On March 25, 2020, the U.S. Securities and Exchange Commission (the SEC)
issued an order (Release No. 34-88465) (the Order) (modifying and superseding Release No. 34-88318 issued on March 4, 2020) providing
conditional relief to public companies that are unable to timely comply with their filing obligations as a result of the Novel Coronavirus 2019 (COVID-19). Graña y Montero S.A.A. (the
Company) will rely on the Order for the extension of the filing of its Annual Report on Form 20-F for the 2019 year.
On March 15, 2020, due to the outbreak of the COVID-19 pandemic, the Peruvian government declared
a national state of emergency and enacted a mandatory quarantine, beginning March 16, 2020. The government closed all international borders and suspended all travel within Peru. The state of emergency also prohibits large gatherings, institutes
a curfew, and limits the use of private vehicles, among other limitations. As of the date hereof, the Peruvian government has extended the quarantine and curfew until May 10, 2020. Persons in
non-compliance may face fines or detention. The extraordinary government measures have limited access to our facilities by executives, support staff and professional advisors. In addition, since early March
2020, management of the Company has been focused on assessing and overcoming the unprecedented challenges posed by the COVID-19 pandemic and the extraordinary government measures for the Companys
business and stakeholders. These factors have resulted in a delay in the preparation of the Companys Annual Report on Form 20-F for the 2019 year, including the completion of the Companys audited
consolidated financial statements for the 2019 year.
The Company continues to work to complete all necessary processes to file its Annual
Report as soon as possible and expects to file on or before June 14, 2020, within the time period proscribed by the Order (that is, within 45 days from the original filing deadline of April 30, 2020).
As a result of the ongoing COVID-19 pandemic and government measures to curb the spread of the virus,
the Company expects to include a risk factor in its annual report substantially similar to the following, which may be updated prior to filing:
The
ongoing COVID-19 pandemic and government measures to contain the spread of the virus are disrupting economic activity in the countries where we operate and adversely affecting our business, results of
operations and financial condition.
The recent outbreak of the Novel Coronavirus 2019
(COVID-19) pandemic, which has been declared by the World Health Organization to be a public health emergency of international concern, has spread across the world since the end of 2019. The spread
of the virus in Latin America has to date been more limited than in China, Europe and the United States; however, we cannot assure you that the virus will not spread widely in the region. In such event, the countries where we operate are likely to
have less resources to address the health care effects of the pandemic. In response, countries around the worldincluding Peru as well as Chile and Colombiahave adopted extraordinary measures to contain the spread of COVID-19, including imposing travel restrictions, requiring closures of non-essential businesses, establishing restrictions on public gatherings, instructing residents to
practice social distancing, issuing stay-at-home orders, implementing quarantines and similar actions. Depending on how the spread of the virus continues to evolve,
governments may extend these measures for longer periods.
The COVID-19 pandemic and these
government measures have significantly increased economic uncertainty and are likely to cause a global recession. Moreover, the impact of the pandemic on economic activity has been sudden and severe, and we cannot predict the extent to which
economies in the countries where we operate will ultimately be impacted. Even if the initial outbreaks of COVID-19 subside, we cannot predict whether subsequent outbreaks will reoccur, or whether governments
will implement longer-term measures that continue to affect economic activity and capital investment levels. As a result, the negative impact of COVID-19 may continue well beyond the containment of the virus.
In response to the sudden decline in economic activity, governments around the world, including in Latin America, have announced large stimulus programs to assist families and businesses. However, we cannot assure you that these programs will be
sufficient to reactivate economy activity; moreover, the governments in the countries where we operate are likely to have less resources to stimulate their local economies.