The following table shows the periods in which the Group expects the amounts recorded in equity at 31 December 2021 for the instruments designated as cash flow hedges to have an impact on profit or loss:
| 31/12/2021 | |||||
|---|---|---|---|---|---|
| Amount recorded in equity of controlled companies |
Amount recycled in profit or loss | ||||
| (en millions d’euros) | Within 1 year | Between 1 and 2 years |
Between 2 and 5 years |
After 5 years | |
| Total interest rate derivatives designated as cash flow hedges for accounting purposes |
(186) | (4) | (13) | (23) | (146) |
| of which existing instruments | (130) | (1) | (8) | (9) | (112) |
| of which unwound instruments | (56) | (3) | (5) | (14) | (34) |
| Interest rate swaps | ||||||
|---|---|---|---|---|---|---|
| (en millions d’euros) | Fair value | Notional | Within 1 year | Between 1 and 2 years |
Between 2 and 5 years |
After 5 years |
| 31/12/2021 | 2 | 775 | - | 700 | - | 75 |
| 31/12/2020 | 3 | 425 | - | - | 350 | 75 |
At 31 December 2021, non-hedging derivative instruments related in particular to swaps arranged as anticipatory hedges at Arcour, which no longer met the criteria for hedge accounting.
Almost 67% of VINCI’s revenue is generated in the eurozone. Contracts outside the eurozone are generally carried out in the local currency in respect of local subsidiaries’ activities, and usually in euros and dollars in the case of major export projects. The Group’s exposure to currency risk is therefore limited.
VINCI’s foreign currency risk management policy consists of hedging the transactional risk connected with subsidiaries’ commercial or financial flows denominated in currencies other than their functional currency.
In addition, the Group’s strategy is intended to minimise asset-related exchange rate risk. Through regular monitoring, hedging levels are adjusted in line with currency exposures relating to net assets owned. A risk analysis is carried out for each new investment to decide whether or not to hedge the exposure, by converting euro-denominated financing into foreign currency or financing directly in foreign currency.
Transactions in exchange rate derivatives carried out by the Group, intended in particular to hedge its financial transactions, break down as follows:
| 31/12/2021 | ||||||
|---|---|---|---|---|---|---|
| (en millions d’euros) | Balance sheet fair value |
Notional | Within 1 year |
Between 1 and 2 years |
Between 2 and 5 years |
After 5 years |
| Forward foreign exchange transactions | 4 | 226 | 204 | 6 | 15 | - |
| Cash flow hedges (*) | 4 | 226 | 204 | 6 | 15 | - |
| Currency swaps (incl. cross currency swaps) | (141) | 2,597 | 474 | 109 | 838 | 1,177 |
| Hedges of net foreign investments (*) | (142) | 2,597 | 474 | 109 | 838 | 1,177 |
| Currency swaps (incl. cross currency swaps) | (18) | 589 | 150 | 146 | 224 | 69 |
| Forward foreign exchange transactions | (1) | 438 | 438 | - | - | - |
| Foreign currency exchange rate derivatives not designated as hedges for accounting purposes |
(19) | 1,027 | 588 | 146 | 224 | 69 |
| Total foreign currency exchange rate derivatives | (156) | 3,850 | 1,267 | 261 | 1,077 | 1,245 |
(*) Changes in the fair value of the hedging instrument are recognised under “Other comprehensive income” (OCI) for the effective portion and in the income statement for the period for the ineffective portion.
| 31/12/2020 | ||||||
|---|---|---|---|---|---|---|
| (en millions d’euros) | Balance sheet fair value |
Notional | Within 1 year |
Between 1 and 2 years |
Between 2 and 5 years |
After 5 years |
| Forward foreign exchange transactions | 1 | 70 | 70 | - | - | - |
| Cash flow hedges (*) | 1 | 70 | 70 | - | - | - |
| Currency swaps (incl. cross currency swaps) | 16 | 2,863 | 586 | 156 | 962 | 1,159 |
| Couverture d’investissement net (*) | 16 | 2,863 | 586 | 156 | 962 | 1,159 |
| Currency swaps (incl. cross currency swaps) | 5 | 465 | 57 | 142 | 203 | 63 |
| Forward foreign exchange transactions | 1 | 192 | 192 | - | - | - |
| Foreign currency exchange rate derivatives not designated as hedges for accounting purposes |
6 | 657 | 249 | 142 | 203 | 63 |
| Total foreign currency exchange rate derivatives | 23 | 3,590 | 905 | 298 | 1,165 | 1,222 |
(*) Changes in the fair value of the hedging instrument are recognised under “Other comprehensive income” (OCI) for the effective portion and in the income statement for the period for the ineffective portion.
