VINCI

HALF-YEAR FINANCIAL REPORT

AT 30 JUNE 2023

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Management report for the first half of 2023

Confirming the positive trend seen in 2022, VINCI's overall performance in the first half of 2023 was of very high quality: in addition to further growth in revenue and earnings, it generated positive free cash flow despite the adverse impact of seasonal variations in its businesses at the start of the year.

In Concessions, VINCI Autoroutes traffic levels continued to rise due to firm momentum in light vehicle traffic, while heavy vehicle traffic fell slightly. At VINCI Airports, passenger numbers continued to rebound, and moved back to pre-pandemic levels outside of Asia. With the integration of OMA in Mexico and by keeping costs under control, it recorded a sharp rise in operating earnings.

VINCI Construction, whose new organisation has now been in place for two years, achieved firm business levels both in France and internationally, and improved its operating margin by being even more selective when taking on new projects.

The Energy business, which is being driven by powerful megatrends related to the energy transition, saw business levels rise sharply, with margins up for both VINCI Energies and Cobra IS.

Order intake was strong in the first half, taking the order book to a record level.

As regards external growth, the main transactions completed since the start of the year have concerned VINCI Energies – with a number of acquisitions in Europe and North America – and VINCI Highways, which bought a stake in a motorway concession in the state of São Paulo in Brazil and took control of the concession operator for the Bogotá-Girardot motorway in Colombia.

This very good start to the year once again demonstrated the strength of the Group's business model, which combines complementary businesses and cycles, along with the remarkable ability of its companies to build local roots and develop their businesses.

Xavier Huillard
Chairman and Chief Executive Officer, VINCI

Key figures

(in € millions)	First half 2023	First half 2022(1)	2023/2022 change	Full year 2022
Revenue (**)	32,365	28,517	+13.5%	61,675
Revenue generated in France (**)	14,379	13,466	+6.8%	27,948
% of revenue (**)	44.4%	47.2%		45.3%
Revenue generated outside France (**)	17,987	15,050	+19.5%	33,727
% of revenue (**)	55.6%	52.8%		54.7%
Operating income from ordinary activities	3,549	2,826	724	6,824
% of revenue (**)	11.0%	9.9%		11.1%
Recurring operating income	3,393	2,713	680	6,481
Operating income	3,410	2,767	643	6,489
Net income attributable to owners of the parent	2,089	1,855	234	4,259
% of revenue (**)	6.5%	6.5%		6.9%
Diluted earnings per share (in €)	3.65	3.26	0.39	7.47
Dividend per share (in €)	1.05 (***)	1.00	0.05	4.00
Cash flow from operations before tax and financing costs	5,309	4,526	783	10,215
Operating investments (net of disposals)	(822)	(546)	(276)	(2,456)
Operating cash flow	844	93	751	6,270
Growth investments (concessions and PPPs)	(583)	(374)	(209)	(836)
Free cash flow	261	(281)	542	5,433
Equity including non-controlling interests	30,849	26,128	4,721	29,409
Net financial debt	(20,910)	(22,127)	1,217	(18,536)

() The financial statements for the first half of 2022 have been adjusted for the effects of the final purchase price allocation for Cobra IS.
() Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
(**) Interim dividend to be paid on 16 November 2023.

VINCI - Interim financial report at 30 June 2023

Management report for the first half of 2023

VINCI's financial statements for the first half of 2023 show a sharp increase in revenue and earnings compared with the first half of 2022, along with positive free cash flow.

Consolidated revenue in the first half of 2023 rose by more than 13% to €32.4 billion (organic growth of 11.6%, a 2.6% positive impact from changes in the consolidation scope and a 0.6% negative impact from exchange rate movements). This trend confirms the good momentum in the Group's businesses, both in France and abroad.

Ebitda amounted to €5,309 million (16.4% of revenue), sharply higher than the first-half 2022 figure of €4,526 million (15.9% of revenue).

Operating income from ordinary activities (Ebit) grew strongly to €3,549 million (€2,826 million in the first half of 2022) and equalled 11.0% of revenue (9.9% in the first half of 2022).

Recurring operating income reached €3,393 million (€2,713 million in the first half of 2022), including the impact of share-based payments (IFRS 2), the contribution from companies accounted for under the equity method and other recurring operating items.

Consolidated net income attributable to owners of the parent hit a record €2,089 million and earnings per share¹ amounted to €3.65, up 12.6% and 12.0% respectively compared with the first half of 2022 (€1,855 million and €3.26 per share).

Operating cash flow (before taking account of growth investments in concessions) amounted to €844 million, a clear improvement on the first half of 2022 (€93 million).

After taking into account investments in concessions, free cash flow was an inflow of €261 million, as opposed to an outflow of €281 million in the first half of 2022. This excellent performance was due to growth in Ebitda and the Group's firm grip on the working capital requirement, which allowed it to offset the sharp rise in investments.

Net financial debt at 30 June 2023 was €20.9 billion, down €1.2 billion over 12 months and up €2.4 billion relative to end-2022. The increase relative to the end of 2022 reflects acquisitions made during the period, the payment of the final dividend in respect of 2022 and positive cash flow from transactions involving the share capital (capital increases as part of Group savings plans and share buy-backs).

As regards liquidity, at 30 June 2023, VINCI had net cash of €8.0 billion as well as confirmed credit facilities unused by VINCI SA totalling €10.5 billion, including an €8.0 billion facility due to expire in November 2025 for most of the amount, and another €2.5 billion facility due to expire in July 2023. Given the Group's large amount of available cash, the latter was not renewed.

Order intake in the Energy and Construction businesses totalled €31.2 billion in the first half of 2023, an 18% year-on-year increase.

Overall, the order book reached a record high of €61.5 billion at 30 June 2023, an increase of 7% relative to 31 December 2022 and 9% year on year. It represents more than 13 months of average business activity. International business made up 69% of the order book, as opposed to 68% at 30 June 2022.

1. Highlights of the period

1.1 Main changes in scope

VINCI Concessions

In April 2023, VINCI Highways, subsidiary of VINCI Concessions, acquired an additional stake in Via 40 Express, which holds concessions for sections of the Bogotá-Girardot motorway totalling 141 km until 2046, from its Colombian partner Constructora Conconcreto. By raising its stake from 50% to 75%, VINCI Highways now has a controlling interest in this company. The company was previously accounted for under the equity method but is now fully consolidated in the Group's financial statements.

In May 2023, VINCI Highways completed the acquisition of a 55% stake in Entrevías, which holds concessions for two toll motorway sections in Brazil until 2047, from Brazilian investment firm Pátria Investimentos. These two sections cover a total distance of 570 km in São Paulo state. The VINCI Group has joint control over Entrevías, which is therefore accounted for under the equity method in the Group's financial statements.

VINCI Energies

During the first half, VINCI Energies acquired 14 companies representing additional full-year revenue of around €280 million. They included Otera AS, which designs, builds and maintains electricity transmission and distribution networks, road infrastructure and tunnels in Norway; Avanceon LLC, based in Pennsylvania (United States), specialising in systems integration and industrial automation; Elecsco, a Quebec-based company specialising in electrical systems and instrumentation for infrastructure and industry; French railway signalling group SITS; and Methalac, which specialises in the design, construction, maintenance and monitoring of anaerobic digesters in France.

These transactions are mentioned in Note A.2 to the consolidated financial statements ("Changes in consolidation scope during the period").

¹ After taking account of dilutive instruments.

Interim financial report at 30 June 2023 - VINCI

Management report for the first half of 2023

1.2 Contract wins in the Energy and Construction businesses

Order intake in the Energy and Construction businesses totalled €31.2 billion in the first half of 2023, an 18% year-on-year increase. Order intake at VINCI Energies (€11.1 billion in the first half of 2023, up 21% compared with the first half of 2022) hit a new record on a rolling 12-month basis. Order intake at Cobra IS was €5.3 billion (up 64%), driven by large contracts for renewable energy production projects, including a contract worth over €2 billion, won in January 2023, to design, build and install two offshore windfarm energy converter platforms in the North Sea with total capacity of 4 GW. At VINCI Construction, order intake also rose, buoyed by solid flow business (up 6% to €14.9 billion).

Among the contracts won by the Group since the start of the year, the most significant have been those listed below.

VINCI Energies

Design-build contract, as part of a consortium with VINCI Construction, for two onshore power converter stations on a new electrical interconnection between France and Spain on behalf of Inelfe, a joint venture between the Spanish power grid operator (Red Eléctrica) and its French counterpart (RTE).
In Germany, a contract to lay optical fibre in Gera and Altenburger (Thuringia Land) on behalf of Deutsche Telekom.
Construction of a data center in Malaysia.

Cobra IS

Contract to design, build and install two offshore windfarm energy converter platforms in the North Sea for German operator Amprion Offshore, with total capacity of 4 GW.
Contract to design, build and install three offshore windfarm energy converter platforms in the North Sea for Dutch operator TenneT, with total capacity of 6 GW.²

VINCI Construction

The first design-build contract as part of the Grand Paris Express project, relating to a section of Line 15 West, won as part of a consortium including VINCI Energies in July 2023.²
Contract to build a 10 km road and 12 bridges as part of the northern bypass of the city of Prešov, Slovakia.²
Two major new road projects in New South Wales, Australia: a 5 km section of the M1 Pacific Motorway near the city of Heatherbrae and a 6.5 km section of the Mulgoa Road, a key access road in Greater Sydney.
Design-build-operate-maintain contract for the future police station in the city of Nice, France.
Civil engineering contract for a new wastewater treatment plant in Nice.²
Contract to build infrastructure for Meridian Water, an urban regeneration project in Enfield (Greater London).²

1.3 Financing activities

New financing

In January, ASF (Autoroutes du Sud de la France) issued €700 million of bonds due to mature in January 2033 with a coupon of 3.25%.

In April, VINCI Highways finalised long-term funding for concession company Via 40 Express in an amount of 2,675 Colombian pesos (€535 million). This was one of the largest funding transactions ever carried out in the Colombian infrastructure sector.

In May, VINCI SA carried out a €500 million private placement of bonds due to mature in February 2025 with a coupon of 3.375%.

Debt repayments

ASF repaid three bond issues with a total principal amount of €0.8 billion in the first-half period.

At 30 June 2023, the Group's gross long-term financial debt, before taking into account net cash, totalled €28.9 billion. The debt is mainly held by VINCI Autoroutes, VINCI Airports and VINCI SA. Its average maturity was 6.7 years at 30 June 2023 (6.9 years at 30 June 2022 and 31 December 2022) and its average cost was 3.0%³ (2.1% in the first half of 2022 and 2.5% in full-year 2022).

Credit ratings

VINCI SA: in March 2023, rating agency Standard & Poor's reiterated its confidence in the Group's credit quality by affirming its A- long-term and A2 short-term ratings, both with stable outlook. Ratings awarded to VINCI SA by Moody's (A3 long-term and P-2 short-term, with stable outlook) were also confirmed in July 2023.
ASF and Cofiroute: in June 2023, Standard & Poor's confirmed its A- long-term ratings with stable outlook for both companies.

VINCI – Interim financial report at 30 June 2023

² These contracts are not included in the Group's order book at 30 June 2023.
³ Average cost increased to 4.2% excluding the positive and non-recurring impact of 167 million euros related to the restructuring of the debt for the acquisition of London Gatwick airport.

Management report for the first half of 2023

1.4 Other highlights

Partnership to develop hydrogen mobility

In January 2023, VINCI Concessions completed an investment in Hype, France's first integrated hydrogen mobility platform and the operator of a hydrogen taxi fleet. Alongside this investment, VINCI Concessions and Hype have entered into a strategic partnership to accelerate the deployment of hydrogen mobility infrastructure in France and around the world.

As part of this partnership, Hype will task VINCI Energies with building new hydrogen production and distribution infrastructure in the Greater Paris area.

Decarbonising road transport

A consortium led by VINCI Autoroutes, with other partners including VINCI Construction, launched a new initiative to help decarbonise road transport. On the A10 motorway in France, two dynamic charging solutions, primarily for heavy electric vehicles – one using inductive charging and the other using conductive rail charging – will be trialled on two 2 km sections over a period of three years.

2. Revenue

Consolidated revenue in the first half of 2023 totalled €32.4 billion, up 13.5% on an actual basis and up 11.6% on a like-for-like basis relative to the first half of 2022. Changes in scope boosted revenue by 2.6%. Exchange rate movements had a negative impact of 0.6% on revenue, because the euro rose against several currencies including sterling.

Concessions revenue totalled €5.0 billion, up 20.1% on an actual basis (up 12.8% on a like-for-like basis).

Revenue in the Energy business (VINCI Energies and Cobra IS) amounted to €12.2 billion, up 16.9% compared with the first half of 2022 (up 13.4% on a like-for-like basis).

Revenue in the Construction business totalled €14.9 billion, up 10.9% on the first half of 2022 (up 11.7% on a like-for-like basis).

In France, revenue totalled €14.4 billion, up 6.8% on an actual basis (up 6.6% at constant scope) compared with the first half of 2022. Organic growth was 6.2% in Concessions, 12.6% in Energy and 6.8% in Construction.

Outside France, revenue was €18.0 billion, up 19.5% on an actual basis and up 16.0% on a like-for-like basis. Changes in scope mainly concern the integration of OMA – a concession company that operates 13 airports in Mexico, including Monterrey airport – in which VINCI Airports acquired a 29.99% stake in December 2022, along with recent acquisitions made by VINCI Energies, including Kontron AG's IT services business (acquired in late 2022) and Otera AS in Norway (acquired in early 2023). Exchange rate movements had a slightly negative impact on revenue, because the euro rose against several currencies including sterling. Organic growth was 31.2% in Concessions, 13.8% in Energy and 16.3% in Construction. International business accounted for almost 56% of total revenue, as opposed to 53% in the year-earlier period.

Revenue by business line

	First half 2023	First half 2022	2023/2022 change
(in € millions)			Actual	Like-for-like
Concessions	4,998	4,161	+20.1%	+12.8%
VINCI Autoroutes	2,971	2,816	+5.5%	+5.5%
VINCI Airports	1,781	1,126	+58.1%	+32.2%
Other concessions	246	219	+12.4%	+8.4%
VINCI Energies	9,122	7,755	+17.6%	+13.0%
Cobra IS	3,061	2,668	+14.8%	+14.4%
VINCI Construction	14,914	13,454	+10.9%	+11.7%
VINCI Immobilier	560	726	-22.9%	-23.1%
Intercompany eliminations	(290)	(247)
Revenue(*)	32,365	28,517	+13.5%	+11.6%
Concession subsidiaries' works revenue	405	281	+44.1%	+3.8%
Intercompany eliminations	(36)	(19)
Concession subsidiaries' revenue derived from works carried out by non-Group companies	369	263	+40.7%	-2.4%
Total consolidated revenue	32,735	28,779	+13.7%	+11.6%

(*) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.

Interim financial report at 30 June 2023 - VINCI

Management report for the first half of 2023

CONCESSIONS: €4,998 million (up 20.1% actual and up 12.8% like-for-like compared with the first half of 2022)

VINCI Autoroutes: revenue equalled €2,971 million, up 5.5% on the first half of 2022. Intercity traffic levels were up 2.2%. Light vehicle traffic was up 2.8% during the first half, while heavy vehicle traffic was down 1.2%. Differing calendar effects – positive for light vehicle traffic, as a result of several additional long weekends, and negative for heavy vehicle traffic because there was one fewer business day in the first half of 2023 than in the year-earlier period – are reflected in these results, but the underlying trends remain favourable overall.

VINCI Airports: revenue totalled €1,781 million (€1,126 million in the first half of 2022). Compared with the first half of 2019 – the pre-pandemic baseline year – revenue was up 8% at constant scope. The upturn in VINCI Airports passenger numbers continued in 2023, underpinned by strong demand, an increase in supply in terms of seats offered by airlines, and the opening of new routes. Several airports operated by VINCI Airports – those in Portugal, Mexico and the Dominican Republic as well as Belgrade airport in Serbia – even achieved record passenger numbers, beating their 2019 levels.

Overall, the network's airports handled 123 million passengers in the first half of 2023, 36% more than in the first half of 2022. This equalled 91% of the figure seen in the first half of 2019 across all airports in the network, despite the slower recovery in Asia (96% for fully consolidated subsidiaries).

Other concessions: revenue totalled €246 million, up 12% on the first half of 2022 and up 8% like-for-like. The main revenue contributors were Lima Express (which holds the concession for a section of the Lima ring road in Peru), Gefyra (which holds the concession for the bridge between Rion and Antirion in Greece), VINCI Stadium, and MESEA (the company in charge of maintaining and operating the South Europe Atlantic high-speed rail line between Tours and Bordeaux).

VINCI Energies: €9,122 million (up 17.6% actual and up 13.0% like-for-like compared with the first half of 2022)

The business line's strong momentum reflects the excellent positions of its companies in buoyant markets, contributing to the energy and digital transitions, both in France and internationally, along with their broad array of skills and their effective combination of global reach and local presence. All four of VINCI Energies' business areas (infrastructure, industry, building solutions and ICT⁴) achieved double-digit growth. Recent acquisitions⁵ also boosted revenue by around €380 million in the first half.

In France (44% of the total), revenue was €3,990 million, up 13.2% on an actual basis and up 12.6% on a like-for-like basis relative to the first half of 2022. There was firm growth in all business areas and particularly in building solutions (tertiary sector, facilities management).

Outside France (56% of the total), revenue was €5,131 million, up 21.3% on an actual basis and up 13.4% on a like-for-like basis relative to the first half of 2022. Business growth remained very strong in most regions and countries in which VINCI Energies has operations, particularly in Germany, the Benelux countries, North America, Morocco, Singapore and New Zealand.

Cobra IS: €3,061 million (up 14.8% actual and up 14.4% like-for-like compared with the first half of 2022)

Revenue is being driven by the ramp-up of large EPC (engineering, procurement and construction) projects mostly related to the energy transition. Cobra IS has also seen good momentum in its flow business, in both Europe and Latin America. In Spain (47% of the total), revenue rose by 17% to €1.4 billion. Outside Spain (53% of the total, of which 32% in Latin America), revenue totalled €1.6 billion, up 12.7% on an actual basis and up 12.1% on a like-for-like basis.

VINCI Construction: €14,914 million (up 10.9% actual and up 11.7% like-for-like compared with the first half of 2022)

In France (46% of the total), revenue was €6,824 million, up 6.8% on both an actual and like-for-like basis relative to the first half of 2022. Business levels remained firm in the infrastructure segment. In the building segment, business was driven by rehabilitation projects in the residential sector and by the construction of public buildings, particularly in the hospital sector.

Outside France (54% of the total), revenue reached €8,090 million, up 14.5% on an actual basis and up 16.3% on a like-for-like basis relative to the first half of 2022. This reflects progress with several large civil engineering contracts in Europe, North America, Australia and New Zealand, along with solid business levels in Speciality Networks and Proximity Networks.

VINCI Immobilier: €560 million (down 23% actual and like-for-like compared with the first half of 2022)

Revenue, including the Group's share of joint developments, fell 20% year on year to €654 million in the first half of 2023. In addition to a high base for comparison, VINCI Immobilier suffered from challenging conditions in the real estate sector in France against a backdrop of high interest rates.

In France, 1,772 housing units were reserved, down 36% compared with the first half of 2022. Work began on 1,365 homes, a decrease of 32% relative to the first half of 2022, and there were 1,673 completed residential sales, also down 32%.

VINCI – Interim financial report at 30 June 2023

Management report for the first half of 2023

Revenue by geographical area

(in € millions)	First half 2023	% of total	First half 2022	Actual	At constant exchange rates
France	14,379	44.4%	13,466	+6.8%	+6.8%
United Kingdom	2,878	8.9%	2,409	+19.5%	+24.5%
Germany	2,057	6.4%	1,718	+19.7%	+19.7%
Spain	1,733	5.4%	1,473	+17.7%	+17.7%
Central and Eastern Europe	1,247	3.9%	1,034	+20.6%	+18.4%
Other European countries	2,940	9.1%	2,411	+21.9%	+22.5%
Europe excl. France	10,856	33.5%	9,046	+20.0%	+21.2%
North America	2,328	7.2%	2,026	+14.9%	+15.9%
Of which United States	1,436	4.4%	1,284	+11.9%	+10.2%
Of which Canada	892	2.8%	742	+20.2%	+26.4%
Central and South America	2,006	6.2%	1,602	+25.2%	+24.6%
Africa	832	2.6%	763	+9.1%	+13.5%
Asia-Pacific and Middle East	1,965	6.1%	1,614	+21.7%	+25.5%
International excluding Europe	7,131	22.0%	6,005	+18.8%	+20.5%
Total international	17,987	55.6%	15,050	+19.5%	+20.9%
Revenue(7)	32,365	100.0%	28,517	+13.5%	+14.2%

(*) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.

3. Results

3.1 Operating income from ordinary activities / operating income

Operating income from ordinary activities (Ebit) was €3,549 million, almost 26% higher than in the first half of 2022 (€2,826 million), and equal to 11.0% of revenue (9.9% in the first half of 2022).

Operating income from ordinary activities / operating income

(in € millions)	First half 2023	% of revenue(1)	First half 2022	% of revenue(1)	2023/2022 change
Concessions	2,447	49.0%	1,899	45.6%	547
VINCI Autoroutes	1,640	55.2%	1,482	52.6%	158
VINCI Airports	780	43.8%	380	33.8%	400
Other concessions	26	-	37	-	(11)
VINCI Energies	623	6.8%	507	6.5%	116
Cobra IS	230	7.5%	190	7.1%	40
VINCI Construction	299	2.0%	254	1.9%	46
VINCI Immobilier	(16)	(2.8%)	28	3.8%	(43)
Holding companies	(34)	-	(52)	-	18
Operating income from ordinary activities (Ebit)	3,549	11.0%	2,826	9.9%	724
Share-based payments (IFRS 2)	(260)	-	(138)	-	(122)
Profit/(loss) of companies accounted for under the equity method	63	-	34	-	29
Other recurring operating items	41	-	(9)	-	50
Recurring operating income	3,393	10.5%	2,713	9.5%	680
Non-recurring operating items	17	-	54	-	(37)
Operating income	3,410	10.5%	2,767	9.7%	643

NB: Operating income from ordinary activities is defined as operating income before the effects of share-based payments (IFRS 2), the profit or loss of companies accounted for under the equity method and other recurring and non-recurring operating items.
(*) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
Reminder: The financial statements for the first half of 2022 have been adjusted for the effects of the final purchase price allocation for Cobra IS.

The contribution of the Concessions business was €2,447 million (49.0% of revenue), up almost 29% compared with the first-half 2022 figure of €1,899 million (45.6% of revenue).

At VINCI Autoroutes, Ebit totalled €1,640 million, equal to 55.2% of revenue. It was almost 11% higher than in the first half of 2022 (€1,482 million, 52.6% of revenue).

Interim financial report at 30 June 2023 - VINCI

Management report for the first half of 2023

At VINCI Airports, Ebit was €780 million. This represents an increase of 105% or €400 million compared with the first half of 2022 (€380 million). The change reflects higher revenue, firm control of operational costs and the integration of OMA in Mexico. Ebit margin was 43.8% in the first half of 2023 as opposed to 33.8% in the first half of 2022.

At VINCI Energies, Ebit was €623 million and Ebit margin rose to 6.8%, 30 bps more than in the first half of 2022 (€507 million and 6.5%). All business activities and regions contributed to this very solid performance.

At Cobra IS, Ebit was €230 million in the first half of 2023 and Ebit margin was 7.5% (€190 million and 7.1% respectively in the first half of 2022), as a result of business growth.

VINCI Construction posted Ebit of €299 million (€254 million in the first half of 2022), equal to 2.0% of revenue (1.9% in the first half of 2022). As certain activities and regions experience considerable seasonal variations that affect coverage of overheads, Ebit margin from the first half of the year is not representative of expected full-year performance in this business line.

VINCI Immobilier made a loss of €16 million at the Ebit level and Ebit margin was negative 2.8%, as opposed to positive Ebit of €28 million (3.8% of revenue) in the first half of 2022.

The Ebit of holding companies included the amortisation of intangible assets recognised when allocating the Cobra IS purchase price in an amount of €64 million in the first-half periods of 2022 and 2023.

Recurring operating income totalled €3,393 million (€2,713 million in the first half of 2022). This factors in:

the share-based payment expense, which reflects the benefits granted to employees under the Group savings plans and performance share plans, amounting to €260 million (€138 million in the first half of 2022), with the change resulting mainly from new assumptions used to measure the expense relating to savings plans in France;
the €63 million contribution from equity-accounted companies (€34 million in the first half of 2022);
other recurring operating items producing net income of €41 million (compared with a €9 million net expense in the first half of 2022).

Recurring operating income by business line

(in € millions)	First half 2023	% of revenue(*)	First half 2022	% of revenue(*)	2023/2022 change
Concessions	2,502	50.1%	1,877	45.1%	625
VINCI Autoroutes	1,631	54.9%	1,475	52.4%	156
VINCI Airports	811	45.5%	363	32.2%	448
Other concessions	60	-	39	-	22
VINCI Energies	558	6.1%	455	5.9%	103
Cobra IS	234	7.6%	195	7.3%	38
VINCI Construction	229	1.5%	207	1.5%	21
VINCI Immobilier	(1)	(0.2%)	37	5.1%	(38)
Holding companies	(128)	-	(58)	-	(70)
Recurring operating income	3,393	10.5%	2,713	9.5%	680

(*) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.

Non-recurring operating items had a positive impact of €17 million in the first half of 2023, mainly due to the impact of VINCI Highways taking control of Via 40 Express in Colombia (see "Highlights of the period" above).

After taking account of both recurring and non-recurring items, operating income was €3,410 million in the first half of 2023, up 23% relative to the first-half 2022 figure of €2,767 million.

3.2 Net income

Consolidated net income attributable to owners of the parent amounted to €2,089 million, equal to 6.5% of revenue, in the first half of 2023. This represents a 12.6% increase relative to the first half of 2022 (€1,855 million adjusted for the amortisation of Cobra IS intangible assets following the allocation of the purchase price, equal to 6.5% of revenue).

Earnings per share, after taking account of dilutive instruments, amounted to €3.65, up 12.0% compared with the first half of 2022 (€3.26).

The cost of net financial debt was €340 million (€265 million in the first half of 2022). The higher return on cash investments and the positive impact of a transaction to unwind interest rate swaps related to the London Gatwick airport acquisition debt partly offset the effect of sharply higher interest rates on the Group's floating rate debt and the impact of the financing of acquisitions outside France, particularly in the Concessions

VINCI - Interim financial report at 30 June 2023

Management report for the first half of 2023

business.

In the first half of 2023, the average interest rate on long-term gross financial debt was 3.0% (2.1% in the first half of 2022 and 2.5% in full-year 2022).

Other financial income and expense resulted in a net expense of €16 million compared with an income of €124 million in the first half of 2022, and included:

an expense of €38 million related to the cost of discounting provisions for the obligation to maintain the condition of concession intangible assets and retirement benefit obligations (income of €43 million in the first half of 2022, following the sharp rise in projected interest rates);
a €38 million gain relating to capitalised borrowing costs on current concession investments (€11 million in the first half of 2022);
IFRS 16 lease expenses amounting to €30 million (€23 million in the first half of 2022);
an interest expense of €38 million on long-term advances received (nil in 2022);
a €53 million positive impact from the change in fair value of equity instruments, mainly regarding the stake in Groupe ADP (€59 million in the first half of 2022).

The Group's tax expense was €816 million, corresponding to an effective tax rate of 27.3%, as opposed to €741 million and 28.6% respectively in the first half of 2022. The increase reflects the Group's higher pre-tax income.

Income attributable to non-controlling interests totalled €148 million (€30 million in the first half of 2022), mainly relating to London Gatwick airport and Mexican airport operator OMA.

4. Cash flow

(in € millions)	First half 2023	First half 2022	2023/2022 change
Cash flow from operations before tax and financing costs (Ebitda)	5,309	4,526	783
% of revenue	16.4%	15.9%
Changes in WCR and current provisions	(1,952)	(2,581)	629
Income taxes paid	(1,202)	(771)	(431)
Net interest paid	(313)	(273)	(40)
Dividends received from companies accounted for under the equity method	66	48	18
Cash flows from operating activities, excluding other long-term advances	1,907	949	958
Operating investments net of disposals and other long-term advances	(747)	(546)	(201)
Repayments of lease liabilities and financial expense on leases	(316)	(310)	(6)
Operating cash flow	844	93	751
Growth investments in concessions	(583)	(374)	(209)
of which VINCI Autoroutes	(288)	(288)	-
of which VINCI Airports	(187)	(65)	(122)
of which other	(108)	(21)	(87)
Free cash flow	261	(281)	542
of which Concessions	1,649	1,651	(2)
of which VINCI Energies; Cobra IS and VINCI Construction	(1,416)	(1,867)	451
of which VINCI Immobilier and holding companies	29	(64)	93
Net financial investments	(676)	(750)	74
Other	25	2	23
Free cash flow after growth financing	(389)	(1,029)	639
Capital increases and reductions	573	378	195
Transactions in treasury shares	(251)	(905)	654
Dividends paid	(1,839)	(1,298)	(541)
Subtotal capital transactions	(1,517)	(1,824)	308
Net flows for the period	(1,906)	(2,853)	947
Other changes	(468)	264	(732)
Change in net financial debt	(2,374)	(2,589)	215
Net financial debt	(20,910)	(22,127)	1,217

Interim financial report at 30 June 2023 - VINCI

Management report for the first half of 2023

Ebitda amounted to €5,309 million in the first half of 2023 (€4,526 million in the first half of 2022), equal to 16.4% of revenue compared with 15.9% in the first half of 2022.

In Concessions, Ebitda amounted to €3,472 million, up 22% relative to the first half of 2022 (€2,842 million). It equalled 69.5% of revenue compared with 68.3% in the year-earlier period.

Ebitda at VINCI Autoroutes rose by 7.9% to €2,280 million (€2,114 million in the first half of 2022), equal to 76.7% of revenue (75.1% in the first half of 2022).

At VINCI Airports, Ebitda was €1,083 million, up 71% relative to the first half of 2022 (€632 million). Ebitda margin rose to 60.8% in the first half of 2023 as opposed to 56.1% in the first half of 2022, and includes the integration of Mexican airport operator OMA.

VINCI Energies' Ebitda was €726 million (8.0% of revenue), up almost 18% compared with the first-half 2022 figure of €618 million (8.0% of revenue).

Ebitda at Cobra IS was €297 million (9.7% of revenue), up almost 27% compared with the first-half 2022 figure of €234 million (8.8% of revenue).

Ebitda at VINCI Construction was €602 million or 4.0% of revenue (€578 million and 4.3% of revenue in the first half of 2022).

Ebitda by business line

(in € millions)	First half 2023	% of revenue (1)	First half 2022	% of revenue (1)	2023/2022 change
Concessions	3,472	69.5%	2,842	68.3%	630
VINCI Autoroutes	2,280	76.7%	2,114	75.1%	166
VINCI Airports	1,083	60.8%	632	56.1%	451
Other concessions	109	-	96	-	13
VINCI Energies	726	8.0%	618	8.0%	109
Cobra IS	297	9.7%	234	8.8%	63
VINCI Construction	602	4.0%	578	4.3%	23
VINCI Immobilier	-	-0.1%	42	5.8%	(43)
Holding companies	212	-	212	-	1
Ebitda	5,309	16.4%	4,526	15.9%	783

(*) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.

The change in the operating working capital requirement and current provisions – which usually have a negative impact on the cash position in the first half of the year due to seasonal variations in business levels in the Energy and Construction businesses – consumed €1,952 million of cash in the first half of 2023, much less than in the first half of 2022 (€2,581 million).

Income taxes paid rose by €431 million to €1,202 million (€771 million in the first half of 2022).

Net interest paid totalled €313 million in the first half of 2023, up €40 million on the first half of 2022 (€273 million).

Dividends paid by companies accounted for under the equity method amounted to €66 million in the first half of 2023 (€48 million in the first half of 2022).

Cash flows from operating activities⁷ rose sharply to €1,907 million, up €958 million relative to the first-half 2022 figure of €949 million.

Operating investments, net of disposals and the change in long-term advances, amounted to €747 million, up almost 37% compared with the first half of 2022 (€546 million); they included €125 million of investments at Cobra IS, in renewable energy projects, and €415 million invested by VINCI Construction (€313 million in the first half of 2022).

After repayments of lease liabilities for €316 million (€310 million in the first half of 2022), operating cash flow⁷ was €844 million (€93 million in the first half of 2022).

Growth investments in concessions and public-private partnerships totalled €583 million (€374 million in the first half of 2022). The figure includes €288 million invested by VINCI Autoroutes (stable year on year) and €187 million by VINCI Airports (€65 million in the first half of 2022), mainly in Mexico, Portugal and at Belgrade airport in Serbia.

7 See glossary.

VINCI – Interim financial report at 30 June 2023

Management report for the first half of 2023

Free cash flow⁷ was an inflow of €261 million, compared with an outflow of €281 million in the first half of 2022. This figure breaks down into:

a net inflow of €1,649 million in Concessions (€1,651 million in the first half of 2022), of which €1,224 at VINCI Autoroutes and €357 million at VINCI Airports;
a net outflow of €27 million at VINCI Energies (€247 million outflow in the first half 2022);
a net outflow of €193 million at Cobra IS (€265 million outflow in the first half of 2022);
a net outflow of €1,196 million at VINCI Construction (€1,355 million outflow in the first half 2022).

It should be borne in mind that most of the Group's free cash flow is generated in the second half of the year.

Financial investments, net of disposals, totalled around €676 million, mainly relating to acquisitions made by VINCI Energies and, at VINCI Highways, the deal to take control of Vía 40 Express in Colombia and the acquisition of a 55% stake in Entrevías in Brazil. In the first half of 2022, they represented an outflow of €750 million.

Transactions involving VINCI's capital generated a cash inflow of €322 million as opposed to an outflow of €527 million in the first half of 2022. They included €250 million of VINCI shares purchased in the market (2.4 million shares purchased at an average price of €104.22 per share) as part of the share buy-back programme, and €570 million of capital increases at VINCI SA in relation to Group savings plans (7.0 million shares created).

Dividends paid by the Group in the first half of 2022 amounted to €1,839 million (€1,298 million in the first half of 2022), including €1,693 million paid by VINCI in respect of the 2022 final dividend (€3.00 per share).

As a result of these cash flows, net financial debt increased by €2.4 billion in the first half of the year, taking the total to €20.9 billion at 30 June 2023.

5. Balance sheet and net financial debt

Consolidated non-current assets at 30 June 2023 was €67.2 billion (€61.5 billion at 30 June 2022; €65.5 billion at 31 December 2022), including €44.1 billion in the Concessions business (€40.6 billion at 30 June 2022 and €42.9 billion at 31 December 2022), €8.3 billion at VINCI Energies (€8.2 billion at 31 December 2022), €7.1 billion at Cobra IS (€6.9 million at 31 December 2022) and €6.5 billion at VINCI Construction (€6.5 billion at 31 December 2022). The increase in the first half of 2023 mainly related to VINCI Concessions and VINCI Energies.

After taking account of a net working capital surplus, attributable mainly to VINCI Energies, Cobra IS and VINCI Construction, of almost €11.0 billion – down €2.1 billion relative to the 31 December 2022 figure of €13.1 billion and up more than €2.3 billion compared with the 30 June 2022 figure of €8.6 billion – capital employed was €56.3 billion at 30 June 2023 (€52.8 billion at 30 June 2022 and €52.5 billion at 31 December 2022).

Capital employed in the Concessions business amounted to €41.9 billion, accounting for 74% of the total (74% at 30 June 2022 and 77% at 31 December 2022).

Equity totalled €30.8 billion at 30 June 2023, up €4.7 billion on 30 June 2022 (€26.1 billion) and up €1.4 billion on 31 December 2022 (€29.4 billion). It includes €3.8 billion relating to non-controlling interests (€1.9 billion at 30 June 2022 and €3.5 billion at 31 December 2022), mainly concerning London Gatwick airport and Mexican airport operator OMA.

The number of shares was 596,431,645 at 30 June 2023 (589,387,330 at 31 December 2022). Treasury shares amounted to 4.4% of the total capital at 30 June 2023 (4.4% at 31 December 2022).

Net financial debt was €20.9 billion at 30 June 2023, down €1.2 billion over 12 months (€22.1 billion at 30 June 2022) and up €2.4 billion relative to 31 December 2022 (€18.5 billion). That figure reflects long-term gross financial debt of €28.9 billion (€27.8 billion at 31 December 2022) and managed net cash of €8.0 billion (€9.2 billion at 31 December 2022).

For the Concessions business, including its holding companies, net financial debt stood at €30.0 billion, down almost €1.8 billion relative to 31 December 2022 (€31.7 billion), after VINCI SA subscribed to a €1.6 billion capital increase by VINCI Concessions. VINCI Energies, Cobra IS and VINCI Construction showed a net financial surplus of €1.7 billion as opposed to €1.4 billion at 30 June 2022 and €3.7 billion at 31 December 2022. Holding companies and other activities showed a net financial surplus of €7.4 billion (€9.5 billion at 31 December 2022). Of that surplus, €12.9 billion consisted of the net balance of loans granted to Group subsidiaries and investments made by the latter within the Group.

The ratio of net financial debt to equity was 0.7 at 30 June 2023 (0.6 at 31 December 2022). The ratio of net financial debt to Ebitda on a rolling 12-month basis was 1.9 at end-June 2023 (2.4 at end-June 2022 and 1.8 at 31 December 2022).

Group liquidity totalled €18.5 billion at 30 June 2023 (€14.0 billion at 30 June 2022 and €19.7 billion at 31 December 2022). It comprises €8.0 billion of managed net cash and €10.5 billion of confirmed credit facilities unused by VINCI SA, including an €8.0 billion facility due to expire in November 2025 for almost all of this amount (€7.7 billion) and a €2.5 billion facility due to expire in July 2023. Given the Group's large amount of available cash, the latter was not renewed.

Interim financial report at 30 June 2023 - VINCI

Management report for the first half of 2023

Net financial surplus (debt)

(in € millions)	30/06/2023	Of which external financial surplus (debt)	Net financial debt/Ebitda	30/06/2022	Of which external financial surplus (debt)	31/12/2022	Of which external financial surplus (debt)	30/06/2023 / 30/06/2022 change	30/06/2023 / 31/12/2022 change
Concessions	(29,967)	(19,436)	4.4x	(32,360)	(19,453)	(31,735)	(18,880)	2,393	1,768
VINCI Autoroutes	(16,374)	(12,381)	3.6x	(17,088)	(13,257)	(16,985)	(12,578)	714	611
VINCI Airports	(9,434)	(6,246)	4.6x	(11,251)	(5,488)	(11,132)	(5,674)	1,817	1,698
Other concessions	(4,159)	(809)		(4,021)	(709)	(3,618)	(628)	(138)	(541)
VINCI Energies	(461)	473	0.3x	(42)	404	(129)	532	(419)	(331)
Cobra IS	334	334		(125)	(125)	404	404	459	(69)
VINCI Construction	1,789	1,778		1,569	1,404	3,460	1,879	219	(1,672)
Holding companies and miscellaneous	7,395	(4,059)		8,831	(4,358)	9,464	(2,471)	(1,436)	(2,070)
Total	(20,910)	(20,910)	1.9x	(22,127)	(22,127)	(18,536)	(18,536)	1,217	(2,374)

6. Order book

At 30 June 2023, the order book of VINCI Energies, Cobra IS and VINCI Construction reached a record high of €61.5 billion, up 7% on 31 December 2022 (up 7% in France and up 7% outside France). It represents 13.5 months of average business activity in these three business lines. International business made up 69% of the order book at end-June 2023.

VINCI Energies' order book stood at €14.7 billion at 30 June 2023, up almost 18% compared with 31 December 2022 (up 11% in France and up 23% outside France) and 16% higher over 12 months (up 7% in France and up 23% outside France). It represents almost 10 months of VINCI Energies' average business activity.

Cobra IS's order book totalled €13.3 billion at 30 June 2023, up 20% relative to 31 December 2022 (up 49% in Europe and down 14% outside Europe). It represents 27 months of Cobra IS's average business activity.

VINCI Construction's order book stood at €33.6 billion, stable over six months (up 6% in France and down 4% outside France) and down 2% over a 12-month period (up 5% in France and down 6% outside France). It represents 13 months of VINCI Construction's average business activity.

Order book (*)

(in € billions)	30/06/2023	of which France	of which outside France	30/06/2022	31/12/2022
VINCI Energies	14.7	6.2	8.5	12.7	12.4
Cobra IS	13.3	-	13.2	9.3	11.1
VINCI Construction	33.6	13.0	20.6	34.3	33.8
Total	61.5	19.2	42.4	56.2	57.3
VINCI Immobilier	0.8	0.8	-	1.1	1.2

(*) Unaudited figures.

7. Post-balance sheet events and outlook

7.1 Post-balance sheet events

Grand Paris Express

In July 2023, the Intencités15 consortium, including several subsidiaries of VINCI Construction and VINCI Energies, won the first design-build contract as part of the Grand Paris Express project, relating to a section of Line 15 West. It will be located in a very dense urban area, connecting the stations of Pont de Sèvres and La Défense to the west of Paris. The contract is worth more than €2.7 billion, of which around 72% relates to work to be done by Group companies, and includes turnkey engineering and construction of 14 km of tunnels and five stations.

Entry into service of the Belmonte solar farm in Brazil

The 570 MW Belmonte solar farm in the Nordeste region of Brazil developed by Cobra IS entered into service end of July.

Work on new projects involving photovoltaic facilities in Spain and Brazil, with combined capacity of around 1.4 GW, is likely to begin in the next few months.

VINCI - Interim financial report at 30 June 2023

Management report for the first half of 2023

VINCI Airports

In July, VINCI Airports and its Portuguese subsidiary ANA finalised the 40-year concession contract to operate all seven airports in Cabo Verde islands, which handled 2.8 million passengers in 2019.

Financing activities

In July, VINCI SA carried out a €100 million tap issue of bonds originally issued in October 2022 and due to mature in October 2032.

7.2 Outlook

Given the good performance delivered in the first half of 2023, VINCI is reaffirming the guidance provided in February, upon the publication of the Group's 2022 financial statements.

Barring exceptional events, the Group confirms that in 2023 it is expecting:

a further increase - although more limited than in 2022 - in revenue and operating income;
a net income slightly higher than the level achieved in 2022, despite a substantial increase in financial costs.
a free cash-flow – taking into account the increase in investments in both airports and renewable energy – at the upper end of the range of €4.0 billion to €4.5 billion previously indicated.

2023 forecasts for each business line are as follows:

Over the full year, VINCI Autoroutes expects traffic levels to be similar to those seen in 2022.
VINCI Airports is forecasting a further recovery in passenger numbers – without returning to their 2019 level overall in 2023, because the rebound has been longer to materialize in Asia – and a further improvement in its operating earnings.
VINCI Energies should see further business growth, driven by continuing positive trends in its markets and the integration of recent acquisitions, while solidifying its operating margin.
Cobra IS, supported by its robust order book, is expecting revenue growth of at least 10%, driven by the ramp-up of the large EPC projects won recently and good momentum in its flow business.
New projects will be added to the renewable energy production portfolio, taking total capacity in operation or under construction to at least 2 GW by the end of the year.
VINCI Construction should see further business growth while remaining selective in taking on new business, thereby continuing to improve its operating margin.

This guidance may be fine-tuned as part of the quarterly information at 30 September 2023, particularly depending on VINCI Autoroutes traffic levels and VINCI Airports passenger numbers during the summer.

Interim dividend

On 27 July 2023, the Board of Directors approved the payment of a 2023 interim dividend of €1.05 per share. It will be paid on 16 November 2023 (ex-date: 14 November 2023).

Main transactions with related parties

The main transactions with related parties are described in Note K.28 to the condensed interim consolidated financial statements.

Risk factors

The main risk factors that VINCI could face are described in Section D, "Risk factors and management procedures" of the Report of the Board of Directors contained in the 2022 Universal Registration Document.

Interim financial report at 30 June 2023 - VINCI

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements at 30 June 2023

Consolidated interim financial statements 14

Consolidated income statement for the period 14
Consolidated comprehensive income statement for the period 15
Consolidated balance sheet 16
Consolidated cash flow statement 18
Consolidated statement of changes in equity 20

Notes to the consolidated interim financial statements 21

Condensed consolidated interim financial statements

Consolidated interim financial statements

Consolidated income statement for the period

(in € millions)	Notes	First half 2023	First half 2022^{(1)}	Full year 2022
Revenue^{(1)}	1-2	32,365	28,517	61,675
Concession subsidiaries' revenue derived from works carried out by non-Group companies		369	263	590
Total revenue		32,735	28,779	62,265
Revenue from ancillary activities		163	94	249
Operating expenses	4	(29,348)	(26,048)	(55,691)
Operating income from ordinary activities	1-4	3,549	2,826	6,824
Share-based payments (IFRS 2)	27	(260)	(138)	(356)
Profit/(loss) of companies accounted for under the equity method	4-10	63	34	22
Other recurring operating items		41	(9)	(9)
Recurring operating income	4	3,393	2,713	6,481
Non-recurring operating items	4	17	54	8
Operating income	4	3,410	2,767	6,489
Cost of gross financial debt		(523)	(306)	(750)
Financial income from cash investments		183	41	136
Cost of net financial debt	5	(340)	(265)	(614)
Other financial income and expense	6	(16)	124	279
Income tax expense	7	(816)	(741)	(1,737)
Net income		2,238	1,885	4,417
Net income attributable to non-controlling interests		148	30	157
Net income attributable to owners of the parent		2,089	1,855	4,259
Basic earnings per share (in €)	8	3.70	3.29	7.55
Diluted earnings per share (in €)	8	3.65	3.26	7.47

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

Consolidated comprehensive income statement for the period

(in € millions)	First half 2023	First half 2022^{(1)}	Full year 2022
Net income	2,238	1,885	4,417
Changes in fair value of cash flow and net investment hedging instruments^{(**)}	(267)	299	514
Hedging costs	62	9	11
Tax^{(*** )}	42	(84)	(110)
Currency translation differences	557	356	22
Share of profit/(loss) of companies accounted for under the equity method, net	(12)	234	359
Other comprehensive income that may be recycled subsequently to net income	382	813	795
Equity instruments	(1)	-	-
Actuarial gains and losses on retirement benefit obligations	82	452	362
Tax	(21)	(106)	(97)
Share of profit/(loss) of companies accounted for under the equity method, net	-	-	2
Other comprehensive income that may not be recycled subsequently to net income	60	345	266
Total other comprehensive income recognised directly in equity	443	1,159	1,061
Comprehensive income	2,680	3,043	5,478
of which attributable to owners of the parent	2,278	2,982	5,361
of which attributable to non-controlling interests	402	62	117

(1) The financial statements for the first half of 2022 have been adjusted for the effects of the final purchase price allocation for Cobra IS. See Note A.2, "Changes in consolidation scope in previous periods".
() Changes in the fair value of cash flow hedges are recognised in equity for the effective portion. Cumulative gains and losses in equity are taken to profit or loss at the time when the cash flow affects profit or loss.
In the first half of 2023, those changes consisted of a negative €237 million impact related to cash flow hedges and a negative €30 million impact related to net investment hedges.
(*) Tax effects relating to changes in the fair value of cash flow hedging financial instruments (effective portion) and hedging costs.

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

Consolidated balance sheet

Assets

(in € millions)
	Notes	30/06/2023	30/06/2022^{(1)}	31/12/2022
Non-current assets
Concession intangible assets	12	28,922	25,437	28,224
Goodwill	9	17,476	16,400	17,360
Other intangible assets	15.1	9,185	8,244	9,045
Property, plant and equipment	15.2	11,255	10,335	10,805
Investments in companies accounted for under the equity method	10	1,194	1,001	1,014
Other non-current financial assets	11-13	2,820	2,886	2,588
Derivative financial instruments - non-current assets		134	220	376
Deferred tax assets		951	770	883
Total non-current assets		71,937	65,293	70,294
Current assets
Inventories and work in progress	16	1,958	1,719	1,785
Trade and other receivables	16	20,314	18,540	18,092
Other current assets	16	7,976	6,992	7,402
Current tax assets		445	332	259
Other current financial assets		96	96	84
Derivative financial instruments - current assets		129	153	115
Cash management financial assets	23	398	279	755
Cash and cash equivalents	23	10,760	9,632	12,578
Total current assets		42,076	37,744	41,070
Assets held for sale		649	699	627
Total assets		114,662	103,736	111,991

(*) The financial statements for the first half of 2022 have been adjusted for the effects of the final purchase price allocation for Cobra IS. See Note A2, "Changes in consolidation scope in previous periods".

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

Consolidated balance sheet

Equity and liabilities

(in € millions)	Notes	30/06/2023	30/06/2022 (1)	31/12/2022
Equity
Share capital	20.1	1,491	1,492	1,473
Share premium		13,271	12,610	12,719
Treasury shares	20.2	(2,163)	(2,681)	(2,088)
Consolidated reserves		12,447	11,219	9,872
Currency translation reserves		49	55	(240)
Net income attributable to owners of the parent		2,089	1,855	4,259
Amounts recognised directly in equity	20.3	(157)	(348)	(56)
Equity attributable to owners of the parent		27,029	24,202	25,939
Equity attributable to non-controlling interests	20.4	3,819	1,926	3,470
Total equity		30,849	26,128	29,409
Non-current liabilities
Non-current provisions	17	1,023	1,010	961
Provisions for employee benefits	26	1,077	1,131	1,149
Bonds	22	21,320	20,089	20,425
Other loans and borrowings	22	3,116	2,976	3,205
Derivative financial instruments - non-current liabilities		1,786	1,226	1,939
Non-current lease liabilities	18	1,616	1,614	1,580
Other non-current liabilities		927	1,002	894
Deferred tax liabilities		4,273	3,452	4,162
Total non-current liabilities		35,138	32,500	34,316
Current liabilities
Current provisions	16	6,656	5,970	6,599
Trade payables	16	13,935	12,590	13,088
Other current liabilities	16	20,562	17,266	20,315
Current tax liabilities		491	372	607
Current lease liabilities	18	527	531	522
Derivative financial instruments - current liabilities		501	473	440
Current borrowings	22	5,613	7,653	6,368
Total current liabilities		48,286	44,857	47,939
Liabilities directly associated with assets held for sale		390	252	327
Total equity and liabilities		114,662	103,736	111,991

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

Consolidated cash flow statement

(in € millions)	Notes	First half 2023	First half 2022 (1)	Full year 2022
Consolidated net income for the period (including non-controlling interests)		2,238	1,885	4,417
Depreciation and amortisation		1,848	1,765	3,613
Net increase/(decrease) in provisions and impairment		33	(47)	-
Share-based payments (IFRS 2) and other restatements		158	110	162
Gain or loss on disposals		(28)	(78)	(68)
Change in fair value of financial instruments		(1)	(91)	(236)
Share of profit/(loss) of companies accounted for under the equity method and dividends received from unconsolidated companies		(88)	(36)	(42)
Cost of net financial debt recognised	5	340	265	614
Capitalised borrowing costs		(38)	(11)	(29)
Financial expense on leases	6	30	23	48
Current and deferred tax expense recognised		816	741	1,737
Cash flow from operations before tax and financing costs	1	5,309	4,526	10,215
Changes in operating working capital requirement and current provisions	16	(1,952)	(2,581)	392
Income taxes paid		(1,202)	(771)	(1,603)
Net interest paid		(313)	(273)	(563)
Dividends received from companies accounted for under the equity method		66	48	92
Other long-term advances (14)		75	-	854
Net cash flows (used in)/from operating activities	I	1,982	949	9,387
Purchases of property, plant and equipment and intangible assets		(889)	(617)	(2,621)
Proceeds from sales of property, plant and equipment and intangible assets		67	71	165
Operating investments (net of disposals)	1	(822)	(546)	(2,456)
Investments in concession fixed assets (net of grants received)		(538)	(385)	(880)
Financial receivables (PPP contracts and others)		(45)	11	44
Growth investments (concessions and PPPs)	1	(583)	(374)	(836)
Purchases of shares in subsidiaries and affiliates (consolidated and unconsolidated)		(397)	(323)	(2,131) (141)
Proceeds from sales of shares in subsidiaries and affiliates (consolidated and unconsolidated)		90	6	23
Cash and cash equivalents of acquired companies		111	33	140 (141)
Net financial investments excluding financial debts transferred in business combinations		(196)	(284)	(1,967) (141)
Other		(239)	(255)	(59)
Net cash flows (used in)/from investing activities	II	(1,840)	(1,459)	(5,318)
Share capital increases and decreases and repurchases of other equity instruments		570	379	491
Transactions in treasury shares	20.2	(251)	(905)	(1,100)
Capital increases and reductions of subsidiaries subscribed by third parties		2	-	-
Acquisitions/disposals of non-controlling interests (without acquisition or loss of control)		1	(2)	(53)
Dividends paid	21	(1,839)	(1,298)	(1,892)
- to shareholders of VINCI SA		(1,694)	(1,266)	(1,830)
- to non-controlling interests		(145)	(31)	(62)
Proceeds from new long-term borrowings		1,705	857	2,786
Repayments of long-term borrowings		(1,388)	(1,190)	(3,653)
Repayments of lease liabilities and financial expense on leases		(316)	(310)	(661)
Change in cash management assets and other current financial debts		(147)	1,650	1,245
Net cash flows (used in)/from financing activities	III	(1,663)	(817)	(2,836)
Other changes	IV	62	102	74
Change in net cash	I+II+III+IV	(1,459)	(1,225)	1,306
Net cash and cash equivalents at beginning of period		11,495	10,188	10,188
Net cash and cash equivalents at end of period	23	10,036	8,963	11,495

(1) The financial statements for the first half of 2022 have been adjusted for the effects of the final purchase price allocation for Cobra IS. See Note A2, "Changes in consolidation scope in previous periods".
(2) Long-term advances received from the offtaker in respect of Polo Carmópolis in Brazil.
(3) Including the acquisition of the business activities of Mexican airport operator OMA. See Note A2, "Changes in consolidation scope in previous periods".

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

Change in net financial debt during the period

(in € millions)
Notes	First half 2023	First half 2022 (1)	Full year 2022
Net financial debt at beginning of period	(18,536)	(19,539)	(19,539)
Change in net cash	(1,459)	(1,225)	1,306
Change in cash management assets and other current financial debts	147	(1,650)	(1,245)
(Proceeds from)/repayment of loans	(317)	333	867
Other changes	(745)	(47)	74
Of which financial debts transferred in business combinations	(216)	(209)	(651)
Change in net financial debt	(2,374)	(2,589)	1,002
Net financial debt at end of period	22	(20,910)	(22,127)

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

Consolidated statement of changes in equity
Equity attributable to owners of the parent

(in € millions)	Equity attributable to owners of the parent									Non-controlling interests
	Share capital	Share premium	Treasury shares	Consolidated reserves	Net income (*)	Currency translation reserves	Amounts recognised directly in equity	Total attributable to owners of the parent (*)
Balance at 01/01/2022	1,481	12,242	(1,973)	9,956	2,597	(304)	(1,117)	22,881	1,889	24,771
Net income for the period	-	-	-	-	4,259	-	-	4,259	157	4,417
Other comprehensive income of controlled companies	-	-	-	-	-	88	653	741	(41)	701
Other comprehensive income of companies accounted for under the equity method	-	-	-	-	-	(25)	386	361	-	361
Total comprehensive income for the period	-	-	-	-	4,259	63	1,039	5,361	117	5,478
Increase in share capital	14	477	-	-	-	-	-	491	-	491
Decrease in share capital	(22)	-	784	(763)	-	-	-	-	-	-
Transactions in treasury shares	-	-	(899)	(201)	-	-	-	(1,100)	-	(1,100)
Appropriation of net income and dividend payments	-	-	-	767	(2,597)	-	-	(1,830)	(62)	(1,892)
Share-based payments (IFRS 2)	-	-	-	265	-	-	-	265	-	265
Impact of acquisitions or disposals of non-controlling interests after acquisition of control	-	-	-	(32)	-	-	-	(32)	(19)	(50)
Changes in consolidation scope	-	-	-	-	-	-	-	-	1,550	1,550 (**)
Other	-	-	-	(120)	-	1	22	(98)	(6)	(104)
Balance at 31/12/2022	1,473	12,719	(2,088)	9,872	4,259	(240)	(56)	25,939	3,470	29,409
Net income for the period	-	-	-	-	2,089	-	-	2,089	148	2,238
Other comprehensive income of controlled companies	-	-	-	-	-	311	(110)	201	254	455
Other comprehensive income of companies accounted for under the equity method	-	-	-	-	-	(22)	10	(12)	-	(13)
Total comprehensive income for the period	-	-	-	-	2,089	289	(100)	2,278	402	2,680
Increase in share capital	18	553	-	-	-	-	-	570	2	572
Decrease in share capital	-	-	-	-	-	-	-	-	-	-
Transactions in treasury shares	-	-	(75)	(176)	-	-	-	(251)	-	(251)
Appropriation of net income and dividend payments	-	-	-	2,565	(4,259)	-	-	(1,694)	(145)	(1,839)
Share-based payments (IFRS 2)	-	-	-	193	-	-	-	193	-	193
Impact of acquisitions or disposals of non-controlling interests after acquisition of control	-	-	-	1	-	-	-	1	2	3
Changes in consolidation scope	-	-	-	8	-	(3)	2	8	1	9
Other	-	-	-	(17)	-	2	(2)	(17)	88	71
Balance at 30/06/2023	1,491	13,271	(2,163)	12,447	2,089	49	(157)	27,029	3,819	30,849
Balance at 01/01/2022	1,481	12,242	(1,973)	9,956	2,597	(304)	(1,117)	22,881	1,889	24,771
---	---	---	---	---	---	---	---	---	---	---
Net income for the period	-	-	-	-	1,855	-	-	1,855	30	1,885
Other comprehensive income of controlled companies	-	-	-	-	-	369	524	893	32	925
Other comprehensive income of companies accounted for under the equity method	-	-	-	-	-	(11)	245	234	-	234
Total comprehensive income for the period	-	-	-	-	1,855	358	768	2,982	62	3,043
Increase in share capital	11	368	-	-	-	-	-	379	-	380
Decrease in share capital	-	-	-	-	-	-	-	-	-	-
Transactions in treasury shares	-	-	(708)	(197)	-	-	-	(905)	-	(905)
Appropriation of net income and dividend payments	-	-	-	1,331	(2,597)	-	-	(1,266)	(31)	(1,298)
Share-based payments (IFRS 2)	-	-	-	103	-	-	-	103	-	103
Impact of acquisitions or disposals of non-controlling interests after acquisition of control	-	-	-	(6)	-	-	-	(5)	(3)	(8)
Changes in consolidation scope	-	-	-	1	-	(1)	-	-	6	6
Other	-	-	-	31	-	2	-	33	3	35
Balance at 30/06/2022	1,492	12,610	(2,681)	11,219	1,855	55	(348)	24,202	1,926	26,128

() The financial statements for the first half of 2022 have been adjusted for the effects of the final purchase price allocation for Cobra IS. See Note A2, "Changes in consolidation scope in previous periods".
(*) Including the acquisition of Mexican airport operator OMA. See Note A2, "Changes in consolidation scope in previous periods".

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

Notes to the consolidated interim financial statements

A. Key events and changes in consolidation scope

23
1. Key events
23
2. Changes in consolidation scope
23

B. Accounting policies, consolidation methods, measurement methods and specific arrangements

25
1. Accounting policies
25
2. Consolidation methods
26
3. Measurement rules and methods
27
4. Specific arrangements
28

C. Financial indicators by business line and geographical area

29
1. Segment information by business line
29
2. Breakdown of revenue by geographical area
36
3. Reconciliation and presentation of key performance indicators
37

D. Main income statement items

38
4. Operating income
38
5. Cost of net financial debt
39
6. Other financial income and expense
39
7. Income tax expense
39
8. Earnings per share
40

E. Investments in other companies

41
9. Goodwill
41
10. Investments in companies accounted for under the equity method: associates and joint ventures
42
11. Other non-current financial assets
43

F. Concessions: PPP contracts, concession contracts and other infrastructure

44
12. Concession intangible assets
44
13. PPP financial receivables (controlled companies)
45
14. Off-balance sheet commitments in concessions
45

G. Other balance sheet items and business-related commitments

47
15. Other intangible assets and property, plant and equipment
47
16. Working capital requirement and current provisions
48
17. Non-current provisions
49
18. Lease liabilities
49
19. Other contractual obligations of an operational nature and other commitments given and received
50

H. Equity

51
20. Information on equity
51
21. Dividends
53

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

I. Financing and financial risk management 54
22. Net financial debt 54
23. Net cash managed and available resources 57
24. Financial risk management 58
25. Book and fair value of financial instruments by accounting category 59

J. Employee benefits and share-based payments 61
26. Provisions for employee benefits 61
27. Share-based payments 61

K. Other notes 64
28. Related party transactions 64
29. Note on litigation 64
30. Post-balance sheet events 66

L. Other consolidation rules and methods 67

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

A. Key events and changes in consolidation scope

1. Key events

Assessment of financial performance

VINCI's financial statements for the first half of 2023 show a sharp increase in revenue and earnings compared with the first half of 2022, along with positive free cash flow.

Consolidated revenue totalled €32.4 billion, up 13.5% relative to the first half of 2022, including organic growth of 11.6%.
Operating income from ordinary activities rose sharply, coming in up 25% at €3,549 million, equal to 11.0% of revenue (9.9% in the first half of 2022).
Recurring operating income reached €3,393 million (€2,713 million in the first half of 2022), including the impact of share-based payments (IFRS 2), the contribution from companies accounted for under the equity method and other recurring operating items.
Consolidated net income attributable to owners of the parent amounted to €2,089 million (€1,855 million in the first half of 2022).
Net financial debt was €20.9 billion at 30 June 2023, up €2.4 billion relative to 31 December 2022 and down €1.2 billion over 12 months.

The management report contains information on the operating performance of the Group's various business lines.

Financing transactions and liquidity management

The main financing transactions concerned VINCI and ASF and are presented in Note I, "Financing and financial risk management".

VINCI has total liquidity of €18.5 billion, comprising:

managed net cash of €8.0 billion;
an €8.0 billion confirmed credit facility unused by VINCI SA, of which €7.7 billion is due to expire in November 2025 and another of €2.5 billion due to expire in July 2023. Considering the level of cash, this last credit facility was not renewed.

2. Changes in consolidation scope

The main changes in consolidation scope in the first half of 2023 are detailed below.

VINCI Highways

Via 40 Express: On 19 April 2023, VINCI Highways acquired an additional stake in Via 40 Express, which holds the concession for the Bogotá-Girardot motorway (141 km) until 2046, from its Colombian partner Constructora Conconcreto. Having raised its stake from 50% to 75%, VINCI Highways now has a controlling interest in this company. The company was previously accounted for under the equity method but is now fully consolidated in the Group's financial statements.
Entrevias: On 11 May 2023, VINCI Highways completed the acquisition of a 55% stake in Entrevias, which holds the concession for two toll motorway sections in Brazil until 2047, from Brazilian investment firm Pátria Investimentos. These two sections cover a total distance of 570 km in São Paulo state.

VINCI Highways is entitled to appoint three of the six members of Entrevias's Board of Directors, which takes strategic decisions by voting on a simple majority basis. VINCI therefore has joint control over Entrevias and accounts for it under the equity method. The Group also has a call option over the shares held by non-controlling interests, which can only be exercised in 2027. The analysis regarding VINCI's control of Entrevias may be reviewed at that time.

Work to allocate the purchase prices of the stakes in Via 40 Express and Entrevias was ongoing at 30 June 2023.

Other acquisitions

During the first half of 2023, VINCI Energies acquired 14 companies, mainly in Europe, while VINCI Construction made five acquisitions, including two in North America, two in France and one in the United Kingdom.

Other changes relate mainly to legal restructuring within the Group.

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

(number of companies)	30/06/2023			30/06/2022			31/12/2022
	Total	France	Foreign	Total	France	Foreign	Total	France	Foreign
Controlled companies	2,686	1,137	1,549	2,637	1,155	1,482	2,710	1,158	1,552
Joint ventures (7)	169	97	72	165	88	77	173	104	69
Associates (7)	59	15	44	95	19	76	61	18	43
Total	2,914	1,249	1,665	2,897	1,262	1,635	2,944	1,280	1,664

(*) Companies accounted for under the equity method.

Changes in consolidation scope in previous periods

Cobra IS

The consolidated financial statements at 30 June 2022 have been adjusted for the effects of the final purchase price allocation for Cobra IS, which took place in the second half of 2022. The impact on the main items of the financial statements at 30 June 2022 is set out in the tables below.

(in € millions)	30/06/2022 adjusted	30/06/2022 published	Adjustment
Goodwill	16,400	16,773	(373)
Other intangible assets	8,244	7,473	771
Deferred tax assets	770	711	59
Total assets	103,736	103,279	457
Equity	26,128	26,173	(45)
Deferred tax liabilities	3,452	3,225	227
Other current and non-current liabilities	6,972	6,698	274
Total equity and liabilities	103,736	103,279	457
Operating income from ordinary activities	2,826	2,890	(64)
Net income attributable to owners of the parent	1,855	1,900	(45)

Acquisition of a 29.99% stake in Mexican airport operator OMA

On 7 December 2022, VINCI Airports completed the acquisition of 100% of the equity interests in Seta and Aerodrome. These two companies together indirectly held a 29.99% stake in OMA, which operates 13 airports in Mexico. In the first half of 2023, the Group continued to measure the identifiable assets and liabilities of the acquiree. The allocation of the purchase price will be completed in the second half of 2023.

Acquisition of most of Kontron AG's IT services business

On 29 December 2022, VINCI Energies acquired most of Kontron AG's IT services business in Germany, Switzerland and eight countries in Central and Eastern Europe. The final price for the transaction is €395 million. In the first half of 2023, the Group measured the identifiable assets and liabilities of the acquiree at their fair value and allocated the purchase price. The final goodwill amount is €315 million and has been allocated to the cash-generating units (CGUs) concerned (see Note E.9, "Goodwill").

Other acquisitions and transactions

Other changes in 2022 mainly concerned:

transactions by VINCI Highways to take control of TollPlus LLC and Strait Crossing Development Inc. (SCDI), which were previously accounted for under the equity method;
VINCI Airports' sale of Stockholm Skavsta airport;
the demerger of DEME from its parent company CFE.

For all these acquisitions, VINCI measured the identifiable assets and liabilities of the acquirees at their fair value in accordance with IFRS 3.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

B. Accounting policies, consolidation methods, measurement methods and specific arrangements

1. Accounting policies

The accounting policies used at 30 June 2023 are consistent with those used in preparing the consolidated financial statements at 31 December 2022, except for the standards and/or amendments adopted by the European Union and mandatorily applicable as from 1 January 2023 (1).

The Group's condensed consolidated interim financial statements at 30 June 2023 have been prepared in accordance with IAS 34 "Interim Financial Reporting". They were approved by the Board of Directors on 27 July 2023. As these are condensed consolidated financial statements, they do not include all the information required by IFRSs in relation to full year financial statements and should therefore be read in conjunction with the Group's consolidated financial statements for the period ended 31 December 2022, as set out in the 2022 Universal Registration Document filed with the AMF on 28 February 2023 under the number D.23-0065.

The Group's consolidated financial statements are presented in millions of euros, rounded to the nearest million. This may in certain circumstances lead to non-material differences between the sum of the figures and the subtotals that appear in the tables.

New standards, amendments and interpretations applicable from 1 January 2023

New standards, amendments and interpretations mandatorily applicable from 1 January 2023 have no material impact on VINCI's consolidated financial statements at 30 June 2023. They include mainly:

IFRS 17 "Insurance Contracts", which establishes principles for the recognition, measurement presentation and disclosure of insurance contracts;
Amendments to IAS 12 – "Deferred Tax related to Assets and Liabilities arising from a Single Transaction", which introduce an exception to the initial recognition exemption for transactions that give rise to equal and offsetting amounts of taxable and deductible temporary differences;
Amendments to IAS 8 – "Definition of Accounting Estimates", which clarify the differences between accounting policies and accounting estimates. The latter are now defined as "monetary amounts in financial statements that are subject to measurement uncertainty".

New standards, amendments and interpretations adopted by the IASB but not yet applicable at 30 June 2023

The Group has not applied early the following amendments to standards that could concern the Group and were not mandatorily applicable at 1 January 2023:

Amendments to IAS 1 – "Non-current Liabilities with Covenants";
Amendments to IAS 16 – "Lease Liability in a Sale and Leaseback";
Amendments to IAS 7 and IFRS 7 – "Supplier Finance Arrangements".

A study of the impacts and practical consequences of applying the above amendments is under way. However, they do not contain any provisions that are contrary to the Group's current accounting practices.

Amendments to IAS 12 – "International Tax Reform – Pillar Two Model Rules", which introduce a mandatory and temporary exception to the recognition of deferred tax associated with the Pillar Two tax reform, but had not been endorsed in the European Union at 30 June 2023. Based on preliminary work done, the Group does not at this stage expect this reform to have any material impact on its financial statements.

French pension reforms

Law 2023-270 on the reform of French social security financing, which was enacted on 15 April 2023, gradually increases the statutory retirement age in France from 1 September 2023, so that it will reach 64 in 2030, and accelerates the application of the 2014 Touraine law by increasing the contribution period to 43 years from 2027 instead of 2035. The impact of this change to the pension system is currently being measured by the Group and will be recognised in the second half of 2023. Based on initial estimates involving a sample of entities concerned by the reform, the Group expects a limited decrease in its retirement benefit obligations.

(1) Available at: http://ec.europa.eu/finance/company-reporting/ifrs-financial-statements/index_en.htm

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

2. Consolidation methods

In accordance with IFRS 10, companies in which the Group holds, whether directly or indirectly, the majority of voting rights in shareholders' general meetings, in the boards of directors or in the equivalent management bodies, giving it the power to direct their operational and financial policies, are deemed to be controlled and are fully consolidated. To determine control, VINCI carries out an in-depth analysis of the established governance arrangements and of the rights held by other shareholders.

Where necessary, an analysis is performed in relation to instruments held by the Group or by third parties (potential voting rights, dilutive instruments, convertible instruments, etc.) that, if exercised, could alter the type of influence exerted by each party.

For some infrastructure project companies operating under public-private partnership (PPP) contracts and in which VINCI is not the only capital investor, in addition to the analysis of the governance arrangements with each partner, the Group may look at the characteristics of subcontracting contracts to check that they do not confer additional powers that could lead to a situation of de facto control. This generally concerns construction contracts and contracts to operate/maintain concession assets. An analysis is performed if a specific event takes place that may affect the level of control exerted by the Group, such as a change in an entity's ownership structure or governance, or the exercise of a dilutive financial instrument.

In accordance with IFRS 11, the Group's joint arrangements fall into two categories (joint operations and joint ventures) depending on the nature of the rights and obligations held by each party. Classification is generally determined by the legal form of the project vehicle. The Group has joint control over all of these joint arrangements.

Joint operations: most joint arrangements in the VINCI Energies and VINCI Construction business lines are joint operations because of the legal form of the vehicles used. In France, for example, parties generally use sociétés en participation (SEPs) to contractualise their joint works activities. In some situations, where the facts and circumstances show that a company's activities involve providing services to the parties to the joint arrangement, it is regarded as a joint operation even where the vehicle's legal form does not establish transparency between the joint operators' assets and those of the joint arrangement. In that situation, the parties have the rights to substantially all of the economic benefits associated with the company's assets, and will settle its liabilities. Within the VINCI Group, this situation concerns certain coating plants held and used by VINCI Construction in its road infrastructure construction and renovation activities.

Joint ventures: property development joint arrangements contractualised in France in the form of sociétés civiles de construction-vente (SCCVs) are joint ventures under IFRS 11 and therefore accounted for under the equity method. The same is true of the Group's other joint arrangements taking place through an entity with legal personality and whose production is not intended solely for the parties to the joint arrangement.

Associates are entities over which the Group exerts significant influence. They are accounted for under the equity method in accordance with IAS 28. Significant influence is presumed where the Group's stake is more than or equal to 20%. However, it may arise where the ownership interest is lower, particularly where the Group is represented on the board of directors or any equivalent governance body, and therefore takes part in determining the entity's operational and financial policies and strategy. This applies mainly to the Group's stakes in DEME and CFE, companies at which VINCI has representation on the board of directors.

The holding company of London Gatwick airport and that of the Mexican airport operator OMA have material non-controlling interests (49.99% and 70.01% respectively). The information required by IFRS 12 regarding non-controlling interests is provided in Note I.23.5, "Non-controlling interests" of the 2022 Universal Registration Document. VINCI does not own any interest in structured entities as defined by IFRS 12.

VINCI's consolidated financial statements include the financial statements of all companies with revenue of more than €2 million, and of companies whose revenue is below this figure but whose impact on certain of the Group's balance sheet and income statement indicators is material.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

3. Measurement rules and methods

3.1 Use of estimates

The preparation of financial statements in accordance with IFRSs requires estimates to be used and assumptions to be made that may affect the amounts reported in those financial statements.

The estimates involved assume the operation is a going concern and are made on the basis of information available at the time. They may be revised if the circumstances on which they were based change or if new information becomes available. Actual results may be different from these estimates.

The consolidated interim financial statements have been prepared with reference to the immediate environment, including as regards the estimates presented below:

measurement of revenue from construction and service contracts using the stage of completion method;
measurement of the fair value of identifiable assets acquired and liabilities assumed in business combinations;
determination of discount rates and lease terms to be used to determine the value of right-of-use assets and associated liabilities in respect of leases (IFRS 16);
measurement of amortisation calculated using the unit of production method;
values used in impairment tests on goodwill, other intangible assets and property, plant and equipment;
measurement of provisions;
determination of the discount rates to be used when performing impairment tests (IAS 36) and when calculating the present value of provisions (IAS 37) and employee benefit obligations (IAS 19);
measurement of certain financial instruments at fair value;
measurement of retirement benefit obligations;
measurement of share-based payment expense under IFRS 2;
climate risks.

3.2 Measurement of fair value

Fair value is the price that would be received from selling an asset or paid to transfer a liability in a normal transaction. It is recognised on the basis of the asset or liability's main market (or the most advantageous market if there is no main market), i.e. the one that offers the highest volume and activity levels. The fair value of derivative financial instruments includes a "counterparty risk" component for derivatives carried as assets and an "own credit risk" component for derivatives carried as liabilities.

The Group mainly uses fair value in measuring, on a consistent basis, the derivative instruments, cash and cash equivalents, shares in unconsolidated subsidiaries and affiliates, cash management financial assets and identifiable assets acquired and liabilities assumed in business combinations on its balance sheet. The fair value of other financial instruments (particularly debt instruments and assets measured at amortised cost) is stated in Note I.25, "Book and fair value of financial instruments by accounting category".

To determine these fair values, the Group uses several measurement methods:

market-based approaches, based on observable market prices or transactions;
revenue-based approaches, which convert future cash flows into a present value;
cost-based approaches, which take into account the asset's physical, technological and economic obsolescence.

The following three-level hierarchy of fair values is used:

Level 1 – price quoted on an active market. Marketable securities, some shares in unconsolidated subsidiaries and affiliates (mainly ADP), and listed bond issues are measured in this way.
Level 2 – internal model using internal measurement techniques with observable factors. These techniques are based on usual mathematical computation methods, which incorporate observable market data (forward prices, yield curves, etc.). The calculation of the fair value of most derivative financial instruments (swaps, caps, floors, etc.) traded over the counter is made on the basis of models commonly used to price such financial instruments.

Every quarter, the internally calculated values of derivative instruments are checked for consistency with those sent to VINCI by the counterparties.

Level 3 – internal model using non-observable factors. This model applies to customer relationships and contracts acquired through business combinations, as well as to holdings of unlisted shares, which, in the absence of an active market, are measured at their cost of acquisition plus transaction costs.

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

3.3 Specific measurement rules and methods applied by the Group in preparing the interim financial statements

Seasonal nature of the business

The Group's activities are subject to seasonal variations. In general, first-half performance is characterised by the seasonal nature of the business in most of the Group's activities, particularly:

roadworks, where business volumes are traditionally lower than in the second half of the year, due to weather conditions;
motorway concession companies, where traffic volumes are generally lower in the first half than the second because of the high proportion of light vehicle traffic in the summer period.

In the last few years, first-half revenue has accounted for between 45% and 46% of the full-year total.

As a result, first-half revenue and earnings cannot be extrapolated over the full year.

The seasonality of the Group's business is usually reflected in the net use of cash in the first half, which is attributable to the lower level of receipts during this period and the pattern of operating cash flows, the majority of which is generated in the second half of the year.

The impact of seasonal factors has not resulted in any adjustment to the Group's consolidated interim financial statements.

Group income and expenses in respect of ordinary activities that are of a seasonal, cyclical or occasional nature are accounted for using the same accounting methods as those adopted for the full-year financial statements. They are neither brought forward nor deferred at the interim accounts closing date.

Income and expenses invoiced on an annual basis (e.g. patent and licence fees) are accounted for on a pro rata basis using an estimate for the full year.

Risks arising in the first half are provisioned in the financial statements for the period. As regards loss-making contracts in particular, losses on completion identified during the first half are provisioned in full.

Estimation of the tax expense

The tax expense for the first half is determined by applying the estimated average tax rate for the whole of 2023 (including deferred tax) to pre-tax income. This rate may be adjusted for the tax effects of unusual items recognised during the period.

Retirement benefit obligations

No new comprehensive actuarial assessment is carried out for the consolidated interim financial statements. The expense for the first half in respect of retirement benefit obligations is half the expense calculated for 2023 on the basis of actuarial assumptions at 31 December 2022. Impacts arising from changes in assumptions relating to post-employment benefits in the first half of 2023 (discount rate and long-term inflation rate) are recognised under "Other comprehensive income".

4. Specific arrangements

Climate risks

The Group takes climate risks into consideration, based on its best knowledge, as part of its accounts closing assumptions and reflects their potential impact in the financial statements. The process used, described in the 2022 Universal Registration Document in Note A3, "Specific arrangements" to the consolidated financial statements, remained unchanged at 30 June 2023.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

C. Financial indicators by business line and geographical area

1. Segment information by business line

Based on the Group's organisational structure and internal reporting system, segment information is presented by business line.

The Group's organisation consists of six business lines in three businesses – Concessions, Energy and Construction – along with VINCI Immobilier, which is a business line that reports directly to the holding company.

In accordance with IFRS 8 "Operating Segments", segment information is presented according to this organisation.

Concessions

VINCI Autoroutes: motorway concessions in France (ASF, Escota, Cofiroute, Arcour, Arcos).

VINCI Airports: operation of airports in France and in 11 other countries under full ownership, concession contracts and/or delegated management.

Other concessions: VINCI Highways (motorway and road infrastructure, mainly managed outside France), VINCI Railways (rail infrastructure) and VINCI Stadium (stadium management in France).

Energy

VINCI Energies: services to the manufacturing sector, infrastructure, facilities management, and information and communication technology.

Cobra IS: industrial and energy-related services, development of renewable energy concession projects, and EPC (engineering, procurement and construction) projects in the energy sector.

Construction

VINCI Construction, which is organised into three pillars:

Major Projects: companies designing and carrying out projects that require general contractor capabilities because of their size, complexity or type;
Specialty Networks: companies carrying out works in geotechnical and structural engineering, along with related digital activities, and providing services in nuclear engineering;
Proximity Networks: local companies in France and abroad active in areas such as building, civil engineering, roadworks, rail works and water works.

VINCI Immobilier: property development (residential properties, commercial properties), management of serviced residences and property services.

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

1.1 Segment information by business line

The data below is for the business lines concerned and is stated before elimination, at their own level, of transactions with the rest of the Group.

First half 2023

(in € millions)	Concessions	Energy	Construction		VINCI Immobilier and holding companies	Eliminations	Total
	VINCI Autoroutes VINCI Airports Other concessions	VINCI Energies	Cobra IS	VINCI Construction
Income statement
Revenue(1)	4,998	9,122	3,061	14,914	560	(290)	32,365
Concession subsidiaries' works revenue	405	-	-	-	-	(36)(2)	369
Total revenue	5,404	9,122	3,061	14,914	560	(326)	32,735
Operating income from ordinary activities	2,447	623	230(2)	299	(50)(3)	-	3,549
% of revenue(1)	49.0%	6.8%	7.5%	2.0%			11.0%
Recurring operating income	2,502	558	234(2)	229	(129)(3)	-	3,393
Operating income	2,524	552	237(2)	226	(129)(3)	-	3,410
Cash flow statement
Cash flow from operations before tax and financing costs	3,472	726	297	602	212	-	5,309
% of revenue(1)	69.5%	8.0%	9.7%	4.0%			16.4%
Depreciation and amortisation	1,004	241	62(3)	436	105(3)	-	1,848
Operating investments (net of disposals)	(75)	(121)	(200)	(415)	(10)	-	(822)
Repayment of lease liabilities(4)	(19)	(147)	(13)	(118)	(19)	-	(316)
Operating cash flow	2,159	(27)	(118)	(1,198)	29	-	844
Growth investments (concessions and PPPs)	(510)	-	(75)	2	-	-	(583)
Free cash flow	1,649	(27)	(193)	(1,196)	29	-	261
Balance sheet
Capital employed at 30/06/2023	41,882	5,120	4,823	2,171	2,271	-	56,266
Net financial surplus/(debt)	(29,967)	(461)	334	1,789	7,395	-	(20,910)

(1) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
(2) Intra-group revenue of the VINCI Energies and VINCI Construction business lines derived from works carried out for the Group's concession companies.
(3) Before the amortisation of intangible assets identified when allocating the Cobra IS purchase price for €64 million. This amortisation is recognised at the level of the holding companies.
(4) Including associated financial expense.
PPP: Public-private partnership.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

First half 2022

(in € millions)	Concessions	Energy	Construction		VINCI Immobilier and holding companies	Eliminations	Total
	VINCI Autoroutes
VINCI Airports
Other concessions	VINCI Energies	Cobra IS	VINCI Construction
Income statement
Revenue (5)	4,161	7,755	2,668	13,454	726	(247)	28,517
Concession subsidiaries' works revenue	281	-	-	-	-	(19) (3)	263
Total revenue	4,442	7,755	2,668	13,454	726	(266)	28,779
Operating income from ordinary activities	1,899	507	190 (3)	254	(24) (3)	-	2,826
% of revenue (3)	45.6%	6.5%	7.1%	1.9%			9.9%
Recurring operating income	1,877	455	195 (3)	207	(21) (3)	-	2,713
Operating income	1,930	450	195 (3)	213	(21) (3)	-	2,767
Cash flow statement
Cash flow from operations before tax and financing costs	2,842	618	234	578	254	-	4,526
% of revenue (3)	68.3%	8.0%	8.8%	4.3%			15.9%
Depreciation and amortisation	932	220	45 (3)	464	103 (3)	-	1,765
Operating investments (net of disposals)	(57)	(70)	(54)	(313)	(52)	-	(546)
Repayment of lease liabilities (4)	(19)	(149)	(3)	(122)	(17)	-	(310)
Operating cash flow	2,003	(248)	(237)	(1,361)	(64)	-	93
Growth investments (concessions and PPPs)	(352)	1	(29)	6	-	-	(374)
Free cash flow	1,651	(247)	(265)	(1,355)	(64)	-	(281)
Balance sheet
Capital employed at 30/06/2022	38,875	4,531	4,931	2,399	2,108	-	52,843
Net financial surplus/(debt)	(32,360)	(42)	(125)	1,569	8,831	-	(22,127)

(1) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
(2) Intra-group revenue of the VINCI Energies and VINCI Construction business lines derived from works carried out for the Group's concession companies.
(3) Before the amortisation of intangible assets identified when allocating the Cobra IS purchase price for €64 million. This amortisation is recognised at the level of the holding
(4) Including associated financial expense.
PPP: Public-private partnership.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

Full year 2022

(in € millions)	Concessions	Energy	Construction		VINCI Immobilier and holding companies	Eliminations	Total
	VINCI Autoroutes
VINCI Airports
Other concessions	VINCI Energies	Cobra IS	VINCI Construction
Income statement
Revenue(1)	9,162	16,748	5,520	29,252	1,523	(530)	61,675
Concession subsidiaries' works revenue	663	-	-	-	-	(73)(2)	590
Total revenue	9,825	16,748	5,520	29,252	1,523	(603)	62,265
Operating income from ordinary activities	4,171	1,142	411(3)	1,100	-16	-	6,824
% of revenue(1)	45.5%	6.8%	7.4%	3.8%			11.1%
Recurring operating income	4,099	1,013	416(3)	969	(16)(3)	-	6,481
Operating income	4,140	1,008	409(3)	964	(32)(3)	-	6,489
Cash flow statement
Cash flow from operations before tax and financing costs	6,200	1,426	509	1,707	373	-	10,215
% of revenue(1)	67.7%	8.5%	9.2%	5.8%			16.6%
Depreciation and amortisation	1,900	470	97(3)	938	208(3)	-	3,613
Operating investments (net of disposals)	(123)	(189)	(1,319)	(762)	(63)	-	(2,456)
Repayment of lease liabilities(4)	(36)	(310)	(19)	(261)	(35)	-	(661)
Operating cash flow	4,871	602	130	599	67	-	6,270
Growth investments (concessions and PPPs)	(725)	1	(145)	33	-	-	(836)
Free cash flow	4,146	603	(15)	632	67	-	5,433
Balance sheet
Capital employed at 31/12/2022	40,529	4,540	4,536	827	2,033	-	52,465
Net financial surplus/(debt)	(31,735)	(129)	404	3,460	9,464	-	(18,536)

(1) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
(2) Intra-group revenue of the VINCI Energies and VINCI Construction business lines derived from works carried out for the Group's concession companies.
(3) Before the amortisation of intangible assets identified when allocating the Cobra IS purchase price for €128 million. This amortisation is recognised at the level of the holding companies.
(4) Including associated financial expense.
PPP: Public-private partnership.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

1.2 Information relating to the Concessions business

First half 2023

(in € millions)	Concessions			Total
	VINCI Autoroutes	VINCI Airports	VINCI Highways, VINCI Railways, VINCI Stadium and other
Income statement
Revenue (1)	2,971	1,781	246	4,998
Concession subsidiaries' works revenue	260	114	31	405
Total revenue	3,232	1,895	277	5,404
Operating income from ordinary activities	1,640	780	26	2,447
% of revenue (1)	55.2%	43.8%	10.8%	49.0%
Recurring operating income	1,631	811	60	2,502
Operating income	1,631	811	82	2,524
Cash flow statement
Cash flow from operations before tax and financing costs	2,280	1,083	109	3,472
% of revenue (1)	76.7%	60.8%	44.4%	69.5%
Depreciation and amortisation	660	289	55	1,004
Operating investments (net of disposals)	(11)	(60)	(5)	(75)
Repayment of lease liabilities (14)	(4)	(12)	(3)	(19)
Operating cash flow	1,512	543	103	2,159
Growth investments (concessions and PPPs)	(287)	(187)	(36)	(510)
Free cash flow	1,224	357	68	1,649
Balance sheet
Capital employed at 30/06/2023	18,792	19,530	3,560	41,882
Net financial surplus/(debt)	(16,374)	(9,434)	(4,159)	(29,967)

() Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
(*) Including associated financial expense.
PPP: Public-private partnership.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

First half 2022

(in € millions)	Concessions			Total
	VINCI Autoroutes	VINCI Airports	VINCI Highways, VINCI Railways, VINCI Stadium and other
Income statement
Revenue (1)	2,816	1,126	219	4,161
Concession subsidiaries' works revenue	245	31	5	281
Total revenue	3,061	1,158	224	4,442
Operating income from ordinary activities	1,482	380	37	1,899
% of revenue (1)	52.6%	33.8%	16.9%	45.6%
Recurring operating income	1,475	363	39	1,877
Operating income	1,475	380	75	1,930
Cash flow statement
Cash flow from operations before tax and financing costs	2,114	632	96	2,842
% of revenue (1)	75.1%	56.1%	43.9%	68.3%
Depreciation and amortisation	653	233	46	932
Operating investments (net of disposals)	(13)	(41)	(4)	(57)
Repayment of lease liabilities (2)	(4)	(12)	(3)	(19)
Operating cash flow	1,561	330	112	2,003
Growth investments (concessions and PPPs)	(288)	(65)	1	(352)
Free cash flow	1,273	265	113	1,651
Balance sheet
Capital employed at 30/06/2022	19,487	16,370	3,018	38,875
Net financial surplus/(debt)	(17,088)	(11,251)	(4,021)	(32,360)

() Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
(*) Including associated financial expense.
PPP: Public-private partnership.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

Full year 2022

(in € millions)	Concessions			Total
	VINCI Autoroutes	VINCI Airports	VINCI Highways, VINCI Railways, VINCI Stadium and other
Income statement
Revenue(1)	6,003	2,679	479	9,162
Concession subsidiaries' works revenue	543	111	8	663
Total revenue	6,546	2,791	487	9,825
Operating income from ordinary activities	3,127	983	61	4,171
% of revenue(1)	52.1%	36.7%	12.8%	45.5%
Recurring operating income	3,109	941	49	4,099
Operating income	3,109	940	90	4,140
Cash flow statement
Cash flow from operations before tax and financing costs	4,419	1,580	200	6,200
% of revenue(1)	73.6%	59.0%	41.8%	67.7%
Depreciation and amortisation	1,314	481	106	1,900
Operating investments (net of disposals)	(21)	(94)	(8)	(123)
Repayment of lease liabilities(21)	(8)	(21)	(7)	(36)
Operating cash flow	3,454	1,224	193	4,871
Growth investments (concessions and PPPs)	(578)	(152)	5	(725)
Free cash flow	2,876	1,072	198	4,146
Balance sheet
Capital employed at 31/12/2022	19,019	18,563	2,947	40,529
Net financial surplus/(debt)	(16,985)	(11,131)	(3,618)	(31,735)

() Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
(*) Including associated financial expense.
PPP: Public-private partnership.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

2. Breakdown of revenue by geographical area

(in € millions)	First half 2023	%	First half 2022	%	Full year 2022	%
France	14,379	44.4%	13,466	47.2%	27,948	45.3%
United Kingdom	2,878	8.9%	2,409	8.4%	5,271	8.5%
Germany	2,057	6.4%	1,718	6.0%	4,068	6.6%
Spain	1,733	5.4%	1,473	5.2%	3,005	4.9%
Central and Eastern Europe (*)	1,247	3.9%	1,034	3.6%	2,521	4.1%
Portugal	680	2.1%	550	1.9%	1,248	2.0%
Other European countries	2,260	7.0%	1,861	6.5%	4,044	6.6%
Europe excluding France	10,856	33.5%	9,046	31.7%	20,158	32.7%
Europe (**)	25,234	78.0%	22,512	78.9%	48,106	78.0%
of which European Union	21,663	66.9%	19,560	68.6%	41,620	67.5%
North America	2,328	7.2%	2,026	7.1%	4,942	8.0%
of which United States	1,436	4.4%	1,284	4.5%	2,961	4.8%
of which Canada	892	2.8%	742	2.6%	1,981	3.2%
Central and South America	2,006	6.2%	1,602	5.6%	3,310	5.4%
Africa	832	2.6%	763	2.7%	1,740	2.8%
Asia-Pacific and Middle East	1,965	6.1%	1,614	5.7%	3,577	5.8%
International excluding Europe	7,131	22.0%	6,005	21.1%	13,570	22.0%
International excluding France	17,987	55.6%	15,050	52.8%	33,727	54.7%
Total (***)	32,365	100.0%	28,517	100.0%	61,675	100.0%

() Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia and Ukraine.
() Including the eurozone for €20,123 million in the first half of 2023 (62.2% of total revenue), €18,196 million in the first half of 2022 (63.8% of total revenue) and €38,518 million for full year 2022 (62.5% of total revenue).
(**) Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.

Revenue generated in France amounted to €14,379 million in the first half of 2023, up 6.8% relative to the first half of 2022.

Revenue generated outside France amounted to €17,987 million in the first half of 2023, up 19.5% relative to the first half of 2022. Revenue generated outside France accounted for 55.6% of the Group total in the first six months of the year (52.8% in the first half of 2022 and 54.7% in full-year 2022).

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

3. Reconciliation and presentation of key performance indicators

3.1 Cash flow statement indicators

(in € millions)	First half 2023	First half 2022	Full year 2022
Cash flows (used in)/from operating activities	1,982	949	9,387
Of which other long-term advances	75	-	854
Cash flows (used in)/from operating activities, excluding other long-term advances	1,907	949	8,533
Operating investments (net of disposals and other long-term advances)	(747)	(546)	(1,602)
Repayments of lease liabilities and financial expense on leases	(316)	(310)	(661)
Operating cash flow	844	93	6,270
Growth investments (concessions and PPPs)	(583)	(374)	(836)
Free cash flow	261	(281)	5,433
Purchases of shares in subsidiaries and affiliates (consolidated and unconsolidated)	(397)	(323)	(2,131)(1)
Proceeds from sales of shares in subsidiaries and affiliates (consolidated and unconsolidated)	90	6	23
Net impact of changes in scope including net debt assumed	(104)	(176)	(511)(1)
Other cash flows used in/(from) investing activities	(264)	(257)	(70)
Net financial investments	(412)	(492)	(2,618)
Other	25	2	20
Total net financial investment flows	(651)	(748)	(2,677)

(1) Including the acquisition of the business activities of Mexican airport operator OMA. See Note A2, "Changes in consolidation scope in previous periods".

3.2 Capital employed

(in € millions)	Note	30/06/2023	30/06/2022(1)	31/12/2022
Capital employed - assets		97,911	89,042	93,074
Concession intangible assets	12	28,922	25,437	28,224
- Deferred tax on business combination fair value adjustments		(3,918)	(3,141)	(3,792)
Goodwill, gross	9	17,764	16,702	17,657
Other intangible assets	15.1	9,185	8,244	9,045
Property, plant and equipment	15.2	11,255	10,335	10,805
Investments in companies accounted for under the equity method	10	1,194	1,001	1,014
Other non-current financial assets	11-13	2,820	2,886	2,588
- Collateralised loans and receivables (at more than one year)		(5)	(5)	(5)
Inventories and work in progress	16	1,958	1,719	1,785
Trade and other receivables	16	20,314	18,540	18,092
Other current assets	16	7,976	6,992	7,402
Current tax assets		445	332	259
Capital employed - liabilities		(41,645)	(36,199)	(40,609)
Current provisions	16	(6,656)	(5,970)	(6,599)
Trade payables	16	(13,935)	(12,590)	(13,088)
Other current liabilities	16	(20,562)	(17,266)	(20,315)
Current tax liabilities		(491)	(372)	(607)
Total capital employed		56,266	52,843	52,465

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

D. Main income statement items

4. Operating income

(in € millions)	First half 2023	First half 2022^{(1)}	Full year 2022
Revenue^{(**)}	32,365	28,517	61,675
Concession subsidiaries' revenue derived from works carried out by non-Group companies	369	263	590
Total revenue	32,735	28,779	62,265
Revenue from ancillary activities^{(*** )}	163	94	249
Purchases consumed	(7,066)	(6,809)	(14,894)
External services	(4,504)	(3,477)	(6,684)
Temporary staff	(773)	(658)	(1,561)
Subcontracting (including concession companies' construction costs)	(6,693)	(5,699)	(12,388)
Taxes and levies	(555)	(521)	(1,223)
Employment costs	(8,005)	(7,264)	(14,979)
Other operating income and expense	65	79	99
Depreciation and amortisation	(1,848)	(1,765)	(3,613)
Net provision expense	32	67	(448)
Operating expenses	(29,348)	(26,048)	(55,691)
Operating income from ordinary activities	3,549	2,826	6,824
% of revenue^{(**)}	11.0%	9.9%	11.1%
Share-based payments (IFRS 2)	(260)	(138)	(356)
Profit/(loss) of companies accounted for under the equity method	63	34	22
Other recurring operating items	41	(9)	(9)
Recurring operating income	3,393	2,713	6,481
Impact from changes in scope and gain/(loss) on disposals of shares	17	54	8
Operating income	3,410	2,767	6,489

(1) The financial statements for the first half of 2022 have been adjusted for the effects of the final purchase price allocation for Cobra IS. See Note A2, "Changes in consolidation scope in previous periods".
() Excluding concession subsidiaries' revenue derived from works carried out by non-Group companies.
(*) Revenue from ancillary activities mainly comprises rental income, sales of equipment, materials and merchandise, study work and fees other than those generated by concession operators.

Operating income from ordinary activities measures the operational performance of fully consolidated Group subsidiaries. It excludes share-based payment expense (IFRS 2), certain recurring operating items (including the share of profit or loss of companies accounted for under the equity method), together with non-recurring operating items.

Recurring operating income is obtained by taking operating income from ordinary activities and adding the IFRS 2 expense associated with share-based payments (chiefly Group savings plans and performance share plans), the Group's share of profit or loss of subsidiaries accounted for under the equity method, and other recurring operating income and expense. The latter category includes recurring income and expense relating to companies accounted for under the equity method and to non-consolidated companies (financial income from shareholder loans and advances granted by the Group to some subsidiaries, dividends received from non-consolidated companies). Recurring operating income represents the Group's operational performance excluding the impact of non-recurring transactions and events during the period.

Operating income is calculated by taking recurring operating income and adding non-recurring income and expense, which mainly includes goodwill impairment losses and income and expense relating to changes in scope (capital gains or losses on disposals of securities and the impact of changes in control).

Non-recurring operating items in the first half of 2023 mainly related to the acquisition of control over Via 40 Express – see Note A2, "Changes in consolidation scope".

Non-recurring operating items in the first half of 2022 mainly comprised scope effects arising from transactions by VINCI Highways to take control of SCDI and TollPlus and the disposal of Stockholm Skavsta airport in Sweden.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

5. Cost of net financial debt

The cost of net financial debt amounted to €340 million in the first half of 2023, up €75 million compared with the first half of 2022 (€265 million). The higher return on surplus cash and the positive impact of a transaction to restructure the London Gatwick airport acquisition debt in the first quarter of 2023 partly offset the effect of sharply higher interest rates since the second half of 2022 on the Group's floating rate debt and the impact of acquisitions outside France, particularly in the Concessions business.

The cost of net financial debt can be analysed as follows:

(in € millions)	First half 2023	First half 2022	Full year 2022
Financial liabilities at amortised cost	(536)	(373)	(791)
Financial assets and liabilities at fair value through profit or loss	180	35	120
Derivatives designated as hedges: assets and liabilities	33	68	57
Derivatives at fair value through profit or loss: assets and liabilities	(17)	4	-
Total cost of net financial debt	(340)	(265)	(614)

6. Other financial income and expense

Other financial income and expense break down as follows:

(in € millions)	First half 2023	First half 2022	Full year 2022
Effect of discounting to present value	(38)	43	56
Capitalised borrowing costs	38	11	29
Financial expenses on lease liabilities	(30)	(23)	(48)
Foreign exchange gains and losses, changes in fair value and other changes	14	93	243
Total other financial income and expense	(16)	124	279

Changes in discount rates led to a loss of €18 million in the first half of 2023 in relation to provisions for obligations to maintain the condition of concession assets, as opposed to a gain of €57 million in the first half of 2022. Discounting losses also relate to provisions for retirement benefit obligations (€16 million loss in the first half of 2023 and €7 million in the first half of 2022) and fixed fees at more than one year payable to the concession grantor by Belgrade airport in Serbia in the amount of €3 million (the same level as in the first half of 2022).

Capitalised borrowing costs mainly related to VINCI Autoroutes, Belgrade airport in Serbia, London Gatwick airport in the United Kingdom and the Via 40 Express motorway between Bogotá and Girardot in Colombia.

Changes in fair value amounted to €52 million in the first half of 2023 (versus €59 million in the first half of 2022) and mainly concern shares in Groupe ADP.

7. Income tax expense

The tax expense totalled €816 million, as against €741 million in the first half of 2022.

In the first half of 2023 and excluding non-recurring items, the effective tax rate was 27.2% in France and 27.4% outside France.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

8. Earnings per share

Basic earnings per share is the net income for the period after non-controlling interests, divided by the weighted average number of shares outstanding during the period less the weighted average number of treasury shares.

In calculating diluted earnings per share, the weighted average number of existing shares is adjusted for the potentially dilutive effect of all equity instruments issued by the company, in particular Group savings plans and unvested performance shares. Dilution is determined in accordance with the rules laid down by IAS 33. In accordance with this standard, plans for which the stock market price is greater than the average price during the period are excluded from the diluted earnings per share calculation.

In calculating basic and diluted earnings per share, earnings are also adjusted as necessary for changes in income and expenses taken directly to equity resulting from the conversion into shares of all potentially dilutive instruments.

The table below shows the transition from basic earnings per share to diluted earnings per share:

	First half 2023	First half 2022 (*)	Full year 2022
Net income (in € millions)	I 2,089	1,855	4,259
Total shares	591,649,181	593,750,933	595,524,050
Treasury shares	(26,248,191)	(29,538,833)	(31,178,611)
Before dilution	II 565,400,990	564,212,100	564,345,439
Group savings plans	1,260,677	196,039	189,867
Performance shares	5,563,128	4,589,671	5,974,715
After dilution	III 572,224,795	568,997,810	570,510,021
Basic earnings per share (in €)	I / II 3.70	3.29	7.55
Diluted earnings per share (in €)	I / III 3.65	3.26	7.47

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

E. Investments in other companies

9. Goodwill

In accordance with IAS 36 "Impairment of Assets", an entity must assess on each reporting date whether there is any indication that an asset may be impaired.

Recoverable amounts are based on a value in use calculation. To this end, VINCI checked whether business plans established at the time of the 2022 accounts closing, based on management assumptions in accordance with macroeconomic forecasts, had been materially called into question. No impairment loss was recognised after this analysis.

The methods used by the Group are described, along with additional information, in Note E.9, "Goodwill and goodwill impairment tests" to the 2022 consolidated financial statements presented in the 2022 Universal Registration Document.

Changes in the period were as follows:

(in € millions)	30/06/2023	31/12/2022
Net at beginning of period	17,360	16,099
Goodwill recognised during the period	22	1,270
Companies leaving the consolidation scope	-	(4)
Currency translation differences	82	(18)
Other movements	11	13
Net at end of period	17,476	17,360

The main goodwill items at 30 June 2023 were as follows:

(in € millions)	30/06/2023			31/12/2022
	Gross	Impairment losses	Net	Net
Cobra IS	4,156	-	4,156	4,156
VINCI Airports	3,150	-	3,150	3,086
VINCI Energies France	2,527	-	2,527	2,522
ASF group	1,935	-	1,935	1,935
VINCI Energies Germany	1,037	-	1,037	920
VINCI Energies North America	746	(90)	657	646
VINCI Energies Benelux	467	-	467	454
VINCI Energies Scandinavia	387	-	387	355
VINCI Highways	341	-	341	311
VINCI Energies Kontron (1)	-	-	-	392
Other	3,018	(199)	2,819	2,585
Total	17,764	(288)	17,476	17,360

(1) The final goodwill relating to the acquisition of Kontron AG's IT services business was reallocated at 30 June 2023 between the Germany CGU for €106 million and several CGUs included in the "Other" item for €209 million.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

10. Investments in companies accounted for under the equity method: associates and joint ventures

10.1 Movements during the period

(in € millions)	30/06/2023			31/12/2022
	Associates	Joint ventures	Total	Associates	Joint ventures	Total
Value of shares at beginning of period	493	521	1,014	438	512	950
of which Concessions	78	319	397	32	321	353
of which VINCI Energies	10	5	15	6	6	12
of which Cobra IS	10	15	26	5	13	17
of which VINCI Construction	393	92	486	393	92	485
of which VINCI Immobilier	2	90	91	2	80	82
Increase/(decrease) in share capital of companies accounted for under the equity method	12	(1)	11	7	2	10
Group share of profit or loss for the period	10	53	63	17	5	22
Group share of other comprehensive income for the period	4	(17)	(13)	47	313	361
Dividends paid	(10)	(57)	(66)	(12)	(80)	(92)
Changes in consolidation scope and other	6	131	136	10	2	13
Reclassifications (1)	27	21	48	(14)	(235)	(249)
Value of shares at end of period	543	650	1,194	493	521	1,014
of which Concessions	81	423	504	78	319	397
of which VINCI Energies	12	5	17	10	5	15
of which Cobra IS	51	21	72	10	15	26
of which VINCI Construction	400	103	502	393	92	486
of which VINCI Immobilier	-	98	98	2	90	91

(1) Reclassifications of shares in the negative net equity of equity-accounted companies under provisions for financial risks.
NB: The terms "associates" and "joint ventures" are defined in Note B.2, "Consolidation methods".

At 30 June 2023, the Group's interests in companies accounted for under the equity method mainly included VINCI Highways' stake in Entrevias (€148 million), VINCI Airports' stake in Kansai Airports (€111 million) and VINCI Construction's stake in DEME group (€267 million).

The amounts recorded under "Group share of other comprehensive income for the period" relate mainly to the impact of interest rate hedging transactions on concession and public-private partnership projects.

10.2 Aggregated financial information

The contribution of equity-accounted companies to the Group's consolidated comprehensive income during the period is as follows:

(in € millions)	First half 2023			First half 2022			Full year 2022
	Associates	Joint ventures	Total	Associates	Joint ventures	Total	Associates	Joint ventures	Total
Net income	10	53	63	32	2	34	17	5	22
of which Concessions	5	(1)	4	19	(23)	(4)	20	(59)	(39)
of which VINCI Energies	1	3	4	1	1	2	4	2	6
of which Cobra IS	1	20	22	5	1	5	7	17	24
of which VINCI Construction	7	11	17	7	12	19	(14)	21	7
of which VINCI Immobilier	(3)	20	16	1	11	11	-	25	25
Other comprehensive income	4	(17)	(13)	15	219	234	47	313	361
of which Concessions	6	(22)	(16)	3	221	225	36	326	362
of which Cobra IS	(2)	2	(1)	-	-	-	-	-	-
of which VINCI Construction	1	3	4	12	(3)	9	12	(13)	(1)
Comprehensive income	15	36	50	48	220	268	65	319	383
of which Concessions	10	(22)	(12)	23	199	221	56	267	323
of which VINCI Energies	1	3	4	1	1	2	4	2	6
of which Cobra IS	(1)	22	21	5	1	5	7	17	24
of which VINCI Construction	8	14	21	18	9	28	(3)	8	5
of which VINCI Immobilier	(3)	20	16	1	11	11	-	25	25

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

11. Other non-current financial assets

(in € millions)	30/06/2023	31/12/2022
Financial assets measured at amortised cost	1,392	1,245
Equity instruments	1,292	1,197
Part at more than one year of financial receivables (PPP) (*)	136	146
Other non-current financial assets	2,820	2,588

(*) Information relating to "PPP financial receivables" is provided in Note F.13.

Non-current financial assets measured at amortised cost

Financial assets measured at amortised cost mainly comprise receivables relating to shareholdings, such as shareholders' advances to entities managing concession or PPP projects for €843 million (€735 million at 31 December 2022).

During the period, the change broke down as follows:

(in € millions)	First half 2023	Full year 2022
Beginning of period	1,245	1,161
Acquisitions during the period	248	154
Acquisitions as part of business combinations	2	3
Impairment losses	(1)	(36)
Disposals during the period	(45)	(58)
Other movements and currency translation differences	(57)	21
End of period	1,392	1,245

Equity instruments

Equity instruments mainly include VINCI's stake in Groupe ADP, which is measured at fair value through profit or loss, along with shareholdings in subsidiaries that do not meet VINCI's minimum financial criteria for consolidation.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

F. Concessions: PPP contracts, concession contracts and other infrastructure

12. Concession intangible assets

(in € millions)	VINCI Autoroutes	VINCI Airports	Other concessions (*)	Total
Gross
01/01/2022	34,964	5,794	2,153	42,912
Acquisitions during the period (**)	547	131	99	777
Disposals during the period	(1)	(2)	(1)	(4)
Currency translation differences	-	105	186	292
Changes in scope and other	(3)	3,230	175	3,402
	35,507	9,258	2,613	47,378
Grants received	(22)	-	(8)	(30)
31/12/2022	35,485	9,258	2,605	47,348
Acquisitions during the period (**)	267	157	68	492
Currency translation differences	-	432	96	528
Changes in scope and other	5	164	337	506
	35,758	10,010	3,106	48,874
Grants received	(10)	-	(2)	(12)
30/06/2023	35,748	10,010	3,104	48,862
Amortisation and impairment losses
01/01/2022	(15,979)	(1,135)	(469)	(17,583)
Amortisation during the period	(1,186)	(165)	(81)	(1,432)
Impairment losses	-	(45)	-	(45)
Reversals of impairment losses	-	3	-	3
Disposals during the period	-	2	1	2
Currency translation differences	-	(30)	(24)	(54)
Other movements	(16)	-	1	(15)
31/12/2022	(17,182)	(1,369)	(572)	(19,124)
Amortisation during the period	(600)	(136)	(44)	(780)
Impairment losses	-	(19)	-	(19)
Reversals of impairment losses	-	2	-	2
Currency translation differences	-	6	(9)	(3)
Other movements	(9)	-	(9)	(18)
30/06/2023	(17,790)	(1,515)	(635)	(19,941)
Net
01/01/2022	18,985	4,659	1,684	25,329
31/12/2022	18,304	7,889	2,032	28,224
30/06/2023	17,957	8,495	2,469	28,922

() Including the concessions of Cobra IS.
(*) Including capitalised borrowing costs.

Acquisitions in the period totalled €492 million, as opposed to €335 million in the first half of 2022.

They include investments by VINCI Autoroutes for €250 million and by VINCI Airports for €147 million (€237 million and €50 million respectively in the first half of 2022).

Concession intangible assets include assets under construction for a gross amount of €1,863 million at 30 June 2023 (€1,620 million at 31 December 2022). They relate mainly to VINCI Autoroutes for €1,376 million and VINCI Airports for €474 million.

At 31 December 2022, they concerned VINCI Autoroutes for €1,204 million and VINCI Airports for €407 million.

Scope effects arose mainly from the integration of Via 40 Express in the first half of 2023.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

The main features of concession and PPP contracts are set out in Note F, "Concessions: PPP contracts, concession contracts and other infrastructure" in the 2022 Universal Registration Document.

13. PPP financial receivables (controlled companies)

PPP financial receivables related to concession and PPP contracts managed by the Group are presented on the consolidated balance sheet, for their part at more than one year, under the "Other non-current financial assets" item (see Note E.11, "Other non-current financial assets"). The part at less than one year of these financial receivables is included under "Other current financial assets" on the balance sheet and amounted to €38 million at 30 June 2023.

During the period, the change in the part at more than one year of these receivables broke down as follows:

(in € millions)	First half 2023	Full year 2022
Beginning of period	146	210
New receivables	56	7
Redemptions	(12)	(71)
Other movements and currency translation differences	(54)	(1)
End of period	136	146

14. Off-balance sheet commitments in Concessions

14.1 Companies controlled by the Group

Contractual investment and renewal obligations

(in € millions)	30/06/2023	31/12/2022
ASF group	1,012	1,039
OMA (Grupo Aeroportuario del Centro Norte – Mexico)	479	488
Cofiroute	321	370
Via 40 Express (Colombia)	231	-
ANA group (Portugal)	216	199
North Region airports (Brazil)	175	176
London Gatwick airport (United Kingdom)	109	38
Cobra IS	93	143
ADL - Aéroports de Lyon	68	57
Belgrade airport (Serbia)	45	62
Lima Express (Peru)	34	34
VINCI Highways (Entrevias in Brazil)	-	286
Other	43	29
Total	2,827	2,922

Contractual investment obligations of motorway concession companies consist mainly of undertakings made under concession contracts, multi-year master contracts, the 2015 motorway stimulus plan, the 2018 motorway investment plan and the amendment regarding the western Montpellier bypass at ASF.

Overall, VINCI Autoroutes' investment undertakings amounted to €1,333 million at 30 June 2023 (€1,409 million at 31 December 2022). The decrease in the first half of 2023 reflects progress with works.

The above amounts do not include obligations relating to expenditure to maintain the condition of infrastructure under concession, in respect of which specific provisions based on maintenance plans are set aside (see Note G.16.2, "Breakdown of current provisions").

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

Security interests connected with financing

Collateral security (in the form of pledges of shares and mortgages on land and buildings) is generally granted to secure financing arranged within concession subsidiaries, and breaks down as follows:

(in € millions)	Start date	End date	30/06/2023
London Gatwick airport	2011	2049	2,559
Arcour	2008	2047	571
OMA (Grupo Aeroportuario del Centro Norte – Mexico)	2022	2029	462
Aerodom (airports in the Dominican Republic)	2017	2029	362
Arcos	2018	2045	356
Lima Expresa (Lima expressway – Peru)	2016	2037	287
Belgrade airport	2018	2035	265
ADL – Aéroports de Lyon	2016	2033	220
Gefyra (Rion–Antirion bridge – Greece)	1997	2029	109
Other concession operating companies			281
Total			5,472

Other security interests related to the funding of concession projects have been granted in an amount of €140 million.

14.2 Companies accounted for under the equity method

Contractual investment obligations

At 30 June 2023, the Group's share of investment commitments given by these companies amounted to €933 million (€1,004 million at 31 December 2022). They relate mainly to projects involving infrastructure under construction at VINCI Highways, including Entrevias (motorway sections in São Paulo state in Brazil, €130 million), Via Salis (D4 motorway linking Příbram to Písek in the Czech Republic, €120 million) and Via Mühlhausen Thüringen (B247 federal road in Germany, €94 million).

Collateral security connected with financing

Collateral security has been granted in the form of pledges of shares in companies accounted for under the equity method.

The net carrying amount of the shares pledged at 30 June 2023 was €34 million, representing no material change relative to 31 December 2022.

In addition, €155 million of corporate guarantees were granted, including those given by Cobra IS to the banks providing finance for four high-voltage line projects in Brazil.

Funding commitments

The Group has made commitments to provide funding (capital and/or subordinated loans) to companies accounted for under the equity method. At 30 June 2023, those commitments amounted to €59 million (€67 million at 31 December 2022). They mainly concern the D4 motorway project in the Czech Republic, Pudahuel airport in Chile and the B247 federal road in Germany.

Interim financial report at 30 June 2023 – VINCI

Condensed consolidated interim financial statements

G. Other balance sheet items and business-related commitments

15. Other intangible assets and property, plant and equipment

15.1 Other intangible assets

(in € millions)	Patents and licences	Software	Other	Total
Gross
31/12/2022	254	627	9,061	9,943
30/06/2023	249	652	9,302	10,204
Amortisation and impairment losses
31/12/2022	(48)	(466)	(384)	(898)
30/06/2023	(43)	(494)	(481)	(1,018)
Net
31/12/2022	206	161	8,677	9,045
30/06/2023	206	158	8,821	9,185

At 30 June 2023, other intangible assets amounted to €9,185 million (€9,045 million at 31 December 2022). The main change resulted mainly from movements in the sterling exchange rate since 31 December 2022.

Other intangible assets include €6,443 million corresponding to the right to operate London Gatwick airport at 30 June 2023. Since that right to operate is analogous to a perpetual licence, it does not give rise to amortisation in accordance with IAS 38 "Intangible Assets". The review of assumptions adopted at 31 December 2022 did not show any indications of impairment.

Amortisation recognised during the period totalled €135 million (€112 million in the first half of 2022 and €239 million in full year 2022), including €64 million (€128 million in 2022) relating to the amortisation of Cobra IS intangible assets identified when allocating the purchase price.

15.2 Property, plant and equipment

(in € millions)	Concession operating fixed assets	Land	Constructions and investment property	Plant, equipment and fixtures	Concession operating fixed assets	Right-of-use assets in respect of leases
						Property	Movable assets	Total
Gross
31/12/2022	4,804	1,584	4,369	10,726	28	2,130	1,656	25,297
30/06/2023	4,859	1,644	4,669	11,167	30	2,248	1,792	26,410
Depreciation and impairment losses
31/12/2022	(3,731)	(425)	(1,240)	(7,346)	(16)	(882)	(852)	(14,492)
30/06/2023	(3,805)	(431)	(1,321)	(7,634)	(17)	(992)	(955)	(15,155)
Net
31/12/2022	1,073	1,159	3,129	3,380	13	1,247	804	10,805
30/06/2023	1,054	1,213	3,348	3,533	14	1,256	837	11,255

Property, plant and equipment includes assets under construction for €1,371 million at 30 June 2023 (€1,132 million at 31 December 2022).

At 30 June 2023, right-of-use assets in respect of leases totalled €2,107 million, compared with €2,064 million at 31 December 2022.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

16. Working capital requirement and current provisions

16.1 Change in working capital requirement

(in € millions)	30/06/2023	30/06/2022(*)	31/12/2022	Changes 30/06/2023 vs 31/12/2022
				Business-related changes in the WCR	Changes in consolidation scope	Other changes(**)
Inventories and work in progress (net)	1,958	1,719	1,785	108	24	42
Trade and other receivables	20,314	18,540	18,092	1,940	136	145
Other current assets	7,976	6,992	7,402	518	40	16
- Non-operating assets	(23)	(22)	(20)	(1)	(1)	-
Inventories and operating receivables I	30,225	27,229	27,259	2,566	199	202
Trade payables	(13,935)	(12,590)	(13,088)	(470)	(178)	(199)
Other current liabilities	(20,562)	(17,266)	(20,315)	(152)	(23)	(73)
- Non-operating liabilities	1,638	381	1,661	(8)	7	(22)
Trade and other operating payables II	(32,859)	(29,475)	(31,742)	(629)	(194)	(294)
Working capital requirement (excluding current provisions) I+II	(2,633)	(2,247)	(4,483)	1,937	5	(92)
Current provisions	(6,656)	(5,970)	(6,599)	16	(4)	(68)
of which part at less than one year of non-current provisions	(136)	(108)	(146)	10	-	(1)
Working capital requirement (including current provisions)	(9,290)	(8,217)	(11,082)	1,952	-	(161)

16.2 Breakdown of current provisions

Changes in current provisions reported in the balance sheet for the first half of 2023 and full year 2022 were as follows:

(in € millions)	Opening	Provisions taken	Provisions used	Other reversals not used	Changes in consolidation scope and miscellaneous	Change in the part at less than one year	Currency translation differences	Closing
01/01/2022	4,973	2,256	(1,469)	(196)	529	(14)	44	6,123
Obligation to maintain the condition of concession assets	1,024	198	(127)	(29)	95	-	3	1,164
After-sales service	442	127	(93)	(20)	12	-	(3)	466
Losses on completion and construction project liabilities	1,800	1,147	(989)	(84)	15	-	(2)	1,886
Disputes	678	281	(183)	(33)	1	-	(2)	742
Restructuring costs	27	5	(13)	(2)	-	-	-	17
Other current liabilities	1,963	851	(569)	(88)	9	-	11	2,178
Reclassification of the part at less than one year of non-current provisions	188	-	-	-	(4)	(37)	(1)	146
31/12/2022	6,123	2,611	(1,973)	(257)	127	(37)	6	6,599
Obligation to maintain the condition of concession assets	1,164	116	(55)	-	1	-	13	1,239
After-sales service	466	74	(59)	(4)	1	-	3	481
Losses on completion and construction project liabilities	1,886	616	(697)	(7)	3	-	(4)	1,798
Disputes	742	88	(66)	(37)	8	-	5	740
Restructuring costs	17	2	(4)	(2)	-	-	-	13
Other current liabilities	2,178	306	(228)	(41)	28	-	7	2,249
Reclassification of the part at less than one year of non-current provisions	146	-	-	-	-	(10)	1	136
30/06/2023	6,599	1,202	(1,110)	(90)	40	(10)	25	6,656

Current provisions relating to the operating cycle consist mainly of provisions in respect of construction contracts and provisions for the obligation to maintain the condition of concession assets. In particular, they are intended to cover expenses to be incurred by:

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

motorway concession operating companies for repairs of roads, bridges, tunnels and hydraulic infrastructure. At 30 June 2023, they mainly concerned the ASF group for €556 million (€534 million at 31 December 2022) and Cofiroute for €275 million (€264 million at 31 December 2022);
airport concession companies (repairs to runways, traffic lanes and other paved surfaces) for €371 million (€333 million at 31 December 2022) including €133 million for the ANA group (€125 million at 31 December 2022) and €114 million for OMA (€94 million at 31 December 2022).

Provisions for other current liabilities mainly consist of individual provisions with a value of less than €2 million each. They include provisions for worksite restoration and removal costs for €230 million (€230 million at 31 December 2022).

17. Non-current provisions

Changes in other non-current provisions (excluding employee benefits) were as follows in the first half of 2023 and full year 2022:

(in € million)	Opening	Provisions taken	Provisions used	Other reversals not used	Changes in consolidation scope and miscellaneous	Change in the part at less than one year of non-current provisions	Currency translation differences	Closing
01/01/2022	1,140	194	(69)	(6)	(137)	14	-	1,137
Financial risks	933	53	(12)	(2)	(257)	-	-	715
Other liabilities	393	134	(107)	(9)	(17)	-	(2)	392
Reclassification of the part at less than one year of non-current provisions	(188)	-	-	-	4	37	1	(146)
31/12/2022	1,137	188	(119)	(11)	(269)	37	(1)	961
Financial risks	715	11	(15)	-	39	-	-	751
Other liabilities	392	52	(28)	(1)	(10)	-	3	409
Reclassification of the part at less than one year of non-current provisions	(146)	-	-	-	-	10	(1)	(136)
30/06/2023	961	64	(43)	(1)	30	10	2	1,023

Provisions for financial risks

Provisions for financial risks mainly include the Group's share of the negative net equity of companies accounted for under the equity method.

Provisions for other liabilities

Provisions for other liabilities, not directly linked to the operating cycle, include provisions for disputes and arbitration, some of which are described in Note K29, "Note on litigation".

18. Lease liabilities

At 30 June 2023, lease liabilities amounted to €2,143 million, including €1,616 million for the part at more than one year and €527 million for the part at less than one year.

The net increase of €41 million during the period breaks down as follows:

new lease liabilities: increase of €284 million;
repayments of lease liabilities: decrease of €287 million;
other changes: increase of €44 million, mainly due to scope effects.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

19. Other contractual obligations of an operational nature and other commitments given and received

19.1 Other contractual obligations of an operational nature

(in € millions)	30/06/2023	31/12/2022
Purchase and capital expenditure obligations^{(1)}	1,555	1,571
Obligations related to quarrying rights	99	98

(1) Excluding capital investment obligations related to concession and PPP contracts (see Note F, "Concessions: PPP contracts, concession contracts and other infrastructure" of the 2022 Universal Registration Document).

Other purchase and capital expenditure obligations, excluding those relating to concession contracts, mainly concern Cobra IS's photovoltaic projects in Brazil and Spain for €917 million and, to a lesser extent, commitments made by VINCI Energies, VINCI Construction and VINCI Immobilier.

VINCI Concessions, via its VINCI Concessions Ventures subsidiary, has made a commitment to invest in the Clean H2 Infra Fund, which is dedicated to clean hydrogen infrastructure solutions.

Obligations related to quarry operations include quarrying rights and quarry leases at VINCI Construction.

19.2 Other commitments given and received

(in € millions)	30/06/2023	31/12/2022
Other commitments given	1,592	1,477
Other commitments received	954	781

These amounts include various tax and social security-related guarantees as well as personal sureties provided as performance guarantees relating to work done by concession companies.

The Group's off-balance sheet commitments are subject to specific reporting at each annual and interim closing.

They are presented according to the activity to which they relate, in the corresponding notes.

The commitments given and received by the Group in connection with concession contracts, construction contracts and items connected with unrecognised retirement benefit obligations are shown in the following notes:

Note F.14, "Off-balance sheet commitments in Concessions";
Note J.26 "Provisions for employee benefits".

Commitments given and received by the Group in connection with construction and service contracts are detailed in Note G.16.3 in the 2022 Universal Registration Document.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

H. Equity

20. Information on equity

Capital management policy

VINCI has a share buy-back programme approved in its Shareholders' General Meeting of 13 April 2023 for a period of 18 months, with a maximum purchase amount of €4 billion at a maximum price of €140 per share. In the first half of 2023, VINCI acquired 2,398,739 shares on the market at an average price of €104.22 per share, for a total of €250 million.

Treasury shares (see Note H.20.2, "Treasury shares") are allocated to financing external growth transactions and to covering performance share plans and the employer contributions to international employee share ownership plans. They may also be cancelled.

VINCI's employee savings policy aims to make it easier for Group employees to become shareholders. At 30 June 2023, over 41% of the Group's employees (84% in France) were VINCI shareholders through collective employee share ownership arrangements. Since those funds own 10.37% of the company's shares, the Group's current and former employees form its largest group of shareholders.

Neither the Group's consolidated equity nor the equity of parent company VINCI SA is subject to any external constraints in the form of financial covenants.

20.1 Share capital

At 30 June 2023, the parent company's share capital was represented by 596,431,645 ordinary shares of €2.5 nominal value each.

Changes in the number of shares

	30/06/2023	31/12/2022
Number of shares at beginning of period	589,387,330	592,362,376
Increases in share capital	7,044,315	5,624,954
Cancelled treasury shares	-	(8,600,000)
Number of shares at end of period	596,431,645	589,387,330
Number of shares issued and fully paid	596,431,645	589,387,330
Nominal value of one share (in €)	2.5	2.5
Treasury shares held directly by VINCI	26,241,732	25,790,809
of which shares allocated to covering performance share plans and employee share ownership plans	15,100,779	17,048,595

20.2 Treasury shares

Changes in treasury shares were as follows:

	30/06/2023	31/12/2022
Number of shares at beginning of period	25,790,809	24,781,783
Shares repurchased during the period	2,398,739	11,949,984
Shares granted to employees (2019 performance share plan)	-	(1,821,638)
Shares granted to employees (2020 performance share plan)	(1,949,470)	(2,135)
Shares granted to employees (2021 performance share plan)	(150)	(1,700)
Shares granted to employees (2022 performance share plan)	-	(750)
Delivery of shares in connection with the Castor International plan	1,804	(514,735)
Cancelled treasury shares	-	(8,600,000)
Number of shares at end of period	26,241,732	25,790,809

At 30 June 2023, the total number of treasury shares held was 26,241,732. These were recognised as a deduction from consolidated equity for €2,163 million.

A total of 15,100,779 shares are allocated to covering long-term incentive plans and employee share ownership transactions and 11,140,953 shares are intended to be used as payment in external growth transactions or to be sold or cancelled.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

20.3 Amounts recognised directly in equity

The main amounts recognised directly in equity are as follows:

(in € millions)	30/06/2023			31/12/2022
	Attributable to owners of the parent	Attributable to non-controlling interests	Total	Attributable to owners of the parent	Attributable to non-controlling interests	Total
Hedging costs
Reserve at beginning of period	(27)	-	(27)	(43)	-	(43)
Gross reserve before tax effect at balance sheet date I	39	-	39	(27)	-	(27)
Cash flow hedge and net investment hedges
Reserve at beginning of period	170	1	172	(879)	1	(878)
Changes in fair value of companies accounted for under the equity method	4	-	4	505	-	505
Other changes in fair value in the period	(98)	-	(98)	437	1	438
Fair value items recognised in profit or loss	(170)	-	(170)	76	-	76
Changes in consolidation scope and miscellaneous	1	-	1	31	-	31
Gross reserve before tax effect at balance sheet date II	(92)	1	(91)	170	1	172
of which gross reserve relating to companies accounted for under the equity method	(33)	-	(33)	(37)	-	(37)
Total gross reserve before tax effects (items that may be recycled to income) I+II	(54)	1	(52)	143	1	145
Associated tax effect	(1)	-	(1)	(45)	-	(45)
Reserve net of tax (items that may be recycled to income) III	(54)	1	(53)	98	1	99
Equity instruments
Reserve at beginning of period	(2)	-	(2)	(1)	-	(1)
Reserve net of tax at end of period IV	(2)	-	(2)	(2)	-	(2)
Actuarial gains and losses on retirement benefit obligations
Reserve at beginning of period	(153)	57	(96)	(394)	31	(362)
Actuarial gains and losses recognised in the period	72	10	82	330	34	364
Associated tax effect	(19)	(2)	(21)	(89)	(9)	(98)
Reserve net of tax at end of period V	(100)	64	(36)	(153)	57	(96)
Total reserve net of tax (items that may not be recycled to income) IV+V	(102)	64	(38)	(155)	57	(98)
Total amounts recognised directly in equity III+IV+V	(157)	65	(91)	(56)	57	1

The amounts recorded directly in equity mainly concern hedging transactions (negative effect of €91 million), comprising:

transactions relating to net investment hedges (negative effect of €72 million), which mainly concern concession activities outside France;
interest rate hedges (positive effect of €25 million);
other currency and commodity price hedges (negative effect of €44 million).

These transactions are described in Note J.27.1.2, "Description of hedging transactions" in the 2022 Universal Registration Document.

20.4 Non-controlling interests

Non-controlling interests amounted to €3,819 million at 30 June 2023 (€3,470 million at 31 December 2022).

At 30 June 2023, the Group owned two subsidiaries in which there were material non-controlling interests. They were London Gatwick airport (49.99% not owned by VINCI) and Mexican airport operator OMA (70.01% not owned by VINCI).

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

21. Dividends

In the 13 April 2023 Shareholders' General Meeting, shareholders approved a dividend payment of €4.00 per share with respect to 2022. An interim dividend of €1.00 per share was paid in November 2022 and the final dividend of €3.00 per share was paid in cash on 27 April 2023.

Dividends paid by VINCI SA to its shareholders in respect of 2022 and 2021 break down as follows:

	2022	2021
Dividend per share (in €)
Interim dividend	1.00	0.65
Final dividend	3.00	2.25
Net total dividend	4.00	2.90

Amount of dividend (in € millions)
Interim dividend	565	372
Final dividend	1,694	1,266
Net total dividend	2,259	1,638

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

I. Financing and financial risk management

22. Net financial debt

At 30 June 2023, net financial debt, as defined by the Group, stood at €20.9 billion, up almost €2.4 million compared with 31 December 2022. It breaks down as follows:

Analysis by accounting heading	(in € millions)	30/06/2023			31/12/2022
		Non-current	Current(*)	Total	Non-current	Current(*)	Total
Financial liabilities at amortised cost	Bonds	(21,320)	(1,098)	(22,418)	(20,425)	(1,258)	(21,683)
	Other bank loans and other financial debt	(3,116)	(1,321)	(4,437)	(3,205)	(1,003)	(4,208)
	Long-term financial debt(**)	(24,436)	(2,418)	(26,854)	(23,629)	(2,262)	(25,891)
	Commercial paper	-	(1,482)	(1,482)	-	(1,947)	(1,947)
	Other current financial liabilities	-	(872)	(872)	-	(977)	(977)
	Bank overdrafts	-	(724)	(724)	-	(1,083)	(1,083)
	Financial current accounts - liabilities	-	(117)	(117)	-	(99)	(99)
	I - Gross financial debt	(24,436)	(5,613)	(30,049)	(23,629)	(6,368)	(29,997)
	of which impact of fair value hedges	1,644	-	1,644	1,804	-	1,804
	of which effect of recognising London Gotwick's debt at fair value	(377)	-	(377)	(382)	-	(382)
Financial assets at amortised cost	Collateralised loans and financial receivables	5	-	5	5	12	16
	Financial current accounts - assets	-	154	154	-	252	252
Financial assets measured at fair value through profit or loss	Cash management financial assets	-	244	244	-	503	503
	Cash equivalents	-	4,012	4,012	-	4,227	4,227
	Cash	-	6,748	6,748	-	8,351	8,351
	II - Financial assets	5	11,158	11,163	5	13,345	13,349
Derivatives	Derivative financial instruments - liabilities	(1,786)	(501)	(2,287)	(1,939)	(440)	(2,379)
	Derivative financial instruments - assets	134	129	263	376	115	491
	III - Derivative financial instruments	(1,652)	(372)	(2,024)	(1,563)	(325)	(1,888)
	Net financial debt I+II+III	(26,083)	5,172	(20,910)	(25,188)	6,651	(18,536)
	Of which:
	Concessions	(32,807)	2,840	(29,967)	(33,931)	2,196	(31,735)
	VINCI Energies	(1,801)	1,341	(461)	(1,820)	1,691	(129)
	Cobra IS	(532)	866	334	(664)	1,067	404
	VINCI Construction	(1,160)	2,949	1,789	(1,212)	4,672	3,460
	Holding companies and VINCI Immobilier	10,218	(2,824)	7,395	12,439	(2,974)	9,464

() The current part includes accrued interest not matured.
(*) Including the part at less than one year.

Derivative financial instruments that are not designated as hedges for accounting purposes are reported as "Derivative financial instruments - current assets" or "Derivative financial instruments - current liabilities", whatever their maturity dates.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

Change in net financial debt

(in € millions)	Opening	Cash flows	Ref.	"Non-cash" changes					Ref.	Closing
				Changes in consolidation scope	Exchange rate effect	Changes in fair value	Other changes	"Non-cash" total
Bonds (non-current)	(20,425)	(1,173)	(3)	22	(183)	(162)	600	278	(4)	(21,320)
Other loans and borrowings (non-current)	(3,205)	(203)	(3)	(42)	(68)	-	402	292	(4)	(3,116)
Current borrowings	(6,368)	2,018	-	(263)	(59)	-	(942)	(1,264)	-	(5,613)
of which the part at less than one year of long-term debts	(1,969)	1,078	(3)	(176)	(45)	-	(1,035)	(1,256)	(4)	(2,147)
of which current financial debts at inception	(3,016)	577	(2)	(92)	(7)	-	90	(9)	(4)	(2,448)
of which accrued interest on bank debts	(299)	-	(4)	6	(4)	-	4	6	(4)	(294)
of which bank overdrafts	(1,083)	363	(1)	(1)	(3)	-	-	(4)	(1)	(724)
Collateralised loans and receivables	16	(7)	(4)	24	-	-	(27)	(4)	(4)	5
Cash management financial assets	755	(430)	-	43	6	-	24	73	-	398
of which cash management financial assets (excluding accrued interest)	755	(430)	(2)	43	6	-	25	73	(4)	398
of which accrued interest on cash management assets	-	-	(4)	-	-	-	-	-	(4)	-
Cash and cash equivalents	12,578	(1,995)	(1)	112	35	12	18	177	(1)	10,760
Derivative financial instruments	(1,888)	(19)	-	-	5	(65)	(57)	(117)	-	(2,024)
of which fair value of derivatives	(1,941)	(19)	(3)	-	5	(65)	-	(60)	(4)	(2,020)
of which accrued interest on derivatives	53	-	(4)	-	-	-	(57)	(57)	(4)	(4)
Net financial debt	(18,536)	(1,809)	(5)	(104)	(265)	(214)	19	(565)	(5)	(20,910)

Comments regarding cash flows in the period can be found in the management report (see Note 4, "Cash flow"). Non-cash changes during the period (decrease of €565 million) mainly comprise changes in the fair value of debt hedging instruments and the effect of exchange rate movements.

The table below reconciles changes in net financial debt with the cash flow statement.

Reconciliation of net financial debt with financing flows shown in the cash flow statement

(in € millions)	Ref.	30/06/2023
Change in net cash	(1)	(1,459)
Change in cash management assets and other current financial debts	(2)	147
(Proceeds from)/repayment of loans	(3)	(317)
Other changes	(4)	(745)
Change in net financial debt	(5)	(2,374)

22.1 Detail of long-term financial debt by business line

The breakdown of net long-term financial debt (including the part at less than one year) by business line at 30 June 2023 was as follows:

(in € millions)	30/06/2023			31/12/2022
	Bonds	Other bank loans and other financial debt	Total	Bonds	Other bank loans and other financial debt	Total
Concessions	(15,814)	(3,398)	(19,212)	(15,684)	(3,384)	(19,067)
VINCI Energies	-	(44)	(44)	-	(36)	(36)
Cobra IS	-	(909)	(909)	-	(706)	(706)
VINCI Construction	-	(85)	(85)	-	(82)	(82)
Holding companies and VINCI Immobilier	(6,604)	-	(6,604)	(5,999)	-	(5,999)
Total	(22,418)	(4,437)	(26,854)	(21,683)	(4,208)	(25,891)

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

At 30 June 2023, long-term net financial debt amounted to €26.9 billion, up €1.0 billion compared with the 31 December 2022 figure of €25.9 billion. Aside from adverse movements in exchange rates and the fair value of interest rate hedging instruments, this change results from the following transactions:

In January, ASF issued €700 million of bonds due to mature in January 2033, with a coupon of 3.25%, and redeemed €700 million of bonds issued in 2013, with a coupon of 2.875%. It also redeemed two private placements, one for €70 million in January and one for €50 million in May, as well as €55 million of debt from the European Investment Bank in the second quarter of 2023.
In May, VINCI SA issued €500 million of bonds due to mature in February 2025 and paying a coupon of 3.375%.

Maturity of debts

At 30 June 2023, the weighted average maturity of the Group's long-term financial debt was 6.7 years (6.9 years at 31 December 2022). The average maturity was 7.1 years in Concessions, 6.2 years for holding companies and VINCI Immobilier, 3.8 years for VINCI Energies, 1.6 years for Cobra IS and 3.8 years for VINCI Construction.

22.2 Credit ratings and financial covenants

Credit ratings

At 30 June 2023, the Group's credit ratings were as follows:

	Agency	Rating
		Long-term	Outlook	Short-term
VINCI SA	Standard & Poor's	A-	Stable	A2
	Moody's	A3	Stable	P2
ASF	Standard & Poor's	A-	Stable	A2
	Moody's	A3	Stable	P2
Cofiroute	Standard & Poor's	A-	Stable	A2
Gatwick Funding Limited(*)	Standard & Poor's	BBB	Negative
	Moody's	Baa2	Stable
	Fitch	BBB+	Stable

(*) Company that raises funding for London Gatwick airport.

In the first half of 2023:

Fitch upgraded its outlook on Gatwick Funding Limited from negative to stable, while confirming its long-term rating of BBB+;
Standard & Poor's confirmed its credit ratings on VINCI SA in March 2023 (A- long-term and A2 short-term, with stable outlook);
Standard & Poor's confirmed its credit ratings on ASF and Cofiroute in June 2023 (A- long-term with stable outlook).

Financial covenants

Some financing agreements include early repayment clauses applicable in the event of non-compliance with financial ratios.

The Group regularly tracks developments relating to these financial covenants and has a process for monitoring these ratios. The Group currently complies with all of these ratios.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

23. Net cash managed and available resources

At 30 June 2023, the Group's available resources amounted to €18.5 billion, including €8.0 billion of net cash managed and €10.5 billion of confirmed credit facilities remaining unused by VINCI SA.

23.1 Net cash managed

Net cash managed, which includes cash management financial assets and commercial paper issued, breaks down as follows:

30 June 2023

(in € millions)	30/06/2023
	Concessions	Energy		Construction		VINCI Immobilier and holding companies
	VINCI Autoroutes VINCI Airports Other concessions	VINCI Energies	Cobra IS	VINCI Construction	VINCI Immobilier and holding companies
Cash equivalents	283	7	918	268	2,535	4,012
Marketable securities and mutual funds (UCITS)	-	-	-	-	1,517	1,517
Negotiable debt securities with an original maturity of less than 3 months(1)	283	7	918	268	1,018	2,494
Cash	1,013	517	926	2,158	2,135	6,748
Bank overdrafts	(5)	(103)	-	(587)	(29)	(724)
Net cash and cash equivalents	1,291	421	1,844	1,839	4,641	10,036
Cash management financial assets	19	103	113	5	3	244
Negotiable debt securities and bonds with an original maturity of less than 3 months	19	65	76	-	3	164
Negotiable debt securities and bonds with an original maturity of more than 3 months	-	38	37	5	-	80
Commercial paper issued	-	-	(1)	-	(1,481)	(1,482)
Other current financial liabilities	(144)	(7)	(712)	(8)	(2)	(872)
Balance of cash management current accounts	3,948	853	-	1,152	(5,915)	37
Net cash managed	5,115	1,370	1,245	2,988	(2,754)	7,963

(1) Including term deposits, interest earning accounts and certificates of deposit.

31 December 2022

(in € millions)	31/12/2022
	Concessions	Energy		Construction		VINCI Immobilier and holding companies
	VINCI Autoroutes VINCI Airports Other concessions	VINCI Energies	Cobra IS	VINCI Construction	VINCI Immobilier and holding companies
Cash equivalents	265	34	433	122	3,373	4,227
Marketable securities and mutual funds (UCITS)	-	-	-	-	1,327	1,327
Negotiable debt securities with an original maturity of less than 3 months(1)	265	34	433	122	2,046	2,900
Cash	1,377	535	1,129	2,709	2,601	8,351
Bank overdrafts	-	(59)	-	(998)	(27)	(1,083)
Net cash and cash equivalents	1,642	510	1,562	1,834	5,947	11,495
Cash management financial assets	-	53	447	-	4	503
Negotiable debt securities and bonds with an original maturity of less than 3 months	-	46	417	-	4	467
Negotiable debt securities and bonds with an original maturity of more than 3 months	-	6	30	-	-	37
Commercial paper issued	-	-	(20)	-	(1,927)	(1,947)
Other current financial liabilities	(79)	(7)	(879)	(10)	(1)	(977)
Balance of cash management current accounts	3,113	1,149	-	2,872	(6,981)	152
Net cash managed	4,675	1,704	1,110	4,695	(2,957)	9,227

(1) Including term deposits, interest earning accounts and certificates of deposit.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

The investment vehicles used by the Group are money market UCITS, interest earning bank accounts, term deposits and negotiable debt securities (certificates of deposit generally with a maturity of less than three months). They are measured and recognised at their fair value.

At 30 June 2023, net cash managed by VINCI SA amounted to €2.0 billion, arising mainly from the cash surpluses transferred upwards from French subsidiaries through a cash pooling system. VINCI Finance International, a wholly owned subsidiary of VINCI SA that centralises the cash surpluses of foreign subsidiaries, managed cash investments of €1.0 billion at 30 June 2023.

This centralisation ensures optimal management of the Group's financial resources and better management of the risks relating to the counterparties and investment vehicles used.

Certain subsidiaries' cash investments are managed in a decentralised manner while complying with the guidelines and instructions issued by VINCI, which define aspects such as the investment vehicles and the counterparties authorised. The investments amounted to €4.9 billion at 30 June 2023, including €1.2 billion for the Concessions business and €3.6 billion for VINCI Energies, Cobra IS and VINCI Construction combined.

23.2 Other available resources

Revolving credit facilities

VINCI has a €8 billion confirmed syndicated revolving credit facility. After two extensions of one year each, the original maturity of the credit facility (November 2023) was extended until November 2025 for an authorisation of €7.7 billion.

At 30 June 2023, VINCI also had a second €2.5 billion facility due to expire in July 2023, with two extension options of six months each. This facility was not renewed.

None of these credit facilities contain any default clause relating to non-compliance with financial ratios. They were undrawn at 30 June 2023.

Some Group entities also have revolving credit facilities, including the company that owns London Gatwick airport and certain Cobra IS subsidiaries. Those facilities were partly drawn at 30 June 2023.

Commercial paper

VINCI SA has a €5 billion commercial paper programme rated A2 by Standard & Poor's and P2 by Moody's. At 30 June 2023, €1.5 billion had been issued under that programme.

Cobra IS has a €200 million commercial paper programme, of which it was using €1 million at 30 June 2023.

24. Financial risk management

The Group's policies and procedures for managing financial risk are identical to those described in Note J.27, "Financial risk management" in the 2022 Universal Registration Document. Transactions to set up or unwind hedging instruments during the first half did not materially alter VINCI's exposure to financial risks.

The main risks – interest rate risk, foreign exchange risk, credit and counterparty risk, and equity risk – are described respectively in Notes J.27.1, J.27.2, J.27.3 and J.27.4 in the 2022 Universal Registration Document.

The Group regularly analyses its hedge relationships to ensure that the hedged cash flows remain highly probable. The main interest rate exposures hedged by the Group concern financing arranged by VINCI SA, ASF and Cofiroute. The Group does not expect any change in the timing or amount of the hedged cash flows relating to this financing.

The other hedged exposures concern project financing; hedges of exposures that show a risk of a change in the repayment schedule have been adjusted to maintain perfect matching.

As regards currency translation risk, the net positions of hedged subsidiaries were closely monitored in order to ensure the absence of over-hedging.

The principles used to measure financial instruments take into account changes in counterparty credit risk, along with the Group's own credit risk. VINCI's risk management policy includes setting strict limits on the basis of counterparties' ratings.

The details of the main financing transactions (nominal and carrying amounts) concerned by these reforms are presented in the table under Note J.25 in the 2022 Universal Registration Document.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

25. Book and fair value of financial instruments by accounting category

The method of measuring the fair value of financial assets and liabilities was not altered in the first half of 2023.

The following table shows the carrying amount and fair value of financial assets and liabilities in the balance sheet by accounting category as defined in IFRS 9.

30/06/2023	Accounting categories							Fair value
	Derivatives at fair value through profit or loss	Derivatives designated as hedges	Financial assets measured at fair value through profit or loss	Financial assets measured at fair value through other comprehensive income	Financial assets at amortised cost	Financial liabilities at amortised cost	Total net book value	Level 1: quoted prices and cash	Level 2: internal model using observable factors	Level 3: internal model using non-observable factors	Fair value of the class
Balance sheet headings and classes of instrument
Equity instruments			1,282	11			1,292	1,042 (1)		250	1,292
Financial assets at amortised cost and PPP financial receivables					1,528		1,528		1,528		1,528
I - Non-current financial assets (14)	-	-	1,282	11	1,528	-	2,820	1,042	1,528	250	2,820
II - Derivative financial instruments - assets	51	267					318		318		318
Cash management financial assets			244				244	-	244		244
Financial current accounts - assets					154		154	154			154
Cash equivalents			4,012				4,012	1,517	2,494 (14)		4,012
Cash			6,748				6,748	6,748			6,748
III - Current financial assets	-	-	11,004	-	154	-	11,158	8,420	2,738	-	11,158
Total assets	51	267	12,286	11	1,682	-	14,297	9,462	4,584	250	14,297

Bonds						(22,418)	(22,418)	(20,374)	(1,155)		(21,529)
Other bank loans and other financial debt						(4,437)	(4,437)	-	(4,478)		(4,478)
IV - Long-term financial debt	-	-	-	-	-	(26,854)	(26,854)	(20,374)	(5,633)	-	(26,007)
V - Derivative financial instruments - liabilities	(451)	(1,864)					(2,315)		(2,315)		(2,315)
Other current financial liabilities						(2,354)	(2,354)		(2,354)		(2,354)
Financial current accounts - liabilities						(117)	(117)	(117)			(117)
Bank overdrafts						(724)	(724)	(724)			(724)
VI - Current financial liabilities	-	-	-	-	-	(3,195)	(3,195)	(841)	(2,354)	-	(3,195)
Total liabilities	(451)	(1,864)	-	-	-	(30,049)	(32,364)	(21,215)	(10,302)	-	(31,517)

(1) Fair value of Groupe ADP shares – see Note E.11, "Other non-current financial assets".
(2) See Notes E.11, "Other non-current financial assets" and F.13, "PPP financial receivables [controlled companies]".
(3) Mainly comprising certificates of deposit, term deposits and interest-bearing accounts.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

The table below shows the carrying amount and fair value of financial assets and liabilities as reported at 31 December 2022 by accounting category, as defined by IFRS 9:

31/12/2022	Accounting categories							Fair value
	Derivatives at fair value through profit or loss	Derivatives designated as hedges	Financial assets measured at fair value through profit or loss	Financial assets measured at fair value through other comprehensive income	Financial assets at amortised cost	Financial liabilities at amortised cost	Total net book value	Level 1: quoted prices and cash	Level 2: internal model using observable factors	Level 3: internal model using non-observable factors	Fair value of the class
Balance sheet headings and classes of instrument
Equity instruments			1,187	10			1,197	992 (*)		205	1,197
Financial assets at amortised cost and PPP financial receivables					1,403		1,403		1,403		1,403
I - Non-current financial assets (**)	-	-	1,187	10	1,403	-	2,599	992	1,403	205	2,599
II - Derivative financial instruments - assets	35	463					498		498		498
Cash management financial assets			503				503	-	503		503
Financial current accounts - assets			-		252		252	252			252
Cash equivalents			4,227				4,227	1,327	2,900 (**)		4,227
Cash			8,351				8,351	8,351			8,351
III - Current financial assets	-	-	13,081	-	252	-	13,333	9,930	3,403	-	13,333
Total assets	35	463	14,268	10	1,654	-	16,430	10,922	5,303	205	16,430
Bonds						(21,683)	(21,683)	(19,738)	(1,187)		(20,924)
Other bank loans and other financial debt						(4,208)	(4,208)	-	(4,245)		(4,245)
IV - Long-term financial debt	-	-	-	-	-	(25,891)	(25,891)	(19,738)	(5,432)	-	(25,169)
V - Derivative financial instruments - liabilities	(409)	(1,984)					(2,393)		(2,393)		(2,393)
Other current financial liabilities						(2,923)	(2,923)		(2,923)		(2,923)
Financial current accounts - liabilities						(99)	(99)	(99)			(99)
Bank overdrafts						(1,083)	(1,083)	(1,083)			(1,083)
VI - Current financial liabilities	-	-	-	-	-	(4,106)	(4,106)	(1,183)	(2,923)	-	(4,106)
Total liabilities	(409)	(1,984)	-	-	-	(29,997)	(32,391)	(20,920)	(10,749)	-	(31,669)

() Fair value of Groupe ADP shares – see Note E.11, "Other non-current financial assets".
() See Notes E.11, "Other non-current financial assets" and F.13, "PPP financial receivables (controlled companies)".
(**) Mainly comprising certificates of deposit, term deposits and interest-bearing accounts.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

J. Employee benefits and share-based payments

26. Provisions for employee benefits

26.1 Provisions for retirement benefit obligations

At 30 June 2023, provisions for retirement benefit obligations amounted to €1,042 million (including €992 million at more than one year), compared with €1,117 million at 31 December 2022 (including €1,064 million at more than one year). They comprise provisions for lump sums on retirement and provisions for obligations for supplementary retirement benefits. The decrease in the first half of 2023 arose from the increase in discount rates seen in all currency zones concerned during the period.

The part at less than one year of these provisions (€50 million at 30 June 2023 and €53 million at 31 December 2022) is reported under "Other current liabilities".

The expense recognised for the first half of 2023 in respect of retirement benefit obligations is half the forecast expense for 2023 determined on the basis of actuarial assumptions at 31 December 2022 and in accordance with IAS 19.

Details of benefits enjoyed by Group employees are provided in Note K.29.1, "Provisions for retirement benefit obligations" in the 2022 Universal Registration Document.

26.2 Other employee benefits

Provisions for other employee benefits mainly include long-service bonuses and jubilee bonuses. At 30 June 2023, those provisions amounted to €99 million (€98 million at 31 December 2022).

27. Share-based payments

The expense relating to employee benefits was €260 million in the first half of 2023 (€138 million in the first half of 2022), including €87 million in respect of performance share plans (€80 million in the first half of 2022), and €173 million in respect of employee savings plans in France and other countries (€58 million in the first half of 2022).

The features of the various plans in progress are described below.

27.1 Performance shares

Information on changes in performance share plans currently in force

	30/06/2023	31/12/2022
Number of shares granted subject to performance conditions at beginning of period	7,178,209	7,173,432
Shares granted	2,590,167	2,489,710
Shares vested	(2,070,025)	(1,826,223)
Shares cancelled	(324,664)	(658,710)
Number of shares granted subject to performance conditions not vested at end of period	7,373,687	7,178,209

Information on the features of the performance share plans currently in force

	Plan set up on 13/04/2023	Plan set up on 12/04/2022	Plan set up on 08/04/2021	Plan set up on 09/04/2020
Original number of beneficiaries	4,390	4,114	3,960	3,529
Vesting date of the shares granted	13/04/2026	12/04/2025	08/04/2024	09/04/2023
Number of shares initially granted subject to performance conditions (*)	2,590,167	2,489,710	2,489,680	2,365,032
Shares cancelled	(17,190)	(60,110)	(115,095)	(410,942)
Shares vested	-	(750)	(2,725)	(1,954,090)
Number of shares granted subject to performance conditions at end of period	2,572,977	2,428,850	2,371,860	-

(*) This includes shares granted to the Chief Executive Officer under a plan set up in accordance with ordinary law and subject to the same performance conditions.

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

On 8 February 2023, VINCI's Board of Directors decided to change the weighting of the external economic criterion in the 9 April 2020 plan from 20% to 10%, and to increase the weighting of the environmental criterion by 10 percentage points. It also decided that 90% of the performance shares initially granted under the 2020 plan (i.e. 1,925,068 shares) would vest for beneficiaries having remained with the Group (i.e. 3,132 employees). That percentage reflects the fact that the external economic performance criterion was not fulfilled: the difference between VINCI's total shareholder return (TSR) calculated between 1 January 2020 and 31 December 2022 (+2%) and that of the CAC 40 over the same period (+17%) was negative by 15 points, and so no shares vested in respect of this criterion. The internal economic performance criterion and the external environmental criterion (65% and 25% weightings respectively) were 100% fulfilled.

On 13 April 2023, VINCI's Board of Directors decided to set up a new performance share plan involving a conditional grant of 2,590,167 shares to 4,390 employees. These shares will not vest until a three-year period has elapsed, subject to beneficiaries being employed by the Group until the end of the vesting period and to the fulfilment of the following performance conditions:

An economic criterion (50% weighting) relating to value creation. This is measured by the ratio of the return on capital employed (ROCE, determined after deconsolidation of the airports business until global air passenger numbers have returned to 2019 levels over a full year according to IATA figures), calculated as an average over a three-year period, to the weighted average cost of capital (WACC), also calculated as an average over a three-year period. The vesting percentage will vary between 0% if the ratio is 1.0x or lower and 100% if the ratio is 1.25x or higher, with linear interpolation between the two limits of this range.
Financial criteria (25% weighting) including:

a) Relative stock market performance (12.5%), measuring VINCI's share price performance by comparison with a composite industry index, calculated on the basis of the stock market valuations of a list of companies operating in comparable business sectors. This relative performance corresponds to the difference, ascertained at 31 December 2025, between the following two indicators:

the total shareholder return (TSR) for the VINCI share between 1 January 2023 and 31 December 2025;
the TSR for the composite industry index between 1 January 2023 and 31 December 2025.

Total shareholder returns include dividends.

The vesting percentage will vary between 0% if the difference is negative by 5 points or more and 100% if the difference is positive by 5 points or more, with linear interpolation between the two limits of this range.

b) The Group's ability to manage its debt and generate cash flows in line with its level of debt. This will be measured by the FFO (funds from operations)/net debt ratio, determined according to the methodology of rating agency Standard & Poor's and calculated as an average over a three-year period. The vesting percentage will vary between 0% if the ratio is 15% or lower and 100% if the ratio is 20% or higher, with linear interpolation between the two limits of this range.

Environmental, social and governance criteria (25% weighting) comprising:

a) an external environmental criterion (15% weighting) measured by the Climate Change score received each year by VINCI from CDP Worldwide in respect of the 2023, 2024 and 2025 financial years;
b) a safety criterion (5% weighting) measuring the Group's safety performance, based on the frequency rate of workplace accidents with at least 24 hours of lost time per million hours worked for VINCI employees worldwide;
c) a criterion relating to increasing female representation (5% weighting) measuring the increase in the percentage of women hired or promoted to management positions across the Group's whole scope.

The Board may adjust these performance conditions either in the event of a strategic decision that changes the scope of the Group's business activities or under exceptional circumstances.

Fair value of the performance share plans

The fair value of the performance shares has been calculated by an external actuary at the respective grant dates of the shares on the basis of the following characteristics and assumptions:

	2023 plan	2022 plan	2021 plan	2020 plan
VINCI share price on date plan was announced (in €)	109.20	90.91	90.70	76.50
Fair value per performance share at grant date (in €)	92.89	76.85	78.64	61.69
Fair value compared with share price at grant date	85.06%	84.53%	86.70%	80.64%
Original maturity (in years) – vesting period	3 years	3 years	3 years	3 years
Risk-free interest rate (*)	2.79%	0.52%	(0.64%)	(0.44%)

(*) Three-year government bond yield in the eurozone.

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

27.2 Group savings plans

VINCI's Board of Directors defines the conditions for subscribing to Group savings plans in accordance with the authorisations given to it by shareholders at the Shareholders' General Meeting.

Group savings plan – France

In France, VINCI generally issues new shares reserved for employees three times a year (in January, April and October) at a subscription price that includes a 5% discount against the average stock market price over the 20 trading days preceding the Board of Directors meeting that set the subscription price.

Subscribers also benefit from an employer contribution with an annual maximum of €3,500 per person. The subscription period for each capital increase is around four months. The shares subscribed with the employer contribution are subject to a five-year lock-up period.

At 30 June 2023, given ongoing discussions by accounting standard-setters about whether the non-transferable nature of shares subscribed by employees and purchased through the employer contribution should be reflected in the valuation of the benefit granted, the Group adopted new criteria for measuring the expense, placing itself in the position of a market participant. These criteria may be adjusted in the second half of 2023.

Group savings plan – International

In the first half of 2023, in accordance with authorisations given to the Board of Directors by shareholders at the Shareholders' General Meeting, VINCI initiated new savings plans for the employees of certain foreign subsidiaries (Castor International savings plans). The plans currently cover 46 countries, representing 94% of Group revenue and 88% of the Group's workforce outside France.

The main characteristics of these plans are as follows:

subscription period: from 15 May to 2 June 2023 for all countries except the United Kingdom, where there are seven successive subscription periods between March and September 2023;
employer contribution consisting of bonus shares, with delivery deferred for three years where possible, or with immediate delivery but a three-year vesting period;
no lock-up period beyond the three-year vesting period for bonus shares.

Castor International plans (excluding the UK)	2023	2022	2021	2020
Subscription price (in €)	109.73	91.71	91.72	73.41
Closing share price on the last day of the subscription period (in €)	107.58	90.14	93.45	90.32
Anticipated dividend pay-out rate	4.01%	4.06%	2.97%	2.51%
Fair value of bonus shares on the last day of the subscription period (in €)	95.37	79.81	85.47	83.78

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

K. Other notes

28. Related party transactions

The Group's transactions with related parties mainly concern:

remuneration and similar benefits paid to members of the governing and management bodies;
transactions with companies over which VINCI exercises significant influence or joint ventures over which VINCI has joint control.

Transactions with related parties are undertaken at market prices.

There was no material change in the first half of 2023 in the nature of transactions conducted by the Group with its related parties from those at 31 December 2022, which were referred to in Note E.10.3, "Controlled subsidiaries' transactions with associates and joint ventures", and Note L.31, "Related party transactions", in the 2022 Universal Registration Document.

29. Note on litigation

The companies comprising the VINCI Group are sometimes involved in litigation arising from their activities. The related risks are assessed by VINCI and the subsidiaries involved on the basis of their knowledge of the cases, and provisions are taken in consequence as appropriate.

The main legal, administrative or arbitration proceedings that were in progress on or had ended by 30 June 2023 were as follows:

In a judgment handed down on 17 December 2013, the Paris Regional Court declared time-barred and inadmissible a claim by Région Île-de-France (the regional authority for the Greater Paris area) for compensation for the harm it purportedly suffered because of the anti-competitive practices penalised by the Conseil de la Concurrence (1) on 9 May 2007 in relation to the programme to refurbish schools in the Paris region between 1989 and 1996. After that judgment, on 16 November 2015, the tribunal des conflits (jurisdiction court) declared the ordinary courts not competent to decide the dispute between the regional authority and various construction companies. In 2017, the regional authority made 88 applications to the Paris Administrative Court relating to an equal number of school refurbishment contracts, claiming €293 million of damages from 14 companies – including several Group companies – and 11 individuals. In late July 2019, the Paris Administrative Court dismissed Région Île-de-France's claims. The regional authority is appealing against those 88 decisions. On 19 February 2021, in its judgments in two of the 88 sets of proceedings, the Paris Administrative Court of Appeal took the view that Région Île-de-France's action was not time-barred, that the regional authority would therefore have grounds to ask the court to find the defendants jointly and severally liable, but that its wrongdoing reduced the defendants' liability by a third, and ordered an expert opinion to determine any harm suffered by Région Île-de-France. The defendants lodged an appeal on points of law against these two judgments before the Conseil d'État, with the other 86 sets of proceedings remaining adjourned. In two judgments dated 9 and 17 May 2023, the Conseil d'État dismissed these appeals. The expert opinion is currently in progress. The Group takes the view that these proceedings represent a contingent liability whose impact it is currently unable to measure.
In August 2019, after the French government notified its intention to terminate early the concession contract relating to the Notre-Dame-des-Landes, Nantes Atlantique and Saint-Nazaire Montoir airports, Aéroports du Grand Ouest (AGO) twice sought to commence the conciliation procedure provided for in Article 94 of the concession contract. The government refused to comply and, through an order dated 24 October 2019, declared that the concession contract had been terminated for public interest reasons. On 5 December 2019, to safeguard its right to compensation, AGO sent to the government an initial compensation request and, on 6 December 2019, it filed an application to the Nantes Administrative Court to challenge the termination order. In its application, AGO reiterated that it was prepared to commence, as an alternative, a mediation procedure under Article L.213-7 of the French Code of Administrative Justice, to try to reach a balanced agreement that would resolve the dispute. On 3 June 2021, AGO received the government's defence, sent by the Nantes Administrative Court. On 30 June 2021, the President of the Nantes Administrative Court proposed a mediation procedure to the parties, pursuant to Article L.213-7 of the French Code of Administrative Justice. AGO accepted this proposed mediation, but the latter was not able to take place due to the government's refusal to implement the procedure. The dispute is therefore still ongoing before the Nantes Administrative Court. As the matter currently stands, the Group is not able to assess the impact of this situation.

(1) Now known as the Autorité de la Concurrence.

Interim financial report at 30 June 2023 – VINCI

Condensed consolidated interim financial statements

The Czech Republic's roads and motorways department (RSD) has made several claims against Eurovia CS, a Eurovia subsidiary based in the Czech Republic, as well as other non-Group companies. These claims concern works carried out between 2003 and 2007 in building the D47 motorway. Since late 2012, the RSD has brought several arbitration and legal proceedings mainly to seek damages for what the RSD alleges was defective work affecting the roads and engineering structures that were built as well as additional compensation for various other losses. Repairs have been carried out since the start of 2014, costing substantially less than the amount sought by the RSD. A partial arbitration decision was handed down in June 2021. The corresponding works were completed in 2022 for amounts that are also considerably lower than those sought by the RSD. An arbitration decision is pending for two other motorway sections and civil proceedings have been brought in relation to a fourth section. Regarding the claims relating mainly to defective work and covered by the proceedings already under way, the RSD is claiming damages of 2.6 billion Czech koruna, of which Eurovia CS's share would be around 85%. In view of its current status and its latest developments, the Group considers that this dispute will not have a material effect on its financial situation.
On 6 November 2019, the Metropolitan Municipality of Lima (Peru) commenced arbitration proceedings against Lima Express, the concession holder of the Línea Amarilla motorway, before the International Arbitration Chamber of Paris. The Metropolitan Municipality of Lima's main claim, as concession grantor, relates to the termination of the 12 November 2009 concession contract and to the series of amendments to that contract. Lima Express is contesting the Metropolitan Municipality of Lima's claims based on allegations of bribery prior to the Group's acquisition of Lima Express in 2016, and has filed a counterclaim. In addition, in proceedings against a former public official of the Metropolitan Municipality of Lima, Lima Express was ordered at first instance to pay civil compensation amounting to around 25 million Peruvian sols. In two other sets of criminal proceedings currently taking place against an ex-mayor of Lima, the public prosecutors have requested that Lima Express's civil liability be invoked. Lima Express is disputing these requests in each set of proceedings. The Group takes the view that these proceedings represent a contingent liability whose impact it is unable to measure.
On 12 May 2015, VINCI Construction Grands Projets formed a non-incorporated joint venture with Italian company Astaldi. The entity was created for the purpose of carrying out construction works on the new Santiago airport in Chile under an engineering, procurement and construction contract formed on 18 November 2015 with the concession holder Sociedad Concesionaria Nuevo Pudahuel. VINCI Construction Grands Projets and Astaldi have equal interests in the joint venture. A dispute has arisen between VINCI Construction Grands Projets and Astaldi regarding (i) allegations of mismanagement made by Astaldi against VINCI Construction Grands Projets, which VINCI Construction Grands Projets rejects entirely, and (ii) VINCI Construction Grands Projets' exclusion of Astaldi from the joint venture's governance because of misconduct by Astaldi, which is disputed by Astaldi. Astaldi commenced arbitration proceedings against VINCI Construction Grands Projets on 14 December 2020 before the International Chamber of Commerce. In a letter dated 28 December 2020, Astaldi stated that the amount it was claiming was around €150 million. VINCI Construction Grands Projets entirely disputes the compensation sought by Astaldi and has made a counterclaim aimed at (i) forcing Astaldi to pay its share of the loss suffered by the consortium at the time of its exclusion and (ii) forcing Astaldi to reimburse its share of the calls for funds made during the works, which total €59.6 million. An initial arbitral tribunal, the seat of which is in Geneva, was constituted on 14 June 2021. Subsequently, following Astaldi's acquisition by Webuild, on 25 November 2021 VINCI Construction Grands Projets commenced new arbitration proceedings against Webuild, without abandoning its counterclaim against Astaldi. VINCI Construction Grands Projets' view is that since the date of the aforementioned acquisition (1 August 2021), Webuild has been liable for the compensation it is claiming from Astaldi in relation to the airport construction work. This is disputed by Webuild. Subsequently, on 11 March 2022, the International Chamber of Commerce's International Court of Arbitration joined the two existing sets of proceedings into a new set of proceedings. The arbitral tribunal then resigned and on 3 June 2022 the same International Court of Arbitration, noting that the parties had not agreed on the appointment of new arbitrators, appointed them itself in order to form a new arbitral tribunal, which has since been in charge of the new tripartite proceedings. As part of those proceedings, VINCI Construction Grands Projets has filed its submissions in support of its claim against Webuild and Astaldi, seeking an award forcing them to (i) pay their share of the loss suffered by the consortium at the time of Astaldi's exclusion and (ii) reimburse their share of the calls for funds made during the works, which total €59.6 million. These tripartite proceedings remain ongoing. In view of the current situation, the Group considers that this dispute will not have a material effect on its financial situation.
On 23 June 2022, the Autorité de la Concurrence sent a statement of objections to Nuvia Process as principal, and to Soletanche Freyssinet and VINCI (as parent companies) relating to practices prohibited by Article L420-1 of the French Commercial Code regarding engineering, maintenance, decommissioning and waste processing services in relation to nuclear facilities and concerning several contracts awarded by the CEA (the French alternative and atomic energy commission) for its Marcoule site. These proceedings remain ongoing. The Group takes the view that these proceedings represent a contingent liability whose impact it is unable to measure.

There are no other judicial, administrative or arbitration proceedings, including any proceedings known to the Company, pending or with which it is threatened, that are likely to have, or have had in the last 12 months, a material effect on the financial situation or profitability of the Company and/or Group.

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

30. Post-balance sheet events

New private placement

On 10 July 2023, VINCI SA carried out a €100 million tap issue, by way of a private placement, of bonds originally issued in October 2022 and due to mature in October 2032.

Interim dividend

On 27 July 2023, the Board of Directors approved the payment of an interim dividend in respect of 2023 of €1.05 per share. It will be paid on 16 November 2023 (ex-date: 14 November 2023).

Interim financial report at 30 June 2023 – VINCI

Condensed consolidated interim financial statements

L. Other consolidation rules and methods

Intercompany transactions

Reciprocal operations and transactions relating to assets, liabilities, income and expenses between companies that are fully consolidated are eliminated in the consolidated financial statements.

Where a fully consolidated Group entity carries out a transaction with a joint venture or associate that is accounted for under the equity method, income and losses resulting from the transaction are only recognised in the Group's consolidated financial statements to the extent of the interest owned by third parties in the joint venture or associate.

Translation of the financial statements of foreign companies and establishments

In most cases, the functional currency of companies and establishments is their local currency.

The financial statements of foreign companies of which the functional currency is different from that used in preparing the Group's consolidated financial statements are translated at the closing rate for balance sheet items and at the average rate for the period for income statement items. Any resulting translation differences are recognised under other comprehensive income. Goodwill relating to foreign entities forms part of the assets acquired and is therefore denominated in the company's functional currency and translated at the exchange rate in force at the balance sheet date.

Foreign currency transactions

Transactions in foreign currency are translated into euros at the exchange rate at the transaction date.

Monetary assets and liabilities denominated in foreign currencies are translated at the closing rate. Foreign exchange gains and losses are recognised in income.

Foreign exchange gains and losses arising on loans denominated in foreign currency or on exchange rate derivatives qualifying as hedges of net investments in foreign subsidiaries are recorded under currency translation differences in equity.

Business combinations

Under IFRS 3, the cost of a business combination is the fair value, at the date of exchange, of the assets given, liabilities assumed, and/or equity instruments issued by the acquirer in exchange for control of the acquiree. Contingent price adjustments are included in the cost of the business combination and are measured at fair value at each balance sheet date. From the acquisition date, any subsequent changes to this fair value resulting from events after control was acquired are recognised in profit or loss.

Expenses that are directly attributable to the acquisition, such as professional fees for due diligence and other related fees, are expensed as they are incurred. They are presented in the "Impact of changes in scope and gain/(loss) on disposals of shares" item of the income statement.

Non-controlling interests in the acquiree, where they give their holders present ownership interests in the entity (voting rights, a share of earnings, etc.) and entitle them to a proportionate share of net assets in the event of liquidation, are measured either at their share of the acquiree's net identifiable assets, or at their fair value. This option is applied on a case-by-case basis for each acquisition.

At the date of acquisition of control, the cost of acquisition is allocated by recognising the identifiable assets acquired and liabilities assumed from the acquiree at their fair value at that date, except for tax assets and liabilities and employee benefits, which are measured according to their reference standard (IAS 12 and IAS 19 respectively) and asset groups classified as held for sale, which are recognised under IFRS 5 at their fair value less costs to sell. The positive difference between the cost of acquisition and the fair value of the identifiable assets and liabilities of the acquiree constitutes goodwill. Where applicable, goodwill can include a portion of the fair value of non-controlling interests if the full goodwill method has been selected.

The Group has 12 months from the date of acquisition to finalise the accounting for business combinations.

In the case of a business combination achieved in stages, previously acquired shareholdings in the acquiree are measured at fair value at the date of acquisition of control. Any resulting gain or loss is recognised in profit or loss.

Transactions between shareholders, acquisitions and disposals of non-controlling interests after acquisition of control

In accordance with IFRS 10, acquisitions or disposals of non-controlling interests, with no impact on control, are considered as transactions with the Group's shareholders. The difference between the consideration paid to increase the percentage shareholding in an already-controlled entity and the supplementary share of equity thus acquired is recorded under equity attributable to owners of the parent. Similarly, a decrease in the Group's percentage interest in an entity that continues to be controlled is booked in the accounts as a transaction between shareholders, with no impact on profit or loss. Professional fees and other costs relating to acquisitions and disposals of non-controlling interests that have no impact on control, and any associated tax effects, are recorded under equity. Cash flows related to transactions between shareholders are presented under cash flow (used in)/from financing activities in the consolidated cash flow statement.

Put options granted to non-controlling shareholders

Put options (options to sell) granted to the non-controlling shareholders of certain Group subsidiaries are recognised under other non-current liabilities for the present value of the exercise price of the option and as a corresponding reduction of consolidated equity (non-controlling interest and equity attributable to equity holders of the parent for the surplus, if any).

VINCI - Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

Assets held for sale and discontinued operations

Assets held for sale

Non-current assets (or groups of assets) are classified as held for sale and recognised at the lower of their carrying amount and their fair value less costs to sell if their carrying amount will be recovered principally through a sale transaction instead of through continuing use.

Non-current assets (including those forming part of a group held for sale) classified as held for sale are not depreciated or amortised.

Discontinued operations

Discontinued operations, whether halted, disposed of or classified as held for sale, and provided they:

represent a business line or a geographical area of business that is material for the Group,
form part of a single disposal plan relating to a business line or a geographical area of business that is material for the Group, or
correspond to a subsidiary acquired exclusively for resale,
are shown on a separate line of the consolidated income statement and the consolidated cash flow statement at the balance sheet date.

The Group assesses their materiality using various criteria, both qualitative (market, product, geographical area) and quantitative (revenue, profitability, cash flow, assets). Assets connected with discontinued operations, if held for sale, are measured at the lower of their carrying amount and fair value less costs to sell.

Interim financial report at 30 June 2023 – VINCI

Condensed consolidated interim financial statements

Report of the Statutory Auditors on the 2023 interim financial information

VINCI – Interim financial report at 30 June 2023
69

Condensed consolidated interim financial statements

Report of the Statutory Auditors on the 2023 interim financial information

Period from 1 January 2023 to 30 June 2023

To the Shareholders,

In accordance with our appointment as Statutory Auditors by the shareholders at the Shareholders' General Meeting and with the requirements of Article L.451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:

the review of the accompanying condensed consolidated interim financial statements of VINCI for the period from 1 January 2023 to 30 June 2023,
the verification of the information presented in the management report for the first half.

The condensed consolidated interim financial statements were prepared under the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our limited review.

I – Conclusion on the financial statements

We conducted our review in accordance with professional standards applicable in France.

A review of interim financial information consists of making inquiries, primarily of persons responsible for accounting and financial matters, and applying analytical and other review procedures. A review is substantially smaller in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with IAS 34 – the standard of the IFRSs as adopted by the European Union applicable to interim financial information.

II – Specific verification

We have also verified the information presented in the management report for the first half on the condensed consolidated interim financial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the condensed consolidated interim financial statements.

Neuilly-sur-Seine and Paris-La Défense, 28 July 2023

The Statutory Auditors

French original signed by

PricewaterhouseCoopers Audit

Deloitte et Associés

Bertrand Baloche

Jean-Romain Bardoz

Marc de Villartay

Amnon Bendavid

Interim financial report at 30 June 2023 – VINCI

Condensed consolidated interim financial statements

Statement by the person responsible for the half-year financial report

VINCI – Interim financial report at 30 June 2023
71

Condensed consolidated interim financial statements

Statement by the person responsible for the half-year financial report

"I certify that, to the best of my knowledge, the condensed half-year financial statements presented in the half-year financial report have been prepared in accordance with the applicable financial reporting standards and give a true and fair view of the assets and liabilities, financial position and results of the operations of the Company and of the Group formed by the companies included in the consolidated financial statements, and that the management report for the half-year period (featuring on pages 1 to 12) faithfully presents the important events that have occurred during the first six months of the financial year, their impact on the half-year financial statements, the main transactions between related parties and a description of the main risks and uncertainties in respect of the remaining six months of the financial year."

Xavier Huillard
Chairman and Chief Executive Officer

Interim financial report at 30 June 2023 - VINCI

Condensed consolidated interim financial statements

Glossary

Cash flows from operations before tax and financing costs (Ebitda): Ebitda corresponds to recurring operating income adjusted for additions to depreciation and amortisation, changes in non-current provisions and non-current asset impairment, gains and losses on asset disposals. It also includes restructuring charges included in non-recurring operating items.

Concession subsidiaries' revenue from works done by non-Group companies: this indicator relates to construction work done by concession companies as programme manager on behalf of concession grantors. Consideration for that work is recognised as an intangible asset or financial asset depending on the accounting model applied to the concession contract, in accordance with IFRIC 12 "Service Concession Arrangements". It excludes work done by VINCI Energies and VINCI Construction business lines.

Cost of net financial debt: the cost of net financial debt comprises all financial income and expense relating to net financial debt as defined below. It therefore includes interest expense and income from interest rate derivatives allocated to gross debt, along with financial income from investments and cash equivalents. The reconciliation between this indicator and the income statement is detailed in the notes to the Group's consolidated financial statements.

Ebitda margin, Ebit margin and recurring operating margin: ratios of Ebitda, Ebit, or recurring operating income to revenue excluding concession subsidiaries' revenue from works done by non-Group companies.

Free cash flow: free cash flow is made up of operating cash flow and growth investments in concessions and public-private partnerships (PPPs).

Like-for-like revenue growth: this indicator measures the change in revenue at constant scope and exchange rates.

Constant scope: the scope effect is neutralised as follows.

For revenue in year N, revenue from companies that joined the Group in year N is deducted.
For revenue in year N-1, the full-year revenue of companies that joined the Group in year N-1 is included, and revenue from companies that left the Group in years N-1 and N is excluded.

Constant exchange rates: the currency effect is neutralised by applying exchange rates in year N to foreign currency revenue in year N-1.

Net financial surplus/debt: this corresponds to the difference between financial assets and financial debt.

If the assets outweigh the liabilities, the balance represents a net financial surplus, and if the liabilities outweigh the assets, the balance represents net financial debt. Financial debt includes bonds and other borrowings and financial debt (including derivatives and other liabilities relating to hedging instruments). Financial assets include cash and cash equivalents and assets relating to derivative instruments.

Under IFRS 16, the Group recognises right-of-use assets relating to leased items under non-current assets, along with a liability corresponding to the present value of lease payments still to be made. That liability is not included in net financial surplus/debt as defined by the Group, and is presented directly on the balance sheet.

Non-recurring operating items: non-recurring income and expense mainly includes impairment losses on goodwill and other material assets, restructuring charges and income and expense relating to changes in scope (capital gains or losses on disposals of securities and the impact of changes in control).

Operating cash flow: operating cash flow is a measurement of cash flows generated by the Group's ordinary activities.

It is made up of Ebitda, the change in operating working capital requirement and current provisions, interest paid, income taxes paid, dividends received from companies accounted for under the equity method, operating investments net of disposals and repayments of lease liabilities and the associated financial expense. Operating cash flow does not include growth investments in concessions and PPPs.

Operating income: this indicator is included in the income statement. Operating income is calculated by taking recurring operating income and adding non-recurring income and expense (see below).

Operating income from ordinary activities (Ebit): this indicator is included in the income statement.

Ebit measures the operational performance of fully consolidated Group subsidiaries. It excludes share-based payment expense (IFRS 2), other recurring operating items (including the share of the income or loss of companies accounted for under the equity method) and non-recurring operating items.

Order book

In VINCI Energies, VINCI Construction and Cobra IS the order book represents the volume of business yet to be carried out on projects where the contract is in force (in particular after service orders have been obtained or after conditions precedent have been met) and financed.
At VINCI Immobilier, the order book corresponds to the revenue, recognised on a progress-towards-completion basis, that is yet to be generated on a given date with respect to property sales confirmed by a notarised deed or with respect to property development contracts on which the works order has been given by the project owner.

VINCI – Interim financial report at 30 June 2023

Condensed consolidated interim financial statements

Order intake

In VINCI Energies, VINCI Construction and Cobra IS, a new order is recorded when the contract has been not only signed but is also in force (for example, after the service order has been obtained or after conditions precedent have been met) and when the project's financing is in place. The amount recorded in order intake corresponds to the contractual revenue.
At VINCI Immobilier, order intake corresponds to the value of properties sold off-plan or sold after completion in accordance with a notarised deed, or revenue from property development contracts where the works order has been given by the project owner.

For joint property developments:

If VINCI Immobilier has sole control over the development company, it is fully consolidated. In that case, 100% of the contract value is included in order intake.
If the development company is jointly controlled, it is accounted for under the equity method and its order intake is not included in the total.

Public-private partnership – concessions and partnership contracts

Public-private partnerships are forms of long-term public sector contracts through which a public authority calls upon a private sector partner to design, build, finance, operate and maintain a facility or item of public infrastructure and/or manage a service.

In France, a distinction is drawn between concessions (for works or services) and partnership contracts.

Outside France, there are categories of public contracts – known by a variety of names – with characteristics similar to those of the French concession and partnership contracts.

In a concession, the concession holder receives a toll (or other form of remuneration) directly from users of the infrastructure or service, on terms defined in the contract with the public sector authority that granted the concession. The concession holder therefore bears "traffic level risk" related to the use of the infrastructure.

In a partnership contract, the private partner is paid by the public authority, the amount being tied to performance targets, regardless of the infrastructure's level of usage. The private partner therefore bears no traffic level risk.

Recurring operating income

This indicator is included in the income statement. Recurring operating income is intended to present the Group's operational performance excluding the impact of non-recurring transactions and events during the period. It is obtained by taking operating income from ordinary activities (Ebit) and adding the IFRS 2 expense associated with share-based payments (Group savings plans and performance share plans), the Group's share of the profit or loss of subsidiaries accounted for under the equity method, and other recurring operating income and expense. The latter category includes recurring income and expense relating to companies accounted for under the equity method and to non-consolidated companies (financial income from shareholder loans and advances granted by the Group to some of its subsidiaries, dividends received from non-consolidated companies, etc.).

VINCI Autoroutes motorway numbers: this is the number of kilometres travelled by light and heavy vehicles on the motorway network managed by VINCI Autoroutes during a given period.

VINCI Airports passenger numbers: this is the number of passengers who have travelled on commercial flights from or to a VINCI Airports airport during a given period, an appropriate metric for estimating both aeronautical and non-aeronautical revenue generated by an airport.

Interim financial report at 30 June 2023 – VINCI

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VINCI — Interim / Quarterly Report 2023

1752_ir_2023-07-28_9a6a9156-ee09-48cf-a074-951c6e3f21f4.pdf

HALF-YEAR FINANCIAL REPORT

Management report for the first half of 2023

Key figures

1. Highlights of the period

1.1 Main changes in scope

VINCI Concessions

VINCI Energies

1.2 Contract wins in the Energy and Construction businesses

VINCI Energies

Cobra IS

VINCI Construction

1.3 Financing activities

New financing

Debt repayments

Credit ratings

1.4 Other highlights

Partnership to develop hydrogen mobility

Decarbonising road transport

2. Revenue

Revenue by business line

CONCESSIONS: €4,998 million (up 20.1% actual and up 12.8% like-for-like compared with the first half of 2022)

VINCI Energies: €9,122 million (up 17.6% actual and up 13.0% like-for-like compared with the first half of 2022)

Cobra IS: €3,061 million (up 14.8% actual and up 14.4% like-for-like compared with the first half of 2022)

VINCI Construction: €14,914 million (up 10.9% actual and up 11.7% like-for-like compared with the first half of 2022)

VINCI Immobilier: €560 million (down 23% actual and like-for-like compared with the first half of 2022)

3. Results

3.1 Operating income from ordinary activities / operating income

3.2 Net income

4. Cash flow

5. Balance sheet and net financial debt

6. Order book

7. Post-balance sheet events and outlook

7.1 Post-balance sheet events

Grand Paris Express

Entry into service of the Belmonte solar farm in Brazil

Condensed consolidated interim financial statements at 30 June 2023

Consolidated interim financial statements 14

Notes to the consolidated interim financial statements 21

Consolidated interim financial statements

Consolidated comprehensive income statement for the period

Consolidated balance sheet

Consolidated balance sheet

Equity and liabilities

Notes to the consolidated interim financial statements

A. Key events and changes in consolidation scope

B. Accounting policies, consolidation methods, measurement methods and specific arrangements

C. Financial indicators by business line and geographical area

D. Main income statement items

E. Investments in other companies

F. Concessions: PPP contracts, concession contracts and other infrastructure

G. Other balance sheet items and business-related commitments

H. Equity

A. Key events and changes in consolidation scope

1. Key events

2. Changes in consolidation scope

VINCI Highways

Other acquisitions

Changes in consolidation scope in previous periods

Cobra IS

Acquisition of a 29.99% stake in Mexican airport operator OMA

Acquisition of most of Kontron AG's IT services business

Other acquisitions and transactions

B. Accounting policies, consolidation methods, measurement methods and specific arrangements

1. Accounting policies

New standards, amendments and interpretations applicable from 1 January 2023

New standards, amendments and interpretations adopted by the IASB but not yet applicable at 30 June 2023

French pension reforms

2. Consolidation methods

3. Measurement rules and methods

3.1 Use of estimates

3.2 Measurement of fair value

3.3 Specific measurement rules and methods applied by the Group in preparing the interim financial statements

Seasonal nature of the business

Estimation of the tax expense

Retirement benefit obligations

4. Specific arrangements

Climate risks

VINCI Interim / Quarterly Report 2023