37 slides from Grifols, S.a. Class A's earnings presentation, May 14, 2024
Slide 1: First Quarter 2024 Results
Page 1 of 4 First Quarter 2024 Results Grifols on track to meet full-year guidance and reduce debt12 Barcelona, Spain – May 14, 2024 – Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS), a global healthcare company and leading manufacturer of plasma-derived medicines, today provided a Business Update and rep
Slide 2: Business Segment Performance
Page 2 of 4 Business Segment Performance In the first quarter of 2024, total revenue reached EUR 1,626 million, a year-over-year increase of 5.5% cc (+4.1% reported). Excluding a one-off of EUR 19 million in Diagnostic in the first quarter of 2023, total revenues increased by 6.8% cc. Biopharma reac
Slide 3: Free Cash Flow, Net Debt and FY24 Guidance
Page 3 of 4 In the first quarter, Free Cash Flow was EUR (253) million, a year-to-year decline of EUR 109 million, primarily due to non-recurring impacts in net working capital. Grifols increased its plasma inventory levels to meet expected revenue growth in the upcoming quarters and, simultaneously
Slide 4: Contacts and About Grifols
Page 4 of 4 The transcript and webcast replay of the call will be available on the web site at www.grifols.com/en/investors within 24 hours after the end of the live conference call. INVESTORS: Grifols Investors Relations & Sustainability inversores@grifols.com - investors@grifols.com sostenibilidad
Slide 5: Business Update Q1 2024 Results
Q1 2024 Results - 1 - Business Update Q1 2024 Results May 14, 2024
Slide 6: Legal Disclaimer
Q1 2024 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 Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectu
Slide 7: Agenda
Q1 2024 Results - 3 - 01 Business Update 02 Q1 2024 Financial Review 03 CEO First Impressions 04 FY 2024 Guidance Agenda 05 Key Priorities 06 Annex Thomas Glanzmann Executive Chairman Nacho Abia Chief Executive Officer (CEO)
Slide 8: Business Update Q1 2024 Financial Review
Q1 2024 Results - 4 - Thomas Glanzmann Executive Chairman Business Update Q1 2024 Financial Review
Slide 9: Delivering on Commitments in a Challenging Q1 2024
Q1 2024 Results - 5 - Delivering on Commitments in a Challenging Q1 2024 • Separated ownership from management • To increase number of independent BoD members • Separation of roles between the Executive Chairman and CEO Strengthened corporate governance • Refuted all allegations from short-seller re
Slide 10: Delivering on Commitments in a Challenging Q1 2024 (financing and SRAAS)
Q1 2024 Results - 6 - Delivering on Commitments in a Challenging Q1 2024 • Private offering of €1bn of 7.5% senior secured notes • To redeem 2025 senior unsecured notes • Improved maturity profile Closed €1bn private placement note • Due diligence completed • All regulatory approvals granted • Closi
Slide 11: Q1 2024 Consolidated Financial Highlights
Q1 2024 Results - 7 - Sales growth +5.5% cc1 Q1’24 vs. Q1’23 €1,626m EBITDA Adjusted2 +21% Q1’24 vs. Q1’23 excluding SRAAS Q1’23 contribution3 €350m EBITDA Adjusted margin2 +280bps Q1’24 vs. Q1’23 excluding SRAAS 20% Q1’23 contribution3 21.6% Plasma supply6 +8% vs. Q1’23 Free Cash Flow2 -€109m Q1’24
Slide 12: Biopharma Starts Strong with a 9.4% cc Increase
Q1 2024 Results - 8 - Biopharma Starts Strong with a 9.4% cc Increase, Driving 6.8%1 cc Revenue Growth in Q1 2024 Note: All figures are presented on a consolidated basis (including Biotest), At constant currency (cc), excluding exchange rate fluctuations over the period 1 Excluding one-off in Q1’23
Slide 13: EBITDA Adjusted Margin Increased by 280 bps
Q1 2024 Results - 9 - EBITDA Adjusted Margin Increased by 280 bps vs. Q1 2023 EBITDA Adjusted (in million EUR) 163 310 125 40 11 Q1'23 Q1'24 Non-recurring expenses Reported EBITDA 299 350 18.8% 21.6% excl. SRAAS 20% Q1’23 contribution1 +280pbs SRAAS contribution Gross margin expanded to 38.8% (+320b
Slide 14: Free Cash Flow Mainly Impacted by Non-Recurring Items
Q1 2024 Results - 10 - Free Cash Flow Mainly Impacted by Non-Recurring Items in Net Working Capital EBITDA Adjusted to Free Cash Flow reconciliation (in million EUR) Q1'23 Q1'24 EBITDA Adjusted 298 350 Inventories (143) (130) Receivables (62) (154) Payables 40 (56) Net working capital (166) (339) CA
Slide 15: CEO First Impressions, FY 2024 Guidance, and Key Priorities
Q1 2024 Results - 11 - Nacho Abia Chief Executive Officer (CEO) CEO First Impressions FY 2024 Guidance, and Key Priorities
Slide 16: CEO First Impressions
Q1 2024 Results - 12 - CEO First Impressions 02 05 03 06 01 04 Solid business fundamentals in a fast-growing market Cash flow generation and debt management, the key priority COVID impacts served as a catalyst for evolution and transformation Strategic initiatives in place to support mid and long-te
Slide 17: On Track to FY 2024 Guidance: Revenues and EBITDA Adjusted
Q1 2024 Results - 13 - On Track to FY 2024 Guidance | Revenues and EBITDA Adjusted Outlook FY24 Revenue growth Q1’24 H1’24 H2’24 FY24 Total growth 5.5% cc 5-7% cc 10-12% cc 7%+ cc 1,561 1,663 1,597 1,770 1,626 Q1 Q2 Q3 Q4 2023 2024 EBITDA Adjusted Q1’24 H1’24 H2’24 FY24 EBITDA Adj. €350m ~€750m ~€1,
Slide 18: On Track to FY 2024 Guidance: Free Cash Flow
Q1 2024 Results - 14 - Drivers to achieve FY2024 Guidance Free Cash Flow 2024 includes EUR480m of extraordinary items: On Track to FY 2024 Guidance | Free Cash Flow Extraordinary Growth CAPEX (EUR 370m) • Agreement with ImmunoTek to develop 28 plasma centers which will provide c.1.5m liters of plasm
Slide 19: Plan to Improve Cash Generation in 2024 and Beyond
Q1 2024 Results - 15 - Plan to Improve Cash Generation in 2024 and Beyond EBITDA Continuing to expand EBITDA as the main driver of cash flow generation, along with maintaining financial discipline Investment discipline Capex and M&A Cash Improvement Plan Activated Cash Improvement Plan to increase c
Slide 20: Streamlining the Deleveraging Path
Q1 2024 Results - 16 - Streamlining the Deleveraging Path SRAAS Proceeds 20% of SRAAS disinvestment to be fully use to reduce debt (€1.6bn) EBITDA Increase Driven by revenue growth, product mix, positive impact of the CPL, and operational leverage Q1 2024 Results - 16 - 6.3x 0.4x 0.1x FY23 SRAAS con
Slide 21: Key Priorities
Q1 2024 Results - 17 - Key Priorities Four-pillar strategy anchored on financial discipline… … supported by key focus areas Dedicated to meeting the needs of our patients and customers and serving our donors Commercial operations effectiveness Operational excellence and continuous improvement Innova
Slide 22: Building Blocks for Shareholder Value Creation
Q1 2024 Results - 18 - Building Blocks for Shareholder Value Creation for 2024 and Beyond 01 Robust business and market fundamentals in a growing industry 02 Focus on key priorities, led by FCF, leverage reduction and financial strength 03 Well-invested to further capture commercial and innovation o
Slide 23: Upcoming Events Calendar
Q1 2024 Results - 19 - Agenda Q2 2024 Financial Results July 30, 2024 Investor & Analysts Day 2024 October 10, 2024 Q3 2024 Financial Results November 7, 2024
Slide 24: Annex
Q1 2024 Results - 20 - ANNEX
Slide 25: Delivering on 2024 Innovation Milestones
Q1 2024 Results - 21 - Delivering on 2024 Innovation Milestones Milestone 2024 timing Status Details Alpha-1 AT 15% SC Phase 1/2 Cohort 2 Tx 1: First patient enrolled H1 First patient enrolled in March. Enrollment progressing on track PRECIOSA Last Patient Out – LPLV H1 Enrollment completed in 2023
Slide 26: Revenue | Q1 2024
Q1 2024 Results - 22 - Revenue | Q1 2024 Q1 2024 Q1 2023 In thousands of euros Reported At cc* Revenue by Business Unit 1.625.705 1.561.487 4,1% 5,5% Biopharma 1.394.727 1.290.691 8,1% 9,4% Diagnostic 158.283 176.475 (10,3%) (8,3%) Bio Supplies 31.468 42.265 (25,5%) (24,7%) Others & intersegments 41
Slide 27: P&L | Q1 2024
Q1 2024 Results - 23 - P&L | Q1 2024 In thousands of euros Reported One-offs Reported excl. One-offs Reported One-offs Reported excl. One-offs Reported Reported excl. One-offs Net Revenue 1.625.705 - 1.625.705 1.561.487 (18.830) 1.542.657 4,1% 5,4% Cost of Sales (994.860) 17.562 (977.298) (1.007.048
Slide 28: Cash Flow | Q1 2024
Q1 2024 Results - 24 - Cash Flow | Q1 2024 In thousands of euros Reported Restructuring costs One Off's Adjusted Transaction costs Total one-offs Reported excl. One-offs Reported Reported excl. One-offs Reported Reported excl. One-offs Reported Group Profit 21.418 1.835 12.885 11.489 26.209 47.627 (
Slide 29: Balance Sheet | Q1 2024
Q1 2024 Results - 25 - Balance Sheet | Q1 2024 In thousands of euros Mar-24 Dec-23 15.193.919 14.989.149 10.741.139 10.579.564 3.249.983 3.247.122 532.080 534.970 210.109 176.676 460.608 450.817 6.759.091 6.451.906 1.435.675 1.433.867 3.647.354 3.459.278 45.484 47.751 952.531 767.259 160.379 139.719
Slide 30: EBIT to EBITDA and EBITDA Adjusted
Q1 2024 Results - 26 - EBIT to EBITDA and EBITDA Adjusted In thousand of euros 203.802 254.785 250.588 243.396 952.571 50.629 (106.139) (112.689) (108.976) (107.581) (435.385) (122.511) Reported EBITDA 309.941 367.474 359.564 350.977 1.387.957 173.140 % Net revenue 19,1% 20,8% 22,5% 21,1% 20,9% 11,1
Slide 31: Leverage Ratio as per Credit Agreement
Q1 2024 Results - 27 - Leverage Ratio as per Credit Agreement In millions of euros except ratio. Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 Non-Current Financial Liabilities 9.650 10.034 10.299 10.203 9.999 Non-recurrent Lease Liabilities (IFRS16) (1.026) (1.004) (928) (890) (884) Current Financial Liabilities 1
Slide 32: Leverage Ratio as per Consolidated EBITDA and Net Debt as per Balance Sheet
Q1 2024 Results - 28 - Leverage Ratio as per Consolidated EBITDA and Net Debt as per Balance Sheet In millions of euros except ratio. Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 Non-Current Financial Liabilities 9.650 10.034 10.299 10.203 9.999 Current Financial Liabilities 1.745 1.023 757 733 761 Cash and Cash E
Slide 33: NCI Contributions
Q1 2024 Results - 29 - NCI Contributions Note: All figures are presented on a consolidated basis (including Biotest). In thousand of euros Grupo GDS Grupo Biotest BPC Haema Profit after tax from continuing operations 111.322 (71.484) 54.684 21.515 Income tax expense (38.758) 45.002 (4.655) (3.652) F
Slide 34: FCF Before Extraordinary Items & CAPEX with Interests
Q1 2024 Results - 30 - FCF Before Extraordinary Items & CAPEX with Interests FCF Before Extraordinary Items In millions of euros Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 EBITDA Adjusted 350 442 373 361 298 Changes in working capital (339) 3 (111) (133) (166) CAPEX (38) (79) (45) (43) (43) R&D and IT (22) (24)
Slide 35: Net Revenue Reconciliation at cc | Q1 2024
Q1 2024 Results - 31 - Net Revenue Reconciliation at cc | Q1 2024 In thousands of euros Q1 2024 Q1 2023 % Var Reported Net Revenues 1.625.703 1.561.487 4,1% Variation due to Exchange Rate Effects 21.583 Net Revenues at Constant Currency 1.647.286 1.561.487 5,5% In thousands of euros Q1 2024 Q1 2023
Slide 36: Use of Alternative Performance Measures (APMs)
Q1 2024 Results - 32 - Grifols Use of Alternative Performance Measures (APMs) Grifols' financial statements are prepared in accordance with EU-IFRS and other provisions of the applicable financial reporting framework and include APMs prepared in accordance with the group's financial reporting model,
Slide 37: Investor Relations & Sustainability
Q1 2024 Results - 33 - 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