Company: AKO-B
Filing Date: 2025-09-29
Form Type: 6-K
Source: 0001104659-25-094135
Chunk: 78

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-09-29
Form: 6-K
Chunk 78
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 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.

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| 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