The “Derivatives designated as hedges: assets and liabilities” item breaks down as follows:
| (in € millions) | 2022 | 2021 |
|---|---|---|
| Net interest on derivatives designated as fair value hedges | Net interest on derivatives designated as fair value hedges 2022133 |
Net interest on derivatives designated as fair value hedges 2021 275 |
| Change in value of interest rate derivatives designated as fair value hedges | Change in value of interest rate derivatives designated as fair value hedges 2022(2,320) |
Change in value of interest rate derivatives designated as fair value hedges 2021 (680) |
| Change in value of the adjustment to fair value hedged financial debt | Change in value of the adjustment to fair value hedged financial debt 20222,313 |
Change in value of the adjustment to fair value hedged financial debt 2021 644 |
| Ineffective portion of foreign currency fair value hedges | Ineffective portion of foreign currency fair value hedges 2022(1) |
Ineffective portion of foreign currency fair value hedges 2021 (1) |
| Reserve recycled through profit or loss in respect of cash flow and net investment hedges | Reserve recycled through profit or loss in respect of cash flow and net investment hedges 2022(76) |
Reserve recycled through profit or loss in respect of cash flow and net investment hedges 2021 (97) |
| Ineffective portion of cash flow and net investment hedges | Ineffective portion of cash flow and net investment hedges 20227 |
Ineffective portion of cash flow and net investment hedges 2021 (2) |
| Gains and losses on derivative instruments allocated to net financial debt | Gains and losses on derivative instruments allocated to net financial debt202257 | Gains and losses on derivative instruments allocated to net financial debt 2021 140 |
Other financial income and expense comprises mainly discounting effects, the impact of capitalised borrowing costs, foreign exchange gains and losses relating to financial items and changes in the value of equity instruments and derivatives not allocated to hedging interest rate or exchange rate risk, along with financial expense relating to lease liabilities under IFRS 16.
Capitalised borrowing costs relate to infrastructure under concession and are included during the construction period in the value of those assets. They are determined as follows:
This does not relate to the construction of concession assets accounted for using the financial asset model (see Note F.14, “PPP financial receivables”).
Other financial income and expense break down as follows:
| (in € millions) | 2022 | 2021 |
|---|---|---|
| Effect of discounting to present value | Effect of discounting to present value 202256 |
Effect of discounting to present value 2021 (30) |
| Capitalised borrowing costs | Capitalised borrowing costs 202229 |
Capitalised borrowing costs 2021 47 |
| Financial expenses on lease liabilities | Financial expenses on lease liabilities 2022(48) |
Financial expenses on lease liabilities 2021 (43) |
| Foreign exchange gains and losses and other changes in fair value | Foreign exchange gains and losses and other changes in fair value 2022243 |
Foreign exchange gains and losses and other changes in fair value 2021 66 |
| Total other financial income and expense | Total other financial income and expense2022279 | Total other financial income and expense 2021 40 |
In 2022, discounting effects represented income of €56 million as opposed to an expense of €30 million in 2021. The difference resulted mainly from the discounting effect arising from provisions for the obligation to maintain the condition of concession intangible assets, which represented income of €72 million (expense of €2 million in 2021), including €63 million at VINCI Autoroutes (expense of €3 million in 2021). The net financial expense arising from the discounting of provisions for retirement benefit obligations was stable at €14 million. Effects arising from the discounting of provisions for fixed fees payable to concession grantors in relation to Salvador airport in Brazil and Belgrade airport in Serbia represented an expense of €13 million.
Capitalised borrowing costs mainly related to VINCI Autoroutes, Belgrade airport in Serbia and London Gatwick airport in the United Kingdom.
There was a foreign exchange gain of €25 million in 2022 (€10 million in 2021). Other changes in fair value include the €94 million increase in the value of the stake in Groupe ADP and the €131 million gain arising from the early redemption of bonds by London Gatwick airport.
