Retirement benefit obligations are calculated on the basis of the following actuarial assumptions:
| 31/12/2022 | 31/12/2021 | |
|---|---|---|
| Discount rate | Discount rate 31/12/2022 3.25% |
Discount rate 31/12/2021 1.05% |
| Inflation rate | Inflation rate 31/12/2022 2.0% |
Inflation rate 31/12/2021 1.8% |
| Rate of pension increases | Rate of pension increases 31/12/2022 2.0% |
Rate of pension increases 31/12/2021 1.8% |
| Rate of salary increases | Rate of salary increases 31/12/2022 3.0% |
Rate of salary increases 31/12/2021 2.8% |
Other provisions relate in particular to:
Marketable securities are recognised at their acquisition cost and an impairment loss is recorded at the period end whenever the cost is higher than the latest net realisable value.
Loans (bonds, bank and intercompany borrowings) are recorded under liabilities at their nominal value. The associated issuance costs are recorded under “Deferred expenses”, redemption premiums under assets, and issuance premiums under “Deferred income”. These three items are amortised using the straight-line method over the length of the loan.
Loans and advances are recognised at nominal value. In the event of a risk of non-recovery, an impairment allowance is recognised.
| (in € millions) | 2022 | 2021 |
|---|---|---|
| Bonds | Bonds 2022 (6,871) |
Bonds 2021 (6,933) |
| Borrowings from financial institutions | Borrowings from financial institutions 2022 (28) |
Borrowings from financial institutions 2021 (13) |
| Accrued interest on bonds | Accrued interest on bonds 2022 (51) |
Accrued interest on bonds 2021 (49) |
| Long-term financial debt | Long-term financial debt 2022 (6,950) |
Long-term financial debt 2021 (6,995) |
| Commercial paper | Commercial paper 2022 (1,932) |
Commercial paper 2021 – |
| Cash management current accounts of related companies | Cash management current accounts of related companies 2022 (4,495) |
Cash management current accounts of related companies 2021 (5,773) |
| Short-term financial debt | Short-term financial debt 2022 (6,427) |
Short-term financial debt 2021 (5,773) |
| Total financial debt | Total financial debt 2022 (13,377) |
Total financial debt 2021 (12,768) |
| Receivables connected to investments in subsidiaries and affiliates and loans | Receivables connected to investments in subsidiaries and affiliates and loans 2022 13,470 |
Receivables connected to investments in subsidiaries and affiliates and loans 2021 13,888 |
| Marketable securities | Marketable securities 2022 1,279 |
Marketable securities 2021 729 |
| Cash management current accounts of related companies | Cash management current accounts of related companies 2022 463 |
Cash management current accounts of related companies 2021 206 |
| Cash | Cash 2022 3,268 |
Cash 2021 2,384 |
| Short-term cash | Short-term cash 2022 5,010 |
Short-term cash 2021 3,319 |
| Net financial surplus/(debt) | Net financial surplus/(debt) 2022 5,102 |
Net financial surplus/(debt) 2021 4,439 |
VINCI’s net financial surplus increased by €663 million in 2022, from €4,439 million at 31 December 2021 to €5,102 million at 31 December 2022.
The change in long-term financial debt resulted from financing arranged in 2022 (see paragraph 1 of section A, “Key events in the period”, page 379).
Borrowings mainly consist of bonds denominated in euros (€4,895 million), dollars ($1,069 million) and sterling (£902 million). Those bonds pay coupons at rates of between 0% and 3.971%, and they are due to mature between December 2023 and March 2039.
Euro-denominated bond issues include €500 million of 8-year zero-coupon green bonds issued in 2020. That bond issue enabled the Group to diversify its funding sources by accessing a new set of bond investors focused on ESG criteria.
At 31 December 2022, VINCI also had €1,932 million of commercial paper outstanding.
Financial debt and receivables connected to investments in subsidiaries and affiliates include any related currency translation differences.
