COSAPI SA

WHO WE ARE:

COSAPI offers engineering and construction services to the market.

miners, business in infrastructure concessions and developments
real estate.

COSAPI, with more than 50 years in the market, is the second company of
national capital engineering and construction in Peru, according to the ranking of the
"500 Largest Companies in Peru" published by América Economía. Has
successfully completed several of the most important projects and
emblematic of Peru, both in the private sector and in the public sector.
Among these projects are works such as the development of the project
Antamina, one of the most important mining projects developed in the
Peru; the construction and maintenance of 1,187 and 1,975 km of roads
respectively; the construction of the Jockey Plaza Shopping Center, the center
largest commercial establishment in the country in sales (according to what the Association indicated
of Shopping Centers in Peru); the construction of the headquarters of the Bank
Interbank; and the modernization of the international airport of Lima. Likewise,
has developed projects in 13 countries worldwide.

All of this has been made possible thanks to the strong business culture of COSAPI.
he considers his people as his main organizational asset. He has with
a highly competent and specialized team made up of 1,628
employees and 6,073 workers who share the corporate values of the
company.

Likewise, COSAPI cares about all its stakeholders, which is why

since 2013, it has managed a series of commitments framed in its Policy of
Social Responsibility, Safety and Health, Environment and Heritage
Cultural.

It holds the international certifications ISO 9001, ISO 14001, and OHSAS.
18001 to develop projects with the highest safety standards
quality. Likewise, it has implemented its Anti-Bribery Management System,
certified under ISO 37001:2016. In addition, it holds the first place in the
["Ranking 'Merco Companies with the Best Corporate Reputation'","'Merco Attraction'"]
of Talent" and "Merco Social Responsibility and Corporate Governance", in the
Infrastructure, Services, and Construction sector in Peru.

MISSION
 We are a company of engineering, construction, project management,
mining services, infrastructure concessions, and real estate developments;
certified in ISO 9001, ISO 14001, OHSAS 18001 and ISO 37001; founded in
Peru in 1960; which, based on people with values and knowledge, has
the mission of:
Contribute to the success of our clients by developing their projects with
quality, safety, and within the expected time and budget.
Promote the personal and professional development of our people by training
leaders whose achievements transcend in the company and in society.
Maintain an open and trusting business environment that fosters
innovation and continuous improvement.
Integrate strategic partners and suppliers to form high-performance teams.
performance.
Provide a safe and healthy workspace that is respectful of the environment
natural and the communities around us.
Generate profits to maintain financial stability, drive growth
and adequately reward our shareholders.

VISION
To be the engineering and construction company, solid, innovative and of class
worldwide, recognized as the best in projects, markets and
ventures in which we participate.

CULTURE
COSAPI has maintained, since its foundation, the commitment to be a company
identified with ethics and integrity, providing its clients with services with
quality. Therefore, it is vital that your People adhere to a policy of
ethics that determine the objective guidelines of expected behaviors in
the whole company.

Así comoCOSAPIfomenta el uso de la más alta tecnología, el empleo de los

quality management systems, innovation in processes, improvement
continues, among others, also promotes and is concerned that talent
humans adopt behaviors that reflect righteousness and integrity practices, that
they constitute the foundation of relationships with their customers, suppliers, and the
collectivity in general.
 VALUES
COSAPIt has the philosophy of efficiently transitioning from objectives and strategies.
to concrete actions that enable achieving goals and results. The
the management of these strategies must be carried out within the framework of values that
they support the actions of the company. They are:

Integridad: Coherencia entre la palabra y la acción en un sentido de rectitud,

integrity and respect.
Leadership: The ability to create an environment that guides the effort of groups.
humans in a desired direction, promoting a shared vision,
structuring them, directing them, generating growth opportunities,
inspiring action values and anticipating development scenarios.
Team spirit: Collaborate, cooperate, and combine efforts with a group of
people in order to achieve common goals, enriching the experience
own with that of other group members, and producing a greater result
that the sum of individual efforts.
Innovation: Willingness to modify existing ways of doing things
taking on the responsibility of putting them into practice, seeking
optimize the efficiency of processes and the effectiveness of results.

OUR PEOPLE

COSAPI is aware that the success of the projects it develops relies on

in its human capital, which is made up of cheerful people,
competent and committed, who work in high-performing teams
performance, willing to meet the needs of their clients with dedication,
professionalism and a strong sense of ethics.

The technical expertise of its people is in a process of continuous improvement.

to be in permanent contact with large-scale projects, which
they are executed both nationally and internationally, as well as for their
participation in training programs that the company offers them.

Since the Manager of Project until the worker

specialized, COSAPI assigns to its projects, people with a culture of
security, that meet the client's requirements and are prepared
to integrate a team with clear objectives and the ability to overcome the
more difficult challenges.

The people of COSAPI have a reputation for meeting and exceeding expectations.
even in the most adverse conditions.
CODE OF ETHICS
COSAPI has maintained its commitment to being a company since its foundation that
operates with ethics and integrity, providing its clients with Engineering services and
Construction, Mining Services, Real Estate, and Concessions with quality. By
Hello, it is vital that your staff is governed by ethics policies.
that determine the objective guidelines of the expected behaviors in all
the company.

LINES DE BUSINESS/ COSAPI ENGINEERING Y

CONSTRUCTION
COSAPI has extensive experience in executing large projects and
complexes, in which their people have demonstrated their ability to comply and
exceed the expectations of its customers, even in the most challenging conditions
difficult.

COSAPI makes the solutions it offers to its clients different and

successful, because they integrate - from the beginning of the project lifecycle -
multidisciplinary teams of engineering, procurement, and construction. This guarantees
count on highly efficient designs and, therefore, lead a phase of
cleaner and more productive construction.

The people of COSAPI approach projects with an integrative mindset,

what is the engine that drives the production of high value-added designs,
focused on achieving a more productive and efficient execution.

With a real operational capacity of 26 million man-hours at

year, COSAPI Engineering and Construction has five Units of
Business: Buildings, Infrastructure, Industrial Plants, Engineering and
International.

COSAPI MINING
COSAPI Mining is a subsidiary of COSAPI, a company of
engineering and construction with more than 56 years of experience in the fields
national and international. We share the same values and culture
business. We specialize in carrying out large earthworks and
open-pit mining.

We are committed to our clients through the execution of

large investments that allow us to create long-term connections in the
different productive cycles of the mining sector.
COSAPI CONCESSIONS
The concession business in infrastructure and public services accounts for
currently with two significant concessions for the
[Link] is part of the consortium that was awarded the contract for the
concession of Line 2 and the Av. Faucett–Av. Gambetta branch of the Basic Network
of the Lima and Callao Metro, the concession of transportation infrastructure more
relevant in the history of Peru, involving a total investment of more than
US$5.49 billion, generating significant business opportunities and
synergies for COSAPI.

In addition, COSAPI is part of the Angostura Siguas Concessionary Society.

S.A. that is in charge of the concession for the development of the project
Majes Siguas for the Regional Government of Arequipa for a total investment of
US$405 million.

COSAPI Concesiones exclusively develops infrastructure projects and

public services through Public-Private Partnerships, which seek
contribute to the growth of the country while demonstrating capability
of the company to successfully manage works from their study to their
adjudication.

The achievements of COSAPI Concessions are based on the strengths of its team:
the ability to detect, design, and successfully develop projects,
including economic, financial, technical, and legal analysis; the knowledge of
market that allows early detection of opportunities; the good
relationship with authorities, clients, and other stakeholders, and knowledge of their
needs, which allow him to offer appropriate solutions to them; and the
prestige and good image that grant access to the best partners, suppliers
and collaborators, including funding sources.

As part of our growth plan in this business, we come

evaluating and preparing our participation in new processes of
concessions announced by the Peruvian government, and, in addition, we have
a significant number of private initiatives presented to various entities
governmental agencies that are following their evaluation and declaration process
of interest.

Currently, COSAPI Concessions is evaluating a portfolio of projects.

of concessions that exceed US$10 billion.

COSAPI REAL ESTATE

COSAPI Inmobiliaria se enfoca en promover y administrar proyectos de
housing. Currently, it has several real estate projects in development.
in the city of Lima, including the Duplo project which consists of the
construction of two 28-story towers with approximately 400
departments in Breña; and the projects Nesta in Jesús María and Velia in
Lynx.

COSAPI Real Estate has the great challenge of developing projects that improve the
quality of life of the people and that in turn actively contribute with the
generation of a better city. The brand bases its differentiation pillars
in the trust and in the trajectory of the company.

Cost of real estate project development

Represents the disbursements made for project development.
which accumulate until the start of the project, date at which it is transferred
as participation of the joint venture established for the development of
project
The Peruvian economy recovered from the weak growth of 2017, growing at
4.0% during 2018. This growth is explained by the increase in the
public investment, the start of new mining investments, and the development of
real estate sector where Cosapi has continued to invest successfully.
The financial difficulties of the construction sector explain that Cosapi
would grow at an annual rate of only 6%, reaching a turnover of 1,640
millions of soles. The growth of operating profit was 28%, and the
net profit was 20 million soles, 10% lower than that of 2017. This lower
profitability is explained by higher financial costs and other charges
extraordinary expenses that the company had to incur. The cash flow
operating or EBITDA went from S/ 140 million to S/ 156 million, which means that the
The debt ratio improved from 2.15 times EBITDA to 1.67 times.
below the 3.5 established in the long-term bond contract of Cosapi,
issued in the Peruvian capital markets. During the fiscal year of 2018,
Cosapi alone or in partnership won contracts worth S/ 1,167 million, and ended the
exercise with a portfolio of signed contracts to be executed or backlog of US$
1.555 billion, equivalent to three years of accounting income for the fiscal year
2018. The reduction of the backlog is explained because we decided to sell our
participation in the Majes-Siguas irrigation project, which had been ongoing for more than
eight years semi-paralyzed. We think this decision has been good because
has allowed us to improve the company's liquidity.

2018 was a complicated year for the construction sector as it was

mainly marked by the alleged collusion case in the awarding of
various works with the state, in addition to political problems and events without
previous ones. Despite this, the total GDP experienced growth
moderately good at 4.0% during the year, while the GDP of the sector
construction grew by 5.4%, which meant a greater growth compared to the
registered in 2017.
Assets
At the close of 2018, our total assets reached PEN 1,336.8 million.
which represented a reduction of PEN 49.0 million compared to its level
from December 31, 2017. This is primarily explained by the
variations of current assets that decreases compared to the cut-off of 2017 in
PEN 20.7 million, as well as the non-current asset which has an effect
similar decreasing by PEN 28.3 million.

CURRENT ASSET
Cash and cash equivalents - The item cash and cash equivalent of
The cash in the consolidated statement of financial position includes cash.
in banks, in cash, and deposits with maturities of three months or less.
For the purposes of preparing the consolidated statement of cash flows, the
Cash and cash equivalents include what was previously defined.
Inventories - Inventories are valued at cost or net realizable value,
the least. The costs incurred to bring the inventories to their
Current location and conditions are accounted for as follows:
Materials, supplies, and spare parts: Purchase cost. The cost is determined
using the weighted average method.
Financial assets
Initial recognition and measurement: With the adoption of IFRS 9,
financial assets within their scope are classified based on the model of
business and the characteristics of contractual flows, measured by: Cost
amortized
Fair value with changes in other comprehensive income (FVOCI for its acronym)
Fair value with changes in results (FVPL for its initials in Spanish)
The Group determines the classification of financial assets at
moment of its initial recognition.
All financial assets are initially recognized at their fair value.
more, in the case of financial assets that are not accounted for at value
reasonable with changes in results, the directly attributable costs. The
purchases or sales of financial assets that require the delivery of the assets
within a time period established by a rule or convention of the
transactions are recognized on the date of the sale, that is, the date on which
The group commits to buy or sell the asset.
Inventarios por recibir:
Purchase cost. - Costs of works in progress: Outlay incurred during
the period. In the real estate segment, the value of inventories includes the
cost of land acquisition, transfer tax, planning costs
of design, costs of the contractors who carry out the enablement and
construction of the apartments, and other related costs. The net value
the selling price estimated in the normal course of the
business operations based on market prices of the date of
presentation of the financial information, less the estimated costs of
termination and the variable costs and expenses that are necessary for it
marketing.
An asset is classified as current when the entity: - Expects to realize the
active or intends to sell it or consume it in its normal cycle of
operation. - Maintains the asset mainly for trading purposes. -
Expect to complete the asset within the twelve months following the period on
the one who is informed; or - The asset is cash or cash equivalent, unless
that is restricted and cannot be exchanged or used for
cancel a liability for a minimum period of twelve months following
period covered by the report.