VINCI had €460 million of commercial paper outstanding at 31 December 2023, as opposed to €1,932 million at 31 December 2022.
Financial debt and receivables connected to investments in subsidiaries and affiliates include any related currency translation differences.
The cash management current accounts of related companies, shown under assets and liabilities, represent movements of cash between the holding company and subsidiaries that borrow or lend cash as part of the Group’s centralised cash management system.
Marketable securities mainly comprise certificates of deposit and money market UCITS with maturities of usually less than three months, whose carrying amount is close to their net asset value.
Accounting policies and methods
Forward financial instruments and derivative financial instruments are measured at the period end. A provision is recognised in the income statement for any unrealised losses where the instruments are not designated as hedges (isolated open position). Changes in value are taken to the balance sheet with a balancing entry in suspense accounts.
VINCI SA uses derivatives to hedge its exposure to market risks in respect of its financial debt and to cover its subsidiaries’ hedging needs.
At 31 December 2023, the market value of these financial instruments broke down as follows:
| (in € millions) | Market value | Notional |
|---|---|---|
| Interest rate instruments | ||
| – Interest rate swaps |
– Interest rate swaps Market value(535) |
– Interest rate swaps Notional18,301 |
| – Cross currency swaps |
– Cross currency swaps Market value(2) |
– Cross currency swaps Notional290 |
| – Interest-rate options (caps, collars and floors) |
– Interest-rate options (caps, collars and floors) Market value(8) |
– Interest-rate options (caps, collars and floors) Notional1,450 |
| Currency instruments | ||
| – Forward purchases | ||
| – Forward sales |
– Forward sales Market value(0) |
– Forward sales Notional63 |
| – Cross currency swaps |
– Cross currency swaps Market value(36) |
– Cross currency swaps Notional1,333 |
| Other hedging instruments | ||
| – Inflation swaps |
– Inflation swaps Market value0 |
– Inflation swaps Notional367 |
In 2023, VINCI took out inflation swaps with external counterparties to hedge part of the volatility in inflation derivatives entered into by London Gatwick airport. At the same time, VINCI offset the risk of that transaction by entering into back-to-back inflation swaps with the company that owns London Gatwick airport.
Accounting policies and methods
Trade receivables are measured at their nominal value. An impairment allowance is recognised if there is a possibility of non-recovery of these receivables.
Receivables and payables denominated in foreign currency are measured at the closing rate. Any gains or losses arising on this translation are recorded in the balance sheet as translation differences. Provisions are taken in respect of any unrealised losses unless specific rules are laid down in the accounting regulations.
Receivables at 31 December 2023
| Gross | Of which | ||
|---|---|---|---|
| (in € millions) | Within 1 year | After 1 year | |
| Receivables connected with investments in subsidiaries and affiliates | 10,821 | 1,155 | 9,666 |
| Non-current assets | 10,821 | 1,155 | 9,666 |
| Trade receivables and related accounts | 516 | 516 | - |
| Other receivables | 239 | 239 | - |
| Cash management current accounts of related companies | 637 | 637 | - |
| Prepaid expenses | 67 | 67 | - |
| Current assets | 1,459 | 1,459 | - |
| Total | 12,280 | 2,614 | 9,666 |
