| Filed by Embotelladora Andina S.A. |
| Pursuant to rule 425 under the Securities Act of 1933 |
| Subject Company: Embotelladoras Coca-Cola Polar S.A. |
| Commission File No. 001-13142 |
EMBOTELLADORAS COCA-COLA POLAR S.A.
Interim consolidated financial statements
March 31, 2012
(A free translation from the original in Spanish)
CONTENTS
Interim consolidated statement of income |
Ch$ | - | Chilean pesos |
ThCh$ | - | Thousands of Chilean pesos |
UF | - | Unidad de Fomento (an official inflation-indexed monetary unit) |
US$ | - | US Dollar |
Arg$ | - | Argentine pesos |
GS | - | Paraguayan Guarani |
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Notes |
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EMBOTELLADORAS COCA-COLA POLAR S.A. AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of March 31, 2012 and December 31, 2011
|
|
|
| March, 31 |
| December, 31 |
|
|
| Note |
| 2012 |
| 2011 |
|
|
|
|
| ThCh$ |
| ThCh$ |
|
ASSETS |
|
|
|
|
|
|
|
Cash & cash equivalents |
| (5) |
| 23.133.810 |
| 21.655.721 |
|
Other non-financial assets |
|
|
| 1.751.317 |
| 1.445.854 |
|
Trade & other accounts receivable |
| (16.1 a) |
| 30.061.291 |
| 30.917.590 |
|
Accounts receivable from related entities |
| (10 a) |
| 3.455.507 |
| 4.714.831 |
|
Inventories |
| (4) |
| 21.609.297 |
| 23.099.370 |
|
Current tax assets |
|
|
| 1.470.511 |
| 2.217.661 |
|
Total Current assets |
|
|
| 81.481.733 |
| 84.051.027 |
|
|
|
|
|
|
|
|
|
Other non-financial assets |
|
|
| 1.611.066 |
| 1.614.484 |
|
Investments in associates using the equity method |
| (11 b) |
| 6.780.283 |
| 6.658.180 |
|
Intangible assets other than goodwill |
| (13) |
| 2.586.760 |
| 2.660.960 |
|
Goodwill |
| (14) |
| 9.023.552 |
| 9.454.266 |
|
Property, plant & equipment |
| (7 a) |
| 161.924.808 |
| 167.627.602 |
|
Deferred tax assets |
| (6 b) |
| 6.106.685 |
| 6.053.408 |
|
Total non-current assets |
|
|
| 188.033.154 |
| 194.068.900 |
|
Total assets |
|
|
| 269.514.887 |
| 278.119.927 |
|
The accompanying Notes 1 to 20 form an integral part of these interim financial statements.
EMBOTELLADORAS COCA-COLA POLAR S.A. AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as of March 31, 2012 and December 31, 2011
|
|
|
| March, 31 |
| December, 31 |
|
|
| Note |
| 2012 |
| 2011 |
|
|
|
|
| ThCh$ |
| ThCh$ |
|
LIABILITIES |
|
|
|
|
|
|
|
Other financial liabilities |
| (16.2 b) |
| 9.645.370 |
| 10.179.516 |
|
Trade & other accounts payable |
| (16.2 b) |
| 34.214.301 |
| 43.003.149 |
|
Accounts payable to related entities |
| (10 b) |
| 13.441.757 |
| 6.807.547 |
|
Other provisions |
| (12 a) |
| 1.834.743 |
| 1.913.943 |
|
Tax liabilities |
|
|
| 92.537 |
| — |
|
Other non-financial liabilities |
| (15 e) |
| 29.565.200 |
| 3.376.811 |
|
Total current liabilities |
|
|
| 88.793.908 |
| 65.280.966 |
|
|
|
|
|
|
|
|
|
Other financial liabilities |
| (16.2 b) |
| 70.107.975 |
| 69.590.825 |
|
Other accounts payable |
| (16.2 b) |
| 4.714.193 |
| 4.928.209 |
|
Deferred tax liabilities |
| (6 b) |
| 9.624.555 |
| 10.125.957 |
|
Total non-current liabilities |
|
|
| 84.446.723 |
| 84.644.991 |
|
|
|
|
|
|
|
|
|
Paid-in capital |
|
|
| 39.685.061 |
| 39.685.061 |
|
Accumulated earnings |
|
|
| 71.056.085 |
| 91.212.166 |
|
Share premium |
|
|
| 182.060 |
| 182.060 |
|
Other reserves |
| (15 f) |
| (16.508.274 | ) | (4.818.067 | ) |
Total equity attributable to owners of the controller |
|
|
| 94.414.932 |
| 126.261.220 |
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|
|
|
|
|
|
|
|
Non-controlling interest |
| (15 h) |
| 1.859.324 |
| 1.932.750 |
|
Total equity |
|
|
| 96.274.256 |
| 128.193.970 |
|
Total liabilities & equity |
|
|
| 269.514.887 |
| 278.119.927 |
|
The accompanying Notes 1 to 20 form an integral part of these interim financial statements.
EMBOTELLADORAS COCA-COLA POLAR S.A. AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the periods of three months ended on march 31, 2012 and 2011
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| Accumulated to March 31, |
| ||
|
| Note |
| 2012 |
| 2011 |
|
|
|
|
| ThCh$ |
| ThCh$ |
|
INTERIM STATEMENT OF INCOME |
|
|
|
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|
|
|
Ordinary revenues |
| (8 a) |
| 86.345.178 |
| 69.003.494 |
|
Cost of sale |
| (8 b) |
| (52.869.631 | ) | (41.515.761 | ) |
Gross margin |
|
|
| 33.475.547 |
| 27.487.733 |
|
|
|
|
|
|
|
|
|
Other revenue |
| (8 a) |
| 47.769 |
| 41.301 |
|
Distribution costs |
| (8 b) |
| (12.940.337 | ) | (8.924.258 | ) |
Administrative expenses |
| (8 b) |
| (3.470.736 | ) | (3.612.713 | ) |
Other expenses, by function |
| (8 b) |
| (8.813.447 | ) | (6.222.792 | ) |
Other losses |
| (8 d) |
| (695.470 | ) | (746.781 | ) |
Financial income |
|
|
| 255.565 |
| 310.084 |
|
Financial costs |
| (8 c) |
| (1.475.673 | ) | (1.210.495 | ) |
Interest in earnings (loss) of associates recorded by the equity method |
| (11 d) |
| 122.103 |
| 111.143 |
|
Exchange differences |
|
|
| 344.084 |
| 868.270 |
|
Indexation adjustments |
|
|
| 3.277 |
| 146 |
|
Earnings before tax |
|
|
| 6.852.682 |
| 8.101.638 |
|
Income tax charge |
| (6 c) |
| (737.483 | ) | (433.608 | ) |
Earnings for the period |
|
|
| 6.115.199 |
| 7.668.030 |
|
|
|
|
|
|
|
|
|
Earnings attributable to: |
|
|
|
|
|
|
|
Owners of the controller |
|
|
| 6.032.308 |
| 7.572.320 |
|
Non-controling interest |
| (15 h) |
| 82.891 |
| 95.710 |
|
Earnings for the period |
|
|
| 6.115.199 |
| 7.668.030 |
|
|
|
|
| Ch$ |
| Ch$ |
|
Earnings per share |
|
|
|
|
|
|
|
Earnings per share (basic & diluted) |
| (15 d) |
| 21,54 |
| 27,04 |
|
The accompanying Notes 1 to 20 form an integral part of these interim financial statements.
EMBOTELLADORAS COCA-COLA POLAR S.A. AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(continued)
For the periods of three months ended on march 31, 2012 and 2011
|
| Accumulated to March, 31 |
| ||
|
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Other compressive income |
|
|
|
|
|
Earnings for period |
| 6.115.199 |
| 7.668.030 |
|
|
|
|
|
|
|
Foreign currency translation adjustment |
| (11.846.524 | ) | 13.145.569 |
|
Total comprehensive result |
| (5.731.325 | ) | 20.813.599 |
|
|
|
|
|
|
|
Comprehensive income attributable to: |
|
|
|
|
|
Owners of the controller |
| (5.657.899 | ) | 20.439.633 |
|
Non-controling interest |
| (73.426 | ) | 373.966 |
|
Total comprehensive income |
| (5.731.325 | ) | 20.813.599 |
|
The accompanying Notes 1 to 20 form an integral part of these interim financial statements.
EMBOTELLADORAS COCA-COLA POLAR S.A. AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
As of March 31, 2012 and 2011, and December 31, 2011
|
|
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|
| Change in other reserves |
|
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| Total equity |
|
|
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| ||
|
|
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|
|
| Various |
|
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| Accumulated |
| attributable |
| Non- |
|
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|
| Paid-in |
| Share |
| other |
| Translation |
| earnings |
| to owners of |
| controling |
|
|
|
Detail |
| capital |
| premium |
| reserves |
| reserves |
| (loss) |
| the controller |
| interest |
| Total equity |
|
Initial balance at 01.01.2012 |
| 39.685.061 |
| 182.060 |
| (3.243.316 | ) | (1.574.751 | ) | 91.212.166 |
| 126.261.220 |
| 1.932.750 |
| 128.193.970 |
|
Changes (Presentation) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings |
| — |
| — |
| — |
| — |
| 6.032.308 |
| 6.032.308 |
| 82.891 |
| 6.115.199 |
|
Other Comprehensive Income |
| — |
| — |
| — |
| (11.690.207 | ) | — |
| (11.690.207 | ) | (156.317 | ) | (11.846.524 | ) |
Dividends |
| — |
| — |
| — |
| — |
| (26.188.389 | ) | (26.188.389 | ) | — |
| (26.188.389 | ) |
Changes in Equity |
| — |
| — |
| — |
| (11.690.207 | ) | (20.156.081 | ) | (31.846.288 | ) | (73.426 | ) | (31.919.714 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing balance at 31.03.2012 |
| 39.685.061 |
| 182.060 |
| (3.243.316 | ) | (13.264.958 | ) | 71.056.085 |
| 94.414.932 |
| 1.859.324 |
| 96.274.256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial balance at 01.01.2011 |
| 39.685.061 |
| 182.060 |
| (3.243.316 | ) | (15.484.337 | ) | 86.982.115 |
| 108.121.583 |
| 1.307.883 |
| 109.429.466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes (Presentation) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings |
| — |
| — |
| — |
| — |
| 23.240.036 |
| 23.240.036 |
| 341.784 |
| 23.581.820 |
|
Other Comprehensive Income |
| — |
| — |
| — |
| 13.909.586 |
| — |
| 13.909.586 |
| 283.083 |
| 14.192.669 |
|
Dividends |
| — |
| — |
| — |
| — |
| (19.009.985 | ) | (19.009.985 | ) | — |
| (19.009.985 | ) |
Changes in Equity |
| — |
| — |
| — |
| 13.909.586 |
| 4.230.051 |
| 18.139.637 |
| 624.867 |
| 18.764.504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing balance at 31.03.2011 |
| 39.685.061 |
| 182.060 |
| (3.243.316 | ) | (1.574.751 | ) | 91.212.166 |
| 126.261.220 |
| 1.932.750 |
| 128.193.970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial balance at 01.01.2011 |
| 39.685.061 |
| 182.060 |
| (3.243.316 | ) | (15.484.337 | ) | 86.982.115 |
| 108.121.583 |
| 1.307.883 |
| 109.429.466 |
|
Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings |
| — |
| — |
| — |
| — |
| 7.572.320 |
| 7.572.320 |
| 95.710 |
| 7.668.030 |
|
Other Comprehensive Income |
| — |
| — |
| — |
| 12.867.313 |
| — |
| 12.867.313 |
| 278.256 |
| 13.145.569 |
|
Changes in Equity |
| — |
| — |
| — |
| 12.867.313 |
| 7.572.320 |
| 20.439.633 |
| 373.966 |
| 20.813.599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing balance at 31.03.2011 |
| 39.685.061 |
| 182.060 |
| (3.243.316 | ) | (2.617.024 | ) | 94.554.435 |
| 128.561.216 |
| 1.681.849 |
| 130.243.065 |
|
The accompanying Notes 1 to 20 form an integral part of these interim financial statements.
EMBOTELLADORAS COCA-COLA POLAR S.A. Y SUBSIDIARIAS
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
For the periods of three months ended on March 31, 2012 and 2011
|
|
|
| Accumulated to March 31, |
| ||
Statement of cash flows (direct method) |
| Note |
| 2012 |
| 2011 |
|
|
|
|
| ThCh$ |
| ThCh$ |
|
Cash flows from (used in) operating activities |
|
|
|
|
|
|
|
Proceeds of sales of goods & provision of services |
|
|
| 113.446.908 |
| 93.136.761 |
|
Payments to suppliers of goods & services |
|
|
| (78.549.803 | ) | (63.062.712 | ) |
Payment to & on behalf of employees |
|
|
| (11.962.417 | ) | (10.227.156 | ) |
Other operating activity payments |
|
|
| (8.077.538 | ) | (6.035.183 | ) |
Income tax paid |
|
|
| (851.179 | ) | (828.546 | ) |
Other cash inflows (outflows) |
|
|
| (1.541.787 | ) | (795.732 | ) |
|
|
|
|
|
|
|
|
Cash flow from (used in) operating activities |
|
|
| 12.464.184 |
| 12.187.432 |
|
|
|
|
|
|
|
|
|
Cash flows from (used in) investment activities |
|
|
|
|
|
|
|
Interest received |
|
|
| 165.574 |
| 561.485 |
|
Purchases of property, plant & equipment |
|
|
| (8.348.918 | ) | (9.329.978 | ) |
Purchases of intangible assets |
|
|
| (66.508 | ) | (12.476 | ) |
Cash flows used to purchase non-controller participations |
|
|
| — |
| (2.364.260 | ) |
Other cash flows from investment activities |
|
|
| — |
| 11.652.690 |
|
|
|
|
|
|
|
|
|
Cash flow from (used in) investment activities |
|
|
| (8.249.852 | ) | 507.461 |
|
|
|
|
|
|
|
|
|
Cash flows from (used in) financing activities |
|
|
|
|
|
|
|
Loan repayments |
|
|
| — |
| (11.767.556 | ) |
Interest paid |
|
|
| (1.027.865 | ) | (1.465.369 | ) |
|
|
|
|
|
|
|
|
Cash flow from (used in) financing activities |
|
|
| (1.027.865 | ) | (13.232.925 | ) |
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS |
|
|
| 3.186.467 |
| (538.032 | ) |
EFFECTS OF EXCHANGE RATE VARIATIONS ON CASH & CASH EQUIVALENTS |
|
|
| (1.708.378 | ) | 1.695.182 |
|
CASH & CASH EQUIVALENTS AT START OF THE PERIOD |
|
|
| 21.655.721 |
| 34.271.600 |
|
|
|
|
|
|
|
|
|
CASH & CASH EQUIVALENTS AT CLOSE OF THE PERIOD |
| (5) |
| 23.133.810 |
| 35.428.750 |
|
The accompanying Notes 1 to 20 form an integral part of these interim financial statements.
EMBOTELLADORAS COCA-COLA POLAR S.A. AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS OF THREE MONTHS AND A YEAR ENDED
ON MARCH 31, 2012 AND DECEMBER 31, 2011
NOTE 1 - CORPORATE INFORMATION
1.1 General
Embotelladoras Coca-Cola Polar S.A. (“Coca-Cola Polar” or “the Company”) and Subsidiaries (“the Group”) is the owner of franchised bottlers of The Coca-Cola Company in Chile, Argentina and Paraguay. Each territory has a separate and independent franchising agreement with The Coca-Cola Company covering the production and distribution of the products of the Coca-Cola brand.
Coca-Cola Polar operates Coca-Cola franchises in Chile’s II, III, IV, XI and XII Regions.
Coca-Cola Polar Argentina S.A. attends the franchises of the provinces of Santa Cruz, Neuquén, El Chubut, Tierra del Fuego, Rio Negro, La Pampa and the western part of the province of Buenos Aires.
Paraguay Refrescos S.A. has the franchise for the whole of the Republic of Paraguay.
The franchises for these territories operate for renewable periods of 5 years. The next renewal period of these franchises is in 2014.
The parent Embotelladoras Coca-Cola Polar S.A. is an open corporation regulated by the Superintendency of Securities and Insurance (“SVS”) and is registered in the Securities Register in Santiago, Chile under No.0388. The Company’s shares are traded in the Chilean stock market.
Embotelladoras Coca-Cola Polar S.A. is domiciled at Avenida Nueva Tajamar 481, 4th floor, South Tower, Las Condes, Santiago, Chile and its tax registration number is 93.473.000-3.
The board approved the interim consolidated financial statements as of March 31, 2012 at its meeting held on May 30, 2012.
1.2 Merger of the Company
According to the information reported to the SVS on March 30, 2012, Embotelladoras Coca Cola Polar S.A. (“Kopolar”), and its controllers, and Embotelladora Andina S.A. (“Andina”), and its controllers, signed a merger agreement whose main provisions were as follows:
a) To merge Kopolar by incorporating in Andina (“Merger”). Kopolar will be dissolved and will therefore transfer to Andina all of its assets and liabilities, and the shareholders of Kopolar receiving as the sole consideration 0.33269 Series A and 0.33269 Series B shares in Andina for each share of Kopolar (“Exchange Ratio”), issuing for this purpose 186,304,194 new shares of Andina, which will represent 19.68% of the total shares into which the capital of Andina will be divided following the Merger (the “Merger Shares”).
b) A public deed of formalization will be signed declaring that the Merger has been completed on the date of such deed. The signing of the Formalization Deed will be subject to compliance or renunciation, as the case may be, with the following Conditions Precedent: (i) that all the permits and authorizations necessary for the completion of the Merger and others required by law, regulations, by—laws and/or contracts signed by Andina or Kopolar are obtained promptly; (ii) that the authorizations of The Coca-Cola Company (“KO”) be obtained promptly to carry out the Merger; (iii) that, except for the Merger Shares, the number of shares in twhich the capital of Andina is divided remains unchanged, as well as their preferences and shares in which the capital of Kopolar is divided; (iv) that there is no official order or legal proceedings brought by third parties in order to obstruct the validity or detain the Merger process which the Parties believe has some possibility of success; and (v) that the right to withdraw that shareholders of Andina and of Kopolar might exercise due to the Merger does not exceed 5% of the total shares issued with voting rights of Andina or Kopolar prior to the Merger, as may be the case.
c) The Merger Agreement should be completed and the Formalization Deed signed no later than August 31, 2012 provided that, during that term, the Conditions Precedent have been met or renounced, as the case may be.
d) The following will serve as a basis for the Merger: (i) the expert merger report as referred to in article 99 of the Corporations Law 18,046, (ii) balance sheets of Andina and Polar as of March 31, 2012, audited by their respective auditors, and (iii) the merged balance sheet of Kopolar and Andina.
e) The board of Andina will distribute the Merger Shares among the shareholders of Kopolar prorated to the shares each has registered in their name in the shareholders register of 5 days prior to the date from which the Exchange Right can be exercised.
f) Prior to completing the Merger, and subject to the approval of their shareholder meetings, Andina and Kopolar will distribute dividends to their respective shareholders, in addition to those already declared and distributed, of Ch$28,155,862,307 and Ch$29,565,609,857 respectively, which represents Ch$35.27 per A share and Ch$38.80 per B share in the case of Andina and Ch$105.59 per share in the case of Kopolar.
g) The Parties agree to submit to Chilean law and to resolve any matter arising from the Merger Agreement through arbitration (“árbitro mixto”).
NOTE 2 - ACCOUNTING CRITERIA APPLIED
a) Accounting Period
The interim consolidated financial statements cover the following periods:
· | Interim consolidated statements of financial position: |
| Ended March 31, 2012 compared to December 31, 2011. |
· | Interim statement of comprehensive income & statement of cash flows: |
| For the periods ended March 31, 2012 & 2011 |
· | Statement of changes in equity: |
| Balances & movement between January 1 & March 31, 2012 & 2011, and December 31, 2011. |
b) Preparation
These interim consolidated financial statements of Embotelladoras Coca Cola Polar S.A. have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (“IASB”).
The accounting policies have been applied uniformly in all the periods compared in these interim consolidated financial statements.
These interim consolidated financial statements have been prepared under the historic cost principle, except for financial assets valued at fair value through profit and loss.
The figures included in the accompanying consolidated financial statements are expressed in thousands of Chilean pesos, the Chilean peso being the Company’s functional currency.
c) Consolidation
Subsidiaries are all the entities over which Embotelladoras Coca-Cola Polar S.A. has the power to govern their operative and financial policies. The subsidiaries are consolidated from the date on which control is transferred to the Group and are discontinued from the date on which the control ceases.
The group uses the purchase method to book the acquisition of a subsidiary. The cost of an acquisition is determined as the fair value of the assets received, and equity instruments issued and liabilities incurred or assumed on the date of exchange. The identifiable assets acquired, and the liabilities and contingent liabilities assumed in a combination of businesses, are valued initially at their fair values of the date of acquisition, regardless of the size of any minority interest. The excess of the cost over the fair value of the Group’s participation in the net identifiable assets acquired is recorded as goodwill. If the cost is less than the fair value of the net assets of the subsidiary acquired, the difference is recorded immediately in the statement of comprehensive income.
Transactions, balances and unrealized gains between Group companies are eliminated. Also eliminated are unrealized losses unless the transaction shows impairment in the value of the asset transferred. The accounting policies of the subsidiaries have been modified as necessary to ensure uniformity with the policies adopted by the Group.
The following are the companies included in the consolidation:
|
|
|
|
|
| Interest Percentage |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| December |
|
|
|
|
| Country |
| March 2012 |
| 2011 |
| ||||
Tax ID No. |
| Name |
| of Origin |
| Direct |
| Indirect |
| Total |
| Total |
|
96.928.520-7 |
| Transportes Polar S.A. |
| Chile |
| 99,99 |
| — |
| 99,99 |
| 99,99 |
|
96.971.280-6 |
| Inversiones Los AndesLtda. |
| Chile |
| 99,99 |
| — |
| 99,99 |
| 99,99 |
|
Foreign |
| Coca-Cola Polar Argentina S.A. |
| Argentina |
| 5,00 |
| 95,00 |
| 100,00 |
| 100,00 |
|
Foreign |
| Paraguay Refrescos S.A. |
| Paraguay |
| 0,08 |
| 97,75 |
| 97,83 |
| 98,00 |
|
Foreign |
| Kopolar Refrescos S.A. |
| Paraguay |
| — |
| — |
| — |
| 100,00 |
|
Foreign |
| Aconcagua Investing S.A. |
| British Vírgin |
| 0,71 |
| 99,29 |
| 100,00 |
| 100,00 |
|
|
|
|
| Islands |
|
|
|
|
|
|
|
|
|
d) Foreign currency translation
· Functional and presentation currency
The items included in the financial statements of each of the Group companies are shown in the currency of the primary economic environment in which the Company operates (functional currency). The consolidated financial statements are shown in Chilean pesos which is the functional currency and the parent’s presentation currency.
· Transactions and balances
Foreign currency transactions are translated to the functional currency using the exchange rates on the dates of the transactions.
Gains and losses from exchange differences resulting from the payment of such transactions and the translation at each period’s closing exchange rate of monetary assets and liabilities denominated in foreign currency are recorded in the statement of comprehensive income.
The exchange rates and amounts outstanding at the close of each period are the following:
Date |
| Ch$ / US$ |
| Arg$ /US$ |
| GS/ US$ |
| Ch$ / UF |
|
March 31, 2012 |
| 487,44 |
| 4,38 |
| 4.275,00 |
| 22.533,51 |
|
December 31, 2011 |
| 519,20 |
| 4,30 |
| 4.400,00 |
| 22.294,03 |
|
March 31, 2011 |
| 479,46 |
| 4,05 |
| 4.070,00 |
| 21.578,26 |
|
· Group companies
The results and financial position of all the Group entities (none of which operates in a hyper-inflationary economy) which have a functional currency other than the currency of presentation are translated as follows:
a) Assets and liabilities are translated at the exchange rate on the date of closing;
b) Revenues and expenses in each statement of results are translated at the monthly average exchange rate; and
c) All exchange differences resulting from (a) and (b) above are recorded as a separate component of equity.
The Group companies having a functional currency other tan the currency of presentation are:
Company |
| Functional Currency | |
|
|
| |
Coca Cola Polar Argentina S.A. |
|
| Argentine pesos |
Paraguay Refrescos S.A. |
|
| Guaranies |
For the purposes of consolidation, exchange differences that arise from the translation of the net investment in foreign entities, debt and other monetary instruments designated as hedges for such investments, are recorded in equity (other comprensive income).
When a foreign investment is realized, such exchange differences are recorded in the statement of comprehensive results in the respective period.
Goodwill and adjustments to fair value arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and are translated at the exchange rate on the date of closing.
e) Investment in Associates
Associates are all entities over which the Group exercises significant influence. Investments in associates are recorded using the equity method. The Group’s investment in associates considers the goodwill identified at the time of the acquisition (net of any accumulated loss for impairment).
The Group’s interest in the earnings or losses following the acquisition of the associates is recorded in the statement of comprehensive income. Movements in the equity reserves of associates occurring after the acquisition are recorded in the Company’s equity reserves.
When the Group’s interest in the losses of an associate is equal to or exceeds its interest in the equity of the associate, including any unsecured account receivable, the group does not book any additional loss unless it has incurred obligations or made payments on behalf of the associate.
Unrealized earnings on transactions between the Group and its associates are eliminated in proportion to the Group’s interest in the associate. Also eliminated are unrealized losses unless the transaction shows impairment in the value of the asset transferred. The accounting policies of the associates have been modified as necessary to ensure uniformity with the policies adopted by the Group.
f) Goodwill
Goodwill represents the excess between the acquisition cost and the Group’s interest in the fair value of the net identifiable assets of a subsidiary or associate on the date of acquisition.
In the case of the acquisition of subsidiaries, this excess is treated as goodwill, while in the acquisition of associates it is considered as part of Investments in associates recorded using the equity method.
Goodwill is not subject to amortization. Its impairment is tested annually and if it exists it is recorded as a loss in the statement of comprehensive income. To assess its impairment, it is assigned to the cash-generating unit, which represents the Group’s investment in the country where it operates.
In the event of the disposal of the investment, the goodwill forms part of the total cost of the investment.
g) Intangible Assets
· Rights
These relate to premiums paid by the Argentine subsidiary related to the acquisition of territories and acquisition of rights to market and distribute products of the Benedictino brand made by Embotelladoras Coca-Cola Polar S.A.
The rights are recorded at historic cost and are not subject to amortization as their useful lives are indefinite.
Their impairment is tested annually and if it exists it is recorded to the statement of comprehensive income. To evaluate its impairment, it is assigned to the cash-generating unit, which represents the Group’s investment in the country where it operates or the specific category that originated it.
· Software
Software licenses acquired are capitalized based on the costs incurred in acquiring or placing in use the specific computer program. These costs are amortized over the term of their estimated useful lives.
Costs associated with the development or maintenance of computer programs are recorded as an expense in the period in which they are incurred. However, disbursements directly associated with the production of “specific and identifiable” computer programs controlled by the Group, and which will generate economic benefits over and above their costs for more than a year, are recorded as intangible assets. The direct costs include the costs of the employees who develop the computer programs and a portion of the corresponding indirect costs.
h) Property, Plant and Equipment
The Company records the property, plant and equipment goods at their historic cost (which includes the attributed cost determined by revaluations made in accordance with IFRS 1, First adoption), less accumulated depreciation. The historic cost includes all disbursements made that are directly attributable to the acquisition of the assets.
Financing costs attributable to the construction of property, plant and equipment are capitalized at their cost until the date when they are ready to be used.
Subsequent disbursements related to the maintenance and repair of assets are recorded as expenses in the period in which incurred. However, there are future disbursements (additions or improvements) that are included in the value of the asset or recorded as a separate asset, when the following conditions are met:
· that these assets will generate future economic benefits for the company; and
· that the cost of these assets can be measured reliably.
The residual values and remaining useful lives of the assets are reviewed and adjusted if necessary at the end of each period.
The depreciation of property, plant and equipment is calculated using the straight-line method over the remaining useful lives of the respective assets. The useful lives determined by types of assets are as follows:
Assets |
| Range years | |
|
|
| |
Buildings |
| 40 - 80 |
|
Plant & equipment |
|
|
|
Machinery |
| 15 - 20 |
|
Transportation equipment |
| 10 |
|
Computer equipment |
| 3 |
|
Motor vehicles |
| 10 |
|
Other property, plant & equipment |
|
|
|
Market assets |
| 8 |
|
Crates & bottles |
| 4 - 8 |
|
Gains and losses on sales of property, plant and equipment relate to the difference between the proceeds of the transaction and the book value of the assets, which are shown in the statement of comprehensive income in the period in which they are realized, in other revenue or Other expenses, as the case may be.
i) Impairment of Non-Financial Assets
Assets that have an indefinite useful life and are not subject to amortization are tested annually for impairment of their value. Assets subject to amortization are tested for impairment when economic events or changes occur that indicate that their value may not be recoverable. When the book value of an asset exceeds its recoverable value, a loss for impairment is recorded in the statement of income and its amount is reduced to the recoverable value.
The recoverable value of an asset is defined as the greater of the net sale price and its value in use. The net sale price is the amount that can be obtained from the sale of an asset in a free market, less the costs of sale. Value in use is the present value of the estimated future cash flows to be generated by the continual use of an asset and by its disposal at the end of its useful life. The present value is determined by using a discount rate that reflects the present value of such cash flows and the specific risks of the asset. Recoverable amounts are estimated for each asset or, if not possible, for the cash generating unit that represents the smallest group of assets that generate independent cash flows.
The book values of non-financial assets other than goodwill that have been subject to write-downs for impairment are revised on each reporting date to check for possible reversals of impairment which, if any, are recorded as a gain in the period of such reversal.
j) Financial Assets
The Company classifies its investments in the following categories: (a) financial assets at fair value through profit and loss, and (b) loans and accounts receivable. The Company has no financial assets classified as investments held to maturity, nor such assets available for sale. The classification depends on the purpose for which the financial assets are acquired. The management determines the classification of financial assets at the time of their initial recording and re-evaluates this classification on the date of each closing.
· Financial assets at fair value with changes to results
This category comprises financial assets acquired principally for being traded in the short term.
The financial assets defined in this category are valued at fair value, recording variations in this value to the statement of income.
· Loans and accounts receivable
Loans and accounts receivable are non-derivative financial assets with fixed or determinable payments which are not quoted on an active market. They arise when the Group provides money, goods or services directly to a debtor without the intention to negotiate the account receivable. They are included in current assets, except for those with maturities of over 12 months from the date of the statement of financial position which are classified as non-current assets. Loans and accounts receivable are included in Trade and other accounts receivable in the statement of financial position.
The concepts included in this category are valued initially at their fair value. They are later recorded using the amortized-cost method based on the effective interest rate, recording financial income for the period between its recording and its payment. As the accounts receivable have very short maturities, the Company records them at their nominal value.
The Company evaluates at the date of each closing whether there is objective evidence that a financial asset or group of financial assets may have suffered losses through impairment. Indicators of possible impairment of accounts receivable include financial difficulties of the debtor, and the probability that the debtor is going to begin bankruptcy proceedings or financial reorganization or default or non-payment.
Should they exist, a provision is made to record the losses for impairment. The amount of this provision is the difference between the record value of the asset and the present value of the estimated future cash flows to be recovered, discounted at the effective interest rate. The record value of the asset is reduced through the provision and the amount of the loss is recorded as a charge to the statement of income. The later recovery of amounts previously recorded as impaired, are recorded as a credit to income in the period in which it occurs.
k) Inventories
Inventories are recorded at the lower of their cost and net realization value, less an estimate for obsolescence. The net realization value is the estimated sale price in the normal course of business, less applicable variable sales expenses. The cost includes the purchase price plus necessary additional costs until the disposal of the products for sale, and is determined using the weighted average method. The cost of inventories subject to preparation processes includes the cost of raw materials, direct workforce and a general assignment of indirect manufacturing costs (on the basis of the normal operating capacity).
The estimate for obsolescence of inventories is made for those items whose realization ceases to be probable and is determined on the basis of an individual evaluation, considering the aging of the items stored and other pertinent information, all according to the judgment and experience of the management. The obsolescence determined is recorded directly in the comprehensive statement of income, with no provisions being made.
l) Trade receivables
Trade debtors, as indicated in the accounting policy letter j b), are shown at their nominal value in view of their short term for payment, less the estimate of doubtful debts. The estimate of doubtful debts of trade debtors considers whether there is objective evidence that the Group may not collect all the amounts due according to the original terms of the accounts receivable. The amount of the estimate is recorded in the statement of comprehensive income.
m) Statement of cash flows
· Cash and cash equivalents
The parent company and its subsidiaries have considered as cash and cash equivalents their available cash, time deposits and other short-term and highly-liquid investments with maturities of three months or less.
· Classification of interest and dividends paid
Cash flow used in the payment of interest and dividends is shown in Net cash flow from financing activities.
n) Trade payables
Trade creditors are initially recorded at their fair value and are later valued at their amortized cost using the effective interest-rate method.
o) Interest-Bearing Loans and Debt Issue Obligations
Loans and debt issues are initially recorded at fair value, net of the costs incurred in the transaction. The obligations with third parties are then valued at their amortized cost. Any difference between the proceeds (net of the costs necessary for obtaining them) and the reimbursement value is recorded in the statement of results over the life of the debt according to the effective interest-rate method.
p) Provisions
Provisions are recorded when the Company has a present, legal or assumed obligation as a result of past events, and there is a reasonable certainty that funds will be needed to pay the obligation.
The provisions are measured at the present value of the disbursements expected to be required to pay the obligation, using an interest rate that reflects current market conditions on the value of the money and specific risks of the obligation. The increase in the provision over the passage of time is recorded to interest expenses.
q) Deposits in guarantee
Returnable crates and bottles are recorded in property, plant and equipment. For those that have been delivered to the sales channels for the marketing of its products, a financial liability is recorded to reflect the obligation to reimburse the deposits in guarantee made by customers. This financial liability is valued at amortized cost and is extinguished when the obligation is settled.
r) Income and deferred taxes
The parent company and its subsidiaries have recorded their tax rights and obligations based on current legislation.
The charge for current tax is recorded in the statement of income and relates to income tax payable calculated on the taxable income for the year through the application of the tax rates current at the date of the statement of financial position, any adjustment to taxes payable of previous years and the effect of variations in deferred tax assets and liabilities.
The effects of deferred taxes are recorded for timing differences arising between the assets and liabilities for taxation purposes and their respective amounts shown in the financial statements. Deferred tax assets and liabilities are determined using the tax rates that have been promulgated at the date of the statement of financial position and which are expected to be applicable when the income tax asset is realized or the income tax liability is paid.
However, deferred tax originating from timing differences arising from investments in subsidiaries and associates is not provisioned when the opportunity of the reversal of the timing difference is controlled by the Group and it is probable that the timing difference will not be reversed in the foreseeable future.
s) Employee Benefits
· Profit-sharing and bonuses
The Company has no contractual or obligatory incentive plans. However, there are incentives for the senior executives which are defined according to expected returns and individual performance, which form part of remuneration. These benefits are provisioned at the close of the period.
t) Dividend distribution
The distribution of dividends to shareholders of the Company is recorded as a liability in the consolidated financial statements.
This liability is accrued when the dividends are approved by the shareholders meeting or are established by law (obligatory minimum).
u) Operative segments
IFRS 8 requires entities to adopt “the management view” for disclosing information on the results of their operative segments. This is generally the information that management uses internally to evaluate the performance of segments and to decide on the assignment of resources. The following reportable operative segments have therefore been determined:
· Operation in Chile
· Operation in Argentina
· Operation in Paraguay
v) Revenue recognition
Revenues consist of the fair value of the sale of goods and services, net of taxes and discounts.
Prior to revenue recognition, the Company considers the following criteria:
· Sale of products
Revenues are recognized when all the significant risks and benefits of title to the goods have been passed to the buyer.
· Interest
Revenue deriving from interest is recorded using the effective interest-rate method.
w) Estimates and critical accounting criteria
The following shows the principal future assumptions and other relevant sources of uncertainty in the estimates at the date of closing, which might have a significant effect on the financial statements in the future.
i) Revision of book values of goodwill and provision for impairments
The Group annually tests whether goodwill has suffered any loss for impairment of value in accordance with the guidelines stated in IAS 36. The recoverable amounts of the cash-generating units have been determined by calculating their value in use. These calculations require the use of estimates for the preparation of the cash flows that include the projection of the level of the Group’s future operations, projection of economic factors that affect revenues and costs, and the determination of the discount rate to be applied to this flow.
ii) Packaging guarantees
As disclosed in Note 2 q), the Company has an obligation to return funds received from customers with respect to packaging (crates and bottles) guarantees. This obligation is written down when it has been declared extinguished. The Company therefore considers that this obligation has been extinguished when a) customers return the packaging requesting the return of the deposit, or b) the packaging ceases to exist or is damaged. The valuation of this liability assumes that, in the absence of the occurrence described in a) above, the obligation will remain to the extent that it cannot be shown, through physical counts and other studies, that the packaging has ceased to exist.
x) New IFRS and Interpretations of the IFRS (CFRS) Interpretations Committee
New standards, amendments and interpretations of obligatory application with effect from the financial statements for 2012
|
|
|
| Date of obligatory application |
|
| New standards, interpretations & amendments |
| (financial statements starting in) |
NIIF 1 |
| First-time adoption of IFRS |
| July 1, 2011 |
NIIF 7 |
| Financial instruments |
| July 1, 2011 |
These newly-issued standards, amendments and interpretations are not currently important for the Group.
New standards, amendments and interpretations issued but not in effect for the financial year starting January 1, 2012, and not adopted in advance.
NIC 12 |
| Income tax |
| January 1, 2012 |
NIC 1 |
| Presentation of financial statements |
| July 1, 2012 |
NIC 19 |
| Employee benefits |
| January 1, 2013 |
NIIF 9 |
| Financial instruments |
| January 1, 2013 |
NIIF 10 |
| Consolidated financial statements |
| January 1, 2013 |
NIIF 11 |
| Joint ventures |
| January 1, 2013 |
NIIF 12 |
| Disclosure of participations in other entities |
| January 1, 2013 |
NIC 27 |
| Separate financial statements |
| January 1, 2013 |
NIC 28 |
| Investments in associates & joint ventures |
| January 1, 2013 |
IFRS 13 |
| Measurement of fair value |
| January 1, 2013 |
CINIIF 20 |
| Stripping Cost |
| January 1, 2013 |
The Company’s management believes that the adoption of the above-described standards, amendments and interpretations will have no significant impact on the consolidated financial statements of Embotelladoras Coca-Cola Polar S.A. and subsidiaries.
NOTE 3 - FINANCIAL INFORMATION BY OPERATIVE SEGMENT
As indicated in Note 2 u), management has determined the operative segments based on the reports used for taking strategic decisions. Management mainly considers the business from a geographic perspective, the reportable operative segments therefore being:
· Chilean operation
· Argentine operation
· Paraguayan operation
All the reported operative segments obtain their revenues from the production and commercialization of Coca-Cola products, as mentioned in Note 1.
There are no customers that represent more than 10% of the Company’s revenues.
The following shows information on the different segments and their reconciliation with the financial statements of Embotelladoras Coca-Cola Polar S.A. and its subsidiaries:
|
| Chilean |
| Argentine |
| Paraguayan |
|
|
| Consolidated |
|
|
| operation |
| operation |
| operation |
| Eliminations |
| total |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
For the period ended March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
Ordinary revenue from extrernal customers, total |
| 28.210.771 |
| 29.977.542 |
| 28.156.865 |
| — |
| 86.345.178 |
|
Ordinary revenue between segments, total |
| 397.573 |
| — |
| — |
| (397.573 | ) | — |
|
Interest income, total segments |
| 140.969 |
| — |
| 252.374 |
| (137.778 | ) | 255.565 |
|
Interest expense, total segments |
| (1.397.129 | ) | (76.166 | ) | (140.156 | ) | 137.778 |
| (1.475.673 | ) |
Net interest income, total segments |
| (1.256.160 | ) | (76.166 | ) | 112.218 |
| — |
| (1.220.108 | ) |
Depreciations & amortization, total segments |
| (1.377.331 | ) | (950.622 | ) | (1.486.031 | ) | — |
| (3.813.984 | ) |
Sum of significant revenue items, total |
| 13.722 |
| 2.527 |
| 31.520 |
| — |
| 47.769 |
|
Sum of significant expense items, total |
| (24.360.194 | ) | (28.286.777 | ) | (22.994.258 | ) | 397.573 |
| (75.243.656 | ) |
Earnings (loss) of the segment which is being reported, total |
| 1.628.381 |
| 666.504 |
| 3.820.314 |
| — |
| 6.115.199 |
|
Participation of the entity in the results of associates recorded under the equity method, total |
| 122.103 |
| — |
| — |
| — |
| 122.103 |
|
Charge (credit) for income tax, total |
| (573.986 | ) | 43.122 |
| (206.619 | ) | — |
| (737.483 | ) |
Assets of the segments, total |
| 97.973.784 |
| 74.975.231 |
| 102.199.562 |
| (5.633.690 | ) | 269.514.887 |
|
Amount in associates & joint ventures recorded under the equity method, total |
| 6.780.283 |
| — |
| — |
| — |
| 6.780.283 |
|
Disbursements of non-monetary assets of the segment, total segments |
| 3.684.502 |
| 1.406.759 |
| 3.953.331 |
| — |
| 9.044.591 |
|
Liabilities of the segments, total |
| 135.484.519 |
| 29.661.045 |
| 13.728.755 |
| (5.633.688 | ) | 173.240.631 |
|
|
| Chilean |
| Argentine |
| Paraguayan |
|
|
| Consolidated |
|
|
| operation |
| operation |
| operation |
| Eliminations |
| total |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
For the period ended March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
Ordinary revenue from extrernal customers, total |
| 23.854.196 |
| 22.364.626 |
| 22.784.672 |
| — |
| 69.003.494 |
|
Ordinary revenue between segments, total |
| 489.892 |
| — |
| — |
| (489.892 | ) | — |
|
Interest income, total segments |
| 185.324 |
| — |
| 124.760 |
| — |
| 310.084 |
|
Interest expense, total segments |
| (915.286 | ) | (256.550 | ) | (38.659 | ) | — |
| (1.210.495 | ) |
Net interest income, total segments |
| (729.962 | ) | (256.550 | ) | 86.101 |
|
|
| (900.411 | ) |
Depreciations & amortization, total segments |
| (1.177.105 | ) | (777.181 | ) | (1.064.475 | ) | — |
| (3.018.761 | ) |
Sum of significant revenue items, total |
| 5.481 |
| 6.428 |
| 29.392 |
| — |
| 41.301 |
|
Sum of significant expense items, total |
| (19.688.071 | ) | (21.544.872 | ) | (16.714.542 | ) | 489.892 |
| (57.457.593 | ) |
Earnings (loss) of the segment which is being reported, total |
| 2.754.431 |
| (207.549 | ) | 5.121.148 |
| — |
| 7.668.030 |
|
Participation of the entity in the results of associates recorded under the equity method, total |
| 111.143 |
| — |
| — |
| — |
| 111.143 |
|
Charge (credit) for income tax, total |
| (593.745 | ) | 562.736 |
| (402.600 | ) | — |
| (433.608 | ) |
Assets of the segments, total |
| 94.082.831 |
| 63.876.302 |
| 97.174.716 |
| (2.990.705 | ) | 252.143.144 |
|
Amount in associates & joint ventures recorded under the equity method, total |
| 6.223.723 |
| — |
| — |
| — |
| 6.223.723 |
|
Disbursements of non-monetary assets of the segment, total segments |
| 2.294.694 |
| 3.249.707 |
| 3.072.408 |
| — |
| 8.616.809 |
|
Liabilities of the segments, total |
| 86.458.713 |
| 21.439.952 |
| 16.992.122 |
| (2.990.708 | ) | 121.900.079 |
|
The composition of the balance of inventories at each period end is as follows:
|
| Accumulated to March 31, |
| ||
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Raw materials |
| 10.265.765 |
| 13.582.785 |
|
Merchandise |
| 2.116.295 |
| 1.796.829 |
|
Supplies for production |
| 687.178 |
| 555.240 |
|
Products being processed |
| 772.275 |
| 776.623 |
|
Finished goods |
| 6.393.524 |
| 4.736.564 |
|
Others |
| 1.374.260 |
| 1.651.329 |
|
Balance |
| 21.609.297 |
| 23.099.370 |
|
The Company determines the cost of inventories using the weighted average method.
The cost of inventories recorded as Cost of sales at the end of each period is as follows:
|
| Accumulated to March 31, |
| ||
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Cost of inventories |
| 45.547.489 |
| 34.692.351 |
|
The charge for obsolescence of inventories, recorded in the statement of comprehensive income at the end of each period, is as follows:
|
| Accumulated to March 31, |
| ||
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Expense for obsolescence |
| — |
| 16.879 |
|
NOTE 5 - CASH AND CASH EQUIVALENTS
The detail of cash and cash equivalents at the end of each period is as follows:
|
| March 31, |
| December 31, |
|
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Cash |
| 44.463 |
| 46.468 |
|
Bank balances |
| 3.080.270 |
| 6.625.418 |
|
Deposits |
| 19.509.077 |
| 14.983.835 |
|
Mutual funds |
| 500.000 |
| — |
|
Cash & Cash Equivalents |
| 23.133.810 |
| 21.655.721 |
|
|
| March 31, |
| December 31, |
|
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
US Dollar |
| 769.314 |
| 1.478.095 |
|
Argentine Peso |
| 1.442.778 |
| 3.187.243 |
|
Guaraní |
| 19.281.904 |
| 16.278.044 |
|
Chilean Peso |
| 1.639.814 |
| 712.339 |
|
Cash & Cash Equivalents |
| 23.133.810 |
| 21.655.721 |
|
There are no differences between Cash and cash equivalents in the statement of financial position and Cash and cash equivalents in the statement of cash flows.
· Deposits
Time deposits, with original maturities of less than three months, are recorded at their amortized cost. The detail for the two periods is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
|
|
|
| Annual |
|
|
| to March 31, |
Lodgement |
| Entity |
| Country |
| Currency |
| Principal |
| rate |
| Maturity |
| 2012 |
|
|
|
|
|
|
|
| ThCh$ |
| % |
|
|
| ThCh$ |
30-03-2012 |
| Banco Regional SAECA |
| Paraguay |
| Guaraníes |
| 1.338.974 |
| 3,5 |
| 02-04-2012 |
| 1.338.974 |
31-01-2012 |
| Itau S.A. |
| Paraguay |
| Guaraníes |
| 3.575.000 |
| 7,5 |
| 02-05-2012 |
| 3.619.075 |
31-01-2012 |
| Banco Regional SAECA |
| Paraguay |
| Guaraníes |
| 2.475.000 |
| 7,7 |
| 02-05-2012 |
| 2.506.124 |
29-02-2012 |
| Banco Regional SAECA |
| Paraguay |
| Guaraníes |
| 1.034.000 |
| 7,4 |
| 02-05-2012 |
| 1.040.455 |
31-01-2012 |
| BBVA Paraguay SA |
| Paraguay |
| Guaraníes |
| 550.000 |
| 5,5 |
| 02-04-2012 |
| 554.973 |
29-02-2012 |
| BBVA Paraguay SA |
| Paraguay |
| Guaraníes |
| 770.000 |
| 6,0 |
| 14-04-2012 |
| 773.924 |
23-03-2012 |
| Banco Regional SAECA |
| Paraguay |
| Guaraníes |
| 1.650.000 |
| 6,5 |
| 07-05-2012 |
| 1.652.351 |
29-02-2012 |
| Itau S.A. |
| Paraguay |
| Guaraníes |
| 1.034.000 |
| 5,9 |
| 02-05-2012 |
| 1.039.270 |
28-03-2012 |
| BBVA Paraguay SA |
| Paraguay |
| Guaraníes |
| 2.420.000 |
| 6,0 |
| 02-05-2012 |
| 2.421.555 |
26-03-2012 |
| HSBC Bank Paraguay |
| Paraguay |
| Guaraníes |
| 550.000 |
| 5,3 |
| 30-04-2012 |
| 550.399 |
28-03-2012 |
| Itau S.A. |
| Paraguay |
| Guaraníes |
| 550.000 |
| 5,5 |
| 02-05-2012 |
| 550.249 |
28-02-2012 |
| HSBC Bank Paraguay |
| Paraguay |
| Guaraníes |
| 495.000 |
| 5,5 |
| 13-04-2012 |
| 497.387 |
31-01-2012 |
| HSBC Bank Paraguay |
| Paraguay |
| Dollars |
| 473.110 |
| 3,1 |
| 03-04-2012 |
| 474.400 |
31-01-2012 |
| HSBC Bank Paraguay |
| Paraguay |
| Guaraníes |
| 1.100.000 |
| 6,0 |
| 03-04-2012 |
| 1.110.849 |
29-02-2012 |
| Banco Continental |
| Paraguay |
| Guaraníes |
| 550.000 |
| 7,3 |
| 02-05-2012 |
| 553.387 |
26-03-2012 |
| Banco Continental |
| Paraguay |
| Guaraníes |
| 825.000 |
| 6,3 |
| 02-05-2012 |
| 825.705 |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
| 19.509.077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
|
|
|
| Annual |
|
|
| to December |
Lodgement |
| Entity |
| Country |
| Currency |
| Principal |
| rate |
| Maturity |
| 2012 |
|
|
|
|
|
|
|
| ThCh$ |
| % |
|
|
| ThCh$ |
30-12-2011 |
| Banco Regional SAECA |
| Paraguay |
| Guaraníes |
| 910.074 |
| 2,0 |
| 02-01-2012 |
| 910.074 |
31-10-2011 |
| Itau S.A. |
| Paraguay |
| Guaraníes |
| 600.000 |
| 6,7 |
| 02-01-2012 |
| 606.608 |
27-10-2011 |
| Banco Regional SAECA |
| Paraguay |
| Guaraníes |
| 1.200.000 |
| 7,5 |
| 25-01-2012 |
| 1.216.027 |
27-10-2011 |
| Banco Regional SAECA |
| Paraguay |
| Guaraníes |
| 1.200.000 |
| 7,5 |
| 25-01-2012 |
| 1.216.027 |
27-10-2011 |
| BBVA Paraguay SA |
| Paraguay |
| Guaraníes |
| 1.680.000 |
| 8,5 |
| 25-01-2012 |
| 1.705.430 |
27-10-2011 |
| BBVA Paraguay SA |
| Paraguay |
| Guaraníes |
| 1.920.000 |
| 8,5 |
| 25-01-2012 |
| 1.949.063 |
30-11-2011 |
| Banco Regional SAECA |
| Paraguay |
| Guaraníes |
| 960.000 |
| 7,5 |
| 29-02-2012 |
| 966.156 |
30-11-2011 |
| Itau S.A. |
| Paraguay |
| Guaraníes |
| 600.000 |
| 7,0 |
| 28-02-2012 |
| 603.567 |
30-11-2011 |
| BBVA Paraguay SA |
| Paraguay |
| Guaraníes |
| 600.000 |
| 7,5 |
| 28-02-2012 |
| 603.822 |
30-11-2011 |
| HSBC Bank Paraguay |
| Paraguay |
| Guaraníes |
| 540.000 |
| 6,6 |
| 28-02-2012 |
| 543.027 |
29-12-2011 |
| Itau S.A. |
| Paraguay |
| Guaraníes |
| 1.980.000 |
| 7,2 |
| 28-03-2012 |
| 1.980.787 |
29-12-2011 |
| Itau S.A. |
| Paraguay |
| Dollars |
| 882.090 |
| 2,0 |
| 30-01-2012 |
| 882.187 |
28-12-2011 |
| BBVA Paraguay SA |
| Paraguay |
| Guaraníes |
| 1.200.000 |
| 8,0 |
| 27-03-2012 |
| 1.200.789 |
28-12-2011 |
| HSBC Bank Paraguay |
| Paraguay |
| Guaraníes |
| 600.000 |
| 5,5 |
| 27-01-2012 |
| 600.271 |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
| 14.983.835 |
There are no material differences between the book value of time deposits and their fair value.
· Mutual Funds
Mutual fund quotas are valued at the quota price at the end of each period. Variations in the value of the quotas during the respective periods are recorded as a charge or credit to income.
These mutual funds correspond to short-term low-risk investments. The portfolio consists of national debt instruments issued by Banco Central de Chile and the country’s principal financial institutions.
The following is the detail at the end of the 2012 period:
|
|
|
|
|
| Balance |
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
| to March 31, |
|
Institution |
| Country |
| Currency |
| 2012 |
|
|
|
|
|
|
| ThCh$ |
|
Fondos Mutuos Banchile |
| Chile |
| Chilean pesos |
| 500.000 |
|
Total |
|
|
|
|
| 500.000 |
|
NOTE 6 - INCOME AND DEFERRED TAXES
a) General Information
The parent company and subsidiaries have recorded their tax rights and obligations on the basis of the country’s current legislation.
A provision for consolidated income tax as of March 31, 2012 and December 31, 2011 has been made, calculated on the basis of taxable income of ThCh$ 9,274,636 and ThCh$ 23,742,136 respectively.
As of March 31, 2012 the Chilean companies show the following tax credits pending distribution:
|
| Taxable earnings |
|
|
| ||||
|
| With credit |
| With credit |
| Without |
|
|
|
Company |
| 17,0% |
| 20,0% |
| credit |
| Total |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Embotelladoras Coca-Cola Polar S.A. |
| 1.216.174 |
| 3.679.934 |
| 932.251 |
| 5.828.359 |
|
Transportes Polar S.A. |
| — |
| 381.876 |
| 117.914 |
| 499.790 |
|
Inversiones Los Andes Ltda. |
| 145.524 |
| — |
| 66.821 |
| 212.345 |
|
Total |
| 1.361.698 |
| 4.061.810 |
| 1.116.986 |
| 6.540.494 |
|
b) Deferred taxes
The balances of deferred tax assets and liabilities at the end of each period are as follows:
|
| March 31, |
| December 31, |
| ||||
|
| 2012 |
| 2011 |
| ||||
Concept |
| Assets |
| Liabilities |
| Assets |
| Liabilities |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Doubtful accounts provision |
| 126.031 |
| — |
| 166.943 |
| — |
|
Vacations provision |
| 65.262 |
| — |
| 73.187 |
| — |
|
Lawsuits provision |
| 320.742 |
| — |
| 359.312 |
| — |
|
Inventories |
| 295 |
| 86.259 |
| 321 |
| 99.257 |
|
Property, plant & equipment |
| — |
| 7.332.904 |
| — |
| 7.440.433 |
|
Leasing obligations |
| 539.361 |
| — |
| 518.523 |
| — |
|
Tax loss |
| 4.315.943 |
| — |
| 4.227.229 |
| — |
|
Advance payments |
| 14.153 |
| 934 |
| — |
| 79.903 |
|
Foreign subsidiaries dividends |
| — |
| 1.864.778 |
| — |
| 1.986.281 |
|
Credit on bond placement |
| 332.569 |
| — |
| 332.569 |
| — |
|
Bond placement issue costs |
| — |
| 78.678 |
| — |
| 78.678 |
|
Others |
| 392.329 |
| 261.002 |
| 375.324 |
| 441.405 |
|
Total |
| 6.106.685 |
| 9.624.555 |
| 6.053.408 |
| 10.125.957 |
|
The movement in deferred taxes in the periods to March 31, 2012 and December 31, 2011 was as follows:
|
| March 31, |
| December 31, |
| ||||
|
| 2012 |
| 12.2011 |
| ||||
Concept |
| Assets |
| Liabilities |
| Assets |
| Liabilities |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Initial balance |
| 6.053.408 |
| 10.125.957 |
| 3.829.416 |
| 8.839.439 |
|
Increase (decrease) for deferred taxes |
| 453.818 |
| (154.034 | ) | 2.041.704 |
| 1.023.750 |
|
Increase (decrease) for foreign currency translation |
| (400.541 | ) | (347.368 | ) | 182.288 |
| 262.768 |
|
Movement |
| 53.277 |
| (501.402 | ) | 2.223.992 |
| 1.286.518 |
|
Closing balance |
| 6.106.685 |
| 9.624.555 |
| 6.053.408 |
| 10.125.957 |
|
c) Tax charge
The following shows the composition of the tax charge at the end of each period:
|
| Accumulated to March 31, |
| ||
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Current tax charge |
| (1.090.302 | ) | (926.844 | ) |
Adjustments to current tax previous period |
| (97.805 | ) | — |
|
Other current tax charge |
| 1.916 |
| 49.170 |
|
Credit (charge) for current taxes |
| (1.186.191 | ) | (877.674 | ) |
Credit (charge) for variation in deferred taxes |
| 448.708 |
| 446.148 |
|
Other credits (charges) for deferred taxes |
| — |
| (2.082 | ) |
Credit (charge) for deferred taxes |
| 448.708 |
| 444.066 |
|
Credit (charge) for income tax |
| (737.483 | ) | (433.608 | ) |
The tax charge by the Chilean and foreign parts at the end of each period is as follows:
|
| Accumulated to March |
| ||
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Foreign |
| (559.528 | ) | (445.739 | ) |
Chilean |
| (626.663 | ) | (431.935 | ) |
Credit (charge) for current taxes |
| (1.186.191 | ) | (877.674 | ) |
Foreign |
| 396.031 |
| 605.875 |
|
Chilean |
| 52.677 |
| (161.809 | ) |
Credit (charge) for deferred taxes |
| 448.708 |
| 444.066 |
|
Credit (charge) for income tax |
| (737.483 | ) | (433.608 | ) |
d) Reconciliation of tax charge using the statutory rate and the tax charge using the effective rate
|
| Accumulated to March |
| ||
Concept |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Earnings before taxes |
| 6.852.682 |
| 8.101.638 |
|
Tax charge using statutory rate (18.5%) |
| 1.370.536 |
| — |
|
Tax charge using statutory rate (20%) |
| — |
| 1.620.328 |
|
|
|
|
|
|
|
Permanent differences: |
|
|
|
|
|
Non-taxable ordinary revenue |
| (740.089 | ) | (1.267.003 | ) |
Non-deductible expenses for tax purposes |
| 98.405 |
| 121.203 |
|
Others |
| 8.631 |
| (40.920 | ) |
Adjustments to tax charge |
| (633.053 | ) | (1.186.720 | ) |
Tax charge using the effective rate |
| 737.483 |
| 433.608 |
|
|
|
|
|
|
|
Effective rate |
| 10,8 | % | 5,4 | % |
The income tax rate applicable in each of the countries where the Company operates is 18.5% for Chile, 10% for Paraguay and 35% for Argentina.
NOTE 7 - PROPERTY, PLANT AND EQUIPMENT
a) Balances
The following shows the detail of property, plant and equipment as of March 31, 2012 and December 31, 2011:
|
| Property, |
| Accumulated |
| Property, plant & |
| ||||||
|
| plant & equipment, gross |
| depreciation & impairment |
| equipment, net |
| ||||||
Concept |
| 31.03.2012 |
| 31.12.2011 |
| 31.03.2012 |
| 31.12.2011 |
| 31.03.2012 |
| 31.12.2011 |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Construction in progress |
| 12.687.613 |
| 13.823.900 |
| — |
| — |
| 12.687.613 |
| 13.823.900 |
|
Land |
| 11.031.874 |
| 11.512.013 |
| — |
| — |
| 11.031.874 |
| 11.512.013 |
|
Buildings |
| 32.182.674 |
| 31.930.930 |
| 2.470.955 |
| 2.369.664 |
| 29.711.719 |
| 29.561.266 |
|
Plant & equipment |
| 67.695.255 |
| 69.077.285 |
| 12.608.615 |
| 12.301.838 |
| 55.086.640 |
| 56.775.447 |
|
Computer equipment |
| 5.468.667 |
| 5.450.946 |
| 3.240.127 |
| 3.208.220 |
| 2.228.540 |
| 2.242.726 |
|
Motor vehicles |
| 1.173.481 |
| 1.218.311 |
| 343.369 |
| 322.875 |
| 830.112 |
| 895.436 |
|
Other property, plant & equipment |
| 74.265.687 |
| 75.784.536 |
| 23.917.377 |
| 22.967.722 |
| 50.348.310 |
| 52.816.814 |
|
Total |
| 204.505.251 |
| 208.797.921 |
| 42.580.443 |
| 41.170.319 |
| 161.924.808 |
| 167.627.602 |
|
b) Additional information
The amount of fully-depreciated property, plant and equipment still in use as of March 31, 2012 and December 31, 2011 is ThCh$ 4,488,913 and ThCh$ 3,706,653 respectively.
Accumulated disbursements in property, plant and equipment under construction as of the end of each period amount to ThCh$ 12,687,613 in 2012 (ThCh$ 13,823,900 in 2011).
c) Movement
The movement in property, plant and equipment during both periods was as follows:
|
|
|
|
|
|
|
| Plant & |
| Computer |
|
|
| Other property, |
| Property, plant, |
|
|
| Construction |
|
|
| Buildings |
| equipment, |
| equipment, |
| Motor |
| plant & equip., |
| & equipment |
|
|
| in progress |
| Land |
| net |
| net |
| net |
| vehicles, net |
| net |
| net |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
For the period ended 31.03.2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial balance |
| 13.823.900 |
| 11.512.013 |
| 29.561.266 |
| 56.775.447 |
| 2.242.726 |
| 895.436 |
| 52.816.814 |
| 167.627.602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions |
| 2.898.926 |
| — |
| 324.381 |
| 1.409.004 |
| 229.784 |
| 9.153 |
| 4.173.343 |
| 9.044.591 |
|
Capitalizations |
| (3.472.621 | ) | — |
| 1.690.002 |
| 1.984.917 |
| 31.166 |
| — |
| (233.464 | ) | — |
|
Sales / Write-offs |
| — |
| — |
| — |
| (387.087 | ) | (882 | ) | — |
| (1.083.169 | ) | (1.471.138 | ) |
Depreciation for period |
| — |
| — |
| (219.956 | ) | (926.406 | ) | (195.780 | ) | (35.117 | ) | (2.347.371 | ) | (3.724.630 | ) |
Foreign currency traslation |
| (562.592 | ) | (480.139 | ) | (1.643.974 | ) | (3.769.235 | ) | (78.474 | ) | (39.360 | ) | (2.977.843 | ) | (9.551.617 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total movement |
| (1.136.287 | ) | (480.139 | ) | 150.453 |
| (1.688.807 | ) | (14.186 | ) | (65.324 | ) | (2.468.504 | ) | (5.702.794 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing balance |
| 12.687.613 |
| 11.031.874 |
| 29.711.719 |
| 55.086.640 |
| 2.228.540 |
| 830.112 |
| 50.348.310 |
| 161.924.808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Plant & |
| Computer |
|
|
| Other property, |
| Property, plant, |
|
|
| Construction |
|
|
| Buildings |
| equipment, |
| equipment, |
| Motor |
| plant & equip., |
| & equipment |
|
|
| in progress |
| Land |
| net |
| net |
| net |
| vehicles, net |
| net |
| net |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
For the period ended 31.12.2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial balance |
| 11.671.145 |
| 10.780.083 |
| 21.096.158 |
| 42.505.611 |
| 1.174.910 |
| 869.301 |
| 35.136.361 |
| 123.233.569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions |
| 16.384.954 |
| 222.613 |
| 638.019 |
| 8.384.994 |
| 956.438 |
| 310.966 |
| 24.948.945 |
| 51.846.929 |
|
Capitalizations |
| 14.993.346 |
| — |
| 7.694.902 |
| 7.315.004 |
| 647.216 |
| — |
| (663.776 | ) | — |
|
Sales / Write-offs |
| (615 | ) | (230.861 | ) | (355.299 | ) | (2.561.537 | ) | (53 | ) | (210.345 | ) | (887.794 | ) | (4.246.504 | ) |
Depreciation for period |
| — |
| — |
| (678.085 | ) | (3.443.533 | ) | (611.073 | ) | (107.848 | ) | (8.559.680 | ) | (13.400.219 | ) |
Foreign currency traslation |
| 761.762 |
| 740.178 |
| 1.165.571 |
| 4.574.908 |
| 75.288 |
| 33.362 |
| 2.842.758 |
| 10.193.827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total movement |
| 2.152.755 |
| 731.930 |
| 8.465.108 |
| 14.269.836 |
| 1.067.816 |
| 26.135 |
| 17.680.453 |
| 44.394.033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing balance |
| 13.823.900 |
| 11.512.013 |
| 29.561.266 |
| 56.775.447 |
| 2.242.726 |
| 895.436 |
| 52.816.814 |
| 167.627.602 |
|
NOTE 8 - REVENUES AND EXPENSES
a) Operating Revenues
· Revenues from Ordinary Activities
Revenues from ordinary activities relate to sales of products.
· Other revenue
The following is a detail of other revenue during each period:
|
| Accumulated |
| ||
|
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Rentals |
| 5.712 |
| 7.630 |
|
Recycled sale |
| 31.520 |
| 29.392 |
|
Other |
| 10.537 |
| 4.279 |
|
Total |
| 47.769 |
| 41.301 |
|
b) Operating Costs and Expenses
The detail of operating costs and expenses during each period was as follows:
|
| ACCUMULATED TO MARCH 31, |
| ||||||||||||||||||
|
| Cost of sales |
| Distribution costs |
| Administrative expenses |
| Other expenses, |
| Total costs & expenses |
| ||||||||||
Detail |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Raw materials |
| 45.431.002 |
| 34.692.351 |
| 114.856 |
| — |
| 122 |
| — |
| 1.509 |
| — |
| 45.547.489 |
| 34.692.351 |
|
Depreciation for period |
| 2.212.284 |
| 1.658.884 |
| 139.415 |
| 305.438 |
| 168.454 |
| 142.939 |
| 1.293.831 |
| 911.500 |
| 3.813.984 |
| 3.018.761 |
|
Maintenance & repairs |
| 866.650 |
| 887.565 |
| 140.868 |
| 70.095 |
| 25.931 |
| 39.884 |
| 182.428 |
| 93.437 |
| 1.215.877 |
| 1.090.981 |
|
Employee expenses |
| 4.322.505 |
| 4.073.568 |
| 2.577.881 |
| 1.652.168 |
| 1.894.452 |
| 1.914.612 |
| 3.242.907 |
| 2.645.730 |
| 12.037.745 |
| 10.286.078 |
|
Publicity & promotion |
| — |
| — |
| — |
| — |
| — |
| — |
| 2.975.814 |
| 1.674.357 |
| 2.975.814 |
| 1.674.357 |
|
Freight & other distribution expense |
| 9.041 |
| — |
| 9.299.251 |
| 6.611.416 |
| 5.514 |
| 4.202 |
| 233.929 |
| 108.607 |
| 9.547.735 |
| 6.724.225 |
|
Other costs & expenses |
| 28.149 |
| 203.393 |
| 668.066 |
| 285.141 |
| 1.376.263 |
| 1.511.076 |
| 883.029 |
| 789.161 |
| 2.955.507 |
| 2.788.771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
| 52.869.631 |
| 41.515.761 |
| 12.940.337 |
| 8.924.258 |
| 3.470.736 |
| 3.612.713 |
| 8.813.447 |
| 6.222.792 |
| 78.094.151 |
| 60.275.524 |
|
The increase in publicity and promotion expenses over the previous period relates basically to the introduction of an incremental plan of market assets in Paraguay and Argentina in 2011. This plan was implemented with own resources and contributions from Coca-Cola, plus a commitment by our company for 2012.
c) Financial Costs
The detail of financial costs charged to income in each period is as follows:
|
| Accumulated |
| ||
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Bank loans |
| 370.283 |
| 431.373 |
|
Bonds |
| 488.295 |
| 464.025 |
|
Bond indexation adjustments |
| 617.095 |
| 315.097 |
|
Total |
| 1.475.673 |
| 1.210.495 |
|
d) Other Losses
The following is a detail of other losses for each period:
|
| Accumulated |
| ||
Other losses |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Donations |
| 20.910 |
| 5.600 |
|
Write-off of fixed asset |
| 22.304 |
| 19.870 |
|
Merger fees |
| 162.108 |
| — |
|
Lawsuits provision |
| 36.674 |
| 31.405 |
|
Restructuring costs |
| — |
| 281.650 |
|
Tax on bank charges |
| 367.748 |
| 309.901 |
|
Others |
| 85.726 |
| 98.355 |
|
Total |
| 695.470 |
| 746.781 |
|
Restructuring costs relate to the closure of the Neuquén production plant of the subsidiary Coca-Cola Polar Argentina S.A., whose business was absorbed by the new plant built in Bahía Blanca, in accordance with the restructuring plans agreed by the board during 2010.
As of March 31, 2012 and December 31, 2011 the Company shows a provision for profit sharing and bonuses of ThCh$ 1,127,017 and ThCh$ 1,176,697 respectively.
The expense for these concepts is shown in the costs of sales and distribution, administrative expenses and other expenses by function in the statement of results.
· Employee Expenses
Employee expenses included in the consolidated statement of comprehensive results for each period were as follows:
|
| Accumulated to March 31, |
| ||
Detail |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Wages & salaries |
| 9.721.769 |
| 8.403.111 |
|
Short-term employee benefits |
| 1.452.879 |
| 1.301.872 |
|
Severance benefits |
| 383.536 |
| 162.252 |
|
Other personnel expenses |
| 479.561 |
| 418.843 |
|
Total |
| 12.037.745 |
| 10.286.078 |
|
The following are the balances and transactions with related entities as of the close of each period:
a) Receivables
|
|
|
|
|
| Country |
|
|
|
|
|
|
|
Tax ID No. |
| Company |
| Relationship |
| of origin |
| Currency |
| 31.03.2012 |
| 31.12.2011 |
|
|
|
|
|
|
|
|
|
|
| ThCh$ |
| ThCh$ |
|
96.714.870-9 |
| Coca-Cola de Chile S.A. |
| Related to shareholder |
| Chile |
| Ch$ |
| 2.147.753 |
| 2.539.352 |
|
Foreign |
| Coca-Cola de Argentina S.A. |
| Related to shareholder |
| Argentina |
| US$ / Arg $ |
| 1.284.099 |
| 2.149.758 |
|
77.755.610-k |
| Comercial Patagona Ltda. |
| Related to director |
| Chile |
| Ch$ |
| 556 |
| 589 |
|
96.919.980-7 |
| Cervecería Austral S.A. |
| Related to director |
| Chile |
| Ch$ |
| 23.099 |
| 20.671 |
|
96.705.990-0 |
| Envases Central S.A. |
| Associate |
| Chile |
| Ch$ |
| — |
| 4.461 |
|
Total |
|
|
|
|
|
|
|
|
| 3.455.507 |
| 4.714.831 |
|
Payables
|
|
|
|
|
| Country |
|
|
|
|
|
|
|
Tax ID No |
| Company |
| Relationship |
| of origin |
| Currency |
| 31.03.2012 |
| 31.12.2011 |
|
|
|
|
|
|
|
|
|
|
| ThCh$ |
| ThCh$ |
|
96.714.870-9 |
| Coca-Cola de Chile S.A. |
| Related to shareholder |
| Chile |
| Ch$ |
| 6.023.952 |
| 2.168.751 |
|
Foreign |
| Coca-Cola de Argentina S.A. |
| Related to shareholder |
| Argentina |
| US$ / Arg $ |
| 5.528.451 |
| 2.861.401 |
|
96.705.990-0 |
| Envases Central S.A. |
| Associate |
| Chile |
| Ch$ |
| 379.189 |
| 342.161 |
|
96.919.980-7 |
| Cervecería Austral S.A. |
| Related to director |
| Chile |
| US$ |
| 34.830 |
| 27.478 |
|
76.389.720-6 |
| Vital Aguas S.A. |
| Associate |
| Chile |
| Ch$ |
| 324.616 |
| 293.497 |
|
93.899.000-k |
| Vital S.A. |
| Associate |
| Chile |
| Ch$ |
| 671.083 |
| 716.666 |
|
76.105.924-6 |
| Inversiones Las Niñas Dos S.A. |
| Director in common |
| Chile |
| Ch$ |
| 388.555 |
| 268.043 |
|
79.891.340-9 |
| Inversiones Las Hualtatas S.A. |
| Director in common |
| Chile |
| Ch$ |
| 91.081 |
| 129.550 |
|
Total |
|
|
|
|
|
|
|
|
| 13.441.757 |
| 6.807.547 |
|
b) Transactions
|
|
|
|
|
| Country |
|
|
|
|
| Accumulated |
| ||
Tax ID. No. |
| Company |
| Relationship |
| of origin |
| Transaction |
| Currency |
| 2012 |
| 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
| ThCh$ |
| ThCh$ |
|
79.891.340-9 |
| Inversiones Las Hualtatas S.A. |
| Director in common |
| Chile |
| Services |
| Ch$ |
| 158.981 |
| — |
|
96.773.130-7 |
| Viña Caliterra S.A. |
| Director in common |
| Chile |
| Office rental |
| Ch$ |
| 5.712 |
| 5.481 |
|
96.714.870-9 |
| Coca-Cola de Chile S.A. |
| Related to shareholder |
| Chile |
| Reimb. Publicity expenses |
| Ch$ |
| 1.376.797 |
| 977.714 |
|
96.714.870-9 |
| Coca-Cola de Chile S.A. |
| Related to shareholder |
| Chile |
| Purchase raw materials |
| Ch$ |
| 5.485.285 |
| 4.614.469 |
|
96.919.980-7 |
| Cervecería Austral S.A. |
| Related to director |
| Chile |
| Sale of raw materials |
| Ch$ |
| 9.075 |
| 12.644 |
|
96.919.980-7 |
| Cervecería Austral S.A. |
| Related to director |
| Chile |
| Purchase of finished products |
| US$ |
| 16.671 |
| 36.449 |
|
96.919.980-7 |
| Cervecería Austral S.A. |
| Related to director |
| Chile |
| Purchase of finished products |
| Ch$ |
| 9.431 |
| 4.701 |
|
77.755.610-k |
| Comercial Patagona Ltda. |
| Related to director |
| Chile |
| Purchase of finished products |
| Ch$ |
| 57.192 |
| 62.774 |
|
Foreign |
| Coca-Cola de Argentina S.A. |
| Related to shareholder |
| Argentina |
| Reimb. Publicity expenses |
| Argentine $ |
| 1.461.094 |
| 725.269 |
|
Foreign |
| Coca-Cola de Argentina S.A. |
| Related to shareholder |
| Argentina |
| Reimb. Publicity expenses |
| US$ |
| 1.384.887 |
| 1.001.907 |
|
Foreign |
| Coca-Cola de Argentina S.A. |
| Related to shareholder |
| Argentina |
| Purchase raw materials |
| Argentine $ |
| 6.722.774 |
| 4.871.248 |
|
Foreign |
| Coca-Cola de Argentina S.A. |
| Related to shareholder |
| Argentina |
| Purchase raw materials |
| US$ |
| 6.859.012 |
| 4.886.079 |
|
96.705.990-0 |
| Envases Central S.A. |
| Associate |
| Chile |
| Purchase of finished products |
| Ch$ |
| 918.598 |
| 826.756 |
|
76.389.720-6 |
| Vital Aguas S.A. |
| Associate |
| Chile |
| Purchase of finished products |
| Ch$ |
| 1.031.691 |
| 749.537 |
|
93.899.000-k |
| Vital S.A. |
| Associate |
| Chile |
| Purchase of finished products |
| Ch$ |
| 2.147.584 |
| 1.472.309 |
|
Transactions with related parties are carried out on market conditions similar to those that would be applicable to unrelated third parties.
Remuneration and Benefits received by Key Personnel of the Company
The following remuneration and benefits were received by the Company’s key personnel during each of the periods:
|
| Acumulado a Marzo 31, |
| ||
Detalle |
| 2012 |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Wages and salaries |
| 925.279 |
| 874.134 |
|
Board of director´s fees |
| 86.631 |
| 93.358 |
|
Short-term employee benefits |
| 102 .873 |
| 74.362 |
|
Total |
| 1.114.783 |
| 1.041.854 |
|
The key personnel of the Company are directors, managers and assistant managers.
The immediate and ultimate controller of Embotelladoras Coca-Cola Polar S.A. is Inversiones Los Aromos Ltda., for which no financial statements are available to the public.
NOTE 11 - INVESTMENTS IN ASSOCIATES
a) Valuation and Composition
Investments in associates are shown valued as described in Note 2 e) at the end of each period.
The investments in Vital Aguas S.A., Vital S.A. and Envases Central S.A. are shown as Investment in associates as Embotelladoras Coca-Cola Polar S.A. has a significant influence in their management through having the right to appoint a director.
Acquisition of Participation in Vital S.A.
b) Interest acquisition in Vital S.A.
In January 2011, Embotelladoras Coca-Cola Polar S.A. acquired 1,382,198 shares in Vital S.A., equivalent to a 15% shareholding, for an amount of ThCh$ 2,393,760.
In March 2011, Vital S.A. made a capital increase through the issue of 10,000 shares for payment. Embotelladoras Coca-Cola Polar S.A. participated in this capital increase in line with its percentage holding, acquiring 1,500 shares for ThCh$ 855,000.
c) Summary of Information on Investments in Associates
The detail of investments in related companies is as follows:
|
|
| Investments in Associates |
| |||||||||||||||
Tax No. |
|
| 76.389.720-6 |
| 96.705.990-0 |
| 76.530.790-2 |
| 93.899.000-K |
| |||||||||
Name of associate |
|
| Vital Aguas S.A |
| Envases Central S.A. |
| Embotelladora del |
| Vital S.A. |
| |||||||||
Country of origin/Functional currency |
|
| Chile / Chilean peso |
| Chile / Chilean peso |
| Chile / Chilean |
| Chile / Chilean peso |
| |||||||||
Business of the associate |
|
| Production & distribution |
| Production & bottling of |
| Production & |
| Production & distribution of |
| |||||||||
Investment cost |
| ThCh$ |
| 2.182.376 |
| 460.673 |
| 593.741 |
| 3.248.760 |
| ||||||||
Book value |
| ThCh$ |
| 2.510.608 |
| 882.054 |
| — |
| 3.387.621 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
|
Participation |
| % |
| 17,10 |
| 17,10 |
| 9,36 |
| 9,36 |
| — |
| 25,00 |
| 15,00 |
| 15,00 |
|
Total current assets |
| ThCh$ |
| 3.049.943 |
| 2.811.974 |
| 7.638.938 |
| 6.204.683 |
| — |
| 773 |
| 11.992.003 |
| 8.488.540 |
|
Total non-current assets |
| ThCh$ |
| 5.318.142 |
| 5.328.081 |
| 10.052.090 |
| 9.838.962 |
| — |
| — |
| 21.391.788 |
| 16.236.187 |
|
Total assets |
| ThCh$ |
| 8.368.085 |
| 8.140.055 |
| 17.691.028 |
| 16.043.645 |
| — |
| 773 |
| 33.383.791 |
| 24.724.727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
| ThCh$ |
| 2.757.282 |
| 2.646.835 |
| 6.923.190 |
| 5.438.090 |
| — |
| — |
| 11.059.819 |
| 5.679.553 |
|
Total non-current liabilities |
| ThCh$ |
| 262.335 |
| 285.279 |
| 1.342.383 |
| 1.869.694 |
| — |
| — |
| 1.305.965 |
| 1.149.443 |
|
Total liabilities |
| ThCh$ |
| 3.019.617 |
| 2.932.114 |
| 8.265.573 |
| 7.307.784 |
| — |
| — |
| 12.365.784 |
| 6.828.996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ordinary revenue |
| ThCh$ |
| 3.880.336 |
| 3.904.296 |
| 9.968.014 |
| 9.286.692 |
| — |
| — |
| 11.999.921 |
| 9.725.524 |
|
Total ordinary expenses |
| ThCh$ |
| (3.756.736 | ) | (3.600.799 | ) | (9.532.388 | ) | (9.059.874 | ) | — |
| — |
| (11.598.312 | ) | (9.472.315 | ) |
Earnings (Loss) |
| ThCh$ |
| 123.600 |
| 303.497 |
| 435.626 |
| 226.818 |
| — |
| — |
| 401.609 |
| 253.209 |
|
d) Movement in investments in associates
The movement in investment in associates during each period was as follows:
Detail |
| 31/03/2012 |
| 31/12/2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Initial balance |
| 6.658.180 |
| 2.838.428 |
|
|
|
|
|
|
|
Additions, investments in associates |
| — |
| 3.248.760 |
|
Interest in ordinary earnings (loss) |
| 122.103 |
| 178.446 |
|
Other increases (decreases) |
| — |
| 392.546 |
|
Closing balance |
| 6.780.283 |
| 6.658.180 |
|
a) As of the end of each period, the detail and additional information relating to provisions is the folllowing:
|
| Current |
| ||
Detail |
| 31.03.2012 |
| 31.12.2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Provision for legal claims: |
|
|
|
|
|
Labor lawsuits |
| 556.333 |
| 561.238 |
|
Profit sharing & bonuses |
| 1.127.017 |
| 1.176.697 |
|
Other provisions |
| 151.393 |
| 176.008 |
|
Total |
| 1.834.743 |
| 1.913.943 |
|
|
| Estimated date of |
| Explanation of |
Concept of the Provision |
| outflow of funds |
| uncertainty |
Labor lawsuits |
| Second half 2012 |
| The amount provisioned is calculated according to the estimate based on the labor lawyer’s report. |
Profit sharing & bonuses |
| First half 2012 |
| The use of this provision is dependent on compliance with expected profitability & individual performance. |
b) The movement in provisions during each period was as follows:
|
| For the period ended 31.03.2012 |
| For the period ended 31.12.2011 |
| ||||||||||||
|
|
|
| Profit |
|
|
|
|
| Provision for |
| Profit |
|
|
|
|
|
|
| Provision for |
| sharing & |
| Other |
|
|
| Legal |
| sharing & |
| Other |
|
|
|
Detail |
| lawsuits |
| bonuses |
| provisions |
| Total |
| Claims |
| bonuses |
| provisions |
| Total |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Initial balance |
| 561.238 |
| 1.176.697 |
| 176.008 |
| 1.913.943 |
| 412.809 |
| 304.667 |
| 64.850 |
| 782.326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increases (decrease) in existing provisions |
| 40.706 |
| (26.444 | ) | (11.815 | ) | 2.447 |
| 89.174 |
| 847.124 |
| 112.739 |
| 1.049.037 |
|
Increase (decrease) in foreign exchange |
| (45.611 | ) | (23.236 | ) | (12.800 | ) | (81.647 | ) | 59.255 |
| 24.906 |
| (1.581 | ) | 82.580 |
|
Change in provisions |
| (4.905 | ) | (49.680 | ) | (24.615 | ) | (79.200 | ) | 148.429 |
| 872.030 |
| 111.158 |
| 1.131.617 |
|
Closing balance |
| 556.333 |
| 1.127.017 |
| 151.393 |
| 1.834.743 |
| 561.238 |
| 1.176.697 |
| 176.008 |
| 1.913.943 |
|
c) Contingencies
· Tax Contingency
In August 2004 and 2005, the Chilean tax authority (“Servicio de Impuestos Internos”) issued 2 tax demands against the Company for historic amounts of ThCh$ 365,959 and ThCh$ 800,506 respectively.
On January 11, 2012, the Company was notified of the tax demand amounting to ThCh$ 207,351, which is provisioned in these financial statements. This settlement concluded the process and there are no more proceedings pending in this respect.
NOTE 13 - INTANGIBLE ASSETS OTHER THAN GOODWILL
a) The detail of intangible assets at the close of each period is as follows:
|
| March 31, 2012 |
| December 31, 2011 |
| ||||||||
|
| Gross |
| Accumulated |
| Net |
| Gross |
| Accumulated |
| Net |
|
Detail |
| value |
| depreciation |
| value |
| value |
| depreciation |
| value |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rights (1) |
| 1.322.386 |
| — |
| 1.322.386 |
| 1.385.512 |
| — |
| 1.385.512 |
|
Software |
| 1.625.383 |
| (361.009 | ) | 1.264.374 |
| 1.579.649 |
| (304.201 | ) | 1.275.448 |
|
Total |
| 2.947.769 |
| (361.009 | ) | 2.586.760 |
| 2.965.161 |
| (304.201 | ) | 2.660.960 |
|
The movement in intangible assets during each period was as follows:
|
| March 31, 2012 |
| December 31,2011 |
| ||||||||
Detail |
| Rights(1) |
| Software |
| Total |
| Rights(1) |
| Software |
| Total |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Initial balance |
| 1.385.512 |
| 1.275.448 |
| 2.660.960 |
| 1.365.507 |
| 240.610 |
| 1.606.117 |
|
Additions |
| — |
| 66.502 |
| 66.502 |
| — |
| 1.109.668 |
| 1.109.668 |
|
Amortization |
| — |
| (71.490 | ) | (71.490 | ) | — |
| (75.268 | ) | (75.268 | ) |
Increase (decrease) in foreign exchange |
| (63.126 | ) | (6.086 | ) | (69.212 | ) | 20.005 |
| 438 |
| 20.443 |
|
Closing balance |
| 1.322.386 |
| 1.264.374 |
| 2.586.760 |
| 1.385.512 |
| 1.275.448 |
| 2.660.960 |
|
According to estimates and cash-flow projections of the cash-generating units to which the rights are attributed, it is concluded that the value is recoverable at the end of the period.
(1) As described in Note 2 g) a), the rights are recorded at their historic cost and are not amortized.
The balances of and movement in goodwill for each period are the following:
|
|
|
|
|
|
|
| Currency |
|
|
|
Cash generating |
| Jan 1,2012 |
|
|
|
|
| translation |
|
|
|
unit |
| (Initial balance) |
| Additions |
| Retirements |
| difference |
| Mar 31,2012 |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean operation |
| 1.901.275 |
| — |
| — |
| — |
| 1.901.275 |
|
Argentine operation |
| 6.154.200 |
| — |
| — |
| (427.031 | ) | 5.727.169 |
|
Paraguayan operation |
| 1.398.791 |
| — |
| — |
| (3.683 | ) | 1.395.108 |
|
Total |
| 9.454.266 |
| — |
| — |
| (430.714 | ) | 9.023.552 |
|
|
|
|
|
|
|
|
| Currency |
|
|
|
Cash generating |
| Jan 1, 2011 |
|
|
|
|
| translation |
|
|
|
unit |
| (Initial balance) |
| Additions |
| Retirements |
| difference |
| Dec 31, 2011 |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean operation |
| 1.901.275 |
| — |
| — |
| — |
| 1.901.275 |
|
Argentine operation |
| 6.018.867 |
| — |
| — |
| 135.333 |
| 6.154.200 |
|
Paraguayan operation |
| 1.391.425 |
| — |
| — |
| 7.366 |
| 1.398.791 |
|
Total |
| 9.311.567 |
| — |
| — |
| 142.699 |
| 9.454.266 |
|
According to estimates and cash-flow projections for determining the value in use of the cash-generating units to which the different items of goodwill are attributed, it is believed that the value at the close of the period is recoverable.
As of March 31, 2012, the company’s paid capital consists of the following:
a) Number of Shares
|
| No. Shares |
| No. Shares |
| No. shares with |
|
Series |
| subscribed |
| paid |
| voting rights |
|
Single |
| 280.000.000 |
| 280.000.000 |
| 280.000.000 |
|
The Company’s shares have no restrictions on dividend payments or capital reductions, and they are of no par value.
b) Capital
Concept |
| Subscribed |
| Paid |
|
|
| ThCh$ |
| ThCh$ |
|
Paid-in capital |
| 39.685.061 |
| 39.685.061 |
|
c) Distribution of shareholders
|
| Percentage |
| Number of |
|
Type of shareholder |
| Interest |
| shareholders |
|
|
| % |
|
|
|
Interest of 10% or more |
| 86,28 |
| 2 |
|
Less than 10% interest: |
|
|
|
|
|
Investment UF 200 or more |
| 13,66 |
| 45 |
|
Investment less than UF 200 |
| 0,06 |
| 56 |
|
Total |
| 100,00 |
| 103 |
|
Controller of the company (1) |
| 86,28 |
| 2 |
|
(1) The controllers of the Company are Inversiones Los Aromos Ltda. and Coca-Cola Interamerican Corporation, which have shareholdings of 56.88% and 29.40% respectively.
d) Earnings per share
The basic earnings per share shown in the consolidated statement of comprehensive results is calculated by dividing Earnings attributable to the owners of the controller by the total subscribed and paid shares.
There are no diluting factors that differentiate basic earnings from diluted earnings.
|
|
|
| Accumulated |
|
Detail |
| 2012 |
| 2011 |
|
|
| M$ |
| M$ |
|
Earning attributable to the owners of the controller |
| 6.032.308 |
| 7.572.320 |
|
Total suscribed and paid shares |
| 280.000.000 |
| 280.000.000 |
|
Earnings per basic share |
| 21,54 |
| 27,04 |
|
e) Dividends
As agreed by the shareholders meeting, it is established that the amount of the annual dividend will the equivalent of 50% the earnings for each period.
The following shows the dividends distributed during 2011 and 2010:
Dividend Distributed
|
|
|
|
|
|
|
|
|
| Against |
|
Payment |
| Type of |
| Dividend |
| Pesos |
| Amount of |
| result for |
|
date |
| dividend |
| number |
| per share |
| dividend |
| year |
|
|
|
|
|
|
|
|
| ThCh$ |
|
|
|
Oct-10 |
| Interim |
| 40 |
| 23,60 |
| 6.608.000 |
| 2010 |
|
May-11 |
| Final |
| 41 |
| 48,05 |
| 13.454.000 |
| 2010 |
|
Oct-11 |
| Interim |
| 42 |
| 12,84 |
| 3.595.200 |
| 2011 |
|
As described in Note 2 t), as of March 31, 2012 and December 31, 2011 dividends have been provisioned for ThCh$ 29,565,200 and ThCh$ 3,376,811 respectively.
The dividend provisioned as of March 31, 2012 consists of the final dividend of ThCh$ 8,024,800 and an additional dividend of Ch$76.93 per share, equivalent to ThCh$ 21,540,400.
Regarding the net distributable earnings considered for calculating the minimum obligatory and additional dividends, the ordinary shareholders meeting agreed not to make any adjustments to the Earnings attributable to the owners of the controller. The meeting also agreed that the adjustments for the first IFRS application determined as of December 31, 2008 will be deducted from Accumulated earnings should eventual dividends be distributed.
Equity Reserves
f) Other Reserves
These relate to the monetary correction of paid capital as of December 31, 2008 amounting to ThCh$ 3,243,316 which, as stated the SVS Circular 456 of June 20, 2008, was recorded as a charge to Equity reserves.
g) Translation reserves
These originate as described in Note 2 d. iii). The detail of translation reserves by company in the consolidated statement of financial position at the end of each period is as follows:
Company |
| 31.03.2012 |
| 31.12.2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Inversiones Los Andes Ltda. |
| (12.245.601 | ) | (999.323 | ) |
Kopolar Refrescos S.A. |
| — |
| 5.376 |
|
Paraguay Refrescos S.A. |
| (449 | ) | — |
|
Coca-Cola Polar Argentina S.A. |
| (1.014.221 | ) | (576.117 | ) |
Aconcagua Investing S.A. |
| (4.687 | ) | (4.687 | ) |
Total |
| (13.264.958 | ) | (1.574.751 | ) |
The variation in the translation difference of Inversiones Los Andes Ltda. derives mainly from its investments in the subsidiaries Paraguay Refrescos S.A. and Coca-Cola Polar Argentina S.A., whose currencies are the guaraní and Argentine peso respectively. During the period, these currencies depreciated against the Chilean peso which implied a negative translation effect of ThCh$ 11,246,280.
h) Capital Management
The objective of the Company is to maintain a suitable level of capitalization that allows it to ensure access to the financial markets for the development of its medium and long-term objectives, optimizing the return for its shareholders and maintaining a solid financial position.
The Company considers as capital the equity of the parent corresponding to shares subscribed and paid, translation reserves and accumulated earnings.
As of the date of these interim consolidated financial statements, there are no restrictions relating to capital requirements.
i) Minority Participation
This recognizes the portion of the equity and income of the subsidiaries held by third parties. The following is the detail for the periods ended March 31, 2012 and December 31, 2011:
|
| Minority Interest |
| ||||||||||
|
|
|
|
|
|
|
|
|
| Earnings (loss) |
| ||
|
| Percentage |
| Equity |
| accumulated to March |
| ||||||
Company |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
|
|
| % |
| % |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Paraguay Refrescos S.A. |
| 2,17 |
| 2,00 |
| 1.859.302 |
| 1.932.727 |
| 82.889 |
| 95.708 |
|
Inversiones Los Andes Ltda. |
| 0,01 |
| 0,01 |
| 21 |
| 22 |
| 1 |
| 1 |
|
Transportes Polar S.A. |
| 0,01 |
| 0,01 |
| 1 |
| 1 |
| 1 |
| 1 |
|
Total |
|
|
|
|
| 1.859.324 |
| 1.932.750 |
| 82.891 |
| 95.710 |
|
NOTE 16 - FINANCIAL INSTRUMENTS
The following provides a detail of financial assets and liabilities and their categories at the end of each period:
|
| 31.03.2012 |
| 31.12.2011 |
| ||||
Financial Assets |
| Current |
| Non-Current |
| Corriente |
| No Corriente |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
At fair value through profit and loss |
|
|
|
|
|
|
|
|
|
Cash & cash equivalents |
| 500.000 |
| — |
| — |
| — |
|
Loans & accounts receivable |
|
|
|
|
|
|
|
|
|
Cash & cash equivalents |
| 22.633.810 |
| — |
| 21.655.721 |
| — |
|
Trade & other accounts receivable |
| 25.266.050 |
| — |
| 26.736.139 |
| — |
|
Accounts receivable from related entities |
| 3.455.507 |
| — |
| 4.714.831 |
| — |
|
Total |
| 51.855.367 |
| — |
| 53.106.691 |
| — |
|
|
| 31.03.2012 |
| 31.12.2011 |
| ||||
Financial Liabilities |
| Current |
| Non-Current |
| Current |
| Non-Current |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Measured at amortized cost |
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
|
|
|
|
|
|
|
|
Bank loans |
| 9.463.675 |
| 12.482.320 |
| 9.946.361 |
| 15.017.396 |
|
Bonds payable |
| 181.695 |
| 57.625.655 |
| 233.155 |
| 54.573.429 |
|
Trade & other accounts payable |
| 34.214.301 |
| 4.714.193 |
| 43.003.149 |
| 4.928.209 |
|
Accounts payable to related entities |
| 13.441.757 |
| — |
| 6.807.547 |
| — |
|
Total |
| 57.301.428 |
| 74.822.168 |
| 59.990.212 |
| 74.519.034 |
|
Trade and other accounts receivable exclude Advances to suppliers as these are not financial instruments.
16.1 Financial Assets
a) Loans and Accounts Receivable
i) Cash and Cash Equivalents
The detail of cash and cash equivalents is shown in Note 5.
ii) Trade and other Accounts Receivable
The composition of trade and other accounts receivable at the close of each period is as follows:
Detail |
| 31.03.2012 |
| 31.12.2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Trade debtors, gross |
| 21.219.252 |
| 23.978.121 |
|
Doubtful accounts provision |
| (818.338 | ) | (810.806 | ) |
Other accounts receivable (*) |
| 9.660.377 |
| 7.750.275 |
|
Total |
| 30.061.291 |
| 30.917.590 |
|
(*) Other accounts receivable mainly include advances to suppliers, monthly tax credits and loans to personnel.
Provision for Doubtful Debtors
The movement in provisions for doubtful debtors was as follows:
Movement |
| 31.03.2012 |
| 31.12.2011 |
|
|
| ThCh$ |
| ThCh$ |
|
Initial balance |
| 810.806 |
| 580.747 |
|
|
|
|
|
|
|
Increases (Decreases) |
| 24.347 |
| 221.778 |
|
Increases (Decreases) for foreign exchange |
| (16.815 | ) | 8.281 |
|
Movement |
| 7.532 |
| 230.059 |
|
Closing balance |
| 818.338 |
| 810.806 |
|
Trade debtors and other accounts receivable overdue but not provisioned
The detail of trade debtors and other accounts receivable overdue but not provisioned is as follows:
|
| 31.03.2012 |
| ||||||
|
| Up to |
| 3 to 6 |
| 6 to 12 |
| More than 12 |
|
Concept |
| 3 months |
| months |
| months |
| months |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
Trade receviables, net |
| 326.991 |
| — |
| — |
| — |
|
Total |
| 326.991 |
| — |
| — |
| — |
|
|
| 31.12.2011 |
| ||||||
|
| Up to |
| 3 to 6 |
| 6 to 12 |
| More than 12 |
|
Concept |
| 3 months |
| months |
| months |
| months |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
Trade receviables, net |
| 15.584 |
| 175.857 |
| — |
| — |
|
Total |
| 15.584 |
| 175.857 |
| — |
| — |
|
iii) Accounts Receivable from Related Entities
The detail of accounts receivable from related parties is shown in Note 10.
b) Financial Assets – Local and Foreign Currency
Financial assets by currency at period end are as follow:
|
| 31.03.2012 |
| 31.12.2011 |
| ||||
Financial Assets |
| Current |
| Non-Current |
| Current |
| Non- |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Cash & cash equivalents |
| 23.133.810 |
| — |
| 21.655.721 |
| — |
|
Chilean $ |
| 1.639.814 |
|
|
| 712.339 |
|
|
|
Argentine $ |
| 1.442.778 |
|
|
| 3.187.243 |
|
|
|
Guaraníes |
| 19.281.904 |
|
|
| 16.278.044 |
|
|
|
US Dollars |
| 769.314 |
|
|
| 1.478.095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade & other accounts receivable |
| 25.266.050 |
| — |
| 26.736.139 |
| — |
|
Chilean $ |
| 13.634.470 |
| — |
| 12.468.051 |
| — |
|
Argentine $ |
| 9.201.231 |
| — |
| 9.815.837 |
| — |
|
Guaraníes |
| 2.430.349 |
| — |
| 4.452.251 |
| — |
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable from related entities |
| 3.455.507 |
| — |
| 4.714.831 |
| — |
|
Chilean $ |
| 2.171.408 |
|
|
| 2.546.103 |
|
|
|
Argentine $ |
| 1.284.099 |
|
|
| 1.691.238 |
|
|
|
US Dollars |
| — |
|
|
| 477.490 |
|
|
|
Total |
| 51.855.367 |
| — |
| 53.106.691 |
| — |
|
16.2 Financial Liabilities
a) Bonds Payable
On August 23, 2010, the Company registered in the Securities Register of the SVS two lines of bonds amounting to UF 2,500,000 each, for terms of 10 and 30 years respectively.
On September 1, 2010, the Company placed 2 series of UF bonds on the domestic market, with the following conditions:
Registration No. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
& identification |
| Nominal |
| Term |
| Years |
| Amortization |
| Nominal |
| Effective |
| Nominal |
|
of the instrument |
| value |
| (years) |
| grace |
| interest |
| principal |
| rate |
| value |
|
|
| UF |
| % |
| % |
|
|
|
|
|
|
|
|
|
640 / Series A |
| 1.000.000 |
| 7 |
| 3 |
| Semi-annual |
| Semi-annual |
| 3,00 |
| 3,16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
641 / Series C |
| 1.500.000 |
| 21 |
| 10 |
| Semi-annual |
| Semi-annual |
| 4,00 |
| 3,63 |
|
Credit Rating
The credit rating of the bonds issued on the Chilean market as of December 31, 2011 is as follows:
AA - : Rating of Fitch Chile
AA - : Rating of Feller & Rate
Covenants
The Company’s issue and placement of bonds on the Chilean market is subject to the following covenants:
a) Compliance with applicable laws, regulations and other legal provisions.
b) Not to make investments in instruments issued by related parties nor carry out operations with such parties that are outside the normal course of business, on conditions that are more unfavorable to the issuer compared to those prevailing in the market.
c) Maintain in its quarterly financial statements a level of net financial debt not exceeding 1.5 times, measured on figures in its consolidated statement of financial position. For these purposes, the level of net financial debt is the ratio of net financial debt to the issuer’s total equity (equity attributable to owners of the controllers plus non-controlling interest). Net financial debt is understood to be the difference between the financial debt and cash of the issuer.
d) Maintain in its quarterly financial statements a level of net financial coverage of more than 3 times. Net financial coverage is understood to be the ratio of the EBITDA of the issuer in the last 12 months to net financial expenses (financial income less financial expenses) in the last 12 months. However, this covenant shall be understood to be not complied with only when the level of net financial coverage is below the level indicated for two consecutive quarters.
e) Maintain in its quarterly financial statements assets free of liens amounting to at least 1.3 times its unsecured total liabilities.
The Company is in compliance with all the financial covenants as of March 31, 2012.
16.2 b) Financial Liabilities — Summary
The detail of financial liabilities at the end of each period is as follows:
As of March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current |
| Non-Current |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Effective |
| Nominal |
|
|
|
|
|
|
|
|
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| Rate |
| Rate |
|
|
| Maturity |
| Total |
| Maturity |
| 31.12.2011 |
| ||||||
Tax ID No. |
| Name |
|
|
| Country of |
|
|
| Amortization |
| (Annual) |
| (Annual) |
|
|
| Up to |
| 3 to 12 |
| 31.12.2011 |
| 1 to 3 |
| 3 to 5 |
| 5 year |
| Non- |
|
Debtor |
| Debtor |
| Creditor |
| creditor |
| Currency |
| Principal |
| % |
| % |
| Principal |
| 3 months |
| months |
| Current |
| years |
| years |
| or more |
| Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| Semi-annual |
| 5,8 |
| 5,8 |
| 1.980.000 |
| 375.936 |
| 330.000 |
| 705.936 |
| 1.320.000 |
| — |
| — |
| 1.320.000 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,8 |
| 6,8 |
| 2.817.500 |
| 60.492 |
| — |
| 60.492 |
| 2.817.500 |
| — |
| — |
| 2.817.500 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco Santander |
| Chile |
| Chilean $ |
| At maturity |
| 6,8 |
| 6,8 |
| 2.300.000 |
| 64.014 |
| 2.300.000 |
| 2.364.014 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,8 |
| 6,8 |
| 2.300.000 |
| 63.143 |
| — |
| 63.143 |
| 2.300.000 |
| — |
| — |
| 2.300.000 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,6 |
| 6,6 |
| 1.165.000 |
| — |
| 1.195.439 |
| 1.195.439 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,8 |
| 6,8 |
| 2.682.500 |
| 59.122 |
| — |
| 59.122 |
| 2.682.500 |
| — |
| — |
| 2.682.500 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,4 |
| 6,4 |
| 1.900.000 |
| 61.441 |
| — |
| 61.441 |
| 1.900.000 |
| — |
| — |
| 1.900.000 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco Santander |
| Chile |
| US$ |
| At maturity |
| 2,2 |
| 2,2 |
| 4.874.400 |
| — |
| 4.929.627 |
| 4.929.627 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| US$ |
| At maturity |
| 3,4 |
| 3,4 |
| 1.462.320 |
| 24.461 |
| — |
| 24.461 |
| 1.462.320 |
| — |
| — |
| 1.462.320 |
|
Sub total Bank loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
| 708.609 |
| 8.755.066 |
| 9.463.675 |
| 12.482.320 |
| — |
| — |
| 12.482.320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Nº 640 / Bonos Series A |
| Chile |
| UF |
| Semi-annual |
| 3,16 |
| 3,0 |
| 22.359.613 |
| 133.968 |
| — |
| 133.968 |
| 8.384.855 |
| 11.179.806 |
| 2.794.952 |
| 22.359.613 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Nº 641 / Bonos Series C |
| Chile |
| UF |
| Semi-annual |
| 3,63 |
| 4,0 |
| 35.266.042 |
| 47.727 |
| — |
| 47.727 |
| — |
|
|
| 35.266.042 |
| 35.266.042 |
|
Sub total Bonds payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 181.695 |
| — |
| 181.695 |
| 8.384.855 |
| 11.179.806 |
| 38.060.994 |
| 57.625.655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 890.304 |
| 8.755.066 |
| 9.645.370 |
| 20.867.175 |
| 11.179.806 |
| 38.060.994 |
| 70.107.975 |
|
As of March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-Current |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Effective |
| Nominal |
|
|
| Current |
|
|
| Total |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
| Rate |
| Rate |
|
|
| Maturity |
| Total |
| Maturity |
| 31.12.2011 |
| ||||||
Tax ID No. |
| Name |
|
|
| Country of |
|
|
| Amortization |
| (Annual) |
| (Annual) |
|
|
| Up to |
| 3 to 12 |
| 31.12.2011 |
| 1 to 3 |
| 3 to 5 |
| 5 year |
| Non- |
|
Debtor |
| Debtor |
| Creditor |
| creditor |
| Currency |
| Principal |
| % |
| % |
| Principal |
| 3 months |
| months |
| Current |
| years |
| years |
| or more |
| Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Trade creditors |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 6.485.458 |
| 6.485.458 |
| — |
| 6.485.458 |
| — |
| — |
| — |
| — |
|
96.928.520-7 |
| Transportes Polar S.A. |
| Trade creditors |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 523.921 |
| 523.921 |
| — |
| 523.921 |
| — |
| — |
| — |
| — |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Trade creditors |
| Argentina |
| Argentine $ |
|
|
|
|
|
|
| 10.825.683 |
| 10.825.683 |
| — |
| 10.825.683 |
| — |
| — |
| — |
| — |
|
Foreign |
| Paraguay Refrescos S.A. |
| Trade creditors |
| Paraguay |
| Guaraníes |
|
|
|
|
|
|
| 3.391.798 |
| 3.391.798 |
| — |
| 3.391.798 |
| — |
| — |
| — |
| — |
|
Foreign |
| Paraguay Refrescos S.A. |
| Trade creditors |
| Paraguay |
| Euros |
|
|
|
|
|
|
| 604.603 |
| 157.819 |
| 38.016 |
| 195.835 |
| 408.768 |
| — |
| — |
| 408.768 |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Trade creditors |
| Argentina |
| US$ |
|
|
|
|
|
|
| 1.143.524 |
| 561.507 |
| 32.494 |
| 594.001 |
| 309.804 |
| 239.719 |
| — |
| 549.523 |
|
Foreign |
| Paraguay Refrescos S.A. |
| Trade creditors |
| Paraguay |
| US$ |
|
|
|
|
|
|
| 6.349.012 |
| 3.134.256 |
| 1.697.788 |
| 4.832.044 |
| 1.516.968 |
| — |
| — |
| 1.516.968 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Other accounts payable |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 2.924.534 |
| 2.282.678 |
| 316.318 |
| 2.598.996 |
| 33.050 |
| 33.050 |
| 259.438 |
| 325.538 |
|
96.928.520-7 |
| Transportes Polar S.A. |
| Other accounts payable |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 770.803 |
| 770.803 |
| — |
| 770.803 |
| — |
| — |
| — |
| — |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Other accounts payable |
| Argentina |
| Argentine $ |
|
|
|
|
|
|
| 3.100.553 |
| 3.001.507 |
| 54.378 |
| 3.055.885 |
| 36.713 |
| 7.955 |
| — |
| 44.668 |
|
Foreign |
| Paraguay Refrescos S.A. |
| Other accounts payable |
| Paraguay |
| Guaraníes |
|
|
|
|
|
|
| 939.877 |
| 939.877 |
| — |
| 939.877 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Crate/bottles guarantee |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 991.808 |
| — |
| — |
| — |
| — |
| 991.808 |
| — |
| 991.808 |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Crate/bottles guarantee |
| Argentina |
| Argentine $ |
|
|
|
|
|
|
| 876.920 |
| — |
| — |
| — |
| — |
| 876.920 |
| — |
| 876.920 |
|
Total trade & other accounts payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 32.075.307 |
| 2.138.994 |
| 34.214.301 |
| 2.305.303 |
| 2.149.452 |
| 259.438 |
| 4.714.193 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Coca- Cola de Chile S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 6.023.952 |
| 6.023.952 |
| — |
| 6.023.952 |
| — |
| — |
| — |
| — |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Coca- Cola de Argentina S.A. |
| Argentina |
| Argentine $ |
| At maturity |
|
|
|
|
| 5.528.451 |
| 5.528.451 |
| — |
| 5.528.451 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Envases Central S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 379.189 |
| 379.189 |
| — |
| 379.189 |
| — |
| — |
| — |
| — |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Cervecería Austral S.A. |
| Chile |
| US$ |
| At maturity |
|
|
|
|
| 34.830 |
| 34.830 |
| — |
| 34.830 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Vital Aguas S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 324.616 |
| 324.616 |
| — |
| 324.616 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Vital S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 671.083 |
| 671.083 |
| — |
| 671.083 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Inversiones Las Niñas Dos S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 388.555 |
| 388.555 |
| — |
| 388.555 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Inversiones Las Hualtatas S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 91.081 |
| 91.081 |
| — |
| 91.081 |
| — |
| — |
| — |
| — |
|
Total accounts payable to related entities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 13.441.757 |
| — |
| 13.441.757 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 46.407.368 |
| 10.894.060 |
| 57.301.428 |
| 23.172.478 |
| 13.329.258 |
| 38.320.432 |
| 74.822.168 |
|
16.2 b) Financial Liabilities — Summary, continued
Al 31 de Diciembre de 2011
|
|
|
|
|
|
|
|
|
|
|
| Effective |
| Nominal |
|
|
| Current |
| Non-Current |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Rate |
| Rate |
|
|
| Maturity |
| Total |
| Maturity |
| Total |
| ||||||
Tax ID No. |
| Name |
|
|
| Country of |
|
|
| Amortization |
| (Annual) |
| (Annual) |
|
|
| Up to |
| 3 to 12 |
| 31.12.2010 |
| 1 to 3 |
| 3 to 5 |
| 5 year |
| 31.12.2010 |
|
Debtor |
| Debtor |
| Creditor |
| creditor |
| Currency |
| Principal |
| % |
| % |
| Principal |
| 3 months |
| months |
| Current |
| years |
| years |
| or more |
| Non-Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| Semi-annual |
| 5,8 |
| 5,8 |
| 1.980.000 |
| — |
| 677.107 |
| 677.107 |
| 1.320.000 |
| — |
| — |
| 1.320.000 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,8 |
| 6,8 |
| 2.817.500 |
| — |
| 11.777 |
| 11.777 |
| 2.817.500 |
| — |
| — |
| 2.817.500 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco Santander |
| Chile |
| Chilean $ |
| At maturity |
| 6,8 |
| 6,8 |
| 2.300.000 |
| — |
| 2.324.386 |
| 2.324.386 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,8 |
| 6,8 |
| 2.300.000 |
| — |
| 23.515 |
| 23.515 |
| 2.300.000 |
| — |
| — |
| 2.300.000 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,6 |
| 6,6 |
| 1.165.000 |
| — |
| 1.175.932 |
| 1.175.932 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,8 |
| 6,8 |
| 2.682.500 |
| — |
| 12.742 |
| 12.742 |
| 2.682.500 |
| — |
| — |
| 2.682.500 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| Chilean $ |
| At maturity |
| 6,4 |
| 6,4 |
| 1.900.000 |
| 31.124 |
| — |
| 31.124 |
| 1.900.000 |
| — |
| — |
| 1.900.000 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco Santander |
| Chile |
| US$ |
| At maturity |
| 2,2 |
| 2,2 |
| 5.192.000 |
| 28.664 |
| 5.192.000 |
| 5.220.664 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
| 12.290 |
| 12.290 |
| 1.557.600 |
| — |
| — |
| 1.557.600 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Banco de Chile |
| Chile |
| US$ |
| At maturity |
| 3,4 |
| 3,4 |
| 1.557.600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub total Bank loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 59.788 |
| 9.429.749 |
| 9.489.537 |
| 12.577.600 |
| — |
| — |
| 12.577.600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Nº 640 / Bonos Serie A |
| Chile |
| UF |
| Semi-annual |
| 3,16 |
| 3,0 |
| 21.175.304 |
| 291.532 |
| — |
| 291.532 |
| 5.530.495 |
| 11.060.991 |
| 5.530.495 |
| 22.121.981 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Nº 641 / Bonos Serie C |
| Chile |
| UF |
| Semi-annual |
| 3,63 |
| 4,0 |
| 33.398.125 |
| 398.447 |
| — |
| 398.447 |
| — |
|
|
| 34.891.244 |
| 34.891.244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub total Bonds payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 689.979 |
| — |
| 689.979 |
| 5.530.495 |
| 11.060.991 |
| 40.421.739 |
| 57.013.225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 749.767 |
| 9.429.749 |
| 10.179.516 |
| 18.108.095 |
| 11.060.991 |
| 40.421.739 |
| 69.590.825 |
|
Al 31 de Diciembre de 2011
|
|
|
|
|
|
|
|
|
|
|
| Effective |
| Nominal |
|
|
| Current |
| Non-Current |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Rate |
| Rate |
|
|
| Maturity |
| Total |
| Maturity |
| Total |
| ||||||
Tax No. |
| Name |
|
|
| Country of |
|
|
| Amortization |
| (Annual) |
| (Annual) |
|
|
| Up to |
| 3 to 12 |
| 31.12.2010 |
| 1 to 3 |
| 3 to 5 |
| 5 year |
| 31.12.2010 |
|
Debtor |
| Debtor |
| Creditor |
| creditor |
| Currency |
| Principal |
| % |
| % |
| Principal |
| 3 months |
| months |
| Current |
| years |
| years |
| or more |
| Non-Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Trade creditors |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 6.953.396 |
| 6.953.396 |
| — |
| 6.953.396 |
| — |
| — |
| — |
| — |
|
96.928.520-7 |
| Transportes Polar S.A. |
| Trade creditors |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 650.789 |
| 650.789 |
| — |
| 650.789 |
| — |
| — |
| — |
| — |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Trade creditors |
| Argentina |
| Argentine $ |
|
|
|
|
|
|
| 12.313.018 |
| 12.313.018 |
| — |
| 12.313.018 |
| — |
| — |
| — |
| — |
|
Foreign |
| Paraguay Refrescos S.A. |
| Trade creditors |
| Paraguay |
| Guaraníes |
|
|
|
|
|
|
| 3.413.792 |
| 3.413.792 |
| — |
| 3.413.792 |
| — |
| — |
| — |
| — |
|
Foreign |
| Kopolar Refrescos S.A. |
| Trade creditors |
| Paraguay |
| Guaraníes |
|
|
|
|
|
|
| 520.695 |
| 520.695 |
| — |
| 520.695 |
| — |
| — |
| — |
| — |
|
Foreign |
| Paraguay Refrescos S.A. |
| Trade creditors |
| Paraguay |
| Euros |
|
|
|
|
|
|
| 806.507 |
| 278.344 |
| 53.815 |
| 332.159 |
| 474.348 |
| — |
| — |
| 474.348 |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Trade creditors |
| Argentina |
| US$ |
|
|
|
|
|
|
| 1.610.768 |
| 929.489 |
| 33.597 |
| 963.086 |
| 360.113 |
| 276.958 |
| 10.611 |
| 647.682 |
|
Foreign |
| Paraguay Refrescos S.A. |
| Trade creditors |
| Paraguay |
| US$ |
|
|
|
|
|
|
| 7.858.271 |
| 4.723.490 |
| 1.455.200 |
| 6.178.690 |
| 1.679.581 |
| — |
| — |
| 1.679.581 |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Other accounts payable |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 4.878.870 |
| 4.548.378 |
| — |
| 4.548.378 |
| 16.525 |
| 16.525 |
| 297.442 |
| 330.492 |
|
96.928.520-7 |
| Transportes Polar S.A. |
| Other accounts payable |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 564.521 |
| 564.521 |
| — |
| 564.521 |
| — |
| — |
| — |
| — |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Other accounts payable |
| Argentina |
| Argentine $ |
|
|
|
|
|
|
| 5.025.874 |
| 4.868.261 |
| 157.613 |
| 5.025.874 |
| — |
| — |
| — |
| — |
|
Foreign |
| Paraguay Refrescos S.A. |
| Other accounts payable |
| Paraguay |
| Guaraníes |
|
|
|
|
|
|
| 1.518.166 |
| 1.518.166 |
| — |
| 1.518.166 |
| — |
| — |
| — |
| — |
|
Foreign |
| Kopolar Refrescos S.A. |
| Other accounts payable |
| Paraguay |
| Guaraníes |
|
|
|
|
|
|
| 20.585 |
| 20.585 |
| — |
| 20.585 |
| — |
| — |
| — |
| — |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Crate/bottles guarantee |
| Chile |
| Chilean $ |
|
|
|
|
|
|
| 886.063 |
| — |
| — |
| — |
| — |
| 886.063 |
| — |
| 886.063 |
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Crate/bottles guarantee |
| Argentina |
| Argentine $ |
|
|
|
|
|
|
| 910.043 |
| — |
| — |
| — |
| — |
| 910.043 |
| — |
| 910.043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total trade & other accounts payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 41.302.924 |
| 1.700.225 |
| 43.003.149 |
| 2.530.567 |
| 2.089.589 |
| 308.053 |
| 4.928.209 |
|
Al 31 de Diciembre de 2011
|
|
|
|
|
|
|
|
|
|
|
| Effective |
| Nominal |
|
|
| Current |
| Non-Current |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Rate |
| Rate |
|
|
| Maturity |
| Total |
| Maturity |
| Total |
| ||||||
Tax No. |
| Name |
|
|
| Country of |
|
|
| Amortization |
| (Annual) |
| (Annual) |
|
|
| Up to |
| 3 to 12 |
| 31.12.2010 |
| 1 to 3 |
| 3 to 5 |
| 5 year |
| 31.12.2010 |
|
Debtor |
| Debtor |
| Creditor |
| creditor |
| Currency |
| Principal |
| % |
| % |
| Principal |
| 3 months |
| months |
| Current |
| years |
| years |
| or more |
| Non-Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Coca- Cola de Chile S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 2.168.751 |
| 2.168.751 |
| — |
| 2.168.751 |
| — |
| — |
|
|
|
|
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Coca- Cola de Argentina S.A. |
| Argentina |
| Argentine $ |
| At maturity |
|
|
|
|
| 2.861.401 |
| 2.861.401 |
| — |
| 2.861.401 |
| — |
| — |
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Envases Central S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 342.161 |
| 342.161 |
| — |
| 342.161 |
| — |
| — |
|
|
|
|
|
Foreign |
| Coca-Cola Polar Argentina S.A |
| Cervecería Austral S.A. |
| Chile |
| US$ |
| At maturity |
|
|
|
|
| 27.478 |
| 27.478 |
| — |
| 27.478 |
| — |
| — |
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Vital Aguas S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 293.497 |
| 293.497 |
| — |
| 293.497 |
| — |
| — |
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Vital S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 716.666 |
| 716.666 |
| — |
| 716.666 |
| — |
| — |
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Inversiones Las Niñas Dos S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 268.043 |
| 268.043 |
| — |
| 268.043 |
| — |
| — |
|
|
|
|
|
93.473.000-3 |
| Emb. Coca-Cola Polar S.A |
| Inversiones Las Hualtatas S.A. |
| Chile |
| Chilean $ |
| At maturity |
|
|
|
|
| 129.550 |
| 129.550 |
| — |
| 129.550 |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accounts payable to related entities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6.807.547 |
|
|
| 6.807.547 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 48.860.238 |
| 11.129.974 |
| 59.990.212 |
| 20.638.662 |
| 13.150.580 |
| 40.729.792 |
| 74.519.034 |
|
16.3 Financial Liabilities — Maturity Analysis
The following shows an analysis at the close of each period of the maturities of the financial liabilities, which include the contractual interest payable (not accrued at the date of closing):
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
| Maturity |
| Accumulated |
| ||
|
| Less than |
| 1 to 3 |
| 3 to 5 |
| 5 years |
| to March 31, |
|
Description |
| 1 year |
| years |
| years |
| or more |
| 2012 |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Bank loans |
| 9.463.675 |
| 12.482.320 |
| — |
| — |
| 21.945.995 |
|
Bonds payable |
| 2.009.764 |
| 12.343.781 |
| 14.531.404 |
| 49.042.430 |
| 77.927.379 |
|
Trade creditors & other accounts payable |
| 34.214.301 |
| 2.305.303 |
| 2.149.452 |
| 259.438 |
| 38.928.494 |
|
Accounts payable related entities |
| 13.441.757 |
| — |
| — |
| — |
| 13.441.757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial liabilities |
| 59.129.497 |
| 27.131.404 |
| 16.680.856 |
| 49.301.868 |
| 152.243.625 |
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
| Maturity |
| Accumulated |
| ||
|
| Less than |
| 1 to 3 |
| 3 to 5 |
| 5 years |
| to March 31, |
|
Description |
| 1 year |
| years |
| years |
| or more |
| 2011 |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Bank loans |
| 9.489.537 |
| 12.577.600 |
| — |
| — |
| 22.067.137 |
|
Bonds payable |
| 1.988.405 |
| 9.508.825 |
| 14.542.936 |
| 52.053.224 |
| 78.093.390 |
|
Trade & other accounts payable |
| 43.003.149 |
| 2.530.567 |
| 2.089.589 |
| 308.053 |
| 47.931.358 |
|
Accounts payable related entities |
| 6.807.547 |
| — |
| — |
| — |
| 6.807.547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financial Liabilities |
| 61.288.638 |
| 24.616.992 |
| 16.632.525 |
| 52.361.277 |
| 154.899.432 |
|
16.4 Fair Value of Financial Instruments
The market value of financial instruments recorded at fair value through profit and loss has been obtained by using the market-price method (type 1 valuation). The valuation process does not currently consider the valuation methods by approximation or internal price modeling, so all the prices of financial instruments valued at fair value are obtained through direct market quotations.
The prices and discount rates employed for valuation purposes are obtained through banks and recognized price makers, of generalized, recurring and agreed quotation by the market, which ensures the reliability of the reference prices.
There are no significant differences as of March 31, 2012 and December 31, 2011 between the book and fair values of the financial instruments.
16.5 Financial Risk Management
In carrying on its daily business, Coca-Cola Polar is faced by various factors that could impact on the achievement of its objectives of financial profitability and sustainability. These factors can impact the organization through different transmission mechanisms, generating scenarios of financial uncertainty which could result in non-compliance by suppliers of inputs and counterparties of financial transactions, contractions of liquidity, significant variations in the value of assets and liabilities held in portfolio, etc.
Coca-Cola Polar therefore identifies the important risks in its area of actions in the following way:
· Credit risk
The concept of credit risk is employed by Coca-Cola Polar to refer to financial uncertainty, in different time horizons, related to compliance with the obligations signed by counterparties, at the time of exercising contractual rights for receiving cash or other financial assets by Coca-Cola Polar.
j) Exposures
The exposure of the financial assets consists of cash and cash equivalents and trade and other accounts receivable, which account for 45% and 49% respectively. However, the exposure related to trade debtors ceases to be significant when considering that the average collection time is no more than 20 days.
k) Financial assets that are not overdue or impaired
The business scarcely shows signs of fall in overdue accounts receivable related to the different sales channels. Historic evidence shows average collection times of less than one month, with periods overdue not exceeding 10 days.
Investment decisions in financial instruments (e.g. fixed income) have historically tried to seek issuers with an external credit rating such as to safeguard the financial objectives for which these transactions are carried out. Long-term investments require the issuer to have a rating of at least A1 (Moody’s) /A (Fitch), while short-term investments are preferred to be made with institutions with the best debt credit ratings from the same international agencies and/or the regulatory institutions of the countries in which the Company operates.
The following are the credit ratings of the financial institutions where short-term investments are made.
|
|
|
| Credit |
| Rating |
|
Entity |
| Amount |
| rating |
| agency |
|
|
| M$ |
|
|
|
|
|
Banco Regional SAECA |
| 6.537.904 |
| A+ |
| Feller Rate |
|
BBVA Paraguay SA |
| 3.750.452 |
| AA |
| Feller Rate |
|
Itau S.A. |
| 5.208.594 |
| AA |
| Feller Rate |
|
HSBC Bank Paraguay |
| 2.633.035 |
| AA |
| Feller Rate |
|
Banco Continental |
| 1.379.092 |
| A+ |
| Feller Rate |
|
Total |
| 19.509.077 |
|
|
|
|
|
· Financial assets that would have been overdue or impaired if they had not been restructured
The Company has no significant financial assets that have been restructured in this period.
l) Overdue or impaired financial assets
Overdue and impaired financial assets are set out in Note 16.1 a.ii).
m) Financial risk
The concept of financial risk is employed by Coca-Cola Polar to refer to financial uncertainty, at different time horizons, related to its capacity to respond to those cash requirements that support its operations, both in normal conditions and in exceptional ones.
Liabilities by maturity are set out in Note 16.3.
n) Market risk
The concept of market risk is employed by Coca-Cola Polar to refer to financial uncertainty, at different time horizons, related to the future behavior of market variables relevant to its financial performance.
The Company is mainly faced by variations in the value of future disbursements related to liabilities expressed on dollars in each of the markets where it currently operates. Variations in the dollar exchange rate against the guaraní are risk factors that affect the Company.
The sensitivity analysis shows the effects of the impact on results that might occur as a result of variations in the relevant exchange rates associated with the financial instruments that generate exposure to the Company.
|
|
|
|
|
|
|
| Market |
| Exchange |
| Sensitivity |
| Effect on |
|
Classification |
| Group |
| Type |
| Exposure |
| variable |
| rate |
| (1) |
| results |
|
|
|
|
|
|
| ThCh$ |
|
|
|
|
|
|
| ThCh$ |
|
Financial assets |
| Cash & cash equivalents |
| Balance in banks & deposits |
| 758.328 |
| USD / GS |
| 4.275 |
| + 42,9 | % | 325.505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| - 7,5 | % | (56.764 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
| Other financial liabilities |
| Other financial liabilities |
| 6.336.720 |
| USD / $Ch |
| 487,44 |
| + 37,4 | % | (2.372.500 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| - 10,2 | % | 646.490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade & other accounts payable |
| Trade creditors |
| 6.349.012 |
| USD / GS |
| 4.275 |
| + 37,4 | % | (2.725.248 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| - 10,2 | % | 475.248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade & other accounts payable |
| Trade creditors |
| 1.143.523 |
| USD / $Arg |
| 4,38 |
| 0,0 | % | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| - 30,9 | % | 352.859 |
|
(1) The exchange-rate variations were obtained by considering the maximum and minimum parities in the last 4 years with respect to the closing exchange rate.
· Financial risk management mechanisms adopted
The management of Coca-Cola Polar understands that having an institutional framework for protecting the entity´s financial objectives, through financial-risk management, is an essential element in achieving the long-term objectives for the interests of the Company.
It is therefore a priority for Coca-Cola Polar to constantly complement current risk evaluation with a robust strategy in terms of the procedures adopted and their consistency with the business cycle, nature of the operations and the markets in which it operates.
The Company’s strategy has the following components:
· Corporate governance structure
· Clear segregation of functions
· Protection of the principles of Independence in decision-taking
· Control environment
· Methodologies
· Information systems
· Procedures
· Contingency plans
NOTE 17 - LOCAL AND FOREIGN CURRENCY
a) Assets
|
| Accumulated to March |
| ||||||
|
| March 31,2012 |
| December 31,2011 |
| ||||
ASSETS |
| Current |
| Non-Current |
| Current |
| Non-Current |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Cash & cash equivalents |
| 23.133.810 |
| — |
| 21.655.721 |
| — |
|
Chilean $ |
| 1.639.814 |
|
|
| 712.339 |
| — |
|
Argentine $ |
| 1.442.778 |
| — |
| 3.187.243 |
| — |
|
Guaraníes |
| 19.281.904 |
| — |
| 16.278.044 |
| — |
|
US Dollars |
| 769.314 |
| — |
| 1.478.095 |
| — |
|
|
|
|
|
|
|
|
|
|
|
Other non-financial assets |
| 1.751.317 |
| 1.611.066 |
| 1.445.854 |
| 1.614.484 |
|
Chilean $ |
| 661.565 |
| 169.705 |
| 519.015 |
| 226.551 |
|
Argentine $ |
| 211.316 |
| 1.025.243 |
| 241.526 |
| 907.545 |
|
Guaraníes |
| 421.627 |
| 281.725 |
| 493.515 |
| 344.065 |
|
US Dollars |
| 456.809 |
| 134.393 |
| 191.798 |
| 136.323 |
|
|
|
|
|
|
|
|
|
|
|
Trade & other accounts receivable |
| 30.061.291 |
| — |
| 30.917.590 |
| — |
|
Chilean $ |
| 13.634.470 |
| — |
| 12.468.051 |
| — |
|
Argentine $ |
| 9.201.231 |
| — |
| 9.815.837 |
| — |
|
Guaraníes |
| 7.225.590 |
| — |
| 8.633.702 |
| — |
|
|
|
|
| — |
|
|
|
|
|
Accounts receivable from related entities |
| 3.455.507 |
| — |
| 4.714.831 |
| — |
|
Chilean $ |
| 2.171.408 |
|
|
| 2.546.103 |
| — |
|
Argentine $ |
| 1.284.099 |
| — |
| 1.691.238 |
| — |
|
US Dollars |
| — |
| — |
| 477.490 |
| — |
|
|
|
|
| — |
|
|
|
|
|
Inventories |
| 21.609.297 |
| — |
| 23.099.370 |
| — |
|
Chilean $ |
| 7.172.367 |
| — |
| 7.094.796 |
| — |
|
Argentine $ |
| 6.380.938 |
| — |
| 5.427.463 |
| — |
|
Guaraníes |
| 8.055.992 |
| — |
| 10.577.111 |
| — |
|
|
|
|
|
|
|
|
|
|
|
Current tax assets |
| 1.470.511 |
| — |
| 2.217.661 |
| — |
|
Argentine $ |
| 220.494 |
| — |
| 274.966 |
| — |
|
Chilean $ |
| 1.250.017 |
| — |
| 1.353.337 |
| — |
|
Guaraníes |
| — |
| — |
| 589.358 |
| — |
|
|
|
|
|
|
|
|
|
|
|
Investments in associates using the |
| — |
| 6.780.283 |
| — |
| 6.658.180 |
|
Participation method |
|
|
|
|
|
|
|
|
|
Chilean $ |
| — |
| 6.780.283 |
| — |
| 6.658.180 |
|
|
|
|
|
|
|
|
|
|
|
Intangible assets other than goodwill |
| — |
| 2.586.760 |
| — |
| 2.660.960 |
|
Chilean $ |
| — |
| 1.729.659 |
| — |
| 1.766.229 |
|
Argentine $ |
| — |
| 857.101 |
|
|
| 894.731 |
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
| — |
| 9.023.552 |
| — |
| 9.454.266 |
|
Chilean $ |
| — |
| 3.889.750 |
| — |
| 3.889.750 |
|
Argentine $ |
| — |
| 5.093.288 |
| — |
| 5.520.319 |
|
Guaraníes |
| — |
| 40.514 |
| — |
| 44.197 |
|
|
|
|
|
|
|
|
|
|
|
Property, plant & equipment, net |
| — |
| 161.924.808 |
| — |
| 167.627.602 |
|
Chilean $ |
| — |
| 52.416.147 |
| — |
| 50.398.834 |
|
Argentine $ |
| — |
| 44.412.185 |
| — |
| 47.631.403 |
|
Guaraníes |
| — |
| 65.096.476 |
| — |
| 69.597.365 |
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets |
|
|
| 6.106.685 |
| — |
| 6.053.408 |
|
Chilean $ |
| — |
| 883.827 |
| — |
| 902.272 |
|
Argentine $ |
| — |
| 4.776.654 |
| — |
| 4.805.033 |
|
Guaraníes |
| — |
| 446.204 |
| — |
| 346.103 |
|
Total |
| 81.481.733 |
| 188.033.154 |
| 84.051.027 |
| 194.068.900 |
|
b) Liabilities
|
| MARCH 31, 2012 | |||||||||||||
|
| Current |
| Non-Current |
| ||||||||||
|
| Maturity |
| Total |
| Maturity |
| Total |
| ||||||
|
| One to three |
| Three to twelve |
| 31.03.2012 |
| One to three |
| Three to five |
| Over five |
| 31.03.2012 |
|
LIABILITIES |
| months |
| months |
| Current |
| years |
| years |
| years |
| Non-Current |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities |
| 890.304 |
| 8.755.066 |
| 9.645.370 |
| 20.867.175 |
| 11.179.806 |
| 38.060.994 |
| 70.107.975 |
|
Chilean $ |
| 684.148 |
| 3.825.439 |
| 4.509.587 |
| 11.020.000 |
| — |
| — |
| 11.020.000 |
|
Unidad de Fomento (UF) |
| 181.695 |
| — |
| 181.695 |
| 8.384.855 |
| 11.179.806 |
| 38.060.994 |
| 57.625.655 |
|
US Dollars |
| 24.461 |
| 4.929.627 |
| 4.954.088 |
| 1.462.320 |
| — |
| — |
| 1.462.320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade creditors & other accounts payable |
| 32.075.307 |
| 2.138.994 |
| 34.214.301 |
| 2.305.303 |
| 2.149.452 |
| 259.438 |
| 4.714.193 |
|
Chilean $ |
| 10.062.860 |
| 316.318 |
| 10.379.178 |
| 33.050 |
| 1.024.858 |
| 259.438 |
| 1.317.346 |
|
Argentine $ |
| 13.827.190 |
| 54.378 |
| 13.881.568 |
| 36.713 |
| 884.875 |
| — |
| 921.588 |
|
Guaraníes |
| 4.331.675 |
| — |
| 4.331.675 |
| — |
| — |
| — |
| — |
|
Euros |
| 157.819 |
| 38.016 |
| 195.835 |
| 408.768 |
| — |
| — |
| 408.768 |
|
US Dollars |
| 3.695.763 |
| 1.730.282 |
| 5.426.045 |
| 1.826.772 |
| 239.719 |
| — |
| 2.066.491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable to related entities |
| 13.441.757 |
| — |
| 13.441.757 |
| — |
| — |
| — |
| — |
|
Chilean $ |
| 7.878.476 |
| — |
| 7.878.476 |
| — |
| — |
| — |
| — |
|
Argentine $ |
| 5.528.451 |
| — |
| 5.528.451 |
| — |
| — |
| — |
| — |
|
US Dollars |
| 34.830 |
| — |
| 34.830 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other short-term provisions |
| 1.278.410 |
| 556.333 |
| 1.834.743 |
| — |
| — |
| — |
| — |
|
Chilean $ |
| 906.434 |
| — |
| 906.434 |
| — |
| — |
| — |
| — |
|
Argentine $ |
| 184.769 |
| 214.490 |
| 399.259 |
| — |
| — |
| — |
| — |
|
Guaraníes |
| 187.207 |
| 341.843 |
| 529.050 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax liabilities |
| 92.537 |
| — |
| 92.537 |
| — |
| — |
| — |
| — |
|
Guaraníes |
| 92.537 |
| — |
| 92.537 |
| — |
| — |
| — |
| — |
|
|
| MARCH 31,2012 |
| ||||||||||||
|
| Current |
| Non-Current |
| ||||||||||
|
| Maturity |
| Total |
| Maturity |
| Total |
| ||||||
|
| One to three |
| Three to twelve |
| 31.03.2012 |
| One to three |
| Three to five |
| Over five |
| 31.03.2012 |
|
LIABILITIES |
| months |
| months |
| Current |
| years |
| years |
| years |
| Non-Current |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Other non-financial liabilities |
| 29.565.200 |
| — |
| 29.565.200 |
| — |
| — |
| — |
| — |
|
Chilean $ |
| 29.565.200 |
| — |
| 29.565.200 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities |
| — |
| — |
| — |
| — |
| — |
| 9.624.555 |
| 9.624.555 |
|
Chilean $ |
| — |
| — |
| — |
| — |
| — |
| 5.659.513 |
| 5.659.513 |
|
Argentine $ |
| — |
| — |
| — |
| — |
| — |
| 3.219.983 |
| 3.219.983 |
|
Guaraníes |
| — |
| — |
| — |
| — |
| — |
| 745.059 |
| 745.059 |
|
Total |
| 77.343.515 |
| 11.450.393 |
| 88.793.908 |
| 23.172.478 |
| 13.329.258 |
| 47.944.987 |
| 84.446.723 |
|
Liabilities, continued
|
| DECEMBER 31, 2011 |
| ||||||||||||
|
| Current |
| Non-Current |
| ||||||||||
|
| Maturity |
| Total |
| Maturity |
| Total |
| ||||||
|
| One to three |
| Three to twelve |
| 31.12.2011 |
| One to three |
| Three to five |
| Over five |
| 31.12.2011 |
|
LIABILITIES |
| months |
| months |
| Current |
| years |
| years |
| years |
| Non-Current |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities |
| 749.767 |
| 9.429.749 |
| 10.179.516 |
| 18.108.095 |
| 11.060.991 |
| 40.421.739 |
| 69.590.825 |
|
Chilean $ |
| 31.124 |
| 4.225.459 |
| 4.256.583 |
| 11.020.000 |
| — |
| — |
| 11.020.000 |
|
Unidad de Fomento (UF) |
| 689.979 |
| — |
| 689.979 |
| 5.530.495 |
| 11.060.991 |
| 40.421.739 |
| 57.013.225 |
|
US Dollars |
| 28.664 |
| 5.204.290 |
| 5.232.954 |
| 1.557.600 |
| — |
| — |
| 1.557.600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade creditors & other accounts payable |
| 41.302.924 |
| 1.700.225 |
| 43.003.149 |
| 2.530.567 |
| 2.089.589 |
| 308.053 |
| 4.928.209 |
|
Chilean $ |
| 12.717.084 |
| — |
| 12.717.084 |
| 16.525 |
| 902.588 |
| 297.442 |
| 1.216.555 |
|
Argentine $ |
| 17.181.279 |
| 157.613 |
| 17.338.892 |
| — |
| 910.043 |
| — |
| 910.043 |
|
Guaraníes |
| 5.473.238 |
| — |
| 5.473.238 |
| — |
| — |
| — |
| — |
|
Euros |
| 278.344 |
| 53.815 |
| 332.159 |
| 474.348 |
| — |
| — |
| 474.348 |
|
US Dollars |
| 5.652.979 |
| 1.488.797 |
| 7.141.776 |
| 2.039.694 |
| 276.958 |
| 10.611 |
| 2.327.263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable to related entities |
| 6.807.547 |
| — |
| 6.807.547 |
| — |
| — |
| — |
| — |
|
Chilean $ |
| 3.918.668 |
| — |
| 3.918.668 |
| — |
| — |
| — |
| — |
|
Argentine $ |
| 2.861.401 |
| — |
| 2.861.401 |
| — |
| — |
| — |
| — |
|
US Dollars |
| 27.478 |
| — |
| 27.478 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other short-term provisions |
| 170.996 |
| 1.742.947 |
| 1.913.943 |
| — |
| — |
| — |
| — |
|
Chilean $ |
| — |
| 884.500 |
| 884.500 |
| — |
| — |
| — |
| — |
|
Argentine $ |
| 165.462 |
| 321.267 |
| 486.729 |
| — |
| — |
| — |
| — |
|
Guaraníes |
| 5.534 |
| 537.180 |
| 542.714 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax liabilities |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
|
Guaraníes |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
|
|
| DECEMBER 2011 |
| ||||||||||||
|
| Current |
| Non-Current |
| ||||||||||
|
| Maturity |
| Total |
| Maturity |
| Total |
| ||||||
|
| One to three |
| Three to twelve |
| 31.12.2011 |
| One to three |
| Three to five |
| Over five |
| 31.12.2011 |
|
LIABILITIES |
| months |
| months |
| Current |
| years |
| years |
| years |
| Non-Current |
|
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-financial liabilities |
| — |
| 3.376.811 |
| 3.376.811 |
| — |
| — |
| — |
| — |
|
Chilean $ |
| — |
| 3.376.811 |
| 3.376.811 |
| — |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities |
| — |
| — |
| — |
| — |
| — |
| 10.125.957 |
| 10.125.957 |
|
Chilean $ |
| — |
| — |
| — |
| — |
| — |
| 5.717.888 |
| 5.717.888 |
|
Argentine $ |
| — |
| — |
| — |
| — |
| — |
| 3.165.841 |
| 3.165.841 |
|
Guaraníes |
| — |
| — |
| — |
| — |
| — |
| 1.242.228 |
| 1.242.228 |
|
Total |
| 49.031.234 |
| 16.249.732 |
| 65.280.966 |
| 20.638.662 |
| 13.150.580 |
| 50.855.749 |
| 84.644.991 |
|
NOTE 18 - GUARANTEES AND COMMITMENTS
The Company has no guarantees or commitments to disclose as of March 31, 2012.
There have been no events of a financial or other nature between March 31, 2012 and the date of issue of these consolidated financial statements that significantly affect the balances or their interpretation.
Apart for shareholder meetings, there are no other levels that have the power to amend these financial statements once issued.
The Company has a long-term sustainable development policy for its operations, in harmony with the environment. In this context, investments are made in installations, equipment and industrial plants that contemplate state-of-the-art technology, in line with the latest developments in these matters.
The parent and subsidiaries have obtained their certification under the ISO 14.001 and 9.001 international quality standards.
Disbursements made by the parent and subsidiaries relating to environmental activities during 2012 amount to ThCh$ 37,745 (ThCh$ 27,289 in 2011).
The principal actions for environmental protection carried out by the Company as as follows:
a) Preventive maintenance of boilers in order to reduce oil consumption and minimize the emission of toxic gases.
b) The Company has treatment plants in all its production centers through which the industrial liquid waste is treated, in order to reintroduce it into the public network in accordance with current legislation.
c) Controlled handling of waste: plastics, cardboard, packaging and solid materials, handing them over to specialist recycling companies.
Disbursements related to environmental activities are recorded as production expenses in the period in which they are made.