6-K 1 a51450854.htm GRANA Y MONTERO S.A.A. 6-K
FORM 6-K
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of October 2016

 Commission File Number 001-35591

GRAÑA Y MONTERO S.A.A.
(Exact name of registrant as specified in its charter)
 
GRAÑA Y MONTERO GROUP
(Translation of registrant’s name into English)
 
Republic of Peru
(Jurisdiction of incorporation or organization)
 
Avenida Paseo de la República 4667, Lima 34,
Surquillo, Lima
Peru
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F ___X____ Form 40-F _______
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes _______ No ___X____
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.
 


 
Grana y Montero Consolidated Results Report – Third Quarter 2016 Executive Summary The Group achieved Revenues of S/.4,238.8 MM during 3Q2016, a 24.6% decrease compared to 3Q2015 Gross Profit amounted to S/.450.1 MM in 3Q2016, decreasing 3.8% compared to 3Q2015 EBITDA was S/. 587.4 MM in 3Q2016, higher by 22.0% than the result obtained in 3Q2015 Net Income registered an increase reaching S/. 138.6 MM in 3Q2016 Backlog amounted to US$ 4,255.4 MM as of 3Q2016 and the recurrent businesses amounted to US$ 529.8 MM, reaching a total of US$ 4,755.1 MM, equivalent to 2.65x the annual revenues CONSOLIDATED QUARTERLY REVENUES (S/. MM) CONSOLIDATED QUARTERLY EBITDA (S/. MM) CONSOLIDATED QUARTERLY NET INCOME (S/. MM) The graphs above, show the Revenues, EBITDA and Net Income by quarter 3Q15 4Q15 1Q16 2Q16 3Q16 1,854 2,214 1,433 1,366 1,439 131 301 190 183 215 -33 82 71 34 35 REVENUES BY SEGMENT EBITDA BY SEGMENT NET INCOME BY SEGMENT as of 3Q2016 Engineering & Constructions 60% Technical Services 22% Infrastructure 15% Real Estate 3% Engineering & Constructions 27% Technical Services 17% Infrastructure 37% Real Estate 12% Holding 8% Engineering & Constructions 15% Technical Services 16% Infrastructure 36% Real Estate 3% Holding 30% Note: The Consolidate Results Reports presents the accumulated figures as of 3Q2015 and 3Q2016. References made to “3Q2015”, “3Q2016” and “Third Quarter” are made to the period of nine months from January 2nd to September 30th of the corresponding year.
 
 

 
 
 
Grana y Montero Consolidated Results Report – Third Quarter 2016 Consolidated Results Revenues Consolidated revenues reached S/. 4,238.3 MM during 3Q2016, a decrease of 24.6% compared to 3Q2015. In terms of Business Segments, revenues in the Engineering and Construction segment decreased 36.0% in 3Q2016, contributing with 60.0% of the Group’s revenues. The Infrastructure Segment decreased 10.9% due mainly to lower revenues in GMP and Survial; while the Real Estate Area registered an increased of 84.9% mainly explained by the sale of a piece of land from Almonte. Finally, the Technical Services Segment registered an increase of 17.6% which includes the consolidation of Adexus since August. Gross Profit Consolidated Gross Profit decrease from S/.467.7 MM to S/. 450.1 MM, equivalent to a decrease of 3.8% and a Gross Margin of 10.6% in 3Q2016, which is higher to the gross margin of 3Q2015. This is mainly explained by the improved results in the Real Estate Business Area, and more stable margins in the Engineering and Construction Area. In the Infrastructure Area, the Gross Profit increased from 18.6% to 19.8%. Operating Income In the “Other Operational Expenses” line of 3Q2016, reflects the profit from the sale of machinery and equipment, as well as a price adjustment in the purchase of Morelco, a reverse of provisions, and the extraordinary income from an agreement reached in the Collahuasi Project in Chile. In the “Profit from sale of investments in subsidiaries” line, the profit from the sale of our stake in the Transportadora de gas del Peru (Tgp) is registered, which also has an impact in the income tax due to the reversal of the deferred Income Tax. The increase in Financial expenses is a consequence of the increase in the debt of the Gaseoducto del Sur contribution financing. The “Participation in Associates” account registers the profit generated in projects where subsidiaries have a minority stake and are not consolidated. This number includes mainly the Southern Gas Pipeline stake and the Guyana Prokect, as well as other minority investments such as COGA, Chavimochic and Adexus. Exchange rate difference During the year, the Sol has maintained relatively stable resulting in an exchange rate difference of S/. 4.1 MM. Financial Results (Thousands S/.) 3Q2015 3Q2016 Var % Revenues GROSS PROFIT General Expenses Other Operation Expenses Other Expenses Profit from sale of investments in subsidiaries OPERATION INCOME Financial Expenses Participation in Associates Exchange rate difference PRETAX INCOME Taxes Minority interests NET INCOME EBITDA Financial Ratios 3Q2015 3Q2016 Gross Margin Operating Margin Net Margin EBITDA Margin Financial Debt ROE Balance Sheet (Thousands S/.) 3Q2015 3Q2016 Current Assets Non Current Assets Total Assets Current Liabilities Non Current Liabilities Total Liabilities Equity Minority Interests Total Equity Total Liabilities and Equity 5,106,564 5,155,985 3,251,852 4,563,099 8,358,416 9,719,085 3,696,349 3,937,498 1,611,022 2,511,190 5,307,371 6,448,689 2,542,253 2,735,660 508,791 534,736 3,051,044 3,270,396 8,358,416 9,719,085 8.3%10.6% 3.2% 5.6% 0.1% 3.3% 8.6% 13.9% 2,683,750 2,997,204 3.7 3.5 1.6% 6.7% 5,617,905 4,238,328 -24.6% 467,680 450,059 -3.8% (296,611) (289,000)-2.6% 12,262 46,648 280.4% (587) (359) -38.8% (1,165) 31,768 -2826.9% 181,579 239,115 31.7% (34,084) (77,672) 127.9% 21,236 51,741 143.6% (55,093) (4,193)-92.4% 113,638 208,991 83.9% (75,928) (46,905) -38.2% (31,001) (23,444) -24.4% 6,709 138,643 1966.5% 481,394 587,361 22.0%
 

 
Grupo Grana y Montero Consolidated  Results Report -Third  Quarter 2016 Net Income. Consolidated Net  lncome was S/.138.6 MM 3Q2016, equivalent to a 1,966.5% increase compared  to 3Q2015 improving Net margin from 01% to 3.3%  in 3Q2016. This is explained mainly by the sale of TgP in the first quarter of 2016, and the profit from our participation in Gasoducto del Sur Peruano, as well as to better results both in the Engineering and Construction and Real Estate Areas. EBITDA. Cosolidated EBITDA was S/. 587.4 MM in 3Q2016, which represents an increase of 22.0% compared to 3Q2015, explained by the operating results in several Areas, as well as by the sale of TgP . EBITDA Margin in 3Q2016 was 13.9%, higher than the one reported  in 3Q2015. A further detail of the results is described  in the each cf the business segments sections. Stable Cash Flows. Regarding stable long term cash flows, during 3Q2016, 68.4% of tih consolidated EBITIDA was originated from Stable Cash Flow businesses. The EBITDA generated from these businesses alows us to cover the Interest Expenses and General Expenses of the company businesses that not generate cash flows in  1.2 times.
 

 
Grupo Grana y Montero Consolidated Results Report -Third Quarter 2016 Consolidated Results Backlog. Consolidated Backlog (US$ 4,255.4 MM) and recurrent businesses (US$ 529.8 MM) reached a total amount of US$ 4,648.0 MM in the third quarter of 2016 slighly higher then the backlog registered by the end of 2015, reaching a Backlog plus Revenues Ratio of 2.65 times. From the total Backlog of 3Q2016, US$ 451.3 MM will be executed during 2016, US$ 1,654.4 MM in 2017, and U$ 2,119.6 MM in 2018 and the following years. From the recurrent businesses, US$415 MM will be executed during 2016, US$166.9 MM in 2017 and the remainder in the following years. The recurrent businesses are the Oil and Gas segment and the Narvial tolI road are businesses. For further detail of the backlog, please go to the appendix page. Capital Expenditures. Capital expenditures (CAPEX) in 3Q2016 amounted  to S/. 579.4  MM (U$ 170.3 MM). The CAPEX  distribution per Business Segment is as follows;: Infrastructure represents 16%, Engineering ald Construction represents 10%, followed by Technical Services with 8% and finally Real Estate with 0.2%. The remaining of investment corresponds to the contributions made to the Southern Gas Pipeline. Consolidated Backlog (US$ MM) 3Q’15 4Q’15 1Q’16 2Q’16 3Q’16 Backlog Recurrent Businesses Backlog+Recurrent Businesses Ratio 544 448 470 493 530 4,065 4,037 4,034 4,155 4,225 1.93 1.95 2.07 2.37 2.65 Backlog by Business Segment Backlog by Sector Backlog by Type of Client Backlog by Geography 3Q2015 vs. 3Q2016 Technical Services Engineering & Constructions Infrastructure Real Estate 1.3% .% 18 % 65% 17 % 16% 64 % Concessions 15% Public 4% Private 81% 10% 75% Others (Panama, Bolivia, etc.) Chile Colombia Peru 84% 4% 9% 8% 13% 1% 78% Others Minig Projects Mining Services Oil and Gas Electricity Water and Sewage Transport 26% 37% 12% 6% 2% 19% 36% 30% 9% 18%
 

 
Grupo Grana y Montero Consolidated Results Report -Third Quarter 2016 Composition of Indebtedness. Consolidated Financial Gross Debt for 3Q2016 amounted to S/.2,997.2 MM (US$ 880.8 MM). From the total debt, S/. 1,350.6 MM (U$ 396.9 MM) correspond to working capital associated to the clients’  accounts  receivables  and leasings for the acquisition of machinery and equipment, S/. 1,147.6 MM (US$ 337.2 MM) correspond to the debt of infrastructure projects and S/. 499.0 MM (US$ 146.6 MM) correspond to financing the contributions of the Southern Gas Pipeline (GSP). By the md of 3Q2016, the reduction in working capital debt was of US$ 25.0 MM compared to 2015. It is important to mention that the debt figures for 3Q2016 include Adexus' debt, which is being consolidated since August. 0n the other hand, the project debt related to infrastructure businesses is a structured non-recourse debt, with guarantees and cash flows from the project itself. The Debt/Ebitda ratio for this debt is 5.88x. As consequence, Debt/Ebitda ratio for this debt is 3.50x. DEBT  (US$ thousands) 2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 Working Capital + Leasing 361,588 398,651 459,798 525,166 421,550 427,421 386,857 396,888 Project Finance 224,420 297,079 298,386 307,522 302,936 321,330 323,303 337,238 GSP Contribution Financing - - - - 30,113 115,966 116,458 146,627 Total 86,008 695,729 758,184 832,687 754,599 864,717 826,618 880,753 EBITDA (US$ thousands) – LTM 2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 E&C + Real Estate + Technical Services  202,813 182,291 169,397 132,588 140,858 141,138 148,303 169,016 Infrastructure 103,382 95,020 96,992 95,521 87,210 91,556 82,567 82,291 Total 306,195 277,311 266,389 228,110 228,068 232,694 230,870 251,307 RATIOS Debt/Ebitda (E&C + Real Estate + Technical Services) 1.78 2.19 2.71 3.96 2.99 3.03 2.61 2.35 Debt/Ebitda (Infrastructure) 2.17 3.13 3.08 3.22 3.82 4.78 5.33 5.88 Consolidated Debt/Ebitda 1.91 2.51 2.85 3.65 3.31 3.72 3.58 3.50
 

 
Grana y Montero Consolidated Results Report -Third Quarter 2016 Engineering and Construction Revenues 4,241,095 2,714,935 -360% GROSS PROFIT 239,495 190,584 -20.4% The Engineering & Construction Area registered a decrease General Expenses 208,831 (189,780) -9.1% of 36.0% in 3Q2016, compared to the amount reported in Other Operational Expenses  (874)47,037-5483.6% 3Q2015, mainly due the fewer projects under execution Other Expenses 164 - 100.0% GyM, Vial  y Vives-DSD and  Morelco, as well as  to lower Profit from sale of investments in subsidiary OPERATIONAL lNCOME 29,626 0.0% 47.B4l 6Ls" revenues in Stracon GyM. Rn-ancia Expenses (32,069) (29,912)·6.7% Participation in Associates 10,304 12,409 20.4% Exchange rate difference (48,244) 1,722 ·103.6% Gross Proit decreased 20..tfA> . in 3Q2016 in line with the PRETAX INCOME (40,383) 32,060 -179.4" reduction in revenues, v.tiile the margin increased from 5.6°A.  taxes (29,124) (B.238J -54.5% to 7.0% mainly  explained  by positive  results in  G')M  Minority Interests (10.258J 3,585 -134.9% compared t he lases reported in 3Q2016, in spite of NeT Income_    ;1:.7..9...:.7. 6.5...1:2--2=•-4-06 •_28_1- lower results registered inVial yV'rlles- 050 and M>relco. EBITDA156,996 156,949 0.0% Other operational expenses the profit from the sale , of machinery and as well as a price a1jl.6tmentill...._._  ..___. the purchase of Morelco, a reverse of provisions, the  Gross Margin Operating Margin 5.6% 0.7% 7.0% 1.8% extraordinary income from an agreement reached in the Collahuasi Project in Chile. Net Margin EBITDA Margin Financial Debt ·1.9% 3.7% 1,279,282 0.8% 5.8% 840,184 Financial Debt/ EBITDA 4.9 3.3 The decrease in financial expenses  is the result of the ROE -10.8% 4.2% decrease in working capital in the Area. Moreover, the Engineering and Construction Segment registers the profit for the minority participation of GyM in the Guyana project in the line "Participation in Associates". Revenues {Mml of S/.) as of 3Q2016   Ebitda {Mml  of S/.) as of 3Q2016 Net lncome {Mml  of S/.) as of 3Q2016 126 • GM I • GyM • GMI • GYM 2 • GMI • GYM 3Q2015 3Q2016 The exchange rate stability throughout the year has generated a positive impact of S/. 1.7 MM in comparison to the loss of S/. 4.8 MM registered in the 3Q2015. The net result of the area was a profit of S/. 22.4 MM in 3Q2016 which represents a Net Margin of 1-CJ%, higher than the amount registered in 3Q2015. EBITDA was S/. 156.9 MM in 3Q2016, reaching an EBITDA Margin of 5.8% which is higher than the one registered in 3Q2015.
 

 
Grana y Montero Consolidated Results Report -Third Quarter 2016 Capital Expenditures. Capital expenditures (CAPEX ) for 3Q2016 amounted to  S/. 60.6 MM (US$ 7.8 MM), corresponding to machinery for constructionn as well as to the purchase of mining equipment for the mining services contracts. Backlog. The Engjneering and Construction segment reported a Backlog of U$ 3,061.9 MM as of 3Q2016, represents a decrease of 15% compared to the closing of 2015. The main contracts awarded during the year are: the construction contract for the expansion of Line 1 Lima Metro, as well as the awarding of the construction of schools in Columbia, and finally the construction contract for Linea Amarilla. The total Backlog will be executed as follows: US$ 261.9 MM in 2016, US$ 1,183.9 M M in 2017 and US$ 1,635.2 MM in the following years. Backlog (Million of US$) as of 3Q2016 Backlog by type of contract 3Q15 4Q15 1Q16 2Q16 3Q16 Lump Sum 9%
 

Financial Revenues (Thousands S/.) MM in 3Q2016, lower by 10.9% compared to 3Q2016 daily barrels pratucat which increased from 2,824 BPD in 3Q2015 to 2,761 BPD 3Q2016. 01 the other harrl, EllrTDA 220,952 216 ,553 - 2.11% the processing levels at the Panamas Gas Plant increased from  an average of 315 MMCF (mifon cubic feet) in 3Q2015 to 32.8 MMCFin 3Q2016. Additionally, the revenues in the third quarter of 2016 decreased due to lower maintenance works in Survial road. .. II Gross Margin 18.6% 19.8% Operating Margin 14.8% 15.6% Net Margin 7.4% 7.7% EBITDA Margin 28.9% 31.8% Gross Proft was impacted by the decrease in oil price, Financial Debt 991,142 1,147,623 Financial Debt EBITDA 3.2 4. 1 and by the Net results Survial due to  a Net ROE 15.6%!l.1% quantity of maintenance works. -'-"'-"----------------=c="'----"='""" Financial expenses reported in 3Q2016, were lower than the ones reported in 3Q2015. Revenues (M.,n  of S/.) as of 3Q2016 Ebitda (Mn of S/.) as of 3Q2016 Net lncome (of S/ .) as of 3Q2016 66 81 •GyM Ferrovlas La Chira • Canchaque •Survial • Norvial •GMP 3Q2015 3Q2016 3Q2015 302016The impact in exchange differences was lower than 3Q2015, due to the currency stability throughout the year. Net Income was S/. 523 MM, which represents a decrease of 7.3% compared to 3Q2015, explained by the results described above, reaching a Net Margin of 7.7% which was similar to the one registered in 3Q2015. EBITDA for 3Q2016 reached S/. 216.6 MM representing an EBITDA margin of 31.8% which was similar to the one registered in 3Q2015.
 

 
Capital Expenditures. Capital expenditures (CAPEX) for 3Q2016 amounted to a S/. 943 MM (US$ 27.7 MM) corresponding mainly to the construction of  the extension of the Norvial toll road Backlog. The Infrastructure Area reported a Backlog of US$ 231.4 MM as of 3Q2016, and a total of US$ 529.8 MM of recurrent businesses. Backlog (Million of US$) a of 3Q2016 The total Backlog of the Infrastructure Segment will be executed as follows: US$ 18.4 MM in 2016, US$ 81.7 MM in 2017and US$ 131.4 MM in the following years. 544 448 470 492 530 On the other hand, the recurrent businesses  will be executed  as follows: US$ 415 MM in 2016, US$ 166.9 MM in 2017 and the remaining amount from 2018 and forward. 261 256 234 238 145
 

 
Real Estate Revenues GROSS PROFIT 75,121 26,620 138,863 38,637 84.9" 45.1% Revenues in the Real Estate Area increased in 849%, General Expenses (15,024) (14,779) -1.6% mainly due to the sale of land from Almonte, as weII as to Other Operational Expenses  1,038 707 -31.9% a  higher quantity  of  delivered  housing units which Other Expenses 0.0% increased from 75 units in 3Q2015 to 179 units in 3Ql016. Profit from sale of investments in subsidiaries 0.0% OPERATIONAL  INCOME 12,635 24,566 94.4% Financial Expenses (6,133) (7,455) 21.6% There are a total  of 21 projects under development, Participation in Associates 9,826 2,022-79.4% within which the main ones in housing segment are: Exchange rate difference (1,846)(1,000)-45.8% Parques del Callao, Parque Comas, El Nuevo Rancho _PRETAX INCOME 14,48218 ,13325.2% Project, and a building named Klimt in San lsidro. In the Taxes Minority lnterests office segment, Real  Dos offices and Panorama are also  INCOME under execution.  A total of 81% of the projects are been executed in Lima, whilst 39,453  71 ,11 5  803% whilst19%of than are been executed in other provinces ....---------------. ....------..... of Peru.  I.(_  .The increase in Operational lncome is main explained 'BI 11{ the profit generated from the sale d land from Alrnonte, as well to the the her number of delivered units, and a reduction in the General Expenses. The impact in exchange rate difference was lower than last year, due to the currency stability during 2016. Gross Margin Operating Margin Net Margin EBITDA Margin Financial  Debi Financial Debt/ EBITDA ROE 35A% 27.8% 16.8% 17.7% 5.8% 2.7% 525% 51.2% 234,553230,598 3.3 1.8 3.0% 2.3% The Net Income increased in comparison to 302015, and registered S/.3.8 l'v?v1in 3Q2016 with a net margin of 2.7%. Revenues (Million of S/.) as of 3Q2016 Ebitda (Mmon of S/.) as of 3Q2016 Net lncome (MM S/.) as  of 3Q2016 •1S 1'19 H Sold Housing units Unit EBITDA was S/.71.1l'v?v1i n 3Q2016,....which was higher by8J.30.tbthan the one registered in 3Q2015 reaching an EBITDA Margin of 51.2°...6 which is similar to the one registered in 302015.
 

 
Capital Expenditures. Capital Expenditures (CAPEX ) in the first semester of 2016 amounted to S/. 1.3 MM. Backlog. The Real Estate Segment reported a Backlog of US$ 145.1 MM as of 3Q2016. The main projects included in the Backlog are El Rancho, Klimt building in San lsidro, Parque Comas, Real 2 Offices, within others. Backlog (Million of US$) as of 3Q2016 157 The total  Backlog of the Real  Estate Segment wilI  be executed as follows: US$ 71.1 MM in 2016, US$ 71.1 MM in  2017 and the rest in the remaining years.
 

 
Grana y Montero Consolidated Results Report -Third Quarter 2016 Revenues for the Technical Services Segment in 3Q2016 were S/ . 993. Which is by 17.6% than the ones registered in 3Q2015, mainly explained by a higher volume of operations in Chile, as well as by the consolidation of Adexus since August. Gross Profit increased by 18.9% in line with the increase in revenues. Revenues GROSS PROFIT General Expenses Other Operational Expenses Other Expenses Profit from sale of investments in subsidiaries OPERATIONAL INCOME Financial Expenses Participation in Associates Exchange rate difference PRETAX INCOME Taxes 844,588993;08717.6% 117,504139,69918.9% (78,984) (77,486) -1.9" 8,388 3,116  -62.9" 168 41 -75.5% (1,165) -100.0% 45,911  56;902  23.9% {14,319}  (17,817}  24.4% (17)  .459 -2800.0% (9,177) -422 -104.6% 22,399 39;966 78A% (10,361)  (13,799) 33.2% In addition, the “Other Operational Expenses" account Minority lnterests  (324) (2,156)  565.9" Includes the  reversion  of  Iiabilities;  related  to  the NET INCOME -- 11,71-4  -24;011  -105.0% acquisition of CAM. EBITDA 77,012 98,589  28.0% The Financial Expenses increased by 24.4% in comparison to 3Q2015 a; a consequence of the increase in debt of the  11 period, mainly due to the consolidation Gross_Margin ---------..   _ 13.9% 14.1% The Operational lncome increased from Sf .45 9 MM to 5/. 56.9  MM reaching Operating Margin of 23.9%,which is higher than the one registered in 3Q2ffi5. The minority participation of CAM in projects that are not consolidated are reported in the fine "Participation i1 Associates". Operating Margin Net Margin EBITDA Margin Financial Debt Financial Debt/EBITDA ROE 5A%5.7% 1.4%2.4% 9.1%9.9% 178,774279,825 1.81.4 9.0%-7.7% Revenues (Mm-I of S/.) as of 30,2016 Ebitda (M.,., of S/.) as of 30,2016 Net lncome(M.,., of S/.) as of 3Q2016 •  29 416  531 CAM  CAM •  Adexus • Adexus CAM  concar • Adexus • GMO •  GMO  •  GMO  3Q2015  3Q2016 3Q2015  3Q2016 3Q2015  3Q2016 The impact in exchange rate difference reflects a profit of 5f.0.4 MM unlike the loss registered in the 3Q20 15,due to the currency stability throughout 2016. Net income for the third quarter of 2ffi6 v.es 5/.24.0 MM, higher compared to 302015main die to a recovery i1GMO and CAM. EBITDA in 3Q2016 was Sf .98.6 MM, with an EBITDA Margin of 99%.
 

 
Grana y Montero Consolidated Results Report -Third Quarter 2016 Capital Expenditures Capital Expenditures (CAPEX) in 3Q2016 amounted to S/. 44.4 MM (US$ 13.1 MM), which mainly corresponds to the electric services and information technology businesses. Backlog. The Technical Segment reported a Backlog of Backlog (of US$) US$  837.7  MM  as  of  3Q2016.  The  main  contracts awarded during 2016 were for the services of comprehensive operations for Edelnor for US$ 48.0 MM, as well as an electrical services contract for Electricaribe for US$ 63.0 MM and finally the contract for the service management and road maintenance of Chuqibambilla  and Chinchaypuijio  for  U$ 99.6MM. The total Backlog of the Technical Services Segment will be executed as follows: U$ 107.9  MM in 2016,  U$ 340.1 MM in 2017 and the remaining in the following years.
 

 
Engineering & Construction Infrastructure Real Estate Technical Services Balance Sheet GYM GMI GMP NORVIAL  SURVIAL  CANCH  GYM FERROVIAS  LA CHIRA  Viva GyM  GMD  ADEXUS  CONCAR  CAM  HOLD SPA Cash and Cash Equivalents  158,555  1,160 24,291 97,966 7,173 3,819 147,743 10,483 83,570 9,414 6,366 7,941 10,559  Other Current Assets2,433,927 49,741 127,469 15,119 31,358 2,663 107,204 10,747 1,065,771 120,115 149,760 174,399 290,644 Current Assets 2,592,482  50,901 151,760 113,085 38,531  6,482  254,947  21,230  1,149,341  129,529  156,126  182,340  301,203 Non Current Assets   1,144,377   13,929   379,313   464,992   11,168 939 868,626 9,906 88,984 114,214 184,583 33,130 133,073
Total Assets 3,736,859  64,830  531,073 578,077 49,699   7,421   1,123,573   31,136   1,238,324   243,743   340,708   215,470   434,276 - Borrowings 587,342 2,726 84,452   67             -             -             -   -   214,089   36,240   67,978   14,075   70,100 Other Current Liabilities  1,842,114 28,459  58,743 48,428   10,615   1,536   61,814   3,630   401,412   117,102   117,684   96,986   169,605 Current Liabilities  2,429,456 31,185 143,195  48,495 10,615   1,536   61,814   3,630   615,501   153,342   185,661   111,061   239,705 Borrowings  249,773  343  91,120  0  0  0  0 0 16,509 14,287 32,415 1,362 36,772 Other Non Current Liabilities 188,367 0  13,409 344,149  0  493  931,388  23,699  50,642  15,804  31,948  37,747  59,217 Non Current Liabilities  438,140  343  104,529  344,149  -   493   931,388   23,699   67,151   30,091   64,362   39,109   95,989 Total Liabilities   2,867,596   31,528   247,724   392,644   10,615   2,029 993,202 27,329 682,652 183,433 250,024 150,170 335,694 Equity attributable to controlling interest in the Company 716,733 29,773   262,305   124,240   39,080   5,390   97,778   3,807   216,080   52,817   82,550   65,135   65,763 Non-controlling Interest  152,529    3,529  21,044   61,193   4   2   32,593   -   339,591   7,492   8,134   165   32,819 Total Equity 869,262  33,302  283,349  185,433  39,084   5,392   130,371   3,807   555,671   60,310   90,685   65,300   98,582 Total Liabilities and Equity 3,736,859  64,830 531,073                           578,077  49,699   7,421   1,123,573   31,136   1,238,324   243,743   340,708   215,470   434,276 Engineering & Construction Infrastructure  Real Estate  Technical Services Financial Results                        (Thousands of S/.)   GYM  GMI  GMP NORVIAL  SURVIAL  CANCH  GYM FERROVIAS  LA CHIRA  Viva GyM  GMD  ADEXUS  CONCAR  CAM HOLD SPA Revenues 2,627,691                           87,244  277,452   176,900  20,868  6,569 174,750  17,629   138,863   198,066   45,908   217,691   482,450 GROSS PROFIT 175,897 14,687  31,120  53,747 (3,670)   3,360   43,481   5,764   38,637   31,636   6,911   42,723   57,684 General Expenses  (178,328)  (11,452)  (10,749) (4,039)  (1,753)   (1,401)   (8,372)   (546)   (14,779)   (18,087)   (8,559)   (18,425)   (36,649) Other Operational Expenses 46,636                           401 (1,944)  110  (1)   -   (2)   -   707   77   (88)   49   3,111 Profit from sale of investment   -             -                           -             -             -             -             -   -   -   -   -   -   - OPERATIONAL INCOME  44,205 3,636 18,427 ,818   (5,424)   1,959   35,107   5,219   24,566   13,626   (1,717)   24,347   24,146 Financial Expenses (29,361) (551) (5,370)  (2,414)  (69) (42)   636   89   (7,455)   (6,927)   (2,314)   45   (8,249) Participation in Associates  12,409   -  1,282 -    -   -   -   -   2,022   -   -   -   459 Exchange rate difference 1,964 (242) 153 (75)  (325)   (68)  1,782   (20)   (1,000)   (972)   (746)   153   2,092 PRETAX INCOME 29,217 2,843 14,492  47,329 5,818)   1,849   37,525   5,287   18,133   5,727   (4,777)   24,545   18,448 Taxes  (12,298)  (940)  (3,962)  (12,481)  1,666   (528)  (11,325)   (1,481)   (4,610)   (2,329)   3,954   (7,833)   (8,513) Minority Interests 3,789 (204)   (2,820) (11,500)  0 (1)   (6,550)   -   (9,787)   (371)   74   281   (3,013) NET INCOME 20,708  1,699 7,710   23,348 (4,152)   1,320   19,650   3,807   3,736   3,027   (749)   16,993   6,922 Amortization 6,364 872 32,867 8,005  0  0   31     157  6,737  2,009  380  3,260 Depreciation 88,127 1,337  22,295 149   125 20  23  1  3,983  11,716  2,462  4,082  10,033 EBITDA 151,104 5,845      74,871 57,972  (5,299)   1,979   80,914   5,220   71,115   32,079   2,754   28,809   34,947
 

 
Company Initial Backlog Executed Backlog New Requests Total Backlog Annual Backlog Inicial Ejecutado TOTAL  1Q – 2016 2Q – 2016 3Q - 2016  Total 2016 2017 2018+ GyM 1,734,335  357,514 443,736 48,837 286,062  108,836  1,820,557  137,072  832,552  850,933 STRACON GYM 1,147,838273,89430,8847,11011,87311,901904,82767,092219,783 617,953 VyV-DSD37,83148,61569,1587,932-2,51563,74158,37410,79647,5780 MORELCO   163,804   61,071 155,712 663 96,089 58,959  258,445  35,672 65,644  157,129 CAM PERU  11,362  13,735  4,991  3,871  1,356  -237  2,617  2,127  333 157 GMI  34,261  25,637  27,565 5,301 13,453   8,811  36,189  9,115  18,048  9,027 ENGINEERING & CONSTRUCTION  3,129,431  780,466  732,045  73,714  406,318 252,012 3,081,010  261,874  1,183,937  1,635,199 SURVIAL  24,205  6,132  6,5102,263 2,1342,11224,5832,0608,14614,377 CANCHAQUE15,2271,9301,658686594 378 14,95562610,2324,097 LA CHIRA5,3085,1802,838-1,1973,1788572,965387 998 1,581 LINEA 1 METRO DE LIMA211,75851,35228,529-4,16423,1129,581188,935 15,318 62,273111,344 INFRASTRUCTURE256,49864,59539,534-2,41229,01812,928 231,438 18,39181,648131,399 VIVA GYM111,03840,80674,93145,16018,41211,359 145,163 71,12771,1362,901 REAL ESTATE111,03840,80674,93145,16018,41211,359 145,163 71,12771,1362,901 GMD119,42758,20366,72224,43320,20422,086127,946 23,756 52,61451,576 ADEXUS013,49181,9700081,97068,47911,47925,49131,509 CONCAR 128,742  63,970 130,733  117,193 7,324            6,216            195,505 11,892 93,608  90,005 CAM  364,867  156,163  237,067  172,500  12,813  51,754 445,771  60,806  168,379  216,586 TECHNICAL SERVICES  613,036  291,827 516,493  314,12640,341162,026837,701107,933340,093 389,676 Eliminations-72,196-32,975-30,732-36,6933,3292,632-69,952-7,990-22,436-39,527 TOTAL 4,037,807  1,144,718 1,332,272 393,896 497,419 440,957 4,225,360  451,335  1,654,378  2,119,647   4,295,312   Recurrent Businesses Company  Initial  Executed New Requests   Total Annual Inicial Ejecutado    TOTAL  1Q - 2016  2Q - 2016   3Q - 2016    Total 2016  2017 2018+ GMP  327,080  81,532  103,644  18,586  55,699  29,359  349,193  29,178 94,867  225,148 NORVIAL  147,274  51,984  109,534  46,609  11,107  51,818 204,824 13,26280,399111,164 Eliminations-26,117-32,765-30,908-10,657-444-19,806-24,260-940 -8,352-14,969 TOTAL448,237100,750182,27054,53866,36261,370 529,757 41,500166,914321,343 TOTAL4,486,0441,245,4681,514,541448,434 563,780502,3274,755,117492,8351,821,2922,440,990
 

 
Appendix: Corporate Structure Figures in Thousands of S/. Grupo Grana y Montero Engineering & Construction Infrastructure Real Estate Technical Services GyM Construction Services STRACON Contract Mining Services Engineering and Constructions services in Chile Engineering services Morelco Vial y Vives DSD GMI Engineering and Constructions services for Oil & Gas Industry in Colombia 98.23% 87.59% 80.79% 89.40% 70.00% Norvial Survial Canchaque Ferrovias Chira GMP Vesur Coga Almonte Viva GMD Concar CAM Real Estate Development Land parcels 90.54% 50.4% Toll-road concession Mass transit system concession Water plant concession O&G production, gas processing & fuel storage highway concession Operation and maintenance of gas pipelines 87.0% 99.9% 75.0%50.0% 95.0% 100.0% 51.0% IT services Operation and maintenance of infrastructure assets Electricity networks services 89.37% 99.6% 75.0% 52.0%
 

 
Grupo Grana y Montero Consolidated Results Report -Third Quarter 2016 Appendix: Notes to the Consolidated Results i)  EBITDA As of the information reported in the prospectus regarding the shares issuance registered before the SEC, the international market practice for the EBITDA calculation has been  adopted. The EBITDA calculation will start from the net income, figure to which the taxes, exchange rate differences and interests expenses will be  returned  to, whist the depreciation and amortization will be added. We previously  reported  the  EBITDA  calculated as operational  income plus depreciation  and amortization. As mentioned on the Consolidated Results Report for the third quarter of 2013, we will report EBITDA calculated as follows: Real Estate EBITDA: the proportional part of the land component of the units delivered during the period, will be added: Metro de Lina EBITDA: the financial expenses considered, as well as the capital amortization applied to the corresponding long-term account receivable during the period, will be added.  ii)Backlog As of the information reported in the prospectus regarding the shares issuance registered before the SEC, the reporting method of the company’s Backlog will have modifications in the Infrastructure and Real Estate segments according to what is following described. Engineering and Construction and Technical Services will continue to report their backlog according to the local market, therefore the total signed contracts will be reported. Infrastructure: the Oil & Gas business and the Norvial toll road are not included as backlog Real Estate: only the sold units which are pending of delivery are reported as backlog iii)ROE For the ROE calculation in the intermediate quarters, the net profit considered is the one for the last twelve months (LTM) (LTM  Net Profit divided by Total Equity) iv)Gross Debt I EBRDA ratio For the Gross  Debt/Ebitda  ratio calculation, the EBITDA considered  is the one for the last twelve months (LTM) (Gross Debt divided by (LTM EBIIDA)  v)Net Debt I EBRDA ratio For the Net Debt/Ebitda  ratio calculation, the EBITDA  considered  is the one for the last twelve months  (LTM) (Net debt, equal to Gross Debt min us Cash, divided by LTM EBITDA)


/s/ Claudia Drago Morante
___________________________
Claudia Drago Morante
Stock Market Representative
Graña y Montero S.A.A.


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


GRAÑA Y MONTERO S.A.A.




By: /s/ CLAUDIA DRAGO MORANTE

Name: Claudia Drago Morante

Title: Stock Market Representative

October 31, 2016