1.6 Balance sheet and capital expenditure

1.6 Balance sheet and capital expenditure

1.6.1 Capital expenditure

In 2019, the tangible capital expenditure resulting from UCB biopharmaceutical activities amounted to € 99 million (2018: € 94 million). The 2019 capital are expenditures mainly related to manufacturing capacities in Belgium and Switzerland.

Acquisition of intangible assets reached € 195 million in 2019 (2018: € 247 million) and is related to in-licensing deals, capitalized eligible development costs and software. The main impact is the milestone payment (€ 113 million) related to the acquisition of midazolam upon approval of Nayzilam® by the FDA in the U.S.

In addition, as foreseen in the agreement between UCB and Lonza for the manufacturing by Lonza of PEGylated antibody fragment-based bulk active compounds, UCB has participated in the pre-financing of the related capital expenditure. Depreciation charges on this investment are recognized in the cost of goods sold and are added back for recurring EBITDA calculation purposes.

1.6.2 Balance sheet

The intangible assets decreased by € 31 million from € 870 million at 31 December 2018 to € 839 million at 31 December 2019. This includes the ongoing amortization of the intangible assets (€ 190 million), partially offset by additions stemming from the midazolam acquisition (€ 113 million), software and capitalized eligible development costs.

Goodwill at € 5 059 million, up € 88 million, mainly stemming from a stronger U.S. dollar and GBP compared to December 2018.

Other non-current assets increased by € 164 million, driven by property, plant and equipment (right of use asset recognition, increased and improved manufacturing capacities in Belgium and Switzerland, revamping of office facilities) and deferred taxes recognition.

The current assets increased from € 2 950 million as of 31 December 2018 to € 3 295 million as of 31 December 2019 and mainly relates to higher commercial and development inventory and increased trade receivables after strong Q4 2019 net sales.

UCB’s shareholders’ equity, at € 7 009 million, showed an increase of € 754 million between 31 December 2018 and 31 December 2019. The important changes stem from the net profit after non-controlling interests (€ 792 million), the cash-flow hedges (€ 55 million), the U.S. dollar and British pound currency translation (€ 96 million), offset with the dividend payments (€ −228 million) and the acquisition of own shares (€ −87 million).

The non-current liabilities amounted to € 1 678 million, a decrease of € 429 million mainly due to early repayment of long-term loan and Bond transfer to current liabilities.

The current liabilities amounted to € 2 394 million, up € 242 million, impacted by the Bond transfer from non-current liabilities and slightly higher payables.

Net financial cash of € 12 million as per end December 2019 compared to net financial debt of € −237 million as of end December 2018, and mainly relates to the underlying net profitability, offset by the acquisition of assets, the dividend payment on the 2018 results and the acquisition of own shares.