22 Financial and other assets

22 Financial and other assets

22.1 Non-current financial and other assets

 

 

 

€ million

2019

2018

Financial assets at FVOCI (refer below)

81

52

Investments in Associates

2

3

Cash deposits

12

9

Derivative financial instruments (Note 38)

26

38

Reimbursement rights with respect to German defined benefit plans

23

23

Other financial assets

30

34

Non-current financial and other assets

175

159

 

 

 

22.2 Current financial and other assets

 

 

 

€ million

2019

2018

Clinical trial materials

114

77

Financial assets at FVOCI (refer below)

25

17

Derivative financial instruments (Note 38)

24

11

Current financial and other assets

163

105

 

 

 

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

2019

2018

Equity securities

106

69

Financial assets at FVOCI

106

69

 

 

 

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

 

 

 

 

 

 

2019

2018

€ million

Equity securities

Debt securities

Equity securities

Debt
securities

At 1 January

69

0

83

0

Additions

30

0

23

0

Disposals

−7

0

0

0

Fair value gains/losses (−) going through OCI

14

0

−37

0

At 31 December

106

0

69

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, Ceribell Inc. and investments by 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 2019, UCB’s stakes in Dermira Inc., Heidelberg Pharma AG and Ceribell Inc. were 3.38%, 4.02% and 2.44% (2018: 4.45%, 4.03%, and 4.41%) 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 € 22 million investments made by UCB Ventures, UCB’s corporate venture fund.

The fair value gains going through OCI mainly relate to the increase in value of UCB’s holding in Dermira Inc. (€ 13 million).

The current financial assets at FVOCI (€ 25 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 2019 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 2019.

22.6 Subsidiaries with material non-controlling interests

The accumulated non-controlling interest as of 31 December 2019 is € −30 million and relates mainly to Edev S.à.r.l. (“Edev”). No dividends have been paid to non-controlling interests during either 2019 or 2018.

Based in Luxembourg, Edev is 100% owned by the non-controlling interests.

Summarized financial information for non-controlling interest is shown in the tables below before intercompany eliminations.

Summarized statement of financial position:

 

 

 

€ million

2019

2018

Non-current assets

0

0

Current assets

5

1

Total assets

5

1

Non-current liabilities

6

29

Current liabilities

29

27

Total liabilities

35

56

Non-controlling interest

−30

−55

 

 

 

Summarized income statement:

 

 

 

€ million

2019

2018

Revenue

30

29

Expenses

−5

−6

Profit (loss) attributable to the non-controlling interests

25

23

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

25

22

 

 

 

Summarized cash flow statement:

 

 

 

€ million

2019

2018

Net cash inflow (outflow) from operating activities

−1

0

Net cash inflow (outflow) from investing activities

0

0

Net cash inflow (outflow) from financing activities

6

0

Net cash inflow (outflow)

5

0