At 31 December 2022 and in accordance with IAS 32, the Group’s financial assets and liabilities (including derivative financial instruments) are not netted on the balance sheet, except where the Group has netting agreements. In the event of default by the Group or the financial institutions with which it has contracted, these agreements provide for netting between the fair values of assets and liabilities arising from derivative financial instruments presented in the consolidated balance sheet.
The table below sets out the Group’s net exposure arising from these netting agreements:
| 31/12/2022 | 31/12/2021 | |||||
|---|---|---|---|---|---|---|
| (in € millions) | Fair value of derivatives recognised on the balance sheet | Impact of netting | Total | Fair value of derivatives recognised on the balance sheet | Impact of netting | Total |
| Derivative financial instruments - assets | 498 | (185) | 313 | 894 | (323) | 571 |
| Derivative financial instruments - liabilities | (2,393) | 185 | (2,208) | (944) | 323 | (621) |
| Net derivative instruments | (1,896) | (1,896) | (50) | (50) | ||
(*) Gross amounts as stated on the Group’s consolidated balance sheet.
At 31 December 2022, the Group held 25,790,809 VINCI shares (representing 4.38% of the share capital) acquired at an average price of €80.95. Increases or decreases in the stock market price of these treasury shares have no impact on the Group’s consolidated profit or loss or equity.
In addition, VINCI has an 8% stake in Groupe ADP. At each balance sheet date, this investment is measured at fair value on the basis of the stock market price. A positive or negative change of 100 basis points in the latter would lead respectively to the recognition of an upward or downward €10 million adjustment in the income statement.
Regarding assets to cover retirement benefit obligations, a breakdown by asset type is given in Note K.29.1, “Provisions for retirement benefit obligations”.
Certain Group entities are exposed to inflation risk, particularly London Gatwick airport, since part of its revenue is linked to local inflation.
To protect against a fall in inflation, inflation swaps (receiving fixed or floating rate and paying inflation) have been arranged.
Most of the Group’s revenue arises either from contracts that include price revision clauses or under short-term contracts. The risks associated with an increase in commodity prices are therefore generally limited.
For major contracts with no price revision clauses, commodity price risk is analysed on a case-by-case basis and managed, depending on the case, by negotiating firm price agreements with suppliers, cash-and-carry deals or hedging derivatives based on commodity indexes.VINCI Construction has set up a policy to manage bitumen price risks on part of its exposure through short-maturity hedging derivatives (swaps of less than three months on average). This policy applies to small contracts in France with an average length of less than three months and which do not include price revision clauses.
As part of its business, Cobra IS may enter into energy hedge contracts to mitigate its exposure to adverse changes in electricity and gas prices.
VINCI uses little unprocessed raw material, other than the aggregates produced and used by VINCI Construction.
