Skip to website navigation Skip to article navigation Skip to content

A page refresh occures when a subject is selected.

Skip article navigation.

23. Financial and other assets

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

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

The current and non-current financial assets at FVOCI (excl. derivatives) comprise the following:

€ million

2020

2019

Equity securities

115

106

Financial assets at FVOCI (excl. derivatives)

115

106

The movement in the carrying values of the financial assets at FVOCI (excl. derivatives) is as follows:

 

2020

2019

€ million

Equity securities

Debt securities

Equity securities

Debt securities

At January 1

106

0

69

0

Additions

18

0

30

0

Disposals

- 27

0

-7

0

Fair value gains / losses (-) going through OCI

14

0

14

0

Reclassification from associates (incl. fair value gain)

4

0

0

0

At December 31

115

0

106

0

For more information on the derivatives of which fair value movements are accounted for through OCI, we refer to Note 39.

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 Heidelberg Pharma AG, Syndesi Therapeutics SA, ExeVir Bio BV 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 2020, UCB’s stakes in Heidelberg Pharma AG, Syndesi Therapeutics SA and ExeVir Bio BV were 3.65%, 16.45% and 16.52% (on a fully diluted basis) (2019: 4.02%, 18.1%, 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 € 8 million investments made in UCB Ventures, UCB’s corporate venture fund, as well as a € 4 million investment in ExeVir Bio BV. The participation in Syndesi Therapeutics SA was reclassed from investment in associate to financial asset at FVOCI as UCB’s equity holding was reduced and it was assessed that UCB has lost its significant influence.

The fair value gains going through OCI mainly relate to the increase in value of UCB’s holding in Heidelberg Pharma AG (€ 5 million) and of UCB’s venture fund investments (€ 8 million).

The current financial assets at FVOCI (€ 30 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 35 ). As these shares are held for the account of the relevant participants and not for UCB’s account, these are not treated as treasury shares in accordance with IAS 32.33.