Su sta i n a b i R l e i p t o y r t 2 0 14 The 2014 Sustainability Report collects the with Coca-Cola Andina’s 2014 Annual Report. valuable contributions that our collaborators Thus, we are simultaneously putting financial and the Company as a whole make every economic information and that of sustainability day in Argentina, Brazil, Chile and Paraguay. management for the period at the disposal of In it you will find projects and actions that inspire our main stakeholders taking a first step towards others and generate value for our collaborators, integrating both reports for the following periods. customers, consumers, suppliers and the You can access the Sustainability Report communities where we have the privilege using the pen-drive that is included in the to operate. We also share lessons learned 2014 Annual Report; downloading the PDF and work plans in each of the pillars of our of the online publication from our web site sustainability strategy. www.koandina.com; or by scanning the QR This edition, which follows the guidelines of code that is included in the Annual Report and the Global Reporting Initiative in its latest G4 on the Company’s website. version, is presented jointly and complementary 2014 Everything we have been doing makes us view a 2015 full of opportunities, a year sustainability report that we will continue looking for profitable and sustainable ways to keep on growing. Juan Claro González Chairman of the Board Coca-Cola Andina at a Glance 6 Sustainable Management 14 Beverage Benefits 30 Active Healthy Living 46 Water Stewardship 58 Energy Management and Climate Protection 68 CONTENT Sustainable Packaging 80 Work Environment 92 Community 116 Challenges for the coming years 144 Characteristics of the Report and GRI G4 Version Content Index 148 We Value Your Opinion 168 During 2014 we delivered over 4.7 billion liters of soft drinks, juices and bottled waters and employed more than 16,100 COCA-COLA ANDINA AT A GLANCE people in 4 countries. One company one team We distribute beer in Brazil and in the South of the Argentina, and liquors in the South of Chile At Coca-Cola Andina we produce and distribute products licensed by The Coca-Cola Company In Argentina and Chile we produce PET bottles in Argentina, Brazil, Chile and Paraguay in for soft drinks and REF PET packaging in several franchised territories servicing almost 52 million formats for our own operations and for sale to people. We are the 2nd Coca-Cola bottler in other bottlers. South America and are among the 3 largest in Recent years have been marked by important Latin America. organic and inorganic growth. The merger We are the sole Coca-Cola soft drink producer in between Embotelladora Andina and Coca-Cola Paraguay, the largest producer in Chile and the Polar S.A., a bottling plant with 41 years of second largest producer in Brazil and Argentina. history, made in 2012 was relevant. In addition, the acquisition of Companhia de Bebidas Among the beverages licensed by The Coca-Cola Ipiranga by our Brazilian subsidiary, Rio de Company, we produce and distribute sparkling Janeiro Refrescos Ltda. materialized in 2013. beverages, fruit juices, mineral and purified water, flavored water, energy and isotonic beverages. 1 Refillable PET: bottle Polyethylene terephthalate; , since the material possesses adequate density to support collection and sanitation processes, it can be safely reutilized 6 / 7 Integrity We believe in honesty, Austerity transparency and We take care of the coherence as a basis for resources as if they were our behavior, respecting ours, responsibly orienting the Company’s values. costs to the Company’s OUR BELIEFS COCA-COLA ANDINA needs and requirements. 2020 Vision Ethics Code Lead the beverage market, being recognized for our management It contains the set of principles and ethical conduct behavioral guidelines excellence, people and welcoming culture. of all employees, contractors, consultants and members of the Board Mission in terms of their functions, and to all those who provide services to the Company. Add value to grow sustainably, refreshing our consumers and sharing It covers aspects such as legal regulations and regulatory compliance; moments of optimism with our clients. Conflicts of interest; Transparency and accuracy of accounting information; Values Fraud, corruption and money laundering; Dealings with public officials; Integrity customers and suppliers; Political and humanitarian contributions. Austerity It establishes an Ethics Committee to ensure compliance and mechanisms Teamwork for the reception of non-compliance complaints. Result-oriented Attitude 2 You can access the full text of the Ethics Code at www.koandina.com Customer approached Customer approached Result-oriented Attitude We know the needs of our We approach our We are moved by customers and concentrate Teamwork energies on an passion, commitment and our efforts to fully fulfill the We promote trust, efficient work in perseverance, confirming promise of service and cooperation, respect order to achieve the our desire to always do dedication to the market. and diversity in our work proposed goals. our job better at all times. environments, adding the personal contribution to the joint creation. 8 / 9 Presence in countries: nd Argentina,4 Brazil, Chile Coca-Cola bottler 3,153 2 MUS$ and Paraguay 271,000clients in South America in net sales 2.92 million km franchise extension 74 distribution centers We delivered over Over Franchised territories with One of the largest Coca-Cola7 billion liters4.7 of beverages bottling plants 16,100employees 11 bottlers in the world in 2014 52 million inhabitants in 5other plants the 4 countries OUR OPERATIONS Our Embotelladora Rio de Janeiro Embotelladora Paraguay operations del Atlántico S.A. Refrescos Ltda. Andina S.A. Refrescos S.A. Andina Empaques Vital Jugos S.A. Argentina S.A. Vital Aguas S.A. Envases Central S.A. unit cases - total sales 229.4 306.9 231.8 62.5 volume (Million) clients (thousand) 68 88 63 52 workers 3,288 7,560 3,810 1,478 soft drink market share 61.40% 61.40% 68.50% 62.10% franchise extension km2 1,892 165 398 407 (thousand) bottling plants 3 3 4 1 other plants 1 4 0 0 distribution centers 41 13 17 3 franchise inhabitants (million) 13.9 21.9 9.4 6.8 San Juan, Mendoza, San Luis, Córdoba, Santa Part of the states Antofagasta, Atacama, Fé, Entre Ríos, La Pampa, of Río de Janeiro, Coquimbo, Región All of the regional boundaries Neuquén, Rio Negro, Espiritu Santo, Metropolitana, San Paraguayan Chubut, Santa Cruz, Tierra São Paulo and Antonio, Cachapoal, territory del Fuego and the Western Minas Gerais Aysen and Magallanes Province of Buenos Aires. 10 / 11 KEY SUSTAINABILITY PERFORMANCE INDICATORS ECONOMIC PERFORMANCE From the beginning, sustainability has We permanently monitor key sustainability The economic dimension of sustainability table shows the capital flow between our been a part of our business essence. performance indicators in topics that are refers to the way in which an organization stakeholders and the main economic It’s the view with which we conduct, relevant for the companies in the sector, creates value for society. The following impacts of our operation on society. decide and act upon in order to offer for The Coca-Cola Company, for our the best products to our customers shareholders and our major stakeholders. and consumers, creating social value and making a positive difference in the communities we serve. 2014 Key sustainability Component Concept MU$S Argentina Brazil Chile Paraguay performance indicators Economic value created (EVC) Efficiency in water consumption Number of liters of water needed to produce one Net sales plus income from financial 2.03 1.76 2.7 2.19 a) Sales 3,175 liter of beverage investments and sale of assets Efficiency in energy consumption Economic value distributed (EVD) Energy used per liter of produced beverage - 0.34 0.33 0.28 0.59 Payments to suppliers, royalties and Mjoules / liter of produced beverage b) Operating costs 2,370 other operating payments Solid waste generation Grams of solid waste generated per liter of 13.76 11.76 15.42 23.3 Total payments to employees and social produced beverage c) Salaries en employee social benefits contributions. Does not include future 467 payment commitments Recycling of solid waste Percentage of recycled waste in relation to 91% 91% 82.90% 80% All financial payments to the d) Payments to capital suppliers 162 generated waste organization’s capital suppliers Industrial safety e) Government payments Gross rates and taxes 39 Severity in accidents and number of accidents, 215.01 7.3 62.58 4.08 indicator LTISR (lost time Injury Severity Rate) Voluntary contributions and investment Client Satisfaction 1 f ) Investments in the community of funds in the community in the broad 4 sense of the word (including donations) Annual measurement with all of Coca-Cola Andina’s 85% 70.8% 61% 83% operations in scope Economic value withheld (EVW) Product Quality (Calculated as economic value created less Economic Reserves 133 93.50% 96.80% 95.20% 94.60% Beverage Product Quality Index (BPQI) Rate Value) Packaging Quality 90.00% 94.40% 87.60% 81.80% Packaging Quality Index (PCQI) Rate Note: Revenues are net of taxes pertaining to sales activity. Employee turnover 0.41 3.55 1.93 0.62 For more information on our economic performance, you can access the 2014 Annual Report at the following link:: Favorable internal environment www.koandina.com Bi-annual survey (2013 data prior to merger with 63% 60% 59% N/A Coca-Cola Polar territories) 12 / 13 SUSTAINABLE MANAGEMENT Our View on Sustainability Our 2020 Vision inspires sustainability management, formalizing goals, objectives and indicators with expected values in the medium and long term.