Gross Profit reached S/ MM in 2Q2012, increasing 3.9% compared to 2Q2011

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2 Executive Summary The Group reached an Activity of S/. 2,257.7 MM in the first semester of 212, a 9.6% growth compared the first semester of 211 Gross Profit reached S/ MM in 2Q212, increasing 3.9% compared to 2Q211 EBITDA (earnings before interests, taxes, depreciation and amortization) was S/ MM in 2Q212, higher by 5.6% than the result obtained in 2Q211 Net Income was S/. 11. MM in 2Q212, representing a decrease of 2.4% compared to 2Q211 Backlog reached US$ 3,328 MM at 2Q212, an 18.3% increase compared to 2Q211 Activity 2,59,774 2,257,66 9.6% GROSS PROFIT 328, ,35 3.9% General Expenses (92,354) (114,26) Others 4,12 3,161 OPERATIONAL INCOME 24,81 23,44-4.% Financial Expenses (1,88) (15,95) Others 2,79 2,23 PRETAX INCOME 232, , % Taxes (77,46) (77,416).5% Minority Interests (17,547) (3,115) NET INCOME 138,191 11,16-2.4% EBITDA 323,94 342, % Financial Ratios Gross Margin 15.9% 15.1% Net Margin 6.7% 4.9% EBITDA Margin 15.7% 15.2% Financial Debt 413, ,175 Financial Debt / EBITDA ROE 23.4% 18.1% Balance Sheet (Thousands S/.) Current Assets 2,381,354 2,71,272 Non Current Assets 1,41,47 1,493,34 Total Assets 3,422,41 4,194,612 Current Liabilities 1,588,52 2,91,31 Non Current Liabilities 53,36 552,14 Total Liabilities 2,91,826 2,643,325 Equity 1,39,792 1,229,166 Minority Interests 29, ,121 Total Equity 1,33,573 1,551,287 Total Liabilities and Equity 3,422,4 4,194,612 Note: the Consolidated Results Report presents the accumulated figures as of second quarter of 212 and 211. In that sense, mentions of 2Q212 and 2Q211 refer to the periods of six months ended on June 3 of 212 and 211 respectively. Page 2

3 Consolidated Results Activity. Consolidated Activity reached S/. 2,257.7 MM as of 2Q212, an increase of 9.6% compared to 2Q211. On a Business Areas basis, Engineering and Construction registered a decrease of 5.9% as of 2Q212, leading to a contribution of 65.5% of the Group s Activity. The Services area registered a reduction of 13.2% as of 2Q212, representing 28.9% of the Group s Activity. Infrastructure grew 112.5% as of 2Q212, due mainly to the revenues generated by PTR La Chira and GyM Ferrovias, while the Real Estate area posted a 29.6% growth as of 2Q212. EBITDA. Consolidated EBITDA was S/ MM as of 2Q212, higher by 5.6% compared to the 2Q211. This result is mainly explained by the Real Estate area, and in a less extent, by the Infrastructure area. The EBITDA Margin slightly decreased in the 2Q212 compared to 2Q211, from 15.7% to 15.2%, mainly due to the Services and Infrastructure areas results, which was partially compensated by the Real Estate area. 5, 4, 3, 2, 1, QUARTERLY CONSOLIDATED ACCUMULATED ACTIVITY (S/. MM) 831 2,6 3,155 4,243 1,11 2, % 1T 11 2T11 3T11 4T11 1T 12 2T 12 Stable Cash Flows. Regarding stable long term cash flows, during 2Q212, 34.5% of the consolidated EBITDA is originated from Stable Cash Flow s businesses; a reduction compared to 2Q211 due mainly to the negative result of GyM Ferrovias, which was in line with the Group s estimates. The EBITDA generated from these businesses allows us to cover the Interest Expenses of the Group plus the General Expenses of the construction-related businesses in 1.7x times. ACTIVITY BY BUSINESS AREA EBITDA BY BUSINESS AREA NET INCOME BY BUSINESS AREA STABLE CASH FLOWS EBITDA Eng & Constr. 65.5% Services 28.9% Eng & Constr. 46.9% Services 3.2% Eng & Constr. 61.7% Services 34.3% Stable Cash Flows 34.5% Infrast. 4.7% Real Estate 4.1% Real Estate 15.1% Infrast. 8.3% Real Estate 7.7% Infrast. -.9% Net Income. Consolidated Net Income was S/. 11. MM as of 2T212, lower by 2.4% compared to the result obtained in 2Q211. This is mainly explained by the lower income reported by the Services area (-27.4%) and the loss reported by the Infrastructure area, which was partially offset by the Real Estate Area. Net Margin was 4.9% in 2Q212, lower than the 6.7% reported in 2Q211. A detailed description of the individual changes and its impact on the Net Income is included in the Services and Infrastructure sections. Backlog. Consolidated Backlog reached US$3,328 MM as of 2Q212, which represents an increase of 18.3% compared to the amounted reported as of 2Q211. The Backlog distribution as per Business Areas is as follows: Engineering & Construction represents 56%, Services 29%, Infrastructure 1.1% and Real Estate 9.5%. In terms of economic sectors, Power and Mining account for 23% of the consolidated Backlog respectively, followed by Transportation (22%), Real Estate (14%) and Oil & Gas (13%). The Backlog that was originated during the 2Q212 (new contracts) amounted to US$458.1 MM. The total consolidated Backlog will be executed as follows: US$ 98.8 MM in 212, US$ 1,136.8 MM in 213, and the remaining in 214 and the following years. 3,5 3, 2,5 2, 1,5 1, 5 Backlog US$ MM 3,75 3,298 3,328 2,814 2, % 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 Capital Expenditures. In the first six months of 212, Capital Expenditures (CAPEX) amounted S/ MM (US$ MM), which represent an increase of 16.% compared to 2Q212 figures. The CAPEX distribution per Business Areas is: Engineering & Construction represents 51%, followed by Real State with 17.%, Services 16.% and Infrastructure 12.%. Indebtedness. Consolidated Financial Debt amounted to S/ MM (US$ 252. MM) as of 2Q212, a 62.8% increased compared to 2Q211. The major percentage increases where in the Engineering & Construction Area (+134.6%) and Real State Area (+58.1%), explained by the consolidation of debt of Stracon GyM and the acquisition of lands. The 47.3% of the Consolidated Financial Debt (S/ MM) corresponds to short-term financial obligations and the remaining (S/ MM) correspond to longterm financial obligations. The total Available Cash is S/ MM, as of 2Q212. Consolidated leverage, measured by through the Gross Financial Debt / Net Worth, reached.43x, while the Gross Financial Debt / EBITDA reached.98 x in 1Q12. Page 3

4 Engineering and Construction Activity. The Engineering and Construction area reported an Activity of S/. 1,478.3MM as of 2Q212, which is equivalent to a 5.9% growth compared to 2Q211. Activity in GyM increased to S/. 1,394.5 MM, a 4.1% decrease compared to 2Q211. The reduction in activity was due mainly to a decrease in the Civil Works Division as a consequence of the delay in some works execution start (from which some of them have already initiated works, such as Tranche 2 of the Lima Metro, PTAR La Chira, Pachacutec, among others). This was compensated by an increase in the Electromechanic Works and Mining Services Divisions (due to the consolidation of results from Stracon GyM). The most important contracts executed during 2Q212 were, the Concentrator Plant in the Antapaccay Mine and the construction of the Lima Mass Transport System s (Electric Train) Line 1 Second Tranche; Transmission Line Mantecillo-Caserones in Chile, Mining Services Contract for Rio Alto in La Arena Mine, the new Fuerabambas City (Las Bambas Project) and natural gas network for Contugas. Activity in GMI reached S/ MM as of 2Q212, a 47.3% growth compared to 2Q211. Activity 1,396,141 1,478, % GROSS PROFIT 163,585 17, % General Expenses (5,638) (66,51) Others (539) 32 OPERATIONAL INCOME 112,48 14,54-7.% Financial Expenses (1,54) 38 Others 4,5 7,571 PRETAX INCOME 115, , % Taxes (4,865) (41,934) 2.6% Minority Interests (4,798) (2,579) NET INCOME 69,696 67,87-2.6% EBITDA 15,744 16, % Gross Profit. Gross Profit reached S/ MM in 2Q212, equivalent to a 4.1% decrease compared to 2Q211. Gross Margin decreased in the same period, from 11.7% to 11.5%. Operating Income. Operating Income reached S/.47.1 MM in 1Q12, representing a 4.1% increase compared to 1Q11. Financial Ratios Gross Margin 11.7% 11.5% Net Margin 5.% 4.6% EBITDA Margin 1.8% 1.9% Financial Debt 136, ,713 Financial Debt / EBITDA Net Income. The Engineering and Construction Area achieved a Net Income of S/.67.9 MM in 2Q212, which represents a 2.6% decrease compared to 2Q211. Net Margin fell in the same period, from 5.% to 4.6%. ACTIVITY (Thousands of S/.) EBITDA (Thousands of S/.) NET INCOME (Thousands of S/.) +5.9% 57 1, ,395 GMI GyM +6.6% GMI GYM % GMI GYM EBITDA. EBITDA (earnings before Interests, Taxes, Depreciation and Amortization) reached S/ MM in 2Q212, which means a 6.6% growth compared to the same period last year. EBITDA Margin increased from 1.8% to 1.9% in the same period. Backlog. The Engineering and Construction area reported a Backlog of US$ 1,865 MM in 2Q212, amount that is equivalent to a 25.1% increase compared to 2Q211 figures. The total of new contracts in the 2Q212 was US$ MM. The Backlog that was originated during the second quarter of 212 is mainly composed by the Proyecto Mina de Cobre in Panama, which adds to the contracts already obtained during the first quarter of 212 (Toromocho Concentrator Plant, Real T8/T9 Office Buildings). The total Backlog of the Engineering and Construction Area will be executed as follows: US$ 61.4 MM in 212, US$ 626.5MM in 213, and the remaining in 214 and the following years. Capital Expenditures. Capital Expenditures (CAPEX) in 2Q212 amounted to S/ MM (US$ 57.4MM), corresponding to equipment replacements and acquisition for mining contracts, which US$ 29MM corresponds to Stracon GyM consolidation of mining services operations. Engineering & Construction: BACKLOG (US$ MM) 2, 1,84 1,95 1,49 1,865 1,5 1,491 1, % 1, 5 1T11 2T11 3T11 4T11 1T12 2T12 Page 4

5 Services Activity. The Services area reported an Activity of S/ MM in 2Q212, equivalent to a 13.2% growth compared to the same period last year. It is relevant to precise that the accumulated figures include the statistical effect of the consolidation of CAM, whose results are consolidated since March 211. On individual terms, during 2Q212 the activity in GMP was S/ MM (lower by 1.3% compared to 2Q211). This is due mainly to a decrease in the average prices of crude oil, what was partially compensated by a higher production (1,324 BPD versus 1,261 BPD). In addition, a decrease in volume of gas processed in the Pariñas Plant explained the decrease in activity in the oil & gas business. On the GMD side the activity was S/.92.8 MM (higher by 8.5%), in Concar was S/ MM (higher by 26.2%) and in CAM it was S/. 3.3 MM (higher by 18.1%). Gross Profit. Gross Profit amounted to S/ MM in 2Q212, equivalent to a 5.1% growth compared to same period last year. Gross Margin was 18.2%, lower than 19.6% registered in 2Q211. This is mainly explained by the lower margins in GMP (4.5% versus 44.%), as per the explanation lines above; and in the case of Concar (12.4% versus 2.8%), the margin fall is explained basically due to the extraordinary expenses in equipment maintenance and the start up of the asphaltic emulsion plant, added to the fact that in the first six months of 211 an extraordinary profit of US$2.2MM was reported as a result a favorable arbitration process from a previous contract. Operating Profit. Operating Profit was S/ MM in 2Q212, representing a 21.1% decrease compared to 2Q211. Operating Margin decreased in the same period, from 14.2% to 9.9%, explained in the previous paragraph. Activity 575,68 651, % GROSS PROFIT 112, , % General Expenses (37,159) (53,555) Others 6,8 (458) OPERATIONAL INCOME 81,614 64, % Financial Expenses (6,67) (4,637) Others 1,91 1,467 PRETAX INCOME 76,854 61, % Taxes (22,665) (2,2) -11.7% Minority Interests (2,236) (3,545) NET INCOME 51,954 37, % EBITDA 112,447 13, % Financial Ratios Gross Margin 19.6% 18.2% Net Margin 9.% 5.8% EBITDA Margin 19.5% 15.8% Financial Debt 135,25 21,326 Financial Debt / EBITDA.6.98 Net Profit. The Services Area achieved a Net Income of S/ MM in 2Q212, which means a reduction of 27.4% compared to 2Q211. Net Margin decreased in the same period from 9.% to 5.8%, explained by the above mentioned factors. ACTIVITY (Thousands of S/.) EBITDA (Thousands of S/.) +13.2% CAM CONCAR GMD GMP % CAM Concar GMD GMP NET INCOME (Thousands of S/.) -27.4% CAM Concar GMD GMP -3 EBITDA. EBITDA reached S/ MM in 2Q212, meaning a 8.2% growth compared to same period last year. EBTIDA Margin fell from 19.5% to 15.8% in the same period. This is explained by the lower gross margins of GMP and Concar (as explained above). At the company level, EBITDA Margin was 49.1% for GMP, 13.8% for GMD, 9.7% for Concar and 3.3% for CAM. Backlog. The Services area reported a Backlog of US$ MM in 2Q212, amount that is equivalent to a 8.4% increase compared to 2Q211. The Backlog that was originated during 2Q212 amounted to US$ 29.1 MM, mainly explained by new contracts of CAM, specially the new 2 contracts for Red N 1 and Red N3 of the Cuzco Regional Government, for amounts of S/. 329MM and S/. 226 MM respectively. These contracts add to the Backlog generated in the Business Area during this year. Services: BACKLOG (US$ MM) 1, % The total Backlog of the Services Area will be executed as follows: US$ MM in 212, US$ MM in 213, and the remaining in the following years. Capital Expenditures. Capital Expenditures (CAPEX) in 2Q212 amounted to S/.5.1 MM (US$ 18.7 MM) corresponding mainly to investments in GMP and GMD. 2 1T11 2T11 3T11 4T11 1T12 2T12 Page 5

6 Infrastructure Activity. The Infrastructure area registered an Activity of S/ MM in the first semester of 212, an increase of 112.5% compared to the same period last year. This growth is explained by the start of operation of GyM Ferrovías (Metro de Lima) and also by the accounting recognition of revenue from PTAR La Chira. On the other side, Norvial, Survial and Canchaque registered an increase in there activity during the semester. Gross Profits. Gross Profit was S/ MM in the first semester of 212, an increase of 36.1% compared to same period last year. The gross margin was 23.9%, lower than 37.3% registered in 2Q211. This result, which was within the Group s estimations for this year, is explained by the start of operation of GyM Ferrovías and by the decrease in Norvial s margins. This result was partially offset by the positive results of PTAR La Chira. Operating Profit. Operating Profit reached S/ MM in the first semester of 212, an increase of 2.4%% compared to same period last year. The operational margin decreased in the same period from 25.5% to 14.4%. This is explained by the operational margin obtained in PTAR La Chira, which compensated the operating expenses of GyM Ferrovías (estimated by the Group). Finally, Norvial increased the margins from 45.6% in 2Q11 to 46.6% in 2Q212. Activity 49,792 15, % GROSS PROFIT 18,582 25, % General Expenses (5,468) (1,62) Others (442) 26 OPERATIONAL INCOME 12,672 15, % Financial Expenses (4,866) (1,532) Others 1,689 (1,8) PRETAX INCOME 9,495 3, % Taxes (2,651) (282) -89.4% Minority Interests (4,29) (4,366) NET INCOME 2,554 (1,5) % EBITDA 23,481 28, % Financial Ratios Gross Margin 37.3% 23.9% Net Margin 5.1% -.9% EBITDA Margin 47.2% 26.7% Financial Debt 93,562 8,99 Financial Debt / EBITDA Net Profit. The Infrastructure Area Net Profit was negative by -S/. 1. MM in the first semester of 212, compared to the positive results of S/.2.5 in the same period in 211. This is due to the reasons explained above, mainly because of higher operating expenses than incomes in GyM Ferrovías, partially c ompensated by the positive results in Norvial and PTAR La Chira. ACTIVITY (Thousands of S/.) EBITDA (Thousands of S/.) NET INCOME (Thousands of S/.) % +2.4% Tren Electrico La Chira Canchaque Survial Norvial Tren Electrico La Chira Canchaque Survial Norvial Tren Electrico La Chira Canchaque Survial Norvial EBITDA. EBITDA was S/.28.3 MM during the first semester 212, meaning a 2.4% increase compared to the same period last year. EBITDA margin fell from 47.2% to 26.7% in the same period, explained by the higher operating expenses than incomes in GyM Ferrovías, partially compensated by the positive results in Norvial (EBITDA margin of 77.4%) and PTAR La Chira (EBITDA margin of 3.9%) Backlog. The Infrastructure area reported a Backlog of US$ MM in 2Q212, meaning an 43.% growth compared to 2Q211. The Backlog that was originated during 2Q212 amounted to US$ 43.2 MM, mainly explained by GyM Ferrovías (Metro de Lima) and PTAR La Chira, which together represents US$ 28.5 MM. The total Backlog of the Infrastructure Area will be executed as follows: US$ 49.4 MM in 212, US$ 91.2 MM in 213 and the remaining in the following years. Capital Expenditures. Capital Expenditures (CAPEX) in the first semester of 212 amounted to S/ MM (US$ 19.1 MM) corresponding mainly to the Electric Train and, in a less amount, to the periodic maintenance of Norvial. Infrastructure: BACKLOG (US$ MM) % T11 2T11 3T11 4T11 1T12 2T12 Page 6

7 Real Estate Activity. The Real Estate area reported an Activity of S/ MM in the first semester of 212, meaning a 29.6% increase compared to the same period last year. This is consequence of the sale of a land in Almonte, Lurín, which compensated the lower number of units delivered in this quarter. Gross Profit. Gross Profit amounted to S/ MM in 2Q212, equivalent to a 148.6% increase compared to same period last year. Gross Margin has increased from 31.7% to 6.9% in the same period, thanks to the capital gain obtained in the land sale mentioned before, and in a less extent to better margins in projects, such as Parque Central. Operating Profit. Operating Profit reached S/ MM in 2Q212, representing a 164.4% growth compared to 2Q211. Operating Margin increased in the same period from 26.5% to 54.%. Net Profit. The Real Estate area achieved a Net Profit of S/. 8.4 MM in 2Q212, representing a 128.9% increase compared to 2Q211. Net Margin increased in the same period from 5.2% to 9.1%. This results is explained above. EBITDA. EBITDA reached S/.51.7 MM in the first semester of 212, meaning a 146.5% increase compared to the same period last year. EBITDA Margin improved from 29.5% to 56.1% in the same period. Activity 71,86 92, % GROSS PROFIT 22,559 56, % General Expenses (3,73) (6,298) Others (16) (47) OPERATIONAL INCOME 18,813 49, % Financial Expenses (458) (1,754) Others PRETAX INCOME 18,881 48, % Taxes (5,533) (15,32) 176.9% Minority Interests (9,669) (24,665) NET INCOME 3,679 8, % EBITDA 2,985 51, % Financial Ratios Gross Margin 31.7% 6.9% Net Margin 5.2% 9.1% EBITDA Margin 29.5% 56.1% Financial Debt 42,367 67, Financial Debt / EBITDA ACTIVITY (Thousands of S/.) EBITDA (Thousands of S/.) NET INCOME (Thousands of S/.) 29.6% 146.5% 128.9% VIVA GyM VIVA GyM 4 8 VIVA GyM Backlog. The Real Estate area reported a Backlog of US$ 315. MM in 2Q212, meaning a 39.2% increase compared to 2Q211. The most important contracts of the Backlog are Parques de Villa El Salvador (66 units), Parques del Agustino II (64 units) and Cipreses. The total Backlog for the Real Estate Area will be executed as follows: US$ 57.1 MM in 212, US$ MM in 213, and the remaining in the following years. Real Estate: BACKLOG (US$ MM) % Capital Expenditures. Investments in 2Q212 amounted to S/ MM (US$ 13.6 MM), corresponding to the acquisition of areas for the development of the real estate projects. 1 1T11 2T11 3T11 4T11 1T12 2T12 Page 7

8 Contacts: Mónica Miloslavich Hart Chief Financial Officer (51) Dennis Gray Febres Investor Relations (51) (51)