In accordance with IAS 36 “Impairment of Assets”, the goodwill and other non-financial assets of cash-generating units (CGUs) were tested for impairment.
CGUs are identified in line with operational reporting and their recoverable amounts are based on a value in use calculation. Values in use are determined by discounting the forecast operating cash flow before tax of the CGU (operating income plus depreciation and amortisation plus/minus the change in non-current provisions minus operating investments plus/minus the change in operating working capital requirement) at the rates indicated below.
For concessions, cash flow projections are calculated across the length of contracts by applying a variable discount rate, determined for each period depending on the change in the debt to equity ratio of the entity in question.In the specific case of VINCI Airports, cash flow projections for fully owned airports are established over a 30-year period. At the end of that period, a terminal value is determined by capitalising the final year’s projected cash flow to infinity, and that value is discounted to present value.
For the other CGUs, cash flow projections are generally established for a five-year period on the basis of management forecasts. At the end of that period, a terminal value is determined by capitalising the final year’s projected cash flow to infinity, and that value is discounted to present value.
Goodwill impairment tests are carried out using the following assumptions:
|
Parameters of the model applied to cash flow projections |
Impairment losses recognised in the period |
|||||
|---|---|---|---|---|---|---|
| (en millions d’euros) | Growth rate (years Y+1 to Y+5) | Growth rate (terminal value) | Discount rate (**) | |||
| 31/12/2023 | 31/12/2022 | 2023 | 2022 | |||
| Cobra IS | 4.0% | 3.0% | 13.4 % | 11.3% | - | - |
| VINCI Airports | (*) | (*) | 10.5 % | 8.0% | (8) | - |
| VINCI Energies France | 3.0% | 2.0% | 10.0 % | 8.1% | - | - |
| ASF group | (*) | (*) | 10.3 % | 8.3% | - | - |
| VINCI Energies Germany | 3.0% | 2.0% | 9.7 % | 7.5% | - | - |
| VINCI Energies North America | 3.5% | 2.5% | 9.8 % | 9.0% | - | - |
| VINCI Energies Benelux | 3.0% | 2.0% | 10.3 % | 7.6% | - | - |
| VINCI Energies Scandinavia | 3.0% | 2.0% | 9.5 % | 7.2% | - | - |
| VINCI Highways | (*) | (*) | 11.4 % | 9.5% | - | - |
| Other | −0.6% to 13.0% | 1.0% to 3.5% |
8.8 % to 15.5 % |
6.3% to 15.1% | - | - |
| Total | (8) | - | ||||
(*) For concessions, cash flow projections are determined over the length of concession contracts. The average revenue growth rate for the ASF group, based on the residual periods of concession contracts, is 1.6%. Those used for VINCI Airports and VINCI Highways are 3.8% and 7.1% respectively.
(**) Before tax.
Impairment tests at 31 December 2023 were conducted on the basis of assumptions made by management at the business lines concerned, in line with macroeconomic forecasts in their business areas and geographies. The increase in discount rates reflects current economic conditions and financial market volatility.
The following points are worth noting:
