2021 UNIVERSAL REGISTRATION DOCUMENT

General and financial elements

10. Investments in companies accounted for under the equity method: associates and joint ventures

Accounting policies

Investments in companies accounted for under the equity method are initially recognised at the cost of acquisition, including acquisition costs and any goodwill. Their carrying amount is then increased or decreased to recognise the Group’s share of the entity’s profits or losses after the date of acquisition. Whenever the cumulative losses are greater than the value of the Group’s net investment in the equity-accounted company, the portion of those losses exceeding the value of the investment is not taken to income unless the Group has entered into a commitment to recapitalise the company or provide it with funding.

If there is an indication that an impairment loss has arisen for an equity-accounted investment, the recoverable amount is tested in a way similar to that described in Note E.9.2, “Goodwill impairment tests”. Impairment losses shown by impairment tests are recognised in profit and loss and as a deduction from the carrying amount of the corresponding investments.

The profit or loss of companies accounted for under the equity method is reported on a specific line for the determination of recurring operating income.

The terms “associates” and “joint ventures” are defined in Note A.2.2, “Consolidation methods”.

10.1 Movements during the period

  2021 2020
(in € millions) Associates Joint ventures Total Associates Joint ventures Total
Value of shares at beginning of period
of which concessions
of which VINCI Energies
of which VINCI Construction
of which VINCI Immobilier 		428
31
10
384
2		 608
420
8
86
95		 1,035
451
18
470
96		 1,199
782
8
407
2		 671
491
3
80
98		 1,870
1,273
11
486
100
Increase in share capital of companies accounted for under the equity method - (4) (4) 1 8 9
Group share of profit or loss for the period 28 (16) 12 (50) (96) (146)
Group share of other comprehensive income for the period 3 112 114 (2) (42) (44)
Dividends paid (17) (94) (112) (5) (66) (71)
Changes in consolidation scope and other 4 (40) (36) (692) (2) (694)
Reclassifications (*) (6) (54) (60) (24) 136 112
Value of shares at end of period
of which concessions
of which VINCI Energies
of which Cobra IS
of whichVINCI Construction
of which VINCI Immobilier 		438
32
6
5
393
2 		512
321
6
13
92
80 		950
353
12
17
485
82 		428
31
10
-
384
2 		608
420
8
-
86
95 		1,035
451
18
-
470
96

(*) Reclassifications of shares in the negative net equity of equity-accounted companies under provisions for financial risks.

NB: The terms “associates” and “joint ventures” are defined in Note A.2.2, “Consolidation methods”.

At 31 December 2021, the Group’s interests in companies accounted for under the equity method included, for the Concessions business, the stake in Kansai Airports (€174 million) and, for VINCI Construction, the stake in the CFE group (€257 million).

Impacts included under “Group share of other comprehensive income for the period” relate mainly to cash flow hedging transactions (interest rate hedges) on concession and public-private partnership projects.

10.2 Aggregated financial information

The contribution of equity-accounted companies to the Group’s consolidated comprehensive income is as follows:

  2021 2020
(in € millions) Associates Joint ventures Total Associates Joint ventures Total
Net income
of which concessions
of which VINCI Energies
of which VINCI Construction
of which VINCI Immobilier 		28
1
4
23
- 		(16)
(94)
4
24
50 		12
(93)
8
47
50 		(50)
(45)
2
(7)
- 		(96)
(115)
2
2
15 		(146)
(160)
4
(5)
15
Other comprehensive income
of which concessions
of which VINCI Construction 		3
7
(4) 		112
112
- 		114
119
(4) 		(2)
10
(13) 		(42)
(46)
4 		(44)
(36)
(8)
Comprehensive income
of which concessions
of which VINCI Energies
of which VINCI Construction
of which VINCI Immobilier 		30
8
4
19
- 		96
18
4
24
50 		126
26
8
43
50 		(52)
(35)
2
(20)
- 		(138)
(161)
2
6
15 		(191)
(196)
4
(13)
15