At the balance sheet date, the fair value of derivative financial instruments broke down as follows:
| non-inclus | non-inclus | non-inclus | 31/12/2023 | 31/12/2022 | ||||
|---|---|---|---|---|---|---|---|---|
| (in € millions) | Balance sheet item | Note | Asset | Liability | Fair value(*) | Asset | Liability | Fair value(*) |
| Derivatives related to net financial debt | ||||||||
| Interest rate derivatives: fair value hedges | 27.1.2 | 89 | 1,223 | (1,134) | 82 | 1,920 | (1,838) | |
| Interest rate derivatives: cash flow hedges | 27.1.2 | 56 | 49 | 6 | 330 | 6 | 324 | |
| Interest rate derivatives not designated as hedges | 27.1.3 | 4 | 5 | (1) | 9 | 14 | (5) | |
| Interest rate derivatives | Net financial debt | 149 | 1,277 | (1,129) | 422 | 1,940 | (1,518) | |
| Exchange rate derivatives: fair value hedges | 27.2 | - | - | - | - | - | - | |
| Exchange rate derivatives: cash flow hedges | 27.2 | 5 | - | 5 | 4 | 1 | 4 | |
| Exchange rate derivatives: hedges of net foreign investments | 27.2 | 20 | 34 | (14) | 39 | 44 | (4) | |
| Exchange rate derivatives not designated as hedges | 27.2 | 8 | 21 | (13) | 9 | 40 | (31) | |
| Exchange rate derivatives | Net financial debt | 34 | 55 | (21) | 53 | 84 | (31) | |
| Other derivatives | Net financial debt | 36 | 401 | (365) | 17 | 355 | (338) | |
| Derivatives related to WCR | ||||||||
| Exchange rate derivatives: fair value hedges | 27.2 | 3 | 2 | - | 3 | 3 | - | |
| Exchange rate derivatives: cash flow hedges | 27.2 | 3 | 6 | (3) | 2 | 11 | (9) | |
| Exchange rate derivatives | Working capital requirement | 5 | 8 | (3) | 5 | 14 | (9) | |
| Other derivatives | Working capital requirement | 6 | 7 | (2) | 2 | - | 1 | |
| Total derivative financial instruments | 230 | 1,749 | (1,519) | 498 | 2,393 | (1,896) | ||
(*) Fair value includes interest accrued but not matured of €1 million at 31 December 2023 and €53 million at 31 December 2022.
The asset related exchange rate risk related to ownership of assets in foreign currencies is generally, where possible, hedged by financial debt denominated in the same currency.
Interest rate risk is managed within the Group, making a distinction between the Concessions business on the one hand, and the activities of the Energy and Construction businesses and the holding companies on the other, as their respective financial profiles are not the same.
For concession subsidiaries, interest rate risk is managed with two timescales: the long term, aiming to ensure and maintain the concession’s economic equilibrium, and the short term, with an objective of limiting the impact of the cost of debt on earnings for the period.
Over the long term, the objective is to ensure that the breakdown between fixed and floating rate debt is adjusted according to the level of debt, with a greater proportion at fixed rate when the level of debt is high relative to Ebitda. The Energy and Construction businesses and the holding companies have a structural net operating cash surplus. For these activities, the objective is to ensure that financial assets and financial liabilities are well matched in terms of maturity.
To hedge its interest rate risk, the Group uses derivative financial instruments in the form of swaps or options of which the start may be deferred. These derivatives may be designated as hedges for accounting purposes or not, in accordance with the IFRSs. The Group takes care to ensure that the ineffective portion of hedges is not material.
27.1.1 Long-term financial debt before and after interest rate hedging and sensitivity to interest rate risk
Long-term financial debt before and after interest rate hedging
This table shows the breakdown at 31 December 2023 of long term debt between the fixed-rate portion for the coming year, the capped floating rate or inflation linked portion, and the portion at floating rate before and after taking account of hedging derivative financial instruments:
| non-inclus | Breakdown between fixed and floating rate before hedging | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed rate | Inflation-linked | Floating rate | Total | ||||||||
| (in € millions) | Debt | Proportion | Rate | Debt | Proportion | Rate | Debt | Proportion | Rate | Debt | Rate |
| Concessions | 16,406 | 84% | 2.80% | 527 | 3% | 6.18% | 2,624 | 13% | 8.70% | 19,557 | 3.68% |
| VINCI Energies | 38 | 100% | 1.44% | 38 | 1.44% | ||||||
| Cobra IS | 0 | 0% | - | 987 | 100% | 4.95% | 987 | 4.95% | |||
| VINCI Construction | 63 | 79% | 2.97% | 16 | 21% | 7.01% | 79 | 3.81% | |||
| Holding companies | 7,384 | 95% | 2.07% | 375 | 5% | 3.41% | 7,759 | 2.13% | |||
| Total at 31/12/2023 | 23,891 | 84% | 2.57% | 527 | 2% | 6.18% | 4,002 | 14% | 7.27% | 28,420 | 3.30% |
| Total at 31/12/2022 | 23,602 | 87% | 2.49% | 345 | 1% | 8.18% | 3,296 | 12% | 5.18% | 27,243 | 2.88% |
