2025 Universal Registration Document

This risk of impairment losses also relates to infrastructure operated by concession companies over which the Group has joint control or significant influence. Interests in those concession companies amounted to €1,150 million at 31 December 2025.

Impairment tests are carried out on these assets whenever there is an indication that they may be impaired, by comparing their carrying amount to their recoverable amount. The recoverable amount is based on a value in use calculation, which is itself based on discounted future cash flow forecasts, taking the macroeconomic outlook into account.

Determining the recoverable amount of these assets and any impairment losses to be recognised is a key audit matter, given the importance of estimates and the level of judgement required on the part of the Group’s Management for assumptions relating to future operational performance and traffic levels, the long-term growth rates and discount rates used, and the sensitivity of their measurement to changes in certain of these assumptions.

Audit work performed

For cash-generating units and intangible assets that are material, as well as investments in concession companies accounted for under the equity method that are material or present what we regard as a substantial specific risk of impairment losses, we:

• evaluated the relevance of the approach used to determine the cash-generating units on which the asset impairment tests were carried out;
• familiarised ourselves with the way in which those impairment tests were carried out;
• assessed the main assumptions, particularly regarding changes in operational performance and traffic levels as well as the long-termgrowth rates and discount rates used, including by examining those rates with the assistance of valuation experts on our teams andcomparing them with our databases.

As regards goodwill, we examined the appropriateness of information provided in the notes to the consolidated financial statements on the determination of assumptions and sensitivity analyses.

Recognition of long-term construction and service contracts

Notes A.2.3, G.16 and H.19.3 to the consolidated financial statements

Description of the risk

Most of the revenue generated by VINCI’s Construction and Energy Solutions businesses comes from long-term construction and service contracts.

Revenue and results from construction and service contracts are recognised using the stage-of-completion method: the stage of completion and the revenue to be recognised are determined on the basis of a large number of completion estimates made by monitoring the work performed and taking into account unforeseen circumstances. In particular, these estimates cover any rights to additional revenue or claims if they are highly probable and can be reliably estimated. Adjustments may therefore be made to initial estimates throughout the life of the contracts and may materially affect results.

If the estimate of the final outcome of a contract indicates a loss, a provision is made for losses on completion regardless of the stage of completion, based on the best estimates of income.

Given the high level of judgement required on the part of the Group’s Management and the operational departments of the relevant subsidiaries to determine these completion estimates and the financial impact of any adjustments to them, we took the view that the recognition of long-term construction and service contracts was a key audit matter.

Audit work performed

Initially, our audit work involved a review of the procedures and information systems set up by the Group to recognise revenue from construction and service contracts as well as an assessment of the design and implementation of any associated key controls adopted.

Subsequently, for a group of contracts selected on the basis of their value, technical complexity or geographical location, among other procedures, we:

• compared the estimated revenue on completion with the information provided in the contracts and supplementary agreements signed, and assessed the highly probable nature and the estimates made of any rights to additional revenue or claims;
• conducted interviews with the projects’ operational or financial managers in order to gain an understanding of the judgements theymade when determining revenue on completion;
• assessed how risks of delays and cost overruns related to the performance of works were taken into account, evaluated the estimates of completion costs, and reviewed the contingencies included in the budget and the extent to which disputes were covered;
• checked that, if a project was expected to be loss-making on completion, a provision was set aside for the loss.

We also analysed the portfolio of low value or low risk contracts by examining any unusual changes or contributions.

Provisions for litigation and for other liabilities

Notes H.19.3, H.20 and M to the consolidated financial statements

Description of the risk

The Group’s companies are sometimes involved in litigation arising from their activities. The related risks are assessed by VINCI and the subsidiaries involved and provisions are taken in consequence as appropriate.