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Operating Segments
 12 Months Ended
Dec. 31, 2023
Operating Segments [Abstract]  
Operating Segments
7.Operating Segments

 

A.Basis of Segmentation

 

The Corporation has four strategic division, which are its reportable segments. These reportable segments offer different products and services, and are managed separately because they require different business strategies.

 

Separate financial information is available for the reportable segments that are regularly evaluated by the Executive Committee (Chief operating decision maker, “CODM”) which is led by the Corporate General Manager, in deciding how to allocate resources and assess performance.

 

Reportable segments are reported consistently with the internal reports that are reviewed by the Executive Committee. This Committee acts as the maximum authority in operation decision making and is responsible for allocated resources and assessing the performance of each operating segments.

 

The Corporation’s reporting segments are: (i) engineering and construction, (ii) energy, (iii) infrastructure, and (iv) real estate.

 

Corporation’s sales and accounts receivable are not concentrated in a few customers. There are no external customers representing 10% or more of the Corporation’s revenue.

  

B.Information on reportable segments

 

The operations of Corporation in each reportable segment are as follows:

 

(a)Engineering and construction: traditional engineering services such as architectural planning, structural, civil and design engineering for advanced specialties including process design, simulation, and environmental services, as well as construction services related to: i) civil works, such as the construction of hydroelectric power stations and other large infrastructure facilities; (ii) electromechanical construction, such as concentrator plants, oil and natural gas pipelines, and electric transmission lines; iii) building construction, such as offices, residential buildings, hotels, and affordable housing projects, shopping centers, and industrial facilities.

 

This reportable segment is mainly comprised by the companies Cumbra Peru S.A. and Cumbra Ingenieria S.A. (located in Peru), Vial y Vives D.S.D. (located in Chile) and Morelco S.A. (located in Colombia). These companies are engaged in engineering and construction services and subjected to the execution of contracts and compliance of the regulations applicable to the engineering and construction industry. These construction companies can execute projects in similar countries in South America (Peru, Chile and Colombia).

 

(b)Energy: oil exploration, exploitation, production, treatment, and trade of oil, separation and trade of natural gas and its byproducts at the gas processing plant, as well as the construction and assembly of oil facilities or those linked to the oil and gas industry and the storage and dispatch of fuel and oil by products.

 

(c)Infrastructure: long-term concessions or similar contractual arrangements in Peru for three different operating segments (i) toll roads, (ii) transportation, and (iii) water treatment, which are presented as the infrastructure reportable segment. This segment executes the operation and maintenance services for its assets.

 

(d)Real Estate: develops and sales properties to low and middle-income, which are experiencing a significant increase in available income, and also luxury properties to a lesser degree, as well as the development of commercial and office space.

 

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

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
and other entities		   Eliminations   Consolidated 
As of December 31, 2022                                    
Assets                                    
Cash and cash equivalents  209,737   104,553   130,213   171,747   2,910   111,487   186,907  
-
   917,554 
Trade accounts receivables, net   697,512    80,245    34,183    118,867    898    146,316    561    
-
    1,078,582 
Accounts receivable from related parties   86,146    68    51,523    4,455    52    378    115,736    (230,613)   27,745 
Other accounts receivable, net   298,784    39,921    28,902    15,229    30    5,380    7,294    (2,345)   393,195 
Inventories, net   41,933    29,935    9,655    39,780    
-
    227,067    
-
    (1,587)   346,783 
Prepaid expenses   10,945    2,055    5,496    369    160    448    8,625    
-
    28,098 
Total current assets   1,345,057    256,777    259,972    350,447    4,050    491,076    319,123    (234,545)   2,791,957 
Trade accounts receivable, net   2,806    
-
    16,215    699,487    1,392    3,969    
-
    
-
    723,869 
Accounts receivable from related parties   299,268    
-
    15,858    42    14,015    
-
    602,004    (388,795)   542,392 
Prepaid expenses   
-
    826    14,549    1,731    632    
-
    65    (510)   17,293 
Other accounts receivable, net   101,366    89,782    
-
    
-
    7,346    55,347    31,889    
-
    285,730 
Inventories, net   
-
    
-
    
-
    
-
    
-
    65,553    
-
    
-
    65,553 
Investments in associates and joint ventures   975    12,049    
-
    
-
    
-
    2,752    1,509,790    (1,510,650)   14,916 
Investment property, net   
-
    
-
    
-
    1,507    
-
    19,823    40,594    
-
    61,924 
Property, plant and equipment, net   102,822    176,596    6,193    848    150    7,531    1,286    (10,961)   284,465 
Intangible assets and goodwill, net   131,431    363,066    274,597    238    
-
    615    13,414    3,975    787,336 
Right-of-use assets, net   8,745    12,795    7,106    23    143    2,580    38,485    (19,670)   50,207 
Deferred tax asset   175,702    4,572    26,787    
-
    415    23,781    59,316    5,065    295,638 
Total non-current assets   823,115    659,686    361,305    703,876    24,093    181,951    2,296,843    (1,921,546)   3,129,323 
Total assets   2,168,172    916,463    621,277    1,054,323    28,143    673,027    2,615,966    (2,156,091)   5,921,280 

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
and other entities		   Eliminations   Consolidated 
As of December 31, 2022                                    
Liabilities                                             
Borrowings   19,191    38,612    3,844    17    6    43,118    480,735    (11,261)   574,262 
Bonds   4,554    
-
    41,343    31,203    
-
    
-
    
-
    
-
    77,100 
Trade accounts payable   740,142    124,259    52,916    52,292    223    35,939    16,950    4,535    1,027,256 
Accounts payable to related parties   297,505    2,734    46,257    22,421    296    12,227    20,291    (348,243)   53,488 
Current income tax   12,495    247    8,609    2,433    104    45,092    672    
-
    69,652 
Other accounts payable   490,494    19,724    49,187    9,146    1,298    115,661    24,837    (4,905)   705,442 
Provisions   81,288    20,535    1,722    1,197    
-
    540    27,644    
-
    132,926 
Total current liabilities   1,645,669    206,111    203,878    118,709    1,927    252,577    571,129    (359,874)   2,640,126 
Borrowings   6,480    100,597    3,462    
-
    138    10,852    192,435    (8,333)   305,631 
Bonds   16,719    
-
    177,341    598,753    
-
    
-
    
-
    
-
    792,813 
Trade accounts payable   
-
    
-
    
-
    9,757    
-
    
-
    
-
    
-
    9,757 
Other accounts payable   94,261    
-
    2,243    189    2,932    
-
    2,694    
-
    102,319 
Accounts payable to related parties   7,886    57,300    1,176    27,294    21,663    
-
    189,451    (277,477)   27,293 
Provisions   11,453    49,701    11,463    4,947    
-
    
-
    491,463    
-
    569,027 
Deferred tax liability   16,670    53,242    
-
    58,396    
-
    
-
    
-
    
-
    128,308 
Total non-current liabilities   153,469    260,840    195,685    699,336    24,733    10,852    876,043    (285,810)   1,935,148 
Total liabilities   1,799,138    466,951    399,563    818,045    26,660    263,429    1,447,172    (645,684)   4,575,274 
Equity attributable to owners of the Company   363,404    417,970    166,678    177,208    1,483    278,501    1,165,811    (1,509,551)   1,061,504 
Non-controlling interest   5,630    31,542    55,036    59,070    
-
    131,097    2,983    (856)   284,502 
Total liabilities and equity   2,168,172    916,463    621,277    1,054,323    28,143    673,027    2,615,966    (2,156,091)   5,921,280 

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
and other entities		   Eliminations   Consolidated 
As of December 31, 2023                                    
Assets                                    
Cash and cash equivalents   342,120    40,707    124,283    134,252    3,235    175,920    183,371    
-
    1,003,888 
Trade accounts receivables, net   783,231    119,948    26,353    127,336    943    3,038    952    
-
    1,061,801 
Accounts receivable from related parties   57,024    642    59,279    3,569    643    406    161,430    (267,550)   15,443 
Other accounts receivable, net   265,378    40,298    21,101    6,372    1    10,418    6,849    (2,345)   348,072 
Inventories, net   51,108    46,064    6,760    43,993    
-
    212,582    
-
    (10)   360,497 
Prepaid expenses   15,461    2,022    4,651    334    169    71    6,388    2    29,098 
Total current assets   1,514,322    249,681    242,427    315,856    4,991    402,435    358,990    (269,903)   2,818,799 
Long-term trade accounts receivable, net   744    
-
    6,430    756,990    1,453    3,354    
-
    
-
    768,971 
Long-term accounts receivable from related parties   298,946    
-
    17,157    42    14,015    
-
    419,282    (221,157)   528,285 
Prepaid expenses   
-
    480    11,920    1,611    580    
-
    
-
    (510)   14,081 
Other accounts receivable, net   102,250    77,116    
-
    
-
    7,346    59,764    64,928    
-
    311,404 
Inventories, net   
-
    
-
    
-
    
-
    
-
    70,282    
-
    
-
    70,282 
Investments in associates and joint ventures   968    10,536    
-
    
-
    
-
    2,103    1,737,129    (1,737,989)   12,747 
Investment property, net   
-
    
-
    
-
    1,427    
-
    18,203    38,630    
-
    58,260 
Property, plant and equipment, net   83,146    211,127    5,187    1,047    233    5,562    863    
-
    307,165 
Intangible assets and goodwill, net   143,228    370,370    225,363    138    
-
    617    12,740    
-
    752,456 
Right-of-use assets, net   4,874    8,270    3,226    25    122    1,317    28,700    (10,239)   36,295 
Deferred tax asset  153,841   5,142   24,098  
-
  421   15,577   56,670   14   255,763 
Total non-current assets   787,997    683,041    293,381    761,280    24,170    176,779    2,358,942    (1,969,881)   3,115,709 
Total assets   2,302,319    932,722    535,808    1,077,136    29,161    579,214    2,717,932    (2,239,784)   5,934,508 

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
and other entities		   Eliminations   Consolidated 
Liabilities                                             
Borrowings   24,081    39,052    15,358    26    5    11,618    437,729    (11,840)   516,029 
Bonds   3,611    
-
    49,369    28,558    
-
    
-
    
-
    
-
    81,538 
Trade accounts payable   928,109    111,816    48,232    38,272    121    21,622    16,094    
-
    1,164,266 
Accounts payable to related parties   78,561    80,357    47,599    69,632    7    10,990    17,154    (259,928)   44,372 
Current income tax   19,370    677    3,159    13,160    54    323    1,655    
-
    38,398 
Other accounts payable   416,927    26,122    34,045    10,429    1,167    86,968    33,170    
-
    608,828 
Provisions   83,831    20,215    1,171    1,925    
-
    193    9,751    
-
    117,086 
Total current liabilities   1,554,490    278,239    198,933    162,002    1,354    131,714    515,553    (271,768)   2,570,517 
Borrowings   697    84,989    594    
-
    123    73,058    147,399    (182)   306,678 
Bonds   10,834    
-
    130,750    599,803    
-
    
-
    
-
    
-
    741,387 
Trade accounts payable   
-
    
-
    
-
    4,001    
-
    
-
    
-
    
-
    4,001 
Other accounts payable   47,984    
-
    493    161    3,141    
-
    457,532    
-
    509,311 
Accounts payable to related parties   7,481    
-
    1,226    28,563    23,146    
-
    197,485    (229,337)   28,564 
Provisions   12,366    46,287    10,002    2,228    
-
    
-
    27,184    
-
    98,067 
Deferred tax liability   58,804    66,415    
-
    63,473    
-
    
-
    2    
-
    188,694 
Total non-current liabilities   138,166    197,691    143,065    698,229    26,410    73,058    829,602    (229,519)   1,876,702 
Total liabilities   1,692,656    475,930    341,998    860,231    27,764    204,772    1,345,155    (501,287)   4,447,219 
Equity attributable to owners of the Company   604,039    424,874    146,259    162,680    1,397    289,942    1,369,744    (1,736,558)   1,262,377 
Non-controlling interest   5,624    31,918    47,551    54,225    
-
    84,500    3,033    (1,939)   224,912 
Total liabilities and equity   2,302,319    932,722    535,808    1,077,136    29,161    579,214    2,717,932    (2,239,784)   5,934,508 

 

Operating segment performance

Segment Reporting

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
and other entities		   Eliminations   Consolidated 
For the year ended December 31, 2021                                    
Revenue   2,753,987    541,859    515,382    348,915    3,650    239,391    67,202    (328,988)   4,141,398 
Gross profit (loss)   139,035    110,078    81,964    81,993    1,322    42,025    3,372    16,917    476,706 
Administrative expenses   (125,094)   (14,575)   (14,460)   (14,267)   (449)   (14,911)   (46,193)   (13,255)   (243,204)
Other income and expenses   40,301    (4,400)   (3,683)   1,537    4    1,337    (38,705)   (868)   (4,477)
Operating profit (loss)   54,242    91,103    63,821    69,263    877    28,451    (81,526)   2,794    229,025 
Financial expenses   (118,725)   (13,436)   (27,568)   (8,298)   (124)   (11,927)   (46,265)   29,928    (196,415)
Financial income   1,278    298    2,544    520    510    470    40,740    (43,714)   2,646 
Interest for present value of financial asset or liability   (2,395)   (533)   (1,874)   
-
    
-
    1,779    (72,411)   12,402    (63,032)
Share of profit or loss in associates                                             
  and joint ventures   (1,794)   2,833    
-
    
-
    
-
    831    35,686    (38,417)   (861)
(Loss) profit before income tax   (67,394)   80,265    36,923    61,485    1,263    19,604    (123,776)   (37,007)   (28,637)
Income tax   (14,140)   (22,469)   (10,012)   (19,382)   (500)   (6,644)   26,808    (66)   (46,405)
(Loss) profit from continuing operations   (81,534)   57,796    26,911    42,103    763    12,960    (96,968)   (37,073)   (75,042)
Loss from discontinuing operations   
-
    
-
    
-
    
-
    
-
    
-
    (26,716)   (58)   (26,774)
(Loss) profit for the year   (81,534)   57,796    26,911    42,103    763    12,960    (123,684)   (37,131)   (101,816)
(Loss) profit from attributable to:                                             
Owners of the Company   (82,160)   51,294    15,946    31,577    763    794    (123,637)   (36,347)   (141,770)
Non-controlling interest  626   6,502   10,965   10,526  
-
   12,166   (47)  (784) 39,954 
    (81,534)   57,796    26,911    42,103    763    12,960    (123,684)   (37,131)   (101,816)

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
and other entities		   Eliminations   Consolidated 
For the year ended December 31, 2022                                    
Revenue   2,679,198    633,792    614,525    388,811    4,412    367,276    68,091    (350,981)   4,405,124 
Gross profit (loss)   (23,293)   118,934    105,400    119,729    4,644    151,797    11,702    10,607    499,520 
Administrative expenses   (126,844)   (13,942)   (12,861)   (10,806)   (947)   (15,932)   (35,543)   2,388    (214,487)
Other income and expenses   79,114    639    25,291    (3,042)   
-
    (5,014)   (332,399)   (55,203)   (290,614)
Operating profit (loss)   (71,023)   105,631    117,830    105,881    3,697    130,851    (356,240)   (42,208)   (5,581)
Financial expenses   (70,040)   (17,704)   (26,655)   (7,235)   (1,691)   (9,407)   (65,285)   41,543    (156,474)
Financial income   2,010    1,692    2,119    2,440    223    1,086    52,271    (46,387)   15,454 
(Loss) gain on present value of financial asset or financial liability   (6,196)   2,078    (267)   
-
    
-
    2,616    (84,245)   
-
    (86,014)
Share of profit or loss in associates   and joint ventures   13,511    3,098    
-
    
-
    
-
    626    14,338    (29,666)   1,907 
(Loss) profit before income tax   (131,738)   94,795    93,027    101,086    2,229    125,772    (439,161)   (76,718)   (230,708)
Income tax   (15,755)   (30,905)   (19,587)   (31,836)   (746)   (42,885)   10,397    (29)   (131,346)
(Loss) profit for the year   (147,493)   63,890    73,440    69,250    1,483    82,887    (428,764)   (76,747)   (362,054)
(Loss) profit from attributable to:                                             
Owners of the Company  (145,695)  56,800   59,262   51,937   1,483   31,094   (428,905)  (77,127)  (451,151)
Non-controlling interest   (1,798)   7,090    14,178    17,313    
-
    51,793    141    380    89,097 
    (147,493)   63,890    73,440    69,250    1,483    82,887    (428,764)   (76,747)   (362,054)

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
and other entities		   Eliminations   Consolidated 
For the year ended December 31, 2023                                    
Revenue   2,653,466    682,682    596,759    413,416    4,801    220,015    96,338    (366,002)   4,301,475 
Gross profit (loss)   277,550    102,277    101,444    123,441    2,742    64,174    14,501    9,439    695,568 
Administrative expenses   (116,215)   (16,030)   (20,447)   (11,266)   (917)   (18,301)   (29,545)   (6,649)   (219,370)
Other income and expenses   (5,765)   7,778    752    1,905    (41)   2,751    2,776    3,549    13,705 
Operating profit (loss)   155,570    94,025    81,749    114,080    1,784    48,624    (12,268)   6,339    489,903 
Financial expenses   (78,303)   (20,279)   (24,360)   (6,550)   (450)   (9,590)   (96,632)   46,120    (190,044)
Financial income   1,126    2,553    7,361    7,505    706    7,103    52,843    (47,897)   31,300 
Interests for present value of financial asset or liability   (283)   (2,725)   (1,756)   (362)   
-
    5,303    2,399    
-
    2,576 
Share of profit or loss in associates   and joint ventures   (1)   2,940    
-
    
-
    
-
    73    172,459    (172,460)   3,011 
Profit (loss) before income tax   78,109    76,514    62,994    114,673    2,040    51,513    118,801    (167,898)   336,746 
Income tax   (80,377)   (23,722)   (19,887)   (36,046)   (643)   (23,316)   (6,555)   (5,079)   (195,625)
(Loss) profit for the year   (2,268)   52,792    43,107    78,627    1,397    28,197    112,246    (172,977)   141,121 
Profit (loss) from attributable to:                                             
Owners of the Company  (1,576)  46,238   29,135   58,970   1,397   11,441   112,193   (173,199)  84,599 
Non-controlling interest   (692)   6,554    13,972    19,657    
-
    16,756    53    222    56,522 
    (2,268)   52,792    43,107    78,627    1,397    28,197    112,246    (172,977)   141,121 

 

Inter-segmental sale transactions are made at prices similar to those that would have been agreed to with non-related third parties. Revenues from external customers reported are measured in a manner consistent with the basis of preparation of the consolidated statement of profit or loss. Sale of goods are related to real estate segment. Revenues from services are related to other segments.

 

C.Geographic information:

 

Revenue derived from operations abroad (Chile and Colombia) represents 27.2% of the Corporation’s total income in 2023 (19.5% in 2022 including Chile and Colombia).

 

Segments by geographical areas:

 

In thousands of soles  2021   2022   2023 
Revenues:            
- Peru   3,284,673    3,544,465    3,132,541 
- Chile   750,565    708,996    557,785 
- Colombia  106,160   151,663   611,149 
    4,141,398    4,405,124    4,301,475 
Non-current assets:               
- Peru   2,752,560    2,911,954    2,923,737 
- Chile   165,652    151,328    114,889 
- Colombia   98,766    66,041    77,083 
    3,016,978    3,129,323    3,115,709 

 

D.EBITDA adjusted for other items

 

The Executive Committee uses adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) as the primary relevant indicator to understanding the operating performance of the Corporation and its operating segments.

 

Adjusted EBITDA is not a measurement of results based on International Financial Reporting Standards. The Corporation’s definition related to adjusted EBITDA may not be comparable to similar performance measures and disclosures from other entities.

 

The adjusted EBITDA is reconciled to net loss as follows:

 

In thousands of soles  2021 (*)   2022   2023 
Net (loss) profit   (101,816)   (362,054)   141,121 
Financial income and expenses   209,495    141,020    158,744 
Interests for present value of financial asset or  liability   63,032    86,014    (2,576)
Income tax  41,443   131,346   195,625 
Depreciation and amortization   205,307    177,023    236,905 
Adjusted EBITDA   417,461    173,349    729,819 
Adjustments to EBITDA - Other adjustments               
Impairment of investments   
-
    14,525    
-
 
Provisions: civil compensation and legal claims   30,457    256,198    
-
 
Put option on Morelco S.A.S. acquisition   (70,322)   
-
    
-
 
Adjusted EBITDA for other adjustments   377,596    444,072    729,819 

 

(*)Does not include the effect of the discontinued operation of Adexus S.A. (note 35)

 

The adjusted EBITDA with non-recurring items per segment is as follows:

 

In thousands of soles  2021 (*)   2022   2023 
Engineering and construction  47,295   (72,335)  180,660 
Energy   173,664    184,199    236,332 
Infrastructure   197,066    262,626    259,235 
Real estate   36,912    137,671    54,646 
Parent company and other entities   (34,450)   10,550    173,937 
Intercompany eliminations   (42,891)   (78,639)   (174,991)
    377,596    444,072    729,819 

 

(*)Does not include the effect of the discontinued operation of Adexus S.A. (note 35)