The “Derivatives designated as hedges: assets and liabilities” item breaks down as follows:
| (in € millions) | 2024 | 2023 |
|---|---|---|
| Net interest on derivatives designated as fair value hedges | Net interest on derivatives designated as fair value hedges 2024 (443) |
Net interest on derivatives designated as fair value hedges 2023 (361) |
| Change in value of interest rate derivatives designated as fair value hedges | Change in value of interest rate derivatives designated as fair value hedges 2024 275 |
Change in value of interest rate derivatives designated as fair value hedges 2023 767 |
| Change in value of the adjustment to fair value hedged financial debt | Change in value of the adjustment to fair value hedged financial debt 2024 (264) |
Change in value of the adjustment to fair value hedged financial debt 2023 (757) |
| Reserve recycled through profit or loss in respect of cash flow and net investment hedges | Reserve recycled through profit or loss in respect of cash flow and net investment hedges 2024 29 |
Reserve recycled through profit or loss in respect of cash flow and net investment hedges 2023 174 |
| Ineffective portion of cash flow and net investment hedges | Ineffective portion of cash flow and net investment hedges 2024 (9) |
Ineffective portion of cash flow and net investment hedges 2023 (4) |
| Gains and losses on derivative instruments allocated to net financial debt | Gains and losses on derivative instruments allocated to net financial debt 2024 (412) |
Gains and losses on derivative instruments allocated to net financial debt 2023 (181) |
Accounting policies
Other financial income and expense comprises mainly discounting effects, the impact of capitalised borrowing costs, foreign exchange gains and losses relating to financial items and changes in the value of equity instruments and derivatives not allocated to hedging interest rate or exchange rate risk, along with financial expense relating to lease liabilities under IFRS 16.
Capitalised borrowing costs relate to infrastructure under concession and are included during the construction period in the value of those assets. They are determined as follows:
This does not relate to the construction of concession assets accounted for using the financial asset model (see Note F.14, “PPP financial receivables”).
Other financial income and expense breaks down as follows:
| (in € millions) | 2024 | 2023 |
|---|---|---|
| Net effects of discounting | Net effects of discounting 2024 (109) |
Net effects of discounting 2023 (88) |
| Capitalised borrowing costs | Capitalised borrowing costs 2024 127 |
Capitalised borrowing costs 2023 118 |
| Financial expenses on lease liabilities | Financial expenses on lease liabilities 2024 (91) |
Financial expenses on lease liabilities 2023 (67) |
| Foreign exchange gains and losses, other changes in fair value and miscellaneous items | Foreign exchange gains and losses, other changes in fair value and miscellaneous items 2024 (144) |
Foreign exchange gains and losses, other changes in fair value and miscellaneous items 2023 (119) |
| Total other financial income and expense | Total other financial income and expense 2024 (217) |
Total other financial income and expense 2023 (157) |
In 2024, the net effects of discounting produced an expense of €109 million, compared with income of €88 million in 2023. The net effect arising from the discounting of provisions for the obligation to maintain the condition of concession intangible assets represented an expense of €51 million (expense of €48 million in 2023), including a €37 million expense at VINCI Autoroutes (expense of €30 million in 2023) and a €15 million expense at VINCI Airports (expense of €17 million in 2023). The net expense arising from the discounting of provisions for retirement benefit obligations increased by €9 million to €39 million. Effects arising from the discounting of provisions for fixed fees payable to concession grantors, in particular for Belgrade airport in Serbia, amounted to €8 million.
Capitalised borrowing costs amounted to €127 million in 2024 and mainly relate to Vía Sumapaz (formerly known as Vía 40 Express) in Colombia (impact of €63 million), VINCI Airports (impact of €31 million), including London Gatwick and Belgrade airports, and VINCI Autoroutes (impact of €16 million).
There was a foreign exchange gain of €10 million in 2024 (€38 million in 2023). Other changes include the €44 million decrease in the fair value of VINCI’s stake in Groupe ADP (decrease of €63 million in 2023) and the €94 million interest expense relating to the advances received from the offtaker in respect of the Carmópolis project in Brazil at Cobra IS (expense of €88 million in 2023).
