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 May 2024

 

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)

 

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 ☐

 

 

 

 

 

 

 

 

AENZA S.A.A. AND SUBSIDIARIES

 

 

 

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

 

 

 

(Free translation from the original in Spanish)

 

 

 

 

AENZA S.A.A. AND SUBSIDIARIES

 

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2024 AND FOR THE THREE-MONTH PERIOD THEN ENDED (UNAUDITED)

  

CONTENTS   Page
     
Interim Condensed Consolidated Statement of Financial Position   1 - 2
     
Interim Condensed Consolidated Statement of Income   3
     
Interim Condensed Consolidated Statement of Comprehensive Income   4
     
Interim Condensed Consolidated Statement of Changes in Equity   5
     
Interim Condensed Consolidated Statement of Cash Flows   6
     
Notes to the Interim Condensed Consolidated Financial Statements   7 - 45

 

S/           =    Peruvian Sol

US$       =    United States dollar

 

- i -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Financial Position

As of December 31, 2023, and March 31, 2024

 

       As of   As of 
       December 31,   March 31, 
In thousands of soles  Note   2023   2024 
Assets            
Current assets            
Cash and cash equivalents   9    1,003,888    855,952 
Trade accounts receivable, net   10    1,061,801    1,138,361 
Accounts receivable from related parties   11    15,443    11,578 
Other accounts receivable, net   12    348,072    334,025 
Inventories, net   13    360,497    354,478 
Prepaid expenses        29,098    30,302 
Total current assets        2,818,799    2,724,696 
                
Non-current assets               
Trade accounts receivable, net   10    768,971    773,256 
Accounts receivable from related parties   11    528,285    529,332 
Other accounts receivable, net   12    311,404    317,628 
Inventories, net   13    70,282    70,295 
Prepaid expenses        14,081    9,725 
Investments in associates and joint ventures   14    12,747    13,542 
Investment property, net   15    58,260    57,345 
Property, plant and equipment, net   15    307,165    306,021 
Right-of-use assets, net   15    36,295    32,677 
Intangible assets and goodwill, net   15    752,456    725,139 
Deferred tax asset   22    255,763    262,516 
Total non-current assets        3,115,709    3,097,476 
                
Total assets        5,934,508    5,822,172 

 

- 1 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Financial Position

As of December 31, 2023, and March 31, 2024

 

      As of   As of 
      December 31,   March 31, 
In thousands of soles  Note  2023   2024 
Liabilities           
Current liabilities           
Borrowings  16   516,029    518,008 
Bonds  17   81,538    82,346 
Trade accounts payable  18   1,164,266    1,046,827 
Accounts payable to related parties  11   44,372    40,656 
Current income tax      38,398    41,453 
Other accounts payable  19   608,828    633,294 
Other provisions  20   117,086    117,997 
Total current liabilities      2,570,517    2,480,581 
              
Non-current liabilities             
Borrowings  16   306,678    297,118 
Bonds  17   741,387    728,450 
Trade accounts payable  18   4,001    2,295 
Accounts payable to related parties  11   28,564    28,881 
Other accounts payable  19   509,311    506,305 
Other provisions  20   98,067    101,848 
Deferred tax liability  22   188,694    185,749 
Total non-current liabilities      1,876,702    1,850,646 
Total liabilities      4,447,219    4,331,227 
              
Equity             
Capital  21   1,371,965    1,371,965 
Other reserves      (68,440)   (63,895)
Retained earnings      (41,148)   (56,688)
Equity attributable to controlling interest in the Company      1,262,377    1,251,382 
Non-controlling interest  29   224,912    239,563 
Total equity      1,487,289    1,490,945 
Total liabilities and equity      5,934,508    5,822,172 

 

The accompanying notes are part of the consolidated financial statements.

 

- 2 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Profit or Loss

For the periods ended March 31, 2023, and 2024

 

      For the three-month period 
      ended March 31, 
In thousands of soles  Note  2023   2024 
Revenue           
Revenue from construction activities      448,643    545,983 
Revenue from services provided      256,580    278,634 
Revenue from real estate and sale of goods      144,915    172,668 
Total revenue from ordinary activities arising from contracts with customers  23   850,138    997,285 
Cost             
Cost of construction activities      (457,892)   (546,801)
Cost of services provided      (198,424)   (193,342)
Cost of real estate and sale of goods      (112,900)   (129,143)
Cost of sales and services  24   (769,216)   (869,286)
Gross profit      80,922    127,999 
Administrative expenses  24   (45,863)   (49,773)
Other income and expenses  25   433    (1,030)
Operating profit      35,492    77,196 
Financial expenses  26.A   (41,812)   (60,358)
Financial income  26.A   18,032    7,549 
Interests for present value of financial asset or liability  26.B   13,806    (2,305)
Share of the profit or loss of associates and joint ventures accounted for using the equity method  14   864    808 
Profit before income tax      26,382    22,890 
Income tax expense  27   (32,381)   (22,425)
Profit (loss) for the period      (5,999)   465 
              
Profit (loss) attributable to:             
Controlling interest in the Company      (17,388)   (15,540)
Non-controlling interest      11,389    16,005 
       (5,999)   465 
              
Loss per share attributable to controlling interest  in the Company during the period  31   (0.015)   (0.011)
Diluted loss per share attributable to controlling interest  in the Company during the period  31   (0.015)   (0.011)

 

The accompanying notes are part of the consolidated financial statements.

 

- 3 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Other Comprehensive Income

For the periods ended March 31, 2023, and 2024

 

   For the three-month period 
   ended March 31, 
In thousands of soles  2023   2024 
Profit (loss) for the period   (5,999)   465 
Other comprehensive income:          
Items that may be subsequently reclassified to profit or loss          
Foreign currency translation adjustment, net of tax   172    4,585 
Exchange difference from net investment in a foreign operation, net of tax   322    (1)
Other comprehensive income for the period, net of tax   494    4,584 
Total comprehensive income for the period   (5,505)   5,049 
Comprehensive income attributable to:          
Controlling interest in the Company   (16,038)   (10,995)
Non-controlling interest   10,533    16,044 
    (5,505)   5,049 

 

The accompanying notes are part of the consolidated financial statements.

 

- 4 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Changes in Equity

For the periods ended March 31, 2023, and 2024

 

      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, 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 (loss) for the period      -    -    -    -    -    -    (17,388)   (17,388)   11,389    (5,999)
Foreign currency translation adjustment      -    -    -    -    -    1,030    -    1,030    (858)   172 
Exchange difference from net investment in a foreign operation      -    -    -    -    -    320    -    320    2    322 
Comprehensive income of the period      -    -    -    -    -    1,350    (17,388)   (16,038)   10,533    (5,505)
Transactions with shareholders:                                                     
Dividend distribution  30   -    -    -    -    -    -    -    -    (24,788)   (24,788)
Acquisition of (profit distribution to) non-controlling interests, net      -    -    -    -    -    -    -    -    (9,216)   (9,216)
Total transactions with shareholders      -    -    -    -    -    -    -    -    (34,004)   (34,004)
Balances as of March 31, 2023      1,196,980    1,196,980    132,011    29,974    1,142,092    (95,841)   (1,359,750)    1,045,466    261,031    1,306,497 
Balances as of January 1, 2024      1,371,965    1,371,965    -    -    -    (68,440)   (41,148)   1,262,377    224,912    1,487,289 
Profit (loss) for the period      -    -    -    -    -    -    (15,540)   (15,540)   16,005    465 
Foreign currency translation adjustment      -    -    -    -    -    4,545    -    4,545    40    4,585 
Exchange difference from net investment in a foreign operation      -    -    -    -    -    -    -    -    (1)   (1)
Comprehensive income of the period      -    -    -    -    -    4,545    (15,540)   (10,995)   16,044    5,049 
Transactions with shareholders:                                                     
Dividend distribution  30   -    -    -    -    -    -    -    -    (2,569)   (2,569)
Acquisition of (profit distribution to) non-controlling interests, net      -    -    -    -    -    -    -    -    1,176    1,176 
Total transactions with shareholders      -    -    -    -    -    -    -    -    (1,393)   (1,393)
Balances as of March 31, 2024      1,371,965    1,371,965    -    -    -    (63,895)   (56,688)   1,251,382    239,563    1,490,945 

 

The accompanying notes are part of the consolidated financial statements.

 

- 5 -

 

 

AENZA S.A.A. and Subsidiaries

Interim Condensed Consolidated Statement of Cash Flows

For the periods ended March 31, 2023, and 2024

 

      For the three-month period 
      ended March 31, 
In thousands of soles  Note  2023   2024 
            
Operating activities           
Profit before income tax      26,382    22,890 
Adjustments to profit not affecting cash flows from operating activities:             
Depreciation  15   17,936    13,620 
Amortization of intangible assets  15   35,286    31,257 
Impairment of inventories      385    - 
(Reversal) impairment of accounts receivable and other accounts receivable      (2,342)   119 
Debt condonation      (192)   - 
Impairment of property, plant and equipment      9    - 
Other provisions      6,055    5,677 
Financial expense,net      30,233    44,787 
Insurance recovery      -    (24)
Share of the profit and loss of associates and joint ventures accounted for using the equity method  14   (864)   (808)
Reversal of provisions      (3,471)   (569)
Reversal of disposal of assets      (535)   (529)
Profit on sale of property, plant and equipment and intangible assets      (420)   (487)
(Profit) loss on remeasurement of accounts receivable and accounts payable      (12,541)   2,305 
Net variations in assets and liabilities:             
Trade accounts receivable      36,132    (80,825)
Other accounts receivable      (23,885)   12,733 
Other accounts receivable from related parties      (23,403)   2,835 
Inventories      (44,556)   6,275 
Prepaid expenses and other assets      (26,982)   5,517 
Trade accounts payable      (25,169)   (119,145)
Other accounts payable      60,346    37,791 
Other accounts payable to related parties      20,157    (265)
Other provisions      (3,226)   (1,245)
Interest paid      (41,412)   (40,595)
Payments for purchases of intangible assets - Concessions      -    (1,706)
Income tax paid      (61,703)   (33,539)
Net cash applied to operating activities      (37,780)   (93,931)
Investing activities             
Proceeds from sale of property, plant and equipment and intangible assets      1,043    716 
Interest received      6,735    7,520 
Acquisition of investment property      (2)   (51)
Acquisition of intangible assets      (47,802)   (6,581)
Acquisition of property, plant and equipment      (12,029)   (10,041)
Net cash applied to investing activities      (52,055)   (8,437)
Financing activities             
Borrowing received      130,140    40,989 
Amortization of borrowings received      (68,824)   (54,068)
Amortization of bonds issued      (17,794)   (18,064)
Payment for debt transaction costs      (1,836)   (199)
Dividends paid to non-controlling interest      (24,788)   (10,654)
Cash received (return of contributions) from non-controlling shareholders      (9,216)   - 
Net cash provided by (applied to) financing activities      7,682    (41,996)
Net decrease in cash      (82,153)   (144,364)
Exchange difference      (9,821)   (3,572)
Cash and cash equivalents at the beginning of the period      917,554    1,003,888 
Cash and cash equivalents at the end of the period  9   825,580    855,952 
Non-cash transactions:             
Capitalization of interests      191    269 
Acquisition of right-of-use assets      1,684    496 

 

The accompanying notes are part of the consolidated financial statements.

 

- 6 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

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 specialized management consulting services and operational leasing of offices to the companies of the Corporation. 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 March 31, 2024 have been authorized by Management and the Board of Directors on May 15, 2024.

 

The consolidated financial statements for the year ended December 31, 2023 were approved by the General Shareholders’ Meeting on March 27, 2024.

 

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 Plea Agreement (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/488.9 million (approximately S/333.3 million and US$40.7 million). Agreement was homologated by judgment dated August 11, 2023 and entered into force with its consent, which was notified to AENZA on December 11, 2023.

 

According to the Agreement, payment shall be made within twelve (12) years at a legal interest rate in soles and dollars (3.34% and 2% annual interest as of March 31, 2024, respectively). The Company also undertakes to establish a series of guarantees through a trust 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.

 

On December 27, 2023, the initial installment of the Civil Compensation was paid to the Peruvian Government for S/10.3 million and US$1.2 million. As of March 31, 2024, the balance amounts to S/473.6 million (S/469.8 million as of December 31, 2023) (see note 19.a).

 

Pursuant to the provisions of the Agreement that excludes AENZA from the scope of Law 30737, the company has requested the Ministry of Justice to exclude it from the Lists of Category 2 and 3 Subjects provided for in said law.

 

D.NYSE Delisting and SEC Deregistration of the ADSs issued by AENZA.

 

On October 31, 2023, AENZA’s Board of Directors decided to initiate the delisting process of shares, represented by American Depositary Securities (ADSs), on the New York Stock Exchange (NYSE), and the deregistration process of such instruments with the Securities and Exchange Commission of the United States of America (SEC) and the termination of the ADS Program.

 

- 7 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

In the opinion of Management and the Board of Directors, this decision will generate efficiencies for the Company, considering the low liquidity of the ADSs and the high annual costs of NYSE listing and SEC registration, and will not affect the Company’s long-term plans. AENZA’s shares will continue to be listed on the Lima Stock Exchange (BVL).

 

December 7, 2023, was the last day of trading of the ADSs on the NYSE. AENZA will file a Form 15F with the SEC to terminate its obligations under Section 13(a) and 15(d) of the U.S. Securities Act of 1933 upon compliance with the requirements of such legislation.

 

2.Basis of preparation and Summary of Material Accounting Policies

 

The interim condensed consolidated financial statements for the period ended March 31, 2024 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 S/(000), 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.

 

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, 2023.

 

3.Standards, amendments, and interpretation adopted by the Corporation

 

Standards, amendments and interpretation that have entered in force as of January 1, 2024, have not had impact on the interim condensed consolidated financial statements as of March 31, 2024, 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.

 

- 8 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

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, 2023 and March 31, 2024, 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 March 31, 
   2023   2024 
   Buy   Sale   Buy   Sale 
U.S. Dollars (a)   3.705    3.713    3.714    3.721 
Chilean Peso (b)   0.004224    0.004233    0.003783    0.003790 
Colombian Peso (c)   0.000969    0.000971    0.000967    0.000968 

 

(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.

 

The consolidated statement of financial position as of December 31, 2023 and March 31, 2024, includes the following:

 

   As of   As of 
   December 31,   March 31, 
In thousands of US dollars  2023   2024 
Assets        
Cash and cash equivalents   105,542    62,305 
Trade accounts receivable, net   174,305    156,015 
Accounts receivable from related parties   142,435    142,435 
Other accounts receivable   85,535    72,356 
    507,817    433,111 
           
Liabilities          
Borrowings   (213,821)   (209,327)
Bonds   (3,890)   (3,972)
Trade accounts payable   (152,383)   (131,164)
Accounts payable to related parties   (3,504)   (3,502)
Other accounts payable   (64,277)   (79,402)
Other provisions   (2,032)   (2,146)
    (439,907)   (429,513)

 

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

 

- 9 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

For the periods ended March 31, 2023 and 2024, the Corporation’s exchange gains and losses (see note 26.A):

 

In thousands of soles  2023   2024 
Gain   54,493    28,163 
Loss   (43,197)   (43,646)
    11,296    (15,483)

 

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 March 31, 
   2023   2024 
   Assets   Liabilities   Assets   Liabilities 
Chilean Peso   37,715,040    53,101,695    33,802,018    44,624,412 
Colombian Peso   183,305,679    125,307,739    215,515,741    173,807,655 

 

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, 2023 and March 31, 2024 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.

 

- 10 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

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.

 

c)Liquidity risk

 

Prudent liquidity risk management implies holding enough cash and cash equivalents, 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 March 31, 2024, the Company has significant current payment obligations arising from the Plea Agreement (note 1.C) and the Bridge Loan (note 16.a). 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.

 

- 11 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

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, 2023                        
Other financial liabilities (except lease liability for right-of-use asset)   780,145    568,284    165,022    163,943    -    897,249 
Lease liability for right-of-use asset   42,562    17,754    23,487    8,725    73    50,039 
Bonds   822,925    140,546    177,121    345,473    679,085    1,342,225 
Trade accounts payables (except non-financial liabilities)   1,168,267    1,164,266    4,001    -    -    1,168,267 
Accounts payables to related parties   72,936    44,372    28,564    -    -    72,936 
Other accounts payables and other provisions (except non-financial liabilities)   673,663    195,279    57,601    138,356    410,377    801,613 
    3,560,498    2,130,501    455,796    656,497    1,089,535    4,332,329 

 

As of March 31, 2024                        
Other financial liabilities (except lease liability for right-of-use asset)   776,410    557,063    164,029    156,998    -    878,090 
Lease liability for right-of-use asset   38,716    16,364    22,504    5,856    70    44,794 
Bonds   810,796    141,261    178,920    475,335    520,483    1,315,999 
Trade accounts payables (except non-financial liabilities)   1,049,122    1,046,827    2,295    -    -    1,049,122 
Accounts payables to related parties   69,537    40,656    28,881    -    -    69,537 
Other accounts payables and other provisions (except non-financial liabilities)   685,509    205,732    57,322    138,292    408,942    810,288 
    3,430,090    2,007,903    453,951    776,481    929,495    4,167,830 

 

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). 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, 2023 and March 31, 2024, the leverage ratio is as follows:

 

       As of   As of 
       December 31,   March 31, 
In thousands of soles  Note   2023   2024 
Total borrowing, bonds and civil compensation (*)   16 and 17    2,115,471    2,099,540 
Less: Cash and cash equivalents   9    (1,003,888)   (855,952)
Net debt (a)        1,111,583    1,243,588 
Total equity (b)        1,487,289    1,490,945 
Total net debt plus equity (a) + (b)        2,598,872    2,734,533 
Gearing ratio        0.43    0.45 

 

(*) As of March 31, 2024, the provision for civil compensation amounts to S/473.6 million (S/469.8 as of December 31, 2023).

 

- 12 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

During the periods ended December 31, 2023 and March 31, 2024, there were no changes in the objectives, policies or processes related to capital management.

 

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, 2023, except for:

 

A.iii Revenue recognition by completion percentage

 

As of December 31, 2023, the Corporation recognized service revenue from construction contracts on a percentage-of-completion basis in accordance with the product method; however, given the current terms of customer contracts awarded beginning in 2024, management believes that the method that best reflects and measures the transfer of control of goods and services to its customers and full satisfaction of the performance obligation is the resource method. Therefore, beginning in 2024, the Corporation applies the resource method to measure the progress of all of its contractual performance obligations being satisfied over time.

 

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.

 

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.

 

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 determined 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.

 

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; and iii) building construction, such as offices, residential buildings, hotels, and affordable housing projects, shopping centers, and industrial facilities.

 

- 13 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

(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.

 

The Executive Committee uses the Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) as the primary relevant measure to understand the Corporation’s operating performance 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 March 31, 
In thousands of soles  2023   2024 
Net (loss) profit   (5,999)   465 
Financial income and expenses   23,780    52,809 
Interests for present value of financial asset or liability   (13,806)   2,305 
Income tax   32,381    22,425 
Depreciation and amortization   53,222    44,877 
Adjusted EBITDA   89,578    122,881 

 

The adjusted EBITDA with non-recurring items per segment is as follows:

 

   For the three-month period 
   ended March 31, 
In thousands of soles  2023   2024 
Engineering and construction   (29,543)   (19,753)
Energy   55,845    56,830 
Infrastructure   56,471    73,217 
Real estate   2,048    11,917 
Parent company operations   3,576    18,239 
Intercompany eliminations   1,181    (17,569)
    89,578    122,881 

 

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.

 

- 14 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

The following are the Corporation’s financial statements by operating segment:

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction
   Energy   Toll roads   Transportation   Water treatment   Real estate   Company
operations
   Eliminations   Consolidated 
As of December 31, 2023                                    
Assets                                    
Cash and cash equivalent   342,120    40,707    124,283    134,252    3,235    175,920    183,371    -    1,003,888 
Trade accounts receivables, net   783,231    119,948    26,353    127,336    943    3,038    952    -    1,061,801 
Accounts receivable from related parties   57,024    642    59,279    3,569    643    406    161,430    (267,550)   15,443 
Other accounts receivable, net   265,378    40,298    21,101    6,372    1    10,418    6,849    (2,345)   348,072 
Inventories, net   51,108    46,064    6,760    43,993    -    212,582    -    (10)   360,497 
Prepaid expenses   15,461    2,022    4,651    334    169    71    6,388    2    29,098 
Total current assets   1,514,322    249,681    242,427    315,856    4,991    402,435    358,990    (269,903)   2,818,799 
Trade accounts receivable, net   744    -    6,430    756,990    1,453    3,354    -    -    768,971 
Accounts receivable from related parties   298,946    -    17,157    42    14,015    -    419,282    (221,157)   528,285 
Prepaid expenses   -    480    11,920    1,611    580    -    -    (510)   14,081 
Other accounts receivable, net   102,250    77,116    -    -    7,346    59,764    64,928    -    311,404 
Inventories, net   -    -    -    -    -    70,282    -    -    70,282 
Investments in associates and joint ventures   968    10,536    -    -    -    2,103    1,737,129    (1,737,989)   12,747 
Investment property, net   -    -    -    1,427    -    18,203    38,630    -    58,260 
Property, plant and equipment, net   83,146    211,127    5,187    1,047    233    5,562    863    -    307,165 
Intangible assets and goodwill, net   143,228    370,370    225,363    138    -    617    12,740    -    752,456 
Right-of-use assets, net   4,874    8,270    3,226    25    122    1,317    28,700    (10,239)   36,295 
Deferred income tax asset   153,841    5,142    24,098    -    421    15,577    56,670    14    255,763 
Total non-current assets   787,997    683,041    293,381    761,280    24,170    176,779    2,358,942    (1,969,881)   3,115,709 
Total assets   2,302,319    932,722    535,808    1,077,136    29,161    579,214    2,717,932    (2,239,784)   5,934,508 
Liabilities                                             
Borrowings   24,081    39,052    15,358    26    5    11,618    437,729    (11,840)   516,029 
Bonds   3,611    -    49,369    28,558    -    -    -    -    81,538 
Trade accounts payable   928,109    111,816    48,232    38,272    121    21,622    16,094    -    1,164,266 
Accounts payable to related parties   78,561    80,357    47,599    69,632    7    10,990    17,154    (259,928)   44,372 
Current income tax   19,370    677    3,159    13,160    54    323    1,655    -    38,398 
Other accounts payable   416,927    26,122    34,045    10,429    1,167    86,968    33,170    -    608,828 
Provisions   83,831    20,215    1,171    1,925    -    193    9,751    -    117,086 
Total current liabilities   1,554,490    278,239    198,933    162,002    1,354    131,714    515,553    (271,768)   2,570,517 
Borrowings   697    84,989    594    -    123    73,058    147,399    (182)   306,678 
Bonds   10,834    -    130,750    599,803    -    -    -    -    741,387 
Trade accounts payable   -    -    -    4,001    -    -    -    -    4,001 
Other accounts payable   47,984    -    493    161    3,141    -    457,532    -    509,311 
Accounts payable to related parties   7,481    -    1,226    28,563    23,146    -    197,485    (229,337)   28,564 
Provisions   12,366    46,287    10,002    2,228    -    -    27,184    -    98,067 
Deferred tax liability   58,804    66,415    -    63,473    -    -    2    -    188,694 
Total non-current liabilities   138,166    197,691    143,065    698,229    26,410    73,058    829,602    (229,519)   1,876,702 
Total liabilities   1,692,656    475,930    341,998    860,231    27,764    204,772    1,345,155    (501,287)   4,447,219 
Equity attributable to controlling interest in the Company   604,039    424,874    146,259    162,680    1,397    289,942    1,369,744    (1,736,558)   1,262,377 
Non-controlling interest   5,624    31,918    47,551    54,225    -    84,500    3,033    (1,939)   224,912 
Total liabilities and equity   2,302,319    932,722    535,808    1,077,136    29,161    579,214    2,717,932    (2,239,784)   5,934,508 

 

- 15 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction
   Energy   Toll
roads
   Transportation   Water
treatment
   Real
estate
   Company
operations
   Eliminations   Consolidated 
As of March 31, 2024                                    
Assets                                    
Cash and cash equivalents   213,280    61,997    131,605    124,117    3,004    174,260    147,689    -    855,952 
Trade accounts receivables, net   833,326    134,634    36,468    127,497    1,792    3,024    1,620    -    1,138,361 
Accounts receivable from related parties   63,932    215    69,661    564    807    7,194    167,501    (298,296)   11,578 
Other accounts receivable, net   256,593    27,866    17,888    9,249    1    9,740    8,182    4,506    334,025 
Inventories, net   42,843    47,897    8,200    44,214    -    211,304    -    20    354,478 
Prepaid expenses   13,789    3,356    3,517    1,956    81    101    7,502    -    30,302 
Total current assets   1,423,763    275,965    267,339    307,597    5,685    405,623    332,494    (293,770)   2,724,696 
Trade accounts receivable, net   736    -    6,197    761,890    1,338    3,095    -    -    773,256 
Accounts receivable from related parties   299,630    -    17,452    3,064    14,015    -    417,378    (222,207)   529,332 
Prepaid expenses   -    481    7,610    1,577    567    -    -    (510)   9,725 
Other accounts receivable, net   113,660    71,450    -    -    7,346    60,096    65,076    -    317,628 
Inventories, net   -    -    -    -    -    70,295    -    -    70,295 
Investments in associates and joint ventures   957    11,344    -    -    -    2,103    1,748,516    (1,749,378)   13,542 
Investment property, net   -    -    -    1,408    -    17,798    38,139    -    57,345 
Property, plant and equipment, net   81,328    212,307    5,036    1,052    224    5,276    798    -    306,021 
Intangible assets and goodwill, net   137,508    361,605    212,703    114    -    615    12,594    -    725,139 
Right-of-use assets, net   3,712    6,460    2,434    14    120    990    26,560    (7,613)   32,677 
Deferred income tax asset   157,687    5,675    25,980    -    466    15,666    57,058    (16)   262,516 
Total non-current assets   795,218    669,322    277,412    769,119    24,076    175,934    2,366,119    (1,979,724)   3,097,476 
Total assets   2,218,981    945,287    544,751    1,076,716    29,761    581,557    2,698,613    (2,273,494)   5,822,172 
Liabilities                                             
Borrowings   22,275    36,758    15,334    15    5    12,771    439,193    (8,343)   518,008 
Bonds   3,923    -    49,377    29,046    -    -    -    -    82,346 
Trade accounts payable   833,264    91,250    54,443    33,834    113    20,069    13,854    -    1,046,827 
Accounts payable to related parties   117,545    81,979    52,592    51,773    13    11,163    14,117    (288,526)   40,656 
Current income tax   18,228    2,297    1,789    15,909    130    1,086    2,014    -    41,453 
Other accounts payable   429,045    39,997    30,266    10,378    1,293    84,485    37,830    -    633,294 
Provisions   85,980    20,187    677    1,208    -    194    9,751    -    117,997 
Total current liabilities   1,510,260    272,468    204,478    142,163    1,554    129,768    516,759    (296,869)   2,480,581 
Borrowings   179    84,080    234    -    121    71,776    140,728    -    297,118 
Bonds   10,857    -    119,047    598,546    -    -    -    -    728,450 
Trade accounts payable   -    -    -    2,295    -    -    -    -    2,295 
Other accounts payable   44,773    -    493    120    3,071    -    457,848    -    506,305 
Accounts payable to related parties   6,698    -    1,006    28,881    24,543    -    195,107    (227,354)   28,881 
Other provisions   13,183    48,063    10,338    2,898    -    -    27,366    -    101,848 
Deferred income tax liability   56,789    64,910    -    64,049    -    -    1    -    185,749 
Total non-current liabilities   132,479    197,053    131,118    696,789    27,735    71,776    821,050    (227,354)   1,850,646 
Total liabilities   1,642,739    469,521    335,596    838,952    29,289    201,544    1,337,809    (524,223)   4,331,227 
Equity attributable to controlling interest in the Company   570,818    441,938    157,233    178,325    472    292,140    1,357,783    (1,747,327)   1,251,382 
Non-controlling interest   5,424    33,828    51,922    59,439    -    87,873    3,021    (1,944)   239,563 
Total liabilities and equity   2,218,981    945,287    544,751    1,076,716    29,761    581,557    2,698,613    (2,273,494)   5,822,172 

 

- 16 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

   Engineering       Infrastructure       Parent          
In thousands of soles  and
construction
   Energy   Toll
roads
   Transportation   Water
treatment
   Real
estate
   Company
operations
   Elimination   Consolidated 
For the period ended March 31, 2023                                    
Revenue   498,745    164,876    133,388    102,108    1,263    17,775    25,189    (93,206)   850,138 
Gross profit (loss)   (7,091)   29,706    16,315    31,417    762    3,650    5,947    216    80,922 
Administrative expenses   (23,225)   (4,412)   (5,156)   (2,797)   (240)   (3,911)   (6,636)   514    (45,863)
Other income and expenses, net   (4,529)   168    373    175    -    780    3,798    (332)   433 
Operating profit (loss)   (34,845)   25,462    11,532    28,795    522    519    3,109    398    35,492 
Financial expenses   (11,567)   (5,947)   (6,225)   (1,800)   (108)   (3,235)   (26,608)   13,678    (41,812)
Financial income   4,964    2,122    1,408    1,471    160    1,913    18,334    (12,340)   18,032 
Gain (loss) on present value of financial asset or financial liability   1,352    138    (1,014)   -    -    1,256    12,074    -    13,806 
Share of profit or loss in associates and joint ventures   (1)   867    -    -    -    -    (2,877)   2,875    864 
Profit (loss) before income tax   (40,097)   22,642    5,701    28,466    574    453    4,032    4,611    26,382 
Income tax   (10,207)   (7,203)   (1,355)   (8,682)   (167)   (141)   (4,634)   8    (32,381)
Profit (loss) profit for the period   (50,304)   15,439    4,346    19,784    407    312    (602)   4,619    (5,999)
Profit (loss) profit from attributable to:                                             
Owners of the Company   (50,462)   13,467    1,587    14,838    407    (1,084)   (615)   4,474    (17,388)
Non-controlling interest   158    1,972    2,759    4,946    -    1,396    12    146    11,389 
    (50,304)   15,439    4,346    19,784    407    312    (603)   4,620    (5,999)

 

- 17 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction
   Energy   Toll
roads
   Transportation   Water treatment   Real estate   Company
operations
   Elimination   Consolidated 
For the period ended March 31, 2024                                    
Revenue   581,028    172,375    169,177    102,218    1,261    43,900    24,145    (96,819)   997,285 
Gross profit   3,350    37,050    32,904    33,703    810    13,959    3,722    2,501    127,999 
Administrative expenses   (25,165)   (4,029)   (6,641)   (3,209)   (235)   (3,648)   (5,069)   (1,777)   (49,773)
Other income and expenses, net   (2,528)   214    317    4    -    466    498    (1)   (1,030)
Operating profit (loss)   (24,343)   33,235    26,580    30,498    575    10,777    (849)   723    77,196 
Financial expenses   (22,246)   (6,463)   (6,095)   (2,206)   (84)   (2,321)   (28,261)   7,318    (60,358)
Financial income   769    251    1,702    1,958    180    1,473    8,584    (7,368)   7,549 
Gain (loss) on present value of financial asset or financial liability   90    (571)   (148)   3    -    176    (1,855)   -    (2,305)
Share of profit or loss in associates and joint ventures   -    809    -    -    -    -    15,747    (15,748)   808 
Profit (loss) before income tax   (45,730)   27,261    22,039    30,253    671    10,105    (6,634)   (15,075)   22,890 
Income tax   5,849    (8,287)   (6,736)   (9,393)   (199)   (3,140)   (503)   (16)   (22,425)
Profit (loss) for the period   (39,881)   18,974    15,303    20,860    472    6,965    (7,137)   (15,091)   465 
Profit (loss) from attributable to:                                             
Owners of the Company   (39,620)   17,064    10,974    15,645    472    2,199    (7,141)   (15,133)   (15,540)
Non-controlling interest   (261)   1,910    4,329    5,215    -    4,766    4    42    16,005 
    (39,881)   18,974    15,303    20,860    472    6,965    (7,137)   (15,091)   465 

 

- 18 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

8.Financial Instruments

 

Financial assets related to concession contracts are presented in the consolidated statement of financial position as “trade accounts receivable current” and “trade accounts receivable non-current”.

 

The classification of financial assets and liabilities by category is as follows:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Financial assets according to the consolidated statement of financial position        
Loans and accounts receivable at amortized cost:        
- Cash and cash equivalents   1,003,888    855,952 
- Trade accounts receivable and other accounts receivable          
   (excluding non-financial assets) (i)   1,379,202    1,420,052 
- Financial assets related to concession agreements (ii)   908,371    925,738 
- Accounts receivable from related parties   543,728    540,910 
    3,835,189    3,742,652 
           
Financial liabilities according to the consolidated statement of financial position          
Other financial liabilities at amortized cost:          
- Bank loans and other financial liabilities   780,145    776,410 
- Lease liability for right-of-use asset   42,562    38,716 
- Bonds   822,925    810,796 
- Trade and other accounts payable          
(excluding non-financial liabilities) (iii)   1,785,487    1,675,907 
- Accounts payable to related parties   72,936    69,537 
    3,504,055    3,371,366 
Other financial liabilities:          
- Other provisions (iv)   56,443    58,724 

 

(i)The following non-financial assets are excluded: advances to suppliers for S/95.2 million and tax receivable for S/122.2 million (S/98 million and S/104.7 million, respectively, as of December 31, 2023).
  
(ii)Included in the trade accounts receivable item.
  
(iii)The following non-financial liabilities are excluded: advances received from customers for S/238.1 million, taxes payable for S/186 million, salaries and other personnel payable for S/83.2 million and others for S/5.5 million (S/241.5 million, S/158.1 million, S/92.2 million and S/9.1 million, respectively, as of December 31, 2023).
  
(iv)Includes administrative process INDECOPI for S/58.7 million (S/56.4 million, as of December 31, 2023).

 

9.Cash and Cash Equivalents

 

This account comprises:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Cash on hand   1,020    958 
Remittances in-transit   3,621    3,966 
Current accounts (a)   263,295    253,668 
Trust account - specific use founds (b)   421,149    362,448 
Time deposits  (c)   314,803    234,912 
Total Cash and Cash equivalents   1,003,888    855,952 

 

(a)Current accounts are denominated in local and foreign currency, deposited in local and foreign banks with a high credit rating and are freely available. These accounts earn interest at market rates.

 

- 19 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

(b)The Corporation maintains trust accounts in local and foreign banks for the administration of funds for specific uses that are classified as:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Operational funds   190,755    188,534 
Consortium funds   200,473    96,573 
Reserve funds (i)   28,661    76,080 
Guarantee funds   1,260    1,261 
    421,149    362,448 

 

(i)Reserve and guarantee funds for the payment of bonds issued and other obligations of the Corporation are as follows:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Tren Urbano de Lima S.A.   4,622    51,773 
Red Vial 5 S.A.   24,039    24,307 
    28,661    76,080 

 

(c)Time deposits have maturities of less than ninety (90) days and are renewable at maturity. As of March 31, 2024, these deposits bear interest ranging from 4.07% to 5.20% (4.21% to 7.32% at December 31, 2023).

 

Cash and cash equivalents do not represent a significant credit or interest rate risk; therefore, their carrying amounts approximate their fair value.

 

10.Trade Accounts Receivable, net

 

This caption comprises the following:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
         
Receivables (a)   204,167    344,253 
Unbilled receivables - Subsidiarie (b)   718,408    642,929 
Unbilled receivables - Concession (c)   908,197    924,435 
    1,830,772    1,911,617 
           
Current portion   1,061,801    1,138,361 
Non-current portion   768,971    773,256 
    1,830,772    1,911,617 

 

As of December 31, 2023 and as of March 31, 2024, trade accounts receivable are denominated in local and foreign currency, have current maturities, do not accrue interest and do not have specific guarantees. The fair value of current invoices receivable is similar to their carrying value because their average collection period is less than sixty (60) days.

 

- 20 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

The balance of accounts receivable corresponds to:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Tren Urbano de Lima S.A.   884,326    889,387 
Cumbra Peru S.A. (i)   750,109    802,782 
Unna Energia S.A.   119,948    134,634 
Cumbra Ingenieria S.A.   33,866    31,280 
Carretera Andina del  Sur S.A.C.   14,512    22,732 
Unna Transporte S.A.C.   11,134    9,444 
Red Vial 5 S.A.   1,678    6,735 
Viva Negocio Inmobiliario S.A.   6,392    6,119 
Carretera Sierra Piura S.A.C.   5,459    3,754 
Concesionaria La Chira S.A.   2,396    3,130 
Others   952    1,620 
    1,830,772    1,911,617 

 

(i)As of March 31, 2024, the increase corresponds mainly to the activities of the project related to the construction of the Jorge Chavez airport terminal (Inti Punku Consortium).

 

(a)As of December 31, 2023, and March 31, 2024, invoices receivable are presented net of impairment of S/43.4 million and discounted at present value of S/0.5 million.

 

As of December 31, 2023, and March 31, 2024, management evaluated the exposure to credit risk on trade receivables.

 

The aging analysis of trade receivables is as follows:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Current   153,678    309,382 
Past due up to 30 days   29,375    26,101 
Past due from 31 days up to 90 days   11,932    2,008 
Past due from 91 days up to 120 days   317    291 
Past due from 121 days up to 360 days   2,192    1,728 
Past due over 360 days   6,673    4,743 
    204,167    344,253 

 

As of March 31, 2024, the amount of due debts over three hundred and sixty (360) days mainly includes invoices receivable from subsidiaries: UNNA Transporte S.A.C. for S/3 million, Cumbra Peru S.A. for S/1.2 million, and Cumbra Ingenieria S.A. for S/0.5 million (S/4.6 million, S/1.2 million S/0.9 million as of December 31, 2023, respectively).

 

- 21 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

(b)Correspond to documents related to estimates for services provided and valuations that were not invoiced. These rights are recognized discounted at present value for S/2.2 million (S/2.3 million as of December 31, 2023). The following is a breakdown by subsidiary:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Cumbra Peru S.A.   683,927    605,932 
Cumbra Ingenieria S.A.   20,655    23,578 
Unna Energia S.A.   7,183    10,309 
Unna Transporte S.A.C.   6,560    3,077 
Others   83    33 
    718,408    642,929 

 

(c)Correspond to future collections to the Grantor according to the terms of the concession agreement, as detailed below:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Tren Urbano de Lima S.A.   884,317    889,387 
Carretera Andina del Sur S.A.C.   14,403    22,732 
Red Vial 5 S.A.   1,637    6,653 
Carretera Sierra Piura S.A.C.   5,444    3,754 
Concesionaria La Chira S.A.   2,396    1,909 
    908,197    924,435 

 

Management, after evaluating the balances receivable at the date of the interim condensed consolidated financial statements, considers that, except for the accounts receivable provisioned, there are no accounts at risk of uncollectibility.

 

In the opinion of Corporate Management, the expected credit loss and allowance for trade receivables adequately cover the risk of uncollectibility as of December 31, 2023 and as of March 31, 2024.

 

11.Transactions with Related Parties

 

A.Transactions with related parties

 

Major transactions for the period ended March 31, 2023 and 2024 between the Company and its related parties are summarized as follows:

 

In thousands of soles  2023   2024 
Revenue from sales of goods and services:        
- Joint operations   6,375    15,362 
    6,375    15,362 

 

Transactions among related parties are made based on current price lists and according to the terms and conditions similar to those agreed with third parties.

 

- 22 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

B.Balances with Related parties

 

As of December 31, the balances were the following:

 

   As of December 31, 2023   As of March 31, 2024 
In thousands of soles  Receivable   Payable   Receivable   Payable 
Current portion:                
Joint operations                
Consorcio Constructor Chavimochic   -    9,313    -    8,954 
Consorcio Peruano de Conservacion   799    2,762    799    2,775 
Consorcio GyM Conciviles   -    5,709    1,377    2,080 
Consorcio Vial Quinua   -    1,945    -    1,929 
Consorcio Manperan   451    1,721    853    1,405 
Consorcio Inti Punku   5,647    114    1,079    1,265 
Consorcio TNT Vial y Vives - DSD Chile Ltda   -    558    -    523 
Consorcio Rio Urubamba   1,911    -    1,912    - 
Consorcio Italo Peruano   1,648    -    1,619    - 
Consorcio Ermitano   526    -    523    - 
Others   4,461    523    3,416    2,395 
    15,443    22,645    11,578    21,326 
                     
Other related parties                    
Ferrovias S.A.   -    21,727    -    19,330 
    -    21,727    -    19,330 
Current portion   15,443    44,372    11,578    40,656 
                     
Non-current portion                    
Gasoducto Sur Peruano S.A. (note 14.i)   527,722    -    529,004    - 
Ferrovias S.A.   -    15,761    -    15,935 
Ferrovias Participaciones S.A.   -    12,803    -    12,946 
Others   563    -    328    - 
Non-current   528,285    28,564    529,332    28,881 

 

As of December 31, 2023 and March 31, 2024, accounts receivable and payable are mainly of current maturity which have no specific guarantees. These balances do not generate interest considering their maturity in short term.

 

The Corporation conducts its operations with related companies under the same conditions as those with third parties; consequently, there are no differences in pricing policies or in the basis for tax settlement; with respect to payment terms, these do not differ from policies granted to third parties.

 

12.Other Accounts Receivable, net

 

This caption comprises the following:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
         
Claims and accounts receivable from third parties (a)   254,750    244,604 
Guarantee deposits (b)   163,740    161,081 
Credits and recoverable taxes (c)   104,654    124,326 
Advances to suppliers (d)   98,021    95,237 
Restricted funds (e)   25,419    14,905 
Accounts receivable from personnel   1,925    2,599 
Others   10,967    8,901 
    659,476    651,653 
           
Current portion   348,072    334,025 
Non-current portion   311,404    317,628 
    659,476    651,653 

 

- 23 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

a)The balance corresponds to the following:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
         
Additional investments for operating contracts   98,047    92,932 
Account receivable to the Ministry of Agriculture Development and Irrigation (a.1)   32,062    32,101 
Claims to the tax authorities   29,976    30,085 
Real estate project receivable   30,012    29,619 
Settlement agreement with third parties   21,136    21,762 
Accounts receivable from joint ventures   21,878    20,979 
Insurance claims for losses   6,778    1,702 
Others   14,861    15,424 
    254,750    244,604 

 

(a.1)The balance corresponds to the claim to the Ministry of Agrarian Development and Irrigation (hereinafter, MIDAGRI) for US$9.5 million equivalent to S/35.1 million for the execution of the total amount of the Performance Bond, derived from the arbitration process followed against the Regional Government of La Libertad and MIDAGRI for the early termination of the Concession Contract due to breach of contract by the Grantor. As of March 31, 2024, the net present value balance amounts to US$8.6 million, equivalent to S/32.1 million (note 14.ii).

 

b)Guarantees deposits correspond to funds retained by customers for work contracts, mainly of the subsidiary Cumbra Peru S.A. These deposits are retained by customers in order to guarantee that the subsidiary performs its obligations under the contracts. The amounts withheld will be recovered upon completion of the work.

 

c)The balance corresponds to the following:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
         
VAT credit   39,706    55,012 
Income tax on-account payments   45,263    56,966 
ITAN and other tax receivable   19,685    12,348 
    104,654    124,326 

 

d)Corresponds to prepayments made to suppliers, mainly for engineering and construction projects. the variation corresponds to: (i) Increase in Cumbra Peru S.A. for S/6.7 million in the project Centro Comercial la Molina, and (ii) Decrease in Cumbra Peru S.A. for S/9.5 million in the Consorcio Inti Punku for the Jorge Chavez Airport project.

 

e)As of March 31, 2024, the restricted funds correspond to bank guarantee certificates composed of Cumbra Peru S.A for S/81.7 million, Cumbra Ingenieria S.A for S/7.5 million and a restricted fund of Concesionaria La Chira S.A. for S/7.4 million (As of December 31, 2023, S/81.5 million, S/18.1 million and S/7.3 million, respectively).

 

The fair value of the other short-term accounts receivable is similar to their book value due to their short-term maturity. The non-current portion corresponds mainly to non-financial assets such as claims to third parties and tax credits. Other non-current accounts receivable maintain maturities that vary between 2 and 5 years. The maximum exposure to credit risk as of the reporting date is the carrying amount of each class of other accounts receivable mentioned.

 

- 24 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

13.Inventories, Net

 

This caption comprises the following:

 

  As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Land   117,791    116,218 
Work in progress - Real estate   127,008    132,791 
Finished properties   38,970    33,925 
Construction materials   52,479    42,719 
Merchandise and supplies   100,103    104,053 
    436,351    429,706 
Allowance for inventory write-downs   (5,572)   (4,933)
    430,779    424,773 
           
Current   360,497    354,478 
Non-current   70,282    70,295 
    430,779    424,773 

 

As of March 31, 2024, the non-current portion corresponds to land for real estate projects in Lima to be executed in the long term, S/56.6 million located in the district of San Isidro and S/13.7 million located in the district of Barranco (as of December 31, 2023, S/56.6 million and S/13.6 million, respectively).

 

Management has analyzed the inventories and has determined that there are no major indications of impairment.

 

14.Investments in Associates and Joint Ventures

 

This caption comprises the following:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Associates   2,103    2,103 
Joint ventures   10,644    11,439 
    12,747    13,542 

 

Movement of our investments in associates for the periods ended March 31, 2023, and 2024 is as follows:

 

In thousands of soles  2023   2024 
Balance as of January, 1   14,916    12,747 
Equity interest in results   864    808 
Translation adjustment   8    (13)
Balance as of March, 31   15,788    13,542 

 

The most relevant associates are described below:

 

i.Gasoducto Sur Peruano S.A.

 

In November 2015, the Corporation acquired a 20% interest in Gasoducto Sur Peruano S.A. and obtained a 29% interest in Consorcio Constructor Ductos del Sur (hereinafter “CCDS”) through its subsidiary Cumbra Peru S.A.

 

- 25 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

On July 22, 2014, GSP signed a concession agreement with the Peruvian Government to build, operate, and maintain a pipeline transportation system of natural gas to meet the demand of cities in the south of Peru (hereinafter the “Concession Agreement”). Additionally, GSP signed an engineering, procurement and construction agreement with CCDS.

 

The Corporation made an investment of US$242.5 million (equivalent to S/811 million) and had to assume 21.49% of the performance bond established in the concession agreement for US$ 262.5 million and 21.49% of the guarantee for a bridge loan of US$600 million.

 

Early termination of the Concession Agreement

 

On January 24, 2017 the Peruvian Ministry of Energy and Mines (hereinafter “MEM”) notified the early termination of the Concession Agreement under Clause 6.7 for the failure of the concessionaire to accredit the financial closure within the contractual term, proceeding with the immediate execution of the entirety of the faithful performance guarantee.

 

The situation described in the previous paragraph caused Management to recognize the impairment of its total investment equivalent to 21.49% of its participation (US$242.5 million) between 2016 and 2019, and required the register of the account receivable resulting from the execution of the counter-guarantees granted by AENZA S.A.A. in favor of the issuer of the guarantee of performance of the concession contract and in favor of the syndicate of banks that granted the bridge loan to GSP for US$52.5 million and US$129 million, respectively. According to the Concession Agreement, the guarantees were paid on behalf of GSP, therefore, AENZA S.A.A. recognized the right to collect from GSP for US$181.5 million, which were recorded in 2016 as accounts receivable from related parties. Likewise, Cumbra Peru recognized the value of accounts receivable from CCDS for US$73.5 million and lost profits for US$10 million, which correspond to receivables from GSP.

 

On October 11, 2017, the agreement deed for the delivery of the assets of the south Peruvian gas pipeline concession between GSP and MEM was signed. The assets include the works, equipment, facilities and engineering studies provided for the execution of the project.

 

Upon termination of the Concession Agreement, and in accordance with the provisions of clause 20 thereof, the Peruvian Government had the obligation to hire an internationally recognized auditing firm to calculate the Net Book Value (hereinafter “NBV”) of the concession assets, and to call up to three auctions on GSP’s assets. However, to date, the Peruvian State continues to fail to comply with these contractual obligations. The amount of the VCN was calculated at US$2,602 million by an independent auditing firm hired by GSP as of December 31, 2016, this figure was subsequently adjusted to US$2,110 million as a result of variations in the balances related to the works carried out by the consortium, which in turn is reported in its audited financial statements as of December 31, 2017.

 

Collection Actions of AENZA S.A.A.

 

On December 21, 2018, the Company asked the Peruvian Government for direct treatment and requested the payment of NBV in favor of GSP. On October 18, 2019, the Company filed with CIADI an arbitration request. On December 27, 2019 the Company withdrew the arbitration in compliance with a preliminary plea agreement signed with the Attorney General´s Office and Ad-hoc Peruvian Public Prosecutor’s Office on the same date (note 1). Withdrawing the arbitration before CIADI does not involve the loss of collection rights of the Company against GSP and does not restrict, limit, or impede GSP from asserting its rights against the Peruvian Government.

 

The Company and its internal and external legal advisors consider that the payment owed by the Government to GSP for the NBV are not within the withholding scope under Law 30737 that ensures the immediate payment of civil compensation in favor of the Peruvian Government in cases of corruption and related crimes, since this payment does not include any profit margin and/or not correspond to the sale of assets related to the project, but to a reimbursement for the investment made by the Concessionaire.

 

- 26 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

Bankruptcy of GSP

 

On December 4, 2017, GSP started a bankruptcy proceeding before the INDECOPI. The Company maintains receivable recognized by INDECOPI of US$0.4 million and US$169.3 million, the latter held under trust in favor of the creditors of the Company. In addition, it has indirectly recognized claims of US$11.8 million. On the other hand, the debt of Cumbra Peru S.A. derived from its participation in CCDS is directly recognized in INDECOPI in the GSP Competition for US$88.7 million. As of the date of this report, GSP is under liquidation and AENZA S.A.A. chairs the Board of Creditors.

 

On April 11, 2023, the Liquidation Agreement was approved, which defines the framework for the liquidator’s actions. The Liquidation Agreement includes the granting of powers to the liquidator with respect to representation, administrative, contractual and other relevant powers that allow him to comply with the obligations for which he was appointed, as well as the actions he is allowed to take in order to recover GSP’s assets and in accordance with the mechanisms set forth in the General Law of the Insolvency System.

 

On April 13, 2023, and under the powers granted to him by the Liquidation Agreement, the Liquidator requested the MEM to initiate the Direct Treatment procedure stipulated in the Concession Agreement.

 

On September 12, 2023, INDECOPI notified GSP of Resolution No. 4069-2023/CCO-INDECOPI which resolved to declare null and void the Board’s resolution approving the Liquidation Agreement because the Agreement does not the agreement does not foresee the modality and conditions of realization of the GSP assets other than the VCN (direct sale, auction, dation, etc.).

 

On November 21, 2023, the Meeting of Creditors was held with the purpose of correcting the defect declared in the aforementioned resolution, through the approval of a new Liquidation Agreement. However, this proposal only reached 59% of favorable votes, not reaching the qualified majority (66.67%) required by law. Likewise, on the same day, the Presidency of the Board, as well as other creditors requested INDECOPI to declare the liquidation of GSP.

 

In view of the above, on December 28, 2023, INDECOPI ordered the ex officio liquidation of GSP and that its Technical Secretariat of the Commission, dated on January 12, 2024, convene a Single Meeting of Creditors for January 29, 2024, in order to appoint a Liquidator for the process and approve a new Liquidation Agreement. The Meeting is formed with the Creditors in attendance and approve the corresponding proposals by simple majority. Therefore, on the referred day, with 59% of the votes in attendance, the appointment of Alva Legal Asesoria Empresarial S.A.C. as GSP’s liquidator and the proposed Liquidation Agreement were approved. The liquidation process of GSP continues its course, as well as the necessary actions for the recovery of VCN.

 

Amounts recognized in the consolidated financial statements (note 11).

 

As of March 31, 2024, the net value of the account receivable from GSP is approximately US$142.4 million, equivalent to S/529 million (US$142.4 million equivalent to S/527.7 million at December 31, 2023), which comprises the recognition in the following entities of the Corporation: i) AENZA S.A.A. holds US$ 63.9 million (equivalent to S/237.2 million) discounted to present value net of impairment and the effect of the exchange difference (US$63.9 million equivalent to S/236.6 million at December 31, 2023) and; ii) Cumbra Peru S.A. holds US$ 78.5 million (equivalent to S/291.8 million) discounted to present value, net of the effect of the exchange difference (US$78.5 million equivalent to S/291.1 million at December 31, 2023).

 

The Company’s management maintains the recovery estimate in 8 years, applying a discount rate of 5.86% (recovery term of 8 years with a discount rate of 5.14% as of March 31, 2023).

 

- 27 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

Based on management’s assessment and in conjunction with the opinion of the internal legal department and external legal counsel, the estimate of recoverability, impairment allowances and the net recognized value of the account receivable from GSP as of December 31, 2023 and March 31, 2024 is reasonable and sufficient as of the reporting date of the Corporation’s consolidated financial statements.

 

ii.Concesionaria Chavimochic S.A.C.

 

In May 2014, Concesionaria Chavimochic S.A.C. (hereinafter the “Concessionaire”), in which AENZA has 26.5% of interest, signed an agreement with the Peruvian Government (hereinafter the “Concession Agreement”) for the design, construction, operation, and maintenance of major hydraulic works of Chavimochic Project (hereinafter the “Project”). The construction of the work started in 2015 with a concession term of twenty-five (25) years and a total investment of about US$647 million.

 

According to the Concession Agreement, the works of the third stage of the Project were structured in two phases. To date, the works of the first phase (Palo Redondo Dam) are 70% in progress. However, at the beginning of 2017, the procedure for early termination of the Concession Agreement was initiated due to the breach of contract by the Grantor, and all activities were suspended in December 2017. Due to the fact that no agreement was made, the Concessionaire initiated an arbitration process before the Comision de las Naciones Unidas para el Derecho Mercantil Internacional (CNUDMI).

 

On October 4, 2022, the Arbitration Court notified the parties with the award, which provided for the early termination of the Concession Agreement and ordered, among other things, that the Grantor pay the Concessionaire the amount of US$25.3 million as a consequence of its failure to provide the Project Control Delivery, and the execution of 70% of the Performance Bond or the payment of US$25 million for the Concessionaire’s failure to obtain evidence of financial closing.

 

Despite the requests for exclusion and integration of the award filed by the Concessionaire, the Court did not issue a decision within the deadline, and the award was consented to. As of December 31, 2023, an impairment of its total investment amounting to S/14.5 million was recorded.

 

In February 2023, the Grantor partially executed the Concessionaire’s performance bond, where AENZA was required to assume a total of US$7.5 million. Likewise, prior to the closing of this report, the Grantor requested the execution of the balance of the Concessionaire’s performance bond, where AENZA is responsible for US$1.4 million. The Concessionaire is currently coordinating the necessary legal actions for the full execution of the award so that the Grantor complies with the obligations arising therefrom. Likewise, the Concessionaire will initiate legal actions against the Grantor for what it considers an arbitrary execution of the balance of the performance bond without the arbitration court having granted the possibility of executing the bond for a higher amount and without a breach of contract having been attributed to the Concessionaire that would justify such performance (note 12.a.1).

 

- 28 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

15.Investments Property, Property, Plant and Equipment, Intangible Assets and Right-of-Use Assets

 

The movement in investment property, property, plant and equipment, intangible assets and right-of-use assets accounts for the period ended March 31, 2023 and 2024, are as follows:

 

       Property,         
   Investment   plant and   Right-of-use   Intangibles 
   property   equipment   assets   assets 
In thousands of soles  (A)   (A)   (A)   (B) 
                 
Cost                
Balance at January 1, 2023   99,557    1,234,208    119,495    1,586,462 
Additions   2    12,029    1,684    47,802 
Sale of assets   -    (4,003)   -    - 
Disposals   -    (1,451)   (875)   (1,219)
Reclassifications   -    -    -    - 
Transfers   -    -    -    - 
Translations adjustments   1    7,680    156    5,890 
Balance at March 31, 2023   99,560    1,248,463    120,460    1,638,935 
Balance at January 1, 2024   105,440    1,244,039    120,576    1,626,101 
Additions   51    10,041    496    8,287 
Sale of assets   -    (2,043)   -    - 
Disposals   -    (1,019)   -    - 
Reclassifications   -    (70)   540    (23,711)
Transfers   -    -    -    - 
Translations adjustments   -    (9,238)   (5)   (6,903)
Balance at March 31, 2024   105,491    1,241,710    121,607    1,603,774 
                     
Accumulated depreciation and impairment                    
Balance at January 1, 2023   (37,633)   (949,743)   (69,288)   (799,126)
Depreciation / amortization   (965)   (12,613)   (4,358)   (35,286)
Sale of assets   -    3,613    -    - 
Disposals   -    1,235    875    1,219 
Impairment   -    (26)   -    - 
Translations adjustments   (1)   (5,101)   (135)   (1,847)
Balance at March 31, 2023   (38,599)   (962,635)   (72,906)   (835,040)
Balance at January 1, 2024   (47,180)   (936,874)   (84,281)   (873,645)
Depreciation / amortization   (966)   (8,459)   (4,195)   (31,257)
Sale of assets   -    1,814    -    - 
Disposals   -    1,005    -    - 
Reclassifications   -    70    (456)   23,711 
Translations adjustments   -    6,755    2    2,556 
Balance at March 31, 2024   (48,146)   (935,689)   (88,930)   (878,635)
                     
Carrying amounts                    
At January 1, 2023   61,924    284,465    50,207    787,336 
At March 31, 2023   60,961    285,828    47,554    803,895 
At January 1, 2024   58,260    307,165    36,295    752,456 
At March 31, 2024   57,345    306,021    32,677    725,139 

 

A.Investment property, property, plant and equipment and right-of-use assets

 

As of March 31, 2024, additions to property, plant and equipment correspond mainly to the energy segment, for machinery, replacement units, works in progress and other equipment for a total of S/6.8 million. Likewise, additions in the engineering and construction segment, for machinery, other equipment and furniture and fixtures for S/3 million; and additions in the infrastructure and real estate segment for S/0.2 million (As of March 31, 2023, additions to property, plant and equipment correspond mainly to the energy segment, for machinery, replacement units, works in progress and other assets totaling S/10.5 million. Also, additions in the engineering and construction segment, for other equipment and machinery for S/1.2 million).

 

- 29 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

As of March 31, 2024, additions to right-of-use assets correspond to the price adjustment to the Company’s property lease agreement for S/0.5 million (as of March 31, 2023, it corresponds to the price adjustment to the Company’s property lease agreement for S/1.7 million).

 

For the period ended March 31, 2023 and 2024, depreciation of property, plant and equipment, investment property and right-of-use assets is presented in the interim condensed consolidated statement of income as follows:

 

In thousands of soles  2023   2024 
         
Cost of sale of goods and services (Note 24)   14,677    10,631 
Administrative expenses (Note 24)   3,259    2,989 
Total depreciation   17,936    13,620 
(-) Depreciation related to investment property   (965)   (966)
(-) Depreciation related to right-of-use assets   (4,358)   (4,195)
Total depreciation of property, plant and equipment   12,613    8,459 

 

B.Intangible assets

 

As of March 31, 2024, the additions correspond mainly to the energy segment for investments in the preparation of wells and other assets for a total of S/6.6 million and additions in the infrastructure segment for investments in concessions for a total of S/1.7 million (As of March 31, 2023, the additions correspond mainly to investments in the preparation of wells and other assets of the energy segment for S/46.2 million).

 

For the period ended March 31, 2023 and 2024, the breakdown of intangible amortization included in the consolidated statement of income is as follows:

 

In thousands of soles  2023   2024 
Cost of sale of goods and services (note 24)   34,296    29,709 
Administrative expenses (note 24)   990    1,548 
Total amortization   35,286    31,257 

 

Goodwill

 

Management reviews businesses results based on the type of economic activity developed. The cash-generating units are distributed in the following segments:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Engineering and construction   35,158    35,049 
Electromechanical   20,736    20,735 
    55,894    55,784 

 

- 30 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

16.Borrowings

 

This caption comprises the following:

 

            Current   Non-current 
            As of   As of   As of   As of 
   Date of  Interest     December 31,   March 31,   December 31,   March 31, 
In thousands of soles  maturity  rate  Curency  2023   2024   2023   2024 
Bank loans                         
Bridge loan (a)  2024  Term SOFR 3M
 + de 9.75% a 11.25%
  USD   379,928    381,320    -    - 
Banco de Credito del Peru S.A. (b)  2029  6.04% / 10.58%  USD   26,361    25,097    68,994    70,536 
BD Capital SAF (b)  2026  7.68%  USD   6,977    6,980    13,664    11,982 
Banco Interamericano de
Desarrollo (c)
  2032  7.84%  USD   744    2,213    73,058    71,776 
Banco de Credito del Peru S.A. (d)  2024  10.00%  USD   29,628    28,334    -    - 
Banco de Credito del Peru S.A.  2024  12.50%  PEN   8,024    8,029    -    - 
Banco BBVA Peru S.A.  2024  7.94%  USD   1,486    1,490    -    - 
Bancolombia S.A.  2025  12.96% / 17.96%  COP   16,209    15,146    -    - 
Banco de Bogota  2025  15.72% / 19.88%  COP   3    1,623    -    - 
Other financial entities                             
BCI Management Administradora General
de Fondos S.A. (e)
  2027  10.45%  USD   18,401    20,101    122,214    117,388 
Others  2025  10.60% / 13.54%  PEN / CLP   14,159    14,395    295    - 
Right-of-use-liabilities  2027  5.40% / 22.66%  USD   14,109    13,280    28,453    25,436 
             516,029    518,008    306,678    297,118 

 

(a)On March 17, 2022, the Company entered into a bridge loan agreement for up to US$120 million, with a group of financial institutions comprised by Banco BTG Pactual S.A. - Cayman Branch, Banco Santander Peru S.A., HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC, and Natixis, New York Branch. The financing will be repaid over a period of eighteen (18) months, in quarterly interest installments and is secured, subject to the fulfillment of certain precedent conditions, by a flow trust (first lien), a pledge over the shares in UNNA Energia S.A. (first lien), and a trust on the shares of Viva Negocio Inmobiliario S.A.C. (second lien). On April 5, 2022, the Company received a bridge loan for up to US$120 million.

 

On October 5, 2023 and December 27, 2023, payments of US$8 million (equivalent to S/29.1 million) and US$12 million (equivalent to S/43.6 million), respectively, were made. Additionally, on December 27, 2023, the term extension of the bridge loan agreement was signed for up to US$100 million for a period of twelve months.

 

As of March 31, 2024, the amount of the loan is S/381.3 million (as of December 31, 2023, S/ 379.9 million), which includes capital of S/ 372.1 million, plus interest and net deferred charges of S/9.2 million (as of December 31, 2023, S/371.3 million and S/8.6 million, respectively).

 

As of December 31, 2023 and March 31, 2024, the Company has complied with the covenants established in the loan agreement.

 

(b)Terminales del Peru (hereinafter “TP”), a joint operation of the subsidiary UNNA Energia S.A., has a medium-term loan agreement with Banco de Credito del Peru S.A. (hereinafter BCP) to finance investments arising from the operation agreement of North and Center terminals for 2015 to 2019 period.

 

In addition, in November 2019, TP signed a loan agreement to finance the additional investments from 2019 to 2023 for a credit line of US$ 46 million with BCP. This agreement includes an assignee as interest holder, so BD Capital (BDC) acquired 50% of the BCP contractual position through the signature of an accession agreement.

 

- 31 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

As of March 31, 2024, the amount recorded for the loans equivalent to the 50% interest held by the subsidiary UNNA Energia S.A. is S/114.6 million, which includes principal plus interest and net deferred charges (S/116 million as of 31 December 2023).

 

As of December 31, 2023 and as of March 31, 2024, TP is in compliance with the covenants established in the loan agreement.

 

(c)In December 2022, Viva Negocio Inmobiliario S.A.C. signed a loan agreement with the Banco Interamericano de Desarrollo, for ten (10) years and with two (2) years grace period for principal amortization, for the purpose of building social housing. The loan was fully disbursed in January 2023, for US$20 million, equivalent to S/72.2 million. As of March 31, 2024, the total debt amounts to US$20 million, equivalent to S/74 million (US$20.2 million, equivalent to S/73.8 million, as of December 31, 2023), which includes principal of S/74.4 million, plus interest of S/0.7 million and the negative effect of deferred charges of S/1.1 million (S/74.3 million, S/0.7 million and S/1.2 million, respectively, at December 31, 2023).

 

As of December 31, 2023 and March 31, 2024, Viva Negocio Inmobiliario S.A.C. has on guarantees or covenants for these loans.

 

(d)On February 15, 2023, and May 15, 2023, the Ministry of Agrarian Development and Irrigation - MIDAGRI executed the bank guarantee letter for a total amount of US$ 9.5 million that had been issued by the Company on behalf of Concesionaria Chavimochic S.A.C. as a guarantee under the Concession contract. As a result, the Company entered into a short-term loan with Banco de Credito de Peru. The balance of the loan at March 31, 2024 is US$7.5 million, equivalent to S/28.3 million, which includes principal of S/27.8 million, plus interest of S/0.5 million (US$7.9 million, equivalent to S/29.6 million, at December 31, 2023).

 

(e)On May 29, 2018, the Company and Inversiones Concesiones Vial S.A.C. (“BCI Peru”) came into an investment agreement whith the intervention of Fondo de Inversiones BCI NV (“BCI Fund”) and BCI Management Administradora General de Fondos S.A. (“BCI” Asset Management”) to monetize future dividends from Red Vial 5 S.A. to the Company. Upon the signature of this agreement, the Company had to indirectly transfer its economic rights over 48.8% of the share capital of Red Vial 5 S.A. by transferring its B class shares (equivalent to 48.8% of the capital of Red Vial S.A.) to a vehicle specially incorporated for such purposes called Inversiones en Autopistas S.A. The amount of the transaction was US$ 42.3 million (equivalent to S/ 138 million) and was completed on June 11, 2018.

 

In addition, it has been agreed that the Company would have purchase options on 48.8% of Red Vial 5 S.A. economic rights that BCI Peru will maintain through its interest in Inversiones en Autopistas S.A. These options would be subject to certain conditions such as the expiration of different terms, recovery of the investment made with the proceeds of BCI Fund (according to different economic calculations) and/or to control changes.

 

As of March 31, 2024, the loan balance payable amounts to US$36.9 million, equivalent to S/137.5 million (as of December 31, 2023, US$37.9 million, equivalent to S/140.6 million) and includes the positive effect of the present value of S/1.9 million (as of December 31, 2023, the negative effect of the present value of S/2.4 million). Accrued interest amounts to S/2 million (in the same period of 2023, S/2.1 million).

 

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AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

(f)The carrying amount and fair value of borrowings are detailed as follows:

 

   Carrying amount   Fair value 
   As of   As of   As of   As of 
   December 31,   March 31,   December 31,   March 31, 
In thousands of soles  2023   2024   2023   2024 
                 
Bank loans   625,076    624,526    616,120    616,463 
Other financial entities   155,069    151,884    155,069    151,884 
Lease liability for right-of-use asset   42,562    38,716    43,078    38,949 
    822,707    815,126    814,267    807,296 

 

As of March 31, 2024, the fair value is based on cash flows discounted using debt rates between 4.5% and 23.3% (between 4.7% and 22.7% as of December 31, 2023) and are included as Level 2 in the level of measurement.

 

17.Bonds

 

This caption comprised the following:

 

              Current   Non-current 
              As of   As of   As of   As of 
   Date of  Interest       December 31,   March 31,   December 31,   March 31, 
In thousands of soles  maturity  rate    Currency  2023   2024   2023   2024 
                            
Corporate bonds - Regulation S issued on the United States of America (a)  2039  4.75% + Ajuste VAC    PEN   28,558    29,046    599,803    598,546 
Corporate Bonds - Lima Stock Exchange issued on Peru (b)  2027  8.38%   PEN   49,369    49,377    130,750    119,047 
Private bonds (c)  2027  8.50%   USD   3,611    3,923    10,834    10,857 
               81,538    82,346    741,387    728,450 

 

(a)In February 2015, the subsidiary Tren Urbano de Lima S.A. issued international corporate bonds under Regulation S of the United States of America. The issuance was made in VAC soles (adjusted at Constant Update Value) for an amount of S/ 629 million. The bonds have a risk rating of AA+.

 

These bonds include the following collateral: (i) mortgage on the concession of which Tren Urbano de Lima S.A. is the concessionaire, (ii) security interest on the shares of the Concessionaire, (iii) assignment of the Collection Rights of the Administration Trust, and (iv) a Flow Trust and Reserve Accounts for Debt Service, Operation and Maintenance and ongoing Capex. Issuance costs amounted to S/22 million. As of March 31, 2024, a principal repayment of S/6.5 million (S/6.4 million in 2023) has been made.

 

As of March 31, 2024 an accumulated amortization amounting to S/159.3 million (S/152.8 million as of December 31, 2023) was made.

 

As of March 31, 2024 the balance includes VAC adjustments and interest payable for S/149.8 million (S/146.1 million as of December 31, 2023).

 

For the periods ended March 31, 2023 and 2024, the movement of this account is as follows:

 

In thousands of soles  2023   2024 
         
Balance at January, 1   629,956    628,361 
Amortization   (6,375)   (6,490)
Accrued interest   14,101    13,884 
Interest paid   (8,204)   (8,163)
Balance at March, 31   629,478    627,592 

 

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AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

As of December 31, 2023 and as of March 31, 2024, Tren Urbano de Lima S.A. has complied with the corresponding covenants.

 

As of March 31, 2024, the fair value amounts to S/627.5 million (S/628.4 million, as of December 31, 2023), is based on discounted cash flows using a rate of 4.6% (4.9% as of December 31, 2023) and corresponds to level 2 of the fair value hierarchy.

 

(b)Between 2015 and 2016, the subsidiary Red Vial 5 S.A. issued the First Corporate Bond Program on the Lima Stock Exchange for a total S/365 million. The bonds are rated AA+.

 

According to the terms of the bond issuance agreement, this financing is secured by: (i) a trust of flows from the collection rights and flows derived from the Concession, except for flows corresponding to the Remuneration and the Regulation Fee; (ii) a mortgage on the concession of which Red Vial 5 S.A. is the concessionaire; (iii) movable guarantees on shares; (iv) assignment of rights on the bank letter of guarantee and any other guarantee granted in the Construction Agreement; and (v) in general, all those additional guarantees granted in favor of the secured creditors if applicable.

 

The purpose of the granted funds was to finance the construction works of the second phase of Red Vial 5 and sales tax related to the execution of project expenses.

 

For the periods ended March 31, 2023 and 2024, the movement of this account is the following:

 

In thousands of soles  2023   2024 
         
Balance at January, 1   218,684    180,119 
Amortization   (9,568)   (11,574)
Accrued interest   4,396    3,602 
Interest paid   (4,525)   (3,723)
Balance at March, 31   208,987    168,424 

 

As of December 31, 2023 and as of March 31, 2024, Red Vial 5 S.A. complied with the respective covenants.

 

As of March 31, 2024, the fair value amounts to S/172.5 million (as of December 31, 2023, S/184.6 million), is based on discounted cash flows using an annual effective interest rate 8.1% as of December 31, 2023 and as of March 31, 2024 and is within level 2 of the fair value hierarchy.

 

(c)At the beginning of 2020, the subsidiary Cumbra Peru S.A. prepared the First Private Bond Program, for US$7.8 million (equivalent to S/25.9 million), which were issued to be exchanged for a previously incurred commercial debt.

 

For the periods ended March 31, 2023, and 2024 the movement of this account is the following:

 

In thousands of soles  2023   2024 
         
Balance at January, 1   21,273    14,445 
Amortization   (1,851)   - 
Exchange difference   (282)   22 
Accrued interest   393    313 
Interest paid   (865)   - 
Balance at March, 31   18,668    14,780 

 

As of March 31, 2024, the fair value amounts to S/13.6 million (S/13.6 million as of December 31, 2023), is based on discounted cash flows using a rate of 13.9% (12% as of December 31, 2023) and is within level 2 of the fair value hierarchy.

 

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AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

18.Trade Accounts Payable

 

This item comprises:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Invoices payable   571,438    478,305 
Provision of contract costs   592,254    570,075 
Notes payable   4,575    742 
    1,168,267    1,049,122 
           
Current portion   1,164,266    1,046,827 
Non-current portion   4,001    2,295 
    1,168,267    1,049,122 

 

The breakdown of the balance of goods and services received but not invoiced by subsidiaries is as follows:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Cumbra Peru S.A.   475,159    457,124 
UNNA Transporte S.A.C.   23,746    33,799 
UNNA Energia S.A.   28,321    28,677 
Cumbra Ingenieria S.A.   17,081    16,714 
Viva Negocio Inmobiliario S.A.   13,192    13,020 
Tren Urbano de Lima S.A.   20,902    10,468 
AENZA S.A.A.   9,477    6,953 
Aenza Servicios Corporativos S.A.C.   2,206    1,808 
Red Vial 5 S.A.   1,151    930 
Others   1,019    582 
    592,254    570,075 

 

19.Other Accounts Payable

 

This caption is comprised by the following:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Civil compensation to Peruvian Government (a)   469,839    473,618 
Advances received from customers (b)   241,469    238,113 
Taxes payable   158,132    186,034 
Salaries and other payable to personnel   92,196    83,165 
Arbitration payable   68,082    69,529 
Accounts payable Consorcio Ductos del Sur   16,729    14,963 
Guarantee deposits   24,570    24,820 
Acquisition of additional non-controlling interest   6,944    7,134 
Royalties payable   9,164    19,206 
Other accounts payable   31,014    23,017 
    1,118,139    1,139,599 
           
Current portion   608,828    633,294 
Non-current portion   509,311    506,305 
    1,118,139    1,139,599 

 

(a)Corresponds to the indemnification in relation to their participation as minority partners in certain entities that developed infrastructure projects in Peru with companies belonging to the Odebrecht group and the projects associated with the “Construction Club”. As indicated in note 1.C), on September 15, 2022, the collaboration and benefits agreement was signed, whereby AENZA acknowledges that it was used by some of its former directors to commit illegal acts until 2016 and consequently undertakes to pay civil reparations to the State for S/333.3 million and US$40.7 million. The civil reparation is subject to a payment term of 12 years, under a legal interest rate in Soles 3.34% and U.S. dollars 2%; also the Company is obliged to establish a guarantee package after the Homologation formed through (i) a trust including shares issued by a subsidiary of AENZA (ii) a property belonging to the Company; and (iii) an escrow account with funds equivalent to the annual fee for the following year. Among other conditions, the Agreement includes a restriction for AENZA and the subsidiaries Cumbra Peru S.A. and UNNA Transporte S.A.C. to participate in road construction and maintenance projects with the Peruvian State for a period of two (2) years form the homologation of the Agreement.

- 35 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

On December 27, 2023, the initial installment of the Civil Redress was paid to the Peruvian State for S/10.3 million and US$1.2 million. As of March 31, 2024, the balance including interest amounts to S/325.8 million and US$39.7 million, totaling S/473.6 million (As of December 31, 2023, S/323 million and US$39.5 million, totaling S/469.8 million).

 

(b)Advances received from customers correspond mainly of the engineering and construction and real estate segments; and are discounted from the invoicing made in accordance with the terms of the agreements.

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
         
Cumbra Peru S.A. - Jorge Chavez Airport   93,792    84,456 
Viva Negocio Inmobiliario S.A.C. -  Real estate projects   73,626    72,096 
Cumbra Peru S.A. - San Gabriel - Buenaventura Project   35,923    37,855 
Cumbra Peru S.A. - C. Comercial Parque Arauco La Molina   21,448    26,893 
Proyecto Especial de Infraestructura de Transporte Nacional   12,454    11,786 
Vial y Vives - DSD S.A. - Minera Spence   2,483    2,444 
Cumbra Ingenieria S.A. - Mina Gold Fields La Cima S.A. Project   769    770 
Vial y Vives - DSD S.A. - Refineria ENAP   297    - 
Others   677    1,813 
    241,469    238,113 
           
Current   241,308    237,994 
Non-current   161    119 
    241,469    238,113 

 

The fair value of current accounts is approximate to their book value due to short-term maturities. The non-current part mainly includes non-financial liabilities such as advances received from customers; the remaining balance is not significant in the financial statements.

 

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AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

20.Other Provisions

 

The balance of this caption as of December 31, 2023 and March 31, 2024 is as follows:

 

   As of   As of 
   December 31,   March 31, 
In thousands of soles  2023   2024 
Legal claims   91,530    95,580 
Tax claims   59,362    59,794 
Provision for well closure   64,261    64,471 
    215,153    219,845 
           
Current portion   117,086    117,997 
Non-current portion   98,067    101,848 
    215,153    219,845 

  

For the periods ended March 31, 2023 and 2024, the changes in this caption are as follows:

 

           Provision     
   Legal   Tax   for well     
In thousands of soles  claims   claims   closure   Total 
                 
As of January 1, 2023   580,215    53,578    68,160    701,953 
Additions   5,928    -    127    6,055 
Present value   244    -    1,606    1,850 
Reversals of provisions   (1,285)   (1,638)   (548)   (3,471)
Payments   (3,188)   -    (38)   (3,226)
Translation adjustments / Exchange difference   (2,212)   -    (355)   (2,567)
As of December 31, 2023   579,702    51,940    68,952    700,594 
                     
As of January 1, 2024   91,529    59,363    64,261    215,153 
Additions   5,196    432    49    5,677 
Present value   90    -    950    1,040 
Reversals of provisions   (569)   -    -    (569)
Reclasification   -    -    (148)   (148)
Payments   (572)   -    (673)   (1,245)
Translation adjustments / Exchange difference   (94)   (1)   32    (63)
As of March 31, 2024   95,580    59,794    64,471    219,845 

 

As of March 31, 2024, the provisions held by the Corporation are substantially the same as of December 31, 2023.

 

21.Capital

 

On December 27, 2023, the Company issued 174,984,912 new common shares, at a price per share of S/0.4971, increasing the Company’s capital stock from S/1,196,979,979 to S/1,371,964,891. The total shares were fully subscribed and paid in two pre-emptive subscription rounds and in the Private Offering. A placement loss of S/87,999,912 was determined, equivalent to the difference between the nominal value of the new common shares issued and the total amount paid. On February 1, 2024, the capital increase was registered in the Company’s registry.

 

On October 31, 2023, the Board of Directors of AENZA approve to initiate the delisting process of shares, represented by American Depositary Securities (ADSs), on the New York Stock Exchange (NYSE), and the deregistration process of such instruments with the Securities and Exchange Commission of the United States of America (SEC) and the termination of the ADS Programme. On December 7, 2023 was the last trading day of the ADSs on the NYSE. As of December 31, 2023, a total of 70,312,080 shares were represented by ADSs, equivalent to 4,687,472 ADSs at a ratio of 15 shares per ADS. As of March 31, 2024, there were no shares represented in ADSs.

 

- 37 -

 

 

AENZA S.A.A. and Subsidiaries

Notes to the Interim Condensed Consolidated Financial Statements

As of December 31, 2023, and March 31, 2024

 

22.Deferred Income Tax

 

The changes in deferred income taxes are as follows:

 

   As of   As of 
   March 31,   March 31, 
In thousands of soles  2023   2024 
Balance as of January 1   167,330   &nb