At 31 December 2021, the breakdown of property, plant and equipment by business line was as follows:
| Concessions | Energy | Construction | ||||
|---|---|---|---|---|---|---|
| (in € millions) | VINCI Autoroutes VINCI Airports Other concessions | VINCI Energies | Cobra IS | VINCI Construction | VINCI Immobilier and holding companies | Total |
| Concession operating fixed assets | 1,050 | - | - | - | - | 1,050 |
| Land | 146 | 53 | 10 | 691 | 96 | 997 |
| Constructions and investment property | 1,492 | 180 | 119 | 514 | 455 | 2,760 |
| Plant, equipment and fixtures | 1,069 | 332 | 49 | 1,832 | 129 | 3,412 |
| Right-of-use assets in respect of leases | 310 | 827 | 85 | 685 | 177 | 2,084 |
| Total at 31 December 2021 | 4,067 | 1,392 | 264 | 3,724 | 856 | 10,303 |
| Total at 31 December 2020 | 4,130 | 1,324 | - | 3,628 | 677 | 9,760 |
Impairment tests are performed on property, plant and equipment and intangible assets where evidence of an impairment loss arises. For intangible assets with an indefinite useful life and construction work in progress, a test is performed at least annually or whenever there is an indication that an asset may be impaired.
Assets to be tested for impairment losses are grouped within cash-generating units (CGUs) that correspond to homogeneous groups of assets that generate identifiable cash inflows from their use. In accordance with IAS 36, the criteria adopted to assess indications that an impairment loss has arisen are either external (e.g. a material change in market conditions) or internal (e.g. a material reduction in revenue), without distinction.
Other intangible assets include €6,591 million corresponding to the right to operate London Gatwick airport at 31 December 2021. Since that right to operate is analogous to a perpetual licence, it is not amortised but undergoes an impairment test once per year. That test was carried out at 31 December 2021 on the basis of the following assumptions:
At 31 December 2021, the recoverable amount of that right to operate, based on the above assumptions, remained higher than its net carrying amount.
Sensitivity calculations show that a increase of 50 basis points in the discount rate or a 5% decrease in projected operating cash flow would reduce value in use by €1.9 billion and €0.7 billion, respectively. Under these scenarios, value in use would remain higher than the net carrying amount for the right to operate the airport.
Given the uncertainty relating to the Covid-19 crisis, additional sensitivity tests were carried out at 31 December 2021. A 100 basis point increase in the discount rate would reduce value in use by €3.4 billion. In this case, value in use would still remain higher than the asset’s net carrying amount at 31 December 2021.
Financial assets measured at amortised cost mainly consist of loans and receivables. When first recognised, loans and receivables are recognised at their fair value less the directly attributable transaction costs. From the outset, the Group recognises impairment on its loans and receivables in relation to their risk of non-recovery, in accordance with IFRS 9 “Financial Instruments”.
At each balance sheet date, these assets are measured at their amortised cost using the effective interest method and the Group analyses credit risk to determine whether further impairment must be recognised. If credit risk is found to have increased, additional impairment is recognised in profit and loss, taking into account this risk over the asset’s life.
Loans and receivables at amortised cost mainly comprise receivables relating to shareholdings, including shareholders’ advances to concession or PPP project companies for €730 million (€775 million at 31 December 2020). They are presented on the asset side of the consolidated balance sheet under “Other non-current financial assets” (for the part at more than one year). The part at less than one year of loans and receivables is included under “Other current financial assets” for €78 million at 31 December 2021 (€12 million at 31 December 2020).
