Q2 2026 Grifols SA Earnings Call

Dani Segarra: Hello, everyone, and thank you for joining us today for Grifols' Q2 2026 earnings call. My name is Dani Segarra, and I serve as Head of Investor Relations & Sustainability. Today, I am joined by Grifols' Chief Executive Officer, Nacho Abia, President of Biopharma, Roland Wandeler, and Chief Financial Officer, Rahul Srinivasan. As is our usual practice, today's call will last about an hour, including the Q&A session. Please note that 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. A transcript and replay of the webcast will also be available on the Investor Relations website within 24 hours. Turning to slide two, I would like to remind everyone that forward-looking statements may be made during this call.

Speaker #1: Today I'm joined by Grifols' Chief Executive Officer, Nat Xabia; President of Biofarma, Roland Vandeler; and Chief Financial Officer, Rahul Isrinavasan. As is our usual practice, today's call will last about an hour, including the Q&A session.

Speaker #1: Please note that 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.

Speaker #1: A transcript and replay of the webcast will also be available on the Investor Relations website within 24 hours. Turning to slide 2, I would like to remind everyone that forward-looking statements may be made during this call.

Speaker #1: This may include, among other things, comments regarding the company's future operating and financial performance, statements about our future expectations, clinical developments, regulatory timelines, and the potential success of our product candidates.

Dani Segarra: This may include, among other things, comment regarding the company's future operating and financial performance, statements about our future expectation, clinical developments, regulatory timelines, and the potential success of our product candidates. These statements are based on current expectation and available information as of the date of this call and are subject to certain risks and uncertainties that may cause actual results to differ materially from those discussed today. Grifols' financial statements are prepared in accordance with EU, IFRS, and other applicable reporting provisions, including alternative performance measures or APMs, as defined by the European Securities and Markets Authority. Grifols' management uses APMs to evaluate financial performance as the basis for operational and strategic decision-making. These APMs are prepared for all the time periods presented in this document.

Speaker #1: These statements are based on current expectations and available information as of the date of this call and are subject to certain risks and uncertainties that may cause actual results to differ materially from those discussed today.

Speaker #1: Grifols financial statements are prepared in accordance with EU IFRS and other applicable reporting provisions, including alternative performance measures, or APMs, as defined by the European Securities and Markets Authority.

Speaker #1: Grifols management uses APMs to evaluate financial performance as the basis for operational and strategic decision-making. These APMs are prepared for all the time periods presented in this document.

Speaker #1: As announced, the Board of Directors has decided to initiate a process to evaluate a potential IPO of the Grifols US Biofarma business. Any such transaction remains subject to legal and regulatory requirements, internal approvals, and market conditions, among other considerations.

Dani Segarra: As announced, the board of directors has decided to initiate a process to evaluate a potential IPO of the Grifols US Biopharma business. Any such transaction remains subject to legal and regulatory requirements, internal approvals, and market conditions, among other considerations. While we are currently limited by applicable laws and regulations in what we can say, we will provide updates when appropriate. Now, moving to today's agenda, I will turn the call to Nacho to kick it off. Nacho?

Speaker #1: While we are currently limited by applicable laws and regulations in what we can say, we will provide updates when appropriate. Now, moving to today's agenda, I will turn the call over to Nacho to kick it off.

Speaker #1: Nacho?

Speaker #2: Thank you, Danny. And thank you all for joining us today. The second quarter played out in line with our expectations, allowing us to deliver a solid first half of the year and keeping us firmly on track to deliver our full-year 2026 guidance.

Nacho Abia: Thank you, Dani. Thank you all for joining us today. The Q2 played out in line with our expectations, allowing us to deliver a solid H1 and keeping us firmly on track to deliver our full year 2026 guidance. The progress we have made over the H1 reinforces our confidence as we look to the H2, not because all the work is done, but because the business continues to perform according to plan and the key levers we have put in place are delivering the results we expected. For Grifols, that confidence starts with the strength and resilience of our business model. Our integrated value chain has long been one of the defining characteristics of Grifols. It is a model built over decades with capabilities that are difficult to replicate, and that continues to differentiate Grifols.

Speaker #2: The progress we've made over the first six months reinforces our confidence as we look to the second half of the year—not because the work is done, but because the business continues to perform according to plan, and the key levers we have put in place are delivering the results we expected.

Speaker #2: For Grifols, that confidence starts with the strength and resilience of our business model. Our integrated value chain has long been one of the defining characteristics of Grifols.

Speaker #2: It is a model built over decades, with capabilities that are difficult to replicate and that continue to differentiate Grifols. Today, I would like to leave you with three key messages.

Nacho Abia: Today, I would like to leave you with three key messages. First, how to think about our H1 performance. Second, how the work we have done across our Biopharma and Diagnostic businesses continues to strengthen the long-term position of the company. Finally, why the levers that are already in place position us well to deliver on our commitment for the H2. Let me start with our performance during the H1 2026. Revenue for the H1 reached EUR 3,574 million, up 2.6% at constant currency, with Biopharma being the primary growth engine, delivering 5.4% growth, reflecting the disciplined commercial approach we have been taking across the portfolio.

Speaker #2: First, how to think about our first half performance. Second, how to work with what we have done. Across our biopharma and diagnostic business, this continues to strengthen the long-term position of the company.

Speaker #2: And finally, why the levers that are already in place position us well to deliver on our commitment for the second half. Let me start with our performance during the first six months of 2026.

Speaker #2: Revenue for the first half reached €3,574 million, up 2.6% at constant cost and currency. Biofarma was the primary growth engine, delivering 5.4% growth.

Speaker #2: Reflecting the disciplined commercial approach we have been taking across the portfolio, as we have said over the past few quarters, our goal is not to maximize volume at any price, but to drive sustainable, profitable, and free cash flow growth by focusing on the products, customers, and markets where we believe we can create the greatest value.

Nacho Abia: As we have said over the past few quarters, our goal is not to maximize volume at any price, but to drive sustainable, profitable, and free cash flow growth by focusing on the products, customers, and markets where we believe we can create the greatest value. That same discipline is visible in our profitability. Adjusted EBITDA reached EUR 472 million in the Q2, representing a margin of 25.2%. For the H1, Adjusted EBITDA reached EUR 854 million, up 2.4% year-over-year at constant currency, with a margin close to 24%. Free cash flow improved by approximately EUR 100 million during the H1, reflecting our continued focus on operational discipline, working capital management, and capital allocation. While the H2 is seasonally stronger for our business, we are encouraged by the progress already achieved and by the foundations we continue to build.

Speaker #2: That same discipline is visible in our profitability. Adjusted EBITDA reached €472 million in the second quarter, representing a margin of 25.2%. For the first half, adjusted EBITDA reached €854 million, up 2.4% year-over-year at constant cost and currency, with a margin close to 24%.

Speaker #2: Free cash flow improved by approximately €100 million during the first half, reflecting our continued focus on operational discipline, working capital management, and capital allocation.

Speaker #2: While the second half is seasonally stronger for our business, we are encouraged by the progress already achieved and by the foundations we continue to build.

Speaker #2: Beyond the financial results, operationally the company is focused on recent organizational changes designed to bring decision-making closer to our customers and markets, sharpen our commercial focus, and improve operational efficiencies in the United States and the rest of the world.

Nacho Abia: Beyond the financial results, we also continue to strengthen the company operationally. The recent organizational changes are designed to bring decision-making close to our customers and markets, sharpen our commercial focus, and improve operational efficiencies in the United States and in the Rest of World. This quarter in Diagnostics, we launched Evanzys IH, which is how we name it, the Barcelona platform. An important step for our Diagnostic business and the first of many solutions to come under the Evanzys brand name. This demonstrates how we continue to translate decades of innovation into new solutions for our customers. That commitment to building capabilities rather than pursuing short-term opportunities is also reflected in our plasma strategy. Our US collection network remains the foundation of our plasma platform. At the same time, the continued development of our projects in Egypt and Canada is creating a more diversified and resilient sourcing network.

Speaker #2: This quarter, in Diagnostics, we launched Advanced Immunohematology, which is how we name it in the Barcelona platform. An important step for our Diagnostic business and the first of many solutions to come under the Advances brand name.

Speaker #2: This demonstrates how we continue to translate decades of innovation into new solutions for our customers. That commitment to building capabilities, rather than pursuing short-term opportunities, is also reflected in our plasma strategy.

Speaker #2: Our U.S. collection network remains the foundation of our plasma platform. At the same time, the continued development of our projects in Egypt and Canada is creating a more diversified and resilient sourcing network.

Speaker #2: Egypt is much more than a new plasma collection project. It is a strategic investment in the future of our business, strengthening our ex-US plasma platform, increasing operational flexibility, and supporting sustainable growth for many years to come.

Nacho Abia: Egypt is much more than a new plasma collection project. It is a strategic investment in the future of our business, strengthening our ex-US plasma platform, increasing operational flexibility, and supporting sustainable growth for many years to come. The same discipline approach has also shaped the way we manage our balance sheet, and the refinancing completed during H1 has further strengthened our financial flexibility. Rahul will discuss this in more detail later in the presentation. Finally, on this slide, we continue to progress our evaluation and associated preparations for a potential IPO for US Biopharma business. We will provide any relevant update as appropriate, in full compliance with applicable laws and regulations. Let me now turn to Biopharma, where the work we have been doing over the recent years is becoming increasingly visible.

Speaker #2: The same disciplined approach has also shaped the way we manage our balance sheet, and the refinancing completed during the first half has further strengthened our financial flexibility.

Speaker #2: Rahul will discuss this in more detail later in the presentation. Finally, on this slide, we continue to progress our evaluation and associated preparations for a potential IPO of our US Biofarma business.

Speaker #2: We will provide any relevant updates as appropriate, in full compliance with applicable laws and regulations. Let me now turn to Biofarma, where the work we have been doing over recent years is becoming increasingly visible.

Speaker #2: Grifols holds a leading position in a large and growing biopharma market, and we continue to build on that leadership by advancing our pipeline to address evolving patient needs.

Nacho Abia: Grifols holds a leading position in a large and growing Biopharma market, we continue to build on that leadership by advancing our pipeline to address patients' evolving needs. Our IG franchise continued to deliver strong momentum, supported by strong underlying market fundamentals. As we continue to expand the approved indication of our IG portfolio, I would like to highlight our ongoing phase III clinical trials in secondary immunodeficiencies and CIDP. First, our phase III SIGMA study evaluates the efficacy and safety of Gamunex-C in combination with the standard of care treatment to prevent infections in patients with secondary antibody deficiency. Together with our EXCEL study for XEMBIFY, focused on patients with blood cancer who are at increased risk of infections, it reflects our continued investment in expanding the indication of our immunoglobulin portfolio.

Speaker #2: Our IG franchise continues to deliver strong momentum, supported by strong underlying market fundamentals. As we continue to expand the approved indications of our IG portfolio, I would like to highlight our ongoing phase 3 clinical trials in secondary immunodeficiencies and CADP.

Speaker #2: First, our phase 3 SIGMA study evaluates the efficacy and safety of Gamunex in combination with the standard of care treatment to prevent infections in patients with secondary antibody deficiency.

Speaker #2: Together with our excellent study for Shenbify, focused on patients with blood cancer who are at increased risk of infections, it reflects our continued investment in expanding the indications of our immunoglobulin portfolio.

Speaker #2: Another important phase three study in IG is EXPERT, designed to support the potential expansion of Shenbify into the treatment of CADP, offering the potential to expand treatment options for patients.

Nacho Abia: Another important phase III study in IG is XPERT, designed to support the potential expansion of XEMBIFY into the treatment of CIDP, offering the potential to expand treatment options for patients. Beyond our IG, our broader protein portfolio is progressing well. Fibrinogen for congenital indication was launched in the US as planned in Q2, and we are in the final stage discussions with the FDA to agree on the phase III trial design for the acquired indication. It will complement our European launches across both congenital and acquired indications. Our Alpha-1 pipeline remains fully on track, led by SPARTA and our 15% subcutaneous program. Roland will provide more details later about it. Our albumin clinical programs in cirrhosis continue to advance as well. Underpinning of this is our expanding self-sufficiency platform.

Speaker #2: Beyond IG, our broader protein portfolio is progressing well. Fibrinogen for congenital indication was launched in the US as planned in the second quarter, and we are in final-stage discussions with the FDA to agree on the phase 3 trial design for the acquired indication.

Speaker #2: It will complement our European launches across both congenital and acquired indications. Our Alpha-1 pipeline remains fully on track, led by Sparta and our 15% subcutaneous program.

Speaker #2: And Roland will provide more details later about it. And our albumin clinical programs in cirrhosis continue to advance as well. The underpinning of this is our expanding self-sufficiency platform.

Speaker #2: With our unique presence in the US, as well as in both Egypt and Canada, we continue to strengthen our ex-US plasma sourcing through strategic partnerships, allowing us to keep optimizing our collection footprint while maintaining consistently high quality and safety standards across the entire plasma network.

Nacho Abia: With our unique presence in the US, both Egypt and Canada continue to strengthen our ex-US plasma sourcing through strategic partnerships, allowing us to keep optimizing our collection footprint while maintaining consistently high quality and safety standards across the entire plasma network. Together, our leadership in IG, a broadening protein portfolio, and an increasingly self-sufficiency sourcing base provide a strong foundation for continued sustainable growth. Having said that, Grifols has always been more than Biopharma alone. Another important source of differentiation, and one that continues to create value for the group, is Diagnostics. Turning to slide seven, I would like to comment on the progress within Diagnostics. It remains a leading profitable and cash-generative business, built on long-standing customer relations, high barriers to entry, and mission-critical solutions embedded in our customers' daily workflows.

Speaker #2: Together, our leadership in IG, a broadening protein portfolio, and an increasingly self-sufficient sourcing base provide a strong foundation for continued, sustainable growth. Having said that, Grifols has always been more than biopharma alone.

Speaker #2: And another important source of differentiation, and one that continues to create value for the group, is diagnostics. Turning to slide seven, I would like to comment on the progress within diagnostics.

Speaker #2: It remains a leading, profitable, and cash-generative business, built on long-standing customer relations, high barriers to entry, and mission-critical solutions embedded in our customers' daily workflows.

Speaker #2: This business continues to be a complementary pillar to our Biofarma franchise, providing meaningful contributions to our overall margin profile and cash conversion. We continue to make progress across our innovation roadmap.

Nacho Abia: This business continued to be a complementary pillar to our Biopharma franchise, providing meaningful contributions to our overall margin profile and cash conversion. We continue to make progress across our innovation roadmap. The clearest milestone this quarter was the successful launch of Evanzys IH, an important step in advancing our next-generation blood typing portfolio. These platforms deliver meaningfully improved performance in a smaller modular design with a simplified workflow and reduced footprint for customers. We expect it to be a key driver in sustaining our leadership in this market segment. Alongside this, Grifols is advancing the development of its automated solutions to help laboratories simplify workflows and enhance operational efficiency. This includes our ISART immunoassay platform and our Mondaca molecular platform, both of which continue to progress as planned.

Speaker #2: The clearest milestone this quarter was the successful launch of ADVANCE IH, an important step in advancing our next-generation blood typing portfolio. This platform delivers meaningful improved performance in a smaller, modular design, with a simplified workflow and reduced footprint for customers.

Speaker #2: And we expect it to be a key driver in sustaining our leadership in this market segment. Alongside this, Grifols is advancing the development of its automated solutions to help laboratories simplify workflows and enhance operational efficiency.

Speaker #2: And this includes our ESAR ImmunoSafe platform and our Mondaca Molecular platform, both of which continue to progress as planned. ESAR, in particular, positioned us to directly target the approximately 1 billion US, and over time, to expand into a much larger clinical ImmunoSafe space.

Nacho Abia: ISART, in particular, position us to directly target the approximately $1 billion US dollar serology market then, and over time, to expand into a much larger clinical immunoassay space. Our next-generation NAAT platform, Mondaca, reinforces our leadership in blood screening while strengthening our molecular diagnostics offering. This innovation roadmap further diversifies our diagnostic revenue base, extends our reach into higher growth adjacent segments, and reinforces our strategy to build a presence across the clinical diagnostics market. Together with our ability to operate independently across these platforms, it enable us to capture more value across the diagnostic value chain while further strengthening our leadership position. Moving to slide eight, let me highlight the key levers that support our confidence and continue to deliver improvement through the H2. First, continued growth in Biopharma, driven by sustained IG momentum, continued product mix improvement, and the expected stabilization of albumin in China.

Speaker #2: Our next generation NAT platform, Mondaca, reinforces our leadership in blood screening, while strengthening our molecular diagnostics offering. This innovation roadmap further diversifies our diagnostic revenue base, extends our reach into higher-growth adjacent segments, and reinforces our strategy to build a presence across the clinical diagnostics market.

Speaker #2: Together with our ability to operate independently across these platforms, it enables us to capture more value across the diagnostic value chain, while further strengthening our leadership position.

Speaker #2: Moving to slide eight, let me highlight the key levers that support our confidence in continuing to deliver improvement through the second half. First, continued growth in Biofarma, driven by sustained IG momentum, continued product mix improvement, and the expected stabilization of albumin in China.

Speaker #2: Second, the continued ramp-up of plasma from Egypt, while enabling optimization of our US collection. Third, continued progress at Biotest, with improving manufacturing performance and stronger operational execution.

Nacho Abia: Second, the continued ramp-up of plasma from Egypt, while enabling optimization of our US collection. Third, continued progress at Biotest, with improving manufacturing performance and stronger operational execution. Fourth, further operating leverage supported by our ongoing discipline cost management across the group. Finally, continued improvement in free cash flow generation, reflected by effective working capital management, capital allocation, and continued financial discipline. The priorities we set at the beginning of the year remain unchanged. The levers supporting our guidance are already in motion and progressing as expected, and we remain laser-focused on delivering our commitments for 2026, while continuing to strengthen Grifols for the long term. Before I hand over to Roland, I would like to take a moment to recognize his contribution to Grifols. As you are aware, Roland has decided to return home to Basel in Switzerland to lead a biotechnology company.

Speaker #2: Fourth, further operating leverage, supported by our ongoing disciplined cost management across the group. And finally, continued improvement in free cash flow generation, reflected by effective working capital management, capital allocation, and continued financial discipline.

Speaker #2: The priorities we set at the beginning of the year remain unchanged. The levers supporting our guidance are already in motion and progressing as expected.

Speaker #2: And we remain laser-focused on delivering our commitments for 2026, while continuing to strengthen Grifols for the long term. Before I hand over to Roland, I would like to take a moment to recognize his contribution to Grifols.

Speaker #2: As you are aware, Roland has decided to return home to Basel, Switzerland, to lead a biotechnology company. We appreciate his leadership, his strong contribution, and his partnership.

Nacho Abia: We appreciate his leadership, his strong contribution, and his partnership. We wish him every success in his new role. We have a strong transition plan in place, supported by a highly experienced leadership team, ensuring continuity, disciplined execution, and sustained progress against our strategic objectives. Thank you, Roland, and all the best.

Speaker #2: And we wish him every success in his new role. We have a strong transition plan in place, supported by a highly experienced leadership team, ensuring continuity, disciplined execution, and sustained progress against our strategic objectives.

Speaker #2: Thank you, Roland. And all the best.

Speaker #1: Thank you, Nacho, for your kind words. It has been a privilege to contribute to Grifols' success over the last several years and to work alongside so many talented colleagues.

Roland Wandeler: Thank you, Nacho, for your kind words. It has been a privilege to contribute to Grifols' success over the last several years and to work alongside so many talented colleagues. I am incredibly proud of the dedication, passion, and commitment our teams show every day to serve patients that are counting on our medicines and advance the strategic priorities we have set for the business. Moving to slide 10, the Biopharma business performed in line with our expectations in H1, delivering 5.4% revenue growth at constant currency and reflecting the more balanced growth profile we anticipated entering the year. Growth was driven by our Ig franchise, more than offsetting temporary headwinds in albumin. Importantly, Alpha-1 and specialty proteins returned to growth in Q2, resulting in a broader base performance across the portfolio and reinforcing our confidence in the full-year outlook.

Speaker #1: I am incredibly proud of the dedication, passion, and commitment our teams show every day to serve patients who are counting on our medicines and to advance the strategic priorities we have set for the business.

Speaker #1: Moving to slide 10, the biofarma business performed in line with our expectations in the first half, delivering 5.4% revenue growth at constant currency, and reflecting the more balanced growth profile we anticipated entering the year.

Speaker #1: Growth was driven by our IG franchise, more than offsetting temporary headwinds in albumin. Importantly, Alpha-1 and specialty proteins returned to growth in the second quarter, resulting in a broader-based performance across the portfolio and reinforcing our confidence in the full-year outlook.

Speaker #1: Let me now comment on each franchise in more detail, starting with IG. Immunoglobulins remained our clear growth engine, delivering 12.8% growth at constant currency in the first half.

Roland Wandeler: Let me now comment on each franchise in more detail, starting with Ig. Immunoglobulins remained our clear growth engine, delivering 12.8% growth at constant currency in H1. Performance continued to be driven by robust demand across the US and Europe, sustained Gamunex-C momentum in our core markets, and the successful launch of Yimmugo in the US. XEMBIFY, our SCIg, also showed strong performance, growing close to 34% at constant currency in Q2. As we highlighted in our last call, the underlying in-market demand for XEMBIFY remains firmly in the double digits, and we continue to see that reflected in our performance. Looking ahead, we expect underlying demand growth for Ig to continue across our three main indications. In primary immunodeficiency, increased awareness and better diagnosis are expanding access to therapy.

Speaker #1: Performance continued to be driven by robust demand across the US and Europe, sustained government momentum in our core markets, and the successful launch of Immugo in the US.

Speaker #1: Xempify, our subcutaneous IG, also showed strong performance, growing close to 34% at constant currency in the second quarter. As we highlighted in our last call, the underlying in-market demand for Xempify remains firmly in the double digits, and we continue to see that reflected in our performance.

Speaker #1: Looking ahead, we expect underlying demand growth for IG to continue across our three main indications. In primary immunodeficiency, increased awareness and better diagnosis are expanding access to therapy.

Speaker #1: In secondary immunodeficiency, demand continues to rise in an aging population and with an increase in immunocompromised patients. And in CIDP, we also continue to see growth.

Roland Wandeler: In secondary immunodeficiency, demand continues to rise in an aging population and with an increase in immune-compromised patients. In CIDP, we also continue to see growth. Immunoglobulins, with their broad mechanism of action, remain the established first-line standard of care in this complex multifactorial disease. This is supported by extensive clinical experience, their broad immune modulatory activity, and a compelling value proposition. Recent market developments continue to reinforce the importance of maintaining effective therapy options for CIDP patients and support our confidence in the growth outlook for CIDP. Following our strong H1, we expect Ig in H2 to continue to grow mid to high single digit in the US and our European core countries, in line with the market, partly offset by deliberate lower growth in other markets. For XEMBIFY, our SCIg, we see strong momentum and expect continued strong double-digit growth.

Speaker #1: Immunoglobulins, with their broad mechanism of action, remain the established first-line standard of care in this complex, multifactorial disease. This is supported by extensive clinical experience, their broad immune modulatory activity, and a compelling value proposition.

Speaker #1: Recent market developments continue to reinforce the importance of maintaining effective therapy options for CIDP patients, and support our confidence in the growth outlook for CIDP.

Speaker #1: Following our strong first half, we expect IG in the second half to continue to grow mid to high single digits in the US and our European core countries, in line with the market, partly offset by deliberate lower growth in other markets.

Speaker #1: For Xempify, our SCIG, we see strong momentum and expect continued strong double-digit growth. Turning to albumin, the underlying market dynamics in China remain broadly unchanged from what we have been discussing in prior calls.

Roland Wandeler: Turning to albumin, the underlying market dynamics in China remain broadly unchanged from what we have been discussing in prior calls. As anticipated, H1 2026 reflects the year-on-year pricing impact in China following our mid-2025 price adjustment, with Q2 facing a particularly challenging comparison due to the post-license renewal catch-up we saw in Q2 the prior year. Our focus here remains on executing the actions we outlined, leveraging our strategic partnership with Shanghai RAAS to expand our commercial reach in China, while continuing to grow the business in the US and other international markets. Looking forward, we remain cautiously optimistic that market conditions continue to stabilize, supported by an easier comparison in our H2 of the year as we lap the pricing adjustment implemented in the middle of last year.

Speaker #1: As anticipated, the first half of 2026 reflects the year-on-year pricing impact in China following our mid-2025 price adjustment, with Q2 facing a particularly challenging comparison due to the post-license renewal catch-up we saw in Q2 the prior year.

Speaker #1: Our focus here remains on executing the actions we outlined—leveraging our strategic partnership with Shanghai RAS to expand our commercial reach in China, while continuing to grow the business in the US and other international markets.

Speaker #1: Looking forward, we remain cautiously optimistic that market conditions will continue to stabilize, supported by an easier comparison in our second half of the year as we lap the pricing adjustment implemented in the middle of last year.

Speaker #1: Together, we're increasing the weight of Egyptian plasma in our collection, which comes with high local albumin use and excess IG. We believe that Grifols is well positioned to balance albumin with IG growth over time.

Roland Wandeler: Together with the increasing weight of Egyptian plasma in our collection, which comes with high local albumin use and excess Ig, we believe that Grifols is well positioned to balance albumin with Ig growth over time. On Alpha-1 and specialty proteins, sales returned to growth in the second quarter, up 2% at constant currency. For Alpha-1, we saw higher treatment numbers in Q2 as patient access continued to improve following a challenging US reauthorization period early in the year. We continue to appropriately support healthcare professionals throughout that process for their patients, and we are encouraged by the sequential improvement we saw during the quarter. Demand for HyperRAB also remained strong as we entered the seasonally important summer period in rabies. In June, our US team launched FESILTY, our new fibrinogen concentrate for patients with congenital fibrinogen deficiency in the US, adding to our specialty proteins.

Speaker #1: On Alpha One and specialty proteins, sales returned to growth in the second quarter, up 2% at constant currency. For Alpha One, we saw higher treatment numbers in Q2, as patient access continued to improve following a challenging US reauthorization period earlier in the year.

Speaker #1: We continue to appropriately support healthcare professionals throughout that process for their patients, and we're encouraged by the sequential improvement we saw during the quarter.

Speaker #1: Demand for Hyperab also remains strong as we enter a seasonally important summer period for rabies. In June, our US team launched Fesselty, our new fibrinogen concentrate for patients with congenital fibrinogen deficiency in the US, adding to our specialty proteins.

Speaker #1: Together, the momentum we see in Alpha One and specialty proteins reinforces our confidence that this franchise will deliver growth for the full year, as we outlined at the beginning of 2026.

Roland Wandeler: Together, the momentum we see in Alpha-1 and specialty proteins reinforces our confidence that this franchise will deliver growth for the full year, as we outlined at the beginning of 2026. Turning to slide 11, I would like to spend a moment on Alpha-1. In this indication, where 85% of patients remain undiagnosed and without treatment, clinical innovation remains central to our strategy, all with the objective to continue to expand the market while further strengthening our leadership in a franchise where we are the global leader. Our SPARTA study has the potential to significantly strengthen the evidence base for augmentation therapy and thus support broader testing and diagnosis, as well as improve patient access globally. SPARTA is the most comprehensive outcome study ever conducted in Alpha-1 and the first phase III trial designed to assess preservation of lung density by CT over a 3-year period.

Speaker #1: Turning to slide 11, I would like to spend a moment on Alpha One. In this indication, where 85% of patients remain undiagnosed and without treatment, clinical innovation remains central to our strategy.

Speaker #1: All with the objective to continue to expand the market, while further strengthening our leadership in a franchise where we are the global leader. Our SPARTA study has the potential to significantly strengthen the evidence base for augmentation therapy and thus support broader testing and diagnosis, as well as improve patient access globally.

Speaker #1: SPARTA is the most comprehensive outcome study ever conducted in Alpha-1, and the first Phase 3 trial designed to assess preservation of lung density by CT over a three-year period.

Speaker #1: Importantly, the study evaluates both the current standard dose and a higher dose regimen against placebo. Positive results not only have the potential to significantly strengthen the clinical evidence supporting augmentation therapy, thereby unlocking market growth and improving access, but may also provide valuable insights into future dosing strategies.

Roland Wandeler: Importantly, the study evaluates both the current standard dose and the higher dose regimen against placebo. Positive results not only have the potential to significantly strengthen the clinical evidence supporting augmentation therapy and thus unlock market growth and improve access, but also may provide valuable insights into future dosing strategies. SPARTA's last patient last visit milestone is scheduled for August, with top-line results expected in late Q4 this year. Our second key program is Alpha-1 sub Q 15%, which entered phase III with our first patient dosed in June 2026, following our successful phase I/II study. The program has the potential to transform the patient experience by expanding treatment options through a more flexible and convenient subcutaneous formulation. Taken together, these two programs reinforce our confidence in the long-term outlook and opportunity for the Alpha-1 franchise. With approximately 85% of eligible patients still undiagnosed, significant unmet need remains.

Speaker #1: Sparta's last patient, last visit milestone is scheduled for August, with top-line results expected in late Q4 this year. Our second key program is Alpha One SubQ15%, which entered Phase 3 with our first patient dosed in June 2026, following our successful Phase 1/2 study.

Speaker #1: The program has the potential to transform the patient experience by expanding treatment options through a more flexible and convenient subcutaneous formulation. Taken together, these two programs reinforce our confidence in the long-term outlook and opportunity for the Alpha One franchise. With approximately 85% of eligible patients still undiagnosed, significant unmet need remains.

Speaker #1: By advancing the clinical evidence base and expanding treatment options, we believe we can help drive awareness, improve diagnosis, broaden patient access, and continue to grow the category, further strengthening Grifols' leadership position in Alpha One.

Roland Wandeler: By advancing the clinical evidence base and expanding treatment options, we believe we can help drive awareness, improve diagnosis, broaden patient access, and continue to grow the category, further strengthening Grifols leadership position in Alpha-1. Slide 12. As we continue to expand the long-term opportunity for our business through innovation, we are also evolving our operating model to capture that opportunity more effectively and translate it into sustainable growth and value creation. To accelerate the execution of our strategic roadmap, we are reorganizing Biopharma into two dedicated units, Biopharma US and Biopharma Rest of World, each built around its own self-sufficient operating model with dedicated leadership and clear accountability for its respective market. Biopharma US remains our scaled, fully vertically integrated end-to-end platform with two manufacturing sites and around 280 donor centers.

Speaker #1: Slide 12. As we continue to expand the long-term opportunity of our business through innovation, we are also evolving our operating model to capture that opportunity more effectively and translate it into sustainable growth and value creation.

Speaker #1: To accelerate execution of our strategic roadmap, we are reorganizing Biopharma into two dedicated units: Biopharma US and Biopharma Rest of World, each built around its own self-sufficient operating model with dedicated leadership and clear accountability for its respective market.

Speaker #1: Biopharma US remains our scaled, fully vertically integrated, end-to-end platform with two manufacturing sites and around 280 donor centers. It is set up to serve the largest and most established plasma-derived therapies market in the world, where demand is expected to grow at a continued mid- to high-single-digit rate annually.

Roland Wandeler: It is set up to serve the largest, most established plasma-derived therapies market in the world, where demand is expected to grow at a continued mid to high single-digit rate annually. Supported by our existing platform, we are well invested to support that growth and can continue to sharpen our focus on operational efficiency and portfolio expansion. Biopharma Rest of World is a distinct, increasingly self-sufficient growth platform with more than 130 donor centers and five manufacturing sites. Its priority is optimizing plasma location, increasingly supplying Europe and the rest of the markets from ex-US sources, reducing reliance on US plasma, and better aligning sourcing costs with pricing structures to optimize growth and profitability. Egypt and Canada are central to building that self-sufficiency, strengthening supply resilience and operational efficiency, while increasing patient access to our therapies.

Speaker #1: Supported by our existing platform, we are well invested to support that growth and can continue to sharpen our focus on operational efficiency and portfolio expansion.

Speaker #1: Biopharma Rest of World is a distinct, increasingly self-sufficient growth platform with more than 130 donor centers and five manufacturing sites. Its priority is optimizing plasma allocation.

Speaker #1: We are increasingly supplying Europe and the rest of the markets from ex-US plasma, and better aligning sourcing costs with pricing structures to optimize growth and profitability.

Speaker #1: Egypt and Canada are central to building that self-sufficiency, strengthening supply resilience, and operational efficiency while increasing patient access to our therapies. Organizing around these two platforms gives each business the focus, accountability, and operating flexibility to execute within its respective market dynamics.

Roland Wandeler: Organizing around these two platforms gives each business the focus, accountability, and operating flexibility to execute within its respective market dynamics. At the same time, bringing decision-making closer to each business allows us to accelerate execution while continuing to build what we believe is the industry's most resilient and highest value plasma platform. Let me close by illustrating on slide 13 how Egypt enables the next phase of our global plasma sourcing strategy and the creation of a truly self-sufficient Rest of World platform. As we explained during our Q1 call, the long-term vision behind our global plasma sourcing strategy is to increasingly supply Europe with plasma from Europe and Egypt, allowing more of our US collections to remain in the US. Beyond the economics, this diversification reduces our exposure to any single geography at a time when the geopolitical environment increasingly rewards local self-sufficiency.

Speaker #1: At the same time, bringing decision-making closer to each business allows us to accelerate execution while continuing to build what we believe is the industry's most resilient and highest-value plasma platform.

Speaker #1: Let me close by illustrating, on slide 13, how Egypt enables the next phase of our global plasma sourcing strategy and the creation of a truly self-sufficient Rest of World platform.

Speaker #1: As we explained during our Q1 call, the long-term vision behind our global plasma sourcing strategy is to increasingly supply Europe with plasma from Europe and Egypt, allowing more of our U.S. collections to remain in the U.S.

Speaker #1: Beyond the economics, this diversification reduces our exposure to any single geography at a time when the geopolitical environment increasingly rewards local self-sufficiency. By 2029, we expect total ex-US plasma collections to increase by around 2.5 times, providing sufficient supply to fully support our European and rest of world demand.

Roland Wandeler: By 2029, we expect total ex-US plasma collections to increase by around two and a half times, providing sufficient supply to fully support our European and Rest of World demand. That compares with today, where roughly 25% of US plasma collections are still needed to support sales outside the US. As that dependency unwinds, we progressively shift to a US plasma collections for US model, unlocking significant plasma supply and optimization opportunities for our Biopharma US platform to support the expected strong and growing demand in the US. Egypt is the primary driver of this shift. This year, Egypt already represents around 25% of our ex-US plasma collections, and by 2029, we expect the contribution to grow to around 50%, making Egypt our single largest ex-US source of plasma and a globally recognized plasma hub under what we call the Grifols Seal of Quality and Excellence.

Speaker #1: That compares with today, where roughly 25% of U.S. plasma collections are still needed to support sales outside the U.S. As that dependency unwinds, we will progressively shift to a U.S. plasma collections-for-U.S. model, unlocking significant plasma supply and optimization opportunities for our U.S. platform to support the expected strong and growing demand in the U.S.

Speaker #1: Egypt is the primary driver of this shift. This year, Egypt already represents around 25% of our ex-US plasma collections, and by 2029, we expect the contribution to growth to reach around 50%, making Egypt our single largest ex-US source of plasma, and a globally recognized plasma hub under what we call the Grifols Seal of Quality and Excellence.

Speaker #1: The benefit goes well beyond supply security. As Egypt becomes an increasingly meaningful part of our plasma network, it strengthens supply resilience while significantly improving the economics of our sourcing model.

Roland Wandeler: The benefit goes well beyond supply security. As Egypt becomes an increasingly meaningful part of our plasma network, it strengthens supply resilience while significantly improving the economics of our sourcing model. Together with the operational optimization undertaken across our US plasma network, these initiatives create a more resilient, more efficient, and higher value plasma network, one that strengthens supply security, supports sustainable growth, and enhances long-term profitability. With that, I will hand it over to Rahul to walk you through the financials.

Speaker #1: Together with the operational optimization undertaken across our U.S. plasma network, these initiatives create a more resilient, more efficient, and higher-value plasma network—one that strengthens supply security, supports sustainable growth, and enhances long-term profitability.

Speaker #1: With that, I will hand it over to Rahul to walk you through the financials.

Speaker #2: Thank you, Roland. Turning to slide 15—our financial highlights for Q2 and H1 26. We are pleased with our Q2 and first half performance, results that reflect the resilience and strength of this business, and the tireless efforts of our teammates across the entire group, for which we are very thankful.

Rahul Srinivasan: Thank you, Roland. Turning to slide 15, our financial highlights for Q2 and H1 2026. We are pleased with our Q2 and H1 performance, results that reflect the resilience and strength of this business and the tireless efforts of our teammates across the entire group, for which we are very thankful. Group net revenues reached EUR 1.874 billion in the Q2, bringing H1 revenues to EUR 3.574 billion, a growth of 2.6% at constant currency. As in Q1, Biopharma again grew faster than the group as a whole, up 5.4% at constant currency. This also reflects the strategic repositioning that is underway in diagnostics, and I will elaborate on it further in the following slide. Reported gross margin was 37.6% for the quarter and 37.1% for the H1. This was impacted by one-off costs, primarily related to the closure of 29 US donation centers.

Speaker #2: Group net revenues reached €1.874 billion in the second quarter, bringing first half revenues to €3.574 billion, a growth of 2.6% at constant currency.

Speaker #2: As in Q1, Biopharma again grew faster than the group as a whole, up 5.4% at constant currency. This also reflects the strategic repositioning that is underway in Diagnostics.

Speaker #2: And I will elaborate on it further in the following slide. Reported gross margin was 37.6% for the quarter, and 37.1% for the first half.

Speaker #2: This was impacted by one-off costs, primarily related to the closure of 29 U.S. donation centers. To help investors and analysts track our underlying progress, we are also disclosing gross margin, excluding these one-off costs, which came in at 39.4% for the quarter and 38.6% for the first half.

Rahul Srinivasan: To help investors and analysts track our underlying progress, we are also disclosing gross margin excluding these one-off costs, which came in at 39.4% for the quarter and 38.6% for the H1. We expect reported gross margin to continue improving in the coming quarters. Adjusted EBITDA reached EUR 472 million in the quarter and EUR 854 million for the H1, representing a 2.4% growth at constant currency, with margin for the quarter expanding to 25.2% and for the H1 to 23.9%, slightly ahead of H1 last year. Group profit in H1 increased to EUR 227 million, up 28.7% year-on-year. If we eliminated the impact of both positive and negative one-offs, the year-on-year comparison is still a strong double-digit improvement. We achieved EUR 91 million in free cash flow before M&A for the H1 of 2026, EUR 103 million year-on-year improvement.

Speaker #2: We expect reported gross margin to continue improving in the coming quarters. Adjusted EBITDA reached €472 million in the quarter, and €854 million for the first half, representing 2.4% growth at constant currency, with margin for the quarter expanding to 25.2% and for the first half to 23.9%, slightly ahead of H1 last year.

Speaker #2: Group profit in H1 increased to €227 million, up 28.7% year on year. And if we eliminated the impact of both positive and negative one-offs, the year-on-year comparison is still a strong double-digit improvement.

Speaker #2: We achieved €91 million in free cash flow before M&A for the first half of 2026, a €103 million year-on-year improvement. I will elaborate on this free cash flow performance on a subsequent slide.

Rahul Srinivasan: I will elaborate on this free cash flow performance on a subsequent slide. Total net leverage stood at slightly below 4.2x and net secured leverage at 2.7x. The mismatch between a higher average euro-dollar for the period versus lower end of period FX rate used for the balance sheet translation creates notional releveraging. Over a longer period of time, that should dissipate, consistent with our prior guidance that structural movements in euro-dollar have a broadly neutral impact on the leverage over time. Leverage remains stable, notwithstanding the FX related to releveraging in Q2, and we have EUR 2 billion of liquidity. Our balance sheet overall is in a relatively strong position. On slide 16, we summarize the net revenue performance of the business in the H1.

Speaker #2: Total net leverage stood at slightly below 4.2 times, and net secured leverage at 2.7 times. The mismatch between our higher average EUR/USD for the period versus the lower end-of-period FX rate used for the balance sheet translation creates notional re-leveraging, but over a longer period of time, that should dissipate, consistent with our prior guidance that structural movements in EUR/USD have a broadly neutral impact on leverage over time.

Speaker #2: So leverage remains stable, notwithstanding the FX-related re-leveraging in Q2, and we have $2 billion of liquidity, so our balance sheet overall is in a relatively strong position.

Speaker #2: On slide 16, we summarize the net revenue performance of the business in the first half. Biopharma remains both the bedrock as well as the growth engine of the group, and continues to benefit from strong momentum across our core markets.

Rahul Srinivasan: Biopharma remains both the bedrock as well as the growth engine of the group and continues to benefit from strong momentum across our core markets. Immunoglobulins once again delivered a double-digit growth, with SCIg returning to strong double-digit growth during the quarter and for H1, confirming that the softer Q1 performance reflected timing rather than any change in underlying demand. Alpha-1 in our specialty protein portfolio also performed well and continues to support our growth expectations for the full year. Due to the timing of the price concession for albumin in China in H2 last year, relative albumin H1 performance has been impacted. We expect the H2 albumin performance to be in line with H2 last year. At Biotest, we are encouraged by the operational turnaround progress, and we are beginning to see that also come through in the Biotest growth rate with Yimmugo sales ramping up.

Speaker #2: Immunoglobulins once again delivered double-digit growth, with sub-Q IG returning to strong double-digit growth during the quarter and for H1. This confirms that the softer first quarter performance reflected timing, rather than any change in underlying demand.

Speaker #2: Alpha One and our specialty protein portfolio also performed well and continue to support our growth expectations for the full year. Due to the timing of the price concession for albumin in China in H2 last year, relative albumin H1 performance has been impacted.

Speaker #2: We expect the H2 albumin performance to be in line with H2 last year. At BioTest, we are encouraged by the operational turnaround progress, and we are beginning to see that also come through in the BioTest growth rate, with IMUGO sales ramping up.

Speaker #2: Turning to diagnostics, the year-on-year comparison reflects the dissolution of the Quiddell Ortho joint business. However, the rest of the diagnostics business continues to post year-on-year growth.

Rahul Srinivasan: Turning to diagnostics. The year-on-year comparison reflects the dissolution of the QuidelOrtho joint business. However, the rest of the diagnostics business continues to post year-on-year growth, and the team is executing on the diagnostics repositioning plan, hitting all relevant milestones. For Biosupplies, we expect a better H2 than H1, and more broadly, we remain comfortable with the outlook for this niche business in the medium term. Within others, we have phased out a legacy contract manufacturing agreement at the end of 2025, impacting the comparison in 2026. In short, the Grifols Group portfolio continues to perform in line with our expectations for the year, with the momentum of the Biopharma business more than offsetting the planned strategic transition we're executing in diagnostics and softness in Biosupplies and others. Slide 17.

Speaker #2: And the team is executing on the diagnostics repositioning plan, hitting all relevant milestones. For biosupplies, we expect a better H2 than H1, and more broadly, we remain comfortable with the outlook for this niche business in the medium term.

Speaker #2: Among other changes, we have phased out a legacy contract manufacturing agreement at the end of 2025, impacting the comparison in 2026. In short, the Grifols Group portfolio continues to perform in line with our expectations for the year, with the momentum of the Biopharma business more than offsetting the planned strategic transition, while executing in Diagnostics and experiencing softness in Bio Supplies and others.

Speaker #2: Slide 17. The headline numbers: the 2.4% constant currency growth in group-adjusted EBITDA, the 10 basis point improvement in adjusted EBITDA margin, and Biopharma adjusted EBITDA growing by over 5% on a constant currency basis.

Rahul Srinivasan: The headline numbers, the 2.4% constant currency growth in group-adjusted EBITDA, the 10 basis points improvement in adjusted EBITDA margin, and Biopharma adjusted EBITDA growing by over 5% on a constant currency basis, all mask the underlying drivers of that outcome. I will spend some time unpicking this for you as I think the underlying drivers matter more than the headline outcome in H1. All of which support our adjusted EBITDA margin target of 25% or higher for the full year 2026. Starting with Biopharma, EBITDA growth and margin progression is supported by four structural factors. First, immunoglobulins remain the largest contributor to both revenue and profitability, benefiting from continued momentum and an increasingly favorable product and geo mix. Executing our plans in albumin and Alpha-1 and other proteins, as Roland alluded to, will support profitability.

Speaker #2: All mask the underlying drivers of that outcome. I will spend some time unpicking this for you, as I think the underlying drivers matter more than the headline outcome in H1.

Speaker #2: All of which support our adjusted EBITDA margin target of 25% or higher for the full year 2026. Starting with Biopharma, EBITDA growth and margin progression is supported by four structural factors. First, immunoglobulins remain the largest contributor to both revenue and profitability, benefiting from continued momentum and an increasingly favorable product and geo mix.

Speaker #2: Executing our plans in albumin and Alpha One, and other proteins as Rowland alluded to, will support profitability. Second, the efforts to support BioTest are yielding improvements operationally and making a growing contribution to group sales, and we expect to continue to support the IMUGO ramp-up in the coming quarters.

Rahul Srinivasan: Second, the efforts to support Biotest is yielding improvements operationally and making a growing contribution to group sales, and we expect to continue to support the Yimmugo ramp-up in the coming quarters. Third, we are in the early stages of seeing the benefits from the confluence of our self-sufficiency and plasma sourcing strategies. The continued ramp-up of EMA-approved collections in Egypt, together with the optimization of our US donor center network, is improving both unit economics and plasma economics. With the continued Biopharma momentum that we expect, these benefits should be further amplified over time by operating leverage across the business. While the EUR 40 million of one-off costs, of which EUR 25 million are non-cash, resulting from the closure of 29 US donor centers, affect this year's reported EBITDA, they support a structurally more efficient operating model going forward.

Speaker #2: Third, we are in the early stages of seeing the benefits from the confluence of our self-sufficiency and plasma sourcing strategies. The continued ramp-up of EMA-approved collections in Egypt, together with the optimization of our US donor center network, is improving both unit economics and plasma economics.

Speaker #2: And with the continued biopharma momentum that we expect, these benefits should be further amplified over time by operating leverage across the business. While the $40 million of one-off costs, of which $25 million are non-cash and result from the closure of 29 U.S. donor centers, affect this year's reported EBITDA, they support a structurally more efficient operating model going forward.

Speaker #2: And fourth, disciplined cost management, as evidenced by our OPEX evolution, remains an important contributor. Also, to round off, the albumin pricing concession in China introduced in mid-last year has been a headwind in H1 2026, and is now fully reflected in our comparable base, aiding future year-on-year comparisons of quarterly performance.

Rahul Srinivasan: Fourth, disciplined cost management, as evidenced by our OpEx evolution, remains an important contributor. Also to round out the picture, the full year effect of the albumin pricing concession in China, introduced in mid last year, has been a headwind in H1 2026 and is now fully reflected in our comparable base, aiding future year-on-year comparisons of quarterly performance. Taken together, these drivers give us confidence that the Biopharma business is well-positioned to continue delivering compelling EBITDA growth and margin progression over time. In addition, in the rest of the group, we are executing our plans and hitting all the milestones with regards to the strategic repositioning of the diagnostics business. Be it the launch of our new blood typing platform that Nacho touched on, hitting development milestones in other platforms, be it Mondaca or ISARD, as well as the strategic freedom that the QuidelOrtho dissolution gives us.

Speaker #2: Taken together, these drivers give us confidence that the Biopharma business is well-positioned to continue delivering compelling EBITDA growth and margin progression over time.

Speaker #2: In addition, in the rest of the group, we are executing our plans and hitting all the milestones with regard to the strategic repositioning of the diagnostics business—be it the launch of our new blood typing platform that Nacho touched on, hitting development milestones in other platforms, whether Mundaka or ESAD, as well as the strategic freedom that the Quiddell-Ortho dissolution gives us.

Speaker #2: We remain on course to deliver EBITDA growth and margin improvement from this repositioning of our diagnostics business over the coming years. As Nacho referenced earlier, we have the levers in place to deliver our adjusted EBITDA constant currency growth and margin guidance for 2026.

Rahul Srinivasan: We remain on course to deliver EBITDA growth and margin improvement from this repositioning of our diagnostics business over the coming years. As Nacho referenced earlier, we have the levers in place to deliver our adjusted EBITDA constant currency growth and margin guidance for 2026. On slide 18, the punchline is that we continue to progress our free cash flow generation efforts in a disciplined manner, and we remain on track to deliver our full-year free cash flow guidance. In H1, free cash flow pre-M&A was EUR +91 million, EUR 103 million better than H1 2025, having benefited from some phasing. As we have guided to in the past, while adjusted EBITDA is negatively impacted by a depreciating US dollar, the impact on free cash flow pre-M&A remains broadly neutral.

Speaker #2: On slide 18, the punchline is that we continue to progress our free cash flow generation efforts in a disciplined manner, and we remain on track to deliver our full-year free cash flow guidance.

Speaker #2: In the first half, free cash flow pre-M&A was positive €91 million, €103 million better than H1 2025, having benefited from some phasing. As we have guided to in the past, while adjusted EBITDA is negatively impacted by a depreciating US dollar, the impact on free cash flow pre-M&A remains broadly neutral.

Speaker #2: To support the continued momentum in Biopharma, and our robust outlook for H2, there has been essential investment in inventory, similar to Q1. We continue to manage our working capital diligently and responsibly.

Rahul Srinivasan: To support the continued momentum in biopharma and our robust outlook for H2, there has been essential investment in inventory similar to Q1. We continue to manage our working capital diligently and responsibly. CapEx levels are normalizing from the 2024-2025 peak. As disclosed in Q1, we were required to classify the final ImmunoTek payment made to J.P. Morgan within financing activities following guidance from our auditors. Capitalized IT R&D is slightly higher as we successfully achieve various development milestones, for example, within our diagnostics business. Finally, we balanced the refinancing of some of our cheapest debt in our capital structure earlier this year by proactively redeeming EUR 500 million of our most expensive debt, the 7.5% 2030 bonds, and thereby we expect to keep our cash interest cost levels in line with 2025.

Speaker #2: CapEx levels are normalizing from the 2024–2025 peak, and as disclosed in Q1, we were required to classify the final ImmunoTech payment made to J.P. Morgan within financing activities following guidance from our auditors.

Speaker #2: Capitalized IT R&D is slightly higher, as we successfully achieved various development milestones, for example, within our diagnostics business. And finally, we balanced the refinancing of some of our cheapest debt in our capital structure earlier this year by proactively redeeming €500 million of our most expensive debt, the 7.5% 2030 bonds. In doing so, we expect to keep our cash interest cost levels in line with 2025.

Speaker #2: In conclusion, our free cash flow trajectory is progressing as planned, aligned with the typical seasonal patterns of the business, and we remain on track to deliver our full-year guidance.

Rahul Srinivasan: In conclusion, our free cash flow trajectory is progressing as planned, aligned with the typical seasonal patterns of the business. We remain on track to deliver our full-year guidance. Finally, turning to slide 19. I will repeat myself when I say that our balance sheet is in a really good place. No meaningful maturities for a while. Almost all the debt in the capital structure is either callable or can be repaid at par, allowing the company to optimize its cash interest cost at any point if it so chooses. Strong support from institutional credit investors and banks, and rating agencies fully acknowledging the resilience of the business, the progress that has been made, and the proactive actions we have taken to considerably improve our balance sheet. With very strong liquidity levels of over EUR 2 billion, it offers significant downside protection and financial flexibility.

Speaker #2: Finally, turning to slide 19. I will repeat myself when I say that our balance sheet is in a really good place. No meaningful maturities for a while, and almost all the debt in the capital structure is either callable or can be repaid at par, allowing the company to optimize its cash interest cost at any point if it so chooses.

Speaker #2: Strong support from institutional credit investors and banks, and rating agencies fully acknowledging the resilience of the business, the progress that has been made, and the proactive actions we have taken to considerably improve our balance sheet.

Speaker #2: With very strong liquidity levels of over $2 billion, it offers significant downside protection and financial flexibility. Despite refinancing the very cheap debt earlier this year, we remain on course to maintain our 2025 cash interest cost, and, in the status quo scenario, we remain committed to continuing to delever organically, given the momentum of our Biopharma business and the strong progress we are making in the strategic repositioning of our Diagnostics business.

Rahul Srinivasan: Despite refinancing the very cheap debt earlier this year, we remain on course to maintain our 2025 cash interest costs. In the status quo scenario, we remain committed to continuing to delever organically, given the momentum of our biopharma business and the strong progress we are making in the strategic repositioning of our diagnostics business. With that, let me hand it back to Nacho to conclude the presentation.

Speaker #2: With that, let me hand it back to Nacho to conclude the presentation.

Speaker #1: Thank you, Rahul. I would like to conclude today's presentation with a few final remarks. Our first-half performance reinforces our confidence that we are on track to deliver our 2026 objectives.

Nacho Abia: Thank you, Rahul. I would like to conclude today's presentation with a few final remarks. Our H1 performance reinforces our confidence that we are on track to deliver our 2026 objectives. The sustained strength of our immunoglobulin franchise continues to underpin our growth. While we expect albumin performance in China to stabilize in the H2, supporting a more balanced contribution across our protein portfolio. At the same time, our expanding Alpha-1 clinical pipeline continues to strengthen that franchise and reinforces our long-term growth opportunities. Biotest also continues to make progress in its turnaround, contributing to a stronger performance at Biopharma. We also currently continue to make meaningful progress on our key strategic priorities. Egypt and our broader self-sufficiency platform remain a key differentiator and value drivers, structurally improving our cost structure and progressively reducing our reliance on US plasma.

Speaker #1: The sustained strength of our immunoglobulin franchise continues to underpin our growth. While we expect albumin performance in China to stabilize in the second half, supporting a more balanced contribution across our protein portfolio.

Speaker #1: At the same time, our expanding Alpha-1 clinical pipeline continues to strengthen that franchise and reinforces our long-term growth opportunities. BioTest also continues to make progress in its turnaround, contributing to a stronger performance at Biopharma.

Speaker #1: We also continue to make meaningful progress on our key strategic priorities. Egypt and our broader self-sufficiency platform remain key differentiators and value drivers.

Speaker #1: Structural improvement in our cost structure, and progressively reducing our reliance on US plasma—together, these initiatives support top-line growth and margin expansion, which remain key priorities for 2026 and onwards.

Nacho Abia: Together, these initiatives support the top-line growth and margin expansion that remains a key priority for 2026 and onwards. Across our business, we continue to strengthen the foundations for long-term growth through innovation, discipline, and consistent execution, with multiple key milestones across Biopharma and Diagnostics. These efforts continue to enhance the resilience of our business and position Grifols to capture attractive growth opportunity in the years ahead. As Rahul outlined, we have also continued to strengthen our financial profile, delivering further EBITDA growth, meaningful free cash flow improvement, and the successful completion of our refinancing, positioning us well to continue reducing leverage over time. Collectively, these actions are building a stronger, more efficient, more disciplined, and increasingly cash generative company, reinforcing our confidence in delivering our full-year guidance while creating long-term value.

Speaker #1: Across our business, we continue to strengthen the foundations for long-term growth through innovation, discipline, and consistent execution, with multiple key milestones across Biopharma and Diagnostics.

Speaker #1: These efforts continue to enhance the resilience of our business and position Grifols to capture attractive growth opportunities in the years ahead. As Rahul outlined, we have also continued to strengthen our financial profile, delivering further EBITDA growth, meaningful free cash flow improvement, and the successful completion of our refinancing.

Speaker #1: Positioning us well to continue reducing leverage over time. Collectively, these actions are building a stronger, more efficient, more disciplined, and increasingly cash-generative company—reinforcing our confidence in delivering our full-year guidance while creating long-term value.

Speaker #1: As we move forward, our focus remains clear: deliver on our commitments, further strengthen our financial profile, and unlock the full value of Grifols for all our stakeholders.

Nacho Abia: As we move forward, our focus remains clear: deliver on our commitments, further strengthening our financial profile, and unlocking the full value of Grifols for all our stakeholders. As always, I like to finish by thanking our employees, donors, customers, partners, and shareholders for their continued trust and support. We look forward to updating you on our progress next quarter. With that, I'll return it over back to you, Dani.

Speaker #1: As always, I would like to finish by thanking our employees, donors, customers, partners, and shareholders for their continued trust and support. We look forward to updating you on our progress next quarter.

Speaker #1: And with that, I'll turn it back over to you, Danny.

Speaker #2: Thank you. Now, let's turn to the Q&A session. Please remember to press star 5 to ask a question. We need to place a limit of two questions per analyst.

Dani Segarra: Thank you. Now let's turn to the Q&A session. Please remember to press star five to ask a question. We need to place a limit of two questions per analyst. If you have follow-ups, please dial star five again to get back on the list. Our first question today is coming from Charles Pitman-King from Barclays. Charles, please go ahead.

Speaker #2: If you have follow-ups, please dial star 5 again to get back on the list. Our first question today is coming from Charles Pidman from Barclays.

Speaker #2: Charles, please go ahead.

Speaker #3: Hi, guys. Charles Pidman here from Barclays. Thanks so much for taking my questions, and congrats on moving into the next role. Thanks for all your help over the past few years.

Operator: Hi, guys. Charles Pitman-King from Barclays. Thanks so much for taking my questions, and congrats, Roland, on the next role. Thanks for all your help over the past few years. Maybe two questions from me, please. Starting with Roland. With CIDP, you mentioned recent market developments reinforce the importance for maintaining effective therapy options for CIDP patients. I was wondering, could you elaborate on this? When you say IG remains the preferred first-line treatment, can you just provide any detail around whether that preferred market share you're seeing is declining at all in the face of competition, or whether new entrants are just growing the market, and therefore that's why you remain confident in the continued growth you referenced?

Speaker #3: Maybe two questions from me, please, starting with Roland. With CADP, you mentioned recent market developments reinforcing the importance of maintaining effective therapy options for CADP patients.

Speaker #3: I was wondering, could you elaborate on this? And when you say IG remains the preferred first-line treatment, could you provide any detail around whether that preferred market share you're seeing is declining at all in the face of competition, or whether new entrants are just growing the market, and therefore that's why you remain confident in the continued growth you referenced?

Speaker #3: And then secondly, for Rahul, with respect to Egypt, and thinking about the margin development and lead times of plasma that are usually on a lag, can you just remind us when we are expecting to see the benefit of Egypt's plasma coming through our margins, and also when we're expecting to see the benefit of the US center closure announced over the quarter?

Operator: Secondly, for Rahul, with respect to Egypt and thinking about the margin development and lead times of plasma that are usually on a lag, can you just remind us when we are expecting to see the benefit of Egypt's plasma coming through on margins? Also when we expect to see the benefit of the US center closure announce over the quarter. Thank you.

Speaker #3: Thank you.

Speaker #1: Yeah, Charles, well, thank you for your wishes, and happy to comment on CADP. In a way, about two years into the launch of FCRNs, we see that there's more and more real-life experience out there, looking at patients that switched, and switched back, and you may have seen that some of the label language on the FCRN side was updated to reflect some of these data. What we hear back from our thought leaders and from the physicians that we speak with is that, in their mind, FCRNs are a fantastic therapy for myasthenia gravis and have a very important role there, changing lives, and obviously a great addition for every neurologist. But if they look at CADP and multifactorial disease, they just say it's a disease that is pretty destined for a broad mechanism of action like the one that they see from IGs.

Roland Wandeler: Yeah, Charles. Well, thank you for your wishes, and happy to comment on CIDP. With about two years into the launch of FcRNs, we see that there's more and more real-life experience out there looking at patients that switched and switched back. You may have seen that some of the label language on the FcRN side was updated to reflect some of these data. What we hear back from our thought leaders and from the physicians that we speak with is that in their mind, FcRNs are a fantastic therapy for myasthenia gravis and have a very important role there changing lives and obviously a great addition for every neurologist. If they look at CIDP, a multifactorial disease, they just say it's a disease that is predestined for a broad mechanism action like the one that they see from IGs.

Speaker #1: Given what they have in terms of payer access, and from what we hear back from physicians, this is where they want to start.

Roland Wandeler: Given with what they have in terms of payer access, and what we hear back from physicians is that this is where they want to start their patients, and they want to be very thoughtful which patients they transition over. Having said that, at the same time, they're of course happy that there's other treatment options for any patients that do not do so well. If we look at the numbers, what we see is that in looking at the demand in the beginning of this year, that IGs continue to grow in CIDP, our brand continues to grow in CIDP.

Speaker #1: Their patients, and they want to be very thoughtful about which patients they transition over. Having said that, at the same time, they're of course happy that there are other treatment options for any patients that do not do so well.

Speaker #1: And if we look at the numbers, what we see is that, in looking at the demand in the beginning of this year, IGs continue to grow in CADP, our brand continues to grow in CADP, and, yeah, so we expect that overall what we're seeing in this class is that more patients get to benefit in later lines, which is, at the end of the day, good for patients, but it also supports fully the confidence that we have in the continued growth outlook for IG in this class.

Roland Wandeler: Yeah, we expect that overall what we're seeing in this class is that more patients get the benefit in later lines, which is at the end of the day good for patients, but it also supports fully the confidence that we have in the continued growth outlook for IG in this class.

Speaker #4: And on your second question, Charles—Egypt—we're beginning to see some of the impact of Egypt come through in our numbers. Obviously, that ramps up as the year progresses.

Rahul Srinivasan: On your second question, Charles, Egypt, we're beginning to see some of the impact of Egypt come through in our numbers. Obviously, that ramps up as the year progresses, and you will see the full impact of the EUR 1 million, certainly as you go into 2027. You will see that come through in our numbers then. Similarly, for the US center closures, you will see the impact or the benefit of that coming through towards the back end of this year, early next year as well, and through our numbers.

Speaker #4: And you will see the full impact of the $1 million certainly as you go into 2027. You will see that come through in our numbers then.

Speaker #4: Similarly, for the US center closures, you will see the impact or the benefit of that coming through towards the back end of this year, early next year as well, and through our numbers.

Speaker #3: All right.

Dani Segarra: All right. Thank you, Rahul. Thank you, Charles. Now is the time for Joaquín from JB Capital. Joaquín, please.

Speaker #2: Thank you, Rahul. Thank you, Charles. Now is the time for Joaquin from GB Capital. Joaquin, please.

Speaker #5: Yes, thank you for taking my questions. The first one is regarding the albumin market in China. You mentioned that prices have stabilized, but I remember that in the first quarter you said that the number of patients was increasing.

[Analyst] (JB Capital Markets): Yes, thank you for taking my questions. The first one is regarding the albumin in China. You mentioned that prices have stabilized, but I remember that in Q1, you said that the number of patients was increasing. Has that remained the same during Q2? Then, earlier in the year, you pointed towards a strategy of slowing down IG in order to balance albumin and IG. IG has continued to grow at a very decent rate. I know you mentioned it will slow down a bit in H2, but still, it will be ahead of what I was expecting, and I think a lot of people. Has the strategy changed, or did you find another way to balance albumin and IG? If you can talk a little bit about that. Thank you.

Speaker #5: Has that remained the same during the second quarter? And then, earlier in the year, you pointed towards a strategy of slowing down IG in order to balance albumin and IG, but IG has continued to grow at a very decent rate.

Speaker #5: I know you mentioned it will slow down a bit in the second half of the year, but still, it will be ahead of what I was expecting, and I think a lot of people were expecting as well.

Speaker #5: So, has the strategy changed, or did you find another way to balance albumin and IG? If you can talk a little bit about that, thank you.

Speaker #1: Well, Joaquin, thank you. On albumin in China, what we focus on in this market, of course, is end-user prescription and demand. This is where we commented that we see signals of stabilization, both in terms of price with our customers as well as prescriptions and pull-through.

Roland Wandeler: Well, Joaquín, thank you. On Alpha-1 in China, what we focus on in this market, of course, is end user prescription and demand. This is where we commented that we see signals of stabilization, both in terms of price with our customers as well as prescriptions and pull-through. In this market, we saw that in Q1, we continue to see this at the moment. Having said that, it is a market that had an impact of the government measures, as you know. We had this reflected in our price adjustment mid-last year, but since then have experienced ourselves a stabilization and are cautiously optimistic that we can build from there.

Speaker #1: In this market, we saw that in Q1, and we continue to see this at the moment. Having said that, it's a market that had an impact from the government measures. As you know, we had this reflected in our price adjustment mid-last year, but since then we have experienced stabilization and are cautiously optimistic that we can build from there.

Speaker #1: And on IG, I can just perhaps clarify that for IG, we have a twofold strategy, which is that we want to continue to grow with the market in the US and our core European markets, and selectively dial back on purpose in lower margin markets.

Roland Wandeler: On IG, I can just perhaps clearly clarify that for IG, we have a twofold strategy, which is that we want to continue to grow with the market in the US and our core European markets, and selectively dial back on purpose in lower margin markets. That is what you see panning out. Basically what you see reflected is strong, continued demand in our core markets and in the US. You will indeed see that over time, that the phase out in these lower margin markets will come through later this year. Rahul, if you want to add to that.

Speaker #1: And that's what you see panning out. So basically, what you see reflected is strong, continued demand in our core markets and in the U.S., and you will indeed see that over time, the phase-out in these lower-margin markets will come through later this year.

Speaker #1: But Rahul, if you want to.

Speaker #4: Nothing further to add. I think it captures it well as well on page 10, Joaquin, in terms of our outlook for H2 26, where we're guiding to mid- to high-single-digit growth in core markets.

Rahul Srinivasan: Nothing further to add. I think it captures it well as well on page 10, Joaquín, in terms of our outlook for H2 2026, where we are guiding to mid-to-high single-digit growth in core markets. Could we grow IG more? Sure. I think it is a deliberate strategy to optimize the mix between growth and margin improvement, and that remains our focus.

Speaker #4: Could we grow IG more? Sure, but I think it's a deliberate strategy to optimize the mix between growth and margin improvement, and that remains our focus.

Speaker #1: And just to add here that, I mean, at the end, what we try to do is a smart growth strategy, really focusing on the customers, the regions, and the products that will provide the better margin position.

Nacho Abia: Just to add here that, at the end, what we try to do is a smart growth strategy and really focusing the customers, the regions, and the products that will provide the better margin position. That is what XEMBIFY, you see that it will continue growing and continue grow very strong because we are building our position in the market where in IG, we have already well established. I think that our strategy will continue growing. Certainly, we believe in IG and we believe in the strong demand of IG in the markets. We will do it in a smart way, and certainly, betting on those places, customers, and regions which can offer better profitability.

Speaker #1: That's why you see that it will continue growing and continue to grow very strongly, because we are building our position in the market where we're in. In IBIG, we are already well established.

Speaker #1: So, I think that our strategy will continue growing. I mean, certainly we believe in IG, and we believe in the— I mean, in the strong demand for IG in the markets, but we will do it in a smart way and, certainly, I mean, betting on those places, customers, and regions which can offer better profitability.

Speaker #2: Thank you. Thank you, Joaquin. Now it's the turn of Guilherme Sampaio from CaixaBank. Guilherme, please.

[Analyst] (JB Capital Markets): Thank you.

Dani Segarra: Thank you, Joaquín. It's turn of Guilherme Sampaio from CaixaBank. Guilherme, please.

Speaker #5: Yes, good morning. Thank you for taking my questions, and thank you all for this—years. So first question on free cash flow: you've reached the year-on-year improvement in free cash flow implied in the top end of your guidance already in H1.

Guilherme Sampaio: Yes. Good morning. Thank you for taking my questions, and thank you, Roland, for this year. First question on free cash flow. You've reached the year-on-year improvement in free cash flow implied in the top end of your guidance already in H1. Is there any factor that we should take into consideration that's preventing you from raising the free cash flow guidance at this stage? The EUR 25 million Quidel compensation due to the JV termination. I think it was scheduled to be paid this quarter. Just if you can confirm that it was paid or not, and if it was accrued in a certain way in the P&L or not. You mentioned some phasing, if you can quantify the phasing around the free cash flow this quarter. The second question is regarding the execution risk.

Speaker #5: Is there any factor that we should take into consideration that's preventing you from raising the free cash flow guidance at this stage? And the 25 million KD as compensation due to the GV termination—I think it was scheduled to be paid this quarter.

Speaker #5: Just if you can confirm that it was paid or not, and if it was accrued in a certain way in the P&L or not.

Speaker #5: And you mentioned some phasing. If you can quantify the phasing around the free cash flow this quarter. And the second question is regarding the execution risk.

Speaker #5: So, there's been some market rumors that you might have certain execution risks in the ramp-up of your donor centers in Egypt. What kind of comfort or color could you provide regarding this?

Guilherme Sampaio: There's been in the market some rumors that you might have certain execution risks in the ramp-up of your donor centers in Egypt. What kind of comfort or color could you provide regarding this? Thank you.

Speaker #5: Thank you.

Speaker #4: Why don't I take the first one, and I'll start with the second one as well, and if either Roland or Nacho want to add, they can do so.

Rahul Srinivasan: Why don't I take the first one, and I'll start with the second one as well, and if either Roland or Nacho want to add, they can do so. On the first one, Guilherme, around free cash flow, I did reference phasing deliberately so that you don't just take EUR 103 million and add it to the EUR 467 million we delivered last year and say, we're at EUR 570. There are phasing aspects of it. You've mentioned some of it. Quidel is also an aspect that is reflected in there. We remain very much in the guidance of the EUR 500 to 575 free cash flow pre-M&A for the full year. As you think about execution risks, look, we remain confident about the ramp-up in Egypt. If ever you're in Egypt and you walk past our centers, you will see that they are packed non-stop.

Speaker #4: On the first one, Guilherme, regarding free cash flow, I did reference phasing—deliberately—so that you don't just take $103 million and add it to the $467 million.

Speaker #4: We delivered last year and said, hey, we're at 570. There are phasing aspects of it, and you've mentioned some of them. Q2 is also an aspect that is reflected in there.

Speaker #4: And we remain very much in the guidance of the $500 million to $575 million free cash flow preeminent for the full year. As you think about execution risks—look, we remain confident about the ramp-up in Egypt.

Speaker #4: If you're ever in Egypt and you walk past our centers, you will see that they are packed nonstop. And this is only the first wave of donor center openings.

Rahul Srinivasan: This is only the first wave of donor center opening. Things are going very well, and we don't anticipate any execution risks with our ramp-up. We'll have to obviously optimize it, which is why we say 1 million in 2026, ramping up to 3 million by 2029. I'll leave it at that.

Speaker #4: So things are going very well there, and we don't anticipate any execution risks with that ramp-up. We'll have to obviously optimize it, which is why we say 1 million in 2026, ramping up to up to 3 million by 2029.

Speaker #4: I'll leave it at that.

Speaker #2: And just to add, I don't know what rumors you referred to—we haven't heard any rumors. I actually think the execution in Egypt is working very well.

Nacho Abia: Just to add, I don't know what rumors you refer to. We haven't heard any rumors. I actually think the execution in Egypt is working very well. We are very much on plan and on track to build the 20 donor centers that we wanted to build. As Rahul said, those donor centers are packed, and we have tons of donors waiting to donate, and we're already working into planning for the next centers that will be built over the next year. I think it's working very well as planned, and we have no notion of execution risk other than obviously we'll keep continuously in our attention, we'll keep focusing on that.

Speaker #2: We are very much on plan and on track to build the 20 donor centers that we wanted to build. As Rahul said, those donor centers are packed.

Speaker #2: And we have tons of donors waiting to donate, and we're already working on planning for the next centers that will be built over the next year.

Speaker #2: So, I think it's working very well as planned, and we have no notion of execution risk, other than, obviously, we'll keep it continuously in our attention.

Speaker #2: We'll keep focusing on that.

Speaker #5: Thank you, Rahul, and thank you, Nacho. Now let's move to Morgan Stanley. Thibault, please. Yes, thank you. Rahul, maybe just a clarification. I think I heard you say that the albumin outlook for H2 would be in line with H2 last year.

Dani Segarra: Thank you, Rahul, and thank you, Nacho. Now let's move to Morgan Stanley. Thibault, please.

[Company Representative] (Morgan Stanley): Yes, thank you. Rahul, maybe just a clarification. I think I heard you say that the albumin outlook for H2 would be in line with H2 last year. Just if you could confirm this and if you meant in absolute terms or in terms of decline rates basically versus H2 last year. That's the first question. Also on albumin, if you could give us any idea of the growth ex China of the albumin franchise, if you're seeing some growth in H1, just so we better forecast when we sort of get out of the China base effect. Second question on Biotest. Turnaround of Biotest has been definitely a driver of margin for the business. How far are you on the story of turning around this business? Can it continue to be a driver for margin in the next few years?

Speaker #5: Just if you could confirm this, and if you meant in absolute terms or in terms of decline rates—basically versus H2 last year. That's the first question.

Speaker #5: And also on albumin, if you could give us any idea of the growth X China of the albumin franchise, if you're seeing if you're seeing some growth in H1, just so we sort of better forecast when we sort of get out of the China base effect.

Speaker #5: And then, second question on Biotest. So, the turnaround of Biotest has definitely been a driver of margin for the business. How far are you on the story of turning around this business?

Speaker #5: Can it continue to be a driver for margin in the next few years, or are you mostly through the improvement here? Thank you.

[Company Representative] (Morgan Stanley): Are you mostly through the improvement here? Thank you.

Speaker #4: Yeah. Let me start with what I said on albumin. What I was referencing was the absolute level for Q2, rather than the growth rate.

Rahul Srinivasan: Let me start with what I said on albumin, where what I was referencing was the absolute level for H2 rather than the growth rate. Please don't reflect any draconian scenarios, the absolute level, because remember, the price concession was provided in mid last year, so that's why the absolute level is the right benchmark. Just in terms of growth ex China, I'll let Roland pick that up in a second. Let me answer your question on Biotest in the meantime. On Biotest, the operational turnaround is commencing now. We have a lot of runway on this topic, and we expect to make considerable progress in the coming quarters, and certainly it's a key part of the value driver going out through to 2029. On the albumin ex China, Roland, do you want to pick that up?

Speaker #4: So please don't reflect any draconian scenarios. The absolute level—because remember, the price concession was provided in mid-last year—so that's why the absolute level is the right benchmark.

Speaker #4: Just in terms of growth ex-China, I'll let Roland pick that up in a second. Let me answer your question on Biotest in the meantime.

Speaker #4: On Biotest, the operational turnaround is commencing now. We have a lot of runway on this topic, and we expect to make considerable progress in the coming quarters.

Speaker #4: And certainly, it's a key part of the value driver going out through 2029. But on the albumin X China, Roland, do you want to pick that up?

Speaker #2: On the albumin X China, I would differentiate there the US, where we see high interest in our albumin in. Factory, one of only two providers that offers that, and where we're actively working to increase our supply for this differentiated presentation.

Roland Wandeler: On the albumin ex China, I would differentiate there the US where we see high interest in our albumin in bags, where we're one of only two providers that offers that, and where we're actively working to increase our supply for this differentiated presentation. In the other markets, ex China, ex US, yes, in H1 we've seen good growth. We're not disclosing the detailed growth number, but we've seen good growth in H1 of this year. Just to perhaps provide context there, as you may recall, in the past we have been prioritizing China, and we discussed that we have opportunities in these other markets. The team has been executing against that, and think that's behind the growth that we see.

Speaker #2: And in the other markets, ex-China, ex-US, yes, in the first half we've seen good growth. We're not disclosing the detailed growth number, but we've seen good growth in the first half of this year.

Speaker #2: And just to perhaps provide context there—as you may recall, in the past we have been prioritizing China, and we discussed that we have opportunities in these other markets.

Speaker #2: The team has been executing against that. I think that's behind the growth that we see.

Speaker #4: Thank you so much,

Dani Segarra: Thank you so much, Roland. Let's move to the next question. Jaime Escribano from Santander. Jaime, please go ahead.

Speaker #5: Roland, let's move to the next question. Jaime Escribano from Santander. Jaime, please go ahead. Hi, good afternoon. Thank you. First of all, thank you and good luck to Roland.

Jaime Escribano Mayans: Hi. Good afternoon. Thank you. Yeah, first of all, thank you and good luck to Roland. My first question would be on diagnostics. On diagnostics, after breaking the JV with Ortho, just thinking out loud, can you elaborate a little bit on what new opportunities come in terms of selling the reagents to other customers and so on, from 2027 onwards? The second question would be regarding net finances, which in Q2 look quite low. I do not know if you have answered that, Rahul, but just if you can elaborate a little bit further. Thank you.

Speaker #5: My first question would be on diagnostics. So, on diagnostics, after breaking the JV with Ortho—just thinking out loud—can you elaborate a little bit on what new opportunities come in terms of selling the reagents to other customers, and so on?

Speaker #5: From 2027 onwards, I mean. And the second question would be regarding net finances, which in Q2 look quite low. I don't know if you have answered that, Rahul, but just if you can elaborate a little bit further.

Speaker #5: Thank you. Thank you, Jaime. And let me explain about the diagnostic question. I mean, essentially, the collaboration with QuidelOrtho has been a very good collaboration for Grifols and QuidelOrtho over many years.

Nacho Abia: Yeah. Thank you, Jaime. Let me explain about the diagnostic question. Essentially, the collaboration with QuidelOrtho has been a very good collaboration for Grifols and QuidelOrtho over many years. This was coming to an end for a number of reasons. Specifically to your question about what this will provide, I think probably the most important benefit of this termination is actually the fact that it will open the possibilities for us that once the ISART platform of immunoassays will be ready, we will be able to access that market without restrictions. This is a EUR 1 billion market opportunity. It is a very significant opportunity. Of course, there is some opportunities in the factory that was serving those reagents. We will continue looking for customers and even providing QuidelOrtho with some supply.

Speaker #5: But this was coming to an end for a number of reasons. But specifically to your question about what this will provide, I think probably the most important benefit of this termination is actually the fact that it will open the possibilities for us that, once the start platform immune assays are ready, we will be able to access that market without restrictions.

Speaker #5: This is a $1 billion market opportunity. It's a very significant opportunity. Of course, there are some opportunities in our factory that was serving those reagents.

Speaker #5: We will continue looking for customers and even providing Quidel Ortho with some suppliers. We have some supply agreements with them. But the largest opportunity that will unveil is certainly the access to the immunoassays market once their platform will be ready, around 2030 or 2031.

Nacho Abia: We have some supply agreements with them, but the largest opportunity that it will unveil is certainly the access to the immunoassays market once the ISART platform will be ready around 2030, 2031. For the second one, Rahul?

Speaker #2: And for the second one, Rahul?

Speaker #4: Yeah. Net financials, Jaime. That's the impact of IFRS 9 as a result of the refinancing we did earlier this year. And that's one of the reasons why I've spent a lot more time focusing on cash interest costs.

Rahul Srinivasan: Yeah, net financials, Jaime, that's the impact of IFRS 9 as a result of the refinancing we did earlier this year. That's one of the reasons why I've spent a lot more time focusing on cash interest costs. Cash is cash, and you're not exposed to the vagaries of accounting treatment. IFRS 9 requires us to do a present value calculation as a result of the refinancing, and that resulted in this one-time gain. I alluded to that when I talked about the one-time gains as well as the one-time costs impacting our net income. That's what it refers to. The cash interest cost number that's going through our free cash flow, that's real cash, so that remains our area of focus.

Speaker #4: Cash is cash. And there's no you're not exposed to the vague reason of accounting treatment. So IFRS 9 requires us to do a present value calculation as a result of the as a result of the refinancing.

Speaker #4: And that resulted in this one-time gain. I alluded to that when I talked about the one-time gains, as well as the one-time costs impacting our net income.

Speaker #4: That's what it refers to. But the cash interest cost number that's going through our free cash flow, obviously, that's just—that's real cash.

Speaker #4: So, that remains our area of focus.

Speaker #2: Thank you so much, Rahul.

Dani Segarra: Thank you so much, Rahul. Thank you so much, Jaime. Let's move to the next question. Juan Ros from ODDO BHF. Juan, please go ahead.

Speaker #5: Thank you so much, Jaime. Let's move to the next question. Juan Ros from Oro. Juan, please go ahead.

Speaker #6: Hello, good afternoon. Thank you for taking my questions—two, please. First of all, earlier this year, CSL reduced its 2026 guidance for IG in the U.S. by around $300 million.

Juan Ros Padilla: Hello, good afternoon. Thank you for taking my questions too, please. First of all, earlier this year, CSL reduced its 2026 guidance for IG in the US by around $300 million. They were citing excess channel inventory. Could you please reconcile this with your current IG growth in the US market? Maybe you're experiencing different dynamics or you're gaining market share. Is it a matter of price? Maybe you can illustrate us in that sense, please. Second, regarding the gross margin, your adjusted gross margin fell 90 basis points this quarter. Maybe could you provide us some more color on the moving parts, what's China doing, what's IG mix, what's pricing, what's CPL, FX? Maybe you can help us a little bit with that. Thank you.

Speaker #6: They were saying they were signing excess channel inventory. So, could you please reconcile these with your current IG growth in the US market? And maybe share your experience with different dynamics or if you're gaining market share?

Speaker #6: Is it a matter of price? Maybe you can illustrate that for us, please. And second, regarding the gross margin, your adjusted gross margin fell 90 basis points this quarter.

Speaker #6: So maybe could you provide us with some more color on the moving parts? What’s China albumin, what’s IG mix, what’s pricing, what’s CPL, FX—maybe you can help us a little bit with that.

Speaker #6: Thank you.

Speaker #3: Yeah. Thank you. Thank you, Juan. I mean, first of all, we don't comment on our competitors' messages in the market. Obviously, they explain their story as they wish.

Nacho Abia: Yeah. Thank you, Juan. First of all, we don't comment on our competitors' messages in the market. Obviously they explain their story as they wish. We can comment only about what we see, and what we see in the US market, and not only in the US, but in the rest of the world, is a continued strong demand of immunoglobulins. I think that the high single-digit demand is there for IV. In our case, obviously, the subcutaneous formulation is growing very fast because we started late and we are very quickly gaining market share. Our positive view is based on what we see, and that is what is driving our results as well. I don't know, Roland, you want to complement this?

Speaker #3: We can comment only about what we see, and what we see in the US market—and not only in the US, but in the rest of the world—is a continued strong demand for immunoglobulins.

Speaker #3: I think that the highest single-digit demand is there for IV. And in our case, obviously, the subcutaneous formulation is growing very fast because we started late, and we are very quickly gaining market share.

Speaker #3: But our positive view is based on what we see, and based on that, this is what is driving our results as well. I don't know, Roland, if you want to complement this?

Speaker #2: No, just to emphasize that the results you see, that we presented today for the US, are all fully demand-driven. So these are patients receiving medicines, and we're looking at wholesale inventory levels that were roughly stable around this period, in the first half of the year.

Roland Wandeler: No, just to emphasize that the results that you see that we presented today for the US are all fully demand-driven. These are patients receiving medicines and looking at wholesale inventory levels that were roughly stable around this period in H1. All demand-driven, as Nacho says.

Speaker #2: So, all demand driven, as Natural says.

Speaker #5: And Juan, I think your question relates to gross. I think you're making reference to, on page 15, the 38.6% adjusted. And I think you're comparing it to the 39.1% in Q1 25.

Rahul Srinivasan: Juan, I think your question relates to gross. I think you're making reference to, on page 15, the 38.6% adjusted, and I think you're comparing it to the 39.1% in H1 2025. Have I got your question right?

Speaker #5: Have I got your question right? Okay. Yeah. So, look, I think as you said, there are a number of constituent parts. I'm not going to break out the various constituent parts.

Juan Ros Padilla: Correct.

Rahul Srinivasan: Okay. Yeah. Look, I think as you said, there are a number of constituent parts. I'm not going to break out the various constituent parts, but let me walk you through some of those constituent parts. I talked about price and geo mix being supportive. I talked about plasma costs being supportive from a CPL standpoint. We have the beginning of Egypt ramp-up coming through. Those are all supportive from an adjusted gross margin standpoint. The negatives, we talked about the restructuring as you identified as well, the restructuring of the plasma centers. That's a significant number. That's EUR 40 million, of which EUR 25 million is non-cash. Then we also talked about Bio Supplies and others lagging compared to 2025.

Speaker #5: But let me walk you through some of those constituent parts. When I talked about price and geo mix being supportive, I talked about plasma costs being supportive from a CPL standpoint.

Speaker #5: We have the beginning of the Egypt ramp-up coming through. Those are all supportive of, from an adjusted gross margin standpoint. The negatives—we talked about the restructuring, as you identified as well—the restructuring of the plasma centers.

Speaker #5: That's a significant number, right? That's $40 million, of which $25 million is non-cash. And then we also talked about 'buy supplies' and others being a lagging effect compared to 2025.

Speaker #5: So those are the key drivers of the difference between the 38.6 on an adjusted basis, as well as the 30, or actually the 37.1 and the 39.1.

Rahul Srinivasan: Those are the key drivers of the difference between the 38.6% on an adjusted basis as well as the 37.1% and the 39.1%, and that's why we've included the 38.6% to help make the comparison better. Also remember, H1 last year, we didn't have the impact of the albumin price. The albumin price concession only came through in mid last year. That's one of the key drivers impacting comparability between H1 2026 and H1 2025. Hopefully that is comprehensive in our response.

Speaker #5: And that's why we've included the 38.6 to help make the comparison better. Also, remember in H1 last year, we didn't have albumin, the impact of the albumin price.

Speaker #5: That only came through—the albumin price concession only came through—in mid last year. So that's one of the key drivers impacting comparability between H1'26 and H1'25.

Speaker #5: So hopefully, that is comprehensive in our response. Thank you so much, Rahul. As we're close to the hour, let's take the very last question from Charlie at Bank of America. Charlie, please.

Dani Segarra: Thank you so much, Rahul. As we are close to the hour, let's take the very last question from Charlie, Bank of America. Charlie, please.

Speaker #7: Hi, Charlie Hayward, Bank of America. Thanks for taking the question. It's on the Sparta F1 trial with data into the year. Could you frame your confidence in the outcome trial given the data you've seen to date and any expectations for the 120 mg or the 60 mg dose?

Charles Pitman-King: Hi, Charlie here with Bank of America. Thanks for taking the question. It's on the SPARTA-AF1 trial with data end of the year. Could you frame your confidence in the outcome trial given the data you've seen to date and any expectations for the 120mg or the 60mg dose? If you do see a dose response, do you expect to see any patient shift to the higher dose, and how much upside could that offer? Then second question on that is, if you do see a dose response, do you see a risk. You effectively validate the competitor's thesis for its regulatory pathway that higher trough AAT levels correlates to better clinical outcomes, and how do you assess that? Thank you.

Speaker #7: And if you do see a dose response, do you expect to see any patients shift to the higher dose, and how much upside could that offer?

Speaker #7: And then, second question on that is, if you do see a dose response, do you see a risk that you effectively validate the competitor thesis for its regulatory pathway—that higher trough AOT levels correlate to better clinical outcomes?

Speaker #7: And how do you assess that? Thank you.

Speaker #2: Charlie, happy to speak about Sparta. As mentioned, we have the last patient last visit in August. And, obviously, right now all the data is blinded.

Roland Wandeler: Charlie, happy to speak about SPARTA. As mentioned, we have the last patient last visit in August. Obviously, right now, all the data is blinded, so we haven't seen the data. After that patient last visit, we'll have the database lock, the cleaning of data, and as soon as we have the data available and the analysis done, of course, that's where we publish our top-line data. We all look forward to it. What we do know is that the SPARTA study was designed with all the insights of prior studies, and specifically, the treatment window was extended from 2 years in prior studies to 3 years to give enough time for the preservation of lung tissue to actually come through. We're obviously very confident in the thesis that made SPARTA possible and in the way that the team executed.

Speaker #2: So, we haven't seen the data. After that patient's last visit, we'll have the database locked and the data cleaned. As soon as we have the data available and the analysis done, of course, that's when we publish our top-line data.

Speaker #2: We all look forward to it. What we do know is that the SPARTA study was designed with all the insights of prior studies, and specifically, the treatment window was extended from two years in prior studies to three years, to give enough time for the preservation of lung tissue to actually come through.

Speaker #2: So we're obviously very confident in the thesis that made the Sparta possible, and in the way that the team executed. We know that opinion leaders are very much looking forward to seeing this study.

Roland Wandeler: We know that opinion leaders are very much looking forward to seeing this study. In that sense, opinion leaders are also very much looking forward to seeing the results between the 60mg and the 120mg dose. Now, having said that, the study is initially not powered for that. It's powered to look at the outcomes, which is a key part for us to show preservation of lung function in these patients. As it comes to upside, I think what it would mean is that the results will guide physicians in their daily practice. As, again, physicians are very much looking forward to looking at this data, and once we have the data, we'll be able to comment more in response to that.

Speaker #2: In that sense, opinion leaders are also very much looking forward to seeing the results between the 60 and the 120 milligram dose. Now, having said that, the study is initially not powered for that.

Speaker #2: It's important to look at the outcomes, which is a key part for us to show preservation of lung function in these patients. And as it comes to upside, I think what it would mean is that the results will guide physicians in their daily practice.

Speaker #2: And again, physicians are very much looking forward to reviewing this data. Once we have the data, we'll be able to comment further in response to that.

Speaker #5: I think the question the second question was just around competitor validation. I think outcomes data versus augmentation levels I think is a key is a key differentiator that Sparta brings us, particularly as you think about some of the payer pressures and so on and so forth.

Rahul Srinivasan: I think the second question was just around competitor validation. I think outcomes data versus augmentation levels, I think, is a key differentiator that SPARTA brings us, particularly as you think about some of the payer pressures and so on and so forth. It sets us up in a much better position. I think as we said all along, we are ready to compete. SPARTA is certainly a part of that, and we look forward to sharing the data as soon as it's available.

Speaker #5: I mean, it sets us up in a much better position. So we as I think as we said, we've said all along, we're ready to compete.

Speaker #5: Sparta is certainly a part of that, and we look forward to sharing the data as soon as it's available. Thank you so much. I said that was the last question for today.

Dani Segarra: Okay. Thank you so much. I say that was the last question for today. Thank you for joining us today and especially for your time during this busy reporting week. We look forward to speaking with you again next quarter. Thank you so much.

Speaker #5: Thank you for joining us today, and especially for your time during this busy reporting week. We look forward to speaking with you again next quarter.