ABOUT THIS REPORT

In its commitment to transparency and efficiency, Grifols has prepared a Consolidated Director’s Report based on the recommendations contained in the “International Integrated Reporting Framework” of the International Integrated Reporting Council (IIRC) and the “International Integrated Reporting Council (IIRC), the “Guidelines for Preparation of the Listed Company Management Reports” of the Spanish National Securities Market Commission. This Consolidated Director’s Report presents Group’s financial and non-financial information which complies with the provisions of current regulations1.

This report also includes the Statement of Non-Financial Information (see Annex I “Index of context required by Law 11/2018, of December 28, regarding non-financial information and diversity”) also presents the impact of its business on environmental and social issues, as well as on workforce, on human rights and the fight against corruption and bribery, including any measures that may have been adopted to support the principle of equality and opportunity among men and women, non-discrimination and inclusion of the disabled and universal accessibility.

This report has been prepared in accordance with the GRI Standards: Core option. Annex II “GRI content Index” contains a list of the GRI standards, with references to the standards that are included throughout the report, together with the additional information required by Law 11/2018.

In addition, this report shows Grifols’ commitment in relation to its contribution to the Sustainable Development Goals. Annex III “Index of Grifols’ contribution to the SDGs” contains the list of the SDGs to which it contributes, as well as a detail of the main contributions made in 2019.

The financial information presented in this report, unless expressly stated to the contrary, was prepared in accordance with the Group’s reporting model and should be read jointly with the 2019 Consolidated Financial Statements, which have been subject to an external audit. Some of the financial indicators and ratios are classified as Alternative Performance Metrics (APMs) in accordance with European Securities Markets Authority (ESMA) guidelines. Annex IV, “Non-GAAP Measures Reconciliation”, includes the reconciliation between the adjusted figures and those corresponding to IFRS-EU financial information.

1. Among others, the Spanish Code of Commerce, the Consolidated Text of the Spanish Companies Act and Law 11/2018 (28 December), which amends the Code of Commerce, the Spanish Companies Act and the Audit Act with respect to non-financial and diversity information, and transposes Directive 2014/95/ EU regarding the disclosure of non-financial information into Spanish Law.

BASES FOR THE PREPARATION OF THE NON-FINANCIAL INFORMATION STATEMENT

In compliance with Law 11/2018, of December 28, regarding non-financial information and diversity, Grifols includes its Non-Financial Information Statement (EINF, for its initials in Spanish) in the Consolidated Director’s Report for the period January 1 to December 31, 2019 as a separate document from the consolidated annual accounts. This report is public and can be consulted on the corporate website www.grifols.com.

Grifols performs an annual materiality analysis to identify the most relevant non-financial risks and issues which could impact its stakeholders. As detailed in Annex I “Index of context required by Law 11/2018, of December 28, regarding non-financial information and diversity”, the EINF has been prepared taking into account the standards of the Global Reporting Initiative (GRI). For this, Grifols has defined its content taking into account the inclusion of stakeholders, the context of sustainability and the principles of materiality and completeness.

SCOPE OF THIS REPORT

This report covers the period from January 1 to December 31, 2019, corresponding with Grifols’ fiscal year. In sections with historical data, figures appear from the last three years (2017-2019), classified by Grifols’ four main divisions (Bioscience, Hospital, Diagnostics and Bio Supplies) and regions.

For the purposes of this report, Grifols S.A. and its subsidiaries will be considered “Grifols”. The information contained herein includes all subsidiaries. A list of Grifols subsidiaries is available in Appendix I in the Consolidated Financial Statements.

Financial information included in this report comes from the Consolidated Financial Statements of the fiscal year ending on December 31, 2019.

The report addresses the entirety of Grifols’ operations, ranging from procurement (including plasma collection) and manufacturing processes to commercial subsidiaries, taking into consideration the following points:

  • Due to the complexity and global distribution of Grifols’ business operations, the scope of some of the non-financial indicators may differ from the established standard. In cases in which reported indicators have exceptions to the scope, these have been adequately identified.
  • The indicators contained herein were compiled by Grifols. The procedure used to obtain information ensures methodological rigor and historical comparisons.

Chapter 8: Environment and Climate Change
– The data provided by Grifols in this section represents both its production and commercial activity, except for the commercial subsidiaries with less than 10 employees.
– Since most of Grifols’ manufacturing facilities are based in the U.S. and Spain, the environmental information included in this section is classified by division and region: U.S., Spain and Rest of the World (ROW).

Chapter 6: Our people
– Grifols has included figures from the past two years and classified them by gender (male, female), age and region (North America, Europe and ROW) in all cases where historical figures are available. North America includes the U.S. and Canada, while Europe includes the Czech Republic, France, Germany, Ireland, Italy, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
–The calculation of the accident rates includes the most significant facilities, excluding investees dedicated to research initiatives.

PRINCIPLES

This report has been prepared in accordance with the GRI Standards: Core option.

Grifols defined the content of this report using GRI standards:

Stakeholder inclusiveness: Grifols maintains an ongoing dialogue with its stakeholders. The group is able to effectively address their expectations and interests by anticipating their needs.

Context of sustainability: Grifols aspire to contribute to economic, environmental and social progress on local, regional and global levels. Its 2019 performance is contextualized within its countries of operation.

Materiality: This report features the corporate issues that had the greatest economic, environmental and social impact, as well as those that could significantly shape stakeholder decisions and opinions.

Completeness: The topics highlighted in this report adequately reflect the group’s most significant social, economic and environmental impacts, and allow stakeholders to assess their effectiveness throughout the 2019 fiscal year.

STAKEHOLDERS RELATIONS

Deeply aware of the vital role that stakeholders play in its success, Grifols has several communication channels in place in order to ensure an open and fluid dialogue and stay abreast of their needs and expectations. This report serves as yet another platform to offer information to stakeholders in a clear, concise and ethical manner.

Grifols uses a variety of communication channels to interact with its stakeholder groups, including its corporate website. The following table resumes the main platform:

MATERIALITY

On an annual basis, Grifols conducts a materiality study in order to identify the most relevant matters for its stakeholders, as well as those that have the greatest impact on its business.

This study allows the company to know the importance of matters related to the business strategy, identify the expectations and needs of the interested parties and specify the planning for accountability. It combines the internal vision of the different businesses and the external vision of the stakeholders, applying the “Reporting Principles for defining report content” of Global Reporting Initiative (GRI) in accordance to the GRI 101: Foundation Standard.

TOPICS IDENTIFICATION

The Materiality Analysis 2019 implies an update of the topics identified in the previous exercise, using information sources of reference for Grifols. Among them, to be noted:

  • the sectoral materiality of Sustainability Accounting Standards Board (SASB) for the “Biotechnology and Pharmaceuticals” and “Medical Equipment and Supplies” industries,
  • the issues highlighted as relevant by RobecoSAM in the “Biotechnology”, “Health Care Equipment & Supplies” and “Pharmaceuticals” sectors,
  • and the latest Global Risk Report 2019 report published by the World Economic Forum.

All these sources allow the identification of issues relevant to Grifols’ strategy and its stakeholders.

VALIDATION

The resulting matrix has been validated by those responsible for sustainability of Grifols, contrasting the consistency of the valuations granted in the previous phase.

TOPICS PRIORITIZATION

Once the relevant issues have been identified, a prioritization has been elaborated both from the stakeholder’s external point of view as from Grifols’ internal vision.

To carry out the external prioritization of the issues, it should be noted that the following have been carried out: a study of the main competitors, an analysis of relevant issues for the stakeholders identified in the press during the last year and the evaluation criteria of the Dow Jones Sustainability Index in the “Biotechnology” sector.

In order to carry out the internal prioritization of the issues, in addition to taking into account the relevance in the Grifols Strategic Plan, the document 20-F has been analyzed and interviews with those responsible for the different areas and businesses involved in the scope of sustainability have been conducted.

Once each of the consulted inputs was evaluated and weighted, the following materiality matrix was obtained:

CONTENT DEFINITION

Below are the topics included in each material issue, in addition to the linked SASB Standards. The “GRI Content Index” section of this report shows the GRI and SASB Standards associated with each issue, its coverage according to the GRI Standard 103-1 and the location of the response for each of them.

INDEPENDENT REVIEW REPORT

ANNEX I “INDEX OF CONTENTS REQUIRED BY LAW 11/2018, OF DECEMBER 28, REGARDING NON-FINANCIAL INFORMATION AND DIVERSITY

The selected GRI standards below refer to those published in 2016, except those that have undergone updates and in which case the year of publication is indicated.

ANNEX II: GRI CONTENT INDEX

For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references for Disclosures 102-40 to 102-49 align with appropriate sections in the body of the report. The service was performed on the English language version of the report.

GRI Standard/SASB Standard GRI Content/SASB Accounting Metric Page / Direct answer Identified omission(s) External assurance SDGs
GRI 101: Foundation 2016
General Disclosures
GRI 102: General Disclosures 2016 Organizational Profile
102-1 Name of the organization Grifols S.A. Yes, pages 185-186
102-2 Activities, brands, products and services 22 Yes, pages 185-186
102-3 Location of headquarters 29 Yes, pages 185-186
102-4 Location of operations 27-29 Yes, pages 185-186
102-5 Ownership and legal form Details available in the Annual Corporate Governance Report https://www.grifols.com/ en/web/international/investor-relations /annual-corporate-governance-report Yes, pages 185-186
102-6 Markets served 22, 27-29 Yes, pages 185-186
102-7 Scale of the organization 8-9, 35 Yes, pages 185-186
102-8 Information on employees and other workers 112, 128 Yes, pages 185-186 8
102-9 Supply chain 76, 77, 82, 83 Yes, pages 185-186
102-10 Significant changes to the organization and its supply chain 10, 11, 26, 27 Yes, pages 185-186
102-11 Precautionary principle or approach 152 Yes, pages 185-186
102-12 External initiatives Grifols has not adopted any externally-developed economic,
environmental or social projects or principles
Yes, pages 185-186
102-13 Membership of associations 146 Yes, pages 185-186
Strategy
102-14 Statement from senior decision-maker 5-7 Yes, pages 185-186
Ethics and Integrity
102-16 Values, principles, standards and norms of behavior 16, 62-64 Yes, pages 185-186 16
102-17 Mechanisms for advice and concerns about ethics 62 Yes, pages 185-186 16
Governance
102-18 Governance structure 56-60 Yes, pages 185-186
Stakeholder Engagement
102-40 List of stakeholder groups 182 Yes, pages 185-186
102-41 Collective bargaining agreements The employees of some of our subsidiaries in Spain, Germany, Italy,
France, Argentina and Brazil are covered by collective bargaining
agreements. In 2019, 4.539 employees, representing 19% of group
employees, were covered by these agreements
Yes, pages 185-186 8
102-42 Identifying and selecting stakeholders 181-182 Yes, pages 185-186
102-43 Approach to stakeholder engagement 180-181 Yes, pages 185-186
102-44 Key topics and concerns raised 183-184 Yes, pages 185-186
Reporting practice
102-45 Entities included in the consolidated financial statements A list of Grifols subsidiaries is disclosed in the Annex I of the Consolidated
Financial Statements on the following link:
https://www.grifols.com/en/annual-accounts
Yes, pages 185-186
102-46 Defining report content and topic boundaries 180, 181, 183, 184 Yes, pages 185-186
102-47 List of material topics 183, 184 Yes, pages 185-186
102-48 Restatements of information No significant changes have occurred requiring the restatement of information.
Information included with a different organizational or time
scope to the one used in 2018, has been explained and disclosed.
Yes, pages 185-186
102-49 Changes in reporting 180
Apart from the cotents definition according to GRI 101, the non-financial information according to the Law 11/2018 has been included this year.
Yes, pages 185-186
102-50 Reporting period 180 Yes, pages 185-186
102-51 Date of most recent report 2018 Corporate Responsibility Report was published on May 2019. Yes, pages 185-186
102-52 Reporting cycle Annual Yes, pages 185-186
102-53 Contact point for questions regarding the report GRIFOLS S.A. - Investor Relations
Avinguda de la Generalitat, 152
Parc empresarial Can Sant Joan
08174 Sant Cugat del Vallès, Barcelona - España

Contact information:
Tel. (+34) 935 710 221
Fax: (+34)34 935 712 201
inversores@grifols.com
Yes, pages 185-186
102-54 Claims of reporting in accordance with the GRI Standards 180
This report has been prepared in accordance with the GRI Standards:
Core option
Yes, pages 185-186
102-55 GRI content index 192 Yes, pages 185-186
102-56 External assurance 185-186 Yes, pages 185-186
Material topics
Innovation
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 9
103-2 The management approach and its components 88-93 Yes, pages 185-186 9
103-3 Evaluation of the management approach 94-107 Yes, pages 185-186 9
Safety and Quality in the Supply Chain (GRI 416: Customer Health and Safety 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization is linked to the impact through its business relations.
Yes, pages 185-186
103-2 The management approach and its components 72-75 Yes, pages 185-186
103-3 Evaluation of the management approach 84-85 Yes, pages 185-186
GRI 416: Customer Health and Safety 2016 416-1 Assessment of the health and safety impacts of product and service categories 84-85 Yes, pages 185-186 3
416-2 Incidents of non-compliance concerning the health and safety impacts of products and services 72 Yes, pages 185-186 3
SASB HC-BP Counterfeit Drugs 260a.1 HC-BP-260a.1. Description of methods and technologies used to maintain traceability of products throughout the supply chain and prevent counterfeiting 77 No
SASB HC-BP PDrug Safety 250a.3 Number of recalls issued, total units recalled 75 No
Plasma and plasma donnors
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186
103-2 The management approach and its components 76, 80-81, 138-139 Yes, pages 185-186
103-3 Evaluation of the management approach 76, 80-81, 138-139 Yes, pages 185-186
Business Ethics (GRI 205: Anti-corruption 2016, GRI 206: Anti-competitive Behavior 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 16
103-2 The management approach and its components 16, 17, 61-66 Yes, pages 185-186 16
103-3 Evaluation of the management approach 16, 17, 61-66 Yes, pages 185-186 16
GRI 205: Anti-corruption 2016 205-1 Operations assessed for risks related to corruption 63-64 Yes, pages 185-186 16
205-2 Communication and training about anti-corruption policies and procedures 64 Breakdown by category
is not available
for publication in
this report. Specific
measures are being
taken in the collection
of information and the
process to treat the
data to be able to give
this detail in the next
five years
Yes, pages 185-186 16
205-3 Confirmed incidents of corruption and actions taken 63 Yes, pages 185-186 16
GRI 206: Anti-competitive Behavior 2016 206-1 Legal actions for anti-competitive behavior, anti-trust and monopoly practices Detailed content available on page 103 of Grifols document 20F, via
the following link:
https://www.sec.gov/ Archives/edgar/data/ 1438569/000110465919023085/ 0001104659-19-023085-index.htm
Yes, pages 185-186 16
SASB HC-BP Ethical Marketing 270a.2 Description of code of ethics governing promotion of off-label use of products 75 No
SASB HC-BP Business Ethics 510a.2 Description of code of ethics governing interactions with health care professionals 61, 62, 65 No
Attraction and retention of talent (GRI 401: Employment 2016, GRI 402: Labor/Management Relations 2016, GRI 404: Training and education 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 8, 5
103-2 The management approach and its components 110,111, 117, 118 Yes, pages 185-186 8, 5
103-3 Evaluation of the management approach 119 Yes, pages 185-186 8, 5
GRI 401: Employment 2016 401-1 New employee hires and employee turnover 128-130
New hires by region:
USA: 6.873 employees, 39% over total
Europe 1.416 employees, 23% over total
Rest of the world: 90 employees, 18% over total

New hires by age group:
<30: 4.903 employese, 65% over total
30-50: 3.000 employees, 5% over total
>50: 476 employees, 11% over total

Total number of terminations and turnover rate by region:
USA: 6.879 employees, turnover 39%
Europe: 833 employees, turnover 14%
Rest of the world: 56 employees, turnover 11%

Total number of terminations and turnover rate by age group:
<30: 4.036 employees, turnover 53%
30-50: 3.103 employees, turnover 26%
>50: 629 employees, turnover15%
Yes, pages 185-186 8, 5
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees All employees at the main locations, except from the U.S., are eligible to all the work benefits available to their work category regardless of their employment type (full time or part time ). In the U.S., all regular full-time employees working an average of 30 hours or more per week, are eligible for several insurance policies (Basic Life Insurance, Accidental Death & Dismemberment, Core Short-Term Disability, Long-Term Disability and Business Travel accident, medical and drug coverage insurance, dental and vision insurance). They also have access to a Health Reimbursement Account (for EHP participants only), and participate in a Employee Assistance Program, LiveWell Wellness Incentive Program, , 401k match, Tuition Reimbursement, PTO Pay & Holiday Pay as well as Adoption Assistance. Part-time employees are eligible to 401k benefits, Business travel accident in insurance and Employee Assistance Program Yes, pages 185-186 5
401-3 Parental leave 100% of Grifols employees are entitled to maternity / paternity leave as long as it is contemplated by state, federal, regional or local laws; in 2019, 424 women and 156 men have taken parental leave in Spain and the U.S.. During the reporting period, 443 people (295 women and 148 men) have returned to work after their parental leave, which represents a 92% return to work rate (89% in women, 99% in men). Yes, pages 185-186 8, 5
GRI 402: Labor/Management Relations 2016 402-1 Minimum notice periods regarding operational changes Significant operational changes in the organization that may substantially
affect employees, are communicated in advance according to the
requirements of the applicable law and the collective agreements.
Yes, pages 185-186 8
GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee 119
Average training hours by gender: Women 124h, Men 97h
Average training hours per employee are based on the accumulated average number of employees (FTE average).
Yes, pages 185-186 4, 5
404-2 Programs for upgrading employee skills and transition assistance programs 120-121 Yes, pages 185-186 4
404-3 Percentage of employees receiving regular performance and career development reviews During 2019, 90,5% of all employees have participated in the performance and development review   Yes, pages 185-186 4, 5
SASB HC-BP Employee Recruitment, Development & Retention 330a.1 Discussion of talent recruitment and retention efforts for scientists and research and development personnel 89, 91, 117, No
Transparency
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 16
103-2 The management approach and its components 65-67, 92-93 Yes, pages 185-186 16
103-3 Evaluation of the management approach 65-67, 92-93 Yes, pages 185-186 16
Risks and compliance
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 16
103-2 The management approach and its components 62, 68, 69 Yes, pages 185-186 16
103-3 Evaluation of the management approach 62, 68, 69 Yes, pages 185-186 16
Compromise with the patient
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 3
103-2 The management approach and its components 135-137 Yes, pages 185-186 3
103-3 Evaluation of the management approach 135-137 Yes, pages 185-186 3
SASB HC-BP Safety of Clinical Trial Participants 210a.1 Discussion, by world region, of management process for ensuring quality and patient safety during clinical trials 92 No
SASB HC-BP Access to Medicines 240a.1 Description of actions and initiatives to promote access to health care products for priority diseases and in priority countries as defined by the Access to Medicine Index 135, 137 No
Business Strategy and Value Creation (GRI 201: Economic Performance 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 8, 9
103-2 The management approach and its components 34-42 Yes, pages 185-186 8, 9
103-3 Evaluation of the management approach 34-42 Yes, pages 185-186 8, 9
GRI 201: Economic Performance 2016 201-1 Direct economic value generated and distributed 35, 42 Yes, pages 185-186 8, 9
Health, safety and occupational well-being (GRI 403: Occupational Health and Safety 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 8
103-2 The management approach and its components 125-127 Yes, pages 185-186 8
103-3 Evaluation of the management approach 126 Yes, pages 185-186 8
GRI 403: Occupational Health and Safety 2016 403-1 Workers representation in formal joint management–worker health and safety committees In Spain, Chile and Germany, where there are legally established work committees, Grifols’ has occupational health and safety risks prevention workers represented at the committees. In these countries, there are regular communications through OHS meetings.

In 2019, 72% of employees in Spain were represented by formal joint
management-worker health and safety committees, while in Chile and Germany 100% of employees were represented. There are no formal committees at the other subsidiaries but Grifols undertakes surveys and communicates regularly with its workforce. Employees create committees were all can participate or send suggestions. Each subsidiary defines the frequency of meetings and sets the plans, actions or
specific measures for these committees
  Yes, pages 185-186 8
403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities 126
Total hours of absenteesm in Spain by gender, which includes the
following typologies: Sickness; sickness hospitalisation; accident in the
workplace; maternity/paternity leave; paid leave permit; and not-paid
leave permit
Women: 877.793 hours.
Men: 349.166 hours
Scope is Spain and USA, being the countries where this topic is considered as material. Yes, pages 185-186 8, 3
403-3 Workers with high incidence or high risk of diseases related to their occupation 125 Yes, pages 185-186 8, 3
403-4 Health and safety topics covered in formal agreements with trade unions 125 Yes, pages 185-186 8, 3
Data Protection (GRI 418: Customer Privacy 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 16
103-2 The management approach and its components 67 Yes, pages 185-186 16
103-3 Evaluation of the management approach 67 Yes, pages 185-186 16
GRI 418: Customer Privacy 2016 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data There has not been any claim regarding privacy violations and client’s
data loss
Yes, pages 185-186 16
Climate Strategy (GRI 201: Economic Performance 2016; GRI 305: Emissions 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 13
103-2 The management approach and its components 164-168 Yes, pages 185-186 13
103-3 Evaluation of the management approach 164-168, 173 Yes, pages 185-186 13
GRI 201: Economic Performance 2016 201-2 Financial implications and other risks and opportunities due to climate change 164-166 Yes, pages 185-186 13
GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions 173 Yes, pages 185-186 13
305-2 Energy indirect (Scope 2) GHG emissions 173 Yes, pages 185-186 13
305-3 Other indirect (Scope 3) GHG emissions 173 Yes, pages 185-186 13
305-4 GHG emissions intensity 174 Yes, pages 185-186 13
305-6 Emissions of ozone-depleting substances (ODS) 174 Yes, pages 185-186 13
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant aire emissions 174 Yes, pages 185-186 13
Eco-efficiency and Circular Economy (GRI 301: Materials 2016, GRI 302: Energy 2016, GRI 303: Water and Effluents 2018, GRI 306: Effluents and Waste 2016, GRI 307: Environmental Compliance 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 12
103-2 The management approach and its components 152-155 Yes, pages 185-186 12
103-3 Evaluation of the management approach 160 Yes, pages 185-186 12
GRI 301: Materials 2016 301-1 Materials used by weight or volume 171, 176, 177 Due to the nature of the
materials used by Grifols,
disclosure by renewable
and not renewable is not
applicable
Yes, pages 185-186 12
GRI 302: Energy 2016 302-1 Energy consumption within the organization 172, 175, 176 Yes, pages 185-186 12, 7
302-3 Energy intensity 175, 176
All rates are reported using energy consumption
within the organization
Yes, pages 185-186 12, 7
302-4 Reduction of energy consumption 172, 175, 176 Yes, pages 185-186 12, 7
GRI 303: Water and Effluents 2018 303-1 Interactions with water as a shared resource 169 Yes, pages 185-186 12, 6
303-2 Management of water discharge-related impacts 169 Yes, pages 185-186 12, 6
303-3 Water withdrawal 174, 175 Yes, pages 185-186 12, 6
GRI 306: Effluents and Waste 2016 306-1 Water discharge by quality and destination 175 Yes, pages 185-186 12, 14
306-2 Waste by type and disposal method 172, 177 Yes, pages 185-186 12
GRI 307: Environmental Compliance 2016 307-1 Non-compliance with environmental laws and regulations 155 Yes, pages 185-186 16
Compromise with the Community (GRI 203: Indirect Economic Impacts 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 11, 9, 10
103-2 The management approach and its components 142-146 Yes, pages 185-186 11, 9, 10
103-3 Evaluation of the management approach 142-146 Yes, pages 185-186 11, 9, 10
GRI 203: Indirect Economic Impacts 2016 203-1 Infrastructure investments and services supported 9, 139 Yes, pages 185-186 11, 9, 10
Diversity and Inclusion (GRI 405: Diversity and Equal Opportunity 2016, GRI 406: Non-discrimination 2016)
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its Boundary 184
Coverage: Inside and outside the organization. The organization contributes directly to the impact
Yes, pages 185-186 8, 5
103-2 The management approach and its components 113-116 Yes, pages 185-186 8, 5
103-3 Evaluation of the management approach 113-116 Yes, pages 185-186 8, 5
GRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees 114, 128, 129 Yes, pages 185-186 8, 5
GRI 406: Non-discrimination 2016 406-1 Incidents of discrimination and corrective actions taken 116 Yes, pages 185-186 8, 16, 5

ANNEX III: INDEX OF GRIFOLS’ CONTRIBUTION TO THE SDGs

ANNEX IV: NON-GAAP MEASURES RECONCILIATION

ANNEX V: GRIFOLS’ SOCIO-ECONOMIC IMPACT

Grifols has determined the socio-economic impact of its activity on the economy of the United States, Spain, Germany and Ireland in terms of wealth generation and job creation during 2019.

To this end, the input-output analysis is used, a method in which with known inputs (expenditure on suppliers of goods and services, R+D investment, CAPEX, expenditure made by employees based on the wages received, main taxes, dividends to individuals and legal entities and the interest paid to banks) it is possible to obtain the outputs associated with the activities carried out by Grifols.

*The Input – Output framework is an accounting statistical instrument in which all the production and distribution operations that take place in an economy in a given period of time are represented. This allows to observe the flows of the different intersectoral transactions in a specific economy for a reference year. This model allows us to observe a series of effects on the production of the system, linked to the final exogenous demand of the system, which are broken down between the direct or initial, indirect and total effects, which represent the sum of the previous ones.

ANNEX VI – METHODOLOGY AND CALCULATION OF THE ADJUSTED AND UNADJUSTED WAGE GAP

In 2018, calculations were limited to the unadjusted salary gap, defined as the percentage differential between the total gross salary per hour worked by men and women. The same calculation was made in 2019, with the exclusion of the following groups:

  • Members of the Board of Directors
  • Collaborators based in Liberia
  • Partial retirees
  • Grifols Foundations
  • Aigües de Vilajuïga, MedKeeper and IBBI, since these companies are still not 100% integrated into Grifols’ systems and policy framework.

In total, the database used to calculate the unadjusted salary gap includes 15,878 employees in the U.S. and 4,106 employees in Spain.

In 2019, the adjusted wage gap was also computed. The methodology consisted of the use of econometric models that compare the annual salaries at 100% of the working hours of men and women, isolating the effects generated by any and all possible differences identified between the two (socioeconomic factors, job characteristics, etc.).

In other words, the adjusted salary gap measures the difference in retribution for the same job or one of equal value. It is calculated as follows:

For the econometric calculation of the adjusted wage gap, the following variables were taken into account: age, seniority, educational level, maternity / paternity leave, professional category, contract type and work schedule. In addition, for the U.S., the type of activity (plasma/non-plasma) was also taken into account. In order to attain an accurate figure, the calculation excluded workers for whom up-to-date information was lacking on any of the variables.

In total, the database used to calculate the adjusted wage gap in the United States included 11,572 employees and 3,889 in Spain.

Those remunerations that are paid based on seniority, shifts, personal circumstances or any other factors that could distort the results have not been included. The results for Spain and the U.S. are shown separately, in order to avoid applying a currency exchange rate that could distort the results. U.S. results shown are separated by plasma centers and other activity (non-plasma), since they are two very different operations.

ANNEX VII: GLOSSARY AND ABBREVIATIONS

  • AATD/Alpha-1 antitrypsin deficiency: Inherited disease characterized by low levels of, or no,alpha-1 antitrypsin (AAT) in the blood. This protein made in the liver, reaches other organs (such as the lungs), after being released into the blood stream, enabling its normal function.
  • Albumin: The most abundant protein found in plasma (approximately 60% of human plasma). Produced in the liver, it is important in regulating blood volume by maintaining the oncotic pressure of the blood compartment.
  • Alzheimer’s disease: This is the most common form of dementia. This incurable, degenerative,and terminal disease was first described by German psychiatrist and neuropathologist Alois Alzheimer in 1906 and was named after him.
  • Babesiosis/Babesia virus: disease caused by microscopic parasites that infect red blood cells.
  • Beta-amyloid: Protein strongly implicated in Alzheimer’s diseases. Beta-amyloid is the maincomponent of certain deposits found in the brains of patients of Alzheimer’s disease.
  • CIDP: Chronic Inflammatory Demyelinating Polyneuropathy. Neurological disorder which causes gradual weakness, numbness, pain in arms and legs and difficulty in walking.
  • Cirrhosis: Medical condition which is a result of advanced liver disease. It is characterized by thereplacement of liver tissue by fibrosis (scar tissue) and regenerative nodules (lumps that occurdue to attempted repair of damaged tissue).
  • ELISA: Enzyme-linked immunosorbent assay.
  • EMA: European Medicines Agency.
  • Factor VIII or FVIII: This is an essential blood clotting factor also known as anti-hemophilic factor(AHF). In humans, Factor VIII is encoded by the F8 gene. Defects in this gene results in hemophiliaA, a sex-linked disease that occurs predominantly in males. FVIII concentrated from donated blood plasma, or alternatively recombinant FVIII, or rFVIII can be given to hemophiliacs to restore hemostasis.
  • Factor IX: This is an important blood clotting factor also known as Christmas factor or plasmathromboplastin component (PTC). It is one of the serine proteases of the coagulation system andbelongs to the peptidase family S1. In humans, a deficiency of this protein causes hemophilia B,a sex-linked disease that occurs predominantly in males.
  • FDA: Food and Drug Administration. U.S.Health Authority.
  • Fibrin sealant: Surgical adhesive material derived from plasma.
  • Fractionation: Process of separating plasma into its component parts, such as albumin, immunoglobulin, alpha-1 antitrypsin and coagulation factors.
  • GPO: Group Purchasing Organization.
  • HBV: Hepatitis B Virus.
  • HCV: Hepatitis C Virus.
  • Hematology: The study of blood, blood-forming organs, and blood diseases.
  • Hemoderivative: proteins obtained by fractionation of human blood plasma. See plasma derived proteins.
  • Hemophilia: Genetic deficiency characterized by the lack of one of the clotting factors. It has two main variants:.
    - Hemophilia A: genetic deficiency of coagulation Factor VIII, which causes increased bleeding (usually affects males).
    - Hemofilia B: genetic deficiency of coagulation Factor IX.
  • Hemotherapy: Treatment of a disease using blood, blood components and its derivatives.
  • HIV: Human Immunodeficiency Virus.
  • IA: Immunoassays. These are systems available in several formats that may be used to detectantibodies, recombinant proteins or a combination of the two.
  • Immunoglobulins: also known as antibodies, are proteins derived from plasma. They control de body’s immune response. They have multiple indications and some of their main uses are to treat: (i) immune deficiencies, (ii) inflammatory and autoimmune diseases and (iii) acute infections. IVIG is an immunoglobulin administered intravenously that contains IgG (immunoglobulin (antibody) G).
  • Intravenous: administration of drugs or fluids directly into a vein.
  • Immunohematology: A branch of hematology related to the study of recombinant proteins and antibodiesand their effects on blood and the relationships between blood disorders and the immunesystem. Also referred to as Transfusional Medicine - blood bank, its main activities include blood typing, compatibility tests and crossmatching and antibody identification.
  • Immunology: This is a branch of biomedical science that covers the study of all aspectsof the immune system in organisms. It deals with the physiological functioning of the immunesystem in states of both health and disease; malfunctions (autoimmune diseases, hypersensitivities, immune deficiency, transplant rejection) and the physical, chemical and physiological characteristics of the components of the immune system in vitro, in situ, and in vivo.
  • IVD: In vitro Diagnostic.
  • IV solutions/Intravenous solution: Medicine or homogeneous mixture of a substance in liquid,enabling it to be infused into the circulatory system through a needle.
  • Molecular Diagnostics: Discipline that studies genomic (DNA) and proteomic (proteins)expression patterns and uses the information to distinguish between normal, precancerous, andcancerous tissues at the molecular level.
  • NAT: Nucleic Acid Amplification Testing.
  • pdFVIII: Plasma-derived Factor VIII.
  • Plasma: Liquid part of the blood, consisting of a mix of a large number of proteins in solution.
  • Plasma-derived proteins: Purified plasma proteins with therapeutic properties that areobtained through the fractionation of human plasma. Albumin, immunoglobulins, factor VIIIand alpha-1 antitrypsin are the main plasma proteins.
  • Plasmapheresis: Plasmapheresis is a technique which separates plasma from other bloodcomponents, such as red blood cells, platelets and other cells. These unused blood componentsare suspended in saline solution and immediately re-injected back into the donor.

Because the donor is only providing plasma and not whole blood, the recovery process is faster and better tolerated, and the donor is able to make donations more frequently.

Plasmapheresis was developed by Jose Antonio Grifols Lucas in the year 1951. It is the only procedure that is capable of obtaining sufficient quantities of plasma to cover the manufacturing needs for the different plasma protein therapies.

  • Prolastin®/Prolastin® -C: This is a concentrated form of alpha-1 antitrypsin (AAT), derived from human plasma and approved only for chronic, or ongoing, replacement therapy in people with genetic AAT deficiency. Given as prescribed, Prolastin raises the levels of AAT in the blood and lungs. Raising the AAT level may help reduce the damage to the lungs caused by destructive enzymes.
  • rFVIII: Recombinant Factor VIII is the anti-hemophilic factor A, obtained using recombinant DNAtechnology. With this technology, pure factor is synthesized in the laboratory instead of beingextracted from blood plasma.
  • Rh (Rhesus) blood group system: Most important blood group system after ABO. The Rh bloodgroup system consists of 50 defined blood-group recombinant proteins, among which the five recombinant proteins D,C, c, E and e are the most important.

The commonly used terms Rh factor, Rh positive and Rhnegative refer to the D antigen only.

  • ROW: Rest of the World
  • SubQ: Sub-cutaneous.
  • Transfusion medicine: Branch of medicine that encompasses among others, immunohematology, blood and plasma screening and blood typing.
  • WNV: West Nile Virus. Virus that is transmitted by mosquitoes. Humans are mainly infectedthrough mosquito bites, but infection can occur through organ transplantation and blood.
  • Von Willebrand Disease (vWD): This is the most common hereditary coagulation abnormalitydescribed in humans, although it can also be acquired as a result of other medical conditions. Itarises from a qualitative or quantitative deficiency of von Willebrand factor (vWF), a multimericprotein that is required for platelet adhesion.
  • Zika virus: infectious disease spread by the bite of an infected Aedes species mosquito.