Q1 2025 Grifols SA Earnings Call

Hello, everyone. My name is Danny Sahara, and I serve as the head of Investor Relations interesting Ritchie and makes presented grateful.

Daniel Segarra: My name is Daniel Segarra and I serve as the Head of Investor Relations and Sustainability and Vice President at Grifols.

Daniel Segarra: Welcome to our review of the company's business results for the first quarter of 2025.

Welcome to a review of the Companys business results for the first quarter of 2025.

Daniel Segarra: Today I'm joined by Grifols Executive, Chief Executive Officer, Nacho Abia, Chief Financial Officer, Rahul Srinivasan, and the President of Biopharma, Roland Wandeler. A few logistics before we get into details. Today's call will last about an hour, including a Q&A session.

Speaker Change: Today I'm joined to make resource Executive Chief Executive Officer match, Avia, Chief Financial Officer, Rahul is renovation and the president of Biopharma Rolen vandalism.

Logistics before we get into the tails.

Speaker Change: Today's call will last about an hour, including the Q&A session.

Daniel Segarra: As a reminder, this call is being recorded. You can find additional materials, including today's presentation, in the Investor Relations section of the Grifols website at grifols.com. The transcript and a replay of the webcast will also be available on the Investor Relations website within 24 hours.

Speaker Change: As a reminder, this call is being recorded.

Speaker Change: You can find additional materials, including today's presentation in the Investor Relations section of the Greenfields website at Greif Com.

Speaker Change: The transcript and a replay of the wet gas wells will also be available on the investor relation website within 24 hours.

Daniel Segarra: Turning to slide 2, please note that this presentation includes forward-looking statements regarding, among other things, the company's future operating and financial performance, market position, and business strategy. These statements are based on current expectations and available information as of the date of the recording, and they are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected.

Speaker Change: Turning to slide two please note that this presentation includes forward looking statements regarding among other things the company's future operating and financial performance market position and the businesses and business strategy.

Speaker Change: These statements are based on current expectations and available information.

Speaker Change: The date of the recording and they are subject to certain risks and uncertainties that may close.

Speaker Change: Drill results to differ materially from those projected.

Daniel Segarra: Grifols financial statements are prepared in accordance with EU, IFRS and other applicable reporting provisions, including Alternative Performance Measures, or APMs, prepared under the Group's financial reporting model as defined by the European Securities and Markets Authority. Please note that Grifols Management uses APMs to evaluate financial performance. cash flows and overall financial position as the basis for operational and strategic decision-making. These APMs are prepared for all time periods presented in this document.

Speaker Change: Before financial statements are prepared in accordance with EU forest, another applicable reporting provisions, including alternative performance measures or a P. EMS prepared under the group's financial reporting model is defined by the European Securities market to a 36.

Please note that Greenfield management uses a P M to evaluate financial performance cash flows and overall financial position as the basis for operational and strategic decision making.

Speaker Change: These Atms had prepared for all time periods presented in this tuck them in.

Nacho Abia: Now moving to today's agenda, Nacho will start with some introductory remarks followed by a discussion of our business performance and strategic execution.

Speaker Change: Now moving to today's agenda not sure we'll start with some introductory remarks, followed by a discussion of our business performance and our strategic execution.

Rahul Srinivasan: Then Rahul will review the financial results for Q1 2025.

Speaker Change: Then Rahul will review the financial results for Q1 2025.

Nacho Abia: After Rahul's presentation, we will return to Nacho for his closing comments.

Speaker Change: The Rockwell <unk> presentation, we will return to <unk> for his closing comments.

Roland Wandeler: Roland will be joining us for Q&A.

Speaker Change: Alan.

Speaker Change: He'll be joining us for Q&A.

Nacho Abia: With that, I will now turn the call over to Nacho. Thank you, Danny, and thank you, everyone, for joining us. Building on the all-time high in 2024, we are pleased to report a strong start to 2024. The first quarter saw encouraging increases in revenue, EBITDA, and free cash. This performance reflects the fundamentals of our business and the continued execution of our strategic plan. We recognize that this growth is particularly noteworthy given the anticipated impact of the Inflation Reduction Act, IRA, and the global uncertainties we all are navigating. Despite these factors, our Q1 results across the board are ahead of our plan and, importantly, provide a solid foundation for continued progress throughout the year.

Nurture Gotcha: With that I will now turn the call over to nurture gotcha.

Nurture Gotcha: Thank you Tony and thank you everyone for joining us today.

Nurture Gotcha: Building on the all time high in 'twenty 'twenty four we're pleased to report our strongest start to 2025.

Nurture Gotcha: The first quarter, so encouraging increases in revenue EBITDA and free cash flow.

Nurture Gotcha: This performance reflects the fundamentals of our business and the continued execution of our restaurant <unk> plan.

Nurture Gotcha: Where we recognize that this growth is particularly noteworthy given the anticipated impact of the inflection redaction app.

Nurture Gotcha: And the global answer tightens, we are navigating the.

Nurture Gotcha: Despite these factors our Q1 resource across the board are ahead of our plan and importantly provide a solid foundation for continued progress throughout the year.

Nacho Abia: Although the first quarter has traditionally been our softest, our Q1 performance reinforces our confidence that we will continue to see steady improvements over the course of 2025, similar to the pattern we observed last year. I will walk you through these drivers in the next slides to give you more clarity about how we plan to achieve them. Before we delve into the details of the quarter, I would like to briefly highlight that in recent weeks we have been closely monitoring the increasing microeconomic and policy development that is affecting all market participants. While we strongly believe we are well prepared to navigate these dynamic market conditions without meaningful impact, we remain vigilant and continue to carefully evaluate the situation.

Nurture Gotcha: Although the first quarter has traditionally been our softest, our Q1 performance reinforces our confidence that we will continue to see steady improvements over the course of 2025 similar to the pattern we observed last year.

Nurture Gotcha: I will walk you through these drivers in the next slides to give you more clarity about how we plan to achieve it.

Nurture Gotcha: Before we delve into the details of the quarter I would like to briefly highlight that in recent weeks, we have been closely monitoring the increase in microeconomic and policy development that is affecting all market participants.

Nurture Gotcha: Well, we strongly believe we are well prepared to navigate these dynamic market conditions without meaningful impact we remain vigilant and continue to carefully evaluate the situation well.

Nacho Abia: We will share as well more insights on this throughout the presentation. Ultimately, our focus remains firmly on executing our strategy, staying true to our mission and vision, and delivering on our performance goals. I want to express my sincere appreciation for the dedication of our teams across the globe. Their commitment to driving our strategy forward and serving donors and patients worldwide has been critical to our positive start to 2025.

Nurture Gotcha: We will share as well more insights on this throughout the presentations.

Nurture Gotcha: Ultimately our focus remains firmly on executing our strategy staying true to our mission ambition and delivering on our performance goals.

Nurture Gotcha: I want to express my sincere appreciation for their dedication of our teams across the globe their commitment to driving our strategy forward and serving donors and patients worldwide has been critical to a positive start to 2025.

Nacho Abia: With that, let's move to the first quarter results in slide five. Before I go through this slide, it is important to note that in order to provide the market with a clearer view of the underlying performance of Grifols, and biopharma in particular, we are presenting key financial metrics for this quarter and for the remainder of the year in two ways, reported and like for like. Like-for-like figures are adjusted to account for the impact of the IRA Part D redesign and the fee for service reclassification. As a reminder, in Q4 2024, we changed the treatment of our U.S.

Nurture Gotcha: With that let's move to the first quarter results in slide five.

Nurture Gotcha: Before I go through this slide it is important to note that in order to provide the market with a clearer view of the underlying performance of Greenfields in Biopharma. In particular, we are presenting key financial metrics for this quarter and for the remainder of the year in two ways reported and like for like.

Like for like figures are adjusted to account for the impact over the I R. A part of the redesign and the fee for service reclassification.

Nurture Gotcha: As a reminder, in Q4 'twenty 'twenty four we changed the treatment of our U S fee for service and G. P O fish.

Nacho Abia: Fee-for-Service and GPO fees. These fees are now accounted for in our gross-to-net sales rather than in OPEX, which has no impact on EBITDA. The full 2024 impact of this change was reflected in Q4 2024, and as a result, it distorts the biopharma revenue growth in our 2025 quarterly In Q1 of this year, the difference between our like-for-like and reported figures amounted to €43 million. Of this, €28 million was attributable to the IRA, in line with our forecast, while €15 million was related to the fee-for-service reclassification. Revenue in the quarter was a key highlight, reaching €1,786,000,000, a 7.4% increase on a constant currency basis.

Nurture Gotcha: These fees are now accounted for in our gross to net sales rather than in Opex, which has no impact on EBITDA.

Nurture Gotcha: The full 'twenty 'twenty four impact of this change were reflected in Q4, 24, 24 and as a result at the stores the Biopharma revenue growth in our 2025 quarterly results.

Nurture Gotcha: In Q1 of this year the difference between our like for like and reported figures amounted to 43 million Europes of this 28 million euros was attributable to the IAA in language, our forecast, while 50 million euros with related to the fee for service reclassification.

Nurture Gotcha: Revenue in the quarter was a key highlight reaching 1.786 billion a.

Nurture Gotcha: 7.4% increase on a constant currency basis.

Nacho Abia: On a like-for-like basis, revenue increased by 10%, showing a clear continuation of the positive revenue growth trend we saw in 2025. Adjusted EBITDA for the quarter reached 400 million euros, an improvement of 14.2% at cost and currency. Like for like, it grew by close to 22%. The IRA impact, along with some temporary phasing in Albumins and Rabbis, put some pressure on our gross margin and EBITDA in Q1 2025. Going forward, we remain confident of our continuous improvement of our margins throughout the year, following same pattern than in previous periods. Free cash flow for the quarter was negative 44 million euros, primarily due to the payment to Immunotech for 79 million euros, as previously discussed.

Nurture Gotcha: Like for like basis revenue increased by 10% showing a clear continuation of the positive revenue growth trend we saw in 2024.

Nurture Gotcha: Adjusted EBITDA for the quarter reached 400 million euros and improvements of 14.2% at constant currency like for like it grew by close to 22%.

Nurture Gotcha: The irony impact along with some temporary facing an album and send rabies put some pressure on our gross margin gross margin and EBITDA in Q1 25 going forward, we remain confidence of our continuous improvement of our margins throughout the year. Following the same pattern than in previous periods.

Nurture Gotcha: Free cash flow for the quarter. It was negative 44 million euros, primarily due to the payment to immuno take for 79 million euros as previously disclosed while free cash flow was negative this quarter, we achieved a year on year over improvement then more than 200 million euros.

Nacho Abia: While free cash flow was negative this quarter, we achieved a year-on-year over-improvement than more than 200 million euros. Considering our first-quarter performance, we see this as clear signals for continued upward momentum in top-line growth, profitability, and free cash flow generation, while we maintain our strong commitment to further deleveraging our balance . In terms of guidance, we are forecasting sustained revenue growth throughout the year, driven by our immunoglobulin franchise, with significant growth in the U.S. as well as outside the U.S. We expect our subcutaneous immunoglobulin to continue gaining traction and contributing to the product mix. Our revenue projections are also supported by the improved performance of rubbish and albumin, as the phase-in reporting in Q1 2025 will not carry into the subsequent quarter.

Nurture Gotcha: Considering our first quarter performance, we see these as clear signals for continued upward momentum in top line growth profitability and free cash flow generation, while we maintain our strong commitment to further deleveraging our balance sheet.

Nurture Gotcha: In terms of guidance, we are forecasting sustained revenue growth throughout the year dry driven by our immuno globally in fragrance franchise with significant growth in the U S as well as outside the U S.

Nurture Gotcha: We expect our subcutaneous immunoglobulin to continue gaining traction and contribution contribute into their product mix.

Nurture Gotcha: Revenue projections are also supported by the improved performance of <unk> and albumin as the face and reported in Q1 'twenty five will not carry into two basic went up quarters.

Nacho Abia: We also see our Alpha One franchise continuing to show positive momentum following a new Speciality Pharmacy Partnership in the United States. Equally important will be the contribution of lower cost of goods, as the cost per litre initiatives and the yield improvement efforts has been delivering and improving our inventory costs. Additionally, as revenue increases throughout the year, it will trigger a higher absorption of operating expenses, thus having a significant positive impact on our AVD.

Nurture Gotcha: We also see our alpha one franchise continuing to show positive momentum following our newest specialty pharmacy partnership in the United States.

Nurture Gotcha: Equally important will be the contribution of lower cost of goods as the cost per liter initiatives in the jail improvement Air force has been delivering and improving our inventory cost.

Nurture Gotcha: Additionally, our revenue increases throughout the year it will trigger a higher absorption of operating expenses that is having a significant positive impact on our EBITDA.

Nacho Abia: Finally, let me emphasize that this business momentum is not only reflected in the quarter's positive results, but also underpinned by increased plasma capabilities and efficiencies, along with the successful completion of key innovation milestones, including Fibrinogen, which we expect to launch in Q4-25 in Europe and in the first half of 2026 in the United States, following its 5th DA update.

Nurture Gotcha: Finally, let me emphasize that this business momentum is not only reflected in the quarter's positive results, but also underpinned by increased plasma capabilities and efficiencies along with the successful completion of key innovation milestone, including 500 million, which we expect to lounge in Q1, 'twenty Q4, 'twenty five in Europe and in the first half.

Nurture Gotcha: For 2026 in the United States following is for FDA approval.

Nacho Abia: With that, I will turn to the top line comments in the slides. Year-to-date revenue increased by 7.4% on a constant currency basis, driven by robust performance across all business units. Excluding the impact of the IRA and the reclassification of our fee-for-services, revenue grew by 10%. The sustained momentum was primarily fueled by biopharma, which like for like grew by 9.6% on a constant course. The immunoglobulin franchise continues to be the cornerstone of our growth strategy. Achieving 17.5% growth in revenue at cost and currency unlike This growth was led by IB and Sucutanios IG, as they will explain in a second.

Nurture Gotcha: With that I will turn to the top line comments in slide six.

Nurture Gotcha: During today's revenue increased by seven 4% on a constant currency basis, driven by robust performance across all business unit, excluding the impact of the a and the reclassification of our fee for services revenue grow by 10%.

Nurture Gotcha: Does it stay momentum was primarily fueled by Biopharma, which like for like grew by nine 6% on a constant currency.

Nurture Gotcha: The immunoglobulin franchise continues to be the cornerstone of our growth strategy.

Nurture Gotcha: Given 17.5% growth in revenue at constant currency on a like for like this growth was led by a b and so cutaneous AG I thought he will explain in a second.

Nacho Abia: Alpha One continued to improve in Q1, reversing the challenges faced in prior quarters when the company switched its U.S. Alpha One major. While Biopharma posted a strong overall performance, it was partially upset by some phasing in albumin and rabies. Albumin was impacted during the quarter by a standard license renewal process in China, which has been successfully completed, allowing for the resumption of shipment as well. The Diagnostic Business achieved a 5.2% increase in revenue on a constant currency basis this quarter. due to a broad expansion across both core and non-core markets, as well as a strong joint business value.

Nurture Gotcha: I'll start one continuing to improving Q1, reversing the challenges facing prior quarters when the company switches, it's all U S Alpha one major dispute with them.

Nurture Gotcha: While biopharma posted a strong overall performance it was partially offset by some phasing in albumin and Travis albumin was impacted during the quarter by a standard license renewal process in China, which has been successfully completed allowing for the resumption of shipment is flat.

Nurture Gotcha: The diagnostic business achieved a five 2% increase in revenue on a constant currency basis this quarter.

Nurture Gotcha: Due to our broad expansion across both core and noncore markets as well as a strong Jordan business volume growth.

Nacho Abia: Kissexmen, including Molecular Donor Screening, Immunocellular Donor Screening, and Blood Typing Solution, each grew by 7%, 12%, and 4% respectively, all on a constant currency. As I previously mentioned, Biopharma continues to be the main growth driver in the first quarter of the year. The IG franchise remains the leading growth protein. IVIG growth was fueled by strong demand in both U.S. and international markets, while subcutaneous IG continues to gain momentum, growing an impressive 91% at cost and cost. Driven by Heiger, the man across all key reaches. As mentioned, album sales growth was temporarily affected due to the manufacturing license renewal process in China.

Nurture Gotcha: Good sex men, including molecular donor screening them when I sat with analysts donor essakane blood typing solution, each grew by 7%, 12% and 4% respectively. All on a constant currency basis.

Nurture Gotcha: As I previously mentioned at Biopharma continues to be the main growth driver in the first quarter of the year.

Nurture Gotcha: The AG franchise remains a leading growth protein I V. E. G growth was fueled by strong demand in both U S and international markets, while subcutaneous AG continues to gain momentum growing an impressive 90, 191% at constant currency.

Nurture Gotcha: Driven by hydro to the mine across all key regions.

As mentioned in albumin sales growth was temporarily affected due to the manufacturing license renewal process in China. There are soldiers in a decline of 849% on a like for like basis, and nine 4% on a reported basis.

Nacho Abia: The result is in a decline of 8.9% on a like-for-like basis and 9.4% on a reported basis. As said, the renewal process has been successfully completed, and accordingly, we expect a stronger outmoving revenue performance in the upcoming quarter. Albumin remains a key component of our portfolio and we expect to continue to leverage our partnership in China with Shangaraz and higher to continue strengthening our position. Alpha-1 and Specialty Proteins revenue growth improved by 2.3% at cost and currency, and like for like compared to the previous year. This growth was driven by Alpha-1, continuing the traction seen in the last quarters, although it was partially upset by the phasing of demand for RIVUS treatment, which as already mentioned, will reverse in Q2 2025.

Nurture Gotcha: Let's say the renewal process has been successfully completed and accordingly, we would expect a stronger album and revenue performance in the upcoming quarters.

Nurture Gotcha: Albumin remains a key component of our portfolio and we expect to continue to leverage our partnership in China.

Nurture Gotcha: With Sanger ice on higher to continue strengthening our position.

Nurture Gotcha: Also widen, especially the prep proteins revenue grow growth improved by two 3% of constant currency like for like compared to the previous year.

Nurture Gotcha: This growth was driven by Alpha one continuing the traction seen in the last quarters. Although it was partially upset by the phasing of demand for IV treatment, which is already mention will reverse in Q2 2025.

Nacho Abia: Turning to next slide, I'll take a closer look at the performance and outlook for our IG franchise. As we highlighted during our Capital Markets Day, immunoglobulin remains the cornerstone of our biopharma business, driven by its status as our highest growth protein. This is evidenced by the strong underlying demand for both intravenous and subcutaneous therapies. Our strong growth and solid market positions have enabled us to capitalize on several market trends, including increased awareness of immune-related diseases, rising diagnosing rates, and the ongoing expansion of both secondary and primary immunodeficiency. Additionally, the continuous development of therapeutic solutions in areas like neurological diseases presents further opportunities for growth.

Nurture Gotcha: Turning to next slide I will take a closer look at the performance and outlook for our AG franchise.

Nurture Gotcha: As we highlighted during our capital markets day immunoglobulin remains the cornerstone of our Biopharma business driven by the status and our highest is our highest gross protein. This is evidenced by the strong underlying demand for both intravenous and subcutaneous therapies are.

Nurture Gotcha: Strong growth and solid market positions have enabled us to capitalize on several market forward for whatever market trends, including increased awareness of immune related diseases rice in diagnosis rates and the ongoing expansion of both secondary and primary immunodeficiency.

Nurture Gotcha: Generally the continuous development of therapeutic solutions scenarios like neurological diseases present further opportunities for growth.

Nacho Abia: We remain focused on executing the strategy outlined for biopharma, building on our leading brands, accelerating the diagnosis rate, and solidifying our leadership position in the market on the back of increasing global demand for the treatment of immediate followed by steady increases in albumin and alpha-1 antitrypsin and other speciality plasma derivatives.

Nurture Gotcha: We remain focused on executing the strategy outlined before Biopharma building on our leading brands accelerating the diagnosis rate and.

Nurture Gotcha: And solidifying our leadership position in the market on the back of increasing global demand for the treatment of immune deficiencies.

Nurture Gotcha: Followed by a steady increases in albumin and Alpha one antitrypsin and all of the speciality plasma derived therapies.

Nacho Abia: Let me discuss now our situation regarding recent tariff developments and our confidence that previous investments protect us well in the current environment and the latest developments in U.S. drug pricing. For decades, Grifols has developed a diversified global footprint of plasma donor centers, manufacturing facilities, and distribution hubs across key geographies, ensuring we are strategically located to serve patients where they need us. Our growth strategy has been investing in regional end-to-end capabilities that allowed us to adapt the process in response to evolving global demands. This vertically integrated and cross-licensed structure provides valuable flexibility and optionality to meet global needs with minimal disruption, while significantly mitigating uncertainty from potential tariff impacts.

Nurture Gotcha: Let me discuss in our situation regarding recent tariff developments and our confidence that previous in stem investments protect as well in the current environment and the latest developments in U S drug pricing policy.

Nurture Gotcha: Before that gets they felt has developed a diversified global footprint of plasma donor centers manufacturing facilities and these tuition hops across key geographies, ensuring whereas strategically located to serve patients where they need us.

Nurture Gotcha: Oh brother strategy has been investing in regional end to end capabilities that allow S allowed us to adapt the process in response to evolving global demand.

Nurture Gotcha: These vertical integrated in gross license or structure provides balance sheet flexibility and optionality to meet global needs with minimal disruption will significantly mitigate the natural tightening from potential tariff impacts.

Nacho Abia: In the United States, our comprehensive end-to-end supply chain is a key strategy. Plasma collected at over 300 US donor centers accounts for approximately 70% of our global plasma supply. This is then processed at our fractionation and purification facilities in Clayton, North Carolina, and Los Angeles, California, which together represents about 65% of our global capacity in this critical area. This alignment between our U.S. collection and manufacturing operations minimizes reliance on external sourcing and allows for agile responses to changing needs. Our presence in Europe and the Middle East is also significant, with nearly 100 plasma collection centers, paired with our manufacturing facilities in Spain, Germany, and Ireland.

Nurture Gotcha: In the United States, our comprehensive end to end supply chain is a key strengths plasma collect plasma collected at over 300 U S donor centers account for approximately 70% of our global plasma supply.

Dan: This is Dan process at our fractionation and purification facilities in Clayton, North Carolina, and Los Angeles, California, which together represents about 65% of our global capacity in these critical areas.

Dan: This alignment between our U S collection of manufacturing operations minimize reliance on external sourcing and allows for agile responses to changing needs.

Dan: Our presence in the media in the Europe and the Middle East is also significant with nearly 100 plasma collection centers bear with our manufacturing facilities in Spain, Germany and Ireland.

Nacho Abia: Our European Plasma Collection Network, the largest privately owned fleet, coupled with our expansion in Egypt, positions us well to serve increasing demand outside of the U.S. Consistent with our global strategy, we continue to invest in local partnerships that directly address regional needs. In China, our long-standing strategic partnership with Shanghai RAS and higher combined with our European manufacturing capabilities enable us to leverage a local presence and respond swiftly to regulatory developments. In Egypt and Canada, we are investing in greater self-sufficient partnership with the Egyptian government and Canadian blood service. In both countries we are establishing donor centres and manufacturing capabilities to support local healthcare ecosystems for the long term.

Dan: Our European plasma collection network, the largest privately owned fleet, coupled with our expansion in Egypt positions us well to serve increasing demand outside of the U S.

Dan: Consistent with our global strategy, we continue to invest in local partnerships directly address regional needs in.

Dan: In China, our longstanding strategic partnership with Shanghai restaurant higher combined with our European manufacturing capabilities enable us to leverage our local presence and respond swiftly to regulatory developments in.

Dan: And as you have in Canada, we are investing greater self sufficient in partnership with the Egyptian government and Canadian blood services, respectively.

Dan: In both countries, we're establishing donor centers and manufacturing capabilities to support local health care ecosystems for the long term.

Nacho Abia: This established global network of donor centers, manufacturing, testing sites, and distribution channels provides Grifols with a degree of resilience across core border microeconomic, political, and environmental uncertainties, including For more information visit www.grifols.org To reiterate, we do not anticipate any meaningful impact to our business due to tariffs as we believe this strategic approach has positioned us well to effectively serve patients globally and navigate the evolving geopolitical and fast-changing land. Since the early 2000s, recognizing the scale and importance of the U.S. market, we began strategic investments, starting with the acquisition of plasma centers and manufacturing assets, establishing our presence as a U.S.

Dan: These established global network of donor centers manufacturing testing sites and distribution channels provides great falls with a degree of resilience across core water macroeconomic political and environmental talent uncertainty, including tariffs.

Dan: To reiterate we do not anticipate any meaningful impact to our business due to tariffs as we believe this strategic approach has positioned us well to effectively serve patients globally and navigate the evolving geopolitical and fast changing landscape.

Dan: Since early 2000, recognizing the scale and importance of the U S market, we began a strategic investments starting with the acquisition of plasma centers and manufacturing assets Stablish and our presence as a U S manufacturer.

Nacho Abia: manufacturer. In 2011, we expanded further with the acquisition of Talecris in North Carolina, and we have since grown our plasma collection network through acquisition and organic At the same time, we are strengthening our European footprint by expanding manufacturing in Spain and increasing our capacity for fractionation, immunoglobulin, Alpha-1 and albumin purification. We also expanded our European Plasma Center Network, primarily in Germany, through joint ventures and organic. This was further consolidated with manufacturing operations in Ireland and the acquisition of a majority stake in biotesting. In 2019 and 2020, Grifols pioneered local partnership models in emerging markets. We deepened our presence in China through a strategic alliance with Shanghai RAS and launched self-sufficient initiatives in Egypt and Canada.

Dan: In 2011, we expanded further with the efficacy of Talecris in North Carolina, and we have since grown our plasma collection network through acquisition and organic investments.

Dan: At the same time, we're strengthening our European footprint by expanding manufacturing, Spain, and increasing our capacity for fractionation immunoglobulin Alpha one and album and purification.

Dan: We also expanded our European plasma Center network, primarily in Germany through joint ventures and organic growth.

Dan: This was further consolidated with manufacturing operations in Ireland, and the efficacy of a majority stake in biotech and in Germany.

Dan: In 2019, and 2020 Griffon pioneer local partnership models in emerging markets, we deepened our presence in China through a strategic alignment alliance with Shanghai Rice allowance since self sufficient initiatives in Egypt, and Canada in both countries, we're building plasma collection and manufacturing capabilities to meet local demand.

Nacho Abia: In both countries, we are building plasma collection and manufacturing capabilities to meet local demands. Together, this investment set the foundation for our next phase of growth and innovation, positioning Grifols to continue benefiting patients both in the U.S. and internationally.

Dan: Together these investments had the foundation for our next phase of growth and innovation position in Griffiths to continue benefiting patients both in the U S and internationally.

Nacho Abia: Finally, earlier today, the U.S. administration announced its intention to reintroduce a most favored nation, MFM policy. which aims to align U.S. and ex-U.S. drug While this is a recent announcement and we don't have all the details, there are some observations I would like you to consider at this point. First, plasma-derived therapies are different than regular drugs in its cost structure. We saw that this was recognized in the past in the US, as they were excluded, for example, from IRA direct price negotiation, and as well as in the first proposal of the MFN, where IG was explicitly excluded.

Dan: Finally earlier today the U S administration announced the intention to prevent to reintroduce our most favorite nation M. F. M policy, which aims to align U S and ex U S drug prices.

Dan: Well this is a restaurant and Amit announcement and we then have all the details there are some observations I would like to consider at this point.

Dan: First plasma derived therapies are different than regular that attracts in its cost structure. We saw that these would recognize in the past in the U S. As they were excluded for example from IR, a direct price negotiation and as well as in the first proposal of the M. F N, whereas <unk> was explicitly excluded.

Nacho Abia: We will continue to educate policymakers on the importance of access to plasma-derived therapies for U.S. patients. With respect to global pricing, price points for plasma-derived therapies are much closer than for many other pharmaceuticals. And part of the limited price difference is due to the higher cost of U.S. plasma compared to other metals. And finally, we have a diversified product portfolio and offering across different markets, which further help us to mitigate any potential.

Dan: We will continue to educate policymakers on the importance of access to plasma derived therapies for U S patients.

Dan: With respect to global pricing price point for plasma derived therapies are much closer than for many other pharmaceuticals and part of the limited price. The percent difference is due to the higher cost of U S plasma compared to other markets.

Dan: And finally, we have a diversified product portfolio and offering across different markets, which further help us to mitigate any potential impact.

Nacho Abia: In any case, we will closely monitor the developments and share any relevant updates in our forthcoming quarterly calls.

Dan: In any case, we will closely monitor the developments and share any relevant updates in our forthcoming quarterly calls.

Rahul Srinivasan: So with that, I will turn it over to Rahul, who will walk us through our financial results. Thank you. Thank you, Nacho. Indeed, we have highly dynamic forces impacting markets. Equally, as you say, we are very fortunate to have a business that benefits from significant strategic flexibility and optionality that allows us to navigate these highly dynamic markets very well. Notwithstanding the backdrop, the entire Grifols team has been resolutely focused on execution and executing well, and thereby delivering for our patients and our customers. In doing so, we remain on course to continue our record financial performances of 2023 and 2024 into 2025, having delivered in Q1 2025 the best Q1 in Grifols' history.

Dan: So with that I will turn it over to Rahul who will walk us through our financial results. Thank you.

Rahul: Thank you Nacho Indeed, we have highly dynamic forces impacting markets equally as you say, we are very fortunate to have a business that benefits from significant strategic flexibility and optionality that allows us to navigate these highly dynamic markets very well notwithstanding the backdrop the entire Griffiths T.

Rahul: <unk> has been resolutely focused on execution, and executing well and thereby delivering for our patients and our customers and in doing so we remain on course to continue our record financial performances of 2023 and 2024 into 2025, having delivered in Q1 2025.

Rahul: The best Q1 in Gryphon is history moving.

Rahul Srinivasan: Moving on to page 12 for the more detailed. Our Q1 numbers are ahead of plan, across the board, beating revenues, EBITDA, free cash flow, margins and leverage. As Q1 is our seemingly weakest quarter, we thought that the relative performance to our internal plan for the year would be helpful to the market.

Rahul: Moving on to page 12 for the more detailed picture.

Rahul: Our Q1 numbers are ahead of plan across the board, beating revenues EBITDA free cash flow margins and leverage.

Rahul: Q1 is our weakest quarter, we taught that the relative performance to our internal plan for the year would be helpful to the market, but I also want to make it clear that we will not be making reference drop plan all the relative performance on any of our subsequent quarter calls.

Rahul Srinivasan: But I also want to make it clear that we will not be making reference to our plan or the relative performance on any of our subsequent quarter. In addition, and as we did with our approach to laying out our full year 2025 guidance and the impact of Part D redesign within the Inflation Reduction Act during our Capital Markets Day, we are disclosing both our reported numbers as well as like-for-like numbers that allows the market to track more easily our underlying performance and momentum versus 2024, given the impact of IRA, and as you will recall, the gross-to-net reclassification that we made in Q4 last year.

Rahul: In addition, and as we did with our approach to laying out our full year 2025 guidance and the impact of part D redesign within the inflation reduction Act during our capital markets day, we are disclosing bolt our reported numbers as well as like for like numbers that allows the market to track more easily our underlying performance and momentum.

Rahul: And versus 2024, given the impact of IRA and as you will recall the crossed a net reclassification that we made in Q4 last year.

Rahul Srinivasan: Reported revenue for the quarter grew by 7.4% and by 10% like-for-like, both on a constant currency basis. reported Q1 gross profit margins were higher than Q1 2024 despite the impact of the IRA and the fee for service reclassification. The corresponding like-for-like margin improvement of 150 basis points clearly shows the continuing gross margin improvement potential. Reported adjusted EBITDA was up by 14.2%. on a constant currency basis and adjusted EBITDA margins improved by 80 basis points to 22.4% on a year-on-year basis and considerably higher on a like-for-like basis. Profit Before Tax and Group Profit are up by 145% and 179% respectively.

Rahul: Reported revenue for the quarter grew by seven 4% and by 10% like for like both on a constant currency basis reported Q1 gross profit margins were higher than Q1 2024, despite the impact of the I R. A N the fee for service reclassification.

Rahul: The corresponding like for like margin improvement of 150 basis points clearly shows the continuing gross margin improvement potential rip.

Rahul: Reported adjusted EBITDA was up by 14, 2%.

Rahul: On a constant currency basis, and adjusted EBITDA margins improved by 80 basis points to 22, 4% on a year on year basis and considerably higher on a like for like basis profit before tax and group profit are up by 145% and 117, 9%.

Rahul: Scent respectively.

Rahul Srinivasan: The free cash flow pre-M&A had a year-on-year improvement of 209 million, and I will elaborate on the drivers of this considerable improvement further in the presentation. And unlike prior years, where leverage tended to increase in Q1, we were able to delever in Q1 2025, and more on that later in the presentation. Finally, liquidity continues to be in a very robust place at 1.7 billion euros.

Rahul: Free cash flow pre M&A had a year on year improvement of $209 million and I will elaborate on the drivers of this considerable improvement further in the presentation and unlike prior years were leveraged tended to increase in Q1, we were able to delever in Q1, 25 and more on that later in the present.

Rahul: Patient finally liquidity continues to be in a very robust place at 1.7 billion euros. All in all a strong performance across the board delivered gryphons best Q1 performance ever.

Rahul Srinivasan: All in all, a strong performance across the board delivered Grifols' best Q1 performance ever.

Rahul Srinivasan: Slide 13 Having hit a revenue and earnings trough post-Covid, Grifols has delivered very strong and consistent growth across revenues and earnings. Indeed, the last two years have delivered record revenues in EBITDA, and Grifols very much remains on course to beat those records again in 2020. The rapid growth of revenues, adjusted EBITDA and reported EBITDA, quarter on quarter, is evidence of the secular growth in biopharma and our strong position in this attractive market. We at Grifols are particularly proud of the sequential improvement in LTM margins, be it adjusted EBITDA or reported EBITDA margins, and as a team we remain very focused on executing well and thereby continuing this trajectory for the quarters, if not years to come.

Rahul: Slide 13.

Rahul: Having hit our revenue and earnings trough post Covid Griffith has delivered very strong and consistent growth across revenues and earnings.

Rahul: Indeed, the last two years have delivered record revenues and EBITDA and grid falls very much remains on course to beat those records again in 2025.

Rahul: The rapid growth of revenues adjusted EBITDA and reported EBITDA quarter on quarter is evidence of the secular growth in biopharma and our strong position in this attractive market.

Rahul: We had good flows are particularly proud of the sequential improvement in LTM margins beat adjusted EBITDA, All reported EBITDA margins and as a team we remain very focused and executing well and thereby continuing this trajectory for the quarters, if not years to come.

Rahul Srinivasan: In particular, the 430 basis points improvement in LTM reported EBITDA margin and an almost 500 million increase in LTM reported EBITDA from circa 1.2 billion to 1.7 billion in just six quarters speaks to the normalizing earnings profile after the impact of a once in a hundred year pandemic event and the clear reduction in one-off non-recurring costs as well as the rapid convergence of reported EBITDA to adjusted EBITDA. If you look at page 26 in the annex, you can see further evidence of this convergence as the delta between adjusted EBITDA and reported EBITDA margin more than halved in Q1'25 versus Q1'24.

Rahul: In particular, the 430 basis points improvement in LTM reported EBITDA margin and an almost 500 million increase and LTM reported EBITDA from circa $1 2 billion to $1 7 billion in just six quarters speaks to the normalizing earnings profile after the <unk>.

Rahul: Fact of a once in 100 year pandemic event and the clear reduction in one off nonrecurring costs as well as the continued and rapid convergence of reported EBITDA to adjusted EBITDA.

Rahul: If you look at page 26 in the annex you can see further evidence of this convergence as the delta between adjusted EBITDA and reported EBITDA margin more than halved in Q1 25 versus Q1 'twenty fall.

Rahul Srinivasan: Indeed, if you look at the two EBITDA charts on slide 13, it clearly shows that reported EBITDA lags adjusted EBITDA by only two quarters, providing clear evidence that adjusted EBITDA is a very good proxy for Grifols' very near-term cash EBITDA potential. Slide 14 Adjusted EBITDA in Q1 2025 grew by 14.3% year-on-year. Just to contextualize that performance, EBITDA is growing almost twice as fast as revenues, as has been the case in 2023 and 2024. And depending on which end of the guidance range you use, our EBITDA is growing almost twice as fast as the growth implied by our EBITDA guidance for 2025, which as you will recall is on a post-IRA basis.

Rahul: Indeed, if you look at the two EBITDA charts on slide 13, it clearly shows that reported EBITDA lags adjusted EBITDA by only two quarters, providing clear evidence that adjusted EBITDA is a very good proxy for griffon is right near term cash EBITDA potential.

Rahul: Slide 14.

Rahul: Adjusted EBITDA in Q1, 'twenty five grew by 14, 3% year on year, just to contextualize that performance EBITDA is growing almost twice as fast as revenues as has been the case in 'twenty, three and 'twenty, four and depending on which end of the guidance range you use our EBITDA is growing almost twice.

Rahul: As fast as the growth implied by our EBITDA guidance for 25, which as you will recall is on a pole star a basis and hence a reference to the Q1 performance being ahead of plan, probably will not come as a surprise to the market.

Rahul Srinivasan: and hence our reference to the Q1 performance being ahead of plan probably will not come as a surprise to the mark. Despite the circa 140 basis points negative impact on our margins from IRA, we delivered a year-on-year adjusted EBITDA margin improvement of 80 basis points in Q1'25. I will not belabor the even more impressive stats of the like-for-like adjusted EBITDA performance as we absorb the IRA impact, but it certainly should give the market an appreciation for the underlying demand and the secular growth tailwinds led by our biopharma business. And it was particularly pleasing to see that revenue and earnings growth across all segments, including the strong revenue and EBITDA momentum that we are observing in our diagnostics business.

Rahul: Despite the circa 140 basis points negative impact on our margins from IRA we delivered a year on year adjusted EBITDA margin improvement of 80 basis points in Q1, 25, I will not belabor the even more impressive stats of the like for like adjusted EBITDA performance as we absorbed.

Rahul: The I R a impact, but it certainly should give the market an appreciation for the underlying demand and the secular growth tailwind led by our Biopharma business and it was particularly pleasing to see that revenue and earnings growth across all segments, including the strong revenue and EBITDA momentum that we are observing in our diagnostics business.

Rahul: Yes.

Rahul Srinivasan: On the biopharma side, the growth drivers of the strong performance in the quarter are consistent with our observations in prior calls. Strong diversified growth across regions in IG, both US and ex-US, that as you heard from Nacho is clearly outpacing the market. And due to the planned phasing impact as a result of our albumin license renewal in China, we would expect stronger albumin revenues in the upcoming quarters. Same holds true of Alpha-1 and other proteins, particularly if we take into account the seasonal demand for our rabies products. We continue to squeeze CPL with lots of focus from the team on efficiency gains, and we remain encouraged about the outlook.

Rahul: On the Biopharma side the growth drivers of the strong performance in the quarter are consistent with our observations in prior calls strong diversified growth across regions in I G. Both U S and ex U S that as you heard from Nacho is clearly outpacing the market and due to the planned phasing impact as a result of.

Rahul: Rob Beeman license renewal in China, we would expect stronger albumin revenues in the upcoming quarters same holds true of Alpha one and other proteins, particularly if we take into account the seasonal demand for our rabies product.

Rahul: We continue to squeeze C. P L with lots of focus from the team in efficiency gains and we remain encouraged about the outlook and speaking of efficiency gains. The team is excited about the manufacturing yield improvement potential as well as moving the mindset to a cost per gram of protein and not simply cost per liter.

Rahul Srinivasan: And speaking of efficiency gains, the team is excited about the manufacturing yield improvement potential, as well as moving the mindset to a cost per gram of protein and not simply cost per liter. And finally, ensuring we capture as fully as possible the operational leverage improvement potential that comes with the strong growth prospects whilst maintaining tight cost distribution.

Rahul: And finally, ensuring we capture as fully as possible the operational leverage improvement potential that comes with a strong growth prospects, whilst maintaining tight cost discipline.

Rahul Srinivasan: The last point I'd like to flag on this slide is the IRA adjustment. The $28 million was our accrual for Q1. We have had the benefit of receiving our first invoice, and it was in line with our expectations, giving us confidence that the $125 million midpoint of our range remains a prudent estimate.

Rahul: The last point I'd like to flag on this slide is the I R. A adjustment the 28 million was our accrual for Q1, we have had the benefit of receiving our first 10 voice and it was in line with our expectation.

Rahul: Giving us confidence that the $125 million midpoint of our range remains a prudent estimate.

Rahul Srinivasan: Slide 15. An update on our free cash flow generation improvement efforts. As a reminder, following our significant outperformance of free cash flow generation in 2024 versus prior guidance, we laid out much more detail around our prioritization of free cash flow generation as part of our strategic plan. And the significant $209 million free cash flow improvement in Q1'25 versus Q1'24 is further tangible evidence that the result from Q4'2024 was not a flash in the pan, but that this business can absolutely produce significant free cash flow as the effects of COVID period recede further and further into our rearview mirrors, and that we expect to be able to continue to demonstrate strong momentum in free cash flow generation in the quarters and years ahead.

Rahul: <unk> 15.

Rahul: An update on our free cash flow generation improvement efforts.

Rahul: As a reminder, following our significant outperformance of free cash flow generation in 2024 versus prior guidance, we laid out much more detail around our prioritization of free cash flow generation as part of our strategic plan and the significant 209 million free cash flow improvement in Q1 25 versus Q1 'twenty.

Rahul: Paul is further tangible evidence that the result from Q4 2024 was not a flash in the pan but that this business can absolutely produce significant free cash flow as the effects of Covid period recede further and further into our rearview mirrors and that we expect to be able to continue to demonstrate strong momentum in free.

Rahul: Cash flow generation in the quarters and years ahead.

Rahul Srinivasan: And this 209 million year-on-year improvement credibly underpins our free cash flow guidance for 2025.

Rahul: And this 209 million year on year improvement credibly underpins, our free cash flow guidance for 2025.

Rahul Srinivasan: Also, I wanted to touch on why Q1 tends to be our weakest free cash flow quarter. It is for two principal reasons. Firstly, it is our weakest EBITDA quarter, partly due to seasonality, and it tends to be sandwiched between two relatively strong quarters. And secondly, this is the quarter when the bonus payment for the year is made. Working capital management continues to be at the heart of our free cash flow improvement. Our inventory days in Q1'24 was unnaturally high, but Q1'25 continues the trend of the last four quarters. as we guided to during our Capital Markets Day, I do expect us to invest more capital to bolster our inventory position further, given the strong demand that we continue to see, but we will continue to manage that tension diligently.

Rahul: Also I wanted to touch on why Q1 tends to be our weakest free cash flow quarter. It is for two principal reasons. Firstly it is our weakest EBITDA quarter, partly due to seasonality and it tends to be sandwiched between two relatively strong quarters and secondly, this is the quarter when the bonus payment for the year is made.

Rahul: Working capital management continues to be at the heart of our free cash flow improvement our inventory days in Q1, 24 was unnaturally high but Q1 twenty-five continues the trend of the last four quarters as we guided to during our capital markets day, I do expect us to invest more capital to bolster our.

Rahul: Entry position further given the strong demand that we continue to see but we will continue to manage that tension diligently.

Rahul Srinivasan: Our receivable and payable days are settling down, or normalizing if you will, and continue to be in line with the last couple of quarters. The other notable part of our improved free cash flow generation is more EBITDA, further benefited by less cash adjustments as the effects of restructuring and transaction costs begin to dissipate as we have guided to previous. Finally, for the eagle-eyed amongst you, the phasing impact of interest and capex offset each other in Q125, so this 209 million year-on-year improvement is not simply down to timing or phasing differences, but it is real improvement.

Rahul: Our receivable and payable days are settling down or normalizing if you will and continue to be in line with the last couple of quarters.

Rahul: The other notable part of our improved free cash flow generation is more EBITDA further benefited by less cash adjustments as the effects of restructuring and transaction costs begin to dissipate as we have guided to previously.

Rahul: Finally for the Eagle Eyed amongst you the phasing impact of interest and Capex offset each other in Q1 25. So this 209 million year on year improvement is not simply down to timing of phasing difference differences, but it is real improvement.

Rahul Srinivasan: Slide 16 As our free cash flow generation story normalizes, it also helps our deleveraging profile. In prior years, Grifols' leverage typically increased in Q1 by up to half a turn or so. In contrast, due to the normalizing of our free cash flow story as evidenced by the sequential improvement you see on the chart on the right and continued strong year-on-year EBITDA growth, instead of leverage going up meaningfully in Q1, we have in fact delevered slightly from 4.6 times to under 4.5 times. And this deleveraging focus will remain a clear priority for us. Aside from the positive deleveraging, I continue to feel very good about the state of our balance sheet.

Speaker Change: Slide 16.

Speaker Change: As our free cash flow generation story normalizes. It also helps our deleveraging profile in prior years Griffes leveraged typically increased in Q1 by up to a half a turn or so in contrast, due to the normalizing of our free cash flow story as evidenced by the sequential improvement you see on the chart on the right.

Speaker Change: And continued strong year on year EBITDA growth instead of leverage going up meaningfully in Q1, we have in fact de levered slightly from four six times to under four five times and this deleveraging focus will remain a clear priority for us.

Speaker Change: Aside from the positive deleveraging I continue to feel very good about the state of our balance sheet. We have strong $1 7 billion euros of liquidity, we have a lot of rainy days secured capacity, if we ever need it we have no meaningful maturities until Q4 2027, we have a very encouraging rate outlook supporting our reefer.

Rahul Srinivasan: We have strong 1.7 billion euros of liquidity. We have a lot of rainy day secured capacity if we ever need it. We have no meaningful maturities till Q4 2027. We have a very encouraging rate outlook supporting our refinancing plans in Q2 or Q3 2026. The private placements we placed around six months ago are yielding meaningfully less than they were which suggests that our credit re-rating focus continues to gather momentum.

Speaker Change: Nancy plans in Q2, or Q3 2026, the private placements, we placed around six months ago are yielding meaningfully less than they were issued at which suggests that our credit re rating focus continues to gather momentum in summary, all progressing very positively on this front too.

Rahul Srinivasan: In summary, all progressing very positively on this front too. Slide 17 At a time of significant change from a global macroeconomic perspective, to be able to provide the market with the confident message that we are providing today is helped significantly by the Grifols' legacy and its pioneering spirit that has allowed us to be at the forefront of this attractive market. For many years, indeed decades as Nacho mentioned before us, Grifols has developed a global yet very local strategy. Essentially an in-market, for-market, vertically integrated strategy and pioneering various regions' self-sufficiency aspirations. And with it, highly critical regional partnerships.

Speaker Change: Slide 17.

Speaker Change: At a time of significant change from a global macroeconomic perspective to be able to provide the market with a confident message that we are providing today is helped significantly by the gryphons legacy and its pioneering spirit that has allowed us to be at the forefront of this attractive market for.

Speaker Change: For many years, indeed decades, as Nacho mentioned before US Griffes has developed a global yet very local strategy essentially an in market for market vertically integrated strategy and pioneering various regions self sufficiency aspirations and with it highly critical regional partnerships.

Rahul Srinivasan: That gives us today a highly strategic portfolio with somewhat unique optionality and flexibility to be able to effectively navigate all the changes that are upending global markets and global supply chains. And also be in a position to capitalize on opportunities that these potential changes might create. Clearly, this remains a fluid situation, but our assessment is that we are navigating these changes from a position of strength and we will continue to monitor the detail closely and adapt if we need to, even if for the moment our assessment is that we are not expecting any meaningful negative impact on our business.

Speaker Change: That gives us today, a highly strategic portfolio with somewhat unique optionality and flexibility to be able to effectively navigate all the changes that are upending global markets and global supply chains and also be in a position to capitalize on opportunities that these potential changes might create.

Speaker Change: Clearly this remains a fluid situation, but our assessment is that we are navigating these changes from a position of strength and we will continue to monitor the detailed closely and adapt if we need to even if for the moment. Our assessment is that we are not expecting any meaningful negative impact on our business.

Rahul Srinivasan: With respect to Eurodollar, critically, a depreciating U.S. dollar is broadly neutral to positive from a group profit, leverage, and free cash flow standpoint. This is as a result of the natural hedges embedded in our business model. For example, a significant proportion of our COGS, our OPEX, our CAPEX, our inventory, our debt are all U.S. dollar denominated. Yes, a structurally weaker dollar does pose a headwind in absolute revenues in EBITDA, even if it is positive from a margin standpoint. So in summary, we are not overly concerned about a depreciating U.S. dollar. And as a result of the strong momentum and outlook that Nacho and I have talked about, notwithstanding the macroeconomic backdrop, we reaffirm our 2025 guidance and we remain on course to deliver a third consecutive record year in 2025.

Speaker Change: With respect to Euro dollar critically a depreciating U S. Dollar is broadly neutral to positive from our group profit leverage and free cash flow standpoint. This is as a result of the natural hedges embedded in our business model for example, a significant proportion of our Cogs are up.

Speaker Change: Opex or capex, our inventory our debt are all U S. Dollar denominated, yes, a structurally weak dollar does pose a headwind and absolute revenues in EBITDA, even if it is positive from a margin standpoint. So in summary, we are not overly concerned about a depreciating U S dollar and as a result.

Speaker Change: The strong momentum in outlet and nurture and I have talked about notwithstanding the macro economic backdrop, we reaffirm our 2025 guidance and we remain on course to deliver a third consecutive record year in 2025 finally on by test. The delisting offer has been approved by Boston and the offer period runs.

Rahul Srinivasan: Finally, on buy test, the delisting offer has been approved by Barfin and the offer period runs through till early June and therefore we are progressing as planned with this offer being financed from existing resources consistent with the capital allocation framework we presented at our capital market.

Speaker Change: Through till early June and therefore, we are progressing as planned with us alpha being financed from existing resources consistent with what the capital allocation framework, we presented at our capital markets day with that let me hand, it back to Nacho for his concluding remarks.

Nacho Abia: With that, let me hand it back to Nacho for his concluding remarks. Thanks, Rahul. I would like to conclude this call reiterating a few points that we have already made, but I think it's worth repeating. The first quarter of 2025 builds upon the strong momentum achieved in 2025. laying a solid foundation for the remainder of the year and demonstrating the operational resilience of the organization. Even in dynamic markets, we're executing the roadmap outlined in our strategic plan, and that roadmap is delivering results. Improving free cash flow generation and continuing to deliver remain top priorities for the company.

Speaker Change: Thanks Rahul.

Nacho: I would like to conclude this call reiterating few points that we have already made but I think it's worth repeating.

Nacho: The first quarter of 2025 builds upon the strong momentum achieved in 2024.

Nacho: [noise] laying a solid foundation for the remainder of the year and demonstrating the operational resilience of the organization.

Nacho: Even in dynamic markets, we're executing the roadmap outlining our strategic plan and that roadmap is delivering results.

Nacho: Improving free cash flow generation and continuing to the leverage remain top priorities for the company is.

Nacho Abia: These are not merely financial objectives. They are central to our strategy. We are seeing tangible progress and will continue to embed financial discipline across the company. These financial improvements cannot be achieved without the substantial progress we have made in operational excellence and R&D, which continue to be the key drivers of profitability and sustained performance. As part of the execution of our strategic plan, we are also advancing our initiatives around corporate simplification and portfolio optimization. These efforts are progressing and are critical to unlocking operational efficiencies and sharpening our focus on the core areas where we can lead and win.

Nacho: These are not mentally financial objectives. They are central to our strategy. We are seeing tangible progress and will continue to embed financial discipline across the company. These financial improvements cannot be achieved without the substantial progress. We have made in operational excellence in R&D, which continue to be the key drivers of profitability and sustained.

Nacho: Performance.

Nacho: As part of the execution of our strategic plan. We are also advancing our initiatives around corporate simplification and portfolio optimization.

Nacho: These efforts are progressing and are critical to unlocking operational efficiencies and sharpening our focus on the core areas, where we can lead and win.

Nacho Abia: We are committed to building a simpler, more agile and more focused organization that is best positioned to capture opportunities and respond swiftly to evolving market dynamics. At the same time, a regional business model continues to provide a strong buffer against global uncertainty. By sourcing, manufacturing and distributing locally, we maintain a structural advantage in navigating tariffs and other external pressures across different markets. Finally, as we look ahead, the entire executive team as well as the entire organization are focused on accelerating the execution of the company's operating plan, on operational excellence, on cash flow improvements and debt reduction, and ultimately on increasing value for all shareholders.

Nacho: We are committing committed to building a simpler more agile and more focused organization that is best positioned to capture opportunities and respond swiftly to evolving market dynamics.

Nacho: At the same time original business model continues to provide a strong buffer against global uncertainty by sourcing manufacturing and distributing locally we maintain a structural advantage in navigating tariffs and other external pressures across different markets.

Nacho: Finally, as we look ahead and direct side with this team as well as the entire organization our focus on accelerating the execution of the company's operating plan on operational excellence and cash flow improvements in depth reduction and ultimately an increase in value for all shareholders. The foundation is solid and the opportunity in front of.

Nacho Abia: The foundation is solid and the opportunity in front of us is nothing short of outstanding.

Nacho: US is nothing short of outstanding.

Nacho Abia: Thank you again for your continued support.

Nacho: Thank you again for your continued support.

Daniel Segarra: And with that, Danny, back to you.

Nacho: And with that Danny back to you.

Daniel Segarra: Thank you Nacho.

Nurture Gotcha: Thank you nurture.

Unknown Executive: Now let's turn to the Q&A session. Please remember to press star 5 to ask a question.

Speaker Change: Now, let's turn to the Q&A session. Please remember to press star five to ask a question.

Unknown Executive: We need to place a limit of two questions per analyst. You have follow-ups, please dial star 5 again to get back on the list. After you ask your question, we will put you on mute to reduce any background noise.

Speaker Change: We need to place a limit of two questions Banalities you have follow ups. Please dialister fyfe again to get back under lease. After you ask your question. We will put you on mode and route to reduce any background noise.

Charles Pitman: If I'm not wrong, I think that our first question is coming from Charles Pitman from Barclays. Hi guys, thanks so much for taking my questions. Two, if I may, just firstly, to your point about doing Grifols business structure as protected from ongoing US policy discussions.

Speaker Change: If I'm not wrong I think that our first question is coming from Charles Pitman from Barclays Charles.

Charles Pitman: Hi, guys. Thanks, so much for taking my questions two if I may.

Speaker Change: Just firstly to your point about seeing referrals business.

Speaker Change: Sure is protected from one guy in U S policy discussions.

Charles Pitman: I was just wondering if you could give us a little bit more transparency around what Grifols exposure is and what the split is across Medicare Part B, D and Medicaid, just to kind of give us a little bit more to work with when considering these potential impacts, regardless whether it then turns out the plasma-derived therapies are excluded. And then just secondly, with regards to the albumin phasing noted in the release today, I was wondering if you could provide a little bit more detail on what the implied underlying growth looks like in this market, excluding the disruption, and what kind of led to the unexpected delay, given this risk wasn't flagged ahead of results, so effectively just any more confidence you can give us on the strength of the albumin market generally.

Speaker Change: I was wondering if you could give us a little bit more transparency around what the exposure is and what the split is across Medicare part D and Medicaid just to kind of give us a little bit more to work with when considering these potential impacts regardless, whether or not it then sends out a plasma derived therapies all excluded.

Speaker Change: And then just secondly, with regards to the album and phasing noticed in our release today I was wondering if you could provide a little bit more detail on what the implied underlying growth looks like in this market excluding the disruption.

Speaker Change: What kind of led to the unexpected delay given this risk wasn't flagged ahead of results.

Speaker Change: More confidence you can give us on the strength of the elevated market generally thank you.

Charles Pitman: Thank you.

Nacho Abia: Thank you, Charles. This is Nacho. On your first question, I mean, honestly speaking, I think that it's really too early to make any conclusion whatsoever. I think that for the reasons I explained previously in my presentation, I believe that we are well-positioned to face whatever will come in the most favoring nation, but we have to see the details of that and how this unfolds. On the tariffs, I think that I also make clear that our presence in the U.S. is very solid and essentially self-sufficient there, so we don't see at this point any impact as well on that.

Chad: Thank you Chad.

Speaker Change: This is a this is nacho.

Speaker Change: On the on your first question I mean honestly speaking I think that it's too really too early to make any conclusion whatsoever. I think that are for the reasons. I explained previously in my presentation I believe that we are well position.

Speaker Change: To face whatever will come in the in the most favorite nation, but we have to see the details of that and hold these M falls on the tariffs I think that I also made clear out of that are our presence in the U S.

Speaker Change: <unk> is very solid and and essentially self sufficient there. So we don't see at this point any impact as well on that front.

Nacho Abia: So that's what I can say on the first point. On the second point, I mean, the album in license renewal is something that was planned, it's something that happened every certain time. And this doesn't change our goals for the year. And our goals for the year is that we plan to grow album in by five, 6%. And we continue on that path after the resumption of the shipments, after the license approval. Thank you, Charles.

Speaker Change: So that's what I can say on the first one on the second point I mean, the the albumin.

Speaker Change: License renewal is something that was plan is something that happened every certain time.

Speaker Change: And and that this doesn't change our our goals for the year and our goals for the year is that we plan to grow albumin.

Speaker Change: By five 6% and <unk> and we continue on that path. After the resumption of the shipments after the license approval. Thank you Charles.

Charles Pitman: Thanks, a lot.

Nacho Abia: Thank you Nacho.

Nigel: Thank you Nigel.

Jaime Escribano: Now I will ask Jaime from Santander, Jaime Escribano. Hi, good afternoon. So A couple of questions from my side.

Now I mean, I will ask Jaime from Santander Jaime's Carvana.

Jaime: Hi, good afternoon. So.

Nigel: Couple of questions from my side.

Jaime Escribano: The first one would be when do you expect revenues coming from Canada? Are you already making revenues in the new facility there or what is the road map? So that would be one question.

Nigel: First one would be when do you speak.

Speaker Change: Revenues coming from Canada.

Speaker Change: Are you already making revenues in the new facility there or what is the roadmap. So that would be one question on the second question would be regarding treatment emerging.

Jaime Escribano: And the second question would be regarding fibrinogen. So do you produce the fibrinogen in Europe or is it biotase or are you going to produce it in the U.S.? I'm also thinking on the tariffs and how is this product being produced. Thank you very much.

Speaker Change: So do you produce.

Speaker Change: Again, Europe is he thinks or where are you going to break you see in the U S and also thinking on the <unk>.

Speaker Change: On the Dod gave some how we display the employees. Thank you very much.

Speaker Change: The first question.

Speaker Change: Will be taken by nature.

Nacho Abia: On the Canadian side, our presence in Canada goes back many years. It is not thanks to the agreement with Canadian Blood Services for self-sufficiency. Clearly, our partnership there positions us very well in a market which is very significant in the world. We are increasing the number of donor centers in agreement with Canadian Blood Services and we plan to manufacture products in Canada. That will definitely improve our presence in the market and let us capture even a higher presence in that market. It is already happening as we speak and there is more to come over the next year.

Speaker Change: On the Canadian side right. So our our presence in kind of that goes back many years I mean that is not a there's no. Thanks to the agreement with Canadian blood services for self sufficiency, clearly our partnership there positions us very well in a in a market, which is very significant in the world.

Speaker Change: We will be producing I mean number one we are increasing the number of donor centers and are in agreement with Canadian blood services, and we plan to manufacture products in Canada.

Speaker Change: That will definitely in improve our presence in the market and let us capture even a higher presence in that market. So it's already happening as we speak and and there's more to come over the next years.

Nacho Abia: As per Fibrinogen, the plan is to start the production of Fibrinogen in Germany. as in the biotest facility, but later on to move that production to the United States to our Clayton facility. That's the current plan. Thank you so much, Nacho.

Speaker Change: Fibrinogen. The plan is to start the production of fibrinogen in Germany.

Speaker Change: As a in the biotech.

Speaker Change: Facility, but later on to move that production to the United States to our Clayton facility. That's our current plan for that.

Speaker Change: Thank you Hemant.

Graham Parry: Now it's time for Graham Parry from Bank of America. Hi, this is Charlie Heywood, Bank of America. Quick question on Alpha One, please. Can you provide a ballpark number of your Alpha One revenues? And then how do you quantify the potential risk to that from an accelerated approval for Inhibrix 101? And secondly, on the contribution of Alpha One to your midterm guide, what do you reflect in terms of the potential competition from Inhibrix 101? And does your midterm outlook assume success of the SPARTA and SUBCUT trials?

Nurture Gotcha: Thank you so much nurture now it's time for Graham Parry from Bank of America Graham Please.

Speaker Change: Hi, This is Charlie Heritage Bank of America, a quick question on Alpha one. Please could you provide a ballpark number of your Alpha one revenues and then how would you quantify the potential risk to that from an accelerated approval for them and it breaks 101.

Speaker Change: Secondly on the contribution of Alpha one Joe Midterm guide what you reflect in terms of the potential competition from <unk> 21, and does your midterm outlook assume success of these thoughts on sub cut trials. Thank you.

Graham Parry: Thank you. Well, we don't disclose the Alpha-1 revenues. I mean, we share it together with speciality proteins as well, so we don't disclose that number. Regarding the potential impact of Inhibrix, this has been fully baked in our long-range plan that was presented in the capital market today. And this was in the best possible case for Sanofi, that will be that the launch will happen in 2027, as it was previously announced. This still has to be confirmed, but in any case, for our long-range plan, it is included, and we are considering... a potential impact of that, that obviously we will work to mitigate through our SPARTA trial and other measures.

Speaker Change: Well.

Speaker Change: We don't disclose the the alpha one revenues I mean, we shared it together with our speciality proteins as well so we don't disclose that number.

Speaker Change: Regarding the potential impact of Incuba, because this has been fully bake it in our in our long range plan that was presented in the capital markets day and this was in the in the best possible case for Sanofi that will be that the lounge will happen in 2027 as a as it was previously announce this is still <unk>.

To be confirmed but in any case for our long range plan.

It is included and we are considering.

Speaker Change: A potential impact of that that obviously, we will work to mitigate throw out as part of trial and error and other measures, but but as I say. This is the worst case scenario for us and this is still needs to be confirmed anything that a whale delay that approval will be an upside on our long range plan.

Graham Parry: But as I say, this is the worst-case scenario for us, and this still needs to be confirmed. Anything that will delay that approval will be an upside on our long-range plan.

Roland Wandeler: And maybe Roland wants to add something to that? Well, the one thing to keep in mind for us is that Alpha 1 is an area where patients continue to be highly underdiagnosed and undertreated, about 15% of patients only are And what we do expect is with increasing awareness, with new options for patients, and also with increasing needs for screening, that the number of diagnosed and treated patients will increase. So what we have in our plan is, on one hand, a significant growth in treated patients and we see, and within this growth of the market, we have, of course, also, from a risk-adjusted perspective, assumed appropriate uptake for new entrants.

Speaker Change: And maybe rolling wants to add something to that well the one thing to keep in mind for US is that all for one is an area where patients continue to be highly underdiagnosed and undertreated about 15% of patients only are treated and.

Speaker Change: What we do expect this with increasing awareness with our new options for patients and also with increasing meets force for screening. That's the number of diagnosed untreated patients will increase so what we have in our plan is on one hand, you know a significant growth in treated patients in market that we see.

Speaker Change: And within this growth of the market. We have of course also from a risk of Chaucer perspective assumed appropriate uptake for new entrants.

Roland Wandeler: Thank you very much, Roland.

Thank you very much roeland.

Alvaro Lenze: Alvaro Lenze from Alantra, the floor is yours. Hi, thanks for taking my questions. I just wanted some clarification on the US dollar impact. I was quite surprised to see that you expect neutral to potentially even positive impact. I would understand that just the translation would have a negative impact and it was also my understanding that you have less debt balance in US dollar compared to the business exposure you have there. So I would have expected potentially a negative impact. on leverage because your profits fall more due to the translation than your debt falls due to the translation.

Alberto landfill: Alberto landfill from from Alantra the floor is yours.

Speaker Change: Alright, Thanks for taking my questions I just wanted some clarification on the U S. On our impact I was quite surprised to see that you expect neutral to potentially even positive impact.

Speaker Change: I would understand I understand that just the translation would have a negative impact and it was also my understanding that you have less balance in U S dollar compared to the business exposure you have there so I would have expected.

Speaker Change: Really a negative impact on them.

Speaker Change: On on leverage because your profits for more than just the translation on your debt false.

Alvaro Lenze: So if you could clarify that, that would be very helpful.

Speaker Change: So if you could clarify that would be very helpful and the second question would be.

Alvaro Lenze: And the second question would be, looking at your 28 million IRA impact in Q1, and you mentioned the first invoice has been in line with expectations, could we narrow down the expected IRA impact for 2025 to roughly 110 million, or are you still uncertain and prefer to stick to the 100 to 150 range that you provide at the CMB? Thank you.

Speaker Change: Looking at your 28 million I already impacting Q1, and you mentioned your first invoice how has it been in line with expectations, who do we narrow down the expected impact for 2025 to roughly 110 million or are you still unsure.

Speaker Change: I'm, sorry that I'm, referring to stick to the 100 to 150 range, you're probably the CMV. Thank you.

Rahul Srinivasan: Thanks, Alvaro. On the U.S. dollar impact, the guidance that we've provided, I'll just repeat it, which is broadly neutral to positive from a group profit. leverage and free cash flow standpoint, right? And part of the reason for that is the embedded hedging that we have within our operations. If you, you know, you may look at our revenues and say, hey, where we've got 70% or 60% of our revenues in US dollars, but at the end of the denomination, as you think through all of those various layers and the sensitivities that, you know, we've run some pretty aggressive sensitivities, we feel pretty good about that guidance that I've just provided.

Speaker Change: Thanks Oliver.

Speaker Change: On the U S dollar impact the the guidance that we've provided you know we are I'll just repeat it which is broadly neutral to positive from our group profit.

Speaker Change: Leverage and free cash flow standpoint, right and part of the reason for that is the embedded hedging that we have within our operations. If you. If you know you may look at our revenues and say, Hey, where we've got 70% or 60% of our revenue.

Speaker Change: In U S dollars, but at the end of the day, you've got also to factor into that our Cogs.

Speaker Change: You know, our our Opex inventory U S. Dollar denomination as you think through all of those various layers and and and and and the sensitivities that you know we've run some pretty aggressive sensitivities, we feel pretty good about that guidance that I've just provided so I'll leave it at that.

Rahul Srinivasan: So I'll leave it at that. With respect to your second question on the 28 million IRA accrual and the first invoice being in line with our expectations, as I mentioned, we believe that the midpoint, which is what we guided to during our capital markets day, if you remember the slide, we talked about the 125 million impact, I believe that 125 million remains a prudent estimate based on what we've seen so far. But look, we've got one data point and I, you know, we will continue to update the market. And most importantly, we'll continue to be completely open with our numbers so that you guys can factor that impact in.

With respect to your second question on 'twenty on the 28 million I R. A accrual and the first invoice being in line with our expectations as I mentioned, we believe that the midpoint, which is what we guided to during our capital markets day. If you remember the slide we.

Speaker Change: Talked about the 125 million impact I believe that 125 million remains a prudent estimate.

Speaker Change: Based on what we've seen so far but look we've got one data point and I. You know, we will continue to update the market and most importantly, we will continue to be completely open with our numbers. So that you guys can can factor that that impact and but our our I'll just repeat our confidence around the 125 million.

Rahul Srinivasan: But I'll just repeat our confidence around the 125 million prudent estimate statement that I made in my prepared remarks. Thanks.

Speaker Change: And prudent estimate statement that I made in my prepared remarks.

Oliver: Thanks Oliver.

Rahul Srinivasan: Thank you Rahul, thank you Alvaro.

Speaker Change: Thank you Rahul. Thank you Alberto the next question is coming from Guillermo from Kashagan.

Guilherme Sampaio: The next question is coming from Guilherme from CaixaBank. Hello. Thank you for taking my question. Just one still on the executive order, if possible. Could you at least confirm your exposure to Medicare and Medi-Chi post-IRI adjustments that you expect for this year? And then the second question, could you provide a bit more color on the significant step-up quarter-on-quarter in SG&A that we've seen this quarter?

Speaker Change: Hello. Thank you for taking my question just one still on the on the executive order if possible could you at least critical for your exposure to Medicare and Medicaid both their adjustments that you expect for this year.

Speaker Change: And then the second question could you provide a bit more color on the significant step up quarter on quarter in SG&A that you see in this quarter. Thank you.

Roland Wandeler: Thank Roland is going to take the first question, and then the second question is going to go for Rahul. Roland, please. Yes, as Nacho said before, we don't provide specific breakouts of Medicaid or Medicare, but, you know, just for everybody to remember, a significant part of our use is in commercial patients. And as we look at Medicare, we actually have a mix of Part B and Part D, which, you know, puts us in a more divisive position. And as Nacho also, you know, emphasized, we will continue to educate that plasma-derived therapies are different from biopharmaceutical drugs.

Speaker Change: Yeah.

Speaker Change: Okay. Roland he is going to take the first question and then the second question is Gonna go for Russell relentless, yes, that's not to say before we don't provide specific breaks out of Medicaid or Medicare, but you know just for everybody to remember a significant part of our use is and commercial pay.

Speaker Change: And as we look at Medicare, we actually have a mix of part B and part D, which you know puts us in a in a more device for position.

Speaker Change: And as Nacho also you know emphasized we will continue to educate the plasma derived therapies are differing from biopharmaceutical drugs and you know we saw that this was recognized in the past we see that looking across the world price points are closer than what you see with channel drugs and are you now.

Roland Wandeler: And, you know, we saw that this was recognized in the past. We see that looking across the world, price points are closer than what you see with general drugs. And, you know, lastly, we believe that we have a product portfolio that provides us with a differentiated offering across the world.

Speaker Change: Lastly, we believe that our we have a product portfolio that provides us with a differentiated offering across the world. So looking at all of that we do at this point not expect any negative business impact from you know any executive order into 2025.

Rahul Srinivasan: So looking at all of that, we do at this point not expect any negative business impact from, you know, any executive order into 2025. And then your comment on SG&A, part of it relates to the reclassification in Q4-24, if I followed your question correctly. And again, as part of revenue going up, our, you know, SG&A as a percentage of sales obviously gets correspondingly impacted. And we've also got the fibrinogen launch as we think about, you know, working towards that, just from an SG&A and OPEC standpoint as well.

Speaker Change: And and then your comment on on SG&A part of it relates to the reclassification in Q4 24, if I followed your question correctly.

Speaker Change: And again this is as part of revenue going up or SGA SG&A as a percentage of sales obviously gets a correspondingly impacted.

Speaker Change: And we've also got the Fibernet Gen launch as we think about you know working towards that from an out of just just from an SG&A and opex standpoint, as well so I'll leave it at that gamma if I might.

Rahul Srinivasan: So I'll leave it at that, Guilherme, if I might. Thank you so much, Rahul.

Charles Pitman: Okay. Thank you so much Rahul now we have a second run off questions. Charles Please Charles Pitman from Barclays.

Charles Pitman: Now we have a second round of questions. Charles, please. Charles Pitman from Barclays.

Charles Pitman: Yes.

Charles Pitman: Yeah.

Jaime Escribano: It seems that Charles is...

Charles Pitman: Okay. It seems that childish houses.

Jaime Escribano: not on the line, Jaime. Jaime Escribano from Mancos & Thunder Yeah, hi. A couple of follow-up questions from my side. So maybe just to get some color on what's going on in IVIG and subcutaneous. So both growing really well. Also your peers, CSN Taquera also posting strong growth. And at the same time, Argenix also growing very fast. So I would like to hear what's your conclusion. Why is everybody seems to be growing so fast? If you can give us some hints on that. A second question regarding the donor fee, if you can give us also some guidance on what is the pricing right now per donor if it keeps going down?

Charles Pitman: It's not on the line Hi, Matt.

Speaker Change: Hi, Miss Cubana from Banco Santander.

Speaker Change: Yeah, Hi.

Speaker Change: Follow up questions from my side.

Speaker Change: Maybe just to get some color on what's going on in IV and subcutaneous so both.

Speaker Change: Growing really Wang also your peers.

Speaker Change: They are also posting strong growth and at the same time <unk> also.

Speaker Change: Growing very fast so I would like to hear what's your conclusion that way each everybody seems to be growing so fast there. If you can give us some hints on on that second question regarding the donor fee. If you can give us also some.

Speaker Change: Some guidance on what is the pricing right now for I don't know if it keeps going down on these these are also a driver for that or.

Jaime Escribano: And is this also a driver for the gross margin?

Jaime Escribano: And finally, if I can say a final one, which is very quick, because I think you will not answer, but I will try. If the biotest bid is not successful, and hence you don't spend this $600-$400 million bid, would you use these proceeds to, for example, buy human BPC?

Speaker Change: For the gross margin on finally, if I can say a final one which is very quickly because I think you will not answer, but I will try it if if and the biotech speed is not successful unchanged you're going to spend it.

Speaker Change: 400 million and deep.

Speaker Change: Would you use these.

Speaker Change: Our seats to for example, buy him on BBC or.

Roland Wandeler: Thank you.

Speaker Change: Thank you.

Speaker Change: Okay.

Roland Wandeler: The first question will be taken by Roland. Yeah, thank you, Jaime. And I will take it actually on the IG side in two parts. First, you know, looking at sub-QIG, which in the US is approved for primary immune deficiency, we are truly very encouraged with the momentum that we see, as Nacho and Rahul explained, in the 90s for Q1 and last 12 months, you know, close to 70%, like for like. This reflects, you know, uptake by prescribers in the US from our focus that we have in the field, but also the profile of Xembify, which is very well appreciated by HCPs around the world, and our launch momentum XUS.

Speaker Change: First question will be taken by Roland.

Roland: Thank you can I mean that would take it actually on Dai Ichi siding in two parts first you know looking at soft Q I E.

Speaker Change: Which in the U S is a proof of primary immune deficiency. We are truly very encouraged with the momentum that we see us as Nacho and Raul explained in the Ninety's for Q1 in the last 12 months, you know close to 70% like for like these reflect uptake by prescribers in the U S from our focus that we have enough.

Speaker Change: Field, but also the profile of 75, which is very well appreciated by by Hep's around the world and our launch momentum ex U S. We still have significant opportunity ahead here and you know as we continue to gain share in PID and we expand our indication perks and defined the U S with RCI D. P. N S. I D label on the sea.

Roland Wandeler: We still have significant opportunity ahead here. And, you know, as we continue to gain share in PID, and we expand our indication for Xembify in the US with our CIDP and SID label. On the CIDP side, which is where your question comes in with Argenix, indeed, we continue to be very encouraged with the performance that we see for our IG there. We see that the uptake for Argenix has been mostly been in the second line. And, you know, recently, we also saw a number of patients actually switching back to IVIG after a trial of FCRNs.

Speaker Change: I T P site, which is where your question comes in with our genetics are indeed, we continue to be very encouraged with the performance that we see for our hour I E. There are we see that the uptake for our Chinese has been mostly been in the second line and you know recently, we also saw a number of patients actually.

Speaker Change: Switching back to I V. I T. After a trial of Oh, I see our ens and from what we hear from opinion leaders and what we see with our own brands, where our our robotics continues to grow in this indication.

Roland Wandeler: And from what we hear from opinion leaders, and what we see with our own brands where, you know, our Argenix continues to grow in this indication, we remain very confident in our first line position for IG and the growth potential ahead. This reflects the fact that CIDP is a multifactorial disease. It reflects the fact that IG is ideally suited with its polyvalent mechanism of action to treat this disease. It reflects a long standing experience, and also, of course, the access hurdles, which are lower than perhaps for some other new entrants. So from that perspective, we continue to be very encouraged.

Speaker Change: We remain very confident in our first line position for I T and the growth potential I had this reflects the fact that the ADP is a multifactorial disease eight reflects the fact that he is ideally suited with its polyvalent mechanism of action to treat this disease. It reflects a long standing experience and also of course, the access hurdles, which are lower than <unk>.

Speaker Change: Perhaps for some other new entrants so from that perspective, we continue to be very encouraged and the growth that you see I think reflect just the potential that you have in D. C thesis in channels see ADP as primary menu efficiency, a second immune deficiency was underdiagnosed undertreated with increased awareness, we see that more patients get the.

Roland Wandeler: And the growth that you see, I think, reflects just the potential that you have in these diseases in general. CIDP, as primary mental deficiency or secondary immune deficiency, was underdiagnosed, undertreated. With increased awareness, we see that more patients get the benefit.

Roland Wandeler: And we are very glad that we can provide our medicine to these Let me comment on the donor fee and then Rahul will comment on the biotest question. We continue working on the donor fee mostly in two fronts, and we have been seeing positive evolution and we think that the positive evolution will continue, I mean, first of all, in the whole donor experience, right? So we're working in matters from smart compensation and different activities to attract donors to our centers and to federalize them in the centers, while at the same time, we're working on the rollout of the individual nomogram that is now present in 60% of our donor centers and we are planning to continue the rollout through the year.

Speaker Change: And we are very glad that we can provide our medicines to these patients.

Speaker Change: And then on the donor fee and then Rahul will will comment on the biotech question.

Speaker Change: We continue working on the on the donor fee and are in mostly in two fronts.

Speaker Change: And we see we have been seeing positive evolution on within that the positive evolution will continue.

Speaker Change: First of all in the whole donor experian fried so we're working in in matters from Ms Mara compensation and and different activities to attract donor store centers and to realize them in the centers while at the same time, we're working in the rollout of the individual nomogram that AR is now.

Speaker Change: President and 60% of hours of our donor centers and we are planning to continue that or allow through the year. I mean, there's two initiatives in both France and contribute nicely to the to the to the donor fees in a way that is a win win for for Greif Olson for the doughnuts write stuff and that I think we strongly believe.

Roland Wandeler: I mean, these two initiatives in both fronts contribute nicely to the donor fees in a way that it's a win-win for Grifols and for the donors, right? So I think that we strongly believe that this has to be... in the benefit for both sides, and that's in the line that we are working for.

Speaker Change: That this has to be.

Speaker Change: And the benefit for both sides and that's in the line that we're working for on the biotech Rahul will common yeah look on the biotech side as I mentioned, a Boston have approved the delisting offer in the offer period runs through till early June.

Rahul Srinivasan: On the biotest, Rahul will comment. Yeah, look, on the biotest, as I mentioned, Boutherin have approved the delisting offer, and the offer period runs through till early June. And I'm not going to speculate on take up or not of the biotest offer. Relating to the extension of that question was if there wasn't, for whatever reason, take up on that biotest offer, would we apply that towards Hema BPC? We laid out a very clear capital allocation framework at our capital markets day that envisaged Hema BPC bringing that back within the group and making that acquisition or exercising that option during the course of probably Q2 of 2026 or thereabouts, maybe into 2027.

Speaker Change: And I'm not going to speculate on take up are not off the buyer test offer relating to your the extension of that question was if there wasn't a you know whatever for whatever reason take up on that by test offer would we apply that towards him up V. P.

Speaker Change: See we laid out a very clear capital allocation framework at our capital markets day that envisaged Ah Hey, mom B P. C are bringing that back within the group and I am making that acquisition.

Speaker Change: Or are exercising that option during the course of probably Q2 of 2026 are there or thereabouts, maybe into 2027 and that remains our plan. We were no no no change and in that respect.

Rahul Srinivasan: And that remains our plan. No change in that.

Charles Pitman: Okay. Thank you so mitra hole it seems that Charles Pitman from Barclays Buck Charles. Please go ahead with your question.

Rahul Srinivasan: Thank you so much, Rahul.

Charles Pitman: It seems that Charles Pitman from Berkeley is back. Charles, please, go ahead with your question. Hi guys, how are you? Can you hear me? Hopefully you can.

Charles Pitman: Hi, guys can you hear me.

Charles Pitman: Thanks.

Charles Pitman: Thank you.

Charles Pitman: Just first question on pricing. Can you provide detail on the pricing differential of your products in U.S. and ex-U.S. regions?

Speaker Change: Just first question on pricing can you provide detail on the pricing differential of your products in U S and ex U S regions.

Roland Wandeler: Secondly, on margins, what proportion of collected IG is being fractionated for Zembify, and what proportion of IG do you expect that to account for over time? Effectively, what do you see as the future balance between SCIG and IVIG?

Speaker Change: Secondly on margins what proportion of collection is being fractionated for Zen defy what portion of I E. Do you expect that to account for every time, it's actually what do you see as the future balance between <unk> and IV <unk> and then just finally a quick one.

Roland Wandeler: And then just finally, a quick one, can you give us any quantification of the phasing impact of the rabies on the other in specialty, e.g., you know, what was the underlying growth in Alfalfa-1? Thank you.

Speaker Change: Can you give us any quantification of the fate of the phasing impact of the rabies.

Speaker Change: The specialty AG, what was the underlying growth in alpha one thank you.

Roland Wandeler: Yes, Roland, please. Yeah, on the on the pricing differential, we will not disclose the details here. What we can say is that, you know, after the pandemic, we have seen prices actually come up in Europe and other parts of the world. And, you know, getting closer to the US and as Nacho mentioned up front, different from other many other biopharmaceutical drugs, price points are much closer in plasma-derived therapies.

Roland: Yes Roland please.

Speaker Change: Yeah on the on the pricing differential we will not disclose the details here. What we can say is that are you know off that when they make we have seen prices actually come up in Europe and other parts of the world and are getting closer to the U S. M. S. Nacho mentioned upfront.

Speaker Change: Different from other many other biopharmaceutical drugs price points are actually much closer in plasma derived therapies on the March inside you know basically the question goes at what's what's the share of Sop Q versus IV I E. A he.

Roland Wandeler: On the margin side, you know, basically the question goes at what's what's the share of sub-Q versus IVIG. Here, similarly, we don't disclose the details. I think what we can say is that we are closing in, you know, where in the past, I think we once made a statement that we were mid-single digits. I think we're closing in on high single digits at this moment with a lot of potential because from everything where we stand and the feedback that we receive, we don't see why our sub-Q share in the market would not be at the same level as our IVIG share is at the moment.

Speaker Change: Similarly, we don't disclose the details I think what we can say is that we are closing and you know where in the past I think we once made a statement that we were mid single digits. I think we are closing in on high single digits. At this moment with a lot of potential because from everything where we stand and the feedback that we receive we don't see why our Sop Q chair in the market would.

Speaker Change: Not be at the same level as our Ivy I chair share is at the moment and as Ralph mentioned, we see that we're actually growing ahead of the market in both Sop, Q and IV I T and classroom facing impact on rabies something to keep in mind is that due to the nature of rabies where exposure happens in nature. This is <unk>.

Roland Wandeler: And as Rahul mentioned, we see that we're actually growing ahead of the market in both sub-Q and IVIG.

Roland Wandeler: And lastly, on facing impact on rabies, something to keep in mind is that, you know, due to the nature of rabies, where exposure happens in nature, this is much higher in summer, Q2, Q3, than Q4, Q1. And year over year, that's where small volume differences in purchasing in a Q1 can just translate into relatively high relative differences on a year-over-year basis. Okay, thank you so much.

Much higher in summer Q2, Q3 than Q4, Q1 and year over year, that's where small volume differences in purchasing in Q1 can just translate into relatively high relative differences are on a year over year basis.

Okay. Thank you so much.

Alvaro Lenze: Roland, the next question is coming from Alvaro Lenze from Alantra. Alvaro, please. Hi, thanks for allowing me back into the queue. Two questions. I understand why the market is growing for IG, but just wanted to know if you could give us some more color on why are you outpacing the market? Is it better pricing than competitors, more product availability or better clinical outcomes? And the second question is, if you're going faster than initially budgeted, and you do not expect a negative impact from the dollar? and are quite confident on the limited or no impact from tariffs and so on, why not raise the guidance for 2025?

Speaker Change: Glenn.

Speaker Change: The next question is coming from Alberta landfill from Atlanta, a little please.

Speaker Change: Hi, Thanks for letting me back into the Q.

Speaker Change: Two questions I understand why the market is growing for you, but just wanted to know whether you could give us some more color on why are you outpacing that I get is it better pricing than competitors more product availability or better clinical outcomes.

Speaker Change: And the second question is if you're going faster than initially budgeted and expect a negative impact from the dollar.

Speaker Change: And I am quite confident on the limited or no impact from tariffs and so on.

Speaker Change: I not raise the guidance for 195.

Rahul Srinivasan: Is it that you're just being extra cautious? to get a sense of your thinking process there. Thank you. Thank you, Alvaro.

Speaker Change: Yes.

Speaker Change: Extra cautious right.

Speaker Change: To get a sense of your thinking process there. Thank you.

Speaker Change: Thank governor Rowland will take the first question and then Rahul will take on the on the guidance for the year Yeah.

Roland Wandeler: Roland will take the first question and then Rahul will take on the guidance for the year. Yeah. Alvaro, on the IG side, we believe that we're very well positioned to serve patients in this market, in this growing market, because there's more and more patients that finally do get access. As you know, these diseases are undiagnosed or undertreated. This comes from the brands that we have. Grifols has, over the last decades, developed brands that are very well received in terms of the tolerability and the efficacy results by healthcare professionals, and we are building on these brands.

Speaker Change: Oliver on the I T site, we believe that we're very well positioned to serve patients in this market and destroy market because there's more and more patients that finally do get access as you know these diseases are undiagnosed undertreated.

Speaker Change: Comps from the brands that we have Griffith has over the last decades developed brands that are very well received in terms of the tolerability and efficacy results by health care professionals and we are building on these brands. It reflects the increased focus that we have been able to bring to the market with last year.

Roland Wandeler: It reflects the increased focus that we have been able to bring to the market over the last years, where we see that, especially in the US, the growth actually is driven by end-user uptake, which is very encouraging. And so with those two, both our portfolio that we have, as well as the focus in the field, combined with our ability to supply, this puts us just in a good and strong position to benefit from the secular growth that you have in the IG side. And on your question on guidance, let me just repeat what I said on the dollar, depreciating dollar.

Speaker Change: Where we see that especially in the U S. A the growth actually is driven by end user uptake, which is very encouraging and so with those two both our portfolio that we have as well as the focus in the field combined with our ability to supply. This puts us just in a in a can.

Speaker Change: In strong position to benefit from the secular growth that you're having to actually side.

Speaker Change: And on your question on guidance, let me just repeat what I said on the dollar depreciating dollar a depreciating dollars broadly neutral to positive from our group profit leverage and free cash flow standpoint.

Rahul Srinivasan: A depreciating dollar is broadly neutral to positive from a group profit, leverage and free cash flow standpoint. Yes, a structurally weaker dollar does pose a headwind in absolute revenues and EBITDA, even if it is positive from a margin. Back to your question around why, if we're ahead of plan, why are we not raising guidance? We are in Q1. We are in the middle of a macroeconomic or tariff diplomacy that is causing the world to spin in ways that we've not imagined. And we've got violent, sometimes, currency moves. And so at this point in time, Alvaro, I think it's prudent from our standpoint to maintain guidance, and we feel pretty good about that.

Speaker Change: Yes, a structurally weaker dollar does pose a headwind and absolute revenues and EBITDA, even if it is positive from a margin standpoint back.

Speaker Change: Back to your question around why if we're ahead of plan why are we not raising guidance. We are in Q1, we are in the middle of a macroeconomic or tariff diplomacy that is causing the world to spin in in ways that we've not imagined and we got violent sometimes currency.

Speaker Change: Moves and so forth for at this point in time, although I think it's prudent from our standpoint to maintain guidance and we feel pretty good about that so I'll leave it at that for now over.

Rahul Srinivasan: So I'll leave it at that for now, Alvaro.

Rahul Srinivasan: Thank you so much, Rahul.

Speaker Change: Thank you so much Rahul.

Unknown Executive: With that we are ending the Q125 call, just to say thank you very much for having us today. Thank you.

Speaker Change: With that we are ending the Q1 'twenty five call it.

Speaker Change: Just to say, thank you very much for having us today. Thank you.

Speaker Change: [music].

Speaker Change: Yes.