Grifols, S.A. Q3 FY2024 earnings call

• Updates: Focus on third quarter results, NDA with Brookfield ongoing, CNMV and SEC reviews completed, leadership changes with Thomas Glanzmann as Non-Executive Chairman and Rahul Srinivasan as CFO. - Financial results: Revenue in Q3 was nearly EUR 1.8 billion, adjusted EBITDA EUR 462 million with a margin of nearly 26%, free cash flow EUR 127 million, leverage ratio reduced to 5.1x. - Plasma: Cost per liter continued to decline, focus on improving plasma and manufacturing efficiencies. - Innovation: On track to achieve 2024 innovation milestones, Fibrinogen regulatory process progress, awarded U.S. BARDA contract. - Diagnostic business: Focus on transfusion medicine segments, vision for expansion into clinical diagnostics and internal testing for Biopharma.

In the third quarter, total revenue was nearly EUR 1.8 billion, a 12.4% increase on a constant currency basis. Biopharma was the main growth driver, growing at 12.1% for the quarter and 9.1% year-to-date. The immunoglobulin franchise, including IVIG and subcutaneous IG, showed double-digit growth. Albumin was up 11.7% in Q3 and 10.3% year-to-date on constant currency. Diagnostics saw a 1.3% uptick on a constant currency for the quarter, with blood typing solutions contributing to growth. Revenue contribution: Biopharma's growth was significant, driving the overall revenue increase.

• Expect to meet full-year guidance, Q4 is demanding but focused on strong year-end. - Continued deleveraging, with leverage ratio at 5.1x and expected to continue improving. - Working capital consumption in Q4 for inventory to meet 2025 demand. - Free cash flow on track to breakeven, with focus on achieving guidance.

Q: James Gordon asked about immunoglobulin in CIDP, China market impact, and leverage target.

A: Roland Wandeler commented on immunoglobulin growth in CIDP, Jose Ignacio Abia Buenache noted China business is growing, Rahul Srinivasan said on track to achieve 4.5x net debt to EBITDA target.

Q: Thomas Jones inquired about free cash flow and PRECIOSA study.

A: Jose Ignacio Abia Buenache discussed optimizing cash flow and working capital, Roland Wandeler talked about PRECIOSA study progress.

Q: Jaime Escribano asked about working capital and Q4 EBITDA.

A: Jose Ignacio Abia Buenache and Rahul Srinivasan addressed working capital adjustments and Q4 EBITDA drivers.

Q: Alvaro Lenze Julia asked about RCF extension and free cash flow guidance.

A: Rahul Srinivasan mentioned RCF extension process underway and free cash flow guidance to be provided in next earnings call.

Q: Guilherme Sampaio asked about cash flow guidance and protein growth balance.

A: Jose Ignacio Abia Buenache and Roland Wandeler discussed cash flow guidance timeline and IG growth momentum.