| 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 |
The following table shows the periods in which the Group expects the amounts recorded in equity at 31 December 2024 for the instruments designated as cash flow hedges to have an impact on profit or loss:
| 31/12/2024 | |||||
|---|---|---|---|---|---|
| (in € millions) | Amount recorded in equity of controlled companies |
Amount recycled in profit or loss | |||
| Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 ans | ||
| Total interest rate derivatives designated as cash flow hedges for accounting purposes | (36) | (20) | 2 | 0 | (19) |
| of which existing instruments | 12 | (15) | 7 | 15 | 5 |
| of which unwound instruments | (48) | (5) | (5) | (15) | (24) |
| Interest rate swaps | ||||||
|---|---|---|---|---|---|---|
| (in € millions) | Fair value | Notional | Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 years |
| 31/12/2024 | (1) | 213 | 138 | - | - | 75 |
| 31/12/2023 | (1) | 100 | 25 | - | - | 75 |
At 31 December 2024, 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 62% 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.
Asset-related exchange rate risk is analysed on a case-by-case basis, in particular by considering borrowing costs for the currency concerned and visibility into financial flows for the asset in question.
Detail of exchange rate derivatives related to net financial debt
Transactions in exchange rate derivatives carried out by the Group, intended in particular to hedge its financial transactions, break down as follows:
| (in € millions) | 31/12/2024 | |||||
|---|---|---|---|---|---|---|
| Balance sheet fair value | Notional | Within 1 year | Between 1 and 2 years | Between 2 and 5 years | After 5 years | |
| Forward foreign exchange transactions | 0 | 3 | 3 | - | - | - |
| Cash flow hedges(*) | 0 | 3 | 3 | - | - | - |
| Currency swaps (incl. cross currency swaps) | (72) | 1,215 | 193 | 146 | 635 | 241 |
| Forward foreign exchange transactions | (9) | 589 | 416 | 173 | - | - |
| Hedges of net foreign investments (*) | (81) | 1,804 | 608 | 319 | 635 | 241 |
| Currency swaps (incl. cross currency swaps) | 2 | 479 | 95 | 99 | 228 | 59 |
| Forward foreign exchange transactions | (1) | 147 | 142 | 5 | - | - |
| Exchange rate derivatives not designated as hedges for accounting purposes | 2 | 627 | 237 | 105 | 228 | 59 |
| Total exchange rate derivatives | (80) | 2,434 | 848 | 424 | 863 | 300 |
(*) Changes in the fair value of the hedging instrument are recognised under “Other comprehensive income” (OCI) for the effective portion and in the income statement for the period for the ineffective portion.
