Transforming Knowledge
into Growth
Annual Report
Transforming Knowledge
into Growth
Annual Report
Responsibility Statement
“This document contains true and sufficient information on the operations of Graña y Montero S.A.A. during the year 2011.
Notwithstanding the issuer’s responsibility, the undersigned assume responsibility for its content in compliance with applicable
legal provisions”.
Mario Alvarado Pflucker
Chief Executive Officer
Gonzalo Rosado Solís
Corporate Controller
Lima, January 27, 2012
4
5
Índice
Key Figures
Letter from the Chairman
Creciendo Estratégicamente
Diversification
Internacional Development
6
9
14
16
Creciendo en Sofisticación
Engineering and Construction
Infrastructure
Services
Real Estate
Creciendo en Calidad
Social Responsability
Corporate Governance
Board of Directors
Historical Summary
20
24
26
30
34
50
51
64
Grupo Graña y Montero
Key Figures
7
EBITDA by Company 2011 / in Thousands of S/. Activity by Sector 2011/ in Thousands of S/.
GMH
GMv
Concesiones
otros
Tecno
logía
Constant values as of December 2011 / in Thousands of S/.
Constant values as
of December 2011
2008
2009
2010
2011
Growth
2010 - 2011
Activity
Billing
Gross Profit
Profit Before Taxes
Net profit
EBITDA
S/.
S/.
S/.
US$
S/.
US$
S/.
1,887,723
2,183,233
2,660,398
947,098
4,242,801
1,573,156
59.48%
1,827,710
2,001,475
2,502,675
890,949
4,241,266
1,572,587
69.47%
399,490
232,985
147,189
329,551
227,549
134,401
372,696
339,397
444,830
401,028
252,802
536,409
2,816
158,359
631,749
234,241
42.02%
142,765
477,645
177,102
19.11%
89,997
289,075
107,184
14.35%
190,961
663,950
246,181
23.78%
4,810
70.81%
US$
66.10%
76.51%
47.92%
24.05%
19.10%
28.92%
70.81%
Professionals
1,947
2,143
Concar
GMD
GyM
GMI
GMP
GMD
Concar
CAM SPA
Concessions
GMV
GMH
TOTAL
GyM
Edificaciones
e Industria
Minería
GMP
GMI
Infraestructura
Energy and Petroleum
1,654,692
290,571
19,296
138,756
31,567
53,570
36,431
38,518
37,513
-4,763
663,950
43,76%
2,91%
Infrastructure
20,90%
Mining
Building and Industry
Technology
Other
TOTAL
4,75%
8,07%
5,49%
5,80%
5,65%
-0,72%
100%
Energía y
Petróleo
39,00%
18,80%
19,50%
16,30%
2,60%
3,80%
797,647
827,346
691,577
110,313
161,226
4,242,801
100,00%
Net Income / in Thousands of S/.
Backlog / in Millions of US$ Dollars
S/. 289,075
S/. 252,802
US$ 1,883
US$ 3,075
S/. 147,189
S/. 134,401
US$ 1,281
US$ 830
2008
2009
2010
2011
2008
2009
2010
2011
Letter from the Chairman
Letter to the Shareholders
Dear Shareholders:
It is our pleasure to present the Annual Report for the year 2011, which once more reflects the best results in our 78
year long history.
We have achieved revenues of 1,570 million dollars in 2011, which represents a 77% growth compared to the previous
year. Of this increase, 36% is the result of the incorporation of two companies at the beginning of the year and 41% is
due to organic growth of the Group.
At the same time, very good economic and financial indicators were achieved, generating EBITDA of 245 million
dollars and, for the first time, net profits of over 100 million dollars.
These results were attained in an electoral year in Peru during which President Ollanta Humala was elected. Marking
a significant change of political direction, he has guaranteed the continuance of the macroeconomic policies that
have enabled Peru to become one of the countries with the greatest growth in the last 10 years.
This situation, in addition to the Group’s prestige and leadership, are reflected in obtaining new contracts for 2,766
million dollars that enabled us to end the year with a record backlog of 3,075 million dollars; that is, 63% more higher
than in the previous year.
However, the most significant achievement of the year was surely the fact that the investment program totaled 183
million dollars and included the 5 new companies in the Group. The incorporation of two new acquisitions, GSD
specializing in the digitization of documents and CAM specializing in services for the electricity sector, in addition
to the incorporation of three new companies, Stracon GyM for mining services, La Chira S.A. for the La Chira Waste
Water Treatment Plant concession, and Ferrovías GyM for railway operations that will begin with the new operating
contract for the Lima Metro.
JoSé G R AñA M I Ró qU E S A D A y M A R Io
A LvA R A Do P F L U C K E R
LETTER FRoM THE CHAIRMAN
10
11
Additionally, the incorporation of CAM will be a fundamental contribution to the consolidation of our regional
During these years, the Group has continued with its process to improve the working climate. In 2011, 72%
development strategy because, apart from the human and technical capacities it contributes, it operates in
of the more than 9,500 employees confirmed that it is a great place to work. GMI and Viva GyM stood out, as
Chile, Colombia and Brazil, in addition to Peru. This, together with the projects in the Dominican Republic,
they have been included among the 45 best places to work in the country according to the Great Place to Work
Chile and Panama, has led to foreign sales of over 270 million dollars for 2011.
Institute.
A high level of growth and increased international operations have made us one of the leading engineering
Given the importance of our social responsibility programs within our “Growing and Sharing” strategy, this
service companies in Latin America, bringing us closer to achieving our goal of being the most reliable
year we have decided to issue our first Sustainability Report according to the Global Report Initiative (GRI)
engineering services company in Latin America.
methodology, maintaining our philosophy that social responsibility programs are more efficient and long-
lasting when they are aligned with the operations and enhanced by the use of the synergies of their own
During the year, these events and large-scale perspectives have led us to define an organization of the Group
resources.
in four major business areas:
Engineering and Construction; the traditional business area, which is working on 4 hydroelectric projects
most importantly, our clear competitive advantages due to the talent we have in our group, we expect the
and major mining projects such as Las Bambas and Antapaccay in Peru and Pueblo Viejo in the Dominican
growth we have attained to continue in the coming years.
Based on the record backlog we now have, as well as our financial soundness for undertaking projects and,
Republic, among others.
Lastly, we would especially like to thank our clients and employees who have enabled us to achieve this level
Infrastructure; which operates highway concessions and has recently assumed responsibility for the
of success.
operation of Line One of the Lima Metro and the La Chira Waste Water Treatment Plant.
Services; the area which includes GMP’s petroleum services, GMD’s information technology services,
Concar’s highway maintenance and operation of public services and, now, Cam-GyM’s services provided to
the electricity sector.
Real Estate; which develops projects such as Viva GyM with over 20,000 housing units and other commercial
projects, including the one to be executed on the recently acquired land at the former site of the San Martín
military base.
We have been able to meet every challenge with regard to growth as well as sophistication, based on the
foundations of having invested on talent management over the years. Concurrently with the execution of
these projects, our “Learn to Grow” strategy has enabled us to generate very valuable knowledge, which we
have been able to systematize and disseminate through the Corporate Learning Center and the Portals of
Knowledge.
The last 5 years have also been a period of growth and achievement for our employees, as individuals and
as professionals. Today we are a group of 3,082 highly qualified engineers within a family of 25,263 Graña y
Montero employees who, acting according to the same set of values and culture, deserve the credit for our
well-deserved prestige.
José Graña Miró quesada
Chairman
Mario Alvarado Pflucker
Chief Executive Officer
(*) Exchange rate 2010 S/. 2.809 – 2011 S/. 2.697 soles per United States dollar.
Creciendo
Estratégicamente
Strategic Development
Diversification
Engineering and Construction
Infrastructure
Services
Real Estate
15
This year, two new companies acquired the previous year have joined the group: GSD, which specializes in the digitization of
documents, and CAM, which specializes in services for the electricity sector. Also during the year, our minority interest in the IIRSA
North and IIRSA South concessions was sold.
Additionally, 3 new companies have been incorporated: Stracon GyM, specializing in mining contracts for earth moving; Ferrovías
GyM for the operation of the Lima Metro; and Consorcio La Chira for the La Chira Waste Water Treatment Plant concession.
These decisions are aligned with our diversification strategy, always in our specialty of engineering services, and now we are
developing more steadily in other Latin American countries.
Today, what was a construction company has become a group of 23 companies grouped in 4 operating areas:
Engineering and Construction
Infrastructure
GyM / The original construction company that has three
divisions: Electromechanics, Civil Works and Buildings.
Norvial / The company that has the concession for Road Network
5, which is the road north of Lima from Ancón to Pativilca.
Stracon GyM / The GyM subsidiary specializing in mining
services.
Survial / The company that has the concession for Phase 1 of the
Interoceanic Highway that connects Nazca and Cuzco.
GMI / The engineering consulting firm that has two divisions:
Canchaque / The company that has the concession for the
Supervision & Engineering and Geomatics.
Ecotec / Subsidiary of GMI specializing in environmental
engineering.
highway from the Buenos Aires detour to Canchaque.
Consorcio La Chira / The consortium with the Spanish
company, Acciona Agua, that has the concession for the La Chira
Waste Water Treatment Plant.
Ferrovías GyM / The company that has the concession for Line
One of the Lima Metro.
Services
Real Estate
GMP / The petroleum services company that has two divisions:
Viva GyM / The real estate development company formerly
Drilling, Petroleum Production and Gas Fractionation.
known as GMV.
Consorcio Terminales / The GMP and Oiltanking of Germany
Almonte / Subsidiary of Viva GyM and the owner of a 1000 Ha
consortium that operates fuel terminals.
lot south of Lima.
GMD / The information technology services company that has
Consorcio GMV-Urbi / Consortium formed to develop a real
two divisions: Technology Solutions and Business Solutions.
estate project on the land at the former site of the San Martín
GSD / Subsidiary of GMD specializing in the digitization of
military base.
documents.
GMV-B / The company formed to execute the Parque Central
Concar / The company specializing in the maintenance and
Club Residencial real estate project.
operation of infrastructure concessions.
Cam GyM / The company specializing in engineering services
for the electricity sector that comprises 4 companies: Cam Chile,
Cam Colombia, Cam Perú and Cam Brasil.
Strategic Development
International Development
Early in the year 2011, a fundamental step was taken in our internationalization process with the incorporation of CAM, a company
headquartered in Chile, with operations in Colombia, Peru and Brazil. This will enable us to expand and contribute to the permanence
of our development abroad.
With these operations, the group will be operating in 6 Latin American countries in addition to Peru, through its subsidiaries.
GyM / During the year, GyM was the main contractor on the Pueblo
GMD / Provides SAP technological support services for the
Viejo mining project in the Dominican Republic, where more than
EBEL group’s international operations and help desk services
500 Peruvian technicians and engineers were working. Recently,
for Barrick, Unique and CAM at the regional level.
in a joint venture with the Canadian company SNC Lavalin, the
management of the Pataquillas mining project in Panama was
Cam GyM / which specializes in services for the electricity
awarded and it is building the Maitencillo – Caserones electrical
sector, reports revenues of 207 million dollars annually in Chile,
power transmission line for Transelec, Chile’s main electric
Peru, Colombia and Brazil.
power transmission company.
GMI / Completed the supervision of the construction of the new
mineral extraction and transportation services for the Punta de
Meliá hotel in Playa del Carmen in Mexico.
Lobos salt mine in Chile.
Stracon GyM / which specializes in mining services, provides
P RoyE C T o M I N E Ro PU E B L o v I E Jo, RE PúB L I CA D oM I N I CA N A.
Creciendo
en Sofisticación
organization
Engineering and Construction
The traditional Engineering and Construction business area had spectacular growth of over 58% and was reinforced with the
incorporation of Stracon GyM, a company specializing in mining contracts for earth moving.
Stracon GyM / was formed by the Mining Services Division and
In line with the group’s international growth objectives, in 2011
the Australian company, Stracon. It began its operations in January
work on 2 important contracts began in Chile. These contracts
2012. It was incorporated as a contribution of specialized mining
are for a 220 Km electric power transmission line for Transelec
equipment valued at 150 million dollars and a backlog of signed
and mining services for 4 years for the Punta de Lobos mine in
contracts totaling 300 million dollars, including a contract on
Iquique.
operations in northern Chile with Minera Punta de Lobos.
GyM / had growth of more than 59% in 2011, setting a new record of
completion of Lima’s tallest building, Hotel Westin Libertador, as
989 million dollars in sales, with after tax income of 58 million dollars.
well as the Gran Teatro Nacional (national theater) and the Parques
Important projects in the building construction area include the
del Agustino shopping center in the housing development where
More importantly, as of December 2011, the company had a 1,812
we had built over 3,000 housing units in prior years.
million dollar backlog, which guarantees the company’s growth
in the coming years.
All of these achievements are underpinned by our values of
reliability, quality and efficiency that have earned our company
In the mining sector, the work for Barrick at the Pueblo Viejo mine
considerable prestige in the country over the years.
in the Dominican Republic was completed and the business
relationship with Bechtel continues for the Antapaccay project, as
Our intense work with the communities surrounding our projects
well as the construction of the Nueva Fuerabamba city for Xstrata
is also worth noting, as it creates mutual trust that allows us to
Copper’s Las Bambas project.
undertake significant challenges and face the future with greater
confidence and optimism.
In the energy sector, we are continuing with the construction of the
Huanza Hydroelectric Power Plant (91 MW) and the expansion of
Such significant growth would not have been possible without the
the Machu Picchu Hydroelectric Power Plant (98 MW), and this
GyM team, which is composed of more than 2,500 employees, of
last December we began work on the Santa Teresa (90 MW) and
whom 1,383 are engineers. In addition, thousands of technicians,
Cerro del Águila (512 MW) hydroelectric plants for Luz del Sur
laborers and subcontractors support us
in
the significant
and Kallpa respectively. In the oil and gas sector, in the month of
challenges we undertake in different parts of the country and
April 2012 we will begin the construction of a 300 km gas pipeline
abroad.
from Pisco to Ica for Contugas.
WE S T I N LI M A H o T E L & C oNvE N T IoN CE N T E R
ENGINEERING AND CoNSTRUCTIoN
22
GMI / had a good year as well, with growth of 34% compared
In our international operations, the supervision of the Hotel
to the year 2010, 45 million dollars in revenue and EBITDA of 7
Paradisus Playa del Carmen in Mexico for the Sol Meliá hotel
million dollars.
chain was completed successfully.
This year, GMI entered into a framework mining contract with
In the year 2011, OSHAS 18000 certification was obtained,
Sociedad Minera Cerro Verde and renewed its framework
completing the Integrated Management System (Triple-standard
contracts with Cía. Minera Antamina and Minera Yanacocha
System, ISO 9001, ISO 14001, ISO 18000); the first Book of
SRL. In the latter months of the year, an engineering contract was
Knowledge was presented and the second volume will be
signed for Tailings Management and Fresh Water Design for the
presented soon; and a Great Place to Work award was received
new Cerro Verde Concentration Plant.
for placing among the 45 best places to work in Peru.
In the oil and gas sector, we are continuing with the framework
At GMI, we are aware of our employees’ role and the use of
contracts we have with Coga, the La Pampilla Refinery and
technology in the execution of our services. For this reason,
Pluspetrol. We have signed a contract with Consorcio Terminales,
23,262 hours of training were provided this year. In addition, 8,400
a consortium composed of Oil Tanking and GMP, to manage the
hours of research and application of the use of technologies have
construction of storage terminals in Cusco and Mollendo.
enabled us to work in 3D, incorporating content management in
our engineering designs to ensure a better product.
This year, the Water Division was created. It is working on the
Engineering of the Expansion and Improvement of the Potable
The year 2011 was also a year in which GMI continued
Water and Sewer System Project in the Pachacutec neighborhood
consolidating knowledge management and developing a culture
in Lima’s Ventanilla district.
of innovation, continuous improvement and generation of value for
our clients among our employees and more than 350 engineers.
C E N T R A L H I D RoE LéC T R I C A D E M A C H U P I C C H U
organization
Infrastructure
The Infrastructure area, which comprises 3 highway concessionaire companies, became involved in railways and water treatment during
the year, as concessions were obtained for the Lima Metro and the La Chira Treatment Plant.
In February of 2011, the La Chira concessionaire formed with the
The total volume of activity for the Infrastructure area was 43 million
Spanish company, Acciona Agua, signed a 30-year contract on the
dollars, generating EBITDA of 14 million dollars and closing with
Design, Financing, Construction and Operation of the La Chira
a backlog of approximately 292 million dollars for the next 3 years.
Waste Water Treatment Plant located south of Lima. Currently,
work is being done on the design and financing; construction
In addition, the selection, analysis and evaluation of more than
work is expected to begin in the latter part of 2012.
20 new projects continued, concentrating on the transportation,
electricity generation, health, water and sewage sectors. For Lima
In April 2011, Ferrovías GyM, a company formed with Ferrovías
City Hall, an initiative was presented for the continuation of the Paseo
de Argentina, signed a contract on the Operation of Line One of
de la República Expressway and formal negotiations began on the
the Lima Metro. In order to prepare to assume management and
Javier Prado - La Marina - Faucett Expressway contract, a project
operation responsibilities, a team of 400 people was structured
which has been pending for several years.
and consolidated, enabling the company to begin operations in
the month of December. In addition, the acquisition of new trains
With the operation of the Lima Metro, the La Chira Plant and the
has been coordinated with the French company, Alstom. The
new projects being negotiated, the Infrastructure area will fulfill its
trains should begin arriving toward the end of 2012.
objective of producing the stable long-term flows proposed by the
Group.
The highway concession companies continue consolidating the
operation of over 1,000 km of highways. Norvial is in charge of
the road from Ancón to Pativilca, Survial has the concession from
Marcona to Cusco and the concession from the Buenos Aires detour
to Canchaque.
C oN S T R U C C IóN D E L TR E N ELéC T R I Co D E LI M A
organization
Services
The Services area, which included GMD, GMP and Concar, was enhanced this year with the acquisition of Cam and GSD.
CAM / is a company we acquired from the Spanish Endesa
GMD / managed to consolidate its leadership position in the
group that specializes in providing engineering services to
provision of outsourcing solutions for the corporate market in
companies in the electricity sector. This company fits well with
the year 2011 by increasing its activity in all of its outsourcing
the group’s strategy of growth in engineering services, as it
business areas: infrastructure (ITO), business processes (BPO),
contributes 400 specialized engineers and reports revenues of
service desk and application (AO).
207 million dollars annually. In addition, it will be a fundamental
element of our regional development plan, as it has operations in
The company’s total activity for the year amounted to 69 million
Chile, Colombia, Brazil and Peru.
dollars, which represents growth of 36% compared to the year
GMP / surpassed the US$ 100 million mark in revenues for the
and EBITDA totaled12 million dollars, representing growth
first time, and EBITDA and net income are the highest in the
of approximately 50% and 40% respectively, compared to the
2010. Net income for the year amounted to 3.4 million dollars
company’s 27-year history, making 2011 a record year for GMP.
previous year.
These results are due to improvement in the efficiency of our
Pariñas Gas Plant, record petroleum production and the high
The strategy of having businesses with stable flows has enabled
price of crude during the year.
GMD to consolidate its position and lay the foundations for solid
During 2011, GMP had important technical achievements. Two
processes, IT infrastructure, help desk services and applications
exploratory wells were drilled in Block I in search of the Paleozoic
totaled 49 million dollars, which is 73% of the total activity and
and certain growth. The outsourcing revenues from business
formation at a depth of over 9,000 feet. Triple certification was
growth of 58%.
expanded in Consorcio Terminales from 1 to 9 terminals and the
technical standard of quality was certified by Indecopi for the
The solid results achieved in the year 2011 have made it possible
commercialization of saturated acyclic hydrocarbon produced by
to invest 5 million dollars in assets for new business process and
the liquid separation and fractionation plant.
IT infrastructure outsourcing projects obtained during the year.
In line with the knowledge management promoted by the group,
compared to the year 2010, totaling 88 million dollars.
GMP has invested in 27,444 hours of training for its personnel,
which is an average of 68 hours per person, and has obtained a
Undoubtedly, the main reasons that allowed GMD to obtain good
76% level of satisfaction among its employees in the annual Great
results are teamwork among its employees and the systemization
As a result of these investments, the backlog increased 30%
Place to Work survey.
of its processes, which made it possible to fulfill its commitments,
improve client satisfaction and, therefore, increase the company’s
activity and profitability.
TE R M I N A L D E PE T RóL Eo E N M oL L E N Do
SERvICES
28
The company’s human resource management is geared toward
Early in the year, Graña y Montero, together with Ferrovías,
improving the working climate and developing managerial skills
was awarded the concession for Line One of the Lima Metro.
in middle management, as well as building trust and cooperation
Since the month of August, responsibility for the operation and
between support areas and projects, with regard to both
maintenance of the line has been assumed by CONCAR.
commercial and execution processes. Part of this plan consisted
of launching the Middle Management Training Program and
Another important event during the year was Graña y Montero’s
creating communities to exchange experiences and information,
sale of its interest in the North and South IIRSA highways.
fostering the cultural change necessary to support the knowledge
Therefore, Concar no
longer executes
the operation and
management strategy in this manner.
maintenance of the North IIRSA Highway.
Early in the year, GSD, a company we acquired from Telefónica,
Toward the end of the year 2011, Concar decided to begin a phase
was incorporated in the group.
of specialization in the manufacture of raw materials required for
It will be an important reinforcement for the Business Processes
the contracts, installing an asphalt emulsion plant, which is easy
area.
to transport from one location to another, to supply the projects.
GSD / is a digital services company specializing in the digitization
During the year 2011, Concar was in charge of the maintenance
and processing of documents for the financial and consumer
of 10 highways, the total length of which is 3,400 km, giving the
product sectors.
company clear leadership and reasons to be optimistic about the
coming years.
This company has been incorporated as a subsidiary of GMD.
In its first year of operations, its activity has increased 60% and it
now has 160 employees.
CONCAR / had revenues of over 86 million dollars. This growth
was due to the execution of contracts obtained during the previous
year.
organization
Real Estate
Viva GyM / is the new name of GMV, the company comprising
Other projects that merit special mention are the opening of the
all of the group’s real estate companies, which has specialized in
Parque Agustino shopping center in the month of December, with
the development of social housing projects in recent years.
7 movie theaters and 20,000 m2 of commercial area as part of the
3,600-apartment Parques del Agustino social housing project. This
Currently, it is developing projects that will entail the construction
complex, the first of its kind in Peru, is in line with our concept of
of 21,000 apartments over the next 5 years. Recently, it has
offering better housing and an improved standard of living.
acquired a controlling interest in Inmobiliaria Almonte S.A., the
owner of an undeveloped 1,000 Ha piece of land south of Lima,
During the year, the renowned French architect, Jean Nouvel
where 30,000 more housing units could be built.
(Pritzker Award winner in 2008), was hired to design a world-class
During the year, the following housing projects were under
military base in Miraflores, which we acquired during the previous
construction:
year.
project for combined use on the site of the former San Martín
Los Parques de Carabayllo
Los Parques de Villa El Salvador
Los Parques de Garezon
Our Los Parques de Carabayllo project won 1st place in the Mi
Vivienda (My Home) category in the “IX Concurso Nacional de
Calidad Arquitectónica CAP 2010 – Premio Celima” architectural
Parque Central, Club Residencial
quality contest, and our Social Accompaniment Program was
Neo 10
Cipreses
selected as a finalist in two categories of the Concurso Creatividad
Empresarial 2011 (2011 Business Creativity Contest).
During the year, the company had activity totaling 55 million
In addition, Viva GyM ranked 9th on the Great Place to Work
dollars, generating net income of 9 million dollars for the area,
Institute’s list of “the Best Companies to work for in Peru” in the
which has permitted investments in new lots amounting to 27
small company category.
million dollars, including the purchase of a 129,000 m2 piece of
land in Piura, a 75,000 m2 lot in Villa El Salvador, a 23,000 m2 lot
The leadership attained by this great team and the enormous
in San Martín de Porres and another one on Pezet Avenue, across
demand for social housing in our country enable us to view real
from the San Isidro Golf Club.
estate prospects for the coming years with great optimism.
CoN J U N T o H A B I TA C IoN A L PA RqU E S D E EL
A G U S T I No
Creciendo
en Calidad
Social Responsibility
Good corporate governance practices with regard to its shareholders, in addition to talent management geared toward employees’
professional and personal development, create an atmosphere of trust and commitment, which is vital in order to continue taking on
the challenges entailed by the growth of the group.
We continue to enhance our professional talent management in
The “Espacio Azul” civil association, a Graña y Montero
line with our “Learn in order to Grow” strategy, in the certainty
non-profit entity, continued fostering the group’s corporate
that our employees’ knowledge, capacity and enterprising
social responsibility activities, particularly Graña y Montero
attitude are our greatest competitive advantage.
Volunteering, as a statement that CSR is everyone’s commitment.
This positive experience is what we project to society within our
These social responsibility actions and initiatives, as well as
“Growing and Sharing” social responsibility strategy, establishing
others mentioned in the following paragraphs, are included in our
education and knowledge as the basis for development and
annual report for the United Nations Global Compact. Starting
social welfare.
this year, they will be included in the Graña y Montero group’s
first GRI Sustainability Report.
During the year 2011, we continued our well-known “Developing
Job Skills in the Area of Influence” program. In addition, we held
We continue to be committed to socially responsible corporate
the second annual edition of the Graña y Montero Award for
management that ensures the growth and sustainability of our
Peruvian Engineering Research and launched a new category
business to the benefit of our 25,263 employees, their families
in this contest, in order to recognize the best research or thesis
and society.
by a recent engineering graduate. We also continued the degree
candidate program geared toward providing opportunities to
obtain an academic degree based on applied research work.
The Engineering Portal completed its first year of existence,
providing virtual as well as physical spaces
for sharing
knowledge, with over 17,000 registered members.
Social Responsibility
Human Resource Management
The group’s considerable economic growth has entailed a large
opportunities for employees’ personal and professional growth.
increase in the total number of employees, who now number
For this purpose, they have had specialized support from the
25,263; that is, an increase of approximately 58% compared to
Corporate Learning Center on the design and development of
December 31, 2010. The number of engineers and professionals
systems and programs aimed at developing the professional
rose 71%, totaling 4,810, with 2,992 engineers with different areas
competences and leadership styles required of our employees in
of specialization.
the short and long term.
The incorporation of the international operations of Cam GyM and
In addition, a mid-year
internal corporate communication
GSD has been a challenging and enriching experience in which
campaign was held with the slogan “With your talent, anything
different cultures have been integrated for the achievement of
is possible”, emphasizing
the
talent, effort, creativity and
new common goals. Similarly, engaging in new lines of business,
commitment of the engineers, professionals and technicians
such as the operation of Line One of the Lima Metro, has led to
who execute our projects, and highlighting the importance of
human resource management in line with the need to have a team
that emotional connection with their effort, contribution and
of employees that meets our clients’ new service needs.
achievement.
For this reason, the local and international human resource
For the fourth year in a row, the Graña y Montero Group has
management teams have redoubled their efforts to respond
continued its process of improving the working climate. In 2011,
to the need to form and develop teams committed to all of the
72% of its more than 9,500 employees confirmed that it is a great
new challenges related to growth, dealing with rising standards
place to work, particularly Viva GyM and GMI, which ranked
of competitiveness and specialization, and developing greater
among the country’s 45 best places to work.
HUMAN RESoURCE MANAGEMENT
38
39
Educational Statistics
Age Distribution
N° People as of 12.31.11
GyM viva GyM
GMv
GMD
GMP
GMI CoNCAR CAM REG.
Total
N° Employees as of 12.31.11
GyM
GyM viva GyM
GMD
GMP
GMI CoNCAR CAM REG.
Total
Employees on Subsidiaries’ Payroll
Under 20
0
2
0
0
0
1
162
18
183
Engineers / Architects with graduate degrees
Other Professions with graduate degrees
21
24
58
12
10
4
7
0
Engineering / Architecture Professionals
9
1,325
16
508
Other Professions
24
639
25
278
21
2
86
37
9
3
20
2
45
43
191
90
From 31 to 40
From 20 to 30
16
1,240
365
180
312
2,801
From 41 to 50
84
186
455
1,728
From 51 to 60
Total Professionals
78
2,034
55
793
146
461
388
855
4,810
From 61 to 65
Technicians
9
535
29
477
242
392
2,193
954
4,831
66 and over
26
31
11
3
0
776
328
171
39
13
32
31
19
2
0
0
569
64
333
1,005
665
3,924
518
100
302
792
689
3,234
142
84
119
405
299
1,427
39
102
1
1
30
8
72
13
13
186
126
709
28
3
12
126
0
38
Total Employees on Subsidiaries’ Payrolls
87
2, 569
84
1270
388
853
2,581
1,809 9,641
Total
87
2,569
84
1,270
388
853
2,581
1,809
9,641
Laborers
Skilled Laborers
Unskilled Laborers
Subcontractors’ Laborers
0
0
0
6,541
4,673
4,350
Total
0
15,564
0
0
0
0
0
0
0
0
0
0
0
0
0
58
0
58
0
0
0
0
0
6,541
0
0
0
4,731
4,350
15,622
Total Personnel
87
18,133
84
1,270
388
911
2,581
1,809
25,263
Interns
Independent Professionals
Total
0
4
4
84
5
89
4
0
4
41
5
46
3
2
5
12
14
26
0
0
0
54
198
0
30
54
228
Grand Total
91
18,222
88
1,316
393
937
2,581
1,863
25,491
HUMAN RESoURCE MANAGEMENT
40
41
Population Statistics
Employment Status Statistics 2010-2011
N° People as of 12.31.11
GyM viva GyM
GMv
GMD
GMP
GMI CoNCAR CAM REG.
Total
Organization
Headquarters
87
516
60
218
70
428
53
550
1,982
l
f
o
s
a
e
p
o
e
P
°
N
1
1
.
2
1
.
1
3
0
1
.
2
1
.
1
3
.
A
A
S
M
y
G
.
.
1
1
.
2
1
.
1
3
.
A
A
S
M
y
G
.
.
0
1
.
2
1
.
1
3
v
M
G
a
v
v
i
1
1
.
2
1
.
1
3
v
M
G
a
v
v
i
0
1
.
2
1
.
1
3
M
y
G
1
1
.
2
1
.
1
3
M
y
G
0
1
.
2
1
.
1
3
D
M
G
1
1
.
2
1
.
1
3
D
M
G
0
1
.
2
1
.
1
3
P
M
G
1
1
.
2
1
.
1
3
P
M
G
0
1
.
2
1
.
1
3
I
M
G
1
1
.
2
1
.
1
3
I
M
G
0
1
-
2
1
-
1
3
R
A
C
N
o
C
1
1
.
2
1
.
1
3
R
A
C
N
o
C
0
1
.
2
1
.
1
3
G
E
R
M
A
C
1
1
.
2
1
.
1
3
-
G
E
R
M
A
C
0
1
.
2
1
.
1
3
f
o
s
a
l
a
t
o
T
1
1
.
2
1
.
1
3
f
o
s
a
l
a
t
o
T
Projects
Total
Gender
Male
Female
Total
Hierarchy
Senior Management
Employees
Interns
Independent Professionals
Laborers
Total
0
2,053
24
1,052
318
425
2,528
1,259
7,659
Type of Employment Contract
87
2,569
84
1,270
388
853
2,581
1,809
9,641
60
27
87
35
52
0
4
0
2,053
516
37
47
919
350
708
2,217
1,397
7,741
351
38
145
364
412
1,900
2,569
84
1,270
388
853
2,581
1,809
9,641
7
0
3
4
7
13
46
15
2,562
84
1,267
384
846
2,568
1,763
9,526
84
5
15,564
4
0
0
41
5
0
3
2
0
12
14
58
0
0
0
54
198
0
30
0
15,622
91
18,222
88
1,316
393
937
2,581
1,863
25,491
Employees
With
Permanent
Employee
Status
With
Temporary
Employee
Status
Total
Employees
Laborers
67
82
433
611
26
33
288
338
237
252
92
96
70
93
673
866 1,886 2,371
0
5
1,185 1,958
45
51
749
932
159
136
504
757 1,891 2,488
612
943
5,145
7,270
67
87 1,618 2,569
71
84 1,037 1,270
396
388
596
853 1,961 2,581 1,285 1,809 7,031 9,641
Regular Employment System
With
Permanent
Employee
Status
With
Temporary
Employee
Status
Special Civil
Construction
Status
(Temporary
Status)
Total
Laborers
Total
Employees
and Laborers
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 1,158 1,344
0
0
0
0
0
0
57
58
0
0
0 7,468 9,870
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,215 1,402
0
7,468 9,870
0
0 8,626 11,214
0
0
0
0
0
0
57
58
0
0
0
0 8,683 11,272
67
87 10,244 13,783
71
84 1,037 1,270
396
388
653
911 1,961 2,581 1,285 1,809 15,714 20,913
Social Responsibility
Risk Prevention and
Environment
At Graña y Montero, the consolidation of an integrated risk
In the application of BBS over the past three years in the Poracota
prevention and environmental management system has entailed
and Orcopampa pilot projects, behavior indicators at Poracota
the development of a culture of prevention supported on a
show improvement from 89% to 96% as an indicator of safe
daily basis by specialized internal training, adequate tools and
performance of work. At Orcopampa, the indicators increased
equipment, and, fundamentally, continuous emphasis on safe
from 93% to 96%.
conduct in our operations.
Our performance indicators clearly show that we are on the right
During the year 2011, we have continued with the introduction and
path. In recent years, all of these actions have made it possible to
development of BBS as a proactive methodology that enables us
maintain our Frequency Index under 0.55 (OSHA). In the year 2011,
to transform unsafe behaviors into safe behaviors, observe and
we provided 1,149,903 hours of safety and environment training.
identify critical behaviors, design safe behaviors and monitor the
In this manner, the constant growth of our operations is accompanied
safe performance of our employees’ work.
by the group’s continuous commitment to its employees’ safety
and its clients’ requirements.
Social Responsibility
Knowledge management
45
Training in the year 2011
In the year 2011, the group directed its efforts related to knowledge
This strategic project based on the competence model takes on
management and talent development toward all of Graña y
the challenges expected from 2011 to 2016 and is based on an
Montero’s professional employees. For this reason, the Corporate
active manager – employee relationship and adequate training
Learning Center team was reinforced and commissioned with the
programs in every phase of an employee’s career path.
development of a comprehensive program aimed at accelerating
the growth of all employees, particularly professional employees,
The year 2012 will be the year of the full deployment of the “Graña
through both technical and managerial training fostered and
y Montero Talent Development” project within the framework
supported by supervisors and managers.
of the “Learn in order to Grow” corporate strategy, and we will
This led to the creation of the “Graña y Montero Talent
Development” program that has had the valuable participation
During the year 2011, over 255,000 man hours of training were
of all of the general managers, as well as the managers of
provided, almost 20% more than the number recorded for the
Operations and Human Resources. Thanks to this contribution,
previous year.
continue improving the related management indicators.
it has been possible to clearly establish the behaviors expected
of an employee throughout his/her career, as well as the specific
competences that enable one to adopt such behavior. This
program is carried out within the framework of the corporate
values and the Graña y Montero culture.
Description
GyM
GMD
GMI
GMP
Concar
GMv
Total
Internal Training
57,347
26,290
13,580
5,395
37,113
1,403
141,128
Basic Program – Young Engineers
36,099
2,076
8,169
570
6,094
208
53,216
Collective Memory
1,580
0
1,061
754
0
217
3,612
Management Training
10,582
5,066
773
539
2,762
767
20,489
Technical Training
9,086
19,148
3,453
3,532
28,182
211
63,612
Competence Building
0
0
124
0
75
0
199
Internal Training
57,347
26,290
13,580
5,395
37,113
1,403
141,128
External Training
37,495
30,365
9682
22,049
12,648
4,997
117,236
Total Training
94,842
56,655
23,262
27,444
49,761
6,400
258,364
Monthly Average - Employees
2,136
1,189
765
405
2,071
84
6,650
Hours of Training / Employees
44.40
47.65
30.41
67.76
24.03
76.19
38.85
Risk Prevention -
Environmental Management
1,149,903
0
23,411
8,266
21,378
77,454
1´280,372
Social Responsibility
Community Relations
Within the framework of the corporate “Growing and Sharing”
the development of large-scale social housing programs and
strategy, during the year 2011 a number of programs and
their impact on the development of new urban communities, we
social responsibility actions centered on our capacities and
held an international training event aimed at promoting a new
knowledge were executed, based on the expectations of the
perspective of the rights and duties of owner residents of the new
different communities to which we have ties over the course of
“Los Parques de El Agustino” housing complex that is home to
our operations.
over 4,200 families.
We are not only referring to communities in the area of projects
Our regular “Developing Job Skills in the Area of Influence”
being executed, but also other communities or stakeholders,
program received international recognition from Fórum Empresa
such as the academic and university community or the business
in its publication, “La empresa como promotora del desarrollo
community related to our economic sector.
económico y social: casos exitosos en América Latina” (The
In every case, we base our actions on the conviction that
successful cases in Latin America), which was presented at
knowledge is the main source of sustainable social welfare and
the IDB’s 2011 Inter-American Conference on Corporate Social
the driving force of a culture of progress and leadership.
Responsibility held in the city of Asunción, Paraguay.
company as a promoter of economic and social development:
In relation with
the engineering community, we not only
These actions and others mentioned below have contributed to
continue to promote research through the “Award for Peruvian
the fact that the “Corporate Reputation – Socially Responsible
Engineering Research” in two categories, energizing the virtual
Company Index” calculated by Pontificia Universidad Católica del
exchange of experiences and strengthening professional ties
Perú’s CENTRUM and the “Arellano Marketing” consulting firm
through the Engineering Portal. This year, together with Pontificia
rank Graña y Montero in 8th place. It should be noted that the 7
Universidad Católica del Perú, we are promoting and sponsoring
companies outranking us pertain to the consumer products sector.
the “Conference of the International Group for Lean Construction”
in Lima.
The following table presents a summary of the main CSR actions
executed in the different geographical areas where the different
With Universidad del Pacífico, we also launched the “Practical
companies in the Graña y Montero group operate.
Guide for Project Management with Social Responsibility”
in May 2011 as a contribution to the promotion of socially
responsible corporate behavior. Considering our leadership in
47
Initiative
Direct Beneficiary Target Group
Location
Developing Job Skills Program - Direct training
(Projects). 2,631 beneficiaries with 128,023
man hours of training.
Local residents in the area of influence of
GyM projects.
Lima, Ayacucho, Apurímac, Cajamarca,
Cerro de Pasco, Cuzco.
Developing Job Skills Program in the Area
of Influence - Indirect training (Community).
408 beneficiaries with 11,539 man hours of
training.
Local residents in the area of influence of the
projects de GyM.
Apurímac, Arequipa, Cajamarca,
Cerro de Pasco, Ica, Lima.
Natural Disaster Preparedness (tsunamis,
floods, earthquakes) and Environmental
Accident Prevention (spills) Program. 869
beneficiaries with 2017 man hours of training.
Parents of children from the communities
located in the area of influence, as well as at
schools. Companies in the group.
La Libertad, Arequipa, Chimbote, Lima, Piura.
Traffic and Civic Education Programs.
Children and adolescents from the schools
located in the areas near the highways
operated by Concar under concession.
Junín, Piura, Ayacucho, Cuzco, Lima, Ica,
Tacna, Moquegua, Lambayeque, Piura,
Tumbes.
Social Accompaniment Program, in economical
housing projects: training on the rights and
duties of new residents for the purpose of
fostering healthy coexistence and leadership.
4,153 beneficiaries with 8,015 man hours of
training.
Guided visits and talks on the project being
executed - Socio-environmental impact.
983 beneficiaries with 2,528 man hours of
training.
Safety-related training: work at heights,
use of safety equipment and evacuation.
1904 beneficiaries with 4,340 man hours of
training.
Residents of the social housing
condominiums built by GMV.
El Agustino, Cercado and Carabayllo in Lima.
Local residents in the area of influence of the
projects. Companies in the group.
Arequipa, Chimbote, Cuzco, Ica, Ilo, La
Libertad, Lima, Piura, Puno.
Local residents in the area of influence of the
group’s companies.
Arequipa, Cuzco, Cerro de Pasco, Ilo, Ica,
Apurímac, Piura.
Training on management and environmental
impact in operations areas. 1,781 beneficiaries
with 2,288 man hours of training.
Students, clients, relatives of employees and
the community in general. Companies in the
group.
Lima, Cuzco, Cerro de Pasco, Junín
Training related to personal development:
self-esteem, family violence and leadership.
198 beneficiaries with 850 man hours of
training.
Educational talks on development and family
protection: parent - child relationship.
3,000 beneficiaries with 6,000 man hours of
training.
Parents and women of the communities
located in the area of influence of the
projects. Companies in the group.
Ica, Cuzco, Lima
Local residents in the area of influence of the
projects. Companies in the group.
Lima, Arequipa.
CoMMUNITy RELATIoNS
48
49
Iniciative
Direct Beneficiary Target Group
Location
Iniciative
Direct Beneficiary Target Group
Location
Establishment of dialogue with the community.
2,464 beneficiaries.
Local residents in the area of influence of the
projects. GyM.
Arequipa, Ayacucho, Cuzco, Lima.
Social welfare campaigns and improvement in
housing units. 5,940 beneficiaries.
Local residents in the area of influence of the
projects. Companies in the group.
Arequipa, Ica.
Promotion and execution of engineering
research: Engineering Portal, Announcement of
the 3rd edition of the Graña y Montero Peruvian
Engineering Award, Announcement of the First
University Thesis Contest, Sponsorship or Lean
Construction Conference.
Health and nutrition programs, battle
against AIDS, vaccination campaigns. 333
beneficiaries.
Launch of the “Practical Guide for Project
Management with Social Responsibility”.
Academic and professional engineering
community. Companies in the group.
Participación a nivel nacional.
Local residents in the area of influence of the
projects. Companies in the group.
Arequipa, Ayacucho, Cuzco, Lima.
Academic and business community. GyM.
Distribución a nivel nacional.
Teacher training program to improve primary
education. 4,265 beneficiaries with 21,080 man
hours / training.
Teachers at the schools near the area of
influence of the projects. GMP.
Ancash, Arequipa, Cuzco, Ica, Ilo, La
Libertad, Lima, Piura, Puno.
Vocational Orientation Program and Life Plan.
663 beneficiaries with 1,395 man hours of
training.
Young people and adolescents living in the
area of influence of the projects. Companies
in the group.
Lima, Ica, Arequipa.
Workshop on Artisan Production Projects and
Empowerment. 208 beneficiaries with 2,494
man hours of training.
Women from communities near the areas of
influence of the projects. Companies in the
group.
Lima, Piura.
Entrepreneurial Andean Women Program.
Women of the communities near the areas of
influence of the projects. GMI.
Junín, Lima.
Job Workshops: electrical installations,
heavy equipment operation, conventional and
decorative painting on concrete surfaces.
125 beneficiaries with 3,388 man hours of
training.
High school students at schools located in
the area of influence of the projects. GyM
Lima, Arequipa.
Graña y Montero Volunteering Program:
Christmas Solidarity, Cold Weather Campaign
- Improved Kitchens, Improvement of
Recreational Areas and creation of a plant
nursery at Padre Iluminato School. 3,339
beneficiaries.
Children of the communities near the areas
of influence of the projects, high Andean
communities with respiratory problems, rural
community of Condorcocha, children of the
Padre Iluminato shelter. Companies in the
group.
Lima, Ancash, Arequipa, Dominican Republic,
Huancayo, Ayacucho, Piura, Abancay, Ica.
Several philanthropic donations.
5,162 beneficiaries
Firefighters of Peru, schools, National Police
Force, several private and public entities.
Companies in the group.
Arequipa, Ayacucho, Ilo, Cuzco, Lima, Piura.
Local acquisition and purchasing program.
Local residents in the area of influence of the
“Fuerabamba" project. GyM.
Cuzco.
Awareness-raising campaign on caring for the
environment. 4,012 beneficiaries.
Local residents in the area of influence of
projects. Companies in the group.
Arequipa, Apurímac. Lima, Cuzco, Ica, Piura.
Improvement in neighborhood infrastructure:
Reconstruction of irrigation channels and
berms, Maintenance of borders of dumps,
Conditioning of trees in plant nurseries,
construction of gabions in affected areas.
22,361 beneficiaries.
Local residents in the area of influence of the
projects. Companies in the group.
Apurímac, Arequipa, Piura, Cerro de Pasco,
Lima.
Solid Waste Management Program:
Collection and disposal. 29,816 beneficiaries.
Students, teachers and community near the
area of influence of the project.
Companies in the group.
Apurímac, Arequipa, Piura, Ayacucho, Lima,
Cuzco.
Environmental Monitoring Programs:
Water, Archaeological Remains, Noise, etc.
30,902 beneficiaries.
Local residents in the area of influence of the
projects. GyM.
Arequipa, Ayacucho, Apurímac.
50
Social Responsibility
Corporate Governance
51
Board of Directors
In the month of March, Directors Augusto Baertl Montori and Teodoro E. Harmsen left the Board of Directors. They were replaced by
Luís Miró Quesada Valega and Hugo Santa María Guzmán.
José Graña Miró quesada
Chairman / External Director
Carlos Montero Graña
Vice-Chairman / External Director
Luis Miró quesada valega
External Director
José Chlimper Ackerman
Independient External Director
Mario Alvarado Pflucker
Independient Internal Director / Chief Executive Officer
Roberto Abusada Salah
Independient External Director
José Antonio Colomer Guiu
Independient External Director
Hernando Graña Acuña
Independient Internal Director
Hugo Santa María Guzmán
Independient External Director
The year 2011 has been a year of important progress regarding
Work was also done on the redefinition of the Executive
corporate governance. In March, José Graña, who was the
Commission, which is understood to be composed of the general
Chairman and First Executive of the Group, decided to retire from
managers, executive presidents and corporate managers.
his executive responsibilities. The Regulations of the Board of
The Executive Commission has met on a monthly basis to discuss
Directors were modified, differentiating the position of Chairman
and work on matters of strategic importance to every company in
of the Board of Directors, which will not involve executive
the Group.
responsibilities, and that of the Chief Executive Officer, which
will be the group’s top executive position. José Graña continues
In 2011, we modified our Internal Rules of Conduct, reinforcing
as the Chairman of the Board of Directors and Mario Alvarado
the rules on the handling of privileged information and raising the
Pflucker is the Chief Executive Officer.
standards required of our executives and employees with access
to privileged information.
Additionally, it was agreed to organize the structure of the
group in 4 business areas (Engineering and Construction,
Lastly, it should be noted that Graña y Montero has been included
Services, Infrastructure and Real Estate), creating an Operating
in the Lima Stock Exchange’s Good Corporate Governance Index
Committee for each business area, the composition of which will
since its creation and has actively participated in the Companies
include at least one independent director. The primary objective
Circle, a group composed of 19 Latin American companies with
of the Operating Committees is to supervise the operations of the
high standards of corporate governance that actively promote
companies in the group, in order to enable the Graña y Montero
and share their experiences with other Peruvian companies.
S.A.A. Board of Directors to have better knowledge of the business
and operations of the different companies composing the group.
CoRPoRATE GovERNANCE
52
53
Profile of the Board of Directors
Board of Directors Committees
operating Committees of the Board of
Directors
José Graña Miró Quesada
José Antonio Colomer Guiu
Chairman of the Board of Directors. Architect. Additionally, he is
Independent Director. Certificate in Corporate Management from
the Chairman of the Board of Directors of subsidiaries GyM and
IESE Business School, Universidad de Navarra. Certificate in
Viva GyM S.A., and Director of Empresa Editora El Comercio
Business Management and Marketing from ESADE. Certificate
S.A.
Carlos Montero Graña
in Quality and Strategic Marketing from AEDEM, Alta Escuela de
Dirección de Empresas. Certificate in Leadership and Innovation
from IESE - Universidad de Navarra. President of ASF SL and
Vice Chairman of the Board of Directors. Civil Engineer. He was
advisor to GRUPSOLER S.A. He is a director of BBVA Banco
the Vice Chairman of Graña y Montero until March 31, 2007.
Continental and Holding Continental, as well as MAPFRE /
Additionally, he is the Chairman of the Board of Directors of
CATALUNYA. Additionally, he is a director of Viva GyM.
Concar, Vice Chairman of the Board of Directors of GMP and a
director of GyM.
Hugo Santa María Guzmán
Roberto Abusada Salah
External Independent Director. He has a doctorate in Economics
from Washington University in St. Louis and a degree in
Independent Director. Ph.D. in Economics. He has attended
Economics from Universidad del Pacífico. He is a partner and
Universidad Católica del Perú and Cornell and Harvard
senior economist at APOYO Consultoría. He is a director of
universities in the USA. Former Director of the PUCP graduate
MiBanco and Apoyo Comunicación Corporativa. Previously, he
Economics program. He has held the position of Director of Peru’s
was a director of Fondo Consolidado de Reserva (FCR) and
Central Bank and CAF and Vice Minister of Economy. Founder
Compañía Minera Atacocha.
and Director of the Instituto Peruano de Economía (IPE/Peruvian
Institute of Economics). Currently, he is the Chairman of the Board
Luis Miró Quesada Valega
of Directors of GMD.
José Chlimper Ackerman
External Director. Businessman and Director of Empresa Editora
El Comercio S.A. since March 1990. In addition, he has held the
positions of Director and President of Grupo TV S.A.C.; Plural
Audit and Process Committee:
Roberto Abusada Salah, Chairman
José Chlimper Ackerman
José Antonio Colomer
This committee held four meetings during the year
Engineering and Construction Committee:
José Graña Miró Quesada, Chairman
Mario Alvarado Pflucker
José Chlimper Ackerman
Hernando Graña Acuña
This committee held three meetings during the year
Human Resource Management and Social Responsibility
Services Committee:
Committee:
José Chlimper Ackerman, Chairman
Roberto Abusada Salah
Luis Miró Quesada Valega
José Graña Miró Quesada, Chairman
Mario Alvarado Pflucker
Roberto Abusada Salah
Carlos Montero Graña
This committee held three meetings during the year
This committee held three meetings during the year
Investment and Risk Committee:
José Graña Miró Quesada, Chairman
José Antonio Colomer Guiu
Hugo Santa María Guzmán
Infrastructure Committee:
José Graña Miró Quesada, Chairman
Mario Alvarado Pflucker
Hugo Santa María Guzmán
Luis Miró Quesada Valega
Hernando Graña Acuña
Independent Director. Attended Universidad Nacional de
TV S.A.C. and Compañía Peruana de Radiodifusión S.A. since
This committee held three meetings during the year
This committee held three meetings during the year
Ingeniería
(National Engineering University).
Degree
in
October 2007 and Zetta Comunicadores del Perú S.A. EMA since
Economics and Business Administration from North Carolina
June 1995.
State University in the USA. Former Director of ALAFARPE,
ADIFAN, SNI, and President of IPAE. Former councilman for the
Mario Alvarado Pflucker
municipality of Lima, President of the Fondo de Las Américas and
Internal Director and Chief Executive Officer. Civil Engineer with
Minister of Agriculture. Currently, he is a director of Maestro Home
a Master’s degree in Engineering Administration from George
Center Perú S.A., Aeropuertos del Perú S.A. and ComexPerú, and
Washington University, USA. Currently, he is also a director of
a member of the Agrarian Consultative Council for the master’s
GMD, GMI, GyM, GMP, Viva GyM, CONCAR and CAM Chile.
degree in Agribusiness program at Universidad del Pacífico.
Chairman of the Board of Directors of Corporación Drokasa S.A.
Hernando Graña Acuña
and Chairman of the Board of Directors and CEO of AGROKASA.
Internal Director. Industrial Engineer with graduate studies in
He is a director of Graña y Montero S.A.A. and G y M S.A.
Mining Engineering from the University of Minnesota, USA. He
is the Chairman of the Board of Directors of GyM and a Director
of GMI, GMP, CONCAR, Norvial, Survial and Cam Chile.
Real Estate Committee:
José Graña Miró Quesada, Chairman
Mario Alvarado Pflucker
José Antonio Colomer Guiu
This committee held three meetings during the year
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55
Executive Commission
Self-evaluation of the Board of Directors
The Executive Commission responsible for the coordination of the group is composed of the group’s senior executives:
During 2011, the Board of Directors’ Self-Evaluation Process took place at Graña y Montero S.A.A., as well as at our subsidiaries.
Mario Alvarado Pflucker
Chief Executive Officer
Chairman of the Executive Commission
Juan José Arrieta Ocampo
Corporate Human Resources and SR Manager
Mónica Miloslavich Hart
Chief Financial Officer
Claudia Drago Morante
Corporate Legal Manager
Antonio Rodríguez Canales
Investment Manager
Antonio Cueto Saco
Country Manager
Hernando Graña Acuña
Executive President GyM
Francisco Dulanto Swayne
Executive President GMP
Gonzalo Ferraro Rey
Infrastructure Manager
Juan Manuel Lámbarri
General Manager GyM
Luis Díaz Olivero
General Manager GMP
Jaime Dasso Botto
General Manager GMD
Walter Silva Santisteban Requejo
General Manager GMI
Jaime Targarona Arata
General Manager CONCAR
Rolando Ponce Vergara
General Manager Viva GyM
Klaus Winkler Speringer
General Manager Cam GyM
As a result of the self-evaluation, we improved the scheduling of Board of Directors meetings and the structure of the committees, we
worked on the risk matrix and we are continuing with visits to the projects. This year, the directors visited the National Theater project
and the Machu Picchu Hydroelectric Power Plant.
Senior Executives
Mario Alvarado Pflucker
Francisco Dulanto Swayne
Chief Executive Officer since 1997. He obtained a bachelor’s
Executive President of GMP. He attended Universidad Nacional de
degree in Civil Engineering from Universidad Ricardo Palma and
Ingeniería (National Engineering University), ESAN and Universidad
a master’s degree in Engineering Administration specializing in
de Piura (PAD). He has worked for the Graña y Montero Group since
Construction Management from George Washington University,
1974, and was the General Manager of GMP from its founding in
USA. Currently, he is a director of GMD, GMI, GyM, CAM Chile,
1984 until March 2011. He is also a director of Consorcio Terminales.
Viva GyM, GMP and CONCAR.
He was the President of the SPE (Society of Petroleum Engineers),
Lima Section, in 1991 and Director of the Sociedad Nacional de
Juan Manuel Lambarri Hierro
Minería y Petróleo y Energía (National Society of Mining, Petroleum
General Manager of GyM since 2001. Civil Engineer, graduate
and Energy) in 1993-1994 and 2005-2006.
of Pontificia Universidad Católica del Perú and the Universidad
de Piura Senior Management Program (PAD). He joined Graña
Jaime Dasso Botto
y Montero in the year 1982 and currently, he is also a director of
General Manager of GMD since 2000. He obtained a bachelor’s
GyM, Viva GyM and GMI.
Hernando Graña Acuña
degree in Electronic Engineering and a master’s degree in
Software Development from Stevens Institute of Technology, USA.
He was the Commercial Manager of GMD from 1994 to1999.
Executive President of GyM. Industrial Engineer with graduate
Currently, he is also a director of GMD.
studies in Mining Engineering from the University of Minnesota,
USA. He is the Chairman of the Board of Directors of GyM and
Walter Silva Santisteban Requejo
This committee held three meetings during the year.
Director of GMI, GMP, CONCAR, Norvial, Survial and Cam Chile.
General Manager of GMI from 1998 to 2005 and Managing
Shareholder Service office
Luis Díaz Olivero
Director from 2006 to the present. He obtained a bachelor’s
degree in Civil Engineering from Universidad Nacional de
General Manager of GMP since March 2011. Industrial engineer
Ingeniería (National Engineering University). Currently, he is also
with an MBA from the University of Pittsburgh. He held the
a director of ECOTEC.
position of Assistant Manager at GMP from 2009 to 2011.
The Shareholder Service Office handled a total of 48 inquiries and meetings with investors and company shareholders during the year
From 2004 to 2009, he served as the Corporate Finance Manager
Jaime Targarona Arata
2011 and participated in 5 international conferences in Mexico, Santiago, New York, Lima, London, Paris and Edinburgh, where 44
and Finance Manager of GyM from 2001 to 2004. He has worked
General Manager of CONCAR since August of 2005. Civil Engi-
meetings were held with investors.
for the group since 1993. Currently, he is a director of GMP.
neer graduated from Universidad Autónoma de Guadalajara, with
an MBA from Universidad San Ignacio de Loyola. He has also
held the position of Civil Engineer on different projects, Commer-
cial Manager of the GyM Special Projects Division and General
Manager of Graña y Montero Mexico. Currently, he is a director
of CONCAR.
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57
Rolando Ponce Vergara
Claudia Drago Morante
General Manager of Viva GyM since October 2008. Previously,
Corporate Legal Manager since 2000. Attorney graduated from
he held the position of Manager of the Real Estate Division. He
the University of Lima. PADE in Finance and Corporate Law from
Kinship
has worked for the Group since 1993. He is a Civil Engineer by
ESAN. She was the Legal Advisor to GMD from 1997 to 2000.
Mr. José Graña Miró Quesada, Chairman of the Board of Directors, has third degree kinship with Ms. Yamile Brahim Graña, a share-
profession, with a degree from Universidad Ricardo Palma and
Currently, she is also the Stock Exchange Representative and
holder of the company, and fourth degree kinship with directors Hernando Graña Acuña and Luís Miró Quesada Valega. Lastly, Mr.
a Master’s degree in Construction and Real Estate Business
Secretary of the Board of Directors.
Teodoro Hans Harmsen Andress, a director of GMP, has first degree kinship with Mr. Teodoro Harmsen Gomez De La Torre, Chairman
Management from Pontificia Universidad Católica de Chile-
of the Board of Directors of GMI.
Politécnica de Madrid. Currently, he is also a director of Viva
Juan José Arrieta Ocampo
GyM.
Manager of Human Resources Management and Social
Responsibility since November of 2007. Bachelor’s degree in
Company Name
Klaus Winkler Speringer
Sociology from Pontificia Universidad Católica. PADE in Business
General Manager of CAM since 2007. Currently, he is also a
Administration from ESAN. He was the Human Resources
director of CAM Chile. Commercial engineer with a degree from
Manager at GyM from 1999 through October 2007.
In a corporate split-off from Inversiones Graña y Montero S.A., Graña y Montero S.A.A. was incorporated by means of a public
Universidad Gabriela Mistral in Chile and an MBA from Stanford
University. He served as Development Manager at Chilectra and
Antonio Rodriguez Canales
document on August 12, 1996 and registered on card 131617 and electronic record 11028652 in the Registry of Juridical Persons of Lima.
previously held managerial positions at Enersis, Endesa Chile and
Investment Manager since October 2010, Certified Public
Endesa España, working in Madrid, New York and Santiago.
Accountant and graduate of Universidad de Lima, with a master’s
Capital
Gonzalo Ferraro Rey
degree in Business Administration from ESAN and an MBA from
The Birmingham Business School in the UK. He was the General
Corporate Infrastructure Manager at Graña y Montero S.A.A.
Manager of Larcomar from 2002 until 2010. Currently, he is a
The capital of the company as of December 31, 2011 amounted to S/.390,798,933.00 represented by 558,284,190 shares with a nominal
since May 2011. Industrial engineer who attended Universidad
director of Concar and CAM Chile.
value of S/.0.70 each.
Nacional de Ingeniería (National Engineering University) and
Universidad de Lima. He also completed the Senior Management
Antonio Cueto Saco
Program (PAD) at Universidad de Piura. He has worked for
Corporate Country Manager - Chile since February 2011.
the group since August 1996, holding a number of managerial
Economist with a degree from Universidad Católica and a
positions. Currently he is the Chairman of the Board of Directors
master’s degree in Management and Finance from HEC (Paris,
Principal Shareholders
of SURVIAL, CANCHAQUE and GyM LA CHIRA and a director
France). He has worked for the group since 1996 and has held the
As of December 31, 2011, we had 1,235 shareholders, of which approximately 25.65% own less than 1% of the capital stock and nearly
of GyM Ferrovías.
positions of Business Development Manager at Graña y Montero
34.02% have from 1 to 5%.
S.A.A. (2008-2010), Commercial Manager at GyM (2007), Project
Mónica Miloslavich Hart
Manager at GyM (2001-2007) and General Manager of Servisel
The principal shareholder is the GH Holding Group, represented by José Graña Miró Quesada, Chairman of the Board of Directors.
Chief Financial Officer since July 1, 2009. Economist. Graduate
S.A. (1996- 2000).
of Universidad de Lima. She has been with the group since 1993.
She was the Finance Manager of GME S.A from 1998 to 2004 and
Dennis Gray Febres
Finance Manager of GyM from 2004 to 2009. Currently, she is
Corporate Finance and Investor Relations Manager since May 2011.
also a director of Norvial, Survial and GyM Ferrovías S.A.
Economist with a degree from Universidad del Pacífico specializing
César Neyra Rodriguez
in Finance. Former Corporate Vice President of Finance at Citibank
del Perú, General Manager of Citicorp Perú SAB, and Product
Manager of Internal Auditing and Management Processes since
Development Manager at BCP.
2003. He has a bachelor’s degree in Accounting from Universidad
Nacional Federico Villarreal and a master’s degree in Business
Jorge Luis Izquierdo Ramirez
Administration and Finance from Universidad del Pacífico. He has
Manager of the Corporate Learning Center. Civil Engineer with
also studied Quality Improvement Systems and graduated from
a degree from PUCP and a master’s degree in Construction
the Six Sigma Methodology program at Caterpillar University in
Management from the University of California, Berkeley. He joined
Mexico and the USA.
the group in 1998 through GyM in operations and began running the
Corporate Learning Center in January 2011.
CoRPoRATE GovERNANCE
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59
List of Principal Shareholders as of 12/31/2011
Dividend Policy
Full Name
Numbers of Shares
GH Holding Group
117,538,203.00
AFP Integra (ING GROUP)*
65,901,696.00
Prima AFP (Grupo Crédito) *
65,889,092.00
AFP Horizonte (Grupo BBVA)*
55,949,863.00
Bethel Enterprises S.A.
33,785,285.00
Profuturo AFP (Grupo Scotiabank)*
29,228,812.00
Byron Development S.A.
22,432,223.00
Subtotal
390,725,174.00
Other Shareholders
167,559,016.00
Nacionality
Panama
Peru
Peru
Peru
Panama
Peru
Panama
Interest
21.05%
11.804%
11.802%
10.02%
6.05%
5.24%
4.02%
69.99%
30.01%
The company’s Dividend Policy in effect in the year 2011 is to distribute 30% of the profits obtained each year.
Corporate Purpose
The company’s main purpose is to dedicate its efforts toward investments and mercantile operations in general, as well as engineering
services, management consultancy, real estate investments, concessions and the acquisition, transfer and negotiation of shares of
companies and other securities.
CIIU – 6719
Duration of the Company
Graña y Montero S.A.A. was incorporated for an indefinite period of time.
Total
558,284,190.00
100.00%
Changes in shares
* Sum of Funds 1,2 and 3
Tenencia
Less than 1%
From 1% - 5%
From 5% - 10%
Over 10%
Total
Number of Shareholders
Percentage Interest
The share price quoted at year end was S/. 6.70.
The volume traded during the year amounted to S/. 592,536,777.
Lastly, the IGBVL (general index) dropped 16.90% compared to 2010, and the ISBVL (selective index) decreased by 14.71% compared
to 2010. It should be noted that the variation in the GRAMONC share rose 0.75% (including the effect of the issuance of stock dividends).
1,219
12
3
1
1,235
25.65%
34.02%
19.28%
21.05%
100.00%
CoRPoRATE GovERNANCE
60
61
Graña y Montero S.A.A.
variable Income
volume Traded GRAMoNC1
vol. Neg. US $
Precio CIerre
ISIN Code
Nemonic
year - Month
quotes 2011
Avg.
Price S/.
opening. S/.
Closing S/.
Max. S/.
Min. S/.
PEP736581005
GRAMONC1
2011 - 01
PEP736581005
GRAMONC1
2011 - 02
PEP736581005
GRAMONC1
2011 - 03
PEP736581005
GRAMONC1
2011 - 04
PEP736581005
GRAMONC1
2011 - 05
PEP736581005
GRAMONC1
2011 - 06
PEP736581005
GRAMONC1
2011 - 07
PEP736581005
GRAMONC1
2011 - 08
PEP736581005
GRAMONC1
2011 - 09
PEP736581005
GRAMONC1
2011 - 10
PEP736581005
GRAMONC1
2011 - 11
PEP736581005
GRAMONC1
2011 - 12
6.70
6.55
6.50
6.20
5.14
6.10
5.24
6.05
5.90
5.40
6.13
6.40
6.50
6.50
6.21
5.14
6.10
5.24
6.05
5.90
5.45
6.13
6.40
6.70
6.73
6.92
6.60
6.35
6.55
6.35
6.30
6.30
5.90
6.30
6.45
6.70
6.40
6.50
6.00
4.60
5.10
5.22
5.24
5.20
5.45
5.10
6.00
6.30
6.58
6.60
6.27
5.41
6.18
5.77
5.91
5.58
5.74
5.64
6.26
6.46
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
oct
Nov
Dec
CoRPoRATE GovERNANCE
62
63
Graña y Montero S.A.A.
Company Name
Graña y Montero S.A.A.
Address:
Telephone:
Fax:
Shareholder Service Office
Av. Paseo de la República 4667, Surquillo
51-1-213 6565
51-1- 213 6590
51-1-2136566
Representative
Mónica Miloslavich Hart
Electronic mail address
mmiloslavich@gym.com.pe
Incorporation
Public Records
Capital Stock
Shares
Public deed dated August 12, 1996
Card 131617- Electronic Record 11028652
S/. 390,488,222.74
558,284,190 fully subscribed and paid in
Acciones in portfolio
none
Principal Shareholders and Economic Group
See Corporate Governance section
Social Purpose
See Corporate Governance section
IIUC
Duration
Events
Sector and Competence
6719
Indefinite
Net Sales
Leases
Management
Investment Plans
Main Assets
Shares GyM S.A.
Shares GMP S.A.
Shares GMD S.A.
Shares GMI S.A.
Shares Concar S.A.
Shares Larcomar S.A.
Shares Norvial S.A.
Shares Canchaque S.A.
Shares Survial S.A.
Shares TGP S.A.
Shares GyM Ferrovías
Shares CAM Chile S.A.
year 2011
year 2010
S/. 3'385,000
S/. 3'852,000
S/. 36'180,466
S/. 32'302,336
All of the services were provided in-country.
US$ 183 million
93.67%
95%
88.68%
89.41%
99.99%
79.69%
50.10%
99.96%
73.00%
1%
50%
75%
75%
See Historical Summary
Shares Concesionaria La Chira S.A.
Graña y Montero S.A.A. is an investment company whose
principal subsidiaries pertain to the Construction, Engineering,
Petroleum, Information Technology, Concessions and Shopping and
Entertainment Center Sectors.
In addition, it provides management services exclusively to its
subsidiaries, due to which it does not actually compete in the market.
Judicial Administrative or Arbitral Proceedings
See Notes to the audited Financial Statements
Individuals Responsible for Preparing and Reviewing Financial
Information
Gonzalo Rosado Solís - General Corporate Accountant
Mario Alvarado Pflucker
Corporate General Manager
External Auditors
Price Waterhouse Coopers
Social Responsibility
Historical Summary
Graña y Montero was founded 78 years ago on June 22, 1933 under
In the 1990s, Graña y Montero participated actively in the Peruvian
the name of GRAMONVEL by engineers Carlos Graña Elizalde,
privatization process as Telefónica’s local partner in Telefónica
Alejandro Graña Garland and Carlos Montero Bernales.
del Perú, as ENDESA’s partner in Empresa de Generación
It was a construction company until the year 1949 when it merged
with Morris y Montero to acquire capacity for the execution of
In recent years, Graña y Montero was the first company to
paving and earth moving works under the new name of Graña y
participate in the infrastructure concession program, which has led
Eléctrica de Lima, and REPSOL’s in the La Pampilla Refinery.
Montero.
to participation in the majority of the contracts and the operation of
over 3,400 Km of highways today through its subsidiary, CONCAR
In those times it participated in the country’s major infrastructure
S.A.
works, such as the Southern Pan-American Highway, El Pato Air
Base for the United States government and the city of Talara, and
During the year 2010?, the group incorporated 5 companies: GSD,
built some of Lima’s most emblematic buildings, such as the
which specializes in the digitization of documents; CAM, which
Ministry of Economy and the Ministry of Labor.
specializes in services for the electricity sector; Stracon GyM
In the 1950s, it formed Consorcio de Ingenieros Contratistas
Treatment Plant Concession; and Ferrovías GyM for the operation
Generales S.A. to execute more complex projects, such as the
of railways, beginning with the operation of the Lima Metro.
Cañón del Pato Hydroelectric Plant, the Steel Mill in Chimbote
and the runway for Lima’s Jorge Chávez Airport.
Currently, the Group has 3,082 engineers, it is the only company
for mining services; La Chira S.A. for the La Chira Waste Water
Subsequently, it concentrated its growth on large-scale private
in the country’s engineering and infrastructure sector and it has
projects such as the Cuajone and Cerro Verde mines, the Shell,
activities in 6 other Latin American countries in addition to Peru.
in its field listed on the Lima Stock Exchange, it clearly the leader
Mobil and Occidental petroleum projects, and the Chavimochic
and Chinecas irrigation projects.
Upon the celebration of its 50th anniversary in 1983, the Strategic
Diversification Plan was launched, leading to the formation of
GMP, the petroleum service company; GMD, the information
technology service company; and GMI,
the engineering
consulting company. These companies were the origin of what is
now the Graña y Montero Group.
H o T E L SH E R AT oN LI M A, 1 9 74
66
67
Creciendo
Estratégicamente
Creciendo
en Sofisticación
Creciendo
en Calidad
Creciendo
en Solidez
Direcciones
Graña y Montero S.A.A.
Av. Paseo de la República 4667 Oficina C-401, Surquillo, Lima 34, Perú
T 213-6565 F 213-6590
Representante Legal Mario Alvarado Pflucker
GyM S.A.
Av. Paseo de la República 4675 Oficina A-201, Surquillo, Lima 34, Perú
T 213-0444 F 213-0400
Representante Legal Juan Manuel Lámbarri
GMD S.A.
Av. Paseo de la República 4667, Surquillo, Lima 34, Perú
T 213-6300 F 446-9667
Representante Legal Jaime Dasso Botto
GMI S.A.
Ingenieros Consultores
Av. Paseo de la República 4667, Surquillo, Lima 34, Perú
T 213-5600 F 444-0373
Representante Legal Walter Silva Santisteban
GMP S.A.
Av. Paseo de la República 4667, Lima 34, Perú
T 215-1500 F 241-3030
Representante Legal Francisco Dulanto Swayne
Concar S.A.
Dirección Calle Shell 459 – Miraflores, Lima 18, Perú
T 213-6535 F 213-6538
Representante Legal Jaime Targarona Arata
viva GyM S.A.
Av. Paseo de la República 4675, Surquillo, Lima 34, Perú
T 206-7206 F 206-7205
Representante Legal Rolando Ponce Vergara
Ferrovias GyM S.A.
Jr. Solidaridad cdra. 8 s/n, Parque Industrial, Villa El Salvador, Lima 42, Perú
T 207-2900
Representante Legal Manuel Wu Rocha
Cam GyM
Tarapacá 934, P. 3, Santiago de Chile, Chile
T 56-2-3897437 F 56-2-389-7342
Representante Legal Klaus Winkler Speringer