Coca-Cola Andina June 9-10 2020
Coca-Cola Andina at a Glance Products sold to Largest Coca-Cola bottler in Chile, Argentina ~260,000 and Paraguay 53 million 1 Customers 1 People 3 rd largest Coca-Cola bottler in Latin America covered and Brazil by volume 1 3 rd Revenue +6.3% Our Growth Formula Brazil 1 st Transactions 1 st +0.4% Chile (2019) Paraguay Volume -0.6% 1 st Argentina Market cap of Sugar Ranking by -4.2% sale volume 1 US$2.0 billion 4 Source: Company filings and public releases, Offering Memorandum, Bloomberg Notes: Figures as of September 30 th , 2019. LTM figures calculated as 2018 annual figures + 9M2019 figures - 9M2018 figures. 1 As of 2018 year end. 2 P&L figures converted from CLP to USD using average FX rate for period LTM 3Q19 of 684.2. Balance sheet items converted using EoP FX of 728.2. Figures in US$ millions. 3 As of December 31 st , 2019. 4 Market cap as of May 6th, 2020 converted to USD using a spot FX of 738
Our Response on Covid - 19 + 2.200 @Home Office ✓ Protecting our People & Stringent Health and Safety Protocols to ensure safety of our People and our ✓ our products Products, such as temperature check and social distancing methods. On Premise % Of Volume 2019 Production Plants and Distribution Centres are operational in all our Countries ✓ 13% Sales force and commercial teams are connected with customers ✓ Continuing Bars and Restaurants heavily affected due to quarantine and social distancing. ✓ to Serve our We are implementing credit and delivery to consumer solutions. Argentina Brasil Customers Digital Channels increasing volumes (mainly in Chile aprox. +500%) ✓ April/May: Total volumes down 19% (most affected are on premise and Argentina), ✓ Chile Paraguay Positives: increase in mix of refillables, Mom&Pops, and SSDs We expect shifts in shopping and lifestyle habbits in our Customers and ✓ Consumers Long Term Business We are adapting our business to ensure our operations are align to those shifts ✓ Sustainability
What makes us unique? Portfolio Development Towards a Total Beverage 1 Company NARTD ARTD Sports SSD Diageo Growth ~33% Juice Water Argentina Brazil Chile NART Ds Growth vs. S PL Y 22,8% Customers with license to sell ARTDs 22,2% 21,0% Fl. Water +11,5% past 12 months 15,8% 15,6% +17,1% since October (incorporation of Capel) Energy 12,3% 10,0% 4,6% 4,1% 3,6% 1,6% Monster Energy #1 in CL & may-19 jun-19 jul-19 ago-19 sep-19 oct-19 nov-19 dic-19 ene-20 feb-20 mar-20 abr-20 AR with our Commercial and Distribution Execution Customers with Spirits' purchase Customers without Spirits' purchase GAP Note: Only Main Brands Shown
What makes us unique? Refillable Bottles Strategy Towards a World Without 2 Waste % Refillables as of Total SSD Volume Country (*) Coca-Cola Andina FY2018 FY2019 Apr/May 2020 Argentina 24.0% 48.1% 63,0% Brazil 26.4% 25.2% 32.2% Chile 39.6% 44.7% 53.1% Paraguay 45.4% 46.3% 48.4% (*) Source: HSBC Global Beverages beyond plastic, FY 2018
What makes us unique? Strong Sugar Reduction and Stills & Low Cal Strategy 3 % No Sugar & LowCal of % Stills of Nartd Total Nartd Total Volume (*) Volume EBITDA Margin 4% 9% 25% 11% 24% 15% 4% 13% 19.6% 19.4% 18.3% 2010 2019 2010 2019 2010 2019 2010 2019 17.5% 16.1% Argentina Brazil Argentina Brazil 21% 53% 11% 25% 13% 29% 5% 19% 2010 2019 2010 2019 2010 2019 2010 2019 2014 2016 2017 2018 2019 Chile Paraguay Chile Paraguay Note: 2014 as baseline to include Polar, Ipiranga and last incidence adjustment (*) Sugar free + Mid cal volume (less than 5 gr of sugar/100 ml) over Total NARTD Volume
What makes us unique? Digital Capabilities for today’s business 4 Direc t to Consumer (D2C) T raditional T rade Distribution (T T D) Solution for high density cities Solution for low density cities 1. Digital Consumer micoca-cola.cl T ienda Coca-Cola Portfolio d elivery Pick-up Andina Deposito Consumidor T ienda Digitazing Our Consumidor Business d elivery #Orders/ Month: Andina 6.437 (+50% PY) 3. Digital 2. Digital Consumidor Mayorista Internal Customer Average Ticket: Processes $37.300
What makes us unique? High Performance, strongly committed Team 5 Organizational Climate Adherence Rate Experienced Senior Management 72% 69% 94% 93% 64% 58% Industry Company Experience Experience (Years) (Years) 24 8 88% Mig iguel Áng Ángel Peir eirano 87% Chief Executive Officer 22 17 José Luis Solórzano General Manager – Chile 30 8 Ren enato Barb Barbosa a General Manager – Brazil 2012 2015 2017 2019 2012 2015 2017 2019 26 26 Fabián Castelli General Manager – Argentina of employees declare to be of employees would like to 81% 93% fully engaged with Coca-Cola stay for at least 2 more years Francisco San Fr Sanfurgo 31 14 Andina’s main business goals in Coca-Cola Andina General Manager - Paraguay
EBITDA (MM$) 348.869 337.890 324.964 1 Portfolio Development 103.959 93.701 Strong Refillables 2 2017 2018 2019 1Q19 1Q20 2017 2018 2019 1Q19 1Q20 Sugar Reduction & EBITDA Margin 3 Stills Growth 20,9% 20,6% Digital Capabilities 4 19,6% 19,4% 18,3% High Performance 5 Team 2017 2018 2019 1Q19 1Q20 2017 2018 2019 1Q19 1Q20 Source: Coca-Cola Andina, Company Fillings
Coca-Cola Andina June 9-10 2020
Agenda Page Corporate Presentation 1T 20 [ C L I E N T N A M E ]
In line with our constant effort to improve communication with the financial market and Agenda at the same time reduce waste generation, Page we have developed the Coca-Cola Andina IR App. This is an investor relations application, and we will begin a 100% digital communication plan of our Financial Information. You can download our application from the App Store and Google Play. #goPaperless [ C L I E N T N A M E ]
1. Company Description Agenda Page [ C L I E N T N A M E ]
History Merger with KO Polar (incorporation of new Agreement During April we began Coca-Cola System territories in Argentina, for Andina listed on distributing AdeS Andina joint venture (50/50) Chile & Paraguay). distributing the NYSE. products, reinforcing becomes the for the water and Andina buys 40% stake Pisco Capel in Franchise the growth trend of Coca-Cola TCCC acquires juice business in Brazil in Sorocaba Refrescos. Chile acquired in Brazil new categories. bottler in 11% of Andina and Chile Chile 2019 2017 2007 & 2008 2012 1994 1996 1946 2011 2000 1995 & 1996 1985 2013 2018 New bottling facility Controlling Andina acquires Andina acquires Franchise acquired NVG territories in Chile begins Shareholders Ipiranga, a Coca-Cola Guallarauco. Agreement in Argentina acquired in Brazil operations. acquire 50 % of bottler in Brazil for distributing Diageo’s Restructuring of the Company Alcoholic beverages. Duque juice business de Caxias new plant begins through joint operations in Brazil venture with Coca- Cola bottlers in Chile 3
A regional and diversified platform (FY19) Volume Revenues Adjusted EBITDA 9% 9% 12% 32% 34% 38% 24% 22% 16% 35% 35% 34% US$2,495 MM 746 MM UCs US$491 MM Chile Brazil Territories: majority of the State of Rio de Territories: Antofagasta, Atacama, Coquimbo, Janeiro, Espírito Santo, part of Sao Paulo and part Metropolitan Region, San Antonio, Cachapoal, of Minas Gerais Aysen & Magallanes Extension: 398 thousand Km2 Extension: 165 thousand Km2 Population covered: 9.9 million Population covered: 23.1 million Total volume FY 2019: 239.6 million UCs Total volume FY 2019: 259.3 million UCs Argentina Paraguay Territories: Ciudad del Este, Asunción, Coronel Territories: San Juan, Mendoza, San Luis, Oviedo, Encarnación Córdoba, most of Santa Fé, Entre Ríos, La Extension: 407 thousand Km2 Pampa, Neuquén, Rio Negro, Chubut, Santa Cruz, Tierra del Fuego & Western Province of Buenos Population covered: 7.2 million Aires Total volume FY 2019: 69.3 million UCs Extension: 1.9 million Km2 Population covered: 13.9 million Total volume FY 2019: 178.2 million UCs 4 Source: Company filings and public releases
Ownership (As of March 31, 2020) 55.7% 30.2% Controlling Group 42.9% Series A Series B Others 37.0% Coca-Cola 7.3% ADRs 2.4% Chilean Pension Funds 10.3% The Controlling Group is composed of 5 Chilean families with equal parts, that have a shareholders’ agreement which includes TCCC. Series A elects 12 of 14 Board members. Series B receives an additional 10% in dividends. 5
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