|€ x 1,000||€ x 1,000|
|Balance at 31 December||2,889||5,069|
The fair value of the contingent consideration arrangement of Velosophy at 31 December 2019 is € 2.9 million (2018: 5.1 million) and will be paid in the first quarter of 2020. The contingent consideration relates at 31 December 2019 to Babboe and Carqon. Key assumptions include a discount rate of 9.3% and the realisation of the minimum EBITDA for the maximum earn-out payment.
The fair value of the contingent consideration arrangement is estimated by applying the income approach using significant not observable market inputs (see key assumptions mentioned above).
The contingent consideration in respect of the Velosophy acquisition is currently the only non-derivative financial liability at fair value through profit and loss.