes alefectivo alfinaldelperíodo Cash andcash equivalents –beginningof year Net decrease incashandequivalents Cash andcashequivalents -endof year NOTE 5.b.2 13.2 4 4 (1,495,009,304) (168,831,410) 12.31.2017 01.01.2017 2,388,420,701 (168,857,680) (333,155,023) (221,146,637) (78,345,770) (18,286,457) 247,960,348 136,242,116 THCH$ (14,153,111) (41,059,494) (15,570,161) (11,923,449) (40,654,077) (53,103,434) (52,146,995) (74,968,175) (5,021,764) 141,263,880 (7,171,991) (4,745,884) (5,804,932) 81,258,426 71,801,741 1,374,638 8,240,023 1,540,090 783,168 99,421 (1,624,748,620) (113,916,317) 12.31.2016 01.01.2016 2,415,467,366 (128,217,485) (280,846,689) (210,545,781) (98,224,525) (11,424,035) 223,446,560 141,263,880 THCH$ (77,789,768) (17,586,575) (25,721,727) (49,931,807) (67,591,930) 109,824,298 129,160,939 11,305,718 12,102,941 (35,864,121 (9,582,089) (5,533,160) 22,188,721 8,610,102 (217,218) 745,805 797,223 70,431 - - - 74 - 74 - Coca‑Cola Andina • Annual Report 2017 territories: corresponding totheSeries Ashares. franchised 2022; As licenses, andtheyareexpectedtoberenewedundersimilarconditionsonthedateofexpiration. Consolidated Consolidated StatementofFinancial Position: AsofDecember31,2017,and2016. These Consolidated financialstatementsencompassthefollowingperiods: 2.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 2-BASIS PREPARATION OF CONSOLIDATED OF FINANCIAL STATEMENTS AND identification numberis91.144.000-8. The El has and to The Commission (previouslytheSuperintendence ofSecurities andInsurancepursuanttoLaw18.046. Embotelladora NOTE 1 - CORPORATE INFORMATION Financial Consolidated Statements the to Notes EMBOTELLADORA AND ANDINA SUBSIDIARIES S.A. Consolidated Consolidated StatementsofDirect Cash Flows: For theperiodsbetweenJanuary 1andDecember 31,2017and2016. 31, 2017and2016. Janeiro, Metropolitan produce Chubut, of distribution principal Paraguay. head December in Periods Covered Espírito Brazil office and Chile, territory Tierra activities Statements Income Region, In Andina sell in of franchises 31, Santo, Chile, Brazil, the Embotelladora del Coca-Cola 2017, covers renewal Statements Rancagua Fuego, of S.A. Niteroi, the Argentina Embotelladora of the in the is geographic Changes Freire the products registered Río process whole Vitoria, and provinces Andina by Negro, and Group Function San in country. and and areas Paraguay. Equity: Nova Andina under S.A. La Antonio. in and of other Pampa Paraguay in Mendoza, Iguaçu, is The and No. its which S.A. located Balance Coca-Cola Licenses related 00124 Company Comprehensive In and (hereafter part Brazil, the they on Córdoba, and the companies of Company of Miraflores for beverages. expire the western movements has Sao the the “Andina,” Securities San distribution Company Paulo territories in Income: has hold 2020. Luis, zone 9153, The and distribution and between 55.68% Registry Company Entre of municipality The has part For in

together licenses the Chile distribution Coca-Cola the Ríos, of of Province January and Minas periods the has expire franchises with Santa from is outstanding of operations regulated Gerais. Company 1 its Renca, of in and Fe, The between franchises subsidiaries, Buenos 2018 Rosario, are December Coca-Cola In Santiago, by in and regions shares chooses Argentina, January Chile’s Chile, Aires. in 2019. Santa the the Company 31, with Chile. II, Brazil, Financial In to 1 “Company”) Cruz, In states 2017 III, and grant Paraguay, the voting Argentina Its IV, December Argentina and Neuquén, Company of taxpayer all in XI, Market Rio rights, 2016. all these XII, the are its de in

- 75 - 75 - Coca‑Cola Andina • Annual Report 2017 nation Company, wherenecessary. panies Intercompany is recognizeddirectlyintheincomestatement. aggregate of control These on February 27,2018. the and S.A. (“Parent Company”) andbyotherentitiesformingpartthereof. company balancesandtransactions. statement The The statements fromtheeffectivedateofacquisitionthroughdisposal,asapplicable. and operations These 2.3.1 Subsidiaries 2.3 subsidiaries These the revaluationofcertainfinancialinstrumentsandderivativeinstruments. The Accounting StandardsBoard(hereinafter “IASB”). prepared The 2.2 The respectively. cash is amount entitled the Company

December liabilities interest acquisition

Consolidated consolidated Company’s flows subsidiary consolidated Consolidated Consolidated are are is Basis of consolidation of Basis Basis of preparation of in of obtained. to

of accounted eliminated. for for investor

of as the accordance variable income

assumed. (its

the the non-controlling transactions, 31, of method consideration Consolidated is

December subsidiaries). financial periods periods 2017 Financial the financial returns. Financial Identifiable Financial returns for by Accounting fair and If is with function initially

between between the used value statements 2016. balances, Statements They 31, statements from consideration Statements International

transferred shareholders Financial Statements 2017 to Control assets of at Income include under

account January January its policies assets their and income, involvement include acquired, have incorporate is “Non-Controlling Statements fair December or have assets transferred, and

for 1 obtained 1

reflect of

is is Financial and losses and values

been presented subsidiaries the less the expenses been all

and December December and acquisition fair assets, than the from presented in at 31, when prepared, the liabilities for identifiable the value equity Reporting consolidated the 2016, the

financial in and subsidiaries the liabilities, investee

acquisition the the are

fair Interest” 31, of 31, unrealized period securities of and in

consolidated non-controlling 2017 Company changed based as 2017 value subsidiaries. accordance of Standards statements the liabilities and

and December income, financial ended and and acquired on of results date. when the issued,

to 2016, gains accounting has 2016, “Earnings ensure

net statement December Goodwill and to (hereinafter expenses, of power of it The

position and or and interest assets the 31, which liabilities has operation, the contingencies sold consideration consistency

2017 losses cash historic the Company over records attributable

are of is of were over 31,

ability of and flows and

the initially changes the included incurred on “IFRS”) Embotelladora changes 2017 cost approved subsidiary the cash kept December transactions investee,

for and to with assumed net criteria, and transferred

measured

use the to in by flows the in issued or

in identifiable the equity non-controlling the

periods its December the assumed by equity companies when acquired, after 31, policies Embotelladora power the although consolidated in between

by Andina and 2016, as Board

a for between it eliminating and the the business

the has to on assets the adopted 31, the and statements International influence controlled

excess consolidated the amended Group S.A. of exposure acquisition 2016 interests”, difference

Directors results January acquired financial date Andina and combi- by of inter- com- were that the the the its by by or of of

- 76 - 76 - Coca‑Cola Andina • Annual Report 2017 in Unrealized Associates The listofsubsidiariesincludedintheconsolidationisdetailedasfollows: 2.3.2 The associates areaccountedforusingtheequitymethodofaccounting. asset adopted bytheCompany. 59.144.140-K 76.389.720-6 96.928.520-7 78.861.790-9 78.536.950-5 76.276.604-3 96.971.280-6 96.705.990-0 76.070.406-7 96.836.750-1 96.972.760-9 96.842.970-1 93.899.000-k TAXPAYER ID those Company’s transferred. Foreign Foreign Foreign Foreign Foreign associates. Investments accounted for underthe method equity

are gains Vital JugosS.A. Vital AguasS.A. Transportes Polar S.A. Transportes AndinaRefrescos Ltda. Servicios Multivending Ltda. Rio deJaneiro Refrescos Ltda. Red de Transportes Comerciales Ltda. Paraguay Refrescos S.A. Inversiones LosAndesLtda. Envases Central S.A. Embotelladora delAtlántico S.A. Embotelladora AndinaChileS.A. Andina Inversiones Societarias S.A. Andina EmpaquesArgentina S.A. Andina Bottling Investments DosS.A. Andina Bottling Investments S.A. Aconcagua Investing Ltda. Abisa CorpS.A. all share

in entities Accounting

transactions Unrealized NAME OF THE COMPANY in profit over policies which or

losses between loss the in of are

associates the the Company also

Company associates eliminated subsequent exercises DIRECT

and are 15.00 66.50 99.99 99.90 99.90 99.90 99.99 59.27 99.99 99.98 99.90 99.90 0.08 0.92 0.71

unless its changed, - - -

associates significant 12.31.2017 to INDIRECT the the 50.00 99.99 97.75 99.07 99.98 99.28 99.99 where 0.09 0.09 0.09 0.01 0.09 0.09 transaction acquisition

are - - - - - influence HOLDING CONTROL(PERCENTAGE)

eliminated necessary, TOTAL 65.00 66.50 99.99 99.99 99.99 99.99 99.99 99.99 97.83 59.27 99.99 99.99 99.99 99.98 99.99 99.99 99.99 99.99 provides date but

is to to does

recognized the ensure DIRECT evidence

not extent 15.00 66.50 99.99 99.90 99.90 99.90 99.99 59.27 99.99 99.98 99.90 99.90 0.08 0.92 0.71 have conformity - - -

of of in

the 12.31.2016 control. INDIRECT the an

Company´s impairment income 50.00 99.99 97.75 99.07 99.98 99.28 99.99 0.09 0.09 0.09 0.01 0.09 0.09 with Investments - - - - - the statement.

TOTAL interests policies on 65.00 66.50 99.99 99.99 99.99 99.99 99.99 97.83 99.99 59.27 99.99 99.99 99.99 99.98 99.99 99.99 99.99 99.99 the in

- 77 - 77 - Coca‑Cola Andina • Annual Report 2017 Management Therefore, thefollowingoperatingsegmentshavebeendeterminedbasedongeographiclocation: The exchangeratesandvalueoftheUFatcloseeachperiodspresentedwereasfollows: case theyarepresentedinthestatementofcomprehensiveincome. the incomestatementsunderforeignexchangeratedifferences,exceptwhentheycorrespondtocashflowhedges;inwhich translation attheclosingexchangerateofmonetaryassetsandliabilitiesdenominatedinforeigncurrencyarerecognized dates ofthetransactions.Lossesandgainsinforeigncurrencyresultingfromliquidationthesetransactions Foreign currencytransactionsaretranslatedintothefunctionalusingforeignexchangeratesprevailingon 2.5.2 currency. are presentedinChileanpesos,whichistheparentcompany’sfunctionalcurrencyandCompany´s presentation primary economicenvironmentinwhichtheentityoperates(“functionalcurrency”).Theconsolidatedfinancialstatements Items includedinthefinancialstatementsofeachentitiesCompany aremeasuredusingthecurrencyof 2.5.1 2.5 IFRS 2.4 12.31.2017 12.31.2016 • • • • 8 DATE requires Paraguayan operations Argentine operations Brazilian operations Chilean operations Foreign currency translation Financial reporting by operating segment Balances andtransactions Functional currency currency andpresentation and that the entities Board DOLLAR 614.75 669.47 US$ of disclose Directors R$ BRAZILIANREAL information use 185.84 205.42 internally EXCHANGE RATE TO THE CHILEANPESO on the to A$ ARGENTINE results assess PESO 32.96 42.13 of performance operating UF UNIDAD DE 26.798,14 26.347,98 FOMENTO segments. of segments In general, PARAGUAYAN and GUARANÍ 0.110 0.116 allocate this is resources information € EURO 739.15 705.60 to them. that -78 Coca‑Cola Andina • Annual Report 2017 differences arerecognizedintheincomestatementaspartofgainorlossondisposalinvestment. are other In that The 2.5.3 The companiesthathaveafunctionalcurrencydifferentfromthepresentationofparentcompanyare: Paraguay Refrescos S.A. Andina EmpaquesArgentina S.A. Embotelladora delAtlántico S.A. Rio deJaneiro Refrescos Ltda. consolidation, recognized

have financial iii. ii. i. comprehensive Allresultingtranslationdifferencesarerecognizedinothercomprehensiveincome. Revenue andexpensesoftheincomestatementaretranslatedataverageexchangeratesforperiod; ting date; Assets andliabilitiesforthestatementoffinancialpositionaretranslatedatclosingexchangerateasrepor- a Translation offoreign subsidiaries functional

position as translation comprehensive income.

currency and

results COMPANY differences Exchange different

of income

all

entities differences from arising net the

of in

from the deferred presentation from Company the accounts taxes, translation

currency (none if receivable, applicable. of of

which are net translated investments which has On

disposal the G$Paraguayan Guaraní are FUNCTIONAL CURRENCY into currency considered A$ Argentine Peso A$ Argentine Peso R$ Brazilian Real in the of foreign the presentation

a investment, part

hyperinflationary entities of an currency equity are such recognized investment, translation as

economy) follows: in

- 79 - 79 - Coca‑Cola Andina • Annual Report 2017 of charged totheincomestatementinreportingperiodwhichtheyareincurred. items Subsequent (attributable cost)atJanuary 1,2009,inaccordancewiththeexemptionsIFRS1. If amount andarechargedtootherexpensesbyfunction. Gains recoverable amount. When The The estimatedusefullivesbyassetcategoryare: amounts totheirresidualvaluesoverestimatedusefullives. Land future Assets 2.6 nued if appropriate. Historical date, lessdepreciationandcumulativeimpairmentlosses. nment´s between thebookvalueanditsfairlesssellingcosts. Bottles andcontainers Other Property, plant andequipment Motor vehicles Furniture andsupplies Warehouse installations andaccessories Plant andequipment Buildings there the residual is operations”

less item and the economic included not Property, plant, and equipment are preferential

cost government value losses depreciated. can items costs value of be

in of benefits are Property, on are available measured and

Property, an separated disposals credit included

asset useful subsidies Depreciation associated for plant rates.

ASSETS is reliably. plant lives

sale greater in of from and resulting Historical the property, of and and on with Property, The assets equipment asset’s

than equipment other comply carrying the from

are plant, its cost carrying assets items plant

reviewed estimated with the also includes and amount are is and of difference the includes calculated amount Property, recognized equipment equipment conditions and

recoverable expenditures of adjusted the or revaluations between using plant recognized replaced at are and of their

at the and amount, calculated IFRS the are that the straight-line part historical equipment presented and valuation end 5 are as “Non-current

is the a price-level of directly derecognized. by separate

each value cost comparing of method within will RANGE IN YEARS RANGE financial liabilities attributable

or is asset flow restatements 10-30 10-20 30-50

fair written 2-8 3-8 5-7 4-5 assets current to Repairs to only value the allocate statement-reporting at the held down proceeds fair to when assets on Company the for and their value of the

immediately it acquisition sale opening at maintenance is IFRS cost the to and probable and and the lower or the transition disconti- balances revalued carrying the period, gover-

of value to cost that

the are its

- 80 - 80 - Coca‑Cola Andina • Annual Report 2017 from Since identifiable organization atwhichgoodwillismonitoredforinternalmanagementpurposes. Goodwill Gains andlossesonthesaleofanentityincludecarryingamountgoodwillrelatedtothatentity. Goodwill iscarriedatcostlessaccumulatedimpairmentlosses. nations. indicating Assets Assets Impairments2.8 of non-financial assets income statementoveraperiodoffouryears. criteria Carrying 2.7.3 Distribution 2.7.2 Goodwill 2.7.1 Goodwill 2.7 in are rights will For costs toselloritsvalueinuse. carrying tests onanannualbasis. cash flows(cashgeneratingunits). certain tested the be the goodwill are that that renewed in purposes Distribution value amounts synergies is Software rights Distribution represents born territories annually IAS that have assigned assets are rights of is from the 38, Intangible and assets Goodwill subject an indefinitely an the of of correspond carrying Intangible for are arising indefinite intangible assessing in the to the the asset rights impairment contractual Argentina, each to process subsidiary excess amortization exceeds from have amount cash by useful Assets, to impairment, asset the of of the internal an generating Brazil, the valuation rights its or and Coca-Cola indefinite with life, may business more have recoverable consideration the are such indefinite and to not Chile been fair assets frequently produce tested unit at be external combination. as Company useful fair and value recoverable. intangibles (CGU) met. amount. are value for useful Paraguay and/or transferred life of software grouped Software if impairment the or with of events and life, group the The non-controlling Such distribute related are An that similar it assets development at or recoverable is is not impairment over of CGUs the were changes amortized recognized cash-generating to whenever amortized, and terms lowest the distribution products acquired or liabilities Company’s in groups amount and interest levels costs, in loss circumstances separately there as under administrative conditions. during is the rights which for of of units, in is recognized is companies interest CGUs Company which the the the an Business and and are event from Coca-Cola greater subsidiary represent indicate They capitalized tested goodwill, there in expenses where for or believes acquired the Combination. of are are change the annually an net brand a on it subject the potential are separately amount asset’s is once the fair that in in expected not lowest in and the acquisition business for value the the to circumstances amortized fair by other impairment. impairment. consolidated Distribution impairment agreements recognition identifiable level which of value to the benefit combi- brands in date. and less net the the

- 81 - 81 - Coca‑Cola Andina • Annual Report 2017 are Gains Derivatives arealsocategorizedasheldfortradingunlesstheydesignatedhedges. current assets. more amortized costlessaprovisionforimpairment. classified statement underfinancialincomeorexpenseduringthefiscalyearinwhichtheyaregenerated. ket Accrued interestisrecognizedintheconsolidatedincomestatementunderfinancialincome. date andarecarriedatcost,whichapproximatestheirfairvalueconsideringshort-termnature. loans The 2.10 Other 2.9.3 may An Loans 2.9.2 Fair 2.9.1 The 2.9 Derivatives and exchangeratesassociatedwithrawmaterials,loanobligations. which As ofDecember31,2017and2016,therearenosignsimpairmentinanytheCompany’s financialassets. At as ahedginginstrument,andifso,thenatureofitembeing hedged. sured hold global aginganalyses.Thelossisrecognizedinconsolidatedadministrativeexpenses. the impairment period. included Company

value Company not until

than and at or financial and close the Derivatives financial instruments and hedging activities hedging and instruments financial Derivatives assets Financial their be losses Financial assets heldto maturity Financial assets andreceivablesLoans at fair value throughFinancial assets profit orloss under financial financial receivables, their accounts 12 Loans are able of in fair months and each classifies initially from assets maturity. trade is this to and value. recorded its collect assets period, assets receivable category changes subsidiaries and receivables correspond from financial recognized The its They were other with the the on financial the method in if full trade are Company acquired. are changes reporting receivables assets it fair are use is financial to amount recorded at accounts value acquired bank of assets not fair derivative held recognizing in Management assesses quoted value date, of deposits according results assets in to into in financial receivable mainly maturity, the current in on financial the in with if which consolidated are the that an the there following to for assets financial determines active date assets fixed when resulting the the and case selling instruments is a Company’s original evidence and at available market. derivative because there they categories: fair assets statement it determinable gain the in are value is terms They the of objective for they classification or available to classified contract management impairment through mitigate loss short sale. financial of are of mature financial depends the included payments evidence The term. for is as profit receivable, risks entered in sale non-current assets classification of for less has Assets its on position relating and in in that any financial that whether the than at the current into loss asset the fair based in are positive short to 12 and and Company this assets. are value depends not changes or months assets the assets, either they recognized are term. group category quoted derivative intention through Loans subsequently at are on unless and in A on from initial of recorded in financial foreign individual are financial the and its an in profit the and is they recognition. subsidiaries classified purpose the active receivables designated reporting currency ability re-mea- income are or asset at assets. or their mar- loss, due for on in to is -82 Coca‑Cola Andina • Annual Report 2017 in or liabilities exchange The Fair value hierarchy The The Company doesnotusehedgeaccountingforitsforeigninvestments. recorded under“other currentfinancialassets”or“other currentfinancialliabilities”inthestatementofposition.” recognized The 2.10.2 remains relating example, Amounts income statementwithin“other gains(losses)” in The assessment, well At 2.10.1 Level Level 1:Quoted(unadjusted)pricesinactivemarketsforidenticalassetsorliabilities. value byvaluationmethod: of characteristics are highlyeffectiveinoffsettingchangescashflowsofhedgeditems. During Inputs fortheassetsorliabilitiesthatarenotbasedonobservablemarketdatainformation. Level3: is, asprices)orindirectly(thatderivedfromprices). valued duringtheperiodusingLevel2. December 31,2016,theCompany hadnoimplicitderivatives. other financial the when the effective Company as fair Company 2: consolidated inception its the Inputs comprehensive to in value a

when Derivative financial instruments not designated Derivativefor hedginga financialinstruments designated as cash flowDerivative financialinstruments hedges contracts, (current risk accumulated hedge the

equity reporting in position. both portion management effective of also the records and foreign other of derivative no and at

and consolidated evaluates the risks which income hedge longer of than The is periods

currency transaction, non-current portion assets in changes income. recognized are Company equity are quoted inception meets financial objectives statement the closely classified and there of

denominated in The income existence are cross prices the liabilities the when the financial were uses related reclassified gain and instruments criteria and fair within group currency within included statement on the no or the of value strategy loss to as an derivatives transfers forecast liabilities), following documents for financial “foreign other the of ongoing of relating to swaps hedge in December that derivatives for master profit under financial Level transaction undertaking of

do exchange liabilities hedging hierarchy implicitly accounting, basis, respectively. to items or the not

1 “Other agreement, the that loss 31, assets relationship qualify that ineffective of between are the are in 2017 is differences”. whether for in are income ultimately various the

(current observable effects translated any financial These determining for designated and periods as fair cumulative hedge portion stipulated the between December of and hedging contracts assets value changes recognized derivatives instrument

into

for When when losses”. accounting is and

the measurement and and their hedging recognized transactions. gain by the qualify are 31, a in assets non-current) disclosing

hedging IAS functional foreign The in hedged that 2016, or carried contracts the pursuant instruments loss 39. and

as fair are immediately consolidated based cash As exchange instrument existing liabilities, The item categories. at used value financial

currencies). to of fair and flow group to determine on affects December in

value of IFRS other and hedging in its hedges rates these either instruments in also equity income All derivative expires profit hedged in current are the

The are of

documents the whether derivatives is 31, immediately directly consolidated transactions

at which gain recognized recognized or statement. statement or 2017 that items, financial loss foreign is

or at were sold, their time (that

loss and (for fair its as is

- 83 - 83 - Coca‑Cola Andina • Annual Report 2017 country inwhichtheyoperate. objective amortized rules the The which thetemporarydifferencescanbeutilized. Deferred and Deferred The 2.15 considered General Resources 2.14 Cash 2.13 Trade 2.12 Estimates head The Inventories 2.11 in thenearfuture. with thefuturevalueofliabilitiespayable,usingeffectiveinterestratemethod. value net the deferredincometaxliabilityissettled. based of changeinvalueinvestmentsandmutualfundswithoriginalshort-termmaturities. or production materialsarestatedatthelowerofcostornetrealizablevalue. the costofthoseassetsuntilperiodinwhicharesubstantiallyreadytobeusedorsold. and thelossisrecognizedinadministrativeexpensesconsolidatedincomestatementbyfunction. substantively Company of cost liabilities Company Company Inventories (based and

in is costs accounts either the Other financial liabilities financial Other equivalentsCash and cash Trade receivables Income tax Income the and of evidence income income cash are cost obtained finished as estimated incurred are Income on on specific also can and those and equivalents does less stated operating receivables individual enacted tax taxes control made that their its provision not goods that from Tax assets during borrowing selling subsidiaries at are the recognize carrying for the Law. on require the capacity) financial calculated and Company includes or are and obsolescence the lower the price timing for on Subsidiaries work recognized balance transaction. other impairment, a amounts costs global of deferred substantial in in to institutions cash in of cost may using Chile the bring accounts progress directly the aging sheet on ordinary of and not only in reversal in the account income raw hand, the Then, the be net other date given analyses. period liability to attributable receivable goods materials as includes able consolidated realizable the course bank and well liabilities of taxes countries for their to extent of the to method are income collect as balances, The time marketable raw for short-term temporary of and the are expected to value. that business, are carrying temporary materials, in account finished issuance the the recognized financial on tax order valued it time is full temporary Cost acquisition, according to probable differences nature. condition, amount less amount to for products apply deposits is by direct of differences statements, get determined income accruing initially applicable debt ready A when differences to that labor, of according provision construction securities and but the based and the future taxes for at the interests net from it other other using it asset variable fair using excludes their on is deferred taxable according probable for taxable arising to turnover investments value short-term direct are is the the forecasted the impairment or in reduced selling initially tax original income interest order and production weighted income costs profits between that rates and to subsequently expenses. highly to the by and recognized use in they age will calculated terms expense. that equal tax the is subsidiaries tax the average manufacturing or of made will be asset of liquid have provision regulations tax the sale, the of available qualified Spare not bases the Net related is when been current cost based at measured are and be realized, receivable, fair realizable parts in added reversed of method. amount low enacted there against assets, goods. on which assets value, of value over risk and the the or to at is -

- 84 - 84 - Coca‑Cola Andina • Annual Report 2017 Provisions can bereliablyestimated. tion cash settlementsforsuchamounts duringtheupcomingyear. rate thatreflectscurrentmarketassessmentsofthetimevaluemoneyandrisksspecifictoobligation. The required yearsofservice. on anaccrualbasis.Theseliabilitiesarerecordedundercurrentnon-financialliabilities. have Deposits and in This This 2.19 over Each classified Leases 2.18 Provisions 2.17 The 2.16 Operating leasepaymentsarerecognizedasanexpenseonastraight-linebasisoverthetermoflease. available tothem. plan. Additionally, Results fromupdatedofactuarialvariablesarerecordedwithinothercomprehensiveincomeinaccordancewithIAS19. vidual andcollectiveagreementssubscribedwithemployees,whichisrecordedatactuarialvalueinaccordanceIAS19. lower ofthefairvalueleasedassetsandpresentminimumleasepayments. good distributors, Company as Company the

liability liability legal lease a. b. Provisions These Leases Leases

a of Operating leases Finance leases Deposits for returnable for containersDeposits Employee benefits condition, lease result for as

Property, rights payment are for plans pertains finance returnable comprises the period litigation measured has and of to the Company past grant a together

defer its is plant leases provision estimated so to

allocated event, subsidiaries the as containers the and cash settlement at to and deposit that the right has with produce other it collateral,

to is equipment between number present are retention probable the to cover amount contingencies are have capitalized certain for original a presented constant

indemnities value the of a or recorded period bottles plans that deposit, that

where liability officers invoice. of an at is periodic the for in as reimbursed are the in outflow the a

and excess a received to expenditures provision circulation, some for current recognized inception The receive Company

finance years rate of of officers, liability from one resources of liability when a of to

charges. cash interest of and service account has when year. expected the customers is the which a payment in estimated substantially historical lease However, customer the will

other on that The for have the to Company be of

interest will the financial be for on the remaining required based a average required or be cost the a bottles provision item certain all distributor paid

element Company has of on the liabilities of to weighted vacations and to the balance a to Property, settle date risks present employees pursuant settle

is other number returns

charged once does the and because of value the and returnable legal plant obligation, the not they rewards obligation to of the other in

to per liability anticipate bottles the or the have

and accordance bottles the bottle constructive Company guidelines employee

income of equipment containers fulfilled and for given using ownership and or any each the containers. containers

statement with to a material does with benefits amount of period. pre-tax obliga- clients made at indi- each not the the are

- 85 - 85 - Coca‑Cola Andina • Annual Report 2017 imply itwillberepeatedinthefollowingperiod. Administration a The suffered goodwill oftheBrazilian,ArgentinianandParaguayan subsidiaries. in expenses value The 2.23.1 with assets ofgoodwillandintangible Impairment indefinite useful lives The 2.23 Dividend 2.22 The 2.21 Revenues 2.20 amounts. Theestimatesandjudgmentsthatmighthaveamaterialimpactonfuturefinancialstatements. cing considering the30%minimumdividendofperiod’searningsestablishedbyChileanCorporate Law. regular variables. recovery judgments The planning Revenues arerecognizedoncetheproductsphysicallydeliveredtocustomers. economic benefitswillflowtotheCompany. creditor Chile, Company contribution Company Company Company of in

advertising course Critical accounting estimates and judgments and Critical estimates accounting Contributions Company of The Coca-Cola Revenue recognition Dividend payments Dividend use value Brazil, any end and distribution from to If as calculations. these such impairment. they past other test according receives of recognizes makes Argentina Expenses regular the received incentive annually results. are assets and economic Company’s to subject estimates certain promotional activities Company to The are account. from and revenue Therefore, The the whether have considered key to Paraguay factors discretionary discounted recoverable TCCC inherent and activities. variables include been Given shareholders when programs goodwill judgments management including are fulfilled, generated to its the fair uncertainties; recognized used cash This have amounts discretionary contributions amount and value for flows in revenue inflation. they is been concerning intangible its the a recorded evaluates, of higher of products are analysis. of in calculations impaired, the cash however, net revenue is recorded nature, consideration from value The presented as equity assets the generating and in Discounted a estimation The they than liability future. the the can the updates include as with after Coca-Cola territories assumptions portion will be the net a reduction indefinite the Actual units reliably in received carrying of be sales estimates cash of the VAT, conditions written of these are Company’s Company where volumes results flows contributions measured, reimbursements, or values in useful are generating variables off to the according in consistent the agreed may be at the and of marketing life (TCCC) Company received their the consolidated Company’s and differ (such prices, requires received units with respective to estimated it with the mainly as from is deductions for TCCC discount are expenses has probable distribution conditions the a in goods cash determined distribution use previously financial net one Company’s related fair in of assets, generating order rates, sold period included value that and estimates affecting to rights) statements, during marketing to discounts. the estimated the including based or licenses. does internal become future future in finan- units have and not the the the on

- 86 - 86 - Coca‑Cola Andina • Annual Report 2017 conditions, discounted among the stances determines assessment oftradereceivables,bothoutstandingandpastdue,amongotherfactors. to useful also generated book The 2.23.5 (excluding Property, 2.23.4 The 2.23.3 in The for IFRS 2.23.2 Fair Value andLiabilities ofAssets distributors. In recorded, changes the life specific estimates Other assets, andadiscountrate. of of bottlesincirculation,theamountdepositthatmustbereimbursed andthetimingofdisbursements. cost the estimationoffuturecashflows. are tion specific an bottles the selling considered planned bottles of basis values per Company Company applies requires value active those assets lives case other indicate inability bottle in Liabilities for deposits of returnable container ofreturnable forLiabilities deposits Useful life, residualofproperty, value andimpairment plant, andequipment Allowances for doubtful accounts plant, for which given the an provisions, by and interest) for and its of cash market, changes of that usage assets. estimations acquired, measuring This asset factors, the fair in assets the capital or comparable evaluates appropriate containers records the and on that the certain reduces of flows intangible container. value liability valuation of or loan a Changes is estimated the useful equipment shorter. in the manufacturing customer paid on less strategy allowances and may a the based Company cases assets to certain carrying the the over liability to than in represents life liabilities customers assets, under business differ Management assets, transfer of The good recognized collectability in that on the recoverable and might of to the intangibles circumstances, are assumptions the Company Property, value for for fulfill assets the determines from period condition, among liabilities carrying adjusted recorded a “multi-period equipment, model, assumed doubtful deposits modify circumstances. the liability and of its actual and receivable during amount any others. makes of amount distributors, financial plant recognized reviews amount at liabilities or by trade together the at about of fair accounts in received fair in cash changes such cash cost those a and dispensers, a effective which several These value transaction value of business receivables excess to according its flows the commitments, of and as flows deposits equipment Assumptions the be with long-lived assets the as in are technological expected estimates based are the valuation in recorded depreciated assumptions amount earning because a useful exchange asset, that operating the also their result intangible combination transportation may to ordered that on using original do determined the the current might assets operating lives the at not that techniques of method”, of not of, must include a asset their revised for bottles several best acquisitions using profit. specific advances, be among between as the in come invoice. assets for be bottles prices be recovered. compared order fair are shall information Company shortened, impairment profits the the reimbursed equipment based If which in remaining from factors. value. carried provision require other will the in be market circulation depreciated to This straight-line and changes an written-off estimate from on generate sum these, in involves Fair The reasons, to active containers liability estimates at When the historical certain it participants available our fair whenever and of useful for value depreciates business estimate if to future. but the market. the and estimates. this doubtful value cost the the computer cash the method is technological to from inputs is projected customer life. estimated to the Company’s collection its estimation the liability, provided Company by of The using flows, be of combinations, events estimated recovery using other at weighted For Factors price the future to able accounts over Company’s the Whenever software be those valuation excess cash including discounted that or or date assets. valuation to based to history estimated, the becomes of cash changes, such business changes and distributor collect. its that recoverable average would flows future of estimated is between could customers on recent measurement. flows The estimated as the the are and estimation methods the the techniques. In from changes be cash aware in cash not economic Company Company Company model, including historical make a is addition number number received transac- circum- general returns the based, traded useful value. flows flows other that of and and net the or in of a

-87 Coca‑Cola Andina • Annual Report 2017 the on orafter 1January 2018. accounting significantly affectthefinancialstatements. with Company’s consolidatedfinancial statements. The The IFRS 9“Financial Instruments” Standards 1, 2018. January for beginningonorafter annual periods 2.24.2 Standards 1, 2017. January for beginningonorafter annual periods 2.24.1 accounting of theserules: not classification to IFRIC 23 IFRS 16 IFRIC 22 IFRS 15 IFRS 9 IAS 12 IAS 7 IFRS 12 replace date effective final adoption changes of New accounting standards (Standards, Interpretations and Amendments) effective application New andAmendments) effective accounting Interpretations (Standards, application standards New andAmendments) effective accounting Interpretations (Standards, application standards version IAS and and these for and at and in of 39 the interpretations, income interpretations, a profit Uncertainty overIncome TaxUncertainty Treatments Leases Foreign Currency Transactions andAdvanced Considerations Revenue from Contracts withCustomers Financial Instruments Income Tax Statements of CashFlows Disclosures of Interests inOtherEntities financial the measurement Financial of significantly date IFRS aforementioned and and of these 9 statements, loss, Instruments: losses Financial reformed as as AMENDMENTS AND/ORIMPROVEMENTS without financial principles, well well for changes standards, Instruments are as as applying NEW STANDARDS focus statements, Recognition the the detailed it introduces improvements improvements in for other fair amendments hedge below. was are value and IFRS issued a detailed accounting. The “more Measurement. regarding 9 and and Company requirements. in and prospective” below. amendments amendments July interpretations Entities “own 2014, The has This credit Company applied incorporating It model will standard to is to mandatorily IFRS, risk” IFRS, also do for these has have for not expected includes which which MANDATORY APPLICATION DATE MANDATORY APPLICATION DATE rules not financial all have the the performed effective January 1, 2019 January 1, 2019 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2017 January 1, 2017 January 1, 2017 have have option concluding credit a new phases significant liabilities been been requirements losses of for of an early issued, issued, periods that the early for set impact application IASB they impairment at but application effective beginning fair based will are project on value still not the on of at

-88 Coca‑Cola Andina • Annual Report 2017 The detailed disclosure.Itismandatorilyeffectiveforperiodsbeginningonorafter January 1,2018. model The Company’s consolidatedfinancialstatements.Thecompanywillusethemodifiedretrospectivetransitionmethod. presented consolidated of The turnover oftheCompany’s productsandinordertoremaincompetitivethemarket. on recognizing this Interpretationtopreviousperiods. lers Company’s consolidatedfinancial statements. The This or collections,theentityshalldetermineatransactiondateforeachadvancedconsiderationpaymentcollection. asset for accounts The 22“ForeignIFRIC Interpretation Currency Transactions andAdvanced Considerations” on theConsolidated Financial Statements. 0.87% information 5) five-step the except IFRS “RevenueIFRS 15 with from Contracts Customers” Company product andthedeliveryofpromotionalproducts,whicharecurrentlybeingrecognizedinstatementincomewhen 3) With revenue andcashflowsderivedfromcontractswithcustomers. Determine IAS Recognize the this most through Interpretation Company Company standard adoption Interpretation or 15 regards leases, 18 for of initial purpose Revenue liability approach of Consolidated and recent transfers deducting recognizing a revenue to traditional non-monetary financial recognition the to revenue deliver financial also of is has allow arising the the from revenue defining the price to presents addresses completed date these will reporting Revenues. recognizing a users between aforementioned Contracts statements. when model of Revenues. revenue instruments from and be of the of products recognition the the of applied asset a the modern the the transaction; the that the single best the IFRS segment transaction and The with related payment or way entity financial Regarding revenue: will assessment As presentation liability to for and and more gross comprehensive Customers, channels, to the part facilitate guide, standards, annual satisfies asset, of determine US insurance 4) or customers. Embotelladora corresponds detailed tax of 1) statements arising Assign collection GAAP. the identification the including expense amount process periods in comparability recognition about the issued process, amendments which from the requirements contracts. the performance model This These of the of or date of to beginning to price in the industry-specific prices the the understand the income the Andina, management May new municipal of payment of for and revenue advanced Argentine of possible moment the of the It 2014 standard with the accounting companies and is valuation contract; for (or transaction January obligation. revenue a transaction is joint such or interpretations the contracts channels gross the impacts a in consideration. collection new Operation has pretends corresponding which nature, project guidance. customers of 1, 2) channels taxes in of concluded standard this 2018. Identify in Additionally, different revenue that are with to an order tax, of with in amount, each to entity supported amounts advanced the the An multiple This improve we are do are applicable performance If to the performance adoption they from industries entity Argentine have there part not establish constantly initially mainly comprehensive FASB measure an have to have of consideration customer concluded elements. by inconsistencies are shall Th$15,927,999 entity these) to to contracts related of recognizes multiple no the a all and Operation, eliminate obligations IFRS negotiated disclose of significant obligation significant contracts must exchange in time regions. contracts that to It the 15 model with advanced the in also and disclose represents the there the de-recognition differences foreign and which with sale due in in and It different impact rate requires non-monetary uncertainty impact application and grants introduces the the is weaknesses to of customers, represents to no payments sufficient today currency, contract; contract; the replaces finished be impact for on on a more upon retai- used high new the the the are of of of a

- 89 - 89 - Coca‑Cola Andina • Annual Report 2017 Early applicationispermittedifadoptedtogetherwithIFRS15Revenue fromContracts withCustomers. of liabilities dard treatment keep The entitywillassesstheimpact oftheamendmentonceitbecomeseffective. at fairvalue.Theamendmentsmustapplytobusinesscombinations madeafter January 1,2019.Earlyapplicationisallowed. ness The IFRS 3“Business Combinations” Company’s consolidatedfinancial statements. The is initial The IAS 28“Investments inassociates andjointventures” Company’s consolidatedfinancialstatements. The required In over Income Tax “Uncertainty IFRIC 23 Treatments” Company’s consolidatedfinancialstatements. The In “Leases” IFRS 16 beginning January 1,2018,allowingearlyapplication. annual periodsbeginningafter January 1,2019. IFRS 10 IAS 28 IAS 23 IAS 12 IFRS 11 IFRS 9 IFRS 3 IAS 28 not view January June amendments amendment adoption adoption adoption combination does the itself recognition of 2017, measurement by for not of the 2016, an IAS assets the differ lessor. of of of the investment 12 majority Consolidated FinancialStatements Investments inAssociates Borrowing Costs Income Taxes Joint Arrangements Financial Instruments Business Combinations Investments inAssociatesandJoint Ventures the the the the clarifies clarify are to IASB Income and significantly assess IASB aforementioned aforementioned aforementioned However, applicable, at liabilities that issued fair of that issued entity its Taxes leasing when value investments an from IFRIC including AMENDMENTS ANDIMPROVEMENTS has from IFRS entity arising when an applied contracts. an the entity standards, standards, standards, the Interpretation 16 that there interest point from Leases. preceding the in by gets is associates its is IFRS interests of a these uncertainty in associate. control venture amendments amendments amendments IFRS view an 16 standard, contracts 23, associate of will 16 previously and of capital clarifying the sets The an be joint about lessee, entity mandatory the from IAS modifications and and and or organization, ventures definition held joint the 17 the that interpretations interpretations interpretations the the Leases, tax on application venture is point new for treatments. the at a joint of fair must annual standard assets regarding of or a that value lease view venture, another be of and do do do is periods applied agreement with of This recognition requires an not not not accounting liabilities the MANDATORY APPLICATION DATE qualifying the investment changes interpretation have have have lessor beginning requirements retrospectively, January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2018 To bedefined the and a a a of and significant significant significant and in recognition treatment a entity, specifies entity, joint results. measurement lessee. after shall venture can for it January and If the from impact impact impact may The a be choose of an phased are accounting applied assets entity presented new choose the effective 1, criteria on on on in 2019. point busi- stan- that and the the the the for to

- 90 - 90 - Coca‑Cola Andina • Annual Report 2017 the ventures IFRS by directly The Company willassesstheimpactofamendmentonce it becomeseffective. and shallbecomeeffectivebeginningJanuary 1,2019.Earlyapplicationisallowed. The IAS 28Investments inAssociates The “BorrowingIAS 23 Costs” The Company willassesstheimpactofamendmentonceitbecomeseffective. originally The “Income Taxes”IAS 12 not The IFRS 11“Joint Arrangements” The Company willassesstheimpactofamendmentonceitbecomeseffective. begins January 1,2019andwillberetrospectivelyperformedwithearlyadoptionallowed. only is that A IFRS 9“Financial Instruments – Payments with negative compensation” an time The Company willassesstheimpactofamendmentonceitbecomeseffective. Early applicationisallowed. when meets Amendments termination ofthecontractorwhichpartypaysreceivesreasonablecompensationforearlycontract. The Company willassesstheimpact oftheamendmentonceitbecomeseffective. applied beginningJanuary 1,2019. to value debt carried reflect IFRS entity associate have the amendment amendments amendments amendments if of 9, of substantially the other instrument the contractual linked the 3. applies the for recognizes the recognized out criterion The operation. cost elements joint those change or within to to amendments joint to of IFRS affects past control clarify clarify clarify investments these of an can cash all income those in venture. the only of The transactions associated 9 the reference be joint the flows shall long-term that that business that of transactions amendments measured principal activities change a tax arrangements clarify an joint an apply This the are that on entity entity hedging interest only income model operation or clarification dividends interests. in when that plus do necessary at events fair principal or applies not treats amortized shall the interest past rate. prepayment for instrument value, tax apply on interests that could apply Entities any that in events. on This interests IFRS to is and results, such payments generated dividends the culminate relevant indebtedness classification. cost, gain to implies interest 9 The equity previously as transactions should will Financial is previously cost control the other approximate amendments normally because regardless that distribution generated effects method payments that or apply comprehensive at if originally maintained prepayments Instruments Amendments asset the fair held in of it the satisfy but implies credit which joint to value of

on by shall for in amendments of unpaid which, the the financial a made use operation the profits joint risk apply the through in event that outstanding for at income or criterion that to or joint in capital fair to operation. long-term to sale the IFRS than or liquidity substance, develop instruments joint dividends value activity another circumstance control expected retrospectively, are or and distribution 9 only operation equity, principal complete. aim or are A a interest investments constitutes is principal for qualified

participating comprehensive recognized is credit not to acquired according part classified an clarify representative. are that capital amount amounts to Amendments of loss with the payments not asset causes the a after that

in after model, business and owners. as certain re-measured to party, associates net including as a where equity in January result, January the the financial a investment such but general plus described Application instrument exceptions, anticipated Therefore, as should the are that provided a 1, defined interest 1, or the way 2019. entity 2019. at more asset joint does loan fair the be in in as

- 91 - 91 - Coca‑Cola Andina • Annual Report 2017 The operating incomeofeachthecountrieswherethereareCoca-Cola franchises. cision-maker. The reporting byoperatingsegmentandrelateddisclosuresforproductsservices,geographicareas. The NOTE 3–REPORTING BY SEGMENT The Company willassesstheimpactofamendmentonceitbecomeseffective. investigation The “ConsolidatedIFRS 10 Financial Statements” address Amendments toIFRS10Consolidated Financial StatementsandIAS28InvestmentsinAssociatesJoint Ventures (2011) IAS 28“Investment inAssociates andJoint Ventures” “Consolidated andIFRS10 Financial Statements” cognized. The followingoperatingsegmentshavebeendeterminedforstrategicdecisionmakingbasedongeographiclocation: Company’s strategicdecisions. well aspackagingmaterials. The fouroperatingsegmentsconducttheirbusinessesthrough theproductionandsaleofsoft drinksandotherbeverages,as are contribution (2011) A stipulate tribution thorough the established The Company willassesstheimpactofamendmentonceitbecomeseffective. partial in assets Company’s Company amendments operating • • • • a address subsidiary. Operation Paraguay Operation Argentina Operation Brazil Operation Chile a gain that or investigation recognized A are that sale partial that of when or The in provides a segments goods when Board recognized loss of a may to subsidiary. chief The gain goods the is IFRS inconsistency result the of between recognized that date transaction information or operating Directors are between transaction loss 10 may inconsistency of in determined The Consolidated mandatory a is an simplification result recognized when an mandatory decision-maker and investor involves between by involves investor in Management segments the a based between application simplified and a Financial transaction when the business date a and of business on its requirements accounting according the the the has of the associate measures accounting of application Statements transaction requirements associate been (whether presentation involves these (both to of identified or modifications IFRS associates in of and or joint assets in of of a IFRS involves and joint subsidiary a assesses associates 8 these of of subsidiary venture. “Operating IAS as 10 that internal 10 venture. and the IFRS changes and assets 28 do is performance joint Company´s or and to not The Investments IAS and or reports Amendments, not) be that Segments,” constitute ventures. joint not), is amendments, 28 determined IAS to it do (2011) recognizes ventures. be all to 28 not of Board the determined of (2011) Immediate in operating constitute a in the which business, Associates Company´s issued since the of Early generated issued in all Directors accounting establishes the profit IASB segments in a adoption because adoption even treatment business, in September and chief or plans September gain when who loss Joint IASB standards of is based is strategic or an even the generated. of makes permitted. permitted. the loss Ventures in-depth of the plans sale on assets 2014, when 2014, is con- the the de- for re- or a - 92 - 92 - Coca‑Cola Andina • Annual Report 2017 (*) Financialexpenses associatedwithexternal financing for thepurchase of companies, including capital contributions are presented inthisitem. Total of foreignsubsidiaries. the Expenses A summaryoftheCompany’s operatingsegmentsinaccordancetoIFRSisasfollows: of income. Financing Activities Cash flows (usedin)provided by Investing Activities Cash flows (usedin)provided by Activities Cash flows provided by inOperating Segment liabilities, total Capital expenditures andother total accounted for usingtheequitymethod, ventures Carrying amount inassociatesandjoint Segment assets, total Non-current assets Current assets Depreciation andamortization Net incomeof thesegment reported Other income(loss) Income taxexpense associates Share of theentity inincomeof Interest expense, net* Finance expense Finance income Administrative expenses Distribution expenses Cost of sales Net sales FOR THE PERIODENDEDDECEMBER31, country revenues and that income by manages 2017 segment

related and include pays to corporate corporate sales (110,969,260) (328,579,003) (13,537,166) 633,505,196 859,727,183 (91,800,089) (49,677,671) (11,312,509) (16,871,257) (32,594,796) (54,777,094) OPERATION 463,997,113 169,508,083 636,482,010 223,245,173 551,873,458 to 16,073,253 79,451,122 64,480,973 33,789,538 42,688,326 19,057,630 THCH$ CHILE management, unrelated 246,084 expenses, customers (106,504,163) (294,370,581) 107,254,911 194,061,638 (40,344,994) (10,441,173) (17,683,875) (87,032,428) ARGENTINA OPERATION (2,546,937) 105,886,744 553,788,059 which 35,208,659 (4,663,527) 16,891,759 38,904,028 40,347,989 96,532,150 97,529,488 17,648,018 THCH$ 1,368,167 2,116,590 have (243) would been and - assigned (109,095,660) (362,686,353) also (28,192,185) inter-segments, 528,720,895 796,372,514 (64,331,960) (13,719,506) (34,767,713) (43,483,958) OPERATION 393,125,740 135,595,155 663,556,969 132,815,545 603,897,747 44,538,845 (3,437,442) (1,855,039) 98,783,329 91,198,657 53,019,531 27,879,514 BRAZIL THCH$ 6,575,528 (326,201) be substantially to the 264,698,132 (14,476,785) (21,630,238) (85,346,902) Chilean 234,278,288 141,277,230 OPERATION 32,145,115 23,179,968 PARAGUAY (3,522,996) (7,634,395) 30,821,869 14,847,776 17,297,339 14,476,783 30,419,844 10,948,033 as THCH$ (213,025) 250,294 indicated 257,906 (7,612) incurred, soft - - - drinks INTERCOMPANY in ELIMINATIONS independent (16,813,279) the (1,957,875) 16,813,279 THCH$ 1,957,875 segment, consolidated ------to (1,069,024,964) 1,301,626,117 2,114,859,467 CONSOLIDATED since 1,630,849,417 1,848,878,619 (168,831,410) (348,199,321) (192,927,875) (44,025,994) the 119,000,725 (78,345,770) (23,821,746) (51,797,634) (55,220,369) 247,960,348 873,338,796 428,287,321 210,504,402 484,010,050 86,809,069 99,163,891 11,194,375 THCH$ TOTAL statement existence (80,360) Chile is

- 93 - 93 - Coca‑Cola Andina • Annual Report 2017 Financing Activities Cash flows (usedin)provided by Investing Activities Cash flows (usedin)provided by Activities Cash flows provided by Operating Segment liabilities, total Non-current liabilities Current liabilities Capital expenditures andother method, total ventures accounted for usingtheequity Carrying amount inassociatesandjoint Segment assets, total Non-current assets Current assets Depreciation andamortization Net incomeof thesegment reported Other income(loss) Income taxexpense associates Share of theentity inincomeof Interest expense, net* Finance expense Finance income Administrative expenses Distribution expenses Cost of sales Net sales FOR THE PERIODENDEDDECEMBER31, 2016

(117,615,991) (319,213,825) (13,835,936) 647,063,952 896,175,055 (23,591,062) (15,781,118) (13,481,333) (19,763,700) (16,262,215) (52,540,986) OPERATION 509,625,208 137,438,744 644,817,201 251,357,854 540,427,418 71,077,982 47,755,389 23,854,602 43,619,318 4,693,594 THCH$ CHILE 2,426,279 717,947 (279,308,400) 132,642,948 214,090,947 (17,777,191) (37,017,204) (97,788,860) (17,427,278) (80,066,734) ARGENTINA OPERATION 134,624,014 115,280,140 517,059,016 34,691,867 (1,981,066) (8,284,072) 54,162,992 37,029,524 98,810,807 16,445,143 THCH$ 1,095,411 (587,216) 508,195 - - (109,345,331) (359,156,149) (28,704,048) 544,028,991 809,944,368 (36,806,173) (51,873,047) (34,504,760) (44,107,337) OPERATION 413,749,384 130,279,607 659,123,444 150,820,924 590,145,573 29,617,806 (9,322,611) (8,911,762) 67,963,682 51,779,625 53,343,179 25,666,094 BRAZIL THCH$ 5,800,712 (980,529) 278,899,377 (20,050,099) (21,452,613) (78,409,843) 243,615,898 132,005,503 OPERATION 33,203,829 23,045,844 PARAGUAY (9,244,948) (2,704,353) (6,961,838) 30,241,904 16,011,340 17,192,489 35,283,479 11,603,897 THCH$ 9,239,522 318,510 (20,780) 250,478 339,290 - - INTERCOMPANY ELIMINATIONS (2,178,190) THCH$ 2,178,190 ------(1,033,910,027) 1,356,939,720 2,199,109,747 CONSOLIDATED 1,646,367,350 1,777,459,320 (113,916,317) (346,202,795) (183,676,895) (41,713,279) (98,224,525) (30,837,538) (48,807,093) (51,374,971) 223,446,560 937,404,866 419,534,854 145,804,060 552,742,397 92,049,111 77,197,781 97,334,452 THCH$ TOTAL 9,661,692 (262,582) -94 Coca‑Cola Andina • Annual Report 2017 Time depositsdefinedascashandequivalentsaredetailedfollows: 4.1 Cash andcashequivalentsaredetailedasfollows: NOTE 4–CASH AND CASH EQUIVALENTS 12-07-2016 Total 12-29-2017 12-29-2017 12-29-2017 Total cash andcash equivalents Brazilian Real Paraguayan Guaraní Chilean Peso Argentine Peso Euro Dollar Total cash andcash equivalents Mutual funds Time deposits Bank balances Cash Total

PLACEMENT PLACEMENT Time deposits Time Plazo FijoBancoGalicia Banco Santander Banco Santander Banco Santander BY CURRENCY DESCRIPTION INSTITUTION INSTITUTION BY ITEM

Chilean pesos Chilean pesos Chilean pesos Argentine pesos CURRENCY CURRENCY

PRINCIPAL PRINCIPAL THCH$ 2,700,000 7,500,000 400,000 136,242,116 136,242,116 1,853 12.31.2017 21,779,408 80,985,719 19,681,449 96,251,062 10,616,688 29,234,531 6,804,997 6,973,298 THCH$ THCH$ 139,835 17,245 ANNUAL RATE ANNUAL RATE 17.00% % 2.40% 2.40% 2.52%

141,263,880 141,263,880 113,363,280 12.31.2016 26,072,201 48,891,546 27,536,924 53,073,628 5,105,633 8,115,946 THCH$ THCH$ 361,797 12.31.2016 12.31.2017 1,879 4,926 1,879 1,879 THCH$ 10,616,688 M$ 2,700,360 7,516,275 400,053 - 95 - 95 - Coca‑Cola Andina • Annual Report 2017 Money 4.2 tion fortheendofeachperiod: Total mutualfunds Citi InstitutionalLiquidReserves Limited. (C.GAM) Mutual fundScotiabank -Chile Fima fundPrimiumB-Argentina Mutual fundBTG -Chile Mutual fundLarrain Vial -Chile Wester Asset InstitutionalCashReserves -USA Mutual fundBancoSantander -Chile Fima fundSaving Pesos C-Argentina Mutual fundBancoBice-Chile Mutual fundBancoSecurity-Chile Mutual fundCorporativo Banchile-Chile Mutual fundBradesco -Brazil Mutual fundSantander -Brazil Mutual fundItaú-Brazil Fima fundSaving PlusC-Argentina Mutual fundBancoEstado-Chile Mutual fundItaú-Chile market Money Market mutual fund´s shares INSTITUTION

are valued using the share values at the close 96,251,062 12.31.2017 14,242,343 17,645,940 of 5,878,523 1,495,556 5,823,608 6,349,486 3,740,526 8,308,664 5,046,882 4,748,368 4,922,923 8,275,073 9,002,000 THCH$ 771,170 each reporting – – – period. 113,363,280 Below 12.31.2016 46,207,447 14,375,037 5,214,179 6,305,390 1,500,312 3,717,158 8,242,619 4,616,379 6,299,734 6,287,332 9,097,387 1,500,306 THCH$ is a – – – – – descrip- - 96 - 96 - Coca‑Cola Andina • Annual Report 2017 - - (*) OnDecember 27, 2016, Coca-Cola Andinaconfirmed to TheCoca-Cola Company itsdecisiontoparticipateinthe “AdeS” businessand commer b.2 b.1 b) a.1 a) detailed asfollows: are instruments Financial contracts. derivative and funds mutual restricted days), 90 than (more maturities short-term with Below are the financial instruments held by the Company other than cash and cash equivalents. They consist of time deposits ASSETS NOTE 5– a.2 Total OtherFinancialAssets, non-current Subtotal Increase (decrease) inforeign currency exchange Rights inAdeS(*) manufacturing companies Sub total Rights inforward contracts (seenote 20) Total other FinancialAssets, current Subtotal Rights inForward Contracts –Forward (seedetails inNote 20) Purchase of8.5%interest intheBrazilian company UBI3Participações Ltda. for ThCh$4,491,828. Purchase of13.0%interest intheArgentine company Alimentos deSoya S.A. for ThCh$9,661,283. follows: and ThCh$11,923,449 were allocated todistribution rightsofthe“AdeS” products. The rightsintheacquired companies are distributedas implied adisbursement ofUS$39million, ThCh$14,153,111 were allocated tothepurchase ofrightsinthemanufacturingcompany “AdeS” cialize saidproducts inall itsfranchise territories, Asaresult, theoperation materializedonMarch 28, 2017, andpursuant totheagreements, 08.09.2017 09.25.2017 09.25.2017 PLACEMENT 06.13.2017 Subtotal Rights inotherRights companies contracts inforward Rights Non-current 2017 Time deposits 2017 Current portion Rights inForward Contracts Rights OTHER CURRENT AND NON-CURRENT FINANCIALOTHER CURRENT AND NON-CURRENT MATURITY 02.12.2018 02.26.2018 05.28.2018 03.15.2018 Banco Santander -Chile BCI Banco Santander -Chile Vatorantim INSTITUTION Unidad defomento Unidad defomento Unidad defomento Brazilian reais CURRENCY PRINCIPAL THCH$ 7,000,000 1,500,000 5,000,000 20,013 ANNUAL RATE (1,792,859) 74,259,085 12,360,252 14,153,111 61,898,833 12.31.2017 12.31.2017 61,898,833 1.04% 1.36% 8.82% 0.94% THCH$ THCH$ 13,669,142 12.31.2017 14,138,161 7,082,167 1,516,454 5,049,376 THCH$ 21,145 469,019 469,019 - -97 Coca‑Cola Andina • Annual Report 2017 a.2 Rights inForward Contracts a.2 Rights b.1 b) (1) a.3 Funds inGuaranty a.1 a) Total other non-current financialassets Derivative futures contracts (seeNote 20) Total other FinancialAssets, current Funds inguaranty for Rofex derivative operations –Argentina (1) Rights inForward Contracts (seedetails inNote 20) 03.15.2016 11.24.2016 11.24.2016 11.09.2016 10.19.2016 08.31.2016 08.31.2016 06.24.2016 04.22.2016 02.25.2016 01.15.2016 PLACEMENT Corresponds tofundsthatmustberestricted inaccordance withthepartialresults ofderivative operations inArgentina. Subtotal Derivative futures contracts Derivative futures 2016 Non-current portion Time deposits 2016 Current portion DERIVATIVE FUTURESCONTRACTS 03.15.2017 05.08.2017 05.08.2017 02.13.2017 02.24.2017 01.09.2017 01.09.2017 01.09.2017 02.13.2017 01.09.2017 01.04.2017 MATURITY Banco Votoratim -Brazil Banco HSBC-Chile Banco HSBC-Chile Banco HSBC-Chile Banco HSBC-Chile Banco HSBC-Chile Banco HSBC-Chile Banco HSBC-Chile Banco HSBC-Chile Banco HSBC-Chile Banco HSBC-Chile INSTITUTION Unidad defomento Unidad defomento Unidad defomento Unidad defomento Unidad defomento Unidad defomento Unidad defomento Unidad defomento Unidad defomento Unidad defomento CURRENCY Brazilian reais PRINCIPAL 10,000,000 THCH$ 5,000,000 5,000,000 2,000,000 3,000,000 7,000,000 5,000,000 5,000,000 5,000,000 5,000,000 80,180,880 80,180,880 12.31.2016 19,926 THCH$ ANNUAL RATE 8.82% 2.85% 2.85% 3.48% 2.30% 1.24% 1.50% 1.11% 1.25% 1.09% 1.35% % 12.31.2016 53,889,707 60,152,627 10,046,439 THCH$ 5,023,219 5,038,755 2,017,503 3,028,570 7,072,864 5,088,450 5,135,282 6,209,086 5,207,907 1,584,577 4,678,343 21,632 - 98 - 98 - Coca‑Cola Andina • Annual Report 2017 (2) (1) Note 6.1 NOTE 6 – CURRENT NON-FINANCIAL AND NON-CURRENT ASSETS Note 6.2 Total Others Advance payment tosuppliers of property, plant &equipment (2) Fiscal credits Prepaid expenses Judicial deposits(seenote 21.2) S.A. (1) Disbursements of property, plant &equipment onbehalf of Coca-Coladel Valle New Ventures Guarantee deposit(Argentina) Tax credit remainder Prepaid expenses Total Other current assets Corresponds toadvance payments madefor theconstruction ofthenew“DuquedeCaxias”bottlingplantinBrazil. ment thatsubsequently will betransferred totheequityinvestee Coca-Cola del Valle New Ventures S.A. Corresponds todisbursements ofproperty, plant&equipmentperformed by subsidiariesoftheAndinaGroup inproperty, plant&equip- Other current non-financialassets Other non-current, non-financialassets DESCRIPTION DESCRIPTION 47,394,345 12.31.2017 12.31.2017 24,269,901 18,393,546 5,611,861 1,330,693 2,287,051 1,113,154 4,839,465 THCH$ THCH$ 169,120 596,668 6,608 - 35,246,823 12.31.2016 12.31.2016 11,173,966 19,112,974 8,601,209 2,975,706 1,613,989 5,689,560 1,991,167 THCH$ THCH$ 370,188 909,256 11,226 - -99 Coca‑Cola Andina • Annual Report 2017 NOTE 7 – TRADE AND OTHER RECEIVABLES - 100 - The composition of trade and other receivables is detailed as follows:

12.31.2017 12.31.2016 ASSETS BEFORE ALLOWANCE FOR COMMERCIAL DEBTORS ASSETS BEFORE ALLOWANCE FOR COMMERCIAL DEBTORS TRADE AND OTHER RECEIVABLES PROVISIONS DOUBTFUL ACCOUNTS NET ASSETS PROVISIONS DOUBTFUL ACCOUNTS NET ASSETS CURRENT COMMERCIAL DEBTORS THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Trade debtors 157,926,958 (3,521,734) 154,405,224 155,792,966 (3,090,160) 152,702,806 Other current debtors 31,015,390 (2,825,453) 28,189,937 30,923,474 (2,827,678) 28,095,796 Current commercial debtors 188,942,348 (6,347,187) 182,595,161 186,716,440 (5,917,838) 180,798,602 Prepayments suppliers 8,057,544 - 8,057,544 8,776,211 - 8,776,211

Other current accounts receivable 778,901 (146,926) 631,975 1,728,859 (779,318) 949,541 Report • Annual 2017 Andina Coca‑Cola Commercial debtors and other current accounts receivable 197,778,793 (6,494,113) 191,284,680 197,221,510 (6,697,156) 190,524,354 Non-current accounts receivable Trade debtors 58,336 - 58,336 83,881 - 83,881 Other non-current debtors 2,335,322 - 2,335,322 3,443,851 - 3,443,851 Other non-current accounts receivable 2,193 - 2,193 - - - Non-current accounts receivable 2,395,851 - 2,395,851 3,527,732 - 3,527,732 Trade and other receivable 200,174,644 (6,494,113) 193,680,531 200,749,242 (6,697,156) 194,052,086 STRATIFICATION OF PORTFOLIO CURRENT AND NON-CURRENT DEBTORS FROM CREDIT OPERATIONS 12.31.2017 12.31.2016 THCH$ THCH$ Up to date non-securitized portfolio until 30 days 151,275,377 148,694,299 31 and 60 days 908,980 1,463,935 61 and 90 days 1,050,476 567,318 91 and 120 days 331,740 909,985 121 and 150 days 709,400 410,944 151 and 180 days 62,834 155,596 181 and 210 days 82,863 245,947 211 and 250 days 538,081 107,679 More than 250 days 3,025,543 3,321,144 Total 157,985,294 155,876,847 57,000 inParaguay. (2) (1) respectively The The compositionofinventoriesisdetailedasfollows: NOTE 8–INVENTORIES The movementintheallowancefordoubtfulaccountsispresentedbelow: fication. The Total Obsolescence provision (2) Other inventories Work inprogress Spare partsandsupplies Finished goods Raw materials(1) Ending balance Movement Change duetoforeign exchange differences Provision application Bad debt expense Opening balance Total Non-current commercial debtors Current commercial debtors cost Company obsolescence provision isdeterminedaccording tomaturity. in thelastfour years priortothetechnical analysis technical toadjusttheprovision. Inthecase ofraw materialsandfinishedproducts, the finished products and raw materials. Thegeneral standard istoprovision all thosemulti-functional spare partswithoututilityin rotation The obsolescence provision isrelated mainly withtheobsolescence ofspare parts classifiedasinventories andtoalesser extent to used inthepackaging oftheproduct. Approximately 80%iscomposed ofconcentrate andsweeteners usedinthepreparation ofbeverages, aswell ascaps andPET supplies of The inventory number has DETAILS an recognized

approximate of clients as is cost distributed number of sales of as geographically 276,000 of December clients, 131,363,000 (3,535,451) 12.31.2017 19,774,056 32,097,377 78,216,172 4,134,237 31, THCH$ with 676,609 2017 which 65,400 and may 2016, 157,985,294 157,926,958 12.31.2017 12.31.2017 in (1,708,602) 6,494,113 6,697,156 (203,043) (499,399) 2,004,958 have THCH$ THCH$ Chile, 58,336 is ThCh$1,069,024,964 balances 89,200 in in the Brazil, different 144,709,348 (2,913,114) 12.31.2016 24,137,074 34,304,162 81,841,400 64,400 and 6,668,977 THCH$ 670,849 155,876,847 155,792,966 sections ThCh$1,033,910,027, 12.31.2016 12.31.2016 (2,650,520) 6,697,156 1,431,931 5,265,225 4,381,803 (299,352) THCH$ THCH$ in 83,881 Argentina of the strati- and

- 101 - 101 -

Coca‑Cola Andina • Annual Report 2017 Current taxpayablearedetailedasfollows: 9.3 (1) Current taxassetscorrespondtothefollowingitems: 9.2 On 9.1 NOTE 9–CURRENT INCOMETAXES AND DEFERRED main followingchanges: Total Income taxexpense Total Tax credits (1) Monthly provisional payments September nally income taxrecoveries requested by Brazil. Tax credits correspond toincome taxcredits ontraining expenses, purchase ofProperty, plant andequipment, anddonations, andadditio- • • Current tax liabilities Current tax assets Tax Reform 2015, 2016,2017and2018onwards,increasingto21%,22.5%,24%,25.5%27%respectively. The semi-integratedsystemestablishesthegradualincreaseinfirstcategorytaxrateforbusinessyears2014, the Shareholders’Meeting. Andina S.A.byageneralruleestablishedlawthesemi-integratedtaxationsystemapplies,whichwasratified of attributedincome.Taxpayers mayoptfreelytoanyofthetwopaytheirtaxes.IncaseEmbotelladora It establishesanewsystemofsemi-integratedtaxation,whichcanbeusedasanalternativetotheintegratedregime 29, 2014, the DESCRIPTION DESCRIPTION Official Daily Newspaper published Law N°20,780 12.31.2017 12.31.2017 3,184,965 3,184,965 THCH$ THCH$ - - - that amends the Chilean 1,702,296 1,330,379 10,828,593 12.31.2016 12.31.2016 371,917 tax 10,828,593 THCH$ THCH$ regime, with the - 102 - 102 -

Coca‑Cola Andina • Annual Report 2017 (2) (1) The 9.5 The currentanddeferredincometaxexpensesaredetailedasfollows: 9.4 Total liabilitiesnet Subtotal Others Distribution rights Inventories Lease liabilities Assets andliabilitiesfor placement of bonds Coca-Cola incentives (Argentina) Allowance for doubtful accounts Foreign exchange differences (2) Contingency provision Tax Goodwill Brazil Tax losscarried-forwards (1) Post-employment benefits Employee benefits Obsolescence provision Property, plant andequipment Total incometaxexpense Expense (income)for deferred taxes Income (expense) for thecreation andreversal of current taxdifference Current incometaxexpense Other current taxexpense (income) Withholding taxexpense foreign subsidiaries Current taxadjustment previous period Current incometaxexpense Total net movement fiscal year net diary RiodeJaneiro Refrescos Ltda. andwhichfor taxpurposesare recognized inBrazil whenincurred. Corresponds to differed taxes for exchange rate differences generated on the translation of debt expressed in foreign currency in the subsi- Tax lossesmainly associatedwiththesubsidiaryEmbotelladora AndinaChileS.A. InChile taxlosseshave noexpiration date Deferred income taxes expenseIncome tax cumulative TEMPORARY DIFFERENCES balances of temporary ITEM differences that ASSETS THCH$ 92,478,190 give 31,177,351 23,195,957 10,056,534 3,212,981 3,729,093 1,083,010 1,155,542 7,631,498 5,391,796 2,215,341 5,978,377 350,746 451,790 61,155 rise 12.31.2017 - - - to deferred LIABILITIES 125,204,566 214,469,775 121,991,585 THCH$ 163,850,599 47,179,903 1,297,000 1,020,522 tax 200,979 920,772 51,797,634 47,045,014 12.31.2017 40,183,261 4,752,620 assets 4,752,620 6,730,031 THCH$ 137,455 (5,733) ------and liabilities ASSETS THCH$ 96,428,457 36,969,451 31,926,760 1,604,538 2,408,651 9,928,940 2,689,002 1,767,944 1,031,375 4,383,007 1,541,553 2,127,336 49,900 12.31.2016 are - - - - - detailed 48,807,093 44,173,620 12.31.2016 35,902,002 4,633,473 4,633,473 7,645,218 THCH$ 534,392 LIABILITIES 92,008 222,037,259 125,608,802 125,608,802 THCH$ 168,511,436 48,561,147 as 1,010,779 2,124,435 806,529 669,856 353,077 follows: ------103 - 103 -

Coca‑Cola Andina • Annual Report 2017 The compositionofdomesticandforeigntaxexpenseisdetailedasfollows: 9.7 The movementindeferredincometaxaccountsisasfollows: 9.6 Income taxexpense Deferred incometaxexpense Domestic Foreign Deferred incometaxes Current incometaxexpense Domestic Foreign Current incometaxes Ending balance Movements Increase (decrease) duetoforeign currency translation Increase (decrease) indeferred tax Opening Balance Distribution of domestic and foreign tax expense Deferred tax liability movement INCOME TAX ITEM (51,797,634) (47,045,014) (30,258,395) 121,991,585 125,608,802 (16,786,619) (4,752,620) (3,617,217) 12.31.2017 12.31.2017 (4,667,982) (3,417,011) (200,206) THCH$ THCH$ (84,638) (48,807,093) (44,173,620) 125,608,802 130,201,701 (19,421,514) (24,752,106) (4,633,473) (4,592,899) 12.31.2016 12.31.2016 (4,291,287) (6,409,481) 1,816,582 (342,186) THCH$ THCH$ - 104 - -104

Coca‑Cola Andina • Annual Report 2017 Below aretheincometaxratesapplicableineachjurisdictionwhereCompany operates: Below isthereconciliationbetweeneffectivetaxrateandstatutoryrate: 9.8 Paraguay Argentina Brazil Chile Effective rate Tax expense at effective rate Adjustments totaxexpense credits Foreign subsidiariestaxwithholdingexpense andother legaltaxdebitsand Effect of taxmonetary restatement Chileancompanies Effect of taxon excess taxprovision previous periods Non-deductible expenses Non-taxable revenues Permanent differences: Effect of adifferent tax rate in otherjurisdictions Tax expense at legalrate (24.0%) Tax expense at legalrate (25.5%) Net incomebefore taxes Reconciliation of effective rate COUNTRY RECONCILIATION OFEFFECTIVE RATE 25.5% 2017 10% 35% 34% (51,797,634) (43,553,581) 170,798,359 (4,971,103) (3,272,950) 12.31.2017 (7,556,557) (1,465,753) (4,020,729) RATE 9,645,068 THCH$ 125,021 30.6% - 24.0% 2016 10% 35% 34% (33,805,489) (48,807,093) 140,856,204 (5,787,334) (9,214,270) 12.31.2016 (9,647,371) (1,875,343) 6,068,410 (419,761) THCH$ 34.7% 86,731 - - 105 - 105 -

Coca‑Cola Andina • Annual Report 2017 Paraguay Brazil Argentina Chile The Company hasinsurance toprotect itsProperty, plantandequipmentitsinventory from potentiallosses. The geographic distributionof The netbalanceofeachthesecategoriesisdetailedasfollows: (1) Property, plantandequipmentaredetailedbelowattheendofeachperiod: 10.1 NOTE –PROPERTY, 10 PLANT AND EQUIPMENT ITEM Total Other Property, plant andequipment Marketing andpromotional assets Bottles OTHER PROPERTY, PLANT ANDEQUIPMENT Construction inprogress Land Buildings Plant andequipment Information technology Fixed facilities andaccessories Vehicles Leasehold improvements (1) Other Property, plant andequipment Total Balances : RíodeJaneiro, Niteroi, Campos, CaboFrío, Nova Iguazú, EspiritoSanto, Vitoria, partofSãoPaulo andMinasGerais. del Fuego : Santiago, PuenteAlto, Maipú, Renca, Rancagua ySanAntonio, Antofagasta, CoquimboandPuntaArenas. those assetsisdetailedasfollows: Other Property, plant andequipmentiscomposed ofbottles, market assets, furniture andotherminorassets. : Asunción, Coronel Oviedo, CiudaddelEsteandEncarnación. : BuenosAires, Mendoza, Córdoba yRosario, BahíaBlanca, Chacabuco, LaPampa, Neuquén, Comodoro Rivadavia, Trelew, and Tierra

PROPERTY, PLANT ANDEQUIPMENT, 1,337,303,175 12.31.2017 222,101,850 431,876,945 395,823,718 84,118,716 96,990,155 20,697,750 32,990,387 52,587,886 THCH$ 115,768 GROSS 1,320,866,879 12.31.2016 230,355,844 453,359,655 397,539,405 49,986,111 91,961,876 19,683,777 32,616,284 44,629,827 THCH$ 734,100 (677,552,676) CUMULATIVE DEPRECIATION AND (276,043,865) (288,888,898) 12.31.2017 (59,716,002) (16,070,425) (13,400,510) (23,324,621) THCH$ (108,355) 106,934,818 IMPAIRMENT 12,259,967 42,798,282 51,876,569 12.31.2017 THCH$ - - (654,715,994) (262,957,030) (287,488,266) 12.31.2016 (57,282,683) (13,560,865) (12,150,171) (20,733,402) THCH$ (543,577) - - PROPERTY, PLANT ANDEQUIPMENT, 659,750,499 12.31.2017 162,385,848 155,833,080 106,934,818 84,118,716 96,990,155 19,589,877 29,263,265 THCH$ 4,627,325 110,051,139 7,415 38,834,104 64,020,146 12.31.2016 7,196,889 THCH$ NET 666,150,885 12.31.2016 173,073,161 190,402,625 110,051,139 49,986,111 91,961,876 20,466,113 23,896,425 THCH$ 6,122,912 190,523 - 106 - 106 -

Coca‑Cola Andina • Annual Report 2017 10.2 Movements - 107 -

Movements in Property, plant and equipment are detailed as follows:

FIXED FACILITIES AND LEASEHOLD PROPERTY, CONSTRUCTION PLANT AND IT EQUIPMENT, ACCESSORIES, IMPROVEMENTS, PLANT AND IN PROGRESS LAND BUILDINGS, NET EQUIPMENT, NET NET NET VEHICLES, NET NET OTHER EQUIPMENT, NET THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Opening balance at January 1, 2017 49,986,111 91,961,876 173,073,161 190,402,625 6,122,912 20,466,113 23,896,425 190,523 110,051,139 666,150,885 Additions 89,392,003 4,955,929 1,674,734 4,992,508 945,827 (4,161) 1,512,162 13,529 44,451,636 147,934,167

Disposals - - (300,079) (700,973) (1,062,530) - (173,190) - (790,242) (3,027,014) Report • Annual 2017 Andina Coca‑Cola Transfers between items of Property, plant and (41,957,409) - 3,450,060 24,250,647 1,133,684 2,548,441 2,253,061 - 8,321,516 - equipment Depreciation expense - - (5,880,770) (36,026,939) (2,190,107) (2,112,681) (5,303,332) (61,033) (45,746,096) (97,320,958) Increase (decrease) due to foreign currency translation (13,319,346) 72,350 (9,538,737) (20,492,851) (320,634) (1,307,835) 7,441,057 (34,272) (7,670,229) (45,170,497) differences

Other increase (decrease) 17,357 - (92,521) (6,591,937) (1,827) - (362,918) (101,332) (1,682,906) (8,816,084) (1) Total movements 34,132,605 5,028,279 (10,687,313) (34,569,545) (1,495,587) (876,236) 5,366,840 (183,108) (3,116,321) (6,400,386) Ending balance at December 31, 2017 84,118,716 96,990,155 162,385,848 155,833,080 4,627,325 19,589,877 29,263,265 7,415 106,934,818 659,750,499

(1) Mainly correspond to property, plant & equipment write-offs. FIXED - 108 - FACILITIES AND LEASEHOLD PROPERTY, CONSTRUCTION PLANT AND IT EQUIPMENT, ACCESSORIES, IMPROVEMENTS, PLANT AND IN PROGRESS LAND BUILDINGS, NET EQUIPMENT, NET NET NET VEHICLES, NET NET OTHER EQUIPMENT, NET THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Opening balance at January 1, 2016 34,625,004 86,898,529 159,474,930 203,379,934 4,320,656 22,306,759 18,106,705 274,945 111,142,410 640,529,872 Additions 70,421,863 1,248,433 1,201,903 9,833,490 2,666,593 161,395 338,986 - 38,923,620 124,796,283 Disposals - - (4,598) (601,444) - - (3,473) - (54,861) (664,376) Transfers between items of Property, plant and (53,824,861) 1,643,038 15,471,645 16,202,982 1,062,653 1,709,635 9,015,390 - 8,719,518 - equipment

Depreciation expense - - (5,335,475) (35,568,436) (1,910,731) (2,456,511) (4,622,348) (112,805) (44,120,837) (94,127,143) Report • Annual 2017 Andina Coca‑Cola Increase (decrease) due to foreign currency translation (1,235,895) 2,171,876 2,792,916 (1,266,728) 29,148 (1,254,915) 1,783,041 28,383 (3,322,005) (274,179) differences Other increase (decrease) (1) - - (528,160) (1,577,173) (45,407) (250) (721,876) - (1,236,706) (4,109,572) Total movements 15,361,107 5,063,347 13,598,231 (12,977,309) 1,802,256 (1,840,646) 5,789,720 (84,422) (1,091,271) 25,621,013 Ending balance at December 31, 2016 49,986,111 91,961,876 173,073,161 190,402,625 6,122,912 20,466,113 23,896,425 190,523 110,051,139 666,150,885

(1) (1) Mainly correspond to property, plant & equipment write-offs. - 109 - NOTE 11 – RELATED PARTY DISCLOSURES

Balances and main transactions with related parties are detailed as follows:

11.1 Accounts receivable:

11.1.1 Current:

TAXPAYER ID COMPANY RELATIONSHIP COUNTRY OF ORIGIN CURRENCY 12.31.2017 12.31.2016 THCH$ THCH$ Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola 96.891.720-K Embonor S.A. Related to Shareholder Chile Chilean pesos 4,220,936 5,283,410 96.517.210-2 Embotelladora Iquique S.A. Related to Shareholder Chile Chilean pesos 303,866 307,848 76.572.588-7 Coca Cola del Valle New Ventures S.A. Associate Chile Chilean pesos 647,342 180,000 96.919.980-7 Cervecería Austral S.A. Related to director Chile Dollars 16,674 13,827 77.755.610-k Comercial Patagona Ltda. Related to director Chile Chilean pesos - 3,598 Foreign Servicios y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Argentine pesos 181,414 - Total 5,370,232 5,788,683

11.1.2 Non-current:

TAXPAYER ID COMPANY RELATIONSHIP COUNTRY OF ORIGIN CURRENCY 12.31.2017 12.31.2016 THCH$ THCH$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Chilean pesos 156,492 147,682 Total 156,492 147,682 11.2 Accounts payable: - 110 -

11.2.1 Current:

TAXPAYER ID COMPANY RELATIONSHIP COUNTRY OF ORIGIN CURRENCY 12.31.2017 12.31.2016 THCH$ THCH$ Foreign Recofarma do Industrias Amazonas Ltda, Related to Shareholder Brazil Brazilian real 15,891,797 17,345,806 Servicio y Productos para Bebidas Foreign Refrescantes S.R.L. Shareholder Argentina Argentine pesos - 10,275,931 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Chilean pesos 12,458,055 7,284,499 Foreign Leão Alimentos e Bebidas Ltda. Associate Brazil Brazilian real 2,539,052 3,571,514

86.881.400-4 Envases CMF S.A. Associate Chile Chilean pesos 2,807,572 5,338,180 Report • Annual 2017 Andina Coca‑Cola 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Chilean pesos 193,685 304,405 Foreign Alimentos de Soja S.A.U. Related to Shareholder Argentina Argentine pesos 71,276 - Total 33,961,437 44,120,335 11.3 Transactions: - 111 -

COUNTRY OF CUMULATIVE TAXPAYER ID COMPANY RELATIONSHIP ORIGIN DESCRIPTION OF TRANSACTION CURRENCY 12.31.2017 THCH$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of concentrates Chilean pesos 140,609,445 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of advertising services Chilean pesos 1,823,190 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Lease of water fountain Chilean pesos 2,989,115 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of raw materials and other Chilean pesos 2,163,225 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles Chilean pesos 20,865,624 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of raw materials Chilean pesos 12,617,540 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of caps Chilean pesos 477,188 Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola 86.881.400-4 Envases CMF S.A. Associate Chile Purchase services and others Chilean pesos 357,456 86.881.400-4 Envases CMF S.A. Associate Chile Sale services and others Chilean pesos 14,944 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of packaging Chilean pesos 2,960,894 Sale of packaging and raw 86.881.400-4 Envases CMF S.A. Associate Chile materials Chilean pesos 2,942,690 96.891.720-K Embonor S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 42,561,124 96.517.310-2 Embotelladora Iquique S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 2,650,329 Purchase of raw materials and 89.996.200-1 Envases del Pacífico S.A. Related to director Chile materials Chilean pesos 1,676,013 94.627.000-8 Parque Arauco S.A. Related to director Chile Rent of spaces Chilean pesos 90,032 99.279.000-8 Euroamerica Seguros de Vida S.A. Related to director Chile Purchase of insurance policies Chilean pesos 312,231 Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Purchase of concentrates Chilean pesos 196,738,018 Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Refund and other purchases Chilean pesos 5,099,040 Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Purchase of concentrates Argentine pesos 272,541,272 Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Advertising participation payment Argentine pesos 12,584,231 Foreign KAIK Participações Associate Brazil Refund and other purchases Brazilian real 6,614 Foreign Leão Alimentos e Bebidas Ltda. Associate Brazil Purchase of products Brazilian real 104,103 Purchase of concentrate and Foreign Coca-Cola Peru Related to Shareholder Peru marketing recovery U.S. dollar 7,147,534 Foreign Sorocaba Refrescos S.A. Associate Brazil Purchase of products Brazilian real 574,881 89862200-2 Latam Airlines Group S.A. Related to director Chile Sale of products Chilean pesos 652,588 76.572.588-7 Coca Cola Del Valle New Ventures SA Common Shareholder Chile Sale of services and others Chilean pesos 1,444,162 Foreign Trop Frutas do Brasil Ltda. Associate Brazil Purchase of products Brazilian real 317,565 Foreign Alimentos de Soja S.A.U. Related to Shareholder Argentina Payment of fees and services Argentine pesos 538,546 - 112 - COUNTRY OF CUMULATIVE TAXPAYER ID COMPANY RELATIONSHIP ORIGIN DESCRIPTION OF TRANSACTION CURRENCY 12.31.2016 THCH$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of concentrate Chilean pesos 129,660,611 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of advertising services Chilean pesos 7,154,023 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Lease of water fountain Chilean pesos 3,740,351 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of services and others Chilean pesos 2,299,634 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles Chilean pesos 34,144,348 Administrative and commercial 76.572.588.7 Coca-Cola del Valle New Ventures S.A. Associate Chile services Chilean pesos 180,000 96.891.720-K Embonor S.A. Associate Chile Sale of packaging materials Chilean pesos 44,310,169 Report • Annual 2017 Andina Coca‑Cola 96.517.310-2 Embotelladora Iquique S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 2,749,506 Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Sale of finished products Chilean pesos 115,706,386 Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Purchase of concentrates Brazilian real 25,675,184 Foreign Leão Alimentos e Bebidas Ltda. Related to Shareholder Brazil Advertising participation payment Brazilian real 11,658,142 Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Associate Argentina Purchase of concentrates Brazilian real 114,427,713 Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Purchase of concentrates Argentine pesos 14,680,603 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Advertising participation payment Argentine pesos 1,751,011 Foreign Coca-Cola Peru Related to director Peru Purchase of raw materials Chilean pesos 4,188,812

11.4 Key management compensation

Salaries and benefits paid to the Company’s key management personnel including directors and managers are detailed as follows:

DESCRIPTION 12.31.2017 12.31.2016 THCH$ THCH$ Executive wages, salaries and benefits 6,454,846 6,255,806 Director allowances 1,513,100 1,492,088 Termination of employment contracts benefits - 79,027 Accrued benefit in last five years and paid during fiscal year 334,477 314,288 Total 8,302,423 8,141,209 Employee benefitsaredetailedasfollows: EMPLOYEENOTE –CURRENT AND 12 NON-CURRENT BENEFITS Total Non-current Current Total Indemnities for years of service Employee remuneration payable Accrued vacations DESCRIPTION 44,241,998 44,241,998 35,955,643 15,186,368 20,769,275 12.31.2017 8,286,355 8,286,355 THCH$ THCH$ 43,811,176 43,811,176 35,653,431 15,824,809 19,828,622 12.31.2016 8,157,745 8,157,745 THCH$ THCH$ - 113 - -113 Coca‑Cola Andina • Annual Report 2017 Personnel expensesincludedintheconsolidatedstatementofincomeareasfollows: 12.2 (1) Mortalityassumptiontablesprescribed for useby theChileanFinancialMarket Commission(CMF). The actuarialassumptionsusedaredetailedasfollows: 12.1.1 Assumptions The movementsofpost-employmentbenefitsthataredeterminedasstatedinNote 2aredetailedasfollows: 12.1 Total Other personnel expenses Severance andpost-employment benefits Employee benefits Wages andsalaries Retirement ageof men Retirement ageof women Mortality rate (1) Turnover rate Expected salaryincrease rate Discount rate Total Benefits paid Net actuariallosses Interest costs Service costs Opening balance

Personnel expenses Indemnities for years of service ASSUMPTIONS DESCRIPTION MOVEMENTS 287,458,526 215,715,214 12.31.2017 12.31.2017 14,205,259 50,127,117 7,410,936 65 years 60 years RV-2009 THCH$ 5.4% 2.0% 2.7% (1,369,991) 12.31.2017 (530,059) 1,727,905 8,286,355 8,157,745 300,755 THCH$ 288,293,137 218,944,639 12.31.2016 12.31.2016 10,921,843 50,174,153 8,252,502 65 years 60 years RV-2009 THCH$ (2,850,517) 12.31.2016 2,059,799 8,157,745 8,230,030 536,105 182,328 5.4% 2.0% 2.7% THCH$ -114 Coca‑Cola Andina • Annual Report 2017 (3) (2) (1) Investments inassociatesusingequitymethodofaccountingaredetailedasfollows: 13.1 METHOD NOTE –INVESTMENTS 13 IN ASSOCIATES ACCOUNTED FOR THE USING EQUITY 12.3 Total 76.572.588-7 Foreign Foreign Foreign Foreign Foreign 86.881.400-4 Number of employees NUMBER OFEMPLOYEES (UNAUDITED) Number of average employees TAXPAYER ID Balances in theirrespective franchise territories. beverages undertrade namesof The Coca-Cola Company, thatAndinaandCoca-Cola Embonor S.A. are authorizedtomarket anddistribute Coca-Cola del Valle New Ventures S.A., whosemainpurposewill bethedevelopment andproduction ofjuices, waters andnon-carbonated On January28, 2016, Embotelladora AndinaS.AalongwithCoca-Cola deChileS.A. andCoca-Cola EmbonorS.A., formed thecompany representative oneachentity’s Board ofDirectors. In thesecompanies, regardless of thepercentage ofownership interest held, theCompany hassignificant influence, a given thatithas cant influence, given thatthere was notamajority vote oftheBoard ofDirectors tomake strategic businessdecisions. In thesecompany, regardless ofthepercentage ofownership interest, itwas determinedthatnocontrolling interest was held, only a signifi- Number of Employees (unaudited) New Ventures S.A. (3) Coca Coladel Valle Ltda. (2) Trop Frutas doBrasil S.A. Sorocaba Refrescos Ltda. SRSA Participações Ltda. (2) Kaik Participações Bebidas Ltda. (2) Leão Alimentos e Envases CMFS.A. (1) NAME INCORPORATION COUNTRY OF Brazil Brazil Brazil Brazil Brazil Chile Chile Chilean peso real Brazilian real Brazilian real Brazilian real Brazilian real Brazilian Chilean peso FUNCTIONAL CURRENCY 12.31.2017 15,924 15,784 86,809,069 15,260,971 23,079,130 22,163,333 18,528,567 12.31.2017 6,359,428 1,228,350 THCH$ 189,290 CARRYING VALUE 77,197,781 26,091,690 19,559,114 18,693,851 12.31.2016 5,160,751 6,069,003 1,364,444 THCH$ 258,928 12.31.2017 35.00% 40.00% 40.00% 50.00% 11.32% 12.31.2016 8.82% 7.52% PERCENTAGE INTEREST 16,296 16,009 % 12.31.2016 35.00% 40.00% 40.00% 50.00% 11.32% 8.82% 7.52% % - 115 - -115 Coca‑Cola Andina • Annual Report 2017 The movementofinvestmentsinassociatesaccountedforusingtheequitymethodisshownbelow: 13.2 13.3 Reconciliation13.3 of share of profit in investments in associates: The Ending Balance Increase (Decrease) duetoforeign currency translation differences Unrealized income Share inoperating income Dividends received Alimentos eBebidasLtda.). Other investment increases inassociates(CapitalContribution Leão Income Statement Balance Amortization of Fair Value in Vital JugosS.A. (containers and/orinventories) the endof period, presented asadiscount intherespective asset account Unrealized earningsininventory acquired from associatesandnot sold at Share of profit of investment accounted for usingtheequity method main • • • • • Movement Refrescos S.A.didnotdistributedividends. During thetwelvemonthsperiodendedDecember31,2017andfiscalyear2016,Sorocaba dends, respectively. Ofthedividendsdeclaredforyear2017onlyThCh$770,045havebeenpaid. During thefiscalyear2017and2016,EnvasesCMFS.A.declaredThCh$1,540,090ThCh$745,806indivi- Ventures S.A.intheamountofThCh$10,185,000(ThCh$5,323,693asDecember31,2016). During fiscalyear2017,EmbotelladoraAndinaS.A.hasmadecapitalcontributionstoCoca-Cola delValle New direct ownershipinterestinthatcompanythroughacapitalcontributionofThCh$6,157,150. me partofbottlergrouptheCoca-Cola systeminBrazil.Asaresult,Rio deJaneiro Refrescos Ltda. holdsa7.52% During fiscalyear2016,becauseofcorporaterestructuring,theBraziliancompanyTrop Frutas doBrasilLtda., beca- ThCh$5,385,161 andThCh$6,105,732,respectively. Janeiro Refrescos Ltda. participatedinthesecapitalincreasesregardingitsownershipinterestforamountsof During fiscalyear2017and2016,LeãoAlimentoseBebidasLtda. carriedoutcapitalincreases.Riode movements for OPENING BALANCE the DETAILS twelve- DETAILS

months ended December 2017 and fiscal 86,809,069 (5,436,391) (1,540,090) 15,570,161 12.31.2017 77,197,781 (1,097,968) 12.31.2017 THCH$ year 932,340 (80,360) 85,268 932,340 THCH$ 85,268 ended December 31, 2016, 77,197,781 17,586,575 12.31.2016 54,190,546 (262,582) 12.31.2016 5,689,436 (750,806) (744,612) THCH$ 396,764 396,764 THCH$ are 85,266 85,266 the following: - 116 - -116 Coca‑Cola Andina • Annual Report 2017 13.4 Summary financial information of associates: - 117 -

The following table presents summarized information regarding the Company´s equity investees as of December 31, 2017:

SOROCABA KAIK PARTICIPACOES SRSA PARTICIPACOES LEAO ALIMENTOS E TROP FRUTAS DO BRASIL COCA-COLA DEL VALLE ENVASES CMF S.A. REFRESCOS S.A. LTDA. LTDA. BEBIDAS LTDA. LTDA. NEW VENTURES S.A. THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Total assets 74,308,406 111,697,833 10,851,460 473,226 282,895,158 88,327,243 48,190,779 Total liabilities 36,654,412 54,000,005 35 - 79,689,080 11,407,361 4,594,3080 Total revenue 49,924,142 52,507,920 (137,002) 469,509 198,216,570 3,345,146 -

Net income (loss) of 2,405,060 (1,541,788) (137,002) 469,509 (157,266) 1,927,448 (248,532)

associate Report • Annual 2017 Andina Coca‑Cola Reporting date 12/31/2017 12/31/2017 12/31/2017 12/31/2017 12/31/2017 12/31/2017 11/30/2017

(1) Intangible assetsotherthangoodwillasoftheendeachreportingperiodaredetailedfollows: 14.1 NOTE 14 –INTANGIBLE ASSETS AND GOODWILL Chile (excluding Metropolitan Region, RancaguaandSanAntonio) (1) Distribution rights and LeãoAlimentos eBebidasLtda.) Brazil (RiodeJaneiro, EspiritoSanto, Ribeirão Preto andtheinvestments inSorocaba Software Paraguay Water rights Total Argentina (NorthandSouth) Total amortized inthetermofagreement whichis4years. Such distributionrightsare composed inthefollowing mannerandare notsubjecttoamortization:except for theMonsterrightsthatare bution rights, andinconjunction withtheassetsthatare partofthecash-generating units, are annually subjectedtotheimpairmenttest. renewals thatCoca-Cola haspermanently doneontheserights, allow qualifyingthemasindefinite contracts. Theseproduction anddistri- combinations. Production anddistributioncontracts are renewable for periodsof5years withCoca-Cola. The nature ofthebusinessand Distribution rightsresult from thevaluation process atfairvalue oftheassetsandliabilitiescompanies acquired inbusiness Correspond tothecontractual rightstoproduce anddistributeCoca-Cola products incertain partsofArgentina, Brazil, ChileandParaguay. DETAIL Intangible other assets than goodwill

684,517,558 656,411,004 AMOUNT 27,595,084 GROSS THCH$ 511,470 DISTRIBUTION RIGHTS DISTRIBUTION AMORTIZATION (21,244,680) CUMULATIVE 12.31.2017 (21,087,741) THCH$ (116,387) (40,552) 663,272,878 656,294,617 AMOUNT THCH$ 6,507,343 NET 470,918 700,397,809 674,920,063 AMOUNT 24,954,998 GROSS THCH$ 522,748 656,411,004 305,086,276 187,695,738 162,825,074 12.31.2017 THCH$ 803,916 AMORTIZATION (19,401,747) CUMULATIVE 12.31.2016 (19,349,917) THCH$ (51,830) 207,469,759 - 674,920,063 301,127,305 165,295,516 12.31.2016 1,027,483 THCH$ 680,996,062 674,920,063 AMOUNT THCH$ 5,605,081 NET 470,918 - 118 - -118 Coca‑Cola Andina • Annual Report 2017 The movement and balances of identifiable intangible assets are detailed as follows: - 119 -

01.01.2017 TO 12.31.2017 01.01.2016 TO 12.31.2016 DISTRIBUTION DISTRIBUTION DETAILS RIGHTS RIGHTS SOFTWARE TOTAL RIGHTS RIGHTS SOFTWARE TOTAL THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Opening balance 674,920,063 470,918 5,605,081 680,996,062 658,625,624 476,643 6,564,388 665,666,655 Additions (1) 11,923,449 (1) - 2,907,715 14,831,164 821,577 (2) 975 2,842,314 3,664,866 Amortization (116,387) - (1,842,933) (1,959,320) - (4,575) (3,207,309) (3,211,884) Other increases (decreases) (3) (30,432,508) - (162,520) (30,595,028) 15,472,862 (2,125) (594,312) 14,876,425

Total 656,294,617 470,918 6,507,343 663,272,878 674,920,063 470,918 5,605,081 680,996,062 Report • Annual 2017 Andina Coca‑Cola

(1) Corresponds to distribution rights paid in Argentina, Paraguay and Chile resulting from the transaction in which The Coca-Cola Company acquired the “AdeS” business described in previous notes. (2) During the second quarter of 2016 Embotelladora Andina S.A. began distributing Monster products (3) Mainly corresponds to the foreign currency effect of converting foreign subsidiaries’ distribution rights into the presentation currency. Management unit (CGU). nominal discountratebeforetaxesisusedaccordingtothefollowing table: bution ness that for possible Model, Paraguay - Brazil:(investment intheassociateLeãoAlimentosS.A.) - Brazil:(investment intheassociateSorocaba) - Brazil(Ipiranga territories) - Brazil(state ofRiodeJaneiro andEspiritoSanto) - ArgentinaSouth - ArgentinaNorth - Regions inChile(excludingMetropolitan Region, provinceofRancagua andprovinceofSan Antonio) - are composedby: Management carriesouttheannualgoodwillimpairmenttestas of December31eachyearforCGU. The a. Discount rate: 14.2.2 the an In Goodwill 14.2.1 Measurement ofrecoverable goodwillvalue Goodwill 14.2 of theacquiredsubsidiaryatacquisitiondate. Argentina Brazil Chile Paraguay order impairment which recoverable includes real operating rights which Goodwill to impairment. discount Main assumptionsused inthe annual test: is is Coca-Cola check considered annually different is reviews allows performance loss values geographically if rate goodwill is distribution estimating reviewed recognized These business of cash applied as the the has generating CGU, indicators, signs excess in monitored suffered but performance a for rights the may discount management its acquisition the annual recoverable units include an movements have excess at impairment rate the of test been based of the new cost CGU according considers carried the value acquired. operations on in legal over book or loss, the geographic is out group fair dispositions, value competition, checked the to the 17.1% in 2017 These value 9.6% 7.2% 9.1% in the discounted company of December amount Chile, cash risk of segments. during cash the level generating Brazil, changes or of compares generating group´s cash 2017 the the anticipated of DISCOUNT RATE Argentina asset sale the Goodwill flow was in ownership units its CGU the of over method estimated units book a economic significant periods, that its in and is

or value recoverable the monitored correspond as interest groups Paraguay. with the country if with environment there part most the of its in 20.5% 11.9% 10.7% of 2016 by amount. cash identifiable 7.9% recoverable where Impairment Capital are to appropriate the operating specific facts generating cash-generating affecting it Asset To operates. indicating determine territories value, net segment of method. Pricing distri- assets units busi- and A a

- 120 - -120

Coca‑Cola Andina • Annual Report 2017 and For thepurposeofimpairmenttest,sensitivitieswereconductedinthesecriticalvariablesaccordingtofollowing: to determinethenetpresentvalueofprojectedflows. drinks torical Movement inGoodwill asofDecember31,2017and2016 isdetailedasfollows: 14.2.4 generating Despite margin projectionsandinlinewiththemarkets’history. AsofDecember31,2017,therehavebeennosignsimpairment. As 14.2.3 Conclusions Financial b. Other assumptions projection. Total Paraguayan operation Argentine operation Brazilian operation Chilean operation Total Paraguayan operation Argentine operation Brazilian operation Chilean operation OPERATING SEGMENT OPERATING SEGMENT a 2.5% result • • flows category Discount rate:correspondstoanincreaseordecreaseof150bpsinthediscountratefuturecashflows EBITDA Margin: correspondstoanincreaseordecreaseofup150bpstheEBITDAmarginoperations. the Goodwill by business segment andcountry projections depending of units In deterioration of the this the and develop annual sense, CGU, up on to to test determine the their the and of 7% for 102,919,505 level the variables 95,835,936 approved 01.01.2016 01.01.2017 for 71,960,960 81,145,834 operations, 7,651,751 7,720,202 8,503,023 7,298,133 5,972,515 8,503,023 2017, THCH$ THCH$ macroeconomic of the the per no less of net budgets. capita impairments greater recovery developed value consumption In sensitivity of conditions ADDITIONS ADDITIONS values future THCH$ THCH$ this categories have ------sense, from cash been in of experienced these a the such the flows identified conservative DISPOSALS OR DISPOSALS OR IMPAIRMENTS IMPAIRMENTS impairment products projections THCH$ THCH$ as are juices ------modelled by in at any the growth and test each correspond PRESENTATION CURRENCY PRESENTATION CURRENCY of economies FUNCTIONAL CURRENCY FUNCTIONAL CURRENCY water. DIFFERENCES WHERE DIFFERENCES WHERE IS DIFFERENT FROM IS DIFFERENT FROM FOREIGN CURRENCY FOREIGN CURRENCY were the considering operation rate TRANSLATION TRANSLATION (9,321,288) (7,636,754) (1,747,687) (1,299,544) CGUs 7,083,569 9,184,874 (353,618) (384,990) THCH$ THCH$ higher Perpetuity is used, to of assuming discount are - - than the the which set countries main growth the beyond rates conservative book reach variables rates 102,919,505 93,598,217 applied 12.31.2016 12.31.2017 values 73,509,080 81,145,834 the where 6,913,,143 3% 5,972,515 4,672,971 7,298,133 8,503,023 8,503,023 THCH$ THCH$ between fifth for of of EBITDA the in the the year assets. order cash his- soft 2% of

- 121 - 121 - Coca‑Cola Andina • Annual Report 2017 Liabilities aredetailedasfollows: NOTE FINANCIAL –OTHER 15 CURRENT AND LIABILITIES NON-CURRENT Total Leasing agreements Bonds payable Bank loans NON-CURRENT Total Leasing agreements Derivative contract obligations(seenote 20) Deposits inguarantee Bonds payable Bank loans CURRENT 675,767,201 648,228,554 67,981,405 12.31.2017 12.31.2017 14,481,105 13,057,542 13,849,504 20,156,295 31,470,003 2,060,325 THCH$ THCH$ 445,278 721,570,587 685,684,184 64,800,570 12.31.2016 12.31.2016 18,149,706 17,736,697 13,446,077 26,729,828 20,609,887 1,229,354 2,785,424 THCH$ THCH$ - 122 - -122

Coca‑Cola Andina • Annual Report 2017 3) 2) 1) The fairvalueoffinancialassetsandliabilitiesasDecember31,20172016ispresentedbelow: companies (3) Accounts payable from related payable (3) Trade andother accounts Leasing agreements (3) Leasing agreements (3) Bonds payable (2) Bank loans(1) (see note 20) Derivative contract obligations Deposits inguarantee (3) Bonds payable (2) Bank loans(1) related companies(3) Accounts receivable from receivable (3) Trade andother accounts Other financialassets (3) related companies(3) Accounts receivable from Other financialassets (3) Cash andcashequivalents (3) The fairvalue approximates bookvalue considering thenature andtermoftheobligations. The fairvalue ofcorporate bondsisclassifiedasLevel 1fair value measurements basedonquotedprices for theCompany’s obligations. measurements. The fairvalues are basedondiscounted cash flows usingmarket-based discount rates asof year-end andare Level 2 fair value NON-CURRENT CURRENT BOOK VALUE 257,519,477 648,228,554 191,284,680 136,242,116 12.31.2017 12.31.2017 33,961,437 14,481,105 13,057,542 13,849,504 20,156,295 31,470,003 14,138,161 74,259,085 2,060,325 5,370,232 THCH$ THCH$ 445,278 156,492 257,519,477 722,044,324 191,284,680 136,242,116 12.31.2017 12.31.2017 FAIR VALUE 33,961,437 14,481,105 11,588,575 13,849,504 22,484,452 31,006,898 14,138,161 75,259,085 2,060,325 5,370,232 THCH$ THCH$ 445,278 156,492 BOOK VALUE 242,836,356 685,684,184 190,524,354 141,263,880 12.31.2016 12.31.2016 44,120,335 18,149,706 17,736,697 13,446,077 26,729,828 20,609,887 55,474,284 80,180,880 1,229,354 2,785,424 5,788,683 THCH$ THCH$ 147,682 242,836,356 752,078,561 190,524,354 141,263,880 12.31.2016 12.31.2016 FAIR VALUE 44,120,335 18,149,706 14,365,502 13,446,077 29,338,170 20,932,073 55,474,284 80,180,880 1,229,354 2,785,424 5,788,683 THCH$ THCH$ 147,682 - 123 - 123 -

Coca‑Cola Andina • Annual Report 2017 15.1.1 Bank obligations, current - 124 -

MATURITY TOTAL CREDITOR INDEBTED ENTITY ENTITY TYPE EFFECTIVE NOMINAL UP TO 90 DAYS AT AT TAX ID, NAME COUNTRY TAX ID, NAME COUNTRY CURRENCY AMORTIZATION RATE RATE 90 DAYS TO 1 YEAR 12.31.2017 12.31.2016 M$ M$ THCH$ THCH$ Banco Bilbao 91.144.000-8 Embotelladora Andina S.A. Chile 97032000-8 Viscaya Chile Chilean Monthly 3.64% 3.64% - 300,000 300,000 - Argentaria, pesos Unidad de 96.705.990-0 Envases Central S.A. Chile 97.006.000-6 Banco BCI Chile fomento Semiannually 2.13% 2.13% - 709,794 709,794 655,752 Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola Banco de Foreign Embotelladora del Atlántico Argentina Foreign la Nación Argentina Argentine Monthly 20.00% 20.00% 75,863 9,889,270 9,965,133 - S.A. Argentina pesos

Embotelladora del Atlántico Banco Galicia Argentine Foreign S.A. Argentina Foreign y Bs. As. Argentina pesos Monthly 20.00% 20.00% 55,994 3,296,423 3,352,417 336,062

Banco de Foreign Embotelladora del Atlántico Argentina Foreign la Nación Argentina Argentine Monthly 15.25% 15.25% - - - 39,942 S.A. Argentina pesos Embotelladora del Atlántico BBBVA Banco Argentine Foreign S.A. Argentina Foreign Frances Argentina pesos Monthly 15.25% 15.25% - - - 34,861 Rio de Janeiro Refrescos Foreign Ltda. Brazil Foreign Banco Itaú Brazil Dollars Monthly 2.992% 2.992% - - - 12,017,942 Rio de Janeiro Refrescos Brazilian Foreign Ltda. Brazil Foreign Banco Itaú Brazil real Monthly 7.48% 7.48% 11,688 286,768 298,456 - Rio de Janeiro Refrescos Banco Brazilian Foreign Ltda. Brazil Foreign Santander Brazil real Monthly 6.63% 6.63% 592,682 766,789 1,359,471 954,556 Rio de Janeiro Refrescos Brazilian Foreign Ltda. Brazil Foreign Banco Itaú Brazil real Quarterly 7.15% 7.15% 278,803 1,332,944 1,611,747 2,839,713 Rio de Janeiro Refrescos Brazilian Foreign Ltda. Brazil Foreign Banco Itaú Brazil real Semiannually 4.50% 4.50% 1,905,762 635,254 2,541,016 3,731,059 Rio de Janeiro Refrescos Brazilian Foreign Ltda. Brazil Foreign Banco Itaú Brazil real Semiannually 6.24% 6.24% - 11,331,969 11,331,969 - Total 31,470,003 20,609,887 15.1.2 Bank obligations, non-current December 31, 2017 - 125 -

MATURITY

INDEBTED CREDITOR ENTITY ENTITY MORE 2 MORE 3 MORE 4 1 YEAR YEARS YEARS YEARS TYPE EFFECTIVE NOMINAL UP TO UP TO 3 UP TO 4 UP TO 5 MORE 5 AT TAX ID NAME COUNTRY TAX ID NAME COUNTRY CURRENCY AMORTIZATION RATE RATE 2 YEARS YEARS YEARS YEARS YEARS 12.31.2017 THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Envases Unidad de 96.705.990-0 Central S.A. Chile 97.006.000-6 Banco BCI Chile fomento Semiannually 2.1% 2.1% 2,092,245 - - - - 2,092,245 Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola Rio de Janeiro Brazilian Foreign Refrescos Ltda. Brazil Foreign Alfa Brazil real Monthly 7.48% 7.5% 125,461 125,461 125,461 627,305 - 1,003,688 Rio de Janeiro Brazilian Foreign Refrescos Ltda. Brazil Foreign Itaú Brazil real Monthly 6.6% 6.6% 504,700 197,779 44,639 128,887 - 876,005 Rio de Janeiro Brazilian Foreign Refrescos Ltda. Brazil Foreign Santander Brazil real Monthly 7.2% 7.2% 1,593,608 1,202,096 663,779 2,449,851 - 5,909,334 Rio de Janeiro Brazilian Foreign Refrescos Ltda. Brazil Foreign Banco Itaú Brazil real Quarterly 4.5% 4.5% 3,176,270 - - - - 3,176,270 Total 13,057,542

15.1.2 Bank obligations, non-current December 31, 2016

MATURITY

INDEBTED CREDITOR ENTITY ENTITY MORE 2 MORE 3 MORE 4 1 YEAR YEARS YEARS YEARS TYPE EFFECTIVE NOMINAL UP TO UP TO 3 UP TO 4 UP TO 5 MORE 5 AT TAX ID NAME COUNTRY TAX ID NAME COUNTRY CURRENCY AMORTIZATION RATE RATE 2 YEARS YEARS YEARS YEARS YEARS 12.31.2016 THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Rio de Janeiro Banco Brazilian Foreign Refrescos Ltda. Brazil Foreign Itaú Brazil real Monthly 6.63% 6.63% 1,485,327 547,219 431,726 - - 2,464,272 Rio de Janeiro Banco Brazilian Foreign Refrescos Ltda. Brazil Foreign Santander Brazil real Monthly 7.15% 7.15% 1,985,981 3,042,278 2,832,515 158,490 - 8,019,264 Rio de Janeiro Banco Brazilian Foreign Refrescos Ltda. Brazil Foreign Itaú Brazil real Quarterly 4.50% 4.50% 4,213,075 2,106,537 - - - 6,319,612 Envases 97.080.000- Banco Unidad de 96.705.990-0 Central S.A. Chile K Bice Chile fomento Semiannually 3.43% 3.43% 933,549 - - - - 933,549 Total 17,736,697 15.2.1 Bonds payable - 126 -

CURRENT NON-CURRENT TOTAL COMPOSITION OF BONDS PAYABLE 12.31.2017 12.31.2016 12.31.2017 12.31.2016 12.31.2017 12.31.2016 THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Bonds (face value) 20.547.117 27.112.986 651.459.940 690.150.930 672.007.057 717.263.916 Expenses of bond issuance and discounts on placement (390.822) (383.158) (3.231.386) (4.466.746) (3.622.208) (4.849.904) Net balance presented in statement of financial position 20.156.295 26.729.828 648.228.554 685.684.184 668.384.849 712.414.012 Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola 15.2.2 Current and non-current balances - 127 -

Obligations with the public correspond to bonds in UF issued by the parent company on the Chilean market and bonds in US dollars issued by the parent company on the international market:

FACE UNIT OF INTEREST FINAL INTEREST DATE AMORTIZATION OF SERIES AMOUNT ADJUSTMENT RATE MATURITY PAYMENT CAPITAL 12.31.2017 12.31.2016 BONDS, CURRENT PORTION THCH$ THCH$ CMF Registration N°640 CMF 08.23.2010 A - UF 3.0% 08-15-2017 Semiannually 02-15-2017 - 6,660,552 CMF Registration N°254 CMF 06.13.2001 B 2,333,646 UF 6.5% 06-01-2026 Semiannually 06-01-2018 6,071,687 5,656,922

CMF Registration N°641 08.23.2010 C 1,500,000 UF 4.0% 08-15-2031 Semiannually 02-15-2021 597,049 587,020 Report • Annual 2017 Andina Coca‑Cola CMF Registration N°759 08.20.2013 C 750,000 UF 3.5% 08-16-2020 Semiannually 02-16-2018 6,959,157 6,929,828 CMF Registration N°760 08.20.2013 D 4,000,000 UF 3.8% 08-16-2034 Semiannually 02-16-2032 1,502,299 1,487,844 CMF Registration N°760 04.02.2014 E 3,000,000 UF 3.75% 03-01-2035 Semiannually 09-01-2032 998,409 978,933 Bonds USA - 575,000,000 US$ 5.0% 10-01-2023 Semiannually 10-01-2023 4,418,516 4,811,887 Total current portion 20,547,117 27,112,986 BONDS NON-CURRENT PORTION CMF Registration N°254 CMF 06.13.2001 B 2,333,646 UF 6.5% 06-01-2026 Semiannually 06-01-2018 56,795,423 61,486,857 CMF Registration N°641 08.23.2010 C 1,500,000 UF 4.0% 08-15-2031 Semiannually 02-15-2021 40,197,210 39,521,970 CMF Registration N°759 08.20.2013 C 750,000 UF 3.5% 08-16-2020 Semiannually 02-16-2018 13,399,069 19,760,985 CMF Registration N°760 08.20.2013 D 4,000,000 UF 3.8% 08-16-2034 Semiannually 02-16-2032 107,192,560 105,391,920 CMF Registration N°760 04.02.2014 E 3,000,000 UF 3.75% 03-01-2035 Semiannually 09-10-2032 80,394,428 79,043,948 Bonds USA - 575,000,000 US$ 5.0% 10-01-2023 Semiannually 10-01-2023 353,481,250 384,945,250 Bonds non-current portion 651,459,940 690,150,930

Accrued interest included in the current portion of bonds totaled ThCh$8,105,642 and ThCh$8,646,270 at December 31, 2017 and December 31, 2016, respectively.

13, 2001. Series capital asofDecember31,2017 isUF2,333million. 3.7 The Restrictions regarding the issuance ofbondsfor afixed amount registered under number 254. For purposesofthecalculationcovenants,amountEBITDAthatwasagreedoneachbondissueisincluded. 15.2.5.2 On 15.2.5.1 15.2.5 BBB+: Fitch ChileClasificadoradeRiesgoLimitada rating. BBB: Standard&Poors rating The ratingofbondsissuedontheinternationalmarketasDecember31,2017,isfollowing: AA: Fitch ChileClasificadoradeRiesgoLimitada rating AA: ICRCompañía ClasificadoradeRiesgoLtda. rating The bondsissuedontheChileanmarkethadfollowingratingasofDecember31,2017: 15.2.3 maturing onOctober1,2023.Thesebondsdonothavefinancial restrictions. 15.2.4 06.13.2001 CMF Registration N°254 Total Bonds USA 04.02.2014 CMF Registration N°760 08.20.2013 CMF Registration N°760 08.20.2013 CMF Registration N°759 08.23.2010 CMF Registration N°641 million September outstanding B was Non-current maturities Market rating in issued bonds 26, series Restrictions regarding bondsplaced inthe local market. Restrictions regarding bondsplaced abroad. Restrictions 2013, with were as charge Andina placed of December SERIES to with D B C C E - issued the final bonds MORE THAN 1 TO2 MORE THAN 31, 12,814,703 a maturity 6,115,168 6,699,535 bond 2017, THCH$ line in is registered - - - - the Series in the U.S. MORE THAN 2 TO3 MORE THAN year B 13,212,189 with Market for 6,512,654 6,699,535 THCH$ 2026 a the nominal YEAR OFMATURITY (Bonds - - - - at Securities a 6.50% MORE THAN 3 TO4 MORE THAN amount USA) 10,590,269 6,935,977 3,654,292 Registered annual THCH$ for of US$575 up - - - - interest to under UF 614,842,779 million 353,481,250 107,192,561 MORE THAN 5MORE THAN rate. 37,231,622 80,394,428 36,542,918 4 number million, THCH$ The at - balance a 254 of coupon which dated 651,459,940 353,481,250 107,192,561 of TOTAL NON- 56,795,421 13,399,070 80,394,428 40,197,210 12.31.2017 CURRENT rate outstanding amount THCH$ September of 5.0% UF

- 128 - -128

Coca‑Cola Andina • Annual Report 2017 well financial The Financial Position. not under the assetbalancesofderivativefinancialinstruments,takentocoverexchangerateorinterestrisksonliabilities non-current Financial Assets”oftheIssuer’sConsolidated StatementofFinancial Position. taken or Consolidated Assets” Regarding B, the Series Issuer issubject to the following restrictions: Unsecured The As ofDecember31,2017,indebtednesslevelis0.84timesConsolidated Equity. Chilean pesos): Consolidated Equity (-) Othernon-current financialassets (hedgederivatives) Other non-current financialliabilities Other current financialliabilities other secured breakdown as following • • • •

to “Other those

1.30 timesoftheissuer’sunsecuredconsolidatedliabilities. Maintain consolidatedassetsfreeofanypledge, mortgageorotherencumbrancesforanamountatleastequalto Operating Cash Flow. of suchlicensor, aslonganyoftheseterritoriesaccountformorethan40%theIssuer’sAdjusted Consolidated franchised byTCCCtotheCompany forthedevelopment,production,saleanddistributionofproductsbrands Not lose,sell,assign,ortransfertoathirdpartyanyotherterritoryofArgentinaBrazil,which asofthisdateis licensor, inaccordancetotherespectivebottlerorlicenseagreement,renewablefromtimetime. by TheCoca-Cola Company forthedevelopment,production,saleanddistributionofproductsbrands ted asthe“Metropolitan Region” (Región Metropolitana) asaterritoryinChilewhichwehavebeenauthorized Maintain, andinnomannerlose,sell,assignortransfertoathirdparty, thegeographicalareacurrentlydenomina- Financial Statements.Consolidated Equitywillberegardedastotalequityincludingnon-controllinginterest. ties under“OtherCurrentFinancial Assets”and“Othernon-currentFinancial Assets”oftheIssuer’s Consolidated balances ofderivativefinancialinstruments,takentocoverexchangerateorinterestrisksonliabili- interest, namely:(i)othercurrentfinancialliabilities,plus(ii)non-currentless(iii)asset 1.20 times.For thesepurposesConsolidated Financial LiabilitiesshallberegardedasReceivables accruing •Maintain anindebtednesslevelwhereConsolidated Financial LiabilitiestoConsolidated Equitydoesnotexceed and real cover instruments, AS OFDECEMBER31, 2017, THE VALUES OFITEMSINCLUDED IN THIS INDICATOR ARE THE FOLLOWING: consolidated by lien “Other assets Assets

exchange Current will real of voluntarily accounts be having guarantees free non-current considered taken Financial

rate of liabilities a any

and or with pledge, to

interest hedge pledge, on conventionally Assets” Financial the in payable goods mortgage determining respective exchange

rate mortgage and and

shall risks Assets” “Other assets or constituted rate

amounts be on or real Consolidated

regarded financial other or of of non-current encumbrances interest the the lien used Issuer’s latter, by

liabilities as will the rate for the Assets: voluntarily issuer Financial only the risks total Consolidated that

and previous be on less liabilities, assets operate regarded

under financial Assets” asset and free calculation

solely “Other conventionally Statement balances as obligations of of liabilities those the any by

Current law, Issuer’s of pledge, assets is of derivative detailed under and less Financial

constituted Financial free asset Consolidated debts mortgage “Other of as financial balances any of follows Position.

Assets” the Current (61,898,833) by pledge, 813,233,349 675,767,201 or 67,981,405 the issuer THCH$ other instruments, Statement (in of

and Therefore, issuer derivative mortgage thousand Financial that

lien, “Other less are as of

- 129 - -129

Coca‑Cola Andina • Annual Report 2017 Regarding C, Series the Issuer issubject to the following restrictions: Series Because Restrictions regarding bondlinesregistered inthe Securities Registered undernumber 641. The accountswiththerespectiveamountsusedforpreviouscalculationaredetailedasfollows: As ofDecember31,2017,thisindexis1.62times. The accountswiththerespectiveamountsusedforpreviouscalculationaredetailedasfollows: As ofDecember31,2017,Net Financial Debtwas0.65times. market in2010: Consolidated Equity (-) Othernon-current financialassets (hedgederivatives) (-) Othercurrent financialassets (-) Cashandcashequivalent Other non-current financialliabilities Other current financialliabilities Unsecured Consolidated LiabilitiesPayable (adjusted) (-) Othercurrent andnon-current financialassets (hedgederivatives) Consolidated liabilitiespayable not guaranteed Consolidated Assets free of pledges, mortgagesorother liens(adjusted) (-) Othercurrent andnon-current financialassets (hedgederivatives) Consolidated assets free of collateral, mortgagesorother liens AS OFDECEMBER31, 2017, THE VALUES OFITEMSINCLUDED IN THIS RESTRICTIONARE THE FOLLOWING: AS OFDECEMBER31, 2017, THE VALUES OFITEMSINCLUDED IN THIS • • C financial debtandcash. lling ownersplusnon-controllinginterest).Onitspart,netfinancialdebtwillbethedifferencebetweenIssuer’s shall bedefinedastheratiobetweennetfinancialdebtandtotalequityofissuer(equityattributabletocontro- measured overfiguresincludedinitsconsolidatedstatementoffinancialposition.To thisend,netfinancialdebt Maintain alevelof“Net Financial Debt”withinitsquarterlyfinancialstatementsthatmaynotexceed1.5times, balance ofoutstandingcapitalisUF1.5million. UF 1.5millionofSeries Cbondsdue2031,bearinganannualinterestrateof4.00%.AsDecember 31,2017,the was of our issued merger RESTRICTION ARE THE FOLLOWING: with with charge Coca-Cola to the Bond Polar Lines S.A., registered Andina with became the Securities a debtor of Registrar, the following under (136,242,116) (61,898,833) (14,138,161) 813,233,349 675,767,201 67,981,405 THCH$ two number bonds 641, 1,239,727,285 2,002,309,310 1,301,626,118 2,064,208,143 placed (61,898,833) (61,898,833) THCH$ on August in the 23, Chilean 2010. - 130 - 130 -

Coca‑Cola Andina • Annual Report 2017 (1)For thepurposeofcalculating thecovenant, EBITDA was calculated asagreed inthebondissue. The accountswiththerespectiveamountsusedforpreviouscalculationaredetailedasfollows: As ofDecember31,2017,thisindexis1.62times. financial instruments,takentohedgeexchangerateandinterestriskoftheliabilities). Non-Current Assets Unencumbered Maintain The accountswiththerespectiveamountsusedforpreviouscalculationaredetailedasfollows: As ofDecember31,2017Net Financial Coverage levelis7.30times. the issuer’sunsecuredconsolidatedliabilities. parties, (to Unsecured rate riskofthefinancialliabilities). Financial (-) ConsolidatedEbitdabetween January 1andSeptember 30, 2016 (+) Consolidatedfinancialincomebetween January1andDecember31, 2017 (+) ConsolidatedEbitdabetween January 1andDecember31, 2017 Unsecured Consolidated LiabilitiesPayable (adjusted) (-) Othercurrent andnon-current financialassets (hedge derivatives) Consolidated liabilitiespayable not guaranteed Consolidated Assets free of pledges, mortgagesorother liens(adjusted) (-) Othercurrent andnon-current financialassets (hedge derivatives) Consolidated assets free of collateral, mortgagesorother liens AS OFDECEMBER31, 2017, THE VALUES OFITEMSINCLUDED IN THIS RESTRICTIONARE THE FOLLOWING: AS OFDECEMBER31, 2017, THE VALUES OFITEMSINCLUDED IN THIS INDICATOR ARE THE FOLLOWING: the • of extent consecutive quarters. breached whenthementionednetfinancialcoveragelevelislowerthanpreviouslyindicatedduringtwo income lessfinancialexpenses)oftheissuerforpast12months.However, thisrestrictionwillbeconsidered coverage meanstheratiobetweenIssuer’sEbitdaforpast12monthsandnetfinancialexpenses(financial Maintain alevelof“Financial netcoverage”initsquarterlyfinancialstatementsofmorethan3times.Net financial less the consolidated Statement total “Other Issuer’s Financial they assets liabilities correspond Current which Financial refer assets Assets” correspond to do Financial free the to of not Statements; asset the of assets benefit any Issuer’s Assets” to: balances that pledge, liabilities from and meet Financial and of that mortgage preferences the derivative “Other from are following Statements free Total Non-Current or of financial other or Current any conditions: privileges, encumbrances pledge, (to the instruments, Liabilities Financial extent mortgage less are the “Other they and Assets” for property taken or correspond an Total Current other amount of to Non-Current of the hedge liens the Issuer’s Financial to at issuer; constituted 1,239,727,285 2,002,309,310 asset exchange least 1,301,626,118 2,064,208,143 (55,220,369) (61,898,833) (61,898,833) 321,188,879 11,194,375 THCH$ THCH$ Financial equal balances classified Liabilities Assets” rate in to favor 1.30 of and and under Statements of derivative times Issuer’s interest of “Other third Total of

- 131 - 131 - Coca‑Cola Andina • Annual Report 2017 exchange Financial Position. Financial Assets” oftheIssuer’sConsolidated Statementof Financial Position. voluntarily not instruments, those The Regarding C, Series DandE,the Issuer issubject to the following restrictions: During 2013and2014,AndinaplacedlocalbondsintheChileanmarket.Theissuanceswerestructuredintothreeseries. Restrictions regarding bondlinesregistered inthe 759 Securities Registrar and760. undernumbers Unsecured The accountswiththerespectiveamountsusedforpreviouscalculationaredetailedasfollows: As ofDecember31,2017,IndebtednessLevelis0.65timesConsolidated Equity. under the assetbalancesofderivativefinancialinstruments,takento coverexchangerateorinterestrisksonfinancialliabilities free and Consolidated Equity (-) Othernon-current financialassets (hedgederivatives) (-) Othercurrent financialassets (-) Cashandcashequivalent Other non-current financialliabilities Other current financialliabilities secured following “Other of • • • • AS OFDECEMBER31, 2017, THE VALUES OFITEMSINCLUDED IN THIS RESTRICTIONARE THE assets “Other any amounts toUF7.0million. 3.8% forSeries Dand3.75%forSeries E.TheoutstandingcapitalbalanceasofDecember31,2017,bothseries maturity in2034and2035,respectively, issuedwithchargeagainstlinenumber760.Theannualinterestratesare llion wereplacedinbondsduringAugust 2013(seriesD)andUF3millionduringApril 2014(seriesE),withfinal Series DandEoutstandingasofDecember31,2017,foratotalnominalvalueUF8million,which4mi- issued againstlinenumber759.OutstandingcapitalasofDecember31,2017,isUF0.750million. for anominalamountofUF1.0millionwithfinalmaturityduringyear2020atanannualinterestrate3.50% Series CoutstandingasofDecember31,2017,foranominalvalueuptoUF3million,whichbondswereplaced 1.30 timesoftheissuer’sunsecuredconsolidatedliabilitiespayable. Maintain consolidatedassetsfreeofanypledge,mortgageorotherencumbrancesforanamount atleastequalto liabilities). Consolidated Equitywillberegardedastotalequityincludingnon-controllinginterest. are assetbalancesofderivativefinancialinstruments,takentohedgeexchangerateorinterestriskson cash equivalentand(iv)othercurrentfinancialassets,(v)non-currentassets(totheextentthey interest, namely:(i)othercurrentfinancialliabilities,plus(ii)non-currentless(iii)cashand times. For thesepurposesConsolidated Financial LiabilitiesshallberegardedasReceivables accruing Maintain anindebtednesslevelwhereConsolidated Financial LiabilitiestoConsolidated Equitydoesnotexceed1.20 rate pledge, and Consolidated non-current having by taken will Current or real conventionally interest be mortgage a to guarantees considered pledge, hedge Financial Financial rate Liabilities mortgage exchange or risks constituted on other in Assets” Assets” determining goods on Payable FOLLOWING: lien financial or rate and real and will of by or shall encumbrances “Other the interest assets the only liabilities Consolidated be Issuer’s issuer be regarded of non-current rate regarded the less and Consolidated risks latter, that asset Assets: under as on as the operate voluntarily Financial balances financial those total “Other assets Financial solely assets liabilities, free Current Assets” of liabilities and derivative by free of conventionally law, Statements. any obligations of Financial of under less pledge, the any financial asset Issuer’s pledge, “Other mortgage Assets” Therefore, and balances constituted instruments, (136,242,116) mortgage Consolidated (61,898,833) (14,138,161) debts 813,233,349 675,767,201 Current 67,981,405 and THCH$ or of of Consolidated other “Other derivative the by Financial or the issuer other taken lien, Statement non-current issuer as financial real to that Assets” well Assets cover lien less are as of

- 132 - 132 -

Coca‑Cola Andina • Annual Report 2017 of eachonehasbeenrecorded in othercomprehensiveincome. the December million, 2013, The are joinedinasingleentity, thementionedbondliabilitybecomesextinguished. Please seedetails inNote 20. 15.3.1 from the In 15.2.6 The accountswiththerespectiveamountsusedforpreviouscalculationaredetailedasfollows: As ofDecember31,2017,thisindexis1.62times. As ofDecember31,2017,and2016,theCompany complieswithallfinancialcollaterals. S.A. issued Through consolidation: Unsecured Consolidated LiabilitiesPayable (adjusted (-) Othercurrent andnon-current financialassets (hedgederivatives) Consolidated liabilitiespayable not guaranteed Consolidated Assets free of pledges, mortgagesorother liens(adjusted) (-) Othercurrent andnon-current financialassets (hedgederivatives) Consolidated assets free of collateral, mortgagesorother liens AS OFDECEMBER31, 2017, THE VALUES OFITEMSINCLUDED IN THIS RESTRICTIONARE THE FOLLOWING: addition

above-mentioned Brazilian subsidiary rescued • • these Abisa on equity method”;plus(v)“Depreciation”; plus(vi)“IntangiblesAmortization”. Expenses”; plus(iv)“Participation inprofits(losses)ofassociatesandjointventuresthatareaccountedforusingthe Profit” whichincludesregularactivitiesandcostofsales;less(ii)“DistributionCosts”; less(iii)“Administrative addition ofthefollowingaccountingaccountsIssuer’sConsolidated StatementofFinancial Position: (i)“Gross assignment ortransfer. For thesepurposes,theterm“Adjusted Consolidated Operating Cash Flow” shallmeanthe Adjusted Consolidated OperatingCash Flow oftheauditedperiodimmediatelybeforemomentloss,sale, of productsandbrandssuchlicensor, aslonganyoftheseterritoriesaccountformorethan40%theIssuer’s date oftheseinstrumentsisfranchisedbyTCCCtotheIssuerfordevelopment,production,saleanddistribution Not lose,sell,assign,ortransfertoathirdpartyanyotherterritoryofArgentinaBrazil,which asoftheissuance consolidates intermsofaccountingwiththeIssuer. loss, sale,transferordisposition,ofthatlicensedterritoryispurchasedacquiredbyasubsidiaryanentity TCCC, forthegeographicalareatodaycalled“Metropolitan Region”. Thisreasonshallnotapplyif,asaresultofthe time. Losingsaidterritory, meansthenon-renewal,earlyterminationorcancellationofthislicenseagreementby and brandsofsaidlicensor, inaccordancetotherespectivebottlerorlicenseagreement,renewablefromtime ter alsoreferredtoas“TCCC”orthe“Licensor”fordevelopment,production,saleanddistributionofproducts ted asthe“Metropolitan Region” asaterritoryfranchisedtotheIssuerinChilebyTheCoca-Cola Company, hereinaf- Maintain, andinnomanner, lose,sell,assignortransfertoathirdparty, thegeographicalareacurrentlydenomina- of its Derivative contractobligations Repurchased bonds the 2020 which consolidated to Corp subsidiaries, US$200 subsidiary; UF U.S. Rio and S.A. bonds, US$200 de Market

Brazilian semi-annual transferred Janeiro million financial consequently, the Abisa during million Company Refrescos

in subsidiary. Corp outstanding the statements. interest the are totality S.A. years the holds outstanding Ltda.

Consequently, (formerly payments. effects 2000, of bonds bonds maintains In this addition, of 2001, asset that from as Pacific exchange As of

the a it of to 2002, its December liability the has December

Embotelladora Sterling), assets subsidiary transaction repurchased rate 2007

corresponding and differences 31, Embotelladora

31, liabilities and Abisa 2013. 2017, has are 2008. in Corp been On full Andina between these

related to The December through treated S.A., a Andina issues bond entire S.A.,

to the thus

the as issuance companies dollar the are

placement S.A. transaction 15, a since net latter held 2014, repurchased and 1,239,727,285 2,002,309,310 investment legally 1,301,626,118 2,064,208,143 for by (61,898,833) (61,898,833) becoming the that Embotelladora THCH$ Andina. US amounted

have functional debtor are $75

been included of its million the On the and Bonds

eliminated to creditor January currency group US$350 creditor Andina due in USA the in in of 1,

- 133 - -133

Coca‑Cola Andina • Annual Report 2017 15.4.1 Current liabilities for leasing agreements - 134 -

INDEBTED ENTITY CREDITOR ENTITY MATURITY TOTAL AMORTIZATION EFFECTIVE NOMINAL UP TO 90 DAYS TO NAME COUNTRY TAX ID NAME TYPE CURRENCY TYPE RATE RATE 90 DAYS 1 YEAR AT 31.12.2017 AT 31.12.2016 THCH$ THCH$ THCH$ THCH$ Brazilian Rio de Janeiro Refrescos Ltda. Brazil Foreign Itaú Brazil real Monthly 10.215% 10.227% 9,767 31,700 41,467 110,732 Brazilian Rio de Janeiro Refrescos Ltda. Brazil Foreign Santander Brazil real Monthly 9.65% 9.47% 183,761 321,054 504,815 1,016,705 Brazilian Rio de Janeiro Refrescos Ltda. Brazil Foreign Citibank Brazil real Monthly 8.54% 8.52% 146,251 382,550 528,801 872,247 Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola Cogeração Light Brazilian Rio de Janeiro Refrescos Ltda. Brazil Foreign Esco Brazil real Monthly 13.00% 12.28% 156,946 500,664 657,610 674,127 Embotelladora del Atlántico S.A. Argentina Foreign Tetra Pak SRL Argentina Dollars Monthly 12.00% 12.00% 25,541 302,091 327,632 103,314 Brazilian Rio de Janeiro Refrescos Ltda. Brazil Foreign Bradesco Brazil real Monthly 9.39% 9.38% - - - 8,299 Total 2,060,325 2,785,424

15.4.2 Non-current liabilities for leasing agreements December 31, 2017

INDEBTED ENTITY CREDITOR ENTITY MATURITY 2 YEARS 3 YEARS 4 YEARS AMORTIZATION EFFECTIVE NOMINAL 1 YEAR TO TO TO TO MORE AT NAME COUNTRY TAX ID NAME TYPE CURRENCY TYPE RATE RATE 2 YEARS 3 YEARS 4 YEARS 5 YEARS 5 YEARS 31.12.2016 THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Rio de Janeiro Refrescos Cogeração Brazilian Ltda. Brazil Foreign Light Esco Brazil real Monthly 13.00% 12.28% 2,476,445 2,234,004 2,138,183 2,138,183 7,535,257 16,522,072 Rio de Janeiro Refrescos Brazilian Ltda. Brazil Foreign Santander Brazil real Monthly 9.65% 9.47% 591,576 - - - - 591,576 Rio de Janeiro Refrescos Brazilian Ltda. Brazil Foreign Itaú Brazil real Monthly 10.21% 10.22% 54,327 - - - - 54,327 Report • Annual 2017 Andina Coca‑Cola Rio de Janeiro Refrescos Brazilian Ltda. Brazil Foreign Citibank Brazil real Monthly 8.54% 8.52% 624,937 - - - - 624,937 Embotelladora del Atlántico Tetra Pak S.A. Argentina Foreign SRL Argentina Dollars Monthly 12.00% 12.00% 356,794 - - - - 356,794 Total 18,149,706 (1) Total expensesrelatedtooperating leasesmaintainedbytheCompany asofDecember31,2017amounttoThCh$1,671,534. Accruable liabilitiespursuanttotheCompany’s operatingleasingagreementsaredetailedasfollows: have anaveragedurationofonetoeightyearsexcludingrenewaloptions. The Trade andothercurrentaccountspayablearedetailedasfollows: NOTE –TRADE 16 AND OTHER CURRENT ACCOUNTS PAYABLE Total Maturity more thanfive years Maturity between oneandfive years Maturity withinoneyear Total Non-current Current Accounts payable InamarLtda. (1) Withholdings tax Trade accounts payable ITEM Total Others Company ged toinfavor ofIndustriasMetalurgicas InamarLtda. UF 675,000, ofwhichthere isanapproximate balance of ThUF 303. To guarantee thepayment ofthisobligationthelandhasbeenmortga- On December 3, 2015, property was purchased from IndustriasMetalurgicas InamarLtda. for anamountof ThCh$17,292,040 equivalent to maintains commercial lease agreements for forklifts, vehicles, 258,652,403 258,652,403 257,519,477 187,872,116 12.31.2017 49,857,086 20,566,980 1,132,926 properties THCH$ 356,221 and 8,677,350 1,944,717 1,201,980 5,530,653 machinery. THCH$ These 252,346,183 252,346,183 242,836,356 179,246,672 12.31.2016 45,504,119 19,282,989 9,509,827 8,312,403 THCH$ lease agreements

- 136 - 136 -

Coca‑Cola Andina • Annual Report 2017 (*) Movement ofprovisionsisdetailedasfollows: 17.2 (1) This accountisdetailedasfollows: 17.1 NOTE – CURRENT 17 PROVISIONS AND NON-CURRENT DESCRIPTION Opening Balanceasof January01 Total Civil Contingencies Labor Contingencies Tax Contingencies DETAIL (SEENOTE 21.1) Total Litigation (1) DESCRIPTION Additional provisions Total differences Increase (decrease) duetoforeign exchange Reverse unusedprovision (*) Payments Increase (decrease) inexisting provisions Balances Movements rulings onthesubjectfor Rio deJaneiro Refrescos Ltda. from theSuperior ChamberofFiscal Resources (SCFR). resulted from finesdemanded by theBrazilian Treasury ontheuseofIPItaxcredits inthe Free Zone ofManaus, because offavorable During theyears 2017and2016there hasbeenareversal ofprovisions amountingto Th$6,769,384 and Th$2,774,703, respectively, which follows: Corresponds totheprovision for probable fiscal, laborandtrade contingency lossesbasedontheopinionofourlegaladvisors, detailedas (19,083,499) (6,769,384) 73,081,893 65,624,166 (7,084,605) LITIGATION 22,985,793 2,493,968 THCH$ 12.31.2017 OTHERS THCH$ ------(19,083,499) 73,081,893 65,624,166 (7,084,605) (6,769,384) 65,624,166 22,985,793 12.31.2017 65,624,166 2,493,968 THCH$ TOTAL THCH$ 65,624,166 12.31.2017 10,468,704 49,185,234 5,970,228 THCH$ (2,774,703) 64,301,817 73,081,893 (1,519,800) LITIGATION 1,047,308 7,750,420 4,276,851 THCH$ 12.31.2016 OTHERS THCH$ 73,081,893 12.31.2016 73,081,893 THCH$ 73,081,893 12.31.2016 63,543,782 ------7,940,428 1,597,683 THCH$ (2,774,703) 64,301,817 73,081,893 (1,519,800) 1,047,308 7,750,420 4,276,851 THCH$ TOTAL - 137 - 137 -

Coca‑Cola Andina • Annual Report 2017 According 19.2 19.1.2 19.1 NOTE –EQUITY 19 Other currentandnon-currentliabilitiesateachreportingperiodendaredetailedasfollows: NOTE – OTHER 18 CURRENT NON-FINANCIAL AND NON-CURRENT LIABILITIES 19.1.1 shareholders 2016 from tional dividendwaspaidinAugust 2017. Total Other Dividend payable Total B A A Total Non-current Current B • • retained

earnings SERIES Series B:Receives anadditional10%ofdividendsdistributedtoSeries Aandelects2ofthe14Directors. Series A:Elects12ofthe14Directors Dividend policy Dividend Number of shares: Rights ofeach series: Rights Equity: SERIES to Chilean to earnings. are DESCRIPTION the final contrary. law, 473,289,301 473,281,303 NUMBER OFSHARESSUBSCRIBED dividend At 2017 cash the If dividends there ordinary 270,737,574 135,358,070 135,379,504 to THCH$ 2017 complete is no 473,289,301 473,281,303 Shareholders’ must SUBSCRIBED CAPITAL net 2016 the profit be 30% paid in required a equal Meeting given 270,737,574 27,007,977 27,007,977 135,358,070 135,379,504 12.31.2017 473,289,301 473,281,303 21,679,922 27,007,977 5,328,055 THCH$ THCH$ NUMBER OFSHARESPAID IN 2016 2017 to year, at by held least - the the in Law 30% Company April 18,046 473,289,301 473,281,303 of 2017, annual 2016 will 270,737,574 135,358,070 135,379,504 which the THCH$ not 2017 net shareholders be was profit, legally 473,289,301 473,281,303 PAID-IN CAPITAL paid NUMBER OF VOTING SHARES barring 2017 in 20,771,581 20,771,581 obligated 12.31.2016 19,358,263 20,612,791 1,413,318 agreed THCH$ May 158,790 a unanimous 2017, 270,737,574 135,358,070 135,379,504 to to THCH$ 2016 pay 473,289,301 473,281,303 pay and 2016 out dividends an vote of addi- the by - 138 - -138

Coca‑Cola Andina • Annual Report 2017 following: 8,600,015 (*) This dividendispendingpayment asoftheclosingdate. The dividendsdeclaredandpaidpersharearepresentedbelow: Company’s Pursuant Accumulated distribution. 2016 Total accounts parent Company Deferred taxes complementary calculation parent Company Post-employment benefits actuarial parent Company Full absorption costaccounting companies andsubsidiaries differences of investments in related Foreign currency translation Revaluation of assets parent Company 2016 2016 2016 2017 2017 2017 2017 2017 to have DIVIDEND PAYMENT DATE Board DESCRIPTION Circular earnings been of Directors realized Letter January May August October January May August October December (*) at the N° date as decided 1,945 of of December EVENT WHEN AMOUNTEVENT WHEN IFRS of Amortization employees Termination of Sale of products impairment Sale or impairment Sale or to IS REALIZED the maintain adoption Chilean DIVIDEND TYPE 31, Interim Final Additional Interim Interim Final Additional Interim Interim 2017,

the as Financial initial of and AMOUNT OFACCUMULATED EARNINGS AT 01.01.2009 January are 19,260,703 adjustments (1,444,960) 14,800,384 4,653,301 Market available 946,803 305,175 PROFITS IMPUTABLE TO DIVIDENDS THCH$ 1, 2009, 2015 2015 Retained Earnings 2016 2016 2016 Retained Earnings 2017 2017 Commission for from amounted distribution adopting REALIZED AT 12.31.2017 (11,907,228) (8,600,015) 1,444,960 2,805,255 (CMF) (637,827) (305,175) to THCH$ ThCh$ IFRS as dividends dated as CH$ PERSERIES 19,260,703, retained A SHARE September 17.00 17.00 17.00 17.00 19.00 19.00 19.00 19.00 21.50 in AMOUNT OFACCUMULATED EARNINGS AT 12.31.2017 accordance earnings 10,660,688 2,893,156 7,458,556 of 308,976 29, THCH$ CH$ PERSERIES which B SHARE 2009, 18.70 18.70 18.70 18.70 20.90 20.90 20.90 20.90 23.65 for - - with ThCh$ future the the

- 139 - -139

Coca‑Cola Andina • Annual Report 2017 talization 5,435,538 asofDecember31,2009 corresponding period(seeNote 20). price-level each In The balanceofotherreservesisestablishedthroughthefollowingconcept: 19.3.4 Corresponds 19.3.3 They 19.3.2 Coca-Cola Polar S.A.,whichwasthevalueofcapitalincreasenotarizedinlegalterms. This 19.3.1 The balanceofotherreservesincludesthefollowing: 19.3 carried toothercomprehensiveincome. Total Legal andstatutoryreserves Reserve for employee benefit actuarialgainsorlosses Cash flow hedge reserve Foreign currency translation reserves Polar acquisition accordance

amount financial arise

Reserves Legal and statutory reserves Legal andstatutory Reserve for employee gains orlosses benefit actuarial Cash flow hedge reserve Polar acquisition from restatement from

corresponds to period. with Other the the Official restatement fair When Reserves of value

to paid-in

Circular the contracts DESCRIPTION of

fair with effect the capital

value No. no existing are of impact

456 of for employee expired,

the 2009 issued derivative

issuance on is net these by benefits presented income the

of contracts reserves

shares Chilean actuarial or as

of are retained that part

Financial Embotelladora adjusted have losses of other earnings been Market that (237,077,572) 185,049,228 and 421,701,520 12.31.2017 equity (1,915,587) (3,094,671) qualified 5,435,538 THCH$

according Andina recognized under Commission reserves

S.A., for IFRS. to hedge in

used and IAS the This (CMF), is

19 to income accounting accounted

amount acquire amendments (168,744,355) 254,159,496 the 421,701,520 12.31.2016 (1,785,032) (2,448,175) 5,435,538 THCH$ statement

legally Embotelladoras totaled at for the as required must ThCh$ a end in capi- the be of

-140

Coca‑Cola Andina • Annual Report 2017 from and December31,2016,thisaccountisdetailedasfollows: receivable This 19.4 The movementofthisreserveforthefiscalyearsendedDecember31,2017and2016,isdetailedasfollows: This 19.3.5 investment equivalentsaccountedforusingtheequitymethod.Translation reservesaredetailedasfollows: Total Envases Central S.A. Vital AguasS.A. Vital S.A. Paraguay Refrescos S.A. Andina EmpaquesArgentina S.A. Embotelladora delAtlántico S.A. Total companies Exchange rate differences in related Paraguay Argentina Brazil Paraguay Argentina Brazil Total companies Exchange rate differences in related is corresponds the the Non-controlling interests presentation Foreign currency reserves translation kept recognition DETAILS by DETAILS DETAILS to the the companies currency of conversion the portion of in the of Chile of consolidated 40.7300 33.5000 35.0000 the 2.1697 0.0209 0.0171 equity 2017 with financial OWNERSHIP % and foreign NON-CONTROLLING INTERESTS income financial statements 40.7300 33.5000 35.0000 2.1697 0.0209 0.0171 2016 subsidiaries (237,077,572) (128,348,112) (68,333,217) (15,407,785) (19,961,899) (31,850,694) (90,156,924) (13,710,204) 12.31.2017 12.31.2017 (1,112,839) (4,862,332) from THCH$ THCH$ statements. of subsidiaries 21,923,307 foreign 5,483,331 2,117,098 9,261,108 5,045,792 are DECEMBER THCH$ SHAREHOLDERS’ EQUITY 2017 13,765 2,213 presented Additionally, subsidiaries owned 21,564,445 in 5,129,661 2,027,879 9,054,947 5,337,687 DECEMBER by this THCH$ 2016 12,209 exchange 2,062 whose third account, parties. functional differences 1,164,935 (168,744,355) which DECEMBER (108,386,213) (11,183,004) (23,472,215) (58,306,230) (12,597,365) 220,715 151,647 283,327 502,945 12.31.2016 12.31.2016 (1,297,198) THCH$ As 2017 30,138,065 10,545,453 5,590 THCH$ THCH$ 3,219,956 711 of currency have December INCOME between been 1,523,120 DECEMBER is 668,425 319,858 504,806 THCH$ treated 2016 23,744 accounts different 5,502 31, 785 2017 as -141 - Coca‑Cola Andina • Annual Report 2017 the flows and of These Said gations At a) Cross Currency Swaps associated with USBonds 20.1 As Cross Assets. Embotelladora NOTE –DERIVATIVE 20 ASSETS AND LIABILITIES Earnings pershareusedtocalculatebasicanddilutedearningsisdetailedasfollows: for theperiodandaveragenumberofsharesoutstandingduringsameperiod. The 19.5 On Zero-Coupon. the Bloomberg terminal. recorded inothergainsandlosses asofDecember31,2017. calculation, equity contracts pesos) Earnings perbasicanddilutedshare (inChilean Average weighted numberof shares Earnings attributabletoshareholders (ThCh$) pesos) Earnings perbasicanddilutedshare (inChilean Average weighted numberof shares Earnings attributabletoshareholders (ThCh$) these December of the market basic BRL/USD, contracts the at Currency swap reserves other of Derivatives accounted for as cash flow hedges: Earnings per share derivatives a closing with earnings rate US$570 by the contracts hand, 31, are using corresponding similar Andina EARNINGS PERSHARE EARNINGS PERSHARE as for Company Swaps, 2017, dates valued of million per which which the the December have the maturity as currently share fair also Bloomberg of at Company it is uses into their value the December is lower presented known to necessary UF same as profiles. 31, maintains the value of discount than and 2017. forward entered risk as terminal. terms 31, and in Real interest the To of to The 2017 the the “Cross the perform discount curves, hedged of liabilities into currency statement ineffective net Currently the and operation. rate cross Currency value underlying December the items and the future contracts to currency UF 473,289,301 473,289,301 to of above hedge 43,107,979 56,112,755 currency Embotelladora portion SERIES A SERIES A amounted The be comprehensive Zero-Coupon, Swaps” cash 118.56 91.08 received 31, bond calculation, basis the is swap 2016, for flows calculated swaps, Company’s and obligation of ThCh$2,112,608 to derivative as the in the ThCh$2,875,365 “Currency Andina of are UFs, the income Company the December information in valued Brazilian exposure Company and reference in contracts maintains 473,281,303 473,281,303 Brazilian is Forward” 12.31.2016 12.31.2017 47,418,012 61,723,035 expire SERIES B SERIES B calculated held by 31, 100.19 130.42 in Real used the to and uses losses to 2017 to the in variations convert Cross current Reais method agreements Zero-Coupon 2023. has in following market amounted as associated the been the Currency and US forward Additionally, calculations of in quotient information in recognized Dollar discounted foreign derivative as U.S. to with Derivative and ThCh$61,898,833. Swap 117,835,790 946,570,604 946,570,604 exchange 90,525,991 public between Dollars. TOTAL TOTAL exchange the this 124.49 is 95.64 the instruments: for within available obtained future U.S. hedge bond fair Financial UF/USD rates For income Dollar rates. other value cash obli was this for on in -

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Coca‑Cola Andina • Annual Report 2017 valued duringtheperiodusinglevel2. resulting During Inputsforassetsandliabilitiesthatarenotbasedonobservablemarketdata. Level 3: is, asprices)orindirectly(thatderivedfrom The Level Level 1:quoted(unadjusted)pricesinactivemarketsforidenticalassetsorliabilities technique: million of and fulfill Futures contractsthatensurepricesoffuturerawmaterialshavenotbeendesignatedashedgeagreements,sincetheydo December 31,2017;thereisabalanceofThCh$219,306toberecycledincomestatement. raw as of (ThCh$1,229,354 (ThCh$84,859,223 As Fair value hierarchy During 20.2 identified The ments ofincomeinthe“other gainsandlosses”account. 13,443,698 asofDecember31,2017. Total liabilities Other current financialliabilities Current liabilities Liabilities Total assets Other non-current financialassets Current financial assets Other current financialassets Current assets Assets hedged, ThCh$445,278

of of financial amount materials Company

December December 2: IFRS 2017 the Forward currency transactions expected to bevery likely: as Inputs in effective of the documentation reporting a of and December liabilities. net purchases uses net exchange other

31, 31, loss 2016, as and amount

portion as 2017, the 2016). of than of period, due an December following the All December

31, differences the in asset to quoted The of that the Company requirements, 2017 US

hedge Company derivative there derivative for agreements was Dollars hierarchy (US$61.1 prices 31, the 31, recycling were absorbed recognized FOR IDENTICAL ASSETS OR 2016). QUOTED PRICESINACTIVE entered 2016)

same had contracts during included no contracts FAIR VALUE MEASUREMENTS AT DECEMBER31, 2017 whereby

total LIABILITIES million for that (LEVEL 1) MARKETS Those and transfers concept of THCH$ into by determining

these ThCh$3,655,493 assets in ensure liabilities the by in the foreign contracts are - - - - - as its concepts level amounts of years.

of related statement of effects carried ThCh$ future items December 1 related currency that The and covering

covering to on at recognized flows between 469,019 are

its disclosing total of for variations fair to

MARKET DATA 62,367,852 foreign OBSERVABLE observable income 61,898,833 its forward (LEVEL 2) the 31, of value 445.278 THCH$ amount 445,278 469,019 existing foreign forecasted 2016). foreign period fair as

under exchange in related the in of value contracts the fair December exchange of for items These fair ended currency outstanding comprehensive consolidated items the value measurement to value

derivative have financial assets agreements December to UNOBSERVABLE MARKET have are derivative hedge of have 31, been financial accounted and 2017 been forward THCH$

liabilities contracts been DATA statement its classified liabilities, 31, categories; income (liability contracts were classified exposure 2017, designated - - - - - instruments contracts for

recorded in for of in amounted and directly U.S. of

either ThCh$62,244,284 for financial the to in all ThCh$1,229,354 a expected financial ThCh$445,278 dollars 62,367,852 of as same hedge was 61,898,833 directly at by under which 445.278 hedge THCH$ 445,278 469,019 TOTAL fair to valuation US$62.8 position. category liability and ThCh$ future assets value, state- were as (that the of

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Coca‑Cola Andina • Annual Report 2017 Companies anyamountsdisbursed bythemtotheBraziliangovernment. and with To ThCh$103,351,097 respectively. deposited rance customary Embotelladora delAtlántico S.A.maintainstimedepositsforanamountofThCh$663,274toguarantyjudicialliabilities taken pliance contingency 2) visioned tingency In 21.1 NOTE 21 – CONTINGENCIES AND COMMITMENTS non-provisioned 1) contingencies thatmightresultinmaterialorsignificantlossesgains,exceptforthefollowing: Total liabilities Other current financialliabilities Current liabilities Liabilities Total assets Other non-current financialassets Other current financialassets Current assets Assets Embotelladora Rio the ensure bail the companies guarantee opinion de of Lawsuits and other legal actions: letters of contingencies Brazilian or certain Janeiro fulfillment in a of pledged probable Brazil, of are a insurance contingencies del in probable

processes, the Refrescos tax executed, Brazil, Atlántico Rio as Company’s of loss authorities will legal the de because loss through and affect Janeiro obligations irrespective Rio Ltda. guarantees S.A. because will guarantee de legal should the faces of faces which affect Refrescos Janeiro FOR IDENTICAL ASSETS OR QUOTED PRICESINACTIVE these Company’s counsel, of arising labor, of labor, as any FAIR VALUE MEASUREMENTS AT DECEMBER31, 2016 the these letters these LIABILITIES lawsuits, whether of (LEVEL 1) Refrescos MARKETS THCH$ Company’s trial December

Ltda. tax, tax, from entities the lawsuits, amounting income civil result - - - - - civil maintains these Parent totaling judicial Ltda. and after and against 31, income have and totaling Company trade promises 2017 ThCh$1,340,027. to a trade proceedings equity, 0.6% judicial been R$682,849,162 lawsuits. Rio and and MARKET DATA 84,859,223 ThCh$56,607,721. OBSERVABLE lawsuits. 80,180,880 1,229,354 (LEVEL 2) 1,229,354 4,678,343 classified commission, de THCH$ to and based equity, December deposits reimburse Janeiro its Accounting faced

on Accounting based subsidiaries as Management the and with Refrescos in a 31, become possible, to Brazil, on opinion assets 2016, different the Management UNOBSERVABLE MARKET provisions the

provisions financial do opinion Rio amounted responsible Ltda. given probable of considers (LEVEL 3) not THCH$ DATA financial de its in face Additionally, have Janeiro legal institutions of pledge - - - - - considers have or its to judicial it been of counsel. institutions remote. ThCh$31,953,725 unlikely legal fulfilling Refrescos been to made secure counsel. or if it and 84,859,223 80,180,880 made The 1,229,354 that extra-judicial the unlikely Additionally, 1,229,354 4,678,343 for THCH$ obligations TOTAL Insurance Ltda., and amounts warranty the non-pro the for As insu- com- con-

that and it has the is -

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Coca‑Cola Andina • Annual Report 2017 the amount ment ofICMStaxtotheoperations,untimelyIPIcreditscalculatedonbonuses,amongotherclaims. that Ipiranga ments), The (October 2013)thatamounttoR$331,045,690 Based located intheManaus freetradezone. of 4) is been counsel, The They b) Tax contingenciesonICMSand IPIcauses. equivalent toThCh$29,602,682. amounting Rio a) Tax contingenciesresultingfromcreditsontaxindustrializedproducts(IPI). Main contingenciesfacedbyRiodeJaneiro Refrescos areasfollows: ex-Companhia payment was Notwithstanding sent probablelossesandhasnotrecordedaprovisiononthesematters. contingencies willaffectincomeandequityoftheCompany, intheopinionofitslegaladvisors. in this of 3) equivalent toThCh$6,916,453. unlikely Embotelladora Paraguay terms any occurrence date de Company contingencies Company settled criterion,

made refer on loss Janeiro corresponding for on of is was of the that

mainly for considered distribution because R$1,082,396,664 in which Refrescos R$135,282,155 value-added opinion entitled an and does favor the rejects Refrescos non-provisioned de the Andina initial Bebidas contingency to it must discounted not of of is tax above, of the S.A. to these unlikely. the deemed consider to of its provision settlements be claim tax is position S.A. different the Ipiranga. faces however, Company, advisers, a measured the on lawsuits party (including purchase and to of IPI the contingencies industrialized IFRS However, tax, that fair a of

has to its probable tax trials loss The trade, and there issued the these a value and related Chilean amounting one been series credits price, can Brazilian initial readjustments judicial related by additionally the labor are judgments from

by loss be made one to of establish accounting subsidiaries will new in products advance amount generated. business proceedings and

to because outcomes the according connection to tax affect in the lawsuits other ThCh60,078. date the authority will during same contingencies appropriation demanded of (Imposto income of combination business on lawsuits. standards current result According face to these to arising under cause. which with date, their 2017 in labor, in and lawsuits, lawsuits), these sobre purchases reached significant Management Management combination Accounting probability way, In several after it of equity to tax, of must is September in financial procedures this in ICMS Produtos deemed the terms civil totaling which R$1,330,473,161 of trials be the criterion, purchase of the losses, and valued of credits provisions Company of certain information accounting estimates considers occurrence that were Company, the

2014, Industrializados, ThCh$7,616,340. distribution trade and given Brazilian one the on from settled of considers exempt one lawsuits. fixed loss recorded by ex-Companhia have that that it (historical in a for of one and related is total in can the assets, of federal these been their these unlikely raw an according favor discounted the Accounting that opinion be of a amount or loss, materials made Management provision to trials procedures purchase identified generated. payment amount Companhia tax of IPI) business that de the according authorities of for for to allegedly of Bebidas at its non-provisioned Company their the provisions R$598,745,218, R$159,293,486 from without R$37.2 fair price of legal contingencies According do combination contingency the considers de value probability to not suppliers establish advisors. Ipiranga owed demand Bebidas replace- its million adjust- in repre- from legal have the by to it

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Coca‑Cola Andina • Annual Report 2017 21.2 Direct guarantees and restricted assets: - 146 -

Guarantees and restricted assets are detailed as follows:

Guarantees that compromise assets including in the financial statements:

BALANCE PENDING PAYMENT ON THE CLOSING DATE OF THE PROVIDED BY COMMITTED ASSETS FINANCIAL STATEMENTS GUARANTEE IN FAVOR OF NAME RELATIONSHIP GUARANTEE TYPE 12.31.2017 12.31.2016 THCH$ THCH$ Industria Metalúrgica Inamar Ltda. Embotelladora Andina S.A. Parent Company Land Property, plant and equipment 17,991,202 17,777,078 Cash and cash Report • Annual 2017 Andina Coca‑Cola Gas Licuado Lipigas S.A Embotelladora Andina S.A. Parent Company equivalents Trade and other receivables 1,140 1,140 Cash and cash Nazira Tala Embotelladora Andina S.A. Parent Company equivalents Trade and other receivables - 6,924 Cash and cash Hospital Militar Servicios Multivending Subsidiary equivalents Trade and other receivables 4,727 4,648 Cash and cash Parque Arauco Servicios Multivending Subsidiary equivalents Trade and other receivables 5,345 - Cash and cash Aeropuerto Nuevo Pudahuel Servicios Multivending Subsidiary equivalents Other receivables 10,129 - Cash and cash Hospital FACH Servicios Multivending Subsidiary equivalents Other receivables 697 - Cash and cash Inmob. E Invers. Supetar Ltda Transportes Polar S.A. Subsidiary equivalents Other non-current, non-financial assets 4,579 4,579 Cash and cash Bodegas San Francisco Ltda. Transportes Polar S.A. Subsidiary equivalents Other non-current, non-financial assets 6,483 - Cash and cash Maria Lobos Jamet Transportes Polar S.A. Subsidiary equivalents Trade and other receivables 2,565 2,565 Reclamaciones Trabajadores Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current, non-financial assets 4,626,086 3,833,788 Reclamaciones Civiles Y Tributarias Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current, non-financial assets 13,104,186 14,304,401 Property, plant and Instituciones Gubernamentales Rio de Janeiro Refrescos Ltda. Subsidiary equipment Property, plant and equipment 14,223,453 85,212,908 Distribuidora Baraldo S.H. Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 659 843 Acuña Gomez Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 989 1,264 Municipalidad San Martin Mza Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets - 15,167 Nicanor López Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 707 904 Labarda Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 12 15 - 147 - Municipalidad Bariloche Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 38,315 230,599 Municipalidad San Antonio Oeste Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 72,768 93,005 Municipalidad Carlos Casares Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 2,943 3,761 Municipalidad Chivilcoy Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 455,104 581,668 Otros Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 140 179 Granada Maximiliano Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 5,934 7,584 Cicsa Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets 8,249 23,468 Locadores Varios Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets 53,900 47,397 Aduana De EZEIZA Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets 6,608 11,226 Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola Municipalidad De Junin Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 5,755 7,356 Almada Jorge Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 8,853 11,315 Municipalidad De Picun Leufu Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 128 163 Farias Matias Luis Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 1,226 20,367 Gomez Alejandra Raquel Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 62 79 Lopez Gustavo Gerardo C/Inti Saic Y Otros Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets 403 516 Fondo Fima Ahorro Plus C Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, financial assets - 588,485 Cash and cash Fondo Firma Ahorro Pesos C Embotelladora del Atlántico S.A. Subsidiary equivalents Other non-current, non-financial assets - 588,299 Tribunal Superior De Justicia De La Provincia De Cash and cash Córdoba Embotelladora del Atlántico S.A. Subsidiary equivalents Other non-current, non-financial assets 519 - Marcus A.Peña Paraguay Refrescos Subsidiary Building Property, plant and equipment 3,782 4,017 Mauricio J Cordero C Paraguay Refrescos Subsidiary Building Property, plant and equipment 800 871 José Ruoti Maltese Paraguay Refrescos Subsidiary Building Property, plant and equipment 715 755 Alejandro Galeano Paraguay Refrescos Subsidiary Building Property, plant and equipment 1,107 - Ana Maria Mazó Paraguay Refrescos Subsidiary Building Property, plant and equipment 1,054 - Fondo Fuma Premium B Fondo Fuma Premium B Subsidiary Judicial deposit Other current, financial assets - 407,792 Total 50,651,324 123,795,126 Guarantees provided without obligation of assets included in the financial statements: - 148 -

PROVIDED BY COMMITTED ASSETS AMOUNTS INVOLVED WARRANTY CREDITOR NAME RELATIONSHIP GUARANTEE TYPE 12.31.2017 12.31.2016 THCH$ THCH$ Importadora Casa y Regalos Trans-Heca S.A. Subsidiary Guarantee insurance Compliance lease contract 2,050 2,050 Inmobiliaria e Inversiones Gestion Activa Ltda Trans-Heca S.A. Subsidiary Guarantee insurance Compliance lease contract 4,585 4,585 Inmobiliaria Portofino Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond 900 900 Teléfonica Chile S.A. Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond 1,000 1,000 Inmobiliaria San Martin Logista S.A Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond 3,461 3,461

Procesos trabajadores Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action 1,496,862 1,236,439 Report • Annual 2017 Andina Coca‑Cola Procesos administrativos Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action 7,185,511 4,885,075 Gobierno Federal Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action 91,903,312 87,773,855 Gobierno Estadual Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action 20,527,817 14,674,244 HSBC Sorocaba Refrescos S.A. Associate Loan co-signers 3,716,747 4,108,312 Otros Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action 2,449,103 2,682,170 Aduana de Ezeiza Embotelladora del Atlántico S.A. Subsidiary Bond insurance Faithful fulfillment of contract 63,777 1,142,642 Aduana de Ezeiza Andina Empaques S.A. Subsidiary Bond insurance Faithful fulfillment of contract 347,990 369,963 certain risks.AdescriptionoftheprimarypoliciesestablishedbyCompany tomanagefinancialrisksareprovidedbelow: and The expenses resultingfromtaxrateincreases. rate of million cies, There variation). overdue, 80%between120and 170,and100%formorethan170days. uncertainty overdue, The ii. Impairment debt Manager has In i. Sale Interruption: receivable, business Credit a. Trade receivable accounts andother current receivable accounts Insurance netcreditbalancesasofDecember31,2017amountedtoTh$220,693. such astimedeposits,mutualfundsandderivativefinancialinstruments. lesalers The Credit risk Currency Swaps. million, As Interest Rate Risk The MANAGEMENT RISK FINANCIAL – 22 NOTE the provided Officer payment behavior. Trade accountsreceivablependingofpaymentaremonitoredonamonthlybasis. to thecountry’sreality. the accordance of customer outstanding seeks credit Company’s risk Company’s impairment should credits December calculation is risk is and denominated also denominated and unit. 60%between in these required. to risk which related conjunction on exceed supermarket must minimize the price whose The with recovering to will greatest businesses debts 31, Company’s which recognition of are be Company to US$1,000,000, Corporate risk). allow Notwithstanding 2017, global nature based trade subject in for 60 in potential the with UF indebtedness The chains generating them. dollars, an the and accounts impairment objectively, Company is are (“UF”), has indebtedness the to amount Credit Company’s policy known Company 91 policies, exposed However, in a adverse Finance days, wide and domestic and receivable a Policy, establishes economic the and is greater currency corresponds non-discretionary practically base 90%between is in exposed maintains effects procedures to foregoing, and given global these where order on the a of markets; Administration variety than the more is interruption benefits indexed accounts on to to comes risk the all managed international 100% credits continue US$ the to all each necessary than and of following 91 management and own of performance mainly financial to to 250,000, and of and also operation controls its 100 whose the inflation issued the and which of operating debt 120 uniformly Manager thousand have financial documentation sale Company. from criteria monitored market days delays and liabilities Chilean established and has an must can program in of trade impairment market overdue with Chile over authorize investments been the clients for through define in granted be The local accounts the by Company. provisions: that at within 60 (the re-denominated focuses risks the a by credit for payment implying and an days bonds client, fixed a to exceptions the Company’s area amount collection 144A/RegS provision the all 100% (including held receivable expired, limit Company. rate on The clients at following the of 30% correspond a with a the Finance high for as authorization is Company fixed lower to is as checked is to uncertainty more of sale sales banks to Bond maintained this available, level foreign follows: provisioned avoid rate In a framework: than UF same is and rule, accordance are than of to and in at suspended. uses and fluctuations periodically US$250,000 atomization Administration accounts a exchange correlated the 40% segment and of 120 financial fixed therefore, of BRL derivatives with amount the financial if for days. for when rate the Chief with through retailers, 91 31 disputed and risk, The with institutions, outstanding considering in for of a to to Exemption there of such according customer Financial accounts financial to channel, 120 60 markets UF11.58 General US$575 interest of the hedge Cross is who- each days poli- days with UF no

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Coca‑Cola Andina • Annual Report 2017 Chile of thegroupcaninvestin: well The has beenmadefortheportionofpastdueoutstandingdebtportfolionotcoveredbyinsurance. a) The companyisexposedtothreetypesofriskcausedbyexchange ratevolatility: Exchange Rate Risk The b. Financial investments In iv. Guarantees respective The The iii. Prepayment to suppliers investments, prepayments underUS$25,000. wholesalers each Historically, uncollectibletradeaccountshavebeenlowerthan0.5%oftheCompany’s totalsales. are requiredaccordingtothenatureofcreditgranted. done, Peso). be nates decreasesandincreasesinequity, respectively. TheCompany doesnothedgethisrisk. and which Exposure the required, Treasurer Policy its rest as Company country c. b. a. and a case Appreciation shall validity the direct Other investmentalternativesmustbeevaluatedandauthorizedbytheofficeofChiefFinancial Officer. or equivalent. Mutual equivalent fordepositsoflessthan1yearandratedA(S&P)ormoreyear. have Time term, of Humphreys service establishes expired of the be and of in a (Brazilian restricting Chile, deposits: of current bank rating foreign issued will has favor operations funds: distributors each contract. debt, depend a warranty or we of Policy greater subsidiary that by account, rating investments devaluation investment: Andina only have Real, both total a US$25,000 first do In on that in in insurance than agencies) will Paraguayan the amount the not the line the executable fixed banks must is types be case term have or case applicable of this bank; with required. equal rate the approve of or prepayments of of covering with of credit of risk the immediate domestic financial Chilean Tit instruments Guaraní, in the trade in to originates Compañía the trade the BCRA, AA-(S&P) contract. supplier to insurance, Subsidiaries accounts event the all respective Peso debtors institutions suppliers, and can of credit liquidity negotiable that warranties the as from In with de Argentine only or receivables. well instead the risk Seguros in companies this equivalent, country, can respect be the Chile and a case as regarding warranty that document granted obligations, define translation the that mortgage no Peso) of de reached have non-endorsable, to institutions risk foreign In the Crédito of each Type the to the ballot to trade the a of Company suppliers is risk the best ThCh$66,872,384. capital of of guarantees case 1 not Over group suppliers, Pacts Continental the net (or debtors Parent rating way issued of and the Night, functional investment (funds other and receives if in of payable degree its instrument Company’s equal in order safeguarding in a are Mutual value debtors, Chile etc.) stand-by the composed S.A. required for of or to on currencies country is in from concentration. prepayments for A higher cover (AA Funds, properly demand all existing different provision reporting credit 87% the those rating the for of credit where than with both investments functional of volume letter Company’s and or in counter-parties –according each types upon of currency risks Level AA+ before for the the fully ThCh$973,696 will The the country, country) transaction of operations rating presentation for provisioned. 1 be currency signing guarantees companies existing at assets (Fitch) financial (Chilean required to a (S&P) fixed- origi- Fitch shall that the for or as of of is

- 150 - 150 -

Coca‑Cola Andina • Annual Report 2017 with Peso In dollar. ned During As ofDecember31,2017,theArgentinepesodevaluedby21.8%withrespecttoChileanpeso. for 29.9%oftheCompany’s consolidatedsalesrevenues lower assetrecognitionofThCh$7,976,544andbyliabilitiesThCh$4,941,976. dollar-denominated financialliabilities. of Of ThCh$6,973,298. of As As a.3 Investment inParaguay asset recognitionofThCh$34,892,774andbylowerliabilitiesThCh$23,437,018. lower If As ofDecember31,2017,theBrazilianReal devaluedby9.5%withrespecttotheChileanpeso. 32.6% oftheCompany’s consolidatedsalesrevenues. of assetsamounting As a.2 Investment inBrazil lower If nition As a.1 Investment inArgentina nition obligations, withconsequenteffectonresults. b) lower assetrecognitionofThCh$12,580,330andliabilitiesThCh$1,497,727. If As ofDecember31,2017,theParaguayan Guarani appreciatedby5.3%withrespecttotheChileanpeso. for 7.6%oftheCompany’s consolidatedsalesrevenues. volatility lower the the the US Net bonds order total of of of of by a against December December December exchange exchange income income income dollar exchange December of higher of exposure increasing U.S. 2015, to of assets assets payable protect the dollar liabilities the exchange than from from from US rate amounting amounting rate 31, of rate 31, 31, U.S. 31, and parity liabilities, the the assets dollar 2017, the 2017, the the 2017, of of to ThCh$796,372,514 of 2017, dollar, the correspond leasing the official Company operation operation restrictions operations the of the the with and the Argentine Brazilian the to to the Paraguayan ThCh$327,632 Company the Company Company ThCh$190,848,657 liabilities ThCh$264,698,133 exchange liabilities respect Argentine Company Company from in in to in existed Brazil Real Argentina Peso Chilean Paraguay to the maintains maintains in maintains rate. Guaraní for the devalued peso devalued of maintains foreign effects in maintains and liabilitiesamountingtoThCh$528,720,897.Theseinvestmentsaccountedfor correspond ThCh$358,227,398 functional ThCh$2,012,627 With operations, Argentina versus of of devalued a ThCh$1,676,795 on ThCh$1,103,808 a and and currency: an the a net an net net income additional a dollar derivative additional arrival liabilities liabilities investment investment net currency to investment and which leasing by liability at until the resulting of 5% and the the are 5% offset risk amounting amounting contracts 5% of liabilities mid-December, with close of a and and of each exposed new with position of decrease with stems ThCh$267,651,617 ThCh$86,806,727 partially ThCh$232,553,018 from respect a a to Argentine country respect decrease decrease respect (cross values in mostly to to to the Argentina. totaling in Ch$104,041,930. ThCh$32,145,115. the to by equity volatility to currency generates to similar the there in volatility in financial from the Government, the equity equity Chilean ThCh$351,254,100, of Chilean Chilean was On carrying in ThCh$11,455,756, to in of in swaps) Brazil, a those of for the Argentina, the of a assets Paraguay, variation parallel the Peso, ThCh$11,082,603 ThCh$3,034,568, Peso, other Peso, Brazilian These These fixing liabilities that Chilean composed to denominated the cover hand, the the foreign kept in composed composed investments investments exchange Company Company Company the Real Peso basically almost the ThCh$357,899,766 in originated by valuation exchange US and parallel the against in originated originated rate dollar, by by 100% the would recognition would would dollars composed accounted accounted the the is by Chilean of market. market the lighte- recog- recog so of lower these have have have US US the for by by -

- 151 - 151 - Coca‑Cola Andina • Annual Report 2017 the purchases aremadewhenmarketconditionswarrant. Annual to The Real againsttheUSdollar, aremitigatedannullingitsexposuretoexchangerates. from The risk Liquidity in dated The Commodities risk According forward Changes in c) By derivatives contracts,isanassetpositionofThCh$4,095,112. (i) which foreign corresponding normal Paraguay andBrazil. to in thelocalmarketswhereCompany operates;and(iii)publicequityofferings additional In mately US$340million. anticipated Assets Property, mitigate ThCh$6,533,169 earnings debt order designating value products Company Company’s the financial are offerings currency course horizon. purchases to purchased cash in of inputs funding to minimize the purchase plant the for the the we flow is of statements, such effect mainly the value US net sell subject percentage derivatives required in As our and of of be period or dollar as the exposure are contracts of contracts of business, of raw equipment, our this indexed required of December to Chilean mainly currency costs to December payment operations. by materials risk, ended to a in of contracts risk 5% produce case or as as to are purchases the paid as for and investments of foreign hedging in of December volatility, 31, whose well of made future to Company December the price for denominated 2017, 31, foreign a This suppliers beverages to 5% as four in 2017. currency frequently lessen values fluctuations the derivatives, of geographic increase cash US$62.8 cash keeping raw countries 31, capital distribution can maintains Currently, 31, and are 2017. the of flow materials and, exposure: 2017, be or raw in expressed short-term effect to everything markets million generated has indexed as prices the expansion To in minimize where materials to a the a minimize historically effects the of of whole, currency foreign which this for of dividends international the (ii) the Company in in credit; its constant, future through risk exchange a on borrowings and/or or U.S. Company are account in main currency currency other this income hedging originates each carried been therefore, purchases dollars, approved raw has risk stabilize time, would needs, of for markets rate sufficient other operates, materials, for over contracts the out or from policy 35% depending amounts from over variations stabilize the lead or operations. by the have existing this than to commercial indexed mainly Company´s the stipulating cash purchases main to 40% to and risk. been to would the General cover a to often expenditures hedge lower assets in excluding on functional of sources The for 19% hedged-for to the operating be the This the U.S. sugar, supply of possible that main banks, Shareholders’ accumulated this a of Chilean and raw volatility investments reduction policy of our dollars, it derivatives effect liabilities, aluminum currency materials source financing contracts is the both expressed cost costs. effects necessary Peso stipulates of following in a of of internationally of possible the Procurement result Chile, and necessary of ThCh$9,603,715 Meeting. sales financing and in discounting and to contracts and exchange the in these consider the to investments a amounting US anticipated or 12 Argentina, subsidiary. PET enter change 12-month Brazilian months. approxi- consoli- dollars, Should for comes resin, taken rate. into and and are: the the in

- 152 - -152

Coca‑Cola Andina • Annual Report 2017 years: (1) Corresponds totheadditionofcost ofsales, administration expenses anddistributioncost. Other expensesbynatureare: NOTE –EXPENSES BY 23 NATURE The DETAILS Total Other expenses Repairs andmaintenance Depreciation andamortization Marketing Transportation anddistribution Payroll andemployee benefits Direct production costs Total Purchase obligations Operating leaseobligations Bond payable Bank debt following ITEM table presents an analysis 138,389,591 34,884,104 10,606,875 60,165,940 32,732,672 1 YEAR THCH$ of the Company’s MORE THAN 1 YEARTHAN MORE 1,610,152,160 65,695,842 43,047,365 UP TO2 6,634,305 9,875,310 6,138,862 181,249,647 163,361,088 287,458,526 815,455,280 THCH$ 12.31.2017 01.01.2017 committed 34,253,824 99,163,891 29,209,904 MATURITY THCH$ maturities MORE THAN 2 YEARSTHAN MORE 55,074,050 42,814,906 UP TO3 9,035,715 2,249,305 THCH$ 974,124 for liability MORE THAN 3UP payments 50,240,433 39,559,134 8,988,245 1,542,559 THCH$ TO 4 TO 150,495 1,563,789,717 173,168,224 153,675,961 288,293,137 776,824,622 12.31.2016 01.01.2016 34,511,508 97,334,452 39,981,813 THCH$ throughout MORE THAN 4 YEARS THAN MORE 762,728,584 734,352,340 24,872,335 3,206,042 THCH$ the 297,867 coming - 153 - -153

Coca‑Cola Andina • Annual Report 2017 Other expensesaredetailedasfollows: NOTE –OTHER 25 EXPENSES Other incomebyfunctionisdetailedasfollows: NOTE –OTHER 24 INCOME Total Others PIS/CONFINS Leasingtaxrecovery equipment Gain ondisposalof Property, plant and Total Others RP -Brazil (Seenote 17.2) Decrease Purchase PriceAllocation (PPA) in equipment Disposal andwrite-off of Property, plant and Tax onbankdebits Contingencies andNon-operating fees DETAILS DETAIL 16,701,471 (6,769,384) 12,146,574 12.31.2017 12.31.2017 01.01.2017 01.01.2017 3,025,497 7,669,234 550,834 238,364 312,470 629,550 THCH$ THCH$ - 22,765,167 1,760,899 1,034,040 12.31.2016 12.31.2016 01.01.2016 01.01.2016 4,800,278 7,006,261 9,959,181 408,088 318,771 999,447 THCH$ THCH$ - - 154 - -154

Coca‑Cola Andina • Annual Report 2017 b) Finance expenses

Other (losses)andgainsaredetailedasfollows: NOTE –OTHER 27 (LOSSES) AND GAIN a) Finance income Financial incomeandexpensesaredetailedasfollows: NOTE –FINANCIAL 26 INCOMEAND EXPENSES Total Other interest costs Bank loaninterest Bond interest Total Other interest income Interest income Gains (loss)onderivative transactions Other incomeand(expenses) derivatives (Losses) gainsonineffective portion of hedge Total DETAILS DETAIL DETAIL (2,537,269) 55,220,369 11,194,375 (2,536,079) 42,178,816 12.31.2017 12.31.2017 01.01.2017 12.31.2017 01.01.2017 01.01.2017 7,488,068 5,553,485 2,824,037 8,370,338 THCH$ THCH$ THCH$ (1,190) - (3,387,377) 51,374,971 (3,378,484) 41,652,154 12.31.2016 12.31.2016 01.01.2016 12.31.2016 01.01.2016 01.01.2016 9,661,692 5,731,964 3,990,853 1,195,515 8,466,177 THCH$ THCH$ THCH$ (1,466) (7,427) - 155 - -155

Coca‑Cola Andina • Annual Report 2017 Local andforeigncurrencybalancesasofDecember31,20172016,arethefollowing: NOTE –LOCAL 28 AND CURRENCY FOREIGN Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos Euros US Dollars Inventory Argentine Pesos Chilean pesos US Dollars Accounts receivable from related companies Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos Unidad deFomento Euros US Dollars Trade andother accounts receivable, net Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos Unidad deFomento US Dollars Other non-financialassets Paraguayan Guarani Argentine Pesos Brazilian Real Unidad deFomento Other financialassets Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos Euros US Dollars Cash andcash equivalents CURRENT ASSETS 131,363,000 191,284,680 136,242,116 14,138,161 12.31.2017 10,611,607 39,750,597 75,797,942 13,647,997 19,681,449 5,370,232 5,611,861 43,857,361 33,834,631 30,870,192 75,387,122 21,779,408 80,985,719 3,046,600 5,172,144 1,673,147 3,049,402 6,804,997 6,973,298 6,901,935 1,447,790 THCH$ 262,204 541,579 401,476 632,428 123,569 181,414 112,763 366,595 16,674 70,975 17,245 9,790 - 144,709,348 190,524,354 141,263,880 60,152,627 12.31.2016 12,122,910 51,163,685 34,276,101 33,859,436 71,977,019 53,868,075 53,073,628 5,788,683 8,601,209 41,670,656 74,902,213 26,072,201 48,891,546 5,469,362 5,788,683 5,857,495 5,830,276 4,699,975 8,115,946 5,105,633 1,265,303 2,354,310 1,773,583 1,584,577 THCH$ 589,724 370,574 308,578 37,052 4,926 6,634 - - - - 156 - 156 -

Coca‑Cola Andina • Annual Report 2017 Brazilian Real Chilean pesos Goodwill Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos US Dollars Intangible assets other thangoodwill Argentine Pesos Brazilian Real Chilean pesos Investments accounted for undertheequitymethod Chilean pesos Accounts receivable from related parties Paraguayan Guarani Argentine Pesos Chilean pesos Unidad deFomento Trade andother receivables Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos Unidad deFomento Other non-financialassets Argentine Pesos Brazilian Real Chilean pesos Other financialassets Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos Unidad deFomento Euros US$ Dolares US Dollars Total Current Assets Brazilian Real Current taxassets NON-CURRENT ASSETS

663,272,878 484,010,050 162,825,074 307,165,028 93,598,217 47,394,345 74,259,085 188,401,129 132,815,546 204,755,804 86,809,069 12.31.2017 72,488,336 53,019,531 33,789,538 45,334,405 10,649,127 2,395,851 63,531,839 24,720,015 95,346,413 15,330,934 9,523,767 3,959,421 2,335,322 2,212,688 1,626,255 8,514,558 THCH$ 156,492 156,492 395,857 392,211 922,226 58,336 37,828 2,193 ------102,919,505 680,996,062 552,742,397 208,399,580 306,067,525 150,820,924 166,763,625 77,197,781 35,246,823 80,180,880 165,295,516 12.31.2016 23,854,602 32,660,854 63,483,009 56,222,385 59,845,345 16,697,871 3,527,732 1,702,296 80,125,090 53,343,179 26,686,075 92,083,905 9,523,767 1,233,441 2,079,079 1,702,296 3,436,831 THCH$ 147,682 147,682 188,472 269,333 320,138 78,455 49,085 5,425 7,021 - - - - - 157 - 157 -

Coca‑Cola Andina • Annual Report 2017 Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos Unidad deFomento Euros US Dollars Total Non-Current Assets Argentine Pesos Deferred incometaxassets Paraguayan Guarani Argentine Pesos Brazilian Real Chilean pesos Euros US Dollars Property, plant andequipment Paraguayan Guarani Argentine Pesos 1,630,849,417 659,750,499 234,278,288 663,556,969 624,634,806 240,781,729 271,391,436 64,443,907 77,580,966 96,532,150 3,212,981 2,335,322 5,362,096 5,362,096 6,913,143 4,672,971 4,149,786 3,212,981 190,365 1,646,367,350 666,150,885 243,615,898 659,123,444 634,426,065 277,939,125 221,111,732 98,669,522 70,894,709 89,379,062 5,787,857 5,787,857 1,038,400 3,706,164 1,038,400 7,298,133 5,972,515 - - - 158 - -158

Coca‑Cola Andina • Annual Report 2017 AS OF DECEMBER 31, 2017 AS OF DECEMBER 31, 2016 - 159 - MORE 90 DAYS UNTIL MORE 90 DAYS UNTIL CURRENT LIABILITIES UNTIL 90 DAYS 1 YEAR TOTAL UNTIL 90 DAYS 1 YEAR TOTAL THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Other financial liabilities 13,536,530 54,444,874 67,981,405 12,287,632 52,512,938 64,800,570 US Dollars 25,540 4,563,131 4,588,671 24,684 6,020,277 6,044,961 Unidad de Fomento 6,735,155 9,892,144 16,627,299 10,035,543 12,637,744 22,673,287 Chilean peso - 10,342,404 10,342,404 - 9,148,589 9,148,589 Brazilian real 5,084,725 15,589,691 20,674,417 1,816,540 22,376,912 24,193,452 Argentine peso 1,691,110 13,185,694 14,876,803 410,865 1,590,238 2,001,103

Paraguayan Guaraní - 871,811 871,811 - 739,178 739,178 Report • Annual 2017 Andina Coca‑Cola

Trade and other accounts payable 251,551,666 5,967,811 257,519,477 240,350,658 2,485,698 242,836,356 US Dollars 11,716,262 29,728 11,745,990 8,331,196 - 8,331,196 Euros 2,202,581 80,070 2,282,651 4,958,363 - 4,958,363 Unidad de Fomento 2,198,131 - 2,198,131 8,312,403 - 8,312,403 Chilean peso 82,576,800 5,823,291 88,400,091 68,190,344 2,466,116 70,656,460 Brazilian real 74,524,169 - 74,524,169 58,354,740 - 58,354,740 Argentine peso 69,859,508 52,403 69,911,911 85,051,314 19,582 85,070,896 Paraguayan Guaraní 8,472,550 (17,681) 8,454,869 7,152,298 - 7,152,298 Other Currency 1,665 - 1,665 - - -

Trade and other accounts payable to related companies 33,728,629 232,808 33,961,437 44,120,335 - 44,120,335 Chilean peso 15,297,780 232,808 15,530,588 12,927,085 - 12,927,085 Brazilian real 18,430,849 - 18,430,849 20,917,319 - 20,917,319 Argentine peso - - - 10,275,931 - 10,275,931

Provisions 2,616,340 60,078 2,676,418 622,993 59,785 682,778 Chilean peso 2,616,340 - 2,616,341 622,993 - 622,993 Paraguayan Guaraní - 60,078 60,078 - 59,785 59,785 AS OF DECEMBER 31, 2017 AS OF DECEMBER 31, 2016 - 160 - MORE 90 DAYS UNTIL MORE 90 DAYS UNTIL CURRENT LIABILITIES UNTIL 90 DAYS 1 YEAR TOTAL UNTIL 90 DAYS 1 YEAR TOTAL THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Income taxes payable 543,874 2,641,091 3,184,965 - 10,828,593 10,828,593 Chilean peso 184,406 - 184,406 - 2,785,425 2,785,425 Brazilian real 359,468 359,468 718,936 – – Argentine peso - 2,155,680 2,155,680 - 7,613,012 7,613,012 Paraguayan Guaraní - 125,943 125,943 - 430,156 430,156

Employee benefits current provisions - 35,955,643 35,955,643 - 35,653,431 35,653,431 Report • Annual 2017 Andina Coca‑Cola Chilean peso - 6,365,543 6,365,543 - 6,177,733 6,177,733 Brazilian real - 16,412,363 16,412,363 - 17,117,494 17,117,494 Argentine peso - 12,371,827 12,371,827 - 11,640,535 11,640,535 Paraguayan Guaraní - 805,911 805,911 - 717,669 717,669

Other non-financial liabilities 648,171 26,359,806 27,007,977 1,705,768 18,907,023 20,612,791 Unidad de Fomento - - - 204,724 - 204,724 Chilean peso 190,529 26,111,396 26,301,926 1,198,755 18,729,079 19,927,834 Argentine peso 457,642 - 457,642 302,289 - 302,289 Paraguayan Guaraní - 248,410 248,410 - 177,944 177,944

Total current liabilities 302,625,210 125,662,112 428,287,322 299,087,386 120,447,468 419,534,854 US Dollars 11,741,801 4,592,859 16,334,660 8,355,880 6,020,277 14,376,157 Euros 2,202,581 80,070 2,282,651 4,958,363 - 4,958,363 Unidad de Fomento 8,933,286 9,892,144 18,825,430 18,552,670 12,637,744 31,190,414 Chilean peso 100,865,856 48,875,441 149,741,297 82,939,177 39,306,942 122,246,119 Brazilian real 98,399,211 32,361,522 130,760,733 81,088,599 39,494,406 120,583,005 Argentine peso 72,008,260 27,765,604 99,773,864 96,040,399 20,863,367 116,903,766 Paraguayan Guaraní 8,472,550 2,094,472 10,567,022 7,152,298 2,124,732 9,277,030 Other Currency 1,665 - 1,665 – – – AS OF DECEMBER 31, 2017 AS OF DECEMBER 31, 2016 - 161 - MORE THAN 3 MORE THAN 3 MORE THAN 1 YEARS UNTIL 5 MORE THAN 5 MORE THAN 1 YEARS UNTIL 5 MORE THAN 5 NON-CURRENT LIABILITIES UNTIL 3 YEARS YEARS YEARS TOTAL UNTIL 3 YEARS YEARS YEARS TOTAL THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ Other financial liabilities 8,185,760 8,153,246 659,428,194 675,767,201 45,118,483 30,672,918 645,779,186 721,570,587 US$ Dollars 513,788 - 350,016,750 349,502,962 - - 379,760,266 379,760,266 Unidad de Fomento - 2,092,245 298,725,592 300,817,836 25,399,983 23,132,311 258,325,173 306,857,467 Brazilian real 8,699,549 6,061,002 10,685,852 25,446,403 19,361,706 7,540,607 7,693,747 34,596,060 Argentine peso - - - - 356,794 - - 356,794 Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola Trade and other payables 1,132,926 - - 1,132,926 9,509,827 - - 9,509,827 US$ Dollars 748,565 - - 748,565 1,200,187 - - 1,200,187 Unidad de Fomento - - - - 8,003,199 - - 8,003,199 Chilean peso 356,221 - - 356,221 304,124 - - 304,124 Argentine peso 28,140 - - 28,140 2,317 - - 2,317

Provisions 62,947,748 - - 62,947,748 72,399,115 - - 72,399,115 Chilean peso 5,000,000 5,000,000 Brazilian real 56,607,720 - - 56,607,720 71,115,841 - - 71,115,841 Argentine peso 1,340,028 - - 1,340,028 1,283,274 - - 1,283,274

Deferred income tax liabilities 19,317,807 91,769 105,794,989 125,204,566 13,035,795 14,627,908 97,945,099 125,608,802 Chilean peso 252,448 91,769 92,319,662 92,663,879 - - 97,945,099 97,945,099 Brazilian real 19,065,360 - - 19,065,360 16,659,246 - - 16,659,246 Argentine peso - - - - (3,623,451) - - (3,623,451) Paraguayan Guaraní - - 13,475,327 13,475,327 - 14,627,908 - 14,627,908

Post-employment benefit liabilities 359,760 62,742 7,863,853 8,286,355 364,502 - 7,793,243 8,157,745 Chilean peso 163,756 62,742 7,863,853 8,090,351 181,257 - 7,793,243 7,974,500 Paraguayan Guaraní 196,004 - - 196,004 183,245 - - 183,245 AS OF DECEMBER 31, 2017 AS OF DECEMBER 31, 2016 - 162 - MORE THAN 3 MORE THAN 3 MORE THAN 1 YEARS UNTIL 5 MORE THAN 5 MORE THAN 1 YEARS UNTIL 5 MORE THAN 5 NON-CURRENT LIABILITIES UNTIL 3 YEARS YEARS YEARS TOTAL UNTIL 3 YEARS YEARS YEARS TOTAL THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$ THCH$

Other non-financial liabilities - - - - 158,790 - - 158,790 Brazilian real - - - - 158,790 - - 158,790

Total non-current liabilities 91,944,002 8,307,759 773,87,036 873,338,796 140,586,512 45,300,826 751,517,528 937,404,866 US$ Dollars 234,777 - 350,016,750 350,251,527 1,200,187 - 379,760,266 380,960,453 Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola Unidad de Fomento - 2,092,246 298,725,592 300,817,837 33,403,182 23,132,311 258,325,173 314,860,666 Chilean peso 5,772,425 154,511 100,183,515 106,110,451 485,381 - 105,738,342 106,223,723 Brazilian real 84,372,628 6,061,002 10,685,852 101,119,482 107,295,583 7,540,607 7,693,747 122,529,937 Argentine peso 1,368,168 - - 1,368,168 (1,981,066) - - (1,981,066) Paraguayan Guaraní 196,004 - 13,475,327 13,671,331 183,245 14,627,908 - 14,811,153 Details ofthefeespaidtoexternalauditorsaredetailedasfollows: NOTE -AUDITORS’ 30 FEES These disbursementsbycountryaredetailedasfollows: measure industrialwasteflows,laboratoryanalysis,consultingonenvironmentalimpactsandothers, The NOTE –THE ENVIRONMENT 29 (unaudited) Total Paraguay Brazil Argentina Chile Remuneration of theAuditor for auditingservices Company COUNTRY has made disbursements DESCRIPTION RECORDED AS EXPENSES 1,947,806 1,061,569 464,022 357,999 THCH$ 64,216 totaling PERIOD ENDED2017 ThCh$ CAPITALIZED TOPROPERTY, PLANT ANDEQUIPMENT 2,184,723 236,917 167,228 THCH$ 69,689 - - for improvements 12,31,2017 805,381 THCH$ TO BERECORDEDAS EXPENSES THCH$ 7,061 7,061 in industrial - - - FUTURE COMMITMENTS processes, PROPERTY, PLANT AND TO BECAPITALIZED TO 12,31,2016 845,770 THCH$ EQUIPMENT 18,389 THCH$ 18,389 equipment - - - to - 163 - 163 -

Coca‑Cola Andina • Annual Report 2017 will general, Ventures, S.A.,itsdirectandindirectownershipintheequitycapitalofNovaverde, wouldbeapproximately35%, and (iv)Coca-Cola EmbonorS.A.willown1 Should thorization ofthetransactionbyChile’sNational EconomicProsecutor’sOffice, Siemel S.A.asseller, Once price maybeamendedbasedonthepurchaseadjustmentssetforthinAgreement, 1,785,374 Pursuant avocado salesandGeneral Mills, position asofDecember31,2017, Except Novaverde In Andina A NOTE 31 – SUBSEQUENT EVENTS stock this own the Agreement for purchase the S.A., mainly 2,999,994 sale Unidades to the S.A. transaction the Embonor aforementioned, has (“Novaverde”) Agreement under and been the de shares, sale parties Fomento, the perfected, materialize, S.A., agreement Guallarauco materialization agreed (ii) Coca-Cola dedicated there Coca-Cola less the to the are (the the shareholdings the del purchase brand, no to “Agreement”) terms value de subsequent Valle the will share, AsEmbotelladoraAndinaS.A.isashareholderofCoca-Cola delValle New Chile of The and processing occur New price the conditions Transaction S.A. in financial Ventures, after events Novaverde has of will 100% and been certain own that for debt commercialization does of S.A., entered transferring 3 may will the preceding of shares, not and Novaverde be shares significantly into as contemplate Coca-Cola (iii) follows: on 100% of conditions, Embotelladora January Novaverde at of affect ownership the (i) de fruits, the Coca-Cola time Chile 5, the including 2018, acquisition would ice the Company’s S.A., of Andina cream, by transaction the del be and as shares but Valle around buyers, of between S.A. vegetables not consolidated the New of will limited materializes. Comercializadora business the and Embotelladora Ventures, own equivalent Inversiones and to, 2 financial lines food shares; the This S.A. au- in of of

- 164 - -164

Coca‑Cola Andina • Annual Report 2017 statements in accordance with International Financial Reporting Standards; this includes the design, this includes Standards; Reporting Financial with International accordance statements in financial consolidated these of presentation fair and preparation the for responsible is Management Management’s ResponsibilityfortheFinancialStatements year thenended,andtherelatednotestofinancialstatements. the related consolidated statements of income, changes in stockholders’ equity, and cash flows for the and 2017 31, December of as sheets balance consolidated the comprise which subsidiaries, its and Embotelladora of statements S.A. financial Andina consolidated accompanying the audited Wehave S.A. Andina Embotelladora Shareholders andDirectors To Independent Auditor’s Report the overallpresentationofconsolidatedfinancialstatements. evaluating as well as management, by made estimates accounting significant of reasonableness the and used policies accounting of appropriateness the evaluating includes also opinion. audit such An expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no order to design audit procedures that are appropriate in the circumstances, but not for the purpose in of statements financial consolidated the of presentation fair and preparation entity’s the to relevant whether due to fraud or error. In making those risk assessments, the auditor considers internal control including the assessment of the risks of material misstatement of the consolidated financial statements, in the consolidated financial statements. The procedures selected judgment, depend on the auditor’s An audit involves performing procedures to obtain audit evidence about the amounts and disclosures whether theconsolidatedfinancialstatementsarefreefrommaterialmisstatement. about assurance reasonable obtain to audit the perform and plan we that require standards Those audits. Weaccepted inChile. standards generally with auditing conducted ourauditsinaccordance our on based statements financial consolidated these on opinion an express to is responsibility Our Auditor’s Responsibility consolidated financial statements that are free from material misstatement, whether due to fraud or error. implementation, and maintenance of internal control relevant to the preparation and fair presentation of - 165 - -165

Coca‑Cola Andina • Annual Report 2017 In our opinion, the consolidated financial statements referred to above present fairly, material present all above in to referred statements financial consolidated the opinion, our In Opinion for ourauditopinion. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis Santiago February27,2018 observations onFebruary28,2017. any without report their issued who auditors other by audited were 2016 31, December ended year the for subsidiaries its and S.A. Andina Embotelladora of statements financial consolidated The Other matter with InternationalFinancialReportingStandards. accordance in ended then year the for flows cash their and operations their of result the and 2017 respects, the financial position of Embotelladora Andina S.A. and its subsidiaries as of December 31, EY Audit SpA. EY Audit - 166 - -166

Coca‑Cola Andina • Annual Report 2017 article 146andfollowingofChileanCorporation’s Law; The Shareholders’Registry wouldcloseonthefifth businessdaypriortothepaymentdate,forofthese dividends. Report 8) Appoint theCompany’s rating agenciesfortheyear2017; 7) Appoint theCompany’s independentauditorsfortheyear2017; 6) and expensesincurredbybothCommittees; If Ch$20.9 (Twenty and9/100ChileanPesos) perSeries BShares. b) Ch$19.0(Nineteen and0/100ChileanPesos) perSeries AShares; and a) Propose Registry wouldcloseonthefifth businessdaypriortothepaymentdate, forpaymentofthesedividends. If Ch$20.9(Twenty and9/100 ChileanPesos) perSeries BShares. b) Ch$19.0(Nineteen and0/100ChileanPesos) perSeries AShares and; a) following amounts: III. Propose the to Shareholders ofaFinal Dividendcharged against distribution 2016fiscal year, for the Ingeneral,toresolveeveryothermatterunder itscompetencyandanyothermatterofCompany interest. 10) Determine 9) Law Determine 5) The 1) followingII. The willbediscussed matters at the Regular Meeting: Shareholders Company’s offices located at Av. Miraflores Borough ofNº9153, Renca, Santiago. I. To convene aRegular Shareholders’ Meeting (the “Meeting”) for 26, 2017, April a.m.,at at 10:00 The Material events for the period January 1through December 31,2017 MATERIAL EVENTS ) To revokeandrenewtheBoardofDirectorsinitsentirety; 4) PresentCompany dividenddistributionpolicyandinformaboutthepaymentproceduresutilized; 3) Earningsdistributionanddividendpayments; 2) with respecttotheFinancial Statements; the the following and Shareholders’ Shareholders’ to of Annual Shareholders the on was members Board the the Report, resolved, Meeting compensation newspaper Meeting agreements the of Balance among distribution approves the approves where Audit for and which other payment directors, Committee regular payment Financial of matters, took an Additional and of place Directors’ of these Statements at required special these a after Company’s dividends, Dividend additional Committee shareholder that by for Sarbanes last the they Regular charged Shareholders dividends, year members will meetings & 2016; be Board Oxley to paid accumulated pursuant they as notices Meeting, Act of beginning well Directors’ will of as the to be and the article relating earnings, paid United on invitations Report Meeting May beginning 50 to States; 30, bis for of operations of 2017. held shall the Independent Chilean their on following February The be August published; annual referred Shareholders’ Corporation’s amounts: 28, Auditors 31, reports 2017: 2017. to and by

- 167 - 167 -

Coca‑Cola Andina • Annual Report 2017 . The 7. TheappointmentofErnst&Young astheCompany’s independentauditorsfortheyear2017; 6. incurred bybothCommittees; Fitch Rating andStandard&Poors asthe Company’s internationalratingagencies, fortheyear2017; Law . To revokeandrenewtheBoardofDirectorsinitsentirety, beingcomposedbythefollowingmembers: 4. TheapprovalofCompany dividenddistributionpolicyandthepaymentproceduresutilized; 3. Theapprovalofearningsdistributionanddividendpayments; 2. as theReport ofIndependentAuditors withrespecttothepreviouslymentionedFinancial Statements; . The 5. . The 1. among others: followingThe were resolutions adopted at the Shareholders’ 26, 2017, Meetingheld onApril General as membersoftheDirectors’Committee establishedbyarticle50bisoftheChileanCorporate Law. Appoint 2) Directors. Appoint 1) followingThe was approved at aCompany’s Regular 26, ofDirectors’ 2017: Meeting heldApril Board Series A:Series and • • • • • • • • • • • • members Juan ClaroGonzález Eduardo ChadwickClaro Karim Yahi Susana Tonda Mitri Salvador Said Somavía Gonzalo Said Handal Enrique Rapetti Gonzalo Parot Palma. Independiente Arturo Majlis Albala Pilar LamanaGaete. Independiente José AntonioGarcés Silva Juan AndrésFontaine Talavera appointment approval approval Mrs. Mr. Juan of Pilar of of the the compensation of Lamana Claro Annual Audit Fitch González Ratings Committee Gaete Report, for and Clasificadora Directors as Statements Mr. established Chairman Gonzálo and de of members and pursuant Financial Parot Riesgos Mr. Palma, Series B: Series Eduardo Limitada of to Position the the as • • Independent Sarbanes-Oxley Georges deBourguignon Mariano Rossi Directors’ Chadwick and and ICR Financial Committee as Claro Directors, the Act; Statements Company’s as their Vice-Chairman pursuant and annual Mr. for local Salvador the to report rating Chilean year of and Said 2016; the agencies Corporate expenses Board Somavia as well and of

- 168 - -168

Coca‑Cola Andina • Annual Report 2017 sales andGeneral Mills representation. Regarding announcements shouldbepublished. . The 9. regarding operationsthattookplaceafter thelastGeneral Shareholders’Meeting; and, business daypriortopaymentdate. general, Novaverde In Chile S.A.,asbuyers,andInversiones Siemel S.A.asseller, haveentered intoastockpurchaseagreement(the“Agreement”). On Dividend: Interim 27, 2017,agreedtodistributethefollowingamountsasinterimdividend: As Additional Dividend: business daypriortopaymentdate. Payment Final Dividend: The 8. This Payment and anAdditional dividendcharged toaccumulatedearningsinthefollowingamounts: 25, 2018.TheShareholders’Registry will closeonthefifth businessdayprior tothatdate,forpaymentofthisdividend. As 26, 2017.TheShareholders’Registry willcloseonthefifth businessdaypriortothatdate,forpaymentofthisdividend. 21, 2017,agreedtodistributethefollowingamountsasinterim dividend: This this

authorized authorized January dividend dividend • • • • • • • • Agreement Ch$20.9 (twentypointnineChileanpesos)pereachSeries BShares. Ch$19.0(nineteenpointzeroChileanpesos)pereachSeries AShares;and Ch$20.9 (twentypointnineChileanpesos)pereachSeries BShares. Ch$19.0 (nineteenpointzeroChileanpesos)pereachSeries AShares;and Ch$20.9 (twentypointnineChileanpesos)pereachSeries BShares. Ch$19.0 (nineteenpointzeroChileanpesos)pereachSeries AShares;and ) Ch$23.65(twenty-threepointsixty-fiveChileanpesos)pereachSeries BShares. Ch$21.50(twenty-onepointfifty Chileanpesos)pereachSeries AShares;and b) a) mainly of of approval appointment paragraph S.A. this this 5,

will will by by 2018, under (“Novaverde”), final final the the the be be of Regular Regular Embotelladora paid paid parties the dividend 2 dividend the of above, report El charged charged brand agreed Mercurio Shareholders’ Shareholders’ the will a will on Guallarauco. Chilean to Shareholders’ to to be Board be Andina income income the available from available terms agreements company Meeting Meeting Santiago, S.A., from from The and beginning beginning Meeting Embonor transaction the the conditions

held held dedicated as 2017 2017 in

April the accordance April approved August fiscal fiscal May S.A., newspaper for does 26, to 26, transferring 30, year produce year

2017, Coca-Cola 2017, 31, not payment 2017. with 2017. and and include the where the articles will and will The Board The Board 100% del of be be commercialize Company the Shareholders’ a Shareholders’ Valle available available

146 Final of of ownership acquisition

Directors Directors and New Dividend notices to forward to Ventures shareholders shareholders of during Registry of juices, during Registry the the and charged of shares business

Chilean session shareholders’ S.A., ice session will will cream, of to beginning beginning and close close Comercializadora 2016

held held Corporate line Coca-Cola and on on

September Fiscal of December meetings the the avocado October January food Law, Year fifth fifth de in

- 169 - -169

Coca‑Cola Andina • Annual Report 2017 The The the ChileanAntitrustAuthorities. Fomento, indirect ownershipintheequitycapitalofNovaverde, willbeapproximately35%. Once may bemodifiedbasedoncertainadjustmentssetforthintheAgreement. will shares, own transaction purchase materialized, (ii) 1 less Coca-Cola share. price the is Since value subject the of de the property Embotelladora of Chile to Novaverde’s 100% certain S.A. of of Novaverde will the conditions own Andina financial shares 3 shares, will of precedent, S.A. debt would be is as (iii) at a follows: the shareholder be Embotelladora including time around (i) the Coca-Cola the transaction but of equivalent Coca-Cola Andina not limited del materializes. S.A. Valle in del to, will Chilean New Valle the own authorization Ventures New The Pesos 2 shares; Ventures previously of S.A. 1,785,374 and of will S.A., (iv) the mentioned own Embonor transaction its Unidades 2,999,994 direct price S.A. and de by - 170 - 170 -

Coca‑Cola Andina • Annual Report 2017 2 EBITDA: Operating Income +Depreciation 1 Operating Income considers NetSales, CostofSales, Distribution Costs, andAdministrative Expenses includedintheFinancialStatementsfiled we includequarterlyandaccumulatedfiguresinnominallocalcurrency. same Figures ANALYSIS OF THE RESULTS OF THE CONSOLIDATED FINANCIAL STATEMENTS • • with theChileanSuperintendence ofSecurities andInsurance anddeterminedinaccordance toIFRS. • • • quarter the quarter million respect Consolidated regarding thepreviousyear. Consolidated to respect Net Consolidated increase withrespecttothepreviousyear. quarter Consolidated respect tothepreviousyear. the million, to thepreviousyear. 128 basispointswithrespecttothepreviousyear. included the previous Income previous or same

to to during of of increasing accumulated in

the the the the this attributable quarter year.

year. same Net previous EBITDA2 Sales Operating previous previous the analysis Sales Accumulated Accumulated

quarter. quarter Volume 30.2% of period year. the for year. to increased are year. Income1 the with previous

the of EBITDA EBITDA set for Consolidated

of the controllers Accumulated quarter EMBOTELLADORA ANDINA S.A. EMBOTELLADORA ANDINA S.A. according the respect the Consolidated

consolidated previous for 8.1% ENDEDDECEMBER 31, 2017 quarter previous year. margin Margin the amounted to with for Accumulated to

quarter the year. Accumulated was IFRS, the consolidated reached respect for year, previous Net Sales

Net 221.0 quarter the to reached in respectively. Sales

margin Ch$524,298 period Volume to nominal 20.3%, million year. Net the reached reached EBITDA Operating Ch$82,094

reached same reached Income Net an reached Chilean unit For Ch$44,109 expansion Margin Ch$1,848,879 quarter million, reached cases, a

18.3%, 8.4%, attributable better Income 756.3 Pesos. million, for of growing

growing an an of Ch$337,890 understanding the million, million the

All expansion 134 expansion reached previous million, period to increasing variations basis 1.4% 1.0% the representing unit controllers Ch$238,726 points reached

of million, regarding regarding of representing year cases,

141 are 78 of 13.0% and

the basis with basis calculated 6.4%, decreasing increasing a analysis reached reached regarding the the 21.2% respect

points points million, a same an same 4.0% regarding increase expansion

with with per Ch$106,431 Ch$117,836 to 2.9% 8.6% quarter quarter the the an increase country,

respect respect 11.7% same same with with with the of of of

- 171 - 171 - Coca‑Cola Andina • Annual Report 2017 Chief Executive Officer Comment by Mr. Miguel Ángel Peirano, tons as 30% an Coca-Cola, us toaccompanythechoiceofconsumerswhowantcontinueenjoyingoriginaltaste main Sin and At shares inallourfranchisesduringthisperiod. the by expanded were to quality showed “Despite these, different the 21.2%. example efficiency Azúcar, EBITDA of the also operations. end of plastic

positive amount better the positive execution On 134 of but of changing in complex margin 2017 of the basis which per line without known

financial our of Additionally, during other year. we with resin of points processes. is was our realities launched macroeconomic as sugar. the We hand, The

used the results triple 18.3%, operators, launch reaching are fourth Coca-Cola In by we income of impact convinced Thus,

the in addition, an our the have

of the quarter: expansion Coca-Cola a 20.3%, mineral Vital environments the constant four attributable initiatives, been scenario Company’s

we company’s ecoflex that operations consolidated focused and have water Full of initiatives review faced 78 income in contribute continued Red to bottles, global base where December on consolidated the and of by campaign,

market the EBITDA points company’s of attributable the strategy ability which we social, company. to to countries operate 2017 work the at execution, to is grew a starting EBITDA for economic sustainable adjust equivalent consolidated in controllers on to These the and Chile, by in reducing the our brand. 8.1%, which to which a grew

Company’s results continuous serve and pricing which to development grew consolidated level, a This the we 8.6% generated environmental reduction the

are will operate, weight and 30.2%. is

with market the over controllers a allow search packaging product consequence expansions increased of the of of Financial EBITDA during us with our our more previous of impact to packaging, that improving business.” Coca-Cola reduce increased strategies than 2017 margin market results allows in

of such year

our 217 the we by

- 172 - 172 -

Coca‑Cola Andina • Annual Report 2017 Brazilian decrease inChile. in pectively. full 3.6% of figures.WhiletheBrazilianReal appreciatedby4.9%generatingapositiveaccountingimpactuponconversionoffigures. Net Consolidated raw materials(ii)theshift inthemixtowardsproductsthatcarryahigherunitcost. resulting Real Consolidated and Consolidated Consolidated vs. 4th Quarter2016 4th Quarter2017 ciated Paraguayan All CONSOLIDATED SUMMARY the 2016, from alloursubsidiaries. devaluation advertising freight The expenses inArgentina. Consolidated EBITDAamountedtoCh$106,431million,growing8.1%.Margin was20.3%. Margin was15.7%. nominal figures Brazilian Income year by foregoing and and mainly against and price the the from Real, The 3.5%, included expenses terms. services Guaraní attributable of Argentine

increases Paraguayan Cost Net Real, Selling, Sales explained the Argentine

mentioned the the the respectively, Sales

Chilean of reformulations Chilean On Argentine the Volume

provided appreciated Sales in in General average reached Chilean in Peso, this Brazil to by Peso,

Guarani Argentina decreased Peso impacts, the the Peso for analysis generating depreciated by controllers Peso, and and the increase during Ch$524,298 by the Peso by and third we 14.5% against Brazilian Chile. Administrative 8.6%, quarter led

the by and and the

are have the

parties, to 1.1%, of a Brazilian Paraguayan and set for Paraguay. the This a 4.2 against negative quarter, volume the performed. Consolidated reached

million, Real according which the 3.3%, Paraguayan %, Chilean was (ii) quarter and and the Real higher of

Expenses the respectively, partially accounting is This 221.0 0.9%, a

Guaraní our mainly U.S. the 1.0% This Argentine Peso, to and was was Operating operations Guaraní Paraguayan freight IFRS, million Dollar

respectively. was offset growth, the

Ch$44,109 explained (SG&As) (ii) partially appreciated impact

generating partially Paraguayan in the expenses Peso by by unit against nominal Income explained 12.1%, positive in (i) Guaraní

decreased due offset by depreciated cases, Brazil inflation The million, offset

(i) against the to a in

while Argentine the of Guarani Chilean negative by effect the growing Brazil by and

U.S. by Ch$82,094 depreciated

devaluation the a in the by conversion (i) the the 21.2% Paraguay, by over Argentina Dollar, negative 0.7%, the previously and Pesos. Brazilian accounting U.S. against 13.6% 1.4% Peso higher dollarized growth Paraguay, which Dollar and million,

against of and with All and effect of against

the the that

cost mentioned (iii) Real, figures. the variations and partially respect

is impact Argentine by Chilean impacts costs upon the of and Paraguayan the mainly a 1.4%, net the the 13.0%

U.S. Chilean decreased On (iii) margin of U.S. Chilean due to translation offset

Peso, 4.9% increase dollar regarding explained costs the average the

growth. Peso, greater to Dollar, appreciation same Peso Guaraní the by reached

and and such denominated

Peso the use the conversion in during marketing Operating of by 1.5%,

while (ii) period Brazilian 2016 by volumes of as and volume figures 16.3%, depre (i) 8.4%. sugar lower labor, res- the the the the are of of -

- 173 - 173 -

Coca‑Cola Andina • Annual Report 2017 lower marketingexpensesinBrazil,and(iii)freightcostsBrazil. of Consolidated reached Ch$1,848,879million,a4.0%growth. Net IncomeattributabletothecontrollerswasCh$117,836million,a30.2%growthandnetmargin reached6.4%. Consolidated EBITDAamountedtoCh$337,890million,an8.6%growth.Margin was18.3%. Operating Margin was12.9%. The Consolidated Full Year ended vs. December Full 31,2017 Year ended December 31,2016 labor. of inflationinArgentinaoverexpensessuchaslabor, freightandservicesprovidedbythirdparties,(ii)thegreatercostof direct Consolidated effect overourdollarizedcosts. resulting 2016, foregoing This incidence mainly from was Selling, Cost Sales mentioned lower partially explained of of the Volume Sales volumes General cost offset by increased impacts, of reached the concentrate, and sold, by volume (i) Administrative and led the 756.3 3.4%, to effect (ii) contraction and million a mainly the Consolidated upon (iii) appreciation Expenses unit explained greater translation of cases, our labor Operating (SG&As) franchises of by representing the of (i) costs figures the Brazilian increased Income in greater in Argentina. Brazil, from a Real 2.9% cost of 2.1% our Argentina Ch$238,726 and of decrease This which subsidiaries sugar, the was Chilean is and (ii) mainly with partially million, Chile. increased in respect Peso Argentina explained Consolidated offset an which revenues to increase by the by and (i) has same (i) lower Brazil, that a Net the of positive period 11.7%. effect has Sales costs (ii) a

- 174 - 174 -

Coca‑Cola Andina • Annual Report 2017 base. Por suparte,elEBITDAenmonedalocalcreció 23,8%. SG&As Peso overourcostsexpressedinU.S.Dollars. sales El On theotherhand,inlocalcurrency, EBITDAincreased23.8%. EBITDA The greater marketingexpenses. which Cost Net Sales inlocalcurrencyincreasedby21.8%. offset Net year and90basispointswithrespecttothelastquarter. share Sales vs. 4th Quarter2016 4th Quarter2017 we includefiguresinlocalnominalcurrency. negative BYSUMMARY COUNTRY: ARGENTINA (i) mainly has currency OperatingIncomeincreased23.7%. category, of figures EBITDA expenses a Sales foregoing of to

negative Volume in by is Sales resulting other

increased the

accounting the mainly amounted which reached upon

ascendió soft negative such decreased bottlers for effect effects

was consolidation. drinks explained from the as 12.0% Ch$161,438

to impact partially over freight, a effect led in quarter Ch$23,468 high

$23.468 4.3%, segment Argentina. in to our by of on the an local offset mainly labor, The the 2016 Chilean (i) costs the increased the On Operating million reporting millones,

increased reached U.S. inflation,

depreciation following million, conversion average

are by in and Isolating explained the peso dollars.

Dollar in a services

0.7%,

63.1 nominal 2.2% volume currency Income un

reflecting revenues during (iii) it figures by depreciated crecimiento of points, this With of by reaching increase greater figures 13.6%, provided local the

reduction effect, terms. of 2017 are and respect

having Ch$19,153 increasing effect

3.6% currency set cost which upon the in explained

Sales 63.0 On by de according local by upon

to Argentine of growth. a in

16.3% average 3,6%. consolidation. third direct the has million PET Volume the regarding currency million, 130 translation Chilean a water by resin, generating parties El negative EBITDA basis incidence to

during the Margen unit Peso IFRS, would a category. these and points implementation the 3.7% peso, which cases, For depreciated

of the

effect in Margin reporting (iv) have over EBITDA figures. a expenses a

increase. nominal quarter,

it negative with better the explained have The depreciated over grown concentrate

was respect effect aforementioned In understanding increased currency

our fue against the Chilean increased Operating 14.5% local accounting 2.6% of

of 14,5%, costs Argentine by

to price the by currency

the the an costs, the during Pesos. upon 14.5%, in above devaluation

expansion

una 33.6%, same volume increases U.S. Margin dollars. impact (ii)

of Peso consolidation Sales expansión All the they local therefore Dollar Argentine period increased mainly variations

period. growth depreciated was With increased Volume on

of that inflation, of

21 the of 11.9%. the respect

de was explained generating 12.1% basis the Our Operations, of labor conversion Argentine of 21 regarding considers

the previous by partially

figures. In and

against market puntos points. which 14.1% to costs, juice local the (ii) by a

- 175 - 175 -

Coca‑Cola Andina • Annual Report 2017 regarding explained bytheimplementationofpriceincreasesandpartiallyoffsetdropinvolumes. 22.9%, Costs by Sales Full Year ended vs. December Full 31,2017 Year ended December 31,2016 EBITDA was 11.2%.InlocalcurrencyOperatingIncomeincreased32.6%. labor The effect oflocalinflationoverexpensessuchasfreight,labor, andservicesprovidedbythirdparties. SG&As Argentine pesooverourU.S.Dollardenominatedcosts. the otherhand,EBITDAMargin inlocalcurrencygrewby30.9%. the foregoing Volume costs, of implementation which increased Sale amounted the mainly increased reached reporting is mentioned mainly 8.0% resulting to 211.4 Ch$79,471 5.4%, of explained currency in price impacts, million the which from reporting increases, upon million, by high unit led is (i) mainly to cases, the increased local an currency. which an consolidation Operating explained inflation, decreasing 11.5% was revenues, In growth. partially local by Income (iii) 3.4%. the of a currency which figures. EBITDA greater effect offset Net of Ch$61,823 Sales has of by cost In they translation Margin the a local reached direct of increased negative sugar, currency, million, was incidence Ch$553,788 of 14.4% and figures. effect 26.5% an Net (iv) increase over an of the Sales In which the expansion million, concentrate local effect depreciation increased of is currency 12.7%. a of mainly 7.1% of the 56 costs, 25.2%, increase Operating devaluation they explained of basis local (ii) increased points. which increased explained currency Margin by of was the the On by

- 176 - 176 -

Coca‑Cola Andina • Annual Report 2017 figures uponconsolidation.For abetterunderstandingofBrazilianOperations,weincludefiguresinlocalnominalcurrency. expansion of377basispoints.InlocalcurrencyEBITDAincreasedby25.0%. Sales Full Year ended vs. December Full 31,2017 Year ended December 31,2016 SG&As Dollar denominatedcostsand(ii)loweruseofsugarduetothereformulationswehaveperformed. was Sales vs. 4th Quarter2016 4th Quarter2017 Real SUMMARY BY COUNTRY: BRAZIL explained respect all EBITDA In localcurrency, OperatingIncomeincreased31.0%. The marketing expenseswhichwaspartiallyoffsetbygreaterfreightcostsresultingfromtheincreasedvolumesold. dation Net points higherregardingthesameperiodofpreviousyear. by currency SG&As unit cost,and(ii)thegreatercostofsugar. Cost currency, Net Sales increased3.0%,whichismainlyexplainedbytheincreaseinsalesvolume. Cost the alreadymentionedvolumereductionwhichwasnotableto beoffsetbytheimplementationofpriceincreases. lower The and (ii)lowerfreightcostsresultingfromvolumessold. Thiswaspartiallyoffsetbygreaterlaborcosts. U.S. EBITDA 13.9%. Inlocalcurrency, OperatingIncome increased12.2%. sion of207basispoints.Inlocal currencyEBITDAincreasedby10.0%. categories, 3.3%, partially Sales aforementioned foregoing appreciated Dollar of of Volume Volume volume of Sales to decreased decreased Sales which amounted reached it figures. by reached the increased denominated offset the increased decreased except sold, reached Chilean during mentioned is positive against Ch$111,690 In 1.4% 9.2% mainly Ch$164,438 by and to local effects for 0.7% (i) the Ch$35,161 248.9 peso, 1.0%, in (iii) the in 2.9% the the effect costs. currency, quarter impacts, explained the the which appreciation led the U.S. juice it The Dollars. against 2016 which million reporting million, reporting in of appreciated to million, These appreciation Dollar million, following the the is an category. reached are led Net mainly is by Operating the appreciation reporting Regarding unit mainly effects in an to (i) Sales currency by a currency. of nominal U.S. an an increase 0.6% cases, decreased 71.9 8.6%, explained figures the Soft by Operating increase of were decreased explained Dollar, 4.9%, Brazilian Income the million currency, drinks the decrease decreasing and having terms. of In of are partially Brazilian Chilean the 15.2% local therefore revenues by 5.4% of having set market Income unit of by by 20.7% (i) Real a of On according mainly explained direct currency, Ch$28,622 the greater in 2.0% local offset regarding Peso average by cases, Real against a local effect share generating which compared direct of 6.5%. currency positive regarding explained it by Ch$83,811 against volumes currency a depreciated to these mainly (i) during upon in the 2.9% slight the IFRS, Net has million, the our U.S. impact previous with to decreased the Sales a translation a shift increase, the sold, franchises by the mainly by in direct positive the positive million, Dollar, U.S. nominal respect a the the same by quarter, in previous over reached 26.6% and 3.6%. the incidence year. effect Dollar, effect explained 6.0% which impact (ii) our explained accounting period a of mix to in 17.6% Chilean the growth. EBITDA the figures. On Ch$603,898 the costs upon year. upon Brazil which which towards has Brazilian greater average of over reporting over by increase. EBITDA expressed the translation a translation by Pesos. Operating reached (i) In positive impact has is Margin our the the previous lower products local mainly cost during Real a costs cost million, All increase currency positive Operating Margin of currency 64.1 on in marketing impact was variations appreciated sugar Margin of of of explained U.S. 2017 expressed year, the carrying points, 18.5% figures. figures. concentrate, a effect was in conversion upon Dollars. over and the 2.3% explained it Margin volumes was decreased 21.4%, regarding expenses, an Brazilian Pet. 90 by our over a consoli- by In In in growth 17.4%. higher expan- lower basis With 1.4% local local This U.S. U.S. was our (ii) an by of of

- 177 - 177 -

Coca‑Cola Andina • Annual Report 2017 EBITDA amountedtoCh$115,579million,increasing2.7%. Margin was20.9%anexpansionof13basispoints. previous year. OperatingMargin was 13.2%. The SG&As wouldhaveincreased0.9%,whichismainlyexplained bygreaterlaborexpenses. SG&As pressed inU.S.Dollars. positive impactoverourcostsexpressedinU.S.Dollars. Cost the increaseinaverageprices. and higher which Sales Full Year ended vs. December Full 31,2017 Year ended December 31,2016 market Sales vs. 4th Quarter2016 4th Quarter2017 SUMMARY BY COUNTRY: CHILE Cost Net Sales reachedCh$158,834milliondecreasing0.3%,inpartexplainedbytheaforementionedreductionsalesvolume. of theyear, andincreasing30basispointscomparedtothesamequarterofpreviousyear. llarized EBITDA reachedCh$39,382million,a4.2%increase.Margin was24.8%,anexpansionof107basis points year. OperatingMargin was18.0%. SG&As cost ofsugar. in The SG&As wouldhavedecreasedby1.1%,whichismainlyexplainedloweradvertisingexpenses. the partially aforementioned foregoing of of Volume Volume mix have unit Sales Sales share costs, decreased decreased towards a cost. increased offset decreased greater for reached and during mentioned soft This (ii) 8.5%, 1.3% by products effects concentrate drinks the lower 231.0 the was 2.9%, by which which quarter increase 0.1%, impacts, partially use million led reached average against The 2016 that which is is of to mainly mainly following reached are mainly cost, sugar an are of offset led unit is the 68.2 during low Operating the in mainly (ii) to explained explained U.S. due nominal cases, explained in water 67.2 by points an the figures sugar 2017 to the Dollar, Operating explained greater million representing the category. Income appreciation during terms. by the are or by reformulations by which (i) sugar other set cost Chilean other unit the by Income of On the according Net of (i) Ch$28,591 has positive free, operating cases, operating average a period, sugar, Sales the of 0.5% peso a which the of positive shift representing we to reached effect decrease Ch$72,890 and appreciated increasing during Chilean IFRS, income have income in million, have (iii) the impact of performed. the in Ch$551,873 the the mix a explained peso classified nominal classified higher 12.4% quarter, 30 a appreciation million, against shift over towards 0.7% basis which in our cost higher This Chilean by the decrease. under million, the points the under 5.8% has products costs the of Chilean U.S. was mix of concentrate, when a drop higher this this compared Pesos. expressed positive the partially towards a Dollar On 2.1% low in item. item. Chilean compared Peso the the All when in impact by growth, appreciated Isolating offset Isolating other product variations soft sugar to in and 4.2% Peso compared the U.S. drinks to (ii) hand, by over or third explained the which over Dollars. that (i) the sugar this this regarding previous costs category by the volume quarter our greater carry effect, effect, to 4.9% has free, shift the On do- ex- by a a

- 178 - -178

Coca‑Cola Andina • Annual Report 2017 Operating Margin was17.8%.InlocalcurrencyOperatingIncomedecreased2.6%. The freight expenses.Thiswaspartiallyoffsetby(i)lowerdepreciationcharges,and(ii)marketing Cost by theimplementationofpriceincreasesduringperiodandalreadymentionedgrowthinSales Volume. Sales Full Year ended vs. December Full 31,2017 Year ended December 31,2016 EBITDA SG&As products carryingalowerunitcost. (ii) Sales vs. 4th Quarter2016 4th Quarter2017 SUMMARY BY COUNTRY: PARAGUAY Sales Net higher comparedtothesamequarterofpreviousyear. Cost by theimplementationofpriceincreasesduringquarterandvolumegrowths. EBITDA year. OperatingMargin was18.5%.In localcurrencyOperatingIncomeincreased10.7%. volume currency EBITDAincreased6.4%. the sugar, U.S. The costs, and(ii)greaterdistributionfreights,whichwerepartially offsetbylowerdepreciationcharges. SG&As towards productsthatcarryalowerunitcost. 3.3%, Paraguayan Operations,weincludefiguresinlocalnominalcurrency.

greater conversion Sales aforementioned aforementioned of of Dollar Volume Volume reached originating (ii) Sales Sales increased increased of

reached reached reached greater volume all which increased increased during reached categories. Ch$141,277 of

Ch$9,833 a Ch$36,370 volume figures 2.2% Ch$40,168 1.5% sold, has negative effects effects the 65.0 8.8%, a 16.5% and and in quarter positive upon Our sold, million,

the million, million led (iii) accounting in led The respect are Regarding million and and million, volume reporting local and consolidation. to

greater to reached nominal. effect following an in in an

reflecting unit a (iii) currency

local Operating 4.0% to local a Operating market an 2.9% cost the impact greater over cases, the currency. 18.9 currency increase currency

decrease On

U.S. of figures Chilean increase our a they On million maintenance representing share 7.0% on average Income maintenance Income Dollar, costs average In the increased of it

it are and Peso for growth. increased local 8.7%. increased compared unit conversion expressed

set of which EBITDA during soft of during it Ch$7,141 currency cases, according Ch$25,422 and a In depreciated 5.6% drinks In and 4.8% has local 12.7%. 20.5% the repairs. local to

Margin representing 2017, of repair in mainly a the growth, quarter, million, they currency figures reached positive U.S. currency to This mainly previous million, the This IFRS,

by costs. was increased Dollars. explained Paraguayan 3.5%, is explained upon a

the 24.5%. 70.1 impact was Net mainly decrease explained a This in Net an year 5.7% Paraguayan

partially generating nominal consolidation. Sales points Regarding increase 5.8%, Sales

was In over and by explained growth, by

local of increased Guaraní (i) partially by volume increased during EBITDA explained our 5.1 offset greater Chilean

(i) currency of % a Guaraní costs the explained an 7.1% negative compared by

by appreciated For the growths offset increase 12.5%, Chilean (i) Margin labor the 10.8%, Pesos. expressed mainly compared a

quarter, an EBITDA better shift appreciated by accounting increase by costs, which of to in the All was Peso the which by in all the understanding 0.9% the 330

the in 2016 decreased (i) shift growth and to 25.7%. categories. was it previous cost U.S. in greater the mix basis is depreciated against (ii) in the impact 1.5% variations explained explained previous of towards Dollars. the In in greater cost points sugar, 1.2%. labor sales local year. with mix Net the on of of

- 179 - 179 -

Coca‑Cola Andina • Annual Report 2017 Analysis of Financial Assets and Liabilities and Assets Financial of Analysis information Other • • • • • • • • (“CCS”), • Total debt, market, Pesos, come Income in therestatementofaccountsreceivableandfinancialinvestmentsubsidiaries. million • Results during thesamequarterofpreviousyear. ThisismainlyexplainedbylowercontingencyprovisionsinBrazil. • Other is mainlyexplainedbylowerearningsfromourequityinvesteeCMF. • Results million • Net greater financialincome,and(ii)theeffectontranslationoffigures. The Company’s Net DebtincludingthealreadymentionedCCSeffectreachedUS$864.5million. in ChileanPesos, 0.6%inU.S.Dollars,and0.1%Paraguayan Guaraní. visions Dollars. • Financial Financial

including money financial 14.7% in Income loss. expense Tax US$512.7 by financial by Argentina, debt went Investment Adjustment

This markets. in Income and the assets, Brazilian level for from loss million assets CCS Expenses the reached and

is Excluding -Ch$16,966 and amounted in same mainly Units effect, amounted Real, (ii) to Related Expense bonds a account US$1,209.8 quarter and greater 13.3% is explained

CCS 65.2% to Companies in Exchange million account to US$345.3 the

in of recorded in indebtedness US$244.6

Argentine the terms denominated local by million, to recorded previous the -Ch$19,001 Rate Chilean account

million. of a appreciation Ch$4,256

currency million, Differences Pesos, US$575 level a year, market went Ch$11,264 in Excluding million, UFs, of 9.2%

which exposure mainly million million from our of and account 30.5% in the subsidiary are a mainly million the US$122.1 explained UFs, loss Ch$307 of reporting

financial invested in mark-to-market which went compared 5.8% Brazilian due expense, in million from million correspond by

to in assets in currency Argentina. the (i) Paraguayan time to a Real, which the effect loss Ch$899

are the correspond deposits effects restatement

with 2.2% 53.9% to Ch$6,738 to from is This a compared a Ch$431 respect Guaraní, million bond in of

denominated was higher and Cross Argentine to million bank on partially of short-term million to loss operating to contingency the and Currency local the debt. to international loss 3.1% Pesos, a offset currencies, Ch$10,982 loss,

in Ch$2,539 Financial reported

fixed Chilean results. in Swaps which by 1.4% U.S. pro- in- (i)

- 180 - 180 -

Coca‑Cola Andina • Annual Report 2017 Recent EventsRecent • • of Novaverde, willbeapproximately35%. der ofCoca-Cola delValle New Ventures, S.A.,itstotal,directandindirectparticipation,intheshareholdingcapital Andina S.A.willown2shares;and(iv)Embonor1share.AsEmbotelladoraisasharehol- New Ventures, S.A.willown2,999,994shares,(ii)Coca-Cola deChileS.A.willown3shares,(iii)Embotelladora ment. Oncethesalehasbeenperfected,shareholdingsinNovaverde willbeasfollows:(i)Coca-Cola delValle the transaction.Theabovepricemayundergomodificationsbasedoncertainadjustmentssetforthinagree- of 1,785,374UnidadesdeFomento, lessthevalueoffinancialdebtNovaverde atthetimeofmaterialization Prosecutor. Ifitmaterializes,thepurchasepriceof100%sharesNovaverde wouldbearoundtheequivalent conditions habitualinthistypeoftransactions,includingthecorrespondingauthorizationbyNational Economic In accordancewiththetermsofAgreement,purchaseandsalewassubjecttofulfillmentsuspensive representation ofGeneral Mills. Guallarauco. Thetransactiondoesnotincludetheacquisitionofbusinesslinesforsaleavocados,nor processing andcommercializationoffruit,icecream,vegetablesfoodingeneral,mainlyunderthebrandname sale of100%thesharesSociedad Comercializadora Novaverde S.A.(“Novaverde”), acompanydedicatedtothe Siemel S.A.asseller(the“Agreement”). InthisAgreement,thepartiesagreedontermsandconditionsfor Embonor S.A.,Coca-Cola delValle New Ventures, S.A.,andCoca-Cola deChileS.A.,asbuyers,andInversiones On January 5,2018,aStockPurchase andSale AgreementwasenteredintobetweenEmbotelladoraAndinaS.A., - 181 - 181 - Coca‑Cola Andina • Annual Report 2017 At interest andtaxesamountedtoThCh$214,824,353reachingan interestcoverageratioof4.88times. Liquidity The mainindicatorsinthetableabovereflectsolidprofitabilitypositionofEmbotelladoraAndinaS.A.forbothperiods. the previouslyexplainedbetterresultsachieved. II. MAIN INDICATORS Dividends payout ratio -SeriesBshares Dividends payout ratio -SeriesAshares EBITDA margin EBITDA Operating margin Operating income Return over operating assets Return over total assets Return over equity PROFITABILITY Interest charges coverage ratio Long-term liabilitiestototal liabilities Short-term liabilitiestototal liabilities Debt toequityratio INDEBTEDNESS Days of inventory onhand Inventory turnover Investments ACTIVITY Working Capital Acid Tests Current Ratio LIQUIDITY the close and of indebtedness the INDICATOR present fiscal indicators year, operating remain

solid, profitability UNIT Times Times Times Times net MCh$ MCh$ MCh$ MCh$ Days % % % % % % % % % %

financial indicators expense

present 160.06% 313,988 238,726 168,858 16.98% 12.91% 14.62% 67.10% 32.90% DEC-17 20,759 2.72% 2.67% 8.20% 5.46% reached 46.48 4.88 7.74 0.82 1.13 an

improvement ThCh$44,025,994

161.12% 279,904 213,670 128,217 with 15.75% 12.02% 10.97% 69.08% 30.92% DEC-16 2.25% 2.23% 6.24% 4.11% 48.41 3,374 4.38 7.44 0.97 1.32 respect

and earnings to 2016, DEC 17 VS. DEC16 before due 34,084 25,057 40,640 17,386 -2.0% -1.1% -1.92 -0.15 -0.19 0.5% 0.4% 1.2% 0.9% 2.0% 1.4% 3.7% 2.0% 0.50 0.31 to

- 182 - -182

Coca‑Cola Andina • Annual Report 2017 Equity against theU.S.dollarandtransfersofbondquotasinUFs fromnot-currenttocurrentliabilities. conversion financial statements,thatmustbesetaccordingInternationalFinancial Reporting Standards. financial estimate fiscal yearcomparedtothepreviousyear. compared Current to Current Total assetsatthedateofclosing decreasedbyThCh$84,250,280or3.8%comparedtothepreviousyear. The balanceofassetsandliabilitiesattheclosingdatethesefinancialstatementsisfollowing: Assets Company, this decreaseispartiallyoffsetduetotheCompany’s participationinthepurchaseofAdeS businessledbyTheCoca-Cola IV. III. ANALYSIS OF BOOK VALUES AND ECONOMIC VALUE OF ASSETS rights Total liabilities of thecontrolling shareholder Equity attributabletotheowners Non-controlling interests Non-current liabilities Current liabilities Liabilities Total assets Non-current assets Current assets Assets finance

of decreased and liabilities assets that liabilities, distribution which to investment of liabilities the there foreign decrease ANALYSIS POSITION FINANCIAL OF previous meant because mainly basically are are and subsidiaries activities. no recognizing mainly presented of goodwill substantial increased year. because the In distribution In due given the recognized in the of increases due to differences the case lower case lower the to 2,114,859,467 2,114,859,467 financial 12.31.2017 12.31.2017 1,630,849,417 of appreciation the ThCh$ ThCh$ 791,310,056 873,338,796 428,287,322 484,010,050 of of 21,923,293 long-term non-current financial in in final, non-current recognition other between the statements additional foreign non-current debt availability, of the liabilities, the assets, of of subsidiaries economic U.S. according dividends Chilean and the financial interim bonds originating the decrease peso, value 2,199,109,747 2,199,109,747 decrease to 12.31.2016 12.31.2016 payable 1,646,367,350 as resulting ThCh$ ThCh$ 820,605,582 937,404,866 419,534,854 552,742,397 dividends International 21,564,445 assets a partially of result from is assets and is mainly and from of due the offset in increased and intangible the 2017, the to liquidation Financial due appreciation those by the appreciation a higher to decline reduction advanced the reflected assets Reporting of effect earnings in current of other VARIACIÓN VARIATION (84.250.280) (84,250,280) of (29.295.526) (64.066.070) (15,517,933) (68,732,347) resulting revenues other in the of M$ M$ the 8.752.468 the 358.848 Standards. conversion than Chilean of Chilean investments non-current Company’s the goodwill. from received current peso, peso We the on

- 183 - 183 -

Coca‑Cola Andina • Annual Report 2017 compared tothepreviousyear, explainedmainlybygreatershort-termbankloansinArgentina. Financing business leadbyTheCoca-Cola Company, partially offsetbygreaterredemptionoffinancialinvestments. 54,915,093 Investment recorded duringthesameperiodof2016,whichismainlyduetolessflowsfrompaymentssuppliers. Operating During thepresentperiodCompany generatedapositivenetcashflowofThCh$783,168withthefollowingbreakdown: vestments V. ANALYSIS CASH OF FLOW THE MAIN COMPONENTS OF Net cash flow for theperiod Financing Investment Operating Cash flow activities in activities regarding activities equity generated investees generated generated the previous a and positive a a negative negative purchase year, net which (168,831,410) flow (78,345,770) 247,960,348 12.31.2017 flow flow ThCh$ of 783,168 in is in intangibles of the mainly the ThCh$ amount amount explained 78,345,770, related of ThCh$ ThCh$ (113,916,317) (98,224,525) 223,446,560 12.31.2016 11,305,718 to ThCh$ by 247,960,348, disbursements greater representing 168,831,410, investments which representing a by (10,522,550) positive (54,915,093) the 19,878,755 24,513,788 is ThCh$ in higher company property, variation a than negative VARIACIÓN resulting the plant of ThCh$ variation ThCh$ & equipment, from (93.1)% % (20.2)% 223,446,560 11.0% 48.2% 19,878,755 of the ThCh$ AdeS in-

- 184 - 184 -

Coca‑Cola Andina • Annual Report 2017 the company’scashflows. performance A detailedanalysisoftheseandotherrelatedriskscanbefoundintheReport onthefinancialstatements. of rawmaterialsandfixedassets. effect discounts In the to timeandwhichareperiodically informedinreportsfiledbeforetheappropriateregulatory authorities. Commodities Risk Commodities available This Changes in Assets Exchange rate risk which The rate risk Interest are The VI. ANALYSISVI. RISK MARKET OF property, addition, needed Company’s company company document of they purchased the information. in of for are plant the and exchange other are: faces maintains the expressed; may control value depending and or the production bottlers, the contain indexed political of equipment, rate However, risk and investments all UF of in weather which on projections to of sugar, cash and of and market foreign its beverages the whose USD could economic disbursements debt aluminum conditions results or conditions, currency reflecting costs (are liability values materially and that variable). conditions can and in packaging, are exposure: are denominated Embotelladora be the expressed the PET expressed impact finally generated Southern Company As resin on a this obtained which the result, consumer in price in risk at current through Cone U.S. a Andina carries fixed together currency there fluctuations originates are dollars and spending, performance. rates, subject out is time, S.A.’s other a represent other foreign low which variability from depending good on to risk risk than pricing the diverse purchases mainly currency faith factors between of international Among the fluctuations factors expectation pressures on functional variables, correspond that the derivatives 35% of the are would raw volatility factors and markets, resulting given of many materials currency and market 40% to be contracts that are payment applicable of by of these of the based which the from could of and interest production exchange the currencies raw to investments on of competitive change are subsidiary. from lessen suppliers materials currently rates beyond time cost. rate. the the on in

- 185 - 185 -

Coca‑Cola Andina • Annual Report 2017 TWELVE MONTHS RESULTS FOR THE PERIOD ENDED DECEMBER 31, IFRS GAAP (In nominal million Chilean Pesos, except per share) - 186 - JANUARY-DECEMBER 2017 JANUARY-DECEMBER 2016 CHILEAN BRAZILIAN ARGENTINEAN PARAGUAYAN CHILEAN BRAZILIAN ARGENTINEAN PARAGUAYAN VARIATION OPERATIONS OPERATIONS OPERATIONS OPERATIONS TOTAL (1) OPERATIONS OPERATIONS OPERATIONS OPERATIONS TOTAL (1) % VOLUME TOTAL BEVERAGES (Million UC) 231.0 248.9 211.4 65.0 756.3 232.2 266.1 218.7 62.0 779.0 -2.9% Net sales 551,873 603,898 553,788 141,277 1,848,879 540,427 590,146 517,059 132,006 1,777,459 4.0% Cost of sales (328,579) (362,686) (294,371) (85,347) (1,069,025) (319,214) (359,156) (279,308) (78,410) (1,033,910) 3.4% Gross profit 223,294 241,211 259,417 55,930 779,854 221,214 230,989 237,751 53,596 743,549 4.9% Gross margin 40.5% 39.9% 46.8% 39.6% 42.2% 40.9% 39.1% 46.0% 40.6% 41.8% Distribution and administrative expenses (150,404) (157,401) (197,595) (30,508) (535,908) (152,334) (159,699) (182,894) (29,849) (524,776) 2.1% Corporate expenses (2) (5,220) (5,104) 2.3% Operating income (3) 72,890 83,811 61,823 25,422 238,726 68,879 71,290 54,857 23,747 213,670 11.7% Report • Annual 2017 Andina Coca‑Cola Operating margin 13.2% 13.9% 11.2% 18.0% 12.9% 12.7% 12.1% 10.6% 18.0% 12.0% EBITDA (4) 115,579 111,690 79,471 36,370 337,890 112,499 96,957 71,302 35,351 311,004 8.6% EBITDA margin 20.9% 18.5% 14.4% 25.7% 18.3% 20.8% 16.4% 13.8% 26.8% 17.5% Financial (expenses) income (net) (44,026) (41,713) 5.5% Share of (loss) profit of investments accounted for using the equity method (80) (263) -69.4% Other income (expenses) (5) (18,688) (24,392) -23.4% Results by readjustment unit and exchange rate difference (5,134) (6,446) -20.4% Net income before income taxes 170,798 140,856 21.3% Income tax expense (51,798) (48,807) 6.1% Net income 119,001 92,049 29.3% Net income attributable to non- controlling interests (1,165) (1,523) -23.5% Net income attributable to equity holders of the parent 117,836 90,526 30.2% Net margin 6.4% 5.1% WEIGHTED AVERAGE SHARES OUTSTANDING 946.6 946.6 Earnings Per Share 124.5 95.6 Earnings Per ADS 746.9 573.8 30.2%

(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: includes the following lines of the income statement by function included in the published financial statements in the Chilean Superintendence of Securities and Insurance: Net sales, cost of sales, distribution expenses and administrative expenses. (4) EBITDA: Operating Income + Depreciation. (5) Other income (expenses): includes the following lines of the income statement by function included in the published financial statements in the Chilean Superintendence of Securities and Insurance: “Other income”, “Other expenses” and “Other (loss) gains”. TWELVE MONTHS RESULTS FOR THE PERIOD ENDED DECEMBER 31, IFRS GAAP - 187 - (nominal local currency of each period)

JANUARY-DECEMBER 2017 JANUARY-DECEMBER 2016

CHILE BRAZIL ARGENTINA PARAGUAY CHILE BRAZIL ARGENTINA PARAGUAY MCH$ MR$ MAR$ MG$ MCH$ MR$ MAR$ MG$ TOTAL BEVERAGES VOLUME (Million UC) 231.0 248.9 211.4 65.0 232.2 266.1 218.7 62.0

Coca‑Cola Andina • Annual Report • Annual 2017 Andina Coca‑Cola Net sales 551,873 2,976.2 14,202.6 1,227,001 540,427 3,036.9 11,342.7 1,107,678 Cost of sales (328,579) (1,786.8) (7,537.6) (741,161) (319,214) (1,848.6) (6,132.0) (657,750) Gross profit 223,294 1,189.4 6,665.0 485,841 221,214 1,188.3 5,210.7 449,928 Gross margin 40.5% 40.0% 46.9% 39.6% 40.9% 39.1% 45.9% 40.6% Distribution and administrative expenses (150,404) (775.3) (5,076.8) (264,823) (152,334) (819.2) (4,013.0) (250,311) Operating income (1) 72,890 414,2 1,588.2 221,018 68,879 369,1 1,197.8 199,617 Operating margin 13.2% 13.9% 11.2% 18.0% 12.7% 12.2% 10.6% 18.0% EBITDA (2) 115,579 551.3 2,038.5 315,831 112,499 501.1 1,557.4 296,810 EBITDA margin 20.9% 18.5% 14.4% 25.7% 20.8% 16.5% 13.7% 26.8%

(1) Operating Income: Considers the following items included in the financial statements filed with the Chilean Superintendence of Securities and Insurance and set according to IFRS: Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses. (2) EBITDA: Operating Income + Depreciation. at December 31, 2017 andat December 2016 31,2017 SUMMARIZED FINANCIAL STATEMENTS SUBSIDIARIES Cash andcash equivalents at the endof theperiod Cash andcashequivalents atthebeginningof theperiod Effect of of inflation in cashandequivalents Cash flow from financingactivities Cash flows from investment activities Cash flows from operating activities STATEMENTS OFCASH FLOWS Net income(loss) Income taxes Income before incometaxes Non-operating income Operating income INCOME STATEMENT Total liabilitiesandshareholders' equity Accrued earnings(losses) Capital andreserves Non-current liabilities Current liabilities Liabilities Total assets Non-curruent assets Current assets Assets BALANCE SHEET (13,390,218) 67,718,228 67,718,228 (1,208,864) 13,389,306 31,362,623 33,430,899 67,687,830 2,924,706 3,749,295 4,958,159 2,924,706 (824,589) THCH$ 2017 30,398 1,269 EMBOTELLADORA ANDINACHILES.A. 357 - - - (16,807,272) 77,179,391 77,179,391 (1,571,166) (2,842,869) 15,773,314 26,166,698 45,816,768 77,017,895 5,195,925 1,031,750 6,767,091 9,609,960 5,195,925 THCH$ 2016 161,496 1,269 3,477 - - - 188 - -188

Coca‑Cola Andina • Annual Report 2017 at December 31, 2017 andat December 2016 31,2017 SUMMARIZED FINANCIAL STATEMENTS SUBSIDIARIES Cash andcash equivalents at the endof theperiod Cash andcashequivalents atthebeginningof theperiod Effect of of inflation in cashandequivalents Cash flow from financingactivities Cash flows from investment activities Cash flows from operating activities STATEMENTS OFCASH FLOWS Net income(loss) Income taxes Income before incometaxes Non-operating income Operating income INCOME STATEMENT Total liabilitiesandshareholders' equity Accrued earnings(losses) Capital andreserves Non-current liabilities Current liabilities Liabilities Total assets Non-curruent assets Current assets Assets BALANCE SHEET 23,230,920 23,230,920 (2,818,010) 12,924,062 14,625,162 1,154,544 1,664,141 2,092,245 7,672,687 8,605,758 (224,003) THCH$ 541,926 2017 (56,065) 765,929 821,994 541,926 4,686 2,721 1,290 ENVASES CENTRALS.A. 20,863,128 20,863,128 10,953,195 12,353,126 1,641,111 2,117,020 2,140,657 1,641,111 7,335,273 8,510,002 (475,909) (494,297) THCH$ 2016 (51,375) (23,637) 528,650 933,549 15,078 2,721 4,665 - 191 - 191 - Coca‑Cola Andina • Annual Report 2017 at December 31, 2017 andat December 2016 31,2017 SUMMARIZED FINANCIAL STATEMENTS SUBSIDIARIES Cash andcash equivalents at the endof theperiod Cash andcashequivalents atthebeginningof theperiod Effect of of inflation in cashandequivalents Cash flow from financingactivities Cash flows from investment activities Cash flows from operating activities STATEMENTS OFCASH FLOWS Net income(loss) Income taxes Income before incometaxes Non-operating income Operating income INCOME STATEMENT Total liabilitiesandshareholders' equity Accrued earnings(losses) Capital andreserves Non-current liabilities Current liabilities Liabilities Total assets Non-curruent assets Current assets Assets BALANCE SHEET (12,864,760) 20,687,487 20,687,487 (5,543,598) (1,087,929) 18,414,415 17,388,195 3,596,913 4,684,842 4,470,440 3,596,913 5,978,980 1,872,361 9,239,233 3,299,292 THCH$ 2017 214,402 33,894 TRANSPORTES ANDINAREFRESCOSLTDA. 27,837 - (63,323,102) 26,701,463 26,701,463 13,246,492 18,035,370 13,071,359 10,424,882 50,010,230 1,643,970 2,329,766 2,670,905 1,643,970 1,561,252 8,666,093 (341,139) (685,796) THCH$ 2016 27,837 94,217 - - 192 - 192 -

Coca‑Cola Andina • Annual Report 2017