| (in € millions) | 31/12/2023 | |||||
|---|---|---|---|---|---|---|
| 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 | 5 | 23 | 23 | - | - | - |
| Cash flow hedges(*) | 5 | 23 | 23 | - | - | - |
| Currency swaps (incl. cross currency swaps) | (15) | 1,272 | 142 | 124 | 773 | 233 |
| Forward foreign exchange transactions | 1 | 96 | 96 | - | - | - |
| Hedges of net foreign investments(*) | (14) | 1,368 | 238 | 124 | 773 | 233 |
| Currency swaps (incl. cross currency swaps) | (12) | 481 | 76 | 93 | 309 | 3 |
| Forward foreign exchange transactions | (1) | 374 | 374 | - | - | - |
| Exchange rate derivatives not designated as hedges for accounting purposes | (13) | 855 | 450 | 93 | 309 | 3 |
| Total exchange rate derivatives | (21) | 2,246 | 711 | 217 | 1,082 | 236 |
(*) 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.
Detail of hedges qualifying for hedge accounting as part of a net foreign investment hedging relationship
The Group’s principal hedges of net foreign investments were as follows at 31 December 2024 :
| (in € millions) | 31/12/2024 | ||||
|---|---|---|---|---|---|
| Currency | GBP (pound sterling) | USD (US dollar) | MXN (Mexican peso) | SGD (Singapore dollar) | CAD (Canadian dollar) |
| Notional amount of derivatives designated as NIH | 1,102 | 449 | - | 102 | 63 |
| Nominal amount of debt designated as NIH | 965 | 544 | 406 | - | - |
NIH: Net investment hedge.
The Group hedges the net assets of its main subsidiaries in foreign currencies, particularly subsidiaries whose functional currency is the US dollar (USD), pound sterling (GBP), Mexican peso (MXN), Singapore dollar (SGD) or Canadian dollar (CAD).
Analysis of operational exchange rate risk
The principal foreign exchange exposures were as follows at 31 December 2024:
| (in € millions) | 31/12/2024 | |||
|---|---|---|---|---|
| Currency | CAD (Canadian dollar) | USD (US dollar) | GBP (pound sterling) | CZK (Czech koruna) |
| Closing rate (€/foreign currency) | 1.495 | 1.039 | 0.829 | 25 |
| Exposure | 268 | 186 | 99 | 25 |
| Hedging | (31) | (91) | (42) | - |
| Net position | 237 | 95 | 57 | 25 |
Given a residual exposure on some non-hedged assets, a 10% appreciation of the above-mentioned foreign currencies against the euro would have a positive impact on pre-tax earnings of €46 million.
Detail of exchange rate derivatives related to operational flows
Transactions in exchange rate derivatives carried out by the Group, intended in particular to hedge its operational flows, break down as follows at 31 December 2024:
| (in € millions) | |||||
|---|---|---|---|---|---|
| Currency | USD/BRL (*) | PLN(**)/EUR | CHF/EUR | GBP/EUR | USD/EUR |
| Fair value | 19 | 1 | - | (1) | (4) |
| Notional | 117 | 53 | 28 | 42 | 205 |
| Average maturity (months) | 3 | 15 | 16 | 9 | 11 |
| Buy/Sell | Buy | Sell | Buy/Sell | Buy/Sell | Buy/Sell |
(*) Brazilian real.
(**) Polish złoty.
VINCI is exposed to credit risk in the event of default by its customers and to counterparty risk in respect of its investments of cash (mainly credit balances at banks, negotiable debt securities, term deposits and marketable securities), subscription to derivatives, commitments received (sureties and guarantees received), unused authorised credit facilities, and financial receivables.
The Group has set up procedures to manage and limit credit risk and counterparty risk.
Trade receivables
Approximately one-third of consolidated revenue is generated with public sector or quasi-public sector customers. Moreover, VINCI considers that the concentration of credit risk connected with trade receivables is limited because of the large number of customers and the fact that they are geographically dispersed. No customer accounts for more than 10% of VINCI’s revenue. In export markets, the risk of non-payment is covered, as far as possible, by appropriate insurance policies (Coface, documentary credits and other insurance). Information is presented in Note H.19.2, “Breakdown of trade receivables”.
