Balance Sheet 31 December 2022

(Expressed in Thousands of Euros)

GRIFOLS, S.A.
Balance Sheet
31 December 2022
(Expressed in Thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

Assets	Note	2022	2021
Intangible assets	Note 5	23,213	22,129
Computer software		23,213	21,629
Advances		-	500
Property, plant and equipment	Note 6	35,545	38,443
Land and buildings Technical installations, machinery, equipment, furniture and other items		11,239 18,207	11,327 20,666
Under construction and advances		6,099	6,450
Investment property	Note 7	80,458	72,474
Land		28,191	19,460
Buildings		45,519	41,092
Investments in adaptation and advances		6,748	11,922
Non-current investments in Group companies and associates Equity instruments	Note 12	12,469,437 5,324,682	10,960,716 3,983,162
Loans to companies	Note 14	7,144,755	6,977,554
Non-current investments	Note 14	29,199	3,620
Derivatives	Note 15	26,977	2,068
Other financial assets		2,222	1,552
Deferred tax assets	Note 22	9,150	10,477
Total non-current assets		12,647,002	11,107,859
Inventories		11,439	10,012
Raw materials and other supplies		11,439	10,012
Trade and other receivables	Note 14	72,869	91,817
Trade receivables – current		833	2,931
Trade receivables from Group companies and associates – current Other receivables	Note 24	50,198 1,068	71,645 227
Personnel		171	280
Current tax assets	Note 22	2,486	358
Public entities, other	Note 22	18,113	16,376
Current investments in Group companies and associates	Note 14	123,033	261,483
Loans to group companies and associates		123,033	261,483
Current investments	Note 14	11,569	3,244
Derivatives Other financial assets	Note 15	11,536 33	3,238 6
Prepayments for current assets	Note 16	13,511	15,688
Cash and cash equivalents		13,678	7,802
Cash		13,678	7,802
Total current assets		246,099	390,046
		12,893,101	11,497,905

Balance Sheet 31 December 2022

(Expressed in Thousands of Euros)

	GRIFOLS, S.A.
	Balance Sheet 31 December 2022
	(Expressed in Thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Equity and Liabilities	Note	2022	2021
Capital and reserves	Note 17	2,285,248	2,549,924
Capital Registered capital		119,604	119,604
Share premium Reserves		910,728	910,728
Legal and statutory reserves		23,921	23,921
Other reserves		1,652,208	1,790,749
(Treasury stock and equity holdings) Profit for the year		(162,220) (266,296)	(164,188) (140,728)
Other equity instruments		7,303	9,838
Valuation adjustments		57,798	53,018
Valuation adjustments available for sale		53,018	53,018
Cash flow hedges Grants, donations and bequests received	Note 15	4,780 79	- 82
Total equity		2,343,125	2,603,024

Non-current payables Promissory notes	Note 20	3,901,732 2,556,641	3,918,331 2,553,548
Loans and borrowings		1,340,473	1,363,205
Finance lease payables	Note 8	52	430
Derivatives	Note 15	3,990	-
Other financial liabilities Group companies and associates, non-current	Note 20	576 6,419,171	1,148 4,605,868
Deferred tax liabilities	Note 22	2,580	1,031
Total non-current liabilities		10,323,483	8,525,230
Current provisions		7,000	-
Other provisions		7,000	-
Current payables	Note 20	74,786	154,841
Promissory notes		12,554	110,638
Loans and borrowings Finance lease payables	Note 8	60,899 391	42,080 710
Other financial liabilities		942	1,413
Group companies and associates, current	Note 20	61,720	42,584
Trade and other payables	Note 20	82,987	172,226
Current payables to suppliers Suppliers, Group companies and associates, current	Note 24	58,812 9,235	71,538 15,624
Personnel (salaries payable)		11,541	12,547
Current tax liabilities	Note 22	-	68,986
Public entities, other	Note 22	3,399	3,531
Total current liabilities		226,493	369,651
Total equity and liabilities		12,893,101	11,497,905

Statement of Profit and Loss for the year ended

(Expressed in Thousands of Euros)

	GRIFOLS, S.A. Statement of Profit and Loss for the year ended
	31 December 2022
	(Expressed in Thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

	Note	2022	2021
Revenues	Note 25	488,639	424,736
Services rendered		199,311	178,631
Finance income	Note 13 and 24	282,305	240,347
Dividends Self-constructed assets	Note 24 and 25	7,023 5,478	5,758 3,354
Supplies		(7,376)	(10,054)
Raw materials and consumables used	Note 25	(7,074)	(9,753)
Impairment of merchandise, raw materials and other supplies		(302)	(301)
Other operating income		1,956	7,149
Non-trading and other operating income Operating grants taken to income		1,881 75	7,126 23
Personnel expenses		(81,088)	(76,265)
Salaries and wages		(65,742)	(62,846)
Employee benefits expense	Note 25	(15,194)	(13,387)
Provisions	Note 25	(152)	(32)
Other operating expenses		(214,386)	(181,853)
External services Taxes		(211,831) (381)	(179,490) (283)
Other operating expenses		(2,174)	(2,080)
Amortisation and depreciation	Notes 5, 6 and 7	(14,341)	(15,028)
Non-financial and other capital grants		4	12
Impairment and losses on disposal of fixed assets		(119,948)	(40,188)
Impairment and losses Losses on disposals	Note 12	(119,946) (2)	(40,187) (1)
Results from operating activities		58,938	111,863

Finance income From marketable securities and other financial instruments		9,273	371
Other third parties	Note 13	8,905	15
Capitalised borrowing costs	Note 6	368	356
Finance costs	Note 19	(401,985)	(291,437)
Group companies and associates	Note 24	(293,853)	(182,964)
Other third parties Fair value adjustments in financial instruments		(108,132) 16,689	(108,473) 4,483
Fair value adjustments recognized in profit and loss	Note 15	16,689	5,306
Transfers of fair value adjustments recognized in equity		-	(823)
Exchange differences	Notes 14 and 20	9,219	(1,051)
Impairment and losses on disposal of financial instruments		-	555
Impairment and losses		-	555
Net finance cost		(366,804)	(287,079)
Profit before income tax		(307,866)	(175,216)
Income tax	Note 22	41,570	34,488
Profit for the year		(266,296)	(140,728)

Statements of Changes in Equity for the years ended 31 December 2022 and 2021

A) Statement of Comprehensive Income for the year ended 31 December 2022

	GRIFOLS, S.A. Statements of Changes in Equity
	for the years ended 31 December 2022 and 2021
A) Statement of Comprehensive Income for the year ended	31 December 2022
	(Expressed in Thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

	Note	2022	2021
Profit for the year		(266,296)	(140,728)
Income and expense recognised directly in equity
Cash flow hedges	Note 15	22,176	-
Tax effect		(5,544)	-
From valuation of financial instruments Financial assets at fair value through equity		-	823

Total income and expense recognised directly in equity		16,632	823
Amounts transferred to the income statement
Cash flow hedges Tax effect	Note 15	(15,802) 3,950	- -
Grants, donations and bequests		(4)	(12)
Tax effect		1	3
Total amounts transferred to the income statement		(11,855)	(9)
Total recognised income and expense		(261,519)	(139,914)

Statements of Changes in Equity for the years ended 31 December 2022 and 2021

B) Statement of Changes in Equity for the year ended 31 December 2022

GRIFOLS, S.A. Statements of Changes in Equity for the years ended 31 December 2022 and 2021 B) Statement of Changes in Equity for the year ended 31 December 2022 (Expressed in Thousands of Euros) (Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails) Valuation Grants, donations Registered Other equity adjustments and bequests capital Share premium Reserves Treasury stock Profit for the year instruments available for sale received Total 119,604 910,728 1,814,670 (164,188) (140,728) 9,838 53,018 82 - - - - (266,296) - 4,780 (3) - - - 1,968 - - - - Net movement in treasury stock - - 2,187 - - (2,535) - - Restricted share plan (note 17) - - (140,728) - 140,728 - - - Reserves



Balance at 31 December 2021 Recognised income and expense Transactions with shareholders or owners Profit (losses) distribution







					2,603,024

					(261,519)

					1,968
					(348)

Balance at 31 December 2022 119,604 910,728 1,676,129 (162,220) (266,296) 7,303 57,798 79 2,343,125					-

Statements of Changes in Equity for the years ended 31 December 2022 and 2021

B) Statement of Changes in Equity for the year ended 31 December 2021

				GRIFOLS, S.A. Statements of Changes in Equity for the years ended 31 December 2022 and 2021 B) Statement of Changes in Equity for the year ended 31 December 2021 (Expressed in Thousands of Euros)




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


	Registered					Other equity	Valuation adjustments	Grants, donations and bequests
	capital	Share premium	Reserves	Treasury stock Profit for the year		instruments	available for sale	received	Total
Balance at 31 December 2020	119,604	910,728	1,998,788	(43,734)	64,748	13,880	52,195	91	3,116,300
Recognised income and expense	-	-	-	-	(140,728)	-	823	(9)	(139,914)

Transactions with shareholders or

Net movement in treasury stock Dividends (note 3)	- -	- -	- (247,520)	(120,454) -	- -	- -	- -	- -	(120,454) (247,520)
Restricted share plan (note 17)	-	-	1,268	-	-	(4,042)	-	-	(2,774)
owners Profit (losses) distribution
Reserves	-	-	62,134	-	(62,134)	-	-	-	-
Dividends	-	-	-	-	(2,614)	-	-	-	(2,614)

Statements of Cash Flows for the years ended 31 December 2022

	GRIFOLS, S.A. Statements of Cash Flows for the years ended 31 December 2022
	(Expressed in Thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
		2022	2021
Cash flows from operating activities Profit for the year before tax	Note	(307,866)	(175,216)
Adjustments for
Dividend income Impairment	Note 25 Note 12	(7,023) 120,248	(5,758) 40,187
Amortisation and depreciation	Notes 5,6 and 7	14,341	15,028
Finance income Finance costs	Note 13 and 6 Note 19	(291,578) 401,985	(240,718) 291,437
Exchange differences		(9,219)	-
Change in fair value of financial instruments Other income and expenses		(16,689) (4,875)	(4,483) 717
Changes in operating assets and liabilities
Inventories Trade and other receivables		(1,729) 17,392	(1,879) (28,505)
Other current assets		(1,626)	(5,412)
Trade and other payables Other cash flows from operating activities		(13,400)	23,065
Interest paid		(360,087)	(277,757)
Dividends received Interest received	Note 25	7,023 280,080	5,758 264,045
Income tax paid received		67,289	37,958
Cash flows from operating activities		(105,734)	(61,533)
Cash flows from investing activities
Payments for investments Group companies and associates	Note 12	(1,676,469)	(48,748)
Intangible assets	Note 5	(3,799)	(7,854)
Property, plant and equipment Other financial assets	Note 6 and 7	(11,367) (197)	(10,622) -
Proceeds from sale of investments
Group companies and associates Property, plant and equipment		97,535 -	372,989 1
Other financial assets		8,686	1,676
Cash flows from investing activities		(1,585,611)	307,442
Cash flows from financing activities Proceeds from and payments for equity instruments
Acquisition of own equity instruments Proceeds from and payments for financial liability instruments Proceeds	Note 17	(3,459)	(125,703)
Loans and borrowings Group companies and associates Disposal		13,866 2,004,676	- 241,445
Promissory notes Loans and borrowings Group companies and associates		(97,535) (30,081) (197,320)	- (105,233) -
Other payables Dividends and interest on other equity instruments paid		(1,794)	(1,004)
Dividends	Note 3	-	(250,134)
Cash flows used in financing activities		1,688,353	(240,629)
Exchange rate deviation		8,868	-
Net increase/decrease in cash and cash equivalents		5,876	5,280
Cash and cash equivalents at beginning of year		7,802	2,522
Cash and cash equivalents at year end		13,678	7,802

Notes to the Annual Accounts

(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, associated and multi-group companies listed in Note 12 and the Appendix II. 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.

On 23 February 2023 the Company's board of directors authorised for issue the consolidated annual accounts of Grifols, S.A. and subsidiaries for 2022 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 208,279 thousand, total assets Euros 21,533,977 thousand and consolidated equity of Euros 8,457,544 thousand (Euros 188,726 thousand, Euros 19,233,835 thousand and Euros 7,317,098 thousand, respectively, in 2021).

(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 2022 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 2022 and results of operations, changes in equity, and cash flows for the year then ended.

The directors consider that the annual accounts for 2022, authorised for issue on 23 February 2023, 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 2022 include comparative figures for 2021, which formed part of the annual accounts approved by the shareholders at the annual general meeting held on 10 June 2022.

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

(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

(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 2022, 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 2021, approved by the shareholders at their annual general meeting held on 10 June 2022, is as follows:

	Thousand Euros
Basis of allocation
Losses for the year	(140,728)

Allocation
Voluntary reserve	(140,728)

At the general meeting held on 21 May 2021, 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 thousand. Additionally, it was approved a dividend of Euros 0.36 for every Class A and Class B shares from voluntary retained earnings for a total amount of Euros 247,520 thousand.

The proposed distribution of losses for the year ended 31 December 2022 to be submitted to the shareholders for approval at their annual general meeting is as follows:

	Thousand Euros
Basis of allocation
Losses for the year	(266,296)

Allocation
Voluntary reserve	(266,296)

Notes to the Annual Accounts

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

At 31 December 2022 and 2021 non-distributable reserves are as follows:

		Thousand Euros
	2022	2021
Non-distributable reserves
Legal reserve	23,921	23,921
Other	3	3
	23,924	23,924

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

(4) Significant Accounting Policies

(a) 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 and loss.

(b) 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.

Notes to the Annual Accounts

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

Intangible assets are measured at cost or cost of production. Capitalised production costs are recognised under "selfconstructed 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

(ii) Subsequent costs

(iii) Useful life and amortisation rates

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.

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.

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:
	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 (f) Impairment of non-financial assets subject to amortisation or depreciation.

Notes to the Annual Accounts

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

(d) 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.

(iii) Depreciation

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.

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.

Notes to the Annual Accounts

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

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 (f) Impairment of non-financial assets subject to amortisation or depreciation.

(e) Investment property

The Company classifies property leased to its subsidiaries under this caption.

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

Investment property is depreciated applying the following policies:

	Depreciation method	Rates %

Buildings and other installations	Straight-line	1-10

(f) 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.

(g) 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.

Notes to the Annual Accounts

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

(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 (d) and (e) (Property, plant and equipment or Investment Property).

Operating leases

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

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

(h) Financial instruments

(i) Classification of financial instruments

Financial instruments are classified at the time of their initial recognition as a financial asset, a financial liability or an equity instrument, in accordance with the economic substance of the contractual agreement and with the definitions of financial assets, financial liabilities or equity instruments.

For valuation purposes, the Company classifies financial instruments in the following categories: financial assets and liabilities valued at amortised cost; financial assets and liabilities at fair value through profit or loss, by considering separately those initially designated from those held for trading and those compulsorily valued at fair value through profit or loss; financial assets measured at fair value through equity, by considering separately the equity instruments designated as such from the rest of the financial assets; and financial assets valued at cost.

The Company classifies a financial asset at amortised cost if it is held in the framework of a business model whose objective is to hold financial assets to obtain contractual cash flows and the contractual terms of the financial asset give rise, on specified dates, to cash flows which are only principal and interest payments on the outstanding principal amount (OPIP).

The Company classifies as a financial asset at fair value through equity those financial assets whose contractual conditions, on specified dates, result in cash flows that are solely receipts of principal and interests on the outstanding principal amount, and they are not held for trading nor classified in the previous category. In this category are also included the investments in equity instruments designated irrevocably by the Company at the time of its initial recognition, as far as they are not held for trading and should not be valued at cost.

The Company classifies as a financial asset at fair value through profit or loss those financial assets held for trading and those financial assets that have not been classified in any of the previous categories. In this category are also included the financial assets that the Company optionally designates at the time of the initial recognition, which otherwise would have been included in another category, as such designation eliminates or significantly reduces a valuation inconsistency or accounting asymmetry.

The Company classifies a financial asset at cost when it is an (i) investment in the equity of group, multigroup and associates (ii) participating loans with contingent interests, either because a fixed or conditional variable interest rate is conditioned to the fulfilment of a milestone in the borrowing company, or because they are calculated exclusively with respect to the evolution of the activity of the aforementioned company.

Notes to the Annual Accounts

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

The Company classifies its financial liabilities at amortised cost.

(ii) Valuation

At the time of initial recognition, the Company values a financial asset at its fair value plus, in the case of a financial asset that is not at fair value through profit or loss, the costs of the transaction that are directly attributable to the acquisition. The transaction costs of financial assets at fair value through profit or loss are taken to results. In order to determine the fair value of financial assets or liabilities, the Company uses market data as much as possible. Based on the factors used for the measurement, the fair values are hierarchized based on the following factors:

Level 1: estimates based on quoted prices (unadjusted) within current markets for assets or liabilities identical to those that the company may have access at the valuation date;

Level 2: estimates based on quoted prices in active markets for similar instruments or other valuation methodologies in which all significant variables are based on directly or indirectly observable market data; or

Level 3: estimates based on any significant variable that is not based on observable market data.

In the event that the factors used to determine the fair value of an asset or liability are included in different levels of hierarchy, the fair value will be determined in its entirety based on the significant component located at the lowest level of hierarchy.

(iii) 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.

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

Financial assets and financial liabilities at fair value through profit or loss 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 recognized at fair value through profit or loss. Changes in the fair value include the component of interest and dividends. The fair value is not reduced by the transaction costs that may be incurred by their eventual sale or disposal by other means.

(v) Financial assets and liabilities at amortised cost

Financial assets and financial liabilities at amortised cost are initially recognized at their fair value, including the transaction costs incurred, and are subsequently measured at amortised cost, using the effective interest method.

(vi) 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.

Notes to the Annual Accounts

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

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 at fair value through profit or loss, unless it is designated at fair value through equity and it is valued as such from the date of reclassification, recognizing any difference in the profit or loss or in equity, respectively.

In non-monetary business contributions to other group companies, including investments in group companies, the equity investments received are valued at the date the operation is carried out, for the amount representing the percentage of participation equivalent to the book value of the net assets of the investment contributed in the consolidated financial statements of the largest group whose parent company is Spanish according to the Standards for the Formulation of Consolidated Annual Accounts, plus transaction costs. Any difference between the book value of the investments received and the book value of the equity elements delivered (or the investment contributed), is recognized in reserves.

The Company recognizes the amount contributed in a capital increase, including the preferential subscription rights acquired, as a higher value of the equity instruments.

However, when the Company does not contribute proportionally to its stake in the issuer, it recognizes the difference as a donation expense.

If the Company receives an asset or group of assets other than cash, the swap criteria previously indicated for non-monetary contributions are applied.

(vii) Reclassifications of financial instruments

The Company reclassifies a financial asset when the business model for its management is modified or when it meets or no longer meets the aforementioned classification criteria. The Company does not reclassify financial liabilities.

(viii) Derecognition of financial assets

The Company applies the criteria for the derecognition of financial assets to a part of a financial asset or to a part of a group of similar financial assets or to a financial asset or a group of similar financial assets.

Financial assets are derecognized when the rights to receive cash flows related to them have expired or have been transferred and the Company has substantially transferred the risks and rewards derived from their ownership.

(ix) 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.

Impairment of financial assets valued at amortised cost

The loss due to an impairment of financial assets valued at amortised cost is the difference between the book value of the financial asset and the present value of the estimated future cash flows. However, the Company uses the financial assets market value, as long as it is reliable enough to be considered representative of the value to be recovered.

Notes to the Annual Accounts

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

The impairment loss is recognized with charge to profit or loss and it is reversible in subsequent years, if the decrease can be objectively related to an event subsequent to its recognition. However, the reversal of the loss is limited to the amortised cost that the assets had if the loss due to the impairment in value had not been recorded.

The Company directly reduces the carrying amount of a financial asset when it does not have reasonable expectations of full or partial recovery.

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.

(x) 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.

However, the Company may designate the financial guarantee to be measured at fair value through profit or loss.

(xi) 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.

Notes to the Annual Accounts

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

(i) Hedge accounting

Derivative financial instruments are initially recognized following the criteria set forth above for financial assets and liabilities. Derivative financial instruments that do not meet the hedge accounting criteria are classified and valued as financial assets or liabilities at fair value through profit or loss.

(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.

(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.

20

GRIFOLS, S.A.

Notes to the Annual Accounts

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

(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

(i) 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.

(ii) Interests and dividends

The Company recognizes interests and dividends on financial assets accrued after the acquisition date as income in the profit and loss.

The Company recognizes interests on financial assets valued at amortised cost using the effective interest method and dividends when the Company is entitled to receive them.

In the initial valuation of financial assets, the Company records separately, based on their maturity, the amount of explicit interest accrued and not due at that time, as well as the amount of dividends agreed by the competent authority at the time of the acquisition. As a result, these amounts are not recognized as income in the profit or loss.

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 the acquisition have been distributed, the carrying amount of the investment is reduced. This criterion is applied regardless of the valuation criterion used for the equity instruments, so for equity instruments valued at fair value, the value of the investment is also reduced and an increase in subsequent value in the profit or loss account or in equity is recognized, based on the instruments classification.

The Company recognizes the dividends received by the delivery of an equity element or group of equity elements other than cash, in accordance with the previously indicated criteria. However, if the dividend is received as a business of a group company, the criteria indicated in BOICAC 85 should be applied.

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

Notes to the Annual Accounts

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

(q) Income tax

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

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.

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 Grifols Escrow Issuer, S.A.

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

(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

(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 (d) Property, plant and equipment.

(u) Transactions between Group companies

(5) Intangible Assets

(d) Property, plant and equipment.	activities, are recognised as assets applying the measurement, presentation and disclosure criteria described in section
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 financial statements 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.

Details of intangible assets and movement are as follows:
			Thousand Euros
2022	Other items	Computer software	Prepayments	Total
Cost at 1 January 2022	2,977	79,015	500	82,492
Additions	-	7,897	-	7,897
Disposals	(2,977)	-	(500)	(3,477)
Transfers	-	345	-	345
Cost at 31 December 2022	-	87,257	-	87,257
Accumulated amortisation at 1 January 2022	-	(57,386)	-	(57,386)
Amortisations	-	(6,658)	-	(6,658)
	-	(64,044)	-	(64,044)
Accumulated amortisation at 31 December 2022

Accumulated impairment at 1 January 2022 Disposals	(2,977) 2,977	- -	- -	(2,977) 2,977
Accumulated impairment at 31 December 2022	-	-	-	-

Notes to the Annual Accounts

	24 GRIFOLS, S.A. Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)



			Thousand Euros
2021	Other items	Computer software	Prepayments	Total
Cost at 1 January 2021	2,977	71,084	500	74,561
Additions	-	7,854	-	7,854
Transfers	-	77	-	77

Cost at 31 December 2021	2,977	79,015	500	82,492
Accumulated amortisation at 1 January 2021	-	(51,353)	-	(51,353)
Amortisations	-	(6,033)	-	(6,033)
Accumulated amortisation at 31 December 2021	-	(57,386)	-	(57,386)
Accumulated impairment at 1 January 2021	(2,977)	-	-	(2,977)
Accumulated impairment at 31 December 2021	(2,977)	-	-	(2,977)

(a) Fully amortised assets

Thousand Euros
2022	2021

53,756	50,593

Fully amortised computer software in use at 31 December 2022 and 2021 mainly reflects computer licences.

(6) Property, Plant and Equipment

Details of property, plant and equipment and movement are provided in Appendix I.

(a) Capitalised borrowing costs

During 2022 the Company has capitalised borrowing costs in investments in progress amounting to Euros 368 thousand (Euros 356 thousand in 2021) (see Note 4 (c)).

Notes to the Annual Accounts

(b) Fully depreciated assets

25
GRIFOLS, S.A.
Notes to the Annual Accounts


(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails) Fully depreciated assets Details of the cost of fully depreciated property, plant and equipment in use at 31 December are as follows:
	Thousand Euros 2022	2021

Technical installations and machinery Other installations, equipment and furniture	6,139 12,556	6,127 12,207
Other property, plant and equipment	19,602	15,317

(c) Insurance

(7) Investment Property

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.

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

		Thousand Euros
2022	Land	Buildings and other installations	Investments in adaption and advances	Total

Cost at 1 January 2022	19,460 3,776	89,562	11,922	120,944
		370	4,082	8,228
Additions
Transfers	4,955	6,694	(9,256)	2,393
Cost at 31 December 2022	28,191	96,626	6,748	131,565
Accumulated amortisation at 1 January 2022	-	(48,470)	-	(48,470)
Amortisations	-	(2,637)	-	(2,637)
Accumulated amortisation at 31 December 2022	-	(51,107)	-	(51,107)
Carrying amount at 31 december 2022	28,191	45,519	6,748	80,458

26

GRIFOLS, S.A.

Notes to the Annual Accounts

	GRIFOLS, S.A. Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

		Thousand Euros
2021	Land	Buildings and other installations	Investments in adaption and advances	Total
Cost at 1 January 2021	19,460	87,699	7,395	114,554
Additions	-	535	6,237	6,772
Disposals	-	(20)	-	(20)
Transfers	-	1,348	(1,710)	(362)
Cost at 31 December 2021	19,460	89,562	11,922	120,944
Accumulated amortisation at 1 January 2021	-	(45,499)		(45,499)
Amortisations	-	(2,991)	-	(2,991)
Disposals	-	20	-	20
Accumulated amortisation at 31 December 2021	-	(48,470)	-	(48,470)
Carrying amount at 31 december 2021	19,460	41,092	11,922	72,474


At 31 December 2022 and 2021 additions comprise the investments incurred to expand the Company's facilities and the acquisition of a plot of land in Lliçà de Vall.
Fully depreciated assets
The cost of fully depreciated investment property in use at 31 December is as follows:
			Thousand Euros
		2022		2021
Buildings			1,032	1,032
Other installations			33,023	30,574

			34,055	31,606

(a) General

(b) Fully depreciated assets

At 31 December 2022 and 2021 additions comprise the investments incurred to expand the Company's facilities and the acquisition of a plot of land in Lliçà de Vall.
Fully depreciated assets
The cost of fully depreciated investment property in use at 31 December is as follows:
		Thousand Euros
	2022		2021
Buildings		1,032	1,032
Other installations		33,023	30,574
		34,055	31,606
Income and expenses from investment property
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 24.

(c) Income and expenses from investment property

(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.

Notes to the Annual Accounts

(8) Finance Leases - Lessee

	27
	GRIFOLS, S.A.
	Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Finance Leases - Lessee
The Company has leased the following types of property, plant and equipment and investment property under finance leases:
		Thousand Euros

	Land	Other property, plant and equipment	Total
Initially recognised at:
Fair value	-	2,660	2,660
Accumulated depreciation	-	(2,572)	(2,572)
Carrying amount at 31 December 2022	-	88	88
Initially recognised at:
Fair value	381	3,212	3,593
Accumulated depreciation	(26)	(2,746)	(2,772)
Carrying amount at 31 December 2021	355	466	821

	Thousand Euros
	2022	2021
Future minimum payments	450	1,160
Unaccrued finance costs	(7)	(20)
Present value	443	1,140

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

	Thousand Euros
	2022		2021
	Minimum payments	Present value	Minimum payments	Present value
Less than one year	396	391	725	710
One to five years	54	52	435	430
	450	443	1,160	1,140
Less current portion	(396)	(391)	(725)	(710)
Total non-current	54	52	435	430

Notes to the Annual Accounts

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

(9) Operating Leases - Lessee

At 31 December 2022 and 2021, 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+SC4+SC5)

The contracts period is until 1st March 2040 and it is of compulsory compliance (until 9th February 2040, for SC5), with five-year tacit renewals. They 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 2026 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

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

		Thous and Euros
	2022	2021
Leas e payments (recognised as an expens e)	11,164	9,763

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

	Thousand Euros
	2022	2021
Less than one year	11,548	9,867
One to five years	35,212	32,646
Over five years	76,831	63,951
	123,591	106,464

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 24, 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 7,738 thousand at 31 December 2022 (Euros 6,481 thousand in 2021).

Notes to the Annual Accounts

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

(11) Risk Management Policy

(a) Financial 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 potentially 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.

Market risk

Market risk is the risk that changes in market prices, for example, exchange rates, interest rates or the prices of equity instruments, affect the Company's subsidiaries revenues or the value of the financial instruments that the Company holds. The objective of managing market risk is to manage and control the Company and its subsidiaries exposure to this risk within reasonable parameters at the same time as optimizing returns.

(i) Market risk

The Company is not exposed to market risks associated with non-financial assets. Even though, the Group is exposed to the price risk affecting raw materials, that is mitigated by the vertical integration of the hemoderivatives business in a highly-concentrated industry.

(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 20.

As mentioned in Note 15, the debt in US dollars is covered by the cross-currency swaps contracted to cover the exposure to the associated exchange rate risk.

At 31 December 2022 had the US Dollar weakened by 10% against the Euro, with the other variables remaining constant, post-tax profit would have been Euros 413 thousand higher, mainly as a result of converting payables to Group companies (Euros 1,406 thousand higher at 31 December 2021).

(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.

Notes to the Annual Accounts

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

Regarding the Company's subsidiaries, credit risk is the risk in the event that a customer or counterparty to a financial instrument fails to discharge a contractual obligation, and mainly results from trade receivables and investments in financial assets. At 31 December 2022 the impairment of those assets has not been significant.

(iv) Liquidity risk

Liquidity risk is the risk to not meet the financial obligations as they fall due. Management approach to managing liquidity is to ensure where possible, that the Company always has sufficient liquidity to settle its obligations at the maturity date, both in normal conditions and in times of tension, to avoid incurring unacceptable losses or tarnishing the Group's reputation.

Management manages liquidity risk on a prudent basis, based on availability of cash and sufficient committed unused long-term credit facilities, enabling the Group to implement its business plans and carry out operations using stable and secure sources of financing.

As explained in Note 12, in 2021 the Group completed the issuance of two bonds for an amount of Euros 1,400 million and US Dollars 705 million.

The main contractual obligations existing at the end of the year mainly comprise financial debt obligations with repayments of principal and interests, in the long term mostly (see Note 20).

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

	Details of financial liabilities by contractual maturity date are provided in Notes 14 and 20 (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 2022, had interest rates been 100 basis points higher/lower, with the other variables remaining constant, post-tax profit would have been Euros 20,491 thousand lower/higher, mainly because of higher borrowing costs on variable interest debt (Euros 10,119 thousand at 31 December 2021).
	Details of investments in equity instruments of Group companies and Associates are as follows:
		Thousand Euros
		2022	2021
		Non-current	Non-current
	Group companies and associates
	Equity investments	5,504,016	4,042,550
	Impairment	(179,334)	(59,388)
		5,324,682	3,983,162
	During 2022 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 17). In 2022 the bonuses accrued in the RSU plan during the period were recognised

During 2022 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 17). In 2022 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 3,002 thousand.

Notes to the Annual Accounts

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

A monetary contribution of Euros 47 million was approved at the sole shareholder meeting of Grifols Escrow Issuer, S.A. This contribution was made by Grifols, S.A., the sole shareholder of the company.
A monetary contribution of Euros 15 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.
A monetary contribution of Euros 4 million was approved at the general shareholders' meeting of Aigües Minerals de Vilajuïga, 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.
A monetary contribution of Euros 1 million was approved at the general shareholders' meeting of Grifols Viajes, 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.
On 30 March 2022, an additional capital increase of US Dollars 45.000 thousand was made, of which Grifols, S.A. contributed in US Dollars 22,050 thousand (Euros 19,818 thousand). At 31 December 2022 the share capital amounts US Dollars 120,000 thousand.

Both shareholders committed to contribute in future capital increases based on their ownership, until the subsidiary has a share capital of US Dollars 300,000 thousand. These increases will be done as far as the subsidiary requires it and with the approval of the shareholders.

On 7 June 2022 and as part of the Group's reorganization, Grifols S.A. acquires the 100% of the shares of Chiquito Acquisition Corporation to Grifols Worldwide Operations Ltd. for an amount of US Dollars 136,744 thousand (Euros 128,451 thousand). At the same date, Grifols S.A. performed a contribution in kind of these shares to Grifols Shared Services North America Inc for the same amount.
On 25 April 2022, Grifols, S.A. concluded the acquisition of Biotest AG with the purchase of a direct and indirect participation of 70.18% of its share capital. Biotest AG is the parent company of Biotest Group, which is composed of 17 companies. The operation was structured as follows:
On 22 April 2022, Grifols, S.A. completed the voluntary takeover bid to the minority shareholders of Biotest AG, which ended with the acquisition of 24,71% of Biotest AG capital, through the acquisition of 1,435,657 ordinary shares (43 euros per share) and 8,340,577 preferred shares (37 euros per share) for a total amount of Euros 370,335 thousand.
On 25 April 2022, Grifols S.A. acquired 100% of the shares of Grifols Biotest Holdings GmbH (formerly Tiancheng (Germany) Pharmaceutical Holdings AG) for Euros 872,514 thousand. Additionally, it acquired a subordinated loan of Euros 218,004 thousand (see Note 14). This company holds a direct participation of 45.47% of the share capital of Biotest AG.
In 2022, it has been registered an impairment of the investment in Grifols Brasil Ltda amounting Euros 9,229 thousand, Laboratorios Grifols, S.A. amounting Euros 55,325 thousand, Grifols Viajes, S.A. amounting Euros 923 thousand, Grifols Argentina, S.A. amounting Euros 856 thousand, Aigües Minerals de Vilajuïga, S.A. amounting Euros 1,313 thousand, Grifols Egypt for Plasma Derivatives (S.A.E.) amounting Euros 6,010 thousand, Grifols Escrow Issuer, S.A. amounting Euros 44,391 thousand, Grifols Middle East & Africa LLC. amounting Euros 661 thousand and Progenika Biopharma, S.A. amounting Euros 1,238 thousand.

During 2021 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 17). In 2021 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 2,367 thousand.
Grifols, S.A. has taken a total of 1 stake of Grifols Viajes, S.A., Grifols, S.A. makes a capital contribution and disburses a monetary contribution of Euros 1 million.

Notes to the Annual Accounts

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

A monetary contribution of Euros 15 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.
The investment in Grifols Argentina S.A. has been increased by Euros 4,449 thousand, as a result of a debt relief of financial liabilities that the subsidiary held with Grifols, S.A.
The investment in Grifols Brasil Ltda. has been increased by Euros 20,439 thousand, as a result of a debt relief of financial liabilities that the subsidiary held with Grifols, S.A.
On 20 April 2021, Grifols, S.A. and the National Service Projects Organization made a capital contribution for the constitution of Grifols Egypt for Plasma Derivatives S.A.E. which amounted to US Dollars 30,000 thousand. Grifols, S.A. contribution was US Dollars 14,700 thousand (Euros 12,154 thousand), obtaining 49% stake of the total share capital. On 16 July 2021, an additional capital increase of US Dollars 45.000 thousand was made, of which Grifols, S.A. contributed in US Dollars 22,050 thousand (Euros 18,300 thousand).

On 24 August 2021, the subsidiary Grifols Switzerland AG was liquidated. Consequently, Grifols S.A. disposed the investment and the related provision, which amounted to Euros 4,015 thousand and Euros 3,846 thousand, respectively.
On 26 August 2021, Grifols, S.A. acquired the company Grifols Escrow Issuer, S.A. (formerly Tenser Trade, S.A.) with a share capital amounting to Euros 60 thousand in order to make the acquisition of the entire share capital of Tiancheng (Germany) Pharmaceutical Holdings AG worth Euros 1,100 million, which holds 89.88% of the ordinary shares of Biotest AG and 1.08% of the preferred shares. In addition, it will finance the voluntary tender offer for the remaining ordinary and preferred shares of Biotest AG. On the date of approval of these annual accounts, the transaction is subject to regulatory approvals and conditions.

On 5 October 2021, the subsidiary closed the issuance of a senior unsecured corporate bond (Senior Unsecured Notes) in two tranches of Euros 1,400 million and US Dollars 705 million with maturity in 2028. The bonds are guaranteed by Grifols, S.A. and other group companies.

In 2021, it has been registered an impairment of the investment in Grifols Brasil Ltda amounting Euros 19,201 thousand, Laboratorios Grifols, S.A. amounting Euros 23,185 thousand, and Grifols Viajes, S.A. amounting Euros 325 thousand, and a reversal of impairment in Grifols Nordic AB amounting 2,470 thousand.
(a) Investments in Group companies

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

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.

Notes to the Annual Accounts

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

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 (49% 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.

(ii) Impairment testing

At the end of the year, the Company assesses whether there are signs of impairment in each of the investments in group companies and associates.

For investments in group companies and associates with signs of impairment, an estimate of the recoverable value is made, based on the present value of 5-year future cash flows approved by Management that are estimated to be received from each investment in its functional currency, discounted at a discount rate that includes the inherent risk, considering the net financial position and converting the euros at the closing exchange rate.

When estimating the recoverable value, Management considered the gross margin based on the past performance and the current situation, the ongoing investments, and the national market performance expectations.

Cash flows estimated as of the year in which stable growth in the financial investments has been reached are extrapolated using the estimated growth rates indicated below. Perpetual growth rates are consistent with the industry reports forecasts and the countries where the investee companies operate.

For the investment in Shanghai RAAS Blood Products Co. Ltd. (hereinafter SRAAS), as of 31 December 2022, the market value of SRAAS shares was CNY 6.34. As a consequence of the prolonged decline in the fair value of SRAAS below its cost, there is an indication of impairment.

	31/12/2022	31/12/2021	Acquisition date
SRAAS share price	CNY 6.34	CNY 6.80	CNY 7.91

Therefore, the recoverable value of the investment in SRAAS has been determined using the present value of the cash flows over 14 years, as SRAAS operates in an emerging market, where current investments are expected to result in long-term growth beyond 5 years. Cash flows from the fourth year have been extrapolated to 10 years more, using growth rates that reduce the fourth-year growth rate to the long-term growth rate to reflect a better estimate of medium-term growth.

The key assumptions used in impairment testing of the equity investments for 2022 were as follows:

	Perpetual growth rate	Pre-tax discount rate
Grifols Australia Pty Ltd.	2,6%	10,7%
Grifols Brasil, Ltda.	2,0%	16,8%
Gripdan Invest, S.L.	1,6%	12,8%
Grifols Nordic AB	2,0%	8,7%
Grifols UK, Ltd.	1,5%	10,5%
Kiro Grifols, S.L.	1,5%	11,6%
Laboratorios Grifols, S.A.	1,6%	11,1%
Shanghai RAAS Blood Products Co. Ltd.	3,3%	9,3%
Progenika Biopharma, S.A.	1,6%	10,0%

Notes to the Annual Accounts

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

Risk free rate: normalized government bonds at 10 years
Market risk premium: premium based on market research
Unlevered beta: average market beta
Debt to equity ratio: average market ratio

GRIFOLS, S.A.
Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
The discount rate used reflects specific risks relating to the equity investments and the countries in which they operate. The main assumptions used for determining the discount rate are as follows:
• Risk free rate: normalized government bonds at 10 years
• Market risk premium: premium based on market research
Unlevered beta: average market beta •
• Debt to equity ratio: average market ratio
Only for those investments in companies that, due to the specific nature of their activity do not have estimates of future cash flows, impairment has been calculated by comparing their equity value at the end of the year with the net book value of the investment.
In 2022, as a result of the impairment test performed, the Company recorded an impairment of the investments in:
Investment		Thousand Euros
Grifols Brasil Ltda.		9,229
Laboratorios Grifols, S.A.		55,325
Grifols Viajes, S.A.		923
Grifols Argentina, S.A.		856
Aigües Minerals de Vilajuïga, S.A.		1,313
Grifols Egypt for Plasma Derivatives (S.A.E.)		6,010
Grifols Escrow Issuer, S.A.		44,391
Grifols Middle East & Africa LLC.		661
Progenika Biopharma, S.A.		1,238
Total impairment		119,946
In the current economic context, the reasonably possible changes considered for equity investments are a variation in the discount rate (+/-50bps), as well as in the estimated perpetual growth rate (+/-50bps), with independent analysis.
The reasonably possible changes in key assumptions considered by management in the calculation of the equity investments recoverable amount would cause their carrying amount to exceed the recoverable amount as follows:
Potential impairment	Perpetual growth rate -50bps	Pre-tax discount rate +50bps
Grifols Brasil Ltda.	1%	1%
Laboratorios Grifols, S.A.	8%	11%
Progenika Biopharma, S.A.	3%	3%

The subsidiaries with direct and indirect participation, 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

Potential impairment

(b) Other Information

The subsidiaries with direct and indirect participation, 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.) and Kiro Grifols, S.L. (audited by LKS Auditores, S.L.P.)

Grifols Viajes, S.A., Aigües Minerals de Vilajuïga, S.A., Gripdan Invest, S.L., Grifols Japan, K.K., Grifols Escrow Issuer, S.A., Grifols Egypt for Plasma Derivatives, S.A.E., Plasmavita Healthcare II GmbH., Albimmune, S.L., Grifols Biotest Holdings GmbH and Grifols Pyrenees Research Center, S.L have not been audited.

Notes to the Annual Accounts

(13) Financial Assets by Category

(a) Classification of financial assets by category

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

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
All the financial assets in investments in equity instruments of group companies and associates have been classified as financial assets at cost.
(13) Financial Assets by Category
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 III.
Net losses and gains by category of financial asset
Net losses and gains by category of financial asset are as follows:
	Thousand Euros
2022	Financial asset at amortised cost	Total
Finance income at amortised cost, Group companies	282,305	282,305
Finance income at amortised cost	8,905	8,905
Net gains in profit and loss	291,210	291,210
	291,210	291,210

Net losses and gains by category of financial asset
Net losses and gains by category of financial asset are as follows:
	Thousand Euros
2022	Financial asset at amortised cost	Total




	291,210	291,210

	Thousand Euros
2021	Financial asset at amortised cost	Total
Finance income at amortised cost, Group companies	240,347	240,347
Finance income at amortised cost	15	15
Net gains in profit and loss	240,362	240,362

Notes to the Annual Accounts

(14) Investments and Trade Receivables

(a) Investments in Group companies

	36
	GRIFOLS, S.A.
	Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
(14) Investments and Trade Receivables

Investments in Group companies
Details of investments in Group companies and related parties are as follows:
			Thousand Euros
	2022		2021
	Non-current	Current	Non-current	Current

Group		103,269	6,977,554	150,000
Loans	7,144,755
Receivables, tax effect (note 22)	-	14,771	-	108,726
Interest	-	4,993	-	2,757
	7,144,755	123,033	6,977,554	261,483

Three subordinated loans with subsidiary entities that accrue interest at a market rate, with no due date established and an amount of Euros 3,412 million. The Company will not request the payment of these loans in the short term. One of them was signed during 2022 with Grifols Biotest Holdings GmbH and amounts Euros 218 million.
Loans totalling Euros 3,836 million that accrue interest at a market rate (see Appendix III).

(b) Investments

	At 31 December 2022 the Company has several loans with Group companies. The most significant loans are:
-	Three subordinated loans with subsidiary entities that accrue interest at a market rate, with no due date established and an amount of Euros 3,412 million. The Company will not request the payment of these loans in the short term. One of them was signed during 2022 with Grifols Biotest Holdings GmbH and amounts Euros 218 million.
-	Loans totalling Euros 3,836 million that accrue interest at a market rate (see Appendix III).


	Interest correspond to the interests on the subordinated loans.


	Details of investments are as follows:
				Thousand Euros
		2022		2021
		Non-current	Current	Non-current	Current

	Other current financial assets	449	-	-	-
	Financial instruments derivatives (Note 15)	26,977	11,536	2,068	3,238
	Deposits and guarantees	1,773	33	1,552	6

At 31 December 2022, Euros 943 thousand (Euros 749 thousand in 2021) of guarantees and deposits are associated with leases with Centurion Real Estate SOCIMI, S.A., a related party of Grifols S.A. (see Note 24) and Euros 559 thousand correspond to leases arranged with a Group company (Euros 559 thousand in 2021).

Notes to the Annual Accounts

(c) Trade and other receivables

(d) Amounts denominated in foreign currencies

the reimbursement of the value added tax. The Company files consolidated VAT and income tax returns and is the head of the consolidation group.

Amounts denominated in foreign currencies Details of monetary financial assets denominated in foreign currencies are as follows:		Thousand Euros
2022	US Dollar	Other	Total
Trade and other receivables
Trade receivables – current	159	-	159
Trade receivables from Group companies and associates – current	2,820	130	2,950
Other receivables	2	-	2
Total current financial assets	2,981	130	3,111

Notes to the Annual Accounts

38
GRIFOLS, S.A.
Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
			Thousand Euros
2021		US Dollar	Other	Total
Trade and other receivables
Trade receivables – current		153	1	154
Trade receivables from Group companies and associates – current		1,980	3	1,983
Other receivables		5	-	5
Total current financial assets		2,138	4	2,142
Total financial assets		2,138	4	2,142

Details of exchange differences recognised in profit or loss on financial instruments, distinguishing between settled and outstanding transactions, are as follows:
			Thousand Euros
	Settled	2022 Outstanding	Settled	2021 Outstanding
Trade and other receivables

Trade and other receivables





	Details of exchange differences recognised in profit or loss on financial instruments, distinguishing between settled and
outstanding transactions, are as follows:		Thousand Euros
		2022		2021
	Settled	Outstanding	Settled	Outstanding
Trade and other receivables
Trade receivables – current	(14)	9	(36)	11
Trade receivables from Group companies – current	546	(124)	311	73
Cash and cash equivalents
Cash	(409)	-	(939)	1,052
Total current financial assets	123	(115)	(664)	1,136

(15) Financial derivatives

The Company uses financial derivatives to hedge against the risk that the future cash flows are exposed. In 2022, the Company considered that the requirements detailed in Note 4, regarding the registration and valuation rules, have been fulfilled in order to classify the financial instruments detailed below as hedging instruments.

The Company performs an analysis to assess to what extent the changes in the cash flows of the hedging instrument would offset the changes in the cash flows of the hedged item attributable to the risk that is intended to be hedged. Taking this analysis into account, the Company determines the existence of the economic relationship and the coverage ratio.

At the year-end, the Company analyses the ineffectiveness and assesses whether an economic relationship continues to exist or whether the set hedge ratio is appropriate. The possible sources of ineffectiveness considered by the Company to determine the hedging relationship and the hedge ratio are:

The hedging instrument and the hedged item have different start dates and trade dates.
The underlying of the hedged item and the hedging instrument are not homogeneous.

Notes to the Annual Accounts

a) Cash flow hedge

			39
			GRIFOLS, S.A.
				Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Cash flow hedge
At 31 December 2022, the Company holds the following hedging instruments:
				Thousand Dollars		Thousand Euros
	Hedging			Notional		Ineffectiveness recognised in		Hedging instrument fair value
Hedged item	instrument	Hedged risk	Type	value	Due date1	profit or loss	Asset2	Liability
Liabilities issued in USD	Currency swap	USD/EUR exchange rate	USD purchase	150,000	2024	-	10,095	-
Liabilities issued in USD	Currency swap	USD/EUR exchange rate	USD purchase	150,000	2024	-	10,091	-
Liabilities issued in USD	Currency swap	USD/EUR exchange rate	USD purchase	200,000	2024	-	13,460	-
Liabilities issued in USD	Currency swap	USD/EUR exchange rate	USD purchase	205,000	2024	96	3,534	3,990
(1) and loss account. (2)						The maturity of the hedging instrument matches with the year when the cash flows are expected to occur and affect the profit
	over the life of the instrument.					The balance sheet caption "Short-term derivatives" includes 1,333 thousand Euros corresponding to the initial cost that is accrued
In 2021, the Company had no financial derivatives classified as hedging instruments.
The breakdown of the amounts recorded in equity and in the profit or loss account in 2022 and 2021 are as follows:
							Thousand Euros
						2022		2021
Income and expense recognised directly in equity						(16,632)		-
Amounts transferred to the income statement
Recycling of interest expense						6,671		-

Liabilities issued
in USD	Currency swap	USD/EUR exchange rate	USD
Liabilities issued	Currency	USD/EUR	USD
in USD Liabilities issued	swap Currency	exchange rate USD/EUR	USD
in USD Liabilities issued in USD	swap Currency swap	exchange rate USD/EUR exchange rate	USD

(1) and loss account.				The maturity of the hedging instrument matches with the year when the cash flows are expected to occur and affect the profit
(2)	over the life of the instrument.			The balance sheet caption "Short-term derivatives" includes 1,333 thousand Euros corresponding to the initial cost that is accrued
In 2021, the Company had no financial derivatives classified as hedging instruments.
The breakdown of the amounts recorded in equity and in the profit or loss account in 2022 and 2021 are as follows:
						Thousand Euros
						2022	2021
Income and expense recognised directly in equity						(16,632)		-
Amounts transferred to the income statement
Recycling of interest expense						6,671		-
Hedging reversal						721		-
Recycling of exchange rate differences						4,461		-

				As of December 31, 2022, cash flow hedges with their notional or contractual values, and their fair values, were as
follows:

				Thousand Dollars Notional value	2023	Thousand Euros 2024		Net fair value

Interest rate and/or currency swaps: Cash flow hedges				705.000	10.203	22.987		33.190
				705,000	10,203	22,987		33,190

	Thousand Dollars	Thousand Euros
			value
Interest rate and/or currency swaps:

Notes to the Annual Accounts

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

Cross-currency swaps

The loan signed with the Group company, Grifols Escrow Issuer, S.A. amounting to US Dollars 687.4 million and maturing in October 2028, has been hedged through currency swaps that convert the face value of the loan and the interest to be settled from US Dollars to Euros. The characteristics of the financial derivatives are as follows:

On 28 June 2022 the Company entered into a fixed-for-fixed currency swap agreement with due date 15 October 2024. The agreement set the exchange of currency flows EUR-USD under the following terms:
Grifols, S.A. received a loan in euros for an amount of Euros 194 million with an interest rate of 3.10%.
Grifols S.A. granted a loan in US dollars for an amount of US Dollars 205 million with an interest rate of 4.75%.
On 5 October 2021 the Company entered into a fixed-for-fixed currency swap agreement with some financial entities with due date 15 October 2024. The agreement set the exchange of currency flows EUR-USD under the following terms:
Grifols, S.A. received a loan in euros for an amount of Euros 173 million with an interest rate of 3.78%.
Grifols S.A. granted a loan in US dollars for an amount of US Dollars 200 million with an interest rate of 4.75%.
On 5 October 2021 the Company entered into two fixed-for-fixed currency swap agreements with due date 15 October 2024. The agreement set the exchange of currency flows EUR-USD under the following terms:
Grifols, S.A. received a loan in euros for an amount of Euros 259 million with an interest rate of 3.59%.
Grifols S.A. granted a loan in US dollars for an amount of US Dollars 300 million with an interest rate of 4.75%.

Regarding the financial derivative agreement dated on October 5, 2021, it was considered as a hedge instrument on 21 April 2022, being treated previously as a financial asset at fair value with changes in the profit or loss account. Up to that date, the impact on the profit or loss account of the fair value variations of such instrument amounted to an income of 16,646 thousand Euros, recorded under the disclosure "Fair value adjustments recognized in profit and loss" in the attached profit and loss statement (5,306 thousand Euros in 2021).

(16) Prepayments

At 31 December 2022 and 2021, prepayments include mainly insurance premium and maintenance prepayments.

(17) Equity

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

(a) Capital

At 31 December 2022 and 2021 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 of that year and, subject, according to the commercial law, to the approval of the distribution of dividends by the Company's shareholders. This preferred dividend is not cumulative if sufficient distributable profits are not obtained in the period.

Notes to the Annual Accounts

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

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, S.A. ordinary share.
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 2022 and 2021.

(b) Share premium

This reserve is freely distributable.

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

During 2021 the Company settled the 2018 RSU plan causing an increase of Euros 1,268 thousand in reserves. In 2022 the Company has settled the 2019 RSU plan leading to a rise of Euros 2,187 thousand in reserves.

During 2021 the Company distributed a dividend from retained earnings of Euros 247,520 thousand that was approved in the annual general meeting held on 21 May 2021.

(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 2022 and 2021, 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 meeting held on 11 March 2021, the Board of Directors agreed to implement a program to repurchase Grifols' treasury stock (the Buyback Program), in accordance with the authorization granted by Grifols' shareholders at an ordinary general meeting held on 9 October 2020, under point twelve of the agenda.

The Buyback Program was created with the aim of using Grifols' treasury stock (Class A and Class B) as consideration in certain future acquisitions that Grifols may make (as the company has done on previous occasions).

This Buyback Program began on 12 March 2021 and had been in force until 14 June 2021 (both dates included).

Notes to the Annual Accounts

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

Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Grifols entrusted the execution of the Buyback Program to an independent bank, and therefore Grifols had not exercised any control over the bank's decisions in this regard.
During 2022, the Company acquired 500,000 treasury stocks (Class B shares).
In March 2021 the Group delivered 361,530 treasury stocks (Class B shares) to eligible employees as compensation for the Restricted Share Unit Retention Plan, of which 127,438 were given to Company employees (see Note 17 (d)).
In March 2022 the Group delivered 370,746 treasury stocks (Class B shares) to eligible employees as compensation for the Restricted Share Unit Retention Plan, of which 142,952 were given to Company employees (see Note 17 (d)).
The Company held Class B treasury stock equivalent to 1.3% of its capital at 31 December 2022 and 31 December 2021.
Movement in Class A treasury stock during 2022 and 2021 has been as follows:
		Thousand Euros	Euros
	Number of Class A shares	Nominal	Average acquisition value
Acquisitions of Class A shares	3,944,430	89,959	22.81
Balance at 31 December 2021	3,944,430	89,959	-
Acquisitions of Class A shares	-	-	-
Disposals of Class A shares	-	-	-
Balance at 31 December 2022	3,944,430	89,959	-
Movement in Class B treasury stock during 2022 and 2021 has been as follows:	Number of Class	Thousand Euros	Euros Average
	B shares	Nominal	acquisition value
Balance at 1 January 2021	3,012,164	43,734	-
Acquisitions of Class B shares	2,419,896	35,744	14.77
Disposals of Class B shares	(361,530)	(5,249)	-
Balance at 31 December 2021	5,070,530	74,229	-
Acquisitions of Class B shares	500,000	3,459	6.92

	A shares	Nominal	Average acquisition value





Movement in Class B treasury stock during 2022 and 2021 has been as follows:

	Number of Class B shares	Nominal	Average acquisition value
Balance at 1 January 2021	3,012,164	43,734	-
Acquisitions of Class B shares	2,419,896	35,744	14.77
Disposals of Class B shares	(361,530)	(5,249)	-
Balance at 31 December 2021	5,070,530	74,229	-
Acquisitions of Class B shares	500,000	3,459	6.92
Disposals of Class B shares	(370,746)	(5,427)	-

(iii) Differences on redenomination of capital to Euros

(iv) Voluntary reserves

These reserves are freely distributable.

Notes to the Annual Accounts

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

(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 2021, the Company has settled the 2018 RSU plan for an amount of Euros 7,528 thousand, of which 2,790 thousand are from the Company.

At 31 December 2022, the Company settled the 2019 RSU plan for an amount of Euros 8,128 thousand, of which 3,175 thousand were from the Company.

Because this commitment is settled in shares, it is recognised in equity and it totals Euros 7,303 thousand at 31 December 2022 (Euros 9,838 thousand in 2021).

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

(a) Contingencies

Contingent liabilities for bank and other guarantees are disclosed in Note 20. The Company does not expect any significant liabilities to arise from these guarantees.

(b) Commitments with employees

In the event of a takeover, the Company has agreements with 19 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 4 members of Senior management who will receive a termination benefit ranging from one to two years' salary, depending on the circumstances.

(19) 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 V.

Notes to the Annual Accounts

(b) Net losses and gains by financial liability category

44
GRIFOLS, S.A.
Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Net losses and gains by financial liability category
Net losses and gains by financial liability category are as follows:
	Thousand Euros
2022	Financial liabilities at amortised cost	Total
Finance costs at amortised cost, third parties	(108,132)	(108,132)
Finance costs at amortised cost, Group companies	(293,853)	(293,853)
Net losses in profit and loss	(401,985)	(401,985)
	(401,985)	(401,985)
	Thousand Euros
2021	Financial liabilities at amortised cost	Total

		amortised cost		Total
Finance costs at amortised cost, third parties
Finance costs at amortised cost, Group companies		(108,132)		(108,132)
		(293,853)		(293,853)
Net losses in profit and loss		(401,985)		(401,985)


			Thousand Euros
2021		Financial liabilities at amortised cost		Total
Finance costs at amortised cost, third parties
		(108,473)		(108,473)
Finance costs at amortised cost, Group companies		(182,964)		(182,964)
Net losses in profit and loss		(291,437)		(291,437)
		(291,437)		(291,437)

(20) Payables and Trade Payables
Group companies and associates
Details of Group companies and associates are as follows:
			Thousand Euros
	2022		2021
	Non-current	Current	Non-current	Current
Group

(20) Payables and Trade Payables

(a) Group companies and associates

Finance costs at amortised cost, third parties		(108,473)		(108,473)
Finance costs at amortised cost, Group companies		(182,964)		(182,964)
Net losses in profit and loss		(291,437)		(291,437)

(20) Payables and Trade Payables
Group companies and associates
Details of Group companies and associates are as follows:
			Thousand Euros
	2022		2021
	Non-current	Current	Non-current	Current
Group
Payables	6,419,171	60	4,605,868	60
	-	21,400	-	25,159
Payables, tax effect (Note 22)				17,365
Interest	-	40,260	-

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.

Notes to the Annual Accounts

(b) Payables

	45 GRIFOLS, S.A. Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)




Details of payables are as follows:
			Thousand Euros
	2022		2021
	Non-current	Current	Non-current	Current
Unrelated parties
Promissory notes	2,556,641	12,554	2,553,548	110,638
Loans and borrowings	1,340,473	50,887	1,363,205	41,608
Interest	-	10,012	-	472
Finance lease payables (Note 8)	52	391	430	710
	3,990	-	-	-
Financial instruments derivatives (Note 15)		942	1,148	1,413
Payables	576

(i) Senior Notes

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

On 15 November 2019, as part of Group's debt refinancing process, Grifols, S.A. closed the issuance of 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 bear an annual interest rate of 2.25% and 1.625%, respectively. The Notes were admitted to listing on the Irish Stock Exchange. On 2 December 2021, Grifols, S.A. announced a cash tender offer of 100% of the principal amount plus the accrued and unpaid interests of the Senior Secured Notes up to the equivalent in Euros of US Dollars 110,317 thousand. In January 2022, the agreement had been closed, so this amount was classified as current liability as of 31 December 2021. The detail by maturity of the principal at 31 December 2022 and 2021 is the following:
			Thousand Euros
		2022		2021
Maturity	Currency	Principal		Principal
2022	Euros		-		97,535
2025	Euros		837,856		837,856
2027	Euros		739,609		739,609

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.

46 GRIFOLS, S.A. Notes to the Annual Accounts

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

(ii) Loans and borrowings

Between 2017 and 2018, Grifols, S.A. obtained two loans from the European Investment Bank amounting Euros 85,000 thousand each one, 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. At 31 December 2022, the carrying amount of the loans obtained from the European Investment Bank totalled Euros 116,875 thousand (Euros 138,125 thousand at 31 December 2021).

Senior Secured Debt

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.

	thousand at 31 December 2021).	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. At 31 December 2022, the carrying amount of the loans obtained from the European Investment Bank totalled Euros 116,875 thousand (Euros 138,125
Senior Secured Debt
	margin pegged to Euribor, maturity in 2027 and quasi-bullet repayment structure.	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%
	The terms and conditions of the senior secured debt are as follows:
•	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.	At 31 December 2021, the Company had early amortised the amount of Euros 74,246 thousand regarding the
		Tranche B in Euros. The detail by maturity of the principal at 31 December 2022 and 2021 is the following: Thousand Euros
		2022	2021
Maturity	Currency	Principal	Principal
2023	Euros	3,269	3,269
2024	Euros	13,076	13,076
2025	Euros	13,076	13,076
2026	Euros	13,076	13,076
2027	Euros	1,216,058	1,216,058

At 31 December 2022, the Tranche B in US Dollars amounting Euros 2,169,407 thousand is 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 60% of the consolidated EBITDA of the Group.

In accordance with the senior secured debt contract, the Group is subject to compliance with some covenants. At 31 December 2022 and 2021, 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 VII.

Non-current and current promissory notes are presented net of loan arrangement costs, which at 31 December 2022 amount to Euros 20,824 thousand (Euros 23,917 thousand at 31 December 2021).

Notes to the Annual Accounts

(d) Trade and other payables

47
GRIFOLS, S.A.
Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

Non-current and current loans and borrowings are presented net of loan arrangement costs, which at 31 December 2022 amount to Euros 14,330 thousand (Euros 17,094 thousand at 31 December 2021).
The Company has extended guarantees to banks on behalf of Group companies for Euros 7,893 thousand at 31 December 2022 (Euros 7,893 thousand at 31 December 2021).
Trade and other payables


Details of trade and other payables are as follows:	Thousand Euros
	2022	2021
	Current	Current

Group Suppliers (note 24)	9,235	15,624
Related parties
Suppliers (note 24)	4,572	5,071
Unrelated parties
Suppliers	54,240	66,467
Personnel	11,541	12,547
Current tax liabilities (note 22)	-	68,986
Public entities, other (note 22)	3,399	3,531
	82,987	172,226

(e) Classification by maturity

Notes to the Annual Accounts

(f) Amounts denominated in foreign currencies

	48
	GRIFOLS, S.A.
	Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Amounts denominated in foreign currencies
The Euro value of monetary financial liabilities denominated in foreign currencies is as follows:

			Thousand Euros
	US Dollar	Chinese Yuan	2022 Brazilian Real	Other currencies	Total
Group companies and associates, non-current	644,536	-	-	-	644,536
Total non-current liabilities	644,536	-	-	-	644,536
Current payables
Other financial liabilities	144	-	-	-	144
Group companies and associates, current	5,471	-	-	-	5,471
Trade and other payables
Suppliers	1,810	-	1	54	1,865
Suppliers, Group companies	92	218	292	78	680
Total current liabilities	7,517	218	293	132	8,160
Total financial liabilities	652,053	218	293	132	652,696
			Thousand Euros
			2021
	US Dollar	Chinese Yuan	Brazilian Real	Other currencies	Total
Trade and other payables
Suppliers	17,294	-	-	43	17,337
Suppliers, Group companies	315	110	260	52	737
Total current liabilities	17,609	110	260	95	18,074
Total financial liabilities	17,609	110	260	95	18,074

Trade and other payables





			Thousand Euros
			2021
	US Dollar	Chinese Yuan	Brazilian Real	Other currencies	Total
Trade and other payables
			-	43	17,337
Suppliers	17,294	-
Suppliers, Group companies	315	110	260	52	737
Total current liabilities	17,609	110	260	95	18,074

Notes to the Annual Accounts

49
GRIFOLS, S.A.
Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Details of exchange differences recognised in profit or loss on financial instruments, distinguishing between settled and outstanding transactions, are as follows:
		Thousand Euros
		2022		2021
	Settled	Outstanding	Settled	Outstanding
Group companies and associates, non-current	12,795	-	-	-
Total non-current liabilities	12,795	-	-	-
Current payables
Loans and borrowings	(326)	-	(685)	-
Group companies and associates, current	(1,229)	299	-	-
Trade and other payables			(434)	(358)
Current payables to suppliers	(496)	167
Current group payables to suppliers	(2,000)	-	(35)	(14)
Total current liabilities	(4,051)	466	(1,154)	(372)
Total financial liabilities	8,744	466	(1,154)	(372)

Other guarantees to group companies and associates

In accordance with the provision of section 357 of the Irish Companies Act 2014, the Company has irrevocably guaranteed all liabilities of an Irish subsidiary undertaking, Grifols Worldwide Operations Limited (Ireland).

(21) Late Payments to Suppliers. "Reporting Requirement". Second Additional Provision of Law 31/2014 of 4 December 2014
In accordance with the aforementioned Law, the following information corresponding to the Company is disclosed:
			Days
		2022		2021
Weighted average maturity period		56		53
Ratio of payments		57		56
Ratio of outstanding invoices		50		32

			Thousand Euros

(g) Other guarantees to group companies and associates

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

Other guarantees to group companies and associates

In accordance with the provision of section 357 of the Irish Companies Act 2014, the Company has irrevocably guaranteed all liabilities of an Irish subsidiary undertaking, Grifols Worldwide Operations Limited (Ireland).


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

In accordance with the aforementioned Law, the following information corresponding to the Company is disclosed:
		Days

	2022	2021
Weighted average maturity period	56	53
Ratio of payments	57	56
Ratio of outstanding invoices	50	32
		Thousand Euros
	2022	2021
Total payments	306,701		296,970
Outstanding invoices	35,957		42,019

Thousand Euros

Notes to the Annual Accounts

50
GRIFOLS, S.A.
Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

Detailed information about the invoices paid in a shorter period than the maximum established by the aforementioned Law is as follows:

	2022
Payments monetary value (thousand Euros)	178,718
Percentage over the total monetary value paid to suppliers	58%
Number of invoices paid	5,276
Percentage of the total number of invoices paid to suppliers	25%

(22) Taxation

	GRIFOLS, S.A.
	Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Detailed information about the invoices paid in a shorter period than the maximum established by the aforementioned Law is as follows:
				2022




Details of balances with public entities are as follows:		Thousand Euros
	2022		2021
	Non-current	Current	Non-current	Current
Assets
Deferred tax assets	9,150	-	10,477	-
Current tax assets	-	2,486	-	358
Value added tax and similar taxes	-	18,113	-	16,376
	9,150	20,599	10,477	16,734

Liabilities
Deferred tax liabilities	2,580	-	1,031	-
Current tax liabilities	-	-	-	68,986
		-	-	454
Value added tax and similar taxes	-
Social Security	-	1,265	-	1,132
Withholdings	-	2,134	-	1,945
	2,580	3,399	1,031	72,517

Notes to the Annual Accounts

51
GRIFOLS, S.A.
Notes to the Annual Accounts

(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
Details by company of intercompany receivables and payables resulting from the tax effect of filing consolidated
tax returns are as follows:
	Thousand Euros
	2022	2021
	Current	Current
Receivables (Note 14)
Diagnostic Grifols, S.A.	-	35
Instituto Grifols, S.A.	8,067	99,791
Biomat, S.A.	44	68
Grifols International, S.A.	1,082	1,783
Grifols Movaco, S.A.	4,776	4,194
Grifols Viajes, S.A.	80	410
Grifols Engineering, S.A.	275	247
Gripdan Invest, S.L	447	1,567
Araclon Biotech, S.L	-	631
	14,771	108,726

	Thousand Euros
	2022	2021
	Current	Current

Payables (Note 20)
Biomat, S.A. Grifols Viajes, S.A	427 25	235 238
Instituto Grifols, S.A.	10,372	8,553
Laboratorios Grifols, S.A.	3,263	8,002
	492	167

Grifols Movaco, S.A VCN Biosciencies, S.L	-	1,435

	Current


427	235
25	238
10,372	8,553
3,263	8,002
492	167
-	1,435
396	307
257	128
141	301
	1,971
	3,822
	-

21,400	25,159
	Thousand Euros Current 4,654 1,129 244

Notes to the Annual Accounts

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

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

Tax	Years open to inspection

Income tax	2017-2022
Value added tax	2018-2022
Personal income tax	2018-2022
Capital gains tax	2018-2022
Tax on Economic Activities	2019-2022
Social Security	2019-2022
Non-residents	2019-2022
Customs duties	2019-2022

Years open to inspection

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.

In 2022 Grifols, S.A., has been notified of an inspection for corporate income tax from 2017 to 2019 and VAT and withholding tax from 2018 to 2019.

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

Grifols, S.A. and some companies of the consolidated tax group were subject of a tax inspection by the Spanish tax authorities (Agencia Estatal de Administración Tributaria) of the income tax for the fiscal years 2014, 2015 and 2016, and the personal income tax and the value added tax for the fiscal years 2015 and 2016. As a result of the procedure, the Spanish tax authorities issued a tax inspection report, which was signed in accordance by the Group on 8 November 2021.

Regarding the income tax, the aforementioned report adjusted certain transactions and calculations related to deductions to encourage activities, other tax incentives and the deductibility of certain expenses, as well as the valuation of some intercompany transactions, considering different interpretations of the allocation of tax loss carryforwards in different jurisdictions. These adjustments did not entail any sanction, as the tax authorities considered that the Group had made a diligent and reasonable interpretation of the tax legislation.

Concerning the value added tax, the deductibility of certain tax liabilities was adjusted, as well as the application of the special tax regime.

As a result of the tax inspection, the Company adjusted the non-deductible VAT and the income tax in the amount of Euros 63 thousand and Euros 320 thousand, respectively. The differences identified by the Spanish tax authorities were recorded as part of the current tax included in the balance sheet caption "Current tax liabilities" at 31 December 2021.

(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 S.A. and Grifols Escrow Issuer S.A.

Law 38/2022 has incorporated a temporary measure with effect for tax periods beginning in 2023, limiting the amount of the individual tax losses of each of the entities comprising the tax group for corporate income tax purposes by 50%. Under the terms in which this measure has been approved, it will have an impact on the use of tax loss carryforwards by the consolidated tax group Grifols S.A. The Company is currently assessing the impact of this measure and the alternatives that may mitigate this effect, although it is not possible to quantify this impact at this time.

Notes to the Annual Accounts

		53
		GRIFOLS, S.A.

		Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
The Pilar 2 Law proposes to establish a worldwide minimum taxation of 15% in Corporate Income Tax (IS) for those companies with a turnover of more than 750 M€. The Company is currently assessing the impact of this measure, however it is not expected to have a significant impact on its financial statements.
A reconciliation of net income and expenses for the year with the taxable income is provided in Appendix VIII.
The relationship between the tax income and accounting profit for the year is shown in Appendix IX.
Details of the tax income recognised in the income statement are as follows:
					Thousand Euros
				2022	2021

Current tax Current year				(50,065)		(42,299)

				(50,065)		(42,299)
Deferred tax
Source and reversal of temporary differences
Property, plant and equipment Financial investments				(36)	-	(217) 962
Others				1,157		626
					-
Prior year adjustments						177
Deductions generated				(2,277)		(2,587)
Deductions applied				1,923		7,805
Adjustment of deductions in prior years				27		469
Other corporate income tax expenses				701		576
Non-deductible provisions				7,000		-
				(41,570)		(34,488)

Details of deferred tax assets and liabilities by type of asset and liability are as follows:
			Thousand Euros
	Assets		Liabilities		Net
	2022	2021	2022	2021	2022	2021
Property, plant and equipment	61	68	(960)	(1,004)	(899)	(936)
Grants	-	-	(26)	(27)	(26)	(27)
Restricted share unit retention plan	-	900	-	-	-	900
Provisions	1,195	962	-	-	1,195	962
Derivatives	-	-	(1,594)	-	(1,594)	-
Rights to tax deductions and credits	7,894	8,547	-	-	7,894	8,547

			Thousand Euros
Details of deferred tax assets and liabilities by type of asset and liability are as follows:	Assets		Liabilities		Net
	2022	2021	2022	2021	2022	2021
Property, plant and equipment	61	68	(960)	(1,004)	(899)	(936)
Grants	-	-	(26)	(27)	(26)	(27)
Restricted share unit retention plan	-	900	-	-	-	900
Provisions	1,195	962	-	-	1,195	962
Derivatives	-	-	(1,594)	-	(1,594)	-
Rights to tax deductions and credits	7,894	8,547	-	-	7,894	8,547

Notes to the Annual Accounts

54
GRIFOLS, S.A.
Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
	In accordance with prevailing tax legislation in Spain, share-based payments to employees are income tax deductible

	Thousand Euros
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:	2022	2021
Deferred tax assets relating to temporary differences	609	827
Total assets	609	827
Deferred tax liabilities	29	909

(b) Value added tax

(23) Environmental Information

Since 1 January 2008, the Company has filed consolidated tax returns with Instituto Grifols, S.A., Laboratorios Grifols, S.A, Diagnostic 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., Araclón Biotech, S.L. and Grifols Escrow Issuer, S.A.


Details at 31 December of property, plant and equipment used to minimise the Company's impact on the environment are as follows:
(23) Environmental Information		Thousand Euros
Description	Cost	2022 Accumulated depreciation	Net
Sewage treatment	124	(112)	12
Water saving	330	(316)	14
Electricity saving	2,077	(1,425)	652
Waste management	516	(366)	150
Others	2,108	(778)	1,330

Notes to the Annual Accounts

	55
	GRIFOLS, S.A.
Notes to the Annual Accounts


		(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
		Thousand Euros
		2021
Description	Cost	Accumulated depreciation	Net
Sewage treatment	124	(110)	14
Water saving	330	(315)	15
Electricity saving	2,015	(1,357)	658
Waste management	501	(336)	165
Others	2,042	(579)	1,463

(24) 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 20.

Details of balances by category are provided in Appendix X.

(b) Related party transactions

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

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.

In 2022 the independent members of the Company's board of directors accrued Euros 813 thousand in their capacity as such (Euros 950 thousand in 2021). In 2022, the proprietary director's total accrued remuneration amounted to Euros 965 thousand (Euros 965 thousand in 2021). The members of the Company's board of directors who have a labour relationship with the Company and senior management personnel accrued Euros 2,500 thousand and Euros 6,201 thousand, respectively (Euros 2,301 thousand and Euros 7,737 thousand in 2021). During the fiscal year 2022 other external Directors' accrued remuneration amounted to Euros 150 thousand (Euros 200 thousand in 2021).

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 18).

During 2022, the Company has paid insurance premiums for civil liability of directors amounting to Euros 1,216 thousand (Euros 1,156 thousand in 2021).

Notes to the Annual Accounts

(d) Conflicts of interest concerning the directors

(25) Income and Expenses

(a) Revenues

(b) Supplies

Notes to the Annual Accounts
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
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.
(25) Income and Expenses

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

Details of other supplies used are as follows:
	Thousand Euros
	2022	2021
Other supplies used
Purchases of spare parts	8,889	11,933
Change in inventories	(1,815)	(2,180)
	7,074	9,753
Employee benefits expense and provisions
Details of employee benefits expense are as follows:
	Thousand Euros
	2022	2021
Employee benefits expense
Social Security payable by the Company	12,315	11,241
Defined contribution plan contributions	206	180

(c) Employee benefits expense and provisions

Details of other supplies used are as follows:
	Thousand Euros

Other supplies used




Employee benefits expense and provisions
Details of employee benefits expense are as follows:
	Thousand Euros
	2022	2021

Employee benefits expense Social Security payable by the Company	12,315	11,241
Defined contribution plan contributions	206	180
Other employee benefits expenses	2,673	1,966
Provisions	152	32

	15,346	13,419
(26) Employee Information
The average headcount of the Company, distributed by department, is as follows:
	Number
	2022	2021
		128

Technical area	137
Administration and other General management	586 81	556 76
	804	760

(26) Employee Information

Number

Notes to the Annual Accounts

	57 GRIFOLS, S.A.




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

At 31 December 2022 and 2021 the distribution by gender of Company personnel and the members of the board of
directors is as follows:		Number
	2022		2021
	Female	Male	Female	Male
Directors	4	8	4	8
Technical area	112	42	98	36
Administration and other	207	418	198	369
General management	42	36	46	35


	365	504	346	448
The average number of Company employees with disability rating of more than 33% distributed by department, is as follows:

			Number 2022	2021

Technical area			2	5
Administration and other			12	9
General management			1 15	- 14

Number

(27) Audit Fees

In 2022 the Company's annual accounts auditor, Deloitte S.L., invoiced the Company for audit services that amounted a total of Euros 84 thousand (Euros 79 thousand in 2021). During 2022 and 2021 the fees related to audit services and other services invoiced by the Company's auditor, Deloitte, S.L., or for a company associated to the auditor by control, common property or management to the Company and the associated companies have been the following:







	Thousand Euros
	Fees by Deloitte S.L. or member firms of its network
	2022	2021
Audit services	84	79
Non-audit services
Other services required by the regulations	-	-
Other assurance services	-	-
Tax services	18	59
Other services	-	-
Total professional services	102	138

Notes to the Annual Accounts

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

The amounts in the above table include the total fees for services rendered in 2022 and 2021, irrespectively of the date of invoice.

(28) Subsequent events

On February 15, 2023, the Group announced the implementation of a plan to optimise costs and improve organisational efficiency. This plan will imply a workforce reduction that will affect Grifols, S.A. as a result of the rationalisation of the corporate functions in Spain.

Classification of Financial Assets by Category for the year ended 31 December 2022

							Appendix I
			GRIFOLS, S.A.				1 of 2
			Classification of Financial Assets by Category for the year ended 31 December 2022

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

				Thousand Euros
2022	Land	Buildings	Technical installations and machinery	Other installations, equipment and furniture	Under construction and advances	Other items	Total
	7,082	4,391

Cost at 1 January 2022	-	-	8,816 17	29,277 179	6,450 3,205	29,712 1,486	85,728 4,887
Additions Disposals	-	-	(4)	-	-	-	(4)
Transfers	-	-	21	666	(3,556)	131	(2,738)
Cost at 31 December 2022	7,082	4,391	8,850	30,122	6,099	31,329	87,873
	-	(146)	(7,304)	(17,234)	-	(22,601)	(47,285)
Accumulated amortisation at 1 January 2022	-	(88)	(248)	(1,548)	-	(3,162)	(5,046)
Amortisations Disposals	-	-	3	-	-	-	3
Accumulated amortisation at 31 December 2022	-	(234)	(7,549)	(18,782)	-	(25,763)	(52,328)

Classification of Financial Assets by Category for the year ended 31 December 2021

				Thousand Euros
2021	Land	Buildings	Technical installations and machinery	Other installations, equipment and furniture	Under construction and advances	Other items	Total
Cost at 1 January 2021	7,082	4,391	8,818	26,020	6,067	28,869	81,247
Additions	-	-	-	209	3,431	566	4,206
Disposals	-	-	(2)	(4)	-	(4)	(10)
Transfers	-	-	-	3,052	(3,048)	281	285
Cost at 31 December 2021	7,082	4,391	8,816	29,277	6,450	29,712	85,728
Accumulated amortisation at 1 January 2021	-	(59)	(7,055)	(15,733)	-	(18,442)	(41,289)
Amortisations	-	(87)	(249)	(1,505)	-	(4,163)	(6,004)
Disposals	-	-	-	4	-	4	8
Accumulated amortisation at 31 December 2021	-	(146)	(7,304)	(17,234)	-	(22,601)	(47,285)
Carrying amount at 31 december 2021	7,082	4,245	1,512	12,043	6,450	7,111	38,443

Classification of Financial Assets by Category for the year ended 31 December 2022

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

													Appendix II 1 of 8
					GRIFOLS, S.A.
				Classification of Financial Assets by Category	for the year ended 31 December 2022
				(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
				% ownership						Thousand Euros
Name	Registered office	Activity	Dir	Ind	Total	Share capital	Reserves	Other equity items	Interim dividends	Profit/(loss) for the year	Total equity	Carrying amount of investment (1)	Dividends received in 2022
Alkahest, Inc.	United States	Research	--	100.000	100.000	37,768	(166,345)	13,357	--	(79,657)	(194,877)	--	--
Kiro Grifols, S.L.	Spain	Research	90.000	--	90.000	3	3,304	--	--	(3,398)	(91)	45,733	--
(formerly Kiro Robotics S.L.) Progenika Biopharma, S.A.	Spain	Industrial	100.000	--	100.000	615	36,792	--	--	(1,367)	36,040	78,381	--
Instituto Grifols, S.A.	Spain	Industrial	99.998	0.002	100.000	1,538	289,607	(1,344)	--	194,046	483,847	2,882	--
Diagnostic Grifols, S.A.	Spain	Industrial	--	55% (economic rights)/ 60% (voting rights)	55% (economic rights)/ 60% (voting rights)	337	122,155	(127)	--	8,315	130,680	--	--
Grifols Movaco, S.A.	Spain	Commercial	99.999	0.001	100.000	2,405	26,234	(337)	--	5,952	34,254	4,241	--
Laboratorios Grifols, S.A.	Spain	Industrial	98.600	1.400	100.000	21,798	4,773	(286)	--	1,221	27,506	51,575	--
Gripdan Invest, S.L	Spain	Services	100.000	--	100.000	3,006	5,860	--	--	2,664	11,530	24,584	--
Biomat, S.A.	Spain	Industrial	99.900	0.100	100.000	60	3,174	(96)	--	617	3,755	156	--
Grifols International, S.A.	Spain	Commercial	99.998	0.002	100.000	2,860	55,871	(4,037)	--	9,586	64,280	6,897	--
Grifols Engineering, S.A.	Spain	Industrial	99.950	0.050	100.000	60	3,126	(52)	--	1,319	4,453	113	--
Grifols Viajes, S.A. Araclon Biotech, S.L.	Spain Spain	Services Research	99.900 --	0.100 75.850	100.000 75.850	60 12	1,334 1,098	-- --	-- --	(481) (3,450)	913 (2,340)	812 --	-- --
Grifols Worldwide Operations USA Inc.	United States	Industrial	--	100.000	100.000	--	42,930	(6,326)	--	2,055	38,659	--	--
Grifols Chile, S.A.	Chile	Commercial	99.000	--	99.000	385	24,267	4,662	--	943	30,257	385	--
Grifols Argentina, S.A.	Argentina	Commercial	95.010	4.990	100.000	956	29,749	25,354	--	869	56,928	6,353	--
Grifols Portugal Productos Farmacéuticos e Hospitalares, Lda.	Portugal	Commercial	0.010	99.990	100.000	512	9,118	--	--	707	10,337	--	--
Grifols, s.r.o.	Czech Republic	Commercial	100.000	--	100.000	52	7,740	(835)	--	1,675	8,632	52	--
Grifols USA, LLC	United States	Commercial	--	100.000	100.000	562	155,406	(12,476)	--	78,693	222,185	--	--
Grifols UK, Ltd.	United	Commercial	100.000	--	100.000	4	9,312	568	--	993	10,877	21,526	--
Grifols Italia, S.p.A.	Kingdom Italy	Commercial	100.000	--	100.000	2,496	8,016	--	--	1,744	12,256	5,316	--
	Brazil	Commercial	99.9996	0.0001	100.000	75,265	(9,294)	13,795	--	(11,145)	68,621	41,848	--
		Commercial	99.990	0.010	100.000	658	5,232	--	--	882	6,772	658	--
Grifols Brasil, Lda. Grifols France, S.A.R.L.	France

Classification of Financial Assets by Category for the year ended 31 December 2022

													Appendix II
													2 of 8
					GRIFOLS, S.A.
					Classification of Financial Assets by Category
					for the year ended 31 December 2022
				(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

				% ownership						Thousand Euros
								Other				Carrying	Dividends
Name	Registered office	Activity	Dir	Ind	Total	Share capital	Reserves	equity items	Interim dividends	Profit/(loss) for the year	Total equity	amount of investment (1)	received in 2022
Squadron Reinsurance Designated
Activity Company	Ireland	Services	--	100.000	100.000	635	86,824	(2,465)	--	7,187	92,181	--	--
(formerly Squadron Reinsurance Ltd.) Grifols Biologicals, LLC.	United States	Industrial	--	100.000	100.000	--	162,642	(41,793)	--	17,214	138,063	--	--
Grifols Shared Services North America, Inc.	United States	Services	100.000	--	100.000	--	2,229,941	(656,854)	--	4,355	1,577,442	1,344,698	--
(formerly Grifols Inc.)
Grifols Asia Pacific Pte. Ltd.	Singapore	Commercial	100.000	--	100.000	362	12,837	(2,004)	--	1,566	12,761	938	--
Grifols (Thailand), Ltd. Grifols Malaysia Sdn Bhd	Thailand Malaysia	Commercial Commercial	-- --	48.000 49.000	48.000 49.000	61 30	7,731 5,792	(856) 26	-- --	542 1,162	7,478 7,010	-- --	-- --
Grifols Polska, Sp.z.o.o.	Poland	Commercial	100.000	--	100.000	11	3,737	80	--	460	4,288	11	--
Grifols México,S.A. de CV	Mexico	Commercial	99.980	0.020	100.000	557	20,585	(2,089)	--	2,815	21,868	696	--
Grifols Australia Pty Ltd.	Australia	Industrial	100.000	--	100.000	1,695	10,215	1,909	--	607	14,426	34,974	--
				55% (economic	55% (economic
Medion Grifols Diagnostic AG	Switzerland	Industrial	--	rights)/	rights)/	2,487	10,438	(971)	--	3,895	15,849	--	--
				60% (voting rights)	60% (voting rights)
Grifols Colombia, Ltda.	Colombia	Commercial	99.990	0.010	100.000	823	470	561	--	182	2,036	575	--
Grifols Nordic AB	Sweden	Commercial	100.000	--	100.000	10	3,589	420	--	564	4,583	5,145	--
Grifols Deutschland, GmbH	Germany	Commercial	100.000	--	100.000	25	13,251	124	--	4,295	17,695	7,098	--
Grifols Therapeutic LLC.	United States	Industrial	--	100.000	100.000	(2,886)	793,576	(389,170)	--	154,347	555,867	--	--
Grifols Worldwide Operations Ltd.	Ireland	Industrial	100.000	--	100.000	--	385,823	(56,669)	11,302	165,109	505,565	512,763	--
Grifols Pharmaceutical Technology
(Shanghai) Co., Ltd. (formerly Grifols Pharmaceutical Consulting	China	Commercial	100.000	--	100.000	1,000	11,979	(319)	--	1,718	14,378	1,000	--
(Shanghai) Co., Ltd.)
				55% (economic	55% (economic
				rights)/	rights)/	--	3,537,219	(278,447)	--	139,617	3,398,389	--	--
Grifols Diagnostics Solutions Inc (formerly G-C Diagnostics Corp.)	United States	Industrial	--	60% (voting	60% (voting

Classification of Financial Assets by Category for the year ended 31 December 2022

													Appendix II
					GRIFOLS, S.A.								3 of 8
					Classification of Financial Assets by Category for the year ended 31 December 2022
		(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
				% ownership						Thousand Euros
	Registered					Share		Other equity	Interim	Profit/(loss)		Carrying amount of investment (1)	Dividends received
Name	office	Activity	Dir	Ind 55% (economic	Total 55% (economic	capital	Reserves	items	dividends	for the year	Total equity		in 2022
Grifols (H.K.), Ltd.	Hong Kong	Commercial	--	rights)/ 60% (voting rights)	rights)/ 60% (voting rights)	37,899	41,448	(12,043)	--	3,019	70,323	--	--
Grifols Japan K.K.	Japan	Commercial	100.000	--	100.000	354	3,253	294	--	202	4,103	709	--
Grifols Pharmaceutical Technology Co., Ltd. Beijing Branch	China	Commercial	--	100.000	100.000	--	(8,670)	231	--	(1,342)	(9,781)	--	--
Grifols India Healthcare Private Ltd.	India	Commercial	99.984	0.016	100.000	2	1,634	198	--	634	2,468	599	--
Grifols Canada, Ltd.	Canada	Industrial	100.000	--	100.000	--	5,500	689	(604)	1,904	7,489	2,220	--
Grifols Diagnostics Equipment Taiwan Ltd. Grifols Innovation and New	Taiwan	Commercial	100.000	--	100.000	181	1,018	(123)	--	495	1,571	181	--
Technologies Ltd.	Ireland	Research	--	100.000	100.000	--	218,965	(20,470)	--	(3,896)	194,599	--	--
AlbaJuna Therapeutics, S.L Grifols Bio Supplies Inc.	Spain	Research	--	49.000	49.000	10	3,220	822	-	(1,111)	2,941	--	--
(formerly Interstate Blood Bank, Inc.)	United States	Industrial	--	100.000	100.000	103	2,983	1,161	--	(9,540)	(5,293)	--	--
Chiquito Acquisition Corp.	United States	Corporate	--	100.000	100.000	--	63,239	(1,377)	--	1,599	63,461	--	--
Access Biologicals, LLC. and Subsidiaries. Aigües Minerals Vilajuïga, S.A.	United States Spain	Industrial Industrial	-- 99.990	100.000 0.010	100.000 100.000	-- 75	25,339 4,191	1,806 --	-- --	9,479 (1,485)	36,624 2,781	-- 2,726	-- --
GigaGen Inc.	United States	Industrial	--	100.000	100.000	1	1,325	(1,053)	--	(24,311)	(24,038)	--	--
Plasmavita Healthcare GmbH	Germany	Industrial	--	50.000	50.000	25	4,590	(20,000)	--	908	(14,477)	--	--
Goetech LLC (D/B/A Medkeeper)	United States	Industrial	--	100.000	100.000	--	52,605	(1,546)	--	94,729	145,788	--	--
Mecwins, S.A.	Spain	Industrial	--	24.990	24.990	141	6,822	96	-	(604)	6,455	--	--
Medcom, S.A.	Spain	Research	--	45.000	45.000	--	--	--	--	--	--	--	--
Plasmavita Healthcare II GmbH	Austria	Industrial	--	50.000	50.000	35	(1,042)	(6,500)	--	297	(7,210)	--	--
Shanghai RAAS Blood Products Co. Ltd.	China	Corporate	26.200	--	26.200	844,139	2,246,829	500,358	--	168,077	3,759,403	1,807,351	7,023
Grifols Korea Co. Ltd.	South Korea	Commercial	100.000	--	100.000	75	1,207	(35)	--	449	1,696	73	--
Grifols Canada Therapeutics Inc. (formerly Green Cross Biotherapeutics, Inc)	Canada	Industrial	0.020	99.980	100.000	(983)	385,002	(28,138)	--	(5,013)	350,868	19,727	--
	United States	Commercial	-- 99.990	100.000	100.000 100.000	--	(1,212)	113	--	(1,575)	(2,674)	--	--
Grifols Laboratory Solutions Inc.						684	(142)	(211)	--	(842)	(511)	50	--

Classification of Financial Assets by Category for the year ended 31 December 2022

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

													Appendix II 4 of 8
				Classification of Financial Assets by Category	GRIFOLS, S.A.
			(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)			for the year ended 31 December 2022
				% ownership					Thousand Euros
	Registered					Share		Other equity	Interim	Profit/(loss)		Carrying amount of	Dividends received
Name	office	Activity	Dir	Ind	Total	capital	Reserves	items	dividends	for the year	Total equity	investment (1)	in 2022
Biomat Newco, Corp.	United States	Industrial	--	87.100	87.100	--	45,673	(29,845)	--	(38,795)	(22,967)	--	--
Biomat Holdco, LLC.	United States	Services	--	100.000	100.000	--	62,189	(12,599)	--	--	49,590	--	--
Grifols Bio North America, LLC.	United States	Industrial	--	100.000	100.000	--	338	60	--	3,742	4,140	--	--
Grifols Escrow Issuer, S.A. Grifols Pyrenees Research Center, S.L.	Spain Andorra	Services Industrial	100.000 --	-- 80.000	100.000 80.000	60 3	29,603 --	-- --	-- --	(24,613) (37)	5,050 (34)	2,667 --	-- --
Prometic Plasma Resources, Inc.	Canada	Industrial	0.020	99.980	100.000	--	5,204	537	--	3,933	9,674	--	--
Grifols Egypt for Plasma Derivatives (S.A.E.)	Egypt	Industrial	49.000	--	49.000	66,178	446	--	--	625	67,249	46,454	--
Albimmune, S.L.	Spain	Research	--	51.000	51.000	3	--	--	--	(1,514)	(1,511)	--	--
Biotest AG and Subsidiaries (2)	Germany	Industrial	24.700	45.480	70.180	39,571	359,238	9,783	--	(16,036)	392,556	370,001	--
Grifols Biotest Holding, GmbH	Germany	Corporate	100.000	--	100.000	50	610,884	--	--	(5,562)	605,372	872,514	--
												5,324,682	7,023

(2) Biotest AG is the parent company of the Biotest Group, which is composed of the following companies: Biotest Austria, GmbH; Biotest Italia, S.R.L.; Biotest (UK) Ltd.; Biotest (Schweiz) AG; Biotest Hungaria Kft; Biotest Farmacêutica LTDA; Biotest Hellas M.E.P.E.; Biotest France SAS; Biotest Pharmaceuticals Ilaç Pazarlama Anonim Sirketi; Biotest Medical, S.L.U.; Biotest Pharma, GmbH; BioDarou PLC; Biotest Grundstücksverwaltungs GmbH; Plasma Service Europe GmbH; Cara Plasma s.r.o. y Plazmaszolgálat Kft.

Classification of Financial Assets by Category for the year ended 31 December 2021

													Appendix II
													5 of 8
					GRIFOLS, S.A.
						Classification of Financial Assets by Category for the year ended 31 December 2021
				(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

				% ownership						Thousand Euros
	Registered					Share		Other equity	Interim	Profit/(loss)		Carrying amount of	Dividends received
Name	office	Activity	Dir	Ind	Total	capital	Reserves	items	dividends	for the year	Total equity	investment (1)	in 2021
Alkahest, Inc. Kiro Grifols, S.L.	United States	Research	--	100.000	100.000	37,768	(89,797)	(5,501)	--	(76,547)	(134,077)	--	--
(formerly Kiro Robotics S.L.)	Spain	Research	90.000	--	90.000	3	6,681	--	--	(3,408)	3,276	45,703	--
Aradigm Corporation	United States	Research	--	35.130	35.130	--	--	--	--	--	--	--	--
VCN Biosciences, S.L.	Spain	Research	--	86.827	86.827	216	2,183	--	--	(1,666)	733	--	--
Progenika Biopharma, S.A.	Spain	Industrial	100.000	--	100.000	615	34,205	--	--	2,587	37,407	79,619	--
Instituto Grifols, S.A.	Spain	Industrial	99.998	0.002	100.000	1,538	175,326	1,212	--	114,282	292,358	2,750	--
Diagnostic Grifols, S.A.	Spain	Industrial	--	55% (economic rights)/ 60% (voting	55% (economic rights)/ 60% (voting	337	119,203	123	--	2,951	122,614	--	--
				rights)	rights)
Grifols Movaco, S.A.	Spain	Commercial	99.999	0.001	100.000	2,405	13,055	327	--	13,179	28,966	4,232	--
Laboratorios Grifols, S.A.	Spain	Industrial	98.600	1.400	100.000	21,798	10,626	274	--	(20,853)	11,845	91,888	--
Gripdan Invest, S.L	Spain	Services	100.000	--	100.000	3,006	3,378	--	--	2,482	8,866	24,584	--
Biomat, S.A.	Spain	Industrial	99.900	0.100	100.000	60	2,439	96	--	735	3,330	156	--
Grifols International, S.A. Grifols Engineering, S.A.	Spain Spain	Commercial Industrial	99.998 99.950	0.002 0.050	100.000 100.000	2,860 60	46,996 2,149	3,429 52	-- --	8,875 977	62,160 3,238	6,289 113	-- --
Grifols Viajes, S.A.	Spain	Services	99.900	0.100	100.000	60	1,429	--	--	(1,095)	394	735	--
Araclon Biotech, S.L.	Spain	Research	--	75.850	75.850	12	5,606	--	--	(4,507)	1,111	--	--
Grifols Worldwide Operations USA Inc.	United States	Industrial	--	100.000	100.000	--	41,218	3,045	--	1,712	45,975	--	--
Grifols Chile, S.A.	Chile	Commercial	99.000	--	99.000	385	24,016	(5,948)	--	251	18,704	385	--
Grifols Argentina, S.A.	Argentina	Commercial	95.010	4.990	100.000	956	27,768	(22,117)	--	1,982	8,589	7,209	--
Logística Grifols, S.A. de CV	Mexico	Commercial	99.990	0.010	100.000	92	4,465	(630)	--	140	4,067	235	--
Grifols Portugal Productos Farmacéuticos e Hospitalares, Lda.	Portugal	Commercial	0.010	99.990	100.000	512	7,960	--	--	1,158	9,630	--	--
Grifols, s.r.o.	Czech Republic	Commercial	100.000	--	100.000	52	6,860	527	--	880	8,319	52	--
Grifols USA, LLC	United States	Commercial	--	100.000	100.000	562	45,541	578	--	109,865	156,546	--	--
	United Kingdom	Commercial	100.000	--	100.000	4	7,936	(116)	--	1,376	9,200	21,426	--

Classification of Financial Assets by Category for the year ended 31 December 2021

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

													Appendix II 6 of 8
					GRIFOLS, S.A.
					Classification of Financial Assets by Category for the year ended 31 December 2021
		(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
				% ownership				Other		Thousand Euros		Carrying	Dividends
	Registered					Share		equity	Interim	Profit/(loss)		amount of	received
Name	office	Activity	Dir	Ind	Total	capital	Reserves	items	dividends	for the year	Total equity	investment (1)	in 2021
Grifols Italia, S.p.A.	Italy	Commercial	100.000	--	100.000	2,496	6,257	--	--	1,759	10,512	5,316	--
Grifols Brasil, Lda.	Brazil	Commercial	99.9996	0.0001	100.000	75,265	(2,745)	(20,042)	--	(6,550)	45,928	51,076	--
Grifols France, S.A.R.L.	France	Commercial	99.990	0.010	100.000	658	4,182	--	--	1,050	5,890	658	--
Biomat USA, Inc.	United States	Industrial	--	76.210	76.210	--	1,111,652	28,655	--	29,302	1,169,609	--	--
Squadron Reinsurance Designated Activity Company (formerly Squadron Reinsurance Ltd.)	Ireland	Services	--	100.000	100.000	635	77,589	(2,964)	--	9,235	84,495	--	--
Grifols Biologicals, LLC.	United States	Industrial	--	100.000	100.000	--	148,327	29,811	--	14,314	192,452	--	--
Grifols Shared Services North America, Inc.	United States	Services	100.000	--	100.000	--	2,179,385	368,767	--	50,555	2,598,707	1,214,815	--
(formerly Grifols Inc.)
Grifols Asia Pacific Pte. Ltd.	Singapore	Commercial	100.000	--	100.000	362	11,442	1,080	--	1,395	14,279	885	--
Grifols (Thailand), Ltd.	Thailand	Commercial	--	48.000	48.000	61	7,355	658	--	420	8,494	--	--
Grifols Malaysia Sdn Bhd	Malaysia	Commercial	--	49.000	49.000	30	4,427	(48)	--	1,365	5,774	--	--
Grifols Polska, Sp.z.o.o.	Poland	Commercial	100.000	--	100.000	11	3,180	--	--	556	3,747	11	--
Grifols México,S.A. de CV Grifols Australia Pty Ltd.	Mexico Australia	Commercial Industrial	99.980 100.000	0.020 --	100.000 100.000	461 1,695	15,852 9,870	(3,632) (1,814)	-- --	40 345	12,721 10,096	461 34,974	-- --
				55% (economic	55% (economic
				rights)/	rights)/
Medion Grifols Diagnostic AG	Switzerland	Industrial	--	60% (voting	60% (voting	2,487	6,838	236	--	3,599	13,160	--	--
				rights)	rights)
Grifols Colombia, Ltda.	Colombia	Commercial	99.990	0.010	100.000	823	513	(447)	--	(43)	846	575	--
Grifols Nordic AB	Sweden	Commercial	100.000	--	100.000	10	3,196	(196)	--	393	3,403	5,145	--
Grifols Deutschland, GmbH	Germany	Commercial	100.000	--	100.000	25	6,950	(679)	--	6,301	12,597	7,091	--
Grifols Therapeutic LLC.	United States	Industrial	--	100.000	100.000	(2,886)	819,979	302,969	--	177,893	1,297,955	--	--
Talecris Plasma Resources Inc. Grifols Worldwide Operations Ltd.	United States Ireland	Industrial Industrial	-- 100.000	76.210 --	76.210 100.000	-- --	14,240 365,860	14,443 15,176	-- 11,302	(2,524) 19,963	26,159 412,301	-- 512,306	-- --
Grifols Pharmaceutical Technology (Shanghai) Co., Ltd. (formerly Grifols
Pharmaceutical Consulting	China	Commercial	100.000	--	100.000	1,000	9,703	612	--	2,276	13,591	1,000	--

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

Classification of Financial Assets by Category for the year ended 31 December 2021

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

													Appendix II 7 of 8
					GRIFOLS, S.A.
					Classification of Financial Assets by Category for the year ended 31 December 2021
		(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
				% ownership						Thousand Euros
	Registered					Share		Other equity	Interim	Profit/(loss)		Carrying amount of	Dividends received
Name	office	Activity	Dir	Ind 55% (economic	Total 55% (economic	capital	Reserves	items	dividends	for the year	Total equity	investment (1)	in 2021
Grifols Diagnostics Solutions Inc (formerly G-C Diagnostics Corp.)	United States	Industrial	--	rights)/ 60% (voting rights)	rights)/ 60% (voting rights)	--	3,406,287	57,190	--	130,932	3,594,409	--	--
Grifols (H.K.), Ltd.	Hong Kong	Commercial	--	55% (economic rights)/ 60% (voting	55% (economic rights)/ 60% (voting	37,899	38,303	6,507	--	3,145	85,854	--	--
Grifols Japan K.K.	Japan	Commercial	100.000	rights) --	rights) 100.000	354	2,178	(39)	--	1,075	3,568	709	--
Grifols Pharmaceutical Technology Co., Ltd. Beijing Branch	China	Commercial	--	100.000	100.000	--	(6,871)	(450)	--	(1,799)	(9,120)	--	--
Grifols India Healthcare Private Ltd.	India	Commercial	99.984	0.016	100.000	2	749	(93)	--	884	1,542	601	--
Grifols Canada, Ltd. Grifols Diagnostics Equipment Taiwan Ltd.	Canada Taiwan	Industrial Commercial	100.000 100.000	-- --	100.000 100.000	-- 181	3,934 951	(1,108) 198	(604) --	1,566 67	3,788 1,397	2,074 181	-- --
Grifols Innovation and New Technologies Ltd.	Ireland	Research	--	100.000	100.000	--	305,313	6,365	--	(86,348)	225,330	--	--
AlbaJuna Therapeutics, S.L	Spain	Research	--	49.000	49.000	10	1,919	24	--	(1,559)	394	--	--
Grifols Bio Supplies Inc. (formerly Interstate Blood Bank, Inc.)	United States	Industrial	--	76.210	76.210	103	45,936	(1,244)	--	(3,563)	41,232	--	--
Singulex, Inc.	United States	Research	--	19.330	19.330	--	--	--	--	--	--	--	--
Chiquito Acquisition Corp. Access Biologicals, LLC. and Subsidiaries.	United States United States	Corporate Industrial	-- --	100.000 49.000	100.000 49.000	-- 5,215	60,094 --	(2,680) --	-- --	3,145 17,416	60,559 22,631	-- --	-- --
Aigües Minerals Vilajuïga, S.A.	Spain	Industrial	99.990	0.010	100.000	75	1,699	--	--	(1,508)	266	38	--
GigaGen Inc.	United States	Industrial	--	100.000	43.960	1	5,676	335	--	(4,350)	1,662	--	--
Plasmavita Healthcare GmbH	Germany	Industrial	--	50.000	50.000	25	2,412	20,000	--	2,178	24,615	--	--
Goetech LLC (D/B/A Medkeeper)	United States	Industrial	--	100.000	100.000	--	47,005	5,374	--	3,112	55,491	--	--
Mecwins, S.A.	Spain	Industrial	--	24.990	24.990	141	7,799	112	--	(682)	7,370	--	--
Biomat USA South, Inc.	United States	Industrial	--	76.210	76.210	--	--	--	--	--	--	--	--
Medcom, S.A.	Spain Austria	Research Industrial	-- --	45.000 50.000	45.000 50.000	-- 35	-- (1,105)	-- 6,100	-- --	-- 63	-- 5,093	-- --	-- --
Plasmavita Healthcare II GmbH								336,803		166,933	3,594,557	1,807,351	5,758

Classification of Financial Assets by Category for the year ended 31 December 2021

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

													Appendix II 8 of 8
					GRIFOLS, S.A.
				Classification of Financial Assets by Category		for the year ended 31 December 2021

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

				% ownership					Thousand Euros
								Other				Carrying	Dividends
	Registered					Share		equity	Interim	Profit/(loss)		amount of	received
Name	office	Activity	Dir	Ind	Total	capital	Reserves	items	dividends	for the year	Total equity	investment (1)	in 2021
Grifols Korea Co. Ltd.	South Korea	Commercial	100.000	--	100.000	75	(3)	19	--	1,210	1,301	73	--
Grifols Canada Therapeutics Inc. (formerly	Canada	Industrial	100.000	--	100.000	(983)	388,295	30,400	--	(3,292)	414,420	19,711	--
Green Cross Biotherapeutics, Inc) Grifols Laboratory Solutions Inc.	United States	Commercial	--	100.000	100.000	--	1,409	(63)	--	(2,621)	(1,275)	--	--
Grifols Middle East & Africa LLC	Egypt	Services	99.990	0.010	100.000	30	--	(5)	--	(142)	(117)	30	--
Biomat Newco, Corp.	United States	Industrial	--	87.100	87.100	--	481,498	4,659	--	--	486,157	--	--
Biomat Holdco, LLC.	United States	Services	--	100.000	100.000	--	63,952	8,161	--	--	72,113	--	--
Grifols Bio North America, LLC.	United States	Industrial	--	100.000	100.000	--	--	6	--	338	344	--	--
Grifols Escrow Issuer, S.A.	Spain	Services	100.000	--	100.000	60	--	--	--	(17,397)	(17,337)	60	--
Grifols Pyrenees Research Center, S.L.	Andorra	Industrial	--	80.000	80.000	--	--	--	--	--	--	--	--
Prometic Plasma Resources, Inc.	Canada	Industrial	--	100.000	100.000	--	--	--	--	--	--	--	--
Grifols Egypt for Plasma Derivatives (S.A.E.)	Egypt	Industrial	49.000	--	49.000	66,178	--	--	--	(1,191)	64,987	32,645	--
												3,983,162	5,758

Classification of Financial Assets by Category for the year ended 31 December 2022

							Appendix III 1 of 2
		GRIFOLS, S.A.
		Classification of Financial Assets by Category
		for the year ended 31 December 2022
	(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)


			Thousand Euros
2022	Amortised cost	Non-current Fair value	Total	Amortised cost	Current Fair value	Total	Hierarchy
Financial assets at amortised cost
Loans
Fixed rate loans	2,477,465	-	2,477,465	100,000	-	100,000
Variable rate loans	4,667,290	-	4,667,290	8,262	-	8,262
Loans, Tax effect	-	-	-	14,771	-	14,771
	-	-	-	51,031	-	51,031
Trade receivables			2,222	33	-	33
Deposits and guarantees	2,222	-
Other trade receivables	-	-	-	1,068	-	1,068
Other receivables	-	-	-	171	-	171
Total	7,146,977	-	7,146,977	175,336	-	175,336
Financial assets at fair value with changes through equity account
Derivatives	-	26,977	26,977	-	11,536	11,536	Level 2
Total	-	26,977	26,977	-	11,536	11,536

Classification of Financial Assets by Category for the year ended 31 December 2021

							Appendix III
		GRIFOLS, S.A.					2 of 2
		Classification of Financial Assets by Category
		for the year ended 31 December 2021

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

			Thousand Euros
		Non-current			Current
2021	Amortised cost	Fair value	Total	Amortised cost	Fair value	Total	Hierarchy
Financial assets at amortised cost
Loans
			2,525,000	150,000	-	150,000
Fixed rate loans	2,525,000	-
Variable rate loans	4,452,554	-	4,452,554	2,757	-	2,757
Loans, Tax effect	-	-	-	108,726	-	108,726
Trade receivables	-	-	-	74,576	-	74,576
Deposits and guarantees	1,552	-	1,552	6	-	6
Other trade receivables	-	-	-	227	-	227
Other receivables	-	-	-	280	-	280
Total	6,979,106	-	6,979,106	336,572	-	336,572
Financial assets at fair value with changes through profit and loss account
Derivatives	-	2,068	2,068	-	3,238	3,238	Level 2
Total	-	2,068	2,068	-	3,238	3,238

Details of Reserves and Profit and movement for the year ended 31 December 2022

			Thousand Euros
	Legal and statutory reserves	Differences on translation of capital to Euros	Voluntary reserves	Profit for the year	Total
Balance at 1 January 2022	23,921	3	1,790,746	(140,728)	1,673,942
Recognised income and expense	-	-		(266,296)	(266,296)
Allocation 2021 losses
Reserves	-	-	(140,728)	140,728	-
Other movements	-	-	2,187	-	2,187
Balance at 31 December 2022	23,921	3	1,652,205	(266,296)	1,409,833

Details of Reserves and Profit and movement for the year ended 31 December 2021

			Thousand Euros
	Legal and statutory reserves	Differences on translation of capital to Euros	Voluntary reserves	Profit for the year	Total
Balance at 1 January 2021	23,921	3	1,974,864	64,748	2,063,536
Recognised income and expense	-	-	-	(140,728)	(140,728)
Distribution 2020 profit
Reserves	-	-	62,134	(62,134)	-
Dividend	-	-	-	(2,614)	(2,614)
Dividend	-	-	(247,520)	-	(247,520)
Other movements	-	-	1,268	-	1,268
Balance at 31 December 2021	23,921	3	1,790,746	(140,728)	1,673,942

Details of Financial Liabilities by Category for the year ended 31 December 2022

		GRIFOLS, S.A.					Appendix V 1 of 2
		Details of Financial Liabilities by Category for the year ended 31 December 2022
	(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
			Thousand Euros
		Non-current			Current
2022	Amortised cost	Fair value	Total	Amortised cost	Fair value	Total	Hierarchy
Liabilities at amortised cost
Bonds and other marketable securities
Fixed rate (1)	2,556,641	-	2,556,641	12,554	-	12,554
Loans with Group companies
Variable rate Loans	4,408,547	-	4,408,547	23,172	-	23,172
Fixed rate Loans	2,010,624	-	2,010,624	17,148	-	17,148
Loans, tax effect	-	-	-	21,400	-	21,400
Loans and borrowings
Fixed rate	95,625	-	95,625	21,637	-	21,637
Variable rate	1,244,848	-	1,244,848	39,262	-	39,262
Finance lease payables	52	-	52	391	-	391
Other financial liabilities	576	-	576	942	-	942
Trade and other payables
Suppliers	-	-	-	58,812	-	58,812
Suppliers, Group companies	-	-	-	9,235	-	9,235
Other payables	-	-	-	11,541	-	11,541
Total	10,316,913	-	10,316,913	216,094	-	216,094

Liabilities at fair value with changes through equity
Derivatives	-	3,990	3,990	-	-	-	Level 2
Total	-	3,990	3,990	-	-	-
	10,316,913	3,990	10,320,903	216,094	-	216,094

This appendix forms an integral part of Note 19 to the annual accounts, in conjunction with which it should be read.

Details of Financial Liabilities by Category for the year ended 31 December 2021

						Appendix V 2 of 2
		GRIFOLS, S.A.
		Details of Financial Liabilities by Category for the year ended 31 December 2021
	(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
			Thousand Euros
2021	Amortised cost	Non-current Fair value	Total	Amortised cost	Current Fair value	Total

Liabilities at amortised cost Bonds and other marketable securities
Fixed rate (1)	2,553,548	-	2,553,548	110,638	-	110,638
Loans with Group companies
Variable rate Loans	4,605,868	-	4,605,868	17,424	-	17,424
Loans, tax effect	-	-	-	25,160	-	25,160
Loans and borrowings
Fixed rate	116,875	-	116,875	21,250	-	21,250
	1,246,330	-	1,246,330	20,830	-	20,830
Variable rate			430	710	-	710
Finance lease payables	430	-
Other financial liabilities	1,148	-	1,148	1,413	-	1,413
Trade and other payables		-			-
Suppliers	-	-	-	71,538	-	71,538
Suppliers, Group companies	-	-	-	15,624	-	15,624
Other payables	-	-	-	12,547	-	12,547

Classification of Financial Liabilities by Maturity for the year ended 31 December 2022

				Thousand Euros
				2022
	2023	2024	2025	2026	2027	Subsequent years	Less current portion	Total non-current
Loans
Bonds and other marketable securities	12,554	-	1,827,863	-	728,778	-	(12,554)	2,556,641
Loans and borrowings	60,899	32,447	31,387	31,345	1,234,669	10,625	(60,899)	1,340,473
Finance lease payables	391	25	24	2	1	-	(391)	52
Derivatives	-	3,990	-	-	-	-	-	3,990
Other financial liabilities	942	521	55	-	-	-	(942)	576
Group companies and associates	61,720	-	-	-	4,408,547	2,010,624	(61,720)	6,419,171
Trade and other payables
Suppliers	58,812	-	-	-	-	-	(58,812)	-
Suppliers, Group companies	9,235	-	-	-	-	-	(9,235)	-
Personnel	11,541	-	-	-	-	-	(11,541)	-
Total financial liabilities	216,094	36,983	1,859,329	31,347	6,371,995	2,021,249	(216,094)	10,320,903

Appendix VI 2 of 2

GRIFOLS, S.A.

Classification of Financial Liabilities by Maturity for the year ended 31 December 2021

								Appendix VI 2 of 2
			GRIFOLS, S.A.
			Classification of Financial Liabilities by Maturity for the year ended 31 December 2021

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

				Thousand Euros
				2021
	2022	2023	2024	2025	2026	Subsequent years	Less current portion	Total non-current


Loans
Bonds and other marketable securities	110,638	-	-	1,822,748	-	730,800	(110,638)	2,553,548
Loans and borrowings Finance lease payables	42,080 710	22,752 388	32,427 21	31,387 21	31,345 -	1,245,294 -	(42,080) (710)	1,363,205 430
Other financial liabilities	1,413	573	521	54	-	-	(1,413)	1,148
Group companies and associates	42,584	-	-	-	-	4,605,868	(42,584)	4,605,868
Trade and other payables
Suppliers	71,538	-	-	-	-	-	(71,538)	-
Suppliers, Group companies	15,624	-	-	-	-	-	(15,624)	-
Personnel	12,547	-	-	-	-	-	(12,547)	-

Main characteristics of payables for the year ended 31 December 2022

							Appendix VII 1 of 2
			GRIFOLS, S.A.
			Main characteristics of payables for the year ended 31 December 2022
					(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
						Thousand Euros
2022						Book value
Loan	Currency	Interest rate	Grant date	Maturity	Amount received	Current	Non-current
Group
		6.16% (Group senior debt
Cash pooling (Note 20)	EUR	interest rate + 1.10%)		2027	-	-	4,408,547
Group loan from Grifols Escrow Issuer, S.A. (Note 20)	EUR	3.875%	21/04/2022	15/10/2028	1,366,088	-	1,366,088
Group loan from Grifols Escrow Issuer, S.A. (Note 20)	USD	4.75%	21/04/2022	15/10/2028	644,536	-	644,536
					2,010,624	-	6,419,171
Unrelated parties:
Senior Unsecured Notes	EUR	3.20%	26/04/2017	26/04/2025	1,000,000	-	995,301
Senior Secured Notes	EUR	2.25%	15/11/2019	15/11/2027	770,000	-	728,778
Senior Secured Notes	EUR	1.63%	15/11/2019	15/02/2025	905,000	-	832,562
European Investment Bank	EUR	2.02%	22/12/2017	22/12/2027	85,000	10,625	42,500
European Investment Bank	EUR	2.15%	25/09/2018	25/09/2028	85,000	10,625	53,125
Tranche B	EUR	Euribor +2,25%	15/11/2019	15/11/2027	1,360,000	403	1,243,821
Bankinter	EUR	1,76% - 4,87%	21/11/2014	30/09/2024	10,000	1,067	1,027
Others, credit facilities	EUR			2023	-	13,887	-
Factoring, BBVA	EUR			2023	-	14,278	-
					4,215,000	50,885	3,897,114
					6,225,624	50,885	10,316,285

Main characteristics of payables for the year ended 31 December 2021

			GRIFOLS, S.A. Main characteristics of payables for the year ended 31 December 2021				Appendix VII 2 of 2
					(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
2021						Thousand Euros
						Book value
Loan	Currency	Interest rate	Grant date	Maturity	Amount received	Current	Non-current
Group
Cash pooling (note 20)	EUR	4.42% (Group senior debt interest rate + 1.10%)		2027	-	-	4,605,868
					-	-	4,605,868
Unrelated parties:
Senior Unsecured Notes	EUR	3.20%	26/04/2017	26/04/2025	1,000,000		993,284
Senior Secured Notes	EUR	2.25%	15/11/2019	15/11/2027	770,000	30,391	730,800
Senior Secured Notes	EUR	1.63%	15/11/2019	15/02/2025	905,000	67,144	829,464
European Investment Bank	EUR	2.02%	22/12/2017	22/12/2027	85,000	10,625	53,125
European Investment Bank	EUR	2.15%	25/09/2018	25/09/2028	85,000	10,625	63,750
Tranche B	EUR	Euribor +2,25%	15/11/2019	15/11/2027	1,360,000	(2,784)	1,244,244
Bankinter	EUR	1,82% - 1,76%	21/11/2014	30/09/2024	10,000	1,060	2,086
Other	EUR			2022	-	25	-
Factoring, BBVA	EUR			2022	-	22,057	-
					4,215,000	139,143	3,916,753

					4,215,000	139,143	8,522,621

Reconciliation between net income and expense for the year and the tax loss for the year ended 31 December 2022

				Thousand Euros
		Income statement			Income and expense recognised in equity
2022	Increases	Decreases	Net	Increases	Decreases	Net	Total
Income and expenses for the period			(266,296)			15,806	(250,490)
Income tax			(49,299)			(3,951)	(53,250)
Income tax, prior years			7,027				7,027
Other income tax			702				702
Losses before income tax			(307,866)			11,855	(296,011)
Permanent differences
Individual company	24,498	6,672	17,826	-	-	-	17,826
Tax consolidation adjustments	101,954	-	101,954	-	-	-	101,954
Temporary differences
Individual company
Originating in current year	603	7	596	-	-	-	596
Originating in prior years	488	5,568	(5,080)	-	-	-	(5,080)
Tax loss			(192,570)			11,855	(180,715)

Reconciliation between net income and expense for the year and the tax loss for the year ended 31 December 2021

							Appendix VIII 2 of 2
			GRIFOLS, S.A.
		Reconciliation between net income and expense for the year and the tax loss for the year ended 31 December 2021
	(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
				Thousand Euros
2021	Increases	Income statement Decreases	Net	Increases	Income and expense recognised in equity Decreases	Net	Total
Income and expenses for the period			(140,728)			12	(140,716)
Income tax			(41,803)			(3)	(41,806)
Income tax, prior years			6,739			-	6,739
Other income tax			576			-	576
Losses before income tax			(175,216)			9	(175,207)
Permanent differences							19,217
Individual company	24,688	5,471	19,217	-	-	-
Tax consolidation adjustments	23,510	-	23,510	-	-	-	23,510
Temporary differences
Individual company
Originating in current year	599	-	599	-	-	-	599
Originating in prior years	1,035	7,120	(6,085)	-	-	-	(6,085)

Details of income tax expense/(tax income) related to profit/(loss) for the year ended 31 December 2022

GRIFOLS, S.A.
Details of income tax expense/(tax income) related to profit/(loss) for the year ended 31 December 2022

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

	Thousand Euros
	Profit and loss	Total
Income and expenses for the period before tax	(307,866)	(307,866)

Tax at 25%	(76,967)	(76,967)

Non-taxable income Dividends, double taxation (exemption)	(1,668)	(1,668)
Non-deductible expenses
Donations	1,626	1,626
Deductions and credits for the current year	(2,277)	(2,277)
Provision of financial fixed assets	29,987	29,987
Other corporate tax expenses (other territories)	702	702
Adjustment of deductions in prior years	27	27
Non-deductible provisions	7,000	7,000

Details of income tax expense/(tax income) related to profit/(loss) for the year ended 31 December 2021

GRIFOLS, S.A.
Details of income tax expense/(tax income) related to profit/(loss)
for the year ended 31 December 2021
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
	Thousand Euros
	Profit and loss	Total
Income and expenses for the period before tax	(175,216)	(175,216)
Tax at 25%	(43,804)	(43,804)
Non-taxable income
Dividends, double taxation (exemption)	(1,224)	(1,224)

Non-deductible expenses	1,845	1,845
Donations
Deductions and credits for the current year	(2,587)	(2,587)
Prior years' adjustments	177	177
Provision of financial fixed assets	10,060	10,060
Other corporate tax expenses (other territories)	576	576
Adjustment of deductions in prior years	469	469

Related Party Balances for the year ended 31 December 2022

					Appendix X
	GRIFOLS, S.A.				1 of 2
	Related Party Balances for the year ended 31 December 2022
	(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)

2022	Group companies	Associates	Thousand Euros Directors	Other related parties	Total
Non-current investments in Group companies
Loans to companies	7,144,755	-	-	-	7,144,755
Deposits and guarantees	559	-	-	943	1,502
Total non-current assets	7,145,314	-	-	943	7,146,257
Trade and other receivables (note 14) Trade receivables from Group and associates Current investments in Group companies and associates	47,183	3,015	-	-	50,198
Loans to companies	123,033	-	-	-	123,033
Total current assets	170,216	3,015	-	-	173,231
Total assets	7,315,530	3,015	-	943	7,319,488
Non-current payables to Group companies	6,419,171	-	-	-	6,419,171
Total non-current liabilities	6,419,171	-	-	-	6,419,171
Current payables to Group companies and associates Trade and other payables (note 21)	61,720	-	-	-	61,720
Suppliers	-	-	-	4,572	4,572
Suppliers, Group companies and associates	9,235	-	-	--	9,235
Total current liabilities	70,955	-	-	4,572	75,527
Total liabilities	6,490,126	-	-	4,572	6,494,698

This appendix forms an integral part of Note 24 to the annual accounts, in conjunction with which it should be read.

Related Party Balances for the year ended 31 December 2021

					Appendix X 2 of 2
	GRIFOLS, S.A. Related Party Balances for the year ended 31 December 2021
	(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
			Thousand Euros
2021	Group companies	Associates	Directors	Other related parties	Total
Non-current investments in Group companies
Loans to companies Deposits and guarantees	6,977,554 559	- -	- -	- 749	6,977,554 1,308
Total non-current assets	6,978,113	-	-	749	6,978,862
Trade and other receivables (note 14)
Trade receivables – current	-	-	-	1,272	1,272
Trade receivables from Group and associates Current investments in Group companies and associates	67,925	3,720	-	-	71,645
Loans to companies	261,483	-	-	-	261,483
Total current assets	329,408	3,720	-	1,272	334,400
Total assets	7,307,521	3,720	-	2,021	7,313,262
Non-current payables to Group companies	4,605,868	-	-	-	4,605,868
Total non-current liabilities	4,605,868	-	-	-	4,605,868
Current payables to Group companies and associates Trade and other payables (note 21)	42,584	-	-	-	42,584
Suppliers	-	-	-	5,071	5,071
Suppliers, Group companies and associates	15,624	-	-	-	15,624
Total current liabilities	58,208	-	-	5,071	63,279
Total liabilities	4,664,076	-	-	5,071	4,669,147

Related Party Transactions for the year ended 31 December 2022

			Thousand Euros
2022	Group companies	Associates	Key management personnel	Directors	Other related parties	Total
Licencing income	30,953	-	-	-	-	30,953
Other services rendered	160,354	4,109	-	-	3,464	167,927
Finance income	282,305	-	-	-	-	282,305
Dividends	-	7,023	-	-	-	7,023
Total income	473,612	11,132	-	-	3,464	488,208
Operating lease expenses	4,087	-	-	-	6,300	10,387
Other services received	10,419	-	-	-	3,833	14,252
Remunerations	-	-	6,201	4,428	-	10,629
Financial expenses	293,853	-	-	-	-	293,853
Total expenses	308,359	-	6,201	4,428	10,133	329,121
Cost of assets acquired
Intangibles	466	-	-	-	-	466
Tangibles	773	-	-	-	-	773
Total investments	1,239	-	-	-	-	1,239

Related Party Transactions for the year ended 31 December 2021

			Thousand Euros
2021	Group companies	Associates	Key management personnel	Directors	Other related parties	Total
Licencing income	25,924	-	-	-	-	25,924
Other services rendered	141,512	3,705	-	-	7,326	152,543
Finance income	240,347	-	-	-	-	240,347
Dividends	-	5,758	-	-	-	5,758
Total income	407,783	9,463	-	-	7,326	424,572
Operating lease expenses	3,910	-	-	-	5,332	9,242
Other services received	15,053	-	-	-	3,963	19,016
Remunerations	-	-	7,737	4,416	-	12,153
Financial expenses	182,964	-	-	-	-	182,964
Total expenses	201,927	-	7,737	4,416	9,295	223,375
Cost of assets acquired
Intangibles	185	-	-	-	-	185
Total investments	185	-	-	-	-	185

Details of Revenues by Category of Activity and Geographical Market for the years ended 31 December 2022 and 2021

										Appendix XII
				GRIFOLS, S.A.
					Details of Revenues by Category of Activity and Geographical Market
					for the years ended 31 December 2022 and 2021


							(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails)
					Thousand Euros
	Domestic		Rest of European Union		United States		Rest of the world		Total
	2022	2021	2022	2021	2022	2021	2022	2021	2021	2020

Revenue from the rendering of services Licencing income	70,428 30,953	62,597 25,924	41,305 -	35,673 -	48,209 -	47,889 -	8,416 -	6,548 -	168,358 30,953	152,707 25,924
Dividends	-	-	-	-	-	-	7,023	5,758	7,023	5,758
Financial income	30	28	282,275	240,319	-	-	-	-	282,305	240,347

Directors' report

To the shareholders:

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 company 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 owned buildings 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.

2. 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 afore mentioned events.

3. Treasury stock

At 31 December 2022, the Company has treasury stock of Euros 162,220 thousand, as described in note 17 of the accompanying annual accounts. Transactions involving treasury stock in 2022 are described in note 17 of the accompanying annual accounts.

4. Research and development

The Company does not conduct any research and development activities.

5. Management of financial risks

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

6. Deferred payments to suppliers

The average payment period to the Company's suppliers for 2022 is 56 days, which is below the maximum period of 60 days established by the transitional arrangement set out in the Spanish Law 15/2010. Regarding the payments made after the regulatory deadline, the Company is studying the best practices to reduce the average number of days.

7. Financial instruments use

On 28 June 2022 the Company entered into a fixed-for-fixed currency swap agreement with due date 15 October 2024. The agreement set the exchange of currency flows EUR-USD under the following terms:
Grifols, S.A. received a loan in euros for an amount of Euros 194 million with an interest rate of 3.10%.
Grifols S.A. granted a loan in US dollars for an amount of US Dollars 205 million with an interest rate of 4.75%.
On 5 October 2021 the Company entered into a fixed-for-fixed currency swap agreement with some financial entities with due date 15 October 2024. The agreement set the exchange of currency flows EUR-USD under the following terms:
Grifols, S.A. received a loan in euros for an amount of Euros 173 million with an interest rate of 3.78%.
Grifols S.A. granted a loan in US dollars for an amount of US Dollars 200 million with an interest rate of 4.75%.

Directors' report

On 5 October 2021 the Company entered into two fixed-for-fixed currency swap agreements with due date 15 October 2024. The agreement set the exchange of currency flows EUR-USD under the following terms:
Grifols, S.A. received a loan in euros for an amount of Euros 259 million with an interest rate of 3.59%.
Grifols S.A. granted a loan in US dollars for an amount of US Dollars 300 million with an interest rate of 4.75%.

Regarding the financial derivative agreement dated on October 5, 2021, it was considered as a hedge instrument on 21 April 2022.

8. 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).

9. Annual Corporate Governance report and Annual Report on Remuneration of Directors

The Annual Corporate Governance Report and the Annual Report on Remuneration of Directors 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.

10. Subsequent events

At their meeting held on 23 February 2023, pursuant to the requirements of article 253.2 of 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 2022 to 31 December 2022. The annual accounts and Directors' report comprise the documents that precede this certification.

Thomas Glanzmann (signed) Executive Chairman Raimon Grifols Roura (signed) Chief Executive Officer Víctor Grifols Deu (signed) Chief Executive Officer Víctor Grifols Roura (signed) Board member Carina Szpilka Lázaro (signed) Board member Tomás Dagà Gelabert (signed) Board member Iñigo Sánchez-Asiaín Mardones (signed) Board member Enriqueta Felip Font (signed) Board member James Costos (signed) Board member Montserrat Muñoz Abellana (signed) Board member Susana González Rodríguez (signed) Board member Nuria Martin Barnés (signed) Secretary to the Board

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Grifols S.A.

1834_10-k-afs_2023-02-28_04ca956a-6646-4f57-955c-2f2d621dcd55.pdf

Balance Sheet 31 December 2022

(Expressed in Thousands of Euros)

Balance Sheet 31 December 2022

(Expressed in Thousands of Euros)

Statement of Profit and Loss for the year ended

(Expressed in Thousands of Euros)

Statements of Changes in Equity for the years ended 31 December 2022 and 2021

A) Statement of Comprehensive Income for the year ended 31 December 2022

Statements of Changes in Equity for the years ended 31 December 2022 and 2021

B) Statement of Changes in Equity for the year ended 31 December 2022

Statements of Changes in Equity for the years ended 31 December 2022 and 2021

B) Statement of Changes in Equity for the year ended 31 December 2021

Statements of Cash Flows for the years ended 31 December 2022

Notes to the Annual Accounts

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

(2) Basis of Presentation

Notes to the Annual Accounts

(3) Distribution of Profit

Notes to the Annual Accounts

(4) Significant Accounting Policies

(a) Foreign currency transactions, balances and cash flows

(b) Capitalised borrowing costs

Notes to the Annual Accounts

Notes to the Annual Accounts

(d) Property, plant and equipment

Notes to the Annual Accounts

Notes to the Annual Accounts

(h) Financial instruments

Notes to the Annual Accounts

Notes to the Annual Accounts

Impairment of financial assets valued at amortised cost

Notes to the Annual Accounts

Investments in Group companies

(x) Derecognition and modifications of financial liabilities

Notes to the Annual Accounts

20

GRIFOLS, S.A.

Notes to the Annual Accounts

(o) Provisions

(p) Revenue

(i) Revenue from the rendering of services

Notes to the Annual Accounts

Notes to the Annual Accounts

Notes to the Annual Accounts

(u) Transactions between Group companies

(5) Intangible Assets

Notes to the Annual Accounts

(a) Fully amortised assets

(6) Property, Plant and Equipment

(a) Capitalised borrowing costs

Notes to the Annual Accounts

(b) Fully depreciated assets

(c) Insurance

(7) Investment Property

26

GRIFOLS, S.A.

Notes to the Annual Accounts

(a) General

(b) Fully depreciated assets

(c) Income and expenses from investment property

Notes to the Annual Accounts

(8) Finance Leases - Lessee

Notes to the Annual Accounts

(9) Operating Leases - Lessee

(10) Assignment for Use of Premises and Installations

Notes to the Annual Accounts

(11) Risk Management Policy

Market risk

(i) Market risk

Notes to the Annual Accounts

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

During 2022 the following main changes to Company investments in equity instruments took place:

Notes to the Annual Accounts

During 2021 the following main changes to Company investments in equity instruments took place:

Notes to the Annual Accounts

Notes to the Annual Accounts

Notes to the Annual Accounts