Grifols reinforces its long-term and sustainable growth strategy with EUR 1,400 million in capital investments in 2018-2022

Barcelona, May 24, 2019.- Grifols (MCE: GRF, MCE: GRF.P y NASDAQ: GRFS) today announced plans to allocate EUR 1,400 to capital investments over the 2018-2022 period. Sixty-six percent (66%) will be allotted to the Bioscience Division, 10% to the Diagnostic Division and 3% to the Hospital Division. The company's manufacturing facilities in Spain will receive more than EUR 300 million.

In his address to the general shareholders' meeting, Grifols' co-CEO Víctor Grífols Deu highlighted the company's positive performance. "Grifols' management in 2018 supports our model of long-term sustainable growth. We reached the strategic objectives set for the year and carried out new investments that will strengthen our corporate growth in the coming years."

Grifols' management in 2018 led to operational growth in all divisions and regions, increasing revenues to EUR 4,487 million (+9.2% cc²). The company further consolidated its global leadership by expanding and diversifying its access to plasma. The company operated 256 centers in the U.S. and Europe at December 31, enabling it to effectively meet the demand of plasma-derived medicines and provide treatment options for patients. Meanwhile, the strategic alliance agreement reached with Shanghai RAAS will promote the group's expansion in China, a country with significant potential growth for all Grifols' divisions¹. 

Innovation remains a key priority. As a pioneer group in research and development, Grifols has invested more than EUR 1,370 million in R+D+i projects over the last five years, including the AMBAR (Alzheimer Management by Albumin Replacement) clinical trial against Alzheimer's. AMBAR results released so far show improvement in patients in both mild and moderate stages of the disease following treatment.

Grifols' co-CEO Raimon Grífols Roura underscored the vital role of its global talent pool: "In 2018, we expanded our workforce by 16% to 21,230 employees, of which 59% are women. These figures reflect our commitment to job creation and equal opportunity. Our initiatives are enabling us to gradually decrease the gender pay gap and promote talent by increasing the number of annual training hours."

Grifols celebrated its General Shareholders' Meeting on second call. The meeting convened 668 shareholders, who hold 338.871.496 Tranche A shares and represent 79.5% of stock capital with voting rights. The votes delegated to the Board represented 50% of share capital, confirming shareholder support of the Group's management and business plan. 

Grifols will distribute 40% of the group's net consolidated profit among its shareholders

Grifols' shareholders approved a dividend payout of EUR 239 million (EUR 0.35 gross per share) against 2018 earnings. This total includes the preferred dividend of EUR 0.01 gross associated with each Tranche B share. 

The dividend will be distributed in two payments: an interim dividend of EUR 0.20 gross per share, paid in December 2018, and a second payment of EUR 0.15 gross per share, which will be distributed³ from June 11, 2019 onwards. 

The company maintains its payout of 40% of the group's consolidated net profits.

Corporate Responsibility Report

Grifols presented the 2018 Corporate Responsibility Report, approved by the Board of Directors on April 26, 2019, during the general shareholders' meeting as part of its ongoing commitment to transparency.

The report aims to provide an accurate picture of the company's social, environmental and economic performance in 2018 in alignment with Grifols Corporate Social Responsibility Policy.

The Corporate Responsibility Report follows the guidelines and recommendations of the Global Reporting Initiative (GRI) and was verified by an external independent firm. 

Approval of agenda items

Key agenda items ratified by the shareholders include:

• Approval of the individual and consolidated annual accounts, including a consolidated non-financial information statement
• Re-election of auditors
• Appointment of Enriqueta Felip Font as an independent advisor in replacement of Anna Veiga, who has served in the same capacity for closely maximum duration allowed (12 years); re-election of Raimon Grífols Roura, Tomás Dagá Gelabert, Carina Szpilka Lázaro and Íñigo Sánchez-Asiaín Mardones as board members.
• Various amendments to bylaws and regulations pertaining to remote voting at general shareholders' meetings
• Approval of the Annual Compensation of the Board in an advisory capacity

¹ The transaction is pending approval by the U.S. and Chinese authorities. It is expected to close during the last quarter of 2019.
² Operative or constant currency (cc) excludes exchange rate variations reported in the period.
³ Carried out though Iberclear and its participating entities, with BBVA acting as the payment agent.