Provisions for retirement and similar benefit obligations relate solely to beneficiaries who have retired. Provisions for retirement and similar benefit obligations are not recognised for active beneficiaries, but are recorded in off-balance sheet commitments.
Retirement benefit obligations are calculated on the basis of the following actuarial assumptions:
| 31/12/2023 | 31/12/2022 | |
|---|---|---|
| Discount rate | Discount rate 31/12/20233.20% |
Discount rate 31/12/20223.25% |
| Inflation rate | Inflation rate 31/12/20232.0% |
Inflation rate 31/12/20222.0% |
| Rate of pension increases | Rate of pension increases 31/12/20232.0% |
Rate of pension increases 31/12/20222.0% |
| Rate of salary increases | Rate of salary increases 31/12/20233.0% |
Rate of salary increases 31/12/20223.0% |
Other provisions relate in particular to:
Accounting policies and methods
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 received 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) | 2023 | 2022 |
|---|---|---|
| Bonds | Bonds 2023(7,763) |
Bonds 2022(6,871) |
| Borrowings from financial institutions | Borrowings from financial institutions 2023(33) |
Borrowings from financial institutions 2022(28) |
| Accrued interest on bonds | Accrued interest on bonds 2023(64) |
Accrued interest on bonds 2022(51) |
| Long-term financial debt | Long-term financial debt 2023(7,859) | Long-term financial debt 2022(6,950) |
| Other borrowings and financial debt | Other borrowings and financial debt 2023(460) |
Other borrowings and financial debt 2022(1,932) |
| Cash management current accounts of related companies | Cash management current accounts of related companies 2023(5,563) |
Cash management current accounts of related companies 2022(4,495) |
| Short-term financial debt | Short-term financial debt2023(6,023) | Short-term financial debt2022(6,427) |
| Total financial debt | Total financial debt2023(13,883) | Total financial debt2022(13,377) |
| Receivables connected to investments in subsidiaries and affiliates and loans | Receivables connected to investments in subsidiaries and affiliates and loans202310,813 | Receivables connected to investments in subsidiaries and affiliates and loans202213,470 |
| Marketable securities | Marketable securities 20231,860 |
Marketable securities 20221,279 |
| Cash management current accounts of related companies | Cash management current accounts of related companies 2023637 |
Cash management current accounts of related companies 2022463 |
| Cash | Cash 20234,575 |
Cash 20223,268 |
| Short-term cash | Short-term cash20237,072 | Short-term cash20225,010 |
| Net financial surplus/(debt) | Net financial surplus/(debt)20234,003 | Net financial surplus/(debt)20225,102 |
VINCI’s net financial surplus decreased by €1,099 million in 2023, from €5,102 million at 31 December 2022 to €4,003 million at 31 December 2023.
The change in long-term financial debt resulted from financing arranged in 2023 (see section A, “Key events in the period”, page 389).
VINCI’s borrowings mainly consist of bond issues denominated in euros (€5,870 million), US dollars ($1,070 million) and sterling (£800 million). Those bonds pay coupons at rates of between 0% and 4.26%, and they are due to mature between February 2025 and March 2039.
Euro-denominated bond issues include €500 million of zero-coupon green bonds issued in 2020 and due to mature in 2028. That bond issue enabled the Group to diversify its funding sources by accessing a new set of bond investors focused on ESG criteria.
