Integrated Annual Report 7 8 CORPORATE EXHIBITS INFORMATION HOME chapter.one | ANDINA AT 2019 INTEGRATED ANNUAL REPORT 2 1 A GLANCE 1 2 3 4 5 6 7 8 ANDINA AT A GLANCE OUR HISTORY SUSTAINABLE VALUE VALUE CREATION WE OPERATE WITH OUR PRINCIPAL METRICS CORPORATE EXHIBITS CREATION STRATEGY INTEGRITY INFORMATION HOME WHAT DO WE DO? 102-6, 102-7, 102-8 INDICATOR 2018 2019 Volume UC 751 million (1) UC 746 million Sales M US$ 2,569 2,495 Ebitda M US$ 502 491 Ebitda Margin (%) 19.52% 19.68% Net income (Income attributable to the owners of the controller ) MM US$ 149 247 Liters of water per liter of produced beverage (2) 2.01 1.96 Percentage of sales returnable formats (3) 31.3% 31.7% Percentage of sales reduced or zero sugar (4) 18.5% 20.8% (8) Percentage recycled residue (5) 84.5% 88.7% (6) Used energy ratio 0.33 0.32 (7) Internal environment favorability 69% 72% (1) UC: Unit Cases 5.678 liters per each unit case. (5) Tons recycled residue / tons total residue generated. (2) Liters used / liters of produced beverage (6) MJ/liters of produced beverage. t Coca-Cola Andina we are present in four South American (3) Volume sold in returnable formats / total volume. (7) Biannual climate survey. (4) portfolio % reduced or zero sugar contents. (8) In 2019 mid-cal sale (less than 5 gr of sugar per each 100 ml) countries (Argentina, Brazil, Chile and Paraguay) and we have 17,586 plus the sale of zero sugar was 28.5% 2019 INTEGRATED ANNUAL REPORT Acollaborators to cover a population of approximately 54 million 3 inhabitants. This allows us to reach 267 thousand customers. We are a Company committed to the production and distribution of soft drinks, water, juices and other products and 4,238 17,586 54 267 our concern is to generate value to all our stakeholders. M liters sold collaborators million consumers thousand clients We want to be present at every moment or occasion of hydration of our consumers, generating close relationships and providing options to each according to their lifestyle. Our success is sustained on having a great team, which is committed to providing value and delivering quality products. 1 2 3 4 5 6 7 8 ANDINA AT A GLANCE OUR HISTORY SUSTAINABLE VALUE VALUE CREATION WE OPERATE WITH OUR PRINCIPAL METRICS CORPORATE EXHIBITS CREATION STRATEGY INTEGRITY INFORMATION HOME SUSTAINABLE VALUE CREATION MODEL ALONG THE VALUE CHAIN 102-9 We create long term sustainable value for all involved in our value chain. We are actively responsible for delivering quality service to our customers and consumers, for which we have a committed team. UPSTREAM The Coca-Cola Company (TCCC). Suppliers of raw materials and services Coca-Cola Andina: At Coca-Cola Andina we produce and We are responsible for promoting a chain of suppliers bottling and packaging distribute The Coca-Cola Company that is environmentally responsible and has respect Process that includes bottling, (TCCC) licensed products in Argentina, for their employees. These include suppliers of raw packaging, all administrative and Brazil, Chile and Paraguay. materials, such as water, energy, sugar, among others. logistics tasks. DOWNSTREAM 2019 INTEGRATED ANNUAL REPORT 4 OPERATION AND LOGISTICS Consumers, recycling and recovery Clients Distribution At Coca-Cola Andina we take care of we generate shared value with the Process that includes distribution to the complete cycle of our packaging, fundamental links of the chain, service customers and distribution centers, it is part of our value creation model. models and the delivery of a differentiated optimizing routes with efficient truck fleets service according to the requirements and (own and third party). needs of our customers. 1 2 3 4 5 6 7 8 ANDINA AT A GLANCE OUR HISTORY SUSTAINABLE VALUE VALUE CREATION WE OPERATE WITH OUR PRINCIPAL METRICS CORPORATE EXHIBITS CREATION STRATEGY INTEGRITY INFORMATION HOME GENERATED AND DISTRIBUTED VALUE: 201-1 2019 generated and distributed value chart: *All figures expressed in Ch$ millions "Materiality goes far beyond economics. It involves the impacts the Company generates on stakeholders, regardless of the economic relevance that this implies." GONZALO SAID Vice Chairman of the Board of Directors 2019 INTEGRATED ANNUAL REPORT 5 1 2 3 4 5 6 7 8 ANDINA AT A GLANCE OUR HISTORY SUSTAINABLE VALUE VALUE CREATION WE OPERATE WITH OUR PRINCIPAL METRICS CORPORATE EXHIBITS CREATION STRATEGY INTEGRITY INFORMATION HOME BROAD PORTFOLIO 102-1 Beer and spirits 2.6% Juices and others 9.9% Water 11.1% rom Coca-Cola brand soft drinks to organic teas and plant-based Soft drinks 2019 INTEGRATED ANNUAL REPORT Fbeverages, we offer some of the 76.5% 6 world's most popular beverages. Our portfolio is evolving to have beverages for all tastes and occasions, with or without sugar. Note: Percentages correspond to sales volume distribution for Coca-Cola Andina as of 12.31.2019. 1 2 3 4 5 6 7 8 ANDINA AT A GLANCE OUR HISTORY SUSTAINABLE VALUE VALUE CREATION WE OPERATE WITH OUR PRINCIPAL METRICS CORPORATE EXHIBITS CREATION STRATEGY INTEGRITY INFORMATION HOME LEADERS IN THE REGION 102-6, 102-7 9% 9% 12% 16% 24% 22% 32% Volume Revenues Ebitda 34% 38% 34% 35% 35% Argentina Brazil Chile Paraguay Extension (in kilometers): ARGENTINA CHILE • Territory: Córdoba, Mendoza, San Juan, San Luis, Neuquén, • Territory: Antofagasta, Atacama, Coquimbo, Metropolitan almost all of the province of Santa Fe, Entre Ríos, Western Region, San Antonio, Cachapoal, Aysén and Magallanes. province of Buenos Aires, La Pampa, Chubut, Río Negro, Santa 2019 INTEGRATED ANNUAL REPORT Cruz and Tierra del Fuego. • Population: 9.9 million. 7 • Population: 13.9 million. • Total volume 2019: 239.6 million UC. • Total volume 2019: 178.2 million UC. BRAZIL PARAGUAY • Territory: Majority of the state of Rio de Janeiro, Espírito • Territory: All of the Paraguayan territory. Santo, part of São Paulo and part of Minas Gerais. • Population: 7.2 million. • Population: 23.1 million. • Total volume 2019: 69.3 million UC. • Total volume 2019: 259.3 million UC. 1 2 3 4 5 6 7 8 ANDINA AT A GLANCE OUR HISTORY SUSTAINABLE VALUE VALUE CREATION WE OPERATE WITH OUR PRINCIPAL METRICS CORPORATE EXHIBITS CREATION STRATEGY INTEGRITY INFORMATION HOME CONTACT SCOPE OF THE INTEGRATED ANNUAL REPORT INFORMATION 102-45, 102-46 102-53, 102-3; 102-4; Corporate office ABOUT OUR INTEGRATED ANNUAL REPORT PREPARATION CRITERIA Av. Miraflores 9153, Piso 7, Renca, Santiago de Chile Tel. (56 102-49 102-46; 102-52, 102-54;102-12 2) 2338 0520 | www.koandina.com In 2019 we present our Second Integrated Annual Report, which • It follows the guidelines developed by the GRI (Global Reporting Investor relations contact information reflects the advances in integrating sustainability into our business Initiative – GRI) standard, under the comprehensive compliance option. Paula Vicuña | Investor Relations Manager | model and how it is present in each of the decisions we make [email protected] • Guidelines of the International Integrated Reporting Council (IIRC) Miraflores 9153, Piso 7, Renca, Santiago de Chile Integrated Reporting Framework. Telephone: (56 2) 2338 0520 • The mandatory requirements of General Standard No. 30 of Chile’s Sustainability contact information "Being a multinational company Financial Market Commission have been considered. Consuelo Barrera | [email protected] raises the standard, as well as being Ruta Nacional 19, Km. 3,7, Córdoba, Argentina part of the Coca-Cola System" • Principles set out in AA1000-APS 2008 Accountability Standard of Telephone: (54) 351 496 8304 inclusiveness, relevance and response to stakeholders. • In addition, this Report is a communication on how Coca-Cola Andina GONZALO SAID links its performance with the Sustainable Development Goals (SDGs) of Vice Chairman of the Board of Directors the United Nations Global Compact. #GOPAPERLESS 2019 INTEGRATED ANNUAL REPORT Our 2019 Integrated Annual Report will be available in digital version 8 on our market communication channels: the website and investor relations app, which you can install on your phones through the App Store and Google Play. This is part of our commitment to reduce paper consumption and, as we understand it is in everyone's interest, we want you to join us in this decision. DESIGN PREPARATION PROCESS 102-46 The design of the Coca-Cola contour bottle, elements of Coca-Cola marketing campaigns, logos and every reference to the brands of The For the preparation of our second Integrated Report we formed a team Coca-Cola Company contained in this Report are registered property by The composed of multiple areas, both from our Corporate office and each Coca-Cola Company. All artistic compositions and photographs contained in of the operations. Once the Report was prepared, it was reviewed and this Integrated Report are the property of Embotelladora Andina S.A. approved by the Chief Executive Officer and the Board of Directors. 1 2 3 4 5 6 7 8 ANDINA AT A GLANCE OUR HISTORY SUSTAINABLE VALUE VALUE CREATION WE OPERATE WITH OUR PRINCIPAL METRICS CORPORATE EXHIBITS CREATION STRATEGY INTEGRITY INFORMATION HOME MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS 102-14, 102-16, 102-7, 102-23; 102-102-15 2019 has been another year of consistent operating achievements and LEADERSHIP IN COSTS & MARKET POSITION outstanding financial results given the execution of a solid strategy The continuous cost leadership in our operations, an efficient and and thanks to our collaborators. We faced huge challenges in the integrated supply chain and an extensive distribution network allowed territories where we operate: political, social and economic instability us to serve with excellence more than 267 thousand customers in Chile and political changes and its consequent economic volatility distributed in 2.9 million square kilometers and achieve a strong in Argentina.