NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AT SEPTEMBER 30, 2016 AND 2017 (UNAUDITED), AND AT DECEMBER 31, 2016 (UNAUDITED)
The Company is the parent company of the Graña y Montero Group (hereinafter the Group) and it is mainly engaged in holding the investments in the different companies of the Group. Additionally, the Company provides services of general management, financial management, commercial management, legal advisory and human resources management to the Group´s companies; it is also engaged in the leasing of offices to the Group's companies.
The Group is a conglomerate of companies with operations including different business activities, of which the most significant are engineering and construction, infrastructure (public concession ownership and operation), real estate businesses and services.
These condensed interim consolidated financial statements as of September 30, 2017 have been prepared and authorized for issuance by the Chief Financial Officer on October 26, 2017.
These condensed interim consolidated financial statements for the period ended September 30, 2017 have been prepared in accordance with (IAS 34) "Interim financial reporting".
To date, the audited report for the period 2016 has not been issued by our external auditors. As we are aware, we are carrying out complementary procedures, since some projects involving minority and non-controlling companies are being investigated in Peru.
In this regard, some items of the Financial Statements as of December 2016 have been adjusted to the amounts previously issued through complementary auditing procedures that are still ongoing. By virtue of this, the information for the 2016 period is preliminary and may be subject to subsequent modifications.
On October 04 2017, we informed through a Relevant Information Communication that Graña y Montero S.A.A (the "Company") and Gaveglio, Aparicio y Asociados S.C. de R.L. ("PwC"), a registered public accounting firm and the member in Peru of the PricewaterhouseCoopers network of firms, have determined that PwC is not independent of the Company with respect to the fiscal year 2016 as a consequence of non-audit services provided by PwC to the Company beginning in the fourth quarter of fiscal year 2016. The services relate to the Company's testing of controls in accordance with the U.S. Sarbanes-Oxley Act.
As a result, the Company, subject to the approval of the shareholders, and PwC mutually agreed to the Company's dismissal of PwC as auditor of the Company's consolidated financial statements for the fiscal year 2016. A shareholder meeting will be called on November 02, 2017 to approve the withdrawal of PwC as auditor and to appoint a new independent auditor for fiscal year 2016.
The independence issue described above does not affect PwC's independence with respect to the 2015 or 2014 fiscal years. Based on PwC's and the Company's current view of the matter and of the independence standards, PwC and the Company believe that PwC remains independent with respect to the financial periods covered by the Company's fiscal years 2015 and 2014 financial statements.
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
|
3
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
The accounting policies used in the preparation of these interim condensed consolidated financial statements are consistent with those applied in the preparation of the year-end financial statements at December 31, 2016.
|
4
|
FINANCIAL RISK MANAGEMENT
|
4.1
Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk (including currency risk, price risk, fair value interest rate risk and cash flow interest rate risk), credit risk and liquidity risk.
4.1.1 Market risk –
Compared to year end, no new material market risk hedging arrangements have occurred.
4.1.2 Credit risk –
Compared to year end, no new credit risk has been identified in the Group, considering that the level of lines used has remained the same as in the previous year
.
.
4.1.3
Liquidity risk -
Compared to year end, no major changes in undiscounted contractual cash flows have occurred. In addition, the company has been working on identifying non-strategic assets for sale and allocating funds to debt amortization.
The following table categorizes the Group's financial liabilities into relevant maturity groupings based on the remaining period from the date of the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows:
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
|
|
Less than 1
|
|
|
From 1 to
|
|
|
From 2 to
|
|
|
Over
|
|
|
|
|
|
|
year
|
|
|
2 years
|
|
|
5 years
|
|
|
5 years
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities (except
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for finance leases)
|
|
|
1,936,825
|
|
|
|
128,508
|
|
|
|
173,145
|
|
|
|
-
|
|
|
|
2,238,478
|
|
Finance leases
|
|
|
127,496
|
|
|
|
85,989
|
|
|
|
26,780
|
|
|
|
19,506
|
|
|
|
259,771
|
|
Bonds
|
|
|
113,299
|
|
|
|
180,431
|
|
|
|
365,697
|
|
|
|
1,334,485
|
|
|
|
1,993,912
|
|
Trade accounts payables
|
|
|
1,278,387
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,278,387
|
|
Accounts payables to related parties
|
|
|
80,217
|
|
|
|
28,082
|
|
|
|
37,238.00
|
|
|
|
-
|
|
|
|
145,537
|
|
Other accounts payables
|
|
|
303,827
|
|
|
|
49,064
|
|
|
|
131,556
|
|
|
|
-
|
|
|
|
484,447
|
|
Other non-financial liabilities
|
|
|
-
|
|
|
|
1,081
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,081
|
|
|
|
|
3,840,051
|
|
|
|
473,155
|
|
|
|
734,416
|
|
|
|
1,353,991
|
|
|
|
6,401,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities (except for finance leases)
|
|
|
1,072,028
|
|
|
|
523,31
|
|
|
|
167,520
|
|
|
|
-
|
|
|
|
1,762,858
|
|
Finance leases
|
|
|
82,894
|
|
|
|
52,853
|
|
|
|
29,111
|
|
|
|
1,445
|
|
|
|
166,303
|
|
Bonds
|
|
|
112,934
|
|
|
|
150,092
|
|
|
|
356,441
|
|
|
|
1,282,200
|
|
|
|
1,901,667
|
|
Trade accounts payables
|
|
|
1,295,217
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,295,217
|
|
Accounts payables to related parties
|
|
|
58,996
|
|
|
|
25,838
|
|
|
|
-
|
|
|
|
-
|
|
|
|
84,834
|
|
Other accounts payables
|
|
|
223,003
|
|
|
|
21,691
|
|
|
|
374,109
|
|
|
|
-
|
|
|
|
618,803
|
|
Other non-financial liabilities
|
|
|
-
|
|
|
|
786
|
|
|
|
-
|
|
|
|
-
|
|
|
|
786
|
|
|
|
|
2,845,072
|
|
|
|
774,570
|
|
|
|
927,181
|
|
|
|
1,283,645
|
|
|
|
5,830,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.2 Capital management -
The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including current and non-current borrowings), less cash and cash equivalents. Total capital is calculated as total 'equity' as shown in the consolidated statement of financial position plus net debt.
As of December 31, 2016 and September 30,2017, the gearing ratio is presented below indicating the Company's strategy to keep it in a range from 0.10 to 0.70. The gearing ratio was as follows:
|
|
December 31,
|
|
|
September 30,
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
Total borrowing and bonds
|
|
|
3,348,152
|
|
|
|
2,790,282
|
|
Less: Cash and cash equivalents
|
|
|
(606,949
|
)
|
|
|
(848,774
|
)
|
Net debt
|
|
|
2,741,203
|
|
|
|
1,941,508
|
|
Total equity
|
|
|
2,970,865
|
|
|
|
3,214,881
|
|
Total capital
|
|
|
5,712,068
|
|
|
|
5,156,389
|
|
|
|
|
|
|
|
|
|
|
Gearing ratio
|
|
|
0.48
|
|
|
|
0.38
|
|
4.3
Fair value estimation -
For the classification of the type of valuation used by the Group for its financial instruments at fair value, the following levels of measurement have been established.
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
|
-
|
Level 1: Measurement based on quoted prices in active markets for identical assets or liabilities.
|
|
-
|
Level 2: Measurement based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
|
|
-
|
Level 3: Measurement based on inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs, generally based on internal estimates and assumptions of the Group).
|
The fair value of the financial assets classified as at fair value through profit or loss has been determined with observable information of Level 1
Other financial instruments measured at fair value correspond to
the interest rate swaps signed by subsidiary GMP S.A., by which a variable-interest instrument is changed to a fixed interest rate (cash flow hedge). The information used for determining the fair value of these instruments are Level 2 and has been determined based on the present value of discounted future cash flows applied to the interest-rate change projections of Citibank N.A.
The carrying amounts of cash and cash equivalents correspond to their fair values. The Company considers that the carrying amount of trade accounts receivable and payable is similar to their fair values. The fair value of financial liabilities, disclosed in Note 13-b), has been estimated by discounting the future
contractual cash flows at the interest rate currently prevailing in the market and which is available to the Company for similar financial instruments (Level 2)
.
|
5
|
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
|
Preparation of the condensed interim consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed interim consolidated financial statements, the significant judgements made by management in applying the Group'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, 2016.
|
6
|
SEASONALITY OF OPERATIONS
|
The Group shows no material seasonality in the operations of any of its subsidiaries; operations are carried out regularly during the course of the period.
Operating segments are reported consistent with the internal reports that are reviewed by the Corporate General Manager, who is the chief operating decision maker, responsible for allocating resources and evaluating the performance of each operating segment.
The Group's operating segments are assessed by the activity of the following business units: (i) engineering and construction, (ii) infrastructure, (iii) real estate, (iv) technical services and (v) the operation of the Parent Company (Holding).
As set forth under IFRS 8, reportable segments by significance of income are: 'engineering and construction' and 'technical services'. However, the Group has voluntarily decided to report on all its operating segments as detailed in this Note.
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
Beginning on April 1, 2017, the Company have transferred it´s subsidiary Concar from 'technical services' segment to 'infrastructure segment'. The operating segments for 2016 have been restated for comparative purposes.
Inter-segmental sales transactions are entered into at prices that are similar to those that would have been agreed to with unrelated third parties. Revenues from external customers reported to the Corporate General Manager are measured in a manner consistent with the basis of preparation of the financial statements.
Group sales and receivables are not concentrated on a few customers.
(All the amounts are expressed in thousand of S/. unless otherwise stated)
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating segments financial position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment reporting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering
|
|
|
Infrastructure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
|
|
|
|
|
|
|
|
and construction
|
|
|
Energy
|
|
|
Toll roads
|
|
|
Mass transit
|
|
|
Water treatment
|
|
|
Real estate
|
|
|
Technical
services
|
|
|
Company Operations
|
|
|
Eliminations
|
|
|
Consolidated
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets.-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
93,543
|
|
|
|
35,396
|
|
|
|
125,853
|
|
|
|
139,414
|
|
|
|
3,229
|
|
|
|
58,892
|
|
|
|
37,675
|
|
|
|
112,397
|
|
|
|
550
|
|
|
|
606,949
|
|
Financial asset at fair value through profit or loss
|
|
|
352
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
352
|
|
Trade accounts receivables
|
|
|
334,426
|
|
|
|
84,996
|
|
|
|
77,615
|
|
|
|
97,079
|
|
|
|
256
|
|
|
|
83,704
|
|
|
|
411,041
|
|
|
|
-
|
|
|
|
(2,204
|
)
|
|
|
1,086,913
|
|
Unbilled work in progress
|
|
|
683,242
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
683,242
|
|
Accounts receivable from related parties
|
|
|
327,385
|
|
|
|
3,255
|
|
|
|
55,907
|
|
|
|
392
|
|
|
|
12,379
|
|
|
|
7,284
|
|
|
|
12,468
|
|
|
|
50,582
|
|
|
|
(287,988
|
)
|
|
|
181,664
|
|
Other accounts receivable
|
|
|
408,379
|
|
|
|
58,235
|
|
|
|
28,779
|
|
|
|
25,895
|
|
|
|
4,841
|
|
|
|
20,198
|
|
|
|
70,917
|
|
|
|
42,133
|
|
|
|
-
|
|
|
|
659,377
|
|
Inventories
|
|
|
76,059
|
|
|
|
12,561
|
|
|
|
9,839
|
|
|
|
16,862
|
|
|
|
-
|
|
|
|
946,657
|
|
|
|
58,839
|
|
|
|
387
|
|
|
|
(13,502
|
)
|
|
|
1,107,702
|
|
Prepaid expenses
|
|
|
9,205
|
|
|
|
2,614
|
|
|
|
2,005
|
|
|
|
17,265
|
|
|
|
167
|
|
|
|
329
|
|
|
|
19,458
|
|
|
|
305
|
|
|
|
-
|
|
|
|
51,348
|
|
Non-current assets classified as held for sale
|
|
|
22,385
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
22,385
|
|
Total current assets
|
|
|
1,954,976
|
|
|
|
197,057
|
|
|
|
299,998
|
|
|
|
296,907
|
|
|
|
20,872
|
|
|
|
1,117,064
|
|
|
|
610,398
|
|
|
|
205,804
|
|
|
|
(303,144
|
)
|
|
|
4,399,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term trade accounts receivable
|
|
|
149
|
|
|
|
-
|
|
|
|
15,092
|
|
|
|
629,310
|
|
|
|
-
|
|
|
|
-
|
|
|
|
22,968
|
|
|
|
-
|
|
|
|
-
|
|
|
|
667,519
|
|
Long-term unbilled work in progress
|
|
|
171,752
|
|
|
|
-
|
|
|
|
24,165
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,669
|
|
|
|
197,586
|
|
Long-term accounts receivable from related parties
|
|
|
-
|
|
|
|
-
|
|
|
|
408
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
492
|
|
|
|
757,204
|
|
|
|
(170,131
|
)
|
|
|
587,973
|
|
Prepaid expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
20,554
|
|
|
|
2,029
|
|
|
|
943
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,526
|
|
Other long-term accounts receivable
|
|
|
42,511
|
|
|
|
29,533
|
|
|
|
22,926
|
|
|
|
225,565
|
|
|
|
7,347
|
|
|
|
17,887
|
|
|
|
1,075
|
|
|
|
11,108
|
|
|
|
-
|
|
|
|
357,952
|
|
Investments in associates and joint ventures
|
|
|
117,331
|
|
|
|
8,516
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
31,768
|
|
|
|
9,589
|
|
|
|
3,288,773
|
|
|
|
(2,569,121
|
)
|
|
|
886,856
|
|
Investment property
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
49,357
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
49,357
|
|
Property, plant and equipment
|
|
|
592,191
|
|
|
|
176,486
|
|
|
|
23,508
|
|
|
|
193
|
|
|
|
21
|
|
|
|
13,008
|
|
|
|
195,462
|
|
|
|
130,422
|
|
|
|
(17,692
|
)
|
|
|
1,113,599
|
|
Intangible assets
|
|
|
246,715
|
|
|
|
139,353
|
|
|
|
457,163
|
|
|
|
269
|
|
|
|
-
|
|
|
|
950
|
|
|
|
78,687
|
|
|
|
22,793
|
|
|
|
14,356
|
|
|
|
960,286
|
|
Deferred income tax asset
|
|
|
185,957
|
|
|
|
4,983
|
|
|
|
13,244
|
|
|
|
-
|
|
|
|
-
|
|
|
|
623
|
|
|
|
50,450
|
|
|
|
29,361
|
|
|
|
7,757
|
|
|
|
292,375
|
|
Total non-current assets
|
|
|
1,356,606
|
|
|
|
358,871
|
|
|
|
577,060
|
|
|
|
857,366
|
|
|
|
8,311
|
|
|
|
113,593
|
|
|
|
358,723
|
|
|
|
4,239,661
|
|
|
|
(2,733,162
|
)
|
|
|
5,137,029
|
|
Total assets
|
|
|
3,311,582
|
|
|
|
555,928
|
|
|
|
877,058
|
|
|
|
1,154,273
|
|
|
|
29,183
|
|
|
|
1,230,657
|
|
|
|
969,121
|
|
|
|
4,445,465
|
|
|
|
(3,036,306
|
)
|
|
|
9,536,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities.-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
582,260
|
|
|
|
82,063
|
|
|
|
3,014
|
|
|
|
-
|
|
|
|
-
|
|
|
|
206,456
|
|
|
|
155,137
|
|
|
|
932,113
|
|
|
|
-
|
|
|
|
1,961,043
|
|
Bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
25,540
|
|
|
|
20,551
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
46,091
|
|
Trade accounts payable
|
|
|
876,847
|
|
|
|
59,830
|
|
|
|
31,857
|
|
|
|
23,882
|
|
|
|
599
|
|
|
|
30,617
|
|
|
|
248,991
|
|
|
|
6,703
|
|
|
|
(939
|
)
|
|
|
1,278,387
|
|
Accounts payable to related parties
|
|
|
119,989
|
|
|
|
3,902
|
|
|
|
38,219
|
|
|
|
33,009
|
|
|
|
237
|
|
|
|
66,190
|
|
|
|
33,749
|
|
|
|
67,685
|
|
|
|
(282,763
|
)
|
|
|
80,217
|
|
Current income tax
|
|
|
30,576
|
|
|
|
3,631
|
|
|
|
3,401
|
|
|
|
-
|
|
|
|
1,064
|
|
|
|
17,944
|
|
|
|
5,544
|
|
|
|
-
|
|
|
|
-
|
|
|
|
62,160
|
|
Other accounts payable
|
|
|
485,247
|
|
|
|
11,711
|
|
|
|
43,614
|
|
|
|
14,622
|
|
|
|
27
|
|
|
|
194,441
|
|
|
|
157,201
|
|
|
|
189,444
|
|
|
|
-
|
|
|
|
1,096,307
|
|
Provisions
|
|
|
6,615
|
|
|
|
6,441
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
131
|
|
|
|
1,344
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,531
|
|
Total current liabilities
|
|
|
2,101,534
|
|
|
|
167,578
|
|
|
|
145,645
|
|
|
|
92,064
|
|
|
|
1,927
|
|
|
|
515,779
|
|
|
|
601,966
|
|
|
|
1,195,945
|
|
|
|
(283,702
|
)
|
|
|
4,538,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
246,315
|
|
|
|
80,488
|
|
|
|
2,510
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16,541
|
|
|
|
73,541
|
|
|
|
-
|
|
|
|
-
|
|
|
|
419,395
|
|
Long-term bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
338,143
|
|
|
|
583,480
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
921,623
|
|
Other long-term accounts payable
|
|
|
147,839
|
|
|
|
-
|
|
|
|
44,451
|
|
|
|
246,522
|
|
|
|
-
|
|
|
|
32,000
|
|
|
|
39,558
|
|
|
|
2,433
|
|
|
|
-
|
|
|
|
512,803
|
|
Long-term accounts payable to related parties
|
|
|
41,672
|
|
|
|
-
|
|
|
|
408
|
|
|
|
87,200
|
|
|
|
23,445
|
|
|
|
40,074
|
|
|
|
42,259
|
|
|
|
394
|
|
|
|
(170,132
|
)
|
|
|
65,320
|
|
Provisions
|
|
|
12,283
|
|
|
|
17,115
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,757
|
|
|
|
-
|
|
|
|
-
|
|
|
|
31,155
|
|
Derivative financial instruments
|
|
|
-
|
|
|
|
1,081
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,081
|
|
Deferred income tax liability
|
|
|
28,278
|
|
|
|
3,546
|
|
|
|
1,525
|
|
|
|
16,983
|
|
|
|
283
|
|
|
|
15,564
|
|
|
|
9,491
|
|
|
|
313
|
|
|
|
-
|
|
|
|
75,983
|
|
Total non-current liabilities
|
|
|
476,387
|
|
|
|
102,230
|
|
|
|
387,037
|
|
|
|
934,185
|
|
|
|
23,728
|
|
|
|
104,179
|
|
|
|
166,606
|
|
|
|
3,140
|
|
|
|
(170,132
|
)
|
|
|
2,027,360
|
|
Total liabilities
|
|
|
2,577,921
|
|
|
|
269,808
|
|
|
|
532,682
|
|
|
|
1,026,249
|
|
|
|
25,655
|
|
|
|
619,958
|
|
|
|
768,572
|
|
|
|
1,199,085
|
|
|
|
(453,834
|
)
|
|
|
6,566,096
|
|
Equity attributable to controlling interest in the Company
|
|
|
616,916
|
|
|
|
265,241
|
|
|
|
282,851
|
|
|
|
96,019
|
|
|
|
3,528
|
|
|
|
234,449
|
|
|
|
158,641
|
|
|
|
3,232,803
|
|
|
|
(2,437,121
|
)
|
|
|
2,453,327
|
|
Non-controlling interest
|
|
|
116,745
|
|
|
|
20,879
|
|
|
|
61,525
|
|
|
|
32,005
|
|
|
|
-
|
|
|
|
376,250
|
|
|
|
41,908
|
|
|
|
13,577
|
|
|
|
(145,351
|
)
|
|
|
517,538
|
|
Total liabilities and equity
|
|
|
3,311,582
|
|
|
|
555,928
|
|
|
|
877,058
|
|
|
|
1,154,273
|
|
|
|
29,183
|
|
|
|
1,230,657
|
|
|
|
969,121
|
|
|
|
4,445,465
|
|
|
|
(3,036,306
|
)
|
|
|
9,536,961
|
|
(All the amounts are expressed in thousand of S/. unless otherwise stated)
|
UNAUDITED
|
|
Operating segments financial position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment reporting
|
|
|
Engineering
|
|
|
Infrastructure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
|
|
|
|
|
|
|
|
and construction
|
|
|
Energy
|
|
|
Toll roads
|
|
|
Mass transit
|
|
|
Water treatment
|
|
|
Real estate
|
|
|
Technical services
|
|
|
Company Operations
|
|
|
Eliminations
|
|
|
Consolidated
|
|
As of sSeptember 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets.-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
250,170
|
|
|
|
31,682
|
|
|
|
140,175
|
|
|
|
221,327
|
|
|
|
3,562
|
|
|
|
83,268
|
|
|
|
7,920
|
|
|
|
110,670
|
|
|
|
-
|
|
|
|
848,774
|
|
Financial asset at fair value through profit or loss
|
|
|
276
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
276
|
|
Trade accounts receivables
|
|
|
305,921
|
|
|
|
62,978
|
|
|
|
101,126
|
|
|
|
66,100
|
|
|
|
549
|
|
|
|
38,135
|
|
|
|
364,586
|
|
|
|
629
|
|
|
|
-
|
|
|
|
940,024
|
|
Unbilled work in progress
|
|
|
801,873
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,542
|
|
|
|
-
|
|
|
|
810,415
|
|
Accounts receivable from related parties
|
|
|
230,620
|
|
|
|
2,663
|
|
|
|
60,914
|
|
|
|
405
|
|
|
|
8,852
|
|
|
|
70,263
|
|
|
|
5,264
|
|
|
|
57,366
|
|
|
|
(288,667
|
)
|
|
|
147,680
|
|
Other accounts receivable
|
|
|
419,168
|
|
|
|
51,523
|
|
|
|
43,748
|
|
|
|
14,866
|
|
|
|
2,540
|
|
|
|
25,568
|
|
|
|
39,770
|
|
|
|
13,706
|
|
|
|
-
|
|
|
|
610,889
|
|
Inventories
|
|
|
53,884
|
|
|
|
14,417
|
|
|
|
16,789
|
|
|
|
18,377
|
|
|
|
-
|
|
|
|
798,639
|
|
|
|
67,544
|
|
|
|
9
|
|
|
|
(19,959
|
)
|
|
|
949,700
|
|
Prepaid expenses
|
|
|
4,477
|
|
|
|
1,880
|
|
|
|
1,998
|
|
|
|
4,623
|
|
|
|
242
|
|
|
|
233
|
|
|
|
15,977
|
|
|
|
1,751
|
|
|
|
-
|
|
|
|
31,181
|
|
Non-current assets classified as held for sale
|
|
|
306,108
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
784,221
|
|
|
|
-
|
|
|
|
1,090,329
|
|
Total current assets
|
|
|
2,372,497
|
|
|
|
165,143
|
|
|
|
364,750
|
|
|
|
325,698
|
|
|
|
15,745
|
|
|
|
1,016,106
|
|
|
|
501,061
|
|
|
|
976,894
|
|
|
|
(308,626
|
)
|
|
|
5,429,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term trade accounts receivable
|
|
|
-
|
|
|
|
-
|
|
|
|
15,092
|
|
|
|
707,845
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,492
|
|
|
|
-
|
|
|
|
-
|
|
|
|
737,429
|
|
Long-term unbilled work in progress
|
|
|
-
|
|
|
|
-
|
|
|
|
28,014
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
28,014
|
|
Long-term accounts receivable from related parties
|
|
|
-
|
|
|
|
-
|
|
|
|
408
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
477
|
|
|
|
709,886
|
|
|
|
(123,194
|
)
|
|
|
587,577
|
|
Prepaid expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
30,058
|
|
|
|
17,025
|
|
|
|
905
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,559
|
)
|
|
|
44,429
|
|
Other long-term accounts receivable
|
|
|
25,570
|
|
|
|
44,459
|
|
|
|
14,416
|
|
|
|
246,597
|
|
|
|
7,347
|
|
|
|
16,587
|
|
|
|
2,149
|
|
|
|
36,248
|
|
|
|
-
|
|
|
|
393,373
|
|
Investments in associates and joint ventures
|
|
|
115,335
|
|
|
|
8,092
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
10,487
|
|
|
|
2,491,125
|
|
|
|
(2,567,318
|
)
|
|
|
57,722
|
|
Investment property
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
46,117
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
46,117
|
|
Property, plant and equipment
|
|
|
547,282
|
|
|
|
176,383
|
|
|
|
19,480
|
|
|
|
816
|
|
|
|
60
|
|
|
|
12,232
|
|
|
|
101,251
|
|
|
|
71,081
|
|
|
|
(17,626
|
)
|
|
|
910,959
|
|
Intangible assets
|
|
|
240,500
|
|
|
|
162,275
|
|
|
|
480,475
|
|
|
|
236
|
|
|
|
-
|
|
|
|
1,001
|
|
|
|
48,642
|
|
|
|
24,044
|
|
|
|
11,481
|
|
|
|
968,654
|
|
Deferred income tax asset
|
|
|
180,175
|
|
|
|
5,179
|
|
|
|
15,128
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,545
|
|
|
|
42,014
|
|
|
|
25,681
|
|
|
|
(2,928
|
)
|
|
|
277,794
|
|
Total non-current assets
|
|
|
1,108,862
|
|
|
|
396,388
|
|
|
|
603,071
|
|
|
|
972,519
|
|
|
|
8,312
|
|
|
|
88,483
|
|
|
|
219,512
|
|
|
|
3,358,065
|
|
|
|
(2,703,144
|
)
|
|
|
4,052,068
|
|
Total assets
|
|
|
3,481,359
|
|
|
|
561,531
|
|
|
|
967,821
|
|
|
|
1,298,217
|
|
|
|
24,057
|
|
|
|
1,104,589
|
|
|
|
720,573
|
|
|
|
4,334,959
|
|
|
|
(3,011,770
|
)
|
|
|
9,481,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities.-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
599,462
|
|
|
|
44,790
|
|
|
|
1,866
|
|
|
|
-
|
|
|
|
-
|
|
|
|
162,464
|
|
|
|
175,854
|
|
|
|
150,238
|
|
|
|
-
|
|
|
|
1,134,674
|
|
Bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
25,424
|
|
|
|
14,504
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
39,928
|
|
Trade accounts payable
|
|
|
886,414
|
|
|
|
69,029
|
|
|
|
65,243
|
|
|
|
12,753
|
|
|
|
75
|
|
|
|
35,904
|
|
|
|
176,937
|
|
|
|
49,801
|
|
|
|
(939
|
)
|
|
|
1,295,217
|
|
Accounts payable to related parties
|
|
|
108,374
|
|
|
|
2,865
|
|
|
|
32,402
|
|
|
|
33,157
|
|
|
|
137
|
|
|
|
46,426
|
|
|
|
10,798
|
|
|
|
114,074
|
|
|
|
(289,237
|
)
|
|
|
58,996
|
|
Current income tax
|
|
|
23,809
|
|
|
|
1,187
|
|
|
|
346
|
|
|
|
-
|
|
|
|
81
|
|
|
|
56,013
|
|
|
|
4,594
|
|
|
|
26
|
|
|
|
(19,986
|
)
|
|
|
66,070
|
|
Other accounts payable
|
|
|
533,315
|
|
|
|
13,736
|
|
|
|
85,319
|
|
|
|
27,534
|
|
|
|
56
|
|
|
|
145,857
|
|
|
|
99,772
|
|
|
|
103,396
|
|
|
|
-
|
|
|
|
1,008,985
|
|
Provisions
|
|
|
6,615
|
|
|
|
5,102
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
36
|
|
|
|
1,342
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13,095
|
|
Non-current assets classified as held for sale
|
|
|
249,493
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
249,493
|
|
Total current liabilities
|
|
|
2,407,482
|
|
|
|
136,709
|
|
|
|
210,600
|
|
|
|
87,948
|
|
|
|
349
|
|
|
|
446,700
|
|
|
|
469,297
|
|
|
|
417,535
|
|
|
|
(310,162
|
)
|
|
|
3,866,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
149,985
|
|
|
|
96,767
|
|
|
|
2,177
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,897
|
|
|
|
29,860
|
|
|
|
403,915
|
|
|
|
-
|
|
|
|
702,601
|
|
Long-term bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
323,914
|
|
|
|
589,165
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
913,079
|
|
Other long-term accounts payable
|
|
|
143,562
|
|
|
|
-
|
|
|
|
52,474
|
|
|
|
366,773
|
|
|
|
154
|
|
|
|
32,058
|
|
|
|
35,542
|
|
|
|
2,435
|
|
|
|
-
|
|
|
|
632,998
|
|
Long-term accounts payable to related parties
|
|
|
4,405
|
|
|
|
-
|
|
|
|
408
|
|
|
|
87,845
|
|
|
|
23,445
|
|
|
|
-
|
|
|
|
32,498
|
|
|
|
-
|
|
|
|
(122,763
|
)
|
|
|
25,838
|
|
Provisions
|
|
|
12,388
|
|
|
|
16,736
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,792
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30,916
|
|
Derivative financial instruments
|
|
|
-
|
|
|
|
598
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
598
|
|
Deferred income tax liability
|
|
|
29,916
|
|
|
|
5,084
|
|
|
|
6,058
|
|
|
|
22,141
|
|
|
|
282
|
|
|
|
-
|
|
|
|
9,352
|
|
|
|
12,998
|
|
|
|
8,136
|
|
|
|
93,967
|
|
Total non-current liabilities
|
|
|
340,256
|
|
|
|
119,185
|
|
|
|
385,031
|
|
|
|
1,065,924
|
|
|
|
23,881
|
|
|
|
51,955
|
|
|
|
109,044
|
|
|
|
419,348
|
|
|
|
(114,627
|
)
|
|
|
2,399,997
|
|
Total liabilities
|
|
|
2,747,738
|
|
|
|
255,894
|
|
|
|
595,631
|
|
|
|
1,153,872
|
|
|
|
24,230
|
|
|
|
498,655
|
|
|
|
578,341
|
|
|
|
836,883
|
|
|
|
(424,789
|
)
|
|
|
6,266,455
|
|
Equity attributable to controlling interest in the Company
|
|
|
616,140
|
|
|
|
284,177
|
|
|
|
305,033
|
|
|
|
108,260
|
|
|
|
(173
|
)
|
|
|
229,494
|
|
|
|
109,187
|
|
|
|
3,484,606
|
|
|
|
(2,442,918
|
)
|
|
|
2,693,806
|
|
Non-controlling interest
|
|
|
117,481
|
|
|
|
21,460
|
|
|
|
67,157
|
|
|
|
36,085
|
|
|
|
-
|
|
|
|
376,440
|
|
|
|
33,045
|
|
|
|
13,470
|
|
|
|
(144,063
|
)
|
|
|
521,075
|
|
Total liabilities and equity
|
|
|
3,481,359
|
|
|
|
561,531
|
|
|
|
967,821
|
|
|
|
1,298,217
|
|
|
|
24,057
|
|
|
|
1,104,589
|
|
|
|
720,573
|
|
|
|
4,334,959
|
|
|
|
(3,011,770
|
)
|
|
|
9,481,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(All amounts are expressed in thousands of S/. unless otherwise stated)
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating segment performance
|
Segment Reporting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering
|
|
|
Infrastructure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
|
|
|
|
|
|
|
|
and
construction
|
|
|
Energy
|
|
|
Toll roads
|
|
|
Mass
transit
|
|
|
Water
treatment
|
|
|
Real
estate
|
|
|
Technical
services
|
|
|
Company
operations
|
|
|
Eliminations
|
|
|
Consolidated
|
|
For the nine-month period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
2,714,934
|
|
|
|
277,452
|
|
|
|
428,614
|
|
|
|
174,750
|
|
|
|
17,629
|
|
|
|
138,863
|
|
|
|
775,396
|
|
|
|
45,355
|
|
|
|
(334,665
|
)
|
|
|
4,238,328
|
|
Gross profit (loss)
|
|
|
190,584
|
|
|
|
31,120
|
|
|
|
97,193
|
|
|
|
43,480
|
|
|
|
5,764
|
|
|
|
38,638
|
|
|
|
96,976
|
|
|
|
(4,079
|
)
|
|
|
(49,618
|
)
|
|
|
450,058
|
|
Administrative expenses
|
|
|
(189,779
|
)
|
|
|
(10,749
|
)
|
|
|
(25,756
|
)
|
|
|
(8,373
|
)
|
|
|
(545
|
)
|
|
|
(14,779
|
)
|
|
|
(67,528
|
)
|
|
|
(26,269
|
)
|
|
|
54,778
|
|
|
|
(289,000
|
)
|
Other income and expenses
|
|
|
47,036
|
|
|
|
(1,943
|
)
|
|
|
159
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
707
|
|
|
|
3,109
|
|
|
|
1,847
|
|
|
|
(4,624
|
)
|
|
|
46,289
|
|
Gain from the sale of investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
31,768
|
|
|
|
-
|
|
|
|
31,768
|
|
Operating profit (loss)
|
|
|
47,841
|
|
|
|
18,428
|
|
|
|
71,596
|
|
|
|
35,105
|
|
|
|
5,219
|
|
|
|
24,566
|
|
|
|
32,557
|
|
|
|
3,267
|
|
|
|
536
|
|
|
|
239,115
|
|
Financial expenses
|
|
|
(43,900
|
)
|
|
|
(6,897
|
)
|
|
|
(4,509
|
)
|
|
|
(2,120
|
)
|
|
|
(36
|
)
|
|
|
(10,141
|
)
|
|
|
(20,961
|
)
|
|
|
(24,451
|
)
|
|
|
9,826
|
|
|
|
(103,189
|
)
|
Financial income
|
|
|
15,710
|
|
|
|
1,679
|
|
|
|
1,675
|
|
|
|
4,538
|
|
|
|
104
|
|
|
|
1,687
|
|
|
|
3,370
|
|
|
|
12,360
|
|
|
|
(19,799
|
)
|
|
|
21,324
|
|
Share of the profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in associates and joint ventures under the equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
method of accounting
|
|
|
12,409
|
|
|
|
1,282
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,022
|
|
|
|
459
|
|
|
|
176,269
|
|
|
|
(140,700
|
)
|
|
|
51,741
|
|
Profit before income tax
|
|
|
32,060
|
|
|
|
14,492
|
|
|
|
68,762
|
|
|
|
37,523
|
|
|
|
5,287
|
|
|
|
18,134
|
|
|
|
15,425
|
|
|
|
167,445
|
|
|
|
(150,137
|
)
|
|
|
208,991
|
|
Income tax
|
|
|
(13,238
|
)
|
|
|
(3,962
|
)
|
|
|
(19,424
|
)
|
|
|
(11,325
|
)
|
|
|
(1,481
|
)
|
|
|
(4,610
|
)
|
|
|
(5,966
|
)
|
|
|
10,556
|
|
|
|
2,545
|
|
|
|
(46,905
|
)
|
Profit for the period
|
|
|
18,822
|
|
|
|
10,530
|
|
|
|
49,338
|
|
|
|
26,198
|
|
|
|
3,806
|
|
|
|
13,524
|
|
|
|
9,459
|
|
|
|
178,001
|
|
|
|
(147,592
|
)
|
|
|
162,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Company
|
|
|
22,406
|
|
|
|
7,711
|
|
|
|
38,119
|
|
|
|
19,649
|
|
|
|
3,806
|
|
|
|
3,736
|
|
|
|
7,021
|
|
|
|
178,912
|
|
|
|
(142,718
|
)
|
|
|
138,642
|
|
Non-controlling interest
|
|
|
(3,584
|
)
|
|
|
2,819
|
|
|
|
11,219
|
|
|
|
6,549
|
|
|
|
-
|
|
|
|
9,788
|
|
|
|
2,438
|
|
|
|
(911
|
)
|
|
|
(4,874
|
)
|
|
|
23,444
|
|
|
|
|
18,822
|
|
|
|
10,530
|
|
|
|
49,338
|
|
|
|
26,198
|
|
|
|
3,806
|
|
|
|
13,524
|
|
|
|
9,459
|
|
|
|
178,001
|
|
|
|
(147,592
|
)
|
|
|
162,086
|
|
(All amounts are expressed in thousands of S/. unless otherwise stated)
|
UNAUDITED
|
|
Operating segment performance
|
|
Segment Reporting
|
|
|
|
Engineering
|
|
|
Infrastructure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
|
|
|
|
|
|
|
|
and
construction
|
|
|
Energy
|
|
|
Toll roads
|
|
|
Mass
transit
|
|
|
Water
treatment
|
|
|
Real
estate
|
|
|
Technical
services
|
|
|
Company
operations
|
|
|
Eliminations
|
|
|
Consolidated
|
|
For the nine-month period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
2,465,066
|
|
|
|
318,313
|
|
|
|
386,225
|
|
|
|
213,077
|
|
|
|
2,297
|
|
|
|
443,581
|
|
|
|
896,592
|
|
|
|
51,819
|
|
|
|
(314,876
|
)
|
|
|
4,462,094
|
|
Gross profit (loss)
|
|
|
209,815
|
|
|
|
46,773
|
|
|
|
88,956
|
|
|
|
35,241
|
|
|
|
260
|
|
|
|
144,066
|
|
|
|
92,355
|
|
|
|
(44,330
|
)
|
|
|
(47,699
|
)
|
|
|
525,437
|
|
Administrative expenses
|
|
|
(151,474
|
)
|
|
|
(12,032
|
)
|
|
|
(24,407
|
)
|
|
|
(9,509
|
)
|
|
|
(254
|
)
|
|
|
(13,600
|
)
|
|
|
(80,060
|
)
|
|
|
(46,752
|
)
|
|
|
49,835
|
|
|
|
(288,253
|
)
|
Other income and expenses
|
|
|
6,033
|
|
|
|
567
|
|
|
|
523
|
|
|
|
(675
|
)
|
|
|
-
|
|
|
|
(2,863
|
)
|
|
|
8,436
|
|
|
|
923
|
|
|
|
68
|
|
|
|
13,012
|
|
Gain from the sale of investments
|
|
|
25,768
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
49,002
|
|
|
|
-
|
|
|
|
195,378
|
|
|
|
4,215
|
|
|
|
274,363
|
|
Operating profit (loss)
|
|
|
90,142
|
|
|
|
35,308
|
|
|
|
65,072
|
|
|
|
25,057
|
|
|
|
6
|
|
|
|
176,605
|
|
|
|
20,731
|
|
|
|
105,219
|
|
|
|
6,419
|
|
|
|
524,559
|
|
Financial expenses
|
|
|
(37,185
|
)
|
|
|
(8,862
|
)
|
|
|
(5,283
|
)
|
|
|
(4,081
|
)
|
|
|
(36
|
)
|
|
|
(15,111
|
)
|
|
|
(24,961
|
)
|
|
|
(59,109
|
)
|
|
|
14,677
|
|
|
|
(139,951
|
)
|
Financial income
|
|
|
4,674
|
|
|
|
1,728
|
|
|
|
2,426
|
|
|
|
2,706
|
|
|
|
7
|
|
|
|
2,152
|
|
|
|
1,835
|
|
|
|
38,267
|
|
|
|
(27,291
|
)
|
|
|
26,504
|
|
Share of the profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in associates and joint ventures under the equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
method of accounting
|
|
|
35,781
|
|
|
|
1,198
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
455
|
|
|
|
685
|
|
|
|
211,763
|
|
|
|
(228,970
|
)
|
|
|
20,912
|
|
Profit before income tax
|
|
|
93,412
|
|
|
|
29,372
|
|
|
|
62,215
|
|
|
|
23,682
|
|
|
|
(23
|
)
|
|
|
164,101
|
|
|
|
(1,710
|
)
|
|
|
296,140
|
|
|
|
(235,165
|
)
|
|
|
432,024
|
|
Income tax
|
|
|
(15,298
|
)
|
|
|
(8,458
|
)
|
|
|
(17,921
|
)
|
|
|
(7,363
|
)
|
|
|
(150
|
)
|
|
|
(43,211
|
)
|
|
|
(2,075
|
)
|
|
|
(49,210
|
)
|
|
|
2,028
|
|
|
|
(141,658
|
)
|
Profit (loss) for the period
|
|
|
78,114
|
|
|
|
20,914
|
|
|
|
44,294
|
|
|
|
16,319
|
|
|
|
(173
|
)
|
|
|
120,890
|
|
|
|
(3,785
|
)
|
|
|
246,930
|
|
|
|
(233,137
|
)
|
|
|
290,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Company
|
|
|
71,783
|
|
|
|
18,260
|
|
|
|
31,939
|
|
|
|
12,240
|
|
|
|
(173
|
)
|
|
|
60,852
|
|
|
|
(3,305
|
)
|
|
|
247,019
|
|
|
|
(199,827
|
)
|
|
|
238,788
|
|
Non-controlling interest
|
|
|
6,331
|
|
|
|
2,654
|
|
|
|
12,355
|
|
|
|
4,079
|
|
|
|
-
|
|
|
|
60,038
|
|
|
|
(480
|
)
|
|
|
(89
|
)
|
|
|
(33,310
|
)
|
|
|
51,578
|
|
|
|
|
78,114
|
|
|
|
20,914
|
|
|
|
44,294
|
|
|
|
16,319
|
|
|
|
(173
|
)
|
|
|
120,890
|
|
|
|
(3,785
|
)
|
|
|
246,930
|
|
|
|
(233,137
|
)
|
|
|
290,366
|
|
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
No major changes occurred in total assets as compared to the amount stated in the year-end financial statements.
There are no differences as compared to the year-end financial statements based on segmentation or measurement of financial performance by segment.
8
|
CASH AND CASH EQUIVALENTS
|
This account comprises:
|
|
At December,31
|
|
|
At September,30
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
Cash on hand
|
|
|
5,943
|
|
|
|
5,877
|
|
In-transit remittances
|
|
|
7,931
|
|
|
|
867
|
|
Checking accounts
|
|
|
475,025
|
|
|
|
726,283
|
|
Time deposits
|
|
|
112,023
|
|
|
|
115,747
|
|
Mutual funds
|
|
|
6,027
|
|
|
|
-
|
|
|
|
|
606,949
|
|
|
|
878,774
|
|
Reconciliation to cash flow statement
The above figures reconcile to the amount of cash shown in the statement of cash flows at the end of:
|
|
At December,31
|
|
|
At September,30
|
|
|
|
2016
|
|
|
2017
|
|
Balances as above
|
|
|
606,949
|
|
|
|
848,774
|
|
Bank overdrafts (note 13)
|
|
|
(8,396
|
)
|
|
|
(1,048
|
)
|
Balances per statement of cash flows
|
|
|
598,553
|
|
|
|
847,726
|
|
9
|
T
RANSACTIONS WITH RELATED PARTIES
|
a)
Transactions with related parties
-
Major transactions between the Company and its related parties are summarized as follows:
|
|
From the period
ended September 30,
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
Revenue from sale of goods and services:
|
|
|
|
|
|
|
- Associates
|
|
|
-
|
|
|
|
1,654
|
|
- Joint operations
|
|
|
22,304
|
|
|
|
8,595
|
|
|
|
|
22,304
|
|
|
|
10,249
|
|
Inter-company services were agreed upon under market terms as if they had been agreed to with third parties.
b)
Balances of transactions with related parties
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
|
|
At
December 31,
|
|
|
At September 30,
|
|
|
|
2016
|
|
|
2017
|
|
|
|
Receivable
|
|
|
Payable
|
|
|
Receivable
|
|
|
Payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consorcio Constructor Ductos del Sur
|
|
|
62,834
|
|
|
|
37,238
|
|
|
|
15,682
|
|
|
|
-
|
|
Consorcio GyM Conciviles
|
|
|
61,006
|
|
|
|
-
|
|
|
|
61,833
|
|
|
|
-
|
|
Consorcio Rio Urubamba
|
|
|
9,072
|
|
|
|
-
|
|
|
|
8,993
|
|
|
|
-
|
|
Consorcio Peruano de Conservación
|
|
|
8,784
|
|
|
|
-
|
|
|
|
7,182
|
|
|
|
-
|
|
Consorcio Vial Quinu
|
|
|
4,198
|
|
|
|
738
|
|
|
|
-
|
|
|
|
1,837
|
|
Consorcio Italo Peruano
|
|
|
4,174
|
|
|
|
17,325
|
|
|
|
17,158
|
|
|
|
16,029
|
|
Consorcio La Gloria
|
|
|
3,521
|
|
|
|
3,080
|
|
|
|
1,690
|
|
|
|
1,355
|
|
Consorcio Terminales del Perú
|
|
|
3,215
|
|
|
|
259
|
|
|
|
3,52
|
|
|
|
-
|
|
Consorcio Rio Mantaro
|
|
|
3,191
|
|
|
|
6,886
|
|
|
|
12,374
|
|
|
|
10,045
|
|
Consorcio Vial Sierra
|
|
|
940
|
|
|
|
5,400
|
|
|
|
2,819
|
|
|
|
4,521
|
|
Consorcio Constructor Chavimochic
|
|
|
915
|
|
|
|
2,471
|
|
|
|
1,361
|
|
|
|
5,816
|
|
Consorcio Energía y Vapor
|
|
|
491
|
|
|
|
3,203
|
|
|
|
-
|
|
|
|
73
|
|
Consorcio Ermitaño
|
|
|
83
|
|
|
|
6,372
|
|
|
|
1,006
|
|
|
|
7
|
|
Consorcio Menegua
|
|
|
30
|
|
|
|
3,803
|
|
|
|
-
|
|
|
|
691
|
|
Consorcio para la Atención y Mantenimiento de Ductos
|
|
|
-
|
|
|
|
21,790
|
|
|
|
-
|
|
|
|
10,152
|
|
Consorcio Huacho Pativilca
|
|
|
-
|
|
|
|
3,434
|
|
|
|
-
|
|
|
|
133
|
|
Other minors
|
|
|
10,133
|
|
|
|
2,472
|
|
|
|
11,577
|
|
|
|
4,543
|
|
|
|
|
172,587
|
|
|
|
114,471
|
|
|
|
145,195
|
|
|
|
55,202
|
|
Other related parties:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaseoducto Sur Peruano S.A
|
|
|
587,973
|
|
|
|
-
|
|
|
|
589,929
|
|
|
|
-
|
|
Perú Piping Spools S.A.C.
|
|
|
9,077
|
|
|
|
-
|
|
|
|
133
|
|
|
|
587
|
|
Ferrovias Participaciones
|
|
|
-
|
|
|
|
20,813
|
|
|
|
-
|
|
|
|
21,434
|
|
Ferrovias Argentina
|
|
|
-
|
|
|
|
2,835
|
|
|
|
-
|
|
|
|
3,206
|
|
Arturo Serna
|
|
|
-
|
|
|
|
7,418
|
|
|
|
-
|
|
|
|
4,405
|
|
|
|
|
597,050
|
|
|
|
31,066
|
|
|
|
590,062
|
|
|
|
27,599
|
|
|
|
|
769,637
|
|
|
|
145,537
|
|
|
|
735,257
|
|
|
|
102,225
|
|
Less non-current portion:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaseoducto Sur Peruano S.A
|
|
|
(587,973
|
)
|
|
|
-
|
|
|
|
(587,577
|
)
|
|
|
-
|
|
Consorcio Constructor Ductos del Sur
|
|
|
-
|
|
|
|
(37,238
|
)
|
|
|
-
|
|
|
|
-
|
|
Ferrovias Participaciones
|
|
|
-
|
|
|
|
(20,813
|
)
|
|
|
-
|
|
|
|
(21,433
|
)
|
Ferrovias Argentina
|
|
|
-
|
|
|
|
(2,835
|
)
|
|
|
-
|
|
|
|
-
|
|
Arturo Serna
|
|
|
-
|
|
|
|
(
4,434
|
)
|
|
|
-
|
|
|
|
(
4,405
|
)
|
Portion current
|
|
|
181,664
|
|
|
|
80,217
|
|
|
|
147,680
|
|
|
|
58,996
|
|
|
Accounts receivable and payable have no specific guarantees.
|
|
|
|
Accounts receivable from related parties mainly arise from sales transactions for goods and services with a maturity period of 60 days. These balances are non-interest-bearing because they have short-term maturities and do not require a provision for impairment.
|
|
|
|
Accounts payable to
related parties mainly arise from transactions to provide services of engineering, construction, maintenance and others and have a maturity period of 60 days. Such accounts are not interest bearing because they are short-term.
|
10
|
NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
|
As of September 30, 2017, this item includes the balances of the Consorcio Constructor Ductos del Sur for S/288.4 million, and the reclassification of the investment in the associate Gasoducto Sur Peruano S.A. for S/727.5 million.
In February and March 2017, the Company has sold through its brokerage operations part of its shares (representing 9.97%) in the Red Eagle Mining Corporation investment, obtaining a remaining interest of 2.70%. The sale price was agreed at US$13.3 million (equivalent to S/43 million), which were canceled in full.
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
In August 2017, the Company has capitalized claims to Red Eagle Mining Corporation for US$4 million. As of September 30, 2017, a holding of 6.18%
11
|
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
|
As of September 30, 2017, associates in which the Group has significant influence are similar to those existing as of December 31, 2016, except for the reclassification mentioned
The movement of our investments in associates for the period ended September 30,
2016 and 2017 is as follows:
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
|
646,884
|
|
|
|
886
,855
|
|
Acquisition and/or contributions received
|
|
|
850
|
|
|
|
-
|
|
Increase in capital
|
|
|
389,662
|
|
|
|
-
|
|
Debt capitalization
|
|
|
-
|
|
|
|
-
|
|
Share of the profit and loss in associates
|
|
|
-
|
|
|
|
|
|
under the equity method of accounting
|
|
|
51,741
|
|
|
|
7,946
|
|
Sale of investments
|
|
|
-
|
|
|
|
(
120,779
|
)
|
Dividends received
|
|
|
(18,347
|
)
|
|
|
( 1,873
|
)
|
Acquisition of control – Adexus
|
|
|
(26,432
|
)
|
|
|
-
|
|
Contract adjustment - Gasoducto Sur Peruano
|
|
|
20,554
|
|
|
|
-
|
|
Reclassification discontinuous operation
|
|
|
-
|
|
|
|
(714,554
|
)
|
Other
|
|
|
507
|
|
|
|
127
|
|
Ending balance
|
|
|
1,065,419
|
|
|
|
57,722
|
|
In January and August 2016, the Company capitalized debt with Adexus by S/8.3 million and S/14 million respectively, increasing its participation in the first case from 44% to 52% and in the second capitalization from 52% to 91.03 % control is adquired. To date, the Company has incorporated in the Consolidated Financial Statements assets and liabilities of Adexus, the process of measuring the fair value of net asset is concluded by the end of December 2016.
On November 2015, subsidiary Negocios del Gas SA. adquired an interest of 20% of concessionaire Gasoducto Sur Peruano, which represents an investment of approximately US$248 million, at December 2015 the contribution was S/391 million and at December 2016 its contribution was increased in S/374 million.
Gasoducto del Sur Peruano S.A. ("GSP"), company owner of the concession "Improvements to the Energy Security of the Country and Development of the Peruvian Southern Gas Pipeline" (the "Concession") and of which our subsidiary Negocios de Gas S.A is a shareholder with 20%, received a notification on January 24, 2017, from the Ministry of Energy and Mines, as Grantor of the Concession, by which it terminated the concession agreement signed on July 23, 2014 (the "Concession Contract").
In case of the termination of the Concession, the Concession Contract states that the Net Book Value of the Concession's assets ("VCN") must be determined, and then call a public auction for the transfer of the Concession's assets to a new concessionaire. From this amount, GSP is entitled to receive, within a maximum term of 12 months as of the termination of the Concession, a payment that can range from the guaranteed minimum of 72.25% of the VCN to the 100% of the VCN that is a function of the result of the auction.
According to the analysis made by the Company with the information available to date, and under the agreements entered into with the other shareholders of GSP, in the event that the payment reaches 72.25% of the VCN we would recover more than 95% of the total commitments which include the equity invested in GSP amounting to US$220 million, the amount honored by the corporate guarantee granted to the bridge loan conferred to GSP by a syndicate of five banks amounting to US$129 million, as well as the percentage honored in relation to the Guarantee of Fulfillment of the Concession Contract that amounts to US$52.5 million.
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
The Company has registered the impacts of such termination in the Financial Statement to fiscal year 2016, which is a result that considers receiving the minimum payment of 72.25% of the aforementioned VCN.
In March 2017, the investment was reclassified to Non-current assets classified as held for sale.
In February 2017 subsidiary Viva GyM S.A. signed a purchase-sales agreement comprising its equity interest (representing 22.5%) held in associate Promoción Inmobiliaria del Sur S.A. The agreed selling price was US$25 million (equivalent to S/81 million), which was fully paid.
In April 2017 the Company signed a purchase-sale agreement for their total share (representing 51%) at their joint venture with Compañía Operadora de Gas del Amazonas S.A.C. (COGA). The selling price was agreed at US$21.5 million (equivalent to S/69.8 million), which was fully paid.
In June 2017, the Company sold all of GMD's shares, which represent 89.19% of the company's shareholding, in favor of AI Inversiones Palo Alto II S.A.C., an affiliate of Advent International. The value agreed for the total participation was US$84.7 million. As of to date, the amount was fully collected.
12
|
PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
|
For the period ended September 30, 2016 and 2017, the movement in property, plant and equipment and intangible assets accounts was as follows:
|
|
Property,
|
|
|
|
|
|
|
plant and
|
|
|
Intangible
|
|
|
|
equipment
|
|
|
assets
|
|
|
|
|
|
|
|
|
At January 1, 2016
|
|
|
1,111,757
|
|
|
|
881,020
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
148,861
|
|
|
|
102,367
|
|
Acquisition of subsidiary - net
|
|
|
47,165
|
|
|
|
101,534
|
|
Transfers, disposals and adjustments
|
|
|
9,364
|
|
|
|
22,995
|
|
Deductions for sale of assets
|
|
|
(35,184
|
)
|
|
|
-
|
|
Depreciation, amortization
|
|
|
(146,352
|
)
|
|
|
(62,274
|
)
|
Net cost at September 30, 2016
|
|
|
1,135,611
|
|
|
|
1,045,642
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2017
|
|
|
1,113,599
|
|
|
|
960,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
141,621
|
|
|
|
104,095
|
|
Subsidiary deconsolidation
|
|
|
(83,441
|
)
|
|
|
(23,666
|
)
|
Reclasification to non-current assets available for sale
|
|
|
(56,703
|
)
|
|
|
-
|
|
Transfers, disposals and adjustments
|
|
|
(20,092
|
)
|
|
|
(1,014
|
)
|
Deductions for sale of assets
|
|
|
(36,369
|
)
|
|
|
-
|
|
Depreciation, amortization
|
|
|
(147,656
|
)
|
|
|
(71,047
|
)
|
Net cost at September 30, 2017
|
|
|
910,959
|
|
|
|
968,654
|
|
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
As of September 30, 2016 and 2017, additions to property, plant and equipment comprise of acquisition of plant and equipment intended for the Group's operations.
As of September 30, 2016 and 2017, the amounts registered in Intangible assets comprise of investments in building the second Ancón-Huacho-Pativilca road section of the Panamericana Norte highway (concession under intangible model) and in preparation of wells located in Lots I, III, IV and V to provide oil and hydrocarbon exploitation services.
In June 2017, the Company sold all of GMD's shares, so property, plant, equipment and intangible assets were deconsolidated for S/83.4 million and S/23.7 million, respectively.
In September 2017, the Company agreed to sale corporate building located in Miraflores with option to repurchase Building between the fifth and eighth year of the lease term, therefore, its book value (S/56.7 million) was reclassified to non-current assets available for sale (Note 21).
Goodwill -
Management reviews the results of its business operations based on the type of economic activity carried out. The economic activities that have given rise to goodwill for the Group were engineering and construction, electro-mechanical works, mining services, IT services and telecommunications services.
Goodwill by cash-generating units is broken down as follows:
|
|
At December 31,
|
|
|
At Septemer 30,
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
Engineering and construction
|
|
|
98,587
|
|
|
|
97,157
|
|
Electromechanical
|
|
|
20,737
|
|
|
|
20,737
|
|
Mining and construction services
|
|
|
13,366
|
|
|
|
13,366
|
|
Telecommunications services
|
|
|
6,728
|
|
|
|
6,866
|
|
IT equipment and services
|
|
|
5,102
|
|
|
|
930
|
|
|
|
|
144,520
|
|
|
|
139,056
|
|
|
|
|
|
|
|
|
|
|
As a result of the impairment testing on goodwill performed by Management on an annual basis the recoverable amount of the related cash-generating unit (CGU) is determined based on its value in use. Value in use is determined based on the future cash flows expected to be generated by the assessed CGU
.
As a result of these assessments no provisions for impairment were required
.
As of September 3
0
, 2017 same criteria were applied as those in test impairment at December 31, 2016
.
This item comprises:
|
|
Total
|
|
|
Current
|
|
|
Non-current
|
|
|
|
At
|
|
|
At
|
|
|
At
|
|
|
At
|
|
|
At
|
|
|
At
|
|
|
|
December
31, 2016
|
|
|
September
30, 2017
|
|
|
December
31, 2016
|
|
|
September
30, 2017
|
|
|
December
31, 2016
|
|
|
September
30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdrafts
|
|
|
8,396
|
|
|
|
1,048
|
|
|
|
8,396
|
|
|
|
1,048
|
|
|
|
-
|
|
|
|
-
|
|
Bank loans
|
|
|
2,131,901
|
|
|
|
1,682,738
|
|
|
|
1,835,340
|
|
|
|
1,057,417
|
|
|
|
296,561
|
|
|
|
625,321
|
|
Leases
|
|
|
240,141
|
|
|
|
153,489
|
|
|
|
117,307
|
|
|
|
76,209
|
|
|
|
122,834
|
|
|
|
77,280
|
|
|
|
|
2,380,438
|
|
|
|
1,837,275
|
|
|
|
1,961,043
|
|
|
|
1,134,674
|
|
|
|
419,395
|
|
|
|
702,601
|
|
As of September 30, 2017 and December 31, 2016, this item comprises bank loans in local and foreign currencies for working capital purposes. These obligations bear interest at fixed rates which fluctuated between 1.1% and 14.2% in 2017 and between 1.0% and 14.4% in 2016.
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Interest
|
Date of
|
|
At
December
|
|
|
At
September
|
|
|
At
December
|
|
|
At
September
|
|
|
rate
|
maturity
|
|
|
31, 2016
|
|
|
|
30, 2017
|
|
|
|
31, 2016
|
|
|
|
30, 2017
|
|
GyM S.A.
|
|
|
2.40% / 8.00
|
%
|
|
|
2017 / 2020
|
|
|
|
492,910
|
|
|
|
549,261
|
|
|
|
187,029
|
|
|
|
104,570
|
|
Graña y Montero S.A.A.
|
|
Libor USD 3M
|
+
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
de 4.9% a 5.5
|
%
|
|
|
2017 / 2020
|
|
|
|
932,114
|
|
|
|
150,238
|
|
|
|
-
|
|
|
|
403,915
|
|
Viva GyM S.A.
|
|
|
7.00% / 11.22
|
%
|
|
|
2017 / 2018
|
|
|
|
201,609
|
|
|
|
157,665
|
|
|
|
-
|
|
|
|
7,025
|
|
GMP S.A.
|
|
|
3.65% / 6.04
|
%
|
|
|
2017 / 2020
|
|
|
|
77,857
|
|
|
|
40,649
|
|
|
|
71,453
|
|
|
|
90,502
|
|
CAM Holding S.A.
|
|
|
1.10% / 14.24
|
%
|
|
|
2017 / 2020
|
|
|
|
69,702
|
|
|
|
102,088
|
|
|
|
24,889
|
|
|
|
13,214
|
|
Adexus S.A.
|
|
|
3.63% / 5.90
|
%
|
|
|
2017 / 2019
|
|
|
|
42,782
|
|
|
|
57,516
|
|
|
|
13,190
|
|
|
|
6,095
|
|
CAM Servicios Perú S.A.
|
|
|
6.39% / 7.18
|
%
|
|
|
2017
|
|
|
|
3,620
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
GMD S.A.
|
|
|
6.20% / 7.47
|
%
|
|
|
2017
|
|
|
|
14,746
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
(Missing Graphic Reference) (Missing Graphic Reference) (Missing Graphic Reference) (Missing Graphic Reference)
|
|
|
|
|
|
|
|
|
|
|
1,835,340
|
|
|
|
1,057,417
|
|
|
|
296,561
|
|
|
|
625,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
i) Credit Suisse Syndicated Loan -
In December 2015, the Group entered into a medium term loan credit agreement for up to US$200 million (equivalent to S/672 million), with Credit Suisse AG, Cayman Islands Branch, Credit Suisse AG, Cayman Islands Branch and Credit Suisse Securities (USA) LLC. The initial term of the loan was set at five years, with quarterly installments starting to be paid on the 18th month. The loan accrued interest at a rate of three months Libor plus 3.9% per year. The proceeds were used to finance the equity interest in GSP. As of December 31, 2016, the outstanding balance amounted to US$148.5 million (equivalent to S/498.8 million), and it's included within the current portion.
On June 27, 2017, the Group renegotiated the terms of this loan to clear breaches related to the termination of the GSP concession. The new terms require repayment by December, 2020, with required prepayments to be made with the proceeds of asset sales of 40% in the first year and an additional 30% in the second year of the amendment. The syndicated loan accrues interest at LIBOR plus 4.90% per year. Under the amendment, the Group is prohibited from paying dividends until the loan is fully repaid. The loan is secured by (i) a lien on Concar's shares; (ii) a lien on Almonte's shares; (iii) a mortgage over certain real estate properties in Miraflores and Surquillo; (iv) liens on certain accounts; (v) a lien on GyM's share; (vi) a second lien on CAM's shares; (vii) a second lien on CAM Servicios del Perú S.A.'s shares; and (viii) a first lien on cash flows from the sale of certain assets.
The agreement contains certain covenants, including the obligation by the Group to maintain the following financial ratios during the term of the agreement: (1) the Consolidated EBITDA to Consolidated Interest Expense Ratio shall not be less than 3.5:1.0 commencing on April 1, 2018 and thereafter; (2) the Consolidated Leverage Ratio (as defined therein) shall not be greater than 3.5:1.0 at any time during the period commencing on December 31, 2016 and ending on March 31, 2017; 3.5:1.0 at any time during the period commencing on July 1, 2017 and ending on September 30, 2017; and no greater than 2.5:1.0 at any time thereafter; and (3) the Debt Service Coverage Ratio as of the last day of any fiscal quarter of the borrower, falling on or after the first anniversary of the closing date, shall not be less than 1.5:1.0, commencing on April 1, 2018 and thereafter.
As of to date, the outstanding balance of the loan is US$81.1 million (equivalent to S/264.9 million).
At December 31, 2016, the current balance includes US$129 million (equivalent to S/433.3 million) of the corporate guarantee issued by the Company to secure the bridge loan given to GSP, which was enforceable at that date. On June, 2017, the Company has reached a new term loan with Natixis, BBVA, SMBC and MUFJ for US$78.7 million (equivalent to S/264.8 million), the proceeds of which were used to repay the GSP bridge loan.
The maturity is June, 2020, with required prepayments to be made with the proceeds of asset sales of 40% in the first year and an additional 30% in the second year. The new term contains the following covenant: the consolidated leverage ratio shall not be more than 3.5:1.0 at any time, and
accrues
interest at LIBOR plus 4.50% per year, which increases to 5.00% during the second year and 5.50% during the third year. Under the new term, the Group is prohibited from paying dividends until the loan is fully repaid. Also, the new term is secured by (i) a first lien on our rights to receive the termination payment derived from the GSP termination (the "VCN"), (ii) a second lien on our shares of GyM and Concar; (ii) a second lien on our shares of Almonte; (iii) a second lien on certain real estate properties in Miraflores and Surquillo; (iv) a second lien on our shares of CAM; (v) a second lien on our shares of CAM Servicios del Perú S.A.; and (vi) a first lien on cash flows from the sale of certain assets.
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
As of to date, the outstanding balance of the new term loan is US$72.5 million (equivalent to S/236.8 million)
As of September 30, 2017, the Company maintained unused credit limits for S/1,256 million, which expire within one year (S/3,922 million as of December 31, 2016).
b)
Fair value of borrowings
-
The carrying amount and fair value of borrowings are broken down as follows:
|
|
Carrying amounts
|
|
|
Fair value
|
|
|
At December
|
|
|
At September
|
|
|
At December
|
|
|
At September
|
|
|
|
31, 2016
|
|
|
30, 2017
|
|
|
31, 2016
|
|
|
30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
2,380,438
|
|
|
|
1,837,275
|
|
|
|
2,391,375
|
|
|
|
1,918,253
|
|
The fair value is based on cash flows discounted using a rate based on the borrowing rate of 1.1% and 13.3% (1.3% and 14.3% in 2016). It should be noted that the interest rate used are those applicable and negotiated by each Company.
This item is broken down as follows:
|
|
Total
|
|
|
|
|
|
Current
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
At
|
|
|
At
|
|
|
At
|
|
|
At
|
|
|
At
|
|
|
At
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GyM Ferrovías (a)
|
|
|
604,031
|
|
|
|
603,669
|
|
|
|
20,551
|
|
|
|
14,504
|
|
|
|
583,480
|
|
|
|
589,165
|
|
Norvial (b)
|
|
|
363,683
|
|
|
|
349,338
|
|
|
|
25,540
|
|
|
|
25,424
|
|
|
|
338,143
|
|
|
|
323,914
|
|
|
|
|
967,714
|
|
|
|
953,007
|
|
|
|
46,091
|
|
|
|
39,928
|
|
|
|
921,623
|
|
|
|
913,079
|
|
In February 2015 subsidiary GyM Ferrovías issued corporate bonds under the U.S. Regulation S. This issue was carried out in Peruvian Soles VAC (the Spanish acronym for constant value update) for a total amount of S/629 million. The issues costs for this transactions were for S/22 million. Maturity of these bonds is November 2039 and bear interest at a rate of 4.75% (plus VAC adjustment), they have a risk rating of AA+ (local grading) granted by Apoyo & Asociados Internacionales Clasificadora de Riesgo and a collateral structure that includes a mortgage on the concession to which GyM Ferrovías is a concessionaire, security on the shares of GyM Ferrovías, Assignment of the collection rights arising from the Management Trust, a Cash Flow and Reserve Trust for the Service of the Debt, Operation and Maintenance and in-progress Capex. On September 30, 2017 the Group made a payment of
S/53 million.
Capital raised from bond issue were used in amortizing a short-term loan with Banco de Crédito del Perú – BCP for S/400 million, funding the reserve accounts, payment of costs of bond issue and partial repayment of the subordinated loan obtained from parent Company by GyM Ferrovías.
(All amounts are expressed in thousands of S/ unless otherwise stated)
UNAUDITED
On September 3
0
, 2017 the balance includes accrued interest
payable for S/3 million
.
As part of the process of bond structuring, GyM Ferrovías engaged to adhere to the following covenants: