They are included in the “Other current liabilities” item on the liabilities side of the consolidated balance sheet.
Where a payment due to the Group is dependent on the transfer of other goods or services and/or the completion of milestones or stages defined in the contract, the Group regards the amount representing that “conditional” right as a contract asset.
Amounts relating to any Group obligation to transfer goods or services for which it has already received a payment, or for which the right to such payment is enforceable, are regarded as contract liabilities under IFRS 15.
If the estimate of the final outcome of a contract indicates a loss, a provision is made for the loss on completion in accordance with IAS 37, regardless of progress towards completion, and based on the best estimates of income, including, if need be, any rights to additional revenue or claims, where it is regarded as highly probable and can be reliably estimated. Provisions for losses on completion are shown under liabilities (see Note H.19.3, “Breakdown of current provisions”).
| Changes | |||||
|---|---|---|---|---|---|
| (in € millions) | 31/12/2022 | Business-related changes | Changes in consolidation scope | Other changes (*) | 31/12/2021 |
| VINCI Energies | 3,175 | 383 | 24 | (9) | 2,777 |
| Cobra IS | 1,724 | 448 | 6 | 36 | 1,234 |
| VINCI Construction | 4,259 | 614 | 1 | (7) | 3,651 |
| VINCI Immobilier | 452 | 265 | (8) | – | 195 |
| Contract assets | 9,609 | 1,709 | 24 | 20 | 7,857 |
| of which advances paid | 695 | 233 | (4) | 2 | 464 |
(*) Including currency translation differences.
Contract assets relate to the portion of performance obligations fulfilled by the Group for which the definitive right to be paid is subject to the completion of works specified in the relevant contracts. Contract assets turn into receivables as these works are accepted by the client, giving rise to the Group’s unconditional right to be paid.
| Changes | |||||
|---|---|---|---|---|---|
| (in € millions) | 31/12/2022 | Business-related changes | Changes in consolidation scope | Other changes (*) | 31/12/2021 |
| VINCI Energies | 3,393 | 194 | 2 | (2) | 3,199 |
| Cobra IS | 864 | 307 | 1 | – | 556 |
| VINCI Construction | 4,164 | 666 | 2 | (11) | 3,507 |
| VINCI Immobilier | 478 | 66 | 5 | – | 408 |
| Contract liabilities | 8,899 | 1,234 | 9 | (13) | 7,670 |
| of which advances received | 2,753 | 596 | – | (12) | 2,169 |
(*) Including currency translation differences.
Those liabilities mainly correspond to advances and payments on account received on orders and other current liabilities, such as prepaid income. The fulfilment of the performance obligations extinguishes these liabilities and results in the recognition of the corresponding revenue.
| (in € billions) | 31/12/2022 | Book-to-bill ratio (number of months of average business activity represented by the order book) |
|---|---|---|
| VINCI Energies |
VINCI Energies 31/12/2022 12.4 |
VINCI Energies Book-to-bill ratio (number of months of average business activity represented by the order book)8.9 |
| Cobra IS |
Cobra IS 31/12/2022 11.1 |
Cobra IS Book-to-bill ratio (number of months of average business activity represented by the order book)24.1 |
| VINCI Construction |
VINCI Construction 31/12/2022 33.8 |
VINCI Construction Book-to-bill ratio (number of months of average business activity represented by the order book)13.9 |
| VINCI Immobilier |
VINCI Immobilier 31/12/2022 1.2 |
VINCI Immobilier Book-to-bill ratio (number of months of average business activity represented by the order book)n/a |
The order book for the VINCI Energies, Cobra IS and VINCI Construction business lines represents the volume of business yet to be carried out on projects where the contract is in force (generally after service orders have been obtained or after conditions precedent have been met) and financed.
At 31 December 2022, the combined order book of VINCI Energies, Cobra IS and VINCI Construction stood at €57.3 billion, up 8.6% year on year (€52.7 billion at 31 December 2021), representing more than 13 months of business activity for these business lines.
VINCI Immobilier’s order book corresponds to the revenue, recognised on a progress towards completion basis, that is yet to be generated with respect to property sales confirmed by a notarised deed or with respect to property development contracts on which the works order has been given by the project owner. It amounted to €1.2 billion at 31 December 2022, down 12.5% year on year (€1.3 billion at 31 December 2021).
