Grifols, S.a. Class A · BME:GRF
Grifols, S.a. Class A — Merger or Acquisition (September 2021)
25 slides from Grifols, S.a. Class A's merger presentation, Sep 17, 2021
Slide 1: Inside information notice: investor and analyst meeting
Grifols, S.A. Avinguda de la Generalitat 152-158 08174 Sant Cugat del Vallès Barcelona - ESPAÑA Tel. [34] 935 710 500 Fax [34] 935 710 267 www.grifols.com Pursuant to the provisions of article 226 of the Consolidated Text of the Securities Market Act, approved by the Legislative Royal Decree 4/2015,
Slide 2: Grifols Biotest AG Investment
Grifols Biotest AG Investment
Slide 3: Disclaimer and forward-looking statements
- 2 - Biotest AG Investment This presentation and our discussions during this conference call does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Law (Royal Legislative Decree 4/2015, of 23 October, as amended
Slide 4: Our Focus in Bioscience: Plasma as an Essential Asset
- 3 - Biotest AG Investment Our Focus in Bioscience: Plasma as an Essential Asset Bioscience Global pioneer in the production of essential plasma-derived therapies Diagnostic A leader in transfusion medicine, from donation to transfusion Hospital Advances in pharmacy specialty products for hospital
Slide 5: Successful Track Record to Support Growth
- 4 - Biotest AG Investment Successful Track Record to Support Growth IBBI (+51%) Haema Biotest US 24 plasma centers Medkeeper (51%) Hologic NAT Screening Access Biologicals (49%) & GigaGen (44%) Kiro (+40%) & Kedplasma IBBI (49%) Progenika (+30%) Alkahest (45%) Taiwan & Indonesia Novartis Diagnosti
Slide 6: Organic and inorganic expansion while diversifying plasma sourcing
- 5 - Biotest AG Investment Organic and inorganic expansion while diversifying plasma sourcing Planning to open ~20 centers/year over the next 3-4 years Recent acquisitions and plasma supply agreements to strengthen existing network: +50 centers and 1.7ML/year capacity Targeting 520 plasma centers b
Slide 7: Plasma Economics and Revenue per Liter Boosted by Innovation
- 6 - Biotest AG Investment Fibrin Sealant AT-III Alpha 1 AT IgG FVIII Albumin Revenue Per Liter 0% 100% % of plasma utilization Plasma Economics and Revenue per Liter Boosted by Innovation and Commercial Efforts Plasma cost R&D and commercial expansion • Current portfolio focused on three key prote
Slide 8: Biotest: A Transformational Investment
- 7 - Biotest AG Investment Biotest: A Transformational Investment Unique opportunity to launch two new plasma proteins in the short-term, significantly improving revenue per liter and margins Significant revenue and cost synergies leading to a highly accretive investment with incremental EBITDA of
Slide 9: Biotest Delivers +16% Strong Revenue Growth in 2020
- 8 - Biotest AG Investment Biotest Delivers +16% Strong Revenue Growth in 2020 and a Solid Upward EBITDA Trend 75 92 100 108 19.7% 22.9% 23.9% 22.3% 0,00% 5,00% 10,00% 15,00% 20,00% 25,00% 30,00% 0 20 40 60 80 100 120 2017A 2018A 2019A 2020A Revenue Trend (in EUR million) Adjusted EBITDA1 and Margi
Slide 10: Complementary Business to Boost Performance
- 9 - Biotest AG Investment Complementary Business to Boost Performance • Founded in 1909 as a family business • Leading player in global plasma-derivatives industry with a solid track record in plasma sourcing • Proven ability to grow businesses both organically and through M&A • Plasma, manufactur
Slide 11: Biotest's Compelling Innovative Phase III Pipeline
- 10 - Biotest AG Investment Plasma protein Indication Therapeutic area Phase Expected market launch Estimated market size Fibrinogen Congenital Haematology Phase III completed 2023/2024 Acquired Phase III 2023/2024 IgM Severe Community-acquired Pneumonia (sCAP) Infectious diseases Phase III in prep
Slide 12: Combined Pipeline: Minor Overlap Leads to Perfect Fit
- 11 - Biotest AG Investment Combined Pipeline: Minor Overlap Leads to Perfect Fit Discovery Pre-Clinical Phase 1 Phase 2 Phase 3 Phase 4 / Regulatory LCM Immunology 2 GRI programs 1 GIGA program rSCIG Spike in PdIG with enriched libraries (PID) SCIG/IVIG SIDs-CLL IVIG-PEG Xembify® Europe Xembify® P
Slide 13: Plasma Economics and Revenue per Liter Boosted by Innovation
- 12 - Biotest AG Investment Fibrin Sealant AT-III Alpha 1 AT IgG FVIII Albumin Revenue Per Liter 0% 100% % of plasma utilization Plasma Economics and Revenue per Liter Boosted by Innovation and Commercial Efforts Plasma cost R&D and commercial expansion • Current portfolio focused on three key prot
Slide 14: Combined Portfolio to Enhance Plasma Economics Through 2 Novel Proteins
- 13 - Biotest AG Investment Combined Portfolio to Enhance Plasma Economics Through 2 Novel Proteins • Stronger and broader commercial portfolio through addition of two breakthrough proteins, IgM and Fibrinogen • New proteins to be obtained from currently unused intermediate product • Targeting of s
Slide 15: Expanding and Diversifying Plasma Sourcing By Adding 26 European Plasma Centers
- 14 - Biotest AG Investment Expanding and Diversifying Plasma Sourcing By Adding 26 European Plasma Centers +43 +11 +25 +7 Q4 2020 Q1 2021 Q2 2021 Through SRAAS 301 41+ 47 +9 Germany 1 Austria Czech Republic +6 Hungary 7 +11 Plasma supply Revenue footprint Innovation + + Enhancing Egypt’s healthcar
Slide 16: Increasing Revenue Footprint in EMEA
- 15 - Biotest AG Investment Increasing Revenue Footprint in EMEA U.S. 67% Europe 16% RoW 17% Europe 60% Middle East, Africa and France 23% Intercontinental 17% Operations in 100+ countries Subsidiaries in 30+ countries + Operations in 90+ countries Subsidiaries in 10 countries Plasma supply Revenue
Slide 17: Enhanced Revenue Growth and Margin Expansion by Adding Two New Proteins
- 16 - Biotest AG Investment IgM 111 4 2021 7 Fibrinogen 2026 100 Cost per liter Combined gross margin Gross margin at present Enhanced Revenue Growth and Margin Expansion by Adding Two New Proteins Without Incremental Plasma Costs 45% >50% (Base 2021=100) Grifols’ Revenue per Liter
Slide 18: How Adding New Proteins Impacts Revenues, COGS and Gross Margin
- 17 - Biotest AG Investment How Adding 2 New Proteins Impacts Revenues, COGS and Gross Margin Improved Plasma Economics Enhances Profitability 2025 2021 2022 2023 2024 2026 10% Gross Margin Revenue 6% COGS CAGR21-26 Organic growth & new proteins Organic growth only New proteins Boost gross margin P
Slide 19: Revenue and Cost Synergies Resulting in a Highly Accretive Investment
- 18 - Biotest AG Investment Revenue and Cost Synergies Resulting in a Highly Accretive Investment 138 294 New product contributions OpEx synergies 10 109 Biotest EBITDA 65 OpEx synergies New product contributions 2026 ~€310m ~€305m OpEx synergies R&D costs savings CAPEX €65m of cost savings startin
Slide 20: Revenue and Cost Synergies Will Drive EBITDA to €2.8bn
- 19 - Biotest AG Investment €0.3bn €0.2bn €0.3bn Revenue and Cost Synergies Will Drive EBITDA to €2.8bn and Margin to 32%+ in 2026 0.2 €2.8bn 0.2 New product contributions and incremental OpEx synergies 2024 Grifols & Biotest organic contribution €1.7bn 2026 Contribution from latest plasma acquisit
Slide 21: Highly Committed to Achieving Rapid Deleveraging
- 20 - Biotest AG Investment Highly Committed to Achieving Rapid Deleveraging A B Note: Leverage metrics presented on a pre-IFRS16 basis. IFRS16 impact on Grifols EBITDA assumed to remain at 2020A level of €63m throughout the forecast period. IFRS16 impact on Biotest EBITDA assumed to remain at LTM
Slide 22: Transaction Highlights
- 21 - Biotest AG Investment Transaction Highlights • The transaction values Biotest’s Equity at ~€1.6 billion and Enterprise Value at ~€2 billion • Grifols offers c.€800 million for the c.90% of Biotest ordinary shares and c.1% of Biotest preferred shares, plus €310 million loan • The offer include
Slide 23: Grifols and Biotest Marking a New Milestone While Shaping the Plasma Industry
- 22 - Biotest AG Investment Grifols and Biotest Marking a New Milestone While Shaping the Plasma Industry Significant value creation opportunity Incremental EBITDA of €300m in 2024 and €600m in 2026 Revenues €7bn+ EBITDA €2bn+ Leverage <3.5x EBITDA Mg >30% €0.6bn Grifols LTM Jun-21 Underlying EBITD
Slide 24: Biotest AG Investment
Biotest AG Investment “The right to live in society entails the duty to work to improve it” Josep Antoni Grífols i Roig, Founder Advancing towards increasing global plasma-derived therapies availability, while introducing novel plasma therapies to meet new patients’ needs around the world
Slide 25: Investor Relations & Sustainability
Investor Relations & Sustainability +34 93 571 02 21 inversores@grifols.com sostenibilidad@grifols.com investors@grifols.com sustainability@grifols.com