2022 Universal Registration Document

Key Data

10. Investments in companies accounted for under the equity method: associates and joint ventures

Accounting policies

Investments in companies accounted for under the equity method are initially recognised at the cost of acquisition, including acquisition costs and any goodwill. Their carrying amount is then increased or decreased to recognise the Group’s share of the entity’s profits or losses after the date of acquisition. Whenever the cumulative losses are greater than the value of the Group’s net investment in the equity-accounted company, the portion of those losses exceeding the value of the investment is not taken to income unless the Group has entered into a commitment to recapitalise the company or provide it with funding.

If there is an indication that an impairment loss has arisen for an equity-accounted investment, the recoverable amount is tested in a way similar to that described in Note E.9.2, “Goodwill impairment tests”. Impairment losses shown by impairment tests are recognised in profit and loss and as a deduction from the carrying amount of the corresponding investments.

The profit or loss of companies accounted for under the equity method is reported on a specific line for the determination of recurring operating income.

The terms “associates” and “joint ventures” are defined in Note A.2.2, “Consolidation methods”.

10.1 Movements during the period

  2022 2021
(in € millions) Associates Joint ventures Total Associates Joint ventures Total
Value of shares at beginning of period 438 512 950 428 608 1,035
of which Concessions 32 321 353 31 420 451
of which VINCI Energies 6 6 12 10 8 18
of which Cobra IS 5 13 17 - - -
of which VINCI Construction 393 92 485 384 86 470
of which VINCI Immobilier 2 80 82 2 95 96
Increase in share capital of companies accounted for under the equity method 7 2 10 – (4) (4)
Group share of profit or loss for the period 17 5 22 28 (16) 12
Group share of other comprehensive income for the period 47 313 361 3 112 114
Dividends paid (12) (80) (92) (17) (94) (112)
Changes in consolidation scope and other 10 2 13 4 (40) (36)
Reclassifications (*) (14) (235) (249) (6) (54) (60)
Value of shares at end of period 493 521 1,014 438 512 950
of which Concessions 78 319 397 32 321 353
of which VINCI Energies 10 5 15 6 6 12
of which Cobra IS 10 15 26 5 13 17
of which VINCI Construction 393 92 486 393 92 485
of which VINCI Immobilier 2 90 91 2 80 82

(*) Reclassifications of shares in the negative net equity of equity-accounted companies under provisions for financial risks.

NB: The terms “associates” and “joint ventures” are defined in Note A.2.2, “Consolidation methods”.

At 31 December 2022, the Group’s interests in companies accounted for under the equity method mainly included, for the Concessions business, the stake in Kansai Airports (€127 million) and, for VINCI Construction, the stake in DEME (€260 million) after it was spun off from CFE in June 2022.

Impacts included under “Group share of other comprehensive income for the period” relate mainly to cash flow hedging transactions (interest rate hedges) on concession and public-private partnership projects.

10.2 Aggregated financial information

The contribution of equity-accounted companies to the Group’s consolidated comprehensive income is as follows:

  2022 2021
(in € millions) Associates Joint ventures Total Associates Joint ventures Total
Net income 17 5 22 28 (16) 12
of which Concessions 20 (59) (39) 1 (94) (93)
of which VINCI Energies 4 2 6 4 4 8
of which Cobra IS 7 17 24 - - -
of which VINCI Construction (14) 21 7 23 24 47
of which VINCI Immobilier - 25 25 - 50 50
Other comprehensive income 47 313 361 3 112 114
of which Concessions 36 326 362 7 112 119
of which VINCI Construction 12 (13) (1) (4) - (4)
Comprehensive income 65 319 383 30 96 126
of which Concessions 56 267 323 8 18 26
of which VINCI Energies 4 2 6 4 4 8
of which Cobra IS 7 17 24 - - -
of which VINCI Construction (3) 8 5 19 24 43
of which VINCI Immobilier - 25 25 - 50 50