Company: GLPG
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001558370-25-003806
Chunk: 408

Company: GALAPAGOS NV
Filing Date: 2025-03-27
Form: 20-F
Item: Item 16I
Chunk 408
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Credit risk
The term “credit risk” refers to the risk that counterparty will default on its contractual obligations resulting in financial loss for us.
We grant credit to our clients in the framework of our normal business activities. Usually, we require no pledge or other collateral to cover the amounts due. All our receivables are considered collectable, except fortwoinvoices for a total amount of €9.6million, for which we recorded a provision for expected credit losses.
We did not account for a provision for expected credit losses relating to all our other trade and other receivables given that there is no history of material credit losses, nor does forward looking information reveals any potential risks and due to the high quality nature of our customers.
Aging balance of receivables that are due, but that are still considered collectable:
December 31,
2024
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(Euro, in thousands)
60 - 90 days € 552 3 424
90 - 120 days 24 3 208
more than 120 days € 19 117 473
Our cash and cash equivalents are invested primarily in current, notice and term accounts. For banks and financial institutions, only independently rated parties with a minimum rating of ‘ A’ are accepted at the beginning of the term. Our financial investments are also kept within different financial institutions and include term deposits, money market funds and treasury bills with an AAA rating. The money market funds are invested in a well-diversified portfolio of highly rated assets.
Interest rate risk
The only variable interest-bearing financial instruments are cash and cash equivalents and financial investments.
Changes in interest rates may cause variations in interest income and expenses resulting from short term interest-bearing assets.
Effect of interest rate fluctuation
A100basis point increase in interest rates at balance sheet date would have increased profit or loss, and equity, by approximately €33.2 million(2023: €36.8million; 2022: €40.9 million); a100basis point decrease in interest rates would have decreased profit or loss, and equity, by approximately €33.2 million(2023: €36.8million; 2022: €40.9 million). These scenarios assume our entire cash portfolio would immediately reprice at the new interest rates.

F-70

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Foreign exchange risk
We are exposed to foreign exchange risk arising from various currency exposures. Our principal functional currency is euro, but we receive payments from