6-K
Grifols SA (GRFS)
6-K
2023-11-02
For: 2023-11-02
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April 05, 2026
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TORULE 13a-16 OR 15d-16UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2023
Commission File No. 001-35193
Grifols, S.A.
(Translation of registrant’s name into English)
Avinguda de la Generalitat, 152-158
Parc de Negocis Can Sant Joan
Sant Cugat del Valles 08174
Barcelona, Spain
(Address of registrant’s principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Grifols, S.A.
TABLE OF CONTENTS
| Item | Sequential Page Number | |
|---|---|---|
| 1. | Third Quarter 2023 Results, dated November 2, 2023 | 3 |
| Page 1 of 5<br>Third Quarter 2023 Results<br>Grifols accelerates EBITDA margin expansion to 25.1%<br>and further improves its operating performance<br>1234<br>Barcelona, Spain, November 02, 2023 – Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS), a<br>global healthcare company and leading manufacturer of plasma-derived medicines, delivered<br>another quarter of significant revenue growth, accelerated profitability, and ongoing commitment to<br>its deleveraging path.<br>Thomas Glanzmann, Grifols’ Executive Chairman and CEO commented: “Grifols’ performance and<br>reinforced fundamentals reflect our commitment on enhancing the business to achieve its full<br>potential and maximize value for all stakeholders. Our strong revenue growth and margin expansion<br>are testament to the execution of our growth strategy, alongside the successful deployment of our<br>Operational Improvement Plan.<br>Regarding the in June announced transaction in China, we are progressing and working diligently<br>towards getting the agreement signed and expect to announce it before year-end 2023, in line with<br>our commitment. As we are dealing with a very highly regulated environment, we expect to get all<br>approvals and closing the transaction during the first half of 2024.<br>We are now addressing our leverage and stepping up the focus on our growth strategy to ensure<br>the creation of sustainable long-term shareholder value.”<br>1 Operating or constant currency (cc) excludes changes rate variations reported in the period<br>2 Sept’23 YTD’23 vs. Sept’22 YTD’22 (excl. Biotest)<br>3 Sept’23 vs. July’22 (U.S. data)<br>4 Compared to 2022 full year figures, before the effect of inflation<br>5 Leverage ratio consistently calculated based on the credit facilities agreement and including Biotest<br> • Total revenue increase to EUR 4,822 million (+11.7% cc1<br>) YTD’23 and EUR 1,597 million (+9.0%<br>cc) in Q3’23, driven by Biopharma (+14.5% cc YTD’23 and 13.7% cc in Q3’23) on the back of<br>solid growth of immunoglobulins and albumin<br> • EBITDA Adjusted margin increases by 480bps to 25.1% in Q3’23 from Q4’22, reaching EUR 374<br>million, and totals EUR 1,028 million, at 23.2% YTD’23, excluding Biotest<br> • Plasma supply increases by 10%2<br>, while cost per liter continues to decline by 22%3<br>following<br>successful execution of the Operational Improvement Plan, resulting in EUR 450 million4<br>annualized cash cost savings<br> • Reported net profit stands at EUR 60 million in Q3’23, turning positive YTD’23<br> • Leverage ratio down to 6.7x<br>5 driven by EBITDA and operating cash flow improvement, while<br>commitment to reach 4.0x by 2024 and signing and announcing one transaction in 2023 remains<br>unchanged<br> • EBITDA Adjusted 2023 guidance updated to EUR 1,450 million and reaffirmed total revenue<br>growth of 10-12% cc driven by Biopharma growth of 12-14% cc<br> • Biotest Fibrinogen ADFIRST trial and two innovation milestones set for the second half of 2023<br>completed successfully<br> • New leadership appointments to strengthen Innovation and Digitalization | ||
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| Page 2 of 5<br>Business performance<br>Total revenue grew 9.0% at constant currency (cc) in Q3’23 (+3.7% on a reported basis) compared<br>to the same period last year, reaching EUR 1,597 million (+9.6% cc and +3.8% reported excl.<br>Biotest). YTD’23 revenue totalled EUR 4,822 million, 11.7% cc (+10.8%) (+8.4% cc, +7.5% excluding<br>Biotest).<br>Biopharma revenue grew by 13.7% cc (+8.1%) to EUR 1,368 million in Q3’23 (+14.9% cc, +8.7%<br>excluding Biotest). The performance in Biopharma was driven by strong underlying demand,<br>continued sustainable plasma supply, price increases for key proteins, and a robust non-U.S. growth<br>strategy. Year to date, Biopharma sales stood at EUR 4,066 million (EUR 3,699 million excluding<br>Biotest), a 14.5% cc (+13.6%) year-on-year increase (+10.6% cc, +9.7% excluding Biotest).<br>Sales of immunoglobulin, Grifols’ flagship product, grew by 17.4% cc in Q3’23, driving a +14.9%<br>growth YTD’23 excluding Biotest, backed by sustained strong adoption of subcutaneous<br>immunoglobulin (SCIG) Xembify®<br> ’s resulting in +48.4% cc growth YTD.<br>Grifols continues to strengthen its immunoglobulin franchise focused on the immunodeficiency<br>market, including the highest-growth primary (PI) and secondary (SID) indications, while maintaining<br>leadership in neurology and acute care. The company aims to continue growing its franchise in the<br>U.S. and other selected countries, while further accelerating the adoption of Xembify®<br>..<br>Diagnostic revenue was down by 3.1% cc (-7.9%) in Q3’23, totalling EUR 156 million. For the first<br>nine months, revenue increased by 0.9% cc (-0.3%), reaching EUR 498 million, primarily driven by<br>Blood typing solutions (+6.7% cc YTD’23).<br>Grifols continues to maximise the value of its integrated portfolio in Bio Supplies, leveraging a<br>broader portfolio provided by the integration of Access Biologicals. In Q3, revenue declined by 14.1%<br>cc (-18.4%) to EUR 36 million, the result of lower cell culture sales. On a year-to-date basis, revenue<br>grew 22.8% cc (+22.6%), reaching EUR 119 million.<br>Plasma supply grew sustainably, marking a +10% growth YTD’23, while the successful execution of<br>the Operational improvement plan has resulted in a 22% reduction in cost per liter (CPL) in September<br>2023 compared to the peak in July 2022, which will deliver future margin expansion. The main drivers<br>were the continued decline in donor commitment compensation, plasma-center network<br>rationalization, process efficiencies, structure cost optimization and donor experience improvement.<br>Financial performance and leverage<br>Adjusted gross margin reached 41.0% in Q3’23, improving by 400bps versus the same quarter<br>last year and driving a 39.1% adjusted gross margin year to date (39.7% and 37.8% including Biotest,<br>respectively). Based on the nine-month lag of the industry’s inventory accounting, the company is<br>now recognising the profit and loss (P&L) benefits from the CPL decline that began in Q3’22, with<br>further sequential margin expansion expected for Q4’23 and throughout 2024.<br>EBITDA Adjusted totalled EUR 374 million in Q3’23, with adjusted margin at 25.1% and leading to<br>EUR 1,028 million YTD’23, a 23.2% margin. Biopharma’s strong performance, cost savings from the<br>Operational Improvement Plan, and operational leverage continue to support margins. | ||
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| Page 3 of 5<br>EBITDA Adjusted excludes EUR 148 million of one-off charges, including the EUR 140 million of<br>one-time restructuring costs recognized in Q1’23.<br>Reported EBITDA stood at EUR 360 million in Q3’23 and EUR 880 million YTD’23 (EUR 360 million<br>and EUR 884 million including Biotest, respectively).<br>Reported net profit totalled EUR 60 million in Q3 and contributed to EUR 48 million YTD’23 (EUR<br>60 million and EUR 3 million including Biotest, respectively).<br>Deleveraging remains a key priority, and Grifols reiterates its commitment to deleveraging its<br>balance sheet, with its leverage ratio declining to 6.7x in Q3’23 driven by EBITDA improvement and<br>operating cash flow generation of EUR 262 million. The company is committed to reach 4.0x by the<br>end of 2024 and to sign and announce one deleveraging transaction by year-end 2023.<br>Excluding the impact of IFRS 1665net financial debt totalled EUR 9,540 million.<br>As of September 30, 2023, Grifols had a liquidity position of EUR 1,134 million and a cash<br>position of EUR 484 million.<br>Innovation<br>Grifols is on track to achieve all innovation milestones set for the second half of 2023, including<br>successfully completing those of GIGA564 and GIGA2339 in Q3’23. Additionally, its innovation<br>pipeline continues to progress, including the Biotest Fibrinogen ADFIRST trial, which was completed<br>in the third quarter.<br>Strengthened leadership<br>As Grifols looks to achieve its full potential and solidify its position as a global industry leader,<br>ensuring a best-in-class team and strong leadership are key. Grifols was pleased to make two senior<br>leadership appointments in the third quarter as part of these efforts.<br>Dr. Jörg Schüttrumpf was appointed Chief Scientific Innovation Officer (CSIO). As the head of<br>innovation for the entire Grifols Group, Dr. Schüttrumpf will focus on accelerating the development<br>of differentiated plasma and non-plasma medicines in key therapeutic areas, building on Grifols’<br>robust innovation pipeline. His responsibilities include management of the entire development cycle<br>for new therapies, from discovery to clinical trial programs, and strategic partnerships and advanced<br>technologies.<br>Miguel Louzan was appointed to the new role of Chief Digital Information Officer (CDIO).<br>Mr. Louzan will lead digital and data transformation. He will focus his efforts in accelerating the<br>company’s use of digital platforms, data science and new technologies to transform and strengthen<br>critical business activities such as relationships with plasma donors and customers, manufacturing<br>operations, and the development of new therapeutics and cybersecurity.<br>6 As of September 2023, the impact of IFRS 16 on total debt is EUR 1,032.6 million | ||
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| Page 4 of 5<br>CONFERENCE CALL<br>Grifols will host today a conference call at 1.30pm CET / 8.30am EST on Thursday, November 02,<br>2023 to discuss its Q3’23 business update. To listen to the webcast and view the Business Update<br>Presentation, visit our web site www.grifols.com/en/investors. Participants are advised to register in<br>advance of the conference call.<br>The transcript and webcast replay of the call will be available on our web site at<br>www.grifols.com/en/investors within 24 hours after the end of the live conference call.<br>INVESTORS:<br>Grifols Investors Relations & Sustainability<br>inversores@grifols.com - investors@grifols.com<br>sostenibilidad@grifols.com - sustainability@grifols.com<br>Tel. +34 93 571 02 21<br>MEDIA CONTACTS:<br>Grifols Press Office<br>media@grifols.com / Tel. +34 93 571 00 02<br>Spain<br>Duomo Comunicación<br>Tel.: +34 91 311 92 89 – +34 91 311 92 90<br>Raquel Lumbreras (M. +34 659 572 185)<br>Raquel_lumbreras@duomocomunicacion.com<br>Borja Gómez (M. +34 650 402 225)<br>Borja_gomez@duomocomunicacion.com<br>International<br>FGS Global<br>Email: Grifols@fgsglobal.com<br>Tel.: +44 20 7251 3801<br>Charles.Obrien@fgsglobal.com<br>James.Gray@fgsglobal.com<br>About Grifols<br>Grifols is a global healthcare company founded in Barcelona in 1909 committed to improving the health and well-being of<br>people around the world. A leader in essential plasma-derived medicines and transfusion medicine, the company develops,<br>produces, and provides innovative healthcare services and solutions in more than 110 countries.<br>Patient needs and Grifols’ ever-growing knowledge of many chronic, rare and prevalent conditions, at times life-threatening,<br>drive the company’s innovation in both plasma and other biopharmaceuticals to enhance quality of life. Grifols is focused<br>on treating conditions across a broad range of therapeutic areas: immunology, hepatology and intensive care,<br>pulmonology, hematology, neurology, and infectious diseases.<br>A pioneer in the plasma industry, Grifols continues to grow its network of donation centers, the world’s largest with over<br>390 across North America, Europe, Africa and the Middle East, and China.<br>As a recognized leader in transfusion medicine, Grifols offers a comprehensive portfolio of solutions designed to enhance<br>safety from donation to transfusion, in addition to clinical diagnostic technologies. It provides high-quality biological supplies<br>for life-science research, clinical trials, and for manufacturing pharmaceutical and diagnostic products. The company also<br>supplies tools, information and services that enable hospitals, pharmacies and healthcare professionals to efficiently deliver<br>expert medical care.<br>Grifols, with more than 24,000 employees in more than 30 countries and regions, is committed to a sustainable business<br>model that sets the standard for continuous innovation, quality, safety, and ethical leadership.<br>In 2022, Grifols’ economic impact in its core countries of operation was EUR 9.6 billion. The company also generated<br>193,000 jobs, including indirect and induced. | ||
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| Page 5 of 5<br>The company’s class A shares are listed on the Spanish Stock Exchange, where they are part of the Ibex-35 (MCE:GRF).<br>Grifols non-voting class B shares are listed on the Mercado Continuo (MCE:GRF.P) and on the U.S. NASDAQ through<br>ADRs (NASDAQ:GRFS).<br>For more information about Grifols, please visit www.grifols.com | ||
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| Q3 2023 Results - 1 -<br>Delivering on Commitments:<br>Accelerating Profitable<br>Growth and Deleveraging<br>Q3 2023 Results<br>November 2, 2023 | ||
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| Q3 2023 Results - 2 -<br>Legal Disclaimer<br>Important Information<br>This presentation does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market and Investment Services<br>Law (Law 6/2023, of 17 March, as amended and restated from time to time), Royal Decree 1310/2005, of November 4, and its implementing regulations. In addition, this document does<br>not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, nor a request for any vote or approval in any other jurisdiction.<br>Forward-Looking Statements<br>This presentation contains forward-looking information and statements about GRIFOLS based on current assumptions and forecast made by GRIFOLS management, including pro forma<br>figures, estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to capital expenditures, synergies, products and services, and<br>statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expected”, “potential”,<br> “estimates” and similar expressions.<br>Although Grifols believes that the expectations reflected in such forward-looking statements are reasonable, various known and unknown risks, uncertainties and other factors could lead<br>to material differences between the actual future results, financial situation, development or performance of the Company and the estimates given here. These factors include those<br>discussed in our public reports filed with the Comisión Nacional del Mercado de Valores and the Securities and Exchange Commission, which are accessible to the public. The Company<br>assumes no liability whatsoever to update these forward-looking statements or conform them to future events or developments. Forward-looking statements are not guarantees of future<br>performance. They have not been reviewed by the auditors of Grifols.<br>NON-GAAP Financial Measures<br>This presentation refers to certain non-GAAP financial measures. The presentation of these financial measures is not intended to be considered in isolation, or as a substitute for, or<br>superior to, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP<br>financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for<br>comparative purposes. We compensate for these limitations by providing specific information regarding GAAP amounts excluded from these non-GAAP financial measures. A<br>reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in our Grifols Financial Statements. | ||
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| Q3 2023 Results - 3 -<br>Table of Contents<br>4. Final Remarks<br>Q3 2023 Results - 3 -<br>1. Accelerating Profitable Growth<br>2. Performance by Business Unit<br>3. Group Financial Performance<br>5. Annex | ||
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| Q3 2023 Results - 4 -<br>Accelerating Profitable Growth While Focused on Deleveraging<br>Q3 and YTD’23: Delivering on Commitments<br>Delivered Operational Performance<br>Accelerate growth<br>Planning and execution<br>Lean and cost-effective organization<br>Organic EBITDA improvement<br>Improved cash flows<br>+11.7% cc<br>Revenue growth YTD’23<br>(incl. Biotest)<br>25.1%<br>Adj. EBITDA Margin Q3<br>(excl. Biotest)<br>EUR 450m+<br>Cash cost savings<br>+10%<br>Plasma supply YTD’23<br>EUR 1,450m<br>EBITDA guidance FY23<br>(incl. Biotest)<br>Organic<br>deleveraging<br>well on track<br>6.7x (9.0x in Q2’22)<br>Leverage ratio Q3’23<br>4.0x<br>Stronger balance sheet Leverage ratio target by 2024<br>Deleveraging transaction<br>Deleveraging transaction<br>expected to be signed and<br>announced in 2023<br>-22%<br>CPL Sept’23 vs. Jul’22<br>Deleveraging Execution<br>Focused on Growth Strategy<br>Strengthened leadership<br>Accelerate innovation<br>Egypt and Canada self-sufficiency initiatives<br>New leadership in Innovation<br>and Digital<br>On track to achieve innovation<br>milestones set for H2<br>Global market maker | ||
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| Q3 2023 Results - 5 -<br>Table of Contents<br>4. Final Remarks<br>Q3 2023 Results - 5 -<br>2. Performance by Business Unit<br>1. Accelerating Profitable Growth<br>3. Group Financial Performance<br>5. Annex | ||
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| Q3 2023 Results - 6 -<br>Revenue Driven by Double Digit Biopharma Growth<br>Performance by Business Unit<br>Grifols Biotest Grifols<br>incl. Biotest<br>Revenues 4,456 367 4,822<br>% growth +7.5% +77.9% +10.8%<br>% growth at cc +8.4% +78.3% +11.7%<br>Biopharma 3,699 367 4,065<br>% growth +9.7% +77.9% +13.6%<br>% growth at cc +10.6% +78.3% +14.5%<br>Diagnostic 498 - 498<br>% growth -0.3% - -0.3%<br>% growth at cc +0.9% - +0.9%<br>Bio Supplies 119 - 119<br>% growth +22.6% - +22.6%<br>% growth at cc +22.8% - +22.8%<br>Others 140 - 140<br>% growth -20.9% - -20.9%<br>% growth at cc -21.0% - -21.0%<br>206<br>357<br>162<br>368 367<br>Q3 YTD 2022 Biopharma<br>5<br>Diagnostic<br>22<br>Bio Supplies<br>36<br>Others &<br>Intersegments<br>4,492<br>Q3 YTD 2023<br>4,455<br>FX<br>38<br>Q3 YTD 2023<br>(cc)<br>4,351<br>4,860 4,822<br>4,145<br>(EUR in millions)<br>+0.9% cc +22.8% cc<br>+11.7% cc<br>(incl. Biotest)<br>+8.4% cc<br>(excl. Biotest)<br>+10.8%<br>(incl. Biotest)<br>+7.5%<br>(excl. Biotest)<br>-21.0% cc<br>Biotest1<br>Grifols<br>+10.6% cc<br>Q3 YTD 2023 (EUR in millions)<br>1 Biotest consolidating since May’22 | ||
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| Q3 2023 Results - 7 -<br>Key protein % revenues YTD growth (cc) Drivers<br>IG 55-60% +14.9% • Higher Xembify® (SCIG) demand in the U.S.<br> • Strong demand and positive pricing in Europe and ROW<br>Albumin 10-15% +17.9% • Higher demand in China<br> • Price increases in China and some EU and LATAM countries<br>Alpha-1 &<br>Specialty<br>proteins<br>25-30% -0.1%<br> • Lower Alpha-1 volume in some EU countries due to industry<br>dynamics, partially offset by higher demand in Spain, Italy and<br>Austria<br> • Strong anti-rabies’ performance driven by higher demand in<br>the U.S.<br> • Lower pdFVIII performance driven by unfavorable geo mix<br>IG and Albumin Franchises Growth Accelerates<br>Performance by Business Unit | Biopharma (excl. Biotest)<br>+8.7%<br>+14.9% cc Q3’23<br>+9.7%<br>+10.6% cc Q3 YTD’23 IG YTD’23 sales growth performance<br>14.5%<br>12.8%<br>17.4%<br>Q1'23 Q2'23 Q3'23<br>SCIG YTD’23 volume growth performance<br>+14.9%<br>cc<br>Q3 YTD’23<br>Q3 YTD’23<br>+48.4%<br>cc<br>Q1'23 Q2'23 Q3'23 | |
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| Q3 2023 Results - 8 -<br>80<br>85<br>90<br>95<br>100<br>105<br>110<br>Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23<br>Continued CPL Reduction Drives Accelerated Margin Expansion<br>Performance by Business Unit | Biopharma | Cost Per Liter<br>Cost per liter (CPL)<br>Base 100<br>Note: -22% as of Sept’23 compared with July’22 peak. Excludes Biotest CPL (U.S. data)<br>Plasma supply growth +10%<br>Oct. YTD’23 vs. Oct. YTD’22<br>Operational Improvement Plan initiatives continue<br>to drive CPL decline<br>Main drivers<br> • Decreasing donor commitment compensation<br> • Plasma center network rationalization<br> • Process efficiency<br> • Structure cost optimization<br> • Donor experience improvement<br>-22% |
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| Q3 2023 Results - 9 -<br>Milestone 2023 timing Status1 Details<br>New Product<br> & Indication<br>Finalize enrollment of the PRECIOSA study H1 Enrollment completed in May (410 subjects) following a<br>successful acceleration plan (avg ~20 pt/mo in the last 12Mo)<br>Alpha-1 AT 15% SC study advancement from single to repeat dose phase H1 Progress within Ph1/2 study. Positive PK & Safety data for<br>single dose enables to move to repeat dose phase<br>First patient enrolled and treated in Xembify® SID-CLL study H2 Activation of US sites ongoing and first sites active in Europe<br>GIGA564 IND submission H2 IND submitted in Oct. Collaboration agreement with NCI<br>(National Cancer Institute) signed in Sept.<br>GIGA2339 pre-IND submission H2 Positive FDA Pre-IND meeting held Sept. 15<br>Lifecycle<br>Management<br>Final results of Xembify® bi-weekly dosing study H1 Positive results. FDA Submission completed Sept. 18<br>Final results of IVIG-PEG study H1 Positive results<br>Finalize enrolment of the SPARTA study H2 Ahead of schedule<br>Enrolment completed in June<br>Biotest<br>Trimodulin ESsCAPE trial study initiation H1 First sites active. First patients enrolled<br>Yimmugo® BLA FDA submission H1 FDA submission completed in June<br>Fibrinogen ADFIRST trial completed and top line study results H2 Enrollment completed in September<br>Cytotect PreCyssion trial last patient expected H2 Enrollment ongoing<br>Innovation Milestones On Track for H2 2023<br>Performance by Business Unit | Biopharma | Innovation<br>1 As of November 2, 2023<br>Completed On track |
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| Q3 2023 Results - 10 -<br>Category % revenues YTD growth (cc) Drivers<br>NAT Donor<br>Screening 50-55% -2.0%<br> • Extended agreement up to 20 years with CTS in USA; the related price concessions are offset<br>by strong captive plasma volume and tissue and organ donor segment growth<br> • Strong APAC is driven by Instrument sales in Japan and Indonesia<br> • EFS France adverse impact YoY due to volume tender share decrease<br>Blood Typing<br>Solutions 25-30% +6.7%<br> • Strong performance across regions, remarkably in U.S. +15%<br> • Partially offsetting lower sales of GelCards in China<br> • Robust growth in Argentina and the Middle East<br>Recombinant<br>proteins 15-20%<br>+6.2%<br>-15.6%<br>adjusted<br> • Positive one-time true-up from a partner company partially offset by lower JB profits<br> • Signed a 10-year supply agreement with an important partner in the Diagnostic<br>field<br>Blood Typing Solutions Delivers Strong Growth<br>Performance by Business Unit | Diagnostic<br>-7.9%<br>-3.1% cc Q3’23<br>-0.3%<br>+0.9% cc Q3 YTD’23<br>-4.0%<br>Q3 YTD’23 -2.6% cc<br>Adjusted | |
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| Q3 2023 Results - 11 -<br>Maximizing the Value of Our Integrated Portfolio<br>Performance by Business Unit | Bio Supplies<br>Category % revenues YTD growth (cc) Drivers<br>Bio Supplies<br>Biopharma 50-55% +18.7% • Lower cell culture sales driven by subdued demand in Q3’23<br> • New customers driving Grifols legacy business growth<br>Bio Supplies<br>Diagnostic 25-30% +45.9% • Growth driven by broader portfolio from Access acquisition and price increase<br> • Improved margins of blood derived products related to ongoing operational optimization plan<br>Plasma<br>hyperimmune<br>sales to<br>third parties<br>20-25% +7.0% • New contracts driving sales growth<br>-18.4%<br>-14.1% cc Q3’23<br>+22.6%<br>+22.8% cc Q3 YTD’23 | |
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| Q3 2023 Results - 12 -<br>Table of Contents<br>1. Accelerating Profitable Growth<br>2. Performance by Business Unit<br>3. Group Financial Performance<br>4. Final Remarks<br>5. Annex | ||
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| Q3 2023 Results - 13 -<br>Strong Performance Across the Board<br>Group Financial Performance<br>1 Leverage Ratio using net financial Debt and Adjusted EBITDA as per credit agreement definition. For further details, please see the annex.<br>2 Cash flow from operations including CAPEX<br>25.1%<br>(Q3’23 excl. Biotest)<br>Strengthening<br>balance sheet<br>Enhancing<br>profitability<br>(Adj. EBITDA)<br>Growing<br>revenues sustainably<br>+9.0% cc<br>(Q3’23 incl. Biotest)<br>+11.7% cc<br>(Q3 YTD’23 incl. Biotest)<br>23.2%<br>(Q3 YTD’23 excl. Biotest)<br>6.7x1<br>Leverage Ratio<br>(Q3’23 incl. Biotest)<br>+€260m2<br>Operating cash<br>flow increase<br>(YTD Q3’23 vs. Dec’22 incl. Biotest)<br>EUR 1,450m<br>Adj. EBITDA guidance FY23 (incl. Biotest) | ||
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| Q3 2023 Results - 14 -<br>Delivering Positive Double-Digit Revenue Growth<br>Group Financial Performance<br>Strengthening<br>balance sheet<br>Enhancing<br>profitability<br>Growing<br>revenues sustainably<br>BIOPHARMA as the main driver<br>5,417<br>5,703 5,880 5,960 6,013<br>4,355<br>4,644 4,795 4,871 4,971<br>4000.0<br>4500.0<br>5000.0<br>5500.0<br>6000.0<br>6500.0<br>Q3'22 Q4'22 Q1'23 Q2'23 Q3'23<br>Total revenue LTM (excl. Biotest)<br>Biopharma revenue LTM (excl. Biotest)<br>+11%<br>FY23<br>Guidance<br>On track<br>to achieve<br>Q3 Q3 YTD’23 LTM (EUR in millions)<br>Total<br>revenue<br>(incl. Biotest)<br> €1,597m<br>+9.0% cc<br>+3.7%<br> €4,822m<br>+11.7% cc<br>+10.8%<br>+14.5% cc<br>Q3 YTD’23<br>(incl. Biotest)<br>Solid underlying<br>demand<br>Strong double-digit IG<br>performance, with<br>SCIG +48% YTD<br>Ex-US strategy<br>delivered strong<br>growth<br>Mid single digit<br>price increases<br>+10-12%cc<br>(Biopharma<br>+12-14%cc) | ||
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| Q3 2023 Results - 15 -<br>Capturing Cost Savings Plan and Operational Efficiencies<br>Group Financial Performance<br>Gross Margin SG&A (% of total revenues)<br>-120bps<br>37.0%<br>35.7%<br>37.1%<br>38.6%<br>41.0%<br>Q3'22 Q4'22 Q1'23 Q2'23 Q3'23<br>+400bps<br>Significant increase of Biopharma gross margin<br> • Positive product mix, with IG and strong adoption of SCIG<br> • Mid-single-digit price increases in key proteins<br> • Plasma supply and volumes continue to grow sustainably<br> • 22% CPL reduction from the peak in July’22 (9-months lag to GM impact)<br> • Positive impact from operational leverage<br> • Operational efficiencies through streamlined organization<br> • Benefiting from scale and automation<br>Note: Gross margin and SG&A are adjusted figures. Refer to Annex for further detail<br>Strengthening<br>balance sheet<br>Enhancing<br>profitability<br>Growing<br>revenues sustainably<br>19.2%<br>19.7%<br>19.0%<br>17.7%<br>18.0%<br>Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 | ||
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| Q3 2023 Results - 16 -<br>Sequential EBITDA Margin Expansion Accelerates up to 25%+<br>Group Financial Performance<br>Q3 Q3 YTD’23 LTM (EUR in millions)<br>1,040<br>1,174<br>1,220<br>1,272<br>1,336<br>21.0%<br>20.3%<br>21.0%<br>23.4%<br>25.1%<br>19.0%<br>20.0%<br>21.0%<br>22.0%<br>23.0%<br>24.0%<br>25.0%<br>26.0%<br>27.0%<br>28.0%<br>29.0%<br>350.00<br>550.00<br>750.00<br>950.00<br>1150.00<br>1350.00<br>1550.00<br>Q3'22 Q4'22 Q1'23 Q2'23 Q3'23<br>Adjusted EBITDA LTM (excl. Biotest)<br>Adjusted EBITDA Margin quarterly (excl. Biotest)<br>+28%<br>On track<br>to achieve<br>upper range<br>Strengthening<br>balance sheet<br>Enhancing<br>profitability<br>Growing<br>revenues sustainably<br> €374m<br>25.1%<br> €1,028m<br>23.2%<br>Strong business performance<br>Operational improvement plan<br>through €450m cash cost savings<br>Operational leverage<br>FY23<br>Guidance<br>Adj.<br>EBITDA<br>(excluding<br>Biotest)<br>Main drivers<br>EUR<br>1,450m | ||
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| Q3 2023 Results - 17 -<br>Revenue Growth Guidance Reaffirmed and EBITDA at EUR 1,450m<br>Group Financial Performance | FY23 Guidance<br>Proforma EBITDA<br>annualizing savings<br>(excl. Biotest)<br>EBITDA Adjusted<br>(incl. Biotest)<br>EUR<br>1,400-1,450m<br>EUR<br>1,700-1,750m<br>28-29%<br>Strengthening<br>balance sheet<br>Enhancing<br>profitability<br>Growing<br>revenues sustainably<br>EUR<br>1,750m<br>28-29%<br>EUR<br>1,450m<br>Previous Updated<br>H2’23<br>(excl. Biotest) 24-25% 25%<br>FY23<br>(excl. Biotest) 24% 24%+<br>Biopharma<br>12-14% cc<br>(incl. Biotest)<br>Total<br>10-12% cc<br>(incl. Biotest)<br>Revenue<br>Adjusted EBITDA<br>Previous Updated | |
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| Q3 2023 Results - 18 -<br>EBITDA Improvement and Accelerated Deleveraging<br>Group Financial Performance<br>Growing<br>revenues sustainably<br>Enhancing<br>profitability<br>Strengthening<br>balance sheet<br>Cash and cash<br>equivalents<br> €0.5bn<br>Liquidity<br> €1.1bn+<br>Operating cash flow<br>improvement<br>(YTD Q3’23 vs. Dic’22<br>incl. Biotest)<br>+€260m<br>Leverage ratio<br>FY24E<br>0.4x<br>LTM Q2’22 EBITDA LTM Q4’22 LTM Q3’23<br>improvement<br>FY22<br>EBITDA<br>improvement<br>Q3’23<br>4.0x<br>9.0x<br>1.9x<br>7.1x 6.7x<br>2.7x<br>EBITDA<br>improvement<br>and inorganic<br>deleveraging | ||
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| Q3 2023 Results - 19 -<br>Table of Contents<br>1. Accelerating Profitable Growth<br>5. Annex<br>2. Performance by Business Unit<br>3. Group Financial Performance<br>4. Final Remarks | ||
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| Q3 2023 Results - 20 -<br>Q3 2023<br>Adj. EBITDA margin<br>2022 25.1%<br>EBITDA margin<br>20.1%<br>H1 2023<br>Adj. EBITDA margin<br>22.2%<br>Adj. EBITDA margin<br>proforma annualizing<br>savings<br>28-29%<br>FY 2023<br>Enhance donor<br>experience<br>Focus on core<br>businesses<br>Global<br>market maker<br>and shaper<br>Continuous<br>business<br>optimization<br>Accelerate<br>innovation<br>New markets and<br>business models<br>Shifting from Strengthened Fundamentals to Accelerating<br>Profitable and Sustainable Growth<br>Final Remarks<br>Upskilling our talent to build a world class management team<br>Solid and sustainable financials<br>Driven by 6 strategic levers<br>Note: EBITDA excluding Biotest | ||
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| Q3 2023 Results - 21 -<br>Table of Contents<br>1. Accelerating Profitable Growth<br>2. Performance by Business Unit<br>3. Group Financial Performance<br>5. Annex<br>5.1. Financials<br>4. Final Remarks | ||
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| Q3 2023 Results - 22 -<br>Revenue | Q3 2023<br>Annex<br>* Constant currency (cc) excludes exchange rate fluctuations over the period.<br>In thousands of euros Reported At cc* Reported At cc*<br>Revenue by Business Unit 1,487,992 109,490 1,597,482 1,433,365 107,766 1,541,131 3.8% 9.6% 3.7% 9.0%<br>Biopharma 1,258,174 109,490 1,367,664 1,157,415 107,766 1,265,181 8.7% 14.9% 8.1% 13.7%<br>Diagnostic 156,282 - 156,282 169,620 - 169,620 (7.9%) (3.1%) (7.9%) (3.1%)<br>Bio Supplies 36,057 - 36,057 44,214 - 44,214 (18.4%) (14.1%) (18.4%) (14.1%)<br>Others & intersegments 37,479 - 37,479 62,116 - 62,116 (39.7%) (37.9%) (39.7%) (37.9%)<br>Revenue by Country 1,487,992 109,490 1,597,482 1,433,365 107,766 1,541,131 3.8% 9.6% 3.7% 9.0%<br>US + CANADA 969,662 546 970,208 993,706 954 994,660 (2.4%) 3.9% (2.5%) 3.8%<br>E U 232,215 57,209 289,424 210,998 57,052 268,050 10.1% 10.4% 8.0% 8.2%<br>ROW 286,115 51,735 337,850 228,661 49,760 278,421 25.1% 33.5% 21.3% 28.3%<br>Grifols incl.<br>Biotest<br>Q3 2023 % vs PY<br>Grifols Biotest Grifols incl.<br>Biotest<br>Q3 2022<br>Grifols Biotest<br>Grifols excl. Biotest Grifols incl. Biotest | |
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| Q3 2023 Results - 23 -<br>Revenue | YTD 2023<br>Annex<br>* Constant currency (cc) excludes exchange rate fluctuations over the period.<br>In thousands of euros Reported At cc* Reported At cc*<br>Revenue by Business Unit 4,455,819 366,608 4,822,427 4,145,169 206,053 4,351,222 7.5% 8.4% 10.8% 11.7%<br>Biopharma 3,699,270 366,608 4,065,878 3,372,017 206,053 3,578,070 9.7% 10.6% 13.6% 14.5%<br>Diagnostic 497,771 - 497,771 499,056 - 499,056 (0.3%) 0.9% (0.3%) 0.9%<br>Bio Supplies 118,672 - 118,672 96,767 - 96,767 22.6% 22.8% 22.6% 22.8%<br>Others & intersegments 140,106 - 140,106 177,329 - 177,329 (21.0%) (20.9%) (21.0%) (20.9%)<br>Revenue by Country 4,455,819 366,608 4,822,427 4,145,169 206,053 4,351,222 7.5% 8.4% 10.8% 11.7%<br>US + CANADA 2,891,622 1,450 2,893,072 2,809,524 2,119 2,811,643 2.9% 3.5% 2.9% 3.5%<br>E U 721,338 195,617 916,955 634,287 107,386 741,673 13.7% 13.7% 23.6% 23.6%<br>ROW 842,859 169,541 1,012,400 701,358 96,548 797,906 20.2% 22.8% 26.9% 29.3%<br>YTD 2022 % vs PY<br>Grifols incl.<br>Biotest<br>Grifols excl. Biotest Grifols incl. Biotest<br>Grifols Biotest Grifols incl.<br>Biotest Grifols Biotest<br>YTD 2023 | |
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| Q3 2023 Results - 24 -<br>P&L | Q3 2023<br>Annex<br>Note: We have adjusted under the column "One-offs" to reflect the underlying performance of Grifols' operations and for comparability purposes. These adjustments are related to specific events and are not expected to be repeated periodically. In 2023, it includes:<br>(i) restructuring costs as part of the Operational Improvement Plan announced in February 2023 and accrued a one-time restructuring charge of about EUR 140 million; (ii) M&A transaction costs are mainly related to the transaction in China announced in June<br>2023; (iii) a one-off Diagnostic Division commercial true-up.<br>In thousands of euros<br>Reported One-offs Reported excl.<br>One-offs Reported One-offs Reported excl.<br>One-offs Grifols Biotest Combined Reported Reported excl.<br>One-offs Reported Reported excl.<br>One-offs<br>Net Revenue 1,487,992 1,487,992 109,490 1,597,482 1,597,482 1,433,365 107,765 1,541,130 3.8% 3.8% 3.7% 3.7%<br>Cost of Sales (879,989) 1,690 (878,299) (85,660) (965,649) 1,690 (963,959) (897,141) (84,119) (981,260) (1.9%) (2.1%) (1.6%) (1.8%)<br>Gross Margin 608,003 1,690 609,693 23,830 631,833 1,690 633,523 536,224 23,646 559,870 13.4% 13.7% 12.9% 13.2%<br>% Net revenue 40.9% 41.0% 21.8% 39.6% 39.7% 37.4% 21.9% 36.3%<br>R&D (72,216) 769 (71,447) (16,232) (88,448) 769 (87,679) (78,327) (15,287) (93,614) (7.8%) (8.8%) (5.5%) (6.3%)<br>SG&A (279,838) 11,346 (268,492) (20,478) (300,316) 11,346 (288,970) (274,580) (18,243) (292,823) 1.9% (2.2%) 2.6% (1.3%)<br>Operating Expenses (352,054) 12,115 (339,939) (36,710) (388,764) 12,115 (376,649) (352,907) (33,530) (386,437) (0.2%) (3.7%) 0.6% (2.5%)<br>Other Income - - - - - 14,678 - 14,678 - - (100%) 0.0%<br> 7,519 7,519 - 7,519 7,519 13,276 - 13,276 (43.4%) (43.4%) (43.4%) (43.4%)<br>OPERATING RESULT (EBIT) 263,468 13,805 277,273 (12,880) 250,588 13,805 264,393 211,271 (9,884) 201,387 24.7% 31.2% 24.4% 31.3%<br>% Net revenue 17.7% 18.6% (11.8%) 15.7% 16.6% 14.7% (9.2%) 13.1%<br>Financial Result (137,781) (137,781) (13,155) (150,936) (150,936) (110,592) (4,238) (114,830) 24.6% 24.6% 31.4% 31.4%<br> (65) (65) - (65) (65) (64) - (64) 1.6% 1.6% 1.6% 1.6%<br>PROFIT BEFORE TAX 125,622 13,805 139,427 (26,035) 99,587 13,805 113,392 100,615 (14,122) 86,493 24.9% 38.6% 15.1% 31.1%<br>% Net revenue 8.4% 9.4% (23.8%) 6.2% 7.1% 7.0% (13.1%) 5.6%<br>Income Tax Expense (31,406) (3,451) (34,857) 25,826 (5,580) (3,451) (9,031) (25,822) (1,498) (27,320) 21.6% 35.0% (79.6%) (66.9%)<br>% of pre-tax income 25.0% 25.0% 99.2% 5.6% 8.0% 25.7% (10.6%) 31.6%<br>CONSOLIDATED PROFIT 94,216 10,354 104,570 (209) 94,007 10,354 104,361 74,793 (15,620) 59,173 26.0% 39.8% 58.9% 76.4%<br>Results Attributable to Non-Controlling Interests (34,602) (183) (34,785) 138 (34,464) (183) (34,647) (18,863) 4,249 (14,614) 83.4% 84.4% 135.8% 137.1%<br>GROUP PROFIT 59,614 10,171 69,785 (71) 59,543 10,171 69,714 55,930 (11,371) 44,559 6.6% 24.8% 33.6% 56.5%<br>% Net revenue 4.0% 4.7% (0.1%) 3.7% 4.4% 3.9% (10.6%) 2.9%<br>% vs PY<br>Grifols incl. Biotest<br>Q3 2023<br>Biotest<br>Grifols excl. Biotest<br>Q3 2022<br>Share of Results of Equity Accounted Investees<br>Share of Results of Equity Accounted Investees - Core Activities<br>Grifols excl. Biotest Grifols excl. Biotest Grifols incl. Biotest | |
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| Q3 2023 Results - 25 -<br>P&L | YTD 2023<br>Annex<br>Note: We have adjusted under the column "One-offs" to reflect the underlying performance of Grifols' operations and for comparability purposes. These adjustments are related to specific events and are not expected to be repeated periodically. In 2023, it includes:<br>(i) restructuring costs as part of the Operational Improvement Plan announced in February 2023 and accrued a one-time restructuring charge of about EUR 140 million; (ii) M&A transaction costs are mainly related to the transaction in China announced in June<br>2023; (iii) a one-off Diagnostic Division commercial true-up.<br>In thousands of euros<br>Reported One-offs Reported excl.<br>One-offs Reported One-offs Reported excl.<br>One-offs Grifols Biotest Combined Reported Reported excl.<br>One-offs Reported Reported excl.<br>One-offs<br>Net Revenue 4,455,819 (18,830) 4,436,989 366,609 4,822,428 (18,830) 4,803,598 4,145,169 206,053 4,351,222 7.5% 7.0% 10.8% 10.4%<br>Cost of Sales (2,731,145) 28,689 (2,702,456) (286,543) (3,017,688) 28,689 (2,988,999) (2,560,026) (158,775) (2,718,801) 6.7% 5.6% 11.0% 9.9%<br>Gross Margin 1,724,674 9,859 1,734,533 80,065 1,804,740 9,859 1,814,599 1,585,143 47,278 1,632,421 8.8% 9.4% 10.6% 11.2%<br>% Net revenue 38.7% 39.1% 21.8% 37.4% 37.8% 38.2% 22.9% 37.5%<br>R&D (223,594) 5,810 (217,784) (58,103) (281,697) 5,810 (275,887) (229,853) (25,043) (254,896) (2.7%) (5.3%) 10.5% 8.2%<br>SG&A (946,067) 133,496 (812,571) (67,409) (1,013,476) 133,496 (879,980) (827,912) (32,800) (860,712) 14.3% (1.9%) 17.7% 2.2%<br>Operating Expenses (1,169,661) 139,306 (1,030,355) (125,512) (1,295,173) 139,306 (1,155,867) (1,057,765) (57,843) (1,115,608) 10.6% (2.6%) 16.1% 3.6%<br>Other Income - - - - - - 19,186 - 19,186 - - (100%) (100.0%)<br> 35,047 35,047 - 35,047 - 35,047 92,735 - 92,735 (62.2%) (62.2%) (62.2%) (62.2%)<br>OPERATING RESULT (EBIT) 590,060 149,165 739,225 (45,447) 544,614 149,165 693,779 639,299 (10,565) 628,734 (7.7%) 15.6% (13.4%) 10.3%<br>% Net revenue 13.2% 16.7% (12.4%) 11.3% 14.4% 15.4% (5.1%) 14.4%<br>Financial Result (389,773) (389,773) (35,281) (425,054) - (425,054) (306,065) (7,518) (313,583) 27.3% 27.3% 35.5% 35.5%<br> (927) (927) - (927) - (927) (770) - (770) 20.4% 20.4% 20.4% 20.4%<br>PROFIT BEFORE TAX 199,360 149,165 348,525 (80,728) 118,633 149,165 267,798 332,464 (18,083) 314,381 (40.0%) 4.8% (62.3%) (14.8%)<br>% Net revenue 4.5% 7.9% (22.0%) 2.5% 5.6% 8.0% (8.8%) 7.2%<br>Income Tax Expense (49,840) (37,317) (87,157) 34,141 (15,699) (37,317) (53,016) (75,850) (2,745) (78,595) (34.3%) 14.9% (80.0%) (32.5%)<br>% of pre-tax income 25.0% 25.0% 42.3% 13.2% 19.8% 22.8% (15.2%) 25.0%<br>CONSOLIDATED PROFIT 149,520 111,848 261,368 (46,585) 102,934 111,848 214,782 256,614 (20,828) 235,786 (41.7%) 1.9% (56.3%) (8.9%)<br>Results Attributable to Non-Controlling Interests (101,403) 3,981 (97,422) 1,791 (99,612) 3,981 (95,631) (53,154) 5,577 (47,577) 90.8% 83.3% 109.4% 101.0%<br>GROUP PROFIT 48,117 115,829 163,946 (44,795) 3,322 115,829 119,151 203,460 (15,251) 188,209 (76.4%) (19.4%) (98.2%) (36.7%)<br>% Net revenue 1.1% 3.7% (12.2%) 0.1% 2.5% 4.9% (7.4%) 4.3%<br>% vs PY<br>Grifols excl. Biotest<br>Biotest<br>Grifols incl. Biotest Grifols excl. Biotest Grifols incl. Biotest<br>Share of Results of Equity Accounted Investees - Core Activities<br>Share of Results of Equity Accounted Investees<br>Grifols incl. Biotest<br>YTD 2023 YTD 2022 | |
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| Q3 2023 Results - 26 -<br>Cash Flow | Q3 2023<br>Annex<br>Note: We have made adjustments to reflect the underlying performance of Grifols' operations and for comparability purposes. These adjustments are caused due to a unique event and are not expected to be repeated periodically. In 2023, it includes: (i) restructuring<br>costs as part of the Operational Improvement Plan, which was announced in February 2023 and accrued a one-time restructuring charge of about EUR 140 million; (ii) M&A transaction costs are mainly related to the transaction in China announced in June 2023; (iii)<br>a one-off Diagnostic Division commercial true-up.<br>Q3 2022<br>Grifols incl. Biotest<br>In thousands of euros Reported Restructuring costs Transaction costs Diagnostic true-up<br>commercial Total one-offs Reported excl.<br>One-offs Reported Total one-offs Reported excl.<br>One-offs Reported Reported Reported excl.<br>One-offs<br>Reported Group Profit 59,614 (184) 10,353 - 10,169 69,783 (71) 59,543 10,169 69,712 44,559 34% 56%<br>Depreciation and Amortization 94,319 (558) - - (558) 93,761 12,641 106,960 (558) 106,402 103,861 3 % 2 %<br>Net Provisions 22,253 16,183 - - 16,183 38,436 (2,984) 19,269 16,183 35,452 (11,243) -271% -415%<br>Other Adjustments and Other Changes in Working Capital 106,380 184 3,452 - 3,636 110,016 (25,103) 81,277 3,636 84,913 25,733 216% 230%<br>Change in Operating Working Capital (98,179) 3,353 (7,812) (18,830) (23,289) (121,468) (13,238) (111,417) (23,289) (134,706) (272,789) -59% -51%<br> Changes in Inventories (107,912) - - - - (107,912) (32,529) (140,441) - (140,441) (246,529) -43% -43%<br> Change in Trade Receivables 15,782 - - (18,830) (18,830) (3,048) 21,306 37,088 (18,830) 18,258 18,690 98% -2%<br> Change in Trade Payables (6,049) 3,353 (7,812) - (4,459) (10,508) (2,015) (8,064) (4,459) (12,523) (44,950) -82% -72%<br>Net Cash Flow From Operating Activities 184,387 18,978 5,993 (18,830) 6,141 190,528 (28,755) 155,632 6,141 161,773 (109,879) -242% -247%<br>Business Combinations and Investments in Group Companies (48,705) - - - - (48,705) - (48,705) - (48,705) 11,782 -513% -513%<br>CAPEX (38,175) - - - - (38,175) (7,085) (45,260) - (45,260) (80,024) -43% -43%<br>R&D/Other Intangible Assets (15,392) - - - - (15,392) (5,579) (20,971) - (20,971) (8,631) 143% 143%<br>Other Cash Inflow / (Outflow) 25,942 - - - - 25,942 (33,890) (7,949) - (7,949) 39,112 -120% -120%<br>Net Cash Flow From Investing Activities (76,330) - - - - (76,330) (46,554) (122,885) - (122,885) (37,761) 225% 225%<br>Free Cash Flow 108,057 18,978 5,993 (18,830) 6,141 114,198 (75,309) 32,747 6,141 38,888 (147,640) -122% -126%<br>Issue / /Repayment) of Debt (87,434) - - - - (87,434) 8,159 (79,275) - (79,275) - - -<br>Capital Grants 3 4 - - - - 3 4 - 3 4 - 3 4 48,589 -100% -100%<br>Dividends (Paid) / Received - - - - - - - - - - 6,198 -100% -100%<br>Other Cash Flows From / (Used in) Financing Activities 153 - - - - 153 (290) (137) - (137) 2,191 -106% -106%<br>Interco transactions and investments in Group and related companies (70,507) - - - - (70,507) 70,507 - - - -<br>Net Cash Flow From Financing Activities (157,754) - - - - (157,754) 78,376 (79,378) - (79,378) 56,977 -239% -239%<br>Total Cash Flow (49,697) 18,978 5,993 (18,830) 6,141 (43,556) 3,067 (46,631) 6,141 (40,490) (90,663) -49% -55%<br>Cash and Cash Equivalents at the Beginning of the Year 455,048 - - - - 455,048 68,304 523,352 - 523,352 525,094 0 % 0 %<br>Effect of Exchange Rate Changes in Cash and Cash Equivalents 7,522 - - - - 7,522 (17) 7,505 - 7,505 45,149 -83% -83%<br>Cash and Cash Equivalents at the End of the Period 412,873 18,978 5,993 (18,830) 6,141 419,014 71,354 484,226 6,141 490,367 479,580 1 % 2 %<br>Q3 2023 % vs PY<br>Grifols excl. Biotest<br>Biotest<br>Grifols incl. Biotest Grifols incl. Biotest | |
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| Q3 2023 Results - 27 -<br>Cash Flow | YTD 2023<br>Annex<br>Note: We have made adjustments to reflect the underlying performance of Grifols' operations and for comparability purposes. These adjustments are caused due to a unique event and are not expected to be repeated periodically. In 2023, it includes: (i) restructuring<br>costs as part of the Operational Improvement Plan, which was announced in February 2023 and accrued a one-time restructuring charge of about EUR 140 million; (ii) M&A transaction costs are mainly related to the transaction in China announced in June 2023; (iii)<br>a one-off Diagnostic Division commercial true-up.<br>YTD 2022<br>Grifols incl. Biotest<br>In thousands of euros Reported Restructuring costs Transaction costs Diagnostic true-up<br>commercial Total one-offs Reported excl.<br>One-offs Reported Total one-offs Reported excl.<br>One-offs Reported Reported Reported excl.<br>One-offs<br>Reported Group Profit 48,117 103,960 21,302 (9,432) 115,830 163,947 (44,795) 3,322 115,830 119,152 188,209 -98% -37%<br>Depreciation and Amortization 283,887 (558) - - (558) 283,329 49,501 333,388 (558) 332,830 291,069 15% 14%<br>Net Provisions 97,326 (17,929) - - (17,929) 79,397 (2,216) 95,110 (17,929) 77,181 (1,076) -8939% -7273%<br>Other Adjustments and Other Changes in Working Capital 50,184 35,634 7,101 (9,398) 33,337 83,521 (19,803) 30,381 33,337 63,718 (42,225) -172% -251%<br>Change in Operating Working Capital (328,006) (18,610) (7,812) - (26,422) (354,428) (82,298) (410,304) (26,422) (436,726) (514,324) -20% -15%<br> Changes in Inventories (245,507) - - - - (245,507) (93,160) (338,667) - (338,667) (474,970) -29% -29%<br> Change in Trade Receivables (45,312) - - - - (45,312) (3,246) (48,558) - (48,558) (26,120) 86% 86%<br> Change in Trade Payables (37,187) (18,610) (7,812) - (26,422) (63,609) 14,108 (23,079) (26,422) (49,501) (13,234) 74% 274%<br>Net Cash Flow From Operating Activities 151,508 102,497 20,591 (18,830) 104,258 255,766 (99,611) 51,897 104,258 156,155 (78,347) -166% -299%<br>Business Combinations and Investments in Group Companies (48,705) - - - - (48,705) - (48,705) - (48,705) (1,533,264) -97% -97%<br>CAPEX (110,009) - - - - (110,009) (20,660) (130,669) - (130,669) (203,999) -36% -36%<br>R&D/Other Intangible Assets (47,951) - - - - (47,951) (13,691) (61,642) - (61,642) (27,697) 123% 123%<br>Other Cash Inflow / (Outflow) (27,507) - - - - (27,507) 12,767 (14,740) - (14,740) (69,853) -79% -79%<br>Net Cash Flow From Investing Activities (234,172) - - - - (234,172) (21,584) (255,756) - (255,756) (1,834,813) -86% -86%<br>Free Cash Flow (82,664) 102,497 20,591 (18,830) 104,258 21,594 (121,195) (203,859) 104,258 (99,601) (1,913,160) -89% -95%<br>Issue / /Repayment) of Debt 130,545 - - - - 130,545 5,655 136,200 - 136,200 - - -<br>Capital Grants 1,401 - - - - 1,401 - 1,401 - 1,401 (398,842) -100% -100%<br>Dividends (Paid) / Received - - - - - - - - - - 10,125<br>Other Cash Flows From / (Used in) Financing Activities 2,258 - - - - 2,258 (290) 1,968 - 1,968 13,007 -85% -85%<br>Interco transactions and investments in Group and related companies (70,507) - - - - (70,507) 70,507 - - - - - -<br>Net Cash Flow From Financing Activities 63,697 - - - - 63,697 75,872 139,569 - 139,569 (375,710) -137% -137%<br>Total Cash Flow (18,967) 102,497 20,591 (18,830) 104,258 85,291 (45,323) (64,290) 104,258 39,968 (2,288,870) -97% -102%<br>Cash and Cash Equivalents at the Beginning of the Year 431,337 - - - - 431,337 116,642 547,979 - 547,979 2,675,611 -80% -80%<br>Effect of Exchange Rate Changes in Cash and Cash Equivalents 504 - - - - 504 3 3 537 - 537 92,840 -99% -99%<br>Cash and Cash Equivalents at the End of the Period 412,874 102,497 20,591 (18,830) 104,258 517,132 71,352 484,226 104,258 588,484 479,581 1 % 23%<br>Q3 YTD 2023<br>Grifols excl. Biotest<br>Biotest<br>Grifols incl. Biotest<br>% vs PY<br>Grifols incl. Biotest | |
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| Q3 2023 Results - 28 -<br>Balance Sheet | Q3 2023<br>Annex<br>In thousands of euros<br>September 2023 December 2022<br> 17,049,130 16,880,390<br> 10,876,233 10,858,608<br> 3,278,650 3,270,937<br> 1,947,015 1,955,177<br> 650,280 620,745<br> 296,952 174,923<br> 5,015,368 4,653,587<br> - 4,969<br> 3,486,683 3,201,357<br> 41,302 35,154<br> 866,728 738,651<br> 59,410 43,663<br> 77,019 81,814<br> 484,226 547,979<br> 22,064,498 21,533,977<br> Cash and Cash Equivalents<br> Goodwill and Other Intangible Assets<br> Property Plant & Equipment<br>Assets<br>Non-Current Assets<br>Total Assets<br>Current Assets<br> Inventories<br> Current Contract Assets<br> Other Current Financial Assets<br> Non-Current Contract Assets Held for Sale<br> Trade and Other Receivables<br> Investments in Equity Accounted Investees<br> Non-Current Financial Assets<br> Other Non-Current Assets<br> Other Current Assets<br>In thousands of euros<br>September 2023 December 2022<br> 8,568,690 8,457,544<br> 119,604 119,604<br> 910,728 910,728<br> 4,528,856 4,326,436<br> Treasury Stock (158,692) (162,220)<br> 3,322 208,279<br> 723,260 727,111<br> 2,441,612 2,327,606<br> 11,470,749 11,120,586<br> 10,299,444 9,960,562<br> 1,171,305 1,160,024<br> 2,025,059 1,955,847<br> 757,246 795,686<br> 1,267,813 1,160,161<br> 22,064,498 21,533,977<br> Other Current Liabilities<br>Total Equity and Liabilities<br> Other Comprehensive Income<br> Non-Controllling Interests<br>No-Current Liabilities<br> Non-Current Financial Liabilities<br> Other Non-Current Liabilities<br> Share Premium<br> Reserves<br> Current Year Earnings<br>Current Liabilities<br> Current Financial Liabilities<br> Capital<br>Equity<br>Liabilities | |
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| Q3 2023 Results - 29 -<br>Gross Margin to Adjusted Gross Margin Excl. Biotest<br>SG&A as % of Sales to Adjusted SG&A as % of Sales Excl. Biotest<br>Annex<br>Note: We have adjusted to reflect the underlying performance of Grifols' Gross Margin and SG&A for comparability purposes. These adjustments are made due to specific events and are not expected to be repeated periodically. It includes: (i) restructuring costs as<br>part of the Operational Improvement Plan, which was announced in February 2023 and accrued a one-time restructuring charge of about EUR 140 million; (ii) M&A transaction costs are mainly related to the transaction in China announced in June 2023.<br>Gross Margin<br>In millions of euros except ratio. Stand-Alone 3Q23 2Q23 1Q23 4Q22 3Q22<br>Net Revenue 1,487,992 1,523,577 1,444,250 1,557,559 1,433,365<br>Cost of Sales (879,989) (936,596) (914,560) (1,001,244) (902,460)<br>Gross Margin Reported 608,003 586,981 529,689 556,315 530,904<br> Reestructuring costs 1,690 1,597 6,572 - -<br>Gross Margin Adjusted 609,693 588,579 536,261 556,315 530,904<br>% Net revenue 41.0% 38.6% 37.1% 35.7% 37.0%<br>SG&A<br>In millions of euros except ratio. Stand-Alone 3Q23 2Q23 1Q23 4Q22 3Q22<br>Net Revenue 1,487,992 1,523,577 1,444,250 1,557,559 1,433,365<br>SG&A Reported (279,838) (276,281) (389,948) (307,498) (274,580)<br> Reestructuring costs (2,458) (2,869) 114,032 - -<br> Transaction costs 13,804 10,083 905 - -<br>SG&A Adjusted (268,492) (269,067) (275,011) (307,498) (274,580)<br>% Net revenue 18.0% 17.7% 19.0% 19.7% 19.2% | ||
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| Q3 2023 Results - 30 -<br>EBIT to Adjusted EBITDA Excl. Biotest<br>Annex<br>Note: Reported EBITDA measures operating results plus D&A of the period. Adjusted EBITDA is a more comprehensive measure of Grifols's operating profitability as it excludes restructuring and transaction costs that are non-recurring, divestment gains, and<br>impairments. We have made adjustments to reflect the underlying performance of Grifols and for comparability purposes. These adjustments are caused due to specific events and are not expected to be repeated periodically. It includes (i) restructuring costs as part<br>of the Operational Improvement Plan, which was announced in February 2023 and accrued a one-time restructuring charge of about EUR 140 million; (ii) M&A transaction costs are mainly related to the transaction in China announced in June 2023; (iii) a one-off<br>Diagnostic Division commercial true-up; (iv) impairments of certain assets; (v) other non-recurring items.<br>Miles de euros<br> 263,468 251,243 75,348 173,747 763,806 211,271<br> (96,336) (94,936) (98,296) (102,226) (391,794) (98,047)<br> - - - - - -<br>EBITDA Reportado 359,804 346,180 173,644 275,973 1,155,601 309,318<br>% Ingresos netos 24.2% 22.7% 12.0% 17.7% 19.6% 21.6%<br>Costes de restructuración - - 139,427 26,231 165,658 5,655<br>Costes de transacción 13,762 9,735 4,515 696 28,708 505<br>Diagnostic commercial true-up - - (18,830) - (18,830) -<br>Ganancias por desinversión - - - - - (14,678)<br>Impairments - - - 2,700 2,700 -<br>Otras partidas no recurrentes - - - 10,487 10,487 -<br>Total ajustes 13,762 9,735 125,112 40,114 188,723 (8,518)<br>EBITDA Ajustado 373,566 355,915 298,756 316,087 1,344,324 300,800<br>% Ingresos netos 25.1% 23.4% 21.0% 20.3% 22.9% 21.0%<br>Depreciación y amortización<br>RESULTADO DE LA EXPLOTACION (EBIT)<br>3T 2023 2T 2023 1T 2022 4T 2022 3T 2022<br>3T 2023<br>LTM | ||
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| Q3 2023 Results - 31 -<br>EBITDA Bridge Excl. Biotest | Q3 YTD’22 – Q3 YTD’23<br>Annex<br>858<br>880<br>206<br>30 23<br>148<br>39<br>Diagnostic FX<br>17<br>Adjusted EBITDA<br>Q3 YTD’23<br>Adjusted EBITDA<br>Q3 YTD’22<br>Biopharma Bio Supplies<br>20<br>Opex Others<br>19<br>One-offs Reported EBITDA<br>Q3 YTD’23<br>9<br>1,028<br>+170m<br>+20% 23.2%<br>20.7%<br>Includes the EUR 140m restructuring charge, EUR (19)m one-off in<br>Diagnostic revenues commercial true-up and EUR 27m transaction costs Note: the variations of Biopharma, Diagnostic and Bio Supplies refer only to Gross margin<br>(EUR in millions)<br>Mainly G&A savings<br>from the Operational<br>Improvement Plan<br>Expenses related<br>to higher sales and<br>commercial efforts | |
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| Q3 2023 Results - 32 -<br>EBIT to Adjusted EBITDA Incl. Biotest<br>Annex<br>Note: Reported EBITDA measures operating results plus D&A of the period. Adjusted EBITDA is a more comprehensive measure of Grifols's operating profitability as it excludes restructuring and transaction costs that are non-recurring, divestment gains, and<br>impairments. We have made adjustments to reflect the underlying performance of Grifols and for comparability purposes. These adjustments are caused due to specific events and are not expected to be repeated periodically. It includes (i) restructuring costs as part<br>of the Operational Improvement Plan, which was announced in February 2023 and accrued a one-time restructuring charge of about EUR 140 million; (ii) M&A transaction costs are mainly related to the transaction in China announced in June 2023; (iii) a one-off<br>Diagnostic Division commercial true-up; (iv) impairments of certain assets; (v) Biotest Next Level (BNL) is a one-off project aimed to increase production capacity in Dreieich, Germany, and develop three key R&D projects (IgG Next Gen, Trimodulin, Fibrinogen) (vi)<br>other non-recurring items.<br>Miles de euros<br> 250,588 243,396 50,629 176,947 721,560 201,387<br> (108,976) (107,581) (122,511) (117,406) (456,474) (106,973)<br> - 0 0 0 - -<br>EBITDA Reportado 359,564 350,977 173,140 294,353 1,178,034 308,360<br>% Ingresos netos 22.5% 21.1% 11.1% 17.2% 18.0% 20.0%<br>Costes de restructuración - - 139,427 26,231 165,658 5,655<br>Costes de transacción 13,762 9,735 4,515 696 28,708 505<br>Diagnostic commercial true-up - - (18,830) - (18,830) -<br>Ganancias por desinversión - - - - - (14,678)<br>Impairments - - - 2,700 2,700 -<br>Proyecto Biotest Next Level - - - 13,482 13,482 22,341<br>Otras partidas no recurrentes - - - 10,487 10,487 -<br>Total ajustes<br> - - - - - -<br>EBITDA Ajustado 373,326 360,712 298,252 347,949 1,380,239 322,183<br>% Ingresos netos 23.4% 21.7% 19.3% 20.3% 21.2% 20.9%<br>Depreciación y amortización<br>4T 2022<br>3T 2023<br>LTM 3T 2022<br>RESULTADO DE LA EXPLOTACION (EBIT)<br>3T 2023 2T 2023 1T 2022 | ||
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| Q3 2023 Results - 33 -<br>Leverage Ratio and Adj. EBITDA LTM as per Credit Agreement<br>Annex<br>Note:. Net financial Debt as per credit agreement is the definition stated in Grifols's Credit Agreement and is the amount by which Grifols’ total financial liabilities exceed cash and cash equivalents, excluding the impact of IFRS 16, which specifies how an IFRS<br>reporter will recognize, measure, present and disclose leases. As of September 2023, the impact of IFRS 16 on total debt is EUR 1,032.6 million. As per the Credit Agreements, it includes some adjustments due to specific events and is not expected to be repeated<br>periodically. It includes (i) the impact of the IFRS 16; (ii) restructuring costs as part of the Operational Improvement Plan, which was announced in February 2023 and accrued a one-time restructuring charge of about EUR 140 million; (ii) Cost-saving operating<br>improvements and synergies represent the adjusted effect of bringing the annualized effect of cost savings from the operational restructuring plan that we will have next year to the present year's financials; (iii) M&A transaction costs are mainly related to the<br>transaction in China announced in June 2023; (vi) other non-recurring items.<br>In millions of euros except ratio. Including Biotest Q3'23 Q2'23 Q1'23 Q4'22 Q3'22 Q2'22<br>Non-Current Financial Liabilities 10,299 10,203 9,999 9,961 10,397 10,104<br>Non-recurrent Lease Liabilities (IFRS16) (928) (890) (884) (915) (1,058) (1,006)<br>Current Financial Liabilities 757 733 761 796 586 484<br>Recurrent Lease Liabilities (IFRS16) (104) (101) (99) (102) (65) (62)<br>Cash and Cash Equivalents (484) (523) (426) (548) (480) (525)<br>Net Financial Debt as per Credit Agreement 9,540 9,422 9,351 9,191 9,381 8,994<br>In million of euros LTM Q3'23 LTM Q2'23 LTM Q1'23 FY 2022 LTM Q3'22 LTM Q2'22<br>OPERATING RESULT (EBIT) 722 672 694 806 668 559<br>Depreciation & Amortization (456) (454) (447) (415) (399) (386)<br>Reported EBITDA 1,178 1,127 1,142 1,221 1,067 945<br>IFRS 16 (103) (101) (102) (100) (91) (85)<br>Restructuring costs 165 171 174 3 6 4 6 4 0<br>Transaction costs 3 1 1 9 2 8 2 6 2 5 2 9<br>Cost savings, operating improvements and synergies on a "run rate" 121 121 9 2 100 3 4 6 8<br>Other one-offs 2 4 2 4 4 4 6 6<br>Total adjustments 238 234 194 6 6 2 0 5 8<br>Adjusted EBITDA LTM as per Credit Agreement 1,416 1,361 1,336 1,287 1,087 1,003<br>Leverage Ratio as per Credit Agreeement 6.7x 6.9x 7.0x 7.1x 8.6x 9.0x | ||
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| Q3 2023 Results - 34 -<br>Net Revenue Reconciliation Constant Currency Excl. Biotest | Q3 2023<br>Annex<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported Net Revenues 1,487,992 1,433,365 3.8%<br>Variation due to Exchange Rate Effects 82,394<br>Net Revenues at Constant Currency 1,570,386 1,433,365 9.6%<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported Biopharma Revenues 1,258,174 1,157,415 8.7%<br>Variation due to Exchange Rate Effects 71,268<br>Reported Biopharma Net Revenues at Constant Currency 1,329,442 1,157,415 14.9%<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported U.S. + Canada Net Revenues 969,662 993,706 (2.4%)<br>Variation due to Exchange Rate Effects 62,461<br>Reported U.S. + Canada Net Revenues at Constant Currency 1,032,123 993,706 3.9%<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported EU Net Revenues 232,215 210,998 10.1%<br>Variation due to Exchange Rate Effects 693<br>Reported EU Net Revenues at Constant Currency 232,908 210,998 10.4%<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported ROW Net Revenues 286,115 228,661 25.1%<br>Variation due to Exchange Rate Effects 19,240<br>Reported ROW Net Revenues at Constant Currency 305,355 228,661 33.5% | |
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| Q3 2023 Results - 35 -<br>Net Revenue Reconciliation Constant Currency Excl. Biotest | Q3 YTD 2023<br>Annex<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported Net Revenues 4,455,819 4,145,169 7.5%<br>Variation due to Exchange Rate Effects 35,898<br>Net Revenues at Constant Currency 4,491,717 4,145,169 8.4%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported Biopharma Revenues 3,699,270 3,372,017 9.7%<br>Variation due to Exchange Rate Effects 29,707<br>Reported Biopharma Net Revenues at Constant Currency 3,728,977 3,372,017 10.6%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported U.S. + Canada Net Revenues 2,891,622 2,809,524 2.9%<br>Variation due to Exchange Rate Effects 17,469<br>Reported U.S. + Canada Net Revenues at Constant Currency 2,909,091 2,809,524 3.5%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported EU Net Revenues 721,338 634,287 13.7%<br>Variation due to Exchange Rate Effects (9)<br>Reported EU Net Revenues at Constant Currency 721,329 634,287 13.7%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported ROW Net Revenues 842,859 701,358 20.2%<br>Variation due to Exchange Rate Effects 18,438<br>Reported ROW Net Revenues at Constant Currency 861,297 701,358 22.8% | |
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| Q3 2023 Results - 36 -<br>Net Revenue Reconciliation Constant Currency Incl. Biotest | Q3 2023<br>Annex<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported Net Revenues 1,597,482 1,541,130 3.7%<br>Variation due to Exchange Rate Effects 82,207<br>Net Revenues at Constant Currency 1,679,689 1,541,130 9.0%<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported Biopharma Net Revenues 1,367,664 1,265,180 8.1%<br>Variation due to Exchange Rate Effects 71,081<br>Reported Biopharma Net Revenues at Constant Currency 1,438,745 1,265,180 13.7%<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported Diagnostic Net Revenues 156,283 169,620 (7.9%)<br>Variation due to Exchange Rate Effects 8,061<br>Reported Diagnostic Net Revenues at Constant Currency 164,344 169,620 (3.1%)<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported Bio Supplies Net Revenues 36,057 44,214 (18.4%)<br>Variation due to Exchange Rate Effects 1,939<br>Reported Bio Supplies Net Revenues at Constant Currency 37,996 44,214 (14.1%)<br>Note: Bio Supplies figures for Q3 2022 differ from Note 5 of the June 2023 Interim Financial Statements as the Directors' Reports<br>discloses management information<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported Others & Intersegments Net Revenues 37,478 62,116 (39.7%)<br>Variation due to Exchange Rate Effects 1,126<br>Reported Other & Intersegments Net Revenues at Constant Currency 38,604 62,116 (37.9%)<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported U.S. + Canada Net Revenues 970,208 994,660 (2.5%)<br>Variation due to Exchange Rate Effects 62,461<br>Reported U.S. + Canada Net Revenues at Constant Currency 1,032,669 994,660 3.8%<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported EU Net Revenues 289,424 268,050 8.0%<br>Variation due to Exchange Rate Effects 489<br>Reported EU Net Revenues at Constant Currency 289,913 268,050 8.2%<br>In thousands of euros Q3 2023 Q3 2022 % Var<br>Reported ROW Net Revenues 337,850 278,420 21.3%<br>Variation due to Exchange Rate Effects 19,257<br>Reported ROW Net Revenues at Constant Currency 357,107 278,420 28.3% | |
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| Q3 2023 Results - 37 -<br>Net Revenue Reconciliation Constant Currency Incl. Biotest | Q3 YTD 2023<br>Annex<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported Net Revenues 4,822,427 4,351,222 10.8%<br>Variation due to Exchange Rate Effects 36,632<br>Net Revenues at Constant Currency 4,859,059 4,351,222 11.7%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported Biopharma Net Revenues 4,065,878 3,578,070 13.6%<br>Variation due to Exchange Rate Effects 30,440<br>Reported Biopharma Net Revenues at Constant Currency 4,096,318 3,578,070 14.5%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported Diagnostic Net Revenues 497,771 499,056 (0.3%)<br>Variation due to Exchange Rate Effects 5,786<br>Reported Diagnostic Net Revenues at Constant Currency 503,557 499,056 0.9%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported Bio Supplies Net Revenues 118,672 96,767 22.6%<br>Variation due to Exchange Rate Effects 186<br>Reported Bio Supplies Net Revenues at Constant Currency 118,858 96,767 22.8%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported Others & Intersegments Net Revenues 140,106 177,329 (21.0%)<br>Variation due to Exchange Rate Effects 220<br>Reported Other & Intersegments Net Revenues at Constant Currency 140,326 177,329 (20.9%)<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported U.S. + Canada Net Revenues 2,893,072 2,811,643 2.9%<br>Variation due to Exchange Rate Effects 17,469<br>Reported U.S. + Canada Net Revenues at Constant Currency 2,910,541 2,811,643 3.5%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported EU Net Revenues 916,955 741,673 23.6%<br>Variation due to Exchange Rate Effects 27<br>Reported EU Net Revenues at Constant Currency 916,982 741,673 23.6%<br>In thousands of euros YTD 2023 YTD 2022 % Var<br>Reported ROW Net Revenues 1,012,400 797,906 26.9%<br>Variation due to Exchange Rate Effects 19,136<br>Reported ROW Net Revenues at Constant Currency 1,031,536 797,906 29.3% | |
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| Q3 2023 Results - 38 -<br>Definition of Non-GAAP Measures and Constant Currency<br>Annex<br> • Adjusted EBITDA is defined as EBITDA, excluding one-offs and items related to unique events and are not expected to be repeated periodically and<br>not, including restructuring and transaction costs. It provides a useful measure for period-to-period comparisons of the business, as it is not indicative of<br>Grifols’ ongoing operating performance.<br> • Adjusted EBITDA LTM as per Credit Agreement is defined as net income on a consolidated basis for the Group, plus (i) all financial results, (ii) any<br>losses on ordinary course hedging obligations, (iii) any foreign currency translation, transaction or exchange losses, (iv) any loss of any equity-accounted investee, (v) tax expense, (vi) depreciation, (vii) amortization, write-offs, write-downs, and other non-cash charges, losses and expenses, (viii)<br>impairment of intangibles, (ix) non-recurring losses, (x) transactions costs, (xi) extraordinary, unusual, or non-recurring charges and expenses including<br>transition, restructuring and “carveout” expenses, (xii) any costs and expenses relating to the Issuer’s potential or actual issuance of Equity Interests and<br>(xiii) the amount of cost savings, adjustments, operating expense reductions, operating improvements and synergies, in each case on a “run rate” basis<br>and in connection with acquisitions, investments, restructurings, business optimization projects and other operational changes and initiatives; less (i)<br>interest income, (ii) non-recurring gains, (iii) any income or gains on ordinary course hedging obligations (iv) foreign currency translation, transaction or<br>exchange gains and (v) any income of any equity-accounted investee, in each case, for the last 12 months.<br> • Adjusted EBITDA LTM is defined as Adjusted EBITDA related to the last 12 months.<br> • Adjusted Gross Margin is defined as gross margin, excluding the effect of non-cash expenses and non-recurring items not indicative of our ongoing<br>operating performance, including restructuring and transaction costs.<br> • Adjusted Selling general and administrative expenses (SG&A) comprise all direct and indirect selling costs, operational overhead costs, and<br>administrative expenses unrelated to production excluding the effect of non-cash expenses and non-recurring items not indicative of our ongoing<br>operating performance, including restructuring and transaction costs. | ||
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| Q3 2023 Results - 39 -<br>Definition of Non-GAAP Measures and Constant Currency<br>Annex<br> • Constant currency (cc) excludes exchange rate fluctuations over the period.<br> • EBIT measures profitability and reflects earnings before accounting for interest expenses and income taxes. EBIT is calculated by subtracting a<br>company's operating and operating expenses from its total revenue.<br> • EBITDA is defined as operating result (EBIT), excluding depreciation of property, plant and equipment, depreciation of right-of-use assets, amortization<br>of intangible assets, and impairments of property, plant and equipment, right-of-use assets and of intangible assets. It is used to evaluate the<br>company's results over time, allowing it to be compared with other companies in the sector.<br> • EBITDA LTM is defined as EBITDA related to the last 12 months.<br> • Impairment is defined as a permanent reduction in the value of the company asset. It may be a fixed asset or an intangible asset.<br> • Last twelve months (LTM)<br> • Net financial debt as per the Credit Agreement is the definition stated in Grifols´s Credit Agreement and it is defined as the amount by which Grifols's<br>total financial liabilities exceed its total financial assets, including cash and cash equivalents. It excludes the impact of IFRS 16, which specifies how an<br>IFRS reporter will recognize, measure, present and disclose leases. | ||
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| Q3 2023 Results - 40 -<br>Investor Relations<br> & Sustainability<br>+34 93 571 02 21<br>investors@grifols.com<br>sustainability@grifols.com<br>inversores@grifols.com<br>sostenibilidad@grifols.com | ||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
| Grifols, S.A. | ||
|---|---|---|
| By: | /s/ David I. Bell | |
| Name: | David I. Bell | |
| Title: | Authorized Signatory |
Date: November 2, 2023