GRAÑA Y MONTEROinvestorrelations.granaymontero.com.pe/sites/granaymontero... · Corporate Presentation 2Q2016 Corporate Presentation 2Q2016 Real Estate Revenues and EBITDA (US$ in

GRAÑA Y MONTERO

Second Quarter 2016

Corporate Presentation

Business highlights

Corporate Presentation 2Q2016Corporate Presentation 2Q2016

Largest Engineering & Construction company in Peru measured by revenues

83 years of recognized operational excellence and significant international experience

Undisputed reputation, reliability and highest corporate governance standards

Revenues of US$ 2,295 MM and EBITDA of US$ 228 MM in 2015

Backlog and recurrent business of US$4.65bn as of June 2016– 2.37x revenues

3,615 engineers and over 30,000 employees

Listed in the NYSE since July 2013

GH Holding Group (Jose Graña, Chairman): 17.8%

Bethel Enterprises Inc. (Carlos Montero, Director): 5.1%

Byron Development (Mario Alvarado, Director and CEO): 3.4%

Hernando Graña (Director): 2.4%

Other executives and former executives: 3.5%

Internal Shareholders

Shareholders – August 2016

(*) Includes only AFPs holdings reported at CAVALI (Peruvian clearing house)

1

Grupo Graña y Montero at a glance

AFPs (*)12.8%

Internal Shareholders

32.2%

ADSs Program40.4%

Others14.7%


Our Business Segments

LTM2016 Revenues by business segment LTM2016 Net Income by business segment

Largest E&C company

in Peru

Leading infrastructure

concessionaire in Peru

Largest apartment building

developer in Peru

Leader in infrastructure O&M and

complementary services

LTM2016 EBITDA by business segment

US$ 1,961 MM

(S/. 6, 527 MM)

US$ 231 MM

(S/. 768 MM)

US$ 45 MM

(S/. 151 MM) 2

Engineering & Construction

65%

Infrastructure14%

Technical Services

16%

Real Estate4%

Holding1% Engineering &

Construction25%

Infrastructure34%

Technical Services

14%

Real Estate16%

Holding11% Infrastructure

25%

Technical Services

17%

Real Estate5%

Holding53%


Engineering and Construction

Revenues and EBITDA

(US$ in millions)

Main companies:

• GyM: Construction company, founded in 1933, comprised of three divisions: electromechanic

construction, civil construction and building construction.

• Stracon GyM: GyM subsidiary since 2011, specialized in mining services.

• GMI: Engineering consulting firm since 1984 consisting in two different divisions: Supervision &

Engineering and Geomatics.

• Vial y Vives- DSD S.A.: E&C company formed from a merger between two Chilean companies,

Vial y Vives and DSD Construcciones y Montajes, which are companies we acquired in 2012

and 2013, respectively.

• Morelco S.A.: Colombian company acquired in 2014, specialized in electromechanical

assemblies, civil works, and services for the oil and gas industry as well as energy industry

Relevant Facts:

• Since September 2015, GyM holds a 29% stake of the construction consortium of the Southern

Gas Pipeline, representing an addition of US$ 1 billion to the backlog

• Awarding of a contract for US$ 135 million for the construction of 14 schools in Colombia

• GyM obtained the construction contract for the extension of Line 1 of Lima Metro for US$ 123

million

• Morelco was awarded the Buena Pro of a contract for US$ 149 million, for the execution of the

Regional Transmission System located in the Colombian Atlantic Coast

3

1,3821,457

1,685 1,712

909

562 152

195

155

78

48 32

0

50

100

150

200

250

300

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2012 2013 2014 2015 2Q2015 2Q2016

Revenues EBITDA


206

244

296 300

149 135

8387 103

8744

40

0

50

100

150

200

250

300

0

50

100

150

200

250

300

350

2012 2013 2014 2015 2Q2015 2Q2016

Revenues EBITDA

Infrastructure

Revenues and EBITDA

Main companies:

• Norvial: Concessionaire of Red Vial 5 Highway

• Survial: Concessionaire of 1st Tranche of the Interoceanic Highway

• Concesión Canchaque: Concessionaire of the Bs As-Canchaque Highway

• Concesionaria La Chira: Concession for the construction, operation and maintenance of a

waste water treatment plant for Lima

• Ferrovías GyM: Concessionaire of Line 1 of the Lima Metro

• GMP: Oil production (Blocks I, III, IV and V), gas processing plant and operation of ten fuel

terminals in Peru

• Concesionaria Via Expresa Sur: Concession to build, maintain, and operate a 4.6km

extension of one of the main highways in Lima

• COGA: Company responsible for the operation and maintenance of the transportation

system of Transpotadora de Gas del Perú (TgP)

• Chavimochic: Concession to build the water infrastructure of the third stage of the Project

Relevant Facts:

• In September 2015, a 20% stake was acquired in the Southern Gas pipeline concessionaire

for US$ 215 million

• GyM Ferrovías signed an addendum to the Concession Contract for the extension of Line 1

of Lima Metro for US$ 410 million

(US$ in millions)

4


Real Estate

Revenues and EBITDA

(US$ in millions)

Main companies:

• Viva GyM: Real estate development company

• Almonte: Subsidiary of Viva GyM and owner of a 800 Ha. of undeveloped land,

located 30 Kms to the south of Lima (Lurín)

Affordable Housing Projects under execution:

• Parques del Callao, Parques de Ancon, Parque Comas

• Parques de Piura, Nuevo Chimbote, Parques de Huancayo (Provinces)

Housing Projects under execution:

• El Rancho, Pezet (San Isidro) and Klimt (San Isidro)

Commercial Real Estate projects under execution:

• Real Dos, Panorama (offices)

5

2012 2013 2014 2015 2Q2015 2Q2016

Units delivered 1,368 1,757 831 833 225 236

Units sold 2,017 1,134 642 903 448 883

94

112

75

63

15

31

36

48

24 29

7 17

0

50

100

150

200

250

300

0

20

40

60

80

100

120

2012 2013 2014 2015 2Q2015 2Q2016

Mil

lare

s

Revenues EBITDA


Main companies:

• GMD: Provider of IT services and business solutions through four divisions: (i) Systems

Integration, (ii) IT Outsourcing, (iii) Application Outsourcing, (iv) Business Processes Outsourcing.

• Concar: Operation and maintenance of infrastructure assets. It currently operates more than

5,000km of Peruvian roads and highways, including three private concessions, in addition to the

Lima Metro.

• CAM: provides field and specialized electrical services in Chile as well as in Brazil, Colombia,

and Peru.

• Adexus: Provider of IT services with presence in Peru, Ecuador, Argentina and Colombia.

Relevant Facts:

• Concar was awarded two contracts for the service management and road maintenance in the

highlands of Peru for US$ 99.6 million with Provias Nacional

• CAM Colombia obtained a contract for the client Electricaribe for US$ 63 million in January 2016

• CAM obtained a contract for services of comprehensive operations for Edelnor for US$ 48

million

Technical Services

Revenues and EBITDA

(US$ in millions)

6

425 418 404

337

169 174

44

39

2133

13 15

0

50

100

150

200

250

300

0

50

100

150

200

250

300

350

400

450

2012 2013 2014 2015 2Q2015 2Q2016

Revenues EBITDA

9Corporate Presentation

Financial PerformanceFinancial PerformanceFinancial Performance


Consolidated EBITDA

(US$ in millions)

Consolidated Results

Consolidated Net Profit

Consolidated Margins

% over Total Revenues

(US$ in millions)

Consolidated Revenues

(US$ in millions)

(US$ in millions)

8

2,051 2,134 2,345 2,295

1,184 850

-

500

1,000

1,500

2,000

2,500

2012 2013 2014 2015 2Q2015 2Q2016

114 115 100

26 13

32

-

20

40

60

80

100

120

2012 2013 2014 2015 2Q2015 2Q2016

314 369

306

229

110 113

0

50

100

150

200

250

300

350

400

2012 2013 2014 2015 2Q2015 2Q2016

5.5%5.4%

4.3%

1.1%

13.6%

16.8%

13.6%

9.0%

15.3%

17.3%

13.1%

10.0%

1.1%

3.7%9.4%

11.0%

9.3%

13.3%

0%

5%

10%

15%

20%

25%

2012 2013 2014 2015 2Q2015 2Q2016

Net Margin Gross Margin EBITDA Margin


Investments

Investments

(US$ in thousand)

Investments by Business Area – 2Q2016

As a percentage

9

(US$ in thousands) 2012 2013 2014 2015 2Q2016

Engineering & Construction 163,503 73,059 162,245 36,393 10,049

Infrastructure 118,335 169,198 75,879 72,476 18,952

Real Estate 50,298 27,075 39,961 12,120 347

Technical Services 15,593 13,403 40,441 19,314 7,036

Holding 4,564 9,686 66,951 137,453 66,143

Total 352,293 292,421 385,477 277,756 102,528

352,293

292,421

385,477

277,756

82,387 102,528

2012 2013 2014 2015 2Q2015 2Q2016

Engineering & Construction10%

Infrastructure18%

Real Estate0.3%

Technical Services7%

Holding65%


Financial Debt

Debt by Business Area – 2Q2016

Maturity of Gross Debt – 2Q2016

Debt by Currency – 2Q2016

(US$ in thousand)

10

Less than Between 1 Between 2 More thanTotal

1 year and 2 years and 5 years 5 years

Other loans 897,041 191,703 499,730 - 1,588,474

Leasing 124,898 76,405 20,230 18,648 240,272

Ferrovías & Norvial Bond Issue 38,651 24,032 52,718 777,081 892,482

Total debt S/. 1,060,590 292,140 572,678 795,729 2,721,228

Total debt US$ 322,172 88,742 173,961 241,716 826,618


33%

Technical Services

6%

Infrastructure39%

Real Estate8%

Holding14%

Sol55%

US Dollars36%

Chilean Peso6%

Colombian Peso3% Bolivian Peso

0.4%


Composition of Indebtedness

11

EBITDA - LTM

Ratios

Financial Debt

(US$ thousands) 2014 1Q2015 2Q2015 3Q2015 2015 1Q2016 2Q2016

Working Capital + Leasing 361,588 398,651 459,798 525,166 421,550 427,421 386,857

Project Finance 224,420 297,079 298,386 307,522 302,936 321,330 323,303

GSP Contribution Financing - - - - 30,113 115,966 116,458

Total 586,008 695,729 758,184 832,687 754,599 864,717 826,618

(US$ thousands) 2014 1Q2015 2Q2015 3Q2015 2015 1Q2016 2Q2016

E&C + Real Estate + Technical Services 202,813 182,291 169,397 132,588 140,858 141,138 148,303

Infrastructure 103,382 95,020 96,992 95,521 87,210 91,556 82,567

Total 306,195 277,311 266,389 228,110 228,068 232,694 230,870

2014 1Q2015 2Q2015 3Q2015 2015 1Q2016 2Q2016

Debt/Ebitda (E&C + Real Estate + Technical Services) 1.78 2.19 2.71 3.96 2.99 3.03 2.61

Debt/Ebitda (Infrastructure) 2.17 3.13 3.08 3.22 3.82 4.78 5.33

Consolidated Debt/Ebitda 1.91 2.51 2.85 3.65 3.31 3.72 3.58



64%

Infrastructure16%

Real Estate3%

Technical Services

17%

US$ 4,170 MMUS$ 3,935 MM US$ 3,765 MM

US$ 4,038 MM US$ 4,155 MM

US$ 404 MM

US$ 394 MM US$ 580 MMUS$ 448 MM

US$ 493 MM

2.25

2.03

1.85

1.95

2.37

0.00

1.00

2.00

3.00

US$ 0 MM

US$ 1,000 MM

US$ 2,000 MM

US$ 3,000 MM

US$ 4,000 MM

US$ 5,000 MM

2012 2013 2014 2015 2Q2016

Backlog Recurrent Businesses Backlog + Rec. Businesses/ Revenues Ratio

By segments

Total Backlog + Recurrent Businesses

Backlog and Recurrent Businesses

US$ 4,574 MM US$ 4,329 MM US$ 4,345 MM US$ 4,486 MM US$ 4,648 MM

By type of contract (Only E&C)

12

Cost plus Fee31%

EPC39%

Lump Sum9%

Unit Price21%


(*) For June 2015, Ecuador is included in Panamá and Bolivia

Note: Outer circle corresponds to June 2016 data, whilst inner circle corresponds to June 2015 data

Construction/Non-Construction


By country

By type of client By end-market

(June 2015 – June 2016)

13

73%

15%

9%3%

80%

6%

12%2%

Perú

Chile

Colombia

Panamá, Bolivia (*)

75%

4%

21%

74%

11%

15%

Private

Public

Concessions

7%

28%

20%16%

4%

7%

15%3%

1%

21%

37%

10%

3%

10%

16%

2%

Mining Projects

Mining Services

Oil and Gas

Electricity

Water and Sewage

Real Estate

Transport

Others

68%

32%

56%

44%

Non-Construction

Construction



(US$ in thousand)

14

CompanyInitial

BacklogExecutedBacklog

New RequestsBacklog

Annual Backlog

TOTAL IQ - 2016 IIQ - 2016 2016 2017 2018+

GyM 1,734,335 255,875 334,899 48,837 286,062 1,813,359 257,950 783,441 771,967

Stracon GyM 1,147,838 179,772 18,983 7,110 11,873 987,049 148,662 226,410 611,977

VyV-DSD 37,831 40,042 5,417 7,932 -2,515 3,205 3,205 0 0

Morelco 163,804 43,130 96,753 663 96,089 217,426 43,906 76,975 96,545

CAM Perú 11,362 11,300 5,227 3,871 1,356 5,289 3,972 813 504

GMI 34,261 17,411 18,754 5,301 13,453 35,604 12,799 17,721 5,084

Engineering & Construction 3,129,431 547,531 480,033 73,714 406,318 3,061,933 470,495 1,105,360 1,486,077

Survial 24,205 3,926 4,397 2,263 2,134 24,677 4,231 8,146 12,300

Canchaque 15,227 1,345 1,280 686 594 15,163 1,245 10,232 3,685

La Chira 5,308 3,059 1,981 -1,197 3,178 4,230 1,656 1,029 1,544

Línea 1 Metro de Lima 211,758 36,309 18,948 -4,164 23,112 194,397 31,693 64,300 98,404

Infrastructure 256,498 44,638 26,606 -2,412 29,018 238,467 38,826 83,707 115,933

Viva GyM 111,038 30,572 63,572 45,160 18,412 144,038 77,860 63,180 2,998

Real Estate 111,038 30,572 63,572 45,160 18,412 144,038 77,860 63,180 2,998

GMD 119,427 38,922 44,637 24,433 20,204 125,142 33,847 48,965 42,329

Concar 128,742 40,581 124,517 117,193 7,324 212,679 40,863 90,668 81,147

CAM Perú 364,867 94,035 185,313 172,500 12,813 456,145 103,351 148,960 203,833

Technical Services 613,036 173,538 354,467 314,126 40,341 793,965 178,062 288,594 327,309

Eliminations -72,196 -22,296 -33,364 -36,693 3,329 -83,264 -26,797 -22,587 -33,880

Total 4,037,807 773,982 891,314 393,896 497,419 4,155,139 738,446 1,518,255 1,898,438

Recurrent Businesses

GMP 327,080 54,769 74,285 18,586 55,699 346,596 57,463 95,304 193,829

Norvial 147,274 34,733 57,716 46,609 11,107 170,257 49,486 53,612 67,159

Eliminaciones -26,117 -13,208 -11,102 -10,657 -444 -24,011 -2,032 -8,792 -13,188

Total 448,237 76,294 120,899 54,538 66,362 492,843 104,917 140,124 247,801

Total Backlog + RecurrentBusinesses

4,486,044 850,276 1,012,214 448,434 563,780 4,647,981 843,363 1,658,379 2,146,240

17Corporate Presentation

What’s Ahead?1


Infrastructure Pipeline

Water treatment and sewage

8%

Telecommunications17%

Transport36%

Energy19%

Health and Education

15%

Hydraulic Infrastructure

5%

Source: Peruvian Association for the Promotion of National Infrastructure (AFIN), Proinversión (10Mar16)

(*) Table only reflects most relevant projects that we are evaluating

Project Location StatusEstimated

Investment(US$ MM)

Estimatedawarddate

Toll Roads

Mountain Range

Longitudinal Road 4

Junín, Ayacucho,

Huancavelica,

Apurímac, Ica

Anounced 446.0 4Q16

Mountain Range

Longitudinal Road 5Cusco and Puno

Not

contested

To be

defined-

Rail

Huancayo-Huancavelica

Railway

Junín and

HuancavelicaAnnounced 204.0 3Q16

Line 3 and 4 Lima Metro LimaNot

contested

To be

defined-

Oil and Gas

LPG Supply System for

Lima and CallaoLima and Ica Announced 250.0 -

Water treatment

Headworks and Water

Supply Infrastructure for

Lima

Junín and Lima Announced 600.0 4Q16

~US$160 bn

investment gap

(2015-2016)

Infrastructure Investment Gap in Peru Proinversión Project Portfolio 2016 (*)

16


Management of Investment Promotion

Infrastructure Pipeline

Submitted and awaitingreply from Proinversión

Admissible

Declaration of relevanceand priority

Development of pre-investment studies

Declaration of interest

Selection Process and contract is signed

Declaration of viabilityunder SNIP

90 days for others to present propposals

Min

imu

mTim

e Frame

: 18 mo

nth

sProinversión

MEF

Proinversión/MEF

MEF

Proinversión

2 PIs are in thedevelopment of studies phase forUS$ 562 MM

4 PIs have been

declared of relevance

and priority for

US$ 2,007 MM

17

Flowchart of the process of approval


$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

S/. 0.00

S/. 1.00

S/. 2.00

S/. 3.00

S/. 4.00

S/. 5.00

S/. 6.00

Sep

-15

Sep

-15

Oct

-15

Oct

-15

No

v-1

5

No

v-1

5

Dec

-15

Dec

-15

Jan

-16

Jan

-16

Feb

-16

Feb

-16

Mar

-16

Mar

-16

Mar

-16

Ap

r-1

6

Ap

r-1

6

May

-16

May

-16

Jun

-16

Jun

-16

Jul-

16

Jul-

16

Au

g-1

6

Au

g-1

6

Au

g-1

6

Sep

-16

GRAMONC1 GRAM US

Stock Performance

GRAMON –September 26, 2016

Shares (million) 660.1

Market Cap (S/. MM) 3,762.3

VWAP (3M) (S/.) 5.39

52 week high (S/.) 5.90

52 week low (S/.) 1.60

Average daily traded volume (3M) (S/. MM) 2.0

GRAM- September 26, 2016

ADSs (million) 132.0

Market Cap (US$ MM) 1,094.4

VWAP (3M) (US$) 8.04

52 week high (US$) 8.96

52 week low (US$) 2.18

Average daily traded volume (3M) (US$ MM) 1.1

18

Closing Price 26Sep16:GRAM: US$ 8.29

GRAMON: S/. 5.65

Unsa

ved

Docu

me

nt / 1

2/1

1/2

01

2 /

14

:08

15

Appendix

AppendixAppendix


“To be recognized as the most reliable engineering services and infrastructure group inLatin America”

Vision and strategic goals

3 Continue growing by ‘exporting’ our capabilities

4 Disciplined approach to capital

5 Continue fostering our corporate values throughout the organization

2Maintain and reinforce our position as the leading contractor for complex projects in Peru and other key markets

1 Expand our Infrastructure businesses

20


67.0%

99.9%

99.9%

75.0%

50.0%

95.0%

90.54%(1)

50.4%

89.37%

99.6%

75.0%

Construction services

Engineering services

Real Estate development

Land parcels

IT services

Operation and maintenance

of infrastructure assets

Electricity networks

services

Toll-road concession

Water plant concession

O&G production, gas processing & fuel storage



Mass transit system concession

Contract mining services

(1) 38.97% of the share capital in Viva GyM is held by our subsidiary GyM.

Engineering and Construction services in Chile

Corporate Structure

Highway concession

100.0%

Engineering and Construction services for Oil&Gas industry in Colombia

51.0%

Operation and maintenance of gas pipelines

52.0%

IT services

21

98.23%

87.59%

86.22%

89.40%

70.00%



Consolidated Net Profit

Consolidated EBITDA Consolidated Margins

Consolidated Revenues

(S/. in millions)

(S/. in millions)

(S/. in millions) % over Total Revenues

(S/. in millions)

22

5,232 5,968

7,009 7,832

3,764 2,799

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2012 2013 2014 2015 2Q2015 2Q2016

290 320 300

89 40

105

-

50

100

150

200

250

300

350

2012 2013 2014 2015 2Q2015 2Q2016

801

1,031 915

783

351 372

-

200

400

600

800

1,000

1,200

2012 2013 2014 2015 2Q2015 2Q2016

5.5%5.4%

4.3%

1.1%

13.6%

16.8%

13.6%

9.0%

15.3%

17.3%

13.1%

10.0%

1.1%

3.7%

9.4%

11.0%9.3%

13.3%

0%

5%

10%

15%

20%

25%

2012 2013 2014 2015 2Q2015 2Q2016

Net Margin Gross Margin EBITDA Margin



23

Income Statement

(Thousands US$) 2012 2013 2014 2015 2Q2015 2Q2016

Revenues 2,050,915 2,134,233 2,344,824 2,294,882 1,184,054 850,276

Gross Profi t 279,132 359,321 318,357 205,921 110,770 93,140

Operating Profi t 207,979 241,020 182,448 94,379 48,182 49,308

Financia l expenses (12,331) (15,451) (15,749) (16,990) (9,583) (15,682)

Participation in Associates - 418 - - - -

Dividends Perceived 237 12,004 17,881 11,244 4,909 9,413

Exchange rate di fference 8,281 (25,185) (14,815) (24,276) (11,131) 5,714

Profi t before income tax 204,166 212,806 169,765 64,357 32,377 48,753

Income tax (60,594) (65,247) (48,911) (22,502) (10,563) (11,693)

Minori ty Interests (29,909) (32,980) 120,854 (15,754) (9,248) (5,193)

Net Profit 113,663 114,579 100,282 26,101 12,566 31,867

Depreciation & Amortization 95,846 92,682 86,999 89,782 45,289 41,374

EBITDA 313,950 368,627 306,195 229,376 110,349 113,151

Balance Sheet

(Thousands of US$) 2012 2013 2014 2015 2Q2015 2Q2016

Total Assets 1,957,125 2,257,824 2,586,116 2,639,125 2,588,657 2,704,965

Cash 305,807 343,138 273,805 162,321 226,598 171,140

Financia l Debt 331,429 284,629 586,008 754,599 758,184 826,618

Total Equity 696,547 1,143,362 1,063,875 931,608 990,484 978,520

Financial Keys

Gross Margin 13.6% 16.8% 13.6% 9.0% 9.4% 11.0%

Net Margin 5.5% 5.4% 4.3% 1.1% 1.1% 3.7%

EBITDA Margin 15.3% 17.3% 13.1% 10.0% 9.3% 13.3%

Financia l Debt /EBITDA 1.10 0.77 1.91 3.29 3.40 3.60

Financia l Debt /Equity 0.48 0.25 0.55 0.81 0.77 0.84

ROE 20.6% 12.9% 10.7% 2.8% 7.8% 5.8%


Results by Business Area – 2Q2016

24

Revenues 562,347 135,409 30,572 173,538 850,276

GROSS PROFIT 43,296 26,801 9,275 23,569 93,140

General Expenses (37,821) (5,527) (3,050) (14,376) (56,863)

Other Operational Expenses 3,990 (128) 107 619 4,533

Other Expenses - (62) - 6 (55)

Profi t from the sa le of investments - - - - 8,554

OPERATIONAL INCOME 9,465 21,084 6,332 9,819 49,308

Financia l Expenses (6,752) (1,729) (1,766) (2,934) (15,682)

Participation in Associates 2,677 363 (113) 82 9,413

Exchange rate di fference 1,982 203 41 664 5,714

PRETAX INCOME 7,372 19,921 4,493 7,631 48,752

Taxes (2,912) (5,784) (1,105) (2,873) (11,692)

Minori ty Interests 1,037 (4,258) (2,415) (590) (5,194)

NET INCOME 5,498 9,879 973 4,168 31,866

EBITDA 31,609 39,631 16,668 15,163 113,151

Financial Ratios

Gross Margin 7.7% 19.8% 30.3% 13.6% 11.0%

Operating Margin 1.7% 15.6% 20.7% 5.7% 5.8%

Net Margin 1.0% 7.3% 3.2% 2.4% 3.7%

EBITDA Margin 5.6% 29.3% 54.5% 8.7% 13.3%

Financia l Debt 272,122 323,303 66,985 47,751 826,618

Financia l Debt /EBITDA 4.50 3.90 1.70 1.40 3.60

ROE -6.3% 13.3% 7.0% 28.2% 5.8%

Technical

Services Consolidated

Statement of Income

(Thousands of US$)

Engineering &

Construction Infrastructure Real Estate


Workforce

(1) The number of manual laborers, who form part of our network of approximately 40,000 manual laborers, varies in relation to the number and size of projects we have in process at any particular time.

(2) Includes engineers, professionals, technical specialists and manual laborers employed by our joint operations.

(3) Occasionally, we employ subcontractors for particular aspects of our projects, such as carpenters, specialists in elevator installation and specialists in glassworks. We are not dependent upon any particular

subcontractor or group of subcontractors.

(4) Morelco is included since June 2015 25

Workforce December 2012 December 2013 December 2014 March 2015 June 2015 December 2015 March 2016 June 2016 (4)

Employees 11,399 13,109 15,841 16,033 15,849 14,706 14,752 17,385

Manual Laborers (1) 11,855 12,759 24,259 22,602 20,920 11,026 7,024 6,407

Joint Operations Employees (2) 4,973 7,301 6,662 5,353 3,283 3,317 2,635 2,477

Subcontracted (3) 4,452 4,758 5,257 5,073 5,856 3,857 5,911 5,527

Total 32,679 37,927 52,019 49,061 45,908 32,906 30,322 31,796

0

10,000

20,000

30,000

40,000

50,000

60,000

December 2012 December 2013 December 2014 March 2015 June 2015 December 2015 March 2016 June 2016 (4)

Employees Manual Laborers (1) Joint Operations Employees (2) Subcontracted (3)


• Graña y Montero (GRAMONC1) is listed in the Lima Stock Exchange

since 1997 and in the NYSE since July 2013 (GRAM)

• GRAMONC1 is included in the Corporate Governance Index of the

Lima Stock Exchange

• Board of Directors

The Corporate CEO is a Board Member

The Board Committees are integrated mainly by External

Directors

Subsidiaries have at least one (1) External Board Member within

their Boards

• Recognitions

Member of the Companies Circle of the Latin American

Corporate Governance Roundtable since October 2010

Winner of the “Llave de la BVL” in 2014, 2010 and 2009

Recognized by Euromoney as:

• Best managed Company in Latin America 2014 -

Overall

• Best managed Company in Peru

• Best Managed Company in the Construction & Cement

Sector in Latin America

• Most transparent accounts

Corporate Governance

Internal Directors Independent Directors

José Graña Miro Quesada Pedro Pablo Errazuriz

Carlos Montero Graña Federico Cúneo de la Piedra

Hernando Graña Acuña Hugo Santa María Guzmán

Mario Alvarado Pflucker Mark Hoffmann Rosas

26


Disclaimer

Forward-looking statements

This presentation contains forward-looking statements. Forward-looking statements convey our current expectations or forecasts of future events. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from the forward-looking statements that we make. Forward-looking statements typically are identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “project,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Any or all of our forward-looking statements in this presentation may turn out to be inaccurate. Our actual results could differ materially from those contained in forward-looking statements due to a number of factors, including, among others: global macroeconomic conditions, including commodity prices, and economic, political and social conditions in the markets in which we operate, particularly in Peru; major changes in Peruvian government policies at the national, regional or municipal levels, including in connection with infrastructure concessions, investments in infrastructure and affordable housing subsidies; social conflicts in Peru that disrupt infrastructure projects, particularly in the mining sector; interest rate fluctuations, inflation and devaluation or appreciation of the nuevo sol in relation to the U.S. dollar (or other currencies in which we receive revenue); our ability to continue to grow our operations, both in Peru and internationally; the level of capital investments and financings available for infrastructure projects of the types that we perform, both in the private and public sectors; competition in our markets, both from local and international companies; our ability to complete acquisitions on favorable terms or at all and to integrate acquired businesses and manage them effectively post-acquisition; performance under contracts, where a failure to meet schedules, cost estimates or performance targets on a timely basis could result in reduced profit margins or losses and impact our reputation; developments, some of which may be beyond our control, that affect our reputation in our markets, including a deterioration in our safety record; industry-specific operational risks, such as operator errors, mechanical failures and other accidents; availability and costs of energy, raw materials, equipment and labor; our ability to obtain financing on favorable terms; our ability to attract and retain qualified personnel; our ability to enter into joint operations, and rules involved in operating under joint operation or similar arrangements; our exposure to potential liability claims and contract disputes, including as a result of environmental damage alleged to have been caused by our operations; our and our clients’ compliance with environmental, health and safety laws and regulations, and changes in government policies and regulations in the countries in which we operate; negotiations of claims with our clients of cost and schedule variances and change orders on major projects; volatility in global prices of oil and gas; the cyclical nature of some of our business segments; limitations on our ability to operate our concessions profitably, including changes in traffic patterns, and limitations on our ability to obtain new concessions; our ability to accurately estimate the costs of our projects; changes in real estate market prices, customer demand, preference and purchasing power, and financing availability and terms; our ability to obtain zoning and other license requirements for our real estate development; changes in tax laws; natural disasters, severe weather or other events that may adversely impact our business; and certain other factors disclosed in our registration statement on Form F-1 on file with the SEC.

The forward-looking statements in this presentation represent our expectations and forecasts as of the date of this presentation. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. In light of the risks and uncertainties described above, the future events and circumstances discussed in this presentation might not occur and are not guarantees of future performance.

27

30Corporate Presentation30

Contacts:

Mónica Miloslavich

Chief Financial Officer

(511) 213 6565

[email protected]

Samantha Ratcliffe Leiva

Head of Investor Relations

(511) 213 6573

[email protected]

www.granaymontero.com.pe

mailto:[email protected]

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GRAÑA Y MONTEROinvestorrelations.granaymontero.com.pe/sites/granaymontero... · Corporate Presentation 2Q2016 Corporate Presentation 2Q2016 Real Estate Revenues and EBITDA (US$ in