53 slides from Grifols, S.a. Class A's earnings presentation, Jul 27, 2023
Slide 1: Half year 2023 Results press release
Page 1 of 5 Half year 2023 Results Grifols delivers 15% revenue growth, accelerates margin expansion in Q2 and raises guidance for FY23 1234 Barcelona, Spain, July 27, 2023 - Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS), a global healthcare company and leading manufacturer of plasma-derived medicines,
Slide 2: Business performance
Page 2 of 5 Business performance Total revenue grew 13.1% cc (+14.8% on a reported basis) compared to the first half of 2022, reaching EUR 3,225 million. The second quarter delivered growths for Biopharma, Diagnostic and Bio Supplies triggering a total growth of 8.8% cc (+7.8%) up to EUR 1,664 milli
Slide 3: Financial performance and leverage
Page 3 of 5 Financial performance and leverage Gross margin increased to 37.6% (36.4% including Biotest) year-to-date. This was driven by a 38.5% margin (37.2% including Biotest) in the second quarter of 2023, up from 36.7% in the previous quarter. The company is beginning to recognize in the P&L th
Slide 4: Raised guidance for 2023
Page 4 of 5 Raised guidance for 2023 Period Previous New REVENUE (at cc) Total revenue growth (incl. Biotest) FY23 8-10% 10-12% Biopharma revenue growth (incl. Biotest) FY23 10-12% 12-14% EBITDA Adjusted Margin (excl. Biotest) H1’23 21%+ 22.2%+ H2’23 23-25% 24-25% FY23 22-24% 24% Adjusted (incl. Bio
Slide 5: About Grifols
Page 5 of 5 About Grifols Grifols is a global healthcare company founded in Barcelona in 1909 committed to improving the health and well-being of people around the world. A leader in essential plasma-derived medicines and transfusion medicine, the company develops, produces, and provides innovative
Slide 6: Successfully Executing and Delivering on Commitments
Q2 2023 Results July 27, 2023 Successfully Executing and Delivering on Commitments
Slide 7: Important Information
Q2 2023 Results - 2 - 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 from time to time
Slide 8: Table of Contents
Q2 2023 Results - 3 - 1. Our Turnaround Strategy 2. Performance by Business Unit 3. Group Financial Performance Table of Contents 4. Final Remarks 5. Annex
Slide 9: Turnaround Strategy: Successfully Executing and Delivering on Commitments
Q2 2023 Results - 4 - Turnaround Strategy Successfully Executing and Delivering on Commitments Strong first half of 2023 backed by excellent execution, financial discipline and reinforced performance culture Operational performance • Double-digit revenues growth driven by Biopharma • Adjusted EBITDA
Slide 10: Table of Contents
Q2 2023 Results - 5 - 1. Our Turnaround Strategy 2. Performance by Business Unit 3. Group Financial Performance Table of Contents 4. Final Remarks 5. Annex
Slide 11: Revenue Growth Driven by Biopharma
Q2 2023 Results - 6 - Performance by Business Unit Revenue Growth Driven by Biopharma 98 185 160 258 257 H1 2022 Biopharma 10 Diagnostic 28 Bio Supplies 14 Others & Intersegments 2,921 H1 2023 (cc) H1 2023 2,968 FX 46 2,810 3,179 3,225 2,712 Grifols excl. Biotest Biotest Grifols incl. Biotest Revenu
Slide 12: Biopharma: Key Plasma Proteins Show Significant Growth
Q2 2023 Results - 7 - Performance by Business Unit | Biopharma (excl. Biotest) Key Plasma Proteins Show Significant Growth Led by Immunoglobulin Alpha-1 & Specialty proteins IG 55-60% of revenues Albumin 10-15% of revenues 25-30% of revenues +6.3% +7.3% cc Q2’23 +10.2% +8.4% cc H1’23 • Strong demand
Slide 13: Biopharma Immunoglobulin: Strengthening Our IG Franchise
Q2 2023 Results - 8 - Performance by Business Unit | Biopharma | Immunoglobulin Strengthening Our IG Franchise to Support Future Performance Strong IG outlook 1 €14bn+ market High-single-digit long-term growth Primary and secondary immunodeficiencies gaining momentum 9-10% growth (2018-2025) 1 1 Sou
Slide 14: Biopharma Innovation: Achieved Milestones
Q2 2023 Results - 9 - Performance by Business Unit | Biopharma | Innovation Achieved Innovation Milestones Expected in H1 and On Track for H2 Completed On track 1 As of July 27, 2023 Moved Milestone 2023 timing Status1 Details New Product & Indication Finalize enrollment of the PRECIOSA study H1 Enr
Slide 15: Diagnostic: Blood Typing Solutions Driving Performance
Q2 2023 Results - 10 - Performance by Business Unit | Diagnostic Blood Typing Solutions Driving Performance +3.3% +5.1% cc Q2’23 +3.7% +3.0% cc H1’23 Reported Adjusted -2.1% -2.4% cc • Extended agreement up to 20 years with CTS; impact on pricing • Partially offset by higher demand in Japan, Indones
Slide 16: Bio Supplies: Integration of Access Biologicals
Q2 2023 Results - 11 - Performance by Business Unit | Bio Supplies Integration of Access Biologicals Continues to Bear Fruit Plasma hyperimmune sales to third parties Bio Supplies Biopharma 50-55% of revenues Bio Supplies Diagnostic 25-30% of revenues 20-25% of revenues • Cell Therapy portfolio expa
Slide 17: Table of Contents
Q2 2023 Results - 12 - Table of Contents 1. Our Turnaround Strategy 3. Group Financial Performance 4. Final Remarks 5. Annex 2. Performance by Business Unit
Slide 18: Group Financial Performance: Exceeded Revenue and EBITDA Guidance
Q2 2023 Results - 13 - Group Financial Performance Exceeded Revenue and EBITDA Guidance Revenues (H1’23) incl. Biotest 6.9x Leverage ratio1 €1.2bn Liquidity +12% Plasma supply3 -20% Cost per liter (CPL)4 €3,225m +14.8%; +13.1% cc (Biopharma +16.7%; +14.9% cc) 1 Consistently calculated based on the c
Slide 19: Strong Second Quarter Supporting Sequential Financial Improvement
Q2 2023 Results - 14 - Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Group Financial Performance Strong Second Quarter Supporting Sequential Financial Improvement • Backed by robust underlying demand, pricing and product mix led by SCIG • Mid-to-high single-digit growth driven by Biopharma, following solid plasma s
Slide 20: Adjusted EBITDA Continues to Expand Driven by Biopharma
Q2 2023 Results - 15 - Adjusted EBITDA Continues to Expand Driven by Biopharma Group Financial Performance | Adjusted EBITDA excl. Biotest H1’23 vs. H1’22 (EUR in millions) Note: the variations of Biopharma, Diagnostic and Bio Supplies refer only to Gross margin 78 135 Biopharma 11 Diagnostic 19 Bio
Slide 21: Operational Improvement Plan: 100% Deployment of EUR 450m+ Savings
Q2 2023 Results - 16 - Group Financial Performance | Operational Improvement Plan Excellent Execution: 100% Deployment of the EUR 450m+ Annualized Cash Cost Savings Initiatives 75% of initiatives are plasma-related, triggering cash savings first and subsequently booked in the P&L, following the 9-mo
Slide 22: Operational Improvement Plan Underpins Further Cost Per Liter Decline
Q2 2023 Results - 17 - 84 89 94 99 104 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 -10% -15% -20% Base 100 Operational Improvement Plan Underpins Further Cost Per Liter Decline Group Financial Performance | Operational Improvement Plan Cost per liter (CPL) Note: all figures compared with July’22 peak; 20% t
Slide 23: Lower Cost per Liter Drives Incremental Margin Expansion
Q2 2023 Results - 18 - 84 89 94 99 104 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Base 100 Lower Cost per Liter Drives Incremental Margin Expansion Group Financial Performance | Operational Improvement Plan Cost per liter (CPL) Adjusted Gross Margin Biopharma (excl. Biotest) Graph for illustrative purposes
Slide 24: EBITDA Improvement and Transactions Support Deleveraging Path
Q2 2023 Results - 19 - EBITDA Improvement and Transactions Support Deleveraging Path Group Financial Performance | Leverage Ratio FY22 LTM H1’23 FY24E 0.2x Deleverage path H1’23 5.0x 7.1x 6.9x 1.9x 1.0x 4.0x Roadmap to deleveraging1 (Leverage ratio) Cash and cash equivalents €0.5bn 1 Leverage ratio
Slide 25: Raising H2'23 and Full Year 2023 Guidance
Q2 2023 Results - 20 - Raising H2’23 and Full Year 2023 Guidance Guidance Revenue (at cc) EBITDA Total revenue growth (incl. Biotest) EBITDA Adjusted Margin (excl. Biotest) EBITDA Adjusted (incl. Biotest) Biopharma revenue growth (incl. Biotest) 23-25% 22-24% EUR 1.4bn+ 10-12% 12-14% 24-25% 24% EUR
Slide 26: Table of Contents
Q2 2023 Results - 21 - Table of Contents 1. Our Turnaround Strategy 4. Final Remarks 5. Annex 2. Performance by Business Unit 3. Group Financial Performance
Slide 27: Final Remarks: Executing on Key Levers in H2'23
• Deliver strong sales growth driven by solid demand on key proteins, product and country mix • Accelerate financial improvement backed by the Operational Improvement Plan • Maintain strong growth on plasma supply; cost per liter (CPL) continues to decline • Excel commercial and innovation execution
Slide 28: Table of Contents
Q2 2023 Results - 23 - Table of Contents 1. Our Turnaround Strategy 2. Performance by Business Unit 3. Group Financial Performance 4. Final Remarks 5. Annex 5.1. Sustainability 5.2. Financials
Slide 29: Our Sustainability Plan Ambition
Sustainability | Our Sustainability Plan Ambition Setting our Sustainability Roadmap and Commitment with SDGs Placing human rights at the core of our practices by integrating the highest ethical standards throughout the supply chain Healthier and wealthier society by advancing social progress, suppo
Slide 30: Donors, Patients and Our People Are at the Core
Q2 2023 Results - 25 - Sustainability | Progress in H1 2023 Donors, Patients and Our People Are at the Core of Our Sustainability * As of June 27, 2023 ~60% women Gender equality 23,600+ people 90+ nationalities Mental Health Policy Designed to prevent, protect and promote employee mental health and
Slide 31: Positive Impact on Environment and Society
Q2 2023 Results - 26 - Sustainability | Progress in H1 2023 Making Steady Progress on Positive Impact on Environment and Society 2023-2026 Environmental Plan Outlines the objectives for this four-year period, with concrete targets assigned to Grifols’ global facilities Main objectives: Emissions Ene
Slide 32: Ethical Leadership is in Our DNA
Q2 2023 Results - 27 - Sustainability | Progress in H1 2023 Ethical Leadership is in Our DNA Grifols has been awarded a Gold Medal by EcoVadis ESG Ratings Integration of ESG factors into purchasing decisions Supplier selection and onboarding qualification includes on ESG performance Supply Chain: Mi
Slide 33: Table of Contents
Q2 2023 Results - 28 - Table of Contents 1. Our Turnaround Strategy 2. Performance by Business Unit 3. Group Financial Performance 4. Final Remarks 5. Annex 5.1. Sustainability 5.2. Financials
Slide 34: Revenue | Q2 2023
Q2 2023 Results - 29 - Revenue | Q2 2023 Annex In thousands of euros Reported At cc* Reported At cc* Revenue by Business Unit 1,523,577 139,881 1,663,458 1,444,613 98,287 1,542,900 5.5% 6.5% 7.8% 8.8% Biopharma 1,267,643 139,881 1,407,524 1,192,095 98,287 1,290,382 6.3% 7.3% 9.1% 10.0% Diagnostic 16
Slide 35: Revenue | H1 2023
Q2 2023 Results - 30 - Revenue | H1 2023 Annex In thousands of euros Reported At cc* Reported At cc* Revenue by Business Unit 2,967,827 257,119 3,224,946 2,711,805 98,287 2,810,092 9.4% 7.7% 14.8% 13.1% Biopharma 2,441,096 257,119 2,698,215 2,214,603 98,287 2,312,890 10.2% 8.4% 16.7% 14.9% Diagnosti
Slide 36: P&L | Q2 2023
Q2 2023 Results - 31 - P&L | Q2 2023 Annex In thousands of euros Reported One-offs Reported excl. One-offs Reported One-offs Reported excl. One-offs Grifols Biotest Combined Reported Reported excl. One-offs Reported Reported excl. One-offs Net Revenue 1,523,577 - 1,523,577 139,881 1,663,458 - 1,663,
Slide 37: P&L | H1 2023
Q2 2023 Results - 32 - P&L | H1 2023 Annex In thousands of euros Reported One-offs Reported excl. One-offs Reported One-offs Reported excl. One-offs Grifols Biotest Combined Reported Reported excl. One-offs Reported Reported excl. One-offs Net Revenue 2,967,827 (18,830) 2,948,997 257,119 3,224,946 (
Slide 38: Cash Flow | Q2 2023
Q2 2023 Results - 33 - Cash Flow | Q2 2023 Annex Q2 2022 Grifols incl. Biotest In thousands of euros Reported Restructuring costs Transaction costs Diagnostic true-up commercial Total one-offs Reported excl. One-offs Reported Total one-offs Reported excl. One-offs Reported Reported Reported excl. On
Slide 39: Cash Flow | H1 2023
Q2 2023 Results - 34 - Cash Flow | H1 2023 Annex 1H 2022 Grifols incl. Biotest In thousands of euros Reported Restructuring costs Transaction costs Diagnostic true-up commercial Total one-offs Reported excl. One-offs Reported Total one-offs Reported excl. One-offs Reported Reported Reported excl. On
Slide 40: Balance Sheet | H1 2023
Q2 2023 Results - 35 - Balance Sheet | H1 2023 Annex In thousands of euros June 2023 December 2022 16,627,972 16,880,390 10,646,776 10,858,608 3,225,684 3,270,937 1,905,591 1,955,177 630,453 620,745 219,468 174,923 4,804,772 4,653,587 - 4,969 3,317,448 3,201,357 44,146 35,154 821,562 738,651 33,883
Slide 41: EBIT to Adjusted EBITDA LTM Excl. Biotest
Q2 2023 Results - 36 - EBIT to Adjusted EBITDA LTM Excl. Biotest | Q2 2023 Annex In thousand of euros 251,243 75,348 173,747 211,271 711,609 266,054 (94,936) (98,296) (102,226) (98,047) (393,505) (93,950) Reported EBITDA 346,180 173,644 275,973 309,318 1,105,115 360,004 % Net revenue 22.7% 12.0% 17.
Slide 42: EBIT to Adjusted EBITDA LTM Incl. Biotest
Q2 2023 Results - 37 - EBIT to Adjusted EBITDA LTM Incl. Biotest | Q2 2023 Annex In thousand of euros 243,396 50,629 176,947 201,387 672,359 265,372 (107,581) (122,511) (117,406) (106,973) (454,472) (100,380) Reported EBITDA 350,977 173,140 294,353 308,360 1,126,831 365,752 % Net revenue 21.1% 11.1%
Slide 43: Reconciliation Group Profit Reported to Adjusted Q2 2023
Q2 2023 Results - 38 - Reconciliation Group Profit Reported to Adjusted | Q2 2023 Annex In thousand of euros Excl. Biotest Incl. Biotest Restructuring costs Transaction costs Diagnostic commercial true-up Amortization of deferred financial expenses Amortization of intangible assets acquired in busin
Slide 44: Reconciliation Group Profit Reported to Adjusted Q2 2022
Q2 2023 Results - 39 - Reconciliation Group Profit Reported to Adjusted | Q2 2022 Annex In thousand of euros Excl. Biotest Incl. Biotest Restructuring costs Transaction costs Divestment gain Amortization of deferred financial expenses Amortization of intangible assets acquired in business combinatio
Slide 45: Reconciliation Group Profit Reported to Adjusted H1 2023
Q2 2023 Results - 40 - Reconciliation Group Profit Reported to Adjusted | H1 2023 Annex In thousand of euros Excl. Biotest Incl. Biotest Restructuring costs Transaction costs Diagnostic commercial true-up Amortization of deferred financial expenses Amortization of intangible assets acquired in busin
Slide 46: Reconciliation Group Profit Reported to Adjusted H1 2022
Q2 2023 Results - 41 - Reconciliation Group Profit Reported to Adjusted | H1 2022 Annex In thousand of euros Excl. Biotest Incl. Biotest Restructuring costs Transaction costs Divestment gain Amortization of deferred financial expenses Amortization of intangible assets acquired in business combinatio
Slide 47: Leverage Ratio and Adj. EBITDA LTM per Credit Agreement
Q2 2023 Results - 42 - Leverage Ratio and Adj. EBITDA LTM as per Credit Agreement | H1 2023 Annex In millions of euros except ratio H1 2023 FY 2022 % Var Net Financial Debt* 9,422 9,191 2.5% Adjusted EBITDA LTM as per Credit Agreement 1,361 1,287 5.7% Leverage Ratio as per Credit Agreeement 6.92x 7.
Slide 48: Net Revenue Reconciliation Constant Currency Excl. Biotest Q2
Q2 2023 Results - 43 - Net Revenue Reconciliation Constant Currency Excl. Biotest | Q2 2023 Annex In thousands of euros Q2 2023 Q2 2022 % Var Reported Net Revenues 1,523,577 1,444,613 5.5% Variation due to Exchange Rate Effects 14,879 Net Revenues at Constant Currency 1,538,456 1,444,613 6.5% In tho
Slide 49: Net Revenue Reconciliation Constant Currency Incl. Biotest Q2
Q2 2023 Results - 44 - Net Revenue Reconciliation Constant Currency Incl. Biotest | Q2 2023 Annex Q2 2023 - NET REVENUE RECONCILIATION CONSTANT CURRENCY In thousands of euros Q2 2023 Q2 2022 % Var Reported Net Revenues 1,663,458 1,542,900 7.8% Variation due to Exchange Rate Effects 15,204 Net Revenu
Slide 50: Net Revenue Reconciliation Constant Currency Excl. Biotest H1
Q2 2023 Results - 45 - Net Revenue Reconciliation Constant Currency Excl. Biotest | H1 2023 Annex In thousands of euros H1 2023 H1 2022 % Var Reported Net Revenues 2,967,827 2,711,805 9.4% Variation due to Exchange Rate Effects (46,496) Net Revenues at Constant Currency 2,921,331 2,711,805 7.7% In t
Slide 51: Net Revenue Reconciliation Constant Currency Incl. Biotest H1
Q2 2023 Results - 46 - Net Revenue Reconciliation Constant Currency Incl. Biotest | H1 2023 Annex In thousands of euros H1 2023 H1 2022 % Var Reported Net Revenues 3,224,946 2,810,092 14.8% Variation due to Exchange Rate Effects (45,575) Net Revenues at Constant Currency 3,179,371 2,810,092 13.1% In
Slide 52: Definition of Non-GAAP Measures and Constant Currency
Q2 2023 Results - 47 - Definition of Non-GAAP Measures and Constant Currency Annex • EBITDA is defined as operating result (EBIT), excluding depreciation of property, plant and equipment, depreciation of right-of-use assets, amortization of intangible assets, and impairments of property, plant and e
Slide 53: Investor Relations & Sustainability
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 be signed on its behal