Company: AKO-B
Filing Date: 2025-05-07
Form Type: 6-K
Source: 0001104659-25-045391
Chunk: 71

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-05-07
Form: 6-K
Chunk 71
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 –FINANCIAL RISK MANAGEMENT

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

Interest Rate Risk

At the closing date of these financial statements,
the Company maintains all of its debt obligations denominated in fixed rates in order to avoid fluctuations in financial expenses resulting
from an increase in interest rates.

The Company's indebtedness corresponds to six
bonds in the Chilean local market at fixed rates, which currently have an outstanding balance of UF14.09 million denominated in Unidades
de Fomento ("UF"), a debt indexed to inflation in Chile (the Company's sales are correlated to the variation of the UF). Of
the total bonds, five are redenominated through derivatives to Chilean Pesos (CLP) in their rate and notional value, maintaining the structure
of the bond.

On the other hand, the Company has incurred debt
obligations in the international market through a 144A/RegS bond issued in the US at a fixed rate in US dollars for an amount of USD 300
million, of this amount USD 150 Million have been redenominated through derivatives to Chilean pesos indexed to inflation (UF) and USD
150 million have been redenominated through derivatives to Chilean pesos (CLP) in their rate and nominal amount, while preserving the
bond’s structure. Furthermore, in September 2023, a bond was issued in the Swiss market for an amount of CHF 170 million at
a fixed rate in Swiss francs. Through derivatives, this bond's rate and nominal amount have been redenominated to Brazilian reals (BRL) while preserving the bond's structure.

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