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 July 2021

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)

Avenida Paseo de la República 4667, Lima 34,

Surquillo, Lima

Peru

(Address of principal executive offices)

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

Form 20-F ___X___ Form 40-F _______

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

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

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

Yes _______ No ___X___

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

July 23, 2021

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/ LUIS FRANCISCO DIAZ OLIVERO

Name: Luis Francisco Diaz Olivero

Title: Chief Executive Officer

Date: July 23, 2021

AENZA S.A.A AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AT DECEMBER 31, 2020 AND JUNE 30, 2021 (UNAUDITED)

AENZA S.A.A AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AT DECEMBER 31, 2020 AND JUNE 30, 2021 (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 - 36

S/	=	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)

ASSETS						LIABILITIES AND EQUITY
		As of		As of				As of			As of
		December 31,		June 30,				December 31,			June 30,
	Note	2020		2021			Note	2020			2021

Current assets						Current liabilities
Cash and cash equivalents	8		900,168		826,879	Borrowings	15		452,884			470,459
Trade accounts receivables, net	9		703,167		766,400	Bonds	16		58,446			60,606
Work in progress	10		186,433		279,464	Trade accounts payable	17		1,097,167			1,126,473
Accounts receivable from related parties	11		27,338		28,607	Accounts payable to related parties	11		43,818			44,184
Other accounts receivable	12		433,531		426,331	Current income tax			34,494			19,005
Inventories, net			552,000		554,896	Other accounts payable	18		718,406			890,169
Prepaid expenses			22,972		26,239	Other provisions	19		92,757			103,326
Total current assets			2,825,609		2,908,816	Total current liabilities			2,497,972			2,714,222

Non-current assets						Non-current liabilities
Trade accounts receivable, net	9		730,666		751,466	Borrowings	15		445,436			406,402
Accounts receivable from related parties	11		620,071		619,462	Bonds	16		874,313			858,265
Prepaid expenses			22,264		24,681	Trade accounts payable	17		40,502			38,036
Other accounts receivable	12		328,223		347,147	Other accounts payable	18		183,232			151,257
Investments in associates and joint ventures	13		35,516		35,844	Accounts payable to related parties	11		36,297			37,577
Investment property			26,073		23,514	Other provisions	19		336,609			354,326
Property, plant and equipment, net	14		405,469		377,651	Deferred income tax liability			102,907			108,741
Intangible assets, net	14		791,990		755,555	Total non-current liabilities			2,019,296			1,954,604
Right-of-use assets, net	14		64,518		56,783	Total liabilities			4,517,268			4,668,826
Deferred income tax asset			262,165		282,426
Total non-current assets			3,286,955		3,274,529	Equity	20
						Capital			871,918			871,918
						Legal reserve			132,011			132,011
						Voluntary reserve			29,974			29,974
						Share Premium			1,131,574			1,131,574
						Other reserves			(169,234	)		(176,450	)
						Retained earnings			(728,637	)		(790,234	)
						Equity attributable to controlling interest in the Company			1,267,606			1,198,793
						Non-controlling interest			327,690			315,726
						Total equity			1,595,296			1,514,519
Total assets			6,112,564		6,183,345	Total liabilities and equity			6,112,564			6,183,345

The accompanying notes on pages 6 to 36 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 period
		ended June 30,
	Note	2020			2021
		(as restated)

Revenues from construction activities			803,701			1,070,058
Revenues from services provided			485,602			559,795
Revenue from real estate and sale of goods			156,235			254,337
			1,445,538			1,884,190

Cost of construction activities			(784,176	)		(1,018,534	)
Cost of services provided			(438,602	)		(473,273	)
Cost of real estate and sale of goods			(124,701	)		(204,287	)
	21		(1,347,479	)		(1,696,094	)
Gross profit			98,059			188,096

Administrative expenses	21		(82,713	)		(95,456	)
Other income and expenses	22		(8,116	)		(2,901	)
Operating profit			7,230			89,739

Financial expenses	23		(79,920	)		(117,840	)
Financial income	23		6,702			2,704
Share of the profit or loss of associates and joint ventures accounted for using the equity method	13		1,519			1,061
Loss before income tax			(64,469	)		(24,336	)
Income tax expense			(6,157	)		(20,474	)
Loss for the period			(70,626	)		(44,810	)

(Loss) profit attributable to:
Owners of the Company			(69,795	)		(61,597	)
Non-controlling interest			(831	)		16,787
			(70,626	)		(44,810	)


Loss per share attributable to owners of the
Company during the period	27		(0.080	)		(0.071	)

The accompanying notes on pages 6 to 36 are an integral part of the consolidated financial statements.

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AENZA S.A.A. AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(All amounts are expressed in thousands of S/ unless otherwise stated)

	For the period
	ended June 30,
	2020			2021


Loss for the period		(70,626	)		(44,810	)
Other comprehensive income:
Items that may be subsequently reclassified to profit or loss
Cash flow hedge, net of tax		(67	)		-
Foreign currency translation adjustment, net of tax		(15,238	)		(8,060	)
Exchange difference from net investment in a foreign operation, net of tax		(127	)		132
Other comprehensive income for the period, net of tax		(15,432	)		(7,928	)
Total comprehensive income for the period		(86,058	)		(52,738	)

Comprehensive income attributable to:
Owners of the Company		(80,791	)		(68,813	)
Non-controlling interest		(5,267	)		16,075
		(86,058	)		(52,738	)

The accompanying notes on pages 6 to 36 are an integral part of the consolidated financial statements.

- 3 -

AENZA S.A.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED JUNE 30, 2020 AND 2021
(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, 2020		871,918		871,918		132,011		29,974		1,132,179		(177,506	)		(510,766	)		1,477,810			398,275			1,876,085
Loss for the period		-		-		-		-		-		-			(69,795	)		(69,795	)		(831	)		(70,626	)
Cash flow hedge		-		-		-		-		-		(64	)		-			(64	)		(3	)		(67	)
Foreign currency translation adjustment		-		-		-		-		-		(10,806	)		-			(10,806	)		(4,432	)		(15,238	)
Exchange difference from net investment in a foreign operation		-		-		-		-		-		(126	)		-			(126	)		(1	)		(127	)
Comprehensive income of the period		-		-		-		-		-		(10,996	)		(69,795	)		(80,791	)		(5,267	)		(86,058	)
Transactions with shareholders:
- Dividend distribution		-		-		-		-		-		-			-			-			(61,684	)		(61,684	)
- Contributions (devolution) of non-controlling shareholders, net		-		-		-		-		-		-			-			-			(10,238	)		(10,238	)
Total transactions with shareholders		-		-		-		-		-		-			-			-			(71,922	)		(71,922	)
Balances as of June 30, 2020		871,918		871,918		132,011		29,974		1,132,179		(188,502	)		(580,561	)		1,397,019			321,086			1,718,105

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 period		-		-		-		-		-		-			(61,597	)		(61,597	)		16,787			(44,810	)
Foreign currency translation adjustment		-		-		-		-		-		(7,348	)		-			(7,348	)		(712	)		(8,060	)
Exchange difference from net investment in a foreign operation		-		-		-		-		-		132			-			132			-			132
Comprehensive income of the period		-		-		-		-		-		(7,216	)		(61,597	)		(68,813	)		16,075			(52,738	)
Transactions with shareholders:
- Dividend distribution		-		-		-		-		-		-			-			-			(11,210	)		(11,210	)
- Contributions (devolution) of non-controlling shareholders, net		-		-		-		-		-		-			-			-			(16,829	)		(16,829	)
Total transactions with shareholders		-		-		-		-		-		-			-			-			(28,039	)		(28,039	)
Balances as of June 30, 2021		871,918		871,918		132,011		29,974		1,131,574		(176,450	)		(790,234	)		1,198,793			315,726			1,514,519

The accompanying notes on pages 6 to 36 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 period
		ended June 30,
	Note	2020			2021
		(as restated)
OPERATING ACTIVITIES
Loss before income tax			(64,469	)		(24,336	)
Adjustments to profit not affecting cash flows from
operating activities:
Depreciation	21		54,180			51,114
Amortization	21		50,655			48,555
Impairment of accounts receivable and other accounts receivable			1,654			542
Reversal of impairment of inventories			(1,071	)		-
Debt condonation			(183	)		-
Reversal of property, plant and equipment			(258	)		(1,323	)
Change in the fair value of the liability for put option			636			-
Other provisions			13,890			18,392
Financial expense,net			116,612			125,432
Impairment of work in progress			13,487			-
Share of the profit and loss of associates and joint ventures accounted for using the equity method	13		(1,519	)		(1,061	)
Reversal of provisions			(7,420	)		(3,096	)
Disposal of assets			704			1,024
Profit on sale of property, plant and equipment			(186	)		(60	)
(Profit) loss on remeasurement of accounts receivable			(1,379	)		21,415
Net variations in assets and liabilities:
Trade accounts receivable and working in progress			317,970			(175,833	)
Other accounts receivable			42,266			(21,116	)
Other accounts receivable from related parties			(61,254	)		(25,616	)
Inventories			(48,683	)		(2,206	)
Pre-paid expenses and other assets			(7,064	)		(5,684	)
Trade accounts payable			(174,737	)		26,840
Other accounts payable			95,387			122,051
Other accounts payable to related parties			16,032			1,778
Other provisions			(1,525	)		(2,086	)
Interest payment			(68,666	)		(66,699	)
Payments for purchases of intangibles - Concessions			(855	)		(1,490	)
Payment of income tax			(63,648	)		(36,689	)
Net cash provided by operating activities			220,556			49,848

INVESTING ACTIVITIES
Sale of property, plant and equipment			6,710			4,763
Interest received			2,433			1,081
Dividends received			-			753
Payment for purchase of investments properties			(20	)		(93	)
Payments for intangible purchase			(37,981	)		(8,368	)
Payments for property, plant and equipment purchase			(18,842	)		(11,850	)
Net cash applied to investing activities			(47,700	)		(13,714	)

FINANCING ACTIVITIES
Loans received			59,566			53,751
Amortization of loans received			(136,179	)		(116,662	)
Amortization of bonds issued			(16,745	)		(24,078	)
Dividends paid to non-controlling interest			(54,270	)		(11,210	)
Cash received (return of contributions) from non-controlling shareholders			(10,238	)		(16,829	)
Net cash applied to financing activities			(157,866	)		(115,028	)
Net increase (net decrease) in cash			14,990			(78,894	)
Exchange difference			(16,815	)		5,605
Cash and cash equivalents at the beginning of the period			950,701			900,168
Cash and cash equivalents at the end of the period	8		948,876			826,879

NON-CASH TRANSACTIONS:
Capitalization of interests			2,815			856
Acquisition of assets through finance leases			32			58
Acquisition of subsidiary debt			17,440			-
Dividends declared to non-controlling interest			7,414			-
Acquisition of right-of-use assets			7,979			4,060
Acquisition of supplier bonds			25,871			-

The accompanying notes on pages 6 to 36 are an integral part of the consolidated financial statements.

- 5 -

AENZA S.A.A (FORMERLY GRAÑA Y MONTERO S.A.A.) AND SUBSIDIARIES

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2020 AND JUNE 30, 2021 (UNAUDITED)

1.	GENERAL INFORMATION

a)	Incorporation and operations

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

The General Shareholder’s Meeting on November 2, 2020 approved the modification of the Company’s corporate name from Graña y Montero S.A.A. to AENZA S.A.A. which is effective as of February 4, 2021.

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

b)	Authorization for the issue of the financial statements

The condensed interim consolidated financial statements for the period ended June 30, 2021 were authorized by Management and Board of Directors on July 23, 2021.

The consolidated financial statements for the year ended December 31, 2020, have been prepared and issued with authorization of Management and the Board of Directors on March 5, 2021, and were approved on the General Shareholders’ Meeting held on March 31, 2021.

Since the date the financial statements were submitted to our shareholders for their approval, until the date of presentation to the Securities and Exchange Commission of the financial information attached to the annual report 20F, subsequent events with material impact on our results occurred and as a result, and in compliance with International Financial Reporting Standards (IFRS), we have recorded such impacts herein. This was revealed through a relevant information communication on May 17, 2021. The events referred to previously, are related mainly to the considerable progress in the negotiations of the Company’s plea bargain agreement, which allowed us to reassess our estimate of our exposure to the contingencies including within its scope. As a result, the amounts included in our financial statements were restructured.

After the filing of the Form 20-F, the Company signed an “Acta de Acuerdo Preparatorio de Colaboracion y Beneficios” (the “Agreement”), with the “Procuraduria Publica ad Hoc”. who dedicate themselves exclusively to the knowledge of investigations related to Crimes of Corruption of Officials and related incurred by the company Odebrecht and others (the “Prosecutor's Office” and with the ad hoc Public Prosecutor's Office for investigations and processes related to crimes of corruption of officials, money laundering and related assets incurred by the company Odebrecht and others (the "Office of the Attorney General"). Pursuant to the Agreement, the Company assumed an obligation to pay a civil penalty, which is within the estimates included in such financial information. The effects of the Effective Collaboration Agreement will enter into force as of their judicial approval.

The consolidated restructured financial statements for the year ended December 31, 2020 have been prepared and issued with authorization of Management and the Board of Directors on June 9, 2021 to ensure consistency between the information presented to the markets in which the Company’s securities are traded, and were approved on the General Mandatory Shareholder’s Meeting held on July 6, 2021.

- 6 -

c)	Acta de Acuerdo Preparatorio de Colaboración y Beneficios – “The Agreement”

Pursuant to the Agreement executed on May 21, 2021, AENZA S.A.A. 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/321.9 million and US$40.7 million. The civil penalty is subject to (i) a repayment tenor of 12 years, (ii) the legal interest rate in domestic and foreign currency, (iii) a total collateral of S/197 million through a trust that includes shares issued by a subsidiary of AENZA, a mortgage on a real estate asset and debt service guaranty account. Among other conditions, the Agreement includes a restriction to participate in public construction and road maintenance contracts for 2 years. As of June 30, 2021, we registered the present value of the amounts described before, which amount to S/154 million and US$17.2 million (totaling S/220.5 million).

The civil penalty covers the total contingency to which the Company was exposed because of the investigations revealed in the notes to the financial statements since 2017. Nevertheless, the Agreement enforceability is subject to court approval and its terms and conditions are subject to confidentiality provisions in such agreement.

The Company is currently evaluating the changes to its Financial Plan approved on November 2, 2020 to repay the final amount of the civil penalty.

d)	Current situation of the Company

As of June 30, 2021, contingencies held by the Corporation are substantially the same as those existing as of December 31, 2020.

e)	New state of emergency due to COVID

On July 10, 2021, the Peruvian Government extended the State of National Emergency for a period of 30 days as a result of COVID-19. Likewise, certain economic activities are restricted, according to the alert level in each department of Peru, until August 31, 2021. Management considers that the measures taken by the national authorities have no impact on the continuity and development of the operations of the Company because the activities carried out by the Company are within the group of permitted activities and have not been significantly impacted by the pandemic.

The Company’s Management continues to monitor the evolution of the situation and the guidance of the national and international authorities, since events beyond the control of Management may arise that require modifying the established business plan. A further spread of Covid-19 and the consequent measures taken to limit the spread of the disease could affect the ability to conduct business in the normal way and, therefore, affect the financial position and results of operations.

Citizen immobilization, the restriction of activities of strategic companies as well as the paralysis of public entities have affected the execution of investment projects as well as the performance of exploration activities, until the date of approval of the financial statements, it is not expected that operations and going concern will be affected.

- 7 -

2.	BASIS OF PREPARATION

The condensed interim consolidated financial statements for the period ended June 30, 2021 have been prepared in accordance with IAS 34 "Interim Financial Reporting". The condensed interim consolidated financial statements provide comparative information regarding prior periods; 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 December 31, 2020, 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.

3.	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 at December 31, 2020.

3.1	Account balance reclassified as of June 30, 2020

Information on the subsidiary Adexus S.A. is presented. (hereinafter “Adexus”), whose main activity is to provide information technology solutions mainly in Chile and Peru, as of June 30, 2020 the subsidiary was recognized as a non-current asset held for sale; However, as of September 30, 2020, it was reclassified as a continuing operation for the reasons set forth in note 28.

As a result of this process, the amounts in the consolidated statement of income are reclassified as follows:

- 8 -

				For the period ended June 30, 2020
	Reported			Adexus			As restated
Revenues from construction activities		803,701			-			803,701
Revenues from services provided		425,749			59,853			485,602
Revenue from real estate and sale of goods		135,577			20,658			156,235
		1,365,027			80,511			1,445,538
Cost of construction activities		(784,176	)		-			(784,176	)
Cost of services provided		(379,278	)		(59,324	)		(438,602	)
Cost of real estate and sale of goods		(107,870	)		(16,831	)		(124,701	)
		(1,271,324	)		(76,155	)		(1,347,479	)
Gross profit		93,703			4,356			98,059
Administrative expenses		(72,275	)		(10,438	)		(82,713	)
Other income and expenses		(8,116	)		-			(8,116	)
Operating loss		13,312			(6,082	)		7,230
Financial expenses		(74,208	)		(5,712	)		(79,920	)
Financial income		6,650			52			6,702
Share of the profit or loss of associates and joint ventures accounted for using the equity method		1,519			-			1,519

Loss before income tax		(52,727	)		(11,742	)		(64,469	)
Income tax expense		(8,983	)		2,826			(6,157	)
Loss from continuing operations		(61,710	)		(8,916	)		(70,626	)
(Loss) profit from discontinued operations		(8,916	)		8,916			-
Loss for the period		(70,626	)		-			(70,626	)
Loss attributable to:
Owners of the Company		(69,795	)		-			(69,795	)
Non-controlling interest		(831	)		-			(831	)
		(70,626	)		-			(70,626	)

4.	FINANCIAL RISK MANAGEMENT

Financial risk management is carried out by the Corporation’s Management. Management oversees the general management of 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 excess liquidity, which are supervised and monitored periodically.

4.1	Financial risk factors

The Corporation’s activities expose it 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.

a)	Market risks

i)	Foreign exchange risk

The 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, 2020 and June 30, 2021, this exposure is mainly concentrated in fluctuations of U.S. dollar, the Chilean and Colombian Pesos.

- 9 -

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 in effect at that date, according to the currency exchange rate:

	At December 31, 2020		At June 30, 2021

Soles (a)		3.624		3.866
Chilean Pesos (b)		711.24		727.76
Colombian Pesos (c)		3,432.50		3,756.67

(a)

Soles published by the Superintendency of Banking, Insurance and Pension Fund Administrators (SBS).

(b)

Chilean pesos published by the Central Bank of Chile.

(c)

Colombian pesos published by Banco of the Republica of Colombia.

The consolidated statement of financial position includes the following:

	As of December 31, 2020					As of June 30, 2021
		S/(000	)	USD(000)			S/(000	)	USD(000)

Assets		2,125,400			586,479		2,280,274			589,828
Liabilities		1,165,475			321,599		2,023,607			523,437

For the periods ended June 30, 2020 and 2021, the Corporation’s exchange gains and losses for the Peruvian Sol, the Chilean and Colombian Pesos exposure against the U.S. dollar was:

	2020			2021
Gain		259,174			184,352
Loss		(260,712	)		(197,942	)

ii)	Price risk

Management considers that the exposure of the Corporation to the price risk of its investments in mutual funds, bonds, 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.

b)	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.

- 10 -

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

Management does not expect the Corporation to incur any losses from the performance by these counterparties, except for the ones already recorded at the financial statements.

c)	Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents, the availability of funding through an adequate number of sources of committed credit facilities and the capacity to close out positions in the market. Historically, the Corporation cash flows enabled it to meet its obligations. Due to the COVID-19 pandemic (Note 1-e), the Corporation has implemented various actions to reduce its exposure to liquidity risk, and has developed a Financial Plan based on several steps, which were designed assuming attaining a plea bargain agreement within a reasonable time frame. The Financial Plan aims to enable compliance with the various obligations at the corporate and group companies’ levels.

The Corporation’s Corporate Finance Office monitors rolling forecasts of the Corporation’s liquidity requirements to ensure it exists sufficient cash to meet operational needs so that the Corporation does not breach borrowing limits or covenants, where applicable, on any of its borrowing facilities. Less significant financing transactions are controlled by the Finance Management of each subsidiary.

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

Surplus cash held by the operating entities over the balance required for working capital management is invested in interest-bearing checking accounts or time deposits, selecting instruments with appropriate maturities and sufficient liquidity.

The table below analyzes the Corporation’s financial liabilities into relevant maturity groupings based on the remaining period from the date of the consolidated statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows, which include interest to be applied according to the established schedule.

As of December 31, 2020	Less than 1 year		1-2 years		2-5 years		More than 5 years		Total

Other financial liabilities (except for finance leases and lease liability for right-of-use asset)		433,318		183,796		197,785		23,953		838,852
Finance leases		16,287		14,919		20,851		8,515		60,572
Lease liability for right-of-use asset		24,714		32,006		19,847		11,131		87,698
Bonds		137,090		168,673		385,919		971,543		1,663,225
Trade accounts payables (except non-financial liabilities)		1,001,470		40,502		-		-		1,041,972
Accounts payables to related parties		43,818		35,461		-		836		80,115
Other accounts payables (except non-financial liabilities)		288,037		2,185		115,321		-		405,543
		1,944,734		477,542		739,723		1,015,978		4,177,977

- 11 -

As of June 30, 2021	Less than 1 year		1-2 years		2-5 years		More than 5 years		Total

Other financial liabilities (except for finance leases and lease liability for right-of-use asset)		461,270		48,105		259,574		50,959		819,908
Finance leases		13,229		10,977		29,306		7,796		61,308
Lease liability for right-of-use asset		21,781		21,579		25,026		12,588		80,974
Bonds		130,116		172,239		444,481		859,599		1,606,435
Trade accounts payables (except non-financial liabilities)		1,107,871		9,723		19,927		12,132		1,149,653
Accounts payables to related parties		44,184		36,741		-		836		81,761
Other accounts payables (except non-financial liabilities)		292,772		2,066		107,026		-		401,864
		2,071,223		301,430		885,340		943,910		4,201,903

4.2	Capital management risk

The Corporation’s objectives when managing capital are to safeguard the Corporation’s ability to continue as a going concern in order to provide returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to minimize the cost of capital. In 2017 the situation of the Corporation had lead Management to monitor deviations that might cause the non-compliance of covenants and may hinder the renegotiation of liabilities (Note 15). In extraordinary events as explained in Note 1, the Corporation identifies the possible deviations and requirements and establishes a plan.

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

The Corporation monitors capital based on the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including current and non-current borrowings), less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the consolidated statement of financial position plus net debt.

As of December 31, 2020 and June 30, 2021, the gearing ratio is presented below indicating the Corporation’s strategy to keep it in a range from 0.07 to 0.70.

	At December 31, 2020			At June 30, 2021
Total financial liabilities and bonds (Note 15 and Note 16)		1,831,079			1,795,732
Less: Cash and cash equivalents (Note 8)		(900,168	)		(826,879	)
Net debt		930,911			968,853
Total equity		1,595,296			1,514,519
Total capital		2,526,207			2,483,372
Gearing ratio		0.37			0.39

4.3	Fair value estimation

For the classification of the type of valuation used by the Corporation for its financial instruments at fair value, the following levels of measurement have been established.

- 12 -

-	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).

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

	Level 3
As of December 31, 2020

Financial liabilities
Other financial entities (Note 15-b)		152,523

As of June 30, 2021

Financial liabilities
Other financial entities (Note 15-b)		162,549

5.	CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

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

In preparing these condensed interim consolidated financial statements, the significant judgements made by management in applying the 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, 2020.

6.	SEASONALITY OF OPERATIONS

The Corporation does not present seasonality in the operations of any of its subsidiaries; however, economic activities temporarily restricted due to COVID-19 pandemic and government measures implemented to contain the spread of the virus. As a result, this situation affected negatively Corporation's revenues and financial position (Note 1.e).

7.	OPERATING SEGMENTS

Operating segments are reported consistently with the internal reports that are reviewed by the Corporation’ 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.

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

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

- 13 -

Inter-segmental sales transactions are entered into at prices that are similar to those that would have been agreed to with unrelated third parties. Revenues from external customers reported are measured in a manner consistent with the basis of preparation of the financial statements. Sales of goods are related to Real State 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 the Goup’s revenue.

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

Operating segments financial position
Segment reporting
			Infrastructure
As of December 31, 2020	Engineering and construction		Energy		Toll roads		Transportation		Water treatment		Real estate		Parent Company operations		Eliminations			Consolidated

Assets.-
Cash and cash equivalent		382,850		60,165		117,893		207,975		7,408		73,531		50,346		-			900,168
Trade accounts receivables, net		425,939		37,614		25,014		111,602		565		38,043		64,390		-			703,167
Work in progress, net		186,433		-		-		-		-		-		-		-			186,433
Accounts receivable from related parties		107,495		35		31,868		2,624		30		1,342		102,103		(218,159	)		27,338
Other accounts receivable		323,084		27,900		23,631		13,220		197		10,446		35,051		2			433,531
Inventories, net		58,653		36,016		8,496		31,861		-		418,341		360		(1,727	)		552,000
Prepaid expenses		7,798		1,964		6,485		328		116		-		6,281		-			22,972
Total current assets		1,492,252		163,694		213,387		367,610		8,316		541,703		258,531		(219,884	)		2,825,609

Long-term trade accounts receivable, net		53,036		-		15,740		632,214		-		2,181		27,495		-			730,666
Long-term accounts receivable from related parties		315,393		-		14,508		-		11,103		-		611,498		(332,431	)		620,071
Prepaid expenses		-		981		19,009		2,048		736		-		-		(510	)		22,264
Other long-term accounts receivable		134,719		70,694		531		-		7,346		54,237		60,696		-			328,223
Investments in associates and joint ventures		109,870		8,080		-		-		-		6,095		1,322,865		(1,411,394	)		35,516
Investment property		1,467		-		-		-		-		24,606		44,521		(44,521	)		26,073
Property, plant and equipment, net		169,091		166,382		9,186		794		146		9,592		16,718		33,560			405,469
Intangible assets, net		143,575		250,327		371,437		681		-		872		19,017		6,081			791,990
Right-of-use assets, net		8,179		9,872		4,626		99		-		3,936		51,401		(13,595	)		64,518
Deferred income tax asset		174,269		4,717		5,037		-		779		18,704		53,536		5,123			262,165
Total non-current assets		1,109,599		511,053		440,074		635,836		20,110		120,223		2,207,747		(1,757,687	)		3,286,955
Total assets		2,601,851		674,747		653,461		1,003,446		28,426		661,926		2,466,278		(1,977,571	)		6,112,564

Liabilities.-
Borrowings		230,682		32,550		2,405		42		-		95,709		102,469		(10,973	)		452,884
Bonds		4,546		-		32,819		21,081		-		-		-		-			58,446
Trade accounts payable		861,833		51,225		51,221		32,637		61		42,565		57,625		-			1,097,167
Accounts payable to related parties		185,104		1,083		17,738		21,531		-		19,074		15,708		(216,420	)		43,818
Current income tax		26,922		1,351		1,638		3,606		166		-		811		-			34,494
Other accounts payable		525,195		12,905		35,997		6,719		766		91,976		40,252		4,596			718,406
Provisions		8,876		18,943		1,659		-		-		492		62,787		-			92,757
Total current liabilities		1,843,158		118,057		143,477		85,616		993		249,816		279,652		(222,797	)		2,497,972

Borrowings		25,273		103,154		2,291		59		-		11,021		328,753		(25,115	)		445,436
Long-term bonds		22,911		-		248,029		603,373		-		-		-		-			874,313
Long-term trade accounts payable		-		-		-		-		-		-		40,502		-			40,502
Other long-term accounts payable		140,605		-		11,623		231		2,762		23,357		4,654		-			183,232
Long-term accounts payable to related parties		104,432		-		836		36,297		24,207		-		186,886		(316,361	)		36,297
Provisions		122,503		37,599		26,034		1,925		-		-		148,548		-			336,609
Derivative financial instruments		-		-		-		-		-		-		-		-			-
Deferred income tax liability		25,576		36,793		1,518		39,020		-		-		-		-			102,907
Total non-current liabilities		441,300		177,546		290,331		680,905		26,969		34,378		709,343		(341,476	)		2,019,296
Total liabilities		2,284,458		295,603		433,808		766,521		27,962		284,194		988,995		(564,273	)		4,517,268
Equity attributable to controlling interest in the Company		261,501		354,982		161,710		177,694		464		138,933		1,474,398		(1,302,076	)		1,267,606
Non-controlling interest		55,892		24,162		57,943		59,231		-		238,799		2,885		(111,222	)		327,690
Total liabilities and equity		2,601,851		674,747		653,461		1,003,446		28,426		661,926		2,466,278		(1,977,571	)		6,112,564

- 14 -

Operating segments financial position
Segment reporting
			Infrastructure
As of June 30, 2021	Engineering and construction		Energy		Toll roads		Transportation		Water treatment		Real estate		Parent Company operations		Eliminations			Consolidated

Assets.-
Cash and cash equivalent		295,439		88,802		106,528		199,901		6,778		91,148		38,283		-			826,879
Trade accounts receivables, net		490,963		61,354		39,785		104,501		1,283		10,660		57,854		-			766,400
Work in progress, net		279,464		-		-		-		-		-		-		-			279,464
Accounts receivable from related parties		99,824		90		47,019		3,689		30		2,194		112,496		(236,735	)		28,607
Other accounts receivable		314,954		27,933		29,541		11,326		751		6,623		35,201		2			426,331
Inventories, net		61,702		40,294		8,327		32,637		38		411,879		1,823		(1,804	)		554,896
Prepaid expenses		7,942		1,993		5,974		810		54		-		9,466		-			26,239
Total current assets		1,550,288		220,466		237,174		352,864		8,934		522,504		255,123		(238,537	)		2,908,816
Non-current assets classified as held for sale		-		-		-		-		-		-		-		-			-
Total current assets		1,550,288		220,466		237,174		352,864		8,934		522,504		255,123		(238,537	)		2,908,816

Long-term trade accounts receivable, net		71,413		-		15,796		647,504		-		-		16,753		-			751,466
Long-term accounts receivable from related parties		316,574		-		14,788		-		11,319		-		629,089		(352,308	)		619,462
Prepaid expenses		-		981		21,530		1,970		710		-		-		(510	)		24,681
Other long-term accounts receivable		163,736		77,727		-		-		7,346		57,090		41,248		-			347,147
Investments in associates and joint ventures		108,423		8,571		-		-		-		6,095		1,302,543		(1,389,788	)		35,844
Investment property		-		-		-		-		-		23,514		43,540		(43,540	)		23,514
Property, plant and equipment, net		159,773		154,505		8,117		698		134		8,028		13,817		32,579			377,651
Intangible assets, net		146,258		237,964		346,066		625		-		787		18,300		5,555			755,555
Right-of-use assets, net		5,989		6,334		5,700		80		26		2,969		47,747		(12,062	)		56,783
Deferred income tax asset		179,922		2,555		8,805		-		772		18,775		66,435		5,162			282,426
Total non-current assets		1,152,088		488,637		420,802		650,877		20,307		117,258		2,179,472		(1,754,912	)		3,274,529
Total assets		2,702,376		709,103		657,976		1,003,741		29,241		639,762		2,434,595		(1,993,449	)		6,183,345

Liabilities.-
Borrowings		240,057		28,313		3,332		48		18		84,665		126,356		(12,330	)		470,459
Bonds		4,784		-		33,502		22,320		-		-		-		-			60,606
Trade accounts payable		910,293		42,260		44,314		27,660		204		36,772		64,970		-			1,126,473
Accounts payable to related parties		176,079		909		41,118		27,220		29		18,798		16,286		(236,255	)		44,184
Current income tax		13,885		640		3,804		-		182		-		494		-			19,005
Other accounts payable		659,964		19,013		41,818		7,708		829		104,647		51,280		4,910			890,169
Provisions		15,524		17,796		1,670		-		-		512		67,824		-			103,326
Total current liabilities		2,020,586		108,931		169,558		84,956		1,262		245,394		327,210		(243,675	)		2,714,222

Borrowings		17,228		112,799		2,505		34		9		6,418		291,531		(24,122	)		406,402
Long-term bonds		22,560		-		232,983		602,722		-		-		-		-			858,265
Long-term trade accounts payable		-		-		-		-		-		-		38,036		-			38,036
Other long-term accounts payable		110,645		-		10,073		198		3,022		24,611		2,708		-			151,257
Long-term accounts payable to related parties		111,387		-		836		37,577		24,671		-		198,043		(334,937	)		37,577
Provisions		128,492		40,274		30,406		2,601		-		-		152,553		-			354,326
Deferred income tax liability		25,578		41,693		-		41,470		-		-		-		-			108,741
Total non-current liabilities		415,890		194,766		276,803		684,602		27,702		31,029		682,871		(359,059	)		1,954,604
Total liabilities		2,436,476		303,697		446,361		769,558		28,964		276,423		1,010,081		(602,734	)		4,668,826
Equity attributable to controlling interest in the Company		211,951		378,352		154,508		175,637		277		137,001		1,421,658		(1,280,591	)		1,198,793
Non-controlling interest		53,949		27,054		57,107		58,546		-		226,338		2,856		(110,124	)		315,726
Total liabilities and equity		2,702,376		709,103		657,976		1,003,741		29,241		639,762		2,434,595		(1,993,449	)		6,183,345

- 15 -

Operating segment performance
Segment Reporting
				Infrastructure
For the period ended June 30, 2020	Engineering and construction			Energy			Toll roads			Transportation			Water treatment			Real estate			Parent Company operations			Elimination			Consolidated

Revenue		963,206			178,837			193,267			167,652			1,681			32,298			119,976			(211,379	)		1,445,538
Gross profit (loss)		29,801			23,142			15,951			50,916			425			6,573			(863	)		(27,886	)		98,059
Administrative expenses		(57,119	)		(8,026	)		(8,525	)		(6,770	)		(208	)		(10,908	)		(19,659	)		28,502			(82,713	)
Other income and expenses, net		3,010			(744	)		(13,466	)		72			-			419			1,891			702			(8,116	)
Operating (loss) profit		(24,308	)		14,372			(6,040	)		44,218			217			(3,916	)		(18,631	)		1,318			7,230
Financial expenses		(32,599	)		(11,001	)		(17,376	)		(3,412	)		(26	)		(6,280	)		(22,950	)		13,724			(79,920	)
Financial income		2,529			489			3,947			2,553			231			3,479			8,400			(14,926	)		6,702
Dividends		-			-			-			-			-			-			2,342			(2,342	)		-
Share of profit or loss in associates		-			-			-			-			-			-			-			-			-
and joint ventures		134			1,062			-			-			-			(5	)		(31,305	)		31,633			1,519
(Loss) profit before income tax		(54,244	)		4,922			(19,469	)		43,359			422			(6,722	)		(62,144	)		29,407			(64,469	)
Income tax		826			(864	)		496			(13,256	)		(250	)		1,412			5,465			14			(6,157	)
(Loss) profit for the year		(53,418	)		4,058			(18,973	)		30,103			172			(5,310	)		(56,679	)		29,421			(70,626	)

(Loss) profit from attributable to:
Owners of the Company		(49,220	)		2,608			(16,615	)		22,577			172			(1,312	)		(56,649	)		28,644			(69,795	)
Non-controlling interest		(4,198	)		1,450			(2,358	)		7,526			-			(3,998	)		(30	)		777			(831	)
		(53,418	)		4,058			(18,973	)		30,103			172			(5,310	)		(56,679	)		29,421			(70,626	)

- 16 -

Operating segment performance
Segment Reporting
				Infrastructure
For the Period ended June 30, 2021	Engineering and construction			Energy			Toll roads			Transportation			Water treatment			Real estate			Parent Company operations			Elimination			Consolidated

Revenue		1,185,048			234,508			242,925			173,058			1,774			92,783			114,824			(160,730	)		1,884,190
Gross profit (loss)		65,341			49,177			28,764			49,450			517			13,673			4,245			(23,071	)		188,096
Administrative expenses		(62,993	)		(6,467	)		(7,876	)		(7,625	)		(243	)		(6,949	)		(27,067	)		23,764			(95,456	)
Other income and expenses, net		(3,407	)		(405	)		(1,836	)		1,317			(7	)		957			136			344			(2,901	)
Operating (loss) profit		(1,059	)		42,305			19,052			43,142			267			7,681			(22,686	)		1,037			89,739
Financial expenses		(50,228	)		(6,703	)		(14,081	)		(5,291	)		(58	)		(6,266	)		(46,864	)		11,651			(117,840	)
Financial income		928			368			1,269			308			276			1,365			9,777			(11,587	)		2,704
Dividends		-			-			-			-			-			-			5,856			(5,856	)		-
Share of profit or loss in associates
and joint ventures		(1,469	)		1,244			-			-			-			-			(1,941	)		3,227			1,061
(Loss) profit before income tax		(51,828	)		37,214			6,240			38,159			485			2,780			(55,858	)		(1,528	)		(24,336	)
Income tax		1,372			(10,952	)		(2,369	)		(11,901	)		(208	)		(345	)		3,926			3			(20,474	)
(Loss) profit for the year		(50,456	)		26,262			3,871			26,258			277			2,435			(51,932	)		(1,525	)		(44,810	)

(Loss) profit from attributable to:
Owners of the Company		(49,189	)		23,370			839			19,693			277			(1,933	)		(51,903	)		(2,751	)		(61,597	)
Non-controlling interest		(1,267	)		2,892			3,032			6,565			-			4,368			(29	)		1,226			16,787
		(50,456	)		26,262			3,871			26,258			277			2,435			(51,932	)		(1,525	)		(44,810	)

- 17 -

There are no differences as compared to previous year-end consolidated financial statements based on segmentation or measurement of financial performance by segment.

8.	CASH AND CASH EQUIVALENTS

This account comprises:


	At December 31,		At June 30,
	2020		2021

Cash on hand		996		951
Remittances in-transit		2,340		2,510
Bank accounts (a)		274,582		327,425
Current accounts		161,227		139,474
Banco de la Nación		20,862		14,713
Savings deposits and mutual funds		9,038		13,860
Deposits in financial institutions		83,455		159,378
Escrow account (b)		622,250		495,993
Operational funds		298,435		195,162
Reserve funds		144,737		164,734
Consortium funds		122,088		78,037
Guarantee funds		56,990		58,060
		900,168		826,879

(a)

The Corporation maintains current accounts with local and foreign banks that include time deposits have maturities less than 90 days and may be renewed upon maturity. These deposits earn interest that fluctuates between 0.15% and 2.70%. Additionally, it includes current accounts in the Banco de la Nacion for the exclusive use of paying tax obligations.

(b)

The Corporation maintains trust accounts in local and foreign banks for the exclusive use of operations in projects and join operations. It also includes reserve funds for the payments of bonds issued by the subsidiaries Tren Urbano de Lima S.A. and Norvial S.A. amounting to S/116 million and S/21 million, respectively, as of June 30, 2021 (S/132 million and S/21 million, respectively, as of December 31, 2020).

9.	TRADE ACCOUNTS RECEIVABLES, NET

This account comprises:

	Total				Current				Non-current
	At		At		At		At		At		At
	December 31,		June 30,		December 31,		June 30,		December 31,		June 30,
	2020		2021		2020		2021		2020		2021

Receivables (net) (a)		753,693		768,518		254,587		268,283		499,106		500,235
Unbilled receivables (net) - Subsidiaries (b)		413,364		470,669		337,244		385,801		76,120		84,868
Unbilled receivables (net) - Concessions (c)		266,776		278,679		111,336		112,316		155,440		166,363
		1,433,833		1,517,866		703,167		766,400		730,666		751,466

a)	Receivables are presented net of impairment and present value discount. The value of the impairment amounts to S/47.4 million (S/47.2 million as of December 31, 2020). The ageing is detailed as follows:

- 18 -

	At December 31, 2020		At June 30, 2021
Current		718,220		703,232
Past due up to 30 days		5,737		12,950
Past due from 31 days up to 90 days		6,801		22,286
Past due from 91 days up to 120 days		2,279		6,343
Past due from 121 days up to 360 days		4,185		7,473
Past due over 360 days		16,471		16,234
		753,693		768,518

As of June 30, 2021, the amount overdue for more than 360 days mainly includes invoices receivable from subsidiaries: Cumbra Ingenieria S.A. for S/1.5 million, Viva Negocio Inmobiliario S.A. for S/1.9 million, Concar S.A.C. for S/2.7 million and Cumbra Peru S.A. for S/10.1 million (Concar S.A. for S/2.7 million and Cumbra Peru S.A. for S/12.5 million, as of December 31, 2020).

Unbilled receivables from subsidiaries correspond to the estimates for services rendered that were not billed, valuations in process or pending approval. The balance includes present value discount for S/11.7 million and impairment for S/5.9 million (present value discount for S/12.5 million and impairment for S/5.9 million, as of December 31, 2020), and detailed by subsidiary:

	At		At
	December 31,		June 30,
	2020		2021
Cumbra Peru S.A.		315,878		371,357
Concar S.A.C.		6,298		10,885
Cumbra Ingenieria S.A.		25,823		34,343
UNNA Energia S.A.		1,512		2,203
Adexus S.A.		63,853		51,881
		413,364		470,669

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

	At		At
	December 31,		June 30,
	2020		2021
Tren Urbano de Lima S.A.		235,763		242,249
Survial S.A.		10,611		11,883
Norvial S.A.		15,436		19,138
Concesión Canchaque S.A.C.		4,401		4,799
Concesionaria La Chira S.A.		565		610
		266,776		278,679

- 19 -

10.	WORK IN PROGRESS

This account comprises:

	At		At
	December 31,		June 30,
	2020		2021

Cumbra Peru S.A.		170,965		270,584
Cumbra Ingenieria S.A.		15,468		8,880
		186,433		279,464

Work in progress costs include all those expenses incurred for construction contracts. The Corporation estimates that all costs incurred will be billed and collected.

The main projects of work in progress, grouped by subsidiary, are presented below:

	At		At
	December 31,		June 30,
	2020		2021

Vial y Vives - DSD S.A. - Quebrada Blanca Project		73,337		110,565
Vial y Vives - DSD S.A. - Modernization and expansion of Arauco Plant		24,224		67,784
Cumbra Peru S.A. - Concentrator Plant and tunnel of Quellaveco		68,701		68,142
Cumbra Peru S.A. - Talara Refinery		15,468		23,321
Others		4,703		9,652
		186,433		279,464

11.	TRANSACTIONS WITH RELATED PARTIES

a)	Transactions with related parties

Major transactions for the periods ended June 30, 2020 and 2021 between the Company and its related parties are summarized as follows:

	2020		2021
Revenue from sales of goods and services:
- Joint operations		11,838		6,459
- Associates		911		38
		12,749		6,497

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

- 20 -

b)	Balances of transactions with related parties

	As of December 31,				As of June 30,
	2020				2021
	Receivable		Payable		Receivable		Payable
Current portion:
Joint operations
Consorcio Rio Urubamba		9,357		-		9,664		-
Consorcio Rio Mantaro		-		7,655		-		8,148
Consorcio Constructor Chavimochic		-		6,208		-		6,785
Consorcio Peruano de Conservación		3,156		-		576		2,405
Consorcio Vial Quinua		-		2,051		-		2,011
Consorcio Chicama Ascope		2,922		-		3,900		-
Consorcio Inti Punku		-		6,556		2,304		-
Consorcio GyM Conciviles		1,341		1,472		1,430		3,357
Consorcio Manperan		1,057		656		1,992		1,800
Consorcio Italo Peruano		1,520		217		1,366		165
Consorcio Norte Pachacutec		1,077		1,192		1,124		1,213
Consorcio Ermitaño		890		474		1,014		501
Terminales del Peru		501		161		182		160
Consorcio CDEM		1,111		-		71		-
Consorcio GyM-Stracon		-		644		-		192
Otros menores		2,446		2,716		1,963		265
		25,378		30,002		25,586		27,002

Other related parties
Ferrovias S.A.		-		11,139		-		17,182
Peru Piping Spools S.A.C.		1,960		2,677		3,021		-
		1,960		13,816		3,021		17,182
Current portion		27,338		43,818		28,607		44,184



Non-current portion
Gasoducto Sur Peruano S.A.		620,071		-		619,462		-
Ferrovias S.A.		-		12,862		-		13,721
Ferrovias Participaciones S.A.		-		23,435		-		23,856
Non-current		620,071		36,297		619,462		37,577

Receivables and payables are mainly current and do not have specific guarantees.

Accounts receivable from related parties are mainly to sales of goods and services. These balances do not bear interest and as of June 30, 2021 do not require a provision for impairment. The account receivable from Gasoducto Sur Peruano S.A. is presented net of impairment and present value discount; the variation between December 2020 and June 2021, is mainly due to the effect of the exchange difference, generating an income of S/39.5 million; and the impact of the discount rate applied to the calculation of the present value, that generated an expense of S/24.8 million.

Accounts payable to related parties mainly related to services of engineering, construction, maintenance and others. Such accounts are not interest bearing because they are short-term.

- 21 -

12.	OTHER ACCOUNTS RECEIVABLE

This account comprises:

	Total						Current						Non-current
	At			At			At			At			At			At
	December 31,			June 30,			December 31,			June 30,			December 31,			June 30,
	2020			2021			2020			2021			2020			2021

Advances to suppliers		76,200			72,431			76,200			72,431			-			-
Income tax on-account payments		48,054			45,699			48,052			45,699			2			-
VAT credit		54,076			48,164			43,498			37,893			10,578			10,271
Guarantee deposits		217,441			248,231			156,123			164,438			61,318			83,793
Claims to third parties		212,565			225,169			108,748			113,024			103,817			112,145
Petroleos del Peru S.A.- Petroperu S.A.		87,826			97,649			17,132			19,922			70,694			77,727
ITAN and other tax receivable		63,003			57,618			30,468			25,569			32,535			32,049
Restricted funds		29,121			9,514			2,092			2,168			27,029			7,346
Rental and sale of equipment - GyM S.A. projects		29,149			31,003			29,149			31,003			-			-
Accounts receivable from personneel		10,957			11,472			10,957			11,394			-			78
Consorcio Panorama		25,026			26,331			-			-			25,026			26,331
Other minors		10,386			4,862			9,738			4,118			648			744
		863,804			878,143			532,157			527,659			331,647			350,484
Impairment		(102,050	)		(104,665	)		(98,626	)		(101,328	)		(3,424	)		(3,337	)
		761,754			773,478			433,531			426,331			328,223			347,147

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 advances to suppliers and tax credits. Other non-current accounts receivable have 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

This account comprises:

	At		At
	December 31,		June 30,
	2020		2021
Associates		27,246		27,075
Joint ventures		8,270		8,769
		35,516		35,844

The movement of our investments in associates for the periods ended June 30, 2020 and 2021 is as follows:

	2020			2021
Balance at January 1		37,035			35,516
Dividends received		-			(753	)
Conversion adjustment		(10	)		20
Balance at June 30		38,544			35,844

Concesionaria Chavimochic S.A.C.

The entity was awarded the concesion of the Chavimochic irrigation project, including a) design and construction of the work required for the third-phase of the Chavimochic irrigation project in the province of La Libertad; b) operation and maintenance of works; and c) water supply to the Project users. Construction activities started in 2015; the effective concession period is 25 years, and the total investment amounts was estimated in US$647 million.

- 22 -

The civil works of the third stage of the Chavimochic Irrigation Project were structured in two phases. To date, the works of the first phase (Palo Redondo Dam) are 70% completed. However, at the beginning of 2017, the procedure for early termination of the Concession Contract was initiated due to the breach of contract by the Grantor, and all activities were suspended in December 2017. Due to the fact that no agreement was reached, the Concessionaire initiated an arbitration process at the UNCID, which is currently in process.

Moreover, from 2018 to date, the Peruvian Government (“the Grantor”) has been evaluating the modification of the Concession Contract, to determine a mechanism that allow the completion of the project, without resolution as of to date.

Finally, the Grantor and the Ministry of Agriculture and Irrigation (MINAGRI), and the Chavimochic Special Project, have signed an Agreement in order to allow MINAGRI to subrogate the ownership of the Project, within the framework of the provisions of the Emergency Decree N ° 021-2020.

14.	PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS

The movement in property, plant and equipment, intangible assets and right-of-use assets accounts for the periods ended June 30, 2020 and 2021, is as follows:

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

Net cost at January 1, 2020		463,990			854,227			90,581
Additions		18,896			40,691			7,979
Reclassifications and disposals		(9,960	)		(23,648	)		(10,046	)
Conversion adjustments		(1,945	)		(5,654	)		(422	)
Deductions for sale of assets		(6,463	)		-			-
Depreciation, amortization		(39,561	)		(50,655	)		(13,414	)

Net cost at June 30, 2020		424,957			814,961			74,678

Net cost at January 1, 2021		405,469			791,990			64,518
Additions		11,908			11,156			4,060
Reclassifications and disposals		858			478			(267	)
Conversion adjustments		2,234			486			275
Deductions for sale of assets		(4,703	)		-			-
Depreciation, amortization		(38,115	)		(48,555	)		(11,803	)

Net cost at June 30, 2021		377,651			755,555			56,783

(a)	Property, plant and equipment and right-of-use assets

As of June 30, 2021, additions to property, plant and equipment mainly corresponds to S/7 million in machinery of the engineering and construction segment; and S/1.5 million in equipment of the engineering and construction segment (as of June 30, 2020, S/7.4 million in machinery of the engineering and construction segment; and S/4.9 million in works in progress of the infrastructure segment).

- 23 -

As of June 30, 2021, additions to right-of-use assets comprise lease agreements signed by the Corporation.

For the periods ended June 30, 2020 and 2021, the depreciation of property, plant and equipment, investment property and right-of-use assets is presented in the Statement of Income as follows:

	2020			2021

Cost of services and goods (Note 21)		50,390			46,861
Administrative expenses (Note 21)		3,790			4,253
Total depreciation		54,180			51,114
(-) Depreciation related to investment property		(1,205	)		(1,196	)
(-) Depreciation related to right-of-use assets (Note 14)		(13,414	)		(11,803	)
Total depreciation of property, plant and equipment		39,561			38,115

(b)	Intangible assets

As of June 30, 2021, the additions to intangibles correspond mainly to software development for S/3.1 million to the engineering and construction segment; and S/3.6 million for investments in the preparation of wells, concessions and licenses, and other assets corresponding to the infrastructure segment (as of June 30, 2020, for S/35.6 million for investments in the preparation of wells, concessions and licenses, and other assets corresponding to the infrastructure segment).

For the periods ended June 30, 2020 and 2021, the amortization of intangibles is broken down in the statement of income as follows:

	2020		2021
Cost of sales and services (Note 21)		48,492		47,007
Administrative expenses (Note 21)		2,163		1,548
		50,655		48,555

Goodwill

Management reviews businesses results based on the type of economic activity carried out. Goodwill allocated to cash-generating units are:

	At December 31, 2020		At Junio 30, 2021
Engineering and construction		38,211		37,245
Electromechanical		20,735		20,735
		58,946		57,980

The variation reported in engineering and construction segment is due to translation adjustment of foreign business of the subsidiary Cumbra Peru S.A.

As a result of the impairment testing on goodwill performed by Management on an annual basis the recoverable amount of the related cash-generating unit (CGU) is determined based on the higher of its value in use and fair value less cost of disposal. Value in use is determined based on the future cash flows expected to be generated by the assessed CGU.

- 24 -

15.	BORROWINGS

This item comprises:

	Total				Current				Non-current
	At		At		At		At		At		At
	December 31,		June 30,		December 31,		June 30,		December 31,		June 30,
	2020		2021		2020		2021		2020		2021

Bank loans (a)		571,659		547,517		409,272		423,838		162,387		123,679
Finance leases		52,391		51,942		13,635		10,167		38,756		41,775
Lease liability for right-of-use asset		72,726		68,653		19,950		17,766		52,776		50,887
Other financial entities (b)		201,544		208,749		10,027		18,688		191,517		190,061
		898,320		876,861		452,884		470,459		445,436		406,402

(a)	Bank loans

As of December 31, 2020 and June 30, 2021, this item comprises bank loans in local and foreign currencies for working capital purposes. These obligations accrue fixed interest rates that fluctuate between 0.5% and 11.0% in 2020 and between 0.5% and 13.5% in 2021.

						Current				Non-current
						At		At		At		At
	Interest			Date of		December 31,		June 30,		December 31,		June 30,
	rate			maturity		2020		2021		2020		2021

Cumbra Peru S.A. (i)		0.90% / 13.54	%		2025		222,924		232,931		19,977		13,181
UNNA Energia S.A. (ii)		3.06% / 6.04	%		2027		24,950		22,787		99,474		110,498
AENZA S.A.A. (iii)		9.10% / 10.10	%		2022		51,977		70,153		39,618		-
Adexus S.A.		0.50% / 1.15	%		2021		19,224		18,166		-		-
Viva Negocio Inmobiliario S.A.		6.85% / 11.00	%		2022		90,197		79,801		3,318		-
							409,272		423,838		162,387		123,679

i)	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.) entered into 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 SA and Citibank N.A. The Framework Agreement aims to: (i) grant Cumbra Peru S.A. a syndicated revolving line of credit for working capital for up to US$1.6 million and S/143.9 million, which may be increased by an additional US$14 million subject to certain conditions; (ii) grant Cumbra Peru S.A. a line of credit of up to US$51.6 million and S/33.6 million; (iii) grant the Company, Cumbra Peru S.A., Construyendo Pais S.A., Vial y Vives - DSD S.A. and Concesionaria Via Expresa Sur S.A. a non-revolving line of credit to finance repayment commitments subject to performance bonds; (iv) grant a syndicated line of credit in favor of the Company and Cumbra Peru S.A. for the issuance of performance bonds up to an amount of US$100 million (which may be increased by an additional US$50 million subject to compliance with certain conditions); and (v) commit to maintain existing standby letters of credit issued at the request of Cumbra Peru S.A. and the Company, as well as the request of Construyendo Pais S.A., Vial y Vives – DSD S.A. and Concesionaria Via Expresa Sur S.A. The loan matured in July 2020, which maturity was extended, most recently, until May 31, 2021. At the date of this report, the extension addendum, reviewed and agreed by the Parties participating in the Framework Agreement, is in the process of being formalized. This delay has not generated and will not generate any contingency for the Company or its subsidiaries that participate in these agreements.

In accordance with the Financial Stability Framework Agreement, the Company must comply quarterly with two ratios, related to its invoices and sales provisions: (i) the calculated value of 90% of its bills receivable, and (ii) the calculated value of 80% of its income provisions must be greater than 50% of the amount of Tranche A pending payment.

- 25 -

As of June 30, 2021, the account receivable rate and unbilled receivable rate reached 43% and 153%, respectively. As of December 31, 2020 due to the stoppage of activities generated by the COVID-19 pandemic, the account receivable rate and unbilled receivable rate reached 56% and 142%, respectively. In relation to account receivable rate, the Company does not comply with the requirement ofthe Financial Stability Framework Agreement.

As of June 30, 2021, the Company's balance payable under the Financial Stability Framework Agreement amounts to US$28.6 million, equivalent to S/110.6 million (US$30.7 million, equivalent to S/111 million, as of December 31, 2020)

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 with a maximum exposure limit of US$80 million. These facilities are repaid within 8 years. In April 2021, an additional cash transfer of US$7.3 million (equivalent to US$28.2 million) was requested for the additional investments. As of June 30, 2021, TP has a total amount of financing of US$49.8 million (equivalent to S/192.4 million) and due in 2027 (US$46.4 million, equivalent to S/168.2 million, as of December 31, 2020). As of June 30, 2021, the amount of financing equivalent to the 50% interest held by the subsidiary UNNA Energia S.A. amounts to US$24.9 million, equivalent to S/96.2 million ( US$23.2 million, equivalent to S/84.1 million, as of December 31, 2020).

In addition, in November 2019, TP signed a loan agreement to finance the additional investments from 2019 to 2023, for a credit line amount 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 and in November 2019 disbursed to TP US$23 million. As of June 30, 2021, TP has a total amount of financing of US$20.2 million (equivalent to S/78.2 million) and due in 2026 (US$22 million, equivalent to S/80 million, as of December 31, 2020). As of June 30, 2021, the amount of financing equivalent to the 50% interest held by the subsidiary UNNA Energia S.A. amounts to US$10.1 million, equivalent to S/39.1 million (US$11 million, equivalent to S/40 million, as of December 31, 2020).

As of June 30, 2021 and the date of this report, TP is in compliance with the ratios established in the contract loan.

iii)	CS Peru Infrastructure Holdings LLC Loan

In July 2019, the Company entered into a medium-term loan credit agreement for up to US$35 million with CS Peru Infrastructure Holdings LLC. The term of the loan is three years, with quarterly installments of principal starting on the 18th month. The loan accrued interest at the following rates per annum: (i) for the period from and including the July 31, 2019 (“Closing Date”) to but excluding the date that is 6 months after the Closing Date, 9.10%; (ii) for the period from and including the date that is 6 months after the Closing Date to but excluding the date that is 1 year after the Closing Date, 9.35%; (iii) for the period between the first annual anniversary of the Closing Date and the day before the thirtieth month of the Closing Date, 9.60%, and (iv) for the period from the thirtieth month of the Closing Date to the third annual anniversary of the Closing Date, 10.10%. The loan was used for working capital in the Company, Cumbra Peru S.A. and Adexus S.A.

As of December 31, 2020, the Company defaulted with the covenants established in the loan contract and was reclassified to current liabilities. For the period ended June 30, 2021, the Company defaulted with the debt exposure ratio and minimum debt service ratio. As a consequence, the loan maintains as current liabilities.

As of June 30, 2021, the principal amount of the loan is US$18.4 million, equivalent to S/71 million (US$25.7 million, equivalent to S/93.2 million, as of December 31, 2020).

- 26 -

iv)	Banco Santander Loan

On December 30, 2020, Técnicas Reunidas enforced two letters of credit in the aggregate amount of US$23.7 million, which letters of credit had been issued by Santander on behalf of our subsidiary Cumbra as security pursuant to a construction contract. As a result, Cumbra subscribed to a short term loan with Banco Santander in the aggregate principal amount of US$23.7 million (equivalent to S/85.9 million). The loan accrues interest at an annual rate of Libor + 8%. The term of the loan was 30 days, which maturity was extended until March 30, 2021. We subsequently negotiated payment in installments, with the last installment due on September 30, 2021. As of June 30, 2021, the principal amount of the loan is US$23.7 million, equivalent to S/91.7 million (US$23.7 million, equivalent to S/85.9 million, as of December 31, 2020).

(b)	Other financial entities

The balance is mainly composed of the monetization of Norvial dividends, as described below.

At May 29, 2018 the Company subscribes an agreement 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 Norvial 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 Norvial S.A. by transferring its class B shares (equivalent to 48.8% of the capital of Norvial 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 Norvial'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.

During the 2020 period, the Company reviewed the projected cash flows and effective interest rate of the financial liability with BCI Peru based on new information available on Norvial's projected traffic and determined that there was a material quantitative change that exceeds the +/-10%. For this reason, the liability with BCI Peru measured at amortized cost was derecognized during 2020 in the amount of US$46 million; the difference between this amount and the new liability amounted to US$3.9 million, which was recorded in other income and expenses (net) in the income statement. Simultaneously, the Company recorded the same liability amounting to US$42.1 million which is measured at fair value from the date of initial recognition.

As of June 30, 2021, the loan balance payable amounted to US$40.9 million, equivalent to S/158.5 million (as of December 31, 2020, the balance was US$42.1 million, equivalent to S/152.5 million).

(c)	Fair value of borrowings

The carrying amount and fair value of borrowings are broken down as follows:

	Carrying amount				Fair value
	At December 31, 2020		At June 30, 2021		At December 31, 2020		At June 30, 2021
Bank loans		571,659		547,517		589,737		554,955
Finance leases		52,391		51,942		54,343		13,632
Lease liability for right-of-use asset		72,726		68,653		88,779		67,649
Other financial entities		201,544		208,749		247,857		174,817
		898,320		876,861		980,716		811,053

- 27 -

As of December 31, 2020 and as of June 30, 2021, the fair value is based on cash flows discounted using a rate based on the borrowing rate of 0.7% and 11% and are included as Level 2 in the level of measurement.

16.

BONDS

This item includes:

	Total				Current				Non-current
	At		At		At		At		At		At
	December 31,		June 30,		December 31,		June 30,		December 31,		June 30,
	2020		2021		2020		2021		2020		2021

Tren Urbano de Lima S.A. (a)		624,454		625,042		21,081		22,320		603,373		602,722
Norvial S.A. (b)		280,848		266,485		32,819		33,502		248,029		232,983
Cumbra Peru S.A. (c)		27,457		27,344		4,546		4,784		22,911		22,560
		932,759		918,871		58,446		60,606		874,313		858,265

(a)	Tren Urbano de Lima S.A.

In 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 expire in November 2039 and accrue interest at a rate of 4.75% (plus the VAC adjustment), present a risk rating of AA + (local scale) granted by Support & International Associates Risk Classifier. As of June 30, 2021, an accumulated amortization amounting to S/98.6 million (S/90.6 million as of December 31, 2020) has been made.

As of June 30, 2021, the balance includes VAC adjustments and interest payable for S/111.6 million (S/103.4 million as of December 31, 2020).

The account movement for the periods ended June 30, 2020 and 2021 is as follows:

	2020			2021

Balance at January, 1		618,497			624,454
Amortization		(2,873	)		(8,082	)
Accrued interest		11,946			23,768
Interest paid		(7,512	)		(15,098	)
Balance at June, 30		620,058			625,042

As part of the bond structuring process, Tren Urbano de Lima S.A. pledged to report and verify compliance with the following, measured according to their individual financial statements (covenants):

- Debt service coverage ratio not less than 1.2 times;

- Maintain a constant balance in the minimum trust equal to one month of operation and maintenance costs (including VAT).

- Maintain a constant balance in the minimum trust equal to the following two coupons according to the bond schedule.

As of December 31, 2020 and as of June 30, 2021, Tren Urbano de Lima S.A. has complied with the corresponding covenants.

As of June 30, 2021, the fair value amounts to S/719.4 million (S/710 million, as of December 31, 2020), this is based on discounted cash flows using the rate of 3.9% (3.6% as of December 31, 2020) and corresponds to level 2 of the fair value hierarchy.

- 28 -

(b)	Norvial S.A.

Between 2015 and 2016, the subsidiary Norvial S.A. issued the First Corporate Bond Program on the Lima Stock Exchange for a total S/365 million. Risk rating agencies Equilibrium y 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.

The account movement for the periods ended June 30, 2020 and 2021 is as follows:

	2020			2021

Balance at January, 1		305,545			280,848
Amortization		(5,384	)		(14,238	)
Accrued interest		6,193			11,374
Capitalized interest		91			-
Interest paid		(6,283	)		(11,499	)
Balance at June, 30		300,162			266,485

As part of the process of bond structuring, Norvial S.A. engaged to adhere to the following covenants:

-	Debt service coverage ratio of not less than 1.3 times.

-	Proforma gearing ratio lower than 4 times.

As of December 31, 2020 and June 30, 2021, Norvial S.A. has complied with the covenants.

As of June 30, 2021, the fair value amounts to S/270.6 million (S/304.7 million as of December 31, 2020), is based on discounted cash flows using rate 8.4% (8.1% as of December 31, 2020) 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 interest at a 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 June 30, 2021, the balance includes accrued interest payable for US$0.3 million, equivalent to S/1 million (US$0.6 million, equivalent to S/2.2 million, as of December 31, 2020).

- 29 -

The account movement for the periods ended June 30, 2020 and 2021 is as follows:

	2020		2021

Balance at January, 1		-		27,457
Additions		25,871		-
Amortization		-		(1,758	)
Exchange difference		1,710		1,663
Accrued interest		1,009		1,102
Interest paid		-		(1,120	)
Balance at June, 30		28,590		27,344

As of June 30, 2021, the fair value amounts to S/29.1 million (S/28.6 million as of December 31, 2020), is based on discounted cash flows using a rate of 6.3% (7.1% as of December 31, 2020) and is within level 3 of the fair value hierarchy.

17.	TRADE ACCOUNTS PAYABLE

This item includes:

	Total				Current				Non-Current
	At		At		At		At		At		At
	December 31,		June 30,		December 31,		June 30,		December 31,		June 30,
	2020		2021		2020		2021		2020		2021

Invoices payable		470,118		530,985		470,118		530,985		-		-
Provision of contract costs (a)		659,299		625,835		618,797		587,799		40,502		38,036
Notes payable		8,252		7,689		8,252		7,689		-		-
		1,137,669		1,164,509		1,097,167		1,126,473		40,502		38,036

(a)	The contract cost provisions include:

Goods and services received and not invoiced for S/480.5 million on engineering and construction segment, S/52 million on infrastructure segment, S/51.3 million on parent company operations segment and S/22.3 million on real estate segment (S/429.2 million, S/62.8 million, S/47 million and S/24.6 million respectively, as of December 31, 2020).

ii)	Estimate costs to come according to the the completion porcentage of projects amounting to S/18.8 million (S/95.7 million, as of December 31, 2020).

18.	OTHER ACCOUNTS PAYABLE

This item includes:

	Total				Current				Non-current
	At		At		At		At		At		At
	December 31,		June 30,		December 31,		June 30,		December 31,		June 30,
	2020		2021		2020		2021		2020		2021

Advances received from customers (a)		309,590		378,639		278,490		369,721		31,100		8,918
Consorcio Ductos del Sur - payable (b)		88,206		72,335		28,836		25,929		59,370		46,406
Salaries and other payable		77,386		137,855		77,386		137,855		-		-
Put option liability on Morelco acquisition		118,622		126,544		79,096		84,378		39,526		42,166
Third-party loans		11,608		11,625		9,533		9,549		2,075		2,076
Other taxes payable		115,862		124,866		102,240		112,064		13,622		12,802
Acquisition of additional non-controlling interest		27,596		30,455		27,596		30,455		-		-
Guarantee deposits		23,744		24,692		23,744		24,692		-		-
Consorcio Rio Mantaro - payables		58,129		62,011		58,129		62,011		-		-
Provision of interest for debt with suppliers		16,425		18,933		-		479		16,425		18,454
Other accounts payables		54,470		53,471		33,356		33,036		21,114		20,435
		901,638		1,041,426		718,406		890,169		183,232		151,257

- 30 -

(a)	Advances received from customers relate mainly from construction projects, and are applied to progress billings, in accordance with contract terms.

	Total				Current				Non-current
	At		At		At		At		At		At
	December 31,		June 30,		December 31,		June 30,		December 31,		June 30,
	2020		2021		2020		2021		2020		2021

Advances customers consortiums		83,640		189,268		83,640		189,268		-		-
Customer advances for real estate projects		78,286		93,312		78,286		93,312		-		-
Quellaveco Project		86,415		48,649		71,571		48,649		14,844		-
Special National Transportation Infrastructure Project		24,050		22,019		13,781		13,299		10,269		8,720
Others		37,199		25,391		31,212		25,193		5,987		198
		309,590		378,639		278,490		369,721		31,100		8,918

(b)

The balance of other accounts payable from Consorcio Constructor Ductos del Sur corresponds to payment obligations to vendors and main subcontractors for S/72.3 million (S/88.2 million as of December 31, 2020), assumed by the subsidiary Cumbra Peru S.A. as a result of the termination of Gasoducto Sur Peruano S.A. operations.

The fair value of short-term accounts approximates their book value due to their 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 for the periods shown.

19.	PROVISIONS

This item includes:

	Total				Current				Non-current
	At		At		At		At		At		At
	December 31,		June 30,		December 31,		June 30,		December 31,		June 30,
	2020		2021		2020		2021		2020		2021

Legal claims (a)		370,787		388,801		79,966		81,670		290,821		307,131
Tax claims		5,630		10,838		1,954		7,162		3,676		3,676
Provision for well closure (b)		52,949		58,013		10,837		14,494		42,112		43,519
		429,366		457,652		92,757		103,326		336,609		354,326

(a)	Legal contingencies correspond mainly to:

Civil compensation

Corresponding to the legal contingency estimated by management for exposure of the Company and its subsidiaries 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 Construcción”. As of June 30, 2021, the present value of the estimated provision totals S/154 million and US$17.2 million, equivalent to a total S/220.5 million.

Proceso administrative Indecopi

On March 9, 2021, Cumbra Peru S.A. was notified with the Final Instruction Report prepared by the Technical Secretariat, which is subject to review by the Commission for the Defense of Free Competition of INDECOPI, related to the sanctioning administrative procedure mentioned in Note 1.c). In this regard, Company and its legal advisors estimate that, based on the findings of the Final Investigation Report, the fine to be imposed on Cumbra Peru S.A. in this case should not exceed S/39 million and was recorded on June 30, 2021 the equivalent to the corresponding present value that results in S/24.5 million.

- 31 -

Securities Class actions NY SEC

During the first quarter of 2017 two securities class actions have been filed against the Company, and certain former employees in the Eastern District of New York. Both complaints allege false and misleading statements during the class period. In particular, they allege that the Company failed to disclose, among other things, that a) the Company knew that its partner Odebrecht was engaged in illegal activities, and b) the Company profited from such activities in violation of its own corporate governance standards.

As of July 2, 2021, the Company has signed the settlement agreement with the plaintiffs' attorneys, by which the parties agree to terminate the class action, subject to the court approval and the payment of the transaction amount by the Company. The amount agreed for the termination of the class action is equivalent to US$20 million. As of December 31, 2019, the Company registered a provision of US$15 million (equivalent of S/49.8 million), the difference of US$5 million will be covered by the professional liability insurance policy in accordance with the agreement signed with the insurance company. As of June 30, 2021, the Company maintains a provision plus interest of US$15.2 million, equivalent to S/58.9 million (as of December 31, 2020, US$14.9 million plus interest, equivalent to S/54 million).

On June 30, 2021, the first amendment to the agreement signed in 2020 was signed, which stipulates a payment of US$0.6 million (equivalent to S/2.2 million) and that the remaining US$14.1 million, plus an Interest of 5% and 8% after June 30, 2021, must be paid by the company before September 30, 2021.

Other legal provisions

As of June 30, 2021, it corresponds to civil, labor, administrative and contentious administrative contingencies estimated at S/84.9 (S/76 million as of December 31, 2020). In addition, within the legal contingencies of a civil nature, it mainly includes claims received from clients for S/45.9 million corresponding to the subsidiary Cumbra Peru S.A. (S/41.1 million, as of December 31, 2020).

(b)

The provision for closure as of June 30, 2021 mainly corresponds to: i) provisions for the closure of wells of UNNA Energia S.A. for S/53.2 million; ii) provision of costs associated with the closing of the concession contract of Norvial S.A. for S/4.8 million (S/48.4 million and S/4.5 million respectively, as of December 31, 2020).

The account movement for the periods ended June 30, 2020 and 2021 is as follows:

							Provision
	Legal			Tax			for well
	claims			claims			closure			Total

At January 1, 2020		274,633			3,686			50,116			328,435
Additions		11,936			1,954			1,034			14,924
Present value		602			-			-			602
Reversals of provisions		(7,410	)		(10	)		-			(7,420	)
Payments		(490	)		-			(1,035	)		(1,525	)
Translation adjustments		3,373			-			-			3,373
At June 30, 2020		282,644			5,630			50,115			338,389

At January 1, 2021		368,241			8,176			52,949			429,366
Additions		15,685			2,707			1,299			19,691
Present value		2,251			-			291			2,542
Reversals of provisions		(3,096	)		-			-			(3,096	)
Reclasification		(3,164	)		(45	)		3,209			-
Payments		(2,027	)		-			(59	)		(2,086	)
Translation adjustments		10,911			-			324			11,235
At June 30, 2021		388,801			10,838			58,013			457,652

- 32 -

20.

CAPITAL

As of June 30, 2021 and as of December 31, 2020, the capital of the Company is represented by 871,917,855 shares of a nominal value of S/1.00 each, all registered in the Public Registries.

As of June 30, 2021, a total of 157,865,225 shares were represented in ADS, equivalent to 31,573,045 ADSs at a rate of 5 shares per ADS.

As of December 31, 2020, a total of 190,863,050 shares were represented by ADS, equivalent to 38,172,610 ADSs at a rate of 5 shares per ADS.

21.	EXPENSES BY NATURE

For the periods ended June 30, 2020 and 2021, this item comprises:

	Cost
	of goods			Administrative
	and services			expenses		Total
2020
Salaries, wages and fringe benefits		471,876			50,778		522,654
Services provided by third-parties		375,389			19,370		394,759
Purchase of goods		251,199			-		251,199
Other management charges		144,185			6,115		150,300
Depreciation (Note 14)		50,390			3,790		54,180
Amortization (Note 14)		48,492			2,163		50,655
Impairment of accounts receivable		1,654			-		1,654
Taxes		5,623			497		6,120
Recovery of property, plant and equipment		(258	)		-		(258	)
Inventory recovery		(1,071	)		-		(1,071	)
		1,347,479			82,713		1,430,192

2021
Salaries, wages and fringe benefits		646,460			54,250		700,710
Services provided by third-parties		499,020			27,346		526,366
Purchase of goods		343,282			-		343,282
Other management charges		112,596			7,723		120,319
Depreciation (Note 14)		46,861			4,253		51,114
Amortization (Note 14)		47,007			1,548		48,555
Impairment of accounts receivable		542			-		542
Taxes		1,649			336		1,985
Recovery of property, plant and equipment		(1,323	)		-		(1,323	)
		1,696,094			95,456		1,791,550

- 33 -

22.	OTHER INCOME AND EXPENSES

For the periods ended June 30, 2020 and 2021, this item comprises:

	2020			2021
Other income:
Sale of assets		6,710			4,763
Recovery of provisions and impairments		4,392			3,283
Insurance compensation		44			2,491
Penalty income		-			717
Supplier debt forgiveness		183			-
Others		2,407			1,067
		13,736			12,321

Other expenditures:
Asset impairment		13,487			65
Civil repair to the Peruvian Government		-			-
Net cost of fixed assets disposal		6,516			4,749
Disposal of property, plant and equipment		148			1,426
Legal and tax litigation		-			-
Renegotiation of contract with suppliers		-			-
Present value of the call option		-			-
Provision for well closure		1,034			702
Administrative fine		160			8,079
Others		507			201
		21,852			15,222
		(8,116	)		(2,901	)

23.	FINANCIAL INCOME AND EXPENSES

For the periods ended June 30, 2020 and 2021, this item comprises:

	2020			2021

Financial income:
Interest on loans to third parties		813			121
Profit for present value of financial asset or financial liability		3,003			1,524
Interest on short-term bank deposits		1,218			338
Others		1,668			721
		6,702			2,704


Financial expenses:
Interest expense:
- Bank loans		31,918			34,302
- Bonds		13,483			12,476
- Loans from third parties		8,479			4,326
- Right-of-use		2,901			2,107
- Financial lease		1,824			1,641
Commissions and collaterals		11,903			13,031
Interests of the Tax Administration		1,557			10,964
Loss for present value of financial asset or financial liability (a)		5,648			25,493
Exchange difference loss, net		1,538			13,590
Derivative financial instruments		49			-
Other financial expenses		3,435			766
Less capitalized interest		(2,815	)		(856	)
		79,920			117,840

(a)	The increase is mainly generated by the effect of the present value of the account receivable from Gasoducto Sur Peruano S.A. for S/24.8 million (Note 11), due to the variation of the discount rate applied, which increased from 1.65% to 2.46%.

- 34 -

24.	INCOME TAX

The condensed interim consolidated financial statements for the period ended June 30, 2021, income tax expense is recognized based on management’s estimate of the annual income tax rate expected for the full financial year. The estimated annual tax rate as of June 30, 2021 is 84.13% (9.55% for the period ended in June 30, 2020).

25.	CONTINGENCIES, COMMITTMENTS AND GUARANTEES

As of June 30, 2021, contingencies held by the Corporation are substantially the same as those existing as of December 31, 2020.

The Corporation maintains guarantees and letters of credit in force in various financial entities guaranteeing operations for US$398.2 million (US$427.5 million, as of December 31, 2020).

26.

DIVIDENDS

In compliance with certain covenants, 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 inthe future. Additionally, “the 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 amortized.

For the period ended June 30, 2021, the Corporation’s subsidiaries have paid dividends to its non- controlling interests in the amount of S/11.2 million (S/61.7 million for period ended in June 30, 2020).

27.	LOSS PER SHARE

The basic loss per common share has been calculated by dividing the loss of the period attributable to the Corporation’s common shareholders by the weighted average of the number of common shares outstanding during that period. No diluted loss per common share has been calculated because there is no potential diluent common or investment shares (ie, 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 periods ended June 30, 2020 and 2021, the basic loss per common share is as follows:

		2020			2021

Loss attributable to owners of the Company
during the period			(69,795	)		(61,597	)
Weighted average number of shares in issue
at S/1.00 each, at June 30,			871,917,855			871,917,855

Basic loss per share (in S/)	(*)		(0.080	)		(0.071	)

(*) The Corporation does not have common shares with dilutive effects at June 30, 2020 and 2021.

- 35 -

28.	OPERATIONS OF SUBSIDIARY ADEXUS S.A. RECLASSIFIED AS CONTINUING OPERATIONS

As of September 30, 2020, the financial information of the subsidiary Adexus S.A. (hereinafter Adexus) was reclassified as continuous operation. The subsidiary that have been reclassified as a non-current assets held for sale at December 31, 2018, has as main activity to provide information technology solutions mainly in Chile and Peru. Despite the fact that the Company has been committed to a pan to carry out the sale, the circumstances that arose in the subsidiary during this period, which are explained below, have forced us to change initial plan, focusing in negotiating with vendors liabilities terms sale resulting in a viable plan again.

On November 19, 2019, Adexus filed an application for reorganization under law 20.720 with the Chilean courts of justice. The Company impaired the total investment value as of December 31, 2019.

On January 9, 2020, the Company communicated that the creditors committee of Adexus approved the judicial reorganization agreement proposed by Adexus in the framework of the reorganization procedure. In 2020, Adexus S.A. has complied with the payment schedule agreed with the creditors. On December 28, the creditor’s committee signed a debt reorganization agreement whithe pledge creditors and unsecured creditors.

29.	EVENTS AFTER THE DATE OF THE STATEMENT OF FINANCIAL POSITION

Convertible Bond Subscription Agreement

On July 13, 2021, has entered into a Convertible Bond Subscription Agreement with IG4 Capital Infrastructure Investments LP ("IG4") whereby it agrees to subscribe to debt instruments convertible into shares for a total price of US$22.1 million issued by the Company as part of the Convertible Bond Program for up to US$ 90 million. The subscription commitment referred above is subject to the condition that the tender offer made by IG4 is successful.

- 36 -

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