The Group achieved Revenues of S/. 2,847.3 MM during 2Q2017, a 1.7% increase compared to 2Q2016.

Transcription

1 Consolidated Results Report 2Q2017 July 24, 2017

2 Executive Summary The Group achieved Revenues of S/. 2,847.3 MM during 2Q2017, a 1.7% increase compared to 2Q2016. Gross Profit amounted to S/ MM in 2Q2017, increasing 17.4% compared to 2Q2016. EBITDA was S/ MM in 2Q2017, 48.9% higher than the result obtained in 2Q2016. Net Income reached S/ MM in 2Q2017, 41.7% higher than in 2Q2016. Backlog amounted to US$ 2,601.9 MM and the recurrent businesses amounted to US$ MM, reaching a total of US$ 3,197.4 MM, equivalent to 1.63x the annual revenues. In April 2017, the Group made the decision to move Concar from the Technical Services Area to the Infrastructure Area. Therefore, as of April 2017, the reported information will be as described above. For purposes of comparison, this Consolidated Results Report includes a comparative pro forma analysis of the Infrastructure Area for the year 2016 including Concar. CONSOLIDATED QUARTERLY REVENUES (S/. MM) CONSOLIDATED QUARTERLY EBITDA (S/. MM) CONSOLIDATED QUARTERLY NET INCOME (S/. MM) 1,366 1,439 2,255 1,418 1, Q 16 3Q 16 4Q 16 1Q 17 2Q Q 16 3Q 16 4Q 16 1Q 17 2Q17 2Q 16 3Q 16 4Q 16 1Q 17 2Q The graphs above, show the Revenues, EBITDA and Net Income by quarter since the Second Quarter of REVENUES BY SEGMENT EBITDA BY SEGMENT NET INCOME BY SEGMENT Engineering & Construction 51% Technical Services 21% Infrastructure 18% Infrastructure 28% 39% Infrastructure 25% 36% 11% Technical Services 7% Engineering & Construction 26% Engineering & Construction 43% Note: The Consolidated Results Report presents the accumulated figures as of 2Q2016 and 2Q2017. References made to 2Q2016, 2Q2017 and Second Quarter are made to the period of three months from January 2 to June 30 of the corresponding year. Page 2

3 Consolidated Results Revenues. Revenues increased 1.7% mainly explained by higher revenues in the Technical Services area due to the consolidation of Adexus, and also due to an increase in the area explained by the sale of Cuartel San Martin for US$ 50.0 MM in 1Q2017, as well as by the greater number of units delivered in 2Q2017 (537 units versus 236 units delivered in 2Q2016), as well as by the increase in sales of the Services area. On the other hand, the lower revenues registered in the Engineering and Construction Area are explained by the fewer works under execution in GyM, Vial y Vives - DSD and Morelco, as well as lower sales in Stracon GyM. Moreover, in the Infrastructure area, revenues reduced 6.7% compared to 2Q2016, mainly due to lower sales in Norvial, La Chira and Concar. Gross Profit. Consolidated gross profit increases 17.4%, and the margin increases from 11.0% to 12.6% in 2Q2017. This results are mainly explained by the higher margins in the Engineering and Construction and Infrastructure area, as well as by the sale of land of Cuartel San Martín. Operating Profit. Administrative expenses for 2Q2017 increased by 2.9% compared to 2Q2016, explained by the incorporation of Adexus as of August 2016 and partially offset by the reduction of general expenses of the Engineering and Construction área. The Other Operational Expenses line reflects a S/. 1.3 MM profit compared to S/ MM in 2Q2016, due to the sale of equipment in the Engineering and Construction area. In addition, the profit from sale of investments line of 2Q2017 reflects the profit from the sale of assets, which includes the participation of Red Eagle, Prinsur, GMD and Coga, while in 2Q2016 the sale of our interest in TGP. Therefore, the operating profit goes from S/ MM to 2Q2016 to S/ MM to 2Q2017, with margins of 5.8% and 10.3%, respectively. Financial Expenses. The increase in financial expenses is mainly explained by the increase in debt due to the financial commitments derived from the termination of GSP. The Participation in Associates line mainly reflects the profit generated by minority investments such as Chavimochic, while in 2Q2016, it reflected the profits generated from the GSP project (written off as of December 2016) as well as the profit from Chavimochic, COGA and Adexus. Net income. Consolidated net income was S/ MM, 41.7% higher than in 2Q2016. The net margin increased from 3.7% in 2Q2016 to 5.2% in 2Q2017. EBITDA. Consolidated EBITDA increased 48.9% compared to 2Q2016, explained by the results explained above. Further details on the variations in figures is described in each of the business areas shown next. Financial Results 1Q16 1Q17 Var % (Thousands S/.) Revenues 2,799,110 2,847, % GROSS PROFIT 306, , % General Expenses (187,194) (192,716) 2.9% Other Operational Expenses 14,921 1, % Other Expenses (182) % Profit from sale of investments in subsidiaries 28, , % OPERATIONAL INCOME 162, , % Financial Expenses (51,626) (84,063) 62.8% Participation in Associates 30,987 13, % Exchange rate difference 18,810 16, % PRETAX INCOME 160, , % Taxes (38,492) (63,128) 64.0% Minority Interests (17,097) (26,524) 55.1% NET INCOME 104, , % EBITDA 329, , % Adjusted EBITDA 372, , % Financial Ratios 1Q16 1Q17 Gross Margin 11.0% 12.6% Operating Margin 5.8% 10.3% Net Margin 3.7% 5.2% EBITDA Margin 13.3% 19.5% Financial Debt 2,721,228 2,776,716 Financial Debt / EBITDA ROE 5.7% 0.7% Balance Sheet (Thousands S/.) Stable Cash Flows. Regarding stable long term cash flows, during 2Q2017, 47.7% of the consolidated EBITDA was originated from Stable Cash Flows businesses. The EBITDA generated from these businesses allows us to cover the Interest Expenses and General Expenses of the company businesses that not generate cash flows in 1.2x. 1Q16 1Q17 Current Assets 4,910,697 3,932,052 Non Current Assets 3,994,047 4,098,118 Total Assets 8,904,744 8,030,170 Current Liabilities 3,662,474 3,302,038 Non Current Liabilities 2,020,983 2,264,381 Total Liabilities 5,683,457 5,566,419 Equity 2,679,081 2,676,927 Minority Interests 542, ,146 Total Equity 3,221,287 3,184,073 Total Liabilities and Equity 8,904,745 8,750,492 Page 3

4 Consolidated Results Backlog. Consolidated Backlog (US$ 2,601.9 MM) plus Recurrent Businesses (US$ MM) amounts a Total Backlog of US$ 3,197.4 MM, which represents a ratio of Backlog + Recurrent businesses of 1.63 years. 5,000 Consolidated Backlog (US$ MM) 4,648 4,755 3,830 3,532 3, From the total Backlog registered in 2Q2017, US$ MM will be executed during 2017, US$ MM in 2018, and US$ 1,022.6 MM in 2019 and the following years. From the recurrent businesses, US$ 88.1 MM will be executed during 2017, US$ MM in 2018 and the remaining in 2019 and the following years. The recurrent businesses are the Oil and Gas segment and the Norvial toll road. 4,000 3, , , , , , For further details on the backlog, please go to the appendix page. 2, , Q16 3Q16 4Q16 1Q17 2Q17 Backlog Recurrent Bussinesses Backlog + Recurrent Businesses/ Revenues Ratio 1.00 Backlog by Business Segment 2Q2016 vs. 2Q2017 Backlog by Sector 2Q2016 vs. 2Q2017 3% Infrastructure 16% Technical Services 17% Engineering & Construction 64% Technical Services 13% 2% Engineering & Construction 49% 10% Transport 16% Others 2% Mining Projects 1% Mining Services 21% Transport 26% Others 2% Mining Projects 3% Mining Services 23% Infrastructure 36% Water and Sewage 3% Electricity 10% Oil and Gas 37% 9% Water and Sewage 0.3% Electricity 12% Oil and Gas 25% Backlog by Type of Client 2Q2016 vs. 2Q2017 Backlog by Geography 2Q2016 vs. 2Q2017 Concessions 15% Concessions 27% Chile 5% Others (Panamá, Bolivia, etc.) 2% Colombia 12% Others (Panamá, Bolivia, etc) 1% Public 11% Colombia 12% Chile 9% Private 74% Public 11% Private 62% Peru 80% Peru 77% Capital Expenditures. Capital Expenditures (CAPEX) in 2Q2017 amounted to S/ MM (US$ 30.9 MM) which is explained by the investments in the Infrastructure Area, mainly in GMP. On the other hand, the divestitures totaled S/ MM (US$ 47.3 MM) explained by the sale of Red Eagle, Prinsur, COGA and GMD. Page 4

5 Composition of Indebtedness Consolidated Financial Debt for 2Q2017 amounted to US$ MM, plus the debt from the performance guarantee with Chubb, reaches a total of US$ MM. From the total debt, US$ MM correspond to working capital, associated to the clients accounts receivables and leasing's for the acquisition of machinery and equipment, US$ MM correspond to Infrastructure Project finance and US$ MM correspond to financing the equity contributions of the Southern Gas Pipepline (GSP), the proportional part of the GSP bridge loan and US$ 21.7 MM resulting from the execution of the Performance Guarantee. It is important to mention that the debt in the Infrastructure Area is a non-recourse debt, with guarantees and cash flows from the project itself. DEBT (US$ thousands) 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 Working Capital + Leasing 427, , , , , ,055 Project Finance 321, , , , , ,414 Financing associated to GSP 115, , , , , ,593 Total 864, , , , , ,062 CHUBB Debt 52,500 52,500 21,679 Total Debt 864, , ,753 1,048,981 1,031, ,741 EBITDA (US$ thousands) - LTM 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 E&C + + Technical Services 141, , , , , ,041 Infrastructure 91,556 82,567 82,291 80,872 84,882 95,187 Total 232, , , , , ,228 RATIOS 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 Debt/Ebitda (E&C + + Technical Services) Debt/Ebitda (Infrastructure) Consolidated Debt/Ebitda Maturity of Financial Debt Debt by Currency Less than Between 1 Between 2 More than 1 year and 2 years and 5 years 5 years Total Other loans 1,010, , ,218 1,658,129 Leasing 79,178 49,102 30,352 1, ,193 Chilean peso 6% Colombian peso 2% Sol 50% Ferrovías & Norvial Bond Issue 43,392 32,861 80, , ,394 Total 1,133, , , ,704 2,776,716 CHUBB Debt 70,564 70,564 Total debt S/. 1,204, , , ,704 2,847,280 Dollars 42% Total debt US$ 369, ,933 85, , ,741 Page 5

6 Engineering and Construction The Engineering & Construction Area registered a decrease of 18.0% in 2Q2017, compared to the amount reported in 2Q2016, mainly due the fewer projects under execution in GyM, Vial y Vives-DSD and Morelco, as well as to lower revenues in Stracon GyM. Gross Profit decreased 7.7% in 2Q2017, while the margin increased from 7.7% to 8.7%, which reflects more stability in margins. The other operational expenses line in 2Q2017 reflects the profit from the sale of machinery and equipment. The profit from sale of investments line reflects the profit for the sale of the 8.69% participation in Red Eagle, through our subsidiary STRACON GyM. The decrease in financial expenses is a consequence of the reduction of the debt in 2Q2017. Moreover, the Engineering and Construction Area registers the profit for the minority participation of GyM in Viva GyM in the line Participation in Associates, the increase in 2Q2017 is explained by the profit generated by the sale of assets in Viva GyM. The exchange rate appreciation from S/ in December 2016 to S/ in June 2017, has generated a profit of S/.6.8 MM in 2Q2017. The net income of the area was S/ MM in 2Q2017, which represents a Net Margin of 4.3%, higher than the one registered in 2Q2016. EBITDA was S/ MM in 2Q2017, reaching a margin of 9.8%, higher than the 5.6% registered in 2Q2016, explained by the operational results described above. Capital Expenditures. Capital expenditures (CAPEX) for 2Q2017 amounted to S/. 3.7 MM (US$ 1.1 MM), corresponding to the reposition of machinery for construction. Financial Results 2Q16 2Q17 Var % (Thousands S/.) Revenues 1,851,246 1,518, % GROSS PROFIT 142, , % General Expenses (124,507) (103,058) -17.2% Other Operational Expenses 13,135 3, % Other Expenses % Profit from sale of investments in subsidiaries - 25, % OPERATIONAL INCOME 31,157 57, % Financial Expenses (22,226) (20,105) -9.5% Participation in Associates 8,814 33, % Exchange rate difference 6,524 6, % PRETAX INCOME 24,269 78, % Taxes (9,585) (10,383) 8.3% Minority Interests 3,415 (2,348) % NET INCOME 18,099 65, % EBITDA 104, , % Adjusted EBITDA Financial Ratios 2Q16 2Q17 Gross Margin 7.7% 8.7% Operating Margin 1.7% 3.8% Net Margin 1.0% 4.3% EBITDA Margin 5.6% 9.8% Financial Debt 895, ,741 Financial Debt / EBITDA ROE -8.7% 7.3% Revenues (Million of S/.) 57 EBITDA (Million of S/.) 5 Net Income (Million of S/.) ,794 1,437 GMI GyM GMI GYM 1 63 GMI GYM 17 Backlog. The Engineering and Construction segment reported a Backlog of US$ 1,623.1 MM, 18% lower compared to 4T2016. The main contracts awarded during the first semester: Assembly of Structures for Wet Areas Toquepala Project, Intursa Hotel and Puruchuco Mall. The total Backlog will be executed as follows: US$ MM in 2017, US$ MM in 2018 and US$ MM in the following years. Backlog (Million of US$) Backlog by Type of Contract 3,062 3,081 Unit Prices 19% 1,978 1,750 1,623 Lump Sum 19% Cost plus Fee 48% Page 6 2Q16 3Q16 4Q16 1Q17 2Q17 EPC 14%

7 Infrastructure The Infrastructure Area s revenues decreased 6.7% compared to the revenues in 2Q2016. While revenues at Norvial reduced due to lower levels of works under execution compared to the previous year, and Concar s revenues decreased due to the completion of some projects during 2Q2016, these reductions are partially offset by higher revenues in GMP. The increase in revenues in GMP is explained by the rise in oil price, going from an average price per barrel of US$ in 2Q2016 to US$ per barrel in 2Q2017, as well as by an increase in the level of daily production of barrels, which increased from 2,764 BPD in 2Q2016 to 3,181 BPD in 2Q2017. In addition to this, GLP and HAS prices increased. The price of GLP increased from US$ per barrel in 2Q2016 to US$ per barrel in 2Q2017, while the price of HAS (CGN) increased from US$ per barrel in 2Q2016 to US$ per barrel in 2Q2017. Nonetheless, the processing levels at the Pariñas Gas Plant decreased from an average of 31.9 MMCF (million cubic feet) in 2Q2016 to MMCF in 2Q2017. The Gross Profit of the area remained at the same levels compared to the same period of the previous year. Financial expenses in 2Q2017 were 19.6% higher than those reported in 2Q2016, basically due to the increase in Norvial's debt. The impact in exchange differences was negative by S/. 0.5 MM compared to 2Q2016. Net Income reached S/ MM, reflecting a decrease of 1.5% compared to 2Q2016, explained by the results described above, reaching a Net Margin of 7.1% higher than the one reported in 2Q2016. Adjusted EBITDA for 2Q2017 reached S/ MM, representing an EBITDA margin of 29.8%, which was higher than the margin registered in 2Q2016. Financial Results 2Q16 2Q17 Var % (Thousands S/.) Revenues 579, , % GROSS PROFIT 108, , % General Expenses (29,914) (30,910) 3.3% Other Operational Expenses (332) % Other Expenses (203) % Profit from sale of investments in subsidiaries % OPERATIONAL INCOME 78,365 78, % Financial Expenses (5,472) (6,543) 19.6% Participation in Associates 1, % Exchange rate difference 1,183 (495) % PRETAX INCOME 75,272 72, % Taxes (22,393) (21,350) -4.7% Minority Interests (13,857) (12,789) -7.7% NET INCOME 39,022 38, % EBITDA 124, , % Adjusted EBITDA 141, , % Financial Ratios 2Q16 2Q17 Gross Margin 18.8% 20.2% Operating Margin 13.5% 14.6% Net Margin 6.7% 7.1% EBITDA Margin 24.5% 29.8% Financial Debt 1,069,341 1,095,560 Financial Debt / EBITDA ROE 17.3% 10.9% * For comparison purposes, figures for 2Q2016 in the Infrastructure area include Concar. Revenues (Million of S/.) EBITDA (Million of S/.) Net Income (Million of S/.) Concar CVSUR GyM Ferrovías La Chira Canchaque Survial Norvial GMP Concar CVSUR GyM Ferrovías La Chira Canchaque Survial Norvial GMP Concar CVSUR GyM Ferrovías La Chira Canchaque Survial Norvial GMP Capital Expenditures. Capital expenditures (CAPEX) for 2Q2017 amounted to a S/ MM (US$ 24.7 MM) corresponding mainly to the investments made in Blocks III and IV from GMP. Backlog. The Infrastructure Area reported a Backlog of US$ MM, and a total of US$ MM of recurrent businesses. Backlog (Million of US$) The total Backlog of the Infrastructure Segment will be executed as follows: US$ MM in 2017, US$ MM in 2018 and US$ MM in the following years. On the other hand, the recurrent businesses will be executed as follows: US$ 88.1 MM in 2017, US$ MM in 2018 and the remaining amount from 2019 onwards Q16 3Q16 4Q16 1Q17 2Q17 Page 7 Backlog Recurrent Businesses

8 Revenues in the Area increased by 215.2%, mainly due to the sale of Cuartel San Martín in February this year, and on the other hand, by the greater number of units delivered, from 236 units in 2Q2016 to 537 units in 2Q2017. Gross Profit increased by the sale of Cuartel San Martin, and the gross margin increased from 30.3% in 2Q2016 to 35.3% in 2Q2017. The income from the sale of investments reflects the sale of Prinsur. There are a total of 22 projects under development, within which the main ones in housing segment are: Parques del Callao, Parque Comas, Parques de Huancayo and a building named Klimt in San Isidro. In the office segment, Real 2 offices, located in the Business Center of San Isidro is under development. A total of 82% of the projects are been executed in Lima, whilst 18% of them are been executed in other provinces of Peru. Net Income increased compared to 2016, closing 2Q2017 in S/ MM. EBITDA was S/ MM in 2Q2017, with an increase in the margin from 54.5% to 69.5%, explained by the operating results described above. Financial Results 2Q16 2Q17 Var % (Thousands S/.) Revenues 100, , % GROSS PROFIT 30, , % General Expenses (10,040) (8,003) -20.3% Other Operational Expenses 351 (2,586) % Other Expenses % Profit from sale of investments in subsidiaries - 47, % OPERATIONAL INCOME 20, , % Financial Expenses (5,814) (7,730) 33.0% Participation in Associates (372) % Exchange rate difference 134 (3,337) % PRETAX INCOME 14, , % Taxes (3,639) (38,069) 946.2% Minority Interests (7,950) (44,509) 459.9% NET INCOME 3,204 55, % EBITDA 23, , % Adjusted EBITDA 54, , % Financial Ratios 2Q16 2Q17 Gross Margin 30.3% 35.3% Operating Margin 20.7% 46.9% Net Margin 3.2% 17.5% EBITDA Margin 54.5% 69.5% Financial Debt 220, ,522 Financial Debt / EBITDA ROE 6.3% 33.2% Revenues (Million of S/.) EBITDA (Million of S/.) Net Income (Million of S/.) Q16 3Q16 4Q16 1Q17 2Q17 Delivered Housing Units Sold Housing Units Backlog. The Segment reported a Backlog of US$ 80.5 MM. The main projects included in the Backlog are: Klimt building in San Isidro, Parque Comas, Parques del Callao, Real 2 Offices, among others. The total Backlog of the Segment will be executed as follows: US$ 67.6 MM in 2017, US$ 10.4 MM in 2018 and the rest in the remaining years. Backlog (Million of US$) Q16 3Q16 4Q16 1Q17 2Q17 Page 8

9 Technical Services Revenues for the Technical Services Segment in 2Q2017 were S/ MM which is higher by 36.3% than the ones registered in 2016, mainly explained by a higher volume of operations in CAM as a result of the contracts won during 2016, as well as by the consolidation of Adexus since August The area includes GMD results until the day of sale at the beginning of June. Gross Profit increased by 15.4% with respect to 2Q2016, nonetheless the Gross Margin reduced from 12.2% to 10.3% explained by lower margins in GMD and CAM. The general expenses of the area increased by 52.3%, mainly explained by the consolidation of Adexus and to a lesser extent by CAM. Operating Income decreased from S/ MM to S/. 6.5 MM reaching a margin of 1.0%, lower than reported in 2Q2016, explained by the lower operating results of Adexus and CAM. The financial expenses reported in the period to 2Q2017 include the increase of debt for the consolidation of Adexus. The line "Participation in Associates" registers the income generated in projects in which CAM has a minority stake and therefore does not consolidate it. The difference impact in exchange reflects a profit of S /. 0.9 MM, lower than 2T2016. A Net loss of S/.7.1 MM was registered for 2Q2017, unlike the profit obtained in 2Q2016 of S/. 5.4 MM. EBITDA in 2Q2017 was S/ MM, with an EBITDA Margin of 6.7%. Financial Results 2Q16 2Q17 Var % (Thousands S/.) Revenues 458, , % GROSS PROFIT 55,817 64, % General Expenses (38,034) (57,944) 52.3% Other Operational Expenses 2, % Other Expenses % Profit from sale of investments in subsidiaries % OPERATIONAL INCOME 19,930 6, % Financial Expenses (10,073) (17,590) 74.6% Participation in Associates % Exchange rate difference 1, % PRETAX INCOME 11,842 (10,006) % Taxes (5,161) 1, % Minority Interests (1,309) 1, % NET INCOME 5,372 (7,135) % EBITDA 40,900 41, % Adjusted EBITDA Financial Ratios 2Q16 2Q17 Gross Margin 12.2% 10.3% Operating Margin 4.4% 1.0% Net Margin 1.2% -1.1% EBITDA Margin 8.9% 6.7% Financial Debt 152, ,847 Financial Debt / EBITDA ROE 29.2% -0.7% * For comparison purposes, figures for 2Q2016 in the Technical Services area do not include Concar. Revenues (Million of S/.) EBITDA (Million of S/.) Net Income (Million of S/.) CAM Adexus CAM Adexus CAM Adexus GMD GMD -5 GMD Capital Expenditures. Capital Expenditures (CAPEX) in 2Q2017 amounted to S/ MM (US$ 6.3MM), which mainly corresponds to the electric services and information technology businesses. Backlog. The Technical Segment reported a Backlog of US$ MM. The total Backlog of the Technical Services Segment will be executed as follows: US$ MM in 2017, US$ MM in 2018 and the remaining in the following years. The main contracts awarded during the first semester of 2017 were ENAP through Adexus in Chile, EMP in Colombia through CAM, the extension of the Cerro de Pasco contract and the maintenance of roads at the Ayacucho airport through Concar. Backlog (Million of US$) Page 9 2Q16 3Q16 4Q16 1Q17 2Q17

10 Appendix: Profits & Losses Statement per Company Figures in Thousands of S/. Financial Results (Thousands of S/.) Engineering & Construction GYM GMI GMP NORVIAL SURVIAL Infrastructure CONCAR Revenues 1,436,693 82, ,272 69,013 15, ,331 4,385 7, ,187 1, , , , ,951 GROSS PROFIT 120,588 11,022 32,879 36,586 (562) 13,682 1, , ,107 16,672 16,384 31,361 General Expenses (95,119) (7,939) (8,206) (2,364) (1,291) (11,452) (911) (121) (6,359) (206) (8,003) (10,687) (18,022) (29,236) Other Operational Expenses 3, (2,586) 120 (4) (109) Profit from sale of investment 25, , OPERATIONAL INCOME 54,299 3,349 24,963 34,428 (1,853) 2,479 1, ,022 (111) 148,633 6,105 (1,642) 2,016 Financial Expenses (19,785) (320) (6,031) (1,279) (66) (7) 322 (1) (7,730) (3,432) (5,009) (9,167) Participation in Associates 33, Exchange rate difference 6, ,981 (77) (927) 162 (197) (713) (724) 1 (3,337) PRETAX INCOME 74,866 3,135 21,790 33,072 (2,588) 2, ,620 (111) 138,020 3,488 (6,612) (6,900) Taxes (9,257) (1,126) (6,879) (8,624) 701 (1,119) (223) (17) (5,114) (75) (38,069) (1,171) 1, Minority Interests (2,133) (215) (1,846) (8,068) 0 1 (0) (0) (2,877) - (44,509) (266) 448 1,320 NET INCOME 63,476 1,794 13,065 16,380 (1,887) 1, ,630 (186) 55,443 2,051 (4,542) (4,643) CANCH CVSUR GYM FERROVIAS LA CHIRA Viva GyM GMD Technical Services ADEXUS CAM Amortization 3, ,032 5, ,815 3,642 3,247 Depreciation 51, , , ,667 8,361 6,991 8,808 EBITDA 143,682 4,595 67,103 39,843 (1,770) 6,008 1, ,072 (108) 151,814 18,281 8,991 14,319 ADJUSTED EBITDA - 47, ,627 Appendix: Balance Sheet per Company Figures in Thousands of S/. Engineering & Construction Infrastructure Technical Services GYM Balance Sheet GYM GMI GMP NORVIAL SURVIAL CONCAR CANCH CVSUR LA CHIRA Viva GyM ADEXUS CAM FERROVIAS Cash and Cash Equivalents 171,641 5,570 12,077 76,630 21,607 37,401 3, ,067 2,562 71,804 6,454 25,078 Other Current Assets 1,640,865 61, ,483 23,176 43, ,658 3,002 1, ,306 11, , , ,365 Current Assets 1,812,506 67, ,560 99,806 65, ,059 6,836 1, ,373 13,562 1,055, , ,443 Non Current Assets 1,119,338 14, , ,257 3,292 48, , ,954 10,542 89, , ,371 Total Assets 3,187,742 82, , ,063 68, ,444 6,978 62,699 1,153,327 24,103 1,144, , ,814 - Borrowings 581, , , ,503 54,796 87,536 Other Current Liabilities 1,240,503 44,480 86,709 54,838 31,388 82, ,958 84, ,980 82, ,605 Current Liabilities 1,821,785 44, ,216 54,838 31,388 84, ,958 84, , , ,141 Borrowings 161, , , ,018 16,813 17,702 Other Non Current Liabilities 195, , , , ,634 23,834 32,057 27,512 51,181 Non Current Liabilities 357, , ,872-51, ,634 23,834 48,075 44,324 68,883 Total Liabilities 2,435,437 45, , ,710 31, ,922 1,457 7,958 1,013,794 24, , , ,024 Equity attributable to controlling interest in the Company 640,664 33, , ,237 37,445 64,515 5,519 54, , ,085 32,066 61,438 Non-controlling Interest 111,641 3,923 22,183 66, , ,332 3,160 28,352 Total Equity 752,305 37, , ,353 37,449 64,522 5,521 54, , ,417 35,226 89,790 Total Liabilities and Equity 3,187,743 82, , ,063 68, ,444 6,978 62,699 1,153,327 24,103 1,144, , ,814 Page 10

11 Appendix: Backlog Report to 2Q2017 Figures in Thousands of US$ Company Initial Backlog Executed New Requests Annual Backlog Backlog Total Backlog TOTAL 1Q Q GyM 854, ,719-19,394-83,673 64, , , , ,785 STRACON GYM 820, ,714 64,030 29,100 34, , , , ,991 VyV-DSD 45,673 34,225 3, ,691 14,991 14, MORELCO 199,871 33,413-8,363 10,964-19, ,094 33,025 82,267 42,802 CAM PERU 496 3,818 3,322 2, GMI 57,338 25,237 20,185 6,479 13,706 52,286 20,060 25,726 6,500 ENGINEERING & CONSTRUCTION 1,977, ,127 63,322-33,838 97,160 1,623, , , ,078 SURVIAL 40,819 4,637 9,122-12,140 21,262 45,304 22,449 8,924 13,931 CANCHAQUE 16,317 1,347 1,719-6,905 8,624 16,689 9,134 2,988 4,566 LA CHIRA 2, , , ,540 LINEA 1 METRO DE LIMA 240,696 36,617 57,996 36,838 21, ,075 32,349 79, ,466 CONCAR 218,243 35,739 53,840 15,126 38, ,344 80,580 60,517 95,247 INFRASTRUCTURE 518,960 78, ,258 34,344 88, , , , ,750 VIVA GYM 95,852 97,458 82,112 55,578 26,534 80,505 67,639 10,396 2,470 REAL ESTATE 95,852 97,458 82,112 55,578 26,534 80,505 67,639 10,396 2,470 GMD 125,732 36,607-89,125 20, , ADEXUS 72,604 36,934 47,398 31,274 16,124 83,067 30,645 23,974 28,448 CAM 441, ,265 39,412 63,318-23, , , , ,177 TECHNICAL SERVICES 639, ,805-2, , , , , , ,626 Eliminations -94,878-22,013-37,715-10,151-27, ,579-29,293-32,950-48,337 TOTAL 3,137, , , ,316 67,345 2,601, , ,204 1,022,586 Appendix: Recurrent Businesses Report to 2Q2017 Figures in Thousands of US$ Company Initial Executed New Requests Annual Total TOTAL 1Q Q GMP 474,490 63,678 70,833 70, ,645 68, , ,302 NORVIAL 243,627 21,202-83,681-97,739 14, ,744 21,835 44,722 72,187 Eliminations -25,313 25,700 26,170 3,737 22,433-24,843-2,195-8,963-13,684 TOTAL 692, ,580 13,323-23,259 36, ,546 88, , ,804 TOTAL 3,830, , , , ,927 3,197, , ,896 1,338,391 Page 11

12 Appendix: Corporate Structure 89.41% 67.00% 99.54% (1) 73.16% Engineering services Toll-road concession development Electricity networks services Construction services 98.24% Toll-road concession 99.99% Land parcels 50.45% IT services 91.03% 86.22% 99.96% Engineering and construction services in Chile Toll-road concession 87.59% 99.98% Mining services Highway concession 70.00% 75.00% Engineering and Construction services for Oil&Gas industry in Colombia Mass transit system concession 50.00% Water plant concession 95.00% O&G production, gas processing & fuel storage Operation and maintenance of infrastructure assets 99.81% (1) 36.10% of the share capital in Viva GyM is held by our subsidiary GyM. Page 12

13 Annex: Notes to the Consolidated Results Report i) EBITDA As of the information reported in the prospectus regarding the shares issuance registered before the SEC, the international market practice for the EBITDA calculation has been adopted. The EBITDA calculation will start from the net income, figure to which the taxes, exchange rate differences and interests expenses will be returned to, whilst the depreciation and amortization will be added. We previously reported the EBITDA calculated as operational income plus depreciation and amortization. This report includes, besides the EBITDA, the adjusted EBITDA, which is calculated as follows: EBITDA: the proportional part of the land component of the units delivered during the period, will be added; Metro de Lima : the financial expenses considered, as well as the capital amortization applied to the corresponding long-term account receivable during the period, will be added. ii) Backlog As of the information reported in the prospectus regarding the shares issuance registered before the SEC, the reporting method of the company s Backlog will have modifications in the Infrastructure and segments according to what is following described. Engineering and Construction and Technical Services will continue to report their backlog according to the local market, therefore the total signed contracts will be reported. Infrastructure: the Oil & Gas business and the Norvial toll road are not included as backlog : only the sold units which are pending of delivery are reported as backlog iii) ROE For the ROE calculation in the intermediate quarters, the net profit considered is the one for the last twelve months (LTM) (LTM Net Profit divided by Total Equity) iv) Gross Debt / EBITDA ratio For the Gross Debt/Ebitda ratio calculation, the EBITDA considered is the one for the last twelve months (LTM) (Gross Debt divided by LTM EBITDA) v) Net Debt / EBITDA ratio For the Net Debt/Ebitda ratio calculation, the EBITDA considered is the one for the last twelve months (LTM) (Net debt, equal to Gross Debt minus Cash, divided by LTM EBITDA) Page 13

14 Contacts: Mónica Miloslavich Hart Chief Financial Officer (511) Samantha Ratcliffe Leiva Head of Investor Relations (511)