Galapagos NV — Annual Report 2020

Feb 18, 2021

Consolidated financial statements

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME/LOSS (-)

Consolidated income statement

	Year ended 31 December
(thousands of €, except per share data)	2020	2019 (*)
Revenues	478,053	834,901
Other income	52,207	50,896
Total revenues and other income	530,260	885,797
Research and development expenditure	(523,667)	(420,090)
Sales and marketing expenses	(66,468)	(24,577)
General and administrative expenses	(118,757)	(72,382)
Total operating expenses	(708,892)	(517,049)
Operating profit/loss (-)	(178,632)	368,748
Fair value re-measurement of share subscription agreement and warrants	3,034	(181,644)
Other financial income	18,667	21,389
Other financial expenses	(152,844)	(59,968)
Profit/loss (-) before tax	(309,775)	148,525
Income taxes	(1,226)	165
Net profit/loss (-) from continuing operations	(311,001)	148,689
Net profit from discontinued operations, net of tax	5,565	1,156
Net profit/loss (-)	(305,436)	149,845
Net profit/loss (-) attributable to:
Owners of the parent	(305,436)	149,845
Basic income/loss (-) per share	(4.69)	2.60
Diluted income/loss (-) per share	(4.69)	2.49
Basic income/loss (-) per share from continuing operations	(4.78)	2.58
Diluted income/loss (-) per share from continuing operations	(4.78)	2.47

(*) The 2019 comparatives have been restated to consider the impact of classifying the Fidelta business as discontinued operations in 2020.

Consolidated statement of comprehensive income/loss (-)

	Year ended 31 December
(thousands of €)	2020	2019 (*)
Net profit/loss (-)	(305,436)	149,845
Items that will not be reclassified subsequently to profit or loss:
Re-measurement of defined benefit obligation	(6,065)	(4,107)
Items that may be reclassified subsequently to profit or loss:
Translation differences, arisen from translating foreign activities	(1,024)	415
Realization of translation differences upon liquidation of foreign operations	(1,023)	–
Other comprehensive income/loss (-), net of income tax	(8,112)	(3,692)
Total comprehensive income/loss (-) attributable to:
Owners of the parent	(313,548)	146,154
Total comprehensive income/loss (-) attributable to owners of the parent arises from:
Continuing operations	(318,841)	145,050
Discontinued operations	5,293	1,104
Total comprehensive income/loss (-), net of income tax	(313,548)	146,154

(*) The 2019 comparatives have been restated to consider the impact of classifying the Fidelta business as discontinued operations in 2020.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Assets

	31 December	31 December
(thousands of €)	2020	2019
Intangible assets	67,565	24,927
Property, plant and equipment	103,378	66,052
Deferred tax assets	4,475	4,205
Non-current trade receivables	50,000	–
Non-current R&D incentives receivables	111,624	93,407
Other non-current assets	11,343	14,091
Non-current assets	348,384	202,682
Trade and other receivables	148,418	54,009
Current R&D incentives receivables	24,104	21,949
Current financial investments	3,026,278	3,919,216
Cash and cash equivalents	2,135,187	1,861,616
Other current assets	11,953	9,138
Current assets from continuing operations	5,345,941	5,865,927
Assets classified as held for sale	23,406	–
Total current assets	5,369,347	5,865,927
Total assets	5,717,731	6,068,609

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Equity and liabilities

	31 December	31 December
(thousands of €)	2020	2019
Share capital	291,312	287,282
Share premium account	2,727,840	2,703,583
Other reserves	(10,907)	(4,842)
Translation differences	(3,189)	(1,142)
Accumulated losses	(334,701)	(109,223)
Total equity	2,670,355	2,875,658
Retirement benefit liabilities	14,996	8,263
Non-current lease liabilities	23,035	19,558
Other non-current liabilities	8,096	6,989
Non-current deferred income	2,365,974	2,586,348
Non-current liabilities	2,412,101	2,621,158
Current lease liabilities	6,401	5,826
Trade and other liabilities	172,386	143,434
Current tax payable	1,248	2,037
Current financial instruments	3,164	6,198
Current deferred income	443,159	414,298
Current liabilities from continuing operations	626,357	571,793
Liabilities directly associated with assets classified as held for sale	8,917	–
Total current liabilities	635,274	571,793
Total liabilities	3,047,375	3,192,951
Total equity and liabilities	5,717,731	6,068,609

CONSOLIDATED CASH FLOW STATEMENT

(thousands of €)	2020	2019
Net profit/loss (-) of the year	(305,436)	149,845
Adjustment for non-cash transactions	230,723	248,027
Adjustment for items to disclose separately under operating cash flow	4,067	(7,731)
Adjustment for items to disclose under investing and financing cash flows	(2,472)	(5,061)
Change in working capital other than deferred income	(146,092)	12,698
Increase/decrease (-) in deferred income	(207,787)	2,804,202
Cash generated/used (-) in operations	(426,998)	3,201,980
Interest paid	(9,033)	(1,158)
Interest received	10,054	7,852
Corporate taxes paid	(1,358)	(57)
Net cash flows generated/used (-) in operating activities	(427,336)	3,208,617
Purchase of property, plant and equipment	(42,522)	(22,385)
Purchase of and expenditure in intangible fixed assets	(48,793)	(23,300)
Proceeds from disposal of property, plant and equipment	49	–
Purchase of current financial investments	(4,574,206)	(4,787,284)
Interest received related to current financial investments	3,500	5,059
Sale of current financial investments	5,415,316	1,063,344
Acquisition of financial assets	(2,681)	(177)
Proceeds from sale of financial assets held at fair value through profit or loss	6,626	82
Net cash flows generated/used (-) in investing activities	757,288	(3,764,660)
Payment of lease liabilities	(6,247)	(5,091)
Proceeds from capital and share premium increases, gross amount	–	960,087
Issue costs paid related to capital and share premium increases	–	(4,447)
Proceeds from capital and share premium increases from exercise of subscription rights	28,287	17,167
Proceeds from capital and share premium increases from exercise of warrant A by Gilead	–	368,035
Net cash flows generated in financing activities	22,040	1,335,751
Increase in cash and cash equivalents	351,994	779,708

(thousands of €)	2020	2019
Cash and cash equivalents at beginning of year	1,861,616	1,290,796
Transfer to current financial investments	–	(198,922)
Increase in cash and cash equivalents	351,994	779,708
Effect of exchange rate differences on cash and cash equivalents	(70,539)	(9,966)
Cash and cash equivalents at end of the year	2,143,071	1,861,616

Note to the consolidated cash flow statement

	31 December	31 December
(thousands of €)	2020	2019
Current financial investments	3,026,278	3,919,216
Cash and cash equivalents	2,135,187	1,861,616
Cash and cash equivalents classified as assets held for sale	7,884	–
Current financial investments and cash and cash equivalents	5,169,349	5,780,832

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(thousands of €)	Share capital	Share premium account	Translation differences	Other reserves	Accumul. losses	Total
On 1 January 2019	236,540	1,277,780	(1,557)	(735)	(297,779)	1,214,249
Change in accounting policy (modified retrospective applica tion IFRS 16)					416	416
Restated total equity at 1 January 2019	236,540	1,277,780	(1,557)	(735)	(297,363)	1,214,665
Net profit					149,845	149,845
Other comprehensive income/ loss (-)			415	(4,107)		(3,692)
Total comprehensive income/ loss (-)			415	(4,107)	149,845	146,154
Share-based compensation					38,297	38,297
Derecognition of financial liability from share subscription agreement and warrant A		135,702				135,702
Issue of new shares	36,945	923,142				960,087
Share issue costs	(4,447)					(4,447)
Exercise of warrant A by Gilead	14,162	353,873				368,035
Exercise of subscription rights	4,082	13,085				17,167
On 31 December 2019	287,282	2,703,583	(1,142)	(4,842)	(109,223)	2,875,658
On 1 January 2020	287,282	2,703,583	(1,142)	(4,842)	(109,223)	2,875,658
Net loss					(305,436)	(305,436)
Other comprehensive loss			(2,047)	(6,065)		(8,112)
Total comprehensive loss			(2,047)	(6,065)	(305,436)	(313,548)
Share-based compensation					79,959	79,959
Exercise of subscription rights	4,031	24,257				28,288
On 31 December 2020	291,312	2,727,840	(3,189)	(10,907)	(334,701)	2,670,355