Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Entity Registrant Name | Grifols SA |
Entity Central Index Key | 1,438,569 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Class A, Ordinary shares | |
Entity Common Stock, Shares Outstanding | 426,129,798 |
Class B, Preference shares | |
Entity Common Stock, Shares Outstanding | 261,425,110 |
Consolidated Balance Sheets
Consolidated Balance Sheets - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Non-current assets | ||
Goodwill | € 4,590,498 | € 3,643,995 |
Other intangible assets | 1,269,342 | 1,195,302 |
Property, plant and equipment | 1,760,053 | 1,809,852 |
Investments in equity-accounted investees | 219,009 | 201,345 |
Non-current financial assets | ||
Non-current financial assets measured at fair value | 47,046 | 58,864 |
Non-current financial assets not measured at fair value | 22,843 | 30,681 |
Total non-current financial assets | 69,889 | 89,545 |
Deferred tax assets | 66,157 | 67,219 |
Total non-current assets | 7,974,948 | 7,007,258 |
Current assets | ||
Inventories | 1,629,293 | 1,642,931 |
Trade and other receivables | ||
Trade receivables | 286,198 | 413,656 |
Other receivables | 40,681 | 42,299 |
Current income tax assets | 59,531 | 77,713 |
Total trade and other receivables | 386,410 | 533,668 |
Other current financial assets | 10,738 | 2,582 |
Other current assets | 32,354 | 48,324 |
Cash and cash equivalents | 886,521 | 895,009 |
Total current assets | 2,945,316 | 3,122,514 |
Total assets | 10,920,264 | 10,129,772 |
Equity and liabilities | ||
Share capital | 119,604 | 119,604 |
Share premium | 910,728 | 910,728 |
Reserves | 2,027,648 | 1,694,245 |
Treasury stock | (62,422) | (68,710) |
Interim dividend | (122,986) | (122,908) |
Profit for the year attributable to the Parent | 662,700 | 545,456 |
Total equity | 3,535,272 | 3,078,415 |
Available for sale financial assets | 4,926 | (5,219) |
Other comprehensive Income | (656) | (642) |
Translation differences | 89,537 | 648,927 |
Other comprehensive expenses | 93,807 | 643,066 |
Equity attributable to the Parent | 3,629,079 | 3,721,481 |
Non-controlling interests | 4,886 | 6,497 |
Total equity | 3,633,965 | 3,727,978 |
Non-current liabilities | ||
Grants | 11,822 | 12,196 |
Provisions | 5,763 | 5,118 |
Non-current financial liabilities | 5,901,815 | 4,712,071 |
Deferred tax liabilities | 388,912 | 600,646 |
Total non-current liabilities | 6,308,312 | 5,330,031 |
Current liabilities | ||
Provisions | 106,995 | 89,588 |
Current financial liabilities | 155,070 | 230,065 |
Trade and Other Payables | ||
Suppliers | 423,096 | 461,073 |
Other payables | 141,720 | 142,894 |
Current income tax liabilities | 6,709 | 7,957 |
Total trade and other payables | 571,525 | 611,924 |
Other current liabilities | 144,397 | 140,186 |
Total current liabilities | 977,987 | 1,071,763 |
Total liabilities | 7,286,299 | 6,401,794 |
Total equity and liabilities | € 10,920,264 | € 10,129,772 |
Consolidated Statements of Prof
Consolidated Statements of Profit and Loss - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Continuing Operations | |||
Net revenue | € 4,318,073 | € 4,049,830 | € 3,934,563 |
Cost of sales | (2,166,062) | (2,137,539) | (2,003,565) |
Gross profit | 2,152,011 | 1,912,291 | 1,930,998 |
Research and Development | (288,320) | (197,617) | (224,193) |
Selling, General and Administration expenses | (860,348) | (775,266) | (736,435) |
Operating Expenses | (1,148,668) | (972,883) | (960,628) |
Operating Result | 1,003,343 | 939,408 | 970,370 |
Finance income | 9,678 | 9,934 | 5,841 |
Finance costs | (263,344) | (244,829) | (240,335) |
Change in fair value of financial instruments | (3,752) | (7,610) | (25,206) |
Impairment and gains / (losses) on disposal of financial instruments | (18,844) | ||
Exchange differences | (11,472) | 8,916 | (12,140) |
Finance result | (287,734) | (233,589) | (271,840) |
Share of losses of equity accounted investees | (19,887) | 6,933 | (8,280) |
Profit before income tax from continuing operations | 695,722 | 712,752 | 690,250 |
Income tax expense | (34,408) | (168,209) | (158,809) |
Profit after income tax from continuing operations | 661,314 | 544,543 | 531,441 |
Consolidated profit for the year | 661,314 | 544,543 | 531,441 |
Profit attributable to the Parent | 662,700 | 545,456 | 532,145 |
Loss attributable to non-controlling interest | € (1,386) | € (913) | € (704) |
Basic earnings per share (Euros) | € 0.97 | € 0.80 | € 0.78 |
Diluted earnings per share (Euros) | € 0.97 | € 0.80 | € 0.78 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Comprehensive Income | |||
Consolidated profit for the year | € 661,314 | € 544,543 | € 531,441 |
Items for reclassification to profit or loss | |||
Translation differences | (532,389) | 103,833 | 290,635 |
Translation differences / Cash Flow Hedge | (6,809) | ||
Available for sale financial Assets | 10,145 | (5,219) | |
Equity accounted investees / Translation differences | (27,134) | 10,671 | 2,673 |
Cash flow hedges - effective part of changes in fair value | 14,501 | 55,305 | |
Cash flow hedges - amounts taken to profit or loss | (7,426) | (25,206) | |
Other comprehensive income | (14) | (4,810) | 4,575 |
Tax effect | (2,462) | (12,093) | |
Other comprehensive income / (expense) for the year | (549,392) | 102,279 | 315,889 |
Total comprehensive income for the year | 111,922 | 646,822 | 847,330 |
Total comprehensive income attributable to the Parent | 113,441 | 647,667 | 848,603 |
Total comprehensive expense attributable to the non-controlling interests | € (1,519) | € (845) | € (1,273) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Profit before tax | € 695,722 | € 712,752 | € 690,250 |
Adjustments for: | 556,792 | 391,986 | 460,564 |
Amortization and depreciation | 215,490 | 201,869 | 189,755 |
Other adjustments: | 341,302 | 190,117 | 270,809 |
(Profit) / losses on equity accounted investments | 19,888 | (6,933) | 8,280 |
Impairment of assets and net provision charges | 66,047 | (23,079) | (564) |
(Profit) / losses on disposal of fixed assets | 1,551 | (2,987) | 6,721 |
Government grants taken to income | (286) | (1,681) | (1,854) |
Finance cost / (income) | 263,657 | 236,034 | 256,129 |
Other adjustments | (9,555) | (11,237) | 2,097 |
Change in operating assets and liabilities | (65,800) | (164,319) | (77,058) |
Change in inventories | (165,508) | (173,003) | (120,641) |
Change in trade and other receivables | 80,112 | (25,180) | 144,405 |
Change in current financial assets and other current assets | (2,691) | (2,610) | (5,565) |
Change in current trade and other payables | 22,287 | 36,474 | (95,257) |
Other cash flows used in operating activities | (344,968) | (387,141) | (330,978) |
Interest paid | (207,079) | (180,497) | (171,380) |
Interest received | 9,492 | 8,685 | 4,316 |
Income tax (paid) / received | (147,015) | (215,329) | (163,914) |
Other recovered (paid) | (366) | ||
Net cash from operating activities | 841,746 | 553,278 | 742,778 |
Cash flows from investing activities | |||
Payments for investments | (2,209,667) | (509,078) | (647,417) |
Group companies, associates and business units (notes 3, 2 (b) and 10) | (1,857,210) | (202,727) | (58,609) |
Property, plant and equipment and intangibles | (322,973) | (292,690) | (567,020) |
Property, plant and equipment | (251,507) | (249,416) | (522,587) |
Intangible assets | (71,466) | (43,274) | (44,433) |
Other financial assets | (29,484) | (13,661) | (21,788) |
Proceeds from sale of investments | 23,787 | 2,426 | 14,307 |
Property, plant and equipment | 762 | 2,426 | 14,307 |
Other financial assets | 23,025 | ||
Net cash used in investing activities | (2,185,880) | (506,652) | (633,110) |
Cash flows from financing activities | |||
Proceeds from and payments for equity instruments | (11,766) | 12,695 | |
Payments for treasury stock | (12,686) | (58,457) | |
Sales of treasury stock | 920 | 71,152 | |
Proceeds from and payments for financial liability instruments | 1,808,771 | (80,149) | 28,953 |
Issue | 1,912,615 | 81,513 | 178,686 |
Redemption and repayment | (103,844) | (161,662) | (149,733) |
Dividends and interest on other equity instruments | (218,260) | (216,151) | (216,772) |
Dividends paid | (218,260) | (216,151) | (221,772) |
Dividends received | 5,000 | ||
Other cash flows from / (used in) financing activities | (156,446) | (21,492) | 17,086 |
Financing costs included on the amortised costs of the debt | (142,288) | ||
Other amounts from / (used in) financing activities | (14,158) | (21,492) | 17,086 |
Net cash from/(used in) financing activities | 1,434,065 | (329,558) | (158,038) |
Effect of exchange rate fluctuations on cash | (98,419) | 35,441 | 111,724 |
Net increase in cash and cash equivalents | (8,488) | (247,491) | 63,354 |
Cash and cash equivalents at beginning of the year | 895,009 | 1,142,500 | 1,079,146 |
Cash and cash equivalents at year end | € 886,521 | € 895,009 | € 1,142,500 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity - EUR (€) € in Thousands | Equity attributable to parent | Share capital | Share premium | Reserves | Profit attributable to parent | Interim dividend | Treasury stock | Translation differences | Available for sale financial assets | Other comprehensive income | Cash flow hedges | Non-controlling interests | Total |
Balance at beginning of the year at Dec. 31, 2014 | € 2,658,123 | € 119,604 | € 910,728 | € 1,088,337 | € 470,253 | € (85,944) | € (69,252) | € 240,614 | € (406) | € (15,811) | € 4,765 | € 2,662,888 | |
Translation differences | 293,877 | 293,877 | (569) | 293,308 | |||||||||
Cash flow hedges | 19,140 | 19,140 | 19,140 | ||||||||||
Other comprehensive income | 3,441 | 3,441 | 3,441 | ||||||||||
Other comprehensive income / (expense) for the year | 316,458 | 293,877 | 3,441 | 19,140 | (569) | 315,889 | |||||||
Profit/(loss) for the year | 532,145 | 532,145 | (704) | 531,441 | |||||||||
Total comprehensive income for the year | 848,603 | 532,145 | 293,877 | 3,441 | 19,140 | (1,273) | 847,330 | ||||||
Net change in treasury stock | 12,695 | 2,018 | 10,677 | 12,695 | |||||||||
Acquisition of non-controlling interests | (1,770) | (1,770) | 1,767 | (3) | |||||||||
Other changes | 324 | 324 | (72) | 252 | |||||||||
Interim dividend | (119,615) | (119,615) | (119,615) | ||||||||||
Distribution of prior year profit, reserves | 368,096 | (368,096) | |||||||||||
Distribution of prior year profit, dividends | (102,157) | (102,157) | (102,157) | ||||||||||
Distribution of prior year profit, interim dividend | (85,944) | 85,944 | |||||||||||
Operations with shareholders or owners | (210,523) | 282,724 | (470,253) | (33,671) | 10,677 | 1,695 | (208,828) | ||||||
Balance at end of the year at Dec. 31, 2015 | 3,296,203 | 119,604 | 910,728 | 1,371,061 | 532,145 | (119,615) | (58,575) | 534,491 | 3,035 | 3,329 | 5,187 | 3,301,390 | |
Translation differences | 114,436 | 114,436 | 68 | 114,504 | |||||||||
Available for sale financial assets | (5,219) | € (5,219) | (5,219) | ||||||||||
Cash flow hedges | (3,329) | (3,329) | (3,329) | ||||||||||
Other comprehensive income | (3,677) | (3,677) | (3,677) | ||||||||||
Other comprehensive income / (expense) for the year | 102,211 | 114,436 | (5,219) | (3,677) | (3,329) | 68 | 102,279 | ||||||
Profit/(loss) for the year | 545,456 | 545,456 | (913) | 544,543 | |||||||||
Total comprehensive income for the year | 647,667 | 545,456 | 114,436 | (5,219) | (3,677) | € (3,329) | (845) | 646,822 | |||||
Net change in treasury stock | (10,317) | (182) | (10,135) | (10,317) | |||||||||
Acquisition of non-controlling interests | (2,737) | (2,737) | 2,737 | ||||||||||
Other changes | 6,816 | 6,816 | (582) | 6,234 | |||||||||
Interim dividend | (122,908) | (122,908) | (122,908) | ||||||||||
Distribution of prior year profit, reserves | 319,287 | (319,287) | |||||||||||
Distribution of prior year profit, dividends | (93,243) | (93,243) | (93,243) | ||||||||||
Distribution of prior year profit, interim dividend | (119,615) | 119,615 | |||||||||||
Operations with shareholders or owners | (222,389) | 323,184 | (532,145) | (3,293) | (10,135) | 2,155 | (220,234) | ||||||
Balance at end of the year at Dec. 31, 2016 | 3,721,481 | 119,604 | 910,728 | 1,694,245 | 545,456 | (122,908) | (68,710) | 648,927 | (5,219) | (642) | 6,497 | 3,727,978 | |
Translation differences | (559,390) | (559,390) | (133) | (559,523) | |||||||||
Available for sale financial assets | 10,145 | 10,145 | 10,145 | ||||||||||
Other comprehensive income | (14) | (14) | (14) | ||||||||||
Other comprehensive income / (expense) for the year | (549,259) | (559,390) | 10,145 | (14) | (133) | (549,392) | |||||||
Profit/(loss) for the year | 662,700 | 662,700 | (1,386) | 661,314 | |||||||||
Total comprehensive income for the year | 113,441 | 662,700 | (559,390) | 10,145 | (14) | (1,519) | 111,922 | ||||||
Net change in treasury stock | 6,288 | 6,288 | 6,288 | ||||||||||
Acquisition of non-controlling interests | (346) | (346) | (43) | (389) | |||||||||
Other changes | 6,475 | 6,475 | (49) | 6,426 | |||||||||
Interim dividend | (122,986) | (122,986) | (122,986) | ||||||||||
Distribution of prior year profit, reserves | 422,548 | (422,548) | |||||||||||
Distribution of prior year profit, dividends | (95,274) | (95,274) | (95,274) | ||||||||||
Distribution of prior year profit, interim dividend | (122,908) | 122,908 | |||||||||||
Operations with shareholders or owners | (205,843) | 333,403 | (545,456) | (78) | 6,288 | (92) | (205,935) | ||||||
Balance at end of the year at Dec. 31, 2017 | € 3,629,079 | € 119,604 | € 910,728 | € 2,027,648 | € 662,700 | € (122,986) | € (62,422) | € 89,537 | € 4,926 | € (656) | € 4,886 | € 3,633,965 |
Nature, Principal Activities an
Nature, Principal Activities and Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Nature, Principal Activities and Subsidiaries | |
Nature, Principal Activities and Subsidiaries | (1) Nature, Principal Activities and Subsidiaries Grifols, S.A. (hereinafter the Company) was incorporated with limited liability under Spanish law on 22 June 1987. Its registered and tax offices are 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. On 17 May 2006 the Company completed its flotation on the Spanish securities market, which was conducted through the public offering of 71,000,000 ordinary shares of Euros 0.50 par value each and a share premium of Euros 3.90 per share. The total capital increase (including the share premium) amounted to Euros 312.4 million, equivalent to a price of Euros 4.40 per share. The Company’s shares were floated on the Spanish stock exchange IBEX-35 index on 2 January 2008. All of the Company’s shares are listed on the Barcelona, Madrid, Valencia and Bilbao securities markets and on the Spanish Automated Quotation System (SIBE/Continuous Market). On 2 June 2011, Class B non-voting shares were listed on the NASDAQ (USA) and on the Spanish Automated Quotation System (SIBE/Continuous Market). Grifols, S.A. is the Parent of the subsidiaries listed in Appendix I of this note to the Consolidated Financial Statements. Grifols, S.A. and subsidiaries (hereinafter the Group) act on an integrated basis and under common management and their principal activity is the procurement, manufacture, preparation and sale of therapeutic products, especially haemoderivatives. The main factory locations of the Group’s Spanish companies are in Parets del Vallés (Barcelona) and Torres de Cotilla (Murcia), while the US companies are located in Los Angeles (California), Clayton (North Carolina), Emeryville (California), and San Diego (California). |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation | |
Basis of Presentation | (2) Basis of Presentation The Consolidated Financial Statements have been prepared on the basis of the accounting records of Grifols, S.A. and of the Group companies. The Consolidated Financial Statements for 2017 have been prepared under International Financial Reporting Standard as issued by International Accounting Standard Board (IFRS-IASB) which for Grifols Group purposes, are identical to the standards as endorsed by the International Financial Reporting Standards as adopted by the European Union (IFRS-EU) to present fairly the consolidated equity and consolidated financial position of Grifols, S.A. and subsidiaries at 31 December 2017, as well as the consolidated results from their operations, consolidated cash flows and consolidated changes in equity for the year then ended. The Group adopted IFRS-EU for the first time on 1 January 2004 and has been preparing its annual accounts under International Financial Reporting Standards, as adopted by the European Union (IFRS-EU) as required by capital market regulations governing the presentation of financial statements by companies whose debt or own equity instruments are listed on a regulated market. The Board of Directors of Grifols, S.A. considers that these Consolidated Financial Statements authorized for issue at their meeting held on 3 April 2018. 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) (see Appendix I), for the financial year ended 31 December 2017 as referred to in subsection 1(b) of that Act, for the purposes of enabling Grifols Worldwide Operations Limited to claim exemption from the requirement to file their own financial statements in Ireland. (a) Relevant accounting estimates, assumptions and judgments used when applying accounting principles The preparation of the Consolidated Financial Statements in conformity with IFRS-EU requires management to make judgments, estimates and assumptions that affect the application of Group accounting policies. The following notes include a summary of the relevant accounting estimates and judgments used to apply accounting policies which have the most significant effect on the amounts recognized in the Consolidated Financial Statements. · Assumptions used to test non-current assets and goodwill for impairment. Relevant cash generating units are tested annually for impairment. These are based on risk-adjusted future cash flows discounted using appropriate interest rates. The key assumptions used are specified in note 7. Assumptions relating to risk-adjusted future cash flows and discount rates are based on business forecasts and are therefore inherently subjective. Future events could cause a change in business forecasts, with a consequent adverse effect on the future results of the Group. To the extent considered a reasonably possible change in key assumptions could result in an impairment of goodwill, a sensitivity analysis has been disclosed to show the effect of changes to these assumptions and the effect of the cash generating unit (CGU) on the recoverable amount. · Determination of the fair value of assets, liabilities and contingent liabilities related to business combinations. Details of the fair value methods used by the Group are provided in note 3. · Evaluation of the capitalization of development costs (see note 4(h)). The key assumption is related to the estimation of sufficient future economic benefits of the projects. · Evaluation of provisions and contingencies. Key assumptions relate to the evaluation of the likelihood of an outflow of resources due to a past event, as well as to the evaluation of the best estimate of the likely outcome. These estimates take into account the specific circumstances of each dispute and relevant external advice and therefore are inherently subjective and could change substantially over time as new facts arise and each dispute progresses. Details of the status of various uncertainties involved in significant unresolved disputes are set out in note 29. · Evaluation of the recoverability of tax credits, including tax loss carryforwards and rights for deductions. Deferred tax assets are recognized to the extent that future taxable profits will be available against which the temporary differences can be utilized, based on management’s assumptions relating to the amount and timing of future taxable profits (see notes 4(t) and 27). · Analysis that the refinancing of debt and bonds does not result in a new financial liability. No changes have been made to prior year judgments relating to existing uncertainties. The Group is also exposed to interest rate and currency risks. Refer to sensitivity analysis in note 30. (b) Basis of consolidation Appendix I shows details of the percentages of direct or indirect ownership of subsidiaries by the Company at 31 December 2017, 2016 and 2015, as well as the consolidation method used in each case for preparation of the accompanying Consolidated Financial Statements. Subsidiaries in which the Company directly or indirectly owns the majority of equity or voting rights have been fully consolidated. Associates in which the Company owns between 20% and 50% of share capital and over which it has no control but does have significant influence, have been accounted for under the equity method. Although the Group holds 30% of the shares with voting rights of Grifols Malaysia Sdn Bhd, it controls the majority of the economic and voting rights of Grifols Malaysia Sdn Bhd through a contract with the other shareholder and a pledge on its shares. As a consequence it has been fully consolidated. Grifols (Thailand) Ltd. has two classes of shares and it grants the majority of voting rights to the class of shares held by the Group. As a consequence it has been fully consolidated. Changes in associates are detailed in note 10. Changes in subsidiaries In 2017: · On 4 December 2017, Progenika Biopharma, S.A., transferred the total shares of Abyntek Biopharma, S.L. to a third party. No profit or loss has been recognized on this transaction. · On 11 October 2017, Grifols Diagnostic Solutions, Inc. acquired an additional 0.98% interest in Progenika Biopharma, S.A. from its non-controlling interests for a total amount of Euros 644 thousand in the form of a cash payment. As a result, Grifols owns 90.23% of Progenika’s share capital at 31 December 2017. · On 24 July 2017, Grifols has acquired an additional 40% interest in Kiro Grifols, S.L. for a purchase price of Euros 12.8 million. With this new acquisition, Grifols has reached a 90% interest in equity of Kiro Grifols S.L. (see note 3(b)). · On 13 March 2017, Progenika Latina, S.A. de C.V., was wound up. The assets and liabilities of Progenika Latina. S.A. de C.V. have been integrated into Progenika Biopharma, S.A. · On 31 January 2017, Grifols closed the transaction for the asset purchase agreement to acquire Hologic’s business of NAT (Nucleic Acid Testing) donor screening unit, previously agreed on 14 December 2016, for a total amount of US Dollar 1,865 million (see note 3(a)). · On 5 January 2017, the Group incorporated a new company called Chiquito Acquisition Corp. · With effect as of 1 January 2017, Grifols Diagnostic Solutions, Inc. and Progenika, Inc. entered into a merger agreement. The surviving company was Grifols Diagnostic Solutions, Inc. In 2016 Grifols incorporated the following companies: · PBS Acquisition Corp. (USA) · Grifols Diagnostics Equipment Taiwan Limited (Taiwan) · Grifols Innovation and New Technologies Limited (Ireland) · On 12 December 2016, the Group company Grifols Innovation and New Technologies Limited subscribed to an increase in the share capital of VCN Biosciences, S.L. amounting to Euros 5 million. Following this capital increase, Grifols’ interest rose to 81.34%. Grifols subscribed to another capital increase on 16 November 2015 through the Group company Gri-Cel, S.A. for an amount of Euros 2,549 thousand (see note 3(d)). · With effect as of 1 November 2016, Grifols Brasil, Lda. and Gri-Cei, S.A Produtos para Trasfusao entered into a merger agreement. The surviving company was Grifols Brasil, Lda. · In August 2016 and July 2015 Araclon Biotech , S.L carried out two share capital increases of Euros 6.7 million and Euros 6 million, respectively. After the latter capital increase Grifols’ interest rose to 73.22% (see note 15 (c)). · In July 2016 the Group acquired an additional 20% of the assets of Medion Diagnostics AG in exchange for 59,951 treasury stocks (Class B Shares) from its non-controlling interests. After this acquisition, Grifols’ interest rose to 100%. · On 3 March, 2016 the Group executed the call option on 32.93% of the shares in Progenika Biopharma, S.A. for Euros 25 million following the exercise of call and put options agreed in February 2013. Grifols paid 50% of this investment in Grifols B shares (876,777 shares) and the remaining 50% in cash (see note 15(d)). The Group guaranteed the selling shareholders the option to repurchase the Class B shares during the first five days following the sale date. As a result, Grifols owns 89.25% of Progenika’s share capital at 31 December 2016. · With effect as of 1 January 2016, Progenika Biopharma, S.A and Brainco Biopharma, S.L entered into a merger agreement. The surviving company was Progenika Biopharma, S.A. In 2015: · On 9 February 2015 the Group acquired 100% of the assets of Gripdan Invest, S.L. for Euros 46 million in the form of a cash payment. · Effective as of 1 January 2015, Plasmacare, Inc and Biomat USA, Inc. entered into a merger agreement, the surviving company being Biomat USA, Inc. · Effective as of 1 January 2015, Proteomika, S.L.U. and Progenika Biopharma, S.A entered into a merger agreement, the surviving company being Progenika Biopharma, S.A. · Effective as of 1 January 2015, Arrahona Optimus, S.L and Grifols, S.A entered into a merger agreement, the surviving company being Grifols, S.A. Changes in associates and joint control Changes in associates and joint control are detailed in note 10. (c) Amendments to IFRS in 2017, 2016 and 2015 In accordance with IFRS, the following should be noted in connection with the scope of application of IFRS and the preparation of these Consolidated Financial Statements of the Group. Effective date in 2015 Mandatory application for annual periods beginning on or after: Standards IASB effective date EU effective date IAS 19 Defined Benefit Plans: employee contributions (amendments to IAS 19) 1 July 2014 1 February 2015 (*) Various Annual improvements to IFRSs 2010-2012 cycle 1 July 2014 1 February 2015 (*) Various Annual improvements to IFRSs 2011-2013 cycle 1 July 2014 1 January 2015 (*) (*) early adopted Effective date in 2016 Mandatory application for annual periods beginning on or after: Standards IASB effective date EU effective date IAS 16 IAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation (issued on 12 May 2014) 1 January 2016 1 January 2016 IFRS 11 Accounting for Acquisitions of Interests in Joint Operations (issued on 6 May 2014) 1 January 2016 1 January 2016 IAS 27 Equity Method in Separate Financial Statements (issued on 12 August 2014) 1 January 2016 1 January 2016 Various Annual Improvements to IFRSs 2012-2014 cycle (issued on 25 September 2014) 1 January 2016 1 January 2016 IAS 1 Disclosure Initiative (issued on 18 December 2014) 1 January 2016 1 January 2016 Effective date in 2017 Mandatory application for annual periods beginning on or after: Standards IASB effective date EU effective date IAS 12 Recognition of Deferred Tax Assets for Unrealized Losses (issued on 19 January 2016) 1 January 2017 1 January 2017 IAS 7 Disclosure Initiative (issued on 29 January 2016) 1 January 2017 1 January 2017 Various Annual improvements to IFRSs 2014 - 2016 cycle (issued on 8 December 2016) - IFRS 12 1 January 2017 Pending The modification to IFRS 12 issued by IASB is pending approval by the EU. Consequently, the Group confirms that despite the existing divergence between IFRS-IASB and IFRS-EU at 31 December 2017, it is a minor difference that requires additional information. The application of these standards and interpretations has had no material impact on these Consolidated Financial Statements. Standards issued but not effective in 2017 Mandatory application for annual periods beginning on or after: Standards IASB effective date EU effective date IFRS 15 Revenue from contracts with Customers (issued on 28 May 2014) 1 January 2018 1 January 2018 IFRS 15 Clarification to IFRS15 Revenue from Contracts with Customers (issued on 12 April 2016) 1 January 2018 1 January 2018 IFRS 9 Financial instruments (issued on 24 July 2014) 1 January 2018 1 January 2018 IFRS 2 Classification and Measurement of Share-based Payment Transactions (issued on 20 June 2016) 1 January 2018 pending IFRS 4 IFRS 9 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (issued on 12 September 2016) 1 January 2018 1 January 2018 IFRIC 22 IFRIC 22 Interpretation: Foreign currency translations and Advance Consideration 1 January 2018 pending IAS 40 Amendments to IAS 40: Transfers of Investment Property 1 January 2018 pending Various Annual improvements to IFRSs 2014 - 2016 cycle (issued on 8 December 2016) 1 January 2018 pending IFRS 16 Leases (Issued on 13 January 2016) 1 January 2019 1 January 2019 IFRIC 23 Uncertainty over Income Tax Treatments (issued on 7 June 2017) 1 January 2019 pending IFRS 9 Prepayment Features with Negative Compensation (issued on 12 October 2017) 1 January 2019 pending IAS 28 Long-term interests in Associates and Joint Ventures (issued on 12 October 2017) 1 January 2019 pending Various Annual Improvements to IFRS Standards 2015-2017 Cycle (issued on 12 December 2017) 1 January 2019 pending IFRS 17 Insurance Contracts (issued on 18 May 2017) 1 January 2021 pending IAS 19 Amendment to IAS19: Plan Amendment, Curtailment or Settlemet (issued on 77 February 2018) 1 January 2019 pending At the date of issue of these Consolidated Financial Statements, the Group is analyzing the impact of the application of the above standards or interpretations published by the International Accounting Standards Board (IASB). IFRS 9 Financial Instruments Based on the analysis at the date these Consolidated Financial Statements were authorized for issue, the expected impacts of adopting IFRS 9 Financial Instruments are summarized below: · Classification and measurement of financial assets: In general terms, based on the analysis of the new classification vis-à-vis the business model, no significant impacts are foreseen and the majority of financial assets are expected to continue to be measured at amortized cost, the main exception being equity instruments, which will be measured at fair value. · Impairment of financial assets: For trade receivables the Group will use the simplified approach, estimating lifetime expected credit losses, while for all other financial assets the Group will use the general approach for calculating expected credit losses. In both cases, due to the customers’ credit rating, as well as the internal classification systems currently in place for new customers, and considering that collection periods are mostly under 30 days, the adoption of IFRS 9 will not have a significant impact. · Modification or exchanges of financial liabilities that do not result in derecognition of liabilities According to the IASB’s interpretation published in October 2017, when a financial liability measured at amortized cost is modified or exchanged and does not result in the derecognition of the financial liability, a gain or loss should be recognized in profit or loss, calculated as the difference between the original contractual cash flows from the liability and the modified cash flows, discounted at the original effective interest rate of the liability. IFRS 9 must be applied retrospectively as of 1 January 2018, therefore any gains or losses from the modification of financial liabilities that arise from applying the new standard in years prior to 1 January 2018 will be recognized in reserves at that date. Grifols has retrospectively calculated the impact of adopting IFRS 9 on the refinancing of its senior debt and unsecured senior corporate bonds in 2014 and 2017. As a result of these new calculations, the 2014 refinancing of both debts did not cause the derecognition of the respective liabilities, therefore generating an adjustment to profit and loss in that year. Considering the retroactive adjustment generated in 2014, the 2017 refinancing of senior debt did not result in the derecognition of the financial liability either. However the unsecured senior corporate bonds refinancing did cause the derecognition of the liability as it did not pass the new quantitative test. The adoption of IFRS 9 entails a positive impact on reserves of Euros 24,636 thousand. Detail of the impact in reserves due to IFRS 9 aplication, were as follows: Thousand of Euros Impact Senior Unsecured Noted IAS 39 IFRS 9 01/01/2018 Total Debt Deferred Expenses ) Negative Impact in reserves Thousand of Euros Impact Senior Secured Debt IAS 39 IFRS 9 01/01/2018 Total Debt ) Deferred Expenses Positive impact in reserves ) Thousand of Euros Impact Total Impact IAS 39 IFRS 9 01/01/2018 Total Debt ) Deferred Expenses ) Positive impact in reserves ) IFRS 15 Revenue from Contracts with Customers. IFRS 15 provides a framework that replaces the previous guides on revenue recognition. According to the new criteria, a five-step model should be used to determine the timing and amounts of revenue recognition: Step 1: Identify the contract. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue. This new model specifies that revenue should be recognized when (or as) control of the goods or services is transferred from an entity to customers, for the amount the entity expects to be entitled to receive. Depending on whether certain criteria are met, revenue is recognized over time, reflecting that the entity has satisfied the performance obligation, or at a point in time, when control of the goods or services is transferred to customers. Based on the analysis at the date of preparing these Consolidated Financial Statements, there has been no impact from adopting IFRS 15 Revenue from Contracts with Customers. Under IFRS 15, entities may adopt the new standard retrospectively or through an adjustment for the accumulated effect at the start of the first year it is applicable. Grifols has opted for the accumulated effect approach as it deems the impact to be immaterial to the financial statements taken as a whole. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2017 | |
Business combinations | |
Business combinations | (3) Business Combinations 2017 (a) Hologic Acquisition On 14 December 2016 Grifols entered into an asset purchase agreement to acquire assets corresponding to Hologic’s NAT (Nucleic Acid Testing) business donor screening unit for US Dollars 1,865 million. The transaction was closed on 31 January 2017. The agreement encompasses the acquisition of the Hologic business engaged in research, development and manufacture of assays and instruments based on NAT technology for transfusion and transplantation screening. In addition, it was agreed to cancel the existing joint-collaboration agreement for the commercialization of NAT donor screening products by Grifols. NAT technology makes it possible to detect the presence of infectious agents in blood and plasma donations, contributing to greater transfusion safety. The transaction is structured through the purchase of assets by Grifols Diagnostic Solutions, Inc., a U.S. incorporated and wholly-owned subsidiary of Grifols, S.A. The assets acquired comprise a plant in San Diego, California (United States) as well as development rights, licenses to patents and access to product manufacturers. Grifols consolidates itself as one of the only vertically integrated providers capable of offering comprehensive solutions to blood and plasma donation centers. This acquisition strengthens cash flows and positively impacts the Group’s margins. The sales revenues of the Diagnostic Division will not change as a result of the acquisition due to the existing joint-business between Grifols and Hologic in place since 2014, under which Grifols already owns customer facing activities and records all revenues. It is expected that this acquisition will strengthen the position of the Grifols Diagnostic Division in transfusion medicine and will increase significantly the profitability of Grifols Diagnostic Division having a direct impact on the Group’s EBITDA margin. By streamlining and integrating the NAT business, operational efficiency will be in terms of production, R&D, overheads and administrative expenses. Details of the aggregate business combination cost, the fair value of the net assets acquired and goodwill at the acquisition date are provided below: Cost of the business combination Thousands of Euros Thousands of US Payment in cash Result of the cancellation of the existing contract Total business combination cost Fair value of net assets acquired Goodwill (excess of the cost of the business combination over the fair value of net assets acquired) As part of the purchase price allocation, the Company determined that the identifiable intangible assets were developed technology and IPR&D. The fair value of the intangible assets was estimated using the income approach. The cash flows were based on estimates used to price the transaction and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital. The developed technology assets are comprised of know-how, patents and technologies embedded in revenue. The Company applied the Relief-from-Royalty Method to determine its fair value. IPR&D projects relate to in-process projects that have not reached technological feasibility as of the acquisition date. All of the IPR&D assets were valued using the Multiple-Period Excess Earnings Method approach. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded to goodwill. The factors contributing to the recognition of the amount of goodwill were the assembled workforce, cost savings and benefits arising from the vertical integration of the business that will lead to efficiencies of R&D, commercial and manufacturing activities. The expenses incurred in this transaction in 2017 amount to approximately Euros 13 million (Euros 5.1 million in 2016). The resulting Goodwill has been allocated to the Diagnostic segment. The amounts determined at the date of acquisition of assets, liabilities and contingent liabilities were as follows: Fair Value Thousands of Euros Thousands of US R&D in progress Other Intangible assets Property, plant and equipment Deferred Tax Assets (note 27) Inventories Total Assets Current Provisions (note 19 (b)) Total liabilities and contingent liabilities Total net assets acquired (b) Kiro Grifols, S.L. On 25 July 2017 the Group subscribed a capital increase in Kiro Grifols, S.L (formerly Kiro Robotics, S.L.) for an amount of Euros 12.8 million, which represents 40% of the voting and economic rights of Kiro Grifols. In September 2014 the Group had already subscribed a capital increase in Kiro Grifols, S.L (formerly Kiro Robotics, S.L.) for an amount of Euros 21 million, by virtue of which Grifols acquired 50% of Kiro Grifols economic and voting rights. The capital increase was paid by means of a monetary contribution. As a result, Grifols owns a total of 90% of the voting and economic rights of Kiro Grifols. The remaining 10% will continue to be held by Socios Fundadores Kiro, S.L. a company wholly owned by cooperatives of the Mondragon Corporation. Grifols also entered into a joint venture & shareholders’ agreement (the “Joint Venture Agreement”) with Kiro Grifols’ partners: Mondragon Innovacion S.P.E, S.A.; Mondragon Assembly, S.Coop. and Agrupación de Fundición y Utillaje, S.Coop.. This agreement governs, among other matters, the capital increase subscribed by Grifols and the managing and governing bodies of Kiro Grifols, whether these are the Board of Directors or any other internal managing and governing bodies. At the date of issue of these Consolidated Financial Statements, the Group is working to determine the definitive fair value of intangible assets, liabilities and contingent liabilities acquired in the business combination. (c) Kedplasma On 27 December 2016 Grifols entered into an agreement to acquire six new Plasma Donor Centers to the company Kedplasma, LLC, with a purchase price of US Dollar 47 million. Delivery of these centers has been made in February 2017. Aggregate details of the combination cost, fair value of the net assets acquired and goodwill at the acquisition date (or surplus net assets acquired over the combination cost) are as follows: Thousands of Euros Thousands of US Dollars Cost of the business combination Payment in cash Total business combination cost Fair value of net assets acquired Goodwill (excess of the cost of the business combination over the fair value of net assets acquired) The fair value of net assets acquired includes property, plant and equipment amounting to Euros 3,698 thousand. Goodwill is allocated to the Bioscience segment and includes plasma donor center base, FDA licenses and workforce retained. At 31 December 2016, the group advanced the sum of US Dollar 15 million related to this acquisition. 2015 (d) VCN On 14 February 2014 and 16 November 2015, the Group company Gri-Cel, S.A, subscribed both share capital increases in the capital of VCN Bioscience, S.L for Euros 700 thousand and Euros 2,549 thousand, respectively. After this capital increase, Grifols’ interest rises to 68.01% in 2015 and the company is fully consolidated at year end. Since 2016, the Group company Grifols Innovation and New Technologies Limited centralize the Group’s investments in R&D projects in fields of medicine other than its core business. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
Significant Accounting Policies | (4) Significant Accounting Policies (a) Subsidiaries and associates Subsidiaries are entities, including special purpose entities (SPE), over which the Group exercises control, either directly or indirectly, through subsidiaries. The Group controls a subsidiary when it has the substantive rights in force that provide the ability to manage relevant activities. The Group is exposed or has the right to variable returns for its involvement in the subsidiaries when the returns obtained vary depending on the economic performance of the subsidiaries. The income, expenses and cash flows of subsidiaries are included in the Consolidated Financial Statements from the date of acquisition, which is when the Group takes control. Subsidiaries are excluded from the consolidated Group from the date on which control is lost. Transactions and balances with Group companies and unrealized gains or losses have been eliminated upon consolidation. The accounting policies of subsidiaries have been adapted to those of the Group for transactions and other events in similar circumstances. The financial statements of consolidated subsidiaries have been prepared as of the same date and for the same reporting period as the financial statements of the Company. 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 entities. 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 Group or other entities, are considered when assessing whether an entity has significant influence. Investments in associates are accounted for using the equity method from the date that significant influence commences until the date that significant influence ceases. Investments in associates are initially recognized at acquisition cost, including any cost directly attributable to the acquisition and any consideration receivable or payable contingent on future events or on compliance with certain conditions. The excess of the cost of the investment over the Group’s share of the fair values of the identifiable net assets is recognized as goodwill, which is included in the carrying amount of the investment. Any shortfall, once the cost of the investment and the identification and measurement of the associate’s net assets have been evaluated, is recognized as income when determining the investor’s share of the profit and loss of the associate for the year in which it was acquired. The accounting policies of associates have been harmonized in terms of timing and measurement, applying the policies described for subsidiaries. The Group’s share of the profit and loss of an associate from the date of acquisition is recognized as an increase or decrease in the value of the investments, with a credit or debit to share of the profit and loss for the year of “equity-accounted investees” in the consolidated statement of profit and loss (consolidated statement of comprehensive income). The Group’s share of other comprehensive income of associates from the date of acquisition is recognized as an increase or decrease in the investments in associates with a balancing entry recognized by type in other comprehensive income. The distribution of dividends is recognized as a decrease in the value of the investment. The Group’s share of profit and loss, including impairment losses recognized by the associates, is calculated based on income and expenses arising from application of the acquisition method. The Group’s share of the profit and loss of an associate and changes in equity is calculated to the extent of the Group’s interest in the associate at year end and does not reflect the possible exercise or conversion of potential voting rights. However, the Group’s share is calculated taking into account the possible exercise of potential voting rights and other derivative financial instruments which, in substance, currently allow access to the economic benefits associated with the interests held, such as entitlement to a share in future dividends and changes in the value of associates. Information on the subsidiaries and associates included in the consolidated Group is presented in Appendix I. (b) Business combinations On the date of transition to IFRS-EU, 1 January 2004, the Group applied the exception permitted under IFRS 1 The Group applies the revised IFRS 3 “Business combinations” in transactions made subsequent to 1 January 2010. The Group applies the acquisition method for business combinations. The acquisition date is the date on which the Group obtains control of the acquiree. Business combinations made subsequent to 1 January 2010 The cost of the business combination is calculated as the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred or assumed, equity instruments issued and any additional consideration contingent on future events or the fulfilment of certain conditions, in exchange for control of the acquiree. The consideration paid excludes all amounts that do not form part of the exchange for the acquired business. Acquisition-related costs are accounted for as expenses when incurred. Share increase costs are recognized as equity when the increase takes place and borrowing costs are deducted from the financial liability when it is recognized. At the acquisition date the Group recognizes at fair value the assets acquired and liabilities assumed. Liabilities assumed include any contingent liabilities that represent present obligations arising from past events for which the fair value can be reliably measured. The Group also recognizes indemnification assets transferred by the seller at the same time and following the same measurement criteria as the item that is subject to indemnification from the acquired business, taking into consideration, where applicable, the insolvency risk and any contractual limit on the indemnity amount. This criterion does not include non-current assets or disposal groups of assets which are classified as held for sale, long-term defined benefit employee benefit liabilities, share-based payment transactions, deferred tax assets and liabilities and intangible assets arising from the acquisition of previously transferred rights. Assumed assets and liabilities are classified and designated for subsequent measurement in accordance with the contractual terms, economic conditions, operating or accounting policies and other factors that exist at the acquisition date, except for leases and insurance contracts. The excess between the consideration transferred and the value of net assets acquired and liabilities assumed, less the value assigned to non-controlling interests, is recognized as goodwill. Where applicable, any shortfall, after evaluating the consideration transferred, the value assigned to non-controlling interests and the identification and measurement of net assets acquired, is recognized in profit and loss. When a business combination has been provisionally determined, net identifiable assets have initially been recognized at their provisional value, and any adjustments made during the measurement period have been recorded as if they had been known at that date. Where applicable, comparative figures for the prior year have been restated. Adjustments to the provisional values only reflect information relating to events and circumstances existing at the acquisition date and which, had they been known, would have affected the amounts recognized at that date. Once this period has elapsed, adjustments are only made to initial values when errors must be corrected. Any potential benefits arising from tax losses and other deferred tax assets of the acquiree that have not been recorded as they did not qualify for recognition at the acquisition date, are accounted for as income tax revenue, provided the adjustments were not made during the measurement period. The contingent consideration is classified in accordance with underlying contractual terms as a financial asset or financial liability, equity instrument or provision. Provided that subsequent changes to the fair value of a financial asset or financial liability do not relate to an adjustment of the measurement period, they are recognized in consolidated profit and loss. The contingent consideration classified, where applicable, as equity is not subject to subsequent change, with settlement being recognized in equity. The contingent consideration classified, where applicable, as a provision is recognized subsequently in accordance with the relevant measurement standard. Business combinations made prior to 1 January 2010 The cost of the business combination is calculated as the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred or assumed, and equity instruments issued by the Group, in exchange for control of the acquiree, plus any costs directly attributable to the business combination. Any additional consideration contingent on future events or the fulfilment of certain conditions is included in the cost of the combination provided that it is probable that an outflow of resources embodying economic benefits will be required and the amount of the obligation can be reliably estimated. Subsequent recognition of contingent considerations or subsequent variations to contingent considerations is recognized as a prospective adjustment to the cost of the business combination. Where the cost of the business combination exceeds the Group’s interest in the fair value of the identifiable net assets of the entity acquired, the difference is recognized as goodwill, whilst the shortfall, once the costs of the business combination and the fair values of net assets acquired have been reconsidered, is recognized in profit and loss. (c) Non-controlling interests Non-controlling interests in subsidiaries acquired after 1 January 2004 are recognized at the acquisition date at the proportional part of the fair value of the identifiable net assets. Non-controlling interests in subsidiaries acquired prior to the transition date were recognized at the proportional part of the equity of the subsidiaries at the date of first consolidation. Non-controlling interests are disclosed in the consolidated balance sheet under equity separately from equity attributable to the Parent. Non-controlling interests’ share in consolidated profit and loss for the year (and in consolidated comprehensive income for the year) is disclosed separately in the consolidated statement of profit and loss (consolidated statement of comprehensive income). The consolidated profit and loss for the year, consolidated comprehensive income and changes in equity of the subsidiaries attributable to the Group and non-controlling interests after consolidation adjustments and eliminations, is determined in accordance with the percentage ownership at year end, without considering the possible exercise or conversion of potential voting rights. However, Group and non-controlling interests are calculated taking into account the possible exercise of potential voting rights and other derivative financial instruments which, in substance, currently allow access to the economic benefits associated with the interests held, such as entitlement to a share in future dividends and changes in the value of subsidiaries. Profit and loss and each component of other comprehensive income are assigned to equity attributable to shareholders of the Parent and to non-controlling interests in proportion to their interest, although this implies a balance receivable from non-controlling interests. Agreements signed between the Group and the non-controlling interests are recognized as a separate transaction. The increase and reduction of non-controlling interests in a subsidiary in which control is retained is recognized as an equity instrument transaction. Consequently, no new acquisition cost arises on increases, nor is a gain recorded on reductions; rather, the difference between the consideration transferred or received and the carrying amount of the non-controlling interests is recognized in the reserves of the investor, without prejudice to reclassifying consolidation reserves and reallocating other comprehensive income between the Group and the non-controlling interests. When a Group’s interest in a subsidiary diminishes, non-controlling interests are recognized at their share of the net consolidated assets, including goodwill. (d) Joint arrangements Joint arrangements are those in which there is a contractual agreement to share the control over an economic activity, in such a way that the decisions over relevant activities require the unanimous consent of the Group and the remaining venturers. Investments in joint arrangements are accounted for using the equity method. The acquisition cost of investments in joint arrangements is determined consistently with that established for investments in associates. (e) Foreign currency transactions and balances (i) Functional and presentation currency The Consolidated Financial Statements are presented in thousands of Euros, which is the functional and presentation currency of the Parent. (ii) Foreign currency transactions, balances and cash flows Foreign currency transactions are translated into the functional currency using the previous month’s exchange rate for all transactions performed 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 thousands of 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. Non-monetary assets measured at fair value have been translated into thousands of Euros at the exchange rate at the date that the fair value was determined. In the consolidated statement of cash flows, cash flows from foreign currency transactions have been translated into thousands of Euros at the exchange rates prevailing at the dates the cash flows occur. The effect of exchange rate fluctuations on cash and cash equivalents denominated in foreign currencies is recognized separately in the statement of cash flows as “Effect of exchange rate fluctuations on cash and cash equivalents”. Exchange gains and losses arising on the settlement of foreign currency transactions and the translation into thousands of Euros of monetary assets and liabilities denominated in foreign currencies are recognized in profit and loss. (iii) Translation of foreign operations The translation into thousands of Euros of foreign operations for which the functional currency is not the currency of a hyperinflationary economy is based on the following criteria: · Assets and liabilities, including goodwill and net asset adjustments derived from the acquisition of the operations, including comparative amounts, are translated at the closing rate at the reporting date; · Income and expenses, including comparative amounts, are translated using the previous month’s exchange rate for all transactions performed during the current month. This method does not differ significantly from using the exchange rate at the date of the transaction; · Translation differences resulting from application of the above criteria are recognized in other comprehensive income. (f) Borrowing costs In accordance with IAS 23 “Borrowing Costs”, since 1 January 2009 the Group recognizes borrowing costs directly attributable to the purchase, construction or production of qualifying assets as an increase in the value of these assets. Qualifying assets are those which require a substantial period of time before they can be used or sold. To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalization is determined as the actual borrowing costs incurred, less any investment income on the temporary investment of those funds. Capitalized borrowing costs corresponding to general borrowing are calculated as the weighted average of the qualifying assets without considering specific funds. The amount of borrowing costs capitalized cannot exceed the amount of borrowing costs incurred during that period. The capitalized borrowing costs include adjustments to the carrying amount of financial liabilities arising from the effective portion of hedges entered into by the Group. The Group begins capitalizing borrowing costs as part of the cost of a qualifying asset when it incurs expenditure for the asset, interest is accrued, and it undertakes activities that are necessary to prepare the asset for its intended use or sale, and ceases capitalizing borrowing costs when all or substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Nevertheless, capitalization of borrowing costs is suspended when active development is interrupted for extended periods. (g) Property, plant and equipment (i) Initial recognition Property, plant and equipment are recognized at cost or deemed cost, less accumulated depreciation and any accumulated impairment losses. The cost of self-constructed assets is determined using the same principles as for an acquired asset, while also considering the criteria applicable to production costs of inventories. Capitalized production costs are recognized by allocating the costs attributable to the asset to “Self-constructed non-current assets” in the consolidated statement of profit and loss. At 1 January 2004 the Group opted to apply the exemption regarding fair value and revaluation as deemed cost as permitted by IFRS 1 First time Adoption of International Financial Reporting Standards. (ii) Depreciation Property, plant and equipment are depreciated by allocating the depreciable amount of an asset on a systematic basis over its useful life. The depreciable amount is the cost or deemed cost of an asset, less its residual value. The Group determines the depreciation charge separately for each item for a component of property, plant and equipment with a cost that is significant in relation to the total cost of the asset. Property, plant and equipment are depreciated using the following criteria: Depreciation method Rates Buildings Straight line 1% - 3% Other property, technical equipment and machinery Straight line 4%-10% Other property, plant and equipment Straight line 7% - 33% The Group reviews residual values, useful lives and depreciation methods at each financial year end. Changes to initially established criteria are accounted for as a change in accounting estimates. (iii) Subsequent recognition Subsequent to initial recognition of the asset, only those costs incurred which will probably generate future profits and for which the amount may reliably be measured are capitalized. Costs of day-to-day servicing are recognized in profit and loss as incurred. Replacements of property, plant and equipment which qualify for capitalization are recognized 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. (iv) Impairment The Group tests for impairment and reversals of impairment losses on property, plant and equipment based on the criteria set out in note 4(i) below. (h) Intangible assets (i) Goodwill Goodwill is generated on the business combinations and is calculated using the criteria described in the section on business combinations. Goodwill is not amortized, but is tested for impairment annually or more frequently whenever there is an indication that goodwill may be impaired. Goodwill acquired in business combinations is allocated to the cash-generating units (CGUs) or groups of CGUs which are expected to benefit from the synergies of the business combination and the criteria described in note 7 are applied. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. (ii) Internally generated intangible assets Any research and development expenditure incurred during the research phase of projects is recognized as an expense when incurred. Costs related with development activities are capitalized when: · The Group has technical studies that demonstrate the feasibility of the production process; · The Group has undertaken a commitment to complete production of the asset, to make it available for sale or internal use; · The asset will generate sufficient future economic benefits; · The Group has sufficient technical and financial resources to complete development of the asset and has devised budget control and cost accounting systems that enable monitoring of budgetary costs, modifications and the expenditure actually attributable to the different projects. The cost of internally generated assets by the Group is calculated using the same criteria established for determining production costs of inventories. The production cost is capitalized by allocating the costs attributable to the asset to self-constructed non-current assets in the consolidated statement of profit and loss. Expenditure on activities that contribute to increasing the value of the different businesses in which the Group as a whole operates is expensed when incurred. Replacements or subsequent costs incurred on intangible assets are generally recognized as an expense, except where they increase the future economic benefits expected to be generated by the assets. (iii) Other intangible assets Other intangible assets are carried at cost, or at fair value if they arise on business combinations, less accumulated amortization and impairment losses. Intangible assets with indefinite useful lives are not amortized but tested for impairment at least annually. (iv) Intangible assets acquired in business combinations The cost of identifiable intangible assets acquired in the business combination of Hologic includes the fair value of the R&D projects and the Intellectual Property-Patents. The cost of identifiable intangible assets acquired in the business combination of Novartis includes the fair value of the existing royalty agreements. The cost of identifiable intangible assets acquired in the business combination of the Progenika Group includes the fair value of the currently marketed products sold and which are classified under “Other intangible assets” and “Development costs”. The cost of identifiable intangible assets acquired in the Talecris business combination includes the fair value of currently marketed products sold and which are classified under “Other intangible assets”. (v) Useful life and amortization rates The Group assesses whether the useful life of each intangible asset acquired is finite or indefinite. An intangible asset is regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the asset will generate net cash inflows. Intangible assets with finite useful lives are amortized by allocating the depreciable amount of an asset on a systematic basis over its useful life, by applying the following criteria: Amortisation method Rates Development expenses Straight line 10% Concessions, patents, licences, trademarks and similar Straight line 7% - 20% Computer software Straight line 33% Currently marketed products Straight line 3% - 10% The depreciable amount is the cost or deemed cost of an asset, less its residual value. The Group does not consider the residual value of its intangible assets to be material. The Group reviews the residual value, useful life and amortization method for intangible assets at each financial year end. Changes to initially established criteria are accounted for as a change in accounting estimates. (i) Impairment of goodwill, other intangible assets and other non-financial assets subject to depreciation or amortization The Group evaluates whether there are indications of possible impairment losses on non-financial assets subject to amortization or depreciation, to verify whether the carrying amount of these assets exceeds the recoverable amount. The Group tests goodwill, intangible assets with indefinite useful lives and intangible assets with finite useful lives that are not available for use for potential impairment at least annually, irrespective of whether there is any indication that the assets may be impaired. The recoverable amount of the assets is the higher of their fair value less costs of disposal and their value in use. An asset’s value in use is calculated based on an estimate of the future cash flows expected to derive from the use of the asset, expectations about possible variations in the amount or timing of those future cash flows, the time value of money, the price for bearing the uncertainty inherent in the asset and other factors that market participants would reflect in pricing the future cash flows deriving from the asset. Negative differences arising from comparison of the carrying amounts of the assets with their recoverable amounts are recognized in the consolidated statement of profit and loss. Recoverable amount is determined for each individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If this is the case, recoverable amount is determined for the cash-generating unit (CGU) to which the asset belongs. Impairment losses recognized for cash-generating units are first allocated to reduce, where applicable, the carrying amount of goodwill allocated to the CGU and then to the other assets of the CGU pro rata on the basis of the carrying amount of each asset. The carrying amount of each asset may not be reduced below the highest of its fair value less costs of disposal, its value in use and zero. At the end of each reporting period the Group assesses whether there is any indication that an impairment loss recognized 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 recognized in consolidated profit and loss. 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 amortization, had no impairment loss been recognized. A reversal of an impairment loss for a CGU is allocated to the assets of each unit, except goodwill, pro rata with the carrying amounts of those assets. The carrying amount of an asset may not be increased above the lower of its recoverable amount and the carrying amount that would have been disclosed, net of amortization or depreciation, had no impairment loss been recognized. (j) Leases (i) Lessee accounting records The Group has rights to use certain assets through lease contracts. Leases in which the Group 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 Group recognizes 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. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are recognized as an expense in the years in which they are incurred. Operating leases Lease payments under an operating lease (excluding incentives) are recognized as an expense on a straight-line basis unless another systematic basis is representative of the time pattern of the user’s benefit. (ii) Leasehold investments Non-current investments in properties leased from third parties are recognized on the basis of the same criteria for property, plant and equipment. Investments are amortized over the lower of their useful lives and the term of the lease contract. The lease term is consistent with that established for recognition of the lease. (iii) Sale and leaseback transactions Any profit on sale and leaseback transactions that meet the conditions of a finance lease is deferred over the term of the lease. When the leaseback is classified as an operating lease: If the transaction is established at fair value, any profit and loss on the sale is recognized immediately in the consolidated statement of profit and loss for the year; If the sale price is below fair value, any profit and loss is recognized immediately in the consolidated statement of profit and loss. However, if the loss is compensated for by future lease payments at below market price, it is deferred in proportion to the lease payments over the period for which the asset is to be used. (k) Financial instruments (i) Classification of financial instruments Financial instruments are classified on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, a financial asset and an equity instrument set out in IAS 32, Financial Instruments: Presentation. Financial instruments are classified into the following categories for valuation purposes: financial assets and financial liabilities at fair value through profit and loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets and financial liabilities. Financial instruments are classified into different categories based on the nature of the instruments and the Group’s intentions on initial recognition. Regular way purchases and sales of financial assets are recognized using trade date accounting, i.e. when the Group commits itself to purchase or sell an asset. a) Financial assets and liabilities at fair value through profit and loss Financial assets and financial liabilities at fair value through profit and loss are those which are classified as held for trading or which the Group designated as such on initial recognition. A financial asset or financial liability is classified as held for trading if: · It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; · It forms part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent pattern of short-term profit-taking, or · It is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument. Financial assets and financial liabilities at fair value through profit and loss are initially recognized at fair value. Transaction costs directly attributable to the acquisition or issue are recognized as an expense when incurred. After initial recognition, they are recognized at fair value through profit and loss. The Group does not reclassify any financial assets or liabilities from or to this category while they are recognized in the consolidated balance sheet. b) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those classified in other financial asset categories. These assets are recognized initially at fair value, including transaction costs, and subsequently measured at amortized cost using the effective interest method. c) Financial assets and financial liabilities carried at cost Investments in equity instruments whose fair value cannot be reliably measured and derivative instruments that are linked to these instruments and that must be settled by delivery of such unquoted equity instruments, are measured at cost. Nonetheless, if the financial assets or liabilities can be reliably measured subsequently on an ongoing basis, they are accounted for at fair value and any gain or loss is recognized in accor |
Financial Risk Management Polic
Financial Risk Management Policy | 12 Months Ended |
Dec. 31, 2017 | |
Financial Risk Management Policy | |
Financial Risk Management Policy | (5) Financial Risk Management Policy (a) General The Group is exposed to the following risks associated with the use of financial instruments: · Credit risk · Liquidity risk · Market risk: includes interest rate risk, currency risk and other price risks. This note provides information on the Group’s exposure to each of these risks, the Group’s objectives and procedures to measure and mitigate this risk, and the Group’s capital management strategy. More exhaustive quantitative information is disclosed in note 30 to the Consolidated Financial Statements. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, define appropriate risk limits and controls and to control risks and comply with limits. Risk management policies and procedures are reviewed regularly so that they reflect changes in market conditions and the Group’s activities. The Group’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. Credit risk Credit risk is the risk to which the Group is exposed 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 the Group’s investments in financial assets. Trade receivables The Group does not predict any significant insolvency risks as a result of delays in receiving payment from some European countries due to their current economic situation. The main risk in these countries is that of late payments, which is mitigated through the possibility of claiming interest as foreseen by prevailing legislation. No significant bad debt or late payment issues have been detected for sales to private entities. The Group recognizes impairment based on its best estimate of the losses incurred on trade and other receivables. The main impairment losses recognized are due to specific losses relating to individually identified risks. At year end, these impairment losses are immaterial. Details of exposure to credit risk are disclosed in note 30. Liquidity risk Liquidity risk is the risk that the Group cannot meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure where possible, that it 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. The Group 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. On 6 February 2017 the Group concluded the refinancing process of its senior debt. The total debt refinanced amounts to US Dollars 6,300 million (Euros 5,800 million), including the US Dollars 1,816 million loan obtained for the acquisition of Hologic’s transfusional diagnostics unit. Following the refinancing process, Grifols’ debt structure consists in a US Dollars 6,000 million long-term loan with institutional investors and banks segmented in two tranches (Term Loan A and Term Loan B), and a US Dollars 300 million undrawn revolving credit facility. On 18 April 2017 the Group concluded the refinancing process of the Senior Unsecured Notes. The total bond issuance amounted to Euros 1,000 million. On 5 December 2017 the Group has received an additional loan from the European Investment Bank of up to Euros 85 million at a fixed interest rate for a period of ten years with a grace period of two years. The loan will be used to support certain investments in R&D which are mainly focused on searching for new applications for plasmatic proteins. On 28 October 2015, the Group received its first loan with the same entity and conditions for a total amount of Euros 100 million. At 31 December 2017, the amount in books for the loan received in 2015 is Euros 85 million. At 31 December 2017 the Group has total cash and cash equivalents of Euros 887 million (Euros 895 million at 31 December 2016). The Group also has approximately Euros 381 million in unused credit facilities, including Euros 250 million on the revolving credit facility. As in previous years, the Group continues with its quarterly program for optimization of working capital, which is mainly based on contracts to sell receivables without recourse in those countries with long collection periods. Market risk Market risk comprises the risk of changes in market prices, for example, exchange rates, interest rates, or the prices of equity instruments affecting the Group’s revenues or the value of financial instruments it holds. The objective of managing market risk is to manage and control the Group’s exposure to this risk within reasonable parameters at the same time as optimising returns. (i) Currency risk The Group 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 future commercial transactions, recognized assets and liabilities, and net investments in foreign operations. The Group holds significant investments in foreign operations, the net assets of which are exposed to currency risk. The conversion risk affecting net assets of the Group’s foreign operations in US Dollars is mitigated primarily through borrowings in this foreign currency. The Group’s main exposure to currency risk is with regard to the US Dollar, which is used in a significant percentage of transactions in foreign functional currencies. Details of the Group’s exposure to currency risk at 31 December 2017 and 2016 of the most significant financial instruments are shown in note 30. (ii) Interest rate risk The Group’s interest rate risks arise from current and non-current borrowings. Borrowings at variable interest rates expose the Group to cash flow interest rate risks. Fixed-rate borrowings expose the Group to fair value interest rate risk. The objective of the management of interest rate risk 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 through hedges. A significant part of the financing obtained accrues interest at fixed rates. This fixed interest debt (Senior Unsecured Notes) amounts to Euros 1,000 million, which represents approximately 56% of the Group’s total debt in Euros. The additional loans of Euros 170 million received from the European Investment Bank represent approximately 10% of the Group’s total debt in Euros. Senior debt in Euros represents approximately 12% of the Group’s total Senior debt at 31 December 2017 and 31 December 2016. Total fixed-interest debt represents a total of 19% of debt at 31 December 2017 (21% at 31 December 2016 considering total fixed-interest debt). (iii) Market price risk Price risk affecting raw materials is mitigated by the vertical integration of the haemoderivatives business in a highly-concentrated sector. (b) Capital management The directors’ policy is to maintain a solid capital base in order to ensure investor, creditor and market confidence and sustain future business development. The board of directors defines and proposes the level of dividends paid to shareholders. The directors consider various arguments to calculate capital structure: The directors control capital performance using rates of returns on equity (ROE). In 2017, the ROE stood at 18% (15% in December 2016). The ROE is calculated by dividing profit attributable to the Parent by the equity attributable to the Parent. Thousand of Euros 2016 2017 Profit attributable to the parent Equity attributable to the parent ROE % % · In accordance with the senior secured debt contract, the Group is subject to compliance with some covenants. At 31 December 2017 and 2016, the Group complies with the covenants. · Consideration of the Company’s credit rating (see note 20 (d)). The Parent held Class A and B treasury stock equivalent to 0.6% of its capital at 31 December 2017 (0.7% at 31 December 2016). The Group does not have a formal plan for repurchasing shares. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting | |
Segment Reporting | (6) Segment Reporting In accordance with IFRS 8 “Operating Segments”, financial information for operating segments is reported in the accompanying Appendix II, which forms an integral part of this note to the Consolidated Financial Statements. Group companies are divided into four areas: companies from the industrial area, companies from the commercial area, companies from the services area and companies from the research area. Within each of these areas, activities are organized based on the nature of the products and services manufactured and marketed. Assets, liabilities, income and expenses for segments include directly and reliably attributable items. Items which are not attributed to segments by the Group are: · Balance sheet: cash and cash equivalents, current income tax assets and liabilities, deferred tax assets and liabilities and loans and borrowings. · Statement of profit and loss: finance result and income tax. (a) Operating segments The operating segments defined by the steering committee are as follows: · Bioscience: including all activities related with products derived from human plasma for therapeutic use. · Hospital: comprising all non-biological pharmaceutical products and medical supplies manufactured by Group companies earmarked for hospital pharmacy. Products related with this business which the Group does not manufacture but markets as supplementary to its own products are also included. · Diagnostic: including the marketing of diagnostic testing equipment, reagents and other equipment, manufactured by Group or other companies. · Bio Supplies: since January 2017, the company is including all transactions related to biological products for non-therapeutic use in the new Bio Supplies Division resulting in a reclassification from Bioscience Division to Bio Supplies Division. · Others: including the rendering of manufacturing services to third party companies. As a result of the creation of the new Bio Supplies segment and Intersegments, the Group has reviewed the allocation of balances and transactions by segments. The comparative figures for years 2016 and 2015 have been restated accordingly. Details of net sales by groups of products for 2017, 2016 and 2015 are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Bioscience Haemoderivatives Diagnostic Transfusional medicine Other diagnostic Hospital Fluid therapy and nutrition Hospital supplies Bio supplies Others Total The Group has concluded that the haemoderivative products are sufficiently alike to be considered as a whole for the following reasons: · All these products are human plasma derivatives and are manufactured in a similar way. · The customers and methods used to distribute these products are similar. · All these products are subject to the same regulations regarding production and the same regulatory environment. (b) Geographical information Geographical information is grouped into four areas: · United States of America and Canada · Spain · Rest of the European Union · Rest of the world The definition of these four segments is mainly due to the geographical level that the Group sets to manage its revenue as they respond to specific economic scenarios. The main framework of the Group is consistent with this geographical segment grouping, including the monitoring of its commercial operations and its information systems. The financial information reported for geographical areas is based on sales to third parties in these markets as well as the location of assets. (c) Main customer Revenues from a Bioscience segment customer represent approximately 11.0% of the Group’s total revenues (10.7% in 2016 and 10.1% in 2015). |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill | |
Goodwill | (7) Goodwill Details of and movement in this caption of the consolidated balance sheet at 31 December 2016 are as follows: Thousands of Euros Balance at Translation Balance at Segment 31/12/2015 differences 31/12/2016 Net value Grifols UK.Ltd. (UK) Bioscience ) Grifols Italia.S.p.A. (Italy) Bioscience — Biomat USA, Inc.(USA) Bioscience Grifols Australia Pty Ltd. (Australia) / Medion Diagnostics AG (Switzerland) Diagnostic Grifols Therapeutics, Inc. (USA) Bioscience Araclon Biotech, S.L. (Spain) Diagnostic — Progenika Biopharma, S.A. (Spain) Diagnostic — Grifols Diagnostic (Novartis) (USA, Switzerland and Hong Kong) Diagnostic Details of and movement in this caption of the consolidated balance sheet at 31 December 2017 are as follows: Thousands of Euros Balance at Business Translation Balance at Segment 31/12/2016 Combination differences 31/12/2017 Net value Grifols UK.Ltd. (UK) Bioscience — ) Grifols Italia.S.p.A. (Italy) Bioscience — — Biomat USA, Inc.(USA) Bioscience ) Grifols Australia Pty Ltd. (Australia) / Medion Diagnostics AG (Switzerland) Diagnostic — ) Grifols Therapeutics, Inc. (USA) Bioscience — ) Araclon Biotech, S.L. (Spain) Diagnostic — — Progenika Biopharma, S.A. (Spain) Diagnostic — — Grifols Diagnostic (Novartis & Hologic) (USA, Spain and Hong Kong) Diagnostic ) Kiro Grifols S.L. (Spain) Hospital — — ) (See note 3) Impairment testing: As a result of the acquisition of Talecris in 2011, and for impairment testing purposes, the Group combines the CGUs allocated to the Bioscience segment, grouping them together at segment level, because substantial synergies were expected to arise on the acquisition of Talecris, and due to the vertical integration of the business and the lack of an independent organized market for the products. Because the synergies benefit the Bioscience segment globally they cannot be allocated to individual CGUs. The Bioscience segment represents the lowest level to which goodwill is allocated and is subject to control by Group management for internal control purposes. Since the acquisition of Novartis’ Diagnostic business unit in 2014, the Group combines Araclon, Progenika, Australia and recently Hologic’s share of NAT donor screening unit acquisition into a single CGU for the Diagnostic business as the acquisition is supporting not only the vertically integration business but also cross-selling opportunities. In addition, for management purposes, the Group’s management is focused on the business more than geographical areas or individual companies. Due to the acquisition of an additional 40% stake of Kiro Grifols S.L., the Group has decided to group Kiro Grifols S.L. and Laboratorios Grifols S.L. into a single CGU for the Hospital business since the acquisition is supporting cross-selling opportunities. The CGUs established by Management are: · Bioscience · Diagnostic · Hospital The recoverable amount of the Bioscience CGU was calculated based on its value in use calculated as the present value of the future cash flows discounted at a discount rate considering the related inherent risk. The recoverable amount of the Diagnostic CGU was calculated based on its fair value less costs of disposal calculated as the present value of the future cash flows discounted at a discount rate considering the related inherent risk. The recoverable amount of the Hospital CGU was calculated based on its fair value less costs of disposal calculated as the present value of the future cash flows discounted at a discount rate considering the related inherent risk. This value in use and fair value less costs of disposal calculations use cash flow projections for five years based on the financial budgets approved by management. Cash flows estimated as of the year in which stable growth in the CGU has been reached are extrapolated using the estimated growth rates indicated below. The key assumptions used in calculating impairment of the CGUs for 2016 were as follows: Perpetual Growth rate Pre-tax discount rate Bioscience % % Diagnostic % % The key assumptions used in calculating impairment of the CGUs for 2017 have been as follows: Perpetual Growth rate Pre-tax discount rate Bioscience % % Diagnostic % % Hospital % % Management determined budgeted gross margins based on past experience, investments in progress which would imply significant growth in production capacity and its forecast international market development. Perpetual growth rates are coherent with the forecasts included in industry reports. The discount rate used reflects specific risks related to the CGU. As the acquisition of Hologic’s NAT donor screening unit share and the acquisition for an additional stake of Kiro Grifols S.L. are recent transactions and as the recoverable amount of the Bioscience CGU is much higher than the carrying amount of the Bioscience segment’s net assets, specific information from the impairment test sensitivity analysis is not included. At 31 December 2017 Grifols’ stock market capitalization totals Euros 15,379 million (Euros 12,020 million at 31 December 2016). |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Intangible Assets | |
Other Intangible Assets | (8) Other Intangible Assets Details of other intangible assets and movement during the years ended 31 December 2017 and 2016 are included in Appendix III, which forms an integral part of these notes to the Consolidated Financial Statements. Intangible assets acquired from Talecris mainly include currently marketed products. Identifiable intangible assets correspond to Gamunex and have been recognized at fair value at the acquisition date of Talecris and classified as currently marketed products. Intangible assets recognized comprise the rights on the Gamunex product, its commercialization and distribution license, trademark, as well as relations with hospitals. Each of these components are closely linked and fully complementary, are subject to similar risks and have a similar regulatory approval process. Intangible assets acquired from Progenika mainly include currently marketed products. Identifiable intangible assets correspond to blood, immunology and cardiovascular genotyping. These assets have been recognized at fair value at the acquisition date of Progenika and classified as currently marketed products. The cost and accumulated amortization of currently marketed products acquired from Talecris and Progenika at 31 December 2016 is as follows: Thousands of Euros Balance at Translation Balance at 31/12/2015 Additions differences 31/12/2016 Cost of currently marketed products - Gamunex — Cost of currently marketed products - Progenika — — Accumulated amortisation of currently marketed products - Gamunex ) ) ) ) Accumulated amortisation of currently marketed products - Progenika ) ) — ) Carrying amount of currently marketed products ) The cost and accumulated amortization of currently marketed products acquired from Talecris and Progenika at 31 December 2017 is as follows: Thousands of Euros Balance at Translation Balance at 31/12/2016 Additions differences 31/12/2017 Cost of currently marketed products - Gamunex — ) Cost of currently marketed products - Progenika — — Accumulated amortisation of currently marketed products - Gamunex ) ) ) Accumulated amortisation of currently marketed products - Progenika ) ) — ) Carrying amount of currently marketed products ) ) The estimated useful life of the currently marketed products acquired from Talecris is considered limited, has been estimated at 30 years on the basis of the expected life cycle of the product (Gamunex) and is amortized on a straight-line basis. At 31 December 2017 the residual useful life of currently marketed products is 23 years and 5 months (24 years and 5 months at 31 December 2016). The estimated useful life of the currently marketed products acquired from Progenika is considered limited, has been estimated at 10 years on the basis of the expected life cycle of the product and is amortized on a straight-line basis. At 31 December 2017 the residual useful life of currently marketed products acquired from Progenika is 5 years and 2 months (6 years and 2 months at 31 December 2016). (a) Self — constructed intangible assets At 31 December 2017 the Group has recognized Euros 49,782 thousand as self-constructed intangible assets (Euros 29,034 thousand at 31 December 2016). (b) Purchase commitments At 31 December 2017 the Group has intangible asset purchase commitments amounting to Euros 1,199 thousand (Euros 639 thousand at 31 December 2016). (c) Intangible assets with indefinite useful lives and other intangible in progress At 31 December 2017 the Group has plasma center licenses with indefinite useful lives under intangible assets for a carrying amount of Euros 26,631 thousand (Euros 30,075 thousand at 31 December 2016). The Group has also an amount of Euros 183,281 thousand as development costs in progress (Euros 52,272 thousand at 31 December 2016). The main variance corresponds to the assets acquired from Hologic’s business combination (see note 3(a)). The Group has recognized an amount of Euros 4,235 thousand corresponding to payments relating to license rights due to the Aradigm acquisition (no amount was recognized at 31 December 2016). (d) Result on disposal of intangible assets Total losses incurred on disposals of intangible assets in 2017 amount to Euros 83 thousand (Euros 7,198 thousand of profit in 2016). (e) Impairment testing Indefinite-lived intangible assets have been allocated to the cash-generating unit (CGU) of the Bioscience segment. These assets have been tested for impairment together with goodwill (see note 7). Impairment testing has been analyzed for each of the intangible assets in progress by calculating its recoverable amount based on their fair value. As the Antimicrobial Drugs Advisory Committee of the US Food and Drug Administration did not recommend the approval for Linahie TM as a treatment for non-cystic fibrosis bronchiectasis patients with chronic lung Pseudomonas aeruginosa infections, the intangible assets referred to it have been totally impaired. As a consequence, the group has impaired a total amount of Euros 63,675 thousand related to this product. This amount has been recognized in the Profit and Loss Statement as a R&D expense. Even that, the company has impaired the investment in this company and the convertible bonds (see notes 10 and 11(a)). |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | (9) Property, Plant and Equipment Details of property, plant and equipment and movement in the consolidated balance sheet at 31 December 2017 and 2016 are included in Appendix IV, which forms an integral part of this note to the Consolidated Financial Statements. Property, plant and development under construction at 31 December 2017 and 2016 mainly comprise investments made to extend the companies’ equipment and to increase their productive capacity. In 2017, the Group has capitalized interests for a total amount of Euros 8,839 thousand (Euros 13,019 thousand in 2016) a) Insurance Group policy is to contract sufficient insurance coverage for the risk of damage to property, plant and equipment. At 31 December 2017 the Group has a combined insurance policy for all Group companies, which more than adequately covers the carrying amount of all the Group’s assets. b) Losses on disposal of property, plant and equipment Total losses incurred on disposals of property, plant and equipment for 2017 amount to Euros 1,468 thousand (Euros 4,021 thousand in 2016). c) Assets under finance lease The Group contracted the following types of property, plant and equipment under finance leases at 31 December 2016: Thousands of Euros Cost Accumulated Carrying amount Land and buildings ) Plant and machinery ) ) The Group has contracted the following types of property, plant and equipment under finance leases at 31 December 2017: Thousands of Euros Cost Accumulated Carrying amount Land and buildings ) Plant and machinery ) ) Details of minimum lease payments and the present value of finance lease liabilities, disclosed by maturity date, are detailed in note 20 (c). d) Self – constructed property, plant and equipment At 31 December 2017 the Group has recognized Euros 52,218 thousand as self -constructed property, plant and equipment (Euros 68,529 thousand at 31 December 2016). e) Purchase commitments At 31 December 2017 the Group has property, plant and equipment purchase commitments amounting to Euros 39,675 thousand (Euros 39,773 thousand at 31 December 2016). f) Impairment A group of assets forming part of the Hospital segment has been tested for impairment due to the decrease in the results of the segment and no impairment has been observed. The recoverable amount of the aforementioned assets is calculated based on the fair value less cost of disposal, using cash flow projections based on five-year financial budgets approved by management. Cash flows estimated as of the year in which stable growth has been reached by the assets are extrapolated using a pre-tax discount rate of 12.2% and a perpetual growth rate of 2% (10.3% and 2% respectively in fiscal year 2016). |
Equity Accounted Investees
Equity Accounted Investees | 12 Months Ended |
Dec. 31, 2017 | |
Equity Accounted Investees | |
Equity Accounted Investees | (10) Equity Accounted Investees Details of this caption in the consolidated balance sheet at 31 December 2017 and 2016 are as follows: Thousands of Thousands of % ownership 31/12/2017 % ownership 31/12/2016 Aradigm Corporation % — % Kiro Grifols, S.L (see note 3(b)) % — % Alkahest, Inc. % % Albajuna Therapeutics, S.L % % Interstate Blood Bank, Inc. % % Bio Blood Components Inc. % % Plasma Biological Services, LLC % % Singulex, Inc. % % GigaGen, Inc % — — Access Biologicals LLC % — — Aigües de Vilajuïga S.A. % — — — Movement in the investments in equity-accounted investees for the years ended at 31 December 2017, 2016 and 2015 have been as follows: Thousands of Euros 2017 2016 2015 Balance at 1 January Acquisitions Transfers ) ) — Share of profit / (losses) ) ) Share of other comprehensive income / translation differences ) Losses for Impairment ) — — Collected dividends — — ) Balance at 31 December GigaGen Inc. On 5 July 2017, Grifols through its 100% subsidiary Grifols Innovation and New Technologies Limited (“GIANT”), has acquired a 43.96% shareholding in GigaGen, Inc., a company based in San Francisco (USA) for the amount of US Dollars 35 million. GIANT and GigaGen have also entered into a Research and Collaboration Agreement whereby in exchange of a collaboration fee of US Dollars 15 million in the aggregate, GigaGen will commit to carry out research activities to develop recombinant polyclonal immunoglobulin therapies derived from human B cells for the treatment of human diseases. The summarized financial information of GigaGen, Inc. corresponding to the last available financial statements is included below with the carrying amount of the Group’s interest. Information regarding the income statement is included only from the date of acquisition of the participation. Thousand of Euros Thousand of USD 31/12/2017 31/12/2017 Non-current assets Current assets Current liabilities ) ) Total net assets (100%) Group’s share of net assets (43.96%) Profit from continuing operations (100%) ) ) Group’s share of total comprehensive income (43.96%) ) ) A reconciliation of the summarized financial information with the carrying amount of the Group’s interest is as follows: Thousand of Euros 31/12/2017 Group’s share of net assets Goodwill of equity method investment Equity method accounted investment Movement in Gigagen’s equity-accounted investment for the year ended 31 December 2017 is as follows: Thousand of Euros 31/12/2017 Balance at 1 January — Acquisitions Share of profit / (losses) ) Share of other comprehensive income / translation differences ) Impairment Losses ) Balance at 31 December Access Biologicals LLC. On 12 January 2017, the group has announced the acquisition of 49% of the voting rights in Access Biologicals LLC, a company based in San Diego, California, USA, for the amount of US Dollar 51 million. Grifols has entered into an option agreement to purchase the remaining 51% voting rights in five years, in 2022. Grifols has also signed a supply agreement to sell to Access Biologicals biological products not meant for therapeutic use. The principal business activity of Access Biologicals is the collection and manufacturing of an extensive portfolio of biologicals products. Combined with closed-loop material sourcing, it provides critical support for various markets such as in-vitro diagnostic manufacturing, biopharmaceutical, cell culture and diagnostic research & development. The summarized financial information of Access Biologicals LLC corresponding to the last available financial statements is included below with the carrying amount of the Group’s interest. Information regarding the income statement is included only from the date of acquisition of the participation. Thousand of Euros Thousand of USD 31/12/2017 31/12/2017 Non-current assets Current assets Non-current liabilities ) ) Current liabilities ) ) Total net assets (100%) Group’s share of net assets (49%) Profit from continuing operations (100%) Group’s share of total comprehensive income (49%) A reconciliation of the summarized financial information with the carrying amount of the Group’s interest is as follows: Thousand of Euros 31/12/2017 Group’s share of net assets Goodwill of equity method investment Equity method accounted investment Movement in Access Biological’s equity-accounted investment for the year ended 31 December 2017 is as follows: Thousand of Euros 31/12/2017 Balance at 1 January — Acquisitions Share of profit / (losses) Share of other comprehensive income / translation differences ) Balance at 31 December Aradigm As the Antimicrobial Drugs Advisory Committee of the US Food and Drug Administration did not recommend the approval for LinahiqTM as a treatment for non-cystic fibrosis bronchiectasis patients with chronic lung Pseudomonas aeruginosa infections, the investment in Aradigm have been totally impaired. Consequently, the investment in Aradigm has been fully impaired for an amount of Euros 5,836 thousand in the statement of profit and loss. Movement in the investment in Aradigm for the year ended 31 December 2017 and 31 December 2016 is as follows: Thousand of Euros 31/12/2017 31/12/2016 Balance at 1 January Share of profit / (losses) ) ) Share of other comprehensive income / translation differences ) Impairment losses ) — Balance at 31 December — Singulex, Inc. On 17 May 2016 Grifols subscribed and paid a capital increase for an amount of US Dollars 50 million (Euros 44,107 thousand) in the US company Singulex, Inc. (“Singulex”). As a result, Grifols held a 20% (19.33% at December 2017) common stock interest in Singulex on a fully diluted basis at a pre-money valuation of US Dollars 200 million. Grifols will be entitled to appoint a director to serve the board of directors of Singulex. As a result, Singulex granted Grifols an exclusive worldwide license for the use and sale of Singulex’s technology for the blood donor and plasma screening to further ensure the safety of blood and plasma products. Movement in Singulex, Inc.’s equity-accounted investment for the years ended 31 December 2016 and December 2017 is as follows: Thousand of Euros 31/12/2017 31/12/2016 Balance at 1 January — Acquisitions — Share of profit / (losses) ) ) Share of other comprehensive income / translation differences ) Balance at 31 December Interstate Blood Bank, Inc., Bio-Blood Components, Inc. and Plasma Biological Services, LIc. On 11 May 2016 Grifols acquired a 49.19% stake in Interstate Blood Bank, Inc. (IBBI), 48.97% of Bio-Blood Components, Inc. (Bio-Blood) and 48.90% of Plasma Biological Services, LLC (PBS) (“IBBI Group”), a group based in Memphis, TN, USA, for the price of US Dollars 100 million (Euros 88,215 thousand). GWWO also entered into an option agreement to purchase the remaining stakes for a price of US Dollars 100 million for an option price of US Dollars 10 million (Euros 9,007 thousand) (see notes 11 and 30). The purchase price and the call right were paid upon signature of the contract. The principal business activity of IBBI and its affiliates is the collection of plasma for the plasma fractionation industry, with 23 plasma collection centers, 9 blood donation centers and one laboratory. Movement in Interstate Blood Bank, Inc., Bio-blood Components, Inc. and Plasma Biological Services, LLC.’s equity-accounted investment for the years ended 31 December 2016 and 2017 is as follows: Thousands of Euros Thousands of Euros 31/12/2017 31/12/2016 IBBI Bio-Blood PBS IBBI Bio-Blood PBS Balance at 1 January — — — Acquisitions — — — Share of profit / (losses) ) ) Share of other comprehensive income / translation differences ) ) ) Balance at 31 December Albajuna Therapeutics, S.L In January 2016, Grifols acquired 30% of the equity of AlbaJuna Therapeutics, S.L. for Euros 3.75 million in the form of a cash payment to finance the development and production of therapeutic antibodies against HIV. The initial investment will be increased upon achievements of agreed development milestones through two payments for a total amount of Euros 7.25 million. AlbaJuna Therapeutics is a spin-off from the AIDS Investigation Institute IrsiCaixa, jointly driven by Obra Social “la Caixa” and the Generalitat de Catalunya’s Department of Health. It was founded to promote the preclinical and clinical development of monoclonal antibodies that both neutralize the HIV action in the human body and increase the activity of natural killer cells, which are responsible for the destruction of infected cells. Kiro Grifols, S.L. On 25 July 2017 the Group subscribed a capital increase in Kiro Grifols, S.L (formerly Kiro Robotics, S.L.) for an amount of Euros 12.8 million, which represents 40% of the voting and economic rights of Kiro Grifols. With this new operation, Grifols owns a total of 90% of the voting and economic rights of Kiro Grifols S.L., which is now considered part of the group, and starts using the global consolidation method instead of the equity method (see note 3(b)). |
Financial Assets
Financial Assets | 12 Months Ended |
Dec. 31, 2017 | |
Financial Assets | |
Financial Assets | (11) Financial Assets Details of non-current financial assets on the consolidated balance sheet at 31 December 2017 and 2016 are as follows: Thousands of Euros 31/12/2017 31/12/2016 Convertible Bond (a) — Non-current derivatives (b) (see note 30) Non-current investment in quoted shares (see note 30) Total Non-current financial assets measured at fair value Convertible Bond (a) — Non-current guarantee deposits Other non-current financial assets Non-current loans to EEAA (c) (see note 31) — Total Non-current financial assets measured at amortized cost Details of other current financial assets on the consolidated balance sheet at 31 December 2017 and 2016 are as follows: Thousands of Euros 31/12/2017 31/12/2016 Deposits and guarantees Current loans to third parties Current loans to associates (see note 31) Total other current financial assets (a) Convertible Bond On 22 April 2016, the Group’s subsidiary, Grifols Worldwide Operations Limited, subscribed convertible bonds for an amount of US Dollars 19,950 thousand (Euros 17,997 thousand) issued by Aradigm that bear at an interest rate of 9% and mature in 2021. The Group indirectly owns 35.13% of the common stock of Aradigm. Interest on the convertible bonds is payable on 1 May and 1 November of each year. At the date of these Consolidated Financial Statements Aradigm has paid the Group an amount of Euros 1,601 thousand on the convertible bonds (Euros 839 thousand at 31 December 2016). Upon the events described in the indenture governing the convertible bonds, the convertible bonds are convertible into common stock of Aradigm. At the date of these Consolidated Financial Statements, the conversion rate is 191.94 shares of Aradigm common stock per US Dollar 1,000 principal amount of convertible bonds. As mentioned in note 8 (a), as the Antimicrobial Drugs Advisory Committee of the US Food and Drug Administration did not recommend approval for Linahiq TM as a treatment for non-cystic fibrosis bronchiectasis patients with chronic lung Pseudomonas aeruginosa infections, the Group has decided to impair all the financial assets referred to it. As a consequence, the financial assets related to the convertible bond of Aradigm have been impaired for a total amount of Euros 14,477 thousand (see note 26). This amount has been recognized in the Profit or Loss Statement as a financial result. On February 2, 2017 Grifols Worldwide Operations Limited sold to Nomura International PLC the convertible bonds issued by TiGenix that the Group subscribed on March 6, 2015. The settlement amount was Euros 20.5 million resulting in a loss of Euros 5.5 million. (b) Non-current derivatives Non-current derivatives includes an amount of Euros 8,338 thousand in respect of the call right for the Interstate Blood Bank, Inc. shares, Bio-Blood Components, Inc. shares and Plasma Biological Services, LLC. units that are not owned by the Group. The call right can be exercised by the Group by delivering written notice of its intention at any time on or after February 1, 2019 and on or before April 30, 2019 (see note 11 (a)). On December 31, 2017 the implicit derivative to the right of the convertible bond of Aradigm have been totally impaired due to the resolution of the Antimicrobial Drugs Advisory Committee of the US Food and Drug Administration. As a consequence, it has been recognized a financial impairment in the Profit and Loss Statement for a total amount of Euros 3,672 thousand. (c) Non-current loans to EEAA On 2 October 2017 the Group’s subsidiary Grifols Diagnostic Solutions, Inc. subscribed notes for an amount of US Dollars 20,000 thousand (Euros 16,676 thousand) issued by Singulex, Inc., that bear at an interest rate of 5% and mature in September 19, 2019. The Group indirectly owns 19.33 % of the common stock of Singulex Inc. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Inventories | (12) Inventories Details of inventories at 31 December 2017 and 2016 are as follows: Thousands of Euros 31/12/2017 31/12/2016 Goods for resale Raw materials and supplies Work in progress and semi-finished goods Finished goods Movement in the inventory provision was as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Balance at 1 January Net charge for the year Cancellations for the year ) ) ) Translation differences ) Balance at 31 December |
Trade and Other Receivables
Trade and Other Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and Other Receivables | |
Trade and Other Receivables | (13) Trade and Other Receivables Details at 31 December 2017 and 2016 are as follows: Thousands of Euros 31/12/2017 31/12/2016 Trade receivables Receivables from associates (note 31) Bad debt provision (note 30) ) ) Trade receivables Other receivables (note 30) Personnel Advance payments (note 30) Taxation authorities, VAT recoverable Other public entities Other receivables Current income tax assets Other receivables During 2017, 2016 and 2015 certain companies of the Grifols Group have sold receivables from several public entities, without recourse, to certain financial institutions. Under some of these contracts, the Group receives an initial payment which usually amounts to 90% of the nominal amount of the receivables sold less the associated sale and purchase costs. The deferred collection (equivalent to the rest of the nominal amount) will be made by the Group once the financial institution has collected the nominal amount of the receivables (or the interest, if the balances are received after more than 36 months, depending on the terms of each particular contract) and this amount is recognized in the consolidated balance sheet as a balance receivable from the financial institution. The deferred amount (equivalent to the continuing involvement) totals Euros 1,800 thousand at 31 December 2017 (Euros 2,560 thousand at 31 December 2016), which does not differ significantly from its fair value and coincides with the amount of maximum exposure to losses. The financial institution makes the initial payment when the sale is completed and therefore, the bad debt risk associated with this part of the nominal amount of the receivables is transferred. The Group has transferred the credit risk and control of the receivables to certain financial institutions and has therefore derecognized the asset transferred in the consolidated balance sheet, as the risks and rewards inherent to ownership have not been substantially retained. Certain foreign Group companies have also entered into a contract to sell receivables without recourse to various financial institutions. Total balances receivable without recourse sold to financial institutions through the aforementioned contracts in 2017 amount to Euros 912 million (Euros 870 million in 2016). The finance cost of these operations for the Group totals approximately Euros 3,973 thousand which has been recognized under finance result in the consolidated statement of profit and loss for 2017 (Euros 4,885 thousand in 2016 and Euros 6,512 thousand in 2015) (see note 26). Details of balances with related parties are shown in note 31. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents | (14) Cash and Cash Equivalents Details of this caption of the consolidated balance sheet at 31 December 2017 and 2016 are as follows: Thousands of Euros 31/12/2017 31/12/2016 Current deposits Cash in hand and at banks Total cash and cash equivalents |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity | |
Equity | (15) Equity Details of consolidated equity and movement are shown in the consolidated statement of changes in equity. (a) Share capital At 31 December 2017 and 2016, the Company’s share capital amounts to Euros 119,603,705 and comprises: · 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. · Class B shares: 261,425,110 non-voting preference shares of 0.05 Euros par value each, of the same class and series, and with the preferential rights set forth in the Company’s by-laws. On 4 January 2016 the Company’s new shares resulting from the share split ruling on 3 December 2015 by the Company’s board of directors started to be traded in accordance with the delegation of authorities by the shareholders at the general shareholders’ meeting held on 29 May 2015. 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 a distribution of dividends has been approved by the Company’s shareholders. This preferred dividend is not cumulative if sufficient distributable profits are not obtained in the period. · Each Class B share is entitled to receive, in addition to the above-mentioned preferred dividend, the same dividends and other distributions as for one Grifols 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. Since 23 July 2012 the ADSs (American Depositary Shares) representing Grifols’ Class B shares (non-voting shares) have had an exchange ratio of 1:1 in relation to Class B shares, ie.1 ADS represents 1 Class B share. The previous rate was 2 ADS per 1 Class B share. 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 representing more than 10% of the Company’s total capital at 31 December 2017 and 2016. At 31 December 2017 and 2016, the number of outstanding shares is equal to the total number of Company shares, less treasury stock. Movement in outstanding shares during 2016 is as follows: Class A shares Class B shares Balance at 1 January 2016 (Acquisition) / disposal of treasury stock (note 15 (d)) — ) Balance at 31 December 2016 Movement in outstanding shares during 2017 is as follows: Class A shares Class B shares Balance at 1 January 2017 (Acquisition) / disposal of treasury stock (note 15 (d)) — Balance at 31 December 2017 (b) Share premium Movement in the share premium is described in the consolidated statement of changes in equity, which forms an integral part of this note to the Consolidated Financial Statements. (c) Reserves The drawdown of accumulated gains is subject to legislation applicable to each of the Group companies. At 31 December 2017, Euros 40,061 thousand equivalent to the carrying amount of development costs pending amortization of certain Spanish companies (Euros 50,680 thousand at 31 December 2016) (see note 8) are, in accordance with applicable legislation, restricted reserves which cannot be distributed until these development costs have been amortized. In May 2015 the company sold 1,967,265 treasury stocks (Class A Shares), generating a profit of Euros 2 million, recognized in reserves. In June 2015 Araclon Biotech, S.L. increased capital by an amount of Euros 6 million. As a result, the Group has increased its investment from 66.15% to 70.83%. The difference between the share capital increase carried out by the Group and the non-controlling interest had been recognized as a Euros 1.77 million decrease in reserves. In July 2016 the Group acquired an additional 20% of the assets of Medion Diagnostics AG in exchange for 59,951 treasury stocks (Class B Shares) from its non-controlling interests. After these capital increases, Grifols’ interest rose to 100% in 2016. The difference between the share capital increase carried out by the Group and the non-controlling interest was recognized as a Euros 0.6 million decrease in reserves. In August 2016 Araclon Biotech, S.L. increased capital by an amount of Euros 6.7 million. As a result, the Group increased its investment from 70.83% to 73.22%. The difference between the share capital increase carried out by the Group and the non-controlling interest was recognized as a Euros 1.7 million decrease in reserves. On 12 December 2016, the Group subscribed a share capital increase in the capital of VCN Biosciences, S.L. of Euros 5 million. After this capital increase, Grifols interest rose to 81.34% in 2016. The difference between the share capital increase carried out by the Group and the non-controlling interest was recognized as a Euros 1 million decrease in reserves. In October 2017, the Group acquired 12,020 Progenika Biopharma, S.A. shares As a result, the Group has increased its investment from 89.25% to 90.23%. The difference between the share capital increase carried out by the Group and the non-controlling interest has been recognized as a Euros 374 thousand decrease in reserves. At 31 December 2017 and 2016 reserves include the IFRS-EU first-time adoption revaluation reserves and legal reserve of certain Group companies. Legal reserve Companies in Spain are obliged to transfer 10% of each year’s profits to a legal reserve until this reserve reaches an amount equal to 20% of share capital. This reserve is not distributable to shareholders and may only be used to offset losses if no other reserves are available. Under certain conditions it may be used to increase share capital provided that the balance left on the reserve is at least equal to 10% of the nominal value of the total share capital after the increase. At 31 December 2017 and 2016 the legal reserve of the Company amounts to Euros 23,921 thousand. Distribution of the legal reserves of Spanish companies is subject to the same restrictions as those of the Company and at 31 December 2017 the balance of the legal reserve of other Spanish companies amounts to Euros 2,416 thousand (Euros 1,485 thousand at 31 December 2016). Other foreign Group companies have a legal reserve amounting to Euros 731 thousand at 31 December 2017 (Euros 650 thousand at 31 December 2016). (d) Treasury stock At 31 December 2017 and December 2016 the Company does not have any Class A treasury stock. Movement in Class B treasury stock during 2016 is as follows: No. of Class B shares Thousands of Euros Balance at 1 January 2016 Acquisition of Class B shares Non Cash Disposal Class B shares ) ) Balance at 31 December 2016 In July 2016 the Company delivered 59,951 treasury stocks (Class B Shares) to Medion’s non-controlling interests in exchange for the 20% acquired from them. In March 2016 the Company delivered 876,777 treasury stocks (Class B Shares) to Progenika’s non-controlling interests in exchange for the 16.46% acquired from them (see note 2(b)). Class B share acquisitions included the purchase of the Class B shares from the vendor shareholders of Progenika for which Grifols exercised the cash option for an amount of Euros 11,035 thousand. This amount had been considered as cash used in investing activities in the statement of cash flows Movement in Class B treasury stock during 2017 is as follows: No. of Class B shares Thousands of Euros Balance at 1 January 2017 Disposal Class B shares ) ) Balance at 31 December 2017 In March 2017 the company delivered 432,929 treasury stocks (Class B shares) to eligible employees as a compensation of the Restricted Share Unit Retention Plan (see note 29). The Parent held Class B treasury stock equivalent to 0.6% of its capital at 31 December 2017 (0.7% at 31 December 2016). (e) Distribution of profit The profits of Grifols, S.A. and subsidiaries will be distributed as agreed by respective shareholders at their general meetings. The proposed distribution of profit of the Parent Grifols, S.A. for the years ended 31 December 2017, and the distribution approved for 2016, presented at the general meeting held on 26 May 2017, is as follows: Thousands of Euros 31/12/2017 31/12/2016 Legal Reserve — — Voluntary reserve Dividends Profit of the Parent The following dividends were paid in 2016: 31/12/2016 % of par value Euros per share Thousands of Euros Ordinary shares % Non-voting shares % Non-voting shares (preferred dividend) % Total dividends paid 31/12/2016 % of par value Euros per share Thousands of Euros Ordinary shares (interim dividend) % Non-voting shares (interim dividend) % Total interim dividends paid The following dividends were paid in 2017: 31/12/2017 % of par value Euros per share Thousands of Euros Ordinary shares % Non-voting shares % Non-voting shares (preferred dividend) % Total dividends paid 31/12/2017 % of par value Euros per share Thousands of Euros Ordinary shares (interim dividend) % Non-voting shares (interim dividend) % Total interim dividends paid At the meeting held on 27 October 2017, the Board of Directors of Grifols approved the distribution of interim dividend for 2017 of Euros 0.18 for each Class A and B share, recognizing a total of Euros 122,986 thousand as interim dividend. At the meeting held on 28 October 2016, the Board of Directors of Grifols approved the distribution of interim dividend for 2016 of Euros 0.18 for each Class A and B share, recognizing a total of Euros 122,908 thousand as interim dividend. These amounts to be distributed did not exceed the profits generated by the Company since the end of the last reporting period, less the estimated income tax payable on these profits, in accordance with article 277 of the Revised Spanish Companies Act. The Statement of Liquidity for Distribution of Interim Dividend of Grifols, S.A. prepared in accordance with legal requirements and which shows the existence of sufficient liquidity to be able to distribute the aforementioned interim dividend is provided in Appendix V. At a general meeting held on 26 May 2017 the shareholders approved the distribution of a preferred dividend of Euros 0.01 for every Class B non-voting share. The distribution of the profit for the years ended 31 December 2016 and 2017 is presented in the consolidated statement of changes in equity. (f) Restricted Share Unit Compensation The Group has set up a Restricted Share Unit Retention Plan (hereinafter RSU Plan) for certain employees (see note 29). This commitment will be settled using equity instruments and the cumulative accrual amounts to Euros 13,871 thousand (Euros 7,946 thousand in 2016). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share | |
Earnings Per Share | (16) Earnings Per Share The calculation of basic earnings per share is based on the profit for the year attributable to the shareholders of the Parent divided by the weighted average number of ordinary shares in circulation throughout the year, excluding treasury stock. Details of the calculation of basic earnings per share are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Profit for the year attributable to shareholders of the Parent (thousands of Euros) Weighted average number of ordinary shares outstanding Basic earnings per share (Euros per share) The weighted average of the ordinary shares outstanding (basic) has been calculated taking into consideration the share split carried out on 4 January 2016 as follows: Number of shares 31/12/2017 31/12/2016 31/12/2015 Issued shares outstanding at 1 January 683,854,491 Effect of shares issued — — — Effect of treasury stock ) ) Average weighted number of ordinary shares outstanding (basic) at 31 December Diluted earnings per share are calculated by dividing profit for the year attributable to shareholders of the Parent by the weighted average number of ordinary shares in circulation considering the diluting effects of potential ordinary shares. The RSU Plan granted by the Group and payable in shares, assumes the existence of dilutive potential shares. Diluted earnings per share have been calculated as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Profit for the year attributable to shareholders of the Parent (thousands of Euros) Weighted average number of ordinary shares outstanding (diluted) Diluted earnings per share (Euros per share) The weighted average number of ordinary shares outstanding diluted has been calculated as follows: Number of shares 31/12/2017 31/12/2016 31/12/2015 Issued shares outstanding at 1 January Effect of RSU shares Effect of shares issued — — — Effect of treasury stock ) ) Average weighted number of ordinary shares outstanding (diluted) at 31 December |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Non-Controlling Interests | |
Non-Controlling Interests | (17) Non-Controlling Interests Details of non-controlling interests and movement at 31 December 2016 are as follows: Thousands of Euros Balance at Additions Disposals Capital increases Translation Balance at Grifols (Thailand) Pte Ltd ) — Grifols Malaysia Sdn Bhd — — ) Araclon Biotech, S.A. ) — — Medion Grifols Diagnostic AG ) — — — — GRI-CEI S/A Productos para transfusao — ) — — — Progenika Biopharma, S.A. — — ) Brainco Biopharma, S.L. ) — — — — Abyntek Biopharma, S.L. ) — — — ) VCN Bioscience, S.L ) ) — — ) ) (see note 2(b)) Details of non-controlling interests and movement at 31 December 2017 are as follows: Thousands of Euros Balance at Additions Disposals Business Translation Balance at Grifols (Thailand) Pte Ltd ) — ) Grifols Malaysia Sdn Bhd — — ) Araclon Biotech, S.A. ) — — — ) Progenika Biopharma, S.A. ) ) — Abyntek Biopharma, S.L. ) — — — VCN Bioscience, S.L ) — — — Kiro Grifols , S.L. — ) — — ) ) ) |
Grants
Grants | 12 Months Ended |
Dec. 31, 2017 | |
Grants | |
Grants | (18) Grants Details are as follows: Thousands of Euros 31/12/2017 31/12/2016 Capital grants Interest rate grants (preference loans) (See note 20 ( e)) Interest-rate grants (preference loans) reflect the implicit interest on loans extended by the Spanish Ministry of Science and Technology as these are interest free. Grants of Euros 323 thousand have been transferred to the consolidated statement of profit and loss during the year ended 31 December 2017 (Euros 1,154 thousand at 31 December 2016 and Euros 1,227 thousand at 31 December 2015). |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
Provisions | |
Provisions | (19) Provisions Details of provisions at 31 December 2017 and 2016 are as follows: Thousands of Euros 31/12/2017 31/12/2016 Non-current provisions (a) Provisions for pensions and similar obligations Other provisions Non-current provisions Thousands of Euros 31/12/2017 31/12/2016 Current provisions (b) Trade provisions Current provisions (a) Non-current provisions At 31 December 2017, 2016 and 2015 provisions for pensions and similar obligations mainly comprise a provision made by certain foreign subsidiaries in respect of labor commitments with certain employees. Movement in provisions during 2015 is as follows: Thousand s of Euros Balance at Net Charge Cancellations Reclassifications Translation Balance at Non-current provisions ) ) ) ) ) ) Movement in provisions during 2016 is as follows: Thousands of Euros Balance at Net Charge Cancellations Reclassifications Translation Balance at Non-current provisions ) ) ) ) Movement in provisions during 2017 is as follows: Thousands of Euros Balance at Business Net Charge Cancellations Reclassifications Translation Balance at Non-current provisions ) ) ) ) (b) Current provisions Movement in trade provisions during 2015 is as follows: Thousands of Euros Balance at Net Charge Cancellations Reclasifications Translation Balance at Trade provisions ) ) ) ) Movement in trade provisions during 2016 is as follows: Thousands of Euros Balance at Net Charge Cancellations Translation Balance at Trade provisions ) ) ) ) Movement in trade provisions during 2017 is as follows: Thousands of Euros Balance at Business Net Charge Cancellations Reclasifications Translation Balance at Trade provisions ) ) ) ) ) ) ) ) (See note 3(a)) |
Financial Liabilities
Financial Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Financial Liabilities | |
Financial Liabilities | (20) Financial Liabilities This note provides information on the contractual conditions of the loans obtained by the Group, which are measured at amortized cost. For further information on exposure to interest rate risk, currency risk and liquidity risk and the fair values of financial liabilities, please refer to note 30. Details at 31 December 2017 and 2016 are as follows: Thousands of Euros Financial liabilities 31/12/2017 31/12/2016 Non-current obligations (a) Senior secured debt (b) Other loans (b) Finance lease liabilities (c) Other non-current financial liabilities (e) Total non-current financial liabilities Current obligations (a) Senior secured debt (b) Other loans (b) Finance lease liabilities (c) Other current financial liabilities (e) Total current financial liabilities On 06 February 2017 the Group concluded the refinancing process of its senior debt. The total debt refinanced amounts to US Dollars 6,300 million (Euros 5,800 million), including the US Dollars 1,816 million loan obtained for the acquisition of Hologic’s transfusional diagnostics unit. Following the refinancing process, Grifols’ debt structure consists in a US Dollars 6,000 million long-term loan with institutional investors and banks segmented in two tranches (Term Loan A and Term Loan B), and a US Dollars 300 million undrawn revolving credit facility. On 18 April 2017 the Group concluded the refinancing process of the Senior Unsecured Notes. The total bond issuance amounted to Euros 1,000 million. On 5 December 2017 the Group has received an additional loan from the European Investment Bank of up to Euros 85 million at a fixed interest rate for a period of ten years with a grace period of two years. The loan will be used to support certain investments in R&D which are mainly focused on searching for new applications for plasmatic proteins. On 28 October 2015, the Group received its first loan with the same entity and conditions for a total amount of Euros 100 million. (a) Senior Unsecured Notes On 18 April 2017, Grifols, S.A., issued Euros 1,000 million Senior Unsecured Notes (the “Notes”) that will mature in 2025 and will bear annual interest at a rate of 3.20%. These notes replaced the 97.1% of the Senior Unsecured Notes issued in 2014 by Grifols Worldwide Operations Limited, a 100% subsidiary of Grifols S.A., amounting to US Dollars 1,000 million, with a maturity in 2022 and at interest rate of 5.25% that was owned by a financial institution. The remaining 2.9% of the existing notes was redeemed before the exchange by an amount of Euros 26,618 thousand. The corresponding deferred costs of the notes have been recognized in profit and loss. On 2 May 2017 the Notes have been admitted to listing in the Irish Stock Exchange. The present value of discounted cash flows of the new Notes under the new agreement, including costs for fees paid and discounted using the original effective interest rate differs by less than 10% of the present value discounted cash flows remaining in the original debt, whereby the new agreement is not substantially different to the original agreement. The costs of refinancing Senior Unsecured Notes amounted to Euros 57.5 million, including the redemption costs. These costs were included as transaction costs together with other costs deriving from the debt issue and will be taken to profit and loss in accordance with the new effective interest rate. Based on the analysis of the quantitative and qualitative factors, the Group concluded that the renegotiation of conditions of the Senior Unsecured Notes does not trigger a derecognition of the liability. Unamortized financing costs from the Senior Unsecured Notes amount to Euros 146 million at 31 December 2017 (Euros 117 million at 31 December 2016). Details of movement in the Senior Unsecured Notes at 31 December 2016 are as follows: Thousands of Euros Opening outstanding Translation Closing outstanding Senior Unsecured Notes (nominal amount) Total Details of movement in the Senior Unsecured Notes at 31 December 2017 are as follows: Thousands of Euros Opening outstanding Refinancing Repayments Translation Closing outstanding Senior Unsecured Notes (nominal amount) ) ) Total ) ) At 31 December 2017 and 2016 the current obligations caption includes the issue of bearer promissory notes to Group employees, as follows: 31/12/2016 Promissory Nominal notes Interest amount of subscribed Buy back pending accrual Maturity promissory Interest (Thousands of (Thousands (Thousands of Issue date date notes (Euros) rate Euros) of Euros) Euros) Issue of bearer promissory notes 05/05/16 04/05/17 % ) ) 31/12/2017 Promissory Nominal notes Interest amount of subscribed Buy back pending accrual Maturity promissory Interest (Thousands of (Thousands (Thousands of Issue date date notes (Euros) rate Euros) of Euros) Euros) Issue of bearer promissory notes 05/05/17 04/05/18 % ) ) (b) Loans and borrowings Details of loans and borrowings at 31 December 2017 and 2016 are as follows: Thousands of Euros 31/12/2017 31/12/2016 Credit Currency Interest rate Date awarded Maturity date Amount extended Carrying amount Amount extended Carrying amount Senior debt - Tranche A US Dollars Libor + 1.75% 31/01/2017 31/01/2023 — — Senior debt - Tranche A Euros Euribor + 1.75% 31/01/2017 31/01/2023 — — Senior debt - Tranche B US Dollars Libor + 2.25% 31/01/2017 31/01/2025 — — Senior debt - Tranche B Euros Euribor + 3% 27/02/2014 28/02/2021 — — Senior debt - Tranche A US Dollars Libor + 2.5% 27/02/2014 29/02/2020 — — Senior debt - Tranche B US Dollars Libor + 3% 27/02/2014 28/02/2021 — — Total senior debt EIB Loan Euros 2.70% 20/11/2015 20/11/2025 EIB Loan Euros 2.02% 22/12/2017 22/12/2027 Total EIB Loan Revolving Credit US Dollars Libor + 1.75% 31/01/2017 31/01/2023 — — — Revolving Credit US Dollars Libor + 2.5% 27/02/2014 27/02/2019 — — — Total Revolving Credit — — Other non-current loans Euros Euribor- Euribor+4% 19/03/2013 30/09/2024 Loan transaction costs — ) — ) Non-current loans and borrowings Thousands of Euros 31/12/2017 31/12/2016 Credit Currency Interest rate Date awarded Maturity date Amount extended Carrying amount Amount extended Carrying amount Senior debt - Tranche A US Dollars Libor + 1.75% 31/01/2017 31/01/2023 (* ) — — — Senior debt - Tranche A Euros Euribor + 1.75% 31/01/2017 31/01/2023 (* ) — — — Senior debt - Tranche B US Dollars Libor + 2.25% 31/01/2017 31/01/2025 (* ) — — Senior debt - Tranche B Euros Euribor + 3% 27/02/2014 28/02/2021 — — (* ) Senior debt - Tranche A US Dollars Libor + 2.5% 27/02/2014 29/02/2020 — — (* ) Senior debt - Tranche B US Dollars Libor + 3% 27/02/2014 28/02/2021 — — (* ) Total senior debt — — BEI Loan Euros 2.70% 20/11/2015 20/11/2025 (* ) — — Total BEI Loan — — — Other current loans 0.1%-3.74% Loan transaction costs — ) — ) Current loans and borrowings (*) See amount granted under non-current debt Current loans and borrowings include accrued interest amounting to Euros 1,713 thousand as at 31 December 2017 (Euros 596 thousand at 31 December 2016). On 06 February 2017 the Group refinanced its Senior Secured Debt with the existing lenders and obtained the additional debt for the acquisition of Hologic by an amount of US Dollars 1,816 million The new senior debt consists of a Term Loan A (“TLA”), which amounts to US Dollars 2,350 million and Euros 607 million with a 1.75% margin overLibor and Euribor respectively and maturity in 2023 and quasi-bullet amortization structure, and a Term Loan B (“TLB”) that amounts to US Dollars 3,000 million with a 2.25% margin over Libor and maturity in 2025. The borrowers of the total debt are Grifols Worldwide Operations Limited and Grifols, S.A. for the Term Loan A and Grifols Worldwide Operations USA, Inc. for the Term Loan B. The present value discounted from cash flows under the new agreement, including any fees paid and discounted using the original effective interest rate differs by less than 10% of the present value discounted from cash flows remaining in the original debt, whereby it is considered that the debt instrument has not been substantially modified. The costs of refinancing the senior debt have amounted to Euros 84.8 million. Based on the analysis of the quantitative and qualitative factors, the Group has concluded that the renegotiation of conditions of the senior debt does not trigger a derecognition of the liability. Unamortized financing costs from the senior secured debt amount to Euros 195 million at 31 December 2017 (Euros 154 million at 31 December 2016). The terms and conditions of the senior secured debt are as follows: · Tranche A: six year loan divided into two tranches: US Tranche A and Tranche A in Euros. · US Tranche A : · Original Principal Amount of US Dollars 2,350 million. · Applicable margin of 175 basis points (bp) linked to US Libor. · Quasi-bullet amortization structure. · Maturity in 2023. · Tranche A in Euros : · Original Principal Amount of Euros 607 million. · Applicable margin of 175 basis ponts (bp) linked to Euribor. · Quasi-bullet amortization structure. · Maturity in 2023. Details of Tranche A by maturity at 31 December 2017 are as follows: US Tranche A Tranche A in Euros Maturity Currency Principal in thousands Principal in thousands Currency Principal in 2019 US Dollars Euros 2020 US Dollars Euros 2021 US Dollars Euros 2022 US Dollars Euros 2023 US Dollars Euros Total US Dollars Euros · Tranche B: Senior Debt Loan repayable in eight years. · US Tranche B : · Original Principal Amount of US Dollars 3,000 million. · Applicable margin of 225 basis points (bp) linked to US Libor. · Quasi-bullet amortization structure. · Maturity in 2025. Details of Tranche B by maturity at 31 December 2017 are as follows: US Tranche B Maturity Currency Principal in thousands of US Principal in thousands of 2018 US Dollars 2019 US Dollars 2020 US Dollars 2021 US Dollars 2022 US Dollars 2023 US Dollars 2024 US Dollars 2025 US Dollars Total US Dollars US Dollar 300 million committed credit revolving facility: Amount maturing on 2023 and applicable margin of 175 basis points (bp) linked to US Libor. At 31 December 2017 no amount has been drawn down on this facility. The issue of senior unsecured notes and senior secured debt is subject to compliance with a leverage ratio covenant. At 31 December 2017 the Group complies with this covenant. Both the Senior Term Loans and the Revolving Loans are guaranteed by Grifols, S.A. and certain significant subsidiaries of Grifols, S.A. that together with Grifols, S.A. represent, in the aggregate, at least 80% of the consolidated assets and consolidated EBITDA of Grifols, S.A. and its subsidiaries. The Notes have been issued by Grifols S.A. and are guaranteed on a senior unsecured basis by subsidiaries of Grifols, S.A. that are guarantors and co-borrower under the New Credit Facilities. The guarantors are Grifols Worldwide Operations Limited, Biomat USA, Inc., Grifols Biologicals Inc., Grifols Shared Services North America, Inc., Grifols Diagnostic Solutions Inc., Grifols Therapeutics, Inc., Instituto Grifols, S.A., Grifols Worldwide Operations USA, Inc and Grifols USA, Llc. (c) Finance lease liabilities Details of minimum payments and the present value of finance lease liabilities, by maturity date, are as follows: Thousands of Euros 31/12/2017 31/12/2016 Minimum Interest Present Value Minimum Interest Present Value Maturity at: Less than one year Two years Three years Four years Five years More than five years Total (d) Credit rating In December 2017 and December 2016 Moody’s Investors Service has confirmed the ‘Ba3’ corporate family rating, ‘Ba2’ rating to the senior secured bank debt and ‘B2’ rating to the unsecured notes that were used to refinance the existing debt structure. The outlook is confirmed as stable. In December 2017 and December 2016 Standard & Poor’s has confirmed its ‘BB’ rating on Grifols and has assigned ‘BB’ and ‘B+’ issue ratings to Grifols’ senior secured debt and senior unsecured notes that were used to refinance the existing debt structure. The outlook for the rating is stable. (e) Other financial liabilities At 31 December 2017 “other financial liabilities” include interest-free loans extended by governmental institutions amounting to Euros 20,306 thousand (Euros 20,543 thousand at 31 December 2016). The portion of the loans considered a grant and still to be taken to profit and loss amounts to Euros 812 thousand (Euros 885 thousand at 31 December 2016) (see note 18). At 31 December 2017, “other current financial liabilities” include an amount of Euros 5 million related to the remaining call option extended by the Group and the shareholders of Progenika with maturity on 2018. At 31 December 2017 and 2016 “other current financial liabilities” also include approximately Euros 3,056 thousand and Euros 17,578 thousand, respectively, which have been collected directly from Spanish Social Security affiliated bodies and transferred to financial institutions (see note 13). Details of the maturity of other financial liabilities are as follows: Thousands of Euros 31/12/2017 31/12/2016 Maturity at: Up to one year Two years Three years Four years Five years Over five years |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and Other Payables | |
Trade and Other Payables | (21) Trade and Other Payables Details are as follows: Thousands of Euros 31/12/2017 31/12/2016 Suppliers VAT payable Taxation authorities, withholdings payable Social security payable Other public entities Other payables Current income tax liabilities Suppliers Details of balances with related parties are shown in note 31. The Group’s exposure to currency risk and liquidity risk associated with trade and other payables is described in note 30. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Current Liabilities | |
Other Current Liabilities | (22) Other Current Liabilities Details at 31 December are as follows: Thousands of Euros 31/12/2017 31/12/2016 Salaries payable Other payables Deferred income Advances received Other current liabilities |
Net Revenues
Net Revenues | 12 Months Ended |
Dec. 31, 2017 | |
Net Revenues | |
Net Revenues | (23) Net Revenues Net revenues are mainly generated from the sale of goods. The distribution of net consolidated revenues for 2017, 2016 and 2015 by segment is as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Bioscience Diagnostic Hospital Bio supplies Others Intersegments ) ) ) As a result of the creation of Bio Supplies segment and Intersegment, the Group has reviewed the allocation of balances and transactions by segments. The comparative figures for years 2016 and 2015 have been restated accordingly. The geographical distribution of net consolidated revenues is as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 USA and Canada Spain European Union Rest of the world Consolidated Details of discounts and other reductions in gross income are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Gross sales Chargebacks ) ) ) Cash discounts ) ) ) Volume rebates ) ) ) Medicare and Medicaid ) ) ) Other discounts ) ) ) Net sales Movement in discounts and other reductions in gross income during 2015 were as follows: Thousands of Euros Chargebacks Cash Volume Medicare / Other Total Balance at 31 December 2014 Current estimate related to sales made in current and prior year (1) (Actual returns or credits in current period related to sales made in current period) ) ) ) ) ) )(2) (Actual returns or credits in current period related to sales made in prior periods) — ) ) ) ) )(3) Translation differences Balance at 31 December 2015 Movement in discounts and other reductions to gross income during 2016 were as follows: Thousands of Euros Chargebacks Cash Volume Medicare / Other Total Balance at 31 December 2015 Current estimate related to sales made in current and prior year (1) (Actual returns or credits in current period related to sales made in current period) ) ) ) ) ) )(2) (Actual returns or credits in current period related to sales made in prior periods) — ) ) ) ) )(3) Translation differences Balance at 31 December 2016 Movement in discounts and other reductions to gross income during 2017 were as follows: Thousands of Euros Chargebacks Cash Volume Medicare / Other Total Balance at 31 December 2016 Current estimate related to sales made in current and prior year (Actual returns or credits in current period related to sales made in current period) ) ) ) ) ) )(2) (Actual returns or credits in current period related to sales made in prior periods) ) ) ) ) )(3) Translation differences ) ) ) ) ) ) Balance at 31 December 2017 (1) Net impact in income statement: estimate for the current year plus prior years’ adjustments. Adjustments made during the year corresponding to prior years’ estimates have not been significant. (2) Amounts credited and posted against provisions for current period (3) Amounts credited and posted against provisions for prior period |
Personnel Expenses
Personnel Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Personnel Expenses | |
Personnel Expenses | (24) Personnel Expenses Details of personnel expenses by function are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Cost of sales Research and development Selling general & administration expenses Details by nature are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Wages and salaries Contributions to pension plans (see note 29) Other social charges Social Security |
Expenses by Nature
Expenses by Nature | 12 Months Ended |
Dec. 31, 2017 | |
Expenses by Nature | |
Expenses by Nature | (25) Expenses by Nature (a) Amortization and depreciation Expenses for the amortization and depreciation of intangible assets and property, plant and equipment, incurred during 2017, 2016 and 2015 classified by functions are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Cost of sales Research and development Selling, general & administration expenses (b) Other operating income and expenses Other operating income and expenses incurred during 2017, 2016 and 2015 by function are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Cost of sales Research and development Selling, general & administration expenses Details by nature are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Changes in trade provisions ) ) Professional services Commissions Supplies and auxiliary materials Operating leases (note 28) Freight Repair and maintenance expenses Advertising Insurance Royalties Travel expenses External services R&D Expenses Other Other operating income&expenses |
Finance Result
Finance Result | 12 Months Ended |
Dec. 31, 2017 | |
Finance Result | |
Finance Result | (26) Finance Result Details are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Finance income Finance cost from Senior Unsecured Notes ) ) ) Finance cost from senior debt ) ) ) Finance cost from sale of receivables (note 13) ) ) ) Capitalized interest Other finance costs ) ) ) Finance costs ) ) ) Change in fair value of financial derivatives (note 30) ) ) ) Impairment and gains / (losses) on disposal of financial instruments (note 11) ) — — Exchange differences ) ) Finance result ) ) ) During 2017 the Group has capitalized interest at a rate of between 4.26% and 4.87% based on the financing received (between 4.8% and 5.2% during 2016) (see note 4 (f)). |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2017 | |
Taxation | |
Taxation | (27) Taxation Grifols, S.A. is authorized to file consolidated tax returns in Spain with Diagnostic Grifols, S.A., Grifols Movaco, S.A., Laboratorios Grifols, S.A., Instituto Grifols, S.A., Grifols Worldwide Operations Spain, S.A. (formerly Logister, S.A), Biomat, S.A., Grifols Viajes, S.A., Grifols International, S.A., Grifols Engineering, S.A., Gri-Cel, S.A., Gripdan Invest, S.L. and VCN Biosciences, S.L. Grifols, S.A., in its capacity as Parent, is responsible for the filing and settlement of the consolidated tax return. Under prevailing tax law, Spanish companies pay 25% tax, which may be reduced by certain deductions. The North American company Grifols Shared Services North America, Inc. is also authorized to file consolidated tax returns in the USA with Grifols Biologicals Inc., Grifols USA, LLC., Biomat USA, Inc., Grifols Therapeutics Inc. and Talecris Plasma Resources, Inc. The profits of the companies domiciled in the USA, determined in accordance with prevailing tax legislation, are subject to tax of approximately 36.5% of taxable income, which may be reduced by certain deductions. (a) Reconciliation of accounting and taxable income Details of the income tax expense and income tax related to profit for the year are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Profit before income tax from continuing operations Tax at 25% (28% for 2015) Permanent differences ) Effect of different tax rates ) Tax credits (deductions) ) ) ) Impact related to the US tax legistation modific ) — — Prior year income tax expense ) Other income tax expenses/(income) ) ) Total income tax expense Deferred tax ) ) Current tax Total income tax expense The effect of the different tax rates is basically due to a change of country mix in profits On December 22, 2017, a tax reform has been approved in the United States that will take effect on January 1, 2018. The Group has carried out an exercise to identify changes in the tax reform affecting its subsidiaries in the USA and an assessment of the impact that these changes will have on the manner in which the deferred taxes will revert as of December 31, 2017. In the analysis performed, the main impact comes from the change in tax rates to be applied to deferred taxes as of December 31, 2017, which have gone from a rate of 35% to 21% for fiscal years beginning on or after January 1. of 2018. The impact registered in the “income tax expense” caption amounts to Euros 171 million in the year 2017. The remaining changes in the tax legislation that affect the subsidiaries in the USA have not had a material impact nor have they required relevant judgments and estimates that could lead to significant variations in the estimate made in the future. As a consequence, we consider the estimates made as definitive. (b) Deferred tax assets and liabilities Details of deferred tax assets and liabilities are as follows: Thousands of Euros Tax effect 31/12/2017 31/12/2016 31/12/2015 Assets Provisions Inventories Tax credits (deductions) Tax loss carry forwards Other Subtotal, assets Goodwill ) ) ) Fixed assets, amortisation and depreciation ) ) ) Intangible assets ) ) ) Subtotal, net liabilities ) ) ) Deferred assets, net Liabilities Goodwill ) ) ) Intangible assets ) ) ) Fixed assets ) ) ) Debt cancellation costs ) ) ) Inventories ) ) Cash flow hedges — — ) Subtotal, liabilities ) ) ) Tax loss carry forwards Provisions Other Subtotal, net assets Net deferred Liabilities ) ) ) Movement in deferred tax assets and liabilities is as follows: Thousands of Euros Deferred tax assets and liabilities 31/12/2017 31/12/2016 31/12/2015 Balance at 1 January ) ) ) Movements during the year ) Movements in equity during the year — — ) Business combination (note 3) — — Translation differences ) ) Balance at 31 December ) ) ) The Spanish companies have opted to apply accelerated depreciation to certain additions to property, plant and equipment, which has resulted in the corresponding deferred tax liability. The remaining assets and liabilities recognized in 2017, 2016 and 2015 were recognized in the statement of profit and loss. Estimated net deferred tax assets to be reversed in a period of less than 12 months amount to Euros 51,930 thousand at 31 December 2017 (Euros 99,897 thousand at 31 December 2016). The majority of the tax deductions pending application from Spanish companies related mainly to research and development, mature in 18 years. Tax credits derived from the US companies are available for 20 years from their date of origin whilst tax credits from Spanish companies registered in the Basque Country are available for 15 and other remaining Spanish companies have no maturity date. The Group has not recognized as deferred tax assets the tax effect of the tax loss carryforwards of Group companies, which amount to Euros 51,169 thousand (Euros 67,044 thousand at 31 December 2016). The commitments from Spanish companies from the reversal of deferred tax related to provisions of investments in subsidiaries are not significant. (c) 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. The main tax audits currently open in the Group are as follows: · Grifols Share Services North America, Inc: Income Tax Audit for the tax year ending, 2015 was initiated from July, 2017. During tax year 2017 these inspections had been closed without any significant adjustment. · Grifols Shared Services North America, Inc. and subsidiaries: notification of an inspection of State Income tax in North Carolina and New York states (tax years 2012 to 2015). · Grifols Diagnostic Solutions, Corp.: notification of an inspection of the “federal tax return” for the fiscal · Grifols, S.A., Instituto Grifols, S.A., Grifols Movaco, S.A. and Biomat, S.A.: Income Tax audit, Withholdings and VAT Audit for the tax years ended 2010, 2011 and 2012 that were initiated as of July 2014. During tax year 2016 these inspections had been closed without any significant adjustment. Group management does not expect any significant liability to derive from these inspections. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2017 | |
Operating Leases | |
Operating Leases | (28) Operating Leases (a) Operating leases (as lessee) At 31 December 2017, 2016 and 2015 the Group leases buildings and warehouses from third parties under operating leases. Operating lease instalments of Euros 80,136 thousand have been recognized as an expense for the year ended at 31 December 2017 (Euros 74,945 thousand at 31 December 2016 and Euros 70,496 thousand at 31 December 2015) and comprise minimum lease payments. Future minimum payments on non-cancellable operating leases at 31 December 2017, 2016 and 2015 are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Maturity at: Up to 1 year Between 1 and 5 years More than 5 years Total future minimum payments (b) Operating leases (as lessor) At 31 December 2017, 2016 and 2015 the Group has no lease contracts as lessor. |
Other Commitments with Third Pa
Other Commitments with Third Parties and Other Contingent Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Other Commitments with Third Parties and Other Contingent Liabilities | (29) Other Commitments with Third Parties and Other Contingent Liabilities (a) Guarantees The Group has no significant guarantees extended to third parties. (b) Guarantees committed with third parties The Group has no significant guarantees extended to third parties, except for the ones included in note 20. (c) Obligations with personnel The Group’s annual contribution to defined contribution pension plans of Spanish Group companies for 2017 has amounted to Euros 725 thousand (Euros 674 thousand for 2016). In successive years this contribution will be defined through labor negotiations. In the event that control is taken of the Company, the Group has agreements with 73 employees/directors whereby they can unilaterally rescind their employment contracts with the Company and are entitled to termination benefits ranging from 2 to 5 years’ salary. The Group has contracts with nine executives entitling them to termination benefits ranging from one to four years of their salary in different circumstances. Restricted Share Unit Retention Plan For the annual bonus, the Group established a Restricted Share Unit Retention Plan (RSU Plan), for eligible employees. Under this plan, employees can choose to receive up to 50% of their yearly bonus in non-voting Class B ordinary shares (Grifols Class B Shares) or Grifols American Depositary Shares (Grifols ADS), and the Group will match this with an additional 50% of the employee’s choice of RSUs. Grifols Class B Shares and Grifols ADS are valued at grant date. These RSUs will have a vesting period of 2 years and 1 day and, subsequently, the RSU’s 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 before the vesting period, he will not be entitled to the additional RSUs. At 31 December 2017, the Group has settled the RSU plan of 2014 for an amount of Euros 7,303 thousand. This commitment is treated as equity-settled and the amount totals Euros 13,871 thousand at 31 December 2017 (Euros 10,594 thousand at 31 December 2016). Savings plan and profit-sharing plan The Group has a defined contribution plan (savings plan), which qualifies as a deferred salary arrangement under Section 401 (k) of the Internal Revenue Code (IRC). Once eligible, employees may elect to contribute a portion of their salaries to the savings plan, subject to certain limitations. The Group matches 100% of the first 3% of employee contributions and 50% of the next 2%. Group and employee contributions are fully vested when contributed. The total cost of matching contributions to the savings plan was US Dollars 18.9 million for 2017 (US Dollars 17 million for 2016). Other plans The Group has a defined benefit pension plan for certain Talecris Biotherapeutics, GmbH employees in Germany as required by statutory law. The pension cost relating to this plan was not material for the periods presented. (d) Purchase commitments Details of the Group’s commitments at 31 December 2017 are as follows: Thousands of Euros 2018 2019 2020 2021 2022 2023 2024 (e) Judicial procedures and arbitration Details of legal proceedings in which the Company or Group companies are involved are as follows: The Group carried out an internal investigation, already started prior to the acquisition of Talecris, in relation to possible breaches of the Foreign Corrupt Practices Act (FCPA) of which Talecris was aware in the context of a review unrelated to this matter. This FCPA investigation was carried out by an external legal advisor. In principle, the investigation was focused on sales to certain Central and Eastern European countries, specifically Belarus and Russia, although trading practices in Brazil, China, Georgia, Iran and Turkey are also being investigated, in addition to other countries considered necessary. In July 2009, the Talecris Group voluntarily contacted the U.S. Department of Justice (DOJ) to inform them of an internal investigation that the Group was carrying out regarding possible breaches of the FCPA in certain sales to certain central and East European countries and to offer the Group’s collaboration in any investigation that the DOJ wanted to carry out. As a result of this investigation the Group suspended shipments to some of these countries. In certain cases, the Group had safeguards in place which led to terminating collaboration with consultants and suspending or terminating relations with distributors in those countries under investigation as circumstances warranted. As a consequence of the investigation, the agreement with Talecris’ Turkish distributor was terminated and a settlement agreement was reached between the parties. In November 2012, the Group was notified by the DOJ that the proceedings would be closed, without prejudice to the fact that they could be re-opened in the future should new information arise. The Group continues with the in-depth review of potential irregular practices. Furthermore, an investigation was opened in Italy, in relation with the criminal prosecution in Naples against 5 employees of the Company, including the former General Manager. From these 5 employees of the Company initially charged, the Naples Tribunal resolved discharging 3 of them, continuing the judicial process only against the remaining 2 employees. Additionally, the Company has finalized the internal investigation opened in Italy as a consequence of the indicated judicial proceedings, and in November 2015 a meeting took place with the DOJ to report on the conclusions derived from the investigation. Additionally to the above and as part of the in-depth review of potential irregular practices that the Group is carrying out in relation to its recent acquisitions, the Company opened internal investigations in Mexico as well as in the Czech Republic to review the commercial practices in such countries. Both investigations have finalized, without having detected any significant practice that could imply a breach of the FCPA. On September 2016, the United States Department of Justice (the “Department”) notified the Group that the Department has closed its inquiry into Grifols, concerning possible violations of the U.S. Foreign Corrupt Practices Act. In its notice of declination to prosecute, the Department acknowledged the full cooperation of Grifols in the investigation. · As a result of the acquisition of the transfusional Diagnostic unit, the Group considers that there could have existed inadequate commercial and contractual practices which could originate in potential contingencies. · bioMerieux, S.A., et ano. v. Hologic, Inc. et al., Case No. 1:17-cv-102 (M.D.N.C); Case No. 18-21-LPS-CJB (D. Del.): on February 3, 2017, bioMérieux, S.A and bioMérieux, Inc. filed suit against Hologic, Inc. (“Hologic”), Grifols, S.A. (“GSA”), and Grifols Diagnostic Solutions Inc. (“GDS”) in the U.S. District Court for the Middle District of North Carolina, alleging infringement of U.S. Patent Nos. 8,697,352 and 9,074,262 by virtue of defendants’ activities with respect to the Procleix HIV-1/HCV Assay®, Procleix Ultrio Assay®, and Procleix Ultrio Plus® products. Hologic and GDS filed a motion to dismiss for failure to state a claim on April 3, 2017. As a result of a claim of improper venue, the case was transferred to the U.S. District Court for the District of Delaware in early 2018. Hologic and GDS are pursuing defenses of failure to state a claim, non-infringement, invalidity, and that the infringement claims are contractually barred. Additionally, GSA intends to pursue dismissal for lack of personal jurisdiction. · Enzo Life Sciences, Inc. v. Hologic, Inc. et al., Case No. 1:16-cv-00894-LPS (D. Del.): on October 4, 2016, Enzo Life Sciences, Inc. (“Enzo”) filed suit against Hologic in the U.S. District Court for the District of Delaware, alleging infringement of U.S. Patent No. 6,221,581 by virtue of Hologic’s activities with respect to Progensa®, Procleix®, and Aptima®products. On November 9, 2017, the Court granted Enzo’s motion to amend its complaint to add GSA and GDS as defendants with respect to the Procleix® products at issue. Hologic and GDS have answered the complaint, alleging non-infringement and invalidity among their defenses. GSA has moved to dismiss for lack of personal jurisdiction. The case schedule has been extended in light of the addition of Grifols-related entities as co-defendants, with Hologic and GDS currently engaged in fact discovery. Trial is scheduled for September 2019. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments | |
Financial Instruments | (30) Financial Instruments Classification Disclosure of financial instruments by nature, category and fair value is as follows: Thousand of Euros 31/12/2016 Carrying amount Fair Value Loans and Financial Available for Debts and Total Level 1 Level 2 Level 3 Total Non-current financial assets — — — Financial derivatives — — — — — Financial assets measured at fair value — Non-current financial assets — — — Other current financial assets — — — Trade and other receivables — — — Cash and cash equivalents — — — Financial assets not measured at fair value — — — Senior Unsecured Notes — — — ) ) ) — — ) Promissory Notes — — — ) ) Senior secured debt — — — ) ) — ) — ) Other bank loans — — — ) ) Finance lease payables — — — ) ) Other financial liabilities — — — ) ) Trade and other payables — — — ) ) Other current liabilities — — — ) ) Financial liabilities not measured at fair value — — — ) ) ) ) The Group does not provide details of the fair value of certain financial instruments as their carrying amount is very similar to their fair value because of its short term. Thousand of Euros 31/12/2017 Carrying amount Fair Value Loans and Financial Available for Debts and Total Level 1 Level 2 Level 3 Total Non-current financial assets — — — — — Financial derivatives — — — — — Financial assets measured at fair value — — Non-current financial assets — — — Other current financial assets — — — Trade and other receivables — — — Cash and cash equivalents — — — Financial assets not measured at fair value — — — Senior Unsecured Notes — — — ) ) ) — — ) Promissory Notes — — — ) ) Senior secured debt — — — ) ) — ) — ) Other bank loans — — — ) ) Finance lease payables — — — ) ) Other financial liabilities — — — ) ) Trade and other payables — — — ) ) Other current liabilities — — — ) ) Financial liabilities not measured at fair value — — — ) ) ) ) The Group does not provide details of the fair value of certain financial instruments as their carrying amount is very similar to their fair value because of its short term. Financial derivatives At 31 December 2017 and 2016 the Group has recognized the following derivatives: Notional Notional Thousands of Euros amount at amount at Value at Value at Financial derivatives Currency 31/12/2017 31/12/2016 31/12/17 31/12/16 Maturity Call Option US Dollar N/A N/A 30/04/2019 Embedded derivative US Dollar N/A N/A — 31/05/2021 Total Total Assets (notes 10 and 11) At 31 December 2017, the Group has totally impaired the amount of the embedded derivative related to the convertible bonds issued by Aradigm due to the no recommendation of approval of Linhaliq TM by the Food and Drug Administration (FDA) (see note 11). On May 11, 2016 the Group has paid an aggregate amount equal to US Dollars 10 million (Euros 8,960 thousand) in respect of the call right for the Interstate Blood Bank, Inc. shares, Bio-Blood Components, Inc. shares and Plasma Biological Services, LLC. units that are not owned by the Group. The call right can be exercised by the Group by delivering written notice of its intention at any time on or after February 1, 2019 and on or before April 30, 2019 (see note 11). Financial derivatives are measured based on observable market data (level 3 of fair value hierarchy). Regarding the valuation of derivative instruments, the selection of the appropriate data within the alternatives requires the use of judgement in qualitative factors such as, which methodology and valuation models are used, and in quantitative factors, data required to be included within the chosen models. Derivative financial instruments that do not meet the hedge accounting requirements are classified and measured as financial assets or financial liabilities at fair value through profit and loss. Credit risk (a) Exposure to credit risk The carrying amount of financial assets represents the maximum exposure to credit risk. At 31 December 2017 and 2016 the maximum level of exposure to credit risk is as follows: Thousands of Euros Carrying amount Note 31/12/2017 31/12/2016 Non-current financial assets Other current financial assets Trade receivables Other receivables Cash and cash equivalents The maximum level of exposure to risk associated with receivables at 31 December 2017 and 2016, by geographical area, is as follows. Thousands of Euros Carrying amount 31/12/2017 31/12/2016 Spain EU countries United States of America Other European countries Other regions Details of balances receivable by country such as Greece, Italy, Spain and Portugal at 31 December 2016 are as follows: Thousands of Euros Balances with public entities Balance with third parties Balance (1) Balance Provision Balance Balance Provision Net debt Greece — — — — ) Italy — ) Spain — ) Portugal ) ) ) ) Details of balances receivable by country such as Greece, Italy, Spain and Portugal at 31 December 2017 are as follows: Thousands of Euros Balances with public entities Balance with third parties Balance (1) Balance Provision Balance Balance Provision Net debt Greece — — — — — Italy — ) Spain — ) Portugal ) ) ) ) Provision has been made for balances receivable from Portuguese public entities on the basis of the best estimate of their expected collection in view of the current situation regarding negotiations. The Group does not currently have any reason to consider that the receivables from public entities in Spain will not be recoverable. (b) Impairment losses Details of the maturity of trade receivables, net of impairment provisions are as follows: Thousands of Euros 31/12/2017 31/12/2016 Not matured Less than 1 month 1 to 4 months 4 months to 1 year More than one year Unimpaired receivables that are past due mainly relate to public entities. Movement in the bad debt provision was as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Opening balance Net charges for the year Net cancellations for the year ) ) ) Translation differences ) Closing balance An analysis of the concentration of credit risk is provided in note 5 (a). Liquidity risk The management of the liquidity risk is explained in note 5. Details of the contractual maturity dates of financial liabilities including committed interest calculated using interest rate forward curves are as follows: Thousands of Euros Carrying amount Note Carrying Contractual 6 months 6 - 12 1-2 years 2- 5 years More than Financial liabilities Bank loans Other financial liabilities Bonds and other marketable securities — Finance lease payables — Payable to suppliers — — — Other current liabilities — — — Total Thousands of Euros Carrying amount Note Carrying Contractual 6 months 6 - 12 1-2 years 2- 5 years More than Financial liabilities Bank loans Other financial liabilities Bonds and other marketable securities Finance lease payables Payable to suppliers — — — Other current liabilities — — — Total Currency risk The Group’s exposure to currency risk is as follows: Thousands of Euros 31/12/2016 Euros (*) Dollars (**) Trade receivables Receivables from Group companies Loans to Group companies Cash and cash equivalents Trade payables ) ) Payables to Group companies ) ) Loans from Group companies ) ) Bank loans ) — Balance sheet exposure ) (*) Balances in Euros in subsidiaries with US Dollars functional currency (**) Balances in US Dollars in subsidiaries with Euros functional currency Thousands of Euros 31/12/2017 Euros (*) Dollars (**) Trade receivables Receivables from Group companies Loans to Group companies Cash and cash equivalents Trade payables ) ) Payables to Group companies ) ) Loans from Group companies ) ) Bank loans ) — Balance sheet exposure (*) Balances in Euros in subsidiaries with US Dollars functional currency (**) Balances in US Dollars in subsidiaries with Euros functional currency The most significant exchange rates applied at 2017 and 2016 year ends are as follows: Closing exchange rate Euros 31/12/2017 31/12/2016 US Dollars A sensitivity analysis for foreign exchange fluctuations is as follows: Had the US Dollar strengthened by 10% against the Euro at 31 December 2017, equity would have increased by Euros 416,116 thousand (Euros 318,528 thousand at 31 December 2016) and profit due to foreign exchange differences would have increased by Euros 14,615 thousand (would have decreased by Euros 11,425 thousand at 31 December 2016). This analysis assumes that all other variables are held constant, especially that interest rates remain constant. A 10% weakening of the US Dollar against the Euro at 31 December 2017 and 2016 would have had the opposite effect for the amounts shown above, all other variables being held constant. Interest rate risk (a) Interest-rate profile To date, the profile of interest on interest-bearing financial instruments is as follows: Thousands of Euros 31/12/2017 31/12/2016 Fixed-interest financial instruments Financial liabilities ) ) ) ) Variable-interest financial instruments ) ) Financial liabilities ) ) ) ) (b) Sensitivity analysis If the interest rate had been 100 basis points higher during 2017, the interest expense would have increased by Euros 53 million. As the Group does not have any derivatives in place, the net effect on cash interest payments would have increased by the same amount. If the interest rate had been 100 basis points higher during 2016, the interest expense would have increased by Euros 40.7 million, the finance cost due to changes in the value of derivatives would have been Euros 2.6 million lower. The impact on equity is not significant because of derivatives close to maturity on 31 March 2016 for Euro swaps and 30 June 2016 for US dollar swaps. Therefore, the net effect on cash interest payments should have been Euros 38.1 million. |
Balances and Transactions with
Balances and Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Balances and Transactions with Related Parties | |
Balances and Transactions with Related Parties | (31) Balances and Transactions with Related Parties Details of balances with related parties are as follows: Thousands of Euros 31/12/2017 31/12/2016 Receivables from associates (note 13) Trade payables associates ) ) Loans to associates (note 11) Debts with associates — — Debts with key management personnel ) ) Payables to members of the board of directors ) — Payables to other related parties ) ) ) Payables are included in suppliers and trade payables (see note 21). (a) Group transactions with related parties Group transactions with related parties during 2015 were as follows: Thousands of Euros Associates Key management Other related parties Board of directors of Net sales — — — Other service expenses ) — ) ) Operating lease expense — — ) — Remuneration — ) — ) R&D agreements ) — — — Purchase of Fixed Assets — — ) — Sale of Fixed Assets — — — Finance Income — — — ) ) ) ) Group transactions with related parties during 2016 were as follows: Thousands of Euros Associates Key management Other related parties Board of directors of Net sales — — — Purchases ) — — — Other service expenses ) — ) ) Operating lease expense — — ) — Remuneration — ) — ) R&D agreements ) — — — Finance Income — — — ) ) ) ) Group transactions with related parties during 2017 are as follows: Thousands of Euros Associates Key management Other related parties Board of directors of Net sales — — — Purchases ) — — — Other service expenses ) — ) ) Operating lease expense — — ) — Remuneration — ) — ) R&D agreements ) — — — Finance Income — — — ) ) ) ) Every year the Group contributes 0.7% of its profits before tax to a non-profit organization. “Other service expenses” include contributions to non-profit organizations totaling Euros 7,100 thousand in 2017 (Euros 5,325 thousand in 2016 and Euros 5,224 thousand in 2015). During 2011 one of the Company’s directors signed a three-year consulting services contract. The director will receive annual fees of US Dollars 1 million for these services and an additional bonus of US Dollars 2 million for complying with certain conditions. During 2014, this contract was renewed for an additional year for an amount of US Dollars 1 million. In 2015, this contract was extended for two years for an amount of US Dollars 1 million for each year. Directors representing shareholders’ interests have received remuneration of Euros 1,881 thousand in 2017 (During 2016 the Group did not name any director representing shareholders’ interests and during 2015 the named directors representing shareholders’ interests received Euros 50 thousand). The Group has not extended any advances or loans to the members of the board of directors or key management personnel nor has it assumed any guarantee commitments on their behalf. It has also not assumed any pension or life insurance obligations on behalf of former or current members of the board of directors or key management personnel. In addition, certain Company directors and key management personnel have termination benefit commitments (see note 29 (c)). (b) Conflicts of interest concerning the directors The Company’s directors and their related parties have not entered into any conflict of interest that should have been reported in accordance with article 229 of the revised Spanish Companies Act. |
Events after the Reporting Peri
Events after the Reporting Period | 12 Months Ended |
Dec. 31, 2017 | |
Events after the Reporting Period | |
Events after the Reporting Period | (32) Events after the Reporting Period Goetech, LLC. (“MedKeeper”) acquisition On 26 January 2018 Grifols has acquired, through its subsidiary Grifols Shared Services North America, Inc., the U.S. company Goetech, LLC. based in Denver, Colorado, doing business as MedKeeper. This transaction for a total of US dollar 98 million included a 51% stake in the company and a call option for Grifols and put option for Medkeeper for the remaining 49% in the third anniversary of the deal. Grifols holds a majority position on the board of directors. Medkeeper’s core business is the development and distribution of web and mobile-based platforms for hospital pharmacies that improve quality standards, productivity in the process, control systems and monitoring different preparations while increasing patient safety. This investment will enhance the activity of the Grifols Hospital Division and it is part of the strategy to underpin this division into the U.S. market. Haema AG acquisition On 20 March 2018 Grifols has entered into agreement with Aton GmbH for the purchase of 100% of the shares of German based pharmaceutical company Haema AG (“Haema), in exchange of a purchase price of Euros 220 million on a debt free basis. The closing of the transaction is subject to the fulfilment of certain conditions, among others, the authorization of the purchase by applicable antitrust authorities. With this acquisition, and subject to the conditions being fulfilled, Grifols will acquire the businesses currently held by Haema, collection of plasma for fractionation, which includes 35 collection centers spread throughout the territory of Germany, and three more under construction. It’s headquarters are located in Leipzig with approximately 24,000m 2 (which include administration, production, storage and power station buildings) and also had a central laboratory in Berlin. Haema employs about 1,100 people and collected almost 800,000 litres of plasma in the preceding financial year, coming from approximately 1 million donations. |
Appendix I
Appendix I | 12 Months Ended |
Dec. 31, 2017 | |
Appendix I | |
Appendix I | APPENDIX I GRIFOLS, S.A. AND SUBSIDIARIES Information on Group Companies, Associates and others for the years ended 31 December 2017, 2016 and 2015 Acquisition / 31/12/2017 31/12/2016 31/12/2015 Registered Incorporation % shares % shares % shares Name Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Fully Consolidated Companies Diagnostic Grifols, S.A. Polígono Levante 1987 Industrial Development and manufacture of diagnostic equipment, instruments and reagents. — % — % % % Instituto Grifols, S.A. Polígono Levante 1987 Industrial Plasma fractioning and the manufacture of haemoderivative pharmaceutical products. % % % % % % Grifols Worldwide Operations Spain, S.A (formerly Logister, S.A.) Polígono Levante 1987 Services Manufacture, sale and purchase, commercialisation and distribution of all types of computer products and materials. — % — % — % Laboratorios Grifols, S.A. Polígono Levante 1989 Industrial Production of glass- and plastic-packaged parenteral solutions, parenteral and enteral nutrition products and blood extraction equipment and bags. % % % % % % Biomat, S.A. Polígono Levante 1991 Industrial Analysis and certification of the quality of plasma used by Instituto Grifols, S.A. It also provides transfusion centres with plasma virus inactivation services (I.P.T.H). % % % % % % Grifols Engineering, S.A. Polígono Levante 2000 Industrial Design and development of the Group’s manufacturing installations and part of the equipment and machinery used at these premises. The company also renders engineering services to external companies. % % % % % % Biomat USA, Inc. 2410 Lillyvale Avenue 2002 Industrial Procuring human plasma. — % — % — % Grifols Biologicals LLC. 5555 Valley Boulevard 2003 Industrial Plasma fractioning and the production of haemoderivatives. — % — % — % Grifols Australia Pty Ltd. Unit 5/80 Fairbank 2009 Industrial Distribution of pharmaceutical products and the development and manufacture of reagents for diagnostics. % — % — % — Medion Grifols Diagnostic AG Bonnstrasse,9 2009 Industrial Development and manufacturing activities in the area of biotechnology and diagnostics. — % — % % — Grifols Therapeutics LLC. 4101 Research Commons (Principal Address), 2011 Industrial Plasma fractioning and the production of haemoderivatives. — % — % — % Talecris Plasma Resources, Inc. 4101 Research Commons (Principal Address), 2011 Industrial Procuring human plasma. — % — % — % GRI-CEI, S/A Produtos para transfusao Rua Umuarama, 263 2012 Industrial Production of bags for the extraction, separation, conservation and transfusion of blood components. — — — — % — Grifols Worldwide Operations Limited Grange Castle Business Park, Grange Castle , Clondalkin, Dublin 22, Ireland 2012 Industrial Packaging, labelling, storage, distribution, manufacture and development of pharmaceutical products and rendering of financial services to Group companies. % — % — % — Progenika Biopharma, S.A. Parque Tecnológico de Vizcaya, Edificio 504 2013 Industrial Development, production and commercialisation of biotechnological solutions. — % — % % — This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Registered Incorporation % shares % shares % shares Name Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Fully Consolidated Companies Progenika Latina, S.A. de CV Periferico Sur Nº 4118 Int 8 Col. Jardines del Pedregal 2013 Industrial Development, production and commercialisation of biotechnological solutions. — — — % — % Progenika Inc. (Merged with Grifols Diagnostic Solutions Inc. in 2017) Corporation Service Company, 2711 2013 Industrial Development, production and commercialisation of genetic tools, diagnostic equipment and therapeutic systems and products for personalised medicine and the highest quality healthcare in general. — — — % — % Brainco Biopharma, S.L. Parque Tecnológico de Vizcaya, Edificio 504 2013 Industrial Development of products for the treatment and diagnosis of psychiatric illnesses — — — — — % Abyntek Biopharma, S.L. Parque Tecnológico de Vizcaya, Edificio 504 2013 Industrial Research, development and transfer of biotechnological products and processes, as well as the commercialiation of products and services related to the biosciences. — — — % — % Asociación I+D Progenika Parque Tecnológico de Vizcaya, Edificio 504 2013 Industrial Coordination, representation, management and promotion of the common interests of associated companies, in addition to contributing to the development, growth and internationalisation of its associates and of the biosciences sector in the Basque Country. — % — % — % Grifols Diagnostics Solutions Inc 4560 Horton Street 2013 Industrial Manufacture and sale of blood testing products % — % — % — Grifols Worldwide Operations USA Inc. 13111 Temple Avenue, City of Industry, California 91746-1510 Estados Unidos 2014 Industrial The manufacture, warehousing, and logistical support for biological products. — % — % — % Grifols Asia Pacific Pte, Ltd 501 Orchard Road nº20-01 2003 Commercial Distribution and sale of medical and pharmaceutical products. % — % — % — Grifols Movaco, S.A. Polígono Levante 1987 Commercial Distribution and sale of reagents, chemical products and other pharmaceutical specialities, and of medical and surgical materials, equipment and instruments for use by laboratories and health centres. % % % % % % Grifols Portugal Productos Farmacéuticos e Hospitalares, Lda. Rua de Sao Sebastiao,2 1988 Commercial Import, export and commercialisation of pharmaceutical and hospital equipment and products, particularly Grifols products. % % % % % % Grifols Chile, S.A. Avda. Americo Vespucio, 2242 1990 Commercial Development of pharmaceutical businesses, which can involve the import, production, commercialisation and export of related products. % — % — % — Grifols USA, LLC. 2410 Lillyvale Avenue 1990 Commercial Distribution and marketing of company products. — % — % — % Grifols Argentina, S.A. Bartolomé Mitre 3690/3790, 1991 Commercial Clinical and biological research. Preparation of reagents and therapeutic and diet products. Manufacture and commercialisation of other pharmaceutical specialities. % % % % % % Grifols s.r.o. Calle Zitna,2 1992 Commercial Purchase, sale and distribution of chemical-pharmaceutical products, including human plasma. % — % — % — Grifols (Thailand) Ltd 191 Silom Complex Building, 2003 Commercial Import, export and distribution of pharmaceutical products. — % — % — % Grifols Malaysia Sdn Bhd Level 18, The Gardens North Tower, Mid Valley City, 2003 Commercial Distribution and sale of pharmaceutical products. — % — % — % This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Registered Incorporation % shares % shares % shares Name Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Fully Consolidated Companies Grifols International, S.A. Polígono Levante 1997 Commercial Coordination of the marketing, sales and logistics for all the Group’s subsidiaries operating in other countries. % % % % % % Grifols Italia S.p.A Via Carducci, 62d 1997 Commercial Purchase, sale and distribution of chemical-pharmaceutical products. % — % — % — Grifols UK Ltd. Gregory Rowcliffe & Milners, 1 Bedford Row, London WC1R 4BZ 1997 Commercial Distribution and sale of therapeutic and other pharmaceutical products, especially haemoderivatives. % — % — % — Grifols Brasil, Lda. Rua Umuarama, 263 1998 Commercial Import and export, preparation, distribution and sale of pharmaceutical and chemical products for laboratory and hospital use, and medical-surgical equipment and instruments. % — % — % — Grifols France, S.A.R.L. Arteparc, Rue de la Belle du Canet, Bât. D, Route de la Côte d’Azur, 13590 Meyreuil 1999 Commercial Commercialisation of chemical and healthcare products. % % % % % % Grifols Polska Sp.z.o.o. Grzybowska 87 street00-844 Warsaw, Poland 2003 Commercial Distribution and sale of pharmaceutical, cosmetic and other products. % — % — % — Logística Grifols, S.A. de C.V. Calle Eugenio Cuzin, nº 909-913 2008 Commercial Manufacture and commercialisation of pharmaceutical products for human and veterinary use. % % % % % % Grifols México, S.A. de C.V. Calle Eugenio Cuzin, nº 909-913 1993 Commercial Production, manufacture, adaptation, conditioning, sale and purchase, commissioning, representation and consignment of all kinds of pharmaceutical products and the acquisition of machinery, equipment, raw materials, tools, movable goods and property for the aforementioned purposes. % % % % % % Medion Diagnostics GmbH Lochamer Schlag, 12D 2009 Commercial Distribution and sale of biotechnological and diagnostic products. — % — % — % Grifols Nordic, AB Sveavägen 166 2010 Commercial Research and development, production and marketing of pharmaceutical products, medical devices and any other asset deriving from the aforementioned activities. % — % — % — Grifols Colombia, Ltda Carrera 7 No. 71 52 Torre B piso 9 2010 Commercial Sale, commercialisation and distribution of medicines, pharmaceutical (including but not limited to haemoderivatives) and hospital products, medical devices, biomedical equipment, laboratory instruments and reagents for diagnosis and/or healthcare software. % % % % % % Grifols Deutschland GmbH Lyoner Strasse 15, D- 2011 Commercial Procurement of the official permits and necessary approval for the production, commercialisation and distribution of products deriving from blood plasma, as well as the import, export, distribution and sale of reagents and chemical and pharmaceutical products, especially for laboratories and health centres and surgical and medical equipment and instruments. % — % — % — Grifols Canada, Ltd. 5060 Spectrum Way, Suite 405 (Principal Address) 2011 Commercial Distribution and sale of biotechnological products. — % — % — % Grifols Pharmaceutical Technology (Shanghai) Co., Ltd. (formerly Grifols Pharmaceutical Consulting Unit 901-902, Tower 2, No. 1539, West Nanjing Rd., 2013 Commercial Pharmaceutical consultancy services (except for diagnosis), technical and logistical consultancy services, business management and marketing consultancy services. % — % — % — Grifols Switzerland AG Steinengraben, 5 2013 Commercial Research, development, import and export and commercialisation of pharmaceutical products, devices and diagnostic instruments. % — % — % — Grifols (H.K.), Limited Units 1505-7 Bershire House, 25 Westlands Road Hong Kong 2014 Commercial Distribution and sale of diagnostic products. — % — % — % This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Registered Incorporation % shares % shares % shares Name Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Fully Consolidated Companies Grifols Japan K.K. Hilton Plaza West Office Tower, 19th floor. 2-2, Umeda 2-chome, Kita-ku Osaka-shi 2014 Commercial Research, development, import and export and commercialisation of pharmaceutical products, devices and diagnostic instruments. % — % — % — Grifols India Healthcare Private Ltd Regus Business Centre Pvt.Ltd.,Level15,Dev Corpora, Plot No.463,Nr. Khajana 2014 Commercial Distribution and sale of pharmaceutical products. % % % % % % Grifols Diagnostics Equipment Taiwan Limited 8F., No.367, Fuxing N. RD., Songshang Dist., Taipei City 10543, Taiwan 2016 Commercial Distribution and sale of diagnostic products. % — % — — — Grifols Viajes, S.A. Can Guasch, 2 1995 Services Travel agency exclusively serving Group companies. % % % % % % Squadron Reinsurance Designated Activity Company The Metropolitan Building, 3rd Fl. 2003 Services Reinsurance of Group companies’ insurance policies. — % — % — % Grifols Shared Services North America, Inc. (formerly Grifols Inc.) 2410 Lillivale Avenue 2011 Services Support services for the collection, manufacture, sale and distribution of plasma derivatives and related products. % — % — % — Gripdan Invest, S.L Avenida Diagonal 477 Barcelona, Spain 2015 Services Manufacturing buildings for rent % — % — % — Gri-Cel, S.A. Avenida de la Generalitat 152 2009 Research Research and development in the field of regenerative medicine, awarding of research grants, subscription to collaboration agreements with entities and participation in projects in the area of regenerative medicine. % % % % % % Araclon Biotech, S.L. Paseo de Sagasta, 17 2º izqda. 2012 Research Creation and commercialisation of a blood diagnosis kit for the detection of Alzheimer’s and development of effective immunotherapy (vaccine) against this disease. — % — % — % VCN Bioscience, S.L. Avenida de la Generalitat 152 2012 Research Research and development of therapeutic approaches for tumours for which there is currently no effective treatment. — % — % — % Grifols Innovation and New Technologies Limited Grange Castle Business Park, Grange Castle , Clondalkin, Dublin 22, 2016 Research Research and experimental development on biotechnology — % — % — — PBS Acquisition Corp. 2711 Centerville Road Suite 400, Wilmington, 2016 Services Engage in any lawful act or activity for which corporations may be organized under the DGCL (Delaware Code) — % — % — — Kiro Grifols S.L Polígono Bainuetxe, 5, 2º planta, Aretxabaleta, Guipúzcoa Spain 2014 Research Development of machines and equipment to automate and control key points of hospital processes, and hospital pharmacy processes. % — — — — — Chiquito Acquisition Corp. 2711 Centerville Road Suite 400, Wilmington, Delaware, County of New Castle, United States 2017 Corporate Engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of the State of Delaware, as amended from time to time (the “DGCL”). — % — — — — This appendix forms an integral part of note 2 to the consolidated financial statements. APPENDIX I GRIFOLS, S.A. AND SUBSIDIARIES Information on Group Companies, Associates and others for the years ended 31 December 2017, 2016 and 2015 Acquisition / 31/12/2017 31/12/2016 31/12/2015 Incorporation % shares % shares % shares Name Registered Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Equity Method consolidated companies and others Nanotherapix, S.L. Avenida de la Generalitat 152 2010 Research Development, validation and production of the technology required to implement the use of genetic and cellular therapy for the treatment of human and animal pathologies. — — — — — % Aradigm Corporation 3929 Point Eden Way 2013 Research Development and commercialisation of drugs delivered by inhalation for the prevention and treatment of severe respiratory diseases. — % — % % — TiGenix N.V. Romeinse straat 12 bus 2, 3001 Leuven, Belgium 2013 Research Research and development of therapies based on stem cells taken from adipose tissue. — % — % — % Mecwins, S.L. Avenida Fernandos Casas Novoa, 37 2013 Research Research and production of nanotechnological, biotechnological and chemical solutions. — % — % — % Kiro Grifols S.L Polígono Bainuetxe, 5, 2º planta, Aretxabaleta, Guipúzcoa Spain 2014 Research Development of machines and equipment to automate and control key points of hospital processes, and hospital pharmacy processes. — — % — % — Alkahest, Inc. 3500 South DuPont Hwy, Dover, County of Kent United States 2015 Research Development novel plasma-based products for the treatment of cognitive decline in aging and disorders of the central nervous system (CNS). — % — % — % Albajuna Therapeutics, S.L Hospital Germans Trias i Pujol, carretera de Canyet, s/n, Badalona 2016 Research Development and manufacture of therapeutic antibodies against HIV. — % — % — — Interstate Blood Bank, Inc. 5700 Pleasantville Road 2016 Industrial Procuring human plasma. — % — % — — Bio Blood Components Inc. 5700 Pleasantville Road 2016 Industrial Procuring human plasma. — % — % — — Plasma Biological Services, LLC 5700 Pleasantville Road 2016 Industrial Procuring human plasma. — % — % — — Singulex, Inc. 4041 Forest Park Avenue St. Louis, Missouri 2016 Research Development of the Single Molecule Counting (SMC™) technology for clinical diagnostic and scientific discovery. — % — % — — This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Incorporation % shares % shares % shares Name Registered Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Equity Method consolidated companies and others Aigües Minerals de Vilajuiga, S.A. Carrer Sant Sebastià, 2, 17493 Vilajuïga, Girona 2017 Industrial Collection and use of mineral-medicinal waters and achievement of all necessary administrative concessions in order to facilitate their industrial extraction and find the best way to take advantage of them. % — — — — — Access Biologicals, LLC. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — Access Biologicals IC-DISC, Inc. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — Access Cell Culture, LLC. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — Access Manufacturing, LLC. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — Access Plasma, LLC. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — GigaGen Inc. 407 Cabot Road 2017 Industrial Engage in any lawful act or activity for which corporations may be organized under General Corporation Law. — % — — — — This appendix forms an integral part of note 2 to the consolidated financial statements. |
Appendix II
Appendix II | 12 Months Ended |
Dec. 31, 2017 | |
Appendix II | |
Appendix II | APPENDIX II GRIFOLS, S.A. AND SUBSIDIARIES Operating Segments for the years ended 31 December 2017, 2016 and 2015 (Expressed in thousands of Euros) Bioscience Hospital Diagnostic Bio Supplies Others Intersegments Consolidated 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Revenues from external customers ) ) ) Total operating income ) ) ) Profit/(Loss) for the segment ) ) ) ) ) ) ) Unallocated expenses ) ) ) Operating profit Finance result ) ) ) Share of profit/(loss) of equity accounted investee ) ) — ) — ) — — — — ) ) — — — ) ) Income tax expense ) ) ) Profit for the year after tax Segment assets ) ) ) Equity accounted investments — — — — — — — — — Unallocated assets — — — — — — — — — — — — — — — — — — Total assets Segment liabilities — — — — — — Unallocated liabilities — — — — — — — — — — — — — — — — — — Total liabilities Other information: Amortisation and depreciation allocated — — — — — — Amortisation and depreciation unallocated — — — — — — — — — — — — — — — Expenses that do not requirecash payments allocated ) ) ) — — — — ) — — — — ) Expenses that do not require cash payments unallocated — — — — — — — — — — — — — — — — — — ) Additions for the year of property, plant & equipment and intangible assets allocated — — — — — Additions for the year of property, plant & equipment and intangible assets unallocated — — — — — — — — — — — — — — — — — — * As a result of the creation of Bio Supplies segment and intersegments, the Group has reviewed the allocation of balances and transactions by segments. The comparative figures for years 2016 and 2015 have been restated accordingly. This appendix forms an integral part of note 6 to the consolidated financial statements APPENDIX II GRIFOLS, S.A. AND SUBSIDIARIES Reporting by geographical area for the years ended 31 December 2017, 2016 and 2015 (Expressed in thousands of Euros) Spain Rest of European Union USA + Canada Rest of World Consolidated 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net Revenue Assets by geographical area Other information: Additions for the year of property, plant & equipment and intangible assets This appendix forms an integral part of note 6 to the consolidated financial statements |
Appendix III
Appendix III | 12 Months Ended |
Dec. 31, 2017 | |
Appendix III | |
Appendix III | APPENDIX III GRIFOLS, S.A. AND SUBSIDIARIES Changes in Other Intangible Assets for the year ended 31 December 2017 (Expressed in thousands of Euros) Balances at Business Translation Balances at 31/12/2016 Additions combinations * Transfers Disposals differences 31/12/2017 Development costs — ) ) Concessions, patents, licenses brands & similar — — — ) Computer software ) ) Currently marketed products — — — — ) Other intangible assets — — — ) Total cost of intangible assets ) ) Accum. amort. of development costs ) ) — — — ) ) Accum. amort of concessions, patents, licenses, brands & similar ) ) — — — ) Accum. amort. of computer software ) ) — — ) Accum. amort. of currently marketed products ) ) — — — ) Accum. amort. of other intangible assets ) ) — — — ) Total accum. amort intangible assets ) ) — — ) Impairment of other intangible assets — ) — — — ) Carrying amount of intangible assets ) ) ) (See note 3) This appendix forms an integral part of note 8 to the consolidated financial statements. APPENDIX III GRIFOLS, S.A. AND SUBSIDIARIES Changes in Other Intangible Assets for the year ended 31 December 2016 (Expressed in thousands of Euros) Balances at Translation Balances at 31/12/2015 Additions Transfers Disposals differences 31/12/2016 Development costs — ) Concessions, patents, licenses brands & similar — — — Computer software ) Currently marketed products — — — Other intangible assets — ) Total cost of intangible assets ) Accum. amort. of development costs ) ) — — ) ) Accum. amort of concessions, patents, licenses, brands & similar ) ) — — ) ) Accum. amort. of computer software ) ) ) ) ) Accum. amort. of currently marketed products ) ) — — ) ) Accum. amort. of other intangible assets ) ) — ) ) Total accum. amort intangible assets ) ) ) ) ) Impairment of other intangible assets — — ) — — Carrying amount of intangible assets ) ) This appendix forms an integral part of note 8 to the consolidated financial statements. |
Appendix IV
Appendix IV | 12 Months Ended |
Dec. 31, 2017 | |
Appendix IV | |
Appendix IV | APPENDIX IV GRIFOLS, S.A. AND SUBSIDIARIES Movement in Property, Plant and Equipment for the year ended 31 December 2017 Balances at Additions Business Transfers Disposals Translation Balances at Cost: Land and buildings ) ) Plant and machinery ) ) Fixed Assets under construction ) — ) ) ) ) Accumulated depreciation: Buildings ) ) — — ) Plant and machinery ) ) — ) ) ) — ) Impairment of other property, plant and equipment ) — — — ) Carrying amount ) ) ) (See note 3) This appendix forms an integral part of note 9 to the consolidated financial statements. APPENDIX IV Movement in Property, Plant and Equipment 31 December 2016 Balances at Additions Transfers Disposals Translation Balances at Cost: Land and buildings ) Plant and machinery ) Fixed Assets under construction ) — ) ) Accumulated depreciation: Buildings ) ) ) ) ) Plant and machinery ) ) ) ) ) ) ) ) Impairment of other property, plant and equipment ) — — ) ) Carrying amount ) ) This appendix forms an integral part of note 9 to the consolidated financial statements. |
Appendix V
Appendix V | 12 Months Ended |
Dec. 31, 2017 | |
Appendix V | |
Appendix V | APPENDIX V GRIFOLS, S.A. AND SUBSIDIARIES Statement of Liquidity for Distribution of Interim Dividend 2017 (Expressed in thousands of Euros) Thousands of Euros Forecast profits distributable for 2017: Projected profits net of taxes until 31/12/2017 Less, charge required to legal reserve — Estimated profits distributable for 2017 Interim dividend distributed Forecast cash for the period 15 December 2017 to 15 December 2018: Cash balances at 15 December 2017 — Projected amounts collected Projected payments, including interim dividend Projected cash balances at 15 December 2018 This appendix forms an integral part of note 15 to the consolidated financial statements. APPENDIX V Thousands of Euros Forecast profits distributable for 2016: Projected profits net of taxes until 31/12/2016 Less, charge required to legal reserve — Estimated profits distributable for 2016 Interim dividend distributed Forecast cash for the period 07 December 2016 to 07 December 2017: Cash balances at 07 December 2016 Projected amounts collected Projected payments, including interim dividend Projected cash balances at 07 December 2017 This appendix forms an integral part of note 15 to the consolidated financial statements. |
Significant Accounting Polici44
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
Subsidiaries and associates | (a) Subsidiaries and associates Subsidiaries are entities, including special purpose entities (SPE), over which the Group exercises control, either directly or indirectly, through subsidiaries. The Group controls a subsidiary when it has the substantive rights in force that provide the ability to manage relevant activities. The Group is exposed or has the right to variable returns for its involvement in the subsidiaries when the returns obtained vary depending on the economic performance of the subsidiaries. The income, expenses and cash flows of subsidiaries are included in the Consolidated Financial Statements from the date of acquisition, which is when the Group takes control. Subsidiaries are excluded from the consolidated Group from the date on which control is lost. Transactions and balances with Group companies and unrealized gains or losses have been eliminated upon consolidation. The accounting policies of subsidiaries have been adapted to those of the Group for transactions and other events in similar circumstances. The financial statements of consolidated subsidiaries have been prepared as of the same date and for the same reporting period as the financial statements of the Company. 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 entities. 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 Group or other entities, are considered when assessing whether an entity has significant influence. Investments in associates are accounted for using the equity method from the date that significant influence commences until the date that significant influence ceases. Investments in associates are initially recognized at acquisition cost, including any cost directly attributable to the acquisition and any consideration receivable or payable contingent on future events or on compliance with certain conditions. The excess of the cost of the investment over the Group’s share of the fair values of the identifiable net assets is recognized as goodwill, which is included in the carrying amount of the investment. Any shortfall, once the cost of the investment and the identification and measurement of the associate’s net assets have been evaluated, is recognized as income when determining the investor’s share of the profit and loss of the associate for the year in which it was acquired. The accounting policies of associates have been harmonized in terms of timing and measurement, applying the policies described for subsidiaries. The Group’s share of the profit and loss of an associate from the date of acquisition is recognized as an increase or decrease in the value of the investments, with a credit or debit to share of the profit and loss for the year of “equity-accounted investees” in the consolidated statement of profit and loss (consolidated statement of comprehensive income). The Group’s share of other comprehensive income of associates from the date of acquisition is recognized as an increase or decrease in the investments in associates with a balancing entry recognized by type in other comprehensive income. The distribution of dividends is recognized as a decrease in the value of the investment. The Group’s share of profit and loss, including impairment losses recognized by the associates, is calculated based on income and expenses arising from application of the acquisition method. The Group’s share of the profit and loss of an associate and changes in equity is calculated to the extent of the Group’s interest in the associate at year end and does not reflect the possible exercise or conversion of potential voting rights. However, the Group’s share is calculated taking into account the possible exercise of potential voting rights and other derivative financial instruments which, in substance, currently allow access to the economic benefits associated with the interests held, such as entitlement to a share in future dividends and changes in the value of associates. Information on the subsidiaries and associates included in the consolidated Group is presented in Appendix I. |
Business combinations | (b) Business combinations On the date of transition to IFRS-EU, 1 January 2004, the Group applied the exception permitted under IFRS 1 The Group applies the revised IFRS 3 “Business combinations” in transactions made subsequent to 1 January 2010. The Group applies the acquisition method for business combinations. The acquisition date is the date on which the Group obtains control of the acquiree. Business combinations made subsequent to 1 January 2010 The cost of the business combination is calculated as the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred or assumed, equity instruments issued and any additional consideration contingent on future events or the fulfilment of certain conditions, in exchange for control of the acquiree. The consideration paid excludes all amounts that do not form part of the exchange for the acquired business. Acquisition-related costs are accounted for as expenses when incurred. Share increase costs are recognized as equity when the increase takes place and borrowing costs are deducted from the financial liability when it is recognized. At the acquisition date the Group recognizes at fair value the assets acquired and liabilities assumed. Liabilities assumed include any contingent liabilities that represent present obligations arising from past events for which the fair value can be reliably measured. The Group also recognizes indemnification assets transferred by the seller at the same time and following the same measurement criteria as the item that is subject to indemnification from the acquired business, taking into consideration, where applicable, the insolvency risk and any contractual limit on the indemnity amount. This criterion does not include non-current assets or disposal groups of assets which are classified as held for sale, long-term defined benefit employee benefit liabilities, share-based payment transactions, deferred tax assets and liabilities and intangible assets arising from the acquisition of previously transferred rights. Assumed assets and liabilities are classified and designated for subsequent measurement in accordance with the contractual terms, economic conditions, operating or accounting policies and other factors that exist at the acquisition date, except for leases and insurance contracts. The excess between the consideration transferred and the value of net assets acquired and liabilities assumed, less the value assigned to non-controlling interests, is recognized as goodwill. Where applicable, any shortfall, after evaluating the consideration transferred, the value assigned to non-controlling interests and the identification and measurement of net assets acquired, is recognized in profit and loss. When a business combination has been provisionally determined, net identifiable assets have initially been recognized at their provisional value, and any adjustments made during the measurement period have been recorded as if they had been known at that date. Where applicable, comparative figures for the prior year have been restated. Adjustments to the provisional values only reflect information relating to events and circumstances existing at the acquisition date and which, had they been known, would have affected the amounts recognized at that date. Once this period has elapsed, adjustments are only made to initial values when errors must be corrected. Any potential benefits arising from tax losses and other deferred tax assets of the acquiree that have not been recorded as they did not qualify for recognition at the acquisition date, are accounted for as income tax revenue, provided the adjustments were not made during the measurement period. The contingent consideration is classified in accordance with underlying contractual terms as a financial asset or financial liability, equity instrument or provision. Provided that subsequent changes to the fair value of a financial asset or financial liability do not relate to an adjustment of the measurement period, they are recognized in consolidated profit and loss. The contingent consideration classified, where applicable, as equity is not subject to subsequent change, with settlement being recognized in equity. The contingent consideration classified, where applicable, as a provision is recognized subsequently in accordance with the relevant measurement standard. Business combinations made prior to 1 January 2010 The cost of the business combination is calculated as the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred or assumed, and equity instruments issued by the Group, in exchange for control of the acquiree, plus any costs directly attributable to the business combination. Any additional consideration contingent on future events or the fulfilment of certain conditions is included in the cost of the combination provided that it is probable that an outflow of resources embodying economic benefits will be required and the amount of the obligation can be reliably estimated. Subsequent recognition of contingent considerations or subsequent variations to contingent considerations is recognized as a prospective adjustment to the cost of the business combination. Where the cost of the business combination exceeds the Group’s interest in the fair value of the identifiable net assets of the entity acquired, the difference is recognized as goodwill, whilst the shortfall, once the costs of the business combination and the fair values of net assets acquired have been reconsidered, is recognized in profit and loss. |
Non-controlling interest | (c) Non-controlling interests Non-controlling interests in subsidiaries acquired after 1 January 2004 are recognized at the acquisition date at the proportional part of the fair value of the identifiable net assets. Non-controlling interests in subsidiaries acquired prior to the transition date were recognized at the proportional part of the equity of the subsidiaries at the date of first consolidation. Non-controlling interests are disclosed in the consolidated balance sheet under equity separately from equity attributable to the Parent. Non-controlling interests’ share in consolidated profit and loss for the year (and in consolidated comprehensive income for the year) is disclosed separately in the consolidated statement of profit and loss (consolidated statement of comprehensive income). The consolidated profit and loss for the year, consolidated comprehensive income and changes in equity of the subsidiaries attributable to the Group and non-controlling interests after consolidation adjustments and eliminations, is determined in accordance with the percentage ownership at year end, without considering the possible exercise or conversion of potential voting rights. However, Group and non-controlling interests are calculated taking into account the possible exercise of potential voting rights and other derivative financial instruments which, in substance, currently allow access to the economic benefits associated with the interests held, such as entitlement to a share in future dividends and changes in the value of subsidiaries. Profit and loss and each component of other comprehensive income are assigned to equity attributable to shareholders of the Parent and to non-controlling interests in proportion to their interest, although this implies a balance receivable from non-controlling interests. Agreements signed between the Group and the non-controlling interests are recognized as a separate transaction. The increase and reduction of non-controlling interests in a subsidiary in which control is retained is recognized as an equity instrument transaction. Consequently, no new acquisition cost arises on increases, nor is a gain recorded on reductions; rather, the difference between the consideration transferred or received and the carrying amount of the non-controlling interests is recognized in the reserves of the investor, without prejudice to reclassifying consolidation reserves and reallocating other comprehensive income between the Group and the non-controlling interests. When a Group’s interest in a subsidiary diminishes, non-controlling interests are recognized at their share of the net consolidated assets, including goodwill. |
Joint arrangements | (d) Joint arrangements Joint arrangements are those in which there is a contractual agreement to share the control over an economic activity, in such a way that the decisions over relevant activities require the unanimous consent of the Group and the remaining venturers. Investments in joint arrangements are accounted for using the equity method. The acquisition cost of investments in joint arrangements is determined consistently with that established for investments in associates. |
Foreign currency transactions and balances | (e) Foreign currency transactions and balances (i) Functional and presentation currency The Consolidated Financial Statements are presented in thousands of Euros, which is the functional and presentation currency of the Parent. (ii) Foreign currency transactions, balances and cash flows Foreign currency transactions are translated into the functional currency using the previous month’s exchange rate for all transactions performed 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 thousands of 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. Non-monetary assets measured at fair value have been translated into thousands of Euros at the exchange rate at the date that the fair value was determined. In the consolidated statement of cash flows, cash flows from foreign currency transactions have been translated into thousands of Euros at the exchange rates prevailing at the dates the cash flows occur. The effect of exchange rate fluctuations on cash and cash equivalents denominated in foreign currencies is recognized separately in the statement of cash flows as “Effect of exchange rate fluctuations on cash and cash equivalents”. Exchange gains and losses arising on the settlement of foreign currency transactions and the translation into thousands of Euros of monetary assets and liabilities denominated in foreign currencies are recognized in profit and loss. (iii) Translation of foreign operations The translation into thousands of Euros of foreign operations for which the functional currency is not the currency of a hyperinflationary economy is based on the following criteria: · Assets and liabilities, including goodwill and net asset adjustments derived from the acquisition of the operations, including comparative amounts, are translated at the closing rate at the reporting date; · Income and expenses, including comparative amounts, are translated using the previous month’s exchange rate for all transactions performed during the current month. This method does not differ significantly from using the exchange rate at the date of the transaction; · Translation differences resulting from application of the above criteria are recognized in other comprehensive income. |
Borrowing costs | (f) Borrowing costs In accordance with IAS 23 “Borrowing Costs”, since 1 January 2009 the Group recognizes borrowing costs directly attributable to the purchase, construction or production of qualifying assets as an increase in the value of these assets. Qualifying assets are those which require a substantial period of time before they can be used or sold. To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalization is determined as the actual borrowing costs incurred, less any investment income on the temporary investment of those funds. Capitalized borrowing costs corresponding to general borrowing are calculated as the weighted average of the qualifying assets without considering specific funds. The amount of borrowing costs capitalized cannot exceed the amount of borrowing costs incurred during that period. The capitalized borrowing costs include adjustments to the carrying amount of financial liabilities arising from the effective portion of hedges entered into by the Group. The Group begins capitalizing borrowing costs as part of the cost of a qualifying asset when it incurs expenditure for the asset, interest is accrued, and it undertakes activities that are necessary to prepare the asset for its intended use or sale, and ceases capitalizing borrowing costs when all or substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Nevertheless, capitalization of borrowing costs is suspended when active development is interrupted for extended periods. |
Property, plant and equipment | (g) Property, plant and equipment (i) Initial recognition Property, plant and equipment are recognized at cost or deemed cost, less accumulated depreciation and any accumulated impairment losses. The cost of self-constructed assets is determined using the same principles as for an acquired asset, while also considering the criteria applicable to production costs of inventories. Capitalized production costs are recognized by allocating the costs attributable to the asset to “Self-constructed non-current assets” in the consolidated statement of profit and loss. At 1 January 2004 the Group opted to apply the exemption regarding fair value and revaluation as deemed cost as permitted by IFRS 1 First time Adoption of International Financial Reporting Standards. (ii) Depreciation Property, plant and equipment are depreciated by allocating the depreciable amount of an asset on a systematic basis over its useful life. The depreciable amount is the cost or deemed cost of an asset, less its residual value. The Group determines the depreciation charge separately for each item for a component of property, plant and equipment with a cost that is significant in relation to the total cost of the asset. Property, plant and equipment are depreciated using the following criteria: Depreciation method Rates Buildings Straight line 1% - 3% Other property, technical equipment and machinery Straight line 4%-10% Other property, plant and equipment Straight line 7% - 33% The Group reviews residual values, useful lives and depreciation methods at each financial year end. Changes to initially established criteria are accounted for as a change in accounting estimates. (iii) Subsequent recognition Subsequent to initial recognition of the asset, only those costs incurred which will probably generate future profits and for which the amount may reliably be measured are capitalized. Costs of day-to-day servicing are recognized in profit and loss as incurred. Replacements of property, plant and equipment which qualify for capitalization are recognized 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. (iv) Impairment The Group tests for impairment and reversals of impairment losses on property, plant and equipment based on the criteria set out in note 4(i) below. |
Intangible assets | (h) Intangible assets (i) Goodwill Goodwill is generated on the business combinations and is calculated using the criteria described in the section on business combinations. Goodwill is not amortized, but is tested for impairment annually or more frequently whenever there is an indication that goodwill may be impaired. Goodwill acquired in business combinations is allocated to the cash-generating units (CGUs) or groups of CGUs which are expected to benefit from the synergies of the business combination and the criteria described in note 7 are applied. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. (ii) Internally generated intangible assets Any research and development expenditure incurred during the research phase of projects is recognized as an expense when incurred. Costs related with development activities are capitalized when: · The Group has technical studies that demonstrate the feasibility of the production process; · The Group has undertaken a commitment to complete production of the asset, to make it available for sale or internal use; · The asset will generate sufficient future economic benefits; · The Group has sufficient technical and financial resources to complete development of the asset and has devised budget control and cost accounting systems that enable monitoring of budgetary costs, modifications and the expenditure actually attributable to the different projects. The cost of internally generated assets by the Group is calculated using the same criteria established for determining production costs of inventories. The production cost is capitalized by allocating the costs attributable to the asset to self-constructed non-current assets in the consolidated statement of profit and loss. Expenditure on activities that contribute to increasing the value of the different businesses in which the Group as a whole operates is expensed when incurred. Replacements or subsequent costs incurred on intangible assets are generally recognized as an expense, except where they increase the future economic benefits expected to be generated by the assets. (iii) Other intangible assets Other intangible assets are carried at cost, or at fair value if they arise on business combinations, less accumulated amortization and impairment losses. Intangible assets with indefinite useful lives are not amortized but tested for impairment at least annually. (iv) Intangible assets acquired in business combinations The cost of identifiable intangible assets acquired in the business combination of Hologic includes the fair value of the R&D projects and the Intellectual Property-Patents. The cost of identifiable intangible assets acquired in the business combination of Novartis includes the fair value of the existing royalty agreements. The cost of identifiable intangible assets acquired in the business combination of the Progenika Group includes the fair value of the currently marketed products sold and which are classified under “Other intangible assets” and “Development costs”. The cost of identifiable intangible assets acquired in the Talecris business combination includes the fair value of currently marketed products sold and which are classified under “Other intangible assets”. (v) Useful life and amortization rates The Group assesses whether the useful life of each intangible asset acquired is finite or indefinite. An intangible asset is regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the asset will generate net cash inflows. Intangible assets with finite useful lives are amortized by allocating the depreciable amount of an asset on a systematic basis over its useful life, by applying the following criteria: Amortisation method Rates Development expenses Straight line 10% Concessions, patents, licences, trademarks and similar Straight line 7% - 20% Computer software Straight line 33% Currently marketed products Straight line 3% - 10% The depreciable amount is the cost or deemed cost of an asset, less its residual value. The Group does not consider the residual value of its intangible assets to be material. The Group reviews the residual value, useful life and amortization method for intangible assets at each financial year end. Changes to initially established criteria are accounted for as a change in accounting estimates. |
Impairment of goodwill, other intangible assets and other non-financial assets subject to depreciation or amortization | (i) Impairment of goodwill, other intangible assets and other non-financial assets subject to depreciation or amortization The Group evaluates whether there are indications of possible impairment losses on non-financial assets subject to amortization or depreciation, to verify whether the carrying amount of these assets exceeds the recoverable amount. The Group tests goodwill, intangible assets with indefinite useful lives and intangible assets with finite useful lives that are not available for use for potential impairment at least annually, irrespective of whether there is any indication that the assets may be impaired. The recoverable amount of the assets is the higher of their fair value less costs of disposal and their value in use. An asset’s value in use is calculated based on an estimate of the future cash flows expected to derive from the use of the asset, expectations about possible variations in the amount or timing of those future cash flows, the time value of money, the price for bearing the uncertainty inherent in the asset and other factors that market participants would reflect in pricing the future cash flows deriving from the asset. Negative differences arising from comparison of the carrying amounts of the assets with their recoverable amounts are recognized in the consolidated statement of profit and loss. Recoverable amount is determined for each individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If this is the case, recoverable amount is determined for the cash-generating unit (CGU) to which the asset belongs. Impairment losses recognized for cash-generating units are first allocated to reduce, where applicable, the carrying amount of goodwill allocated to the CGU and then to the other assets of the CGU pro rata on the basis of the carrying amount of each asset. The carrying amount of each asset may not be reduced below the highest of its fair value less costs of disposal, its value in use and zero. At the end of each reporting period the Group assesses whether there is any indication that an impairment loss recognized 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 recognized in consolidated profit and loss. 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 amortization, had no impairment loss been recognized. A reversal of an impairment loss for a CGU is allocated to the assets of each unit, except goodwill, pro rata with the carrying amounts of those assets. The carrying amount of an asset may not be increased above the lower of its recoverable amount and the carrying amount that would have been disclosed, net of amortization or depreciation, had no impairment loss been recognized. |
Leases | (j) Leases (i) Lessee accounting records The Group has rights to use certain assets through lease contracts. Leases in which the Group 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 Group recognizes 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. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are recognized as an expense in the years in which they are incurred. Operating leases Lease payments under an operating lease (excluding incentives) are recognized as an expense on a straight-line basis unless another systematic basis is representative of the time pattern of the user’s benefit. (ii) Leasehold investments Non-current investments in properties leased from third parties are recognized on the basis of the same criteria for property, plant and equipment. Investments are amortized over the lower of their useful lives and the term of the lease contract. The lease term is consistent with that established for recognition of the lease. (iii) Sale and leaseback transactions Any profit on sale and leaseback transactions that meet the conditions of a finance lease is deferred over the term of the lease. When the leaseback is classified as an operating lease: If the transaction is established at fair value, any profit and loss on the sale is recognized immediately in the consolidated statement of profit and loss for the year; If the sale price is below fair value, any profit and loss is recognized immediately in the consolidated statement of profit and loss. However, if the loss is compensated for by future lease payments at below market price, it is deferred in proportion to the lease payments over the period for which the asset is to be used. |
Financial instruments | (k) Financial instruments (i) Classification of financial instruments Financial instruments are classified on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, a financial asset and an equity instrument set out in IAS 32, Financial Instruments: Presentation. Financial instruments are classified into the following categories for valuation purposes: financial assets and financial liabilities at fair value through profit and loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets and financial liabilities. Financial instruments are classified into different categories based on the nature of the instruments and the Group’s intentions on initial recognition. Regular way purchases and sales of financial assets are recognized using trade date accounting, i.e. when the Group commits itself to purchase or sell an asset. a) Financial assets and liabilities at fair value through profit and loss Financial assets and financial liabilities at fair value through profit and loss are those which are classified as held for trading or which the Group designated as such on initial recognition. A financial asset or financial liability is classified as held for trading if: · It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; · It forms part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent pattern of short-term profit-taking, or · It is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument. Financial assets and financial liabilities at fair value through profit and loss are initially recognized at fair value. Transaction costs directly attributable to the acquisition or issue are recognized as an expense when incurred. After initial recognition, they are recognized at fair value through profit and loss. The Group does not reclassify any financial assets or liabilities from or to this category while they are recognized in the consolidated balance sheet. b) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those classified in other financial asset categories. These assets are recognized initially at fair value, including transaction costs, and subsequently measured at amortized cost using the effective interest method. c) Financial assets and financial liabilities carried at cost Investments in equity instruments whose fair value cannot be reliably measured and derivative instruments that are linked to these instruments and that must be settled by delivery of such unquoted equity instruments, are measured at cost. Nonetheless, if the financial assets or liabilities can be reliably measured subsequently on an ongoing basis, they are accounted for at fair value and any gain or loss is recognized in accordance with their classification. (ii) Offsetting principles A financial asset and a financial liability are offset only when the Group currently has the legally enforceable right to offset the recognized amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. (iii) Fair value When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorized within different levels of a fair value hierarchy based on the inputs used in the valuation techniques as follows: · Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. · Level 2: inputs other than prices included in Level 1 that are observable for the asset or liability, either directly (i.e. derived from prices) or indirectly. · Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability are categorized within different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. (iv) Amortized cost The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction for impairment or uncollectibility. (v) Impairment of financial assets carried at cost The amount of the impairment loss on assets carried at cost is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses cannot be reversed and are therefore recognized directly against the value of the asset and not as an allowance account. (vi) Impairment of financial assets carried at amortized cost In the case of financial assets carried at amortized cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. For variable income financial assets, the effective interest rate corresponding to the measurement date under the contractual conditions is used. The Group recognizes impairment losses and unrecoverable loans and receivables and debt instruments by recognizing an allowance account for financial assets. When impairment and uncollectibility are considered irreversible, their carrying amount is eliminated against the allowance account. The impairment loss is recognized in profit and loss and may be reversed in subsequent periods if the decrease can be objectively related to an event occurring after the impairment has been recognized. The loss can only be reversed to the limit of the amortized cost of the assets had the impairment loss not been recognized. The impairment loss is reversed against the allowance account. (vii) Available for sale financial assets Available for sale financial assets are those non-derivative financial assets that are designated as available for sale or are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit and loss. A financial asset that the Group pretends to held to maturity or that it is a loan or receivable can also be designated as available for sale in the initial recognition. This category usually includes all debt securities traded on active markets that have not been designated as held-to-maturity, as well as equity investments that have not been classified as fair value through profit and loss. A gain or loss on an available for sale financial asset shall be recognized in other comprehensive income, except for impairment losses and foreign exchange gains and losses, until the financial asset is derecognized. When a decline in the fair value of an available for sale financial asset has been recognized in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income shall be reclassified from equity to profit and loss as a reclassification adjustment even though the financial asset has not been derecognized. (viii) Financial liabilities Financial liabilities, including trade and other payables, which are not classified at fair value through profit and loss, are initially recognized at fair value less any transaction costs that are directly attributable to the issue of the financial liability. After initial recognition, liabilities classified under this category are measured at amortized cost using the effective interest method. (ix) Derecognition of financial assets The Group applies the criteria for derecognition of financial assets to part of a financial asset or part of a group of similar financial assets or to a financial asset or group of similar financial assets. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Where the Group retains the contractual rights to receive cash flows, it only derecognizes financial assets when it has assumed a contractual obligation to pay the cash flows to one or more recipients and if the following requirements are met: · Payment of the cash flows is conditional on their prior collection; · The Group is unable to sell or pledge the financial asset, and · The cash flows collected on behalf of the eventual recipients are remitted without material delay and the Group is not entitled to reinvest the cash flows. This criterion is not applicable to investments in cash or cash equivalents made by the Group during the settlement period from the collection date to the date of required remittance to the eventual recipients, provided that interest earned on such investments is passed on to the eventual recipients. If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, it determines whether it has retained control of the financial asset. In this case: · If the Group has not retained control, it derecognizes the financial asset and recognizes separately as assets or liabilities any rights and obligations created or retained in the transfer. · If the Group has retained control, it continues to recognise the financial asset to the extent of its continuing involvement in the financial asset and recognizes an associated liability. The extent of the Group’s continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the transferred asset. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. The associated liability is measured in such a way that the carrying amount of the transferred asset and the associated liability is equal to the amortized cost of the rights and obligations retained by the Group, if the transferred asset is measured at amortized cost, or to the fair value of the rights and obligations retained by the Group, if the transferred asset is measured at fair value. The Group continues to recognise any income arising on the transferred asset to the extent of its continuing involvement and recognizes any expense incurred on the associated liability. Recognized changes in the fair value of the transferred asset and the associated liability are accounted for consistently with each other in profit and loss or equity, following the general recognition criteria described previously, and are not offset. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the consideration received is recognized in liabilities. Transaction costs are recognized in profit and loss using the effective interest method. (x) Derecognition and modifications of financial liabilities A financial liability, or part of it, is derecognized when the Group 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 Group and the counterparty or substantial modifications of initially recognized liabilities are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability, providing the instruments have substantially different terms. The Group considers the terms are 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 recognized 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 amortized 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 recognized in profit and loss. |
Equity instruments | (l) Equity instruments The Group’s acquisition of equity instruments of the Parent is recognized separately at cost of acquisition in the consolidated balance sheet as a reduction in equity, regardless of the motive of the purchase. Any gains or losses on transactions with treasury equity instruments are not recognized in consolidated profit and loss. The subsequent redemption of Parent shares, where applicable, leads to a reduction in share capital in an amount equivalent to the par value of such shares. Any positive or negative difference between the cost of acquisition and the par value of the shares is debited or credited to reserves. Transaction costs related with treasury equity instruments, including issue costs related to a business combination, are accounted for as a reduction in equity, net of any tax effect. |
Inventories | (m) Inventories Inventories are measured at the lower of cost and net realizable value. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include costs directly related to the units of production and a systematic allocation of fixed and variable production overheads that are incurred in converting materials into finished goods. The allocation of fixed indirect overheads is based on the higher of normal production capacity or actual production. The raw material used to produce haemoderivatives is human plasma, which is obtained from our donation centers using the plasmapheresis method. The cost of inventories includes the amount paid to plasma donors, or the amount billed by the seller when purchased from third parties, as well as the cost of products and devices used in the collection process, rental expenses and storage. This plasma has to be stored before use, which is an essential part of the production process. During the storage period, the plasma undergoes various virological tests and should be kept in quarantine in accordance with FDA and European Medicines Agency regulations, in order to guarantee that all the plasma is suitable for use in the production process. To the extent that plasma storage costs are necessary to the production process, they are included as cost of inventories. Indirect costs such as general management and administration costs are recognized as expenses in the period in which they are incurred. The cost of raw materials and other supplies and the cost of merchandise are allocated to each inventory unit on a weighted average cost basis. The transformation cost is allocated to each inventory unit on a FIFO (first-in, first-out) basis. The Group uses the same cost model for all inventories of the same nature and with a similar use. Volume discounts extended by suppliers are recognized as a reduction in the cost of inventories when it is probable that the conditions for discounts to be received will be met. Discounts for prompt payment are recognized as a reduction in the cost of the inventories acquired. When the cost of inventories exceeds net realizable value, materials are written down to net realizable value, which is understood to be: · For raw materials and other supplies, replacement cost. Nevertheless, raw materials and other supplies are not written down below cost if the finished goods into which they will be incorporated are expected to be sold at or above cost of production; · Merchandise and finished goods, estimated selling price less costs to sell; · Work in progress, the estimated selling price of related finished goods, less the estimated costs of completion and the estimated costs necessary to make the sale. The previously recognized write-down is reversed against profit and loss when the circumstances that previously caused inventories to be written down no longer exist or when there is clear evidence of an increase in net realizable value because of changed economic circumstances. The reversal of the write-down is limited to the lower of the cost and revised net realizable value of the inventories. Write-downs may be reversed with a credit to “Changes in inventories of finished goods and work in progress” and “Supplies”. |
Cash and cash equivalents | (n) 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. The Group classifies cash flows relating to interest received and paid as operating activities, and dividends received and distributed are classified under investing and financing activities, respectively. |
Government grants | (o) Government grants Government grants are recognized when there is reasonable assurance that they will be received and that the Group will comply with the conditions attached. (i) Capital grants Outright capital grants are initially recognized as deferred income in the consolidated balance sheet. Income from capital grants is recognized in the consolidated statement of profit and loss in line with the depreciation of the corresponding financed assets. (ii) Operating grants Operating grants received to offset expenses or losses already incurred, or to provide immediate financial support not related to future disbursements, are recognized in the consolidated statement of profit and loss. (iii) Interest rate grants Financial liabilities comprising implicit assistance in the form of below-market interest rates are initially recognized at fair value. The difference between this value, adjusted where necessary for the issue costs of the financial liability and the amount received, is recognized as a government grant based on the nature of the grant awarded. |
Employee benefits | (p) Employee benefits (i) Defined contribution plans The Group recognizes the contributions payable to a defined contribution plan in exchange for a service in the period in which contributions are accrued. Accrued contributions are recognized as an employee benefit expense in the corresponding consolidated statement of profit and loss in the year that the contribution was made. (ii) Termination benefits Termination benefits are recognized at the earlier of the date when the Group can no longer withdraw the offer of those benefits and when the Group recognizes costs for a restructuring that involves the payment of termination benefits. For termination benefits payable as a result of an employee’s decision to accept an offer of benefits, the time when the Group can no longer withdraw the offer of termination benefits is the earlier of when the employee accepts the offer and when a restriction on the Group’s ability to withdraw the offer takes effect. For termination benefits payable as a result of the Group’s decision to make an employee redundant, the Group can no longer withdraw the offer when it has informed the affected employees or union representatives of the plan and the actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made. The plan must identify the number of employees to be made redundant, their job classifications or functions and their locations and the expected completion date. The plan must also establish the termination benefits that employees will receive in sufficient detail that employees can determine the type and amount of benefits they will receive when their employment is terminated. If the Group expects to settle the termination benefits in full more than twelve months after year end, the liability is discounted using the market yield on high quality corporate bonds. (iii) Short-term employee benefits The Group recognizes the expected cost of short-term employee benefits in the form of accumulating compensated absences when the employees render service that increases their entitlement to future compensated absences. In the case of non-accumulating compensated absences, the expense is recognized when the absences occur. The Group recognizes the expected cost of profit-sharing and bonus plans when it has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. (iv) Restricted Share Unit Retention Plan (RSU) The Group gives share-based payments to certain employees who render services to the Company. The fair value of the services received is determined based on the estimated fair value of the shares given at the grant date. Because the equity instruments granted do not vest until the employees complete a specified period of service, those services are accounted for during the vesting period in the income statement as an expense for the year, with the corresponding increase in equity. The amount recognized corresponds to that settled once the agreed terms have been met and it will not be adjusted or revalued during the accrual period, as the commitment is settled in the form of shares. The total amount recognized is calculated based on the incentive payable in shares, increasing in line with percentages agreed by the Group. If an employee decides to leave his/her job prior to the end of the accrual period, he/she will only receive the agreed incentive in the form of shares and the Company will be able to choose whether to settle in cash or using equity instruments. |
Provisions | (q) Provisions Provisions are recognized when the Group has a present obligation (legal or implicit) 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 recognized 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 recognized 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 embodying economic benefits will be required to settle the obligation, the provision is reversed against the consolidated statement of profit and loss item where the corresponding expense was recognized. |
Revenue recognition | (r) Revenue recognition Revenue from the sale of goods or services is measured at the fair value of the consideration received or receivable. Revenue is presented net of VAT and any other amounts or taxes which are effectively collected on the behalf of third parties. Volume or other types of discounts for prompt payment are recognized as a reduction in revenues if considered probable at the time of revenue recognition. (i) Sale of goods The Group recognizes revenue from the sale of goods when: · It has transferred to the buyer the significant risks and rewards of ownership of the goods; · It retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; · The amount of revenue and the costs incurred or to be incurred can be measured reliably; · It is probable that the economic benefits associated with the transaction will flow to the Group; and · The costs incurred or to be incurred in respect of the transaction can be measured reliably. The Group participates in the government-managed Medicaid programs in the United States, accounting for Medicaid rebates by recognizing an accrual at the time a sale is recorded for an amount equal to the estimated claims for Medicaid rebates attributable to the sale. Medicaid rebates are estimated based on historical experience, legal interpretations of the applicable laws relating to the Medicaid program and any new information regarding changes in the program regulations and guidelines that would affect rebate amounts. Outstanding Medicaid claims, Medicaid payments and inventory levels are analyzed for each distribution channel and the accrual is adjusted periodically to reflect actual experience. While rebate payments are generally made in the following or subsequent quarter, any adjustments for actual experience have not been material. As is common practice in the sector, the purchase contracts signed by some customers with the Group entitle these customers to price discounts for a minimum purchase volume, volume discounts or prompt payment discounts. The Group recognizes these discounts as a reduction in sales and receivables in the same month that the corresponding sales are invoiced based on the customer’s actual purchase figures or on past experience when the customer’s actual purchases will not be known until a later date. In the USA, the Group enters into agreements with certain customers to establish contract pricing for the products, which these entities purchase from the authorized wholesaler or distributor (collectively, wholesalers) of their choice. Consequently, when the products are purchased from wholesalers by these entities at the contract price which is less than the price charged by the Group to the wholesaler, the Group provides the wholesaler with a credit referred to as a chargeback. The Group records the chargeback accrual at the time of the sale. The allowance for chargebacks is based on Group’s estimate of the wholesaler inventory levels, and the expected sell-through of the products by the wholesalers at the contract price based on historical chargeback experience and other factors. The Group periodically monitors the factors that influence the provision for chargebacks, and makes adjustments when it considers that actual chargebacks may differ from established allowances. These adjustments occur in a relatively short period of time. As these chargebacks are typically settled within 30 to 45 days of the sale, adjustments for actual experience have not been material. (ii) Services rendered Revenues associated with the rendering of service transactions are recognized by reference to the stage of completion at the consolidated balance sheet date when the outcome of the transaction can be estimated reliably. The outcome of a transaction can be estimated reliably when revenues, the stage of completion, the costs incurred and the costs to complete the transaction can be estimated reliably and it is probable that the economic benefits derived from the transaction will flow to the Group. When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognized only to the extent of costs incurred that are recoverable. (iii) Interest income Until June 2012 the Group has been recognizing interest receivable from the different Social Security affiliated bodies in Spain, to which it provides goods or services, on an accrual basis, and only for those bodies to which historically claims have been made and from which interest has been collected. As a result of the terms imposed by the Spanish Government in 2012 regarding the waiver of late payment interest on overdue receivables, the Group modified its estimate regarding late payment interest. Since June 2012 the Group has only been recognizing late payment interest on receivables from Social Security affiliated bodies on the date on which delayed invoices are collected, as it is highly likely that they will be collected as of that date provided. |
Income taxes | (s) Income taxes The income tax expense or tax income for the year comprises current tax and deferred tax. Current tax is the amount of income taxes payable or recoverable in respect of the consolidated taxable profit or consolidated tax loss for the year. 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. Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences, whereas deferred tax assets are the amounts of income taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused tax losses, and the carryforward of unused tax credits. Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base. Current and deferred tax are recognized as income or an expense and included in profit and loss for the year, except to the extent that the tax arises from a transaction or event which is recognized, in the same or a different year, directly in equity, or from a business combination. (i) Taxable temporary differences Taxable temporary differences are recognized 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; They are associated with investments in subsidiaries over which the Group is able to control the timing of the reversal of the temporary difference and it is not probable that the temporary difference will reverse in the foreseeable future. (ii) Deductible temporary differences Deductible temporary differences are recognized provided that: It is probable that sufficient taxable income will be available against which the deductible temporary difference can be utilized, unless the differences arise 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; The temporary differences are associated with investments in subsidiaries to the extent that the difference will reverse in the foreseeable future and sufficient taxable income is expected to be generated against which the temporary difference can be offset. Tax planning opportunities are only considered when assessing the recoverability of deferred tax assets and if the Group intends to use these opportunities or it is probable that they will be utilized. (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 realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted. The tax consequences that would follow from the manner in which the Group 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. At year end the Group reviews the fair value of deferred tax assets to write down the balance if it is not probable that sufficient taxable income will be available to apply the tax asset. Deferred tax assets which do not meet the above conditions are not recognized in the consolidated balance sheet. At year end the Group assesses whether deferred tax assets which were previously not recognized now meet the conditions for recognition. (iv) Offset and classification The Group only offsets current tax assets and current tax liabilities if it has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The Group only offsets deferred tax assets and liabilities where it has a legally enforceable right, where these relate to income taxes levied by the same taxation authority and where the taxation authority permits the entity to settle on a net basis, or to realize the asset and settle the liability simultaneously for each of the future years in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered. Deferred tax assets and liabilities are recognized in the consolidated balance sheet under non-current assets or liabilities, irrespective of the expected date of recovery or settlement. |
Segment reporting | (t) Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment, assess its performance and, based on which, differentiated financial information is available. |
Classification of assets and liabilities as current and non-current | (u) Classification of assets and liabilities as current and non-current The Group classifies assets and liabilities in the consolidated 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 realized or are intended for sale or consumption in the Group’s normal operating cycle, they are held primarily for the purpose of trading, they are expected to be realized within twelve months after the reporting date or are cash or a cash equivalent, unless the assets may not be exchanged or used to settle a liability for at least twelve months after the reporting date. · Liabilities are classified as current when they are expected to be settled in the Group’s normal operating cycle, they are held primarily for the purpose of trading, they are due to be settled within twelve months after the reporting date or the Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. · Financial liabilities are classified as current when they are due to be settled within twelve months after the reporting date, even if the original term was for a period longer than twelve months, and an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting date and before the Consolidated Financial Statements are authorized for issue. |
Environmental issues | (v) Environmental issues The Group takes measures to prevent, reduce or repair the damage caused to the environment by its activities. Property, plant and equipment acquired by the Group for long-term use to minimize the environmental impact of its activity and protect and improve the environment, including the reduction and elimination of future pollution from the Group’s operations, are recognized as assets applying the measurement, presentation and disclosure criteria described in note 4(g). |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation | |
Schedule of amendments to IFRS | Effective date in 2015 Mandatory application for annual periods beginning on or after: Standards IASB effective date EU effective date IAS 19 Defined Benefit Plans: employee contributions (amendments to IAS 19) 1 July 2014 1 February 2015 (*) Various Annual improvements to IFRSs 2010-2012 cycle 1 July 2014 1 February 2015 (*) Various Annual improvements to IFRSs 2011-2013 cycle 1 July 2014 1 January 2015 (*) (*) early adopted Effective date in 2016 Mandatory application for annual periods beginning on or after: Standards IASB effective date EU effective date IAS 16 IAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation (issued on 12 May 2014) 1 January 2016 1 January 2016 IFRS 11 Accounting for Acquisitions of Interests in Joint Operations (issued on 6 May 2014) 1 January 2016 1 January 2016 IAS 27 Equity Method in Separate Financial Statements (issued on 12 August 2014) 1 January 2016 1 January 2016 Various Annual Improvements to IFRSs 2012-2014 cycle (issued on 25 September 2014) 1 January 2016 1 January 2016 IAS 1 Disclosure Initiative (issued on 18 December 2014) 1 January 2016 1 January 2016 Effective date in 2017 Mandatory application for annual periods beginning on or after: Standards IASB effective date EU effective date IAS 12 Recognition of Deferred Tax Assets for Unrealized Losses (issued on 19 January 2016) 1 January 2017 1 January 2017 IAS 7 Disclosure Initiative (issued on 29 January 2016) 1 January 2017 1 January 2017 Various Annual improvements to IFRSs 2014 - 2016 cycle (issued on 8 December 2016) - IFRS 12 1 January 2017 Pending Standards issued but not effective in 2017 Mandatory application for annual periods beginning on or after: Standards IASB effective date EU effective date IFRS 15 Revenue from contracts with Customers (issued on 28 May 2014) 1 January 2018 1 January 2018 IFRS 15 Clarification to IFRS15 Revenue from Contracts with Customers (issued on 12 April 2016) 1 January 2018 1 January 2018 IFRS 9 Financial instruments (issued on 24 July 2014) 1 January 2018 1 January 2018 IFRS 2 Classification and Measurement of Share-based Payment Transactions (issued on 20 June 2016) 1 January 2018 pending IFRS 4 IFRS 9 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (issued on 12 September 2016) 1 January 2018 1 January 2018 IFRIC 22 IFRIC 22 Interpretation: Foreign currency translations and Advance Consideration 1 January 2018 pending IAS 40 Amendments to IAS 40: Transfers of Investment Property 1 January 2018 pending Various Annual improvements to IFRSs 2014 - 2016 cycle (issued on 8 December 2016) 1 January 2018 pending IFRS 16 Leases (Issued on 13 January 2016) 1 January 2019 1 January 2019 IFRIC 23 Uncertainty over Income Tax Treatments (issued on 7 June 2017) 1 January 2019 pending IFRS 9 Prepayment Features with Negative Compensation (issued on 12 October 2017) 1 January 2019 pending IAS 28 Long-term interests in Associates and Joint Ventures (issued on 12 October 2017) 1 January 2019 pending Various Annual Improvements to IFRS Standards 2015-2017 Cycle (issued on 12 December 2017) 1 January 2019 pending IFRS 17 Insurance Contracts (issued on 18 May 2017) 1 January 2021 pending IAS 19 Amendment to IAS19: Plan Amendment, Curtailment or Settlemet (issued on 77 February 2018) 1 January 2019 pending |
Summary of impact in reserves due to IFRS 9 | Thousand of Euros Impact Senior Unsecured Noted IAS 39 IFRS 9 01/01/2018 Total Debt Deferred Expenses ) Negative Impact in reserves Thousand of Euros Impact Senior Secured Debt IAS 39 IFRS 9 01/01/2018 Total Debt ) Deferred Expenses Positive impact in reserves ) Thousand of Euros Impact Total Impact IAS 39 IFRS 9 01/01/2018 Total Debt ) Deferred Expenses ) Positive impact in reserves ) |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Hologic acquisition | |
Business Combinations | |
Disclosure of detailed information about business combination | Cost of the business combination Thousands of Euros Thousands of US Payment in cash Result of the cancellation of the existing contract Total business combination cost Fair value of net assets acquired Goodwill (excess of the cost of the business combination over the fair value of net assets acquired) |
Schedule of fair value assets, liabilities and contingent liabilities recognised on acquisition date | Fair Value Thousands of Euros Thousands of US R&D in progress Other Intangible assets Property, plant and equipment Deferred Tax Assets (note 27) Inventories Total Assets Current Provisions (note 19 (b)) Total liabilities and contingent liabilities Total net assets acquired |
Kedplamsa acquisition | |
Business Combinations | |
Disclosure of detailed information about business combination | Thousands of Euros Thousands of US Dollars Cost of the business combination Payment in cash Total business combination cost Fair value of net assets acquired Goodwill (excess of the cost of the business combination over the fair value of net assets acquired) |
Significant Accounting Polici47
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
Schedule of property, plant and equipment depreciation rates. | Depreciation method Rates Buildings Straight line 1% - 3% Other property, technical equipment and machinery Straight line 4%-10% Other property, plant and equipment Straight line 7% - 33% |
Schedule of intangible assets amortization rates | Amortisation method Rates Development expenses Straight line 10% Concessions, patents, licences, trademarks and similar Straight line 7% - 20% Computer software Straight line 33% Currently marketed products Straight line 3% - 10% |
Financial Risk Management Pol48
Financial Risk Management Policy (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Risk Management Policy | |
Return on equity | Thousand of Euros 2016 2017 Profit attributable to the parent Equity attributable to the parent ROE % % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting | |
Schedule of details of net sales by groups of products | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Bioscience Haemoderivatives Diagnostic Transfusional medicine Other diagnostic Hospital Fluid therapy and nutrition Hospital supplies Bio supplies Others Total |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill | |
Schedule of details of and movement in goodwill | Thousands of Euros Balance at Translation Balance at Segment 31/12/2015 differences 31/12/2016 Net value Grifols UK.Ltd. (UK) Bioscience ) Grifols Italia.S.p.A. (Italy) Bioscience — Biomat USA, Inc.(USA) Bioscience Grifols Australia Pty Ltd. (Australia) / Medion Diagnostics AG (Switzerland) Diagnostic Grifols Therapeutics, Inc. (USA) Bioscience Araclon Biotech, S.L. (Spain) Diagnostic — Progenika Biopharma, S.A. (Spain) Diagnostic — Grifols Diagnostic (Novartis) (USA, Switzerland and Hong Kong) Diagnostic Thousands of Euros Balance at Business Translation Balance at Segment 31/12/2016 Combination differences 31/12/2017 Net value Grifols UK.Ltd. (UK) Bioscience — ) Grifols Italia.S.p.A. (Italy) Bioscience — — Biomat USA, Inc.(USA) Bioscience ) Grifols Australia Pty Ltd. (Australia) / Medion Diagnostics AG (Switzerland) Diagnostic — ) Grifols Therapeutics, Inc. (USA) Bioscience — ) Araclon Biotech, S.L. (Spain) Diagnostic — — Progenika Biopharma, S.A. (Spain) Diagnostic — — Grifols Diagnostic (Novartis & Hologic) (USA, Spain and Hong Kong) Diagnostic ) Kiro Grifols S.L. (Spain) Hospital — — ) (See note 3) |
Schedule of key assumptions used in calculating impairment of CGUs | The key assumptions used in calculating impairment of the CGUs for 2016 were as follows: Perpetual Growth rate Pre-tax discount rate Bioscience % % Diagnostic % % The key assumptions used in calculating impairment of the CGUs for 2017 have been as follows: Perpetual Growth rate Pre-tax discount rate Bioscience % % Diagnostic % % Hospital % % |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Intangible Assets | |
Schedule of cost and accumulated amortization of currently marketed products | Thousands of Euros Balance at Translation Balance at 31/12/2015 Additions differences 31/12/2016 Cost of currently marketed products - Gamunex — Cost of currently marketed products - Progenika — — Accumulated amortisation of currently marketed products - Gamunex ) ) ) ) Accumulated amortisation of currently marketed products - Progenika ) ) — ) Carrying amount of currently marketed products ) Thousands of Euros Balance at Translation Balance at 31/12/2016 Additions differences 31/12/2017 Cost of currently marketed products - Gamunex — ) Cost of currently marketed products - Progenika — — Accumulated amortisation of currently marketed products - Gamunex ) ) ) Accumulated amortisation of currently marketed products - Progenika ) ) — ) Carrying amount of currently marketed products ) ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment | |
Schedule of assets under finance lease | The Group contracted the following types of property, plant and equipment under finance leases at 31 December 2016: Thousands of Euros Cost Accumulated Carrying amount Land and buildings ) Plant and machinery ) ) The Group has contracted the following types of property, plant and equipment under finance leases at 31 December 2017: Thousands of Euros Cost Accumulated Carrying amount Land and buildings ) Plant and machinery ) ) |
Equity Accounted Investees (Tab
Equity Accounted Investees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Accounted Investees | |
Schedule of details of equity accounted investees | Thousands of Thousands of % ownership 31/12/2017 % ownership 31/12/2016 Aradigm Corporation % — % Kiro Grifols, S.L (see note 3(b)) % — % Alkahest, Inc. % % Albajuna Therapeutics, S.L % % Interstate Blood Bank, Inc. % % Bio Blood Components Inc. % % Plasma Biological Services, LLC % % Singulex, Inc. % % GigaGen, Inc % — — Access Biologicals LLC % — — Aigües de Vilajuïga S.A. % — — — |
Schedule of movement in investments in equity-accounted investees | Thousands of Euros 2017 2016 2015 Balance at 1 January Acquisitions Transfers ) ) — Share of profit / (losses) ) ) Share of other comprehensive income / translation differences ) Losses for Impairment ) — — Collected dividends — — ) Balance at 31 December |
GigaGen, Inc | |
Equity Accounted Investees | |
Schedule of movement in investments in equity-accounted investees | Thousand of Euros 31/12/2017 Balance at 1 January — Acquisitions Share of profit / (losses) ) Share of other comprehensive income / translation differences ) Impairment Losses ) Balance at 31 December |
Schedule of summarized financial information of investments in equity-accounted investees | Thousand of Euros Thousand of USD 31/12/2017 31/12/2017 Non-current assets Current assets Current liabilities ) ) Total net assets (100%) Group’s share of net assets (43.96%) Profit from continuing operations (100%) ) ) Group’s share of total comprehensive income (43.96%) ) ) |
Reconciliation of summarized financial information with carrying amount of equity-accounted investees | Thousand of Euros 31/12/2017 Group’s share of net assets Goodwill of equity method investment Equity method accounted investment |
Access Biologic Acquisition | |
Equity Accounted Investees | |
Schedule of movement in investments in equity-accounted investees | Thousand of Euros 31/12/2017 Balance at 1 January — Acquisitions Share of profit / (losses) Share of other comprehensive income / translation differences ) Balance at 31 December |
Schedule of summarized financial information of investments in equity-accounted investees | Thousand of Euros Thousand of USD 31/12/2017 31/12/2017 Non-current assets Current assets Non-current liabilities ) ) Current liabilities ) ) Total net assets (100%) Group’s share of net assets (49%) Profit from continuing operations (100%) Group’s share of total comprehensive income (49%) |
Reconciliation of summarized financial information with carrying amount of equity-accounted investees | Thousand of Euros 31/12/2017 Group’s share of net assets Goodwill of equity method investment Equity method accounted investment |
Aradigm | |
Equity Accounted Investees | |
Schedule of movement in investments in equity-accounted investees | Thousand of Euros 31/12/2017 31/12/2016 Balance at 1 January Share of profit / (losses) ) ) Share of other comprehensive income / translation differences ) Impairment losses ) — Balance at 31 December — |
Singulex, Inc. | |
Equity Accounted Investees | |
Schedule of movement in investments in equity-accounted investees | Thousand of Euros 31/12/2017 31/12/2016 Balance at 1 January — Acquisitions — Share of profit / (losses) ) ) Share of other comprehensive income / translation differences ) Balance at 31 December |
Interstate Blood Bank, Inc., Bio-Blood Components, Inc. and Plasma Biological Services, LLC | |
Equity Accounted Investees | |
Schedule of movement in investments in equity-accounted investees | Thousands of Euros Thousands of Euros 31/12/2017 31/12/2016 IBBI Bio-Blood PBS IBBI Bio-Blood PBS Balance at 1 January — — — Acquisitions — — — Share of profit / (losses) ) ) Share of other comprehensive income / translation differences ) ) ) Balance at 31 December |
Financial Assets (Tables)
Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Assets | |
Schedule of non-current financial assets | Thousands of Euros 31/12/2017 31/12/2016 Convertible Bond (a) — Non-current derivatives (b) (see note 30) Non-current investment in quoted shares (see note 30) Total Non-current financial assets measured at fair value Convertible Bond (a) — Non-current guarantee deposits Other non-current financial assets Non-current loans to EEAA (c) (see note 31) — Total Non-current financial assets measured at amortized cost |
Schedule of other current financial assets | Thousands of Euros 31/12/2017 31/12/2016 Deposits and guarantees Current loans to third parties Current loans to associates (see note 31) Total other current financial assets |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Schedule of inventories | Thousands of Euros 31/12/2017 31/12/2016 Goods for resale Raw materials and supplies Work in progress and semi-finished goods Finished goods |
Schedule of movement in inventory provision | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Balance at 1 January Net charge for the year Cancellations for the year ) ) ) Translation differences ) Balance at 31 December |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and Other Receivables | |
Schedule of trade and other receivables | Thousands of Euros 31/12/2017 31/12/2016 Trade receivables Receivables from associates (note 31) Bad debt provision (note 30) ) ) Trade receivables Other receivables (note 30) Personnel Advance payments (note 30) Taxation authorities, VAT recoverable Other public entities Other receivables Current income tax assets |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents | |
Schedule of cash and cash equivalents | Thousands of Euros 31/12/2017 31/12/2016 Current deposits Cash in hand and at banks Total cash and cash equivalents |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity | |
Distribution of profit | Thousands of Euros 31/12/2017 31/12/2016 Legal Reserve — — Voluntary reserve Dividends Profit of the Parent 31/12/2016 % of par value Euros per share Thousands of Euros Ordinary shares % Non-voting shares % Non-voting shares (preferred dividend) % Total dividends paid 31/12/2016 % of par value Euros per share Thousands of Euros Ordinary shares (interim dividend) % Non-voting shares (interim dividend) % Total interim dividends paid 31/12/2017 % of par value Euros per share Thousands of Euros Ordinary shares % Non-voting shares % Non-voting shares (preferred dividend) % Total dividends paid 31/12/2017 % of par value Euros per share Thousands of Euros Ordinary shares (interim dividend) % Non-voting shares (interim dividend) % Total interim dividends paid |
Share capital | |
Equity | |
Movement in outstanding shares | Class A shares Class B shares Balance at 1 January 2016 (Acquisition) / disposal of treasury stock (note 15 (d)) — ) Balance at 31 December 2016 Class A shares Class B shares Balance at 1 January 2017 (Acquisition) / disposal of treasury stock (note 15 (d)) — Balance at 31 December 2017 |
Treasury stock | |
Equity | |
Movement in outstanding shares | No. of Class B shares Thousands of Euros Balance at 1 January 2016 Acquisition of Class B shares Non Cash Disposal Class B shares ) ) Balance at 31 December 2016 No. of Class B shares Thousands of Euros Balance at 1 January 2017 Disposal Class B shares ) ) Balance at 31 December 2017 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share | |
Earnings Per Share | Details of the calculation of basic earnings per share are as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Profit for the year attributable to shareholders of the Parent (thousands of Euros) Weighted average number of ordinary shares outstanding Basic earnings per share (Euros per share) The weighted average of the ordinary shares outstanding (basic) has been calculated taking into consideration the share split carried out on 4 January 2016 as follows: Number of shares 31/12/2017 31/12/2016 31/12/2015 Issued shares outstanding at 1 January 683,854,491 Effect of shares issued — — — Effect of treasury stock ) ) Average weighted number of ordinary shares outstanding (basic) at 31 December The RSU Plan granted by the Group and payable in shares, assumes the existence of dilutive potential shares. Diluted earnings per share have been calculated as follows: Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Profit for the year attributable to shareholders of the Parent (thousands of Euros) Weighted average number of ordinary shares outstanding (diluted) Diluted earnings per share (Euros per share) The weighted average number of ordinary shares outstanding diluted has been calculated as follows: Number of shares 31/12/2017 31/12/2016 31/12/2015 Issued shares outstanding at 1 January Effect of RSU shares Effect of shares issued — — — Effect of treasury stock ) ) Average weighted number of ordinary shares outstanding (diluted) at 31 December |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Non-Controlling Interests | |
Details of non-controlling interests and movement | Details of non-controlling interests and movement at 31 December 2016 are as follows: Thousands of Euros Balance at Additions Disposals Capital increases Translation Balance at Grifols (Thailand) Pte Ltd ) — Grifols Malaysia Sdn Bhd — — ) Araclon Biotech, S.A. ) — — Medion Grifols Diagnostic AG ) — — — — GRI-CEI S/A Productos para transfusao — ) — — — Progenika Biopharma, S.A. — — ) Brainco Biopharma, S.L. ) — — — — Abyntek Biopharma, S.L. ) — — — ) VCN Bioscience, S.L ) ) — — ) ) (see note 2(b)) Details of non-controlling interests and movement at 31 December 2017 are as follows: Thousands of Euros Balance at Additions Disposals Business Translation Balance at Grifols (Thailand) Pte Ltd ) — ) Grifols Malaysia Sdn Bhd — — ) Araclon Biotech, S.A. ) — — — ) Progenika Biopharma, S.A. ) ) — Abyntek Biopharma, S.L. ) — — — VCN Bioscience, S.L ) — — — Kiro Grifols , S.L. — ) — — ) ) ) |
Grants (Tables)
Grants (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Grants | |
Summary of details of grants | Thousands of Euros 31/12/2017 31/12/2016 Capital grants Interest rate grants (preference loans) (See note 20 ( e)) |
Provision (Tables)
Provision (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provisions | |
Schedule of details of provisions | Thousands of Euros 31/12/2017 31/12/2016 Non-current provisions (a) Provisions for pensions and similar obligations Other provisions Non-current provisions Thousands of Euros 31/12/2017 31/12/2016 Current provisions (b) Trade provisions Current provisions |
Schedule of movement in provisions | Non-current provisions Thousand s of Euros Balance at Net Charge Cancellations Reclassifications Translation Balance at Non-current provisions ) ) ) ) ) ) Thousands of Euros Balance at Net Charge Cancellations Reclassifications Translation Balance at Non-current provisions ) ) ) ) Thousands of Euros Balance at Business Net Charge Cancellations Reclassifications Translation Balance at Non-current provisions ) ) ) ) Current provisions Thousands of Euros Balance at Net Charge Cancellations Reclasifications Translation Balance at Trade provisions ) ) ) ) Thousands of Euros Balance at Net Charge Cancellations Translation Balance at Trade provisions ) ) ) ) Thousands of Euros Balance at Business Net Charge Cancellations Reclasifications Translation Balance at Trade provisions ) ) ) ) ) ) ) ) (See note 3(a)) |
Financial Liabilities (Tables)
Financial Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Liabilities | |
Schedule of financial liabilities | Thousands of Euros Financial liabilities 31/12/2017 31/12/2016 Non-current obligations (a) Senior secured debt (b) Other loans (b) Finance lease liabilities (c) Other non-current financial liabilities (e) Total non-current financial liabilities Current obligations (a) Senior secured debt (b) Other loans (b) Finance lease liabilities (c) Other current financial liabilities (e) Total current financial liabilities |
Schedule of details of movement in the Senior Unsecured Notes | Thousands of Euros Opening outstanding Translation Closing outstanding Senior Unsecured Notes (nominal amount) Total Thousands of Euros Opening outstanding Refinancing Repayments Translation Closing outstanding Senior Unsecured Notes (nominal amount) ) ) Total ) ) |
Schedule of current obligation captions including issue of bearer promissory notes to Group employees | 31/12/2016 Promissory Nominal notes Interest amount of subscribed Buy back pending accrual Maturity promissory Interest (Thousands of (Thousands (Thousands of Issue date date notes (Euros) rate Euros) of Euros) Euros) Issue of bearer promissory notes 05/05/16 04/05/17 % ) ) 31/12/2017 Promissory Nominal notes Interest amount of subscribed Buy back pending accrual Maturity promissory Interest (Thousands of (Thousands (Thousands of Issue date date notes (Euros) rate Euros) of Euros) Euros) Issue of bearer promissory notes 05/05/17 04/05/18 % ) ) |
Schedule of details of loans and borrowings | Thousands of Euros 31/12/2017 31/12/2016 Credit Currency Interest rate Date awarded Maturity date Amount extended Carrying amount Amount extended Carrying amount Senior debt - Tranche A US Dollars Libor + 1.75% 31/01/2017 31/01/2023 — — Senior debt - Tranche A Euros Euribor + 1.75% 31/01/2017 31/01/2023 — — Senior debt - Tranche B US Dollars Libor + 2.25% 31/01/2017 31/01/2025 — — Senior debt - Tranche B Euros Euribor + 3% 27/02/2014 28/02/2021 — — Senior debt - Tranche A US Dollars Libor + 2.5% 27/02/2014 29/02/2020 — — Senior debt - Tranche B US Dollars Libor + 3% 27/02/2014 28/02/2021 — — Total senior debt EIB Loan Euros 2.70% 20/11/2015 20/11/2025 EIB Loan Euros 2.02% 22/12/2017 22/12/2027 Total EIB Loan Revolving Credit US Dollars Libor + 1.75% 31/01/2017 31/01/2023 — — — Revolving Credit US Dollars Libor + 2.5% 27/02/2014 27/02/2019 — — — Total Revolving Credit — — Other non-current loans Euros Euribor- Euribor+4% 19/03/2013 30/09/2024 Loan transaction costs — ) — ) Non-current loans and borrowings Thousands of Euros 31/12/2017 31/12/2016 Credit Currency Interest rate Date awarded Maturity date Amount extended Carrying amount Amount extended Carrying amount Senior debt - Tranche A US Dollars Libor + 1.75% 31/01/2017 31/01/2023 (* ) — — — Senior debt - Tranche A Euros Euribor + 1.75% 31/01/2017 31/01/2023 (* ) — — — Senior debt - Tranche B US Dollars Libor + 2.25% 31/01/2017 31/01/2025 (* ) — — Senior debt - Tranche B Euros Euribor + 3% 27/02/2014 28/02/2021 — — (* ) Senior debt - Tranche A US Dollars Libor + 2.5% 27/02/2014 29/02/2020 — — (* ) Senior debt - Tranche B US Dollars Libor + 3% 27/02/2014 28/02/2021 — — (* ) Total senior debt — — BEI Loan Euros 2.70% 20/11/2015 20/11/2025 (* ) — — Total BEI Loan — — — Other current loans 0.1%-3.74% Loan transaction costs — ) — ) Current loans and borrowings (*) See amount granted under non-current debt |
Schedule of details of minimum payments and the present value of finance lease liabilities, by maturity date | Thousands of Euros 31/12/2017 31/12/2016 Minimum Interest Present Value Minimum Interest Present Value Maturity at: Less than one year Two years Three years Four years Five years More than five years Total |
Schedule of details of maturity of other financial liabilities | Thousands of Euros 31/12/2017 31/12/2016 Maturity at: Up to one year Two years Three years Four years Five years Over five years |
Senior Debt Tranche A Maturing in 2023 | |
Financial Liabilities | |
Schedule of senior secured debt by maturity | Details of Tranche A by maturity at 31 December 2017 are as follows: US Tranche A Tranche A in Euros Maturity Currency Principal in thousands Principal in thousands Currency Principal in 2019 US Dollars Euros 2020 US Dollars Euros 2021 US Dollars Euros 2022 US Dollars Euros 2023 US Dollars Euros Total US Dollars Euros |
Senior Debt Tranche B, Maturing in 2025 | |
Financial Liabilities | |
Schedule of senior secured debt by maturity | Details of Tranche B by maturity at 31 December 2017 are as follows: US Tranche B Maturity Currency Principal in thousands of US Principal in thousands of 2018 US Dollars 2019 US Dollars 2020 US Dollars 2021 US Dollars 2022 US Dollars 2023 US Dollars 2024 US Dollars 2025 US Dollars Total US Dollars |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and Other Payables | |
Schedule of trade and other payables | Thousands of Euros 31/12/2017 31/12/2016 Suppliers VAT payable Taxation authorities, withholdings payable Social security payable Other public entities Other payables Current income tax liabilities |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Current Liabilities | |
Schedule of other current liabilities | Thousands of Euros 31/12/2017 31/12/2016 Salaries payable Other payables Deferred income Advances received Other current liabilities |
Net Revenues (Tables)
Net Revenues (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Revenues | |
Schedule of distribution of net consolidated revenues by segment | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Bioscience Diagnostic Hospital Bio supplies Others Intersegments ) ) ) |
Schedule of geographical distribution of net consolidated revenues | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 USA and Canada Spain European Union Rest of the world Consolidated |
Schedule of discounts and other reductions in gross income | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Gross sales Chargebacks ) ) ) Cash discounts ) ) ) Volume rebates ) ) ) Medicare and Medicaid ) ) ) Other discounts ) ) ) Net sales |
Schedule of movement in discounts and other reductions in gross income | Movement in discounts and other reductions to gross income during 2015 were as follows: Thousands of Euros Chargebacks Cash Volume Medicare / Other Total Balance at 31 December 2014 Current estimate related to sales made in current and prior year (1) (Actual returns or credits in current period related to sales made in current period) ) ) ) ) ) )(2) (Actual returns or credits in current period related to sales made in prior periods) — ) ) ) ) )(3) Translation differences Balance at 31 December 2015 Movement in discounts and other reductions to gross income during 2016 were as follows: Thousands of Euros Chargebacks Cash Volume Medicare / Other Total Balance at 31 December 2015 Current estimate related to sales made in current and prior year (1) (Actual returns or credits in current period related to sales made in current period) ) ) ) ) ) )(2) (Actual returns or credits in current period related to sales made in prior periods) — ) ) ) ) )(3) Translation differences Balance at 31 December 2016 Movement in discounts and other reductions to gross income during 2017 were as follows: Thousands of Euros Chargebacks Cash Volume Medicare / Other Total Balance at 31 December 2016 Current estimate related to sales made in current and prior year (Actual returns or credits in current period related to sales made in current period) ) ) ) ) ) )(2) (Actual returns or credits in current period related to sales made in prior periods) ) ) ) ) )(3) Translation differences ) ) ) ) ) ) Balance at 31 December 2017 (1) Net impact in income statement: estimate for the current year plus prior years’ adjustments. Adjustments made during the year corresponding to prior years’ estimates have not been significant. (2) Amounts credited and posted against provisions for current period (3) Amounts credited and posted against provisions for prior period |
Personnel Expenses (Tables)
Personnel Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Personnel Expenses | |
Schedule of personnel expenses by function | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Cost of sales Research and development Selling general & administration expenses |
Schedule of personnel expenses by nature | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Wages and salaries Contributions to pension plans (see note 29) Other social charges Social Security |
Expenses by Nature (Tables)
Expenses by Nature (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Expenses by Nature | |
Schedule of amortization and depreciation expense classified by functions | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Cost of sales Research and development Selling, general & administration expenses |
Schedule of other operating income and expenses by function | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Cost of sales Research and development Selling, general & administration expenses |
Schedule of other operating income and expenses by nature | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Changes in trade provisions ) ) Professional services Commissions Supplies and auxiliary materials Operating leases (note 28) Freight Repair and maintenance expenses Advertising Insurance Royalties Travel expenses External services R&D Expenses Other Other operating income&expenses |
Finance Result (Tables)
Finance Result (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Finance Result | |
Schedule of finance result | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Finance income Finance cost from Senior Unsecured Notes ) ) ) Finance cost from senior debt ) ) ) Finance cost from sale of receivables (note 13) ) ) ) Capitalized interest Other finance costs ) ) ) Finance costs ) ) ) Change in fair value of financial derivatives (note 30) ) ) ) Impairment and gains / (losses) on disposal of financial instruments (note 11) ) — — Exchange differences ) ) Finance result ) ) ) |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Taxation | |
Schedule of income tax expense and income tax related to profit | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Profit before income tax from continuing operations Tax at 25% (28% for 2015) Permanent differences ) Effect of different tax rates ) Tax credits (deductions) ) ) ) Impact related to the US tax legistation modific ) — — Prior year income tax expense ) Other income tax expenses/(income) ) ) Total income tax expense Deferred tax ) ) Current tax Total income tax expense |
Schedule of deferred tax assets and liabilities | Thousands of Euros Tax effect 31/12/2017 31/12/2016 31/12/2015 Assets Provisions Inventories Tax credits (deductions) Tax loss carry forwards Other Subtotal, assets Goodwill ) ) ) Fixed assets, amortisation and depreciation ) ) ) Intangible assets ) ) ) Subtotal, net liabilities ) ) ) Deferred assets, net Liabilities Goodwill ) ) ) Intangible assets ) ) ) Fixed assets ) ) ) Debt cancellation costs ) ) ) Inventories ) ) Cash flow hedges — — ) Subtotal, liabilities ) ) ) Tax loss carry forwards Provisions Other Subtotal, net assets Net deferred Liabilities ) ) ) |
Schedule of movement in deferred tax assets and liabilities | Thousands of Euros Deferred tax assets and liabilities 31/12/2017 31/12/2016 31/12/2015 Balance at 1 January ) ) ) Movements during the year ) Movements in equity during the year — — ) Business combination (note 3) — — Translation differences ) ) Balance at 31 December ) ) ) |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Operating Leases | |
Schedule of future minimum payments on non-cancellable operating leases | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Maturity at: Up to 1 year Between 1 and 5 years More than 5 years Total future minimum payments |
Other Commitments with Third 72
Other Commitments with Third Parties and Other Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Schedule of Group's purchase commitments | Details of the Group’s commitments at 31 December 2017 are as follows: Thousands of Euros 2018 2019 2020 2021 2022 2023 2024 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments | |
Schedule of financial instruments by nature, category and fair value | Thousand of Euros 31/12/2016 Carrying amount Fair Value Loans and Financial Available for Debts and Total Level 1 Level 2 Level 3 Total Non-current financial assets — — — Financial derivatives — — — — — Financial assets measured at fair value — Non-current financial assets — — — Other current financial assets — — — Trade and other receivables — — — Cash and cash equivalents — — — Financial assets not measured at fair value — — — Senior Unsecured Notes — — — ) ) ) — — ) Promissory Notes — — — ) ) Senior secured debt — — — ) ) — ) — ) Other bank loans — — — ) ) Finance lease payables — — — ) ) Other financial liabilities — — — ) ) Trade and other payables — — — ) ) Other current liabilities — — — ) ) Financial liabilities not measured at fair value — — — ) ) ) ) Thousand of Euros 31/12/2017 Carrying amount Fair Value Loans and Financial Available for Debts and Total Level 1 Level 2 Level 3 Total Non-current financial assets — — — — — Financial derivatives — — — — — Financial assets measured at fair value — — Non-current financial assets — — — Other current financial assets — — — Trade and other receivables — — — Cash and cash equivalents — — — Financial assets not measured at fair value — — — Senior Unsecured Notes — — — ) ) ) — — ) Promissory Notes — — — ) ) Senior secured debt — — — ) ) — ) — ) Other bank loans — — — ) ) Finance lease payables — — — ) ) Other financial liabilities — — — ) ) Trade and other payables — — — ) ) Other current liabilities — — — ) ) Financial liabilities not measured at fair value — — — ) ) ) ) |
Schedule of financial derivatives | Notional Notional Thousands of Euros amount at amount at Value at Value at Financial derivatives Currency 31/12/2017 31/12/2016 31/12/17 31/12/16 Maturity Call Option US Dollar N/A N/A 30/04/2019 Embedded derivative US Dollar N/A N/A — 31/05/2021 Total Total Assets (notes 10 and 11) |
Schedule of maximum level of exposure to credit risk | Thousands of Euros Carrying amount Note 31/12/2017 31/12/2016 Non-current financial assets Other current financial assets Trade receivables Other receivables Cash and cash equivalents |
Schedule of balances receivable by country | Thousands of Euros Carrying amount 31/12/2017 31/12/2016 Spain EU countries United States of America Other European countries Other regions Thousands of Euros Balances with public entities Balance with third parties Balance (1) Balance Provision Balance Balance Provision Net debt Greece — — — — ) Italy — ) Spain — ) Portugal ) ) ) ) Thousands of Euros Balances with public entities Balance with third parties Balance (1) Balance Provision Balance Balance Provision Net debt Greece — — — — — Italy — ) Spain — ) Portugal ) ) ) ) |
Schedule of maturity of trade receivables, net of impairment provisions | Thousands of Euros 31/12/2017 31/12/2016 Not matured Less than 1 month 1 to 4 months 4 months to 1 year More than one year |
Schedule of movement in the bad debt provision | Thousands of Euros 31/12/2017 31/12/2016 31/12/2015 Opening balance Net charges for the year Net cancellations for the year ) ) ) Translation differences ) Closing balance |
Schedule of contractual maturity dates of financial liabilities | Thousands of Euros Carrying amount Note Carrying Contractual 6 months 6 - 12 1-2 years 2- 5 years More than Financial liabilities Bank loans Other financial liabilities Bonds and other marketable securities — Finance lease payables — Payable to suppliers — — — Other current liabilities — — — Total Thousands of Euros Carrying amount Note Carrying Contractual 6 months 6 - 12 1-2 years 2- 5 years More than Financial liabilities Bank loans Other financial liabilities Bonds and other marketable securities Finance lease payables Payable to suppliers — — — Other current liabilities — — — Total |
Schedule of Group's exposure to currency risk | Thousands of Euros 31/12/2016 Euros (*) Dollars (**) Trade receivables Receivables from Group companies Loans to Group companies Cash and cash equivalents Trade payables ) ) Payables to Group companies ) ) Loans from Group companies ) ) Bank loans ) — Balance sheet exposure ) (*) Balances in Euros in subsidiaries with US Dollars functional currency (**) Balances in US Dollars in subsidiaries with Euros functional currency Thousands of Euros 31/12/2017 Euros (*) Dollars (**) Trade receivables Receivables from Group companies Loans to Group companies Cash and cash equivalents Trade payables ) ) Payables to Group companies ) ) Loans from Group companies ) ) Bank loans ) — Balance sheet exposure (*) Balances in Euros in subsidiaries with US Dollars functional currency (**) Balances in US Dollars in subsidiaries with Euros functional currency Closing exchange rate Euros 31/12/2017 31/12/2016 US Dollars |
Schedule of profile of interest on interest-bearing financial instruments | Thousands of Euros 31/12/2017 31/12/2016 Fixed-interest financial instruments Financial liabilities ) ) ) ) Variable-interest financial instruments ) ) Financial liabilities ) ) ) ) |
Balances and Transactions wit74
Balances and Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balances and Transactions with Related Parties | |
Schedule of details of balances with related parties | Thousands of Euros 31/12/2017 31/12/2016 Receivables from associates (note 13) Trade payables associates ) ) Loans to associates (note 11) Debts with associates — — Debts with key management personnel ) ) Payables to members of the board of directors ) — Payables to other related parties ) ) ) |
Schedule of group transactions with related parties | Group transactions with related parties during 2015 were as follows: Thousands of Euros Associates Key management Other related parties Board of directors of Net sales — — — Other service expenses ) — ) ) Operating lease expense — — ) — Remuneration — ) — ) R&D agreements ) — — — Purchase of Fixed Assets — — ) — Sale of Fixed Assets — — — Finance Income — — — ) ) ) ) Group transactions with related parties during 2016 were as follows: Thousands of Euros Associates Key management Other related parties Board of directors of Net sales — — — Purchases ) — — — Other service expenses ) — ) ) Operating lease expense — — ) — Remuneration — ) — ) R&D agreements ) — — — Finance Income — — — ) ) ) ) Group transactions with related parties during 2017 are as follows: Thousands of Euros Associates Key management Other related parties Board of directors of Net sales — — — Purchases ) — — — Other service expenses ) — ) ) Operating lease expense — — ) — Remuneration — ) — ) R&D agreements ) — — — Finance Income — — — ) ) ) ) |
Appendix I (Tables)
Appendix I (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Appendix I | |
Schedule of information on group companies associates and others | Acquisition / 31/12/2017 31/12/2016 31/12/2015 Registered Incorporation % shares % shares % shares Name Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Fully Consolidated Companies Diagnostic Grifols, S.A. Polígono Levante 1987 Industrial Development and manufacture of diagnostic equipment, instruments and reagents. — % — % % % Instituto Grifols, S.A. Polígono Levante 1987 Industrial Plasma fractioning and the manufacture of haemoderivative pharmaceutical products. % % % % % % Grifols Worldwide Operations Spain, S.A (formerly Logister, S.A.) Polígono Levante 1987 Services Manufacture, sale and purchase, commercialisation and distribution of all types of computer products and materials. — % — % — % Laboratorios Grifols, S.A. Polígono Levante 1989 Industrial Production of glass- and plastic-packaged parenteral solutions, parenteral and enteral nutrition products and blood extraction equipment and bags. % % % % % % Biomat, S.A. Polígono Levante 1991 Industrial Analysis and certification of the quality of plasma used by Instituto Grifols, S.A. It also provides transfusion centres with plasma virus inactivation services (I.P.T.H). % % % % % % Grifols Engineering, S.A. Polígono Levante 2000 Industrial Design and development of the Group’s manufacturing installations and part of the equipment and machinery used at these premises. The company also renders engineering services to external companies. % % % % % % Biomat USA, Inc. 2410 Lillyvale Avenue 2002 Industrial Procuring human plasma. — % — % — % Grifols Biologicals LLC. 5555 Valley Boulevard 2003 Industrial Plasma fractioning and the production of haemoderivatives. — % — % — % Grifols Australia Pty Ltd. Unit 5/80 Fairbank 2009 Industrial Distribution of pharmaceutical products and the development and manufacture of reagents for diagnostics. % — % — % — Medion Grifols Diagnostic AG Bonnstrasse,9 2009 Industrial Development and manufacturing activities in the area of biotechnology and diagnostics. — % — % % — Grifols Therapeutics LLC. 4101 Research Commons (Principal Address), 2011 Industrial Plasma fractioning and the production of haemoderivatives. — % — % — % Talecris Plasma Resources, Inc. 4101 Research Commons (Principal Address), 2011 Industrial Procuring human plasma. — % — % — % GRI-CEI, S/A Produtos para transfusao Rua Umuarama, 263 2012 Industrial Production of bags for the extraction, separation, conservation and transfusion of blood components. — — — — % — Grifols Worldwide Operations Limited Grange Castle Business Park, Grange Castle , Clondalkin, Dublin 22, Ireland 2012 Industrial Packaging, labelling, storage, distribution, manufacture and development of pharmaceutical products and rendering of financial services to Group companies. % — % — % — Progenika Biopharma, S.A. Parque Tecnológico de Vizcaya, Edificio 504 2013 Industrial Development, production and commercialisation of biotechnological solutions. — % — % % — This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Registered Incorporation % shares % shares % shares Name Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Fully Consolidated Companies Progenika Latina, S.A. de CV Periferico Sur Nº 4118 Int 8 Col. Jardines del Pedregal 2013 Industrial Development, production and commercialisation of biotechnological solutions. — — — % — % Progenika Inc. (Merged with Grifols Diagnostic Solutions Inc. in 2017) Corporation Service Company, 2711 2013 Industrial Development, production and commercialisation of genetic tools, diagnostic equipment and therapeutic systems and products for personalised medicine and the highest quality healthcare in general. — — — % — % Brainco Biopharma, S.L. Parque Tecnológico de Vizcaya, Edificio 504 2013 Industrial Development of products for the treatment and diagnosis of psychiatric illnesses — — — — — % Abyntek Biopharma, S.L. Parque Tecnológico de Vizcaya, Edificio 504 2013 Industrial Research, development and transfer of biotechnological products and processes, as well as the commercialiation of products and services related to the biosciences. — — — % — % Asociación I+D Progenika Parque Tecnológico de Vizcaya, Edificio 504 2013 Industrial Coordination, representation, management and promotion of the common interests of associated companies, in addition to contributing to the development, growth and internationalisation of its associates and of the biosciences sector in the Basque Country. — % — % — % Grifols Diagnostics Solutions Inc 4560 Horton Street 2013 Industrial Manufacture and sale of blood testing products % — % — % — Grifols Worldwide Operations USA Inc. 13111 Temple Avenue, City of Industry, California 91746-1510 Estados Unidos 2014 Industrial The manufacture, warehousing, and logistical support for biological products. — % — % — % Grifols Asia Pacific Pte, Ltd 501 Orchard Road nº20-01 2003 Commercial Distribution and sale of medical and pharmaceutical products. % — % — % — Grifols Movaco, S.A. Polígono Levante 1987 Commercial Distribution and sale of reagents, chemical products and other pharmaceutical specialities, and of medical and surgical materials, equipment and instruments for use by laboratories and health centres. % % % % % % Grifols Portugal Productos Farmacéuticos e Hospitalares, Lda. Rua de Sao Sebastiao,2 1988 Commercial Import, export and commercialisation of pharmaceutical and hospital equipment and products, particularly Grifols products. % % % % % % Grifols Chile, S.A. Avda. Americo Vespucio, 2242 1990 Commercial Development of pharmaceutical businesses, which can involve the import, production, commercialisation and export of related products. % — % — % — Grifols USA, LLC. 2410 Lillyvale Avenue 1990 Commercial Distribution and marketing of company products. — % — % — % Grifols Argentina, S.A. Bartolomé Mitre 3690/3790, 1991 Commercial Clinical and biological research. Preparation of reagents and therapeutic and diet products. Manufacture and commercialisation of other pharmaceutical specialities. % % % % % % Grifols s.r.o. Calle Zitna,2 1992 Commercial Purchase, sale and distribution of chemical-pharmaceutical products, including human plasma. % — % — % — Grifols (Thailand) Ltd 191 Silom Complex Building, 2003 Commercial Import, export and distribution of pharmaceutical products. — % — % — % Grifols Malaysia Sdn Bhd Level 18, The Gardens North Tower, Mid Valley City, 2003 Commercial Distribution and sale of pharmaceutical products. — % — % — % This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Registered Incorporation % shares % shares % shares Name Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Fully Consolidated Companies Grifols International, S.A. Polígono Levante 1997 Commercial Coordination of the marketing, sales and logistics for all the Group’s subsidiaries operating in other countries. % % % % % % Grifols Italia S.p.A Via Carducci, 62d 1997 Commercial Purchase, sale and distribution of chemical-pharmaceutical products. % — % — % — Grifols UK Ltd. Gregory Rowcliffe & Milners, 1 Bedford Row, London WC1R 4BZ 1997 Commercial Distribution and sale of therapeutic and other pharmaceutical products, especially haemoderivatives. % — % — % — Grifols Brasil, Lda. Rua Umuarama, 263 1998 Commercial Import and export, preparation, distribution and sale of pharmaceutical and chemical products for laboratory and hospital use, and medical-surgical equipment and instruments. % — % — % — Grifols France, S.A.R.L. Arteparc, Rue de la Belle du Canet, Bât. D, Route de la Côte d’Azur, 13590 Meyreuil 1999 Commercial Commercialisation of chemical and healthcare products. % % % % % % Grifols Polska Sp.z.o.o. Grzybowska 87 street00-844 Warsaw, Poland 2003 Commercial Distribution and sale of pharmaceutical, cosmetic and other products. % — % — % — Logística Grifols, S.A. de C.V. Calle Eugenio Cuzin, nº 909-913 2008 Commercial Manufacture and commercialisation of pharmaceutical products for human and veterinary use. % % % % % % Grifols México, S.A. de C.V. Calle Eugenio Cuzin, nº 909-913 1993 Commercial Production, manufacture, adaptation, conditioning, sale and purchase, commissioning, representation and consignment of all kinds of pharmaceutical products and the acquisition of machinery, equipment, raw materials, tools, movable goods and property for the aforementioned purposes. % % % % % % Medion Diagnostics GmbH Lochamer Schlag, 12D 2009 Commercial Distribution and sale of biotechnological and diagnostic products. — % — % — % Grifols Nordic, AB Sveavägen 166 2010 Commercial Research and development, production and marketing of pharmaceutical products, medical devices and any other asset deriving from the aforementioned activities. % — % — % — Grifols Colombia, Ltda Carrera 7 No. 71 52 Torre B piso 9 2010 Commercial Sale, commercialisation and distribution of medicines, pharmaceutical (including but not limited to haemoderivatives) and hospital products, medical devices, biomedical equipment, laboratory instruments and reagents for diagnosis and/or healthcare software. % % % % % % Grifols Deutschland GmbH Lyoner Strasse 15, D- 2011 Commercial Procurement of the official permits and necessary approval for the production, commercialisation and distribution of products deriving from blood plasma, as well as the import, export, distribution and sale of reagents and chemical and pharmaceutical products, especially for laboratories and health centres and surgical and medical equipment and instruments. % — % — % — Grifols Canada, Ltd. 5060 Spectrum Way, Suite 405 (Principal Address) 2011 Commercial Distribution and sale of biotechnological products. — % — % — % Grifols Pharmaceutical Technology (Shanghai) Co., Ltd. (formerly Grifols Pharmaceutical Consulting Unit 901-902, Tower 2, No. 1539, West Nanjing Rd., 2013 Commercial Pharmaceutical consultancy services (except for diagnosis), technical and logistical consultancy services, business management and marketing consultancy services. % — % — % — Grifols Switzerland AG Steinengraben, 5 2013 Commercial Research, development, import and export and commercialisation of pharmaceutical products, devices and diagnostic instruments. % — % — % — Grifols (H.K.), Limited Units 1505-7 Bershire House, 25 Westlands Road Hong Kong 2014 Commercial Distribution and sale of diagnostic products. — % — % — % This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Registered Incorporation % shares % shares % shares Name Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Fully Consolidated Companies Grifols Japan K.K. Hilton Plaza West Office Tower, 19th floor. 2-2, Umeda 2-chome, Kita-ku Osaka-shi 2014 Commercial Research, development, import and export and commercialisation of pharmaceutical products, devices and diagnostic instruments. % — % — % — Grifols India Healthcare Private Ltd Regus Business Centre Pvt.Ltd.,Level15,Dev Corpora, Plot No.463,Nr. Khajana 2014 Commercial Distribution and sale of pharmaceutical products. % % % % % % Grifols Diagnostics Equipment Taiwan Limited 8F., No.367, Fuxing N. RD., Songshang Dist., Taipei City 10543, Taiwan 2016 Commercial Distribution and sale of diagnostic products. % — % — — — Grifols Viajes, S.A. Can Guasch, 2 1995 Services Travel agency exclusively serving Group companies. % % % % % % Squadron Reinsurance Designated Activity Company The Metropolitan Building, 3rd Fl. 2003 Services Reinsurance of Group companies’ insurance policies. — % — % — % Grifols Shared Services North America, Inc. (formerly Grifols Inc.) 2410 Lillivale Avenue 2011 Services Support services for the collection, manufacture, sale and distribution of plasma derivatives and related products. % — % — % — Gripdan Invest, S.L Avenida Diagonal 477 Barcelona, Spain 2015 Services Manufacturing buildings for rent % — % — % — Gri-Cel, S.A. Avenida de la Generalitat 152 2009 Research Research and development in the field of regenerative medicine, awarding of research grants, subscription to collaboration agreements with entities and participation in projects in the area of regenerative medicine. % % % % % % Araclon Biotech, S.L. Paseo de Sagasta, 17 2º izqda. 2012 Research Creation and commercialisation of a blood diagnosis kit for the detection of Alzheimer’s and development of effective immunotherapy (vaccine) against this disease. — % — % — % VCN Bioscience, S.L. Avenida de la Generalitat 152 2012 Research Research and development of therapeutic approaches for tumours for which there is currently no effective treatment. — % — % — % Grifols Innovation and New Technologies Limited Grange Castle Business Park, Grange Castle , Clondalkin, Dublin 22, 2016 Research Research and experimental development on biotechnology — % — % — — PBS Acquisition Corp. 2711 Centerville Road Suite 400, Wilmington, 2016 Services Engage in any lawful act or activity for which corporations may be organized under the DGCL (Delaware Code) — % — % — — Kiro Grifols S.L Polígono Bainuetxe, 5, 2º planta, Aretxabaleta, Guipúzcoa Spain 2014 Research Development of machines and equipment to automate and control key points of hospital processes, and hospital pharmacy processes. % — — — — — Chiquito Acquisition Corp. 2711 Centerville Road Suite 400, Wilmington, Delaware, County of New Castle, United States 2017 Corporate Engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of the State of Delaware, as amended from time to time (the “DGCL”). — % — — — — This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Incorporation % shares % shares % shares Name Registered Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Equity Method consolidated companies and others Nanotherapix, S.L. Avenida de la Generalitat 152 2010 Research Development, validation and production of the technology required to implement the use of genetic and cellular therapy for the treatment of human and animal pathologies. — — — — — % Aradigm Corporation 3929 Point Eden Way 2013 Research Development and commercialisation of drugs delivered by inhalation for the prevention and treatment of severe respiratory diseases. — % — % % — TiGenix N.V. Romeinse straat 12 bus 2, 3001 Leuven, Belgium 2013 Research Research and development of therapies based on stem cells taken from adipose tissue. — % — % — % Mecwins, S.L. Avenida Fernandos Casas Novoa, 37 2013 Research Research and production of nanotechnological, biotechnological and chemical solutions. — % — % — % Kiro Grifols S.L Polígono Bainuetxe, 5, 2º planta, Aretxabaleta, Guipúzcoa Spain 2014 Research Development of machines and equipment to automate and control key points of hospital processes, and hospital pharmacy processes. — — % — % — Alkahest, Inc. 3500 South DuPont Hwy, Dover, County of Kent United States 2015 Research Development novel plasma-based products for the treatment of cognitive decline in aging and disorders of the central nervous system (CNS). — % — % — % Albajuna Therapeutics, S.L Hospital Germans Trias i Pujol, carretera de Canyet, s/n, Badalona 2016 Research Development and manufacture of therapeutic antibodies against HIV. — % — % — — Interstate Blood Bank, Inc. 5700 Pleasantville Road 2016 Industrial Procuring human plasma. — % — % — — Bio Blood Components Inc. 5700 Pleasantville Road 2016 Industrial Procuring human plasma. — % — % — — Plasma Biological Services, LLC 5700 Pleasantville Road 2016 Industrial Procuring human plasma. — % — % — — Singulex, Inc. 4041 Forest Park Avenue St. Louis, Missouri 2016 Research Development of the Single Molecule Counting (SMC™) technology for clinical diagnostic and scientific discovery. — % — % — — This appendix forms an integral part of note 2 to the consolidated financial statements. Acquisition / 31/12/2017 31/12/2016 31/12/2015 Incorporation % shares % shares % shares Name Registered Offices date Activity Statutory Activity Direct Indirect Direct Indirect Direct Indirect Equity Method consolidated companies and others Aigües Minerals de Vilajuiga, S.A. Carrer Sant Sebastià, 2, 17493 Vilajuïga, Girona 2017 Industrial Collection and use of mineral-medicinal waters and achievement of all necessary administrative concessions in order to facilitate their industrial extraction and find the best way to take advantage of them. % — — — — — Access Biologicals, LLC. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — Access Biologicals IC-DISC, Inc. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — Access Cell Culture, LLC. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — Access Manufacturing, LLC. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — Access Plasma, LLC. 995 Park Center Dr, Vista, CA 92081, USA 2017 Industrial Manufacture of biological products, including specific sera and plasma-derived reagents, which are used by biotechnology and biopharmaceutical companies for in-vitro diagnostics, cell culture, and research and development in the diagnostic field. — % — — — — GigaGen Inc. 407 Cabot Road 2017 Industrial Engage in any lawful act or activity for which corporations may be organized under General Corporation Law. — % — — — — This appendix forms an integral part of note 2 to the consolidated financial statements. |
Appendix II (Tables)
Appendix II (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Appendix II | |
Schedule of operating segments | (Expressed in thousands of Euros) Bioscience Hospital Diagnostic Bio Supplies Others Intersegments Consolidated 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Revenues from external customers ) ) ) Total operating income ) ) ) Profit/(Loss) for the segment ) ) ) ) ) ) ) Unallocated expenses ) ) ) Operating profit Finance result ) ) ) Share of profit/(loss) of equity accounted investee ) ) — ) — ) — — — — ) ) — — — ) ) Income tax expense ) ) ) Profit for the year after tax Segment assets ) ) ) Equity accounted investments — — — — — — — — — Unallocated assets — — — — — — — — — — — — — — — — — — Total assets Segment liabilities — — — — — — Unallocated liabilities — — — — — — — — — — — — — — — — — — Total liabilities Other information: Amortisation and depreciation allocated — — — — — — Amortisation and depreciation unallocated — — — — — — — — — — — — — — — Expenses that do not requirecash payments allocated ) ) ) — — — — ) — — — — ) Expenses that do not require cash payments unallocated — — — — — — — — — — — — — — — — — — ) Additions for the year of property, plant & equipment and intangible assets allocated — — — — — Additions for the year of property, plant & equipment and intangible assets unallocated — — — — — — — — — — — — — — — — — — * As a result of the creation of Bio Supplies segment and intersegments, the Group has reviewed the allocation of balances and transactions by segments. The comparative figures for years 2016 and 2015 have been restated accordingly. This appendix forms an integral part of note 6 to the consolidated financial statements |
Schedule of reporting by geographical area | (Expressed in thousands of Euros) Spain Rest of European Union USA + Canada Rest of World Consolidated 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net Revenue Assets by geographical area Other information: Additions for the year of property, plant & equipment and intangible assets This appendix forms an integral part of note 6 to the consolidated financial statements |
Appendix III (Tables)
Appendix III (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Appendix III | |
Schedule of changes in other intangible assets | (Expressed in thousands of Euros) Balances at Business Translation Balances at 31/12/2016 Additions combinations * Transfers Disposals differences 31/12/2017 Development costs — ) ) Concessions, patents, licenses brands & similar — — — ) Computer software ) ) Currently marketed products — — — — ) Other intangible assets — — — ) Total cost of intangible assets ) ) Accum. amort. of development costs ) ) — — — ) ) Accum. amort of concessions, patents, licenses, brands & similar ) ) — — — ) Accum. amort. of computer software ) ) — — ) Accum. amort. of currently marketed products ) ) — — — ) Accum. amort. of other intangible assets ) ) — — — ) Total accum. amort intangible assets ) ) — — ) Impairment of other intangible assets — ) — — — ) Carrying amount of intangible assets ) ) ) (See note 3) This appendix forms an integral part of note 8 to the consolidated financial statements. (Expressed in thousands of Euros) Balances at Translation Balances at 31/12/2015 Additions Transfers Disposals differences 31/12/2016 Development costs — ) Concessions, patents, licenses brands & similar — — — Computer software ) Currently marketed products — — — Other intangible assets — ) Total cost of intangible assets ) Accum. amort. of development costs ) ) — — ) ) Accum. amort of concessions, patents, licenses, brands & similar ) ) — — ) ) Accum. amort. of computer software ) ) ) ) ) Accum. amort. of currently marketed products ) ) — — ) ) Accum. amort. of other intangible assets ) ) — ) ) Total accum. amort intangible assets ) ) ) ) ) Impairment of other intangible assets — — ) — — Carrying amount of intangible assets ) ) This appendix forms an integral part of note 8 to the consolidated financial statements. |
Appendix IV (Tables)
Appendix IV (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Appendix IV | |
Schedule of movement in property, plant and equipment | (Expressed in thousands of Euros) Balances at Additions Business Transfers Disposals Translation Balances at Cost: Land and buildings ) ) Plant and machinery ) ) Fixed Assets under construction ) — ) ) ) ) Accumulated depreciation: Buildings ) ) — — ) Plant and machinery ) ) — ) ) ) — ) Impairment of other property, plant and equipment ) — — — ) Carrying amount ) ) ) (See note 3) This appendix forms an integral part of note 9 to the consolidated financial statements. (Expressed in thousands of Euros) Balances at Additions Transfers Disposals Translation Balances at Cost: Land and buildings ) Plant and machinery ) Fixed Assets under construction ) — ) ) Accumulated depreciation: Buildings ) ) ) ) ) Plant and machinery ) ) ) ) ) ) ) ) Impairment of other property, plant and equipment ) — — ) ) Carrying amount ) ) This appendix forms an integral part of note 9 to the consolidated financial statements. |
Appendix V (Tables)
Appendix V (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Appendix V | |
Schedule of Liquidity for Distribution of Interim Dividend | (Expressed in thousands of Euros) Thousands of Euros Forecast profits distributable for 2017: Projected profits net of taxes until 31/12/2017 Less, charge required to legal reserve — Estimated profits distributable for 2017 Interim dividend distributed Forecast cash for the period 15 December 2017 to 15 December 2018: Cash balances at 15 December 2017 — Projected amounts collected Projected payments, including interim dividend Projected cash balances at 15 December 2018 This appendix forms an integral part of note 15 to the consolidated financial statements. (Expressed in thousands of Euros) Thousands of Euros Forecast profits distributable for 2016: Projected profits net of taxes until 31/12/2016 Less, charge required to legal reserve — Estimated profits distributable for 2016 Interim dividend distributed Forecast cash for the period 07 December 2016 to 07 December 2017: Cash balances at 07 December 2016 Projected amounts collected Projected payments, including interim dividend Projected cash balances at 07 December 2017 This appendix forms an integral part of note 15 to the consolidated financial statements. |
Nature, Principal Activities 80
Nature, Principal Activities and Subsidiaries (Details) - IPO € / shares in Units, € in Millions | May 17, 2006EUR (€)€ / sharesshares |
Nature, principal activities and subsidiaries | |
Number of ordinary shares issued through public offering | shares | 71,000,000 |
Par value (in Euros per share) | € 0.50 |
Share premium | € 3.90 |
Total capital increase (including the share premium) | € | € 312.4 |
Issue price | € 4.40 |
Basis of Presentation (Details)
Basis of Presentation (Details) € in Thousands, $ in Millions | Mar. 03, 2016EUR (€)EquityInstruments | Dec. 12, 2015EUR (€) | Nov. 16, 2015EUR (€) | Feb. 09, 2015EUR (€) | Aug. 31, 2016EUR (€)EquityInstruments | Jul. 31, 2015EUR (€)EquityInstruments | Jun. 30, 2015EUR (€) | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017shares | Dec. 31, 2016 | Oct. 11, 2017EUR (€) | Jul. 24, 2017EUR (€) | Jan. 31, 2017USD ($) | Jul. 31, 2016EquityInstruments |
Grifols Malaysia Sdn Bhd | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Ownership in subsidiary ( as a percent) | 30.00% | |||||||||||||||
Grifols (Thailand) Ltd | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Number of classes of shares | shares | 2 | |||||||||||||||
VCN Bioscience S.L | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Ownership in subsidiary ( as a percent) | 81.34% | |||||||||||||||
VCN Bioscience S.L | Grifols Innovation and New Technologies Limited | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Share capital increase | € 5,000 | |||||||||||||||
VCN Bioscience S.L | Gri-cel S.A | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Share capital increase | € 2,549 | |||||||||||||||
Kiro Grifols S.L (Spain) (formerly Kiro Robotics S.L) | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Ownership in subsidiary ( as a percent) | 90.00% | |||||||||||||||
Additional stake acquired (as a percent) | 40.00% | |||||||||||||||
Consideration transferred | € 12,800 | |||||||||||||||
Araclon Biotech S.L | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Ownership in subsidiary ( as a percent) | 73.22% | |||||||||||||||
Share capital increase | € 6,700 | € 6,000 | € 6,000 | |||||||||||||
Number of share capital increases | EquityInstruments | 2 | 2 | ||||||||||||||
Medion Diagnostics AG | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Ownership in subsidiary ( as a percent) | 100.00% | |||||||||||||||
Additional stake acquired (as a percent) | 20.00% | |||||||||||||||
Medion Diagnostics AG | Treasury stock | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Consideration transferred, in shares | EquityInstruments | 59,951 | |||||||||||||||
Progenika Biopharma, S.A. (Spain) | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Ownership in subsidiary ( as a percent) | 90.23% | 89.25% | ||||||||||||||
Additional stake acquired (as a percent) | 32.93% | |||||||||||||||
Consideration transferred | € 25,000 | |||||||||||||||
Consideration transferred, in cash (as a percent) | 50.00% | |||||||||||||||
Progenika Biopharma, S.A. (Spain) | Class B Shares | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Consideration transferred, in shares | EquityInstruments | 876,777 | |||||||||||||||
Consideration transferred, in shares (as a percent) | 50.00% | |||||||||||||||
Number of days available to selling shareholders to repurchase the shares | 5 days | |||||||||||||||
Progenika Biopharma, S.A. (Spain) | Grifols Diagnostics Solutions, Inc. | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Additional stake acquired (as a percent) | 0.98% | |||||||||||||||
Consideration transferred, in cash | € 644 | |||||||||||||||
Hologic acquisition | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Consideration transferred, in cash | $ | $ 1,865 | |||||||||||||||
Gripdan Invest | ||||||||||||||||
Basis of presentation | ||||||||||||||||
Ownership in subsidiary ( as a percent) | 100.00% | |||||||||||||||
Consideration transferred, in cash | € 46,000 |
Basis of Presentation - IFRS 9
Basis of Presentation - IFRS 9 Financial Instruments (Details) - EUR (€) € in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
IFRS 9 Financial Instruments | |||
Total Debt | € 5,901,815 | € 4,712,071 | |
Impact on Total Debt | € (2,579) | ||
Impact on Deferred Expenses | (22,056) | ||
Increase (decrease) due to changes in accounting policy required by IFRSs | |||
IFRS 9 Financial Instruments | |||
(Positive) Negative Impact on Reserves | (24,636) | ||
Senior Unsecured Notes | |||
IFRS 9 Financial Instruments | |||
Impact on Total Debt | 146,334 | ||
Impact on Deferred Expenses | (41,036) | ||
Senior Unsecured Notes | Increase (decrease) due to changes in accounting policy required by IFRSs | |||
IFRS 9 Financial Instruments | |||
(Positive) Negative Impact on Reserves | 105,298 | ||
Senior Debt | |||
IFRS 9 Financial Instruments | |||
Impact on Total Debt | (148,913) | ||
Impact on Deferred Expenses | 18,979 | ||
Senior Debt | Increase (decrease) due to changes in accounting policy required by IFRSs | |||
IFRS 9 Financial Instruments | |||
(Positive) Negative Impact on Reserves | (129,934) | ||
Debts and payables | |||
IFRS 9 Financial Instruments | |||
Total Debt | 4,228,823 | ||
Debts and payables | Senior Unsecured Notes | |||
IFRS 9 Financial Instruments | |||
Total Debt | 853,667 | ||
Debts and payables | Senior Debt | |||
IFRS 9 Financial Instruments | |||
Total Debt | € 3,375,157 | ||
IFRS 9 | |||
IFRS 9 Financial Instruments | |||
Total Debt | 4,226,244 | ||
IFRS 9 | Senior Unsecured Notes | |||
IFRS 9 Financial Instruments | |||
Total Debt | 1,000,000 | ||
IFRS 9 | Senior Debt | |||
IFRS 9 Financial Instruments | |||
Total Debt | € 3,226,244 |
Business Combinations (Details)
Business Combinations (Details) € in Thousands, $ in Thousands | Dec. 31, 2016USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2015EUR (€) | Jul. 25, 2017EUR (€) | Feb. 28, 2017USD ($) | Feb. 28, 2017EUR (€) | Jan. 31, 2017USD ($) | Jan. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 27, 2016Center | Sep. 30, 2016EUR (€) | Nov. 16, 2015EUR (€) | Feb. 14, 2014EUR (€) |
Disclosure of detailed information about business combination [line items] | |||||||||||||
Goodwill (excess of the cost of the business combination over the fair value of net assets acquired) | € 4,590,498 | € 3,532,359 | € 3,643,995 | ||||||||||
Hologic acquisition | |||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||
Payment in cash | $ 1,865,000 | € 1,734,077 | |||||||||||
Result of the cancellation of the existing contract | 45,057 | 41,894 | |||||||||||
Total business combination cost | 1,910,057 | 1,775,971 | |||||||||||
Fair value of net assets acquired | 332,923 | 309,551 | |||||||||||
Goodwill (excess of the cost of the business combination over the fair value of net assets acquired) | 1,577,134 | 1,466,420 | |||||||||||
Expenses incurred for acquisition | 13,000 | € 5,100 | |||||||||||
Amounts determined at the date of acquisition of assets, liabilities and contingent liabilities acquired | |||||||||||||
Property, plant and equipment | 26,424 | 24,569 | |||||||||||
Deferred tax assets | 18,000 | 16,736 | |||||||||||
Inventories | 32,434 | 30,157 | |||||||||||
Total assets | 377,923 | 351,392 | |||||||||||
Current provisions | 45,000 | 41,841 | |||||||||||
Total liabilities and contingent liabilities | 45,000 | 41,841 | |||||||||||
Total net assets acquired | 332,923 | 309,551 | |||||||||||
Hologic acquisition | R&D in progress | |||||||||||||
Amounts determined at the date of acquisition of assets, liabilities and contingent liabilities acquired | |||||||||||||
Intangible assets | 148,157 | 137,756 | |||||||||||
Hologic acquisition | Other Intangible assets | |||||||||||||
Amounts determined at the date of acquisition of assets, liabilities and contingent liabilities acquired | |||||||||||||
Intangible assets | $ 152,908 | € 142,174 | |||||||||||
Kiro Grifols S.L (Spain) (formerly Kiro Robotics S.L) | |||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||
Goodwill (excess of the cost of the business combination over the fair value of net assets acquired) | € 26,510 | ||||||||||||
Amounts determined at the date of acquisition of assets, liabilities and contingent liabilities acquired | |||||||||||||
Share capital increase | € 12,800 | € 21,000 | |||||||||||
Additional stake acquired (as a percent) | 40.00% | 50.00% | |||||||||||
Ownership in subsidiary ( as a percent) | 90.00% | ||||||||||||
Kiro Grifols S.L (Spain) (formerly Kiro Robotics S.L) | Socios Fundadores Kiro, S.L. | |||||||||||||
Amounts determined at the date of acquisition of assets, liabilities and contingent liabilities acquired | |||||||||||||
Ownership in subsidiary held by noncontrolling interests (as a percent) | 10.00% | ||||||||||||
Kedplamsa acquisition | |||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||
Payment in cash | $ 47,083 | € 44,238 | |||||||||||
Total business combination cost | 47,083 | 44,238 | |||||||||||
Fair value of net assets acquired | 4,403 | 4,137 | |||||||||||
Goodwill (excess of the cost of the business combination over the fair value of net assets acquired) | 42,680 | 40,101 | |||||||||||
Amounts determined at the date of acquisition of assets, liabilities and contingent liabilities acquired | |||||||||||||
Property, plant and equipment | 3,698 | ||||||||||||
Total net assets acquired | $ 4,403 | € 4,137 | |||||||||||
Number of Plasma Donor Centers acquired | Center | 6 | ||||||||||||
Advance paid for acquisition | $ | $ 15,000 | ||||||||||||
VCN Bioscience S.L | |||||||||||||
Amounts determined at the date of acquisition of assets, liabilities and contingent liabilities acquired | |||||||||||||
Ownership in subsidiary ( as a percent) | 68.01% | ||||||||||||
Increase in share capital due to investments in projects | € 2,549 | € 700 |
Significant Accounting Polici84
Significant Accounting Policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | Minimum | |
Property, Plant and Equipment | |
Depreciation rates | 1.00% |
Buildings | Maximum | |
Property, Plant and Equipment | |
Depreciation rates | 3.00% |
Other property, technical equipment and machinery | Minimum | |
Property, Plant and Equipment | |
Depreciation rates | 4.00% |
Other property, technical equipment and machinery | Maximum | |
Property, Plant and Equipment | |
Depreciation rates | 10.00% |
Other property, plant and equipment | Minimum | |
Property, Plant and Equipment | |
Depreciation rates | 7.00% |
Other property, plant and equipment | Maximum | |
Property, Plant and Equipment | |
Depreciation rates | 33.00% |
Significant Accounting Polici85
Significant Accounting Policies - Intangible assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Other Intangible Assets | |
Impairment loss | $ 0 |
Development costs | |
Other Intangible Assets | |
Amortization rates | 10.00% |
Computer software | |
Other Intangible Assets | |
Amortization rates | 33.00% |
Minimum | Concessions, patents, licenses brands & similar | |
Other Intangible Assets | |
Amortization rates | 7.00% |
Minimum | Currently marketed products | |
Other Intangible Assets | |
Amortization rates | 3.00% |
Maximum | Concessions, patents, licenses brands & similar | |
Other Intangible Assets | |
Amortization rates | 20.00% |
Maximum | Currently marketed products | |
Other Intangible Assets | |
Amortization rates | 10.00% |
Significant Accounting Polici86
Significant Accounting Policies - Financial instruments (Details) | Dec. 31, 2017 |
Significant Accounting Policies | |
Interest rate used as a threshold to determine if there has been a substantial modification to the initially recognized financial liability | 10.00% |
Financial Risk Management Pol87
Financial Risk Management Policy - Liquidity Risk and Interest Rate Risk (Details) € in Thousands, $ in Millions | Dec. 05, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2017EUR (€) | Apr. 18, 2017EUR (€) | Feb. 06, 2017USD ($) | Feb. 06, 2017EUR (€) | Dec. 31, 2015EUR (€) | Oct. 28, 2015EUR (€) | Dec. 31, 2014EUR (€) |
Financial Risk Management Policy | ||||||||||
Amount of debt refinanced | $ 6,300 | € 5,800,000 | ||||||||
Cash and cash equivalents | € 895,009 | € 886,521 | € 1,142,500 | € 1,079,146 | ||||||
Senior Debt | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | $ | 6,000 | |||||||||
Maximum borrowings available | 4,119,242 | 5,067,935 | ||||||||
Senior Debt | Hologic acquisition | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | $ | 1,816 | |||||||||
Senior Unsecured Notes | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | 948,677 | 1,000,000 | € 1,000,000 | € 918,527 | ||||||
EIB Loan | ||||||||||
Financial Risk Management Policy | ||||||||||
Maximum borrowings available | 100,000 | 185,000 | ||||||||
Debt term | 10 years | |||||||||
Grace period | 2 years | |||||||||
EIB Loan, Maturing in 2027 | ||||||||||
Financial Risk Management Policy | ||||||||||
Maximum borrowings available | € 85,000 | |||||||||
EIB Loan, Maturing in 2027 | Euros | ||||||||||
Financial Risk Management Policy | ||||||||||
Maximum borrowings available | 85,000 | |||||||||
EIB Loan, Maturing in 2025 | ||||||||||
Financial Risk Management Policy | ||||||||||
Maximum borrowings available | € 100,000 | |||||||||
EIB Loan, Maturing in 2025 | Euros | ||||||||||
Financial Risk Management Policy | ||||||||||
Maximum borrowings available | 100,000 | 100,000 | ||||||||
Revolving Credit | ||||||||||
Financial Risk Management Policy | ||||||||||
Maximum borrowings available | 284,603 | 250,146 | ||||||||
Liquidity risk | ||||||||||
Financial Risk Management Policy | ||||||||||
Amount of debt refinanced | 6,300 | € 5,800,000 | ||||||||
Cash and cash equivalents | € 895,000 | 887,000 | ||||||||
Unused credit facility | 381,000 | |||||||||
Liquidity risk | Senior Debt | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | $ | 6,000 | |||||||||
Liquidity risk | Senior Debt | Hologic acquisition | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | $ | 1,816 | |||||||||
Liquidity risk | Senior Unsecured Notes | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | € 1,000,000 | |||||||||
Liquidity risk | EIB Loan, Maturing in 2027 | ||||||||||
Financial Risk Management Policy | ||||||||||
Maximum borrowings available | € 85,000 | |||||||||
Debt term | 10 years | |||||||||
Grace period | 2 years | |||||||||
Liquidity risk | EIB Loan, Maturing in 2025 | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | 85,000 | |||||||||
Maximum borrowings available | € 100,000 | |||||||||
Liquidity risk | Revolving Credit | ||||||||||
Financial Risk Management Policy | ||||||||||
Unused credit facility | 250,000 | $ 300 | ||||||||
Interest rate risk | Fixed-interest | ||||||||||
Financial Risk Management Policy | ||||||||||
Percentage of fixed rate interest debt of the total debt | 19.00% | 21.00% | ||||||||
Interest rate risk | Senior Debt | Euros | ||||||||||
Financial Risk Management Policy | ||||||||||
Percentage of total senior debt | 12.00% | 12.00% | ||||||||
Interest rate risk | Senior Unsecured Notes | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | $ | $ 1,000 | |||||||||
Interest rate risk | Senior Unsecured Notes | Euros | ||||||||||
Financial Risk Management Policy | ||||||||||
Percentage of fixed rate interest debt of the total debt | 56.00% | |||||||||
Interest rate risk | EIB Loan | ||||||||||
Financial Risk Management Policy | ||||||||||
Principal amount | € 170,000 | |||||||||
Interest rate risk | EIB Loan | Euros | ||||||||||
Financial Risk Management Policy | ||||||||||
Percentage of total debt | 10.00% |
Financial Risk Management Pol88
Financial Risk Management Policy - Capital Management (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Risk Management Policy | |||
Profit attributable to the Parent | € 662,700 | € 545,456 | € 532,145 |
Equity attributable to the Parent | € 3,629,079 | € 3,721,481 | |
Return on equity | 18.00% | 15.00% | |
Preference shares, treasury stock as a percentage of capital, held by parent | 0.60% | 0.70% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017locationarea | |
Segment Reporting | |
Number of areas Group companies are divided into | area | 4 |
Geographical information | |
Number of geographical areas | location | 4 |
Segment Reporting - Net Sales b
Segment Reporting - Net Sales by Groups of Products (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting | |||
Net revenue | € 4,318,073 | € 4,049,830 | € 3,934,563 |
Bio supplies | |||
Segment Reporting | |||
Net revenue | 66,791 | 24,387 | 24,466 |
Others | |||
Segment Reporting | |||
Net revenue | 18,263 | 34,602 | 90,289 |
Haemoderivatives | Bioscience | |||
Segment Reporting | |||
Net revenue | 3,429,785 | 3,228,275 | 3,032,111 |
Transfusional medicine | Diagnostic | |||
Segment Reporting | |||
Net revenue | 679,692 | 640,443 | 667,886 |
Other diagnostic | Diagnostic | |||
Segment Reporting | |||
Net revenue | 23,377 | 23,540 | 23,566 |
Fluid therapy and nutrition | Hospital | |||
Segment Reporting | |||
Net revenue | 47,699 | 46,210 | 45,621 |
Hospital supplies | Hospital | |||
Segment Reporting | |||
Net revenue | € 52,466 | € 52,373 | € 50,624 |
Segment Reporting - Main Custom
Segment Reporting - Main Customer (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Bioscience | Customer | |||
Disclosure of major customers | |||
Percentage of entity's revenue | 11.00% | 10.70% | 10.10% |
Goodwill - Details of and movem
Goodwill - Details of and movement in goodwill (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | ||
Goodwill at beginning of the year | € 3,643,995 | € 3,532,359 |
Business Combination | 1,533,031 | |
Translation differences | (586,528) | 111,636 |
Goodwill at end of the year | 4,590,498 | 3,643,995 |
Grifols UK Ltd. (UK) | ||
Goodwill | ||
Goodwill at beginning of the year | 8,025 | 9,362 |
Translation differences | (280) | (1,337) |
Goodwill at end of the year | 7,745 | 8,025 |
Grifols Italia S.p.A. (Italy) | ||
Goodwill | ||
Goodwill at beginning of the year | 6,118 | 6,118 |
Goodwill at end of the year | 6,118 | 6,118 |
Biomat USA, Inc. | ||
Goodwill | ||
Goodwill at beginning of the year | 193,039 | 186,907 |
Business Combination | 40,101 | |
Translation differences | (27,886) | 6,132 |
Goodwill at end of the year | 205,254 | 193,039 |
Grifols Australia Pty Ltd. (Australia) / Medion Diagnostics AG (Switzerland) | ||
Goodwill | ||
Goodwill at beginning of the year | 10,134 | 9,961 |
Translation differences | (591) | 173 |
Goodwill at end of the year | 9,543 | 10,134 |
Grifols Therapeutics, Inc. (USA) | ||
Goodwill | ||
Goodwill at beginning of the year | 2,108,139 | 2,041,137 |
Translation differences | (255,234) | 67,002 |
Goodwill at end of the year | 1,852,905 | 2,108,139 |
Araclon Biotech, S.L. (Spain) | ||
Goodwill | ||
Goodwill at beginning of the year | 6,000 | 6,000 |
Goodwill at end of the year | 6,000 | 6,000 |
Progenika Biopharma, S.A. (Spain) | ||
Goodwill | ||
Goodwill at beginning of the year | 40,516 | 40,516 |
Goodwill at end of the year | 40,516 | 40,516 |
Grifols Diagnostic (Novartis) (USA, Switzerland and Hong Kong) | ||
Goodwill | ||
Goodwill at beginning of the year | 1,272,024 | 1,232,358 |
Business Combination | 1,466,420 | |
Translation differences | (302,537) | 39,666 |
Goodwill at end of the year | 2,435,907 | € 1,272,024 |
Kiro Grifols S.L (Spain) (formerly Kiro Robotics S.L) | ||
Goodwill | ||
Business Combination | 26,510 | |
Goodwill at end of the year | € 26,510 |
Goodwill - Impairment testing (
Goodwill - Impairment testing (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Jul. 25, 2017 | Sep. 30, 2016 | |
Impairment Testing | ||||
Length of cash flow projections used in assumptions and calculations of impairment | 5 years | 5 years | ||
Stock market capitalization | € 15,379 | € 12,020 | ||
Kiro Grifols S.L (Spain) (formerly Kiro Robotics S.L) | ||||
Impairment Testing | ||||
Additional stake acquired (as a percent) | 40.00% | 50.00% | ||
Bioscience | ||||
Impairment Testing | ||||
Perpetual growth rate | 2.00% | 2.00% | ||
Pre-tax discount rate | 9.50% | 8.60% | ||
Diagnostic | ||||
Impairment Testing | ||||
Perpetual growth rate | 2.00% | 2.00% | ||
Pre-tax discount rate | 10.60% | 10.30% | ||
Hospital | ||||
Impairment Testing | ||||
Perpetual growth rate | 1.40% | |||
Pre-tax discount rate | 13.30% |
Other Intangible Assets - Curre
Other Intangible Assets - Currently marketed products acquired from Talecris and Progenika (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Intangible Assets | ||
Intangible assets at beginning of the year | € 1,195,302 | € 1,161,572 |
Additions | 284,729 | |
Translation differences | (162,046) | 35,049 |
Intangible assets at end of the year | 1,269,342 | 1,195,302 |
Gross carrying amount | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | 1,682,673 | 1,577,005 |
Additions | 284,729 | |
Translation differences | (206,643) | 46,844 |
Intangible assets at end of the year | 1,841,207 | 1,682,673 |
Accumulated depreciation and amortisation | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | (487,371) | (415,467) |
Translation differences | 43,243 | (11,795) |
Intangible assets at end of the year | (508,485) | (487,371) |
Currently marketed products | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | 941,216 | 950,889 |
Additions | (38,216) | (38,441) |
Translation differences | (109,692) | 28,768 |
Intangible assets at end of the year | 793,308 | 941,216 |
Currently marketed products | Gross carrying amount | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | 1,162,204 | 1,126,024 |
Translation differences | (137,828) | 36,180 |
Intangible assets at end of the year | 1,024,376 | 1,162,204 |
Currently marketed products | Accumulated depreciation and amortisation | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | (220,988) | (175,135) |
Translation differences | 28,136 | (7,412) |
Intangible assets at end of the year | € (231,068) | € (220,988) |
Talecris | Currently marketed products | ||
Other Intangible Assets | ||
Estimated useful life | 30 years | 30 years |
Residual useful life | 23 years 5 months | 24 years 5 months |
Talecris | Currently marketed products | Gross carrying amount | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | € 1,138,412 | € 1,102,232 |
Translation differences | (137,828) | 36,180 |
Intangible assets at end of the year | 1,000,584 | 1,138,412 |
Talecris | Currently marketed products | Accumulated depreciation and amortisation | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | (211,871) | (168,397) |
Additions | (35,837) | (36,062) |
Translation differences | 28,136 | (7,412) |
Intangible assets at end of the year | € (219,572) | € (211,871) |
Progenika Biopharma, S.A. (Spain) | Currently marketed products | ||
Other Intangible Assets | ||
Estimated useful life | 10 years | 10 years |
Residual useful life | 5 years 2 months | 6 years 2 months |
Progenika Biopharma, S.A. (Spain) | Currently marketed products | Gross carrying amount | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | € 23,792 | € 23,792 |
Intangible assets at end of the year | 23,792 | 23,792 |
Progenika Biopharma, S.A. (Spain) | Currently marketed products | Accumulated depreciation and amortisation | ||
Other Intangible Assets | ||
Intangible assets at beginning of the year | (9,117) | (6,738) |
Additions | (2,379) | (2,379) |
Intangible assets at end of the year | € (11,496) | € (9,117) |
Other Intangible Assets - Other
Other Intangible Assets - Others (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Intangible Assets | |||
Other intangible assets | € 1,269,342 | € 1,195,302 | € 1,161,572 |
Intangible asset purchase commitments | 1,199 | 639 | |
Profit (loss) incurred on disposals of intangible assets | (83) | 7,198 | |
Impairment loss | 63,675 | ||
Plasma center licenses | |||
Other Intangible Assets | |||
Other intangible assets | 26,631 | 30,075 | |
Development costs | |||
Other Intangible Assets | |||
Other intangible assets | 183,281 | 52,272 | |
License rights | |||
Other Intangible Assets | |||
Other intangible assets | 4,235 | 0 | |
Self-constructed | |||
Other Intangible Assets | |||
Other intangible assets | € 49,782 | € 29,034 |
Property, Plant and Equipment -
Property, Plant and Equipment - Activity (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment | ||
Capitalized interests | € 8,839 | € 13,019 |
Losses on disposals of property, plant and equipment | € 1,468 | € 4,021 |
Property, Plant and Equipment97
Property, Plant and Equipment - Assets under finance leases (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed assets | ||
Assets under finance lease | ||
Assets under finance lease | € 9,415 | € 9,344 |
Land and buildings | ||
Assets under finance lease | ||
Assets under finance lease | 1,730 | 792 |
Plant and machinery | ||
Assets under finance lease | ||
Assets under finance lease | 7,685 | 8,552 |
Gross carrying amount | Fixed assets | ||
Assets under finance lease | ||
Assets under finance lease | 16,794 | 15,549 |
Gross carrying amount | Land and buildings | ||
Assets under finance lease | ||
Assets under finance lease | 2,545 | 2,213 |
Gross carrying amount | Plant and machinery | ||
Assets under finance lease | ||
Assets under finance lease | 14,249 | 13,336 |
Accumulated depreciation and amortisation | Fixed assets | ||
Assets under finance lease | ||
Assets under finance lease | (7,379) | (6,205) |
Accumulated depreciation and amortisation | Land and buildings | ||
Assets under finance lease | ||
Assets under finance lease | (815) | (1,421) |
Accumulated depreciation and amortisation | Plant and machinery | ||
Assets under finance lease | ||
Assets under finance lease | € (6,564) | € (4,784) |
Property, Plant and Equipment98
Property, Plant and Equipment - Self Constructed PP&E and Commitments (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment | |||
Property, plant and equipment | € 1,760,053 | € 1,809,852 | € 1,644,402 |
Purchase commitments | 39,675 | 39,773 | |
Self-constructed property, plant and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment | € 52,218 | € 68,529 |
Property, Plant and Equipment99
Property, Plant and Equipment - Impairment (Details) - Specific Group of Assets Hospital Segment - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Impairment | ||
Impairment | € 0 | |
Pre-tax discount rate | 12.20% | 10.30% |
Perpetual growth rate | 2.00% | 2.00% |
Equity Accounted Investees - Ow
Equity Accounted Investees - Ownership and Carrying Amount (Details) - EUR (€) € in Thousands | Jan. 12, 2017 | May 17, 2016 | May 11, 2016 | Dec. 31, 2017 | Jan. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Accounted Investees | |||||||||
Carrying value | € 219,009 | € 219,009 | € 201,345 | € 76,728 | € 54,296 | ||||
Aradigm Corporation | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 35.13% | 35.13% | |||||||
Carrying value | € 9,291 | ||||||||
Kiro Grifols , S.L. | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 90.00% | 50.00% | |||||||
Carrying value | € 13,888 | ||||||||
Alkahest, Inc. | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 47.58% | 47.58% | |||||||
Carrying value | 30,559 | € 30,559 | € 35,955 | ||||||
Albajuna Therapeutics, S.L. | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 30.00% | 30.00% | 30.00% | ||||||
Carrying value | 1,956 | € 1,956 | € 3,177 | ||||||
Interstate Blood Bank, Inc. | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 49.19% | 49.19% | 49.19% | ||||||
Carrying value | 27,936 | € 27,936 | € 31,090 | ||||||
Bio Blood Components Inc. | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 48.97% | 48.97% | 48.97% | ||||||
Carrying value | 32,960 | € 32,960 | € 38,725 | ||||||
Plasma Biological Services, LLC | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 48.90% | 48.90% | 48.90% | ||||||
Carrying value | € 23,010 | € 23,010 | € 25,890 | ||||||
Singulex, Inc. | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 20.00% | 19.33% | 19.33% | 20.00% | |||||
Carrying value | € 29,322 | € 29,322 | € 43,329 | ||||||
GigaGen, Inc | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 43.96% | ||||||||
Carrying value | 29,047 | € 29,047 | |||||||
Access Biologic Acquisition | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 49.00% | 49.00% | |||||||
Carrying value | € 44,219 | € 44,219 | |||||||
Aigues de Vilajuiga S.A. | |||||||||
Equity Accounted Investees | |||||||||
Ownership (as a percent) | 50.00% |
Equity Accounted Investees - Mo
Equity Accounted Investees - Movements in Investments Carrying Amount (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in the investments in equity-accounted investees | |||
Balance | € 201,345 | € 76,728 | € 54,296 |
Acquisitions | 80,685 | 136,072 | 33,039 |
Transfers | (16,000) | (29,059) | |
Share of profit/(losses) | (13,195) | 6,933 | (8,280) |
Share of other comprehensive income / translation differences | (27,134) | 10,671 | 2,673 |
Losses for impairment | (6,692) | ||
Collected dividends | (5,000) | ||
Balance | € 219,009 | € 201,345 | € 76,728 |
Equity Accounted Investees - Gi
Equity Accounted Investees - GigaGen Inc (Details) € in Thousands, $ in Thousands | Jul. 05, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) |
Equity Accounted Investees | |||||||
Non-current assets | € 7,974,948 | € 7,007,258 | |||||
Current assets | 2,945,316 | 3,122,514 | |||||
Current liabilities | (977,987) | (1,071,763) | |||||
Profit from continuing operations (100%) | € 661,314 | € 544,543 | € 531,441 | ||||
Reconciliation of summarized financial information with carrying amount | |||||||
Equity method accounted investment | 201,345 | 76,728 | 54,296 | 219,009 | € 201,345 | ||
Movement in the investments in equity-accounted investees | |||||||
Balance | 201,345 | 76,728 | 54,296 | ||||
Acquisitions | 80,685 | 136,072 | 33,039 | ||||
Share of profit / (losses) | (19,887) | 6,933 | (8,280) | ||||
Share of other comprehensive income / translation differences | (27,134) | 10,671 | 2,673 | ||||
Impairment losses | (6,692) | ||||||
Balance | € 219,009 | € 201,345 | € 76,728 | ||||
GigaGen, Inc | |||||||
Equity Accounted Investees | |||||||
Ownership interest (as a percent) | 43.96% | 43.96% | |||||
Non-current assets | $ 484 | 404 | |||||
Current assets | 26,277 | 21,910 | |||||
Current liabilities | (216) | (180) | |||||
Total net assets (100%) | 26,545 | 22,134 | |||||
Group's share of net assets | 11,669 | 9,730 | |||||
Profit from continuing operations (100%) | (2,183) | € (1,830) | |||||
Group's share of total comprehensive income | (960) | (804) | |||||
Reconciliation of summarized financial information with carrying amount | |||||||
Group's share of net assets | $ 11,669 | 9,730 | |||||
Goodwill of equity method investment | 19,317 | ||||||
Equity method accounted investment | 29,047 | € 29,047 | |||||
Movement in the investments in equity-accounted investees | |||||||
Acquisitions | 31,752 | ||||||
Share of profit / (losses) | (804) | ||||||
Share of other comprehensive income / translation differences | (1,595) | ||||||
Impairment losses | (306) | ||||||
Balance | € 29,047 | ||||||
Grifols Innovation and New Technologies Limited | |||||||
Equity Accounted Investees | |||||||
Ownership in subsidiary ( as a percent) | 100.00% | ||||||
Grifols Innovation and New Technologies Limited | GigaGen, Inc | |||||||
Equity Accounted Investees | |||||||
Ownership interest (as a percent) | 43.96% | ||||||
Collaboration fee | $ | $ 15,000 | ||||||
Movement in the investments in equity-accounted investees | |||||||
Acquisitions | $ | $ 35,000 |
Equity Accounted Investees - Ac
Equity Accounted Investees - Access Biologicals LLC (Details) € in Thousands, $ in Thousands | Jan. 12, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) |
Equity Accounted Investees | |||||||
Non-current assets | € 7,974,948 | € 7,007,258 | |||||
Current assets | 2,945,316 | 3,122,514 | |||||
Non-current liabilities | (6,308,312) | (5,330,031) | |||||
Current liabilities | (977,987) | (1,071,763) | |||||
Profit from continuing operations (100%) | € 661,314 | € 544,543 | € 531,441 | ||||
Reconciliation of summarized financial information with carrying amount | |||||||
Equity method accounted investment | 201,345 | 76,728 | 54,296 | 219,009 | € 201,345 | ||
Movement in the investments in equity-accounted investees | |||||||
Balance | 201,345 | 76,728 | 54,296 | ||||
Acquisitions | 80,685 | 136,072 | 33,039 | ||||
Share of profit / (losses) | (19,887) | 6,933 | (8,280) | ||||
Share of other comprehensive income / translation differences | (27,134) | 10,671 | 2,673 | ||||
Balance | € 219,009 | € 201,345 | € 76,728 | ||||
Access Biologic Acquisition | |||||||
Equity Accounted Investees | |||||||
Ownership interest (as a percent) | 49.00% | 49.00% | 49.00% | ||||
Option to purchase remaining voting rights (as a percent) | 51.00% | ||||||
Option to purchase remaining voting rights, term (in years) | 5 years | ||||||
Non-current assets | $ 1,464 | 1,221 | |||||
Current assets | 17,296 | 14,422 | |||||
Non-current liabilities | (1,540) | (1,284) | |||||
Current liabilities | (3,626) | (3,023) | |||||
Total net assets (100%) | 13,594 | 11,336 | |||||
Group's share of net assets | 6,661 | 5,555 | |||||
Profit from continuing operations (100%) | 4,129 | € 3,734 | |||||
Group's share of total comprehensive income | 2,023 | 1,830 | |||||
Reconciliation of summarized financial information with carrying amount | |||||||
Group's share of net assets | $ 6,661 | 5,555 | |||||
Goodwill of equity method investment | 38,664 | ||||||
Equity method accounted investment | 44,219 | € 44,219 | |||||
Movement in the investments in equity-accounted investees | |||||||
Acquisitions | $ 51,000 | 48,383 | |||||
Share of profit / (losses) | 1,830 | ||||||
Share of other comprehensive income / translation differences | (5,994) | ||||||
Balance | € 44,219 |
Equity Accounted Investees - Ar
Equity Accounted Investees - Aradigm (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in the investments in equity-accounted investees | |||
Balance | € 201,345 | € 76,728 | € 54,296 |
Share of profit / (losses) | (19,887) | 6,933 | (8,280) |
Share of other comprehensive income / translation differences | (27,134) | 10,671 | 2,673 |
Impairment losses | (6,692) | ||
Balance | 219,009 | 201,345 | 76,728 |
Aradigm | |||
Movement in the investments in equity-accounted investees | |||
Balance | 9,291 | 19,799 | |
Share of profit / (losses) | (4,324) | (10,185) | |
Share of other comprehensive income / translation differences | 869 | (323) | |
Impairment losses | € (5,836) | ||
Balance | € 9,291 | € 19,799 |
Equity Accounted Investees - Si
Equity Accounted Investees - Singulex (Details) € in Thousands, $ in Millions | May 17, 2016USD ($) | May 17, 2016EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | May 16, 2016USD ($) |
Movement in the investments in equity-accounted investees | |||||||
Balance | € 201,345 | € 76,728 | € 54,296 | ||||
Acquisitions | 80,685 | 136,072 | 33,039 | ||||
Share of profit / (losses) | (19,887) | 6,933 | (8,280) | ||||
Share of other comprehensive income / translation differences | (27,134) | 10,671 | 2,673 | ||||
Balance | € 219,009 | € 219,009 | € 201,345 | € 76,728 | |||
Singulex, Inc. | |||||||
Equity Accounted Investees | |||||||
Ownership interest (as a percent) | 20.00% | 20.00% | 19.33% | 19.33% | 20.00% | ||
Pre-money valuation | $ | $ 200 | ||||||
Movement in the investments in equity-accounted investees | |||||||
Balance | € 43,329 | ||||||
Acquisitions | $ 50 | € 44,107 | € 44,107 | ||||
Share of profit / (losses) | (9,335) | (3,890) | |||||
Share of other comprehensive income / translation differences | (4,672) | 3,112 | |||||
Balance | € 29,322 | € 29,322 | € 43,329 |
Equity Accounted Investees - In
Equity Accounted Investees - Interstate Blood Bank, Inc., Bio-Blood Components, Inc. and Plasma Biological Services, LLC (Details) € in Thousands, $ in Millions | May 11, 2016USD ($)facilityCenter | May 11, 2016EUR (€)facility | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) |
Movement in the investments in equity-accounted investees | |||||
Balance | € 201,345 | € 76,728 | € 54,296 | ||
Acquisitions | 80,685 | 136,072 | 33,039 | ||
Share of profit / (losses) | (19,887) | 6,933 | (8,280) | ||
Share of other comprehensive income / translation differences | (27,134) | 10,671 | 2,673 | ||
Balance | € 219,009 | € 201,345 | € 76,728 | ||
Interstate Blood Bank, Inc. | |||||
Equity Accounted Investees | |||||
Ownership interest (as a percent) | 49.19% | 49.19% | 49.19% | 49.19% | |
Movement in the investments in equity-accounted investees | |||||
Balance | € 31,090 | ||||
Acquisitions | € 28,229 | ||||
Share of profit / (losses) | 635 | 695 | |||
Share of other comprehensive income / translation differences | (3,789) | 2,166 | |||
Balance | € 27,936 | € 31,090 | |||
Bio Blood Components Inc. | |||||
Equity Accounted Investees | |||||
Ownership interest (as a percent) | 48.97% | 48.97% | 48.97% | 48.97% | |
Movement in the investments in equity-accounted investees | |||||
Balance | € 38,725 | ||||
Acquisitions | € 36,168 | ||||
Share of profit / (losses) | (1,181) | (166) | |||
Share of other comprehensive income / translation differences | (4,584) | 2,723 | |||
Balance | € 32,960 | € 38,725 | |||
Plasma Biological Services, LLC | |||||
Equity Accounted Investees | |||||
Ownership interest (as a percent) | 48.90% | 48.90% | 48.90% | 48.90% | |
Movement in the investments in equity-accounted investees | |||||
Balance | € 25,890 | ||||
Acquisitions | € 23,818 | ||||
Share of profit / (losses) | 270 | 260 | |||
Share of other comprehensive income / translation differences | (3,150) | 1,812 | |||
Balance | € 23,010 | € 25,890 | |||
Interstate Blood Bank, Inc., Bio-Blood Components, Inc. and Plasma Biological Services, LLC | |||||
Equity Accounted Investees | |||||
Number of plasma collection centers | Center | 23 | ||||
Number of blood donation centers | Center | 9 | ||||
Number of laboratories | facility | 1 | 1 | |||
Movement in the investments in equity-accounted investees | |||||
Acquisitions | $ 100 | € 88,215 | |||
Call option | Interstate Blood Bank, Inc., Bio-Blood Components, Inc. and Plasma Biological Services, LLC | |||||
Equity Accounted Investees | |||||
Purchase price for the remaining stakes | $ | 100 | ||||
Price of option to purchase remaining stakes | $ 10 | € 9,007 |
Equity Accounted Investees - Ot
Equity Accounted Investees - Other Significant Investments (Details) € in Thousands | Jul. 25, 2017EUR (€) | Jan. 31, 2016EUR (€)installment | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) |
Equity Accounted Investees | |||||
Acquisitions | € 80,685 | € 136,072 | € 33,039 | ||
Dividends received | € 5,000 | ||||
Albajuna Therapeutics, S.L. | |||||
Equity Accounted Investees | |||||
Ownership interest (as a percent) | 30.00% | 30.00% | 30.00% | ||
Acquisitions | € 3,750 | ||||
Number of payments for increase in initial investment | installment | 2 | ||||
Total amount of increase in initial investment upon achievements of agreed development milestones | € 7,250 | ||||
Kiro Grifols S. L (formerly Kiro Robotics S.L) | |||||
Equity Accounted Investees | |||||
Share capital increase | € 12,800 | ||||
Additional stake acquired (as a percent) | 40.00% | ||||
Ownership in subsidiary ( as a percent) | 90.00% |
Financial Assets - Non current
Financial Assets - Non current financial assets (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets | ||
Convertible Bond | € 15,201 | |
Non-current derivatives | € 8,338 | 13,665 |
Non-current investment in quoted shares | 38,708 | 29,998 |
Total Non-current financial assets measured at fair value | 47,046 | 58,864 |
Convertible Bond | 25,000 | |
Non-current guarantee deposits | 4,820 | 4,603 |
Other non-current financial assets | 1,346 | 1,078 |
Non-current loans to EEAA | 16,677 | |
Total Non-current financial assets measured at amortized cost | € 22,843 | € 30,681 |
Financial Assets - Other curren
Financial Assets - Other current financial assets (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets | ||
Deposits and guarantees | € 702 | € 957 |
Current loans to third parties | 59 | 832 |
Current loans to associates | 9,977 | 793 |
Total other current financial assets | € 10,738 | € 2,582 |
Financial Assets - Convertible
Financial Assets - Convertible bond, Non-current derivatives and loans (Details) € in Thousands, $ in Thousands | Oct. 02, 2017USD ($) | Feb. 02, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Oct. 02, 2017EUR (€) | Apr. 22, 2016USD ($) | Apr. 22, 2016EUR (€) |
Financial Assets | ||||||||
Settlement amount | € 20,500 | |||||||
Loss on settlement | € 5,500 | |||||||
Non-current derivatives | € 8,338 | € 13,665 | ||||||
Aradigm | ||||||||
Financial Assets | ||||||||
Indirect ownership interest (as a percent) | 35.13% | 35.13% | ||||||
Impairment loss of financial assets related to convertible bond | € 14,477 | |||||||
Impairment loss on implicit derivative to the right of convertible bond | 3,672 | |||||||
Aradigm | Convertible Bonds, Maturing in 2021 | ||||||||
Financial Assets | ||||||||
Notional amount | $ 19,950 | € 17,997 | ||||||
interest rate on non-current loans (as a percent) | 9.00% | 9.00% | ||||||
Amount repaid on loan | € 1,601 | € 839 | ||||||
Convertible bonds, conversion ratio | 191.94 | |||||||
Principal amount of convertible bonds that is used in conversion calculations | $ | $ 1,000 | |||||||
Singulex, Inc. | ||||||||
Financial Assets | ||||||||
Notional amount | $ 20,000 | € 16,676 | ||||||
interest rate on non-current loans (as a percent) | 5.00% | 5.00% | ||||||
Indirect ownership interest (as a percent) | 19.33% |
Inventories (Details)
Inventories (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details of inventories | |||
Goods for resale | € 105,013 | € 166,272 | |
Raw materials and supplies | 454,371 | 423,326 | |
Work in progress and semi-finished goods | 592,612 | 584,279 | |
Finished goods | 477,297 | 469,054 | |
Total inventories | 1,629,293 | 1,642,931 | |
Inventory provision | |||
Movement in the inventory provision | |||
Balance at 1 January | 33,069 | 22,614 | € 15,888 |
Net charge for the year | 8,232 | 8,878 | 6,099 |
Cancellations for the year | (357) | (20) | (195) |
Translation differences | (5,180) | 1,597 | 822 |
Balance at 31 December | € 35,764 | € 33,069 | € 22,614 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Trade and Other Receivables | ||||
Trade receivables | € 302,685 | € 431,510 | ||
Receivables from associates | 3,219 | 133 | ||
Bad debt provision | (19,706) | (17,987) | € (13,210) | € (14,092) |
Trade receivables | 286,198 | 413,656 | ||
Other receivables | 7,485 | 13,705 | ||
Personnel | 566 | 280 | ||
Advance payments | 11,181 | 6,775 | ||
Taxation authorities, VAT recoverable | 20,105 | 17,768 | ||
Other public entities | 1,344 | 3,771 | ||
Other receivables | 40,681 | 42,299 | ||
Current income tax assets | 59,531 | 77,713 | ||
Total trade and other receivables | € 386,410 | € 533,668 |
Trade and Other Receivables - O
Trade and Other Receivables - Other Receivables (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trade and Other Receivables | |||
Initial payment usually received under some contracts, expressed as a percentage of the nominal amount of receivables sold less associated sale and purchase costs | 90.00% | 90.00% | 90.00% |
Amount due from financial institutions relating to the deferred collection of the remaining nominal amount of the sold receivables from several public entities | € 1,800 | € 2,560 | |
Amount of receivables sold without recourse to financial institutions | 912,000 | 870,000 | |
Finance costs from sale of receivables | € 3,973 | € 4,885 | € 6,512 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 07, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents | |||||
Current deposits | € 655,463 | € 470,298 | |||
Cash in hand and at banks | 231,058 | 424,711 | € 5,521 | ||
Total cash and cash equivalents | € 886,521 | € 895,009 | € 1,142,500 | € 1,079,146 |
Equity - Share Capital - Genera
Equity - Share Capital - General Information (Details) - EUR (€) | Dec. 31, 2017 | Dec. 31, 2016 |
Equity | ||
Share capital | € 119,604,000 | € 119,604,000 |
Share capital | ||
Equity | ||
Share capital | € 119,603,705 | € 119,603,705 |
Class A, Ordinary shares | ||
Equity | ||
Number of shares issued (in shares) | 426,129,798 | 426,129,798 |
Par value (in Euros per share) | € 0.25 | € 0.25 |
Class B, Preference shares | ||
Equity | ||
Number of shares issued (in shares) | 261,425,110 | 261,425,110 |
Par value (in Euros per share) | € 0.05 | € 0.05 |
Equity - Share Capital - Class
Equity - Share Capital - Class B Shares (Details) | Dec. 31, 2017item€ / shares | Dec. 31, 2016item€ / shares | Jul. 23, 2012 | Jul. 22, 2012 |
Equity | ||||
Preference shares, annual preferred dividend, minimum (in Euros per share) | € / shares | € 0.01 | € 0.01 | ||
Exchange ratio | 1 | 2 | ||
Interests representing more than 10% of total capital | item | 0 | 0 |
Equity - Share Capital - Moveme
Equity - Share Capital - Movement in Outstanding Shares (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class A, Ordinary shares | ||
Reconciliation of number of shares outstanding | ||
Number of shares outstanding at beginning of the year | 426,129,798 | |
Number of shares outstanding at end of the year | 426,129,798 | 426,129,798 |
Class B, Preference shares | ||
Reconciliation of number of shares outstanding | ||
Number of shares outstanding at beginning of the year | 256,694,375 | |
(Acquisition) / disposal of treasury stock | 432,929 | |
Number of shares outstanding at end of the year | 257,127,304 | 256,694,375 |
Scenario, Previously Reported | Class A, Ordinary shares | ||
Reconciliation of number of shares outstanding | ||
Number of shares outstanding at beginning of the year | 426,129,798 | 426,129,798 |
Number of shares outstanding at end of the year | 426,129,798 | |
Scenario, Previously Reported | Class B, Preference shares | ||
Reconciliation of number of shares outstanding | ||
Number of shares outstanding at beginning of the year | 256,694,375 | 257,386,540 |
(Acquisition) / disposal of treasury stock | (692,165) | |
Number of shares outstanding at end of the year | 256,694,375 |
Equity - Reserves - Drawdown of
Equity - Reserves - Drawdown of Accumulated Gains (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Equity | ||
Restricted reserves | € 40,061 | € 50,680 |
Equity - Reserves - Treasury St
Equity - Reserves - Treasury Stock (Details) - EUR (€) € in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity | ||||
Net change in treasury stock | € 6,288 | € (10,317) | € 12,695 | |
Treasury stock | ||||
Equity | ||||
Net change in treasury stock | € 6,288 | € (10,135) | € 10,677 | |
Reserves | ||||
Equity | ||||
Net change in treasury stock | € 2,000 | |||
Class A, Ordinary shares | Treasury stock | ||||
Equity | ||||
(Acquisition) / disposal of treasury stock | 1,967,265 |
Equity - Reserves - Subsidiarie
Equity - Reserves - Subsidiaries (Details) € in Thousands | Dec. 12, 2016EUR (€) | Oct. 31, 2017EUR (€)shares | Sep. 30, 2017 | Aug. 31, 2016EUR (€) | Jul. 31, 2016EUR (€)EquityInstruments | Jul. 31, 2015EUR (€) | Jun. 30, 2015EUR (€) | May 31, 2015 | Dec. 31, 2017EUR (€) | Dec. 31, 2015EUR (€) | Mar. 03, 2016 |
Equity | |||||||||||
Decrease in reserves | € 389 | € 3 | |||||||||
Araclon Biotech S.L | |||||||||||
Equity | |||||||||||
Increased capital | € 6,700 | € 6,000 | € 6,000 | ||||||||
Indirect (as a percent) | 73.22% | 70.83% | 70.83% | 66.15% | |||||||
Araclon Biotech S.L | Reserves | |||||||||||
Equity | |||||||||||
Decrease in reserves | € 1,700 | € 1,770 | |||||||||
Medion Diagnostics AG | |||||||||||
Equity | |||||||||||
Indirect (as a percent) | 100.00% | ||||||||||
Additional stake acquired (as a percent) | 20.00% | ||||||||||
Medion Diagnostics AG | Treasury stock | |||||||||||
Equity | |||||||||||
Consideration transferred, in shares | EquityInstruments | 59,951 | ||||||||||
Medion Diagnostics AG | Reserves | |||||||||||
Equity | |||||||||||
Decrease in reserves | € 600 | ||||||||||
VCN Bioscience, S.L. (Spain) | |||||||||||
Equity | |||||||||||
Increased capital | € 5,000 | ||||||||||
Indirect (as a percent) | 81.34% | ||||||||||
VCN Bioscience, S.L. (Spain) | Reserves | |||||||||||
Equity | |||||||||||
Decrease in reserves | € 1,000 | ||||||||||
Progenika Biopharma, S.A. (Spain) | |||||||||||
Equity | |||||||||||
Acquired Capital (in shares) | shares | 12,020 | ||||||||||
Indirect (as a percent) | 90.23% | 89.25% | |||||||||
Additional stake acquired (as a percent) | 32.93% | ||||||||||
Progenika Biopharma, S.A. (Spain) | Reserves | |||||||||||
Equity | |||||||||||
Decrease in reserves | € 374,000 | ||||||||||
Medion Diagnostics AG | |||||||||||
Equity | |||||||||||
Additional stake acquired (as a percent) | 20.00% | ||||||||||
Medion Diagnostics AG | Treasury stock | |||||||||||
Equity | |||||||||||
Consideration transferred, in shares | EquityInstruments | 59,951 |
Equity - Reserves - Legal Reser
Equity - Reserves - Legal Reserve (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Equity | ||
Percentage of annual profits to transfer to legal reserve (as a percent) | 10.00% | |
Limit to transfers to legal reserve as a percentage of share capital (as a percent) | 20.00% | |
Nominal value of the total share capital after the increase (as a percent) | 10.00% | |
Legal reserve | € 23,921 | € 23,921 |
Spanish companies other than parent | ||
Equity | ||
Legal reserve | 2,416 | 1,485 |
Foreign companies other than Spanish companies and parent | ||
Equity | ||
Legal reserve | € 731 | € 650 |
Equity - Treasury Stock - Class
Equity - Treasury Stock - Class A Treasury Stock (Details) - Class A, Ordinary shares - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Equity | ||
Number of shares outstanding | 426,129,798 | 426,129,798 |
Treasury stock | ||
Equity | ||
Number of shares outstanding | 0 | 0 |
Equity - Treasury Stock - Tabul
Equity - Treasury Stock - Tabular Disclosure - Shares (Details) - Class B, Preference shares - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of number of shares outstanding | ||
Number of shares outstanding at beginning of the year | (256,694,375) | |
Number of shares outstanding at end of the year | (257,127,304) | (256,694,375) |
Treasury stock | ||
Reconciliation of number of shares outstanding | ||
Number of shares outstanding at beginning of the year | 4,730,735 | |
Non Cash Disposal of shares | (432,929) | |
Number of shares outstanding at end of the year | 4,297,806 | 4,730,735 |
Scenario, Previously Reported | ||
Reconciliation of number of shares outstanding | ||
Number of shares outstanding at beginning of the year | (256,694,375) | (257,386,540) |
Number of shares outstanding at end of the year | (256,694,375) | |
Scenario, Previously Reported | Treasury stock | ||
Reconciliation of number of shares outstanding | ||
Number of shares outstanding at beginning of the year | 4,730,735 | 4,038,570 |
Acquisition of shares | 1,628,893 | |
Disposal of shares | (936,728) | |
Number of shares outstanding at end of the year | 4,730,735 |
Equity - Treasury Stock - Ta124
Equity - Treasury Stock - Tabular Disclosure - Value (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equity | ||
Balance at beginning of the year | € (3,727,978) | € (3,301,390) |
Balance at end of the year | (3,633,965) | (3,727,978) |
Treasury stock | ||
Equity | ||
Balance at beginning of the year | 68,710 | 58,575 |
Balance at end of the year | 62,422 | 68,710 |
Treasury stock | Class B, Preference shares | ||
Equity | ||
Balance at beginning of the year | 68,710 | 58,575 |
Acquisition of shares | 23,720 | |
Non Cash Disposal of shares | (6,288) | |
Disposal of shares | (13,585) | |
Balance at end of the year | € 62,422 | € 68,710 |
Equity - Treasury Stock - Non-c
Equity - Treasury Stock - Non-controlling Interests (Details) € in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016EUR (€)EquityInstruments | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Mar. 31, 2017EquityInstruments | Jul. 31, 2016EquityInstruments | |
Equity | ||||||
Group companies, associates and business units | € | € 1,857,210 | € 202,727 | € 58,609 | |||
Treasury stock | Restricted share unit retention plan | ||||||
Equity | ||||||
Consideration transferred, in shares | 432,929 | |||||
Medion Diagnostics AG | ||||||
Equity | ||||||
Additional stake acquired (as a percent) | 20.00% | |||||
Medion Diagnostics AG | Treasury stock | ||||||
Equity | ||||||
Consideration transferred, in shares | 59,951 | |||||
Progenika Biopharma, S.A. (Spain) | ||||||
Equity | ||||||
Additional stake acquired (as a percent) | 16.46% | |||||
Group companies, associates and business units | € | € 11,035 | |||||
Progenika Biopharma, S.A. (Spain) | Treasury stock | ||||||
Equity | ||||||
Consideration transferred, in shares | 876,777 |
Equity - Treasury Stock - Addit
Equity - Treasury Stock - Additional Information (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Equity | ||
Preference shares, treasury stock as a percentage of capital, held by parent (as a percent) | 0.60% | 0.70% |
Equity - Distribution of Profit
Equity - Distribution of Profit - Proposed Distribution of Profit (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Equity | |
Voluntary reserve | € 76,247 |
Dividends | 265,080 |
Profit of the Parent | € 341,327 |
Equity - Distribution of Pro128
Equity - Distribution of Profit - Approved Distribution of Profit (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2016EUR (€) | |
Equity | |
Voluntary reserve | € 103,611 |
Dividends | 218,182 |
Profit of the Parent | € 321,793 |
Equity - Distribution of Pro129
Equity - Distribution of Profit - Dividends Paid (Details) - EUR (€) € / shares in Units, € in Thousands | May 26, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Equity | ||||
Dividends paid | € 95,274 | € 93,243 | ||
Interim dividends paid | 122,986 | 122,908 | ||
Dividends paid | € 218,260 | € 216,151 | € 221,772 | |
Class A, Ordinary shares | ||||
Equity | ||||
Dividends paid, % of par value (as a percent) | 54.00% | 53.00% | ||
Dividends paid, per share (in Euros per share) | € 0.14 | € 0.13 | ||
Dividends paid | € 57,790 | € 56,493 | ||
Interim dividends paid, % of par value (as a percent) | 72.00% | 72.00% | ||
Interim dividends paid, per share (in Euros per share) | € 0.18 | € 0.18 | ||
Interim dividends paid | € 76,703 | € 76,703 | ||
Class B, Preference shares | ||||
Equity | ||||
Interim dividends paid, % of par value (as a percent) | 360.00% | 360.00% | ||
Interim dividends paid, per share (in Euros per share) | € 0.18 | € 0.18 | ||
Interim dividends paid | € 46,283 | € 46,205 | ||
Preference shares, no preferred dividend | ||||
Equity | ||||
Dividends paid, % of par value (as a percent) | 271.00% | 265.00% | ||
Dividends paid, per share (in Euros per share) | € 0.14 | € 0.13 | ||
Dividends paid | € 34,870 | € 34,136 | ||
Preference shares, preferred dividend | ||||
Equity | ||||
Dividends paid, % of par value (as a percent) | 20.00% | 20.00% | ||
Dividends paid, per share (in Euros per share) | € 0.01 | € 0.01 | € 0.01 | |
Dividends paid | € 2,614 | € 2,614 |
Equity - Distribution of Pro130
Equity - Distribution of Profit - Interim Dividend (Details) - EUR (€) € / shares in Units, € in Thousands | Oct. 27, 2017 | Oct. 28, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Equity | |||||
Interim dividend | € 122,986 | € 122,908 | € 122,986 | € 122,908 | € 119,615 |
Class A, Ordinary shares | |||||
Equity | |||||
Dividend approved (in Euros per share) | € 0.18 | € 0.18 | |||
Class B, Preference shares | |||||
Equity | |||||
Dividend approved (in Euros per share) | € 0.18 | € 0.18 |
Equity - Distribution of Pro131
Equity - Distribution of Profit - Additional Information (Details) - € / shares | May 26, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Preference shares, preferred dividend | |||
Equity | |||
Dividends paid, per share (in Euros per share) | € 0.01 | € 0.01 | € 0.01 |
Equity - Restricted Share Unit
Equity - Restricted Share Unit Compensation (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Equity | ||
Cumulative accrual amount | € 13,871 | € 7,946 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic Earnings per Share (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share | |||
Profit for the year attributable to shareholders of the Parent | € 662,700 | € 545,456 | € 532,145 |
Weighted average number of ordinary shares outstanding (in shares) | 684,197,276 | 683,225,815 | 683,549,316 |
Basic earnings per share (in Euros per share) | € 0.97 | € 0.80 | € 0.78 |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Ordinary Shares Outstanding Basic (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average ordinary shares and adjusted weighted average ordinary shares [abstract] | |||
Issued shares outstanding at 1 January (in shares) | 683,854,491 | 683,516,338 | 683,610,378 |
Effect of treasury stock (in shares) | 342,785 | (290,523) | (61,062) |
Average weighted number of ordinary shares outstanding (basic) at 31 December (in shares) | 684,197,276 | 683,225,815 | 683,549,316 |
Earnings Per Share - Calcula135
Earnings Per Share - Calculation of Diluted Earnings per Share (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit (loss), attributable to ordinary equity holders of parent entity [abstract] | |||
Profit for the year attributable to shareholders of the Parent | € 662,700 | € 545,456 | € 532,145 |
Weighted average number of ordinary shares outstanding (diluted) (in shares) | 684,243,891 | 684,170,887 | 683,924,426 |
Diluted earnings per share (in Euros per share) | € 0.97 | € 0.80 | € 0.78 |
Earnings Per Share - Weighte136
Earnings Per Share - Weighted Average Ordinary Shares Outstanding Diluted (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average ordinary shares and adjusted weighted average ordinary shares [abstract] | |||
Issued shares outstanding at 1 January (in shares) | 683,854,491 | 683,988,460 | 683,610,378 |
Effect of RSU shares (in shares) | 46,615 | 472,950 | 375,110 |
Effect of treasury stock (in shares) | 342,785 | (290,523) | (61,062) |
Average weighted number of ordinary shares outstanding (diluted) at 31 December (in shares) | 684,243,891 | 684,170,887 | 683,924,426 |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | € 3,727,978 | € 3,301,390 | € 2,662,888 |
Profit/(loss) for the year | 661,314 | 544,543 | 531,441 |
Disposals | 6,426 | 6,234 | 252 |
Capital increases | (389) | (3) | |
Balance at end of the year | 3,633,965 | 3,727,978 | 3,301,390 |
Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | 6,497 | 5,187 | 4,765 |
Profit/(loss) for the year | (1,386) | (913) | (704) |
Disposals | (49) | (582) | (72) |
Disposals | (346) | ||
Business combinations/ Additions to consolidated Group | 254 | ||
Capital increases | (43) | 2,737 | 1,767 |
Translation differences | (133) | 68 | |
Balance at end of the year | 4,886 | 6,497 | 5,187 |
Grifols (Thailand) Ltd | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | 3,354 | 2,664 | |
Profit/(loss) for the year | 433 | 778 | |
Disposals | (215) | ||
Disposals | (77) | ||
Translation differences | (131) | 127 | |
Balance at end of the year | 3,579 | 3,354 | 2,664 |
Grifols Malaysia Sdn Bhd | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | 1,172 | 1,040 | |
Profit/(loss) for the year | 229 | 144 | |
Translation differences | (29) | (12) | |
Balance at end of the year | 1,372 | 1,172 | 1,040 |
Araclon Biotech S.L | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | 140 | 183 | |
Profit/(loss) for the year | (1,617) | (1,819) | |
Capital increases | 1,776 | ||
Balance at end of the year | (1,477) | 140 | 183 |
Medion Diagnostics AG | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | (406) | ||
Disposals | 406 | ||
Balance at end of the year | (406) | ||
GRI-CEI S/A Productos para transfusao | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | 1,146 | ||
Disposals | (1,146) | ||
Balance at end of the year | 1,146 | ||
Progenika Biopharma, S.A. (Spain) | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | 1,211 | 1,093 | |
Profit/(loss) for the year | (60) | 165 | |
Disposals | (297) | ||
Translation differences | 27 | (47) | |
Balance at end of the year | 881 | 1,211 | 1,093 |
Brainco Biopharma, S.L. (merged with Progenika Biopharma, S.A in 2016) | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | (373) | ||
Disposals | 373 | ||
Balance at end of the year | (373) | ||
Abyntek Biopharma, S.L. | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | (73) | (93) | |
Profit/(loss) for the year | 45 | 20 | |
Disposals | 28 | ||
Balance at end of the year | (73) | (93) | |
VCN Bioscience, S.L. (Spain) | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Balance at beginning of the year | 693 | (67) | |
Profit/(loss) for the year | (272) | (201) | |
Capital increases | 961 | ||
Balance at end of the year | 421 | € 693 | € (67) |
Kiro Grifols , S.L. | Non-controlling interests | |||
Disclosure of subsidiaries [line items] | |||
Profit/(loss) for the year | (144) | ||
Business combinations/ Additions to consolidated Group | 254 | ||
Balance at end of the year | € 110 |
Grants (Details)
Grants (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Grants | |||
Capital grants | € 11,010 | € 11,311 | |
Interest rate grants (preference loans) | 812 | 885 | |
Total Grants | 11,822 | 12,196 | |
Grants transferred to consolidated statement of profit and loss | € 323 | € 1,154 | € 1,227 |
Provisions - Summary (Details)
Provisions - Summary (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Non-current provisions | ||||
Provisions for pensions and similar obligations | € 4,742 | € 4,195 | ||
Other provisions | 1,021 | 923 | ||
Non-current provisions | 5,763 | 5,118 | € 4,980 | € 6,953 |
Current provisions | ||||
Trade provisions | 106,995 | 89,588 | ||
Current Provisions | € 106,995 | € 89,588 | € 123,049 | € 115,985 |
Provisions - Non-current provis
Provisions - Non-current provisions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-current provisions | |||
Beginning balance, Non-current provisions | € 5,118 | € 4,980 | € 6,953 |
Business combinations | 23 | ||
Net charge | 422 | (399) | 376 |
Cancellations | (23) | (281) | (1,598) |
Reclassifications | 290 | 814 | (600) |
Translation differences | (67) | 4 | (151) |
Ending balance, Non-current provisions | € 5,763 | € 5,118 | € 4,980 |
Provisions - Current provisions
Provisions - Current provisions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current provisions | |||
Beginning balance, Trade provisions | € 89,588 | € 123,049 | € 115,985 |
Business combinations | 41,841 | ||
Net charges | (4,812) | (28,481) | (2,562) |
Cancellations | (2,886) | (6,417) | (6,123) |
Reclassifications | (2,600) | 492 | |
Translation differences | (14,136) | 1,437 | 15,257 |
Ending balance, Trade provisions | € 106,995 | € 89,588 | € 123,049 |
Financial Liabilities - Summary
Financial Liabilities - Summary (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Liabilities | ||
Non-current obligations | € 853,667 | € 831,417 |
Senior secured debt, non-current | 4,849,882 | 3,728,695 |
Other loans, non-current | 169,214 | 114,898 |
Finance lease liabilities, non-current | 5,415 | 6,086 |
Other non-current financial liabilities | 23,637 | 30,975 |
Total non-current financial liabilities | 5,901,815 | 4,712,071 |
Current obligations | 95,538 | 95,524 |
Senior secured debt, current | 4,057 | 81,273 |
Other loans, current | 29,527 | 23,288 |
Finance lease liabilities, current | 3,945 | 3,859 |
Other current financial liabilities | 22,003 | 26,121 |
Total current financial liabilities | € 155,070 | € 230,065 |
Financial Liabilities - Other (
Financial Liabilities - Other (Details) € in Thousands, $ in Millions | Dec. 05, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Apr. 18, 2017EUR (€) | Feb. 06, 2017USD ($) | Feb. 06, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Oct. 28, 2015EUR (€) |
Borrowings | |||||||||
Amount of debt refinanced | $ 6,300 | € 5,800,000 | |||||||
Senior Debt | |||||||||
Borrowings | |||||||||
Face amount | $ | 6,000 | ||||||||
Maximum borrowings available | € 5,067,935 | € 4,119,242 | |||||||
Revolving Credit Facility, Maturing in 2023 | |||||||||
Borrowings | |||||||||
Maximum borrowing capacity | $ | $ 300 | 300 | |||||||
Senior Unsecured Notes | |||||||||
Borrowings | |||||||||
Face amount | 1,000,000 | € 1,000,000 | 948,677 | € 918,527 | |||||
EIB Loan | |||||||||
Borrowings | |||||||||
Maximum borrowings available | € 185,000 | € 100,000 | |||||||
Debt term | 10 years | ||||||||
Grace period | 2 years | ||||||||
EIB Loan, Maturing in 2027 | |||||||||
Borrowings | |||||||||
Maximum borrowings available | € 85,000 | ||||||||
EIB Loan, Maturing in 2025 | |||||||||
Borrowings | |||||||||
Maximum borrowings available | € 100,000 | ||||||||
Hologic acquisition | Senior Debt | |||||||||
Borrowings | |||||||||
Face amount | $ | $ 1,816 |
Financial Liabilities - Senior
Financial Liabilities - Senior Unsecured Notes (Details) € in Thousands, $ in Millions | Apr. 18, 2017USD ($) | Apr. 18, 2017EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2011 |
Borrowings | |||||||
Refinance costs | € 263,344 | € 244,829 | € 240,335 | ||||
Senior Unsecured Notes | |||||||
Borrowings | |||||||
Face amount | € 1,000,000 | € 1,000,000 | 1,000,000 | 948,677 | € 918,527 | ||
Value of notes replaced | (108,597) | ||||||
Value of notes redeemed | 26,618 | ||||||
Unamortized financing costs | 146,000 | € 146,000 | € 117,000 | ||||
Senior Unsecured Notes Due 2022 | |||||||
Borrowings | |||||||
Borrowings, interest rate | 5.25% | ||||||
Percentage of notes replaced | 97.1 | 97.1 | |||||
Value of notes replaced | $ | $ 1,000 | ||||||
Percentage of notes redeemed | 2.9 | 2.9 | |||||
Value of notes redeemed | € 26,618 | ||||||
Secured unsecured notes, maturing in 2025 | |||||||
Borrowings | |||||||
Face amount | € 1,000,000 | ||||||
Borrowings, interest rate | 3.20% | ||||||
Refinance costs | € 57,500 |
Financial Liabilities - Movemen
Financial Liabilities - Movement in Senior Unsecured Notes (Details) - EUR (€) € in Thousands | Apr. 18, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Borrowings | ||||
Translation differences | € 11,472 | € (8,916) | € 12,140 | |
Senior Unsecured Notes | ||||
Borrowings | ||||
Nominal amount, beginning balance | 948,677 | 918,527 | ||
Refinancing | (108,597) | |||
Repayments | (26,618) | |||
Translation differences | (30,656) | 30,150 | ||
Nominal amount, ending balance | € 1,000,000 | € 1,000,000 | € 948,677 | € 918,527 |
Financial Liabilities - Promiss
Financial Liabilities - Promissory Notes (Details) - EUR (€) | Dec. 31, 2017 | Dec. 31, 2016 |
Promissory Notes Maturing May 2017 | ||
Borrowings | ||
Nominal amount of promissory notes | € 3,000 | |
Borrowings, interest rate | 4.00% | |
Promissory notes subscribed | € 84,966,000 | |
Buy back | (789,000) | |
Interest pending accrual | € (1,104,000) | |
Promissory Notes Maturing May 2018 | ||
Borrowings | ||
Nominal amount of promissory notes | € 3,000 | |
Borrowings, interest rate | 3.00% | |
Promissory notes subscribed | € 92,109,000 | |
Buy back | (906,000) | |
Interest pending accrual | € (909,000) |
Financial Liabilities - Loans a
Financial Liabilities - Loans and Borrowings (Details) - EUR (€) € in Thousands | Feb. 06, 2017 | Dec. 31, 2017 | Dec. 05, 2017 | Dec. 31, 2016 | Oct. 28, 2015 |
Borrowings | |||||
Amount extended | € 131,700 | € 208,105 | |||
Non-current, Loan transaction costs | (174,278) | (150,987) | |||
Current loans, Loan transaction costs | (20,958) | (3,365) | |||
Current loans and borrowings | 33,584 | 104,561 | |||
Current loans and borrowings, accrued interest | 1,713 | 596 | |||
Senior Debt | |||||
Borrowings | |||||
Amount extended | 5,067,935 | 4,119,242 | |||
Non-current loans and borrowings, Carrying amount | 5,024,160 | 3,879,682 | |||
Current loans and borrowings, Carrying Amount | 25,015 | 84,638 | |||
EIB Loan | |||||
Borrowings | |||||
Amount extended | 185,000 | 100,000 | |||
Non-current loans and borrowings, Carrying amount | 159,375 | 100,000 | |||
EIB Loan, Maturing in 2025 | |||||
Borrowings | |||||
Amount extended | € 100,000 | ||||
EIB Loan, Maturing in 2027 | |||||
Borrowings | |||||
Amount extended | € 85,000 | ||||
Revolving Credit | |||||
Borrowings | |||||
Amount extended | 250,146 | 284,603 | |||
Other Non-current Loans | |||||
Borrowings | |||||
Amount extended | 5,536,261 | 4,536,845 | |||
Non-current loans and borrowings | 5,019,096 | 3,843,593 | |||
BEI Loan | |||||
Borrowings | |||||
Current loans and borrowings, Carrying Amount | 10,625 | ||||
Other Current Loans | |||||
Borrowings | |||||
Amount extended | 131,700 | 208,105 | |||
Current loans and borrowings, Carrying Amount | € 18,902 | € 23,288 | |||
Other Current Loans | Minimum | |||||
Borrowings | |||||
Borrowings, interest rate | 0.10% | 0.10% | |||
Other Current Loans | Maximum | |||||
Borrowings | |||||
Borrowings, interest rate | 3.74% | 3.74% | |||
US Dollars | Senior Debt Tranche A Maturing in 2023 | |||||
Borrowings | |||||
Interest rate basis | Libor | ||||
Adjustment to interest rate basis (as a percent) | 1.75% | 1.75% | 1.75% | ||
Amount extended | € 1,959,476 | ||||
Non-current loans and borrowings, Carrying amount | € 1,959,476 | ||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | |||||
Borrowings | |||||
Interest rate basis | Libor | ||||
Adjustment to interest rate basis (as a percent) | 2.25% | 2.25% | |||
Amount extended | € 2,501,459 | ||||
Non-current loans and borrowings, Carrying amount | 2,457,684 | ||||
Current loans and borrowings, Carrying Amount | € 25,015 | ||||
US Dollars | Senior Debt, Tranche B, Maturing in 2021 | |||||
Borrowings | |||||
Adjustment to interest rate basis (as a percent) | 3.00% | 3.00% | |||
Amount extended | € 3,055,168 | ||||
Non-current loans and borrowings, Carrying amount | 2,967,574 | ||||
Current loans and borrowings, Carrying Amount | € 30,832 | ||||
US Dollars | Senior Debt, Tranche A, Maturing in 2020 | |||||
Borrowings | |||||
Adjustment to interest rate basis (as a percent) | 2.50% | 2.50% | |||
Borrowings, interest rate | 2.50% | ||||
Amount extended | € 664,074 | ||||
Non-current loans and borrowings, Carrying amount | 527,108 | ||||
Current loans and borrowings, Carrying Amount | € 49,806 | ||||
US Dollars | Revolving Credit Facility, Maturing in 2023 | |||||
Borrowings | |||||
Adjustment to interest rate basis (as a percent) | 1.75% | 1.75% | |||
Amount extended | € 250,146 | ||||
US Dollars | Revolving Credit Facility, Maturing in 2019 | |||||
Borrowings | |||||
Adjustment to interest rate basis (as a percent) | 2.50% | 2.50% | |||
Amount extended | € 284,603 | ||||
Euros | Senior Debt Tranche A Maturing in 2023 | |||||
Borrowings | |||||
Interest rate basis | Euribor | ||||
Adjustment to interest rate basis (as a percent) | 1.75% | 1.75% | 1.75% | ||
Amount extended | € 607,000 | ||||
Non-current loans and borrowings, Carrying amount | € 607,000 | ||||
Euros | Senior Debt Tranche B, Maturing in 2025 | |||||
Borrowings | |||||
Adjustment to interest rate basis (as a percent) | 2.25% | ||||
Euros | Senior Debt, Tranche B, Maturing in 2021 | |||||
Borrowings | |||||
Adjustment to interest rate basis (as a percent) | 3.00% | 3.00% | |||
Amount extended | € 400,000 | ||||
Non-current loans and borrowings, Carrying amount | 385,000 | ||||
Current loans and borrowings, Carrying Amount | 4,000 | ||||
Euros | EIB Loan, Maturing in 2025 | |||||
Borrowings | |||||
Borrowings, interest rate | 2.70% | ||||
Amount extended | € 100,000 | 100,000 | |||
Non-current loans and borrowings, Carrying amount | € 74,375 | € 100,000 | |||
Euros | EIB Loan, Maturing in 2027 | |||||
Borrowings | |||||
Borrowings, interest rate | 2.02% | ||||
Amount extended | € 85,000 | ||||
Non-current loans and borrowings, Carrying amount | € 85,000 | ||||
Euros | Other Non-current Loans | |||||
Borrowings | |||||
Adjustment to interest rate basis (as a percent) | 4.00% | 4.00% | |||
Amount extended | € 33,180 | € 33,000 | |||
Non-current loans and borrowings, Carrying amount | € 9,839 | € 14,898 | |||
Euros | BEI Loan | |||||
Borrowings | |||||
Borrowings, interest rate | 2.70% | ||||
Current loans and borrowings, Carrying Amount | € 10,625 |
Financial Liabilities - Seni148
Financial Liabilities - Senior Secured Debt (Details) € in Thousands, $ in Thousands | Feb. 06, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2017USD ($)tranche | Dec. 31, 2017EUR (€)tranche | Feb. 06, 2017EUR (€) |
Disclosure of detailed information about borrowings [line items] | |||||||
Refinance costs | € 263,344 | € 244,829 | € 240,335 | ||||
Senior Debt | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | $ | $ 6,000,000 | ||||||
Refinance costs | € 84,800 | ||||||
Unamortized financing costs | € 154,000 | € 195,000 | |||||
Details by maturity: | |||||||
Principal amount | $ | 6,000,000 | ||||||
Senior Debt Tranche A Maturing in 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt term | 6 years | ||||||
Number of tranches | tranche | 2 | 2 | |||||
Senior Debt Tranche B, Maturing in 2025 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt term | 8 years | ||||||
US Dollars | Senior Debt Tranche A Maturing in 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | $ 2,350,000 | $ 2,350,000 | € 1,959,476 | ||||
Adjustment to interest rate basis (as a percent) | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | ||
Interest rate basis | Libor | ||||||
Details by maturity: | |||||||
Principal amount | $ 2,350,000 | $ 2,350,000 | € 1,959,476 | ||||
US Dollars | Senior Debt Tranche A Maturing in 2023 | Not later than one year | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 117,500 | 97,974 | |||||
Details by maturity: | |||||||
Principal amount | 117,500 | 97,974 | |||||
US Dollars | Senior Debt Tranche A Maturing in 2023 | Later than one year and not later than two years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 235,000 | 195,948 | |||||
Details by maturity: | |||||||
Principal amount | 235,000 | 195,948 | |||||
US Dollars | Senior Debt Tranche A Maturing in 2023 | Later than two years and not later than three years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 235,000 | 195,948 | |||||
Details by maturity: | |||||||
Principal amount | 235,000 | 195,948 | |||||
US Dollars | Senior Debt Tranche A Maturing in 2023 | Later than three years and not later than four years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 1,321,875 | 1,102,204 | |||||
Details by maturity: | |||||||
Principal amount | 1,321,875 | 1,102,204 | |||||
US Dollars | Senior Debt Tranche A Maturing in 2023 | Later than four years and not later than five years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 440,625 | 367,402 | |||||
Details by maturity: | |||||||
Principal amount | $ 440,625 | € 367,402 | |||||
US Dollars | Senior Debt, Tranche A, Maturing in 2020 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate basis (as a percent) | 2.50% | 2.50% | 2.50% | ||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | $ 3,000,000 | $ 2,977,500 | € 2,482,699 | ||||
Adjustment to interest rate basis (as a percent) | 2.25% | 2.25% | 2.25% | ||||
Interest rate basis | Libor | ||||||
Details by maturity: | |||||||
Principal amount | $ 3,000,000 | $ 2,977,500 | € 2,482,699 | ||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | Not later than one year | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 30,000 | 25,015 | |||||
Details by maturity: | |||||||
Principal amount | 30,000 | 25,015 | |||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | Later than one year and not later than two years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 30,000 | 25,015 | |||||
Details by maturity: | |||||||
Principal amount | 30,000 | 25,015 | |||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | Later than two years and not later than three years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 30,000 | 25,015 | |||||
Details by maturity: | |||||||
Principal amount | 30,000 | 25,015 | |||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | Later than three years and not later than four years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 30,000 | 25,015 | |||||
Details by maturity: | |||||||
Principal amount | 30,000 | 25,015 | |||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | Later than four years and not later than five years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 30,000 | 25,015 | |||||
Details by maturity: | |||||||
Principal amount | 30,000 | 25,015 | |||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 30,000 | 25,015 | |||||
Details by maturity: | |||||||
Principal amount | 30,000 | 25,015 | |||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | 2024 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 30,000 | 25,015 | |||||
Details by maturity: | |||||||
Principal amount | 30,000 | 25,015 | |||||
US Dollars | Senior Debt Tranche B, Maturing in 2025 | 2025 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 2,767,500 | 2,307,594 | |||||
Details by maturity: | |||||||
Principal amount | $ 2,767,500 | € 2,307,594 | |||||
US Dollars | Senior Debt, Tranche B, Maturing in 2021 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate basis (as a percent) | 3.00% | 3.00% | 3.00% | ||||
Euros | Senior Debt Tranche A Maturing in 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | € 607,000 | € 607,000 | |||||
Adjustment to interest rate basis (as a percent) | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | ||
Interest rate basis | Euribor | ||||||
Details by maturity: | |||||||
Principal amount | € 607,000 | € 607,000 | |||||
Euros | Senior Debt Tranche A Maturing in 2023 | Not later than one year | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 30,350 | ||||||
Details by maturity: | |||||||
Principal amount | 30,350 | ||||||
Euros | Senior Debt Tranche A Maturing in 2023 | Later than one year and not later than two years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 60,700 | ||||||
Details by maturity: | |||||||
Principal amount | 60,700 | ||||||
Euros | Senior Debt Tranche A Maturing in 2023 | Later than two years and not later than three years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 60,700 | ||||||
Details by maturity: | |||||||
Principal amount | 60,700 | ||||||
Euros | Senior Debt Tranche A Maturing in 2023 | Later than three years and not later than four years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 341,437 | ||||||
Details by maturity: | |||||||
Principal amount | 341,437 | ||||||
Euros | Senior Debt Tranche A Maturing in 2023 | Later than four years and not later than five years | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount | 113,813 | ||||||
Details by maturity: | |||||||
Principal amount | € 113,813 | ||||||
Euros | Senior Debt Tranche B, Maturing in 2025 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate basis (as a percent) | 2.25% | 2.25% | |||||
Euros | Senior Debt, Tranche B, Maturing in 2021 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate basis (as a percent) | 3.00% | 3.00% | 3.00% |
Financial Liabilities - Revolvi
Financial Liabilities - Revolving Facility and Other (Details) - Revolving Credit Facility, Maturing in 2023 - USD ($) $ in Millions | Dec. 31, 2017 | Feb. 06, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Maximum borrowing capacity | $ 300 | $ 300 |
Borrowings | $ 0 |
Financial Liabilities - Finance
Financial Liabilities - Finance Lease Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finance Lease Liabilities | ||
Minimum payments | € 10,135 | € 10,726 |
Interest | 775 | 781 |
Present value | 9,360 | 9,945 |
Not later than one year | ||
Finance Lease Liabilities | ||
Minimum payments | 4,305 | 4,267 |
Interest | 360 | 408 |
Present value | 3,945 | 3,859 |
Later than one year and not later than two years | ||
Finance Lease Liabilities | ||
Minimum payments | 2,636 | 3,636 |
Interest | 179 | 263 |
Present value | 2,457 | 3,373 |
Later than two years and not later than three years | ||
Finance Lease Liabilities | ||
Minimum payments | 1,461 | 1,792 |
Interest | 88 | 88 |
Present value | 1,373 | 1,704 |
Later than three years and not later than four years | ||
Finance Lease Liabilities | ||
Minimum payments | 814 | 672 |
Interest | 60 | 16 |
Present value | 754 | 656 |
Later than four years and not later than five years | ||
Finance Lease Liabilities | ||
Minimum payments | 369 | 306 |
Interest | 42 | 5 |
Present value | 327 | 301 |
More than 5 years | ||
Finance Lease Liabilities | ||
Minimum payments | 550 | 53 |
Interest | 46 | 1 |
Present value | € 504 | € 52 |
Financial Liabilities - Other F
Financial Liabilities - Other Financial Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 03, 2016 |
Financial Liabilities | |||
Amount of interest free loans extended by governmental institutions | € 20,306 | € 20,543 | |
Portion of interest-free loans extended by governmental institutions that is considered a grant | 812 | 885 | |
Call option included in other financial liabilities | 5,000 | ||
Amount collected directly from Spanish Social Security affiliated bodies and transferred to financial institutions included in other current financial liabilities | 3,056 | 17,578 | |
Other financial liabilities | 45,640 | 57,096 | |
Not later than one year | |||
Financial Liabilities | |||
Other financial liabilities | 22,003 | 26,121 | |
Later than one year and not later than two years | |||
Financial Liabilities | |||
Other financial liabilities | 10,818 | 11,468 | |
Later than two years and not later than three years | |||
Financial Liabilities | |||
Other financial liabilities | 3,787 | 6,203 | |
Later than three years and not later than four years | |||
Financial Liabilities | |||
Other financial liabilities | 2,794 | 5,802 | |
Later than four years and not later than five years | |||
Financial Liabilities | |||
Other financial liabilities | 2,247 | 2,490 | |
More than 5 years | |||
Financial Liabilities | |||
Other financial liabilities | € 3,991 | € 5,012 | |
Progenika Biopharma, S.A. (Spain) | |||
Financial Liabilities | |||
Additional stake acquired (as a percent) | 32.93% |
Trade and Other Payables (Detai
Trade and Other Payables (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and Other Payables | ||
Suppliers | € 423,096 | € 461,073 |
VAT payable | 8,827 | 10,048 |
Taxation authorities, withholdings payable | 24,084 | 23,700 |
Social security payable | 11,741 | 11,422 |
Other public entities | 97,068 | 97,724 |
Other payables | 141,720 | 142,894 |
Current income tax liabilities | 6,709 | 7,957 |
Total trade and other payables | € 571,525 | € 611,924 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Current Liabilities | ||
Salaries payable | € 129,519 | € 132,755 |
Other payables | 649 | 427 |
Deferred income | 4,284 | 441 |
Advances received | 9,945 | 6,563 |
Total other current liabilities | € 144,397 | € 140,186 |
Net Revenues - Distribution by
Net Revenues - Distribution by Segment (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Distribution of net consolidated revenues by segment | |||
Net revenue | € 4,318,073 | € 4,049,830 | € 3,934,563 |
Operating Segments | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | 4,318,073 | 4,049,830 | 3,934,563 |
Intersegments | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | (34,784) | (31,386) | (25,386) |
Bioscience | Operating Segments | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | 3,429,785 | 3,195,424 | 3,032,111 |
Diagnostic | Operating Segments | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | 732,369 | 691,701 | 716,838 |
Hospital | Operating Segments | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | 105,649 | 102,251 | 96,245 |
Bio supplies | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | 66,791 | 24,387 | 24,466 |
Bio supplies | Operating Segments | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | 66,791 | 57,239 | 24,466 |
Others | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | 18,263 | 34,602 | 90,289 |
Others | Operating Segments | |||
Distribution of net consolidated revenues by segment | |||
Net revenue | € 18,263 | € 34,601 | € 90,289 |
Net Revenues - Geographical Dis
Net Revenues - Geographical Distribution (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Geographical distribution of net consolidated revenues | |||
Net revenue | € 4,318,073 | € 4,049,830 | € 3,934,563 |
USA and Canada | |||
Geographical distribution of net consolidated revenues | |||
Net revenue | 2,896,505 | 2,707,579 | 2,604,315 |
Spain | |||
Geographical distribution of net consolidated revenues | |||
Net revenue | 242,894 | 225,273 | 216,548 |
European Union | |||
Geographical distribution of net consolidated revenues | |||
Net revenue | 444,089 | 426,223 | 456,919 |
Rest of the world | |||
Geographical distribution of net consolidated revenues | |||
Net revenue | € 734,585 | € 690,755 | € 656,781 |
Net Revenues - Discounts and Ot
Net Revenues - Discounts and Other Reductions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discounts and other reductions in gross income | |||
Gross sales | € 5,322,618 | € 4,882,615 | € 4,579,759 |
Chargebacks | (826,775) | (652,564) | (488,072) |
Cash discounts | (57,512) | (51,953) | (46,150) |
Volume rebates | (43,274) | (51,242) | (49,458) |
Medicare and Medicaid | (41,722) | (47,820) | (25,710) |
Other discounts | (35,262) | (29,206) | (35,806) |
Total net sales | € 4,318,073 | € 4,049,830 | € 3,934,563 |
Net Revenues - Movement in Disc
Net Revenues - Movement in Discounts and Other Reductions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Chargebacks | |||
Balance at beginning of year | € 87,249 | € 126,178 | € 58,431 |
Current estimate related to sales made in current and prior year | 826,775 | 652,564 | 488,072 |
(Actual returns or credits in current period related to sales made in current period) | (795,449) | (693,458) | (428,041) |
(Actual returns or credits in current period related to sales made in prior periods) | 31 | ||
Translation differences | (12,716) | 1,965 | 7,716 |
Balance at end of year | 105,890 | 87,249 | 126,178 |
Movement in Cash discounts | |||
Balance at beginning of year | 6,632 | 5,902 | 4,738 |
Current estimate related to sales made in current and prior year | 57,512 | 51,953 | 46,150 |
(Actual returns or credits in current period related to sales made in current period) | (52,270) | (51,733) | (44,867) |
(Actual returns or credits in current period related to sales made in prior periods) | (6,024) | (248) | (246) |
Translation differences | (736) | 758 | 127 |
Balance at end of year | 5,114 | 6,632 | 5,902 |
Movement in Volume rebates | |||
Balance at beginning of year | 26,507 | 29,680 | 21,030 |
Current estimate related to sales made in current and prior year | 43,274 | 51,242 | 49,458 |
(Actual returns or credits in current period related to sales made in current period) | (28,976) | (27,409) | (18,211) |
(Actual returns or credits in current period related to sales made in prior periods) | (20,210) | (27,732) | (25,051) |
Translation differences | (2,604) | 726 | 2,454 |
Balance at end of year | 17,991 | 26,507 | 29,680 |
Movement in Medicare / Medicaid | |||
Balance at beginning of year | 21,757 | 12,468 | 14,823 |
Current estimate related to sales made in current and prior year | 41,722 | 47,820 | 25,710 |
(Actual returns or credits in current period related to sales made in current period) | (28,198) | (24,988) | (18,402) |
(Actual returns or credits in current period related to sales made in prior periods) | (16,659) | (14,401) | (11,257) |
Translation differences | (2,418) | 858 | 1,594 |
Balance at end of year | 16,204 | 21,757 | 12,468 |
Movement in Other discounts | |||
Balance at beginning of year | 4,442 | 5,367 | 3,174 |
Current estimate related to sales made in current and prior year | 35,262 | 29,206 | 35,806 |
(Actual returns or credits in current period related to sales made in current period) | (26,072) | (27,243) | (34,059) |
(Actual returns or credits in current period related to sales made in prior periods) | (2,864) | (2,986) | (1,791) |
Translation differences | (625) | 98 | 2,237 |
Balance at end of year | 10,143 | 4,442 | 5,367 |
Total movement in discounts and other reductions | |||
Balance at beginning of year | 146,587 | 179,595 | 102,196 |
Current estimate related to sales made in current and prior year | 1,004,545 | 832,785 | 645,196 |
(Actual returns or credits in current period related to sales made in current period) | (930,965) | (824,831) | (543,580) |
(Actual returns or credits in current period related to sales made in prior periods) | (45,726) | (45,367) | (38,345) |
Translation differences | (19,099) | 4,405 | 14,128 |
Balance at end of year | € 155,342 | € 146,587 | € 179,595 |
Personnel Expenses (Details)
Personnel Expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details of personnel expenses by function: | |||
Cost of sales | € 731,192 | € 635,577 | € 592,037 |
Research and development | 90,495 | 77,988 | 76,780 |
Selling, general & administration expenses | 323,880 | 314,348 | 269,718 |
Total personnel expenses | 1,145,567 | 1,027,913 | 938,535 |
Details by nature: | |||
Wages and salaries | 917,810 | 822,384 | 756,570 |
Contributions to pension plans (see note 29) | 20,347 | 18,486 | 14,587 |
Other social charges | 27,679 | 25,074 | 22,071 |
Social Security | 179,731 | 161,969 | 145,307 |
Total personnel expenses | € 1,145,567 | € 1,027,913 | € 938,535 |
Expenses by Nature - Amortizati
Expenses by Nature - Amortization and Depreciation (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortization and depreciation | |||
Amortization and depreciation, cost of sales | € 135,186 | € 126,998 | € 110,898 |
Amortization and depreciation, research and development | 14,721 | 13,050 | 13,654 |
Amortization and depreciation, selling, general & administration expenses | 65,583 | 61,821 | 65,203 |
Total amortization and depreciation | € 215,490 | € 201,869 | € 189,755 |
Expenses by Nature - Other Oper
Expenses by Nature - Other Operating Income and Expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other operating income and expenses by function | |||
Other operating income and expenses, cost of sales | € 416,020 | € 454,097 | € 426,531 |
Other operating income and expenses, research and development | 129,579 | 113,078 | 118,667 |
Other operating income and expenses, selling, general & administration expenses | 460,959 | 393,523 | 403,944 |
Total other operating income and expenses | € 1,006,558 | € 960,698 | € 949,142 |
Expenses by Nature - Other O161
Expenses by Nature - Other Operating Income and Expenses, Components (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details by nature: | |||
Changes in trade provisions | € 3,648 | € (22,069) | € (763) |
Professional services | 211,579 | 190,003 | 173,990 |
Commissions | 18,473 | 20,147 | 20,474 |
Supplies and auxiliary materials | 131,932 | 119,014 | 115,471 |
Operating leases (note 28) | 80,136 | 74,945 | 70,496 |
Freight | 105,292 | 96,680 | 83,352 |
Repair and maintenance expenses | 103,518 | 89,797 | 81,087 |
Advertising | 49,893 | 51,233 | 47,860 |
Insurance | 21,529 | 20,008 | 19,501 |
Royalties | 11,241 | 9,217 | 9,386 |
Travel expenses | 58,171 | 53,239 | 52,606 |
External services | 82,699 | 43,231 | 56,743 |
R&D Expenses | 89,977 | 78,379 | 81,319 |
Other | 38,470 | 136,874 | 137,620 |
Total other operating income and expenses | € 1,006,558 | € 960,698 | € 949,142 |
Finance Result (Details)
Finance Result (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance Result | |||
Finance income | € 9,678 | € 9,934 | € 5,841 |
Finance cost from Senior Unsecured Notes | (65,189) | (73,491) | (72,783) |
Finance cost from senior debt | (193,183) | (168,332) | (161,624) |
Finance cost from sale of receivables (note 13) | (3,973) | (4,885) | (6,512) |
Capitalized interest | 8,839 | 13,019 | 9,795 |
Other finance costs | (9,838) | (11,140) | (9,211) |
Finance costs | (263,344) | (244,829) | (240,335) |
Change in fair value of financial derivatives (note 30) | (3,752) | (7,610) | (25,206) |
Impairment and gains / (losses) on disposal of financial instruments | (18,844) | ||
Exchange differences | (11,472) | 8,916 | (12,140) |
Finance result | € (287,734) | € (233,589) | € (271,840) |
Minimum | |||
Finance Result | |||
Capitalized interest rate (as a percent) | 4.26% | 4.80% | |
Maximum | |||
Finance Result | |||
Capitalized interest rate (as a percent) | 4.87% | 5.20% |
Taxation - Reconciliation of Ac
Taxation - Reconciliation of Accounting and Taxable Income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of accounting and taxable income | |||
Profit before income tax from continuing operations | € 695,722 | € 712,752 | € 690,250 |
Tax at 25% (28% 2015) | 173,931 | 178,188 | 193,270 |
Permanent differences | 17,163 | 8,019 | (2,709) |
Effect of different tax rates | 40,981 | 14,509 | (24,524) |
Tax credits (deductions) | (16,092) | (20,163) | (19,487) |
Impact related to the US tax legislation modifications | (171,169) | ||
Prior year income tax expense | (8,614) | 928 | 2,723 |
Other income tax expenses/(income) | (1,792) | (13,272) | 9,536 |
Total income tax expense | € 34,408 | € 168,209 | € 158,809 |
United States | |||
Taxation | |||
Tax rate of the companies domiciled in the U.S.A (as a percent) | 36.50% | ||
Reconciliation of accounting and taxable income | |||
Tax rate (as a percent) | 35.00% | ||
Impact related to the US tax legislation modifications | € 171,000 | ||
Spain | |||
Reconciliation of accounting and taxable income | |||
Tax rate (as a percent) | 25.00% | 28.00% |
Taxation - Income Tax Expense -
Taxation - Income Tax Expense - Deferred Tax Assets and Liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of accounting and taxable income | ||||
Deferred tax | € (149,443) | € (40,161) | € 24,357 | |
Current tax | 183,851 | 208,370 | 134,452 | |
Total income tax expense | 34,408 | € 168,209 | € 158,809 | |
Impact registered in income tax expense due to change in tax rate | € (171,169) | |||
United States | ||||
Reconciliation of accounting and taxable income | ||||
Tax rate (as a percent) | 35.00% | |||
Impact registered in income tax expense due to change in tax rate | € 171,000 | |||
United States | Forecast | ||||
Reconciliation of accounting and taxable income | ||||
Tax rate (as a percent) | 21.00% |
Taxation - Deferred Tax Assets
Taxation - Deferred Tax Assets and Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets and liabilities | |||
Deferred assets, net | € 66,157 | € 67,219 | € 66,794 |
Net deferred Liabilities | (388,912) | (600,646) | (631,565) |
Assets | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | 103,342 | 94,788 | 155,307 |
Net deferred Liabilities | 79,441 | 146,778 | 39,634 |
Assets | Provisions | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | 4,564 | 3,696 | 38,004 |
Net deferred Liabilities | 47,404 | 61,252 | 22,085 |
Assets | Inventories | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | 35,619 | 39,297 | 37,141 |
Assets | Tax credits (deductions) | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | 49,467 | 37,685 | 42,533 |
Assets | Tax loss carryforwards | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | 6,179 | 10,717 | 30,668 |
Net deferred Liabilities | 15,384 | 40,358 | 7,097 |
Assets | Other | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | 7,513 | 3,393 | 6,961 |
Net deferred Liabilities | 16,653 | 45,168 | 10,452 |
Liabilities | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | (37,185) | (27,569) | (88,513) |
Net deferred Liabilities | (468,353) | (747,424) | (671,199) |
Liabilities | Inventories | |||
Deferred tax assets and liabilities | |||
Net deferred Liabilities | 5,063 | (1,175) | (32,351) |
Liabilities | Goodwill | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | (22,346) | (19,136) | (77,755) |
Net deferred Liabilities | (105,963) | (131,039) | (35,877) |
Liabilities | Fixed assets | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | (7,780) | (7,062) | (10,409) |
Net deferred Liabilities | (95,029) | (158,060) | (119,858) |
Liabilities | Intangible assets | |||
Deferred tax assets and liabilities | |||
Deferred assets, net | (7,059) | (1,371) | (349) |
Net deferred Liabilities | (201,921) | (392,388) | (404,617) |
Liabilities | Debt cancellation costs | |||
Deferred tax assets and liabilities | |||
Net deferred Liabilities | € (70,503) | € (64,762) | (77,514) |
Liabilities | Cash flow hedges | |||
Deferred tax assets and liabilities | |||
Net deferred Liabilities | € (982) |
Taxation - Movement in Deferred
Taxation - Movement in Deferred Tax Assets and Liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets and liabilities | |||
Balance at 1 January | € (533,427) | € (564,771) | € (456,341) |
Movements during the year | 149,443 | 40,161 | (24,357) |
Movements in equity during the year | (10,960) | ||
Business combination (note 3) | 16,736 | ||
Translation differences | 44,493 | (8,817) | (73,113) |
Balance at 31 December | € (322,755) | € (533,427) | € (564,771) |
Taxation - Deferred Tax Asse167
Taxation - Deferred Tax Assets and Liabilities, Others (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets and liabilities | |||
Net deferred tax assets | € 66,157 | € 67,219 | € 66,794 |
Unrecognized deferred tax assets | 51,169 | 67,044 | |
Not later than one year | |||
Deferred tax assets and liabilities | |||
Net deferred tax assets | € 51,930 | € 99,897 | |
Spain | |||
Deferred tax assets and liabilities | |||
Tax deduction maturity term | 18 years | ||
Tax credit carryforward (in years) | 15 years | ||
United States | |||
Deferred tax assets and liabilities | |||
Tax credit carryforward (in years) | 20 years |
Operating Leases (Details)
Operating Leases (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating leases (as lessee) | |||
Operating leases instalments recognized as an expense | € 80,136 | € 74,945 | € 70,496 |
Future minimum payments on non-cancellable operating leases | 262,343 | 350,931 | 305,914 |
Operating leases (as lessor) | |||
Operating leases (as lessor) | 0 | 0 | 0 |
Not later than one year | |||
Operating leases (as lessee) | |||
Future minimum payments on non-cancellable operating leases | 46,541 | 56,869 | 77,951 |
Between 1 and 5 years | |||
Operating leases (as lessee) | |||
Future minimum payments on non-cancellable operating leases | 156,897 | 181,076 | 126,644 |
More than 5 years | |||
Operating leases (as lessee) | |||
Future minimum payments on non-cancellable operating leases | € 58,905 | € 112,986 | € 101,319 |
Other Commitments with Third169
Other Commitments with Third Parties and Other Contingent Liabilities (Details) € in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)Yitemdirector | Dec. 31, 2017EUR (€)Yitemdirector | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Other Commitments with Third Parties and Other Contingent Liabilities | ||||
Annual contribution to defined contribution pension plans | € | € 725 | € 674 | ||
Agreements with employees/directors | director | 73 | 73 | ||
Number of executives with whom contract entered | item | 9 | 9 | ||
Percentage of annual bonus in Grifols Class B Shares or Grifols ADS | 50.00% | 50.00% | ||
Matching percentage to the employees contribution | 50.00% | 50.00% | ||
Vesting Period | 2 years 1 day | 2 years 1 day | ||
Exchange ratio | 1 | 1 | ||
Amount settled under RSU plan | € | € 7,303 | |||
Equity-settled commitment | € | € 13,871 | € 10,594 | ||
Percentage of groups contribution to match first 3% of employees | 100.00% | 100.00% | ||
Percentage of groups contribution to match the next 2% of employees | 50.00% | 50.00% | ||
Total cost of matching contributions | $ | $ 18.9 | $ 17 | ||
Minimum | ||||
Other Commitments with Third Parties and Other Contingent Liabilities | ||||
Number of years of salary for employees/directors | 2 | 2 | ||
Number of years of salary for executives | 1 | 1 | ||
Maximum | ||||
Other Commitments with Third Parties and Other Contingent Liabilities | ||||
Number of years of salary for employees/directors | 5 | 5 | ||
Number of years of salary for executives | 4 | 4 |
Other Commitments with Third170
Other Commitments with Third Parties and Other Contingent Liabilities - Purchase commitments (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2017EUR (€)employee | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Number of employees against whom investigation was opened | employee | 5 |
Number of employees against whom judicial process was discharged | employee | 3 |
Number of employees against whom judicial process continued | employee | 2 |
Not later than one year | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Purchase commitments | € 83,782 |
Later than one year and not later than two years | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Purchase commitments | 62,510 |
Later than two years and not later than three years | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Purchase commitments | 56,183 |
Later than three years and not later than four years | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Purchase commitments | 39,765 |
Later than four years and not later than five years | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Purchase commitments | 9,249 |
2,023 | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Purchase commitments | 780 |
2,024 | |
Other Commitments with Third Parties and Other Contingent Liabilities | |
Purchase commitments | € 780 |
Financial Instruments - Classif
Financial Instruments - Classification by Nature, Category and Fair Value (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Net financial liabilities | € (5,222,848) | € (3,989,368) |
Trade and other receivables | ||
Financial instruments | ||
Financial assets | 304,864 | 434,136 |
Measured at fair value | ||
Financial instruments | ||
Financial assets | 47,046 | 58,864 |
Measured at fair value | Non-current financial assets | ||
Financial instruments | ||
Financial assets | 38,708 | 45,199 |
Financial assets, at fair value | 38,708 | 45,199 |
Measured at fair value | Financial derivatives | ||
Financial instruments | ||
Financial assets | 8,338 | 13,665 |
Financial assets, at fair value | 8,338 | 13,665 |
Measured at fair value | Level 1 | Non-current financial assets | ||
Financial instruments | ||
Financial assets, at fair value | 38,708 | 29,998 |
Measured at fair value | Level 2 | Non-current financial assets | ||
Financial instruments | ||
Financial assets, at fair value | 15,201 | |
Measured at fair value | Level 3 | Financial derivatives | ||
Financial instruments | ||
Financial assets, at fair value | 8,338 | 13,665 |
Not measured at fair value | ||
Financial instruments | ||
Financial assets | 1,224,966 | 1,362,408 |
Financial liabilities | (6,494,860) | (5,410,640) |
Not measured at fair value | Senior Unsecured Notes | ||
Financial instruments | ||
Financial liabilities | (858,911) | (843,868) |
Financial liabilities, at fair value | (1,018,130) | (904,377) |
Not measured at fair value | Promissory Notes | ||
Financial instruments | ||
Financial liabilities | (90,294) | (83,073) |
Not measured at fair value | Senior secured debt | ||
Financial instruments | ||
Financial liabilities | (4,853,939) | (3,809,968) |
Financial liabilities, at fair value | (5,063,769) | (3,811,970) |
Not measured at fair value | Other bank loans | ||
Financial instruments | ||
Financial liabilities | (198,741) | (138,186) |
Not measured at fair value | Finance lease payable | ||
Financial instruments | ||
Financial liabilities | (9,360) | (9,945) |
Not measured at fair value | Other financial liabilities | ||
Financial instruments | ||
Financial liabilities | (45,640) | (57,096) |
Not measured at fair value | Trade payables | ||
Financial instruments | ||
Financial liabilities | (423,096) | (461,073) |
Not measured at fair value | Other current liabilities | ||
Financial instruments | ||
Financial liabilities | (14,879) | (7,431) |
Not measured at fair value | Non-current financial assets | ||
Financial instruments | ||
Financial assets | 22,843 | 30,681 |
Not measured at fair value | Other current financial assets | ||
Financial instruments | ||
Financial assets | 10,738 | 2,582 |
Not measured at fair value | Trade and other receivables | ||
Financial instruments | ||
Financial assets | 304,864 | 434,136 |
Not measured at fair value | Cash and cash equivalents | ||
Financial instruments | ||
Financial assets | 886,521 | 895,009 |
Not measured at fair value | Level 1 | Senior Unsecured Notes | ||
Financial instruments | ||
Financial liabilities, at fair value | (1,018,130) | (904,377) |
Not measured at fair value | Level 2 | Senior secured debt | ||
Financial instruments | ||
Financial liabilities, at fair value | (5,063,769) | (3,811,970) |
Loans and receivables | ||
Financial instruments | ||
Financial assets | 1,224,966 | 1,377,609 |
Loans and receivables | Measured at fair value | ||
Financial instruments | ||
Financial assets | 15,201 | |
Loans and receivables | Measured at fair value | Non-current financial assets | ||
Financial instruments | ||
Financial assets | 15,201 | |
Loans and receivables | Not measured at fair value | ||
Financial instruments | ||
Financial assets | 1,224,966 | 1,362,408 |
Loans and receivables | Not measured at fair value | Non-current financial assets | ||
Financial instruments | ||
Financial assets | 22,843 | 30,681 |
Loans and receivables | Not measured at fair value | Other current financial assets | ||
Financial instruments | ||
Financial assets | 10,738 | 2,582 |
Loans and receivables | Not measured at fair value | Trade and other receivables | ||
Financial instruments | ||
Financial assets | 304,864 | 434,136 |
Loans and receivables | Not measured at fair value | Cash and cash equivalents | ||
Financial instruments | ||
Financial assets | 886,521 | 895,009 |
Financial instruments held for trading | ||
Financial instruments | ||
Financial assets | 8,338 | 13,665 |
Financial instruments held for trading | Measured at fair value | ||
Financial instruments | ||
Financial assets | 8,338 | 13,665 |
Financial instruments held for trading | Measured at fair value | Financial derivatives | ||
Financial instruments | ||
Financial assets | 8,338 | 13,665 |
Available for sale financial assets | ||
Financial instruments | ||
Financial assets | 38,708 | 29,998 |
Available for sale financial assets | Measured at fair value | ||
Financial instruments | ||
Financial assets | 38,708 | 29,998 |
Available for sale financial assets | Measured at fair value | Non-current financial assets | ||
Financial instruments | ||
Financial assets | 38,708 | 29,998 |
Debts and payables | ||
Financial instruments | ||
Financial liabilities | (6,494,860) | (5,410,640) |
Debts and payables | Not measured at fair value | ||
Financial instruments | ||
Financial liabilities | (6,494,860) | (5,410,640) |
Debts and payables | Not measured at fair value | Senior Unsecured Notes | ||
Financial instruments | ||
Financial liabilities | (858,911) | (843,868) |
Debts and payables | Not measured at fair value | Promissory Notes | ||
Financial instruments | ||
Financial liabilities | (90,294) | (83,073) |
Debts and payables | Not measured at fair value | Senior secured debt | ||
Financial instruments | ||
Financial liabilities | (4,853,939) | (3,809,968) |
Debts and payables | Not measured at fair value | Other bank loans | ||
Financial instruments | ||
Financial liabilities | (198,741) | (138,186) |
Debts and payables | Not measured at fair value | Finance lease payable | ||
Financial instruments | ||
Financial liabilities | (9,360) | (9,945) |
Debts and payables | Not measured at fair value | Other financial liabilities | ||
Financial instruments | ||
Financial liabilities | (45,640) | (57,096) |
Debts and payables | Not measured at fair value | Trade payables | ||
Financial instruments | ||
Financial liabilities | (423,096) | (461,073) |
Debts and payables | Not measured at fair value | Other current liabilities | ||
Financial instruments | ||
Financial liabilities | € (14,879) | € (7,431) |
Financial Instruments - Financi
Financial Instruments - Financial Derivatives (Details) € in Thousands, $ in Millions | May 11, 2016USD ($) | May 11, 2016EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) |
Financial derivatives | ||||
Financial instruments | ||||
Financial assets | € 8,338 | € 13,665 | ||
Call Option | ||||
Financial instruments | ||||
Amount paid for call right | $ 10 | € 8,960 | ||
US Dollars | Call Option | ||||
Financial instruments | ||||
Financial assets | € 8,338 | 9,487 | ||
US Dollars | Embedded derivative | ||||
Financial instruments | ||||
Financial assets | € 4,178 |
Financial Instruments - Maximum
Financial Instruments - Maximum Level of Exposure to Credit Risk (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Credit risk | ||
Maximum exposure to credit risk | € 1,272,012 | € 1,421,272 |
Non-current financial assets | ||
Credit risk | ||
Maximum exposure to credit risk | 69,889 | 89,545 |
Other current financial assets | ||
Credit risk | ||
Maximum exposure to credit risk | 10,738 | 2,582 |
Trade and other receivables | ||
Credit risk | ||
Maximum exposure to credit risk | 304,864 | 434,136 |
Trade and other receivables | Spain | ||
Credit risk | ||
Maximum exposure to credit risk | 63,505 | 56,104 |
Trade and other receivables | Rest of European Union | ||
Credit risk | ||
Maximum exposure to credit risk | 53,403 | 52,034 |
Trade and other receivables | United States | ||
Credit risk | ||
Maximum exposure to credit risk | 65,068 | 196,885 |
Trade and other receivables | Other European countries | ||
Credit risk | ||
Maximum exposure to credit risk | 5,761 | 13,428 |
Trade and other receivables | Other regions | ||
Credit risk | ||
Maximum exposure to credit risk | 117,127 | 115,685 |
Trade receivables | ||
Credit risk | ||
Maximum exposure to credit risk | 286,198 | 413,656 |
Other receivables | ||
Credit risk | ||
Maximum exposure to credit risk | 18,666 | 20,480 |
Cash and cash equivalents | ||
Credit risk | ||
Maximum exposure to credit risk | € 886,521 | € 895,009 |
Financial Instruments - Credit
Financial Instruments - Credit Risk - Balances Receivable by Country (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Credit risk | ||
Trade receivables | € 286,198 | € 413,656 |
Greece, Italy, Spain and Portugal | ||
Credit risk | ||
Trade receivables | 71,001 | 69,402 |
Greece | ||
Credit risk | ||
Trade receivables | 745 | 288 |
Italy | ||
Credit risk | ||
Trade receivables | 10,618 | 16,286 |
Spain | ||
Credit risk | ||
Trade receivables | 57,010 | 50,348 |
Portugal | ||
Credit risk | ||
Trade receivables | 2,628 | 2,480 |
Gross carrying amount | Balances with public entities | Greece, Italy, Spain and Portugal | ||
Credit risk | ||
Trade receivables | 38,800 | 33,203 |
Gross carrying amount | Balances with public entities | Greece, Italy, Spain and Portugal | Past due | ||
Credit risk | ||
Trade receivables | 10,623 | 6,569 |
Gross carrying amount | Balances with public entities | Italy | ||
Credit risk | ||
Trade receivables | 4,020 | 7,188 |
Gross carrying amount | Balances with public entities | Italy | Past due | ||
Credit risk | ||
Trade receivables | 2,348 | 2,077 |
Gross carrying amount | Balances with public entities | Spain | ||
Credit risk | ||
Trade receivables | 33,702 | 23,281 |
Gross carrying amount | Balances with public entities | Spain | Past due | ||
Credit risk | ||
Trade receivables | 7,785 | 3,287 |
Gross carrying amount | Balances with public entities | Portugal | ||
Credit risk | ||
Trade receivables | 1,078 | 2,734 |
Gross carrying amount | Balances with public entities | Portugal | Past due | ||
Credit risk | ||
Trade receivables | 490 | 1,205 |
Gross carrying amount | Balance with third parties | Greece, Italy, Spain and Portugal | ||
Credit risk | ||
Trade receivables | 36,775 | 40,066 |
Gross carrying amount | Balance with third parties | Greece, Italy, Spain and Portugal | Past due | ||
Credit risk | ||
Trade receivables | 16,353 | 17,048 |
Gross carrying amount | Balance with third parties | Greece | ||
Credit risk | ||
Trade receivables | 745 | 425 |
Gross carrying amount | Balance with third parties | Italy | ||
Credit risk | ||
Trade receivables | 10,614 | 12,196 |
Gross carrying amount | Balance with third parties | Italy | Past due | ||
Credit risk | ||
Trade receivables | 6,342 | 7,375 |
Gross carrying amount | Balance with third parties | Spain | ||
Credit risk | ||
Trade receivables | 23,444 | 27,316 |
Gross carrying amount | Balance with third parties | Spain | Past due | ||
Credit risk | ||
Trade receivables | 8,926 | 9,595 |
Gross carrying amount | Balance with third parties | Portugal | ||
Credit risk | ||
Trade receivables | 1,972 | 129 |
Gross carrying amount | Balance with third parties | Portugal | Past due | ||
Credit risk | ||
Trade receivables | 1,085 | 78 |
Accumulated impairment | Balances with public entities | Greece, Italy, Spain and Portugal | ||
Credit risk | ||
Trade receivables | (296) | (356) |
Accumulated impairment | Balances with public entities | Portugal | ||
Credit risk | ||
Trade receivables | (296) | (356) |
Accumulated impairment | Balance with third parties | Greece, Italy, Spain and Portugal | ||
Credit risk | ||
Trade receivables | (4,278) | (3,511) |
Accumulated impairment | Balance with third parties | Greece | ||
Credit risk | ||
Trade receivables | (137) | |
Accumulated impairment | Balance with third parties | Italy | ||
Credit risk | ||
Trade receivables | (4,016) | (3,098) |
Accumulated impairment | Balance with third parties | Spain | ||
Credit risk | ||
Trade receivables | (136) | (249) |
Accumulated impairment | Balance with third parties | Portugal | ||
Credit risk | ||
Trade receivables | € (126) | € (27) |
Financial Instruments - Trade R
Financial Instruments - Trade Receivables - Maturity and Bad Debt Provision (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in the bad debt provision | |||
Opening balance | € 17,987 | € 13,210 | € 14,092 |
Net charges for the year | 8,003 | 6,411 | 1,800 |
Net cancellations for the year | (4,732) | (2,217) | (2,984) |
Translation differences | (1,552) | 583 | 302 |
Closing balance | 19,706 | 17,987 | € 13,210 |
Trade and other receivables | |||
Financial Assets | |||
Financial assets | 304,864 | 434,136 | |
Not matured | Trade and other receivables | |||
Financial Assets | |||
Financial assets | 249,652 | 360,018 | |
Less than 1 month | Trade and other receivables | |||
Financial Assets | |||
Financial assets | 24,302 | 24,650 | |
1 to 4 months | Trade and other receivables | |||
Financial Assets | |||
Financial assets | 18,717 | 29,318 | |
4 months to 1 year | Trade and other receivables | |||
Financial Assets | |||
Financial assets | 8,092 | 10,045 | |
More than one year | Trade and other receivables | |||
Financial Assets | |||
Financial assets | € 4,101 | € 10,105 |
Financial Instruments - Contrac
Financial Instruments - Contractual Maturity Dates of Financial Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying amount at | ||
Bank loans | € 5,052,680 | € 3,948,154 |
Other financial liabilities | 45,640 | 57,096 |
Bonds and other marketable securities | 949,205 | 926,941 |
Finance lease payables | 9,360 | 9,945 |
Payable to suppliers | 423,096 | 461,073 |
Other current liabilities | 14,878 | 7,431 |
Total carrying amount | 6,494,859 | 5,410,640 |
Contractual flows | ||
Bank loans | 6,138,673 | 4,669,325 |
Other financial liabilities | 45,642 | 57,096 |
Bonds and other marketable securities | 1,331,203 | 1,305,680 |
Finance lease payables | 10,136 | 10,725 |
Payable to suppliers | 423,096 | 461,073 |
Other current liabilities | 14,878 | 7,431 |
Total contractual flows | 7,963,628 | 6,511,330 |
6 months or less | ||
Contractual flows | ||
Bank loans | 105,584 | 134,918 |
Other financial liabilities | 19,393 | 23,082 |
Bonds and other marketable securities | 107,203 | 107,975 |
Finance lease payables | 2,192 | 2,195 |
Payable to suppliers | 423,020 | 461,029 |
Other current liabilities | 14,462 | 7,118 |
Total contractual flows | 671,854 | 736,317 |
6 - 12 months | ||
Contractual flows | ||
Bank loans | 106,492 | 119,476 |
Other financial liabilities | 2,610 | 3,039 |
Bonds and other marketable securities | 16,000 | 24,903 |
Finance lease payables | 2,113 | 2,072 |
Payable to suppliers | 76 | 44 |
Other current liabilities | 416 | 313 |
Total contractual flows | 127,707 | 149,847 |
Later than one year and not later than two years | ||
Carrying amount at | ||
Other financial liabilities | 10,818 | 11,468 |
Contractual flows | ||
Bank loans | 322,421 | 192,059 |
Other financial liabilities | 10,758 | 11,468 |
Bonds and other marketable securities | 32,000 | 49,806 |
Finance lease payables | 2,602 | 3,630 |
Total contractual flows | 367,781 | 256,963 |
2-5 years | ||
Contractual flows | ||
Bank loans | 3,115,887 | 4,183,259 |
Other financial liabilities | 10,497 | 16,686 |
Bonds and other marketable securities | 128,000 | 1,122,996 |
Finance lease payables | 2,790 | 2,828 |
Total contractual flows | 3,257,174 | 5,325,769 |
More than 5 years | ||
Carrying amount at | ||
Other financial liabilities | 3,991 | 5,012 |
Contractual flows | ||
Bank loans | 2,488,289 | 39,613 |
Other financial liabilities | 2,384 | 2,821 |
Bonds and other marketable securities | 1,048,000 | |
Finance lease payables | 439 | |
Total contractual flows | € 3,539,112 | € 42,434 |
Financial Instruments - Currenc
Financial Instruments - Currency Risk (Details) € in Thousands | Dec. 31, 2017EUR (€)$ / € | Dec. 31, 2016EUR (€)$ / € |
US Dollars | ||
Sensitivity analysis | ||
Closing foreign exchange rate | $ / € | 1.1993 | 1.0541 |
Currency risk | ||
Sensitivity analysis | ||
Rate increase (as a percent) | 10.00% | 10.00% |
Increase in equity if exchange rate strengthened | € 416,116 | € 318,528 |
Increase (decrease) in profit due to foreign exchange differences if exchange rate strengthened | € 14,615 | € (11,425) |
Rate decrease (as a percent) | 10.00% | 10.00% |
Decrease in equity if exchange rate weakened | € (416,116) | € (318,528) |
Increase (decrease) in profit due to foreign exchange differences if exchange rate weakened | (14,615) | 11,425 |
Currency risk | Euros | ||
Financial instrument risk | ||
Balance sheet exposure | 40,633 | (141,103) |
Currency risk | Euros | Trade receivables | ||
Financial instrument risk | ||
Balance sheet exposure | 3,596 | 5,576 |
Currency risk | Euros | Receivables from Group companies | ||
Financial instrument risk | ||
Balance sheet exposure | 103,338 | 33,792 |
Currency risk | Euros | Loans to Group companies | ||
Financial instrument risk | ||
Balance sheet exposure | 34,140 | 597,897 |
Currency risk | Euros | Cash and cash equivalents | ||
Financial instrument risk | ||
Balance sheet exposure | 63,981 | 32,255 |
Currency risk | Euros | Trade payables | ||
Financial instrument risk | ||
Balance sheet exposure | (14,213) | (11,188) |
Currency risk | Euros | Payables to Group companies | ||
Financial instrument risk | ||
Balance sheet exposure | (42,296) | (42,395) |
Currency risk | Euros | Loans from Group companies | ||
Financial instrument risk | ||
Balance sheet exposure | (22,913) | (268,040) |
Currency risk | Euros | Bank loans | ||
Financial instrument risk | ||
Balance sheet exposure | (85,000) | (489,000) |
Currency risk | US Dollars | ||
Financial instrument risk | ||
Balance sheet exposure | 105,517 | 26,852 |
Currency risk | US Dollars | Trade receivables | ||
Financial instrument risk | ||
Balance sheet exposure | 22,936 | 7,520 |
Currency risk | US Dollars | Receivables from Group companies | ||
Financial instrument risk | ||
Balance sheet exposure | 7,619 | 37,740 |
Currency risk | US Dollars | Loans to Group companies | ||
Financial instrument risk | ||
Balance sheet exposure | 91,566 | 1,854 |
Currency risk | US Dollars | Cash and cash equivalents | ||
Financial instrument risk | ||
Balance sheet exposure | 2,172 | 21,254 |
Currency risk | US Dollars | Trade payables | ||
Financial instrument risk | ||
Balance sheet exposure | (3,582) | (5,062) |
Currency risk | US Dollars | Payables to Group companies | ||
Financial instrument risk | ||
Balance sheet exposure | (11,241) | (32,159) |
Currency risk | US Dollars | Loans from Group companies | ||
Financial instrument risk | ||
Balance sheet exposure | € (3,953) | € (4,295) |
Financial Instruments - Interes
Financial Instruments - Interest Rate Risk (Details) - Interest rate risk - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial instrument risk | ||
Financial liabilities | € (6,219,382) | € (5,012,996) |
Sensitivity analysis | ||
Higher rate increment (as a percent) | 1.00% | 1.00% |
Increase in interest expense if rate had been higher | € 53,000 | € 40,700 |
Lower finance costs due to changes in the value of derivatives if rate had been higher | 2,600 | |
Net increase in cash interest payments if rate had been higher | 53,000 | 38,100 |
Fixed-interest | ||
Financial instrument risk | ||
Financial liabilities | (1,170,000) | (1,048,676) |
Variable-interest | ||
Financial instrument risk | ||
Financial liabilities | € (5,049,382) | € (3,964,320) |
Balances and Transactions wi179
Balances and Transactions with Related Parties (Details) € in Thousands, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2011USD ($)director | |
Details of balances with related parties | |||||||
Net receivable (payable) | € 9,476 | € (3,229) | |||||
Group transactions with related parties | |||||||
Percentage of profit before tax contribution to non profit organization | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | ||
Contributions to non-profit organization | € 7,100 | € 5,325 | € 5,224 | ||||
Number of directors involved in consulting services contract | director | 1 | ||||||
Term of consulting services contract (in years) | 3 years | ||||||
Consulting services fee | $ | $ 1 | $ 1 | $ 1 | $ 1 | |||
Additional bonus | $ | $ 2 | ||||||
Extension for consulting services contract (in years) | 2 years | 2 years | |||||
Remuneration of directors representing shareholders interest | 1,881 | € 50 | |||||
Associates | |||||||
Details of balances with related parties | |||||||
Receivables | 3,219 | 133 | |||||
Trade payables | (4,583) | (4,221) | |||||
Loans | 26,654 | 15,994 | |||||
Group transactions with related parties | |||||||
Net sales | 3,009 | 193 | 317 | ||||
Purchases | (68,335) | (35,569) | |||||
Other service expenses | (11,798) | (7,591) | (361) | ||||
R&D agreements | (164) | (10,188) | (18,400) | ||||
Finance Income | 152 | 1,946 | 1,916 | ||||
Total income (expense) | (77,136) | (51,209) | (16,528) | ||||
Key management personnel | |||||||
Details of balances with related parties | |||||||
Debts | (6,164) | (6,662) | |||||
Group transactions with related parties | |||||||
Remuneration | (13,672) | (10,287) | (9,447) | ||||
Total income (expense) | (13,672) | (10,287) | (9,447) | ||||
Other related parties | |||||||
Details of balances with related parties | |||||||
Trade payables | (9,187) | (8,473) | |||||
Group transactions with related parties | |||||||
Other service expenses | (7,100) | (5,325) | (6,938) | ||||
Operating lease expense | (5,426) | (5,281) | (4,900) | ||||
Purchase of Fixed Assets | (276,457) | ||||||
Sale of Fixed Assets | 12,000 | ||||||
Total income (expense) | (12,526) | (10,606) | (276,295) | ||||
Board of directors of the Company | |||||||
Details of balances with related parties | |||||||
Trade payables | (463) | ||||||
Group transactions with related parties | |||||||
Other service expenses | (939) | (905) | (845) | ||||
Remuneration | (5,755) | (3,668) | (3,443) | ||||
Total income (expense) | € (6,694) | € (4,573) | € (4,288) |
Events after the Reporting P180
Events after the Reporting Period (Details) - Business combination € in Millions, item in Millions, $ in Millions | Mar. 20, 2018EUR (€)m²employeeitemCenterl | Jan. 26, 2018USD ($) |
Goetech, LLC. ("MedKeeper") | ||
Events after the Reporting Period | ||
Proportion of ownership interest in subsidiary | 51.00% | |
Option to purchase remaining voting rights (as a percent) | 49.00% | |
Option to purchase remaining voting rights, term (in years) | 3 years | |
Goetech, LLC. ("MedKeeper") | Grifols Shared Services North America, Inc. (formerly Grifols Inc.) | ||
Events after the Reporting Period | ||
Share capital increase | $ | $ 98 | |
Haema AG | Forecast | ||
Events after the Reporting Period | ||
Proportion of ownership interest in subsidiary | 100.00% | |
Consideration transferred | € | € 220 | |
Number of Plasma Collection Centers | 35 | |
Number of plasma collection centers under construction | 3 | |
Area of headquarters (in square metre) | m² | 24,000 | |
Number of people in operations | employee | 1,100 | |
Plasma collected in preceding financial year (in litres) | l | 800,000 | |
Number of plasma donations collected | item | 1 |
Appendix I - Information on Gro
Appendix I - Information on Group Companies, Associates and others(Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Diagnostic Grifols, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.998% | ||
Proportion of indirect ownership interest | 100.00% | 100.00% | 0.002% |
Instituto Grifols, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.998% | 99.998% | 99.998% |
Proportion of indirect ownership interest | 0.002% | 0.002% | 0.002% |
Grifols Worldwide Operations Spain, S.A (formerly Logister, S.A.) | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Laboratorios Grifols, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.999% | 99.999% | 99.999% |
Proportion of indirect ownership interest | 0.001% | 0.001% | 0.001% |
Biomat, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.90% | 99.90% | 99.90% |
Proportion of indirect ownership interest | 0.10% | 0.10% | 0.10% |
Grifols Engineering, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.95% | 99.95% | 99.95% |
Proportion of indirect ownership interest | 0.05% | 0.05% | 0.05% |
Biomat USA, Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Biologicals LLC | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Australia Pty Ltd. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Medion Grifols Diagnostic AG | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 80.00% | ||
Proportion of indirect ownership interest | 100.00% | 100.00% | |
Grifols Therapeutics LLC | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Talecris Plasma Resources, Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
GRI-CEI, S/A Produtos para transfusao (merged with Grifols Brasil, Lda. in 2016) | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 60.00% | ||
Grifols Worldwide Operations Limited | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Progenika Biopharma, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 56.15% | ||
Proportion of indirect ownership interest | 90.23% | 89.25% | |
Progenika Latina, S.A. de CV | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 89.25% | 56.15% | |
Progenika Inc. (merged with Grifols Diagnostic Solutions Inc. in 2017) | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 89.25% | 56.15% | |
Brainco Biopharma, S.L. (merged with Progenika Biopharma, S.A in 2016) | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 28.423% | ||
Abyntek Biopharma, S.L. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 80.37% | 45.129% | |
Asociacion I+D Progenika | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 90.23% | 89.25% | 55.336% |
Grifols Diagnostics Solutions Inc (formerly G-C Diagnostics Corp.) | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Worldwide Operations USA Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Asia Pacific Pte, Ltd | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Movaco, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.999% | 99.999% | 99.999% |
Proportion of indirect ownership interest | 0.001% | 0.001% | 0.001% |
Grifols Portugal Productos Farmacuticos e Hospitalares, Lda. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 0.01% | 0.01% | 0.01% |
Proportion of indirect ownership interest | 99.99% | 99.99% | 99.99% |
Grifols Chile, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.00% | 99.00% | 99.00% |
Grifols USA, LLC. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Argentina, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 95.01% | 95.01% | 95.01% |
Proportion of indirect ownership interest | 4.99% | 4.99% | 4.99% |
Grifols s.r.o. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols (Thailand) Ltd | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 48.00% | 48.00% | 48.00% |
Grifols Malaysia Sdn Bhd | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 30.00% | 30.00% | 30.00% |
Grifols International, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.998% | 99.998% | 99.998% |
Proportion of indirect ownership interest | 0.002% | 0.002% | 0.002% |
Grifols Italia S.p.A | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols UK Ltd. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Brasil, Lda. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols France, S.A.R.L. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.99% | 99.99% | 99.99% |
Proportion of indirect ownership interest | 0.01% | 0.01% | 0.01% |
Grifols Polska Sp.z.o.o. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Logstica Grifols, S.A. de C.V. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.99% | 99.99% | 99.99% |
Proportion of indirect ownership interest | 0.01% | 0.01% | 0.01% |
Grifols Mexico, S.A. de C.V. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.98% | 99.98% | 99.98% |
Proportion of indirect ownership interest | 0.02% | 0.02% | 0.02% |
Medion Diagnostics GmbH | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 80.00% |
Grifols Nordic, AB | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Colombia, Ltda | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.00% | 99.00% | 99.00% |
Proportion of indirect ownership interest | 1.00% | 1.00% | 1.00% |
Grifols Deutschland GmbH | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Canada, Ltd. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Pharmaceutical Technology (Shanghai) Co., Ltd. (formerly Grifols Pharmaceutical Consulting (Shanghai) Co., Ltd.) | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Switzerland AG | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols (H.K.), Limited | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Japan K.K. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Grifols India Healthcare Private Ltd | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.99% | 99.99% | 99.99% |
Proportion of indirect ownership interest | 0.01% | 0.01% | 0.01% |
Grifols Diagnostics Equipment Taiwan Limited | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | |
Grifols Viajes, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 99.90% | 99.90% | 99.90% |
Proportion of indirect ownership interest | 0.10% | 0.10% | 0.10% |
Squadron Reinsurance Designated Activity Company (formerly Squadron Reinsurance Ltd.) | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | 100.00% |
Grifols Shared Services North America, Inc. (formerly Grifols Inc.) | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Gripdan Invest, S.L | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 100.00% | 100.00% | 100.00% |
Gri-Cel, S.A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 0.001% | 0.001% | 0.001% |
Proportion of indirect ownership interest | 99.999% | 99.999% | 99.999% |
Araclon Biotech, S.L. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 73.22% | 73.22% | 70.83% |
VCN Bioscience, S.L. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 81.34% | 81.34% | 68.01% |
Grifols Innovation and New Technologies Limited | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | |
PBS Acquisition Corp. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | 100.00% | |
Kiro Grifols S. L (formerly Kiro Robotics S.L) | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 90.00% | ||
Chiquito Acquisition Corp. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 100.00% | ||
Nanotherapix, S.L. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 51.00% | ||
Aradigm Corporation | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 35.00% | ||
Proportion of indirect ownership interest | 35.13% | 35.13% | |
TiGenix N.V. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 14.18% | 16.13% | 19.28% |
Mecwins, S.L. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 8.42% | 8.42% | 8.42% |
Kiro Grifols S.L (Spain) (formerly Kiro Robotics S.L) | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 50.00% | 50.00% | |
Alkahest, Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 47.58% | 47.58% | 47.58% |
Albajuna Therapeutics, S.L | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 30.00% | 30.00% | |
Interstate Blood Bank, Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 49.19% | 49.19% | |
Bio Blood Components Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 48.972% | 48.972% | |
Plasma Biological Services, LLC | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 48.90% | 48.90% | |
Singulex, Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 19.33% | 20.00% | |
Aigues Minerals de Vilajuiga S. A. | |||
Information on group companies associates and others | |||
Proportion of direct ownership interest | 50.00% | ||
Access Biologicals, LLC | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 49.00% | ||
Access Biologicals IC - DISC, Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 49.00% | ||
Access Cell Culture, LLC. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 49.00% | ||
Access Manufacturing, LLC. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 49.00% | ||
Access Plasma, LLC. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 49.00% | ||
GigaGen Inc. | |||
Information on group companies associates and others | |||
Proportion of indirect ownership interest | 43.96% |
Appendix II - Operating Segment
Appendix II - Operating Segments (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting | ||||
Revenues from external customers | € 4,318,073 | € 4,049,830 | € 3,934,563 | |
Profit /(loss) | 1,003,343 | 939,408 | 970,370 | |
Finance result | (287,734) | (233,589) | (271,840) | |
Share of profit / (losses) | (19,887) | 6,933 | (8,280) | |
Income tax expense | (34,408) | (168,209) | (158,809) | |
Profit/(loss) for the year | 661,314 | 544,543 | 531,441 | |
Investments in equity-accounted investees | 219,009 | 201,345 | 76,728 | € 54,296 |
Assets | 10,920,264 | 10,129,772 | 9,601,715 | |
Liabilities | 7,286,299 | 6,401,794 | 6,300,326 | |
Other Information: | ||||
Depreciation and amortisation expense | 215,490 | 201,869 | 189,755 | |
Additions for the year of property, plant and equipment and intangible assets | 340,473 | 322,102 | 576,814 | |
Operating Segments | ||||
Segment Reporting | ||||
Revenues from external customers | 4,318,073 | 4,049,830 | 3,934,563 | |
Total operating income | 4,318,073 | 4,049,830 | 3,934,563 | |
Profit /(loss) | 1,237,470 | 1,079,197 | 1,069,338 | |
Segment assets | 9,554,477 | 8,557,533 | 8,068,932 | |
Liabilities | 656,598 | 608,251 | 792,380 | |
Other Information: | ||||
Depreciation and amortisation expense | 206,966 | 194,361 | 182,401 | |
Expenses that do not require cash payments | 2,112 | (18,010) | 5,365 | |
Additions for the year of property, plant and equipment and intangible assets | 329,205 | 310,091 | 497,732 | |
Unallocated | ||||
Segment Reporting | ||||
Profit /(loss) | (234,127) | (139,789) | (98,968) | |
Assets | 1,146,778 | 1,370,894 | 1,456,055 | |
Liabilities | 6,629,701 | 5,793,543 | 5,507,946 | |
Other Information: | ||||
Depreciation and amortisation expense | 8,524 | 7,508 | 7,354 | |
Expenses that do not require cash payments | (58,752) | 4,608 | 4,794 | |
Additions for the year of property, plant and equipment and intangible assets | 11,268 | 12,011 | 79,082 | |
Intersegments | ||||
Segment Reporting | ||||
Revenues from external customers | (34,784) | (31,386) | (25,386) | |
Total operating income | (34,784) | (31,386) | (25,386) | |
Profit /(loss) | (12,305) | (1,316) | (305) | |
Segment assets | (22,196) | (11,964) | (10,240) | |
Bioscience | ||||
Segment Reporting | ||||
Share of profit / (losses) | (10,434) | (9,396) | ||
Investments in equity-accounted investees | 83,905 | 104,996 | ||
Bioscience | Operating Segments | ||||
Segment Reporting | ||||
Revenues from external customers | 3,429,785 | 3,195,424 | 3,032,111 | |
Total operating income | 3,429,785 | 3,195,424 | 3,032,111 | |
Profit /(loss) | 985,495 | 913,840 | 896,032 | |
Segment assets | 6,007,153 | 6,524,922 | 6,085,211 | |
Liabilities | 423,415 | 411,604 | 387,086 | |
Other Information: | ||||
Depreciation and amortisation expense | 157,478 | 152,821 | 137,870 | |
Expenses that do not require cash payments | 7,049 | 16,219 | 627 | |
Additions for the year of property, plant and equipment and intangible assets | 227,635 | 197,741 | 421,020 | |
Hospital | ||||
Segment Reporting | ||||
Share of profit / (losses) | 2,112 | (5,611) | ||
Investments in equity-accounted investees | 13,888 | |||
Hospital | Operating Segments | ||||
Segment Reporting | ||||
Revenues from external customers | 105,649 | 102,251 | 96,245 | |
Total operating income | 105,649 | 102,251 | 96,245 | |
Profit /(loss) | (9,766) | (8,765) | (4,299) | |
Segment assets | 145,477 | 86,590 | 91,877 | |
Liabilities | 13,560 | 8,415 | 3,159 | |
Other Information: | ||||
Depreciation and amortisation expense | 6,436 | 5,915 | 5,710 | |
Expenses that do not require cash payments | (514) | 306 | 108 | |
Additions for the year of property, plant and equipment and intangible assets | 10,429 | 9,193 | 7,972 | |
Diagnostic | ||||
Segment Reporting | ||||
Share of profit / (losses) | (9,335) | |||
Investments in equity-accounted investees | 29,322 | 43,330 | ||
Diagnostic | Operating Segments | ||||
Segment Reporting | ||||
Revenues from external customers | 732,369 | 691,701 | 716,838 | |
Total operating income | 732,369 | 691,701 | 716,838 | |
Profit /(loss) | 248,080 | 97,320 | 96,268 | |
Segment assets | 3,356,185 | 1,909,447 | 1,794,389 | |
Liabilities | 192,720 | 186,389 | 192,730 | |
Other Information: | ||||
Depreciation and amortisation expense | 40,815 | 32,180 | 31,875 | |
Expenses that do not require cash payments | (4,423) | (2,001) | 4,630 | |
Additions for the year of property, plant and equipment and intangible assets | 70,032 | 89,760 | 68,740 | |
Bio supplies | ||||
Segment Reporting | ||||
Revenues from external customers | 66,791 | 24,387 | 24,466 | |
Share of profit / (losses) | 1,830 | |||
Investments in equity-accounted investees | 44,220 | |||
Bio supplies | Operating Segments | ||||
Segment Reporting | ||||
Revenues from external customers | 66,791 | 57,239 | 24,466 | |
Total operating income | 66,791 | 57,239 | 24,466 | |
Profit /(loss) | 35,598 | 33,794 | 3,660 | |
Segment assets | 7,409 | 8,378 | 1,321 | |
Other Information: | ||||
Additions for the year of property, plant and equipment and intangible assets | 198 | 84 | ||
Others | ||||
Segment Reporting | ||||
Revenues from external customers | 18,263 | 34,602 | 90,289 | |
Share of profit / (losses) | (4,060) | 21,940 | (8,280) | |
Investments in equity-accounted investees | 61,562 | 39,131 | 76,728 | |
Others | Operating Segments | ||||
Segment Reporting | ||||
Revenues from external customers | 18,263 | 34,601 | 90,289 | |
Total operating income | 18,263 | 34,601 | 90,289 | |
Profit /(loss) | (9,632) | 44,324 | 77,982 | |
Segment assets | 60,449 | 40,160 | 106,374 | |
Liabilities | 26,903 | 1,843 | 209,405 | |
Other Information: | ||||
Depreciation and amortisation expense | 2,237 | 3,445 | € 6,946 | |
Expenses that do not require cash payments | (32,534) | |||
Additions for the year of property, plant and equipment and intangible assets | € 20,911 | € 13,313 |
Appendix II - Reporting by Geog
Appendix II - Reporting by Geographical Area (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of products and services | |||
Net revenue | € 4,318,073 | € 4,049,830 | € 3,934,563 |
Assets by geographical area | 10,920,264 | 10,129,772 | 9,601,715 |
Other Information: | |||
Additions for the year of property, plant and equipment and intangible assets | 340,473 | 322,102 | 576,814 |
Spain | |||
Disclosure of products and services | |||
Net revenue | 242,894 | 225,273 | 216,548 |
Assets by geographical area | 899,223 | 847,467 | 719,557 |
Other Information: | |||
Additions for the year of property, plant and equipment and intangible assets | 62,271 | 73,365 | 113,652 |
Rest of European Union | |||
Disclosure of products and services | |||
Net revenue | 444,089 | 426,223 | 456,919 |
Assets by geographical area | 2,397,200 | 2,467,295 | 2,407,178 |
Other Information: | |||
Additions for the year of property, plant and equipment and intangible assets | 80,910 | 39,603 | 51,943 |
USA and Canada | |||
Disclosure of products and services | |||
Net revenue | 2,896,505 | 2,707,579 | 2,604,315 |
Assets by geographical area | 7,341,174 | 6,535,420 | 6,176,548 |
Other Information: | |||
Additions for the year of property, plant and equipment and intangible assets | 188,557 | 190,358 | 400,065 |
Rest of the world | |||
Disclosure of products and services | |||
Net revenue | 734,585 | 690,755 | 656,781 |
Assets by geographical area | 282,667 | 279,590 | 298,432 |
Other Information: | |||
Additions for the year of property, plant and equipment and intangible assets | 8,735 | 18,776 | 11,154 |
Operating Segments | |||
Disclosure of products and services | |||
Net revenue | 4,318,073 | 4,049,830 | 3,934,563 |
Other Information: | |||
Additions for the year of property, plant and equipment and intangible assets | € 329,205 | € 310,091 | € 497,732 |
Appendix III - Changes in Other
Appendix III - Changes in Other Intangible Assets (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | € 1,195,302 | € 1,161,572 |
Additions | (49,076) | (2,459) |
Business combinations | 284,729 | |
Transfers | 529 | 1,361 |
Disposals | (96) | (221) |
Translation differences | (162,046) | 35,049 |
Intangible assets at end of the year | 1,269,342 | 1,195,302 |
Development costs | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 52,272 | |
Intangible assets at end of the year | 183,281 | 52,272 |
Currently marketed products | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 941,216 | 950,889 |
Business combinations | (38,216) | (38,441) |
Translation differences | (109,692) | 28,768 |
Intangible assets at end of the year | 793,308 | 941,216 |
Gross carrying amount | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 1,682,673 | 1,577,005 |
Additions | 80,126 | 58,514 |
Business combinations | 284,729 | |
Transfers | 529 | 1,460 |
Disposals | (207) | (1,150) |
Translation differences | (206,643) | 46,844 |
Intangible assets at end of the year | 1,841,207 | 1,682,673 |
Gross carrying amount | Development costs | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 142,693 | 112,688 |
Additions | 43,152 | 29,126 |
Business combinations | 142,529 | |
Disposals | (81) | (79) |
Translation differences | (16,599) | 958 |
Intangible assets at end of the year | 311,694 | 142,693 |
Gross carrying amount | Concessions, patents, licenses brands & similar | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 60,471 | 59,249 |
Business combinations | 142,174 | |
Translation differences | (19,760) | 1,222 |
Intangible assets at end of the year | 182,885 | 60,471 |
Gross carrying amount | Computer software | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 168,623 | 144,976 |
Additions | 19,626 | 18,919 |
Business combinations | 26 | |
Transfers | 529 | 1,460 |
Disposals | (126) | (420) |
Translation differences | (13,733) | 3,688 |
Intangible assets at end of the year | 174,945 | 168,623 |
Gross carrying amount | Currently marketed products | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 1,162,204 | 1,126,024 |
Translation differences | (137,828) | 36,180 |
Intangible assets at end of the year | 1,024,376 | 1,162,204 |
Gross carrying amount | Other Intangible assets | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 148,682 | 134,068 |
Additions | 17,348 | 10,469 |
Disposals | (651) | |
Translation differences | (18,723) | 4,796 |
Intangible assets at end of the year | 147,307 | 148,682 |
Accumulated depreciation and amortisation | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | (487,371) | (415,467) |
Additions | (64,468) | (60,973) |
Transfers | (99) | |
Disposals | 111 | 963 |
Translation differences | 43,243 | (11,795) |
Intangible assets at end of the year | (508,485) | (487,371) |
Accumulated depreciation and amortisation | Development costs | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | (72,073) | (67,551) |
Additions | (5,834) | (4,473) |
Translation differences | (1,442) | (49) |
Intangible assets at end of the year | (79,349) | (72,073) |
Accumulated depreciation and amortisation | Concessions, patents, licenses brands & similar | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | (24,994) | (23,957) |
Additions | (6,004) | (806) |
Translation differences | 1,215 | (231) |
Intangible assets at end of the year | (29,783) | (24,994) |
Accumulated depreciation and amortisation | Computer software | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | (99,927) | (83,197) |
Additions | (13,549) | (15,136) |
Transfers | (99) | |
Disposals | 111 | 419 |
Translation differences | 7,046 | (1,914) |
Intangible assets at end of the year | (106,319) | (99,927) |
Accumulated depreciation and amortisation | Currently marketed products | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | (220,988) | (175,135) |
Additions | (38,216) | (38,441) |
Translation differences | 28,136 | (7,412) |
Intangible assets at end of the year | (231,068) | (220,988) |
Accumulated depreciation and amortisation | Other Intangible assets | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | (69,389) | (65,627) |
Additions | (865) | (2,117) |
Disposals | 544 | |
Translation differences | 8,288 | (2,189) |
Intangible assets at end of the year | (61,966) | (69,389) |
Accumulated impairment | Other Intangible assets | ||
Changes in Other Intangible Assets | ||
Intangible assets at beginning of the year | 34 | |
Additions | (64,734) | |
Disposals | € (34) | |
Translation differences | 1,354 | |
Intangible assets at end of the year | € (63,380) |
Appendix IV - Movement in Prope
Appendix IV - Movement in Property, Plant and Equipment (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | € 1,809,852 | € 1,644,402 |
Additions | 109,583 | 122,839 |
Business combination | 29,251 | |
Transfers | (529) | (1,361) |
Disposals | (2,218) | (6,512) |
Translation differences | (185,886) | 50,484 |
Property, plant and equipment at end of period | 1,760,053 | 1,809,852 |
Gross carrying amount | ||
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | 2,618,696 | 2,308,116 |
Additions | 260,347 | 263,588 |
Business combination | 29,251 | |
Transfers | (563) | (1,508) |
Disposals | (10,921) | (20,295) |
Translation differences | (256,478) | 68,795 |
Property, plant and equipment at end of period | 2,640,332 | 2,618,696 |
Gross carrying amount | Land and buildings | ||
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | 687,856 | 613,476 |
Additions | 28,503 | 12,993 |
Business combination | 19,628 | |
Transfers | 12,694 | 44,060 |
Disposals | (823) | (780) |
Translation differences | (74,324) | 18,107 |
Property, plant and equipment at end of period | 673,534 | 687,856 |
Gross carrying amount | Plant and machinery | ||
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | 1,655,837 | 1,431,030 |
Additions | 82,234 | 87,536 |
Business combination | 9,068 | |
Transfers | 123,816 | 116,724 |
Disposals | (10,098) | (19,515) |
Translation differences | (156,178) | 40,062 |
Property, plant and equipment at end of period | 1,704,679 | 1,655,837 |
Gross carrying amount | Under construction | ||
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | 275,003 | 263,610 |
Additions | 149,610 | 163,059 |
Business combination | 555 | |
Transfers | (137,073) | (162,292) |
Translation differences | (25,976) | 10,626 |
Property, plant and equipment at end of period | 262,119 | 275,003 |
Accumulated depreciation and amortisation | ||
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | (805,644) | (660,426) |
Additions | (151,022) | (140,896) |
Transfers | 34 | 147 |
Disposals | 8,703 | 13,783 |
Translation differences | 70,382 | (18,252) |
Property, plant and equipment at end of period | (877,547) | (805,644) |
Accumulated depreciation and amortisation | Buildings | ||
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | (59,376) | (44,057) |
Additions | (14,708) | (13,777) |
Transfers | (2) | |
Disposals | 710 | 178 |
Translation differences | 6,609 | (1,718) |
Property, plant and equipment at end of period | (66,765) | (59,376) |
Accumulated depreciation and amortisation | Plant and machinery | ||
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | (746,268) | (616,369) |
Additions | (136,314) | (127,119) |
Transfers | 34 | 149 |
Disposals | 7,993 | 13,605 |
Translation differences | 63,773 | (16,534) |
Property, plant and equipment at end of period | (810,782) | (746,268) |
Accumulated impairment | ||
Movement in Property, Plant and Equipment | ||
Property, plant and equipment at beginning of period | (3,200) | (3,288) |
Additions | 258 | 147 |
Translation differences | 210 | (59) |
Property, plant and equipment at end of period | € (2,732) | € (3,200) |
Appendix V - Statement of Liqui
Appendix V - Statement of Liquidity for Distribution of Interim Dividend (Details) - EUR (€) € in Thousands | 12 Months Ended | 13 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 07, 2017 | Dec. 07, 2016 | |
Appendix V | |||||
Projected profits net of taxes | € 273,472 | € 319,133 | |||
Estimated profits distributable | 273,472 | 319,133 | |||
Interim dividend distributed | 122,986 | 122,908 | |||
Cash balances | 231,058 | € 424,711 | € 231,058 | € 5,521 | |
Projected amounts collected | 475,209 | 497,058 | |||
Projected payments, including interim dividend | 468,117 | 471,686 | |||
Projected cash balances | € 7,092 | € 7,092 | € 30,893 |