UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
COMPANIA CERVECERIAS UNIDAS S.A.
(Exact name of Registrant as specified in its charter)
UNITED BREWERIES COMPANY, INC.
(Translation of Registrant's name into English)
Republic of Chile
(Jurisdiction of incorporation or organization)
Vitacura 2670, 23
rd
floor, Santiago, Chile
(Address of principal executive offices)
_________________________________________
Securities registered or to be registered pursuant to section 12(b) of the Act.
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F
X
Form 40-F ___
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes ___ No
X
COMPANIA CERVECERIAS UNIDAS S.A. AND SUBSIDIARIES
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Figures expressed in thousands of Chilean pesos)
As of and for the six-months period ended June 30, 2023
INDEX
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Assets) 4
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Liabilities and equity) 5
INTERIM CONSOLIDATED STATEMENTS OF INCOME 6
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 7
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 8
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW 9
Note 1 General Information 10
Note 2 Summary of significant accounting policies 20
2.1 Basis of preparation 20
2.2 Basis of consolidation 20
2.3 Financial information as per operating segments 21
2.4 Foreign currency and adjustment units 22
2.5 Cash and cash equivalents 23
2.6 Other financial assets 24
2.7 Financial instruments 24
2.8 Financial asset impairment 26
2.9 Inventories 27
2.10 Current biological assets 27
2.11 Other non-financial assets 27
2.12 Property, plant and equipment 27
2.13 Leases 28
2.14 Investment properties assets 28
2.15 Intangible assets other than goodwill 28
2.16 Goodwill 29
2.17 Impairment of non-financial assets other than goodwill 29
2.18 Non-current assets of disposal groups classified as held for sale 30
2.19 Income taxes 30
2.20 Employees benefits 30
2.21 Provisions 31
2.22 Revenue recognition 31
2.23 Commercial agreements with distributors and supermarket chains 32
2.24 Cost of sales of products 32
2.25 Other incomes by function 32
2.26 Other expenses by function 32
2.27 Distribution expenses 32
2.28 Administrative expenses 32
2.29 Environment liabilities 32
Note 3 Estimates and application of professional judgment 33
Note 4 Accounting changes 33
Note 5 Risk Administration 34
Note 6 Financial Information as per operating segments 41
Note 7 Financial Instruments 47
Note 8 Cash and cash equivalents 54
Note 9 Other non-financial assets 59
Note 10 Trade and other receivables 60
Note 11 Accounts and transactions with related parties 63
Note 12 Inventories 71
Note 13 Biological assets 72
Note 14 Non-current assets of disposal groups classified as held for sale 73
Note 15 Business Combinations 74
Note 16 Investments accounted for using equity method 74
Note 17 Intangible assets other than goodwill 78
Note 18 Goodwill 80
Note 19 Property, plant and equipment 83
Note 20 Investment Property 85
Note 21 Other financial liabilities 86
Note 22 Right of use assets and Lease liabilities 104
Note 23 Trade and other payables 110
Note 24 Other provisions 110
Note 25 Income taxes 111
Note 26 Employee Benefits 114
Note 27 Other non-financial liabilities 117
Note 28 Common Shareholders' Equity 118
Note 29 Non-controlling Interests 122
Note 30 Nature of cost and expense 124
Note 31 Other income by function 124
Note 32 Other Gains (Losses) 125
Note 33 Financial results 125
Note 34 Effects of changes in currency exchange rate 126
Note 35 Contingencies and Commitments 130
Note 36 Subsequent Events 132
Compania Cervecerias Unidas S.A. and subsidiaries
Interim Consolidated Statements of Financial Position
(Figures expressed in thousands of Chilean pesos)
INTERIMCONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Assets)
AS OF JUNE 30, 2023 AND DECEMBER 31, 2022
ASSETS Notes As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Current assets
Cash and cash equivalents 8 591,015,446 597,081,675
Other financial assets 7 25,593,234 45,657,992
Other non-financial assets 9 32,012,214 22,037,741
Trade and other 10 310,599,397 445,263,536
current receivables
Accounts receivable 11 5,197,480 6,204,099
from related parties
Inventories 12 485,774,694 480,799,534
Biological assets 13 1,547,265 16,180,293
Current tax assets 25 46,188,641 46,707,525
Total current assets other than non-current assets 1,497,928,371 1,659,932,395
of disposal groups classified as held for sale
Non-current assets of disposal 14 2,003,837 2,016,037
groups classified as held for sale
Total Non-current assets of disposal 2,003,837 2,016,037
groups classified as held for sale
Total current assets 1,499,932,208 1,661,948,432
Non-current assets
Other financial assets 7 37,847,395 37,054,245
Other non-financial assets 9 12,218,291 12,613,444
Trade and other 10 3,387,097 3,941,760
non-current receivables
Accounts receivable 11 42,506 42,506
from related parties
Investments accounted 16 142,261,840 140,926,012
for using equity method
Intangible assets 17 172,784,478 172,389,672
other than goodwill
Goodwill 18 137,517,540 136,969,434
Property, plant and 19 1,352,027,696 1,356,846,302
equipment (net)
Investment property 20 10,248,246 10,283,994
Right of use assets 22 38,340,160 34,865,971
Deferred tax assets 25 31,494,121 27,197,207
Total non-current assets 1,938,169,370 1,933,130,547
Total Assets 3,438,101,578 3,595,078,979
F-
4
The accompanying notes 1 to 36 are an integral part of these Interim Consolidated Financial Statements.
Compania Cervecerias Unidas S.A. and subsidiaries
Interim Consolidated Statements of Financial Position
(Figures expressed in thousands of Chilean pesos)
INTERIM
CONSOLIDATEDSTATEMENTS OF FINANCIAL POSITION
(Liabilities and equity
)
AS OF JUNE 30, 2023 AND DECEMBER 31, 2022
LIABILITIES AND EQUITY Notes As of June 30, 2023 As of December 31, 2022
LIABILITIES ThCh$ ThCh$
Current liabilities
Other financial liabilities 21 120,221,108 185,879,251
Current lease liabilities 22 8,112,477 9,120,616
Trade and other current payables 23 352,530,301 491,315,277
Accounts payable to related parties 11 35,488,377 34,282,408
Other current provisions 24 2,679,812 2,656,140
Current tax liabilities 25 7,113,423 9,064,074
Provisions for employee benefits 26 33,823,607 43,184,275
Other non-financial liabilities 27 33,492,432 21,650,379
Total current liabilities 593,461,537 797,152,420
Non-current liabilities
Other financial liabilities 21 1,232,842,206 1,175,706,699
Non-current lease liabilities 22 35,633,127 31,306,552
Trade and other non-current payables 23 7,946 20,945
Accounts payable to related parties 11 323,563 -
Other non-current provisions 24 360,999 379,958
Deferred taxes liabilities 25 122,136,357 112,699,828
Provisions for employee benefits 26 42,312,950 41,843,524
Total non-current liabilities 1,433,617,148 1,361,957,506
Total Liabilities 2,027,078,685 2,159,109,926
EQUITY
Equity attributable to equity holders of the parent 28
Paid-in capital 562,693,346 562,693,346
Other reserves (135,905,680) (90,712,471)
Retained earnings 870,257,432 843,045,191
Total equity attributable to equity holders of the parent 1,297,045,098 1,315,026,066
Non-controlling interests 29 113,977,795 120,942,987
Total Shareholders' Equity 1,411,022,893 1,435,969,053
Total Liabilities and Shareholders' Equity 3,438,101,578 3,595,078,979
F-
5
The accompanying notes 1 to 36 are an integral part of these Interim Consolidated Financial Statements.
Compania Cervecerias Unidas S.A. and subsidiaries
Interim Consolidated Statements of Income
(Figures expressed in thousands of Chilean pesos)
INTERIM
CONSOLIDATED STATEMENTS OF INCOME
INTERIM CONSOLIDATED Notes For the six-months periods For the three-monts periods
STATEMENT OF INCOME ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Net sales 6 1,306,272,462 1,258,967,815 574,241,703 558,502,884
Cost of sales 30 (701,911,961) (709,934,727) (324,826,384) (333,194,474)
Gross margin 604,360,501 549,033,088 249,415,319 225,308,410
Other income 31 1,649,606 1,928,807 847,974 1,114,213
by function
Distribution costs 30 (255,358,964) (231,398,044) (116,809,785) (108,715,375)
Administrative 30 (84,834,858) (81,141,072) (52,476,442) (45,691,984)
expenses
Other expenses 30 (148,642,461) (134,198,950) (68,025,521) (73,686,271)
by function
Other gains (losses) 32 (10,326,347) 4,525,273 (2,873,551) 13,516,855
Income from operational 106,847,477 108,749,102 10,077,994 11,845,848
activities
Finance income 33 23,851,952 12,853,463 13,458,819 6,505,170
Finance costs 33 (39,451,799) (29,736,870) (19,000,454) (17,018,053)
Share of net income (loss) of joint ventures and 16 (9,998,680) (4,401,707) (6,179,910) (3,837,066)
associates accounted for using the equity method
Gains (losses) on 33 (11,444,734) (9,836,230) (7,117,365) (11,430,455)
exchange differences
Result as per 33 (5,189,463) (5,072,346) (3,533,385) (1,480,671)
adjustment units
Income before taxes 64,614,753 72,555,412 (12,294,301) (15,415,227)
Income tax 25 (6,652,246) (9,544,229) 8,695,389 8,020,380
(expense) benefit
Net income of period 57,962,507 63,011,183 (3,598,912) (7,394,847)
Net income
attributable to:
Equity holders 54,424,489 54,089,322 (3,943,498) (10,455,142)
of the parent
Non-controlling 29 3,538,018 8,921,861 344,586 3,060,295
interests
Net income of period 57,962,507 63,011,183 (3,598,912) (7,394,847)
Basic earnings per share
(Chilean pesos) from:
Continuing operations 147.29 146.38 (10.67) (28.30)
Diluted earnings per share
(Chilean pesos) from:
Continuing operations 147.29 146.38 (10.67) (28.30)
F-
6
The accompanying notes 1 to 36 are an integral part of these Interim Consolidated Financial Statements.
Compania Cervecerias Unidas S.A. and subsidiaries
Interim Consolidated Statements of Comprehensive Income
(Figures expressed in thousands of Chilean pesos)
INTERIM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
INTERIM CONSOLIDATED STATEMENT Notes For the six-months periods For the three-monts periods
OF COMPREHENSIVE INCOME ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Net income of period 57,962,507 63,011,183 (3,598,912) (7,394,847)
Other comprehensive
income
Components of other comprehensive income (loss) that will
not be reclassified to income for the period, before taxes
Gains (losses) from 28 (1,006,415) (1,286,371) (360,560) (881,979)
defined benefit plans
Other comprehensive income (loss) that will not be (1,006,415) (1,286,371) (360,560) (881,979)
reclassified to income for the period, before taxes
Components of other comprehensive income (loss) that will
be reclassified to income for the period, before taxes
Gains (losses) on exchange 28 (15,151,136) 90,467,842 26,783,200 108,336,601
differences on translation
Gains (losses) on 28 (6,522,617) 2,408,067 (8,370,445) (350,583)
cash flow hedges
Other comprehensive income (loss) that will be (21,673,753) 92,875,909 18,412,755 107,986,018
reclassified to income for the period, before taxes
Other comprehensive (22,680,168) 91,589,538 18,052,195 107,104,039
income (loss), before tax
Income taxes related to components of other comprehensive income
(loss) that will not be reclassified to income for the period
Income tax relating to 28 271,732 346,282 97,351 238,104
defined benefit plans
Income taxes related to components of other comprehensive income 271,732 346,282 97,351 238,104
(loss) that will not be reclassified to income for the period
Income taxes related to components of other comprehensive income
(loss) that will be reclassified to income for the period
Income tax relating 28 1,761,105 (650,178) 2,260,019 94,658
to cash flow hedges
Income taxes related to components of other comprehensive income 1,761,105 (650,178) 2,260,019 94,658
(loss) that will be reclassified to income for the period
Total other comprehensive (20,647,331) 91,285,642 20,409,565 107,436,801
income (loss)
Comprehensive income 37,315,176 154,296,825 16,810,653 100,041,954
Comprehensive income
attributable to:
Equity holders 35,940,334 140,540,203 16,238,599 89,796,784
of the parent
Non-controlling 1,374,842 13,756,622 572,054 10,245,170
interests
Total Comprehensive 37,315,176 154,296,825 16,810,653 100,041,954
income (expense)
F-
7
The accompanying notes 1 to 36 are an integral part of these Interim Consolidated Financial Statements.
Compania Cervecerias Unidas S.A. and subsidiaries
Interim Consolidated Statements of Changes in Equity
(Figures expressed in thousands of Chilean pesos)
INTERIM
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
INTERIM Paid-in capital Other reserves Total other Retained
STATEMENT OF reservations earnings
CHANGES
IN EQUITY
Common Stock Reserve of exchange Reserve of cash Reserve of Actuarial Other reserves
differences on translation flow hedges gains and
losses on defined
benefit plans
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Balanced 562,693,346 (51,745,399) 5,110,606 (5,446,022) (35,175,097) (87,255,912) 832,180,798
as of
January
1, 2022
Changes
Final - - - - - - (48,219,782)
dividends
(1)
Interim - - - - - - (27,044,661)
dividends
according to
policy (3)
Other - - - - - - -
increase
(decrease)
in
Equity (4)
Total - 87,395,821 1,595,253 (892,411) (1,647,782) 86,450,881 54,089,322
comprehensive
income
(loss) (6)
Increase - - - - - - -
(decrease)
for other
contribitions
from
owners (8)
Total - 87,395,821 1,595,253 (892,411) (1,647,782) 86,450,881 (21,175,121)
changes
in equity
AS OF 562,693,346 35,650,422 6,705,859 (6,338,433) (36,822,879) (805,031) 811,005,677
JUNE 30,
2022
(Unaudited)
Balanced 562,693,346 (51,745,399) 5,110,606 (5,446,022) (35,175,097) (87,255,912) 832,180,798
as of
January
1, 2022
Changes
Final - - - - - - (48,219,783)
dividends
(1)
Interim - - - - - - (49,919,838)
dividends
(2)
Interim - - - - - - (9,164,337)
dividends
according to
policy (3)
Other - - - - - - -
increase
(decrease)
in
Equity (4)
Total - 11,706,309 (9,291,567) (4,905,072) (1,068,854) (3,559,184) 118,168,351
comprehensive
income
(loss) (6)
Increase - - - - 102,625 102,625 -
(decrease)
through
changes in
ownership
interests
in
subsidiaries
(7)
Increase - - - - - - -
(decrease)
for other
contribitions
from
owners (8)
Total - 11,706,309 (9,291,567) (4,905,072) (966,229) (3,456,559) 10,864,393
changes
in equity
AS OF 562,693,346 (40,039,090) (4,180,961) (10,351,094) (36,141,326) (90,712,471) 843,045,191
DECEMBER 31,
2022
(Audited)
Balanced 562,693,346 (40,039,090) (4,180,961) (10,351,094) (36,141,326) (90,712,471) 843,045,191
as of
January
1, 2023
Changes
Final - - - - - - (3)
dividends
(1)
Interim - - - - - - (27,212,245)
dividends
according to
policy (3)
Other - - - - - - -
increase
(decrease)
in
Equity (4)
Effects - - - - - - -
business
combination
(5)
Total - (12,896,559) (4,736,387) (688,951) (162,258) (18,484,155) 54,424,489
comprehensive
income
(loss) (6)
Other - - - - (25,800,616) (25,800,616) -
increases
(decreases)
for other
changes (9)
Increase - - - - (908,438) (908,438) -
(decrease)
through
changes in
ownership
interests
in
subsidiaries
(7)
Increase - - - - - - -
(decrease)
for other
contribitions
from
owners (8)
Total - (12,896,559) (4,736,387) (688,951) (26,871,312) (45,193,209) 27,212,241
changes
in equity
AS OF JUNE 562,693,346 (52,935,649) (8,917,348) (11,040,045) (63,012,638) (135,905,680) 870,257,432
30, 2023
(No
auditados)
Equity Non-controlling Total
attributable to interests Shareholders'
equity holders Equity
of the parent
ThCh$ ThCh$ ThCh$
1,307,618,232 117,897,071 1,425,515,303
(48,219,782) - (48,219,782)
(27,044,661) - (27,044,661)
- (10,887,948) (10,887,948)
140,540,203 13,756,622 154,296,825
- 1,648,121 1,648,121
65,275,760 4,516,795 69,792,555
1,372,893,992 122,413,866 1,495,307,858
1,307,618,232 117,897,071 1,425,515,303
(48,219,783) - (48,219,783)
(49,919,838) - (49,919,838)
(9,164,337) - (9,164,337)
- (14,698,083) (14,698,083)
114,609,167 16,636,638 131,245,805
102,625 (540,760) (438,135)
- 1,648,121 1,648,121
7,407,834 3,045,916 10,453,750
1,315,026,066 120,942,987 1,435,969,053
1,315,026,066 120,942,987 1,435,969,053
(3) - (3)
(27,212,245) - (27,212,245)
- (9,902,701) (9,902,701)
- 1,090,587 1,090,587
35,940,334 1,374,842 37,315,176
(25,800,616) - (25,800,616)
(908,438) (2,296,620) (3,205,058)
- 2,768,700 2,768,700
(17,980,968) (6,965,192) (24,946,160)
1,297,045,098 113,977,795 1,411,022,893
(1) Corresponds to the difference between the final dividend and CCU's
policyof distributing a minimum dividend of at least 50% of net income (
Note 28 - Common Shareholders'Equity
).
(2) Corresponds to Interin dividends dividend that was paid on December
29, 2022,as agreed at the Ordinary Board of Directors' Meeting.
(3) Corresponds to the difference between CCU's policy to distribute a minimumdividend of at least 50% of the net income (
Note 28 - Common Shareholders' Equity
)and the dividends declared or paid as of December 31 of each year.
(4) Mainly related to dividends of Non-controlling interest.
(5) See
Note 15 - Business Combinations, lettera)
.
(6) See
Note 28 - Common Shareholders'Equity
.
(7) See
Note 1 - General information, letterC, numbers (3)
for 2022
and (9)
for 2023.
(8) See
Note 1 - General information, letterC, number (5).
(9) See
Note 1 - General information, letterC, number (9)
and
Note 16 - Investments accounted for using equity method, number (3).
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8
The accompanying notes 1 to 36 are an integral part of these Interim Consolidated Financial Statements.
Compania Cervecerias Unidas S.A. and subsidiaries
Interim Consolidated Statements of Cash Flow
(Figures expressed in thousands of Chilean pesos)
INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOW
zINTERIM CONSOLIDATED STATEMENT OF CASH FLOW Notes For the six-months periods
ended as of June 30,
2023 2022
ThCh$ ThCh$
Cash flows from
operating activities
Classes of cash receipts
from operating activities:
Proceeds from goods sold 1,862,467,818 1,693,396,257
and services rendered
Other proceeds from 21,394,826 12,930,103
operating activities
Classes of cash payments
from operating activities:
Payments of operating activities (1,266,789,016) (1,251,029,565)
Payments of salaries (189,206,708) (187,864,502)
Other payments for (253,593,502) (236,199,570)
operating activities
Cash flow from operations 174,273,418 31,232,723
Dividends received 1,239,628 390,396
Interest paid (40,330,899) (14,710,574)
Interest received 23,840,061 14,939,738
Income tax paid (16,179,622) (45,590,850)
Other cash movements 32 4,231,005 12,381,351
Net cash inflows (outflows) 147,073,591 (1,357,216)
from operating activities
Cash flows from
investing activities
Cash flows used to obtain control 8 (2,000,000) -
of subsidiaries or other businesses
Cash flows used to purchase 8 - (27,386,281)
non-controlling interests
Loan to related entities (624,589) -
Charges to related entities 71,381 -
Other payments to acquire 8 (4,176,846) -
interests in joint ventures
Proceeds from sales of 332,818 2,889,174
property, plan and equipment
Purchase of property, (52,162,162) (77,084,585)
plant and equipment
Purchases of intangibles assets (1,334,514) (1,718,901)
Net cash inflows (outflows) (59,893,912) (103,300,593)
from investing activities
Cash flows from
financing activities
Proceeds from changes in ownership interests in 8 (3,205,058) -
subsidiaries that do not result in loss of control
Proceeds from long-term 9,259,335 553,872,520
loans and bonds
Proceeds from short-term 22,662,341 19,088,327
loans and bonds
Total proceeds from 31,921,676 572,960,847
loans and bonds
Loan and bonds payments (44,190,491) (17,807,581)
Proceeds from issuing shares 2,768,700 1,648,121
Payments of lease liabilities (5,863,653) (4,682,314)
Payments of loan - (25,000)
from related parties
Dividends paid (36,305,285) (113,816,528)
Other cash movements 15,004,423 -
Net cash inflows (outflows) (39,869,688) 438,277,545
from financing activities
Net increase in cash 47,309,991 333,619,736
and cash equivalents
Effects of exchange rate changes (53,376,220) 44,811,308
on cash and cash equivalents
Decrease (increase) in (6,066,229) 378,431,044
cash and cash equivalents
Cash and cash equivalents 597,081,675 265,568,125
at beginning of the year
Cash and cash equivalents 8 591,015,446 643,999,169
at end of the period
F-
9
The accompanying notes 1 to 36 are an integral part of these Interim Consolidated Financial Statements.
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note1 General Information
A) Company information
Compania Cervecerias Unidas S.A. (hereinafteralso "CCU", "the Company" or "the
Parent Company") was incorporated in Chile as an open stock company,and is
registered in the Securities Registry of the Comision para el Mercado
Financiero (CMF) under N^o 0007, and consequently,the Company is overseen by
the CMF. The Company's shares are traded in Chile on the Santiago Stock
Exchange and Electronic StockExchange. The Company is also registered with the
United States of America Securities and Exchange Commission (SEC) and its
American DepositaryShares (ADS)'s are traded in the New York Stock Exchange
(NYSE). There was an amendment to the Deposit Agreement dated December3, 2012,
between the Company, JP Morgan Chase Bank, NA and all holders of ADRs, whereby
there was a change in the ADS ratio from 5 commonshares for each ADS to 2
common shares for each AgDS, effective as of December 20, 2012.
Compania Cervecerias Unidas S.A. is a diversifiedbeverage company, with
operations mainly in Chile, Argentina, Uruguay, Paraguay, Colombia and
Bolivia. CCU is the largest Chilean brewer,the second largest brewer in
Argentina, the second largest producer of soft drinks in Chile, the second
largest producer of wines in Chile,the largest producer of bottled water,
nectars, sports drinks and iced tea in Chile and one of the largest producers
of pisco in Chile.It also participates in the Home and Office Delivery ("HOD")
business, a home delivery business of purified water in bottlesthrough the use
of dispensers; in the rum industry, other liquors, recently in ciders in
Chile. It participates in the cider, liquor andwine industry in Argentina. It
also participates in the mineral water, soft drinks, water, nectars and beer
distribution industry in Argentina,Uruguay, Paraguay, Colombia and Bolivia.
Compania Cervecerias Unidas S.A. is under thecontrol of Inversiones y Rentas
S.A. (IRSA), which is the direct and indirect owner of 65.87% of the Company's
shares. IRSA is currentlya joint venture between Quinenco S.A. and Heineken
Chile SpA., a company controlled by Heineken International B.V., each with
a50% equity participation.
The Company's address and main office is located in Santiago,Chile, at Avenida
Vitacura N^o 2670, Las Condes district and its tax identification number (Rut)
is 90,413,000-1.
As of June 30, 2023, the Company had a total 9,145 employees detailedas follows:
Number of employes
Parent company Consolidated
Senior Executives 9 15
Managers and Deputy Managers 87 447
Other workers 307 8,683
Total 403 9,145
The Interim Consolidated Financial Statements include: Statementof Financial
Position, Statement of Income, Statement of Comprehensive Income, Statement of
Changes in Equity, Statement of Cash Flows(direct method), and the
Accompanying Notes with disclosures.
In the accompanying Statement of Financial Position, assets andliabilities
that are classified as current, are those with maturities equal to or less
than twelve months, and those classified as non-current,are those with
maturities greater than twelve months. In turn, in the Consolidated Statement
of Income, expenses are classified by function,and the nature of depreciation
and personnel expenses is identified in footnotes. The Consolidated Statement
of Cash Flows is presentedusing the direct method.
The figures of the Consolidated Statement of Financial Positionand respective
explanatory notes are presented compared with the balances as of December 31,
2022 and the Consolidated Statement of Changesin Shareholders' Equity,
Consolidated Statement of Income by Function, Consolidated Statement of
Comprehensive Income, Consolidated Statementof Cash Flows and respective
explanatory notes are presented compared with balances as of June 30, 2022.
These Interim Consolidated Financial Statements are presented inthousands of
Chilean pesos (ThCh$) and have been prepared from the accounting records of
Compania Cervecerias UnidasS.A. and its subsidiaries. All amounts have been
rounded to thousand Chilean pesos, except when otherwise indicated.
F-
10
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The Company's functional currency and presentation currencyis the Chilean
peso, except for some subsidiaries in Chile, United States, Argentine,
Uruguay, Paraguay, Bolivia and United Kingdom thatuse the US Dollar, Argentine
peso, Uruguayan Peso, Paraguayan guarani, Bolivian and Sterling Pound,
respectively. The functionalcurrency of joint operations in Chile and Colombia
and associates in Argentine and Peru, are the Chilean peso and Colombian
peso,Argentine peso and the Sol, respectively. However they use the Chilean
peso as the presentation currency for consolidation purposes.
Subsidiaries whose functional currencies are not the Chilean pesoand are not a
currency from a country which economy has been classified as hyperinflationary,
have converted their financial statementfrom their functional currency to the
Group's presentation currency, which is the Chilean peso. The following
exchange rates havebeen used: for the Consolidated Statement of Financial
Position and the Consolidated Statement of Changes in Equity, net at the
year-endexchange rate, and for the Consolidated Statements of Income,
Consolidated Statements of Comprehensive Income and the Consolidated
Statementof Cash Flows at the transaction date exchange rate or at the average
monthly exchange rate, as appropriate. For consolidation purposes,the assets
and liabilities of subsidiaries whose functional currency is different from
the Chilean peso, are translated into Chilean pesosusing the exchange rates
prevailing at the date of the Consolidated Financial Statements while the
Gains (losses) on exchange differencescaused by the conversion of assets and
liabilities are recorded in the Conversion Reserves account under Other equity
reserves. Income,costs and expenses are translated at the average monthly
exchange rate for the respective periods. These exchange rates have not
undergonesignificant fluctuations during the year, with the exception of
subsidiaries in hyperinflationary economies. (See
Note2 -Summary of significant accounting policies, (2.4)
).
B) Brands and licensing
In Chile, its portfolio of brands in the beer category consistsof its own CCU
brands, international licensing brands, and distribution of Craft brands.
CCU's own brands correspond to nationalproducts produced, marketed, and
distributed by Cervecera CCU Chile Ltda. which include the following brands
among others; Cristal, Escudo,Royal Guard, Morenita, Dorada, Andes, Bavaria,
and Stones in its Lemon, Maracuya and Red Citrus varieties. The international
licensingbrands are mostly produced while others are imported. All are
marketed and distributed by Cervecera CCU including among others,
Heineken,Sol, Coors, Blue Moon, Birra Moretti and Edelweiss brands. The Craft
brands of beers (Austral, Polar Imperial, Patagonia, Kunstmann, Szot,Guayacan,
D´olbek, Mahina and Volcanes del Sur) are created and mostly produced in
their original breweries and in partnershipwith Cervecera CCU marketed and
distributed by the Company.
In the Chile operating segment, in the non-alcoholic beverage'scategory, CCU
has the Bilz, Pap, Kem, Kem Xtreme, Nobis, Pop, Cachantun, Mas, Mas Woman and
Porvenir brands. In the HOD category, CCUhas the Manantial brand. The Company,
directly or through its subsidiaries, has licensing agreements with Pepsi,
7up, Mirinda, Gatorade,Adrenaline Red, Lipton Ice Tea, Crush, Canada Dry Limon
Soda, Canada Dry Ginger Ale, Canada Dry Agua Tonica, NestlePura Vida, Watt's,
Watt´s Seleccion and Frugo. In Chile, CCU is the exclusive distributor
of the Red Bull energy drink,Rockstar and Perrier water. Through a joint
venture it also has its own brands, Sprim and a license for the Vivo and
Caricia brands.
Additionally, in the Chile operating segment, in the pisco and cocktailscategori
es, CCU owns the Mistral, Tres Erres, Campanario, Horcon Quemado, Control
Valle del Encanto, Espiritu de los Andes,La Serena, Iceberg, Hard Fresh, Ruta
Cocktail, Sabor Andino Sour, Sol de Cuba, brands, together with the respective
line extensions, asapplicable. In the rum category, the Company owns the
Sierra Morena (and their extensions) and Cabo Viejo brands. In the liquor
category,the Company has the Kantal, Fehrenberg and Barsol brands and is the
exclusive distributor in Chile of Pernod Ricard brands in the traditionalchannel
and exclusive distributor in Chile of Fratelli Branca brands for all
channels. Finally, in the cider category, the Company ownsthe Cygan and
distributes the Villa Pehuenia brand and Sidra 1888.
On August 8th 2019 CCU announced that itssubsidiary Compania Pisquera de Chile
S.A. ("CPCh") acting through out Inversiones Internacionales SpA.
andInternational Spirits Investments USA LLC, have communicated to LDLM
Investment LLC their decision to initiate the sell of its whole participationin
Americas Distilling Investment LLC ("ADI") which amount to 40%. ADI is the
owner of the Peruvian Company Bodega San IsidroS.R.L. and the Barsol brand.
That sales process initiated by CPCh did not take place, because the terms and
conditions described in theoffers presented by the interested parties were not
feasible or satisfactory.
On January 2023, CPCh materialized the acquisition of D&D SpA.(see
Note 1 - General information, letter C, number (11)
), adding La Pizka to its portfolioof brands.
In Argentina, CCU produces beer in itsplants located in Salta, Santa Fe and
Lujan. Its main brands are Schneider, Imperial, Palermo, Santa Fe, Salta,
Cordoba,Isenbeck, Norte and Iguana. At the same time, it is the holder of
exclusive license for the production and marketing of Miller GenuineDraft,
Heineken, Amstel, Sol, Warsteiner and Grolsch. CCU also imports Kunstmann and
Blue Moon brands, and exports beer to different countries,mainly under the
Schneider, Heineken and Imperial brands. Besides, participates in the cider
business, marketing the leading market brands"Sidra Real", "La Victoria"
F-
11
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
and "1888" in addition to thePehuenia brand. Also participates in the spirits
business, which are market under El Abuelo brand, in addition to importing
pisco fromChile. Its wine portfolio include the sale and distribution of the
Eugenio Bustos and La Celia brands and since June 2019 has incorporatedto its
wine portfolio Colon, Graffina and Santa Silvia brands belonging to Finca La
Celia (subsidiary in Argentina of the Chileansubsidiary Vina San Pedro de
Tarapaca S.A. ("VSPT")).
With the acquisition of the shareholdings in Aguas de Origen S.A.and Aguas
Danone de Argentina S.A., during 2022, CCU entered the spring water, mineral
water and saborized water business, participatingwith the brands Villavicencio,
Villa del Sur, Levite, Ser and Brio.
In the Wine Operating Segment, CCU through its subsidiary VSPT hasan extensive
portfolio of wine brands produced by the eight wineries that make up the
group. Among them are: Altair, Cabo de Hornos,Sideral, 1865, Castillo de
Molina, Epica, Gato (in domestic market) and GatoNegro (in export market) from
Vina San Pedro, the Reservaand Gran Reserva lines of Vina Tarapaca and its
Blue and Black labels; Vina Leyda in its Reserva, Single Vineyardand Lot
series; Misiones de Rengo Varietal, Reserva, Cuvee, Gran Reserva Black,
Mision, and its Sparkling line; in addition toAlpaca, Reservado and Siglo de
Oro Reserva de Vina Santa Helena; and in the sparkling category, Vinamar in
its expressionsTraditional Method, Extra Brut, Rose, Moscato, Brut, Unique
Brut, Unique Moscato, ICE and Zero Dealcoholized, and, finally, Manquehuitoin
the coolers category. In Argentina, the brands La Celia, Graffigna, Colon and
Colon Selecto.
In Uruguay, the Company participates in the mineral water businesswith the
Nativa and Nix brands, soft drinks with the Nix brand and nectars with Watt's
brand, in isotonic drinks with the FullSport brands.In addition, it sells
imported beer under the Heineken, Schneider, Imperial, Escudo Silver,
Kuntsmann, Miller, and Amstel. Recently thewine category, it participates with
the brands with Misiones de Rengo, Eugenio Bustos and La Celia brands all
imported.
In Paraguay, the Company participates in the non-alcoholic and alcoholicdrinks
business. Its portfolio of non-alcoholic brands consists of Pulp, Watt's, Puro
Sol, La Fuente and the FullSport isotonic drinks.These brands include our own
licensed and imported brands. The Company in the alcoholic drinks business is
the owner of Sajonia beer brandand imports Heineken, Amstel, Paulaner, Sol,
Blue Moon and Schin brands. Since January 2020, they opened a wine category
with brands Misionesde Rengo and La Celia.
In Bolivia, as of May 2014, CCU participates in the non-alcoholicand alcoholic
beverages business through its subsidiary Bebidas Bolivianas BBO S.A. (BBO).
Within the portfolio of non-alcoholic beverages,BBO has the Mendocina,
Sinalco, Real and De la Sierra. These brands include their own and licensed
brands. On the other hand, the alcoholicbeverages include Real, Capital,
Cordillera and Uyuni brands. Aditionally, BBO markets the imported beer
Heineken brands.
Since November 2014 in Colombia, CCU participated in the beer businessthrough
its joint venture with Central Cervecera de Colombia S.A.S. (CCC). CCC has an
exclusive licensing contract for importing, distributing,and producing
Heineken beer in Colombia. In October 2015, Coors and Coors Light brands were
incorporated into CCC's brand portfoliothrough licensing contracts for the
production and/or marketing of them. This licence was extended only until
December 2019. As of December2015, Artesanos de Cerveza's company was acquired
together with its Brand "Tres Cordilleras". As of April and July of2016, the
Tecate and Sol brands were incorporated respectively with a licensing contract
to produce and/or market them. During April 2017,the Miller and Miller Genuine
Draft (MGD) brands were incorporated with a licensing contract to produce and
market them. As of February2019, the local Andina brand was launched. As of
July 2019, the local production of the Tecate brand began and the launch of
Natu Malta(alcohol-free product based on malt) was made. Furthermore, since
October 2019, Colombia started to import and market the Kunstmann
brand.Finally at the end of 2019, CCC started with the local production of
Heineken beer. In October 2021, the local production of the Sol brandbegan.
F-
12
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The described licenses are detailed as follows:
Main brands under license
Licenses Validity Date
Aberlour, Absolut, Ballantine's, Beefeater, Blender´s Pride, Borzoi, Chivas Reagal, June 2027
Cuvee MUMM, Dubonnet, Elyx, G.H. MUMM, Havana Club, Jameson, Kahlua, Level, Long John,
Longmorn, Malibu, Martell, Olmeca, Orloff, Passport, Pernod, Perrier Jouet, Ricard, Royale
Salute, Sandeman, Scapa, Strathisla, The Glenlivet, Wyborowa, 100 Pipers, in Chile (1)
Amstel in Argentina (2) 10 years renewables
Amstel in Uruguay (17) In process
Amstel in Paraguay (1) September 2024
Austral in Chile (4) July 2024
Blue Moon in Chile (5) December 2025
Blue Moon in Paraguay (17) In process
Coors in Chile (6) December 2025
Crush, Canada Dry (Ginger Ale, Agua December 2023
Tonica and Limon Soda) in Chile (7)
Fernet Branca, Brancamenta, Punt E Mes, December 2024
Borghetti, Carpano Rosso and Carpano Bianco
Frugo in Chile Indefinitely
Gatorade in Chile (8) December 2043
Grolsch in Argentina May 2028
Heineken in Bolivia (9) December 2024
Heineken in Chile and Argentina (10) 10 years renewables
Heineken in Colombia (11) March 2028
Heineken in Paraguay (1) May 2026
Heineken in Uruguay (10) 10 years renewables
Mas in Uruguay (16) December 2028
Kunstmann in Colombia (1) July 2025
Miller in Argentina (11) December 2026
Miller Lite and Miller Genuine Draft in Colombia (14) December 2026
Miller in Uruguay (7) July 2026
Nestle Pure Life in Chile (7) December 2027
Paulaner in Paraguay April 2025
Patagonia in Chile Indefinitely
Pepsi, Seven Up and Mirinda in Chile December 2043
Polar Imperial in Chile Indefinitely
Red Bull in Chile (12) Indefinitely
Rockstar in Chile (18) December 2043
Sol in Argentina (10) 10 years renewables
Sol in Chile (10) 10 years renewables
Sol in Colombia (3) March 2028
Sol in Paraguay (1) January 2026
Te Lipton in Chile December 2030
Tecate in Colombia (3) March 2028
Warsteiner in Argentina (15) May, 2028
Watt´s in Uruguay 99 years
Watt's (nectars, fruit-based drinks and other) Indefinitely
rigid packaging, except carton in Chile
Watt's in Paraguay (13) July 2026
F-
13
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
(1)
Renewable for successive periods of 3 years.
(2)
After the initial termination date, license is automatically renewed under the
same conditions (RollingContract), each year for a period of 10 years, unless
notice of non-renewal is given.
(3)
The contract will remain in effect as long as the Heineken license agreeemente
for Colombia remainsin force.
(4)
Renewable for periods of two years, subject to the compliance of the contract
conditions
(5)
If Renewal criteria have benn satisfied, renewable through December, 2025,
thereafter shall automaticallyrenew every year for a new term of 5 years
(Rolling Contract).
(6)
After the initial termination date, license is automatically renewed under the
same conditions (RollingContract), each year for a period of 5 years, subject
to the compliance of the contract conditions.
(7)
License renewable for periods of 5 years, subject to the compliance of the
contract conditions.
(8)
License was renewed for a period equal to the duration of the Shareholders
Agreement of BebidasCCU-PepsiCo SpA.
(9)
License for 10 years, automatically renewable for periods of 5 years, unless
notice of non-renewal.
(10)
License for 10 years, automatically renewable on the same terms (Rolling
Contract), each year fora period of 10 years, unless notice of non-renewal is
given.
(11)
After the initial termination date, License is automatically renewable each
year for a period of5 years (Rolling Contract), unless notice of non-renewal
is given.
(12)
Indefinite contract, notice of termination 6 months in advance.
(13)
Sub-license is renewed automatically and successively for two periods of 5
years each, subject tothe terms and conditions stipulated in the International
Sub-license agreement of December 28, 2018 between Promarca Internacional
ParaguayS.R.L. and Bebidas del Paraguay S.A.
(14)
License renewable for one period of 5 years, subject to the compliance of the
contract conditions.
(15)
Prior to the expiration of the term, the parties will negotiate its renewal
for another 5 years.
(16)
Renewable contract for successive periods of 10 years.
(17)
Distribution started; distribution contract under negotiation.
(18)
As long as the shareholders Agreement of Bebidas CCU-PepsiCo SpA. is in force.
F-
14
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
C) Direct and indirect significant subsidiaries
The consolidated financial statements include the following directand indirect
subsidiaries where the percentage of participation represents the economic
interest at a consolidated level:
Subsidiary Tax ID Country of origin Functional currency Share percentage
direct and indirect
As of June 30, 2023 As of December 31, 2022
Direct % Indirect % Total % Total %
Aguas CCU-Nestle 76,007,212-5 Chile Chilean Pesos - 50.0917 50.0917 50.0917
Chile S.A.
Cervecera Guayacan 76,035,409-0 Chile Chilean Pesos - 25.0006 25.0006 25.0006
SpA. (**)
CRECCU S.A. (12) 76,041,227-9 Chile Chilean Pesos 99.9602 0.0398 100.0000 100.0000
Cerveceria Belga de la 76,077,848-6 Chile Chilean Pesos - 25.5034 25.5034 25.5034
Patagonia S.A. (**)
Inversiones Invex 76,126,311-0 Chile Chilean Pesos 99.8516 0.1484 100.0000 100.0000
CCU Dos Ltda.
Bebidas CCU-PepsiCo 76,337,371-1 Chile Chilean Pesos - 49.9888 49.9888 49.9888
SpA. (**)
CCU Inversiones 76,349,531-0 Chile US Dollar 99.9547 0.0453 100.0000 100.0000
II SpA. (1)
Cerveceria 76,481,675-7 Chile Chilean Pesos - 25.0006 25.0006 25.0006
Szot SpA. (**)
Bebidas Carozzi 76,497,609-6 Chile Chilean Pesos - 49.9917 49.9917 49.9917
CCU SpA. (**)
Bebidas 76,517,798-7 Chile Chilean Pesos - 99.9834 99.9834 99.9834
Ecusa SpA.
Inversiones Invex 76,572,360-4 Chile US Dollar 66.6519 33.3406 99.9925 99.9922
CCU Ltda. (2)
Promarca Internacional 76,574,762-7 Chile US Dollar - 49.9917 49.9917 49.9917
SpA. (**)
CCU Inversiones 76,593,550-4 Chile Chilean Pesos 99.0242 0.9533 99.9775 99.9775
S.A. (3)
Inversiones 76,688,727-9 Chile US Dollar - 80.0000 80.0000 80.0000
Internacionales SpA.
Promarca 76,736,010-K Chile Chilean Pesos - 49.9917 49.9917 49.9917
S.A. (**)
D&D SpA. 76,920,876-3 Chile Chilean Pesos - 40.8105 40.8105 -
(11) (**)
La Barra 77,148,606-1 Chile Chilean Pesos 99.0000 1.0000 100.0000 100.0000
S.A. (8)
Mahina SpA. (**) 77,248,551-4 Chile Chilean Pesos - 25.0458 25.0458 25.0458
Volcanes del 77,622,887-7 Chile Chilean Pesos - 74.9503 74.9503 74.9503
Sur S.A. (7)
Transportes 79,862,750-3 Chile Chilean Pesos 98.0000 2.0000 100.0000 100.0000
CCU Ltda.
Fabrica de Envases 86,150,200-7 Chile Chilean Pesos 95.8904 4.1080 99.9984 99.9984
Plasticos S.A.
Millahue S.A. 91,022,000-4 Chile Chilean Pesos 99.9621 - 99.9621 99.9621
Vina San Pedro 91,041,000-8 Chile Chilean Pesos - 84.6824 84.6824 84.6824
Tarapaca S.A. (*) (3)
Manantial S.A. 96,711,590-8 Chile Chilean Pesos - 50.5519 50.5519 50.5519
Vina Altair SpA. 96,969,180-9 Chile Chilean Pesos - 84.6824 84.6824 84.6824
Cerveceria 96,981,310-6 Chile Chilean Pesos 50.0007 - 50.0007 50.0007
Kunstmann S.A.
Cervecera CCU 96,989,120-4 Chile Chilean Pesos 99.8064 0.1935 99.9999 99.9999
Chile Ltda. (6)
Embotelladoras 99,501,760-1 Chile Chilean Pesos 98.8000 1.1834 99.9834 99.9834
Chilenas Unidas S.A.
Comercial 99,554,560-8 Chile Chilean Pesos 50.0000 49.9888 99.9888 99.9888
CCU S.A.
Compania Pisquera 99,586,280-8 Chile Chilean Pesos 46.0000 34.0000 80.0000 80.0000
de Chile S.A.
Cia. Cervecerias 0-E Argentina Argentine Pesos - 99.9939 99.9939 99.9937
Unidas Argentina S.A.
Compania Industrial 0-E Argentina Argentine Pesos - 99.9952 99.9952 99.9950
Cervecera S.A.
Finca La 0-E Argentina Argentine Pesos - 84.6824 84.6824 84.6824
Celia S.A.
Los Huemules 0-E Argentina Argentine Pesos - 74.9980 74.9980 74.9979
S.R.L.
Saenz Briones y 0-E Argentina Argentine Pesos - - - 99.9369
Cia. S.A.I.C. (13)
Bebidas Bolivianas 0-E Bolivia Bolivians - 51.0000 51.0000 51.0000
BBO S.A. (5)
VSPT Winegroup 0-E China US Dollar - 84.6824 84.6824 84.6824
(Shanghai) Limited (10)
International Spirits 0-E United States US Dollar - 80.0000 80.0000 80.0000
Investments USA LLC
VSPT US LLC 0-E United States US Dollar - 84.6824 84.6824 84.6824
VSPT UK Ltd. (4) 0-E United Kingdom Sterling Pound - 84.6824 84.6824 84.6824
Bebidas del 0-E Paraguay Paraguayan - 55.0070 55.0070 50.0050
Paraguay S.A. (9) Guaranies
Distribuidora del 0-E Paraguay Paraguayan - 54.9640 54.9640 49.9590
Paraguay S.A. (9) Guaranies
Promarca Internacional 0-E Paraguay Paraguayan - 49.9917 49.9917 49.9917
Paraguay S.R.L. (**) Guaranies
Sajonia Brewing 0-E Paraguay Paraguayan - 54.4569 54.4569 49.5049
Company S.R.L. Guaranies
Andrimar S.A. 0-E Uruguay Uruguayan Pesos - 100.0000 100.0000 100.0000
Coralina S.A. 0-E Uruguay Uruguayan Pesos - 100.0000 100.0000 100.0000
Marzurel S.A. 0-E Uruguay Uruguayan Pesos - 100.0000 100.0000 100.0000
Milotur S.A. 0-E Uruguay Uruguayan Pesos - 100.0000 100.0000 100.0000
(*)
Listedcompany in Chile.
(**) Subsidiaries in which we have an interest of more or equalthan 50%
through one or more subsidiaries of the Company.
F-
15
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
In addition to what is shown in the preceding table, the followingare the
percentages of participation with voting rights, in each of the subsidiaries.
Each shareholder has one vote per share owned orrepresented. The percentage of
participation with voting rights represents the sum of the direct
participation and indirect participationthrough a subsidiary.
Subsidiary Tax ID Country of origin Functional currency Share percentage
with voting rights
As of June 30, 2023 As of December 31, 2022
% %
Aguas CCU-Nestle 76,007,212-5 Chile Chilean Pesos 50.0917 50.0917
Chile S.A.
Cervecera Guayacan 76,035,409-0 Chile Chilean Pesos 25.0006 25.0006
SpA. (**)
CRECCU S.A. (12) 76,041,227-9 Chile Chilean Pesos 100.0000 100.0000
Cerveceria Belga de la 76,077,848-6 Chile Chilean Pesos 25.5034 25.5034
Patagonia S.A. (**)
Inversiones Invex 76,126,311-0 Chile Chilean Pesos 100.0000 100.0000
CCU Dos Ltda.
Bebidas CCU-PepsiCo 76,337,371-1 Chile Chilean Pesos 49.9888 49.9888
SpA. (**)
CCU Inversiones 76,349,531-0 Chile US Dollar 100.0000 100.0000
II SpA. (1)
Cerveceria 76,481,675-7 Chile Chilean Pesos 25.0006 25.0006
Szot SpA. (**)
Bebidas Carozzi 76,497,609-6 Chile Chilean Pesos 49.9917 49.9917
CCU SpA. (**)
Bebidas Ecusa SpA. 76,517,798-7 Chile Chilean Pesos 99.9834 99.9834
Inversiones Invex 76,572,360-4 Chile US Dollar 99.9925 99.9922
CCU Ltda. (2)
Promarca Internacional 76,574,762-7 Chile US Dollar 49.9917 49.9917
SpA. (**)
CCU Inversiones 76,593,550-4 Chile Chilean Pesos 99.9775 99.9775
S.A. (3)
Inversiones 76,688,727-9 Chile US Dollar 80.0000 80.0000
Internacionales SpA.
Promarca S.A. (**) 76,736,010-K Chile Chilean Pesos 49.9917 49.9917
D&D SpA. (11) (**) 76,920,876-3 Chile Chilean Pesos 40.8105 -
La Barra S.A. (8) 77,148,606-1 Chile Chilean Pesos 100.0000 100.0000
Mahina SpA. (**) 77,248,551-4 Chile Chilean Pesos 25.0458 25.0458
Volcanes del 77,622,887-7 Chile Chilean Pesos 74.9503 74.9503
Sur S.A. (7)
Transportes CCU Ltda. 79,862,750-3 Chile Chilean Pesos 100.0000 100.0000
Fabrica de Envases 86,150,200-7 Chile Chilean Pesos 100.0000 100.0000
Plasticos S.A.
Millahue S.A. 91,022,000-4 Chile Chilean Pesos 99.9621 99.9621
Vina San Pedro 91,041,000-8 Chile Chilean Pesos 84.6824 84.6824
Tarapaca S.A. (*) (3)
Manantial S.A. 96,711,590-8 Chile Chilean Pesos 50.5519 50.5519
Vina Altair SpA. 96,969,180-9 Chile Chilean Pesos 84.6824 84.6824
Cerveceria 96,981,310-6 Chile Chilean Pesos 50.0007 50.0007
Kunstmann S.A.
Cervecera CCU 96,989,120-4 Chile Chilean Pesos 100.0000 100.0000
Chile Ltda. (6)
Embotelladoras 99,501,760-1 Chile Chilean Pesos 99.9834 99.9834
Chilenas Unidas S.A.
Comercial CCU S.A. 99,554,560-8 Chile Chilean Pesos 100.0000 100.0000
Compania Pisquera 99,586,280-8 Chile Chilean Pesos 80.0000 80.0000
de Chile S.A.
Cia. Cervecerias 0-E Argentina Argentine Pesos 100.0000 100.0000
Unidas Argentina S.A.
Compania Industrial 0-E Argentina Argentine Pesos 100.0000 100.0000
Cervecera S.A.
Finca La Celia S.A. 0-E Argentina Argentine Pesos 84.6824 84.6824
Los Huemules S.R.L. 0-E Argentina Argentine Pesos 74.9980 74.9979
Saenz Briones y 0-E Argentina Argentine Pesos - 100.0000
Cia. S.A.I.C. (13)
Bebidas Bolivianas 0-E Bolivia Bolivians 51.0000 51.0000
BBO S.A. (5)
VSPT Winegroup 0-E China US Dollar 84.6824 84.6824
(Shanghai) Limited (10)
International Spirits 0-E United States US Dollar 80.0000 80.0000
Investments USA LLC
VSPT US LLC 0-E United States US Dollar 84.6824 84.6824
VSPT UK Ltd. (4) 0-E United Kingdom Sterling Pound 84.6824 84.6824
Bebidas del 0-E Paraguay Paraguayan Guaranies 55.0070 50.0050
Paraguay S.A. (9)
Distribuidora del 0-E Paraguay Paraguayan Guaranies 54.9640 49.9590
Paraguay S.A. (9)
Promarca Internacional 0-E Paraguay Paraguayan Guaranies 49.9917 49.9917
Paraguay S.R.L. (**)
Sajonia Brewing 0-E Paraguay Paraguayan Guaranies 54.4569 49.5049
Company S.R.L.
Andrimar S.A. 0-E Uruguay Uruguayan Pesos 100.0000 100.0000
Coralina S.A. 0-E Uruguay Uruguayan Pesos 100.0000 100.0000
Marzurel S.A. 0-E Uruguay Uruguayan Pesos 100.0000 100.0000
Milotur S.A. 0-E Uruguay Uruguayan Pesos 100.0000 100.0000
(*)
Listedcompany in Chile.
(**) Subsidiaries in which we have an interest of more or equalthan 50%
through one or more subsidiaries of the Company.
F-
16
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The main movements in the ownership of the subsidiaries includedin these
Interim consolidated financial statements are the following:
(1) CCU Inversiones II SpA.
Since the dissolution of Inversiones Invex CCU Tres Ltda. on July1, 2022, CCU
Inversiones II SpA.'s shareholders, corresponding to CCU S.A. and CCU
Inversiones S.A., have a participation of 99.9511%and 0.0489%, respectively.
On December 12, 2022, the Company made a capital contribution tothe subsidiary
CCU Inversiones II SpA. in the amount of USD 17,000,000 (equivalent to ThCh$
14,645,670), resulting in a participationof 99.9539% for CCU S.A. and 0.0461%
for CCU Inversiones S.A.
The latter did notgenerate effects at the CCU S.A. consolidated level.
On February 28, 2023, the Company made a capital contribution toits subsidiary
CCU Inversiones II SpA. by an amount of USD 4,000,000 (equivalent to ThCh$
3,324,960), in which the Company ended witha 99.9545% interest and CCU
Inversiones S.A. ended with a 0.0455% interest.
Thelatter did not generate effects at the CCU S.A. consolidated level.
On May 9, 2023, the Company made a capital contribution to the subsidiaryCCU
Inversiones II SpA. for an amount of USD 1,500,000 (equivalent to ThCh$
1,190,145), in which the Company reached a 99.9547% interest and CCU
Inversiones S.A. reached a 0.0453%interest.
The latter did not generate effects at the CCU S.A. consolidated level.
(2)
Inversiones Invex CCU Ltda.
Following the dissolution of Inversiones Invex CCU Tres Ltda. onJuly 1, 2022,
the shareholders of Inversiones Invex CCU Ltda. reached the following
participations: CCU S.A. with 65.1854% and CCU InversionesS.A. with 34.8086%.
On May 25, 2023, the Company made a capital contribution to thesubsidiary
Inversiones Invex CCU Ltda. in the amount of USD 8,150,000 (equivalent to
ThCh$ 6,593,595), in which the Company reached a66.6519% interest and CCU
Inversiones S.A. reached a 33.3481% interest. The latter did not generate
effects at the CCU S.A. consolidatedlevel.
(3) CCU Inversiones S.A. and VinaSan Pedro Tarapaca S.A.
On September 7, 2022, the subsidiary CCU Inversiones S.A. acquiredan
additional 0.1856% of the subsidiary Vina San Pedro Tarapaca S.A. for ThCh$
438,105, equivalent to 74,000,000 shares,reaching a direct participation of
84.7015% (indirect interest of 84.6824%), which generated an effect on the
Company's equity ofThCh$ 102,625.
(4) VSPT UK Ltd.
On June 1,2022 the company VSPT UK Ltd. was incorporated in United Kingdom,
whose corporate purpose is the commercialization of wines. On June 1,2022 the
capital of the company was paid in, which amounts to 1 (equivalent to Ch$
1,135.30).
On November28, 2022, a capital increase was made for an amount of 417,399
(equivalent to ThCh$ 431,444).
(5) Bebidas Bolivianas BBO S.A.
On April 26 and June 13, 2022, the subsidiary CCU Inversiones IISpA. made
capital contributions to Bebidas Bolivianas BBO S.A. in the amount of USD
1,019,971 and USD 1,019,971 (equivalent to ThCh$ 867,771and ThCh$ 950,695)
respectively, since both partners participated in proportion to the current
shareholding, the percentages of participationwere maintained.
On January 25, 2023, the subsidiary CCU Inversiones II SpA. madea capital
contribution to Bebidas Bolivianas BBO S.A. for USD 1,784,914 (equivalent to
ThCh$ 1,437,659), since both partners contributedin proportion to the current
shareholding, the percentages of participation were unchanged.
On May 25, 2023, the subsidiary CCU Inversiones II SpA. made a capitalcontributi
on to Bebidas Bolivianas BBO S.A. for USD 1,784,914 (equivalent to ThCh$
1,444,049), since both partners contributed in proportionto the current
shareholding, the percentages of participation were unchanged.
F-
17
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
(6) Cervecera CCU Chile Ltda.
On August 16, 2022, the Company made a capital increase to the subsidiaryCervece
ra CCU Chile Ltda. in the amount of ThCh$ 6,750,000. As only CCU participated
in this capital increase, the participation in CerveceraCCU Chile Ltda. is
99.8064% for CCU and 0.1935% for Millahue S.A. The latter did not generate
effects at the CCU S.A. consolidated level.
(7) Volcanes del Sur S.A.
On August 24, 2022, the subsidiaries Cerveceria KunstmannS.A. and Cervecera
CCU Chile Ltda. jointly acquired brands of Volcanes del Sur S.A. for ThCh$
12,950,000. This transaction generated adirect participation in Volcanes del
Sur S.A. of 50.1% for Cerveceria Kunstmann S.A. and 49.9% for Cervecera CCU
Chile Ltda
.
(8) La Barra S.A.
At the Extraordinary Shareholders' Meeting of La Barra S.A., heldon September
2, 2022, it was approved to carry out a capital increase for a total of ThCh$
4,500,000, equivalent to 4,500,000,000 shares.The Company and the subsidiary
Cervecera CCU Chile Ltda. will materialize this capital increase according to
their percentage of participation(99% and 1%, respectively). The effective
payment date was October 7, 2022. The latter did not generate effects at the
CCU S.A. consolidatedlevel.
(9) Bebidas del Paraguay S.A. and Distribuidoradel Paraguay S.A.
On January 26, 2023, the Office of Foreign Assets Control (OFAC)of the United
States Department of the Treasury announced sanctions against Mr. Horacio
Cartes Jara, as of that date, shareholder of oursubsidiaries Bebidas del
Paraguay S.A. and Distribuidora del Paraguay S.A. (the "Companies in
Paraguay").
On March 1, 2023, Compania Cervecerias UnidasS.A. through its subsidiary CCU
Inversiones II SpA. signed a Private Agreement with the shareholders of the
Companies in Paraguay, agreeingto:
i. The acquisition of all of the shares held by Ms. Sarah Cartes Jara in the Companies in Paraguay,
whichpurchase and sale took place on March 1, 2023, for a total amount of USD 4,001,920 (equivalent to ThCh$
3,205,058), and CCU S.A. becamethe holder of a 55.0070% and 54.9640% of Bebidas del Paraguay S.A. and
Distribuidora del Paraguay S.A. (generating an equity effect ofThCh$ 908,438), respectively; and
ii. The acquisition by an unrelated third party of Mr. Cartes of all the
shares owned by him, within the maximumterm that expired on March 17
and subject to CCU agreeing with this third party certain amendments
to the current shareholders' agreementsof the Companies in Paraguay.
On March 16, 2023 having met the conditions set forth in the PrivateAgreement,
Sudameris Bank S.A.E.C.A. acquired all of Mr. Horacio Cartes Jara
participation in the Companies in Paraguay, signing withCCU the respective
Shareholders' Agreements, which include corporate governance clauses and other
usual clauses for this type of contract,and a Put and Call Option Agreement,
for a total of USD 32,651,973 (present value of USD 31,745,078, equivalent to
ThCh$ 25,949,059 atthe date of signing the agreement and USD 32,008,600,
equivalent to ThCh$ 25,660,014 as of June 30, 2023), with respect to the
Companiesin Paraguay. The options can be exercised by the parties at the
beginning of 2024.
As a result, currently the only shareholders of the Companies inParaguay are
CCU, through its subsidiary CCU Inversiones II SpA., and Sudameris Bank
S.A.E.C.A.
(10) VSPT Winegroup (Shanghai) Limited
On December 5, 2022, VSPT Winegroup (Shanghai) Limited was incorporatedin
China for the purpose of commercializing wine. The committed capital of the
company amounts USD 500,000 (equivalent to ThCh$ 400,830as of June 30, 2023).
(11) D&D SpA.
On January 20, 2023, the subsidiary Compania Pisquerade Chile S.A. completed
the acquisition of a 51.0132% interest in D&D SpA. (company owner of, among
other assets, the Pizka brand),a joint stock company engaged in the frozen
cocktail business, whose main product is packaged pisco sour. Its main
products are manufacturedin the production plant located in the district of
Quilicura, in the city of Santiago, Chile.
F-
18
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
For this business combination, the provisional fair values of assetsand
liabilities were determined as follows:
Assets and Liabilities Fair Value
ThCh$
Total current assets 992,511
Total non-current assets 2,597,635
Total Assets 3,590,146
Total current liabilities 727,196
Total non-current liabilities 636,956
Total Liabilities 1,364,152
Net identifiable assets acquired 2,225,994
Non-controlling interests (1,090,587)
Goodwill 1,657,419
Investment value 2,792,826
As a result of the fair values indicated above, intangible assetsand goodwill
have been generated, which are disclosed in
Note 17 - Intangible assets other than goodwill
and
Note 18 - Goodwill
,
respectively.
(12) CRECCU S.A.
On January 9, 2023, at the Extraordinary Shareholders' Meeting ofthe
subsidiary CRECCU S.A., it was agreed to reduce capital by ThCh$ 1,500,000,
which will be returned to the shareholders, this is, tothe Company and the
subsidiary CCU Inversiones S.A. in proportion to their participation.
(13) Saenz Briones y Cia. S.A.I.C.
On April 3, 2023, the Board of Directors of CompaniaIndustrial Cervecera S.A.
approved a corporate reorganization process between Compania Industrial
Cervecera S.A. and SaenzBriones y Compania S.A.I.C., defining an effective
date for the merger of these companies as of May 1, 2023. This did nothave a
significant impact on the consolidated financial statements.
Joint operations:
The joint arrangements that qualify as joint operations are as follows:
(a)
PromarcaS.A.
Promarca S.A. is a closed stock company whose main activity is theacquisition,
development and administration of trademarks and their corresponding licensing
to their operators.
On June 30, 2023, Promarca S.A. recorded a profit of ThCh$ 3,527,770(ThCh$
3,737,549 as of June 30, 2022) which in accordance with the Company's policies
is 100% distributable.
(b)
BebidasCCU-Pepsico SpA
. ("BCP")
The line of business of this company is manufacture, produce, process,transform,
transport, import, export, purchase, sell and in general market all types of
concentrates.
On June 30, 2023, BCP recorded a profit of ThCh$ 3,186,611 (ThCh$2,375,867 as
of June 30, 2022) which in accordance with the Company's policies is 100%
distributable.
(c)
BebidasCarozzi CCU SpA
. ("BCCCU")
The purpose of this company is the production, marketing and distributionof
instant powder drinks in the national territory.
As of June 30, 2023, BCCCU recorded a loss of ThCh$ 534,779 (ThCh$99,588 as of
June 30, 2022).
F-
19
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The companies mentioned above, meet the conditions stipulated inIFRS 11 to be
considered "joint operations", since the primary assets in both entities are
trademarks, the contractual arrangementsestablishes that the parties to the
joint arrangement share all interests in the assets relating to the
arrangement in a specified proportionand their income is 100% from royalties
charged to the joint operators for the sale of products using these trademarks.
Note2
Summary ofsignificant accounting policies
Significant accounting policies adopted for the preparation of theseInterim
Consolidated Financial Statements are described below:
2.1 Basis of preparation
The accompanying interim consolidated financial statements havebeen prepared
in accordance with International Financial Reporting Standards (IFRS), issued
by the International Accounting Standard Board(IASB).
The Interim
Consolidated Financial Statements
have been prepared on a historical costbasis, except for the following:
certain financial assets and liabilities (including derivative instruments) -
measured at fairvalue, and assets held for sale - measured at the lower of
carrying amount and fair value less costs to sell.
The preparation of the Interim Consolidated Financial Statementsin accordance
with IFRS requires the use of certain critical accounting estimates. It also
requires that management uses its professionaljudgment in the process of
applying the Company's accounting policies. See
Note 3 - Estimatesand application of professional judgment
for disclosure of significant accounting estimates and judgments. At the
dateof issuance of these Interim Consolidated Financial Statements, new
Standards, Improvements, Amendments and Interpretations to existingstandards
have been issued, although these have not yet become effective, and the
Company has not adopted in advance or applied wheneverapplicable.
The application of the new accounting pronouncements as of January1, 2023, had
no significant effect on the Company's Consolidated Financial Statements.
The following are the New Standards, Improvements, Amendments andInterpretations
, mandatory as of the dates indicated:
Next Standard Improvements and Amendments Mandatory for years beginning in:
Amendments to IAS 1 Presentation of financial statements and accounting January 1, 2024
policies, classification and liquidation
of current and non-current liabilities
(non-current liabilities with covenants).
Amendments to IAS 7 - IFRS 17 Information to be disclosed on January 1, 2024
supplier financing agreements.
Amendments to IFRS 16 Sale and leaseback leases. January 1, 2024
The Company estimates the adoption of these new Standards, Improvements,Amendmen
ts and Interpretations mentioned in the table above will not have a material
impact on the Consolidated Financial Statements.
2.2 Basis of consolidation
Subsidiaries
Subsidiaries are entities over which the Company has power to directtheir
financial and operating policies, which generally is the result of ownership
of more than half of the voting rights. When assessingwhether the Company
controls another entity, the existence and effect of potential voting rights
that are currently liable to be exercisedat the date of the Interim
Consolidated Financial Statements is considered. Subsidiaries are consolidated
from the date on which controlwas obtained by the Company, and are excluded
from consolidation as of the date the Company loses such control.
The acquisition method is used for the accounting of acquisitionof
subsidiaries. The acquisition cost is the fair value of the assets delivered,
of the equity instruments issued and of the liabilitiesincurred or assumed as
of the exchange date. The identifiable assets acquired, as well as the
identifiable liabilities and contingenciesassumed in a business combination
are initially valued at their fair value on the acquisition date, regardless
the scope of minority interests.Goodwill is initially measured as the excess
of the aggregate of the consideration transferred and the fair value of
non-controlling interestover the net identifiable assets acquired and
liabilities assumed. If this consideration is lower than the fair value of the
net assetsof the subsidiary acquired, the difference is recognized as income.
F-
20
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Joint operations
As explained in
Note 1- Generalinformation
, for the joint arrangements that qualify as joint operations, the Company
recognizes its share of the assets,liabilities and income in respect to its
interest in the joint operations in accordance with IFRS 11.
Intercompany transaction
Intercompany transactions, balances and unrealized gains from transactionsbetwee
n the Company's entities are eliminated in consolidation. Unrealized losses
are also eliminated, unless the transaction providesevidence of an impairment
of the asset transferred. Whenever necessary, the accounting policies of
subsidiaries are amended to ensureuniformity with the policies adopted by the
Company.
Non-controlling Interest
Non-controlling interest is presented in the Equity section of theConsolidated
Statement of Financial Position. The net income attributable to equity holder
of the parent and non-controlling interestare each disclosed separately in the
Consolidated Statement of Income after net income.
Investments accounted for using the equitymethod
Joint ventures and associates
The Company maintains investments in joint arrangements that qualifyas joint
ventures, which correspond to a contractual agreement by which two or more
parties carry out an economic activity that is subjectto joint control, and
normally involves the establishment of a separate entity in which each party
has a share based on a shareholders'agreement. In addition, the Company
maintains investments in associates which are defined as entities in which the
investor exercisessignificant influence but has no control over financial or
operating policies and are not a subsidiary or a joint venture.
The Company accounts for its participation in joint arrangementsthat qualify
as joint ventures and in associates using the equity method. The financial
statements of the joint venture are prepared forthe same year, under
accounting policies consistent with those of the Company. Adjustments are made
to agree any difference in accountingpolicies that may exist with the
Company's accounting policies.
Whenever the Company contributes or sells assets to companies underjoint
control or associates, any income or loss arising from the transaction is
recognized based on how the asset is realized. When theCompany purchases
assets from those companies, it does not recognize its share in the income or
loss of the joint venture in respect tosuch transaction until the asset is
sold or realized.
2.3 Financial information as per operating segments
The Company has defined three operating segments which are essentiallydefined
with respect to its revenues in the geographic areas of commercial activity:
1.- Chile, 2.- International business and 3.- Wine.
These operating segments mentioned are consistent with the way theCompany is
managed and how results will be reported by CCU. These segments reflect
separate operating results which are regularly reviewedby chief operating
decision maker in order to make decisions about the resources to be allocated
to the segment and assess its performance(See
Note 6 - Financial information as per operating segment
).
The segments performance is measured according to several indicators,of which
OR (Adjust Operating Result), OR before Exceptional Items (EI), ORBDA (Adjust
Operating Result Before Depreciation and Amortization),ORBDA before EI, ORBDA
margin (ORBDA's % of total revenues for the operating segment), the volumes
and Net sales. Sales betweensegments are conducted using terms and conditions
at current market rates.
The Company defined the Adjusted Operating Result as the Net incomes(losses)
before Other gains (losses), Net financial cost, Equity and income from joint
ventures and associates, Gains (losses) on exchangedifferences, Results as per
adjustment units and Income tax, and the ORBDA, for the Company purposes, is
defined as Adjusted OperatingResult before Depreciation and Amortization.
MSD&A, included Marketing, Selling, Distributionand Administrative expenses.
F-
21
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Corporate revenues and expenses are presented separately withinthe Other.
2.4 Foreign currency and adjustment units
Presentation and functional currency
The Company use the Chilean peso (Ch$ or CLP) as its functionalcurrency and
for the presentation of its financial statements. The functional currency has
been determined considering the economic environmentin which the Company
carries out its operations and the currency in which the main cash flows are
generated. The functional currency ofthe U.S., Argentinian, Uruguayan,
Paraguayan and Bolivian, United Kingdom and China subsidiaries is the US
Dollar, Argentine Peso, UruguayanPeso, Paraguayan Guarani, Bolivian and
Sterling Pound, respectively. The functional currency of the joint venture in
Colombia and associatein Argentine and Peru is the Chilean Peso, Colombian
Peso and Argentine Peso and the Sol, respectively.
Transactions and balances
Transactions in foreign currencies and adjustment units ("Unidadde Fomento" or
"UF") are initially recorded at the exchange rate of the corresponding
currency or adjustment unit asof the date on which the transaction occurs. The
Unidad de Fomento (UF) is a Chilean inflation-indexed peso-denominated
monetary unit.The UF rate is set daily in advance based on changes in the
previous month's inflation rate. At the close of each Interim ConsolidatedStatem
ent of Financial Position, the monetary assets and liabilities denominated in
foreign currencies and adjustment units are translatedinto Chilean pesos at
the exchange rate of the corresponding currency or adjustment unit. The Gains
(losses) on exchange differences arising,both from the liquidation of foreign
currency transactions, as well as from the valuation of foreign currency
monetary assets and liabilities,are included in the Statement of income, in
Gains (losses) on exchange differences, while the difference arising from the
changes in adjustmentunits are recorded in the Statement of income as Result
as per adjustment units.
For consolidation purposes, the assets and liabilities of the subsidiarieswhose
functional currency is different from the Chilean peso and not operating in
countries whose economy is considered hyperinflationary,are translated into
Chilean pesos using the exchange rates prevailing at the date of the Interim
Consolidated Financial Statements andGains (losses) on exchange differences
originated by the conversion of assets and liabilities, are recorded under
Reserve of exchangedifferences on translation within Other equity reserves.
Incomes, costs and expenses are translated at the average monthly exchange
ratefor the respective fiscal years. These exchange rates have not suffered
significant fluctuations during these months.
The results and financial situation in CCU Group's entities whichhave a
functional currency different from the presentation currency being their
functional currency, the currency of a hyperinflationaryeconomy (as the case
of subsidiaries in Argentina as from 1 July 2018 as described below) are
converted into the presentation currencyas established in IAS 21 and IAS 29.
Financial information in hyperinflationaryeconomies
Inflation in Argentina has shown significant increases since thebeginning of
2018. The three-year cumulative inflation rate, calculated using different
combinations of consumer price indices, has exceeded100% for several months,
and it is still increasing. The three-year cumulative inflation calculated
using the general price index hasalready exceeded 100%. Therefore, as
prescribed by IAS 29, Argentina was declared a hyperinflationary economy as of
July 1, 2018.
In accordance with the foregoing, IAS 29 must be applied by allthose entities
whose functional currency is the Argentine peso for the accounting periods
ended after July 1, 2018, as if the economyhad always been hyperinflationary.
In this regard, IAS 29 requires that the financial statements of an entity
whose functional currencyis the currency of a hyperinflationary country be
restated in terms of the purchasing power in force at the end of the reporting
period.This implies that the restatement of non-monetary items must be made
from their date of origin, last restatement, appraisal or other particulardate
in some very specific cases.
The adjustment factor used in each case is that obtained based onthe combined
index of the National Consumer Price Index (CPI), with the Wholesale Price
Index (IPIM), published by the National Instituteof Statistics and Census of
the Argentinian Republic (INDEC), according to the series prepared and
published by the Argentine Federationof Professional Councils of Economic
Sciences (FACPCE).
For consolidation purposes, subsidiaries whose functional currencyis the
Argentine peso, paragraph 43 of IAS 21 has been considered which requires that
the financial statements of a subsidiary that hasthe functional currency of a
hyperinflationary economy be restated in accordance with IAS 29 before being
converted at the closing exchangerate on the reporting date and to be included
in the consolidated financial statements.
The re-expression of non-monetary items is made from the date ofinitial
recognition in the statements of financial position and considering that the
financial statements are prepared under the criteriaof historical cost.
F-
22
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Hyperinflation re-expression will be recorded until the period inwhich the
entity's economy ceases to be considered a hyperinflationary economy; at that
time, adjustments made by hyperinflation willbe part of the cost of
non-monetary assets and liabilities.
The Gains (losses) derived from net monetaryposition of the subsidiaries in
Argentina are presented below, which are recorded in Result as per adjustment
units:
For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Gains (losses) derived (1,706,046) (3,682,615) 1,761,280 (1,707,921)
from net monetary position
The exchange rates of the primary foreign currencies, adjustmentunits and
index used in the preparation of the consolidated financial statements are
detailed as follows:
Chilean Pesos as per unit of foreign currency or adjustable unit As of June 30, 2023 As of December 31, 2022 As of June 30, 2022
Ch$ Ch$ Ch$
Foreign currencies
US Dollar USD 801.66 855.86 932.08
Cumulative monthly average US Dollar Average USD 806.22 872.33 824.84
Euro EUR 874.79 915.95 976.72
Argentine Peso ARS 3.12 4.83 7.44
Uruguayan Peso UYU 21.43 21.36 23.38
Canadian Dollar CAD 605.67 632.61 724.17
Sterling Pound GBP 1,019.28 1,033.90 1,135.30
Paraguayan Guarani PYG 0.11 0.12 0.14
Swiss Franc CHF 896.01 927.36 977.02
Bolivian BOB 115.18 122.97 133.92
Australian Dollar AUD 534.16 583.01 643.97
Danish Krone DKK 117.50 123.18 131.33
Brazilian Real BRL 167.36 161.96 179.20
Colombian Peso COP 0.19 0.18 0.23
Adjustment units
Unidad de fomento (*) UF 36,089.48 35,110.98 33,086.83
Unidad indexada (**) UI 124.74 118.93 125.34
(*) The Unidad de Fomento (UF) is a Chilean inflation-indexed,Chilean
peso-denominated monetary unit. The UF rate is set daily in advance based on
changes in the previous month´s inflation rate.
(**) The Unidad Indexada (UI) is a Uruguay inflation-indexed,Uruguayan
peso-denominated monetary unit. The UI rate is set daily in advance based on
changes in the previous month´s inflationrate.
Index used in hyperinflationary economies As of June 30, 2023 As of December 31, 2022 As of June 30, 2022
Argentina Consumer Price Index 1,750.74 1,138.64 790.80
Index percentage variation of Argentina Consumer Price Index 53.8% 95.5% 35.8%
2.5 Cash and cash equivalents
Cash and cash equivalents include available cash, bank balances,time deposits
at financial institutions, investments in mutual funds and financial
instruments acquired under resale agreements, as wellas highly liquid
short-term investments, all at a fixed interest rate, normally with original
maturity of up to three months.
F-
23
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
2.6 Other financial assets
Other financial assets include money market securities, derivativecontracts
and time deposits with financial institutions with maturities of more than 90
days.
2.7 Financial instruments
IFRS 9 - Financial instruments, replaces the IAS 39 - Financialinstruments,
for the annual periods beginning on January 1, 2018 and which brings together
three aspects of accounting and which are:classification and measurement;
impairment and hedge accounting.
Financial assets
The Company recognizes a financial asset in its Interim ConsolidatedStatement
of Financial Position as follows:
As of the date of initial recognition, management classifies itsfinancial
assets: (i) at fair value through profit and loss (ii) Trade and other current
receivables and (iii) hedging derivatives. Theclassification depends on the
purpose for which the financial assets were acquired. For instruments not
classified at fair value throughIncome, any cost attributable to the
transaction is recognized as part of the asset's value.
The fair value of instruments that are actively traded in formalmarkets is
determined by the traded price on the Interim Financial Statement closing
date. For investments without an active market, fairvalue is determined using
valuation techniques including (i) the use of recent market transactions, (ii)
references to the current marketvalue of another financial instrument of
similar characteristics, (iii) discounted cash flows and (iv) other valuation
models.
After initial recognition, the Company values the financial assetsas described
below:
Trade and other current receivables
Trade receivable credits or accounts are recognized according totheir invoice
value.
The Company purchases credit insurance covering approximately 90%of
individually significant accounts receivable balances for the domestic market
and the international market, of total trade receivable,respectively, net of a
10% deductible.
An impairment of accounts receivable balances is recorded when thereis
objective evidence that the Company not will be capable to collect amounts
according to the original terms. Some indicators that anaccount receivable may
be impaired are the financial problems, initiation of a bankruptcy, financial
restructuring and age of the balancesof our customers.
Estimated losses from bad debts is measured in an amount equal tothe
"expectations of credit losses", using the simplified approach established in
IFRS 9 and in order to determine whether ornot there is impairment from
portfolio, a risk analysis is carried out according to the historical
experience (three years) on the uncollectibility,also considering other
factors of aging until reaching 100% of the balance in most of the debts older
than 180 days, with the exceptionof those cases that in accordance with
current policies, losses are estimated due to partial deterioration based on a
case by case analysis.
The Company considers that these financial assets may be impairedwhen: i) The
debtor is unlikely to pay its obligations and the Company it hasn't still
taken actions such as to claim the creditinsurance, or ii) The financial asset
has exceeded the contractually agreed expiration date.
a) Measurement of expected loss
The Expected Credit Loss corresponds to the probability of creditlosses
according to recent history considering the uncollectability of the last three
mobile years. These historical indices are adjustedaccording to the monthly
payment and amount of the different historical trade receivables.
Additionally, the portfolio is analyzed accordingto its solvency probability
for the future, its recent financial history and market conditions, to
determine the category of the client,for the constitution of impairment in
relation to its defined risk.
F-
24
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
b) Credit impairment
On each issuing date of the Financial Statements, the Company evaluatesif
these financial assets measured at amortized cost have credit impairment. A
financial asset has a "credit impairment" whenone or more events occur that
have a detrimental impact on the estimation of future cash flows.
Additionally, the Company includes informationon the effects of modifications
to the contractual effective flows (repactations), which are minor and
correspond to specific cases withstrategic clients of the Company.
Additionally, the company maintains credit insurance for individuallysignificant
accounts receivable. Impairment losses are recorded in the Consolidated
Statement of Income in the period incurred.
Current trade receivable credits and accounts are initially recognizedat their
nominal value and are not discounted. The Company has determined that the
calculation of the amortized cost is not materiallydifferent from the invoiced
amount because the transactions do not have significant associated costs.
Financial liabilities
The Company recognizes a financial liability in its Interim ConsolidatedStatemen
t of Financial Position as follows:
Interest-bearing loans and financial obligations
Interest-bearing loans and financial obligations are initially recognizedat
the fair value of the resources obtained, less incurred costs that are
directly attributable to the transaction. After initial recognition,interest-bea
ring loans and obligations are measured at amortized cost. The difference
between the net amount received and the value tobe paid is recognized in the
Interim Consolidated Statement of Income over the term of the loan, using the
effective interest rate method.
Interest paid and accrued related to loans and obligations usedto finance its
operations are presented under Finance costs.
Interest-bearing loans and obligations maturing within twelve monthsare
classified as current liabilities, unless the Company has the unconditional
right to defer payment of the obligation for at leasttwelve months after the
closing date of the Interim Consolidated Financial Statement.
Trade and other payables
Trade and other payables are initially recognized at nominal valuebecause they
do not differ significantly from their fair value. The Company has determined
that no significant differences exist betweenthe carrying value and amortized
cost using the effective interest rate method.
Derivative Instruments
All derivative financial instruments are initially recognized atfair value as
of the date of the derivative contract and subsequently re-measured at their
fair value. Gains and losses resulting fromfair value measurement are recorded
in the Interim Consolidated Statement of Income as gains or losses due to fair
value of financialinstruments, unless the derivative instrument is designated
as a hedging instrument.
Financial Instruments at fair value through profit and loss includefinancial
assets classified as held for trading and financial assets which have been
designated as such by the Company. Financial assetsare classified as held for
trading when acquired for the purpose of selling them in the short term.
Derivative instruments classified as hedges are accounted for ascash flow
hedges.
In order to classify a derivative as a hedging instrument for accountingpurposes
, the Company documents (i) as of the transaction date or at designation time,
the relationship or correlation between the hedginginstrument and the hedged
item, as well as the risk management purposes and strategies, (ii) the
assessment, both at designation dateas well as on a continuing basis, whether
the derivative instrument used in the hedging is highly transaction effective
to offset changesin inception cash flows of the hedged item. A hedge is
considered effective when changes in the cash flows of the underlying
directlyattributable to the risk hedged are offset with the changes in fair
value, or in the cash flows of the hedging instrument with effectivenessbetween
80% to 125%.
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25
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The total fair value of a hedging derivative is classified as assetsor
financial liabilities in Other non-current if the maturity of the hedged item
is more than 12 months and as other assets or currentliabilities if the
remaining maturity of the hedged item is less than 12 months. The ineffective
portion of these instruments can be viewedin Other gains (losses) of the
Interim Consolidated Statements of Income. The effective portion of the change
in the fair value of derivativeinstruments that are designated and qualified
as cash flow hedges are initially recognized in Cash Flow Hedge Reserve in a
separate componentof Equity. The income or loss related to the ineffective
portion is immediately recognized in the Consolidated Statement of Income.
Theamounts accumulated in Equity are reclassified in Income during the same
period in which the corresponding hedged item is reflected inthe Interim
Consolidated Statement of Income. When a cash flow hedge ceases to comply with
the hedge accounting criteria, any accumulatedincome or loss existing in
Equity remains in Equity and is recognized when the expected transaction is
finally recognized in the InterimConsolidated Statement of Income. When it is
estimated that an expected transaction will not occur, the accumulated gain or
loss recordedin Equity is immediately recognized in the Interim Consolidated
Statement of Income.
Derivative instruments are classified as held for trading unlessthey are
classified as hedge instruments.
Option Contracts
Corresponds to contracts through which the buyer or holder acquires,at a price
called option premium, the right to buy (call option) or sell (put option),
during a determined term or on a determined dateand at a prefixed price called
option exercise price, a determined number of units of a previously defined
and duly characterized targetasset.
The options acquired (Call) must be recorded in an asset accountcalled "Option
Rights" in Financial Assets, at their fair value. In the event of delivered
options, a liability account called"Option contract liability" must be created
under Financial Liabilities, at the fair value of the option delivered. In the
eventof a difference between the aforementioned fair value and the amount paid
or received by the Company for the option acquired or delivered,as applicable,
this difference should be charged or credited to the Consolidated Statement of
Income by function or other reserves asappropriate. (See
Note 2 - Summary of significant accounting policies 2.1
).
Deposits for returns of bottles and containers
Deposits for returns of bottles and containers corresponds to theliabilities
registered by the guarantees of money received from customers for bottles and
containers placed at their disposal and representsthe value that will be
returned to the customer when it returns the bottles to the Company in good
condition along with the original invoice.This value is determined by the
estimation of the bottles and containers in circulation that are expected to
be returned to the Companyin the course of time based on the historic
experience, physical counts held by clients and independent studies over the
quantities thatare in the hands of end consumers, valued at the average
weighted guarantees for each type of bottles and containers.
The Company does not intend to make significant repayment of thesedeposits
within the next 12 months. Such amounts are classified within current
liabilities, under the line Other financial liabilities,since the Company does
not have the legal ability to defer this payment for a period exceeding 12
months. This liability is not discounted,since it is considered a payable on
demand, with the original invoice and the return of the respective bottles and
containers and it doesnot have adjustability or interest clauses of any kind
in its origin.
2.8 Financial asset impairment
As of each Interim Consolidated Financial Statement date the Companyassesses
whether a financial asset or group of financial assets is impaired.
The Company assesses impairment of accounts receivable collectivelyby grouping
the financial assets according to similar risk characteristics, which indicate
the debtor's capacity to comply withtheir obligations under the agreed upon
conditions. When there is objective evidence that a loss due to impairment has
been incurred inthe accounts receivable, the loss amount is recognized in the
Interim Consolidated Statement of Income, as Administrative expenses.
If the impairment loss amount decreases during subsequent periodand such
decrease can be objectively related to an event occurred after recognition of
the impairment, the previously recognized impairmentloss is reversed.
Any subsequent impairment reversal is recognized in Income providedthat the
carrying amount of the asset does not exceed its value as of the date the
impairment was recognized.
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26
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
2.9 Inventories
Inventories are stated at the lower of cost acquisition or productioncost and
net realizable value. The production cost of finished products and of products
under processing includes raw material, directlabor, indirect manufacturing
expenses based on a normal operational capacity and other costs incurred to
place the products at the locationsand in the conditions necessary for sale,
net of discounts attributable to inventories.
The net realizable value is the estimated sale price in the normalcourse of
business, less marketing and distribution expenses. When market conditions
cause the production cost to be higher than its netrealizable value, an
allowance for assets deterioration is registered for the difference in value.
This allowance for inventory deteriorationalso includes amounts related to
obsolete items due to low turnover, technical obsolescence and products
withdrawn from the market.
The inventories and cost of products sold, is determined using theWeighted
Average Cost (WAC). The Company estimates that most of the inventories have a
high turnover.
The materials and raw materials purchased from third parties arevalued at
their acquisition cost; once used, they are incorporated in finished products
using the WAC methodology.
2.10 Current biological assets
Under current Biological assets, the Company includes the costsassociated with
agricultural activities (grapes), which are capitalized up to the harvesting
date, when they become part of the inventorycost for subsequent processes. The
Company considers that the costs associated with agricultural activities
represent a reasonable approximationto their fair value.
2.11 Other non-financial assets
Other non-financial assets mainly include prepayments associatedwith
advertising related to contracts regarding the making of commercials which are
work in progress and have not yet been shown (currentand non-current),
payments to insurances and advances to suppliers in relation with certain
purchases of property, plant and equipment.Additionally paid guarantees
related with leases and materials to be consumed related to industrial safety
implements.
2.12 Property, plant and equipment
Property, plant and equipment items are recorded at their historiccost, less
accumulated depreciation and impairment losses. The cost includes both
disbursements directly attributable to the asset acquisitionor construction,
as well as the financing interest directly related to certain qualified
assets, which are capitalized during the constructionor acquisition period, as
long as these assets qualify for these purposes considering the period
necessary to complete and prepare theassets to be operative. Disbursements
after the purchase or acquisition are only capitalized when it is likely that
the future economicbenefits associated to the investment will flow to the
Company, and costs may be reasonably measured. Subsequent disbursements
relatedto repairs and maintenance are recorded as expenses when incurred.
Depreciation of property, plant and equipment is calculated on astraight-line
basis based on the estimated useful lives of the assets, considering their
estimated residual value. When an asset is comprisedof significant components,
which have different useful lives, each part is depreciated separately. The
estimated useful lives and residualvalues of property, plant and equipment are
reviewed and adjusted, if necessary, at each balance sheet date. The estimated
useful livesof property, plant and equipment are detailed as follows:
Type of Assets Number of years
Land Indefinite
Buildings and Constructions 20 to 60
Machinery and equipment 10 to 25
Fumiture and accesories 5 to 10
Other equipment (coolers) 5 to 8
Glass containers, plastics and containers 3 to 12
Vines in production 30
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27
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Gains and losses resulting from the sale of properties, plants andequipment
are calculated comparing their book values against the related sales proceeds
and are included in the Interim Consolidated Statementof Income.
Biological assets held by Vina San Pedro TarapacaS.A. (VSPT) and its
subsidiaries consist of vines in formation and in production. Harvested grapes
are used for subsequent wine production.
Vines under production are valued at the historic cost, less depreciationand
any impairment loss.
Depreciation of vines in production is recorded using the straight-linemethod
over the 30-year estimated average production life, which is periodically
assessed. Vines in formation are not depreciated untilthey start producing.
Costs incurred in acquiring and planting new vines are capitalized.
When the carrying amount of a property, plant and equipment itemexceeds its
recoverable value, it is immediately written down to its recoverable amount
(See
Note 2- Summary of significant accounting policies 2.17
).
2.13 Leases
Lease contracts are recorded by recognizing an asset for the rightto use the
assets subject to operational lease contracts recorded under Right of use
assets and a liability recorded under Current leaseliabilities, which are
equivalent to the present value of the payments associated to the contract. It
should be noted that the assetsand liabilities arising from a lease contract
are initially measured at its present value.
Regarding the effects on the Consolidated Statement of Income, thedepreciation
of the right of use is recognized on a monthly basis using the straight-line
method over the lease term, together with thefinancial cost associated to the
lease; both are recognized in our P&L during the lease period in order to
produce a constant periodicinterest rate over the remaining balance of the
liability. In case of modifications to the lease agreement, such as lease
value, maturity,readjustment index, associated interest rate, etc., the lessee
recognizes the amount of the new measurement of the lease liability asan
adjustment to the asset for the right of use. Additionally, the Company
applied exemptions for leases with remaining terms less than12 months and
leases with a value lower than USD 5,000. The Company recognizes the lease
payments associated with these transactions asa straight-line expense over the
term of the lease.
Prior to the adoption of IFRS 16, the Company classified leasesas finance
leases when all the risks and rewards associated with the ownership of the
assets were substantially transferred. All otherleases were considered as
operational. The assets acquired through financial leasing were recorded as
non-current assets, initially beingvalued at the present value of future
minimum payments or at their fair value if lower, reflecting in the liability
the debt with thelessee. In this scenario the payments were accounted as the
payments of the debt plus the corresponding financial cost, which is
accountedas the financial cost of the period. In case of operating leases, the
expense was accounted based on the duration of the lease agreementfor the
value of the accrued service.
2.14 Investment properties assets
Investment property consist of land and buildings held by the Companyfor the
purpose of generating appreciation and not to be used in the normal course of
business, and are recorded at historical cost lessany impairment loss.
Depreciation of investment property, excluding land, is calculated using the
straight-line method over the estimateduseful life of the asset, taking into
account their estimated residual value.
2.15 Intangible assets other than goodwill
Commercial trademarks
The Company's commercial trademarks are intangible assetswith indefinite
useful lives that are presented at historical cost, less any impairment loss.
The Company believes that through investingin marketing, trademarks maintain
their value, consequently they are considered as having indefinite useful
lives and they are not amortizable.These assets are tested for impairment
annually or more frequently if events or circumstances indicate potential
impairment (See
Note2 - Summary of significant accounting policies 2.17
).
F-
28
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Software program
Software program licenses are capitalized at the value of the costsincurred in
their acquisition and in preparing the software for use. Such costs are
amortized over their estimated useful lives (4 to7 years). The maintenance
costs of software programs are recognized as an expense in the year in which
they are incurred.
Water rights
Water rights acquired by the Company correspond to the right touse existing
water from natural sources, and are recorded at their attributed cost as of
the date of transition to IFRS. Since such rightsare perpetual they are not
amortizable, however they are tested for impairment annually, or more
frequently if events or circumstancesindicate potential impairment (See
Note 2 - Summary of significant accounting policies 2.17
).
Distribution rights
Corresponds to rights acquired to distribute different products.These rights
are amortized over their estimated useful lives.
Research and development
Research and development expenses are recognized in the period incurred.
2.16 Goodwill
Goodwill arises on the acquisition of subsidiaries and representsthe excess of
the consideration transferred, the amount of any non-controlling interest in
the acquire and the acquisition date fair valueof any previous equity interest
in the acquire over the fair value of the identifiable net assets acquired. If
the total of considerationtransferred, non-controlling interest recognized and
previously held interest measured at fair value is less than the fair value of
thenet assets of the subsidiary acquired, in the case of a bargain purchase,
the difference is recognized directly in the statement of income.Godwill is
accounted for at its cost value less accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated toeach of the
Cash Generating Units (CGUs), or groups of CGUs, that is expected to benefit
from the synergies of a business combination.Each unit or group of units (See
Note 18 - Goodwill
) to which the goodwill is allocatedrepresents the lowest level within the
entity at which goodwill is monitored for internal management purposes, which
is not larger thana business segment. The CGUs to which the goodwill is
assigned are tested for impairment annually or more frequently if events or
changesin circumstances indicate potential impairment.
An impairment loss is recognized for the amount by which the carryingamount of
the CGU exceeds its recoverable amount. The recoverable amount of the CGU is
the higher of value in use and the fair value lesscosts to sell.
An impairment loss is first allocated to goodwill to reduce itscarrying
amount, and then to other assets in the CGU. Once recognized, impairment
losses are not subsequently reversed.
2.17 Impairment of non-financial assets other than goodwill
The Company annually assesses the existence of non-financial assetimpairment
indicators. When indicators exist, the Company estimates the recoverable
amount of the impaired asset. If it cannot estimatethe recoverable amount of
the impaired asset at an individual level, the Company estimates the
recoverable amount of the cash generatingunit to which the asset belongs.
For intangible assets with indefinite useful lives which are notamortized, the
Company performs all required testing to ensure that the carrying amount does
not exceed the recoverable value.
The recoverable value is defined as the fair value, less sellingcost or value
in use, whichever is higher. Value in use is determined by estimating future
cash flows associated to the asset or to thecash generating unit, discounted
from its current value by using interest rates before taxes, which reflect the
time value of money andthe specific risks of the asset. If the carrying amount
of the asset exceeds its recoverable amount, the Company records an
impairmentloss in the Statement of Income.
For the rest of non-financial assets other than goodwill and intangibleswith
indefinite useful lives, the Company assesses the existence of impairment
indicators when an event or change in business circumstancesindicates that the
carrying amount of the asset may not be recoverable and impairment is
recognized whenthe carrying amount is higher than the recoverable value.
F-
29
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The Company annually assesses whether the impairment indicatorsof
non-financial assets for which impairment losses were recorded during prior
years have disappeared or decreased. In the event of suchsituation, the
recoverable amount of the specific asset is recalculated and its carrying
amount is increased, if necessary. Such increaseis recognized in the Interim
Consolidated Statement of Income as reversal of impairment losses. The
increase in the value of the previouslyimpaired asset is recognized only when
it is originated by changes in the assumptions used to calculate the
recoverable amount. The increasein the asset due to reversal of the impairment
loss is limited to the amount that would have been recorded had the impairment
not occurred.
2.18 Non-current assets of disposal groups classified as held for sale
The Company register as non-current assets of disposal groups classifiedas
held for sale as Property, plant and equipment expected to be sale, for which
active sale negotiations have begun.
These assets are measured at the lower of their carrying amountand the
estimated fair value, less selling costs. From the moment in which the assets
are classified as non-current assets of disposalgroup classified held for sale
they are no longer depreciated.
2.19 Income taxes
The income tax account is composed of current income tax associatedto legal
income tax obligations and deferred taxes recognized in accordance with IAS
12. Income tax is recognized in the Interim ConsolidatedStatement of Income by
Function, except when it is related to items recorded directly in Equity, in
which case the tax effect is alsorecognized in Equity.
Income Tax Obligation
Income tax obligations are recognized in the financial statementson the basis
of the best estimates of taxable profits as of the financial statement closing
date, and the income tax rate valid as ofthat date in the countries where the
Company operates.
Deferred Tax
Deferred taxes are those the Company expects to pay or to recoverin the
future, due to temporary differences between the carrying amount of assets and
liabilities (carrying amount for financial reportingpurposes) and the
corresponding tax basis of such assets and liabilities used to determine the
profits subject to taxes. Deferred taxassets and liabilities are generally
recognized for all temporary differences, and they are calculated at the rates
that will be validon the date the liabilities are paid or the assets realized.
Deferred tax is recognized on temporary differences arising frominvestments in
subsidiaries and associates, except in cases where the Company is able to
control the date on which temporary differenceswill be reversed, and it is
likely that they will not be reverted in the foreseeable future. Deferred tax
assets, including those arisingfrom tax losses are recognized provided it is
likely that in the future there will be taxable profits against which
deductible temporarydifferences can be offset.
Deferred tax assets and liabilities are offset when there is a legalright to
offset tax assets against tax liabilities, and the deferred tax is related to
the same taxable entity and the same tax authority.
2.20 Employees benefits
Employees Vacation
The Company accrues the expense associated with staff vacation whenthe
employee earns the benefit.
Employees Bonuses
The Company recognizes a liability and an expense for bonuses whenit's
contractually obligated, it is estimated that, depending on the income
requirement at a given date, bonuses will be paid outat the end of the year.
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30
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Severance Indemnity
The Company recognizes a liability for the payment of irrevocableseverance
indemnities, originated from the collective and individual agreements entered
into with employees. Such obligation is determinedbased on the actuarial value
of the accrued cost of the benefit, a method which considers several factors
in the calculation, such asestimates of future continuance, mortality rates,
future salary increases and discount rates. The determined value is shown at
its presentvalue by using the accrued benefits for years of service method.
The discount rates are determined by reference to market interest ratescurves.
The current losses and gains are directly recorded in Interim Consolidated
Statement of Income.
According to the amendment of IAS 19, the actuarial gains and lossesare
recognized directly in Interim Consolidated Statemen of Comprehensive Income,
under Equity and, according to the accounting policiesof the Company,
financial costs related to the severance indemnity are directly recorded under
financial cost in the Interim ConsolidatedStatement of Income.
2.21 Provisions
Provisions are recognized when: (i) the Company has a current legalor implicit
obligation, as a result of past events, (ii) it is probable that monetary
resources will be required to settle the obligationand (iii) the amounts can
be reasonably established. The amounts recognized as provisions as of the
Interim Consolidated Financial Statementclosing date, are Management's best
estimates, and consider the necessary disbursements to liquidate the
obligation.
The concepts used by the Company to establish provisions chargedagainst income
correspond mainly to civil, labor and taxation proceedings that could affect
the Company (See
Note24 - Other provisions
).
2.22 Revenue recognition
Revenue is recognized when it is likely that economic benefits willflow to the
Company and these can be reliably measured. Income is measured at the fair
value of the economic benefits received or to bereceived, and is presented net
of valued added tax, specific taxes, returns, discounts and rebates.
Goods sold are recognized after the Company has transferred to thebuyer all
the risks and benefits inherent to ownership of the goods, and it do not have
the right to dispose of them. In general, thismeans that sales are recorded
when the risks and benefits of ownership are transferred to the customer,
pursuant to the terms agreed inthe commercial agreements and once the
performance obligation is satisfied.
In relation to IFRS 15, the Company has applied the criteria establishedin
this standard for these Consolidated Financial Statements.
Sale of products in the domestic market
The Company obtains its revenues, mainly from the sales of beers,soft drinks,
mineral waters, purified water, nectars, wines, cider and spirits, products
that are distributed through retail establishments,wholesale distributors and
supermarket chains, and none of which act as commercial agents of the Company.
Such revenues in the domesticmarkets, net of the value added tax, specific
taxes, returns, discounts and rebates to clients, are recognized when products
are delivered,together with the transfer of all risks and benefits related to
them and once the performance obligation is satisfied.
Exports
In general, the Company's sales delivery conditions are thebasis for revenue
recognition related to exports.
The structure of revenue recognition is based on the grouping ofIncoterms,
mainly in the following groups:
• "FOB (Free on Board) shipping point", by which the buyer organizes and pays for transportation,consequently the
sales occur and revenue is recognized upon delivery of the merchandise to the transporter hired by the buyer.
• "CIF (Cost, Insurance & Freight) and similar", by which the Company organizes and paysfor external
transportation and some other expenses, although CCU ceases being responsible for the merchandise
after delivering it tothe marine or air shipping company in accordance with the relevant terms. The
sale occurs and revenue is recognized upon the deliveryof merchandise at the port of destination.
In case of discrepancies between the commercial agreements and Incoterms,the
former shall prevail.
F-
31
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The revenue recognition related to exports are recorded net of specifictaxes,
returns, discounts and rebates to clients, are recognized when products are
delivered, together with the transfer of all risksand benefits related to them
and once the performance obligation is satisfied.
2.23 Commercial agreements with distributors and supermarket chains
The Company enters into commercial agreements with its clients,distributors
and supermarkets through which they establish: (i) volume discounts and other
client variables; (ii) promotional discountsthat correspond to an additional
rebate on the price of the products sold due to commercial initiatives
development (temporary promotions);(iii) payment for services and rendering of
counter-services (advertising and promotional agreements, use of preferential
spaces and others)and (iv) shared advertising, which corresponds to the
Company's participation in advertising campaigns, promotional magazines
andopening of new sales locations.
Volume discounts and promotional discounts are recognized as a reductionin the
selling price of the products sold. Shared advertising contributions are
recognized when the advertising activities agreed uponwith the distributor
have been carried out, and they are recorded as marketing expenses incurred,
under Other expenses by function.
Commitments with distributors or importers in the exports area arerecognized
on the basis of existing trade agreements.
2.24 Cost of sales of products
Cost of sales includes the production cost of the products soldand other costs
incurred to place inventories at the locations and under the conditions
necessary for the sale. Such costs mainly includeraw materials costs, packing
costs, production staff labor costs, production-related asset depreciation,
returnable bottles depreciation,license payments, operating costs and plant
and equipment maintenance costs.
2.25 Other incomes by function
Other incomes by function mainly include incomes from sale of fixedassets and
other assets, recovery of claims, leases and payments related to advance term
license.
2.26 Other expenses by function
Other expenses by function mainly include advertising and promotionexpenses,
depreciation of assets sold, selling expenses, marketing costs (sets, signs,
and neon signs at customer facilities) and marketingand sales staff
remuneration and compensation.
2.27 Distribution expenses
Distribution costs include all the necessary costs to deliver productsto
customers.
2.28 Administrative expenses
Administrative expenses include support unit staff remunerationand
compensation, depreciation of offices, equipment, facilities and furniture
used for these functions, non-current asset amortizationand other general and
administrative expenses.
2.29 Environment liabilities
Environmental liabilities are recorded based on the current interpretationof
environmental laws and regulations, or when an obligation is likely to occur
and the amount of such liability can be reliably calculated.
Disbursements related to environmental protection are charged tothe Interim
Consolidated Statements of Income by Function as incurred, except for
investments in infrastructure designed to comply withenvironmental
requirements, which are accounted for following the accounting policies for
property, plant and equipment.
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32
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note3 Estimates and application of professional judgment
The preparation of Financial Statement Consolidated requires estimatesand
assumptions from Management affecting the amounts included in the Interim
Consolidated Financial Statements and their related notes.The estimates made
and the assumptions used by the Company are based on historical experience,
changes in the industry and the informationsupplied by external qualified
sources. Nevertheless, final results could differ from the estimates under
certain conditions.
Significant estimates and accounting policies are defined as thosethat are
important to correctly reflect the Company's financial position and income,
and/or those that require a high level of judgmentby Management.
The primary estimates and professional judgments relate to the followingconcepts
:
• The valuation of goodwill acquired to determine the existence of losses due to potential impairment
(Note2 - Summary of significant accounting policies (2.16)
and
Note 18- Goodwill)
.
• The valuation of commercial trademarks to determine the existence of potential losses due to potentialimpairment
(Note 2 - Summary of significant accounting policies (2.17)
and
Note17 - Intangible assets other than goodwill)
.
• The assumptions used in the current calculation of liabilities and obligations to employees
(Note2 - Summary of significant accounting policies (2.20)
and
Note 26 - Employee benefits)
.
• Useful lives of property, plant and equipment
(Note 2 - Summary ofsignificant accounting policies (2.12)
and
Note 19 - Property, plant and equipment)
and intangibles
(Note 2 - Summary of significant accounting policies (2.15)
and
Note17 - Intangible assets other than goodwill)
.
• The assumptions used for calculating the fair of value financial instruments
(Note2 - Summary of significant accounting policies (2.7)
and
Note 7 - Financial instruments)
.
• The likelihood of occurrence and amounts estimated in an uncertain or contingent matter
(Note2 - Summary of significant accounting policies (2.21)
and
Note 24 - Other provisions)
.
• The valuation of current Biological assets
(Note 2 - Summary of significantaccounting policies (2.10)
and
Note 13 - Biological assets)
.
Such estimates are based on the best available information of theevents
analyzed to date in these Interim Consolidated Financial Statements. However,
it is possible that events that may occur in thefuture may result in
adjustments to such estimates, which would be recorded prospectively.
Note4 Accounting changes
During the six months ended on June 30, 2023, there have been nochanges in the
use of accounting principles or relevant changes in any accounting estimates
with regard to previous year that have affectedthese Interim Consolidated
Financial Statements.
F-
33
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note5 Risk Administration
Risk administration
In companies where CCU has a controlling interest, the Company'sAdministration
and Finance Management Department provides a centralized service for the
group's companies to obtain financing andadministration of exchange rates,
interest rates, liquidity, inflation, raw materials and credit risks. Such
activity operates in accordancewith a framework of policies and procedures
which is regularly reviewed to ensure it fulfils the purpose of managing the
risks by businessneeds.
In companies with a non-controlling interest (VSPT, CPCH, AguasCCU-Nestle
S.A., Bebidas del Paraguay S.A., Cerveceria Kunstmann S.A. and Bebidas
Bolivianas BBO S.A.) the responsibilityfor this service lies with the
respective Board of Directors and respective Administration and Finance
Management Department. When applicable,the Board of Directors and Directors
Committee has the final responsibility for establishing and reviewing the risk
administration structure,as well as for the reviewing significant changes made
to risk management policies.
In accordance with financial risk policies, the Company uses derivateinstruments
only for the purpose of hedging exposure to interest rate and exchange rate
risks arising from the Company's operationsand its sources of financing, which
some of them are treated as hedges for accounting purposes. Transactions with
derivate instrumentsare exclusively carried out by the Administration and
Finance staff and the Internal Audit Management Department regularly reviews
thecontrol of this function. Relationships with credit rating agencies and
monitoring of financial restrictions (covenants) are also managedby the
Administration and Finance Management Department.
The Company's main risk exposure is related to exchange rates,interest rates,
inflation and raw materials price (commodities), taxes, trade accounts
receivable and liquidity. Several types of financialinstruments are used to
manage the risk originated by these exposures.
For each of the following points, where applicable, the sensitivityanalysis
developed are merely for illustration purposes, since in practice the
variables used for this excercise rarely change withoutaffecting each other
and without affecting other factors that were considered as constant and which
also affect the Company's financialposition and results.
Exchange rate risk
The Company is exposed to exchange rate risks originated by: a)its net
exposure to foreign currency assets and liabilities, b) exports revenues, c)
the purchase of raw materials and capital investmentsin foreign currencies, or
indexed in such currencies, and d) the net investment of subsidiaries in
foreign countries. The Company'sgreatest exchange rate exposure is to the
variation on the Chilean peso as compared to the US Dollar, Euro, Argentine
Peso, UruguayanPeso, Paraguayan Guarani, Bolivian Peso and Colombian Peso.
As of June 30, 2023, the Company maintained foreign currency obligationsamountin
g to ThCh$ 638,483,578 (ThCh$ 624,587,229 for the year ended December 31,
2022) mostly denominated in US Dollars. Foreign currency obligations ThCh$
504,540,902as of June 30, 2023 (ThCh$ 516,448,473 for the year ended December
31, 2022) represent a 39% (39% as of December 31, 2022) of total otherfinancial
liabilities. The remaining 61% (61% as of December 31, 2022) is mainly
denominated in Unidades de Fomento (inflation-indexedChilean monetary unit -
see inflation risk section) and CLP. In addition, the Company has assets in
foreign currency as of June30, 2023 in the amount of ThCh$ 528,246,212 (ThCh$
590,728,935 for the year ended December 31, 2022) that mainly correspond to
cash and cash equivalent and export accounts receivable.
Regarding the operations of foreign subsidiaries, the net liabilityexposure in
US Dollars and other currencies amounts to ThCh$ 28,349,461 (ThCh$ 15,423,603
as of December 31, 2022).
To protect the value of the net foreign currency assets and liabilitiesposition
of its Chilean and Argentinean operations, the Company enters into derivate
contracts (currency forwards) to mitigate any variationin the Chilean peso and
Argentinean peso as compared to other currencies.
As of June 30, 2023 the net exposure in Chile, in US Dollars andother
currencies after the use of derivate instruments, is liability in the amount
of ThCh$ 6,329,438 (ThCh$ 601,931 for the year endedDecember 31, 2022).
F-
34
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
As of June 30, 2023 of the Company's total sales, both inChile and abroad, 4%
(5% as of June 30, 2022) corresponds to export sales in foreign currencies,
mainly US Dollars, Euros, British poundsand other currencies and approximately
62% (66% as of June 30, 2022) of total direct costs correspond to raw
materials and products purchasedin foreign currencies, or indexed to such
currencies. The Company does not hedge the possible variations in the expected
cash flows fromsuch transactions.
The Company is also exposed to fluctuations in exchange rates relatedto the
conversion from the US Dollar, Argentine Peso, the Uruguayan Peso, the
Paraguayan Guarani, the Bolivian Peso, the Britishpound, the Peruvian Sol and
the Colombian Peso to Chilean Pesos with respect to assets, liabilities,
income and expenses of its subsidiariesin Argentina, United States, Uruguay,
Paraguay Bolivia and United Kingdom, associates in Argentina and Peru and a
joint venturein Colombia. The Company does not hedge the risks associated to
the conversion of its subsidiaries, whose effects are recorded in equity.
Exchange rate sensitivity analysis
The effect of foreign exchange gains (losses) recognized in theInterim
Consolidated Statement of Income by Function for the period ended June 30,
2023, related to assets and liabilities denominatedin foreign currency, was a
loss of ThCh$ 11,444,734 (ThCh$ 9,836,230 as of June 30, 2022). Considering
the exposure in Chile at June 30, 2023, and assuming a 10% increasein the
exchange rate, and keeping constant all other variables such as interest rates
constant, it is estimated that the effect on theCompany's net income would be
a loss after taxes of ThCh$ 462,049 (ThCh$ 44,181 as of June 30, 2022)
associated of the owners ofthe controller.
Considering that approximately 4% of the Company's sales revenuecomes from
export sales carried out in Chile (6% as of June 30, 2022), in currencies
other than Chilean Peso, and that approximately 62%(66% as of June 30, 2022)
of the Company's direct costs are in or indexed to the US Dollar and assuming
that the functional currencieswill appreciate/depreciate by 10% in respect to
the US Dollar, and keeping all other variables constant, the hypothetical
effect on theCompany's income would be a loss/gain after taxes of ThCh$
20,800,828 (ThCh$ 19,879,212 as of June 30, 2022).
The Company can also be affected by changes in the exchange rateof the
countries where its foreign subsidiaries operate, since income is converted to
Chilean Pesos at the average exchange rate of eachmonth (except for Argentina
which uses the end of period exchange rate as the reporting date). The
operating income of foreign subsidiariesfor the period ended June 30, 2023 was
a income of ThCh$ 18,588,415 (ThCh$ 12,600,253 as of June 30, 2022).
Therefore, a depreciation/appreciationof 10% in the exchange rate of the
Argentine Peso, the Uruguayan Peso, the Paraguayan Guarani and the Bolivian
peso against the ChileanPeso, would result in a loss/income before taxes of of
ThCh$ 1,858,842 (Thch$ 1,260,025 as of June 30, 2022).
The net investment in foreign subsidiaries, associates and jointventures as of
June 30, 2023 amounted to ThCh$ 407,751,004, ThCh$ 4,477,360 and ThCh$
125,998,563 respectively (ThCh$ 417,864,198, ThCh$ 4,379,604 and ThCh$
125,672,009 as ofDecember 31, 2022). Assuming a 10% increase or decrease in
the Argentine Peso, Uruguayan Peso, Paraguayan Guarani, Bolivian Peso and
ColombianPeso against the Chilean Peso, and maintaining all other variables
constant, the increase/decrease would hypothetically result in a Netincome
profit/loss of ThCh$ 53,822,693 (ThCh$ 54,791,581 for the year ended December
31, 2022) recorded as a credit/charge to equity.
The Company does not hedge risks associated to currency conversionof the
financial statements of its subsidiaries that have a different functional
currency, whose effects are recorded in equity.
Interest rate risk
Interest rate risk mainly originates from the Company's financingsources.
To manage interest rate risk, the Company has a policy which seeksto reduce
the volatility of its finance cost, and maintain a suitable percentage of its
debt in fixed rate instruments. The financialposition is mainly set by the use
of short-term and long-term, as well as derivate instruments such as cross
currency swaps.
As of June 30, 2023 and December 31, 2022, after considering theeffect of
interest rates and currency swaps, a 100% of the Company's debt is at fixed
interest rates
The term and conditions of the Company's obligations withfinancial
institutions as of June 30, 2023, including exchange rates, interest rate,
maturities and effective interest rates, are detailedin
Note 21 - Other financial liabilities
.
F-
35
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Interest rate sensitivity analysis
The total financial cost recognized in the Interim ConsolidatedStatement of
Income by Function for the period ended June 30, 2023, related to short and
long-term debt amounted to ThCh$ 39,451,799 (ThCh$29,736,870 as of June 30,
2022).
Inflation risk
The Company maintains agreements indexed to Unidades de Fomento(UF) with third
parties, as well as UF indexed financial debt which means the Company is
exposed to fluctuations in the UF, generatingan increase in the value of those
agreements and liabilities if the UF increases due to inflation. This risk is
partially mitigated bythe Company's policy of keeping net sales per unit in UF
constant as long as the market conditions allow it, and taking cross
currencyswaps if the market conditions are favorable to the Company.
Inflation in Argentina has shown significant increases since thebeginning of
2018. The cumulative inflation rate of three years, calculated using different
combinations of consumer price indices, hasexceeded 100% for several months,
and it's still increasing. The cumulative three-year inflation calculated
using the general priceindex has already exceeded 100%. Therefore, as
prescribed by IAS 29, Argentina was declared a hyperinflationary economy as of
July 1,2018.
(See
Note 2 - Summary of significant accounting policies (2.4)
).
Inflation sensitivity analysis
Income from indexation units recognized in the Interim ConsolidatedStatement
of Income by Function for the period ended June 30, 2023, related to UF
indexed short and long-term debt and the applicationof Hyperinflation
Accounting in Argentina, is an loss of ThCh$ 5,189,463 (ThCh$ 5,072,346 as of
June 30, 2022). Assuming a reasonablypossible 3% increase (decrease) in the
Unidad de Fomento and 10% of inflation in Argentina, and keeping all other
variables such as interestrates constant, the aforementioned increase
(decrease) would hypothetically result in a loss (income) of ThCh$ 7,293,621
(ThCh$ 1,909,721 for the period ended June 30, 2022).
Raw material Price risk
The main exposure to raw materials price variation is related tobarley, malt,
and cans used in the production of beer, concentrates, sugar and plastic
containers used in the production of soft drinksand bulk wine and grapes for
the manufacturing of wine and spirits.
Malt and cans
In Chile, the Company obtains its malt supply from both local producersand the
international market. Long-term supply agreements are entered into with local
producers where the barley price is set annuallyaccording to market prices,
which are used to determine the price of malt according to the agreements.
The purchase commitments made expose the Company to raw materialsprice
fluctuation risk. CCU Argentina acquires malt from local producers. These raw
materials represent approximately 8% (6% for the periodended June 30, 2022) of
the direct cost of the Chile Operating segment.
For the period ended June 30, 2023 in the Chile Operation segment,the cost of
cans represented approximately 20% of direct costs (24% for the period ending
June 30, 2022). In the International BusinessOperating segment, the cost of
cans represented approximately 37% of direct raw materials costs June 30, 2023
(38% for the period endingJune 30, 2022).
Concentrates, sugar and plastic containers
The main raw materials used in the production of non-alcoholic beveragesare
concentrated, which are mainly acquired from licenses, sugar and plastic resin
for the manufacturing of plastic bottles and containers.The Company is exposed
to price fluctuation risks involving these raw materials, which jointly
represent approximately 29% (26% as ofJune 30, 2022) of the direct cost of the
Chile Operating segment.
The Company does not engage in hedging raw materials purchases.
F-
36
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Grapes and wine
The main raw materials used by subsidiary Vina San PedroTarapaca S.A. (from
now VSPT) for wine production are grapes harvested from its own vineyards and
grapes and wine acquired fromthird parties through long-term and spot
contracts. In the last 12 months, approximately 32% (27% as of December 31,
2022) of VSPT'stotal wine supply came from its own vineyards. Regarding our
export market, and considering our focus on this market, approximately 54%(45%
as of December 31, 2022) of our wine supply for export came from our own
vineyards.
The remaining 68% (73% as of December 31, 2022) supply was purchasedfrom third
parties through long-term and spot contracts. In the last 12 months, the
subsidiary VSPT acquired 52% (58% as of December 31,2022) of the necessary
grapes and wine from third parties through spot contracts. Additionally, the
long-term transactions were 16% (15%as of December 31, 2022) of the total
supply.
We should consider that as of June 30, 2023 wine represents 54%(59% as of June
30, 2022) of the total direct cost of the Wine Operating segment, and supplies
purchased from third parties represented28% (35% as of June 30, 2022).
Raw material Price sensitivity analysis
Total direct costs in the Interim Consolidated Statement of Incomeby Function
for the period ended June 30, 2023 amounted to ThCh$ 548,333,763 (ThCh$
548,642,923 as of June 30, 2022). Assuming a reasonablypossible 8%
increase/decrease in the direct cost of each Operating segment and keeping all
other variables such as exchange rates constant,the aforesaid increase/decrease
would hypothetically result into a loss/income before taxes of ThCh$
30,262,436 (ThCh$ 29,195,230 as ofJune 30, 2022) for the Chile Operating
segment, ThCh$ 9,418,876 (ThCh$ 10,237,619 as of June 30, 2022) for the
International BusinessOperating segment and ThCh$ 4,868,307 (ThCh$ 5,521,173
as of June 30, 2022) for the Wine operating segment.
Credit risk
The credit risk which the Company is exposed to originates from:a) trade
accounts receivable from retail customers, whole sale distributors and
supermarket chains in the domestic market; b) accountsreceivable from exports;
and c) financial instruments maintained with Banks and financial institutions,
such as demand deposits, mutualfund investments, instrument acquired under
resale commitments and derivatives.
Domestic market
The credit risk related to trade accounts receivable from domesticmarkets is
managed by the Credit and Collections Management Department, and is monitored
by the Credit Committee of each business unit.
The domestic market mainly refers to accounts receivables in Chileand
represents 67% of total trade accounts receivable (63% for the year ended
December 31, 2022). The Company has a wide base of customersthat are subject
to the policies, procedures and controls established by the Company. Credit
limits are established for all customerson the basis of an internal rating and
their payment behavior. Outstanding trade accounts receivable are regularly
monitored. In addition,the Company purchases credit insurance that covers 90%
of individually significant accounts receivable balances, coverage that as of
June30, 2023 is equivalent to 83% (82% as of December 31, 2022) of total
accounts receivable.
Overdue, but not impaired, trade accounts receivables representcustomers that
are less than 22 days overdue (30 as of December 31, 2022).
As of June 30, 2023, the Company has approximately 1,023 customers(1,692 as of
December 31, 2022) with more than Ch$ 10 million in debt each, which
altogether represent approximately 85% (87% as of December 31, 2022) of total
trade accounts receivable.There are 207 customers (328 customers as of
December 31, 2022) with balances in excess of Ch$ 50 million each,
representing approximately75% (76% as of December 31, 2022) of the total
accounts receivable. The 90% (88% as of December 31, 2022) of those accounts
receivableare covered by credit insurance.
The Company sells its products through retail customers, wholesaledistributors
and supermarket chains, with a credit worthiness of 99% (99% as of December
31, 2022).
As of June 30, 2023 the Company has no significant guarantees fromits customers.
F-
37
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The Company believes that no additional credit risk provisions otherthan the
individual and collective provisions determined as of June 30, 2023, that
amount to ThCh$ 5,913,505 (ThCh$ 5,689,741 for theyear ended December 31,
2022), are needed since a large percentage of these are covered by insurance
(See
Note10 - Trade and other receivable
).
Exports market
The credit risk related to accounts receivable from exports is managedby the
Head of Credit and Collections and is monitored by the Administration and
Finance Management Department. VSPT's export tradeaccounts receivable
represent 14% of total trade accounts receivable (11% as of December 31,
2022). VSPT has a wide base of customers,in more than eighty countries, which
are subject to the policies, procedures and controls established by VSPT. In
addition, VSPT acquirescredit insurance to cover 90% of individually
significant accounts receivable. This coverage accounts for more than 81% (81%
as of December31, 2022) of total accounts receivable are covered. Pending
payments of trade accounts receivable are regularly monitored. Apart fromthe
credit insurance, having diversified sales in different countries decreases
the credit risk.
As of June 30, 2023 there were 72 customers (68 customers as ofDecember 31,
2022) with more than ThCh$ 65,000 of debt each, which represent 92% (95% as of
December 31, 2022) of VSPT´s total exportmarket accounts receivable.
Regarding VSPT's export customers, overdue, but no impaired,trade accounts
receivables are customers that are less than 43 days overdue (41 days average
as of December 31, 2022).
The Company believes that no credit risk provisions are necessaryother than
the individual and collective provisions determined as of June 30, 2023. See
analysis of accounts receivable aging and lossesdue to impairment of accounts
receivables (See
Note 10 - Trade and other receivable
).
Financial investments and derivatives
Financial investments correspond to time deposits, which are financialinstrument
s acquired with repurchase agreements at fixed interest rate, maturing in less
than three months placed in financial institutionsin Chile, so there are not
exposed to significant market risk. Derivatives are measured at fair value and
traded only in the Chilean market.Since 2018, the amendment to IFRS 9, which
requires changes to the valuation of derivative financial instruments
considering the counterpartyrisk (CVA and DVA), is applied. The CVA and DVA
effect is calculated using the probability of default of the counterparty or
CCU, whenapplicable, assuming a 40% recovery rate for each derivative
instrument. For CCU, the default probability is obtained from the spreadof
corporate bonds with the same credit risk rating than CCU, while for the
counterparty, considers the sum between the Credit DefaultSwap (CDS) of Chile
and the CDS of Citibank in the United States. As of
June 30,2023
the effect is not material.
Tax risk
Our businesses are subject to different taxes in the countries weoperate,
particularly with excise taxes on the consumption of alcoholic and
non-alcoholic beverages. An increase in the rate of theseor any other tax
could negatively affect our sales and profitability.
Liquidity risk
The Company manages liquidity risk at a consolidated level. Cashflows from
operating activities are the main source of liquidity. Additionally, the
Company has the ability to issue debt and equity instrumentsin the capitals
market based on our needs.
In order to manage short-term liquidity, the Company considers projectedcash
flows for a twelve-month moving period and maintains cash and cash equivalents
available to meet its obligations.
Based on current operating performance and its liquidity position,the Company
estimates that cash flows from operation activities and available cash will be
sufficient to finance working capital, capitalinvestments, interest payments,
dividend payment and debt payment requirement for the next 12-months period
and in the foreseeable future.
F-
38
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The Company's financial liabilities maturities as of June30, 2023 and December
31, 2022 based on non-discounted contractual cash flows are summarized as
follows:
As of June 30, 2023 Book value (*) Contractual flows maturities
0 to 3 months 3 months to 1 year Over 1 year to 3 years Over 3 years More than 5 years Total %
to 5 years
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Other financial
liabilities
(no derivative)
Bank borrowings 204,016,830 23,649,469 15,066,547 38,196,376 168,687,306 6,795,442 252,395,140
Bond payable 1,093,339,585 16,996,959 46,899,681 179,588,094 95,528,511 1,072,596,864 1,411,610,109
Lease 43,745,604 2,637,283 6,889,875 12,580,924 6,722,973 26,590,950 55,422,005
liabilities
Deposits for 12,030,404 - 12,030,404 - - - 12,030,404
return of
bottles and
containers
Option contract 25,660,014 - 26,175,781 - - - 26,175,781
liability (1)
Sub-Total 1,378,792,437 43,283,711 107,062,288 230,365,394 270,938,790 1,105,983,256 1,757,633,439
Derivatives
Derivatives not 4,164,151 4,164,151 - - - - 4,164,151
designated
as hedges
Derivatives 13,852,330 2,117,862 2,355,805 5,835,769 5,850,334 - 16,159,770
designated
as hedges
Sub-Total 18,016,481 6,282,013 2,355,805 5,835,769 5,850,334 - 20,323,921
Total 1,396,808,918 49,565,724 109,418,093 236,201,163 276,789,124 1,105,983,256 1,777,957,360
(*) See current and non-current book value in
Note7 - Financial Instruments.
(1) See
Note 1 - General Information, letterC, number (9).
As of December 31, 2022 Book value (*) Contractual flows maturities
0 to 3 months 3 months to 1 year Over 1 year to 3 years Over 3 years More than 5 years Total %
to 5 years
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Other financial
liabilities
(no derivative)
Bank borrowings 219,577,086 32,305,088 108,934,345 21,298,955 68,848,369 15,568,993 246,955
Bond payable 1,112,554,014 17,366,393 33,370,503 178,617,720 109,662,435 1,112,436,605 1,451,453
Lease 40,427,168 2,840,482 7,570,840 11,078,825 4,625,260 25,965,311 52,080
liabilities
Deposits for 11,912,090 - 11,912,090 - - - 11,912
return of
bottles and
containers
Sub-Total 1,384,470,358 52,511,963 161,787,778 210,995,500 183,136,064 1,153,970,909 1,762,402
Derivatives
Derivatives not 3,753,264 3,753,264 - - - - 3,753
designated
as hedges
Derivatives 13,789,496 2,258,210 3,319,743 5,980,373 5,965,808 - 17,524
designated
as hedges
Sub-Total 17,542,760 6,011,474 3,319,743 5,980,373 5,965,808 - 21,277
Total 1,402,013,118 58,523,437 165,107,521 216,975,873 189,101,872 1,153,970,909 1,783,679
,750
,656
,718
,090
,214
,264
,134
,398
,612
(*) See current and non-current book value in
Note7 - Financial Instruments
.
F-
39
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Health crises, pandemics or the outbreakof contagious diseases at a global or
regional level could have a negative impact on our operations and financial
position
A health crisis, pandemic or the outbreak of disease at a globalor regional
level could have a negative impact on our operations and financial position.
The above-mentioned circumstances could impedethe normal operation of the
Company, limit our production and distribution capacity, and/or generate a
contraction in the demand for ourproducts. The degree of impact on our
operations will depend on factors that we cannot predict, such as the
duration, spread, and severityof the health crisis.
Any prolonged restrictive measures put in place in order to controlan outbreak
of a contagious disease or other adverse public health development in any of
our targeted markets may have a material andadverse effect on our business
operations. The extent of the impact of a pandemic on our business and
financial condition will dependlargely on future developments, including the
duration of the pandemic, the impact on financial and capital markets and the
related impacton consumer and industry confidence, all of which are highly
uncertain and could not be accurately predicted.
The Company has in place contingency plans for the care of peopleand
operational continuity to deal with events of this type, but we cannot assure
you that such plans will be sufficient to mitigate amaterial impact on our
results and financial position.
The COVID-19 pandemic accelerated changesin people's lifestyles and consumer
preferences, which may have an impact on our business, financial condition and
results
The COVID-19 pandemic accelerated changes in lifestyle, consumerpreferences
and generated an acceleration of the digital revolution.
These changes impacted consumer preferences, which will requireconstant
innovation to enable us to remain competitive in line with consumer
preferences.
Additionally, these factors affected the availability of talentfor certain job
functions. In the future, we may continue to face competition from other
companies in our efforts to recruit experiencedprofessionals for both key
functions and subcontractors, which may make it difficult to identify
sufficiently skilled and qualified individualsfor new needs or to obtain all
the necessary expertise locally at a reasonable rate due to a shortage of
suitably qualified individuals.The inability to obtain the services of key
personnel and/or outside contractors with critical skills could adversely
affect our business,financial condition and results.
F-
40
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note6 Financial Information as per operating segments
The Company has defined three Operating segments, essentiallydefined with
respect to its revenues in the geographic areas of commercial activity: 1.
Chile, 2. International business and 3. Wine.
These Operating segments mentioned are consistent with theway the Company is
managed and how results are reported by CCU. These segments reflect separate
operating results which are regularlyreviewed by the chief operating decision
maker in order to make decisions about the resources to be allocated to the
segment and assessits performance.
Operating segment Products and services
Chile Beers, non-alcoholic beverages, spirits and SSU.
International Business Beers, cider, non-alcoholic beverages and spirits in Argentina, Uruguay, Paraguay and Bolivia.
Wines Wines, mainly in export markets to more 80 countries.
Corporate revenues and expenses are presented separatelywithin the Other, in
addition in the other presents the elimination of transactions between
segments.
The Company does not have any customers representing morethan 10% of
consolidated revenues.
The detail of the segments is presented in the followingtables:
F-
41
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
a) Information as per operating segments for the six-months periods ended June 30, 2023 and 2022:
Chile International Business Wines Others
2023 2022 2023 2022 2023 2022 2023 2022 2023
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh
Net sales 844,310,572 766,038,159 335,191,882 344,627,329 107,633,756 126,676,831 (3) - 1,287,13
Other income 10,556,445 10,739,872 4,464,734 6,303,498 2,927,061 3,510,873 1,188,015 1,071,253 19,13
Sales 9,328,524 9,989,468 242,033 1,506,231 6,455,218 9,435,403 (16,025,775) (20,931,102)
revenue
between
segments
Net sales 864,195,541 786,767,499 339,898,649 352,437,058 117,016,035 139,623,107 (14,837,763) (19,859,849) 1,306,27
Change % 9.8 - (3.6) - (16.2) - - -
Cost of (466,988,367) (458,158,630) (165,327,530) (178,758,369) (77,777,208) (86,744,736) 8,181,144 13,727,008 (701,911
sales
% of Net 54.0 58.2 48.6 50.7 66.5 62.1 - -
sales
Gross margin 397,207,174 328,608,869 174,571,119 173,678,689 39,238,827 52,878,371 (6,656,619) (6,132,841) 604,36
% of Net 46.0 41.8 51.4 49.3 33.5 37.9 - -
sales
MSD&A (1) (289,605,819) (245,227,901) (156,192,845) (160,904,212) (35,772,755) (36,399,790) (5,321,061) (3,115,979) (486,892
% of Net 33.5 31.2 46.0 45.7 30.6 26.1 - -
sales
Other (861,065) (93,047) 82,345 592,929 316,967 252,374 167,556 86,367 (294
operating
income
(expenses)
Adjusted 106,740,290 83,287,921 18,460,619 13,367,406 3,783,039 16,730,955 (11,810,124) (9,162,453) 117,17
operating
result (2)
Change % 28.2 - 38.1 - (77.4) - - -
% of Net 12.4 10.6 5.4 3.8 3.2 12.0 - -
sales
Net - - - - - - - - (15,599
financial
expense
Share of net - - - - - - - - (9,998
income
(loss)
of joint
ventures and
associates
accounted
for
using the
equity
method
Gains - - - - - - - - (11,444
(losses) on
exchange
differences
Result - - - - - - - - (5,189
as per
adjustment
units
Other gains - - - - - - - - (10,326
(losses)
Income 64,61
before taxes
Income tax (6,652
(expense)
benefit
Net income 57,96
for period
Non-controlling 3,53
interests
Net income 54,42
attributable
to
equity
holders
of the
parent
Depreciation 37,126,421 33,868,442 19,221,849 20,900,520 6,256,288 6,526,874 2,724,166 2,077,004 65,32
and
amortization
ORBDA (3) 143,866,711 117,156,363 37,682,468 34,267,926 10,039,327 23,257,829 (9,085,958) (7,085,449) 182,50
Change % 22.8 - 10.0 - (56.8) - - -
% of Net 16.6 14.9 11.1 9.7 8.6 16.7 - -
sales
Total
2022
$ ThCh$
6,207 1,237,342,319
6,255 21,625,496
- -
2,462 1,258,967,815
3.8 -
,961) (709,934,727)
53.7 56.4
0,501 549,033,088
46.3 43.6
,480) (445,647,882)
37.3 35.4
,197) 838,623
3,824 104,223,829
12.4 -
9.0 8.3
,847) (16,883,407)
,680) (4,401,707)
,734) (9,836,230)
,463) (5,072,346)
,347) 4,525,273
4,753 72,555,412
,246) (9,544,229)
2,507 63,011,183
8,018 8,921,861
4,489 54,089,322
8,724 63,372,840
2,548 167,596,669
8.9 -
14.0 13.3
(1) MSD&A included Marketing, Selling, Distributionand Administrative expenses.
(2) Adjusted operating result (for management purposes wehave defined it as
Net income before net financial expense, gain (losses) of joint venture
and associates accounted for using the equitymethod, gains (losses) on
exchange differences, result as per adjustment units and income taxes).
(3) ORBDA (for management purposes we have defined it asAdjusted Operating Result before Depreciation and Amortization).
F-
42
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
b) Information as per operating segments for the three-months periods ended June 30, 2023 and 2022:
Chile International Business Wines Others T
2023 2022 2023 2022 2023 2022 2023 2022 2023
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Net sales 366,532,442 320,049,288 139,389,825 161,288,810 58,691,549 68,433,168 - - 564,613,81
Other income 4,663,385 4,599,949 3,011,292 1,813,702 1,529,216 1,851,327 423,994 466,640 9,627,88
Sales 5,181,841 3,633,939 110,662 786,325 4,148,526 5,333,013 (9,441,029) (9,753,277)
revenue
between
segments
Net sales 376,377,668 328,283,176 142,511,779 163,888,837 64,369,291 75,617,508 (9,017,035) (9,286,637) 574,241,70
Change % 14.7 - (13.0) - (14.9) - - - 2.
Cost of (210,703,652) (201,238,777) (77,023,615) (90,036,911) (42,014,616) (47,737,695) 4,915,499 5,818,909 (324,826,384
sales
% of Net 56.0 61.3 54.0 54.9 65.3 63.1 - - 56.
sales
Gross margin 165,674,016 127,044,399 65,488,164 73,851,926 22,354,675 27,879,813 (4,101,536) (3,467,728) 249,415,31
% of Net 44.0 38.7 46.0 45.1 34.7 36.9 - - 43.
sales
MSD&A (1) (139,867,382) (120,877,777) (73,855,636) (85,283,513) (19,215,842) (19,521,737) (2,749,880) (1,787,486) (235,688,740
% of Net 37.2 36.8 51.8 52.0 29.9 25.8 - - 41.
sales
Other (1,004,179) 130,040 38,284 201,419 197,996 106,147 (7,135) 53,490 (775,034
operating
income
(expenses)
Adjusted 24,802,455 6,296,662 (8,329,188) (11,230,168) 3,336,829 8,464,223 (6,858,551) (5,201,724) 12,951,54
operating
result (2)
Change % 293.9 - 25.8 - (60.6) - - - 875.
% of Net 6.6 1.9 (5.8) (6.9) 5.2 11.2 - - 2.
sales
Net - - - - - - - - (5,541,635
financial
expense
Share of net - - - - - - - - (6,179,910
income
(loss)
of joint
ventures and
associates
accounted
for
using the
equity
method
Foreign - - - - - - - - (7,117,365
currency
exchange
differences
Result - - - - - - - - (3,533,385
as per
adjustment
units
Other gains - - - - - - - - (2,873,551
(losses)
Income (12,294,301
before taxes
Income tax 8,695,38
(expense)
benefit
Net income (3,598,912
for period
Non-controlling 344,58
interests
Net income (3,943,498
attributable
to
equity
holders
of the
parent
Depreciation 19,303,329 17,414,790 10,204,612 12,302,344 3,206,045 3,324,180 1,460,309 1,100,575 34,174,29
and
amortization
ORBDA (3) 44,105,784 23,711,452 1,875,424 1,072,176 6,542,874 11,788,403 (5,398,242) (4,101,149) 47,125,84
Change % 86.0 - 74.9 - (44.5) - - - 45.
% of Net 11.7 7.2 1.3 0.7 10.2 15.6 - - 8.
sales
otal
2022
ThCh$
6 549,771,266
7 8,731,618
- -
3 558,502,884
8 -
) (333,194,474)
6 59.7
9 225,308,410
4 40.3
) (227,470,513)
0 40.7
) 491,096
5 (1,671,007)
1 -
3 (0.3)
) (10,512,883)
) (3,837,066)
) (11,430,455)
) (1,480,671)
) 13,516,855
) (15,415,227)
9 8,020,380
) (7,394,847)
6 3,060,295
) (10,455,142)
5 34,141,889
0 32,470,882
1 -
2 5.8
(1) MSD&A included Marketing, Selling, Distributionand Administrative expenses.
(2) Adjusted operating result (for management purposes wehave defined it as
Net income before net financial expense, gain (losses) of joint venture
and associates accounted for using the equitymethod, gains (losses) on
exchange differences, result as per adjustment units and income taxes).
(3) ORBDA (for management purposes we have defined it asAdjusted Operating Result before Depreciation and Amortization).
F-
43
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Sales information by geographic location
Net sales per geographical location For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Chile (1) 955,892,527 890,852,796 425,673,088 385,318,281
Argentina (2) 300,215,908 319,662,530 124,715,487 150,749,133
Uruguay 14,805,602 12,322,720 7,072,035 5,535,923
Paraguay 27,304,530 26,766,558 13,401,787 12,521,523
Bolivia 8,053,895 9,363,211 3,379,306 4,378,024
Foreign countries 350,379,935 368,115,019 148,568,615 173,184,603
Total 1,306,272,462 1,258,967,815 574,241,703 558,502,884
(1) Includes net sales correspond to Corporate Support Unit and eliminationsbetween geographical
locations. Additionally, includes net sales made in Chile of the Wines Operating segment.
(2) Includes net sales made by the subsidiaries Finca La Celia S.A. and LosHuemules S.R.L.,
registered under the Wines Operating segment and Chile Operating segment, respectively.
Sales information by customer
Net Sales For the six-months periods ended as of June 30, For the three-monts periods ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Domestic sales 1,253,145,500 1,185,548,038 546,601,557 520,484,954
Exports sales 53,126,962 73,419,777 27,640,146 38,017,930
Total 1,306,272,462 1,258,967,815 574,241,703 558,502,884
Sales information by product category
Sales information by product category For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Alcoholic business 840,292,223 835,338,205 367,941,424 375,841,476
Non-alcoholic business 446,843,984 402,004,114 196,672,392 173,929,790
Others (1) 19,136,255 21,625,496 9,627,887 8,731,618
Total 1,306,272,462 1,258,967,815 574,241,703 558,502,884
(1) Others consist mainly of sales of by-products and packaging including bottles,pallets, and glasses.
Depreciation and amortization as per operatingsegments
Depreciation and amortization For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Chile operating segment 37,126,421 33,868,442 19,303,329 17,414,790
International Business 19,221,849 20,900,520 10,204,612 12,302,344
operating segment
Wines operating segment 6,256,288 6,526,874 3,206,045 3,324,180
Others (1) 2,724,166 2,077,004 1,460,309 1,100,575
Total 65,328,724 63,372,840 34,174,295 34,141,889
(1) Includes depreciation and amortization corresponding to the Corporate SupportUnits.
F-
44
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Cash flows Operating Segments
Cash flows Operating Segments For the six-months periods ended as of June 30,
2023 2022
ThCh$ ThCh$
Cash flows from operating activities 147,073,591 (1,357,216)
Chile operating segment 86,517,373 (46,808,264)
International business operating segment 51,826,720 5,148,469
Wines operating segment 5,983,208 1,661,605
Others (1) 2,746,290 38,640,974
Cash flows from investing activities (59,893,912) (103,300,593)
Chile operating segment (13,608,891) (46,369,192)
International business operating segment (19,467,281) (51,610,392)
Wines operating segment (4,638,133) (5,331,493)
Others (1) (22,179,607) 10,484
Cash flows from financing activities (39,869,688) 438,277,545
Chile operating segment (53,783,397) 36,853,859
International business operating segment 1,556,879 16,005,599
Wines operating segment 4,370,075 (26,350,688)
Others (1) 7,986,755 411,768,775
(1) Others include Corporate Support Units.
Capital expenditures as per operating segments
Capital expenditures (property, plant and equipment and software additions) For the six-months periods ended as of June 30,
2023 2022
ThCh$ ThCh$
Chile operating segment 28,440,509 38,274,438
International Business operating segment 18,885,754 24,526,952
Wines operating segment 4,651,377 5,352,308
Others (1) 1,519,036 10,649,788
Total 53,496,676 78,803,486
(1) Others include the capital investments corresponding to the Corporate SupportUnits.
Assets as per operating segments
Assets as per Operating segment As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Chile operating segment 1,652,587,760 1,705,948,397
International Business operating segment 655,133,933 742,411,775
Wines operating segment 449,959,496 443,365,402
Others (1) 680,420,389 703,353,405
Total 3,438,101,578 3,595,078,979
(1) Includes assets corresponding to the Corporate Support Units.
F-
45
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Assets per geographic location
Assets per geographical location As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Chile (1) 2,724,560,210 2,799,011,955
Argentina (2) 599,282,029 658,747,694
Uruguay 31,186,834 31,045,777
Paraguay 41,967,853 66,096,952
Bolivia 38,861,373 38,276,794
Others (3) 2,243,279 1,899,807
Total 3,438,101,578 3,595,078,979
(1) Includes the assets corresponding to the Corporate Support Units and
eliminationsbetween geographic location and investments in associates
and joint ventures. Additionally, includes part of Wines Operating
segment andexcludes its argentine subsidiary Finca La Celia S.A.
(2) Includes the assets of the subsidiaries Finca La Celia S.A. and Los HuemulesS.R.L.
registered under the Wines Operating segment and Chile Operating segment, respectively.
(3) Includes the assets of the subsidiaries VSPT UD LLC, VSPT UK Ltd. and VSPTWinegroup (Shangai) Limited.
Liabilities as per operating segments
Liabilities as per Operating segment As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Chile operating segment 756,588,866 814,262,800
International Business operating segment 260,358,950 316,320,502
Wines operating segment 168,761,484 161,308,309
Others (1) 841,369,385 867,218,315
Total 2,027,078,685 2,159,109,926
(1) Others include liabilities corresponding to the Corporate Support Units.
Operating Segment's additional information
The followingis a reconciliation of on Net income for the period, the main
comparable IFRS measure to Adjusted Operating Result for the periods ended
June 30, 2023 and 2022:
For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Net income of period 57,962,507 63,011,183 (3,598,912) (7,394,847)
Add (Subtract):
Other gains (losses) 10,326,347 (4,525,273) 2,873,551 (13,516,855)
Finance income (23,851,952) (12,853,463) (13,458,819) (6,505,170)
Finance costs 39,451,799 29,736,870 19,000,454 17,018,053
Share of net income (loss) of joint ventures and 9,998,680 4,401,707 6,179,910 3,837,066
associates accounted for using the equity method
Gains (losses) on 11,444,734 9,836,230 7,117,365 11,430,455
exchange differences
Result as per 5,189,463 5,072,346 3,533,385 1,480,671
adjustment units
Income tax 6,652,246 9,544,229 (8,695,389) (8,020,380)
(expense) benefit
Adjusted operating result 117,173,824 104,223,829 12,951,545 (1,671,007)
Depreciation and 65,328,724 63,372,840 34,174,295 34,141,889
amortization
ORBDA 182,502,548 167,596,669 47,125,840 32,470,882
F-
46
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Thefollowing is a reconciliation of the consolidated amounts presented for
MSD&A with the comparable amounts presented on the face ofour consolidated
statement of income:
For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Consolidated
statement of income
Distribution costs (255,358,964) (231,398,044) (116,809,785) (108,715,375)
Administrative expenses (84,834,858) (81,141,072) (52,476,442) (45,691,984)
Other expenses by function (148,642,461) (134,198,950) (68,025,521) (73,686,271)
Other expenses included in ´Other 1,943,803 1,090,184 1,623,008 623,117
expenses by function´
Total MSD&A (486,892,480) (445,647,882) (235,688,740) (227,470,513)
Note7 Financial Instruments
Financial instruments categories
The carrying amounts of each financial instrument category are detailedas
follows:
As of June 30, 2023 As of December 31, 2022
Current Non-current Current Non-current
ThCh$ ThCh$ ThCh$ ThCh$
Derivatives not designated as hedges 230,651 - 421,051 -
Marketable securities and investments in other companies 777,293 - 11,956,585 -
Derivatives designated as hedges 24,585,290 37,847,395 33,280,356 37,054,245
Total other financial assets 25,593,234 37,847,395 45,657,992 37,054,245
Accounts receivavble - trade and other current receivables (net) 310,599,397 3,387,097 445,263,536 3,941,760
Accounts receivable from related parties 5,197,480 42,506 6,204,099 42,506
Total accounts receivables 315,796,877 3,429,603 451,467,635 3,984,266
Sub-Total financial assets 341,390,111 41,276,998 497,125,627 41,038,511
Cash and cash equivalents 591,015,446 - 597,081,675 -
Total financial assets 932,405,557 41,276,998 1,094,207,302 41,038,511
Bank borrowings 29,621,543 174,395,287 134,737,116 84,839,970
Bond payable 44,578,074 1,048,761,511 30,871,086 1,081,682,928
Deposits for return of bottles and containers 12,030,404 - 11,912,090 -
Total financial liabilities measured at amortized cost 86,230,021 1,223,156,798 177,520,292 1,166,522,898
Derivatives not designated as hedges 4,164,151 - 3,753,264 -
Derivatives designated as hedges 4,166,922 9,685,408 4,605,695 9,183,801
Option contract liability (1) 25,660,014 - - -
Total financial derivative liabilities 33,991,087 9,685,408 8,358,959 9,183,801
Total other financial liabilities (*) 120,221,108 1,232,842,206 185,879,251 1,175,706,699
Lease Liabilities 8,112,477 35,633,127 9,120,616 31,306,552
Total lease liabilities (**) 8,112,477 35,633,127 9,120,616 31,306,552
Accounts receivavble - trade and other current receivables 352,530,301 7,946 491,315,277 20,945
Accounts payable to related parties 35,488,377 323,563 34,282,408 -
Total commercial obligations and other accounts payable 388,018,678 331,509 525,597,685 20,945
Total financial liabilities 516,352,263 1,268,806,842 720,597,552 1,207,034,196
(1) See
Note 1 - General information, letterC, number (9).
(*) See
Note 21 - Other financialliabilities
.
(**) See
Note 22 - Lease liabilities
.
F-
47
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Fair value of Financial instruments
The following tables show fair values, based on financial instrumentcategories,
compared to the carrying amount included in the Interim Consolidated
Statements of Financial Position:
a) Financial assets and liabilities are detailed as follows:
As of June 30, 2023 As of December 31, 2022
Book Value Fair Value Book Value Fair Value
ThCh$ ThCh$ ThCh$ ThCh$
Derivatives not designated as hedges 230,651 230,651 421,051 421,051
Marketable securities and investments in other companies 777,293 777,293 11,956,585 11,956,585
Derivatives designated as hedges 62,432,685 62,432,685 70,334,601 70,334,601
Total other financial assets 63,440,629 63,440,629 82,712,237 82,712,237
Accounts receivavble - trade and other current receivables (net) 313,986,494 313,986,494 449,205,296 449,205,296
Accounts receivable from related parties 5,239,986 5,239,986 6,246,605 6,246,605
Total accounts receivables 319,226,480 319,226,480 455,451,901 455,451,901
Sub-Total financial assets 382,667,109 382,667,109 538,164,138 538,164,138
Cash and cash equivalents 591,015,446 591,015,446 597,081,675 597,081,675
Total financial assets 973,682,555 973,682,555 1,135,245,813 1,135,245,813
Bank borrowings 204,016,830 208,953,585 219,577,086 222,603,740
Bond payable 1,093,339,585 978,811,927 1,112,554,014 1,012,325,805
Deposits for return of bottles and containers 12,030,404 12,030,404 11,912,090 11,912,090
Total financial liabilities measured at amortized cost 1,309,386,819 1,199,795,916 1,344,043,190 1,246,841,635
Derivatives not designated as hedges 4,164,151 4,164,151 3,753,264 3,753,264
Derivatives designated as hedges 13,852,330 13,852,330 13,789,496 13,789,496
Option contract liability (1) 25,660,014 25,660,014 - -
Total financial derivative liabilities 43,676,495 43,676,495 17,542,760 17,542,760
Total other financial liabilities (*) 1,353,063,314 1,243,472,411 1,361,585,950 1,264,384,395
Lease Liabilities 43,745,604 43,745,604 40,427,168 40,427,168
Total lease liabilities (**) 43,745,604 43,745,604 40,427,168 40,427,168
Accounts receivavble - trade and other current receivables 352,538,247 352,538,247 491,336,222 491,336,222
Accounts payable to related parties 35,811,940 35,811,940 34,282,408 34,282,408
Total commercial obligations and other accounts payable 388,350,187 388,350,187 525,618,630 525,618,630
Total financial liabilities 1,785,159,105 1,675,568,202 1,927,631,748 1,830,430,193
(1) See
Note 1 - General information, letterC, number (9).
(*) See
Note 21 - Other financialliabilities
.
(**) See
Note 22 - Lease liabilities
.
The carrying amount of cash and cash equivalents, other financialassets,
deposits for return of bottles and containers and lease liabilities
approximate their fair value due to their short-term natureor by its valuation
methodology while loans receivable and accounts receivable are due to the fact
that any collection loss is alreadyreflected in the impairment loss provision.
The fair value of non-derivative financial assets and liabilitiesthat are not
quoted in active markets are estimated through the use of discounted cash
flows calculated on market variables observed asof the date of the financial
statements. The fair value of derivative instruments is estimated through the
discount of future cash flows,determined according to information observed in
the market or to variables and prices obtained from third parties.
The fair value of bank borrowings and Bonds payable has hierarchylevel 2 of
fair value.
F-
48
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
b) Financial instruments by category:
As of June 30, 2023 Fair value with Financial assets measured Hedge derivatives Total
changes in income at amortized cost
ThCh$ ThCh$ ThCh$ ThCh$
Financial assets
Derivatives not 230,651 - - 230,651
designated as hedges
Marketable securities and 777,293 - - 777,293
investments in other companies
Derivatives - - 62,432,685 62,432,685
designated as hedges
Total other 1,007,944 - 62,432,685 63,440,629
financial assets
Cash and cash equivalents - 591,015,446 - 591,015,446
Trade and other - 313,986,494 - 313,986,494
receivable (net)
Accounts receivable - 5,239,986 - 5,239,986
from related parties
Total financial assets 1,007,944 910,241,926 62,432,685 973,682,555
As of June 30, 2023 Fair value with Hedge derivatives Financial liabilities Total
changes in income measured at amortized cost
ThCh$ ThCh$ ThCh$ ThCh$
Financial liabilities
Bank borrowings - - 204,016,830 204,016,830
Bond payable - - 1,093,339,585 1,093,339,585
Deposits for return of - - 12,030,404 12,030,404
bottles and containers
Derivatives not 4,164,151 - - 4,164,151
designated as hedges
Derivatives - 13,852,330 - 13,852,330
designated as hedges
Option contract liability 25,660,014 - - 25,660,014
Total Other financial 29,824,165 13,852,330 1,309,386,819 1,353,063,314
liabilities
Lease liabilities - - 43,745,604 43,745,604
Trade and other - - 352,538,247 352,538,247
current payables
Accounts payable - - 35,811,940 35,811,940
to related parties
Total financial 29,824,165 13,852,330 1,741,482,610 1,785,159,105
liabilities
As of December 31, 2022 Fair value with Financial assets measured Hedge derivatives Total
changes in income at amortized cost
ThCh$ ThCh$ ThCh$ ThCh$
Financial assets
Derivatives not 421,051 - - 421,051
designated as hedges
Marketable securities and 11,956,585 - - 11,956,585
investments in other companies
Derivatives - - 70,334,601 70,334,601
designated as hedges
Total other 12,377,636 - 70,334,601 82,712,237
financial assets
Cash and cash equivalents - 597,081,675 - 597,081,675
Trade and other - 449,205,296 - 449,205,296
receivable (net)
Accounts receivable - 6,246,605 - 6,246,605
from related parties
Total financial assets 12,377,636 1,052,533,576 70,334,601 1,135,245,813
F-
49
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
As of December 31, 2022 Fair value with Hedge derivatives Financial liabilities Total
changes in income measured at amortized cost
ThCh$ ThCh$ ThCh$ ThCh$
Financial liabilities
Bank borrowings - - 219,577,086 219,577,086
Bond payable - - 1,112,554,014 1,112,554,014
Deposits for return of - - 11,912,090 11,912,090
bottles and containers
Derivatives not 3,753,264 - - 3,753,264
designated as hedges
Derivatives - 13,789,496 - 13,789,496
designated as hedges
Total Other financial 3,753,264 13,789,496 1,344,043,190 1,361,585,950
liabilities
Lease liabilities - - 40,427,168 40,427,168
Trade and other - - 491,336,222 491,336,222
current payables
Accounts payable - - 34,282,408 34,282,408
to related parties
Total financial 3,753,264 13,789,496 1,910,088,988 1,927,631,748
liabilities
F-
50
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Derivative Instruments
The detail of maturities, number of derivative agreements, contractednominal
amounts, fair values and the classification of such derivative instruments by
type of agreement at the closing of each period,are detailed as follows:
As of June 30, 2023 As of December 31, 2022
Number of Nominal amounts Asset Liability Number of Nominal amounts Asset Liability
agreements thousand agreements thousand
ThCh$ ThCh$ ThCh$ ThCh$
Cross currency 4 9,273 59,134,156 13,497,869 5 11,455 69,024,803 13,389,059
swaps
UF/CLP
Less than - - 24,585,290 3,812,461 - - 33,280,356 4,205,258
a year
Between 1 4 9,273 18,251,682 9,685,408 5 11,455 18,986,487 9,183,801
and 5 years
More than - - 16,297,184 - - - 16,757,960 -
5 years
Cross currency 1 296 1,847,491 36,728 1 296 1,243,303 45,392
swaps
UF/EURO
Less than - - - 36,728 - - - 45,392
a year
Between 1 1 296 1,847,491 - 1 296 1,243,303 -
and 5 years
Cross currency 1 479 1,451,038 317,733 1 479 66,495 355,045
swaps
UF/USD
Less than - - - 317,733 - - - 355,045
a year
Between 1 1 479 1,451,038 - 1 479 66,495 -
and 5 years
Subtotal derivados 6 62,432,685 13,852,330 7 70,334,601 13,789,496
de cobertura
Forwards 21 197,716 214,876 4,145,222 27 154,156 293,023 3,699,120
USD
Less than 21 197,716 214,876 4,145,222 27 154,156 293,023 3,699,120
a year
Forwards 4 9,240 8,926 2,523 6 12,860 13,999 52,421
Euro
Less than 4 9,240 8,926 2,523 6 12,860 13,999 52,421
a year
Forwards 2 1,280 346 12,599 2 1,870 90,550 -
CAD
Less than 2 1,280 346 12,599 2 1,870 90,550 -
a year
Forwards 3 852 6,503 3,807 3 774 23,479 1,723
GBP
Less than 3 852 6,503 3,807 3 774 23,479 1,723
a year
Subtotal derivatives 30 230,651 4,164,151 38 421,051 3,753,264
with effects on income
Total 36 62,663,336 18,016,481 45 70,755,652 17,542,760
instruments
These derivative agreements have been entered into as a hedge ofexchange rate
risk exposure. In the case of forwards, the Company does not comply with the
formal requirements for hedging designation;consequently, their effects are
recorded in Income, in Other gains (losses).
In the case of Cross Currency Swap, these qualify as cash flow hedgesof the
cash flows related to loans from Banco de Chile and Scotiabank Chile. See
additional disclosures in
Note21 - Other financial liabilities
.
F-
51
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
As of June 30, 2023
Entity Nature of Assets Liabilities Fair value of net Maturity
risks covered asset (liabilities)
Currency Amount Currency Amount Amount
ThCh$ ThCh$ ThCh$
Banco Santander Flow by exchange rate UF 82,385,506 CLP 80,570,073 1,815,433 03-15-2032
- Chile on bonds payable
Banco Santander Flow by exchange rate UF 108,681,124 CLP 87,196,703 21,484,421 08-10-2023
- Chile on bonds payable
Banco Santander Flow by exchange rate UF 104,041,753 CLP 83,866,270 20,175,483 06-01-2027
- Chile on bonds payable
Scotiabank Chile Flow by exchange rate UF 49,482,701 CLP 47,321,751 2,160,950 03-15-2030
on bonds payable
Scotiabank Chile Flow by exchange rate UF 16,624,382 USD 15,491,077 1,133,305 06-01-2025
on bonds payable
Scotiabank Chile Flow by exchange rate UF 10,289,627 EUR 8,478,864 1,810,763 06-02-2025
on bonds payable
As of December 31, 2022
Entity Nature of Assets Liabilities Fair value of net Maturity
risks covered asset (liabilities)
Currency Amount Currency Amount Amount
ThCh$ ThCh$ ThCh$
Banco Santander Flow by exchange rate UF 82,322,384 CLP 80,933,348 1,389,036 03-15-2032
- Chile on bonds payable
Banco Santander Flow by exchange rate UF 105,013,688 CLP 85,070,350 19,943,338 08-10-2023
- Chile on bonds payable
Banco Santander Flow by exchange rate UF 100,564,068 CLP 81,917,436 18,646,632 06-01-2027
- Chile on bonds payable
Scotiabank Chile Flow by exchange rate UF 69,182,555 CLP 55,845,532 13,337,023 06-01-2023
on bonds payable
Scotiabank Chile Flow by exchange rate UF 51,120,767 CLP 48,801,052 2,319,715 03-15-2030
on bonds payable
Scotiabank Chile Flow by exchange rate UF 16,322,595 USD 16,611,145 (288,550) 06-01-2025
on bonds payable
Scotiabank Chile Flow by exchange rate UF 10,102,729 EUR 8,904,818 1,197,911 06-02-2025
on bonds payable
The Interim Consolidated Statement of Other Comprehensive Incomeincludes under
the caption cash flow hedge, for the six-months ended June 30, 2023 a charge
before income taxes of ThCh$ 6,522,617 (creditof ThCh$ 2,408,067 as of June
30, 2022), related to the fair value of Cross Currency Swap derivatives
instruments.
F-
52
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Fair value hierarchies
The financial instruments recorded at fair value in the Statementof Financial
Position are classified as follows, depending on the method used to obtain
their fair values:
Level 1 Fair values obtained through direct reference to quotedmarket prices,
without any adjustment.
Level 2 Fair values obtainedthrough the use of valuation models accepted in
the market and based on prices other than those of Level 1, which may be
directly or indirectlyobserved as of the measurement date (adjusted prices).
Level 3 Fair values obtainedthrough internally developed models or
methodologies that use information which may not be observed or which is
illiquid.
The fair value of financial instruments recorded at fair value inthe Interim
Consolidated Financial Statements, is detailed as follows:
As of June 30, 2023 Recorded fair value Fair value hierarchy
level 1 level 2 level 3
ThCh$ ThCh$ ThCh$ ThCh$
Derivatives not designated as hedges 230,651 - 230,651 -
Marketable securities and investments in other companies 777,293 777,293 - -
Derivatives designated as hedges 62,432,685 - 62,432,685 -
Total other financial assets 63,440,629 777,293 62,663,336 -
Derivatives not designated as hedges 4,164,151 - 4,164,151 -
Derivative designated as hedges 13,852,330 - 13,852,330 -
Option contract liability 25,660,014 - 25,660,014 -
Total financial derivative liabilities 43,676,495 - 43,676,495 -
As of December 31, 2022 Recorded fair value Fair value hierarchy
level 1 level 2 level 3
ThCh$ ThCh$ ThCh$ ThCh$
Derivatives not designated as hedges 421,051 - 421,051 -
Marketable securities and investments in other companies 11,956,585 11,956,585 - -
Derivatives designated as hedges 70,334,601 - 70,334,601 -
Total other financial assets 82,712,237 11,956,585 70,755,652 -
Derivatives not designated as hedges 3,753,264 - 3,753,264 -
Derivative designated as hedges 13,789,496 - 13,789,496 -
Total financial derivative liabilities 17,542,760 - 17,542,760 -
During the period ended June 30, 2023, the Company has not madeany significant
instrument transfers between levels 1 and 2.
Credit quality of financial assets
The Company uses two credit assessment systems for its clients:a) Clients with
loan insurance are assessed according to the external risk criteria (trade
reports, non-compliance and protested documentsthat are available in the local
market), payment capability and equity situation required by the insurance
company to grant a loan coverage;b) All other the clients are assessed through
an ABC risk model, which considers internal risk (non-compliance and protested
documents),external risk (trade reports, non-compliance and protested
documents that are available in the local market) and payment capacity
andequity situation. The uncollectible rate during the last two years has not
been significant.
F-
53
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note8 Cash and cashequivalents
Cash and cash equivalent balances are detailed as follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Cash on hand 328,843 239,542
Bank balances 269,690,867 179,097,293
Cash 270,019,710 179,336,835
Time deposits 264,661,604 389,303,495
Securities purchased under resale agreements 52,375,255 12,115,866
Investments in mutual funds 3,958,877 16,325,479
Short term investments classified as cash equivalents 56,334,132 28,441,345
Cash equivalents 320,995,736 417,744,840
Total 591,015,446 597,081,675
F-
54
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The composition of cash and cash equivalents by currency as of June30, 2023,
is detailed as follows:
Chilean Peso US Dollar Euro Argentine Uruguayan Paraguayan Bolivian Others Total
Peso Peso Guarani
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Cash on hand 78,172 1,401 - 2,720 - 123,465 123,085 - 328,843
Bank balances 26,098,630 227,365,892 2,038,392 1,327,085 1,825,739 7,702,878 3,064,789 267,462 269,690,867
Cash 26,176,802 227,367,293 2,038,392 1,329,805 1,825,739 7,826,343 3,187,874 267,462 270,019,710
Time deposits 120,288 248,260,206 - 16,281,110 - - - - 264,661,604
Securities purchased 52,375,255 - - - - - - - 52,375,255
under resale agreements
Investments in - - - 3,958,877 - - - - 3,958,877
mutual funds
Short term investments 52,375,255 - - 3,958,877 - - - - 56,334,132
classified as cash equivalents
Cash 52,495,543 248,260,206 - 20,239,987 - - - - 320,995,736
equivalents
Total 78,672,345 475,627,499 2,038,392 21,569,792 1,825,739 7,826,343 3,187,874 267,462 591,015,446
The composition of cash and cash equivalents by currency as of December31,
2022, is detailed as follows:
Chilean Peso US Dollar Euro Argentine Uruguayan Paraguayan Bolivian Others Total
Peso Peso Guarani
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Cash on hand 77,160 2,553 - 9,494 - - 150,335 - 239,542
Bank balances 34,284,961 135,390,795 555,639 2,982,055 1,170,848 2,681,005 532,059 1,499,931 179,097,293
Cash 34,362,121 135,393,348 555,639 2,991,549 1,170,848 2,681,005 682,394 1,499,931 179,336,835
Time deposits 1,702,165 387,601,330 - - - - - - 389,303,495
Securities purchased 12,115,866 - - - - - - - 12,115,866
under resale agreements
Investments in - - - 16,325,479 - - - - 16,325,479
mutual funds
Short term investments 12,115,866 - - 16,325,479 - - - - 28,441,345
classified as cash equivalents
Cash 13,818,031 387,601,330 - 16,325,479 - - - - 417,744,840
equivalents
Total 48,180,152 522,994,678 555,639 19,317,028 1,170,848 2,681,005 682,394 1,499,931 597,081,675
F-
55
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The composition of time deposits is detailed as follows:
As of June 30, 2023:
Financial entity Date of placement Due date Currency Amount Monthly interest rate (%)
ThCh$
Banco BBVA - Argentina 06-05-2023 09-03-2023 ARS 6,632,964 7.25
Banco de Credito e Inversiones - Chile 06-22-2023 08-07-2023 CLP 120,288 0.90
Banco Patagonia - Argentina 06-14-2023 07-14-2023 ARS 1,626,926 7.50
Banco Santander - Argentina 06-09-2023 07-10-2023 ARS 6,584,708 7.50
Banco Santander - Argentina 06-22-2023 07-24-2023 ARS 1,436,512 7.50
Citibank N.A. - United States 05-23-2023 07-24-2023 USD 122,517,467 0.43
Sumitomo Mitsui Banking Corporation - United States 06-02-2023 08-02-2023 USD 41,583,973 0.44
Sumitomo Mitsui Banking Corporation - United States 06-26-2023 08-25-2023 USD 84,158,766 0.44
Total 264,661,604
As of December 31, 2022:
Financial entity Date of placement Due date Currency Amount Monthly interest rate (%)
ThCh$
Citibank N.A. - United States 12-19-2022 01-19-2023 USD 214,295,932 0.39
Scotia Corredora de Bolsa Chile S.A. 12-27-2022 01-03-2023 CLP 1,702,165 0.96
Sumitomo Mitsui Banking Corporation - United States 11-03-2022 01-03-2023 USD 43,316,249 0.35
Sumitomo Mitsui Banking Corporation - United States 12-27-2022 01-26-2023 USD 129,989,149 0.37
Total 389,303,495
F-
56
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The composition of securities purchased under resale agreementsis detailed as
follows:
As of June 30, 2023:
Financial entity Underlying Asset Date of placement Due date Currency Amount Monthly interest
(Time Deposit) (*) rate (%)
ThCh$
BancoEstado S.A. Corredores Banco Central 06-30-2023 07-11-2023 CLP 4,249,032 0.92
de Bolsa - Chile de Chile
BancoEstado S.A. Corredores Banco Consorcio 06-30-2023 07-11-2023 CLP 968 0.92
de Bolsa - Chile - Chile
BancoEstado S.A. Corredores Banco de Chile 06-22-2023 07-04-2023 CLP 1,262,211 0.92
de Bolsa - Chile
BancoEstado S.A. Corredores Banco de Credito e 06-29-2023 07-06-2023 CLP 1,200,366 0.92
de Bolsa - Chile Inversiones - Chile
BancoEstado S.A. Corredores Banco de Credito e 06-29-2023 07-06-2023 CLP 1,600,488 0.92
de Bolsa - Chile Inversiones - Chile
BancoEstado S.A. Corredores Banco de Credito e 06-22-2023 07-04-2023 CLP 351 0.92
de Bolsa - Chile Inversiones - Chile
BancoEstado S.A. Corredores Banco de Credito e 06-20-2023 07-04-2023 CLP 2,760,184 0.91
de Bolsa - Chile Inversiones - Chile
BancoEstado S.A. Corredores Banco Itau 06-30-2023 07-04-2023 CLP 700,000 0.92
de Bolsa - Chile Corpbanca - Chile
BancoEstado S.A. Corredores Scotiabank Chile 06-22-2023 07-04-2023 CLP 2,948,037 0.92
de Bolsa - Chile
BancoEstado S.A. Corredores Scotiabank Chile 06-22-2023 07-04-2023 CLP 1,002,089 0.92
de Bolsa - Chile
BancoEstado S.A. Corredores Scotiabank Chile 06-20-2023 07-04-2023 CLP 48,309 0.91
de Bolsa - Chile
BCI Corredores de Banco de Chile 06-29-2023 07-04-2023 CLP 1,400,429 0.92
Bolsa Chile S.A.
BCI Corredores de Banco Itau 06-30-2023 07-06-2023 CLP 5,058,365 0.92
Bolsa Chile S.A. Corpbanca - Chile
BCI Corredores de Banco Santander 06-30-2023 07-06-2023 CLP 4,741,635 0.92
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Central 06-30-2023 07-04-2023 CLP 3,995,046 0.92
Bolsa Chile S.A. de Chile
Scotia Corredora de Banco Central 06-30-2023 07-04-2023 CLP 2,501,132 0.92
Bolsa Chile S.A. de Chile
Scotia Corredora de Banco Central 06-30-2023 07-03-2023 CLP 798,765 0.32
Bolsa Chile S.A. de Chile
Scotia Corredora de Banco Central 06-29-2023 07-04-2023 CLP 1,003,865 0.92
Bolsa Chile S.A. de Chile
Scotia Corredora de Banco Central 06-29-2023 07-06-2023 CLP 3,833,064 0.92
Bolsa Chile S.A. de Chile
Scotia Corredora de Banco Consorcio 06-30-2023 07-04-2023 CLP 3,822 0.92
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Consorcio 06-30-2023 07-06-2023 CLP 1,000,000 0.92
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Consorcio 06-30-2023 07-06-2023 CLP 44,278 0.92
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Consorcio 06-30-2023 07-06-2023 CLP 1,355,722 0.92
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Consorcio 06-30-2023 07-03-2023 CLP 1,601,235 0.32
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Santander 06-29-2023 07-04-2023 CLP 900,276 0.92
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Santander 06-29-2023 07-04-2023 CLP 2,997,362 0.92
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Santander 06-29-2023 07-06-2023 CLP 368,224 0.92
Bolsa Chile S.A. - Chile
Scotia Corredora de Banco Security 06-30-2023 07-06-2023 CLP 5,000,000 0.92
Bolsa Chile S.A. - Chile
Total 52,375,255
(*) All financial instruments acquired under resale agreements,correspond to
time deposits and are subject to a fixed interest rate.
F-
57
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
As of December 31, 2022:
Financial entity Underlying Asset Date of placement Due date Currency Amount Monthly interest
(Time Deposit) (*) rate (%)
ThCh$
Banchile Corredores Banco Itau 12-30-2022 01-03-2023 CLP 1,000,300 0.90
de Bolsa S.A. Corpbanca - Chile
BancoEstado S.A. Corredores Banco Central 12-29-2022 01-03-2023 CLP 699,139 0.95
de Bolsa - Chile de Chile
BancoEstado S.A. Corredores Banco Bice - Chile 12-22-2022 01-12-2023 CLP 802,280 0.95
de Bolsa - Chile
BancoEstado S.A. Corredores Banco Central 12-29-2022 01-05-2023 CLP 349,569 0.95
de Bolsa - Chile de Chile
BancoEstado S.A. Corredores Banco Central 12-27-2022 01-03-2023 CLP 1,859,195 0.95
de Bolsa - Chile de Chile
BancoEstado S.A. Corredores Banco Consorcio 12-27-2022 01-03-2023 CLP 143,338 0.95
de Bolsa - Chile - Chile
BancoEstado S.A. Corredores Banco de Credito e 12-22-2022 01-12-2023 CLP 501,425 0.95
de Bolsa - Chile Inversiones - Chile
BancoEstado S.A. Corredores Banco Itau 12-22-2022 01-12-2023 CLP 519,243 0.95
de Bolsa - Chile Corpbanca - Chile
BancoEstado S.A. Corredores Banco Itau 12-22-2022 01-12-2023 CLP 1,486,457 0.95
de Bolsa - Chile Corpbanca - Chile
BancoEstado S.A. Corredores Banco Santander 12-29-2022 01-05-2023 CLP 652 0.95
de Bolsa - Chile - Chile
BancoEstado S.A. Corredores Banco Santander 12-29-2022 01-03-2023 CLP 1,304 0.95
de Bolsa - Chile - Chile
BancoEstado S.A. Corredores Banco Security 12-27-2022 01-03-2023 CLP 426,919 0.95
de Bolsa - Chile - Chile
BancoEstado S.A. Corredores Banco Security 12-27-2022 01-03-2023 CLP 5,447 0.95
de Bolsa - Chile - Chile
BancoEstado S.A. Corredores Banco Security 12-27-2022 01-03-2023 CLP 168,394 0.95
de Bolsa - Chile - Chile
Scotia Corredora de Banco de Credito e 12-30-2022 01-03-2023 CLP 797,417 0.96
Bolsa Chile S.A. Inversiones - Chile
Scotia Corredora de Banco Estado 12-30-2022 01-03-2023 CLP 503,000 0.96
Bolsa Chile S.A. de Chile
Scotia Corredora de Banco Itau 12-22-2022 01-12-2023 CLP 350,987 0.94
Bolsa Chile S.A. Corpbanca - Chile
Scotia Corredora de Banco Estado 12-30-2022 01-05-2023 CLP 2,500,800 0.96
Bolsa Chile S.A. de Chile
Total 12,115,866
(*) All financial instruments acquired under resale agreements,correspond to
time deposits and are subject to a fixed interest rate.
Payments for business acquisitions are detailed as follows:
For the six-months periods ended as of June 30,
2023 2022
ThCh$ ThCh$
Total disbursement per
business acquisition
Other cash payment to acquire 4,176,846 -
interests in joint ventures (1)
Proceeds from changes in ownership interests in 3,205,058 -
subsidiaries that do not result in loss of control (2)
Cash flow used in the purchase - 27,386,281
of non-controlling interests (3)
Cash flows used to obtain control of 2,000,000 -
subsidiaries or other businesses (4)
(1) See
Note 16 - Investments accounted forusing equity method, number (2)
.
(2) See
Note 1 - General Information, letterC, number (9).
(3) See
Note 16 - Investments accounted forusing equity method, number (3)
.
(4) See
Note 15 - Business combinations lettera).
F-
58
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note9 Other non-financial assets
The Company maintained the following other non-financial assets:
As of June 30, 2023 As of December 31, 2022
Current Non-current Current Non-current
ThCh$ ThCh$ ThCh$ ThCh$
Insurances paid 4,068,535 - 5,969,572 -
Advertising 11,647,825 11,880,527 9,638,905 12,189,131
Advances to suppliers 11,313,630 - 2,646,597 -
Prepaid expenses 3,476,691 229,910 1,633,812 312,916
Total advances 30,506,681 12,110,437 19,888,886 12,502,047
Guarantees paid 70 104,238 11,223 107,492
Consumables 1,007,475 - 985,485 -
Dividends receivable 497,988 - 1,152,147 -
Others - 3,616 - 3,905
Total other assets 1,505,533 107,854 2,148,855 111,397
Total 32,012,214 12,218,291 22,037,741 12,613,444
Nature of each non-financial asset:
a) Insurances paid: Annual payments for insurances policies are included, which
are capitalized and thenamortized according the term of the contract.
b) Advertising: Corresponds to advertising and promotion contracts related to customers and advertising serviceproviders,
that promote our brands which are capitalized and then amortized according the term of the contract.
c) Advances to suppliers: Mainly for services, purchase of raw materials and customs agents.
d) Prepaid expenses: Services paid in advance that give entitlement to benefits usually
for a period of 12months, they are reflected against result as they are accrued.
e) Guarantees paid: It is the initial payment for the lease of goods required by
the lessor to ensure compliancewith the conditions stipulated in the contract.
f) Materials to be consumed: Under this item are mainly included security supplies, clothing or
suppliesto be used in administrative offices, such as: eyeglasses, gloves, masks, aprons, etc.
g) Dividends receivable: Dividends receivable from associates and joint ventures.
F-
59
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note10 Trade and other receivables
The trade and other receivables are detailed as follows:
As of June 30, 2023 As of December 31, 2022
Current Non-current Current Non-current
ThCh$ ThCh$ ThCh$ ThCh$
Chile operating segment 133,010,171 - 219,233,148 -
International business operating segment 45,545,173 - 95,454,996 -
Wines operating segment 50,082,014 - 64,529,473 -
Total commercial debtors 228,637,358 - 379,217,617 -
Impairment loss estimate (5,913,505) - (5,689,741) -
Total commercial debtors - net 222,723,853 - 373,527,876 -
Others accounts receivables 87,875,544 3,387,097 71,735,660 3,941,760
Total other accounts receivable 87,875,544 3,387,097 71,735,660 3,941,760
Total 310,599,397 3,387,097 445,263,536 3,941,760
The Company's accounts receivable are denominated in the followingcurrencies:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Chilean Peso 206,923,435 282,513,670
Argentine Peso 42,880,149 84,117,884
US Dollar 37,823,691 48,620,961
Euro 6,701,085 9,337,050
Unidad de Fomento 2,164,390 2,159,295
Uruguayan Peso 5,226,828 6,786,253
Paraguayan Guarani 8,789,243 11,971,053
Bolivian 2,226,413 1,800,775
Others currencies 1,251,260 1,898,355
Total 313,986,494 449,205,296
F-
60
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The detail of the accounts receivable maturities as of June 30,2023, is
detailed as follows:
Total Current balance Overdue balances
0 to 3 months 3 to 6 months 6 to 12 months More than 12 months
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Chile operating segment 133,010,171 126,159,858 3,475,509 1,121,354 1,617,144 636,306
International business operating segment 45,545,173 39,409,259 4,612,329 299,214 116,978 1,107,393
Wines operating segment 50,082,014 47,448,871 2,101,414 372,664 108,665 50,400
Total commercial debtors 228,637,358 213,017,988 10,189,252 1,793,232 1,842,787 1,794,099
Impairment loss estimate (5,913,505) (2,073,997 (524,967) (647,854) (1,311,326) (1,355,361)
Total commercial debtors - net 222,723,853 210,943,991 9,664,285 1,145,378 531,461 438,738
Others accounts receivables 87,875,544 87,509,594 122,337 170,869 - 72,744
Total other accounts receivable 87,875,544 87,509,594 122,337 170,869 - 72,744
Total current 310,599,397 298,453,585 9,786,622 1,316,247 531,461 511,482
Others accounts receivables 3,387,097 3,387,097 - - - -
Total non-current 3,387,097 3,387,097 - - - -
The detail of the accounts receivable maturities as of December31, 2022 is
detailed as follows:
Total Current balance Overdue balances
0 to 3 months 3 to 6 months 6 to 12 months More than 12 months
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Chile operating segment 219,233,148 213,862,500 2,805,528 870,442 1,162,551 532,127
International business operating segment 95,454,996 88,876,236 5,677,849 317,765 98,762 484,384
Wines operating segment 64,529,473 57,781,459 6,379,416 225,394 94,989 48,215
Total commercial debtors 379,217,617 360,520,195 14,862,793 1,413,601 1,356,302 1,064,726
Impairment loss estimate (5,689,741) (2,842,752) (711,757) (501,800) (737,507) (895,925)
Total commercial debtors - net 373,527,876 357,677,443 14,151,036 911,801 618,795 168,801
Others accounts receivables 71,735,660 71,433,620 81,332 206,788 - 13,920
Total other accounts receivable 71,735,660 71,433,620 81,332 206,788 - 13,920
Total current 445,263,536 429,111,063 14,232,368 1,118,589 618,795 182,721
Others accounts receivables 3,941,760 3,941,760 - - - -
Total non-current 3,941,760 3,941,760 - - - -
The Company markets its products through wholesale customers, retailand
supermarket chains. As of June 30, 2023, the accounts receivable from the
three most important supermarket chains in Chile and Argentinarepresent 25%
(26% as of December 31, 2022) of the total accounts receivable.
As indicated in the Risk management note (See
Note5 - Risk administration
), for Credit Risk purposes, the Company acquires credit insurance policies to
cover approximately90% of the significant accounts receivable balances
domestic and export, respectively, of the total of the account receivables.
F-
61
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The general criteria for the determination of the provision forimpairment has
been established in the framework of IFRS 9, which requires analyzing the
behavior of the client portfolio in the longterm in order to generate an
expected credit loss index by tranches based on the age of the portfolio. This
analysis delivered the followingresults for the Company:
As of June 30, 2023 As of December 31, 2022
Credit loss rate Total carrying Impairment Credit loss rate Total carrying Impairment
amount provision amount provision
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Up to date 0.14% 300,527,582 (2,073,997) 0.14% 431,953,815 (2,842,752)
0 to 3 months 8.42% 10,311,589 (524,967) 8.42% 14,944,125 (711,757)
3 to 6 months 46.50% 1,964,101 (647,854) 46.50% 1,620,389 (501,800)
6 to 12 months 100.00% 1,842,787 (1,311,326) 100.00% 1,356,302 (737,507)
More than 100.00% 1,866,843 (1,355,361) 100.00% 1,078,646 (895,925)
12 months
Total 316,512,902 (5,913,505) 450,953,277 (5,689,741)
The percentage of impairment determined for the portfolio in eachcourt may
differ from the direct application of the previously presented parameters
because these percentages are applied to the uncoveredportfolio of credit
insurance that the Company takes. Past due balances over 6 months and for
which no estimates have been made for impairmentlosses, correspond mainly to
items protected by credit insurance. Additionally, there are expired amounts
in this stretch, which accordingto the policy, partial losses due to
impairment are estimated based on an individual case-by-case analysis.
For the above mentioned, management estimates that it does not requireestablishi
ng allowances for further impairment, in addition to those already constituted
based on an aging analysis of these balances.
The write-offs of our doubtful clients are once all pre-trial andjudicial,
efforts have been made and exhausted all means of payment, with the proper
demonstration of the insolvency of customers. Thisprocess of write off
normally takes more than 1 year.
The movement of the impairment losses provision for accounts receivableis as
follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Balance at the beginning of year (5,689,741) (5,820,206)
Estimate of expected credit losses up 12 months (1,155,543) (1,091,053)
Estimate of expected credit losses longer than 12 months (24,104) (31,800)
Impairment provision of accounts receivable (1,179,647) (1,122,853)
Uncollectible accounts 292,690 478,548
Add back of unused provisions 74,803 204,012
Effect of translation into presentation currency 588,390 570,758
Total (5,913,505) (5,689,741)
F-
62
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note11 Accounts andtransactions with related parties
Transactions between the Company and its subsidiaries occur in thenormal
course of operations and have been eliminated during the consolidation process.
The amounts indicated as transactions in the following table relateto trade
operations with related parties, which are under similar terms than what a
third party would get respect to price and paymentconditions. There are no
uncollectible estimates decreasing accounts receivable or guarantees provided
to related parties.
Conditions of the balances and transactions with related parties:
(1) Business operations agreed upon Chilean peso with a payment condition usually up to 30 days.
(2) Business operations agreed upon in foreign currencies and with a payment
condition up to 30 days. Balancesare presented at the closing exchange rate.
(3) An agreement of the subsidiary Compania Pisquera de Chile S.A. with Cooperativa AgricolaControl
Pisquero de Elqui y Limari Ltda. due to differences resulting from the capital contributions
made by the latter. It establishesa 3% annual interest over capital, with annual payments to
be made in eight instalments of UF 1,124 each. Beginning February 28, 2007and UF 9,995 bullet
payment at the last contribution date. In accordance with the contract, Cooperativa Agricola Control
Pisquerode Elqui y Limari Ltda. renewed the contract for a period of nine years with maturing
in the year 2023. Consequently, the UF 9,995will be paid in nine annual, equal and successive
instalments of UF 1,200 each and a final payment of UF 2,050, beginning on February28, 2015.
(4) Corresponds to shares of subsidiary Cerveceria Szot SpA. from
subsidiary Cerveceria KunstmannS.A. sold to Representaciones Chile Beer
Kevin Michael Szot E.I.R.L. The total amount of the transaction raised
ThCh$ 42,506 for the saleof 15,167 shares. An interest of UF plus
3.79% annually will be applied to the value (base 360 days). The
account receivablewill be paid by Representaciones Chile Beer Kevin
Michael Szot E.I.R.L. to CK in the same proportion of the dividends
it will receivefrom the participation it owns in Cerveceria Szot SpA.
(5) In accordance with the terms of the share purchase agreement entered into on June 7, 2022 between thesubsidiary
Compania Pisquera de Chile S.A., as buyer, and Panda SpA. and MBB SpA. as sellers, which was formalized on January20,
2023, where the acquisition of 51.0132% of the shares of D&D SpA. was completed and the methodology for increasing the
purchaseprice was established, subject to compliance with the results achieved by D&D SpA. in the next two years.
(6) Corresponds to a loan agreement dated June 15, 2023, between the subsidiary Compania CerveceriasUnidas
Argentina S.A. and Aguas de Origen S.A. for a total of ARS 200,000,000 (equivalent to ThCh$ 624,589 as of
June 30, 2023), at afixed interest rate of 104.6% per annum, maturing on December 20, 2023. Interest will
be paid monthly and the principal will be amortizedin a single payment at the end of the established term.
The transaction table includes the main transactions made with relatedparties.
F-
63
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The detail of the accounts receivable and payable from related partiesare
detailed as follows:
Accounts receivable from related parties
Current:
Tax ID Company Country Ref. Relationship Transaction Currency As of June As of December
of origin 30, 2023 31, 2022
ThCh$ ThCh$
6,062,786-K Andronico Chile (1) Chairman Sales of CLP 37 438
Luksic Craig of CCU products
6,525,286-4 Francisco Chile (1) Director Sales of CLP 160 160
Perez products
Mackenna
6,770,473-8 Armin Chile (1) Chairman of Sales of CLP 50 98
Kunstmann subsidiary products
Telge
52,000,721-0 Representaciones Chile (4) Shareholder Sale of shares CLP 5,463 4,197
Chile Beer of subsidiary
Kevin Michael
Szot E.I.R.L.
52,000,721-0 Representaciones Chile (1) Shareholder Sales of CLP 6,922 988
Chile Beer of subsidiary products
Kevin Michael
Szot E.I.R.L.
76,002,201-2 SAAM Puertos Chile (1) Related to the Sales of CLP - 49
S.A. controller's products
shareholder
76,115,132-0 Canal 13 SpA. Chile (1) Related to the Sales of CLP 144 134
controller's products
shareholder
76,178,803-5 Vina Tabali Chile (1) Related to the Sales of CLP 2,233 1,935
S.A. controller's products
shareholder
76,275,453-3 Tech Pack S.A. Chile (1) Related to the Sales of CLP 50 50
controller's products
shareholder
76,363,269-5 Inversiones Chile (1) Related to the Sales of CLP - 718
Alabama Ltda. controller's products
shareholder
76,380,217-5 Hapag-Lloyd Chile (1) Related to the Sales of CLP 388 1,153
Chile SpA. controller's products
shareholder
76,455,830-8 DiWatts S.A. Chile (1) Related joint Sales of CLP 512 848
venture products
shareholder of
the subsidiary
76,486,051-9 Inversiones Chile (1) Related to Sales of CLP 16,187 14,203
Rio non-controlling products
Elqui SpA. subsidiary
77,003,342-K Origen Chile (1) Related to Sales of CLP 11,284 10,663
Patagonico non-controlling products
SpA. subsidiary
77,051,330-8 Cerveceria Chile (1) Related to Services CLP 65,961 25,098
Kunstmann non-controlling provided
Ltda. subsidiary
77,051,330-8 Cerveceria Chile (1) Related to Sales of CLP 678,998 857,808
Kunstmann non-controlling products
Ltda. subsidiary
77,191,070-K Banchile Chile (1) Related to the Sales of CLP 278 500
Corredores controller's products
de Seguros shareholder
Ltda.
77,755,610-K Comercial Chile (1) Subsidiary of Sales of CLP 2,144,772 2,789,247
Patagona Ltda. joint venture products
78,053,790-6 Servipag Ltda. Chile (1) Related to the Sales of CLP 1,069 2,227
controller's products
shareholder
78,259,420-6 Inversiones Chile (1) Shareholder Services CLP 3,069 4,326
PFI of joint provided
Chile Ltda. operation of
the subsidiary
78,306,560-6 Inmobiliaria e Chile (1) Related to the Sales of CLP 10 184
Inversiones controller's products
Rio Claro S.A. shareholder
81,095,400-0 Sonacol S.A. Chile (1) Related to the Sales of CLP 195 1,099
controller's products
shareholder
81,148,200-5 Ferrocarril de Chile (1) Related to the Sales of CLP 4,975 4,250
Antofagasta controller's products
a Bolivia S.A. shareholder
81,805,700-8 Cooperativa Chile (1) Shareholder Advance CLP - 796,841
Agricola Control of subsidiary purchase
Pisquero de Elqui
y Limari Ltda.
81,805,700-8 Cooperativa Chile (3) Shareholder Loan UF - 74,663
Agricola Control of subsidiary
Pisquero de Elqui
y Limari Ltda.
81,805,700-8 Cooperativa Chile (1) Shareholder Sales of CLP 1,965 3,015
Agricola Control of subsidiary products
Pisquero de Elqui
y Limari Ltda.
84,356,800-9 Watts S.A. Chile (1) Related joint Sales of CLP 4,371 14,783
venture products
shareholder of
the subsidiary
90,160,000-7 Compania Sud Chile (1) Related to the Sales of CLP 286 1,325
Americana controller's products
de Vapores shareholder
S.A.
90,703,000-8 Nestle Chile (1) Shareholder Services CLP - 113,782
Chile S.A. of subsidiary provided
90,703,000-8 Nestle Chile (1) Shareholder Sales of CLP 33,639 37,836
Chile S.A. of subsidiary products
91,705,000-7 Quinenco S.A. Chile (1) Controller's Sales of CLP 2,193 4,085
shareholder products
92,011,000-2 Empresa Chile (1) Related to the Sales of CLP 3,863 2,579
Nacional de controller's products
Energia shareholder
Enex S.A.
94,625,000-7 Inversiones Chile (1) Related to the Sales of CLP 136,924 275,402
ENEX S.A. controller's products
shareholder
96,536,010-7 Inversiones Chile (1) Related to the Sales of CLP - 683
Consolidadas controller's products
Ltda. shareholder
96,571,220-8 Banchile Chile (1) Related to the Sales of CLP 2,622 3,068
Corredores controller's products
de Bolsa S.A. shareholder
96,591,040-9 Empresas Chile (1) Shareholder Sales of CLP 46,034 41,492
Carozzi S.A. of joint products
operation of
the subsidiary
96,610,780-4 Portuaria Chile (1) Related to the Sales of CLP 3,295 232
Corral S.A. controller's products
shareholder
96,645,790-2 Socofin S.A. Chile (1) Related to the Sales of CLP 213 174
controller's products
shareholder
96,657,210-8 Transportes Chile (1) Related to the Sales of CLP 221 301
Fluviales controller's products
Corral S.A. shareholder
96,810,030-0 RDF Media SpA. Chile (1) Related to the Sales of CLP 436 957
controller's products
shareholder
96,908,930-0 San Vicente Chile (1) Related to the Sales of CLP 2,810 3,716
Terminal controller's products
Internacional shareholder
S.A.
96,908,970-K San Antonio Chile (1) Related to the Sales of CLP 1,729 2,410
Terminal controller's products
Internacional shareholder
S.A.
96,919,980-7 Cerveceria Chile (1) Joint venture Services CLP 896,816 692,100
Austral S.A. provided
97,004,000-5 Banco de Chile Chile (1) Related to the Sales of CLP 31,028 73,164
controller's products
shareholder
99,506,030-2 Muellaje del Chile (1) Related to the Sales of CLP 6,798 5,601
Maipo S.A. controller's products
shareholder
99,511,240-K Antofagasta Chile (1) Related to the Sales of CLP 2,076 4,623
Terminal controller's products
Internacional shareholder
S.A.
0-E Aguas de Argentina (6) Joint venture Loan ARS 640,698 -
Origen S.A. of subsidiary
0-E Aguas de Argentina (2) Joint venture Services ARS 168,898 -
Origen S.A. of subsidiary provided
0-E Central Colombia (2) Joint venture Sales of USD 14,362 15,333
Cervecera of subsidiary products
de Colombia
S.A.S.
0-E Nestle Waters France (2) Related to the Services Euros 50,021 69,802
Marketing subsidiary's provided
& Distribution shareholder
S.A.S.
0-E Heineken Netherlands (2) Related to the Services Euros 203,425 239,791
Brouwerijen controller's provided
B.V. shareholder
0-E Fundacion Paraguay (2) Related until Donations PYG - 718
Ramon March 16,2023
T. Cartes
0-E Grafica Paraguay (2) Related until Sales of PYG - 345
Editorial March 16,2023 products
Inter-Sudamericana
S.A.
0-E Prana S.A. Paraguay (2) Related until Services PYG - 4,905
March 16,2023 provided
Total 5,197,480 6,204,099
F-
64
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Non Current:
Tax ID Company Country Ref. Relationship Transaction Currency As of June As of December
of origin 30, 2023 31, 2022
ThCh$ ThCh$
52,000,721-0 Representaciones Chile Beer Chile (4) Shareholder Sale of shares CLP 42,506 42,506
Kevin Michael Szot E.I.R.L. of subsidiary
Total 42,506 42,506
F-
65
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Accounts payableto related parties
Current:
Tax ID Company Country Ref. Relationship Transaction Currency As of June As of December
of origin 30, 2023 31, 2022
ThCh$ ThCh$
52,000,721-0 Representaciones Chile (1) Shareholder Services CLP 20,365 17,283
Chile Beer of subsidiary received
Kevin Michael
Szot E.I.R.L.
71,238,300-3 Fundacion Chile (1) Related to the Services CLP - 208,238
Teleton Company's received
general
manager
76,115,132-0 Canal 13 SpA. Chile (1) Related to the Services CLP 69,348 279,560
controller's received
shareholder
76,380,217-5 Hapag-Lloyd Chile (1) Related to the Services CLP 15,787 7,138
Chile SpA. controller's received
shareholder
76,455,830-8 DiWatts S.A. Chile (1) Related joint Purchase of CLP 1,234,596 302,729
venture products
shareholder of
the subsidiary
76,729,932-K Saam Logistics Chile (1) Related to the Services CLP 141,613 157,287
S.A. controller's received
shareholder
77,003,342-K Origen Chile (1) Related to Services CLP 1,195 -
Patagonico non-controlling received
SpA. subsidiary
77,051,330-8 Cerveceria Chile (1) Related to Services CLP 60 996
Kunstmann non-controlling received
Ltda. subsidiary
77,450,163-0 Panda SpA. Chile (5) Shareholder Balance of CLP 134,631 -
of subsidiary purchase
of shares
77,486,593-4 MBB SpA. Chile (5) Shareholder Balance of CLP 134,632 -
of subsidiary purchase
of shares
77,755,610-K Comercial Chile (1) Subsidiary of Services CLP 145,037 311,959
Patagona Ltda. joint venture received
78,053,790-6 Servipag Ltda. Chile (1) Related to the Services CLP 2,091 1,173
controller's received
shareholder
78,259,420-6 Inversiones Chile (1) Shareholder Purchase of CLP 1,630,568 1,147,715
PFI of joint products
Chile Ltda. operation of
the subsidiary
81,805,700-8 Cooperativa Chile (1) Shareholder Services CLP 1,172 2,090
Agricola Control of subsidiary received
Pisquero de Elqui
y Limari Ltda.
84,356,800-9 Watts S.A. Chile (2) Related joint Royalty USD - 15,995
venture
shareholder of
the subsidiary
90,703,000-8 Nestle Chile (1) Shareholder Services CLP 1,158 -
Chile S.A. of subsidiary received
90,703,000-8 Nestle Chile (1) Shareholder Purchase of CLP - 11,464
Chile S.A. of subsidiary products
91,705,000-7 Quinenco S.A. Chile (1) Controller's Services CLP 4,703 10,473
shareholder received
92,011,000-2 Empresa Chile (1) Related to the Purchase of CLP 39,969 95,039
Nacional de controller's products
Energia shareholder
Enex S.A.
94,058,000-5 Servicios Chile (1) Related to the Services CLP - 548
Aeroportuarios controller's received
Aerosan S.A. shareholder
94,625,000-7 Inversiones Chile (1) Related to the Services CLP 10,966 12,258
ENEX S.A. controller's received
shareholder
96,591,040-9 Empresas Chile (2) Shareholder Purchase of USD 1,012 -
Carozzi S.A. of joint products
operation of
the subsidiary
96,591,040-9 Empresas Chile (1) Shareholder Purchase of CLP 302,103 429,337
Carozzi S.A. of joint products
operation of
the subsidiary
96,657,690-1 Inversiones Chile (1) Related to the Services CLP - 30,487
Punta controller received
Brava S.A.
96,798,520-1 SAAM Chile (1) Related to the Services CLP 17,902 16,350
Extraportuarios controller's received
S.A. shareholder
96,810,030-0 RDF Media SpA. Chile (1) Related to the Services CLP 16,900 2,977
controller's received
shareholder
96,908,970-K San Antonio Chile (1) Related to the Services CLP 1,454 5,479
Terminal controller's received
Internacional shareholder
S.A.
96,919,980-7 Cerveceria Chile (1) Joint venture Purchase of CLP 2,758,739 3,277,811
Austral S.A. products
96,919,980-7 Cerveceria Chile (1) Joint venture Royalty CLP 590,124 2,058,046
Austral S.A.
97,004,000-5 Banco de Chile Chile (1) Related to the Services CLP - 193,814
controller's received
shareholder
0-E Paulaner Germany (2) Related to the Purchase of USD - 1,800
Brauerei controller's products
Gruppe GmbH shareholder
& Co. KGaA
0-E Aguas de Argentina (2) Joint venture Purchase of ARS 201,185 -
Origen S.A. of subsidiary products
0-E Premium Bolivia (2) Related to the Purchase of BOB - 860
Brands S.R.L. subsidiary's products
shareholder
0-E Ecor Ltda. Bolivia (2) Related to the Services BOB 9,470 -
subsidiary's received
shareholder
0-E Central Colombia (2) Joint venture Services USD 89,459 1,286
Cervecera of subsidiary received
de Colombia
S.A.S.
0-E Nestle Waters France (2) Related to the Services Euros 5,725 27,182
Management subsidiary's received
& Technology shareholder
S.A.S.
0-E Nestle Waters France (2) Related to the Purchase of Euros 39,173 502
Marketing subsidiary's products
& Distribution shareholder
S.A.S.
0-E Amstel Netherlands (2) Related to the Royalty Euros 32,232 -
Brouwerijen controller's
B.V. shareholder
0-E Heineken Netherlands (2) Related to the Purchase of USD 1,753,843 2,992,097
Brouwerijen controller's products
B.V. shareholder
0-E Heineken Netherlands (2) Related to the Royalty USD 7,904 16,876
Brouwerijen controller's
B.V. shareholder
0-E Heineken Netherlands (2) Related to the Royalty Euros 26,030,774 22,406,932
Brouwerijen controller's
B.V. shareholder
0-E Heineken Netherlands (2) Related to the Purchase of Euros 9 9
Supply controller's products
Chain B.V. shareholder
0-E Emprendimientos Paraguay (2) Related until Services PYG - 8,160
Hoteleros March 16,2023 received
S.A.E.C.A.
0-E Enex Paraguay Paraguay (2) Subsidiary Purchase of PYG - 6,850
S.A.E. related products
0-E Grafica Paraguay (2) Related until Services PYG - 6,172
Editorial March 16,2023 received
Inter-Sudamericana
S.A.
0-E La Mision S.A. Paraguay (2) Related until Services PYG - 439
March 16,2023 received
0-E Palermo S.A. Paraguay (2) Related until Services PYG - 3,544
March 16,2023 received
0-E Prana S.A. Paraguay (2) Related until Services PYG - 128,988
March 16,2023 received
0-E Societe des Switzerland (2) Related to the Royalty Others 42,478 84,465
Produits subsidiary's currencies
Nestle S.A. shareholder
Total 35,488,377 34,282,408
F-
66
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Non Current:
Tax ID Company Country Ref. Relationship Transaction Currency As of June As of December
of origin 30, 2023 31, 2022
ThCh$ ThCh$
77,450,163-0 Panda SpA. Chile (5) Shareholder Balance of CLP 161,781 -
of subsidiary purchase of shares
77,486,593-4 MBB SpA. Chile (5) Shareholder Balance of CLP 161,782 -
of subsidiary purchase of shares
Total 323,563 -
F-
67
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Most significant transactions and effectson results:
For the six-months ended June 30, 2023 and 2022, the most significanttransaction
s with related parties are detailed as follows:
Tax ID Company Country of origin Relationship Transaction 2023 2022
Amounts (Charges)/Credits Amounts (Charges)/Credits
(Effect on Income) (Effect on Income)
ThCh$ ThCh$ ThCh$ ThCh$
76,115,132-0 Canal 13 SpA. Chile Related to the Services 854,361 (854,361) 464,712 (464,712)
controller's received
shareholder
76,313,970-0 Inversiones Chile Related to the Dividends paid 626,990 - 5,055,998 -
Irsa Ltda. controller
76,380,217-5 Hapag-Lloyd Chile Related to the Services 59,501 (23,666) 399,427 (22,698)
Chile SpA. controller's received
shareholder
76,486,051-9 Inversiones Chile Related to Loan payment - - 26,088 (1,088)
Rio non-controlling
Elqui SpA. subsidiary
76,729,932-K SAAM Logistics Chile Related to the Services 160,025 - 354,142 -
S.A. controller's received
shareholder
76,800,322-K Yanghe Chile Shareholder Dividends paid 1,871,881 - 2,240,801 -
Chile SpA. of subsidiary
77,051,330-8 Cerveceria Chile Related to Sales of 422,833 319,988 423,648 320,606
Kunstmann non-controlling products
Ltda. subsidiary
77,051,330-8 Cerveceria Chile Related to Services 79,248 (79,248) 58,333 (58,333)
Kunstmann non-controlling received
Ltda. subsidiary
77,486,593-4 MMB SpA. Chile Shareholder Purchase 1,000,000 - - -
of subsidiary of shares
77,450,163-0 Panda SpA. Chile Shareholder Purchase 1,000,000 - - -
of subsidiary of shares
77,755,610-K Comercial Chile Subsidiary of Services 453,651 (453,651) 270,490 (270,490)
Patagona Ltda. joint venture received
77,755,610-K Comercial Chile Subsidiary of Sales of 6,715,372 4,326,878 5,695,016 3,669,438
Patagona Ltda. joint venture products
78,259,420-6 Inversiones Chile Shareholder of Services 4,442,265 4,442,265 2,550,951 2,550,951
PFI joint provided
Chile Ltda. operation
78,259,420-6 Inversiones Chile Shareholder of Services 344,652 (344,652) - -
PFI joint received
Chile Ltda. operation
78,259,420-6 Inversiones Chile Shareholder of Purchase of 10,369,104 - 12,235,138 -
PFI joint products
Chile Ltda. operation
79,985,340-K Cervecera Chile Shareholder Dividends paid 2,023,511 - 2,497,851 -
Valdivia S.A. of subsidiary
81,805,700-8 Cooperativa Chile Shareholder Purchase of 8,054,360 - 3,280,924 -
Agricola Control of subsidiary products
Pisquero de Elqui
y Limari Ltda.
81,805,700-8 Cooperativa Chile Shareholder Dividends paid 1,617,375 - 2,655,807 -
Agricola Control of subsidiary
Pisquero de Elqui
y Limari Ltda.
81,805,700-8 Cooperativa Chile Shareholder Loan recovery 71,381 2,751 - -
Agricola Control of subsidiary
Pisquero de Elqui
y Limari Ltda.
81,805,700-8 Cooperativa Chile Shareholder Sales of 2,105 2,105 - -
Agricola Control of subsidiary products
Pisquero de Elqui
y Limari Ltda.
90,703,000-8 Nestle Chile Related to the Dividends paid 6,876,759 - 8,447,312 -
Chile S.A. controller
91,705,000-7 Quinenco S.A. Chile Controller's Sales of 25,061 18,505 16,599 12,256
shareholder products
92,011,000-2 Empresa Chile Related to the Purchase of 187,768 (187,768) 124,814 (124,814)
Nacional de controller's products
Energia shareholder
Enex S.A.
92,011,000-2 Empresa Chile Related to the Services 237,742 (237,742) 179,455 (179,455)
Nacional de controller's received
Energia shareholder
Enex S.A.
93,920,000-2 Antofagasta Chile Related to the Sales of 259 203 1,405 1,104
Minerals S.A. controller's products
shareholder
94,625,000-7 Inversiones Chile Related to the Sales of 1,104,782 819,826 924,807 686,271
Enex S.A. controller's products
shareholder
96,427,000-7 Inversiones y Chile Controller Dividends paid 5,409,505 - 43,621,855 -
Rentas S.A
96,427,000-7 Inversiones y Chile Controller Services 5,737 5,737 5,090 5,090
Rentas S.A. provided
96,591,040-9 Empresas Chile Shareholder of Purchase of 3,285,463 - 2,143,977 -
Carozzi S.A. joint products
operation
96,591,040-9 Empresas Chile Shareholder of Sales of 85,431 80,866 64,608 61,156
Carozzi S.A. joint products
operation
96,657,690-1 Inversiones Chile Related to the Services - - 216,304 (216,304)
Punta controller's received
Brava S.A. shareholder
96,571,220-8 Banchile Chile Related to the Investment 76,524,266 74,266 54,329,476 29,476
Corredores controller's Rescue
de Bolsa S.A. shareholder
96,571,220-8 Banchile Chile Related to the Investments 75,450,000 - 54,300,000 -
Corredores controller's
de Bolsa S.A. shareholder
96,689,310-9 Transbank S.A. Chile Related to the Services 116,763 (116,763) 163,869 (163,869)
controller's received
shareholder
96,798,520-1 SAAM Chile Related to the Services 58,527 - 141,652 -
Extraportuario controller's received
S.A. shareholder
96,810,030-0 Radiodifusion Chile Related to the Services 37,785 (37,785) 64,650 (64,650)
SpA. controller's received
shareholder
96,919,980-7 Cerveceria Chile Joint venture Dividends 1,190,908 - 373,730 -
Austral S.A. received
96,919,980-7 Cerveceria Chile Joint venture Sales of 66,844 45,903 77,793 53,422
Austral S.A. products
96,919,980-7 Cerveceria Chile Joint venture Royalty 2,378,324 (2,378,324) 3,202,153 (3,202,153)
Austral S.A.
96,919,980-7 Cerveceria Chile Joint venture Purchase of 12,733,711 - 11,341,234 -
Austral S.A. products
96,919,980-7 Cerveceria Chile Joint venture Services 230,736 230,736 182,544 182,544
Austral S.A. provided
97,004,000-5 Banco de Chile Chile Related to the Interests 15,202 (15,202) 22,118 (22,118)
controller's
shareholder
97,004,000-5 Banco de Chile Chile Related to the Investment 25,456,365 56,365 278,678,634 438,039
controller's Rescue
shareholder
97,004,000-5 Banco de Chile Chile Related to the Services 4,095 (4,095) 39,388 (39,388)
controller's received
shareholder
97,004,000-5 Banco de Chile Chile Related to the Sales of 156,731 145,482 102,787 95,410
controller's products
shareholder
97,004,000-5 Banco de Chile Chile Related to the Derivatives 59,689,482 1,821,429 76,507,499 2,287,765
controller's
shareholder
97,004,000-5 Banco de Chile Chile Related to the Investments 25,400,000 - 256,250,110 -
controller's
shareholder
0-E Aguas de Argentina Related to the Purchase of 1,755,489 - - -
Origen S.A. subsidiary's products
shareholder
0-E Aguas de Argentina Related to the Services 133,203 133,203 - -
Origen S.A. subsidiary's provided
shareholder
0-E Aguas de Argentina Subsidiary of Loan 624,589 (16,109) - -
Origen S.A. joint venture
0-E Ecor Ltda. Bolivia Related to the Services 37,129 (37,129) 63,215 (63,215)
subsidiary's received
shareholder
0-E Inversiones Bolivia Related to the Capital 2,631,809 - 1,648,121 -
Bebinv S.A. subsidiary's contribution
shareholder
0-E Central Colombia Joint venture Capital 4,176,846 - - -
Cervecera contribution
de Colombia
S.A.S.
0-E Amstel Netherlands Related to the Royalty 652,556 (652,556) 371,442 (371,442)
Brouwerijen controller's
B.V. shareholder
0-E Heineken Netherlands Related to the Services 49,266 (49,266) 77,714 (77,714)
Brouwerijen controller's received
B.V. shareholder
0-E Heineken Netherlands Related to the Purchase of 4,823,420 - 17,034,220 -
Brouwerijen controller's products
B.V. shareholder
0-E Heineken Netherlands Related to the Royalty 9,302,866 (9,302,866) 8,377,191 (8,377,191)
Brouwerijen controller's
B.V. shareholder
0-E Aerocentro Paraguay Related until Sales of 357 250 422 295
S.A. March 16,2023 products
0-E Banco Paraguay Related until Sales of 103 72 1,710 1,197
BASA S.A. March 16,2023 products
0-E Cadena Paraguay Related until Sales of 14,606 10,224 5,436 3,806
Farmacenter March 16,2023 products
S.A.
0-E Cementos Paraguay Related until Sales of - - 2,966 2,076
Concepcion March 16,2023 products
S.A.E.
0-E Chajha S.A. Paraguay Related until Sales of 809 566 3,842 2,690
March 16,2023 products
0-E Cigar Trading Paraguay Related until Sales of - - 581 406
S.R.L. March 16,2023 products
0-E Consignataria Paraguay Related until Sales of 62 44 317 222
de Ganado S.A. March 16,2023 products
0-E Emprendimientos Paraguay Related until Sales of 1,259 881 14,418 10,092
Hoteleros March 16,2023 products
S.A.E.C.A.
0-E Enex Paraguay Paraguay Related to the Sales of 53,980 37,786 123,506 86,452
S.R.L. subsidiary's products
shareholder
0-E Fundacion Paraguay Related until Sales of - - 698 489
Ramon March 16,2023 products
T. Cartes
0-E Ganaderia Las Paraguay Related until Sales of 712 498 2,176 1,523
Pampas S.A. March 16,2023 products
0-E Grafica Paraguay Related until Sales of 45 31 130 91
Editorial March 16,2023 products
Inter-Sudamericana
S.A.
0-E Horacio Cartes Paraguay Related until Dividends paid 2,513,295 - - -
March 16,2023
0-E La Mision S.A. Paraguay Related until Sales of 257 180 586 410
March 16,2023 products
0-E Palermo S.A. Paraguay Related until Sales of 4,790 3,353 8,495 5,946
March 16,2023 products
0-E Pamplona S.A. Paraguay Related until Sales of 12 9 786 550
March 16,2023 products
0-E Pronet Paraguay Related until Sales of 257 180 - -
March 16,2023 products
0-E Sarah Cartes Paraguay Related until Purchase 3,205,058 - - -
March 16,2023 of shares
0-E QSR S.A. Paraguay Related until Sales of - - 263,964 184,772
March 16,2023 products
0-E Prana S.A. Paraguay Related until Sales of 79 56 369 258
March 16,2023 products
0-E Saga Gym Paraguay Related until Sales of - - 257 181
S.R.L. March 16,2023 products
0-E Tabacalera del Paraguay Related until Sales of 4,578 3,204 16,789 11,752
Este S.A. March 16,2023 products
0-E Societe des Switzerland Related to the Royalty 414,855 (414,855) 408,176 (408,176)
Produits subsidiary's
Nestle S.A. shareholder
F-
68
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
For the three-months ended June 30, 2023 and 2022, the most significanttransacti
ons with related parties are detailed as follows:
Tax ID Company Country of origin Relationship Transaction 2023 2022
Amounts (Charges)/Credits Amounts (Charges)/Credits
(Effect on Income) (Effect on Income)
ThCh$ ThCh$ ThCh$ ThCh$
76,115,132-0 Canal 13 SpA. Chile Related to the Services 556,771 (556,771) 97,862 (97,862)
controller's received
shareholder
76,313,970-0 Inversiones Chile Related to the Dividends paid 626,990 - 5,055,998 -
Irsa Ltda. controller
76,380,217-5 Hapag-Lloyd Chile Related to the Services 35,636 (13,430) 318,345 (14,095)
Chile SpA. controller's received
shareholder
76,486,051-9 Inversiones Chile Related to Loan payment - - 26,088 (1,088)
Rio non-controlling
Elqui SpA. subsidiary
76,729,932-K SAAM Logistics Chile Related to the Services 96,202 - 302,389 -
S.A. controller's received
shareholder
76,800,322-K Yanghe Chile Shareholder Dividends paid 1,871,881 - 2,240,801 -
Chile SpA. of subsidiary
77,051,330-8 Cerveceria Chile Related to Sales of 133,451 100,992 132,800 100,500
Kunstmann non-controlling products
Ltda. subsidiary
77,051,330-8 Cerveceria Chile Related to Services 38,012 (38,012) 29,200 (29,200)
Kunstmann non-controlling received
Ltda. subsidiary
77,755,610-K Comercial Chile Subsidiary of Services 158,579 (158,579) 153,739 (153,739)
Patagona Ltda. joint venture received
77,755,610-K Comercial Chile Subsidiary of Sales of 2,877,471 1,854,025 2,448,729 1,577,776
Patagona Ltda. joint venture products
78,259,420-6 Inversiones Chile Shareholder of Services 2,637,493 2,637,493 2,029,221 2,029,221
PFI joint provided
Chile Ltda. operation
78,259,420-6 Inversiones Chile Shareholder of Purchase of 4,781,157 - 5,704,472 -
PFI joint products
Chile Ltda. operation
79,985,340-K Cervecera Chile Shareholder Dividends paid 2,023,511 - 2,497,851 -
Valdivia S.A. of subsidiary
81,805,700-8 Cooperativa Chile Shareholder Purchase of 7,916,258 - 3,171,996 -
Agricola Control of subsidiary products
Pisquero de Elqui
y Limari Ltda.
81,805,700-8 Cooperativa Chile Shareholder Dividends paid 1,617,375 - 2,655,807 -
Agricola Control of subsidiary
Pisquero de Elqui
y Limari Ltda.
81,805,700-8 Cooperativa Chile Shareholder Sales of 2,105 2,105 - -
Agricola Control of subsidiary products
Pisquero de Elqui
y Limari Ltda.
81,805,700-8 Cooperativa Chile Shareholder Loan recovery 71,381 - - -
Agricola Control of subsidiary
Pisquero de Elqui
y Limari Ltda.
90,703,000-8 Nestle Chile Related to the Dividends paid 6,876,759 - 8,447,312 -
Chile S.A. controller
91,705,000-7 Quinenco S.A. Chile Controller's Sales of 12,102 8,936 8,257 6,097
shareholder products
92,011,000-2 Empresa Chile Related to the Purchase of 81,847 (81,847) 65,248 (65,248)
Nacional de controller's products
Energia shareholder
Enex S.A.
92,011,000-2 Empresa Chile Related to the Services 198,600 (198,600) 91,059 (91,059)
Nacional de controller's received
Energia shareholder
Enex S.A.
93,920,000-2 Antofagasta Chile Related to the Sales of 259 203 28 22
Minerals S.A. controller's products
shareholder
94,625,000-7 Inversiones Chile Related to the Sales of 447,929 332,395 385,281 285,906
Enex S.A. controller's products
shareholder
96,427,000-7 Inversiones y Chile Controller Dividends paid 5,409,505 - 43,621,855 -
Rentas S.A
96,427,000-7 Inversiones y Chile Controller Services 2,886 2,886 2,574 2,574
Rentas S.A. provided
96,591,040-9 Empresas Chile Shareholder of Purchase of 1,865,297 - 1,543,526 -
Carozzi S.A. joint products
operation
96,591,040-9 Empresas Chile Shareholder of Sales of 38,354 36,305 31,250 29,581
Carozzi S.A. joint products
operation
96,657,690-1 Inversiones Chile Related to the Services - - 191,736 (191,736)
Punta controller's received
Brava S.A. shareholder
96,571,220-8 Banchile Chile Related to the Investment 45,513,926 63,926 6,001,080 1,080
Corredores controller's Rescue
de Bolsa S.A. shareholder
96,571,220-8 Banchile Chile Related to the Investments 45,450,000 - 6,000,000 -
Corredores controller's
de Bolsa S.A. shareholder
96,689,310-9 Transbank S.A. Chile Related to the Services 57,014 (57,014) 73,116 (73,116)
controller's received
shareholder
96,798,520-1 SAAM Chile Related to the Services 32,983 - 18,674 -
Extraportuario controller's received
S.A. shareholder
96,810,030-0 Radiodifusion Chile Related to the Services 27,039 (27,039) 10,168 (10,168)
SpA. controller's received
shareholder
96,919,980-7 Cerveceria Chile Joint venture Dividends 1,190,908 - 373,730 -
Austral S.A. received
96,919,980-7 Cerveceria Chile Joint venture Sales of 23,361 16,043 24,505 16,828
Austral S.A. products
96,919,980-7 Cerveceria Chile Joint venture Royalty 905,706 (905,706) 1,757,283 (1,757,283)
Austral S.A.
96,919,980-7 Cerveceria Chile Joint venture Purchase of 6,859,935 - 5,610,802 -
Austral S.A. products
96,919,980-7 Cerveceria Chile Joint venture Services 230,736 230,736 182,544 182,544
Austral S.A. provided
97,004,000-5 Banco de Chile Chile Related to the Interests - - 11,120 (11,120)
controller's
shareholder
97,004,000-5 Banco de Chile Chile Related to the Investment - - 108,602,318 202,318
controller's Rescue
shareholder
97,004,000-5 Banco de Chile Chile Related to the Services 1,779 (1,779) 1,154 (1,154)
controller's received
shareholder
97,004,000-5 Banco de Chile Chile Related to the Sales of 78,470 72,838 54,843 50,906
controller's products
shareholder
97,004,000-5 Banco de Chile Chile Related to the Derivatives 49,535,466 143,173 16,581,940 4,892,794
controller's
shareholder
97,004,000-5 Banco de Chile Chile Related to the Investments - - 87,400,000 -
controller's
shareholder
0-E Aguas de Argentina Related to the Purchase of 1,755,489 - - -
Origen S.A. subsidiary's products
shareholder
0-E Aguas de Argentina Related to the Services 133,203 133,203 - -
Origen S.A. subsidiary's provided
shareholder
0-E Aguas de Argentina Subsidiary of Loan 624,589 (16,109) - -
Origen S.A. joint venture
0-E Ecor Ltda. Bolivia Related to the Services 1,784 (1,784) 31,238 (31,238)
subsidiary's received
shareholder
0-E Inversiones Bolivia Related to the Capital 1,328,855 - 1,648,121 -
Bebinv S.A. subsidiary's contribution
shareholder
0-E Central Colombia Joint venture Capital 4,176,846 - - -
Cervecera contribution
de Colombia
S.A.S.
0-E Amstel Netherlands Related to the Royalty 20,045 (20,045) 320,548 (320,548)
Brouwerijen controller's
B.V. shareholder
0-E Heineken Netherlands Related to the Services 25,617 (25,617) 54,587 (54,587)
Brouwerijen controller's received
B.V. shareholder
0-E Heineken Netherlands Related to the Purchase of 3,767,190 - 10,111,532 -
Brouwerijen controller's products
B.V. shareholder
0-E Heineken Netherlands Related to the Royalty 6,502,082 (6,502,082) 3,380,372 (3,380,372)
Brouwerijen controller's
B.V. shareholder
0-E Aerocentro Paraguay Related until Sales of - - 422 295
S.A. March 16,2023 products
0-E Banco Paraguay Related until Sales of - - 1,518 1,063
BASA S.A. March 16,2023 products
0-E Cadena Paraguay Related until Sales of - - 4,095 2,867
Farmacenter March 16,2023 products
S.A.
0-E Cementos Paraguay Related until Sales of - - 2,760 1,932
Concepcion March 16,2023 products
S.A.E.
0-E Chajha S.A. Paraguay Related until Sales of - - 3,302 2,312
March 16,2023 products
0-E Cigar Trading Paraguay Related until Sales of - - 398 278
S.R.L. March 16,2023 products
0-E Consignataria Paraguay Related until Sales of - - 173 121
de Ganado S.A. March 16,2023 products
0-E Emprendimientos Paraguay Related until Sales of - - 9,900 6,930
Hoteleros March 16,2023 products
S.A.E.C.A.
0-E Enex Paraguay Paraguay Related to the Sales of - - 88,621 62,033
S.R.L. subsidiary's products
shareholder
0-E Fundacion Paraguay Related until Sales of - - 683 478
Ramon March 16,2023 products
T. Cartes
0-E Ganaderia Las Paraguay Related until Sales of - - 1,429 1,000
Pampas S.A. March 16,2023 products
0-E Grafica Paraguay Related until Sales of - - 106 74
Editorial March 16,2023 products
Inter-Sudamericana
S.A.
0-E La Mision S.A. Paraguay Related until Sales of - - 396 277
March 16,2023 products
0-E Palermo S.A. Paraguay Related until Sales of - - 8,381 5,866
March 16,2023 products
0-E Pamplona S.A. Paraguay Related until Sales of - - 773 541
March 16,2023 products
0-E QSR S.A. Paraguay Related until Sales of - - 184,515 129,158
March 16,2023 products
0-E Prana S.A. Paraguay Related until Sales of - - 369 258
March 16,2023 products
0-E Saga Gym Paraguay Related until Sales of - - 192 135
S.R.L. March 16,2023 products
0-E Tabacalera del Paraguay Related until Sales of - - 15,116 10,581
Este S.A. March 16,2023 products
0-E Societe des Switzerland Related to the Royalty 164,121 (164,121) 204,088 (204,088)
Produits subsidiary's
Nestle S.A. shareholder
F-
69
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Remuneration of the Management key employees
The Company is managed by a Board of Directors comprised of 9 members,each of
whom is in office for a 3-year term and may be re-elected.
The Board was appointed at the Ordinary Shareholders' Meetingheld on April 14,
2021, being elected for a period of three years Messrs, Andronico Luksic
Craig, Francisco Perez Mackenna,Pablo Granifo Lavin, Rodrigo Hinzpeter
Kirberg, Carlos Molina Solis, Jose Miguel Barros van Hovell tot Westerflier,Marc
Gross, Rory Cullinan and Vittorio Corbo Lioi, the latter independent
according to article 50 bis of Law No. 18,046. The Chairmanand the Vice
Chairman, as well as the members of the Audit Committee were appointed at the
Board of Directors' meeting held thesame date. According to article 50 bis of
Law No. 18,046, in the same Board meeting the independent Director Mr.
Vittorio Corbo Lioi appointedthe other members of the Directors Committee,
which is composed of Directors Messrs. Corbo, Perez and Molina. Additionally,
Messrs.Corbo and Molina were appointed as members of the Audit Committee, both
meeting the independence criteria under the Securities ExchangeAct of 1934,
the Sarbanes-Oxley Act of 2002 and the New York Stock Exchange Rules. The
Board of Directors also resolved that DirectorsMessrs. Perez and Barros
participate in the Audit Committee´s meetings as observers.
At the Board meeting held on October 5, 2022, the Board of Directorstook
notice of the resignation of Mr. Jose Miguel Barros van Hovell tot Westerflier
from the position of director, effectiveon October 1, 2022. At the same
meeting, and as permitted by Article 32 of Law No. 18,046, the Board
unanimously agreed to appoint Ms.Maria Gabriela Cadenas as a Director, until
the next Ordinary Shareholders' Meeting is held.
By virtue of the foregoing, at the Ordinary Shareholders' Meetingheld on April
12, 2023, a new Board of Directors was elected for a period of three years,
being elected the following directors: AndronicoLuksic Craig, Francisco Perez
Mackenna, Pablo Granifo Lavin, Rodrigo Hinzpeter Kirberg, Carlos Molina Solis,
MariaGabriela Cadenas, Marc Gross, Rory Cullinan and Vittorio Corbo Lioi, the
latter being appointed as an independent director in accordancewith the
provisions of Article 50 bis of Law No. 18. 046. The Chairman and Vice
Chairman of the Board of Directors as well as the membersof the Audit
Committee were appointed at a Board meeting held on the same date. In
accordance with the provisions of Article 50 bis ofLaw No. 18,046, the
independent director Mr. Vittorio Corbo Lioi appointed the other members of
the Directors' Committee, which occurredat the same meeting, which was
composed of directors Mr. Corbo, Mr. Perez and Mr. Molina. The Audit Committee
was composed of directorsMr. Corbo and Mr. Molina, who meet the applicable
independence requirements according to the criteria established in the
Securities ExchangeAct of 1934, the Sarbanes-Oxley Act of 2002 and the rules
of the New York Stock Exchange. In addition, the Board of Directors
resolvedthat Mr. Perez will participate in the Audit Committee meetings as an
observer.
The Ordinary Shareholders' Meeting, it was resolved to maintainthe Directors'
remuneration agreed at the previous Ordinary Shareholders' Meeting, which
consists of a monthly gross compensationfor attendance to Board Meetings of UF
100 per Director, and UF 200 for the Chairman, independent of the number of
meetings held withinsuch period, plus an amount equivalent to 3% of the
distributed dividends with charge to the Company's profits, for the whole
Board,calculated on a maximum amount equivalent to 50% of the distributable
net income for the year, at a rate of one-ninth for each Directorand in
proportion to the time each one served as such during the year 2023.
The aforementioned Shareholders' Meeting also agreed to maintainthe
remuneration of Directors that are members of the Directors Committee,
consisting of a monthly gross fee for attendance to DirectorsCommittee
meetings, independent of the number of meetings held during the period, of UF
50, plus the corresponding percentage of the distributeddividends until
completing the additional third established in article 50 bis of Law No.
18,046 on Corporations and Circular No. 1,956of the Comision para el Mercado
Financiero (Financial Market Commission); and with respect to those Directors
who are members ofthe Audit Committee, and those appointed as observers of the
same, a monthly gross fee for attendance to Audit Committee meetings,
independentof the number held during the period, of UF 50.
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Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The remunerations of Directors and Chief Executives of the Companyare composed
as follows:
Directors' remunerations:
For the six-months periods ended as of June 30,
2023 2022
ThCh$ ThCh$
Audit's Committee 32,082 31,624
Directors' Committee 45,727 32,147
Attendance meetings fee (*) 726,615 780,757
Dividend Participation 1,049,487 1,576,626
(*) Includes accrued per diem in 2023 of Director Maria GabrielaCadenas.
Chief Executives' remunerations:
For the six-months periods ended as of June 30,
2023 2022
ThCh$ ThCh$
Directors' Committee 6,369 5,662
Attendance meetings fee 116,863 113,988
Dividend Participation 47,132 36,159
The Chief Executives' Remuneration as of June 30, 2023 amountedto ThCh$
6,332,617 (ThCh$ 6,089,856 as of June 30, 2022). The Company grants to the
Chief Executives annual bonuses, which have an optionaland variable nature,
not contractual and assigned according to compliance of individual and
corporate goals and based on the incomes ofthe period.
Note12 Inventories
The inventories balances are detailed as follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Finished products 169,990,602 184,684,428
In process products 23,626,912 23,070,478
Raw material 263,392,224 244,040,653
Existence in transit 20,086,125 21,209,137
Materials and products 14,372,033 13,075,171
Realizable net value estimate and obsolescence (5,693,202) (5,280,333)
Total 485,774,694 480,799,534
For the period ended as of June 30, 2023 and 2022, the Company wroteoff a
total of ThCh$ 2,809,981 and ThCh$ 864,206, against net realizable value and
obsolescence, respectively.
Additionally, the Company presents an estimate for inventory impairmentwhich
includes amounts related to low turnover, technical obsolescence and/or
products recalled from the market.
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Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The movement of net realizable value and obsolescence estimate isdetailed as
follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Initial balance (5,280,333) (3,176,553)
Inventories write-down estimation (3,560,416) (4,756,848)
Inventories recognised as an expense 2,809,981 2,371,770
Business combinations effect 337,566 281,298
Total (5,693,202) (5,280,333)
As of June 30, 2023 and December 31, 2022, the Company does nothave any
inventory pledged as guarantee for financial obligations.
Note13 Biologicalassets
The Company recorded under Current biological assets the agriculturalactivities
(grapes) derived from production of plantations that will be destined to be an
input to the following process of the wine production.
The costs associated to the agricultural activities (grapes) areaccumulated to
the harvest date.
The valuation of current biological assets is described in
Note2 - Summary of significant accounting policies, 2.10
.
The movement of current biological assets is detailed as follows:
ThCh$
As of January 1, 2022
Historic cost 12,546,705
Book Value 12,546,705
As of December 31, 2022
Conversion effect (776,552)
Acquisitions 31,215,697
Decreases due to harvesting (27,132,201)
Other increases (decreases) (1) 326,644
Sub-Total 3,633,588
Book Value 16,180,293
As of December 31, 2022
Historic cost 16,180,293
Book Value 16,180,293
As of June 30, 2023
Conversion effect (914,820)
Acquisitions 18,706,221
Decreases due to harvesting (33,266,132)
Other increases (decreases) (1) 841,703
Sub-Total (14,633,028)
Book Value 1,547,265
As of June 30, 2023
Historic cost 1,547,265
Book Value 1,547,265
(1) Mainly corresponds to the financial effect of the applicationIAS 29
"Financial reporting in hyperinflationary economies".
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Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note14 Non-current assets of disposal groups classified as held for sale
a) International Business Operating segment
- During September 2015, the Board of subsidiarySaenz Briones & Cia. S.A.I.C. authorized the sale of property
located in Lujan de Cuyo city, Province of Mendoza,Argentina. At the date of issuance of these Consolidated
Financial Statements the administration is still committed with a sale plan forthis property. In order to to
seek out a buyer and keep high probabilities to sale it the subsidiary has changed the Real Estate Broker.
b) Wine Operating segment
- In 2015, the Board of Vina Valles deChile S.A. ("VVCH") which is Vina San Pedro Tarapaca S.A.,
authorized the sale of certain fixed assets locatedin Rengo city, Provincia de Cachapoal, Sexta Region.
At the date of issuance of the Consolidated Financial Statements,this group of
assets, which amounted ThCh$ 1,770,547, were reclassified to Property, plant
and equipment, under the concept of Land, buildings and constructions; the
latterconsidering that the elements required by the IFRS 5 to keep them
classified as Non-current assets held for sale are not met. (See
Note19 - Property, plant and equipment
).
- In November 2022, the Board of Directors of Finca La Celia S.A. authorized the sale of the
property identifiedas Finca Pocito, located in the province of San Juan, Argentina. On November
1, 2022, both the Purchase and Sale Agreement were signedand, together with the acceptance of
the Offer, the partial payment was made according with the agreed price, and the occupnacy
of theproperty was passed. It is expected that during the year 2023 the purchasers will complete
the payment of the agreed price and the propertyownership deed will be generated, materializing
the sell. This transaction generated a loss in our results of ThCh$ 641,684 resultingfrom
the lower book value to which the property was sold, discounting the costs to sell (See
Note 32- Other gains (losses)
).
As described in
Note 2 - Summaryof significant accounting policies, 2.18
, non-current assets of disposal groups classified as held for sale have been
recordedat the lower of carrying amount and fair value less cost to sale as of
June 30, 2023.
Assets held for sale are detailed as follows:
Non-current assets of disposal groups classified as held for sale As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Land 1,419,821 1,428,465
Constructions 339,131 341,197
Machinery 20,014 20,135
Vines in formation (plantations) 224,871 226,240
Total 2,003,837 2,016,037
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Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note15 Business Combinations
a) D&D SpA.
Pursuant to the provisions of the share purchase and sale agreemententered
into on June 7, 2022 between the subsidiary Compania Pisquera de Chile S.A. as
purchaser and by Panda SpA. and MBBSpA, as sellers (the Sellers), on December
29, 2022 CPCh formalized the acquisition of 51.0132% of the shares of D&D SpA,
throughthe subscription of a capital increase and on December 30, 2022 through
the purchase of shares from the Sellers. Both operations weresubject to the
fulfillment of certain conditions, which were resolved on January 20, 2023.
As explained above, on January 20, 2023, CPCh paid ThCh$ 1,250,000(equivalent
to 444 shares at ThCh$ 2,815.315 each), and also subscribed and paid 135
shares issued in connection with the capital increaseagreed at an
extraordinary shareholders' meeting of the company, for which CPCh paid ThCh$
1,481.481 for each share, totaling ThCh$ 200,000,CPCh is now the holder of 579
shares, representing 51.0132% of its total capital stock. At the same time,
the parties expressly statethat they have agreed that this price will be
subject to an increase based on the cases and forms indicated in the share
purchase agreement.
On February 14, 2023, CPCh paid the Sellers ThCh$ 750,000, correspondingto the
first price increase.
Additionally, for this business combination, another price increasewas
recognized, as indicated in
Note 11 - Balances and transactions with related parties, number (5)
.
For the business combination described above, the provisional fairvalues of
the assets and liabilities have been determined (See
Note 1 - General Information letterC), number (11)).
Note16 Investmentsaccounted for using equity method
Joint ventures and Associates
As of June 30, 2023 and December 31, 2022, the Company recordedinvestments
qualifying as joint venture and associates.
The share value of investments in joint ventures and associatesare detailed as
follows:
Percentage of participation As of June 30, 2023 As of December 31, 2022
% ThCh$ ThCh$
Cerveceria Austral S.A. 50,00 11,733,866 10,829,522
Central Cervecera de Colombia S.A.S. 50,00 22,696,299 21,228,654
Zona Franca Central Cervecera S.A.S. 50,00 88,704,076 84,611,035
Aguas de Origen S.A. 50,00 14,598,188 19,832,320
Total joint ventures 137,732,429 136,501,531
Aguas Danone de Argentina S.A. 49,00 3,524,060 3,565,708
Other companies 1,005,351 858,773
Total associates 4,529,411 4,424,481
Total 142,261,840 140,926,012
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Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The above mentioned values include goodwill generated in the acquisitionof the
following joint venture and associate, which are presented net of any
impairment loss:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Cerveceria Austral S.A. 1,894,770 1,894,770
Aguas de Origen S.A. 103,920 104,552
Aguas Danone de Argentina S.A. 2,322,114 2,336,251
Total 4,320,804 4,335,573
The share of net income (loss) of joint ventures and associatesaccounted for
using the equity method are detailed as follows:
For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Central Cervecera (4,197,248) (4,010,909) (2,167,520) (1,932,683)
de Colombia S.A.S.
Zona Franca Central (2,045,387) 562,879 (894,914) (157,414)
Cervecera S.A.S.
Aguas de Origen S.A. (5,307,875) - (3,488,573) -
Cerveceria Austral S.A. 1,409,173 783,072 334,873 (6,810)
Total joint ventures (10,141,337) (2,664,958) (6,216,134) (2,096,907)
Aguas Danone de (20,036) (1,743,735) (122,118) (1,743,735)
Argentina S.A.
Other companies 162,693 6,986 158,342 3,576
Total associates 142,657 (1,736,749) 36,224 (1,740,159)
Total (9,998,680) (4,401,707) (6,179,910) (3,837,066)
Changes in investments in joint ventures and associates are detailedas follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Balance at the beginning of year 140,926,012 138,114,480
Other payments to acquire 4,176,846 36,465,915
interests in joint ventures
Share of net income (loss) of joint ventures and (9,998,680) (10,978,068)
associates accounted for using the equity method
Dividends received (536,750) (4,164,922)
Others (*) 7,694,412 (18,511,393)
Total 142,261,840 140,926,012
(*) Mainly includes effects from the foreign currencyof joint ventures.
Significant matters regarding investments accounted for using theequity method
are detailed as follows:
(1) Cerveceria Austral S.A.
It is a closed stock company that operates as a beer manufacturingfacility in
the southern end of Chile, which is the southernmost brewery in the world.
(2) Central Cervecera de Colombia S.A.S. and Zona Franca CentralCervecera S.A.S.
On November 10, 2014, CCU, directly and through its subsidiariesCCU
Investments II SpA., and Grupo Postobon have established a joint arrangement
through a company named Central Cervecera de ColombiaS.A.S. (the "Company"),
in which CCU and Grupo Postobon participate as equal shareholders. The purpose
of this Companyis the beer and non-alcoholic drinks production, marketing and
distribution based on malt (Products).
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75
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Subsequently, on August 16, 2017, CCU, through its subsidiary CCUInvestments
ll Limitada, acquired 50% of the shares of a company incorporated in Colombia
called Zona Franca Central Cervecera S.A.S.(ZF CC), which relates to a joint
agreements and that qualifies as a joint operation, in which CCU and Grupo
Postobon participateas equal shareholders. The amount of this transaction was
USD 10,204, equivalents to ThCh$ 6,432. The purpose of ZF CC is acting
exclusivelyas industrial user of one or more free trade zones; manufacturing
and selling products of its own brands and through licenses to CCC,CCC markets
these products.
For the purposes above, previous associations involve the constructionof a
beer production plant, with an annual total capacity of 3,000,000 hectoliters.
As of June 30, 2023 and December 31, 2022, the amount of capitalcontributions
to CCC and ZF CC amounts to USD 304,170,191 and USD 298,959,619 (equivalent to
ThCh$ 206,283,598 and ThCh$ 202,106,752 based on the exchange rates at the
dates ofthe contributions), respectively.
(3) Aguas Danone de Argentina S.A. and Aguas de Origen S.A.
On April 28, 2022, CCU through its subsidiary, CompaniaCervecerias Unidas
Argentina S.A. acquired 49% of the ownership of Aguas Danone de Argentina S.A.
("ADA"), which includesthe business of mineral waters, flavored waters and
powdered juices with its brands Villavicencio, Villa del Sur, Levite, Ser
andBrio (the "Transaction"). The Transaction included share acquisition and
capital contributions in Argentine pesos totalingUSD 28.8 million (equivalent
to ThCh$ 27,386,281).
According to a public deed dated April 28, 2022, the subsidiaryCompania
Cervecerias Unidas Argentina S.A., acquired 49,000 ordinary, nominative,
non-endorsable shares of Aguasde Origen S.A. ("ADO"), at a value of one
Argentine peso each, reaching a 49% interest in this company. The effective
paymentof this acquisition was made on August 26, 2022.
It should be noted that Aguas de Origen S.A. ("ADO"),is the contination the
business of Aguas Danone de Argentina S.A., whish was efective as of December
1, 2022 as a result of the spin-off-mergerapproved by the shareholders'
meeting of Aguas Danone de Argentina S.A. and Aguas de Origen S.A. on June 30,
2022.
On November 30, 2022, a purchase of 634,061 shares equivalent toThCh$ 542,974
was made from Holding Internationale De Boissons S.A.S., which corresponds to
1% of the shares of "ADO", thusreaching a 50% shareholding in this company.
On March 30, 2023, at an Extraordinary Shareholders' Meeting ofAguas de Origen
S.A., it was agreed to increase capital and set a share premium by the
shareholder Holding Internationale De BoissonsS.A.S., resulting in a capital
increase of ARS 1 and a share premium of ARS 80,158,267 (equivalent to ThCh$
296,557 as of June 30, 2023).In another Extraordinary Meeting held on the same
day, the subsidiary Compania Cervecerias Unidas Argentina S.A.,also made a
capital stock contribution of ARS 1, consequently, both shareholders
maintained the same participation in this company.
The Company does not have any contingent liabilities related tojoint ventures
and associates as June 30, 2023.
F-
76
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Summarized financial information for associates and joint ventures:The tables
below provide summarized financial information for those joint ventures and
associates that are material to the group. Theinformation disclosed reflects
the amounts presented in the financial statements of the relevant associates
and joint ventures and notthe Company's share of those amounts. They have been
amended to reflect adjustments made by the entity when using the equity
method, includingfair value adjustments.
Associated Joint ventures
As of June 30, 2023 As of December 31, 2022 As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$ ThCh$ ThCh$
Assets and Liabilities
Current assets 308,201 1,002,278 158,774,406 185,086,705
Non-current assets 2,879,654 3,554,693 318,203,680 287,017,890
Current liabilities (229,886) 885,460 117,571,097 127,663,233
Non-current liabilities (505,007) 1,162,416 86,840,290 75,013,628
Associated Joint ventures
For the six-months periods ended as of June 30,
2023 2023 2022
ThCh$ ThCh$ ThCh$
Income Statement (Summarized)
Net sales 70,385 196,131,752 215,874,698
Operating result (229,350) (18,899,166) (9,587,343)
Net income for period (40,890) (19,486,368) (10,822,992)
Other comprehensive income (40,890) 18,832,428 20,130,143
Depreciation and amortization (222,871) (10,726,064) (12,203,611)
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77
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 17 Intangible assets otherthan goodwill
The intangible assets movement are detailed as follows:
Trademarks Software programs Water rights Distribution rights Total
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
As of January 1, 2022
Historic cost 121,643,175 54,399,144 3,199,349 2,880,324 182,121,992
Accumulated amortization - (29,320,555) - (857,744) (30,178,299)
Book Value 121,643,175 25,078,589 3,199,349 2,022,580 151,943,693
As of December 31, 2022
Additions (2) 12,950,000 2,416,575 - 613,295 15,979,870
Amortization of year - (4,454,798) - (153,637) (4,608,435)
Conversion effect (cost) (20,964,262) (1,064,314) - (6,019) (22,034,595)
Conversion effect (amotization) - 379,453 - 104,772 484,225
Other increases (decreases) (1) 28,918,297 1,624,386 - 82,231 30,624,914
Sub-Total 20,904,035 (1,098,698) - 640,642 20,445,979
Book Value 142,547,210 23,979,891 3,199,349 2,663,222 172,389,672
As of December 31, 2022
Historic cost 142,547,210 57,375,791 3,199,349 3,569,831 206,692,181
Accumulated amortization - (33,395,900) - (906,609) (34,302,509)
Book Value 142,547,210 23,979,891 3,199,349 2,663,222 172,389,672
As of June 30, 2023
Additions - 3,288,867 - - 3,288,867
Additions for business combinations (cost) (3) 1,962,891 - - - 1,962,891
Divestitures (cost) - (74,540) - - (74,540)
Divestitures (amortization) - 74,540 - - 74,540
Amortization of period - (3,318,297) - (80,151) (3,398,448)
Conversion effect (cost) (21,992,694) (936,792) - (134,057) (23,063,543)
Conversion effect (amotization) - 410,224 - 98,587 508,811
Other increases (decreases) (1) 20,573,070 508,932 - 14,226 21,096,228
Sub-Total 543,267 (47,066) - (101,395) 394,806
Book Value 143,090,477 23,932,825 3,199,349 2,561,827 172,784,478
As of June 30, 2023
Historic cost 143,090,477 60,162,258 3,199,349 3,450,000 209,902,084
Accumulated amortization - (36,229,433) - (888,173) (37,117,606)
Book Value 143,090,477 23,932,825 3,199,349 2,561,827 172,784,478
(1) Corresponds to the financial effect of the application IAS 29 "Financialreporting in hyperinflationary economies".
(2) See
Note 1 - General information, letterC), number (7)
.
(3) See
Note 1 - General information, letterC), number (11)
.
There are no restrictions or pledges on intangible assets.
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Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The cash generating units associated to the trademarks are detailedas follows:
Segment Cash Generating Unit As of June 30, 2023 As of December 31, 2022
(CGU) ThCh$ ThCh$
Chile Embotelladoras Chilenas Unidas S.A. 32,551,592 33,003,901
Manantial S.A. 1,166,000 1,166,000
Compania Pisquera de Chile S.A. (1) 3,326,673 1,363,782
Cerveceria Kunstmann S.A. (2) 15,064,351 15,064,351
Sub-Total 52,108,616 50,598,034
International Business CCU Argentina S.A. and subsidiaries 58,730,822 59,088,046
Marzurel S.A., Coralina S.A. and Milotur S.A. 2,650,416 2,641,563
Bebidas del Paraguay S.A. and Distribuidora del Paraguay S.A. 3,370,117 3,563,156
Bebidas Bolivianas BBO S.A. 6,284,196 6,709,069
Sub-Total 71,035,551 72,001,834
Wines Vina San Pedro Tarapaca S.A. 19,946,310 19,947,342
Sub-Total 19,946,310 19,947,342
Total 143,090,477 142,547,210
(1) See
Note 1 - General information, letterC), number (11)
.
(2) See
Note 1 - General information, letterC), number (7)
.
Management has carried out impairment tests, from which no evidenceof
impairment has emerged. Regarding Trademarks with an indefinite useful life,
the same methodology has been used as indicated in
Note18 - Goodwill.
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Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note18 Goodwill
The goodwill movement is detailed as follows:
Goodwill
ThCh$
As of January 1, 2022
Historic cost 131,172,835
Book Value 131,172,835
As of December 31, 2022
Other increases (decreases) (1) 19,526,568
Conversion effect (13,729,969)
Sub-Total 5,796,599
Book Value 136,969,434
As of December 31, 2022
Historic cost 136,969,434
Book Value 136,969,434
As of June 30, 2023
Additions for business combinations (2) 1,657,419
Other increases (decreases) (1) 13,891,942
Conversion effect (15,001,255)
Sub-Total 548,106
Book Value 137,517,540
As of June 30, 2023
Historic cost 137,517,540
Book Value 137,517,540
(1) Corresponds to the financial effect of the application IAS 29 "Financialreporting in hyperinflationary economies".
(2) See
Note 1 - General information, letterC), number (11)
.
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Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
For the purpose of impairment testing, goodwill acquired in a businesscombinatio
n is allocated as of the acquisition date to each of the CGUs, or groups of
CGUs that is expected to benefit from the businesscombination synergies. The
carrying amount of goodwill assigned to the CGUs within the Company's segments
is detailed as follows:
Segment Cash Generating Unit As of June 30, 2023 As of December 31, 2022
(CGU) ThCh$ ThCh$
Chile Embotelladoras Chilenas Unidas S.A. 25,257,686 25,257,686
Manantial S.A. 8,879,245 8,879,245
Compania Pisquera de Chile S.A. 9,808,550 9,808,550
Los Huemules S.R.L. 1,471 2,277
D&D SpA. (1) 1,657,419 -
Cerveceria Kunstmann S.A. 456,007 456,007
Cerveceria Szot SpA. 202,469 202,469
Sub-Total 46,262,847 44,606,234
International Business CCU Argentina S.A. and subsidiaries 39,707,214 39,949,114
Marzurel S.A., Coralina S.A. and Milotur S.A. 4,837,066 4,815,276
Bebidas del Paraguay S.A. and Distribuidora del Paraguay S.A. 4,985,082 5,244,087
Bebidas Bolivianas BBO S.A. 9,309,187 9,938,579
Sub-Total 58,838,549 59,947,056
Wines Vina San Pedro Tarapaca S.A. 32,416,144 32,416,144
Sub-Total 32,416,144 32,416,144
Total 137,517,540 136,969,434
(1) See
Note 1 - General information, letterC), number (11)
.
Goodwill assigned to the CGUs is subject to impairment test on anannually
basis or more frequently if there are signs of potential impairment. These
signs may include a significant change in the economicenvironment that could
affect the business scenario, new legal provisions, operational performance
indicators or the disposal of an importantpart of a CGU. The impairment loss
is recognized for the amount by which the carrying amount of the CGU exceeds
its recoverable amount.The recoverable value of each CGU is determined as the
highest amount between its value in use and its fair value minus the cost of
selling.The management considers that the value in use approach, determined by
a discounted cash flow model, is the most reliable method to determinethe
recoverable values of the CGU.
The following table shows the most relevant inputs for each CGUin where there
is a relevant Goodwill and / or intangible assets with indefinite useful life
assigned:
Chile Argentina Uruguay Paraguay Bolivia
Estimated CAPEX for the year 2023 ThCh$ 127,717 38,129 1,671 3,324 1,417
Perpetual growth 3.00% 2.50% 2.20% 2.20% 4.40%
Discount rate 8.67% 28.20% 11.50% 12.43% 13.96%
The following describes some considerations applied when determiningthe
corresponding values in use of the CGUs that have Goodwill and / or intangible
assets with indefinite useful life assigned:
Projection period:
A five-year horizon is considered for all units / brands. An exceptionally
longer period of time (no longer than ten years), is consideredfor those units
/ brands that require a longer maturation period.
Cash Flow
:
To determine the value in use, the Company has used cash flow projections in
line with the time horizon described above, based on budgets,strategic plans
and projections reviewed by management for the same period of time. Given the
maturity of our business, these budgetshave been historicaly consistent with
the results. Management's cash flow projection included significant judgements
and assumptionsrelating to perpetual growth rates and discount rates.
F-
81
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Perpetual growth
:
Although the Company expects a higher volume and price growth in the medium
and long term, a nominal growth of 3% has been assumed forthe perpetuity in
Chilean units, which is a conservative assumption considering the historical
capacity and nature of the business wherethe company operates. In the case of
Uruguay a perpetuity rate of 2.2% is used, consistent with the expected
long-term growth for thiscountry. For Bolivia a perpetuity rate of 4.4%
equivalent to long-term inflation of the country plus a percentage of the
potential long-termGDP are used, In the case of Argentina, a perpetuity rate
of 2.5% are used respectively, which are composed by the average inflation
rateof the United States of America mentioned above, plus a percentage of the
potential long-term GDP in each country.
Discount rate
:
Corresponds to the nominal WACC (Weighted Average Cost of Capital) rate of
each country.
According to the calculated sensitivities, the Administration determinesthat
there is no reasonably possible change in the assumptions mentioned above that
could cause that the book value exceeds the estimatedrecoverable value as of
June 30, 2023.
F-
82
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 19 Property, plant andequipment
Property, plant and equipment movements are detailed as follows:
Land, Machinery and Bottles and Other Assets under Furniture, Under Total
buildings equipment containers Equipment contruction accessories production
and and vehicles vines
construction
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
As of January
1, 2022
Historic cost 790,813,382 691,181,931 194,726,856 147,793,572 195,282,050 83,225,686 38,465,102 2,141,488,579
Accumulated (252,590,764) (376,384,175) (116,338,645) (101,641,643) - (56,210,408) (16,061,490) (919,227,125)
depreciation
Book Value 538,222,618 314,797,756 78,388,211 46,151,929 195,282,050 27,015,278 22,403,612 1,222,261,454
As of December
31, 2022
Additions - - - - 197,387,873 - - 197,387,873
Transfers 61,166,714 79,898,704 22,694,028 19,887,613 (200,131,448) 9,568,259 6,915,853 (277)
Transfers (1,765,306) (36,934) - - - - (615,461) (2,417,701)
to Assets
held for
sale (cost)
Transfers to 30,707 29,939 - - - - 287,546 348,192
Assets held
for sale
(depreciation)
Transfers 1,770,547 - - - - - - 1,770,547
from Assets
held from
sale (cost)
Conversion (29,680,592) (54,111,392) (34,138,268) (9,104,748) (7,821,487) (781,851) (2,238,221) (137,876,559)
effect
historic
(cost)
Write off (6,648,641) (9,972,059) (2,248,000) (84,791) - (1,255,691) - (20,209,182)
(cost)
Write off 6,535,423 9,970,855 2,172,805 77,589 - 1,254,399 - 20,011,071
(depreciation)
Capitalized - - - - 797,442 - - 797,442
interests
Depreciation (24,493,237) (38,579,233) (25,171,425) (15,552,044) - (6,609,355) (1,808,857) (112,214,151)
Conversion 1,821,057 8,082,936 14,171,760 5,747,971 - 528,252 - 30,351,976
effect
(depreciation)
Other 34,879,083 59,737,810 27,530,952 4,432,463 25,533,318 271,976 5,587,805 157,973,407
increases
(decreases)
(1)
Divestitures (401,557) (65,792) (20,065,136) (7,645,330) - (629,411) (392,883) (29,200,109)
(cost)
Divestitures 63,935 50,276 19,750,911 7,307,878 - 365,518 323,801 27,862,319
(depreciation)
Sub-Total 43,278,133 55,005,110 4,697,627 5,066,601 15,765,698 2,712,096 8,059,583 134,584,848
Book Value 581,500,751 369,802,866 83,085,838 51,218,530 211,047,748 29,727,374 30,463,195 1,356,846,302
As of December
31, 2022
Historic cost 862,106,306 813,091,440 253,015,079 164,415,831 211,047,748 91,014,222 48,703,199 2,443,393,825
Accumulated (280,605,555) (443,288,574) (169,929,241) (113,197,301) - (61,286,848) (18,240,004) (1,086,547,523)
depreciation
Book Value 581,500,751 369,802,866 83,085,838 51,218,530 211,047,748 29,727,374 30,463,195 1,356,846,302
As of June
30, 2023
Additions - - - - 53,157,451 - - 53,157,451
Additions for 181,006 534,269 - - - 79,094 - 794,369
business
combinations
(cost) (2)
Additions for (18,054) (100,613) - - - (20,076) - (138,743)
business
combinations
(depreciation) (2)
Transfers 13,700,641 22,306,009 16,514,554 8,993,540 (66,522,932) 4,986,075 22,113 -
Conversion (31,311,629) (54,381,730) (31,128,385) (8,005,862) (14,113,776) (852,459) (2,362,374) (142,156,215)
effect
historic
(cost)
Write off (409,818) (3,643,720) (148,395) (2,754,271) - (452,192) - (7,408,396)
(cost)
Write off 375,578 3,203,828 147,395 2,754,009 - 425,559 - 6,906,369
(depreciation)
Capitalized - - - - 259,290 - - 259,290
interests
Depreciation (12,259,170) (17,617,608) (12,479,972) (7,958,744) - (4,768,749) (914,855) (55,999,098)
Conversion 1,885,812 9,204,156 12,219,462 4,869,975 - 336,169 - 28,515,574
effect
(depreciation)
Other 27,280,258 45,564,170 19,128,680 2,728,581 13,821,378 489,054 2,322,809 111,334,930
increases
(decreases)
(1)
Divestitures (11,320) (147,250) - (4,226) - (39,233) - (202,029)
(cost)
Divestitures 11,320 78,644 - 176 - 27,752 - 117,892
(depreciation)
Sub-Total (575,376) 5,000,155 4,253,339 623,178 (13,398,589) 210,994 (932,307) (4,818,606)
Book Value 580,925,375 374,803,021 87,339,177 51,841,708 197,649,159 29,938,368 29,530,888 1,352,027,696
As of June
30, 2023
Historic cost 872,294,189 826,565,629 257,412,475 165,392,474 197,649,159 95,366,309 49,839,766 2,464,520,001
Accumulated (291,368,814) (451,762,608) (170,073,298) (113,550,766) - (65,427,941) (20,308,878) (1,112,492,305)
depreciation
Book Value 580,925,375 374,803,021 87,339,177 51,841,708 197,649,159 29,938,368 29,530,888 1,352,027,696
(1) Corresponds to the financial effect of the application IAS 29 "Financialreporting in hyperinflationary economies"
(2) See
Note 1 - General information, letterC), number (11)
.
F-
83
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The balance of the land at the end of each period is as follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Land 280,046,459 280,329,704
Total 280,046,459 280,329,704
Capitalized interest as of June 30, 2023 amounted ThCh$ 259,290(ThCh$ 471,823
as of December 31, 2022, using an annually capitalization rate of 3.28% (3.30%
as of June 30, 2022).
The Company, through its subsidiary Vina San Pedro TarapacaS.A., has
biological assets corresponding to vines that produce grapes. The vines are
segmented into those under formation and those underproduction, and they are
grown both on leased and owned land, The grapes harvested from these vines are
used in the manufacturing of wine,which is marketed both in the domestic
market and abroad.
As of June 30, 2023, the Company maintained approximately 4,980hectares of
which 4,350 are for vines in production stage. Of the total hectares mentioned
above, 4,114 correspond to own land and 236to leased land.
The vines under formation are recorded at historic cost, and onlystart being
depreciated when they are transferred to the production phase, which occurs in
the majority of cases in the third year afterplantation, when they start
producing grapes commercially (in volumes that justify their production-oriented
handling and later harvest).
During 2023, the production in plant vines yield was approximately63.5 million
kilos of grapes (58.7 million kilos of grapes in 2022).
By the nature of business of the Company, in the value of the assetsit is not
considered to start an allowance for cost of dismantling, removal or
restoration.
In relation to impairment losses on Property, plant and equipment,Management
has analyzed internal and external indicators and has not found evidence of
impairment at June 30, 2023.
The depreciation for the three-months ended as of June 30, 2023and 2022,
recognized in net income and other assets is as follows:
As of June 30, 2023 As of June 30, 2022
ThCh$ ThCh$
Recognized in net incomes (*) 55,398,163 56,225,072
Recognized in others assets 600,935 477,819
Total 55,999,098 56,702,891
(*)Includes ThCh$ 889,259 (ThCh$ 987,377 as of June 30, 2022) of depreciation
of agricultural assets (barrels), related to the cost of sellingwine.
F-
84
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note20 Investment Property
Investment property movements are detailed as follows:
Land Buildings Total
ThCh$ ThCh$ ThCh$
As of January 1, 2022
Historic cost 7,113,560 3,346,699 10,460,259
Accumulated depreciation - (908,645) (908,645)
Book Value 7,113,560 2,438,054 9,551,614
As of December 31, 2022
Transfers from PPE (cost) 277 - 277
Divestitures (121,880) - (121,880)
Depreciation - (85,267) (85,267)
Conversion effect (cost) (1,859,082) (712,681) (2,571,763)
Conversion effect (depreciation) - 66,700 66,700
Other increases (decreases) (1) 2,528,154 916,159 3,444,313
Sub-Total 547,469 184,911 732,380
Book Value 7,661,029 2,622,965 10,283,994
As of December 31, 2022
Historic cost 7,661,029 3,550,177 11,211,206
Accumulated depreciation - (927,212) (927,212)
Book Value 7,661,029 2,622,965 10,283,994
As of June 30, 2023
Additions - 51,422 51,422
Depreciation - (45,082) (45,082)
Conversion effect (cost) (1,829,943) (682,767) (2,512,710)
Conversion effect (depreciation) - 53,742 53,742
Other increases (decreases) (1) 1,798,620 618,260 2,416,880
Sub-Total (31,323) (4,425) (35,748)
Book Value 7,629,706 2,618,540 10,248,246
As of June 30, 2023
Historic cost 7,629,706 3,537,092 11,166,798
Accumulated depreciation - (918,552) (918,552)
Book Value 7,629,706 2,618,540 10,248,246
(1) Corresponds to the financialeffect of the application IAS 29 Financial
reporting in hyperinflationary economies.
Investment property includes seventeen land properties, two officesand one
apartment, situated in Chile, which are maintained for appreciation purposes,
recording no income in 2023 (ThCh$ 2,780 as of June30, 2022). Additionally,
there are four properties in Argentina, which are leased and generated an
income for ThCh$ 75,946 for period2023 (ThCh$ 64,375 as on June 30, 2022). In
addition, the expenses associated with such investment properties amounted to
ThCh$ 61,221for the period ended as of June 30, 2023 (ThCh$ 45,689 as of June
30, 2022).
The market valuation of investment properties exceeds 100% of thebook value.
The fair value, of investment property that represent 96% of thecarrying
amount is ThCh$ 17,281,766.
Management has not detected evidence of impairment of investmentproperty.
The Company does not maintain any pledge or restriction over investmentproperty
items.
F-
85
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 21 Other financial liabilities
Debts and financial liabilities classified according to the typeof obligation
and their classifications in the Interim Consolidated Financial Statements are
detailed as follows:
As of June 30, 2023 As of December 31, 2022
Current Non-current Current Non-current
ThCh$ ThCh$ ThCh$ ThCh$
Bank borrowings (1) 29,621,543 174,395,287 134,737,116 84,839,970
Bonds payable (1) 44,578,074 1,048,761,511 30,871,086 1,081,682,928
Derivatives not designated as hedges (2) 4,164,151 - 3,753,264 -
Derivatives designated as hedges (2) 4,166,922 9,685,408 4,605,695 9,183,801
Deposits for return of bottles and containers 12,030,404 - 11,912,090 -
Option contract liability (3) 25,660,014 - - -
Total 120,221,108 1,232,842,206 185,879,251 1,175,706,699
(1) See
Note 5 - Risk administration
.
(2) See
Note 7 - Financial instruments
.
(3) See
Note 1 - General information,letter C), number (9)
.
F-
86
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Current bank borrowings and bonds payable
The maturities and interest rates of these obligations are detailedas follows:
As of June 30, 2023:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency 0 to 3 3 months Total Type of Interest
Tax ID country party name country months to 1 year amortization Rate
Tax ID
ThCh$ ThCh$ ThCh$ (%)
Bank
borrowings
76,035,409-0 Cervecera Chile 97,004,000-5 Banco de Chile UF 1,717 5,238 6,955 Monthly 3.39
Guayacan Chile
SpA.
76,035,409-0 Cervecera Chile 97,004,000-5 Banco de Chile UF 2,567 8,397 10,964 Monthly 5.65
Guayacan Chile
SpA.
76,920,876-3 D&D SpA. Chile 97,006,000-6 Banco de Chile CLP - 24,852 24,852 At maturity 6.96
Credito
e
Inversiones
76,920,876-3 D&D SpA. Chile 97,006,000-6 Banco de Chile CLP 18,754 - 18,754 At maturity 3.50
Credito
e
Inversiones
90,413,000-1 Compania Chile 97,030,000-7 Banco del Chile CLP - 542,100 542,100 At maturity 8.34
Cervecerias Estado
Unidas S.A. de Chile
90,413,000-1 Compania Chile 97,030,000-7 Banco del Chile CLP - 1,523,625 1,523,625 At maturity 7.17
Cervecerias Estado
Unidas S.A. de Chile
91,041,000-8 Vina San Chile 97,030,000-7 Banco del Chile CLP 12,492 - 12,492 At maturity 11.74
Pedro Estado
Tarapaca de Chile
S.A.
91,041,000-8 Vina San Chile 76,645,030-K Banco Itau Chile USD 21,651,217 - 21,651,217 At maturity 5.32
Pedro Corpbanca
Tarapaca
S.A.
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP 78,300 - 78,300 At maturity 8.70
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP - 33,367 33,367 At maturity 8.58
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP - 16,527 16,527 At maturity 8.04
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP 214,874 - 214,874 At maturity 8.60
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP - 55,701 55,701 At maturity 8.00
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,018,000-1 Scotiabank Chile CLP 28,880 - 28,880 At maturity 3.95
Kunstmann Chile
S.A.
96,981,310-6 Cerveceria Chile 97,018,000-1 Scotiabank Chile CLP - 1,658,355 1,658,355 Semiannual 3.45
Kunstmann Chile
S.A.
99,586,280-8 Compania Chile 97,030,000-7 Banco del Chile CLP 593,003 - 593,003 At maturity 8.66
Pisquera Estado
de Chile de Chile
S.A.
0-E Finca La Argentina 0-E Patagonia Argentina USD 121,669 - 121,669 At maturity 3.75
Celia S.A.
0-E Finca La Argentina 0-E Patagonia Argentina USD 162,062 - 162,062 At maturity 3.75
Celia S.A.
0-E Finca La Argentina 0-E Supervielle Argentina USD - 285,524 285,524 At maturity 3.75
Celia S.A.
0-E Finca La Argentina 0-E Supervielle Argentina USD - 161,587 161,587 At maturity 5.50
Celia S.A.
0-E Finca La Argentina 0-E Supervielle Argentina USD 251,804 - 251,804 At maturity 5.25
Celia S.A.
0-E Finca La Argentina 0-E Patagonia Argentina USD 203,298 - 203,298 At maturity 3.75
Celia S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 3,114 241,880 244,994 Semiannual 5.30
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 3,794 529,833 533,627 Semiannual 5.95
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 2,915 241,880 244,795 Semiannual 5.30
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 24,247 - 24,247 Quarterly 5.00
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 46,927 - 46,927 Quarterly 5.00
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 1,809 - 1,809 Semiannual 5.50
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 2,490 115,181 117,671 Semiannual 5.30
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 4,981 230,362 235,343 Semiannual 5.30
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 3,629 506,797 510,426 Semiannual 5.95
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 5,794 - 5,794 Semiannual 5.55
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
Total 23,440,337 6,181,206 29,621,543
(*)
The amount basedon the undiscounted contractual flows is found in
Note 5 - Risk administration
,
Maturity (*)
Debtor Company Debtor Registration ID No. Creditor Currency 0 to 3 3 months Total Type of Inter
Tax ID country Instrument country months to 1 year amortization Rat
ThCh$ ThCh$ ThCh$ (%)
Bond
payable
90,413,000-1 Compania Chile Bond H 573 Chile UF 3,838,373 3,263,061 7,101,434 Semiannual 4
Cervecerias 23/03/2009
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond J 898 Chile UF 1,213,542 3,780 1,217,322 Semiannual 2
Cervecerias 28/06/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond L 897 Chile UF - 27,361,282 27,361,282 Semiannual 1
Cervecerias 28/06/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond M 898 Chile UF - 350,918 350,918 Semiannual 1
Cervecerias 28/06/2018
Unidas S.A.
90,413,000-1 Compania Chile Bond 144A/Regulacion United USD 6,446,361 - 6,446,361 Semiannual 3
Cervecerias International S States
Unidas S.A.
90,413,000-1 Compania Chile Bond P 897 Chile UF 706,038 19,800 725,838 Semiannual 3
Cervecerias 28/06/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond R 1115 Chile UF 1,088,869 - 1,088,869 Semiannual 2
Cervecerias 20/08/2022
Unidas S.A.
91,041,000-8 Vina San Chile Bond D 986 Chile UF - 286,050 286,050 Semiannual 1
Pedro 12/12/2019
Tarapaca
S.A. (2)
Total 13,293,183 31,284,891 44,578,074
est
e
.25
.90
.20
.60
.35
.35
.70
.00
(1) This obligation is hedged by a Cross Currency Swap agreement,
Note 7 - Financial instruments
.
(2) This obligation is partially hedged by a Cross Currency Swapagreement,
Note 7 - Financial instruments
.
(*)
The amount basedon the undiscounted contractual flows is found in
Note 5 - Risk administration
.
F-
87
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
As of December 31, 2022:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency 0 to 3 3 months Total Type of Inter
Tax ID country party name country months to 1 year amortization Rat
Tax ID
ThCh$ ThCh$ ThCh$ (%)
Bank
borrowings
76,035,409-0 Cervecera Chile 97,004,000-5 Banco de Chile UF 1,645 6,719 8,364 Monthly 3
Guayacan Chile
SpA.
76,035,409-0 Cervecera Chile 97,004,000-5 Banco de Chile UF 2,622 10,587 13,209 Monthly 5
Guayacan Chile
SpA.
76,337,371-1 Bebidas Chile 97,018,000-1 Scotiabank Chile CLP 1,010,488 - 1,010,488 At maturity 3
CCU-PepsiCo Chile
SpA.
90,413,000-1 Compania Chile 97,030,000-7 Banco del Chile CLP 26,710,141 732,067 27,442,208 At maturity 8
Cervecerias Estado
Unidas S.A. de Chile
90,413,000-1 Compania Chile 97,018,000-1 Scotiabank Chile CLP - 96,199,000 96,199,000 At maturity 5
Cervecerias Chile
Unidas S.A.
91,041,000-8 Vina San Chile 97,030,000-7 Banco del Chile USD 2,582,301 - 2,582,301 At maturity 5
Pedro Estado
Tarapaca de Chile
S.A.
96,981,310-6 Cerveceria Chile 97,004,000-5 Banco del Chile CLP 79,750 - 79,750 At maturity 8
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP - 2,006,310 2,006,310 At maturity 1
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP - 1,003,333 1,003,333 At maturity 1
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP 218,128 - 218,128 At maturity 8
Kunstmann Estado
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,018,000-1 Scotiabank Chile CLP 22,881 - 22,881 At maturity 3
Kunstmann Chile
S.A.
96,981,310-6 Cerveceria Chile 97,018,000-1 Scotiabank Chile CLP - 1,662,154 1,662,154 Semiannual 3
Kunstmann Chile
S.A.
99,586,280-8 Compania Chile 97,030,000-7 Banco del Chile CLP 604,555 - 604,555 At maturity 8
Pisquera Estado
de Chile de Chile
S.A.
0-E Compania Argentina 0-E Galicia Argentina ARS - 2,999 2,999 Dialy 0
Industrial
Cervecera
S.A.
0-E Saenz Argentina 0-E Santander - Argentina ARS 9,622 - 9,622 At maturity 46
Briones & Argentina
Cia.
S.A.I.C.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 14,806 - 14,806 Quarterly 5
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 62,115 - 62,115 Quarterly 5
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 600 - 600 Semiannual 5
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 4,453 245,937 250,390 Semiannual 5
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 8,907 491,874 500,781 Semiannual 5
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 5,550 516,467 522,017 Semiannual 5
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 4,638 516,467 521,105 Semiannual 5
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
Total 31,343,202 103,393,914 134,737,116
est
e
.39
.65
.20
.34
.70
.16
.70
.60
.60
.60
.95
.45
.66
.00
.00
.00
.00
.50
.30
.30
.30
.30
(*)
The amount basedon the undiscounted contractual flows is found in
Note 5 - Risk administration
.
Debtor Company Debtor Registration ID No. Creditor Currency Maturity (*)
Tax ID country Instrument country
0 to 3 months 3 months to 1 year Total Type of amortization Interest Rate
ThCh$ ThCh$ ThCh$ (%)
Bond
payable
90,413,000-1 Compania Chile Bond H 573 Chile UF 3,773,458 3,174,589 6,948,047 Sem
Cervecerias 03/23/2009
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond J 898 Chile UF 1,180,641 3,684 1,184,325 Sem
Cervecerias 06/28/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond L 897 Chile UF 50,640 13,420,052 13,470,692 Sem
Cervecerias 06/28/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond M 898 Chile UF 62,890 278,815 341,705 Sem
Cervecerias 06/28/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond 144A/Regulation United USD 6,882,197 - 6,882,197 Sem
Cervecerias Internacional S States
Unidas S.A.
90,413,000-1 Compania Chile Bond P 897 Chile UF 705,938 - 705,938 Sem
Cervecerias 06/28/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond R 1115 Chile UF 1,059,348 - 1,059,348 Sem
Cervecerias 08/20/2022
Unidas S.A.
91,041,000-8 Vina San Chile Bond D 986 Chile UF 59,128 219,706 278,834 Sem
Pedro 12/12/2019
Tarapaca
S.A. (2)
Total 13,774,240 17,096,846 30,871,086
iannual 4.25
iannual 2.90
iannual 1.20
iannual 1.60
iannual 3.35
iannual 3.35
iannual 2.70
iannual 1.00
(1) This obligation is hedged by a Cross Currency Swap agreement,
Note 7 - Financial instruments
.
(2) This obligation is partially hedged by a Cross Currency Swapagreement,
Note 7 - Financial instruments
.
(*)
The amount basedon the undiscounted contractual flows is found in
Note 5 - Risk administration
.
Non-current bank borrowings and bonds payable
The maturities and interest rates of these obligations are detailedas follows:
As of June 30, 2023:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency Over 1 Over 3 More than Total Type of
Tax ID country party name country year years 5 years amortizatio
Tax ID to 3 years to 5 years
ThCh$ ThCh$ ThCh$ ThCh$
Bank
borrowings
76,035,409-0 Cervecera Chile 97,004,000-5 Banco de Chile UF 14,636 15,661 26,143 56,440 Monthl
Guayacan Chile
SpA.
76,035,409-0 Cervecera Chile 97,004,000-5 Banco de Chile UF 24,066 26,910 54,623 105,599 Monthl
Guayacan Chile
SpA.
76,920,876-3 D&D SpA. Chile 97,006,000-6 Banco de Chile CLP 37,642 - - 37,642 A
Credito maturit
e
Inversiones
90,413,000-1 Compania Chile 97,030,000-7 Banco del Chile CLP - 90,000,000 - 90,000,000 A
Cervecerias Estado maturit
Unidas de Chile
S.A.
90,413,000-1 Compania Chile 97,030,000-7 Banco del Chile CLP - 30,000,000 - 30,000,000 A
Cervecerias Estado maturit
Unidas de Chile
S.A.
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP 2,000,000 - - 2,000,000 A
Kunstmann Estado maturit
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP 2,000,000 - - 2,000,000 A
Kunstmann Estado maturit
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP 1,000,000 - - 1,000,000 A
Kunstmann Estado maturit
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP - 6,716,376 - 6,716,376 A
Kunstmann Estado maturit
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP - 5,962,903 - 5,962,903 A
Kunstmann Estado maturit
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,018,000-1 Scotiabank Chile CLP 2,995,710 - - 2,995,710 A
Kunstmann Chile maturit
S.A.
96,981,310-6 Cerveceria Chile 97,018,000-1 Scotiabank Chile CLP 2,475,958 - - 2,475,958 Semiannua
Kunstmann Chile
S.A.
99,586,280-8 Compania Chile 97,030,000-7 Banco del Chile CLP - 16,000,000 - 16,000,000 A
Pisquera Estado maturit
de Chile de Chile
S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 864,218 987,678 2,098,814 3,950,710 Quarterl
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 1,791,408 2,047,324 4,094,649 7,933,381 Quarterl
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 877,936 877,936 219,483 1,975,355 Semiannua
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 296,303 592,606 296,304 1,185,213 Semiannua
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
Total 14,377,877 153,227,394 6,790,016 174,395,287
Interest
n Rate
(%)
y 3.39
y 5.65
t 6.96
y
t 7.17
y
t 8.34
y
t 8.70
y
t 8.58
y
t 8.04
y
t 8.60
y
t 8.00
y
t 3.95
y
l 3.45
t 8.66
y
y 5.00
y 5.00
l 5.50
l 5.55
(*)
The amount basedon the undiscounted contractual flows is found in
Note 5 - Risk administration
.
F-
88
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Maturity (*)
Debtor Company Debtor Registration ID No. Creditor Currency Over 1 Over 3 More than Total T
Tax ID country Instrument country year years 5 years amo
to 3 years to 5 years
ThCh$ ThCh$ ThCh$ ThCh$
Bond
payable
90,413,000-1 Compania Chile Bond H 573 Chile UF 13,075,978 13,075,912 13,082,966 39,234,856 S
Cervecerias 23/03/2009
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond J 898 Chile UF 10,080 9,970 108,357,880 108,377,930 S
Cervecerias 28/06/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond L 897 Chile UF 54,513,872 27,253,306 - 81,767,178 S
Cervecerias 28/06/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond M 898 Chile UF 516,522 516,522 72,701,945 73,734,989 S
Cervecerias 28/06/2018
Unidas
S.A.
90,413,000-1 Compania Chile Bond 144A/Regulation United USD - - 475,257,380 475,257,380 S
Cervecerias International S States
Unidas
S.A.
90,413,000-1 Compania Chile Bond P 897 Chile UF 52,800 52,800 72,290,033 72,395,633 S
Cervecerias 28/06/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond R 1115 Chile UF - - 143,628,465 143,628,465 S
Cervecerias 20/08/2022
Unidas
S.A.
91,041,000-8 Vina San Chile Bond D 986 Chile UF 230,860 54,134,220 - 54,365,080 S
Pedro 12/12/2019
Tarapaca
S.A. (2)
Total 68,400,112 95,042,730 885,318,669 1,048,761,511
ype of Interest
rtization Rate
(%)
emiannual 4.25
emiannual 2.90
emiannual 1.20
emiannual 1.60
emiannual 3.35
emiannual 3.35
emiannual 2.70
emiannual 1.00
(1) This obligation is hedged by a Cross Currency Swap agreement,
Note 7 - Financial instruments
.
(2) This obligation is partially hedged by a Cross Currency Swapagreement,
Note 7 - Financial instruments
.
(*)
The amount basedon the undiscounted contractual flows is found in
Note 5 - Risk administration
.
As of December 31, 2022:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency Over 1 Over 3 More than Total Type of I
Tax ID country party name country year years 5 years amortization
Tax ID to 3 years to 5 years
ThCh$ ThCh$ ThCh$ ThCh$
Bank
borrowings
76,035,409-0 Cervecera Chile 97,004,000-5 Banco de Chile UF 14,141 15,132 26,883 56,156 Monthly
Guayacan Chile
SpA.
76,035,409-0 Cervecera Chile 97,004,000-5 Banco de Chile UF 23,137 25,868 55,717 104,722 Monthly
Guayacan Chile
SpA.
90,413,000-1 Compania Chile 97,030,000-7 Banco del Chile CLP - 40,000,000 - 40,000,000 At
Cervecerias Estado maturity
Unidas de Chile
S.A.
96,981,310-6 Cerveceria Chile 97,004,000-5 Banco del Chile CLP 2,000,000 - - 2,000,000 At
Kunstmann Estado maturity
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,030,000-7 Banco del Chile CLP - 6,710,993 - 6,710,993 At
Kunstmann Estado maturity
S.A. de Chile
96,981,310-6 Cerveceria Chile 97,018,000-1 Scotiabank Chile CLP 2,998,735 - - 2,998,735 At
Kunstmann Chile maturity
S.A.
96,981,310-6 Cerveceria Chile 97,018,000-1 Scotiabank Chile CLP 3,299,391 - - 3,299,391 Semiannual
Kunstmann Chile
S.A.
99,586,280-8 Compania Chile 97,030,000-7 Banco del Chile CLP - 16,000,000 - 16,000,000 At
Pisquera Estado maturity
de Chile de Chile
S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 659,034 1,054,454 2,504,328 4,217,816 Quarterly
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 1,365,925 2,185,478 4,918,354 8,469,757 Quarterly
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
0-E Bebidas Bolivia 0-E Banco Bolivia BOB 368,400 491,200 122,800 982,400 Semiannual
Bolivianas Mercantil
BBO S.A. Santa
Cruz S.A.
Total 10,728,763 66,483,125 7,628,082 84,839,970
nterest
Rate
(%)
3.39
5.65
8.34
8.70
8.60
3.95
3.45
8.66
5.00
5.00
5.50
(*) The amount based on the undiscounted contractual flows is foundin
Note 5 - Risk administration.
Maturity (*)
Debtor Company Debtor Registration ID No. Creditor Currency Over 1 Over 3 More than Total
Tax ID country Instrument country year years 5 years am
to 3 years to 5 years
ThCh$ ThCh$ ThCh$ ThCh$
Bond
payable
90,413,000-1 Compania Chile Bond H 573 Chile UF 12,721,446 12,721,446 15,908,546 41,351,438
Cervecerias 03/23/2009
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond J 898 Chile UF 9,822 9,822 105,422,549 105,442,193
Cervecerias 06/28/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond L 897 Chile UF 53,071,586 39,800,351 - 92,871,937
Cervecerias 06/28/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond M 898 Chile UF 503,118 503,118 70,857,871 71,864,107
Cervecerias 06/28/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond 144A/Regulation United USD - - 506,983,975 506,983,975
Cervecerias Internacional S States
Unidas
S.A.
90,413,000-1 Compania Chile Bond P 897 Chile UF - - 70,444,041 70,444,041
Cervecerias 06/28/2018
Unidas
S.A. (1)
90,413,000-1 Compania Chile Bond R 1115 Chile UF - - 139,714,703 139,714,703
Cervecerias 08/20/2022
Unidas
S.A.
91,041,000-8 Vina San Chile Bond D 986 Chile UF 344,064 52,666,470 - 53,010,534
Pedro 12/12/2019
Tarapaca
S.A. (2)
Total 66,650,036 105,701,207 909,331,685 1,081,682,928
Type of Interest
ortization Rate
(%)
Semiannual 4.25
Semiannual 2.90
Semiannual 1.20
Semiannual 1.60
Semiannual 3.35
Semiannual 3.35
Semiannual 2.70
Semiannual 1.00
(1) This obligation is hedged by a Cross Currency Swap agreement,
Note 7 - Financial instruments
.
(2) This obligation is partially hedged by a Cross Currency Swapagreement,
Note 7 - Financial instruments
.
(*)
The amount basedon the undiscounted contractual flows is found in
Note 5 - Risk administration
.
Details of the fair value of bank borrowings, financial leases obligationsand
bonds payable are described in
Note 7 - Financial instruments
.
The effective interest rates of bond obligations are as follows:
Bonds Serie H 4.27%
Bonds Serie J 2.89%
Bonds Serie L 1.21%
Bonds Serie M 0.87%
Bonds International 3.30%
Bonds Serie D 0.53%
Bonds Serie P 3.36%
Bonds Serie R 2.81%
F-
89
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The terms and conditions of the main interest accruing obligationsas of June
30, 2023, are detailed as follows:
A) Bank Borrowings
Banco del Estado de Chile - Bank Loans
a) On July 27, 2012, the subsidiary Compania Pisquera Chile S.A. (CPCh) signed a bank loanwith the
Banco del Estado de Chile for a total of ThCh$ 16,000,000, with maturity on July 27, 2017.
This loan accrues interest at an annualfixed rate of 6.86% and an effective
rate of 7.17% per annum. The subsidiary amortized interest semi-annually, and
the capital amortizationconsists of a single payment at the end of the
established term.
On July 27, 2017 this loan was renewedfor 5 years, with maturity on July 27,
2022.
This loan accrues interest at an annualfixed rate of 4.68%. The Subsidiary
pays interest semi-annually and the capital amortization consists of a single
payment at the end ofthe established term.
On July 27, 2022 this loan was renewedfor 5 years, with maturity on July 27,
2027.
This loan bears interest at a annualfixed rate of 8.664%. The company pays
interests semiannually and the principal amortization consists of a single
payment at the end ofthe established term.
This obligation is subject to certain reporting obligationsin addition to
complying with the following financial ratios, which will be measured on the
half-yearly financial statements of CPCh:
- Maintain a Financial Expense Coverage not less than 3, calculated as the
relationship between Gross Marginless Marketing costs, Distribution and
Administration expenses, plus Other income by function, less Other expenses
by function, plus Depreciationand Amortization, divided by Financial costs.
- Maintain a debt ratio of no more than 3, measured as Total liabilities divided by Equity.
- Maintain an Equity higher than UF 770,000.
In addition, this loan obliges CPChto comply with certain restrictions of
affirmative nature, including maintaining insurance, maintaining the ownership
of essential assets,and also to comply with certain restrictions, such as not
to pledge, mortgage or grant any kind of encumbrance or real right over
anyfixed asset with an individual accounting value higher than UF 10,000,
except under the terms established by the agreement, among other.
On the other hand, the Company, throughan agreement dated July 28, 2017,
forces to maintain a direct or indirect shareholding of at least 50.1%, which
allows it to control itssubsidiary Compania Pisquera de Chile S.A. during the
term of this loan.
As of June 30, 2023, the subsidiary and CCU were in compliancewith the
financial covenants.
b) On April 16, 2021, the subsidiary Cerveceria Kunstmann S.A. signed a bank loan with Banco del
Estadode Chile for a total of ThCh$ 1,000,000, at a fixed interest rate maturing on April 17, 2023.
On April 17, 2023, this loan was renewed for a 3-yearterm, maturing on April
17, 2026.
The subsidiary amortizes interestsemi-annually and principal in a single
payment at the end of the established term.
c) On April 21, 2021, the subsidiary Cerveceria Kunstmann S.A. signed a bank loan with Banco del
Estadode Chile for a total of ThCh$ 2,000,000, at a fixed interest rate maturing on April 21, 2023.
On April 21, 2023, this loan was renewed for a 3-yearterm, maturing on April
21, 2026.
The subsidiary amortizes interestsemi-annually and principal in a single
payment at the end of the established term.
F-
90
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
d) On July 19, 2022, the subsidiary Cerveceria Kunstmann S.A. subscribed a bank loan with Banco delEstado
de Chile for a total of ThCh$ 2,000,000, at a fixed interest rate, maturing on July 18, 2025.
The subsidiary amortizes interest semiannuallyand the principal in a single
payment at the end of the established term.
e) On August 11, 2022, the subsidiary Cerveceria Kunstmann S.A. subscribed a bank loan with Bancodel
Estado de Chile for a total of ThCh$ 6,750,000, at a fixed interest rate, maturing on August 11, 2027.
The subsidiary amortizes interest semiannuallyand the principal in a single
payment at the end of the established term.
f) On May 12, 2023, the subsidiary Cerveceria Kunstmann S.A. subscribed a bank loan with Banco delEstado
de Chile for a total of ThCh$ 6,000,000, at a fixed interest rate, maturing on May 12, 2028.
The subsidiary amortizes interest semiannuallyand the principal in a single
payment at the end of the established term.
g) On April 13, 2017, Compania Cervecerias Unidas S.A. signed a bank loan with Bancodel Estado de Chile for a total of ThCh$
40,000,000 (current balance of ThCh$ 30,000,000 as of June 30, 2023), at a fixed interest rate,maturing on April 13, 2022.
On April 13, 2022, this loan was renewed for a 5-yearterm, maturing on April
13, 2027.
The Company amortizes interest semi-annually, and thecapital amortization
consists in a single payment at the end of the established term.
On March 31, 2023, ThCh$ 10,000,000 of principal duewas paid in advance.
This obligation is subject to certain reporting obligationsin addition to
complying with the following financial ratios:
a. Maintain at the end of each quarter a level of Consolidated Net Financial Debt reflected
in each of itsquarterly Consolidated Financial Statements not greater than 1,5 times
defined as the ratio between Net Financial Debt and Total AdjustedEquity, hereinafter
"Consolidated Net Financial Debt Level". To determine the Consolidated Net Financial
Debt Level, it willbe based on the quarterly Consolidated Financial Statements and the
following will be considered: /i/ "Net Financial Debt",the difference between /x/ the
unpaid amount of the "Financial Debt", which is the sum of the lines, current and
non-current,Bank loans, Bonds and Obligations for financial leases, contained in the Note
Other financial liabilities and will not be considered forthe calculation and determination
of Financial Debt Net, the total amount of the liability for the obligation for
rights to use assetsof the account or subaccount of "IFRS 16", current and non-current,
and /y/ the balance of the Cash and Cash Equivalents itemcontained in the Statement
Consolidated Financial Position of the Issuer, and /ii/ "Total Adjusted Equity" the
sum of /x/Total Equity e /y/ the sum of the accounts Provisional Dividends, Dividends
provisioned according to policy, as well as all other accountsrelated to provision of
dividends contained in the Statement Consolidated of Changes in the Issuer's Equity.
b. The Issuer must maintain a consolidated
financial expense coverage of not less
than 3 times, defined asthe ratio between
ORBDA and Financial Costs. ORBDA
1
isthe sum of the accounts Gross Margin and Other Income by Function, less the
accounts Distribution Costs, Administrative Expenses and OtherExpenses by
Function and plus the line Depreciation and Amortization recorded in the Note
Costs and Expenses by Nature. For FinancialCosts, the account of the same name
contained in the Consolidated Statement of Income by Function. The Consolidated
Financial ExpenseCoverage will be calculated for the twelve consecutive
months prior to the date of the corresponding Consolidated Financial
Statements,including the month of closing of such Consolidated Financial Statements.
c. The Issuer shall maintain an Adjusted Shareholders' Equity at the
consolidated level of at least ThCh$312,516,750. For these purposes, Adjusted
Shareholders' Equity corresponds to the sum of /i/ the account Equity
attributable to ownersof the controlling company contained in the
Consolidated Statement of Financial Position, and /ii/ the sum of the
accounts Interim Dividends,Dividends provided according to policy, as
well as all other accounts related to provision for dividends, contained
in the ConsolidatedStatement of Changes in Shareholders' Equity.
d. The Issuer shall maintain unencumbered assets for an amount equal to at least 1.2 times the outstandingamount
of unsecured financial debt, For these purposes, assets and debts shall be valued at book value. The term
-------------------------------------------------------------------------------
1
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
91
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
"unencumbered assets" means: /a/ the differencebetween /i/ the Total Assets
account in the Consolidated Statement of Financial Position, and /ii/ the
assets pledged as collateral indicatedin the Note on Contingencies and
Commitments of the Consolidated Financial Statements; and /b/ Financial Debt,
the definition given tothis term is found in the Indenture.
e. The Issuer shall maintain, either directly or indirectly, ownership over more than 50% of the subscribedand paid-up shares
and over the voting rights of the following companies: Cervecera CCU Chile Ltda. and Embotelladoras Chilenas UnidasS.A.
f. The Issuer shall not sell, nor allow them to be sold, nor assign ownership and not to
transfer and/orin any way dispose of, either through one transaction or a series of
transactions, directly or indirectly, assets of its property andthose of its subsidiaries
necessary, to maintain in Chile, directly and/or through one or more subsidiaries,
a nominal installed capacityfor the production, indistinctly, of Beer and/or Alcoholic
Beverages and/or Nectars and/or Mineral and/or Bottled Waters, hereinafterthe "Essential
Businesses", equal to or not less, either with respect to one or more of the
aforementioned categories or allof them together, than 15.9 million hectoliters per year.
g. The Issuer shall maintain, directly or through a subsidiary, ownership of the trademark "CRISTAL",word or word, for
beer, in class 32 of the International Classifier of Products and Services for the registration of trademarks.
h. The Issuer shall not make investments in instruments issued by "related
parties" other thanits subsidiaries, nor to carry out with them
other transactions outside its normal line of business, under conditions
other than thoseestablished in Title XVI of the Corporations Law.
As of June 30, 2023, the Company was in compliance with the financialcovenants.
h) On October 13, 2021, Compania Cervecerias Unidas S.A. signed a bank loan with ScotiabankChile
for a total of ThCh$ 90,000,000, at a fixed interest rate, maturing on April 6, 2023.
On April 6, 2023, the loan was renewed with Banco delEstado de Chile for a
term of 5 years, maturing on April 6, 2028.
Banco de Chile - Bank Loans
a) On July 5, 2021, the subsidiary Cervecera GuayacanSpA. subscribed a bank loan with Banco de Chilefor a total of
UF 2,110 (equivalent to ThCh$ 63,395 as of June 30, 2023), at a fixed interest rate, maturing on June 5, 2031.
The subsidiary amortizes interest and principal on amonthly basis, with a
first payment on August 5, 2021.
b) On December 17, 2021, the subsidiary Cervecera GuayacanSpA. subscribed a bank loan with Banco deChile for a total of UF 3,663
(equivalent outstanding balance is ThCh$ 116,563 as of June 30, 2023), at a fixed interest rate, maturingon November 17, 2031.
The subsidiary amortizes interest and principal on a monthlybasis.
Scotiabank Chile - Bank Loans
a) On December 9, 2019, the subsidiary Cerveceria Kunstmann S.A. signed
a bank loan with ScotiabankChile for a total of ThCh$ 10,000,000
(equivalent outstanding balance is ThCh$ 4,134,313 as of June 30,
2023), at a fixed interest rate,maturing on December 9, 2025.
The subsidiary amortizes interest and capital semi-annuallywith a first
payment on June 9, 2020.
The bank loan mentioned above requires complying certaininformational
requirements and also compliance with certain financial ratios that are
described below:
i. A Coverage of Financial Expenses higherthan or equal to three times. For
these purposes, Financial Expenses Coverage is defined as ORBDA
2
divided by the item "Financial Expenses" of the Consolidated Financial
Statements
-------------------------------------------------------------------------------
2
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
92
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
of the Debtor measured over the last 12 months, ORBDA isdefined as the
Operating Income plus Depreciation for the Year and plus amortization of
Intangible Assets.
ii. A ratio of Net Financial Debt to ORBDAless than or equal to three times.
For these purposes the Net Financial Debt is the difference between /i/ the
sum of the item "OthersFinancial Liabilities, Current and Non-Current"; and
/ii/ the sum of the item "Cash and Cash Equivalent" in the ConsolidatedFinancial
Statements of the Debtor.
Additionally, this loan forces the subsidiary to complywith certain negative
restrictions, such as not granting real guarantees. These are pledges and
mortgages to guarantee its own or third-partyobligations without prior
authorization and by writing of the Bank for an amount equal to or greater
than ten percent of the total fixedassets of the Debtor.
As of June 30, 2023, the subsidiary was in compliancewith the financial
covenants.
b) On March 17, 2020, the subsidiary Cerveceria Kunstmann S.A. signed a bank loan with ScotiabankChile
for a total of ThCh$ 3,000,000 at a fixed interest rate and maturity on March 16, 2025.
The subsidiary amortizes interest semi-annually and capitalamortization
consists of a single payment at the end of the established term.
The bank loan mentioned above is required to comply certaininformational
requirements and also compliance with certain financial ratios that are
described below:
i. A Coverage of Financial Expenses higherthan or equal to three times. For
these purposes, Financial Expenses Coverage is defined as ORBDA divided by the
item "FinancialExpenses" of the Consolidated Financial Statements of the
Debtor measured over the last 12 months, ORBDA
3
is defined as the Operating Income plus Depreciation for the Year and plus
amortization of Intangible Assets.
ii.A ratio of Net Financial Debt to ORBDAless than or equal to three times,
For these purposes, the Net Financial Debt is the difference between /i/ the
sum of the item "OthersFinancial Liabilities, Current and Non-Current"; and
/ii/ the sum of the item "Cash and Cash Equivalent" in the ConsolidatedFinancial
Statements of the Debtor.
Additionally, this loan forces the subsidiary to complywith certain negative
restrictions, such as not granting real guarantees. These are pledges and
mortgages to guarantee its own or third-partyobligations without prior
authorization and by writing the Bank for an amount equal to or greater than
ten percent of the total fixedassets of the Debtor.
As of June 30, 2023, the subsidiary was in compliancewith the financial
covenants.
c) On February 18, 2020, the subsidiary Bebidas CCU-PepsiCo SpA. signed a bank
loan with Scotiabank Chilefor a total of ThCh$ 2,000,000 at a fixed interest
rate and maturity on February 18, 2023. The Company recognized the 50% of
this loan in accordancewith its participation on this joint operation.
The subsidiary amortizes interest semi-annually and capitalamortization
consists of a single payment at the end of the established term.
On February 18, 2023, the loan was fully paid.
Banco Itau Corpbanca - Bank Loans
On April 23, 2019, the subsidiary Vina San PedroTarapaca S.A. signed a bank
loan with Banco Itau Corpbanca for a total of USD 14,000,000, at a fixed
interest rate, maturingon April 22, 2022.
The subsidiary amortizes interest semi-annually and capitalamortization
consists in a single payment at the end of the established term.
On April 22, 2022, this loan was repaid fora total equivalent of ThCh$
11,657,130.
-------------------------------------------------------------------------------
3
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
93
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Banco Creditoe Inversiones - Bank loans
a) On May 18, 2020, D&D SpA. entered into a bank loan with Banco de Credito e Inversiones fora total of ThCh$ 69,000
(equivalent outstanding balance is ThCh$ 17,482 as of June 30, 2023) at a fixed interest rate, maturing on April24, 2024.
The Company amortizes interest and principal on a monthlybasis.
b) On July 23, 2021, D&D SpA. entered into a bank loan with Banco de Credito e Inversiones fora total of ThCh$ 100,000
(equivalent outstanding balance is ThCh$ 57,178 as of June 30, 2023) at a fixed interest rate, maturing on June16, 2025.
The Company amortizes interest and principal on a monthlybasis.
Banco MercantilSanta Cruz S.A. - Bank loans
a) On June 26, 2017, the subsidiary BBO S.A. signed a bank loan
with Banco Mercantil Santa Cruz S.A. fora total of 68,877,500
bolivians (current balance equivalent to ThCh$ 7,933,381 as of June
30, 2023), at a fixed interest rate, maturingon April 4, 2032.
The BBO subsidiary amortizes interest on a quarterlybasis, and the capital
amortization will begin to be settled from November 12, 2024 on a quarterly
basis.
b) On May 31, 2019, the subsidiary BBO S.A. signed a bank loan with
Banco Mercantil Santa Cruz S.A. for atotal of 34,300,000 bolivians
(current balance equivalent to ThCh$ 3,950,381 as of June 30,
2023), at a fixed interest rate, maturingon April 7, 2029.
The BBO subsidiary amortizes interest on a quarterlybasis and the capital
amortization will begin to be settled from October 31, 2024 on a quarterly
basis.
c) On June 30, 2022, the subsidiary BBO S.A. signed a bank loan with
Banco Mercantil Santa Cruz S.A. fora total of 17,150,000 bolivians
(current balance equivalent to ThCh$ 1,975,355 as of June 30,
2023), at a fixed interest rate and maturingon June 25, 2028.
This loan accrues interest at a fixed interest rate.The BBO subsidiary will
amortize interest on a semi-annual basis, and the capital amortization will
begin to be settled on June 25, 2024on a semi-annual basis.
d) On May 29, 2023, the subsidiary BBO S.A. signed a bank loan with
Banco Mercantil Santa Cruz S.A. for atotal of 10,290,000 bolivians
(current balance equivalent to ThCh$ 1,185,213 as of June 30,
2023), at a fixed interest rate and maturingon May 10, 2029.
This loan accrues interest at a fixed interest rate.The BBO subsidiary will
amortize interest on a semi-annual basis, and the capital amortization will
begin to be settled on November 10,2025 on a semi-annual basis.
B) Bonds
Series H Bonds - CCU S.A.
On March 23, 2009, under number 573, the Company recorded in theSecurities
Record the issue of bonds Series H for UF 2 million (the balance outstanding
is ThCh$ 45,932,065 as of June 30, 2023), with 21 years terms. Emission was
placed in the localmarket on April 2, 2009. The issuance of the Bond H was UF
2 million with maturity on March 15, 2030, with a discount amounting to
ThCh$156,952, and accrues interest at an annual fixed rate of 4.25%, with
amortizes interest and capital annually.
By deed dated December 27, 2010 issued in the Notary of RicardoSan Martin
Urrejola, under repertoires No. 36446-2010, were amended Issue Contract Series
H, in order to update certain referencesand to adapt to the new IFRS
accounting rules.
The current issue was subscribed with Banco Santander Chile as representativeof
the bond holders and as paying bank, and it requires that the Company complies
with the following financial covenants on its InterimConsolidated Financial
Statements and other specific requirements:
F-
94
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
a. Maintain at the end of each quarter an indebtedness ratio measured over the consolidated
financial statementsnot higher than 1.5, defined as the ratio of Total Adjusted Liabilities and
Total Adjusted Equity. The Total Adjusted Liabilities aredefined as Total Liabilities less
Dividends provisioned, according to policy included in the Statement of Changes in Equity, plus
theamount of all guarantees, debts or obligations of third parties not within the liability
and outside the Issuer or its subsidiaries thatare cautioned by real guarantees granted by
the Issuer or its subsidiaries. Total Adjusted Equity is defined as Total Equity plus
Dividendsprovisioned account, according to policy included in the Statement of Changes in Equity.
b. Maintain a Financial
Expense Coverage measured
at the end of each quarter and retroactively
for periodsof 12 months, not less than 3,
calculated as the ratio of Adjusted ORBDA
4
and Financial Costs account. Adjusted ORBDA means ORBDA as calculated
by the Company in accordance with particular debt instruments
inorder to measure such instruments' financial covenants and
is defined as: (i) the sum of Gross Margin and Other income
by functionaccounts; (ii) less (absolute numbers) Distribution
costs, Administrative expenses and Other expenses by function
accounts; and (iii)plus (absolute numbers) Depreciation and
Amortization recorded on the Note Nature of the cost and expenses.
c. Maintain at the end of each quarter, assets free of liens for an amount equal
to, at least, 1.2, definedas the ratio of Total Assets free of lien and
Financial Debt free of lien. Total Assets free of lien are defined as Total
Assets lessassets pledged as collateral for cautioned obligations of
third parties, Financial Debt free of lien is defined as the sum of lines
BankLoans, Bonds payable and Finance lease obligations contained in Note
Other financial liabilities of the Consolidated Financial Statements.These
latter obligations are currently presented in a specific item and note.
d. Maintain at the end of each quarter a minimum equity of ThCh$ 312,516,750, meaning Equity
Attributableto Equity Holders of the Parent plus the Dividends provisioned account, according to policy
included in the Statement of Changes in Equity.This requirement will increase in the amount
resulting from each revaluation of property, plant and equipment to be performed by the Issuer.
e. To maintain, either directly or indirectly, ownership over more than 50% of the subscribed and paid-upshares and over
the voting rights of the following companies: Cervecera CCU Chile Limitada and Embotelladoras Chilenas Unidas S.A.
f. Maintain a nominal installed capacity for the production manufacturing of beer and soft drinks, equalor higher
altogether than 15.9 million hectoliters a year, except in the cases and under the terms of the contract.
g. To maintain, either directly or through a subsidiary, ownership of the trademark "CRISTAL",denominative for
beer class 32 of the international classifier, and not to transfer its use, except to its subsidiaries.
h. Not to make investments in facilities issued by related parties,
except in the cases and under the termsestablished in the agreement.
The inflation risk associated to the interest rate to which BondH is exposed
is mitigated through the use of Cross Currency Swap contracts, which fix the
rate. See details of the Company's hedging in
Note 7 - Financial Instruments.
As of June 30, 2023, the Company was in compliance with the financialcovenants.
Series J Bonds - CCU S.A.
On June 28, 2018, CCU S.A. registered in the Securities Register,under the
number 898, the issuance of its Series J Bond, bearer and dematerialized, for
a total of UF 3 million (the balance outstandingis ThCh$ 108,268,440 as of
June 30, 2023) with maturity on August 10, 2043. The Series J bonds will
accrue on the unpaid capital expressedin Unidades de Fomento, an annual
interest of 2.9%, compounded, due, calculated on the basis of equal semesters
of 180 days, equivalentto 1.4396% semi-annual. Interest will accrue as of
August 10, 2018, will be paid semiannually as of February 10, 2019.
The issue was subscribed with Banco BICE as the representative ofthe bond
holders and the payer bank and requires the Company to comply with the
following financial indicators with respect to its InterimConsolidated
Financial Statements and other specific requirements:
a. Maintain at the end of each quarter a level of Consolidated Net Financial Debt reflected
in each of itsquarterly Consolidated Financial Statements not greater than 1.5 times
defined as the ratio between Net Financial Debt and Total AdjustedEquity, hereinafter
"Consolidated Net Financial Debt Level". To determine the Consolidated Net Financial Debt
-------------------------------------------------------------------------------
4
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
95
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Level, it will be based on the quarterly ConsolidatedFinancial Statements and
the following will be considered: /i/ "Net Financial Debt", the difference
between /x/ the unpaidamount of the "Financial Debt", which is the sum of the
lines, current and non-current, Bank loans, Bonds and Obligationsfor financial
leases, contained in the Note Other financial liabilities and will not be
considered for the calculation and determinationof Financial Debt Net, the
total amount of the liability for the obligation for rights to use assets of
the account or subaccount of "IFRS16", current and non-current, and /y/ the
balance of the Cash and Cash Equivalents item contained in the Statement
Consolidated FinancialPosition of the Issuer, and /ii/ "Total Adjusted Equity"
the sum of /x/ Total Equity e /y/ the sum of the accounts ProvisionalDividends,
Dividends provisioned according to policy, as well as all other accounts
related to provision of dividends contained in theStatement Consolidated of
Changes in the Issuer's Equity.
b. The Issuer must maintain a consolidated
financial expense coverage
of not less than three times,
definedas the ratio between ORBDA
5
and Financial Expenses. ORBDAis the sum of the accounts Gross margin and Other income
per function, minus the accounts Distribution expenses, Administrative expensesand
Other expenses per function and plus the Depreciation and Amortization line recorded
in the Note Costs and Expenses by Nature. FinancialExpenses refers to the account of
the same name referred to in the Consolidated Statement of Income by Function. The
Consolidated FinancialExpenses Coverage Ratio will be calculated for the period of
twelve consecutive months prior to the date of the corresponding ConsolidatedFinancial
Statements, including the closing month of said Consolidated Financial Statements.
c. Maintain an Adjusted Equity at a consolidated level for an amount
of at least equal to ThCh$ 312,516,750.For these purposes, Adjusted
Equity corresponds to the sum of / i / the Equity account attributable
to the owners of the controlling entityin the Consolidated
Statement of Financial Position, and / ii / the sum of the accounts
Interim Dividends, Dividends provisioned accordingto policy,
as well as all other accounts relating to the provision of dividends,
contained in the Consolidated Statement of Changes inEquity.
d. Maintain Lien-Free Assets for an amount equal to at least 1.2 times the
unpaid amount of the FinancialDebt without collateral. For these purposes,
the assets and debts will be valued at book value. The following shall
be understood: / a/ Assets Free of Liens is the difference between
/ i / the Total Assets account in the Consolidated Statement of Financial
Position, and/ ii / the assets given as guarantees indicated in the
Note on Contingencies and Commitments of the Consolidated Financial
Statements;and / b / Financial Debt is defined in the Issuance Contract.
e. Maintain, directly or indirectly, the ownership of more than fifty percent of the social rights and ofthe subscribed
and paid shares, respectively, of: / a / Cervecera CCU Chile Limitada and / b / Embotelladoras Chilenas Unidas S.A.
f. Not sell, nor allow the sale of, nor assign the ownership of, nor transfer and/or in
any way alienate,either through a transaction or a series of transactions, directly or
indirectly, assets of the Company's property and/or its subsidiariesnecessary, to maintain
in Chile, directly and / or through one or more Subsidiaries, a nominal installed
capacity for the production withoutdistinction of Beers and / or non-alcoholic
Beverages and / or Nectars and / or Mineral and / or Packaged Waters, Hereinafter, the
"EssentialBusinesses" equal to and not inferior to, either with respect to one or more of
the aforementioned categories or all of them together,15.9 million hectoliters per year.
g. To maintain directly or through a subsidiary, the ownership of the trademark "CRISTAL", brandor word, for beer,
in class 32 of the International Classifier of Products and Services for the registration of trademarks.
h. Not to make investments in instruments issued by "related parties" other than the Company'sSubsidiaries, nor to carry out
other operations outside its normal line of business under conditions different from those establishedin the contract.
The inflation risk associated to the interest rate to which BondJ is exposed
is mitigated through the use of Cross Currency Swap contracts, which fix the
rate. See details of the Company's hedging in
Note 7 - Financial Instruments.
As of June 30, 2023, the Company was in compliance with the financialcovenants.
-------------------------------------------------------------------------------
5
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
96
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Series L Bonds - CCU S.A.
On June 28, 2018 under the number 897, CCU S.A. recorded in theSecurities
Registry the issuance of a 10-years Bonds line. The issuer may issue one or
more series of Bonds directed to the market general.
By public complimentary deed on June 10, 2020 the Company recordedin the
Securities Record the issue of Bonds Series L for UF 3 million (the balance
outstanding is ThCh$ 108,268,440 as of June 30, 2023),maturing on June 1,
2027. The L Series Bonds will accrue on the unpaid capital expressed in UF an
interest rate of 1.20% calculated onthe basis of equal semesters of 180 days,
equivalent to 0.5982% semiannual. The interests will be accrued from June 1,
2020 and will bepaid semiannually as from December 1, 2020. The capital will
be paid semiannually as from December 1, 2023.
The issue was subscribed with Banco BICE as representative of thebond holders
and as paying bank and it requires that the Company complies with the
following financial covenants on its Consolidated FinancialStatements and
other specific requirements:
a. Maintain at the end of each quarter a level of Consolidated Net Financial Debt reflected
in each of itsquarterly Consolidated Financial Statements not greater than 1.5 times
defined as the ratio between Net Financial Debt and Total AdjustedEquity, hereinafter
"Consolidated Net Financial Debt Level". To determine the Consolidated Net Financial
Debt Level, it willbe based on the quarterly Consolidated Financial Statements and the
following will be considered: /i/ "Net Financial Debt",the difference between /x/ the
unpaid amount of the "Financial Debt", which is the sum of the lines, current and
non-current,Bank loans, Bonds and Obligations for financial leases, contained in the Note
Other financial liabilities and will not be considered forthe calculation and determination
of Financial Debt Net, the total amount of the liability for the obligation for
rights to use assetsof the account or subaccount of "IFRS 16", current and non-current,
and /y/ the balance of the Cash and Cash Equivalents itemcontained in the Statement
Consolidated Financial Position of the Issuer, and /ii/ "Total Adjusted Equity" the
sum of /x/Total Equity e /y/ the sum of the accounts Provisional Dividends, Dividends
provisioned according to policy, as well as all other accountsrelated to provision of
dividends contained in the Statement Consolidated of Changes in the Issuer's Equity.
b. The Issuer must maintain a Consolidated
Financial Expense Coverage
of no less than three times
definedas the ratio between ORBDA
6
and Financial Expenses. ORBDAis defined as the sum of the items Gross margin and Other income per
function minus the items Distribution expenses, Administrative expenses,and Other expenses per function
registered in the Consolidated Financial Statments of Incomes of the quarterly Consolidated
FinancialStatement of the issuer, plus the Depreciation and Amortization line recorded in the Note Costs
and Expenses by Nature. Financial Expensesrefers to the account of the same name referred to in the
Consolidated Statement of Income by Function. The Consolidated Financial ExpensesCoverage Ratio will
be calculated for the period of 12 consecutive months prior to the date of the corresponding
Consolidated FinancialStatements including the closing month of said Consolidated Financial Statements.
c. The issuer must maintain an Adjusted Equity at a consolidated level
for an amount of at least equal toThCh$ 312,516,750. For these
purposes, Adjusted Equity corresponds to the sum of /i/ the Equity
account attributable to the owners ofthe controlling entity in the
Consolidated Statement of Financial Position, and /ii/ the sum of
the accounts Dividends, Dividends provisionedaccording to policy,
as well as all other accounts relating to the provision of dividends,
contained in the Consolidated Statement ofChanges in Equity.
d. The issued must maintain Lien-Free Assets for an amount equal to at least 1.2 times the unpaid
amountof the Financial Debt without collateral. For these purposes, the assets and debts will
be valued at book value. The following shall beunderstood: /a/ Assets Free of Liens is the
difference between /i/ the Total Assets account in the Consolidated Statement of FinancialPosition,
and /ii/ the assets given as guarantees indicated in the Note on Contingencies and Commitments
of the Consolidated FinancialStatements; and /b/ Fianancial Debt is the definition given
to said term in numeral Four letter a/ /i/ of the Fifteenth clause of theIssuance Contract.
It is expressly recorded and established that as of the mandatory entry of IFRS 16 on
January 1, 2019, which was issuedand approved by the International Accounting Standards Board
regarding the calculation of Financial Debt that must be made in accordancewith numerals
Four and Five of Clause Fifteen of the Issuance Contract after said date. The account or
respective subaccount refers tothe total amount of the liability for obligation for rights of use
assets or the name that the Commission defines for this purpose. Dueto the entry of the
aforementioned standard, it must be disclosed as a financial liability within the items, Other
current financial liabilitiesand Other non-current financial liabilities, which will not be
considered, incorporated or used for the calculation and determinationof said Financial Debt.
-------------------------------------------------------------------------------
6
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
97
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
e. Maintain, directly or indirectly, the ownership of more than fifty percent of the social rights and ofthe subscribed
and paid shares, respectively, of: /a/ Cervecera CCU Chile Limitada and /b/ Embotelladoras Chilenas Unidas S.A.
f. Not sell, nor allow the sale of, nor assign the ownership of, nor transfer and/or in
any way alienate,either through a transaction or a series of transactions, directly or
indirectly, assets of the Company's property and/or its subsidiariesnecessary, to
maintain in Chile, directly and/or through one or more Subsidiaries, a nominal installed
capacity for the production withoutdistinction of Beers and/or non-alcoholic
Beverages and/or Nectars and/or Mineral and/or Packaged Waters, Hereinafter, the
"EssentialBusinesses" equal to and not inferior to either with respect to one or more of
the aforementioned categories or all of them together,15.9 million hectoliters per year.
g. Maintain directly or through a Subsidiary, the ownership of the trademark "CRISTAL", brand orword, for beer,
in class 32 of the International Classifier of Products and Services for the registration of trademarks.
h. Not to make investments in instruments issued by "related parties" other
than the Company'sSubsidiaries, nor to carry out other operations
outside its normal line of business, under conditions different
from those establishedin Chapter XVI of open stocks companies law.
The inflation risk associated to the interest rate to whichBond L is exposed
is mitigated through the use of Cross Currency Swap contracts, which fix the
rate. See details of the Company's hedgingin
Note 7 - Financial Instruments.
As of June 30, 2023, the Company was in compliance with the financialcovenants.
Series M Bonds - CCU S.A.
On June 28, 2018 under the number 898, CCU S.A. recorded in theSecurities
Registry the issuance of a 30-years Bonds line. The issuer may issue one or
more series of Bonds directed to the market general.
As stated in a complementary public deed, dated June 10, 2020, theSeries M
Bond has been placed, bearer and dematerialized, for a total of UF 2 million
(the balance outstanding is ThCh$ 72,178,960 asof June 30, 2023) with maturity
on June 1, 2030. The Series M bonds will accrue interest at an annual rate of
1.60% per annum on the unpaidprincipal expressed in Unidades de Fomento,
compounded, due, calculated on the basis of equal semesters of 180 days,
equivalent to 0.7968%per semester. Interest will accrue as from June 1, 2020,
will be paid semi-annually as from December 1, 2020 and principal will be
paidat the end of the bond term.
The issue was subscribed with Banco BICE as representative of thebond holders
and as paying bank, It requires that the Company complies with the following
financial covenants on its Consolidated FinancialStatements and other specific
requirements:
a. Maintain at the end of each quarter a level of Consolidated Net Financial Debt reflected
in each of itsquarterly Consolidated Financial Statements not greater than 1.5 times
defined as the ratio between Net Financial Debt and Total AdjustedEquity, hereinafter
"Consolidated Net Financial Debt Level". To determine the Consolidated Net Financial
Debt Level, it willbe based on the quarterly Consolidated Financial Statements and the
following will be considered: /i/ "Net Financial Debt",the difference between /x/ the
unpaid amount of the "Financial Debt", which is the sum of the lines, current and
non-current,Bank loans, Bonds and Obligations for financial leases, contained in the Note
Other financial liabilities and will not be considered forthe calculation and determination
of Financial Debt Net, the total amount of the liability for the obligation for
rights to use assetsof the account or subaccount of "IFRS 16", current and non-current,
and /y/ the balance of the Cash and Cash Equivalents itemcontained in the Statement
Consolidated Financial Position of the Issuer, and /ii/ "Total Adjusted Equity" the
sum of /x/Total Equity e /y/ the sum of the accounts Provisional Dividends, Dividends
provisioned according to policy, as well as all other accountsrelated to provision of
dividends contained in the Statement Consolidated of Changes in the Issuer's Equity.
F-
98
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
b. The Issuer must maintain a Consolidated
Financial Expense Coverage
of not less than three times
definedas the ratio between ORBDA
7
and Financial Expenses. ORBDAis defined as the sum of the items Gross margin and Other income per
function minus the items Distribution expenses, Administrative expenses,and Other expenses per function
registered in the Consolidated Financial Statments of Incomes of the quarterly Consolidated
FinancialStatement of the issuer, plus the Depreciation and Amortization line recorded in the Note Costs
and Expenses by Nature. Financial Expensesrefers to the account of the same name referred to in the
Consolidated Statement of Income by Function. The Consolidated Financial ExpensesCoverage Ratio will
be calculated for the period of 12 consecutive months prior to the date of the corresponding
Consolidated FinancialStatements, including the closing month of said Consolidated Financial Statements.
c. The issuer must maintain an Adjusted Equity at a consolidated level
for an amount of at least equal to ThCh$ 312,516,750. For these
purposes, Adjusted Equity corresponds to the sum of /i/ the Equity
account attributable to the owners of the controlling entity in the
Consolidated Statement of Financial Position, and /ii/ the sum of
the accounts Dividends, Dividends provisioned according to policy,
as well as all other accounts relating to the provision of dividends,
contained in the Consolidated Statement of Changes in Equity.
d. The issued must maintain Lien-Free Assets for an amount equal to at least 1.2 times the unpaid
amountof the Financial Debt without collateral. For these purposes, the assets and debts will
be valued at book value. The following shall beunderstood: /a/ Assets Free of Liens is the
difference between /i/ the Total Assets account in the Consolidated Statement of FinancialPosition,
and /ii/ the assets given as guarantees indicated in the Note on Contingencies and Commitments
of the Consolidated FinancialStatements, and /b/ Fianancial Debt is the definition given
to said term in numeral Four letter a/ /i/ of the Fifteenth clause of theIssuance Contract.
It is expressly recorded and established that as of the mandatory entry of IFRS 16 on
January 1, 2019, it was issuedand approved by the International Accounting Standards Board,
Regarding the calculation of Financial Debt that must be made in accordancewith numerals Four
and Five of Clause Fifteen of the Issuance Contract after said date, the account or respective
subaccount referredto the total amount of the liability for obligation for rights of use
assets or the name that the Commission defines for this purpose.Due to the mandatory entry of
the aforementioned, the standard must be disclosed as a financial liability within the items
Other currentfinancial liabilities and Other non-current financial liabilities, will not be
considered, incorporated or used for the calculation anddetermination of said Financial Debt.
e. Maintain directly or indirectly, the ownership of more than fifty percent of the social rights and ofthe subscribed
and paid shares, respectively of: /a/ Cervecera CCU Chile Limitada and /b/ Embotelladoras Chilenas Unidas S.A.
f. Not sell, nor allow the sale of, nor assign the ownership of, nor transfer and/or in
any way alienate,either through a transaction or a series of transactions, directly or
indirectly, assets of the Company's property and/or its subsidiariesnecessary, to
maintain in Chile, directly and/or through one or more Subsidiaries, a nominal installed
capacity for the production, withoutdistinction of Beers and/or non-alcoholic
Beverages and/or Nectars and/or Mineral and/or Packaged Waters, Hereinafter, the
"EssentialBusinesses" equal to and not inferior to, either with respect to one or more of
the aforementioned categories or all of them together,15.9 million hectoliters per year.
g. Maintain directly or through a Subsidiary, the ownership of the trademark "CRISTAL", brand orword, for beer,
in class 32 of the International Classifier of Products and Services for the registration of trademarks.
h. Not to make investments in instruments issued by "related parties" other
than the Company'sSubsidiaries, nor to carry out other operations
outside its normal line of business under conditions different
from those establishedin Chapter XVI of open stocks companies law.
The inflationary risk associated to the interest rate in which thisBond M is
exposed is mitigated by the use of Cross Currency Swap contracts, which leaves
the rate fixed until June 1, 2023, the date onwhich it was liquidated. See
details of the Company's hedging in
Note 7 - Financial instruments
.
As of June 30, 2023, the Company was in compliance with the financialcovenants.
-------------------------------------------------------------------------------
7
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
99
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Series P Bonds - CCU S.A.
On March 15, 2022 under the number 897, CCU S.A. recorded in theSecurities
Registry the issuance of a 10-years Bonds line. The issuer may issue one or
more series of Bonds directed to the market general.
As stated in a complementary public deed, dated March 30, 2022,the Series P
Bond has been placed, bearer and dematerialized, for a total of UF 2 million
(the balance outstanding is ThCh$ 72,178,960as of June 30, 2023) with maturity
on March 15, 2032. The Series P bonds will accrue interest at an annual rate
of 3.35% per annum onthe unpaid principal expressed in Unidades de Fomento,
compounded, due, calculated on the basis of equal semesters of 180 days,
equivalentto 1.6% per semester, Interest will accrue as from March 15, 2022,
will be paid semi-annually as from September 15, 2022 and principalwill be
paid at the end of the bond term.
The issue was subscribed with Banco BICE as representative of thebond holders
and as paying bank. It requires that the Company complies with the following
financial covenants on its Consolidated FinancialStatements and other specific
requirements:
a. Maintain at the end of each quarter a level of Consolidated Net Financial Debt reflected
in each of itsquarterly Consolidated Financial Statements not greater than 1.5 times
defined as the ratio between Net Financial Debt and Total AdjustedEquity, hereinafter
"Consolidated Net Financial Debt Level". To determine the Consolidated Net Financial
Debt Level, it willbe based on the quarterly Consolidated Financial Statements and the
following will be considered: /i/ "Net Financial Debt",the difference between /x/ the
unpaid amount of the "Financial Debt", which is the sum of the lines, current and
non-current,Bank loans, Bonds and Obligations for financial leases, contained in the Note
Other financial liabilities and will not be considered forthe calculation and determination
of Financial Debt Net, the total amount of the liability for the obligation for
rights to use assetsof the account or subaccount of "IFRS 16", current and non-current,
and /y/ the balance of the Cash and Cash Equivalents itemcontained in the Statement
Consolidated Financial Position of the Issuer, and /ii/ "Total Adjusted Equity" the
sum of /x/Total Equity e /y/ the sum of the accounts Provisional Dividends, Dividends
provisioned according to policy, as well as all other accountsrelated to provision of
dividends contained in the Statement Consolidated of Changes in the Issuer's Equity.
b. The Issuer must maintain a Consolidated
Financial Expense Coverage
of not less than three times
definedas the ratio between ORBDA
8
and Financial Expenses. ORBDAis defined as the sum of the items Gross margin and Other income per
function minus the items Distribution expenses, Administrative expenses,and Other expenses per function
registered in the Consolidated Financial Statments of Incomes of the quarterly Consolidated
FinancialStatement of the issuer, plus the Depreciation and Amortization line recorded in the Note Costs
and Expenses by Nature. Financial Expensesrefers to the account of the same name referred to in the
Consolidated Statement of Income by Function. The Consolidated Financial ExpensesCoverage Ratio will
be calculated for the period of 12 consecutive months prior to the date of the corresponding
Consolidated FinancialStatements, including the closing month of said Consolidated Financial Statements.
c. The issuer must maintain an Adjusted Equity at a consolidated level
for an amount of at least equal to ThCh$ 312,516,750. For these
purposes, Adjusted Equity corresponds to the sum of /i/ the Equity
account attributable to the owners of the controlling entity in the
Consolidated Statement of Financial Position, and /ii/ the sum of
the accounts Dividends, Dividends provisioned according to policy,
as well as all other accounts relating to the provision of dividends,
contained in the Consolidated Statement of Changes in Equity.
d. The issued must maintain Lien-Free Assets for an amount equal to at least 1.2 times
the unpaid amountof the Financial Debt without collateral. For these purposes,
the assets and debts will be valued at book value. The following shall beunderstood:
/a/ Assets Free of Liens is the difference between /i/ the Total Assets account
in the Consolidated Statement of FinancialPosition, and /ii/ the assets given as
guarantees indicated in the Note on Contingencies and Commitments of the Consolidated
FinancialStatements, and /b/ Fianancial Debt is the definition given to said term
in numeral Four letter a/ /i/ of the Fifteenth clause of theIssuance Contract.
It is expressly recorded and established that as of the mandatory entry of IFRS
16 on January 1, 2019, it was issuedand approved by the International Accounting
Standards Board, Regarding the calculation of Financial Debt that must be made in
accordancewith numerals Four and Five of Clause Fifteen of the Issuance Contract
after said date, the account or respective subaccount referredto the total amount
of the liability for obligation for rights of use assets or the name that the
Commission defines for this purpose.Due to the mandatory entry of the aforementioned,
the standard must be disclosed as a financial liability within the items Other
-------------------------------------------------------------------------------
8
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
100
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
current financial liabilities and Other non-current financialliabilities, will
not be considered, incorporated or used for the calculation and determination
of said Financial Debt.
e. Maintain directly or indirectly, the ownership of more than fifty percent of the social rights and ofthe subscribed
and paid shares, respectively of: /a/ Cervecera CCU Chile Limitada and /b/ Embotelladoras Chilenas Unidas S.A.
f. Not sell, nor allow the sale of, nor assign the ownership of, nor transfer and/or in
any way alienate,either through a transaction or a series of transactions, directly or
indirectly, assets of the Company's property and/or its subsidiariesnecessary, to
maintain in Chile, directly and/or through one or more Subsidiaries, a nominal installed
capacity for the production, withoutdistinction of Beers and/or non-alcoholic
Beverages and/or Nectars and/or Mineral and/or Packaged Waters, Hereinafter, the
"EssentialBusinesses" equal to and not inferior to, either with respect to one or more of
the aforementioned categories or all of them together,15.9 million hectoliters per year.
g. Maintain directly or through a Subsidiary, the ownership of the trademark "CRISTAL", brand orword, for beer,
in class 32 of the International Classifier of Products and Services for the registration of trademarks.
h. Not to make investments in instruments issued by "related parties" other
than the Company'sSubsidiaries, nor to carry out other operations
outside its normal line of business under conditions different
from those establishedin Chapter XVI of open stocks companies law.
The inflationary risk associated to the interest rate in which thisBond P is
exposed is mitigated by the use of Cross Currency Swap contracts, which fix
the rate. See details of the Company's hedging in
Note 7 - Financial instruments
.
As of June 30, 2023, the Company was in compliance with the financialcovenants.
Series International - CCU S.A.
On January 19, 2022, the Company issued and placed in the internationalmarkets
bonds in the amount of USD 600,000,000 (equivalent to ThCh$ 480,996,000 as of
June 30, 2023), with an annual interest rate of 3.350%, payable semiannually
fora term of 10 years, and payment of principal in one installment at maturity
on January 19, 2032, subject to Rule 144 and Regulation Sof the U.S.
Securities Act of 1933.
Bond Serie R - CCU S.A.
On August 30, 2022 and under number 1,115, CCU S.A. registered inthe relevant
securities registry a new line of bonds, in which a line of 30-year bonds was
established, under which the issuer may issueone or more series of bonds to
the market.
As stated in the complementary public documents dated August 26,2022, the
Series R Bond, bearer and dematerialized, has been placed for a total of UF 4
million (equivalent to ThCh$ 144,357,920 as ofJune 30, 2023), maturing on
September 15, 2042. The Series R bonds will accrue a compounded annual
interest rate of 2.70% on the outstandingprincipal, expressed in Unidades de
Fomento, calculated on the basis of equal semesters of 180 days, equivalent to
1.3410% semiannually.Interest will be accrued as from September 15, 2022, and
will be paid semi-annually as from March 15, 2023. The principal will be
paidat the end of the bond term.
The issue was subscribed with Banco BICE as representative of thebondholders
and paying bank, requiring that the Company complies with the following
covenants with respect to its Consolidated FinancialStatements and other
specific requirements:
a. Maintain at the end of each quarter a level of Consolidated Net
Financial Debt reflected in each of itsquarterly Consolidated
Financial Statements not greater than 1.5 times defined as the ratio
between Net Financial Debt and Total AdjustedEquity, hereinafter
"Consolidated Net Financial Debt Level". To determine the Consolidated
Net Financial Debt Level, it willbe based on the quarterly
Consolidated Financial Statements and the following will be
considered: /i/ "Net Financial Debt",the difference between
/x/ the unpaid amount of the "Financial Debt", which is the sum
of the lines, current and non-current,Bank loans, Bonds and
Obligations for financial leases, contained in the Note Other
financial liabilities, and /ii/ "Total AdjustedEquity" the sum of
/x/ Total Equity e /y/ the sum of the accounts Provisional
Dividends, Dividends provisioned according to policy,as well as all
other accounts related to provision of dividends contained in
the Statement Consolidated of Changes in the Issuer's Equity.
F-
101
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
b. The Issuer must maintain a Consolidated
Financial Expense Coverage
of no less than three times
definedas the ratio between ORBDA
9
and Financial Expenses. ORBDAis defined as the sum of the items Gross margin and Other income per
function minus the items Distribution expenses, Administrative expenses,and Other expenses per function
registered in the Consolidated Financial Statments of Incomes of the quarterly Consolidated
FinancialStatement of the issuer, plus the Depreciation and Amortization line recorded in the Note Costs
and Expenses by Nature, Financial Expensesrefers to the account of the same name referred to in the
Consolidated Statement of Income by Function. The Consolidated Financial ExpensesCoverage Ratio will
be calculated for the period of 12 consecutive months prior to the date of the corresponding
Consolidated FinancialStatements including the closing month of said Consolidated Financial Statements.
c. The issuer must maintain an Adjusted Equity at a consolidated level
for an amount of at least equal toThCh$ 312,516,750. For these
purposes, Adjusted Equity corresponds to the sum of /i/ the Equity
account attributable to the owners ofthe controlling entity in the
Consolidated Statement of Financial Position, and /ii/ the sum of
the accounts Dividends, Dividends provisionedaccording to policy,
as well as all other accounts relating to the provision of dividends,
contained in the Consolidated Statement ofChanges in Equity.
d. The issued must maintain Lien-Free Assets for an amount equal to at least 1.2 times the unpaid
amountof the Financial Debt without collateral. For these purposes, the assets and debts will
be valued at book value. The following shall beunderstood: /a/ Assets Free of Liens is the
difference between /i/ the Total Assets account in the Consolidated Statement of FinancialPosition,
and /ii/ the assets given as guarantees indicated in the Note on Contingencies and Commitments
of the Consolidated FinancialStatements; and /b/ Fianancial Debt is the definition given
to said term in numeral Four letter a/ /i/ of the Fifteenth clause of theIssuance Contract.
It is expressly recorded and established that as of the mandatory entry of IFRS 16 on
January 1, 2019, which was issuedand approved by the International Accounting Standards Board
regarding the calculation of Financial Debt that must be made in accordancewith numerals
Four and Five of Clause Fifteen of the Issuance Contract after said date. The account or
respective subaccount refers tothe total amount of the liability for obligation for rights of use
assets or the name that the Commission defines for this purpose. Dueto the entry of the
aforementioned standard, it must be disclosed as a financial liability within the items, Other
current financial liabilitiesand Other non-current financial liabilities, which will not be
considered, incorporated or used for the calculation and determinationof said Financial Debt.
e. Maintain, directly or indirectly, the ownership of more than fifty percent of the social rights and ofthe subscribed
and paid shares, respectively, of: /a/ Cervecera CCU Chile Limitada and /b/ Embotelladoras Chilenas Unidas S.A.
f. Not sell, nor allow the sale of, nor assign the ownership of, nor transfer and/or in
any way alienate,either through a transaction or a series of transactions, directly or
indirectly, assets of the Company's property and/or its subsidiariesnecessary, to
maintain in Chile, directly and/or through one or more Subsidiaries, a nominal installed
capacity for the production withoutdistinction of Beers and/or non-alcoholic
Beverages and/or Nectars and/or Mineral and/or Packaged Waters, Hereinafter, the
"EssentialBusinesses" equal to and not inferior to either with respect to one or more of
the aforementioned categories or all of them together,15.9 million hectoliters per year.
g. Maintain directly or through a Subsidiary, the ownership of the trademark "CRISTAL", brand orword, for beer,
in class 32 of the International Classifier of Products and Services for the registration of trademarks.
h. Not to make investments in instruments issued by "related parties" other
than the Company'sSubsidiaries, nor to carry out other operations
outside its normal line of business, under conditions different
from those establishedin Chapter XVI of open stocks companies law.
As of June 30, 2023, the Company was in compliance with the financialcovenants.
Series D Bonds - VSPT S.A.
On December 12, 2019 under the number 986, VSPT recorded in theSecurities
Registry the issuance of a 10-years Bonds line. The issuer may issue one or
more series of Bonds directed to the market general.
By public complimentary deed on June 10, 2020, VSPT recorded inthe Securities
Record the issue of Bonds Series D for UF 1.5 millions (equivalent to ThCh$
54,134,220 as of June 30, 2023), maturing on June 1, 2025. The interest and
capital will be paidsemiannually from December 1, 2020 at a fixed interest
rate of 1.00% annually.
-------------------------------------------------------------------------------
9
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
102
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The issue was subscribed with Banco BICE as representative of thebond holders
and as paying bank and requires that the Company comply with the following
financial covenants on its Consolidated FinancialStatements and other specific
requirements:
a. Maintain at the end of each quarter a level of Consolidated Net Financial Debt reflected
in each of itsquarterly Consolidated Financial Statements not greater than 1.5 times
defined as the ratio between Net Financial Debt and Total AdjustedEquity, hereinafter
"Consolidated Net Financial Debt Level". To determine the Consolidated Net Financial
Debt Level, it willbe based on the quarterly Consolidated Financial Statements and the
following will be considered: /i/ "Net Financial Debt",the difference between /x/ the
unpaid amount of the "Financial Debt", which is the sum of the lines, current and
non-current,Bank loans, Bonds and Obligations for financial leases, contained in the Note
Other financial liabilities and will not be considered forthe calculation and determination
of Financial Debt Net, the total amount of the liability for the obligation for
rights to use assetsof the account or subaccount of "IFRS 16", current and non-current,
and /y/ the balance of the Cash and Cash Equivalents itemcontained in the Statement
Consolidated Financial Position of the Issuer, and /ii/ "Total Adjusted Equity" the
sum of /x/Total Equity e /y/ the sum of the accounts Provisional Dividends, Dividends
provisioned according to policy, as well as all other accountsrelated to provision of
dividends contained in the Statement Consolidated of Changes in the Issuer's Equity.
b. The Issuer must maintain a Consolidated
Financial Expense Coverage
of no less than 2.5 times defined
asthe ratio between ORBDA
10
and Financial Expenses hereinafter,"Consolidated Financial Expense Coverage". For these purposes the following must
be considered: /i/ ORBDA is defined as thesum of the items Gross margin and Other income per function, minus the
items Distribution expenses, Administrative expenses and Otherexpenses per function registered in the Consolidated
Financial Statments of Incomes of the quarterly Consolidated Financial Statementof the issuer, plus the Depreciation
and Amortization line recorded in the Note Costs and Expenses by Nature, /ii/ Financial Expensesrefers to the account
of the same name referred to in the Consolidated Statement of Income by Function, The Consolidated Financial
ExpensesCoverage Ratio will be calculated for the period of 12 consecutive months prior to the date of the
corresponding Consolidated FinancialStatements, including the closing month of said Consolidated Financial Statements.
c. The issuer must maintain an Adjusted Equity at a consolidated level for an
amount of at least equal to ThCh$ 100,000,000 at the issuing of every quarterly
Consolidated Financial Statement. For these purposes, Adjusted Equity
corresponds to the sum of /i/ the Equity account attributable to the owners of
the controlling entity in the Consolidated Statement of Financial Position,
/ii/ the sum of the accounts Dividends, Dividends provisioned according to
policy, as well as all other accounts relating to the provision of dividends,
contained in the Consolidated Statement of Changes in Equity of the issuer.
d. Not to make investments in instruments issued by "related parties" other than the
Company'sSubsidiaries, nor to carry out other operations outside its normal line of
business, under conditions different from those establishedin the contract with related
parties, and neither carry out other operations outside its normal line of business.
e. It is obliged to record the provisions that arise from adverse contingencies, which in the
opinion ofthe administration should be referred to in the Consolidated Financial Statements.
The exchange rate risk to which Bond D is exposed is proportionallymitigated
through the use of Cross Currency Swap contracts. See detail of the Company's
hedging in
Note7 - Financial Instruments.
As of June 30, 2023, the subsidiary was in compliance with the financialcovenant
s.
-------------------------------------------------------------------------------
10
ORBDA, for the Company purposes, is defined as Adjusted Operating Result
before Depreciation and Amortization.
F-
103
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 22 Right of use assetsand Lease liabilities
Right of use assets
The net book value of lands, buildings, machinery, fixtures andaccessories,
and other property, plant and equipment corresponds to financial lease
contracts. The movement for assets by right of useis as follows:
Land and buildings Machinery Fixtures, accessories and other Total
properties, plants and equipment
ThCh$ ThCh$ ThCh$ ThCh$
As of January 1, 2022
Historic cost 34,402,173 10,411,400 1,568,746 46,382,319
Accumulated depreciation (11,495,723) (6,124,672) (425,941) (18,046,336)
Book Value 22,906,450 4,286,728 1,142,805 28,335,983
Additions 9,079,630 319,036 2,694,578 12,093,244
Conversion effect (1,815,774) (2,671,663) 31,082 (4,456,355)
historic (cost)
Depreciation (*) (6,777,557) (1,878,504) (1,033,172) (9,689,233)
Conversion effect 1,059,617 1,514,005 (5,959) 2,567,663
(depreciation)
Other increases 4,935,759 1,203,792 585,120 6,724,671
(decreases) (1)
Divestitures (cost) (977,851) - - (977,851)
Divestitures 267,849 - - 267,849
(depreciation)
Sub-Total 5,771,673 (1,513,334) 2,271,649 6,529,988
Book Value 28,678,123 2,773,394 3,414,454 34,865,971
As of December 31, 2022
Historic cost 44,902,809 8,686,624 5,697,398 59,286,831
Accumulated depreciation (16,224,686) (5,913,230) (2,282,944) (24,420,860)
Book Value 28,678,123 2,773,394 3,414,454 34,865,971
As of June 30, 2023
Additions 6,781,013 1,582,583 100,588 8,464,184
Additions for business - - 26,726 26,726
combinations (cost) (2)
Conversion effect (1,415,382) (1,901,844) 695 (3,316,531)
historic (cost)
Depreciation (*) (4,061,430) (1,037,308) (950,108) (6,048,846)
Conversion effect 912,339 1,228,510 (1,424) 2,139,425
(depreciation)
Other increases 920,163 1,111,529 283,389 2,315,081
(decreases) (1)
Divestitures (cost) (144,097) - - (144,097)
Divestitures 38,247 - - 38,247
(depreciation)
Sub-Total 3,030,853 983,470 (540,134) 3,474,189
Book Value 31,708,976 3,756,864 2,874,320 38,340,160
As of June 30, 2023
Historic cost 49,607,978 10,379,057 5,993,261 65,980,296
Accumulated depreciation (17,899,002) (6,622,193) (3,118,941) (27,640,136)
Book Value 31,708,976 3,756,864 2,874,320 38,340,160
(1) It corresponds mainly to the financial effect of the application
of IAS29 "Financial Information in Hyperinflationary Economies.
(2) See
Note 15 - Business Combinations,letter a)
.
(*)This amount includes ThCh$ 451,074 (
ThCh
$413,040 as of June 30, 2022) for depreciation activated by agricultural
assets, associated to the cost of sale of wine.
F-
104
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Lease liabilities
Lease libialities that accrue interest classified by type of obligationand by
their classification in the Consolidated Statement of Financial Position are
the following:
As of June 30, 2023 As of December 31, 2022
Current Non-current Current Non-current
ThCh$ ThCh$ ThCh$ ThCh$
Lease liabilities (1) 8,112,477 35,633,127 9,120,616 31,306,552
Total 8,112,477 35,633,127 9,120,616 31,306,552
(1) See
Note 5 - Risk administration.
The most significant financial lease agreements are as follows:
CCU S.A.
In December, 2004, the Company sold a piece of land previously classifiedas
investment property. As part of the transaction, the Company leased eleven
floors of a building under construction on the mentionedpiece of land.
The building was completed during 2007, and on June 28, 2007, theCompany
entered into a 25-years lease agreement with Compania de Seguros de Vida
Consorcio Nacional de Seguros S.A., fora total amount of UF 688,635,63 with an
annual interest rate of 7.07%. The current value of the agreement amounted to
ThCh$ 10,403,632as of December 31, 2007. The agreement also grants CCU the
right or option to acquire the assets contained in the agreement (real
estate,furniture and facilities) as from month 68 of the lease. The lease
rentals committed are according to the conditions prevailing in themarket.
At the time of sale, the Company recognized ThCh$ 3,108,950 as again for the
building portion not leased by the Company and ThCh$ 2,276,677 as a liability
that was deferred until completion of the building.At this time, the Company
recorded the transaction as a financial lease.
On February 28, 2018, the Company carried out an amendment to thecontract with
Compania de Seguros de Vida Consorcio Nacional de Seguros S.A., recording a
balance debt of UF 608,375, with2.59% annual interest and maturity on February
5, 2048.
The book value, nominal value, and interest rates of these leaseliabilities
are as follows:
Current lease liabilities
As of June 30,2023
Leaseliabilities at book value:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency 0 to 3 3 months Total Type of Interest
Tax ID country party name country months to 1 year amortization Rate
Tax ID
ThCh$ ThCh$ ThCh$ (%)
Lease
liabilities
79.862.750-3 Transportes Chile 97.030.000-7 Banco del Chile UF 45,490 117,515 163,005 Monthly 2.14
CCU Estado
Limitada de Chile
90.413.000-1 Compania Chile 99.012.000-5 Consorcio Chile UF 134,003 409,102 543,105 Monthly 3.95
Cervecerias Nacional
Unidas S.A. de Seguros
S.A.
Subtotal 179,493 526,617 706,110
0-E CCU and Chile - Suppliers Chile CLP 129,043 234,570 363,613 Monthly 5.61
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile UF 1,476,542 3,923,602 5,400,144 Monthly 2.64
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile USD 197,331 335,884 533,215 Monthly 3.99
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina ARS 31,694 93,600 125,294 Monthly 48.29
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina USD 220,864 646,329 867,193 Monthly 10.13
subsidiaries of PPE
0-E CCU and Uruguay - Suppliers Uruguay UYU 29,227 87,681 116,908 Monthly 0.84
subsidiaries of PPE
Subtotal 2,084,701 5,321,666 7,406,367
(leases
IFRS )
Total 2,264,194 5,848,283 8,112,477
(*)
Theamount based on the undiscounted contractual flows is found in
Note 5 - Risk administration
.
F-
105
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Lease liabilities at nominal value:
Maturity
Debtor Company Debtor Lending Creditor Creditor Currency 0 to 3 3 months Total Type of
Tax ID country party name country months to 1 year amortization
Tax ID
ThCh$ ThCh$ ThCh$
Lease
liabilities
79.862.750-3 Transportes Chile 97.030.000-7 Banco del Chile UF 48,727 125,074 173,801 Monthly
CCU Limitada Estado
de Chile
90.413.000-1 Compania Chile 99.012.000-5 Consorcio Chile UF 312,567 937,702 1,250,269 Monthly
Cervecerias Nacional
Unidas S.A. de Seguros
S.A.
Subtotal 361,294 1,062,776 1,424,070
0-E CCU and Chile - Suppliers Chile CLP 137,400 256,311 393,711 Monthly
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile UF 1,711,054 4,391,176 6,102,230 Monthly
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile USD 63,750 110,626 174,376 Monthly
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina ARS 55,541 164,257 219,798 Monthly
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina USD 272,955 798,863 1,071,818 Monthly
subsidiaries of PPE
0-E CCU and Uruguay - Suppliers Uruguay UYU 35,289 105,866 141,155 Monthly
subsidiaries of PPE
Subtotal 2,275,989 5,827,099 8,103,088
(leases
IFRS )
Total 2,637,283 6,889,875 9,527,158
As of December31, 2022
Lease liabilities at book value:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency 0 to 3 3 months Total Type of Interest
Tax ID country party name country months to 1 year amortization Rate
Tax ID
ThCh$ ThCh$ ThCh$ (%)
Financial
leases
obligations
79.862.750-3 Transportes Chile 97.030.000-7 Banco del Chile UF 44,036 133,285 177,321 Monthly 2.14
CCU Estado
Limitada de Chile
90.413.000-1 Compania Chile 99.012.000-5 Consorcio Chile UF 128,118 391,120 519,238 Monthly 3.95
Cervecerias Nacional
Unidas S.A. de Seguros
S.A.
Subtotal 172,154 524,405 696,559
0-E CCU and Chile - Suppliers Chile CLP 174,057 182,644 356,701 Monthly 4.40
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile Euros 28,744 28,744 57,488 Monthly 1.48
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile UF 1,700,536 4,205,015 5,905,551 Monthly 2.17
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile USD 197,018 898,826 1,095,844 Monthly 3.95
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina ARS 40,403 120,954 161,357 Monthly 27.44
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina USD 186,839 551,073 737,912 Monthly 36.34
subsidiaries of PPE
0-E CCU and Uruguay - Suppliers Uruguay UYU 27,301 81,903 109,204 Monthly 0.84
subsidiaries of PPE
Subtotal 2,354,898 6,069,159 8,424,057
(leases
IFRS )
Total 2,527,052 6,593,564 9,120,616
(*)
Theamount based on the undiscounted contractual flows is found in
Note 5 - Risk administration
.
Lease liabilities at nominal value:
Maturity
Debtor Company Debtor Lending Creditor Creditor Currency 0 to 3 3 months Total Type of
Tax ID country party name country months to 1 year amortization
Tax ID
ThCh$ ThCh$ ThCh$
Financial
leases
obligations
79.862.750-3 Transportes Chile 97.030.000-7 Banco del Chile UF 47,962 142,954 190,916 Monthly
CCU Limitada Estado
de Chile
90.413.000-1 Compania Chile 99.012.000-5 Consorcio Chile UF 304,093 912,278 1,216,371 Monthly
Cervecerias Nacional
Unidas S.A. de Seguros
S.A.
Subtotal 352,055 1,055,232 1,407,287
0-E CCU and Chile - Suppliers Chile CLP 166,793 193,421 360,214 Monthly
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile Euros 29,691 29,691 59,382 Monthly
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile UF 1,738,738 4,341,637 6,080,375 Monthly
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile USD 226,897 983,751 1,210,648 Monthly
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina ARS 70,951 212,358 283,309 Monthly
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina USD 222,679 656,715 879,394 Monthly
subsidiaries of PPE
0-E CCU and Uruguay - Suppliers Uruguay UYU 32,678 98,035 130,713 Monthly
subsidiaries of PPE
Subtotal 2,488,427 6,515,608 9,004,035
(leases
IFRS )
Total 2,840,482 7,570,840 10,411,322
F-
106
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Non-current lease liabilities
As of June 30,2023
Lease liabilities at book value:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency Over 1 Over 3 More than Total Type of
Tax ID country party name country year years 5 years amortizati
Tax ID to 3 years to 5 years
ThCh$ ThCh$ ThCh$ ThCh$
Lease
liabilities
79.862.750-3 CCU and Chile 97.030.000-7 Suppliers Chile UF 134,092 17,777 - 151,869 Month
subsidiaries of PPE
90.413.000-1 CCU and Chile 99.012.000-5 Suppliers Chile UF 1,086,210 1,086,210 18,494,912 20,667,332 Month
subsidiaries of PPE
Subtotal 1,220,302 1,103,987 18,494,912 20,819,201
0-E CCU and Chile - Suppliers Chile CLP 61,177 - - 61,177 Month
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile UF 7,252,737 3,393,390 1,425,446 12,071,573 Month
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile USD 509,677 293,566 580,178 1,383,421 Month
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina ARS 70,299 - - 70,299 Month
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina USD 857,655 261,865 - 1,119,520 Month
subsidiaries of PPE
0-E CCU and Uruguay - Suppliers Uruguay UYU 107,936 - - 107,936 Month
subsidiaries of PPE
Subtotal 8,859,481 3,948,821 2,005,624 14,813,926
(leases
IFRS )
Total 10,079,783 5,052,808 20,500,536 35,633,127
Interest
on Rate
(%)
ly 2.14
ly 3.95
ly 5.61
ly 2.64
ly 3.99
ly 50.00
ly 10.13
ly 0.84
(*)
Theamount based on the undiscounted contractual flows is found in
Note 5 - Risk administration
.
Lease liabilities at nominal value:
Maturity
Debtor Company Debtor Lending Creditor Creditor Currency Over 1 year Over 3 More than Total Type o
Tax ID country party name country to 3 years years 5 years amortiza
Tax ID to 5 years
ThCh$ ThCh$ ThCh$ ThCh$
Lease
liabilities
79.862.750-3 Transportes Chile 97.030.000-7 Banco del Chile UF 143,469 17,934 - 161,403 Mon
CCU Estado
Limitada de Chile
90.413.000-1 Compania Chile 99.012.000-5 Consorcio Chile UF 2,500,538 2,500,538 24,588,628 29,589,704 Mon
Cervecerias Nacional
Unidas S.A. de Seguros
S.A.
Subtotal 2,644,007 2,518,472 24,588,628 29,751,107
0-E CCU and Chile - Suppliers Chile CLP 72,996 - - 72,996 Mon
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile UF 8,435,941 3,813,825 1,576,389 13,826,155 Mon
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile USD 159,367 71,898 425,933 657,198 Mon
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina ARS 103,648 - - 103,648 Mon
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina USD 1,029,355 318,778 - 1,348,133 Mon
subsidiaries of PPE
0-E CCU and Uruguay - Suppliers Uruguay UYU 135,610 - - 135,610 Mon
subsidiaries of PPE
Subtotal 9,936,917 4,204,501 2,002,322 16,143,740
(leases
IFRS )
Total 12,580,924 6,722,973 26,590,950 45,894,847
f
tion
thly
thly
thly
thly
thly
thly
thly
thly
As of December31, 2022
Lease liabilities at book value:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency Over 1 Over 3 More than Total Type of
Tax ID country party name country year years 5 years amortizat
Tax ID to 3 years to 5 years
ThCh$ ThCh$ ThCh$ ThCh$
Financial
leases
obligations
79.862.750-3 Transportes Chile 97.030.000-7 Banco del Chile UF 170,055 52,636 - 222,691 Mont
CCU Estado
Limitada de Chile
90.413.000-1 Compania Chile 99.012.000-5 Consorcio Chile UF 1,094,619 1,174,581 18,104,273 20,373,473 Mont
Cervecerias Nacional
Unidas de Seguros
S.A. S.A.
Subtotal 1,264,674 1,227,217 18,104,273 20,596,164
0-E CCU and Chile - Suppliers Chile CLP 30,814 - - 30,814 Mont
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile UF 6,590,796 1,694,284 59,998 8,345,078 Mont
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile USD 539,308 203,634 875,659 1,618,601 Mont
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina ARS 132,171 - - 132,171 Mont
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina USD 427,261 - - 427,261 Mont
subsidiaries of PPE
0-E CCU and Uruguay - Suppliers Uruguay UYU 137,381 19,082 - 156,463 Mont
subsidiaries of PPE
Subtotal 7,857,731 1,917,000 935,657 10,710,388
(leases
IFRS )
Total 9,122,405 3,144,217 19,039,930 31,306,552
Interest
ion Rate
(%)
hly 2.14
hly 3.95
hly 4.40
hly 2.17
hly 3.95
hly 27.44
hly 36.34
hly 0.84
(*)
Theamount based on the undiscounted contractual flows is found in
Note 5 - Risk administration
.
F-
107
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Lease liabilities at nominal value:
Maturity (*)
Debtor Company Debtor Lending Creditor Creditor Currency Over 1 year Over 3 More than Total Type o
Tax ID country party name country to 3 years years 5 years amortiza
Tax ID to 5 years
ThCh$ ThCh$ ThCh$ ThCh$
Financial
leases
obligations
79.862.750-3 Transportes Chile 97.030.000-7 Banco del Chile UF 183,093 53,801 - 236,894 Mon
CCU Estado
Limitada de Chile
90.413.000-1 Compania Chile 99.012.000-5 Consorcio Chile UF 2,432,740 2,432,740 24,530,137 29,395,617 Mon
Cervecerias Nacional
Unidas S.A. de Seguros
S.A.
Subtotal 2,615,833 2,486,541 24,530,137 29,632,511
0-E CCU and Chile - Suppliers Chile CLP 44,116 - - 44,116 Mon
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile UF 6,874,065 1,807,266 68,691 8,750,022 Mon
subsidiaries of PPE
0-E CCU and Chile - Suppliers Chile USD 659,316 307,154 1,366,483 2,332,953 Mon
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina ARS 201,342 - - 201,342 Mon
subsidiaries of PPE
0-E CCU and Argentina - Suppliers Argentina USD 516,106 - - 516,106 Mon
subsidiaries of PPE
0-E CCU and Uruguay - Suppliers Uruguay UYU 168,047 24,299 - 192,346 Mon
subsidiaries of PPE
Subtotal 8,462,992 2,138,719 1,435,174 12,036,885
(leases
IFRS )
Total 11,078,825 4,625,260 25,965,311 41,669,396
f
tion
thly
thly
thly
thly
thly
thly
thly
thly
Below is the detail of future payments and the value of lease liabilities:
As of June 30, 2023
Gross Amount Interest Value
ThCh$ ThCh$ ThCh$
0 to 3 months 2,637,283 373,089 2,264,194
3 months to 1 year 6,889,875 1,041,592 5,848,283
Over 1 year to 3 years 12,580,924 2,501,141 10,079,783
Over 3 years to 5 years 6,722,973 1,670,165 5,052,808
More than 5 years 26,590,950 6,090,414 20,500,536
Total 55,422,005 11,676,401 43,745,604
As of December 31, 2022
Gross Amount Interest Value
ThCh$ ThCh$ ThCh$
0 to 3 months 2,840,482 313,430 2,527,052
3 months to 1 year 7,570,840 977,276 6,593,564
Over 1 year to 3 years 11,078,825 1,956,420 9,122,405
Over 3 years to 5 years 4,625,260 1,481,043 3,144,217
More than 5 years 25,965,311 6,925,381 19,039,930
Total 52,080,718 11,653,550 40,427,168
F-
108
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Reconciliation of liabilitiesarising from financing activities:
As of December Flows Accrual of Change in Increase Increase Others As of J
31, 2022 interest foreign through through 30, 20
currency new leases new leases
and unit per
adjustment
Payments Acquisitions
Principal Interest
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Other
financial
liabilities
Current
Bank 134,737,116 (30,954,686) (12,125,420) 22,662,341 6,532,345 (36,662) - - (91,193,491) 29,62
borrowings
Bond payable 30,871,086 (3,235,805) (15,293,999) - 15,194,299 228,514 - - 16,813,979 44,57
Lease 9,120,616 (5,863,653) (987,272) - 982,335 649,762 26,767 1,286,212 2,897,710 8,11
liabilities
Total others 174,728,818 (40,054,144) (28,406,691) 22,662,341 22,708,979 841,614 26,767 1,286,212 (71,481,802) 82,31
financial
liabilities
current
Non-current
Bank 84,839,970 (10,000,000) - 9,259,335 - 1,048 - - 90,294,934 174,39
borrowings
Bond payable 1,081,682,928 - - - - (16,101,827) - - (16,819,590) 1,048,76
Lease 31,306,552 - - - - 277,344 - 7,177,972 (3,128,741) 35,63
liabilities
Total others 1,197,829,450 (10,000,000) - 9,259,335 - (15,823,435) - 7,177,972 70,346,603 1,258,78
financial
liabilities
non-current
Total Other 1,372,558,268 (50,054,144) (28,406,691) 31,921,676 22,708,979 (14,981,821) 26,767 8,464,184 (1,135,199) 1,341,10
financial
liabilities
une
23
1,543
8,074
2,477
2,094
5,287
1,511
3,127
9,925
2,019
As of December Flows Accrual of Change in Increase Increase Others As of J
31, 2021 interest foreign through through 30, 20
currency new leases new leases
and unit per
adjustment
Payments Acquisitions
Principal Interest
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Other
financial
liabilities
Current
Bank 76,169,204 (14,927,700) (2,129,516) 19,088,327 5,467,514 214,954 - - 57,609,532 141,49
borrowings
Bond payable 8,087,630 (2,879,881) (3,733,611) - 11,660,828 989,260 - - 3,233,074 17,35
Lease 6,152,361 (4,682,314) (542,953) - 868,969 776,865 - 3,091,320 3,094,266 8,75
liabilities
Total others 90,409,195 (22,489,895) (6,406,080) 19,088,327 17,997,311 1,981,079 - 3,091,320 63,936,872 167,60
financial
liabilities
current
Non-current
Bank 114,492,596 - - 723,165 - 10,758 - - (53,405,581) 61,82
borrowings
Bond payable 339,740,414 - - 553,149,355 - 92,543,977 - - (3,233,074) 982,20
Lease 29,009,023 - - - - 1,856,086 - 5,749,564 (3,274,796) 33,33
liabilities
Total others 483,242,033 - - 553,872,520 - 94,410,821 - 5,749,564 (59,913,451) 1,077,36
financial
liabilities
non-current
Total Other 573,651,228 (22,489,895) (6,406,080) 572,960,847 17,997,311 96,391,900 - 8,840,884 4,023,421 1,244,96
financial
liabilities
une
22
2,315
7,300
8,514
8,129
0,938
0,672
9,877
1,487
9,616
F-
109
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 23 Trade and other payables
Trade and other payables are detailed as follows:
As of June 30, 2023 As of December 31, 2022
Current Non-current Current Non-current
ThCh$ ThCh$ ThCh$ ThCh$
Suppliers 301,162,220 - 420,602,049 -
Notes payable 1,121,371 7,946 1,043,743 20,945
Trade an other current payables 302,283,591 7,946 421,645,792 20,945
Withholdings payable 50,246,710 - 69,669,485 -
Trade accounts payable withholdings 50,246,710 - 69,669,485 -
Total 352,530,301 7,946 491,315,277 20,945
Note 24 Other provisions
Provisions recorded in the consolidated statement of financial positionare
detailed as follows:
As of June 30, 2023 As of December 31, 2022
Current Non-current Current Non-current
ThCh$ ThCh$ ThCh$ ThCh$
Litigation 277,429 223,505 253,757 242,545
Others 2,402,383 137,494 2,402,383 137,413
Total 2,679,812 360,999 2,656,140 379,958
The changes in provisions are detailed as follows:
Litigation (1) Others Total
ThCh$ ThCh$ ThCh$
As of January 1, 2022 576,587 2,419,465 2,996,052
As of December 31, 2022
Incorporated 507,989 308,194 816,183
Used (312,708) (206,154) (518,862)
Released (97,685) - (97,685)
Conversion effect (177,881) 18,291 (159,590)
Changes (80,285) 120,331 40,046
As of December 31, 2022 496,302 2,539,796 3,036,098
As of June 30, 2023
Incorporated 248,150 - 248,150
Used (101,223) - (101,223)
Released (40,188) - (40,188)
Conversion effect (102,107) 81 (102,026)
Changes 4,632 81 4,713
As of June 30, 2023 500,934 2,539,877 3,040,811
(1) See
Note 35 - Contingencies and commitments
.
F-
110
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The maturities of provisions as of June 30, 2023, are detailed asfollows:
Litigation Others Total
ThCh$ ThCh$ ThCh$
Less than one year 277,429 2,402,383 2,679,812
Between 1 and 5 years 177,997 137,494 315,491
More than 5 years 45,508 - 45,508
Total 500,934 2,539,877 3,040,811
The maturities of provisions as of December 31, 2022, are detailedas follows:
Litigation Others Total
ThCh$ ThCh$ ThCh$
Less than one year 253,757 2,402,383 2,656,140
Between 1 and 5 years 198,070 137,413 335,483
More than 5 years 44,475 - 44,475
Total 496,302 2,539,796 3,036,098
The provisions for Litigation and Other - current and non-currentcorrespond to
estimates made by the Administration, intended to cover eventual effects that
may derive from the resolution of trials/claimsor uncertainties to which the
Company is exposed. Such trails/claims or uncertainties derive from
transactions that are part of the normalcourse of CCU's business and the
countries where it operates and whose details and scopes are not fully public
knowledge, so that itsdetailed exposition could affect the interests of the
Company and the progress of the resolution of these, according to the legal
reservesof each administrative and judicial procedure. Therefore, based on the
provisions of IAS 37 "Provisions, contingent liabilities andcontingent
assets", paragraph 92, although the amounts provisioned in relation to these
trials/claims or uncertainties are indicated,no further detail of the same at
the closing of these Financial Statements.
Significant litigation proceedings which the Company is exposedto at a
consolidated level are detailed in
Note 35 - Contingencies and commitments
.
Management believes that based on the development of such proceedingsto date,
the provisions established on a case by case basis are adequate to cover the
possible adverse effects that could arise from theseproceedings.
Note 25 Income taxes
Tax receivables
Taxes receivables are detailed as follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Refundable tax previous year 29,826,284 2,566,562
Tax payments in advance 11,626,341 34,996,163
Benefits for tax losses 4,194,517 8,545,035
Other credits 541,499 599,765
Total 46,188,641 46,707,525
F-
111
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Current tax liabilities
Tax payables are detailed as follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Income tax 3,951,950 2,649,908
Monthly tax payment in advance 2,397,710 5,048,222
Tax under Article N°21 50,362 244,604
Others 713,401 1,121,340
Total 7,113,423 9,064,074
Tax expense
The detail of income tax and deferred income tax expense is as follows:
For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
M$ M$ M$ M$
Income as per deferred tax related to the 1,274,085 1,214,799 168,803 8,001,424
origin and reversal of temporary differences
Prior year adjustments 316,402 (1,135,198) 316,402 (1,135,198)
Tax loss benefits 15,319,930 12,413,658 10,040,807 5,816,565
Total deferred tax expense 16,910,417 12,493,259 10,526,012 12,682,791
Current tax expense (23,065,057) (22,157,967) (1,339,849) (4,782,890)
Prior period adjustments (497,606) 120,479 (490,774) 120,479
Total (expenses) income (23,562,663) (22,037,488) (1,830,623) (4,662,411)
for current taxes
(Loss) Income (6,652,246) (9,544,229) 8,695,389 8,020,380
from income tax
Deferred taxes related to items charged or credited directly tothe
Consolidated Statement of Comprehensive Income are detailed as follows:
For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
M$ M$ M$ M$
Net income from 1,761,105 (650,178) 2,260,019 94,658
cash flow hedge
Actuarial gains and losses deriving 271,732 346,282 97,351 238,104
from defined benefit plans
Charge to equity 2,032,837 (303,896) 2,357,370 332,762
F-
112
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Efective Rate
The Company's income tax expense as of June 30, 2023 and 2022represents 10.30%
and 13.16%, respectively of income before taxes. The following is
reconciliation between such effective tax rate andthe statutory tax rate valid
in Chile.
For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ Tasa % ThCh$ Tasa % ThCh$ Tasa % ThCh$ Tasa %
Income 64,614,753 72,555,412 (12,294,301) (15,415,227)
before taxes
Income tax using (17,445,983) 27.00 (19,589,961) 27.00 3,319,461 27.00 4,162,111 27.00
the statutory rate
Adjustments to reach
the effective rate
Tax effect of permanent 10,531,006 (16.30) 11,276,115 (15.54) 4,518,529 36.75 3,756,604 24.37
differences, net
(Valuation)/Reversal 847,532 (1.31) 81,969 (0.11) 257,737 2.10 156,019 1.01
allowance on tax loss
Effect of tax rates in (403,597) 0.63 (297,633) 0.41 774,034 6.30 960,365 6.23
foreing subsidiaries
Prior year (181,204) 0.28 (1,014,719) 1.40 (174,372) (1.42) (1,014,719) (6.58)
adjustments
Income tax, (6,652,246) 10.30 (9,544,229) 13.16 8,695,389 70.73 8,020,380 52.03
as reported
Deferred taxes
Deferred tax assets and liabilities included in the Interim ConsolidatedFinancia
l Statements are detailed as follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Deferred tax assets
Impairment provision of accounts receivable 1,481,275 1,509,712
Other non-tax expenses 24,153,932 28,840,149
Benefits to staff 4,533,293 4,579,775
Inventory impairment provision 1,512,739 1,381,757
Severance indemnity 11,385,209 11,437,005
Inventory valuation 11,513,446 6,677,494
Intangibles 478,861 417,108
Property, Plant and Equipment 6,609,916 6,970,568
Deferred taxes related to assets arising from a single transaction 10,277,428 8,567,251
Other assets 5,222,102 4,881,618
Tax loss carryforwards 31,870,452 21,637,825
Subtotal by deferred tax assets 109,038,653 96,900,262
Deferred tax liabilities offset (77,544,532) (69,703,055)
Total assets from deferred taxes 31,494,121 27,197,207
Deferred taxes liabilities
Property, Plant and Equipment 113,806,420 98,822,514
Agricultural operation expenses 11,121,048 8,796,925
Manufacturing indirect activation costs 9,274,066 8,594,229
Intangibles 21,338,903 22,707,420
Deferred taxes related to liabilities arising from a single transaction 10,789,384 9,113,659
Land 21,245,371 23,473,209
Other liabilities 12,105,697 10,894,927
Subtotal by deferred tax liabilities 199,680,889 182,402,883
Deferred tax assets offset (77,544,532) (69,703,055)
Total liabilities from deferred taxes 122,136,357 112,699,828
Total (90,642,236) (85,502,621)
F-
113
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
No deferred taxes have been recorded for temporary differences betweenthe
taxes and accounting value generated by investments in subsidiaries;
consequently, deferred tax is not recognized for the translationadjustments or
investments in joint ventures and associates.
In accordance with current tax laws in Chile, tax losses do notexpire and can
be applied indefinitely, Argentina, Uruguay and Paraguay tax losses expire
after 5 years and Bolivia tax losses expireafter 3 years.
Changes in deferred tax assets are detailed as follows:
Analysis of the deferred tax movement during the year ThCh$
As of January 1, 2022 (87,514,452)
Other increases (decreases) (1) (43,474,235)
Deferred tax losses tax absorption (1,169,111)
Deferred taxes from tax loss absorption 38,348,112
Conversion effect 6,325,142
Deferred taxes against equity 1,981,923
Sub-Total 2,011,831
As of December 31, 2022 (85,502,621)
As of January 1, 2023
Other increases (decreases) (1) (35,681,227)
Deferred tax losses tax absorption (18,281)
Deferred taxes from tax loss absorption 16,910,417
Conversion effect 13,913,945
Deferred taxes against equity 271,732
Deferred income tax on business combinations (2) (536,201)
Sub-Total (5,139,615)
As of June 30, 2023 (90,642,236)
(1) Corresponds to the financial effect of the application IAS 29 "Financialreporting in hyperinflationary economies.
(2) See
Note 1 - General information, letterC), number (11)
.
Note 26 Employee Benefits
The Company grants short term and employment termination benefitsas part of
its compensation policies.
The Parent Company and its subsidiaries have collective agreementswith their
employees, which establish the compensation and/or short-term and long-term
benefits for their staff, the main featuresof which are described below:
(s) Short-term benefits are generally based on combined plans or agreements, designed to compensate
benefitsreceived, such as paid vacation, annual performance bonuses and compensation through annuities.
(s) Long-term benefits are plans or agreements mainly intended to cover the post-employment benefits
generatedat the end of the labor relationship, be it by voluntary resignation or death of personnel hired.
The cost of such benefits is charged against income, in the "PersonnelExpense"
item.
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114
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
As of June 30, 2023 and December 31, 2022, the total staff benefitsrecorded in
the Interim Consolidated Statement of Financial Position is detailed as
follows:
Employees' Benefits As of June 30, 2023 As of December 31, 2022
Current Non-current Current Non-current
ThCh$ ThCh$ ThCh$ ThCh$
Short term benefits 33,610,707 - 42,254,937 -
Employment termination benefits 212,900 42,312,950 929,338 41,843,524
Total 33,823,607 42,312,950 43,184,275 41,843,524
Short - term benefits
Short-term benefits are mainly comprised of recorded vacation (onaccruals
basis), bonuses and share compensation, Such benefits are recorded when the
obligation is accrued and are usually paid withina 12-month periods,
consequently, they are not discounted.
The total short-term benefits recorded in the Interim ConsolidatedStatement of
Financial Position are detailed as follows:
Short-Term Employees' Benefits As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Vacation 15,851,999 17,778,588
Bonus and compensation 17,758,708 24,476,349
Total 33,610,707 42,254,937
The Company records staff vacation cost on an accrual basis.
Severance Indemnity
The Company records a liability for the payment of an irrevocableseverance
indemnity, originated by collective and individual agreements entered into
with certain groups of employees. Such obligationis determined by means of the
current value of the benefit accrued cost, a method that considers several
factors for the calculation suchas estimates of future continuance, mortality
rates, future salary increases and discount rates. The Company periodically
evaluates theabove-mentioned factors based on historical data and future
projections, making adjustments that apply when checking changes sustainedtrend.
The so-determined value is presented at the current value by using the
severance benefits accrued method. The discount rate isdetermined by reference
to market interest rates curves for high quality entrepreneurial bonds. The
discount rate in Chile was a 6.34%and the Argentina of a 111.68% for the
period ended on June 30, 2023 and the December 31, 2022.
The obligation recorded for severance indemnity is detailed as follows:
Severance Indemnity As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Current 212,900 929,338
Non-current 42,312,950 41,843,524
Total 42,525,850 42,772,862
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115
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
The change in the severance indemnity is detailed as follows:
Severance Indemnity ThCh$
Balance as of January 1, 2022 35,252,855
Current cost of service 3,672,626
Interest cost 2,696,567
Actuarial (Gain) losses 7,103,125
Paid-up benefits (5,530,621)
Past service cost 605,174
Conversion effect (974,031)
Others (52,833)
Changes 7,520,007
As of December 31, 2022 42,772,862
Current cost of service 1,868,404
Interest cost 2,258,500
Actuarial (Gain) losses 1,006,415
Paid-up benefits (4,751,075)
Past service cost 593,920
Conversion effect (1,223,176)
Changes (247,012)
As of June 30, 2023 42,525,850
The figures recorded in the Interim Consolidated Statement of Income,are
detailed as follows:
Expense recognized for severance indemnity For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Current cost of service 1,868,404 1,958,368 1,061,878 1,139,376
Past service cost 593,920 323,997 313,157 213,336
Non-provided paid benefits 7,679,532 3,992,068 3,994,480 1,878,856
Others 184,444 13,905 34,326 (141,230)
Total expense recognized in Consolidated 10,326,300 6,288,338 5,403,841 3,090,338
Interim Statement of Income
Actuarial Assumptions
As mentioned in
Note 2 - Summaryof significant accounting policies, 2.20
, the severance payment obligation is recorded at its actuarial value. The
mainactuarial assumptions used for the calculation of the severance indemnity
obligation are detailed as follows:
Actuarial Assumptions Chile Argentina
As of June 30, 2023 As of December 31, 2022 As of June 30, 2023 As of December 31, 2022
Mortality table RV-2014 RV-2014 Gam '83 Gam '83
Annual interest rate 6,34% 6,34% 111,68% 111,68%
Voluntary employee 4,3% 4,3% "ESA 77 "ESA 77
turnover rate Ajustada" - 50% Ajustada" - 50%
Company's needs 6,1% 6,1% "ESA 77 "ESA 77
rotation rate Ajustada" - 50% Ajustada" - 50%
Salary increase (*) 3,7% 3,7% 99,70% 99,70%
Estimated retirement Officers 60 60 60 60
age for (*)
Others Male 65 65 65 65
Female 60 60 60 60
(*)
Weightedaverage of the Company.
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116
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Sensitivity Analysis
The Following is a sensitivity analysis based on increased (decreased)of 1
percent on the discount rate:
Sensitivity Analysis As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
1% increase in the Discount Rate (Gain) 2,576,235 2,495,883
1% decrease in the Discount Rate (Loss) (2,955,939) (2,862,682)
Personnel expense
The amounts recorded in the Interim Consolidated Statement of Incomeare
detailed as follows:
Personal expense For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Salaries 129,050,465 121,924,945 65,020,626 62,093,243
Employees' 18,942,476 17,514,402 12,766,260 11,371,404
short-term benefits
Total expenses for 147,992,941 139,439,347 77,786,886 73,464,647
short-term employee benefits
Employments 10,326,300 6,288,338 5,403,841 3,090,338
termination benefits
Other staff expense 25,015,160 25,067,712 12,504,908 12,886,475
Total (1) 183,334,401 170,795,397 95,695,635 89,441,460
(1)
See
Note 30 - Natures of cost and expense
.
Note 27 Other non-financialliabilities
The total Other non-financial liabilities are detailed as follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Parent dividend provisioned according to policy 27,212,245 9,164,337
Outstanding parent dividends (1) 1,316,990 1,277,316
Subsidiaries dividends according to policy 3,872,337 9,519,201
Total dividends payable 32,401,572 19,960,854
Income received in advance 877,332 1,357,178
Others 213,528 332,347
Total 33,492,432 21,650,379
Current 33,492,432 21,650,379
Total 33,492,432 21,650,379
(1) See
Note 28 - Common Shareholders'Equity, dividends.
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117
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 28 Common Shareholders'Equity
Subscribed and paid-up Capital
As of June 30, 2023 and December 31, 2022 the Company's capitalshows a balance
of ThCh$ 562,693,346 divided into 369,502,872 shares of common stock without
face value, entirely subscribed and paid-up.The Company has issued only one
series of common shares. Such common shares are registered for trading at the
Santiago Stock Exchangeand the Chilean Electronic Stock Exchange, and at the
New York Stock Exchange /NYSE), evidenced by ADS (American Depositary Shares),
withan equivalence of two shares per ADS (Se
e
Note 1 - General information letter A)
).
The Company has not issued any others shares or convertible instrumentsduring
the period, thus changing the number of outstanding shares as June 30, 2023
and December 31, 2022.
Capital Management
The main purpose, when managing shareholder's capital, isto maintain an
adequate credit risk profile and a healthy capital ratio, allowing the access
of the Company to the capitals market forthe development of its medium and
long term purposes and, at the same time, to maximize shareholder's return.
Earnings per share
The basic earnings per share is calculated as the ratio betweenthe net income
(loss) for the period attributable to equity holders of the parent and the
weighted average number of valid outstandingshares during such term.
The diluted earnings per share is calculated as the ratio betweenthe net
income (loss) for the period attributable to equity holders of the parent and
the weighted average additional common shares thatwould have been outstanding
if it had become all ordinary potential dilutive shares.
The information used for the calculation of the earnings as pereach basic and
diluted share is as follows:
Earnings per share For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
Equity holders of the 54,424,489 54,089,322 (3,943,498) (10,455,142)
controlling company (ThCh$)
Weighted average 369,502,872 369,502,872 369,502,872 369,502,872
number of shares
Basic earnings per share 147.29 146.38 (10.67) (28.30)
(in Chilean pesos)
Equity holders of the 54,424,489 54,089,322 (3,943,498) (10,455,142)
controlling company (ThCh$)
Weighted average 369,502,872 369,502,872 369,502,872 369,502,872
number of shares
Diluted earnings per 147.29 146.38 (10.67) (28.30)
share (in Chilean pesos)
As of June 30, 2023 and December 31, 2022, the Company has not issuedany
convertible or other kind of instruments creating diluting effects.
Distributable net income
In accordance with Circular No. 1945 from the CMF on November 4,2009, the
Board of Directors agreed that the net distributable income for the year 2009
will be that reflected in the financial statementsattributable to equity
holders of the parents, without adjusting it. The above agreement remains in
effect for the period ended June 30,2023.
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118
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Dividends
The Company's dividends policy consists of annually distributingat least 50%
of the net distributable profit of the year.
As of June 30, 2023 and December 31, 2022 the Company has distributedthe
following dividends:
Dividend N^o Payment Date Type of Dividend Dividends per Share ($) Related to FY
264 04-28-2022 Final 200.0000 2021
265 12-29-2022 Interim 135.1000 2022
266 04-27-2023 Final 24.80181 2022
At the Ordinary Shareholders' Meeting of CompaniaCervecerias Unidas S.A. held
on April 13, 2022, the shareholders approved the distribution of a final
Dividend No. 264 of Ch$ 200per share, for a total amount to be distributed of
ThCh$ 73,900,574 charged against 2021's Net income. This dividend was paid on
April 28, 2022.
At the Board of Directors' Meeting of CompaniaCervecerias Unidas S.A. held on
December 7, 2022, the shareholders approved the distribution of an interim
Dividend No. 265 ofCh$ 135.1 per share, for a total amount to be distributed
of ThCh$ 49,919,383 charged against 2022's Net income. This dividend was paid
on December 29, 2022.
At the Ordinary Shareholders' Meeting of CompaniaCervecerias Unidas S.A. held
on April 12, 2023, the shareholders approved the distribution of a final
Dividend No. 266 of Ch$ 24,80181per share, for a total amount to be
distributed of ThCh$ 9,164,340 charged against 2022's Net income. This
dividend was paid on April 27, 2023.
Consolidated Statement of Comprehensive Income
Comprehensive income and expenses are detailed as follows:
Other Income and expense charged or credited against net equity Gross Balance Tax Net Balance
ThCh$ ThCh$ ThCh$
Gains (losses) on cash flow hedges (1) (6,522,617) 1,761,105 (4,761,512)
Gains (losses) on exchange differences on translation (1) (15,151,136) - (15,151,136)
Gains (losses) from defined benefit plans (1,006,415) 271,732 (734,683)
Total comprehensive income As of June 30, 2023 (22,680,168) 2,032,837 (20,647,331)
Other Income and expense charged or credited against net equity Gross Balance Tax Net Balance
ThCh$ ThCh$ ThCh$
Gains (losses) on cash flow hedges (1) 2,408,067 (650,178) 1,757,889
Gains (losses) on exchange differences on translation (1) 90,467,842 - 90,467,842
Gains (losses) from defined benefit plans (1,286,371) 346,282 (940,089)
Total comprehensive income As of June 30, 2022 91,589,538 (303,896) 91,285,642
(1) These concepts will be reclassified to the Statement of Income when it'ssettled
.
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119
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Reserves affecting other comprehensive income
Themovement of other comprehensive income is detailed as follows:
a) As of June 30, 2023:
Changes Reserve of Reserve of cash Reserve of Actuarial Other reserves Total other
exchange flow hedges gains and reservations
differences on losses on defined
translation benefit plans
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Conversion of (165,258,595) - - 2,711,178 (162,547,417)
joint ventures
and foreign
subsidiaries
Cash flow hedges - (6,522,617) - - (6,522,617)
Gains - - (1,006,415) - (1,006,415)
(losses) from
defined
benefit plans
Income tax - 1,761,105 271,732 - 2,032,837
Inflation 150,269,693 - - (2,873,412) 147,396,281
adjustment of
subsidiaries
in Argentina
Total changes (14,988,902) (4,761,512) (734,683) (162,234) (20,647,331)
in equity
Equity holders (12,896,559) (4,736,387) (688,951) (162,258) (18,484,155)
of the parent
Non-controlling (2,092,343) (25,125) (45,732) 24 (2,163,176)
interests
Total changes (14,988,902) (4,761,512) (734,683) (162,234) (20,647,331)
in equity
b) As of June 30, 2022:
Changes Reserve of exchange Reserve of cash Reserve of Actuarial gains and Total other
differences on translation flow hedges losses on defined benefit plans reservations
Other reserves
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Conversion of joint ventures (7,983,603) - - 683,180 (7,300,423)
and foreign subsidiaries
Cash flow hedges - 2,408,067 - - 2,408,067
Gains (losses) from - - (1,286,371) - (1,286,371)
defined benefit plans
Income tax - (650,178) 346,282 - (303,896)
Inflation adjustment of 100,099,309 - - (2,331,044) 97,768,265
subsidiaries in Argentina
Total changes 92,115,706 1,757,889 (940,089) (1,647,864) 91,285,642
in equity
Equity holders 87,395,821 1,595,253 (892,411) (1,647,782) 86,450,881
of the parent
Non-controlling 4,719,885 162,636 (47,678) (82) 4,834,761
interests
Total changes 92,115,706 1,757,889 (940,089) (1,647,864) 91,285,642
in equity
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120
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
c) As of December 31, 2022:
Changes Reserve of exchange Reserve of cash Reserve of Actuarial gains and Total other
differences on translation flow hedges losses on defined benefit plans reservations
Other reserves
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Conversion of joint ventures (226,312,374) - 2,970,006 (223,342,368)
and foreign subsidiaries
Cash flow hedges - (12,415,374) - - (12,415,374)
Gains (losses) from - - (7,103,125) - (7,103,125)
defined benefit plans
Income tax - 3,352,151 1,981,923 - 5,334,074
Inflation adjustment of 237,327,121 - - (4,038,975) 233,288,146
subsidiaries in Argentina
Total changes 11,014,747 (9,063,223) (5,121,202) (1,068,969) (4,238,647)
in equity
Equity holders 11,706,309 (9,291,567) (4,905,072) (1,068,854) (3,559,184)
of the parent
Non-controlling (691,562) 228,344 (216,130) (115) (679,463)
interests
Total changes 11,014,747 (9,063,223) (5,121,202) (1,068,969) (4,238,647)
in equity
Other Reserves
The reserves that are a part of the Company's equity are asfollows:
Reserve of exchange differences on translation
: This reserveoriginated from the translation of foreign subsidiaries' and
joint ventures financial statements which functional currency is differentfrom
the presentation currency of the Interim Consolidated Financial Statements and
inflation adjustment of subsidiaries in Argentina.As of June 30, 2023,
December 31, 2022 and June 30, 2022, it amounts to a negative reserve of ThCh$
52,935,649, ThCh$ 40,039,090 and ThCh$35,650,422, respectively.
Reserve of cash flow hedges
: These reserves originate fromthe application of hedge accounting for
financial instruments used as hedges. Hedging reserves are reversed at the end
of the term ofthe derivative contracts or when the transaction ceases to
qualify as hedge accounting, whichever occurs first. The effects of the
Hedgingreserves are reflected in to income statement. As of June 30, 2023,
December 31, 2022 and June 30, 2022, the amounts in the balance relatedto
Hedging reserves are negative of ThCh$ 8,917,348, ThCh$ 4,180,961 and ThCh$
6,705,859, net of deferred taxes.
Reserve of Actuarial gains and losses on defined benefit plans:
This reserve is originated from January 1, 2013, as a result of the
application of the Amendment to IAS No. 19 and whose effect as ofJune 30,
2023, December 31, 2022 and June 30, 2022 is a negative reserve of ThCh$
11,040,045, ThCh$ 10,351,094 and ThCh$ 6,338,433 respectively,net of deferred
taxes.
Other reserves
: As of June 30, 2023, December 31, 2022, andJune 30, 2022, the amount is a
negative reserve of ThCh$ 63,012,638, ThCh$ 36,141,326 and ThCh$ 36,822,879,
respectively. Such reserves relate mainly to the following concepts:
- Adjustment due to re-assessment of fixed assets carried out in 1979 respectively (increase of ThCh$ 4,087,396).
- Price level restatement of paid-up capital registered as of December 31, 2008,
according to CMF CircularLetter No. 456 (decrease of ThCh$ 17,615,333).
- Difference in purchase of shares of the subsidiary Vina San Pedro Tarapaca
S.A. made duringyear 2012 and 2013 (increase of ThCh$ 9,779,475).
- Difference in purchase of shares of the subsidiary Manantial S.A. made during year 2016 (decrease of ThCh$7,801,153).
- Difference in purchase of shares of the Alimentos Nutrabien S.A. made during
year 2016 (decrease of ThCh$5,426,209). On December 17, 2018 Food's and
subsidiary CCU Investments S.A. sold their participation over Alimentos
Nutrabien S.A. Theaforementioned effect was accounted in result of the period.
- Difference in purchase of shares of the subsidiary Vina San Pedro Tarapaca S.A. made
duringyear 2018 and 2017 (decrease of ThCh$ 13,054,114 and ThCh$ 2,075,441, respectively).
- Difference in purchase of shares of Saenz Briones and Cia. S.A.I.C. carried
out on April16, July 13 and August 9, 2021 (decrease of ThCh$ 7,199,525).
- Difference in purchase of shares of Vina San Pedro Tarapaca S.A. carried
out on September10 and October 4, 2021 (increase of ThCh$ 245,244).
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121
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
- Difference in purchase of shares of Vina San Pedro Tarapaca S.A. carried out on September7, 2022 (increase of ThCh$ 102,625).
- Difference in purchase of shares of Bebidas del Paraguay S.A. carried out on March 10, 2023 (decreaseof ThCh$ 908,438).
- Difference from issuance of Aguas de Origen S.A. share premium on March 30, 2023 (increase of ThCh$ 148,443).
Note 29 Non-controlling Interests
Non-controlling Interests are detailed as follows:
a. Equity
Equity As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Vina San Pedro Tarapaca S.A. (1) 43,019,078 43,150,504
Bebidas del Paraguay S.A. (2) 15,101,379 20,023,827
Aguas CCU-Nestle Chile S.A. 24,849,748 26,328,210
Cerveceria Kunstmann S.A. 10,241,503 10,326,899
Compania Pisquera de Chile S.A. 8,608,760 8,247,794
Saenz Briones & Cia. S.A.I.C. (4) - 13,000
Distribuidora del Paraguay S.A. (2) 1,873,870 4,285,213
D&D SpA. (3) 1,167,355 -
Bebidas Bolivianas BBO S.A. 7,284,822 6,723,233
Others 1,831,280 1,844,307
Total 113,977,795 120,942,987
(1) See
Note 1 - General information, letterC, number (3).
(2) See
Note 1 - General information, letterC, number (9).
(3) See
Note 1 - General information, letterC, number (11).
(4) See
Note 1 - General information, letterC, number (13).
b. Net income attributable to non-controlling interest
Result For the six-months periods ended as of June 30, For the three-monts periods ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Aguas CCU-Nestle Chile S.A. 3,973,734 3,174,371 1,410,975 634,155
Vina San Pedro Tarapaca S.A. 502,674 2,282,105 435,161 1,341,305
Cerveceria Kunstmann S.A. (79,483) 2,155,125 (510,812) 1,011,467
Compania Pisquera de Chile S.A. 1,867,162 2,206,017 998,215 1,110,884
Saenz Briones & Cia. S.A.I.C. - (1,374) 1,075 (615)
Distribuidora del Paraguay S.A. (594,448) (177,335) (739,657) (264,701)
Bebidas del Paraguay S.A. (435,621) 437,065 (474,860) (78,053)
D&D SpA. 76,768 - 43,729 -
Bebidas Bolivianas BBO S.A. (1,767,827) (1,163,935) (810,925) (692,581)
Others (4,941) 9,822 (8,315) (1,566)
Total 3,538,018 8,921,861 344,586 3,060,295
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122
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
c. The Summarized financial information of non-controlling interest is detailed as follows:
As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Assets and Liabilities
Current assets 1,281,558,064 1,429,689,242
Non-current assets 1,192,478,831 1,209,385,218
Current liabilities 726,157,018 839,988,973
Non-current liabilities 246,401,120 227,512,697
Dividends paid 12,774,960 16,332,005
The main significant non-controlling interest is represented byVina San Pedro
Tarapaca S.A. with the following summarized financial information:
Assets and Liabilities As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Assets and Liabilities
Current assets 216,764,213 212,016,584
Non-current assets 233,195,283 231,348,818
Current liabilities 91,426,351 84,258,450
Non-current liabilities 77,335,133 77,049,859
Result For the six-months periods ended as of June 30, For the three-monts periods ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Net sales 117,016,035 139,623,107 64,369,291 75,617,508
Net income of year 3,285,775 14,738,371 2,844,473 8,662,464
Dividends paid by Vina San Pedro Tarapaca S.A. were ThCh$14,961,639 and ThCh$
17,906,526, on June 30, 2023 and 2022, respectively.
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123
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 30 Nature of cost and
expense
Operational cost and expenses grouped by nature are detailed asfollows:
Costs and expenses by nature For the six-months periods ended as of June 30, For the three-monts periods ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Direct cost 548,333,763 548,642,923 243,869,307 247,397,028
Personnel expense (1) 183,334,401 170,795,397 95,695,635 89,441,460
Transportation and distribution 184,190,946 175,748,134 81,047,456 81,816,632
Advertising and promotion 64,292,366 59,627,062 30,714,595 36,222,483
Depreciation and amortization 65,328,724 63,372,840 34,174,295 34,141,889
Materials and maintenance 39,512,169 36,534,979 20,894,100 19,698,860
Energy 19,587,448 24,399,600 9,734,183 12,673,049
Leases (2) 13,039,690 13,442,183 6,761,396 7,441,607
Other expenses (3) 73,128,737 64,109,675 39,247,165 32,455,096
Total 1,190,748,244 1,156,672,793 562,138,132 561,288,104
(1) See
Note 26 - Employee benefits.
(2) Consists mainly of leases of real estate, machineryand equipment, which do not comply with
Note 2 - Summary of significant accounting policies,(2.13)
.
(3) This mainly includes technicaladvisory services, auditing services, legal and representation expenses, among others.
Note31 Other income by function
Other income by function is detailed as follows:
Other incomes by function For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Sales of fixed assets 267,218 170,677 111,169 44,982
Leases 202,875 244,836 96,481 162,087
Sale of glass and waste 653,857 679,851 310,327 476,117
Insurance claims 133,288 15,445 108,643 1,160
recovery e Indemnities
Others (1) 392,368 817,998 221,354 429,867
Total 1,649,606 1,928,807 847,974 1,114,213
(1) This item includes mainly tour and event services, among others.
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124
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 32 Other Gains (Losses)
Other gains (losses) items are detailed as follows:
Other gains (losses) For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Results derivative (10,449,482) 4,580,892 (2,986,930) 13,558,438
contracts (1)
Marketable securities 29,218 (55,619) 18,949 (41,583)
to fair value
Others 93,917 - 94,430 -
Total (10,326,347) 4,525,273 (2,873,551) 13,516,855
(1) Under this concept there are ThCh$ 9,848,194 paid (net) and ThCh$
11,233,898received (net), as of June 30, 2023,and 2022 respectively,
and these were recorded in the Consolidated Cash Flow Statement,
under Operationalactivities, in line item Other cash movements.
Note 33 Financial results
The financial results composition is detailed as follows:
Financial results For the six-months periods For the three-monts periods
ended as of June 30, ended as of June 30,
2023 2022 2023 2022
ThCh$ ThCh$ ThCh$ ThCh$
Finance income 23,851,952 12,853,463 13,458,819 6,505,170
Finance costs (39,451,799) (29,736,870) (19,000,454) (17,018,053)
Gains (losses) on (11,444,734) (9,836,230) (7,117,365) (11,430,455)
exchange differences
Result as per (5,189,463) (5,072,346) (3,533,385) (1,480,671)
adjustment units
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125
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 34 Effects of changesin currency exchange rate
Current assets are denominated in the following currencies:
CURRENT ASSETS As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Current assets
Cash and cash equivalents 591,015,446 597,081,675
CLP 78,672,345 48,180,152
USD 475,627,499 522,994,678
Euros 2,038,392 555,639
ARS 21,569,792 19,317,028
UYU 1,825,739 1,170,848
PYG 7,826,343 2,681,005
BOB 3,187,874 682,394
Others currencies 267,462 1,499,931
Other financial assets 25,593,234 45,657,992
CLP 590,457 571,051
UF 24,585,290 33,280,356
USD 214,876 2,204,333
Euros 8,926 13,999
PYG 186,836 9,474,224
Others currencies 6,849 114,029
Other non-financial assets 32,012,214 22,037,741
CLP 19,712,767 8,946,880
UF - 1,046,688
USD 313,962 227,457
Euros - 402,194
ARS 11,538,856 10,895,290
UYU 152,437 98,026
PYG 227,340 319,079
BOB 65,247 101,953
Others currencies 1,605 174
Trade and other current receivables 310,599,397 445,263,536
CLP 206,800,129 282,373,941
UF 47,899 46,599
USD 37,823,691 48,418,379
Euros 6,701,085 9,337,050
ARS 41,732,849 82,631,131
UYU 5,226,828 6,786,253
PYG 8,789,243 11,971,053
BOB 2,226,413 1,800,775
Others currencies 1,251,260 1,898,355
Accounts receivable from related parties 5,197,480 6,204,099
CLP 4,120,076 5,798,542
UF - 74,663
USD 14,362 15,333
Euros 253,446 309,593
ARS 809,596 -
PYG - 5,968
Inventories 485,774,694 480,799,534
CLP 401,310,618 388,604,763
ARS 65,575,843 74,033,863
UYU 3,101,177 3,094,200
PYG 12,385,153 11,394,845
BOB 2,648,573 3,240,916
Others currencies 753,330 430,947
Biological assets 1,547,265 16,180,293
CLP 1,176,705 13,592,851
ARS 370,560 2,587,442
Current tax assets 46,188,641 46,707,525
CLP 42,484,872 43,022,629
USD 33,778 25,895
ARS 3,504,434 3,318,140
UYU 165,557 340,861
Non-current assets of disposal groups classified as held for sale 2,003,837 2,016,037
ARS 2,003,837 2,016,037
Total current assets 1,499,932,208 1,661,948,432
CLP 754,867,969 791,090,809
UF 24,633,189 34,448,306
USD 514,028,168 573,886,075
Euros 9,001,849 10,618,475
ARS 147,105,767 194,798,931
UYU 10,471,738 11,490,188
PYG 29,414,915 35,846,174
BOB 8,128,107 5,826,038
Others currencies 2,280,506 3,943,436
Total current assets by currencies 1,499,932,208 1,661,948,432
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126
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Non-Current assets are denominated in the following currencies:
NON-CURRENT ASSETS As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Non-current assets
Other financial assets 37,847,395 37,054,245
UF 37,847,395 37,054,245
Trade and other non-current receivables 3,387,097 3,941,760
CLP 123,306 139,729
UF 2,116,491 2,112,696
USD - 202,582
ARS 1,147,300 1,486,753
Other non-financial assets 12,218,291 12,613,444
CLP 5,372,706 4,284,734
USD 119,328 211,275
ARS 6,695,025 8,077,980
UYU 14,116 21,359
PYG 17,116 18,096
Accounts receivable from related parties 42,506 42,506
CLP 42,506 42,506
Investments accounted for using equity method 142,261,840 140,926,012
CLP 11,454,650 10,581,267
USD 953,300 813,896
ARS 18,453,515 23,691,159
Others currencies 111,400,375 105,839,690
Intangible assets other than goodwill 172,784,478 172,389,672
CLP 97,525,967 95,849,275
ARS 60,152,541 60,684,089
UYU 4,754,648 4,764,986
PYG 4,042,467 4,340,168
BOB 6,308,855 6,751,154
Goodwill 137,517,540 136,969,434
CLP 78,677,520 77,020,101
ARS 39,708,685 39,951,391
UYU 4,837,066 4,815,276
PYG 4,985,082 5,244,087
BOB 9,309,187 9,938,579
Property, plant and equipment (net) 1,352,027,696 1,356,846,302
CLP 984,021,804 981,724,263
USD 14,499 -
ARS 309,819,575 313,564,279
UYU 13,828,142 13,783,515
PYG 20,447,288 22,161,082
BOB 23,896,388 25,613,163
Investment property 10,248,246 10,283,994
CLP 3,315,015 3,329,142
ARS 6,933,231 6,954,852
Right of use assets 38,340,160 34,865,971
CLP 1,893,372 3,022,298
UF 32,046,012 28,240,290
USD 632,722 -
ARS 3,557,215 3,351,227
UYU - 252,156
UI 210,839 -
Deferred tax assets 31,494,121 27,197,207
CLP 29,753,557 25,155,733
USD 1,215,840 1,053,196
ARS 34,179 507,868
UYU 477,895 476,299
Others currencies 12,650 4,111
Total non-current assets 1,938,169,370 1,933,130,547
CLP 1,212,180,403 1,201,149,048
UF 72,009,898 67,407,231
USD 2,935,689 2,280,949
ARS 446,501,266 458,269,598
UYU 23,911,867 24,113,591
PYG 29,491,953 31,763,433
UI 210,839 -
BOB 39,514,430 42,302,896
Others currencies 111,413,025 105,843,801
Total non-current assets by currencies 1,938,169,370 1,933,130,547
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127
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Current liabilities are denominated in the following currencies:
CURRENT LIABILITIES As of June 30, 2023 As of December 31, 2022
Until 90 days More the 91 days until 1 year Until 90 days More the 91 days until 1 year
ThCh$ ThCh$ ThCh$ ThCh$
Current liabilities
Other financial liabilities 38,917,470 81,303,638 51,065,280 134,813,971
CLP 2,994,651 17,649,042 30,799,638 115,566,518
UF 6,851,106 31,298,526 6,938,634 17,071,828
USD 28,956,891 30,449,602 13,162,172 356,489
Euros 2,523 36,728 52,421 45,392
ARS - - 9,622 2,999
BOB 99,701 1,865,933 101,069 1,770,745
Others currencies 12,598 3,807 1,724 -
Current lease liabilities 2,307,952 5,804,525 2,527,052 6,593,564
CLP 129,043 234,571 174,057 182,644
UF 1,667,909 4,310,814 1,872,690 4,729,420
USD 450,079 1,077,859 383,857 1,449,899
Euros - - 28,744 28,744
ARS 31,694 93,600 40,403 120,954
UYU 29,227 87,681 27,301 81,903
Trade and other current payables 349,755,323 2,774,978 489,246,013 2,069,264
CLP 193,632,656 312,581 264,506,307 1,695,576
USD 59,113,313 1,609,122 64,107,427 163,433
Euros 10,441,348 7,696 9,891,227 155,643
ARS 68,385,642 - 131,951,490 -
UYU 2,586,988 - 3,659,296 -
PYG 12,438,267 845,579 10,166,030 54,612
BOB 3,013,188 - 4,781,160 -
Others currencies 143,921 - 183,076 -
Accounts payable to related parties 35,488,377 - 34,282,408 -
CLP 7,275,113 - 8,580,251 -
USD 1,852,218 - 3,028,054 -
Euros 26,107,913 - 22,434,625 -
ARS 201,185 - - -
PYG - - 154,153 -
BOB 9,470 - 860 -
Others currencies 42,478 - 84,465 -
Other current provisions 277,429 2,402,383 253,757 2,402,383
CLP 232,330 2,402,383 189,277 2,402,383
ARS 45,099 - 64,480 -
Current tax liabilities 6,701,558 411,865 8,331,308 732,766
CLP 2,408,398 411,865 7,704,034 732,766
ARS 3,813,917 - 548 -
UYU 241,769 - 375,649 -
PYG 237,474 - 251,077 -
Provisions for employee benefits 11,902,173 21,921,434 28,000,315 15,183,960
CLP 1,713,806 21,921,434 15,193,525 15,183,960
ARS 8,914,965 - 11,460,733 -
UYU 674,318 - 520,823 -
PYG 51,020 - 548,759 -
BOB 548,064 - 276,475 -
Other non-financial liabilities 2,608 33,489,824 758,076 20,892,303
CLP - 32,615,100 - 20,293,201
ARS 2,608 874,724 758,076 599,102
Total current liabilities 445,352,890 148,108,647 614,464,209 182,688,211
CLP 208,385,997 75,546,976 327,147,089 156,057,048
UF 8,519,015 35,609,340 8,811,324 21,801,248
USD 90,372,501 33,136,583 80,681,510 1,969,821
Euros 36,551,784 44,424 32,407,017 229,779
ARS 81,395,110 968,324 144,285,352 723,055
UYU 3,532,302 87,681 4,583,069 81,903
PYG 12,726,761 845,579 11,120,019 54,612
BOB 3,670,423 1,865,933 5,159,564 1,770,745
Others currencies 198,997 3,807 269,265 -
Total current liabilities by currency 445,352,890 148,108,647 614,464,209 182,688,211
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128
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Non-Current liabilities are denominated in the following currencies:
NON-CURRENT LIABILITIES As of June 30, 2023 As of December 31, 2022
Over 1 year to 3 years More than 3 year More than 5 years Over 1 year to 3 years More than 3 year More than 5 years
until 5 years until 5 years
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Non-current
liabilities
Other financial 142,331,338 198,402,183 892,108,685 82,300,140 176,446,792 916,959,767
liabilities
CLP 15,928,438 152,945,558 - 13,219,467 66,973,453 -
UF 122,573,035 40,951,081 410,142,055 66,687,314 105,742,207 402,430,310
USD - - 475,257,380 - - 506,983,975
BOB 3,829,865 4,505,544 6,709,250 2,393,359 3,731,132 7,545,482
Non-current lease 9,794,249 4,767,289 21,071,589 9,122,405 3,144,217 19,039,930
liabilities
CLP 61,178 - - 30,814 - -
UF 8,187,501 4,211,855 20,076,255 7,855,470 2,921,501 18,164,271
USD 1,367,334 555,434 995,334 966,569 203,634 875,659
ARS 70,299 - - 132,171 - -
UYU 107,937 - - 137,381 19,082 -
Trade and other 3,971 3,975 - 17,079 3,866 -
non-current payables
CLP 3,971 3,975 - - - -
UF - - - 17,079 3,866 -
Accounts payable to 323,563 - - - - -
related companies
CLP 323,563 - - - - -
Other non- current - 315,491 45,508 154,408 181,075 44,475
provisions
ARS - 160,566 45,508 - 181,075 44,475
UYU - 154,925 - 154,408 - -
Deferred tax 39,878,455 16,237,344 66,020,558 32,506,320 13,742,576 66,450,932
liabilities
CLP 28,345,862 8,099,621 24,620,404 22,270,362 6,918,604 29,173,594
ARS 11,518,054 8,128,030 38,436,314 10,228,262 6,818,841 34,184,711
UYU - - 905,628 - - 912,841
PYG 14,539 9,693 449,948 7,696 5,131 462,787
BOB - - 1,608,264 - - 1,716,999
Provisions for 796,801 - 41,516,149 813,533 - 41,029,991
employee benefits
CLP - - 38,706,835 - - 38,213,999
ARS - - 2,809,314 - - 2,815,992
BOB 796,801 - - 813,533 - -
Total non-current 193,128,377 219,726,282 1,020,762,489 124,913,885 193,518,526 1,043,525,095
liabilities
CLP 44,663,012 161,049,154 63,327,239 35,520,643 73,892,057 67,387,593
UF 130,760,536 45,162,936 430,218,310 74,559,863 108,667,574 420,594,581
USD 1,367,334 555,434 476,252,714 966,569 203,634 507,859,634
ARS 11,588,353 8,288,596 41,291,136 10,360,433 6,999,916 37,045,178
UYU 107,937 154,925 905,628 291,789 19,082 912,841
PYG 14,539 9,693 449,948 7,696 5,131 462,787
BOB 4,626,666 4,505,544 8,317,514 3,206,892 3,731,132 9,262,481
Total non-current 193,128,377 219,726,282 1,020,762,489 124,913,885 193,518,526 1,043,525,095
liabilities by currency
F-
129
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Note 35 Contingencies andCommitments
Services agreements
The total amount of the Company's obligations with third partiesrelating to
services agreements that cannot be terminated is detailed as follows:
Services agreements not to be terminated As of June 30, 2023 As of December 31, 2022
ThCh$ ThCh$
Within 1 year 83,145,534 89,490,342
Between 1 and 5 years 79,254,131 78,625,851
More than 5 years 5,952,197 5,911,139
Total 168,351,862 174,027,332
Purchase and supply agreements
The total amount of the Company's obligations to third partiesrelating to
purchase and supply agreements as of June 30, 2023 is detailed as follows:
Purchase and supply agreements Purchase and supply agreements Purchase and contract related to wine and grape
ThCh$ ThCh$
Within 1 year 376,273,835 10,402,667
Between 1 and 5 years 1,015,271,408 12,775,595
More than 5 years 39,578,387 -
Total 1,431,123,630 23,178,262
Capital investment commitments
As of June 30, 2023 the Company had capital investment commitmentsrelated to
Property, Plant and Equipment and Intangibles (software) for approximately
ThCh$ 78,863,644.
Litigation
The following are the most significant proceedings faced by theCompany and its
subsidiaries in Chile and abroad, including all those present a possible risk
of occurrence and causes whose committedamounts, individually, are more than
ThCh$ 25,000 in the case of chilean companies and USD 15,000 for cases of
foreign subsidiaries. Those losses contingencies for which anestimate cannot
be made have been also considered.
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130
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
Trials and claim
Company Court Description Status Estimated accrued
loss contingency
Cervecera CCU Chile Ltda. Court of Appeal Invoice collection Appeal of sentence ThCh$ 35,700
Transportes CCU Ltda. Court of Appeal Invoice collection Appeal of sentence ThCh$ 30,457
Transportes CCU Ltda. Court of Appeal Compensation for damages Appeal of sentence ThCh$ 72,000
Vina San Pedro Court of Appeal Compensation for damages Appeal of sentence ThCh$ 45,000
Tarapaca S.A.
Compania Industrial Administrative Courts Administrative claims of Proceeding in USD 56,000 (ThCh$ 44,893)
Cervecera S.A. several municipalities administrative
for advertising and or judicial stage
publicity fees
The Company and its subsidiaries have established provisions toallow for such
contingencies for ThCh$ 500,934 and ThCh$ 496,302 as of June 30, 2023 and
December 31, 2022, respectively (See
Note 24 - Other provisions
).
Tax processes
At the date of issue of these interim consolidated financial statements,there
is no tax litigation that involves significant passive or taxes in claim
different to mentioned in
Note25 - Income Tax
.
Guarantees
As of June 30, 2023, CCU and its subsidiaries have not granted directguarantees
as part of their usual financing operations. However, indirect guarantees have
been constituted, in the form of stand-by andgeneral security product of
financing. The main terms of the indirect guarantees constituted are detailed
below:
- The joint venture Central Cervecera de Colombia S.A.S. (CCC) maintains financial debt
with local banksin Colombia, guaranteed by the subsidiary CCU Investments II SpA.
through stand-by letters issued by Scotiabank Chile and they are withinthe financing
policy framework approved by Board of Directors, according to the following detail:
Institution Amount Due date
Banco Colpatria US$ 27,200,000 June 24, 2024
Banco Colpatria US$ 4,000,000 July 19, 2024
Banco Colpatria US$ 13,500,000 August 31, 2024
Banco Colpatria US$ 4,289,340 September 6, 2023
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131
Compania Cervecerias Unidas S.A. and subsidiaries
Notes to the Interim Consolidated Financial Statements (Unaudited)
June 30, 2023
- The indirect associate Bodega San Isidro S.R.L. maintains financial debt with
local bank in Peru, whichis endorsed by the subsidiary Compania Pisquera de Chile
S.A. through a stand-by letter issued by the Banco del Estado deChile, this is
within the financing policy approved by the Board, and is detailed as follow:
Institution Amount Due date
Banco Credito de Peru USD 2,600,000 December 21, 2023
- Additionally, the Company presents the following guarantees:
a) Through private instrument dated May 20, 2021, the Company undertakes to maintain
a direct or indirectshareholding that allows it to control its Uruguayan
subsidiary Milotur S.A., until whichever happens first of: (i) a period of 3
yearsfrom the date of the aforementioned document or (ii) the fulfillment by
Milotur S.A. of all its obligations under the credit agreementor agreements
that have been signed by it with Citigroup Inc., or one of its agencies,
subsidiaries or related companies, for a totalamount of up to UYU 30,000,000
(Uruguayan pesos) and up to USD 1,000,000 in its equivalent in other currencies.
b) The Company, through a private notarized document dated July 28, 2017, is required to maintain a
director indirect participation of at least 50.1% of its subsidiary Compania Pisquera de Chile
S.A., allowing the Company to controlits subsidiary during the period of validity of the bank
loan with Banco del Estado de Chile for a total of ThCh$ 16,000,000, maturing on July 27, 2027.
Note 36 Subsequent Events
a) The Interim Consolidated Financial Statements of CCU S.A. and subsidiaries as
of June 30, 2023 have beenapproved by the Board of Directors on August 9, 2023.
b) There are no others subsequent events between the closing date and the filing date of
these Interim FinancialStatements that could significantly affect their interpretation.
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132
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Compania Cervecerias Unidas S.A.
(United Breweries Company, Inc.)
/s/ Felipe Dubernet
Chief Financial Officer
Date: August 10, 2023
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