36 Note to the consolidated statement of cash flows

The cash flow statement identifies operating, investing and financing activities for the period.

UCB uses the indirect method for the operating cash flows. The net profit and loss is adjusted for:

  • the effects of non-cash transactions such as depreciation and amortization, impairment losses, provisions, mark-to-market, etc., and the variance in working capital;
  • items of income or expense associated with investing or financing cash flows.

Important non-cash transactions for 2018 mainly relate to CTA adjustments on liquidated entities that were transferred to the income statement (€ 32 million) and to tax credits (€ 74 million) for which the cash benefit will be received in later years.

Important non-cash transactions for 2017 mainly relate to € 46 million for a receivable relating to the out-licensing of Xyzal® and R&D tax credits for € 71 million for which the cash benefit will be received in later years.

 

 

 

 

€ million

Note

2018

2017

1

Non-cash items are mainly linked to transfers from one heading to another, non-cash movements linked to affiliate’s revaluation from Fx currencies and other movements linked to entry/exit in consolidation scope or merge of entities.

Adjustment for non-cash transactions

 

254

150

Depreciation and amortization

10, 21, 19

288

234

Impairment/reversal (-) charges

10, 13

1

1

Equity settled share-based payment expense

 

12

8

Other non-cash transactions in the income statement

 

-110

-76

Adjustment IFRS 9

16

4

-1

Unrealized exchange gain (-)/losses

 

8

6

Change in provisions and employee benefits

 

26

-17

Change in inventories and bad debt provisions

 

25

-5

Adjustment for items to disclose separately under operating cash flow

 

202

218

Tax charge of the period from continuing operations

17

199

218

Tax charge of the period from discontinued operations

 

3

0

Adjustment for items to disclose under investing and financing cash flow

 

2

35

Gain (-)/loss on disposal of fixed assets

 

-41

-2

Dividend income (-)/expenses

 

0

0

Interest income (-)/charge

 

43

37

Change in working capital

 

 

 

Inventories movement per consolidated balance sheet

 

-53

-19

Trade and other receivable and other assets movement per consolidated balance sheet

 

-32

95

Trade and other payable movement per consolidated balance sheet

 

69

-140

As it appears in the consolidated balance sheet and corrected by:

 

-16

-64

Non-cash items1

 

33

-116

Change in inventories and bad debt provisions disclosed separately under operating cash flow

 

-25

5

Change in interest receivable/payable disclosed separately under operating cash flow

 

0

2

Change in dividend receivable disclosed separately under investing cash flow

 

0

0

Change in dividend payable disclosed separately under financing cash flow

 

0

0

Currency translation adjustments

 

-27

94

As it appears in the consolidated cash flow statement

 

-35

-79