2021 UNIVERSAL REGISTRATION DOCUMENT

D. Risk factors and management procedures

Managing the Group’s activities includes taking into account the principal risks detailed in the table below. The level of criticality of each of these risks (high, intermediate or moderate) was determined on the basis of its probability of occurrence, the anticipated extent of its adverse impact at Group level and in consideration of risk management procedures already in place so as to show the net impact.

This chapter includes a specific description of the impact of the Covid-19 pandemic in 2021, which is also summarised in the table below.

(*) Level of risk determined on the basis of the monitoring frequency and extent of impact (high, intermediate or moderate)

Additionally, with regard to the current situation between Russia and Ukraine, the Group notes that its economic and balance sheet exposure to these two countries is not material:

• In 2021, VINCI Construction generated revenue of around €30 million in Russia and Ukraine.
• VINCI Concessions has several ownership interests in Russia, primarily its 50% stake in the concession company for section 0 of the Moscow–St Petersburg motorway (M11), its 40% stake in the company set up to operate sections 7 and 8 of this same motorway under a public-private partnership, and its 50% stake in a road operations company. These interests, which are accounted for under the equity method in the Group’s consolidated financial statements, made only a marginal contribution to VINCI’s income in 2021 and represented a negligible part of its capital employed during the year.

1. Impact of Covid-19 in 2021

Despite the ramp-up of vaccination campaigns worldwide, 2021 was impacted by the development of the health crisis. The resurgence of the pandemic at the beginning and end of 2021 – related in particular to the appearance of new variants – led to the implementation of new restrictive measures in many countries: quarantines, bans on social gatherings, closure of non-essential public places, travel restrictions or bans, lockdowns affecting a proportion of the population, curfews, border closings, etc.

Against this background, earnings generated by the Group’s concessions activities were hampered by low levels of air traffic and, to a lesser extent, by the slight decline in motorway traffic levels compared with 2019. By implementing the health and safety recommendations issued by professional organisations and local authorities, the Group’s Energy and Construction businesses were able to continue to operate despite the pandemic. Active in buoyant sectors and supported by strong order books, they saw their top line increase compared with 2019. As a result, they are reporting wider operating margins than before the crisis – despite the higher costs and raw material and labour shortages seen in 2021 – thanks to good management of operations and contracts.

In 2021, the pandemic affected the following risk factors:

Operational risks: operating phase for Concessions business

As was the case for the world’s air transport sector as a whole, passenger numbers in the VINCI Airports network were hit hard by the Covid-19 pandemic and the travel restrictions it caused. Nevertheless, after a particularly difficult start to the year, passenger numbers saw a gradual recovery, beginning in the third quarter of 2021. Over the full year, passenger numbers were slightly higher than in 2020 – and significantly below pre-crisis levels – with sharp contrasts from one geographical area to another.

Traffic levels on VINCI Autoroutes’ networks were impacted by the travel restrictions implemented in the first half of 2021 in France, including the curfew in place until 20 June 2021, the lockdown from 3 April to 3 May 2021, including a ban on travelling more than 10 km from the home, the closure of many public places and limitations on travel between countries. When travel restrictions were lifted in June, motorway traffic quickly bounced back. During the second half of 2021, it exceeded that of 2019.