Financial data

Key highlights

 

 

 

 

 

 

Actual1

Variance

€ million

2018

2017

Actual rates

CER2

1

Due to rounding, some financial data may not add up in the tables included in this management report.

2

CER: constant exchange rates

Revenue

4 632

4 530

2%

5%

Net sales

4 412

4 182

5%

8%

Royalty income and fees

92

108

-15%

-11%

Other revenue

128

240

-47%

-46%

Gross Profit

3 434

3 330

3%

6%

Marketing and selling expenses

-964

-940

3%

6%

Research and development expenses

-1 161

-1 057

10%

11%

General and administrative expenses

-180

-192

-6%

-5%

Other operating income/expenses (-)

-24

-11

>100%

>100%

Recurring EBIT (rEBIT)

1 105

1 130

-2%

1%

Non-recurring income/expenses (-)

4

-43

>-100%

>-100%

EBIT (operating profit)

1 109

1 087

2%

5%

Net financial expenses

-93

-99

-6%

-5%

Profit before income taxes

1 015

988

3%

6%

Income tax expenses

-200

-218

-8%

-5%

Profit from continuing operations

815

770

6%

9%

Profit/loss (-) from discontinued operations

8

1

>100%

>100%

Profit

823

771

7%

10%

Attributable to UCB shareholders

800

753

6%

10%

Attributable to non-controlling interests

23

18

26%

32%

Recurring EBITDA

1 398

1 375

2%

5%

Capital expenditure (including intangible assets)

341

209

63%

 

Net financial debt

237

525

-55%

 

Operating cash flow from continuing operations

1 098

896

23%

 

Weighted average number of shares – non-diluted (million)

188

188

0%

 

EPS (€ per weighted average number of shares – non-diluted)

4.24

4.00

6%

6%

Core EPS (€ per weighted average number of shares – non-diluted)

4.78

4.82

-1%

3%

Net sales by product

 

 

 

 

 

 

Actual

Variance

€ million

2018

2017

Actual rates

CER

Immunology

 

 

 

 

Cimzia®

1 446

1 424

2%

5%

Neurology

 

 

 

 

Vimpat®

1 099

976

13%

17%

Keppra® (including Keppra® XR/E Keppra®)

790

778

2%

5%

Neupro®

321

314

2%

4%

Briviact®

142

87

63%

70%

Established brands

 

 

 

 

Zyrtec® (including Zyrtec-D/Cirrus®)

101

103

-2%

2%

Xyzal®

90

104

-14%

-11%

Other products

323

368

-12%

-9%

Net sales before hedging

4 312

4 154

4%

8%

Designated hedges reclassified to net sales

100

28

>100%

 

Total net sales

4 412

4 182

5%

8%

 

 

 

 

 

Net sales by geographical area

 

 

 

 

 

 

 

 

Actual

Variance actual rates

Variance CER

€ million

2018

2017

€ million

%

€ million

%

Net sales U.S.

2 158

2 069

90

4%

192

9%

Cimzia®

896

918

-21

-2%

21

2%

Vimpat®

822

746

76

10%

115

15%

Keppra®

221

232

-11

-5%

0

0%

Briviact®

109

63

45

72%

51

80%

Neupro®

101

96

5

5%

9

10%

Established brands

 

 

 

 

 

 

Other

9

14

-5

-34%

-4

-31%

Net sales Europe

1 325

1 288

37

3%

42

3%

Cimzia®

400

370

29

8%

31

8%

Keppra®

216

235

-18

-8%

-18

-8%

Vimpat®

206

177

29

16%

30

17%

Neupro®

174

168

6

3%

6

4%

Briviact®

29

22

7

32%

7

33%

Established brands

 

 

 

 

 

 

Zyrtec®

55

52

4

7%

4

7%

Xyzal®

27

29

-1

-5%

-1

-5%

Other

218

235

-18

-7%

-17

-7%

Net sales international markets

829

798

31

4%

83

10%

Keppra® (including E Keppra®)

352

311

41

13%

59

19%

Cimzia®

150

136

13

10%

25

19%

Vimpat®

70

53

17

33%

22

42%

Neupro®

46

50

-3

-7%

-2

-4%

Briviact®

4

1

2

>100%

3

>100%

Established brands

 

 

 

 

 

 

Xyzal®

63

75

-13

-17%

-10

-13%

Zyrtec® (including Cirrus®)

46

51

-5

-10%

-1

-2%

Other

98

120

-22

-19%

-13

-10%

Net sales before hedging

4 312

4 154

158

4%

317

8%

Designated hedges reclassified to net sales

100

28

72

>100%

 

 

Total net sales

4 412

4 182

230

5%

330

8%

 

 

 

 

 

 

 

Royalty income and fees

 

 

 

 

 

 

Actual

Variance

€ million

2018

2017

Actual rates

CER

Biotechnology IP

56

59

-4%

0%

Zyrtec® U.S.

12

26

-56%

-53%

Toviaz®

19

19

1%

6%

Other

5

4

25%

27%

Royalty income and fees

92

108

-15%

-11%

 

 

 

 

 

Other revenue

 

 

 

 

 

 

Actual

Variance

€ million

2018

2017

Actual rates

CER

Contract manufacturing sales

83

91

-9%

-8%

Xyzal® in U.S.

0

56

-100%

-100%

Partnerships in Japan

8

30

-75%

-75%

Product profit sharing

11

16

-32%

-32%

Other

26

47

-44%

-43%

Other revenue

128

240

-47%

-46%

 

 

 

 

 

Gross profit

 

 

 

 

 

 

Actual

Variance

€ million

2018

2017

Actual rates

CER

Revenue

4 632

4 530

2%

5%

Net sales

4 412

4 182

5%

8%

Royalty income and fees

92

108

-15%

-11%

Other revenue

128

240

-47%

-46%

Cost of sales

-1 198

-1 200

0%

1%

Cost of sales products and services

-823

-848

-3%

-3%

Royalty expenses

-241

-227

6%

11%

Amortization of intangible assets linked to sales

-134

-125

8%

9%

Gross Profit

3 434

3 330

3%

6%

 

 

 

 

 

Recurring EBIT and recurring EBITDA

 

 

 

 

 

 

Actual

Variance

€ million

2018

2017

Actual rates

CER

Revenue

4 632

4 530

2%

5%

Net sales

4 412

4 182

5%

8%

Royalty income and fees

92

108

-15%

-11%

Other revenue

128

240

-47%

-46%

Gross Profit

3 434

3 330

3%

6%

Marketing and selling expenses

-964

-940

3%

6%

Research and development expenses

-1 161

-1 057

10%

11%

General and administrative expenses

-180

-192

-6%

-5%

Other operating income/expenses (-)

-24

-11

>100%

>100%

Total operating expenses

-2 329

-2 200

6%

8%

Recurring EBIT (rEBIT)

1 105

1 130

-2%

1%

Add: Amortization of intangible assets

170

160

6%

8%

Add: Depreciation charges

123

85

44%

47%

Recurring EBITDA (rEBITDA)

1 398

1 375

2%

5%

 

 

 

 

 

Net profit

 

 

 

 

 

 

Actual

Variance

€ million

2018

2017

Actual rates

CER

Recurring EBIT

1 105

1 130

-2%

1%

Impairment charges

0

-1

-74%

-69%

Restructuring expenses

-20

-23

-11%

-10%

Gain on disposals

47

3

>100%

>100%

Other non-recurring income/expenses (-)

-23

-22

6%

7%

Total non-recurring income/expenses (-)

4

-43

>-100%

>-100%

EBIT (operating profit)

1 109

1 087

2%

5%

Net financial expenses (-)

-93

-99

-6%

-5%

Result from associates

-1

0

N/A

N/A

Profit before income taxes

1 015

988

3%

6%

Income tax expenses

-200

-218

-8%

-5%

Profit from continuing operations

815

770

6%

9%

Profit/loss (-) from discontinued operations

8

1

>100%

>100%

Profit

823

771

7%

10%

Attributable to UCB shareholders

800

753

6%

10%

Attributable to non-controlling interests

23

18

26%

32%

Profit attributable to UCB shareholders

800

753

6%

10%

 

 

 

 

 

Core EPS

 

 

 

 

 

 

Actual

Variance

€ million

2018

2017

Actual rates

CER

Profit

823

771

7%

10%

Attributable to UCB shareholders

800

753

6%

10%

Attributable to non-controlling interests

23

18

26%

32%

Profit attributable to UCB shareholders

800

753

6%

10%

Total non-recurring income (-)/expenses

-4

43

>-100%

>-100%

Income tax on non-recurring expenses (-)/credit

7

12

-43%

-43%

Financial one-off income (-)/expenses

0

0

N/A

N/A

Income tax on financial one-off income/expenses (-)

0

0

N/A

N/A

Profit (-)/loss from discontinued operations

-8

-1

>100%

>100%

Amortization of intangibles linked to sales

134

125

8%

9%

Income tax on amortization of intangibles linked to sales

-28

-25

11%

11%

Core profit attributable to UCB shareholders

901

907

-1%

3%

Weighted average number of shares (million)

188

188

0%

 

Core EPS attributable to UCB shareholders (€)

4.78

4.82

-1%

3%

 

 

 

 

 

Consolidated income statement

For the year ended 31 December

 

 

 

€ million

Note

2018

2017

Continuing operations

 

 

 

Net Sales

5

4 412

4 182

Royalty income and fees

 

92

108

Other revenue

9

128

240

Revenue

 

4 632

4 530

Cost of sales

 

-1 198

-1 200

Gross profit

 

3 434

3 330

Marketing and selling expenses

 

-964

-940

Research and development expenses

 

-1 161

-1 057

General and administrative expenses

 

-180

-192

Other operating income/expenses (-)

12

-24

-11

Operating profit before impairment, restructuring and other income and expenses

 

1 105

1 130

Impairment of non-financial assets

13

0

-1

Restructuring expenses

14

-20

-23

Other income/expenses (-)

15

24

-19

Operating profit

 

1 109

1 087

Financial income

16

16

15

Financial expenses

16

-109

-114

Share of loss of associates

 

-1

0

Profit before income taxes

 

1 015

988

Income tax expense

17

-200

-218

Profit from continuing operations

 

815

770

Discontinued operations

 

 

 

Profit/loss (-) from discontinued operations

8

8

1

Profit

 

823

771

Attributable to:

 

 

 

Equity holders of UCB SA

 

800

753

Non-controlling interests

 

23

18

Basic earnings per share (€)

 

 

 

From continuing operations

40

4.20

3.99

From discontinued operations

40

0.04

0.01

Total basic earnings per share

 

4.24

4.00

Diluted earnings per share (€)

 

 

 

From continuing operations

40

4.20

3.99

From discontinued operations

40

0.04

0.01

Total diluted earnings per share

 

4.24

4.00

 

 

 

 

Consolidated statement of comprehensive income

For the year ended 31 December

 

 

 

€ million

Note

2018

2017

1

FVOCI: Fair value through other comprehensive income

Profit for the period

 

823

771

Other comprehensive income

 

 

 

Items to be reclassified to profit or loss in subsequent periods:

 

 

 

- Net gain/loss (-) on financial assets at FVOCI1

 

-35

-12

- Exchange differences on translation of foreign operations

 

65

-340

- Effective portion of gains/losses (-) on cash flow hedges

 

-194

157

- Income tax relating to the components of other comprehensive income to be reclassified to profit or loss in subsequent periods

 

53

-47

Items not to be reclassified to profit or loss in subsequent periods:

 

 

 

- Remeasurement of defined benefit obligation

32

12

27

- Income tax relating to the components of other comprehensive income not to be reclassified to profit or loss in subsequent periods

 

-3

-18

Other comprehensive income/loss (-) for the period, net of tax

 

-102

-233

Total comprehensive income for the period, net of tax

 

721

538

Attributable to:

 

 

 

Equity holders of UCB SA

 

699

508

Non-controlling interests

 

22

30

Total comprehensive income for the period, net of tax

 

721

538

Consolidated statement of financial position

 

 

 

 

€ million

Note

2018

2017

Assets

 

 

 

Non-current assets

 

 

 

Intangible assets

19

870

817

Goodwill

20

4 970

4 838

Property, plant and equipment

21

805

673

Deferred income tax assets

31

760

715

Financial and other assets (including derivative financial instruments)

22

159

197

Total non-current assets

 

7 564

7 240

Current assets

 

 

 

Inventories

23

647

597

Trade and other receivables

24

835

809

Income tax receivables

 

81

12

Financial and other assets (including derivative financial instruments)

22

105

194

Cash and cash equivalents

25

1 262

1 049

Assets of disposal group classified as held for sale

8.2

20

16

Total current assets

 

2 950

2 677

Total assets

 

10 514

9 917

Equity and liabilities

 

 

 

Equity

 

 

 

Capital and reserves attributable to UCB shareholders

26

6 310

5 813

Non-controlling interests

22.6

-55

-77

Total equity

 

6 255

5 736

Non-current liabilities

 

 

 

Borrowings

28

198

303

Bonds

29

1 152

1 231

Other financial liabilities (including derivative financial instruments)

30

32

57

Deferred income tax liabilities

31

39

53

Employee benefits

32

419

441

Provisions

33

155

121

Trade and other liabilities

34

26

26

Total non-current liabilities

 

2 021

2 232

Current liabilities

 

 

 

Borrowings

28

74

39

Bonds

29

75

0

Other financial liabilities (including derivative financial instruments)

30

133

53

Provisions

33

51

37

Trade and other liabilities

34

1 786

1 724

Income tax payables

35

119

96

Liabilities of disposal group classified as held for sale

8.2

0

0

Total current liabilities

 

2 238

1 949

Total liabilities

 

4 259

4 181

Total equity and liabilities

 

10 514

9 917

 

 

 

 

Consolidated statement of cash flows

For the year ended 31 December

 

 

 

€ million

Note

2018

2017

Profit for the year attributable to UCB shareholders

 

800

753

Non-controlling interests

 

24

18

Adjustment for profit (-)/loss from discontinued operations

8

-11

0

Adjustment for profit (-)/loss from associates

 

1

0

Adjustment for non-cash transactions

36

254

150

Adjustment for items to disclose separately under operating cash flow

36

202

218

Adjustment for items to disclose under investing and financing cash flows

36

2

35

Change in working capital

36

-35

-79

Interest received

16

20

16

Cash flow generated from operations

 

1 257

1 111

Tax paid during the period

 

-168

-184

Net cash flow used in (-)/generated by operating activities:

 

 

 

From continuing operations

 

1 098

896

From discontinued operations

 

-9

31

Net cash flow generated by operating activities

 

1 089

927

Acquisition of property, plant and equipment

21

-94

-100

Acquisition of intangible assets

19

-247

-109

Acquisition of subsidiaries, net of cash acquired

 

-13

-7

Acquisition of other investments

 

-21

-17

Sub-total acquisitions

 

-375

-233

Proceeds from sale of property, plant and equipment

 

1

0

Proceeds from sale of other activities, net of cash disposed

 

52

2

Proceeds from sale of other investments

 

2

3

Sub-total disposals

 

55

5

Net cash flow used in (-)/generated by investing activities:

 

 

 

From continuing operations

 

-320

-228

From discontinued operations

 

0

0

Net cash flow used in (-)/generated by investing activities

 

-320

-228

Proceeds from borrowings

28

8

19

Repayments of borrowings (-)

28

-177

-45

Payment of lease liabilities

28

-33

-1

Acquisition (-) of treasury shares

26

-51

-105

Dividend paid to UCB shareholders, net of dividend paid on own shares

26.2, 41

-222

-217

Interest paid

16

-63

-53

Net cash flow used in (-)/generated by financing activities:

 

 

 

From continuing operations

 

-538

-402

From discontinued operations

 

0

0

Net cash flow used in financing activities

 

-538

-402

Net increase/decrease (-) in cash and cash equivalents

 

231

297

From continuing operations

 

240

266

From discontinued operations

 

-9

31

Net cash and cash equivalents at the beginning of the period

 

1 022

756

Effect of exchange rate fluctuations

 

-16

-31

Net cash and cash equivalents at the end of the period

 

1 237

1 022

 

 

 

 

Consolidated statement of changes in equity

 

 

 

 

 

 

 

 

 

 

 

2018

Attributed to equity holders of UCB SA

 

 

€ million

Share capital and share premium

Treasury shares

Retained earnings

Other reserves

Cumulative translation adjustments

Financial assets at FVOCI1

Cash flow hedges

Total

Non-controlling interests

Total stock­holders’ equity

1

FVOCI: Fair value through other comprehensive income

Balance at 1 January 2018

2 614

-357

3 811

-155

-220

30

90

5 813

-77

5 736

Profit for the period

800

800

23

823

Other comprehensive income/loss (-)

9

66

-35

-141

-101

-1

-102

Total comprehensive income

800

9

66

-35

-141

699

22

721

Dividends (Note 41)

-222

-222

-222

Share-based payments (Note 27)

58

58

58

Transfer between reserves

53

-53

Treasury shares (Note 26)

-38

-38

-38

Other movements

Balance at 31 December 2018

2 614

-342

4 394

-146

-154

-5

-51

6 310

-55

6 255

 

 

 

 

 

 

 

 

 

 

 

2017

Attributed to equity holders of UCB SA

 

 

€ million

Share capital and share premium

Treasury shares

Retained earnings

Other reserves

Cumulative translation adjustments

Available for sale financial assets

Cash flow hedges

Total

Non-controlling interests

Total stock­holders’ equity

Balance at 1 January 2017

2 614

-283

3 263

-164

132

42

-20

5 584

-107

5 477

Profit for the period

753

753

18

771

Other comprehensive income/loss (-)

9

-352

-12

110

-245

12

-233

Total comprehensive income

753

9

-352

-12

110

508

30

538

Dividends (Note 41)

-217

-217

-217

Share-based payments (Note 27)

60

60

60

Transfer between reserves

45

-45

Treasury shares (Note 26)

-119

-119

-119

Other movements

-3

-3

-3

Balance at 31 December 2017

2 614

-357

3 811

-155

-220

30

90

5 813

-77

5 736