Grifols S.A.

Annual / Quarterly Financial Statement • Feb 26, 2021

DECLARACIÓN DE RESPONSABILIDAD

INFORME FINANCIERO ANUAL

De conformidad con lo dispuesto en el artículo 8.1.b del Real Decreto 1362/2007, de 19 de octubre, los consejeros de Grifols, S.A. (la "Sociedad")

DECLARAN DECLARE

Bajo su responsabilidad que, hasta donde alcanza su conocimiento, las cuentas anuales del ejercicio cerrado a 31 de diciembre de 2020, elaboradas con arreglo a los principios de contabilidad aplicables, ofrecen la imagen fiel del patrimonio, de la situación financiera y de los resultados de la Sociedad y que el informe de gestión incluye un análisis fiel de la evolución y los resultados empresariales y de la posición de la Sociedad, junto con la descripción de los principales riesgos e incertidumbres a que se enfrentan.

En Barcelona, a 19 de febrero 2021 In Barcelona, on 19 February 2021

DECLARATION OF RESPONSIBILITY

ANNUAL FINANCIAL REPORT

Pursuant to the provisions of article 8.1.b of Royal Decree 1362/2007, of 19 October, the directors of Grifols, S.A. (the "Company")

On their own responsibility that, to the Best of their knowledge, the annual accounts for the fiscal year ended on 31 December 2020, prepared in accordance with applicable accounting standards, give a fair view of the net worth, financial situation and results of the Company and that the director's report contains an accurate analysis of the evolution, business results and position of the Company, together with a description of the main risks and uncertainties which they face.

Victor Grifols Roura	Raimon Grifols Roura	Víctor Grifols Deu
Chairman	Board Member	Board Member
Ramón Riera Roca	Thomas Glanzmann	Tomás Dagá Gelabert
Board member	Board Member	Board member
Carina Szpilka Lázaro	Íñigo Sánchez-Asiaín	Marla E. Salmon
Board member	Mardones	Board member
	Board member

Enriqueta Felip Font Board member

James Costos Board member Steven F. Mayer Board member

Belén Villalonga Morenés Board member

Núria Martín Barnés Secretary

Audit Report on Grifols, S.A.

(Together with the annual accounts and directors' report of Grifols, S.A. for the year ended 31 December 2020)

Independent Auditor's Report on the Annual Accounts

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

To the Shareholders of Grifols, S.A.

REPORT ON THE ANNUAL ACCOUNTS

Opinion _________________________________________________________________

We have audited the annual accounts of Grifols, S.A. (the "Company"), which comprise the balance sheet at 31 December 2020, and the income statement, statement of changes in equity and statement of cash flows for the year then ended, and notes.

In our opinion, the accompanying annual accounts give a true and fair view, in all material respects, of the equity and financial position of the Company at 31 December 2020, and of its financial performance and its cash flows for the year then ended in accordance with the applicable financial reporting framework (specified in note 2 to the accompanying annual accounts) and, in particular, with the accounting principles and criteria set forth therein.

Basis for Opinion ________________________________________________________

We conducted our audit in accordance with prevailing legislation regulating the audit of accounts in Spain. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Annual Accounts section of our report.

We are independent of the Company in accordance with the ethical requirements, including those regarding independence, that are relevant to our audit of the annual accounts in Spain pursuant to the legislation regulating the audit of accounts. We have not provided any non-audit services, nor have any situations or circumstances arisen which, under the aforementioned regulations, have affected the required independence such that this has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

KPMG Auditores, S.L. Torre Realia, Plaça d'Europa, 41-43, 08908 L'Hospitalet de Llobregat (Barcelona)

Grant Thornton, S.L.P., Sociedad Unipersonal, Avda. Diagonal, 615, 10ª- 08028 Barcelona

Barcelona · Bilbao · Castellón · Madrid · Málaga · Murcia · Pamplona · Valencia ·

Domicilio social: Pso. de la Castellana, 81, 11 - 28046 Madrid

Domicilio social: Paseo de la Castellana, 259C – Torre de Cristal - 28046 Madrid KPMG Auditores S.L., a limited liability Spanish company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Vigo Zaragoza

Reg. Mer Madrid, T. 11.961, F. 90, Sec. 8, H. M -188.007, Inscrip. 9. Tax identification number (NIF): B-78510153

RM de Madrid T. 36.652, H M-657.409, F. 159 N.I.F. B-08914830

Miembro de Grant Thornton International Ltd

Key Audit Matters ________________________________________________________

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the annual accounts for the current period. These matters were addressed in the context of our audit of the annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

2

Recoverable Amount of Investments in Group and Associated Companies See notes 4 and 12 to the annual accounts

Key Audit Matters

How the Matter was Addressed in Our Audit

As described in the notes to the annual accounts, at 31 December 2020 the Company has recognised non-current investments in Group and Associated companies and associates totaling Euros 3.947.509 thousand. The Company performs an annual assessment of the existence of objective evidence of impairment of investments in Group and Associated companies and estimates the recoverable amount at reporting date of those entities for which objective evidence of impairment exist. The recoverable amount of these investments is determined by applying valuation techniques that require the Directors' judgement and the use of assumptions and estimates. Due to the uncertainty and judgement associated with these assumptions and estimates, as well as the significance of the carrying amount of the investments in Group and Associated companies, we have considered this valuation as a key audit matter.

Our audit procedures comprised the following: • assessing the design and implementation of key controls established by the Company with respect to the process of estimating the recoverable amount of investments in Group and Associated companies, • the evaluation of criteria used by the Company to assess the existence of objective evidence of impairment of the value of investments in Group and Associated companies identified by the Company. • assessing the reasonableness of the methodology and assumptions used by the Company in estimating the recoverable amount of investments in Group and Associated companies, in collaboration with our valuation specialists. We have compared the cash flow forecasts estimated in prior years with actual flows obtained by the investees. We have also performed for 5 investments an analysis of the sensitivity of the estimates of recoverable amount to relevant assumptions and judgements, such as the discount rate, expected future growth rate and future cash flows. We have also assessed whether the disclosures in the annual accounts meet requirements of the financial reporting framework applicable to the Company.

3

Other Information. Directors' Report ______________________________________

Other information solely comprises the 2020 Directors' Report, the preparation of which is the responsibility of the Company's Directors and which does not form an integral part of the annual accounts.

Our audit opinion on the annual accounts does not encompass the directors' report. Our responsibility regarding the information contained in the directors' report is defined in the legislation regulating the audit of accounts, as follows:

• a) Determine, solely, whether the non-financial information statement and certain information included in the Annual Corporate Governance Report, as specified in the Spanish Audit Law, have been provided in the manner stipulated in the applicable legislation, and if not, to report on this matter.
• b) Assess and report on the consistency of the rest of the information included in the directors' report with the annual accounts, based on knowledge of the entity obtained during the audit of the aforementioned annual accounts. Also, assess and report on whether the content and presentation of this part of the directors' report are in accordance with applicable legislation. If, based on the work we have performed, we conclude that there are material misstatements, we are required to report them.

Based on the work carried out, as described above, we have observed that the information mentioned in section a) above has been provided in the manner stipulated in the applicable legislation, that the rest of the information contained in the directors' report is consistent with that disclosed in the annual accounts for 2020, and that the content and presentation of the report are in accordance with applicable legislation.

Directors' and Audit Committee's Responsibility for the Annual Accounts

The Directors are responsible for the preparation of the accompanying annual accounts in such a way that they give a true and fair view of the equity, financial position and financial performance of the Company in accordance with the financial reporting framework applicable to the entity in Spain, and for such internal control as they determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

The audit committee is responsible for overseeing the preparation and presentation of the annual accounts.

Auditor's Responsibilities for the Audit of the Annual Accounts _____________

Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

4

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with prevailing legislation regulating the audit of accounts in Spain will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these annual accounts.

As part of an audit in accordance with prevailing legislation regulating the audit of accounts in Spain, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, and not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves a true and fair view.

5

We communicate with the audit committee of Grifols, S.A. regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the entity's audit committee with a statement that we have complied with the applicable ethical requirements, including those regarding independence, and to communicate with them all matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated to the audit committee of the entity, we determine those that were of most significance in the audit of the annual accounts of the current period and which are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

European Single Electronic Format ________________________________________

We have examined the digital file of Grifols, S.A. for 2020 in European Single Electronic Format (ESEF) comprising an XHTML file with the annual accounts for the aforementioned year, which will form part of the annual financial report.

The Directors of Grifols, S.A. are responsible for the presentation of the 2020 annual report in accordance with the format requirements stipulated in Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 (hereinafter the "ESEF Regulation"). For these purposes, they have incorporated the Annual Corporate Governance Report by reference in the Directors' Report.

Our responsibility consists of examining the digital file prepared by the Company's Directors, in accordance with prevailing legislation regulating the audit of accounts in Spain. This legislation requires that we plan and perform our audit procedures to determine whether the content of the annual accounts included in the digital file fully corresponds to the annual accounts we have audited, and whether the annual accounts have been formatted, in all material respects, in accordance with the requirements of the ESEF Regulation.

In our opinion, the digital file examined fully corresponds to the audited annual accounts, and these are presented, in all material respects, in accordance with the requirements of the ESEF Regulation.

Additional Report to the Audit Committee _________________________________

The opinion expressed in this report is consistent with our additional report to the Company's audit committee dated 25 February 2021.

Contract Period __________________________________________________________

At their ordinary general meeting held on 9 October 2020, the shareholders appointed us as auditors for the year ended 31 December 2020.

6

Previously, KPMG Auditores, S.L. was appointed for a period of three years from 31 July 1990 to 1992, by consensus of the shareholders at their general meeting, and have been auditing the annual accounts since the year ended 31 July 1990. Grant Thornton, S.L.P. Sociedad Unipersonal was appointed by consensus of the shareholders at their ordinary general meeting as auditor of the annual accounts for the year ended 31 December 2017, and have been auditing the annual accounts since the year ended 31 December 2017.

Entered in the Spanish Official Register Entered in the Spanish Official Register of Auditors (R.O.A.C.) with number S0702 of Auditors (R.O.A.C.) with number S0231

KPMG Auditores, S.L. Grant Thornton, S.L.P. Sociedad Unipersonal

David Hernanz Sayans Carlos Villabona de la Fuente Entered in the Spanish Official Register Entered in the Spanish Official Register

(Signed on the original in Spanish) (Signed on the original in Spanish)

of Auditors (R.O.A.C.) with number 20236 of Auditors (R.O.A.C.) with number 12720

25 February 2021 25 February 2021

Annual Accounts and Directors' Report for the year

31 December 2020

(With Independent Auditor's Report Thereon)

Balance Sheets

31 December 2020

(Expressed in Euros)

Assets	Note	2020	2019
Intangible assets	Note 5	20,231,217	16,925,512
Computer softw are		19,731,217	16,425,512
Advances		500,000	500,000
Property, plant and equipment	Note 6	39,957,793	25,115,955
Land and buildings		11,414,639	--
Technical installations, machinery, equipment, furniture and other items		22,476,390	15,210,413
Under construction and advances		6,066,764	9,905,542
Investment property	Note 7	69,055,961	58,903,680
Land		19,460,278	7,465,329
Buildings		42,200,213	41,169,859
Investments in adaptation and advances		7,395,470	10,268,492
Non-current investments in Group companies and associates		11,349,309,365	9,616,420,817
Equity instruments	Note 12	3,947,509,365	2,400,917,024
Loans to companies	Note 14	7,401,800,000	7,215,503,793
Non-current investments	Note 14	2,672,610	1,641,525
Equity instruments		1,120,792	--
Other financial assets		1,551,818	1,641,525
Deferred tax assets	Note 21	18,129,741	16,717,390
Total non-current assets		11,499,356,687	9,735,724,879
Inventories		8,132,874	7,354,373
Raw materials and other short term supplies		8,132,874	7,354,373
Trade and other receivables	Note 14	70,662,377	58,278,228
Trade receivables – current		1,838,664	2,636,448
Trade receivables from Group companies and associates – current	Note 23	41,297,482	45,736,628
Other receivables		119,451	337,758
Personnel		207,916	178,293
Current tax assets	Note 21	11,967,075	5,681,793
Public entities, other	Note 21	15,231,789	3,707,308
Current investments in Group companies and associates	Note 14	164,475,733	36,946,301
Loans to group companies and associates		164,475,733	36,946,301
Current investments	Note 14	9,813,585	1,727,432,880
Other financial assets		9,813,585	1,727,432,880
Prepayments for current assets	Note 15	10,275,381	20,862,230
Cash and cash equivalents		2,522,520	2,243,907
Cash		2,522,520	2,243,907
Total current assets		265,882,470	1,853,117,919
Total assets		11,765,239,157	11,588,842,798

Balance Sheets

31 December 2020

(Expressed in Euros)

Equity and Liabilities	Note	2020	2019
Capital and reserves	Note 16	3,064,013,040	3,117,088,705
Capital
Registered capital		119,603,705	119,603,705
Share premium		910,727,619	910,727,619
Reserves
Legal and statutory reserves		23,920,741	23,920,741
Other reserves		1,974,866,890	606,485,037
(Treasury stock and equity holdings)		(43,734,492)	(49,584,141)
Profit for the year		64,748,232	1,630,265,591
(Interim dividend)		--	(136,827,971)
Other equity instruments		13,880,345	12,498,124
Valuation adjustments		52,194,967	1,325,574
Valuation adjustments available for sale		52,194,967	1,325,574
Grants, donations and bequests received		91,116	101,832
Total equity		3,116,299,123	3,118,516,111
Non-current payables	Note 19	4,102,783,710	4,139,883,126
Promissory notes		2,644,914,563	2,644,914,563
Loans and borrow ings		1,456,022,801	1,491,826,997
Finance lease payables	Note 8	1,057,963	1,827,205
Other financial liabilities		788,383	1,314,361
Group companies and associates, non-current	Note 19	4,364,424,049	4,113,720,823
Deferred tax liabilities	Note 21	1,217,288	1,444,100
Total non-current liabilities		8,468,425,047	8,255,048,049
Current payables	Note 19	66,051,758	45,033,795
Promissory notes		13,102,778	3,255,873
Loans and borrow ings		50,605,796	23,676,514
Finance lease payables	Note 8	1,055,848	968,316
Other financial liabilities		1,287,336	17,133,092
Group companies and associates, current	Note 19	43,289,273	35,285,923
Trade and other payables	Note 19	71,173,956	134,958,920
Current payables to suppliers		49,710,843	49,579,887
Suppliers, Group companies and associates, current	Note 23	12,402,101	51,028,984
Personnel (salaries payable)		6,154,302	11,108,123
Public entities, other	Note 21	2,906,710	23,241,926
Total current liabilities		180,514,987	215,278,638
Total equity and liabilities		11,765,239,157	11,588,842,798

GRIFOLS, S.A. Statement of Profit and Loss for the year ended 31 December 2020

(Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Note	2020	2019
Revenues	Note 24	556,123,621	1,969,511,412
Sales	Note 12	--	807,651,582
Services rendered		160,386,424	135,580,670
Finance income	Note 13 and 23	230,509,859	72,454,130
Dividends		165,227,338	953,825,030
Self-constructed assets		4,653,851	3,202,422
Supplies		(6,564,825)	(4,315,201)
Raw materials and consumables used	Note 24	(6,009,662)	(4,453,868)
Impairment of merchandise, raw materials and other supplies		(555,163)	138,667
Other operating income		6,013,915	6,288,070
Non-trading and other operating income		5,892,191	6,176,251
Operating grants taken to income		121,724	111,819
Personnel expenses		(67,164,470)	(68,918,972)
Salaries and w ages		(54,228,521)	(55,992,202)
Employee benefits expense	Note 24	(12,853,214)	(12,647,346)
Provisions	Note 24	(82,735)	(279,424)
Other operating expenses		(169,789,628)	(140,959,849)
External services		(167,605,649)	(139,716,025)
Taxes		(593,095)	(43,752)
Other operating expenses		(1,590,884)	(1,200,072)
Amortisation and depreciation	Notes 5, 6 and 7	(13,620,793)	(12,609,622)
Non-financial and other capital grants		14,289	14,289
Impairment and losses on disposal of fixed assets		(7,245,940)	(2,446,435)
Impairment and losses	Note 12	(7,245,528)	(2,240,733)
Losses on disposal and other		(412)	(205,702)
Results from operating activities		302,420,020	1,749,766,114
Finance income		434,521	804,810
From marketable securities and other financial instruments
Other third parties	Note 13	2,649	3,783
Capitalised borrow ing costs	Note 6	431,872	801,027
Finance costs	Note 18	(275,338,111)	(162,487,055)
Group companies and associates	Note 23	(165,761,961)	(100,006,175)
Other third parties		(109,576,150)	(62,480,880)
Exchange losses	Notes 14 and 19	4,747,968	(4,529,708)
Net finance cost		(270,155,622)	(166,211,953)
Profit before income tax		32,264,398	1,583,554,161
Income tax	Note 21	32,483,834	46,711,430
Profit for the year		64,748,232	1,630,265,591

GRIFOLS, S.A. Statement of Profit and Loss for the year ended 31 December 2020

(Expressed in Euros)

Note	2020	2019
Profit for the year	64,748,232	1,630,265,591
Income and expense recognised directly in equity
From valuation of financial instruments
Financial assets available for sale	50,869,393	1,325,574
Total income and expense recognised directly in equity	50,869,393	1,325,574
Amounts transferred to the income statement
Grants, donations and bequests Tax effect	(14,289) 3,572	(14,289) 3,572
Total amounts transferred to the income statement	(10,717)	(10,717)
Total recognised income and expense	115,606,908	1,631,580,448

Statements of Changes in Equity for the years ended 31 December 2020

B) Statement of Total Changes in Equity for the year ended 31 December 2020

(Expressed in Euros)

	Re ist ed g er ita l ca p	Sh are ium pr em	Re se rve s	Tr ea su ry sto ck	Pr ofi t fo r t he ye ar	Int im er div ide nd	Ot he ity r e qu ins tru nts me	Va lua tio n ad jus tm ts en ail ab le fo av r le sa	Gr ts an , do tio d na ns an be ts qu es ive d re ce	To tal
Ba lan at 31 De mb 20 19 ce ce er	11 9, 60 3, 70 5	91 0, 72 7, 61 9	63 0, 40 5, 77 8	( 49 58 4, 14 1) ,	1, 63 0, 26 5, 59 1	( 13 6, 82 7, 97 1)	12 49 8, 124 ,	1, 32 5, 57 4	10 1, 83 2	3, 11 8, 51 6, 11 1
Re ise d in d e co gn co me an xp en se	--	--	--	--	64 74 8, 23 2 ,	--	--	50 86 9, 39 3 ,	( 10 71 6) ,	11 60 6, 90 9 5,
Tra tio ith sh ho lde ns ac ns w are rs or ow ne rs
Ne t m t in tre st k ov em en as ury oc	--	--	--	5, 84 9, 64 9	--	--	--	--	--	5, 84 9, 64 9
Re icte d s ha lan (n 16 ) str ote re p	--	--	1, 48 3, 47 5	--	--	--	1, 38 2, 22 1	--	--	2, 86 69 6 5,
Re se rve s	--	--	1, 49 3, 43 7, 62 0	--	( 0) 1, 49 3, 43 7, 62	--	--	--	--	--
Div ide nd s	--	--	( 113 23 0, 42 9) ,	--	( 136 82 97 1) 7, ,	136 82 97 1 7, ,	--	--	--	( 11 3, 23 0, 42 9)
Oth nts er mo ve me	--	--	( 13 30 8, 81 3) ,	--	--	--	--	--	--	( 13 30 8, 81 3) ,
Ba lan at 31 De mb 20 20 ce ce er	11 9, 60 3, 70 5	91 0, 72 7, 61 9	1, 99 8, 78 7, 63 1	( 43 73 4, 49 2) ,	64 74 8, 23 2 ,	--	13 88 0, 34 5 ,	52 194 96 7 , ,	91 11 6 ,	3, 11 6, 29 9, 12 3

Statements of Changes in Equity for the years ended 31 December 2020

B) Statement of Total Changes in Equity for the year ended 31 December 2020

(Expressed in Euros)

	Re ist ed g er ita l ca p	Sh are mi pre um	Re se rve s	Tr ea su ry sto ck	Pr ofi t fo he r t ye ar	Int im er div ide nd	Ot he ity r e qu ins tru nts me	Va lua tio n ad jus nts me ail ab le for av le sa	Gr ts, an do tio d na ns an be ts qu es ive d re ce	To tal
Ba lan at 31 De mb 20 18 ce ce er	119 60 3, 70 5 ,	91 0, 72 7, 61 9	53 8, 81 0, 91 0	( 0) 55 44 1, 21 ,	32 9, 71 8, 26 3	( 1) 136 74 7, 29 ,	12 65 1, 99 6 ,	--	112 54 9 ,	1, 71 9, 43 6, 54 1
Re ise d in d e co gn co me an xp en se	--	--	--	--	1, 63 0, 26 5, 59 1	--	--	1, 32 5, 574	( 7) 10 71 ,	1, 63 1, 58 0, 44 8
Tra ctio ith sh ho lde nsa ns w are rs or ow ne rs
Ne t m t in tre st k ov em en as ury oc	--	--	--	5, 85 7, 06 9	--	--	--	--	--	85 06 9 5, 7,
Inte rim div ide nd	--	--	--	--	--	( 136 82 7, 97 1) ,	--	--	--	( 1) 136 82 7, 97 ,
Re icte d s ha lan str re p	--	--	53 40 5, 5	--	--	--	( 153 87 2) ,	--	--	38 1, 53 3
Dis trib utio f p rof it/( Ap lica tion of n o p los s) for th eri od 20 18 e p
Re se rve s	--	--	91 05 9, 46 3 ,	--	( 91 05 9, 46 3) ,	--	--	--	--	--
Div ide nds	--	--	--	--	( 23 8, 65 8, 80 0)	136 74 7, 29 1 ,	--	--	--	( 10 1, 91 1, 50 9)
Ba lan 31 De mb 20 19 at ce ce er	119 60 3, 70 5 ,	91 0, 72 7, 61 9	63 0, 40 5, 77 8	( 49 58 4, 14 1) ,	1, 63 0, 26 5, 59 1	( 136 82 7, 97 1) ,	12 49 8, 124 ,	1, 32 5, 57 4	10 1, 83 2	3, 11 8, 51 6, 11 1

Statements of Cash Flows for the years ended 31 December 2020

(Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	2020	2019
Cash flows from operating activities
Profit for the year before tax	32,264,398	1,583,554,161
Adjustments for:
Dividend income	(165,227,338)	(953,825,030)
Profit on disposal of investments in group companies	--	(807,651,582)
Impairment	2,334,101	2,240,777
Amortisation and depreciation	13,620,793	12,609,622
Finance income	(230,941,731)	(73,258,940)
Finance costs	274,822,268	162,036,316
Change in fair value of financial instruments	2,977,673	205,702
Other income and expenses	(6,808,895)	428,303
Translation differences	87,530	--
Changes in operating assets and liabilities
Inventories	(778,501)	(1,130,870)
Trade and other receivables	(7,874,743)	(19,801,851)
Other current assets	10,586,851	(14,502,077)
Trade and other payables	(75,152,168)	54,496,294
Other cash flows from operating activities
Interest paid	(263,491,794)	(139,633,639)
Dividends received	165,227,338	877,413,057
Interest received	230,875,238	72,164,887
Income tax paid received	29,255,631	59,298,107
Cash flows from operating activities	11,776,651	814,643,237
Cash flows from investing activities
Payments for investments
Group companies and associates	(83,298,973)	52,466,809
Intangible assets	(8,418,945)	(7,526,703)
Property, plant and equipment	(36,047,474)	(13,021,000)
Other financial assets	--	(19,427)
Proceeds from sale of investments
Group companies and associates	300,000,000	(162,360)
Property, plant and equipment	--	--
Other financial assets	1,964,781	--
Cash flows from investing activities	174,199,389	31,737,319
Cash flows from financing activities
Proceeds from and payments for financial liability instruments
Disposal
Promissory notes	--	1,675,000,000
Loans and borrow ings	(9,333,113)	763,060,834
Group companies and associates
Group companies and associates	(59,992,971)	(3,045,890,910)
Other payables	(3,140,923)	--
Dividends and interest on other equity instruments paid
Dividends	(113,230,419)	(238,739,480)
Cash flows used in financing activities	(185,697,426)	(846,569,556)
Net increase/decrease in cash and cash equivalents	278,614	(189,000)
Cash and cash equivalents at beginning of year	2,243,907	2,432,907
Cash and cash equivalents at year end	2,522,521	2,243,907

The accompanying notes form an integral part of the annual accounts.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(1) Nature and Activities of the Company and Composition of the Group

Grifols, S.A. (hereinafter the Company) was incorporated with limited liability under Spanish law on 22 June 1987. Its registered office is in Barcelona. The Company's statutory activity consists of providing corporate and business administrative, management and control services, as well as investing in assets and property. Its principal activity involves rendering administrative, management and control services to its subsidiaries.

Its main facilities are located in Sant Cugat del Vallès (Barcelona) and Parets del Vallès (Barcelona).

Grifols, S.A.'s shares are listed on the Barcelona, Madrid, Valencia and Bilbao stock exchanges and on the electronic stock market. As of 2 June 2011, the class B non‐voting shares were listed on the NASDAQ (USA) and the Automated Quotation System (SIBE/Continuous Market).

In accordance with prevailing legislation, the Company is the Parent of a Group comprising the Company and the subsidiaries listed in note 12. In accordance with generally accepted accounting principles in Spain, consolidated annual accounts must be prepared to give a true and fair view of the financial position of the Group, the results of operations and changes in its equity and cash flows. Details of investments in Group companies, associates and multi‐group are provided in Appendix I.

On 19 February 2021 the Company's board of directors authorised for issue the consolidated annual accounts of Grifols, S.A. and subsidiaries for 2020 prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS‐EU), which show consolidated profit attributable to the Parent of Euros 618,546 thousand, total assets Euros 15,274,776 thousand and consolidated equity of Euros 6,720,055 thousand (Euros 625,146 thousand, Euros 15,542,611 thousand and Euros 6,845,768 thousand, respectively, in 2019).

(2) Basis of Presentation

(a) True and fair view

The accompanying annual accounts have been prepared on the basis of the accounting records of Grifols, S.A. The annual accounts for 2020 have been prepared in accordance with prevailing legislation and the Spanish General Chart of Accounts to give a true and fair view of the equity and financial position of the Company at 31 December 2020 and results of operations, changes in equity, and cash flows for the year then ended.

The directors consider that the annual accounts for 2020, authorised for issue on 19 February 2021, will be approved with no changes by the shareholders at their annual general meeting.

(b) Comparative information

The balance sheet, income statement, statement of changes in equity, statement of cash flows and the notes thereto for 2020 include comparative figures for 2019, which formed part of the annual accounts approved by the shareholders at the annual general meeting held on 9 October 2020.

(c) Functional and presentation currency

The figures disclosed in the annual accounts are presented in Euros, the Company's functional and presentation currency, rounded off to the nearest Euro.

(d) Critical issues regarding the valuation and estimation of relevant uncertainties and judgements used when applying accounting principles.

Relevant accounting estimates and judgements and other estimates and assumptions have to be made when applying the Company's accounting principles to prepare the annual accounts. A summary of the items requiring a greater degree of judgement or which are more complex, or where the assumptions and estimates made are significant to the preparation of the annual accounts, is as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(i) Relevant accounting estimates and assumptions

The Company tests investments in Group companies for impairment when there are signs that the book value is lower than the recoverable value, understood as the higher amount between the fair value less costs of sales and usage value. The determination of the recoverable value implies the use of estimates made by management. The Company generally uses cash flow discounting methods to calculate this value. Cash flow discounting calculations are based on the 5‐year projections of the budgets approved by management. The cash flows take into consideration past experience and represent management's best estimate of future market performance. The fifth‐year cash flows are extrapolated using individual growth rates. The key assumptions employed include growth rates and the discount rate. The estimates, including the methodology used, could have a significant impact on values and impairment.

(ii) Changes in accounting estimates

Although estimates are calculated by the Company's directors based on the best information available at 31 December 2020, future events may require changes to these estimates in subsequent years. Any effect on the annual accounts of adjustments to be made in subsequent years would be recognised prospectively. Grifols, S.A. management does not consider that there are any assumptions or sources of uncertainty that would have a significant risk of resulting in a material adjustment within the next financial year.

(3) Distribution of Profit

The distribution of profit and reserves of the Company for the year ended 31 December 2019, approved by the shareholders at their annual general meeting held on 9 October 2020, is as follows:

	Euros
Basis of allocation
Profit for the year	1,630,265,591
Distribution
Voluntary reserve	1,380,207,191
Mandatory preferred dividend on Class B	2,614,251
Dividends	247,444,149
	1,630,265,591

At the general meeting held on 9 October 2020, the shareholders of Grifols, S.A. approved the distribution of a mandatory preferred dividend of Euros 0.01 for every Class B share, for a total amount of Euros 2,614,251.

At the general meeting held on 24 May 2019, the shareholders of Grifols, S.A. approved the distribution of a mandatory preferred dividend of Euros 0.01 for every Class B share, for a total amount of Euros 2,614,251.

On 25 October 2019 the Company's board of directors approved the distribution of an interim dividend of Euros 0.20 for every class A and B share with a charge to the 2019 income statement, totalling Euros 136,828 thousand, payable on 4 December 2019. The amount distributed did not exceed the profits reported by the Company since the end of the previous reporting period, after deducting the estimated income tax payable on these profits, as required by article 277 of the revised Spanish Companies Act.

The provisional accounting statement prepared in accordance with the legal requirements brought to light the existence of enough liquidity to distribute the aforementioned dividend:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Thousands of Euros
Forecast distributable profit for 2019:
Projected profit after tax until 31/12/2019	827,684
Estimated distributable profit for 2019	827,684
Interim dividends distributed	136,828
Forecast cash for the period from 25 October 2019 to 25 October 2020:
Projected collections	1,157,200
Projected payments, including interim dividend	(557,000)
Projected cash balances at 25 October 2020	600,200

The proposed distribution of profit for the year ended 31 December 2020 to be submitted to the shareholders for approval at their annual general meeting is as follows:

2020

	Euros
Basis of allocation
Profit for the year	64,748,232
Voluntary reserves	247,519,749
	312,267,981
Distribution
Voluntary reserve	62,133,981
Mandatory preferred dividend on Class B shares	2,614,251
Dividends	247,519,749
	312,267,981

At 31 December 2020 and 2019 non‐distributable reserves are as follows:

	2020	2019
Non-distributable reserves
Legal reserve	23,920,741	23,920,741
Other	3,020	3,020
	23,923,761	23,923,761

Profit recognised directly in equity cannot be distributed, either directly or indirectly.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(4) Significant Accounting Policies

(a) Business combinations

As the Company applied the third transitional provision of Royal Decree 1514/2007, only those business combinations that occurred on or after 1 January 2008, the date of transition to the Spanish General Chart of Accounts, have been recognised using the acquisition method. Business combinations that occurred prior to that date were recognised in accordance with accounting principles prevailing at that time, taking into account the necessary corrections and adjustments at the transition date.

Business combinations carried out since 1 January 2010 are recognised by applying the acquisition method established in Recognition and Measurement Standard 19 of the Spanish General Chart of Accounts amended by article 4 of Royal Decree 1159/2010, which approves the standards for the preparation of consolidated annual accounts and amends the Spanish General Chart of Accounts.

The Company applies the acquisition method for business combinations, except for mergers, spin‐offs and non‐monetary contributions of a business between group entities.

The acquisition date is the date on which the Company obtains control of the acquiree.

The cost of the business combination is calculated as the sum of the acquisition‐date fair values of the assets transferred, the liabilities incurred or assumed, the equity instruments issued and any consideration contingent on future events or compliance with certain conditions in exchange for control of the acquiree.

The cost of a business combination excludes any payments that do not form part of the consideration given in exchange for the acquiree. Acquisition costs are recognised as an expense when incurred.

The costs of issuing equity and liability instruments are recognised using the measurement criteria applicable to these transactions.

The Company recognises the assets acquired and liabilities assumed at their acquisition‐date fair value. Liabilities assumed include any contingent liabilities that represent present obligations arising from past events for which the fair value can be reliably measured. The Company also recognises indemnification assets transferred by the seller at the same time and following the same measurement criteria as the item that is subject to indemnification from the acquiree, taking into consideration, where applicable, the insolvency risk and any contractual limitations on the indemnified amount.

(b) Foreign currency transactions, balances and cash flows

(i) Foreign currency transactions, balances and cash flows

Foreign currency transactions have been translated into Euros using average exchange rates for the prior month for all foreign currency transactions during the current month. This method does not differ significantly from applying the exchange rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies have been translated into Euros at the closing rate, while non‐monetary assets and liabilities measured at historical cost have been translated at the exchange rate prevailing at the transaction date. In the statement of cash flows, cash flows from foreign currency transactions have been translated into Euros using the average exchange rates for the prior month for all flows that occur during the following month. This method does not differ significantly from applying the exchange rate at the date of the transaction.

Exchange gains and losses arising on the settlement of foreign currency transactions and the translation into Euros of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(c) Capitalised borrowing costs

In accordance with the second transitional provision of Royal Decree 1514/2007 enacting the Spanish General Chart of Accounts, the Company has opted to apply this accounting policy to work in progress at 1 January 2008 which will not be available for use, capable of operating or available for sale for more than one year. Until that date, the Company opted to recognise borrowing costs as an expense as they were incurred.

Borrowing costs related to specific and general financing that are directly attributable to the acquisition, construction or production of intangible assets, property, plant and equipment and investment property that will not be available for use, capable of operating or available for sale for more than one year are included in the cost of the asset.

To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation is determined as the actual borrowing costs incurred. Non‐commercial general borrowing costs eligible for capitalisation are calculated as the weighted average of the borrowing costs applicable to the Company's outstanding borrowings during the period, other than those specifically for the purpose of obtaining a qualifying asset and the portion financed using equity. The borrowing costs capitalised cannot exceed the borrowing costs incurred during that period.

The Company begins capitalising borrowing costs as part of the cost of a qualifying asset when it incurs expenditures for the asset, interest is accrued, and it undertakes activities that are necessary to prepare the asset for its intended use, operation or sale, and ceases capitalising borrowing costs when all or substantially all the activities necessary to prepare the qualifying asset for its intended use, operation or sale are complete, even though the necessary administrative permits may not have been obtained. Interruptions in the active development of a qualifying asset are not considered. Nonetheless, restated advances on account are not qualifying assets for the purpose of capitalising borrowing costs.

Capitalised borrowing costs are recognised in the income statement under capitalised borrowing costs.

(d) Intangible assets

Intangible assets are measured at cost or cost of production. Capitalised production costs are recognised under "self‐ constructed assets" in the income statement. Intangible assets are carried at cost, less any accumulated amortisation and impairment.

Advances on account of fixed assets are initially measured at cost. In subsequent years, advances accrue interest at the supplier's incremental borrowing rate when the period between payment and the receipt of the asset exceeds one year.

Cost of production of intangible assets comprises the purchase price and any costs directly related to production.

Expenditure on activities that contribute to increasing the value of the Company's business as a whole, such as goodwill, trademarks and other similar items generated internally, as well as establishment costs, are recognised as expenses on the income statement when incurred.

(i) Computer software

Computer software acquired and developed by the Company is recognised to the extent that costs can be clearly allocated, expensed and distributed over time to each project, and when there is evidence of technical success and economic viability. Computer software maintenance costs are charged as expenses when incurred.

(ii) Subsequent costs

Subsequent costs incurred on intangible assets are recognised in profit and loss, unless they increase the expected future economic benefits attributable to the intangible asset.

(iii) Useful life and amortisation rates

Intangible assets with finite useful lives are amortised by allocating the depreciable amount of an asset on a systematic basis over its useful life, by applying the following criteria:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Depreciation method	Rates %
Computer software	Straight-line	16‑33

The depreciable amount is the acquisition or production cost of an asset.

The Company considers that the residual value of the assets is zero unless:

• There is a commitment by a third party to purchase the asset at the end of its useful life.
• There is an active market for the intangible asset and:
  • Residual value can be determined by reference to that market; and
  • It is probable that such market will exist at the end of the asset's useful life.

The Company reviews the useful life and amortisation method for intangible assets at each financial year end. Changes to initially established criteria are accounted for as a change in accounting estimates.

(iv) Impairment losses

The Company measures and determines impairment to be recognised or reversed based on the criteria in section (g) Impairment of non‐financial assets subject to amortisation or depreciation.

(e) Property, plant and equipment

(i) Initial recognition

Property, plant and equipment are measured at cost of acquisition or production, using the same criteria as for determining the cost of production of intangible assets. Capitalised production costs are recognised under "Self‐ constructed assets" in the income statement. Property, plant and equipment are carried at cost less any accumulated depreciation and impairment.

The cost of an item of property, plant and equipment includes the estimated costs of its dismantling or removal and restoration of the site on which it is located, provided that the obligation is incurred as a consequence of having used the item.

(ii) Property, plant and equipment swap

Property, plant and equipment acquired in exchange for one or more non‐monetary assets or a combination of monetary and non‐monetary assets, is recognized for the monetary amount delivered plus the fair value of the non‐monetary assets delivered in the transaction, except in those cases in which those that do not have a commercial substance or for which the fair value of the property, plant and equipment received or the asset delivered cannot be reliably measured.

The fair value of the asset received should be recognized by reference to the fair value of the asset delivered except in those transactions in which the fair value of the asset received can be determined with greater reliability. In those cases in which the fair value of the asset received or delivered cannot be determined reliably or in which the transaction lacks commercial substance, the acquisition cost is determined by reference to the net book value of the asset delivered, plus, where appropriate, the monetary counterparts paid or pending payment, with the limit of the fair value of the asset received if it were less.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(iii) Depreciation

Property, plant and equipment are depreciated by allocating the depreciable amount of the asset on a systematic basis over its useful life. The depreciable amount is the cost of an asset. The Company determines the depreciation charge separately for each component of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the asset and with a useful life that differs from the remainder of the asset.

Property, plant and equipment are depreciated using the following criteria:

	Depreciation method	Rates %
Buildings	Straight-line	2
Technical installations and machinery	Straight-line	10
Other installations, equipment and furniture	Straight-line	4-10
Other property, plant and equipment	Straight-line	7-33

The Company reviews useful lives and depreciation methods at each financial year end. Changes to initially established criteria are accounted for as a change in accounting estimates.

(iv) Subsequent costs

Subsequent to initial recognition of the asset, only the costs incurred which increase capacity or productivity or which lengthen the useful life of the asset are capitalised. The carrying amount of parts that are replaced is derecognised. Costs of day‐to‐day servicing are recognised in profit and loss as incurred.

Replacements of property, plant and equipment that qualify for capitalisation are recognised as a reduction in the carrying amount of the items replaced. Where the cost of the replaced items has not been depreciated independently and it is not possible to determine the respective carrying amount, the replacement cost is used as indicative of the cost of items at the time of acquisition or construction.

(v) Impairment

The Company measures and determines impairment to be recognised or reversed based on the criteria in section (g) Impairment of non‐financial assets subject to amortisation or depreciation.

(f) Investment property

The Company classifies property leased to its subsidiaries under this caption. All property is earmarked exclusively for own use or the use of Group companies.

Property that is being constructed or developed for future use as investment property is classified as property, plant and equipment under development until construction or development is complete. Nevertheless, redevelopment work to extend or improve property is classified as investment property.

The Company measures and recognises investment property following the policy for property, plant and equipment. The Company reclassifies property, plant and equipment to investment property when it ceases to use the building in the production or supply of goods or services, for administrative purposes or when it is held to earn rentals or for capital appreciation or both.

Investment property is depreciated applying the following policies:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Depreciation method	Rates %
Buildings and other installations	Straight-line	1‑10

(g) Impairment of non‐financial assets subject to amortisation or depreciation

The Company evaluates whether there are indications of possible impairment losses on non‐financial assets subject to amortisation or depreciation to verify whether the carrying amount of these assets exceeds the recoverable amount. The recoverable amount is the higher of the fair value less costs to sell and the value in use.

Impairment losses are recognised in the income statement.

At the end of each reporting period the Company assesses whether there is any indication that an impairment loss recognised in prior periods may no longer exist or may have decreased. Impairment losses on goodwill are not reversible. Impairment losses on other assets are only reversed if there has been a change in the estimates used to calculate the recoverable amount of the asset.

A reversal of an impairment loss is recognised in the income statement. The increased carrying amount of an asset attributable to a reversal of an impairment loss may not exceed the carrying amount that would have been determined, net of depreciation or amortisation, had no impairment loss been recognised.

After an impairment loss or reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the asset is adjusted in future periods based on its new carrying amount.

However, if the specific circumstances of the assets indicate an irreversible loss, this is recognised directly in losses on the disposal of fixed assets in the income statement.

(h) Leases

(i) Lessor accounting

Leases which, on inception, transfer to third parties substantially all the risks and rewards incidental to ownership of the assets are classified as finance leases, otherwise they are classified as operating leases.

(ii) Lessee accounting

Leases in which, upon inception, the Company assumes substantially all the risks and rewards incidental to ownership are classified as finance leases, otherwise they are classified as operating leases.

• Finance leases

At the commencement of the lease term, the Company recognises finance leases as assets and liabilities at the lower of the fair value of the leased asset and the present value of the minimum lease payments. Initial direct costs are added to the asset's carrying amount. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. Interest is expensed using the effective interest method.

Contingent rents are recognised as an expense when it is probable that they will be incurred.

The accounting policies applied to the assets used by the Company by virtue of finance lease contracts are the same as those set out in sections (e) and (f) (Property, plant and equipment or Investment Property).

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

• Operating leases

Lease payments under an operating lease, net of incentives received, are recognised as an expense on a straight‐line basis over the lease term.

Contingent rents are recognised as an expense when it is probable that they will be incurred.

(i) Financial instruments

(i) Classification and separation of financial instruments

Financial instruments are classified on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the economic substance of the contractual arrangement and the definitions of a financial asset, a financial liability and an equity instrument.

The Company classifies financial instruments into different categories based on the nature of the instruments and the Company's intentions on initial recognition.

(ii) Offsetting principles

A financial asset and a financial liability are offset only when the Company currently has the legally enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

(iii) Financial assets and financial liabilities held for trading

Financial assets or financial liabilities held for trading are those which are classified as held for trading from initial recognition.

A financial asset or financial liability is classified as held for trading if it:

• Originates or is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
• Forms part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short‐term profit‐taking or;
• Is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument.

Financial assets and financial liabilities held for trading are initially recognised at fair value. Transaction costs directly attributable to the acquisition or issue are recognised as an expense when incurred.

After initial recognition, they are recognised at fair value through profit or loss. Fair value is not reduced by transaction costs incurred on sale or disposal. Accrual interest and dividends are recognised separately.

The Company does not reclassify any financial asset or financial liability into or out of this category while it is recognised in the balance sheet, except when there is a change in the classification of hedging financial instruments.

(iv) Financial assets and financial liabilities at fair value through profit or loss

Financial assets and financial liabilities at fair value through profit or loss, which comprise derivatives, are initially recognised at fair value and after initial recognition are recognised at fair value through profit or loss.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(v) Loans and receivables

Loans and receivables comprise trade and non‐trade receivables with fixed or determinable payments that are not quoted in an active market other than those classified in other financial asset categories. These assets are initially recognised at fair value, including transaction costs, and are subsequently measured at amortised cost using the effective interest method.

Nevertheless, financial assets which have no established interest rate, which mature or are expected to be received in the short term, and for which the effect of discounting is immaterial, are measured at their nominal amount.

(vi) Available‐for‐sale financial assets

The Company classifies in this category debt securities and equity instruments which do not qualify for inclusion in the aforementioned categories.

Available‐for‐sale financial assets are initially recognised at fair value plus transaction costs directly attributable to the acquisition.

After initial recognition, financial assets classified in this category are measured at fair value and any gain or loss is accounted for in income and expenses recognised in equity. On disposal of the financial assets, amounts recognised in equity or the impairment loss are reclassified to profit or loss.

(vii) Investments in Group companies and associates

Group companies are those over which the Company, either directly, or indirectly through subsidiaries, exercises control as defined in article 42 of the Spanish Code of Commerce, or when the companies are controlled by one or more individuals or entities acting jointly or under the same management through agreements or statutory clauses.

Control is the power to govern the financial and operating policies of an entity or business so as to obtain benefits from its activities. In assessing control, potential voting rights held by the Company or other entities that are exercisable or convertible at the end of each reporting period are considered.

Associates are entities over which the Company, either directly, or indirectly through subsidiaries, exercises significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The existence of potential voting rights that are exercisable or convertible at the end of each reporting period, including potential voting rights held by the Company or other entities, are considered when assessing whether an entity has significant influence.

Investments in Group companies and associates are initially recognised at cost, which is equivalent to the fair value of the consideration given, including transaction costs in the case of investments in associates, and are subsequently measured at cost net of any accumulated impairment. The cost of investments in Group companies acquired before 1 January 2010 includes any transaction costs incurred.

If an investment no longer qualifies for classification under this category, it is reclassified as available‐for‐sale and is measured as such from the reclassification date.

(viii) Non‐monetary contributions in exchange for investments in the equity of other companies

The Company recognizes the equity instruments received in exchange for non‐monetary contributions as swaps as provided in section e.

(ix) Interest and dividends

Interest is recognised using the effective interest method.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

Dividends from investments in equity instruments are recognised when the Company is entitled to receive them. If the dividends are clearly derived from profits generated prior to the acquisition date because amounts higher than the profits generated by the investment since acquisition have been distributed, the carrying amount of the investment is reduced.

Interest and dividend income are classified as revenue when they form part of the Company's ordinary activity.

(x) Impairment of financial assets

A financial asset or a group of financial assets is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset and the event or events have an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

The Company recognises impairment of loans and receivables and debt instruments when estimated future cash flows are reduced or delayed due to debtor insolvency.

For equity instruments, objective evidence of impairment exists when the carrying amount of an asset is uncollectible due to a significant or prolonged decline in its fair value.

Investments in Group companies

Impairment is calculated by comparing the carrying amount of the net investment in the associate with its recoverable amount. The recoverable amount is the higher of value in use and fair value less costs to sell.

Value in use is calculated based on the Company's share of the present value of future cash flows expected to be derived from ordinary activities and from the disposal of the asset. Unless better evidence is available, the investee's equity is taken into consideration, corrected for any unrealised gains existing at the measurement date.

In subsequent years, reversals of impairment losses in the form of increases in the recoverable amount are recognised, up to the limit of the carrying amount that would have been determined for the investment if no impairment loss had been recognised.

The recognition or reversal of an impairment loss is disclosed in the income statement unless it should be recognised in equity.

Impairment of an investment is limited to the amount of the investment, except when contractual, legal or constructive obligations have been assumed by the Company or payments have been made on behalf of the companies. In the latter case, provision is made.

(xi) Financial liabilities

Financial liabilities, including trade and other payables, that are not classified as held for trading or as financial liabilities at fair value through profit or loss are initially recognised at fair value less any transaction costs directly attributable to the issue of the financial liability. After initial recognition, liabilities classified under this category are measured at amortised cost using the effective interest method.

Nevertheless, financial liabilities which have no established interest rate, which mature or are expected to be settled in the short term, and for which the effect of discounting is immaterial, are measured at their nominal amount.

The Company measures financial liabilities at amortised cost provided that reliable estimates of cash flows can be made based on the contractual terms.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(xii) Derecognition and modifications of financial liabilities

The Company derecognises all or part of a financial liability when it either discharges the liability by paying the creditor, or is legally released from primary responsibility for the liability either by process of law or by the creditor. The exchange of debt instruments between the Company and the counterparty or substantial modifications of initially recognised liabilities are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability, provided that the instruments have substantially different terms.

The Company considers the terms to be substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability.

If the exchange is accounted for as an extinguishment of the financial liability, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modified liability.

The difference between the carrying amount of a financial liability, or part of a financial liability, extinguished or transferred to another party and the consideration paid, including any non‐cash assets transferred or liabilities assumed, is recognised in profit or loss.

(xiii) Reverse factoring

The Company has contracted reverse factoring facilities with various financial institutions to manage payments to suppliers. Trade payables settled under the management of financial institutions are recognised under "trade and other payables" in the balance sheet until they are settled, repaid or have expired.

(j) Own equity instruments held by the Company.

Equity instruments acquired by the Company are shown separately at cost of acquisition as a reduction in capital and reserves in the balance sheet. Any gains or losses on transactions with own equity instruments are not recognised in profit or loss.

Transaction costs related to own equity instruments, including issue costs related to a business combination, are accounted for as a deduction from reserves, net of any tax effect.

(k) Inventories

(i) General

Inventories are measured using the FIFO (first in, first out) method. When the cost of inventories exceeds replacement value, materials are written down to net realisable value.

Inventories are mainly spare parts used to maintain the Company's buildings and facilities.

(ii) Emission allowances

Emission allowances acquired are classified and measured by applying accounting policies.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(l) Cash and cash equivalents

Cash and cash equivalents include cash on hand and demand deposits in financial institutions. They also include other short‐ term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. An investment normally qualifies as a cash equivalent when it has a maturity of less than three months from the date of acquisition.

(m) Grants

Grants are recorded in recognised income and expense when, where applicable, they have been officially awarded and the conditions attached to them have been met or there is reasonable assurance that they will be received.

Grants that are given to finance specific expenses are recognised as income in the same year as the finance cost is accrued.

(n) Defined contribution plans

The Company recognises the contributions payable to a defined contribution plan in exchange for a service when an employee has rendered service to the Company. The contributions payable are recognised as an expense for employee remuneration and as a liability after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the period, the Company only recognises that excess as an asset (prepaid expense) to the extent that the prepayments will lead to, for example, a reduction in future payments or cash refund.

(o) Provisions

(i) General criteria

Provisions are recognised when the Company has a present obligation (legal, contractual, constructive or tacit) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period, taking into account all risks and uncertainties surrounding the amount to be recognised as a provision and, where the time value of money is material, the financial effect of discounting provided that the expenditure to be made each period can be reliably estimated. The discount rate is a pre‐tax rate that reflects the time value of money and the specific risks for which future cash flows associated with the provision have not been adjusted at each reporting date.

If it is not probable that an outflow of resources will be required to settle an obligation, the provision is reversed.

(ii) Provisions for taxes

Provisions for taxes are measured at the estimated amount of tax debt calculated in accordance with the aforementioned criteria. Provision is made with a charge to income tax for the tax expense for the year, to finance costs for the late payment interest, and to other income for the penalty. The effects of changes in estimates of prior years' provisions are recognised according to their nature, unless they involve the correction of an error.

(p) Revenue from the rendering of services

Revenue from the rendering of services is measured at the fair value of the consideration received or receivable.

Practically all services are rendered to Group companies.

(q) Income tax

The income tax expense or tax income for the year comprises current tax and deferred tax.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

Current tax assets or liabilities are measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and tax laws that have been enacted or substantially enacted at the reporting date.

Current and deferred tax are recognised as income or an expense and included in profit or loss for the year, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different year, directly in equity, or from a business combination.

Government assistance provided in the form of deductions and other tax relief applicable to income tax payable is recognised as a reduction in the income tax expense in the year in which it is accrued.

Current or deferred income tax is recognized in the profit or loss, unless it arises from a transaction or economic event that has been recorded in the same or a different fiscal year, against equity or a business combination.

Deductions and other tax benefits for income tax granted by public entities as a reduction in the share of such tax are recognised as a reduction in corporate tax expenditure in the year in which they accrue.

The Company files consolidated tax returns with its Spanish subsidiaries: Laboratorios Grifols, S.A., Instituto Grifols, S.A., Grifols Movaco, S.A., Biomat, S.A., Grifols International, S.A., Araclon Biotech, S.L., Grifols Engineering, S.A., Grifols Viajes S.A., Aigües Minerals de Vilajuïga, S.A., Gripdan Invest, S.L. and VCN Biosciences, S.L.

In addition to the factors to be considered for individual taxation, set out previously, the following factors are taken into account when determining the accrued income tax expense for the companies forming the consolidated tax group:

• Temporary and permanent differences arising from the elimination of profits and losses on transactions between Group companies, derived from the process of determining consolidated taxable income.
• Deductions and credits corresponding to each company forming the consolidated tax group. For these purposes, deductions and credits are allocated to the company that carried out the activity or obtained the profit necessary to obtain the right to the deduction or tax credit.

Temporary differences arising from the elimination of profits and losses on transactions between tax group companies are allocated to the company which recognised the profit/loss and are valued using the tax rate of that company.

A reciprocal credit and debit arises between the companies that contribute tax losses to the consolidated Group and the rest of the companies that offset those losses. Where a tax loss cannot be offset by the other consolidated Group companies, these tax credits for loss carryforwards are recognised as deferred tax assets using the applicable recognition criteria, considering the tax group as a taxable entity.

The Parent of the Group records the total consolidated income tax payable under payable to Group companies.

The amount of the debt relating to the subsidiaries is recognised as receivables from Group companies.

(i) Deferred Tax liabilities

Deferred tax liabilities derived from taxable temporary differences are recognised in all cases except where they arise from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable income.

(ii) Deferred Tax assets

Deferred tax assets derived from deductible temporary differences are recognised provided that it is probable that sufficient taxable income will be available against which they can be utilised or when the tax legislation considers the possibility to convert future assets for deferred taxes on receivables in front of the Public Administration.

Nonetheless, assets arising from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable income, are not recognised.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(iii) Measurement

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the years when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantially enacted. The tax consequences that would follow from the manner in which the Company expects to recover or settle the carrying amount of its assets or liabilities are also reflected in the measurement of deferred tax assets and liabilities.

(iv) Offset and classification

The Company only offsets tax assets and liabilities if it has a legally enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

Deferred tax assets and liabilities are recognised in the balance sheet under non‐current assets or liabilities, irrespective of the expected date of recovery or settlement.

(r) Share‐based payment transactions

The Group headed by the Company extends share‐based payments to certain employees currently rendering services. The fair value of the services received is calculated by estimating the fair value of the shares extended at the grant date. As the equity instruments granted do not vest until the employees complete a specified period of service, those services are accounted for in the income statement as an expense for the year during the vesting period, with a corresponding increase in other equity instruments. The amount recognised reflects the amount that will be settled once the agreed conditions are met, and will not be revised or remeasured during the vesting period, as the commitment was settled through shares.

The total amount recognised is calculated based on the incentive payable in shares plus a percentage defined by the Company. If an employee leaves his job before the vesting period is completed, only the agreed share‐based incentive is received, and the Company can decide whether to pay the incentive in cash or in shares.

The Company has a share option plan over its own equity instruments for employees of several Group companies, the cost of which is assumed by the Company. The Company recognises the transaction as a contribution to the subsidiary in the form of remuneration for services received settled through equity instruments. In accordance with the aforementioned criteria, the Company therefore recognises the accrued cost of the plan as an increase in the value of the investment in the subsidiary with a credit to other equity instruments.

The Company is paid by the subsidiary for the intrinsic value of the cost assumed. The payment arrangement is recognised separately from the option plan as a return of the investment and with a charge to a loan to Group companies, when the subsidiary's commitment effectively arises.

(s) Classification of assets and liabilities as current and non‐current

The Company classifies assets and liabilities in the balance sheet as current and non‐current. Current assets and liabilities are determined as follows:

• Assets are classified as current when they are expected to be realised or are intended for sale or consumption in the Company's normal operating cycle, they are held primarily for the purpose of trading, they are expected to be realised within twelve months after the reporting date or are cash or a cash equivalent.
• Liabilities are classified as current when they are expected to be settled in the Company's normal operating cycle, they are held primarily for the purpose of trading, or they are due to be settled within twelve months after the reporting date.
• (t) Environmental issues

The Company takes measures to prevent, reduce or repair the damage caused to the environment by its activities.

Expenses derived from environmental activities are recognised as other operating expenses in the period in which they are incurred.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

Property, plant and equipment acquired by the Company to minimise the environmental impact of its activity and protect and improve the environment, including the reduction and elimination of future pollution from the Company's activities, are recognised as assets applying the measurement, presentation and disclosure criteria described in section (e) Property, plant and equipment.

(u) Transactions between Group companies

Transactions between Group companies, except those related to mergers, spin‐offs and non‐cash business contributions, are recognised at the fair value of the consideration given or received. The difference between this value and the amount agreed is recognised in line with the underlying economic substance of the transaction.

In non‐monetary contributions to Group companies, the contributor will value its interests at the carrying amount of the equity investments, in the consolidated annual accounts at the date the transaction occurred.

Any difference between the value assigned to the interest received by the contributor and the carrying amount of the investments contributed will be recognised in reserves.

(5) Intangible Assets

Details of intangible assets and movement are as follows:

	Euros
		Computer
2020	Other items	software	Prepayments	Total
Cost at 1 January 2020	‐‐	62,536,679	500,000	63,036,679
Additions	2,977,260	8,418,945	‐‐	11,396,205
Transfers	‐‐	129,039	‐‐	129,039
Cost at 31 December 2020	2,977,260	71,084,663	500,000	74,561,923
Accumulated amortisation at 1 January 2020	‐‐	(46,111,167)	‐‐	(46,111,167)
Amortisations	‐‐	(5,242,279)	‐‐	(5,242,279)
Accumulated amortisation at 31 December 2020	‐‐	(51,353,446)	‐‐	(51,353,446)
Accumulated impairment at 1 January 2020	‐‐	‐‐	‐‐	‐‐
Impairment	(2,977,260)	‐‐	‐‐	(2,977,260)
Accumulated impairment at 31 December 2020	(2,977,260)	‐‐	‐‐	(2,977,260)
Carrying amount at 31 december 2020	‐‐	19,731,217	500,000	20,231,217

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Euros
2019	Computer software	Prepayments	Total
Cost at 1 January 2019	55,750,145	‐‐	55,750,145
Additions	7,026,703	500,000	7,526,703
Disposals	(26,583)	‐‐	(26,583)
Transfers	(213,586)	‐‐	(213,586)
Cost at 31 December 2019	62,536,679	500,000	63,036,679
Accumulated amortisation at 1 January 2019	(41,215,726)	‐‐	(41,215,726)
Amortisations	(4,922,023)	‐‐	(4,922,023)
Disposals	26,582	‐‐	26,582
Accumulated amortisation at 31 December 2019	(46,111,167)	‐‐	(46,111,167)
Carrying amount at 31 december 2019	16,425,512	500,000	16,925,512

a) Fully amortised assets

The cost of fully amortised intangible assets in use at 31 December is as follows:

	Euros
	2020 2019
Computer software	41,243,878	39,173,552

Fully amortised computer software in use at 31 December 2020 and 2019 mainly reflects computer licences.

(6) Property, Plant and Equipment

Details of property, plant and equipment and movement are as follows:

	Euros
2020	Land	Buildings	Technical installations and machinery	Other installations, equipment and furniture	Under construction and advances	Other items	Total
Cost at 1 January 2020	‐‐	‐‐	8,546,405	21,547,412	9,905,542	21,302,991	61,302,350
Additions	7,082,500	4,390,682	‐‐	2,506,534	3,195,475	2,678,807	19,853,998
Disposals	‐‐	‐‐	(44,207)	(12,937)	‐‐	‐‐	(57,144)
Transfers	‐‐	‐‐	315,492	1,979,024	(7,034,253)	4,887,463	147,726
Cost at 31 December 2020	7,082,500	4,390,682	8,817,690	26,020,033	6,066,764	28,869,261	81,246,930
Accumulated amortisation at 1 January 2020	‐‐	‐‐	(6,838,921)	(14,428,228)	‐‐	(14,919,247)	(36,186,396)
Amortisations	‐‐	(58,543)	(260,111)	(1,317,329)	‐‐	(3,522,814)	(5,158,797)
Disposals	‐‐	‐‐	43,794	12,262	‐‐	‐‐	56,056
Accumulated amortisation at 31 December 2020	‐‐	(58,543)	(7,055,238)	(15,733,295)	‐‐	(18,442,061)	(41,289,137)
Carrying amount at 31 december 2020	7,082,500	4,332,139	1,762,452	10,286,738	6,066,764	10,427,200	39,957,793

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

			Euros
		Other
	Technical	installations,
	installations	equipment and	Under construction
2019	and machinery	furniture	and advances	Other items	Total
Cost at 1 January 2019	8,546,405	21,538,222	6,368,097	22,128,057	58,580,781
Additions	‐‐	‐‐	7,850,509	319,079	8,169,588
Disposals	‐‐	(159,984)	‐‐	(3,405,080)	(3,565,064)
Transfers	1	169,174	(4,313,064)	2,260,935	(1,882,954)
Cost at 31 December 2019	8,546,406	21,547,412	9,905,542	21,302,991	61,302,351
Accumulated amortisation at 1
January 2019	(6,576,790)	(13,515,097)	‐‐	(15,594,757)	(35,686,644)
Additions	(262,134)	(1,181,795)	‐‐	(2,730,013)	(4,173,942)
Disposals	3	131,293	‐‐	3,405,525	3,536,821
Transfers	‐‐	137,371	‐‐	(2)	137,369
Accumulated amortisation at
31 December 2019	(6,838,921)	(14,428,228)	‐‐	(14,919,247)	(36,186,396)
Carrying amount at 31
december 2019	1,707,485	7,119,184	9,905,542	6,383,744	25,115,955

(a) Capitalised borrowing costs

During 2020 the Company has capitalised borrowing costs in investments in progress amounting to Euros 432 thousand (Euros 801 thousand in 2019) (see note 4 (c)).

(b) Fully depreciated assets

Details of the cost of fully depreciated property, plant and equipment in use at 31 December are as follows:

		Euros
	2020	2019
Technical installations and machinery	6,099,482	5,908,887
Other installations, equipment and furniture	10,309,734	8,895,689
Other property, plant and equipment	12,619,966	11,014,249
	29,029,182	25,818,825

(c) Insurance

The Company has taken out insurance policies to cover the risk of damage to its property, plant and equipment. These policies amply cover the net carrying amount of the Company's assets.

(7) Investment Property

Details of and movements in investment property have been as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

		Euros
	2020
			Investments in
		Buildings and other	adaption and
Description	Land	installations	advances	Total
Cost at 1 January 2020	7,465,329	83,449,402	10,268,492	101,183,223
Additions	7,777,049	179,264	5,882,517	13,838,830
Disposals	‐‐	(190,067)	‐‐	(190,067)
Transfers	4,217,900	4,260,874	(8,755,539)	(276,765)
Cost at 31 December 2020	19,460,278	87,699,473	7,395,470	114,555,221
Accumulated amortisation at 1 January 2020	‐‐	(42,279,543)	‐‐	(42,279,543)
Amortisations	‐‐	(3,219,717)	‐‐	(3,219,717)
Accumulated amortisation at 31 December 2020	‐‐	(45,499,260)	‐‐	(45,499,260)
Carrying amount at 31 december 2020	19,460,278	42,200,213	7,395,470	69,055,961

	Euros
	2019
			Investments in
		Buildings and other	adaption and
Description	Land	installations	advances	Total
Cost at 1 January 2019	7,465,344	79,515,286	6,631,896	93,612,526
Additions	‐‐	‐‐	5,652,439	5,652,439
Disposals	(15)	(178,267)	‐‐	(178,282)
Transfers	‐‐	4,112,383	(2,015,843)	2,096,540
Cost at 31 December 2019	7,465,329	83,449,402	10,268,492	101,183,223
Accumulated amortisation at 1 January 2019	‐‐	(38,791,702)	‐‐	(38,791,702)
Additions	‐‐	(3,513,657)	‐‐	(3,513,657)
Disposals	‐‐	163,186	‐‐	163,186
Transfers	‐‐	(137,370)	‐‐	(137,370)
Accumulated amortisation at 31 December 2019	‐‐	(42,279,543)	‐‐	(42,279,543)
Carrying amount at 31 december 2019	7,465,329	41,169,859	10,268,492	58,903,680

(a) General

At 31 December 2020 and 2019 additions comprise the investments incurred to expand the Company's facilities and the acquisition of a plot of land in Lliçà de Vall.

(b) Fully depreciated assets

The cost of fully depreciated investment property in use at 31 December is as follows:

		Euros
	2020	2019
Buildings	1,031,791	1,031,791
Other installations	23,703,806	20,214,905
	24,735,597	21,246,696

(c) Income and expenses from investment property

Details of income and expenses from investment property are as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Euros
	2020	2019
Income from assignment of use (note 23) Operating expenses	22,430,341	21,404,970
From income-generating investments	(22,610,611)	(21,302,749)
Net	(180,270)	102,221

The Company assigns the use of the premises and installations that it owns and leases from third parties to its Spanish subsidiaries as indicated in notes 9, 10 and 23.

(d) Insurance

The Company has taken out insurance policies to cover the risk of damage to its investment property. The coverage of these policies is considered sufficient.

(8) Finance Leases ‐ Lessee

The Company has leased the following types of property, plant and equipment and investment property under finance leases:

	Euros
	Land	Other property, plant and equipment	Total
Initially recognised at:
Fair value	381,071	3,734,358	4,115,429
Accumulated depreciation	(17,727)	(2,437,545)	(2,455,272)
Carrying amount at 31 December 2020	363,344	1,296,813	1,660,157
Initially recognised at:
Fair value	381,071	3,462,461	3,843,532
Accumulated depreciation	(8,864)	(1,167,562)	(1,176,426)
Carrying amount at 31 December 2019	372,207	2,294,899	2,667,106

Future minimum lease payments are reconciled with their present value as follows:

	Euros
	2020	2019
Future minimum payments Unaccrued finance costs	2,157,488 (43,677)	2,875,549 (80,028)
Present value	2,113,811	2,795,521

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

Details of minimum payments and the present value of finance lease liabilities, by maturity date, are as follows:

	Euros
	2020		2019
	Minimum payments	Present value	Minimum payments	Present value
Less than one year One to five years	1,084,727 1,072,761	1,055,848 1,057,963	1,010,925 1,864,624	968,316 1,827,205
	2,157,488	2,113,811	2,875,549	2,795,521
Less current portion	(1,084,727)	(1,055,848)	(1,010,925)	(968,316)
Total non-current	1,072,761	1,057,963	1,864,624	1,827,205

(9) Operating Leases ‐ Lessee

At 31 December 2020 and 2019, the Company has contracted various office premises and a plot of land under operating leases from third parties and one related party.

The most significant lease contracts are as follows:

Contract with a related party for offices located in Sant Cugat del Vallès (Barcelona) (SC1+SC2+SC3)

The contract period is until 1st March 2040 and it is of compulsory compliance, with five‐year tacit renewals. It may be cancelled by giving notice of 6 months in advance.

Contract with a group company for industrial buildings located in Parets del Vallès (Barcelona) (P4)

This contract is valid until 10th May 2021 and it is of compulsory compliance, with five‐year tacit renewals, unless either of the parties cancels the contract giving notice of 6 months in advance after fulfilling the compulsory period.

Contract with a group company for the plot in Parets del Vallès (Barcelona) where the construction of buildings P12 and P13 is located

This contract is valid until 10th May 2021 and it is of compulsory compliance, with five‐year tacit renewals, unless either of the parties cancels the contract giving notice of 6 months in advance after fulfilling the compulsory period.

Operating lease payments have been recognised as an expense for the year as follows:

	Euros
	2020	2019
Lease payments (recognised as an expense)	9,875,037	9,942,552

Future minimum payments under non‐cancellable operating leases are as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

		Euros
	2020	2019
Less than one year	7,344,527	6,280,831
One to five years	20,023,588	21,688,271
Over five years	68,422,390	79,504,026
	95,790,505	107,473,128

The Company uses part of these premises for its own use and the rest are assigned for use to its Spanish subsidiaries (see note 7 (c)).

(10) Assignment for Use of Premises and Installations

As described in note 7 (c), note 9 and note 23, the Company assigns the use of the premises and installations that it owns and leases from third parties to its Spanish subsidiaries.

Services included in the assignment for use agreements are: surveillance, cleaning of common areas, greeting and messaging, maintenance and water, energy and gas supplies. In order to take advantage of these services, the Spanish subsidiaries will use the premises in accordance with the statutory activity.

Contracts signed with its subsidiaries are renewed automatically on an annual basis and can be cancelled at any time with three months' prior notice. The minimum non‐cancellable amount receivable totals Euros 5,608 thousand at 31 December 2020 (Euros 5,351 thousand in 2019).

(11) Risk Management Policy

(a)5Financial risk factors

The Company's activities are exposed to various financial risks: market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk, and cash flow interest rate risk. The Company's global risk management programme focuses on uncertainty in the financial markets and aims to minimise potential adverse effects on the Company's profits.

The Company's risk management policies are established in order to identify and analyse the risks to which the Company is exposed, establish suitable risk limits and controls, and control risks and compliance with limits. Risk management procedures and policies are regularly reviewed to ensure they take into account changes in market conditions and in the Company's activities. The Company's management procedures and rules are designed to create a strict and constructive control environment in which all employees understand their duties and obligations.

The Group's Audit Committee supervises how management controls compliance with the Group's risk management procedures and policies and reviews whether the risk management policy is suitable considering the risks to which the Group is exposed. This committee is assisted by Internal Audit which acts as supervisor. Internal Audit performs regular and ad hoc reviews of the risk management controls and procedures and reports its findings to the Audit Committee.

(i) Market risk

The Company is not exposed to market risks associated with non‐financial assets.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(ii) Currency risk

The Company operates internationally and is therefore exposed to currency risk when operating with foreign currencies, especially with regard to the US Dollar. Currency risk is associated with recognised assets and liabilities, and net investments in foreign operations.

The Company holds several investments in foreign operations, the net assets of which are exposed to currency risk. Currency risk affecting net assets of the Company's foreign operations in US Dollars is mitigated primarily through borrowings in the corresponding foreign currency.

Details of financial assets and liabilities denominated in foreign currency, as well as transactions denominated in foreign currency are presented in the notes 14 and 19.

At 31 December 2020 had the US Dollar weakened by 10% against the Euro, with the other variables remaining constant, post‐tax profit would have been Euros 783 thousand lower, mainly as a result of converting payables to Group companies (Euros 37 thousand at 31 December 2019).

(iii) Credit risk

The Company's financial assets mainly comprise the trade receivables from and loans to Group companies.

The Company considers that its financial assets are not significantly exposed to credit risk.

(iv) Liquidity risk

The Company applies a prudent policy to cover its liquidity risks based on having sufficient cash, as well as sufficient financing through credit facilities, to settle market positions.

Details of financial liabilities by contractual maturity date are provided in notes 14 and 19 (e).

(v) Cash flow and fair value interest rate risks

Interest rate risk arises on loans extended to Group companies and current and non‐current borrowings. Borrowings and loans extended at variable interest rates expose the Company to cash flow interest rate risks. Fixed‐rate borrowings expose the Company to fair value interest rate risk.

The objective of interest rate risk management is to achieve a balance in the structure of the debt, keeping part of the external resources issued at a fixed rate and covering part of the variable rate debt extending loans to Group companies.

At 31 December 2020, had interest rates been 10 basis points higher/lower, with the other variables remaining constant, post‐tax profit would have been Euros 932 thousand lower/higher, mainly because of higher borrowing costs on variable interest debt (Euros 1,859 thousand at 31 December 2019).

(12) Investments in Equity Instruments of Group Companies and Associates

Details of investments in equity instruments of Group companies and Associates are as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Euros
	2020	2019
	Non-current	Non-current
Group companies and Associates
Equity investments	3,970,502,459	2,419,641,850
Impairment	(22,993,094)	(18,724,826)
Total	3,947,509,365	2,400,917,024

During 2020 the following main changes to Company investments in equity instruments took place:

• In 2015, for the annual bonus of certain eligible employees, the Group set up a Restricted Share Unit Retention Plan (hereinafter RSU plan) (see note 16). In 2020 the bonuses accrued in the RSU plan during the period were recognised as an investment by the Company in those subsidiaries with employees adhering to this plan, as it is considered as a contribution from the shareholder totalling Euros 5,673 thousand.
• Grifols, S.A. has taken a total of 9 stakes of Kiro Grifols, S.L. Grifols, S.A. makes a capital contribution and disburses a monetary contribution of Euros 9 million.
• A monetary contribution of Euros 17 million was approved at the general shareholders' meeting of Laboratorios Grifols, S.A. This contribution was made by Grifols, S.A., the shareholder holding 99.99% of the shares in which the Company's share capital was divided at the date of the adoption of the agreement.
• Grifols Worldwide Operations, Ltd. made a distribution in kind to the Company for an amount of Euros 300 million, that has been registered as lower value of the investment.
• Grifols Canada Ltd transferred 100% of its shares from Grifols Therapeutics LLC to Grifols Shared North America, Inc., and from this one to Grifols, S.A. This transaction took place on 1 December 2020, and they have been valued at consolidated value for an amount of Euros 1,081 thousand.
• Grifols, S.A. has done a capital contribution of Euros 19,711,278 to GC2, Inc.
• On 30 March 2020, the shares exchange agreement has been closed and Grifols has received Shanghai RAAS Blood Products Co.Ltd. (hereinafter SRAAS) shares corresponding to 26.2% of its share capital in exchange of 45% of Grifols Diagnostic Solutions Inc. (hereinafter GDS). Thus, Grifols becomes the largest shareholder of SRAAS, while maintaining operational, political and economic control of GDS.

Consequently, the consolidated balance sheet at 31 December 2020, no longer shows any financial asset related to the contractual right in 2019, but the participation in SRAAS has been registered as an investment in an associate company because GDS exercise significant influence for an amount of Euros 1,807,351 thousand, including the transaction costs (see note 15). SRAAS' investment has been recognized at the shares value of the closing date of the transaction. The difference between the contractual right value recognized at 31 December 2019 and SRAAS quoted value at 30 March 2020 has been Euros 56,526 thousand, from which a total of Euros 51,692 thousand has been recognised as profit and loss registered directly in Equity and Euros 4,833 thousand has been registered as translation differences in the profit and loss.

In 2020, it has been registered an impairment of the investment in Grifols Argentina S.A. and the Aigües Minerals de Vilajuïga.

During 2019 the following main changes to Company investments in equity instruments took place:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

• In 2015, for the annual bonus of certain eligible employees, the Group set up a Restricted Share Unit Retention Plan (hereinafter RSU plan) (see note 16). In 2019 the bonuses accrued in the RSU plan during the period were recognised as an investment by the Company in those subsidiaries with employees adhering to this plan, as it is considered as a contribution from the shareholder totalling Euros 4,853 thousand.
• Grifols, S.A. has forgiven two loans to Progenika Biopharma, S.A. The first loan of Euros 7.5 million was on the 27 February 2019. The second loan of US Dollars 5 million was forgiven on the same date.
• Grifols Worldwide Operations, Ltd. Made a distribution in kind to Grifols, S.A. This involved transferring 49% of Interstate Blood Bank, Inc (IBBI) (Plasma Biological Services, LLC, PBS Acquisition Corp., Bio Blood Components, Inc) shares. The carrying amount recognised in Grifols, S.A. amounts to US Dollars 104 million (Euros 90 million).
• As part of the Group's reorganization, Grifols, S.A. has made a contribution in kind to Grifols Shared Services North America, Inc, transferring all IBBI group shares mentioned above. The contribution in kind was registered at the carrying amount of the transferred investment. The transaction amounted to US Dollars 104 million (equivalent to Euros 90 million). This transaction was recorded on the 1 July 2019.
• Distribution in kind (loan with Grifols Brazil, Lda) from Grifols Worldwide Operations, Ltd to Grifols, S.A. on 31 July 2019. The contribution was recognised at carrying amount. An amount of Euros 9 million has been recognised for this transaction. With date 1 October 2019 two loans were forgiven incrementing the amount of the investing of Grifols Brazil in Euros 8,793 thousand.
• On 2 December 2019 Grifols Worldwide Operations, Ltd. distributed an interim dividend of US Dollars 100 million. A portion of this amount should be recognised as a reduction in the investment as it represents a recovery of part of the investment cost. The portion recognised as a reduction in the investment amounts US Dollars 15 million (Euros 13 million).
• 45% of the participating loan that Grifols Worldwide Operations, Ltd had with Diagnostic Grifols, S.A. had been transferred to Grifols, S.A. (equivalent to Euros 26,230 thousand). The remaining 55% of the participating loan has been transferred to Grifols Shared Services North America, Inc for an amount of Euros 32,060 thousand. Subsequently, a contribution in kind is made to Grifols Diagnostic Solution for the value of the loan.
• Grifols Group aims to reinforce its presence in China. In March 2019, Grifols Group entered into a shares exchange agreement with Shanghai RAAS Blood Products Co. Ltd. (hereinafter SRAAS), through which Grifols Group should deliver 90 shares of its US subsidiary Grifols Diagnostic Solutions Inc. (GDS) (representing 45% of the economic rights and 40% of the voting rights), and in exchange for 1,766 million of SRAAS shares (representing 26.2% of the share capital). Thus, such transaction does not entail a cash flow movement.

The exchange ratio determined upon that date, was estimated using the stock price for SRAAS and discounted cash flows and market multiples for GDS.

Grifols Group will retain the control of GDS through the retention of the 55% of the economic rights and 60% of the voting rights.

As of 30 September 2019, the Grifols Group obtained the authorization from the US agency, "Committee on Foreign Investment in the United States" (CFIUS) and on 13 November 2019, Shanghai RAAS Blood Products, Co. Ltd. obtained the authorization from the Chinese Securities Regulatory Commission (CRSC).

As of 31 December 2019, Grifols, S.A. delivered 90 shares of its subsidiary GDS in exchange of an equity instrument in an associated company (equivalent to 1,766 million of SRAAS shares) because at that date no shares of SRAAS were received. Such contractual right was classified as an available for sale financial asset.

As a result of the operation described, the Company recognized under the heading "Other current financial assets" the contractual right classified as an available‐for‐sale asset amounting to Euros 1,717 million for the fair value of the share delivered, recording a result in the income statement of Euros 807 million for the difference between the mentioned value and the book value of the share delivered.

Finally, the directly attributable costs to the future acquisition of SRAAS were recognized as a Current Asset

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

amounting to EUR 12 million as of 31st December 2019 and are presented under chapter "Prepayments for current assets". Subsequently, such costs have been included in the initial carrying amount at the date of acquisition of SRAAS.

(a) Investments in Group companies

Details of investments in Group companies are provided in Appendix I.

Subsidiaries' activities comprise the following:

‐ Industrial activity: consisting of the manufacture, preparation and sale of therapeutic products and other pharmaceutical specialities, particularly hemoderivatives and parenteral solutions, reagents, chemical products for use in laboratories and healthcare centres, and medical‐surgical materials, equipment and instruments; the collection and analysis of products of biological origin, and the procurement of human plasma.

‐ Commercial activity: consisting primarily of the marketing of products manufactured by the industrial Group companies.

‐ Service activity: comprising the management of business trips for Group companies, the preparation and implementation of engineering projects for both the Group and third parties, and the rendering of centralised services such as accounting, human resources, marketing, etc. This activity also includes the reinsurance of the Group's insurance policies.

The percentage ownerships included in Appendix I reconcile with the voting rights the Company has in its subsidiaries, except for: Grifols Thailand, Ltd. (48% ownership) and Grifols Malaysia Sdn Bhd (30% ownership), in which the Company has majority voting rights through the type of shares it holds in Grifols Thailand, Ltd and a contract entered into with the other shareholder and the pledging of this shareholder's shares in Grifols Malaysia.

(i) Foreign currency

The functional currencies of foreign operations are the currencies of the countries in which they are domiciled, except for Grifols Worldwide Operations Limited, the functional currency of which is the US Dollar.

(b) Other Information

The subsidiaries have been audited/reviewed by the associates of KPMG International in the countries in which they are domiciled, with the exception of Grifols Argentina, S.A. (audited by Alexia Consulting group, S.R.L.), Grifols Polska Sp.z.o.o. (audited by PKF Consult) and Grifols Japan K.K (audited by Takuya Matsuo).

VCN Biosciencies, S.L., Kiro Grifols, S.L., Grifols Diagnostic Equip Taiwan, Ltd and Aigües Minerals de Vilajuïga, S.A., Biomat USA South, Inc., Gripdan Invest, S.L., and Grifols Pharmaceutical Technology Co., Ltd. Beijing Branch have not been audited.

(13) Financial Assets by Category

(a) Classification of financial assets by category

The classification of financial assets by category and class and a comparison of the fair value and the carrying amount are provided in Appendix II.

(i) Net losses and gains by category of financial asset

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

Net losses and gains by category of financial asset are as follows:

	Euros
2020	Loans and receivables	Total
Finance income at amortised cost, Group companies Finance income at amortised cost	230,509,859 2,649	230,509,859 2,649
Net gains in profit and loss	230,512,508	230,512,508
Total	230,512,508	230,512,508

	Euros
2019	Loans and receivables	Available for sale financial assets	Total
Finance income at amortised cost, Group companies	72,454,130	--	72,454,130
Finance income at amortised cost	3,783	--	3,783
Profit for disposal	--	807,651,582	807,651,582
Net gains in profit and loss	72,457,913	807,651,582	880,109,495
Total	72,457,913	807,651,582	880,109,495

(14) Investments and Trade Receivables

(a) Investments in Group companies

Details of investments in Group companies and related parties are as follows:

		Euros
	2020		2019
	Non-current	Current	Non-current	Current
Group
Loans	7,401,800,000	113,600,000	7,215,503,793	13,600,000
Receivables, tax effect (note 21)		24,435,088		20,910,486
Interest		26,440,645		2,435,815
Total	7,401,800,000	164,475,733	7,215,503,793	36,946,301

At 31 December 2020 the Company has several loans with Group companies. The most significant loans are:

a) Three participating loans with a subsidiary that accrue interest at a market rate, with no due date established and an amount of Euros 3,494 million.

b) Loans totalling Euros 3,908 million that accrue interest at a market rate (see Appendix II).

Current loans with Group companies increases by Euros 100 million. This rise is a transfer through a liquidity commitment.

Interest corresponds to the interest on the participating loan with Grifols Worldwide Operations Limited.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

At 31 December 2019 the Company had a balance of Euros 104 thousand corresponding to cash pooling accounts with Group companies (see note 19 (b)). These receivables accrue interest at a rate of 4.33% (interest rate on the Group senior loan plus a spread of 0.75%) and they fall due in 2027.

(b) Investments

Details of investments are as follows:

	Euros
	2020		2019
Non-current	Current	Non-current	Current
1,120,792	--	--	--
	9,808,729	--	1,727,428,024
1,551,818	4,856	1,641,525	4,856
2,672,610	9,813,585	1,641,525	1,727,432,880

At 31 December 2020, Euros 749 thousand (Euros 832 thousand in 2019) of guarantees and deposits are associated with leases with Centurion Real Estate S.A (formerly Scranton Enterprises B.V.), a related party of Grifols S.A. (see note 23) and Euros 559 thousand correspond to leases arranged with a Group company.

Equity instruments includes the acquisition of Savara, Inc shares.

Other current financial assets of 2019 include an amount of Euros 1,717 million corresponding to 26.2% shares in Shanghai RAAS Blood Products Co. Ltd. pending to be received (see note 12).

(c) Trade and other receivables

Details of trade and other receivables are as follows:

	Euros
	2020 2019
	Current	Current
Group
Trade receivables (note 23)	41,297,482	45,736,628
Unrelated parties
Trade receivables	1,838,664	2,636,448
Other receivables	119,451	337,758
Personnel	207,916	178,293
Taxation authorities, income tax (note 21)	11,967,075	5,681,793
Public entities, other (note 21)	15,231,789	3,707,308
Total	70,662,377	58,278,228

Taxation authorities, income tax and Public entities, other, at 31 December 2020 and 2019 corresponds almost fully to the recovery of the value added tax. The Company files consolidated VAT and income tax returns.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(d) Amounts denominated in foreign currencies

Details of monetary financial assets denominated in foreign currencies are as follows:

	Euros
2020	US Dollar	Other	Total
Trade and other receivables
Trade receivables – current	138,201		138,201
Trade receivables from Group companies and associates – current	1,713,686	2,948	1,716,634
Other receivables	899	185	1,084
Investments in Group companies and others
associates, current
Other financial assets	9,808,730		9,808,730
Total current financial assets	11,661,516	3,133	11,664,649
Total financial assets	11,661,516	3,133	11,664,649

	Euros
2019	US Dollar	Other	Total
Trade and other receivables Trade receivables – current Trade receivables from Group companies and associates – current Other receivables	150,624 921,895 4,241	-- -- 1,168	150,624 921,895 5,409
Investments in Group companies and others associates, current Other financial assets Total current financial assets	10,690,423 11,767,183	-- 1,168	10,690,423 11,768,351
Total financial assets	11,767,183	1,168	11,768,351

Details of exchange differences recognised in profit or loss on financial instruments, distinguishing between settled and outstanding transactions, are as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Euros
	2020		2019
	Settled	Outstanding Settled		Outstanding
Investments in Group companies Loans to Group companies	--	--	(635,918)	--
Total non-current financial assets	--	--	(635,918)	--
Trade and other receivables
Trade receivables – current	141,336	9,787	(20,079)	(147,817)
Trade receivables from Group companies – current Current investments	--	(58,167)	--	(14,546)
Loans to Group companies	(342,883)	--	8,475	--
Available-for-sale assets	4,833,284	--	--	--
Cash and cash equivalents
Cash	3,618	(1,051,982)	--	--
Total current financial assets	4,635,355	(1,100,362)	(11,604)	(162,363)
Total financial assets	4,635,355	(1,100,362)	(647,522)	(162,363)

(15) Prepayments

At 31 December 2020 and 2019, prepayments include insurance premium and maintenance prepayments. Additionally, at 31 December 2019 this item included costs for the Shanghai RAAS transaction (Euros 12 millions) (see note 12).

(16) Equity

Details of equity and movement during the year are shown in the statement of changes in equity.

(a) Capital

At 31 December 2020 and 2019 the share capital of Grifols S.A. amounts to Euros 119,603,705 and is represented by:

‐ Class A shares: 426,129,798 ordinary shares of Euros 0.25 par value each, subscribed and fully paid and of the same class and series, and which are ordinary shares of the Company

‐ Class B shares: 261,425,110 non‐voting preference shares of Euros 0.05 par value each, of the same class and series, and with the preferential rights set forth in the Company's by‐laws.

The main characteristics of the Class B shares are as follows:

• Each Class B share entitles its holder to receive a minimum annual preferred dividend out of the distributable profits at the end of each year equal to Euros 0.01 per Class B share provided that the aggregate preferred dividend does not exceed the distributable profits for that year and a distribution of dividends has been approved by the Company's shareholders. This preferred dividend is not cumulative if sufficient distributable profits are not obtained in the period.
• Each Class B share holder is entitled to receive, in addition to the above‐mentioned preferred dividend, the same dividends and other distributions as for one Grifols ordinary share.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

• Each Class B share entitles the holder to its redemption under certain circumstances, if a takeover bid for all or part of the shares in the Company has been made, except if holders of Class B shares have been entitled to participate in the bid on the same terms as holders of Class A shares. The redemption terms and conditions reflected in the Company's by‐laws limit the amount that may be redeemed, requiring that sufficient distributable reserves be available, and limit the percentage of shares to be redeemed in line with the ordinary shares to which the bid is addressed.
• In the event the Company were to be wound up and liquidated, each Class B share entitles the holder to receive, before any amounts are paid to holders of ordinary shares, an amount equal to the sum of (i) the par value of the Class B share, and (ii) the share premium paid for the Class B share when it was subscribed. In addition to the Class B liquidation preference amount, each holder is entitled to receive the same liquidation amount that is paid for each ordinary share. These shares are freely transferable.

The Company's knowledge of its shareholders is based on information provided voluntarily or in compliance with applicable legislation. According to the information available to the Company, there are no interests higher than 10% with voting rights at 31 December 2020 and 2019.

(b) Share premium

This reserve is freely distributable.

(c) Reserves

Details of reserves and movement during the year are shown in Appendix III.

During 2019 the Company settled the 2016 RSU plan causing an increase of Euros 535,405 in reserves. In 2020 the Company has settled the 2017 RSU plan leading to a rise of Euros 1,483,465 in reserves.

(i) Legal reserve

The legal reserve has been appropriated in compliance with article 274 of the Spanish Companies Act, which requires that companies transfer 10% of profits for the year to a legal reserve until this reserve reaches an amount equal to 20% of share capital. At 31 December 2019 and 2020, the legal reserve represents 20% of share capital.

The legal reserve is not distributable to shareholders and if it is used to offset losses, in the event that no other reserves are available, the reserve must be replenished with future profits.

(ii) Treasury stock and reserve for Company shares

At the ordinary general meeting held on 29 May 2015 the shareholders of the Company agreed to authorise the acquisition of a maximum of treasury stock equivalent to 10% of the Company's share capital at a minimum price equal to the par value of shares and a maximum equal to the price quoted on the stock exchange on the date of acquisition or, where applicable, the price authorised by the Spanish National Securities Market Commission.

This acquisition has been authorised for a period of five years from the date this decision was taken. Shares acquired may be handed over to the Group's employees or directors either directly or as a result of them exercising share options they may hold.

At 31 December 2020 and 2019 the Company does not have any Class A treasury stock.

Movement in Class B treasury stock during 2020 and 2019 was as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

		Euros
	Number of
	Class B shares	Nominal
Balance at 1 January 2019	3,818,451	55,441,210
Disposals of Class B shares	(403,399)	(5,857,069)
Balance at 31 December 2019	3,415,052	49,584,141
Disposals of Class B shares	(402,888)	(5,849,649)
Balance at 31 December 2020	3,012,164	43,734,492

In March 2019 the Group delivered 403,399 treasury stocks (Class B shares) to eligible employees as compensation for the Restricted Share Unit Retention Plan, of which 186,614 were given to Company employees (see note 16 (d)).

In March 2020 the Group delivered 402,888 treasury stocks (Class B shares) to eligible employees as compensation for the Restricted Share Unit Retention Plan, of which 145,567 were given to Company employees (see note 16 (d)).

The Company held Class B treasury stock equivalent to 0.4% of its capital at 31 December 2020 (0.5% of capital at 31 December 2019).

(iii) Differences on redenomination of capital to Euros

This reserve is not distributable.

(iv) Voluntary reserves

These reserves are freely distributable.

(d) Other own equity instruments

For the annual bonus, the Group has set up a Restricted Share Unit Retention Plan (RSU Plan), for certain employees. Under this plan, employees can choose to receive up to 50% of their yearly bonus as non‐voting Class B ordinary shares (Grifols Class B Shares) or Grifols American Depositary Shares (Grifols ADS), and the Company will match this with an additional 50% in RSU.

Grifols Class B Shares and Grifols ADS are valued at bonus grant date.

These RSU will have a vesting period of two years and one day and, subsequently, they will be exchanged for Grifols Class B Shares or Grifols ADS (American Depositary Share representing 1 Class B Share).

If an eligible employee leaves the Company or is terminated with cause before the vesting period, they will not be entitled to the additional RSU.

At 31 December 2019, the Company settled the 2016 RSU plan for an amount of Euros 5,652 thousand, of which 2,715 thousand were from the Company.

At 31 December 2020, the Company has settled the 2017 RSU plan for an amount of Euros 5,679 thousand, of which 2,378 thousand are from the Company.

Because this commitment is settled in shares, it is recognised in equity and it totals Euros 13,880 thousand at 31 December 2020 (Euros 12,498 thousand in 2019).

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(17) Other Provisions, Other Guarantees with Third Parties and Other Contingent Liabilities

(a) Contingencies

Contingent liabilities for bank and other guarantees are disclosed in note 19. The Company does not expect any significant liabilities to arise from these guarantees.

In the event of a takeover, the Company has agreements with 21 employees/directors whereby they can unilaterally rescind their employment contracts with the Company and are entitled to termination benefits ranging from two to five years' salary.

The Company has three contracts with three members of Senior management who will receive a termination benefit ranging from one to two years' salary, depending on the circumstances.

(18) Financial Liabilities by Category

(a) Classification of financial liabilities by category

The classification of financial liabilities by category and class and a comparison of the fair value with the carrying amount are provided in Appendix IV.

(i) Net losses and gains by financial liability category

Net losses and gains by financial liability category are as follows:

	Euros
2020	Debts and payables	Total
Finance costs at amortised cost, third parties	(109,576,150)	(109,576,150)
Finance costs at amortised cost, Group companies	(165,761,961)	(165,761,961)
Net losses in profit and loss	(275,338,111)	(275,338,111)
Total	(275,338,111)	(275,338,111)

	Euros
2019	Debts and payables	Total
Finance costs at amortised cost, third parties	(62,480,880)	(62,480,880)
Finance costs at amortised cost, Group companies	(100,006,175)	(100,006,175)
Net losses in profit and loss	(162,487,055)	(162,487,055)
Total	(162,487,055)	(162,487,055)

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(19) Payables and Trade Payables

(a) Group companies and associates

Details of Group companies and associates are as follows:

	Euros
	2020		2019
	Non-current	Current	Non-current	Current
Group
Payables	4,364,424,049	--	4,113,720,823	--
Payables, tax effect (note 21)	--	29,451,840	--	20,102,406
Interest	--	13,837,433	--	15,183,517
Total	4,364,424,049	43,289,273	4,113,720,823	35,285,923

Details of payables to Group companies do not include trade payables to Group companies, details of which are provided in section d) of this note.

(b) Payables

Details of payables are as follows:

	Euros
	2020		2019
	Non-current	Current	Non-current	Current
Unrelated parties
Promissory notes	2,644,914,563	13,102,778	2,644,914,563	3,255,873
Loans and borrowings	1,456,022,801	50,077,832	1,491,826,997	23,095,616
Interest	--	527,964	--	580,898
Finance lease payables (note 8)	1,057,963	1,055,848	1,827,205	968,316
Payables	788,383	1,287,336	1,314,361	17,131,759
Guarantees and deposits received	--	--	--	1,333
Total	4,102,783,710	66,051,758	4,139,883,126	45,033,795

On 15 November 2019 the Group concluded the refinancing process of its senior secured debt for Euros 5,800 million. As for Grifols, S.A., the new financing includes Term Loan B for Euros 1,360 million, aimed at institutional investors; and the issue of two notes for Euros 1,675 million (Senior Secured Notes).

In September 2018, Grifols obtained a new non‐current loan from the European Investment Bank totalling Euros 85,000 thousand that will be used by Grifols to support its investments in R&D, mainly focused on the search for new therapeutic indications for plasma‐derived protein therapies. The financial terms include a fixed interest rate, a maturity of 10 years with a grace period of two years. On 5 December 2017, Grifols, S.A. arranged loans with the same entity and with the same conditions for a total amount of Euros 85,000 thousand. At 31 December 2020, the carrying amount of the loans obtained from the European Investment Bank totalled Euros 159,375 thousand (Euros 170,000 thousand at 31 December 2019).

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

Senior Notes

On 15 November 2019, as part of Group's debt refinancing process, Grifols, S.A. issued Euros 1,675 million of Senior Secured Notes segmented in two notes of Euros 770 million and Euros 905 million. These notes will mature in 2027 and 2025 and will bear annual interest at rates of 2.25% and 1.625%, respectively. The Notes were admitted to listing on the Irish Stock Exchange.

On 18 April 2017, Grifols, S.A., issued Euros 1,000 million of Senior Unsecured Notes that will mature in 2025 and will bear annual interest at a rate of 3.20%. On 2 May 2017 the Notes were admitted to listing on the Irish Stock Exchange.

There was no movement regarding the Senior Unsecured Notes in 2020.

On 15 November 2019 the Group refinanced its Senior Secured Debt with the existing lenders. For Grifols, S.A. the new senior debt consists of a Term Loan B ("TLB"), which amounts to Euros 1,360 million with a 2.25% margin pegged to Euribor, maturity in 2027 and quasi‐bullet repayment structure.

The terms and conditions of the senior secured debt are as follows:

• Tranche B in Euros:
  • Original principal amount of Euros 1,360 million.
  • Applicable margin of 225 basis points (bp) pegged to Euribor.
  • Quasi‐bullet repayment structure.
  • Maturity in 2027.

Tranche B in Euros in thousands

Currency	Principal
Euros	13,600
Euros	13,600
Euros	13,600
Euros	13,600
Euros	13,600
Euros	13,600
Euros	13,600
Euros	1,264,800
	1,360,000

Both the Senior Term Loans and the Revolving Loans are guaranteed by Grifols, S.A. and certain significant subsidiaries of Grifols, S.A. that together with Grifols, S.A. represent, in the aggregate, at least 70% of the consolidated EBITDA of the Group.

The Notes have been issued by Grifols S.A. and are guaranteed on a senior secured basis by subsidiaries of Grifols, S.A. that are guarantors and co‐borrower under the new credit contract (New Credit Facilities). The guarantors are Grifols Worldwide Operations Limited, Biomat USA, Inc., Grifols Biologicals Inc., Grifols Shared Services North America, Inc., Talecris Plasma Resources, Inc.., Grifols Therapeutics, Inc., Instituto Grifols, S.A., Grifols Worldwide Operations USA, Inc., Grifols USA, Llc. and Grifols International, S.A.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

In accordance with the senior secured debt contract, the Group is subject to compliance with some covenants. At 31 December 2020 and 2019, the Group complies with the covenants in the contract.

(c) Other information on payables

(i) Main characteristics of payables

The terms and conditions of loans and payables are provided in Appendix VI.

Non‐current and current loans and borrowings are presented net of loan arrangement costs, which at 31 December 2020 amount to Euros 20,985 thousand (Euros 20,717 thousand at 31 December 2019).

The Company has extended guarantees to banks on behalf of Group companies for Euros 2,923 thousand at 31 December 2020 (Euros 1,480 thousand at 31 December 2019).

(d) Trade and other payables

Details of trade and other payables are as follows:

	Euros
	2020	2019
	Current	Current
Group
Suppliers (note 23)	12,402,101	51,028,984
Related parties
Suppliers (note 23)	7,474,787	4,878,151
Unrelated parties
Suppliers	42,236,056	44,701,736
Personnel	6,154,302	11,108,123
Taxation authorities, income tax
Public entities, other (note 21)	2,906,710	23,241,926
Total	71,173,956	134,958,920

(e) Classification by maturity

The classification of financial liabilities by maturity is included in Appendix V.

(f) Amounts denominated in foreign currencies

The Euro value of monetary financial liabilities denominated in foreign currencies is as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

			2020
			Euros
	US Dollar	Chinese Yuan	Brazilian Real	Other currencies	Total
Short term debt with group companies	1,533	--	--	(3,007)	(1,474)
Suppliers	2,748,364	12,523	--	5,598	2,766,485
Suppliers, Group companies	298,665	336,829	259,251	29,073	923,818
Total current liabilities	3,048,562	349,352	259,251	31,664	3,688,829
Total financial liabilities	3,048,562	349,352	259,251	31,664	3,688,829

			2019
	Euros
	US Dollar	Argentine Peso	Brazilian Real	Other currencies	Total
Short term debt with group companies	10,471	--	--	--	10,471
Suppliers	6,416,509	84	--	10,393	6,426,986
Suppliers, Group companies	4,937,214	--	365,149	90,583	5,392,946
Other financial liabilities	115	--	--	167	282
Total current liabilities	11,364,309	84	365,149	101,143	11,830,685
Total financial liabilities	11,364,309	84	365,149	101,143	11,830,685

Details of exchange differences recognised in profit or loss on financial instruments, distinguishing between settled and outstanding transactions, are as follows:

	Euros
	2020		2019
	Settled	Outstanding	Settled	Outstanding
Payables to Group companies and associates, non-current	1,054	52	(7,994)	167
Total non-current liabilities	1,054	52	(7,994)	167
Current payables
Loans and borrow ings	291,508	--	(163,362)	(3,808,623)
Suppliers	438,352	173,940	83,374	79,006
Group companies
Suppliers, Group companies	198,177	109,892	(3,044)	100,613
Total current liabilities	928,037	283,832	(83,032)	(3,629,004)
Total financial liabilities	929,091	283,884	(91,026)	(3,628,837)

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(20) Late Payments to Suppliers. "Reporting Requirement". Second Additional Provision of Law 31/2014 of 4 December 2014

The average payment period to suppliers for 2020 is 58 days (63 days for 2019). The total average is obtained by dividing the resulting amount of weighting the number of days between the payment date and the issuance date of each invoice with the total amount of each of the invoices, among total amount of invoices.

During 2020 the Company has made payments of Euros 261,945 thousand (Euros 214,449 thousand at 2019). Outstanding payments at 31 December 2020 total Euros 26,428 thousand (Euros 26,943 thousand for 2019). In 2020 the ratio of paid operations stands at 58 days and the ratio of operations payable stands at 54 days (64 days and 57 days respectively in 2019).

(21) Taxation

Details of balances with public entities are as follows:

	Euros
	2020		2019
	Non-current	Current	Non-current	Current
Assets Deferred tax assets	18,129,741	--	16,717,390	--
Current tax assets Value added tax and similar	--	11,967,075	--	5,681,793
taxes	--	15,231,789	--	3,707,308
Total	18,129,741	27,198,864	16,717,390	9,389,101
Liabilities
Deferred tax liabilities	1,217,288	--	1,444,100	--
Social Security	--	1,059,636	--	1,052,334
Withholdings	--	1,847,074	--	22,189,592
Total	1,217,288	2,906,710	1,444,100	23,241,926

Details by company of intercompany receivables and payables resulting from the tax effect of filing consolidated tax returns are as follows:

		Euros
	2020	2019
	Current	Current
Receivables (note 14)
Diagnostic Grifols, S.A.	5,628,744	--
Instituto Grifols,S.A.	11,317,957	12,968,673
Biomat,S.A.	110,991	119,292
Grifols International,S.A.	3,487,253	2,278,998
Grifols Movaco,S.A.	2,170,163	4,634,899
Grifols Viajes,S.A.	28,467	39,957
Grifols Engineering,S.A.	81,154	524,266
Gripdan Invest, S.L	1,610,359	344,401
	24,435,088	20,910,486

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Euros
	2020	2019
	Current	Current
Payables (note 19)
Biomat, S.A.	376,658	226,356
Grifols Viajes, S.A	87,668	163,553
Instituto Grifols,S.A.	14,335,015	9,618,662
Diagnostic Grifols,S.A.	--	5,610,550
Laboratorios Grifols,S.A.	4,108,142	2,511,866
Grifols Movaco, S.A	7,575,973	607,447
VCN Biosciencies S.L	1,271,124	633,847
Grifols Engineering,S.A.	890,850	202,931
Grifols International, S.A.	93,549	--
Aigües Minerals de Vilajuïga	402,544	527,194
Araclon Biotech, S.L.	310,317	--
	29,451,840	20,102,406

Balances receivable and payable at 31 December 2020 and 2019 comprise accrued income tax and value added tax.

The Company has the following main applicable taxes open to inspection by the Spanish taxation authorities:

Tax	Years open to inspection
Income tax	2014-2020
Value added tax	2015-2020
Personal income tax	2015-2020
Capital gains tax	2015-2020
Tax on Economic Activities	2015-2020
Social Security	2015-2020
Non-residents	2015-2020
Customs duties	2015-2020

Under prevailing legislation, taxes cannot be considered to be definitively settled until the returns filed have been inspected by the taxation authorities, or the prescription period has elapsed.

Grifols, S.A., in 2020 has been notified of an inspection for corporate income tax from 2014 to 2016 and VAT and withholding tax from 2015 to 2016.

The Company management does not expect any significant liability to derive from these inspections.

(a) Income tax

The Company files consolidated tax returns with Instituto Grifols, S.A., Laboratorios Grifols, S.A., Grifols Movaco, S.A., Biomat, S.A., Grifols International, S.A., Grifols Engineering, S.A., Grifols Viajes, S.A., Gripdan Invest S.L., Araclon Biotech, S.L., Aigües Minerals de Vilajuïga and VCN Biosciences, S.L.

A reconciliation of net income and expenses for the year with the taxable income is provided in Appendix VII.

The relationship between the tax income and accounting profit for the year is shown in Appendix VIII.

Details of the tax income recognised in the income statement are as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Euros
	2020	2019
Current tax Present year	(31,782,910)	(43,798,699)
	(31,782,910)	(43,798,699)
Deferred tax
Source and reversal of temporary differences Property, plant and equipment Others	(921,712) 74,963	(223,258) 982,089--
Deductions generated Deductions applied Adjustment of deductions in prior	(2,824,065) 3,188,299 (439,855)	(4,713,778) 1,521,565 (479,349)
years Other corporate income tax expenses	221,446	--
	(32,483,834)	(46,711,430)

Details of deferred tax assets and liabilities by type of asset and liability are as follows:

	Euros
	Assets Liabilities		Net
	2020	2019	2020	2019	2020	2019
Property, plant and equipment	783,902	85,429	(1,186,916)	(1,410,156)	(403,014)	(1,324,726)
Grants	--	--	(30,372)	(33,944)	(30,372)	(33,944)
Restricted share unit retention			--	--
plan	1,338,252	1,174,776			1,338,252	1,174,766
Group Financial Investments	961,527	961,527	--	--	961,527	961,527
Provisions	290,766	--	--	--	290,766	--
Rights to tax deductions and credits	14,755,294	14,495,658	--	--	14,755,294	14,495,658
Total assets/liabilities	18,129,741	16,717,390	(1,217,288)	(1,444,100)	16,912,453	15,273,281

Grifols, S.A estimates that the total of rights to tax deductions and credits recognized in the balance at 31 December 2020, will recover within 5 years.

In accordance with prevailing tax legislation in Spain, share‐based payments to employees are income tax deductible for the intrinsic amount of the share options when they are exercised, thus giving rise to a deductible temporary difference for the difference between the amount the taxation authorities will admit as a future deduction and the zero carrying amounts of the share‐based payments. At the close of the reporting period, the Company estimates the future tax deduction based on the price of the shares at that time. The amount of the tax deduction is recognised as current or deferred income tax with a balancing entry in the income statement.

Details of deferred tax assets and liabilities that are expected to be realised or reversed in periods exceeding 12 months are as follows:

42

GRIFOLS, S.A.

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Euros
	2020	2019
Deferred tax assets relating to temporary differences	1,389,082	638,408
Total assets	1,389,082	638,408
Deferred tax liabilities	578,561	1,142,858
Net	810,521	(504,450)

(b) Value added tax

Since 1 January 2008, the Company has filed consolidated tax returns with Instituto Grifols, S.A., Laboratorios Grifols, S.A, Grifols Movaco, S.A., Biomat, S.A., Grifols International, S.A., Grifols Engineering, S.A., Grifols Viajes, S.A., Aigües Minerals de Vilajuïga, S.A., Gripdan Invest, S.L. (since 2016), VCN Biosciences, S.L. (since 2017) and Araclon Biotech, S.L. (since 2020).

(22) Environmental Information

Details at 31 December of property, plant and equipment used to minimise the Company's impact on the environment are as follows:

	Euros
		2020
Description	Cost	Accumulated depreciation	Net
Sew age treatment	119,058	(98,533)	20,525
Water saving	330,225	(313,475)	16,750
Electricity saving	1,886,096	(1,242,929)	643,167
Waste management	484,827	(305,406)	179,421
Others	1,946,131	(395,844)	1,550,287
	4,766,337	(2,356,187)	2,410,150

	Euros
		2019
Description	Cost	Accumulated depreciation	Net
Sewage treatment	119,058	(87,146)	31,912
Water saving	330,225	(303,235)	26,990
Electricity saving	1,886,096	(1,092,687)	793,409
Waste management	484,827	(274,037)	210,790
Others	1,378,491	(225,841)	1,152,650
	4,198,697	(1,982,946)	2,215,751

Environmental expenses amount to Euros 194,772 in 2020 (Euros 201,891 in 2019).

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

(23) Related Party Balances and Transactions

(a) Related party balances

Details of balances receivable from and payable to Group companies and related parties and the main characteristics are disclosed in notes 14 and 19.

Details of balances by category are provided in Appendix IX.

(b) Related party transactions

Details of the Company's transactions with related parties are provided in Appendix X.

Services are normally negotiated with Group companies to include a mark‐up of between 5% and 10%.

The Company contributes 0.7% of pre‐tax consolidated profits for each year to a non‐profit organisation.

Transactions with other related parties are conducted at arm's length.

(c) Information on the Company's directors and senior management personnel

In 2020 the independent members of the Company's board of director's accrued Euros 925 thousand in their capacity as such (Euros 925 thousand in 2019). In 2020, the proprietary director received remuneration of Euros 965 thousand (Euros 1,501 thousand in 2019). The members of the Company's board of directors who have a labour relationship with the Company and senior management personnel received total remuneration of Euros 2,876 thousand and Euros 8,196 thousand, respectively (Euros 2,489 thousand and Euros 6,828 thousand in 2019). During the fiscal year 2020 Directors other external received a remuneration amounting Euros 200 thousand (Euros 602 thousand in 2019).

Members of the board of directors have not received any loans or advances nor has the Company extended any guarantees on their behalf. The Company has no pension or life insurance obligations with its former or current directors or senior management personnel. In addition, termination benefit commitments are in place for certain Company directors and senior management personnel (see note 17).

During 2020, the Company has paid insurance premiums for civil liability of directors amounting to Euros 702 thousand (Euros 326 thousand in 2019).

(d) Conflicts of interest concerning the directors

The directors of the Company and their related parties have had no conflicts of interest requiring disclosure in accordance with article 229 of the Revised Spanish Companies Act.

(24) Income and Expenses

(a) Revenues

Details of revenues by category of activity and geographical market are shown in Appendix XI.

(b) Supplies

Details of other supplies used are as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Euros
	2020	2019
Other supplies used Purchases of spare parts Change in inventories	7,343,326 (1,333,664)	5,446,070 (992,202)
	6,009,662	4,453,868

(c) Employee benefits expense and provisions

Details of employee benefits expense are as follows:

	Euros
	2020	2019
Employee benefits expense
Social Security payable by the Company	10,878,884	9,799,822
Defined contribution plan contributions	163,417	150,654
Other employee benefits expenses	1,810,913	2,696,870
Annual contributions	82,735	279,424
	12,935,949	12,926,770

(25) Employee Information

The average headcount of the Company, distributed by department, is as follows:

		Number
	2020	2019
Technical area	123	110
Administration and other General management	539 75	496 65
	737	671

At 31 December 2020 and 2019 the distribution by gender of Company personnel and the members of the board of directors is as follows:

		Number
	2020		2019
	Female	Male	Female	Male
Directors	4	9	4	9
Technical area	97	32	94	24
Administration and other	181	371	179	356
General management	39	37	35	37
	321	449	312	426

The average number of Company employees with disability rating of more than 33% distributed by department, is as follows:

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

	Number
	2020	2019
Technical area Administration and other	5 9	3 8
	14	11

(26) Audit Fees

KPMG Auditores, S.L., and Grant Thornton, S.L.P., as co‐auditors of the Company's annual accounts at 31 December 2020 have invoiced the Company fees for exclusively audit services totalling Euros 77,700 (a total of Euros 76,600 in 2019), to be split in half every year.

Additionally, KPMG Auditores, S.L. has invoiced the Company the following fees for professional service regarding the Company's annual accounts during the years ended 31 December 2020 and 2019:

	Euros
	2020	2019
Audit services	1,161,550	1,060,352
Other assurance services	561,100	853,800
	1,722,650	1,914,152

The amounts in the above table include the total fees for services rendered in 2020 and 2019, irrespectively of the date of invoice.

During 2020 other assurance services include audit services for the PCAOB, services relating to the limited review of the half‐ yearly financial statements, a report on agreed‐upon procedures provided by KPMG Auditores, S.L to Grifols, S.A. During 2019 other assurance services included mainly audit services for the PCAOB, the limited review of the half‐yearly financial statements, and a report on agreed‐upon procedures provided by KPMG Auditores, S.L. to Grifols, S.A. and a comfort letter related to debt issuances.

The information relating to non‐audit services provided by KPMG Auditores, S.L. to companies controlled by Grifols, S.A. during the year ended 31 December 2020 is shown in the consolidated annual accounts of Grifols S.A. and subsidiaries at 31 December 2020. Moreover, other entities affiliated to KPMG International have invoiced the Company fees for other services amounting to Euros 99,000 for the year ended 31 December 2020 (Euros 85,000 in 2019) and for other audit services amounting to Euros 243,590.

(27) Subsequent events

On 30 January 2021 Royal Decree 1/2021 of 12 January 2021 was published, amending the Spanish General Chart of Accounts approved by Royal Decree 1514/2007 of 16 November 2007, the Spanish General Chart of Accounts for Small and Medium‐ sized Enterprises approved by Royal Decree 1515/2007 of 16 November 2007; the standards for the preparation of consolidated annual accounts approved by Royal Decree 1159/2010 of 17 September 2010; and the standards for adaptation of the Spanish General Chart of Accounts to non‐profit entities approved by Royal Decree 1491/2011 of 24 October 2011.

The changes to the Spanish Chart of Accounts are applicable to the years commencing on or after 1 January 2021 and focus on the recognition, measurement and disclosure criteria for income on the delivery of goods and services, financial instruments, hedge accounting, measurement of inventories of raw materials quoted by intermediaries who trade therewith and on the definition of fair value.

The individual annual accounts for the first year beginning as of 1 January 2021 shall be presented including comparative

Notes to the Annual Accounts

31 December 2020

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails)

information, although there is no obligation to express again the information for the previous year. Only comparative information shall be presented again provided that all of the criteria approved by the Royal Decree can be applied without retrospective bias, without prejudice to the exceptions set out in the transitional provisions.

The standard is generally applied retrospectively, albeit with alternative practical expedients. However, hedge accounting is applied prospectively, the criteria for classifying financial instruments can be applied prospectively and the criteria for revenue from sales and the rendering of services can be applied prospectively to contracts starting from 1 January 2021 onwards.

The Company's directors are carrying out an assessment of the applicable transition options and of the accounting impacts caused by these amendments, although at the date these individual annual accounts are authorised for issue they still do not have sufficient information to conclude on the results of this analysis".

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)GRIFOLS, S.A. Information on Group Companies, Associates and others 31 December 2020 (Expressed in Euros)

% ownership

												Carry ing a t of moun
Nam e	Regis tered offic e	Activ ity	Dir	Ind	Total	Shar ital e cap	Rese rves	Othe ity ite r equ ms	Interi m div idend	Profit /(loss ) for t he ye ar	Total equi ty	inves tmen t	Divid ends ived in 20 20 rece
0016 Alka hest , Inc	Unite d Sta tes	Rese arch	--	100. 000	100. 000	37,7 68,4 69	(85,1 41,8 86)	1,92 6,93 4	--	(4,65 5,38 0)	(50,1 01,8 63)	--	--
Kiro Grifo ls S. L 0017						3,10 0	11,0 62,4 18	--	--	(4,38 1,09 1)	6,68 4,42 7		--
(form erly Kiro Robo tics S .L.)	Spai n	Rese arch	90.0 00	--	90.0 00							45,7 03,0 50
Arad igm Corp orati 0019 on	Unite d Sta tes	Rese arch	--	35.1 30	35.1 30	--	--	--	--	--	--	--	--
0021 VCN Bios cienc es, S .L.	Spai n	Rese arch	--	86.8 27	86.8 27	215, 930	3,97 1,66 0	--	--	(1,78 8,86 3)	2,39 8,72 7	--	--
0029 Prog enika Biop harm a, S. A.	Spai n	Indu stria l	91.8 80	8.12	100. 000	615, 374	31,5 49,2 53	--	--	2,65 5,56 7	34,8 20,1 94	79,6 19,2 56	--
0032 Instit uto G rifols , S.A	Spai n	Indu stria l	99.9 98	0.00 2	100. 000	1,53 7,98 9	148, 867, 535	1,09 5,96 3	(125 ,000 ,000 )	151, 457, 976	177, 959, 463	2,63 3,95 3	124, 997, 558
ic Gr ifols, 0033 Diag nost s.A.	Spai n	Indu stria l	--	55% (eco ic rig hts)/ nom 60% (vot ing r ights )	55% (eco ic rig hts)/ nom 60% (vot ing r ights )	336, 560	111, 071, 992	117, 389	--	8,13 1,39 2	119, 657, 332	--	--
0034 Grifo ls Mo ,S.A vaco	Spai n	Com ial merc	99.9 99	0.00 1	100. 000	2,40 4,60 1	6,34 2,71 9	277, 763	--	6,71 2,15 5	15,7 37,2 38	4,18 2,38 2	--
0037 Labo rator ios G rifols ,S.A	Spai n	Indu stria l	98.6 00	1.40 0	100. 000	21,7 98,3 60	6,26 2,57 8	273, 787	--	(10,6 36,4 52)	17,6 98,2 72	100, 072, 154	--
0039 Grip dan Inves t, S.L	Spai n	Serv ices	100. 000	--	100. 000	3,00 6,00 0	3,21 0,71 5	--	--	167, 100	6,38 3,81 5	24,5 83,9 93	--
0040 Biom at,S. A.	Spai n	Indu stria l	99.9 00	0.10 0	100. 000	60,1 10	2,03 8,96 8	95,9 09	--	400, 085	2,59 5,07 2	155, 950	--
0041 Grifo ls Int tiona l,S.A erna	Spai n	Com ial merc	99.9 98	0.00 2	100. 000	2,86 0,15 4	26,2 46,7 24	3,04 0,49 2	--	20,7 49,5 67	52,8 96,9 37	5,90 0,58 5	--
0042 Grifo ls En gine ering ,S.A	Spai n	Indu stria l	99.9 50	0.05 0	100. 000	60,1 20	2,20 2,38 6	52,4 29	--	(53,7 97)	2,26 1,13 8	112, 519	--
0045 Grifo ls Vi ajes ,S.A	Spai n	Serv ices	99.9 00	0.10 0	100. 000	60,1 10	383, 797	--	--	44,9 27	488, 834	60,1 61	--
0048 Arac lon B iotec h, S. L.	Spai n	Rese arch	--	75.1 00	75.1 00	12,0 63	1,70 1,36 8	--	--	(6,09 0,77 0)	(4,37 7,33 9)	--	--
Grifo ls W orldw ide O tions USA pera 0050						1	39,8 84,4 17	(377 ,973 )	--	1,33 3,15 7	40,8 39,6 02	--	--
Inc.	Unite d Sta tes	Indu stria l	--	100. 000	100. 000
0051 Grifo ls Ch ile,S .A.	Chile	Com ial merc	99.0 00	--	99.0 00	385, 453	23,6 30,2 53	(3,81 0,73 6)	--	385, 692	20,5 90,6 62	385, 454	--
0052 Grifo ls Ar gent ina,S .A.	Arge ntina	Com ial merc	95.0 10	4.99 0	100. 000	955, 675	22,5 05,6 87	(21,2 34,8 25)	--	642, 626	2,86 9,16 4	2,75 9,58 3	--
0054 Logí stica Grif ols,S .A. d e CV	Mex ico	Com ial merc	99.9 90	0.01 0	100. 000	92,2 79	4,18 2,03 0	(818 ,984 )	--	282, 593	3,73 7,91 8	235, 258	--
Grifo ls Po rtuga l Pro duct os 0055						511, 806	8,32 9,68 2			,747	8,47 1,74 0
Farm acéu tiocs e H ospit alare s,Ld a.	Portu gal	Com ial merc	0.01 0	99.9 90	100. 000			--	--	(369 )		--	--
0056 Grifo ls, s. r.o.	Czec h Re publ ic	Com ial merc	100. 000	--	100. 000	51,5 97	5,15 5,04 1	100, 210	--	1,70 4,76 4	7,01 1,61 2	51,6 00	10,2 32,3 11
0057 Grifo ls US A, L LC	Unite d Sta tes	Com ial merc	--	100. 000	100. 000	561, 686	(74,6 49,4 04)	(9,07 0,33 8)	--	120, 190, 114	37,0 32,0 58	--	--
0058 Grifo ls UK ,Ltd.	Unite d Kin gdom	Com ial merc	100. 000	--	100. 000	4,28 5	6,45 1,25 8	(711 ,539 )	--	1,48 4,38 8	7,22 8,39 3	21,3 35,2 36	--
0059 Grifo ls Ita lia,S .p.A.	Italy	Com ial merc	100. 000	--	100. 000	2,49 6,00 0	3,95 4,66 1	--	--	2,30 2,73 2	8,75 3,39 3	5,31 6,36 6	11,8 00,0 00
0062 Grifo ls Br asil,L da.	Braz il	Com ial merc	99.9 996	0.00 01	100. 000	54,9 19,1 16	(2,55 3,74 7)	(21,3 63,5 97)	--	(191 ,004 )	30,8 10,7 68	49,8 38,4 01	--
0063 Grifo ls Fr ,S.A .R.L. ance	Fran ce	Com ial merc	99.9 90	0.01 0	100. 000	657, 734	2,98 7,51 5	--	--	1,19 4,39 9	4,83 9,64 8	657, 657	--
0065 Biom at US A,Inc	Unite d Sta tes	Indu stria l	--	100. 000	100. 000	0	631, 794, 000	(22,8 49,6 11)	--	(19,8 02,0 82)	589, 142, 307	--	--
Squa dron Rein Desi gnat ed sura nce
0066 Activ ity C omp any (form erly Squa dron Rein Ltd.) sura nce	Irela nd	Serv ices	--	100. 000	100. 000	635, 000	70,5 46,0 71	(8,96 9,49 2)	--	7,36 1,40 7	69,5 72,9 86	--	--
0067 Grifo ls Bi olog icals , LLC Grifo ls Sh Ser ared vices Nor th	Unite d Sta tes	Indu stria l	--	100. 000	100. 000	1	133, 200, 484	15,6 11,3 92	--	15,1 26,6 36	163, 938, 513	--	--
(form 0068 Ame rica, Inc. erly Grifo .) ls Inc	d Sta Unite tes	Serv ices	100. 000	--	100. 000	(1)	2,11 5,96 9,76 9	172, 365, 154	--	63,4 15,6 10	2,35 1,75 0,53 2	1,21 3,29 4,36 3	1,93 4,20 6
Grifo ls As ia Pa cific Pte. Ltd. 0071	Sing apor e	Com ial merc	100. 000	--	100. 000	362, 387	10,0 30,9 80	60,6 96	--	1,41 1,29 8	11,8 65,3 61	839, 917	--
Grifo ls (T haila nd), Ltd. 0072	Thai land	Com ial merc	--	48.0 00	48.0 00	61,1 98	6,96 4,89 8	884, 003	--	430, 963	8,34 1,06 3	--	--
Grifo ls Ma laysi a Sd n Bh d 0074	Mala ysia	Com ial merc	--	30.0 00	30.0 00	30,2 83	3,09 5,83 2	(280 ,930 )	--	1,33 1,01 4	4,17 6,19 8	--	--

Grifo ls Po lska, Sp.z 0075 .o.o.	Pola nd	Com ial merc	100. 000	--	100. 000	10,7 14	2,94 6,47 6	(14,3 54)	--	237, 577	3,18 0,41 4	10,7 14	--
Grifo ls Mé ,S.A CV 0078 xico . de	Mex ico	Com ial merc	99.9 80	0.02 0	100. 000	461, 397	14,6 05,5 30	(4,19 9,67 5)	--	1,24 6,23 5	12,1 13,4 87	461, 224	--
Grifo 0081 ls Au stral ia Pt y Ltd	Aust ralia	Indu stria l	100. 000	--	100. 000	1,69 5,07 2	9,45 5,49 2	(1,93 8,52 2)	--	414, 124	9,62 6,16 7	34,9 74,2 12	--
				55% (eco ic rig hts)/ nom	55% (eco ic rig hts)/ nom
0084 Med ion D iagn ostic Grif ols A G	Swit zerla nd	Indu stria l	--	60% (vot ing r ights )	60% (vot ing r ights )	2,48 7,15 0	4,55 9,88 5	(319 ,028 )	--	2,27 8,51 2	9,00 6,51 9	--	--
0086 Grifo ls Co lomb da.	Colo mbia	Com ial	99.9 90	0.01 0	100. 000	620	617			10	907	032
ia, Lt Grifo ls No rdic A B	Swe den	merc Com ial	100. 000		100. 000	822,	453,	(355 ,440 )	--	59,1	979,	575, 0	--
0087	Germ	merc Com ial		--		10,3 92	2,95 1,47 2	(113 ,248 )	--	244, 379	3,09 2,99 6	2,67 5,47	--
0089 Grifo ls De utsch land ,Gm bH	any	merc	100. 000	--	100. 000	25,0 00	4,44 2,03 4	(1,00 1,15 1)	(4,40 0,00 0)	6,90 8,16 4	5,97 4,04 7	7,05 5,93 1	14,0 48,8 02
0090 Grifo ls Th eutic LLC erap	Unite d Sta tes	Indu stria l	--	100. 000	100. 000	(2,88 5,73 4)	791, 753, 943	204, 322, 474	--	209, 718, 788	1,20 2,90 9,47 1	--	--
0091 Tale cris Plas ma R Inc. esou rces	Unite d Sta tes	Indu stria l	--	100. 000	100. 000	7	65,7 43,1 40	10,5 47,3 02	--	(6,24 8,57 9)	70,0 41,8 69	--	--
0094 Grifo ls W orldw ide O tions Lim ited pera Grifo ls Ph ceut ical T echn olog arma y	Irela nd	Indu stria l	100. 000	--	100. 000	1	391, 889, 687	(23,9 87,9 04)	11,3 02,2 05	(26,0 29,1 90)	353, 174, 799	512, 244, 040	--
(Sha ngha i) Co ., Ltd . (for merl y Gr ifols 0095	Chin a	Com ial merc	100. 000	--	100. 000	1,00 0,00 0	7,85 6,30 1	(500 ,869 )	--	1,84 6,37 4	10,2 01,8 06		--
Phar eutic al Co nsult ing mac
(Sha ngha i) Co ., Ltd .)												1,00 0,00 0
0097 Grifo ls Sw itzer land , AG	Swit zerla nd	Com ial merc	100. 000	--	100. 000	81,1 89	(235 ,931 )	350, 409	--	7,65 4	203, 320	169, 208	--
Grifo ls Di stics Solu tions Inc 0096 agno			--	55% (eco ic rig hts)/ nom	55% (eco ic rig hts)/ nom	(7)	3,20 1,84 3,15 5	(207 ,469 ,106 )	--	224, 024, 506	3,21 8,39 8,54 8	--	--
(form erly G-C Diag nost ics C orp.)	Unite d Sta tes	Indu stria l		60% (vot ing r ights )	60% (vot ing r ights )
0098 Grifo ls (H .K.), Limit ed	Hong Kon	Com ial merc	--	55% (eco ic rig hts)/ nom	55% (eco ic rig hts)/ nom	37,8 99,3 74	32,6 46,1 72	931, 675	--	5,65 6,82 6	77,1 34,0 47	--	--
	g			60% (vot ing r ights )	60% (vot ing r ights )
0099 Grifo ls Ja KK pan	Japa n	Com ial merc	100. 000	--	100. 000	354, 409	1,44 0,93 2	64,5 78	--	737, 424	2,59 7,34 4	708, 818	--
Grifo ls Ph ical T echn olog ceut arma y 00A1	Chin a	Com ial merc		--	100. 000	--	(5,55 2,57 4)	338, 665	--	(1,31 8,80 6)	(6,53 2,71 4)		--
Co., Ltd. Beiji ng B h ranc			100. 000									0
00A2 Grifo ls Ind ia He althc are P rivat e Ltd	India	Com ial merc	99.9 84	0.01 6	100. 000	1,68 8	719, 173	(169 ,405 )	--	29,9 83	581, 440	599, 086	--
00A4 Grifo ls Ca nadá , Ltd	Cana da	Indu stria l	--	100. 000	100. 000	6	2,31 8,88 2	(1,39 8,20 0)	(603 ,585 )	1,61 4,91 3	1,93 2,01 7	2,01 6,17 4	--
00A5 Grifo ls Di stics Equ ipme nt Ta iwan Lim it agno	Taiw an	Com ial merc	100. 000	--	100. 000	181, 343	677, 951	53,9 12	--	272, 588	1,18 5,79 4	181, 060	--
00A6 Grifo ls Inn ovat ion a nd N ew T echn olog ies L i	Irela nd	Rese arch	--	100. 000	100. 000	1	100, 950, 416	(8,34 4,35 6)	--	(57,0 08,7 96)	35,5 97,2 65	--	--
Alba Juna The utics , S.L 00A7 rape	Spai n	Rese arch	--	49.0 00	49.0 00	9,80 4	5,70 9,30 7	--	--	(1,36 6) 9,09	4,35 0,01 5	--	--
Inter state Bloo d Ba nk, I 00A8 nc.	Unite d Sta tes	Indu stria l	--	100. 000	100. 000	103, 496	19,6 18,2 70	(2,69 5) 6,28	--	(1,95 3) 3,31	15,0 72,1 68	--	--
Sing ulex , Inc 00B1	Unite d Sta tes	Rese arch	--	19.3 30	19.3 30	--	--	--	--	--	--	--	--
Chiq uito A cquis ition Corp 00B4	Unite d Sta tes	Corp orate	--	100. 000	100. 000	0	52,3 74,3 41	(7,08 2) 3,46	--	7,71 9,55 8	53,0 10,4 36	--	--
Acce ss B iolog icals , LLC . and Sub sidia ries. 00B5	Unite d Sta tes	Indu stria l	--	49.0 00	49.0 00	3,99 7,70 5			--	15,9 40,7 68	19,9 38,4 72	--	--
Aigü es M inera ls Vi lajuïg 00B7 a	Spai n	Indu stria l	99.9 90	0.01 0	100. 000	75,0 00	3,40 7,58 1	--	--	(1,70 8,63 4)	1,77 3,94 7	38,2 55	--
Giga Gen Inc. 00B8	Unite d Sta tes	Indu stria l	--	43.9 60	43.9 60	866	16,9 52,0 25	--	--	(2,27 2,90 9)	14,6 79,9 82	--	--
Plas ita H ealth Gm bH 00B9 mav care	Germ any	Indu stria l	--	50.0 00	50.0 00	25,0 00	1,04 3,17 6	20,0 00,0 00	--	756, 777	21,8 24,9 53	--	--
Goe tech LLC (D/B /A M edke ) 00C 1 eper	Unite d Sta tes	Indu stria l	--	100. 000	100. 000	--	45,1 04,4 61	1,23 7,30 8	--	1,90 0,79 3	48,2 42,5 63	--	--
Haem a AG 00C2	Germ any	Indu stria l	--	--	--	15,0 00,0 00	38,0 79,8 62	(989 )	--	6,86 1,38 9	59,9 40,2 62	--	--
BPC 00C3 Plas Inc ma,	Unite d Sta tes	Indu stria l	--	--	--	(3,13 0,84 2)	136, 030, 530	(11,4 91,2 45)	--	32,7 51,1 95	154, 159, 638	--	--
ins, S 00C5 Mecw .A.	Spai n	Indu stria l	--	24.9 90	24.9 90	126, 000	4,67 2,74 5	85,5 81	--	(501 ,809 )	4,38 2,51 7	--	--
00C6 Biom at US A So uth, Inc.	Unite d Sta tes	Indu stria l	--	100. 000	100. 000	--	--	--	--	--	--	--	--
, S.A 00C7 Med com	Spai n	Rese arch	--	45.0 00	45.0 00	122, 449	3,99 6,97 7	--	--	(244 ,986 )	3,87 4,43 9	--	--
II G 00C8 Plas ita H ealth mbH mav care	Aust ria	Indus trial		50.0 00	50.0 00	35,0 00	(305 ,105 )	3,00 0,00 0	--	(799 ,864 )	1,93 0,03 1	--	--
Shan ghai RAA S Blo od P rodu cts C o. Lt d. 00D1	China	Corp orate	26.20 0		26.2 00	844, 139, 042	2,24 6,68 1,93 9	4,56 1,95 0	--	139, 459, 000	3,23 4,84 1,93 1	1,80 7,35 1,02 6	2,21 4,46 1
Grifo ls Ko rea C o., L td 00D2	Sout h Kor ea	Com ial merc	100.0 00		100. 000	--	--	--	--	--	--	--	--
Gree n Cr Bioth eutic s, In 00D4 oss erap c.	Cana da	Indus trial	--	100. 000	100. 000	(982 ,816 )	389, 190, 972	(1,95 6,59 6)	--	(14,2 05,4 79)	372, 046, 080	19,7 11,2 78	--
Gree n Cr oss A meri ca, I 00D5 nc.	Unite d Sta tes	Indus trial	--	100. 000	100. 000	21,2 52,2 48	14,5 21,8 32		--	5,39 2,38 8	41,1 66,4 68	--	--
Grifo ls La bora tory Solu tions Inc. 00D8	Unite d Sta tes	Com ial merc	--	100. 000	100. 000	--	--	--	--	--	--	--	--

This appendix forms an integral part of note 12 to the annual accounts, in conjunction with which it should be re

3,947,509,365 165,227,338

Appendix I

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)GRIFOLS, S.A. Information on Group Companies, Associates and others 31 December 2019 (Expressed in Euros)

% ow nersh ip											of ount
	Name	Regis tered office	Activ ity	Dir	Ind	Total	Share capit al	Rese rves	Other equit y item s	Interi m div idend	Profit /(loss ) for t he ye ar	Total equit y	Carry ing am inves tmen t	Divide nds r eceiv ed in 2019
0016	Alka hest, Inc. Kiro Grifo ls S. L	Unite d Sta tes	Rese arch	--	47.5 80	47.5 80	732	5,02 7,483			(19,8 41,1 06)	(14,8 12,89 0)	0	--
0017	(form erly K iro R obot ics S .L.)	Spai n	Rese arch	90.00 0	--	90.00 0	3,000	3,979 ,894	--		(2,91 7,376 ) --	1,065 ,518	36,70 3,050	--
0019	Arad igm C ration orpo	Unite d Sta tes	Rese arch	--	35.13 0	35.13 0	--	--	--		-- --	--	0	--
0021	VCN Bios cienc es, S .L.	Spai n	Rese arch	--	81.34 0	81.34 0	152,4 21	599,0 02	--		(1,56 3,833 ) --	(812 ,410)	0	--
0029	Prog enika Biop harm a, S. A.	Spai n	Indus trial	91.88 0	8.12	100.0 00	615, 374	27,9 55,78 7	--		3,593 ,469 --	32,16 4,62 9	79,6 19,25 6	--
0030	Asoc iació n I+D Prog enika	Spai n	Indus trial	--	--	--	--	--	--		(0) --	(0)	0	--
0032							1,537 ,989	2,50 7,272	903,6 11		149,2 55,02 1 --	154,2 03,89 3		27,7 90,26 8
	Instit uto G rifols , S.A	Spai n	Indus trial	99.99 8	0.002	100.0 00							2,44 1,601
0033	Diag nosti c Gri fols,s .A.	Spai n	Indus trial	--	100.0 00	100.0 00	336,5 60	105,6 66,86 0	112,2 51		5,405 ,132 --	111,5 20,8 03	0	--
0034	Grifo ls Mo ,S.A. vaco	Spai n	Com ial merc	99.99 9	0.00 1	100.0 00	2,404 ,601	3,63 7,786	229, 348		2,704 ,933 --	8,976 ,668	4,13 3,974	--
0037	Labo ios G rifols ,S.A. rator	Spai n	Indus trial	98.60 0	1.400	100.0 00	21,7 98,36 0	(3,39 9,523 )	273, 317		(7,33 7,899 ) --	11,33 4,25 5	83,0 71,68 3	--
0039	Gripd an In vest, S.L	Spai n	Serv ices	100.0 00	--	100.0 00	3,006 ,000	1,347 ,668	--		1,863 ,047 --	6,216 ,715	24,5 83,99 3	1,590 ,454
0040	at,S. Biom A.	Spai n	Indus trial	99.90 0	0.100	100.0 00	60,1 10	1,640 ,405	95,90 9		398,5 63 --	2,194 ,987	155,9 50	760,6 35
0041	Grifo ls Int tiona l,S.A erna	Spai n	Com ial merc	99.99 8	0.002	100.0 00	2,86 0,154	7,603 ,630	2,28 6,152		18,64 3,150 --	31,39 3,085	5,146 ,245	12,52 4,54 3
0042	Grifo ring,S ls En ginee .A.	Spai n	Indus trial	99.95 0	0.050	100.0 00	60,12 0	1,653 ,402	52,42 9		548,9 84 --	2,314 ,935	112,5 19	--
0045	Grifo ls Via jes,S .A.	Spai n	Serv ices	99.90 0	0.100	100.0 00	60,1 10	891,4 86	--		(507 ,689) --	443, 907	60,16 1	--
0048	h, S. Arac lon B iotec L.	Spai n	Rese arch	--	75.10 0	75.10 0	12,06 3	9,633 ,366	--		(7,93 1,998 ) --	1,713 ,431	0	--
0050	Grifo ls Wo rldwi de O tions USA Inc. pera	Unite d Sta tes	Indus trial	--	100.0 00	100.0 00	1	38,2 17,26 0	3,236 ,858		1,667 ,157 --	43,1 21,2 76	0	--
0051	Grifo ls Ch ile,S .A.	Chile	Com ial merc	99.00 0	--	99.00 0	385,4 53	22,7 87,52 6	(3,21 4,36 1)		842, 727 --	20,8 01,34 5	385,4 54	--
0052	Grifo ls Ar gent ina,S .A.	Arge ntina	Com ial merc	95.0 10	4.99 0	100.0 00	955,6 75	21,5 13,73 4	(19,9 15,87 0)		991,9 53 --	3,545 ,493	3,52 7,85 1	--
0054	Logís tica G rifols ,S.A. de C V	Mexi co	Com ial merc	99.99 0	0.010	100.0 00	92,2 79	3,714 ,130	(293 ,013)		467, 900 --	3,98 1,296	235,2 58	--
	Grifo ls Po rtuga l Pro ducto s
0055	Farm acéu tiocs e Ho spita lares ,Lda	Portu gal	Com ial merc	0.010	99.99 0	100.0 00	511,8 06	7,580 ,664	--		749,0 18 --	8,84 1,488	0	--
0056	Grifo ls, s. r.o.	Czec h Re publi c	Com ial merc	100.0 00	--	100.0 00	51,59 7	13,84 7,432	705,8 93		1,510 ,846 --	16,11 5,768	51,60 0	--
0057	Grifo ls US A, LL C	Unite d Sta tes	Com ial merc	--	100.0 00	100.0 00	561,6 86	(193 407) ,565,	(3,60 0) 6,89		118,9 16,00 3 --	(77,6 8) 94,60	0	--
0058	Grifo ls UK ,Ltd.	Unite d Kin gdom	Com ial merc	100.0 00	--	100.0 00	4,28 5	5,360 ,716	(465 ,319)		1,090 ,542 --	5,990 ,224	21,24 5,329	--
0059	Grifo ls Ita lia,S .p.A.	Italy	Com ial merc	100.0 00	--	100.0 00	2,49 6,00 0	13,64 4,87 7	--		2,10 9,784 --	18,25 0,66 1	12,86 2,54 0	--
0062	Grifo ls Br asil,L da.	Braz il	Com ial merc	99.99 96	0.000 1	100.0 00	54,9 19,11 6	(1,43 6,202 )	(8,91 6,09 9)		(1,11 7,545 ) --	43,44 9,270	49,8 38,40 1	--
0063	Grifo ls Fra nce,S .A.R. L.	Fran ce	Com ial merc	99.99 0	0.010	100.0 00	657, 734	2,644 ,095	--		343,4 20 --	3,645 ,249	657,6 57	--
0065	Biom at US A,Inc	d Sta Unite tes	Indus trial	--	100.0 00	100.0 00	0	582,0 46,9 22	30,85 1,598		49,74 7,079 --	662,6 45,5 98	0	--
	Squa dron Rein nce D esign ated sura
0066	Activ ity C ompa ny (form erly S quad ron R einsu Ltd. ) rance	Irelan d	Serv ices	--	100.0 00	100.0 00	635, 000	62,1 54,22 9	(2,73 2,94 0)		8,39 1,931 --	68,44 8,220		--
													0
0067	Grifo ls Bio logic als, L LC.	Unite d Sta tes	Indus trial	--	100.0 00	100.0 00	1	118,0 74,59 6	30,28 3,806		15,12 5,888 --	163,4 84,29 1	0	--
0068	Grifo ls Sh ared Serv ices North Ame rica, Inc.	Unite d Sta tes	Serv ices	100.0 00		100.0 00		096	5		40			2
	(form erly Grifo ls Inc .)				--		(1)	1,519 ,563,	375,6 51,96		601, 738,6 --	2,49 6,95 3,699	1,208 ,937, 518	831,8 75,06
0071	Grifo ls As ia Pa cific Pte. Ltd.	Sing apor e	Com ial merc	100.0 00	--	100.0 00	362,3 87	8,539 ,254	1,107 ,092		1,492 ,079 --	11,50 0,812	792,7 02	--
0072	Grifo ls (Th ailan d), L td.	Thai land	Com ial merc	--	48.0 00	48.0 00	61,1 98	6,62 7,627	1,686 ,440		372,0 75 --	8,74 7,339	0	--
0074	Grifo ls Ma laysi a Sd n Bh d	Mala ysia	Com ial merc	--	30.00 0	30.00 0	30,28 3	2,552 ,337	(23,6 99)		543,4 95 --	3,102 ,415	0	--

0075	Grifo ls Po lska, Sp.z .o.o.	Pola nd	Com ial merc	100.0 00	--	100.0 00	10,71 4	2,50 7,096	188,4 30	--	439, 380	3,145 ,620	10,71 4	--
0078	Grifo S.A. de C ls Mé xico, V	Mexi co	Com ial merc	99.98 0	0.020	100.0 00	461, 397	15,22 7,574	(2,26 7,024 )	--	(622 ,044)	12,79 9,903	461, 224	--
0081							1,695 ,072	9,648 ,377	(2,02 6,234 )	--	(192 ,885)	9,124 ,330		--
	Grifo ls Au strali a Pty Ltd	Aust ralia	Indus trial	100.0 00	--	100.0 00							34,9 74,2 12
0084	Medi on D iagno stic G rifols AG	Switz erlan d	Indus trial	--	100.0 00	100.0 00	2,48 7,150	2,45 8,540	(332 ,279)	--	2,10 1,345	6,714 ,756	0	--
0086	Grifo ls Co lomb ia, Lt da.	Colo mbia	Com ial merc	99.99 0	0.010	100.0 00	822,6 20	228, 600	(202 ,472)	--	225, 018	1,073 ,765	575,0 32	--
0087	Grifo ls No rdic A B	Swed en	Com ial merc	100.0 00	--	100.0 00	10,39 2	2,36 3,439	(245 ,845)	--	588,0 33	2,71 6,01 9	2,67 5,470	--
0089	Grifo ls De utsch land, Gmb H	Germ any	Com ial merc	100.0 00	--	100.0 00	25,0 00	7,356 ,520	(796 ,621)		6,734 ,316	13,31 9,215	12,77 0,553	--
0090	Grifo ls Th eutic LLC	d Sta Unite tes	Indus trial	--	100.0 00	100.0 00	(2,88 5,734 )	758,0 05,12 0	313,2 95,04 6	--	225, 703,0 87	1,294 ,117, 518	0	--
0091	erap Tale cris P lasm a Re ces I sour nc.	Unite d Sta tes	Indus trial	--	100.0 00	100.0 00	7	54,00 3,42 1	14,88 4,45 6	--	11,73 9,719	80,62 7,602	0	--
0094	Grifo ls Wo rldwi de O tions Lim ited	Irelan d	Indus trial	100.0 00		100.0 00	1	84	6		9	6	812, 190,6 49	9
	pera				--			762, 144,8	24,7 15,03	(73,2 35,79 5)	22,1 59,36	735,7 83,49		79,28 4,06
	Grifo ls Ph ceuti cal T echn ology arma
0095	(Sha ngha i) Co ., Ltd . (for merly Grifo ls	Chin a	Com ial merc	100.0 00	--	100.0 00	1,000 ,000	6,40 5,734	(285 ,942)	--	1,450 ,567	8,570 ,359		--
	Phar utica l Con sultin mace g
	(Sha ngha i) Co ., Ltd .)												1,000 ,000
0097	Grifo ls Sw itzerl and, AG	Switz erlan d	Com ial merc	100.0 00		100.0 00	81,18 9	(245 ,913)	349,3 99	--	9,982	194,6 57	169,2 07	--
					--
0096	Grifo tics S ls Dia olutio ns In gnos c			100.0 00	--		(7)	3,02 7,456 ,337	77,78 7,656	--	174,3 86,8 18	3,279 ,630, 804		--
	(form erly G -C D iagno stics Cor p.)	Unite d Sta tes	Indus trial			100.0 00							0
0098				--	100.0 00		37,89 9,374	26,12 7,072	7,124 ,622	--	6,51 9,099	77,67 0,16 7		--
	Grifo ls (H .K.), Limit ed	Hon g Ko ng	Com ial merc			100.0 00							0
0099	Grifo ls Ja KK pan	Japa n	Com ial merc	100.0 00	--	100.0 00	354,4 09	658, 930	182,5 82	--	782,0 03	1,977 ,924	708,8 18	--
	Grifo ls Ph ceuti cal T echn ology Co., arma
00A1	Ltd. B eijing Bran ch	Chin a	Com ial merc		--	100.0 00	--	(4,38 9,998 )	205, 075	--	(1,16 2,57 6)	(5,34 7,499 )		--
				100.0 00									0
00A2	Grifo ls Ind ia He althc are P rivate Ltd	India	Com ial merc	99.98 4	0.016	100.0 00	1,688	632, 966	(87,9 86)	--	86,20 7	632,8 75	599,0 86	--
00A4	Grifo ls Ca nadá , Ltd	Cana da	Indus trial	--	100.0 00	100.0 00	6	26,2 11,62 6	(642 ,204)	--	2,72 0,95 1	28,2 90,38 0	0	--
00A5	Grifo ls Dia tics E quipm ent T aiwa n Lim ite gnos	Taiw an	Com ial merc	100.0 00	--	100.0 00	181,3 43	528,9 06	78,25 0	--	149,0 45	937,5 44	181,0 60	--
00A6	Grifo ls Inn ovati nd N ew T echn ologi es Li on a m	Irelan d	Rese arch	--	100.0 00	100.0 00	1	52,48 0,58 7	(3,08 9,243 )	--	(32,9 56,02 8)	16,43 5,31 7	0	--
00A7	Alba Juna The utics , S.L rape	Spai n	Rese arch	--	49.0 00	30.00 0	7,143	4,77 2,71 6	--	--	(948 ,248)	3,83 1,612	0	--
00A8	Inters Bloo d Ba nk, In tate c.	Unite d Sta tes	Indus trial	--	100.0 00	49.1 90	103,4 96	21,6 68,84 7	(2,27 9,776 )	--	223, 085	19,71 5,652	0	--
00B1	Sing ulex, Inc.	Unite d Sta tes	Rese arch	--	19.33 0	--	--	--	--	--	--	--	0	--
00B2	PBS Acqu isitio n Co rp.	Unite d Sta tes	Indus trial	--	100.0 00	100.0 00	(196 ,180)	(258 ,983)	455, 163	--	--	(0)	0	--
00B4	Chiq uito A cquis ition Corp	Unite d Sta tes	Corp orate	--	100.0 00	100.0 00	0	49,64 3,573	(2,47 4,26 5)	--	2,72 6,82 5	49,8 96,13 4	0	--
00B5	, LLC Sub Acce ss B iolog icals . and sidia ries.	Unite d Sta tes	Indus trial	--	49.0 00	49.0 00	--	--	--	--	--	--	0	--
00B7	Aigü es M inera ls Vil ajuïg a	Spai n	Indus trial	99.99 0	0.010	100.0 00	75,00 0	1,433 ,959	--	--	(1,52 6,37 7)	(17,4 19)	38,25 5	--
00B8	Giga Gen Inc.	Unite d Sta tes	Indus trial	--	43.9 60	43.9 60	1,195	18,92 4,75 5	--	--	1,955 ,767	20,8 81,7 17	0	--
00B9	Plasm avita Hea lthca re Gm bH	Germ any	Indus trial	--	50.00 0	50.00 0	(25,0 00)	3,724 ,939	--	--	(2,43 6,344 )	1,263 ,596	0	--
00C1	Goet LC (D /B/A r) ech L Medk eepe	Unite d Sta tes	Indus trial	--	54.76 0	54.76 0	--	44,1 30,53 0	4,71 7,226	--	429, 368	49,2 77,12 3	0	--
00C2	Haem a AG	Germ any	Indus trial	--	--	--	15,00 0,000	33,0 15,95 1	(989 )	--	4,03 7,888	52,05 2,85 1	0	--
00C3	Cor Biote st Ph arma p	Unite d Sta tes	Indus trial	--	--	--	(3,13 0,842 )	96,74 1,911	1,909 ,947	--	31,75 5,465	127,2 76,48 1	0	--
00C4	Biote st US Cor tion	Unite d Sta tes	Serv ices	--	--	--	87,0 77,67 3	97,00 7,293	4,24 7,484	--	--	188,3 32,45 0	0	--
00C5	pora ins, S Mecw .A.	Spai n	Indus trial	--	24.9 90	24.9 90	00	5	1			6	0
	S.A.		Rese arch				126,0	4,67 2,74	85,58	--	(501 ,809)	4,38 2,51		--
00C7	Medc om,	Spai n		--	45.0 00	45.0 00	122,4 49	6,704 ,139	--	--	(1,43 8,585 )	5,388 ,004

This appendix forms an integral part of note 12 to the annual accounts, in conjunction with which it should be read

2,400,917,023 953,825,030

Classification of Financial Assets by Category

for the year ended 31 December 2020

(Expressed in Euros)

	Eu ros
	No	nt n‐c ur re		Cu nt rre
	Ca ing nt rry am ou	ir lue Fa va	l To ta	Ca ing nt rry am ou	ir lue Fa va	l To ta
d iva b les Lo an s an rec e
Lo an s
ixe d loa F rat e ns	2, 0 0 0, 0 0 0 5 7 5,	2, 0 0 0, 0 0 0 5 7 5,	2, 0 0 0, 0 0 0 5 7 5,	0 0, 0 0 0, 0 0 0 1	0 0, 0 0 0, 0 0 0 1	0 0, 0 0 0, 0 0 0 1
b le loa Va ia rat r e ns	4, 8 2 6, 8 0 0, 0 0 0	4, 8 2 6, 8 0 0, 0 0 0	4, 8 2 6, 8 0 0, 0 0 0	4 0, 0 4 0, 6 4 5	4 0, 0 4 0, 6 4 5	4 0, 0 4 0, 6 4 5
f fec Lo Ta t an s, x e	‐‐	‐‐	‐‐	2 4, 4 3 5, 0 8 8	2 4, 4 3 5, 0 8 8	2 4, 4 3 5, 0 8 8
d De its te p os an g ua ran es	1, 5 5 1, 8 1 8	1, 5 5 1, 8 1 8	1, 5 5 1, 8 1 8	4, 8 5 6	4, 8 5 6	4, 8 5 6
he de b les Ot iva tra r rec e	‐‐	‐‐	‐‐	1 1 9, 4 5 1	1 1 9, 4 5 1	1 1 9, 4 5 1
de iva b les Tr a rec e	‐‐	‐‐	‐‐	4 3, 1 3 6, 1 4 6	4 3, 1 3 6, 1 4 6	4 3, 1 3 6, 1 4 6
he b les Ot iva r rec e	‐‐	‐‐	‐‐	2 0 7, 9 1 6	2 0 7, 9 1 6	2 0 7, 9 1 6
l To ta	7, 4 0 3, 3 5 1, 8 1 8	7, 4 0 3, 3 5 1, 8 1 8	7, 4 0 3, 3 5 1, 8 1 8	2 0 7, 9 4 4, 1 0 2	2 0 7, 9 4 4, 1 0 2	2 0 7, 9 4 4, 1 0 2
la b le f le f l Av i ina ia ts a or sa nc as se
he f ina ia l Ot ts r nc as se :
he f l ( ) Ot ina ia 1 2 ts te r nc as se no	‐‐	‐‐	‐‐	9, 8 0 8, 7 2 9	9, 8 0 8, 7 2 9	9, 8 0 8, 7 2 9
ity ins Eq tru nts u me	2 0, 9 2 1, 1 7	2 0, 9 2 1, 1 7	2 0, 9 2 1, 1 7	‐‐	‐‐	‐‐
l To ta	1, 1 2 0, 7 9 2	1, 1 2 0, 7 9 2	1, 1 2 0, 7 9 2	9, 8 0 8, 7 2 9	9, 8 0 8, 7 2 9	9, 8 0 8, 7 2 9
l f l To ina ia ta ts nc as se	7, 4 0 4, 4 7 2, 6 1 0	7, 4 0 4, 4 7 2, 6 1 0	7, 4 0 4, 4 7 2, 6 1 0	2 1 7, 7 5 2, 8 3 1	2 1 7, 7 5 2, 8 3 1	2 1 7, 7 5 2, 8 3 1

Classification of Financial Assets by Category

for the year ended 31 December 2019

(Expressed in Euros)

	Eur os
		No t n‐c urr en	Cu nt rre
	At ise d ort t t am cos or cos		At	ise d ort t t am cos or cos
	ing Ca nt rry am ou	Fai lue r va	l To ta	ing Ca nt rry am ou	Fai lue r va	l To ta
ab les Loa d eiv ns an rec
Loa ns
ed loa Fix rat e ns	2, 67 1, 60 0, 00 0	2, 67 1, 60 0, 00 0	2, 67 1, 60 0, 00 0	26 72 6, 23 9 ,	26 72 6, 23 9 ,	26 72 6, 23 9 ,
Va ria ble loa rat e ns	4, 54 3, 90 3, 79 3	4, 54 3, 90 3, 79 3	4, 54 3, 90 3, 79 3	‐‐	‐‐	‐‐
ffe Loa Ta ct ns, x e	‐‐	‐‐	‐‐	20 91 0, 48 5 ,	20 91 0, 48 5 ,	20 91 0, 48 5 ,
d De sits nte po an gu ara es	1, 64 1, 52 5	1, 64 1, 52 5	1, 64 1, 52 5	4, 85 6	4, 85 6	4, 85 6
Ot he de eiv ab les tra r rec	‐‐	‐‐	‐‐	33 7, 75 8	33 7, 75 8	33 7, 75 8
de eiv ab les Tra rec	‐‐	‐‐	‐‐	48 37 3, 07 6 ,	48 37 3, 07 6 ,	48 37 3, 07 6 ,
he ab les Ot eiv r rec	‐‐	‐‐	‐‐	178 29 3 ,	178 29 3 ,	178 29 3 ,
tal To	7, 21 7, 14 5, 31 8	7, 21 7, 14 5, 31 8	7, 21 7, 14 5, 31 8	96 53 0, 70 7 ,	96 53 0, 70 7 ,	96 53 0, 70 7 ,
aila ble for sal f al Av ina nci ets e ass					‐‐
he fin l Ot cia ets r an ass :
(no ) Ot he fin cia l 12 ets te r an ass	‐‐	‐‐	‐‐	1, 71 6, 73 2, 74 5	1, 71 6, 73 2, 74 5	1, 71 6, 73 2, 74 5
tal To	‐‐	‐‐	‐‐	1, 71 6, 73 2, 74 5	1, 71 6, 73 2, 74 5	1, 71 6, 73 2, 74 5
tal fin l To cia ets an ass	7, 21 7, 14 5, 31 8	7, 21 7, 14 5, 31 8	7, 21 7, 14 5, 31 8	1, 81 3, 26 3, 45 2	1, 81 3, 26 3, 45 2	1, 81 3, 26 3, 45 2

Details of Reserves and Profit and movement for the year ended 31 December 2020 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

	Eu ro s
	Le l a d g a n ta tu to s ry res erv es	D i f fe re nc es o n la ion f tra t ns o i ta l to Eu ca p ros	Vo lun ta ry res erv es	Pr f i fo he t t o r ea r y	To ta l
Ba lan t 1 Ja 2 0 2 0 ce a nu ar y	2 3, 9 2 0, 7 4 1	3, 0 2 0	6 0 6, 4 8 2, 0 1 7	1, 6 3 0, 2 6 5, 5 9 1	2, 2 6 0, 6 7 1, 3 6 9
Re ise d inc d e co g n om e a n xp en se	--	--	--	6 4, 7 4 8, 2 3 2	6 4, 7 4 8, 2 3 2
Re se rve s			1, 4 9 3, 4 3 7, 6 2 0	( 1, 4 9 3, 4 3 7, 6 2 0 )	--
D iv i de d n	--	--	( 1 1 3, 2 3 0, 4 2 9 )	( 1 3 6, 8 2 7, 9 7 1 )	( 2 0, 0 8, 4 0 0 ) 5 5
O he t ts r m ov em en	--	--	( 1 1, 8 2 3 3 8 ) 5,	--	( 1 1, 8 2 3 3 8 ) 5,
3 1 2 0 2 0 Ba lan t De be ce a ce m r	2 3, 9 2 0, 4 1 7	3, 0 2 0	1, 9 4, 8 6 3, 8 0 7 7	6 4, 4 8, 2 3 2 7	2, 0 6 3, 3 8 6 3 5 5,

Details of Reserves and Profit and movement for the year ended 31 December 2019 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

Eu ro s
Le l a d g a n ta tu to s ry res erv es	D i f fe re nc es o n la ion f tra t ns o i l Eu ta to ca p ros	Vo lun ta ry res erv es	Pr f i fo he t t o r ea r y	To l ta
2 3, 9 2 0, 7 4 1	3, 0 2 0	5 1 4, 8 8 7, 1 4 9	3 2 9, 7 1 8, 2 6 3	8 6 8, 5 2 9, 1 7 3
--	--	--	1, 6 3 0, 2 6 5, 5 9 1	1, 6 3 0, 2 6 5, 5 9 1
		5 3 5, 4 0 5	--	5 3 5, 4 0 5
--	--	9 1, 0 5 9, 4 6 3	9 1, 0 5 9, 4 6 3	--
--	--	--	( 2 3 8, 6 8, 8 0 0 ) 5	( 2 3 8, 6 8, 8 0 0 ) 5
2 3, 9 2 0, 7 4 1	3, 0 2 0	6 0 6, 4 8 2, 0 1 7	1, 6 3 0, 2 6 5, 5 9 1	2, 2 6 0, 6 7 1, 3 6 9
				( )

Details of Financial Liabilities by Category for the year ended 31 December 2020 (Expressed in Euros)

	Eu ros
2 0 2 0	No	t n‐c urr en	Cu nt rre
	Ca ing nt rry am ou	lue Fa ir To ta va		Ca ing nt rry am ou	lue Fa ir va	l To ta
b l f lue h ha L ia i it ies ir it in at a va w c ng es he f d los it t t p ro an s ac co un
bts d b les De an p ay a
ds d he ket b le it ies Bo ot n an r ma r a sec ur
d F ixe rat e	2, 6 4 4, 9 14 5 6 3 ,	2, 7 0 5, 4 3 6, 6 25	2, 6 4 4, 9 14 5 6 3 ,	1 3, 1 0 2, 77 8	1 3, 1 0 2, 77 8	1 3, 1 0 2, 77 8
Lo it h Gr ies an s w ou p co mp an
d F ixe rat e	‐‐	‐‐	‐‐			‐‐
b le Va ia Lo rat r e an s	4, 3 6 4, 4 24 0 4 9 ,	4, 3 6 4, 4 24 0 4 9 ,	4, 3 6 4, 4 24 0 4 9 ,	4 3, 2 8 9, 27 3	4 3, 2 8 9, 27 3	4 3, 2 8 9, 27 3
d bo ing Lo an s an rro w s
d F ixe rat e	1 3 8, 1 25 0 0 0 ,	1 3 8, 1 25 0 0 0 ,	1 3 8, 1 25 0 0 0 ,	21 25 0, 0 0 0 ,	21 25 0, 0 0 0 ,	21 25 0, 0 0 0 ,
b le Va ia rat r e	1, 3 17 8 9 7, 8 0 1 ,	1, 3 17 8 9 7, 8 0 1 ,	1, 3 17 8 9 7, 8 0 1 ,	2 9, 3 5 5, 7 9 7	2 9, 3 5 5, 7 9 7	2 9, 3 5 5, 7 9 7
lea b les F ina nc e se p ay a	1, 0 5 7, 9 6 3	1, 0 5 7, 9 6 3	1, 0 5 7, 9 6 3	1, 0 5 5, 8 4 8	1, 0 5 5, 8 4 8	1, 0 5 5, 8 4 8
he f l l b l Ot ina ia ia i it ies r nc	7 8 8, 3 8 3	7 8 8, 3 8 3	7 8 8, 3 8 3	1, 2 8 7, 3 3 6	1, 2 8 7, 3 3 6	1, 2 8 7, 3 3 6
de d he b les Tra ot an r p ay a
l Su ier p p s	‐‐	‐‐	‐‐	4 9, 7 1 0, 8 4 3	4 9, 7 1 0, 8 4 3	4 9, 7 1 0, 8 4 3
l Su ier Gr ies p p s, ou p co mp an	‐‐	‐‐	‐‐	1 2, 4 0 2, 1 0 1	1 2, 4 0 2, 1 0 1	1 2, 4 0 2, 1 0 1
he b les Ot r p ay a	‐‐	‐‐	‐‐	6, 15 4, 3 0 2	6, 15 4, 3 0 2	6, 15 4, 3 0 2
l f l l b l To ina ia ia i it ies ta nc	8, 4 6 7, 2 0 7, 75 9	8, 5 27 7 2 9, 8 21 ,	8, 4 6 7, 2 0 7, 75 9	17 7, 6 0 8, 27 8	17 7, 6 0 8, 27 8	17 7, 6 0 8, 27 8

(Expressed in Euros) for the year ended 31 December 2019 Details of Financial Liabilities by Category

	Eu ros
20 19	No	t n‐c urr en		Cu nt rre
	ing Ca nt rry am ou	Fai lue r va	l To ta	ing Ca nt rry am ou	Fai lue r va	l To ta
Lia bi liti fa ir lue wit h ha in at es va c ng es	he f it d los t nt pro an s acc ou
bts d b les De an pa ya
nd d he ket b le Bo uri tie ot s an r ma r a sec s
d Fix rat e e	2, 64 4, 91 4, 56 3	2, 75 5, 72 7, 34 2	2, 64 4, 91 4, 56 3	3, 25 5, 87 3	3, 25 5, 87 3	3, 25 5, 87 3
h Loa wit Gr ies ns ou p co mp an
Fix d rat e e	‐‐	‐‐	‐‐	35 28 5, 92 3 ,	35 28 5, 92 3 ,	35 28 5, 92 3 ,
ria b le Va rat Loa e ns	3, 72 0, 82 3 4, 11	3, 72 0, 82 3 4, 11	3, 72 0, 82 3 4, 11	‐‐	‐‐	‐‐
d bo wi Loa ns an rro ngs
d Fix rat e e	15 9, 37 5, 00 0	15 9, 37 5, 00 0	15 9, 37 5, 00 0	‐‐	‐‐	‐‐
b le Va ria rat e	1, 33 2, 45 1, 99 7	1, 33 2, 45 1, 99 7	1, 33 2, 45 1, 99 7	23 67 6, 51 4 ,	23 67 6, 51 4 ,	23 67 6, 51 4 ,
lea b les Fin an ce se pay a	1, 82 7, 20 5	1, 82 7, 20 5	1, 82 7, 20 5	96 8, 31 6	96 8, 31 6	96 8, 31 6
he fin l lia bi liti Ot cia r an es	1, 31 4, 36 1	1, 31 4, 36 1	1, 31 4, 36 1	17, 13 3, 09 2	17, 13 3, 09 2	17, 13 3, 09 2
de d he b les Tra ot an r pay a
lier Su pp s	‐‐	‐‐	‐‐	49 57 9, 88 7 ,	49 57 9, 88 7 ,	49 57 9, 88 7 ,
Su lier Gr ies pp s, ou p co mp an	‐‐	‐‐	‐‐	51 02 8, 98 4 ,	51 02 8, 98 4 ,	51 02 8, 98 4 ,
Ot he b les r pay a	‐‐	‐‐	‐‐	10 8, 12 3 11,	10 8, 12 3 11,	10 8, 12 3 11,
l fin l lia bi liti To cia ta an es	8, 25 3, 60 3, 94 9	8, 36 4, 41 6, 72 8	8, 25 3, 60 3, 94 9	19 2, 03 6, 71 2	19 2, 03 6, 71 2	19 2, 03 6, 71 2

Classification of Financial Liabilities by Maturity for the year ended 31 December 2020 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

				Eur	os
		202 0
	202 1	202 2	202 3	202 4	202 5	Sub t ye seq uen ars	Les t po rtio s cu rren n	Tot al Non Cu t rren
Pay able s
Bon ds a nd o ther rket able uriti ma sec es	13,1 02,7 78	--	--	--	--	2,64 4,91 4,56 1	(13, 102 ,778 )	2,64 4,91 4,56 1
Loa nd b win ns a orro gs	50,6 05,7 98	32,9 40,9 38	32,9 19,6 21	32,7 99,1 57	31,7 55,7 76	1,32 5,60 7,31 0	(50, 605 ,798 )	1,45 6,02 2,80 2
Fina lea bles nce se p aya	1,05 5,84 7	690 ,685	367 ,279	--	--	--	(1,0 55,8 47)	1,05 7,96 4
Oth er fi cial liab ilitie nan s	1,28 7,33 6	529 ,742	101 ,610	103 ,247	53,7 84	--	(1,2 87,3 36)	788 ,383
Gro anie d as iate up c omp s an soc s	43,2 89,2 73	--	--	--	--	4,36 4,42 4,04 9	(43, 289 ,273 )	4,36 4,42 4,04 9
Trad d ot her able e an pay s
Sup plie rs	42,2 30,2 10	--	--	--	--	--	(42, 230 ,210 )	--
Sup plie rs, G ies roup com pan	12,4 02,1 01	--	--	--	--	--	(12, 402 ,101 )	--
Sup plie elat ed p artie rs, r s	7,47 4,78 7	--	--	--	--	--	(7,4 74,7 87)	--
Oth redi tors er c	5,84 6	--	--	--	--	--	(5,8 46)	--
Pers el onn	6,15 4,30 2	--	--	--	--	--	(6,1 54,3 02)
l fin Tota ial li abil ities anc	177 ,608 ,278	34,1 61,3 65	33,3 88,5 10	32,9 02,4 04	31,8 09,5 60	8,33 4,94 5,92 0	(177 ) ,608 ,278	8,46 7,20 7,75 9

Classification of Financial Liabilities by Maturity for the year ended 31 December 2019 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

			Eur os
			201 9
						Tot al
202 0	202 1	202 2	202 3	Sub t ye seq uen ars	Les nt p ort ion s c urre	Non Cu t rren

Pay able s
Bon ds a nd o the ark eta ble urit ies r m sec	3,25 5,87 3	--	--	--	2,6 44, 914 ,563	(3,2 55,8 73)	2,64 4,91 4,56 3
Loa nd bor ings ns a row	23,6 76,5 14	33,3 57,1 57	33,4 00,8 68	33,4 45,0 08	1,39 1,62 3,9 64	(23, 676 ,514 )	1,49 1,82 6,99 7
Fina lea able nce se pay s	968 ,316	949 ,285	577 ,504	300 ,416	--	(968 ,317 )	1,82 7,20 4
Oth er f inan cial liab ilitie s	17,1 33,0 92	884 ,616	429 ,744	--	--	(17, 133 ,092 )	1,31 4,36 0
Gro ies and iate up com pan as soc s	35,2 85,9 23	--	--	--	4,11 3,72 0,82 3	(35, 285 ,923 )	4,11 3,72 0,82 3
Tra de and oth bles er p aya
Sup plie rs	01,7 36 44,7	--	--	--	--	(44, 701 ,736 )	--
Sup Gro plie ies rs, up com pan	51,0 28,9 84	--	--	--	--	(51, 028 ,984 )	--
Sup plie rela ted rties rs, pa	4,87 8,15 1	--	--	--	--	(4,8 78,1 51)	--
Per nel son	11,1 08,1 23	--	--	--	--	(11, 108 ,123 )	--
Tot al f inan cial liab ilitie s	192 ,03 6,7 12	35, 191 ,05 8	34, 408 ,11 6	33, 745 ,424	8,1 50, 259 ,35 0	(19 2,0 36, 713 )	8,2 53, 603 ,94 7

Main characteristics of payables for the year ended 31 December 2020 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

202 0						Eu ros
Loa	Cu	Inte t ra te	Gra nt d ate	Ma	Am eiv ed nt	Bo ok Va	lue
n	rre ncy	res		tur ity	ou rec	Cu nt rre	No ent n-c urr
Gro up
Ca sh ote 19	EU R	3,7 22% ( Gro ior deb t up sen inte t ra te + 5%		202 7			364 424 049
ling (n ) poo		0,7 ) res			--	--	4, , , 4, 364 424 049
							, ,
Un rela ted rtie pa s
Se nio r U ed No tes nse cur	EU R	3.2 0%	26/ 04/ 201 7	26/ 04/ 202 5	1, 000 000 000 , ,	--	991 270 332 , ,
Se nio r S red No tes ecu	EU R	2.2 5%	15/ 11/ 201 9	15/ 11/ 202 7	770 000 000 , ,	--	759 ,7 02, 432
Se r S nio red No tes ecu	EU R	1.6 3%	15/ 11/ 201 9	15/ 02/ 202 5	905 000 000 , ,	--	893 941 99 ,7 ,
Eu Inv est nt B ank rop ean me	EU R	2% 2.0	22/ 12/ 201 7	22/ 12/ 202 7	85, 000 000 ,	10, 625 000 ,	63, 750 000 ,
Eu Inv est nt B ank rop ean me	EU R	2.1 5%	25/ 09/ 201 8	25/ 09/ 202 8	85, 000 000 ,	10, 625 000 ,	74, 375 000 ,
Tra nch e B	EU R	2.2 5%	15/ 11/ 201 9	15/ 11/ 202 7	1, 360 000 000 , ,	10, 663 066 ,	1, 314 ,75 2, 114
Ba nki nte r	EU R	2, 25% - 1 .93 %	21/ 11/ 201 4	30/ 09/ 202 4	10, 000 000 ,	1, 039 356 ,	3, 145 687 ,
Oth er	EU R			202 1	--	527 966 ,	--
Fac tor ing BB VA ,	EU R			202 1	--	17, 125 408 ,	--
					4, 215 000 000 , ,	50, 605 ,7 96	4, 100 937 364 , ,
					4, 215 000 000 , ,	50, 605 796 ,	8, 465 361 413 , ,

Main characteristics of payables for the year ended 31 December 2019 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

201 9						Eu ros
	Cu	Inte t ra te	Gra nt d ate	Ma ity tur		Bo ok Va	lue
Loa n	rre ncy	res			Am nt eiv ed ou rec	Cu nt rre	No ent n-c urr
Gro up
		4, 327 1% ( Gro ior deb t up sen
Ca sh ling (n ote 19 ) poo	EU R	5% ) inte t ra te + 0,7 res		202 7	--	--	4, 113 ,7 20, 823 113 20, 823 4, ,7
Un rela ted rtie pa s
Se nio r U ed No tes nse cur	EU R	3.2 0%	26/ 04/ 201 7	26/ 04/ 202 5	1, 000 000 000 , ,		995 425 ,55 2 ,
Se nio r S red No tes ecu	EU R	2.2 5%	15/ 11/ 201 9	15/ 11/ 202 7	770 000 000 , ,	--	758 212 423 , ,
Se nio r S red No tes ecu	EU R	1.6 3%	15/ 11/ 201 9	15/ 02/ 202 5	905 000 000 , ,	--	891 276 ,5 86 ,
Eu Inv nt B ank est rop ean me	EU R	2.0 2%	22/ 12/ 201 7	22/ 12/ 202 7	85, 000 000 ,	11, 149 039 ,	74, 375 000 ,
Eu Inv est nt B ank rop ean me	EU R	2.1 5%	25/ 09/ 201 8	25/ 09/ 202 8	85, 000 000 ,	--	85, 000 000 ,
Tra nch e B	EU R	5% 2.2	15/ 11/ 201 9	15/ 11/ 202 7	1, 360 000 000 , ,	11, 039 ,5 90	1, 328 266 281 , ,
Ba nki nte r	EU R	2, 25% - 1 .93 %	21/ 11/ 201 4	30/ 09/ 202 4	10, 000 000 ,	1, 016 989 ,	4, 185 ,7 16
Ba Po lar nco pu	EU R	2.0 0%	03/ 03/ 201 5	04/ 03/ 202 0	--	419 891 ,	--
Oth er	EU R			202 0	--	51, 005	--
					4, 215 000 000 , ,	23, 676 ,5 14	4, 136 ,7 41, 558
					4, 215 000 000 , ,	23, 676 514 ,	8, 250 462 381 , ,

Reconciliation between net income and expense for the year

and the tax loss for the year ended 31 December 2020

(Expressed in Euros)

				Eur os
	Inc Sta tem ent om e			Inc om e	and ise d exp ens e rec ogn	in uit eq y
20 20	Inc rea ses	De cre ase s	Ne t	Inc rea ses	De cre ase s	Ne t	al Tot
for Inc and the iod om e exp ens es per			64, 748 232 ,			14, 289	64, 762 52 1 ,
Inc tax om e			( ) 32, 265 427 ,			( ) 3, 572	( ) 32, 269 000 ,
Inc ior tax om e pr yea rs ,			( ) 439 855 ,				( ) 439 855 ,
Oth inc tax er om e			221 446 ,				221 446 ,
fit bef Pro inc tax ore om e			32, 264 398 ,			10, 717	32, 275 115 ,
diff Per t ma nen ere nce s
Ind ivid ual com pan y	11, 965 269 ,	40, 233 78 1 ,	( ) 28, 268 512 ,				( ) 28, 268 512 ,
sol ida adj Tax tio ust nts con n me	3, 500 000 ,	124 997 558 , ,	( ) 121 497 558 , ,				( ) 121 497 558 , ,
diff Te mp ora ry ere nce s			‐‐
Ind ivid ual com pan y			‐‐
Ori ina tin in t g g cur ren yea r	3, 99 1, 460	209 282 ,	3, 782 178 ,				3, 782 178 ,
Ori ina tin in ior g g pr yea rs	2, 428 787 ,	2, 823 965 ,	( ) 395 178 ,				( ) 395 178 ,
Tax los s			( ) 114 114 672 , ,			10, 717	( ) 114 103 955 , ,

Reconciliation between net income and expense for the year

andthe tax loss for the year ended 31 December 2019

(Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails.)

				Eur os
	Inc Sta tem ent om e			Inc om e	and ise d exp ens e rec ogn	in uit eq y
20 19	Inc rea ses	De cre ase s	Ne t	Inc rea ses	De cre ase s	Ne t	al Tot
for Inc and the iod om e exp ens es per			1, 630 265 59 1 , ,			14, 289	1, 630 279 880 , ,
Inc tax om e			( 1) 46, 232 08 ,			( ) 3, 572	( ) 46, 235 653 ,
Inc ior tax om e pr yea rs ,			( ) 479 350 ,				( ) 479 350 ,
fit bef inc Pro tax ore om e			583 160 1, 554 , ,			10, 717	583 564 877 1, , ,
diff Per t ma nen ere nce s
Ind ivid ual com pan y	10, 092 616 ,	1, 719 415 835 , ,	( ) 1, 709 323 219 , ,				( ) 1, 709 323 219 , ,
sol ida adj Tax tio ust nts con n me	2, 36 1, 745	42, 665 900 ,	( ) 40, 304 155 ,				( ) 40, 304 155 ,
diff Te mp ora ry ere nce s			‐‐
Ind ivid ual com pan y			‐‐
Ori ina tin in t g g cur ren yea r	‐‐	2, 247 452 ,	( ) 2, 247 452 ,				( ) 2, 247 452 ,
Ori ina tin in ior g g pr yea rs	98 1, 548	1, 769 420 ,	( ) 787 872 ,				( ) 787 872 ,
los Tax s			( ) 169 108 538 , ,			10, 717	( 1) 169 097 82 , ,

GRIFOLS, S.A. Details of income tax expense/(tax income) related tp profit/(loss) for the year ended 31 December 2020 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails.)

	Eu ros
	Pro fit d l an os s	To tal
Inc d e for t he io d be for tax om e a n xp en se s p er e	3 2, 2 6 4, 3 9 8	3 2, 2 6 4, 3 9 8
Ta t 2 5 % x a	8, 0 6 6, 0 9 9	8, 0 6 6, 0 9 9
No b le inc tax n- a om e
D iv i de ds do b le tax t ion ( t ion ) n u a ex em p ,	( 1 0, 0 5 8, 4 4 5 )	( 1 0, 0 5 8, 4 4 5 )
D iv i de ds fro ies n m g rou p co mp an	( 3 1, 2 4 9, 3 8 9 )	( 3 1, 2 4 9, 3 8 9 )
No de du t i b le n- c ex p en se s
Do t ion na s	2, 7 9 8, 2 4 2	2, 7 9 8, 2 4 2
Sa t ion d f ine nc s a n s	1, 0 0 9	1, 0 0 9
De du t ion d c d i ts for t he t y c s a n re cu rre n ea r	( ) 2, 8 9 0, 0 0 8	( 2, 8 9 0, 0 0 8 )
Pr is ion f f ina ia l f ixe d a ts ov o nc ss e	1, 0 6 7, 0 6 7	1, 0 6 7, 0 6 7
O t he te tax ( t he ter i tor ies ) r c orp ora ex p en se s o r r	2 2 1, 6 4 4	2 2 1, 4 4 6
Pr ior ' a d j tm ts y ea rs us en	( 4 3 9, 8 ) 5 5	( 4 3 9, 8 5 5 )
Ta b le inc / ( tax los ) xa om e s	( 3 2, 4 8 3, 8 3 4 )	( 3 2, 4 8 3, 8 3 4 )

GRIFOLS, S.A. Details of income tax expense/(tax income) related tp profit/(loss) for the year ended 31 December 2019 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish‐language version prevails.)

	Eu ros
	Pro fit d l an os s	To tal
Inc d e for t he io d be for tax om e a n xp en se s p er e	1, 5 8 3, 5 5 4, 1 6 1	1, 5 8 3, 5 5 4, 1 6 1
Ta t 2 5 % x a	3 9 5, 8 8 8, 5 4 0	3 9 5, 8 8 8, 5 4 0
No tax b le inc n- a om e
D iv i de ds do b le tax t ion ( t ion ) n u a ex em p ,	( 2 2 7, 7 8 9, 7 8 3 )	( 2 2 7, 7 8 9, 7 8 3 )
D iv i de ds fro ies n m g rou p co mp an	( 1 0, 6 6 6, 4 7 5 )	( 1 0, 6 6 6, 4 7 5 )
O t he -ta b le inc r n on xa om e	( 2 0 1, 9 1 2, 8 9 5 )	( 2 0 1, 9 1 2, 8 9 5 )
No de du t i b le n- c ex p en se s
Do t ion na s	2, 2 3, 1 1 3 5	2, 5 2 3, 1 1 3
Sa t ion d f ine nc s a n s	4 1	4 1
No de du t i b le n- c ex p en se s	( 1 2 1, 0 2 7 )	( 1 2 1, 0 2 7 )
for De du t ion d c d i ts t he t y c s a n re cu rre n ea r	( 4, 7 1 3, 3 2 8 )	( ) 4, 7 1 3, 3 2 8
f f f Pr is ion ina ia l ixe d a ts ov o nc ss e	5 5 9, 7 3 3	5 5 9, 7 3 3
Pr ior ' a d j tm ts y ea rs us en	( 4 7 9, 3 4 9 )	( 9, 3 9 ) 4 7 4
Ta b le inc / ( los ) tax xa om e s	( 4 6, 7 1 1, 4 3 0 )	( 4 6, 7 1 1, 4 3 0 )

GRIFOLS, S.A Related Party Balances for the year ended 31 December 2020 (Expressed in Euros)

(Free translation from the original in Spanish, In the event of discrepancy, the Spanish-language version prevails,)

	Eu ros
	Gr ou p ies co mp an	As cia tes so	Dir ect ors	Oth rel ate d er rtie pa s	To tal
Gro No ent inv est nts in nie n-c urr me up com pa s Loa to c ies ns om pan De its and nte pos gu ara es	7,4 01, 800 ,00 0 558 ,61 8	-- --	-- --	-- 748 ,61 4	7,4 01, 800 ,00 0 1,3 07, 232
To tal nt a ts non -cu rre sse	7,4 02, 358 ,61 8	--	--	748 ,61 4	7,4 03, 107 ,23 2
Tra de and oth iva ble s (n ote 14 ) er r ece Tra de eiv abl ent rec es – c urr	41, 297 ,48 2	--	--	--	41, 297 ,48 2
Cu nt i stm ent s in Gr ani and rre nve oup co mp es oci ate ass s Loa to c ies ns om pan	164 ,47 5,7 33		--	--	164 ,47 5,7 33
To tal t as set cur ren s To tal ets ass	205 ,77 3,2 15 7,6 08, 131 ,83 3	-- --	-- --	-- 748 ,61 4	205 ,77 3,2 15 7,6 08, 880 ,44 7
No ent ble s to Gr ani n-c urr pa ya oup co mp es	4,3 64, 424 ,04 9	--	--	--	4,3 64, 424 ,04 9
To tal nt l iab ilitie non -cu rre s	4,3 64, 424 ,04 9	--	--	--	4,3 64, 424 ,04 9
Cu Gr nt p ble s to ani and rre aya oup co mp es oci ate ass s Tra de and oth ble s (n ote 21 ) er p aya	43, 289 ,27 3 --	--	--	--	43, 289 ,27 3
Su lier pp s Su lier Gro ies d a cia tes pp s, up com pan an sso	-- 12, 402 ,10 1	-- --	-- --	7,4 74, 787 --	7,4 74, 787 12, 402 ,10 1
To tal t lia bili ties cur ren	55, 691 ,37 4	--	--	7,4 74, 787	63, 166 ,16 1
To tal liab ilitie s	4,4 20, 115 ,42 3	--	--	7,4 74, 787	4,4 27, 590 ,21 0

GRIFOLS, S.A Related Party Balances for the year ended 31 December 2019 (Expressed in Euros)

(Free translation from the original in Spanish, In the event of discrepancy, the Spanish-language version prevails,)

	Eu ros
	Gr ou p ies co mp an	As cia tes so	Dir ect ors	Oth rel ate d er rtie pa s	To tal
No ent inv est nts in Gro nie n-c urr me up com pa s Loa to c ies ns om pan De its and nte pos gu ara es	7,2 15, 503 ,79 3 558 ,61 8	-- --	-- --	-- 831 ,99 6	7,2 15, 503 ,79 3 1,3 90, 614
To tal nt a ts non -cu rre sse	7,2 16, 062 ,41 1	--	--	831 ,99 6	7,2 16, 894 ,40 7
s (n ) Tra de and oth iva ble ote 14 er r ece Tra de eiv abl ent rec es – c urr	45, 736 ,62 8	--	--	--	45, 736 ,62 8
Cu Gr nt i stm ent s in ani and rre nve oup co mp es oci ate ass s Loa to c ies ns om pan	164 ,47 5,7 33		--	--	164 ,47 5,7 33
To tal t as set cur ren s To tal ets ass	210 ,21 2,3 61 7,4 26, 274 ,77 2	-- --	-- --	-- 831 ,99 6	210 ,21 2,3 61 7,4 27, 106 ,76 8
No ent ble s to Gr ani n-c urr pa ya oup co mp es	4,1 13, 720 ,82 3	--	--	--	4,1 13, 720 ,82 3
To tal nt l iab ilitie non -cu rre s	4,1 13, 720 ,82 3	--	--	--	4,1 13, 720 ,82 3
Cu nt p ble s to Gr ani and rre aya oup co mp es oci ate ass s Tra de and oth ble s (n ote 21 ) er p aya	35, 285 ,92 3 --	--	--	--	35, 285 ,92 3
Su lier pp s	--	--	--	4,6 99, 977	4,6 99, 977
Su lier Gro ies d a cia tes pp s, up com pan an sso	51, 028 ,98 4	--	--	--	51, 028 ,98 4
To tal t lia bili ties cur ren	86, 314 ,90 7	--	--	4,6 99, 977	91, 014 ,88 4
To tal liab ilitie s	4,2 00, 035 ,73 0	--	--	4,6 99, 977	4,2 04, 735 ,70 7

Appendix X 1 of 2

GRIFOLS, S.A.

Related Party Transactions for the year ended 31 December 2020 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

20 20	Eu ros
	Gr ou p ies co mp an	Ke t y m an ag em en el pe rso nn	Dir tor ec s	Ot he lat ed r re rtie pa s	To tal
Inc om e
t S Ne ale s
Lic cin inc en g om e	22, 430 341 ,	--	--	--	22, 430 341 ,
Oth rvic de red er se es ren	137 956 083 , ,	--	--	--	137 956 083 , ,
Fin inc an ce om e	230 509 859 , ,	--	--	--	230 509 859 , ,
Div ide nds	165 227 338 , ,	--	--	--	165 227 338 , ,
To tal inc om e	556 123 621 , ,	--	--	--	556 123 621 , ,
Ex pe nse s Ne t P ha urc se
Op ting le era ase ex pe nse s	3, 915 41 1 ,	--	--	5, 137 999 ,	9, 053 410 ,
Oth rvic eiv ed er se es rec	11, 907 690 ,	--	--	10, 344 000 ,	22, 25 1, 690
Re rat ion mu ne s	--	8, 196 000 ,	4, 966 000 ,	--	13, 162 000 ,
Fin cia l in str ts an um en
Fin ts an ce cos	165 761 961 , ,	--	--	--	165 761 961 , ,
To tal ex pe nse s	181 585 062 , ,	8, 196 000 ,	4, 966 000 ,	15, 48 1, 999	210 229 061 , ,
Inv est nts me
Co st o f a ts a uir ed sse cq B uild ing nd oth ins tal lati s a er on s f a Inc ts a uir ed om e o sse cq	354 858 ,	--	--	--	354 858 ,
B uild ing nd oth ins tal lati s a er on s	( ) 185 342 ,	--	--	--	( ) 185 342 ,
To tal inv est nts me	169 516 ,	--	--	--	169 516 ,

Appendix X 2 of 2

GRIFOLS, S.A.

Related Party Transactions for the year ended 31 December 2019 (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

2019

	Eu ros
	Gr ou p ies co mp an	Ke t y m an ag em en el pe rso nn	Dir ect ors	Ot he lat ed r re rtie pa s	To tal
Inc om e
Ne t S ale s
Lic cin inc en g om e	21, 404 970 ,	--	--	--	21, 404 970 ,
Oth vic de red er ser es ren	114 175 ,7 00 ,	--	--	--	114 175 ,7 00 ,
Fin inc an ce om e	72, 454 130 ,	--	--	--	72, 454 130 ,
Div ide nds	953 825 030 , ,	--	--	--	953 825 030 , ,
To tal inc om e	1, 161 859 830 , ,	--	--	--	1, 161 859 830 , ,
Ex pe nse s
Ne t P ha urc se
Op ting lea era se exp en ses	3,7 58, 500	--	--	104 329 7, ,	10, 862 829 ,
Oth vic eiv ed er ser es rec	12, 297 ,7 04	--	219 614 ,	5,5 85, 790	18, 103 108 ,
Re rat ion mu ne s	--	6, 828 337 ,	5,5 17, 139	--	12, 345 476 ,
Fin cia l in str ent an um s
Fin ts an ce cos	100 006 175 , ,	--	--	--	100 006 175 , ,
To tal exp en ses	116 062 379 , ,	6, 828 337 ,	5,7 36, 753	12, 690 119 ,	141 317 ,5 88 ,
Inv est nts me
Co st o f a ts a ired sse cqu B uild ing nd oth ins tal lati s a er on s	694 202 ,	--	--	--	694 202 ,
Inc f a ts a ired om e o sse cqu B uild ing nd oth ins tal lati s a er on s		--	--	--
To tal inv est nts me	694 202 ,	--	--	--	694 202 ,

31 December 2020 and 2019 Details of Revenues by Category of Activity and Geographical Market for the years ended (Expressed in Euros)

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

	Eur os
	Dom esti c		Res t of Eur an U nion ope		Unit ed S	tate s		Res t of the ld wor		Tota l
	202 0	201 9	202 0	201 9	202 0	201 9	202 0	201 9	202 0	201 9
e fro of se Rev m th nde ring rvice enu e re s	56,1 53,5 94	49,9 72,8 10	29,4 08,5 67	26,1 75,0 34	50,3 01,1 06	36,1 82,6 05	2,09 2,81 6	1,84 5,25 0	137, 956, 083	114, 175, 699
Lice ncin g inc ome	22,4 30,3 41	21,4 04,9 71	--	--	--	--	--	--	22,4 30,3 41	21,4 04,9 71
Divid end s	124, 997, 558	42,6 65,9 00	36,0 81,1 13	79,2 84,0 68	1,93 4,20 6	831, 875, 062	2,21 4,46 1	--	165, 227, 338	953, 825, 030
Fina inco nce me	21,4 02	1,04 3,20 3	230, 488, 457	71,3 46,4 00	--	--	--	64,5 27	230, 509, 859	72,4 54,1 30
Prof l of i it on disp tme nts i osa nves n gr oup ies com pan	--	807, 651, 582	--	--	--	--	--	--	--	807, 651, 582
	203 ,602 ,895	922 ,738 ,466	295 ,978 ,137	176 ,805 ,502	52,2 35,3 12	868 ,057 ,667	4,30 7,27 7	1,90 9,77 7	556 ,123 ,621	1,96 9,51 1,41 2

GRIFOLS, S.A. Directors Report

To the shareholders:

1. Business performance and position of the Company

Grifols, S.A. is a Spanish holding company specialised in the pharmaceutical-clinical sector. It is the Parent of the Grifols Group and its principal activities are as follows:

• Defining action plans and general procedures for the entire Group

• Planning future investments by entering new markets or through product diversification

• Providing support to the various functional areas in each Group company (products division,

technical division, marketing/sales division, scientific division, financial division and planning and control division)

• Leasing buildings it owns to Group companies.

• Rendering services to subsidiaries such as personnel recruitment and management,

communications and corporate image, IT services and maintenance.

The Company obtains its income from leasing its buildings and rendering services, and through dividends from its subsidiaries.

1. Forecast

The Company's profits could be affected by events related to the activities of its subsidiaries, such as a lack

of raw materials for product manufacturing, the arrival of competitor products on the market or regulatory changes in the markets in which it operates.

At the date of authorisation for issue of these annual accounts, the Company has taken the measures it considers appropriate to mitigate any possible effects arising from the aforementioned events.

1. Treasury stock

At 31 December 2020, the Company has treasury stock of Euros 43,734,492, as described in note 16 to the accompanying annual accounts. Transactions involving treasury stock in 2020 are described in note 16 to the accompanying annual accounts.

1. Research and development

The Company does not conduct any research and development activities.

1. Management of financial risks

The Company's financial risk management policy is detailed in note 11 to the accompanying annual accounts.

1. Deferred payments to suppliers

As indicated in note 20 to these annual accounts, and as the average payment period is greater than the maximum period established in late payment legislation, the Company is studying best practices to reduce the average number of days.

1. Non-financial information statement

The non-financial information statement is presented in the consolidated directors' report of the Grifols, S.A and Subsidiaries Group of which the Company forms part, and has been prepared in line with the requirements set out in Law 11/2018 of 28 December 2018 on non-financial information and diversity, approved on 13 December 2018 by the Spanish Congress of Representatives, amending the Spanish Code

of Commerce, the Revised Spanish Companies Act approved by Royal Legislative Decree 1/2010 of 2 July 2010 and Spanish Audit Law 22/2015 of 20 July 2015, as regards non-financial information and diversity (under Royal-Decree Law 18/2017 of 24 November 2017).

1. Annual Corporate Governance report

The annual corporate governance report of Grifols, S.A. forms part of this directors' report and is available at www.grifols.es. It is also published as Other Relevant Information on the Spanish National Securities Market Commission (CNMV) website

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

At their meeting held on 19 February 2021, pursuant to the requirements of article 253.2 pf the Revised Spanish Companies Act and article 37 of the Spanish Code of commerce, the Directors of Grifols, S.A. authorised for issue the annual accounts and directors' report for the period from 1 January 2020 to 31 December 2020. The annual accounts and Director´s report comprise the documents that precede this certification.

Victor Grifols Roura (signed)	Raimon Grifols Roura (signed)	Víctor Grifols Deu (signed)
Chairman – Board Member	Chief Executive Officer	Chief Executive Officer
Carina Szpilka Lázaro	Tomás Dagà Gelabert	Thomas Glanzmann
(signed) Board member	(signed) Board member	(signed) Vice-Chairman
Iñigo Sánchez-Asiaín Mardones	Enriqueta Felip Font	James Costos (signed)
(signed)	(signed)
Board member	Board member	Board member
Steven F. Mayer	Belen Villalonga Morenés	Marla E. Salmon
(signed)	(signed)	(signed)
Board member	Board member	Board member
Ramón Riera Roca	Nuria Martín Barnés
(signed)	(signed)
Board Member	Secretary to the Board