Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (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 March 2023

Commission File Number 001-35991

AENZA S.A.A.

(Exact name of registrant as specified in its charter)

N/A

(Translation of registrant’s name into English)

Republic of Peru

(Jurisdiction of incorporation or organization)

Av. Petit Thouars 4957

Miraflores

Lima 34, 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 ☒ 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): ☐

SIGNATURES

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.

AENZA S.A.A.

By:	/s/ FREDY CHALCO
Name:	Fredy Chalco Aguilar
Title:	VP of Corporate Finance
Date:	March 1, 2023

AENZA S.A.A. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2021 AND DECEMBER 31, 2022 (UNAUDITED)

(Free translation from the original in Spanish)

AENZA S.A.A. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2021 AND DECEMBER 31, 2022 (UNAUDITED)

CONTENTS		Page
Consolidated Statement of Financial Position		1
Consolidated Statement of Income		2
Consolidated Statement of Comprehensive Income		3
Consolidated Statement of Changes in Equity		4
Consolidated Statement of Cash Flows		5
Notes to the Consolidated Financial Statements		6 - 42

Peruvian Sol

US$

United States dollar

AENZA S.A.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

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

		As of December 31,
	Note	2021			2022
ASSETS
Current assets
Cash and cash equivalents	8		957,178			917,554
Trade accounts receivable, net	9		590,280			1,083,816
Work in progress	10		309,063			-
Accounts receivable from related parties	11		20,817			27,744
Other accounts receivable	12		487,058			402,741
Inventories, net			488,326			367,255
Prepaid expenses			32,142			28,098
Total current assets			2,884,864			2,827,208

Non-current assets
Trade accounts receivable, net	9		683,306			717,136
Accounts receivable from related parties	11		643,897			542,392
Prepaid expenses			23,607			17,293
Other accounts receivable	12		201,360			285,730
Inventories, net			-			65,553
Investments in associates and joint ventures	13		31,173			14,917
Investment property	14		63,011			60,417
Property, plant and equipment, net	14		303,170			285,972
Intangible assets, net	14		743,391			787,336
Right-of-use assets, net	14		47,717			50,207
Deferred tax asset			275,076			292,654
Total non-current assets			3,015,708			3,119,607

Total assets			5,900,572			5,946,815

LIABILITIES AND EQUITY

Current liabilities
Borrowings	15		241,340			574,262
Bonds	16		69,838			77,100
Trade accounts payable	17		980,767			1,035,291
Accounts payable to related parties	11		51,004			53,444
Current income tax			94,958			69,575
Other accounts payable	18		754,981			720,010
Other provisions	19		154,829			131,729
Total current liabilities			2,347,717			2,661,411

Non-current liabilities
Borrowings	15		338,560			305,631
Bonds	16		1,191,084			792,813
Other accounts payable	18		92,369			102,317
Accounts payable to related parties	11		50,712			27,293
Other provisions	19		329,497			570,224
Deferred tax liability			97,367			128,308
Total non-current liabilities			2,099,589			1,926,586
Total liabilities			4,447,306			4,587,997

Equity	20
Capital			871,918			1,196,980
Legal reserve			132,011			132,011
Voluntary reserve			29,974			29,974
Share Premium			1,131,574			1,142,092
Other reserves			(135,947	)		(95,036	)
Retained earnings			(829,714	)		(1,336,542	)
Equity attributable to controlling interest in the Company			1,199,816			1,069,479
Non-controlling interest			253,450			289,339
Total equity			1,453,266			1,358,818
Total liabilities and equity			5,900,572			5,946,815

The accompanying notes on pages 6 to 42 are an integral part of the consolidated financial statements.

- 1 -

AENZA S.A.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

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

		For the year ended
		December 31,
	Note	2021			2022


Revenues from construction activities			2,272,561			2,433,775
Revenues from services provided			1,094,439			1,104,900
Revenue from real estate and sale of goods			579,482			849,157
			3,946,482			4,387,832

Cost of construction activities			(2,178,648	)		(2,465,428	)
Cost of services provided			(918,212	)		(928,473	)
Cost of real estate and sale of goods			(454,484	)		(543,788	)
	21		(3,551,344	)		(3,937,689	)
Gross profit			395,138			450,143

Administrative expenses	21		(179,613	)		(162,598	)
Other income and expenses	22		(4,477	)		(287,715	)
Operating profit (loss)			211,048			(170	)

Financial expenses	23		(262,574	)		(254,249	)
Financial income	23		5,773			25,854
Share of the profit or loss of associates and joint ventures accounted for using the equity method	13		(861	)		1,907
Loss before income tax			(46,614	)		(226,658	)
Income tax expense			(43,700	)		(129,869	)
Loss from continuing operations			(90,314	)		(356,527	)
Loss from discontinued operation, net of tax			(26,774	)		-
Loss for the year			(117,088	)		(356,527	)

(Loss) profit attributable to:
Owners of the Company			(153,210	)		(455,244	)
Non-controlling interest			36,122			98,717
			(117,088	)		(356,527	)

Loss per share attributable to owners of the Company during the year	26		(0.176	)		(0.398	)

Loss per share from continuing operations attributable to owners of the Company during the year	26		(0.145	)		(0.398	)

The accompanying notes on pages 6 to 42 are an integral part of the consolidated financial statements.

- 2 -

AENZA S.A.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

	For the year ended
	December 31,
	2021			2022

Loss for the year		(117,088	)		(356,527	)
Other comprehensive income:
Items that may be subsequently reclassified to profit or loss
Other comprehensive income recycled		-			(7,460	)
Foreign currency translation adjustment, net of tax		(5,987	)		(23,613	)
Exchange difference from net investment in a foreign operation, net of tax		(428	)		(289	)
Other comprehensive income for the year, net of tax		(6,415	)		(31,362	)
Total comprehensive income for the year		(123,503	)		(387,889	)

Comprehensive income attributable to:
Owners of the Company		(159,592	)		(486,483	)
Non-controlling interest		36,089			98,594
		(123,503	)		(387,889	)

Comprehensive income for the year attributable to owners of the Company:
Continuing operations		(132,818	)		(486,483	)
Discontinued operations		(26,774	)		-
		(159,592	)		(486,483	)

The accompanying notes on pages 6 to 42 are an integral part of the consolidated financial statements.

- 3 -

AENZA S.A.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED DECEMBER 31, 2021 AND 2022

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

	Attributable to the controlling interests of the Company
	Number
	of shares				Legal		Voluntary		Share		Other			Retained						Non-controlling
	In thousands		Capital		reserve		reserve		premium		reserves			earnings			Total			interest			Total

Balances as of January 1, 2021		871,918		871,918		132,011		29,974		1,131,574		(169,234	)		(728,637	)		1,267,606			327,690			1,595,296
(Loss) profit for the year		-		-		-		-		-		-			(153,210	)		(153,210	)		36,122			(117,088	)
Foreign currency translation adjustment		-		-		-		-		-		(5,957	)		-			(5,957	)		(30	)		(5,987	)
Exchange difference from net investment in a foreign operation		-		-		-		-		-		(425	)		-			(425	)		(3	)		(428	)
Comprehensive income of the year		-		-		-		-		-		(6,382	)		(153,210	)		(159,592	)		36,089			(123,503	)
Transactions with shareholders:
- Dividend distribution		-		-		-		-		-		-			-			-			(42,974	)		(42,974	)
- Acquisition of (profit distribution to) non-controlling interests, net		-		-		-		-		-		-			-			-			(27,104	)		(27,104	)
- Additional acquisition of non-controlling		-		-		-		-		-		39,669			-			39,669			(39,669	)		-
- Deconsolidation Adexus S.A.		-		-		-		-		-		-			52,133			52,133			-			52,133
- Dilution of non-controlling shareholders		-		-		-		-		-		-			-			-			(582	)		(582	)
Total transactions with shareholders		-		-		-		-		-		39,669			52,133			91,802			(110,329	)		(18,527	)
Balances as of December 31, 2021		871,918		871,918		132,011		29,974		1,131,574		(135,947	)		(829,714	)		1,199,816			253,450			1,453,266

Balances as of January 1, 2022		871,918		871,918		132,011		29,974		1,131,574		(135,947	)		(829,714	)		1,199,816			253,450			1,453,266
(Loss) profit for the period		-		-		-		-		-		-			(455,244	)		(455,244	)		98,717			(356,527	)
Foreign currency translation adjustment		-		-		-		-		-		(23,492	)		-			(23,492	)		(121	)		(23,613	)
Other comprehensive income recycled		-		-		-		-		-		(7,460	)		-			(7,460	)		-			(7,460	)
Exchange difference from net investment in a foreign operation		-		-		-		-		-		(287	)		-			(287	)		(2	)		(289	)
Comprehensive income of the period		-		-		-		-		-		(31,239	)		(455,244	)		(486,483	)		98,594			(387,889	)
Transactions with shareholders:
- Dividend distribution		-		-		-		-		-		-			-			-			(19,847	)		(19,847	)
- Acquisition of (profit distribution to) non-controlling interests, net		-		-		-		-		-		-			-			-			(36,879	)		(36,879	)
- Reclasification of PUT option Morelco		-		-		-		-		-		72,150			(72,150	)		-			-			-
- Capital increase		325,062		325,062		-		-		10,518		-			-			335,580			-			335,580
- Dilution of non-controlling shareholders		-		-		-		-		-		-			2,598			2,598			(6,152	)		(3,554	)
- Prior year adjustments		-		-		-		-		-		-			17,968			17,968			173			18,141
Total transactions with shareholders		325,062		325,062		-		-		10,518		72,150			(51,584	)		356,146			(62,705	)		293,441
Balances as of December 31, 2022		1,196,980		1,196,980		132,011		29,974		1,142,092		(95,036	)		(1,336,542	)		1,069,479			289,339			1,358,818

The accompanying notes on pages 6 to 42 are an integral part of the consolidated financial statements.

- 4 -

AENZA S.A.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

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

		For the year ended
		December 31,
	Note	2021			2022

OPERATING ACTIVITIES
Loss before income tax			(78,350	)		(226,658	)
Adjustments to profit not affecting cash flows from
operating activities:
Depreciation	14 a)		98,795			74,988
Amortization of intangible assets	14 b)		106,512			102,035
Impairment of inventories			2,984			1,437
Impairment of accounts receivable and other accounts receivable			29,389			182,288
Reversal of impairment of inventories			-			(3,409	)
Debt condonation			-			(6,858	)
Impairment of property, plant and equipment			8,088			8,200
Impairment of intangible assets			-			2,530
Other comprehensive income recycled			-			(7,460	)
Decrease due to renegotiation of PUT Morelco			-			(3,706	)
Other provisions			62,246			299,058
Renegotiation of liability for acquisition of non-controlling Morelco			(70,322	)		-
Financial expense,net			222,453			158,485
Impairment of investment			-			14,804
Share of the profit and loss of associates and joint ventures accounted for using the equity method	13		861			(1,907	)
Reversal of provisions			(13,027	)		(15,935	)
Disposal (reversal) of assets			2,410			3,490
Loss (profit) on sale of property, plant and equipment			(3,937	)		(3,889	)
Loss on remeasurement of accounts receivable			106,613			81,130
Net variations in assets and liabilities:
Trade accounts receivable and working in progress			(82,527	)		(317,316	)
Other accounts receivable			41,626			(154,014	)
Other accounts receivable from related parties			(57,258	)		22,573
Inventories			59,201			58,427
Pre-paid expenses and other assets			(11,681	)		33,174
Trade accounts payable			(55,131	)		130,817
Other accounts payable			72,991			(71,716	)
Other accounts payable to related parties			7,703			(10,192	)
Other provisions			(27,964	)		(41,000	)
Interest paid			(146,369	)		(144,236	)
Payments for purchases of intangibles - Concessions			(5,157	)		-
Income tax paid			(75,641	)		(124,047	)
Net cash provided by operating activities			194,508			41,093

INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment			9,162			11,274
Interest received			2,474			12,894
Dividends received			3,445			380
Acquisition of investment property			(152	)		(52	)
Acquisition of intangible assets			(53,808	)		(165,157	)
Loss of deconsolidation of investment			(11,223	)		-
Acquisition of property, plant and equipment			(38,087	)		(64,626	)
Net cash applied to investing activities			(88,189	)		(205,287	)

FINANCING ACTIVITIES
Borrowing received			281,079			492,961
Bonds issued			357,424			-
Borrowing paid			(548,360	)		(224,979	)
Amortization of bonds issued			(48,858	)		(56,745	)
Transaction costs related to loans and borrowings			(5,681	)		(13,736	)
Dividends paid to non-controlling interest			(25,693	)		(34,477	)
Cash received (return of contributions) from non-controlling shareholders			(27,104	)		(36,879	)
Acquisition or sale of interest in a subsidiary of non-controlling shareholders			(33,232	)		-
Net cash (applied to) provided by financing activities			(50,425	)		126,145
Net increase in cash			55,894			(38,049	)
Exchange difference			1,116			(1,575	)
Cash and cash equivalents at the beginning of the year			900,168			957,178
Cash and cash equivalents at the end of the year	8		957,178			917,554

NON-CASH TRANSACTIONS:
Capitalization of interests			1,244			937
Acquisition of assets through finance leases			104			70
Dividends declared to non-controlling interest			17,281			17,969
Acquisition of right-of-use assets			7,988			18,829
Capitalization of convertible bonds			-			335,580

The accompanying notes on pages 6 to 42 are an integral part of the consolidated financial statements.

- 5 -

AENZA S.A.A. AND SUBSIDIARIES

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2021 AND DECEMBER 31, 2022 (UNAUDITED)

GENERAL INFORMATION

Company’s incorporation and operations

AENZA S.A.A., (hereinafter the “Company” or “AENZA”) is the parent Company of the AENZA Corporation which comprise the Company and its subsidiaries (hereinafter, the “Corporation”) and is mainly engaged in holding investments in its subsidiaries. Additionally, the Company provides services of strategic and functional advice and office leases space to the Corporation companies.

The Corporation is a conglomerate of companies with operations including different business activities, the most significant are engineering and construction, energy, infrastructure (public concession ownership and operation) and real estate businesses. See details of operating segments in Note 7.

Authorization for the issue of the financial statements

The consolidated financial statements for the year ended December 31, 2022, have been prepared and issued with authorization of Management and the Board of Directors on March 1, 2023 and will be submitted for the consideration and approval of the General Shareholders’ Meeting to be held within the term established by law. In Management’s opinion, the financial statements as of December 31, 2022 will be approved without modifications.

The consolidated financial statements for the year ended December 31, 2021, were prepared and issued with authorization of Management and the Board of Directors on March 4, 2022 and were approved on the General Shareholders’ Meeting held on March 31, 2022.

Collaboration and Benefits Agreement – “The Agreement”

On September 15, 2022, the Collaboration and Benefits Agreement (the “Agreement” hereinafter) was signed by the Public Ministry, the Ad Hoc Public Attorney’s Office and the Company. Through this document, AENZA accepts it was utilized by certain former executives to commit illicit acts until 2016, and commits to pay a civil penalty to the Peruvian State of S/488.9 million (S/333.3 million and US$40.7 million) under the scope of application of the Law No. 30737 implementing regulation.

Pursuant to the Agreement signed the payment will be made within a term of 12 years, under a legal interest rate in Soles and US Dollars (3.03% and 1.15% effective interest annual rate as of December 31, 2022, respectively); in addition, the Company compromise to establish a package of guarantees after court’s approval i) a trust that includes shares issued by a subsidiary of AENZA; ii) a real state asset and iii) a guaranty account with funds equivalent to the annual fees corresponding to the following year. Among other conditions, the Agreement includes a restriction for Aenza and the subsidiaries Cumbra Peru S.A., and Unna Transporte S.A.C. to participate in public construction and road maintenance contracts with the Peruvian State for two (2) years, counted from the court approval. The other companies of the Corporation are not subject to any impediment or prohibition to contract with the Peruvian State. As of December 31, 2022, the Company registered the full amount of the liability associated with the Agreement for S/488.9 million (see, Note 19-a).

As of December 31, 2022, issuance date of the condensed interim consolidated financial statements, in opinion of Corporate Management and its legal advisors, the civil penalty covers the total contingency to which the Company is exposed as a consequence of the investigations revealed in notes to the consolidated financial statements since year 2017. Nevertheless, the Agreement is subject to court approval and its terms and conditions are subject to confidentiality provisions in such agreement.

- 6 -

The Agreement includes a reserve clause to readjust the amount of civil damages determined with respect to three projects, as well as the payment schedule resulting from such readjustment. This clause is to be implemented, before the approval of the agreement, or within a maximum sixty (60) days term from the date of this agreement. The Company’s Management estimates that if this reserve is to be applied, the provision for civil damages could increase up to 5%.

Investigation and administrative proceeding initiated by INDECOPI in connection with the labor contracting market

On February 7, 2022, Cumbra Perú S.A. (formerly “GyM”) and Unna Transporte S.A.C. (formerly Concar) were notified with Resolution N° 038-2021/DLC-INDECOPI, whereby the Commission for the Defense of Free Competition of INDECOPI resolved to initiate an administrative sanctioning procedure regarding the alleged conduct of a horizontal collusive practice in the modality of concerted sharing of suppliers in the market for hiring workers in the construction sector at the national level between the years 2011 and 2017.

On April 7, 2022, Cumbra Peru S.A. and Unna Transporte S.A.C. submitted a proposal for a cease and desist commitment for the early termination of the administrative sanctioning procedure, in which (i) they acknowledged the imputed conduct, (ii) they committed to maintain in the years 2022, 2023 and 2024 a program of compliance with free competition rules, and (iii) they agreed to pay a compensation amounting to S/2,696.8 thousands in two installments (one after 60 days and the second after 12 months). By Resolution No. 054-2022/CLC-INDECOPI of August 19, 2022, the Commission for the Defense of Free Competition of INDECOPI approved the proposed cease and desist commitment and concluded the sanctioning procedure.

New measures for the State of Emergency due to COVID-19

Through Supreme Decree No. 044-2020-PCM dated March 15, 2020, a State of National Emergency was declared in Peru due to the outbreak of the coronavirus (COVID-19) in the country. Since COVID-19 has been classified as a pandemic by the World Health Organization as it has spread to more than one hundred countries simultaneously, the Peruvian State took as a measure a period of mandatory social immobilization until June 30, 2020.

Subsequently, Supreme Decrees were issued extending the state of emergency, the last extension in 2020 was through Supreme Decree N° 184-2020-PCM, which extended the State of National Emergency for a period of 31 calendar days ending on December 31, 2020. During 2021 and 2022, Supreme Decrees continued to be issued extending the state of emergency, thus Supreme Decree N° 015-2022 extended the state of emergency until February 25, 2023.

The Corporation has adopted all measures deemed necessary and appropriate for operational continuity, ensuring the safety and health protection of its employees and customers in accordance with the measures ordered by the competent authorities for the control of COVID-19.

- 7 -

BASIS OF PREPARATION

The condensed interim consolidated financial statements for the year ended as of December 31, 2022 have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The condensed interim consolidated financial statements provide comparative information regarding prior year; however, they do not include all the information and disclosures required in the annual consolidated financial statements, so they must be read together with the audited consolidated financial statements for the year ended as of December 31, 2021, which have been prepared in accordance with International Standards of Financial Information (hereinafter “IFRS”).

The condensed interim consolidated financial statements are presented in thousands of Peruvian Soles, unless otherwise stated.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies used in the preparation of these condensed interim consolidated financial statements are consistent with those applied in the preparation of the consolidated financial statements as of December 31, 2021.

3.1.

Standards, amendments, and interpretation adopted by the Group

Standards, amendments and interpretation that have entered in force as of January 1, 2022, have not had impact on the condensed interim consolidated financial statements as of December 31, 2022, and for this reason they have not been disclosed. The Corporation has not adopted in advance any amendment and modification that are not yet effective.

FINANCIAL RISK MANAGEMENT

Financial risk management is carried out by Corporation’s Management which oversees risks in specific areas, such as foreign exchange rate risk, price risk, cash flow and fair value interest rate risk, credit risk, the use of derivative and non-derivative financial instruments and the investment of liquidity in excess, which is supervised and monitored on periodic bases.

4.1

Financial risk factors

Corporation’s activities are exposed to a variety of financial risks: market risk (including foreign exchange risk, price risk, fair value interest rate risk and cash flow interest rate risk), credit risk and liquidity risk. The Corporation’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Corporation’s financial performance.

Market risks

Foreign exchange risk

Corporation is exposed to exchange rate risk as a result of the transactions carried out locally in foreign currency and due to its operations abroad. As of December 31, 2021 and 2022, this exposure is mainly concentrated in fluctuations of Peruvian soles, Chilean and Colombian Pesos compared to U.S. dollar.

- 8 -

The balances of financial assets and liabilities denominated in foreign currencies correspond to balances in U.S. dollars, which are expressed at the published bid and ask exchange rate updated as of the report date, according to the type of currency:

	As of		As of
	December 31,		December 31,
	2021		2022

Soles (a)		3.998		3.820
Chilean Pesos (b)		844.69		855.86
Colombian Pesos (c)		3,981.16		4,810.20

(a)

Soles published by the Superintendencia de Bancos, Seguros y Administradoras de Fondos de Pensiones (“SBS” by its acronym in Spanish).

(b)

Chilean pesos published by the Banco Central de Chile.

(c)

Colombian pesos published by Banco de la Republica de Colombia.

The consolidated statement of financial position as of December 31, includes the following:

	2021		2022
	USD(000)		USD(000)

Assets		519,448		539,249
Liabilities		512,947		541,589

For the year ended as of December 31, 2021 and 2022, the Corporation’s exchange gains and losses for the Peruvian Sol, the Chilean and Colombian Pesos exposure against the U.S. dollar were:

	2021			2022

Gain		383,199			449,864
Loss		(430,410	)		(450,133	)

ii)

Price risk

Management considers that the exposure of the Corporation to the price risk of its investments in mutual funds, and equity securities is low since the invested amounts are not significant. Any fluctuation in their fair value will not have any significant impact on the balances reported in the consolidated financial statements.

iii)

Cash flow and fair value interest rate risk

The Corporation’s interest rate risk mainly arises from its long-term borrowings. Borrowings issued at variable rates expose the Corporation to cash flow interest rate risk. Borrowings issued at fixed rates expose the Corporation to fair value interest rate risk.

Credit risk

Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as customer credit counterparties, including the outstanding balance of accounts receivable and committed transactions.

- 9 -

Concerning to loans provided to related parties, the Corporation has measures in place to ensure the recovery of these loans through the controls maintained by Corporate Finance Management and performance evaluation conducted by the Board of Directors.

Management does not expect the Corporation to incur in losses arisen from the performance of these counterparties, except for those already recorded at the financial statements.

Liquidity risk

Prudent management of liquidity risk involves maintaining sufficient cash and cash equivalents, the availability of financing through an adequate number of committed sources of credit facilities and the ability to close market positions. Historically, cash flows produced by the Corporation has enabled them it to meet their obligations. The Corporation has implemented several measures to reduce its exposure to liquidity risk, and developed a financial plan based in different stages, which were designed assuming the commitment to comply within a reasonable time frame. The Financial Plan aims to enable compliance with multiply obligations by corporate and it subsidiaries.

Corporate Finance Management supervise cash flow projections performed on liquidity requirements of the Corporation to ensure there is sufficient cash to cover operational needs so that Corporation does not breach the limits of indebtedness or guarantees (covenants), if applicable, on any of its borrowing facilities. Minor financing operations are controlled by Finance Management of each subsidiary.

Such projections take into consideration Corporation’s debt financing plans, covenant compliance, internal ratio targets compliance in the consolidated statement of financial position and, if applicable, external regulatory or legal requirements, for example, foreign currency restrictions.

Surplus cash over the balance required for working capital management is invested in interest-bearing bank accounts or time deposits, selecting instruments with adequate maturities and sufficient liquidity.

The table below analyzes Corporation’s financial liabilities grouped on the basis of the period remaining as of the reporting date of these consolidated statement of financial position in regard of the date of its maturity. The amounts disclosed in the table are the contractual undiscounted cash flows, which include interest to be accrued according to the established schedule.

	Less than		1-2		2-5		More than
As of December 31, 2021	1 year		years		years		5 years		Total

Other financial liabilities (except for finance leases and lease liability for right-of-use asset)		224,503		52,751		173,392		124,320		574,966
Finance leases		5,624		4,613		296		-		10,533
Lease liability for right-of-use asset		18,817		24,295		21,993		8,086		73,191
Bonds		137,852		206,476		837,931		792,037		1,974,296
Trade accounts payables (except non-financial liabilities)		912,826		-		-		-		912,826
Accounts payables to related parties		51,004		50,712		-		-		101,716
Other accounts payables and other provisions (except non-financial liabilities)		323,070		22,941		109,383		422,666		878,060
		1,673,696		361,788		1,142,995		1,347,109		4,525,588

- 10 -

	Less than		1-2		2-5		More than
As of December 31, 2022	1 year		years		years		5 years		Total

Other financial liabilities (except for finance leases and lease liability for right-of-use asset)		599,310		71,732		216,392		-		887,434
Finance leases		873		-		-		-		873
Lease liability for right-of-use asset		19,075		31,706		23,386		112		74,279
Bonds		141,246		185,114		419,969		707,800		1,454,129
Trade accounts payables (except non-financial liabilities)		1,035,142		-		-		-		1,035,142
Accounts payables to related parties		53,444		25,420		697		1,176		80,737
Other accounts payables and other provisions (except non-financial liabilities)		252,902		26,199		155,552		470,129		904,782
		2,101,992		340,171		815,996		1,179,217		4,437,376

4.2

Capital management risk

Corporation’s objectives regarding capital management is to safeguard Corporation’s ability to continue operations as a going concern basis in order to provide returns for their shareholders, benefits for other stakeholders and maintain an optimal capital structure to minimize capital cost. Since 2017 Corporation context and situation has lead Management to monitor deviations that may cause non-compliance with covenants and hinder liabilities renegotiation (see, Note 15). In extraordinary events, Corporation identifies possible deviations, requirements and establishes a plan.

In order to maintain or adjust capital structure, Corporation may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce their debt.

Corporation monitors its capital on the basis of the leverage ratio. This ratio is calculated by dividing net debt into total capital. Net debt corresponds to the total of financial obligations (including current and non-current borrowings), less cash and cash equivalents. Total capital corresponds to the ‘equity’ as shown in the consolidated statement of financial position plus net debt.

As of December 31, 2021 and 2022, the leverage ratio is presented below.

	2021			2022
Total financial liabilities and bonds (Note 15 and Note 16)		1,840,822			1,749,806
Less: Cash and cash equivalents (Note 8)		(957,178	)		(917,554	)
Net debt (a)		883,644			832,252
Total equity		1,453,266			1,358,818
Total capital (b)		2,336,910			2,191,070

Leverage ratio (a/b)		0.38			0.38

4.3

Fair value estimation

The following levels of measurement have been established in order to classify the type of valuation used by Corporation for on their financial instruments at fair value.

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 Corporation).

- 11 -

The table below shows Corporation’s liabilities measured at fair value:

	Level 3
As of December 31, 2021

Financial liabilities
Other financial entities (Note 15-b)		165,878

As of December 31, 2022

Financial liabilities
Other financial entities (Note 15-b)		162,750

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

Estimates and judgments used are continuously evaluated and are based on historical experience among other factors, including expectations of future events that are believed to be reasonable under current circumstances.

In preparing these condensed interim consolidated financial statements, the significant judgements made by management in applying Corporation’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, 2021.

SEASONALITY OF OPERATIONS

The Corporation does not present seasonality in the operations of any of its subsidiaries; and develop its business during the normal course of the year.

OPERATING SEGMENTS

Operating segments are reported consistently with the internal reports that are reviewed by Corporation’s, chief decision-maker; that is the Executive Committee, which is led by the Chief Executive Officer. This Committee acts as the highest authority in making operational decisions, responsible for allocating resources and evaluating the performance of each operating segment.

Corporation’s operating segments are assessed by the activities of the following business units: (i) engineering and construction, (ii) energy, (iii) infrastructure, and (iv) real estate.

As set forth under IFRS 8, reportable segments by significance of income are: ‘engineering and construction’, ‘energy’ and ‘infrastructure’. However, Management has voluntarily decided to report on all its operating segments.

Inter-segmental sales transactions are entered into prices similar to those that would have been agreed with unrelated third parties. Revenues from external customers reported are measured in a consistent manner under the basis for preparation of the consolidated financial statements. Sales of goods are related to real estate segment. Revenues from services are related to other segments.

Corporation sales and receivables are not concentrated on a few customers. There is no external customer that represents 10% or more of Corporation’s revenue.

- 12 -

The table below shows Corporation’s consolidated financial statements by operating segments:

Operating segments financial position

Segment reporting

					Infrastructure
As of December 31, 2021	Engineering and construction		Energy		Toll roads		Transportation		Water treatment		Real estate		Parent Company operations		Eliminations			Consolidated

Assets
Cash and cash equivalent		303,925		121,873		114,100		182,607		7,499		109,828		117,346		-			957,178
Trade accounts receivables, net		366,299		67,662		38,418		106,856		1,003		9,958		84		-			590,280
Work in progress		309,063		-		-		-		-		-		-		-			309,063
Accounts receivable from related parties		95,390		121		48,012		4,309		-		3,166		52,644		(182,825	)		20,817
Other accounts receivable		390,133		31,092		30,057		18,734		960		3,783		12,297		2			487,058
Inventories, net		48,192		35,489		7,662		31,949		13		366,650		-		(1,629	)		488,326
Prepaid expenses		15,838		3,575		6,531		344		52		-		5,802		-			32,142
Total current assets		1,528,840		259,812		244,780		344,799		9,527		493,385		188,173		(184,452	)		2,884,864

Long-term trade accounts receivable, net		851		-		15,654		666,801		-		-		-		-			683,306
Long-term accounts receivable from related parties		335,150		-		19,700		42		11,536		-		584,596		(307,127	)		643,897
Prepaid expenses		-		981		20,558		1,894		684		-		-		(510	)		23,607
Other long-term accounts receivable		10,448		86,815		-		-		7,346		57,243		39,508		-			201,360
Investments in associates and joint ventures		108,038		8,951		-		-		-		5,443		1,559,672		(1,650,931	)		31,173
Investment property		-		-		-		-		-		22,416		42,558		(1,963	)		63,011
Property, plant and equipment, net		142,228		153,456		7,056		749		181		6,845		1,653		(8,998	)		303,170
Intangible assets, net		142,499		257,580		322,625		351		-		733		14,575		5,028			743,391
Right-of-use assets, net		3,825		3,890		5,308		61		17		1,888		40,789		(8,061	)		47,717
Deferred income tax asset		179,319		4,717		21,304		-		644		16,960		47,038		5,094			275,076
Total non-current assets		922,358		516,390		412,205		669,898		20,408		111,528		2,330,389		(1,967,468	)		3,015,708
Total assets		2,451,198		776,202		656,985		1,014,697		29,935		604,913		2,518,562		(2,151,920	)		5,900,572

Liabilities
Borrowings		136,512		27,046		3,687		45		18		69,065		13,573		(8,606	)		241,340
Bonds		4,896		-		36,637		24,496		-		-		3,809		-			69,838
Trade accounts payable		767,792		67,686		44,210		30,637		464		30,401		38,894		683			980,767
Accounts payable to related parties		130,848		1,079		47,340		42,185		19		19,155		13,623		(203,245	)		51,004
Current income tax		59,407		15,748		17,920		-		347		1,058		478		-			94,958
Other accounts payable		560,920		23,116		38,198		9,104		791		91,342		31,510		-			754,981
Provisions		70,585		25,498		4,158		-		-		560		54,028		-			154,829
Total current liabilities		1,730,960		160,173		192,150		106,467		1,639		211,581		155,915		(211,168	)		2,347,717

Borrowings		5,382		121,693		1,721		15		-		5,315		205,244		(810	)		338,560
Long-term bonds		21,386		-		215,296		602,201		-		-		352,201		-			1,191,084
Other long-term accounts payable		54,026		-		8,163		219		2,862		24,427		2,672		-			92,369
Long-term accounts payable to related parties		25,957		-		1,006		88,213		24,671		-		197,844		(286,979	)		50,712
Provisions		56,362		55,279		33,188		3,039		-		-		181,629		-			329,497
Deferred income tax liability		18,665		31,187		-		47,515		-		-		-		-			97,367
Total non-current liabilities		181,778		208,159		259,374		741,202		27,533		29,742		939,590		(287,789	)		2,099,589
Total liabilities		1,912,738		368,332		451,524		847,669		29,172		241,323		1,095,505		(498,957	)		4,447,306
Equity attributable to controlling interest in the Company		524,807		378,653		149,904		125,271		763		139,728		1,420,221		(1,539,531	)		1,199,816
Non-controlling interest		13,653		29,217		55,557		41,757		-		223,862		2,836		(113,432	)		253,450
Total liabilities and equity		2,451,198		776,202		656,985		1,014,697		29,935		604,913		2,518,562		(2,151,920	)		5,900,572

- 13 -

Operating segments financial position

Segment reporting

					Infrastructure
As of December 31, 2022	Engineering and construction		Energy		Toll roads		Transportation		Water treatment		Real estate		Parent Company operations		Eliminations			Consolidated

Assets
Cash and cash equivalent		209,737		104,553		130,213		171,747		2,910		111,487		186,907		-			917,554
Trade accounts receivables, net		697,512		80,245		34,183		124,208		791		146,316		561		-			1,083,816
Accounts receivable from related parties		86,145		68		54,876		4,455		52		378		115,736		(233,966	)		27,744
Other accounts receivable		298,784		39,921		38,448		15,229		30		5,380		7,294		(2,345	)		402,741
Inventories, net		41,933		29,935		9,655		39,780		-		247,539		-		(1,587	)		367,255
Prepaid expenses		10,945		2,055		5,496		369		162		448		8,623		-			28,098
Total current assets		1,345,056		256,777		272,871		355,788		3,945		511,548		319,121		(237,898	)		2,827,208

Long-term trade accounts receivable, net		2,806		-		16,215		694,146		-		3,969		-		-			717,136
Long-term accounts receivable from related parties		299,268		-		15,858		42		14,015		-		602,004		(388,795	)		542,392
Prepaid expenses		-		826		14,549		1,731		632		-		65		(510	)		17,293
Other long-term accounts receivable		101,366		89,782		-		-		7,346		55,347		31,889		-			285,730
Inventories, net		-		-		-		-		-		65,553		-		-			65,553
Investments in associates and joint ventures		975		12,049		-		-		-		2,752		1,632,881		(1,633,740	)		14,917
Investment property		-		-		-		-		-		19,823		40,594		-			60,417
Property, plant and equipment, net		102,822		176,596		6,193		2,355		150		7,531		1,286		(10,961	)		285,972
Intangible assets, net		131,431		363,066		274,597		238		-		615		13,414		3,975			787,336
Right-of-use assets, net		8,745		12,795		7,106		23		143		2,580		38,485		(19,670	)		50,207
Deferred income tax asset		175,703		4,572		26,787		-		680		20,531		59,316		5,065			292,654
Total non-current assets		823,116		659,686		361,305		698,535		22,966		178,701		2,419,934		(2,044,636	)		3,119,607
Total assets		2,168,172		916,463		634,176		1,054,323		26,911		690,249		2,739,055		(2,282,534	)		5,946,815

Liabilities
Borrowings		19,191		38,612		3,844		17		6		43,118		480,735		(11,261	)		574,262
Bonds		4,554		-		41,343		31,203		-		-		-		-			77,100
Trade accounts payable		740,292		124,259		52,916		62,049		223		34,067		16,950		4,535			1,035,291
Accounts payable to related parties		297,505		2,734		46,257		22,421		296		12,183		23,645		(351,597	)		53,444
Current income tax		11,779		247		8,607		2,433		105		45,730		674		-			69,575
Other accounts payable		491,210		19,724		58,733		9,146		699		115,661		24,837		-			720,010
Provisions		81,288		20,535		1,722		-		-		540		27,644		-			131,729
Total current liabilities		1,645,819		206,111		213,422		127,269		1,329		251,299		574,485		(358,323	)		2,661,411

Borrowings		6,480		100,597		3,462		-		138		10,852		192,435		(8,333	)		305,631
Long-term bonds		16,719		-		177,341		598,753		-		-		-		-			792,813
Other long-term accounts payable		94,261		-		2,243		189		2,930		-		2,694		-			102,317
Long-term accounts payable to related parties		7,886		57,300		1,176		27,294		21,663		-		189,451		(277,477	)		27,293
Provisions		11,453		49,701		11,463		6,144		-		-		491,463		-			570,224
Deferred income tax liability		16,670		53,242		-		58,396		-		-		-		-			128,308
Total non-current liabilities		153,469		260,840		195,685		690,776		24,731		10,852		876,043		(285,810	)		1,926,586
Total liabilities		1,799,288		466,951		409,107		818,045		26,060		262,151		1,450,528		(644,133	)		4,587,997
Equity attributable to controlling interest in the Company		363,206		417,970		170,031		177,208		851		287,306		1,285,548		(1,632,641	)		1,069,479
Non-controlling interest		5,678		31,542		55,038		59,070		-		140,792		2,979		(5,760	)		289,339
Total liabilities and equity		2,168,172		916,463		634,176		1,054,323		26,911		690,249		2,739,055		(2,282,534	)		5,946,815

- 14 -

Operating segment performance

Segment reporting

							Infrastructure
For the period ended December 31, 2021	Engineering and construction			Energy			Toll roads			Transportation			Water treatment			Real estate			Parent Company operations			Elimination			Consolidated

Revenue		2,559,071			541,859			515,382			348,915			3,650			239,391			67,202			(328,988	)		3,946,482
Gross profit (loss)		121,058			110,078			81,964			81,993			1,322			42,025			3,372			(46,674	)		395,138
Administrative expenses		(125,094	)		(14,575	)		(14,460	)		(14,267	)		(449	)		(14,911	)		(46,193	)		50,336			(179,613	)
Other income and expenses, net		40,301			(4,400	)		(3,683	)		1,537			4			1,337			(38,705	)		(868	)		(4,477	)
Operating Profit (loss)		36,265			91,103			63,821			69,263			877			28,451			(81,526	)		2,794			211,048
Financial expenses		(121,712	)		(14,705	)		(29,442	)		(8,298	)		(124	)		(11,947	)		(118,676	)		42,330			(262,574	)
Financial income		1,870			1,034			2,544			520			510			2,269			40,740			(43,714	)		5,773
Dividends		-			-			-			-			-			-			20,008			(20,008	)		-
Share of profit or loss in associates and joint ventures		(1,794	)		2,833			-			-			-			831			11,280			(14,011	)		(861	)
(Loss) profit before income tax		(85,371	)		80,265			36,923			61,485			1,263			19,604			(128,174	)		(32,609	)		(46,614	)
Income tax		(11,435	)		(22,469	)		(10,012	)		(19,382	)		(500	)		(6,644	)		26,808			(66	)		(43,700	)
(Loss) profit from continuing operations		(96,806	)		57,796			26,911			42,103			763			12,960			(101,366	)		(32,675	)		(90,314	)
Loss from discontinuing operations		-			-			-			-			-			-			(26,716	)		(58	)		(26,774	)
(Loss) profit for the period		(96,806	)		57,796			26,911			42,103			763			12,960			(128,082	)		(32,733	)		(117,088	)

(Loss) profit from attributable to:
Owners of the Company		(93,600	)		51,294			15,946			31,577			763			794			(128,035	)		(31,949	)		(153,210	)
Non-controlling interest		(3,206	)		6,502			10,965			10,526			-			12,166			(47	)		(784	)		36,122
		(96,806	)		57,796			26,911			42,103			763			12,960			(128,082	)		(32,733	)		(117,088	)

- 15 -

Operating segment performance

Segment reporting

							Infrastructure
For the Period ended December 31, 2022	Engineering and construction			Energy			Toll roads			Transportation			Water treatment			Real estate			Parent Company operations			Elimination			Consolidated

Revenue		2,661,906			633,792			614,525			388,811			4,412			367,276			68,091			(350,981	)		4,387,832
Gross profit (loss)		(40,734	)		118,934			105,400			119,729			2,209			174,185			11,702			(41,282	)		450,143
Administrative expenses		(126,844	)		(13,942	)		(12,861	)		(10,806	)		(947	)		(15,932	)		(35,543	)		54,277			(162,598	)
Other income and expenses, net		75,282			3,538			25,291			(3,042	)		-			(5,014	)		(332,399	)		(51,371	)		(287,715	)
Operating (loss) profit		(92,296	)		108,530			117,830			105,881			1,262			153,239			(356,240	)		(38,376	)		(170	)
Financial expenses		(76,460	)		(20,280	)		(26,922	)		(7,235	)		(153	)		(15,212	)		(166,160	)		58,173			(254,249	)
Financial income		2,234			3,447			2,119			2,440			223			9,507			68,901			(63,017	)		25,854
Dividends		-			-			-			-			-			-			22,302			(22,302	)		-
Share of profit or loss in associates and joint ventures		17,342			3,098			-			-			-			626			(12,510	)		(6,649	)		1,907
(Loss) profit before income tax		(149,180	)		94,795			93,027			101,086			1,332			148,160			(443,707	)		(72,171	)		(226,658	)
Income tax		(10,654	)		(30,905	)		(19,587	)		(31,836	)		(481	)		(46,773	)		10,397			(30	)		(129,869	)
(Loss) profit from continuing operations		(159,834	)		63,890			73,440			69,250			851			101,387			(433,310	)		(72,201	)		(356,527	)
(Loss) profit for the period		(159,834	)		63,890			73,440			69,250			851			101,387			(433,310	)		(72,201	)		(356,527	)

(Loss) profit from attributable to:
Owners of the Company		(157,961	)		56,800			59,262			51,937			851			39,899			(433,451	)		(72,581	)		(455,244	)
Non-controlling interest		(1,873	)		7,090			14,178			17,313			-			61,488			141			380			98,717
		(159,834	)		63,890			73,440			69,250			851			101,387			(433,310	)		(72,201	)		(356,527	)

- 16 -

CASH AND CASH EQUIVALENTS

As of December 31, this account comprises:

	2021		2022

Cash on hand		936		727
Deposits in-transit		2,222		2,955
Bank accounts
Current accounts		142,029		363,130
Banco de la Nacion		19,847		19,280
Time deposits and mutual funds (a)		205,364		114,998
		367,240		497,408
Escrow account (b)
Operational funds		261,001		229,165
Reserve funds		163,939		71,966
Consortium funds		78,589		114,050
Guarantee funds		83,251		1,283
		586,780		416,464
Total Cash and cash equivalents		957,178		917,554

(a)

The Corporation maintains current accounts with local and foreign financial institution that include time deposits with maturities less than 90 days and may be renewed upon maturity. As of December 31, 2022, these deposits earn interest that fluctuated between 3.4% and 7.6% (0.26% and 1.75%, as of December 31, 2021).

(b)

The Corporation maintains trust accounts in local and foreign financial institutions for the exclusive use of operations in projects and join operations.

The reserve funds for the payments of bonds issued and other obligations of the Corporation corresponds to:

	2021		2022

Tren Urbano de Lima S.A.		103,269		49,397
Red Vial 5 S.A.		22,531		22,569
AENZA S.A.A.		7,386		-
Cumbra Ingenieria S.A.		12,760		-
Unna Energia S.A.		17,993		-
		163,939		71,966

- 17 -

TRADE ACCOUNTS RECEIVABLE, NET

As of December 31, this caption comprises the following:

	Total				Current				Non-current
	2021		2022		2021		2022		2021		2022

Receivables (net) (a)		773,575		894,571		269,427		366,007		504,148		528,564
Unbilled receivables (net) - Subsidiaries (b)		209,258		584,217		209,258		584,217		-		-
Unbilled receivables (net) - Concessions (c)		290,753		322,164		111,595		133,592		179,158		188,572
		1,273,586		1,800,952		590,280		1,083,816		683,306		717,136

The fair value of current accounts receivable it is similar to their carrying value because their average collection period is less than 60 days. These accounts receivable do not accrue interest and do not have specific guarantees.

As of December 31, trade accounts receivable corresponds to:

	2021		2022
Tren Urbano de Lima S.A.		773,657		818,354
Cumbra Peru S.A.		323,455		647,113
Viva Negocio Inmobiliario S.A. (i)		9,958		150,285
Unna Energia S.A.		67,662		80,245
Cumbra Ingeniería S.A.		43,695		53,205
Red Vial 5 S.A.		22,458		24,072
Carretera Andina del Sur S.A.C.		12,686		13,035
Unna Transporte S.A.C.		14,439		9,852
Carretera Sierra Piura S.A.C.		4,489		3,439
Concesionaria La Chira S.A.		1,003		791
Others		84		561
		1,273,586		1,800,952

As of December 31, 2022, the invoices receivable correspond mainly to the sale of the land to SEDAPAL in Inmobiliaria Almonte 2 S.A.C. (located in the district of Lurin, province of Lima, with an area of 209.59 hectares) for S/140 million, which will be payable in 7 installments, the last installment will be in August 2023.

(a)

Accounts Receivables are shown net of impairment of S/44.7 million and discounted at present value for S/0.7 million. (S/44.4 million for impairment, and S/0.9 million for present value, as of December 31, 2021). Aging is breakdown as follows:

	2021		2022
Current		683,921		853,531
Past due up to 30 days		41,222		29,078
Past due from 31 days up to 90 days		11,668		2,049
Past due from 91 days up to 120 days		15,814		1,437
Past due from 121 days up to 360 days		7,070		4,100
Past due over 360 days		13,880		4,376
		773,575		894,571

As of December 31, 2022, overdue amount over 360 days mainly includes invoices receivable from subsidiaries: Cumbra Peru S.A. for S/3.4 million, Cumbra Ingenieria S.A. for S/0.9 million (Cumbra Peru S.A. for S/9.5 million, Unna Transporte S.A.C. for S/2.7 million and Cumbra Ingenieria S.A. for S/1.6 million, as of December 31, 2021).

- 18 -

(b)

The unbilled amounts correspond to Engineering and Construction segment, based on estimates of completion percentage of progress for services rendered not billed yet, and provided services pending to be billed, these are presented net of impairment for S/3.8 million, and discounted to present value for S/2.8 million (S/5.2 million for impairment, and S/5.9 million for present value, as of December 31, 2021), and detailed by subsidiary:

	2021		2022
Cumbra Peru S.A.		170,063		533,389
Cumbra Ingenieria S.A.		24,177		38,922
Unna Transporte S.A.C.		10,291		6,192
Unna Energia S.A.		4,718		5,617
Others		9		97
		209,258		584,217

Below are the unbilled receivables of subsidiaries grouped by the main projects:

	2021		2022
Infrastructure
Operation and maintenance of roads		9,192		5,440
Others		1,099		752
		10,291		6,192

Energy		4,718		5,617

Engineering and Construction
Cumbra Peru S.A. - Inti Punku Consortium		16,873		167,360
Vial y Vives - DSD S.A. - Engineering and Construction Works		40,714		151,690
Cumbra Peru S.A. - Talara Refinery		43,677		77,448
Morelco S.A.S. - Engineering and Construction Works		5,751		58,075
Cumbra Peru S.A. - Concentrator Plant and tunnel of Quellaveco		50,148		54,996
Cumbra Ingenieria S.A. - Mina Gold Fields La Cima S.A. Project		3,872		22,455
Cumbra Peru S.A. - Toquepala Concentrator Maintenance Project		-		11,213
Cumbra Peru S.A. - Rio Urubamba Consortium		-		7,417
Cumbra Peru S.A. - Quebrada Honda Test Plant Project		346		5,417
Cumbra Peru S.A. - Gasoducto Piura Project		13,220		2,320
Others		19,639		13,920
		194,240		572,311

Parent Company Operation		9		97

		209,258		584,217

- 19 -

(c)

Unbilled receivables from concessions correspond to future invoice according to Concession Contract terms, as detailed below:

	2021		2022
Tren Urbano de Lima S.A.		256,526		281,487
Carretera Andina del Sur S.A.C.		12,667		12,796
Red Vial 5 S.A.		16,451		24,072
Carretera Sierra Piura S.A.C.		4,489		3,018
Concesionaria La Chira S.A.		620		791
		290,753		322,164

10.

WORK IN PROGRESS

As of 2021, work in progress includes those costs incurred related to future activities under engineering and construction contracts and according to management’s estimates all costs incurred would be billed and collected. As of December 31, 2021 the balance was S/309.1 million.

The methodology established that contract revenue was recognized based on the performance of a physical portion of the contract compared to the total committed. In the financial statements, the net position of the contract was presented as either an asset or a liability. The contract is considered an asset when the amount of costs incurred, plus recognized gains, estimated losses and approved valuations was greater than the amount billed. This asset was presented as “Work in Progress”. If the resulting amount was less than the invoiced amount, it was presented as a liability under “Accounts payable – Provision for estimated contract costs by stage of completion” (See Note 17 (a)-ii).

During the year 2022, the Company identified an error in the application of its revenue and cost recognition in the subsidiaries of the “Engineering and Construction” segment in relation to the IFRS 15 accounting standard “Revenue from Contracts with Customers”. Thus, the adjustments to the aforementioned revenue and cost recognition methodology have an impact on the accounting and allocation of considerations to performance obligations and related costs for the years ended December 31, 2021. The total effect of this adjustment is shown in the Accumulated Results account as of December 31, 2022 for a total of S/17,968. The Company evaluated the application of its methodology and the adjustments implemented to it, determining that the related impact was not material to the Company’s consolidated financial statements for the year ended December 31, 2021.

The following is a detail and description of the differences identified as of December 31, 2021, which will be included in the closing financial statements as of December 31, 2022:

As of December 31, 2021	Statement of financial position									Statement of income
	Assets			Liabilities			Retained earnings			Profit of the year
i) Revenue shortfall from ordinary activities		261,644			-			61,059			200,585
ii) Construction cost deficit - work in progress		(309,063	)		-			(173,701	)		(135,362	)
iii) Construction cost overruns - provision for contract costs		-			(67,937	)		95,697			(27,760	)
iv) Tax effect of identified adjustments		-			5,589			3,440			(9,029	)
v) Translation adjustment and effect on non-controlling interests		3,039			-			3,039			-
Sub total		(44,380	)		(62,348	)		(10,466	)		28,434
Total effect on shareholders’ equity as of December 31, 2021											17,968

- 20 -

11.

TRANSACTIONS WITH RELATED PARTIES

Transactions with related parties

Major transactions for the year ended December 31, 2021, and 2022 between the Company and its related parties are summarized as follows:

	2021		2022
Revenue from sales of goods and services:
- Joint operations		22,374		48,042
		22,374		48,042

Inter-company services are agreed based on market terms and conditions as if they had been agreed with third parties.

As of December 31, this balances comprises the following:

	2021				2022
	Receivable		Payable		Receivable		Payable
Current portion:
Joint operations
Consorcio Rio Urubamba		9,792		-		9,606		-
Consorcio Rio Mantaro		-		7,043		-		12,247
Consorcio Constructor Chavimochic		-		9,301		-		9,421
Consorcio Manperan		1,389		4,968		603		4,064
Consorcio TNT Vial y Vives - DSD Chile Ltda		-		633		8,664		3,153
Consorcio Inti Punku		1,865		1,733		4,030		3,104
Consorcio Peruano de Conservación		654		2,392		752		2,629
Consorcio Vial Quinua		-		1,947		-		1,945
Consorcio Italo Peruano		1,394		106		1,524		-
Consorcio GyM Conciviles		1,479		1,074		-		1,426
Terminales del Perú		92		399		88		600
Consorcio Ermitaño		1,028		515		547		-
Consorcio Norte Pachacutec		125		282		57		246
Consorcio GyM-Stracon		-		143		-		160
Consorcio Huacho Pativilca		5		82		51		39
Consorcio CDEM		-		1,545		-		-
Consorcio La Gloria		150		-		160		-
Otros menores		133		1,721		1,662		1,056
		18,106		33,884		27,744		40,090

Other related parties
Ferrovias S.A.		-		15,513		-		13,354
Peru Piping Spools S.A.C.		2,711		1,607		-		-
		2,711		17,120		-		13,354
Current portion		20,817		51,004		27,744		53,444

Non-current portion
Gasoducto Sur Peruano S.A.		643,897		-		542,392		-
Ferrovias S.A.		-		14,690		-		15,054
Ferrovias Participaciones S.A.		-		36,022		-		12,239
Non-current		643,897		50,712		542,392		27,293

Accounts receivable and payable are mainly of current maturity, except for accounts receivable from Gasoducto Sur Peruano S.A. (hereinafter “GSP”), Ferrovias S.A. and Ferrovias Participaciones S.A.; which have no specific guarantees. These balances do not generate interest considering their maturity in short term.

- 21 -

The non-current account receivable mainly corresponds to the obligations arising from the early termination of the GSP project. As of December 31, 2022, the balance include: (i) account receivable book value net of impairment recorded by the parent Company for S/383 million, and present value of S/140 million (S/400 million and S/77 million, as of December 31, 2021, respectively) using the discounted cash flow method, at a rate of 5.86% (2.73% in 2021), (ii) in Cumbra Peru S.A. accounts receivable and unbilled receivables balances from Consorcio Constructor Ductos del Sur (CCDS) to GSP for S/299 million, which includes S/275 million receivables from CCDS and S/24 million for loss of profits (as of December 31, 2021, S/321 million which includes S/289 million and S/32 million, respectively).

12.

OTHER ACCOUNTS RECEIVABLE

As of December 31, this caption comprises the following:

	Total				Current				Non-Current
	2021		2022		2021		2022		2021		2022
Guarantee deposits		198,670		227,822		184,872		143,444		13,798		84,378
Credit from public institutions and recoverable taxes		133,428		141,891		93,981		102,689		39,447		39,202
Petroleos del Peru S.A.- Petroperu S.A.		106,077		105,073		19,262		15,291		86,815		89,782
Claims to third parties		151,346		76,432		124,724		32,611		26,622		43,821
Advances to suppliers		33,769		56,987		33,769		56,987		-		-
Restricted funds		7,346		52,014		-		44,668		7,346		7,346
Inversiones Majes S.A.		27,193		21,081		-		-		27,193		21,081
Accounts receivable from personneel		16,864		2,359		16,864		2,359		-		-
Other minors		13,726		4,813		13,587		4,693		139		120
		688,418		688,471		487,058		402,741		201,360		285,730

The fair value of the other short-term accounts receivable is similar to their book value due to their short-term maturity. The non-current portion corresponds mainly to non-financial assets such as claims to third parties and tax credits. Other non-current accounts receivable maintain maturities that vary between 2 and 5 years.

The maximum exposure to credit risk as of the reporting date is the carrying amount of each class of other accounts receivable mentioned.

13.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

As of December 31, this caption comprises the following:

	2021		2022
Associates		22,047		2,754
Joint ventures		9,126		12,163
		31,173		14,917

- 22 -

Movement of our investments in associates for the year ended December 31, 2021, and 2022 is as follows:

	2021			2022
Balance as of January 1		35,516			31,173
Equity interest in results		(861	)		1,907
Dividends received		(3,445	)		(380	)
Capital reduction		-			(2,937	)
Investment impairment		-			(14,526	)
Investment disposal		-			(278	)
Conversion adjustment		(37	)		(42	)
Balance as of December 31		31,173			14,917

The most relevant associates are described below:

Gasoducto Sur Peruano S.A

In November 2015, the Company acquired a 20% interest in GSP and in turn, obtained a 29% interest in Consorcio Constructor Ductos del Sur (hereinafter “CCDS”) through its subsidiary Cumbra Peru S.A.

On July 22, 2014, GSP signed the concession contract with the Peruvian State for the construction, operation and maintenance of a natural gas pipeline transportation system to meet the demand of the cities in southern Peru (hereinafter the “Concession Contract”). Additionally, GSP signed an engineering, procurement and construction contract with CCDS.

The Company made an investment in GSP of US$242.5 million, and agreed to assume 20% of the performance bond established in the Concession Contract (for a total amount of US$262.5 million), and 21.49% of the guarantee for a bridge loan of US$600 million.

Early termination of the Concession Contract

On January 24, 2017, the Peruvian Ministry of Energy and Mines (hereinafter “MINEM”) declared the early termination of the Concession Contract, relying on the provisions of clause 6.7, as a consequence of not having accredited the financial closure within the contractual term, proceeding with the immediate execution of the entirety of the faithful performance guarantee.

The situation described in the previous paragraph generated the execution of the counter-guarantees granted by Aenza in favor of the issuer of the guarantees: US$52.5 million in the case of the performance bond and US$129 million for the corporate guarantee on the bridge loan granted to GSP. According to the Concession Contract, the guarantees were paid on behalf of GSP, therefore, the Company recognized the right to collect for US$181.5 million, which were recorded in 2016 as Receivables from Related Parties.

On October 11, 2017, the deed of agreement for the delivery of the assets of the Southern Peruvian gas pipeline concession was signed between GSP and MINEM. The assets included the works, equipment, facilities and engineering studies provided for the execution of the project.

Upon termination of the Concession Contract, and in accordance with the provisions of clause 20 thereof, the Peruvian State had the obligation to hire an internationally recognized auditing entity to calculate the net book value of the concession assets (hereinafter “NCV”), and to call up to three auctions on GSP’s assets. However, to date, the Peruvian State continues to fail to comply with these contractual obligations. The amount of the VCN was calculated at US$2,602 million by an independent auditing firm hired by GSP as of December 31, 2016.

- 23 -

AENZA S.A.A. Collection Actions.

On December 21, 2018, the Company filed with the Peruvian State a request for direct treatment, whereby it required the payment of the VCN in favor of GSP. On October 18, 2019, the Company filed with ICSID a request for arbitration. On December 27, 2019, the Company withdrew from the arbitration in compliance with the preliminary agreement of effective collaboration signed with the Public Prosecutor’s Office and the Ad hoc Prosecutor’s Office on the same date (Note 1). The withdrawal of the request for arbitration before ICSID does not imply the loss of the Company’s collection rights against GSP, nor does it restrict, limit or obstruct GSP’s ability to exercise its rights against the State.

The Company and its internal and external legal advisors consider that the payment owed by the State to GSP for the NCV of the concession assets is not within the scope of the withholding provided for in Law 30737, since such payment does not include a net profit margin and does not correspond to the sale of assets.

GSP’s Insolvency Proceedings

On December 4, 2017, GSP entered into bankruptcy proceedings before the Peruvian National Institute for the Defense of Competition and Protection of Intellectual Property (“INDECOPI”). Aenza recorded the claim for accounts receivable of US$ 0.4 million and US$ 169.3 million, the latter held in trust in favor of the Company’s creditors. As of the date of this report, GSP is in the process of liquidation and Aenza is chairing the Board of Creditors. The approval of the Liquidation Agreement, which provides the framework for the liquidator’s work, is still pending.

As of December 31, 2022, the present value of accounts receivable from GSP is US$81.1 million, equivalent to S/ 322.6 million (as of December 31, 2021 it was US$ 88.6 million, equivalent to S/320 million) and maintains an accumulated impairment of US$82.8 million (S/329 million). The Company’s management maintains the recovery estimate at 8 years. However, it has updated the discount rate used in its estimates from 1.6% to 2.73%, resulting in a loss from discount restatement under amortized cost of US$7.5 million (S/29.8 million).

ii.

Concesionaria Chavimochic S.A.C.

In May 2014, Concesionaria Chavimochic S.A.C. (hereinafter, the “Concessionaire”) - in which Aenza has a 26.5% interest, entered into a Concession Contract (hereinafter, the “Concession Contract”) with the Peruvian State for the design, construction, operation and maintenance of the major hydraulic works of the Chavimochic Project (hereinafter, the “Project”). The construction of the Project started in 2015, with a concession term of 25 years and an investment amount of approximately US$647 million.

Pursuant to the Concession Contract, the works of the third stage of the Project were structured in two phases. To date, the works of the first phase (Palo Redondo Dam) are 70% complete. However, since the beginning of 2017, the early termination procedure of the Concession Contract was initiated due to contractual breach by the Grantor, having suspended all activities in December 2017. Not having reached an agreement, the Concessionaire initiated an arbitration process before the United Nations International Commercial Law Commission (CNUDI by its acronym in Spanish).

On October 4, 2022, the Arbitral Award notified the parties with the award, which provided for the early termination of the Concession Contract and ordered, among others, that the Grantor pay the Concessionaire US$25.3 million as a consequence of its failure to provide the Project Control Delivery and, the execution of 70% of the Performance Bond or the payment of US$25 million for the Concessionaire’s failure to obtain financial closure.

Despite the Concessionaire’s requests for exclusion and integration of the award, the Tribunal did not issue a decision within the deadline, and the award was consented to.

- 24 -

14.

INVESTMENT PROPERTY, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS

The movement in investment property, property, plant and equipment, intangible assets and right-of-use assets accounts for the year ended December 31, 2021 and 2022, are as follows:

				Property,
	Investment			plant and			Intangibles			Right-of-use
	property			equipment			assets			assets
	(a)			(a)			(b)			(a)

Net cost as of January 1, 2021		26,073			405,469			791,990			64,518
Additions		152			38,191			67,741			13,931
Deconsolidation, net		-			(7,935	)		(751	)		(6,632	)
Reclassifications and disposals		41,150			(50,839	)		(2,080	)		-
Conversion adjustments		(48	)		(5,252	)		(6,997	)		(401	)
Deductions for sale of assets		-			(5,684	)		-			-
Depreciation, amortization		(4,316	)		(70,780	)		(106,512	)		(23,699	)
Net cost as of December 31, 2021		63,011			303,170			743,391			47,717

Net cost as oft January 1, 2022		63,011			303,170			743,391			47,717
Additions		52			64,696			165,157			21,567
Reclassifications and disposals		1,291			(15,778	)		(3,164	)		(256	)
Conversion adjustments		-			(6,389	)		(16,013	)		(112	)
Deductions for sale of assets		-			(7,385	)		-			-
Depreciation, amortization		(3,937	)		(52,342	)		(102,035	)		(18,709	)
Net cost as of December 31, 2022		60,417			285,972			787,336			50,207

(a)

Investment property, property, plant and equipment and right-of-use assets

As of December 31, 2022, additions in property, plant and equipment, mainly correspond to energy segment, due to work in progress, machinery, buildings, other equipment, furniture and fixtures and vehicles in S/49.9 million. Additionally, additions in engineering and construction segment, for machinery, other equipment for S/8 million; additions in real estate segment, for work in progress, machinery and other equipment for S/3.4 million and additions in infrastructure segment, for buildings, machinery, furniture and fixtures and other equipment for S/3.3 million (As of December 31, 2021, correspond mainly to additions in engineering and construction, for machinery, other equipment, vehicles, furniture and fixture and buildings for a total of S/20.2 million, as well as additions in energy segment, for works in progress, replacement units, machinery, furniture and fixture, land and buildings in S/16.8 million).

During the last quarter of 2021, the net value corresponding to the property located at Av Paseo de la Republica 4675 has been reclassified to Investment Properties due to management’s decision to lease the building to third parties.

As of December 31, 2022, additions to right-of-use assets mainly correspond to lease agreements in energy segment, for the acquisition of real estate, vehicles, machinery, and equipment for a total of S/13.4 million; and additions in infrastructure segment for vehicles for S/4.1 million (as of December 31, 2021, mainly correspond to additions in infrastructure segment for vehicles for a total of S/3.4 million).

- 25 -

For the year ended December 31, 2021 and 2022, depreciation of property, plant and equipment, investment property and right-of-use assets is presented in the consolidated statement of income as follows:

	2021			2022

Cost of sale of goods and services (Note 21)		82,063			72,421
Administrative expenses (Note 21)		5,425			2,567
Depreciation from discontinued operations		11,307			-
Total depreciation		98,795			74,988
(-) Depreciation related to investment property (Note 14)		(4,316	)		(3,937	)
(-) Depreciation related to right-of-use assets (Note 14)		(23,699	)		(18,709	)
Total depreciation of property, plant and equipment		70,780			52,342

(b)

Intangible assets

As of December 31, 2022, additions mainly correspond to energy segment due to investments in the preparation of wells and other assets for S/148.1 million; additions to engineering and construction segment due to investment in software and development expenses for S/9.8 million and additions to infrastructure segment due to concessions and licenses for S/7 million; (as of December 31, 2021, additions mainly correspond to energy segment due to investments in the preparation of wells for S/51.3 million; additions to engineering and construction segment due to investment in software and development expenses for S/8.5 million; and additions to infrastructure segment due to concessions and licenses for S/6.2 million).

For the year ended December 31, 2021 and 2022, the breakdown of intangible amortization included in the consolidated statement of income is as follows:

	2021		2022
Cost of sale of goods and services (Note 21)		101,578		99,210
Administrative expenses (Note 21)		3,642		2,825
Amortization from discontinued operations		1,292		-
Total amortization		106,512		102,035

Goodwill

Management reviews businesses results based on the type of economic activity developed. The cash-generating units are distributed in the following segments:

	2021		2022
Engineering and construction		36,345		28,741
Electromechanical		20,735		20,736
		57,080		49,477

- 26 -

15.

BORROWINGS

As of December 31, this caption comprises the following:

	Total				Current				Non-current
	2021		2022		2021		2022		2021		2022

Bank loans (a)		343,679		657,223		217,935		551,823		125,744		105,400
Other financial entities (b)		165,878		162,750		3,746		8,725		162,132		154,025
Lease liability for right-of-use asset		60,507		59,085		14,541		12,879		45,966		46,206
Finance leases		9,836		835		5,118		835		4,718		-
		579,900		879,893		241,340		574,262		338,560		305,631

(a)

Bank loans

As of December 31, 2021 and 2022, this item comprises bank loans in local and foreign currencies for working capital purposes. These obligations accrue fixed interest rates which fluctuate between 0.5% and 13.5% in 2022 (between 0.9% and 11% in 2021).

	Interest rate	Date of maturity	2021		2022

AENZA S.A.A. (i)	Term SOFR 3M + from 6.26% to 8.51%	2023		-		463,773
Unna Energia S.A. (ii)	6.04% / 7.68%	2027		143,986		126,064
Viva Negocio Inmobiliario S.A. (iii)	7.00% / 11.35%	2024		65,262		51,314
Morelco S.A.S. (iv)	9.95% / 10.93%	2023		-		10,674
Vial y Vives - DSD S.A. (v)	0.52% / 13.54%	2025		22,990		5,398
Cumbra Peru S.A. (vi-vii)	8.00%	2023		111,441		-
				343,679		657,223

AENZA S.A.A. Bridge Loan Agreement

On March 17, 2022, the Company entered into a bridge loan credit agreement for up to US$120 million, with a group of financial entities comprised by Banco BTG Pactual S.A. - Cayman Branch, Banco Santander Peru S.A., HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC, and Natixis, New York Branch. The financing will be repaid over a period of 18 months, in quarterly payments, and will be secured, subject to the fulfillment of certain precedent conditions, by a cash flow trust (first lien), a pledge on our shares in Unna Energia S.A. (first lien), and a trust fund over the shares of Viva Negocio Inmobiliario S.A. (second lien). On April 5, 2022, the Company received the full amount of the financing for US$120 million. The loan bears interest at the following interest rates: (i) for the first and second payment, Term SOFR + 6.26%; (ii) for the third and fourth payment, Term SOFR + 6.76%; (iii) for the fifth payment, Term SOFR + 7.51%; and (iv) for the sixth payment, Term SOFR + 7.51%. As of December 31, 2022, the total amount payable is S/463.8 million, includes principal of S/458.4 million, plus interest and net deferred charges of S/5.4 million. As of December 31, 2022, the Company has complied with the corresponding covenants established in the contract loan.

ii)

Unna Energia S.A. Loan

Terminales del Peru (hereinafter “TP”), a joint operation of the subsidiary Unna Energia S.A., has a medium-term loan agreement with Banco de Credito del Peru (hereinafter “BCP”) up to US$30 million to finance the investments committed and up to US$70 million to finance the additional investments from the operation contract of the North and Center terminals for the period 2015 to 2019, its period of availability is until December 31, 2022, with a maximum exposure limit of US$80 million. These loans are repaid within 8 years. During 2022 additional cash transfer of US$8.5 million (equivalent to S/32.7 million) was requested for the additional investments. As of December 31, 2022, the amount of financing equivalent to the 50% interest held by the subsidiary Unna Energia S.A. amounts to US$26.2 million, equivalent to S/100.2 million (US$27.2 million, equivalent to S/108.7 million, as of December 31, 2021).

- 27 -

In addition, during November 2019, TP signed a loan agreement to finance the additional investments from 2019 to 2023, for a credit line amounting to US$46 million with BCP. The contract confirmed the participation of an assignee, so BD Capital (BDC) acquired 50% of the BCP contractual position through the subscription of the accession contract. As of December 31, 2022, the amount of financing equivalent to the 50% interest held by the subsidiary Unna Energia S.A. amounts to US$7.4 million, equivalent to S/28.1 million (US$9.2 million, equivalent to S/36.8 million, as of December 31, 2021).

As of December 31, 2021, and 2022, TP is in compliance with the ratios established in the contract loan.

iii)

Viva Negocio Inmobiliario S.A. Loan

As of December 31, the balance includes the following:

	Interest rate			Date of maturity		2021		2022

Banco de Credito del Peru		7.00% / 7.94	%		2023		35,679		36,562
Banco Interamericano de Finanzas		11.35	%		2024		18,456		12,636
BBVA Continental		7.94	%		2024		9,742		2,116
Eldo Peru S.A.C.		11.00	%		2022		1,385		-
							65,262		51,314

iv)

Morelco S.A.S. Loan

As of December 31, the balance includes the following:

	Interest rate			Date of maturity		2022

Bancolombia S.A.		10.39	%		2023		4,330
Banco de Bogota		9.95% / 10.93	%		2023		6,344
							10,674

Vial y Vives - DSD S.A. Loan

As of December 31, the balance includes the following:

	Interest rate			Date of maturity		2021		2022

Eurocapital		13.54	%		2025		4,352		3,389
Tanner		5.94	%		2023		6,390		1,077
BCI Asset Management		0.52	%		2023		7,055		473
Finameris Servicios Financieros		1.50	%		2023		978		459
E. Capital S.A.		1.50	%		2022		1,983		-
Capital Express		1.25	%		2022		1,488		-
Finmas S.A.		1.50	%		2022		744		-
							22,990		5,398

- 28 -

vi)

Financial Stability Framework Agreement

In July 2017, the Company and its subsidiaries (Cumbra Peru S.A., Construyendo Pais S.A., Vial y Vives - DSD S.A. and Concesionaria Via Expresa Sur S.A.) signed a Financial Stability Framework Agreement with the following financial entities: Scotiabank Peru S.A., Banco Internacional del Peru S.A.A., BBVA Banco Continental, Banco de Credito del Peru, Citibank del Peru S.A. and Citibank N.A. The objectives of the Financial Stability Framework Agreement were to guarantee Cumbra Peru S.A. a syndicated revolving line for working capital, a non-revolving line of credit to finance repayment commitments subject to performance bonds; guarantee lines of credit for the issuance of the performance bond and undertake to maintain the existing letters of credit issued at the request of Cumbra Peru S.A. As of December 31, 2021, the Company complied with the obligations and covenants established in the Financial Stability Framework Agreement.

On March 29, 2022, S/28.2 million and US$0.3 million corresponding to the total balance of the Financial Stability Framework Agreement were fully paid (as of December 31, 2021, the balance payable was US$7.4 million, equivalent to S/29.5 million).

vii)

Banco Santander Peru S.A. Loan

On December 28, 2020, Tecnicas Reunidas enforced two letters of credit for a total amount of US$23.7 million, which had been issued by Banco Santander Peru S.A. on behalf of our subsidiary Cumbra Peru S.A. as security pursuant to a construction contract. As a result, Cumbra Peru S.A. subscribed a loan with Banco Santander for principal amount of US$23.7 million (equivalent to S/85.9 million). The loan accrued interest at an annual effective interest rate of Libor + 8%. As of December 31, 2021, the debt balance was US$20.2 million, equivalent to S/80.8 million, Cumbra Peru S.A. complied with the covenants under the Loan Agreement with Banco Santander Peru S.A.

In April 2022, Cumbra Peru S.A. paid the entire debt amounting to US$20.2 million.

- 29 -

(b)

Other financial entities

Corresponds to the monetization of Red Vial 5 S.A. dividends, operation carried out on May 29, 2018, for the subscription of an investment contract between the Company and Inversiones Concesiones Vial S.A.C. (“BCI Peru”) - whith the intervention of Fondo de Inversiones BCI NV (“Fondo BCI”) and BCI Management Administradora General de Fondos S.A. (“BCI” Asset Management”) - to monetize future dividends from Red Vial 5 S.A. to the Company. With the signing of this agreement, the Company obligated itself to indirectly transfer its economic rights over 48.8% of the share capital of Red Vial 5 S.A. by transferring its class B shares (equivalent to 48.8% of the capital of Red Vial S.A.) to a vehicle specially constituted for such purposes named Inversiones en Autopistas S.A. The amount of the transaction was US$42.3 million (equivalent to S/138 million) and was completed on June 11, 2018.

Likewise, it has been agreed that the Company will have purchase options on 48.8% of Red Vial 5 S.A.’s economic rights that BCI Peru will maintain through its participation in Inversiones en Autopistas S.A. These options will be subject to certain conditions such as the expiration of different terms, recovery of the investment made with the funds of the BCI Fund (according to different economic calculations) and/or that a change of control occurs.

In 2020, the Company recognized at fair value the liability amounting to US$42.1 million (equivalent to S/152.5 million).

As of December 31, 2022, the balance to be paid amounted to US$42.6 million, equivalent to S/162.8 million (as of December 31, 2021, balance was US$41.5 million, equivalent to S/165.8 million) and includes the effect of the fair value of S/16.6 million (as of December 31, 2021, S/12.4) (Note 23-b.ii). Accrued interest amounted to S/9.3 million (in 2021, S/10 million).

(c)

Fair value of borrowings

As of December 31, the carrying amount and fair value of borrowings are detailed as follows:

	Carrying amount				Fair value
	2021		2022		2021		2022

Bank loans		343,679		657,223		372,270		644,018
Other financial entities		165,878		162,750		165,878		162,750
Lease liability for right-of-use asset		60,507		59,085		66,943		58,719
Finance leases		9,836		835		9,097		776
		579,900		879,893		614,188		866,263

As of December 31, 2022, the fair value is based on cash flows discounted using debt rates between 4.7% and 17.6% (between 3.9% and 10% as of December 31, 2021) and are included as Level 2 in the level of measurement, except for other financial entities which is measured within level 3.

- 30 -

16.

BONDS

As of December 31, this caption comprised the following:

	Total				Current				Non-current
	2021		2022		2021		2022		2021		2022

Tren Urbano de Lima S.A. (a)		626,697		629,956		24,496		31,203		602,201		598,753
Red Vial 5 S.A. (b)		251,933		218,684		36,637		41,343		215,296		177,341
Cumbra Peru S.A. (c)		26,282		21,273		4,896		4,554		21,386		16,719
AENZA S.A.A. (d)		356,010		-		3,809		-		352,201		-
		1,260,922		869,913		69,838		77,100		1,191,084		792,813

(a)

Tren Urbano de Lima S.A.

During February 2015, the subsidiary Tren Urbano de Lima S.A. issue corporate bonds under Regulation S of the United States of America. The issuance was made in VAC soles (adjusted for the Constant Update Value) for an amount of S/629 million. The bonds have a maturity ended in November 2039 and accrue an annual effective interest rate of 4.75% (plus the VAC adjustment), present a risk rating of AA+ (local scale) granted by Apoyo & Asociados Internacionales Clasificadora de Riesgo. As of December 30, 2022, an accumulated amortization amounting to S/126.8 million has been made (S/106.9 million as of December 31, 2021).

As of December 31, 2022, the balance includes VAC adjustments and interest payable for S/143.3 million (S/121.1 million as of December 31, 2021).

The account movement of such corporate bonds for the years ended December 31, 2021 and 2022 is as follows:

	2021			2022

Balance as of January, 1		624,454			626,697
Amortization		(16,376	)		(19,848	)
Accrued interest		49,013			54,918
Interest paid		(30,394	)		(31,811	)
Balance as of December, 31		626,697			629,956

As of December 31, 2021, and 2022, Tren Urbano de Lima S.A. has complied with the corresponding covenants.

As of December 31, 2022, the fair value amounts to S/630.7 million (S/626.8 million, as of December 31, 2021), this is based on discounted cash flows using an annual effective interest rate of 5.9% (cash flows using an annual effective interest rate of 4.9% as of December 31, 2021) and corresponds to level 3 of the fair value hierarchy.

(b)

Red Vial 5 S.A.

Between 2015 and 2016, the subsidiary Red Vial 5 S.A. issued the First Corporate Bond Program on the Lima Stock Exchange for a total S/365 million. Risk rating agencies Apoyo & Asociados Internacionales graded this debt instrument AA+.

The capital raised was used to finance the construction of the second phase of Red Vial No.5 and the financing of VAT arising from a project-related expenses.

- 31 -

The account movement for the years ended December 31, 2021, and 2022 is as follows:

	2021			2022

Balance as of January, 1		280,848			251,933
Amortization		(28,836	)		(33,085	)
Accrued interest		22,315			19,744
Interest paid		(22,394	)		(19,908	)
Balance as of December, 31		251,933			218,684

As of December 31, 2021, and 2022, Red Vial 5 S.A. has complied with the covenants.

As of December 31, 2022, the fair value amounts to S/224.8 million (as of December 31, 2021, S/260 million), is based on discounted cash flows using an annual effective interest rate 8.1% (8.1% as of December 31, 2021) and is within level 2 of the fair value hierarchy.

(c)

Cumbra Peru S.A.

At the beginning of 2020, the subsidiary Cumbra Peru S.A. prepared the First Private Bond Program, up to a maximum amount of US$8 million.

In the first quarter of the year 2020, bonds issued amounts to US$7.8 million (equivalent to S/25.9 million) under the debt swap modality, related to its outstanding trade accounts.

The bonds mature in December 2027 and bear an annual effective interest rate of 8.5%, payment is semi-annual and have a risk rating of B-, granted by the rating company Moody’s Peru. As of December 30, 2022, the balance includes accrued interest payable for US$0.2 million, equivalent to S/0.8 million (US$0.3 million, equivalent to S/1 million, as of December 31, 2021).

The account movement for the years ended December 31, 2021, and 2022 is as follows:

	2021			2022

Balance as of January, 1		27,457			26,282
Amortization		(3,687	)		(3,812	)
Exchange difference		2,561			(1,030	)
Accrued interest		2,219			1,858
Interest paid		(2,268	)		(2,025	)
Balance as of December, 31		26,282			21,273

As of December 31, 2022, the fair value amounts to S/19.7 million (S/27.1 million as of December 31, 2021), is based on discounted cash flows using a rate of 11.4% (7.4% as of December 31, 2021) and is within level 3 of the fair value hierarchy.

(d)

AENZA S.A.A.

On August 13, 2021, AENZA S.A.A. issued bonds convertible (hereinafter, the “Bonds”) into common shares with voting rights. The total amount of the issue was US$89.9 million, issuing 89,970 bonds, each with a nominal value of US$ 1,000.

The placement of these bonds was executed locally and were made available to investors only in Peru pursuant to the provisions of the applicable current Peruvian legislation. The bonds maturity date was February 2024, bear an annual effective interest rate of 8%, and were payable on a quarterly basis.

- 32 -

Pursuant to the terms and conditions of the convertible bonds, issued, these may be converted into shares as of the sixth months from the date of issuance, according to the following procedure: 1) the conversion day was the last business day of each month; 2) the conversion may be totally or partially; 3) the conversion notice must be sent to the Bondholders’ Representative no later than 5 business days prior to the conversion date; and 4) the conversion price would be the minimum between (i) US$0.33 (Zero and 33/100 United States Dollars) per Share, and (ii) 80% of the average price of the transactions occurring thirty (30) days prior to the Conversion Date, weighted by the volume of each transaction. The conversion will be made by dividing the current nominal value of each bond by the conversion price.

As of December 31, 2021, the debt balance net of costs incurred amounted to US$89.9 million equivalent to S/356 million. Thereafter the Corporation converted entirely all the bonds into common shares in two tranches, first on February 28, 2022, 11,000 bonds and secondly on March 31, 2022, 78,970 bonds(see, Note 20); due the conversion, the balance of the debt was fully paid.

17.

TRADE ACCOUNTS PAYABLE

As of December 31, this caption is comprised by the following:

	2021		2022

Invoices payable		506,798		523,175
Cost provision (a)		468,360		506,726
Notes payable		5,609		5,390
		980,767		1,035,291

(a)

The cost provision include the following:

Goods and services received not invoiced amounting to S/385.6 million for the engineering and construction segment, S/47.6 million for the infrastructure segment, S/37 million for the energy segment, S/19 million for the real estate and S/12.8 million for operations of the parent company (S/296.6 million, S/42.3 million, S/24.2 million, S/20.6 million and S/16 million, respectively, as of December 31, 2021).

ii)

Provision for estimated contract costs by stage of completion related mainly to projects of the engineering and construction segment for S/68.6 million, as of December 31, 2021. See explanation of the change in the methodology for revenue and cost recognition in Note 10.

- 33 -

18.

OTHER ACCOUNTS PAYABLE

As of December 31, this caption is comprised by the following:

	Total				Current				Non-current
	2021		2022		2021		2022		2021		2022

Advances received from customers (a)		322,680		365,730		315,644		350,194		7,036		15,536
Other taxes payable		124,004		166,547		112,737		138,535		11,267		28,012
Salaries and other payable to personnel		126,466		99,225		126,466		99,225		-		-
Arbitration payable		58,502		73,348		58,502		34,560		-		38,788
Consorcio Ductos del Sur - payable (b)		77,665		25,652		29,242		12,921		48,423		12,731
Guarantee deposits		26,017		18,552		26,017		18,552		-		-
Share purchase agreement - Inversiones Sur		15,992		15,280		-		15,280		15,992		-
Acquisition of additional non-controlling interest		25,253		9,344		25,253		9,344		-		-
Royalties payable		5,668		9,303		5,668		9,303		-		-
Put option liability on Morelco acquisition		27,986		4,905		27,986		4,905		-		-
Other accounts payable		37,117		34,441		27,466		27,191		9,651		7,250
		847,350		822,327		754,981		720,010		92,369		102,317

(a)

Advances received from customers mainly correspond to construction projects, and are applied to progress billings, in accordance with contract terms. The increase is mainly due to advances received from the client Lima Airport Partners S.R.L. for the Intipunku consortium in S/65 million and advances received from Buenaventura San Gabriel Project in S/33 million, and the decrease corresponds to the creditor Celulosa Arauco for the Evaporadores Mapa project S/51 million. respectively.

	Total				Current				Non-current
	2021		2022		2021		2022		2021		2022

Customer advances from Consortiums		27,568		100,650		27,568		100,650		-		-
Pebbles Quebrada Blanca Phase 2 Project		120,642		91,107		120,642		91,107		-		-
Customer advances for real estate projects		80,188		85,741		80,188		85,741		-		-
Special National Transportation Infrastructure Project		19,582		33,879		12,765		32,995		6,817		884
San Gabriel - Buenaventura Project		-		33,206		-		18,743		-		14,463
Quellaveco Project		10,841		5,984		10,841		5,984		-		-
Evaporadores Modernización y ampliación de la Planta Arauco Project (MAPA)		52,063		1,531		52,063		1,531		-		-
Gasoducto Piura Construction		5,745		-		5,745		-		-		-
Others		6,051		13,632		5,832		13,443		219		189
		322,680		365,730		315,644		350,194		7,036		15,536

(b)

The balance of other accounts payable from Consorcio Constructor Ductos del Sur mainly corresponds to payment obligations to vendors and main subcontractors for S/25.6 million (S/77.6 million as of December 31, 2021) arisen by the subsidiary Cumbra Peru S.A. due to the termination of Gasoducto Sur Peruano S.A. operations (see, Note 11).

The fair value of current accounts is approximate to their book value due to short-term maturities. The non-current part mainly includes non-financial liabilities such as advances received from customers; the remaining balance is not significant in the financial statements.

19.

OTHER PROVISIONS

As of December 31, this caption is comprised by the following:

	Total				Current				Non-current
	2021		2022		2021		2022		2021		2022

Legal claims (a)		364,385		580,216		117,520		86,751		246,865		493,465
Tax claims		37,466		53,577		16,776		33,127		20,690		20,450
Provision for closure (b)		82,475		68,160		20,533		11,851		61,942		56,309
		484,326		701,953		154,829		131,729		329,497		570,224

- 34 -

(a)

Legal contingencies are comprised by the following:

Civil compensation to Peruvian Government

Corresponds to the legal contingency estimated by management for exposure of the Company to a probable compensation in relation to their participation as minority partners in certain entities that developed infrastructure projects in Peru with companies belonging to the Odebrecht group and projects related to “Club de la Construccion”. As indicated in Note 1-c) on September 15, 2022, the collaboration and benefits agreement is signed, through which AENZA recognizes it was utilized by certain former executives to commit illicit acts until 2016, and commits to pay a civil penalty to the Peruvian State of S/488.9 million. The civil penalty will be made within a term of 12 years, under a legal interest rate in Soles and US Dollars (3.03% and 1.15% effective interest annual rate as of September 30, 2022, respectively); in addition, the Company compromise to establish a package of guarantees after the court approval i) a trust that includes shares issued by a subsidiary of AENZA; ii) a mortgage on a real state asset and iii) guaranty account with funds equivalent to the annual fees corresponding to the following year. Among other conditions, the Agreement includes a restriction for Aenza and the subsidiaries Cumbra Peru S.A., and Unna Transporte S.A. to participate in public construction and road maintenance contracts with the Peruvian State for two (2) years, counted from court’s approval. As of December 31, 2022, the Company recognized in its financial statements the integrity of the liability associated with the Agreement for S/488.9 million (S/333.3 million and US$40.7 million), in the caption “Other Provisions” within the consolidated statement of financial position, affecting results for the period, equivalent to the remaining portion of the total imputed, for approximately S/258.3 million in the caption “Other expenses” within the consolidated income statement. (As of December 31, 2021 was S/164.6 million and US$18.9 million equivalent to S/240.1 million).

Administrative process INDECOPI

On March 9, 2021, Cumbra Peru S.A. was notified with a Final instruction Report prepared by the Technical Secretary of the National Institute of Competence, Protection and Intellectual Property - INDECOPI (by its acronym in Spanish and INDECOPI hereinafter) in relation to the administrative sanction process against 33 construction companies and other 26 of their executives for allegedly arranging a coordination system to illegally distribute several contract tenders conducted by Provias Nacional and other govenmental entities. On November 15, 2021 INDECOPI’s – Free Competence Defense Commission, through Resolution N°080-021-CLC-INDECOPI, ruled in favor to sanction the companies and their executives, included Cumbra Peru S.A. On December 9, 2021, Cumbra Peru filed an appeal against such ruling, suspending its application including the payment of imposed fines and compliance of corrective measures dictated. The Company and its legal advisors estimated a provision amounting to S/52.4 million that was recognized as of December 31, 2022 (S/52.6 million as of December 31, 2021).

ii)

On February 7, 2022, Cumbra Peru S.A. and Unna Transporte S.A.C. were notified by INDECOPI under File 003-2020/CLC-IP, issued on Resolution 038-2021/DLC-INDECOPI of December 28, 2021, through which initiate a sanctioning administrative procedure for the alleged execution of a horizontal collusive practice in the form of concerted distribution of suppliers in the contracting market of construction workers industry across nation-wide, during the period comprehended between years 2011 to 2017.

On April 7, 2022, Cumbra Peru S.A. and Unna Transporte S.A.C. submitted a proposal for a cease and desist agreement for the early termination of the administrative sanctioning procedure, in which (i) they acknowledged the alleged conduct, (ii) they committed to maintain in the years 2022, 2023 and 2024 a program of compliance with free competition rules, and (iii) they agreed to pay a compensation amounting to S/2.7 million in two installments (one after 60 days and the second after 12 months). By Resolution No. 054-2022/CLC-INDECOPI dated August 19, 2022, the Commission for the Defense of Free Competition of INDECOPI approved the proposed cease and desist commitment and concluded the sanctioning procedure. As of December 31, 2022, the Company and its legal advisors estimated a provision amounting to S/1.4 million recognized as of December 31, 2022 (S/4.8 million as of December 31, 2021).

- 35 -

Shareholder class action lawsuits in the Eastern District Court of New York, United States of America

During the first quarter of 2017 two collective demands were filed against the Company, and certain former employees in the Eastern District of New York attending Securities Act legislation.

On July 2, 2020, the Company signed the definitive settlement agreement with plaintiffs’ counsel, whereby the parties agree to terminate the collective demand subject to Court’s approval and payment of the settlement amount by the Company. The amount settled for the termination of the class action is equivalent to US$20 million. On September 14, 2021, the settlement agreement was approved by the Eastern District Court of New York. During 2020, a payment of US$0.3 million (equivalent to S/1.1 million) and US$5 million was made and covered by the Company and by the professional liability assurance policy in accordance with the agreement signed with the insurer, respectively. The term of the agreement stablishes that the remaining US$14.7 million, plus 5% annual effective interest rate and 8% after June 30, 2021, must be paid by the Company before September 30, 2021.

On June 30, 2021, a first amendment to the agreement was signed, in which is stablished a payment of US$0.6 million (equivalent to S/2.2 million), amortization of the outstanding balance on September 30, 2021, and an annual effective interest rate of 8%. On October 1, 2021, the second amendment to the agreement was signed, whereby US$5.5 million (equivalent to S/22.7 million) was paid plus accrued interest of US$0.9 million (equivalent to S/3.6 million), established as a new expiration date June 30, 2022, plus accrued interest per year at an annual effective interest rate of 9% was set.

As of December 31, 2021, the Company maintains a provision of US$8.6 million, equivalent to S/34.4 million, plus interests. This provision of S/33.3 million was full paid on April 8, 2022.

(b)

Provision for closure corresponds mainly to:

Provisions for closure of wells of Unna Energia S.A. for S/56.5 million and contractual compliance with Petroperu for S/3.3 million (as of December 31, 2021, S/71.1 million and S/3.4 million, respectively);

ii)

Provision for costs associated of the subsidiary Red Vial 5 S.A., related to the closing of the concession contract and the process of claiming the tariff guarantee for toll suspension for S/5.6 million (as of December 31, 2021, S/5.1 million).

- 36 -

The account movement for the year ended as of December 31, 2021 and 2022 are as follows:

	Legal			Tax			Provision
	claims			claims			for closure			Total

As of January 1, 2021		326,868			8,176			52,949			387,993
Additions		59,109			30,505			10,815			100,429
Present value		19,627			-			9,780			29,407
Reversals of provisions		(13,027	)		-			(2,957	)		(15,984	)
Transfers		466			(299	)		716			883
Reclasification and compensation		(11,876	)		-			3,335			(8,541	)
Desconsolidation of subsidiary		(1,657	)		-			-			(1,657	)
Payments		(26,863	)		(916	)		(185	)		(27,964	)
Translation adjustments / Exchange difference		11,738			-			8,022			19,760
As of December 31, 2021		364,385			37,466			82,475			484,326

As of January 1, 2022		364,385			37,466			82,475			484,326
Additions		282,451			16,607			-			299,058
Present value		1,042			-			(2,496	)		(1,454	)
Reversals of provisions		(5,807	)		(434	)		(9,694	)		(15,935	)
Reclasification		(5,587	)		(62	)		-			(5,649	)
Payments		(40,253	)		-			(747	)		(41,000	)
Translation adjustments / Exchange difference		(16,015	)		-			(1,378	)		(17,393	)
As of December 31, 2022		580,216			53,577			68,160			701,953

20.

CAPITAL

On February 28, 2022, according with terms and conditions of the convertible bond, the holders of 11,000 Convertible Bonds, each with a nominal value of US$1,000 each and for a principal amount equivalent to US$11 million, communicated the decision to execute their conversion rights. As consequence, AENZA issued provisional certificates for 37,801,073 new common shares, with a nominal value of S/1.00 each, with voting rights, and they are fully subscribed and paid. Therefore, the Company increased its capital stock from S/871,917,855 to S/ 909,718,928.

Additionally, on March 31, 2022, holders of 78,970 convertible bonds, each with a nominal value of US$1,000 each and for a principal amount equivalent to US$78.9 million, communicated their decision to execute their conversion rights. As consequence AENZA converted the bonds, as well as paid the accrued interest to the bondholders who have exercised their conversion rights. The Company issued provisional certificates for 287,261,051 new common shares. Therefore, the capital stock of the Company has increased from S/909,718,928 to S/1,196,979,979. After this last operation, the convertible bonds have been fully paid (see, Note 16-d).

As of December 31, 2022, the total capital stock of the Company corresponds a total of 130,025,625 shares represented in ADS, equivalent to 26,005,125 ADSs at a rate of 5 shares per ADS.

As of December 31, 2021, the total capital stock of the Company corresponds a total of 136,637,740 shares represented in ADS, equivalent to 27,327,548 ADSs at a rate of 5 shares per ADS.

- 37 -

21.

EXPENSES BY NATURE

For the year ended December 31, 2021, and 2022, this caption comprises the following:

	Cost of goods and services			Administrative expenses		Total
2021
Salaries, wages and fringe benefits		1,297,352			97,682		1,395,034
Services provided by third-parties		1,118,929			56,462		1,175,391
Purchase of goods		705,000			43		705,043
Other management charges		222,648			16,203		238,851
Depreciation (Note 14.a)		82,063			5,425		87,488
Amortization (Note 14.b)		101,578			3,642		105,220
Impairment of accounts receivable		9,420			2		9,422
Taxes		5,691			154		5,845
Impairment of property, plant and equipment		5,679			-		5,679
Impairment of Inventory		2,984			-		2,984
		3,551,344			179,613		3,730,957

2022
Salaries, wages and fringe benefits		1,254,006			97,914		1,351,920
Services provided by third-parties		1,364,793			42,158		1,406,951
Purchase of goods		633,963			-		633,963
Other management charges		323,775			9,580		333,355
Depreciation (Note 14.a)		72,421			2,567		74,988
Amortization (Note 14.b)		99,210			2,825		102,035
Impairment of accounts receivable		174,083			24		174,107
Taxes		16,479			261		16,740
Impairment of property, plant and equipment		931			7,269		8,200
Recovery of inventory		(1,972	)		-		(1,972	)
		3,937,689			162,598		4,100,287

22.

OTHER INCOME AND EXPENSES

For the year ended December 31, 2021, and 2022, this item comprises:

	2021			2022
Other income:
Sale of fixed assets		9,618			11,274
Accounts payable reversal		-			5,244
Valuation of well retairment provision		-			2,155
Change in contract of the call option		70,322			3,706
Recovery of provisions and impairments		6,070			2,067
Penalty income		1,883			4,715
Insurance compensation		3,728			209
Others		5,593			7,678
		97,214			37,048

		2021			2022
Other expenses:
Civil penalty recognized from the Agreement (Note 19.a)		-			258,267
Administrative sanctions and legal processes		61,252			18,265
Net cost of fixed assets disposal		7,794			8,137
Asset impairment		20,371			26,211
Disposal of property, plant and equipment		3,764			4,137
Renegotiation of contract with suppliers		176			5,266
Valuation of well abandonment		7,211			-
Others		1,123			4,480
		101,691			324,763
Other expenses, net		(4,477	)		(287,715	)

- 38 -

23.

FINANCIAL INCOME AND EXPENSES

For the year ended December 31, 2021, and 2022, this item comprises:

	2021			2022

Financial income:
Interest on short-term bank deposits		959			12,894
Profit for present value of financial asset or financial liability (a)		3,127			10,400
Business interests		438			856
Interest on loans to third parties		442			127
Others		807			1,577
		5,773			25,854

Financial expenses:
Loss for present value of financial asset or financial liability (b)		66,159			99,313
Interest expense on:
- Bank loans		56,534			64,947
- Bonds		36,830			34,844
- Loans from third parties		12,642			6,345
- Financial lease right-of-use		3,982			4,505
- Financial lease		862			474
Commissions and collaterals		23,034			22,389
Interests from Tax Administration		14,236			16,326
Exchange difference loss, net		47,211			269
Factoring expenses		93			1,973
Other financial expenses		2,235			3,801
Less capitalized interest		(1,244	)		(937	)
		262,574			254,249

- 39 -

(a)

Mainly corresponds to the adjustment in the Subsidiary Viva Negocio Inmobiliario S.A. for the present value on the account receivable to Ministerio de Vivienda, Construccion y Saneamiento from the Ancon Project for S/5.8 million at a discount rate of 7.99%.

(b)

Mainly corresponds to:

Adjustment of present value of the account receivable from Gasoducto Sur Peruano S.A. for S/72.2 million, due to the variation in the discount rate, which increased from 2.73% to 5.86% (S/32.8 million due to an increase in the rate from 1.65% to 2.73% as of December 31, 2021).

ii)

Adjustment on the fair value of the loan of BCI at Inversiones en Autopistas S.A. for S/16.6 million, due to the variation in the discount rate, which increased from 8.39% to 9.97% (S/12.4 million due to an increase in the rate from 6.45% to 8.39% as of December 31, 2021).

iii)

Present value of the Inversiones Majes S.A. account receivable at Viva Negocio Inmobiliario S.A. for S/5 million at a discount rate of 8%.

24.

CONTINGENCIES, COMMITTMENTS AND GUARANTEES

Under Management’s opinion and of its legal advisors, provisions recognized mainly for civil lawsuits, labor disputes, tax claims, contentious and administrative processes are sufficient to cover the results of these probable contingencies (Note 19), and the balance of possible contingencies is S/390.1 million (S/387.8 million as of December 31, 2021).

Tax contingencies

The Company considers that the maximum exposure for tax contingencies of the Corporate amounts to S/311 million (S/303.1 million as of December 2021), as described below.

Appeal process at the Tax Court for S/256 million (Aenza S.A.A. S/124.1 million for income tax for the years 2013, 2014 and 2015; Cumbra Peru S.A. S/106.4 million for income tax for the years 2012 and 2014; Consorcio Constructor Ductos del Sur S/10.8 million for income tax for the year 2014; Consorcio Constructor Chavimochic S/9 million for income tax for the years 2014, 2015 and 2016; Cumbra Ingenieria S.A. S/3.3 million for income tax for the years 2013 and 2016; Viva Negocio Inmobiliario S.A. S/1.6 million for income tax for the year 2009; and Unna Transporte S.A. S/0.8 million for income tax and VAT of the year 2015).

- 40 -

ii)

Claim process at SUNAT for S/55 million (Aenza S.A.A.S/35.3 million for income tax for year 2016, Cumbra Ingenieria S.A. S/18.4 million for income tax for the years 2014 and 2015, Cumbra Peru S.A.S/1.3 million for income tax for the year 2016).

As of December 31, 2021, and 2022, according to Management’s opinion all the afore mentioned processes will be favorable considering their characteristics and the evaluation of their legal advisors.

Other contingencies

The Company considers that the maximum exposure for other contingencies of the corporate amounts to S/79.1 million (S/84.7 million as of December 31, 2021), as detailed:

Civil lawsuits, mainly related to indemnities for damages, contract terminations and obligations to pay a sum of money amounting to S/26.9 million (Cumbra Peru S.A. for S/20.1 million, Cumbra Ingenieria S.A. for S/3.8 million, Unna Transporte S.A.C. for S/1.9 million, Red Vial 5 S.A. for S/0.6 million, Viva Negocio Inmobiliario S.A. for S/0.3 million and Morelco S.A.S. for S/0.2 million).

ii)

Labor claim processes amounting to approximately S/22.2 million (Morelco S.A.S for S/19 million, Unna Energia S.A. for S/1.6 million, Unna Transporte S.A.C for S/1.2 million, Cumbra Peru S.A. for S/0.3 million and Viva Negocio Inmobiliario S.A. for S/0.1 million).

iii)

Contentious administrative processes amounting to S/15.3 million (Unna Energia S.A. for S/12.8 million, and Morelco S.A.S. for S/2.5 million).

iv)

Administrative processes amounting to S/14.7 million (Tren Urbano de Lima S.A. for S/4.8 million, AENZA S.A.A. for S/3.5 million, Cumbra Perú S.A. for S/6 million and Viva Negocio Inmobiliario S.A. for S/0.4 million).

Letters bonds and guarantees

The Corporation maintains guarantees and letters of credit in force in several financial entities guaranteeing operations for US$574.6 million (US$471.9 million, as of December 31, 2021).

25.

DIVIDENDS

In compliance with certain covenants applicable as of to this date produced by agreements subscribed by the corporation, the Company will not pay, except for transactions with non-controlling interests. Certain of our debt or other contractual obligations may restrict our ability to pay dividends in the future. Additionally, the Collaboration and Benefits Agreement does not allow the distribution of dividends until 40% of the total amount of the committed civil penalty described in Note 1 c) has been paid.

For the year ended December 31, 2022, the Corporation’s subsidiaries have paid dividends to its non-controlling interests of S/19.8 million (for year ended on December 31, 2021, the subsidiaries paid S/43 million).

- 41 -

26.

LOSS PER SHARE

The basic loss per common share has been calculated by dividing the loss of the year attributable to the Corporation’s common shareholders by the weighted average of the number of common shares outstanding during that year. No diluted loss per common share has been calculated because there is no potential diluent common or investment shares (i.e., financial instruments or agreements that entitle to obtain common or investment shares); therefore, it is the same as the loss per basic share.

For the year ended December 30, and 2022, the basic loss per common share is as follows:

		2021			2022

Loss attributable to owners of the Company during the year			(153,210	)		(455,244	)
Weighted average number of shares in issue at S/1.00 each, from January 1 to December 31			871,917,855			1,144,435,690

Basic loss per share (in S/)	(*)		(0.176	)		(0.398	)

Loss from continuing operations attributable to owners of the Company during the year			(126,436	)		(455,244	)
Weighted average number of shares in issue at S/1.00 each, from January 1 to December 31			871,917,855			1,144,435,690

Basic loss per share (in S/)	(*)		(0.145	)		(0.398	)

(*)

The Corporation does not have common shares with dilutive effects on December 31, 2021, and 2022.

27.

EVENTS AFTER THE DATE OF THE STATEMENT OF FINANCIAL POSITION

Between December 31, 2022 and the date of approval of the condensed interim consolidated financial statements, there have been no subsequent events that may affect the reasonableness of the financial statements issued.

- 42 -

Grana y Montero SAA (NYSE:GRAM)
Historical Stock Chart
Von Apr 2024 bis Mai 2024

Click Here for more Grana y Montero SAA Charts.

Grana y Montero SAA (NYSE:GRAM)
Historical Stock Chart
Von Mai 2023 bis Mai 2024

Marktdaten

News

Werkzeuge

Märkte

Entdecken

Hot Features

Follow Feed

Optionen-Flow

Watchlist

GRAM Grana y Montero SAA

News Aenza S.a.a.

Kürzlich von Ihnen besucht

Unternehmen

Geschäft

Popular

App herunterladen

Trends

Toplisten

Marktdaten

News

Werkzeuge

Märkte

Entdecken

Hot Features

Follow Feed

Optionen-Flow

Watchlist

GRAM Grana y Montero SAA

News Aenza S.a.a.

Kürzlich von Ihnen besucht

Unternehmen

Geschäft

Popular

App herunterladen