Q2 2024 Grifols SA Earnings Call

July 30, 2024

Danny Segarra: Hello everyone, and welcome to Grifols Conference Call. Today, we will be sharing our Q2 financial results. Thank you very much for taking the time to join us today. My name is Danny Segarra, and I'm Vice President of Investor Relations and Sustainability. Today, I'm joined by Grifols' Executive Chairman Thomas Glanzmann, Chief Executive Officer Nacho Abia, and Roland Wandeler, President of Biopharma. Today's call will last about an hour, including a 30-minute presentation, followed by a Q&A session. As a reminder, this call is being recorded. All materials used during the call are available on the investor relations website at grifols.com. The transcript and webcast replay will also be available on the investor relations website within 24 hours after this call. Turning to slide two, I will first like to share a disclaimer on forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainties.

Hello everyone and welcome to Grifols conference call.

Today we will be sharing our second quarter financial results. Thank you very much for taking the time to join us today.

Daniel Segarra: My name is Dani Segarra, and I'm Vice President of Investor Relations and Sustainability.

Speaker Change: Today, I'm joined by Grifols Executive Chairman, Thomas Glanzmann, Chief Executive Officer, Nat Shabia, and Roland Wandeler, President of Biopharma.

Speaker Change: Today's call will last about an hour, including a 30-minute presentation followed by a Q&A session.

Speaker Change: As a reminder, this call is being recorded. All materials used during the call are available on the Investor Relations website at Grifols.com.

Unknown: Today we will be sharing our second quarter financial results. Thank you very much for taking the time to join us today. My name is [inaudible] and I'm Vice President of Investor Relations and Sustainability. A transcript and webcast reply will also be available on the Investor Relations website within 24 hours after this call. Turning to slide two, I would first like to share a disclaimer about forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainty. They are only valid on the day of the call, and the company is not under obligation to update or revise them.

Denis Sagara: Hello, everyone, and welcome to Grifols conference call. Today, we will be sharing our Q2 financial results. Thank you very much for taking the time to join us today. My name is Dani Sagara, and I'm Vice President of Investor Relations and Sustainability. Today, I'm joined by Grifols' Executive Chairman, Thomas Glantzman, Chief Executive Officer, Nat Chavia, and Roland Vandeller, President of Biopharma. Today's call will last about an hour, including a 30 minute presentation, followed by a Q&A session. As a reminder, this call is being recorded. All materials used during the call are available on the Investor Relations website at grifols.com. The transcript and webcast reply will also be available on the Investor Relations website within 24 hours after this call. Turning to Slide 2, I will first like to share a disclaimer on forward looking statements. Forward-looking statements are subject to substantial risks and uncertainty. They are only valid on the day of the call, and the company is not under obligation to update or revise them. Grifols' financial statements are prepared in accordance with the EU, IFRS, and other applicable reporting provisions. These include... Alternative performance measures, also known as APMs, prepared under the Group Financial Reporting Model as defined by the Guidelines of the European Securities and Markets Authority. Please note that Grifols Management uses APMs to evaluate its financial performance, cash flow, and financial position as the basis for its operational and strategic decisions. These APMs are prepared for all time periods presented in this document. Thomas will start the presentation with some opening remarks. And then we will transition to Nacho's discussion of the business, the financial results for the quarter, and his key takeaways following his first 100 days as CEO of Grifols. With that, thank you very much again for joining us today. Thomas, please, over to you.

Daniel Segarra: Today, we will be sharing our Q2 financial results. Thank you very much for taking the time to join us today. My name is Dani Segarra, and I'm Vice President of Investor Relations and Sustainability. Today, I'm joined by Grifols' Executive Chairman, Thomas Glanzmann, Chief Executive Officer, Nacho Abia, and Roland Wandeler, President of Biopharma. Today's call will last about an hour, including a 30 minute presentation, followed by a Q&A session. As a reminder, this call is being recorded. All materials used during the call are available on the Investor Relations website at grifols.com. The transcript and webcast reply will also be available on the Investor Relations website within 24 hours after this call. Turning to Slide 2, I will first like to share a disclaimer on forward looking statements. Forward-looking statements are subject to substantial risks and uncertainties. They are only valid on the day of the call, and the company is not under obligation to update or revise them. Grifols' financial statements are prepared in accordance with the EU, IFRS, and other applicable reporting provisions.

Speaker Change: The transcript and webcast reply will also be available on the Investor Relations website within 24 hours after this call.

Speaker Change: Turning to slide two, I would first like to share a disclaimer on forward-looking statements.

Speaker Change: Forward-looking statements are subject to substantial risks and uncertainties.

Danny Segarra: They are only valid on the day of the call, and the company is not under obligation to update or revise them. Grifols' financial statements are prepared in accordance with EU IFRS and other applicable reporting provisions. This includes alternative performance measures, also known as APMs, prepared under the group financial reporting model as defined by the guideline of the European Securities and Markets Authority. Please note that Grifols management uses APMs to evaluate its financial performance, cash flow, and financial position as the basis for its operational and strategic decisions. These APMs are prepared for all time periods presented in this document. Thomas will start the presentation with some opening remarks, and then we will transition to Nacho's discussion on the business, the financial results for the quarter, and his key takeaways following his first 100 days as CEO of Grifols.

Daniel Segarra: As a reminder, this call is being recorded. All materials used during the call are available on the Investor Relations website at grifols.com. The transcript and webcast reply will also be available on the Investor Relations website within 24 hours after this call.

Speaker Change: They are only valid on the day of the call and the company is not under obligation to update or revise them.

Speaker Change: Grifols financial statements are prepared in accordance with EU, IFRS, and other applicable reporting provisions. This includes...

Daniel Segarra: Turning to Slide 2, I will first like to share a disclaimer on forward looking statements. Forward-looking statements are subject to substantial risks and uncertainties. They are only valid on the day of the call, and the company is not under obligation to update or revise them. Grifols' financial statements are prepared in accordance with the EU, IFRS, and other applicable reporting provisions.

Speaker Change: Alternative Performance Measures, also known as APMs, prepared under the Group Financial Reporting Model as defined by the Guidelines of the European Securities and Markets Authority.

Speaker Change: Please note that Grifols Management uses APMs to evaluate its financial performance, cash flow and financial position as the basis for its operational and strategic decisions. These APMs are prepared for all time periods presented in this document.

Daniel Segarra: These include alternative performance measures, also known as APMs, prepared under the Group Financial Reporting Model as defined by the Guidelines of the European Securities and Markets Authority. Please note that Grifols' Management uses APMs to evaluate its financial performance, cash flow, and financial position as the basis for its operational and strategic decisions. These APMs are prepared for all time periods presented in this document. Thomas will start the presentation with some opening remarks. And then we will transition to Nacho's discussion of the business, the financial results for the quarter, and his key takeaways following his first 100 days as CEO of Grifols. With that, thank you very much again for joining us today. Thomas, please, over to you.

Danny Segarra: These APMs are prepared for all time periods presented in this document. Thomas will start the presentation with some opening remarks, and then we will transition to Nacho's discussion on the business, the financial results for the quarter, and his key takeaways following his first 100 days as CEO of Grifols. With that, thank you very much again for joining us today. Thomas, please, over to you.

Unknown: Forward-looking statements are subject to substantial risks and uncertainty. They are only valid on the day of the call, and the company is not under obligation to update or revise them. Grifols' financial statements are prepared in accordance with the EU, IFRS, and other applicable reporting provisions. These include... Alternative performance measures, also known as APMs, prepared under the Group Financial Reporting Model as defined by the Guidelines of the European Securities and Markets Authority. Please note that Grifols Management uses APMs to evaluate its financial performance, cash flow, and financial position as the basis for its operational and strategic decisions. These APMs are prepared for all time periods presented in this document. Thomas will start the presentation with some opening remarks. And then we will transition to Nacho's discussion of the business, the financial results for the quarter, and his key takeaways following his first 100 days as CEO of Grifols. With that, thank you very much again for joining us today. Thomas, please, over to you.

Speaker Change: Thomas will start the presentation with some opening remarks and then we will transition to Nacho's discussion on the business, the financial results for the quarter and his key takeaways following his first 100 days as CEO of Grifols.

Danny Segarra: With that, thank you very much again for joining us today. Thomas, please, over to you.

Speaker Change: With that, thank you very much again for joining us today.

Unknown Executive: Grifols' financial statements are prepared in accordance with the EU, IFRS, and other applicable reporting provisions. These include... Alternative performance measures, also known as APMs, prepared under the Group Financial Reporting Model as defined by the Guidelines of the European Securities and Markets Authority. Please note that Grifols Management uses APMs to evaluate its financial performance, cash flow, and financial position as the basis for its operational and strategic decisions. These APMs are prepared for all time periods presented in this document. Thomas will start the presentation with some opening remarks. And then we will transition to Nacho's discussion of the business, the financial results for the quarter, and his key takeaways following his first 100 days as CEO of Grifols. With that, thank you very much again for joining us today. Thomas, please, over to you.

Thomas Glanzmann: Thank you, Danny, and good evening, afternoon, and morning to all on the call. I appreciate you all dialing in for our Q2 call. Before I turn to the quarter, I would like to comment on two filings. First is the request from the Grifols family shareholders and Brookfield Capital Partners to perform due diligence as a step towards potentially taking Grifols private. The board has responded to the request accordingly to ensure that all shareholders' interests are warranted and protected throughout this process. It has established a transaction committee comprised of independent directors to oversee the due diligence and evaluate any potential future offer. The board has retained Latham & Watkins as legal counsel and Morgan Stanley and Goldman Sachs as financial advisors.

Nacho: Thank you, Danny, and good evening, afternoon, and morning to all on the call. I appreciate you all dialing in for our Q2 call.

Unknown Executive: And then we will transition to Nacho's discussion of the business, the financial results for the quarter, and his key takeaways following his first 100 days as CEO of Grifols. With that, thank you very much again for joining us today. Thomas, please, over to you.

Thomas Glanzmann: Thank you, Danny, and good evening, afternoon, and morning to all on the call. I appreciate you all dialing in for our Q2 call. Before I turn to the quarterly results, I would like to comment on two filings. The first is a request from the Grifols family shareholders and Brookfield Capital Partners to perform due diligence as a step towards potentially taking Grifols private. The Board has responded to the request accordingly to ensure that all shareholders' interests are warranted and protected throughout this process. It has established a Transaction Committee comprised of independent directors to oversee the due diligence and evaluate any potential future offsets. The Board has retained Lethem Watkins as Legal Counsel and Morgan Stanley and Goldman Sachs as Financial Advisors. The board has also agreed on the governance of the potential buyout process, respecting the request of conflicted board members to recuse themselves from any deliberations and decisions related to the request and potential future actions coming out of the due diligence, with the guidance of the advisors. An NDA has been agreed upon, and the due diligence process has been initiated. At this time, and I want to be clear, there is no offer, agreement, or decision regarding a potential transaction or the related terms and conditions, nor is there any guarantee that Brookfield and the reference shareholders will make an offer for Grifols shares.

Thomas Glanzmann: Thank you, Dani, and good evening, afternoon, and morning to all on the call. I appreciate you all dialing in for our Q2 call. Before I turn to the quarter, I would like to comment on two filings. The first is a request from the Grifols family shareholders and Brookfield Capital Partners to perform due diligence as a step towards potentially taking Grifols private. The Board has responded to the request accordingly to ensure that all shareholders' interests are warranted and protected throughout this process. It has established a Transaction Committee comprised of independent directors to oversee the due diligence and evaluate any potential future offer. The Board has retained Lethem Watkins as Legal Counsel, and Morgan Stanley, and Goldman Sachs as Financial Advisors. The Board has also agreed on the governance of the potential buyout process, respecting the request of conflicted board members to recuse themselves from any deliberations and decisions related to the request and potential future actions coming out of the due diligence. With the guidance of the advisors.

Nacho: Before I turn to the quarter, I would like to comment on two filings. First is the request from the Grifols family shareholders and Brookfield Capital partners to perform due diligence as a step towards potentially taking Grifols private.

Nacho: The Board has responded to the request accordingly to ensure that all shareholders' interests are warranted and protected throughout this process.

Thomas H. Glanzmann: It has established a Transaction Committee comprised of independent directors to oversee the due diligence and evaluate any potential future offsets. The Board has retained Lethem Watkins as Legal Counsel and Morgan Stanley and Goldman Sachs as Financial Advisors. The board has also agreed on the governance of the potential buyout process, respecting the request of conflicted board members to recuse themselves from any deliberations and decisions related to the request and potential future actions coming out of the due diligence, with the guidance of the advisors. An NDA has been agreed upon, and the due diligence process has been initiated. At this time, and I want to be clear, there is no offer, agreement, or decision regarding a potential transaction or the related terms and conditions, nor is there any guarantee that Brookfield and the reference shareholders will make an offer for Grifols shares.

Nacho: It has established a transaction committee comprised of independent directors to oversee the due diligence and evaluate any potential future offer.

Nacho: The Board has retained Lethem Watkins as Legal Counsel and Morgan Stanley and Goldman Sachs as Financial Advisors.

Thomas H. Glanzmann: The board has also agreed on the governance of the potential buyout process, respecting the request of conflicted board members to recuse themselves from any deliberations and decisions related to the request and potential future actions coming out of the due diligence, with the guidance of the advisors. An NDA has been agreed upon, and the due diligence process has been initiated. At this time, and I want to be clear, there is no offer, agreement, or decision regarding a potential transaction or the related terms and conditions, nor is there any guarantee that Brookfield and the reference shareholders will make an offer for Grifols shares.

Thomas Glanzmann: The board has also agreed on the governance of the potential buyout process, respecting the request of conflicted board members to recuse themselves from any deliberations and decisions related to the request and potential future actions coming out of the due diligence. With the guidance of the advisors, an NDA has been agreed upon, and the due diligence process has been initiated. At this time, and I want to be clear, there is no offer, agreement, or decision regarding a potential transaction or the related terms and conditions, nor is there any guarantee that Brookfield and the reference shareholders will make an offer for Grifols shares. Any further update will be communicated to the market in due course, and in accordance with applicable laws and regulations.

Nacho: The board has also agreed on the governance of the potential buyout process, respecting the request of conflicted board members to recuse themselves from any deliberations and decisions related to the request.

Nacho: and potential future actions coming out of the due diligence.

Thomas Glanzmann: With the guidance of the advisors, an NDA has been agreed upon, and the due diligence process has been initiated. At this time--and I want to be clear--there is no offer, agreement, or decision regarding a potential transaction or the related terms and conditions, nor is there any guarantee that Brookfield and the reference shareholders will make an offer for Grifols shares. Any further update will be communicated to the market in due course and in accordance with applicable laws and regulations. As always, the Grifols Board of Directors and management team are committed to acting in the best interests of all shareholders, and we remain very focused on continuing to execute the company's strategy and deliver on our commitments in the meantime. We are not going to make any further comments on this matter during today's call. I thank you in advance and appreciate your understanding.

Nacho: With the guidance of the advisors and NDA has been agreed upon and the due diligence process has been initiated.

Thomas Glanzmann: An NDA has been agreed upon, and the due diligence process has been initiated. At this time, and I want to be clear, there is no offer, agreement, or decision regarding a potential transaction or the related terms and conditions, nor is there any guarantee that Brookfield and the reference shareholders will make an offer for Grifols shares. Any further update will be communicated to the market in due course and in accordance with applicable laws and regulations. As always, the Grifols Board of Directors and management team are committed to acting in the best interests of all shareholders, and we remain very focused on continuing to execute the company's strategy and deliver on our commitments in the meantime. We are not going to make any further comments on this matter during today's call. I thank you in advance and appreciate your understanding. Second, is the IP filing that we announced before this call. As requested by the CNMV and after being reviewed and agreed upon with our new auditor, Deloitte, we have included some adjustments to the previous year's balance sheet and P&L as of June 30. These adjustments related to the Immunotech and Shanghai Rust transactions at the time of the acquisition back to 2020 have no material impact on the results and have no impact on cash flow or leverage ratio. With this communication, the company has provided a response to all information requested by the CNMV.

Speaker Change: At this time, and I want to be clear, there is no offer, agreement, or decision regarding a potential transaction or the related terms and conditions, nor is there any guarantee

Speaker Change: that Brookfield and the reference shareholders will make an offer for Grifols shares.

Thomas H. Glanzmann: Any further update will be communicated to the market in due course and in accordance with applicable laws and regulations. As always, the Grifols Board of Directors and management team are committed to acting in the best interests of all shareholders, and we remain very focused on continuing to execute the company's strategy and deliver on our commitments in the meantime. We are not going to make any further comments on this matter during today's call. I thank you in advance and appreciate your understanding. Second, is the IP filing that we announced before this call. As requested by the CNMV and after being reviewed and agreed upon with our new auditor, Deloitte, we have included some adjustments to the previous year's balance sheet and P&L as of June 30. These adjustments related to the Immunotech and Shanghai Rust transactions at the time of the acquisition back to 2020 have no material impact on the results and have no impact on cash flow or leverage ratio. With this communication, the company has provided a response to all information requested by the CNMV.

Speaker Change: Any further update will be communicated to the market in due course and in accordance with applicable laws and regulations.

Thomas Glanzmann: As always, the Grifols board of directors and management team are committed to acting in the best interests of all shareholders, and we remain very focused on continuing to execute the company strategy and deliver to our commitments in the meantime. We are not going to make any further comments on this matter on today's call. I thank you in advance and appreciate your understanding. Second is the H1 filing that we announced before this call. As requested by the CNMV, and after being reviewed and agreed upon with our new auditor, Deloitte, we have included some adjustments to the previous year's balance sheet and P&L as of June 30. These adjustments related to the ImmunoTek and Shanghai RAAS transactions at the time of the acquisition back to 2022, have no material impact on the results and no impact on cash flow or leverage ratio.

Thomas Glanzmann: As always, the Grifols Board of Directors and management team are committed to acting in the best interests of all shareholders, and we remain very focused on continuing to execute the company's strategy and deliver on our commitments in the meantime. We are not going to make any further comments on this matter during today's call. I thank you in advance and appreciate your understanding.

Speaker Change: As always, thank you for watching.

Speaker Change: The Grifols Board of Directors and management team are committed to acting in the best interest of all shareholders and we remain very focused on continuing to execute the company's strategy and deliver to our commitments in the meantime.

Speaker Change: We are not going to make any further comments on this matter on today's call. I thank you in advance and appreciate your understanding.

Thomas H. Glanzmann: Second, is the IP filing that we announced before this call. As requested by the CNMV and after being reviewed and agreed upon with our new auditor, Deloitte, we have included some adjustments to the previous year's balance sheet and P&L as of June 30. These adjustments related to the Immunotech and Shanghai Rust transactions at the time of the acquisition back to 2020 have no material impact on the results and have no impact on cash flow or leverage ratio. With this communication, the company has provided a response to all information requested by the CNMV.

Thomas Glanzmann: Second, is the IP filing that we announced before this call. As requested by the CNMV and after being reviewed and agreed upon with our new auditor, Deloitte, we have included some adjustments to the previous year's balance sheet and P&L as of June 30. These adjustments related to the Immunotech and Shanghai RAAS transactions at the time of the acquisition back to '20 have no material impact on the results, and have no impact on cash flow or leverage ratio. With this communication, the company has provided a response to all information requested by the CNMV. These updates underscore our continued dedication to working closely with regulators and auditors to fortify financial reporting. Now, let us turn to the business at hand and slide five. Over the last quarter, Grifols has continued to deliver on its promises, from a corporate governance perspective, we have implemented all the committed and announced actions to further enhance our corporate policies and governance. With the recent changes in the Board membership, we have reorganized the committees and appointed a new lead independent director, Montserrat Muñoz.

Speaker Change: Second, is the IP filing that we announced before this call.

Speaker Change: As requested by the CNMV, and after being reviewed and agreed upon with our new auditor, Deloitte, we have included some adjustments to the previous year's balance sheet and P&L as of June 30.

Speaker Change: These adjustments related to the Immunotech and Shanghai Rust transactions at the time of the acquisition back to 2020 have no material impact on the results and no impact on cash flow or leverage ratio.

Thomas Glanzmann: With this communication, the company has provided a response to all information requested by the CNMV. These updates underscore our continued dedication to working closely with regulators and auditors to fortify financial reporting. Now let us turn to the business at hand and Slide 5. Over the last quarter, Grifols has continued to deliver on its promises. From a corporate governance perspective, we have implemented all the committed and announced actions to further enhance our corporate policies and governance. With the recent changes in the board membership, we have reorganized the committees and appointed a new lead independent director, Montserrat Muñoz. With her expertise and experience, she will continue to ensure board independence, and she will act as a key liaison among independent directors, all to better serve the interests of minority shareholders.

Speaker Change: With this communication, the company has provided a response to all information requested by the CNMV.

Thomas Glanzmann: Now, let us turn to the business at hand and slide five. Over the last quarter, Grifols has continued to deliver on its promises, from a corporate governance perspective, we have implemented all the committed and announced actions to further enhance our corporate policies and governance. With the recent changes in the Board membership, we have reorganized the committees and appointed a new lead independent director, Montserrat Muñoz.

Thomas H. Glanzmann: These updates underscore our continued dedication to working closely with regulators and auditors to fortify financial reporting. Now, let us turn to the business at hand and slide five, for the last quarter. Grifols has continued to deliver on its promises. From a corporate governance perspective, we have implemented all the committed and announced actions to further enhance our corporate policies and governance. With the recent changes in the board membership, we have reorganized the committees and appointed a new lead independent director, Montserrat Munoz.

Speaker Change: These updates underscore our continued dedication to working closely with regulators and auditors to fortify financial reporting. Now let us turn to the business at hand and slide 5.

Speaker Change: Over the last quarter, Grifols has continued to deliver on its promises. From a corporate governance perspective, we have implemented all the committed and announced actions to further enhance our corporate policies and governance.

Thomas Glanzmann: With her expertise and experience, she will continue to ensure Board independence, and she will act as a key liaison among independent directors, all to better serve the interests of minority shareholders. We, as a Board and company, are fully committed to ensuring that we continue to meet best governance and financial practices as we move forward. As part of this, and as you know, my position as Executive Chairman is transitioning to a non-Executive role in line with good governance practices, and I, alongside the Board and Management team, stand by that commitment. With regard to the company management, Nacho has established a new executive committee, and we have added Rahul Srinivasan as the new Chief Financial Officer to the Management team starting in September. Nacho will share more on his background in a few minutes, but we are pleased to add one of the last remaining pieces in completing our leadership team. Nacho himself joined in April, as you know, and since then, we've had a smooth handover and seamless transition.

Speaker Change: With the recent changes in the board membership, we have reorganized the committees and appointed a new lead independent director, Montserrat Munoz.

Speaker Change: With her expertise and experience, she will continue to ensure board independence and she will act as a key liaison among independent directors, all to better serve the interests of minority shareholders.

Thomas Glanzmann: We, as a board and company, are fully committed to ensuring that we continue to meet best governance and financial practices as we move forward. As part of this, and as you know, my position as Executive Chairman is transitioning to a non-executive role in line with good governance practices, and I, alongside the board and management team, stand by that commitment. With regards to the company management, Nacho has established a new executive committee, and we have added Rahul Srinivasan as the new Chief Financial Officer to the management team starting in September. Nacho will share more on his background in a few minutes, but we are pleased to add one of the last remaining pieces in completing our leadership team. Nacho himself joined in April, as you know, and since then, we've had a smooth handover and seamless transition.

Speaker Change: We, as a board and company, are fully committed to ensuring that we continue to meet best governance and financial practices as we move forward.

Speaker Change: As part of this, and as you know, my position as Executive Chairman is transitioning to a non-executive role in line with good governance practices, and I, alongside the Board and Management team, stand by that commitment.

Thomas H. Glanzmann: With regard to the company management, NACCHO has established a new executive committee, and we have added Rahul Srinivasan as the new chief financial officer to the management team starting in September. Nacho will share more on his background in a few minutes, but we are pleased to add one of the last remaining pieces to completing our leadership team. Nacho himself joined in April, as you know, and since then, we've had a smooth handover and seamless transition.

Speaker Change: With regards to the company management, NACCHO has established a new Executive Committee and we have added Rahul Srinivasan as the new Chief Financial Officer to the management team starting in September .

Speaker Change: Nacho will share more on his background in a few minutes, but we are pleased to add one of the last remaining pieces in completing our leadership team.

Speaker Change: Nacho himself joined in April , as you know, and since then, we've had a smooth handover and seamless transition.

Thomas Glanzmann: Our common primary focus has been to meet all of our commitments, execute on our strategic initiatives, deliver the financials with a key focus on free cash flow, and continue to evolve the organization for the future. I also want to touch briefly on the follow-up to the closing of the hire transaction this June, which was a key commitment from us. We are now progressing with the Strategic Alliance to explore all potential opportunities. We know this partnership will drive synergies by combining our expertise with Hire's innovative technology. As part of this strategic alliance, our album and distribution agreement has also been extended for the next 10 years, with an option for a further 10-year extension. This partnership enables us to enhance our diagnostics business with Hire in China, a critical market for Grifols as we aim to continue our expansion there, and it will also provide us with the opportunity to further leverage China's hemoderivatives market. Turning to slide six, on the debt management front, I would first like to take this opportunity to provide additional clarity on the company's commercial engagement with Moody. Grifols decided to terminate its commercial relationship with Moody's as we believe that having ratings from two international credit-rated agencies is sufficient and a common market standard. The end of this commercial relationship is the sole reason why Moody's will no longer have access to all of Grifols' information and finances. It should be noted that Grifols has always provided all the required information to Moody's in a timely fashion, as we do with other rating agencies. From now on, we will continue to work closely with S&P Global Ratings and Fitch Ratings. As we have previously stated, debt management is one of our top priorities, and we have made good progress with the Euro 1.6 billion proceeds from the sale of the 20% stake in Shanghai Ross, as well as the issuance of the Euro 1.3 billion private placement notes due in 2030.

Nacho: Our common primary focus has been to meet all of our commitments, execute on our strategic initiatives, deliver the financials with a key focus on free cash flow, and continue to evolve the organization for the future.

Nacho: I also want to touch briefly on the follow-up of the closing of the hire transaction this June , which was a key commitment from us. We are now progressing with the Strategic Alliance to explore all potential opportunities.

Thomas H. Glanzmann: We know this partnership will drive synergies by combining our expertise with Hire's innovative technology. As part of this strategic alliance, our album and distribution agreement has also been extended for the next 10 years, with an option for a further 10-year extension. This partnership enables us to enhance our diagnostics business with Hire in China, a critical market for Grifols as we aim to continue our expansion there, and it will also provide us with the opportunity to further leverage China's hemoderivatives market.

Nacho: We know this partnership will drive synergies by combining our expertise with Hire's innovative technologies.

Thomas Glanzmann: As part of this strategic alliance, our album and distribution agreement has also been extended for the next 10 years, with an option for a further 10-year extension. This partnership enables us to enhance our diagnostics business with Haier in China, a critical market for Grifols as we aim to continue our expansion there, and it will also provide us with the opportunity to further leverage China's hemoderivatives market.

Nacho: As part of this strategic alliance, our album and distribution agreement has also been extended for the next 10 years, with an option for a further 10-year extension.

Thomas Glanzmann: This partnership enables us to enhance our diagnostics business with Haier in China, a critical market for Grifols, as we aim to continue our expansion there, and it will also provide us with the opportunity to further leverage China's hemoderivatives market. Turning to Slide 6. On the debt management front, I would first like to take this opportunity to provide additional clarity on the company's commercial engagement with Moody's. Grifols decided to terminate its commercial relationship with Moody's as we believe that having ratings from two international credit-rated agencies is sufficient and a common market standard. The end of this commercial relationship is the sole reason why they will no longer have access to all of Grifols' information and financials. It should be noted that Grifols has always provided all the required information to Moody's in a timely fashion, as we do with other rating agencies.

Nacho: This partnership enables us to enhance our diagnostics business with Hire in China, a critical market for Grifols, as we aim to continue our expansion there, and it will also provide us with the opportunity to further leverage China's hemoderivatives market.

Thomas H. Glanzmann: Turning to slide six, on the debt management front, I would first like to take this opportunity to provide additional clarity on the company's commercial engagement with Moody. Grifols decided to terminate its commercial relationship with Moody's as we believe that having ratings from two international credit-rated agencies is sufficient and a common market standard. The end of this commercial relationship is the sole reason why Moody's will no longer have access to all of Grifols' information and finances. It should be noted that Grifols has always provided all the required information to Moody's in a timely fashion, as we do with other rating agencies. From now on, we will continue to work closely with S&P Global Ratings and Fitch Ratings. As we have previously stated, debt management is one of our top priorities, and we have made good progress with the Euro 1.6 billion proceeds from the sale of the 20% stake in Shanghai Ross, as well as the issuance of the Euro 1.3 billion private placement notes due in 2030.

Thomas Glanzmann: Turning to slide six, on the debt management front, I would first like to take this opportunity to provide additional clarity on the company's commercial engagement with Moody's.

Nacho: Turning to slide 6.

Speaker Change: On the debt management front, I would first like to take this opportunity to provide additional clarity on the company's commercial engagement with Moody's.

Thomas Glanzmann: Grifols decided to terminate its commercial relationship with Moody's as we believe that having ratings from two international credit-rated agencies is sufficient and a common market standard. The end of this commercial relationship is the sole reason why Moody's will no longer have access to all of Grifols' information and finances. It should be noted that Grifols has always provided all the required information to Moody's in a timely fashion, as we do with other rating agencies. From now on, we will continue to work closely with S&P Global Ratings and Fitch Ratings. As we have previously stated, debt management is one of our top priorities, and we have made good progress with the Euro 1.6 billion proceeds from the sale of the 20% stake in Shanghai Ross, as well as the issuance of the Euro 1.3 billion private placement notes due in 2030. The completion of these initiatives clears our debt profile until 227, which NACCHO will review in further detail later in our presentation. Meanwhile, innovation continues to be a key priority and future engine for growth. Given this, there are three specific updates I want to highlight. One is the strengthening of our IG franchise with the FDA approval of Biotest-Yamugo and its upcoming commercial launch in the United States. This marks a significant achievement, not only for biotests, which will have a commercial presence in the U.S. market for the first time, but also for Grifols as it strengthens our commercial strategy in the largest plasma market.

Thomas Glanzmann: Grifols decided to terminate its commercial relationship with Moody's as we believe that having ratings from two international credit-rated agencies is sufficient and a common market standard. The end of this commercial relationship is the sole reason why they will no longer have access to all of Grifols' information and financials. It should be noted that Grifols has always provided all the required information to Moody's in a timely fashion, as we do with other rating agencies. From now on, we will continue to work closely with S&P Global Ratings and Fitch Ratings. As we have previously stated, debt management is one of our top priorities, and we have made good progress with the Euro 1.6 billion proceeds from the sale of the 20% stake of Shanghai RAAS, as well as the issuance of the Euro 1.3 billion private placement notes due in 2030. The completion of these initiatives clears our debt profile until 227, which Nacho will review in further detail later in our presentation. Separately, innovation continues to be a key priority and future engine for growth.

Speaker Change: Grifols decided to terminate its commercial relationship with Moody's as we believe that having ratings from two international credit-rated agencies is sufficient and a common market standard.

Speaker Change: The end of this commercial relationship is the sole reason why they will no longer have access to all of Grifols' information and financials.

Thomas Glanzmann: It should be noted that Grifols has always provided all the required information to Moody's in a timely fashion, as we do with other rating agencies. From now on, we will continue to work closely with S&P Global Ratings and Fitch Ratings. As we have previously stated, debt management is one of our top priorities, and we have made good progress with the Euro 1.6 billion proceeds from the sale of the 20% stake in Shanghai Ross, as well as the issuance of the Euro 1.3 billion private placement notes due in 2030.

Thomas H. Glanzmann: It should be noted that Grifols has always provided all the required information to Moody's in a timely fashion, as we do with other rating agencies. From now on, we will continue to work closely with S&P Global Ratings and Fitch Ratings. As we have previously stated, debt management is one of our top priorities, and we have made good progress with the Euro 1.6 billion proceeds from the sale of the 20% stake in Shanghai Ross, as well as the issuance of the Euro 1.3 billion private placement notes due in 2030.

Speaker Change: It should be noted that Grifols has always provided all the required information to Moody's in a timely fashion, as we do with other rating agencies. From now on, we will continue to work closely with S&P Global Ratings and Fitch Ratings.

Thomas Glanzmann: As we have previously stated, debt management is one of our top priorities, and we have made good progress with the Euro 1.6 billion proceeds from the sale of the 20% stake of Shanghai RAAS, as well as the issuance of the Euro 1.3 billion private placement notes due in 2030. The completion of these initiatives clears our debt profile until 227, which Nacho will review in further detail later in our presentation. Separately, innovation continues to be a key priority and future engine for growth.

Thomas Glanzmann: From now on, we will continue to work closely with S&P Global Ratings and Fitch Ratings. As we have previously stated, debt management is one of our top priorities, and we have made good progress with the EUR 1.6 billion proceeds from the sale of the 20% stake of Shanghai RAAS, as well as the issuance of the EUR 1.3 billion private placement notes due in 2030. The completion of these initiatives clears our debt profile until 2027, which Nacho will review in further detail later in our presentation. Separately, innovation continues to be a key priority and future engine for growth. Given this, there are three specific updates I want to highlight. One is the strengthening of our IG franchise with the FDA approval of Biotest Yimmugo and its upcoming commercial launch in the United States.

Speaker Change: As we have previously stated, debt management is one of our top priorities.

Speaker Change: And we have made good progress with the Euro 1.6 billion proceeds from the sale of the 20% stake of Shanghai Ross, as well as the issuance of the Euro 1.3 billion private placement notes due in 2030.

Thomas Glanzmann: Given this, there are three specific updates I want to highlight. One is the strengthening of our IG franchise with the FDA approval of Biotest YIMMUGO and its upcoming commercial launch in the United States. This marks a significant achievement, not only for Biotest, which will have a commercial presence in the U.S. market for the first time, but also for Grifols as it strengthens our commercial strategy in the largest plasma market. Also noteworthy is the traction XEMBIFY, our subcontinuous IG, continues to gain on the back of a strong performance in the U.S., coupled with commercialization in seven European countries to date and additional ones planned for the remainder of '24. On a very positive note, the FDA recently also approved extending the label for XEMBIFY to include bi-weekly dosing. The new FDA approval also covers naive patients, meaning that we are the only 20% subcu IG approved for patients who have never been treated with any type of IG product. The third update is that following the release of positive top-line fibrinogen results in February, we completed the clinical study report and found the results to be extremely promising. This completion triggers the regulatory approval process, which we, as planned, will begin in the fourth quarter of '24. We expect to launch the product in the second half of '25, first in Europe and then in the U.S.

Thomas H. Glanzmann: The completion of these initiatives clears our debt profile until 227, which NACCHO will review in further detail later in our presentation. Meanwhile, innovation continues to be a key priority and future engine for growth. Given this, there are three specific updates I want to highlight. One is the strengthening of our IG franchise with the FDA approval of Biotest-Yamugo and its upcoming commercial launch in the United States. This marks a significant achievement, not only for biotests, which will have a commercial presence in the U.S. market for the first time, but also for Grifols as it strengthens our commercial strategy in the largest plasma market.

NACCHO: The completion of these initiatives clears our debt profile until 2027, which NACCHO will review in further detail later in our presentation.

Speaker Change: Separately, innovation continues to be a key priority and future engine for growth. Given this, there are three specific updates I want to highlight.

Thomas H. Glanzmann: Also noteworthy is the traction Zembify, our subcontinuous IG, continues to gain on the back of a strong performance in the U.S., coupled with commercialization in seven European countries to date and additional ones planned for the remainder of 24. On a very positive note, the FDA recently also approved extending the label for Sembify to include bi-weekly dosing. The new FDA approval also covers naive patients, meaning that we are the only 20% sub-QIG approved for patients who have never been treated with any type of IG product.

Speaker Change: One is the strengthening of our IG franchise with the FDA approval of Biotest-C-Mugo and its upcoming commercial launch in the United States.

Thomas Glanzmann: This marks a significant achievement, not only for Biotest, which will have a commercial presence in the US market for the first time, but also for Grifols as it strengthen our commercial strategy in the largest plasma market. Also noteworthy is the traction XEMBIFY, our subcutaneous IG, continues to gain on the back of a strong performance in the US, coupled with a commercialization in seven European countries to date, and additional ones planned for the remainder of 2024. On a very positive note, the FDA recently also approved extending the label for XEMBIFY to include bi-weekly dosing. The new FDA approval also covers naive patients, meaning that we are the only 20% sub-Q IG approved for patients who have never been treated with any type of IG product.

Speaker Change: This marks a significant achievement, not only for biotests, which will have a commercial presence in the U.S. market for the first time, but also for Grifols as it strengthens our commercial strategy in the largest plasma market.

Speaker Change: Also noteworthy is the traction Zembify, our subcontinuous IG, continues to gain on the back of a strong performance.

Thomas Glanzmann: On a very positive note, the FDA recently also approved extending the label for XEMBIFY to include bi-weekly dosing. The new FDA approval also covers naive patients, meaning that we are the only 20% subcu IG approved for patients who have never been treated with any type of IG product. The third update is that following the release of positive top-line fibrinogen results in February, we completed the clinical study report and found the results to be extremely promising. This completion triggers the regulatory approval process, which we, as planned, will begin in the fourth quarter of '24. We expect to launch the product in the second half of '25, first in Europe and then in the U.S.

Speaker Change: In the U.S.

Speaker Change: Coupled with a commercialization in 7 European countries to date, and additional ones planned for the remainder of 24.

Speaker Change: On a very positive note, the FDA recently also approved extending the label for Sembify to include bi-weekly dosing.

Speaker Change: The new FDA approval also covers naive patients, meaning that we are the only 20% sub-QIG approved for patients who have never been treated with any type of IG product.

Thomas Glanzmann: The third update is that following the release of positive top-line fibrinogen results in February, we completed the clinical study report and found the results to be extremely promising. This completion triggers the regulatory approval process, as planned, will begin in Q4 2024. We expect to launch the product in H2 2025, first in Europe and then in the US. These milestones represent significant steps on our path towards revenue growth and margin expansion. Finally, I want to reaffirm our full year 2024 guidance as the strong operational performance reported in H1 of the year is evidence that the company is on the right track to meet its targets across all key metrics, revenue, EBITDA, free cash flow, and leverage ratio.

Thomas H. Glanzmann: The third update is that following the release of positive top-line fibrinogen results in February, we completed the clinical study report and found the results to be extremely promising. This completion triggers the regulatory approval process, which we, as planned, will begin in the fourth quarter of twenty-four. We expect to launch the product in the second half of twenty-five, first in Europe and then in the U.S.

Speaker Change: The third update is that following the release of positive top-line fibrinogen results in February , we completed the clinical study report and found the results to be extremely promising.

Speaker Change: This completion triggers the regulatory approval process, which we, as planned, will begin in the fourth quarter of twenty-four. We expect to launch the product in the second half of twenty-five, first in Europe and then in the U.S.

Thomas Glanzmann: These milestones represent significant steps on our path towards revenue growth and margin expansion. Finally, I want to reaffirm our full year '24 guidance, as the strong operational performance reported in the first half of the year is evidence that the company is on the right track to meet its targets across all key metrics, revenue, EBTA, free cash flow, and leverage ratio. Before I turn it over to Nacho for more details, I want to recognize the Grifols Team and summarize the progress that the company has made since early last year. We have further enhanced our corporate governance, restructured and delivered on the cost improvement plan, divested 20% of Shanghai RAAS for Euro 1.6 billion to reduce our debt, cleared the path of debt until 2027, recruited a new CEO, made significant management changes and additions, and delivered on all our financial commitments today. Needless to say, we have more work to do, but we continue to be confident in the fundamentals of our business and the opportunities that we are executing to further improve our financials and sustainably grow the company. With that, I will turn over the word to Nacho. Thank you for your attention.

Speaker Change: These milestones represent significant steps on our path towards revenue growth and margin expansion.

Speaker Change: Finally, I want to reaffirm our full year 24 guidance, as the strong operational performance reported in the first half of the year is evidence that the company is on the right track to meet its targets.

Speaker Change: across all key metrics, revenue, EBTA, free cash flow, and leverage ratio.

Thomas Glanzmann: Before I turn it over to Nacho for more details, I want to recognize the Grifols Team and summarize the progress that the company has made since early last year. We have further enhanced our corporate governance, restructured and delivered on the cost improvement plan, divested 20% of Shanghai RAAS for Euro 1.6 billion to reduce our debt, cleared the path of debt until 2027, recruited a new CEO, made significant management changes and additions, and delivered on all our financial commitments today. Needless to say, we have more work to do, but we continue to be confident in the fundamentals of our business and the opportunities that we are executing to further improve our financials and sustainably grow the company. With that, I will turn over the word to Nacho. Thank you for your attention.

Thomas Glanzmann: Before I turn it over to Nacho for more details, I want to recognize the Grifols team and summarize the progress that the company has made since early last year. We have further enhanced our corporate governance, restructured and delivered on the cost improvement plan, divested 20% of Shanghai RAAS for EUR 1.6 billion to reduce our debt, cleared the path of debt until 2027, recruited a new CEO, made significant management changes and additions, and delivered on all our financial commitments to date. Needless to say, we have more work to do, but we continue to be confident in the fundamentals of our business and the opportunities that we are executing to further improve our financials and sustainably grow the company. With that, I will turn it over to Nacho. Thank you for your attention.

Speaker Change: Before I turn it over to Nacho for more details, I want to recognize the Grifols team and summarize the progress that the company has made since early last year.

Thomas H. Glanzmann: We have further enhanced our corporate governance, restructured and delivered on the cost improvement plan, divested 20% of Shanghai Ross for Euro 1.6 billion to reduce our debt, cleared the path of debt until 2027, recruited a new CEO, made significant management changes and additions, and delivered on all our financial commitments today. Needless to say, we have more work to do, but we continue to be confident in the fundamentals of our business and the opportunities that we are executing to further improve our financials and sustainably grow the company. With that, I will turn over the word to Nacho.

Speaker Change: We have further enhanced our corporate governance, restructured and delivered on the cost improvement plan, divested 20% of Shanghai Roth for Euro 1.6 billion to reduce our debt.

Speaker Change: cleared the path of debt until 2027, recruited a new CEO , made significant management changes and additions, and delivered on all our financial commitments to date.

Speaker Change: Needless to say, we have more work to do, but we continue to be confident in the fundamentals of our business and the opportunities that we are executing.

Speaker Change: to further improve our financials and sustainably grow the company. With that, I will turn over the word to Nacho. Thank you for your attention.

Nacho: Thank you for your attention. Thank you, Thomas, for all those relevant updates. Hello, everyone.

Thank you for your attention.

Nacho Abia: Thank you, Thomas, for all those relevant updates. Hello to everyone. Today, it marks my four-month anniversary as CEO of Grifols. And, while a lot of things have happened in the last 120 days, as we promised in the Q1 call in May, we have been able to focus on business execution and achieve the goals we set for the second quarter of 2024. I'll explain more about that in the next slides, but first, I'd like to provide an update on leadership team. As part of our efforts to re-engineer the leadership structure for more effective execution of our priorities, we have a streamlined Grifols Executive Committee, which is now comprised of a combination of some external Senior Executives and some seasoned professionals from within the company. This executive team, which is by now completed, includes the presidents of Biopharma, Plasma and Diagnostics, along with the Chief Corporate Affairs and Legal Officer, the Chief Industrial Service Officer, the Chief Human Resources and Talent Officer, and the incoming Chief Financial Officer. Regarding the corporate finance function, as Thomas mentioned, we are pleased to welcome Rahul on board. With his recent role as head of EMEA, Leverage Finance, and Capital Markets at Bank of America in London, Rahul brings extensive experience in Senior Finance Leadership. His expertise spans advisory services, global capital markets, risk management, financial planning and analysis, compliance, governance, and outreach.

Nacho Abia: Thank you, Thomas, for all those relevant updates. Hello to everyone. Today, it marks my fourth-month anniversary as CEO of Grifols. While a lot of things have happened in the last 120 days, as we promised in the Q1 call in May, we have been able to focus on business execution and achieve the goals we set for Q2 2024. I'll explain more about it in the next slides. First, I'd like to provide an update about the leadership team. As part of our efforts to re-engineer the leadership structure for more effective execution of our priorities, we have a streamlined Grifols executive committee, which is now comprised of a combination of some external senior executive and some seasoned professionals from within the company.

Nacho: Thank you, Thomas, for all those relevant updates. Hello to everyone.

Nacho: Today, it marks my four-month anniversary as CEO of Grifols. And, well, a lot of things have happened in the last 120 days. As we promised in the Q1 call in May, we have been able to focus on business execution and achieve the goals we set for the second quarter of 2020. I'll explain more about that in the next slides, but first, I'd like to provide an update on leadership. As part of our efforts to re-engineer the leadership structure for more effective execution of our priorities, we have a streamlined Grifols Executive Committee, which is now comprised of a combination of some external senior executives and some seasoned professionals from within the company. This executive team, which is now complete, includes the presidents of Biopharma, Plasma, and Diagnostics, along with the Chief Corporate Affairs and Legal Officer, the Chief Industrial Service Officer, the Chief Human Resources and Talent Officer, and the incoming Chief Financial Officer.

Nacho: Today, it marks my fourth month anniversary as CEO of Grifols.

Nacho: And while a lot of things have happened in the last 120 days, as we promised in the quarter one call in May, we have been able to focus on business execution and achieve the goals we set for the second quarter of 2024.

Nacho: This executive team, which is now complete, includes the presidents of Biopharma, Plasma, and Diagnostics, along with the Chief Corporate Affairs and Legal Officer, the Chief Industrial Service Officer, the Chief Human Resources and Talent Officer, and the incoming Chief Financial Officer.

Nacho: I'll explain more about it in the next slides, but first I'd like to provide an update about the leadership team.

Nacho Abia: As part of our efforts to re-engineer the leadership structure for more effective execution of our priorities, we have a streamlined Grifols Executive Committee, which is now comprised of a combination of some external Senior Executives and some seasoned professionals from within the company. This executive team, which is by now completed, includes the presidents of Biopharma, Plasma and Diagnostics, along with the Chief Corporate Affairs and Legal Officer, the Chief Industrial Service Officer, the Chief Human Resources and Talent Officer, and the incoming Chief Financial Officer. Regarding the corporate finance function, as Thomas mentioned, we are pleased to welcome Rahul on board. With his recent role as head of EMEA, Leverage Finance, and Capital Markets at Bank of America in London, Rahul brings extensive experience in Senior Finance Leadership. His expertise spans advisory services, global capital markets, risk management, financial planning and analysis, compliance, governance, and outreach.

Nacho: As part of our efforts to re-engineer the leadership structure for more effective execution of our priorities, we have a streamlined Grifols Executive Committee, which is now comprised of a combination of some external senior executives and some seasoned professionals from within the company.

Nacho Abia: This executive team, which is by now completed, includes the presidents of Biopharma, Plasma, and Diagnostics, along with the chief corporate affairs and legal officer, the chief industrial services officer, the chief human resources and talent officer, and the incoming chief financial officer. Regarding the corporate finance function, as Thomas mentioned, we are pleased to welcome Rahul on board. With his recent role as head of EMEA Leveraged Finance and Capital Markets at Bank of America in London, Rahul brings extensive experience in senior finance leadership. His expertise expands advisory services, global capital market risk management, financial planning and analysis, compliance, governance, and audit. Rahul will play a crucial role in implementing effective cash flow strategies and driving our debt management plan, two of the company's two priorities.

Nacho: This executive team, which is by now completed, includes the presidents of Biopharma, Plasma and Diagnostics, along with the Chief Corporate Affairs and Legal Officer, the Chief Industrial Service Officer, the Chief Human Resources and Talent Officer, and the incoming Chief Financial Officer.

Nacho: Regarding the corporate finance function, as Thomas mentioned, we are pleased to welcome Rahul on board. With his recent role as head of EMEA, Leverage Finance, and Capital Markets at Bank of America in London, Rahul brings extensive experience in senior finance leadership. His expertise spans advisory services, global capital markets, risk management, financial planning and analysis, compliance, governance, and outreach.

Nacho: Regarding the corporate finance function, as Thomas mentioned, we are pleased to welcome Rahul on board.

Speaker Change: With his recent role as head of EMEA, Leverage Finance and Capital Markets at Bank of America in London, Rahul brings extensive experience in senior finance leadership.

Rahul: His expertise spans advisory services, global capital markets, risk management, financial planning and analysis, compliance, governance, and audit.

Nacho Abia: Rahul will play a crucial role in implementing effective cash flow strategies and driving our debt management plan, two of the company's top priorities. To complement and support the Senior Executive Team, we have also established an Extended Executive Committee that includes other key functions that will work alongside the Executive Committee to further enhance Grifols' value, mission, and strategy. These two groups will become paramount to the definition and implementation of our strategies moving forward, and I am very pleased with the caliber and talent of the team that we have. Turning to slide 9, our second quarter performance was strong and supported the delivery of a solid first half start of the year. Given this, as Thomas shared, we are reaffirming our full year 2024 guidance. In terms of revenue, we reached €1,881 million in the second quarter, bringing the first half to almost €3.5 billion. It represents, on a constant currency basis, an increase in sales in Q2 of 9.3% versus the previous year, and a 7.5% in the first half of the year. Adjusted EBDA stood at €441 million this quarter, with a margin of 24.2%, which led to an adjusted EBDA of €791 million for the first half of 2024, which represents a 22% increase in EBITDA value versus last fiscal year. These results align well with our expectations to meet our guidance for the coming quarters.

Speaker Change: Rahul will play a crucial role in implementing effective cash flow strategies and driving our debt management plan.

Nacho Abia: To complement and support the senior executive team, we have established as well an extended executive committee that includes other key functions that will work alongside the executive committee to further enhance Grifols' value, mission, and strategy. These two group will become paramount to the definition and implementation of our strategies moving forward, and I'm very pleased with the caliber and talent of the team that we have assembled. Turning to slide 9, our Q2 performance was strong and supported the delivery of a solid H1 start to the year. Given this, as Thomas shared, we are reaffirming our full year 2024 guidance. In terms of revenue, we reached EUR 1,881 million in the Q2, bringing the H1 to almost EUR 3.5 billion.

Speaker Change: Two of the company's two priorities.

Speaker Change: To complement and support the senior executive team, we have established as well an extended executive committee that includes other key functions that will work alongside the executive committee to further enhance Grifols' value, mission, and strategy.

Speaker Change: These two groups will become paramount to the definition and implementation of our strategies moving forward, and I am very pleased with the caliber and talent of the team that we have assembled.

Nacho: Turning to slide 9, our second quarter performance was strong and supported the delivery of a solid first half start. Given this, as Thomas shared, we are reaffirming our full year 2024 guide. In terms of revenue, we reached €1,881 million in the second quarter, bringing the first half to almost €3.5 billion. It represents, on a constant currency basis, an increase in sales in Q2 of 9.3% versus the previous year and a 7.5% in the first half. But just the VDA stood at €441 million this quarter, with a margin of 24.2%, which led to an adjusted EBDA of €791 million for the first half of 2024, which represents a 22% increase in EBITDA value versus last year. These results align well with our expectations to meet our guidance for the coming work.

Nacho Abia: Turning to slide 9, our second quarter performance was strong and supported the delivery of a solid first half start of the year. Given this, as Thomas shared, we are reaffirming our full year 2024 guidance. In terms of revenue, we reached €1,881 million in the second quarter, bringing the first half to almost €3.5 billion. It represents, on a constant currency basis, an increase in sales in Q2 of 9.3% versus the previous year, and a 7.5% in the first half of the year. Adjusted EBDA stood at €441 million this quarter, with a margin of 24.2%, which led to an adjusted EBDA of €791 million for the first half of 2024, which represents a 22% increase in EBITDA value versus last fiscal year. These results align well with our expectations to meet our guidance for the coming quarters.

Speaker Change: Turning to slide nine, our second quarter performance was strong and supported the delivery of a solid first half start to the year.

Speaker Change: Given this, as Thomas shared, we are reaffirming our full GRPF 2024 guidance.

Thomas: In terms of revenue, we reached €1,881 million in the second quarter, bringing the first half to almost €3.5 billion.

Nacho: It represents, on a constant currency basis, an increase in sales in Q2 of 9.3% versus the previous year and a 7.5% in the first half. But just the VDA stood at €441 million this quarter, with a margin of 24.2%, which led to an adjusted EBDA of €791 million for the first half of 2024, which represents a 22% increase in EBITDA value versus last year. These results align well with our expectations to meet our guidance for the coming work.

Nacho Abia: This represents, on a constant currency basis, an increase in sales in Q2 of 9.3% versus previous year, and a 7.5% in the first half of the year. Adjusted EBITDA stood at EUR 441 million this quarter, with a margin of 24.2%, which led to an adjusted EBITDA of EUR 791 million for H1 2024, which represents a 22% increase of EBITDA value versus last fiscal year. These results aligns well with our expectations to meet our guidance for the coming quarters. As mentioned in our last call, cash flow was an absolutely priority for me and for the company, and with that focus in the second quarter, we have generated EUR 57 million of positive free cash flow.

Thomas: This represents, on a constant currency basis, an increase in sales in Q2 of 9.3% versus previous year.

Thomas: and a 7.5% in the first half of the year.

Thomas: Adjusted EVDA stood at €441 million this quarter, with a margin of 24.2%.

Thomas: which led to an adjusted EVDA of 791 million euros for the first half of 2024, which represents a 22% increase of EBITDA value versus last fiscal year.

Thomas: These results align well with our expectations to meet our guidance.

Nacho Abia: As mentioned in our last call, cash flow was an absolute priority for me and for the company, and with that focus, in the second quarter, we generated €57 million of positive free cash flow. This was mainly driven by improvements in EBDA and working capital, and we will provide a more detailed analysis of free cash flow in a later slide. And finally, our leverage ratio as per the credit facility declined to 5.5 times, driven by the combination of EBDA improvement and the €1.6 billion cash inflow from the Shanghai RAAS divestment. Without including these proceeds, our liquidity improved to €950 million, with cash on hand of €565 million. All told, we remain confident in our continued progress and anticipate improvement across key financial metrics throughout the remainder of 2024, in line with the guidance we provided in February and reconfirmed in May. Diving into the specifics of revenue across all business units, as mentioned, total revenue grew by 7.5% in the first half of the year, with a strong second quarter growth of 9.3%, both on a constant currency basis. Biopharma results were just short of 9% growth in the first half of the year.

Thomas: for the coming quarters.

Speaker Change: As mentioned in our last call, cash flow was an absolute priority for me and for the company. And with that focus, in the second quarter, we have generated €57 million of positive free cash flow.

Nacho Abia: This was mainly driven by improvements in EBITDA and working capital, and we will provide a more detailed analysis of free cash flow in a later slide. Finally, our leverage ratio as per the credit facility declined to 5.5 times, driven by the combination of EBITDA improvement and the EUR 1.6 billion cash inflow from the Shanghai RAAS divestment. Without including these proceeds, our liquidity improved to EUR 950 million, with cash on hand of EUR 565 million. All told, we remain confident in our continued progress and anticipate improvement across key financial metrics throughout the remainder of 2024, in line with the guidance we provided in February and reconfirm in May. Diving into the specifics of revenue across all business units.

Speaker Change: This was mainly driven by improvements in EVDA and working capital, and we will provide a more detailed analysis of free cash flow in a later slide.

Speaker Change: Finally, our leverage ratio as per the credit facility declined to 5.5 times.

Speaker Change: Driven by the combination of EBITDA improvement and the 1.6 billion euro cash inflow from the Shanghai Rush divestment.

Nacho: Without including these proceeds, our liquidity improved to $950 million, with cash on hand of $500 million. All told, we remain confident in our continued progress and anticipate improvement across key financial metrics throughout the remainder of 2020, in line with the guidance we provided in February and reconfirmed. Diving into the specifics of revenue across all business units, as mentioned, total revenue grew by 7.5% in the first half, with a strong second quarter growth of 9.3%, both on a constant current. Biopharma results were just short of 9% growth in the first half of the year.

Speaker Change: Without including these proceeds, our liquidity improved to $950 million with cash on hand of $565 million.

Nacho Abia: All told, we remain confident in our continued progress and anticipate improvement across key financial metrics throughout the remainder of 2024, in line with the guidance we provided in February and reconfirmed in May. Diving into the specifics of revenue across all business units, as mentioned, total revenue grew by 7.5% in the first half of the year, with a strong second quarter growth of 9.3%, both on a constant currency basis. Biopharma results were just short of 9% growth in the first half of the year.

Speaker Change: All told, we remain confident in our continued progress and anticipate improvement across key financial metrics throughout the remainder of 2024.

Speaker Change: alike with the guidance we provided in February and reconfirmed in May.

Nacho Abia: As mentioned, total revenue grew by 7.5% in H1, with a strong Q2 growth of 9.3%, both on a constant currency basis. Biopharma results were just short of 9% growth in H1. I'll provide some more details in the next slide. This acceleration of revenue growth has been supported by a strong double-digit growth of ex-US markets and a steady progress in the US. The Diagnostic division delivered a positive Q2 with an increase of 1.2% on a constant currency basis, with Blood Typing Solutions and immunoassay donor screening as the main drivers. This partially offset the negative growth reported in Q1 that was due to one-off settlement impact in Q1 of 2023.

Speaker Change: Diving into the specifics of revenue across all business units, as mentioned, total revenue grew by 7.5% in the first half of the year.

Speaker Change: with a strong second quarter growth of 9.3%, both on a constant currency basis.

Speaker Change: Biopharma results were just short of 9% growth in the first half of the year.

Nacho Abia: And I'll provide some more details in the next slide. This acceleration of revenue growth has been supported by strong double-digit growth in ex-USA markets and steady progress in the USA. The Diagnostic Division delivered a positive second quarter with an increase of 1.2% on a constant currency basis, with blood typing solutions and immunosafe donor screening as the main drivers. This partially offset the negative growth reported in the first quarter that was due to one-wof settlement impact in the first quarter of 2023. Excluding this impact, diagnostics would have grown close to 2% on a constant currency basis in the first half of 2024. Finally, Biosupplies delivered a strong performance in the second quarter, leading to overall growth of 33% on a constant currency basis in the first half of 2024. Biopharma continued to drive growth in the second quarter with just short of a 9% constant currency increase in the first half of 2024. Immunoglobulin was the highest growth protein, up 13% in constant currency versus previous year, due to strong IVIG demand and increasing subcutaneous IG traction in the U.S. and Europe, with a remarkable 60% increase. Our subcutaneous IG, XEMBIFY, remains a key lever in our product mix and continued EBDA expansion. Albumins saw close to 10% growth on a constant currency basis, driven by higher demand in China and in the U.S.

Speaker Change: And I'll provide some more details in the next slide.

Speaker Change: This acceleration of revenue growth has been supported by a strong double-digit growth of ex-USA markets and a steady progress in the USA.

Speaker Change: The Diagnostic Division delivered a positive second quarter with an increase of 1.2% on a cost and currency basis.

Nacho Abia: Finally, Biosupplies delivered a strong performance in the second quarter, leading to overall growth of 33% on a constant currency basis in the first half of 2024. Biopharma continued to drive growth in the second quarter with just short of a 9% constant currency increase in the first half of 2024. Immunoglobulin was the highest growth protein, up 13% in constant currency versus previous year, due to strong IVIG demand and increasing subcutaneous IG traction in the U.S. and Europe, with a remarkable 60% increase. Our subcutaneous IG, XEMBIFY, remains a key lever in our product mix and continued EBDA expansion. Albumins saw close to 10% growth on a constant currency basis, driven by higher demand in China and in the U.S.

Speaker Change: with blood typing solutions and immunoassay donor screening as the main drivers.

Speaker Change: This partially offset the negative growth reported in the first quarter that was due to one off-settlement impact in the first quarter of 2023.

Nacho Abia: Excluding this impact, Diagnostic would have grown close to 2% on a constant currency basis in H1 2024. Finally, Bio Supplies delivered a strong performance in Q2, leading to an overall growth of 33% on a constant currency basis in H1 2024. Biopharma continued to drive growth in Q2 with just short of 9% constant currency increase in H1 2024. Immunoglobulin was the highest growth protein, up 13% in constant currency versus previous year, due to a strong IVIG demand, an increase in subcutaneous IG traction in the US and Europe, with a remarkable 60% increase. Our subcutaneous IG, XEMBIFY, remains a key lever in our product mix and continued EBITDA expansion.

Nacho: Excluding this impact, Diagnostics would have grown close to 2% on a constant currency basis in the first half of 2020. Finally, Biosupplies delivered a strong performance in the second quarter, leading to overall growth of 33% on a constant currency basis in the first half of 2020. Biopharma continued to drive growth in the second quarter with just short of a 9% constant currency increase in the first half of 2020. Immunoglobulin was the highest growth protein, up 13% in constant currency versus previous, due to strong IVIG demand and increasing subcutaneous IG traction in the U.S. and Europe, with a remarkable 60%... Our subcutaneous IG, Shenbi5, remains a key lever in our product mix and continued Albumins saw close to 10% growth on a constant currency basis, driven by higher demand in China and in the U.S.

Speaker Change: Excluding this impact, Diagnostic would have grown close to 2% on a constant currency basis in the first half of 2024.

Nacho Abia: Meanwhile, Alpha-1 and specialty proteins revenue was flat, mainly due to some delays in the transition of the Alpha-1 speciality pharma distributor in the U.S., which is expected to bear fruit starting at the end of 2024. Switching to a new specialty pharma distributor will enhance the value proposition for our Alpha-1 Antitrypsin Deficiency patients and will drive revenue growth overtime. On the plasma front, plasma supply continued to increase compared to the same period in 2023. And we optimize our inventory levels through the management of our network of more than 390 plasma centers globally. In parallel, the cost per liter has stabilized compared to the first quarter of 2024, after declining by nearly 25% from the peak in July 2023. Finally, as part of our continuous improvement initiatives, we are working to enhance efficiencies in plasma and manufacturing yields and to advance our digital technologies to improve the donor experience. Thanks to the solid top-line growth and supported by operational efficiencies, our adjusted EBDI stood at €441 million this quarter, with adjusted EBDA margin of 24.2%, up to 150 basis points versus the second quarter of last year. This led to an adjusted EBDA of €791 million for the first half of the year, with a margin of 23% up to 240 basis points versus one year ago.

Speaker Change: Finally, BioSupplies delivered a strong performance in the second quarter, leading to an overall growth of 33% on a constant currency basis in the first half of 2024.

Speaker Change: Biopharma continued to drive growth in the second quarter with just short of 9% constant occurrence increase in the first half of 2024.

Speaker Change: Immunoglobulin was the highest growth protein, up 13% in constant currency versus previous year.

Speaker Change: due to a strong IVIG demand and increasing subcutaneous IG traction in the U.S. and Europe , with a remarkable 60% increase.

Speaker Change: Our subcutaneous IG, Shenbi5, remains a key lever in our product mix and continued EVDA expansion.

Nacho Abia: Albumin is close to 10% growth on a constant currency basis, driven by higher demand in China and in the US. Meanwhile, Alpha-1 and specialty proteins revenue were flat, mainly due to some delays in the transition of the Alpha-1 specialty pharma distributor in the US, which is expected to bear fruit starting at the end of 2024. Switching to a new specialty pharma distributors will enhance the value proposition for our alpha-1 antitrypsin deficiency patients and will drive revenue growth over time. On the plasma front, plasma supply continued to increase compared to the same period in 2023, and we optimized our inventory levels through the management of our network of more than 390 plasma centers globally.

Speaker Change: Albumins saw close to a 10% growth on a constant currency basis, driven by higher demand in China and in the U.S.

Speaker Change: Meanwhile, Alpha-1 and Specialty Protein's revenue were flat, mainly due to some delays in the transition of the Alpha-1 Specialty Pharma Distributor in the U.S.

Speaker Change: which is expected to bear fruit starting at the end of 2024.

Speaker Change: Switching to a new specialty pharma distributors will enhance the value proposition for our Alpha-1 antitrypsin deficiency patients and will drive revenue growth over time.

Nacho Abia: Finally, as part of our continuous improvement initiatives, we are working to enhance efficiencies in plasma and manufacturing yields and to advance our digital technologies to improve the donor experience. Thanks to the solid top-line growth and supported by operational efficiencies, our adjusted EBDI stood at €441 million this quarter, with adjusted EBDA margin of 24.2%, up to 150 basis points versus the second quarter of last year. This led to an adjusted EBDA of €791 million for the first half of the year, with a margin of 23% up to 240 basis points versus one year ago.

Nacho: And we optimize our inventory levels through the management of our network of more than 390 plasma centers. In parallel, the cost per liter has stabilized compared to the first quarter of 2024 after declining by nearly 25% from the peak in July 2020. Finally, as part of our continuous improvement initiatives, we are working to enhance efficiencies in plasma and manufacturing yields and to advance our digital technologies to improve the donor. Thanks to the solid top-line growth and supported by operational efficiencies, our adjusted EBDI stood at €441 million this quarter, with a Justice-DVDA margin of 24.2%, up by 150 basis points versus the second quarter of last year. This led to an adjusted EVDA of €791 million for the first half of the year, with a margin of 23% and 240 basis points versus one year.

Speaker Change: And we optimize at our inventory levels through the management of our network of more than 390 plasma centers globally.

Nacho Abia: In parallel, the cost per liter has stabilized compared to Q1 2024, after declining by nearly 25% from the peak in July 2022. Finally, as part of our continuous improvement initiatives, we are working to enhance efficiencies in plasma and manufacturing yields, and to advance our digital technologies to improve the donor experience. Thanks to the solid top-line growth and supported by operational efficiencies, our adjusted EBITDA stood at EUR 441 million this quarter, with adjusted EBITDA margin of 24.2%, up 150 basis points versus Q2 of last year. This led to an adjusted EBITDA of EUR 791 million for H1, with a margin of 23%, up 240 basis points versus one year ago.

Speaker Change: In parallel, the cost per liter has stabilized compared to the first quarter of 2024, after declining by nearly 25% from the peak in July 2022.

Nacho: Finally, as part of our continuous improvement initiatives, we are working to enhance efficiencies in plasma and manufacturing yields and to advance our digital technologies to improve the donor. Thanks to the solid top-line growth and supported by operational efficiencies, our adjusted EBDI stood at €441 million this quarter, with a Justice-DVDA margin of 24.2%, up by 150 basis points versus the second quarter of last year. This led to an adjusted EVDA of €791 million for the first half of the year, with a margin of 23% and 240 basis points versus one year.

Speaker Change: Finally, as part of our continuous improvement initiatives, we are working to enhance efficiencies in plasma and manufacturing yields, and to advance our digital technologies to improve the donor experience.

Speaker Change: Thanks to the solid top-line growth and supported by operational efficiencies, our adjusted EBDI stood at €441 million this quarter.

Speaker Change: with adjusted WDI margin of 24.2%, up 250 basis points versus the second quarter of the last year.

Speaker Change: This led to an adjusted EVDA of 791 million euros for the first half of the year with a margin of 23%, up to 240 basis points versus one year ago.

Nacho Abia: Gross margin stood at 37.8%, representing an expansion of 140 basis points compared to the first half of 2023. This is on the back of product mix, lower cost per liter from the second and third quarter of 2023, not in the 9 months coming from our long inventory cycle, and importantly, to a larger operational leverage. Our performance this quarter serves as a bridge to the forecasted sequential growth in the third and fourth quarters this year. This continued improvement provides further confidence in achieving our full-year guidance of reaching adjusted EBDA of €1.8 billion plus for the fiscal year 2024. I'd like to spend some time now talking about cash flow and debt reduction, which as stated many times, remain our focus. In the second quarter, the companies generated a positive cash flow of €57 million, representative of our cash flow turnaround and expected improvement throughout the remainder of the year. This figure includes a €119 million payment to Immunotech and €20 million in transaction costs associated with the extension of the Operational Improvement Plan and the Shanghai RAAS. Excluding these items, free cash flow would have been close to €200 million.

Nacho Abia: Gross margin stood at 37.8%, representing an expansion of 140 basis points compared to H1 2023. This is on the back of product mix, lower cost per liter from Q2 and Q3 2023, noting the 9-month lag coming from our long inventory cycle, and importantly, due to larger operational leverage. Our performance this quarter serves as a bridge to the forecasted sequential growth in Q3 and Q4 this year. This continued improvement provides further confidence in achieving our full-year guidance, reaching adjusted EBITDA of EUR 1.8 billion plus for the fiscal year 2024. I'd like to spend some time now talking about cash flow and debt reduction, which, as I stated many times, remain our top priorities.

Speaker Change: Gross margin stood at 37.8%, representing an expansion of 140 basis points compared to the first half of 2023.

Speaker Change: This is on the back of product mix, lower cost per litre from the second and third quarters of 2023, not in the nine months coming from our long inventory cycle, and importantly to a larger operational leverage.

Speaker Change: Our performance this quarter serves as a bridge to the forecasted sequential growth in the third and fourth quarters this year.

Nacho: This continued improvement provides further confidence in achieving our full-year guidance of reaching adjusted EBITDA of €1.8 billion plus for the fiscal year 2021. I'd like to spend some time now talking about cash flow and debt reduction, which, as stated many times, remain our focus. In the second quarter, the companies generated a positive cash flow of $57 million, representative of our cash flow turnaround and expected improvement throughout the remainder of the year. This figure includes a €119 million payment to Immunotech and €20 million in transaction costs associated with the extension of the Operational Improvement Plan and the Shanghai RAS. Excluding these items, free cash flow would have been close to Euro 200 million.

Speaker Change: This continued improvement provides further confidence in achieving our full-year guidance reaching adjusted EBDA of €1.8 billion plus for the fiscal year 2024.

Nacho Abia: I'd like to spend some time now talking about cash flow and debt reduction, which as stated many times, remain our focus. In the second quarter, the companies generated a positive cash flow of €57 million, representative of our cash flow turnaround and expected improvement throughout the remainder of the year. This figure includes a €119 million payment to Immunotech and €20 million in transaction costs associated with the extension of the Operational Improvement Plan and the Shanghai RAAS. Excluding these items, free cash flow would have been close to €200 million.

Speaker Change: I'd like to spend some time now talking about cash flow and debt reduction, which, as stated many times, remain our top priorities.

Nacho Abia: In Q2, the company's generated a cash flow of +EUR 57 million, representative of our cash flow turnaround and expected improvement throughout the remainder of the year. This figure includes a EUR 119 million payment to ImmunoTek and EUR 20 million in restructuring and transaction costs associated with the extension of the operational improvement plan and the Shanghai RAAS deal. Excluding these items, free cash flow would have been close to EUR 200 million. EBITDA and effective working capital management were the primary drivers of this quarter's improved free cash flow performance. Notable improvements include more efficient inventory management and better plasma supply handling. Additionally, receivables benefited from the catch-up of a EUR 150 million payment from China in Q1 and the normalization of payables. Meanwhile, CapEx, IT, and R&D expenses remain stable.

Speaker Change: In the second quarter, the companies generated a positive cash flow of 57 million euros.

Speaker Change: Representative of our cash flow turnaround and expected improvement throughout the remainder of the year.

Speaker Change: This figure includes a €119 million payment to Immunotech and €20 million in transaction costs associated with the extension of the Operational Improvement Plan and the Shanghai RAS deal.

Speaker Change: Excluding these items, free cash flow would have been close to EUR 200 million.

Nacho Abia: EBDA and Effective Working Capital Management were the primary drivers of this quarter's improved free cash flow performance. Notable improvements include more efficient inventory management and better plasma supply. Additionally, receivables benefited from the catch-up of €150 million payment from China in the first quarter and normalization of payouts. Meanwhile, CAPEX, IT, and R&D expenses remain. On this note, I would like to update you on the progress we are making on the cash flow improvement plan. As you know, the company is actively implementing the plan focusing on the five main levers. Normalize--normalization of our working capital, continuous operational improvement, stringent control of SG&A, spending optimization of real estate, and thorough portfolio analysis. We have progressed well since kicking off this project at the beginning of April. As I initially presented in last quarter's call, these initiatives will be constant as we continue to execute on the improvement of cash flow generation. On our efforts around working capital, a significant achievement this quarter was the improvement around the management of inventory levels and the normalization of receivables and payouts. Looking ahead, we anticipate a moderate increase in working capital, following continued strong underlying demand across all business units and the inventory build-ups to prepare for 2025 growth.

Speaker Change: EVDA and Effective Working Capital Management were the primary drivers of this quarter's improved free cash flow performance.

Speaker Change: Notable improvements include more efficient inventory management and better plasma supply handling.

Speaker Change: Additionally, receivables benefited from the catch-up of $150 million payment from China in the first quarter and the normalization of payables.

Nacho: Meanwhile, CAPEX, IT, and R&D expenses remain. On this note, I would like to update you on the progress we are making on the cash flow improvement. As you know, the company is actively implementing the plan focusing on the five main levers. Normalize, normalization of our working capital, continuous operational improvement, stringent control of SG&A, Spending Optimization of Real Estate, and Through a Thorough Portfolio. We have progressed well since kicking off this project at the beginning of April. As I initially presented in last quarter's call, these initiatives will be constant as we continue to execute on the improvement of cash flow. On our efforts around working capital, a significant achievement this quarter was the improvement around the management of inventory levels and the normalization of receivables. Looking ahead, we anticipate a moderate increase in working capital, following continued strong underlying demand across all business units and the inventory build-ups to prepare for 2025.

Nacho Abia: On this note, I would like to update you on the progress we are making on the cash flow improvement plan. As you know, the company is actively implementing the plan focusing on the five main levers. Normalize--normalization of our working capital, continuous operational improvement, stringent control of SG&A, spending optimization of real estate, and thorough portfolio analysis. We have progressed well since kicking off this project at the beginning of April. As I initially presented in last quarter's call, these initiatives will be constant as we continue to execute on the improvement of cash flow generation. On our efforts around working capital, a significant achievement this quarter was the improvement around the management of inventory levels and the normalization of receivables and payouts. Looking ahead, we anticipate a moderate increase in working capital, following continued strong underlying demand across all business units and the inventory build-ups to prepare for 2025 growth. But we will continue paying strong attention to tight working capital management.

Speaker Change: Meanwhile, CAPEX, IT, and R&D expenses remain at a stable level.

Nacho Abia: On this note, I would like to update you on the progress we are making on the cash flow improvement plan. As you know, the company is actively implementing the plan, focusing on the five main levers, normalization of our working capital, continuous operational improvement, stringent control of SG&A, spending optimization of real estate, and through a thorough portfolio analysis. We have progressed well since kicking off this project at the beginning of April. As I initially presented in last quarter's call, these initiatives will be constant as we continue to execute on improvement of cash flow generation. On our efforts around working capital, a significant achievement this quarter was the improvement around the management of inventory levels and the normalization of receivables and payables.

Speaker Change: On this note, I would like to update you on the progress we are making on the cash flow improvement plan.

Speaker Change: As you know, the company is actively implementing the plan focusing on the five main levers. Normalization of our working capital, continuous operational improvement, stringent control of SG&A, spending optimization of real estate, and thorough portfolio analysis.

Nacho: We have progressed well since kicking off this project at the beginning of April. As I initially presented in last quarter's call, these initiatives will be constant as we continue to execute on the improvement of cash flow. On our efforts around working capital, a significant achievement this quarter was the improvement around the management of inventory levels and the normalization of receivables. Looking ahead, we anticipate a moderate increase in working capital, following continued strong underlying demand across all business units and the inventory build-ups to prepare for 2025.

Speaker Change: We have progressed well since kicking off this project at the beginning of April .

Speaker Change: As I initially presented in last quarter's call, these initiatives will be constant as we continue to execute on improvement of cash flow generation.

Speaker Change: On our efforts around working capital, a significant achievement this quarter was the improvement around the management of inventory level of the normalization of receivables and payables.

Nacho Abia: Looking ahead, we anticipate a moderate increase in working capital following continued strong underlying demand across all business units and the inventory build-ups to prepare for 2025 growth. We will continue paying a strong attention to tight working capital management. On the operational improvement front, we are continuing to streamline operations. This covers not only plasma operations, but also manufacturing operations and all tangential functions, including yields enhancement, donor fee optimization, and improvement of industrial processes. While we have made substantial efforts to improve our cost structure last year, we remain focused on this continuous exercise in controlling SG&A spend to operate more efficiently. Looking beyond 2024, we have commenced a review of a real estate footprint and initiated a comprehensive portfolio analysis to ensure all projects and business units meet expected performance level.

Speaker Change: Looking ahead, we anticipate a moderate increase in working capital, following continued strong underlying demand across all business units and the inventory build-ups to prepare for 2025 growth. But we will continue paying strong attention to tight working capital management.

Nacho Abia: But we will continue paying strong attention to tight working. On the operational improvement front, we are continuing to streamline operations, discover not only plasma operations but also manufacturing operations and all tangent functions, including Yields Enhancement, Donor Fee Optimization, and Improvement of Industrial Process. While we made substantial efforts to improve our cost structure last year, we remain focused on this continuous exercise in controlling SG&A spend to operate more efficiently. Looking beyond 2024, we have commenced a review of our real estate footprint and initiated a comprehensive portfolio analysis to ensure all projects and business units meet expected performance. These final two pillars are inherently more complex and take more time, but they will contribute to cash flow improvements in the mid and long term. Real estate optimization includes consolidating underutilized office space, options for sale and leaseback transactions, and optimization of our leases. And the analysis of our portfolio assesses new opportunities and identifies underperformed companies. To finish this chapter, let me say that Grifols possesses the necessary levels to enhance its cash flow profile and generate substantial additional free cash flow in 2025 and beyond. Currently, some key aspects of the Free Cash Flow Improvement Plan are under detailed assessment, which requires further work before we can provide specific updates or guidance on future costs. However, we remain committed to achieving the previously provided free cash flow guideline of positive for 2021, which included an impact of $480 million from Australia. Moving on to slide four.

Nacho Abia: But we will continue paying strong attention to tight working capital management. On the operational improvement front, we are continuing to streamline operations, discover not only plasma operations but also manufacturing operations and all tangent functions, including yields enhancement, donor fee optimization, and improvement of industrial processes. While we have made substantial efforts to improve our cost structure last year, we remain focused on this continuous exercise in controlling SG&A spend to operate more efficiently. Looking beyond 2024, we have commenced a review of our real estate footprint and initiated a comprehensive portfolio analysis to ensure all projects and business units meet expected performance level. These final two pillars are inherently more complex and take more time, but they will contribute to cash flow improvements in the mid and long term. Real estate optimization includes consolidating underutilized office space, options for sale and leaseback transactions, and optimization of our leases. And the analysis of our portfolio assesses new opportunities and identifies underperformed assets.

Nacho Abia: But we will continue paying strong attention to tight working capital management.

Nacho Abia: On the operational improvement front, we are continuing to streamline operations, discover not only plasma operations but also manufacturing operations and all tangent functions, including yields enhancement, donor fee optimization, and improvement of industrial processes. While we have made substantial efforts to improve our cost structure last year, we remain focused on this continuous exercise in controlling SG&A spend to operate more efficiently. Looking beyond 2024, we have commenced a review of our real estate footprint and initiated a comprehensive portfolio analysis to ensure all projects and business units meet expected performance level. These final two pillars are inherently more complex and take more time, but they will contribute to cash flow improvements in the mid and long term. Real estate optimization includes consolidating underutilized office space, options for sale and leaseback transactions, and optimization of our leases. And the analysis of our portfolio assesses new opportunities and identifies underperformed assets.

Speaker Change: On the operational improvement front, we are continuing to streamline operations. This covers not only plasma operations, but also manufacturing operations and all tangent functions.

Speaker Change: including Yields Enhancement, Donor Fee Optimization, and Improvement of Industrial Processes.

Nacho: While we made substantial efforts to improve our cost structure last year, we remain focused on this continuous exercise in controlling SG&A spend to operate more efficiently. Looking beyond 2024, we have commenced a review of our real estate footprint and initiated a comprehensive portfolio analysis to ensure all projects and business units meet expected performance. These final two pillars are inherently more complex and take more time, but they will contribute to cash flow improvements in the mid and long term. Real estate optimization includes consolidating underutilized office space, options for sale and leaseback transactions, and optimization of our leases. And the analysis of our portfolio assesses new opportunities and identifies underperformed companies. To finish this chapter, let me say that Grifols possesses the necessary levels to enhance its cash flow profile and generate substantial additional free cash flow in 2025 and beyond. Currently, some key aspects of the Free Cash Flow Improvement Plan are under detailed assessment, which requires further work before we can provide specific updates or guidance on future costs. However, we remain committed to achieving the previously provided free cash flow guideline of positive for 2021, which included an impact of $480 million from Australia. Moving on to slide four.

Speaker Change: While we have made substantial efforts to improve our cost structure last year, we remain focused on this continuous exercise in controlling SDNA spend to operate more efficiently.

Nacho Abia: Looking beyond 2024, we have commenced a review of our real estate footprint and initiated a comprehensive portfolio analysis to ensure all projects and business units meet expected performance level. These final two pillars are inherently more complex and take more time, but they will contribute to cash flow improvements in the mid and long term. Real estate optimization includes consolidating underutilized office space, options for sale and leaseback transactions, and optimization of our leases. And the analysis of our portfolio assesses new opportunities and identifies underperformed assets.

Speaker Change: Looking beyond 2024, we have commenced a review of our real estate footprint and initiated a comprehensive portfolio analysis to ensure all projects and business units met expected performance level.

Nacho Abia: These final two pillars are inherently more complex and take more time, but they will contribute to cash flow improvements in the mid and long term. Real estate optimization includes consolidating underutilized office space, option for sales and leaseback transactions, and optimization of our leases. An analysis of our portfolio assesses new opportunities and identifies underperforming assets. To finish the chapter, let me say that Grifols possesses the necessary levels to enhance its cash flow profile and generate substantial additional free cash flow in 2025 and beyond. Currently, some key aspects of the free cash flow improvement plan are under detailed assessment, which require further work before we can provide specific updates or guidance on future cash flows.

Speaker Change: These final two pillars are inherently more complex and take more time, but they will contribute to cash flow improvements in the mid and long term.

Speaker Change: Real estate optimization includes consolidating underutilized office space, option for sales and leaseback transactions, and optimization of our leases. And the analysis of our portfolio assesses new opportunities and identifies underperforming assets.

Nacho: And the analysis of our portfolio assesses new opportunities and identifies underperformed companies. To finish this chapter, let me say that Grifols possesses the necessary levels to enhance its cash flow profile and generate substantial additional free cash flow in 2025 and beyond. Currently, some key aspects of the Free Cash Flow Improvement Plan are under detailed assessment, which requires further work before we can provide specific updates or guidance on future costs. However, we remain committed to achieving the previously provided free cash flow guideline of positive for 2021, which included an impact of $480 million from Australia. Moving on to slide four.

Nacho Abia: To finish this chapter, let me say that Grifols possesses the necessary levels to enhance its cash flow profile and generate substantial additional free cash flow in 2025 and beyond. Currently, some key aspects of the free cash flow improvement plan are under detailed assessment, which requires further work before we can provide specific updates or guidance on future cost flows. However, we remain committed to achieving the previously provided free cash flow guideline of positive for 2024, which included an impact of €480 million from extraordinary items. Moving on to slide 14, I want to address another of our top priorities, debt reduction. In the first half of the year, we have reduced our leverage from 6.3 times to 5.5 times, as per credit facilities. The leveraging process was primarily driven by the €1.6 billion proceeds from the Shanghai RAAS transaction, as well as a second-quarter's EBIDA improvement of more than €440 million. In the second half of 2024, we anticipate another reduction in our leverage ratio, primarily driven by continuous growth in EBDA and enhanced cash flow. We remain confident to achieve a target leverage ratio of 4.5 times by year end.

Speaker Change: To finish the chapter, let me say that Grifols possesses the necessary levels to enhance its cash flow profile and generate substantial additional free cash flow in 2025 and beyond.

Speaker Change: Currently, some key aspects of the Free Cash Flow Improvement Plan are under detailed assessment, which require further work before we can provide specific updates or guidance on future cash flows.

Nacho Abia: However, we remain committed to achieving the previously provided free cash flow guideline of positive for 2024, which included an impact of EUR 480 million from extraordinary items. Moving on to slide 14, I want to address another of our top priorities, debt reduction. In the first half of the year, we have reduced our leverage from 6.3 times to 5.5 times as per credit facilities. The deleveraging process was primarily driven by the EUR 1.6 billion proceeds from the Shanghai RAAS transaction, as well as Q2 EBITDA improvement of more than EUR 440 million. In the second half of 2024, we anticipate another reduction in our leverage ratio, primarily driven by continuous growth in EBITDA and enhanced cash flows.

Speaker Change: However, we remain committed to achieving the previously provided free cash flow guideline of positive for 2024, which included an impact of $480 million from extraordinary outcomes.

Nacho Abia: Moving on to slide 14, I want to address another of our top priorities, debt reduction. In the first half of the year, we have reduced our leverage from 6.3 times to 5.5 times, as per credit facilities. The leveraging process was primarily driven by the €1.6 billion proceeds from the Shanghai RAAS transaction, as well as a second-quarter's EBIDA improvement of more than €440 million. In the second half of 2024, we anticipate another reduction in our leverage ratio, primarily driven by continuous growth in EBDA and enhanced cash flow. We remain confident to achieve a target leverage ratio of 4.5 times by year end.

Nacho: I want to address another of our top priorities, debt reduction. In the first half of the year, we have reduced our leverage from 6.3 times to 5.5 times as a percentage of credit. The leveraging process was primarily driven by the €1.6 billion proceeds from the Shanghai Rush transaction, as well as a second-quarter SEBIDA improvement of more than €440 million in the second half of 2024. We anticipate another reduction in our leverage ratio, primarily driven by continuous growth in EVDA and enhanced cash flow. We remain confident that we can achieve a target leverage ratio of 4.5 times by year.

Speaker Change: Moving on to slide 14, I want to address another of our top priorities, debt reduction.

Speaker Change: In the first half of the year, we have reduced our leverage from 6.3 times to 5.5 times as per credit facilities.

Speaker Change: The leveraging process was primarily driven by the 1.6 billion euros proceeds from the Shanghai Rush transaction, as well as second quarter CVDA improvement of more than 440 million euros.

Speaker Change: In the second half of 2024, we anticipate another reduction in our leverage ratio, primarily driven by continuous growth in EVDA and enhanced cash flows.

Nacho Abia: We remain confident to achieve a target leverage ratio of 4.5x by year-end. My presentation is about to conclude, but I hope that with all the developments we have shared today, you can agree with us that Grifols is well on track to meet its full year 2024 guidance. The company's performance in the H1 of the year is clear testament of our ability to deliver on this year commitments. In terms of revenue, we continue to see a strong momentum in the H2 of the year, mainly due to IG growth on the back of a strong performance in the US and new opportunities in Europe, as well as subcutaneous IG continues to gain traction supported by launches in Europe.

Speaker Change: We remain confident to achieve a target leverage ratio of 4.5 times by year-end.

Nacho Abia: My presentation is about to conclude, but I hope that with all the developments we have shared today, you can agree with us that Grifol is well on track to meet its full year 2024 guidance. The company's performance in the first half of the year is a clear testament to our ability to deliver on this year's commitments. In terms of revenue, we continue to see strong momentum in the second half of the year, mainly due to IG growth on the back of a strong performance in the U.S. and new opportunities in Europe, as well as subcutaneous IG continuing to gain traction, supported by launchers. Alba means an increase, thanks to strong underlying demand in China, and improved performance on Alpha 1 by the end of this year will also contribute. Adjusted EVDA is expected to sequentially improve to over 1.8 billion euros, rising from a 24.2% margin in the second quarter to 27-28% in the second quarter. Supported by revenue growth with a better product mix, lower cost per liter, and increased operationality. And regarding free cash flow, we have deliberated an aggressive commitment in the second quarter, and we continue to be confident that we will reach positive cash flow for the future. To finish, let me summarize a few important things. My management approach focuses on the execution of clear and simple strategies with solid operational and financial discipline that provides optimized business.

Nacho Abia: My presentation is about to conclude, but I hope that with all the developments we have shared today, you can agree with us that Grifols is well on track to meet its full year 2024 guidance. The company's performance in the first half of the year is a clear testament to our ability to deliver on this year's commitments. In terms of revenue, we continue to see strong momentum in the second half of the year, mainly due to IG growth on the back of a strong performance in the U.S. and new opportunities in Europe, as well as subcutaneous IG continuing to gain traction, supported by launchers in Europe. Albumins increase, thanks to strong underlying demand in China, and improved performance on Alpha 1 by the end of this year will also contribute to this growth. Adjusted EBDA is expected to sequentially improve to over €1.8 billion, rising from a 24.2% margin in the second quarter to 27%-28% in the second half, supported by revenue growth with a better product mix, lower cost per liter, and increased operational leverage.

Speaker Change: My presentation is about to conclude, but I hope that with all the developments we have shared today, you can agree with us that Grifol is well on track to meet its full year 2024 guidance.

Speaker Change: The company's performance in the first half of the year is clear testament of our ability to deliver on this year's commitments.

Nacho Abia: In terms of revenue, we continue to see strong momentum in the second half of the year, mainly due to IG growth on the back of a strong performance in the U.S. and new opportunities in Europe, as well as subcutaneous IG continuing to gain traction, supported by launchers in Europe. Albumins increase, thanks to strong underlying demand in China, and improved performance on Alpha 1 by the end of this year will also contribute to this growth. Adjusted EBDA is expected to sequentially improve to over €1.8 billion, rising from a 24.2% margin in the second quarter to 27%-28% in the second half, supported by revenue growth with a better product mix, lower cost per liter, and increased operational leverage.

Speaker Change: In terms of revenue, we continue to see a strong momentum in the second half of the year, mainly due to IG growth on the back of a strong performance in the US and new opportunities in Europe , as well as subcutaneous IG continues to gain traction, supported by launches in Europe .

Nacho: Alba means an increase, thanks to strong underlying demand in China, and improved performance on Alpha 1 by the end of this year will also contribute. Adjusted EVDA is expected to sequentially improve to over 1.8 billion euros, rising from a 24.2% margin in the second quarter to 27-28% in the second quarter. Supported by revenue growth with a better product mix, lower cost per liter, and increased operationality. And regarding free cash flow, we have deliberated an aggressive commitment in the second quarter, and we continue to be confident that we will reach positive cash flow for the future. To finish, let me summarize a few important things. My management approach focuses on the execution of clear and simple strategies with solid operational and financial discipline that provides optimized business.

Nacho Abia: Albumins increase thanks to strong underlying demand in China, and improved performance on Alpha-1 by the end of this year will also contribute to this growth. Adjusted EBITDA is expected to sequentially improve to over EUR 1.8 billion, rising from a 24.2% margin in Q2 to 27 to 28% in H2, supported by revenue growth with better product mix, lower cost per liter, and increased operational leverage. Regarding free cash flow, we have delivered on commitment in Q2, and we continue to be confident that we will reach positive cash flow for the full year. To finish, let me summarize a few important takeaways. My management approach focus on the execution of clear and simple strategies with solid operational and financial discipline that provide optimized business performance.

Speaker Change: Alba means increase, thanks to a strong underlying demand in China, and improved performance on Alpha 1 by the end of this year will also contribute to this growth.

Nacho Abia: Albumins increase, thanks to strong underlying demand in China, and improved performance on Alpha 1 by the end of this year will also contribute to this growth. Adjusted EBDA is expected to sequentially improve to over €1.8 billion, rising from a 24.2% margin in the second quarter to 27%-28% in the second half, supported by revenue growth with a better product mix, lower cost per liter, and increased operational leverage. And regarding free cash flow, we have delivered a commitment in the second quarter, and we continue to be confident that we will reach positive cash flow for the full year.

Speaker Change: Adjusted EVDA is expected to sequentially improve to over 1.8 billion euros, rising from a 24.2% margin in the second quarter to 27-28% in the second half.

Nacho: Supported by revenue growth with a better product mix, lower cost per liter, and increased operationality. And regarding free cash flow, we have deliberated an aggressive commitment in the second quarter, and we continue to be confident that we will reach positive cash flow for the future. To finish, let me summarize a few important things. My management approach focuses on the execution of clear and simple strategies with solid operational and financial discipline that provides optimized business.

Speaker Change: Supported by revenue growth with better product mix, lower cost per liter, and increased operational leverage.

Nacho Abia: And regarding free cash flow, we have delivered a commitment in the second quarter, and we continue to be confident that we will reach positive cash flow for the full year. To finish, let me summarize a few important takeaways. My management approach focuses on the execution of clear and simple strategies with solid operational and financial discipline that provides optimized business performance. Through this, we will grow our businesses and expand our EBDA levels. We're improving free cash flow and reducing our debt over time. Many initiatives are already underway in this direction. Grifols Businesses is underpinned by solid market and product fundamentals, and we operate in a high-growth industry with compelling market dynamics. This environment offers us significant opportunities for expansion and innovation. In addition, our business operations portfolio and customer-based loyalty are a robust base to ensure we remain strong, and we continue to grow profitability as we move forward, allowing us to deliver substantial value for our shareholders. In this quarter, we have delivered on our commitment.

Nacho Abia: And regarding free cash flow, we have delivered a commitment in the second quarter, and we continue to be confident that we will reach positive cash flow for the full year.

Speaker Change: And regarding free cash flow, we have deliberate commitment in the second quarter and we continue to be confident that we will reach positive cash flow for the full year.

Speaker Change: To finish, let me summarize a few important takeaways.

Nacho Abia: To finish, let me summarize a few important takeaways. My management approach focuses on the execution of clear and simple strategies with solid operational and financial discipline that provides optimized business performance. Through this, we will grow our businesses and expand our EBDA levels. We're improving free cash flow and reducing our debt over time. Many initiatives are already underway in this direction. Grifols Businesses is underpinned by solid market and product fundamentals, and we operate in a high-growth industry with compelling market dynamics. This environment offers us significant opportunities for expansion and innovation. In addition, our business operations portfolio and customer-based loyalty are a robust base to ensure we remain strong, and we continue to grow profitability as we move forward, allowing us to deliver substantial value for our shareholders.

Speaker Change: My management approach focuses on the execution of clear and simple strategies with solid operational and financial discipline that provide optimized business performance.

Nacho: Through this, we will grow our businesses and expand our ABDA levels. We're improving free cash flow and reducing our debt over time. Many initiatives are already underway in this area. Grifols Businesses is underpinned by solid market and product fundamentals, and we operate in a high-growth industry with compelling market conditions. This environment offers us significant opportunities for expansion and improvement. In addition, our business operations portfolio and customer-based loyalty are a robust base to ensure we remain strong, and we continue to grow profitability as we move forward, allowing us to deliver substantial value for our students. In this quarter, we have delivered on our commitment.

Nacho Abia: Through this, we will grow our businesses and expand our EBITDA levels. We're improving free cash flow and reducing our debt over time. Many initiatives are already underway in this direction. Grifols' businesses is underpinned by solid market and product fundamentals, and we operate in a high growth industry with compelling market dynamics. This environment offers us significant opportunities for expansion and innovation. In addition, our business operations, product portfolio, and customer base loyalty are a robust base to ensure we remain strong and we continue to grow profitability as we move forward, allowing us to deliver substantial value for our shareholders. In this quarter, we have delivered on our commitment, executing the Shanghai RAAS transaction to reduce our debt, enhancing our governance, improving our cash flow, and accelerating our overall performance, all of which ensures we are on track to reach fiscal year 2024 guidance.

Speaker Change: Through this, we will grow our businesses and expand our ABDA levels, while improving pre-cost flow and reducing our debt over time.

Nacho: Grifols Businesses is underpinned by solid market and product fundamentals, and we operate in a high-growth industry with compelling market conditions. This environment offers us significant opportunities for expansion and improvement. In addition, our business operations portfolio and customer-based loyalty are a robust base to ensure we remain strong, and we continue to grow profitability as we move forward, allowing us to deliver substantial value for our students. In this quarter, we have delivered on our commitment.

Speaker Change: Many initiatives are already underway in this direction.

Speaker Change: Grifols Businesses is underpinned by solid market and product fundamentals, and we operate in a high-growth industry with compelling market dynamics.

Speaker Change: This environment offers us significant opportunities for expansion and innovation.

Speaker Change: In addition, our business operations portfolio and customer-based loyalty are a robust base to ensure we remain strong and we continue to grow profitability as we move forward.

Nacho Abia: In this quarter, we have delivered on our commitment. Executing the Shanghai RAAS transaction to reduce our debt, enhancing our governance, improving our cash flow, and accelerating our overall performance. All of which ensures we are on track to reach fiscal year '24 guidance. We are implementing a cash flow improvement plan that is already delivering results. And in terms of debt management, we have addressed our 2025 maturities and cleared a path for financial stability until 2027. Operational excellence and efficiencies continue to be a focal point for us, as they drive top-line growth, expand our margins, and improve our free cash flow, each of which is crucial for Grifols' long-term success and competitiveness. And finally, our innovation milestones are well on track for 2024. We're excited about the upcoming commercial launch of YIMMUGO in the U.S. and the progress made in the fibrinogen clinical trial during the first half of the year, which will continue in the second half with the initiation of approval process. These milestones mark significant progress in our innovation and growth strategy, enhancing our ability to broaden our offerings and, more importantly, better serve our patients by addressing unmet needs with differentiated products. Thanks for your attention and time today, and with that, Dani, back to you.

Speaker Change: allowing us to deliver substantial value for our shareholders.

Nacho: Executing the Shangri-La transaction to reduce our debt, enhancing our governance, improving our cash flow, and accelerating our overall performance. All of which ensures we are on track to reach fiscal year 2024, guys. We are implementing a cash flow improvement plan that is already delivering results. And in terms of debt management, we have addressed our 2025 maturities and cleared a path for financial stability until 2020. Operational excellence and efficiencies continue to be a focal point for us as they drive top-line growth, expand our margins, and improve our free cash flow, each of which is crucial for Olympus and for Grifols' long-term success and competitiveness. And finally, our innovation milestones are well on track for 2020. We're excited about the upcoming commercial launch of Jimugo in the U.S. and the progress made in the Fibrinogen clinical trial during the first half, which will continue in the second half with the initiation of approval. These milestones mark significant progress in our innovation and growth strategy, enhancing our ability to broaden our offerings and, more importantly, better serve our patients by addressing unmet needs with differentiated products. Thanks for your attention and time today, and with that, Danny, back to you.

Speaker Change: In this quarter, we have delivered on our commitment, executing the Shangri-La Rush transaction to reduce our debt, enhancing our governance, improving our cash flow, and accelerating our overall performance, all of which ensures we are on track to reach fiscal year 2024 guidance.

Nacho Abia: We are implementing a cash flow improvement plan that is already delivering the results. In terms of debt management, we have addressed our 2025 maturities and cleared a path for financial stability until 2027. Operational excellence and efficiencies continue to be a focal point for us as we drive top-line growth, expand our margins, and improve our free cash flow, each of which is crucial for us, for Grifols' long-term success and competitiveness. Finally, our innovation milestones are well on track for 2024. We're excited about the upcoming commercial launch of Yimmugo in the US and the progress made in the fibrinogen clinical trial during H1 of the year, which will continue in H2 with the initiation of the approval process.

Speaker Change: We are implementing a cash flow improvement plan that is already delivering results, and in terms of debt management, we have addressed our 2025 maturities and cleared a path for financial stability until 2027.

Speaker Change: Operational excellence and efficiencies continue to be a focal point for us as they drive top-line growth, expand our margins, and improve our free cash flow, each of which is crucial for Olympus, for Grifols' long-term success and competitiveness.

Nacho Abia: And finally, our innovation milestones are well on track for 2024. We're excited about the upcoming commercial launch of YIMMUGO in the U.S. and the progress made in the fibrinogen clinical trial during the first half of the year, which will continue in the second half with the initiation of approval process. These milestones mark significant progress in our innovation and growth strategy, enhancing our ability to broaden our offerings and, more importantly, better serve our patients by addressing unmet needs with differentiated products. Thanks for your attention and time today, and with that, Dani, back to you.

Nacho: And finally, our innovation milestones are well on track for 2020. We're excited about the upcoming commercial launch of Jimugo in the U.S. and the progress made in the Fibrinogen clinical trial during the first half, which will continue in the second half with the initiation of approval. These milestones mark significant progress in our innovation and growth strategy, enhancing our ability to broaden our offerings and, more importantly, better serve our patients by addressing unmet needs with differentiated products. Thanks for your attention and time today, and with that, Danny, back to you.

Speaker Change: And finally, our innovation milestones are well on track for 2024.

Speaker Change: We're excited about the upcoming commercial launch of Jimugo in the U.S. and the progress made in the Fibrinogen clinical trial during the first half of the year, which will continue in the second half with the initiation of the approval process.

Nacho: These milestones mark significant progress in our innovation and growth strategy, enhancing our ability to broaden our offerings and, more importantly, better serve our patients by addressing unmet needs with differentiated products. Thanks for your attention and time today, and with that, Danny, back to you. Thank you, Nacho.

These milestones mark significant progress in our innovation and growth strategy, enhancing our ability to broaden our offerings and, more importantly, better serve our patients by addressing unmet needs with differentiated products. Thanks for your attention and time today, and with that, Danny, back to you.

Nacho Abia: These milestones mark significant progress in our innovation and growth strategy, enhancing our ability to broaden our offerings, and more importantly, better serve our patients by addressing unmet needs with differentiated products. Thanks for your attention and time today. With that, Danny, back to you.

Speaker Change: These milestones mark significant progress in our innovation and growth strategy, enhancing our ability to broaden our offerings and, more importantly, better serve our patients by addressing unmet needs with differentiated products.

Daniel Segarra: Thank you, Nacho. Now, let's turn to the Q&A. Please remember to press star five to ask a question. We need to place a limit of two questions per analyst. If you have follow-ups, please dial star five again to get back on the list. After you ask your question, we will put you on mute to reduce any background noise. I see several hands raised. So, our first question comes from Joaquin. Joaquin, GB Capital.

Speaker Change: Thanks for your attention and time today, and with that, Danny, back to you.

Danny: Now, let's turn to the Q&A. Please remember to press star five to ask a question. We need to place a limit of two questions per analyst. If you have follow-ups, please dial star 5 again to get back on the line. After you ask your question, we will put you on mute to reduce any background noise. I see several hands raised.

Danny Segarra: Thank you, Nacho. Now, let's turn to the Q&A. Please remember to press star five to ask a question. We need to place a limit of two questions per analyst. If you have follow-ups, please dial star five again to get back on the list. After you ask your question, we will put you on mute to reduce any background noise. I see several hands raised. Our first question comes from Joaquin. Joaquin, JB Capital.

Danny: Thank you, Nacho. Now let's turn to the Q&A. Please remember to press star 5 to ask a question.

Danny: We need to place a limit of two questions per analyst. If you have follow-ups, please dial star 5 again to get back on the list.

Danny: After you ask your question, we will put you on mute to reduce any background noise.

Joaquin: So our first question comes from Joaqun, Joaqun, GBCapital. Yes, hello. Thanks for taking two quick questions. The first one is on gross margin. If you could please provide a bit more color on why the gross margin declined for the year, both quarter-on-quarter and year-on-year.

So our first question comes from Joaqun, Joaqun, GBCapital.

Danny: So, I see several hands raised.

Speaker Change: So our first question comes from Joaquin, Joaquin, GBCapital.

Unknown: Yes, hello. Thanks for taking two quick questions. The first one is on gross margin. If you could please provide a bit more color on why the gross margin declined in the second quarter of the year, both quarter-on-quarter and year-on-year. And what can we expect for the second half of the year, as I thought that cost per liter should already be running through P&L? And then, regarding financial expenses, which were very high this quarter as well, part of it was the GIC but, if you can provide a bit more color and then, what could be the run rate for the second half of the year, for financial expenses ones. You've used the [inaudible] to pay some of the debt. Thanks.

Joaquin: Yes, hello. Thanks for taking 2 quick questions. First one is on gross margin. If you could please provide a bit more color on why the gross margin decline in Q2, both quarter on quarter and year on year? What can we expect for H2, as I thought that cost per liter should already run through P&L? Regarding the financial expenses, which were very high this quarter as well. Part of it was the GIC, but if you can provide a bit more color, what could be the run rate for H2 for financial expenses once you've used the Shanghai RAAS proceeds to pay some of the debt? Thanks.

Joaquin Garcia-Quiros: Yes, hello. Thanks for taking 2 quick questions. First one is on gross margin. If you could please provide a bit more color on why the gross margin decline in Q2, both quarter on quarter and year on year? What can we expect for H2, as I thought that cost per liter should already run through P&L? Regarding the financial expenses, which were very high this quarter as well. Part of it was the GIC, but if you can provide a bit more color, what could be the run rate for H2 for financial expenses once you've used the Shanghai RAAS proceeds to pay some of the debt? Thanks.

Joaquin: Yes, hello. Thanks for taking two quick questions. First one is on gross margin. If you could please provide a bit more color on why did the gross margin decline in the second quarter of the year, both quarter-on-quarter and year-on-year?

Joaquin: And what can we expect for the second half of the year, as I thought that COSPR leaders should already be running through P&L? And then, regarding financial expenses. [inaudible] Thank you for your questions. Let me take the first one, and Danny will comment on the second one.

And what can we expect for the second half of the year, as I thought that COSPR leaders should already be running through P&L? And then, regarding financial expenses. [inaudible]

Joaquin: And what can we expect for the second half of the year, as I thought that COSPR leaders should already run through P&L?

Speaker Change: And then regarding the financial expenses, which were...

Speaker Change: Very high this quarter as well. Part of it was the GIC, but if you can provide a bit more tolerance, then what could be a run rate for the second half of the year for financial expenses once.

Thomas Glanzmann: Thank you for your questions. Let me take the first one, and Dani will comment on the second one. As for gross margin, I mean, one part of the activities that we have conducted this year has been a thorough analysis of our inventories. And as a result of that, we've taken a cautionary approach to our inventory management, and we recorded some provision in this quarter to take care of potential inventory issues. And this has been compensated, as you can see in the EBDA improvement, by operational efficiencies and by controlling well the GNA levels this quarter. But over the next month, we should expect normalized gross margin levels, at the levels of Q1 and higher. And the second question, Dani could take it.

Speaker Change: You've used the Shanghai RAS proceeds to pay some of the debt. Thanks.

Nacho Abia: Thank you for your question. Let me take the first one, and Danny will comment on the second one. As the gross margin, I mean, one part of the activities that we have conducted this year has been a thorough analysis of our inventories. As a result of that, we've taken a cautionary approach in our inventory management, and we recorded some provision in this quarter to take care of potential inventory issues. This has been compensated, as you could see in the EBITDA improvement by operational efficiencies and by controlling well the G&A levels this quarter. Over the next months, we should expect a normalized gross margin levels at the levels of the Q1 and higher.

Nacho: As for gross margin, I mean, one part of the activities that we have conducted this year has been a thorough analysis of our inventories. And as a result of that, we've taken a cautious approach to our inventory management, and we recorded some provision in this quarter to take care of potential inventory issues. And this has been compensated, as you can see in the EVDA improvement, by operational efficiencies and by controlling well the GNA levels this quarter. But over the next month, we should expect normalized gross margin levels at the levels of Q1 and high. And the second question? Danny could take it.

Speaker Change: Thank you for your question.

Speaker Change: Let me take the first one and Danny will comment on the second one. As the gross margin, I mean, one part of the activities that we have conducted this year has been a thorough analysis of our inventories.

Danny: And as a result of that, we've taken a cautionary approach in our inventory management and we recorded some provision in this quarter to take care of potential inventory issues.

Danny: And this has been compensated, as you could see in the ABDA improvement, by operational efficiencies and by controlling well the GNA levels.

Danny: But over the next months we should expect to normalize gross margin levels at the levels of the Q1 and higher.

Nacho Abia: The second question, Danny could take it.

Daniel Segarra: The financial expenses, Joaquin, this quarter, I mean, as long as we are repaying, you know, TLB--a significant portion of our TLB in the range of €1.1 billion, you know, that is more an accounting entry here that we got to recognize or bring from the balance sheet into the P&L, the deferred financial expenses. So this is a non-cash item, but it hits the P&L. The second question is more on financial expenses, on a round rate basis. Certainly, I will not take the second quarter as a run rate. I will take more in the first quarter. You know, it's certainly in the second quarter; we issued some new depth. But it's true, as I was mentioning, that as soon as, in July, we repay this €1.1 billion from the TLB, and we expect to repay the remaining proceed from the Shanghai RAAS transaction, the €1.6 billion, so the whole amount of financial expenses is going to be lower. So offsetting, you know, this new debt with a higher rate. Thank you. So, now it's gonna be James Gordon, G.P. Morgan, James, please. Hello, James Gordon, Joaquin Morgan.

Danny Segarra: The financial expenses, uh, again, this quarter, I mean, as long as we are paying, you know, TLB, a significant portion of our TLB in the range of EUR 1.1 billion, you know, that is more an accounting entry here that we gotta recognize or bring from the balance sheet into the P&L to defer financial expenses. So this is a non-cash item, but it hits the P&L. The second question is more on the financial expenses on a run rate basis. Certainly, I will not take Q2 as a run rate. I will take more the Q1.

Danny: And the second question, Danny could...

Danny: Take it.

Danny: The financial expenses, Joaquin, this quarter, I mean, as long as we are paying

Danny: you know, TLB, a significant portion of our TLB.

Speaker Change: In the range of $1.1 billion, you know, that is more an accounting entry here that we gotta recognize or bring from the balance sheet into the P&L, the deferred financial expenses. So this is a non-cash item, but it hits the P&L.

Speaker Change: And the second question is more on the financial expenses on a run rate basis. Certainly, I will not take second quarter as a run rate. I will take more the first quarter. You know, it's certainly in the second quarter we should some new debt.

Danny Segarra: You know, it's certainly in the Q2 we issued some new debt, but it's true, as I was mentioning, that as soon as in July, we repay this EUR 1.1 billion from the TLB, and we expect to repay the remaining proceeds from the Shanghai RAAS transaction, the EUR 1.6 billion. The whole amount of financial expenses is gonna be lower, offsetting, you know, this new debt with higher rates.

Danny: But it's true, as I was mentioning, that as soon as, in July, we repay this $1.1 billion from the TLB, and we expect to repay the remaining... Proceed from the Shanghai Rust transaction, the $1.6 billion, so the whole... amount of financial expenses is going to be lower. So offsetting, you know, this new debt with a higher rate. So now it's gonna be James Gordon, G.P. Morgan, James, please. Hello, James Gordon, Joaquin Morgan.

Speaker Change: But it's true, as I was mentioning, that as soon as, in July , we repay this $1.1 billion from the TLB, and we expect to repay the remaining...

Speaker Change: proceed from the Shanghai Rust transaction, the 1.6 billion, so the whole amount of financial expenses is going to be lower. So offsetting, you know, this new debt with a higher rate.

Joaquin: Thank you.

Joaquin Garcia-Quiros: Thank you.

Danny Segarra: Okay. Now it's gonna be James Gordon, JP Morgan. James, please.

Speaker Change: Thank you.

Daniel Segarra: Thank you. So, now it's gonna be James Gordon, G.P. Morgan, James, please. Hello, James Gordon, Joaquin Morgan.

Unknown: Thank you.

Daniel Segarra: So, now it's gonna be James Gordon, JP Morgan, James, please. Hello, James Gordon, Joaquin Morgan.

Daniel Segarra: So, now it's gonna be James Gordon, JP Morgan, James, please.

Speaker Change: So now it's gonna it's gonna be James Gordon, JP Morgan. James please.

James Daniel Gordon: Hello, James Gordon, JP Morgan. Thanks for taking the question. One question, one clarification. So free cash flow looks a lot better today, and I heard you were committed to positive free cash flow for the year. But I think the previous target was only very slightly positive. I think it was €5 million of cash generation. Are you still thinking it might be only just into the positive, or given all the initiatives you were talking about, could you actually do quite a bit more than that? Could you have material cash generation this year? And on that--you previously said 2 to €2.5 billion of free cash flow 2025-'27, and that's under review. Should we assume we get an update on that at the October event? Is that the plan there? That was the question. The clarification was just on the situation with Brookfield. Is there any deadline by which we might get an update, or do we have to have an update so we get clarity? Or is diligence just open-ended? Can you remind me how it works in Spain? Can they just do diligence for as long as they want, or is there a deadline when we get clarity?

James Daniel Gordon: Thanks for taking the question. One question, one clarification. So free cash flow looks a lot better today, and I heard you were committed to positive free cash flow for the year. But I think the previous target was only very slightly positive. I think it was 5 million euros of cash.

James Gordon: Hello, James Gordon, JP Morgan. Thanks for taking the question. One question, one clarification. On the question, free cash flow looks a lot better today, and I heard you were committed to positive free cash flow for the year, but I think the previous target was only very slightly positive. I think it was EUR 5 million of cash generation. Are you still thinking it might be only just into the positive? Or given all the initiatives you were talking about, could you actually do quite a bit more than that? Could you have material cash generation this year? I think you previously said EUR 2 to 2.5 billion of free cash flow, 2025 to 2027, and that's under review. Should we assume we get an update on that at the October event?

James Daniel Gordon: Hello James Gordon, Joaquin Morgan, thanks for taking the question. One question, one clarification. On the question, so free cash flow looks a lot better today. I heard you were committed to positive free cash flow for the year, but I think the previous target was only very slightly positive. I think it was 5 million euros of cash generation.

James Daniel Gordon: Are you still thinking it might be only just into the positive, or given all the initiatives you were talking about, could you actually do quite a bit more than that? Could you have material cash generation this year? And on that, you previously said two to two and a half billion of free cash flow 2025-2027, and that's under review. Should we assume we get an update on that at the October event? Is that the plan there? That was the question. The clarification was just on the situation with Brookfield. Is there any deadline by which we might get an update, or do we have to have an update so we get clarity? Or is diligence just open-ended? Can you remind me how it works in Spain? Can they just do diligence for as long as they want, or is there a deadline when we get parity? Thank you.

Speaker Change: Are you still thinking it might be only just into the positive or given all the initiatives you were talking about, could you actually do quite a bit more than that? Could you have material cash generation this year?

Speaker Change: And on the, you previously said there's two and a half billion of free cash flow 2025-27 and that's under review. Should we assume we get an update on that at the October event? Is that the plan there?

James Gordon: Is that the plan there? That was the question there. The clarification was just on the situation with Brookfield, is there any deadline by which we might get an update, or we have to have an update so we get clarity? Or is diligence just open-ended? Can you remind me how does it work in Spain? Can they just do diligence as long as they want, or is there a deadline when we get clarity?

James Daniel Gordon: The clarification was just on the situation with Brookfield. Is there any deadline by which we might get an update, or do we have to have an update so we get clarity? Or is diligence just open-ended? Can you remind me how it works in Spain? Can they just do diligence for as long as they want, or is there a deadline when we get parity? Thank you.

Speaker Change: That was the question. The clarification was just on the situation with Brookfield, is there any deadline by which we might get an update or we have to have an update so we get clarity or is diligence just open-ended? Can you remind me how does it work in Spain? Can they just do diligence as long as they want or is there a deadline when we get clarity?

Nacho: Can they just do diligence for as long as they want, or is there a deadline when we get parity? Thank you. Thank you for your question. On free cash flow, and as I have mentioned, I think that we're actively working on that. We are not ready to provide any guidance, and we're going to try to maximize cash flow this year. But we remain, at this point, still with our guidance of positive cash flow during the year.

Can they just do diligence for as long as they want, or is there a deadline when we get parity? Thank you.

Nacho Abia: Thank you for your question. On the free cash flow, as I have mentioned, I think that we're actively working on that. We are not ready to provide any guidance and we're gonna try to maximize cash flow this year. We remain at this point still with our guidance of a positive cash flow during the year. The activity will continue and the focus on cash flow is gonna continue being the more relevant focus for the company. As I mentioned, I think that there's still a lot of unknowns and we remain committed to the positive cash flow this year. We will try to make it better if we can, but definitely not a commitment at this point.

Thomas Glanzmann: Thank you for your question. On free cash flow, and as I have mentioned, I think that we're actively working on that. We are not ready to provide any guidance, and we're going to try to maximize cash flow this year. But we remain, at this point, still with our guidance of positive cash flow during the year. The activity will continue, and the focus on cash flow is going to continue being the more relevant focus for the company. But, as I mentioned, I think that there are still a lot of unknowns, and we remain committed to positive cash flow this year. And we will try to make it better if we can, but definitely not a commitment at this point. As for next year's cash flow, I think that it was mentioned in the last call, and again, we are not ready to provide just guidance for that. But October, Capital Markets Day, might be a good occasion for providing that guidance, and I expect to be ready by then. As for your second question, no, there is no deadline; there is no time that we know. And as Thomas has mentioned, there are no further comments on that topic because we don't know more than what has been disclosed. James, I think, as Nacha just said, there is no deadline, but it's important to make sure that Brookfield gets all the relevant information that they need to really assess what they're looking at in the due diligence. So there is no deadline that has been set.

Nacho Abia: Thank you for your question. On free cash flow, and as I have mentioned, I think that we're actively working on that. We are not ready to provide any guidance, and we're going to try to maximize cash flow this year. But we remain, at this point, still with our guidance of positive cash flow during the year. The activity will continue, and the focus on cash flow is going to continue being the more relevant focus for the company. But, as I mentioned, I think that there are still a lot of unknowns, and we remain committed to positive cash flow this year. And we will try to make it better if we can, but definitely not a commitment at this point. As for next year's cash flow, I think that it was mentioned in the last call, and again, we are not ready to provide just guidance for that. But October, Capital Markets Day, might be a good occasion for providing that guidance, and I expect to be ready by then. As for your second question, no, there is no deadline; there is no time that we know. And as Thomas has mentioned, there is no further comments on that topic because we don't know more than what has been disclosed.

Speaker Change: Thank you.

Speaker Change: Thank you for your question. On the free cash flow, and as I have mentioned, I think that we're actively working on that.

Speaker Change: We are not ready to provide any guidance and we are going to try to maximize cash flow this year.

Speaker Change: But we remain, at this point, still with our guidance of positive cash flow during the year. The activity will continue and the focus on cash flow is going to continue being...

Nacho: The activity will continue, and the focus on cash flow is going to continue being the more relevant focus for the company. But, as I mentioned, I think that there are still a lot of unknowns, and we remain committed to positive cash flow this year. And we will try to make it better if we can, but definitely not a commitment at this point. As for next year's cash flow, I think that it was mentioned in the last call, and again, we are not ready to provide just guidance for that. But October, Capital Markets Day, might be a good occasion for providing that guidance, and I expect to be ready by then. As for your second question, no, there is no deadline; there is no time that we know. And as Thomas has mentioned, there are no further comments on that topic because we don't know more than what has been disclosed. James, I think, as Nacha just said, there is no deadline, but it's important to make sure that Brookfield gets all the relevant information that they need to really assess what they're looking at in the due diligence. So there is no deadline that has been set.

Speaker Change: the more relevant focus for the company. But as I mentioned, I think that there's still a lot of unknowns and we remain committed to the positive cash flow this year.

Speaker Change: But and we will try to make it better if we can but definitely not a commitment at this point as for 20 The next year's cash flow. I think that it was mentioned in the last call

Nacho Abia: As for the next year's cash flow, I think that it was mentioned in the last call. Again, we are not ready to provide just guidance for that. October, at the Capital Markets Day, might be a good occasion for providing that guidance, and I expect to be ready by then. As for your second question, no, there are no deadlines. There is no time that we know. As Thomas has mentioned, there are no further comments on that topic because we don't know more than what has been disclosed.

Speaker Change: And again, we are not ready to provide just guidance for that. October , the Capital Markets Day, might be a good occasion for providing that guidance, and I expect to be ready by then.

Nacho: But October, Capital Markets Day, might be a good occasion for providing that guidance, and I expect to be ready by then. As for your second question, no, there is no deadline; there is no time that we know. And as Thomas has mentioned, there are no further comments on that topic because we don't know more than what has been disclosed. James, I think, as Nacha just said, there is no deadline, but it's important to make sure that Brookfield gets all the relevant information that they need to really assess what they're looking at in the due diligence. So there is no deadline that has been set.

Speaker Change: As for your second question, no, there is no deadline, there is no time that we know and as Thomas has mentioned, there is no further comments on that topic because we don't know more than what has been disclosed.

Nacho Abia: And as Thomas has mentioned, there is no further comments on that topic because we don't know more than what has been disclosed. James, I think, as Nacha just said, there is no deadline, but it's important to make sure that Brookfield gets all the relevant information that they need to really assess what they're looking at in the due diligence. So there is no deadline that has been set.

Nacho Abia: And as Thomas has mentioned, there is no further comments on that topic because we don't know more than what has been disclosed.

Thomas Glanzmann: James, I think as Nacho just said, you know, there is no deadline, but it's important to make sure that Brookfield gets all the relevant information that they need to really assess what they're looking at in the due diligence. There is no deadline that has been set.

James Daniel Gordon: James, I think as Nacha just said, you know, there is no deadline, but it's important to make sure that Brookfield gets all the relevant information that they need to really assess what they're looking at in the due diligence. So there is no deadline that has been set.

Thomas Glanzmann: James, I think, as Nacho just said, there is no deadline, but it's important to make sure that Brookfield gets all the relevant information that they need to really assess what they're looking at in the due diligence. So, there is no deadline that has been set.

James Gordon: Thank you.

Unknown Executive: So there is no deadline that has been set. Thank you, James. Tom Jones, please.

So there is no deadline that has been set.

Danny Segarra: Thank you, James. Tom Jones, please. We're looking forward to hearing your question, please.

Speaker Change: Thank you.

James Daniel Gordon: Thank you, James.

Daniel Segarra: Thank you, James. Tom Jones, please. We're looking forward to hearing your question, please.

James Daniel Gordon: Tom Jones, please. We're looking forward to hearing your question, please.

Thomas M. Jones: We're looking forward to hearing your question, please. Good afternoon. I've got two, one operational and one other one. On the operational side, I just wondered if you could share... More detailed comments around the outlook for NATBusiness and the Alpha One franchise, two of your reasonable revenue generators, which have been struggling a bit of late, and when you expect those to return to a sort of normalized. [inaudible] And then the second question, I hate to harp back.

We're looking forward to hearing your question, please.

Tom Jones: Good afternoon. I've got two. Sort of one operational, and one other one. On the operational side, I just wondered if you could share some more detailed comments around the outlook for the NAT business, and the Alpha-1 franchise too, of your reasonable revenue generators, which have been struggling a bit of late, and when you expect those to return to a sort of more normalized growth pattern. Then the second question, I'd harp back to the free cash flow and the working capital items. I just wondering if you could give us a little bit more in terms of specifics on some of the things you're working on, particularly around inventories and receivables.

Tom Jones: Good afternoon. I've got two, one operational and one other one. On the operational side, I just wondered if you could share some more detailed comments around the outlook for NAT Business and the Alpha One franchise too, of your reasonable revenue generators, which have been struggling a bit of late, and when you expect those to return to a sort of normalized growth pattern. And then the second question, to harp back to free cash flow and the working capital items. But I was just wondering if you could give us a little bit more, in terms of specifics on some of the things you're working on, particularly around inventories and receivables. You know, I wondered if there's been any change in your approach to factoring receivables, whether you're going to be a bit more enthusiastic with that. And then around inventories, one of the reasons that Grifols has historically carried high inventory levels, is it tended to operate in a fairly cautious basis, it liked to carry significant safety stock to take advantage of commercial opportunities, it typically had a longer hold to look back period on the role of plasma, carried more inventory for [inaudible] to be fair safety in 2020. To what extent is your policy around free cash flow, perhaps slightly got to be balanced against the increased risks of running tighter inventories, or perhaps paying up to factor a few more receivables here and there? Let me comment on Nat and the free-cast flow, and Roland will On Nat, I mean, the...

Thomas M. Jones: Good afternoon. I've got two, so one operational and one other one. On the operational side, I just wondered if you could share some more detailed comments around the outlook for the NATBusiness and the AlphaOne franchise too.

Speaker Change: of your reasonable revenue generators, which have been struggling a bit of late, and when you expect those to return to a sort of more normalised.

Tom Jones: And then the second question, to harp back to free cash flow and the working capital items. But I was just wondering if you could give us a little bit more, in terms of specifics on some of the things you're working on, particularly around inventories and receivables. You know, I wondered if there's been any change in your approach to factoring receivables, whether you're going to be a bit more enthusiastic with that.

Speaker Change: Growth Pattern.

Speaker Change: And then the second question, I hate to harp back to the free cash flow and the working capital items, but I was just wondering if you could give us a little bit more in terms of specifics on some of the things you're working on, particularly around inventories and receivables.

Thomas M. Jones: Free Cash Flow and the Working Capital Items. But I was just wondering if you could give us a little bit more in terms of specifics on some of the things you're working on, particularly around inventories and receivables. You know, I wondered if there's been any change in your approach to factoring receivables, whether you're going to be a bit more... [inaudible] To what extent is your policy around free cash flow perhaps slightly got to be balanced against the increased risks of running tighter inventories or perhaps paying up to factor a few more receivables? Let me comment on Nat and the free-cast flow, and Roland will On Nat, I mean, the...

Tom Jones: You know, I wondered if there's been any change in your approach to factoring receivables, whether you're gonna be a bit more enthusiastic with that. Then around inventories, you know, one of the reasons that Grifols has historically carried high inventory levels is it tended to operate in a fairly cautious basis. It liked to carry significant safety stocks to take advantage of commercial opportunities. It typically had a longer hold-the-look-back period on the raw plasma, carried more in inventory for a rainy day, which, to be fair, saved you in 2020. You know, to what extent is your policy around free cash flow perhaps slightly gotta be balanced against the increased risks of running tighter inventories or perhaps paying up to factor a few more receivables here and there?

Speaker Change: You know, I wondered if there's been any change in your approach to factoring receivables, whether you're going to be a bit more enthusiastic with that. And then around inventories, you know, one of the reasons that Grifols has historically carried...

Tom Jones: And then around inventories, one of the reasons that Grifols has historically carried high inventory levels, is it tended to operate in a fairly cautious basis, it liked to carry significant safety stock to take advantage of commercial opportunities, it typically had a longer hold to look back period on the role of plasma, carried more inventory for [inaudible] to be fair safety in 2020. To what extent is your policy around free cash flow, perhaps slightly got to be balanced against the increased risks of running tighter inventories, or perhaps paying up to factor a few more receivables here and there?

Speaker Change: High Inventory levels is it tended to operate in a fairly cautious basis it like to carry

Speaker Change: significant safety stocks to take advantage of commercial opportunities. It typically had a longer hold and look back period on the raw plasma, carried more in inventory for a rainy day, which, to be fair, saved you in 2020, to what extent is your policy around free cashflow perhaps slightly got to be balanced against the increased risks of running.

Speaker Change: Tyta Inventories, or perhaps paying up for Factor a few more receivables here and there.

Nacho Abia: Let me comment on that and on the free cash flow, and Roland will make some comments about Alpha-1 situation. On that, I mean, the NAT business is pretty much flat versus previous year at this point. We think we have reached the bottom of the situation, and from here, I mean, we have positive expectations based on tenders and based on business prospects that the business will start growing again. This is about NAT. On the free cash flow activities, as I mentioned in the last call, I mean, obviously in order to improve in the short term, the main levers that we had was working capital and mostly inventory.

Nacho Abia: Let me comment on NAT and the free-cast flow, and Roland will make some comments on the Alpha 1 situation. On NAT, I mean, the NAT business is pretty much flat versus the previous year at this point, and we think we have reached the bottom of the situation, and from here--I mean, we have positive expectations based on tenders and based on business prospects that the business will start growing again. So this is about NAT. On the free cash flow activities, as I mentioned in the last call, I mean, obviously, in order to improve in the short term, the main levers that we had were working capital, and mostly inventory. It has not been a substantial--compared to Q1, there has not been a substantial change in policy from receivables or payables, but in the case of inventory, we have worked very close to the teams across functional efforts, I mean, with the plasma collection team, the biopharma team, the supply chain, and finance, in order to tie inventory management. We are very much aware that we still have to be able to face opportunities in the market. The market is growing nicely, and we have to take advantage of that. But at the same time, there are opportunities to make more efficient the way to handle inventory, and that's what we have been doing, and that's the reason why--one of the biggest reasons for the free cash flow this year. That's from me, and maybe Roland can comment on Alpha 1 situation.

Nat: Let me comment on Nat and the Freecast Flow and Roland will make some comments about the Alpha 1 situation.

Nacho: The NAD business is pretty much flat versus the previous year at this point, and we think we have reached the bottom of the situation, and from here on, I mean, we have positive expectations based on tenders and based on business, prospects that the business will start growing again. So this is about that. On the free cash flow activities, as I mentioned in the last call, I mean, obviously, in order to improve in the short term, the main levers that we had were working capital and, mostly, inventory. It has not been a substantial change, compared to Q1, there has not been a substantial change in policy from receivables or payables, but in the case of inventory, we have worked very close to the teams across functional efforts, I mean, with the plasma collection team, the biopharma team, the supply chain, and finance, in order to tie inventory management. We are very much aware that we still have to be able to face opportunities in the market. The market is growing nicely, and we have to take advantage of that. But at the same time, there are opportunities to make the way to handle inventory more efficient.

Roland: The NAD business is pretty much flat versus previous year at this point and we think we have reached the bottom of the situation and from here, I mean, we have positive expectations based on tenders and based on business.

Roland: prospects that the business will start growing again.

Roland: So, this is about that. On the Frequency Flow Activities...

Speaker Change: As I mentioned in the last call, I mean, obviously, in order to improve in the short term, the main levers that we had was working capital and mostly inventory. It has not been a substantial, compared to Q1, it has been not a substantial change in policy from receivables or payables. But in the case of inventory, we have worked very close to the teams.

Nacho: It has not been a substantial change, compared to Q1, there has not been a substantial change in policy from receivables or payables, but in the case of inventory, we have worked very close to the teams across functional efforts, I mean, with the plasma collection team, the biopharma team, the supply chain, and finance, in order to tie inventory management. We are very much aware that we still have to be able to face opportunities in the market. The market is growing nicely, and we have to take advantage of that. But at the same time, there are opportunities to make the way to handle inventory more efficient.

Nacho Abia: It has not been a substantial change compared to Q1 in policy from receivables or payables. In the case of inventory, we have worked very close to the teams across in cross-functional efforts, I mean, with the plasma collection team, the Biopharma team, the supply chain, finance, in order to tie the inventory management. We are very much aware that we still have to be able to face opportunities at the market. The market is growing nicely, and we have to take advantage of that. At the same time, there are opportunities to make more efficient the way to handle inventory, and that's what we have been doing, and that's the reason why, one of the biggest reasons for the free cash flow this year.

Roland: In a cross-functional effort, I mean, with the plasma collection team, the biopharma team, the supply chain, finance, in order to...

Nacho Abia: The market is growing nicely, and we have to take advantage of that. But at the same time, there are opportunities to make more efficient the way to handle inventory, and that's what we have been doing, and that's the reason why--one of the biggest reasons for the free cash flow this year. That's from me, and maybe Roland can comment on Alpha 1 situation.

Roland: tied the inventory management. We are very much aware that we still have to be able to face opportunities at the market. The market is growing nicely.

Roland: And we have to take advantage of that, but at the same time, there are opportunities to make more efficient the way to handle inventory. And that's what we have been doing, and that's the reason why, one of the biggest reasons for the free cash flow this year.

Nacho: And that's what we have been doing. And that's the reason why, one of the biggest reasons for the free cash flow. That's from me, and maybe Roland can comment on Alpha One's situation.

Nacho Abia: That's from me, and maybe Roland can comment on Alpha-1 situation.

Roland Wandeler: Of course, Tom, Alpha One is a key franchise for us and will remain a key franchise for us, both as a market leader in this space with a 70% share, but also looking at the large unmet need with 90% of patients still undiagnosed. We're working to further strengthen our position as a leader in this marketplace for the short and long term with the European launches of 4 and 5 gram vials, and in the U.S. through the strengthening of our service offering by our specialty pharmacy partner. As you know, in the U.S., home care is an important pillar of the value that we can provide for patients, and it's there that we saw an opportunity to further strengthen our offering. We transitioned to a new specialty pharmacy provider in the second quarter, and as with any transition like that, we expected and saw that there are some temporary impacts through the reauthorization of patients. Having said that, we are at the tail end of this transition, and we are very encouraged by the feedback we are getting from the marketplace and expect that this change will bear fruit towards the end of this year. Beyond that, we are working to further increase convenience for patients by developing our subcu dosing option, as well as advancing the body of evidence throughout our Sparta trials. And beyond that, of course, making sure that we can continue to be the leader to make sure that we can help identify and treat patients with Alpha 1 under trypsin deficiency. So from our side, it's a marketplace we stay committed to and where we expect growth over the long term, and we believe that with the transition that we have in Q2, we're set up for a better position moving forward. Good, that's all very clear. I've got a couple more, but I'll get back...

Roland Wandeler: Of course, Tom, Alpha-1 is a key franchise for us and will remain a key franchise for us, both as a market leader in this space with 70% share, but also looking at the large unmet need with 90% of patients still undiagnosed. We're working to further strengthen our position as a leader in this marketplace over short and long with the European launches of 4- and 5-gram vials and in the US through the strengthening of our service offering via our specialty pharmacy partner. As you know, in the US, home care is an important pillar of the value that we can provide for patients. It's there where we saw an opportunity to further strengthen our offering. We transitioned to a new specialty pharmacy provider in Q2.

Roland: That's from me, and maybe Roland can comment on Alpha 1's situation.

Roland: Of course, Tom Alpha One is a key franchise for us and will remain a key franchise for us.

Roland: both as a market leader in this space with 70% share, but also looking at the larger need with 90% of patients still undiagnosed.

Roland: We are working to further strengthen our position as a leader in this marketplace over short and long with the European launches of 4 and 5 gram vials.

Roland: And in the U.S., through the strengthening of our service offering by our specialty pharmacy partner. As you know, in the U.S., home care is an important pillar of the value that we can provide for patients. And it's there where we saw an opportunity to further strengthen our offering.

Roland Wandeler: We transitioned to a new specialty pharmacy provider in the second quarter, and as with any transition like that, we expected and saw that there were some temporary impacts through the reauthorization of patients. Having said that, we are at the tail end of this transition, and we are very encouraged by the feedback we are getting from the marketplace and expect that this change will bear fruit towards the end of this year. Beyond that, we are working to further increase convenience for patients by developing our sub-Q dosing option, as well as advancing the body of evidence through our SPARTA trials. And beyond that, of course, making sure that we can continue to be the leader to make sure that we can help identify and treat patients with alpha-1 trypsin deficiency. So from our side, it's a marketplace we stay committed to and where we expect growth over the long term, and we believe that with the transition that we have in Q2, we're set up for a better position moving forward. Good, that's all very clear. I've got a couple more, but I'll get back...

Roland: We transitioned to a new specialty pharmacy provider in the second quarter.

Roland Wandeler: As with any transition like that, we expected and saw that there are some temporary impacts through the reauthorization of patients. Having said that, we are at the tail end of this transition and we are very encouraged by the feedback we are getting from the marketplace and expect that this change will bear fruit towards the end of this year. Beyond that, we are working to you know further increase convenience for patients with developing our subQ dosing option, as well as advancing the body of evidence through our SPARTA trials. Beyond that, of course, making sure that we can continue to be the leader to make sure that we can you know help identify and treat patients with Alpha-1 antitrypsin deficiency.

Roland: And as with any transition like that, we expected and saw that there are...

Roland: Some temporary impacts through the reauthorization of patients.

Roland: Having said that, we are at the tail end of this transition and we are very encouraged by the feedback we are getting from the marketplace.

Roland: and expect that this change will bear fruit towards the end of this year.

Roland Wandeler: Beyond that, we are working to further increase convenience for patients by developing our subcu dosing option, as well as advancing the body of evidence throughout our Sparta trials. And beyond that, of course, making sure that we can continue to be the leader to make sure that we can help identify and treat patients with Alpha 1 under trypsin deficiency. So from our side, it's a marketplace we stay committed to and where we expect growth over the long term, and we believe that with the transition that we have in Q2, we're set up for a better position moving forward.

Roland: Beyond that, we are working to further increase convenience for patients with developing our sub-Q dosing option as well as advancing the body of evidence through our SPARTA trials.

Roland Wandeler: Beyond that, of course, making sure that we can continue to be the leader to make sure that we can you know help identify and treat patients with Alpha-1 antitrypsin deficiency. From our side, it's a marketplace we stay committed to and where we expect growth over the long term. We believe that with the transition that we have in Q2, we're set up for a better position moving forward.

Roland: And beyond that, of course, making sure that we can continue to be the leader to make sure that we can, you know, help identify...

Roland: and treat patients with Alpha-1 on the trypsin deficiency. So from our side, it's a marketplace we stay committed to and where we expect growth over the long term. And we believe that with the transition that we have in Q2, we're set up for a better position moving forward.

Roland Wandeler: From our side, it's a marketplace we stay committed to and where we expect growth over the long term. We believe that with the transition that we have in Q2, we're set up for a better position moving forward.

Roland Wandeler: So from our side, it's a marketplace we stay committed to and where we expect growth over the long term, and we believe that with the transition that we have in Q2, we're set up for a better position moving forward. Good, that's all very clear. I've got a couple more, but I'll get back...

Tom Jones: Good, that's all very clear. I've got a couple more, but I'll get back on the queue.

Tom Jones: Good. That's all very clear. I've got a couple more, but I'll get back in the queue.

Speaker Change: Good, that was all very clear. I've got a couple more but I'll get back in the queue.

Daniel Segarra: Thank you, Tom. Thank you, Roland. Now I would like to move to Barclays. Charles, Charles Pitman, please.

Nacho Abia: Thank you, Tom. Thank you, Roland. Now I would like to move to Barclays. Charles Pitman-King, please.

Speaker Change: Thank you, Tom. Thank you, Roland. Now I would like to move to Barclays. Charles. Charles Pitman, please.

Charles Pitman-King: Hi guys. Thank you very much. Charles Pitman-Kings and Barclays. Thanks so much for taking my questions. Just starting off, a quick question on your net financial, your non-current financial assets. I'm just wondering what the kind of key driver is for that increase in the quarter. And then just secondly, a question for Nacho, given you've been in the door for four months now, and just I would love to get more of an idea of how you're thinking about Grifols now that you've got more to look around and what degree of work you believe is still needed to be complete--to execute this Grifols turnaround story started back in 2022, and to really convince investors that you are in a position to prevent any of the actions that have created recent overhangs on shares, mentioned in press releases from repeating. For example, in relation to the accounting [inaudible] you highlight in the press release from today. Thank you.

Charles Pitman-King: Hi, guys. Thank you very much. Charles Pitman-King from Barclays. Thanks very much for taking my questions. Just starting off, quick question on your non-current financial assets. Just wondering what the kind of key driver is for that increase in the quarter.

Charles Pitman: Hi, guys. Thank you very much. Charles Whitman from Kings and Barclays. Thanks very much for taking my questions. Just starting off, a quick question on your net financial, your noncurrent financial assets.

Charles Pitman: Thanks so much for taking my questions. Just starting off, a quick question on your net financial, your non-current financial assets. I'm just wondering what the kind of key driver is for that increase in the court. And then just secondly, a question for Nacho, given you've been in the door for four months now, and just I would love to get more of an idea of how you're thinking about Grifols now that you've... around and what degree of work you believe is still needed to get the turnaround story started back in and really convince investors that you are in a position to prevent any of the actions that have created recent overhangs on shares Press releases. For example, in relation to the accounting..., you highlight in the press release from today. Thank you.

Speaker Change: I'm just wondering what the kind of key driver is for that increase in the quarter.

Charles Pitman: And then just secondly, a question for Nacho, given you've been in the door for four months now, and just I would love to get more of an idea of how you're thinking about Grifols now that you've... around and what degree of work you believe is still needed to get the turnaround story started back in and really convince investors that you are in a position to prevent any of the actions that have created recent overhangs on shares Press releases. For example, in relation to the accounting..., you highlight in the press release from today. Thank you. Thank you. I'll take the second question. I will ask Danny to take on the first one.

And then just secondly, a question for Nacho, given you've been in the door for four months now, and just I would love to get more of an idea of how you're thinking about Grifols now that you've... around and what degree of work you believe is still needed to get the turnaround story started back in and really convince investors that you are in a position to prevent any of the actions that have created recent overhangs on shares Press releases. For example, in relation to the accounting..., you highlight in the press release from today. Thank you.

Charles Pitman-King: Just secondly, a question for Nacho, given you've been in the door for four months now, and just I would love just to get more of an idea of how you're thinking about Grifols, now you've kind of had more of a look around, and what degree of work you believe is still needed to be complete to execute this Grifols turnaround story started back in Q3 2022, and to really convince investors that you are in a position to prevent any of the actions that have created recent overhangs to shares mentioned in press releases from repeating, for example, in relation to the accounting misinterpretation as you highlighted in the press release from today. Thank you.

Speaker Change: And then, just secondly, a question for Nacho, given you've been in the door for four months now. I would love just to get more of an idea of how you're thinking about Grifols, now you've kind of had more of a look around, and what degree of work you believe still needed to be complete to execute this Grifols turnaround story, started back in 3Q22, and to really convince investors.

Speaker Change: that you are in a position to prevent any of the actions that have created recent overhangs to shares mentioned in press releases from repeating. For example, in relation to the accounting misinterpretation as you highlight in the press release from today. Thank you.

Nacho Abia: Thank you. I'll take the second question. I will ask Dani to take on the first one. But my impression after four months in the job is that this is a phenomenal company with a fantastic business model, very solid business fundamentals, with opportunities that started to develop back at the beginning of 2023 and that we continue enjoying. And I think that the results that we are seeing in this quarter and in this half are a testament to that. I mean, all the financial syndicators are improving and are showing the right direction. I mean, profit, EBITDA. We know we have to work on free cash flow, and we are working on that. But everything else is really moving well. And most importantly for me, I think when I see this 9% growth in biopharma, that's a phenomenal springboard to continue generating efficiencies and increasing our EBITDA portfolio. So, how do you convince investors? I think that this is a loaded question.

Nacho Abia: Thank you. I'll take the second question. I will ask Danny to take on the first one. You know, my impression after four months in the job is that this is a phenomenal company with a fantastic business model, very solid business fundamentals with opportunities that started to develop back in the beginning of 2023 and that we continue enjoying. I think the results that we are seeing in this quarter and in H1, I think are a testament of that. I mean, all financial indicators are improving, are showing the right direction. I mean, profit, EBITDA. We know we have to work on free cash flow, and we are working on that.

Speaker Change: Thank you. I'll take the second question. I will ask Dani to take on the first one.

Nacho: But my impression after four months in the job is that this is a phenomenal company with a fantastic business model, very solid business fundamentals, with opportunities that started to develop back at the beginning of 2023 and that we continue enjoying. And I think that the results that we are seeing in this quarter and in this half are a testament to that. I mean, all the financial syndicators are improving and are showing the right direction. I mean, profit, and EBITDA. We know we have to work on free cash flow, and we are working on that. But everything else is really moving well. And most importantly for me, I think when I see this 9% growth in biopharma, that's a phenomenal springboard to continue generating efficiencies and increasing our EBITDA portfolio. So how do you convince investors? I think that this is a loaded question.

Speaker Change: But, you know, my impression after four months in the job is that this is a phenomenal company with a fantastic business model, very solid, very solid business fundamentals.

Dani: With opportunities, opportunities that started to develop back in the beginning of 2023, and that we continue enjoying. And I think the results that we are seeing in this quarter and in this half,

Dani: I think are a testament of that. I mean, all financial syndicators are improving, are showing the right direction. I mean, Profit, EBITDA.

Dani: We know we have to work on free cash flow and we are working on that.

Nacho Abia: Everything else is really moving well. Most importantly, for me, I think when I see this 9% growth in Biopharma, that's a phenomenal, you know, springboard to continue generating efficiencies and increasing our EBITDA portfolio. How to convince investors, I think that this is a loaded question. I think that the way to convince the investor is to continue delivering. I mean, delivering on our promises, making sure that we have reasonable targets and guidance, and we deliver on them without surprises, and making sure that we operate in a way that our business is well understood by all the stakeholders. I think that's the plan, and that's what we are planning to do moving forward.

Nacho: And most importantly for me, I think when I see this 9% growth in biopharma, that's a phenomenal springboard to continue generating efficiencies and increasing our EBITDA portfolio. So how do you convince investors? I think that this is a loaded question.

Dani: But everything else is really moving well, and most importantly, for me, I think when I see this 9% growth in biopharma...

Dani: That's a phenomenal springboard to continue generating efficiencies and increasing our EBITDA portfolio.

Dani: How to convince investors? I think that this is a loaded question. I think that the way to convince the investor is to continue delivering. I mean, delivering on our promises, making sure that we have a reasonable

Nacho Abia: I think that the way to convince investors is to continue delivering. I mean, delivering on our promises, making sure that we have reasonable targets and guidance and we deliver on them without surprises, and making sure that we operate in a way that our business is well understood by all the stakeholders. I think that's the plan and that's what we are planning to do moving forward. Charles, on the second one, maybe I'm going to ask you to elaborate a little bit more. As per the balance sheet, I mean, there are no significant changes. If you are more looking at our assets, you will see $2 billion in part of our cash line. This is, you know, the $1.6 billion already includes the $1.6 billion that we got from the Shanghai Rust transaction, as explained. The announcement was made in mid-June, and the closing, including the funds, was by the end of the second quarter. If you are looking more at the liabilities, you will see that the current financial liabilities increased because we are going to repay, actually, we already did $1.1 billion from the TLB. That's why it was reclassified as current, and so thank you,

Dani: All these are all reasonable targets and guidance and we deliver on them without surprises and making sure that we operate in a way that our business is well understood by all the stakeholders. I think that's the plan and that's what we are planning to do moving forward.

Danny Segarra: Charles, on the second one, maybe I'm gonna ask you to elaborate a little bit more. As per balance sheet, I mean, there are no significant changes. If you look more at our assets, you will see EUR 2 billion, part of our cash line. This is, you know, the EUR 1.6 already includes the EUR 1.6 billion that we got from the Shanghai RAAS transaction, as explained. The announcement was done mid-June, and the closing including, you know, the funds were by the end of Q2. If you look more at the liabilities, you will see that the current financial liabilities increase because we are gonna repay. Actually, we already did EUR 1.1 billion from the TLB. That's why it was reclassified as a current. Understood. Thank you. Good. Thank you so much, Charles.

Daniel Segarra: Charles, on the second one, maybe I'm going to ask you to elaborate a little bit more. As per the balance sheet, I mean, there are no significant changes. If you are more looking at our assets, you will see €2 billion in part of our cash line. This is, you know, the 1.6 already includes the €1.6 billion that we got from the Shanghai RAAS transaction, as explained. The announcement was done mid-June, and the closing, including the funds, was by the end of the second quarter. If you are looking more at the liabilities, you will see that the current financial liabilities increased because we are going to repay--actually, we already did €1.1 billion from the TLB. That's why it was reclassified as current. And so thank you,

Speaker Change: Charles, on the second one, maybe I'm going to ask you to elaborate a little bit more.

Nacho: As per the balance sheet, I mean, there are no significant changes. If you are more looking at our assets, you will see $2 billion in part of our cash line. This is, you know, the $1.6 billion already includes the $1.6 billion that we got from the Shanghai Rust transaction, as explained. The announcement was made in mid-June, and the closing, including the funds, was by the end of the second quarter. If you are looking more at the liabilities, you will see that the current financial liabilities increased because we are going to repay, actually, we already did $1.1 billion from the TLB. That's why it was reclassified as current, and so thank you, Good. Thank you so much, Charles. Now it's turn for Alvaro Lenze, Alantra.

As per the balance sheet, I mean, there are no significant changes. If you are more looking at our assets, you will see $2 billion in part of our cash line. This is, you know, the $1.6 billion already includes the $1.6 billion that we got from the Shanghai Rust transaction, as explained. The announcement was made in mid-June, and the closing, including the funds, was by the end of the second quarter. If you are looking more at the liabilities, you will see that the current financial liabilities increased because we are going to repay, actually, we already did $1.1 billion from the TLB. That's why it was reclassified as current, and so thank you,

Charles Pitman: As the per balance sheet, I mean, there are no significant changes. If you are more looking at our assets, you will see 2 billion part of our cash line. This is, you know, the 1.6 already includes the 1.6 billion.

Charles Pitman: that we got from the Shanghai Rust transaction, as explained.

Charles Pitman: The announcement was done mid-June and the closing including, you know, the funds were by the end of the second quarter. If you are looking more at the liabilities, you will see that the current financial liabilities

Charles Pitman: increase because we are going to repay actually we already did 1.1 billion from the TLB that's why it was reclassified as a current

Charles Pitman-King: Answered. Thank you,

Speaker Change: And so thank you.

Daniel Segarra: Good. Thank you so much, Charles. Now it's turn for Alvaro Lenze, Alantra.

Danny Segarra: Now it's turn for Alvaro Lenze, Alantra.

Speaker Change: Good, thank you so much Charles. Now it's turn for Alvaro Lenze, Alantra.

Alvaro Lenze: Hi, thanks for taking my questions. The first one is, if you could help us reconcile the evolution of net debt during the quarter, I see that your net debt has fallen by €1.5 billion, that's after having received 1.6 from [inaudible]. And you mentioned that you have generated €57 million of free cash flow. There's probably a 100 million shortfall there, so if you could help us understand where--where is that? And the second question is, if you could just give us some indication of what could be potential scenarios for Class B shares. I mean, if you imagine that, in a hypothetical scenario, there were to be a merger of the shares, or a delisting of the shares, or a voting for Class A and Class B shares to receive different prices in a potential takeover bid. How would that work from a governance standpoint? I don't know the voting rights for each share, the number--the minimum voting result that would be needed to make any changes to the current regulation regarding B-shares. Thank you. As Thomas mentioned and I mentioned, I mean, we are not going to make any comment or any speculation on what could happen. I mean, this is definitely not a question for us to answer, and we will not comment further on that. As for your first question on the 100 million that are missing, I think I see Danny raising his hand to answer. Alvaro, I'm going to take this one.

Alvaro Lenze: Hi, thanks for taking my questions. The first one is, if you could help us reconcile the evolution of net debt during the quarter, I see that your net debt has fallen by €1.5 billion, that's after having received 1.6 from [inaudible]. And you mentioned that you have generated €57 million of free cash flow. There's probably a 100 million shortfall there, so if you could help us understand where is that? And the second question is, if you could just give us some indication of what could be potential scenarios for Class B shares. I mean, if you imagine that, in a hypothetical scenario, there were to be a merger of the shares, or a delisting of the shares, or a voting for Class A and Class B shares to receive different prices in a potential takeover bid. How would that work from a governance standpoint? I don't know the voting rights for each share, the number--the minimum voting result that would be needed to make any changes to the current regulation regarding B-shares. Thank you.

Alvaro Lenze: Hi, thanks for taking my questions. The first one is if you could help us reconcile the evolution of net debt during the quarter. I see that your net debt has fallen by EUR 1.5 billion. That's after having received EUR 1.6 billion proceeds from Shanghai RAAS. You mentioned that you have generated EUR 57 million of free cash flow. There's probably EUR 100 million shortfall there. If you could help us understand where that is. The second question is, if you could please just give us some indication of what could be potential scenarios for Class B shares.

Álvaro Lenze: Hi, thanks for taking my questions. The first one is if you could help us reconcile the evolution of net debt during the quarter. I see that your net debt has fallen by EUR 1.5 billion. That's after having received EUR 1.6 billion proceeds from Shanghai RAAS. You mentioned that you have generated EUR 57 million of free cash flow. There's probably EUR 100 million shortfall there. If you could help us understand where that is. The second question is, if you could please just give us some indication of what could be potential scenarios for Class B shares.

Alvaro Lenze Julia: Hi, thanks for taking my questions. The first one is if you could help us reconcile the evolution of net debt during the quarter. I see that your net debt has fallen by $1.5 billion.

Alvaro Lenze Julia: That's after having received 1.6% from Sunlight Labs, and you mentioned that you have generated 57 million of free cash flow. So there's probably 100 million shortfall there, so if you could help us understand where is that. And the second question is if you could...

Alvaro Lenze Julia: And you mentioned that you have generated 57 million of free cash flow. There's probably a 100 million shortfall there, so if you could help us understand where that is, where is that? And the second question is, if you could just give us some indication of what could be potential scenarios for Class B shares. I mean, if you imagine that, in a hypothetical scenario, there were to be a merger of the shares or a delisting of the shares or, or a voting for Class A and Class B shares to receive different prices in a potential takeover bid. How would that work from a governance standpoint?

Alvaro Lenze Julia: And the second question is, if you could just give us some indication of what could be potential scenarios for Class B shares. I mean, if you imagine that, in a hypothetical scenario, there were to be a merger of the shares or a delisting of the shares or, or a voting for Class A and Class B shares to receive different prices in a potential takeover bid. How would that work from a governance standpoint?

Speaker Change: Please give us some indication of what could be...

Alvaro Lenze: I mean, if you imagine that in a hypothetical scenario that there were to be a merger of the shares or a delisting of the shares or a voting for Class A and Class B shares to receive different prices in a potential takeover bid, how would that work from a governance standpoint? I don't know the voting rights for each shares, the number, the minimum voting result that would be needed to make any changes to the current regulation regarding B-shares. Thank you.

Álvaro Lenze: I mean, if you imagine that in a hypothetical scenario that there were to be a merger of the shares or a delisting of the shares or a voting for Class A and Class B shares to receive different prices in a potential takeover bid, how would that work from a governance standpoint? I don't know the voting rights for each shares, the number, the minimum voting result that would be needed to make any changes to the current regulation regarding B-shares. Thank you.

Speaker Change: potential scenarios for class B shares. I mean, imagine that in a hypothetical scenario that

Speaker Change: There were to be a merger of the shares or a delisting of the shares or...

Speaker Change: or a voting for class A and class B shares to receive different prices in a potential takeover bid. How would that work from a governance standpoint? I don't know. The voting rights for each shares, the number, the minimum...

Nacho: I don't know the voting rights for each share, the number, the minimum voting result that would be needed to make any changes to the current regulation regarding B-shares. As Thomas mentioned and I mentioned, I mean, we are not going to make any comment or any speculation on what could happen. I mean, this is definitely not a question for us to answer, and we will not comment further on that. As for your first question on the 100 million that are missing, I think I see Danny raising his hand to answer. Alvaro, I'm going to take this one.

Nacho Abia: As Thomas mentioned and I mentioned, I mean, we are not going to make any comment or any speculation on what could happen. I mean, this is definitely not a question for us to answer, and we will not comment further on that. As for your first question on the 100 million that are missing, I think I see Dani raising his hand to answer. Alvaro, I'm going to take this one. Pretty much as you said, the net debt has declined by close to $1.6 billion. This is pretty much, you know, the net proceeds that we got from the China transaction. It's true that our free cash flow is positive by $57 million, which is important, you know, compared to what we reported in the first quarter. But then, you know, it's not that big of a amount when you're considering other kinds of adjustments, like exchange rates impacts, some of them non-cash, you know, that are bringing, you know, any difference between the free cash flow generation for a specific quarter and how the But if you want, we can elaborate a little bit more, we can bring in a little more details, but this is pretty much the answer. Okay, if I may squeeze one in exchange for the last research.

Speaker Change: voting result that would be needed to make any changes to the to the current

Speaker Change: to the current regulation regarding B-Shares. Thank you.

Danny Segarra: Thomas mentioned, and I mentioned, I mean, we are not going to make any comment or any speculation on what could happen. I mean, this is definitely not a question for us to answer. We will not comment further on that. As to your first question on the EUR 100 million that are missing, I think I see Danny raising hand to answer. Alvaro, I am gonna check this one. Pretty much as you said, I mean, the net debt has declined by close to EUR 1.6 billion. This is pretty much, you know, the net proceeds that we got from the China transaction. It's true that our free cash flow is positive by EUR 57 million, which is important, you know, compared to what we reported in Q1.

Speaker Change: As Thomas mentioned and I mentioned, I mean, we are not going to make any comment or any speculation on what could happen. I mean, this is definitely not a question for us to answer.

Speaker Change: and we will not comment further on that. For your first question on the 100 million that are missing, I think I see Danny raising his hand to answer.

Daniel Segarra: Alvaro, I'm going to take this one. Pretty much as you said, the net debt has declined by close to €1.6 billion. This is pretty much, you know, the net proceeds that we got from the China transaction. It's true that our free cash flow is positive by €57 million, which is important, you know, compared to what we reported in the first quarter. But then, you know, it's not that big of a amount when you're considering other kinds of adjustments, like exchange rates impacts, some of them non-cash, you know, that are bringing, you know, any difference between the free cash flow generation for a specific quarter and how the net debt changed, in this case, Q1--Q2 versus Q1. But if you want, we can elaborate a little bit more, we can bring in a little more details, but this is pretty much the answer. Okay, if I may squeeze one in exchange for the last research.

Daniel Segarra: Alvaro, I'm going to take this one. Pretty much as you said, the net debt has declined by close to €1.6 billion. This is pretty much, you know, the net proceeds that we got from the China transaction. It's true that our free cash flow is positive by €57 million, which is important compared to what we reported in the first quarter. But then, you know, it's not that big of a amount when you're considering other kinds of adjustments, like exchange rates impacts, some of them non-cash that are bringing any difference between the free cash flow generation for a specific quarter and how the net debt changed, in this case, Q1--Q2 versus Q1. But if you want, we can elaborate a little bit more, we can bring in a little more details, but this is pretty much the answer.

Danny: Pretty much as you said, the net debt has declined by close to $1.6 billion. This is pretty much, you know, the net proceeds that we got from the China transaction. It's true that our free cash flow is positive by $57 million, which is important, you know, compared to what we reported in the first quarter. But then, you know, it's not that big of a amount when you're considering other kinds of adjustments, like exchange rates impacts, some of them non-cash, you know, that are bringing, you know, any difference between the free cash flow generation for a specific quarter and how the But if you want, we can elaborate a little bit more, we can bring in a little more details, but this is pretty much the answer. Okay, if I may squeeze one in exchange for the last research.

Danny: Alvaro, I am going to check this one. Pretty much as you said, I mean, the NetDev has...

Danny: decline by close to 1.6 billion. This is pretty much...

Speaker Change: You know, the net proceeds that we got from the China transaction. It's true that our free cash flow is positive by 57 million, which is important, you know, compared to what we reported in the first quarter.

Danny Segarra: You know, it's not that a big amount, you know, when you're considering other kind of like adjustments, like exchange rates impacts, some of them non-cash, you know, that is bringing, you know, any difference between the free cash flow generation for a specific quarter and how the net debt change, you know. Again, in this case, Q1, Q2 versus Q1. If you want, we can elaborate a little bit more. We can bring a little more details, but this is pretty much the answer.

Speaker Change: But then, you know, it's not that a big amount, you know, when you're considering other kind of like adjustments like exchange.

Speaker Change: Rates, Impacts, some of them non-cash.

Speaker Change: you know, that is bringing, you know, any difference between the free cash flow generation for a specific quarter and how the net debt change.

Speaker Change: You know, again, in this case, Q1, Q2 versus Q1. But if you want, we can elaborate a little bit more. We can bring a little more details. But this is pretty much the answer.

Alvaro Lenze: Okay, if I may squeeze one in exchange for the last B-shares. When I look at your short term liabilities--on the short term financial liabilities, I see €2.7 billion. I assume that you have reclassified some of the debt that you're going to cancel as short term. But if I were to take €1.6 billion out of that, you'd still have €1.1 billion in short-term maturities. Is that right? And if so, are you comfortable with your current liquidity position and cash flow generation profile to meet that €1.1 billion in short-term maturity? Thank you.

Alvaro Lenze Julia: When I look at your short term liabilities on the short term financial liabilities, I see $2.7 billion. I assume that you have reclassified some of the debt that you're going to cancel as short term. But if I were to take $1.6 billion out of that, you'd still have $1.1 billion in short-term maturities. Is that right? And if so, are you comfortable with your current liquidity position and cash flow generation profile to meet that $1.1 billion in short-term maturity?

Alvaro Lenze: Okay, if I may squeeze one in exchange for the Class B shares. I, when I look at your short-term liabilities on the short-term financial liabilities, I see EUR 2.7 billion. I assume that you have reclassified some of the debt that you're going to cancel as short-term. If I were to take out EUR 1.6 billion out of that, do you still have EUR 1.1 billion in short-term maturities? Is that right? If so, are you comfortable with your current liquidity position and cash flow generation profile to meet that EUR 1.1 billion in short-term maturities? Thank you.

Álvaro Lenze: Okay, if I may squeeze one in exchange for the Class B shares. I, when I look at your short-term liabilities on the short-term financial liabilities, I see EUR 2.7 billion. I assume that you have reclassified some of the debt that you're going to cancel as short-term. If I were to take out EUR 1.6 billion out of that, do you still have EUR 1.1 billion in short-term maturities? Is that right? If so, are you comfortable with your current liquidity position and cash flow generation profile to meet that EUR 1.1 billion in short-term maturities? Thank you.

Speaker Change: Okay, if I may squeeze one in exchange for the Class B shares. When I look at your short-term financial liabilities, I see $2.7 billion. I assume that you have reclassified.

Speaker Change: Some of them that you're going to cancel a short term, but if I were to take out 1.6 billion out of that, you'd still have 1.1 billion in short term maturities. Is that right? And if so,

Speaker Change: Are you comfortable with your current liquidity position and cash flow generation profile to meet that $1.1 billion in short-term maturities? Thank you.

Daniel Segarra: Yes, as I was saying, you know, with the question from Charles, this increase is because we reclassify the €1.1 billion that we repaid. Actually, it was last week, early this July, but after the second quarter, you know, and for accounting--I mean, following accounting principles, we got to reclassify it as a current liability. That's pretty much the main reason why it has increased. The €1.6 billion, which you can see, you know, taking the picture then of the second quarter, is more on our cash and cash equivalents. And as we said, we are going to repay that on a [inaudible] basis, 1.1 TLB, as I said, and the remaining kind of like €500 million is something that we are going to repay next week.

Danny Segarra: Yes, as I was saying, you know, with the question from Charles, you know, this increase is because we reclassify the EUR 1.1 billion that we are repaid. Actually, it was last week, early this July, but after Q2, you know. For accounting, I mean following accounting principles, we got to reclassify as a current liability. That's pretty much the main reason why it has increased. The EUR 1.6 billion, which you can see, you know, taking the picture then of Q2, is more on our cash and cash equivalents. As we said, we are gonna repay that on a pro rata basis, 1.1 TLB, as said. The remaining kind of like EUR 500 million is something that we are gonna repay next week.

Speaker Change: Yes, as I was saying, you know, with the question from Charles...

Speaker Change: You know, this increase is because we reclassify the $1.1 billion that we are...

Speaker Change: Rebate, actually it was last week, early this July , but after the second quarter.

Speaker Change: And following accounting principles, we've got to reclassify as a current liability. That's pretty much the main reason why it has increased. The $1.6 billion, which you can see, taking the picture then of the second quarter, is more on our cash and cash equivalents.

Danny: And as we said, we are going to repay that on a parata basis, $1.1 TLB, as I said, and the remaining kind of like $500 million is something that we are going to repay next week. Thank you. Now, if I'm getting it correctly, this is time for Morgan Stanley. Thibault, please.

And as we said, we are going to repay that on a parata basis, $1.1 TLB, as I said, and the remaining kind of like $500 million is something that we are going to repay next week.

Speaker Change: And as we said, we are going to repay them on a Parata basis, 1.1 TLB, as I said. And the remaining kind of like 500 million is something that we are going to repay next week.

Alvaro Lenze: Thank you.

Álvaro Lenze: Thank you.

Danny Segarra: Now, if I'm getting correctly, this is time for Morgan Stanley. Thibault, please.

Thank you. Now, if I'm getting it correctly, this is time for Morgan Stanley. Thibault, please.

Alvaro Lenze: Thank you.

Speaker Change: Thank you.

Daniel Segarra: Now, if I'm getting it correctly, this is time for Morgan Stanley. Thibault, please.

Chivo: Now, if I'm getting correctly, this is time for Morgan Stanley . Thibault, please.

Unknown: Yes, thank you very much. My first question is about the immunotech facilities that you are acquiring. I think the agreement indicates acquisitions of centers in April and July '24. So are these centers already operating today, contributing to your plasma supply? What is the kind of stage of development of these centers? And then the second question is just on the phasing of free cash flow for the remaining of the year on one of your slides. In Q1, you suggested a progressive improvement in free class regeneration in Q3 than in Q4, with Q4 being the strongest quarter. Is this still how you see the rest of the year playing out, or could the pattern be a bit different?

Thibault: Yes, thank you very much. My first question is on the ImmunoTek facilities that you are acquiring. I think the agreement indicates acquisitions of centers in April and July 2024. Are these centers already operating today, contributing to your plasma supply? What is the kind of stage of ramp-up of these centers? The second question is just on the phasing of free cash flow for the remaining of the year. In one of your slides in Q1, you suggested a progressive improvement in free cash flow generation in Q3 then in Q4, with Q4 being the strongest quarter. Is this still how you see the rest of the year playing out, or could the pattern be a bit different?

[Analyst] (Morgan Stanley): Yes, thank you very much. My first question is on the ImmunoTek facilities that you are acquiring. I think the agreement indicates acquisitions of centers in April and July 2024. Are these centers already operating today, contributing to your plasma supply? What is the kind of stage of ramp-up of these centers? The second question is just on the phasing of free cash flow for the remaining of the year. In one of your slides in Q1, you suggested a progressive improvement in free cash flow generation in Q3 then in Q4, with Q4 being the strongest quarter. Is this still how you see the rest of the year playing out, or could the pattern be a bit different?

Thibault: Yes, thank you very much. My first question is on the Immunotech facilities that you are acquiring. I think the agreement indicates acquisitions of centers in April .

Thibault: And July 24th, so are these centers already operating today, contributing to your plasma supply?

Thibault: What is the kind of stage of hump up of this center? And then the second question is just on the phasing of free cash flow for the remaining of the year. In one of your slides.

Thibault Boutherin: And then the second question is just on the phasing of free cash flow for the remaining of the year on one of your slides. In Q1, you suggested a progressive improvement in free class regeneration in Q3 than in Q4, with Q4 being the strongest quarter. Is this still how you see the rest of the year playing out, or could the pattern be a bit different? On the immunity question, the answer is yes.

And then the second question is just on the phasing of free cash flow for the remaining of the year on one of your slides. In Q1, you suggested a progressive improvement in free class regeneration in Q3 than in Q4, with Q4 being the strongest quarter. Is this still how you see the rest of the year playing out, or could the pattern be a bit different?

Speaker Change: In Q1, you suggested a progressive improvement with regard to regeneration in Q3 than in Q4, with Q4 being the strongest quarter. Is this still how you see the rest of the year playing out, or could the pattern be a bit different?

Nacho Abia: On the immunity question, the answer is yes. I mean, some of the centers are already producing, and it's already part of our plasma collection plan. So it's producing as planned and as expected. On the free cast flow, something that--still, I mean, we have generated €59 million this quarter, but we started the first quarter with a minus 250, so we still have 200 million negative that we have to overcome. And we are working on that. Plus, as I mentioned before, now is the time of the year when we're going to have to increase a little bit our inventory levels in order to prepare and build up inventories for 2025. So, that's as well why we keep committing with a positive cash flow at this point because we still have work to do in order to fix the year. So, thank you.

Nacho Abia: On the ImmunoTek question, the answer is yes. I mean, some of the centers are already producing, and it's already part of our plasma collection plan, so it's producing as planned and as expected. On the free cash flow, I think that still, I mean, we have generated EUR 59 million this quarter, but we started the first quarter with EUR -250 million, so we still have EUR -200 million that we have to overcome, and we are working on that. Plus, as I mentioned before, now is the time of the year, we're gonna have to increase a little bit our inventory levels in order to prepare and build up inventories for 2025.

Nacho: I mean, some of the sensors are already producing, and it's already part of our plasma collection plan. So it's producing as planned and as expected. On the free cast flow, something that's still, I mean, we have generated 59 million this quarter, but we started the first quarter with a minus 250. So we still have 200 million negative that we have to overcome. And we are working on that. Plus, as I mentioned before, now is the time of the year when we're going to have to increase our inventory levels a little bit in order to prepare and build up inventories for 2025. So that's as well why we keep committing to a positive cash flow at this point because we still have work to do in order to fix the year.

Speaker Change: On the immunity question, the answer is yes. I mean, some of the sensors are already producing and it's already part of our plasma collection plan, so it's producing as planned and as expected. On the free cast flow...

Speaker Change: I think that still, I mean, we have generated 59 million this quarter, but we started the first quarter with a minus 250, so we still have 200 million negative that we have to overcome and we are working on that.

Nacho: And we are working on that. Plus, as I mentioned before, now is the time of the year when we're going to have to increase our inventory levels a little bit in order to prepare and build up inventories for 2025. So that's as well why we keep committing to a positive cash flow at this point because we still have work to do in order to fix the year. So, Thank you. Thank you so much, Thibault. Jaime from Santander, please could you share your question? My good afternoon.

And we are working on that. Plus, as I mentioned before, now is the time of the year when we're going to have to increase our inventory levels a little bit in order to prepare and build up inventories for 2025. So that's as well why we keep committing to a positive cash flow at this point because we still have work to do in order to fix the year.

Speaker Change: Plus, as I mentioned before, now is the time of the year where we're going to have to increase a little bit our inventory levels in order to prepare.

Nacho Abia: That's as well why we keep committing with a positive cash flow at this point, because we still have work to do in order to fix the year, so. Thank you.

Speaker Change: and BuildUp Inventories for 2025.

Speaker Change: That's as well why we keep committing with a positive cash flow at this point because we still have work to do in order to fix the year.

Charles Pitman-King: Thank you.

Danny Segarra: Thank you so much, Thibault. Jaime from Santander, please, you can share your question.

Speaker Change: Thank you.

So, Thank you. Thank you so much, Thibault. Jaime from Santander, please could you share your question? My good afternoon.

Daniel Segarra: Thank you so much, Thibault. Jaime from Santander, please, you can share your question.

Speaker Change: Thank you so much, Thibault.

Speaker Change: Jaime from Santander, please, you can share your question.

Unknown: My good afternoon. So a couple of questions from my side. The first one is to try to reconcile your guidance of $1.8 billion for the full year. So if the gross margin you mentioned is going to recover to the levels of Q1, so close to 40, let's assume 40%. In order to get to $1.8 billion. Does it not make sense that you have to grow the sale significantly, or is it... So we have three moving parts, right? The top line, the gross margin, and the... So in order to get to this 1.8 billion, if the gross margin does not go up to 42, 44%, this means that you are going to need this guidance because of much more troubling growth. And if that is the case, maybe you can elaborate on what you are seeing, what is the disability you have in the second half. So that you are so confident in this robust top line. I'm sorry, because it's a little bit elaborate, but it's just one question. And then the second question is regarding the You mentioned that there was also a possibility to sell plasma to third parties if needed in order to boost the free cash flow a little bit. Is that still on the table? Do you think you will end up needing to do it in the second half, or do you think you don't need to do it? Thank you very much.

Unknown: Hi, good afternoon. So a couple of questions from my side. The first one is to try to reconcile your guidance of €1.8 billion for the full year. So if the gross margin you mentioned is going to recover to the levels of Q1, so close to 40--let's assume 40%. In order to get to €1.8 billion, does it not make sense that you have to grow the sale significantly, or is it--so we have three moving parts, right? The top line, the gross margin, and the opex. So in order to get to this 1.8 billion, if the gross margin does not go up to 42%-44%, this means that you are going to need this guidance because of much more troubling growth. And if that is the case, maybe you can elaborate on what you are seeing, what is the disability you have in the second half. So, that you are so confident in this robust top line. I'm sorry, because it's [inaudible] elaborate, but it's just one question.

Jaime Escribano: So a couple of questions from my side. The first one is to try to reconcile your guidance of $1.8 billion for the full year. So if the gross margin you mentioned is going to recover to the levels of Q1, so close to 40, let's assume 40%. In order to get to $1.8 billion. Does it not make sense that you have to grow the sale significantly, or is it... So we have three moving parts, right? The top line, the gross margin, and the... So in order to get to this 1.8 billion, if the gross margin does not go up to 42, 44%, this means that you are going to need this guidance because of much more troubling growth. And if that is the case, maybe you can elaborate on what you are seeing, what is the disability you have in the second half. So that you are so confident in this robust top line. I'm sorry, because it's a little bit elaborate, but it's just one question. And then the second question is regarding the You mentioned that there was also a possibility to sell plasma to third parties if needed in order to boost the free cash flow a little bit. Is that still on the table? Do you think you will end up needing to do it in the second half, or do you think you don't need to do it? Thank you very much.

Jaime Escribano: Hi, good afternoon. A couple of questions from my side. The first one is to try to reconcile your guidance of EUR 1.8 billion for the full year. If the gross margin you mentioned is going to recover to levels as of Q1, close to 40%, let's assume 40%. In order to get to the EUR 1.8 billion, does it not make sense that you have to grow the sales significantly? Or is it, we have three moving parts, right? The top line, the gross margin, and the OpEx.

Jaime: Hi, good afternoon. So a couple of questions from my side. The first one is to try to reconcile your guidance of $1.8 billion for the full year.

Jaime: So, if the growth margin you mentioned is going to recover to the results of Q1, so close to 40, let's assume 40%,

Speaker Change: In order to get to the $1.8 billion, does it not make sense that you have to grow the sale significantly? So we have three moving parts, the top line, the gross margin, and the OPEX.

Jaime Escribano: The top line, the gross margin, and the... So in order to get to this 1.8 billion, if the gross margin does not go up to 42, 44%, this means that you are going to need this guidance because of much more troubling growth. And if that is the case, maybe you can elaborate on what you are seeing, what is the disability you have in the second half. So that you are so confident in this robust top line. I'm sorry, because it's a little bit elaborate, but it's just one question. And then the second question is regarding the You mentioned that there was also a possibility to sell plasma to third parties if needed in order to boost the free cash flow a little bit. Is that still on the table? Do you think you will end up needing to do it in the second half, or do you think you don't need to do it? Thank you very much.

Jaime Escribano: In order to get to this EUR 1.8 billion, if the gross margin does not go up to 40% to 44%, this means that you are going to meet this guidance because of much more top-line growth. If this is the case, maybe you can elaborate on what you are seeing, what is the visibility you have in the H2, so that you are so confident in this robust top-line item. Sorry, this is like a little bit elaborated, but it's just one question.

Speaker Change: So, in order to get to this $1.8 billion, if the gross margin does not go up to 42-44%, this means that you are going to need this guidance because of...

Speaker Change: much more top-line groups and if this is the case maybe you can elaborate on what is what you are seeing, what is the disability you have in the second half.

Jaime Escribano: So that you are so confident in this robust top line. I'm sorry, because it's a little bit elaborate, but it's just one question. And then the second question is regarding the You mentioned that there was also a possibility to sell plasma to third parties if needed in order to boost the free cash flow a little bit. Is that still on the table? Do you think you will end up needing to do it in the second half, or do you think you don't need to do it? Thank you very much.

Speaker Change: So that we are so confident in this robust top line.

Unknown: And then the second question is regarding the--you mentioned that there was also a possibility to sell plasma to third parties if needed in order to boost the free cash flow a little bit. Is that still on the table? Do you think you will end up needing to do it in the second half, or do you think you don't need to do it? Thank you very much.

Speaker Change: Sorry, this is like a little elaborated, but it's just one question. And then the second question is...

Jaime Escribano: The second question is regarding the one you mentioned that there was also a possibility to sell plasma to third parties, if needed, in order to boost a little bit the free cash flow. Is it still on the table? Do you think you will end up need to do it in the H2 or you think you don't need to do it? Thank you very much.

Speaker Change: Regarding the, you mentioned that there was also a possibility to

Speaker Change: to sell plasma to third parties if needed in order to boost a little bit the free cash flow. You're still on the table. Do you think you will end up need to do it in the second half or you think you don't need to do it? Thank you very much.

Nacho Abia: Thank you. I mean, on the second question is a quick no that no, that's not on the table. We will continue our regular operations that we have initiated in order to work on the free cash flow. On the first one, let me give you a little bit more color because probably I understand the question, but the accruals that we have taken in order to prevent some potential inventory issues would have impacted our gross margin in about 250 basis points. If you add this 250 basis points to our gross margin of the year, then the number is even higher than the Q1.

Nacho: Thank you very much. Thank you. On the second question, a quick no, that no, that's not on the table, and we will continue our regular operations that we have initiated in order to work on the free cash flow. On the first one, let me give you a little bit more color because I probably understand the question, but the accruals that we have taken in order to prevent some potential inventory issues would have impacted our gross margin by about 250 basic points.

Thank you very much.

Nacho Abia: Thank you. On the second question, a quick no, that's not on the table, and we will continue our regular operations that we have initiated in order to work on the free cash flow. On the first one, let me give you a little bit more color, because probably--I understand the question, but the accruals that we have taken in order to prevent some potential inventory issues would have impacted our gross margin by about 250 basic points. So, if you add these 250 basic points to our gross margin for the year, then the number is even higher than Q1, and the next quarters are progressively going to be even better, again, because of the cost of plasma supply is going to be positively impacted, in the second half, we expect to have a product mix that will favor higher margins, and on top of that, yes, higher sales as well in the second half and in the first half. So when you put that out in combination at the end, we are confident to will achieve the margins expected in the second half of the fiscal year.

Speaker Change: Thank you. On the second question is a quick no, that's not on the table.

Speaker Change: And we will continue our regular operations that we have initiated in order to work on the free cash flow. On the first one, let me give you a little bit more color because probably I understand the question.

Speaker Change: But the accruals that we have taken in order to prevent some potential inventory issues would have impacted our gross margin in about 250 basic points.

Nacho: So if you add these 250 basic points to our gross margin for the year, then the number is even higher than Q1, and the next quarters are progressively going to be even better, again, because of the cost of plasma. The supply is going to be positively impacted, and in the second half, we expect to have a product mix that will favor higher margins, and on top of that, yes, higher sales as well in the second half and in the first So when you put that all together at the end, we are confident that we will achieve the margins expected in the second half of the fiscal year. Thank you very much. Thank you, Jaime. Now we would like to get some questions from Graham. Graham, from Bank of America, please, if you could just give me a specific guide there.

So if you add these 250 basic points to our gross margin for the year, then the number is even higher than Q1, and the next quarters are progressively going to be even better, again, because of the cost of plasma. The supply is going to be positively impacted, and in the second half, we expect to have a product mix that will favor higher margins, and on top of that, yes, higher sales as well in the second half and in the first So when you put that all together at the end, we are confident that we will achieve the margins expected in the second half of the fiscal year.

Speaker Change: So, if you add these 250 basic points to our gross margin of the year...

Nacho Abia: The next quarters are progressively gonna be even better, again, because the cost of plasma, the supplies, is gonna be positively impacted. H2, we expect to have a product mix that will favor higher margins, and on top of that, yes, higher sales as well in H2 than in H1. When you put that in combination at the end, we are confident that to achieve the margins expected in H2 of the fiscal year.

Speaker Change: Then, the number is even higher than the Q1, and the next quarters are progressively going to be even better, again, because of the cost of plasma.

Speaker Change: is the supplies is going to be positively impacted.

Speaker Change: is the second half. We expect to have a product mix that will favor higher margins.

Speaker Change: And on top of that, yes, higher sales as well in the second half and in the first half. So when you put that out in combination, at the end, we are confident that to achieve the margins expected in the second half of the fiscal year.

Jaime Escribano: Thank you.

Thank you very much. Thank you, Jaime. Now we would like to get some questions from Graham. Graham, from Bank of America, please, if you could just give me a specific guide there.

Unknown: Thank you very much.

Danny Segarra: Thank you.

Jaime Escribano: Okay. Thank you very much, Nacho.

Daniel Segarra: Thank you, Jaime. Now we would like to get some questions from Graham. Graham, from Bank of America, please. if you could just give me a specific guide there.

Daniel Segarra: Thank you, Jaime. Now we would like to get some questions from Graham. Graham, from Bank of America, please.

Danny Segarra: Thank you, Nacho. Thank you, Jaime. Now we would like to get questions from Graham. Graham from Bank of America, please.

Speaker Change: Thank you.

Speaker Change: Thank you, Nacho. Thank you, Jaime.

Unknown: Thanks for taking my questions. Just going back to the [inaudible] expense, so if you could just give me a specific guide there. So, I think you previously said you expected a fall in financial expense from €574 million last year. If we use Q1 as the guide for the quarterly run rate in Q3, Q4, that would imply more like 650 to 660 for the year. So, just to be clear, you now expect an increase in financial expense year-on-year in 2024? And the other clarification point is just on inventory. You said, sorry, just then the 250 basis point margin impact. Just to be clear, that was for Q2 specifically, not for the full year, you mentioned both. And then the second question is on CIDP market dynamics. So, we've now got VYVGART approved. Just your thoughts on the latest market intelligence on the positioning of your asset, any kind of impact on your CIDP/IG franchise? Thank you.

Speaker Change #100: Now we would like to get questions from Graham. Graham, from Bank of America, please.

Graham Glyn Charles Parry: So, I think you previously said you expected a fall in financial expense from £574 million last year. If we use Q1 as the guide for the quarterly run rate in Q3, Q4, that would imply more like £650 to £660 for the year. So, just to be clear, you now expect an increase in financial expense year-on-year in 2024. And the other clarification point is just on inventory. You said, sorry, just then the £250 basis point margin impact. Just to be clear, that was for Q2 specifically, not for the whole year. You mentioned both. And then the second question is on CIDP market dynamics. So, we've now got Vivgart approved. Just your thoughts on the latest market intelligence on the positioning of our asset, any kind of impact on your CIDP IG franchise?

Graham: Thanks for taking my questions. I wonder if you just give a specific guide there. I think you'd previously said you expected a fall in financial expense from the EUR 574 million last year. If we use the Q1 as the guide for the quarterly run rate in Q3, Q4, that would imply more like EUR 650 to 660 million for the year. Just to be clear, you don't expect an increase in financial expense year on year in 2024. The other clarification point is just on sort of the inventory. You said, sorry, just then the 250 basis point margin impact. But just to clarify, that was for Q2 specifically, not for the full year, because you mentioned both.

Graham Parry: Thanks for taking my questions. I wonder if you just give a specific guide there. I think you'd previously said you expected a fall in financial expense from the EUR 574 million last year. If we use the Q1 as the guide for the quarterly run rate in Q3, Q4, that would imply more like EUR 650 to 660 million for the year. Just to be clear, you don't expect an increase in financial expense year on year in 2024. The other clarification point is just on sort of the inventory. You said, sorry, just then the 250 basis point margin impact. But just to clarify, that was for Q2 specifically, not for the full year, because you mentioned both.

Graham: Thanks for taking my questions. So, just going back to the financial expense, so I wonder if you could just give a specific guide there. So, I think you previously said you expected a fall in financial expense from the $574 million last year. If we use the Q1 as the guide for the quarterly run rate in Q3, Q4, that would imply more like $650 to $660 for the year. So, just to be clear, you now expect an increase in financial expense year-on-year in 2024. And the other clarification point is just on the inventory, you said, sorry, just then the 250 basis point margin impact, just to clear, that was for Q2 specifically, not for the full year, you mentioned both. And then second question is...

Graham Glyn Charles Parry: You said, sorry, just then the £250 basis point margin impact. Just to be clear, that was for Q2 specifically, not for the whole year. You mentioned both. And then the second question is on CIDP market dynamics. So, we've now got Vivgart approved. Just your thoughts on the latest market intelligence on the positioning of our asset, any kind of impact on your CIDP IG franchise?

Graham: Second question is on CIDP market dynamics, so we've now got VYVGART approved. Just your thoughts on the latest market intelligence on positioning of that asset, any kind of impact on your CIDP IG franchise. Thank you.

Graham Parry: Second question is on CIDP market dynamics, so we've now got VYVGART approved. Just your thoughts on the latest market intelligence on positioning of that asset, any kind of impact on your CIDP IG franchise. Thank you.

Speaker Change #102: on CIDP market dynamics, so we've now got Vivgart approved. Just your thoughts on the latest market intelligence on positioning of the asset, any kind of impact on your CIDP IG franchise. Thank you.

Graham Glyn Charles Parry: Just your thoughts on the latest market intelligence on the positioning of our asset, any kind of impact on your CIDP IG franchise? Thank you. Graham, I'm going to take the first two and then, you know, Roland is going to take on the CIDP.

Just your thoughts on the latest market intelligence on the positioning of our asset, any kind of impact on your CIDP IG franchise?

Danny Segarra: Graham, I'm gonna take the first two and then, you know, Roland is gonna take on the CIDP. I mean, no guidance, but trying to bring some clarity, some reference about the financial expenses. I remember that in the first call, we were saying that financial expenses in absolute figures, it's gonna be lower on annualized basis, right? It's true that it's still in Q3 and part of the H2 this year, still there are different pieces that are moving at the very same time. We are repaying, you know, EUR 1.6 billion, but we are not doing at the very same time that we were receiving this EUR 1.6 billion from China that I was mentioning.

Daniel Segarra: Graham, I'm going to take the first two and then, you know, Roland is going to take on the CIDP. I mean, I was providing some sort of, I mean, no guidance but trying to bring some clarity, some reference about the financial expenses. And I remember that on the first call, we were saying that financial expenses in absolute figures were going to be lower on an annualized basis, right? It's true that it's still in Q3, and part of the second half of this year still there are different pieces that are moving at the very same time. We are repaying, you know, €1.6 billion, but we are not doing it at the very same time that we were receiving this €1.6 billion from China that I was mentioning. But when you are putting all the pieces together, you know, you will see, you know, probably more from a P&L perspective in 2025 that the whole financial expenses, you know, as per the P&L, putting any one of the first financial expenses, non-cash item that I was mentioning when I was taking the previous question, is going to be lower. The cost of that is going to be slightly higher, you know, the new debt is obviously more expensive than what it was the old one.

Speaker Change #103: Graham, I'm going to take the first two and then...

Danny: I mean, I was providing some sort of, I mean, no guidance but trying to bring some clarity, some reference about the financial expenses. And I remember that on the first call, we were saying that financial expenses in absolute figures were going to be lower on an annualized basis, right? different pieces that are moving at the very same time. We are repaying, you know, $1.6 billion, but we are not doing it at the very same time that we were receiving this $1.6 billion from China that I was mentioning. But when you are putting all the pieces together, you know, you will probably see, you know, probably more, you know, from a P&L perspective in 2025 that the whole financial expenses, you know, as per the P&L, putting any one of the first financial expenses, the first non-cash item that I was mentioning when I was taking the previous question, are going to be lower. The cost of that is going to be slightly higher. You know, the new debt is obviously more expensive than the old one.

Speaker Change #104: You know, Roland is going to take on the CDB.

Speaker Change #105: I mean, I was providing some sort, I mean, no guidance, but trying to bring some clarity, some reference about the financial expenses.

Speaker Change #106: And I remember that in the first call we were saying that financial expenses in absolute figures it's going to be lower on annualized basis, right? It's true that it's still in Q3 and part of the of the second half of this year still there are...

Danny: We are repaying, you know, $1.6 billion, but we are not doing it at the very same time that we were receiving this $1.6 billion from China that I was mentioning. But when you are putting all the pieces together, you know, you will probably see, you know, probably more, you know, from a P&L perspective in 2025 that the whole financial expenses, you know, as per the P&L, putting any one of the first financial expenses, the first non-cash item that I was mentioning when I was taking the previous question, are going to be lower. The cost of that is going to be slightly higher. You know, the new debt is obviously more expensive than the old one.

Speaker Change #106: different pieces that are moving at the very same time, we are repairing.

Speaker Change #106: You know, 1.6 billion, but we are not doing it at the very same time that we were receiving this 1.6 billion from China that I was mentioning.

Danny Segarra: When you are putting all the pieces together, you know, you will see, you know, probably more, you know, from a P&L perspective in 2025, that the whole financial expenses, you know, as per the P&L, putting any one of the financial expenses, non-cash item that I was mentioning, you know, when I was taking a previous question is gonna be lower. The cost of debt is gonna be slightly higher. You know, the new debt is obviously more expensive than what it was the other one. We expect some decline in terms of the interest rates, but all in all, we should be expecting something lower. That said, I still think that if you're taking Q1 is a good reference, you know, to project for the rest of the year.

Speaker Change #106: But when you're putting all the pieces together, you know, you will see, you know, probably more.

Speaker Change #106: you know from a P&L perspective in 2025 that the whole financial expenses you know as per the P&L putting any one of the first financial expenses non-cash item that I was mentioning

Speaker Change #107: You know, when I was taking a previous question, it's going to be lower. The cost of debt is going to be slightly higher. You know, the new debt is obviously more expensive than what it was the old one. We expect some decline in terms of the interest rates, but all in all, we should be expecting something lower.

Daniel Segarra: We expect some decline in terms of interest rates, but all in all, we shall be expecting something lower. I say that still thinking that if you're taking Q1 as a good reference, you know, to project for the rest of the year. On the gross margin, yeah, 250 is the right way to see the impact of the provisions that Nacho was mentioning. Excluding this impact, you will see a sequential improvement around 50, 60 basis points versus Q1, giving strong evidence that we should keep expecting a lower cost per liter. Let's put it that way, that the lower cost per liter that we were seeing last year, we are going to see a better, positive evolution in Roland, please, on the CIDP. Yeah, on the FCRN approval in the CIDP, Graham, we estimated a limited impact, and this is what we're seeing in the marketplace today. There are really two factors to it. On the one hand, looking at the patient population, as you know, within IG, CIDP is about 20% to 25% of the IG market. There's only a subset of patients that are suitable for FCRN, and within that, we would expect a gradual uptake. But on the other hand, and I would say even more importantly, we are very confident that IG will remain the standard of care for first-line therapy. This is what we hear from patients who comment that IGs are just very suitable for this multifactorial disease, and with the high response rate, proof, and safety, and long-standing experience of Garmin X in this space, we remain confident and, as a matter of fact, are increasing our engagement in

Speaker Change #107: Say that still thinking that if you're taking Q1 is a good reference, you know to project for the rest of the year

Danny Segarra: On the gross margin, yeah, 250 is the right way to see the impact of these provisions that Nacho was mentioning. Excluding this impact, you will see a sequential improvement around 50, 60 basis points versus Q1. You know, giving strong evidence, you know, that we should keep expecting a lower cost per liter. Let's put that way, that the lower cost per liter that we were seeing last year, we are gonna see a better, a positive evolution in terms of the gross margin, you know, throughout the year. Roland, please on the CapEx.

Nacho: On the gross margin, yeah, 250 is the right way to see the impact of these provisions that Nacho was mentioning. Excluding this impact, you will see a sequential improvement around 50, 60 basis points versus Q1.

Speaker Change #108: You know, giving strong evidence, you know, that we should keep expecting a lower cost per litre. Let's put it that way, that the lower cost per litre that we were seeing last year, we are going to see a better, a positive evolution in terms of the gross margin, you know, throughout the year.

Roland Wandeler: Yeah, on the FCRN approval in the CIDP, Graham, we estimated a limited impact, and this is what we're seeing in the marketplace today. There's really two factors to it. On the one hand, looking at the patient population, as you know, within IG, CIDP is about 20% to 25% of the IG market. There's only a subset of patients that are suitable for FCRN, and within that, we would expect a gradual uptake. But on the other hand, and I would say even more importantly, we are very confident that IG will remain the standard of care for first-line therapy. This is what we hear from OLs who comment that IGs are just very suitable for this multifactorial disease, and with the high response rate, proof and safety, and long-standing experience of [inaudible] in this space, we remain confident and, as a matter of fact, are increasing our engagement in the space. But with all the focus on CIDP, I don't want to take away from the fact that beyond that, if we look at immunodeficiency, primary and secondary, that's where we see and are very excited about the growth potential moving forward.

Roland Wandeler: Yeah. On the FcRn approval in CIDP, granted, we estimated a limited impact, and this is what we're seeing in the marketplace today. There's really two factors to it. On one hand, you know, looking at the patient population, as you know, within IG, CIDP is about 20-25% of the IG market. There's only a subset of patients that are suitable for FcRn, and with that, within that, we would expect a gradual uptake. On the other hand, and I would say even more importantly, we are very confident that IG will remain the standard of care for first-line therapy. This is what we hear from KOLs who comment that IGs are just very suitable for this multifactorial disease.

Roland: Roland, please on the CBP

Roland: Yeah, on the on the FCRN approval in CIDP, Graham, we estimated a limited impact and this is what we're seeing in the marketplace today. There's really two factors to it. On one hand, you know, looking at the patient population, as you know, within IG,

Roland Wandeler: On the one hand, looking at the patient population, as you know, within IG, CIDP is about 20% to 25% of the IG market. There's only a subset of patients that are suitable for FCRN, and within that, we would expect a gradual uptake. But on the other hand, and I would say even more importantly, we are very confident that IG will remain the standard of care for first-line therapy. This is what we hear from patients who comment that IGs are just very suitable for this multifactorial disease, and with the high response rate, proof, and safety, and long-standing experience of Garmin X in this space, we remain confident and, as a matter of fact, are increasing our engagement in

Daniel Segarra: There's only a subset of patients that are suitable for FCRN, and within that, we would expect a gradual uptake. But on the other hand, and I would say even more importantly, we are very confident that IG will remain the standard of care for first-line therapy. This is what we hear from patients who comment that IGs are just very suitable for this multifactorial disease, and with the high response rate, proof, and safety, and long-standing experience of Garmin X in this space, we remain confident and, as a matter of fact, are increasing our engagement in But with all the focus on CIDP, I don't want to take away from the fact that beyond that, if we look at immunodeficiency, primary and secondary, that's where we see and are very excited about the growth potential moving forward.

Roland: CIDP is about 20-25% of the IG market. There's only a subset of patients that are suitable for FCRN, and within that we would expect a gradual uptake.

Roland: But on the other hand, and I would say even more importantly, we are very confident that IgE will remain the standard of care for first-line therapy. This is what we hear from OLs who comment that IgEs are just very suitable for this multifactorial disease.

Daniel Segarra: This is what we hear from patients who comment that IGs are just very suitable for this multifactorial disease, and with the high response rate, proof, and safety, and long-standing experience of Garmin X in this space, we remain confident and, as a matter of fact, are increasing our engagement in

Roland Wandeler: With the high response rate, proven safety, and long-standing experience of GAMUNEX in this space, we remain confident, and in matter of fact, are increasing our engagement in this space. With all the focus on CIDP, I don't wanna take away from the fact that, you know, beyond that, if we look at immunodeficiency, primary and secondary, that's where we see and are very excited about the growth potential moving forward.

Roland: And with the high response rate, proof and safety, and long-standing experience of Garmonex in this space, we remain confident and, as a matter of fact, are increasing our engagement in this space.

Roland Wandeler: But with all the focus on CIDP, I don't want to take away from the fact that beyond that, if we look at immunodeficiency, primary and secondary, that's where we see and are very excited about the growth potential moving forward. Thank you. Thank you, Graham. Thank you, Roland. We have two more questions. Please go ahead.

But with all the focus on CIDP, I don't want to take away from the fact that beyond that, if we look at immunodeficiency, primary and secondary, that's where we see and are very excited about the growth potential moving forward.

Roland: But with all the focus on CIDP, I don't want to take away from the fact that, you know, beyond that, if we look at immunodeficiency, primary and secondary, that's where we see and are very excited about the growth potential moving forward.

Danny Segarra: All right. Thank you.

Roland Wandeler: Thank you.

Danny Segarra: Thank you, Graham. Thank you, Roland. We have two more questions. Guilherme, please go ahead.

Thank you. Thank you, Graham. Thank you, Roland. We have two more questions. Please go ahead.

Unknown: Thank you.

Roland: Thank you.

Daniel Segarra: Thank you, Graham. Thank you, Roland. We have two more questions. Guillerme, please go ahead.

Guillerme: Thank you, Graham. Thank you, Roland. We have two more questions. Guilherme?

Unknown: Good afternoon. Thank you for taking my question. So the first one, if you could update us on the situation for hygiene in the U.S. and if you could provide us with some market share evolution over the past quarter. And the second one, just a clarification on an accounting topic. First, the Shanghai RAAS capital gain, the wonderful report that was [inaudible] 250 that was initially alluded to, in the changes in the accounting treatment of the 20% Shanghai RAAS stake sold in H1, versus the treatment that you had in Q1, in the computation of the [inaudible], and what we should consider for the year. Okay, I'm going to take this question. On the Shanghai Rust contribution, I mean, I mean, we reported what the estimated capital gain was back in December 2023.

Guilherme Sampaio: Yes. Good afternoon. Thank you for taking my question. So the first one, if you could update us on the situation of IG in the US, and then if you could provide us some market share evolution over the past quarters. And second one, just a clarification on an accounting topic. First, the Shanghai's capital gain, the one that was reported versus the EUR 250 million that were initially alluded to. In the changes in the accounting treatment of the 20% Shanghai stake sold in H1 versus the treatment that you had in Q1 in the computation of adjusted EBITDA and what we should consider for the year.

Guillerme: Please go ahead.

Guillerme: Yes, well, good afternoon. Thank you for taking my question.

Guillerme: So the first one, if you could update us on the situation of hygiene in the U.S.

Guillerme: And then we provided some market share evolution over the past quarters. And second one, just a clarification on an accounting topic. First, the Shanghai hash capital gain, the wonderful report, especially the 250 million that were initially alluded to.

Unknown Executive: First, the Shanghai hash capital gain, the wonderful report that was initially alluded to, in the changes in the accounting treatment of the 20% Shanghai hash stake sold in H1 versus the treatment that you had in Q1, in the computation of the JSABK, and what we should consider for the, Okay, I'm going to take this question. On the Shanghai Rust contribution, I mean, I mean, we reported what the estimated capital gain was back in December 2023.

Speaker Change #110: And the changes in the accounting treatment of the 20% Sengarash stake sold in H1 versus the treatment that you had in Q1 in the computation of the GSA BTA and what we should consider for the year.

Nacho Abia: Okay, I'm going to take this question. On the Shanghai RAAS contribution, I mean, we reported what the estimated capital gain was back in December 2023. At that point, we ran some estimates, and a number that was provided at the time was compared to the acquisition price, as stated in the filing, right? Then, you know, we did the same kind of numbers, the same kind of process, but on a consolidation basis, considering, you know, how the profits, losses, you know, and exchange rate impact, any accounting impact that we have had since the acquisition back in 2020. And at the end of the day, the capital gain that we included in the second quarter has been lower than initially expected. It was more in the 30 to 40 million range. Okay, and on the--I cannot wrap up on the BTA contribution. This is--I mean, in Q1, we only considered the 6.6 daily contribution from Shanghai RAAS because, at that point, Shanghai RAAS was still considered an asset held for sale. Now, at the end of the second quarter, by the end of June, the asset was sold, so, following accounting rules, we were able to recognize the whole contribution from this asset. On the market share side, Roland, would you like to comment?

Danny Segarra: Okay. I'm gonna take this question. On the Shanghai RAAS contribution, I mean, we reported what was the estimated capital gain back in December of 2023. At that point, we ran some estimation and number that was provided at the time was compared to the acquisition price as stated in the filing, right? We did the same kind of numbers, the same kind of process, but on a consolidation basis, considering how the profits, losses, and exchange rate impact, any accounting impact that we had since the acquisition back in 2020. At the end of the day, the capital gain that we included in Q2 has been lower than initially expected.

Speaker Change #111: Okay, I, um...

Speaker Change #112: I'm going to take this question.

Unknown Executive: At that point, we ran some estimates, and a number that was provided at the time was compared to the acquisition price as stated in the filing, right? Then, you know, we did the same kind of numbers, the same kind of process, but on a consolidation basis, considering, you know, how the profits, losses, you know, and exchange rate impact, you know, any accounting impact that we have had since the acquisition back in 2020. And at the end of the day, the capital gain that we included in the second quarter has been lower than initially expected. It was more in the 30 to 40 million range.

Speaker Change #113: On the Shanghai Rust contribution, I mean, it...

Speaker Change #114: I mean, we reported what was estimated capital gain.

Speaker Change #115: Back in December 2023, at that point we ran some estimation and the number that was provided at that time was compared to the acquisition price as a state.

Speaker Change #114: in the filing, right? Then, you know, we did the same kind of numbers, the same kind of process, but on a consolidation basis, you know, considering, you know, how the...

Speaker Change #114: Profits, losses, you know, and exchange rate impact, you know, any accounting impact.

Speaker Change #114: that we had since the acquisition back in 2020. And at the end of the day, the capital gain that we included in the second quarter, it has been lower than initially expected. It was more in the 30 to 40 million range.

Danny Segarra: It was more in the 30 to 40 million range. Okay, on the... I'm sorry. I cannot wrap up on the EBITDA contribution. This is, I mean, in Q1, I mean, we only consider the EUR 6.6 EBITDA contribution from Shanghai RAAS, because at that point, Shanghai RAAS was still considered as an asset held for sale. Now, at the end of Q2, by the end of June, the asset was sold. Following accounting rules, we were able to recognize the whole contribution from this asset. Okay. Now

Danny: Okay, and on the BTA contribution. This is, I mean, in Q1, we only considered the 6.6 daily contribution from Shanghai RAS because, at that point, Shanghai RAS was still considered an asset held for sale. Now, at the end of the second quarter, by the end of June, the asset was sold, so, following accounting rules, we were able to recognize the whole contribution from this asset.

Speaker Change #116: Okay, and on the...

Speaker Change #117: I can now wrap up on the BTA contribution.

Speaker Change #117: This is, I mean, in Q1, I mean, we only considered the 6.6 everyday contribution from Shanghai Rush because at that point Shanghai Rush was still considered as an asset held for sale.

Speaker Change #117: Now, at the end of the second quarter, by the end of June , the asset was sold. So following accounting rules, we were able to recognize the whole contribution from this asset.

Nacho Abia: On the market share side, Roland, would you like to comment? Of course, you know, without going into the details of market share numbers, you know, what we can say is that we're very encouraged by the momentum that we're seeing in the U.S. You saw the growth numbers of our sub-Q IGE Xembify, which is very encouraging. And, you know, we're also very pleased with the feedback that we get from both healthcare professionals and from patients. And in addition, we also see very strong momentum on the Gamonex side, where we see new accounts coming online. And, as a matter of fact, the growth potential that we see in both Gamonex and Xembify is the reason why we decided to, you know, give distribution of our new IGE in the U.S. EMUGO to a third-party distributor. This setup allows us to maximize the uptake as part of the overall group channel strategy, where the Grifols team will continue to focus on growth for our 10% Gamonex across all indications, CIDP, PID, and ITP, and for our sub-Q Xembify in PID and drive the momentum there, while we have Kedrion, with whom we have a longstanding partnership, focused on establishing EMUGO in

Nacho Abia: On the market share side, Roland, would you like to comment?

Roland Wandeler: On the market share side, Roland, would you like to comment? Of course, you know, without going into the details of market share numbers, you know, what we can say is that we're very encouraged with the momentum that we're seeing in the US. You saw the growth numbers of our sub-Q IG XEMBIFY, which is very encouraging and, you know, we're very pleased also with the feedback that we get from both healthcare professionals and from patients. In addition, we also see very strong momentum on the GAMUNEX side, where we see new accounts coming online. As a matter of fact, the growth potential that we see in both GAMUNEX and XEMBIFY are the reason why we decided to, you know, give distribution of our new IG in the US, Yimmugo, to a third-party distributor.

Speaker Change #117: On the market share side, Roland, would you like to comment?

Roland Wandeler: Of course, you know, without going into the details of market share numbers, what we can say is that we're very encouraged by the momentum that we're seeing in the U.S. You saw the growth numbers of our sub-q IG XEMBIFY, which is very encouraging. And, you know, we're also very pleased with the feedback that we get from both healthcare professionals and from patients. And in addition, we also see very strong momentum on the GAMUNEX side, where we see new accounts coming online. And, as a matter of fact, the growth potential that we see in both GAMUNEX and XEMBIFY are the reason why we decided to, you know, give distribution of our new IGE in the U.S. YIMMUGO to a third-party distributor. This setup allows us to maximize the uptake as part of the overall group channel strategy, where the Grifols team will continue to focus on growth for our 10% GAMUNEX across all indications, CIDP, PID, and ITP, and for our subcu XEMBIFY in PID, and drive the momentum there, while we have Kedrion, with whom we have a longstanding partnership, focused on establishing YIMMUGO in the broader market place, with expected sales of $1 billion over 7 years.

Danny: And in addition, we also see very strong momentum on the Gamonex side, where we see new accounts coming online. And, as a matter of fact, the growth potential that we see in both Gamonex and Xembify is the reason why we decided to, you know, give distribution of our new IGE in the U.S. EMUGO to a third-party distributor. This setup allows us to maximize the uptake as part of the overall group channel strategy, where the Grifols team will continue to focus on growth for our 10% Gamonex across all indications, CIDP, PID, and ITP, and for our sub-Q Xembify in PID and drive the momentum there, while we have Kedrion, with whom we have a longstanding partnership, focused on establishing EMUGO in

Roland: Of course, you know, without going into the details of market share numbers, you know, what we can say is that we're very encouraged with the momentum that we're seeing in the U.S.

Roland: You saw the growth numbers of our sub-Q IHE Exembify, which is very encouraging, and we're very pleased also with the feedback that we get from both healthcare professionals and from patients.

Roland: and in addition we also see very strong momentum on the government side where we see new accounts coming online.

Roland: And as a matter of fact, the growth potential that we see in both Gomonex and Xembify are the reason why we decided to, you know, give distribution of our new IG in the U.S., Emugo, to a third-party distributor. This setup allows us to maximize the uptake as part of the overall group.

Roland Wandeler: This setup allows us to maximize the uptake as part of the overall group channel strategy, where the Grifols team will continue to focus on growth for our 10% Gamonex across all indications, CIDP, PID, and ITP, and for our sub-Q Xembify in PID and drive the momentum there, while we have Kedrion, with whom we have a longstanding partnership, focused on establishing EMUGO in Thank you so much, Roland. Thank you. We're going to take one last question before closing. Alvaro, please.

This setup allows us to maximize the uptake as part of the overall group channel strategy, where the Grifols team will continue to focus on growth for our 10% Gamonex across all indications, CIDP, PID, and ITP, and for our sub-Q Xembify in PID and drive the momentum there, while we have Kedrion, with whom we have a longstanding partnership, focused on establishing EMUGO in

Roland Wandeler: This setup allows us to maximize the uptake as part of the overall group channel strategy, where the Grifols team will continue to focus on growth for our 10% GAMUNEX across all indications, CIDP, PID, and ITP, and of our sub-Q XEMBIFY in PID, and drive the momentum there while we have Kedrion, with whom we had a long-standing partnership, focus on establishing Yimmugo in the broader marketplace with expected sales of $1 billion over 7 years.

Roland: channel strategy where the Grifols team will continue to focus on growth for our 10% GammaNex across

Roland: and drive the momentum there, while we have Cedrion, which...

Roland: with whom we had a long-standing partnership, focus on establishing Imugo in the broader marketplace with expected sales of a billion dollars over seven years.

Daniel Segarra: Thank you so much, Roland. Thank you. We're going to take one last question before closing. Alvaro, please.

Danny Segarra: Okay. Thank you so much, Roland. Thank you. We're gonna take one last question before closing. Alvaro, please.

Speaker Change #118: Okay. Thank you so much, Roland.

Speaker Change #119: Thank you. We are going to take one last question before closing. Alvaro, please.

Alvaro Lenze: Hi, thanks for allowing me to jump back into the queue. And I see that the performance on Albumin has been very strong. I just wanted to know whether this is just better commercial performance on your side, or whether you're seeing more demand for Albumin as a volume expander, or whether you are actually seeing some increased demand for newer therapeutic areas. And in that context, what should we expect, or if you could provide us with any update on the clinical trials that you're conducting for Albumin. And the second question was just clarify what the adjustment to EBITDA you have done for Shanghai RAAS 20% stake, which's not the one regarding the capital gain, that over adjustment of 27 million, what that is, I didn't really get that. Thank you.

Alvaro Lenze: Hi, thanks for allowing me to jump back into the queue. I see that the performance on albumin has been very strong. I just wanted to know whether this is just better commercial performance on your side, or that you're seeing more demand for albumin as a volume expander, or whether you are seeing actually some increased demand for newer therapeutic areas, and in that context, what should we expect? Or if you could provide us any update on the clinical trials you're conducting for albumin. The second question was just to clarify what the adjustment to EBITDA that you have done for Shanghai RAAS's 20% stake, which is not the one regarding the capital gain. That other adjustment of EUR 27 million, what that is, I didn't really get that. Thank you.

Álvaro Lenze: Hi, thanks for allowing me to jump back into the queue. I see that the performance on albumin has been very strong. I just wanted to know whether this is just better commercial performance on your side, or that you're seeing more demand for albumin as a volume expander, or whether you are seeing actually some increased demand for newer therapeutic areas, and in that context, what should we expect? Or if you could provide us any update on the clinical trials you're conducting for albumin. The second question was just to clarify what the adjustment to EBITDA that you have done for Shanghai RAAS's 20% stake, which is not the one regarding the capital gain. That other adjustment of EUR 27 million, what that is, I didn't really get that. Thank you.

Alvaro Lenze Julia: Hi, thanks for allowing me to jump back into the queue. I see that the performance on Albumin has been very strong. I just wanted to know whether this is just better commercial performance on your side or that you're seeing more demand for Albumin as a volume expander.

Alvaro Lenze Julia: or whether you are seeing actually some increased demand for newer therapeutic areas in that context.

Speaker Change #120: What should we expect, or if you could provide us any update on the clinical trials you're conducting for albumins? And the second question was just to clarify what the adjustment to EBITDA that you have done for Shanghai RAS 20% stake, which is not the one...

Speaker Change #121: Regarding the capital gain, that over adjustment of 27 million, what that is, I didn't really get that. Thank you.

Roland Wandeler: Yeah, on albumin, you know, we are encouraged with the momentum and the demand that we see, especially from China, as you know, the highest price market, where Grifols is very well positioned to continue to capitalize on that growth. With the newly signed contract with a ten-year exclusivity plus ten-year option beyond, we see continued growth there. On the body of clinical evidence, you're right, you know, in terms of PRECIOSA, our study on liver cirrhosis enrollment that we completed in 2023 led to the last patient finalizing treatment in May, and we expect top line results during Q4, and we'll be communicating them afterwards.

Nacho Abia: Alvaro, on Albumin, we are encouraged by the momentum and the demand that we see, especially in China, the highest price market where Grifols is very well positioned to continue to capitalize on that growth, and with the newly signed contract with a 10-year--exclusivity plus 10-year option beyond, we see continued growth there, and on the body of clinical evidence, you're right, in terms of PRECIOSA, our study on liver cirrhosis enrollment that we completed in '23 led to the last patient finalizing treatment in May, and we expect topline result there in Q4. And we'll communicate afterwards. I'm going to take, you know, the second part, as I was mentioning before, you can see, you know, a capital gain of 30 to 40 million, and then you will see the contribution, which is close to 30 million, if I'm not wrong, but for further detail... For some specifics, I will refer more to the annexes, and you will see the full reconciliation.

Speaker Change #122: On aluminum, we're encouraged with the momentum and the demand that we see, especially from China, as you know, the highest-priced market where Grifols is very well positioned.

Speaker Change #123: to continue to capitalize on that growth and with the newly signed contract.

Speaker Change #123: with a 10-year exclusivity plus 10-year option beyond.

Speaker Change #124: We see continued growth there. And on the body of clinical evidence, you're right, you know, in terms of Preciosa, our study on liver cirrhosis enrollment that we completed in 2023 led to the last patient finalizing treatment in May, and we expect top-line results there in Q4. We'll be communicating afterwards.

Daniel Segarra: Alvaro, I'm going to take, you know, the second part, as I was mentioning before, you can see a capital gain of 30 to 40 million, and then you will see the contribution, which is close to 30 million, if I'm not wrong, but for further detail--for some specifics, I will refer more to the annexes, and you will see the full reconciliation. Otherwise, we can follow up offline. [inaudible]. So, with that, we arrive at the very end, I thank you very much for joining us today. As I said, if you have any follow-up questions, please feel free to email the IR team. Thank you so much. Thank you all for joining us. Thank you. We appreciate it. Bye bye.

Daniel Segarra: Alvaro, I'm going to take the second part, as I was mentioning before, you can see a capital gain of 30 to 40 million, and then you will see the contribution, which is close to 30 million, if I'm not wrong, but for further detail--for some specifics, I will refer more to the annexes, and you will see the full reconciliation. Otherwise, we can follow up offline. [inaudible]. So, with that, we arrive at the very end. Again, thank you very much for joining us today. As I said, if you have any follow-up questions, please feel free to email the IR team. Thank you so much.

Danny Segarra: I'm gonna take, you know, the second part. As I was mentioning before, you can see, you know, a capital gain of EUR 30 to 40 million, and then you will see the contribution, which is close to EUR 30 million, if I'm not wrong. For a further detail, for some specifics, I will refer more to the annexes, and you will see the full reconciliation. Otherwise, we can follow up offline. Okay? I will bring you all the details. With that, we arrive at the very end. Again, thank you very much for joining us today. As said, if you have any follow-up questions, please feel free to mail the IR team. Thank you so much.

Speaker Change #124: Alvaro, I'm going to take, you know, the second part, as I was mentioning before, you can see, you know, a capital gain of 30 to 40 million, and then you will see the contribution, which is close to 30 million, if I'm not wrong, but for a further detail...

Speaker Change #124: For some specifics, I will refer more to the annexes and you will see the full reconciliation. Otherwise, we can follow up offline.

Otherwise, we can follow up offline. Okay, I will bring you everything. So, again, thank you very much for joining us today. As I said, if you have any follow-up questions, please feel free to email the IR team. Thank you so much. Thank you all for joining us. Thank you. We appreciate it. Bye bye.

Daniel Segarra: Thank you all for joining us. Thank you. We appreciate it. Bye bye.

Thomas Glanzmann: Thank you all for joining us.

Multiple: Thank you. We appreciate it.

Alvaro Lenze Julia: Okay, I will bring you all everything.

Speaker Change #125: So with that we arrive at the very end. Again, thank you very much for joining us today. As I said, if you have any follow-up questions, please feel free to mail them to your team. Thank you so much. Thank you all for joining. Thank you. We appreciate it. Thank you. Bye-bye.

Nacho Abia: Thank you all for joining.

Roland Wandeler: Thank you.

Nacho Abia: We appreciate it. Thank you. Bye-bye.

Q2 2024 Grifols SA Earnings Call

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