Retirement benefit obligations are calculated on the basis of the following actuarial assumptions:
| 31/12/2021 | 31/12/2020 | |
|---|---|---|
| Discount rate | Discount rate 31/12/20211.05 % |
Discount rate 31/12/2020 0.80 % |
| Inflation rate | Inflation rate 31/12/20211.8 % |
Inflation rate 31/12/2020 1.6 % |
| Rate of pension increases | Rate of pension increases 31/12/20211.8 % |
Rate of pension increases 31/12/2020 1.6 % |
| Rate of salary increases | Rate of salary increases 31/12/20212.8 % |
Rate of salary increases 31/12/2020 2,6 % |
Other provisions relate in particular to VINCI’s obligation to deliver shares under the performance share plans adopted by the Board of Directors on 17 April 2019, 9 April 2020 and 8 April 2021. Provisions taken in this respect at 31 December 2021, for €178 million, €122 million and €56 million respectively, take account of the estimated probability, at 31 December 2021, that these shares will vest.
Marketable securities are recognised at their acquisition cost and an impairment loss is recorded at the period end whenever the cost is higher than the latest net realisable value.
Loans (bonds, bank and intragroup borrowing) are recorded under liabilities at their nominal value. The associated issuance costs are recorded under “Deferred expenses”, redemption premiums under assets, and issuance premiums under “Deferred income”. These three items are amortised over the length of the loan.
Loans and advances are recognised at nominal value. In the event of a risk of non-recovery, an impairment allowance is recognised.
| (in € millions) | 2021 | 2020 |
|---|---|---|
| Bonds | Bonds 20216,933 |
Bonds 2020 6,247 |
| Borrowings from financial institutions | Borrowings from financial institutions 202113 |
Borrowings from financial institutions 2020 256 |
| Accrued interest on bonds | Accrued interest on bonds 202149 |
Accrued interest on bonds 2020 45 |
| Long-term financial debt | Long-term financial debt20216,995 | Long-term financial debt 2020 6,548 |
| Borrowings from financial institutions and bank overdrafts | Borrowings from financial institutions and bank overdrafts 2021- |
Borrowings from financial institutions and bank overdrafts 2020 - |
| Other borrowings and financial debt | Other borrowings and financial debt 2021- |
Other borrowings and financial debt 2020 1,001 |
| Cash management current accounts of related companies | Cash management current accounts of related companies 20215,773 |
Cash management current accounts of related companies 2020 5,567 |
| Short-term financial debt | Short-term financial debt20215,773 | Short-term financial debt 2020 6,568 |
| Total financial debt |
Total financial debt 202112,768 |
Total financial debt 2020 13,116 |
| Receivables connected to investments in subsidiaries and affiliates and loans | Receivables connected to investments in subsidiaries and affiliates and loans2021(13,888) | Receivables connected to investments in subsidiaries and affiliates and loans 2020 (14,119) |
| Marketable securities | Marketable securities 2021(729) |
Marketable securities 2020 (3,774) |
| Cash management current accounts of related companies | Cash management current accounts of related companies 2021(206) |
Cash management current accounts of related companies 2020 (359) |
| Cash | Cash 2021(2,384) |
Cash 2020 (2,885) |
| Short-term cash | Short-term cash2021(3,319) | Short-term cash 2020 (7,018) |
| Net financial (surplus)/debt | Net financial (surplus)/debt2021(4,439) | Net financial (surplus)/debt 2020 (8,021) |
VINCI’s net financial surplus fell by €3,583 million in 2021, from €8,021 million at 31 December 2020 to €4,439 million at 31 December 2021.
The increase in long-term financial debt and receivables connected to investments in subsidiaries and affiliates resulted from financing arranged in 2021 (see section A, “Key events in the period”, page 355). Financial debt and receivables connected to investments in subsidiaries and affiliates include any related currency translation differences.
The cash management current accounts of related companies, shown under assets and liabilities, represent movements of cash between the holding company and the subsidiaries under the Group’s centralised cash management system.
Marketable securities mainly comprise certificates of deposit and money market UCITS with maturities of usually less than three months, whose carrying amount is close to their net asset value.
