UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15b-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of October 2023

 

Commission File Number 001-35991

 

AENZA S.A.A.

(Exact name of registrant as specified in its charter)

 

N/A

(Translation of registrant’s name into English)

 

Republic of Peru

(Jurisdiction of incorporation or organization)

 

Av. Petit Thouars 4957

Miraflores

Lima 34, Peru

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F ☒       Form 40-F ☐

 

 

 

 

 

 

October 31, 2023

 

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.

 

AENZA S.A.A.

 

By: /s/ CRISTIAN RESTREPO HERNANDEZ  
Name:  Cristian Restrepo Hernandez  
Title: VP of Corporate Finance  
Date: October 31, 2023  

 

 

 

 

 

 

 

 

AENZA S.A.A. AND SUBSIDIARIES

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2023

 

(Free translation from the original in Spanish)

 

 

 

 

AENZA S.A.A. AND SUBSIDIARIES

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2023 AND FOR THE THREE AND NINE-MONTHS PERIODS THEN ENDED

 

CONTENTS   Page
Interim Condensed Consolidated Statement of Financial Position   1
     
Interim Condensed Consolidated Statement of Income   2
     
Interim Condensed Consolidated Statement of Comprehensive Income   3
     
Interim Condensed Consolidated Statement of Changes in Equity   4
     
Interim Condensed Consolidated Statement of Cash Flows   5
     
Notes to the Interim Condensed Consolidated Financial Statements   6 - 55

 

S/ =  Peruvian Sol
US$ =  United States dollar

 

 

 

 

AENZA S.A.A. and Subsidiaries
Interim Condensed Consolidated Statement of Financial Position
As of December 31, 2022 and September 30, 2023

 

      As of   As of 
      December 31,   September 30, 
In thousands of soles  Note  2022   2023 
Assets           
Current assets           
Cash and cash equivalents  9   917,554    888,615 
Trade accounts receivable, net  10   1,078,582    1,107,306 
Accounts receivable from related parties  11   27,745    34,879 
Other accounts receivable, net  12   393,195    415,154 
Inventories, net  13   346,783    393,932 
Prepaid expenses      28,098    38,893 
Total current assets      2,791,957    2,878,779 
              
Non-current assets             
Trade accounts receivable, net  10   723,869    764,738 
Accounts receivable from related parties  11   542,392    551,429 
Other accounts receivable, net  12   285,730    316,365 
Inventories, net  13   65,553    70,233 
Prepaid expenses      17,293    17,873 
Investments in associates and joint ventures  14   14,916    12,173 
Investment property, net  15   61,924    59,045 
Property, plant and equipment, net  15   284,465    301,982 
Right-of-use assets, net  15   50,207    43,204 
Intangible assets, net  15   787,336    778,665 
Deferred tax asset  22   295,638    255,616 
Total non-current assets      3,129,323    3,171,323 
Total assets      5,921,280    6,050,102 
Liabilities             
Current liabilities             
Borrowings  16   574,262    606,114 
Bonds  17   77,100    83,634 
Trade accounts payable  18   1,027,256    1,153,391 
Accounts payable to related parties  11   53,488    48,313 
Current income tax      69,652    52,880 
Other accounts payable  19   705,442    700,259 
Other provisions  20   132,926    107,534 
Total current liabilities      2,640,126    2,752,125 
              
Non-current liabilities             
Borrowings  16   305,631    343,149 
Bonds  17   792,813    752,420 
Trade accounts payable  18   9,757    6,472 
Accounts payable to related parties  11   27,293    28,243 
Other accounts payable  19   102,319    538,495 
Other provisions  20   569,027    101,112 
Deferred tax liability  22   128,308    171,046 
Total non-current liabilities      1,935,148    1,940,937 
Total liabilities      4,575,274    4,693,062 
              
Equity  21          
Capital      1,196,980    1,196,980 
Legal reserve      132,011    132,011 
Voluntary reserve      29,974    29,974 
Share Premium      1,142,092    1,142,092 
Other reserves      (97,191)   (74,588)
Retained earnings      (1,342,362)   (1,309,785)
Equity attributable to controlling interest in the Company      1,061,504    1,116,684 
Non-controlling interest  29   284,502    240,356 
Total equity      1,346,006    1,357,040 
Total liabilities and equity      5,921,280    6,050,102 

 

The notes on pages 6 to 55 are an integral part of these interim condensed consolidated financial statements.

 

- 1 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Profit or Loss

For the three and nine-month period ended September 30, 2022 and September 30, 2023

 

      For the three-month
period ended
   For the nine-month
period ended
 
      September 30,   September 30, 
In thousands of soles  Note  2022   2023   2022   2023 
Revenue                   
Revenue from construction activities      642,555    703,862    1,891,188    1,741,900 
Revenue from services provided      282,224    304,127    778,716    820,470 
Revenue from real estate and sale of goods      173,657    207,242    476,129    539,920 
Total revenue from ordinary activities arising from contracts with customers  23   1,098,436    1,215,231    3,146,033    3,102,290 
Cost                       
Cost of construction activities      (630,582)   (542,932)   (1,816,262)   (1,562,079)
Cost of services provided      (238,106)   (227,135)   (610,465)   (627,068)
Cost of real estate and sale of goods      (126,397)   (158,376)   (350,380)   (411,147)
Cost of sales and services  24   (995,085)   (928,443)   (2,777,107)   (2,600,294)
Gross profit      103,351    286,788    368,926    501,996 
Administrative expenses  24   (51,878)   (53,209)   (147,487)   (156,132)
Other income and expenses, net  25   (260,693)   6,208    (264,117)   7,209 
Operating (loss) profit      (209,220)   239,787    (42,678)   353,073 
Financial expenses  26.A   (34,513)   (55,775)   (111,303)   (142,212)
Financial income  26.A   2,173    (2,966)   10,785    23,198 
Interests for present value of financial asset or liability  26.B   (16,564)   (18,652)   (84,829)   1,511 
Share of the profit or loss of associates and joint ventures accounted for using the equity method  14   617    781    1,686    2,437 
(Loss) profit before income tax      (257,507)   163,175    (226,339)   238,007 
Income tax expense  27   (33,895)   (91,858)   (55,063)   (164,271)
(Loss) profit for the period      (291,402)   71,317    (281,402)   73,736 
                        
(Loss) profit attributable to:                       
Controlling interest in the Company      (307,013)   55,139    (322,226)   32,577 
Non-controlling interest      15,611    16,178    40,824    41,159 
       (291,402)   71,317    (281,402)   73,736 
                        
(Loss) profit per share attributable to controlling interest in the Company during the period  31   (0.280)   0.046    (0.295)   0.027 
Diluted (loss) profit per share attributable to controlling interest in the Company during the period  31   (0.256)   0.046    (0.269)   0.027 

 

notes on pages 6 to 55 are an integral part of these interim condensed consolidated financial statements.

 

- 2 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Other Comprehensive Income

For the three-month and nine-month period ended September 30, 2022 and September 30, 2023

 

   For the three-month
period ended
   For the nine-month
period ended
 
   September 30,   September 30, 
In thousands of soles  2022   2023   2022   2023 
(Loss) profit for the period   (291,402)   71,317    (281,402)   73,736 
Other comprehensive income:                    
Items that may be subsequently reclassified to profit or loss                    
Cash flow hedge, net of tax   (163)   -    -    - 
Foreign currency translation adjustment, net of tax   (310)   13,742    (10,083)   22,915 
Exchange difference from net investment in a foreign operation, net of tax   43    (247)   (627)   (168)
Other comprehensive income for the period, net of tax   (430)   13,495    (10,710)   22,747 
Total comprehensive income for the period   (291,832)   84,812    (292,112)   96,483 
Comprehensive income attributable to:                    
Controlling interest in the Company   (307,496)   68,525    (332,865)   55,180 
Non-controlling interest   15,664    16,287    40,753    41,303 
    (291,832)   84,812    (292,112)   96,483 

 

The notes on pages 6 to 55 are an integral part of these interim condensed consolidated financial statements.

 

- 3 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Changes in Equity

For the three and nine-month period ended September 30, 2022 and September 30, 2023

 

      Number of                               Non-     
      shares in       Legal   Voluntary   Share   Other   Retained       controlling     
In thousands of soles  Note  Thousands   Capital   reserve   reserve   premium   reserves   earnings   Total   interest   Total 
Balances as of January 1, 2022      871,918    871,918    132,011    29,974    1,131,574    (68,629)   (893,803)   1,203,045    252,965    1,456,010 
(Loss) profit for the period      -    -    -    -    -    -    (322,226)   (322,226)   40,824    (281,402)
Foreign currency translation adjustment      -    -    -    -    -    (10,016)   -    (10,016)   (67)   (10,083)
Exchange difference from net investment in a foreign operation      -    -    -    -    -    (623)   -    (623)   (4)   (627)
Comprehensive income of the period      -    -    -    -    -    (10,639)   (322,226)   (332,865)   40,753    (292,112)
Transactions with shareholders:                                                     
Dividend distribution  25   -    -    -    -    -    -    -    -    (7,111)   (7,111)
Acquisition of (profit distribution to) non-controlling interests, net      -    -    -    -    -    -    -    -    (29,835)   (29,835)
Capital increase      325,062    325,062    -    -    10,518    -    -    335,580    -    335,580 
Dilution of non-controlling shareholders      -    -    -    -    -    -    2,597    2,597    (6,241)   (3,644)
Total transactions with shareholders      325,062    325,062    -    -    10,518    -    2,597    338,177    (43,187)   294,990 
Balances as of September 30, 2022      1,196,980    1,196,980    132,011    29,974    1,142,092    (79,268)   (1,213,432)   1,208,357    250,531    1,458,888 
Balances as of January 1, 2023      1,196,980    1,196,980    132,011    29,974    1,142,092    (97,191)   (1,342,362)   1,061,504    284,502    1,346,006 
Profit for the period      -    -    -    -    -    -    32,577    32,577    41,159    73,736 
Foreign currency translation adjustment      -    -    -    -    -    22,770    -    22,770    145    22,915 
Exchange difference from net investment in a foreign operation      -    -    -    -    -    (167)   -    (167)   (1)   (168)
Comprehensive income of the period      -    -    -    -    -    22,603    32,577    55,180    41,303    96,483 
Transactions with shareholders:                                                     
Dividend distribution  25   -    -    -    -    -    -    -    -    (73,271)   (73,271)
Acquisition of (profit distribution to) non-controlling interests, net      -    -    -    -    -    -    -    -    (12,178)   (12,178)
Total transactions with shareholders      -    -    -    -    -    -    -    -    (85,449)   (85,449)
Balances as of September 30, 2023      1,196,980    1,196,980    132,011    29,974    1,142,092    (74,588)   (1,309,785)   1,116,684    240,356    1,357,040 

 

The notes on pages 6 to 55 are an integral part of these interim condensed consolidated financial statements.

 

- 4 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Cash Flows

For the three and nine-month period ended September 30, 2022 and September 30, 2023

 

     For the three-month period   For the nine-month period 
     ended September 30,   ended September 30, 
In thousands of soles   Note  2022   2023   2022   2023 
Operating activities                       
(Loss) profit before income tax      (257,507)   163,175    (226,339)   238,007 
Adjustments to profit not affecting cash flows from operating activities:                       
Depreciation  15   19,299    18,176    56,482    53,554 
Amortization of intangible assets  15   26,729    40,054    74,466    115,115 
Impairment (reversal) of inventories      (100)   -    (1)   - 
Impairment of accounts receivable and other accounts receivable      5,780    (188)   5,826    1,992 
Debt condonation      (5,296)   34    (5,296)   (158)
Impairment of property, plant and equipment      (396)   (1,001)   (632)   317 
Impairment of intangible assets      2,403    -    3,064    - 
Reversal of impairment of accounts receivable      (804)   -    (804)   - 
Other provisions      290,899    13,088    312,311    22,210 
Renegotiation of liability for acquisition of non-controlling Morelco      (7,412)   -    (3,706)   - 
Financial expense,net      73,037    85,336    142,493    132,133 
Impairment of investment      7,767    -    7,767    - 
Share of the profit and loss of associates and joint ventures accounted for using the equity method  14. A and B   (617)   (781)   (1,686)   (2,437)
Reversal of provisions      1,912    (14,032)   (1,720)   (18,758)
Disposal (reversal) of assets      (1,572)   (4,191)   (1,566)   (5,449)
Profit on sale of property, plant and equipment      (2,525)   (4,729)   (3,163)   (3,848)
Loss (profit) on remeasurement of accounts receivable and accounts payable      23,433    18,811    93,636    (1,511)
Net variations in assets and liabilities:                       
Trade accounts receivable      (118,992)   (71,526)   (146,825)   (69,806)
Other accounts receivable      (46,602)   15,180    (123,324)   (880)
Other accounts receivable from related parties      (20,710)   (1,431)   (4,234)   (8,744)
Inventories      (14,373)   (3,542)   (4,490)   (49,636)
Prepaid expenses and other assets      24,575    9,508    20,119    (6,182)
Trade accounts payable      95,261    131,810    33,845    123,011 
Other accounts payable      (7,013)   (215,306)   (37,080)   (68,143)
Other accounts payable to related parties      (1,985)   (2,469)   (4,485)   (8,084)
Other provisions      (4,278)   (2,676)   (34,275)   (7,636)
Interest paid      (41,106)   (39,800)   (103,817)   (119,332)
Payments for purchases of intangible assets - Concessions      -    (3,681)   -    (3,681)
Income tax paid      (23,949)   (28,002)   (100,281)   (116,476)
Net cash provided by (applied to) operating activities      15,858    101,817    (53,715)   195,578 
Investing activities                       
Proceeds from sale of property, plant and equipment      3,308    5,811    8,187    6,854 
Interest received      4,776    9,219    8,710    23,001 
Dividends received      380    1,523    380    5,175 
Acquisition of investment property      (42)   (12)   (53)   (14)
Acquisition of intangible assets      (57,663)   (13,522)   (101,952)   (98,896)
Acquisition of property, plant and equipment      (17,737)   (25,315)   (41,049)   (47,626)
Net cash applied to investing activities      (66,978)   (22,296)   (125,777)   (111,506)
Financing activities                       
Borrowing received      25,019    40,299    489,069    211,365 
Amortization of borrowings received      (25,286)   (86,324)   (187,232)   (191,117)
Amortization of bonds issued      (15,209)   (17,514)   (42,046)   (51,359)
Payment for debt transaction costs      (5)   (6)   (13,737)   (23)
Dividends paid to non-controlling interest      (9,551)   (22,536)   (18,606)   (69,580)
Cash received (return of contributions) from non-controlling shareholders      (7,000)   (2,289)   (29,835)   (12,178)
Net cash (applied to) provided by financing activities      (32,032)   (88,370)   197,613    (112,892)
(Net decrease) net increase in cash      (83,152)   (8,849)   18,121    (28,820)
Exchange difference      13,957    6,239    22,951    (119)
Cash and cash equivalents at the beginning of the period      1,067,445    891,225    957,178    917,554 
Cash and cash equivalents at the end of the period  9   998,250    888,615    998,250    888,615 
Non-cash transactions:                       
Capitalization of interests      674    271    1,172    561 
Acquisition of right-of-use assets      5,960    (1,530)   14,578    6,458 
Capitalization of convertible bonds  21   -    -    335,580    - 

 

The notes on pages 6 to 55 are an integral part of these interim condensed consolidated financial statements.

 

- 5 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

1.General Information

 

A. Incorporation and operations

 

AENZA S.A.A. (hereinafter the “Company” or “AENZA”) is the parent Company of the AENZA Corporation, which comprise the Company and its subsidiaries (hereinafter, the “Corporation”) and is mainly engaged in holding investments in its subsidiaries. Additionally, the Company provides services of strategic and functional advice and office leases space to the Corporation companies. The Company registered office is at Av. Petit Thouars N° 4957, Miraflores, Lima.

 

The Corporation is a conglomerate of companies with operations including different business activities, the most significant are engineering and construction, energy, infrastructure (public concession ownership and operation) and real estate businesses. See details of operating segments in Note 7.

 

B. Authorization for Financial Statements Issuance

 

The interim condensed consolidated financial statements for the period ended September 30, 2023 have been prepared and issued with authorization of Management and approved by the Board of Directors on October 31, 2023.

 

The consolidated financial statements for the year ended December 31, 2022 were prepared and issued with the authorization of Management and approved by the Board of Directors on May 15, 2023 and were approved by the General Shareholders’ Meeting on June 12, 2023.

 

C. Compliance with laws and regulations

 

As a result of the investigations into the cases known as Club de la Construccion and Lava Jato, AENZA has entered into an effective collaboration process. On September 15, 2022, the Agreement was entered into between the Public Prosecutor’s Office, the Attorney General’s Office and the Company, whereby AENZA accepted they were utilized by certain former executives to commit illicit acts in a series of periods until 2016 and committed to pay a civil penalty to the Peruvian Government of approximately S/488 million (approximately S/333.3 million and US$ 40.7 million). The Agreement was homologated by judgment dated August 11, 2023.

 

According to the Agreement, payment shall be made within twelve (12) years at a legal interest rate in soles and dollars (3.9% and 1.8% annual interest as of September 30, 2023, respectively). The Company also undertakes to establish a series of guarantees after the approval of the Agreement, composed of i) a trust agreement that includes shares issued by a subsidiary of the Company, ii) mortgage on a property owned by the Company, and iii) a guarantee account with funds equivalent to the annual installment for the following year. Among other conditions, the Agreement includes a restriction for AENZA and subsidiaries Cumbra Peru S.A. and Unna Transporte S.A.C. to participate in public infrastructure and construction, and road maintenance contracts for two (2) years from the approval of the Agreement. The other member companies of the Corporation are not subject to any impediment or prohibition to contract with the Peruvian Government.

 

As of September 30, 2023, the Company maintains in its financial statements the total liability associated to the Agreement for S/488 million (As of December 31, 2022, the balance was S/488.9 million) (see Note 19.a).

 

2.Basis of preparation

 

The interim condensed consolidated financial statements for the period ended September 30, 2023 have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The interim condensed consolidated financial statements provide comparative information regarding prior year; however, they do not include all the information and disclosures required in the consolidated financial statements, so they must be read together with the annual consolidated financial statements, which have been prepared in accordance with International Standards of Financial Information (hereinafter “IFRS”). The interim condensed consolidated financial statements are presented in thousands of Peruvian Soles, unless otherwise stated.

 

Management continues to have a reasonable expectation that the Corporation has adequate resources to continue in operation for a reasonable period of time and that the going concern basis of accounting remains appropriate. Management believes that there are no material uncertainties that may cause significant doubt about this assumption, and that there is a reasonable expectation that the Corporation has adequate resources to continue operations for the expected future, and not less than 12 months from the end of the reporting period.

 

- 6 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

A. Immaterial corrections of previously reported balances as of September 30, 2022

 

In connection with the preparation of its consolidated financial statements, the Corporation identified an error in the interpretation and application of the accounting treatment of revenue and cost recognition arising from contracts with customers in the engineering and construction segment in prior periods. Management of the Corporation has evaluated and concluded that the correction of this error has resulted in non-material adjustment to the net income previously reported in the interim condensed consolidated financial statements as of September 30, 2022. It should be noted that the aforementioned adjustments had no impact on total cash flows from operating, investing or financing activities. A reconciliation between the previously reported amounts and the revised amounts as of September 30, 2022, and for the period then ended is presented below:

 

Interim Condensed Consolidated Statement of Financial Position:

 

   As of September 30,
2022
 
In thousands of soles  Reported   Adjustment   Revised 
ASSETS            
Current assets            
Trade accounts receivables, net   763,642    191,956(a)   955,598 
Work in progress, net   207,938    (207,938)(b)   - 
Other current assets   1,877,222    -    1,877,222 
Total current assets   2,848,802    (15,982)   2,832,820 
                
Non-current assets               
Deferred tax asset   299,744    (7,203)(c)   292,541 
Other non-current assets   2,931,635    -    2,931,635 
Total non-current assets   3,231,379    (7,203)   3,224,176 
Total assets   6,080,181    (23,185)   6,056,996 
                
LIABILITIES AND EQUITY               
Current liabilities               
Trade accounts payable   975,449    (35,572)(b)   939,877 
Current income tax   22,102    (2,003)(c)   20,099 
Other provisions   117,540    5,296(b)   122,836 
Other current liabilities   1,569,465    -    1,569,465 
Total current liabilities   2,684,556    (32,279)   2,652,277 
                
Non-current liabilities               
Other non-current liabilities   1,945,831    -    1,945,831 
Total non-current liabilities   1,945,831    -    1,945,831 
Total liabilities   4,630,387    (32,279)   4,598,108 
                
Equity               
Equity attributable to controlling interest in the Company   1,198,866    9,491    1,208,357 
Non-controlling interest   250,928    (397)   250,531 
Total equity   1,449,794    9,094    1,458,888 
Total liabilities and equity   6,080,181    (23,185)   6,056,996 

 

- 7 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

Interim Condensed Consolidated statements of profit or loss:

 

   For the three-month
period ended
   For the nine-month
period ended
 
   September 30, 2022   September 30, 2022 
In thousands of soles  Reported   Adjustment   Revised   Reported   Adjustment   Revised 
Revenue                        
Revenue from construction activities   625,168    17,387(a)   642,555    1,925,218    (34,030)(a)   1,891,188 
Revenue from services provided   282,224    -    282,224    778,716    -    778,716 
Revenue from real estate and sale of goods   173,657    -    173,657    476,129    -    476,129 
Total revenue from ordinary activities arising from contracts with customers   1,081,049    17,387    1,098,436    3,180,063    (34,030)   3,146,033 
Cost                              
Cost of construction activities   (610,489)   (20,093)(b)   (630,582)   (1,876,399)   60,137(b)   (1,816,262)
Cost of services provided   (251,957)   13,851(b)   (238,106)   (640,028)   29,563(b)   (610,465)
Cost of real estate and sale of goods   (126,397)   -    (126,397)   (350,380)   -    (350,380)
Cost of sales and services   (988,843)   (6,242)   (995,085)   (2,866,807)   89,700    (2,777,107)
Gross profit   92,206    11,145    103,351    313,256    55,670    368,926 
Administrative expenses   (39,156)   (12,722)   (51,878)   (108,931)   (38,556)   (147,487)
Other income and expenses, net   (258,458)   (2,235)   (260,693)   (256,075)   (8,042)   (264,117)
Operating (loss) profit   (205,408)   (3,812)   (209,220)   (51,750)   9,072    (42,678)
Financial expenses   (59,939)   -    (59,939)   (207,044)   (1,035)   (208,079)
Financial income   8,800    2,235    11,035    18,950    3,782    22,732 
Share of the profit or loss of associates and joint ventures accounted for using the equity method   617    -    617    1,686    -    1,686 
(Loss) profit before income tax   (255,930)   (1,577)   (257,507)   (238,158)   11,819    (226,339)
Income tax expense   (35,077)   1,182(c)   (33,895)   (52,669)   (2,394)(c)   (55,063)
(Loss) profit for the period   (291,007)   (395)   (291,402)   (290,827)   9,425    (281,402)
                               
(Loss) profit attributable to:                              
Controlling interest in the Company   (306,777)   (236)   (307,013)   (331,544)   9,318    (322,226)
Non-controlling interest   15,770    (159)   15,611    40,717    107    40,824 
    (291,007)   (395)   (291,402)   (290,827)   9,425    (281,402)
                               
Loss per share attributable to controlling interest in the Company during the period   (0.271)   (0.009)   (0.280)   (0.294)   (0.001)   (0.295)
                               
Comprehensive income attributable to:                              
Controlling interest in the Company   (307,559)   63    (307,496)   (339,127)   6,262    (332,865)
Non-controlling interest   15,645    19    15,664    40,665    88    40,753 
    (291,914)   82    (291,832)   (298,462)   6,350    (292,112)

 

Segment information by geographic area:

 

   For the three-month
period ended
   For the nine-month
period ended
 
   September 30, 2022   September 30, 2022 
In thousands of soles  Reported   Adjustment   Revised   Reported   Adjustment   Revised 
Revenue                        
Peru   908,671    (5,470)   903,201    2,502,942    2,837    2,505,779 
Chile   134,906    22,723    157,629    592,520    (36,841)   555,679 
Colombia   37,472    134    37,606    84,601    (26)   84,575 
    1,081,049    17,387    1,098,436    3,180,063    (34,030)   3,146,033 

 

- 8 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

As a result of this process, the balances in the interim condensed consolidated statement of cash flows were revised as follows:

 

   For the three-month
period ended
   For the nine-month
period ended
 
   September 30,   September 30, 
In thousands of soles  Reported   Adjustment   Revised   Reported   Adjustment   Revised 
                         
Operating activities                        
(Loss) profit before income tax   (255,930)   (1,577)   (257,507)   (238,158)   11,819    (226,339)
Adjustments to profit not affecting cash flows from operating activities:                              
Other adjustments   432,537    -    432,537    677,471    -    677,471 
Net variations in assets and liabilities:                              
Trade accounts receivable and working in progress   (130,784)   11,792    (118,992)   (98,096)   (48,729)   (146,825)
Other accounts receivable   (60,922)   14,320    (46,602)   (126,360)   3,036    (123,324)
Trade accounts payable   120,274    (25,013)   95,261    1,476    32,369    33,845 
Other accounts payable   (7,491)   478    (7,013)   (34,005)   (3,075)   (37,080)
Other provisions   (4,278)   -    (4,278)   (38,855)   4,580    (34,275)
Other variations   (77,548)   -    (77,548)   (197,188)   -    (197,188)
Net cash provided by (applied to) operating activities   15,858    -    15,858    (53,715)   -    (53,715)
Investing activities                              
Net cash applied to investing activities   (66,978)   -    (66,978)   (125,777)   -    (125,777)
Financing activities                              
Net cash (applied to) provided by financing activities   (32,032)   -    (32,032)   197,613    -    197,613 
(Net decrease) net increase in cash   (83,152)   -    (83,152)   18,121    -    18,121 
Exchange difference   13,957    -    13,957    22,951    -    22,951 
Cash and cash equivalents at the beginning of the period   1,067,445    -    1,067,445    957,178    -    957,178 
Cash and cash equivalents at the end of the period   998,250    -    998,250    998,250    -    998,250 
Non-cash transactions:                              
Capitalization of convertible bonds   -    -    -    335,580    -    335,580 
Acquisition of right-of-use assets   5,960    -    5,960    14,578    -    14,578 
Capitalization of interests   674    -    674    1,172    -    1,172 

 

(a) Revenue from engineering and construction contracts is recognized over time as the Corporation fulfills its obligations, as there is a continuous transfer of control of the deliverable to the customer and revenue is recognized using the percentage-of-completion method for each contract through the date of the consolidated financial statements.

 

Revenue from additional work resulting from a modification or instruction received from the customer to make a change in the scope of work, price, or both will result in an increase in contract revenue which is also recognized using the percentage-of-completion method when the Corporation concludes that it is highly probable that there will not be a significant reversal of such revenue. Before the immaterial correction, the Corporation recognized a lower proportion of this additional revenue at the date of the consolidated financial statements depending on the status or stage in the process of obtaining formal, written approval for the additional work. After the immaterial correction, the Corporation recognized additional revenue based on the percentage of completion of the additional work, as long as the Corporation can conclude from its dealings with its clients that it is highly probable that there will not be a significant reversal of such revenue.

 

(b) Before the immaterial correction, the Corporation presented the net position of construction contracts as either an asset or a liability. The contract was considered an asset when the gross margin earned at the measurement date was less than the Corporation’s estimated gross margin at contract completion. This asset was presented as “Work in progress”. If the gross margin obtained was greater than the estimated gross margin at completion, it was presented as a liability under “Accounts payable - Provision for estimated contract costs” by stage of completion, both with an effect on the cost of construction activities account.

 

In order to correct the immaterial error, the Corporation reversed the balances of the work in progress account from assets and the provision for construction contract costs from liabilities, recognized the costs incurred in the consolidated statement of profit or loss.

 

(c) Corresponds to the recognition of the tax effects related to the adjustments described in (a) and (b) above.

 

- 9 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

3.Summary of Significant Accounting Policies

 

The accounting policies used in the preparation of these interim condensed consolidated financial statements are consistent with those applied in the preparation of the consolidated financial statements as of December 31, 2022.

 

Standards, amendments, and interpretation adopted by the Corporation

 

Standards, amendments and interpretation that have entered in force as of January 1, 2023, have not had impact on the interim condensed consolidated financial statements as of September 30, 2023, and for this reason they have not been disclosed. The Corporation has not adopted in advance any amendment and modification that are not yet effective.

 

4.Financial Risk Management

 

The Corporation’s Management is responsible for managing financial risks. The corporation Management manages the general administration of financial risks such risks include currency risk, price risk, fair-value and cash-flow interest rate risks, credit risk, the use of derivative and non-derivative financial instruments, and investment of liquidity surplus, as well as financial risks; all of which are regularly supervised and monitored.

 

A.Financial risk factors

 

The Corporation’s activities expose it to a variety of financial risks: market risks (including currency risk, price risk, fair-value and cash-flow interest rate risks), credit risk, and liquidity risk.

 

The Corporation’s general program for risk management is mainly focused on financial market unpredictability and seeks to minimize potential adverse effects on the Corporation’s financial performance.

 

a)Market risks

 

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices. Market prices involve four types of risk: interest rate risk, exchange rate risk, commodity price risk and other price risks. Financial instruments affected by market risk include bank deposits, trade accounts receivable, other accounts receivable, other financial liabilities, bonds, trade accounts payable, other accounts payable and accounts receivable from and payable to related parties.

 

i)Currency risk

 

Foreign exchange risk is the risk that the fair value of future cash flows of a financial instrument will be reduced by adverse fluctuations in exchange rates. Management is responsible for identifying, measuring, controlling and reporting the exposure to foreign exchange risk.

 

The Corporation is exposed to foreign exchange risk arising from local transactions in foreign currencies and from its foreign operations. As of December 31, 2022 and as of September 30, 2023, this exposure is focused mainly on fluctuations of the U.S. dollar, Chilean peso, and Colombian peso. The Corporation’s management monitors this risk by analyzing the country’s macroeconomic variables.

 

The balances of financial assets and liabilities denominated in foreign currencies correspond to balances in U.S. Dollars, Chilean pesos and Colombian pesos, which are stated exchange rate published on that date, according to the currency type:

 

   As of
December 31,
   As of
September 30,
 
   2022   2023 
   Suppley   Demand   Suppley   Demand 
U.S. Dollars (a)   3.808    3.820    3.790    3.797 
Chilean Peso (b)   0.004449    0.004463    0.004232    0.004240 
Colombian Peso (c)   0.000792    0.000794    0.000935    0.000937 

 

(a)U.S. DolLar as published by the Superintendencia de Bancos, Seguros y Administradoras de Fondos de Pensiones (hereinafter “SBS”).
  
(b)Chilean peso as published by the Banco Central de Chile.
  
(c)Colombian peso as published by Banco de la Republica de Colombia.

 

- 10 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

The consolidated statement of financial position includes the following:

 

   As of   As of 
   December 31,   September 30, 
In thousands of US dollars  2022   2023 
Assets        
Cash and cash equivalents   58,280    76,142 
Trade accounts receivable, net   124,593    188,696 
Accounts receivable from related parties   142,435    145,347 
Other accounts receivable   75,536    87,713 
    400,844    497,898 
           
Liabilities          
Borrowings   (215,076)   (240,424)
Bonds   (5,569)   (4,466)
Trade accounts payable   (119,104)   (146,144)
Accounts payable to related parties   (3,171)   (3,171)
Other accounts payable   (88,012)   (78,129)
Other provisions   (42,241)   (2,039)
    (473,173)   (474,373)

 

The Corporation assumes foreign exchange risk because it does not use derivative financial instruments to mitigate exchange rate fluctuations.

 

For the periods ended September 30, 2022 and 2023, the Corporation’s exchange gains and losses for the exposure of U.S. Dollar, the Chilean peso and the Colombian peso against the Peruvian Sol was:

 

   For the nine-month
period ended
 
   September 30, 
In thousands of soles  2022   2023 
Gain   425,168    88,179 
Loss   (423,093)   (102,794)
    2,075    (14,615)

 

The consolidated statement of changes in equity comprises a foreign currency translation adjustment originated by its subsidiaries. The consolidated statement of financial position includes the following assets and liabilities in its currency (in thousands):

 

   As of
December 31,
   As of
September 30,
 
   2022   2023 
   Assets   Liabilities   Assets   Liabilities 
Chilean Peso   60,684,971    81,864,810    50,408,562    63,043,767 
Colombian Peso   96,944,436    59,114,296    174,814,614    93,177,194 

 

The Corporation’s foreign currency translation adjustment for the nine-month period ended September 30, 2023 was positive by S/22.9 million (negative by S/10.1 million for the same period in 2022).

 

- 11 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

ii)Price risk

 

The Corporation is exposed to the risk of hydrocarbon price fluctuations which impacts on the selling price of the products that it commercializes, which are significantly affected by changes in global economic conditions, resource availability, and the cycles of related industries. Management considers reasonable these possible fluctuations in the hydrocarbons prices, based in the Corporation´s economic market environment.

 

iii)Fair-value and cash flow interest rate risk

 

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.

 

The Corporation’s interest rate risk arises mainly from its long-term borrowings. Variable rate long-term financial liabilities expose the Corporation to cash-flow interest rate risk. Fixed-rate financial liabilities expose the Corporation to fair-value interest rate risk.

 

The Corporation assumes the interest rate risk, due to they do not use financial derivative instruments for mitigate variations in the interest rate risk.

 

b)Credit risk

 

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or commercial contract, resulting in a financial loss.

 

Credit risk for the Corporation arises from its operating activities due to credit exposure to customers and from its financial activities, including deposits with banks and financial institutions, foreign exchange transactions, and other financial instruments. The maximum exposure to credit risk for the consolidated financial statements as of December 31, 2022 and as of September 30, 2023 is represented by the sum of cash and cash equivalents (Note 9), trade accounts receivable (Note 10), accounts receivable from related parties (Note 11) and other accounts receivable (Note 12).

 

Customer credit risk is managed by Management subject to the Corporation’s established policies, procedures and control related to customer credit risk management. The credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined based on this assessment. The maximum credit risk exposure at the reporting date is the carrying value of each class of financial assets disclosed in Note 10.

 

The Corporation assesses the concentration of risk with respect to trade accounts receivable as low risk because sales are not concentrated in small customer groups and no customers account for 10% or more of the Corporation’s revenues.

 

Management monitors the credit risk of other receivables on an ongoing basis and assesses those receivables that show evidence of impairment to determine the required allowance for doubtful accounts.

 

Concerning loans to related parties, the Corporation has measures in place to ensure the recovery of these loans through the controls maintained by Corporate Finance Management and the performance evaluation conducted by the Board of Directors (Note 11).

 

Management does not expect the Corporation to incur in losses arisen from the performance of these counterparties, except for the ones already recorded at the consolidated financial statements.

 

- 12 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

c)Liquidity risk

 

Prudent liquidity risk management implies holding enough cash and cash equivalent, and financing available through a proper number of credit sources, and the ability to close positions in the market. Historically, the Corporation’s cash flows from operations have enabled it to meet its obligations. The Corporation has implemented various actions to reduce its exposure to liquidity risk and has developed a Financial Plan based on several steps, which were designed with a commitment to compliance within a reasonable period of time. The Financial Plan is intended to meet the various obligations at the Company and Corporation entities levels.

 

The Corporate Finance Office monitors the cash flow projections made on liquidity requirements of the Corporation to ensure it exists sufficient cash to meet operational needs so that the Corporation does not breach borrowing limits or covenants, where applicable, on any of its borrowing facilities. Less significant financing transactions are controlled by the Finance Management of each subsidiary.

 

Such forecasting takes into consideration the Corporation’s debt financing plans, covenant compliance, compliance with ratio targets in the statement of financial position and, if applicable, with external regulatory or legal requirements.

 

As of September 30, 2023, the Company has significant current payment obligations arising from the Plea Agreement (Note 1.C) and the Bridge Loan (Note 16.A.i). For this purpose, Management is developing a financial plan with the aim of covering the short-term part of these obligations.

 

Cash surplus on the amounts required for the administration of working capital are invested in checking accounts that generate interest and time deposits, selecting instruments with appropriate maturities or sufficient liquidity.

 

The table below analyzes the Corporation’s financial liabilities grouped according to the remaining period from the date of the statement of financial position to the date of maturity. The amounts disclosed in the table below are the contractual undiscounted cash flows, which include interest to be accrued according to the established schedule.

 

       Contractual cash flows 
   Carrying   Less than   1-2   2-5   More than     
In thousands of soles  amount   1 year   years   years   5 years   Total 
As of December 31, 2022                        
Other financial liabilities (except for finance leases and lease  liability for right-of-use asset)   819,973    599,310    71,732    216,392    -    887,434 
Finance leases   835    873    -    -    -    873 
Lease liability for right-of-use asset   59,085    19,075    31,705    23,386    113    74,279 
Bonds   869,913    141,246    185,114    419,969    707,800    1,454,129 
Trade accounts payables (except non-financial liabilities)   1,037,013    1,027,256    9,757    -    -    1,037,013 
Accounts payables to related parties   80,781    53,488    25,420    697    1,176    80,781 
Other accounts payables and other provisions (except non-financial liabilities)   712,071    186,326    64,307    89,868    470,129    810,630 
    3,579,671    2,027,574    388,035    750,312    1,179,218    4,345,139 

 

- 13 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

           Contractual cash flows 
   Carrying   Less than   1-2   2-5   More than     
In thousands of soles  amount   1 year   years   years   5 years   Total 
As of September 30, 2023                        
Other financial liabilities (except lease  liability for right-of-use asset)   897,934    613,831    170,664    193,629    -    978,124 
Lease liability for right-of-use asset   51,329    19,636    27,346    13,787    75    60,844 
Bonds   836,054    144,563    180,663    372,037    674,622    1,371,885 
Trade accounts payables (except non-financial liabilities)   1,159,863    1,153,391    6,472    -    -    1,159,863 
Accounts payables to related parties   76,556    48,313    28,243    -    -    76,556 
Other accounts payables and other provisions (except non-financial liabilities)   711,455    195,714    71,921    87,603    488,296    843,534 
    3,733,191    2,175,448    485,309    667,056    1,162,993    4,490,806 

 

B.Capital management

 

The Corporation’s objective in managing capital is to safeguard its ability to continue operations as a going concern basis in order to generate returns to its shareholders, benefits to stakeholders and keep an optimal capital structure to reduce capital cost. Since 2017, due to the situation of the Corporation, Management has monitored deviations that might cause the non-compliance of covenants and may renegotiation of liabilities (Note 16.a). In special situations and events, the Corporation identifies potential deviations, requirements and establishes a plan.

 

The Corporation may adjust the amount of dividends payable to shareholders, return capital to shareholders, issue new shares or sell assets to reduce its debt to maintain or adjust the capital structure.

 

The Corporation monitors its capital based on the leverage ratio. This ratio is calculated as net debt divided by the sum of net debt plus equity. The net debt corresponds to the total financial liabilities (including current and non-current indebtedness) adding the provision for civil compensation less cash and cash equivalents.

 

As of December 31, 2022 and as of September 30, 2023, the leverage ratio is as follows:

 

      As of   As of 
      December 31,   September 30, 
In thousands of soles  Note  2022   2023 
Total borrowing, bonds and civil compensation (*)  16 and 17   2,238,699    2,273,274 
Less: Cash and cash equivalents  9   (917,554)   (888,615)
Net debt (a)      1,321,145    1,384,659 
Total equity (b)      1,346,006    1,357,040 
Total net debt plus equity (a) + (b)      2,667,151    2,741,699 
Gearing ratio      0.50    0.51 

 

(*)The civil compensation to the Peruvian State is S/488 million as of September 31, 2023 (S/4889 as of December 31, 2022).

 

During the periods ended December 31, 2022 and as of September 30, 2023, there were no changes in the objectives, policies or processes related to capital management.

 

- 14 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

5.Critical Accounting Estimates and Judgments

 

Estimates and judgments used are continuously evaluated and are based on historical experience among other factors, including expectations of future events that are believed to be reasonable under current circumstances.

 

In preparing these interim condensed consolidated financial statements, the significant judgements made by management in applying Corporation’s accounting policies and the key sources of uncertainty were the same as those that applied to the consolidated financial statements for the year ended December 31, 2022.

 

6.Seasonality of Operations

 

The Corporation does not present seasonality in the operations of any of its subsidiaries; and develop its business during the normal course of the period.

 

7.Operating Segments

 

Operating segments are reported consistently with the internal reports that are reviewed by Corporation’s, chief decision-maker; that is the Executive Committee, which is led by the Chief Executive Officer. This Committee acts as the highest authority in making operational decisions, responsible for allocating resources and evaluating the performance of each operating segment.

 

As set forth under IFRS 8, reportable segments by significance of income are: ‘engineering and construction’, ‘energy’ and ‘infrastructure’. However, Management has voluntarily decided to report on all its operating segments.

 

The Corporation has identified four reportable segments. These operating segments are components of an enterprise for which separate financial information is available and periodically evaluated by the Corporate Governance Board to decide how to allocate resources and assess performance.

 

Corporation’s operating segments are assessed by the activities of the following business units: (i) engineering and construction, (ii) energy, (iii) infrastructure, and (iv) real estate.

 

The operations of Corporation in each reportable segment are as follows:

 

(a)Engineering and construction: This segment includes traditional engineering services such as architectural planning, structural, civil and design engineering for advanced specialties including process design, simulation, and environmental services, as well as construction at three divisions: i) civil works, such as the construction of hydroelectric power stations and other large infrastructure facilities; (ii) electromechanical construction, such as concentrator plants, oil and natural gas pipelines, and electric transmission lines; iii) building construction, such as offices, residential buildings, hotels, and affordable housing projects, shopping centers, and industrial facilities.

 

(b)Energy: This segment includes oil exploration, exploitation, production, treatment, and trade in four oil deposits, separation and trade of natural gas and its byproducts at the gas processing plant, as well as the construction and assembly of oil facilities or those linked to the oil and gas industry. It also includes storage and dispatch of fuel and oil byproducts.

 

(c)Infrastructure: The Corporation has long-term concessions or similar contractual arrangements in Peru for three highways with tolls, Lima Metro, a sewage treatment plant in Lima, and operation and maintenance services for infrastructure assets.

 

(d)Real Estate: The Corporation mainly develops and sells properties for low- and middle-resource sectors, which are experiencing a significant increase in available income, as well as luxury properties to a lesser degree. It also develops commercial spaces and offices.

 

- 15 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

Management uses the Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) as the primary relevant measure to understand the Corporation’s operating performance and allocate resources and its operating segments.

 

Adjusted EBITDA is not a measurement of results based on International Financial Reporting Standards. The Corporation’s definition related to adjusted EBITDA may not be comparable to similar performance measures and disclosures from other entities.

 

The adjusted EBITDA is reconciled to profit as follows:

 

   For the three-month
period ended
   For the nine-month
period ended
 
   September 30,   September 30, 
In thousands of soles  2022   2023   2022   2023 
Net (loss) profit   (291,402)   71,317    (281,402)   73,736 
Financial income and expenses   32,340    58,741    100,518    119,014 
Interests for present value of financial asset or
 liability
   16,564    18,652    84,829    (1,511)
Income tax   33,895    91,858    55,063    164,271 
Depreciation and amortization   46,028    58,228    130,948    168,667 
Adjusted EBITDA   (162,575)   298,796    89,956    524,177 
Adjustments to adjusted EBITDA for Other items                    
Impairment of accounts receivables and other accounts receivable   7,349    -    7,349    - 
Impairment of investments   7,489    -    7,489    - 
Impairment of goodwill   2,403    -    2,403    - 
Provisions: civil compensation and legal claims   244,708    -    244,708    - 
Adjusted EBITDA for other items   99,374    298,796    351,905    524,177 

 

The adjusted EBITDA per segment is as follows:

 

   For the three-month
period ended
   For the nine-month
period ended
 
   September 30,   September 30, 
In thousands of soles  2022   2023   2022   2023 
Engineering and construction   (24,317)   140,217    (1,779)   110,836 
Energy   53,517    66,683    135,945    167,524 
Infrastructure   61,550    76,861    191,100    195,575 
Real estate   11,222    11,560    32,469    42,705 
Parent company operations   55,020    103,819    105,847    103,676 
Intercompany eliminations   (57,618)   (100,344)   (111,677)   (96,139)
    99,374    298,796    351,905    524,177 

 

Inter-segmental sales transactions are entered into prices similar to those that would have been agreed with unrelated third parties. Revenues from external customers reported are measured in a consistent manner under the basis for preparation of the consolidated financial statements. Sales of goods are related to real estate segment. Revenues from services are related to other segments.

 

Corporation sales and receivables are not concentrated on a few customers. There is no external customer that represents 10% or more of Corporation’s revenue.

 

- 16 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

Operating segments financial position

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction
   Energy   Toll roads   Transportation   Water
treatment
   Realestate   Company
operations
   Eliminations   Consolidated 
As of December 31, 2022                                    
Assets                                    
Cash and cash equivalent   209,737    104,553    130,213    171,747    2,910    111,487    186,907    -    917,554 
Trade accounts receivables, net   697,512    80,245    34,183    118,867    898    146,316    561    -    1,078,582 
Accounts receivable from related parties   86,146    68    51,523    4,455    52    378    115,736    (230,613)   27,745 
Other accounts receivable   298,784    39,921    28,902    15,229    30    5,380    7,294    (2,345)   393,195 
Inventories, net   41,933    29,935    9,655    39,780    -    227,067    -    (1,587)   346,783 
Prepaid expenses   10,945    2,055    5,496    369    160    448    8,625    -    28,098 
Total current assets   1,345,057    256,777    259,972    350,447    4,050    491,076    319,123    (234,545)   2,791,957 
Long-term trade accounts receivable, net   2,806    -    16,215    699,487    1,392    3,969    -    -    723,869 
Long-term accounts receivable from related parties   299,268    -    15,858    42    14,015    -    602,004    (388,795)   542,392 
Prepaid expenses   -    826    14,549    1,731    632    -    65    (510)   17,293 
Other long-term accounts receivable   101,366    89,782    -    -    7,346    55,347    31,889    -    285,730 
Inventories, net   -    -    -    -    -    65,553    -    -    65,553 
Investments in associates and joint ventures   975    12,049    -    -    -    2,752    1,509,790    (1,510,650)   14,916 
Investment property, net   -    -    -    1,507    -    19,823    40,594    -    61,924 
Property, plant and equipment, net   102,822    176,596    6,193    848    150    7,531    1,286    (10,961)   284,465 
Intangible assets, net   131,431    363,066    274,597    238    -    615    13,414    3,975    787,336 
Right-of-use assets, net   8,745    12,795    7,106    23    143    2,580    38,485    (19,670)   50,207 
Deferred income tax asset   175,702    4,572    26,787    -    415    23,781    59,316    5,065    295,638 
Total non-current assets   823,115    659,686    361,305    703,876    24,093    181,951    2,296,843    (1,921,546)   3,129,323 
Total assets   2,168,172    916,463    621,277    1,054,323    28,143    673,027    2,615,966    (2,156,091)   5,921,280 
Liabilities                                             
Borrowings   19,191    38,612    3,844    17    6    43,118    480,735    (11,261)   574,262 
Bonds   4,554    -    41,343    31,203    -    -    -    -    77,100 
Trade accounts payable   740,142    124,259    52,916    52,292    223    35,939    16,950    4,535    1,027,256 
Accounts payable to related parties   297,505    2,734    46,257    22,421    296    12,227    20,291    (348,243)   53,488 
Current income tax   12,495    247    8,609    2,433    104    45,092    672    -    69,652 
Other accounts payable   490,494    19,724    49,187    9,146    1,298    115,661    24,837    (4,905)   705,442 
Provisions   81,288    20,535    1,722    1,197    -    540    27,644    -    132,926 
Total current liabilities   1,645,669    206,111    203,878    118,709    1,927    252,577    571,129    (359,874)   2,640,126 
Borrowings   6,480    100,597    3,462    -    138    10,852    192,435    (8,333)   305,631 
Long-term bonds   16,719    -    177,341    598,753    -    -    -    -    792,813 
Long-term trade accounts payable   -    -    -    9,757    -    -    -    -    9,757 
Other long-term accounts payable   94,261    -    2,243    189    2,932    -    2,694    -    102,319 
Long-term accounts payable to related parties   7,886    57,300    1,176    27,294    21,663    -    189,451    (277,477)   27,293 
Provisions   11,453    49,701    11,463    4,947    -    -    491,463    -    569,027 
Deferred income tax liability   16,670    53,242    -    58,396    -    -    -    -    128,308 
Total non-current liabilities   153,469    260,840    195,685    699,336    24,733    10,852    876,043    (285,810)   1,935,148 
Total liabilities   1,799,138    466,951    399,563    818,045    26,660    263,429    1,447,172    (645,684)   4,575,274 
Equity attributable to controlling interest in the Company   363,404    417,970    166,678    177,208    1,483    278,501    1,165,811    (1,509,551)   1,061,504 
Non-controlling interest   5,630    31,542    55,036    59,070    -    131,097    2,983    (856)   284,502 
Total liabilities and equity   2,168,172    916,463    621,277    1,054,323    28,143    673,027    2,615,966    (2,156,091)   5,921,280 

 

- 17 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2022 and September 30, 2023 and 2022

 

Operating segments financial position

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction
   Energy   Toll roads   Transportation   Water
treatment
   Real estate   Company operations   Eliminations   Consolidated 
As of September 30, 2023                                    
Assets                                    
Cash and cash equivalent   197,953    39,288    130,440    135,694    3,119    199,729    182,392    -    888,615 
Trade accounts receivables, net   845,322    105,788    26,412    125,279    960    2,621    924    -    1,107,306 
Accounts receivable from related parties   74,894    506    60,812    3,578    494    537    326,354    (432,296)   34,879 
Other accounts receivable   331,051    29,264    27,927    13,416    -    10,458    5,383    (2,345)   415,154 
Inventories, net   58,006    41,865    10,341    45,042    -    238,692    -    (14)   393,932 
Prepaid expenses   17,861    3,431    5,796    697    265    86    10,756    1    38,893 
Total current assets   1,525,087    220,142    261,728    323,706    4,838    452,123    525,809    (434,654)   2,878,779 
Long-term trade accounts receivable, net   889    -    19,986    738,873    1,312    3,678    -    -    764,738 
Long-term accounts receivable from related parties   314,519    -    16,805    42    14,015    -    441,523    (235,475)   551,429 
Prepaid expenses   -    480    15,666    1,644    593    -    -    (510)   17,873 
Other long-term accounts receivable   98,771    86,229    -    -    7,346    58,057    65,962    -    316,365 
Inventories, net   -    -    -    -    -    70,233    -    -    70,233 
Investments in associates and joint ventures   968    9,963    -    -    -    2,103    1,546,618    (1,547,479)   12,173 
Investment property, net   -    -    -    1,447    -    18,477    39,121    -    59,045 
Property, plant and equipment, net   91,738    196,893    5,354    839    223    5,969    966    -    301,982 
Intangible assets, net   139,465    388,584    236,934    162    -    605    12,915    -    778,665 
Right-of-use assets, net   5,778    10,022    4,128    37    124    1,617    33,817    (12,319)   43,204 
Deferred income tax asset   146,257    3,172    27,461    -    450    21,010    57,250    16    255,616 
Total non-current assets   798,385    695,343    326,334    743,044    24,063    181,749    2,198,172    (1,795,767)   3,171,323 
Total assets   2,323,472    915,485    588,062    1,066,750    28,901    633,872    2,723,981    (2,230,421)   6,050,102 
Liabilities                                             
Borrowings   27,542    35,719    15,600    38    5    13,927    524,485    (11,202)   606,114 
Bonds   4,031    -    47,655    31,948    -    -    -    -    83,634 
Trade accounts payable   937,700    89,503    53,189    31,193    178    24,891    14,645    2,092    1,153,391 
Accounts payable to related parties   313,057    62,209    41,042    34,499    10    11,217    12,942    (426,663)   48,313 
Current income tax   27,866    560    3,769    10,082    68    6,639    3,896    -    52,880 
Other accounts payable   434,379    32,613    43,442    9,236    1,461    137,207    41,921    -    700,259 
Provisions   80,666    14,730    1,064    1,208    -    197    9,669    -    107,534 
Total current liabilities   1,825,241    235,334    205,761    118,204    1,722    194,078    607,558    (435,773)   2,752,125 
Borrowings   2,143    93,979    1,267    -    124    74,713    173,603    (2,680)   343,149 
Long-term bonds   12,925    -    142,449    597,046