Grupo Graña y Montero Report at June 30th, 2010

Transcription

1 For additional information please contact: July 20 th, 2010 Symbols: Graña y Montero S.A.A. GRAMON C1 BVL (Peru) Mónica Miloslavich Hart GRYMY OTC (USA) Chief Financial Officer Phone: (511) Fax: (511) address: mmiloslavich@gym.com.pe RESULTS AS OF JUNE 30th, 2010 (NON AUDITED FIGURES) SUMMARY The Activity at the end of the second quarter of 2010 increased in 23.7% (in Nuevos Soles) in relation to the 2Q-09, reaching S/ MM (US$ MM; 31.7% growth in US Dollars). The Net Profit achieved at the 2Q-10 was S/ MM (US$ 29.6 MM), representing 6.8% of the Activity and 55.1% growth when compared to the 2Q-09. This increment is explained by the oil price s raise impacting the Gross Profit of the Oil Business; by the higher profit from the Construction and Real Estate Business and from the Infrastructure and the Highways' Operation and Maintenance Businesses. The EBITDA 1 of the second quarter of 2010 reached S/ MM (US$ 74.1 MM) that represents 16.9 % of the Activity and an increase of 34.1% in relation to 2Q-09. The Consolidated Backlog at the end of the 2Q-10 added up S/. 4,199.9 MM (US$ 1,485.6 MM) that represent an increase of 34.2% in relation to the 2Q-09. Out of this Backlog, S/. 1,271.8 (US$ MM) will be executed along 2010, S/. 1,699.6 MM (US$ MM) in 2011 and the balance from 2012 onward. 1 Operation Profit + Depreciation + Amortization 1 de 9

2 MAIN ACCUMULATED CONSOLIDATED FIGURES (In Thousand Nuevos Soles) 2009/ II 2010 / II 2Q 10 / 2Q'09 Activity 998, % 1,235, % 23.7% Revenues 921, % 1,152, % 25.1% Gross Profit 152, % 205, % 35.0% Operating Profit 99, % 146, % 47.6% Realized Profit 89, % 138, % 54.6% Net Income 53, % 83, % 55.4% EBITDA 156, % 209, % 34.3% Notes: 1. The figures presented in this report do not include the sales agreement of the Entertainment Businesses Larcomar that was announced in April. 2. The reference to the Infrastructure Business corresponds to the Highway Concessions and not to the Construction as was referred to in previous reports. The Construction Business is referred as such in this report. PROFIT AND LOSSES The consolidated Activity of the Graña y Montero Group closes the second quarter of 2010 growing 23.7% in comparison with the 2Q-09, amounting S/. 1,234.9 MM. The growth of the Activity is mainly explained by the growth in the Construction Business that increased in S/ MM (+10.9%); the increase in the Infrastructure Business that grew S/.25.2 MM (+29.6%); of the Oil Business growing S/.27.0 (+33.9) and of the Real State Business that increased in S/ MM (+235.4%) taking into consideration that this company started operations only in the year The Activity of the Construction Business reached S/ MM (US$ MM). The main contracts executed at the end of the second quarter by the Electromechanical Division are the Plant and Workshops at the Bayovar Mine and the Electric and Instrumentation Works for Peru LNG, as well as the assembling works at the Pueblo Viejo Mine in Dominican Republic, while for the Civil Work Division, the main contracts executed, were the southern section 1 of the Inter oceanic Highway, the mining services contracts for El Brocal and Shougang mining companies and the civil works for the Electric Train (Lima). On the other hand at the Buildings Division, the main contracts executed were the El Libertador Hotel, the already completed Qubo offices building, the IT Center of the Banco de Crédito and the Ibis Hotel. The Activity of the Real State Business reached S/ MM (US$ 52.2 MM). Most part of the income reported at the end of the second quarter corresponds to the delivery of houses for the Projects: Parques del Agustino, Javier Prado 200 in Magdalena, Malecón Cisneros en Miraflores and Golf Millenium in San Isidro. 2 de 9

3 The Activity of the Oil Business closes the second quarter of 2010 in S/ MM (US$ 37.8) that represents an increment of 33.9% in relation to the 2Q-09. This increment is explained by the difference in the oil average price between both terms, from US$ 50 to US$ 76, impacting the Activity of the Exploration / Production Line as well as the Activity of the Gas Plant; together with greater volume of oil barrels and higher combustibles volumes for storage and throughput. The Activity of the Engineering Business reached S/ MM (US$ 16.1 MM) that represents an increase of 26.8% when compared to the 2Q-09. The sectors driving the growth of this business are energy and mining, hydrocarbons, industry and buildings. The main contracts that have been developed at the end of the second quarter are the engineering for the Water Treatment Plant for the Alto Cayma Consortium; the Engineering Frame Agreement with Antamina; the Engineering for the New Morococha City for Chinalco and the engineering for El Sol Highway for the Hidalgo Hidalgo Consortium. The Activity of the Infrastructure and the Highways' Operation and Maintenance at the closure of the 2Q-10, reached S/ MM (US$39.1 MM), corresponding to a 29.6% increment in relation to the 2Q-09. The increment is mainly explained by the Operation Contracts of the Paita Yurimaguas Concession; the Operation and Maintenance Contract of the Transportation Net No. 5 for Norvial; the Highway's Maintenance Contract for the Southern Section 1 of the Inter oceanic Highway for Survial; and the Maintenance Contracts for the state highways at La Merced, Sullana and Ayacucho, among others. In the IT Business, the Activity when closing the second quarter of 2010 amounted S/.55.7 MM (US$ 19.7 MM) representing a 6.1% increase with respect to the 2Q-09. This growth is mainly supported by the good performance of the Software Manufacture and of the Technology Outsourcing Line. In Larcomar the Activity of the 2Q-10 reached S/ MM (US$ 5.8 MM) that represents an increase of 4.5% in relation to 2Q-09. This growth is explained by the increment of the revenues from the rent of the operators and the greater inflow of vehicles at the parking lot. Quarterly Consolidated Activity (S/. 000's) Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q % of the consolidated Gross Profit is originated in the businesses related to Construction: In this regard, even though, 62.1% of the Activity comes from the Construction Business, the percentage of Gross Profit from this business is lesser. 3 de 9

4 57.7% of the Gross Profit is originated in businesses not related to the construction, in line with the diversification strategy of the Group. Infrastructure / Highways' O&M 8.7% Engineering 3.6% Real Estate 11.6% IT 4.4% ACTIVITY PER BUSINESS Oil Services 8.4% Larcomar 1.3% Construction 62.1% Engineering 58% GROSS PROFIT Real Estate 0% Construction 42% The Gross Profit reached S/ MM (US$ 72.6 MM) that represents 16.6% of the Activity and an increased of 35.0% in relation to the 2Q-09. The Gross Profit of the quarter is supported by the Gross Profit of the Construction Business that reached S/ MM (US$ 30.7 MM); by the Gross Profit of the Oil Business amounting S/ MM (US$ 13.8 MM); by the Gross Profit of the Infrastructure and the Highways' Operation and Maintenance reaching S/, 33.3 MM (US$ 11.8 MM) and of the Real State Business at S/ MM (US$ 6.5). The other businesses completing the balance of the Gross Profit. The Gross Profit of the Construction Business increased in 33.5% in relation to the 2Q- 09. The increment in the Gross Profit is related to the formerly explained increase of Activity in the three Divisions. The Gross Profit of the Oil Business increase in 84.3% in relation to the second quarter of former year. The increment in the Gross Profit of this business is explained by before mentioned raise in the oil price, impacting the Exploration and Production Business as well as the Gas Plant, which prices are also referred to the oil price. The Gross Profit achieved by the Infrastructure and Highways' Operation and Maintenance Business was S/ MM (US$ 11.8 MM), which represents a 33.5% growth with respect to 2Q-09 and mainly explained by the Norvial Highway Concession and the Operation and Maintenance Contracts before mentioned. The Gross Profit of the Real State Business was S/ MM (US$ 6.5 MM), greater in 171.5% as consequence of the delivery of houses for the Project Parques de El Agustino, Javier Prado 200 in Magdalena and Malecón Cisneros in Miraflores. The Gross Profit of the Engineering Businesses reached S/ MM (US$ 4.3 MM) representing 31.8% growth in relation to the 2Q-09. The Gross Profit of the IT Business grew in 26.9%, reaching S/. 9.3 MM (US$ 3.3 MM); while the Entertainment Business Gross Profit was S/ MM (US$ 3.5 MM). The achieved Operating Profit was S/ MM (US$ 51.8 MM) that represents an Operating Margin of 11.9% and an increase of 47.5% in relation to the 2Q-09. The formerly explained greater Gross Profit supports the increase in the Operating Profit. On the other hand, the General Expenses reached 4.75% of the Activity, smaller in terms of percentage than that of the 2Q-09. The net financial expenses amounted to S/ MM (US$ 4.4 MM) representing a reduction of 36.6% in relation to the 2Q-09. The reduction in the financial debt and the lesser rates obtained in the financial system explain this decrease. At the closure of the second quarter, the Financial Expenses Coverage is 16.7x. 4 de 9

5 The accumulated effect of the devaluation at the 2Q-10 represents an income of S/. 5.8 MM and at the end of the 2Q-09 an income S/ MM. The reevaluation of the Nuevo Sol in relation to the 2Q-09 has produced a gain from the lesser value of the liabilities in foreign currency. The Net Profit reached S/ MM (US$ 29.6 MM) representing an increment of 55.1%. The larger Net Profit is explained by the larger Gross Profit formerly explained, in addition to the lesser financial expenses and the positive effect from the exchange rate difference. The accumulated EBITDA 1 at the end of the second quarter of 2010 reached S/ MM (US$ 74.1 MM) that represents 16.98% of the Activity and a 34.2% increment in relation to the 2Q-09. This growth is explained by the before mentioned greater Operation Profit, as well as by the greater depreciation and amortization of the investments at the end of the 2Q-10. On the other hand, the stable long term cash flows such as the infrastructure business; the highways' operation and maintenance; the oil services and the Outsourcing businesses reached 49.9% of the EBITDA 1. With these results a 1.71x coverage is achieved over the total Financial Expenses of the Group, plus the General Expenses not related to these businesses, additionally considering that these last ones are not reduced in the event of a total loss of its Activity. EBITDA PER BUSINESS IT, 3.53% Engineering, 3.16% Larcomar, 3.78% Oil Services, 23.98% Construction, 38.96% Infrastructure / Highways' O&M, 18.65% Real Estate, 7.94% BALANCE SHEET The Financial Leverage is reduced from 0.68x to 0.41x, while the Total Leverage is reduced from 1.74x to 1.54x. The larger cash flows generated at the end of 2009 allowed reducing the financial debt during the 1Q-10; prepaying the bonded debt to be due yet in Furthermore, the leverage ratios are better than those of similar quarter of 2009, even after the financial debt at the end of the second quarter has slightly increased. For the calculation of these ratios the cash net debt is not included. The Current Ratio closes the quarter in 1.31x. This current ratio at the end of the quarter is slightly smaller than at the end of the 2Q-09, as the accounts payable grew in larger proportion than the accounts receivable. 5 de 9

6 The Financial Debt / EBITDA 1 reached 0.88x at the end of the 2Q-10. This increment of the EBITDA combined with the reduction of the Financial Debt has originated an improvement in this indicator in 0.64x in relation to the 2Q-09. The average Return on Equity closes the second quarter in 20.6% while the Return on Assets closes in 13.8%. The return on equity is greater than the one at the end of the 2Q-09 as consequence of the increase in the Net Profit achieved at the end of the 2Q-10. Similar effect is produced over the Return on Assets compared with the return obtained in similar former quarter. BACKLOG AND PERSPECTIVES The Backlog of the Group increased in 34.1% compared with the 2Q-09, reaching S/. 4,199.9 MM (US$ 1,485.6 MM), representing 1.73x the Activity of the last 12 months. Out of this total S/.1,271.8 (US$ MM) will be executed in 2010, S/. 1,699.6 MM (US$ MM) in 2011 and the balance from 2012 onward. Again in this quarter, the historically largest Backlog has been obtained, after exceeding the historical maximum of March It is important to underline that the Backlog at the end of the 2Q-10, to be executed along 2011, is larger in 35% than the Backlog for execution at the end of 2010 for that same year Backlog US$ MM ,389 1,436 1, ,008 1,108 1, Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 The Capital Investment of the Group amounted to S/ MM (US$ 38.3 MM) at the end of the second quarter of year From the total investments, S/ MM (US$ 12.2 MM) correspond to investments in the Infrastructure Sector; S/ MM (US$ 4.4 MM) to the Hydrocarbons Sector and S/ (US$ 8.6) to the Mining Sector. Additionally, S/ (US$ 8.2) correspond to investments for replacing equipments for the different business of the Group and terrains for the real estate business, S/. 9.0 (US$ 3.2) 6 de 9

7 Subsidiary Companies of Graña y Montero S.A.A. The Graña y Montero Group operates in diverse economic sectors, mainly by means of the following operative subsidiaries: GyM is the original contractor company that has three divisions: Civil Works, Electro mechanic and Buildings Construction. GMP is the company providing services for the oil industry; oil extraction and drilling of wells in the northern zone of the country. It is also the operator partner in the Consorcio Terminales in association with German Oiltanking, for the operation of 9 combustibles' storage terminals in Peru. GMD, is the leader company providing IT solutions for the corporate market. GMI, is the company dedicated to Engineering Design, Supervision of Civil Works and Projects Management. It is also the mayor shareholder of ECOTEC, company specialized in Environmental Engineering. GMV, is the company dedicated to the real state business as well as to all related activities. Highways' Operation and Maintenance, Graña y Montero participates for several years now in the concessions business. Currently it operates the concessions: Red Vial Nº 5 (Norvial S.A.); IIRSA Norte; Survial; Conservación Vial Tacna and Conservación Vial Ayacucho - Andahuaylas Infraestructura Corresponds to the Highways Concessions of Norvial: Ancon-Huavcho-Pativilca Highway; of Survial: Inter oceanic Southern Section 1 Highway; and, Canchaque: Buenos Aires Canchaque Highway. Larcomar, is located by the cliff down the Salazar Park in the District of Miraflores. With 44,675m² total area, it mainly develops real state businesses, renting commercial space at the entertainment area as well as in the so called Fashion Center area. It also generates revenues from businesses such as the parking lot and the static advertising placed at the center. 7 de 9

8 Graña y Montero S.A.A. and Subsidiaries Consolidated Profit and Loss Statements at June 30th, 2010 In Thausand Nuevos Soles Var % Activity 998,497 1,235, % Sales 921,002 1,152, % Cost of Sales -768, , % Gross Profit 152, , % Administrative Expenses -52,732-58, % Operating Profit 99, , % Received Dividends 1, % Financial Revenues Financial Expenses, Net -19,766-12, % Other Revenues Other Expenses, Net 8,995 4, % Realized Profit 89, , % Devaluation Effect 10,239 5, % Profit Before Taxes 99, , % Profits' Sharing -3,858-6, % Taxes -34,764-45, % Profit of the Period 61,300 92, % Minority Interests -7,344-8, % Net Profit 53,956 83, % (*) Non Audited Figures 8 de 9

9 Graña y Montero S.A.A. and Subsidiaries Consolidated Balance Sheet as of June 30th, 2010 In Thousand Nuevos Soles Var % ASSETS CURRENT ASSETS - Cash and Banks 200, , % - Negotiable Securities % - Investments Available for Sale 1,915 1, % - Accounts Receivables 449, , % - Accounts Receivable Securities Fund % - Affiliates 11,938 4, % - Other Accounts Receivable 138, , % - Inventories 206, , % - Deferred Accounts 75, , % TOTAL CURRENT ASSETS 1,084,082 1,357, % NON CURRENT ASSETS - Long term Receivables 16,547 19, % - Investments Available for Sale % - Investments in Securities 77, , % - Fixed Assets, Net 425, , % - Other Assets 335, , % TOTAL NON CURRENT ASSETS 854, , % TOTAL ASSETS 1,938,955 2,292, % LIABILITIES CURRENT LIABILITIES - Bank Liabilities 117,979 39, % - Accounts Payable 283, , % - Affiliates 85,906 12, % - Accounts Payable Security Fund % - Other Accounts Payable 207, , % - Bonded Debt 1,852 19, % - Current portion, Long Term Debt 58,999 6, % - Current Portion, Long Term Bank Debt 59,148 69, % - Current Portion, Bonded Debt 31, % TOTAL CURRENT LIABILITIES 846,473 1,032, % LONG TERM LIABILITIES - Long Term Liabilities 22,925 56, % - Long Term Bank Liabilities 236, , % - Bonded Debt 29, % - Deferred Income Tax 34,351 57, % TOTAL LONG TERM LIABILITIES 323, , % TOTAL LIABILITIES 1,169,846 1,388, % - Minority Interests 107, , % - Deferred Profit 72,454 2, % EQUITY - Capital 389, , % - Reserves 41,165 54, % - Various Reserves 7,000 5, % - Accumulated Results 97, ,305 - Results of the Period 53,956 83, % TOTAL EQUITY 589, , % TOTAL LIABILITIES + EQUITY 1,938,955 2,292, % (*) Non Audited Figures 9 de 9