Company: AKO-B
Filing Date: 2025-05-07
Form Type: 6-K
Source: 0001104659-25-045391
Chunk: 73

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-05-07
Form: 6-K
Chunk 73
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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 to or higher than                             
 Level 1 (Fitch) or equivalent for deposits of less than 1 year and rated A or higher (S&P) or equivalent for deposits of more than 
 1 year.                                                                                                                            |

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

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| 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