37	DISCONTINUED OPERATIONS AND NON-CURRENT ASSET CLASSIFIED AS HELD FOR SALE

As part of the non-strategic asset divestment process initiated by the Company in 2017 with the sale of GMD S.A., in 2018, CAM Servicios del Peru S.A. and CAM Chile S.A., and Stracon GyM S.A. were sold (“completed”).

Additionally, information is presented on Adexus S.A., a subsidiary that has been reclassified as a non-current asset available for sale (“planned”) as of December 31, 2018 (Note 38-b).

Discontinued operations

i) CAM Servicios del Peru S.A. and CAM Chile S.A.

On December 4, 2018, the Company entered into a purchase and sale agreement for all of its shares (representing 73.16%) of CAM Servicios del Peru S.A. and CAM Chile S.A. The Group received for its participation in CAM Chile S.A. and CAM Servicios del Peru S.A. the sum of (i) US$15.78 million (equivalent to S/51.7 million) for the shares of CAM Chile S.A. and (ii) US$3.0 million (equivalent to S/10.4 million) for the shares of CAM Servicios del Peru S.A., respectively. The net gain on the sale of both subsidiaries amounted to S/31.7 million.

ii) STRACON GyM S.A.

On March 28, 2018, the Company entered into a purchase and sale agreement for all of its shares (representing 87.59%) in STRACON GyM S.A. The sale price was agreed in US$76.8 million (equivalent to S/248.8 million), which is fully paid. The net gain on the sale amounted to S/41.9 million.

iii) GMD S.A.

On June 6, 2017, the Company entered into a sales contract for all of its shares (representing 89.19%) in GMD S.A. The sales price was agreed at US$84.7 million (equivalent to S/269.9 million), which is fully paid. The net gain on the sale amounted to S/218.3 million (US$64.6 million approximately).

Non-current asset classified as held for sale

At December 31, 2018, non-current assets and liabilities held for sale correspond to investments in the company Adexus S.A., whose main activity is to provide information technology solutions mainly in Chile and Peru. Account balances are classified as assets held for sale taking into account that the Group has a sales plan defined within the next 12 months.


	At December 31, 2018 Adexus S.A.
	(planned)
Assets
Cash and cash equivalents		6,074
Trade accounts receivables, net		157,351
Inventories, net		3,999
Other accounts receivable		80,374

Total assets		247,798

Liabilities
Other accounts payable		71,810
Accounts payable		148,817
Deferred income tax liabilities		5,201

Total liabilities		225,828

Total net assets		21,970

As of December 31, 2017, this item includes Red Eagle Mining Corporation investment representing 6.18% of shares. In January and March 2018, the Company sold the total of its shares. The sale price was agreed at US$3.99 million (equivalent to S/16.24 million), which were paid in full.

Consolidated statement of income and consolidated cash flow

The Company reclassified financial results and present cash flow of discontinued operations, GMD S.A., Stracon GyM S.A., CAM Servicios del Peru S.A., CAM Chile S.A. (completed) and Adexus S.A. (planned) for 2016 and 2017 as follows:


	Reclassification
	2016			discontinued operations						2016
	Audited			Completed			Planned			Reclassified
Revenues		6,190,317			(1,939,983	)		(113,025	)		4,137,309
Operating costs		(5,633,022	)		1,714,498			97,304			(3,821,220	)

Gross profit (loss)		557,295			(225,485	)		(15,721	)		316,089

Administrative expenses		(382,393	)		87,855			16,235			(278,303	)
Other (expenses) income, net		(13,374	)		(9,162	)		176			(22,360	)
Gain from the sale of investments		46,336			—			—			46,336

Operating profit (loss)		207,864			(146,792	)		690			61,762

Financial expenses		(221,664	)		18,384			5,225			(198,055	)
Financial income		20,645			(2,420	)		—			18,225

Share of the profit or loss in associates and joint ventures		(589,710	)		(356	)		—			(590,066	)

(Loss) profit before income tax		(582,865	)		(131,184	)		5,915			(708,134	)
Income tax		119,272			34,772			(1,862	)		152,182

(Loss) profit from continuing operations		(463,593	)		(96,412	)		4,053			(555,952	)

Profit (loss) from discontinued operations		11,995			96,412			(4,053	)		104,354

Loss of the year		(451,598	)								(451,598	)

(Loss) earnings per share from continuing operations attributable to owners of the company during the year		(0.790	)								(0.916	)


	Discontinued operations
	Completed			Planned
Cash flows relating to the discontinued operations are as follows:

Operating cash flows		125,048			39,318
Investing cash flows		(73,127	)		17,639
Financing cash flows		(111,303	)		66,886

Net increase generated in subsidiary		(59,382	)		123,843


	Reclassification
	2017			discontinued operations						2017
	Restated (i)			Completed			Planned			Reclassified
Revenues		6,080,142			(1,782,105	)		(284,024	)		4,014,013
Operating costs		(5,407,355	)		1,656,114			239,680			(3,511,561	)

Gross profit (loss)		672,787			(125,991	)		(44,344	)		502,452

Administrative expenses		(429,181	)		73,966			32,761			(322,454	)
Other (expenses) income, net		(20,545	)		(13,159	)		835			(32,869	)
Gain (loss) from the sale of investments		56,099			(21,554	)		—			34,545

Operating profit (loss)		279,160			(86,738	)		(10,748	)		181,674

Financial expenses		(185,445	)		23,913			10,755			(150,777	)
Financial income		15,407			(1,401	)		(264	)		13,742

Share of the profit or loss in associates and joint ventures		1,327			(854	)		—			473

Profit (loss) before income tax		110,449			(65,080	)		(257	)		45,112
Income tax		(59,097	)		12,939			(147	)		(46,305	)

Profit (loss) from continuing operations		51,352			(52,141	)		(404	)		(1,193	)

Profit from discontinued operations		157,886			52,141			404			210,431

Profit of the year		209,238									209,238

(Loss) earnings per share from continuing operations attributable to owners of the company during the year		(0.014	)								(0.101	)

(i)	See Nota 2.31


	Discontinued operations
	Completed			Planned
Cash flows relating to the discontinued operations are as follows:

Operating cash flows		149,687			6,083
Investing cash flows		(10,377	)		(19,570	)
Financing cash flows		(136,165	)		14,059

Net increase generated in subsidiary		3,145			572

Discontinued operations as at December 31, 2018 are as follows:


	Discontinued operations
	Grupo CAM and Stracon GyM			Adexus S.A.
	(Completed)			(Planned)
Revenues		1,010,739			302,936
Operating costs		(968,375	)		(263,455	)

Gross profit		42,364			39,481

Administrative expenses		(56,950	)		(32,730	)
Other (expenses) income, net		860			(4,519	)

Operating (loss) profit		(13,726	)		2,232

Financial expenses		(19,971	)		(12,786	)
Financial income		6,253			611

Loss before income tax		(27,444	)		(9,943	)
Income tax		7,112			2,325

Loss from discontinued operations		(20,332	)		(7,618	)


Cash flows relating to the discontinued operations are as follows:

Operating cash flows		6,967			36,450
Investing cash flows		(11,474	)		(18,141	)
Financing cash flows		526			(21,422	)

Net increase generated in subsidiary		(3,981	)		(3,113	)