Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k)

Name	Symbol	Market	Type
Embotelladora Andina	NYSE:AKO.A	NYSE	Depository Receipt

	Price Change	% Change	Price	High Price	Low Price	Open Price	Traded	Last Trade
	0.00	0.00%	14.3499				0	09:09:31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15b-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

March 2023

Date of Report (Date of Earliest Event Reported)

Embotelladora Andina S.A.

(Exact name of registrant as specified in its charter)

Andina Bottling Company, Inc.

(Translation of Registrant´s name into English)

Avda. Miraflores 9153

Renca

Santiago, Chile

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ¨ No x

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ¨ No x

Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934

Yes ¨ No x

Interim Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Santiago, Chile

March 31, 2023 and December 31, 2022

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Interim Consolidated Financial Statements

at March 31, 2023 (non-audited) and December 31, 2022

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Interim Consolidated Financial Statements

I.	Interim Consolidated Statements of Financial Position at March 31, 2023 (non-audited) and December 31, 2022	1

II.	Interim Consolidated Statements of Income by Function (non-audited)	3

III.	Interim Consolidated Statements of Comprehensive (Loss) Income (non-audited)	4

IV.	Interim Consolidated Statements of Changes in Equity (non-audited)	5

V.	Interim Consolidated Statements of Cash Flows (non-audited)	6

VI.	Notes to the Interim Consolidated Financial Statements	7

1. CORPORATE INFORMATION	7
2 – BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND APPLICATION OF ACCOUNTING CRITERIA	8
3 – FINANCIAL REPORTING BY SEGMENT	25
5 – OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS	28
6 – OTHER CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS	29
7 – TRADE ACCOUNTS AND OTHER ACCOUNTS RECEIVABLE	30
8 – INVENTORIES	32
9 – TAX ASSETS AND LIABILITIES	32
10 – INCOME TAX EXPENSE AND DEFERRED TAXES	33
11 – PROPERTY, PLANT AND EQUIPMENT	35
12 – RELATED PARTIES	38
13 – CURRENT AND NON-CURRENT EMPLOYEE BENEFITS	40
14 – INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD	41
15 – INTANGIBLE ASSETS OTHER THAN GOODWILL	44
16 – GOODWILL	45
17 – OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES	46
18 – TRADE AND OTHER ACCOUNTS PAYABLE	57
19 – OTHER PROVISIONS, CURRENT AND NON-CURRENT	57
20 – OTHER NON-FINANCIAL LIABILITIES	58
21 – EQUITY	58
22 – DERIVATIVE ASSETS AND LIABILITIES	61
23 – LITIGATION AND CONTINGENCIES	64
24 – FINANCIAL RISK MANAGEMENT	68
25 – EXPENSES BY NATURE	72
26 – OTHER INCOME	72
27 – OTHER EXPENSES BY FUNCTION	72
28 – FINANCIAL INCOME AND EXPENSES	73
29 – OTHER (LOSSES) GAINS	73
30 – LOCAL AND FOREIGN CURRENCY	74
31 – ENVIRONMENT (Non-audited)	78
32 – SUBSEQUENT EVENTS	78

Interim Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

March 31, 2023 (non-audited) and December 31, 2022

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Financial Position

as of March 31, 2023 and December 31, 2022

ASSETS	NOTE	03.31.2023		12.31.2022
		ThCh$		ThCh$
Current assets:

Cash and cash equivalents	4		259,267,836		291,681,987
Other financial assets	5		247,479,307		263,044,869
Other non-financial assets	6		24,445,675		26,957,000
Trade and other accounts receivable, net	7		223,476,662		279,770,286
Accounts receivable from related companies	12.1		12,712,063		15,062,167
Inventory	8		243,867,857		245,886,656
Current tax assets	9		16,027,572		39,326,427
Total Current Assets			1,027,276,972		1,161,729,392

Non-Current Assets:
Other financial assets	5		100,429,557		94,852,711
Other non-financial assets	6		57,420,002		59,672,266
Trade and other receivables	7		603,366		539,920
Accounts receivable from related parties	12.1		109,318		109,318
Investments accounted for under the equity method	14		91,687,930		92,344,598
Intangible assets other than goodwill	15		652,197,021		671,778,888
Goodwill	16		122,442,598		129,023,922
Property, plant and equipment	11		780,620,126		798,221,259
Deferred tax assets	10.2		2,121,935		2,428,333
Total Non-Current Assets			1,807,631,853		1,848,971,215

Total Assets			2,834,908,825		3,010,700,607

The accompanying notes 1 to 32 form an integral part of these Interim Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Financial Position

as of March 31, 2023 and December 31, 2022

LIABILITIES AND EQUITY	NOTE	03.31.2023			12.31.2022
		ThCh$			ThCh$
LIABILITIES
Current Liabilities
Other financial liabilities	17		331,884,530			367,302,080
Trade and other accounts payable	18		308,312,461			384,801,630
Accounts payable to related parties	12.2		86,499,143			90,248,067
Other provisions	19		1,333,147			1,591,644
Tax liabilities	9		25,881,734			14,615,447
Employee benefits current provisions	13		28,881,497			48,391,806
Other non-financial liabilities	20		13,439,296			42,294,460
Total Current Liabilities			796,231,808			949,245,134

Other financial liabilities	17		837,258,095			904,802,058
Trade accounts and other accounts payable	18		2,534,462			3,015,284
Accounts payable to related companies	12.2		9,820,905			10,354,296
Other provisions	19		45,203,705			47,103,783
Deferred tax liabilities	10.2		166,709,395			165,778,556
Employee benefits non-current provisions	13		16,409,033			17,409,793
Other non-financial liabilities	20		26,573,226			29,589,051
Total Non-current liabilities			1,104,508,821			1,178,052,821

EQUITY	21
Issued capital			270,737,574			270,737,574
Retained earnings			796,565,634			716,975,127
Other reserves			(162,746,386	)		(132,452,557	)
Equity attributable to owners of the parent			904,556,822			855,260,144
Non-controlling interests			29,611,374			28,142,508
Total Equity			934,168,196			883,402,652
Total Liabilities and Equity			2,834,908,825			3,010,700,607

The accompanying notes 1 to 32 form an integral part of these Interim Consolidated Financial Statements.

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Income by Function

For the periods ended March 31, 2023 and 2022

		01.01.2023			01.01.2022
	NOTE	03.31.2023			03.31.2022
		ThCh$			ThCh$
Net sales			701,855,634			624,227,678
Cost of sales	8 - 25		(425,264,069	)		(378,019,256	)
Gross Profit			276,591,565			246,208,422
Other income	26		190,276			174,492
Distribution expenses	25		(66,289,316	)		(57,763,526	)
Administrative expenses	25		(111,965,896	)		(93,026,545	)
Other expenses	27		(4,571,061	)		(4,002,681	)
Other (loss) gains	29		(18	)		-
Financial income	28		11,628,985			11,305,460
Financial expenses	28		(13,916,563	)		(13,614,476	)
Share of profit of investments in associates and joint ventures accounted for using the equity method	14.3		1,070,261			(512,998	)
Foreign exchange differences			(4,502,971	)		(2,233,683	)
Income by indexation units			(7,132,239	)		(11,894,713	)
Net income before income taxes			81,103,023			74,639,752
Income tax expense	10.1		(36,005,560	)		(40,426,355	)
Net income			45,097,463			34,213,397

Net income attributable to
Owners of the parent			43,338,721			32,997,634
Non-controlling interests			1,758,742			1,215,763
Net income			45,097,463			34,213,397

			Ch$			Ch$
Earnings per Share, basic and diluted in ongoing operations
Earnings per Series A Share	21.5		43.60			33.20
Earnings per Series B Share	21.5		47.97			36.52

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Comprehensive (Loss) Income

For the periods ended March 31, 2023 and 2022

	01.01.2023			01.01.2022
	03.31.2023			03.31.2022
	ThCh$			ThCh$
Net Income		45,097,463			34,213,397
Other Comprehensive (Loss) Income:
Components of other comprehensive income that will not be reclassified to net income for the period, before taxes
Actuarial Gains (losses) from defined benefit plans		1,271,588			157,607
Components of other comprehensive income that will be reclassified to net income for the period, before taxes
Gain (losses) from exchange rate translation differences		(125,750,223	)		(23,236,377	)
Gain (losses) from cash flow hedges		75,198,217			(43,114,913	)
Income tax related to components of other comprehensive income that will not be reclassified to net income for the period
Income tax benefit related to defined benefit plans		(343,329	)		(42,554	)

Income tax related to components of other comprehensive income that will be reclassified to net income for the period
Income tax related to exchange rate translation differences		39,213,584			2,647,354
Income tax related to cash flow hedges		(20,173,542	)		12,571,353
Other comprehensive (loss) income, total		(30,583,705	)		(51,017,530	)
Total comprehensive (loss) income		14,513,758			(16,804,133	)

Total comprehensive (loss) income attributable to:
Owners of the parent		13,044,892			(17,555,477	)
Non-controlling interests		1,468,866			751,344
Total comprehensive (loss) income		14,513,758			(16,804,133	)

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements.

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the periods ended March 31, 203 and 2022 (non-audited)

		Other reserves
	Issued Capital	Reserves for exchange rate differences		Cash flow hedge reserve		Actuarial gains or losses in employee benefits		Other reserves	Total other reserves		Retained earnings	Equity attributable to owners of the parent		Non-controlling interests		Total equity
	ThCh$	ThCh$		ThCh$		ThCh$		ThCh$	ThCh$		ThCh$	ThCh$		ThCh$		ThCh$
Opening balance as of 01.01.2023	270,737,574	(495,483,366	)	(62,344,501	)	(7,776,316	)	433,151,626	(132,452,557	)	716,975,127	855,260,144		28,142,508		883,402,652
Changes in equity
Comprehensive income
Net income	-	-		-		-		-	-		43,338,721	43,338,721		1,758,742		45.097.463
Other comprehensive (loss) income	-	(86,171,266	)	54,925,022		952,415		-	(30,293,829	)	-	(30,293,829	)	(289,876	)	(30.583.705	)
Total comprehensive (loss) income	-	(86,171,266	)	54,925,022		952,415		-	(30,293,829	)	43,338,721	13,044,892		1,468,866		14.513.758
Dividends	-	-		-		-		-	-		-	-		-		-
Increase (decrease) from other changes *	-	-		-		-		-	-		36,251,786	36,251,786		-		36,251,786
Total changes in equity	-	(86,171,266	)	54,925,022		952,415		-	(30,293,829	)	79,590,507	49,296,678		1,468,866		50,765,544
Ending balance as of 03.31.2023	270,737,574	(581,654,632	)	(7,419,479	)	(6,823,901	)	433,151,626	(162,746,386	)	796,565,634	904,556,822		29,611,374		934,168,196

		Other reserves
	Issued Capital	Reserves for exchange rate differences		Cash flow hedge reserve		Actuarial gains or losses in employee benefits		Other reserves	Total other reserves		Retained earnings	Equity attributable to owners of the parent		Non-controlling interests		Total equity
	ThCh$	ThCh$		ThCh$		ThCh$		ThCh$	ThCh$		ThCh$	ThCh$		ThCh$		ThCh$
Opening balance as of 01.01.2022	270,737,574	(441,580,088	)	50,603,698		(4,885,926	)	433,151,626	37,289,310		768,116,920	1,076,143,804		25,269,755		1,101,413,559
Changes in equity
Comprehensive income
Net income	-	-		-		-		-	-		32,997,634	32,997,634		1,215,763		34.213.397
Other comprehensive (loss) income	-	(20,120,036	)	(30,543,417	)	110,342		-	(50,553,111	)	-	(50,553,111	)	(464,419	)	(51.017.530	)
Total comprehensive (loss) income	-	(20,120,036	)	(30,543,417	)	110,342		-	(50,553,111	)	32,997,634	(17,555,477	)	751,344		(16.804.133	)
Dividends	-	-		-		-		-	-		-	-		-		-
Increase (decrease) from other changes *	-	-		-		-		-	-		24,111,393	24,111,393		-		24,111,393
Total changes in equity	-	(20,120,036	)	(30,543,417	)	110,342		-	(50,553,111	)	57,109,027	6,555,916		751,344		7,307,260
Ending balance as of 03.31.2022	270,737,574	(461,700,124	)	20,060,281		(4,775,584	)	433,151,626	(13,263,801	)	825,225,947	1,082,699,720		26,021,099		1,108,720,819

*Corresponds mainly to inflation effects on the equity of our Subsidiaries in Argentina (see Note 2.5.1)

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements.

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the periods ended March 31, 2023 and 2022

		01.01.2023			01.01.2022
Cash flows provided by (used in) Operating Activities	NOTE	03.31.2023			03.31.2022
		ThCh$			ThCh$
Cash flows provided by Operating Activities
Receipts from the sale of goods and the rendering of services (including taxes)			1,027,696,553			916,114,276
Payments for Operating Activities
Payments to suppliers for goods and services (including taxes)			(732,193,645	)		(641,046,097	)
Payments to and on behalf of employees			(77,985,090	)		(65,682,453	)
Other payments for operating activities (value-added taxes on purchases, sales and others)			(117,862,065	)		(89,784,952	)
Dividends received			-			-
Interest payments			(20,718,263	)		(21,671,316	)
Interest received			4,963,359			3,060,313
Income tax payments			(12,579,928	)		(13,527,145	)
Other cash movements (tax on bank debits Argentina and others)			(1,699,187	)		4,053,438
Cash flows provided by (used in) Operating Activities			69,621,734			91,516,064

Cash flows provided by (used in) Investing Activities
Proceeds from sale of Property, plant and equipment			-			52,196
Purchase of Property, plant and equipment			(50,996,010	)		(35,921,307	)
Purchase of intangible assets						-
Payments from futures, forwards, options and swaps agreements						-
Collection on forward, term, option and financial exchange agreements			35,197			(1,402,194	)
Purchases of other current financial assets			(571,211	)		68,549,666
Net cash flows used in Investing Activities			(51,532,024	)		31,278,361

Cash Flows generated from (used in) Financing Activities
Collection for changes in ownership interest in subsidiaries			-			-
Proceeds (payments) from short term loans			-			94,860
Loan payments			(26,222	)		(40,871	)
Lease liability payments			(1,602,069	)		(1,301,501	)
Dividend payments by the reporting entity			(28,823,063	)		(28,823,063	)
Other cash inflows (outflows) (placement and payment of public debt)			(3,056,461	)		(4,733,979	)
Net cash flows (used in) generated by Financing Activities			(33,507,815	)		(34,804,554	)
Net increase in cash and cash equivalents before exchange differences			(15,418,105	)		87,989,871
Effects of exchange differences on cash and cash equivalents			(11,496,641	)		1,377,289
Effects of inflation in cash and cash equivalents in Argentina			(5,499,405	)		(3,941,344	)
Net increase (decrease) in cash and cash equivalents			(32,414,151	)		85,425,816
Cash and cash equivalents – beginning of period	4		291,681,987			304,312,020
Cash and cash equivalents - end of period	4		259,267,836			389,737,836

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements

1. CORPORATE INFORMATION

Embotelladora Andina S.A. RUT (Chilean Taxpayer Id. N°) 91.144.000-8 (hereinafter “Andina,” and together with its subsidiaries, the “Company”) is an open stock corporation, whose corporate address and principal offices are located at Miraflores 9153, borough of Renca, Santiago, Chile. The Company is regulated by Chile’s Financial Market Commission (hereinafter “CMF”) and pursuant to Chile’s Law 18,046 is subject to the supervision of this entity. It is also registered with the U.S. Securities and Exchange Commission (hereinafter “SEC”) and its stock is traded on the New York Stock Exchange since 1994.

The principal activity of Embotelladora Andina S.A. is to produce, bottle, commercialize and distribute the products under registered trademarks of The Coca-Cola Company (TCCC), as well as commercialize and distribute some brands of other companies such as Monster, AB InBev, Diageo and Capel, among others. The Company maintains operations and is licensed to produce, commercialize and distribute such products in certain territories in Chile, Brazil, Argentina and Paraguay

In Chile, the territories in which it has such a franchise are the Metropolitan Region; the province of San Antonio, the V Region; the province of Cachapoal including the commune of San Vicente de Tagua-Tagua, the VI Region; the II Region of Antofagasta; the III Region of Atacama, the IV Region of Coquimbo XI Region de Aysén del General Carlos Ibáñez del Campo; XII Region of Magallanes and Chilean Antarctic. In Brazil, the aforementioned franchise covers much of the state of Rio de Janeiro, the entire state of Espirito Santo, and part of the states of Sao Paulo and Minas Gerais. In Argentina it includes the provinces of Córdoba, Mendoza, San Juan, San Luis, Entre Ríos, as well as part of the provinces of Santa Fe and Buenos Aires, Chubut, Santa Cruz, Neuquén, Río Negro, La Pampa, Tierra del Fuego, Antarctica and South Atlantic Islands. Finally, in Paraguay the territory comprises the whole country. The bottling agreement for the territories in Argentina expires in September 2027; for the territories in Brazil, it expires in October 2027; and for the territories in Chile and Paraguay, it is under the normal process of renewal. Said agreements are renewable upon the request of Embotelladora Andina S.A. and at the sole discretion of The Coca-Cola Company.

As of the date of these consolidated financial statements, regarding Andina’s principal shareholders, the Controlling Group holds 55.4% of the outstanding shares with voting rights, corresponding to the Series A shares. The Controlling Group is composed of the Chadwick Claro, Garcés Silva, Said Handal and Said Somavía families, who control the Company in equal parts.

These Consolidated Financial Statements reflect the consolidated financial position of Embotelladora Andina S.A. and its Subsidiaries, which were approved by the Board of Directors on April 25, 2023.

2 – BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND APPLICATION OF ACCOUNTING CRITERIA

2.1 Accounting principles and basis of preparation

The Company’s Interim Consolidated Financial Statements for the period ended March 31, 2023 and fiscal year ended December 31, 2022, have been prepared in accordance with International Accounting Standard No. 34 (IAS 34) incorporated in the International Financial Reporting Standards (hereinafter "IFRS") issued by the International Accounting Standards Board (hereinafter "IASB").

These Interim Consolidated Financial Statements have been prepared following the going concern principle by applying the historical cost method, with the exception, according to IFRS, of those assets and liabilities that are recorded at fair value.

These Interim Consolidated Statements reflect the consolidated financial position of Embotelladora Andina S.A. and its Subsidiaries as of March 31, 2023 and December 31, 2022 and the results of operations for the periods from January 1 to March 31, 2023 and 2022, together with the statements of changes in equity and cash flows for the same periods.

These Consolidated Financial Statements have been prepared based on the accounting records maintained by the Parent Company and by the other entities that are part of the Company and are presented in thousands of Chilean pesos (unless expressly stated) as this is the functional and presentation currency of the Company. Foreign operations are included in accordance with the accounting policies established in Notes 2.5.

2.2 Subsidiaries and consolidation

Subsidiary entities are those companies directly or indirectly controlled by Embotelladora Andina. Control is obtained when the Company has power over the investee, when it has exposure or is entitled to variable returns from its involvement in the investee and when it has the ability to use its power to influence the amount of investor returns. They include assets and liabilities, results of operations, and cash flows for the periods reported. Income or losses from subsidiaries acquired or sold are included in the consolidated statements of income by function from the effective date of acquisition through the effective date of disposal, as applicable.

The acquisition method is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of the subsidiary is the fair value of assets transferred, equity securities issued, liabilities incurred or assumed on the date that control is obtained. Identifiable assets acquired, and identifiable liabilities and contingencies assumed in a business combination are accounted for initially at their fair values at the acquisition date. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the income statement.

Intercompany transactions, balances and unrealized gains on transactions between Group entities are eliminated. Unrealized losses are also eliminated. When necessary, the accounting policies of the subsidiaries are modified to ensure uniformity with the policies adopted by the Group.

The interest of non-controlling shareholders is presented in the consolidated statement of changes in equity and the consolidated statement of income by function under "Non-Controlling Interest" and “Earnings attributable to non-controlling interests", respectively.

The interim consolidated financial statements include all assets, liabilities, income, expenses, and cash flows of the Company and its subsidiaries after eliminating balances and transaction among the Group’s entities, the subsidiary companies included in the consolidation are the following:

		Ownership interest
		03.31.2023			12.31.2022
Taxpayer ID	Company Name	Direct	Indirect	Total	Direct	Indirect	Total
96.842.970-1	Andina Bottling Investments S.A.	99.9	0.09	99.99	99.9	0.09	99.99
96.972.760-9	Andina Bottling Investments Dos S.A.	99.9	0.09	99.99	99.9	0.09	99.99
Foreign	Andina Empaques Argentina S.A.	-	99.98	99.98	-	99.98	99.98
96.836.750-1	Andina Inversiones Societarias S.A.	99.98	0.01	99.99	99.98	0.01	99.99
76.070.406-7	Embotelladora Andina Chile S.A.	99.99	-	99.99	99.99	-	99.99
Foreign	Embotelladora del Atlántico S.A.	0.92	99.07	99.99	0.92	99.07	99.99
96.705.990-0	Envases Central S.A.	59.27	-	59.27	59.27	-	59.27
Foreign	Paraguay Refrescos S.A.	0.08	97.75	97.83	0.08	97.75	97.83
76.276.604-3	Red de Transportes Comerciales Ltda.	99.9	0.09	99.99	99.9	0.09	99.99
77.427.659-9	Re-Ciclar S.A.	60.00	-	60.00	60.00	-	60.00
Foreign	Rio de Janeiro Refrescos Ltda.	-	99.99	99.99	-	99.99	99.99
78.536.950-5	Servicios Multivending Ltda.	99.9	0.09	99.99	99.9	0.09	99.99
78.861.790-9	Transportes Andina Refrescos Ltda.	99.9	0.09	99.99	99.9	0.09	99.99
96.928.520-7	Transportes Polar S.A.	99.99	-	99.99	99.99	-	99.99
76.389.720-6	Vital Aguas S.A.	66.50	-	66.50	66.50	-	66.50
93.899.000-k	VJ S.A.	15.00	50.00	65.00	15.00	50.00	65.00

2.3 Investments in associates

Ownership interest held by the Group in associates are recorded following the equity method. According to the equity method, the investment in an associate is initially recorded at cost. As of the date of acquisition, the investment in the statement of financial position is recorded by the proportion of its total assets, which represents the Group's participation in its capital, once adjusted, where appropriate, the effect of the transactions made with the Group, plus capital gains that have been generated in the acquisition of the company.

Dividends received from these companies are recorded by reducing the value of the investment and the results obtained by them, which correspond to the Group according to its ownership, are recorded under the item “Participation in profit (loss) of associates accounted for by the equity method.”

Associates are all entities over which the Group exercises significant influence but does not have control. Significant influence is the power to intervene in the financial and operating policy decisions of the associate, without having control or joint control over it. The results of these associates are accounted for using the equity method. Accounting policies of the associates are changed, where necessary, to ensure conformity with the policies adopted by the Company and unrealized gains are eliminated.

For associates located in Brazil, the financial statements accounted for using the equity method have a one-month lag because their reporting dates are different from those of Embotelladora Andina.

2.4 Financial reporting by operating segment

“IFRS 8 Operating Segments” requires that entities disclose information on the results of operating segments. In general, this is information that Management and the Board of Directors use internally to assess performance of segments and allocate resources to them. Therefore, the following operating segments have been determined based on geographic location:

Operation in Chile

Operation in Brazil

Operation in Argentina

Operation in Paraguay

2.5 Functional currency and presentation currency

2.5.1 Functional currency

Items included in the financial statements of each of the entities in the Company are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The functional currency of each of the Operations is the following:

Company	Functional Currency
Embotelladora del Atlántico	Argentine Peso (ARS)
Embotelladora Andina	Chilean Peso (CLP)
Paraguay Refrescos	Paraguayan Guaraní (PYG)
Rio de Janeiro Refrescos	Brazil Real (BRL)

Foreign currency-denominated monetary assets and liabilities are converted to the functional currency at the observed exchange rate of each central bank, in effect on the closing date.

All differences arising from the liquidation or conversion of monetary items are recorded in the income statement, with the exception of the monetary items designated as part of the hedging of the Group's net investment in a business abroad. These differences are recorded under other comprehensive income until the disposal of the net investment, at which point they are reclassified to the income statement. Tax adjustments attributable to exchange differences in these monetary items are also recognized under other comprehensive income.

Non-monetary items that are valued at historical cost in a foreign currency are converted using the exchange rate in effect at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are converted using the exchange rate in effect at the date on which fair value is determined. Losses or gains arising from the conversion of non-monetary items measured at fair value are recorded in accordance with the recognition of losses or gains arising from the change in the fair value of the respective item (e.g., exchange differences arising from items whose fair value gains or losses are recognized in another overall result or in results are also recognized under comprehensive income).

Functional currency in hyperinflationary economies

Beginning July 2018, Argentina's economy is considered as hyperinflationary, according to the criteria established in the International Accounting Standard No. 29 “Financial information in hyperinflationary economies” (IAS 29). This determination was carried out based on a series of qualitative and quantitative criteria, including an accumulated inflation rate of more than 100% for three years. In accordance with IAS 29, the financial statements of companies in which Embotelladora Andina S.A. participates in Argentina have been retrospectively restated by applying a general price index to the historical cost, in order to reflect the changes in the purchasing power of the Argentine peso, as of the closing date of these financial statements.

Non-monetary assets and liabilities were restated since February 2003, the last date an inflation adjustment was applied for accounting purposes in Argentina. In this context, it should be mentioned that the Group made its transition to IFRS on January 1, 2004, applying the attributed cost exemption for Property, plant and equipment.

For consolidation purposes in Embotelladora Andina S.A. and as a result of the adoption of IAS 29, the results and financial position of our Argentine subsidiaries were converted to the closing exchange rate (ARS/CLP) at the date of presentation of these financial statements , in accordance with IAS 21 "Effects of foreign currency exchange rate variations", when dealing with a hyperinflationary economy.

The comparative amounts in the consolidated financial statements are those that were presented as current year amounts in the relevant financial statements of the previous year (i.e., not adjusted for subsequent changes in price level or exchange rates). This results in differences between the closing net equity of the previous year and the opening net equity of the current year and, as an accounting policy option, these changes are presented as follows: (a) the re-measurement of Opening balances under IAS 29 as an adjustment to equity and (b) subsequent effects, including re-expression under IAS 21 , as "Exchange rate differences in the conversion of foreign operations" under other comprehensive income.

Inflation for the periods from January to March 2023 and from January to December 2022 was 20.10% and 96.95%, respectively.

2.5.2 Presentation currency

The presentation currency is the Chilean peso, which is the functional currency of the parent company, for such purposes, the financial statements of subsidiaries are translated from the functional currency to the presentation currency as indicated below:

Translation of financial statements whose functional currency does not correspond to hyperinflationary economies (Brazil and Paraguay)

Financial statements measured as indicated are translated to the presentation currency as follows:

The statement of financial position is translated to the closing exchange rate at the financial statement date and the income statement is translated at the average monthly exchange rates, the differences that result are recognized in equity under other comprehensive income.

Cash flow income statement are also translated at average exchange rates for each transaction.

In the case of the disposal of an investment abroad, the component of other comprehensive income (OCI) relating to that investment is reclassified to the income statement.

Translation of financial statements whose functional currency corresponds to hyperinflationary economies (Argentina)

Financial statements of economies with a hyperinflationary economic environment, are recognized according to IAS 29 Financial Information in Hyperinflationary Economies, and subsequently converted to Chilean pesos as follows:

The statement of financial position sheet is translated at the closing exchange rate at the financial statements date.

The income statement is translated at the closing exchange rate at the financial statements date.

The statement of cash flows is converted to the closing exchange rate at the date of the financial statements.

For the disposal of an investment abroad, the component of other comprehensive income (OCI) relating to that investment is reclassified to the income statement.

2.5.3 Exchange rates

Exchange rates regarding the Chilean peso in effect at the end of each period are as follows:

Date	USD	BRL	ARS	PYG
03.31.2023	790.41	155.58	3.78	0.109
12.31.2022	855.86	164.03	4.83	0.116
03.31.2022	787.98	166.32	7.10	0.113

2.6 Property, plant, and equipment

The elements of Property, plant and equipment, are valued for their acquisition cost, net of their corresponding accumulated depreciation, and of the impairment losses they have experienced.

The cost of the items of Property, plant and equipment include in addition to the price paid for the acquisition: i) the financial expenses accrued during the construction period that are directly attributable to the acquisition, construction or production of qualified assets, which are those that require a substantial period of time before being ready for use, such as production facilities. The Group defines a substantial period as one that exceeds twelve months. The interest rate used is that corresponding to specific financing or, if it does not exist, the weighted average financing rate of the Company making the investment; and ii) personnel expenses directly related to the construction in progress.

Construction in progress is transferred to operating assets after the end of the trial period when they are available for use, from which moment depreciation begins.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset only when it is probable that future economic benefits associated with the items of Property, plant and equipment will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance are charged to expense in the reporting period in which they are incurred.

Land is not depreciated since it has an indefinite useful life. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives.

The estimated useful lives by asset category are:

Assets		Range in years
Buildings		15-80
Plant and equipment		5-20
Warehouse installations and accessories		10-50
Furniture and supplies		4-5
Motor vehicles		4-10
IT equipment		3-5
Other Property, plant and equipment		3-10
Bottles and containers		1-8

The residual value and useful lives of Property, plant and equipment are reviewed and adjusted at the end of each fiscal year, if appropriate.

The Company assesses on each reporting date if there is evidence that an asset may be impaired. The Group estimates the recoverable amount of the asset, if there is evidence, or when an annual impairment test is required for an asset.

Gains and losses on disposals of property, plant, and equipment are calculated by comparing the proceeds to the carrying amount and are charged to other expenses by function or other gains, as appropriate in the statement of comprehensive income.

2.7 Intangible assets and Goodwill

2.7.1 Goodwill

Goodwill represents the excess of the consideration transferred over the Company’s interest in the net fair value of the net identifiable assets of the subsidiary and the fair value of the non-controlling interest in the subsidiary on the acquisition date. Since goodwill is an intangible asset with indefinite useful life, it is recognized separately and tested annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognized immediately as an expense and is not subsequently reversed.

Goodwill is carried at cost less accumulated impairment losses.

Gains and losses on the sale of an entity include the carrying amount of goodwill related to that entity.

Goodwill is assigned to each cash generating unit (CGU) or group of cash-generating units, from where it is expected to benefit from the synergies arising from the business combination. Such CGUs or groups of CGUs represent the lowest level in the organization at which goodwill is monitored for internal management purposes.

2.7.2 Distribution rights

Distribution rights are contractual rights to produce and/or distribute Coca-Cola brand products and other brands in certain territories in Argentina, Brazil, Chile and Paraguay. Distribution rights are born from the process of valuation at fair value of the assets and liabilities of companies acquired in business combinations. Distribution rights have an indefinite useful life and are not amortized, (as they are historically permanently renewed by The Coca-Cola Company) and therefore are subject to impairment tests on an annual basis.

2.7.3 Software

Carrying amounts correspond to internal and external software development costs, which are capitalized once the recognition criteria in IAS 38, Intangible Assets, have been met. Their accounting recognition is initially realized for their acquisition or production cost and, subsequently, they are valued at their net cost of their corresponding accumulated amortization and of the impairment losses that, if applicable, they have experienced. The aforementioned software is amortized within four years.

2.8 Impairment of non-financial assets

Assets that have an indefinite useful life, such as intangibles related to distribution rights and goodwill, are not amortized and are tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment. Assets that are subject to amortization are tested for impairment whenever there is an event or change in circumstances indicating that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying value of the asset exceeds its recoverable amount. The recoverable amount is the greater of an asset’s fair value less costs to sell or its value in use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units - CGU). Cash-generating unit's recoverable amount has been determined on the basis of its value in use.

Regardless of what was stated in the previous paragraph, in the case of CGUs to which goodwill or intangible assets with an indefinite useful life have been assigned, the analysis of their recoverability is carried out systematically at the end of each fiscal year. These indications may include new legal provisions, change in the economic environment that affects business performance indicators, competition movements, or the disposal of an important part of a CGU.

Management reviews business performance based on geographic segments. Goodwill is monitored at the operating segment level that includes the different cash generating units in operations in Chile, Brazil, Argentina and Paraguay. The impairment of distribution rights is monitored geographically in the CGU or group of cash generating units, which correspond to specific territories for which Coca-Cola distribution rights have been acquired. These cash generating units or groups of cash generating units are composed of the following segments:

Operation in Chile;

Operation in Argentina;

Operation in Brazil (State of Rio de Janeiro and Espirito Santo, Ipiranga territories, investment in the Sorocaba associate and investment in the Leão Alimentos S.A. associate);

Operation in Paraguay

To check if goodwill has suffered a loss due to impairment of value, the Company compares the book value thereof with its recoverable value, and recognizes an impairment loss, for the excess of the asset's carrying amount over its recoverable amount. To determine the recoverable values of the CGU, management considers the discounted cash flow method as the most appropriate.

The main assumptions used in the annual impairment test are:

Discount rate

The discount rate applied in the annual impairment test carried out in 2022 was estimated using the CAPM (Capital Asset Pricing Model) methodology, which allows estimating a discount rate according to the level of risk of the CGU in the country where it operates. A nominal discount rate in local currency before tax is used according to the following table:

	2022 Discount rates
Argentina		33.1	%
Chile		9.3	%
Brazil		10.5	%
Paraguay		11.3	%

Other assumptions

The financial projections to determine the net present value of future cash flows of the CGUs are modeled based on the main historical variables and the respective budgets approved by management. In this regard, a conservative growth rate is used, taking into account the differences that exist in categories with high growth such as carbonated beverages, categories with medium growth such as waters and juices, and less developed categories such as alcohols. Additionally, the valuation model considers projections over 5 years based on perpetuity growth rates by operation, which range from 0.3% to 0.9% depending on the degree of maturity of the consumption of the products in each operation. In this sense, the variables with greatest sensitivity in these projections are the discount rates applied in the determination of the net present value of projected cash flows, growth perpetuities and EBITDA margins considered in each CGU.

In order to sensitize the impairment test, variations were made to the main variables used in the model. Ranges used for each of the modified variables are:

Discount Rate: Increase / Decrease of up to 200 bps as a value in the rate at which future cash flows are discounted to bring them to present value

Perpetuity: Increase / Decrease of up to 26 bps in the rate to calculate the perpetual growth of future cash flows

EBITDA margin: Increase / Decrease of 200 bps of EBITDA margin of operations, which is applied per year for the projected periods, that is, for the years 2023-2027

After modeling and valuing the different CGUs in the annual impairment process that the Company performs, as a result of the tests performed as of December 31, 2022, no impairment were identified in any of the CGUs listed above, assuming conservative EBITDA margin projections and in line with market history.

In the 2021 annual review of other investments, it was identified that for the Verde Campo brand (producer of which is owned by Trop Frutas do Brasil Ltda.), the recoverable amount would be R$ 21.8 million, amount below the book value recorded in the financial statements of R$ 34.6 million in which Andina Brasil includes its participation proportionally. Given the difference, the losses of R$ 12.8 million were written down from their book value as of December 31, 2021, leaving a recoverable amount of R$ 21.8 million. The effects of impairment were included in the consolidated results under " Share of profit of investments in associates and joint ventures accounted for using the equity method”. The main reasons for the impairment are due to the lower cash flows expected for the dairy products segment for the local Brazilian market.

Thus, despite the deterioration in macroeconomic conditions experienced by the economic conditions of the countries in which operations are carried out, the impairment test yielded recovery values higher than the book values of assets, including those for the sensitivity calculations in the stress test conducted on the model for the 3 previously mentioned variables.

During the 2023 period, no impairment indicators have been identified.

2.9 Financial instruments

A financial instrument is any contract that results in the recognition of a financial asset in one entity and a financial liability or equity instrument in another entity.

2.9.1 Financial assets

Pursuant to IFRS 9 “Financial Instruments”, except for certain trade accounts receivable, the Group initially measures a financial asset at its fair value plus transaction costs, in the case of a financial asset that is not at fair value, reflecting changes in P&L.

The classification is based on two criteria: (a) the Group's business model for the purpose of managing financial assets to obtain contractual cash flows; and (b) if the contractual cash flows of financial instruments represent "solely payments of principal and interest” on the outstanding principal amount (the “SPPI criterion”). According to IFRS 9, financial assets are subsequently measured at (i) fair value with changes in P&L (FVPL), (ii) amortized cost or (iii) fair value through other comprehensive income (FVOCI).

The subsequent classification and measurement of the Group's financial assets are as follows:

Financial asset at amortized cost for financial instruments that are maintained within a business model with the objective of maintaining the financial assets to collect contractual cash flows that meet the SPPI criterion. This category includes the Group’s trade and other accounts receivable.

Financial assets measured at fair value with changes in other comprehensive income (FVOCI), with gains or losses recognized in P&L at the time of liquidation. Financial assets in this category correspond to the Group's instruments that meet the SPPI criterion and are kept within a business model both to collect cash flows and to sell.

Other financial assets are classified and subsequently measures as follows:

Equity instruments at fair value with changes in other comprehensive income (FVOCI) without recognizing earnings or losses in P&L at the time of liquidation. This category only includes equity instruments that the Group intends to keep in the foreseeable future and that the Group has irrevocably chosen to classify in this category in the initial recognition or transition.

Financial assets at fair value with changes in P&L (FVPL) include derivative instruments and equity instruments quoted that the Group had not irrevocably chosen to classify at FVOCI in the initial recognition or transition. This category also includes debt instruments whose cash flow characteristics do not comply with the SPPI criterion or are not kept within a business model whose objective is to recognize contractual cash flows or sale.

A financial asset (or, where applicable, a portion of a financial asset or a portion of a group of similar financial assets) is initially disposed (for example, canceled in the Group's consolidated financial statements) when:

The rights to receive cash flows from the asset have expired,

The Group has transferred the rights to receive the cash flows of the asset or has assumed the obligation to pay all cash flows received without delay to a third party under a transfer agreement; and the Group (a) has substantially transferred all risks and benefits of the asset, or (b) has not substantially transferred or retained all risks and benefits of the asset but has transferred control of the asset.

2.9.2 Financial Liabilities

Financial liabilities are classified as a fair value financial liability at the date of their initial recognition, as appropriate, with changes in results, loans and credits, accounts payable or derivatives designated as hedging instruments in an effective coverage.

All financial liabilities are initially recognized at fair value and transaction costs directly attributable are netted from loans and credits and accounts payable.

The Group's financial liabilities include trade and other accounts payable, loans and credits, including those discovered in current accounts, and derivative financial instruments.

The classification and subsequent measurement of the Group's financial liabilities are as follows:

Fair value financial liabilities with changes in results include financial liabilities held for trading and financial liabilities designated in their initial recognition at fair value with changes in results. The losses or gains of liabilities held for trading are recognized in the income statement.

Loans and credits are valued at cost or amortized using the effective interest rate method. Gains and losses are recognized in the income statement when liabilities are disposed, as well as interest accrued in accordance with the effective interest rate method.

A financial liability is disposed of when the obligation is extinguished, cancelled or expires. Where an existing financial liability is replaced by another of the same lender under substantially different conditions, or where the conditions of an existing liability are substantially modified, such exchange or modification is treated as a disposal of the original liability and the recognition of the new obligation. The difference in the values in the respective books is recognized in the statement of income.

2.9.3  Offsetting financial instruments

Financial assets and financial liabilities are offset with the corresponding net amount presenting the corresponding net amount in the statement of financial position, if:

There is currently a legally enforceable right to offset the amounts recognized, and

It is intended to liquidate them for the net amount or to realize the assets and liquidate the liabilities simultaneously.

2.10 Derivatives financial instruments and hedging activities

The Company and its subsidiaries use derivative financial instruments to mitigate risks relating to changes in foreign currency and exchange rates associated with raw materials, and loan obligations. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at each closing date. Derivatives are accounted as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

2.10.1  Derivative financial instruments designated as cash flow hedges

At the inception of the transaction, the group documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated income statement within "other gains (losses)”.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when foreign currency denominated financial liabilities are translated into their functional currencies). The gain or loss relating to the effective portion of cross currency swaps hedging the effects of changes in foreign exchange rates are recognized in the consolidated income statement within "foreign exchange differences.” When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the consolidated income statement.

2.10.2 Derivative financial instruments not designated for hedging

The fair value of derivative financial instruments that do not qualify for hedge accounting pursuant to IFRS are immediately recognized in the income statement under "Other income and losses". The fair value of these derivatives is recorded under "other current financial assets" or "other current financial liabilities" in the statement of financial position.”

The Company does not use hedge accounting for its foreign investments.

The Company also evaluates the existence of embedded derivatives in contracts and financial instruments as stipulated by IFRS 9 and classifies them pursuant to their contractual terms and the business model of the group. As of December 31, 2022 and 2021, the Company had no embedded derivatives.

2.10.3 Fair value hierarchy

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the date of the transaction. Fair value is based on the presumption that the transaction to sell the asset or to transfer the liability takes place;

In the asset or liability main market, or

In the absence of a main market, in the most advantageous market for the transaction of those assets or liabilities.

The Company maintains assets related to foreign currency derivative contracts which were classified as Other current and non-current financial assets and Other current and non-current financial liabilities, respectively, and are accounted at fair value within the statement of financial position. The Company uses the following hierarchy to determine and disclose the fair value of financial instruments with assessment techniques:

Level 1:	Quote values (unadjusted) in active markets for identical assets or liabilities

Level 2:	Valuation techniques for which the lowest level variable used, which is significant for the calculation, is directly or indirectly observable

Level 3:	Valuation techniques for which the lowest level variable used, which is significant for the calculation, is not observable.

During the reporting periods there were no transfers of items between fair value measurement categories. All of which were valued during the periods using Level 2.

2.11 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. The cost of finished goods and work in progress includes raw materials, direct labor, other direct costs and manufacturing overhead (based on operating capacity) to bring the goods to marketable condition, but it excludes interest expense. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts and production materials are stated at the lower of cost or net realizable value.

The initial cost of inventories includes the transfer of losses and gains from cash flow hedges, related to the purchase of raw materials.

Estimates are also made for obsolescence of raw materials and finished products based on turnover and age of the related goods.

2.12 Trade accounts receivable and other accounts receivable

Trade accounts receivable and other accounts receivable are measured and recognized at the transaction price at the time they are generated less the provision for expected credit losses, pursuant to the requirements of IFRS 15, since they do not have a significant financial component, less the provision of expected credit losses. The provision for expected credit losses is made applying a value impairment model based on expected credit losses for the following 12 months. The Group applies a simplified focus for trade receivables, thereby impairment is always recorded referring to expected losses during the whole life of the asset. The carrying amount of the asset is reduced by the provision of expected credit losses, and the loss is recognized in administrative expenses in the consolidated income statement by function.

2.13 Cash and cash equivalents

Cash and cash equivalents include cash on hand, bank balances, time deposits and other short-term highly liquid and low risk of change in value investments.

2.14 Other financial liabilities

Resources obtained from financial institutions as well as the issuance of debt securities are initially recognized at fair value, net of costs incurred during the transaction. Then, liabilities are valued by accruing interests in order to equal the current value with the future value of liabilities payable, using the effective interest rate method.

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualified assets, considered as those that require a substantial period of time in order to get ready for their forecasted use or sale, are added to the cost of those assets until the period in which the assets are substantially ready to be used or sold.

2.15 Income tax

The Company and its subsidiaries in Chile account for income tax according to the net taxable income calculated based on the rules in the Income Tax Law. Subsidiaries in other countries account for income taxes according to the tax regulations of the country in which they operate.

Deferred income taxes are calculated using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements, using the tax rates that have been enacted or substantively enacted on the balance sheet date and are expected to apply when the deferred income tax asset is realized, or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized.

The Company does not recognize deferred income taxes for temporary differences from investments in subsidiaries in which the Company can control the timing of the reversal of the temporary differences and it is probable that they will not be reversed in the near future.

The Group offsets deferred tax assets and liabilities if and only if it has legally recognized a right to offset against the tax authority the amounts recognized in those items; and intends to settle the resulting net debts, or to realize the assets and simultaneously settle the debts that have been offset by them.

2.16 Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

2.17 Leases

In accordance with IFRS 16 “Leases” Embotelladora Andina analyzes, at the beginning of the contract, the economic background of the agreement, to determine if the contract is, or contains, a lease, evaluating whether the agreement transfers the right to control the use of an identified asset for a period of time in exchange for a consideration. Control is considered to exist if the client has i) the right to obtain substantially all the economic benefits from the use of an identified asset; and ii) the right to direct the use of the asset.

The Company when operating as a lessee, at the beginning of the lease (on the date the underlying asset is available for use) records an asset for the right-of-use in the statement of financial position (under Property, plant and equipment) and a lease liability (under Other financial liabilities).

This asset is initially recognized at cost, which includes: i) value of the initial measurement of the lease liability; ii) lease payments made up to the start date less lease incentives received; iii) the initial direct costs incurred; and iv) the estimation of costs for dismantling or restoration. Subsequently, the right-of-use asset is measured at cost, adjusted by any new measurement of the lease liability, less accumulated depreciation and accumulated losses due to impairment of value. The right-of-use asset is depreciated in the same terms as the rest of similar depreciable assets, if there is reasonable certainty that the lessee will acquire ownership of the asset at the end of the lease. If such certainty does not exist, the asset depreciates at the shortest period between the useful life of the asset or the lease term.

On the other hand, the lease liability is initially measured at the present value of the lease payments, discounted at the incremental loan rate of the Company, if the interest rate implicit in the lease could not be easily determined. Lease payments included in the measurement of the liability include: i) fixed payments, less any lease incentive receivable; ii) variable lease payments; iii) residual value guarantees; iv) exercise price of a purchase option; and v) penalties for lease termination.

The lease liability is increased to reflect the accumulation of interest and is reduced by the lease payments made. In addition, the carrying amount of the liability is measured again if there is a modification in the terms of the lease (changes in the term, in the amount of payments or in the evaluation of an option to buy or change in the amounts to be paid). Interest expense is recognized as an expense and is distributed among the periods that constitute the lease period, so that a constant interest rate is obtained in each year on the outstanding balance of the lease liability.

Short-term leases, equal to or less than one year, or lease of low-value assets are excepted from the application of the recognition criteria described above, recording the payments associated with the lease as an expense in a linear manner throughout the lease term. The Company does not act as lessor, nor does it have variable payments as lessee.

2.18 Deposits for returnable containers

This liability comprises cash collateral, or deposit, received from customers for bottles and other returnable containers made available to them.

This liability pertains to the deposit amount that would be reimbursed when the customer or distributor returns the bottles and containers in good condition, together with the original invoice.

This liability is presented under Other current financial liabilities since the Company does not have legal rights to defer settlement for a period in excess of one year. However, the Company does not anticipate any material cash settlements for such amounts during the upcoming year.

2.19 Revenue recognition

The Company recognizes revenue when control over a good or service is transferred to the client. Control refers to the ability of the client to direct the use and obtain substantially all the benefits of the goods and services exchanged. Revenue is measured based on the consideration to which it is expected to be entitled for such transfer of control, excluding amounts collected on behalf of third parties.

Management has defined the following indicators for revenue recognition, applying the five-step model established by IFRS 15 “Revenue from contracts with customers”: 1) Identification of the contract with the customer; 2) Identification of performance obligations; 3) Determination of the transaction price; 4) Assignment of the transaction price; and 5) Recognition of revenue.

All the above conditions are met at the time the products are delivered to the customer. Net sales reflect the units delivered at list price, net of promotions, discounts and taxes.

The revenue recognition criteria of the good provided by Embotelladora Andina corresponds to a single performance obligation that transfers the product to be received to the customer.

2.20 Contributions of The Coca-Cola Company

The Company receives certain discretionary contributions from The Coca-Cola Company (TCCC) mainly related to the financing of advertising and promotional programs for its products in the territories where the Company has distribution licenses. The contribution received from TCCC are recognized in net income after the conditions agreed with TCCC in order to become a creditor to such incentive have been fulfilled, they are recorded as a reduction in the marketing expenses included in the Administration Expenses account. Given its discretionary nature, the portion of contributions received in one period does not imply it will be repeated in the following period.

2.21 Dividend distribution

The minimum mandatory dividend established by the Chilean Corporations Law is 30% of net income for the year, which must be ratified unanimously by the General Shareholders' Meeting. Net income is determined as of December 31 of each year, at which time the liability is recognized in the Company's consolidated financial statements.

Interim and final dividends are recorded at the time of their approval by the competent body, which in the first case is normally the Board of Directors of the Company, while in the second case it is the responsibility of the General Shareholders’ Meeting.

2.22 Critical accounting estimates and judgments

In preparing the Consolidated Financial Statements, the Company has used certain judgments and estimates made to quantify some of the assets, liabilities, income, expenses and commitments. Following is an explanation of the estimates and judgments that might have a material impact on future financial statements.

2.22.1 Impairment of goodwill and intangible assets with indefinite useful lives

The Company tests annually whether goodwill and intangible assets with indefinite useful life (such as distribution rights) have suffered any impairment. The recoverable amounts of cash generating units are determined based on value in use calculations. The significant judgments and assumptions used in the calculations include sales volumes and prices, discount rates, marketing expenses and other economic factors. The estimation of these variables requires a use of estimates and judgments as they are subject to inherent uncertainties; however, the assumptions are consistent with the Company’s internal planning and past results. Therefore, management evaluates, and updates estimates according to the conditions affecting the variables. If these assets are considered to have been impaired, they will be written off at their estimated fair value or future recovery value according to the lowest discounted cash flows analysis. On an annual basis and close to each fiscal year end discounted cash flows in the Company's cash generating units in Chile, Brazil, Argentina and Paraguay generated a higher value than the carrying values of the respective net assets, including goodwill of the Brazilian, Argentinian and Paraguayan subsidiaries.

2.22.2 Fair Value of Assets and Liabilities

IFRS require in certain cases that assets and liabilities be recorded at their fair value. Fair value is the price that would be received for selling an asset or paid to transfer a liability in a transaction ordered between market participants at the date of measurement.

The basis for measuring assets and liabilities at fair value are their current prices in an active market. For those that are not traded in an active market, the Company determines fair value based on the best information available by using valuation techniques.

In the case of the valuation of intangibles recognized as a result of acquisitions from business combinations, the Company estimates the fair value based on the "multi-period excess earning method", which involves the estimation of future cash flows generated by the intangible assets, adjusted by cash flows that do not come from these, but from other assets. The Company also applies estimations over the period during which the intangible assets will generate cash flows, cash flows from other assets, and a discount rate.

Other assets acquired, and liabilities assumed in a business combination are carried at fair value using valuation methods that are considered appropriate under the circumstances. Assumptions include the depreciated cost of recovery and recent transaction values for comparable assets, among others. These valuation techniques require certain inputs to be estimated, including the estimation of future cash flows.

2.22.3 Allowances for doubtful accounts

The Group uses a provision matrix to calculate expected credit losses for trade receivables. Provisions are based on due days for various groups of customer segments that have similar loss patterns (i.e., by geography region, product type, customer type and rating, and credit letter coverage and other forms of credit insurance).

The provision matrix is initially based on the historically observed non-compliance rates for the Group. The Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. For example, if expected economic conditions (i.e., gross domestic product) are expected to deteriorate over the next year, which can lead to more non-compliances in the industry, historical default rates are adjusted. At each closing date, the observed historical default rates are updated and changes in prospective estimates are analyzed. The assessment of the correlation between observed historical default rates, expected economic conditions and expected credit losses are significant estimates.

2.22.4 Useful life, residual value and impairment of property, plant, and equipment

Property, plant, and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of those assets. Changes in circumstances, such as technological advances, changes to the Company’s business model, or changes in its capital strategy might modify the effective useful lives as compared to our estimates. Whenever the Company determines that the useful life of Property, plant and equipment might be shortened, it depreciates the excess between the net book value and the estimated recoverable amount according to the revised remaining useful life. Factors such as changes in the planned usage of manufacturing equipment, dispensers, transportation equipment and computer software could make the useful lives of assets shorter. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of any of those assets may not be recovered. The estimate of future cash flows is based, among other factors, on certain assumptions about the expected operating profits in the future. The Company’s estimation of discounted cash flows may differ from actual cash flows because of, among other reasons, technological changes, economic conditions, changes in the business model, or changes in operating profit. If the sum of the projected discounted cash flows (excluding interest) is less than the carrying amount of the asset, the asset shall be written-off to its estimated recoverable value.

2.22.5 Contingent liabilities

Provisions for litigation and other contingencies are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the current obligation at the date of issuance of the financial statements, considering the risks and uncertainties surrounding the obligation. When a provision is measured using estimated cash flows to settle the current obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The accrual of the discount is recognized as a finance cost. Incremental legal costs expected to be incurred in settling the legal claim are included in the measurement of the provision. If management is unable to reliably estimate the obligation or conclude no loss is probable but it is reasonably possible that a loss may be incurred, no provision is recorded but the contingency is disclosed in the notes to the consolidated financial statements.

Provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic benefits will be required to settle the obligation, the provision is reversed.

A contingent liability does not imply the recognition of a provision. Legal costs expected to be incurred in defending the legal claim are recognized in profit or loss when incurred.

2.22.6. Employee benefits

The Company records a liability regarding indemnities for years of service that will be paid to employees in accordance with individual and collective agreements subscribed with employees, which is recorded at actuarial value in accordance with IAS 19 “Employee Benefits”. At year-end there have been no modifications to the agreements.

Results from updated of actuarial variables are recorded within other comprehensive income in accordance with IAS 19.

Additionally, the Company has retention plans for some officers, which have a provision pursuant to the guidelines of each plan. These plans grant the right to certain officers to receive a cash payment on a certain date once they have fulfilled with the required years of service.

The Company and its subsidiaries have recorded a provision to account for the cost of vacations and other employee benefits on an accrual basis. These liabilities are recorded under current non-financial liabilities.

2.23 New Standards, Interpretations and Amendments to IFRS

2.23.1 New Standards, Interpretations and Amendments for annual periods beginning on April 1, 2023

IFRS 17 "Insurance Contracts". Issued in May 2017, it replaces the current IFRS 4. IFRS 17 will primarily change the accounting for all entities that issue insurance contracts and investment contracts with discretionary participation features. The standard applies to annual periods beginning on or after January 1, 2023.

Amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", issued in February 2021. The amendments are intended to improve disclosures of accounting policies and help users of financial statements to distinguish between changes in accounting estimates and changes in accounting policies. This amendment should be applied to annual periods beginning on or after January 1, 2023.

Amendment to IAS 12 - Deferred Taxes Relating to Assets and Liabilities Arising from a Single Transaction. These amendments require companies to recognize deferred taxes on transactions that, on initial recognition, result in equal amounts of taxable and deductible temporary differences. This amendment should be applied to annual periods beginning on or after January 1, 2023.

The adoption of the standards, amendments and interpretations described above do not have a significant impact on the consolidated financial statements of the Company.

2.23.2 New Standards, Interpretations and Amendments for annual periods beginning on or after January 1, 2024

Standards and interpretations, as well as IFRS amendments, which have been issued, but have still not become effective as of the date of these financial statements are set forth below. The Company has not made an early adoption of these standards:

Amendment to IAS 1 "Presentation of Financial Statements" on classification of liabilities. This amendment clarifies that liabilities are classified as current or non-current depending on the rights that exist at the end of the reporting period. The classification is not affected by the entity's expectations or events after the reporting date (e.g., receipt of a waiver or covenant breach). The amendment also clarifies what IAS 1 means when it refers to the "settlement" of a liability. The amendment should be applied retrospectively in accordance with IAS 8. Effective date of initial application January 1, 2022, however, this date was deferred to January 1, 2024.

Amendments to IFRS 16 "Leases" on sale and leaseback, which explains how an entity should recognize the rights to use the asset and how gains or losses arising from the sale and leaseback should be recognized in the financial statements.

The Company's management estimates that the adoption of the standards, interpretations and amendments described above will not have a significant impact on the consolidated financial statements of the Company during the first period of their application.

3 – FINANCIAL REPORTING BY SEGMENT

The Company provides financial information by segments according to IFRS 8 “Operating Segments,” which establishes standards for reporting by operating segment and related disclosures for products and services, and geographic areas.

The Company’s Board of Directors and Management measures and assesses performance of operating segments based on the operating income of each of the countries where there are Coca-Cola franchises.

The operating segments are determined based on the presentation of internal reports to the Company´s chief strategic decision-maker. The chief operating decision-maker has been identified as the Company´s Board of Directors who makes the Company’s strategic decisions.

The following operating segments have been determined for strategic decision making based on geographic location:

Operation in Chile

Operation in Brazil

Operation in Argentina

Operation in Paraguay

The four operating segments conduct their businesses through the production and sale of soft drinks and other beverages, as well as packaging materials.

Expenses and revenue associated with the Corporate Officer were assigned to the operation in Chile in the soft drinks segment because Chile is the country that manages and pays the corporate expenses, which would also be substantially incurred, regardless of the existence of subsidiaries abroad.

Total revenues by segment include sales to unrelated customers and inter-segments, as indicated in the consolidated statement of income of the Company.

A summary of the Company's operations by segment according to IFRS is as follows:

For the period ended March 31, 2023	Operation in Chile			Operation in Argentina			Operation in Brazil			Operation in Paraguay			Inter-segment eliminations			Consolidated, total
	ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Revenues from ordinary activities		312,533,035			174,873,578			161,324,995			53,841,508			(717,482	)		701,855,634
Cost of sales		(207,685,479	)		(86,876,407	)		(101,874,081	)		(29,545,584	)		717,482			(425,264,069	)
Distribution expenses		(27,045,265	)		(23,934,106	)		(12,107,795	)		(3,202,150	)		-			(66,289,316	)
Administrative expenses		(47,194,470	)		(30,838,692	)		(26,691,084	)		(7,241,650	)		-			(111,965,896	)
Financial income		4,378,341			4,574,255			2,429,597			246,792			-			11,628,985
Financial costs		(6,931,002	)		(212,341	)		(6,773,220	)		-			-			(13,916,563	)
Net financial costs		(2,552,661	)		4,361,914			(4,343,623	)		246,792			-			(2,287,578	)
Share of entity in income of associates accounted for using the equity method, total		892,297			-			177,964			-			-			1,070,261
Income tax expense		(15,373,833	)		(15,275,084	)		(3,737,614	)		(1,619,029	)		-			(36,005,560	)
Oher income (expenses) (*)		(6,264,404	)		(7,407,403	)		(2,510,197	)		165,990			-			(16,016,014	)
Net income of the segment reported		7,309,220			14,903,801			10,238,565			12,645,877			-			45,097,463

Depreciation and amortization		10,684,367			7,706,514			7,467,659			3,275,199			-			29,133,739
														-
Current assets		471,640,732			130,120,436			346,609,780			78,906,024			-			1,027,276,972
Non-current assets		782,452,962			236,338,911			536,283,320			252,556,660			-			1,807,631,853
Segment assets, total		1,254,093,694			366,459,348			882,893,100			331,462,684			-			2,834,908,825

Carrying amount in associates accounted for using the equity method, total		55,019,439			-			36,668,491			-			-			91,687,930

Segment disbursements of non-monetary assets		27,965,380			10,742,336			8,173,208			4,115,086			-			50,996,010

Current liabilities		533,016,499			109,008,748			119,033,556			35,173,005						796,231,808
Non-current liabilities		564,225,880			26,114,552			498,675,934			15,492,455						1,104,508,821
Segment liabilities, total		1,097,242,379			135,123,299			617,709,491			50,665,460						1,900,740,629

Cash flows (used in) provided by in Operating Activities		13,354,484			22,918,684			14,022,242			19,326,324			-			69,621,734
Cash flows (used in) provided by Investing Activities		(28,501,394	)		(10,742,336	)		(8,173,208	)		(4,115,086	)		-			(51,532,024	)
Cash flows (used in) provided by Financing Activities		(32,483,547	)		(330,172	)		(694,096	)		-			-			(33,507,815	)

(*) Other income (expenses) is the sum of the other income, other expenses, other (loss) gains, foreign exchange differences and income by indexation units.

For the period ended March 31, 2022	Operation in Chile			Operation in Argentina			Operation in Brazil			Operation in Paraguay			Inter-segment eliminations			Consolidated, total
	ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Revenues from ordinary activities		290,996,690			152,350,585			128,510,463			53,127,005			(757,065	)		624,227,678
Cost of sales		(190,351,841	)		(78,314,193	)		(81,850,876	)		(28,259,411	)		757,065			(378,019,256	)
Distribution expenses		(23,949,483	)		(21,112,857	)		(9,678,706	)		(3,022,480	)		-			(57,763,526	)
Administrative expenses		(41,479,768	)		(23,904,170	)		(20,598,273	)		(7,044,334	)		-			(93,026,545	)
Subtotal Operating Income		35,215,598			29,019,365			16,382,608			14,800,780			-			95,418,351
Financial income		6,296,939			2,804,502			1,986,058			217,961			-			11,305,460
Financial costs		(6,868,355	)		(51,176	)		(6,694,945	)		-			-			(13,614,476	)
Net financial costs		(571,416	)		2,753,326			(4,708,887	)		217,961			-			(2,309,016	)
Share of entity in income of associates accounted for using the equity method, total		599,540			-			(1,112,538	)		-			-			(512,998	)
Income tax expense		(24,883,732	)		(11,543,937	)		(2,208,148	)		(1,790,538	)		-			(40,426,355	)
Oher income (expenses) (*)		(10,985,226	)		(4,582,024	)		(2,486,520	)		97,185			-			(17,956,585	)
Net income of the segment reported		(625,236	)		15,646,730			5,866,515			13,325,388			-			34,213,397

Depreciation and amortization		9,764,128			6,980,738			6,306,148			2,907,586			-			25,958,600

Current assets		643,385,604			125,960,392			192,040,606			71,900,183			-			1,033,286,785
Non-current assets		706,019,468			208,304,086			729,449,624			257,206,313						1,900,979,491
Segment assets, total		1,349,405,072			334,264,478			921,490,230			329,106,496			-			2,934,266,276

Carrying amount in associates accounted for using the equity method, total		53,317,889			-			41,575,634			-			-			94,893,523

Segment disbursements of non-monetary assets		18,574,682			5,779,746			7,277,794			4,289,085			-			35,921,307

Current liabilities		274,445,455			93,373,582			119,947,298			29,550,049			-			517,316,384
Non-current liabilities		747,428,420			18,026,587			526,779,157			15,994,909			-			1,308,229,073
Segment liabilities, total		1,021,873,875			111,400,169			646,726,455			45,544,958			-			1,825,545,457

Cash flows (used in) provided by in Operating Activities		37,394,656			35,633,798			(1,655,891	)		20,143,501			-			91,516,064
Cash flows (used in) provided by Investing Activities		48,624,986			(5,779,746	)		(7,277,794	)		(4,289,085	)		-			31,278,361
Cash flows (used in) provided by Financing Activities		(33,966,263	)		(124,000	)		(714,291	)		-			-			(34,804,554	)

(*) Other income (expenses) is the sum of the other income, other expenses, other (loss) gains, foreign exchange differences and income by indexation units.

4 – CASH AND CASH EQUIVALENTS

The composition of cash and cash equivalents is as follows:

By item	03.31.2023		12.31.2022
	ThCh$		ThCh$
Cash		437,067		203,931
Bank balances		100,583,604		108,486,568
Other fixed rate instruments		158,247,165		182,991,488
Cash and cash equivalents		259,267,836		291,681,987

Other fixed income instruments correspond primarily to investments in short-term instruments with good credit ratings, such as Time Deposits and Mutual Funds, which are highly liquid, with insignificant risk of change in value and easily converted into known amounts of cash. There are no restrictions for significant amounts available to cash.

By currency	03.31.2023		12.31.2022
	ThCh$		ThCh$
USD		21,931,721		14,266,343
EUR		1,379,039		870,613
ARS		33,680,741		29,215,288
CLP		82,936,617		138,205,025
PYG		47,880,961		39,201,097
BRL		71,458,757		69,923,621
Cash and cash equivalents		259,267,836		291,681,987

5 – OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS

The composition of other financial assets is as follows:

	Balance
	Current				Non-current
Other financial assets	03.31.20223		12.31.2022		03.31.2023		12.31.2022
	ThCh$		ThCh$		ThCh$		ThCh$
Financial assets (1)		95,426,488		92,838,315		3,092,778		3,317,778
Financial assets at fair value (2)		152,052,819		170,206,554		82,077,642		75,297,737
Other financial assets measured at amortized cost (3)		-		-		15,259,137		16,237,196
Total		247,479,307		263,044,869		100,429,557		94,852,711

(1)

Financial instrument that does not meet the definition of cash equivalents as defined in Note 2.13.

(2)

Market value of hedging instruments. See details in Note 22.

(3)

Correspond to the rights in the Argentinean company Alimentos de Soya S.A., manufacturing company of “AdeS” products, which are framed in the purchase of the "AdeS" brand managed by The Coca-Cola Company at the end of 2016.

6 – OTHER CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS

The composition of other non-financial assets is as follows:

	Balance
	Current				Non-current
Other non-financial assets	03.31.2023		12.31.2022		03.31.2023		12.31.2022
	ThCh$		ThCh$		ThCh$		ThCh$
Prepaid expenses		11,946,650		6,059,201		1,605,135		1,074,940
Tax credit remainder (1)		1,220,126		905,826		38,895,051		40,922,425
Judicial deposits		-		-		15,018,501		15,723,829
Others (2)		11,278,899		19,991,973		1,901,315		1,951,072
Total		24,445,675		26,957,000		57,420,002		59,672,266

(1)

(a) In November 2006, Rio de Janeiro Refrescos Ltda. ("RJR") filed a court order No. 0021799-23.2006.4.02.5101 seeking recognition of the right to exclude ICMS (Tax on Commerce and Services) from the PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) calculation base, as well as recognition of the right to obtain reimbursement of amounts unduly collected since November 14, 2001, duly restated using the Selic interest rate. On May 20, 2019, the ruling favoring RJR became final, allowing the recovery of amounts overpaid from November 14, 2001 to August 2017. It is worth noting that in September 2017, RJR had already obtained a Security Mandate, which granted it the right to exclude, from that date, the ICMS from the PIS and COFINS calculation base.

The company took steps to assess the total amount of the credit at issue for the period of unduly collection of taxes from November 2001 to August 2017, totaling approximately CLP 100,550 million (CLP 92,783 million at December 2021) (BRL 613 million, of which BRL 370 million corresponds to capital and BRL 243 million to interest and monetary restatement. These amounts were recorded as of December 31, 2019. In addition, the company acknowledged the indirect costs (attorneys' fees, consulting, auditing, indirect taxes and other obligations) resulting from the recognition of the right acquired in court, totaling BRL 175 million.

As of March 31, 2023, the total amount of the credit has been offset.

Companhia de Bebidas Ipiranga, acquired in September 2013, also filed a court order n. 0005018-15.2002.4.03.6110 to recognize the same issue as the one previously descibed for RJR. On September 12, 2019, the ruling favoring Ipiranga became final, allowing the recovery of the amounts overpaid from September 12, 1990 to December 12, 2013 (date on which Ipiranga was acquired by RJR). The Ipiranga credit will be generated in the name of RJR, however pursuant to a contractual clause ("Subscription Agreement for Shares and Exhibits"), which requireds RJR to transfer any gain resulting from this action to the former shareholders of Ipiranga. The Company performed procedures to assess the total amount of the credit in question for the tax period expired, totaling BRL 162,588 thousand, of which BRL 80,177 thousand correspond to principal and BRL 82,411 thousand correspond to interest and monetary restatement. These amounts were recorded in the year ended December 31, 2020. The payment of income tax is made at the time of liquidation of the credit, with which the respective deferred tax liability of BRL 55,280 thousand was recorded. The value of PIS and Cofins recorded was BRL 7,623 thousand. At March 31, 2023 the value to be transferred to the former shareholders of Ipiranga is CLP 26,130 million or BRL 167,952 thousand) (CLP 27,310 million at December 31, 2022 or BRL 166,491 thousand). The liability is recorded in other non-financial liabilities (Note 20).

(2)

Other non-financial assets are mainly composed of advances to suppliers.

7 – TRADE ACCOUNTS AND OTHER ACCOUNTS RECEIVABLE

The composition of trade and other accounts receivable is as follows:

	Current				Non-current
Trade debtors and other accounts receivable, Net	03.31.2023		12.31.2022		03.31.2023		12.31.2022
	ThCh$		ThCh$		ThCh$		ThCh$
Trade debtors		194,072,092		238,146,331		53,922		56,781
Other debtors		27,028,942		39,798,245		549,444		483,139
Other accounts receivable		2,375,628		1,825,710		-		-
Total		223,476,662		279,770,286		603,366		539,920

	Current				Non-current
Trade debtors and other accounts receivable, Gross	03.31.2023		12.31.2022		03.31.2023		12.31.2022
	ThCh$		ThCh$		ThCh$		ThCh$
Trade debtors		199,009,815		242,638,974		53,922		56,781
Other debtors		27,304,950		40,206,431		549,444		483,139
Other accounts receivable		2,471,080		1,921,211		-		-
Total		228,785,845		284,766,616		603,366		539,920

The stratification of the portfolio for current and non-current trade debtors without impairment impact, is as follows:

	03.31.2023		12.31.2022
	ThCh$		ThCh$
Less than one month		183,080,008		229,587,868
Between one and three months		7,932,803		4,577,833
Between three and six months		h1,078,929		2,418,252
Between six and eight months		5,887,175		5,392,862
Older than eight months		1,084,823		718,940
Total		199,063,738		242,695,755

The Company has approximately 292,153 clients, which may have balances in the different sections of the stratification. The number of clients is distributed geographically with 70,000 in Chile, 84,153 in Brazil, 67,580 in Argentina and 70,420 in Paraguay.

The provision for expected credit losses associated with each tranche of the portfolio for current and non-current trade receivables is as follows:

	03.31.2023
	Credit amount ThCh$		Impairment provision ThCh$			Percentage %
Less than one month		183,080,008		(474,093	)		0.26	%
Between one and three months		7,932,803		(387,486	)		4.88	%
Between three and six months		1,078,929		(847,333	)		78.53	%
Between six and eight months		5,887,175		(2,812,098	)		47.77	%
Older than eight months		1,084,822		(416,714	)		38.41	%
Total		199,063,737		(4,937,724	)

	12.31.2022
	Credit amount ThCh$		Impairment provision ThCh$			Percentage %
Less than one month		229,587,868		(701,701	)		0.31	%
Between one and three months		4,577,833		(431,630	)		9.43	%
Between three and six months		2,418,252		(786,856	)		32.54	%
Between six and eight months		5,392,862		(2,402,146	)		44.54	%
Older than eight months		718,940		(170,310	)		23.69	%
Total		242,695,755		(4,492,643	)

The movement in the allowance for expected credit losses is presented below:

	03.31.2023			12.31.2022
	ThCh$			ThCh$
Opening balance		4,492,643			4,711,371
Increase (decrease)		78,161			(150,671	)
Provision reversal		(113	)		(654,381	)
Increase (decrease) for changes of foreign currency		367,033			586,324
Sub – total movements		445,081			(218,728	)
Ending balance		4,937,724			4,492,643

The provision for expected credit losses is recorded as an administrative expense in the statements of income by function.

8 – INVENTORIES

The composition of inventories is detailed as follows:

Details	03.31.2023			12.31.2022
	ThCh$			ThCh$
Raw materials (1)		101,185,720			104,833,902
Finished goods		113,544,299			114,164,680
Spare parts and supplies		28,272,700			27,109,494
Work in progress		346,613			216,164
Other inventories		5,144,360			4,020,372
Obsolescence provision (2)		(4,625,835	)		(4,457,956	)
Total		243,867,857			245,886,656

The cost of inventory recognized as cost of sales amounts to CLP 363,263,559 thousand and CLP 337,253,794 thousand as of March 31, 2023 and 2022, respectively.

(1)

Approximately 80% is composed of concentrate and sweeteners used in the preparation of beverages, as well as caps and PET supplies used in the packaging of the product.

(2)

The obsolescence provision is related mainly with the obsolescence of spare parts classified as inventories and to a lesser extent to finished products and raw materials. The general standard is to provision all those multi-functional spare parts without utility in rotation in the last four years prior to the technical analysis technical to adjust the provision. In the case of raw materials and finished products, the obsolescence provision is determined according to maturity.

9 – TAX ASSETS AND LIABILITIES

The composition of current tax accounts receivable is the following:

Tax assets	03.31.2023		12.31.2022
	ThCh$		ThCh$
Monthly provisional payments		1,384,380		25,428,344
Tax credits		10,004,448		6,640,888
Recoverable taxes from prior years		10,053		473,424
Surplus Tax Credit		4,628,691		6,387,530
Other Recoverable Taxes		-		396,241
Total		16,027,572		39,326,427

The composition of current tax accounts payable is the following:

	Current
Tax liabilities	03.31.2023		12.31.2022
	ThCh$		ThCh$
Income tax expense		25,881,734		14,615,447
Total		25,881,734		14,615,447

10 – INCOME TAX EXPENSE AND DEFERRED TAXES

10.1 Income tax expense

The current and deferred income tax expenses are detailed as follows:

Details	03.31.2023			12.31.2022
	ThCh$			ThCh$
Current income tax expense		(58,678,298	)		(29,328,938	)
Current tax adjustment previous period					-
Foreign dividends tax withholding expense		(3,222,178	)		(11,452,370	)
Other current tax expense (income)					-
Current income tax expense		(61,900,476	)		(40,781,308	)
Expense (income) for the creation and reversal of temporary differences of deferred tax and others		25,894,916			354,953
Expense (income) for deferred taxes		25,894,916			354,953
Total income tax expense		(36,005,560	)		(40,426,355	)

The distribution of national and foreign tax expenditure is as follows:

Income taxes	03.31.2023			03.31.2022
	ThCh$			ThCh$
Current taxes
Foreign		(15,069,044	)		(11,104,776	)
National		(46,831,432	)		(29,676,532	)
Current tax expense		(61,900,476	)		(40,781,308	)
Deferred taxes
Foreign		(5,562,684	)		(4,437,847	)
National		31,457,600			4,792,800
Deferred tax expense		25,894,916			354,953
Income Tax expense		(36,005,560	)		(40,426,355	)

The reconciliation of the tax expense using the statutory rate with the tax expense using the effective rate is as follows:

Reconciliation of effective rate	03.31.2023			03.31.2022
	ThCh$			ThCh$
Net income before taxes		81,103,023			74,639,752
Tax expense at legal rate (27.0%)		(31,625,815	)		(20,152,733	)
Effect of tax rate in other jurisdictions		(966,927	)		(150,239	)
Permanent differences:
Withholding and other non-taxable income		(3,510,949	)		(14,497,786	)
Non-deductible expenses		(987,428	)		(972,240	)
Tax effect on excess tax provision in previous periods		136,913			1,079
Tax effect of price-level restatement for Chilean companies		(1,753,874	)		(4,615,698	)
Subsidiaries tax withholding expense and other legal tax debits and credits		2,702,520			(38,738	)
Adjustments to tax expense		(3,412,818	)		(20,123,383	)
Tax expense at effective rate		(36,005,560	)		(40,426,355	)
Effective rate		44.4	%		54.2	%

The applicable income tax rates in each of the jurisdictions where the Company operates are the following:

	Rate
Country	2023			2022
Chile		27.00	%		27.00	%
Brazil		34.00	%		34.00	%
Argentina		35.00	%		35.00	%
Paraguay		10.00	%		10.00	%

10.2 Deferred taxes

The net cumulative balances of temporary differences resulted in deferred tax assets and liabilities, which are detailed as follows:

	03.31.2023						12.31.2022
Temporary differences	Assets			Liabilities			Assets			Liabilities
	ThCh$			ThCh$			ThCh$			ThCh$
Property, plant and equipment		5,246,979			(55,416,851	)		5,351,293			(58,230,728	)
Obsolescence provision		1,800,261			-			1,871,168			-
ICMS exclusion credit		4,368,844			-			2,686,693			-
Employee benefits		2,714,069			-			5,033,868			(3,348	)
Provision for severance indemnity		2,553,633			(19,658	)		2,789,893			(42,264	)
Tax loss carry forwards (1)		3,106,666			-			5,569,124			-
Tax goodwill Brazil		-			(9,975,794	)		-			(9,081,512	)
Contingency provision		26,492,563			-			27,145,591			-
Foreign Exchange differences (2)		10,783,825			-			11,478,538			-
Allowance for doubtful accounts		854,432			-			803,608			-
Coca-Cola incentives (Argentina)		-			-			633,919			-
Assets and liabilities for placement of bonds		-			(598,444	)		-			(610,594	)
Financial expense		-			(1,718,163	)		-			(1,894,010	)
Lease liabilities		1,737,427			-			1,874,166			-
Inventories		1,192,081			-			1,312,833			-
Distribution rights		-			(150,781,790	)		-			(154,669,995	)
Hedge derivatives		-			-			-			-
Prepaid income		5,343,740			(15,039	)		5,339,265			(8,287	)
Spare parts		-			(4,357,230	)		-			(4,142,782	)
Intangibles		75,694			(7,080,178	)		69,395			(7,388,202	)
Others		2,893,983			(3,785,443	)		5,282,818			(4,520,673	)
Subtotal		69,164,197			(233,751,657	)		77,242,172			(240,592,395	)
Offsetting of deferred tax assets/(liabilities)		(67,042,262	)		67,042,262			(74,813,839	)		74,813,839
Total assets and liabilities net		2,121,935			(166,709,395	)		2,428,333			(165,778,556	)

(1)

Tax losses mainly associated with entities in Chile. Tax losses have no expiration date in Chile.

(2)

Corresponds to deferred taxes for exchange rate differences generated on the translation of debts expressed in foreign currency that for tax purposes are recognized when incurred.

Deferred tax account movements are as follows:

Movement	03.31.2023			12.31.2022
	ThCh$			ThCh$
Opening balance		163,350,223			166,596,100
Increase (decrease) in deferred tax		4,988,591			(8,090,171	)
Increase (decrease) due to foreign currency translation(*)		(3,751,354	)		4,844,294
Total movements		1,237,237			(3,245,877	)
Ending balance		164,587,460			163,350,223

(*) Includes IAS 29 effects due to inflation in Argentina

11 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment at the close of each period is detailed as follows:

Property, plant and equipment, gross	03.31.2023		12.31.2022
	ThCh$		ThCh$
Construction in progress		54,402,121		49,169,567
Land		102,319,747		104,906,878
Buildings		328,454,165		337,689,681
Plant and equipment		676,022,080		693,153,093
Information technology equipment		34,795,000		34,992,575
Fixed installations and accessories		68,565,894		69,798,556
Vehicles		74,364,010		75,759,020
Leasehold improvements		343,516		362,243
Rights of use		73,970,923		73,946,435
Other properties, plant and equipment (1)		442,612,250		448,561,681
Total Property, plant and equipment, gross		1,855,849,706		1,677,828,019

Accumulated depreciation of Property, plant and equipment	03.31.2023			12.31.2022
	ThCh$			ThCh$
Buildings		(115,853,358	)		(117,237,092	)
Plant and equipment		(488,890,400	)		(499,070,234	)
Information technology equipment		(26,994,061	)		(27,257,028	)
Fixed installations and accessories		(43,198,315	)		(44,057,493	)
Vehicles		(43,540,162	)		(44,600,066	)
Leasehold improvements		(269,783	)		(282,057	)
Rights of use		(56,140,102	)		(53,350,442	)
Other properties, plant and equipment (1)		(300,343,399	)		(304,264,058	)
Total accumulated depreciation		(1,075,229,580	)		(961,448,892	)
Total Property, plant and equipment, net		780,620,126			798,221,259

(1) The net balance of each of these categories is presented below:

Other Property, plant and equipment, net	03.31.2023		12.31.2022
	ThCh$		ThCh$
Bottles		45,665,694		46,351,209
Marketing and promotional assets (market assets)		70,062,739		70,149,875
Other Property, plant and equipment		26,540,418		27,796,539
Total		142,268,851		144,297,623

11.1 Movements

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

	Construction in progress			Land			Buildings, net			Plant and equipment, net			IT equipment, net			Fixed installations and accessories, net			Vehicles, net			Leasehold improvements, net			Others			Rights-of-use, net (1)			Property, plant and equipment, net
	ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Opening balance at 01.01.2023		49,169,567			104,906,878			220,452,589			194,082,859			7,735,547			25,741,063			31,158,954			80,186			144,297,623			20,595,993			798,221,259
Additions		22,879,282			-			-			2,996,941			157,205			3,764			31,542			7,087			14,152,826			-			40,228,647
Right-of use additions		-			-			-			-			-			-			-			-			-			452,792			452,792
Disposals		-			-			(6,707	)		(3,293	)		-			-			(17,229	)		-			(503,384	)		-			(530,613	)
Transfers between items of Property, plant and equipment		(16,796,328	)		-			2,169,029			5,659,766			990,873			1,085,454			2,111,208			-			4,108,978			671,020			-
Right-of-use transfers		-			-			-			-			-			-			-			-			-			-			-
Depreciation expense		-			-			(2,074,868	)		(8,184,053	)		(748,545	)		(857,390	)		(1,557,014	)		(9,978	)		(11,882,236	)					(25,314,084	)
Amortization																													(2,503,281	)		(2,503,281	)
Increase (decrease) due to foreign currency translation differences		(1,654,921	)		(2,587,131	)		(8,107,394	)		(6,789,375	)		(333,866	)		(641,908	)		(875,320	)		(3,562	)		(5,660,114	)		(709,205	)		(27,362,796	)
Other increase (decrease) (1)		804,521			0			168,158			(631,165	)		(275	)		36,596			(28,293	)		-			(2,244,842	)		(676,498	)		(2,571,798	)
Total movements		5,232,554			(2,587,131	)		(7,851,782	)		(6,951,179	)		65,392			(373,484	)		(335,106	)		(6,453	)		(2,028,772	)		(2,765,172	)		(17,601,133	)
Ending balance at 03.31.2023		54,402,121			102,319,747			212,600,807			187,131,680			7,800,939			25,367,579			30,823,848			73,733			142,268,851			17,830,821			780,620,126

Right of use assets is composed as follows:

Right-of-use	Gross asset		Accumulated depreciation			Net asset
	ThCh$		ThCh$			ThCh$
Constructions and buildings		7,691,279		(4,477,775	)		3,213,504
Plant and Equipment		45,700,806		(34,110,906	)		11,589,900
IT Equipment		1,120,961		(1,043,124	)		77,837
Motor vehicles		10,858,932		(8,018,476	)		2,840,456
Others		8,598,946		(8,489,822	)		109,124
Total		73,970,924		(56,140,103	)		17,830,821

Lease liabilities interest expense for the closing of the period reached CLP 550,366 thousand.

(1)

Corresponds mainly to the effect of adopting IAS 29 in Argentina.

	Construction in progress			Land		Buildings, net			Plant and equipment, net			IT equipment, net			Fixed facilities and accessories, net			Vehicles, net			Leasehold improvements, net			Others			Rights-of-use, net (1)			Property, plant and equipment, net
	ThCh$			ThCh$		ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Opening balance at 01.01.2022		56,280,594			101,286,107		203,343,125			169,651,555			5,613,217			23,099,121			19,184,600			113,289			114,153,544			23,653,975			716,379,127
Additions		75,269,957			-		867,990			21,280,010			922,233			74,995			636,420			10,275			68,730,337			-			167,792,217
Right-of use additions		-			-		-			-			-			-			-			-			-			5,883,061			5,883,061
Disposals		(32,456	)		-		(16,174	)		(538,429	)		(15,105	)		-			(4,522	)		-			(2,249,837	)		(67,398	)		(2,923,921	)
Transfers between items of Property, plant and equipment		(84,598,804	)		159,232		10,014,587			33,485,897			3,487,406			3,384,472			16,037,695			51,403			17,940,342			37,770			-
Right-of-use transfers		-			-		-			-			-			-			-			-			-			-			-
Depreciation expense		-			-		(8,477,029	)		(35,372,214	)		(2,641,086	)		(3,365,827	)		(5,524,208	)		(68,741	)		(49,526,391	)		-			(104,975,496	)
Amortization		-			-		-			-			-			-			-			-			-			(9,993,249	)		(9,993,249	)
Increase (decrease) due to foreign currency translation differences		4,263,117			3,461,539		11,105,445			7,324,221			43,790			1,282,713			852,241			10,324			6,450,271			1,235,657			36,029,318
Other increase (decrease) (1)		(2,012,841	)		-		3,614,645			(1,748,181	)		325,092			1,265,589			(23,272	)		(36,364	)		(11,200,643	)		(153,823	)		(9,969,798	)
Total movements		(7,111,027	)		3,620,771		17,109,464			24,431,304			2,122,330			2,641,942			11,974,354			(33,103	)		30,144,079			(3,057,982	)		81,842,132
Ending balance at 12.31.2022		49,169,567			104,906,878		220,452,589			194,082,859			7,735,547			25,741,063			31,158,954			80,186			144,297,623			20,595,993			798,221,259

Right of use assets is composed as follows:

Right-of-use	Gross asset		Accumulated depreciation			Net asset
	ThCh$		ThCh$			ThCh$
Constructions and buildings		6,694,251		(3,452,700	)		3,241,551
Plant and Equipment		47,377,683		(33,624,676	)		13,753,007
IT Equipment		1,214,851		(1,081,741	)		133,110
Motor vehicles		9,395,320		(6,066,615	)		3,328,705
Others		9,264,330		(9,124,710	)		139,620
Total		73,946,435		(53,350,442	)		20,595,993

Lease liabilities interest expense for the year ended December 31, 2022 reached CLP 2,092,868 thousand.

(1)

Corresponds mainly to the effect of adopting IAS 29 in Argentina.

12 – RELATED PARTIES

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

12.1 Accounts receivable:

					03.31.2023				12.31.2022
Taxpayer ID	Company	Relationship	Country	Currency	Current		Non-current		Current		Non-current
					ThCh$		ThCh$		ThCh$		ThCh$
96.891.720-K	Embonor S.A.	Shareholder related	Chile	CLP		7,270,426		-		10,852,709		-
96.714.870-9	Coca-Cola de Chile S.A.	Shareholder	Chile	CLP		30,872		109,318		15,444		109,318
Foreign	Alimentos de Soja S.A.U.	Shareholder related	Argentina	ARS		340,517		-		237,439		-
96.517.210-2	Embotelladora Iquique S.A.	Shareholder related	Chile	CLP		1,008,781		-		745,048		-
86.881.400-4	Envases CMF S.A.	Associate	Chile	CLP		877,153		-		925,189		-
77.526.480-2	Comercializadora Nova Verde	Common shareholder	Chile	CLP		2,926,170		-		2,048,054		-
76.572.588-7	Coca-Cola del Valle New Ventures S.A.	Associate	Chile	CLP		170,638		-		143,002		-
76.140.057-6	Monster	Associate	Chile	CLP		78,717		-		86,492		-
79.826.410-9	Guallarauco	Associate	Chile	CLP		8,789		-		8,790		-
Total						12,712,063		109,318		15,062,167		109,318

12.2 Accounts payable:

					03.31.2023				12.31.2022
Taxpayer ID	Company	Relationship	Country	Currency	Current		Non-current		Current		Non-current
					ThCh$		ThCh$		ThCh$		ThCh$
96.714.870-9	Coca-Cola de Chile S.A.	Shareholder	Chile	CLP		28,647,037		-		32,205,880		-
Foreign	Recofarma do Indústrias Amazonas Ltda.	Shareholder related	Brazil	BRL		31,861,226		9,820,905		30,998,682		10,354,296
86.881.400-4	Envases CMF S.A.	Associate	Chile	CLP		7,271,244		-		8,186,248		-
Foreign	Ser. y Prod. para Bebidas Refrescantes S.R.L.	Shareholder	Argentina	ARS		10,914,693		-		8,587,487		-
Foreign	Leão Alimentos e Bebidas Ltda.	Associate	Brazil	BRL		111,476		-		232,216		-
Foreign	Monster Energy Brasil Com de Bebidas Ltda.	Shareholder related	Brazil	BRL		1,853,481		-		3,811,908		-
76.572.588-7	Coca-Cola del Valle New Ventures S.A.	Associate	Chile	CLP		601,863		-		1,089,592		-
96.891.720-K	Embonor S.A.	Shareholder related	Chile	CLP		589,127		-		589,127		-
Foreign	Alimentos de Soja S.A.U.	Shareholder related	Argentina	ARS		25,555		-		628,842		-
77.526.480-2	Comercializadora Nova Verde	Common shareholder	Chile	CLP		518,015		-		2,198,317		-
Foreign	Monster Energy Company – USA	Shareholder related	Argentina	PYG		2,354,187		-		28,910		-
Foreign	Coca-Cola Company	Shareholder	Paraguay	PYG		1,751,239		-		1,690,858		-
Total						86,499,143		9,820,905		90,248,067		10,354,296

12.3 Transactions:

Taxpayer ID

Company

Relationship

Country

Transaction Description

Currency

Accumulated

at 03.31.2023

Accumulated

at 12.31.2021

ThCh$

96.714.870-9

Coca-Cola de Chile S.A.

Shareholders

Chile

Purchase of concentrate

CLP

46,096,975

198,045,624

96.714.870-9

Coca-Cola de Chile S.A.

Shareholders

Chile

Purchase of advertising services

CLP

6,592,953

96.714.870-9

Coca-Cola de Chile S.A.

Shareholders

Chile

Water source lease

CLP

2,053,979

5,958,076

96.714.870-9

Coca-Cola de Chile S.A.

Shareholders

Chile

Sale of raw materials and others

CLP

1,711,361

9,980,390

96.714.870-9

Coca-Cola de Chile S.A.

Shareholders

Chile

Minimum dividend

CLP

47,262

86.881.400-4

Envases CMF S.A.

Associate

Chile

Purchase of containers

CLP

7,242,659

24,441,192

86.881.400-4

Envases CMF S.A.

Associate

Chile

Purchase of raw materials

CLP

10,372,982

33,637,921

86.881.400-4

Envases CMF S.A.

Associate

Chile

Purchase of services and others

CLP

722,338

2,270,006

86.881.400-4

Envases CMF S.A.

Associate

Chile

Sales of services and others

CLP

16,200

13,914

86.881.400-4

Envases CMF S.A.

Associate

Chile

Purchase of packaging

CLP

3,270,900

9,391,000

86.881.400-4

Envases CMF S.A.

Associate

Chile

Sale of packaging / raw materials

CLP

3,677,068

13,360,534

93.281.000-K

Coca Cola Embonor S.A.

Common shareholder

Chile

Sales of finished products

CLP

21,829,068

79,205,926

93.281.000-K

Coca Cola Embonor S.A.

Common shareholder

Chile

Sales of services and others

CLP

343,982

585,448

93.281.000-K

Coca Cola Embonor S.A.

Common shareholder

Chile

Sale of inputs and materials

CLP

234,966

956,036

96.891.720-K

Embonor S.A.

Shareholder related

Chile

Minimum dividend

CLP

589,127

96.517.310-2

Embotelladora Iquique S.A.

Shareholder related

Chile

Sales of finished products

CLP

2,233,309

5,807,466

89.996.200-1

Envases del Pacífico S.A.

Director related

Chile

Purchase of inputs and materials

CLP

148,720

204,933

94.627.000-8

Parque Arauco S.A

Director related

Chile

Leas of space

CLP

233

101,981

Foreign

Recofarma do Indústrias Amazonas Ltda.

Shareholder related

Brazil

Purchase of concentrate

BRL

233

100,199,500

Foreign

Serv. y Prod. para Bebidas Refrescantes S.R.L.

Shareholder related

Argentina

Purchase of concentrate

ARS

41,213,852

159,807,006

Foreign

Serv. y Prod. para Bebidas Refrescantes S.R.L.

Shareholder related

Argentina

Advertising rights, prizes and others

ARS

3,002,061

Foreign

KAIK Participações

Associate

Brazil

Reimbursement and other purchases

BRL

26,505

96,511

Foreign

Leão Alimentos e Bebidas Ltda.

Associate

Brazil

Purchase of products

BRL

203,572

636,938

Foreign

Sorocaba Refrescos S.A.

Associate

Brazil

Purchase of products

BRL

444,769

419,515

89.862.200-2

Latam Airlines Group S.A.

Director related

Chile

Sale of products

CLP

93,320

76.572.588-7

Coca Cola Del Valle New Ventures SA

Associate

Chile

Sales of services and others

CLP

167

288,264

76.572.588-7

Coca Cola Del Valle New Ventures SA

Associate

Chile

Purchase of services and others

CLP

1,074,246

4,306,419

Foreign

Alimentos de Soja S.A.U.

Shareholder related

Argentina

Payment of commissions and services

ARS

686,206

4,128,865

Foreign

Alimentos de Soja S.A.U.

Shareholder related

Argentina

Purchase of products

ARS

506,999

2,107,354

Foreign

Alimentos de Soja S.A.U.

Shareholder related

Argentina

Servicios de Marketing

ARS

62,278

286,488

Foreign

Trop Frutas do Brasil Ltda.

Associate

Brazil

Purchase of products

BRL

91,171

368,127

77526480-2

Comercializadora Novaverde S.A.

Common shareholder

Chile

Sale of raw materials

CLP

12,421

781,901

77526480-2

Comercializadora Novaverde S.A.

Common shareholder

Chile

Sale of finished products

CLP

4,066,896

12,867,822

77526480-2

Comercializadora Novaverde S.A.

Common shareholder

Chile

Sale of services and others

CLP

330,262

4,512,714

77526480-2

Comercializadora Novaverde S.A.

Common shareholder

Chile

Purchase of finished products

CLP

4,216,857

25,440,668

77526480-2

Comercializadora Novaverde S.A.

Common shareholder

Chile

Advertising

CLP

2,367,626

77526480-2

Comercializadora Novaverde S.A.

Common shareholder

Chile

Cold equipment maintenance

CLP

619,419

77526480-2

Comercializadora Novaverde S.A.

Common shareholder

Chile

Purchase of raw materials

CLP

35,709

952,699

97.036.000-K

Banco Santander Chile.

Director/Manager/Executive

Chile

Purchase of services

CLP

4,395,779

6,776,225

Foreign

Monster Energy Brasil Comercio de Bebidas Ltda

Affiliate

Brazil

Purchase of products

BRL

1,143,018

2,352,550

33-0520613

Monster Energy Company - USA

Affiliate

USA

Purchase of advertising materials

CLP

45,375

76140057-6

Monster Energy Company - CHILE

Subsidiary

Chile

Sale of administrative services

CLP

309,892

76140057-6

Monster Energy Company - CHILE

Subsidiary

Chile

Finished products

CLP

12,732,485

76140057-6

Monster Energy Company - CHILE

Subsidiary

Chile

Promotions 100% Andina

CLP

5,057

76140057-6

Monster Energy Company - CHILE

Subsidiary

Chile

Nielsen service

CLP

10,407

12.4

Salaries and benefits received by key management

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

Description	03.31.2023		03.31.2022
	ThCh$		ThCh$
Executive wages, salaries and benefits		4,373,557		3,595,729
Director allowances		390,000		390,000
Total		4,763,557		3,985,729

13 – CURRENT AND NON-CURRENT EMPLOYEE BENEFITS

Employee benefits are detailed as follows:

Description	03.31.2023		12.31.2022
		ThCh$		ThCh$
Accrued vacation		20,550,611		25,773,244
Participation in profits and bonuses		8,330,886		22,618,562
Severance indemnity		16,409,033		17,409,793
Total		45,290,530		65,801,599

		ThCh$		ThCh$
Current		28,881,497		48,391,806
Non-current		16,409,033		17,409,793
Total		45,290,530		65,801,599

13.1 Severance indemnities

The movements of employee benefits, valued pursuant to Note 2 are detailed as follows:

Movements	03.31.2023			12.31.2022
		ThCh$			ThCh$
Opening balance		17,409,793			14,982,928
Service costs		126,566			1,018,080
Interest costs		235,105			737,566
Actuarial variations		(679,483	)		2,905,020
Benefits paid		(682,948	)		(2,233,801	)
Total		16,409,033			17,409,793

13.1.1 Assumptions

The actuarial assumptions used are detailed as follows:

Assumptions	03.31.2023		12.31.2022
Discount rate		1.71%		1.71%
Expected salary increase rate		2.0%		2.0%
Turnover rate		7.68%		7.68%
Mortality rate		RV-2014		RV-2014
Retirement age of women		60 years		60 years
Retirement age of men		65 years		65 years

13.2 Personnel expenses

Personnel expenses included in the consolidated statement of income are as follows:

Description	03.31.2023		12.31.2022
	ThCh$		ThCh$
Wages and salaries		68,158,198		57,247,940
Employee benefits		17,229,731		13,859,880
Severance benefits		2,011,301		1,444,839
Other personnel expenses		5,448,412		5,628,478
Total		92,847,642		78,181,137

14 – INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD

14.1 Description

Investments in associates are accounted for using the equity method. Investments in associates are detailed as follows:

			Functional	Investment value				Ownership interest
TAXPAYER ID	Name	Country	currency	03.31.2023		12.31.2022		03.31.2023			112.31.2022
86.881.400-4	Envases CMF S.A. (1)	Chile	CLP		24,468,688		23,519,277		50.00	%		50.00	%
Foreign	Leão Alimentos e Bebidas Ltda. (2)	Brazil	BRL		11,481,710		8,460,307		10.26	%		10.26	%
Foreign	Kaik Participações Ltda. (2)	Brazil	BRL		1,253,032		1,293,219		11.32	%		11.32	%
Foreign	SRSA Participações Ltda.	Brazil	BRL		52,031		55,072		40.00	%		40.00	%
Foreign	Sorocaba Refrescos S.A.	Brazil	BRL		22,651,625		26,694,836		40.00	%		40.00	%
Foreign	Trop Frutas do Brasil Ltda. (2)	Brazil	BRL		1,229,956		1,971,055		7.52	%		7.52	%
76.572.588.7	Coca-Cola del Valle New Ventures S.A.	Chile	CLP		30,550,888		30,350,832		35.00	%		35.00	%
Total					91,687,930		92,344,598

(1)

In Envases CMF S.A., regardless of the percentage of ownership interest, it was determined that no controlling interest was held, only a significant influence, given that there was not a majority vote of the Board of Directors to make strategic business decisions.

(2)

In these companies, regardless of the ownership interest, it has been defined that the Company has significant influence, given that it has the right to appoint directors.

Envases CMF S.A.

Chilean entity whose corporate purpose is to manufacture and sell plastic material products and beverage bottling and packaging services. The business relationship is to supply plastic bottles, preforms and caps to Coca-Cola bottlers in Chile.

Leão Alimentos e Bebidas Ltda.

Brazilian entity whose corporate purpose is to manufacture and commercialize food, beverages in general and beverage concentrates. Invest in other companies. The business relationship is to produce non-carbonated products for Coca-Cola bottlers in Brazil.

Kaik Participações Ltda.

Brazilian entity whose corporate purpose is to invest in other companies with its own resources.

SRSA Participações Ltda.

Brazilian entity whose corporate purpose is the purchase and sale of real estate investments and property management, supporting the business of Rio De Janeiro Refrescos Ltda. (Andina Brazil).

Sorocaba Refrescos S.A.

Brazilian entity whose corporate purpose is to manufacture and commercialize food, beverages in general and beverage concentrates, in addition to investing in other companies. It has commercial relationship with Rio de Janeiro Refrescos Ltda. (Andina Brazil).

Trop Frutas do Brasil Ltda.

Brazilian entity whose corporate purpose is to manufacture, commercialize and export natural fruit pulp and coconut water. The business relationship is to produce products for Coca-Cola bottlers in Brazil.

Coca-Cola del Valle New Ventures S.A.

Chilean entity whose corporate purpose is to manufacture, distribute and commercialize all kinds of juices, waters and beverages in general. The business relationship is to produce waters and juices for Coca-Cola bottlers in Chile.

14.2 Movements

The movement of investments in other entities accounted for using the equity method is shown below:

Description	03.31.2023			12.31.2022
	ThCh$			ThCh$
Opening balance		92,344,598			91,489,194
Dividends declared		-			(4,383,645	)
Share in operating income		1,327,440			2,118,728
Other increase (decrease) in investments in associates*		(1,984,108	)		3,120,321
Ending balance		91,687,930			92,344,598

*Mainly due to foreign exchange rates

The main movements are explained below:

•

Dividends declared in 2022 correspond to Envases CMF S.A.

14.3 Reconciliation of share of profit in investments in associates:

Description	03.31.2023			12.31.2022
	ThCh$			ThCh$
Share in operating income		1,327,440			(314,491	)
Unrealized earnings from product inventory acquired from associates and not sold at the end of the period, which is presented as a discount in the respective asset account (containers and / or inventory)		(257,179	)		(198,507	)
Income statement balance		1,070,261			(512,998	)

14.4 Summary financial information of associates:

The tables below reflect the amounts presented in the financial statements of the relevant associates and not the Company's share of those amounts.

At March 31, 2023	Envases CMF S.A.		Sorocaba Refrescos S.A.		Kaik Participações Ltda.		SRSA Participações Ltda.		Leão Alimentos e Bebidas Ltda.			Trop Frutas do Brasil Ltda.			Coca-Cola del Valle New Ventures S.A.
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$			ThCh$			ThCh$
Short term assets		55,983,999		28,490,051		196,484		21,223		64,967,476			17,896,955			24,300,949
Long term assets		54,593,968		85,532,606		10,873,020		300,309		51,990,864			25,448,151			73,547,555
Total assets		110,577,968		114,022,657		11,069,504		321,532		116,958,340			43,345,106			97,848,504
Short term liabilities		44,748,273		16,309,473		-		191,455		9,151,736			11,696,092			7,935,677
Long term liabilities		16,892,319		41,754,449		29		-		11,355,801			11,394,134			2,624,874
Total liabilities		61,640,592		58,063,922		29		191,455		20,507,537			23,090,226			10,560,551
Total Equity		48,937,376		55,958,735		11,069,475		130,077		96,450,803			20,254,880			87,287,953
Total revenue from ordinary activities		28,271,027		15,697,117		145,927		126,966		8,509,783			7,550,516			5,057,426
Net income before taxes		2,601,610		-5,043,840		145,927		126,966		(974,528	)		(925,220	)		-302,974
Net income after taxes		1,898,821		928,423		145,927		126,966		(1,100,263	)		(911,353	)		1,237
Other comprehensive income		-		995,463		-		-		71,112			222,244			-
Total comprehensive income		-		1,923,886		145,927		126,966		(1,029,151	)		(689,109	)		-
Reporting date (See Note 2.3)		03.31.2023		02.28.2023		02.28.2023		02.28.2023		02.28.2023			02.28.2023			02.28.2023

At December 31, 2022	Envases CMF S.A.		Sorocaba Refrescos S.A.		Kaik Participações Ltda.		SRSA Participações Ltda.		Leão Alimentos e Bebidas Ltda.		Trop Frutas do Brasil Ltda.			Coca-Cola del Valle New Ventures S,A,
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$			ThCh$
Short term assets		63,615,517		41,997,646		-		22,376		77,547,906		22,235,713			26,927,496
Long term assets		52,964,004		89,524,823		11,424,515		317,159		54,195,351		27,128,282			75,247,746
Total assets		116,579,521		131,522,469		11,424,515		339,535		131,743,257		49,363,995			102,175,242
Short term liabilities		45,222,022		21,366,336		-		201,853		16,269,385		14,693,964			9,038,769
Long term liabilities		24,318,944		45,013,681		31		-		11,698,126		12,270,207			5,480,067
Total liabilities		69,540,966		66,380,017		31		201,853		27,967,511		26,964,171			14,518,836
Total Equity		47,038,555		65,142,452		11,424,484		137,682		103,775,746		22,630,444			87,656,406
Total revenue from ordinary activities		97,834,148		-741		782,772		134,401		65,797,238		45,104,125			25,249,336
Net income before taxes		6,640,224		478,458		782,772		134,401		3,804,172		(5,105,685	)		(896,914	)
Net income after taxes		5,517,062		243,170		782,772		134,401		1,427,601		(5,067,707	)		163,561
Other comprehensive income		-		9,680,320		-		-		1,522		275,534			-
Total comprehensive income		5,517,062		9,923,490		782,772		134,401		1,429,123		(4,792,173	)		163,561
Reporting date (See Note 2.3)		12.31.2022		11.30.2022		11.30.2022		11.30.2022		11.30.2022		11.30.2022			12.31.2022

15 – INTANGIBLE ASSETS OTHER THAN GOODWILL

Intangible assets other than goodwill are detailed as follows:

	March 31, 2023							December 31, 2022
			Accumulated							Accumulated
Description	Gross value		Amortization / Impairment			Net value		Gross value		Amortization / Impairment			Net value
	ThCh$		ThCh$			ThCh$		ThCh$		ThCh$			ThCh$
Distribution rights (1)		627,102,853		(1,451,000	)		625,651,853		645,684,416		(1,451,000	)		644,233,416
Software		56,911,601		(36,805,837	)		20,105,764		56,968,738		(36,205,387	)		20,763,351
Water rights		479,825		(40,723	)		439,102		479,825		(40,723	)		439,102
Trademarks indefinite useful life (2)		5,445,309		-			5,445,309		5,741,054		-			5,741,054
Trademarks definite useful life		1,297,378		(750,361	)		547,017		1,297,378		(703,388	)		593,990
Others		482,173		(474,197	)		7,976		507,928		(499,953	)		7,975
Total		691,719,139		(39,522,118	)		652,197,021		710,679,339		(38,900,451	)		671,778,888

(1)

Correspond to brands, water rights and distribution rights. Distribution rights are contractual rights to produce and distribute Coca-Cola products in certain parts of Argentina, Brazil, Chile and Paraguay. Distribution rights result from the valuation process at fair value of the assets and liabilities of the companies acquired in business combinations. Production and distribution contracts are renewable for periods of 5 years with Coca-Cola. The nature of the business and renewals that Coca-Cola has permanently done on these rights, allow qualifying them as indefinite contracts.

(2)

On September 21, 2021 Coca-Cola Andina together with Coca-Cola Femsa, acquired the Brazilian beer brand Therezópolis for BRL 70 million. Each bottler bought 50% of the brand. This transaction is part of the company's long-term strategy to complement its beer portfolio in Brazil. The transaction was completed and approved by CADE (Brazilian Administrative Council of Economic Defense). In September, 2021 Andina recorded an intangible asset under the Therezópolis brand for BRL 35 million with an indefinite useful life.

Distribution rights together with the assets that are part of the cash-generating units, are annually subjected to the impairment test. Such distribution rights have an indefinite useful life, are not subject to amortization. Rights in Chile related to AdeS were provisioned for impairment pursuant to the annual tests performed.

Distribution rights	03.31.2023		12.31.2022
		ThCh$		ThCh$
Chile (excluding Metropolitan Region, Rancagua and San Antonio)		302,814,149		302,814,149
Brazil (Rio de Janeiro, Espirito Santo, Ribeirão Preto and Investments in Sorocaba and Leão Alimentos y Bebidas Ltda.)		157,136,072		165,670,430
Paraguay		162,685,478		172,548,023
Argentina (North and South)		3,016,154		3,200,814
Total		625,651,853		644,233,416

The movement and balances of identifiable intangible assets are detailed as follows:

	March 31, 2023
Description	Distribution rights			Software			Water rights		Trademarks indefinite useful life			Trademarks definite useful life			Others		Total
	ThCh$			ThCh$			ThCh$		ThCh$			ThCh$			ThCh$		ThCh$
Opening balance		644,233,416			20,763,351			439,102		5,741,054			593,990			7,975		671,778,888
Additions		-			1,265,072			-		-			-			-		1,265,072
Amortization /Impairment		-			(1,269,401	)		-		-			(46,973	)		-		(1,316,374	)
Other increases (decreases) (1)		(18,581,563	)		(653,258	)		-		(295,745	)		-			-		(19,530,566	)
Ending balance		625,651,853			20,105,764			439,102		5,445,309			547,017			7,975		652,197,020

	December 31, 2022
Description	Distribution rights		Software			Water rights		Trademarks indefinite useful life		Trademarks definite useful life			Others		Total
	ThCh$		ThCh$			ThCh$		ThCh$		ThCh$			ThCh$		ThCh$
Opening balance		640,056,747		13,064,962			422,221		5,297,760		781,878			7,975		659,631,543
Additions		-		12,020,412			16,881		-					-		12,037,293
Amortization /Impairment		-		(4,208,798	)		-		-		(187,888	)		-		(4,396,686	)
Other increases (decreases) (1)		4,176,669		(113,225	)		-		443,294		-			-		4,506,738
Ending balance		644,233,416		20,763,351			439,102		5,741,054		593,990			7,975		671,778,888

(1)

Mainly corresponds to restatement due to the effects of translation of distribution rights of foreign subsidiaries.

16 – GOODWILL

Movement in Goodwill is detailed as follows:

Cash Generating Unit	01.01.2023		Foreign currency translation differences where functional currency is different from presentation currency			03.31.2023
	ThCh$		ThCh$			ThCh$
Chilean operation		8,503,023		-			8,503,023
Brazilian operation		66,941,508		(3,395,846	)		63,545,662
Argentine operation		46,254,831		(2,766,818	)		43,488,013
Paraguayan operation		7,324,560		(418,660	)		6,905,900
Total		129,023,922		(6,581,324	)		122,442,598

Cash Generating Unit	01.01.2022		Foreign currency translation differences where functional currency is different from presentation currency			12.31.2022
	ThCh$		ThCh$			ThCh$
Chilean operation		8,503,023		-			8,503,023
Brazilian operation		61,851,449		5,090,059			66,941,508
Argentine operation		39,976,392		6,278,439			46,254,831
Paraguayan operation		7,712,036		(387,476	)		7,324,560
Total		118,042,900		10,981,022			129,023,922

17 – OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES

Liabilities are detailed as follows:

	Balance
	Current				Non-current
	03.31.2023		12.31.2022		03.31.2023		12.31.2022
	ThCh$		ThCh$		ThCh$		ThCh$
Bank loans (Note 17.1.1 - 3)		716,630		688,800		13,241,891		13,366,211
Bonds payable, net ⁽¹⁾ (Note 17.2)		307,086,095		340,767,980		748,652,151		763,368,160
Bottle guaranty deposits		16,162,632		16,427,144		-		-
Derivative contract liabilities (Note 17.3)		2,398,489		2,317,577		61,151,441		112,175,058
Lease liabilities (Note 17.4.1 - 2)		5,520,684		7,100,579		14,212,612		15,892,629
Total		331,884,530		367,302,080		837,258,095		904,802,058

⁽¹⁾ Amounts net of issuance expenses and discounts related to issuance.

The fair value of financial assets and liabilities is presented below:

	Book value		Fair value		Book value		Fair value
Current	03.31.2023		03.31.2023		12.31.2022		12.31.2022
	ThCh$		ThCh$		ThCh$		ThCh$
Cash and cash equivalent (2)		259,267,836		259,267,836		291,681,987		291,681,987
Financial assets at fair value (1)		152,052,819		152,052,819		170,206,554		170,206,554
Trade debtors and other accounts receivable (2)		223,476,663		223,476,663		279,770,286		279,770,286
Accounts receivable related companies (2)		12,712,063		12,712,063		15,062,167		15,062,167
Bank liabilities (2)		716,630		714,451		688,800		107,114
Bonds payable (2)		307,086,095		241,043,714		340,767,980		339,666,507
Bottle guaranty deposits (2)		16,162,632		16,162,632		16,427,144		16,427,144
Forward contracts liabilities (see Note 22) (1)		2,398,489		2,398,489		2,317,577		2,317,577
Leasing agreements (2)		5,520,684		5,520,684		7,100,579		7,100,579
Accounts payable (2)		308,312,461		308,312,461		384,801,630		384,801,630
Accounts payable related companies (2)		86,499,143		86,499,143		90,248,067		90,248,067

Non-current		03.31.2023		03.31.2023		12.31.2022		12.31.2022
		ThCh$		ThCh$		ThCh$		ThCh$
Financial assets at fair value (1)		82,077,642		82,077,642		75,297,737		75,297,737
Non-current accounts receivable (2)		603,366		603,366		539,920		539,920
Accounts receivable related companies (2)		109,318		109,318		109,318		109,318
Bank liabilities (2)		13,241,891		13,958,521		13,366,211		13,921,569
Bonds payable (2)		748,652,151		715,403,694		763,368,160		729,602,210
Leasing agreements (2)		14,212,612		14,212,612		15,892,629		15,892,629
Non-current accounts payable (2)		2,534,462		2,534,462		3,015,284		3,015,284
Derivative contracts liabilities (see Note 22) (1)		61,151,441		61,151,441		112,175,058		112,175,058
Accounts payable related companies (2)		9,820,905		9,820,905		10,354,296		10,354,296

(1)

Fair values are based on discounted cash flows using market discount rates at the close of the six-month and one-year period and are classified as Level 2 of the fair value measurement hierarchies.

(2)

Financial instruments such as: Cash and Cash Equivalents, Trade debtors and Other Accounts Receivable, Accounts Receivable related companies, Bottle Guarantee Deposits Trade Accounts Payable, and Other Accounts Payable related companies present a fair value that approximates their carrying value, considering the nature and term of the obligation. The business model is to maintain the financial instrument in order to collect/pay contractual cash flows, in accordance with the terms of the contract, where cash flows are received/cancelled on specific dates that exclusively constitute payments of principal plus interest on that principal. These instruments are revalued at amortized cost.

17.1 Bank liabilities

17.1.1 Bank liabilities, current

	Maturity														Total
	Indebted Entity	Creditor Entity					Type of	Nominal			Up to		90 days to		At		At
Taxpayer ID	Name	Country	Taxpayer ID	Name	Country	Currency	Amortization	Rate			90 days		1 year		03.31.2023		12.31.2022
											ThCh$		ThCh$		ThCh$		ThCh$
96.705.990-0	Envases Central S.A.	Chile	97.006.000-6	Banco Estado	Chile	CLP	Semiannually		2.00	%		13,111		-		13,111		28,683
77.427.659-9	Re-Ciclar S.A.	Chile	97.018.000-1	Scotiabank Chile S.A.	Chile	CLP	Semiannually		9.49	%		-		74,731		74,731		53,350
77.427.659-9	Re-Ciclar S.A.	Chile	97.018.000-1	Scotiabank Chile S.A.	Chile	UF	Semiannually		3.32	%				13,994		13,994		-
91.144.000-8	Embotelladora Andina S.A.	Chile	97.023.000-9	Itaú Corpbanca	Chile	UF	At maturity		0.18	%		21,488		-		21,488		21,207
91.144.000-8	Embotelladora Andina S.A.	Chile	97.023.000-9	Itaú Corpbanca	Chile	UF	At maturity		0.18	%		593,306		-		593,306		585,560
Total																716,630		688,800

17.1.2 Bank liabilities, non-current

Maturity

Indebted entity

Creditor entity

Type of

Nominal

1 year up to

More than 2

More than 3

More than 4

More than 5

Taxpayer ID

Name

Country

Taxpayer ID

Name

Country

Currency

Amortization

Rate

2 years

Up to 3 years

Up to 4 years

Up to 5 years

years

03.31.2023

ThCh$

96.705.990-0

Envases Central S.A.

Chile

97.006.000-6

Banco Estado

Chile

CLP

Semiannually

2.00

4,000,000

77.427.659-9

Re-Ciclar S.A.

Chile

97.018.000-1

Scotiabank Chile S.A.

Chile

CLP

Semiannually

9.49

4,500,000

77.427.659-9

Re-Ciclar S.A.

Chile

97.018.000-1

Scotiabank Chile S.A.

Chile

Semiannually

3.32

4,741,891

Total

13,241,891

17.1.3 Bank liabilities, non-current previous year

Maturity

Indebted entity

Creditor entity

Type of

Nominal

1 year up to

More than 2

More than 3

More than 4

More than 5

Taxpayer ID

Name

Country

Taxpayer ID

Name

Country

Currency

Amortization

Rate

2 years

Up to 3 years

Up to 4 years

Up to 5 years

years

12.31.2022

96.705.990-0

Envases Central S.A.

Chile

97.006.000-6

Banco Estado

Chile

CLP

Semiannually

2.00

4,000,000

77.427.659-9

Re-Ciclar S.A.

Chile

97.018.000-1

Scotiabank Chile S.A.

Chile

CLP

Semiannually

9.49

4,500,000

77.427.659-9

Re-Ciclar S.A.

Chile

97.018.000-1

Scotiabank Chile S.A.

Chile

Semiannually

3.32

4,866,211

Total

13,366,211

17.1.4 Current and non-current bank obligations “Restrictions”

Bank obligations are not subject to restrictions for the reported periods.

17.2 Bond obligations

	Current				Non-current				Total
Composition of bonds payable	03.31.2023		12.31.2022		03.31.2023		12.31.2022		03.31.2023		12.31.2022
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Bonds face value ¹		307,667,013		341,478,129		754,492,008		769,765,783		1,062,159,021		1,104,136,139

17.2.1 Current and non-current balances

Bonds payable correspond to bonds in UF issued by the parent company on the Chilean market and bonds in U.S. dollars issued by the Parent Company on the international market. A detail of these instruments is presented below:

								Current		Non-current
	Series	Current nominal amount	Adjustment unit	Interest rate		Final maturity	Interest payment	03.31.2023	12.31.2022	03.31.2023	12.31.2022
Bonds								ThCh$	ThCh$	ThCh$	ThCh$
CMF Registration 254 06.13.2001	B	1,253,683	UF	6.50	%	12.01.2026	Semiannually	11,279,285	10,513,470	29,176,388	28,795,438
CMF Registration 641 08.23.2010	C	1,227,273	UF	4.00	%	08.15.2031	Semiannually	5,055,357	5,427,888	36,384,014	38,302,888
CMF Registration 760 08.20.2013	D	4,000,000	UF	3.80	%	08.16.2034	Semiannually	654,756	1,967,995	142,301,920	140,443,920
CMF Registration 760 04.02.2014	E	3,000,000	UF	3.75	%	03.01.2035	Semiannually	330,443	1,304,513	106,726,450	105,332,951
CMF Registration 912 10.10.2018	F	5,700,000	UF	2.83	%	09.25.2039	Semiannually	91,932	1,491,144	202,780,236	200,132,586
Bonds USA 2023 10.01.2013	-	365,000,000	USD	5.00	%	10.01.2023	Semiannually	288,460,021	316,293,761	-	-
Bonds USA 2050 01.01.2020	-	300,000,000	USD	3.95	%	01.21.2050	Semiannually	1,795,219	4,479,358	237,123,000	256,758,000
							Total	307,667,013	341,478,129	754,492,008	769,765,783

¹ Gross amounts do not include issuance expenses and discounts related to issuance.

17.2.2 Non-current maturities

			Year of maturity								Total Non- current
	Series		More than 1 up to 2		More than 2 up to 3		More than 3 up to 4		More than 5		03.31.2023
			ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
CMF Registration 254 06.13.2001		B		11,122,505		11,845,466		6,208,416		-		29,176,387
CMF Registration 641 08.23.2010		C		4,851,202		4,851,202		4,851,202		21,830,408		36,384,014
CMF Registration 760 08.20.2013		D		-		-		-		142,301,920		142,301,920
CMF Registration 760 04.02.2014		E		-		-		-		106,726,451		106,726,451
CMF Registration 912 10.10.2018		F		-		-		-		202,780,236		202,780,236
Bonds USA 2050		-		-		-		-		237,123,000		237,123,000
Total				15,973,707		16,696,668		11,059,618		710,762,015		754,492,008

17.2.3 Market rating

The bonds issued on the Chilean market had the following rating:

AA+	:	ICR Compañía Clasificadora de Riesgo Ltda. rating
AA+	:	Fitch Chile Clasificadora de Riesgo Limitada rating

The rating of bonds issued on the international market had the following rating:

BBB	:	Standard&Poors Global Ratings
BBB+	:	Fitch Ratings Inc.

17.2.4 Restrictions

17.2.4.1 Restrictions regarding bonds placed abroad.

Obligations with bonds placed abroad are not affected by financial restrictions for the periods reported.

17.2.4.2 Restrictions regarding bonds placed in the local market.

The following financial information was used for calculating restrictions:

	03.31.2023
	ThCh$
Average net financial debt last 4 quarters		615,541,321
Net financial debt		580,317,840
Unencumbered assets		2,577,479,713
Total unsecured liabilities		1,666,623,171
EBITDA LTM		469,114,931
Net financial expenses LTM		23,497,106

Restrictions on the issuance of bonds for a fixed amount registered under number 254, series B1 and B2.

Maintain an Indebtedness Level not greater than three point five times the EBITDA. For these purposes, "Indebtedness Level" will be considered as the ratio between /a/ the average over the last four Quarters of the Consolidated Net Financial Liabilities, and /b/ the accumulated EBITDA in the period of twelve consecutive months ending at the closing of the latest "Consolidated Financial Statements of Income by Function".

“Consolidated Net Financial Liabilities” will be considered as the result of : /i/ "Other Financial Liabilities, Current", plus /ii/ "Other Financial Liabilities, Non-Current", minus /iii/ the sum of "Cash and Cash Equivalents"; plus "Other Financial Assets, Current"; plus "Other Financial Assets, Non-Current" (to the extent that they correspond to the balances of assets for derivative financial instruments, taken to hedge exchange rate and/or interest rate risk of financial liabilities);

“EBITDA” will be considered as the addition of the following accounts of the "Consolidated Financial Statements of Income by Function" contained in the Issuer's Consolidated Financial Statements: "Revenues from Ordinary Activities", "Cost of Sales", "Distribution Costs", "Administrative Expenses" and "Other Expenses, by function", discounting the value of "Depreciation" and "Amortization for the Year" presented in the Notes to the Issuer's Consolidated Financial Statements.

As of March 31, 2023, this ratio was 1.31 times.

Maintain, and in no manner lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” (Región Metropolitana) as a territory in Chile in which we have been authorized by The Coca-Cola Company for the development, production, sale and distribution of products and brands of the licensor, in accordance to the respective bottler or license agreement, renewable from time to time.

Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of this date is franchised by TCCC to the Company for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer's Adjusted Consolidated Operating Cash Flow.

Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities.

Unsecured consolidated liabilities payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.

Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.

As of March 31, 2023, this ratio is 1.55 times.

Restrictions to bond lines registered in the Securities Registered under number 641, series C

“Consolidated Net Financial Liabilities" will be considered as the result of: /i/ "Other Financial Liabilities, Current", plus /ii/ "Other Financial Liabilities, Non-Current", minus /iii/ the sum of "Cash and Cash Equivalents"; plus "Other Financial Assets, Current"; plus "Other Financial Assets, Non-Current" (to the extent that they correspond to the balances of assets for derivative financial instruments, taken to hedge exchange rate and/or interest rate risk of financial liabilities);

"EBITDA" will be considered as the addition of the following accounts of the "Consolidated Financial Statements of Income by Function" contained in the Issuer's Consolidated Financial Statements: "Revenues from Ordinary Activities", "Cost of Sales", "Distribution Costs", "Administrative Expenses" and "Other Expenses, by function", discounting the value of "Depreciation" and "Amortization for the Year" presented in the Notes to the Issuer's Consolidated Financial Statements.

As of March 31, 2023, this ratio was 1.31 times.

Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities.

Unencumbered assets refer to the assets that are the property of the issuer; classified under Total Assets of the Issuer’s Financial Statements; and that are free of any pledge, mortgage or other liens constituted in favor of third parties, less "Other Current Financial Assets" and "Other Non-Current Financial Assets" of the Issuer’s Financial Statements (to the extent they correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities).

Unsecured total liabilities correspond to liabilities from Total Current Liabilities and Total Non-Current Liabilities of Issuer’s Financial Statement which do not benefit from preferences or privileges, less "Other Current Financial Assets" and "Other Non-Current Financial Assets" of the Issuer’s Financial Statements (to the extent they correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities).

As of March 31, 2023, this ratio was 1.55 times.

Maintain a level of "Net Financial Coverage" greater than 3 times in its quarterly financial statements. Net financial coverage means the ratio between the issuer's EBITDA of the last 12 months and the issuer's Net Financial Expenses in the last 12 months. Net Financial Expenses will be regarded as the difference between the absolute value of interest expense associated with the issuer's financial debt account accounted for under "Financial Costs"; and interest income associated with the issuer's cash accounted for under the Financial Income account. However, this restriction shall be deemed to have been breached where the mentioned level of net financial coverage is lower than the level previously indicated during two consecutive quarters.

As of March 31, 2023, Net Financial Coverage was 19.96 times.

Restrictions to bond lines registered in the Securities Registrar under number 760, series D and E.

“Consolidated Net Financial Liabilities" will be considered as the result of : /i/ "Other Financial Liabilities, Current", plus /ii/ "Other Financial Liabilities, Non-Current", minus /iii/ the sum of "Cash and Cash Equivalents"; plus "Other Financial Assets, Current"; plus "Other Financial Assets, Non-Current" (to the extent that they correspond to the balances of assets for derivative financial instruments, taken to hedge exchange rate and/or interest rate risk of financial liabilities);

“EBITDA" will be considered as the addition of the following accounts of the "Consolidated Financial Statements of Income by Function" contained in the Issuer's Consolidated Financial Statements: "Revenues from Ordinary Activities", "Cost of Sales", "Distribution Costs", "Administrative Expenses" and "Other Expenses, by function", discounting the value of "Depreciation" and "Amortization for the Year" presented in the Notes to the Issuer's Consolidated Financial Statements.

As of March 31, 2023, this ratio was 1.31 times.

Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities payable.

Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.

The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.

As of March 31, 2023, this ratio was 1.55 times.

Maintain, and in no manner, lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” as a territory franchised to the Issuer in Chile by The Coca-Cola Company, hereinafter also referred to as "TCCC" or the "Licensor" for the development, production, sale and distribution of products and brands of said licensor, in accordance to the respective bottler or license agreement, renewable from time to time. Losing said territory, means the non-renewal, early termination or cancellation of this license agreement by TCCC, for the geographical area today called "Metropolitan Region". This reason shall not apply if, as a result of the loss, sale, transfer or disposition, of that licensed territory is purchased or acquired by a subsidiary or an entity that consolidates in terms of accounting with the Issuer.

Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of these instruments is franchised by TCCC to the Issuer for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer's Adjusted Consolidated Operating Cash Flow of the audited period immediately before the moment of loss, sale, assignment or transfer. For these purposes, the term "Adjusted Consolidated Operating Cash Flow" shall mean the addition of the following accounting accounts of the Issuer's Consolidated Statement of Financial Position: (i) "Gross Profit" which includes regular activities and cost of sales; less (ii) "Distribution Costs"; less (iii) "Administrative Expenses"; plus (iv) "Participation in profits (losses) of associates that are accounted for using the equity method"; plus (v) "Depreciation"; plus (vi) "Intangibles Amortization".

Restrictions to bond lines registered in the Securities Registrar under number 912, series F.

"Consolidated Net Financial Liabilities" will be considered as the result of : /i/ "Other Financial Liabilities, Current", plus /ii/ "Other Financial Liabilities, Non-Current", minus /iii/ the sum of "Cash and Cash Equivalents"; plus "Other Financial Assets, Current"; plus "Other Financial Assets, Non-Current" (to the extent that they correspond to the balances of assets for derivative financial instruments, taken to hedge exchange rate and/or interest rate risk of financial liabilities);

"EBITDA" will be considered as the sum of the following accounts of the "Consolidated Financial Statements of Income by Function" contained in the Issuer's Consolidated Financial Statements: "Revenues from Ordinary Activities", "Cost of Sales", "Distribution Costs", "Administrative Expenses" and "Other Expenses, by function", discounting the value of "Depreciation" and "Amortization for the Year" presented in the Notes to the Issuer's Consolidated Financial Statements.

As of March 31, 2023, this ratio was 1.31 times.

Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities payable. Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position. The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.

As of March 31, 2023, this ratio was 1.55 times.

Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of local bonds Series C, D and E is franchised by TCCC to the Issuer for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer's Adjusted Consolidated Operating Cash Flow of the audited period immediately before the moment of loss, sale, assignment or transfer. For these purposes, the term "Adjusted Consolidated Operating Cash Flow" shall mean the addition of the following accounting accounts of the Issuer's Consolidated Statement of Financial Position: (i) "Gross Profit" which includes regular activities and cost of sales; less (ii) "Distribution Costs"; less (iii) "Administrative Expenses"; plus (iv) "Participation in profits (losses) of associates that are accounted for using the equity method"; plus (v) "Depreciation"; plus (vi) "Intangibles Amortization".

As of March 31, 2023, the Company complies with all financial covenants.

17.3 Derivative contract obligations

Please see details in Note 22.

17.4 Liabilities for leasing agreements

17.4.1 Current liabilities for leasing agreements

										Maturity				Total
Indebted entity		Creditor entity				Amortization	Nominal			Up to		90 days up to		at		at
Name	Country	Taxpayer ID	Name	Country	Currency	Type	Rate			90 days		1 year		03.31.2023		12.31.2022
										ThCh$		ThCh$		ThCh$		ThCh$
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Cogeração - Light ESCO	Brazil	BRL	Monthly		12.28	%		249,594		796,214		1,045,808		1,069,428
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Tetra Pack	Brazil	BRL	Monthly		7.39	%		28,491		88,692		117,183		121,291
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Real estate	Brazil	BRL	Monthly		8.10	%		61,249		121,512		182,761		155,613
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Leão Alimentos e Bebidas Ltda.	Brazil	BRL	Monthly		3.50	%		70,985		211,316		282,301		299,362
Embotelladora del Atlántico S.A.	Argentina	Foreign	Tetra Pak SRL	Argentina	USD	Monthly		12.00	%		98,798		273,387		372,185		497,308
Embotelladora del Atlántico S.A.	Argentina	Foreign	Banco Comafi	Argentina	USD	Monthly		12.00	%		-		-				-
Embotelladora del Atlántico S.A.	Argentina	Foreign	Real estate	Argentina	ARS	Monthly		50.00	%		245,058		119,368		364,426		622,574
Embotelladora del Atlántico S.A.	Argentina	Foreign	Systems	Argentina	USD	Monthly		12.00	%		24,652		49,307		73,959		123,253
VJ S.A.	Chile	93.899.000-k	De Lage Landen Chile S.A.	Chile	USD	Linear		12.16	%		-		-		-		588,820
Vital Aguas S.A.	Chile	76.389.720-6	Coca-Cola del Valle New Ventures S.A.	Chile	CLP	Linear		7.50	%		-		-		-		998,501
Envases Central S.A.	Chile	96.705.990-0	Coca-Cola del Valle New Ventures S.A.	Chile	CLP	Linear		5.56	%		-		-		-		602,887
VJ S.A.	Chile	93.899.000-k	De Lage Landen Chile S.A.	Chile	USD	Linear		8.17	%		133,536		409,517		543,053		-
Vital Aguas S.A.	Chile	76.389.720-6	Coca-Cola del Valle New Ventures S.A.	Chile	CLP	Linear		8.17	%		269,750		466,709		736,459		-
Transportes Polar S.A.	Chile	96.928.520-7	Cons. Inmob. e Inversiones Limitada	Chile	UF	Monthly		2.89	%		-		30,661		30,661		118,883
Transportes Andina Refrescos Ltda	Chile	78.861.790-9	Arrendamiento De Maquinaria SPA	Chile	UF	Monthly		1.00	%		78,073		233,237		311,310		309,440
Transportes Andina Refrescos Ltda	Chile	78.861.790-9	Comercializadora Novaverde Limitada	Chile	UF	Monthly		0.08	%		72,069		-		72,069		177,802
Transportes Andina Refrescos Ltda	Chile	78.861.790-9	Jungheinrich Rentalift SPA	Chile	UF	Monthly		0.24	%		235,455		661,120		896,575		932,903
Red de Transportes Comerciales S.A.	Chile	76.276.604-3	Inmobiliaria Ilog Avanza Park	Chile	UF	Monthly		0.21	%		121,843		370,091		491,934		482,514
													Total		5,520,684		7,100,579

The Company maintains leases on forklifts, vehicles, real estate and machinery. These leases have an average lifespan of between one and eight years without including a renewal option in the contracts.

17.4.2 Non-current liabilities for leasing agreements

							Maturity
Indebted entity		Creditor entity				Amortization	Nominal		1 year up to	2 years up to	3 years up to	4 years up to	More than	at
Name	Country	Taxpayer ID	Name	Country	Currency	Type	Rate		2 years	3 years	4 years	5 years	5 years	03.31.2023
									ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$
Rio de Janeiro Refrescos Ltda.	Brasil	Foreign	Cogeração - Light ESCO	Brazil	BRL	Monthly	12.28	%	1,181,763	1,335,392	1,508,993	1,705,162	1,926,834	7,658,144
Rio de Janeiro Refrescos Ltda.	Brasil	Foreign	Tetra Pack	Brazil	BRL	Monthly	7.39	%	126,147	135,797	146,185	157,369	348,404	913,902
Rio de Janeiro Refrescos Ltda.	Brasil	Foreign	Real estate	Brazil	BRL	Monthly	8.10	%	48,025	5,559	0	0	0	53,584
Rio de Janeiro Refrescos Ltda.	Brasil	Foreign	Leao Alimentos e Bebidas Ltda.	Brazil	BRL	Monthly	3.50	%	272,197	199,963	29,458	21,069	0	522,687
Embotelladora del Atlántico S.A.	Argentina	Foreign	Tetra Pak SRL	Argentina	USD	Monthly	12.00	%	-	729,032	-	496,663	375,159	1,600,854
Embotelladora del Atlántico S.A.	Argentina	Foreign	Real estate	Argentina	ARS	Monthly	50.00	%	-	78,668	-	-	-	78,668
VJ S.A.	Chile	Foreign	De Lage Landen Chile S.A.	Chile	USD	Monthly	8.17	%	567,354	-	-	-	-	567,354
Transportes Andina Refrescos Ltda	Chile	85.275.700-0	Arrendamiento De Maquinaria SPA	Chile	UF	Monthly	1.00	%	-	283,078	-	-	-	283,078
Transportes Polar S.A.	Chile	76.413.243-2	Cons. Inmob. e Inversiones Limitada	Chile	UF	Monthly	2.89	%	-	167,317	-	-	-	167,317
Red de Transportes Comerciales S.A.	Chile	76.276.604-3	Inmobiliaria Ilog Avanza Park	Chile	UF	Monthly	0.21	%	-	718,103	-	-	-	718,103
Transportes Andina Refrescos Ltda	Chile	78.861.790-9	Jungheinrich Rentalift SPA	Chile	UF	Monthly	0.24	%	-	1,648,921	-	-	-	1,648,921
													Total	14,212,612

17.4.3 Non-current liabilities for leasing agreements (previous year)

							Maturity
Indebted entity		Creditor entity				Type of	Nominal		1 year up to	2 years up to	3 years up to	4 years up to	More than	at
Name	Country	Taxpayer ID	Name	Country	Currency	Amortization	Rate		2 years	3 years	4 years	5 years	5 years	12.31.2022
									ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Cogeração - Light ESCO	Brazil	BRL	Monthly	12.28	%	1,208,453	1,365,552	1,543,074	1,743,674	2,501,730	8,362,483
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Tetra Pack\|	Brazil	BRL	Monthly	7.39	%	130,569	140,558	151,311	162,886	409,959	995,283
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Real estate	Brazil	BRL	Monthly	8.10	%	57,105	8,702	-	-	-	65,807
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Leao Alimentos e Bebidas Ltda.	Brazil	BRL	Monthly	3.50	%	292,445	270,586	31,538	29,618	-	624,187
Embotelladora del Atlántico S.A.	Argentina	Foreign	Tetra Pak SRL	Argentina	USD	Monthly	12.00	%	-	842,297	-	513,737	335,293	1,691,327
Embotelladora del Atlántico S.A.	Argentina	Foreign	Real estate	Argentina	ARS	Monthly	50.00	%	-	136,139	-	-	-	136,139
VJ S.A.	Chile	Foreign	De Lage Landen Chile S.A	Chile	USD	Monthly	12.16	%	769,982		-	-	-	769,982
Transportes Andina Refrescos Ltda	Chile	85.275.700-0	Arrendamiento De Maquinaria SPA	Chile	UF	Monthly	1.00	%	-	355,952	-	-	-	355,952
Transportes Polar S.A.	Chile	76.413.243-2	Cons. Inmob. e Inversiones Limitada	Chile	UF	Monthly	2.89	%	-	195,393	-	-	-	195,393
Red de Transportes Comerciales Ltda	Chile	76.276.604-3	Inmobiliaria Ilog Avanza Park	Chile	UF	Monthly	0.21	%	-	831,235	-	-	-	831,235
Transportes Andina Refrescos Ltda	Chile	78.861.790-9	Jungheinrich Rentalift SPA	Chile	UF	Monthly	0.24	%	-	1,864,841	-	-	-	1,864,841
													Total	15,892,629

Leasing agreement obligations are not subject to financial restrictions for the reported periods.

18 – TRADE AND OTHER ACCOUNTS PAYABLE

Trade and other accounts payable are detailed as follows:

Classification	03.31.2023		12.31.2022
	ThCh$		ThCh$
Current		308,312,461		384,801,630
Non-current		2,534,462		3,015,284
Total		310,846,923		387,816,914

Item	03.31.2023		12.31.2022
	ThCh$		ThCh$
Trade accounts payable		240,303,591		298,298,731
Withholding tax		43,134,877		60,738,656
Others		27,408,455		28,779,527
Total		310,846,923		387,816,914

19 – OTHER PROVISIONS, CURRENT AND NON-CURRENT

19.1 Balances

The composition of provisions is as follows:

Description	03.31.2023		12.31.2022
	ThCh$		ThCh$
Litigation (1)		46,536,851		48,695,427
Total		46,536,851		48,695,427

Current		1,333,146		1,591,644
Non-current		45,203,705		47,103,783
Total		46,536,851		48,695,427

(1)

Correspond to the provision made for the probable losses of tax, labor and commercial contingencies, based on the opinion of Management and our legal advisors, according to the following detail:

Description (see note 23.1)	03.31.2023		12.31.2022
	ThCh$		ThCh$
Tax contingencies		25,570,671		27,339,444
Labor contingencies		10,738,377		11,374,753
Civil contingencies		10,227,803		9,981,230
Total		46,536,851		48,695,427

19.2 Movements

The movement of principal provisions over litigation is detailed as follows:

Description	03.31.2023			12.31.2022
	ThCh$			ThCh$
Opening balance at January 1^st		48,695,427			57,412,406
Additional provisions		(8,756	)		48,639
Increase (decrease) in existing provisions		1,258,370			6,359,467
Used provision (payments made charged to the provision)		(748,835	)		(3,108,988	)
Reversal of unused provision*		-			(15,654,522	)
Increase (decrease) due to foreign exchange rate differences		(2,659,355	)		3,638,425
Total		46,536,851			48,695,427

(*)

During 2022, the provision constituted by a defendant of the Government of the State of Rio de Janeiro related to the Advertising Contract was reversed. This is due to a review of the balances involved where the amounts claimed are reduced in favor of Rio de Janeiro Refrescos Ltda.

20 – OTHER NON-FINANCIAL LIABILITIES

Other current and non-current non-financial liabilities at each reporting period end are detailed as follows:

	Current					Non-current
Description	03.31.2023			12.31.2022		03.31.2023			12.31.2022
	ThCh$			ThCh$		ThCh$			ThCh$
Dividends payable		217,732			29,042,469		-			-
Other		13,221,564	⁽¹⁾		13,251,991		26,573,226	⁽²⁾		29,589,051
Total		13,439,296			42,294,460		26,573,226			29,589,051

(1)

Corresponds to an advance payment from Coca-Cola de Chile S.A. for a marketing co-participation plan for the penetration of market equipment, which will be developed between 2022 and until 2024.

(2)

Other non-current corresponds mainly to accounts payable to former shareholders of Companhia de Bebidas Ipiranga (“CBI”). See Note 6 for further information.

21 – EQUITY

21.1

Number of shares:

	Number of subscribed, paid-in and voting shares
Series	2023		2022
A		473,289,301		473,289,301
B		473,281,303		473,281,303

21.1.1

Capital:

	Paid-in and subscribed capital
Series	2023		2022
	ThCh$		ThCh$
A		135,379,504		135,379,504
B		135,358,070		135,358,070
Total		270,737,574		270,737,574

21.1.2 Rights of each series:

Series A: Elects 12 of the 14 Directors.

Series B: Receives an additional 10% of dividends distributed to Series A and elects 2 of the 14 Directors.

21.2

Dividend policy

Under Chilean law, we must distribute cash dividends equivalent to at least 30% of our annual net profit, barring a unanimous vote by shareholders to the contrary. If there is no net profit in a given year, the Company shall not be legally obligated to distribute dividends from accumulated earnings, unless approved by the General Shareholders Meeting. At the General Shareholders’ Meeting held in April 2023, shareholders agreed to pay out of the 2022 earnings a final dividend additional to the 30% required by Chile’s Law on Corporations and an eventual final dividend, which will be paid on May 9, 2023 and May 26, 2023, respectively.

The dividends declared and/or paid per share are presented below:

Approval-Payment
Periods

Dividend type

Profits imputable to
dividends

CLP
Series
A

CLP
Series B

12.27.2022

01.27.2023

Interim

2022 Earnings

29.00

31.90

21.3

Other reserves

The balance of other reserves includes the following:

Concept	03.31.2023			03.31.2022
	ThCh$			ThCh$
Polar acquisition		421,701,520			421,701,520
Foreign currency translation reserves		(581,654,632	)		(461,700,124	)
Cash flow hedge reserve		(7,419,479	)		20,060,281
Reserve for employee benefit actuarial gains or losses		(6,823,901	)		(4,775,584	)
Legal and statutory reserves		5,435,538			5,435,538
Other		6,014,568			6,014,568
Total		(162,746,386	)		(13,263,801	)

21.3.1 Polar acquisition

This amount corresponds to the difference between the valuation at fair value of the issuance of shares of Embotelladora Andina S.A. and the book value of the paid capital of Embotelladoras Coca-Cola Polar S.A., which was finally the value of the capital increase notarized in legal terms.

21.3.2 Cash flow hedge reserve

They arise from the fair value of the existing derivative contracts that have been qualified for hedge accounting at the end of each financial period. When contracts are expired, these reserves are adjusted and recognized in the income statement in the corresponding period (see Note 22).

21.3.3 Reserve for employee benefit actuarial gains or losses

Corresponds to the restatement effect of employee benefits actuarial losses that according to IAS 19 amendments must be carried to other comprehensive income.

21.3.4 Legal and statutory reserves

In accordance with Official Circular N° 456 issued by the Chilean Financial Market Commission (CMF), the legally required price-level restatement of paid-in capital for 2009 is presented as part of other equity reserves and is accounted for as a capitalization from Other Reserves with no impact on net income or retained earnings under IFRS. This amount totaled CLP 5,435,538 thousand as of December 31, 2009.

21.3.5 Foreign currency translation reserves

This corresponds to the conversion of the financial statements of foreign subsidiaries whose functional currency is different from the presentation currency of the Consolidated Financial Statements. Additionally, exchange differences between accounts receivable kept by the companies in Chile with foreign subsidiaries are presented in this account, which have been treated as investment accounted for using the equity method, Translation reserves are detailed as follows:

Description	03.31.2023			03.31.2022
	ThCh$			ThCh$
Brazil		(160,821,266	)		(137,570,010	)
Argentina		(411,014,057	)		(324,336,438	)
Paraguay		(9,819,309	)		206,324
Total		(581,654,632	)		(461,700,124	)

The movement of this reserve for the periods ended on the dates indicated below, is detailed as follows:

Description	03.31.2023			03.31.2022
	ThCh$			ThCh$
Brazil		(20,058,869	)		29,877,379
Argentina		(50,025,207	)		(29,640,210	)
Paraguay		(16,087,190	)		(20,357,205	)
Total		(86,171,266	)		(20,120,036	)

21.4 Non-controlling interests

This is the recognition of the portion of equity and income from subsidiaries owned by third parties. This account is detailed as follows:

	Non-controlling interests
	Ownership %				Shareholders’ Equity				Income
					March		March		March			March
Description	2023		2022		2023		2022		2023			2022
					ThCh$		ThCh$		ThCh$			ThCh$
Embotelladora del Atlántico S.A.		0.0171		0.0171		36,971		35,642		2,637			2,586
Andina Empaques Argentina S.A.		0.0209		0.0209		3,972		3,743		(114	)		68
Paraguay Refrescos S.A.		2.1697		2.1697		6,092,565		6,152,544		274,382			289,126
Vital S.A.		35.0000		35.0000		9,289,627		8,490,832		456,334			430,028
Vital Aguas S.A.		33.5000		33.5000		2,438,279		2,336,812		225,307			298,778
Envases Central S.A.		40.7300		40.7300		7,299,266		6,055,338		634,709			313,067
Re-Ciclar S.A		60.0000		60.0000		4,450,694		2,946,188		165,487			(117,890	)
Total						29,611,374		26,021,099		1,758,742			1,215,763

21.5 Earnings per share

The basic earnings per share presented in the statement of comprehensive income is calculated as the quotient between income for the period and the weighted average number of shares outstanding during the same period.

Earnings per share used to calculate basic and diluted earnings per share is detailed as follows:

Earnings per share	03.31.2023
	SERIES A		SERIES B		TOTAL
Earnings attributable to shareholders (CLP 000’s)		20,637,661		22,701,060		43,338,721
Weighted average number of shares		473,289,301		473,281,303		946,570,604
Earnings per basic and diluted share (CLP)		43.60		47.97		45.78

Earnings per share		03.31.2022
	SERIES A		SERIES B		TOTAL
Earnings attributable to shareholders (CLP 000’s)		15,713,292		17,284,342		32,997,634
Weighted average number of shares		473,289,301		473,281,303		946,570,604
Earnings per basic and diluted share (CLP)		33.20		36.52		34.86

22 – DERIVATIVE ASSETS AND LIABILITIES

Embotelladora Andina currently maintains “Cross Currency Swaps” and “Currency Forward” agreements as derivative financial instruments.

Cross Currency Swaps (“CCS”), also known as interest rate and currency swaps are valued by the method of discounted future cash flows at a market rate corresponding to the currencies and rates of the transaction.

On the other hand, the fair value of forward currency contracts is calculated in reference to current forward exchange rates for contracts with similar maturity profiles.

As of December 31, 2022, the Company holds the following derivative instruments:

22.1 Accounting recognition of cross currency and rate swaps

Cross Currency Swaps, associated with local Bonds (Chile)

As of March 31, 2023, the Company maintains derivative contracts to secure some of its bond debt issued in Unidades de Fomento totaling UF 9,272,781 (UF 9,340,963 as of December 31, 2022), to convert those obligations to CLP.

These contracts were valued at fair value, yielding a net asset as of March 31, 2023 of CLP 82,077,642 thousand (CLP 75,297,737 thousand as of December 31, 2022) which is presented in Other non-current financial assets. Maturity dates of derivative contracts are distributed throughout 2026, 2031, 2034 and 2035.

Cross Currency Swaps, associated with international Bonds (U.S.A.)

As of March 31, 2023, the Company maintains derivative contracts to secure US Dollar public bond obligations of USD 360 million due in 2023, to convert such obligations into Brazilian Real. In addition, derivative contracts amounting to USD 300 million are held to convert such obligation into Unidades de Fomento (UF - CLP re-adjustable by the Consumer Price Index) due in 2050. The valuation of the first contract at its fair value generates a current asset of CLP 152,045,090 thousand as of March 31, 2023 (CLP 170,143,055 thousand current asset as of December 31, 2022), while the valuation of the second contract at its fair value generates a non-current liability of CLP 61,151,441 thousand as of March 31, 2023 (CLP 112,175,058 thousand non-current liability at December 31, 2022).

The amount of exchange differences recognized in the statement of income related to financial liabilities in U.S. dollars are absorbed by the amounts recognized under comprehensive income.

22.2 Forward currency transactions expected to be very likely

During 2023 and 2022, Embotelladora Andina entered into forward contracts to ensure the exchange rate on future commodity purchasing needs for its 4 operations, i.e., closing forward instruments in USD/ARS, USD/BRL, USD/CLP and USD/GYP. As of March 31, 2023, outstanding contracts amount to USD 75.5 million (USD 80.2 million as of December 31, 2022).

Futures contracts that ensure prices of future raw materials have not been designated as hedge agreements, since they do not fulfill IFRS documentation requirements, whereby its effects on variations in fair value are accounted for directly under other comprehensive income.

Fair value hierarchy

As of March 31, 2023, the Company held current assets for derivative contracts for CLP 7,729 thousand (CLP 245,504,291 thousand as of December 31, 2022) and held current liabilities for derivative contracts for CLP 2,398,489 thousand (CLP 114,492,635 thousand as of December 31, 2022). Those contracts covering existing items have been classified in the same category of hedged, the net amount of derivative contracts by concepts covering forecasted items have been classified in current and non-current financial assets and financial liabilities. All the derivative contracts are carried at fair value in the consolidated statement of financial position.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1:		quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2:		Inputs other than quoted prices included in level 1 that are observable for the assets and liabilities, either directly (that is, as prices) or indirectly (that is, derived from prices)

Level 3:		Inputs for assets and liabilities that are not based on observable market data.

During the reporting period, there were no transfers of items between fair value measurement categories; all of which were valued during the period using level 2.

	Fair Value Measurement at March 31, 2023
	Quoted prices in active markets for
	identical assets or liabilities		Observable market data		Unobservable market data
	(Level 1)		(Level 2)		(Level 3)		Total
		ThCh$		ThCh$		ThCh$		ThCh$
Assets
Current assets
Other current financial assets		-		152,052,819		-		152,052,819
Other non-current financial assets		-		82,077,642		-		82,077,642
Total assets		-		234,130,461		-		234,130,461
Liabilities
Other current financial liabilities		-		2,398,489		-		2,398,489
Other non-current financial liabilities		-		61,151,441		-		61,151,441
Total Liabilities		-		63,549,930		-		63,549,930

	Fair Value Measurement at December 31, 2022
		Quoted prices in active markets for
		identical assets or liabilities	Observable market data	Unobservable market data
		(Level 1)	(Level 2)	(Level 3)	Total
		THCH$	THCH$	THCH$	THCH$
Assets
Current assets
Other current financial assets		-	170,206,554	-	170,206,554
Other non-current financial assets		-	75,297,737	-	75,297,737
Total assets		-	245,504,291	-	245,504,291
Liabilities
Other current financial liabilities		-	2,317,577	-	2,317,577
Other non-current financial liabilities		-	112,175,058	-	112,175,058
Total Liabilities		-	114,492,635	-	114,492,635

23 – LITIGATION AND CONTINGENCIES

23.1 Lawsuits and other legal actions:

In the opinion of the Company's legal counsel, the Parent Company and its subsidiaries do not face legal or extrajudicial contingencies that might result in material or significant losses or gains, except for the following:

Embotelladora del Atlántico S.A. and Andina Empaques Argentina S.A. face labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency of a probable loss because of these lawsuits, totaling CLP 1,170,638 thousand (CLP 1,397,149 thousand as of December 31, 2022). Management considers it unlikely that non-provisioned contingencies will affect the Company's income and equity, based on the opinion of its legal counsel. Additionally, Embotelladora del Atlántico S.A. maintains time deposits for an amount of CLP 226,496 thousand to guaranty judicial liabilities.

Rio de Janeiro Refrescos Ltda. faces labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency of a probable loss because of these lawsuits, totaling CLP 44,033,067 thousand (CLP 45,706,634 thousand as of December 31, 2022). Management considers it unlikely that non-provisioned contingencies will affect the Company's income and equity, based on the opinion of its legal counsel. As it is customary in Brazil, Rio de Janeiro Refrescos Ltda. maintains Deposit in courts and assets given in pledge to secure the compliance of certain processes, irrespective of whether these have been classified as a possible, probable or remote. The amounts deposited or pledged as legal guarantees amounted to CLP 22,323,348 thousand (CLP 23,260,412 thousand as of December 31, 2022).

Part of the assets held under warranty by Rio de Janeiro Refrescos Ltda. as of December 31, 2014, are in the process of being released and others have already been released in exchange for guarantee insurance and bond letters for BRL 2,007,738,048, with different Financial Institutions and Insurance Companies in Brazil, these entities receive an annual commission fee of 0.57%. and become responsible of fulfilling obligations with the Brazilian tax authorities should any trial result against Rio de Janeiro Refrescos Ltda. Additionally, if the warranty and bond letters are executed, Rio de Janeiro Refrescos Ltda. promises to reimburse to the financial institutions and Insurance Companies any amounts disbursed by them to the Brazilian government.

Main contingencies faced by Rio de Janeiro Refrescos are as follows:

Tax contingencies resulting from credits on tax on industrialized products (IPI).

Rio de Janeiro Refrescos is a party to a series of proceedings under way, in which the Brazilian federal tax authorities demand payment of value-added tax on industrialized products (Imposto sobre Produtos Industrializados, or IPI) totaling BRL 3,160,933,106 as of March 31, 2023.

The Company does not share the position of the Brazilian tax authority in these procedures and considers that it was entitled to claim IPI tax credits in connection with purchases of certain exempt raw materials from suppliers located in the Manaus free trade zone.

Based on the opinion of its advisers, and legal outcomes to date, Management estimates that these procedures do not represent probable losses and has not recorded a provision on these matters.

Notwithstanding the above, the IFRS related to business combination in terms of distribution of the purchase price establish that contingencies must be measured one by one according to their probability of occurrence and discounted at fair value from the date on which it is deemed the loss can be generated. As a result of the acquisition of Companhia de Bebidas Ipiranga in 2013 and pursuant to this criterion and although there are contingencies listed only as possible for BRL 559,664,789 (amount includes adjustments for current lawsuits) a start provision has been generated in the accounting of the business combination for BRL 123,183,553.

Other tax contingencies.

They refer to ICMS-SP tax administrative processes that challenge the credits derived from the acquisition of tax-exempt products acquired by the Company from a supplier located in the Manaus Free Zone. The total amount is BRL 483,583,102 being assessed by external attorneys as a remote loss, so it has no accounting provision.

The company was challenged by the federal tax authority for tax deductibility of a portion of goodwill in the 2014-2016 period arising from the acquisition of Companhia de Bebidas Ipiranga. The tax authority understands that the entity that acquired Companhia de Bebidas Ipiranga is Embotelladora Andina and not Rio de Janeiro Refrescos Ltda. In the view of external lawyers, such a statement is erroneous, classifying it as a possible loss. The value of this process is BRL 568,7999,483, as of the date of these financial statements.

Embotelladora Andina S.A. and its Chilean subsidiaries face labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency of a probable loss because of these lawsuits, totaling CLP 1,296,101 thousand (CLP 1,552,353 thousand as of December 31, 2022). Management considers it is unlikely that non-provisioned contingencies will affect income and equity of the Company, in the opinion of its legal advisors.

Paraguay Refrescos S.A. faces tax, trade, labor and other lawsuits. Accounting provisions have been made for the contingency of any loss because of these lawsuits amounting to CLP 37,045 thousand (CLP 39,291, thousand as of December 31, 2022). Management considers it is unlikely that non-provisioned contingencies will affect income and equity of the Company, in the opinion of its legal advisors.

23.2 Direct guarantees and restricted assets:

Guarantees and restricted assets are detailed as follows:

Guarantees that commit assets recognized in the financial statements:

Committed assets

Accounting value

Guaranty creditor

Debtor name

Relationship

Guaranty

Type

03.31.2023

12.31.2022

ThCh$

Administradora Plaza Vespucio S.A.

Embotelladora Andina S.A.

Parent company

Cash

Trade accounts and other accounts receivable

99,469

98,170

Cooperativa Agrícola Pisquera Elqui Limitada

Embotelladora Andina S.A.

Parent company

Cash

Other non-current financial assets

1,056,320

Mall Plaza

Embotelladora Andina S.A.

Parent company

Cash

Trade accounts and other accounts receivable

334,674

330,298

Metro S.A.

Embotelladora Andina S.A.

Parent company

Cash

Trade accounts and other accounts receivable

21,488

21,207

Parque Arauco S.A.

Embotelladora Andina S.A.

Parent company

Cash

Trade accounts and other accounts receivable

144,792

142,901

Lease agreement

Embotelladora Andina S.A.

Parent company

Cash

Trade accounts and other accounts receivable

103,396

103,711

Others

Embotelladora Andina S.A.

Parent company

Cash

Trade accounts and other accounts receivable

14,373

14,183

Several retail

Vending

Subsidiary

Cash

Trade accounts and other accounts receivable

61,395

Several retail

Transportes Refrescos

Subsidiary

Cash

Trade accounts and other accounts receivable

693

Several retail

Transportes Polar

Subsidiary

Cash

Trade accounts and other accounts receivable

22,235

Workers’ claims

Rio de Janeiro Refrescos Ltda.

Subsidiary

Judicial deposit

Other non-current non-financial assets

6,452,628

6,605,781

Civil and tax claims

Rio de Janeiro Refrescos Ltda.

Subsidiary

Judicial deposit

Other non-current non-financial assets

6,199,997

6,457,702

Governmental entities

Rio de Janeiro Refrescos Ltda.

Subsidiary

Plant and equipment

Property, plant & equipment

9,670,723

10,196,929

Distribuidora Baraldo S.H.

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

Acuña Gomez

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

113

145

Nicanor López

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

104

Municipalidad Bariloche

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

1,900

2,428

Municipalidad San Antonio Oeste

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

8,348

10,664

Municipalidad Carlos Casares

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

338

431

Municipalidad Chivilcoy

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

52,210

66,697

Granada Maximiliano

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

681

870

Municipalidad de Junin

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

109

139

Almada Jorge

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

924

1,180

Farias Matias Luis

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

424

541

Temas Industriales SA - Embargo General de Fondos

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

47,418

60,575

DBC SA C CERVECERIA ARGENTINA SA ISEMBECK

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

8,509

10,870

Coto Cicsa

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

1,513

1,932

Cencosud

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

945

1,208

Jose Luis Kreitzer, Alexis Beade Y Cesar Bechetti

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

3,745

4,784

Vicentin

Embotelladora del Atlántico S.A.

Subsidiary

Judicial deposit

Other non-current non-financial assets

99,123

125,683

Marcus A.Peña

Paraguay Refrescos

Subsidiary

Real estate

Property, plant & equipment

4,761

4,965

Ana Maria Mazó

Paraguay Refrescos

Subsidiary

Real estate

Property, plant & equipment

982

1,113

Stefano Szwao Giacomelli

Paraguay Refrescos

Subsidiary

Real estate

Property, plant & equipment

2,636

Guarantees that do not commit assets recognized in the Financial Statements:

Committed assets

Amounts involved

Guaranty creditor

Debtor name

Relationship

Guaranty

Type

03.31.2023

12.31.2022

ThCh$

Labor procedures

Rio de Janeiro Refrescos Ltda.

Subsidiary

Guaranty receipt

Legal proceeding

1,890,114

1,936,493

Administrative procedures

Rio de Janeiro Refrescos Ltda.

Subsidiary

Guaranty receipt

Legal proceeding

9,492,288

7,616,498

Federal government

Rio de Janeiro Refrescos Ltda.

Subsidiary

Guaranty receipt

Legal proceeding

176,660,336

186,607,491

State government

Rio de Janeiro Refrescos Ltda.

Subsidiary

Guaranty receipt

Legal proceeding

117,884,030

117,027,313

Sorocaba Refrescos

Rio de Janeiro Refrescos Ltda.

Subsidiary

Guaranty receipt

Guarantor

3,111,605

3,280,603

Others

Rio de Janeiro Refrescos Ltda.

Subsidiary

Guaranty receipt

Legal proceeding

3,326,053

3,423,715

Aduana de EZEIZA

Andina Empaques Argentina S.A.

Subsidiary

Surety insurance

Faithful compliance of contract

3,502

3,791

24 – FINANCIAL RISK MANAGEMENT

The Company’s businesses are exposed to a variety of financial and market risks (including foreign exchange risk, interest rate risk and price risk). The Company’s global risk management program focuses on the uncertainty of financial markets and seeks to minimize potential adverse effects on the performance of the Company. The Company uses derivatives to hedge certain risks. A description of the primary policies established by the Company to manage financial risks are provided below:

Interest Rate Risk

At March 31, 2023, the Company maintains all of its debt obligations denominated in fixed rates in order to avoid fluctuations in financial expenses resulting from an increase in interest rates.

The Company’s greatest indebtedness corresponds to six contracts for own issued Chilean local bonds at a fixed rate, which currently have an outstanding balance of UF 15.45 million denominated in UF (“UF”), debt indexed to inflation in Chile (Company sales are correlated with the UF variation), of which five of these Local Bonds have been redenominated through Cross Currency Swaps to Chilean Pesos (CLP).

On the other hand, there is also the Company’s indebtedness on the international market through two 144A/RegS Bonds at a fixed rate, one for USD 365 million, denominated in dollars, and practically 100% of which has been re-denominated to BRL through Cross Currency Swaps, and another one for USD 300 million denominated in USD, and practically 100% of which has been re-denominated to Unidades de Fomento (UF) through Cross Currency Swaps.

Credit risk

The credit risk to which the Company is exposed comes mainly from trade accounts receivable maintained with retailers, wholesalers and supermarket chains in domestic markets; and the financial investments held with banks and financial institutions, such as time deposits, mutual funds and derivative financial instruments.

Trade accounts receivable and other current accounts receivable

Credit risk related to trade accounts receivable is managed and monitored by the area of Finance and Administration of each business unit. The Company has a wide base of more than 283 thousand clients implying a high level of atomization of accounts receivable, which are subject to policies, procedures and controls established by the Company. In accordance with such policies, credits must be based objectively, non-discretionary and uniformly granted to all clients of a same segment and channel, provided these will allow generating economic benefits to the Company. The credit limit is checked periodically considering payment behavior. Trade accounts receivable pending of payment are monitored on a monthly basis,

Sale Interruption

In accordance with Corporate Credit Policy, the interruption of sale must be within the following framework: when a customer has outstanding debts for an amount greater than USD 250,000, and over 60 days expired, sale is suspended. The General Manager in conjunction with the Finance and Administration Manager authorize exceptions to this rule, and if the outstanding debt should exceed USD 1,000,000, and in order to continue operating with that client, the authorization of the Chief Financial Officer is required. Notwithstanding the foregoing, each operation can define an amount lower than USD 250,000 according to the country’s reality.

ii.

Impairment

The impairment recognition policy establishes the following criteria for provisions: 30% is provisioned for 31 to 60 days overdue, 60% between 60 and 91 days, 90% between 91 and 120 days overdue and 100% for more than 120 days. Exemption of the calculation of global impairment is given to credits whose delays in the payment correspond to accounts disputed with the customer whose nature is known and where all necessary documentation for collection is available, therefore, there is no uncertainty on recovering them. However, these accounts also have an impairment provision as follows: 40% for 91 to 120 days overdue, 80% between 120 and 170, and 100% for more than 170 days.

iii.

Prepayment to suppliers

The Policy establishes that USD 25,000 prepayments can only be granted to suppliers if its value is properly and fully provisioned. The Treasurer of each subsidiary must approve supplier warranties that the Company receives for prepayments before signing the respective service contract, In the case of domestic suppliers, a warranty ballot (or the instrument existing in the country) shall be required, in favor of Andina executable in the respective country, non-endorsable, payable on demand or upon presentation and its validity will depend on the term of the contract. In the case of foreign suppliers, a stand-by credit letter will be required which shall be issued by a first line bank; in the event that this document is not issued in the country where the transaction is done, a direct bank warranty will be required. Subsidiaries can define the best way of safeguarding the Company’s assets for prepayments under USD 25,000.

iv.

Guarantees

In Chile, we have insurance with Compañía de Seguros de Crédito Continental S.A (AA rating –according to Fitch Chile and Humphreys rating agencies) covering the credit risk regarding trade debtors in Chile.

The rest of the operations do not have credit insurance, instead mortgage guarantees are required for volume operations of wholesalers and distributors in the case of trade accounts receivables. In the case of other debtors, different types of guarantees are required according to the nature of the credit granted.

Historically, uncollectible trade accounts have been lower than 0.5% of the Company’s total sales,

Financial investment.

The Company has a Policy that is applicable to all the companies of the group in order to cover credit risks for financial investments, restricting both the types of instruments as well as the institutions and degree of concentration. The companies of the group can invest in:

Time deposits: only in banks or financial institutions that have a risk rating equal or higher than Level 1 (Fitch) or equivalent for deposits of less than 1 year and rated A or higher (S&P) or equivalent for deposits of more than 1 year.

ii.

Mutual funds: investments with immediate liquidity and no risk of capital (funds composed of investments at a fixed-term, current account, fixed rate Tit BCRA, negotiable obligations, Over Night, etc.,) in all those counter-parties that have a rating greater than or equal to AA-(S&P) or equivalent, Type 1 Pacts and Mutual Funds, with a rating greater than or equal to AA+ (S&P) or equivalent.

iii.

Other investment alternatives must be evaluated and authorized by the office of the Chief Financial Officer.

Exchange Rate Risk

The company is exposed to three types of risk caused by exchange rate volatility:

a) Exposure of foreign investment

This risk originates from the translation of net investment from the functional currency of each country (Brazilian Real, Paraguayan Guaraní, and Argentine Peso) to the Parent Company’s reporting currency (Chilean Peso). Appreciation or devaluation of the Chilean Peso with respect to the functional currencies of each country, originates decreases and increases in equity, respectively. The Company does not hedge this risk.

	BRL/CLP			ARS/CLP			PGY/CLP
Parity variation at March 31, 2023		-5.2	%		-21.7	%		-5.7	%

		Brazil			Argentina			Paraguay
		ThCh$			ThCh$			ThCh$
Total assets		882,893,100			366,459,348			331,462,684
Total liabilities		617,709,491			135,123,299			50,665,460
Net investment		265,183,609			231,336,048			280,797,224
Share on income		23.0	%		24.8	%		7.7	%

-5% variation impact on currency translation
Impact on results for the period		(487,551	)		(709,705	)		(602,185	)
Impact on equity at closing		(12,627,791	)		(11,016,002	)		(13,371,296	)

Net exposure of assets and liabilities in foreign currency

This risk stems mostly from carrying liabilities in US dollar, so the volatility of the US dollar with respect to the functional currency of each country generates a variation in the valuation of these obligations, with consequent effect on results.

In order to protect the Company from the effects on income resulting from the volatility of the Brazilian Real and the Chilean Peso against the U,S, dollar, the Company maintains derivative contracts (cross currency swaps) to cover almost 100% of US dollar-denominated financial liabilities.

By designating such contracts as hedging derivatives, the effects on income for variations in the Chilean Peso and the Brazilian Real against the US dollar, are mitigated annulling its exposure to exchange rates.

b) Exposure of assets purchased or indexed to foreign currency

This risk originates from purchases of raw materials and investments in Property, plant and equipment, whose values are expressed in a currency other than the functional currency of the subsidiary. Changes in the value of costs or investments can be generated through time, depending on the volatility of the exchange rate.

In order to minimize this risk, the Company maintains a currency hedging policy stipulating that it is necessary to enter into foreign currency derivatives contracts to lessen the effect of the exchange rate over cash expenditures expressed in US dollars, corresponding mainly to payment to suppliers of raw materials in each of the operations. This policy stipulates up to 12-month forward horizon.

Commodities risk

The Company is subject to a risk of price fluctuations in the international markets mainly for sugar, PET resin and aluminum, which are inputs used to produce beverages and containers, which together, account for 35% to 40% of operating costs. Procurement and anticipated purchase contracts are made frequently to minimize and/or stabilize this risk. To minimize this risk or stabilize often supply contracts and anticipated purchases are made when market conditions warrant.

Liquidity risk

The products we sell are mainly paid for in cash and short-term credit; therefore, the Company´s main source of financing comes from the cash flow of our operations. This cash flow has historically been sufficient to cover the investments necessary for the normal course of our business, as well as the distribution of dividends approved by the General Shareholders’ Meeting. Should additional funding be required for future geographic expansion or other needs, the main sources of financing to consider are: (i) debt offerings in the Chilean and foreign capital markets (ii) borrowings from commercial banks, both internationally and in the local markets where the Company operates; and (iii) public equity offerings.

The following table presents an analysis of the Company’s committed maturities for liability payments throughout the coming years, with interest calculated for each period:

As of March 31, 2023	Payments on the year of maturity
Item	1 year		More than 1 up to 2		More than 2 up to 3		More than 3 up to 4		More than 5
		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Bank debt		743,741		9,241,891		4,081,333		-		-
Bonds payable		307,086,095		15,973,707		16,696,668		11,059,618		704,922,158
Lease obligations		5,520,684		2,125,461		4,889,054		2,599,964		4,598,133
Contractual obligations (1)		106,864,756		24,504,874		10,722,173		10,469,784		3,207,510
Total		420,215,276		51,845,933		36,389,228		24,129,366		712,727,801

(1)

Agreements that the Andina Group has with collaborating entities for its operation, which are mainly related to contracts entered into to supply products and/or support services in information technology services, commitments of the company with its franchisor to make investments or expenses related to the development of the franchise, support services to personnel, security services, maintenance services of fixed assets, purchase of inputs for production, among others.

25 – EXPENSES BY NATURE

Other expenses by nature are:

	01.01.2023			01.01.2022
Description	03.31.2023			03.31.2022
	ThCh$			ThCh$
Direct production costs		(363,263,559	)		(337,253,794	)
Payroll and employee benefits		(92,847,642	)		(78,181,137	)
Transportation and distribution		(62,867,615	)		(56,529,261	)
Advertisement		(11,157,859	)		(6,408,722	)
Depreciation and amortization		(29,133,739	)		(25,958,600	)
Repairs and maintenance		(7,418,208	)		(7,451,454	)
Other expenses		(34,866,679	)		(17,026,359	)
Total (1)		(603,519,281	)		(528,809,327	)

(1)

Corresponds to the addition of cost of sales, administrative expenses and distribution costs.

26 – OTHER INCOME

Other income by function is detailed as follows:

	01.01.2022		01.01.2022
Description	03.31.2023		03.31.2022
	ThCh$		ThCh$
Gain due to disposal of Property, plant and equipment		11,067		4,328
Others		179,209		170,164
Total		190,276		174,492

27 – OTHER EXPENSES BY FUNCTION

Other expenses by function are detailed as follows:

	01.01.2022			01.01.2022
Description	03.31.2023			03.31.2022
	ThCh$			ThCh$
Contingencies and non-operating fees		(2,773,351	)		(2,555,135	)
Tax on bank debits and other bank expenses		(1,712,062	)		(1,420,254	)
Write-offs, disposals and loss of property, plant and equipment		-			21,005
Others		(85,649	)		(48,297	)
Total		(4,571,061	)		(4,002,681	)

28 – FINANCIAL INCOME AND EXPENSES

Financial income and costs are detailed as follows:

Financial income

	01.01.2022		01.01.2022
Description	03.31.2023		03.31.2022
	ThCh$		ThCh$
Interest income		9,990,357		9,540,011
Ipiranga purchase warranty restatement		11,020		6,009
From PIS credit and COFINS (1)		133,014		761,935
Other financial income		1,494,594		997,505
Total		11,628,985		11,305,460

(1)

See Note 6 for more information on recovery.

Financial expenses

	01.01.2022			01.01.2022
Description	03.31.2023			03.31.2022
	ThCh$			ThCh$
Bond interest		(12,508,918	)		(12,431,300	)
Bank loan interest		(99,257	)		(68,612	)
Lease interest		(550,366	)		(489,196	)
Other financial costs		(758,022	)		(625,368	)
Total		(13,916,563	)		(13,614,476	)

29 – OTHER (LOSSES) GAINS

Other (losses) gains are detailed as follows:

	01.01.2023			01.01.2022
Description	03.31.2023			03.31.2022
	ThCh$			ThCh$
Other gains and losses*		(18	)		-
Total		(18	)		-

30 – LOCAL AND FOREIGN CURRENCY

Local and foreign currency balances are the following:

CURRENT ASSETS	03.31.2023		12.31.2022
	ThCh$		ThCh$
Cash and cash equivalent		259,267,836		291,681,987
USD		21,931,721		14,266,343
EUR		1,379,039		870,613
CLP		82,936,617		138,205,025
BRL		71,458,757		69,923,621
ARS		33,680,741		29,215,288
PGY		47,880,961		39,201,097

Other current financial assets		247,479,307		263,044,869
CLP		95,422,586		92,826,375
BRL		152,056,721		170,154,995
ARS		-		63,499
PGY

Other non-current financial assets		24,445,675		26,957,000
USD		3,046,191		847,149
EUR		896,301		329,535
UF		1,059,629		517,748
CLP		6,446,914		12,478,839
BRL		3,176,263		2,382,575
ARS		7,386,087		8,596,540
PGY		2,434,290		1,804,614

Trade debtors and other accounts payable		223,476,662		279,770,286
USD		2,029,190		1,467,851
EUR		6,726		6,770
UF		393,492		49,469
CLP		142,652,333		155,443,395
BRL		45,598,583		74,851,690
ARS		26,913,448		39,795,968
PGY		5,882,890		8,155,143

Accounts receivable related entities		12,712,063		15,062,167
CLP		12,292,829		14,738,236
BRL		78,717		86,492
ARS		340,517		237,439

Inventory		243,867,857		245,886,656
CLP		100,707,722		103,719,764
BRL		65,044,948		60,074,387
ARS		61,237,129		62,655,300
PGY		16,878,058		19,437,205

Current tax assets		16,027,572		39,326,427
CLP		6,753,065		33,296,214
BRL		9,274,507		5,633,971
ARS		-		396,242

Total current assets		1,027,276,972		1,161,729,392
USD		27,007,102		16,581,343
EUR		2,282,066		1,206,918
UF		1,453,121		567,217
CLP		447,212,066		550,707,848
BRL		346,688,496		383,107,731
ARS		129,557,922		140,896,777
PGY		73,076,199		68,661,558

NON-CURRENT ASSETS	03.31.2023		12.31.2022
	CLP (000's)		ThCh$
Other non-current assets		100,429,557		94,852,711
USD		16,326,589		-
UF		1,216,865		75,297,737
CLP		67,626,966		3,317,778
ARS		15,259,137		16,237,196

Other non-current, non-financial assets		57,420,002		59,672,266
USD		134,010		91,220
UF		442,394		-
CLP		47,531		483,530
BRL		53,152,810		55,060,849
ARS		2,073,677		2,367,042
PGY		1,569,580		1,669,625

Non-current accounts receivable		603,366		539,920
UF		--		249,366
CLP		549,443		233,773
ARS		-		56,781
PGY		53,923		-

Non-current accounts receivable related entities		109,318		109,318
CLP		109,318		109,318

Investments accounted for using the equity method		91,687,930		92,344,598
CLP		55,019,439		53,869,966
BRL		36,668,491		38,474,632

Intangible assets other than goodwill		652,197,021		671,778,888
CLP		3,959,421		-
BRL		309,339,229		312,981,971
ARS		167,984,497		177,173,694
PGY		8,228,396		9,075,200
		162,685,478		172,548,023
Goodwill
CLP		122,442,598		129,023,922
BRL		9,523,767		9,523,768
ARS		62,524,918		65,920,764
PGY		43,488,013		46,254,831
		6,905,900		7,324,559
Property, plant and equipment
EUR		780,620,126		798,221,259
CLP		-		3,146
BRL		316,170,066		303,797,013
ARS		215,952,604		229,486,365
PGY		167,155,677		177,219,624
		81,341,779		87,715,111
Deferred tax assets
CLP		2,121,935		2,428,333
		2,121,935		2,428,333
Total non-current assets
USD		1,807,631,853		1,848,971,215
EUR		20,420,020		91,220
UF		-		3,146
CLP		1,659,259		75,547,103
BRL		760,507,694		686,745,450
ARS		536,283,320		566,116,304
PGY		236,204,900		251,153,893
		252,556,660		269,314,099

	03.31.2023						12.31.2022
CURRENT LIABILITIES	Up to 90 days		90 days up to 1 year		Total		Up to 90 days		90 days up to 1 year		Total
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Other current financial liabilities		13,596,743		13,596,743		13,596,743		13,431,339		353,870,741		367,302,080
USD		256,986		256,986		256,986		249,660		321,143,849		321,393,509
UF		12,401,519		12,401,519		12,401,519		11,047,586		11,557,808		22,605,394
CLP		282,861		282,861		282,861		893,612		14,216,358		15,109,970
BRL		410,319		410,319		410,319		427,270		1,703,193		2,130,463
ARS		245,058		245,058		245,058		813,211		3,910,926		4,724,137
PGY		-		-		-		-		1,338,607		1,338,607

Current trade accounts and other accounts payable		295,126,255		295,126,255		295,126,255		369,548,991		15,252,639		384,801,630
USD		33,920,080		33,920,080		33,920,080		34,223,389		33,046		34,256,435
EUR		2,335,364		2,335,364		2,335,364		3,148,088		899,198		4,047,286
UF		2,144,844		2,144,844		2,144,844		2,263,175		-		2,263,175
CLP		130,974,809		130,974,809		130,974,809		166,847,281		14,320,395		181,167,676
BRL		68,179,435		68,179,435		68,179,435		78,514,701		-		78,514,701
ARS		45,843,227		45,843,227		45,843,227		69,945,679		-		69,945,679
PGY		11,728,496		11,728,496		11,728,496		14,606,678		-		14,606,678


Current accounts payable to related entities		86,499,143		86,499,143		86,499,143		90,248,067		-		90,248,067
CLP		37,627,286		37,627,286		37,627,286		44,298,074		-		44,298,074
BRL		33,851,738		33,851,738		33,851,738		35,671,648		-		35,671,648
ARS		10,914,693		10,914,693		10,914,693		8,587,487		-		8,587,487
PGY		4,105,426		4,105,426		4,105,426		1,690,858		-		1,690,858


Other current provisions		1,045,956		1,045,956		1,045,956		1,319,935		271,709		1,591,644
CLP		1,045,956		1,045,956		1,045,956		1,319,935		232,418		1,552,353
PGY		-		-		-		-		39,291		39,291

Current tax liabilities		6,877,254		6,877,254		6,877,254		627,257		13,988,190		14,615,447
CLP		6,657,757		6,657,757		6,657,757		627,257		7,301		634,558
ARS		219,497		219,497		219,497		-		13,479,571		13,479,571
PGY		-		-		-		-		501,318		501,318

Current employee benefit provisions		26,715,600		26,715,600		26,715,600		45,482,776		2,909,030		48,391,806
CLP		4,966,594		4,966,594		4,966,594		8,115,837		1,052,395		9,168,232
BRL		12,926,414		12,926,414		12,926,414		19,586,150		-		19,586,150
ARS		8,822,592		8,822,592		8,822,592		17,780,789		-		17,780,789
PGY		-		-		-		-		1,856,635		1,856,635

Other current non-financial liabilities		936,377		936,377		936,377		1,054,187		41,240,273		42,294,460
CLP		927,497		927,497		927,497		1,043,048		41,072,576		42,115,624
ARS		8,880		8,880		8,880		11,139		-		11,139
PGY		-		-		-		-		167,697		167,697

Total current liabilities		430,797,328		430,797,328		430,797,328		521,712,552		427,532,582		949,245,134
USD		34,177,066		34,177,066		34,177,066		34,473,049		321,176,895		355,649,944
EUR		2,335,364		2,335,364		2,335,364		3,148,088		899,198		4,047,286
UF		14,546,363		14,546,363		14,546,363		13,310,761		11,557,808		24,868,569
CLP		182,482,760		182,482,760		182,482,760		223,145,044		70,901,442		294,046,486
BRL		115,367,906		115,367,906		115,367,906		134,199,769		1,703,193		135,902,962
ARS		66,053,947		66,053,947		66,053,947		97,138,305		17,390,497		114,528,802
PGY		15,833,922		15,833,922		15,833,922		16,297,536		3,903,548		20,201,084

	03.31.2023								31.12.2022
NON CURRENT LIABILITIES	More than 1 year up to 3		More than 3 and up to 5		More than 5 years		Total		More than 1 year up to 3		More than 3 and up to 5		More than 5 years		Total
		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Other non-current financial liabilities		40,167,691		28,366,408		768,723,996		837,258,095		40,713,614		28,457,265		835,631,179		904,802,058
USD		1,296,386		496,663		232,592,280		234,385,329		1,612,279		513,738		251,617,079		253,743,096
UF		35,487,794		15,801,509		472,705,037		523,994,340		35,491,226		15,781,426		468,927,353		520,200,005
CLP		-		8,500,000		61,151,441		69,651,441		-		8,500,000		112,175,058		120,675,058
BRL		3,304,843		3,568,236		2,275,238		9,148,317		3,473,970		3,662,101		2,911,689		10,047,760
ARS		78,668		-		-		78,668		136,139		-		-		136,139

Non-current accounts payable		2,534,462		-		-		2,534,462		3,015,284		-		-		3,015,284
CLP		2,534,462		-		-		2,534,462		3,015,284		-		-		3,015,284

Accounts payable related entities		9,820,905		-		-		9,820,905		10,354,296		-		-		10,354,296
BRL		9,820,905		-		-		9,820,905		10,354,296		-		-		10,354,296

Other non-current provisions		1,170,639		44,033,066		-		45,203,705		1,397,148		45,706,635		-		47,103,783
BRL		-		44,033,066		-		44,033,066		-		45,706,635				45,706,635
ARS		1,170,639		-		-		1,170,639		1,397,148		-		-		1,397,148

Deferred tax liabilities		29,280,826		33,671,440		103,757,129		166,709,395		26,966,210		34,088,989		104,723,357		165,778,556
CLP		6,016,435		15,770		88,802,575		94,834,780		5,617,287		38,945		88,895,598		94,551,830
BRL		-		33,655,670		-		33,655,670		-		34,050,044		-		34,050,044
ARS		23,264,391		-		-		23,264,391		21,348,923		-		-		21,348,923
PGY		-		-		14,954,554		14,954,554		-		-		15,827,759		15,827,759

Non-current employee benefit provisions		1.154.644		229,149		15,025,240		16,409,033		1.299.511		60,560		16,049,722		17,409,793
CLP		616,743		229,149		15,025,240		15,871,132		665,274		60,560		16,049,722		16,775,556
ARS		-		-		-		-		10,484		-		-		10,484
PGY		537,901		-		-		537,901		623,753		-		-		623,753

Other non-financial liabilities		-		26,573,226		-		26,573,226		-		29,589,051		-		29,589,051
BRL		-		26,573,226		-		26,573,226		-		29,589,051		-		29,589,051
ARS

Total non-current liabilities		84,129,166		132,873,289		887,506,365		1,104,508,821		83,746,063		137,902,500		956,404,258		1,178,052,821
USD		1,296,386		496,663		232,592,280		234,385,329		1,612,279		513,738		251,617,079		253,743,096
UF		35,487,794		15,801,509		472,705,037		523,994,340		35,491,226		15,781,426		468,927,353		520,200,005
CLP		9,167,640		8,744,919		164,979,256		182,891,815		9,297,845		8,599,505		217,120,378		235,017,728
BRL		13,125,748		107,830,198		2,275,238		123,231,184		13,828,266		113,007,831		2,911,689		129,747,786
ARS		24,513,698		-		-		24,513,698		22,892,694		-		-		22,892,694
PGY		537,901		-		14,954,554		15,492,455		623,753		-		15,827,759		16,451,512

31 – ENVIRONMENT (Non-audited)

The Company has made disbursements for industrial process improvements, industrial waste flow measurement equipment, laboratory analysis, consulting on environmental impacts and other studies.

The detail of these disbursements by country is as follows:

	2023 period				Future commitments
	Charged to		Charged to		To be charged to		To be charged to
Countries	expenses		fixed assets		expenses		fixed assets
	ThCh$		ThCh$		ThCh$		ThCh$
Chile		865,219		-		-		-
Argentina		57,621		-		-		-
Brazil		466,968		51,574		1,849,280		213,175
Paraguay		27,275		-		-		-
Total		1,417,083		51,574		1,849,280		213,175

32 – SUBSEQUENT EVENTS

At the General Shareholders' Meeting held on April 20, 2023, shareholders agreed to pay Dividend No. 225, out of 2022 earnings, payable in Chilean pesos, in the amount of Ch$29.0 for each Series A share and Ch$31.9 for each Series B share, and Dividend No. 226, out of retained earnings, in the amount of Ch$55.0 for each Series A share and Ch$55.0 for each Series B share.

These dividends will be paid on May 9, 2023 and May 26, 2023, respectively, to shareholders registered in the Shareholders' Registry on the fifth business day prior to the respective payment date.

No other events have occurred subsequent to March 31, 2023, that may significantly affect the Company's consolidated financial position.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Santiago, Chile.

	EMBOTELLADORA ANDINA S.A.

	By:	/s/ Andrés Wainer
	Name: Andrés Wainer
	Title: Chief Financial Officer

Santiago, May 04, 2023

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