6 Abbreviated statutory financial statements of UCB SA

6.1 Introduction

In accordance with the Belgian Companies Code, it has been decided to present an abbreviated version of the statutory financial statements of UCB SA.

The statutory financial statements of UCB SA are prepared in accordance with Belgian Generally Accepted Accounting Principles.

It should be noted that only the consolidated financial statements as presented above, present a true and fair view of the financial position and performance of the UCB Group.

The statutory auditor has issued an unqualified audit opinion and certify that the non-consolidated financial statements of UCB SA for the year ended 31 December 2018 give a true and fair view of the financial position and results of UCB SA in accordance with all legal and regulatory dispositions.

In accordance with the legislation, these separate financial statements, together with the management report of the Board of Directors to the general assembly of shareholders, as well as the auditor’s report will be filed at the National Bank of Belgium within the statutory periods.

These documents are available on our website www.ucb.com or on simple request, addressed to:

UCB SA
Corporate Communication
Allée de la Recherche 60
B-1070 Brussels (Belgium)

6.2 Balance sheet

 

 

 

€ million

2018

2017

Assets

 

 

Formation expenses

11

12

Intangible assets

0

0

Tangible assets

18

9

Financial assets

4 128

4 813

Fixed assets

4 157

4 834

Amounts receivable after more than one year

1 596

1 150

Amounts receivable within one year or less

883

1 591

Short-term investments

113

156

Cash at bank and on hand

122

28

Deferred charges and accrued income

176

211

Current assets

2 890

3 136

Total assets

7 047

7 970

Liabilities

 

 

Capital

584

584

Share premium

2 000

1 999

Reserves

2 729

2 929

Profit brought forward

22

36

Equity

5 334

5 548

Provisions

38

41

Provisions and deferred taxes

38

41

Amounts payable after more than one year

1 261

1 501

Amounts payable within one year or less

375

830

Accrued charges and deferred income

39

50

Current liabilities

1 675

2 381

Total liabilities

7 047

7 970

 

 

 

6.3 Income statement

 

 

 

€ million

2018

2017

Operating income

74

77

Operating charges

-128

-131

Operating result

-55

-54

Financial income

258

181

Financial charges

-181

-91

Financial result

77

90

Profit before income taxes

22

36

Income taxes

0

0

Profit for the year available for appropriation

22

36

 

 

 

Following the Royal Decree of 18 December 2015 holding implementation of Directive 2013/34/EU of 26 June 2013 on the annual and consolidated financial statements and related reports of certain types of undertakings, that amended the RD of 30 January 2001 implementing the Companies Code, the exceptional results are now shown as part of operating result or financial result depending on the nature of the amounts.

6.4 Appropriation account

The activities of UCB SA generated in 2018 a net profit of € 22 million after income taxes. The amount available for distribution is € 22 million.

The issued share capital of UCB SA is represented by 194 505 658 shares without par value as per 31 December 2018.

Per 31 December 2018, UCB SA owns 2 012 356 own shares in order to honor the exercise of share options and share awards granted to the Board of Directors and certain categories of employees.

The Board of Directors proposes to pay a gross dividend of € 1.21 per share. If this dividend proposal is approved by the General Meeting on 25 April 2019, the net dividend of € 0.847 per share will be payable as of 30 April 2019 against the delivery of coupon #22. The shares held by UCB SA are not entitled to a dividend.

Per 31 December 2018, 192 493 302 UCB shares are entitled to a dividend, representing a total distribution of € 233 million. This amount may fluctuate depending the number of UCB shares held by UCB SA on the dividend approval date. The Board of Directors will communicate at the general meeting the total number of UCB shares entitled to a dividend and will submit the aggregate amount to be distributed for approval. The annual accounts of 2018 will be adapted accordingly.

6.5 Summary of significant accounting principles

The Board of Directors made the following decisions in accordance with the Article 28 of the Royal Decree of 30 January 2001 on implementing the company code.

6.5.1 Tangible assets

Tangible assets purchased from third parties have been included in the balance sheet at purchase price; assets manufactured by the company itself have been valued at cost. The purchase price or cost is depreciated on a straight-line basis considering “pro rata temporis”. The depreciation rates are as follows:

  • Administrative buildings 3%
  • Industrial buildings 5%
  • Tools 15%
  • Furniture and office machinery 15%
  • Vehicles 20%
  • Computer equipment and office machines 33.3%
  • Prototype equipment 33.3%

6.5.2 Financial assets

UCB shareholdings have been valued in accordance with the proportion held in shareholders’ equity of the UCB companies concerned.

Shareholdings not part of the UCB companies are valued at cost. An impairment is booked whenever the valuation shows a permanent loss in realizable value.

6.5.3 Receivables and liabilities

They are shown at their book value. Receivables have been written down if their repayment, when due, is entirely or partly uncertain and doubtful.

6.5.4 Assets and commitments expressed in foreign currencies

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transactions.

Non-monetary assets and liabilities (intangible and tangible assets, shareholdings), denominated in foreign currencies, are translated at the foreign exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at balance sheet date rate. Realized and unrealized exchange differences on foreign currency transactions are recognized in the income statement.

6.5.5 Provisions

All the risks born by the company have been the subject of provisions reviewed each year, in accordance with the rules of prudence, good faith and sincerity. Provisions are recorded at normal value.

6.5.6 Foreign currencies

Derivatives are accounted for at fair value through P&L unless the derivative has no offsetting exposure in the stand-alone financial statements, in which case, the derivative will only be disclosed as off-balance sheet commitment not affecting the balance sheet and/or income statement accounts. The amount disclosed as off-balance sheet commitment will be in line with the IFRS methodology. Additionally, the effective portion of changes in the fair value of the derivative financial instruments that are designated and qualify as cash flow hedges, are classified on the same line in the income statement or balance sheet as the hedged item once the hedged item affects profit or loss or results in the recognition of a non-financial asset or liability.

6.5.7 Fair value adjustments on loans being acquired

Loans that have been acquired are recognized in the balance sheet at nominal value. All differences between the nominal value and the acquisition value are recognized on an accrual account and taken in the income statement pro rata temporis on a linear basis over the remaining duration of the loans.