45 slides from Grifols, S.a. Class A's earnings presentation, Nov 2, 2023
Slide 1: Third Quarter 2023 Results
Page 1 of 5 Third Quarter 2023 Results Grifols accelerates EBITDA margin expansion to 25.1% and further improves its operating performance 1234 Barcelona, Spain, November 02, 2023 – Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS), a global healthcare company and leading manufacturer of plasma-derived medi
Slide 2: Business performance
Page 2 of 5 Business performance Total revenue grew 9.0% at constant currency (cc) in Q3’23 (+3.7% on a reported basis) compared to the same period last year, reaching EUR 1,597 million (+9.6% cc and +3.8% reported excl. Biotest). YTD’23 revenue totalled EUR 4,822 million, 11.7% cc (+10.8%) (+8.4% c
Slide 3: EBITDA, net profit, deleveraging and innovation
Page 3 of 5 EBITDA Adjusted excludes EUR 148 million of one-off charges, including the EUR 140 million of one-time restructuring costs recognized in Q1’23. Reported EBITDA stood at EUR 360 million in Q3’23 and EUR 880 million YTD’23 (EUR 360 million and EUR 884 million including Biotest, respectivel
Slide 4: Conference call
Page 4 of 5 CONFERENCE CALL Grifols will host today a conference call at 1.30pm CET / 8.30am EST on Thursday, November 02, 2023 to discuss its Q3’23 business update. To listen to the webcast and view the Business Update Presentation, visit our web site www.grifols.com/en/investors. Participants are
Slide 5: About Grifols and its listings
Page 5 of 5 The company’s class A shares are listed on the Spanish Stock Exchange, where they are part of the Ibex-35 (MCE:GRF). Grifols non-voting class B shares are listed on the Mercado Continuo (MCE:GRF.P) and on the U.S. NASDAQ through ADRs (NASDAQ:GRFS). For more information about Grifols, ple
Slide 6: Delivering on Commitments: Accelerating Profitable Growth and Deleveraging
Q3 2023 Results - 1 - Delivering on Commitments: Accelerating Profitable Growth and Deleveraging Q3 2023 Results November 2, 2023
Slide 7: Legal Disclaimer
Q3 2023 Results - 2 - Legal Disclaimer Important Information 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 Law (Law 6/2023, of 17 March, as amended and restated
Slide 8: Table of Contents
Q3 2023 Results - 3 - Table of Contents 4. Final Remarks Q3 2023 Results - 3 - 1. Accelerating Profitable Growth 2. Performance by Business Unit 3. Group Financial Performance 5. Annex
Slide 9: Accelerating Profitable Growth While Focused on Deleveraging
Q3 2023 Results - 4 - Accelerating Profitable Growth While Focused on Deleveraging Q3 and YTD’23: Delivering on Commitments Delivered Operational Performance Accelerate growth Planning and execution Lean and cost-effective organization Organic EBITDA improvement Improved cash flows +11.7% cc Revenue
Slide 10: Table of Contents
Q3 2023 Results - 5 - Table of Contents 4. Final Remarks Q3 2023 Results - 5 - 2. Performance by Business Unit 1. Accelerating Profitable Growth 3. Group Financial Performance 5. Annex
Slide 11: Revenue Driven by Double Digit Biopharma Growth
Q3 2023 Results - 6 - Revenue Driven by Double Digit Biopharma Growth Performance by Business Unit Grifols Biotest Grifols incl. Biotest Revenues 4,456 367 4,822 % growth +7.5% +77.9% +10.8% % growth at cc +8.4% +78.3% +11.7% Biopharma 3,699 367 4,065 % growth +9.7% +77.9% +13.6% % growth at cc +10.
Slide 12: IG and Albumin Franchises Growth Accelerates
Q3 2023 Results - 7 - Key protein % revenues YTD growth (cc) Drivers IG 55-60% +14.9% • Higher Xembify® (SCIG) demand in the U.S. • Strong demand and positive pricing in Europe and ROW Albumin 10-15% +17.9% • Higher demand in China • Price increases in China and some EU and LATAM countries Alpha-1 &
Slide 13: Continued CPL Reduction Drives Accelerated Margin Expansion
Q3 2023 Results - 8 - 80 85 90 95 100 105 110 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Continued CPL Reduction Drives Accelerated Margin Expansion Performance by Business Unit | Biopharma | Cost Per Liter Cost per liter (CPL) Base 100 Note: -22% as of Sept’23 compared with July’22 peak. Excludes Bi
Slide 14: Innovation milestones 2023
Q3 2023 Results - 9 - Milestone 2023 timing Status1 Details New Product & Indication Finalize enrollment of the PRECIOSA study H1 Enrollment completed in May (410 subjects) following a successful acceleration plan (avg ~20 pt/mo in the last 12Mo) Alpha-1 AT 15% SC study advancement from single to re
Slide 15: Blood Typing Solutions Delivers Strong Growth
Q3 2023 Results - 10 - Category % revenues YTD growth (cc) Drivers NAT Donor Screening 50-55% -2.0% • Extended agreement up to 20 years with CTS in USA; the related price concessions are offset by strong captive plasma volume and tissue and organ donor segment growth • Strong APAC is driven by Instr
Slide 16: Maximizing the Value of Our Integrated Portfolio
Q3 2023 Results - 11 - Maximizing the Value of Our Integrated Portfolio Performance by Business Unit | Bio Supplies Category % revenues YTD growth (cc) Drivers Bio Supplies Biopharma 50-55% +18.7% • Lower cell culture sales driven by subdued demand in Q3’23 • New customers driving Grifols legacy bus
Slide 17: Table of Contents
Q3 2023 Results - 12 - Table of Contents 1. Accelerating Profitable Growth 2. Performance by Business Unit 3. Group Financial Performance 4. Final Remarks 5. Annex
Slide 18: Strong Performance Across the Board
Q3 2023 Results - 13 - Strong Performance Across the Board Group Financial Performance 1 Leverage Ratio using net financial Debt and Adjusted EBITDA as per credit agreement definition. For further details, please see the annex. 2 Cash flow from operations including CAPEX 25.1% (Q3’23 excl. Biotest)
Slide 19: Delivering Positive Double-Digit Revenue Growth
Q3 2023 Results - 14 - Delivering Positive Double-Digit Revenue Growth Group Financial Performance Strengthening balance sheet Enhancing profitability Growing revenues sustainably BIOPHARMA as the main driver 5,417 5,703 5,880 5,960 6,013 4,355 4,644 4,795 4,871 4,971 4000.0 4500.0 5000.0 5500.0 600
Slide 20: Capturing Cost Savings Plan and Operational Efficiencies
Q3 2023 Results - 15 - Capturing Cost Savings Plan and Operational Efficiencies Group Financial Performance Gross Margin SG&A (% of total revenues) -120bps 37.0% 35.7% 37.1% 38.6% 41.0% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 +400bps Significant increase of Biopharma gross margin • Positive product mix, with
Slide 21: Sequential EBITDA Margin Expansion Accelerates up to 25%+
Q3 2023 Results - 16 - Sequential EBITDA Margin Expansion Accelerates up to 25%+ Group Financial Performance Q3 Q3 YTD’23 LTM (EUR in millions) 1,040 1,174 1,220 1,272 1,336 21.0% 20.3% 21.0% 23.4% 25.1% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 26.0% 27.0% 28.0% 29.0% 350.00 550.00 750.00 950.00 11
Slide 22: Revenue Growth Guidance Reaffirmed and EBITDA at EUR 1,450m
Q3 2023 Results - 17 - Revenue Growth Guidance Reaffirmed and EBITDA at EUR 1,450m Group Financial Performance | FY23 Guidance Proforma EBITDA annualizing savings (excl. Biotest) EBITDA Adjusted (incl. Biotest) EUR 1,400-1,450m EUR 1,700-1,750m 28-29% Strengthening balance sheet Enhancing profitabil
Slide 23: EBITDA Improvement and Accelerated Deleveraging
Q3 2023 Results - 18 - EBITDA Improvement and Accelerated Deleveraging Group Financial Performance Growing revenues sustainably Enhancing profitability Strengthening balance sheet Cash and cash equivalents €0.5bn Liquidity €1.1bn+ Operating cash flow improvement (YTD Q3’23 vs. Dic’22 incl. Biotest)
Slide 24: Table of Contents
Q3 2023 Results - 19 - Table of Contents 1. Accelerating Profitable Growth 5. Annex 2. Performance by Business Unit 3. Group Financial Performance 4. Final Remarks
Slide 25: Shifting from Strengthened Fundamentals to Accelerating Profitable Growth
Q3 2023 Results - 20 - Q3 2023 Adj. EBITDA margin 2022 25.1% EBITDA margin 20.1% H1 2023 Adj. EBITDA margin 22.2% Adj. EBITDA margin proforma annualizing savings 28-29% FY 2023 Enhance donor experience Focus on core businesses Global market maker and shaper Continuous business optimization Accelerat
Slide 26: Table of Contents
Q3 2023 Results - 21 - Table of Contents 1. Accelerating Profitable Growth 2. Performance by Business Unit 3. Group Financial Performance 5. Annex 5.1. Financials 4. Final Remarks
Slide 27: Revenue | Q3 2023
Q3 2023 Results - 22 - Revenue | Q3 2023 Annex * Constant currency (cc) excludes exchange rate fluctuations over the period. In thousands of euros Reported At cc* Reported At cc* 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% Biopharma 1,258,174
Slide 28: Revenue | YTD 2023
Q3 2023 Results - 23 - Revenue | YTD 2023 Annex * Constant currency (cc) excludes exchange rate fluctuations over the period. In thousands of euros Reported At cc* Reported At cc* 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% Biopharma 3,699,2
Slide 29: P&L | Q3 2023
Q3 2023 Results - 24 - P&L | Q3 2023 Annex 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 in
Slide 30: P&L | YTD 2023
Q3 2023 Results - 25 - P&L | YTD 2023 Annex 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 i
Slide 31: Cash Flow | Q3 2023
Q3 2023 Results - 26 - Cash Flow | Q3 2023 Annex 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)
Slide 32: Cash Flow | YTD 2023
Q3 2023 Results - 27 - Cash Flow | YTD 2023 Annex 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)
Slide 33: Balance Sheet | Q3 2023
Q3 2023 Results - 28 - Balance Sheet | Q3 2023 Annex In thousands of euros September 2023 December 2022 17,049,130 16,880,390 10,876,233 10,858,608 3,278,650 3,270,937 1,947,015 1,955,177 650,280 620,745 296,952 174,923 5,015,368 4,653,587 - 4,969 3,486,683 3,201,357 41,302 35,154 866,728 738,651 59
Slide 34: Gross Margin and SG&A to Adjusted
Q3 2023 Results - 29 - Gross Margin to Adjusted Gross Margin Excl. Biotest SG&A as % of Sales to Adjusted SG&A as % of Sales Excl. Biotest Annex Note: We have adjusted to reflect the underlying performance of Grifols' Gross Margin and SG&A for comparability purposes. These adjustments are made due t
Slide 35: EBIT to Adjusted EBITDA Excl. Biotest
Q3 2023 Results - 30 - EBIT to Adjusted EBITDA Excl. Biotest Annex 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,
Slide 36: EBITDA Bridge Excl. Biotest
Q3 2023 Results - 31 - EBITDA Bridge Excl. Biotest | Q3 YTD’22 – Q3 YTD’23 Annex 858 880 206 30 23 148 39 Diagnostic FX 17 Adjusted EBITDA Q3 YTD’23 Adjusted EBITDA Q3 YTD’22 Biopharma Bio Supplies 20 Opex Others 19 One-offs Reported EBITDA Q3 YTD’23 9 1,028 +170m +20% 23.2% 20.7% Includes the EUR 1
Slide 37: EBIT to Adjusted EBITDA Incl. Biotest
Q3 2023 Results - 32 - EBIT to Adjusted EBITDA Incl. Biotest Annex 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,
Slide 38: Leverage Ratio and Adj. EBITDA LTM as per Credit Agreement
Q3 2023 Results - 33 - Leverage Ratio and Adj. EBITDA LTM as per Credit Agreement Annex 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
Slide 39: Net Revenue Reconciliation Constant Currency Excl. Biotest | Q3 2023
Q3 2023 Results - 34 - Net Revenue Reconciliation Constant Currency Excl. Biotest | Q3 2023 Annex In thousands of euros Q3 2023 Q3 2022 % Var Reported Net Revenues 1,487,992 1,433,365 3.8% Variation due to Exchange Rate Effects 82,394 Net Revenues at Constant Currency 1,570,386 1,433,365 9.6% In tho
Slide 40: Net Revenue Reconciliation Constant Currency Excl. Biotest | Q3 YTD 2023
Q3 2023 Results - 35 - Net Revenue Reconciliation Constant Currency Excl. Biotest | Q3 YTD 2023 Annex In thousands of euros YTD 2023 YTD 2022 % Var Reported Net Revenues 4,455,819 4,145,169 7.5% Variation due to Exchange Rate Effects 35,898 Net Revenues at Constant Currency 4,491,717 4,145,169 8.4%
Slide 41: Net Revenue Reconciliation Constant Currency Incl. Biotest | Q3 2023
Q3 2023 Results - 36 - Net Revenue Reconciliation Constant Currency Incl. Biotest | Q3 2023 Annex In thousands of euros Q3 2023 Q3 2022 % Var Reported Net Revenues 1,597,482 1,541,130 3.7% Variation due to Exchange Rate Effects 82,207 Net Revenues at Constant Currency 1,679,689 1,541,130 9.0% In tho
Slide 42: Net Revenue Reconciliation Constant Currency Incl. Biotest | Q3 YTD 2023
Q3 2023 Results - 37 - Net Revenue Reconciliation Constant Currency Incl. Biotest | Q3 YTD 2023 Annex In thousands of euros YTD 2023 YTD 2022 % Var Reported Net Revenues 4,822,427 4,351,222 10.8% Variation due to Exchange Rate Effects 36,632 Net Revenues at Constant Currency 4,859,059 4,351,222 11.7
Slide 43: Definition of Non-GAAP Measures and Constant Currency
Q3 2023 Results - 38 - Definition of Non-GAAP Measures and Constant Currency Annex • Adjusted EBITDA is defined as EBITDA, excluding one-offs and items related to unique events and are not expected to be repeated periodically and not, including restructuring and transaction costs. It provides a usef
Slide 44: Definition of Non-GAAP Measures and Constant Currency
Q3 2023 Results - 39 - Definition of Non-GAAP Measures and Constant Currency Annex • Constant currency (cc) excludes exchange rate fluctuations over the period. • EBIT measures profitability and reflects earnings before accounting for interest expenses and income taxes. EBIT is calculated by subtrac
Slide 45: Investor Relations & Sustainability
Q3 2023 Results - 40 - Investor Relations & Sustainability +34 93 571 02 21 investors@grifols.com sustainability@grifols.com inversores@grifols.com sostenibilidad@grifols.com SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to