For all post-employment benefit plans for Group employees (lump sums paid on retirement, pensions and supplementary pensions), a 0.5 point rise in the discount rate would decrease the actuarial liability by around 6%.
For all pension and supplementary pension plans in force within the Group, a 0.5 point increase in long-term inflation rates would increase the value of obligations by some 4%.
For pension and supplementary pension plans in Switzerland and the UK, sensitivity to mortality rates is calculated based on a one-year reduction in the age of each beneficiary. Applying this assumption decreases the corresponding obligation by around 1%.
In some countries, and more especially in France and Spain, the Group contributes to basic state pension plans, for which the expense recognised is the amount of the contributions called by the state bodies. These state pension plans are considered as being defined contribution plans.
The amounts taken as an expense in the period in respect of defined contribution plans (other than basic state plans) totalled €745 million in 2023 (€691 million in 2022). These amounts include the contributions paid in France to the external multi-employer fund (CNPO) in respect of obligations in regard to lump sums paid on retirement to construction workers.
Provisions for other long-term employee benefits mainly include long-service bonuses and jubilee bonuses.
At 31 December 2023, they amounted to €99 million, including €13 million for the part at less than one year (€98 million including €11 million for the part at less than one year at 31 December 2022).
Provisions for long-service bonuses and jubilee bonuses have been calculated using the following actuarial assumptions:
| non-inclus | 31/12/2023 | 31/12/2022 |
|---|---|---|
| Discount rate | 4.15% | 3.75% |
| Inflation rate | 2.00% | 2.00% |
| Rate of salary increases | 2.00% - 3.00% | 2.00% - 3.00% |
Accounting policies
The measurement and recognition methods for share subscription plans, Group savings plans and performance share plans, are defined by IFRS 2 “Share-based Payment”. The granting of performance shares and offers to subscribe to Group savings plans in France and abroad represent a benefit granted to their beneficiaries and therefore constitute supplementary remuneration borne by VINCI.
Because such transactions do not give rise to monetary transactions, the benefits granted in this way are recognised as expenses in the period in which the rights are acquired, with a corresponding increase in equity. Benefits are measured by an external actuary on the basis of the fair value of the equity instruments granted.
Benefits arising from awards of performance shares and Group savings plans are granted as decided by VINCI’s Board of Directors after approval at the Shareholders’ General Meeting. Since their measurement is not entirely linked to operational activity, it has been deemed appropriate not to include the corresponding expense in operating income from ordinary activities, which is an indicator of business lines’ performance, but to report it on a separate line, labelled “Share-based payment expense (IFRS 2)”, in recurring operating income.
Performance shares have been granted to certain Group employees and senior executives. Under the corresponding plans, definitive vesting of the shares is conditional on beneficiaries being employed by the Group at the end of the vesting period and on performance conditions being met.
| non-inclus | 31/12/2023 | 31/12/2022 |
|---|---|---|
| Number of shares granted subject to performance conditions at beginning of period | 7,178,209 | 7,173,432 |
| Shares granted subject to performance conditions | 2,590,167 | 2,489,710 |
| Shares vested | (1,952,520) | (1,826,223) |
| Shares cancelled | (445,469) | (658,710) |
| Number of shares granted subject to performance conditions not vested at end of period | 7,370,387 | 7,178,209 |
