GRAA Y MONTERO

Conference Call
2Q 2016 Results Presentation

July 26, 2016

Financial
Performance
Discussion
of Financial Results
Financial Performance
2Q 2016 Results Presentation

Financial Results Overview

The Group achieved Revenues of S/. 2,799.0 MM during 2Q2016, a 25.6% decrease compared to 2Q2015

Gross Profit amounted to S/. 306.6 MM in 2Q2016, decreasing 12.9% compared to 2Q2015

EBITDA was S/. 372.5 MM in 2Q2016, higher by 6.2% than the result obtained in 2Q2015

Net Income registered an increase of 162.2%, reaching S/. 104.9 MM in 2Q2016

2,061

NET INCOME BY QUARTER (S/.MM)

EBITDA BY QUARTER (S/.MM)

REVENUES BY QUARTER (S/.MM)

301

2,214

82
71

1,854
1,433

1,366

190

188

182

131

34
22

2Q15

3Q15

4Q15

1Q 16

2Q 16

2Q15

3Q15

4Q15

1Q 16

2Q 16

2Q15

3Q15

4Q15

1Q 16

2Q 16

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2Q 2016 Results Presentation

Backlog + Recurrent Businesses

Backlog amounted to US$ 4,155.1 MM as of 2Q2016 and the recurrent businesses amounted to US$ 492.8 MM, reaching a
total of US$ 4,648.0 MM, equivalent to 2.37x the annual revenues

CONSOLIDATED BACKLOG AND RECURRENT BUSINESSES

(USMM)

5,000

544
4,000

448

3.00

470

493

2.80
2.60

2.37
2.40

502
3,000
1.93

2.07
4,034

4,065

2,000

2.20
4,155

2.00
1.80

4,037

3,162
1,000

1.95

1.60
1.40

1.51

1.20
-

1.00
2Q'15

Backlog

2Q 2016 Results Presentation

3Q'15

Recurrent Businesses

4Q'15

1Q'16

2Q'16

Backlog+Recurrent Businesses/ Revenues Ratio

Backlog + Recurrent Businesses

(2Q2016 2Q2015)
Backlog by End-Market

Backlog by Country

2% 1%
16%
15%

3%7%

12%
21%

Mining Projects
Mining Services

9%

10%

7%
4%

3%
Per

6%

Oil and Gas

28%

2%

15%

Chile

Electricity

Colombia

Water and Sewage

3%

Panam, Bolivia

Real Estate

16%

Transport

20%

10%

73%
80%

Others

37%

Public/Private

Construction/ Non- Construction

15%
21%

32%

11%

Private

4%

Non-Construction

44%

Public
Concessions

75%

56%

Construction

68%

74%

2Q 2016 Results Presentation

Investments

Total CAPEX as of 2Q2016 amounted to US$ 102.5 million (S/. 337.5

million), mainly oriented to:
1.

CAPEX by Business Segment

2Q2016

E&C: US$ 10.0 million corresponds to the purchase and renewal of

machinery and equipment of Stracon GyM.

2.

Infrastructure: US$ 19.0 million mainly for investments in the Norvial

toll road.

3.

Real Estate: US$ 347 thousand

4.

Technical Services: US$ 7.9 million for investments in GMD and CAM

5.

The remaining of investment corresponds to the contributions made to

the Southern Gas Pipeline project.

2Q 2016 Results Presentation

Holding
65%

Real Estate
0.3%

Infrastructure
18%

Engineering &
Construction
Technical Services
10%
7%

Composition of Indebtedness
Debt
(US$ Thousands)

2014

1Q2015

2Q2015

3Q2015

4Q2015

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

Total

586,008

30,113 115,966 116,458

695,729 758,184

832,687

754,599 864,717 826,618

EBITDA - LTM
(US$ Thousands)

2014

1Q2015

E&C + Real Estate + Technical Services

202,813

Infrastructure

103,382

Total

306,195

2Q2015

182,291 169,397
95,020

3Q2015
132,588

96,992

95,521

277,311 266,389

228,110

4Q2015

1Q2016

2Q2016

140,858 141,138 148,303

87,210

91,556

82,567

228,068 232,694 230,870

Ratios
2014

1Q2015

2Q2015

3Q2015

4Q2015

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

2Q 2016 Results Presentation

Indebtedness
Maturity of Gross Debt

Less than

Between 1

Between 2

More than

1 year

and 2 years

and 5 years

5 years

Total

Other loans

897,041

191,703

499,730

1,588,474

Leasing

124,898

76,405

20,230

18,648

240,272

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

Ferrovas & Norvial Bond Issue

Debt by Segment

Holding
14%
Real Estate
8%

Debt by Currency

Engineering &
Construction
33%

Colombian peso
3% Bolivian peso
0.4%
Chilean peso
6%

Dollars
36%
Infrastructure
39%

2Q 2016 Results Presentation

Sol
55%

Technical
Services
6%

Final Remarks
2Q 2016 Results Presentation

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 postacquisition; 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.

Contacts:
Mnica Miloslavich
Chief Financial Officer
(511) 213 6565
mmiloslavich@gym.com.pe
Samantha Ratcliffe Leiva
Deputy Investor Relations Officer
(511) 213 6573
samantha.ratcliffe@gym.com.pe
www.granaymontero.com.pe

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