Report of Foreign Issuer (6-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15b-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of October 2015

Commission File Number 001-35591

GRAÑA Y MONTERO S.A.A.

(Exact name of registrant as specified in its charter)

GRAÑA Y MONTERO GROUP

(Translation of registrant’s name into English)

Republic of Peru

(Jurisdiction of incorporation or organization)

Avenida Paseo de la República 4667, Lima 34,

Surquillo, Lima

Peru

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X____ Form 40-F _______

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No ___X____

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.

/s/ Dennis Gray Febres

Stock Market Representative

Graña y Montero S.A.A.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

GRAÑA Y MONTERO S.A.A.

By: /s/ DENNIS GRAY FEBRES

Name: Dennis Gray Febres

Title: Stock Market Representative

October 29, 2015

(All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AT SEPTEMBER 30, 2014 AND 2015 AND FOR THE NINE-MONTH PERIOD ENDED IN THIS DATE

(All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AT SEPTEMBER 30, 2014 AND 2015 AND FOR THE NINE-MONTH PERIOD ENDED IN THIS DATE

CONTENTS

Condensed Interim Consolidated Statement of Financial Position

Condensed Interim Consolidated Income Statement

Condensed Interim Consolidated Statement of Comprehensive Income

Condensed Interim Consolidated Statement of Shareholders’ Equity

Condensed Interim Consolidated Statement of Cash Flows

Notes to the Condensed Interim Consolidated Financial Statements

S/. = New Peruvian Sol

US$ = United States dollar

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF FINANCIAL POSITION


ASSETS						LIABILITIES AND EQUITY
		At						At
		December 31,		September 30,				December 31,			September 30,
	Note	2014		2015			Note	2014			2015

Current assets						Current liabilities
Cash and cash equivalents			818,402		730,519	Borrowings	12		1,425,455			1,334,900
Financial asset at fair value through profit or loss			7,105		3,033	Bonds	13		-			46,587
Trade accounts receivables			1,108,345		1,206,101	Trade accounts payable			1,178,849			1,216,856
Unbilled work in progress			1,152,790		1,229,629	Accounts payable to related parties	9		83,027			62,445
Accounts receivable from related parties	9		99,061		87,728	Current income tax			89,615			22,715
Other accounts receivable			584,975		729,544	Other accounts payable			1,007,743			1,000,350
Inventories			833,570		1,070,086	Provisions	14		11,441			12,497
Prepaid expenses			26,444		41,851	Total current liabilities			3,796,130			3,696,350
Non-current assets classified as held for sale			9,513		8,073
Total current assets			4,640,205		5,106,564	Non-current liabilities
						Borrowings	12		326,124			542,826
Non-current assets						Long-term bonds	13		-			759,437
Long-term trade accounts receivable			579,956		583,593	Long-term trade accounts payable			3,779			-
Long-term unbilled work in progress			35,971		55,204	Other long-term accounts payable			281,651			202,319
Prepaid expenses			9,478		20,548	Provisions	14		46,904			37,005
Other long-term accounts receivable			44,553		61,576	Derivative financial instruments			2,999			3,016
Available-for-sale financial assets	8		93,144		100,611	Deferred income tax liability			79,155			66,419
Investments in associates and joint ventures	10		229,563		262,638	Total non-current liabilities			740,612			1,611,022
Investment property			36,244		35,187	Total liabilities			4,536,742			5,307,372
Property, plant and equipment	11		1,148,651		1,166,814
Intangible assets	11		762,898		839,176	Equity
Deferred income tax asset			136,001		126,505	Capital	15		660,054			660,054
Total non-current assets			3,076,459		3,251,852	Legal reserve			132,011			132,011
						Optional reserve			-			29,974
						Share Premium			899,311			898,417
						Other reserves			(113,895	)		(161,228	)
						Retained earnings			1,113,697			983,025
						Equity attributable to controlling interest in the Company			2,691,178			2,542,253
						Non-controlling interest			488,744			508,791
						Total equity			3,179,922			3,051,044
Total assets			7,716,664		8,358,416	Total liabilities and equity			7,716,664			8,358,416


The accompanying notes on pages 8 to 25 are an integral part of the consolidated financial statements.

- 2 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES


CONSOLIDATED INCOME STATEMENT


		For the nine-month period
		ended September 30,
	Note	2014			2015


Revenues from construction activities			3,403,546			4,064,096
Revenues from services provided			1,271,878			1,342,132
Revenue from real estate and sale of goods			223,592			211,677
			4,899,016			5,617,905

Cost of construction activities			(3,034,568	)		(3,876,589	)
Cost of services provided			(1,034,911	)		(1,156,472	)
Cost of real estate and goods sold			(144,061	)		(117,164	)
	16		(4,213,540	)		(5,150,225	)
Gross profit			685,476			467,680

Administrative expenses	16		(307,515	)		(296,611	)
Other income and expenses			19,489			10,510
Operating profit			397,450			181,579

Financial expenses			(64,414	)		(124,162	)
Financial income			20,919			34,985
Share of the profit or loss in associates and joint
ventures under the equity method of accounting			33,308			21,236
Profit before income tax			387,263			113,638
Income tax	17		(105,047	)		(75,928	)
Profit for the year			282,216			37,710

Profit attributable to:
Owners of the Company			235,293			6,709
Non-controlling interest			46,923			31,001
			282,216			37,710

Earnings per share from continuing operations
attributable to owners of the Company during
the year			0.356			0.010



The accompanying notes on pages 8 to 25 are an integral part of the consolidated financial statements.

- 3 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


		For the nine-month period
		ended September 30,
	Note	2014			2015


Profit for the year			282,216			37,710
Other comprehensive income:
Items that will not be reclassified to profit or loss
Remeasurement of actuarial gains and losses, net of tax			(1,931	)		(3,617	)

Items that may be subsequently reclassified to profit or loss
Cash flow hedge, net of tax			485			109
Foreign currency translation adjustment, net of tax			(32,812	)		(60,686	)
Change in value of available-for-sale financial assets, net of tax	8		-			5,377
Exchange difference from net investment in a foreign operation, net of tax			-			(11,680	)
			(32,327	)		(66,880	)
Other comprenhensive income for the year, net of tax			(34,258	)		(70,497	)
Total comprehensive income for the year			247,958			(32,787	)

Comprehensive income attributable to:
Owners of the Company			208,628			(43,120	)
Non-controlling interest			39,330			10,333
			247,958			(32,787	)


The accompanying notes on pages 8 to 25 are an integral part of the consolidated financial statements.

- 4 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE PERIOD OF THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2015

	Attributable to the controlling interests of the Company
	Number								Premium			Other
	of shares				Legal		Optional		for issuance			reserves			Retained						Non-controlling
	In thousands		Capital		reserve		reserve		of shares						earnings			Total			interest			Total
	In thousands

Balances as of January 1, 2014		660,054		660,054		111,657		-		1,027,533			18,423			947,766			2,765,433			431,262			3,196,695
Profit for the year		-		-		-		-		-			-			235,293			235,293			46,923			282,216
Cash flow hedge		-		-		-		-		-			461			-			461			24			485
Adjustment for actuarial gains and losses		-		-		-		-		-			-			(1,467	)		(1,467	)		(464	)		(1,931	)
Foreign currency translation adjustment		-		-		-		-		-			(25,659	)		-			(25,659	)		(7,153	)		(32,812	)
Comprehensive income of the year		-		-		-		-		-			(25,198	)		233,826			208,628			39,330			247,958
Transactions with shareholders:
- Transfer to legal reserve		-		-		20,354		-		-			-			(20,354	)		-			-			-
- Dividend distribution		-		-		-		-		-			-			(112,127	)		(112,127	)		(50,705	)		(162,832	)
- Contributions of non-controlling shareholders		-		-		-		-		-			-			-			-			49,979			49,979
- Additional acquisition of non-controlling		-		-		-		-		(51,423	)		-			-			(51,423	)		(15,209	)		(66,632	)
- Returns additional capital from non-controlling interests		-		-		-		-		-			-			-			-			(4,241	)		(4,241	)
Total transactions with shareholders		-		-		20,354		-		(51,423	)		-			(132,481	)		(163,550	)		(20,176	)		(183,726	)
Balances as of September 30, 2014		660,054		660,054		132,011		-		976,110			(6,775	)		1,049,111			2,810,511			450,416			3,260,927

Balances as of January 1, 2015		660,054		660,054		132,011		-		899,311			(113,895	)		1,113,697			2,691,178			488,744			3,179,922
Profit for the year		-		-		-		-		-			-			6,709			6,709			31,001			37,710
Cash flow hedge		-		-		-		-		-			104			-			104			5			109
Adjustment for actuarial gains and losses		-		-		-		-		-			-			(2,496	)		(2,496	)		(1,121	)		(3,617	)
Foreign currency translation adjustment		-		-		-		-		-			(41,314	)		-			(41,314	)		(19,372	)		(60,686	)
Change in value of available-for-sale financial assets		-		-		-		-		-			5,377			-			5,377			-			5,377
Exchange difference from net investment in a foreign operation		-		-		-		-		-			(11,500	)		-			(11,500	)		(180	)		(11,680	)
Comprehensive income of the year		-		-		-		-		-			(47,333	)		4,213			(43,120	)		10,333			(32,787	)
Transactions with shareholders:
- Transfer to Optional reserve		-		-		-		29,974		-			-			(29,974	)		-			-			-
- Dividend distribution		-		-		-		-		-			-			(104,911	)		(104,911	)		(4,316	)		(109,227	)
- Contributions of non-controlling shareholders		-		-		-		-		-			-			-			-			12,556			12,556
- Additional acquisition of non-controlling		-		-		-		-		(894	)		-			-			(894	)		(971	)		(1,865	)
- Sale to non-controlling interest		-		-		-				-			-			-			-			2,445			2,445
Total transactions with shareholders		-		-		-		29,974		(894	)		-			(134,885	)		(105,805	)		9,714			(96,091	)
Balances as of September 30, 2015		660,054		660,054		132,011		29,974		898,417			(161,228	)		983,025			2,542,253			508,791			3,051,044


The accompanying notes on pages 8 to 25 are an integral part of the consolidated financial statements.

- 5 -


(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF CASH FLOWS


			For the nine-month period
			ended September 30,
	Note		2014			2015

OPERATING ACTIVITIES
Profit before income tax				387,263			113,638
Adjustments to profit not affecting cash flows from
operating activities:
Depreciation		11		135,736			158,205
Amortization of other assets		11		60,891			61,457
Impairment of inventories		16		-			1,086
Impairment of accounts receivable		16		-			4,832
Impairment of property, plant and equipment		16		-			14
Reversal of impairment of inventories				-			(630	)
Profit on fair value of financial asset at fair value through profit or loss				-			(1,420	)
Other Provisions		14		8,655			2,701
Interest				-			89,445
Foreign exchange loss on loans				-			15,718
Adjustments to PPA of loans				-			(58	)
Share of the profit and loss in associates
under the equity method of accounting		10		(33,308	)		(21,236	)
Reversal of provisions		14		(7,748	)		(5,613	)
Lower of fixed and intangible assets				-			4,892
Profit on sale of property, plant and equipment				(5,693	)		(4,203	)
Loss on financial asset at fair value through profit or loss				-			420
Foreign exchange gains on investing activities				(23,685	)		-
Foreign exchange gains on operating activities				(11,370	)		-
Net variations in assets and liabilities:
Decrease in trade accounts receivable				(450,356	)		(202,298	)
Increase (decrease) in other accounts receivable				(14,932	)		(161,592	)
Decrease in other accounts receivable from related parties				(21,659	)		11,333
Decrease in inventories				(121,134	)		(236,972	)
Increase (decrease) in pre-paid expenses and other assets				(15,897	)		(28,364	)
Increase in trade accounts payable				82,122			35,036
Increase (decrease) in other accounts payable				12,319			(132,697	)
Increase (decrease) in other accounts payable to related parties				18,826			(16,410	)
Decrease in other provisions				(5,607	)		(1,076	)
Payments related to Norvial Concession				(41,873	)		(103,824	)
Payment of income tax				(185,242	)		(148,159	)
Net cash provided by (applied to) operating activities				(232,692	)		(565,775	)

INVESTING ACTIVITIES
Sale of property, plant and equipment				34,226			14,664
Sale of financial asset at fair value through profit or loss				-			4,604
Dividends received		10		18,822			50,303
Payment for purchase of investments properties				(1,326	)		(600	)
Payments for intangible purchase				(54,085	)		(21,282	)
Payments for purchase and contributions on investment in associate and joint ventures				(54,868	)		(66,391	)
Direct cash outflow from acquisition of subsidiaries				(6,387	)		-
Payments for property, plant and equipment purchase				(188,254	)		(157,536	)
Net cash applied to investing activities				(251,872	)		(176,238	)

FINANCING ACTIVITIES
Loans received				1,522,923			4,046,979
Amortization of loans received				(900,377	)		(3,196,162	)
Payment for transaction costs by issuing bonds				-			(18,518	)
Interest payment				(27,205	)		(77,907	)
Dividends paid to owners of the parent				(112,127	)		(104,911	)
Dividends paid to non-controlling interest				(50,706	)		(4,316	)
Cash received from non-controlling shareholders				43,454			8,384
Acquisition or sale of interest in a subsidiary of non-controlling shareholders				(66,632	)		581
Net cash (applied to) provided by financing activities				409,330			654,130
Net increase (net decrease) in cash				(75,234	)		(87,883	)
Cash decrease in deconsolidation				1,915			-
Exchange gains on cash and cash equivalents				11,370			-
Cash and cash equivalents at the beginning of the year				959,415			818,402
Cash and cash equivalents at the end of the year				897,466			730,519

NON-CASH TRANSACTIONS:
Acquisition of assets through finance leases				141,836			79,819

The accompanying notes on pages 8 to 25 are an integral part of the consolidated financial statements.

- 6 -

(All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AT SEPTEMBER 30, 2014 AND 2015 (UNAUDITED), AND AT DECEMBER 31, 2014 (AUDITED)

1	GENERAL INFORMATION

The Company is the parent company of the Graña y Montero Group (hereinafter the Group) and its principal activity is the holding of 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 Group companies; it is also engaged in the leasing of offices to Group companies and third parties.

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 operation), real estate businesses and technology services.

These condensed interim consolidated financial statements as of September 30, 2015 have been prepared and authorized for issuance by the Chief Financial Officer on October 29, 2015.

2	BASIS OF PREPARATION

These condensed interim consolidated financial statements for the period ended September 30, 2015 have been prepared in accordance with (IAS 34) “Interim financial reporting”. The condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2014, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

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, 2014.

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.

The condensed interim consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements; these should be read in conjunction with the Group’s annual financial statements as of December 31, 2014. There have been no changes since year-end in the risk management department of the Group or in any risk management policies.

4.1.1 Market risk –

Compared to year end, no new material market risk hedging arrangements have occurred.

- 7 -

(All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

4.1.2 Credit risk –

Compared to year end, the Group has no exposure to any new relevant credit risk.

4.1.3 Liquidity risk -

Compared with the previous year, there was significant variation in the cash flow of undiscounted contractual due to the issuance of bonds by the subsidiries GyM Ferrovías and Norvial.

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:

	Less than 1		From 1 to		From 2 to		Over
	year		2 years		5 years		5 years		Total

At December 31, 2014
Other financial liabilities (except
finance leases)		1,318,817		72,696		56,206		-		1,447,719
Finance leases		138,988		92,242		122,378		11,224		364,832
Trade payables		1,178,849		3,779		-		-		1,182,628
Payables to related parties		83,027		-		-		-		83,027
Other payables		337,692		32,449		-		-		370,141
Other non-financial liabilities		-		2,999		-		-		2,999
		3,057,373		204,165		178,584		11,224		3,451,346

At September 30, 2015
Other financial liabilities (except
finance leases)		1,218,362		322,607		53,017		-		1,593,986
Finance leases		152,274		123,684		56,512		14,988		347,458
Bonds payable		91,759		182,359		380,910		1,118,432		1,773,460
Trade payables		1,216,856				-		-		1,216,856
Payables to related parties		62,445		-		-		-		62,445
Other payables		409,335		52,377		28,201		3,052		492,965
Other non-financial liabilities		-		3,016		-		-		3,016
		3,151,031		684,043		518,640		1,136,472		5,490,186

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, 2014 and September 30, 2015, due to the fact that the Company has acquired significant borrowings, the Company’s strategy was to maintain a gearing ratio between 0.03 and 1.00.

	December 31,			September 30,
	2014			2015

Total borrowing and bonds		1,751,579			2,683,750
Less: Cash and cash equivalents		(818,402	)		(730,519	)
Net debt		933,177			1,953,231
Total equity		3,179,922			3,051,044
Total capital		4,113,099			5,004,275

Gearing ratio		0.23			0.39

- 8 -

(All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

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.

-	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 investment held in Transportadora de Gas del Perú S.A. (TGP) classified as available-for-sale financial asset was based on unobservable inputs in the market; the Group calculated its fair value based on its discounted cash flows as of the financial statement date. The information used to determine the fair value of this investment corresponds to Level 3 (Note 8).

Financial assets classified as at fair value through profit or loss corresponds to investments in mutual funds and bonds. Their fair value has been determined with observable information of Level 2.

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 12-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, 2014.

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.

- 9 -

(All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

7	SEGMENT REPORTING

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.

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.

- 10 -

(All the amounts are expressed in thousand of S/. unless otherwise stated)
UNAUDITED

Operating segments financial position

Segment reporting
															Parent
	Engineering		Infrastructure										Technical		Company
	and construction		Energy		Toll roads		Mass transit		Water treatment		Real estate		services		Operations		Eliminations			Consolidated
As of December 31, 2014
Assets.-
Cash and cash equivalents		285,367		54,085		53,312		51,522		8,407		54,268		134,678		176,763		-			818,402
Financial asset at fair value through profit or loss		7,105		-		-		-		-		-		-		-		-			7,105
Trade accounts receivables		604,951		35,201		46,598		71,817		-		57,584		292,160		34		-			1,108,345
Unbilled work in progress		1,136,404		1,414		-		-		14,972		-		-		-		-			1,152,790
Accounts receivable from related parties		121,989		6,723		-		216		-		6,561		65,242		371,765		(473,435	)		99,061
Other accounts receivable		389,805		10,781		9,042		29,515		3,154		11,409		63,797		66,414		1,058			584,975
Inventories		126,293		7,921		-		13,909		-		630,758		55,601		486		(1,398	)		833,570
Prepaid expenses		11,489		891		822		6,056		407		235		5,120		1,424		-			26,444
Non-current assets classified as held for sale		9,513		-		-		-		-		-		-		-		-			9,513
Total current assets		2,692,916		117,016		109,774		173,035		26,940		760,815		616,598		616,886		(473,775	)		4,640,205

Long-term trade accounts receivable		-		-		-		579,956		-		-		-		-		-			579,956
Long-term unbilled work in progress		-		25,387		10,584		-		-		-		-		-		-			35,971
Long-term trade accounts receivable from related parties		-		-		408		-		-		-		433		182,548		(183,389	)		-
Prepaid expenses		-		-		2,416		7,062		-		-		-		-		-			9,478
Other long-term accounts receivable		6,192		4,449		11,776		4,131		1,587		9,705		4,496		2,217		-			44,553
Available-for-sale financial assets		-		1,058		-		-		-		-		2		93,144		(1,060	)		93,144
Investments in associates and joint ventures		161,938		7,316		-		-		-		62,863		10,059		1,729,640		(1,742,253	)		229,563
Investment property		-		-		-		-		-		36,244		-		-		-			36,244
Property, plant and equipment		652,797		193,183		2,036		14,270		-		7,344		166,323		119,483		(6,785	)		1,148,651
Intangible assets		307,387		146,477		234,923		6,247		1,100		1,187		33,508		17,417		14,652			762,898
Deferred income tax asset		91,361		714		4,604		244		-		9		37,557		926		586			136,001
Total non-current assets		1,219,675		378,584		266,747		611,910		2,687		117,352		252,378		2,145,375		(1,918,249	)		3,076,459
Total assets		3,912,591		495,600		376,521		784,945		29,627		878,167		868,976		2,762,261		(2,392,024	)		7,716,664

Liabilities.-
Borrowings		629,584		69,577		95,902		404,915		-		144,314		80,531		632		-			1,425,455
Trade accounts payable		940,042		27,148		3,250		12,385		159		31,690		155,714		8,461		-			1,178,849
Accounts payable to related parties		89,445		1,061		55,679		278,819		24,552		24,106		82,203		12,421		(485,259	)		83,027
Current income tax		71,288		5,493		249		32		138		1,150		11,259		6		-			89,615
Other accounts payable		771,127		18,518		26,076		2,308		-		65,316		101,973		22,425		-			1,007,743
Provisions		-		8,414		-		-		-		-		3,027		-		-			11,441
Total current liabilities		2,501,486		130,211		181,156		698,459		24,849		266,576		434,707		43,945		(485,259	)		3,796,130

Borrowings		144,081		99,767		633		-		-		16,368		63,070		2,205		-			326,124
Long-term trade accounts payable		-		-		1,622		2,157		-		-		-		-		-			3,779
Accounts payables to related parties		-		-		-		-		-		109,126		62,522		-		(171,648	)		-
Other long-term accounts payable		201,227		349		495		4,820		-		4,679		69,201		880		-			281,651
Provisions		26,878		5,774		-		-		-		-		14,252		-		-			46,904
Derivative financial instruments		-		2,999		-		-		-		-		-		-		-			2,999
Deferred income tax liability		51,556		1,331		-		-		325		8,707		7,021		10,215		-			79,155
Total non-current liabilities		423,742		110,220		2,750		6,977		325		138,880		216,066		13,300		(171,648	)		740,612
Total liabilities		2,925,228		240,431		183,906		705,436		25,174		405,456		650,773		57,245		(656,907	)		4,536,742
Equity attributable to controlling interest in the Company		817,356		236,925		150,788		59,633		4,453		157,276		128,429		2,695,401		(1,559,083	)		2,691,178
Non-controlling interest		170,007		18,244		41,827		19,876		-		315,435		89,774		9,615		(176,034	)		488,744
Total liabilities and equity		3,912,591		495,600		376,521		784,945		29,627		878,167		868,976		2,762,261		(2,392,024	)		7,716,664

- 11 -

(All the amounts are expressed in thousand of S/. unless otherwise stated)
UNAUDITED

Operating segments financial position

Segment reporting
															Parent
	Engineering		Infrastructure										Technical		Company
	and construction		Energy		Toll roads		Mass transit		Water treatment		Real estate		services		Operations		Eliminations			Consolidated
As of September 30, 2015
Assets.-
Cash and cash equivalents		108,804		57,128		101,632		126,539		7,483		87,873		35,128		205,932		-			730,519
Financial asset at fair value through profit or loss		3,033		-		-		-		-		-		-		-		-			3,033
Trade accounts receivables		732,063		61,617		17,787		61,744		-		56,262		276,628		-		-			1,206,101
Unbilled work in progress		1,205,632		211		-		-		23,786		-		-		-		-			1,229,629
Accounts receivable from related parties		153,934		1,267		63		281		-		4,163		58,236		198,899		(329,115	)		87,728
Other accounts receivable		506,741		24,184		4,926		22,714		4,347		12,017		75,089		79,523		3			729,544
Inventories		111,093		10,305		-		15,943		-		875,427		63,055		389		(6,126	)		1,070,086
Prepaid expenses		12,070		3,246		1,168		10,332		431		186		11,340		3,078		-			41,851
Non-current assets classified as held for sale		8,073		-		-		-		-		-		-		-		-			8,073
Total current assets )		2,841,443		157,958		125,576		237,553		36,047		1,035,928		519,476		487,821		(335,238	)		5,106,564

Long-term trade accounts receivable		-		-		-		583,593		-		-		-		-		-			583,593
Long-term unbilled work in progress		-		38,731		16,473		-		-		-		-		-		-			55,204
Long-term trade accounts receivable from related parties		-		-		408		-		-		-		472		221,419		(222,299	)		-
Prepaid expenses		-		-		9,963		10,585		-		-		-		-		-			20,548
Other long-term accounts receivable		6,263		8,887		27,653		5,080		1,589		8,520		1,792		1,792		-			61,576
Available-for-sale financial assets		-		-		-		-		-		-		2		100,611		(2	)		100,611
Investments in associates and joint ventures		144,247		8,007		-		-		-		62,850		8,499		1,654,185		(1,615,150	)		262,638
Investment property		-		-		-		-		-		35,187		-		-		-			35,187
Property, plant and equipment		633,057		210,311		1,725		18,466		-		12,930		168,090		129,409		(7,174	)		1,166,814
Intangible assets		284,709		139,445		335,301		6,101		1,061		1,150		33,841		23,705		13,863			839,176
Deferred income tax asset		79,407		359		4,590		-		-		199		39,987		1,259		704			126,505
Total non-current assets		1,147,683		405,740		396,113		623,825		2,650		120,836		252,683		2,132,380		(1,830,058	)		3,251,852
Total assets		3,989,126		563,698		521,689		861,378		38,697		1,156,764		772,159		2,620,201		(2,165,296	)		8,358,416

Liabilities.-
Borrowings		914,236		89,069		8,587		-		-		214,651		108,357		-		-			1,334,900
Bonds		-		-		13,839		32,748		-		-		-		-		-			46,587
Trade accounts payable		996,959		34,873		3,090		23,921		134		14,086		130,633		13,160		-			1,216,856
Accounts payable to related parties		62,254		1,986		62,133		120,534		9,482		45,785		79,902		9,906		(329,537	)		62,445
Current income tax		14,387		736		1,360		-		139		35		6,050		8		-			22,715
Other accounts payable		589,664		13,793		3,240		1,364		65		260,629		117,993		13,602		-			1,000,350
Provisions		139		8,631		-		-		-		-		3,727		-		-			12,497
Total current liabilities		2,577,639		149,088		92,249		178,567		9,820		535,186		446,662		36,676		(329,537	)		3,696,350

Borrowings		365,046		84,760		2,702		-		-		19,901		70,417		-		-			542,826
Long-term bonds		-		-		183,346		576,091		-		-		-		-		-			759,437
Long-term trade accounts payable		-		-		-		-		-		-		-		-		-			-
Accounts payables to related parties		-		43,156		-		-		24,035		118,766		35,903		-		(221,860	)		-
Other long-term accounts payable		139,818		-		495		7,368		-		5,339		48,589		710		-			202,319
Provisions		23,813		5,739		-		-		-		-		7,453		-		-			37,005
Derivative financial instruments		-		3,016		-		-		-		-		-		-		-			3,016
Deferred income tax liability		26,422		3,491		85		5,888		286		8,525		5,488		16,234		-			66,419
Total non-current liabilities		555,099		140,162		186,628		589,347		24,321		152,531		167,850		16,944		(221,860	)		1,611,022
Total liabilities		3,132,738		289,250		278,877		767,914		34,141		687,717		614,512		53,620		(551,397	)		5,307,372
Equity attributable to controlling interest in the Company		691,146		254,035		191,191		70,099		4,556		150,600		130,401		2,552,932		(1,502,707	)		2,542,253
Non-controlling interest		165,242		20,413		51,621		23,365		-		318,447		27,246		13,649		(111,192	)		508,791
Total liabilities and equity		3,989,126		563,698		521,689		861,378		38,697		1,156,764		772,159		2,620,201		(2,165,296	)		8,358,416

- 12 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED

Operating segment performance

Segment Reporting
																						Parent
	Engineering			Infrastructure															Technical			Company
	and construction			Energy			Toll roads			Mass transit			Water treatment			Real estate			services			operations			Eliminations			Consolidated
For the nine-month period
ended September 30, 2014

Revenue		3,552,475			255,007			206,868			115,806			24,156			138,323			841,286			39,971			(274,876	)		4,899,016
Gross profit		401,210			96,258			52,108			27,387			1,916			37,548			96,682			(6,696	)		(20,937	)		685,476
Administrative expenses		(192,597	)		(11,624	)		(6,605	)		(7,955	)		(260	)		(15,154	)		(92,909	)		(23,121	)		42,710			(307,515	)
Other income and expenses		521			(2,539	)		94			23			-			(434	)		8,032			14,615			(823	)		19,489
Profit before interests
and taxes		209,134			82,095			45,597			19,455			1,656			21,960			11,805			(15,202	)		20,950			397,450
Financial expenses		(40,531	)		(6,850	)		(9,705	)		(3,845	)		(43	)		(7,753	)		(19,171	)		(1,332	)		24,816			(64,414	)
Financial income		15,795			58			1,195			589			12			93			1,250			44,455			(42,528	)		20,919
Share of the profit or loss
in associates and joint ventures under the equity
method of accounting		32,639			(100	)		-			-			-			4,811			873			212,493			(217,408	)		33,308
Profit before income tax		217,037			75,203			37,087			16,199			1,625			19,111			(5,243	)		240,414			(214,170	)		387,263
Income tax		(45,340	)		(23,717	)		(10,416	)		(6,803	)		(490	)		(5,669	)		(2,883	)		(10,009	)		280			(105,047	)
Net profit for the period		171,697			51,486			26,671			9,396			1,135			13,442			(8,126	)		230,405			(213,890	)		282,216

Profit attributable to:

Owners of the Company		138,762			48,555			19,907			7,047			1,135			4,938			(5,796	)		230,580			(209,835	)		235,293
Non-controlling interest		32,935			2,931			6,764			2,349			-			8,504			(2,330	)		(175	)		(4,055	)		46,923
Net profit for the period		171,697			51,486			26,671			9,396			1,135			13,442			(8,126	)		230,405			(213,890	)		282,216

- 13 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED

Operating segment performance

Segment Reporting
																						Parent
	Engineering			Infrastructure															Technical			Company
	and construction			Energy			Toll roads			Mass transit			Water treatment			Real estate			services			operations			Eliminations			Consolidated
For the nine-month period
ended September 30, 2015

Revenue		4,241,095			289,044			301,579			151,983			21,470			75,121			844,588			53,203			(360,178	)		5,617,905
Gross profit		239,495			52,979			56,803			30,460			1,720			26,621			117,504			(5,037	)		(52,865	)		467,680
Administrative expenses		(208,831	)		(13,562	)		(7,183	)		(8,003	)		(252	)		(15,024	)		(78,984	)		(22,375	)		57,603			(296,611	)
Other income and expenses		(1,039	)		306			-			-			-			1,038			7,391			3,835			(1,021	)		10,510
Profit before interests
and taxes		29,625			39,723			49,620			22,457			1,468			12,635			45,911			(23,577	)		3,717			181,579
Financial expenses		(88,656	)		(13,935	)		(3,564	)		(3,716	)		(33	)		(8,413	)		(24,754	)		(1,877	)		20,786			(124,162	)
Financial income		8,343			116			5,351			1,347			109			433			1,261			47,684			(29,659	)		34,985
Share of the profit or loss
in associates and joint ventures under the equity
method of accounting		10,304			686			-			-			-			9,826			(17	)		(12,144	)		12,581			21,236
Profit before income tax		(40,384	)		26,590			51,407			20,088			1,544			14,481			22,401			10,086			7,425			113,638
Income tax		(29,124	)		(7,777	)		(13,400	)		(6,132	)		(407	)		(3,986	)		(10,361	)		(5,889	)		1,148			(75,928	)
Net profit for the period		(69,508	)		18,813			38,007			13,956			1,137			10,495			12,040			4,197			8,573			37,710

Profit attributable to:

Owners of the Company		(79,765	)		16,594			28,214			10,467			1,137			4,372			11,714			4,425			9,551			6,709
Non-controlling interest		10,257			2,219			9,793			3,489			-			6,123			326			(228	)		(978	)		31,001
Net profit for the period		(69,508	)		18,813			38,007			13,956			1,137			10,495			12,040			4,197			8,573			37,710

- 14 -

(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	AVAILABLE-FOR-SALE FINANCIAL ASSETS

This account comprises the investment held by the Company, directly and indirectly, in Transportadora de Gas del Perú S.A. (TGP), a Peruvian entity engaged in providing gas
transportation services.

In December 2013, the Group acquired from one of the TGP’s shareholders, Pluspetrol Resources Corporation (hereinafter Pluspetrol), an additional 1.04% interest in TGP paying a consideration of US$20 million (equivalent to S/.56.1 million) obtaining a total interest of 1.64% at December 31, 2013. At December 31, 2013, the fair value of the Group´s interest in TGP equals S/.88.3 million, based on the price paid in one recent arm's length transaction which occurred in December 2013 among knowledgeable willing parties. The fluctuation in the fair value of this investment in 2013 amounts to S/.19.1 million, net of its income tax effect amounting to for S/.8.2 million. The net amount has been recognized in the statement of other comprehensive income.

Together with the acquisition of the 1.04% interest, the Company acquired from Pluspetrol on behalf of the Canada Pension Plan Investment Board (CPPIB) an additional indirect interest of 11.34% in TGP. The investment for US$217 million was funded entirely by CPPIB. The risk and rewards of the entire investment are assumed by CPPIB.

Given the features of the transaction, it has been treated as an off-balance-sheet transaction because, in substance, the Company is acting as an agent to CPPIB. Therefore, the Company did not recognized either the investment in TGP nor any obligation to CPPIB.

This acquisition is part of an investment agreement entered into with CPPIB, whereby both parties commit themselves to initiate and develop projects in the oil and gas industry.

On December 27, 2013 the Company announced its intention to transfer the previously acquired interest of 11.34% in TGP to CPPIB (10.43%) and to Corporación Financiera de Inversiones – CFI (0.91%), if none of the existing TGP shareholders exercise their first option of share acquisition rights.

On February 27, 2014, the Company transferred the shares to the above indicated entities, retaining in TGP an interest equivalent to 1.64%, for this transaction the Group obtained a commission fee of S/.7.5 million which is included in ‘other income and expenses’.

At December 31, 2014, the fair value of the Group´s interest in TGP equals S/.93.14 million based on the discounted cash flow method. The information used in the calculation is as follows:

-	Discounted cash flows from operating activities of TGP net of cash flows from investment activities (CAPEX).
-	Cash flows were estimated for a 30 year term.
-	The discount rate used is 8% corresponding to the Company’s WACC.
-	The interest of the Company in TGP is 1.64% as of December 31, 2014

The fluctuation in the fair value of this investment in 2014 amounts to S/.3.56 million, net of its income tax effect amounting to S/.1.25 million, plus the adjustment for changes in rate of income tax amounting to S/.1.09 million, which has been recognized in the statement of other comprehensive income.

At September 30, 2015, no major changes, except for adjustment of exchange difference for S/.5.4 million, net of the effect on income tax up to S/.2 million, which has been recognized in the statement of other comprehensive income.

- 15 -

(All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

9	TRANSACTIONS 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,
	2014		2015

Revenue from sale of goods and services:
- Associates		8,272		1,032
- Joint operations		31,701		37,243
		39,973		38,275

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

- 16 -

(All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

	At December 31,				At September 30,
	2014				2015
	Receivable		Payable		Receivable		Payable

Consorcio GyM Conciviles		48,581		-		53,823		-
Consorcio Peruano de Conservación		15,365		-		5,729		-
Consorcio Tren Electrico		7,380		-		-		-
Consorcio Terminales		6,837		-		-		-
Consorcio Rio Urubamba		5,107		3,796		10,386		2,676
Consorcio Sistemas SEC		4,349		-		-		-
Consorcio La Gloria		3,805		3,423		3,053		3,008
Consorcio Constructor Alto Cayma		1,424		-		387		-
Consorcio JV Panamá		1,043		-		1,150		-
Consorcio Lima		877		-		-		-
Consorcio Norte Pachacutec		531		1,068		986		963
Consorcio Huacho Pativilca		369		4,555		-		-
Consorcio Rio Pallca		187		282		109		666
Consorcio Constructor Chavimochic		141		2,896		1,401		4,869
Consorcio Alto Cayma		121		700		-		-
Consorcio Construcciones y Montajes		115		1,198		-		3,048
Consorcio Vial Quinua		116		-		919		1,170
Bechtel Vial y Vives Servicios Complementarios Ltda.		96		4,648		-		4,952
Ingenieria y Construccion Becthek Vial y Vives OGP1 Ltda.		-		-		2,829		-
Consorcio Atocongo		-		915		-		-
Consorcio Ingenieria y Construcción Bechtel		-		5,140		-		-
Consorcio Rio Mantaro		-		-		-		7,835
Consorcio EIM ISA		-		2,955		-		2,767
Ingeniería y Construcción Sigdo Koppers-Vial		-		35,302		-		2,996
Consorcio Lima Actividades Comerciales		-		-		1,343		-
Consorcio Huacho-Pativilca		-		-		-		8,723
Terminales del Perú		-		-		1,346		-
Constructora INCOLUR-DSD Limitada		-		-		1,207		-
Other minor		2,617		2,056		2,491		716
		99,061		68,934		87,159		44,389
Other related parties:
Ferrovias Argentina		-		14,093		-		17,909
Besco		-		-		569		147
		-		14,093		569		18,056
		99,061		83,027		87,728		62,445

Accounts receivable and payable are of current maturity and 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.

- 17 -

All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

10	INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

As of September 30, 2015, associates in which the Group has significant influence are substantially the same as those existing as of December 31, 2014.

The movement of our investments in associates for the period ended September 30, 2014 and September 30, 2015 is as follows:

	2014			2015

Beginning balance		87,967			229,563
Acquisition and/or contributions received		54,868			66,391
Share of the profit and loss in associates
under the equity method of accounting		33,308			21,236
Dividends received		(18,822	)		(50,303	)
Other		(5,232	)		(4,249	)
Ending balance		152,089			262,638

For the operation of the concession the Company, Constructora Norberto Odebrecht S.A. and Odebrecht Partipacoes e Investimentos S.A. have formed Concesionaria Chavimochic S.A.C. in which the Company has 26.5% interest. As of March 14, 2014 the Company has issued S/.13.3 million equity.

Additionally in 2014, the Company acquired Panorama Plaza de Negocios with a contribution of S/.28 million, it corresponds to a participation as 35%. The main active is a land located in the district of Santiago de Surco, which is developing the real estate project consisting of a commercial area and two office towers of 17 floors.

In August 2015, the Company and Sistemas y Redes Limitada shareholders signed the Pact Adexus SA, and on that date the issue of 23,571 new shares by Adexus and payments made by the Company in full thereof new shares. With this, the Company has 44% interest with a contribution of S/.44.1 million.

Also in August 2015, as part of a private placement, the Company through its indirect subsidiary Stracon GyM SA has signed the 19.94% of shares of Red Eagle Mining Corporation for an amount of US$7 million (equivalent to S/.22.3 million). Additionally, held a mining services contract for US$155 million to develop and operate for eight years the San Ramon mine (Colombia) owned by the company Red Eagle Mining Corporation.

11	PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

For the period ended September 30,2014 and 2015, the movement in property, plant and equipment and intangible assets accounts was as follows:

- 18 -

All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

	Property, plant and equipment			Intangible assets
At January 1, 2014		952,906			480,885

Additions		330,089			95,960
Acquisition of subsidiary - net		711			7,790
Transfers, disposals and adjustments		(48,616	)		20,782
Deductions for sale of assets		(28,487	)		(46	)
Depreciation, amortization		(134,126	)		(60,891	)
Net cost at September 30, 2014		1,072,477			544,480

At January 1, 2015	1,148,651		762,898

Additions	238,650		129,910
Transfers, disposals and adjustments	(54,213	)	7,825
Deductions for sale of assets	(9,725	)	-
Depreciation, amortization	(156,549	)	(61,457	)
Net cost at September 30, 2015	1,166,814		839,176

As of September 30, 2014 and 2015, additions to property, plant and equipment comprise of acquisition of plant and equipment intended for the Group’s operations.

As of September 30, 2014, the amounts registered in Property, plant and equipment and intangible assets were obtained through the acquisition of Coasin Instalaciones Limitada (Note 20.a), direct control acquired by CAM Chile S.A.

As of September 30, 2015, the amounts registered in Intangible assets comprise of investements in building the second Ancón-Huacho-Pativilca road section of the Panamericana Norte highway (concession under intangible model ).

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		At September
	31, 2014		30, 2015

Construction - Engineering		119,616		117,557
Construction - Mining services		13,366		13,366
Construction - Electromechanical		20,737		20,737
IT services		4,172		4,172
Telecommunications Services		6,413		6,413
		164,304		162,245

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 30, 2015 same criteria were applied as those in test impairment at December 31, 2014.

- 19 -

All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

12	BORROWINGS

This item comprises:

	Total				Current				Non-current
	At		At		At		At		At		At
	December		September		December		September		December		September
	31, 2014		30, 2015		31, 2014		30, 2015		31, 2014		30, 2015

Bank loans		1,419,428		1,558,966		1,300,636		1,194,901		118,792		364,065
Leases		332,151		318,760		124,819		139,999		207,332		178,761
		1,751,579		1,877,726		1,425,455		1,334,900		326,124		542,826

Bank loans -

As of September 30, 2015 and December 31, 2014, this item comprises bank loans in local and foreign currencies for working capital purposes. These obligations bear interest at fixed rates which fluctuated between 1.0% and 9.0% in 2014 and between 1.0% and 9.5% in 2015.

On January 15, 2014 the subsidiary Norvial S.A. signed a short term bridge loan with Banco de Crédito del Perú – BCP for an amount of up to S/. 120 million and US$12 million. On such date, under the aforementioned facility S/.50 million were disbursed at an interest rate of 6.32%, and during 2014 an accumulated of S/.85 million have been disbursed. This loan will be canceled with a bond issuance to placed in the local capital markets that finance the construction of the second stage of the "Ancon - Huacho Pativilca" road.

In June 2014, the subsidiary GyM Ferrovías S.A. signed a short term loan with BBVA Continental of S/.200 million at an interest rate of 5.75%, due on December 2014. In December 2014, the short term loan with BBVA Continental was refinanced through a short term loan provided by BCP, due in February 2015. In August 2014, another short term loan with Banco de Crédito del Perú-BCP of S/.200 million at an interest rate of 5.90%, due on January 2015. These loans were canceled with an international bond issuance under the Regulation S, placed in February 2015.

As of September 30, 2015, the Company maintained unused credit limits for S/. 4,354 million, which expire within one year (S/.2,459 million as of December 31, 2014).

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, 2014		30, 2015		31, 2014		30, 2015

Other loans		1,751,579		1,877,726		1,705,843		1,823,258

The fair value is based on cash flows discounted using a rate based on the borrowing rate of 3.0% and 8.7% (4.4% and 8.0% in 2014). It should be noted that the interest rate used are those applicable and negotiated by each Company.

BONDS

On February 10th, 2015, the subsidiary GyM Ferrovías completed an international corporate bonds issuance under the Regulation S. The bonds were issued in Soles VAC (adjusted by the “Valor de Actualización Constante”) for an amount of S/. 629 million. The bonds are due on November 25th, 2039 (a tenor of 24.8 years), and interest rate of 4.75% (plus the VAC adjustment), a local rating of AA+ provided by Apoyo & Asociados Internacionales Clasificadora de Riesgo, and are secured by Mortgage on the Concession, Lien on GyM Ferrovías shares, Assignment of Collection Rights on the Administration Trust, a Cash Flow Trust and Reserve Accounts for Debt Service, Operation and Maintenance and Ongoing Capex. The bonds were assigned to Insurance Companies, Peruvian Pension Funds and Government Funds. The proceeds from the issuance were used to amortize a short term loan provided by Banco de Crédito del Perú-BCP for S/.400 million, funding of the reserve accounts, payment of the issuance expenses, and finally the partial repayment of a subordinated loan provided by Graña y Montero S.A.A. to GyM Ferrovías.

- 20 -

All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

The July 23, 2015, Norvial SA issued the First Corporate Bond Program on the Lima Stock Exchange, the total amount of S/.365 million. The first issue was for S/.80 million for a term of 5 years at a nominal interest rate of 6.75%. The second issue was for S/. 285 million for a term of 11.5 years with a nominal interest rate of 8.375%; was structured in 3 disbursement, on July 23 the first disbursement was received for S/.105 million, and the next two are due in January and July 2016 by S/.100 million and S/.80 million, respectively. Risk rating agencies Equilibrium and Apoyo & Asociados International awarded the AA rating to the debt instrument. This financing is secured by: (i) The Trust flows, except flows corresponding to the remuneration and fee regulation; (ii) the mortgage on the Concession; (iii) Secured Transactions Shares; (iv) transfer of rights; and (v) In general, any additional guarantees granted in favor of Secured Creditors. The purpose of the award funds is to finance the construction of the second stage of the Road Network No. 5 and the financing of VAT linked to the implementation of the project expenses.

14	PROVISIONS

This item is broken down based on the expectation of liquidation as follows:

	At December 31, 2014		At September 30, 2015
Current portion		11,441		12,497
Non-current portion		46,904		37,005
		58,345		49,502

The movement of this item for the period ended September 30, 2014 and 2015 is as follows:

				Contingent			Provisions for the			Provision			Provision
	Legal			liabilities from			for the acquisition			for well			for periodic
	claims			acquisitions			of CAM			closure			maintenance			Total

At January 1, 2014		12,217			9,852			21,546			4,852			3,846			52,313
Additions		5,819			-			-			1,759			2,487			10,065
Additions from business combinations		-			2,658			-			-			-			2,658
Reversals		(588	)		(4,119	)		(7,160	)		-						(11,867	)
Payments		(346	)		-			-			(338	)		(6,333	)		(7,017	)
At September 30, 2014		17,102			8,391			14,386			6,273			-			46,152

At January 1, 2015		13,056			25,927			12,152			7,210			-			58,345
Additions		2,110			-			-			591			-			2,701
Translation adjustment		(46	)		(5,723	)		914			-			-			(4,855	)
Reversals		-			-			(5,613	)		-			-			(5,613	)
Payments		(1,072	)		-			-			(4	)		-			(1,076	)
At September 30, 2015		14,048			20,204			7,453			7,797			-			49,502

Reversals for the period ended September 30, 2015 mainly consists of write-offs of provisions recognized in conjunction with the purchase price allocation related to acquisition of CAM Chile in S/.5.6 million. (S/.7.1 million as of September 30, 2014).

- 21 -

All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

CAPITAL

As of December 31, 2014 and September 30, 2015, the authorized, subscribed and paid-in capital, according to the Company’s bylaws as amended, is represented by 660,053,790 common shares at S/.1.00 par value each.

As of December 31, 2014, the amount of 253,635,480 common shares is represented by 50,727,096 ADSs, at 5 shares per ADS.

As of September 30, 2015, the amount of 252,591,925 common shares is represented by 50,518,385 ADSs, at 5 shares per ADS.

16	EXPENSES BY NATURE

For the period ended September 30, 2014 and 2015, this item comprises:

	Cost of services and goods			Administrative expenses
2014
Purchase of goods		703,999			-
Personnel charges		1,244,725			161,117
Services provided by third-parties		1,444,041			87,256
Taxes		8,629			1,229
Other management charges		614,070			40,920
Depreciation		124,702			11,034
Amortization		54,932			5,959
Variation of inventories		18,442			-
		4,213,540			307,515

2015
Purchase of goods		876,340			-
Personnel charges		1,664,353			158,721
Services provided by third-parties		2,237,150			102,203
Taxes		15,960			825
Other management charges		386,138			16,697
Depreciation		145,846			12,360
Amortization		55,652			5,805
Impairment		5,302			-
Variation of inventories		(236,516	)		-
		5,150,225			296,611

17	INCOME TAX

These condensed interim consolidated financial statements for the period ended September 30, 2015, income tax expense is recognised based on management’s estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used for the year to 31 december 2015 is 66.82% (27.13% for the nine-month period ended September 30, 2014). The variation of the effective rate as compared to the previous year is due to the effect of the permanent differences in the income tax calculation.

18	CONTINGENCIES, COMMITTMENTS AND GUARANTEES

As of September 30, 2015, contingencies held by the Group are substantially the same as those existing as of December 31, 2014.

- 22 -

All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

In addition the Group had guarantee commitments with different financial institutions securing transactions in the amount of US$ 31.4 million and S/. 98.5 million.

DIVIDENDS

For the nine months ended September 30, 2015 , the Group has paid dividends to its non-controlling subsidiaries participate by S/.4.3 million ( S/.51 million for the same period in 2014).

Dividends from the year ended December 31, 2014, of S/.0.159 per share totaling S/. 104,910,523 were approved at the General Shareholders’ meeting held on March 27, 2015, and was paid on April 2015.

20	BUSINESS COMBINATIONS

a) Acquisition of Coasin Instalaciones Limitada.

In March 2014, through the subsidiarie CAM Chile S.A., the Group acquired control of Coasin Instalaciones Limitada with the purchase of 100.00% of its equity shares. Coasin is an entity domiciled in Chile, whose main economic activity is the provision of maintenance and installation services and telecommunications equipment.

This acquisition is part of the Group’s plan to increase its presence in markets that present high growth potential as in Chile, and in attractive industries, such as public services.

During the period of twelve months after the acquisition date the Group reassessed the purchase price allocation from the acquisition of Coasin Instalaciones Limitada which was made in March 2014 and reallocated the amount of S/.0.67 million from goodwill (net of tax impact of S/.0.19 million to trade accounts receivable in the amounts of S/.0.86 million. This effect corresponds to the measurement period adjustment of the preliminary fair value assigned to the assets and liabilities acquired.

The Price paid by CAM Chile S.A. for the acquisition of Coasin amounted to US$2.1 million (equivalent to S/.6.4 million) and resulted in the recognition of goodwill for S/.6.4 million at the acquisition date, which is detailed as follows:

	Previous reported						Revised
	S/.000			US$000			S/.000			US$000
Cash and cash equivalents		3			1			3			1
Trade accounts receivable		4,675			1,564			3,811			1,275
Inventories		276			92			276			92
Prepaid expenses		33			11			33			11
Property, plant and equipment		711			238			711			238
Intangibles		1,377			461			1,377			461
Deferred income tax		(178	)		(60	)		16			4
Trade accounts payable		(3,592	)		(1,202	)		(3,592	)		(1,202	)
Contingent liabilities		(2,658	)		(889	)		(2,658	)		(889	)
Fair value of net assets		647			216			(23	)		(9	)

Goodwill		5,743			1,921			6,413			2,146
Total paid for acquisition		6,390			2,137			6,390			2,137

Cash payment for the acquisition		6,390			2,137			6,390			2,137
Cash and cash equivalent
of the acquired subsidiary		(3	)		(1	)		(3	)		(1	)
Direct cash outflow from acquisition		6,387			2,136			6,387			2,136

The income and the profit generated for the period from the acquisition date to September 30, 2014 amounted to S/.46.6 million and S/.1.8 million, respectively.

- 23 -

All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

b) Acquisition of DSD Construcciones y Montajes S.A. (DSD)

In August 2013, through the subsidiaries GyM Minería S.A., Ingeniería y Construcción Vial y Vives S.A. and GyM Chile S.p.A., the Group acquired control of DSD with the purchase of 85.95% of its equity shares. DSD is an entity domiciled in Chile whose main economic activity is the execution of electromechanical works and assemblies in construction projects of oil refineries, pulp and paper, power plants and mining plants.

During the period of twelve months after the acquisition date the Group reassessed the purchase price allocation from the acquisition of DSD Construcciones y Montajes S.A. which was made in August, 2013 and reallocated the amount of S/.1.7 million from goodwill (net of tax impact of S/.0.5 million and non-controlling interest of S/.0.3 million) to fixed assets, intangible, trade accounts receivable, other accounts receivable and contingent liabilities in the amounts of S/.0.4 million, S/.1.9 million, S/.0.2 million, S/.3.5 million and S/.3 million respectively. This effect corresponds to the measurement period adjustment of the preliminary fair value assigned to the assets and liabilities acquired.

The price paid by GyM for the acquisition of DSD Construcciones y Montajes S.A. amounted to US$37.2 million (equivalent to S/.103.9 million) and resulted in the recognition of goodwill for S/.6.1 million, at the acquisition date, which is detailed as follows:

	Previous reported						Revised
	S/.000			US$000			S/.000			US$000
Cash and cash equivalents		15,530			5,562			15,530			5,562
Trade accounts receivable		74,502			26,684			74,317			26,618
Accounts receivable from related parties		6,605			2,366			10,083			3,611
Prepaid expenses		1,032			369			1,032			369
Investments		2,608			935			2,608			935
Property, plant and equipment		52,504			18,805			52,922			18,955
Intangibles		5,741			2,056			7,591			2,719
Deferred income tax		2,192			785			2,192			785
Trade accounts payable		(5,328	)		(1,908	)		(5,328	)		(1,908	)
Other accounts payable		(38,679	)		(13,854	)		(38,679	)		(13,854	)
Contingent liabilities		(815	)		(292	)		(3,846	)		(1,378	)
Deferred income tax liability		(4,187	)		(1,500	)		(4,692	)		(1,681	)
Fair value of net assets		111,705			40,008			113,730			40,733

Non-controlling interest (14.05%)		(15,701	)		(5,624	)		(15,986	)		(5,725	)
Goodwill		7,868			2,802			6,128			2,178
Total paid for acquisition		103,872			37,186			103,872			37,186

Cash payment for the acquisition		103,872			37,186			103,872			37,186
Cash and cash equivalent
of the acquired subsidiary		(15,530	)		(5,562	)		(15,530	)		(5,562	)
Direct cash outflow from acquisition		88,342			31,624			88,342			31,624

The income and the profit generated for the period from the acquisition date to December 31, 2013 amounted to S/.82.97 million and S/.8.3 million, respectively.

If DSD Construcciones y Montajes S.A. had been consolidated from January 1, 2013, the income and the profit generated would have been S/.182.68 million and S/.10.15 million, respectively

c) Acquisition of Morelco S.A.S.

In December 23, 2014, through subsidiary GyM S.A. the Company obtained control of Morelco S.A.S. (Morelco) by acquiring 70.00% of its capital shares. Morelco is an entity domiciled in Colombia that is mainly engaged in providing construction and assembly services. This acquisition is part of the Group’s plan to increase its presence in markets that present high growth potential as in Colombia, and in attractive industries, such as mining and energy.

- 24 -

All amounts are expressed in thousands of S/. unless otherwise stated)

UNAUDITED

The acquisition value of the investment in Morelco amounted to US$82.3 million (equivalent to S/.244.8 million) which is comprised of cash payments of US$78.5 million (equivalent to S/.231.5 million), a balance payable of US$9.1 million (equivalent to S/.27.1 million), and resulted in the recognition of goodwill for US$29.9 million (equivalent to S/.87.2 million) at the acquisition date.

The following tables summarize the consideration paid for Morelco and the provisional determination of fair value of assets acquired, liabilities assumed and the non-controlling interest at the acquisition date:

	Previous reported						Revised
	S/.000			US$000			S/.000			US$000

Cash and cash equivalents		69,930			23,514			69,930			23,514
Trade receivables		92,138			30,981			92,138			30,981
Outstanding work accounts in progress – receivables from clients		101,533			34,140			101,533			34,140
Other receivables		63,949			21,503			63,949			21,503
Inventories		18,037			6,065			18,037			6,065
Prepaid expenses		2,133			717			2,133			717
Investments held for sale		7,291			2,452			7,291			2,452
Property, plant and equipment		70,756			23,792			70,756			23,792
Intangibles		64,491			21,685			64,491			21,685
Deferred income tax assets		8,031			2,700			8,031			2,700
Short-term borrowings		(31,204	)		(10,492	)		(31,204	)		(10,492	)
Long-term borrowings		(9,315	)		(3,132	)		(9,315	)		(3,132	)
Trade accounts payables		(103,739	)		(34,882	)		(103,739	)		(34,882	)
Other accounts payables		(87,863	)		(29,544	)		(87,863	)		(29,544	)
Contingent liabilities		(17,533	)		(5,895	)		(17,533	)		(5,895	)
Deferred income tax liability		(3,801	)		(1,278	)		(3,801	)		(1,278	)
Fair value of net assets (provisional)		244,834			82,326			244,834			82,326

Non-controlling interest (30.00%)		(73,450	)		(24,697	)		(73,450	)		(24,697	)
Goodwill (Note 17)		105,764			36,118			87,208			29,911
Initial purchase consideration		277,148			93,747			258,592			87,540

Cash payment for acquisition		231,464			78,462			231,464			78,462	)
Cash and cash equivalents of the acquired subsidiary		(69,930	)		(23,514	)		(69,930	)		(23,514	)
Direct cash outflow during the year for the acquisition		161,534			54,948			161,534			54,948

Final product Price Adjustment Agreement, GyM SA maintains an estimated payable associated with purchases of US$10.8 million (equivalent to S/.32.4 million) to be repaid by distributing a special dividend of Morelco to the seller, balance likewise recognized a receivable for GYM by revenue backlog of US$1.7 million (equivalent to S/.5.3 million) to be repaid by freeing up resources account Alianza Fiduciaria SA.

21	EVENTS AFTER THE DATE OF THE STATEMENT OF FINANCIAL POSITION

Graña y Montero S.A.A. a leading Engineering and Construction company, announced today that after signing a Memorandum of Understanding with Odebrecht Latinvest, Graña y Montero Group agreed to participate with a 20% stake in the shareholder equity of Concesionaria Gasoducto Sur Peruano S.A. This agreement represents for the Group an approximate investment of US$ 215 million. Concesionaria del Gasoducto Sur Peruano S.A., is responsible for the design, construction and operation of the pipeline system for gas transportation. The Southern gas pipeline is a project which will bring natural gas to the southern region of the country, especially to the provinces of Cuzco, Arequipa, Puno and Moquegua.

- 25 -

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