6-K - AKO-A - Equibles

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

June 2022

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

Consolidated Interim FinancialStatements

EMBOTELLADORA ANDINAS.A. AND SUBSIDIARIES

Santiago, Chile

June 30,2022 and December 31, 2021

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Interim Financial Statements

at June 30, 2022 (non-audited)and December 31, 2021

INDEPENDENT AUDITOR’S REVIEW REPORT

(Translation of the report originally issued in Spanish)

Santiago, July 26, 2022

To the Shareholders and Directors

Embotelladora Andina S.A.

We have reviewed the accompanying interim consolidated financial statements of Embotelladora Andina S.A. and subsidiaries, which comprise the interim consolidated statement of financial position as of June 30, 2022, and the related interim consolidated statements of income by function and comprehensive income for the three-month and six-month periods ended June 30, 2022, and the related interim consolidated statements of changes in equity and cash flows for the six-month periods then ended.

The interim consolidated statements of income by function and comprehensive income, changes in equity and cash flows of Embotelladora Andina S.A. and subsidiaries for the three and six-month periods ended June 30, 2021, were reviewed by other auditors, whose report dated July 27, 2021, stated that based on their review, they were not aware of any significant modifications that should be made to such statements to conform with IAS 34 incorporated in the International Financial Reporting Standards. The consolidated statement of financial position of the Company as of December 31, 2021, and the related comprehensive consolidated statements of income, changes in equity and cash flows for the year then ended, which are not presented attached hereto, were audited by other auditors, in whose report dated February 22, 2022, they expressed an unmodified opinion on those audited financial statements."

Management’s responsibility for the interim consolidated financial statements

Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with International IAS 34 “Interim Financial Reporting”. This responsibility includes the design, implementation and maintenance of an internal control sufficient to provide a reasonable basis for the preparation and fair presentation of the interim consolidated financial statements, in accordance with the relevant framework of preparation and presentation financial reporting.

Auditor’s responsibility

Our responsibility is to conduct our reviews in accordance with Chilean generally accepted auditing standards applicable to reviews of interim consolidated financial statements. A review of interim consolidated financial statements consists mainly of applying analytical procedures and making inquiries with those responsible for accounting and financial matters. A review is substantially less in scope than an audit conducted in accordance with Chilean generally accepted auditing standards, whose purpose is to express an opinion on the financial statements. Consequently, we do not express such an opinion.

Conclusion

Based on our review, we are not aware of any significant modifications that should be made to the interim consolidated financial statements for them to be in accordance with IAS 34 "Interim Financial Reporting" as incorporated into International Financial Reporting Standards.

PwC Chile

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Interim Financial Statements

I. Consolidated Interim Statements of Financial Position as of June 30, 2022 (non-audited) and December 31, 2021	1
II. Consolidated Interim Statements of Income by Function (non-audited)	3
III. Consolidated Interim Statements of Comprehensive Income (non-audited)	4
IV. Consolidated Interim Statements of Changes in Equity (non-audited)	5
V. Consolidated Interim Statements of Direct Cash Flows (non-audited)	6
VI. Notes to the Consolidated<br> Interim Financial Statements
1 – Corporate Information	7
---	---
2 – Basis of preparation of Consolidated Financial Statements and application of accounting criteria	8
3 – Financial Reporting by Segment	27
4 – Cash and cash equivalents	30
5 – Other current and non-current financial assets	30
6 – Other current and non-current non-financial assets	31
7 – Trade accounts and other accounts receivable	32
8 – Inventories	33
9 – Tax assets and liabilities	33
10 – Income tax epense and deferred taxes	34
11 – Property, plant and equipment	37
12 – Related parties	40
13 – Current and non-current employee benefits	43
14 – Investments in associates accounted for using the equity method	44
15 – Intangible assests other than goodwill	47
16 – Goodwill	48
17 – Other current and non-current financial liabilities	48
18 – Trade and other accounts payable	60
19 – Other provisions, current and non-current	60
20 – Other non-financial liabilities	61
21 – Equity	61
22 – Derivatives assets and liabilities	64
23 – Litigations and contingencies	67
24 – Financial risk management	71
25 – Expenses by nature	75
26 – Other income	75
27 – Other expenses by function	76
28 – Financial income and costs	76
29 – Other (losses) gains	77
30 – Local and foreign currency	78
31 – Environment	82
32 – Subsequent events	82

Consolidated Interim Financial Statements

EMBOTELLADORAANDINA S.A. AND SUBSIDIARIES

June 30, 2022 and December 31, 2021

EMBOTELLADORAANDINA S.A. AND SUBSIDIARIES

Consolidated Interim Statements of FinancialPosition

as of June 30, 2022 (non-audited) and December 31,2021

ASSETS		06.30.2022		12.31.2021
		CLP (000’s)<br> <br>(non-audited)		CLP (000’s)
Current assets:
Cash and cash equivalents	4		261,641,342		304,312,020
Other financial assets	5		81,356,758		195,470,749
Other non-financial assets	6		29,133,568		14,719,104
Trade and other accounts receivable, net	7		237,364,959		265,490,626
Accounts receivable from related companies	12.1		8,473,299		9,419,050
Inventory	8		231,015,041		191,350,206
Current tax assets	9		31,415,951		10,224,368
Total Current Assets			880,400,918		990,986,123
Non-Current Assets:
Other financial assets	5		287,120,552		296,632,012
Other non-financial assets	6		62,265,479		70,861,616
Trade and other receivables	7		379,652		126,464
Accounts receivable from related parties	12.1		115,865		98,941
Investments accounted for under the equity method	14		98,547,489		91,489,194
Intangible assets other than goodwill	15		709,657,964		659,631,543
Goodwill	16		138,716,094		118,042,900
Property, plant and equipment	11		802,164,079		716,379,127
Deferred tax assets	10.2		2,748,188		1,858,727
Total Non-Current Assets			2,101,715,362		1,955,120,524
Total Assets			2,982,116,280		2,946,106,647

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

EMBOTELLADORAANDINA S.A. AND SUBSIDIARIES

Consolidated InterimStatements of Financial Position

as of June 30, 2022 (non-audited) and December 31,2021

LIABILITIES AND EQUITY		06.30.2022		12.31.2021
		CLP (000’s)<br> <br>(non-audited)		CLP (000’s)
LIABILITIES
Current Liabilities
Other financial liabilities	17		56,199,035		47,763,039
Trade and other accounts payable	18		299,436,291		327,409,207
Accounts payable to related parties	12.2		69,925,001		56,103,461
Other provisions	19		1,274,667		1,528,879
Tax liabilities	9		17,372,542		30,512,787
Employee benefits current provisions	13		32,118,800		35,012,072
Other non-financial liabilities	20		17,422,644		31,237,834
Total Current Liabilities			493,748,980		529,567,279
Other financial liabilities	17		1,140,617,972		1,041,048,972
Accounts payable	18		1,958,773		256,273
Accounts payable to related companies	12.2		13,587,372		11,557,723
Other provisions	19		53,906,620		55,883,527
Deferred tax liabilities	10.2		172,692,737		168,454,827
Employee benefits non-current provisions	13		14,920,824		14,139,670
Other non-financial liabilities	20		29,845,005		23,784,817
Total Non-current liabilities			1,427,529,303		1,315,125,809
EQUITY	21
Issued capital			270,737,574		270,737,574
Retained earnings			708,165,052		768,116,920
Other reserves			53,877,271		37,289,310
Equity attributable to equity holders of the parent			1,032,779,897		1,076,143,804
Non-controlling interests			28,058,100		25,269,755
Total Equity			1,060,837,997		1,101,413,559
Total Liabilities and Equity			2,982,116,280		2,946,106,647

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

EMBOTELLADORAANDINA S.A. AND SUBSIDIARIES

Consolidated Interim Statements of Income byFunction

For the periods ended June 30, 2022 and2021 (non-audited)

			01.01.2022			01.01.2021			04.01.2022			04.01.2021
	NOTE		06.30.2022<br> <br>(non-audited)			06.30.2021<br> <br>(non-audited)			06.30.2022<br> <br>(non-audited)			06.30.2021<br> <br>(non-audited)
			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Net sales				1,254,914,233			959,365,662			591,716,263			441,602,884
Cost of sales		25		(762,267,432	)		(597,228,204	)		(364,310,491	)		(283,893,959	)
Gross Profit				492,646,801			362,137,458			227,405,772			157,708,925
Other income		26		510,145			597,285			335,308			367,533
Distribution expenses		25		(120,516,668	)		(82,190,113	)		(57,325,640	)		(37,893,574	)
Administrative expenses		25		(205,356,222	)		(154,132,510	)		(106,184,609	)		(74,555,922	)
Other expenses		27		4,290,778			(5,432,584	)		8,727,714			(1,856,552	)
Other (loss) gains		29		(24,984,651	)		-			(24,984,651	)		-
Financial income		28		25,049,965			645,691			13,023,549			(3,261,956	)
Financial expenses		28		(28,114,849	)		(26,046,435	)		(14,487,217	)		(13,150,883	)
Share of profit (loss) of investments in associates and joint<br> ventures accounted for using the equity method		14.3		33,393			987,598			546,392			319,460
Foreign exchange differences				2,989,579			(8,122,098	)		5,559,699			(8,193,708	)
Income by indexation units				(36,514,926	)		(10,411,684	)		(20,983,249	)		(4,360,257	)
Net income before income taxes				110,033,345			78,032,608			31,633,068			15,123,066
Income tax expense		10.1		(49,876,605	)		(33,251,243	)		(6,482,641	)		(13,351,470	)
Net income				60,156,740			44,781,365			25,150,427			1,771,596
Net income attributable to
Owners of the controller				59,327,586			43,276,088			25,537,164			1,485,664
Non-controlling interests				829,154			1,505,277			(386,737	)		285,932
Net income				60,156,740			44,781,365			25,150,427			1,771,596
Earnings per Share, basic and diluted in ongoing operations
Earnings per Series A Share		21.5		59.69			43.54			25.69			1.49
Earnings per Series B Share		21.5		65.66			47.90			28.26			1.64

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

EMBOTELLADORAANDINA S.A. AND SUBSIDIARIES

ConsolidatedInterim Statements of Comprehensive Income

For the periodsended June 30, 2022 and 2021 (non-audited)

	01.01.2022			01.01.2021			04.01.2022			04.01.2021
	06.30.2022<br> <br>(non-audited)			06.30.2021<br> <br>(non-audited)			06.30.2022<br> <br>(non-audited)			06.30.2021<br> <br>(non-audited)
	CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Net income
Other Comprehensive Income:		60,156,740			44,781,365			25,150,427			1,771,596
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		(354,653	)		1,042,412			(512,260	)		2,029,217
Components of other comprehensive income that will be reclassified to net income for the period, before taxes
Gain (losses) from exchange rate translation differences		88,527,036			20,293,140			111,763,413			38,040,271
Gain (losses) from cash flow hedges		(69,934,335	)		52,932,004			(26,819,422	)		44,846,896
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		98,375			(281,451	)		140,929			(547,888	)
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		(20,945,433	)		(4,964,449	)		(22,799,872	)		(17,484,650	)
Income tax related to cash flow hedges
Other comprehensive income, total		19,910,551			(14,544,855	)		7,339,198			(11,962,777	)
Total comprehensive income		17,301,541			54,476,801			69,111,986			54,921,069
Total comprehensive income attributable to:		77,458,281			99,258,166			94,262,413			56,692,665
Equity holders of the controller
Non-controlling interests		75,915,547			97,518,476			93,471,023			56,739,916
Total comprehensive income		1,542,734			1,739,690			791,390			(47,251	)
Net income		77,458,281			99,258,166			94,262,413			56,692,665

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

EMBOTELLADORAANDINA S.A. AND SUBSIDIARIES

Consolidated InterimStatements of Changes in Equity

For the periods ended June 30, 2022 and2021 (non-audited)

		Other reserves
	Issued<br><br> capital	Reserves for<br><br> exchange rate<br><br> differences		Cash Flow<br><br> hedge reserve		Actuarial gains or<br><br> losses in<br><br> employee<br><br> benefits		Other<br><br> reserves	Total other<br><br> reserves	Retained<br><br> earnings		Controlling<br><br> equity		Non-controlling<br><br> interests		Total equity
	CLP (000’S)	CLP (000’S)		CLP (000’S)		CLP (000’S)		CLP (000’S)	CLP (000’S)	CLP (000’S)		CLP (000’S)		CLP (000’S)		CLP (000’S)
Opening<br> 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<br> in equity
Comprehensive<br> income
Earnings	-	-		-		-		-	-	59,327,586		59,327,586		829,154		60.156.740
Other<br> comprehensive income	-	66,864,153		(50,022,843	)	(253,349	)	-	16,587,961	-		16,587,961		713,580		17.301.541
Comprehensive<br> income	-	66,864,153		(50,022,843	)	(253,349	)	-	16,587,961	59,327,586		75,915,547		1,542,734		77.458.281
Dividends	-	-		-		-		-	-	(187,846,860	)	(187,846,860	)	(34,389	)	(187,881,249	)
Increase<br> (decrease) from other changes *	-	-		-		-		-	-	68,567,406		68,567,406		1,280,000		69,847,406
Total<br> changes in equity	-	66,864,153		(50,022,843	)	(253,349	)	-	16,587,961	(59,951,868	)	(43,363,907	)	2,788,345		(40,575,562	)
Ending<br> balance as of 06.30.2022	270,737,574	(374,715,935	)	580,855		(5,139,275	)	433,151,626	53,877,271	708,165,052		1,032,779,897		28,058,100		1,060,837,997
		Other reserves
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Issued<br><br>Capital	Reserves for<br><br>exchange rate<br><br>differences		Cash Flow<br><br>hedge reserve		Actuarial gains or<br><br>losses in<br><br>employee<br><br>benefits		Other<br><br>reserves	Total other<br><br>reserves		Retained<br><br>earnings		Controlling<br><br>equity		Non-controlling<br><br>interests		Total Equity
	CLP (000’s)	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Opening<br> balance as of 01.01.2021	270,737,574	(517,496,486	)	(24,719,533	)	(4,663,193	)	433,151,626	(113,727,586	)	654,171,126		811,181,114		20,379,477		831,560,591
Changes<br> in equity
Comprehensive<br> income
Earnings	-	-		-		-		-	-		43,276,088		43,276,088		1,505,277		44.781.365
Other<br> comprehensive income	-	15,103,229		38,386,258		752,901		-	54,242,388		-		54,242,388		234,413		54.476.801
Comprehensive<br> income	-	15,103,229		38,386,258		752,901		-	54,242,388		43,276,088		97,518,476		1,739,690		99.258.166
Dividends	-	-		-		-		-	-		(51,682,734	)	(51,682,734	)	(972,707	)	(52,655,441	)
Increase<br> (decrease) from other changes*	-	-		-		-		-	-		34,034,077		34,034,077		-		34,034,077
Total<br> Changes in equity	-	15,103,229		38,386,258		752,901		-	54,242,388		25,627,431		79,869,819		766,983		80,636,802
Ending<br> balance as of 06.30.2021	270,737,574	(502,393,257	)	13,666,725		(3,910,292	)	433,151,626	(59,485,198	)	679,798,557		891,050,933		21,146,460		912,197,393

*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 Interim Financial Statements.

EMBOTELLADORAANDINA S.A. AND SUBSIDIARIES

Consolidated Interim Statements of Direct CashFlows

For the periodsended June 30, 2022 and 2021 (non-audited)

			01.01.2022			01.01.2021
Cash flows provided by (used in) Operating Activities	NOTE		06.30.2022			06.31.2021
			(non-audited)			(non-audited)
Cash flows provided by Operating Activities			CLP (000’s)			CLP (000’s)
Receipts from the sale of goods and the rendering of services (including taxes)				1,883,094,610			1,343,145,795
Payments for Operating Activities
Payments to suppliers for goods and services (including taxes)				(1,339,068,937	)		(948,253,857	)
Payments to and on behalf of employees				(130,331,470	)		(102,710,008	)
Other payments for operating activities (value-added taxes on purchases, sales and others)				(193,095,255	)		(141,962,580	)
Interest payments				(34,220,979	)		(25,944,482	)
Interest received				19,492,895			2,629,546
Income tax payments				(49,406,334	)		(21,342,401	)
Other cash movements (tax on bank debits Argentina and others)				5,807,669			(7,665,782	)
Cash flows provided by (used in) Operating Activities				162,272,199			97,896,231
Cash flows provided by (used in) Investing Activities
Cash flows used in acquiring non-controlling interests				(1,920,000	)		-
Dividends received				-			-
Proceeds from sale of Property, plant and equipment				92,253			3,946
Purchase of Property, plant and equipment				(72,894,807	)		(26,097,737	)
Purchase of intangible assets				-			-
Payment on forward, term option and financial exchange agreements				-			38,006
Collection on forward, term, option and financial exchange agreements				(1,367,711	)		194,795
Other (payments) redemptions for (purchases) of financial instruments				114,798,151			(73,409,660	)
Other cash inflows (outflows)				(64,996	)		24,553
Net cash flows used in Investing Activities				38,642,890			(99,246,097	)
Cash Flows generated from (used in) Financing Activities
Proceeds (payments) from short term loans				5,512,361			-
Loan payments				(40,871	)		(397,241	)
Lease liability payments				(2,682,368	)		(1,818,032	)
Dividend payments by the reporting entity				(216,669,924	)		(51,682,734	)
Other cash inflows (outflows) (placement and payment of public debt)				(9,076,666	)		(4,798,025	)
Net cash flows (used in) generated by Financing Activities				(222,957,468	)		(58,696,032	)
Net increase in cash and cash equivalents before exchange differences				(22,042,379	)		(60,045,898	)
Effects of exchange differences on cash and cash equivalents				(5,679,474	)		(696,013	)
Effects of inflation in cash and cash equivalents in Argentina				(14,948,825	)		(3,707,067	)
Net increase (decrease) in cash and cash equivalents				(42,670,678	)		(64,448,978	)
Cash and cash equivalents – beginning of period		4		304,312,020			309,530,699
Cash and cash equivalents - end of period		4		261,641,342			245,081,721

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

EMBOTELLADORAANDINA S.A. AND SUBSIDIARIES

Notes to the Consolidated Interim FinancialStatements

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 registered under No. 00124 of the Securities Registry and 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 Chile expires in January 2023; in Argentina it expires in September 2022; in Brazil it expires in October 2022, and in Paraguay it is currently in the process of being renewed. 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 55.25% 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 July 26, 2022.

2 – BASIS OF PREPARATION OF CONSOLIDATEDFINANCIAL STATEMENTS AND APPLICATION OF ACCOUNTING CRITERIA

2.1 Accountingprinciples and basis of preparation

The Company’s Consolidated Interim Financial Statements for the periods ended June 30, 2022 and December 31, 2021, have been prepared in accordance with International Accounting Standard No. 34 (IAS34) as incorporated into the International Financial Reporting Standards (hereinafter "IFRS") issued by the International Accounting Standards Board (hereinafter "IASB").

These Consolidated Interim 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 Consolidated Interim Statements reflect the consolidated financial position of Embotelladora Andina S.A. and its Subsidiaries as of June 30, 2022 and December 31, 2021 and the results of operations for the periods between January 1 and June 30, 2022 and, and April 1 and June 30, 2022 and 2021 together with the statements of changes in equity and cash flows for the periods between January 1 and June 30, 2022 and 2021

These Consolidated Interim 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 Subsidiariesand 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 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
		06.30.2022						12.31.2021
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****Investmentsin 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 Financialreporting 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
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·	Operation in Argentina
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·	Operation in Paraguay
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2.5 Functionalcurrency and presentation currency

2.5.1****Functionalcurrency

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<br> 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 spot exchange rate 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 situation of our Argentine subsidiaries were converted to the closing exchange rate (ARS/CLP) at June 30, 2022, 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 June 2022 and from January to December 2021 was 35.76% and 50.21%, respectively.

2.5.2****Presentationcurrency

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:

a.	Translation of financial statements whose functional currency does not correspond to hyperinflationary<br>economies (Brazil and Paraguay)

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

·	The statement of financial position is translated<br>to the closing exchange rate at the financial statement date and the income statement is translated at the average monthly exchange rates,<br>the differences that result are recognized in equity under other comprehensive income.
·	Cash flow income statement are also translated<br>at average exchange rates for each transaction.
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·	In the case of the disposal of an investment<br>abroad, the component of other comprehensive income (OCI) relating to that investment is reclassified to the income statement.
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b.	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<br>rate at the financial statements date.
·	The income statement is translated at the closing exchange rate at the financial<br>statements date.
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·	The statement of cash flows is converted to the closing exchange rate at<br>the date of the financial statements.
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·	For the disposal of an investment abroad, the component of other comprehensive<br>income (OCI) relating to that investment is reclassified to the income statement.
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2.5.3****Exchangerates

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

** Date**
06.30.2022	177.94	7.44	0.136
12.31.2021	151.36	8.22	0.123
06.30.2021	145.48	7.60	0.108

All values are in US Dollars.

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
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
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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 for impairment. 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).

Regardless of what was stated in the previous paragraph, in the case of CGUs to which capital gains or intangible assets have been assigned with an indefinite useful life, 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<br>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 test are:

a)	Discount rate

The discount rate applied in the annual test carried out in 2021 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:


Argentina	27.2	%
Chile	7.1	%
Brazil	9.0	%
Paraguay	8.1	%

b)	Other assumptions

The financial projections to determine the net present value of the future cash flows of the CGUs are modeled based on the main historical variables and the respective budgets approved by the CGU. In this regard, a conservative growth rate is used, which reaches 4% for the carbonated beverage category and up to 5% for less developed categories such as juices and waters. Beyond the fifth year of projection, growth perpetuity rates are established per operation ranging from a real 0.4% 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<br>flows are discounted to bring them to present value
-	Perpetuity: Increase / Decrease of up to 30 bps in the rate to calculate the perpetual growth of<br>future cash flows
-	EBITDA margin: Increase / Decrease of 150 bps of EBITDA margin of operations, which is applied<br>per year for the projected periods, that is, for the years 2022-2026

In each sensitization scenario of the of the 3 variables mentioned above, no signs of impairment were observed for the Company's CGUs.

The Company performs the impairment analysis on an annual basis. As a result of the tests conducted as of December 31, 2021, no evidence of impairment was identified in any of the CGUs listed above, assuming conservative EBITDA margin projections and in line with market history.

Despite the deterioration in macroeconomic conditions experienced by the economies of the countries in which operations are carried out and as a result of the pandemic, 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.

No impairment indicators have been identified during the 2022 period.

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<br>with the objective of maintaining the financial assets to collect contractual cash flows that meet the SPPI criterion. This category includes<br>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<br>to pay all cash flows received without delay to a third party under a transfer agreement; and the Group (a) has substantially transferred<br>all risks and benefits of the asset, or (b) has not substantially transferred or retained all risks and benefits of the asset but<br>has transferred control of the asset.
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2.9.2	Financial Liabilities
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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<br>and financial liabilities designated in their initial recognition at fair value with changes in results. The losses or gains of liabilities<br>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<br>losses are recognized in the income statement when liabilities are disposed, as well as interest accrued in accordance with the effective<br>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<br>simultaneously.

2.10 Derivatives financial instruments andhedging 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 designatedas 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 notdesignated 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 derivatives implicitly 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 the date of these financial statements, the Company had no implicit 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<br>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 Interim 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	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”.

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.

2.17	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.

2.18	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.

2.19	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.

2.20	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.

2.21	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.

2.22	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 General Shareholders’ Meeting.

2.23	Critical accounting estimates and judgments

In preparing the Consolidated Interim 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.

2.23.1 Impairment of goodwill and intangibleassets 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 generating units are determined based on value in use calculations. The key variables used in the calculations include sales volumes and prices, discount rates, marketing expenses and other economic factors including inflation. 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 end 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.

2.23.2 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.

2.23.3 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.

2.23.4 Usefullife, 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.

2.23.5 Contingency liabilities

Provisions for litigation and other contingencies are recognized when the Company has a current obligation (legal or implied) 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.

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.

2.24 New Standards, Interpretations andAmendments to IFRS

2.24.1	New Standards, Interpretations and Amendments for annual periods beginning on or after January 1, 2022.

Amendments to IFRS which have been issued and are effective from January 1, 2022, are detailed below.

	Amendments	Date of application
IFRS 3	Reference to the Conceptual Framework	January 1, 2022
IAS 16	Property, Plant and Equipment — Proceeds before Intended Use	January 1, 2022
IAS 37	Onerous Contracts—Cost of Fulfilling a Contract	January 1, 2022

IFRS 3 Reference tothe Conceptual Framework

Amendment to IFRS 3, "Business Combinations" minor amendments were made to IFRS 3 to update the references to the Conceptual Framework for Financial Reporting, without changing the requirements for business combinations.

IAS 16 Property, Plantand Equipment — Proceeds before Intended Use

Amendment to IAS 16, "Property, plant and equipment" prohibits companies from deducting from the cost of property, plant and equipment the proceeds received from the sale of items produced while the company is preparing the asset for its intended use. The company must recognize such sales revenue and related costs in the respective annual profit or loss statement.

IAS 37 Onerous Contracts—Cost ofFulfilling a Contract

In May 2020, the IASB issued amendments to IAS 37 Provisions, Contingent Liabilities, and Contingent Assets to specify the costs an entity needs to include when assessing whether a contract is onerous, or it generates losses.

The amendment shall be effective for periods beginning on or after January 1, 2022. The amendment should be applied retrospectively to existing contracts at the beginning of the annual reporting period in which the entity first applies the amendment (date of initial application). Early application is permitted and must be disclosed.

The amendments are intended to provide clarity and help ensure consistent implementation of the standard. Entities that previously applied the incremental cost approach will see an increase in provisions to reflect the inclusion of costs directly related to contract activities, while entities that previously recognized contractual loss provisions using the guidance to the previous standard, IAS 11 Construction Contracts, should exclude the allocation of indirect costs from their provisions.

The Company assessed that the amendments described above do not have a significant impact.

2.24.2 New AccountingStandards, Interpretations and Amendments with effective application for annual periods beginning on or after January 1,2022.

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.

	Standards and Interpretations	Mandatory application date
IFRS 17	Insurance Contracts	January 1, 2023

IFRS 17 - Insurance Contracts

In May 2017, the IASB issued IFRS 17 InsuranceContracts, a new accounting standard for insurance contracts that covers recognition, measurement, presentation and disclosure. Once effective, it will replace IFRS 4 Insurance Contracts issued in 2005. The new rule applies to all types of insurance contracts, regardless of the type of entity issuing them, as well as certain guarantees and financial instruments with certain characteristics of discretionary participation. Some exceptions within the scope may be applied.

IFRS 17 will be effective for periods starting on or after January 1, 2023, with comparative figures required. Early application is permitted, provided that the entity applies IFRS 9 Financial Instruments, on or before the date on which IFRS 17 is first applied.

Amendments to IFRS that have been issued to become effective in the near future are detailed below.

	Amendments	Date of application
IAS 1	Disclosure of Accounting Policies	January 1, 2023
IAS 1	Classification of liabilities as current or non-current	January 1, 2024
IAS 12	Deferred taxes regarding assets and liabilities that arise from a single transaction	January 1, 2023
IAS 8	Definition of Accounting estimate	January 1, 2023

IAS 1 Presentation of Financial Statements – Disclosure of Accounting Policies

In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making materiality judgements, providing guidance and examples to help entities apply relative importance judgements to accounting policy disclosures.

Amendments have the purpose of helping entities provide disclosure on accounting policies that are more useful by:

·	Replacing the requirement for entities to disclose<br> “significant” accounting policies with the requirement to disclose its “material” accounting policies.
·	Include guidance on how entities apply the concept<br>of materiality indecision-making on the disclosure of accounting policies.
---	---

On assessing the relative importance of the accounting policy information, entities should consider both the size of the transaction as well as other events and conditions and the nature of these transaction.

The amendment is effective for annual periods beginning on January 1, 2023. Early application of IAS 1 amendments is allowed as long as it is disclosed.

IAS1 Presentation of Financial Statements - Classification of liabilities as current or non-current

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.

The amendment will be effective for annual periods beginning on January 1, 2024.

IAS 12 Deferred tax related to assets andliabilities arising from a single transaction

In May 2021, the IASB issued amendments to IAS 12, narrowing the scope of the initial recognition exception pursuant to IAS 12, so that it is no longer applied to transactions giving rise to equal amounts of taxable and deductible temporary differences.

The amendments clarify that when liability settlement payments are deductible for tax purposes, it is a judgement call (having considered the applicable tax legislation) if those deductions are attributable to tax effects on liabilities recognized in the financial statements (and interest expenses) or to the related asset component (and interest expenses). This judgment is important in determining if temporary differences exist in the initial recognition of the asset and liability.

Likewise, pursuant to the issued amendments, the exception in the initial recognition does not apply to transactions that, upon initial recognition, give rise to equal taxable and deductible temporary differences. It only applies when recognizing a lease asset and a lease liability (or a dismantling liability and a dismantling asset component) give rise to taxable and deductible temporary differences that are not equal. However, it is possible that the resulting deferred tax assets and liabilities may not be the same (e.g., if the entity cannot benefit from the tax deductions or if the tax rates applied are different from the taxable and deductible temporary differences). In those cases, an entity would need to account for the difference between the deferred tax asset and liability in the P&L.

The amendment will be effective for annual periods beginning on January 1, 2023.

IAS 8 Accounting Policies,Changes in Accounting Estimates and Errors – Definition of Accounting Estimates

In February 2021, the IASB issued amendments to IAS 8, incorporating a new definition for “accounting estimates”. The amendments clarify the distinction between changes to accounting estimates and changes to accounting policies and error correction. Also, they clarify how entities use input and measurement techniques to develop accounting estimates.

The amended standard clarifies that the effects of accounting estimates, resulting from a change in the input or a change in the measurement technique are considered as changes in accounting estimates, as long as these did not result from error corrections of previous periods. The previous definition of a change in accounting estimate specified that the changes in accounting estimates could result from new information or new developments. Therefore, said changes are not considered error corrections.

The amendment will be effective for annual periods beginning on January 1, 2023.

The Company will perform an impact assessment of the above described amendments once they become effective.

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<br> ended June 30, 2022	Operation<br> in<br><br> Chile			Operation<br> in<br><br> Argentina			Operation<br> in<br><br> Brazil			Operation<br> in<br><br> Paraguay			Inter-country<br><br> eliminations			Consolidated,<br><br> total
	CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Net sales		529,102,289			349,640,122			281,731,666			96,347,308			(1,907,152	)		1,254,914,233
Cost of sales		(348,920,310	)		(184,348,814	)		(178,633,522	)		(52,271,938	)		1,907,152			(762,267,432	)
Distribution expenses		(44,961,906	)		(48,352,062	)		(21,626,812	)		(5,575,888	)		-			(120,516,668	)
Administrative expenses		(82,833,695	)		(61,732,883	)		(46,369,464	)		(14,420,180	)		-			(205,356,222	)
Financial income		11,933,411			8,262,184			4,410,837			443,533			-			25,049,965
Financial<br> costs		(13,652,032	)		(244,151	)		(14,218,666	)		-			-			(28,114,849	)
Net financial<br> costs		(1,718,621	)		8,018,033			(9,807,829	)		443,533			-			(3,064,884	)
Share of entity in income of<br> associates accounted for using the equity method, total		865,562			-			(832,169	)		-			-			33,393
Income tax expense		(14,694,774	)		(22,727,068	)		(9,405,174	)		(3,049,589	)		-			(49,876,605	)
Oher income<br> (expenses)		(47,285,307	)		(15,286,906	)		8,624,005			239,133			-			(53,709,075	)
Net<br> income of the segment reported		(10,446,762	)		25,210,422			23,680,701			21,712,379			-			60,156,740
Depreciation and amortization		19,256,301			17,569,301			14,998,416			5,913,025			-			57,737,043
														-
Current assets		496,497,247			106,346,697			210,350,384			67,206,590			-			880,400,918
Non-current<br> assets		738,320,731			263,500,544			792,070,033			307,824,054			-			2,101,715,362
Segment<br> assets, total		1,234,817,978			369,847,241			1,002,420,417			375,030,644			-			2,982,116,280
Carrying amount in associates<br> and joint ventures accounted for using the equity method, total		53,914,805			-			44,632,684			-			-			98,547,489
Segment disbursements of non-monetary<br> assets		31,779,771			17,224,526			15,531,509			8,359,001			-			72,894,807
Current liabilities		231,352,852			114,667,927			117,819,869			29,908,332			-			493,748,980
Non-current<br> liabilities		793,556,315			25,527,536			589,246,922			19,198,530			-			1,427,529,303
Segment<br> liabilities, total		1,024,909,167			140,195,463			707,066,791			49,106,862			-			1,921,278,283
Cash flows (used in) provided<br> by in Operating Activities		138,267,063			5,277,946			10,974,636			7,752,554			-			162,272,199
Cash flows (used in) provided<br> by Investing Activities		79,842,388			(17,224,526	)		(15,531,509	)		(8,443,463	)		-			38,642,890
Cash flows (used in) provided<br> by Financing Activities		(226,434,024	)		5,076,226			(1,487,107	)		(112,563	)		-			(222,957,468	)

For the period<br> ended June 30, 2021	Operation<br> in<br><br> Chile			Operation<br> in<br><br> Argentina			Operation<br> in<br><br> Brazil			Operation<br> in <br><br>Paraguay			Inter-country<br><br><br> eliminations			Consolidated,<br><br><br> total
	CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Net sales		431,986,977			189,719,827			265,704,271			73,427,794			(1,473,207	)		959,365,662
Cost of sales		(274,152,349	)		(102,322,636	)		(183,319,077	)		(38,907,349	)		1,473,207			(597,228,204	)
Distribution expenses		(36,362,804	)		(26,499,002	)		(15,256,808	)		(4,071,499	)		-			(82,190,113	)
Administrative expenses		(68,325,612	)		(39,984,706	)		(34,135,444	)		(11,686,748	)		-			(154,132,510	)
Financial income		(4,809,787	)		2,455,515			2,800,941			199,022			-			645,691
Financial<br> costs		(14,115,019	)		(186,212	)		(11,745,204	)		-			-			(26,046,435	)
Net financial<br> costs		(18,924,806	)		2,269,303			(8,944,263	)		199,022			-			(25,400,744	)
Share of entity in income of<br> associates accounted for using the equity method, total		709,477			-			278,121			-			-			987,598
Income tax expense		(12,841,398	)		(11,916,937	)		(6,529,047	)		(1,963,861	)		-			(33,251,243	)
Oher income<br> (expenses)		(15,816,564	)		(4,697,955	)		(3,422,749	)		568,187			-			(23,369,081	)
Net<br> income of the segment reported		6,272,921			6,567,894			14,375,004			17,565,546			-			44,781,365
Depreciation and amortization		19,002,613			12,215,398			11,338,294			4,749,234			-			47,305,539
Current assets		548,145,645			57,218,961			144,626,078			51,498,661			-			801,489,345
Non-current<br> assets		642,972,817			160,993,587			664,267,298			236,503,247			-			1,704,736,949
Segment<br> assets, total		1,191,118,462			218,212,548			808,893,376			288,001,908			-			2,506,226,294
Carrying amount in associates<br> and joint ventures accounted for using the equity method, total		51,277,929			-			39,255,028			-			-			90,532,957
Segment disbursements of non-monetary<br> assets		2,083,807			8,952,201			9,147,466			5,914,263			-			26,097,737
Current liabilities		194,827,565			51,952,512			87,860,943			37,860,132			-			372,501,152
Non-current<br> liabilities		708,023,548			14,607,638			483,847,782			15,048,781			-			1,221,527,749
Segment<br> liabilities, total		902,851,113			66,560,150			571,708,725			52,908,913			-			1,594,028,901
Cash flows (used in) provided<br> by in Operating Activities		87,898,307			6,405,151			(8,499,784	)		12,092,557			-			97,896,231
Cash flows (used in) provided<br> by Investing Activities		(75,195,688	)		(9,147,466	)		(8,258,984	)		(6,643,959	)		-			(99,246,097	)
Cash flows (used in) provided<br> by Financing Activities		(57,023,001	)		(372,695	)		(1,194,102	)		(106,234	)		-			(58,696,032	)

4 – CASH AND CASH EQUIVALENTS

The composition of cash and cash equivalents is as follows:

By item	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Cash		487,422		503,687
Bank balances		113,137,003		94,472,637
Other fixed rate instruments		148,016,917		209,335,696
Cash and cash equivalents		261,641,342		304,312,020

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		12.31.2021
		CLP (000’s)
	15,318,224		13,640,823
	448,425		2,838,102
ARS	3,288,342		22,425,407
CLP	146,543,383		176,278,025
PYG	36,236,007		32,856,836
BRL	59,806,961		56,272,827
Cash and cash equivalents	261,641,342		304,312,020

All values are in US Dollars.

5 – OTHER CURRENTAND NON-CURRENT FINANCIAL ASSETS

The composition of other financial assets is as follows:

	Balance
	Current				Non-current
Other financial assets	06.30.2022		12.31.2021		06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Financial assets measured at amortized cost (1)		79,232,016		194,509,044		3,478,322		1,216,865
Financial assets at fair value (2)		2,124,742		961,705		266,398,672		281,337,127
Other financial assets measured at amortized cost (3)		-		-		17,243,558		14,078,020
Total		81,356,758		195,470,749		287,120,552		296,632,012
(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”<br>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	06.30.2022		12.31.2021		06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Prepaid expenses		8,006,449		7,860,112		1,201,272		1,254,775
Tax credit remainder (1)		2,065,908		2,022,493		41,279,894		52,746,937
Judicial deposits		-		-		17,914,062		15,259,876
Others (2)		19,061,211		4,836,499		1,870,251		1,600,028
Total		29,133,568		14,719,104		62,265,479		70,861,616
(1)	(a) In November 2006, Rio de Janeiro Refrescos Ltda.<br>("RJR") filed a court order No. 0021799-23.2006.4.02.5101 seeking recognition of the right to exclude ICMS (Tax on Commerce<br>and Services) from the PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) calculation<br>base, as well as recognition of the right to obtain reimbursement of amounts unduly collected since November 14, 2001, duly restated<br>using the Selic interest rate. On May 20, 2019, the ruling favoring RJR became final, allowing the recovery of amounts overpaid<br>from November 14, 2001 to August 2017. It is worth noting that in September 2017, RJR had already obtained a Security<br>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 109,077 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.

The payment of income tax occurs when liquidating the credit, therefore the respective deferred tax liability recorded was CLP 26,335 million (BRL 148 million). Amounts already offset until June 30, 2022 were CLP 79,895 million (BRL 449 million).

Companhia de Bebidas Ipiranga ("CBI") acquired in September 2013, also filed a court order No. 0014022-71.2000.4.03.6102 in order to recognize the same issue as the one previously described for RJR. In September 2019, the ruling favoring CBI became final, allowing the recovery of the amounts overpaid from September 12, 1989 to December 1, 2013 (date when CBI was incorporated by RJR). CBI's credit will be generated in the name of RJR, however, pursuant to the contractual clause ("Subscription Agreement for Shares and Exhibits"), as soon as collected by RJR, this payment should be immediately paid to former CBI shareholders (supervention favoring former CBI shareholders). Based on supporting documents found, for the August 1993-November 2013 period, the amount of credits related to this process have been calculated and totaled CLP 29,182 million (BRL 164 million, of which BRL 80 million corresponds to capital and BRL 84 million correspond to interest and monetary restatement), from this amount, CLP 1,245 million (BRL 7 million) must be deducted from indirect taxes, thus generating an account payable to former shareholders for CLP 27,758 million (CLP 23,612 million at December 2021) (BRL 156 billion) and a government receivables related to credits for that same amount. It is worth mentioning that for the September 1989-July 1993 period, the Company did not account the credit due to the lack of supporting documents.

In addition, RJR has an associate called Sorocaba Refrescos SA ("Sorocaba"), where it has a 40% shareholding in the capital, which also filed a court order seeking recognition of the right to the same issue as RJR's action. On June 13, 2019, the ruling favoring Sorocaba became final, allowing the recovery of the amounts overpaid from July 5, 1992 until the date on which the decision became final. As of December 31, 2021, the impacts were recognized in RJR's result from its ownership in Sorocaba, totaling CLP 8,719 million (BRL 49 million, of which BRL 28 million correspond to capital and BRL 21 million correspond to interest and monetary restatement). In addition, the company recognized indirect costs (attorneys' fees, consulting, auditing, indirect taxes, and other obligations) resulting from the recognition of the right acquired in court, totaling CLP 1,779 million (CLP 1,513 million at December 2021) (BRL 10 million).

Income tax payment occurs upon credit settlement, with that the respective deferred tax liability recorded was CLP 2,313 million (CLP 1,967 million at December 2021) (BRL 13 million).

(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 receivables is as follows:

	Current				Non-current
Trade debtors and other accounts receivable, Net	06.30.2022		12.31.2021		06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Trade debtors		174,891,224		205,466,469		50,523		42,726
Other debtors		59,556,661		55,281,501		329,129		83,738
Other accounts receivable		2,917,074		4,742,656		-		-
Total		237,364,959		265,490,626		379,652		126,464
	Current				Non-current
---	---	---	---	---	---	---	---	---
Trade debtors and other accounts receivable, Gross	06.30.2022		12.31.2021		06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Trade debtors		180,237,566		210,175,775		50,523		42,726
Other debtors		59,556,661		55,281,501		329,129		83,738
Other accounts receivable		3,033,649		4,744,721		-		-
Total		242,827,876		270,201,997		379,652		126,464

The stratification of the portfolio is as follows:

Current trade debtors without impairment impact	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Less than one month		166,462,250		195,325,587
Between one and three months		3,961,416		6,843,836
Between three and six months		3,048,420		1,808,425
Between six and eight months		2,134,493		2,235,866
Older than eight months		4,681,510		4,004,787
Total		180,288,089		210,218,501

The Company has approximately 282,200 clients, which may have balances in the different sections of the stratification. The number of clients is distributed geographically with 67,100 in Chile, 87,400 in Brazil, 65,800 in Argentina and 61,900 in Paraguay.

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

	06.30.2022			12.31.2021
	CLP (000’s)			CLP (000’s)
Opening balance		4,711,371			6,795,663
Increase (decrease)		366,155			1,697,887
Provision reversal		(315,355	)		(3,832,220	)
Increase (decrease) for changes of foreign currency		700,746			50,041
Sub – total movements		751,546			(2,084,292	)
Ending balance		5,462,917			4,711,371

8 – INVENTORIES

The composition of inventories is detailed as follows:

Details	06.30.2022			12.31.2021
	CLP (000’s)			CLP (000’s)
Raw materials (1)		101,447,937			86,914,422
Finished goods		102,558,982			81,461,680
Spare parts and supplies		25,901,127			23,063,797
Work in progress		238,395			109,467
Other inventories		4,826,260			3,358,474
Obsolescence provision (2)		(3,957,660	)		(3,557,634	)
Total		231,015,041			191,350,206

The cost of inventory recognized as cost of sales amounts to CLP 649,770,567 thousand and CLP 521,023,286 thousand as of June 30, 2022 and 2021, 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 ASSETSAND LIABILITIES

The composition of current tax accounts receivable is the following:

Tax assets	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Tax credits		31,415,951		10,224,368
Total		31,415,951		10,224,368

The composition of current tax accounts payable is the following:

	Current				Non-current
Tax liabilities	06.30.2022		12.31.2021		06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Income tax expense		17,372,542		30,512,787		-		-
Total		17,372,542		30,512,787		-		-

10 – INCOME TAX EXPENSE AND DEFERRED TAXES

10.1	Income tax expense

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

Details	06.30.2022			06.30.2021
	CLP (000’s)			CLP (000’s)
Current income tax expense		(31,060,903	)		(23,465,092	)
Current tax adjustment previous period		353,624			1,762,417
Foreign dividends tax withholding expense		(8,089,395	)		(4,541,520	)
Other current tax expense (income)		-			-
Current income tax expense		(38,796,674	)		(26,244,195	)
Expense (income) for the creation and reversal of temporary differences of deferred tax and others		(11,079,931	)		(7,007,048	)
Expense (income) for deferred taxes		(11,079,931	)		(7,007,048	)
Total income tax expense		(49,876,605	)		(33,251,243	)

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

Income taxes	06.30.2022			06.30.2021
	CLP (000’s)			CLP (000’s)
Current taxes
Foreign		(29,291,364	)		(16,397,033	)
National		(9,505,310	)		(9,847,162	)
Current tax expense		(38,796,674	)		(26,244,195	)
Deferred taxes
Foreign		(5,890,467	)		(4,012,811	)
National		(5,189,464	)		(2,994,237	)
Deferred tax expense		(11,079,931	)		(7,007,048	)
Income tax expense		(49,876,605	)		(33,251,243	)

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	06.30.2022			06.30.2021
	CLP (000’s)			CLP (000’s)
Net income before taxes		110,033,345			78,032,608
Tax expense at legal rate (27.0%)		(29,709,003	)		(21,068,804	)
Effect of tax rate in other jurisdictions		(1,941,475	)		377,928
Permanent differences:
Non-taxable revenues		9,263,858			4,958,735
Non-deductible expenses		(2,089,017	)		(1,253,304	)
Tax effect on excess tax provision in previous periods		(98,817	)		242,676
Subsidiaries tax withholding expense and other legal tax debits and credits		(25,302,151	)		(16,508,474	)
Adjustments to tax expense		(18,226,127	)		(12,560,367	)
Tax expense at effective rate		(49,876,605	)		(33,251,243	)
Effective rate		45.3	%		42.6	%

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

	Rate
Country	2022			2021
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:

	06.30.2022						12.31.2021
Temporary differences	Assets			Liabilities			Assets			Liabilities
	CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Property, plant and equipment		6,222,078			(52,828,275	)		5,944,185			(52,435,301	)
Obsolescence provision		1,819,046			-			1,696,051			-
ICMS exclusion credit		-			(1,435,635	)		-			(4,925,230	)
Employee benefits		2,625,158			-			3,163,172			(115,828	)
Provision for severance indemnity		273,346			(392,104	)		271,789			(271,367	)
Tax loss carry forwards (1)		6,766,632			-			4,292,863			(698	)
Tax goodwill Brazil		-			(6,798,936	)		-			(3,126,125	)
Contingency provision		30,866,843			-			30,216,275			-
Foreign Exchange differences (2)		11,650,627			-			7,165,844			-
Allowance for doubtful accounts		705,819			-			638,484			-
Coca-Cola incentives (Argentina)		1,231,661			-			-			-
Assets and liabilities for placement of bonds		-			(642,994	)		-			(2,081,271	)
Financial expense		-			(2,153,937	)		-			-
Lease liabilities		1,961,304						1,781,922			-
Inventories		360,086						652,669			-
Distribution rights					(162,353,135	)		-			(151,228,739	)
Hedge derivatives		-			-			-			-
Prepaid income		6,643,020			(107,668	)		1,711,461			-
Spare parts		142,754			(7,285,194	)		-			(3,374,376	)
Intangibles		-			(5,367,340	)		130			(5,440,229	)
Others		3,413,799			(5,261,504	)		4,194,697			(5,326,478	)
Subtotal		74,682,173			(244,626,720	)		61,729,542			(228,325,642	)
Offsetting of deferred tax assets/(liabilities)		(71,933,985	)		71,933,985			(59,870,815	)		59,870,815
Total assets and liabilities net		2,748,188			(172,692,737	)		1,858,727			(168,454,827	)
(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<br>in foreign currency that for tax purposes are recognized when incurred.

Deferred tax account movements are as follows:

Movement	06.30.2022			12.31.2021
	CLP (000’s)			CLP (000’s)
Opening balance		166,596,100			151,743,678
Increase (decrease) in deferred tax		(8,463,255	)		4,507,688
Increase (decrease) due to foreign currency translation(*)		11,811,704			10,344,734
Total movements		3,348,449			14,852,422
Ending balance		169,944,549			166,596,100

(*) 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	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Construction in progress		57,981,597		56,280,594
Land		109,065,285		101,286,107
Buildings		345,028,803		306,300,748
Plant and equipment		701,908,186		613,537,377
Information technology equipment		33,229,206		29,470,242
Fixed installations and accessories		68,751,334		61,264,172
Vehicles		70,673,214		56,346,552
Leasehold improvements		381,116		322,036
Rights of use (1)		76,487,722		69,616,828
Other properties, plant and equipment (2)		451,605,617		383,403,363
Total Property, plant and equipment, gross		1,915,112,080		1,677,828,019
Accumulated depreciation of Property, plant and equipment	06.30.2022			12.31.2021
---	---	---	---	---	---	---
	CLP (000’s)			CLP (000’s)
Buildings		(117,396,246	)		(102,957,623	)
Plant and equipment		(508,126,959	)		(443,885,822	)
Information technology equipment		(27,263,247	)		(23,857,025	)
Fixed installations and accessories		(45,175,809	)		(38,165,051	)
Vehicles		(44,823,309	)		(37,161,952	)
Leasehold improvements		(269,080	)		(208,747	)
Rights of use (1)		(53,276,110	)		(45,962,853	)
Other properties, plant and equipment (2)		(316,617,241	)		(269,249,819	)
Total accumulated depreciation		(1,112,948,001	)		(961,448,892	)
Total Property, plant and equipment, net		802,164,079			716,379,127

(1) For adoption of IFRS 16, See details of underlying assets in Note 11.1

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

Other Property, plant and equipment, net	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Bottles		40,867,302		36,546,377
Marketing and promotional assets (market assets)		62,886,504		55,210,620
Other Property, plant and equipment		31,234,570		22,396,547
Total		134,988,376		114,153,544

11.1	Movements

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

	Construction<br><br><br> in progress			Land		Buildings,<br> net			Plant<br> and<br><br> equipment,<br><br> net			IT<br><br><br> equipment,<br><br> net			Fixed<br><br><br> facilities and<br><br> accessories,<br><br> net			Vehicles,<br> net			Leasehold<br><br><br> improvements,<br><br> net			Others			Rights-of-use,<br><br><br> net (1)			Property,<br> plant <br><br>and equipment,<br><br> net
	CLP (000’s)			CLP (000’s)		CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Opening<br> 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		25,569,538			-		44			5,300,938			264,898			-			567,745			-			25,949,353			-			57,652,516
Right-of use additions		-			-		-			-			-			-			-			-			-			2,497,500			2,497,500
Disposals		-			-		(18,069	)		(53,913	)		(2,170	)		-			(343	)		-			(1,220,935	)		(298,369	)		(1,593,799	)
Transfers between items of Property,<br> plant and equipment		(31,076,381	)		-		4,767,699			10,339,890			632,332			361,071			6,193,142			43,099			8,739,148			-			-
Right-of-use transfers		-			-		-			-			-			-			-			-			-			-			-
Depreciation expense		-			-		(4,153,655	)		(17,467,200	)		(1,183,991	)		(1,753,145	)		(2,625,450	)		(33,040	)		(23,569,878	)		-			(50,786,359	)
Amortization		-			-		-			-			-			-			-			-			-			(4,827,669	)		(4,827,669	)
Increase (decrease) due to foreign<br> currency translation differences		7,295,448			7,779,178		23,620,936			20,099,350			647,479			1,868,477			2,464,167			17,289			14,103,390			2,190,039			80,085,753
Other increase<br> (decrease) (2)		(87,602	)		-		72,477			5,910,607			(5,806	)		1			66,044			(28,601	)		(3,166,246	)		(3,864	)		2,757,010
Total<br> movements		1,701,003			7,779,178		24,289,432			24,129,672			352,742			476,404			6,665,305			(1,253	)		20,834,832			(442,363	)		85,784,952
Ending balance al 06.30.2022		57,981,597			109,065,285		227,632,557			193,781,227			5,965,959			23,575,525			25,849,905			112,036			134,988,376			23,211,612			802,164,079
(1)	Right of use assets is composed as follows:
---	---
Right-of-use	Gross asset		Accumulated<br><br> depreciation			Net asset
---	---	---	---	---	---	---	---
	CLP (000’s)		CLP (000’s)			CLP (000’s)
Constructions and buildings		6,739,588		(3,014,757	)		3,724,831
Plant and Equipment		48,216,131		(33,412,583	)		14,803,548
IT Equipment		1,302,269		(1,029,185	)		273,084
Motor vehicles		10,036,445		(5,836,647	)		4,199,798
Others		10,193,290		(9,982,939	)		210,351
Total		76,487,723		(53,276,111	)		23,211,612

Lease liabilities interest expenses at the closing of the period reached CLP 1,024,450 thousand.

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

	Construction<br><br><br> in progress			Land			Buildings,<br> net			Plant<br> and<br><br> equipment,<br><br> net			IT<br><br><br> equipment,<br><br> net			Fixed<br><br><br> facilities and<br><br> accessories,<br><br> net			Vehicles,<br> net			Leasehold<br><br><br> improvements,<br><br> net			Others			Rights-of-use,<br><br><br> net (1)			Property,<br> plant<br><br> and equipment,<br><br> net
	CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Opening<br> balance at 01.01.2021		34,194,083			94,321,726			180,916,878			145,790,203			4,878,307			17,647,892			16,410,784			59,142			90,020,253			21,337,277			605,576,545
Additions		61,100,226			-			3,708,881			19,025,057			1,428,080			12,068			171,420			8,738			47,426,736			-			132,881,206
Right-of use additions		-			-			-			-			-			-			-			-			-			9,070,997			9,070,997
Disposals		(74,476	)		-			(276,312	)		(277,845	)		(3,896	)		(11	)		(9,573	)		-			(3,156,795	)		-			(3,798,908	)
Transfers between items of Property,<br> plant and equipment		(39,845,790	)		-			4,370,826			21,182,049			751,603			606,279			4,771,885			88,345			8,074,803			-			-
Right-of-use transfers		-			-			-			-			-			-			-			-			-			-			-
Depreciation expense		-			-			(7,862,888	)		(32,058,439	)		(2,219,235	)		(3,700,948	)		(4,054,092	)		(51,774	)		(43,651,397	)		-			(93,598,773	)
Amortization		-			-			-			-			-			-			-			-			-			(8,386,063	)		(8,386,063	)
Increase (decrease) due to foreign<br> currency translation differences		6,513,216			6,964,382			21,941,520			23,364,406			658,167			3,080,061			2,264,353			8,840			16,399,966			1,759,346			82,954,257
Other increase<br> (decrease) (2)		(5,606,665	)		(1	)		544,220			(7,373,876	)		120,191			5,453,780			(370,177	)		(2	)		(960,022	)		(127,582	)		(8,320,134	)
Total<br> movements		22,086,511			6,964,381			22,426,247			23,861,352			734,910			5,451,229			2,773,816			54,147			24,133,291			2,316,698			110,802,582
Ending balance al 12.31.2021		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
(1)	Right of use assets is composed as follows:
---	---
Right-of-use	Gross asset		Accumulated<br><br> depreciation			Net asset
---	---	---	---	---	---	---	---
	CLP (000’s)		CLP (000’s)			CLP (000’s)
Constructions and buildings		4,042,921		(2,140,590	)		1,902,331
Plant and Equipment		43,450,544		(27,325,328	)		16,125,216
IT Equipment		997,458		(750,993	)		246,465
Motor vehicles		12,171,762		(7,065,299	)		5,106,463
Others		8,954,143		(8,680,643	)		273,500
Total		69,616,828		(45,962,853	)		23,653,975
(2)	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:
					06.30.2022				12.31.2021
---	---	---	---	---	---	---	---	---	---	---	---	---
Taxpayer ID	Company	Relationship	Country	Currency	Current		Non-current		Current		Non-current
					CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
96.891.720-K	Embonor S.A.	Shareholder related	Chile	CLP		4,421,767		-		3,870,800		-
96.714.870-9	Coca-Cola de Chile S.A.	Shareholder	Chile	CLP		12,592		115,865		62,756		98,941
Foreign	Coca-Cola de Argentina	Director related	Argentina	ARS		-		-		2,490,194		-
Foreign	Alimentos de Soja S.A.U.	Shareholder related	Argentina	ARS		329,671		-		166,813		-
96.517.210-2	Embotelladora Iquique S.A.	Shareholder related	Chile	CLP		366,100		-		155,264		-
86.881.400-4	Envases CMF S.A.	Associate	Chile	CLP		1,281,682		-		1,266,871		-
77.526.480-2	Comercializadora Nova Verde	Common shareholder	Chile	CLP		1,590,309		-		934,350		-
76.572.588-7	Coca-Cola del Valle New Ventures<br> S.A.	Associate	Chile	CLP		382,107		-		371,907		-
76.140.057-6	Monster	Associate	Chile	CLP		80,280		-		87,865		-
79.826.410-9	Guallarauco	Associate	Chile	CLP		8,791		-		12,230		-
Total						8,473,299		115,865		9,419,050		98,941

12.2	Accounts payable:
					06.30.2022		12.31.2021
---	---	---	---	---	---	---	---	---
Taxpayer ID	company	Relationship	Country	Currenty	Current	Non-current	Current	Non-current
					M	M	M	M
96.714.870-9	Coca-Cola de Chile<br> S.A.	Shareholder	Chile	CLP
Extranjera	Recofarma do Industrias Amazonas<br> Ltda.	Shareholder related	Brasil	BRL
86.881.400-4	Envases CMF S.A.	Associate	Chile	CLP
Extranjera	Ser. y Prod. para Bebidas Refrescantes<br> S.R.L.	Shareholder	Argentina	ARS
Extranjera	Leão Alimentos e Bebidas<br> Ltda.	Associate	Brasil	BRL
Extranjera	Monster Energy Brasil Com de<br> Bebidas Ltda.	Shareholder related	Brasil	BRL
76.572.588-7	Coca Cola del Valle New Ventures<br> S.A.	Associate	Chile	CLP
96.891.720-K	Embonor S.A.	Shareholder related	Chile	CLP
Extranjera	Alimentos de Soja S.A.U.	Shareholder related	Argentina	ARS
77.526.480-2	Comercializadora Nova Verde	Common shareholder	Chile	CLP
Extranjera	Monster Energy Argentina S.A.	Shareholder related	Argentina	PYG
Extranjera	Monster Energy Company –<br> EEUU	Shareholder related	Argentina	PYG
Extranjera	Coca-Cola<br> Company	Shareholder	Paraguay	PYG
Total

All values are in US Dollars.

12.3	Transactions:
Taxpayer ID	Company	Relationship	Country	Transaction<br> description	Currency	Accumulated<br><br> 06.30.2022		Accumulated<br><br> 12.31.2021
---	---	---	---	---	---	---	---	---	---
						CLP (000’s)		CLP (000’s)
96.714.870-9	Coca-Cola<br> de Chile S.A.	Shareholders	Chile	Purchase of concentrate	CLP		97,374,405		M$
96.714.870-9	Coca-Cola<br> de Chile S.A.	Shareholders	Chile	Purchase<br> of advertising services	CLP		-		174,892,744
96.714.870-9	Coca-Cola<br> de Chile S.A.	Shareholders	Chile	Water source<br> lease	CLP		3,403,071		3,290,184
96.714.870-9	Coca-Cola<br> de Chile S.A.	Shareholders	Chile	Sale of<br> raw materials and others	CLP		3,901,668		4,727,676
96.714.870-9	Coca-Cola<br> de Chile S.A.	Shareholders	Chile	Minimum<br> dividend	CLP		-		1,720,061
86.881.400-4	Envases<br> CMF S.A.	Associate	Chile	Purchase of containers	CLP		11,451,237		35,474
86.881.400-4	Envases<br> CMF S.A.	Associate	Chile	Purchase<br> of raw materials	CLP		14,751,648		17,713,063
86.881.400-4	Envases<br> CMF S.A.	Associate	Chile	Purchase of caps	CLP		-		24,883,194
86.881.400-4	Envases<br> CMF S.A.	Associate	Chile	Purchase<br> of services and others	CLP		686,908		153,142
86.881.400-4	Envases<br> CMF S.A.	Associate	Chile	Sale of<br> services and others	CLP		13,122		1,325,941
86.881.400-4	Envases<br> CMF S.A.	Associate	Chile	Purchase of packaging	CLP		4,518,388		1,430
86.881.400-4	Envases<br> CMF S.A.	Associate	Chile	Sale of<br> packaging/raw materials	CLP		7,784,106		7,625,273
93.281.000-K	Coca-Cola<br> Embonor S.A.	Common shareholder	Chile	Sale of<br> finished products	CLP		33,729,425		11,939,711
93.281.000-K	Coca-Cola<br> Embonor S.A.	Common shareholder	Chile	Sale of<br> services and others	CLP		67,977		59,018,653
93.281.000-K	Coca-Cola<br> Embonor S.A.	Common shareholder	Chile	Sale of<br> inputs and materials	CLP		252,835		359,739
96.891.720-K	Embonor<br> S.A.	Shareholder related	Chile	Minimum<br> dividend	CLP		-		523,958
96.891.720-K	Embonor<br> S.A.	Shareholder related	Chile	Sale of<br> fixed asset	CLP		-		339,562
96.891.720-K	Embonor<br> S.A.	Shareholder related	Chile	Dividend<br> distribution	CLP		-		357,000
96.517.310-2	Embotelladora<br> Iquique S.A.	Shareholder related	Chile	Sale of<br> finished products	CLP		2,422,359		541,188
89.996.200-1	Envases<br> del Pacífico S.A.	Director related	Chile	Purchase<br> of inputs and materials	CLP		173,626		4,220,323
94.627.000-8	Parque Arauco<br> S.A.	Director related	Chile	Lease of space	CLP		101,981		265,503
Foreign	Recofarma<br> do Indústrias Amazonas Ltda.	Shareholder related	Brazil	Purchase of concentrate	BRL		44,083,469		69,151
Foreign	Recofarma<br> do Indústrias Amazonas Ltda.	Shareholder related	Brazil	Reimbursement<br> and other purchases	BRL		26		69,785,833
Foreign	Serv. y<br> Prod. para Bebidas Refrescantes S.R.L.	Shareholder related	Argentina	Purchase of concentrate	ARS		76,084,692		100,072
Foreign	Serv. y<br> Prod. para Bebidas Refrescantes S.R.L.	Shareholder related	Argentina	Advertising<br> rights, prizes and other	ARS		2,188,034		129,275,444
Foreign	Serv. y<br> Prod. para Bebidas Refrescantes S.R.L.	Shareholder related	Argentina	Advertising<br> participation	ARS		-		3,230,351
Foreign	KAIK Participações	Associate	Brazil	Reimbursement<br> and other purchases	BRL		39,508		5,201,881
Foreign	Leão<br> Alimentos e Bebidas Ltda.	Associate	Brazil	Purchase of products	BRL		878,365		21,180
Foreign	Sorocaba<br> Refrescos S.A.	Associate	Brazil	Purchase of products	BRL		17,726		293,677
89.862.200-2	Latam Airlines<br> Group S.A.	Director related	Chile	Sale of products	CLP		405,335		2,667,326
89.862.200-2	Latam Airlines<br> Group S.A.	Director related	Chile	Purchase of products	CLP		-		269,688
76.572.588-7	Coca-Cola<br> Del Valle New Ventures SA	Associate	Chile	Sale of<br> services and others	CLP		235,345		18,695
76.572.588-7	Coca-Cola<br> Del Valle New Ventures SA	Associate	Chile	Purchase<br> of services and others	CLP		2,038,364		442,566
Foreign	Alimentos<br> de Soja S.A.U.	Shareholder related	Argentina	Payment<br> of commissions and services	ARS		2,057,939		4,436,600
Foreign	Alimentos<br> de Soja S.A.U.	Shareholder related	Argentina	Purchase of products	ARS		889,877		2,973,907
Foreign	Alimentos<br> de Soja S.A.U.	Shareholder related	Argentina	Marketing<br> services	ARS		52,086		11,658
Foreign	Trop Frutas<br> do Brasil Ltda.	Associate	Brazil	Purchase of products	BRL		130,689		-
77526480-2	Comercializadora<br> Novaverde S.A.	Common shareholder	Chile	Sale of<br> raw materials	CLP		30,058		2,736,529
77526480-2	Comercializadora<br> Novaverde S.A.	Common shareholder	Chile	Sale of<br> finished products	CLP		5,800,229		6,210
77526480-2	Comercializadora<br> Novaverde S.A.	Common shareholder	Chile	Sale of<br> services and others	CLP		526		8,937,506
77526480-2	Comercializadora<br> Novaverde S.A.	Common shareholder	Chile	Purchase<br> of raw materials	CLP		12,383,863		11,183
77526480-2	Comercializadora<br> Novaverde S.A.	Common shareholder	Chile	Purchase<br> of finished products	CLP		128,222		-
77526480-2	Comercializadora<br> Novaverde S.A.	Common shareholder	Chile	Advertising	CLP		247,374		-
77526480-2	Comercializadora<br> Novaverde S.A.	Common shareholder	Chile	Cooling<br> equipment maintenance	CLP		880,826		-
96.633.550-5	Sinea S.A.	Director related	Chile	Purchase<br> of raw materials	CLP		-		4,519,948
97.036.000-K	Banco Santander<br> Chile.	Director/Manager/Executive	Chile	Purchase of services	CLP		783		2,294,594
Foreign	Monster<br> Energy Brasil Comercio de Bebidas Ltda	Affiliated company	Brazil	Purchase of products	BRL		1,179,090		1,852,076

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	06.30.2022		06.30.2021
	CLP (000’s)		CLP (000’s)
Executive wages, salaries and benefits		5,390,138		4,515,796
Director allowances		780,000		736,760
Total		6,170,138		5,252,556

13 – CURRENT AND NON-CURRENT EMPLOYEE BENEFITS

Employee benefits are detailed as follows:

Description	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Accrued vacation		20,333,512		18,630,043
Participation in profits and bonuses		10,673,155		15,538,771
Severance indemnity		16,032,957		14,982,928
Total		47,039,624		49,151,742
	CLP (000’s)		CLP (000’s)
Current		32,118,800		35,012,072
Non-current		14,920,824		14,139,670
Total		47,039,624		49,151,742
13.1	Severance indemnities
---	---

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

Movements	06.30.2022			12.31.2021
	CLP (000’s)			CLP (000’s)
Opening balance		14,982,928			14,086,575
Service costs		651,655			(8,917	)
Interest costs		945,804			1,672,491
Actuarial variations		(299,872	)		1,216,808
Benefits paid		(247,558	)		(1,984,029	)
Total		16,032,957			14,982,928

13.1.1	Assumptions

The actuarial assumptions used are detailed as follows:

Assumptions	06.30.2022
Discount rate		2.30%	2.30%
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	06.30.2022		06.30.2021
	CLP (000’s)		CLP (000’s)
Wages and salaries		129,449,070		95,393,704
Employee benefits		30,404,445		22,549,375
Severance benefits		3,207,465		1,806,250
Other personnel expenses		10,080,259		8,152,544
Total		173,141,239		127,901,873

14 – INVESTMENTSIN 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<br><br> interest
TAXPAYER ID	Name	Country	currency	06.30.2022		12.31.2021		06.30.2022			12.31.2021
86.881.400-4	Envases CMF S.A. (1)	Chile	CLP		23,027,197		21,863,790		50.00	%		50.00	%
Foreign	Leão Alimentos e Bebidas Ltda. (2)	Brazil	BRL		12,497,459		11,359,597		10.26	%		10.26	%
Foreign	Kaik Participações Ltda. (2)	Brazil	BRL		1,344,525		1,107,007		11.32	%		11.32	%
Foreign	SRSA Participações Ltda.	Brazil	BRL		60,212		51,615		40.00	%		40.00	%
Foreign	Sorocaba Refrescos S.A.	Brazil	BRL		28,537,568		24,258,224		40.00	%		40.00	%
Foreign	Trop Frutas do Brasil Ltda. (2)	Brazil	BRL		2,470,346		2,192,920		7.52	%		7.52	%
76.572.588.7	Coca-Cola del Valle New Ventures S.A.	Chile	CLP		30,610,182		30,656,041		35.00	%		35.00	%
Total					98,547,489		91,489,194
(1)	In Envases CMF S.A., regardless of the percentage of ownership interest, it was determined that no controlling interest was held,<br>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<br>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			12.31.2021
	CLP (000’s)		CLP (000’s)
Opening balance		91,489,194		87,956,354
Dividends received		-		(3,236,541	)
Share in operating income		421,891		4,041,118
Amortization unrealized income in associates		-		(435,884	)
Other increase (decrease) in investments in associates+		6,636,404		3,164,147
Ending balance		98,547,489		91,489,194

*Mainly due to foreign exchange rates

The main movements are explained below:

·	Dividends declared in 2021 correspond to Sorocaba<br>Refrescos S.A., Envases CMF S.A. and Coca-Cola del Valle New Ventures S.A.
·	In 2021 it was identified that for the brand<br>Verde Campo (Trop Frutas do Brasil Ltda.) the recoverable value would be R$ 21.8 million, an amount below the book value recorded, proportionally<br>impacting the result of Andina Brazil according to its participation (for more information see Note 2.8).
---	---
14.3	Reconciliation of share of profit in investments in associates:
---	---
Description	06.30.2022			06.30.2021
---	---	---	---	---	---	---
	CLP (000’s)			CLP (000’s)
Equity value on income of associates		421,891			1,438,929
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)		(388,498	)		(232,433	)
Amortization goodwill in the sale of fixed assets of Envases CMF S.A.		-			42,633
Amortization goodwill preferred rights CCDV S.A.		-			(261,531	)
Income statement balance		33,393			987,598

14.4	Summary financial information of associates:

At June 30, 2022

	Envases<br> CMF S.A.		Sorocaba<br><br> Refrescos S.A.		Kaik<br> Participações<br><br> Ltda.		SRSA<br><br> Participações Ltda.		Leão<br> Alimentos e<br><br> Bebidas Ltda.			Trop<br> Frutas do<br><br> Brasil Ltda.			Coca-Cola<br> del<br><br> Valle New<br><br> Ventures S.A.
	CLP (000’S)		CLP (000’S)		CLP (000’S)		CLP (000’S)		CLP (000’S)			CLP (000’S)			CLP (000’S)
Short<br> term assets		50,707,908		26,394,234		-		24,274		79,310,533			19,191,845			29,767,161
Long<br> term assets		47,370,299		100,633,522		11,877,766		345,236		55,092,190			39,381,260			75,295,028
Total<br> assets		98,078,207		127,027,756		11,877,766		369,510		134,402,723			58,573,105			105,062,189
Short<br> term liabilities		37,552,968		21,312,302		-		218,977		13,713,221			12,988,993			11,137,196
Long<br> term liabilities		14,470,846		36,191,665		33		-		10,923,073			22,227,683			6,077,598
Total<br> liabilities		52,023,814		57,503,967		33		218,977		24,636,294			35,216,676			17,214,794
Total<br> Equity		46,054,393		69,523,789		11,877,733		150,533		109,766,429			23,356,429			87,847,358
Total<br> revenue from ordinary activities		46,644,903		38,607,442		333,221		146,975		28,834,322			20,259,287			17,334,954
Earnings<br> before taxes		3,171,485		1,415,670		333,221		146,975		590,323			(2,148,361	)		(289,684	)
Earnings<br> after taxes		2,326,815		2,103,044		333,221		146,975		(802,869	)		(2,100,194	)		354,550
Other<br> comprehensive income		-		7,517,230		-		-		(459,998	)		507,984			-
Total<br> comprehensive income		-		9,620,274		333,221		146,975		(1,262,867	)		(1,592,210	)		-
Reporting date (See Note 2.3)		06.30.2022		05.31.2022		05.31.2022		05.31.2022		05.31.2022			05.31.2022			05.31.2022

At December 31, 2021:

	Envases CMF S.A.		Sorocaba<br><br> Refrescos S.A.			Kaik Participações<br><br> Ltda.		SRSA<br><br> Participações Ltda.		Leão Alimentos e<br><br>Bebidas Ltda.		Trop Frutas do<br><br> Brasil Ltda.			Coca-Cola del<br><br> Valle New<br><br> Ventures S.A.
	CLP (000’S)		CLP (000’S)			CLP (000’S)		CLP (000’S)		CLP (000’S)		CLP (000’S)			CLP (000’S)
Short term assets		72,400,404		19,468,334			-		20,648		68,192,154		16,765,435			29,227,758
Long term assets		42,875,230		92,639,217			9,779,486		294,662		50,034,496		33,021,014			75,706,352
Total assets		115,275,634		112,107,551			9,779,486		315,310		118,226,650		49,786,449			104,934,110
Short term liabilities		57,080,891		21,255,566			-		186,266		12,991,480		10,009,915			10,181,664
Long term liabilities		14,467,165		34,960,269			28		-		6,489,944		18,294,787			7,164,058
Total liabilities		71,548,056		56,215,834			28		186,266		19,481,425		28,304,702			17,345,722
Total Equity		43,727,578		55,891,716			9,779,458		129,043		98,745,226		21,481,747			87,588,388
Total revenue from ordinary activities		77,805,312		(25,164,499	)		204,624		126,016		94,169,579		35,224,230			46,509,329
Earnings before taxes		7,347,219		4,518,371			204,624		126,016		2,876,850		(31,042,731	)		2,306,620
Earnings after taxes		5,509,658		2,573,415			204,624		126,016		1,556,223		(37,324,877	)		2,869,945
Other comprehensive income		-		2,363,061			-		-		49,784		30,547,925			-
Total comprehensive income		-		4,936,476			-		-		1,606,007		(6,776,952	)		-
Reportingdate (See Note 2.3)		12.31.2021		11.30.2021			11.30.2021		11.30.2021		11.30.2021		11.30.2021			12.31.2021

15 – INTANGIBLEASSETS OTHER THAN GOODWILL

Intangible assets other than goodwill are detailed as follows:

	June 30, 2022							December 31, 2021
	Gross		Accumulated			Net		Gross		Accumulated			Net
Description	Value		Amortization			Value		Value		Amortization			Value
	CLP (000’s)		CLP (000’s)			CLP (000’s)		CLP (000’s)		CLP (000’s)			CLP (000’s)
Distribution rights (1)		698,999,710		(4,165,075	)		694,834,635		650,411,156		(3,896,827	)		646,514,329
Software		49,499,004		(34,727,927	)		14,771,077		44,084,900		(31,019,938	)		13,064,962
Others		509,957		(457,705	)		52,252		509,957		(457,705	)		52,252
Total		749,008,671		(39,350,707	)		709,657,964		695,006,013		(35,374,470	)		659,631,543
(1)	Correspond to the contractual rights to produce and distribute Coca-Cola products in certain parts of<br>Argentina, Brazil, Chile and Paraguay. Distribution rights result from the valuation process at fair value of the assets and liabilities<br>of the companies acquired in business combinations. Production and distribution contracts are renewable for periods of 5 years with Coca-Cola.<br>The nature of the business and renewals that Coca-Cola has permanently done on these rights, allow qualifying them as indefinite contracts.
---	---

The 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 and are not subject to amortization, except for the Monster rights that are amortized in the term of the agreement which is 4 years.

Distribution rights	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Chile (excluding Metropolitan Region, Rancagua and San Antonio)		303,896,908		303,973,971
Brazil (Rio de Janeiro, Espírito Santo, Ribeirão Preto and investments in Sorocaba and Leão Alimentos e Bebidas Ltda.) *		185,953,341		158,175,979
Paraguay		201,585,170		181,675,993
Argentina (North and South)		3,399,216		2,688,386
Total		694,834,635		646,514,329

* 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.

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

	January 1 to June 30, 2022											January 1 to December 31, 2021
	Distribution											Distribution
Description	Rights			Others		Software			Total			Rights			Others		Software			Total
	CLP (000’s)			CLP (000’s)		CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)		CLP (000’s)			CLP (000’s)
Opening balance		646,514,329			52,252		13,064,962			659,631,543			596,365,737			975		8,147,453			604,514,165
Additions		16,882			-		2,392,839			2,409,721			5,773,560			-		6,998,593			12,772,153
Amortization		(93,945	)		-		(2,029,070	)		(2,123,015	)		(152,644	)		-		(2,637,823	)		(2,790,467	)
Other increases (decreases) (1)		48.397.369			-		1,342,346			49,739,715			44,527,676			51,277		556,739			45,135,692
Ending balance		694,834,635			52,252		14,771,077			709,657,964			646,514,329			52,252		13,064,962			659,631,543
(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	<br><br><br><br><br><br>01.01.2022		Foreign currency<br><br> translation differences<br><br> where functional currency<br><br> is different from<br><br> presentation currency		<br><br><br><br><br><br>06.30.2022
	CLP (000’s)		CLP (000’s)		CLP (000’s)
Chilean operation		8,503,023		-		8,503,023
Brazilian operation		61,851,449		10,682,510		72,533,959
Argentine operation		39,976,392		9,145,551		49,121,943
Paraguayan operation		7,712,036		845,133		8,557,169
Total		118,042,900		20,673,194		138,716,094
<br><br><br><br><br><br>Cash Generating Unit	<br><br><br><br><br><br>01.01.2021		Foreign currency<br> translation differences<br> where functional currency<br> is different from<br> presentation currency		<br><br><br><br>**<br><br>12.31.2021**
---	---	---	---	---	---	---
	CLP (000’s)		CLP (000’s)		CLP (000’s)
Chilean operation		8,503,023		-		8,503,023
Brazilian operation		56,001,413		5,850,036		61,851,449
Argentine operation		27,343,642		12,632,750		39,976,392
Paraguayan operation		6,477,515		1,234,521		7,712,036
Total		98,325,593		19,717,307		118,042,900

17 – OTHER CURRENTAND NON-CURRENT FINANCIAL LIABILITIES

Liabilities are detailed as follows:

	Balance
	Current				Non-current
		06.30.2022		12.31.2021		06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Bank loans (Note 17.1.1 - 3)		5,445,501		26,617		4,000,000		4,000,000
Bonds payable, net^1^ (Note 17.2)		27,522,818		25,383,339		1,103,083,987		1,020,661,942
Bottle guaranty deposits		15,187,551		13,402,885		-		-
Derivative contract liabilities (Note 17.3)		31,179		758,663		16,623,117		-
Lease liabilities (Note 17.4.1 - 2)		8,011,986		8,191,535		16,910,868		16,387,030
Total		56,199,035		47,763,039		1,140,617,972		1,041,048,972

^1^ Amounts net of issuance expenses and discounts related to issuance.

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

Current	Bookvalue<br> <br>06.30.2022		Fair value<br> <br>06.30.2022		Bookvalue<br> <br>12.31.2021		Fair value<br> <br>12.31.2021
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Cash and cash equivalent (2)		261,641,342		261,641,342		304,312,020		304,312,020
Other financial assets (1)		2,124,742		2,124,742		961,705		961,705
Trade debtors and other accounts receivable (2)		237,364,959		237,364,959		265,490,626		265,490,626
Accounts receivable related companies (2)		8,473,299		8,473,299		9,419,050		9,419,050
Bank liabilities (2)		5,445,501		5,523,932		26,617		111,992
Bonds payable (2)		27,522,818		27,844,591		25,383,339		26,774,799
Bottle guaranty deposits (2)		15,187,551		15,187,551		13,402,885		13,402,885
Forward contracts liabilities (see Note 22) (1)		31,179		31,179		758,663		758,663
Leasing agreements (2)		8,011,986		8,011,986		8,191,535		8,191,535
Accounts payable (2)		299,436,291		299,436,291		327,409,207		327,409,207
Accounts payable related companies (2)		69,925,001		69,925,001		56,103,461		56,103,461
Non-current		06.30.2022		06.30.2022		12.31.2021		12.31.2021
---	---	---	---	---	---	---	---	---
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Other financial assets (1)		266,398,672		266,398,672		281,337,127		281,337,127
Non-current accounts receivable (2)		379,652		379,652		126,464		126,464
Accounts receivable related companies (2)		115,865		115,865		98,940		98,940
Bank liabilities (2)		4,000,000		3,680,817		4,000,000		4,056,753
Bonds payable (2)		1,103,083,987		1,064,786,276		1,020,661,942		1,041,841,338
Leasing agreements (2)		16,910,868		16,910,868		16,387,030		16,387,030
Non-current accounts payable (2)		1,958,773		1,958,773		256,273		256,273
Derivative contracts liabilities (see Note 22) (1)		16,623,117		16,623,117		-		-
(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<br>classified as Level 2 of the fair value measurement hierarchies.
---	---
(2)	Financial instruments such as: Cash and Cash Equivalents, Trade and Other Accounts Receivable, Accounts<br>Receivable, Bottle Guarantee Deposits and Trade Accounts Payable, and Other Accounts Payable present a fair value that approximates their<br>carrying value, considering the nature and term of the obligation. The business model is to maintain the financial instrument in order<br>to collect/pay contractual cash flows, in accordance with the terms of the contract, where cash flows are received/cancelled on specific<br>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		06.30.2022		12.31.2021
														CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
96.705.990-0	Envases<br> Central S.A.		Chile	97.006.000-6	Banco<br> BCI		Chile		CLP	Semiannually		2.00	%		28,000		-		28,000		26,617
Foreign	Embotelladora<br> del Atlántico S.A.		Argentina	Foreign	Banco<br> Galicia y de Buenos Aires S.A:		Argentina		ARS	At<br> maturity		45.00	%		1,140,851		-		1,140,851		-
Foreign	Embotelladora<br> del Atlántico S.A.		Argentina	Foreign	Banco<br> Galicia y de Buenos Aires S.A:		Argentina		ARS	At<br> maturity		44.00	%		4,276,650		-		4,276,650		-
Total																			5,445,501		26,617

17.1.2 Bank liabilities, non-current

															Maturity
	Indebted entity				Creditor entity					Type<br> of		Nominal			1<br> year up to		More<br> than 2	More<br> than 3	More<br> than 4	More<br> than 5		At
Taxpayer<br> ID	Name	Country		Taxpayer<br> ID	Name	Country		Currency		Amortization		Rate			2<br> years		Up<br> to 3 years	Up<br> to 4 years	Up<br> to 5 years	years		06.30.2022
															CLP<br> (000’s)		CLP<br> (000’s)	CLP<br> (000’s)	CLP<br> (000’s)	CLP<br> (000’s)		CLP<br> (000’s)
96.705.990-0	Envases<br> Central S.A.		Chile	97.006.000-6	Banco<br> BCI		Chile		CLP		Semiannually		2.00	%		-	-	4,000,000	-		-		4,000,000
																					Total		4,000,000

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		At
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		12.31.2021
															CLP (000’s)		CLP (000’s)	CLP (000’s)	CLP (000’s)	CLP (000’s)		CLP (000’s)
96.705.990-0	Envases<br> Central S.A.		Chile	97.006.000-6	Banco<br> BCI		Chile		CLP		Semiannually		2.00	%		-	-	4,000,000	-		-		4,000,000
																					Total		4,000,000

17.1.4 Current and non-currentbank obligations “Restrictions”

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

17.2 Bondobligations

On January 21, 2020, the Company issued corporate bonds on the international market for USD 300 million with a 30-year maturity, with a bullet structure and an annual interest rate of 3.950%. In parallel, derivatives (Cross Currency Swaps) covering 100% of the financial obligations of the bond that are denominated in US dollars have been contracted re-denominating that liability to UF.

	Current				Non-current				Total
Composition of bonds payable	06.30.2022		12.31.2021		06.30.2022		12.31.2021		06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Bonds<br>face value ^1^		28,298,035		26,103,215		1,110,454,974		1,027,864,462		1,138,753,009		1,053,967,677

17.2.1****Currentand 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:

		Currentnominal		Adjustment			Final	Interest	Current				Non-current
Bonds	Series	amount		unit			maturity	payment	06.30.2022		12.31.2021		06.30.2022		12.31.2021
									CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
CMF Registration 254<br><br> 06.13.2001	B		1,253,683	UF	6.5	%	12-01-2026	Semiannually		9,622,268		8,769,787		32,068,379		34,515,188
CMF Registration 641<br><br> 08.23.2010	C		1,295,454	UF	4.0	%	08-15-2031	Semiannually		5,148,477		4,853,856		38,350,644		38,035,317
CMF Registration 760<br><br> 08.20.2013	D		4,000,000	UF	3.8	%	08-16-2034	Semiannually		1,854,540		1,737,109		132,347,320		123,966,960
CMF Registration 760<br><br> 04.02.2014	E		3,000,000	UF	3.75	%	03-01-2035	Semiannually		1,229,308		1,151,467		99,260,500		92,975,229
CMF Registration 912<br><br> 10.10.2018	F		5,700,000	UF	2.83	%	09-25-2039	Semiannually		1,382,268		1,316,202		188,594,931		176,652,918
Bonds USA 2023<br><br>10.01.2013	-		365,000,000	US	5.0	%	10-01-2023	Semiannually		4,182,900		3,853,898		340,209,200		308,311,850
Bonds USA 2050<br><br>01.01.2021	-		300,000,000	US	3.95	%	01-21-2050	Semiannually		4,878,274		4,420,896		279,624,000		253,407,000
								Total		28,298,035		26,103,215		1,110,454,974		1,027,864,462

All values are in US Dollars.

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

17.2.2 Non-current maturities

		Year of maturity								Total Non-<br> current
	Series	More than 1<br> up to 2		More than 2<br> up to 3		More than 3<br> up to 4		More than 5		06.30.2022
		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
CMF Registration 254<br><br> 06.13.2001	B		10,023,796		10,675,342		11,369,242		-		32,068,380
CMF Registration 641<br><br> 08.23.2010	C		4,511,840		4,511,840		4,511,840		24,815,123		38,350,643
CMF Registration 760<br><br> 08.20.2013	D		-		-		-		132,347,320		132,347,320
CMF Registration 760<br><br> 04.02.2014	E		-		-		-		99,260,500		99,260,500
CMF Registration 912<br><br> 10.10.2018	F		-		-		-		188,594,931		188,594,931
Bonds USA	-		340,209,200		-		-		-		340,209,200
Bonds USA 2	-		-		-		-		279,624,000		279,624,000
Total			354,744,836		15,187,182		15,881,082		724,641,874		1,110,454,974

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 Restrictionsregarding bonds placed abroad.

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

17.2.4.2 Restrictionsregarding bonds placed in the local market.

The following financial information was used for calculating restrictions:

	06.30.2022
	CLP (000’s)
Average net financial debt last 4 quarters		371,065,168
Net financial debt		587,420,235
Unencumbered assets		2,683,614,828
Total unsecured liabilities		1,652,754,871
EBITDA LTM		443,115,037
Net financial expenses LTM		31,921,274

Restrictions on the issuanceof 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 the date of these financial statements, this ratio was 0.84 times.

·	Maintain, and in no manner lose, sell, assign<br>or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” (Región Metropolitana)<br>as a territory in Chile in which we have been authorized by The Coca-Cola Company for the development, production, sale and distribution<br>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<br>party any other territory of Argentina or Brazil, which as of this date is franchised by TCCC to the Company for the development, production,<br>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<br>Adjusted Consolidated Operating Cash Flow.
---	---
·	Maintain consolidated assets free of any pledge,<br>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 the date of these financial statements, this ratio is 1.62 times.

Restrictions to bond lines registeredin 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 the date of these financial statements, this ratio was 0.84 times.

·	Maintain consolidated assets free of any pledge,<br>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 the date of these financial statements, this ratio was 1.62 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 the date of these financial statements, Net Financial Coverage was 13.88 times.

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

As of the date of these financial statements, this ratio was 0.84 times.

·	Maintain consolidated assets free of any pledge,<br>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 the date of these financial statements, this ratio was 1.62 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 Registrarunder 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 the date of these financial statements, this ratio was 0.84 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 the date of these financial statements, this ratio was 1.62 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 June 30, 2022 and December 31, 2021 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<br> entity		Creditor<br> entity				Amortization	Nominal			Up<br> to		90<br> days up to		at		at
Name	Country	Taxpayer<br> ID	Name	Country	Currency	Type	Rate			90<br> days		1<br> year		06.30.2022		12.31.2021
										CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Rio de Janeiro Refrescos<br> Ltda.	Brazil	Foreign	Cogeração<br> - Light ESCO	Brazil	BRL	Monthly		12.28	%		260,471		830,979		1,091,450		873,321
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Tetra Pack	Brazil	BRL	Monthly		7.39	%		57,070		82,917		139,987		180,136
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Real estate	Brazil	BRL	Monthly		8.10	%		89,939		163,714		253,653		267,752
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Leão Alimentos e Bebidas<br> Ltda.	Brazil	BRL	Monthly		3.50	%		81,360		251,064		332,424		289,409
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Tetra Pak SRL	Argentina	USD	Monthly		12.00	%		41,162		123,487		164,649		148,347
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Banco Comafi	Argentina	USD	Monthly		12.00	%		-		-				24,779
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Real estate	Argentina	ARS	Monthly		50.00	%		293,364		450,949		744,313		486,793
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Systems	Argentina	USD	Monthly		12.00	%		56,206		132,494		188,700		138,103
VJ S.A.	Chile	93.899.000-k	De Lage Landen Chile S.A.	Chile	USD	Linear		12.16	%		153,257		468,413		621,670		558,872
Vital Aguas S.A.	Chile	76.389.720-6	Coca-Cola del Valle New Ventures<br> S.A.	Chile	CLP	Linear		7.50	%		280,369		272,598		552,967		1,107,139
Envases Central S.A.	Chile	96.705.990-0	Coca-Cola del Valle New Ventures<br> S.A.	Chile	CLP	Linear		5.56	%		593,573		1,201,117		1,794,690		2,364,977
Paraguay Refrescos S.A.	Paraguay	80.003.400-7	Tetra Pack Ltda. Suc. Py	Paraguay	PGY	Monthly		1.00	%		57,364		0		57,364		185,345
Transportes Polar S.A.	Chile	96.928.520-7	Cons. Inmob. e Inversiones Limitada	Chile	UF	Monthly		2.89	%		0		55,611		55,611		101,950
Embotelladora Andina S.A.	Chile	91.144.000-8	Central de Restaurante Aramark<br> Ltda.	Chile	CLP	Monthly		1.30	%		-		-		-		13,997
Transportes Andina Refrescos Ltda	Chile	78.861.790-9	Arrendamiento De Maquinaria SPA	Chile	UF	Monthly		1.00	%		73,074		218,292		291,366		274,063
Transportes Andina Refrescos Ltda	Chile	78.861.790-9	Comercializadora Novaverde Limitada	Chile	UF	Monthly		0.08	%		100,484		268,055		368,539		376,446
Transportes Andina Refrescos Ltda	Chile	78.861.790-9	Jungheinrich Rentalift SPA	Chile	UF	Monthly		0.24	%		214,311		652,257		866,568		800,106
Red de Transportes Comerciales<br> S.A.	Chile	76.276.604-3	Inmobiliaria Ilog Avanza Park	Chile	UF	Monthly		0.21	%		148,772		339,263		488,035		-
													Total		8,011,986		8,191,535

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 leasingagreements

							Maturity
**<br><br> <br>Indebted entity**		**<br><br> <br>Creditor entity**				**<br><br> <br>Amortization**	**<br><br> <br>Nominal**			1year upto		2 years up to		3 years up to		4 years up to		More than		****<br><br> <br>at
Name	Country	Taxpayer ID	Name	Country	Currency	Type	Rate			2 years		3 years		4 years		5 years		5 years		06.30.2022
										CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Rio<br> de Janeiro Refrescos Ltda.	Brasil	Foreign	Cogeração<br> - Light ESCO	Brazil	BRL	Monthly		12.28	%		1,233,260		1,393,584		1,574,750		1,779,468		3,687,176		9,668,238
Rio de Janeiro Refrescos Ltda.	Brasil	Foreign	Tetra Pack		Brazil	BRL	Monthly		7.39	%		80,486		86,643		93,272		100,407		260,133		620,941
Rio de Janeiro Refrescos Ltda.	Brasil	Foreign	Real estate	Brazil	BRL	Monthly		8.10	%		59,515		8,601		-		-		-		68,116
Rio de Janeiro Refrescos Ltda.	Brasil	Foreign	Leão<br> Alimentos e Bebidas Ltda.	Brazil	BRL	Monthly		3.50	%		317,259		317,118		153,439		19,059		28,896		835,771
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Banco Comafi	Argentina	USD	Monthly		12.00	%		-		329,299		-		178,369		-		507,668
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Tetra Pak SRL	Argentina	USD	Monthly		12.00	%		-		149,707		-		-		-		149,707
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Real estate	Argentina	ARS	Monthly		50.00	%		-		58,227		-		-		-		58,227
VJ S.A.	Chile	Foreign	De Lage Landen<br> Chile S.A.	Chile	USD	Monthly		12.16	%		1,145,270				-		-		-		1,145,270
Transportes<br> Andina Refrescos Ltda	Chile	85.275.700-0	Arrendamiento<br> De Maquinaria SPA	Chile	UF	Monthly		1.00	%		-		480,197		-		-		-		480,197
Transportes<br> Polar S.A.	Chile	76.413.243-2	Cons. Inmob.<br> e Inversiones Limitada	Chile	UF	Monthly		2.89	%		-		230,645		9,902		-		-		240,547
Red de Transportes<br> Comerciales S.A.	Chile	76.276.604-3	Inmobiliaria<br> Ilog Avanza Park	Chile	UF	Monthly		0.21	%		-		936,133		-		-		-		936,133
Transportes<br> Andina Refrescos Ltda	Chile	78.861.790-9	Jungheinrich<br> Rentalift SPA	Chile	UF	Monthly		0.24	%		-		1,809,740		-		390,313		-		2,200,053
																			Total		16,910,868

17.4.3 Non-current liabilities for leasingagreements (previous year)

							Maturity
**<br><br><br><br>Indebtedentity**		**<br><br>Creditor entity**				**<br><br>Type of**	**<br><br>Nominal**		**<br><br>1 year up to**	2 years up to	3 years up to		**<br><br>4 years up to**		**<br><br>More than**		****<br><br>at
Name	Country	Taxpayer<br> ID	Name	Country	Currency	Amortization	Rate		2 years	3 years	4 years		5 years		5 years		12.31.2021
									CLP<br> (000’S)	CLP<br> (000’S)	CLP<br> (000’S)		CLP<br> (000’S)		CLP<br> (000’S)		CLP<br> (000’S)
Rio de Janeiro Refrescos<br> Ltda.	Brazil	Foreign	Cogeração<br> - Light ESCO	Brazil	BRL	Monthly	12.28	%	986,852	1,115,143		1,260,112		1,423,926		3,917,596		8,703,629
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Tetra Pack		Brazil	BRL	Monthly	7.39	%	64,906	69,872		75,217		80,971		256,055		547,021
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Real estate	Brazil	BRL	Monthly	8.20	%	115,321	28,670		-		-		-		143,991
Rio de Janeiro Refrescos Ltda.	Brazil	Foreign	Leão Alimentos e Bebidas<br> Ltda.	Brazil	BRL	Monthly	6.56	%	276,248	269,864		249,693		29,102		27,331		852,238
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Banco Comafi	Argentina	USD	Monthly	12.00	%	-	86,276		-		-		-		86,276
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Tetra Pak SRL	Argentina	USD	Monthly	12.00	%	-	296,693		-		234,882		-		531,575
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Real estate	Argentina	ARS	Monthly	50.00	%	-	86,139		-		-		-		86,139
Embotelladora del Atlántico<br> S.A.	Argentina	Foreign	Real estate	Argentina	ARS	Monthly	50.00	%	1,343,457	-		-		-		-		1,343,457
Vital Aguas S.A.	Chile	76.572.588-7	Coca-Cola del Valle New Ventures<br> S.A.	Chile	CLP	Monthly	8.20	%	602,887	-		-		-		-		602,887
Envases Central S.A.	Chile	76.572.588-7	Coca-Cola del Valle New Ventures<br> S.A.	Chile	CLP	Monthly	9.00	%	-	541,264		-		44,696		-		585,960
Paraguay Refrescos S.A.	Paraguay	80.003.400-7	Tetra Pack Ltda. Suc. Py	Paraguay	PGY	Monthly	1.00	%	-	212,945		-		64,460		-		277,405
Transportes Polar S.A.	Chile	76.413.243-2	Cons. Inmob. e Inversiones Limitada	Chile	UF	Monthly	2.89	%	-	156,942		-		-		-		156,942
Embotelladora Andina S.A.	Chile	76.178.360-2	Central de Restaurante Aramark<br> Ltda.	Chile	CLP	Monthly	1.30	%	-	1,670,939		-		798,571		-		2,469,510
																Total		16,387,030

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

18 – TRADE ANDOTHER ACCOUNTS PAYABLE

Trade and other current accounts payable are detailed as follows:

Classification	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Current		299,436,291		327,409,207
Non-current		1,958,773		256,273
Total		301,395,064		327,665,480
Item
---	---	---	---	---
	CLP (000’s)		CLP (000’s)
Trade accounts payable		238,207,020		248,163,428
Withholding tax		37,758,934		54,812,365
Others		25,429,110		24,689,687
Total		301,395,064		327,665,480

19 – OTHER PROVISIONS,CURRENT AND NON-CURRENT

19.1 Balances

The composition of provisions is as follows:

Description	06.30.2022		12.31.2021
	CLP (000’s)		CLP (000’s)
Litigation<br> (1)		55,181,287		57,412,406
Total		55,181,287		57,412,406
Current		1,274,667		1,528,879
Non-current		53,906,620		55,883,527
Total		55,181,287		57,412,406
(1)	Correspond to the provision made for the probable losses of tax,<br> labor and commercial contingencies, based on the opinion of our legal advisors, according<br> to the following detail:
---	---
Description (see note 23.1)	06.30.2022		12.31.2021
---	---	---	---	---
	CLP (000’s)		CLP (000’s)
Tax contingencies		33,613,782		28,673,105
Labor contingencies		11,099,717		9,502,630
Civil contingencies		10,467,788		19,236,671
Total		55,181,287		57,412,406

19.2 Movements

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

Description	06.30.2022			12.31.2021
	CLP (000’s)			CLP (000’s)
Opening balance at January 1^st^		57,412,406			50,070,273
Additional provisions		26,014			948,632
Increase (decrease) in existing provisions		3,334,868			5,903,714
Used provision (payments made charged to the provision)		(1,471,908	)		(3,717,687	)
Reversal of unused provision		(13,401,829	)		(788,215	)
Increase (decrease) due to foreign exchange<br> rate differences		9,281,736			4,995,689
Total		55,181,287			57,412,406

(*) 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-FINANCIALLIABILITIES

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

	Current					Non-current
Description	06.30.2022			12.31.2021		06.30.2022			12.31.2021
	CLP (000’s)			CLP (000’s)		CLP (000’s)			CLP (000’s)
Dividends payable		236,181			29,020,899		-			-
Other		17,186,463	^(1)^		2,216,935		29,845,005	^(2)^		23,784,817
Total		17,422,644			31,237,834		29,845,005			23,784,817
(1)	Corresponds to an advance payment from<br> Coca-Cola de Chile S.A. for a marketing co-participation plan for the penetration of market<br> equipment, which will be developed between 2022 and 2024.
---	---
(2)	Other non-current corresponds mainly<br> to accounts payable to former shareholders of Companhia de Bebidas Ipiranga (“CBI”).<br> See Note 6 for further information.
---	---

21 – EQUITY

21.1 Number of shares:

	Number<br> of subscribed, paid-in and<br><br> <br>voting shares
Series	2022		2021
A		473,289,301		473,289,301
B		473,281,303		473,281,303

21.1.1 Capital:

	Paid-in<br> and subscribed capital
Series	2022		2021
	CLP (000’s)		CLP (000’s)
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:<br> Elects 12 of the 14 Directors.
---	---
●	Series B: Receives<br> 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 2022, shareholders agreed to pay out of the 2021 earnings a final dividend additional to the 30% required by Chile’s Law on Corporations and an eventual final dividend, which were paid on April 26, 2022.

In accordance with the provisions of Circular No. 1.945 of the Commission for the Financial Market (CMF) dated September 29, 2009, the Company’s Board of Directors decided to maintain the initial adjustments of adopting IFRS as cumulative gains whose distribution is conditional on their future realization.

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

Periods<br><br> <br>approved -<br> paid		Dividend type	Profits<br> imputable to<br><br> <br>dividends
12-21-2021	01-28-2022	Interim	2021 Earnings	29.00	31.90
04-13-2022	04-26-2022	Final	Accumulated Earnings	189.00	207.9
21.3	Other reserves
---	---

The balance of other reserves includes the following:

Concept	06.30.2022			06.30.2021
	CLP (000’s)			CLP (000’s)
Polar acquisition		421,701,520			421,701,520
Foreign currency translation reserves		(374,715,935	)		(502,393,257	)
Cash flow hedge reserve		580,855			13,666,725
Reserve for employee benefit actuarial gains or losses		(5,139,275	)		(3,910,292	)
Legal and statutory reserves		5,435,538			5,435,538
Other		6,014,568			6,014,568
Total		53,877,271			(59,485,198	)
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 equivalents accounted for using the equity method, Translation reserves are detailed as follows:

Description
	CLP (000’s)			CLP (000’s)
Brazil		(107,401,651	)		(183,648,603	)
Argentina		(319,878,110	)		(306,522,528	)
Paraguay		52,563,826			(12,222,126	)
Total		(374,715,935	)		(502,393,257	)

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

Description	06.30.2022			06.30.2021
	CLP (000’s)			CLP (000’s)
Brazil		60,045,738			20,008,789
Argentina		(25,181,882	)		(15,190,126	)
Paraguay		32,000,297			10,284,566
Total		66,864,153			15,103,229

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 %				Equity				Income
					June		June		June			June
Description	2022		2021		2022		2021		2022			2021
					CLP (000’s)		CLP (000’s)		CLP (000’s)			CLP (000’s)
Embotelladora del Atlántico S.A.		0.0171		0.0171		36,329		24,601		4,333			1,230
Andina Empaques Argentina S.A.		0.0209		0.0209		4,590		2,602		(31	)		(45	)
Paraguay Refrescos S.A.		2.1697		2.1697		7,071,694		5,100,903		471,102			381,126
Vital S.A.		35.0000		35.0000		8,327,679		8,002,289		126,165			282,858
Vital Aguas S.A.		33.5000		33.5000		2,137,652		2,011,812		59,854			63,903
Envases Central S.A.		40.7300		40.7300		6,149,274		6,004,253		180,927			776,205
Re-Ciclar S.A. (*)		40.0000		-		4,330,882		-		(13,196	)		-
Total						28,058,100		21,146,460		829,154			1,505,277

(*) Re-Ciclar is a company incorporated in September 2021 whose purpose is to produce recycled resin for the Coca-Cola system and third parties. Non-controlling interest reaches 40.0%.

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 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	06.30.2022
	SERIES A		SERIES B		TOTAL
Earnings attributable to shareholders (CLP 000’s)		28,251,470		31,076,116		59,327,586
Average weighted number of shares		473,289,301		473,281,303		946,570,604
Earnings per basic and diluted share (CLP)		59.69		65.66		62.68
Earnings per share		06.30.2021
		SERIES A		SERIES B		TOTAL
Earnings attributable to shareholders (CLP 000’s)		20,607,835		22,668,253		43,276,088
Average weighted number of shares		473,289,301		473,281,303		946,570,604
Earnings per basic and diluted share (CLP)		43.54		47.90		45.72

22 – DERIVATIVEASSETS 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 the date of these financial statements, the Company holds the following derivative instruments:

22.1	Accounting recognition of cross currency swaps

Cross Currency Swaps, associated with localBonds (Chile)

At the closing date of these financial statements, the Company maintains derivative contracts to secure some of its bond debt issued in Unidades de Fomento totaling UF 9,549,137 (UF 9,752,973 in 2021), to convert those obligations to CLP.

These contracts were valued at fair value, yielding a net asset at the closing date of the financial statements of CLP 77,916,273 thousand (CLP 34,239,224 thousand in 2021) 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 internationalBonds (U.S.A.)

At the closing date of these financial statements, 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 an asset of CLP 188,482,399 thousand as of the closing date of these financial statements (CLP 192,844,908 thousand as of December 31, 2021), while the valuation of the second contract at its fair value generates a liability of CLP 16,623,117 thousand at the closing date of these financial statements (CLP 54,252,995 thousand asset at December 31, 2021).

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 2022 and 2021, 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. At the closing date of these financial statements, outstanding contracts amount to USD 71.7 million (USD 70.2 million as of December 31, 2021).

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

At the closing date of these financial statements, the Company held assets for derivative contracts for CLP 268,523,413 thousand (CLP 282,298,832 thousand as of December 31, 2021) and held liabilities for derivative contracts for CLP 16,654,296 thousand (CLP 758,663 thousand as of December 31, 2021). 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<br>assets or liabilities
Level 2:	Inputs other than quoted prices included in level 1 that<br>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<br>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 June 30, 2022
	Quoted prices in<br><br> active markets for
	identical assets or<br><br> liabilities		Observable<br> market data		Unobservable<br><br> market data
	(Level 1)		(Level 2)		(Level 3)	Total
	CLP (000’S)		CLP (000’S)		CLP (000’S)	CLP (000’S)
Assets
Current assets
Other current financial assets		-		2,124,742	-		2,124,742
Other non-current financial assets		-		266,398,672	-		266,398,672
Total assets		-		268,523,414	-		268,523,414
Liabilities
Other current financial liabilities		-		31,179	-		31,179
Other non-current financial liabilities		-		16,623,117	-		16,623,117
Total Liabilities		-		16,654,296	-		16,654,296
	Fair Value Measurement at December 31, 2021
---	---	---	---	---	---	---	---
	Quoted prices in<br><br> active markets for<br><br> identical assets or<br><br> liabilities		Observable<br> market data		Unobservable <br><br>market data
	(Level 1)		(Level 2)		(Level 3)	Total
	CLP (000’s)		CLP (000’s)		CLP (000’s)	CLP (000’s)
Assets
Current and non-current assets
Other current financial assets		-		961,705	-		961,705
Other non-current financial assets		-		281,337,127	-		281,337,127
Total assets		-		282,298,832	-		282,298,832
Liabilities
Current and non-current liabilities
Other current financial liabilities		-		758,663	-		758,663
Other non-current financial liabilities		-		-	-		-
Total liabilities		-		758,663	-		758,663

23 – LITIGATIONAND 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 1,941,587 thousand (CLP 1,917,657 thousand as of December 31, 2021). 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 250,690 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 51,965,033 thousand (CLP 53,965,870 thousand as of December 31, 2021). 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 27,739,683 thousand (CLP 23,502,962 thousand as of December 31, 2021).

---

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 1,580,874,402, with different Financial Institutions and Insurance Companies in Brazil, these entities receive an annual commission fee of 0.58%. 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 bail 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:

a)	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 2,983,637,817 as of the date of these financial statements.

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 752,539,970 (amount includes adjustments for current lawsuits) a start provision has been generated in the accounting of the business combination for BRL 142,208,446.

b)	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 440,966,025 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 518,672,480, 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 1,228,764 thousand (CLP 1,487,509 thousand as of December 31, 2021). 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 38,346 thousand (CLP 45,903 thousand as of December 31, 2021). Management considers it is unlikely that non-provisioned contingencies will affect income and equity of the Company, in the opinion of its legal advisors.

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23.2	Direct guarantees and restricted assets:

Guarantees and restricted assets are detailed as follows:

Guarantees that commit assets recognized inthe financial statements:

	Committed assets				Accounting<br> value
Guaranty Creditor	Debtor name	Relationship	Guaranty	Type	06.30.2022		12.31.2021
					CLP (000’s)		CLP (000’s)
Administradora Plaza<br> Vespucio S.A.	Embotelladora Andina<br> S.A.	Parent company	Cash	Trade accounts and<br> other accounts receivable		92,511		86,416
Cooperativa Agricola Pisquera<br> Elqui Limitada	Embotelladora Andina S.A.	Parent company	Cash	Other non-current financial assets		1,216,865		1,216,865
Mall Plaza	Embotelladora Andina S.A.	Parent company	Cash	Trade accounts and other accounts<br> receivable		284,261		290,890
Serv.Nacional Aduanas	Embotelladora Andina S.A.	Parent company	Cash	Trade accounts and other accounts<br> receivable		20,239		18,583
Metro S.A.	Embotelladora Andina S.A.	Parent company	Cash	Trade accounts and other accounts<br> receivable		72,868		24,335
Parque Arauco S.A.	Embotelladora Andina S.A.	Parent company	Cash	Trade accounts and other accounts<br> receivable		134,663		126,136
Lease agreement	Embotelladora Andina S.A.	Parent company	Cash	Trade accounts and other accounts<br> receivable		79,990
Several retail	Vending	Subsidiary	Cash	Trade accounts and other accounts<br> receivable		56,556		63,792
Several retail	Transportes Refrescos	Subsidiary	Cash	Trade accounts and other accounts<br> receivable		661		628
Several retail	Transportes Polar	Subsidiary	Cash	Trade accounts and other accounts<br> receivable		22,235		69,745
Workers’ claims	Rio de Janeiro Refrescos Ltda.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		7,191,189		6,057,282
Civil and tax claims	Rio de Janeiro Refrescos Ltda.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		7,762,120		6,562,747
Governmental entities	Rio de Janeiro Refrescos Ltda.	Subsidiary	Plant and equipment	Property, plant and equipment		12,786,374		10,882,933
Distribuidora Baraldo S.H.	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		149		164
Acuña Gomez	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		223		247
Nicanor López	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		160		176
Municipalidad Bariloche	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		3,740		2,230
Municipalidad San Antonio Oeste	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		16,430		18,153
Municipalidad Carlos Casares	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		16,430		734
Municipalidad Chivilcoy	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		102,757		113,530
Granada Maximiliano	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		1,340		1,480
Municipalidad de Junin	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		214		237
Almada Jorge	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		1,818		2,009
Farias Matias Luis	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		834		922
Temas Industriales SA - Embargo<br> General de Fondos	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		93,326		103,110
DBC SA C CERVECERIA ARGENTINA<br> SA ISEMBECK	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		16,747		18,502
Coto Cicsa	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		2,977		3,289
Cencosud	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		1,861		2,056
Jose Luis Kreitzer, Alexis Beade<br> Y Cesar Bechetti	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		7,370		8,143
Causa Bariloche	Embotelladora del Atlántico<br> S.A.	Subsidiary	Judicial deposit	Other non-current non-financial<br> assets		-		1,902
Marcus A. Peña	Paraguay Refrescos	Subsidiary	Real estate	Property, plant and equipment		5,599		5,692
Mauricio J Cordero C	Paraguay Refrescos	Subsidiary	Real estate	Property, plant and equipment		-		987
José Ruoti Maltese	Paraguay Refrescos	Subsidiary	Real estate	Property, plant and equipment		-		712
Alejandro Galeano	Paraguay Refrescos	Subsidiary	Real estate	Property, plant and equipment		-		1,365
Ana Maria Mazó	Paraguay Refrescos	Subsidiary	Real estate	Property, plant and equipment		1,219		1,300

Guarantees that do not commit assets recognized in the FinancialStatements:

	Committed assets					Amounts<br> involved
Guaranty<br> creditor	Debtor<br> name	Relationship	Guaranty	Type		06.30.2022			12.31.2021
					CLP (000’s)			CLP (000’s)
Labor<br> procedures	Rio<br> de Janeiro Refrescos Ltda.	Subsidiary	Guaranty<br> receipt	Legal<br> proceeding			1,983,174			1,593,498
Administrative<br> procedures	Rio de Janeiro<br> Refrescos Ltda.	Subsidiary	Guaranty<br> receipt	Legal proceeding			6,236,672			4,717,824
Federal<br> government	Rio de Janeiro<br> Refrescos Ltda.	Subsidiary	Guaranty<br> receipt	Legal proceeding			188,899,184			153,491,717
State government	Rio de Janeiro<br> Refrescos Ltda.	Subsidiary	Guaranty<br> receipt	Legal proceeding			121,140,687			64,725,638
Sorocaba<br> Refrescos	Rio de Janeiro<br> Refrescos Ltda.	Subsidiary	Guaranty<br> receipt	Guarantor			3,558,916			3,027,291
Others	Rio de Janeiro<br> Refrescos Ltda.	Subsidiary	Guaranty<br> receipt	Legal proceeding			3,856,378			3,390,177
Aduana de<br> EZEIZA	Embotelladora<br> del Atlántico S.A.	Subsidiary	Surety insurance	Faithful<br> compliance of contract			4,129			-
Aduana de<br> EZEIZA	Andina Empaques<br> Argentina S.A.	Subsidiary	Surety insurance	Faithful<br> compliance of contract			574,493			637,631

24 – FINANCIALRISK 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

As of the closing date of these financial statements, the Company maintains all its debt liabilities at a fixed rate as to avoid fluctuations in financial expenses resulting from tax rate increases.

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.

a)	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,

i.	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,

b)	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:

i.	Time deposits: only in banks or financial institutions that have a risk rating equal or higher than Level<br>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<br>at a fixed-term, current account, fixed rate Tit BCRA, negotiable obligations, Over Night, etc.,) in all those counter-parties that<br>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<br>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) Exposureof 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.

	USD/CLP	BRL/CLP		ARS/CLP		PGY/CLP
Parity variation at closing	+10,3%		+17,6%		-9,5%		+11,0%
	Brazil		Argentina		Paraguay
---	---	---	---	---	---	---
	CLP (000’s)		CLP (000’s)		CLP (000’s)
Total assets	1,002,420,417		369,847,240		375,030,644
Total liabilities	707,066,791		140,195,462		49,106,862
Net investment	295,353,626		229,651,778		325,923,782
Share on income	22.5	%	27.7	%	7.7	%
-5% variation impact on currency translation
Impact on results for the period	(1,127,652	)	(1,200,496	)	(1,033,923	)
Impact on equity at closing	(14,064,458	)	(10,935,799	)	(15,520,180	)

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:

		Payments on the year of maturity
Item		1 year			More than 1<br><br>up to 2			More than 2<br><br>up to 3			More than 3<br><br>up to 4		More than 5
	CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Bank debt			5,898,408			81,111			4,081,333			-		-
Bonds payable			27,522,818			354,744,836			15,187,182			15,881,082		733,894,003
Lease obligations			8,011,986			1,349,442			6,122,021			2,201,041		7,238,363
Contractual obligations (1)			61,836,746			20,590,987			20,049,084			5,370,812		4,950,895
Total			103,269,958			376,766,376			45,439,620			23,452,935		746,083,261
(1)	Agreements that the Andina Group has with collaborating entities for its operation, which are mainly related<br>to contracts entered into to supply products and/or support services in information technology services, commitments of the company with<br>its franchisor to make investments or expenses related to the development of the franchise, support services to personnel, security services,<br>maintenance services of fixed assets, purchase of inputs for production, among others.
---	---

COVID-19-Related Risk

As a result of the impact that COVID-19 is having in different countries around the world, including its outbreak in the region where we operate, Coca-Cola Andina is adopting measures necessary to protect its collaborators and to ensure the continuity of the Company’s operations,

Among the measures it has adopted to protect its collaborators are the following:

·	campaign to educate our collaborators on actions<br>to be taken to avoid the spread of COVID-19;
·	sending home any collaborator that has been exposed<br>to the virus;
·	implementation of additional cleaning protocols<br>for our facilities;
·	modifying certain work practices and activities,<br>keeping customer service:
-	home office has been implemented for those positions where work can be performed remotely
---	---
·	providing personal protective equipment to all<br>our collaborators who need to keep working at plants and distribution centers, as well as to truck drivers and assistants, including face<br>masks and sanitizers,
---	---
·	We developed a plan to promote and encourage<br>voluntary vaccination of our own employees and direct third parties, with weekly monitoring of the evolution of the vaccination status<br>at the regional level,
·	In our plants and distribution centers, we established<br>a preventive protocol for the application of COVID-19 PCR and antigen tests to detect and isolate infected people and identify close contacts,

Since mid-March 2020, governments of the countries where the Company operates, have adopted several measures to reduce infection rates of COVID-19. Among these measures are, the total or partial closing of schools, universities, shopping centers, restaurants and bars, prohibiting social gathering events, issuing stay-at-home orders and establishing quarantine requirements, imposing additional sanitary requirements on exports and imports, and limiting international travel and closing borders. Governments in the countries where we operate have also announced economic stimulus programs for families and businesses, including in Argentina a restriction on workforce reductions, To date, none of our plants has had to suspend their operations,

As a result of the COVID-19 pandemic and the restrictions imposed and eliminated by the authorities in the four countries where we operate, we continue to see certain volatility in our sales across channels. During this quarter, at a consolidated level, we have not observed significant changes in the relative share of our sales channels, with respect to the previous quarter. Because the pandemic and the actions taken by governments are changing very rapidly, we believe it is too early to draw conclusions regarding changes in the long-term consumption pattern, and how these may affect our operating and financial results in the future,

Due to uncertainties regarding the COVID-19 pandemic and the above-mentioned government restrictions, including how long these conditions may persist, and the effects they will have on our sales volumes and our business in general, we cannot accurately predict the ultimate financial impact from these new trends. In any event, we estimate that the Company will not face liquidity constraints. We do not anticipate any significant provisions or impairments at this time,

25 – EXPENSES BY NATURE

Other expenses by nature are:

	01.01.2022				01.01.2021				04.01.2022				04.01.2021
Description	06.30.2022				06.30.2021				06.30.2022				06.30.2021
	CLP (000’s)			CLP (000’s)				CLP (000’s)				CLP (000’s)
Direct production costs		(649,770,567	)			(521,023,286	)			(298,417,329	)			(242,958,500	)
Payroll and employee benefits		(173,141,239	)			(127,901,873	)			(88,903,593	)			(63,071,108	)
Transportation and distribution		(107,397,539	)			(70,239,391	)			(43,562,258	)			(26,206,716	)
Advertisement		(13,166,604	)			(16,851,774	)			(7,551,518	)			(7,067,510	)
Depreciation y amortization		(57,737,043	)			(47,305,539	)			(29,983,898	)			(24,018,011	)
Repairs and maintenance		(16,850,581	)			(13,578,808	)			(8,826,130	)			(8,389,908	)
Other expenses		(70,076,749	)			(36,650,156	)			(50,576,014	)			(24,631,702	)
Total (1)		(1,088,140,322	)			(833,550,827	)			(527,820,740	)			(396,343,455	)
(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			01.01.2021			04.01.2022			04.01.2021
Description	06.30.2022			06.30.2021			06.30.2022			06.30.2021
	CLP (000’s)		CLP (000’s)			CLP (000’s)			CLP (000’s)
Gain on disposal of Property, plant and equipment		42,971			75,485			38,643			17,816
Others		467,174			521,800			296,665			349,717
Total		510,145			597,285			335,308			367,533

27 – OTHER EXPENSES BY FUNCTION

Other expenses by function are detailed as follows:

		01.01.2022				01.01.2021				04.01.2022				04.01.2021
Description		06.30.2022				06.30.2021				06.30.2022				06.30.2021
	CLP (000’s)				CLP (000’s)				CLP (000’s)				CLP (000’s)
Contingencies and non-operating fees			7,908,051				(3,121,131	)			10,494,557				(760,806	)
Tax on bank debts			(4,084,101	)			(1,907,461	)			(2,299,232	)			(773,019	)
Write-offs, disposal and loss (gain) on the sale of Property, plant and equipment			721,598				67,485				700,593				(2,555	)
Others			(254,770	)			(471,477	)			(168,204	)			(320,172	)
Total			4,290,778				(5,432,584	)			8,727,714				(1,856,552	)

28 – FINANCIAL INCOME AND COSTS

Financial income and costs are detailed as follows:

a)	Financial income
		01.01.2022			01.01.2021			04.01.2022			04.01.2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Description		06.30.2022			06.30.2021			06.30.2022			06.30.2021
	CLP (000’S)			CLP (000’S)				CLP (000’S)		CLP (000’S)
Interest income			20,870,982			(2,401,347	)		10,727,553			(5,234,883	)
Ipiranga purchase warranty restatement			15,690			3,441			9,681			2,283
Recovery of PIS credit and COFINS (1)			1,394,306			183,721			618,092			222,500
Other financial income			2,768,987			2,859,876			1,668,223			1,748,144
Total			25,049,965			645,691			13,023,549			(3,261,956	)
(1)	See Note 6 for more information on recovery.
---	---
b)	Financial costs
---	---
	01.01.2022			01.01.2021			04.01.2022			04.01.2021
---	---	---	---	---	---	---	---	---	---	---	---	---
Description	06.30.2022			06.30.2021			06.30.2022			06.30.2021
	CLP (000’S)			CLP (000’S)			CLP (000’S)			CLP (000’S)
Bond interest		(25,539,597	)		(23,967,883	)		(13,108,297	)		(12,146,970	)
Bank loan interest		(193,209	)		(153,886	)		(124,595	)		(12,358	)
Lease interest		(1,024,450	)		(755,273	)		(522,740	)		(388,328	)
Other financial costs		(1,357,593	)		(1,169,393	)		(731,585	)		(603,227	)
Total		(28,114,849	)		(26,046,435	)		(14,487,217	)		(13,150,883	)

29 – OTHER (LOSSES) GAINS

Other (losses) gains are detailed as follows:

	01.01.2022			01.01.2021			04.01.2022				04.01.2021
Description	06.30.2022			06.30.2021			06.30.2022				06.30.2021
	CLP (000’S)			CLP (000’S)		CLP (000’S)				CLP (000’S)
Other gains and losses*		(24,984,651	)		-			(24,984,651	)			-
Total		(24,984,651	)		-			(24,984,651	)			-

* At the closing of June 2022, losses of CLP 24,982,887 thousand were recorded due to the assignment of a loan owned by Embotelladora Andina S.A. to a financial institution with a discount. The credit of Embotelladora Andina was originally generated as a result of dividends from subsidiaries declared in Argentine pesos.

30 – LOCAL AND FOREIGN CURRENCY

Local and foreign currency balances are the following:

CURRENT ASSETS		12.31.2021
		CLP (000’s)
Cash and cash equivalent	261,641,342		304,312,020
	15,318,224		13,640,823
	448,425		2,838,102
CLP	146,543,383		176,278,025
BRL	59,806,961		56,272,827
ARS	3,288,342		22,425,407
PGY	36,236,007		32,856,836
Other current financial assets	81,356,758		195,470,749
CLP	80,970,973		194,834,125
BRL	354,523		140,544
ARS	31,262		481,148
PGY	-		14,932
Other non-current financial assets	29,133,568		14,719,104
	1,242,207		1,141,780
	760		77,526
UF	265,209		256,912
CLP	9,671,021		6,282,535
BRL	3,893,332		1,183,076
ARS	12,212,617		3,831,513
PGY	1,848,422		1,945,762
Trade debtors and other accounts payable	237,364,959		265,490,626
	3,473,272		2,347,439
UF	143,109		69,142
CLP	125,262,285		147,478,959
BRL	76,339,069		76,173,944
ARS	27,392,370		32,330,010
PGY	4,754,854		7,091,132
Accounts receivable related entities	8,473,299		9,419,050
CLP	8,063,348		6,674,178
BRL	80,280		87,865
ARS	329,671		2,657,007
Inventory	231,015,041		191,350,206
CLP	85,906,767		77,225,374
BRL	59,630,903		44,848,239
ARS	67,061,945		54,376,217
PGY	18,415,426		14,900,376
Current tax assets	31,415,951		10,224,368
CLP	21,090,353		5,574,826
BRL	10,325,598		4,649,542
Total current assets	880,400,918		990,986,123
	20,033,703		17,130,042
	449,185		2,915,628
UF	408,318		326,054
CLP	477,508,130		614,348,022
BRL	210,430,666		183,356,037
ARS	110,316,207		116,101,302
PGY	61,254,709		56,809,038

All values are in US Dollars.

NON-CURRENT ASSETS
		CLP (000’s)
Other non-current assets	287,120,552		296,632,012
UF	77,916,273		34,239,224
CLP	3,478,322		55,469,858
BRL	188,482,399		192,844,909
ARS	17,243,558		14,078,021
Other non-current, non-financial assets	62,265,479		70,861,616
	116,131		673,524
CLP	451,695		419,910
BRL	57,434,476		66,621,741
ARS	2,726,917		1,836,280
PGY	1,536,260		1,310,161
Non-current accounts receivable	379,652		126,464
UF	2,411		7,089
CLP	326,718		76,649
PGY	50,523		42,726
Non-current accounts receivable related entities	115,865		98,941
CLP	115,865		98,941
Investments accounted for using the equity method	98,547,489		91,489,194
CLP	53,773,773		52,519,699
BRL	44,773,716		38,969,495
Intangible assets other than goodwill	709,657,964		659,631,543
CLP	311,160,556		311,086,862
BRL	187,524,055		159,307,806
ARS	9,388,183		7,560,882
PGY	201,585,170		181,675,993
Goodwill	138,716,094		118,042,900
CLP	9,523,768		9,523,767
BRL	71,513,215		60,830,705
ARS	49,121,943		39,976,392
PGY	8,557,168		7,712,036
Property, plant and equipment	802,164,079		716,379,127
	359,735		404,450
CLP	278,823,163		273,812,253
BRL	242,342,171		201,527,151
ARS	184,544,077		152,227,991
PGY	96,094,933		88,407,282
Deferred tax assets	2,748,188		1,858,727
CLP	2,748,188		1,858,727
Total non-current assets	2,101,715,362		1,955,120,524
	116,131		673,524
	359,735		404,450
UF	77,918,684		34,246,313
CLP	660,402,048		704,866,666
BRL	792,070,032		720,101,807
ARS	263,024,678		215,679,566
PGY	307,824,054		279,148,198

All values are in US Dollars.

						12.31.2021
CURRENT LIABILITIES		90<br> days up to 1 year		Total		Up<br> to 90 days		90<br> days up to 1 year		Total
		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)		CLP (000’s)
Other current<br> financial liabilities	18,009,231		38,189,804		56,199,035		10,887,752		36,875,287		47,763,039
	250,625		9,141,481		9,392,106		233,993		8,329,598		8,563,591
UF	10,158,909		11,016,941		21,175,850		9,155,688		10,086,725		19,242,413
CLP	1,342,628		13,020,725		14,363,353		923,663		13,491,768		14,415,431
BRL	488,840		1,545,708		2,034,548		413,835		1,381,397		1,795,232
ARS	5,710,865		1,977,138		7,688,003		94,094		2,272,643		2,366,737
PGY	57,364		1,487,811		1,545,175		66,479		1,313,156		1,379,635
Current trade accounts<br> and other accounts payable	284,502,282		14,934,009		299,436,291		312,643,627		14,765,580		327,409,207
	26,626,920		-		26,626,920		20,438,936		1,309,678		21,748,614
	2,294,504		-		2,294,504		6,093,006		-		6,093,006
UF	2,331,374		-		2,331,374		2,359,381		-		2,359,381
CLP	120,569,647		14,934,009		135,503,656		142,370,837		13,455,902		155,826,739
BRL	71,508,904		-		71,508,904		74,142,872		-		74,142,872
ARS	50,068,446		-		50,068,446		52,030,144		-		52,030,144
PGY	11,102,487		-		11,102,487		15,208,451		-		15,208,451
Current accounts payable<br> to related entities	69,925,001		-		69,925,001		56,103,461		-		56,103,461
CLP	44,577,666		-		44,577,666		29,349,401		-		29,349,401
BRL	23,084,311		-		23,084,311		16,799,532		-		16,799,532
ARS	1,250,959		-		1,250,959		9,893,495		-		9,893,495
PGY	1,012,065		-		1,012,065		61,033		-		61,033
Other current provisions	1,010,800		263,867		1,274,667		1,082,929		445,950		1,528,879
CLP	1,010,800		217,964		1,228,764		1,082,929		404,580		1,487,509
PGY	-		45,903		45,903		-		41,370		41,370
Current tax liabilities	2,195,064		15,177,478		17,372,542		20,733,623		9,779,164		30,512,787
CLP	1,154,012		1,480		1,155,492		20,038,643		8,452		20,047,095
ARS	1,041,052		13,281,516		14,322,568		694,980		8,524,083		9,219,063
PGY	-		1,894,482		1,894,482		-		1,246,629		1,246,629
Current employee benefit<br> provisions	10,367,612		21,751,188		32,118,800		13,434,697		21,577,375		35,012,072
CLP	85,180		6,040,642		6,125,822		1,181,717		7,327,637		8,509,354
BRL	-		12,281,211		12,281,211		11,649,154		-		11,649,154
ARS	10,282,432		269,963		10,552,395		603,826		12,529,323		13,133,149
PGY	-		3,159,372		3,159,372		-		1,720,415		1,720,415
Other current non-financial<br> liabilities	481,641		16,941,003		17,422,644		612,391		30,625,443		31,237,834
CLP	465,036		16,938,197		18,349,107		612,391		30,472,381		31,084,772
ARS	16,605		2,806		19,411		-		18,234		18,234
PGY	-		-		-		-		134,828		134,828
Total current liabilities	386,491,631		107,257,349		493,748,980		415,498,480		114,068,799		529,567,279
	26,877,545		9,141,481		36,019,026		20,672,929		9,639,276		30,312,205
	2,294,504		-		2,294,504		6,093,006		-		6,093,006
UF	12,490,283		11,016,941		23,507,224		11,515,069		10,086,725		21,601,794
CLP	169,204,969		51,153,017		220,357,986		195,559,581		65,160,720		260,720,301
BRL	95,082,055		13,826,919		108,908,974		103,005,393		1,381,397		104,386,790
ARS	68,370,359		15,531,423		83,901,782		63,316,539		23,344,283		86,660,822
PGY	12,171,916		6,587,568		18,759,484		15,335,963		4,456,398		19,792,361

All values are in US Dollars.

	06.30.2022											12.31.2021
NON-CURRENT LIABILITIES	More<br> than 1 year<br><br> up to 3			More<br> than 3 and <br>up to 5			More<br> than 5 years			Total		More<br> than 1<br><br> year up to 3			More<br> than 3 and <br>up to 5		More<br> than 5<br><br> years			Total
			CLP (000’S)			CLP (000’S)			CLP (000’S)			CLP (000’S)		CLP (000’S)			CLP (000’S)		CLP (000’S)
Other non-current<br> financial liabilities		38,358,502			364,389,261			737,870,209			1,140,617,972		35,164,178			331,118,858		674,765,936			1,041,048,972
		1,532,796			340,387,569			273,159,056			615,079,421		1,726,426			308,546,732		247,094,136			557,367,294
UF		33,179,533			16,281,297			444,111,831			493,572,661		29,821,850			15,453,105		423,470,818			468,745,773
CLP		-			4,000,000			16,623,117			20,623,117		602,887			4,000,000		-			4,602,887
BRL		3,496,466			3,720,395			3,976,205			11,193,066		2,926,876			3,119,021		4,200,982			10,246,879
ARS		149,707			-			-			149,707		86,139			-		-			86,139
Non-current accounts payable		1,958,773			-			-			1,958,773		256,273			-		-			256,273
CLP		1,958,773			-			-			1,958,773		256,273			-		-			256,273
Accounts payable related<br> entities		13,587,372			-			-			13,587,372		11,557,723			-		-			11,557,723
BRL		13,587,372			-			-			13,587,372		11,557,723			-		-			11,557,723
Other non-current provisions		1,941,586			51,965,034			-			53,906,620		1,917,655			53,965,872		-			55,883,527
BRL		-			51,965,034			-			51,965,034		-			53,965,872		-			53,965,872
ARS		1,941,586			-			-			1,941,586		1,917,655			-		-			1,917,655
Deferred tax liabilities		26,184,893			41,804,772			104,703,072			172,692,737		21,365,277			35,470,702		111,618,848			168,454,827
CLP		3,334,531			1,866,350			86,263,653			91,464,534		3,619,149			1,845,868		95,076,888			100,541,905
BRL		-			39,938,422			-			39,938,422		-			33,624,834		-			33,624,834
ARS		22,850,362			-			-			22,850,362		17,746,128			-		-			17,746,128
PGY		-			-			18,439,419			18,439,419		-			-		16,541,960			16,541,960
Non-current employee benefit<br> provisions		1,446,597			65,977			13,408,250			14,920,824		1.329.992			62,456		12,747,222			14,139,670
CLP		687,486			65,977			13,408,250			14,161,713		629,798			62,456		12,747,222			13,439,476
PGY		759,111			-			-			759,111		700,194			-		-			700,194
Other non-financial liabilities		19,982			29,825,023			-			29,845,005		21,113			23,763,704		-			23,784,817
BRL		-			29,825,023			-			29,825,023		-			23,763,704		-			23,763,704
ARS		19,982			-			-			19,982		21,113			-		-			21,113
Total non-current liabilities		83,497,705			488,050,067			855,981,531			1,427,529,303		71,612,211			444,381,592		799,132,006			1,315,125,809
		1,532,796			340,387,569			273,159,056			615,079,421		1,726,426			308,546,732		247,094,136			557,367,294
UF		33,179,533			16,281,297			444,111,831			493,572,661		29,821,850			15,453,105		423,470,818			468,745,773
CLP		5,980,790			5,932,327			116,295,020			128,208,137		5,108,107			5,908,324		107,824,110			118,840,541
BRL		17,083,838			125,448,874			3,976,205			146,508,917		14,484,599			114,473,431		4,200,982			133,159,012
ARS		24,961,637			-			-			24,961,637		19,771,035			-		-			19,771,035
PGY		759,111			-			18,439,419			19,198,530		700,194			-		16,541,960			17,242,154

All values are in US Dollars.

31 – ENVIRONMENT (non-audited)

The Company has made disbursements for improvements in industrial processes, equipment to measure industrial waste flows, laboratory analysis, consulting on environmental impacts and others.

These disbursements by country are detailed as follows:

		2022 period						Future commitments
					Capitalized to						To be <br><br>Capitalized to
Country		Recorded as <br><br>Expenses			Property, <br><br>plant and <br><br>equipment			To be<br> <br><br>Recorded as <br> Expenses			Property, <br><br>plant and <br><br>equipment
	CLP (000’s)			CLP (000’s)			CLP (000’s)			CLP (000’s)
Chile			1,193,820			-			-			-
Argentina			121,261			626			-			-
Brazil			792,481			329,642			1,646,567			8,724
Paraguay			92,586			2,252			-			-
Total			2,200,148			332,520			1,646,567			8,724

32 – SUBSEQUENT EVENTS

No other events have occurred subsequent to June 30, 2022 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, August 10, 2022