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 2014

 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.

____________________

/s/Dennis Gray Febres

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/ DENNIS GRAY FEBRES

Name: Dennis Gray Febres

Title: Stock Market Representative

July 24, 2014

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

UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 2013 AND 2014 AND FOR THE SIX-MONTH PERIOD ENDED IN THIS DATE

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

UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AT JUNE 30, 2013 AND 2014 AND FOR THE SIX-MONTH PERIOD ENDED IN THIS DATE

CONTENTS

Condensed Interim Consolidated Statement of Financial Position

Condensed Interim Consolidated Income Statement

Condensed Interim Consolidated Statement of Comprehensive Income

Condensed Interim Consolidated Statement of Shareholders’ Equity 

Condensed Interim Consolidated Statement of Cash Flows

Notes to the Condensed Interim Consolidated Financial Statements

S/.	=	New Peruvian Sol
US$	=	United States dollar

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED
GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT DECEMBER 31, 2013 (AUDITED) AND AT JUNE 30, 2014 (UNAUDITED)
ASSETS							LIABILITIES AND EQUITY
			At							At
			December 31,		June 30,					December 31,		June 30,
	Note		2013		2014			Note		2013		2014
Current assets							Pasivo corriente
Cash and cash equivalents				959,415		914,734	Borrowings		12		486,119		819,376
Trade accounts receivables				521,872		573,967	Trade accounts payable				991,397		1,086,344
Outstanding work in progress				971,743		1,186,791	Accounts payable to related parties		9		25,585		33,992
Accounts receivable from related parties		9		83,850		45,846	Current taxes				159,235		134,491
Other accounts receivable				553,218		575,845	Other accounts payable				745,094		864,541
Inventories				762,797		867,461	Other provisions		13		8,895		10,827
Prepaid expenses				25,686		41,271	Total current liabilities				2,416,325		2,949,571
Non-current assets classified as held for sale				21,473		20,382
Total current assets				3,900,054		4,226,297	Non-current liabilities
							Borrowings		12		309,703		318,184
Non-current assets							Long-term trade accounts payable				2,157		4,953
Long-term trade accounts receivable				591,917		598,701	Other long-term accounts payable				205,396		211,093
Long-term outstanding work in progress				-		2,742	Other provisions		13		40,387		35,514
Long-term accounts receivable from related parties		9		-		42,421	Derivative financial instruments				3,911		3,372
Other long-term accounts receivable				38,151		47,951	Deferred income tax liability				138,157		76,685
Available-for-sale financial assets		8		88,333		88,333	Total non-current liabilities				699,711		649,801
Investments in associates and joint ventures		10		87,967		121,993	Total liabilities				3,116,036		3,599,372
Investment property				36,945		37,077
Property, machinery and equipment		11		952,596		1,008,930	Equity		14
Intangible assets		11		481,392		507,397	Capital				660,054		660,054
Deferred income tax asset				135,521		138,953	Legal reserve				111,657		132,011
Total non-current assets				2,412,822		2,594,498	Premium for share issuance				1,027,533		1,027,533
							Other comprehensive income				18,423		8,324
							Retained earnings				948,112		949,305
							Equity attributable to controlling interest in the Company				2,765,779		2,777,227
							Non-controlling interest				431,061		444,196
							Total equity				3,196,840		3,221,423
				6,312,876		6,820,795					6,312,876		6,820,795
The accompanying notes on pages 7 to 22 are an integral part of the consolidated financial statements.

- 2 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED
GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF INCOME
			For the six-month period
			ended June 30,
	Note		2013			2014
Revenues from construction activities				1,731,464			2,151,974
Revenues from services provided				738,924			790,466
Revenue from real estate and sale of goods				211,530			142,274
				2,681,918			3,084,714
Cost of construction activities				(1,479,026	)		(1,908,635	)
Cost of services provided				(608,316	)		(644,605	)
Cost of real estate and goods sold				(133,974	)		(102,851	)
		15		(2,221,316	)		(2,656,091	)
Gross profit				460,602			428,623
Administrative expenses		15		(169,776	)		(196,141	)
Other income and expenses				15,022			13,170
Other (losses) gains, net				(674	)		133
Operating profit				305,174			245,785
Financial expenses				(300,022	)		(209,164	)
Financial income				214,148			179,913
Dividends received				-			6,924
Share of the profit or loss in associates and joint
ventures under the equity method of accounting				19,221			14,659
Profit before income tax				238,521			238,117
Income tax		16		(78,984	)		(73,486	)
Profit for the period				159,537			164,631
Profit attributable to:
Owners of the Company				121,676			135,063
Non-controlling interest				37,861			29,568
				159,537			164,631
Earnings per share from continuing operations
attributable to owners of the Company during
the six-month period ended				0.218			0.205
Weighted average number of shares in issue
at S/.1.00 each, at June 30,				558,284			660,054
The accompanying notes on pages 7 to 22 are an integral part of the consolidated financial statements.

- 3 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED
GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	For the six-month period
	ended June 30,
	2013		2014
Profit for the period		159,537		164,631
Other comprehensive income:
Items that will not be reclassified to profit or loss
Adjustment for actuarial gains and losses, net of tax		1,293		(1,852	)
Items that may be subsequently  reclassified to profit or loss
Cash flow hedge, net of tax		3,364		110
Foreign currency translation adjustment, net of tax		6,199		(14,522	)
		9,563		(14,412	)
Other comprenhensive income for the period, net of tax		10,856		(16,264	)
Total comprehensive income for the period		170,393		148,367
Comprehensive income attributable to:
Controlling interest in the Company		131,983		123,575
Non-controlling interest		38,410		24,792
		170,393		148,367
The accompanying notes on pages 7 to 22 are an integral part of the consolidated financial statements.

- 4 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED
GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN NET SHAREHOLDERS' EQUITY
FOR THE PERIODO ENDED JUNE 30, 2013 AND JUNE 30, 2014
			Attributable to the controlling interests of the Company
	Number						Premium			Other
	of shares				Legal		for issuance			comprehensive			Retained						Non-controlling
	In thousands		Capital		reserve		of shares			income			earnings			Total			interest			Total
Balances as of January 1, 2013		558,284		558,284		107,011		6,656			(3,716	)		723,972			1,392,207			391,035			1,783,242
Profit for the period		-		-		-		-			-			121,676			121,676			37,861			159,537
Cash flow hedge		-		-		-		-			3,196			-			3,196			168			3,364
Adjustment for actuarial gains and losses		-		-		-		-			-			970			970			323			1,293
Foreign currency translation adjustment		-		-		-		-			6,141			-			6,141			58			6,199
Comprehensive income of the period		-		-		-		-			9,337			122,646			131,983			38,410			170,393
Transactions with shareholders:
- Transfer to legal reserve		-		-		4,646		-			-			(4,646	)		-			-			-
- Dividend distribution		-		-		-		-			-			(86,986	)		(86,986	)		(10,438	)		(97,424	)
- Deconsolidation of subsidiaries		-		-		-		-			-			-			-			16,726			16,726
- Contributions of non-controlling shareholders		-		-		-		(2,787	)		-			-			(2,787	)		(4,548	)		(7,335	)
- Additional acquisition of non-controlling		-		-		-					-			-			-			(6,841	)		(6,841	)
- Others						-					-						-			(10	)		(10	)
Total transactions with shareholders		-		-		4,646		(2,787	)		-			(91,632	)		(89,773	)		(5,111	)		(94,884	)
Balances as of June 30, 2013		558,284		558,284		111,657		3,869			5,621			754,986			1,434,417			424,334			1,858,751
Balances as of January 1, 2014		660,054		660,054		111,657		1,027,533			18,423			948,112			2,765,779			431,061			3,196,840
Profit for the period		-		-		-		-			-			135,063			135,063			29,568			164,631
Cash flow hedge		-		-		-		-			105			-			105			5			110
Adjustment for actuarial gains and losses		-		-		-		-			-			(1,389	)		(1,389	)		(463	)		(1,852	)
Foreign currency translation adjustment		-		-		-		-			(10,204	)		-			(10,204	)		(4,318	)		(14,522	)
Comprehensive income of the period		-		-		-		-			(10,099	)		133,674			123,575			24,792			148,367
Transactions with shareholders:
- Transfer to legal reserve		-		-		20,354		-			-			(20,354	)		-			-			-
- Dividend distribution		-		-		-		-			-			(112,127	)		(112,127	)		(44,652	)		(156,779	)
- Contributions of non-controlling shareholders		-		-		-		-			-			-			-			34,495			34,495
- Returns additional capital from non-controlling interests		-		-		-		-			-			-			-			(1,500	)		(1,500	)
Total transactions with shareholders		-		-		20,354		-			-			(132,481	)		(112,127	)		(11,657	)		(123,784	)
Balances as of June 30, 2014		660,054		660,054		132,011		1,027,533			8,324			949,305			2,777,227			444,196			3,221,423
The accompanying notes on pages 7 to 22 are an integral part of the consolidated financial statements.

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(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED
GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
			For the six-month period
			ended June 30,
	Note		2013			2014
OPERATING ACTIVITIES
Profit before income tax				238,521			238,117
Adjustments to  profit not affecting cash flows from
operating activities:
Depreciation		15		93,759			86,237
Amortization of other assets		15		44,893			39,334
Other provisions				1,534			6,282
Share of the profit and loss in associates
under the equity method of accounting				(19,221	)		(14,659	)
Reversal of provisions				(5,364	)		(5,222	)
Profit on sale of property, plant and equipment				(961	)		(6,225	)
Foreign exchange gains on investing activities				-			(9,720	)
Foreign exchange gains on operating activities				(4,772	)		(1,936	)
Net variations in assets and liabilities:
Decrease trade accounts receivable				(380,217	)		(272,030	)
Decrease in other accounts receivable				(216,510	)		(34,324	)
Decrease in other accounts receivable from related parties				(39,110	)		(4,418	)
Decrease in inventories				(20,939	)		(104,310	)
Decrease in pre-paid expenses and other assets				(1,978	)		(15,418	)
Decrease (increase) in trade accounts payable				(78,861	)		94,028
Increase in other accounts payable				34,029			135,193
Increase in other accounts payable to related parties				7,132			8,408
Decrease in other provisions				(85	)		(6,668	)
Payments for intangible purchase - Concessions				(15,122	)		(527	)
Payment of income tax				(152,764	)		(160,292	)
Net cash applied to operating activities				(516,036	)		(28,150	)
INVESTING ACTIVITIES
Sale of property, machinery and equipment				8,274			25,870
Dividends received				4,027			19,728
Payment for Investment in associates				-			(41,335	)
Payment for purchase of property investments				(1,727	)		(1,200	)
Payments for intangible purchase				(9,951	)		(38,736	)
Direct cash inflow (outflow) from acquisition of subsidiaries				-			(6,594	)
Payments for fixed asset purchase				(102,466	)		(118,787	)
Net cash applied to investing activities				(101,843	)		(161,054	)
FINANCING ACTIVITIES
Loans received				833,067			882,917
Amortization of loans received				(465,490	)		(595,805	)
Interest payment				(21,832	)		(18,455	)
Dividends paid to owners of the parent				(86,986	)		(112,127	)
Dividends paid to non-controlling interest				(10,438	)		(44,652	)
Cash received (contribution return) to non-controlling shareholders				-			27,886
Acquisition or sale of interest in a subsidiary of non-controlling shareholders				9,391			-
Capital contribution				-			2,823
Net cash provided by financing activities				257,712			142,587
Net decrease in cash				(360,167	)		(46,617	)
Cash decrease in deconsolidation				(5,816	)		-
Exchange gains on cash and cash equivalents				4,772			1,936
Cash and cash equivalents at the beginning of the year				780,114			959,415
Cash and cash equivalents at the end of the period				418,903			914,734
NON-CASH TRANSACTIONS:
Acquisition of assets through finance leases				32,009			73,158
Increase of participation in associate				1,491			-
The accompanying notes on pages 7 to 22 are an integral part of the consolidated financial statements.

- 6 -

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

UNAUDITED

GRAÑA Y MONTERO S.A.A. AND SUBSIDIARIES

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AT JUNE 30, 2013 AND 2014 (UNAUDITED), AND AT DECEMBER 31, 2013 (AUDITED)

1 GENERAL INFORMATION   The Company is the parent company of the Graña y Montero Group (hereinafter the Group) and its principal activity is the holding of investments in the different companies of the Group. Additionally, the Company provides services of general management, financial management, commercial management, legal advisory and human resources management to Group companies; it is also engaged in the leasing of offices to Group companies and third parties.   The Group is a conglomerate of companies with operations including different business activities, of which the most significant are engineering and construction, infrastructure (public concession operation), real estate businesses and technology services.   These condensed interim consolidated financial statements as of June 30, 2014 have been prepared and authorized for issuance by the Chief Financial Officer on July 24, 2014.

2 BASIS OF PREPARATION   These condensed interim consolidated financial statements for the three -month period ended June 30, 2014 have been prepared in accordance with (IAS 34) “Interim financial reporting”.  The condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   The accounting policies used in the preparation of these interim condensed consolidated financial statements are consistent with those applied in the preparation of the year-end financial statements at December 31, 2013

4 FINANCIAL RISK MANAGEMENT   4.1           Financial risk factors   The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, price risk, fair value interest rate risk and cash flow interest rate risk), credit risk and liquidity risk.   The condensed interim consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements; these should be read in conjunction with the Group’s annual financial statements as of December 31, 2013.  There have been no changes since year-end in the risk management department of the Group or in any risk management policies.

- 7 -

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

UNAUDITED

4.1.1     Market risk –

Compared to year end, no new material market risk hedging arrangements have occurred.

4.1.2     Credit risk –

Compared to year end, the Group has no exposure to any new relevant credit risk.

4.1.3     Liquidity risk -

Compared to year end, no major changes in undiscounted contractual cash flows have occurred, except for changes in the structure of the Group’s liabilities, resulting from an increase in the short-term debt, mainly for working capital.

The following table categorizes the Group’s financial liabilities into relevant maturity groupings based on the remaining period from the date of the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows:

	Less than 1		From 1 to 2		From 2 to 5		Over
	year		years		years		5 years		Total
As of December 31, 2013
Borrowing (except for
finance leases)		371,302		118,347		64,698		-		554,347
Finance leases liabilities		115,698		82,492		87,829		22,912		308,931
Trade accounts payable		991,397		2,157		-		-		993,554
Accounts payable to related parties		25,585		-		-		-		25,585
Other accounts payable		215,413		28,745		2,166		2,354		248,678
Trading and net settled derivative
financial instruments
(interest rate swaps)		1,773		2,138		-		-		3,911
		1,721,168		233,879		154,693		25,266		2,135,006
As of June 30, 2014
Borrowing (except for
finance leases)		735,311		108,332		37,313		-		880,956
Finance leases liabilities		107,709		93,276		94,827		16,704		312,516
Trade accounts payable		1,086,344		4,953		-		-		1,091,297
Accounts payable to related parties		33,992		-		-		-		33,992
Other accounts payable		501,917		51,515		1,002		10,956		565,390
Trading and net settled derivative
financial instruments
(interest rate swaps)		1,234		2,138		-		-		3,372
		2,466,507		260,214		133,142		27,660		2,887,523

4.2 Capital management -

The Group monitors capital on the basis of 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 total ‘equity’ as shown in the consolidated statement of financial position plus net debt.

As of December 31, 2013, no gearing ratio was part of the analysis because cash surpluses were higher than financial obligations and equity had not been used to secure compliance with financial obligations as it is shown in the table below. As of June 30, 2014, due to the fact that the Company has acquired significant borrowings, the Company’s strategy was to maintain a gearing ratio between 0.03 and 1.00.

- 8 -

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

UNAUDITED

	December 31,			June 30,
	2013			2014
Total borrowing		795,822			1,137,560	)
Less: Cash and cash equivalents		(959,415	)		(914,734	)
Net debt		(163,593	)		222,826
Total equity		3,196,840			3,221,423
Total capital		3,033,247			3,444,249
Gearing ratio		0.00			0.06

4.3           Fair value estimation -

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

-  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 (level 1), 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 Group).

The only financial instruments measured at fair value by the Group are interest rate swaps (variable to fixed), forward foreign exchange contracts (mostly euros and U.S. dollars) and available-for-sale investments.  The measurement at fair value of these instruments corresponds to the characteristics of Level 2 and has been determined based on the present value of discounted future cash flows.  During the six-month period ended June 30, 2014 there were no changes in the levels of measurement of financial instruments at fair value.

The carrying amount of cash and cash equivalents corresponds to its fair value. The Group considers that the carrying amount of short-term accounts receivable and payable approximates fair value. The fair value of financial liabilities has been estimated by discounting the future contractual cash flows at the interest rate currently prevailing in the market and which is available to the Group for similar financial instruments.

Fair value hierarchy -

The following table presents the Group’s financial assets and liabilities that are measured

at fair value as of June 30, 2014.

	Level 1		Level 2		Level 3		Total
Liabilities:
Derivative financial instruments - Cash
flow hedging		-		3,372		-		3,372
Total liabilities		-		3,372		-		3,372

There were no transfers between Levels 1, 2 and 3 during the period.

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

UNAUDITED

5 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS   Preparation of the condensed interim consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed interim consolidated financial statements, the significant judgements made by management in applying the Group’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, 2013.

6 SEASONALITY OF OPERATIONS   The Group shows no material seasonality in the operations of any of its subsidiaries; operations are carried out regularly during the course of the period.

7 SEGMENT REPORTING   Operating segments are reported consistent with the internal reports that are reviewed by the Corporate General Manager, who is the chief operating decision maker, responsible for allocating resources and evaluating the performance of each operating segment.
The Group's operating segments are assessed by the activity of the following business units: (i) engineering and construction, (ii) infrastructure, (iii) real estate, (iv) technical services and (v) the operation of the Parent Company (Holding).
As set forth under IFRS 8, reportable segments by significance of income are: ‘engineering and construction’ and ‘technical services’. However, the Group has voluntarily decided to report on all its operating segments as detailed in this Note.
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 to the Corporate General Manager are measured in a manner consistent with the basis of preparation of the financial statements.
Group sales and receivables are not concentrated on a few customers.

- 10 -

(All the amounts are expressed in thousand of S/. unless otherwise stated)
UNAUDITED
Operating segments financial position
Segment reporting
	Engineering		Infrastructure												Parent
	and								Water				Technical		Company
	construction		Energy		Toll roads		Mass transit		treatment		Real estate		services		Operations		Eliminations			Consolidated
As of December 31, 2013
Assets.-
Cash and cash equivalents		265,788		17,764		80,785		23,318		445		43,026		46,469		481,820		-			959,415
Trade Accounts receivable		265,544		29,527		12,347		4,090		-		17,938		192,382		44		-			521,872
Outstanding work in progress		734,976		6,966		2,433		31,187		37,489		-		158,692		-		-			971,743
Accounts receivable from related parties		107,732		4,083		18,660		163		-		561		53,845		733,645		(834,839	)		83,850
Other accounts receivable		360,939		26,840		11,180		34,263		4,557		17,939		65,794		33,469		(1,763	)		553,218
Inventories		90,671		7,741		-		11,927		-		590,567		63,912		487		(2,508	)		762,797
Prepaid expenses		7,440		1,318		5,442		4,394		3		2,596		4,130		363		-			25,686
Non-current assets classified as held for sale		21,473		-		-		-		-		-		-		-		-			21,473
Total Current assets		1,854,563		94,239		130,847		109,342		42,494		672,627		585,224		1,249,828		(839,110	)		3,900,054
Long-term trade accounts receivable		-		-		-		591,917		-		-									591,917
Long-term trade accounts receivable from related parties		-		-		-		-		-		-		-		57,501		(57,501	)		-
Other long-term accounts receivable		-		-		10,081		-		1,858		11,811		12,301		2,100		-			38,151
Available-for-sale financial asset		-		1,058		-		-		-		-		2		88,333		(1,060	)		88,333
Investments in associates and joint ventures		153,556		7,287		-		-		-		16,297		10,454		837,889		(937,516	)		87,967
Investment property		-		-		-		-		-		36,945		-		-		-			36,945
Property, plant and equipment		533,757		190,844		3,919		6,724		-		5,636		114,081		103,840		(6,205	)		952,596
Intangible assets		175,275		101,978		145,711		6,450		1,151		957		18,883		15,282		15,705			481,392
Deferred income tax asset		68,699		644		4,258		8,765		-		4,860		42,119		1,264		4,912			135,521
Total non-current assets		931,287		301,811		163,969		613,856		3,009		76,506		197,840		1,106,209		(981,665	)		2,412,822
Total assets		2,785,850		396,050		294,816		723,198		45,503		749,133		783,064		2,356,037		(1,820,775	)		6,312,876
Liabilities.-
Borrowings		195,083		33,847		46,007		-		5,869		77,854		126,872		587		-			486,119
Trade accounts payable		751,097		19,950		3,353		9,912		280		42,484		160,104		4,217		-			991,397
Accounts payable to related parties		43,373		877		25,572		642,510		24,058		21,493		77,613		24,928		(834,839	)		25,585
Current taxes		117,088		3,477		2,515		81		366		3,161		30,498		2,049		-			159,235
Other accounts payable		526,994		10,882		42,891		879		-		72,617		79,050		11,781		-			745,094
Other provisions		-		4,207		3,846		-		-		-		842		-		-			8,895
Total current liabilities		1,633,635		73,240		124,184		653,382		30,573		217,609		474,979		43,562		(834,839	)		2,416,325
Borrowings		127,067		86,334		9,780		-		-		52,318		31,367		2,837		-			309,703
Long-term trade accounts payable		-		-		-		2,157		-		-		-		-		-			2,157
Accounts payables to related parties		-		-		-		-		-		28,500		29,001		-		(57,501	)		-
Other long-term accounts payable		124,344		-		462		-		-		9,723		69,957		910		-			205,396
Other provisions		11,801		4,668		-		-		-		-		23,918		-		-			40,387
Derivative financial instruments		-		3,563		-		201		-		147		-		-		-			3,911
Deferred income tax liability		118,970		453		166		-		340		7,074		5,864		3,599		1,691			138,157
Total non-current liabilities		382,182		95,018		10,408		2,358		340		97,762		160,107		7,346		(55,810	)		699,711
Total liabilities		2,015,817		168,258		134,592		655,740		30,913		315,371		635,086		50,908		(890,649	)		3,116,036
Equity		623,246		211,431		120,407		50,594		14,590		152,713		125,736		2,295,245		(828,183	)		2,765,779
Non-controlling interest		146,787		16,361		39,817		16,864				281,049		22,242		9,884		(101,943	)		431,061
Total liabilities and equity		2,785,850		396,050		294,816		723,198		45,503		749,133		783,064		2,356,037		(1,820,775	)		6,312,876

- 11 -

(All the amounts are expressed in thousand of S/. unless otherwise stated)
UNAUDITED
Operating segments financial position
Segment reporting
	Engineering		Infrastructure												Parent
	and construction		Energy		Toll roads		Mass transit		Water treatment		Real estate		Technical services		Company Operations		Eliminations			Consolidated
As of June 30, 2014
Assets.-
Cash and cash equivalents		215,018		21,508		66,273		51,871		2,127		47,669		32,820		477,448		-			914,734
Trade Accounts receivable		369,613		45,219		23,325		5,711		-		25,448		104,607		44		-			573,967
Outstanding work in progress		919,869		9,632		-		34,316		25,802		-		197,172		-		-			1,186,791
Accounts receivable from related parties		94,121		232		8,183		315		-		4,056		43,537		600,874		(705,472	)		45,846
Other accounts receivable		352,935		20,353		13,129		32,229		5,167		12,314		75,941		62,717		1,060			575,845
Inventories		140,231		7,865		-		12,340		-		638,097		71,783		486		(3,341	)		867,461
Prepaid expenses		8,258		1,964		7,534		11,949		424		2,093		6,053		2,996		-			41,271
Non-current assets classified as held for sale		20,382		-		-		-		-		-		-		-		-			20,382
Total Current assets )		2,120,427		106,773		118,444		148,731		33,520		729,677		531,913		1,144,565		(707,753	)		4,226,297
Long-term trade accounts receivable		-		-		-		598,701		-		-		-		-		-			598,701
Long-term outstanding work in progress		-		-		2,742		-		-		-		-		-		-			2,742
Long-term trade accounts receivable from related parties		-		-		-		-		-		-		-		129,886		(87,465	)		42,421
Other long-term accounts receivable		-		-		19,334		1,321		-		12,422		12,756		2,118		-			47,951
Available-for-sale financial asset		-		1,058		-		-		-		-		2		88,333		(1,060	)		88,333
Investments in associates and joint ventures		142,421		7,040		-		-		-		44,316		10,808		863,521		(946,113	)		121,993
Investment property		-		-		-		-		-		37,077		-		-		-			37,077
Property, plant and equipment		551,545		189,001		2,193		11,092		-		6,097		147,530		111,156		(9,684	)		1,008,930
Intangible assets		162,551		104,915		166,041		6,344		1,125		1,126		33,883		16,233		15,179			507,397
Deferred income tax asset		74,672		926		2,139		5,152		-		1,864		49,566		1,348		3,286			138,953
Total non-current assets		931,189		302,940		192,449		622,610		1,125		102,902		254,545		1,212,595		(1,025,857	)		2,594,498
Total assets		3,051,616		409,713		310,893		771,341		34,645		832,579		786,458		2,357,160		(1,733,610	)		6,820,795
Liabilities.-
Borrowings		347,495		19,613		67,667		200,373		-		84,118		99,501		609		-			819,376
Trade accounts payable		838,841		18,317		1,258		12,193		70		61,515		150,063		4,087		-			1,086,344
Accounts payable to related parties		79,395		9,025		20,833		476,834		18,619		50,589		79,975		4,302		(705,580	)		33,992
Current taxes		109,841		2,997		53		138		125		2,029		16,786		2,522		-			134,491
Other accounts payable		610,523		7,080		54,436		749		135		75,242		102,362		14,014		-			864,541
Other provisions		-		6,016		-		-		-		-		4,811		-		-			10,827
Total current liabilities		1,986,095		63,048		144,247		690,287		18,949		273,493		453,498		25,534		(705,580	)		2,949,571
Borrowings		125,711		77,673		3,861		-		-		55,109		53,284		2,546		-			318,184
Long-term trade accounts payable		-		-		2,796		2,157		-		-		-		-		-			4,953
Accounts payables to related parties		-		-		-		-		-		57,932		29,533		-		(87,465	)		-
Other long-term accounts payable		118,488		-		462		3,519		-		6,956		80,761		907		-			211,093
Other provisions		7,137		6,351		-		-		-		-		22,026		-		-			35,514
Derivative financial instruments		-		3,372		-		-		-		-		-		-		-			3,372
Deferred income tax liability		60,199		231		-		-		328		1,446		6,691		7,790		-			76,685
Total non-current liabilities		311,535		87,627		7,119		5,676		328		121,443		192,295		11,243		(87,465	)		649,801
Total liabilities		2,297,630		150,675		151,366		695,963		19,277		394,936		645,793		36,777		(793,045	)		3,599,372
Equity		610,396		241,006		122,010		56,534		15,368		146,061		115,786		2,310,608		(840,542	)		2,777,227
Non-controlling interest		143,590		18,032		37,517		18,844		-		291,582		24,879		9,775		(100,023	)		444,196
Total liabilities and equity		3,051,616		409,713		310,893		771,341		34,645		832,579		786,458		2,357,160		(1,733,610	)		6,820,795

- 12 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED
Operating segment performance
Segment Reporting
	Engineering			Infrastructure																		Parent
	and construction			Energy			Toll roads			Mass transit			Water treatment			Real estate			Technical services			Company operations			Eliminations			Consolidated
For the six-month period
ended Jun 30, 2013
Revenue		1,818,221			127,560			71,854			44,937			26,811			174,740			495,635			26,143			(103,983	)		2,681,918
Gross profit		259,950			42,928			27,753			1,024			3,471			66,009			83,955			(3,015	)		(21,473	)		460,602
Administrative expenses		(101,514	)		(7,602	)		(3,030	)		(3,862	)		(173	)		(9,064	)		(71,199	)		(4,463	)		31,131			(169,776	)
Other income and expenses		7,529			93			287			(131	)		(3	)		(468	)		12,571			(1,591	)		(3,265	)		15,022
Other (losses) gains, net		-			210			-			114			-			(998	)		-			-			-			(674	)
Profit before interests
and taxes (EBIT)		165,965			35,629			25,010			(2,855	)		3,295			55,479			25,327			(9,069	)		6,393			305,174
Financial expenses		(168,751	)		(16,593	)		(13,439	)		(35,810	)		(1,745	)		(16,074	)		(22,933	)		(26,459	)		1,782			(300,022	)
Financial income		147,167			6,912			10,866			9,025			11			5,899			15,525			30,870			(12,127	)		214,148
Dividends received		-			-			-			-			-			-			-			36,588			(36,588	)		-
Share of the profit or loss
In associates under the equity
method of accounting		24,534			359			-			-			-			72			474			490			(6,708	)		19,221
Profit before income tax (EBT)		168,915			26,307			22,437			(29,640	)		1,561			45,376			18,393			32,420			(47,248	)		238,521
Income tax		(54,542	)		(9,281	)		(6,614	)		8,822			(470	)		(12,627	)		(4,584	)		(661	)		973			(78,984	)
Net profit for the period		114,373			17,026			15,823			(20,818	)		1,091			32,749			13,809			31,759			(46,275	)		159,537
Profit attributable to:
Controlling interest in the Group		94,582			16,240			10,529			(15,613	)		546			11,188			11,737			31,879			(39,412	)		121,676
Non-controlling interest		19,791			786			5,294			(5,205	)		545			21,561			2,072			(120	)		(6,863	)		37,861
Net profit for the period		114,373			17,026			15,823			(20,818	)		1,091			32,749			13,809			31,759			(46,275	)		159,537

- 13 -

(All amounts are expressed in thousands of S/. unless otherwise stated)
UNAUDITED
Operating segment performance
Segment Reporting
	Engineering			Infrastructure																		Parent
	and construction			Energy			Toll roads			Mass transit			Water treatment			Real estate			Technical services			Company operations			Eliminations			Consolidated
For the six-month period
ended Jun 30, 2014
Revenue		2,251,951			158,931			94,643			71,864			15,256			99,347			517,970			25,894			(151,142	)		3,084,714
Gross profit		268,413			58,443			29,035			18,255			1,190			20,238			54,768			(6,756	)		(14,963	)		428,623
Administrative expenses		(122,654	)		(8,078	)		(3,795	)		(4,508	)		(140	)		(10,564	)		(60,370	)		(13,802	)		27,770			(196,141	)
Other income and expenses		3,936			(1,474	)		62			20			-			(409	)		4,735			7,105			(805	)		13,170
Other gains (losses) , net		-			139			-			-			-			(6	)		-			-			-			133
Profit before interests
and taxes (EBIT)		149,695			49,030			25,302			13,767			1,050			9,259			(867	)		(13,453	)		12,002			245,785
Financial expenses		(98,639	)		(10,337	)		(12,623	)		(23,715	)		(31	)		(11,898	)		(16,184	)		(40,908	)		5,171			(209,164	)
Financial income		88,889			7,293			4,526			21,481			6			8,013			7,515			62,091			(19,901	)		179,913
Dividends received		-			-			-			-			-			-			-			123,757			(116,833	)		6,924
Share of the profit or loss
In associates under the equity
method of accounting		16,513			(247	)		-			-			-			-			886			-			(2,493	)		14,659
Profit before income tax (EBT)		156,458			45,739			17,205			11,533			1,025			5,374			(8,650	)		131,487			(122,054	)		238,117
Income tax		(44,635	)		(14,604	)		(4,719	)		(3,613	)		(244	)		(1,496	)		(814	)		(4,106	)		745			(73,486	)
Net profit for the period		111,823			31,135			12,486			7,920			781			3,878			(9,464	)		127,381			(121,309	)		164,631
Profit attributable to:
Controlling interest in the Group		87,751			29,471			8,514			5,940			781			1,657			(7,127	)		127,492			(119,416	)		135,063
Non-controlling interest		24,072			1,664			3,972			1,980			-			2,221			(2,337	)		(111	)		(1,893	)		29,568
Net profit for the period		111,823			31,135			12,486			7,920			781			3,878			(9,464	)		127,381			(121,309	)		164,631

- 14 -

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

UNAUDITED

	No major changes occurred in total assets as compared to the amount stated in the year-end financial statements.
	There are no differences as compared to the year-end financial statements based on segmentation or measurement of financial performance by segment.
8	FINANCIAL ASSETS AVAILABLE FOR SALE
	This account comprises the investment maintained by the Company directly and indirectly in Transportadora de Gas del Perú S.A. (TGP), a local entity that operates gas transportation systems.  At December 31, 2012 the investment corresponded to shares representing the 0.6% of interest in the TGP’s capital.
	In December 2013, the Group acquired from one of the TGP’s shareholders, Pluspetrol Resources Corporation (hereinafter Pluspetrol), an additional 1.04% interest in TGP paying a consideration of US$20 million (equivalent to S/.56.1 million). At December 31, 2013, the fair value of the Group´s interest in TGP equals S/.88.3 million. The change in fair value from 2012 to 2013 of S/.19.1 million, net of the income tax of S/.8.2 million is recorded within other comprehensive income.
	Together with the acquisition of the 1.04% interest, the Company acquired from Pluspetrol on behalf of the Canada Pension Plan Investment Board (CPPIB) an additional indirect interest of 11.34% in TGP. The investment for US$217 million was funded entirely by CPPIB. The risk and rewards of the entire investment are assumed by CPPIB.
	Given the features of the transaction, it has been treated as an off-balance transaction because, in substance, the Company is acting as an agent for CPPIB. Therefore, the Company has not recognized neither the investment in TGP nor any obligation to CPPIB.
	On February 27, 2014 the Company transferred 10.43% to CPPIB and 0.91% to CFI, retaining the 1.04% interest.
9	TRANSACTIONS WITH RELATED PARTIES
	a)      Transactions with related parties -
	Major transactions between the Company and its related parties are summarized as follows:

	From the six-month
	period ended June 30,
	2013		2014
Revenue from sale of goods and services:
- Associates		1,983		-
- Joint operations		35,672		16,937
		37,655		16,937

Inter-company services were agreed upon under market terms as if they had been agreed to with third parties.

- 15 -

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

UNAUDITED

b)           Balances of transactions with related parties

	At December 31, 2013				At June 30, 2014
	Receivable		Payable		Receivable		Payable
Consorcio Peruano de Conservación		15,080		-		15,885
Consorcio Rio Mantaro		3,822		-		5,845		6,129
Consorcio Brocal Pasco		1,913		41		-
Consorcio La Gloria		3,696		3,398		3,712		3,385
Consorcio GyM Conciviles		33,405		-		41,505
Consorcio Toromocho		62		34		272		54
Consorcio Rio Urubamba		2,798		-		3,311
Consorcio Tren Electrico		2,499		-		2,330
Consorcio Atocongo		712		-		-		928
Consorcio Constructor Alto Cayma		566		4,881		1,389
Consorcio Lima		312		-		709
Consorcio Rio Pallca		3,903		-		685		818
Consorcio Norte Pachacutec		556		952		531		927
Consorcio Vial Ipacal		283		-
Consorcio Terminales		4,294		-		194		24
Consorcio Vial Quinua		37		1,315		-		1,239
Consorcio Vial Sullana		470		-		-
Consorcio Ancon Pativilca		-		-		30		866
Consorcio La Chira				51		262
Consorcio Alto Cayma		5,557		666		577		1,330
Comerciales Sur		206		-		326		32
Consorcio Proyecto Chiquintirca		134		-		134
Consorcio Ingenieria y Construcción Bechtel		-		3,924		-
Consorcio Vial Sur		737		-		-
Consorcio JV PAnamá		1,323		-		998
Consorcio Construcciones y Montajes		-		-		114		516
Inversiones y Construcciones		-		-		-
Consorcio Sistemas SEC		-		-		1,680
Stracon Motta Engil JV		-		-		1,975		4,341
Consorcio Pasco		-		-		388
Consorcio Huacho Pativilca						1,023
Consorcio HV GyM						630
Other minor		1,485		965		3,762		170
		83,850		16,227		88,267		20,759
Other related parties:
Ferrovias Argentina SA				8,771		-		12,970
Besco		-		587		-		-
El Condor Combustibles		-		-		-		263
		-		9,358		-		13,233
		83,850		25,585		88,267		33,992

	Accounts receivable and payable are of current maturity and have no specific guarantees.
	Accounts receivable from related parties mainly arise from sales transactions for goods and services with a maturity period of 60 days. These balances are non-interest-bearing because they have short-term maturities and do not require a provision for impairment.
	Accounts payable to related parties mainly arise from transactions to provide services of engineering, construction, maintenance and others and have a maturity period of 60 days. Such accounts are not interest bearing because they are short-term.
10	INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
	As of June 30, 2014, associates in which the Group has significant influence are substantially the same as those existing as of December 31, 2013.
	The movement of our investments in associates for the six-month period ended June 30, 2013 and June 30, 2014 is as follows:

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

UNAUDITED

	At June			At June
	30, 2013			30, 2014
Beginning balance		37,446			87,967	)
Acquisition and/or contributions received		1,491	)		41,335	)
Share of the profit and loss in associates
under the equity method of accounting		19,221	)		14,659	)
Dividends received		(4,027	)		(19,728	)
Adjustment LQS		7,409	)		-	)
Adjustment SEC		9,864	)		-	)
Other		924	)		(2,240	)
Ending balances		72,328	)		121,993	)

	On December 2013, the Company was awarded the concession for the operation of Chavimochic Irrigation Project. The project consists of the following activities: i) design and construction work of the third phase of the Chavimochic Irrigation Project, in La Libertad; ii) operation and work maintenance; and iii) water supply to the project users. Construction works will begin in 2015, concession has a 25-year period and total investment amounts to US$647 million.
	For the operation of the concession the Company, Constructora Norberto Odebrecht S.A. and Odebrecht Partipacoes e Investimentos S.A. have formed Concesionaria Chavimochic S.A.C. in wich the Company has 26.5% interest. As of March 14, 2014 the Company has issued S/.13.3 million equity.
	Additionally, the Company acquired Panorama Plaza’s Business with a contribution of S/.28 million, it corresponds to a participation as 35%. The main active is a land located in the district of Santiago de Surco, which is developing the real estate project consisting of a commercial area and two office towers of 17 floors.
11	PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
	For the six-month period ended June 30,2013 and 2014, the movement in property, plant and equipment and intangible assets accounts was as follows:

	Property,
	plant and			Intangible
	equipment			assets
At January 1, 2013		953,531	)		480,398	)
Additions		134,476	)		25,073	)
Transfers, disposals and adjustments		(52,953	)		28,319	)
Deductions for sale of assets		(7,313	)		-
Depreciation, amortization and impairment charges		(92,980	)		(44,893	)
Net cost at June 30, 2013		934,761			488,897	)
At January 1, 2014		952,596	)		481,392	)
Additions		191,945	)		41,080	)
Acquisition of subsidiary - net		567			9,069
Transfers, disposals and adjustments		( 31,410	)		15,236	)
Deductions for sale of assets		(19,599	)		(46	)
Depreciation, amortization and impairment charges		(85,169	)		(39,334	)
Net cost at June 30, 2014		1,008,930			507,397	)

Additions to property, plant and equipment comprise of acquisition of plant and equipment intended for the Group’s operations.

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

UNAUDITED

The amounts registered in Property, plant and equipment and intangible assets were obtained through the acquisition of Coasin Instalaciones Limitada (Note 19), direct control acquired by CAM Chile S.A. and Inversiones y Construcciones Ltda.

Goodwill -

Management reviews the results of its business operations based on the type of economic activity carried out. The economic activities that have given rise to goodwill for the Group were engineering and construction, electro-mechanical works, mining services, IT services and telecommunications services.

Goodwill by cash-generating units is broken down as follows:

	At December		At June
	31, 2013		30, 2014
Construction - Engineering		36,812		34,878
Construction - Mining services		13,366		13,366
Construction - Electromechanical		20,737		20,737
IT services		4,172		4,172
Telecommunications Services		-		7,648
		75,087		80,801

	Goodwill from the telecommunications services corresponds to the acquisition of the subsidiary Coasin Instalaciones Limitada, which is subsidiary of CAM Chile S.A. (Note 19).
	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 its value in use. Value in use is determined based on the future cash flows expected to be generated by the assessed CGU. As a result of these assessments no provisions for impairment were required. As of June 30, 2014 same criteria were applied as those in test impairment at December 31, 2013.
12	BORROWINGS
	This item comprises:

	Total				Current				Non-current
	At		At		At		At		At		At
	December		Junio		December		Junio		December		June
	31, 2013		30, 2014		31, 2013		30, 2014		31, 2013		30, 2014
Bank loans		514,228		850,346		381,005		721,673		133,223		128,673
Leases		281,594		287,214		105,114		97,703		176,480		189,511
		795,822		1,137,560		486,119		819,376		309,703		318,184

Bank loans -

As of December 31, 2013 and June 30, 2014, this item comprises bank loans in local and foreign currencies for working capital purposes. These obligations bear interest at fixed rates which fluctuated between 2% and 9% in 2013, and 2% and 7% in June 30,2014.

In April 2005, the subsidiary Norvial S.A.signed Loan Agreements with IFC and IDB to finance the construction of the first stage of the road Ancón – Huacho – Pativilca (Red Vial 5) for the amount of US$36 million (S/.123.5 millions).  The remaining of this loan (S/.42.6 millions) was prepaid at the end of 2013. On January 15, 2014 the subsidiary Norvial S.A. signed a short term bridge loan with Banco de Crédito del Perú for the amount of S/. 50 million at an interest rate of 6.32%; further in June 2014 S/.10 million loan was acquired, with the same conditions. This loan will be canceled with the Bond Program to be issue in the local capital market that will finance the construction of the second stage of this road.

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

UNAUDITED

In June 2014, the subsidiary GyM Ferrovías signed a short term loan with BBVA Continental by S/.200 million at an interest rate of 5.75%, which will due in December 2014.

As of June 30, 2014, the Company maintained unused credit limits for S/.2,617 million, which expire within one year (S/.2,626 million as of December 31, 2013).

b)     Fair value of borrowings -

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

	Carrying amounts				Fair value
	At December		At June		At December		At June
	31, 2013		30, 2014		31, 2013		30, 2014
Other loans		753,223		1,137,560		642,842		1,135,942
Loans from multilateral organizations		42,599		-		44,384		-
		795,822		1,137,560		687,226		1,135,942

	The fair value is based on cash flows discounted using a rate based on the borrowing rate of 3.5% and 7.73% (4.1% and 8.05% in 2013). It should be noted that the interest rate used are those applicable and negotiated by each Company.
13	PROVISIONS
	This item is broken down based on the expectation of liquidation as follows:

	At December		At June
	31, 2013		30, 2014
Current portion		8,895		10,827
Non-current portion		40,387		35,514
		49,282		46,341

The movement of this item for the six-month period ended June 31, 2013 and 2014 is as follows:

				Contingent			Provisions for the			Provision			Provision
	Legal			liabilities from			for the acquisition			for well			for periodic
Other provisions	claims			acquisitions			of CAM			closure			maintenance			Total
At January 1, 2013		11,380			6,006			35,220			(4,897			-			57,503
Additions		171			409			-			-			-			580
Reversals		-			-			(5,529	)		(85	)					(5,614	)
At June 30, 2013		11,551			6,415			29,691			4,812			-			52,469
At January 1, 2014		12,217			6,821			21,546			4,852			3,846			49,282
Additions		3,655			-			-			1,957			2,487			8,099
Additions from business combinations		-			5,159			-			-			-			5,159
Reversals		(399	)		(4,309	)		(4,823	)		-			-			(9,531	)
Payments		-			-			-			(335	)		(6,333	)		(6,668	)
At June 30, 2014		15,473			7,671			16,723	)		6,474			-			46,341

)

Reversals for the three-month period ended June 30, 2014 mainly consists of write-offs of provisions recognized in conjunction with the purchase price allocation related to acquisition of CAM Chile in S/.4.8 million. (S/.5.5 million as of June 30, 2013).

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

UNAUDITED

14	CAPITAL
	As of June 30, 2014 and December 31, 2013, the authorized, subscribed and paid-in capital, according to the Company’s bylaws as amended, is represented by 660,053,790 common shares at S/.1.00 par value each.
	Subsequently, a resolution of the General Meeting on March 26, 2013, as well as agreements adopted at meetings of the Board on May 30, July 23 and August 22 of 2013, mandated the issuance of common stock through a public offering of "American Depositary Shares" (ADS´s) registered in the Securities and Exchange Commission (SEC) and NYSE, increasing the capital sum from S/.558,284 to S/.660,054.
	This capital increase was carried out in two tranches as follows:

(i)	The first tranche in the amount of S/.97,674 (representing the issuance of 97,674,420 common shares issued and 19,534,884 ADS’s, therefore, at 5 shares per ADS), and,
(ii)	A second tranche in the amount of S/.4,095 representing the issuance of 4,095,180 common shares and ADS’s 819,036 (issued at 5 shares per ADS rate).

	As of June 30, 2014, the amount of 260,883,600 common shares is representing en ADSs (equivalents at 52,176,720 ADS’s therefore, at 5 shares per ADS).
15	EXPENSES BY NATURE
	For the six-month period ended June 30, 2013 and 2014, this item comprises:

	Cost of		Adminis-
	services		trative-
	and goods		expenses		Total
2013
Purchase of goods		429,565		-		429,565
Personnel charges		641,419		98,094		739,513
Services provided by third-parties		592,946		37,836		630,782
Taxes		6,420		372		6,792
Other management charges		304,550		23,082		327,632
Depreciation		86,947		6,812		93,759
Amortization		41,417		3,476		44,893
Variation of inventories		118,052		104		118,156
		2,221,316		169,776		2,391,092
2014
Purchase of goods		92,316		-		92,316
Personnel charges		826,240		107,949		934,189
Services provided by third-parties		872,276		60,814		933,090
Taxes		6,043		764		6,807
Other management charges		374,780		16,220		391,000
Depreciation		79,318		6,919		86,237
Amortization		35,859		3,475		39,334
Variation of inventories		369,259		-		369,259
		2,656,091		196,141		2,852,232

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

UNAUDITED

16	INCOME TAX
	Income tax expense is recognised based on management’s estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used for the year to 31 december 2014 is 30.86% (33.05% for the three-month period ended June 30, 2013).
17	CONTINGENCIES, COMMITTMENTS AND GUARANTEES
	As of June 30, 2014, total contingencies amounted S/.29 million. In addition the Group had guarantee commitments with different financial institutions securing transactions in the amount of US$49.5 million and S/.87.5 million.
18	DIVIDENDS
	For the period ended June 30, 2014, the Group paid dividends on its subsidiaries to its non-controlling entities for S/.44.6 million (S/.10.4 million for the same period of 2013).
	Dividends from the year ended December 31, 2013, of S/.0.169 per share totaling S/.112,126,908 were approved at the General Shareholders’ meeting held on March 28, 2014, and was paid on April 28, 2014.
19	BUSINESS COMBINATIONS
	Acquisition of Coasin Instalaciones Limitada.
	In March 2014, through the subsidiaries CAM Chile S.A. and Inversiones y Construcciones Ltda., the Group acquired control of Coasin Instalaciones Limitada with the purchase of 100.00% of its equity shares. Coasin is an entity domiciled in Chile, whose main economic activity is the provision of maintenance and installation services and telecommunications equipment..
	This acquisition is part of the Group’s plan to increase its presence in markets that present high growth potential as in Chile, and in attractive industries, such as public services.
	The Price paid by CAM Chile S.A. for the acquisition of Coasin amounted to US$2.3 million (equivalent to S/.6.6 million) and resulted in the recognition of goodwill for S/.7.6 million at the acquisition date.
	The following tables summarize the consideration paid for Coasin and the preliminary determination of fair value of assets acquired, liabilities assumed a at the acquisition date:

	S/.000		US$000
Cash and cash equivalents	24			9
Trade accounts receivable	4,639			1,651
Inventories	355			126
Property, plant and equipment	567			202
Intangibles (“Order backlog”)	1,421			506
Deferred income tax	899			320
Trade accounts payable	(3,776	)		( 1,344	)
Contingent liabilities	(5,159	)		( 1,836	)
Fair value of net assets	(1,030	)		( 366	)
Goodwill	7,648			2,723
Total paid for acquisition	6,618			2,357
Cash payment for acquisition	6,618	)		2,357	)
Cash and cash equivalent of the acquired subsidiary	( 24	)		( 9	))
Direct cash outflow from acquisition	6,594			2,348

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

UNAUDITED

	The income and the profit generated for the period from the acquisition date to June 30, 2014 amounted to S/.27 million and S/.1 million, respectively.
	The Group has a measurement period not exceeding one year from the acquisition of Coasin date on the additional assets and liabilities arising from new information could be obtained regarding the information that there are recognized in the date of acquisition and which is neither new events occurring after the acquisition date, in this case the Groupadjusts the initial amounts recognized in the business combination date.
20	EVENTS AFTER THE DATE OF THE STATEMENT OF FINANCIAL POSITION
	On March 24, 2014 we reached an agreement with CPPIB for the purchase of a 51% equity interest in Compañía Operadora de Gas del Amazonas (“COGA”), the operator of TGP, for a total amount of US$25.5 million. CPPIB will also sell 30% of COGA to Enagás, and will retain the remaining19%. This purchase is in process and is subject to certain conditions in order to complete the transaction.
	On July 1, 2014, Vial y Vives-DSD S.A. performed the merger with a Ingeniería y Construcción Vial y Vives S.A., where the first company absorbed the second. Previously, Ingeniería y Construcción Vial y Vives S.A. made the merger with the company DSD Construcciones y Montajes S.A. Both transactions were approved by the Extraordinary Shareholders' Meeting on June 28, 2014.

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