Full Year 2024 Grifols SA Earnings Call

February 26, 2025

Investor Relations website at Greif Com.

Moving to slide two I will first I'd 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 under no obligation to update or revise them.

Daniel Segarra: Hello everyone and welcome to Grifo's New Year 2024 Financial Results Conference Call. My name is Daniel Segarra and I am the Head of Investment Relations and Sustainability. Today I am joined by Grifo's Chief Executive Officer, Nat Shabia, Chief Financial Officer, Rahul Srinivasan, and the President of Biopharma, Roland Vandeler.

For the full financial statements are prepared in accordance with EU idea for us and other applicable reporting provisions.

These include alternative performance measures also known as Apm's prepared under the group financial reporting model as defined by the guidelines of the rupee in securities and markets of 30 feet.

Please note that could default management users APM staple related financial performance cash flows and financial position as the basis for it operational and strategic decisions.

These Atms are prepared for all time periods presented in this document.

Speaker Change: On today's call nature will start with some introductory remarks.

Speaker Change: My discussion on business performance and our strategic execution.

Speaker Change: Denver Who'll walk us through the financial results for Q4 and full year 2024.

Speaker Change: 2025 guidance it will be addressed in detail during tomorrow's capital market day.

Speaker Change: After <unk> remarks, we will hand, it back to natural for his closing comments.

Speaker Change: With that thank you very much for joining us today are Joe.

Speaker Change: Over to you.

Thank you Ronnie and good evening, good afternoon, and good morning to all of Europe, ending on where you are in the world.

Speaker Change: I appreciate you joining our full year results call.

Speaker Change: It is my pleasure to share with you the completion of a year marked by meaningful accomplishments, but also notable challenges for our company.

Daniel Segarra: On today's call not sure we'll start with some introductory remarks, followed by a discussion on business performance and strategic execution.

Speaker Change: 224 has not been any sort of year for us we navigated a complex environment that challenge all of us to overcome several obstacles.

Speaker Change: However, we remain focused on executing our strategy upholding the mission ambition of the company and delivery nonperformance.

Speaker Change: Denver Who'll walk us through the financial results for Q4 and full year 2024.

Speaker Change: 2025 guidance it will be addressed in detail during tomorrow's capital market day.

Speaker Change: For the reasons I am, particularly proud on our team's unwavering focus and dedication throughout 2020 for their hard work and commitment enable us to achieve record results, while continuing to drive our strategy forward.

Speaker Change: After a rough quarter for remarks, we will hand, it back to natural for his closing comments.

Natural: With that thank you very much for joining us today.

Speaker Change: Today.

Speaker Change: We will review these achievements the key drivers and financial metrics behind our performance and outline our priorities for achieving sustainable growth in the upcoming years.

Speaker Change: I'll, let to you.

Speaker Change: Thank you Danny and good evening, good afternoon, and good morning to all of you depending on where you are in the world.

Speaker Change: Tomorrow February 27, the company will host its couple of market day in London, where it will be a great opportunity to hear from Greenfields leaderships on the Companys strategy ambition for the future and also about our guidance for 2025.

Speaker Change: I appreciate you joining our full year results call.

It is my pleasure to share with you the completion of a year marked by meaningful accomplishments, but also in other words challenges for our company.

Speaker Change: 24 has not been any sort of year for us we navigated a complex environment. The challenge all of us to overcome several obstacles.

Speaker Change: Turning to slide five as already mentioned.

Speaker Change: 74% of many challenges. Despite this the company continued implementing the strategy the strategy across the organization. This is reflected in our strong business performance reinforced financial position along with changes implemented at the governance level.

Speaker Change: However, we remain focused on executing our strategy upholding the mission ambition of the company and delivery nonperformance, but.

Speaker Change: What are the reasons I am, particularly proud on our team's unwavering focus and dedication throughout 'twenty 'twenty four.

Speaker Change: On a fundamental level of the business, we closed a landmark year by outpacing market growth driven by robust underlying demand and our strong biopharma franchise.

Speaker Change: Her work and commitment enabled us to achieve record results, while continuing to drive our strategy forward.

Speaker Change: Today, we.

Speaker Change: The solid business momentum was underpinned by increased plasma capabilities and efficiencies and the completion of all key 2024 innovation milestones.

Speaker Change: We will review these achievements the key drivers on financial metrics behind our performance.

Speaker Change: Our priorities for achieving sustainable growth in the upcoming years.

Speaker Change: We have reported improvements across key financial ratios, while prioritizing free cash flow generation and deleveraging.

Speaker Change: Tomorrow February 27, the company will host its couple of market day in London, where it will be a great opportunity to hear from Greenfields leaderships on the company's strategy ambition for the future and also about our guidance for 2025.

Speaker Change: Both Q4 and full year 2020 for revenues and adjusted EBITDA reached new all time highs in.

Speaker Change: At the same time, we significantly strengthen our balance sheet through the Shanghai rise asset sale organic deleveraging and enhanced liquidity.

Speaker Change: Turning to slide five that's already mentioned.

Speaker Change: It's only 4% of many challenges. Despite this the company continued implementing the strategy the strategy across the organization is reflected in our strong business performance reinforced financial position along with changes implemented at the governance level.

Speaker Change: We continue to reshape the company with a strengthening corporate governance and leadership team.

Speaker Change: <unk> was expanded with additional members who brings a broad range of expertise centers periods, reflecting an ongoing determination to the best practices as.

Speaker Change: On a fundamental level of the business, we closed a landmark year by outpacing market growth driven by robust underlying demand on a restaurant biopharma franchise.

Speaker Change: As we announced yesterday the almost last month will retire from the board and I'm Catherine burner will be nominated to become the new chair after the AGM in June.

Speaker Change: The solid business momentum was underpinned by increased plasma capabilities and efficiencies and the completion of all key 2020 for innovation on my list.

And joining us independent directors few months ago, and I look forward to working with her to continue enhancing and strengthening our governments.

Speaker Change: We have reported improvements across key financial ratios, while prioritizing free cash flow generation and deleveraging.

I wanted to take this opportunity to thank Thomas for his continued support and great contribution to agree with defaults over two decades and are specifically for his strong support to me during the last year. Thanks for everything Thomas you will certainly be missed.

Speaker Change: Both Q4 and full year 2020 for revenues and adjusted EBITDA reached a new all time highs and.

Speaker Change: At the same time, we significantly strengthened our balance sheet through the Shanghai Rush, I said shame organic deleveraging and enhanced liquidity.

Speaker Change: In parallel the leadership team continued to evolve ration appointments of executive to key organizational position reflect our focused efforts to bring in top talent blending fresh perspective with invaluable experience of internal leaders.

Speaker Change: We continue to reshape the company with the strengthening corporate governance and leadership team.

Speaker Change: The board was expanded with additional members who brings a broad range of expertise centers periods, reflecting an ongoing determination to the best practices.

Speaker Change: These governance and leadership Air Force has been.

Speaker Change: There's also been closely linked with our continuous improvement and sustainability, which is a fundamental aspect of our corporate and business activities. In 2024, we had bounced our sustainability agenda and this is reflected in greenfields being ranked the number one biotech company in the Dow Jones best in class indices and recognized as a 2025 industry top rated companies.

Speaker Change: As we announced yesterday, so almost glassman will retire from the board and I'm Catherine Bernard will be nominated to become the new chair after the AGM in June.

Speaker Change: I'm joined on as independent directors few months ago, and I look forward to working with her to continue enhancing on the strengthening our governments.

Speaker Change: I want to take this opportunity to thank Thomas for his continued support and great contribution to agree we close over two rate cuts and then specifically pork is a strong support to me during the last year. Thanks for everything Thomas you will certainly be missed.

Speaker Change: <unk> analytics.

Speaker Change: Shifting our focus to financial results in more detail in Q4, we were able to continue building on the strong momentum and closed the year on a high note.

Revenues in the fourth quarter totaled.

Speaker Change: In parallel the leadership team continue to vote ration appointments of executive to key organizational position reflects our focused efforts to bring in top talent blending fresh perspective with invaluable experience of internal leaders.

Speaker Change: Nearly $2 billion.

Speaker Change: Representing a 13 six increase.

Speaker Change: The increase on a constant currency basis compared to the previous year.

Speaker Change: This will record full year revenues, which reached 72 billion euros, representing double digit growth of 10, 3% at constant currency over a record 2023.

Speaker Change: These governance and leadership at force has been.

Speaker Change: It's also been closely linked with our continuous improvement and sustainability, which is a fundamental aspect of our corporate and business activities. In 2024, we had bounds our sustainability agenda and this is reflected in greenfields being ranked the number one biotech company and that our Jones best in class indices and recognized as a 2025 industry top rated companies.

Adjusted EBITDA for the quarter reached 526 million euros with a margin of nearly 27%.

Speaker Change: Our adjusted EBITDA came in just shy of our full year guidance, but exceeded market consensus, reaching 1770 9 million.

Speaker Change: I supposed analytics.

Speaker Change: And all time record high for the company with a 24, 7% margin.

Speaker Change: Yeah.

Speaker Change: Shifting our focus to the financial results in more detail in Q4, we were able to continue building on the strong momentum and closed the year on a high note.

Speaker Change: Regarding free cash flow I want to emphasize the clear commitment and consistent execution, we have demonstrated in this area.

Speaker Change: Revenues in the fourth quarter totaled.

Speaker Change: They net generation of cash flow has been a key milestone of our financial performance this year.

Speaker Change: Nearly 2 billion representing.

Presenting a $10 six increase the percentage increase on a constant currency basis compared to the previous year.

Speaker Change: Thanks to our strong business fundamentals and conservative financial approach free cash flow for the quarter further improve to 335 million.

Speaker Change: This will record full year revenues, which reached 722 billion representing double digit growth of 10, 3% at constant currency over a record 2023.

Speaker Change: And this contributed to our strong year end result of 267 million euros far exceeding our initial guidance for the year.

Speaker Change: Adjusted EBITDA for the quarter, Richard 526 million euros with a margin of nearly 27%.

Speaker Change: As we continue to view cash flow cash flow generation as a cornerstone of our strategy for whole will shortly provide a more in depth analysis.

Speaker Change: Full year adjusted EBITDA came in just shy of our full year guidance, but exceeded market consensus, reaching 1770 9 million euros and all time record high for the company with a 24, 7% margin.

Speaker Change: In parallel we have continued to execute our disciplined approach to balance sheet strengthening and financial management.

Speaker Change: We have continued our organic deleveraging path.

Speaker Change: Our leverage ratio to four six times, a significant improvement over six eight times in Q1, 'twenty for just three quarters ago.

Speaker Change: Regarding free cash flow I want to emphasize the clear commitment and consistent execution, we have demonstrated in this area.

Speaker Change: Recently, we have conducted a series of capital market transactions that help us to refinance our debt address near term debt maturities and enhanced our liquidity position.

Speaker Change: They're staying in the generation of cash flow has been a key milestone of our financial performance this year.

Speaker Change: So I'm sort of strong business fundamentals and conservative financial approach free cash flow for the quarter further improved to 335 million.

Turning to top line results I will share the drivers to a positive performance of reported our total revenue grew by 10, 3% at constant currency in 2024.

Speaker Change: And this contributed to a strong year end results of 267 million euros.

Speaker Change: <unk> growth has continued escalating from $9 three in Q2 to $12 four in Q3, and a remarkable 13, 6% in Q4 all in constant currency basis. This acceleration was a steer by biopharma growing up 15, 1% for the quarter and 11, 3% in the year.

Speaker Change: Foreign exceeding our initial guidance for the year.

Speaker Change: As we continue to view cash flow cash flow generation as a cornerstone of our strategy for whole will shortly provide a more in depth analysis.

Speaker Change: In parallel we have continued to execute our disciplined approach to why don't you the strengthening and financial management.

Our biopharma business and more specifically our immune to global <unk> franchise continued to be the cornerstone of our growth strategy with double digit growth driven by <unk> and <unk> demand remains robust as immunoglobulin reinforced its position as the standard of care, which lead us to anticipate continued strong demand.

Speaker Change: Continue with our organic deleveraging impact provision or delivered Australia to four six times a significant improvement over six eight times in Q1 24, just three quarters ago.

Speaker Change: Additionally, we have conducted a series of capital market transactions that help us to refinance our debt others near term debt maturities and enhanced our liquidity position.

I'll women also delivered a solid performance as we continued to see the man across China and the U S. The long term agreement with China through Shanghai, Ross reinforces our position in the important albumin market.

Yeah.

Speaker Change: Turning to topline results I will show you the drivers the positive performance of reported our total revenue grew by 10, 3% of constant currency in 2024.

And diagnostic we saw a 2% decline on a constant currency basis for the quarter, resulting in a 7% increase year to date.

Speaker Change: This growth has continued escalating from nine three in Q2 to $12 40 in Q3, and a remarkable 13, 6% in Q4.

Speaker Change: Agnostic remains a key contributor to our business and even more important to our cash flow as we maintained our leadership position and strengthen our presence in core markets. We remain confident in the future of diagnostics that we are implementing our strategic plan.

Speaker Change: Following constant currency basis. This acceleration was a steer by biopharma growing up 15, 1% for the quarter and 11, 3% in the year.

Speaker Change: Our biopharma business and more specifically our immune to global <unk> franchise continued to be the cornerstone of our growth strategy with double digit growth driven by Jeep and <unk> demand remains robust as immunoglobulin reinforced its position as the standard of care, which lead us to anticipate continued strong.

Speaker Change: Biopharma remains an attractive business with high growth potential the rising demand for plasma derived therapies as clear given the amount of undiagnosed patients within our core markets and clear potential for new indications on proteins or.

Speaker Change: Our Biopharma business continues to be the main growth driver in the fourth quarter provides underlying market demand coupled with improved commercial excellence enable us to improve our sequential performance in growth compared to previous quarters with a 15, 1% increase in the fourth quarter and 11, 3% year to those growth.

Speaker Change: Demand.

Speaker Change: Our women also delivered a solid performance as we continue to see them on across China and the U S.

Long term agreement with China for Shanghai, Russ reinforces our position in this important album and Mark.

Speaker Change: Diagnostic we saw a 2% decline on a constant currency basis for the quarter, resulting in a 7% increase year to date.

Speaker Change: Immunoglobulin continues to be our highest growth protein, reflecting increasing demand for both intravenous and subcutaneous therapies sales of AIG had a strong quarter growing up 15, 6% and closed the year with 13, 6% growth.

Speaker Change: Diagnostic remains a key contributor to our business and even more important to our cash flow as we maintained our leadership position and strengthen our presence in core markets. We remain confident in the future of diagnostics that we are implementing our strategic plan.

Speaker Change: Driven by a strong performance in the U S and international markets at the same time subcutaneous immunoglobulin sales demonstrated exceptional growth expanding by 56% in the year at constant currency driven.

Speaker Change: Yeah.

Speaker Change: Driven by successful launches and continued traction in key global regions.

Speaker Change: Meanwhile, albumin demand remained steady with full year growth of 8% both at constant currency driven by consistent demand in China and the U S.

Our Biopharma business continues to be the main growth driver in the fourth quarter pro biased underlying market demand, coupled with improving commercial excellence enable us to improve our sequential performance in growth compared to previous quarters with a 15, 1% increase in the fourth quarter and 11, 3% yet to those growth.

Of our white under specialty proteins continue with solid results improving for our year to date growth of four 9% at constant currency.

U S. Alpha one franchise continued recovery momentum following the transition of the speciality pharma distributor while demand for drivers continuing solid through the quarter.

Speaker Change: Immunoglobulin continues to be our highest growth protein, reflecting increasing demand for both intravenous and subcutaneous therapies. So I'm sorry, five AIG had a strong quarter growing up 15, 6% and closed the year with 13, 6% growth.

Speaker Change: Our global diversified plasma protein footprint continues to enhance supply reliability drive efficiencies and support sustainable long term growth in the recent years, we have strategically expanded our donor center footprint globally.

Speaker Change: Alongside we have continued efforts to amplify network efficiency through implementing integrated new technologies and process improvements to optimize collection and mono factory.

Speaker Change: Driven by successful launches and continued traction in key global regions.

Speaker Change: Meanwhile, I'll women demand remained steady with full year growth of 8% both at constant currency driven by consistent demand in China and the U S.

Speaker Change: Through targeted operational efficiencies, we have streamlined our organization and enhanced donor center operations, leading to consistent reduction in our cost per liter.

Speaker Change: So why don't the specialty proteins continue with solid results improving for our year to date growth of four 9% of constant currency.

Speaker Change: Simultaneously, we have optimized donor compensation models to balance cost efficiently efficiency, while maintaining a laser focus on learner experience.

Speaker Change: U S household loan franchise continued recovery momentum following the transition of the speciality pharma distributor while demand for <unk> continuing solid through the quarter.

Speaker Change: It's part of our efforts to continue to generate inefficiency neuroplasm optimization strategy. Our core initiative is the individualized Nomura and rollover, which is already implemented and approximately 60% of our U S donor centers.

Speaker Change: This initiative is.

Speaker Change: It's designed to improve the nation quality and donor satisfaction, while increasing plasma volume per the nation with.

Speaker Change: With our strong execution plan in place. We're currently on track to fully improve nomogram U S adoption further enhancing our collection capabilities.

Speaker Change: Alongside we have continuous efforts to amplify network efficiency through implementing integrated new technologies and process improvements to optimize collection and manufactured.

Speaker Change: On the manufacturing side, we continue to deliver sustained yield improvement maximizing the output from each liter of plasma collected which remains a critical lever in ensuring a reliable and cost effective supply.

Speaker Change: Through targeted operational efficiencies, we have a streamline our organization and enhanced donor center operations, leading to consistent production and our cost per liter.

Speaker Change: Turning to slide 10.

Speaker Change: Simultaneously, we have optimized donor compensation models to balance cost efficiently efficiency, while maintaining a laser focus on learner experience.

Speaker Change: Innovation remains a fundamental pillar of our long term strategy and 2024. It was a year of substantial progress in research and development.

Speaker Change: It's part of our efforts to continue the generating efficiency neuroplasm optimization and the strength that you are recording initiative is the individualized Nomura and rollover, which is already implemented and approximately 60% of our U S donor shippers.

Speaker Change: That earlier, we achieved all innovation related milestones reinforces <unk> commitment to bringing transformative therapies to the market.

Speaker Change: The most recent update within our pipeline is the progress of fibrinogen.

Speaker Change: This initiative is.

Speaker Change: After the success of the outsourced clinical trial showing positive top line study results released in February 24, the required regulatory filings were completed in both Europe and in the U S. They.

Speaker Change: It's designed to improve the nation quality and donor satisfaction, while increasing plasma volume part of the nation.

Speaker Change: With our strong execution plan in place. We're currently on track to fully improve nomogram U S adoption further enhancing our collection capabilities.

Speaker Change: The FDA has since accepted our BLA filing and granted it below five eight for December 27 2025.

Speaker Change: We expect the first countries approvals in the rabbit, and United Europe, and Europe, and thereafter in the United States in advance we are on track to share the staggered or sold shortly as we have engaged with several relevant stakeholders in the scientific landscape.

Speaker Change: Turning to slide 10.

Speaker Change: Innovation remains a fundamental pillar of our long term strategy and 2024. It was a year of substantial progress in research and development.

Speaker Change: We also released the completion of our <unk> study.

Speaker Change: Although the trial did not meet this primary endpoint and improvement in transplant free survival mortality and this is related complications was observed for patients farther and notable improvement in time to liver transplant or death.

Speaker Change: That earlier, we achieved all innovation related milestones reinforcing our commitment to bringing transformative therapies to the market.

Speaker Change: The most recent update within our pipeline as the progress of fibrinogen.

Speaker Change: At three months worth of Sir for the study treatment. We continue to work on analyzing the full results and will present them during the first half of the year.

Speaker Change: Finally, as I speak through innovation is a fundamental pillar I want to highlight that Greenfield received a grant from the Michael J Fox Foundation for Parkinson's research to identify plasma based biomarkers that could indicate a personal likelihood of developing parkinson disease. Many years before clinical diagnosis the initiative.

Speaker Change: The FDA has since accepted our BLA filing and granted at Baidu Friday for December 27, 2025.

Speaker Change: We expect the first countries approvals in Europe, and United Europe.

Speaker Change: In Europe and thereafter in the United States in advance we are on track to share the staggered or sold shortly as we have engaged with several relevant stakeholders in this difficult task.

Speaker Change: Called Kronos PD could accelerate the discovery of new diagnostic tools as well as the data amplification on development novel. This is modifying therapeutics.

Speaker Change: We also released the completion of our <unk> study, although the trial did not meet this primary endpoint and improvement in transplant free survival mortality of this is related complications was offset of four patients file there a notable improvement in time to liver transplant or death.

Speaker Change: These are the management's demonstrated the strength of our innovation pipeline and our dedication to improving patient outcomes and with that I'll turn it over to Rahul <unk>, who will walk us through our financial results. Thank you.

Speaker Change: At three months worth of share for the study treatment. We continue to work on analyzing the full results and will present them during the first half of the year.

Thank you Joe.

Speaker Change: As slide 11 says it has been a strong finish to a second consecutive record year.

Speaker Change: Performance that we are proud of notwithstanding all the challenges faced by the company in 2024, let.

Speaker Change: Let me also take the opportunity to thank all our colleagues for their amazing work in 2020 for keeping their eye and efforts resolutely focused on delivering for our customers and patients while it's having our donuts.

Speaker Change: Call Chronos, PD with accelerate the discovery of new diagnostic tools as well as the data amplification on development novel. This is modify inside our buildings. These are the management's demonstrate the strength of our innovation pipeline and our dedication to improving patient outcomes and with that I'll turn it over to Rahul <unk>, who will walk us through our financial run.

Speaker Change: We often talk about the Griffin spirit internally.

Speaker Change: This collective performance in 2020 full exemplifies this greenfield spirit.

Speaker Change: And I am proud to be a part of this awesome team.

Speaker Change: Moving to page 12.

Speaker Change: Before I go into our Q4 and full year financial performance in 2024. Please consider 2020 fours relative performance to what was already a record financial performance in 2023 Q.

Rahul Srinivasan: Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: Sure.

Speaker Change: As slide 11 says it has been a strong finish to a second consecutive record year.

Speaker Change: Q4, 2024 was the best quarter in our history and.

Speaker Change: In fact, our full best quarters ever have all come in the last five quarters, and our Q4 performance versus our prior record Q4 2023 performance shows the continuing strong momentum we have significantly outgrowing revenues and adjusted EBITDA by 13, 6%.

Speaker Change: Our performance that we are proud of notwithstanding all the challenges faced by the company in 2024, let.

Speaker Change: And 18, 5%, respectively on a constant currency basis the.

Speaker Change: We often talk about the peripheral spirit internally.

Speaker Change: This collective performance in 2020 full exemplifies this crihfield spirit.

Speaker Change: The Cherry on top of this performance was significantly improved free cash flow generation pre M&A of $335 million this quarter and I will expand on the drivers of this performance further in the presentation.

Speaker Change: And I am proud to be a part of this awesome team.

Speaker Change: Moving to page 12.

Speaker Change: Before I go into our Q4 and full year financial performance in 2020 full please consider 2020 fours relative performance to what was already a record financial performance in 2023.

Speaker Change: With respect to our full year performance very strong momentum in revenues up 10, 3% on a constant currency basis to $7 2 billion well ahead of guidance led by Biopharma that was up 11, 3% on a constant currency basis overall prior record year in 2023.

Speaker Change: Q4, 2024 was the best quarter in our history.

Speaker Change: With our international business growing significantly and further diversifying our strong biopharma business alongside our U S business that also delivered a strong Q4.

Speaker Change: We are growing meaningfully faster than the market.

Speaker Change: And 18, 5%, respectively on a constant currency basis.

Speaker Change: 2024, adjusted EBITDA was up 21% on a constant currency basis, and adjusted EBITDA margin, improving by 230 basis points, having improved 160 basis points in 2023.

Speaker Change: The Cherry on top of this performance was the significantly improved free cash flow generation pre M&A of $335 million this quarter and I will expand on the drivers of this performance further in the presentation.

Speaker Change: And also pleasing to see that momentum come through net income that was up over 270%. Even if it is coming from a low base and fully acknowledging that we have more work to do to fulfill our potential at that net income level.

Speaker Change: Record year in 2023, with our international business growing significantly and further diversifying our strong biopharma business alongside our U S business that also delivered a strong Q4.

Clearly the standout performance was a significant beat of the free cash flow level, confirming our strong conviction around <unk> ability to generate free cash flow and we are confident around our ability to ramp up this free cash flow generation meaningfully over time.

Speaker Change: We are growing meaningfully faster than the market.

Speaker Change: On leverage at four six times it may seem that we fell shy of the four and a half times expectation, but that does not reflect the full story the rapid strengthening of the U S. Dollar in Q4 created a headwind for us from a balance sheet translation perspective, which would ordinarily be more than offset by the positive.

Speaker Change: 2024, adjusted EBITDA was up 21% on a constant currency basis, and adjusted EBITDA margin, improving by 230 basis points, having improved 160 basis points in 2023.

Speaker Change: The impact on EBITDA level, if the strengthening had happened say less rapidly over the course of the year.

Speaker Change: Adjusting for this re leveraging as a result of the rapid dollar strengthening our leverage would have been in fact come inside the four five times guidance you can see our rapid deleveraging progress in the last four quarters from six eight times in Q1 to four six times at the end of Q4.

Speaker Change: Net income level.

Speaker Change: Clearly the standout performance was a significant beat of the free cash flow level, confirming our strong conviction around <unk> ability to generate free cash flow and we are confident around our ability to ramp up this free cash flow generation meaningfully over time.

Speaker Change: The leverage indications here consistent with the way we have shown it in the past is defined as per our credit agreement and as I had guided to in Q3, our secured leverage now is at only two seven times that is the lowest I recall Griffin secured leverage <unk>.

Speaker Change: On leverage at four six times it may seem that we fell shy of the four five times expectation, but that does not reflect the full story the rapid strengthening of the U S. Dollar in Q4 created a headwind for us from a balance sheet translation perspective, which would ordinarily be more than offset by the positive.

Speaker Change: And finally, I feel very good about our liquidity position coming into 2025.

Speaker Change: Slide 13.

Speaker Change: The impact at EBITDA level, if the strengthening had happened say less rapidly over the course of the year.

Speaker Change: The consistency of the performance across the board and across every metric shows the fundamental health of Mentum in the business.

Speaker Change: Quarterly revenue growth going up from five 5% in Q1, all the way up to 13, 6% in Q4 quarterly EBITDA margin improving from 21 six.

Speaker Change: Ascent by 500 basis points to 26, 6% in Q4 quarterly free cash flow pre M&A progression, allowing us to convincingly beat our guidance and on the leverage front other than the Shanghai rash disposal impact on metrics in Q2, the deleveraging has been organically driven.

Speaker Change: By the significant growth in adjusted EBITDA and free cash flow pre M&A performance.

Speaker Change: And finally, I feel very good about our liquidity position coming into 2025.

Speaker Change: Simply put it has been a terrific year led not only by actions from the business during the year, but also actions from the past bearing fruit and we look forward to taking this momentum into 2025 and beyond whilst dealing with the headwind of the inflation reduction act in the U S. <unk>.

Speaker Change: Slide 13.

Speaker Change: The consistency of the performance across the board and across every metric shows the fundamental health and momentum in the business.

Speaker Change: Quarterly revenue growth going up from five 5% in Q1, all the way up to 13, 6% in Q4 quarterly EBITDA margin improving from 21 six.

Speaker Change: <unk> 14.

Speaker Change: Simple message from this slide is that adjusted EBITDA is coming through in reported EBITDA rapidly often within six to nine months and I expect this convergence to continue particularly as we focus on reducing the cash adjustments between adjusted EBITDA and reported EBITDA and the <unk>.

Speaker Change: Ascent by 500 basis points to 26, 6% in Q4 quarterly free cash flow pre M&A progression, allowing us to convincingly beat our guidance.

Speaker Change: And on the leverage front other than the Shanghai Ras disposal impact on metrics in Q2, the deleveraging has been organically driven by the significant growth in adjusted EBITDA and free cash flow pre M&A performance.

Speaker Change: <unk> reported EBITDA is even more satisfying having grown 32% versus our prior record year in 2023.

Speaker Change: Reported EBITDA margins grew 380 basis points in 2024, and the drivers for adjusted and reported EBITDA growth are CPL reduction volume growth yield improvement and continuing operational leverage and cost discipline.

Speaker Change: In terms of the main adjustments between adjusted and reported EBITDA. The main cash adjustment related to one off restructuring and transaction costs, So pretty identifiable and then being exceptional and one off and on noncash adjustments principally related to bypass next level and impairments.

Slide 14.

Speaker Change: Slide 15, we.

Speaker Change: We see the clear evidence on the left hand side of this slide.

Speaker Change: <unk> reported EBITDA is even more satisfying having grown 32% versus our prior record year in 2023.

Speaker Change: Off the operational leverage improvement I referred to on the prior slide where opex as a percentage of sales has declined to 21% in 2024 as I mentioned on the Q3 call. We believe that there could be further squeezing of those opex margins possible and we do intend to use some of that benefit to keep our R&D.

Speaker Change: Effort invigorated.

Speaker Change: I would also like to update you on a change in our treatment of our U S fee for services and GPO fees in line with market practice. These fees will be accounted for in our gross to net sales rather than in Opex, which will have no impact on EBITDA at all the full year impact of this change was made in <unk>.

Speaker Change: Q4, 2024, and as a result, it will distort the revenue growth profile somewhat in the coming quarters.

Speaker Change: Slide 15.

Speaker Change: We see the clear evidence on the left hand side of this slide.

Speaker Change: Conversely, we have more work to do on the gross margin front, which is just as exciting as we think about opportunities to continue our EBITDA margin growth in the coming years, and we believe that returning to pre COVID-19 gross margins is achievable driven by further planned CPL reduction commercial growth efforts across the <unk>.

Speaker Change: <unk>, new product launches, including fibrinogen and Nemo go in due course try module in our yield improvement efforts and continued execution of the planet by test more on this as part of our value creation plan and our capital markets day presentation Tomorrow.

Speaker Change: R&D effort invigorated.

Speaker Change: Slide 16, this slide shows our quarterly evolution of free cash flow pre M&A, we had a very strong finish to the generating $335 million of free cash flow pre M&A, culminating a year with sequential improvement of free cash flow each quarter, a couple of points to flag on this slide one.

Speaker Change: Full year impact of this change was made in Q4 2024 and as a result, it will distort the revenue growth profile somewhat in the coming quarters.

Speaker Change: Firstly, we have more work to do on the gross margin front, which is just as exciting as we think about opportunities to continue our EBITDA margin growth in the coming years, and we believe that returning to pre COVID-19 gross margins is achievable driven by further planned CPL reduction commercial growth efforts across the board.

Speaker Change: The sequential improvement of free cash flow pre M&A in 2024 is it a coincidence, but it is fair to assume that Q1 tends to be our worst quarter being meaningfully negative from a free cash flow generating perspective before turning in subsequent quarters.

Speaker Change: New product launches, including fibrinogen and go into <unk> module in our yield improvement efforts and continued execution of the planet by attached more on this as part of our value creation plan and our capital markets day presentation Tomorrow.

Speaker Change: The second topic I wanted to touch on was the key drivers behind our free cash flow outperformance in 2024 versus our prior guidance at the beginning of 2020 for two principal drivers for the outperformance one unusually inventory evolution in 2024 released capital rather than consuming capital and this was due to.

Speaker Change: Slide 16, this slide shows our quarterly evolution of free cash flow pre M&A, we had a very strong finish to the year generating $335 million of free cash flow pre M&A, culminating a year with sequential improvement of free cash flow each quarter.

Speaker Change: To a some of the structural improvements in inventory that I will touch on on the next slide and B, we have been much more aggressive in our management of inventory and again, we will see that on the next slide.

Speaker Change: Couple of points to flag on this slide one the sequential improvement of free cash flow pre M&A in 2024 is it coincidence, but it is fair to assume that Q1 tends to be our worst quarter being meaningfully negative from a free cash flow generating perspective before tuning in subsequent quarters.

Second driver being a rationalizing and rescheduling of Capex that isn't time critical ending up spending meaningfully less than our guidance at the beginning of 2020 for.

Speaker Change: Third point I would caution against run rating Q4 cash flows are indeed, the free cash flow conversion achieved in Q4, we finished 2024 with a free cash flow pre M&A to adjusted EBITDA conversion of 15% and we will share with you tomorrow, our expectations to improve that during the course of <unk>.

Speaker Change: Yes.

The second topic I wanted to touch on was the key drivers behind our free cash flow outperformance in 2024 versus our prior guidance at the beginning of 2020 full two principal drivers for the outperformance one unusually inventory evolution in 2024 release capital rather than consuming capital and this was due.

Speaker Change: Our five year strategic plan.

Speaker Change: Fourthly, the benefit of having diagnostics in our portfolio given its high free cash flow conversion is very clear.

Speaker Change: Due to a some of the structural improvements in inventory that I will touch on on the next slide and B, we have been much more aggressive in our management of inventory and again, we will see that on the next slide.

Speaker Change: And the final point I'd make here is that this business can absolutely produce meaningful amount of free cash flow, whilst continuing to support the capital needs of the business to be able to not only capture the high highly attractive and circular topline and profitability growth opportunities, but also continued to develop a product.

Speaker Change: Second driver being a rationalizing and rescheduling of Capex that isn't time critical ending up spending meaningfully less than our guidance at the beginning of 2020 for.

Speaker Change: Portfolio to deal with any competitive threats over the medium to long term.

Speaker Change: Based on all the actions taken in the past both during the course of 2024 and earlier. It is clear that we have a number of levers to deliver progressively stronger free cash flow and we will talk about that further in our capital markets Day Tomorrow.

Speaker Change: Slide 17.

Speaker Change: Our five year strategic plan.

Speaker Change: Firstly, the benefit of having diagnostics in our portfolio given its high free cash flow conversion is very clear.

Speaker Change: On the left hand side, we show the evolution of our inventory days and the annual consumption or releasing capital relating to inventory the combination of lower inventory days and capital invested in inventory declining from 2022, and the exceptional capital release from inventory in 2020.

Speaker Change: And the final point I'd make here is that this business can absolutely produce meaningful amount of free cash flow, while continuing to support the capital needs of the business to be able to not only capture the high highly attractive and circular topline and profitability growth opportunities, but also continued to develop our products.

Speaker Change: For the following reasons.

Speaker Change: P L continuing to reduce nicely over the period inventory levels, improving normalizing, implying less need to invest capital to replenish inventory levels.

Speaker Change: Portfolio to deal with any competitive threats over the medium to long term.

Speaker Change: Based on all the actions taken in the past both during the course of 2024 and earlier. It is clear that we have a number of levers to deliver possibly stronger free cash flow and we will talk about that further.

Speaker Change: An improvement in balancing the liter.

Speaker Change: Yield improvements essentially being able to do more with less.

Speaker Change: In the case of 2020 for a very strong sales push across the year and end to end supply chain management with respect to inventory.

Speaker Change: Good day Tomorrow.

Speaker Change: Slide 17.

Speaker Change: In our efforts to demonstrate more quickly our ability to unlock free cash flow generation pre M&A, we have pushed this lever hard and it shows us the art of the possible that being said, we will resume our investment in inventory from 2025 onwards, and balanced being efficient with our inventory levels, while ensuring we have the right inventory.

Speaker Change: On the left hand side, we show the evolution of our inventory days and the annual consumption or releasing capital relating to inventory.

Speaker Change: The combination of lower inventory days and capital invested in inventory declining from 2022, and the exceptional capital release from inventory in 2024 for the following reasons CPL continuing to reduce nicely over the period inventory levels, improving normalizing, implying less need to.

Speaker Change: Stratify, the strong and growing demand for our products and you will hear from US Tomorrow, our plans for 2025 and beyond with a balanced approach.

Speaker Change: On the right hand side. This chart includes all our Capex and capitalized in R&D over time, and the expectation remains that current elevated levels as a percentage of revenues will subside over the coming years and tomorrow, we will provide guidance on how to view our spend in absolute numbers as well as the implied percentage of revenues.

Speaker Change: We invest capital to replenish inventory levels and.

Speaker Change: An improvement in balancing the retail.

Speaker Change: Yield improvements essentially being able to do more with less.

Speaker Change: In the case of 2020 for a very strong sales push across the year and end to end supply chain management with respect to inventory.

Speaker Change: We'll show a meaningful normalization in the coming years, we are in an industry that has secular high growth rates, one that benefits from high profitability levels with strong prospects for free cash flow generation pre M&A. This is the lens through which we need to view, our investment in inventory and Capex and capitalized <unk>.

Speaker Change: In our efforts to demonstrate more quickly our ability to unlock free cash flow generation pre M&A, we have pushed this lever hard and it shows us the art of the possible that being said, we will resume our investment in inventory from 2025 onwards, and balance being efficient with our inventory levels, while ensuring we have the right inventory.

Speaker Change: R&D to capture these phenomenal opportunities.

Speaker Change: Saturday by the strong and growing demand for our products and you will hear from US Tomorrow, our plans for 2025 and beyond with a balanced approach on the right hand side. This chart includes all our Capex and capitalized R&D over time and the expectation remains that current elevated levels as a percentage of revenues.

Speaker Change: Slide 18.

Speaker Change: Hopefully this slide speaks for itself with respect to the underlying momentum behind the normalizing of free cash flow generation pre M&A as we compare 2024 to 2023.

Speaker Change: This slide also shows the different phases of our inventory evolution since the pandemic, where 2023 being the last of the years were exceptional capital investment was required.

Speaker Change: Will subside over the coming years and tomorrow, we will provide guidance on how to view our spend in absolute numbers as well as the implied percentage of revenues that will show a meaningful normalization in the coming years. We are in an industry that has secular high growth rates, one that benefits from high profitability levels with <unk>.

Speaker Change: In order to replenish our inventory to more normalized levels.

Speaker Change: And 2024 significantly benefiting from some of the factors I mentioned in the prior slide including continued CPL reduction strong sales growth in 2024, and a more aggressive end to end supply chain management with respect to our inventory.

Speaker Change: Strong prospects for free cash flow generation pre M&A. This is the lens through which we need to view, our investment in inventory and Capex and capitalized it and R&D to capture these phenomenal opportunities.

Speaker Change: We continue to feel positive about improving free cash flow generation from EBITDA growth subsiding levels of Capex and capitalized it and R&D over time, reducing cash outs from transaction and restructuring costs and overtime, reducing our cash interest more on that when we present, our strategic plan tomorrow.

Speaker Change: Slide 18.

Speaker Change: Hopefully this slide speaks for itself with respect to the underlying momentum behind the normalizing of free cash flow generation pre M&A as we compare 2024 to 2023.

Speaker Change: Slide 19.

Speaker Change: This slide also shows the different phases of our inventory evolution since the pandemic, where 2023 being the last of the years were exceptional capital investment was required.

Speaker Change: Balance sheet Derisking is substantially progressed and our continued focused on organic deleveraging will complete this process the significant debt reduction achieved by the Shanghai rush stake disposal, coupled with the strong deleveraging, resulting from the 21% growth in our adjusted EBITDA together with the.

Speaker Change: In order to replenish our inventory to more normalized levels and.

Speaker Change: Meaningful outperformance of our free cash flow generation pre M&A has taken leverage down from six eight times in Q1 to four six times at the end of 2024 as we mentioned previously with our secured leverage being in what I think is at an all time low of two seven times.

Speaker Change: Add to that the leverage neutral refinancing we executed in December 2024, after which our next set of meaningful funded maturities is not until Q4 2027.

Speaker Change: And finally, a significantly improved liquidity of $1 9 billion by the end of 2024.

Speaker Change: Slide 19.

Speaker Change: Balance sheet Derisking is substantially progressed and our continued focus on organic deleveraging will complete this process the significant debt reduction achieved by the Shanghai raw steak disposal, coupled with the strong deleveraging, resulting from the 21% growth in our adjusted EBITDA together with them.

Speaker Change: Our balance sheet is in a strong position and I have no concerns at all about any refinancings as and when they come to you as evidenced by the two private placements. This year, our key focus will be to optimize the conditions of the refinancing and we can do that given our strong rerating potential.

Speaker Change: A meaningful outperformance of our free cash flow generation pre M&A has taken leverage down from six eight times in Q1 to four six times at the end of 2020 full as we mentioned previously with our secured leverage being in what I think is at an all time low of two seven times.

Speaker Change: <unk> using other leavers.

Speaker Change: And finally, we have a syndicate of global banks that have supported our extension of the ICF and I'm very pleased with the high quality of the syndicate.

Speaker Change: So to summarize we have a strong finish to our second successive record year and we have made significant progress on critical fronts be it the meaningful outperformance on free cash flow generation pre M&A, all the substantial derisking and strengthening of our balance sheet, we will stay resolutely focused on execution.

Speaker Change: Add to that the leverage neutral refinancing we executed in December 2024, after which our next set of meaningful funded maturities is not until Q4 2027.

Speaker Change: And finally, a significantly improved liquidity.

Speaker Change: One 9 billion by the end of 2024.

Speaker Change: And driving the business forward.

Speaker Change: Notwithstanding the headwind of the part D redesign in the inflation reduction Act, we look forward to updating you tomorrow on our strategic plan as well as sharing our expectations for another record year in 2025 with that let me hand, it back to Nacho to wrap it up.

Speaker Change: Using other levers and finally, we have a syndicate of global banks that have supported our extension of the Rcs and I'm very pleased with the high quality of the syndicate.

Speaker Change: Turning her whole I would like to wrap up the presentation with some final remarks.

Speaker Change: Reflecting upon 2024, we continue to position Greenfields for long term success 2024 has been a pivotal year to ensure sustained growth and operational excellence our commitment to disciplined capital allocation. So basic expansion and enhanced efficiency has created a stronger foundation for the future.

Speaker Change: We are proud of their tissue achievements that have positioned the company for continued success, we have shown Brazilians and deliver record breaking financial results strengthen in our operational framework and our bonds and our innovation pipeline, all while reinforcing our financial foundations.

Speaker Change: <unk> and driving the business forward notwithstanding the headwind of the part D redesign in the inflation reduction Act. We look forward to updating you tomorrow on our strategic plan as well as sharing our expectations for another record year in 2025 with that let me hand, it back to Nacho to.

Speaker Change: These accomplishments are a direct result of their vacation expertise and perseverance of our global team.

Speaker Change: Executing on our strategy and operational improvements have deliver continued savings and efficiencies will maintain financial discipline and agility and we are optimizing cash flow generation with a sharp focus on deleveraging to further strengthen our financial position.

Speaker Change: It up.

Speaker Change: Looking for a whole I would like to wrap up the presentation with some final remarks.

Speaker Change: Reflecting upon 2024, we continue to position Greenfields for long term success 2024 has been a pivotal year to ensure sustained growth and operational excellence our commitment to disciplined capital allocation. So that he can spansion and enhance efficiency has created a stronger foundation for the future.

Speaker Change: Additionally, our ongoing deal done manufacturing improvement and transformation programs.

Speaker Change: Hansen, our operations, while continuing to drive down cost.

Speaker Change: Looking ahead to the key store continued future success and growth we must remain highly focused on executing upon our strategy. That's crystal clear we hit all time highs this past year, but that only sets the stage for us to expand these improvement into 2025, we will provide a clear roadmap tomorrow with our mid term a strategic plan.

Speaker Change: We are proud of their achievements have positioned the company for continued success, we have shown Brazilians and deliver record breaking financial results strengthen in our operational framework and advancing our innovation pipeline, all while reinforcing our financial foundations.

Speaker Change: That will show, how we will deliver sustainable growth and margin expansion over the next few years, we will keep free cash flow generation and deleveraging is a top priority and last maintained the momentum gained through our commitment to best in class and sustainability.

Speaker Change: Complishments are a direct result of their vacation expertise and perseverance of our global team.

Speaker Change: Executing on our strategy and operational improvements have delivered continued savings and efficiencies.

Speaker Change: To maintain financial discipline, and agility and we are optimizing cash flow generation with a sharp focus on deleveraging to part of it has strengthened our financial position.

I want to stress that we as an organization.

Speaker Change: Not anywhere where we still want to be we are just beginning on this path as we move forward, we remain committed to better deliver long term value for our shareholders partners Donuts and the patients who rely on us.

Speaker Change: Finally, our ongoing deal done manufacturing improvement and transformation programs and enhancing our operations, while continuing to drive down cost.

Speaker Change: Before we open the call for questions I'd like to remind everyone that greenfield who will be hosting its capital market day Tomorrow February 27 at 130 P M London time with.

Speaker Change: We hope you will join in to learn more about our plans for the future and our strategy for achieving long term success.

Speaker Change: Thank you again for your continued support and with that Danny back to you.

Speaker Change: We will show, how we will deliver sustainable growth and margin expansion over the next few years, we will keep free cash flow generation and deleveraging is a top priority and last maintained the momentum gained through our commitment to best in class interesting ability.

Danny: Thank you and that you're now, let's turn to the Q&A session.

Danny: Please remember to press star five to ask a question we.

Speaker Change: We need to place a limit of two questions per analyst. If you have follow up please dial star five again to get back on the lease.

Speaker Change: I want to stress that we as an organization.

Speaker Change: After you quit after you ask your question, we will put you on mute to reduce any background noise.

Speaker Change: I think that our first question comes from Morgan Stanley.

Speaker Change: Bill.

Speaker Change: Before we open the call for questions I'd like to remind everyone that greenfield who will be hosting its capital market day Tomorrow February 27 at 130 P M London time.

Speaker Change: Please.

Speaker Change: Thank you.

Speaker Change: First question has done the north of England.

Speaker Change: You may now disconnect.

Speaker Change: I mean.

Speaker Change: Quite quite strong growth for the year.

Speaker Change: We hope you will join in to learn more about our plans for the future and our strategy for achieving long term success.

Speaker Change: Just a quick comment.

Speaker Change: Best of luck collection capacity.

Speaker Change: Thank you again for your continued support and with that Danny back to you.

Speaker Change: And.

Tony: Tony with earlier to continue that type of tenant failure.

Speaker Change: High growth.

Speaker Change: Thank you and that you're now, let's turn to the Q&A session.

Speaker Change: Just hold on a second.

Tony: Sure.

Tony: Can you go through it again please.

Speaker Change: Please remember to press star five to ask a question we.

Tony: Yes sure. Thank you. So my first question is yes.

Speaker Change: We need to place a limit of two questions per analyst. If you have follow up please dial star five again to get back on the lease.

Tony: Okay.

Tony: Very strong growth. This year, just if you could comment on them.

Speaker Change: After you quit after you ask your question, we will put you on mute to reduce any background noise.

Tony: As a clarification in terms of inventories and also plasma collection capacity.

Speaker Change: I think that our first question comes from Morgan Stanley.

Tony: If you can sustain that growth going forward.

Tony: Or if we should expect.

Speaker Change: No.

Speaker Change: Please.

Tony: Capex Capex investment to support that growth, so basically kind of the current state of your.

Speaker Change: Thank you.

Speaker Change: First question does come.

Speaker Change: Okay.

Speaker Change: It can be.

Tony: Capex It took us about that and then.

Speaker Change: Quite quite a strong finish for the year.

Tony: Just a question on the pipeline so okay I apologize people hit their hand, just wanted to know if you could give us an update on payments.

Speaker Change: If you could comment.

Speaker Change: First our credit capacity and John Terry with earlier.

Tony: <unk>.

Speaker Change: That type of growth.

Tony: The center of the brightest acquisition.

Speaker Change: Just hold a high growth just hold on a second.

And then when does it get.

Speaker Change: Can you go through it again please.

Tony: And a daycare thank you.

Tony: Thank you for a question I'll answer the first part and and Roland will comment on the dry modeling as a split of the capacity of the company I think that you will you will if you turn tune in tomorrow for our capital markets day, we definitely.

Speaker Change: Yes sure. Thank you. So my first question is just let me know.

Speaker Change: Okay.

Speaker Change: Very strong growth. This year, just if you could comment on.

Speaker Change: The current situation in terms of.

Speaker Change: The reason that's the plasma collection capacity.

Tony: Share more information, but what I can tell you right now is that the company has been doing the homework in the last years, an hour, where well prepare both from a donor centers capacity and also from manufacturing capacity for the future I think that the next year or in a very very solid position, which means that essentially the next wave of.

Speaker Change: You've got to sustain that growth going forward.

Speaker Change: Sure.

Speaker Change: If we should expect.

Speaker Change: Capex Capex investment.

Speaker Change: Product gross so basically kind of the current state of your.

Speaker Change: Cup of tea to proceed bought that and then.

Speaker Change: Just a question on the pipeline so okay I apologize.

Tony: Significant capex to expand our manufacturing footprint or the donor centers will now come in the next three to four years that is the time that we will need to entertain.

Speaker Change: Just wanted to know if you could give us an update on <unk>.

Speaker Change: Protein.

Speaker Change: The center of the biotech acquisition.

Tony: Significant capex again, but but obviously by then our position will be will be different than that today, but for the next years, we are well setup and tomorrow, we will share more information about that as per three modeling Roland will comment.

And then when does it.

Speaker Change: And a big here. Thank you.

Speaker Change: Thank you to vote for a question I'll answer the first part and and Roland will comment on the dry modeling us a split of the capacity of the company I think that you will you will if you turn tune in tomorrow for the capital markets day, where they finally.

Speaker Change: Yes, nachos remodeling, which is our polyclonal antibody preparation, including ITT ITM and Iga, we continue with our phase III study, we recently amended the protocol for updates in <unk>.

Speaker Change: Sure more information, but what I can tell you right now is that the company has been doing the homework in the last years in our we're well prepared both from a donor centers capacity and also from manufacturing capacity for the future.

Speaker Change: And out of care after Covid, which we believe positions us in a in a.

Speaker Change: And then the next year or in a very very solid position, which means that the essentially the next wave of significant capex to expand our manufacturing footprint or the donor centers will not come in the next three to four years then it's the time that we will need to entertain.

Speaker Change: The better place to have comparable data for the future.

Speaker Change: The program is continuing we are looking at an interim analysis, but we are expecting in the first half of 2026 and needless to say it'll be very very excited about the potential that <unk> could bring four to treatment not only for S Cup, which is the lead indication, but also for infections beyond that then we'll be happy to explain that in more detail tomorrow.

Speaker Change: Significant capex again, but obviously by then our position will be it will be different than that.

Roland Vandeler: But for the next years, we are well setup and tomorrow, we will share more information about that as part of the remodel in Roland will comment.

Roeland: Thank you Roeland medically ill. Thank you Thibault now lets move to Tom Jones from Bloomberg dump.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Tom Please on please.

Speaker Change: Yes, Nacho remodeling, which is our polyclonal antibody preparation, including ITT ITM and Iga, we continue with our phase III study.

Tom Jones: Sorry. My first question is just on revenue per lead to trends.

Speaker Change: We recently amended the protocol for updates in standard of care after Covid, which we believe positions us in a in it.

Tom Jones: You mentioned in your prepared remarks that some of the benefit you saw in Q4 came from improved revenue per litre.

Tom Jones: Just wondering if you could kind of drill down a little bit more on that because it seems as though I feel like a significantly outpacing the growth of everything else.

Speaker Change: And the better place to have comparable data for the future. The program is continuing we are looking at an interim analysis.

Speaker Change: Banking in the first half of 2026, and needless to say it'll be very very excited about the potential that <unk> could bring for the treatment not only for S Cup, which is the lead indication, but also for infections beyond that then we'll be happy to explain that in more detail tomorrow.

Speaker Change: In our revenue police it probably going to be if it in fact carries all youre going to get progressively more unbalanced revenues per liter and you don't really make a lot of money just selling all came from.

Tom Jones: Later plasma so beyond.

Tom Jones: Perhaps the recovery it out for one is there anything else you can point to build new products why you will seek to try and improve the revenue per liter or at least.

Speaker Change: Thank you Roeland medically ill. Thank you Thibault now lets move to Tom Jones from <unk>.

Tom Jones: Stop the offset the disproportionate effect that the very rapid growth, especially.

Speaker Change: Police on please.

Speaker Change: Okay.

Tom Jones: Especially as the other proteins.

Tom Jones: So that's question one and then second to that question too I was just wondering if you might be to share.

Speaker Change: Sorry. My first question is just on revenue per lead to trends you.

Tom Jones: What the impairment related to that you took in careful that'd be great. Thanks.

Speaker Change: You mentioned in your prepared remarks that some of the benefit you saw in Q4 came from improved revenue per litre.

Tom Jones: Got home starting with your question on revenue per liter important to highlight that we always aim to balance the growth in <unk> with the with the growth that we have on the albumin side and looking at last year.

Speaker Change: I was just wondering if you could kind of drill down a little bit more on that because it seems as though I feel like G significantly.

Speaker Change: Totally outpacing the growth of everything else.

Speaker Change: In our revenue pleated, probably going to be if it in fact carries all youre going to get progressively more unbalanced revenues per liter and you don't really make a lot of money just selling from a later plasma so beyond in there.

Tom Jones: We definitely were able to sell the equivalent amount of albumin.

Which obviously helps just as the basis of the plasma economics. In addition to the additional proteins that you that you mentioned.

Speaker Change: Perhaps the recovery it out for one is there anything else you can point to build new products why you will seek to try and improve the revenue per liter or at least stop the offset the disproportionate effect that the very rapid growth in <unk>.

Tom Jones: And the other part to highlight is that we have seen of course of last year, an improvement in yield for <unk>, which further strengthens of course, our revenue potential per liter. In addition, with our work to gaining traction in the U S and expanding globally and perhaps the last point I want to make on the it front is.

Speaker Change: Especially as the other proteins.

Speaker Change: That was question one and then second to that question too I was just wondering if you might be to share.

Speaker Change: The impairment related to that you took in Q4.

Tom Jones: That we see very strong momentum with our <unk> 75 in the U S.

Speaker Change: That'd be great. Thanks.

Tom Jones: We have at the premium price, which also helps us on the pricing side, so looking across.

Speaker Change: Got home starting with your question on revenue per liter important to highlight that we always aim to balance the growth in <unk> with the with the growth that we have on the albumin side and looking at last year, we definitely we're able to sell the equivalent amount of albumin.

Tom Jones: That's those are the drivers that are translated into higher revenue per liter last year.

Tom Jones: And the question on impairment.

Tom Jones: Relatively small I think it was roughly about $25 million or so split between.

Speaker Change: Which obviously helps just that's the basis of the plasma economics. In addition to the additional proteins that you that you mentioned and the other part to highlight is that we have seen of course of last year, an improvement in yield for <unk>, which further strengthens of course, our revenue potential per liter. In addition, with our.

Tom Jones: Split between.

Tom Jones: Sure.

Tom Jones: A small impairment at <unk> for something that is not publicly.

Tom Jones: Disclosed, but it's it's a tiny part of our health care services business and then there is another portion within biotech again relatively small numbers, Tom So nothing I would but happy to pick it up in detail offline if you'd like to.

Speaker Change: Work to gaining traction in the U S and expanding globally and perhaps the last point I want to make on that front is that we see very strong momentum with our Sop <unk> 75 in the U S.

Tom Jones: Okay. Thank you very much.

Speaker Change:

Tom Jones: We'll now I mean Alberto from Alantra.

Speaker Change: We have a premium price, which also helps us on the pricing side so looking across.

Alberto: Hi, Thanks for taking my questions. The first one is on gross margin I see the on Q4 in particular I don't know if you can guarantee around quarter on quarter. If you can explain what happened.

Speaker Change: That's those are the drivers that are translated into higher revenue per liter last year.

Speaker Change: Okay.

Speaker Change: And the question on impairment.

<unk> been there.

Speaker Change: Relatively small I think it was roughly about 25 million or so split between.

Tom Jones: Of course that has been offset by lower <unk>.

Alberto: G&A costs I guess.

Alberto: Just wanted to understand the gross margin dynamics.

Speaker Change: Split between.

Speaker Change: Yes.

Alberto: Question one.

Speaker Change: A small impairment and <unk> for something that is not publicly.

Alberto: I believe mentioned Cigna.

Alberto: A significant impact from FX on net debt I guess I really from September to December.

Speaker Change: Disclosed, but it's it's a tiny part of our health care services business and then there's another portion within buy a test again relatively small numbers, Tom So nothing I would but happy to pick it up in detail offline if you'd like to.

Alberto: It is like 5% Joe.

Speaker Change: Could you quantify the impact because when I try to reconciliate.

Alberto: Net debt evolution compared to the <unk>.

333 million free cash flow you provided.

Speaker Change: Okay.

Alberto: In Q4.

Speaker Change: Okay. Thank you very much.

Alberto: I used to make that an impact of roughly 300 million, which to me would seem too much for the FX impact. So if you could clarify that.

Speaker Change: Cool.

Speaker Change: Well I mean.

Speaker Change: <unk> from Alantra.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Hi, Thanks for taking my questions. The first one is on gross margin I see the on Q4 in particular is down both in year on year and quarter on quarter. If you could explain what.

Alberto: It would be very helpful and then I.

Alberto: I will jump back for follow up questions. Thank you.

Speaker Change: Sure. So your question on gross margin.

Speaker Change: <unk> been there.

Speaker Change: Of course that has been offset by lower.

Alberto: So.

Alberto: If you go to page 31.

Speaker Change: G&A costs, we can save you don't mind.

Speaker Change: Just want to understand the gross margin dynamics.

Alberto: If you go to page 31.

Alberto: You actually see an improvement of gross margin by roughly about 100 basis points versus 2023.

Speaker Change: Question, Rahul I believe mentioned.

Rahul Srinivasan: Significant impact from FX on net debt.

Alberto: Driven by lower plasma costs.

Rahul Srinivasan: I believe from September to December the dollar appreciated by 5% so could.

Alberto: Most of that margin improvement actually coming from Biopharma by I think about up about 170 basis points or so.

Speaker Change: Could you quantify the impact because when I tried to reconciliate.

Rahul Srinivasan: Net debt evolution compared to the <unk>.

Alberto: And drivers are lower plasma costs U S CPL down quite nicely.

Speaker Change: 333 million free cash flow you provided.

Speaker Change: In Q4, I used to make that an impact of roughly 300 million, which to me would seem too much for the FX impact. So if you could clarify that.

Alberto: Higher volume and revenues, which is always helpful. And then we had we had some neck.

Alberto: Negative effects going the other way one other thing that I would also say is that.

Speaker Change: It would be very helpful.

Alberto: Yes.

Speaker Change: I will jump back.

Alberto: Made reference to the change in fee for services.

Speaker Change: Follow up questions. Thank you.

Alberto: And in a GPO that also has a negative impact on gross margin by roughly about <unk>.

Speaker Change: Sure. So your question on gross margin.

So if you go to page 31.

Alberto: 60 to 80 basis points as well so in reality it could be higher than that so that's the question on gross margin your question related to the translation impact.

Speaker Change: If you go to page 31, you actually see an improvement of gross margin by roughly about 100 basis points versus 2023.

Alberto: Impact as you know we've got.

Speaker Change: Driven by lower plasma costs.

Alberto: We've got.

Speaker Change: Most of that margin improvement actually coming from Biopharma by I think about it.

Alberto: A reasonable portion of our debt is denominated in U S dollars. So a significant strengthening of the dollar creates a translation impact.

Speaker Change: About 170 basis points or so.

Speaker Change: And drivers are lower plasma costs U S CPL down quite nicely.

Alberto: And if it's a rapid one in this case it actually creates a re leveraging impact because ordinarily.

Speaker Change: Higher volume and revenues, which is always helpful. And then we had we had some.

Alberto: A strengthening of the dollar is actually deleveraging because of the significantly improved impact at the EBITDA level.

Speaker Change: Negative effects going the other way one other thing that I would also say is that.

Speaker Change: I made reference to the change in fee for services and a GPO that also has a negative impact on gross margin by roughly about 60 to 80 basis points as well so in reality it could be higher than that so that's the question on <unk>.

Alberto: So in terms of quantifying as I mentioned to you.

Alberto: If it wasn't for that strengthening we would be between four four and four five times. So just inside the four five times guidance will be provided previously.

Speaker Change: On gross margin your question related to the translation.

Alberto: Thank you.

Alberto: Okay.

Alberto: Thank you have a lot of replacing these two questions now I would like to get James Gordon from keeping Morgan.

Speaker Change: Impact as you know we've got.

Speaker Change: We've got.

Speaker Change: A reasonable portion of our debt is denominated in U S dollars. So a significant strengthening of the dollar creates a translation impact.

Alberto: Yeah.

James Gordon: Hello, James Gordon Jpmorgan, Thanks for taking my two questions.

James Gordon: Last one just quick cash flow generation as you mentioned it is a.

Speaker Change: And if it's a rapid one in this case it actually creates a re leveraging impact because ordinarily.

James Gordon: I'll hop back in this quarter and certainly in Q4, but in terms of phasing. So it is working capital have you made quite a lot of near term progress already there or do you think that there's still quite a lot more to be done near term.

A strengthening of the dollar is actually deleveraging because of the significantly improved impact of EBITDA level.

James Gordon: Disconnected without the extraordinary growth capex with any 20 million this quarter.

Speaker Change: So in terms of quantifying as I mentioned to you.

James Gordon: Is that helpful phasing benefit, but it just means you're going to have more still to come next year, well actually you were doing a bit less extraordinary capex. So how much extraordinary capex is still out there and how much have you been through.

Speaker Change: If it wasn't for that are strengthening we would be between four four and four five times. So just inside the four five times guidance will be provided previously.

James Gordon: And then the second question.

Speaker Change: Thank you.

James Gordon: With some useful comments about gross margin.

Yeah.

Eduardo: Thank you Eduardo for replacing these two questions now I would like to get James Gordon from Jpmorgan.

James Gordon: One question I thought about when the company says about what parents can do.

James Gordon: So in terms of talent.

James Gordon: Looks like a 25% tariff on part of that comes in from Europe, and U S. I used to doing quite a lot fractionation in Barcelona, and then that product imports into the U S.

Speaker Change: Okay.

Speaker Change: Hello, James Gordon Jpmorgan, Thanks for taking my two questions.

Speaker Change: Well, that's always just free cash flow generation as you mentioned it is a.

James Gordon: How would that works with the rest of 25% tariff or anything that comes in both later in the U S. How much of the U S.

Speaker Change: A lot better this quarter. So it's probably in Q4, but in terms of phasing. So it is working capital have you made quite a lot of near term progress already there or do you think there's still quite a lot more to be done near term.

James Gordon: Okay.

James Gordon: I'll take the <unk> one in under a hold comment on the free cash flow and an extra ordinary capex on the tariff obviously, we the situation right now all over the World I would say I would call it fluid and moving so I think we have to be.

Speaker Change: Disconnected without the extraordinary growth capex with any 20 million this quarter.

Speaker Change: So is that helpful phasing benefit, but it just means you're going to have more still to come next year, well actually you were doing a bit less extraordinary capex.

Speaker Change: How much extraordinary capex is still out there and how much have you been through.

James Gordon: We have to be prepared and we are so I think our our company situation. In this front is is quite safe from the point of view that we have a large fractionation capacity in the United States and that we collect most of our plasma from the United States too.

Speaker Change: And then the second question.

Speaker Change: There was some useful comments about gross margin, but one question I had about many companies it's about what parents can do.

Speaker Change: So we intend to tell us if there is it looks like you know.

25% tariff on part of that comes in from Europe, and U S. I used to doing quiet fractionation in Barcelona, and then that product imports into the U S.

James Gordon: So, yes, we still have some fractionation or significant fractionation in Barcelona, but definitely.

Speaker Change: How would that works if there is a 25% tariff, but anything that comes in both later in the U S. How much of your U S out that impact.

James Gordon: If if the tariff with become in place I mean, we might need to make some adjustment to the supply chain, but we are in a position to do it because of our capacity in the United States, both for our plasma generation and on and from our fractionation capacity. So we are good in a in that front as part of your second question or your first question Rahul will come in.

Speaker Change: Yeah.

Speaker Change: I'll take the third one and under a hold comment on the free cash flow on an extraordinary capex on the tariff obviously, we the situation right now all over the World I would say I would call it fluid and moving so I think we have to be we have to be prepared and we are so I think our hour.

James Gordon: No.

James Gordon: Thanks, not sure.

Speaker Change: Your question about extraordinary growth Capex, if you go to page 18.

Speaker Change: Companys situation in this front is is quite safe from the point of view that we have a large fractionation capacity in the United States and we collect most of our plasma from the United States too. So yeah. So we still have some fractionation or significant fractionation in Barcelona, but by definitive.

James Gordon: James.

James Gordon: St.

James Gordon: What youll see is that for the full year, we ended up with extraordinary growth capex of $2 $76 million and on a Q3 call I believe I had guided to $280 million. So the phasing is entirely as we expected.

Speaker Change: <unk>.

James Gordon: With respect to your question around inventory and fee free cash flow and more to go.

Speaker Change: If it was a dog.

Speaker Change: If we to become in place I mean, we might need to make some adjustment to the supply chain, but we are in a position to do it because of our capacity in the United States both for our plasma generation from our fractionation capacity. So we are good in that front as part of your second question or your first question Rahul will come in.

James Gordon: As I mentioned in.

James Gordon: Earlier in my piece.

James Gordon: There are a number of structural reasons why 2024 was very positive for us and I touched on all of those.

James Gordon: I think it was on slide 17 and 18.

Speaker Change: Okay.

James Gordon: And I also reiterated our expectation that we will begin to invest in.

Speaker Change: Yeah.

Speaker Change: Thanks, not sure.

Speaker Change: Your question about extraordinary growth Capex. So if you go to page 18.

James Gordon: In networking capital and inventory from 2025, and I will touch on that in more detail at our capital markets Day Tomorrow.

Speaker Change: James.

St.

Speaker Change: What youll see is that for the full year, we ended up with extraordinary growth capex of $2 $76 million and on our Q3 call I believe I had guided to $280 million. So the phasing is entirely as we expected.

Jaime: Thank you very much micha. Thank you Rahul now lets move to Santander Jaime Your total please.

James Gordon: Yeah.

James Gordon: Hi, good afternoon. So a couple of questions from my side and you tell us how is the donor fee evolving on whatever their needs are there.

Speaker Change: With respect to your question around inventory and fee free cash flow and more to go as I mentioned in.

Speaker Change: <unk>.

James Gordon: Downside potential there and also maybe you can comment on.

Speaker Change: Earlier in my piece.

Speaker Change: There are a number of structural reasons why 2024 was very positive for us and I touched on all of those.

James Gordon: How is the plasma collection growing what is the strategy here.

James Gordon: To grow more in line with Exane.

Speaker Change: I think it was on slide 17 and 18.

James Gordon: Accumulate and connect more and have more inventories.

Speaker Change: And I also reiterated our expectation that we will begin to invest in networking capital and inventory from 2025, and I will touch on that in more detail at our capital markets Day Tomorrow.

James Gordon: Maybe a final one if I may.

Speaker Change: Petition from <unk> B organics.

James Gordon: What are the dynamics you are seeing in the market. Thank you very much.

James Gordon: Thanks for having me.

Speaker Change: Yeah.

Speaker Change: I'll take the first the comments on the plasma and are now rolling will elaborate on this.

Speaker Change: Thank you very much micha. Thank you Rahul now, let's move to <unk>.

Speaker Change: Jaime your total please.

James Gordon: I mean, the donor fees.

Speaker Change: Oh.

Speaker Change: Hi, good afternoon. So a couple of questions from my side and could you tell us how is the donor fee evolving on whether there is are there.

James Gordon: As a matter that has become quite complex and.

James Gordon: Dynamic over over time I think that.

James Gordon: There is more and more.

Mark: As Mark Compensations.

Mark: Methodologies being applied which represent a win win for the owners and the company and I think that it's the evolution is a is not a linear evolution anymore and I think that we could see situations, where we're and that's our goal that we can offer.

Speaker Change: Downside potential there and also maybe you can comment on.

Speaker Change: How is the plasma collection growing what is the strategy here.

Speaker Change: To grow more in line with the saying so.

Speaker Change: Accumulate and connect more and have more inventories.

Speaker Change: Maybe a final one if I may and competition from C. H E B.

Mark: Good.

Mark: Proposition to their owners wireless there'll be inefficient in the utilization of our donor centers in these answers partially the your second question right from our plasma collection point of view.

Thanks.

Speaker Change: What are the dynamics you are seeing in the market. Thank you very much.

Speaker Change: Yeah.

Jaime: Thanks Jaime.

Jaime: I'll take the first the comments on the plasma and are now rolling will elaborate on the C. A R.

Our donor centers.

Mark: As for the coming years as I mentioned before we don't see an expansion in donor centers because our installed base is sufficient.

Jaime: I mean, the doughnuts piece.

Jaime: As a monitor that has become quite complex and.

Mark: We have significant capacity still in the existing donor center. So our focus is going to be at war with the doughnuts to incentivize well the donuts and increase the plasma collection in the existing centers and we have that capacity and indefinitely.

Jaime: Now, let me cover overtime I think that there is more and more.

Mark: As Mark Compensations.

Mark: Methodology was being applied which represent a win win for the owners.

Mark: Company and I think that it said the evolution is.

Mark: It will come without any requirement for four significant capex in this area at least in the next three years.

Mark: Is a is not a linear evolution anymore and I think that we could see situations where were and thats. Our goal that we can offer.

Mark: As part of the ADP Rolling will command.

Yes for <unk>, we have seen some use of of the CRM blocker. Most in second line patients for for the few patients that do not tolerate or respond to IV.

Mark: Good good.

Mark: Proposition to give the owners, while it's still being efficient in the utilization of our donor centers in these onshore it's partially the your second question right from our plasma collection point of view.

Mark: But the important to note that we have not seen any impact on the momentum on our side when it comes to see ADP and in fact, you know us as in OCI ADP is a disease that still remains on diagnosed and where we are.

Mark: Our donor centers.

Mark: As for the coming years as I mentioned before we don't see an expansion in donor centers.

Mark: Our installed base is sufficient.

Mark: Now we have significant capacity are still in the existing donor centers. So our focus is going to be at war with the doughnuts to incentivize welded donuts and increase the plasma collection in the existing centers and we have that capacity.

Mark: See that's increasing awareness is helping us to treat more patients. It is a disease that is multi factorial, which means that a range of mechanisms play a role and it's a disease, where <unk> with its ability to actually.

Mark: Lee.

All of these different mechanisms.

Mark: It will come without any requirement for four significant capex in this already at least in the next three years.

Mark: Remains and is the first line treatment and this is what we hear back from fault leaders. So to summarize yes, some uptake no impact on our momentum and we remain very confident in the role as first line treatment of idea moving forward.

Mark: I suppose he ADP rolling will commit.

Speaker Change: Yes, we're see IDP, we have seen some use of of the CRM blocker. Most in second line patients for for the few patients that do not tolerate or respond to IV.

Speaker Change: Thank you Barry you might be rolling medical you think youre not true.

Speaker Change: But important to note that we have not seen any impact on the momentum on our side when it comes to see ADP and in fact, you know US as you know see IDP is a disease that still remains on diagnosed and where we.

Speaker Change: And then thank you Jaime now I would like to hear from you from Kashagan Guillermo Please.

Guillermo: Hello. Thank you for taking my question. So the first one still on gross margin you mentioned <unk> impact there.

Speaker Change: See that's increasing awareness is helping us to treat more patients. It is a disease that is multifactorial, which means that.

Speaker Change: Gross margin due to the difference in the county.

Guillermo: If you could clarify.

Speaker Change: A range of mechanisms play a role and it's a disease, where <unk> with its ability to actually.

Guillermo: For the full year.

Guillermo: So and then.

Guillermo: If you could provide the the figure specifically for Q4, I guess I have a compatibility with Q3 margin.

Speaker Change: Attack all of these different mechanisms <unk>.

Guillermo: And then related to that also.

<unk> remains and is the first time treatment and this is what we hear back from fault leaders. So to summarize yes, some uptake no impact on our momentum and we remain very confident in the role as first line treatment of Ibs cheap going forward.

Guillermo: If you have any ballpark figure on what level of costs related to decline in June 2000, <unk> peak is already reflected in margins gross.

Guillermo: Gross margin and then if you could provide a bit more detail on the drivers of growth slowdown this quarter would be great. Thank you.

Speaker Change: Okay.

Barry Rubin: Thank you Barry you Might've Rubin medical you think youre not true.

Speaker Change: Thank you Jaime now I would like to hear from you make some keshava Guillermo please.

Guillermo: So on gross margin.

Guillermo: The impact we're talking about is roughly $50 million.

Speaker Change: Hello. Thank you for taking my question. So the first question on gross margin you mentioned <unk> impact in terms of gross margin due to the difference in the county.

Guillermo: And in essentially all that does is it reduces.

Guillermo: It reduces your net revenues.

By by that amount and it reduces opex or no impact in EBITDA and the impact on gross margin is is somewhat indirect as a result, as well right. So that's how you get to those numbers. So hopefully that addresses the first point. Your second question was on.

Speaker Change: If you could clarify if this is.

Speaker Change: For the full year.

Speaker Change: So and then.

Speaker Change: If you could provide the figures, particularly for Q4.

Speaker Change: In comparison with Q3 margin.

Speaker Change: And then related to that also.

Speaker Change: If you have any ballpark figure on what level of costs related to the client.

Speaker Change: Yeah cost per liter look I don't think we're where we provide.

Speaker Change: June 'twenty two peak is already reflected in margins gross.

Speaker Change: Views on pricing of that cost per liter evolution suffice it to say that it continues to be a very healthy trend and we continue to feel pretty encouraged about where we can take that cost per liter and create a win win situation that Nacho mentioned earlier on and so we still feel very encouraged.

Speaker Change: Gross margin and then if you could provide a bit more detail on the drivers of growth slowdown this quarter would be great. Thank you.

Speaker Change: So on gross margin.

Speaker Change: The impact we're talking about is roughly $50 million.

Speaker Change: About that on albumin Roland.

And in essentially all that does is it reduces your it reduces your net revenues.

Speaker Change: And looking at all of them in our Q4 in terms of volume was actually our highest quarter of this year. So this is just a year over year comparison with a very strong Q4 that we had last year.

Speaker Change: By by that amount and it reduces opex so no impact in EBITDA and the impact on gross margin is is somewhat indirect as a result, as well right. So that's how you get to those numbers. So hopefully that addresses the first point. Your second question was on.

Speaker Change: Okay.

Speaker Change: Thank you Roland.

Speaker Change: Thank you hear me now I would like to get from Charles Pitman Barclays. Charles Please.

Speaker Change: Yeah.

Speaker Change: Cost per lead to look I don't think we're where we provide.

Speaker Change: Hi, Thank you very much for taking my questions.

Speaker Change: Just one quick.

Speaker Change: Clarification and I apologize. If this is a simple question, but just on the reclassification of the change of treatment of fee for services can you just give us a little bit more detail around what drove this change like what does this mean for your old recorded sales Cogs and SG&A and why if this was an industry standard.

Roland Vandeler: About that I will now been Roland.

Speaker Change: All of your prior reporting.

Speaker Change: And then just secondly, within the kind of <unk> mix and.

Roland Vandeler: And looking at all we mean, our Q4 in terms of volume was actually our highest quarter. This year. So this is just a year over year comparison with a very strong Q4 that we had last year.

Speaker Change: And how you've been performing over the course of this year I'm wondering if you can just give us a little bit more detail on what it is you're doing to continue to grow share.

Roland Vandeler: Okay.

Speaker Change: And maybe if you could just touch a little bit more on looking at Cie D. P relative threatening youll thing I understand that's more second line, but given Zombify is I believe not approved to see ADP and this is a kind of sub cut to hook up maintenance in second line is there an element here that actually.

Roland Vandeler: Thank you Roland.

Speaker Change: Hey, Thank you hear me now I would like to get from Charles Pitman Barclays. Charles Please.

Roland Vandeler: Okay.

Roland Vandeler: Hi, Thank you very much for taking my questions and just one quick kind of.

Speaker Change: <unk> treatment is a little bit more shielded from this new competition about yesterday.

Roland Vandeler: Clarification and I apologize if this is a simple.

Roland Vandeler: But just on the reclassification of the change of treatment of fee for services can you just give us a little bit more detail around what kind of drove this change like what does this mean for your old recorded sales Cogs and SG&A and why if this was an industry standard.

Speaker Change: Thank you very much.

Speaker Change: Yeah.

Roland: Sure Let me take the first one and Roland will finish the part.

Speaker Change: Part of that first question before addressing the second one.

Roland: So.

Roland Vandeler: All of your prior reporting.

Roland: It relates to fee for services and GPO fees and one of the things that are.

Roland Vandeler: And then just secondly, within the kind of <unk> mix.

Roland: No I was trying to do when I got in in Q4 was essentially try and do a detailed benchmarking and understand essentially what are the upsides and downsides where across the business and one of the things that came out of that exercise and these are not big numbers one of the things that came out of that exercise was that.

Roland Vandeler: And how you've been performing of course with yeah. I'm wondering if you can just give us a little bit more detail on what it is you're doing to continue to grow share.

Roland Vandeler: And maybe if you could just touch a little bit more of a kind of see IDP relative threatening youll thing I understand that's more second line, but given then the fires I believe not approved to see IDP and this is a kind of sub sub cup maintenance in second line is there an element here that actually referrals.

Roland: We were.

Roland: Putting through Opex these fees when a number of our competitors.

Roland: Put it out as.

Roland: As a as a reduction of sales it's not a positive change in some respects, but it is a more realistic change why do I say it is not positive because it actually impacts our growth rates quarter on quarter going forward, but what I wanted to try and do is understand release.

Roland Vandeler: <unk> treatment is a little bit more shielded from this new competition about yesterday.

Roland Vandeler: Thank you very much.

Roland Vandeler: Yeah.

Roland Vandeler: Sure let me take the first one.

Roland Vandeler: And Roland will finish the part B part of that first question before addressing the second one.

Roland: You know there is there further upside on the Opex as a percentage of sales and this came out of that analysis. So relatively simple in terms of what it exactly is.

Roland Vandeler: So.

Roland Vandeler: It relates to fee for services and GPO fees and one of the things that.

Roland: Roland will touch on that in terms of fee for service is in GPO is before addressing the second question Roland.

Roland Vandeler: I was trying to do when I got in in Q4 was essentially try and do a detailed benchmarking and understand essentially what are the upsides and downsides where across the business and one of the things that came out of that exercise and these are not big numbers one of the things that came out of that exercise was that.

Roland: Yes, not much drop it's just a general fee for services that you have in the U S and the GPO group purchasing organization fees that in the past we classify it as Opex. That's just now going into the gross to net and I think it's the standard as you say roll throughout the industry.

Roland Vandeler: We were.

Roland Vandeler: Putting through Opex these fees when a number of our competitors.

Roland: Going to your questions around the south Q. It yes, we are absolutely excited with the momentum that we see.

Roland Vandeler: Put it out as a as as as as a reduction of sales, it's not a positive change in some respects, but it is a more realistic change why do I say it is not positive because it actually impacts our growth rates quarter on quarter going forward, but what I wanted to try and do is understand release or there is that further upside on the <unk>.

Roland: Very much so in the U S and you're right our our indication at this stage is in primary immune deficiency, we see that our brand is highly valued there by prescribers, we see that our messaging is resonating very well and we are investing obviously with our efforts on the commercial side to continue that momentum in parallel in the U S.

Roland Vandeler: Opex as a percentage of sales and this came out of that analysis. So relatively simple in terms of what it exactly is.

Roland: As you know, we're advancing our study to get to the city of indication for exemplify as well, which will position us for growth in Europe. We are still in an early stage of launching quantify and we have a number of upcoming launches.

Roland Vandeler: Roland will touch on that in terms of fee for services and GPO is before addressing the second question.

Roland Vandeler: Yeah.

Roland Vandeler: Yes, not much drop it's just a general fee for services that you have in the U S.

Roland: We will further expand our footprint there and then lastly on see IDP, yes, correct in the U S. We don't.

Roland Vandeler: The cheap Youll group purchasing organization of fees that in the past we classify it as Opex, that's just not going into the gross to net and I think it just sounds as you say roll throughout the industry going your questions around the soft Q I T. Yes, we are absolutely excited with the momentum that we see.

Roland: Promote twenty-five foresee IDP and from that I guess, you could argue that the ped part of course would not be impacted but I think beyond that it's just important to highlight that we have a lot of confidence on the first line roll off.

Roland Vandeler: Very much so in the U S and you're right our our indication at this stage. It's in primary immune deficiency, we see that our brand is highly valued there by prescribers, we see that our messaging is resonating very well and we are investing obviously with our efforts on the commercial side to continue that momentum in parallel in the U.

Roland: In general in CIP with growth potential beyond.

Roland: Yeah.

Speaker Change: Okay. Thank you so much Roland will have a couple of follow up first from Alantra. Our two please.

Hi.

Roland Vandeler: We are advancing our study to get to see ICP indication for <unk>, as well, which will position us for growth in Europe. We are still in an early stage of launching 75, and we have a number of upcoming launches that will further expand our footprint there and then lastly on see IDP.

Speaker Change: Allow me to jump again.

Speaker Change: You could provide some detail on the <unk> dynamics, because if I'm not mistaken I saw on the on the CMS data that Medicare and Medicaid was paying a little bit of a lower price than it had in previous quarters, So unsurprisingly exploration and revenues.

Speaker Change: This is due to mix the higher growth on Xiaomi fine. So maybe if you could provide some of the dynamics there are some volumes and price within the we've seen we've seen and then my second question would be on taxes, which were very high on Q4, I don't know you if you.

Roland Vandeler: Yes, correct in the U S.

Roland Vandeler: Promote 75 for C IDP and from that I guess, you could argue that the E. Part of course will not be impacted but I think beyond that it's just important to highlight that we have a lot of confidence on the first line roll off treatment in general in CIP with growth potential beyond.

Speaker Change: You explained that doesn't really on your prepared remarks, I'm, sorry, if I missed it. Thank you.

Speaker Change: Yeah.

Roland Vandeler: Okay.

Speaker Change: Yes.

Speaker Change: Okay. Thank you so much at all and we have a couple of follow up first from Alantra. Please.

Speaker Change: Okay.

Speaker Change: The main driver for our growth is coming from volume no doubt as you may call recall in the U S side.

Roland Vandeler: Yeah.

Speaker Change: Hi, Thanks for allowing me to jump again.

Speaker Change: At the end of last year, we said that we will be adjusting our price strategy to compete effectively we've been doing that and indeed, when you look at the increasing share of Sop to it and it's premium price that is of course offsetting that trend and if you look at Europe over the last years, we took.

Speaker Change: If you could provide some detail on the <unk> dynamics because.

Speaker Change: I know, what you're thinking that show on the on the CMS data that.

Speaker Change: Medicare and Medicaid was Spain.

Speaker Change: If a lower price than any time in previous quarters. So I'm sure Brian simply exploration in revenues right I don't know whether this is due to mix the hydrophone shouldn't be fine. So maybe if you could provide some of the dynamics. There are some volumes in price between the we've seen we've seen it and then my second question would be on taxes, which were very high on.

Speaker Change: With the rest of the industry have been able to increase prices.

Speaker Change: With the supply constraints are there during the Covid time, and so yes, we have over the last years, if you look at it being able to do.

Speaker Change: Q4, I don't know you.

Speaker Change: Could you explain that doesn't really on your prepared remarks, I'm sorry, if I missed it. Thank you.

Speaker Change: Rest of world side to bring prices up.

Speaker Change: Okay.

Speaker Change: And that really relating to your question around taxes. So if I go to page.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: The main driver for our growth is coming from volume no doubt as you may call recall in the U S side.

Speaker Change: 31 of the presentation.

Speaker Change: What you'll see is as you rightly point out you are effective.

Speaker Change: At the end of last year, we said that we will be adjusting our price strategy to compete effectively we've been doing that and indeed, when you look at the increasing share of Sop to Ikea in its premium price that is of course offsetting that trend.

Speaker Change: Tax.

Speaker Change: 52% on a pre tax income.

Speaker Change: And.

Speaker Change: If you adjust for some of the one offs, you'll get to a more normalized view around 26%. So as you rightly ask what is what explains that difference.

Speaker Change: And if you look at Europe over the last years, we together with the rest of the industry have been able to increase prices.

Speaker Change: Two principal things.

Speaker Change: That I would call out.

Speaker Change: One is.

Speaker Change: With the supply constraints are there during the Covid time.

Speaker Change: We are we've got an exception relating to a tax audit in Spain.

Speaker Change: And so yes, we have over the last years, if you look at it being able to do on the rest of world site to bring prices up.

Speaker Change: You'll see more details of that in note 28, I think its page 95 in the AR.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: And the English version of the accounts.

Speaker Change: But really relating to your question around taxes. So if I go to page <unk>.

Speaker Change: Which which.

Speaker Change: And the simple thing there is we operate in four jurisdictions and frankly, we can only paid or we should only pay tax in and not be duplicative and so this relates to a tax audit. It will take a number of years to work through that and Thats the exceptional.

Speaker Change: Every one of the presentation.

Speaker Change: <unk>.

Speaker Change: What youll see is as you rightly point out you are effective.

Speaker Change: Tax or 52% on a pre tax income.

Speaker Change: And.

Speaker Change: And then the other aspect on the tax.

Speaker Change: If you adjust for some of the one offs, you'll get to a more normalized view around 26%. So as you rightfully ask what is what explains that difference.

Speaker Change: <unk> a level of tax.

Speaker Change: Rates to the exceptional is related to taxes paid on the Shanghai, RASK consideration, which was disclosed earlier in the year as well so those two things.

Speaker Change: Two principal things.

Speaker Change: What I would call out.

Speaker Change: One is.

Speaker Change: Frankly explain the elevated levels, but what I would what I would really look at and I'll talk about taxes a bit further tomorrow in terms of the in terms of the.

We are we've got an exception relating to a tax audit in Spain.

Speaker Change: And you'll see more details of that in note 28.

Think it's page 95 in the <unk>.

Our go forward tax rate I think that 26%, 26% to 27% is the appropriate sort of ballpark and I look forward basis.

Speaker Change: In the English version of the accounts.

Speaker Change: Which which.

Speaker Change: And the simple thing there is we operate in four jurisdictions and frankly, we can only paid or we.

Speaker Change: Thank you.

Rahul: Thank you Rahul.

Rahul: The second follow up just drop so that was the last question. The last answer just to say thank you. So much for your support for being here looking forward to see you tomorrow. Thank you so much.

Speaker Change: Should only pay tax and and then not be duplicative and so this relates to a tax holiday. It will take a number of years to work through that and Thats the exceptional.

Speaker Change: And then the other aspect from the tax elevated level of tax it relates to the exceptional is related to taxes paid on the Shanghai RASK consideration, which was disclosed earlier in the year as well so those two things.

Speaker Change: Frankly explain the elevated levels, but what I would what I would really look at it and I'll talk about taxes a bit further tomorrow.

Speaker Change: In terms of fee in terms of the.

Speaker Change: Go forward tax rates, I think that 26%, 26% to 27% is the appropriate sort of ballpark and I look forward basis.

Speaker Change: Thank you.

Rahul Srinivasan: Thank you Rahul.

Rahul Srinivasan: The second follow up just so that was the last question the last one just.

Speaker Change: Just to say thank you so much for your support for being here looking forward to see you tomorrow. Thank you so much.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Deferred.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: Sure.

Rahul Srinivasan: Deborah.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: No.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: Got it.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Academic.

Rahul Srinivasan: The.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Gordon.

Rahul Srinivasan: Hmm.

Rahul Srinivasan: Right.

Rahul Srinivasan: Thanks.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Hello.

Rahul Srinivasan: Okay.

Rahul Srinivasan: [noise].

Rahul Srinivasan: Good.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Great.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Rahul Srinivasan: And then.

Rahul Srinivasan: The only thing.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Alright.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Mhm.

Rahul Srinivasan: Okay.

Rahul Srinivasan: No.

Rahul Srinivasan: Thank you.

Rahul Srinivasan: Okay.

Hum.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Sure.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Thanks.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Hello.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: Okay.

Okay.

Rahul Srinivasan: Okay.

Rahul Srinivasan: [music].

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: Okay.

Rahul Srinivasan: [noise].

Rahul Srinivasan: Okay.

Rahul Srinivasan: [music].

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yeah.

Rahul Srinivasan: [noise].

Rahul Srinivasan: Okay.

Rahul Srinivasan: Yes.

Yeah.

Rahul Srinivasan: Okay.

Rahul Srinivasan: Thank you.

Rahul Srinivasan: Okay.

Rahul Srinivasan: No.

Rahul Srinivasan: Matt.

Rahul Srinivasan: [music].

Rahul Srinivasan: Okay.

Rahul Srinivasan: [music].

Rahul Srinivasan: Thank you.

Rahul Srinivasan: Okay.

Rahul Srinivasan: [music].

Rahul Srinivasan: Yes.

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