At 31 December 2023, details of the instruments designated as cash flow hedges were as follows:
| non-inlcus | 31/12/2023 | |||||
|---|---|---|---|---|---|---|
| (in € millions) | Fair value | Notional | Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 years |
| Receive floating/pay fixed interest rate swaps (incl. cross currency swaps) | 14 | 11,330 | 4,411 | 5,639 | 666 | 614 |
| Interest rate options (caps, floors and collars) | (8) | 1,472 | 10 | 1,460 | 2 | - |
| Total interest rate derivatives designated as cash flow hedges for accounting purposes | 6 | 12,803 | 4,421 | 7,099 | 668 | 614 |
| of which hedging of contractual cash flows | 6 | 12,803 | 4,421 | 7,099 | 668 | 614 |
| non-inlcus | 31/12/2022 | |||||
|---|---|---|---|---|---|---|
| (in € millions) | Fair value | Notional | Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 years |
| Receive floating/pay fixed interest rate swaps (incl. cross currency swaps) | 324 | 2,868 | 278 | 164 | 980 | 1,446 |
| Interest rate options (caps, floors and collars) | - | 16 | 5 | 5 | 6 | - |
| Total interest rate derivatives designated as cash flow hedges for accounting purposes | 324 | 2,884 | 283 | 169 | 986 | 1,446 |
| of which hedging of contractual cash flows | 324 | 2,884 | 283 | 169 | 986 | 1,446 |
The following table shows the periods in which the Group expects the amounts recorded in equity at 31 December 2023 for the instruments designated as cash flow hedges to have an impact on profit or loss:
| non-inclus | 31/12/2023 | ||||
|---|---|---|---|---|---|
| non-inclus | Amount recorded in equity of controlled companies | Amount recycled in profit or loss | |||
| (in € millions) | Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 years | |
| Total interest rate derivatives designated as cash flow hedges for accounting purposes | (47) | (8) | (10) | (7) | (22) |
| of which existing instruments | 6 | (3) | (5) | 7 | 6 |
| of which unwound instruments | (53) | (5) | (5) | (15) | (29) |
27.1.3 Description of non-hedging transactions
| non-inclus | Interest rate swaps | |||||
|---|---|---|---|---|---|---|
| (in € millions) | Fair value | Notional | Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 years |
| 31/12/2023 | (1) | 100 | 25 | - | - | 75 |
| 31/12/2022 | (5) | 2,297 | 2,222 | - | - | 75 |
At 31 December 2023, non-hedging transactions mainly correspond to hedges of commercial paper and a constant maturity swap (CMS) bond.
Nature of the Group’s risk exposure
VINCI generates approximately 60% of its revenue in the eurozone. Contracts outside the eurozone are generally carried out in the local currency in respect of local subsidiaries’ activities, and usually in euros and dollars in the case of major export projects. The Group’s exposure to exchange rate risk is therefore limited.
VINCI’s exchange rate risk management policy consists of hedging the transactional risk connected with subsidiaries’ commercial or financial flows denominated in currencies other than their functional currency.
In addition, the Group’s strategy is intended to minimise asset-related exchange rate risk. Through regular monitoring, hedging levels are adjusted in line with currency exposures relating to net assets owned. A risk analysis is carried out for each new investment to decide whether or not to hedge the exposure, by converting euro-denominated financing into foreign currency or financing directly in foreign currency.
