2022 Universal Registration Document

The Finance Department works with the Environment Department, which has been allocated specific resources for this purpose, to ensure that the commitments made by the Group are consistent with their recognition in the financial statements.

In VINCI’s view, its assessment of climate risks is taken into account correctly and is consistent with its commitments in this area. Factoring in these elements did not have any material impact on the Group’s 2022 financial statements.

3.2 Consequences of the conflict between Russia and Ukraine and the macroeconomic environment

Conflict between Russia and Ukraine

The direct financial consequences of the conflict between Russia and Ukraine are limited for the Group, since it does not have any material exposure to either country. The Group’s exposure mainly consists of equity interests held by VINCI Concessions in several companies in Russia: 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 the same motorway under a public-private partnership, and its 50% stake in a road operations company. The value of these interests has been written down to zero.

Macroeconomic environment

In a geopolitical and economic context that is uncertain and volatile, the Group is paying particularly close attention to the possible effects of cost inflation, disruption to certain supply chains and rising interest rates.

• In the Energy and Construction businesses

To protect itself against inflation, the Group has become more selective in terms of new contracts, and has decided to stop entering into medium- and long-term contracts if they do not include price adjustment clauses, except where specific provisions protect it from the risk of cost inflation or in special circumstances.

Most of the Group’s projects are relatively short in duration, particularly those carried out as part of the recurring business activities of VINCI Energies and Cobra IS and in roadworks, which means that changes in costs can be factored into quotes for new contracts to the extent possible. Some long-term contracts contain price adjustment clauses based on changes in sectoral indices. In particular, construction contracts signed with public sector customers in France fall into this category.

As regards the availability of the materials and equipment necessary to complete projects, VINCI’s decentralised organisation means that the Group’s companies have a diverse range of procurement sources, which is an advantage in the current operating environment. In addition, to guard against supply shortages, the Group’s companies may order some of their supplies ahead of time.

• In the Concessions business

Price increases relating to the infrastructure managed by the Group (motorways and airports) are generally determined by contractual provisions that take the level of inflation into account, thereby offsetting at least some of this risk.

• In the VINCI Immobilier business line

Rising interest rates have led to an increase in borrowing costs. Combined with higher prices, this trend is putting pressure on consumer demand for residential property. Meanwhile, investors in non-residential properties (offices) are now demanding higher yields.

Finally, the current macroeconomic environment has led to a tightening of monetary policy around the world and higher interest rates. This is making financing more expensive for the Group and its subsidiaries. Given the circumstances, VINCI is taking particular care to maintain its good level of liquidity (See Note J, “Financing and financial risk management”).

B. Changes in consolidation scope

1. Changes in consolidation scope during the period

As part of its growth strategy, VINCI has continued to pursue acquisitions. The main changes in the period relate to:

• the acquisition of a 29.99% stake in Mexican airport operator OMA, completed by VINCI Airports on 7 December 2022;
• the acquisition of most of Kontron AG’s IT services business by VINCI Energies on 29 December 2022;
• transactions by VINCI Highways to take control of TollPlus and Strait Crossing Development Inc. (SCDI).

Other changes in the period notably included the acquisition of around 30 companies by VINCI Energies, mainly in Europe, and VINCI Construction’s acquisition of 12 road construction companies from the Northern Group in Canada. Other changes in scope relate mainly to legal restructuring within the Group as well as the demerger of DEME from its parent company CFE.