22 Financial and other assets

22.1 Non-current financial and other assets

 

 

 

€ million

2018

2017

Financial assets at FVOCI (refer below)

52

69

Investments in Associates

3

4

Cash deposits

9

8

Derivative financial instruments (Note 38)

38

45

Reimbursement rights with respect to German defined benefit plans

23

23

Other financial assets

34

48

Non-current financial and other assets

159

197

 

 

 

22.2 Current financial and other assets

 

 

 

€ million

2018

2017

Clinical trial materials

77

49

Financial assets at FVOCI (refer below)

17

14

Derivative financial instruments (Note 38)

11

131

Current financial and other assets

105

194

 

 

 

22.3 Financial assets at fair value through other comprehensive income (FVOCI)

The current and non-current financial assets at FVOCI comprise the following:

 

 

 

€ million

2018

2017

Equity securities

69

83

Debt securities

0

0

Financial assets at FVOCI

69

83

 

 

 

The movement in the carrying values of the financial assets at FVOCI is as follows:

 

 

 

 

 

 

2018

2017

€ million

Equity securities

Debt securities

Equity securities

Debt securities

At 1 January

83

0

64

3

Additions

23

0

31

0

Disposals

0

0

0

-3

Fair value losses going through OCI

-37

0

-12

0

At 31 December

69

0

83

0

 

 

 

 

 

For the financial assets that are valued at amortized cost, the carrying amount approximates the fair value.

The Group does not have any investments in debt instruments.

The equity securities mainly include investments in Dermira Inc., Heidelberg Pharma AG, Clementia Pharmaceuticals Inc., Ceribell Inc. and investments in UCB Ventures that have been classified as financial assets at FVOCI, these investments are measured at fair value. All fair value gains and losses are presented in OCI.

As at the end of 2018, UCB’s stakes in Dermira Inc., Heidelberg Pharma AG, Clementia Pharmaceuticals Inc. and Ceribell Inc. were 4.45%, 4.03%, 0.77% and 4.41% (2017: 4.45%, 5.04%, 0.92% and 0%) respectively. As UCB does not have significant influence in these companies, the equity investments are classified as financial assets at FVOCI.

The additions to financial assets at FVOCI in the year include € 18 million investments made in UCB Ventures, UCB’s corporate venture fund.

The fair value losses going through OCI mainly relate to the decrease in value of UCB’s holding in Dermira Inc. (€ 31 million).

The current financial assets at FVOCI (€ 17 million) relate to vested long-term incentives granted to employees. These are held in custody for the account of the relevant participants on a separate securities account of UCB. There is a corresponding liability which is recorded in Other Payables (Note 34).

22.4 Investment in associates

In December 2017, the Group made an investment in Syndesi Therepeutics SA, a Belgian company. This investment is considered as an investment in an associate as UCB has significant influence via its equity holding (18.1%) and Board seat. The Group’s share of the investee’s loss for 2018 is € 1 million and there are no amounts of other comprehensive income related to the Group’s investment in this associate. The investment is included in the non-current financial and other assets on the balance sheet.

22.5 Joint operations

No joint operations were entered into by the Group in 2018.

22.6 Subsidiaries with material non-controlling interests

The accumulated non-controlling interest as of 31 December 2018 is € -55 million and relates to Edev S.à r.l. (“Edev”). No dividends have been paid to non-controlling interests during either 2018 or 2017.

Based in Luxembourg, Edev is 100% owned by the non-controlling interests and its summarized financial information is shown in the tables below before intercompany eliminations.

Summarized statement of financial position

 

 

 

€ million

2018

2017

Non-current assets

0

0

Current assets

1

0

Total assets

1

0

Non-current liabilities

29

52

Current liabilities

27

24

Total liabilities

56

76

Non-controlling interest

-55

-76

 

 

 

Summarized income statement

 

 

 

€ million

2018

2017

Revenue

29

30

Expenses

-6

-12

Profit (loss) attributable to the non-controlling interests

23

18

Total comprehensive income (loss) attributable to the non-controlling interests

22

30

 

 

 

Summarized cash flow statement

 

 

 

€ million

2018

2017

Net cash inflow (outflow) from operating activities

0

0

Net cash inflow (outflow) from investing activities

0

0

Net cash inflow (outflow) from financing activities

0

0

Net cash inflow (outflow)

0

0