SECURITIES AND EXCHANGE COMMISSION
 Washington D.C. 20549
 FORM 20-F
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF
1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the transition period from ______________ to _____________
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934Date of event requiring this shell company report .............
 Commission file number:
 GRIFOLS, S.A.
  Spain
 
   Title of each class
    
    Name of each exchange on which registeredAmerican Depositary Shares
evidenced by American Depositary
Receipts, each American
Depositary Share representing
one-half of one non-voting
(Class B) ordinary share of
Grifols, S.A.
 None
 None
   o þ
  o þ
  o þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
  U.S. GAAP o
    
    International Financial Reporting Standards as issued by the International Accounting Standards Board þ
    
    Other o
  o o
  o þ




---



##### 



EXPLANATORY NOTE




---



##### 



Report of Independent Registered Public Accounting Firm




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 
 Consolidated Balance Sheets
at 31 December 2010 and 2009
 Assets
    
    31/12/10
    
    
    31/12/09(Expressed in thousands of Euros)Non-current assetsIntangible assetsGoodwill (note 7)
    
    
    189,448
    
    
    
    174,000Other intangible assets (note 8)
    
    
    78,299
    
    
    
    69,385Total intangible assets
    
    
    267,747
    
    
    
    243,385Property, plant and equipment (note 9)
    
    
    434,131
    
    
    
    371,705Investments in equity accounted investees (note 10)
    
    
    598
    
    
    
    383Non-current financial assets (note 11)
    
    
    7,535
    
    
    
    3,731Deferred tax assets (note 29)
    
    
    34,889
    
    
    
    33,395Total non-current assets
    
    
    744,900
    
    
    
    652,599Current assetsInventories (note 12)
    
    
    527,865
    
    
    
    484,462Trade and other receivablesTrade receivables
    
    
    224,355
    
    
    
    207,840Other receivables
    
    
    44,032
    
    
    
    39,540Current income tax assets
    
    
    14,607
    
    
    
    7,802Trade and other receivables (note 13)
    
    
    282,994
    
    
    
    255,182Other current financial assets (note 14)
    
    
    12,946
    
    
    
    8,217Other current assets (note 15)
    
    
    80,628
    
    
    
    7,345Cash and cash equivalents (note 16)
    
    
    239,649
    
    
    
    249,372Total current assets
    
    
    1,144,082
    
    
    
    1,004,578Total assets
    
    
    1,888,982
    
    
    
    1,657,177
  1




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Consolidated Balance Sheets
at 31 December 2010 and 2009
 Equity and liabilities
    
    31/12/10
    
    
    31/12/09(Expressed in thousands of Euros)EquityShare capital
    
    
    106,532
    
    
    
    106,532Share premium
    
    
    121,802
    
    
    
    121,802Reserves
    
    
    403,604
    
    
    
    314,903Own shares
    
    
    (1,927
    )
    
    
    (677
    )Interim dividend
    
    
    0
    
    
    
    (31,960
    )Profit for the year attributable to the Parent
    
    
    115,513
    
    
    
    147,972Total equity
    
    
    745,524
    
    
    
    658,572Cash flow hedges
    
    
    (1,751
    )
    
    
    (1,948
    )Translation differences
    
    
    (50,733
    )
    
    
    (90,253
    )Accumulated other comprehensive income
    
    
    (52,484
    )
    
    
    (92,201
    )Equity attributable to the Parent (note 17)
    
    
    693,040
    
    
    
    566,371Non-controlling interests(note 19)
    
    
    14,350
    
    
    
    12,157Total equity
    
    
    707,390
    
    
    
    578,528LiabilitiesNon-current liabilitiesGrants (note 20)
    
    
    2,088
    
    
    
    2,311Provisions (note 21)
    
    
    1,378
    
    
    
    1,232Non-current financial liabilitiesLoans and
borrowings, bonds and other marketable securities
    
    
    665,385
    
    
    
    703,186Other financial liabilities
    
    
    10,474
    
    
    
    12,552Total non-current financial liabilities (note 22)
    
    
    675,859
    
    
    
    715,738Deferred tax liabilities (note 29)
    
    
    79,141
    
    
    
    60,325Total non-current liabilities
    
    
    758,466
    
    
    
    779,606Current liabilitiesProvisions (note 21)
    
    
    4,365
    
    
    
    4,702Current financial liabilitiesLoans and
borrowings, bonds and other marketable securities
    
    
    191,635
    
    
    
    113,991Other financial liabilities
    
    
    18,236
    
    
    
    12,230Total current financial liabilities (note 22)
    
    
    209,871
    
    
    
    126,221Debts with associates (note 33)
    
    
    1,162
    
    
    
    0Trade and other payablesSuppliers
    
    
    160,678
    
    
    
    120,909Other payables
    
    
    11,928
    
    
    
    17,832Current income tax liabilities
    
    
    4,172
    
    
    
    3,258Total trade and other payables (note 23)
    
    
    176,778
    
    
    
    141,999Other current liabilities (note 24)
    
    
    30,950
    
    
    
    26,121Total current liabilities
    
    
    423,126
    
    
    
    299,043Total liabilities
    
    
    1,181,592
    
    
    
    1,078,649Total equity and liabilities
    
    
    1,888,982
    
    
    
    1,657,177
  2




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 
 Consolidated Income Statements
for the years ended 31 December 2010, 2009 and 2008
 31/12/10
    
    
    31/12/09
    
    
    31/12/08(Expressed in thousands of Euros)Revenues (note 25)
    
    
    990,730
    
    
    
    913,186
    
    
    
    814,311Changes in inventories of finished goods and work in
progress (note 12)
    
    
    45,749
    
    
    
    73,093
    
    
    
    31,058Self-constructed non-current assets (notes 8 and 9)
    
    
    33,513
    
    
    
    41,142
    
    
    
    25,794Supplies (note 12)
    
    
    (306,859
    )
    
    
    (286,274
    )
    
    
    (206,738
    )Other operating income (note 27)
    
    
    1,196
    
    
    
    1,443
    
    
    
    1,289Personnel expenses (note 26)
    
    
    (289,008
    )
    
    
    (273,168
    )
    
    
    (238,159
    )Other operating expenses (note 27)
    
    
    (220,218
    )
    
    
    (203,381
    )
    
    
    (192,288
    )Amortisation and depreciation (notes 8 and 9)
    
    
    (45,776
    )
    
    
    (39,554
    )
    
    
    (33,256
    )Non-financial and other capital grants (note 20)
    
    
    728
    
    
    
    1,188
    
    
    
    2,941Impairment and net losses on disposal of fixed assets
    
    
    (372
    )
    
    
    (1,147
    )
    
    
    (1,991
    )Results from operating activities
    
    
    209,683
    
    
    
    226,528
    
    
    
    202,961Finance income
    
    
    4,526
    
    
    
    7,067
    
    
    
    2,682Finance expenses
    
    
    (49,660
    )
    
    
    (27,087
    )
    
    
    (29,305
    )Change in fair value of financial instruments (note 32)
    
    
    (7,593
    )
    
    
    (587
    )
    
    
    (1,268
    )Gains/(losses) on disposal of financial instruments
    
    
    91
    
    
    
    (245
    )
    
    
    Exchange gains/(losses)
    
    
    1,616
    
    
    
    (1,733
    )
    
    
    (2,825
    )Net finance expense(note 28)
    
    
    (51,020
    )
    
    
    (22,585
    )
    
    
    (30,716
    )Share of profit / (loss) of equity accounted
investees (note 10)
    
    
    (879
    )
    
    
    51
    
    
    
    24Profit before income tax from continuing operations
    
    
    157,784
    
    
    
    203,994
    
    
    
    172,269Income tax expense (note 29)
    
    
    (42,517
    )
    
    
    (56,424
    )
    
    
    (50,153
    )Profit after income tax from continuing operations
    
    
    115,267
    
    
    
    147,570
    
    
    
    122,116Consolidated profit for the year
    
    
    115,267
    
    
    
    147,570
    
    
    
    122,116Profit attributable to equity holders of the Parent
    
    
    115,513
    
    
    
    147,972
    
    
    
    121,728Profit / (loss) attributable to non-controlling
interests (note 19)
    
    
    (246
    )
    
    
    (402
    )
    
    
    388Basic earnings per share (Euros) (note 18)
    
    
    0.54
    
    
    
    0.71
    
    
    
    0.58Diluted earnings per share (Euros) (note 18)
    
    
    0.54
    
    
    
    0.71
    
    
    
    0.58
  3




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 
 Consolidated Statements of Comprehensive Income
for the years ended 31 December 2010, 2009 and 2008
 31/12/10
    
    
    31/12/09(Expressed in thousands of Euros)Consolidated profit for the year
    
    
    115,267
    
    
    
    147,570Income and expenses generated during the yearMeasurement of financial instruments (note 11)
    
    
    0
    
    
    
    (14
    )Available-for-sale financial assets
    
    
    0
    
    
    
    (18
    )Tax effect
    
    
    0
    
    
    
    4Cash flow hedges (note 17 (f))
    
    
    0
    
    
    
    (1,998
    )Cash flow hedges
    
    
    0
    
    
    
    (3,275
    )Tax effect
    
    
    0
    
    
    
    1,277Translation differences
    
    
    42,225
    
    
    
    (4,145
    )Income and expenses generated during the year
    
    
    42,225
    
    
    
    (6,157
    )Income and expense recognised in the income statement:Measurement of financial instruments (note 11)
    
    
    0
    
    
    
    172Available-for-sale financial assets
    
    
    0
    
    
    
    245Tax effect
    
    
    0
    
    
    
    (73
    )Cash flow hedges (note 17 (f))
    
    
    197
    
    
    
    50Cash flow hedges
    
    
    324
    
    
    
    80Tax effect
    
    
    (127
    )
    
    
    (30
    )Income and expense recognised in the income statement:
    
    
    197
    
    
    
    222Total comprehensive income for the year
    
    
    157,689
    
    
    
    141,635Total comprehensive income attributable to the Parent
    
    
    155,230
    
    
    
    140,386Total comprehensive income attributable to non-controlling interests
    
    
    2,459
    
    
    
    1,249Total comprehensive income for the year
    
    
    157,689
    
    
    
    141,635
  4




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 
 Consolidated Statements of Cash Flows
for the years ended 31 December 2010, 2009 and 2008
 31/12/10
    
    
    31/12/09
    
    
    31/12/08(Expressed in thousands of Euros)Cash flows from/(used in) operating activitiesProfit before income tax
    
    
    157,784
    
    
    
    203,994
    
    
    
    172,269Adjustments for:
    
    
    92,351
    
    
    
    61,800
    
    
    
    66,034Amortisation and depreciation (notes 8 and 9)
    
    
    45,776
    
    
    
    39,554
    
    
    
    33,256Other adjustments:
    
    
    46,575
    
    
    
    22,246
    
    
    
    32,778(Profit) /losses on equity accounted investments (note 10)
    
    
    879
    
    
    
    (51
    )
    
    
    (24
    )Exchange differences
    
    
    (1,616
    )
    
    
    1,733
    
    
    
    2,825Impairment of assets and net provision charges
    
    
    913
    
    
    
    53
    
    
    
    1,994(Profits) / losses on disposal of fixed assets
    
    
    (276
    )
    
    
    1,147
    
    
    
    2,001Government grants taken to income (note 20)
    
    
    (728
    )
    
    
    (1,188
    )
    
    
    (2,943
    )Net finance expense
    
    
    47,442
    
    
    
    17,551
    
    
    
    27,891Other adjustments
    
    
    (39
    )
    
    
    3,001
    
    
    
    1,034Change in operating assets and liabilities
    
    
    (78,767
    )
    
    
    (104,127
    )
    
    
    (86,550
    )Change in inventories
    
    
    (18,306
    )
    
    
    (113,104
    )
    
    
    (98,520
    )Change in trade and other receivables
    
    
    (23,546
    )
    
    
    (12,549
    )
    
    
    (7,951
    )Change in current financial assets and other current assets
    
    
    (73,022
    )
    
    
    (1,287
    )
    
    
    405Change in current trade and other payables
    
    
    36,107
    
    
    
    22,813
    
    
    
    19,516Other cash flows used in operating activities
    
    
    (67,116
    )
    
    
    (73,487
    )
    
    
    (77,310
    )Interest paid
    
    
    (40,129
    )
    
    
    (14,719
    )
    
    
    (25,972
    )Interest received
    
    
    5,436
    
    
    
    2,509
    
    
    
    2,213Income tax paid
    
    
    (32,423
    )
    
    
    (61,277
    )
    
    
    (53,551
    )Net cash from operating activities
    
    
    104,252
    
    
    
    88,180
    
    
    
    74,443Cash flows from/(used in) investing activitiesPayments for investments
    
    
    (108,588
    )
    
    
    (136,626
    )
    
    
    (130,923
    )Group companies and business units
    
    
    (1,474
    )
    
    
    (15,385
    )
    
    
    (632
    )Property, plant and equipment and intangible assets
    
    
    (103,402
    )
    
    
    (118,770
    )
    
    
    (129,568
    )Property, plant and equipment
    
    
    (86,800
    )
    
    
    (103,415
    )
    
    
    (119,824
    )Intangible assets
    
    
    (16,602
    )
    
    
    (15,355
    )
    
    
    (9,744
    )Other financial assets
    
    
    (3,712
    )
    
    
    (2,471
    )
    
    
    (723
    )Proceeds from the sale of investments
    
    
    4,532
    
    
    
    673
    
    
    
    157Property, plant and equipment
    
    
    3,911
    
    
    
    673
    
    
    
    157Associates (note 2 ( c))
    
    
    621
    
    
    
    0
    
    
    
    0Net cash used in investing activities
    
    
    (104,056
    )
    
    
    (135,953
    )
    
    
    (130,766
    )Cash flows from/(used in) financing activitiesProceeds from and payments for equity instruments
    
    
    (1,250
    )
    
    
    26,655
    
    
    
    (4,212
    )Issue
    
    
    0
    
    
    
    (76
    )
    
    
    0Acquisition of own shares (note 17 (d))
    
    
    (1,250
    )
    
    
    (25,186
    )
    
    
    (4,880
    )Disposal of treasury shares
    
    
    0
    
    
    
    51,917
    
    
    
    668Proceeds from and payments for financial liability instruments
    
    
    (1,066
    )
    
    
    344,413
    
    
    
    96,349Issue
    
    
    118,238
    
    
    
    525,078
    
    
    
    394,109Redemption and repayment
    
    
    (119,304
    )
    
    
    (180,665
    )
    
    
    (297,760
    )Dividends and interest on other equity instruments paid
    
    
    (27,282
    )
    
    
    (80,913
    )
    
    
    (34,792
    )Other cash flows from financing activities
    
    
    323
    
    
    
    741
    
    
    
    0Other amounts received from financing activities
    
    
    323
    
    
    
    741
    
    
    
    0Net cash from/(used in) financing activities
    
    
    (29,275
    )
    
    
    290,896
    
    
    
    57,345Effect of exchange rate fluctuations on cash
    
    
    19,356
    
    
    
    (119
    )
    
    
    (344
    )Net increase / (decrease) in cash and cash equivalents
    
    
    (9,723
    )
    
    
    243,004
    
    
    
    678Cash and cash equivalents at beginning of the year
    
    
    249,372
    
    
    
    6,368
    
    
    
    5,690Cash and cash equivalents at end of year
    
    
    239,649
    
    
    
    249,372
    
    
    
    6,368
  5




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 
 Statement of Changes in Consolidated Equity
for the years ended 31 December 2010, 2009 and 2008
 Attributable to equity holders of the ParentAccumulated other comprehensive incomeAvailable-for
    
    
    EquityProfit attributable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    sale
    
    
    attributableShare
    
    
    Share
    
    
    
    
    
    
    to
    
    
    Interim
    
    
    Own
    
    
    Translation
    
    
    Cash flow
    
    
    financial
    
    
    to
    
    
    Non-controllingcapital
    
    
    premium
    
    
    Reserves *
    
    
    Parent
    
    
    dividend
    
    
    Shares
    
    
    differences
    
    
    hedges
    
    
    assets
    
    
    Parent
    
    
    interests
    
    
    EquityBalances at 31 December 2007
    
    
    106,532
    
    
    
    131,832
    
    
    
    184,608
    
    
    
    87,774
    
    
    
    0
    
    
    
    (28,893
    )
    
    
    (98,516
    )
    
    
    0
    
    
    
    (152
    )
    
    
    383,185
    
    
    
    981
    
    
    
    384,166Translation differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,059
    
    
    
    
    
    
    
    
    
    
    
    14,059
    
    
    
    (104
    )
    
    
    13,955Available-for-sale financial assets Gains/(losses)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6
    )
    
    
    (6
    )
    
    
    
    
    
    
    (6
    )Other comprehensive income for the year
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    14,059
    
    
    
    0
    
    
    
    (6
    )
    
    
    14,053
    
    
    
    (104
    )
    
    
    13,949Profit for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    121,728
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    121,728
    
    
    
    388
    
    
    
    122,116Total comprehensive income for the year
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    121,728
    
    
    
    0
    
    
    
    0
    
    
    
    14,059
    
    
    
    0
    
    
    
    (6
    )
    
    
    135,781
    
    
    
    284
    
    
    
    136,065Net movement in own shares
    
    
    
    
    
    
    
    
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    (4,194
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,170
    )
    
    
    
    
    
    
    (4,170
    )Other changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0
    
    
    
    (15
    )
    
    
    (15
    )Distribution of 2007 profitReserves
    
    
    
    
    
    
    
    
    
    
    63,037
    
    
    
    (63,037
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0
    
    
    
    
    
    
    
    0Dividends
    
    
    
    
    
    
    (10,030
    )
    
    
    
    
    
    
    (24,737
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (34,767
    )
    
    
    
    
    
    
    (34,767
    )Transaction with owners of the Company
    
    
    0
    
    
    
    (10,030
    )
    
    
    63,061
    
    
    
    (87,774
    )
    
    
    0
    
    
    
    (4,194
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (38,937
    )
    
    
    (15
    )
    
    
    (38,952
    )Balances at 31 December 2008
    
    
    106,532
    
    
    
    121,802
    
    
    
    247,669
    
    
    
    121,728
    
    
    
    0
    
    
    
    (33,087
    )
    
    
    (84,457
    )
    
    
    0
    
    
    
    (158
    )
    
    
    480,029
    
    
    
    1,250
    
    
    
    481,279Translation differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,796
    )
    
    
    
    
    
    
    
    
    
    
    (5,796
    )
    
    
    1,651
    
    
    
    (4,145
    )Cash flow hedges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,948
    )
    
    
    
    
    
    
    (1,948
    )
    
    
    
    
    
    
    (1,948
    )Gains/(Losses) on available-for-sale financial assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    158
    
    
    
    158
    
    
    
    
    
    
    
    158Other comprehensive income for the year
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (5,796
    )
    
    
    (1,948
    )
    
    
    158
    
    
    
    (7,586
    )
    
    
    1,651
    
    
    
    (5,935
    )Profit/(loss) for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    147,972
    
    
    
    0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    147,972
    
    
    
    (402
    )
    
    
    147,570Total comprehensive income for the year
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    147,972
    
    
    
    0
    
    
    
    0
    
    
    
    (5,796
    )
    
    
    (1,948
    )
    
    
    158
    
    
    
    140,386
    
    
    
    1,249
    
    
    
    141,635Net movement in own shares
    
    
    
    
    
    
    
    
    
    
    (5,679
    )
    
    
    
    
    
    
    
    
    
    
    32,410
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    26,731
    
    
    
    
    
    
    
    26,731Other changes
    
    
    
    
    
    
    
    
    
    
    (124
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (124
    )
    
    
    44
    
    
    
    (80
    )Business combinations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0
    
    
    
    9,876
    
    
    
    9,876Distribution of 2008 profitReserves
    
    
    
    
    
    
    
    
    
    
    73,037
    
    
    
    (73,037
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0
    
    
    
    
    
    
    
    0Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (48,691
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (48,691
    )
    
    
    (54
    )
    
    
    (48,745
    )Interim dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (31,960
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (31,960
    )
    
    
    (208
    )
    
    
    (32,168
    )Transaction with owners of the Company
    
    
    0
    
    
    
    0
    
    
    
    67,235
    
    
    
    (121,728
    )
    
    
    (31,960
    )
    
    
    32,410
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (54,044
    )
    
    
    9,658
    
    
    
    (44,386
    )Balance at 31 December 2009
    
    
    106,532
    
    
    
    121,802
    
    
    
    314,903
    
    
    
    147,972
    
    
    
    (31,960
    )
    
    
    (677
    )
    
    
    (90,253
    )
    
    
    (1,948
    )
    
    
    0
    
    
    
    566,371
    
    
    
    12,157
    
    
    
    578,528Translation differences
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    39,520
    
    
    
    0
    
    
    
    0
    
    
    
    39,520
    
    
    
    2,705
    
    
    
    42,225Cash flow hedges
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    197
    
    
    
    0
    
    
    
    197
    
    
    
    0
    
    
    
    197Other comprehensive income for the year
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    39,520
    
    
    
    197
    
    
    
    0
    
    
    
    39,717
    
    
    
    2,705
    
    
    
    42,422Profit/(loss) for the year
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    115,513
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    115,513
    
    
    
    (246
    )
    
    
    115,267Total comprehensive income for the year
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    115,513
    
    
    
    0
    
    
    
    0
    
    
    
    39,520
    
    
    
    197
    
    
    
    0
    
    
    
    155,230
    
    
    
    2,459
    
    
    
    157,689Net movement in own shares
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (1,250
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (1,250
    )
    
    
    
    
    
    
    (1,250
    )Other changes
    
    
    0
    
    
    
    0
    
    
    
    (82
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (82
    )
    
    
    (213
    )
    
    
    (295
    )Distribution of 2009 profitReserves
    
    
    0
    
    
    
    0
    
    
    
    88,783
    
    
    
    (88,783
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    
    
    
    
    0Dividends
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (27,229
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (27,229
    )
    
    
    (53
    )
    
    
    (27,282
    )Interim dividend
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (31,960
    )
    
    
    31,960
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    
    
    
    
    0Transaction with owners of the Company
    
    
    0
    
    
    
    0
    
    
    
    88,701
    
    
    
    (147,972
    )
    
    
    31,960
    
    
    
    (1,250
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (28,561
    )
    
    
    (266
    )
    
    
    (28,827
    )Balance at 31 December 2010
    
    
    106,532
    
    
    
    121,802
    
    
    
    403,604
    
    
    
    115,513
    
    
    
    0
    
    
    
    (1,927
    )
    
    
    (50,733
    )
    
    
    (1,751
    )
    
    
    0
    
    
    
    693,040
    
    
    
    14,350
    
    
    
    707,390
   6




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 
 Notes to the Consolidated Financial Statements
 
 (1) Nature, Principal Activities and Subsidiaries
 (a) Grifols, S.A.
        1




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 (b) Subsidiaries
  - Industrial area
  Diagnostic Grifols, S.A.
 Instituto Grifols, S.A
 Laboratorios Grifols, S.A.,
 Biomat, S.A.,
 Grifols Engineering, S.A.,
 Logister, S.A.
 2




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Biomat USA, Inc
 Grifols Biologicals, Inc.,
 PlasmaCare, Inc.,
 Plasma Collection Centers, Inc.,
 Lateral Grifols Pty Ltd.
 Medion Grifols Diagnostic AG,
 - Commercial area
  3




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Movaco, S.A.
 Grifols International, S.A.,
 Grifols Portugal Productos Farmacéuticos e Hospitalares, Lda.,
 Grifols Chile, S.A.
 Grifols Argentina, S.A.
 Grifols s.r.o.
 4




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Logistica Grifols, S.A. de C.V.
 Grifols México, S.A. de C.V.
 Grifols USA, LLC.
 Grifols Italia S.p.A
 Grifols UK Ltd.,
 Grifols Deutschland GmbH
 5




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Grifols Brasil, Ltda.
 Grifols France, S.A.R.L.
 Alpha Therapeutic Italia, S.p.A.
 Grifols Asia Pacific Pte, Ltd
 Grifols Malaysia Sdn Bhd
 Grifols (Thailand) Ltd
 Grifols Polska Sp.z.o.o.
 Australian Corporate Number 073 272 830 Pty Ltd.
 6




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Medion Diagnostics GmbH
 Grifols Nordic, AB
 Grifols Colombia, Ltda
 - Services area
  Grifols, Inc.
 Grifols Viajes, S.A.,
 Squadron Reinsurance Ltd
 Arrahona Optimus, S.L.,
 7




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Gri-Cel, S.A.,
 Saturn Australia Pty Ltd.,
 Saturn Investments AG,
 Woolloomooloo Holdings Pty Ltd.,
 (c) Associates and other participations
 Quest Internacional, Inc,
 UTE Salas Blancas
 Nanotherapix, S.L.
 8




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 
 (2) Basis of Presentation of the Consolidated Financial Statements
    (a) Changes to IFRS in 2010, 2009 and 2008
  Effective date in 2008
 Standards that have not affected the Group
 -
    
    Amendment to IAS 39 Reclassification of Financial Assets: Effective Date
and Transition (effective date 1 July 2008).-
    
    IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective date
1 October 2008).-
    
    IFRIC 12 Service Concession Arrangements (effective date 1 January 2008).-
    
    IFRIC 14 IAS 19 The Limit of a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction (effective date 1 January 2008)-
    
    Amendments to IAS 39 and IFRS 7: Reclassification of Financial Instruments
(effective date 1 July 2008).
 9




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Effective date in 2009
 a)
    
    Standards effective as of 1 January 2009 that have required changes to
accounting policies and presentation-
    
    IAS 1 Presentation of Financial Statements (revised 2007) (annual periods
beginning on or after 1 January 2009). This standard modifies the requirements for
presentation of the financial statements, introducing the statement of comprehensive
income, which comprises income and other comprehensive income. Entities may also
present two separate statements, an income statement showing profit or loss for the
year and a statement of other comprehensive income presenting profit or loss for the
year and other comprehensive income. When an entity changes an accounting policy
retrospectively or makes a retrospective reclassification of items in its financial
statements, it must also present a statement of financial position (balance sheet) as
at the beginning of the earliest comparative period.-
    
    IFRS 8 Operating Segments (annual periods beginning on or after 1 January
2009). The impact of this standard mainly relates to the disclosure of financial
information by segment. See note 6.-
    
    IAS 23 Borrowing Costs (revised 2007) (annual periods beginning on or after
1 January 2009). This is a change in accounting policy. The Group applies this
standard to borrowing costs related to qualifying assets capitalised on or subsequent
to the date this standard became effective. The standard eliminates the possibility
of recognising these borrowing costs as an expense, stipulating that borrowing costs
that are directly attributable to the acquisition, construction or production of a
qualifying asset form part of the cost of that asset. Since 1 January 2009 the Group
has capitalised interest amounting to Euros 1,278 thousand (see note 26).-
    
    Amendments to IFRS 7: Improving Disclosures about Financial Instruments
(applicable for years beginning on or after 1 January 2009).b)
    
    Standards effective as of 1 January 2009 that have not affected the Group-
    
    IFRIC 13 Customer Loyalty Programmes (annual periods beginning after 31
December 2008).-
    
    IFRS 2 Share-Based Payment: Modifications to vesting conditions and
cancellations (applied retrospectively to annual periods beginning on or after 1
January 2009).-
    
    IAS 32 Financial Instruments: Presentation and IAS 1: Presentation of
Financial Statements: Changes to puttable financial instruments and obligations
arising on liquidation (effective as of 1 January 2009).
 10




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 -
    
    Improvements to IFRSs. This document modifies various standards and is
effective for years beginning on or after 1 July 2009.-
    
    IFRS 1 First-time Adoption of International Financial Reporting Standards
and IAS 27 Consolidated and Separate Financial Statements: These changes relate to
the measurement of investments in separate financial statements. This standard is
applied prospectively for years started on or after 1 January 2009.-
    
    Embedded derivatives: Amendments to IFRIC 9 and IAS 39 (applicable for
years started after 31 December 2008).-
    
    IFRS 1 First-time Adoption of International Financial Reporting Standards
(applicable to annual periods beginning after 31 December 2009). This change does not
affect the Group.-
    
    IFRIC 15 Agreements for the Construction of Real Estate.-
    
    IFRIC 17 Distribution of Non-Cash Assets to Owners (effective date: 1 July
2009).-
    
    IFRIC 18 Transfers of Assets from Customers (effective date: 1 July 2009).-
    
    IAS 39 Financial Instruments: Recognition and Measurement. Changes to the
items that can be classified as hedged. The amendment clarifies the types of risks
that can be classified as hedged when applying hedge accounting (effective date: 1
July 2009).
 Effective date in 2010
 -
    
    Amendment to IFRS 2 Group Cash-settled Share Based Payment Transactions
(effective date: 1 January 2010).-
    
    2009 improvements to IFRSs (effective date: 1 January 2010).-
    
    Amendment to IAS 32 Financial Instruments: Presentation, Classification of
Rights Issues (effective date: 1 February 2010).-
    
    IFRIC 19 Extinguishing financial liabilities with equity instruments
(effective date: 1 July 2010).-
    
    Amendment to IFRS 1 Limited Exemption from Comparative IFRS 7 Disclosures
for First-time Adopters (effective date: 1 July 2010).-
    
    IFRS 3 Amendments resulting from May 2010 Annual Improvements (effective
date: 1 July 2010).
 11




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
    Standards issued but not effective on 2010
 -
    
    IAS 24 Revised Related Party Disclosures-
    
    Amendment to IFRIC 14: Prepayment of a minimum funding requirement (effective
date: 1 January 2011).-
    
    IFRS 7 Amendments resulting from May 2010 Annual Improvements (effective
date: 1 January 2011).-
    
    Amendment to IFRIC 13 Customer Loyalty Programmes (effective date: 1 January
2011).-
    
    IAS 34 Amendments resulting from May 2010 Annual Improvements (effective
date: 1 January 2011).-
    
    IAS 1 Amendments resulting from May 2010 Annual Improvements (effective date:
1 January 2011).
  12




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 (b)
    
    Relevant accounting estimates, assumptions and judgements used when applying
accounting principlesThe preparation of consolidated financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the application
of Group accounting policies. A summary of the items requiring a greater degree of
judgement or complexity, or where the assumptions and estimates made are significant
to the preparation of the consolidated financial statements, are as follows:
 

    The assumptions used for calculation of the fair value of financial
instruments (see note 4 (k)).

    Measurement of assets and goodwill to determine any related impairment
losses (see note 4(i)).

    Useful lives of property, plant and equipment and intangible assets (see
notes 4(g) and 4(h)).

    Evaluation of the capitalisation of development costs (see note 4(h)).

    Evaluation of provisions and contingencies (see note 4(r)).

    Evaluation of the effectiveness of hedging (see note 4(l) and 17 (f)).

    The application of the definition of a business (see note 4(b)).
 13




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 (c)
    
    ConsolidationThe percentages of direct or indirect ownership of subsidiaries by the Company at 31
December 2010, 2009 and 2008, as well as the consolidation method used in each case
for preparation of the accompanying consolidated financial statements, are detailed
below:
 31/12/10
    
    31/12/09
    
    31/12/08Percentage ownership
    
    Percentage ownership
    
    Percentage ownershipDirect
    
    Indirect
    
    Direct
    
    Indirect
    
    Direct
    
    IndirectParentGrifols, S.A.Fully-consolidated companiesLaboratorios Grifols,
S.A.
    
    
    99.998
    
    
    
    0.002
    
    
    
    99.998
    
    
    
    0.002
    
    
    
    99.998
    
    
    
    0.002Instituto Grifols, S.A.
    
    
    99.998
    
    
    
    0.002
    
    
    
    99.998
    
    
    
    0.002
    
    
    
    99.998
    
    
    
    0.002Movaco, S.A.
    
    
    99.999
    
    
    
    0.001
    
    
    
    99.999
    
    
    
    0.001
    
    
    
    99.999
    
    
    
    0.001Grifols Portugal
ProductosFarmacéuticos e
Hospitalares, Lda.
    
    
    0.010
    
    
    
    99.990
    
    
    
    0.015
    
    
    
    99.985
    
    
    
    0.015
    
    
    
    99.985Diagnostic Grifols, S.A.
    
    
    99.998
    
    
    
    0.002
    
    
    
    99.998
    
    
    
    0.002
    
    
    
    99.998
    
    
    
    0.002Logister,S.A.
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000Grifols Chile,S.A.
    
    
    99.000
    
    
    
    
    
    
    
    99.000
    
    
    
    
    
    
    
    99.000
    
    
    
    Biomat,S.A.
    
    
    99.900
    
    
    
    0.100
    
    
    
    99.900
    
    
    
    0.100
    
    
    
    99.900
    
    
    
    0.100Grifols Argentina,S.A.
    
    
    99.260
    
    
    
    0.740
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols,s.r.o.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Logistica Grifols S.A de
C.V
    
    
    99.990
    
    
    
    0.010
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols México,S.A. de
C.V.
    
    
    99.990
    
    
    
    0.010
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols Viajes,S.A.
    
    
    99.900
    
    
    
    0.100
    
    
    
    99.900
    
    
    
    0.100
    
    
    
    99.900
    
    
    
    0.100Grifols USA, LLC.
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000Grifols
International,S.A.
    
    
    99.900
    
    
    
    0.100
    
    
    
    99.900
    
    
    
    0.100
    
    
    
    99.900
    
    
    
    0.100Grifols Italia,S.p.A.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols UK,Ltd.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols Deutschland,GmbH
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols Brasil,Ltda.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols France,S.A.R.L.
    
    
    99.000
    
    
    
    1.000
    
    
    
    99.000
    
    
    
    1.000
    
    
    
    99.000
    
    
    
    1.000Grifols Engineering, S.A.
    
    
    99.950
    
    
    
    0.050
    
    
    
    99.950
    
    
    
    0.050
    
    
    
    99.950
    
    
    
    0.050Biomat USA, Inc.
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000Squadron Reinsurance Ltd.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols Inc.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols Biologicals Inc.
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000Alpha Therapeutic
Italia, S.p.A.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Grifols Asia Pacific
Pte., Ltd.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
 14




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 31/12/10
    
    31/12/09
    
    31/12/08Percentage ownership
    
    Percentage ownership
    
    Percentage ownershipDirect
    
    Indirect
    
    Direct
    
    Indirect
    
    Direct
    
    IndirectGrifols Malaysia Sdn Bhd
    
    
    
    
    
    
    30.000
    
    
    
    
    
    
    
    30.000
    
    
    
    
    
    
    
    30.000Grifols (Thailand) Ltd.
    
    
    
    
    
    
    48.000
    
    
    
    
    
    
    
    48.000
    
    
    
    
    
    
    
    48.000Grifols Polska Sp.z.o.o.
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Plasmacare, Inc.
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000Plasma Collection
Centers, Inc.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000Arrahona Optimus S.L.
    
    
    99.995
    
    
    
    0.005
    
    
    
    100.000
    
    
    
    
    
    
    
    100.000
    
    
    
    Woolloomooloo Holdings
Pty Ltd.
    
    
    49.000
    
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    
    
    
    
    Lateral Grifols Pty Ltd.
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    Australian Corporate
Number 073 272 830 Pty
Ltd
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    Saturn Australia Pty Ltd.
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    Saturn Investments AG
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    49.000
    
    
    
    
    
    
    
    Medion Grifols
Diagnostic AG
    
    
    
    
    
    
    39.200
    
    
    
    
    
    
    
    39.200
    
    
    
    
    
    
    
    Medion Diagnostics GmbH
    
    
    
    
    
    
    39.200
    
    
    
    
    
    
    
    39.200
    
    
    
    
    
    
    
    Gri-Cel, S.A.
    
    
    0.001
    
    
    
    99.999
    
    
    
    0.001
    
    
    
    99.999
    
    
    
    
    
    
    
    Grifols Colombia, Ltda.
    
    
    99.000
    
    
    
    1.000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Grifols Nordic AB
    
    
    100.000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 31/12/10
    
    31/12/09
    
    31/12/08Percentage ownership
    
    Percentage ownership
    
    Percentage ownershipDirect
    
    Indirect
    
    Direct
    
    Indirect
    
    Direct
    
    IndirectCompanies accounted for
using the equity methodQuest International, Inc.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35.000
    
    
    
    
    
    
    
    35.000Nanotherapix, S.L
    
    
    
    
    
    
    51,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
     
 (3) Business Combinations
 (a) Acquisition of plasma collection centre from AmeriHealth Plasma LLC.
   16




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  Thousands of Euros2009
    
    
    2008Cost of the business combinationCash paid
    
    
    632
    
    
    
    632Fair value of deferred payment
    
    
    1,968
    
    
    
    1,7432,600
    
    
    
    2,375Fair value of net assets acquired
    
    
    3
    
    
    
    3Goodwill
    
    
    2,597
    
    
    
    2,372(see note 7
    )
    
    
    (see note 7
    )
   (b) Acquisition of Australian-Swiss group
   Thousands of EurosCost of the business combinationCash paid
    
    
    25,000Fair value of deferred payment
    
    
    497Total cost of the business combination
    
    
    25,497Fair value of net assets acquired
    
    
    9,307Goodwill
    
    
    16,190(see note 7
    )
 17




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
       18




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  Thousands of EurosFair value
    
    
    
    Book valueIntangible assets (note 8)
    
    
    6,525
    
    
    
    476Property, plant and equipment (note 9)
    
    
    2,307
    
    
    
    3,113Deferred tax assets (note 29)
    
    
    500
    
    
    
    258Inventories (note 12)
    
    
    3,549
    
    
    
    3,549Trade and other receivables
    
    
    2,096
    
    
    
    2,096Other assets
    
    
    293
    
    
    
    293Cash and cash equivalents
    
    
    10,112
    
    
    
    10,112Total assets
    
    
    25,382
    
    
    
    19,897Trade and other payables
    
    
    3,165
    
    
    
    3,165Other liabilities
    
    
    1,273
    
    
    
    1,272Deferred tax liabilities (note 29)
    
    
    1,761
    
    
    
    551Total liabilities and contingent liabilities
    
    
    6,199
    
    
    
    4,988Total net assets
    
    
    19,183
    
    
    
    14,909Non-controlling interests (note 19)
    
    
    (9,876
    )Total net assets acquired
    
    
    9,307Goodwill (note 7)
    
    
    16,190Cash paid
    
    
    25,497Cash and cash equivalents of the acquired company
    
    
    (10,112
    )Cash outflow for the acquisition
    
    
    15,385
  19




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 
 (4) Accounting and Valuation Principles Applied
 (a) Subsidiaries
       (b) Business combinations
     20




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Business combinations made subsequent to 1 January 2010
        21




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Business combinations made prior to 1 January 2010
   (c) Non-controlling interests
   22




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
    (d) Associates and joint ventures
 Associates
    23




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
       24




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Joint ventures
    (e) Foreign currency transactions
 Functional currency and presentation currency
  Transactions, balances and cash flows in foreign currency
    25




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  Translation of foreign operations
  
 
 
  (f) Borrowing costs
  26




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  (g) Property, plant and equipment
 Initial recognition
   Depreciation
   Depreciationmethod
    
    RatesBuildings
    
    Straight line
    
    1% - 3%Plant and machinery
    
    Straight line
    
    8%-10%Other installations, equipment and furniture
    
    Straight line
    
    10% - 30%Other property, plant and equipment
    
    Straight line
    
    16% - 25%
 27




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  Subsequent recognition
   Impairment
  (h) Intangible assets
 (i) Goodwill
   28




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Internally generated intangible assets
   
 
 
 
   Other intangible assets
  29




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Emission rights
    Useful life and amortisation rates
    Amortisation
    
    Estimated years ofmethod
    
    useful lifeDevelopment expenses
    
    Straight line
    
    3  5Concessions, patents, licences, trademarks and similar
    
    Straight line
    
    5  15Software
    
    Straight line
    
    3  6
  30




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  (i) Impairment of non-financial assets subject to depreciation or amortisation
        31




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
   (j) Leases
 Lessee accounting records
   
    
    Finance leasesAt the commencement of the lease term, the Group recognises finance leases as
assets and liabilities at the lower of the fair value of the leased asset and the
present value of the minimum lease payments. Initial direct costs are added to the
assets carrying amount. Minimum lease payments are apportioned between the finance
charge and the reduction of the outstanding liability. 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
recognised as an expense in the years in which they are incurred.
    
    Operating leasesLease payments under an operating lease (excluding insurance and maintenance) are
recognised as an expense on a straight-line basis unless another systematic basis
is representative of the time pattern of the users benefit.
 32




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Leasehold improvements
  (k) Financial instruments
 Classification of financial instruments
       
 
 
 33




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
             34




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Offsetting principles
  Fair value
  
 
 
 Amortised cost
  35




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Impairment of financial assets carried at cost
  Impairment of available-for-sale financial assets
    Financial liabilities
  Derecognition of financial assets
  36




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  
    
    Payment of the cash flows is conditional on their prior collection.
    
    The Group is unable to sell or pledge the financial asset.
    
    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 has not retained control, it derecognises the financial asset
and recognises 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
recognises 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 amortised cost of the rights and
obligations retained by the Group, if the transferred asset is measured at
amortised 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 recognises any expense incurred on
the associated liability. Recognised 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.
 37




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  (l) Hedge accounting
   Cash flow hedges
   (m) Company own shares
  38




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
    (n) Inventories
       
    
    Raw materials and other supplies: replacement cost. Nevertheless, raw materials
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.
    
    Goods for resale and finished goods: estimated selling price, less costs to sell.
 39




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 
    
    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.
  (o) Cash and cash equivalents
   (p) Government grants
  Capital grants
  Operating grants
  40




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Interest rate grants
  (q) Employee benefits
 Defined contribution plans
  Termination benefits
  Short-term employee benefits
   (r) Provisions
  41




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
   (s) Revenue recognition
  Sale of goods
  
 
 
 
 
 42




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 (ii) Rendering of services
   (iii) Revenue from dividends
  (iv) Revenue from interest on delayed collections
  (t) Income taxes
   43




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
   Taxable temporary differences
  
    
    They arise from the initial recognition of goodwill or an asset or liability in a
transaction which 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.
 Deductible temporary differences
  
    
    It is probable that taxable profit will be available against which the
deductible temporary difference can be utilised, unless the differences arise from
the initial recognition of an asset or liability in a transaction which is not a
business combination and at the time of the transaction, affects neither
accounting profit nor taxable profit.
    
    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.
  44




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Measurement
    Offset and recognition
    (u) Segment reporting
  45




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 (v) Classification of assets and liabilities as current and non-current
  
    
    Assets are classified as current when they are expected to be realised, or are
intended for sale or consumption in the Groups normal operating cycle within twelve
months after the balance sheet date and they are held primarily for the purpose of
trading. Cash and cash equivalents are also classified as current, except where they
may not be exchanged or used to settle a liability, at least within twelve months
after the balance sheet date.
    
    Liabilities are classified as current when they are expected to be settled in the
Groups normal operating cycle within 12 months after the balance sheet date and
they are held primarily for the purpose of trading, or where the Group does not have
an unconditional right to defer settlement of the liability for at least 12 months
after the balance sheet date.
    
    Financial liabilities are classified as current when they are due to be settled
within twelve months after the reporting period, 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 period and before
the consolidated financial statements are authorised for issue.
 
 (5) Financial Risk Management Policy
 (a) General
  
    
    Credit risk
    
    Liquidity risk
    
    Market risk
  46




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
   Credit risk
  Trade receivables
    47




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  Financial instruments and deposits
  Liquidity risk
     Market risk
  48




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 Currency risk
     Interest-rate risk
  Market price risk
   49




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
 (b) Capital management
      
 (6) Segment Reporting
   50




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIESNotes to the Consolidated Financial Statements
  
    
    Balance sheet: cash and cash equivalents, receivables, public entities, deferred
tax assets and liabilities, loans and borrowings and certain payables.
    
    Income statement: general administration expenses, other operating income /
expenses, finance income / expense and income tax.
  (a) Operating segments
  
    
    Bioscience: including all activities related with products deriving 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.
    
    Raw materials: including sales of intermediate biological products and the
rendering of manufacturing services to third party companies.
  % of sales2010
    
    2009
    
    2008Hemoderivatives
    
    
    77.9
    %
    
    
    76.0
    %
    
    
    75.6
    %Other hemoderivatives
    
    
    0.2
    %
    
    
    0.2
    %
    
    
    0.3
    %Transfusional medicine
    
    
    7.9
    %
    
    
    8.2
    %
    
    
    7.3
    %In vitro diagnosis
    
    
    3.1
    %
    
    
    3.1
    %
    
    
    3.2
    %Fluid therapy and nutrition
    
    
    5.0
    %
    
    
    5.2
    %
    
    
    5.7
    %Hospital supplies
    
    
    4.1
    %
    
    
    4.2
    %
    
    
    4.4
    %Raw materials
    
    
    0.5
    %
    
    
    2.5
    %
    
    
    2.8
    %Other
    
    
    1.3
    %
    
    
    0.6
    %
    
    
    0.7
    %100
    %
    
    
    100
    %
    
    
    100
    %
 51




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 (b) Geographical information
 Geographical information is grouped into four areas:
 
    
    Spain
    
    Rest of the European Union
    
    United States of America
    
    Rest of the world
 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
 No entity represents 10% or more of the Groups sales.
 
 (7) Goodwill
 Details of and movement in goodwill in the year 2008 are as follows:
 Thousands of EurosBalances at
    
    Business
    
    Translation
    
    Balances at31/12/07
    
    combinations
    
    differences
    
    31/12/08Net valueGrifols UK,Ltd.
    
    
    9,369
    
    
    
    
    
    
    
    (2,156
    )
    
    
    7,213Grifols Italia,S.p.A.
    
    
    6,118
    
    
    
    
    
    
    
    
    
    
    
    6,118Biomat USA, Inc.
    
    
    85,390
    
    
    
    2,372
    
    
    
    5,256
    
    
    
    93,018Plasmacare, Inc.
    
    
    34,912
    
    
    
    
    
    
    
    2,017
    
    
    
    36,929Plasma Collection Centers, Inc.
    
    
    14,454
    
    
    
    
    
    
    
    835
    
    
    
    15,289150,243
    
    
    
    2,372
    
    
    
    5,952
    
    
    
    158,567(note 3(a
    ))
 52




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Details of and movement in goodwill in the year 2009 are as follows:
 Thousands of EurosBalances at
    
    Business
    
    Translation
    
    Balances at31/12/08
    
    combinations
    
    differences
    
    31/12/09Net valueGrifols UK,Ltd.
    
    
    7,213
    
    
    
    
    
    
    
    523
    
    
    
    7,736Grifols Italia,S.p.A.
    
    
    6,118
    
    
    
    
    
    
    
    
    
    
    
    6,118Biomat USA, Inc.
    
    
    93,018
    
    
    
    225
    
    
    
    (3,154
    )
    
    
    90,089Plasmacare, Inc.
    
    
    36,929
    
    
    
    
    
    
    
    (1,253
    )
    
    
    35,676Plasma Collection Centers, Inc.
    
    
    15.289
    
    
    
    
    
    
    
    (519
    )
    
    
    14,770Woolloomooloo Holdings Pty Ltd.
    
    
    
    
    
    
    16,190
    
    
    
    3,421
    
    
    
    19,611158,567
    
    
    
    16,415
    
    
    
    (982
    )
    
    
    174,000(note 3(a) and  3(b))
 Details of and movement in goodwill in the year 2010 are as follows:
 Thousands of EurosBalances at
    
    
    
    
    
    Translation
    
    Balances at31/12/09
    
    Transfers
    
    differences
    
    31/12/10Net valueGrifols UK,Ltd.
    
    
    7,736
    
    
    
    
    
    
    
    246
    
    
    
    7,982Grifols Italia,S.p.A.
    
    
    6,118
    
    
    
    
    
    
    
    
    
    
    
    6,118Biomat USA, Inc.
    
    
    90,089
    
    
    
    14,770
    
    
    
    8,193
    
    
    
    113,052Plasmacare, Inc.
    
    
    35,676
    
    
    
    
    
    
    
    2,788
    
    
    
    38,464Plasma Collection Centers, Inc.
    
    
    14,770
    
    
    
    (14,770
    )
    
    
    
    
    
    
    Woolloomooloo Holdings Pty Ltd.
    
    
    19,611
    
    
    
    
    
    
    
    4,221
    
    
    
    23,832174,000
    
    
    
    
    
    
    
    15,448
    
    
    
    189,448
 Impairment testing:
 Goodwill has been allocated to each of the Groups cash-generating units (CGUs) in accordance
with their respective business segments and on a geographical basis, this being the lowest
level at which goodwill is controlled by management for management purposes and lower than the
operating segments. Plasma Collection Centers, Inc. and Plasmacare, Inc. are integrated into
the management of Biomat USA, Inc. for the purpose of impairment analysis.
 53




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Goodwill has been allocated to the cash generating units as follows:
 -
    
    UK: bioscience segment-
    
    Italy: bioscience segment-
    
    USA: bioscience segment-
    
    Australia: mainly to the Diagnostics segment.
 The recoverable amount of a CGU is determined based on its value in use. These calculations are
based on cash flow projections from 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 value in use of the CGUs have been as follows:
 Growth rate
    
    Discount rate after tax2010
    
    2009
    
    2010
    
    2009Bioscience
    
    
    2% - 3
    %
    
    
    3
    %
    
    
    8% - 8.5
    %
    
    
    8
    %Diagnostic
    
    
    2
    %
    
    
    2
    %
    
    
    8.30
    %
    
    
    8.7
    %
 Management determines budgeted gross margins based on past experience and forecast market
development. Average weighted growth rates are coherent with the forecasts included in industry
reports. The discount rates used reflect specific risks related to the CGUs.
 Paragraph A20 of IAS 36 requires the discount rate used to be a pre-tax rate and establishes
that when the basis used to estimate the discount rate is post-tax, that basis is adjusted to
reflect a pre-tax rate. The following pre-tax discount rates have been used:
 Discount rate before tax2010
    
    2009Bioscience
    
    
    10.5% - 10.9
    %
    
    
    9.5% - 13
    %Diagnostic
    
    
    10.40
    %
    
    
    9.8
    %
 The use of post-tax discount rates adjusted to reflect pre-tax discount rates has not
given rise to any values in use which differ significantly from those which would have arisen
had the discount rates been pre-tax.
 54




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 
 (8) Other Intangible Assets
 Details of other intangible assets and movement during the years ended 31 December 2010,
2009 and 2008 are included in Appendix II, which forms an integral part of these notes to the
consolidated financial statements.
 The cost of fully-amortised intangible assets in use at 31 December 2010 and 2009 is Euros
57,203 thousand and Euros 38,183 thousand, respectively.
 The Group has recognised Euros 9,963 thousand in 2010 (Euros 11,823 thousand in 2009 and Euros
7,644 thousand in 2008) as self-constructed assets.
 At 31 December 2010 the Group has recognised licenses with indefinite useful lives under
intangible assets for a carrying amount of Euros 24,691 thousand (Euros 23,379 thousand at 31
December 2009). The Group has also recognised Euros 11,492 thousand as costs of development in
progress (Euros 21,943 thousand at 31 December 2009).
 At 31 December 2010 the Group has recognised CO2 emission rights for Euros 534 thousand (Euros
493 thousand at 31 December 2009) (see note 4(h (iv))).
 During 2010 the Group signed a distribution agreement for a new blood genotype test developed
by Progenika Biopharma, acquiring a customer portfolio of Euros 1,358 thousand and which is
recognised under Other intangible assets.
 Impairment testing:
 Indefinite-lived intangible assets have been allocated to the Groups Plasmacare, Inc. and
Biomat USA, Inc. cash-generating units (CGUs), which belong to the Bioscience segment.
 The recoverable amount of a CGU is determined based on its value in use. These calculations are
based on cash flow projections from 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 value in use are as follows:
 Discount rate after tax2010
    
    2009Growth rate used to extrapolate projections
    
    
    3
    %
    
    
    3
    %Discount rate after tax
    
    
    8.5
    %
    
    
    8
    %
 55




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Paragraph A20 of IAS 36 requires the discount rate used to be a pre-tax rate and
establishes that when the basis used to estimate the discount rate is post-tax, that basis is
adjusted to reflect a pre-tax rate. The pre-tax rate in 2010 is 10.9% (9.5% in 2009). The use
of a post-tax discount rate adjusted to reflect the pre-tax discount rate has not given rise to
any values in use which differ significantly from those which would have arisen had the
discount rates been pre-tax.
 
 (9) Property, Plant and Equipment
 Details of property, plant and equipment and movement in the consolidated balance sheet at
31 December 2010, 2009 and 2008 are included in Appendix III, which forms an integral part of
these notes to the consolidated financial statements.
 The main investments during the years 2010 and 2009 correspond to the construction of the
production plants in Los Angeles and Parets del Vallès.
 The main investments during the year 2008 have been as follows:
 -
 -
 Property, plant and development under construction at 31 December 2010 and 2009 mainly
comprises investments made to extend the companies installations and to increase their
productive capacity.
 a)
    
    Mortgaged property, plant and equipmentAt 31 December 2010 certain land and buildings have been mortgaged for Euros 49,316
thousand (Euros 45,382 thousand at 31 December 2009) to secure payment of certain loans
(see note 22).b)
    
    Official capital grants receivedDuring 2010, the Group has received capital grants totalling Euros 323 thousand (Euros 742
thousand at 31 December 2009) (see note 20).
 56




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 c)
    
    InsuranceGroup policy is to contract sufficient insurance coverage for the risk of damage to
property, plant and equipment. At 31 December 2010 and 2009 the Group has a combined
insurance policy for all Group companies, which adequately covers the carrying amount of
all the Groups assets.d)
    
    Revalued assetsAt 1 January 2004, date of first adopting IFRS-EU, the Group opted to apply the exemption
regarding fair value and revaluation as deemed cost as permitted by IFRS 1: First-time
Adoption of IFRS. In accordance with this exemption, the Groups land and buildings were
revalued based on independent expert appraisals at 1 January 2004. Appraisals were
performed based on market values.e)
    
    Assets under finance leaseThe Group had contracted the following types of property, plant and equipment under finance
leases at 31 December 2009:
 Thousands of EurosAccumulatedAsset
    
    Cost
    
    depreciation
    
    Net valueTechnical installations and
other property, plant and
equipment
    
    
    19,641
    
    
    
    (5,507
    )
    
    
    14,134
 The Group has contracted the following types of property, plant and equipment under
finance leases at 31 December 2010:
 Thousands of EurosAccumulatedAsset
    
    Cost
    
    depreciation
    
    Net valueTechnical installations and
other property, plant and
equipment
    
    
    15,264
    
    
    
    (4,782
    )
    
    
    10,482
 Details of minimum lease payments and the present value of finance lease liabilities,
disclosed by maturity date, are detailed in note 22 (a.1.3).
 57




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 f)
    
    Fully-depreciated assetsThe cost of fully-depreciated property, plant and equipment in use at 31 December 2010 and
2009 is Euros 98,978 thousand and Euros 73,370 thousand, respectively.g)
    
    Self-constructed property, plant and equipmentAt 31 December 2010 the Group has recognised Euros 23,550 thousand as self-constructed
property, plant and equipment (Euros 29,319 thousand at 31 December 2009 and Euros 18,150
thousand at 31 December 2008).h)
    
    Purchase commitmentsAt 31 December 2010 the Group has property, plant and equipment purchase commitments
amounting to Euros 6,148 thousand.
 
 (10) Investments Accounted for Using the Equity Method
 At 31 December 2009 and 2008 equity accounted investments comprised the investment held by
Diagnostic Grifols, S.A. in the company Quest International, Inc. This company is located in
Miami, Florida (USA) and its activity consists of the manufacture and commercialisation of
reagents and clinical analysis instruments. On 9 November 2010 the Group sold its interest in
the company for a sale price of Euros 621 thousand.
 Because the Group had significant influence over these companies, the consolidation method used
was the equity method.
 Details of and movement in this caption in year 2008 are as follows:
 Thousands of EurosBalances at
    
    
    
    
    
    Translation
    
    Balances at31/12/07
    
    Gains
    
    differences
    
    31/12/08Equity accounted investments
    
    
    243
    
    
    
    24
    
    
    
    107
    
    
    
    374
 Details of and movement in this caption in year 2009 are as follows:
 Thousands of EurosBalances at
    
    
    
    
    
    Translation
    
    Balances at31/12/08
    
    Gains
    
    differences
    
    31/12/09Equity accounted investments
    
    
    374
    
    
    
    51
    
    
    
    (42
    )
    
    
    383
 58




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Details of and movement in this caption in year 2010 are as follows:
 Thousands of EurosGain / (lossesBalances at
    
    &
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/09
    
    impairment)
    
    Disposals
    
    Acquisitions
    
    differences
    
    31/12/10Equity accounted
investments
    
    
    383
    
    
    
    (879
    )
    
    
    (463
    )
    
    
    1,472
    
    
    
    85
    
    
    
    598
 The balance at 31 December 2010 relates to the investment (acquired in 2010) which
Gri-cel, S.A. holds in Nanotherapix, S.L. (see note 2 (c), a joint venture which has been
accounted for using the equity method).
 Summarised financial information on the equity accounted investments is as follows:
 Thousands of EurosPercentageCountry
    
    ownership
    
    Assets
    
    Liabilities
    
    Equity
    
    Result31/12/2008Quest International, Inc
    
    USA
    
    
    35
    %
    
    
    1,736
    
    
    
    667
    
    
    
    1,069
    
    
    
    6931/12/2009Quest International, Inc
    
    USA
    
    
    35
    %
    
    
    1,664
    
    
    
    580
    
    
    
    1,084
    
    
    
    14531/12/2010Nanotherapix, S.L.
    
    Spain
    
    
    51
    %
    
    
    2,375
    
    
    
    1,212
    
    
    
    1,163
    
    
    
    (312
    )
 
 (11) Non-Current Financial Assets
 Details of this caption of the consolidated balance sheet at 31 December 2010, 2009 and
2008 are as follows:
 Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Non-current guarantee deposits
    
    
    1,217
    
    
    
    1,142
    
    
    
    1,113Assets available for sale
    
    
    535
    
    
    
    501
    
    
    
    523Loans to third parties
    
    
    5,783
    
    
    
    2,088
    
    
    
    Non-current financial assets
    
    
    7,535
    
    
    
    3,731
    
    
    
    1,636
 59




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 During 2010, the Group has extended two new mortgage loans totalling Euros 3,723 thousand
to the owners of two plasma centres in the USA occupied by group companies. These loans have a
term of 20 years, bear interest at a fixed rate of 4.5% and are secured by the property and by
a personal security. This interest rate does not differ from a mortgage market interest rate.
In 2009 the Group extended a similar mortgage loan for an amount of Euros 2,174 thousand.
 At 31 December 2010, available-for-sale assets relate to the following:
 -
    
    The interest of less than 1% that the Group holds in Northfield
Laboratories, Inc. (USA). At 31 December 2010, 2009 and 2008 provision has been made
for the full amount of this investment, based on its fair value.-
    
    The interest of less than 2% in the share capital of biotechnology company,
Cardio 3 Bioscience (with registered offices in Belgium) acquired by Grifols, S.A. in
December 2008 for an amount of Euros 500 thousand. The activity of this company
involves research into and the development of biological therapies using stem cells
for the treatment of cardiovascular diseases. The Group has measured this asset at
cost, as its fair value cannot be reliably determined.
 
 (12) Inventories
 Details of inventories at 31 December are as follows:
 Thousands of Euros2010
    
    2009Goods for resale
    
    
    63,050
    
    
    
    65,718Raw materials and other supplies
    
    
    160,326
    
    
    
    170,987Work in progress and semi-finished goods
    
    
    203,971
    
    
    
    146,612Finished goods
    
    
    100,518
    
    
    
    101,145527,865
    
    
    
    484,462
 60




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Movement in inventories of finished products, work in progress and materials consumed
was as follows:
 Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08*
    
    *
    
    *Inventories of goods for resaleNet purchases
    
    
    56,542
    
    
    
    50,886
    
    
    
    79,902Changes in inventories
    
    
    6,911
    
    
    
    (9,201
    )
    
    
    (22,700
    )63,453
    
    
    
    41,685
    
    
    
    57,202Raw materials and suppliesNet purchases
    
    
    225,994
    
    
    
    274,537
    
    
    
    190,667Changes in inventories
    
    
    17,412
    
    
    
    (29,948
    )
    
    
    (41,131
    )243,406
    
    
    
    244,589
    
    
    
    149,536Materials consumed
    
    
    306,859
    
    
    
    286,274
    
    
    
    206,738Changes in inventories of
finished products and work in
progress
    
    
    (45,749
    )
    
    
    (73,093
    )
    
    
    (31,058
    )Changes in inventories of
finished products , work in
progress and materials
consumed
    
    
    261,110
    
    
    
    213,181
    
    
    
    175,680
 
 *
    
    Expenses/(Income) Reconciliation of goods for resale during 2010, 2009 and 2008 has been as follows:
 Thousands of Euros2010
    
    2009
    
    2008Inventories of goods for resale at 1 January
    
    
    65,718
    
    
    
    54,509
    
    
    
    37,138Business combinations
    
    
    
    
    
    
    158
    
    
    
    Net cancellations for the year
    
    
    
    
    
    
    (568
    )
    
    
    (515
    )Increase / (decrease) of goods for resale
    
    
    (6,911
    )
    
    
    9,201
    
    
    
    22,700Translation differences
    
    
    4,243
    
    
    
    2,418
    
    
    
    (4,814
    )Inventories of goods for resale at 31 December
    
    
    63,050
    
    
    
    65,718
    
    
    
    54,509
 61




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Reconciliation of inventories of raw materials and materials consumed during 2010, 2009
and 2008 has been as follows:
 Thousands of Euros2010
    
    2009
    
    2008Inventories of raw materials at 1 January
    
    
    170,987
    
    
    
    142,209
    
    
    
    96,044Business combinations
    
    
    
    
    
    
    824
    
    
    
    Increase / (decrease) in raw materials
    
    
    (17,412
    )
    
    
    29,948
    
    
    
    41,131Translation differences
    
    
    6,751
    
    
    
    (1,994
    )
    
    
    5,034Inventories of raw materials at 31
December
    
    
    160,326
    
    
    
    170,987
    
    
    
    142,209
 Reconciliation of inventories of finished goods and work in progress during 2010, 2009
and 2008 has been as follows:
 Thousands of Euros2010
    
    2009
    
    2008Inventories of
finished goods and
work in progress at 1
January
    
    
    247,757
    
    
    
    176,939
    
    
    
    138,226Business combinations
    
    
    
    
    
    
    2,567
    
    
    
    Increase in
inventories of
finished goods and
work in progress
    
    
    45,749
    
    
    
    73,093
    
    
    
    31,058Translation differences
    
    
    10,983
    
    
    
    (4,842
    )
    
    
    7.655Inventories of
finished goods and
work in progress at 31
December
    
    
    304,489
    
    
    
    247,757
    
    
    
    176,939
 Net purchases include purchases made in the following foreign currencies:
 Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08CurrencyUS Dollar
    
    
    145,584
    
    
    
    196,936
    
    
    
    168,037Other currencies
    
    
    6,569
    
    
    
    4,498
    
    
    
    7,315
 62




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 
 (13) Trade and Other Receivables
 Details at 31 December 2010 and 2009 are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Trade receivables
    
    
    224,355
    
    
    
    207,840Other receivables
    
    
    31,012
    
    
    
    27,210Associates
    
    
    5
    
    
    
    812Personnel
    
    
    366
    
    
    
    395Advances for fixed assets
    
    
    494
    
    
    
    1,103Other advances
    
    
    3,265
    
    
    
    1,844Public entities, other receivables
    
    
    8,890
    
    
    
    8,176Other receivables
    
    
    44,032
    
    
    
    39,540Current income tax assets
    
    
    14,607
    
    
    
    7,802282,994
    
    
    
    255,182
 Trade receivablesTrade receivables, net of the provision for bad debts, include notes receivable discounted at
banks at 31 December 2010, which amount to Euros 1,396 thousand (Euros 1,298 thousand at 31
December 2009) (see note 22).Trade receivables include balances in the following foreign currencies:
 Thousands of Euros31/12/10
    
    31/12/09CurrencyUS Dollar
    
    
    52,466
    
    
    
    45,297Chilean Peso
    
    
    17,008
    
    
    
    12,778Mexican Peso
    
    
    10,583
    
    
    
    7,986Argentinean Peso
    
    
    4,075
    
    
    
    3,404Brazilian Real
    
    
    4,616
    
    
    
    3,225Czech Crown
    
    
    3,030
    
    
    
    3,217Pound Sterling
    
    
    3,116
    
    
    
    2,849Thai Baht
    
    
    1,842
    
    
    
    1,366Polish Zloty
    
    
    2,379
    
    
    
    1,292Australian Dollar
    
    
    3,769
    
    
    
    1,101Other currencies
    
    
    2,412
    
    
    
    1,644
 63




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Other receivablesOther receivables at 31 December 2010 and 2009 include Euros 6,639 thousand (Euros 8,089
thousand at 31 December 2009) reflecting interest receivable from social security-affiliated
entities.During 2010, 2009 and 2008 certain Grifols Group companies have sold receivables without
recourse from several public entities to Deutsche Bank, S.A.E. According to these contracts,
the Group receives an initial payment which usually amounts to approximately 90% of the
nominal amount of the receivables. Receipt of the deferred amount (remainder of the nominal
amount) is collected by the Group once Deutsche Bank has collected the nominal amount of the
receivables and until then the pending amount is recognised in the balance sheet as a
receivable. Because the receivables are with public entities it is considered that there is
very low credit risk. At 31 December 2010, Euros 19,504 thousand is receivable for this
deferred amount (Euros 13,675 thousand at 31 December 2009). Initial payment is made 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 control of the
receivables to Deutsche Bank and therefore, the Group has derecognised the total initial
payment on its balance sheet, since all risks and rewards have been transferred.Certain foreign group companies and one Spanish company have also entered into contracts to
sell receivables without recourse to financial institutions.Total balances receivable without recourse sold to financial institutions through the
aforementioned contracts amount to Euros 185.2 million at 31 December 2010 (Euros 116.3
million at 31 December 2009).The finance cost of these operations for the Group totals approximately Euros 5,378 thousand
which has been recognised under finance costs in the 2010 consolidated income statement
(Euros 2,531 thousand in 2009 and Euros 2,128 thousand in 2008) (see note 28).Details of balances with related parties are shown in note 33.Receivables from public entities are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Taxation authorities, VAT
    
    
    8,191
    
    
    
    7,451Social Security
    
    
    85
    
    
    
    107Other public entities
    
    
    614
    
    
    
    618Public entities, other receivables
    
    
    8,890
    
    
    
    8,176
 64




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Current tax assetsCurrent tax assets are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Recoverable income tax:Current year
    
    
    9,352
    
    
    
    7,188Prior years
    
    
    5,255
    
    
    
    614Current tax assets
    
    
    14,607
    
    
    
    7,802
 
 (14) Other Current Financial Assets
 Details of this caption of the consolidated balance sheet at 31 December 2010 and 2009 are
as follows:
 Thousands of Euros31/12/10
    
    31/12/09Current investments
    
    
    12,387
    
    
    
    5,943Guarantee deposits
    
    
    44
    
    
    
    209Current loans to third parties
    
    
    515
    
    
    
    395Financial derivatives (note 32)
    
    
    
    
    
    
    1,670Total other current financial assets
    
    
    12,946
    
    
    
    8,217
 Current investments comprise current guarantee deposits held in financial institutions
with maturity greater than three months from the date of acquisition.
 65




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 
 (15) Other Current Assets
 Details of this caption of the consolidated balance sheet at 31 December 2010 and 2009
are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Prepaid expenses  professional services
    
    
    72,983
    
    
    
    1,703Prepaid expenses  insurance
    
    
    3,508
    
    
    
    3,403Royalties and rentals
    
    
    2,589
    
    
    
    611Other prepaid expenses
    
    
    1,548
    
    
    
    1,628Total other current assets
    
    
    80,628
    
    
    
    7,345
 At 31 December 2010 professional services include an amount of Euros 71,174 thousand
relating to costs incurred for professional services directly relating to the share capital
increase and the debt issue expected to be made in relation to the acquisition of Talecris
(see note 31 (f)).Costs related to the capital increase will be taken to equity when the capital increase is
performed. Costs relating to the issue of debt will be deducted from the financial liability
when it is recognised.Costs incurred in relation to the business combination, amounting to Euros 16,999 thousand,
have been recognised as expenses for 2010 (see note 27).
 
 (16) Cash and Cash Equivalents
 Details of this caption of the consolidated balance sheet at 31 December 2010 and 2009 are
as follows:
 Thousands of Euros31/12/10
    
    31/12/09Current deposits
    
    
    211,564
    
    
    
    237,801Cash at banks
    
    
    28,085
    
    
    
    11,571Total cash and cash equivalents
    
    
    239,649
    
    
    
    249,372
 Current deposits mainly include the surplus of funds from the issue of bonds in the USA
during 2009 (see note 5 (a)).
 66




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Details of cash and cash equivalents at 31 December 2010 and 2009 by currency are as follows:
 Thousands of Euros31/12/10
    
    31/12/09CurrencyEuro
    
    
    4,268
    
    
    
    2,153US Dollar
    
    
    202,942
    
    
    
    208,800Other currency
    
    
    32,439
    
    
    
    38,419239,649
    
    
    
    249,372
 
 (17) Equity
 Details of consolidated equity and changes are shown in the consolidated statement of
changes in equity, which forms an integral part of the consolidated financial statements.
 (a)
    
    Share capital
 At 31 December 2010 and 2009 the Companys share capital is represented by 213,064,899
ordinary shares of Euros 0.50 par value each, which are subscribed and fully paid and
have the same voting and profit-sharing rights.These shares are freely transferable.The Company only has information on the identity of its shareholders when this
information is provided voluntarily or to comply with prevailing legislation. Based on
the information available to the Company, its most significant shareholders at 31
December 2010 and 2009 are as follows:
 Percentage ownership31/12/10
    
    31/12/09Scranton Enterprises,B.V.
    
    
    7.58
    %
    
    
    10.65
    %Capital Research and Management Company
    
    
    10.02
    %
    
    
    Other
    
    
    82.40
    %
    
    
    89.35
    %100.00
    %
    
    
    100.00
    %
 (b)
    
    Share premium
 There have been no movements in share premium during 2010 and 2009. In 2008 dividends
were paid from share premium amounting to Euros 10,030 thousand.
 67




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##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 (c)
    
    Reserves
 The availability of the reserves for distribution is subject to legislation applicable
to each of the Group companies. At 31 December 2010, Euros 28,876 thousand equivalent to
the carrying amount of development costs pending amortisation of certain Spanish
companies (Euros 25,987 thousand at 31 December 2009) (see note 8) are, in accordance
with applicable legislation, restricted reserves which cannot be distributed until these
development costs have been amortised.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 2010 the legal reserve of the Parent has been fully appropriated and
amounts to Euros 21,306 thousand (Euros 18,657 thousand at 31 December 2009).Distribution of the legal reserves of Spanish companies is subject to the same
restrictions as those of the Parent Company and at 31 December 2010 and 2009 the balance
of the legal reserve of other Spanish companies amounts to Euros 2,106 thousand.Other foreign Group companies have a legal reserve amounting to Euros 692 thousand
(Euros 654 thousand at 31 December 2009).
 (d)
    
    Own shares
 During the year ended 31 December 2009 the Company has carried out the following
operations with own shares:
 Thousands ofNo. of shares
    
    EurosBalance at 1 January 2009
    
    
    2,411,622
    
    
    
    33,087Acquisitions
    
    
    2,176,929
    
    
    
    25,186Disposals
    
    
    (4,535,225
    )
    
    
    (57,596
    )Balance at 31 December 2009
    
    
    53,326
    
    
    
    677
 68




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##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 During the year ended 31 December 2010 the Company has carried out the following
operations with own shares:
 Thousands ofNo. of shares
    
    EurosBalance at 1 January 2010
    
    
    53,326
    
    
    
    677Acquisitions
    
    
    105,000
    
    
    
    1,250Balance at 31 December 2010
    
    
    158,326
    
    
    
    1,927
 As a result, the Company holds own shares equivalent to 0.07% of its capital at 31
December 2010 (0.03% at 31 December 2009).
 (e)
    
    Distribution of profits
 The profits of Grifols, S.A. and subsidiaries will be distributed as agreed by
respective shareholders of each company at their general meetings.The Board of directors of Grifols, S.A. will propose to the shareholders at their annual
general meeting that the profit of Grifols, S.A. for the year ended 31 December 2010,
amounting to Euros 63,548 thousand, be transferred to reserves.The distribution of the Companys profit for the year ended 31 December 2009 is
presented in the consolidated statement of changes in equity.The dividend per share distributed at 30 June 2009 is as follows:
 30/06/2009% of par
    
    
    
    Euro per
    
    
    
    Amountvalue
    
    
    
    share
    
    
    

    (Thousands of Euros)Ordinary shares
    
    
    46
    
    
    
    0.23
    
    
    
    48,691Total dividends paid in June 2009
    
    
    46
    
    
    
    0.23
    
    
    
    48,691Dividends with a charge to profits
    
    
    46
    
    
    
    0.23
    
    
    
    48,691Total dividends paid in June 2009
    
    
    46
    
    
    
    0.23
    
    
    
    48,691
 69




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##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 The dividend per share (interim dividend) distributed in December 2009 is as
follows:
 31/12/2009% of par
    
    Euro per
    
    Amountvalue
    

    share
    
    (Thousands of Euros)Ordinary shares
    
    
    30
    
    
    
    0.15
    
    
    
    31,960Total dividends paid in December 2009
    
    
    30
    
    
    
    0.15
    
    
    
    31,960Interim dividend
    
    
    30
    
    
    
    0.15
    
    
    
    31,960Total dividends paid in December 2009
    
    
    30
    
    
    
    0.15
    
    
    
    31,960
 The dividend per share distributed in July 2010 is as follows:
 31/07/2010% of par
    
    Euro per
    
    Amountvalue
    
    share
    
    (Thousands of Euros)Total dividends
paid in July 2010
(ordinary shares)
    
    
    26
    
    
    
    0.13
    
    
    
    27,229
 (f)
    
    Cash flow hedges
 To cover the interest rate risk related to the planned issuance of corporate bonds by
Grifols Inc. (see note 22) a swap was contracted in July 2009 to hedge the interest rate
of 10-year US government bonds, with a nominal amount of US Dollars 200 million and
maturity on 21 September 2009 (date of issuance of the bonds), swapping a variable
interest rate for a fixed rate. The Group has recognised this derivative as hedging of
cash flows from a highly probable transaction. At the date of redemption, the valuation
resulted in a financial cost of Euros 3,275 thousand, which has been recognised in
equity, net of the tax effect under Cash flow hedges and deferred over the term of the
ten-year corporate bond (see notes 22 and 32).
 
 (18) Earnings per Share
 The calculation of basic earnings per share is based on the profit for the year
attributable to the shareholders of the Company divided by the weighted average number of
ordinary shares in circulation throughout the year, excluding own shares.
 70




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Details of the calculation of basic earnings per share are as follows:
 2010
    
    2009
    
    2008Profit for the year attributable to
equity holders of the Company (thousands
of Euros)
    
    
    115,513
    
    
    
    147,972
    
    
    
    121,728Weighted average number of ordinary
shares in circulation
    
    
    212,909,162
    
    
    
    209,451,806
    
    
    
    210,707,597Basic earnings per share (Euros per share)
    
    
    0.54
    
    
    
    0.71
    
    
    
    0.58
 The weighted average number of ordinary shares issued is determined as follows:
 Number of shares2010
    
    2009
    
    2008Issued ordinary shares at 1 January
    
    
    213,011,573
    
    
    
    210,653,277
    
    
    
    210,964,436Effect of own shares
    
    
    (102,411
    )
    
    
    (1,201,471
    )
    
    
    (256,839
    )212,909,162
    
    
    
    209,451,806
    
    
    
    210,707,597
 Diluted earnings per share are calculated by dividing profit attributable to
shareholders of the Company by the weighted average number of ordinary shares in circulation
considering the diluting effects of potential ordinary shares. At 31 December 2010, 2009 and
2008 basic and diluted earnings per share are the same as no potential diluting effects
exist.
 
 (19) Non-controlling Interests
 Details of non-controlling interests and movement during the year ended 31 December 2009
are as follows:
 Thousands of EurosBalances at
    
    
    
    
    
    Business
    
    
    
    
    
    Translation
    
    Balances at31/12/08
    
    Additions
    
    combinations
    
    Dividends
    
    differences
    
    31/12/09Grifols (Thailand) Pte Ltd
    
    
    977
    
    
    
    308
    
    
    
    
    
    
    
    (112
    )
    
    
    30
    
    
    
    1,203Grifols Malaysia Sdn Bhd
    
    
    273
    
    
    
    35
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    303Woolloomooloo Holdings Pty
Ltd.
    
    
    
    
    
    
    (745
    )
    
    
    9,876
    
    
    
    (106
    )
    
    
    1,626
    
    
    
    10,6511,250
    
    
    
    (402
    )
    
    
    9,876
    
    
    
    (218
    )
    
    
    1,651
    
    
    
    12,157(note 3(b))
 71




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Details of non-controlling interests and movement during the year ended 31 December 2010
are as follows:
 Thousands of EurosBalances at
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/09
    
    Additions
    
    Dividends
    
    differences
    
    31/12/10Grifols (Thailand) Pte Ltd
    
    
    1,203
    
    
    
    367
    
    
    
    (108
    )
    
    
    255
    
    
    
    1,717Grifols Malaysia Sdn Bhd
    
    
    303
    
    
    
    302
    
    
    
    
    
    
    
    76
    
    
    
    681Woolloomooloo Holdings Pty Ltd.
    
    
    10,651
    
    
    
    (915
    )
    
    
    (158
    )
    
    
    2,374
    
    
    
    11,95212,157
    
    
    
    (246
    )
    
    
    (266
    )
    
    
    2,705
    
    
    
    14,350
 
 (20) Grants
 Details are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Capital grants
    
    
    1,830
    
    
    
    2,025Interest-rate grants (preference loans)
    
    
    258
    
    
    
    286Grants
    
    
    2,088
    
    
    
    2,311
 72




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Details of capital grants are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Total amount of capital grant:Prior to 1995
    
    
    330
    
    
    
    3301995
    
    
    627
    
    
    
    6271996
    
    
    54
    
    
    
    541997
    
    
    426
    
    
    
    4261998
    
    
    65
    
    
    
    651999
    
    
    42
    
    
    
    422000
    
    
    181
    
    
    
    1812001
    
    
    214
    
    
    
    2142002
    
    
    626
    
    
    
    6262004
    
    
    1,940
    
    
    
    1,9402005
    
    
    35
    
    
    
    352006
    
    
    35
    
    
    
    352007
    
    
    33
    
    
    
    332008
    
    
    124
    
    
    
    1242009
    
    
    742
    
    
    
    742Current period
    
    
    323
    
    
    
    5,797
    
    
    
    5,474Less, revenues recognised:Prior years
    
    
    (3,140
    )
    
    
    (2,444
    )Current year
    
    
    (612
    )
    
    
    (696
    )(3,752
    )
    
    
    (3,140
    )Translation differences
    
    
    (215
    )
    
    
    (309
    )Net value of capital grants
    
    
    1,830
    
    
    
    2,025
 At 31 December 2010 interest-rate grants (preference loans) include Euros 258 thousand
(Euros 286 thousand at 31 December 2009) of implicit interest on loans extended by the
Spanish Ministry of Science and Technology as these are interest free.
 73




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Movement during 2008 is as follows:
 Balances at
    
    
    
    
    
    Transfers to
    
    Balances at31/12/07
    
    Additions
    
    profit or loss
    
    31/12/08Interest-rate
grants (preference
loans)
    
    
    2,463
    
    
    
    561
    
    
    
    (2,686
    )
    
    
    338
 Movement during 2009 is as follows:
 Balances at
    
    
    
    
    
    Transfers to
    
    Balances at31/12/08
    
    Additions
    
    profit or loss
    
    31/12/09Interest-rate
grants (preference
loans)
    
    
    338
    
    
    
    440
    
    
    
    (492
    )
    
    
    286
 Movement during 2010 is as follows:
 Balances at
    
    
    
    
    
    Transfers to
    
    Balances at31/12/09
    
    Additions
    
    profit or loss
    
    31/12/10Interest-rate grants (preference loans)
    
    
    286
    
    
    
    88
    
    
    
    (116
    )
    
    
    258
 
 (21) Provisions
 Details of provisions at 31 December 2010 and 2009 are as follows:
 Thousands of EurosNon-current provisions (a)
    
    31/12/10
    
    31/12/09Provisions for pensions and similar obligations
    
    
    787
    
    
    
    595Other provisions
    
    
    591
    
    
    
    637Non-current provisions
    
    
    1,378
    
    
    
    1,232
 Thousands of EurosCurrent provisions (b)
    
    31/12/10
    
    31/12/09Trade provisions
    
    
    4,365
    
    
    
    4,702
 (a)
    
    Non-current provisions At 31 December 2010 and 2009 provisions for pensions and similar obligations mainly comprise
a provision made by certain foreign subsidiaries in respect of labour commitments with
certain employees.
 74




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Movement in non-current provisions during 2009 is as follows:
 Thousands of EurosBalances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balancesat
    
    Business
    
    
    
    
    
    
    
    
    
    Translation
    
    at31/12/08
    
    combination
    
    Reversal
    
    Cancellation
    
    differences
    
    31/12/09Non-current provisions
    
    
    3,045
    
    
    
    102
    
    
    
    (1,411
    )
    
    
    (457
    )
    
    
    (47
    )
    
    
    1,232
 Movement in non-current provisions during 2010 is as follows:
 Thousands of EurosBalances at
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/09
    
    Charge
    
    Cancellation
    
    differences
    
    31/12/10Non-current provisions
    
    
    1,232
    
    
    
    140
    
    
    
    (71
    )
    
    
    77
    
    
    
    1,378
 (b)
    
    Current provisions Movement in trade provisions during 2009 is as follows:
 Thousands of EurosBalances at
    
    Business
    
    
    
    
    
    Translation
    
    Balances at31/12/08
    
    combination
    
    Charge
    
    differences
    
    31/12/09Trade provisions
    
    
    3,830
    
    
    
    198
    
    
    
    636
    
    
    
    38
    
    
    
    4,702
 Movement in trade provisions during 2010 is as follows:
 Thousands of EurosBalances at
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/09
    
    Charge
    
    Cancellation
    
    differences
    
    31/12/10Trade provisions
    
    
    4,702
    
    
    
    41
    
    
    
    (414
    )
    
    
    36
    
    
    
    4,365
 75




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 
 (22) Financial Liabilities
 This note provides information on the contractual conditions of the loans obtained by
the Group, which are measured at amortised cost, except for the financial derivative, which
is measured at fair value. 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 32.a) Non-current financial liabilitiesDetails at 31 December 2010 and 2009 are as follows:
 Thousands of EurosNon-current financial liabilities
    
    31/12/10
    
    31/12/09
    
    31/12/08Corporate bonds (a.1.1)
    
    
    441,203
    
    
    
    410,552
    
    
    
    Bonds
    
    
    441,203
    
    
    
    410,552
    
    
    
    Club Deal (a.1.2)
    
    
    99,408
    
    
    
    195,471
    
    
    
    225,320Other loans (a.1.2)
    
    
    120,040
    
    
    
    90,961
    
    
    
    79,069Finance lease liabilities (a.1.3)
    
    
    4,734
    
    
    
    6,202
    
    
    
    7,124Loans and borrowings
    
    
    224,182
    
    
    
    292,634
    
    
    
    311,513Loans and borrowings and bonds or other
non-current marketable securities (a.1)
    
    
    665,385
    
    
    
    703,186
    
    
    
    311,513Preference loans extended by the Spanish
Ministry of Science and Technology (a.2)
    
    
    9,744
    
    
    
    11,135
    
    
    
    10,685Debt on the acquisition of the plasma
centre (a.2)
    
    
    530
    
    
    
    1,050
    
    
    
    1,098Other
    
    
    200
    
    
    
    367
    
    
    
    759Other non-current financial liabilities (a.2)
    
    
    10,474
    
    
    
    12,552
    
    
    
    12,542675,859
    
    
    
    715,738
    
    
    
    324,055
 76




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Non-current loans and borrowing arrangements are shown net of the loan arrangement
expenses which are pending amortisation:
 Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Loan arrangement expenses
    
    
    1,365
    
    
    
    2,105
    
    
    
    2,245
 (a.1) Loans and borrowings and bonds or other non-current marketable securities(a.1.1) Corporate BondsOn 21 September 2009 the Group, through Grifols, Inc., concluded the first private placement
of corporate bonds in the USA totalling US Dollars 600 million. The issue was subscribed by
22 qualified investors, 90% in US Dollars and the remaining 10% in Pounds Sterling and Euros.
The issue was structured in three tranches: US Dollars 200 million at 12 years, US Dollars
300 million at 10 years and US Dollars 100 million at 7 years, with spreads over the yields
of the 10 year US Treasury bond of 370 basis points for those issued at 12 years, 350 basis
points for those issued at 10 years and 335 basis points for 7 year bonds.A summary of corporate bonds at 31 December 2010 is as follows:
 Amount



    Duration (years)
    
    Fixed interest rate100,000
    
    
    Thousands of USD
    
    
    7
    
    
    
    6.42
    %245,000
    
    
    Thousands of USD
    
    
    10
    
    
    
    6.94
    %200,000
    
    
    Thousands of USD
    
    
    12
    
    
    
    7.14
    %10,000
    
    
    Thousands of EUR
    
    
    10
    
    
    
    6.94
    %25,000
    
    
    Thousans of GBP
    
    
    10
    
    
    
    6.94
    %
 Funds raised have enabled the Group to extend the term of its financial borrowings from
current to non-current, at the same time ensuring the availability of financial resources
required to consolidate its plans for the future. Funds raised have therefore been used to
settle current and non-current liabilities and the remaining amount has been used in current
investments classified under Cash and cash equivalents for an equivalent amount of Euros
211,539 thousand at 31 December 2010 (Euros 237,777 thousand at 31 December 2009). This
amount has been invested mainly in US Dollar deposits with financial institutions of
recognised solvency.With the issuance of the bonds, an interest rate hedge was contracted for the interest on the
10-year loan from the US government (see notes 17 (f) and 32).
 77




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 This issue of corporate bonds is subject to compliance with certain financial ratio
covenants. At 31 December 2010 and 2009 the Group complies with these financial ratio
covenants.Details of and movements related to the issue of corporate bonds are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Opening balanceIssuance of corporate bonds in the USA
    
    
    416,465
    
    
    
    409,411Transaction costs
    
    
    (5,913
    )
    
    
    (5,967
    )410,552
    
    
    
    403,444MovementsTransferred to profit and loss
    
    
    660
    
    
    
    150Corporate bonds issued in the USA, exchange differences
    
    
    (1,772
    )
    
    
    338Translation differences
    
    
    31,763
    
    
    
    6,620Closing balanceCorporate bonds issued in the USA
    
    
    446,918
    
    
    
    416,465Transaction costs
    
    
    (5,715
    )
    
    
    (5,913
    )441,203
    
    
    
    410,552
 (a.1.2) Other non-current loans and borrowingsDetails of the terms and conditions of non-current loans and borrowings at 31 December 2010
and 2009 are included in Appendix IV, which forms an integral part of these notes to the
consolidated financial statements.At 26 May 2008 a Club Deal refinancing agreement was signed with 24 financial entities for
Euros 350 million (including the option to draw down a tranche of the loan in US Dollars), in
order to refinance the non-current syndicated loan then existing. This loan provided the
Group with a significant margin for leverage to carry out planned investment programmes.This syndicated loan, which matures on 26 May 2013, is subject to compliance with certain
financial ratio covenants. In accordance with the agreed-upon conditions, the level of
compliance with financial ratios and levels is determined at year end. The Company is
required to provide financial information to the lending banks within the six-month period
subsequent to 31 December of each year for the duration of the contract.
 78




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 In 2009 the 24 financial entities and the Company unanimously agreed to a novation of the
syndicated loan. The net financial debt/equity ratio was replaced by the minimum equity
ratio. This replacement unifies all syndicated loan ratios with the bond issuance carried out
by the Group in the USA.At 31 December 2010 and 2009 the Group fulfilled the financial covenants established in the
syndicated loan contract.(a.1.3) Finance lease liabilitiesDetails of minimum payments and the current finance lease liabilities, by maturity date, are
as follows:
 Thousands of Euros31/12/10
    
    31/12/09Current
    
    Non-current
    
    Current
    
    Non-currentMinimum payments
    
    
    3,552
    
    
    
    5,089
    
    
    
    5,088
    
    
    
    6,675Interest
    
    
    (272
    )
    
    
    (355
    )
    
    
    (354
    )
    
    
    (473
    )Present value
    
    
    3,280
    
    
    
    4,734
    
    
    
    4,734
    
    
    
    6,202
 Thousands of Euros31/12/10
    
    31/12/09Minimum
    
    
    
    
    
    
    
    
    
    Minimum
    
    
    
    
    
    Presentpayments
    
    Interest
    
    Present value
    
    payments
    
    Interest
    
    valueMaturity at:Less than one year
    
    
    3,552
    
    
    
    272
    
    
    
    3,280
    
    
    
    5,088
    
    
    
    354
    
    
    
    4,734Two years
    
    
    2,411
    
    
    
    161
    
    
    
    2,250
    
    
    
    3,364
    
    
    
    200
    
    
    
    3,164Three years
    
    
    1,271
    
    
    
    96
    
    
    
    1,175
    
    
    
    1,382
    
    
    
    114
    
    
    
    1,268Four years
    
    
    763
    
    
    
    50
    
    
    
    713
    
    
    
    831
    
    
    
    72
    
    
    
    759Five years
    
    
    314
    
    
    
    23
    
    
    
    291
    
    
    
    577
    
    
    
    41
    
    
    
    536More than five years
    
    
    330
    
    
    
    25
    
    
    
    305
    
    
    
    521
    
    
    
    46
    
    
    
    475Total
    
    
    8,641
    
    
    
    627
    
    
    
    8,014
    
    
    
    11,763
    
    
    
    827
    
    
    
    10,936
 79




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 (a.1.4) Maturity of non-current loans and borrowings and bondsDetails of maturity of non-current loans and borrowings and bonds at 31 December 2010 and
2009 are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Maturity at:Two years
    
    
    85,171
    
    
    
    81,388Three years
    
    
    51,582
    
    
    
    79,696Four years
    
    
    17,936
    
    
    
    75,905Five years
    
    
    17,548
    
    
    
    12,506More than five years
    
    
    493,148
    
    
    
    453,691665,385
    
    
    
    703,186
 (a.2) Other non-current financial liabilitiesDetails of the interest-free preference loans extended by the Spanish Ministry of Science and
Technology to various group companies are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Date
    
    Amount
    
    Non-
    
    
    
    
    
    Non-Company
    
    awarded
    
    awarded
    
    current
    
    Current
    
    current
    
    CurrentInstituto Grifols S.A
    
    
    31/01/2001
    
    
    
    637
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86Instituto Grifols S.A
    
    
    13/02/2002
    
    
    
    691
    
    
    
    
    
    
    
    94
    
    
    
    89
    
    
    
    94Instituto Grifols S.A
    
    
    17/01/2003
    
    
    
    1,200
    
    
    
    157
    
    
    
    165
    
    
    
    307
    
    
    
    165Instituto Grifols S.A
    
    
    13/11/2003
    
    
    
    2,000
    
    
    
    520
    
    
    
    279
    
    
    
    762
    
    
    
    279Instituto Grifols S.A
    
    
    17/01/2005
    
    
    
    2,680
    
    
    
    1,031
    
    
    
    375
    
    
    
    1,345
    
    
    
    375Instituto Grifols S.A
    
    
    29/12/2005
    
    
    
    2,100
    
    
    
    1,025
    
    
    
    288
    
    
    
    1,253
    
    
    
    288Instituto Grifols S.A
    
    
    29/12/2006
    
    
    
    1,700
    
    
    
    1,015
    
    
    
    234
    
    
    
    1,190
    
    
    
    234Instituto Grifols S.A
    
    
    27/12/2007
    
    
    
    1,700
    
    
    
    1,164
    
    
    
    232
    
    
    
    1,324
    
    
    
    Instituto Grifols S.A
    
    
    31/12/2008
    
    
    
    1,419
    
    
    
    1,175
    
    
    
    
    
    
    
    1,131
    
    
    
    Instituto Grifols S.A
    
    
    16/01/2009
    
    
    
    1,540
    
    
    
    1,294
    
    
    
    
    
    
    
    1,249
    
    
    
    Laboratorios Grifols, S.A
    
    
    20/03/2001
    
    
    
    219
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30Laboratorios Grifols, S.A
    
    
    29/01/2002
    
    
    
    210
    
    
    
    
    
    
    
    29
    
    
    
    27
    
    
    
    29Laboratorios Grifols, S.A
    
    
    15/01/2003
    
    
    
    220
    
    
    
    29
    
    
    
    30
    
    
    
    56
    
    
    
    30Laboratorios Grifols, S.A
    
    
    26/09/2003
    
    
    
    300
    
    
    
    76
    
    
    
    41
    
    
    
    111
    
    
    
    41Laboratorios Grifols, S.A
    
    
    22/10/2004
    
    
    
    200
    
    
    
    77
    
    
    
    28
    
    
    
    100
    
    
    
    28Laboratorios Grifols, S.A
    
    
    20/12/2005
    
    
    
    180
    
    
    
    88
    
    
    
    25
    
    
    
    107
    
    
    
    25Laboratorios Grifols, S.A
    
    
    29/12/2006
    
    
    
    400
    
    
    
    233
    
    
    
    54
    
    
    
    273
    
    
    
    54Laboratorios Grifols, S.A
    
    
    27/12/2007
    
    
    
    360
    
    
    
    212
    
    
    
    42
    
    
    
    242
    
    
    
    Laboratorios Grifols, S.A
    
    
    31/12/2008
    
    
    
    600
    
    
    
    497
    
    
    
    
    
    
    
    478
    
    
    
    Diagnostic Grifols, S.A
    
    
    27/11/2008
    
    
    
    857
    
    
    
    358
    
    
    
    129
    
    
    
    468
    
    
    
    129Diagnostic Grifols, S.A
    
    
    25/05/2010
    
    
    
    203
    
    
    
    116
    
    
    
    31
    
    
    
    
    
    
    
    Grifols Engineering, S.A.
    
    
    21/04/2009
    
    
    
    524
    
    
    
    427
    
    
    
    34
    
    
    
    447
    
    
    
    Grifols Engineering, S.A.
    
    
    21/04/2009
    
    
    
    203
    
    
    
    165
    
    
    
    13
    
    
    
    176
    
    
    
    Grifols Engineering, S.A.
    
    
    28/01/2010
    
    
    
    100
    
    
    
    85
    
    
    
    
    
    
    
    
    
    
    
    20,243
    
    
    
    9,744
    
    
    
    2,123
    
    
    
    11,135
    
    
    
    1,887
 80




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 During 2010 the implicit borrowing costs taken to profit and loss amount to Euros 567
thousand (Euros 616 thousand in 2009 and Euros 516 thousand in 2008) (see note 28).
 At 31 December 2010, this caption also includes Euros 555 thousand (Euros 1,133 thousand at
31 December 2009) comprising the Euros equivalent of the debt in US Dollars payable in the
long term to Amerihealth Plasma, LLC for the plasma centre acquired in the USA. Deferred
finance expenses resulting from this transaction amount to Euros 25 thousand (Euros 83
thousand at 31 December 2009) and are deducted from the aforementioned amount. Other current
financial liabilities include the current portion of this debt which amounts to Euros 637
thousand (Euros 442 thousand at 31 December 2009).
 Details of the maturity of other non-current financial liabilities are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Maturity at:Two years
    
    
    2,964
    
    
    
    2,632Three years
    
    
    2,159
    
    
    
    2,883Four years
    
    
    1,989
    
    
    
    2,026Five years
    
    
    1,266
    
    
    
    1,867More than five years
    
    
    2,096
    
    
    
    3,14410,474
    
    
    
    12,552
 81




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 b) Current financial liabilities
  Thousands of EurosCurrent financial liabilities
    
    31/12/10
    
    31/12/09Bonds (b.1.1)
    
    
    8,235
    
    
    
    6,407Interest of issue corporate bonds in the USA (b.1.1)
    
    
    7,207
    
    
    
    6,716Bonds
    
    
    15,442
    
    
    
    13,123Club Deal (b.1.2)
    
    
    66,250
    
    
    
    33,014Other loans (b.1.2)
    
    
    106,663
    
    
    
    63,120Finance lease liabilities (a.1.3)
    
    
    3,280
    
    
    
    4,734Loans and borrowings
    
    
    176,193
    
    
    
    100,868Loans and borrowings and bonds and other marketable
securities (b.1)
    
    
    191,635
    
    
    
    113,991Financial derivatives (note 32)
    
    
    8,560
    
    
    
    3,333Preference loans extended by the Spanish Ministry of
Science and Technology (a.2)
    
    
    2,123
    
    
    
    1,887Receivables from social security affiliated entities
transferred to a financial institution (b.2)
    
    
    6,503
    
    
    
    5,459Debt on the acquisition of the plasma centre (a.2)
    
    
    637
    
    
    
    442Debt with Novartis (b.2)
    
    
    
    
    
    
    779Guarantee deposits received
    
    
    149
    
    
    
    59Other current financial liabilities
    
    
    264
    
    
    
    271Other current financial liabilities (b.2)
    
    
    18,236
    
    
    
    12,230209,871
    
    
    
    126,221
  Thousands of Euros31/12/10
    
    31/12/09Loan arrangement expenses
    
    
    707
    
    
    
    825
  82




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 (b.1) Loans and borrowings and bonds or other current marketable securities
 (b.1.1) Bonds
  Thousands of Euros31/12/10
    
    31/12/09Promissory notes issued to bearer
    
    
    8,373
    
    
    
    6,510Interest pending accrual on promissory notes issued to bearer
    
    
    (138
    )
    
    
    (103
    )Interest accrued on corporate bonds
    
    
    7,207
    
    
    
    6,71615,442
    
    
    
    13,123
   31/12/09PromissoryNominal
    
    
    
    
    
    notes
    
    Interest pendingamount
    
    
    
    
    
    subscribed
    
    accrualMaturity
    
    (Thousands
    
    Interest
    
    (Thousands
    
    (Thousands ofIssue date
    
    date
    
    of Euros)
    
    rate
    
    of Euros)
    
    Euros)Issue of bearer
promissory
notes
    
    
    05/05/09
    
    
    
    05/05/10
    
    
    
    3.000
    
    
    
    4.75
    %
    
    
    6,510
    
    
    
    (103
    )
 31/12/10PromissoryNominal
    
    
    
    
    
    notes
    
    Interest pendingamount
    
    
    
    
    
    subscribed
    
    accrualMaturity
    
    (Thousands
    
    Interest
    
    (Thousands
    
    (Thousands ofIssue date
    
    date
    
    of Euros)
    
    rate
    
    of Euros)
    
    Euros)Issue of bearer
promissory
notes
    
    
    05/05/10
    
    
    
    05/05/11
    
    
    
    3.000
    
    
    
    5.00
    %
    
    
    8,373
    
    
    
    (138
    )
 83




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 (b.1.2) Other current loans and borrowings
  Interest
    
    Thousands of Eurosrate (*)
    
    Drawn downMin - max
    
    31/12/10
    
    31/12/09Loans in:US Dollars
    
    
    5.00
    %
    
    
    1,384
    
    
    
    3,010Euros
    
    
    1.17% - 6
    %
    
    
    143,990
    
    
    
    73,664Other currencies
    
    TIIE+2% -15%
    
    
    26,368
    
    
    
    18,449171,742
    
    
    
    95,123Discounted trade notes
(note 13)
    
    
    1.4-4.69
    %
    
    
    1,396
    
    
    
    1,298Current interest on
loans and borrowings
    
    
    
    
    
    
    483
    
    
    
    538Finance lease payables
    
    
    
    
    
    
    3,552
    
    
    
    5,088177,173
    
    
    
    102,047Less, current portion of deferred finance expenses for
leasing
    
    
    (272
    )
    
    
    (354
    )Less, current portion of loan arrangement expenses
    
    
    (708
    )
    
    
    (825
    )176,193
    
    
    
    100,868
 
 (*)
    
    Loans accrue variable interest rates.  (b.2) Other current financial liabilities
   84




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 
 (23) Trade and Other Payables
  Thousands of Euros31/12/10
    
    31/12/09Suppliers and trade payables
    
    
    160,678
    
    
    
    120,887Other
    
    
    
    
    
    
    22Suppliers
    
    
    160,678
    
    
    
    120,909Public entities, other payables
    
    
    11,928
    
    
    
    17,832Other trade payables
    
    
    11,928
    
    
    
    17,832Current income tax liabilities
    
    
    4,172
    
    
    
    3,258176,778
    
    
    
    141,999
 Suppliers
   Thousands of Euros31/12/10
    
    31/12/09CurrencyUS Dollar
    
    
    58,932
    
    
    
    31,377Chilean Peso
    
    
    1,490
    
    
    
    894Swiss Franc
    
    
    897
    
    
    
    686Czech Crown
    
    
    568
    
    
    
    380Brazilian Real
    
    
    428
    
    
    
    621Pound Sterling
    
    
    405
    
    
    
    266Other currencies
    
    
    665
    
    
    
    1,419
  85




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Public entities, other payables
  Thousands of Euros31/12/10
    
    31/12/09Taxation authorities, VAT/Canary Islands Tax
    
    
    3,472
    
    
    
    3,292Taxation authorities, withholdings
    
    
    3,119
    
    
    
    8,184Social Security
    
    
    3,246
    
    
    
    3,027Other public entities
    
    
    2,091
    
    
    
    3,329Public entities, other payables
    
    
    11,928
    
    
    
    17,832
  Current tax liabilities
  Thousands of Euros31/12/10
    
    31/12/09Taxation authorities, income tax:Current year
    
    
    4,161
    
    
    
    3,185Prior years
    
    
    11
    
    
    
    73Current tax liabilities
    
    
    4,172
    
    
    
    3,258
 
 (24) Other Current Liabilities
  Thousands of Euros31/12/10
    
    31/12/09Salaries payable
    
    
    28,321
    
    
    
    24,367Other payables
    
    
    2,629
    
    
    
    1,754Other current liabilities
    
    
    30,950
    
    
    
    26,121
 86




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 
 (25) Revenues
   %31/12/10
    
    31/12/09
    
    31/12/08Bioscience
    
    
    78
    %
    
    
    76
    %
    
    
    76
    %Diagnostics
    
    
    11
    %
    
    
    10
    %
    
    
    10
    %Hospital
    
    
    9
    %
    
    
    10
    %
    
    
    10
    %Raw materials
    
    
    1
    %
    
    
    3
    %
    
    
    3
    %Others
    
    
    1
    %
    
    
    1
    %
    
    
    1
    %100
    %
    
    
    100
    %
    
    
    100
    %
  %31/12/10
    
    31/12/09
    
    31/12/08Spain
    
    
    23
    %
    
    
    25
    %
    
    
    24
    %European Union
    
    
    21
    %
    
    
    22
    %
    
    
    26
    %United States
    
    
    34
    %
    
    
    32
    %
    
    
    36
    %Rest of the world
    
    
    22
    %
    
    
    21
    %
    
    
    14
    %100
    %
    
    
    100
    %
    
    
    100
    %
  Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08CurrencyUS Dollar
    
    
    405,439
    
    
    
    349,064
    
    
    
    304,445Pound Sterling
    
    
    36,199
    
    
    
    33,668
    
    
    
    36,668Chilean Peso
    
    
    28,760
    
    
    
    21,083
    
    
    
    16,047Mexican Peso
    
    
    25,652
    
    
    
    36,472
    
    
    
    29,182Brazilian Real
    
    
    21,949
    
    
    
    21,262
    
    
    
    15,916Australian Dollar
    
    
    13,950
    
    
    
    6,387
    
    
    
    Czech Crown
    
    
    13,698
    
    
    
    12,863
    
    
    
    12,568Argentinean Peso
    
    
    13,122
    
    
    
    11,323
    
    
    
    9,145Polish Zloty
    
    
    11,668
    
    
    
    13,525
    
    
    
    Other currency
    
    
    18,989
    
    
    
    18,013
    
    
    
    13,062
 87




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 
 (26) Personnel Expenses
  Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Wages and salaries
    
    
    232,174
    
    
    
    219,803
    
    
    
    191,644Contributions to pension plans (note 31)
    
    
    1,615
    
    
    
    1,571
    
    
    
    1,365Other social charges
    
    
    8,615
    
    
    
    8,072
    
    
    
    6,310Social Security
    
    
    46,604
    
    
    
    43,722
    
    
    
    38,840289,008
    
    
    
    273,168
    
    
    
    238,159
 
 (27) Other Operating Income and Expenses
 Other operating expenses
  Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Changes in trade provisions
(notes 21 (b) and 32)
    
    
    398
    
    
    
    1,348
    
    
    
    561Professional services (note 15)
    
    
    40,530
    
    
    
    25,266
    
    
    
    22,874Commissions
    
    
    8,038
    
    
    
    7,711
    
    
    
    7,075Supplies and other materials
    
    
    30,544
    
    
    
    28,859
    
    
    
    26,874Operating leases (note 30 (a))
    
    
    19,272
    
    
    
    17,364
    
    
    
    16,583Freight
    
    
    20,956
    
    
    
    20,518
    
    
    
    19,485Repairs and maintenance costs
    
    
    22,480
    
    
    
    21,365
    
    
    
    17,642Advertising
    
    
    14,708
    
    
    
    15,580
    
    
    
    16,872Insurance
    
    
    10,807
    
    
    
    10,803
    
    
    
    10,367Royalties and service charges
    
    
    884
    
    
    
    4,954
    
    
    
    8,760Travel expenses
    
    
    12,742
    
    
    
    11,935
    
    
    
    14,210External services
    
    
    24,603
    
    
    
    25,024
    
    
    
    21,891Others
    
    
    14,256
    
    
    
    12,654
    
    
    
    9,094Other operating expenses
    
    
    220,218
    
    
    
    203,381
    
    
    
    192,288
  88




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Other operating income
  Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Income from insurance claims
    
    
    771
    
    
    
    807
    
    
    
    584Grants
    
    
    307
    
    
    
    378
    
    
    
    497Other income
    
    
    118
    
    
    
    258
    
    
    
    208Other operating income
    
    
    1,196
    
    
    
    1,443
    
    
    
    1,289
 
 (28) Finance Income and Expense
  Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Interest from Social Security
    
    
    2,876
    
    
    
    6,510
    
    
    
    2,212Other finance income
    
    
    1,650
    
    
    
    557
    
    
    
    470Finance income
    
    
    4,526
    
    
    
    7,067
    
    
    
    2,682Syndicated loan (other finance expenses)
    
    
    (1,172
    )
    
    
    (747
    )
    
    
    (1,849
    )Syndicated loan (interest)
    
    
    (3,303
    )
    
    
    (6,289
    )
    
    
    (12,152Finance expenses from sale of receivables (note 13)
    
    
    (5,378
    )
    
    
    (2,531
    )
    
    
    (2,128
    )Interests costs of Corporate bonds issued in the USA (note 22)
    
    
    (31,923
    )
    
    
    (6,766
    )
    
    
    Implicit interest on preference loans (note 22 (a2))
    
    
    (567
    )
    
    
    (616
    )
    
    
    (516
    )Capitalised interest
    
    
    2,399
    
    
    
    1,278
    
    
    
    Other finance expenses
    
    
    (9,716
    )
    
    
    (11,416
    )
    
    
    (12,660
    )Finance expenses
    
    
    (49,660
    )
    
    
    (27,087
    )
    
    
    (29,305
    )Change in fair value of financial derivatives (note 32)
    
    
    (7,593
    )
    
    
    (587
    )
    
    
    (1,268
    )Impairment and profit / (losses) on disposal of financial
instruments
    
    
    91
    
    
    
    (245
    )
    
    
    Exchange differences
    
    
    1,616
    
    
    
    (1,733
    )
    
    
    (2,825
    )Net finance income and expense
    
    
    (51,020
    )
    
    
    (22,585
    )
    
    
    (30,716
    )
 89




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
  
 (29) Taxation
    a) Reconciliation of accounting and taxable income
  Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Profit for the year before income tax
    
    
    157,784
    
    
    
    203,994
    
    
    
    172,269Tax at 30%
    
    
    47,335
    
    
    
    61,198
    
    
    
    51,680Permanent differences
    
    
    2,300
    
    
    
    1,935
    
    
    
    2,678Effect of different tax rates
    
    
    3,346
    
    
    
    5,159
    
    
    
    4,366Tax credits for research and development
    
    
    (7,281
    )
    
    
    (8,106
    )
    
    
    (5,403
    )Other tax credits (deductions)
    
    
    (3,516
    )
    
    
    (4,548
    )
    
    
    (4,199
    )Other income tax expenses
    
    
    333
    
    
    
    786
    
    
    
    1,031Total income tax expense
    
    
    42,517
    
    
    
    56,424
    
    
    
    50,153Deferred tax expenses
    
    
    15,547
    
    
    
    8,832
    
    
    
    6,987Current income tax
    
    
    26,970
    
    
    
    47,592
    
    
    
    43,166Total
    
    
    42,517
    
    
    
    56,424
    
    
    
    50,153
 90




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Deferred tax assets and liabilities
  Tax Effect31/12/10
    
    31/12/09
    
    31/12/08Thousands of EurosAssetsTax credits (deductions)
    
    
    4,830
    
    
    
    5,992
    
    
    
    13,215Tax loss carryforwards
    
    
    1,233
    
    
    
    88
    
    
    
    163Fixed assets, amortisation and depreciation
    
    
    998
    
    
    
    728
    
    
    
    299Unrealised margins on inventories
    
    
    19,256
    
    
    
    19,814
    
    
    
    17,222Provision for bad debts
    
    
    395
    
    
    
    444
    
    
    
    281Inventories
    
    
    235
    
    
    
    225
    
    
    
    1,004Cash flow hedges
    
    
    1,120
    
    
    
    1,247
    
    
    
    Other provisions
    
    
    4,297
    
    
    
    2,439
    
    
    
    825Others
    
    
    2,525
    
    
    
    2,418
    
    
    
    1,18734,889
    
    
    
    33,395
    
    
    
    34,297LiabilitiesGoodwill
    
    
    17,948
    
    
    
    15,186
    
    
    
    12,423Revaluations of assets
    
    
    15,210
    
    
    
    15,011
    
    
    
    15,345Fixed assets, amortisation and depreciation
    
    
    40,520
    
    
    
    23,873
    
    
    
    14,028Finance leases
    
    
    3,396
    
    
    
    3,634
    
    
    
    3,647Inventories
    
    
    
    
    
    
    
    
    
    
    2,041Provision for investments
    
    
    696
    
    
    
    873
    
    
    
    2,322Others
    
    
    1,371
    
    
    
    1,748
    
    
    
    2,16379,141
    
    
    
    60,325
    
    
    
    51,969
 91




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
  Thousands of EurosDeferred tax assets
    
    2010
    
    2009
    
    2008Balance at 1 January
    
    
    33,395
    
    
    
    34,297
    
    
    
    34,110Movements during the year
    
    
    865
    
    
    
    (1,478
    )
    
    
    687Business combinations (note 3)
    
    
    
    
    
    
    500
    
    
    
    Adjustments for changes in tax rate through profit and loss
    
    
    
    
    
    
    69
    
    
    
    (514
    )Translation differences
    
    
    629
    
    
    
    7
    
    
    
    14Balance at 31 December
    
    
    34,889
    
    
    
    33,395
    
    
    
    34,297
 Thousands of EurosDeferred tax liabilities
    
    2010
    
    2009
    
    2008Balance at 1 January
    
    
    60,325
    
    
    
    51,969
    
    
    
    43,794Movements during the year
    
    
    16,537
    
    
    
    7,423
    
    
    
    6,721Business combinations (note 3)
    
    
    
    
    
    
    1,761
    
    
    
    Adjustments for changes in tax rate through profit and loss
    
    
    
    
    
    
    
    
    
    
    439Translation differences
    
    
    2,279
    
    
    
    (828
    )
    
    
    1,015Balance at 31 December
    
    
    79,141
    
    
    
    60,325
    
    
    
    51,969
  92




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
  Thousands of EurosTax effect31/12/10
    
    31/12/09
    
    31/12/08Available-for-sale financial
assets
    
    
    
    
    
    
    (69
    )
    
    
    3Cash flow hedges (note 17 (g))
    
    
    127
    
    
    
    1,247
    
    
    
    127
    
    
    
    1,178
    
    
    
    3
   Year of origin
    
    2010
    
    2009
    
    Applicable through2008
    
    
    101
    
    
    
    417
    
    
    
    20232009
    
    
    500
    
    
    
    5,575
    
    
    
    20242010
    
    
    4,229
    
    
    
    
    
    
    
    20254,830
    
    
    
    5,992
   93




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
    c) Years open to inspection
   
    
    On 30 June 2010, in relation to the inspection underway on Grifols, S.A., Instituto
Grifols, S.A., Laboratorios Grifols, S.A. and Movaco, S.A., the Group has received
assessments for income tax, value added tax (VAT), personal income tax and withholding
tax on investment income. The total amount settled was Euros 586 thousand and the income
tax expense amounts to Euros 1,257 thousand.
    
    During 2010 the tax inspection on the income tax, VAT and withholdings for 2006 of
Grifols Italia, S.p.A. was concluded, implying no significant payment for the Group.
    
    Logística Grifols, S.A. de CV: Tax ruling on the financial statements for 2005
and 2006. Group management does not expect any significant liabilities to arise as a result
of this inspection.
 94




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 
    
    At 30 June 2010 Grifols, Inc. and subsidiaries received notification of income tax
inspection for the years closed 31 December 2006, 2007 and 2008. Due to, among other
reasons, differences in the interpretation of prevailing tax legislation, the Groups
directors have set up a provision of Euros 1,860 thousand, which is recognised under
income tax in the income statement and under public entities, other  in the balance
sheet (see note 23).
    
    Grifols Brasil, Lda.: Tax on circulation of goods and services (ICMS) for 2006 to 2010.
Group management does not expect that any significant liability will arise from this
inspection.
 During 2009 the following events arose in relation to the tax inspections:
 
    
    Notification of the completion of the inspection of Biomat USA, Inc., resulting in a
favourable conclusion.
 During 2008 the following events had arisen in relation to the tax inspections performed in
Group companies:
 
    
    Notification of the favourable completion of the inspection of Grifols
Deutschland, except for Euros 150 thousand which was taken to profit and loss in
2008.
    
    Notification of the favourable completion of the inspection of Grifols, Inc.,
Grifols Biologicals, Inc., Grifols USA, Inc. and Plasmacare, Inc.
 
 (30) Operating Leases
 (a) Operating leases (as lessee)
 At 31 December 2010 and 2009 the Group leased buildings from third parties under operating
leases.The Group has warehouses and buildings contracted under operating lease. The duration of
these lease contracts ranges from between 1 to 30 years. Contracts may be renewed on
termination. Lease instalments are adjusted periodically in accordance with the price index
established in each contract. One Group company has entered into lease contracts which
include contingent rents. These contingent rents have been based on production capacity,
surface area used and the real estate market and are expensed on a straight line basis.
 95




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Operating lease instalments of Euros 19,272 thousand have been recognised as an expense for
the year at 31 December 2010 (Euros 17,364 thousand at 31 December 2009 and 16,583 thousand
at 31 December 2008) (see note 27).Future minimum payments on non-cancellable operating leases at 31 December are as follows:
 Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Maturity:Up to 1 year
    
    
    13,769
    
    
    
    10,098
    
    
    
    9,575Between 1 and 5 years
    
    
    31,003
    
    
    
    25,943
    
    
    
    24,919More than 5 years
    
    
    7,856
    
    
    
    8,084
    
    
    
    7,192Total future minimum payments
    
    
    52,628
    
    
    
    44,125
    
    
    
    41,686
 (b) Operating leases (as lessor)
 The Group has a building leased to third parties under an operating lease at 31 December
2010, 2009 and 2008. Future minimum payments receivable under non-cancellable operating
leases are as follows:
 Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Maturity:Up to 1 year
    
    
    64
    
    
    
    91
    
    
    
    69Between 1 and 5 years
    
    
    21
    
    
    
    56
    
    
    
    50More than 5 years
    
    
    
    
    
    
    10
    
    
    
    Total future minimum payments
    
    
    85
    
    
    
    157
    
    
    
    119
 This contract does not include contingent rents or purchase options. Income of Euros 96
thousand has been recognised in 2010 (Euros 85 thousand in 2009 and Euros 70 thousand in
2008).
 
 (31) Other Commitments with Third Parties and Other Contingent Liabilities
 (a) Guarantees
 The Group has not extended any security or bank guarantees to third parties.
 96




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 (b) Obligations with personnel
 As described in note 4 (q) section (i), Spanish companies of the Group are obliged to
contribute to a defined contribution pension plan. Contributions made by the Group
amounted to Euros 460 thousand in 2010 (Euros 416 thousand at 31 December 2009).In successive years this contribution will be defined through labour negotiations.Some foreign subsidiaries of the Group have made contributions of Euros 1,155 thousand
to complementary pension schemes (Euros 1,155 thousand at 31 December 2009).
 (c) Judicial procedures and arbitration
 Details of legal proceedings in which the Company or Group companies are involved are as
follows:Instituto Grifols, S.A.
 
    
    Litigation was initiated in February 2000. Proceedings have been brought jointly
against the Company and another plasma fractioning company.The claimant (an individual) claimed Euros 542 thousand in damages due to the
alleged contraction of HIV and Hepatitis C.The first instance court in Cadiz fully rejected the claim against Instituto
Grifols, S.A. on 25 November 2005.An appeal was filed, which was rejected by the Cádiz Provincial Court in April 2007,
thereby confirming the companys line of defense. Notification was published on 3
February 2011 that on 19 January 2011 the Spanish High Court had fully rejected the
appeal against the Cádiz Provincial Courts decision to reject the claim against
Instituto Grifols, S.A.
    
    A claim brought against the Health Board of Castilla y León in February 2005.The defendant (an individual) claimed Euros 180 thousand in damages due to the
alleged contraction of Hepatitis C. The health authorities requested that this claim
be extended to include the Company.
 97




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Notification was published on 2 February 2011 that this appeal has been rejected on
30 December 2010. This ruling is pending confirmation, unless it is appealed in the
Spanish High Court.
    
    The Company was notified in 2007 of a claim for maximum damages of Euros 12,960
thousand filed by a group of 100 Catalan haemophiliacs against all plasma
fractionation companies. During 2008 this claim was rejected by the Courts, and the
ruling appealed by the group of haemophiliacs. Notification was published on 21
January 2011 that on 18 January 2011 the Barcelona Provincial Court had rejected
the haemophiliacs claim. This ruling is pending confirmation, unless it is
appealed in the Spanish High Court.
 Grifols Biologicals, Inc.
 
    
    Legal proceedings (consent decree) which were brought against the plasma
fractioning centre in Los Angeles.The blood plasma fractioning centre in Los Angeles is managed through consent decree
which was applied for in January 1998 to the Courts by the FDA and US Department of
Justice as a result of an infringement of FDA regulations committed by the former
owner of the centre (Alpha Therapeutic Corporation, hereinafter ATC). As a result of
this consent decree, the Los Angeles centre is subject to strict FDA audits and may
only sell products manufactured in the centre subsequent to prior authorisation.The Company cannot guarantee if or when the consent decree will be lifted.In March 2004 as a result of improvements to the centre made by the Group, the FDA
awarded several free sales certificates for the former ATC products manufactured in
this centre.Based on the current level of compliance, there are no commercial activities that
are prohibited or limited by the consent decree.
 No provision has been made for these legal issues as the Group considers that these will
not have a probable adverse impact.
 98




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 (d) Long-term materials supply contract
 The long-term supply contract for plasma signed by the Group in 2008 was terminated by
the Group in 2009 on the grounds of failure by the supplier to meet certain contractual
terms. The supplier has not accepted the arguments of the Group and both are presently
holding negotiations to settle the dispute in arbitration proceedings, the Directors of
the Group being of the opinion that the eventual settlement will not involve any
significant additional costs.
 (e) Agreement for the acquisition of Talecris Biotherapeutics Holdings Corp
(Talecris)
 On 6 June 2010 the Company entered into an agreement to acquire the American company
Talecris Biotherapeutics, which also specialises in the production of plasma-derived
biological medication, for a total of US Dollars 3,400 million.This agreement will become effective subject to approval by the Defence of Competition
authorities. In the event that this approval is not obtained, the Company will be
required to pay US Dollars 375 million as indemnity for the damages caused.The operation will be performed through a combined offer of cash and Grifols shares
which would not carry the right to vote on new share issues.The offer is made in relation to all Talecris shares and the price offered per share
amounts to US Dollars 19 in cash and 0.641 shares in Grifols without the right to vote
on new share issues. As a result of the ruling on the claim filed by certain
shareholders of Talecris in the State of Delaware against Talecris, Cerburus, Grifols
and the Agreement and Plan of Merger, appraisal rights have been granted to those
Talecris shareholders who have requested them and Grifols has undertaken to issue
500,000 shares without additional voting rights which will be distributed amongst all of
the shareholders of Talecris, except for Talecris Holdings LLC and the directors of
Talecris. As a result of this additional share issue, the share exchange equation stands
at (a) 0.641 shares without voting rights of Grifols for each Talecris share issued, at
the closing date of the transaction, held by Talecris LLC and the directors of Talecris
and (b) 0.6485 shares without voting rights of Grifols for each Talecris share issued,
at the transaction closing date, held by the remaining shareholders.On 6 June 2010 and in relation to this potential acquisition, the Company obtained
financing commitments from six financial institutions for a total of US Dollars 4,500
million. This financing would be used to cover the cash payment of the acquisition and
to refinance the existing debt.
 99




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 On 23 November 2010 the Company signed loan agreements amounting to US Dollars 3,400
million for the purchase of Talecris. This amount forms part of the US Dollars 4,500
million collateralised on 6 June 2010. Details of this collateralised senior debt are as
follows:
 
    
    Non-current syndicated financing with financial institutions: Loan repayable in
5 years totalling US Dollars 1,500 million. Margin of 375 basis points (bp) linked
to US Libor and 400 bp linked to Euribor. BB and Ba3 rating.
    
    Non-current syndicated financing with institutional investors: 6 year bullet
loan (payment of whole principal upon maturity) amounting to US Dollars 1,600
million. Margin of 425 bp linked to US Libor and 450 bp linked to Euribor. BB and
Ba3 rating.
    
    Senior revolving credit facility amounting to US Dollars 300 million. BB and
Ba3 rating.
 This debt will be effective once the Talecris purchase transaction has been completed.
 
 (32) Financial Instruments
 Classification
 Disclosure of financial instruments by nature and category is as follows:
 Thousands of Euros31/12/09FinancialAvailable-for-
    
    
    
    
    
    assets /sale financial
    
    Loans and
    
    (liabilities)held
    
    Debts andassets
    
    receivables
    
    for trading
    
    payablesNon-current financial assets
    
    
    501
    
    
    
    3,230
    
    
    
    
    
    
    
    Other current financial assets
    
    
    
    
    
    
    6,547
    
    
    
    
    
    
    
    Interest-rate swap
    
    
    
    
    
    
    
    
    
    
    (3,333
    )
    
    
    Unquoted futures
    
    
    
    
    
    
    
    
    
    
    1,670
    
    
    
    Trade and other receivables
    
    
    
    
    
    
    239,204
    
    
    
    
    
    
    
    Bank loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (382,566
    )Other financial liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21,449
    )Bonds and other securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (423,675
    )Finance lease liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10,936
    )Trade and other payables
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (120,909
    )Other current liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,754
    )501
    
    
    
    248,981
    
    
    
    (1,663
    )
    
    
    (961,289
    )
 100




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Thousands of Euros31/12/10FinancialAvailable-for-
    
    
    
    
    
    assets /sale financial
    
    Loans and
    
    (liabilities)held
    
    Debts andassets
    
    receivables
    
    for trading
    
    payablesNon-current financial assets
    
    
    535
    
    
    
    7,000
    
    
    
    
    
    
    
    Other current financial assets
    
    
    
    
    
    
    12,946
    
    
    
    
    
    
    
    Interest-rate swap
    
    
    
    
    
    
    
    
    
    
    (1,809
    )
    
    
    Unquoted futures
    
    
    
    
    
    
    
    
    
    
    (6,751
    )
    
    
    Trade and other receivables
    
    
    
    
    
    
    259,497
    
    
    
    
    
    
    
    Bank loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (392,361
    )Other financial liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (20,150
    )Bonds and other securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (456,645
    )Finance lease liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,014
    )Trade and other payables
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (160,678
    )Payables for Group companies
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,162
    )Other current liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,629
    )535
    
    
    
    279,443
    
    
    
    (8,560
    )
    
    
    (1,041,639
    )
 Net losses and gains by financial instrument category
 Details are as follows:
 Financial assets
 Thousands of Euros31/12/09Available-Assets at fair
    
    
    
    
    
    for-salevalue through
    
    Loans and
    
    financialprofit or loss
    
    receivables
    
    assets
    
    TotalFinance income at amortised cost
    
    
    
    
    
    
    7,067
    
    
    
    
    
    
    
    7,067Change in fair value
    
    
    2,015
    
    
    
    
    
    
    
    
    
    
    
    2,015Reclassification of equity to profit
or loss
    
    
    
    
    
    
    
    
    
    
    (172
    )
    
    
    (172
    )Net gains/(losses) in profit and loss
    
    
    2,015
    
    
    
    7,067
    
    
    
    (172
    )
    
    
    8,910Change in fair value
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    14Net gains in equity
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    14Total
    
    
    2,015
    
    
    
    7,067
    
    
    
    (158
    )
    
    
    8,924
 101




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Thousands of Euros31/12/10Available-Assets at fair
    
    
    
    
    
    for-salevalue through
    
    Loans and
    
    financialprofit or loss
    
    receivables
    
    assets
    
    TotalFinance income at amortised cost
    
    
    
    
    
    
    4,526
    
    
    
    
    
    
    
    4,526Change in fair value
    
    
    1,601
    
    
    
    
    
    
    
    
    
    
    
    1,601Net gains in profit and loss
    
    
    1,601
    
    
    
    4,526
    
    
    
    
    
    
    
    6,127Total
    
    
    1,601
    
    
    
    4,526
    
    
    
    
    
    
    
    6,127
 Financial liabilities
 Thousands of Euros31/12/09Liabilities atfair valuethrough profit
    
    Debts and
    
    Hedgingor loss
    
    payables
    
    derivatives
    
    TotalFinance expenses at amortised cost
    
    
    
    
    
    
    (27,087
    )
    
    
    
    
    
    
    (27,087
    )Change in fair value
    
    
    (2,602
    )
    
    
    
    
    
    
    
    
    
    
    (2,602
    )Reclassification of equity to
profit or loss
    
    
    
    
    
    
    
    
    
    
    (50
    )
    
    
    (50
    )Net losses in profit and loss
    
    
    (2,602
    )
    
    
    (27,087
    )
    
    
    (50
    )
    
    
    (29,739
    )Change in fair value
    
    
    
    
    
    
    
    
    
    
    1,998
    
    
    
    1,998Net gains in equity
    
    
    
    
    
    
    
    
    
    
    1,998
    
    
    
    1,998Total
    
    
    (2,602
    )
    
    
    (27,087
    )
    
    
    1,948
    
    
    
    (27,741
    )
 102




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Thousands of Euros31/12/10Liabilities atfair valuethrough profit
    
    Debts and
    
    Hedgingor loss
    
    payables
    
    derivatives
    
    TotalFinance expenses at amortised cost
    
    
    
    
    
    
    (49,660
    )
    
    
    
    
    
    
    (49,660
    )Change in fair value
    
    
    (9,194
    )
    
    
    
    
    
    
    
    
    
    
    (9,194
    )Reclassification of equity to
profit or loss
    
    
    
    
    
    
    
    
    
    
    (197
    )
    
    
    (197
    )Net losses in profit and loss
    
    
    (9,194
    )
    
    
    (49,660
    )
    
    
    (197
    )
    
    
    (59,051
    )Total
    
    
    (9,194
    )
    
    
    (49,660
    )
    
    
    (197
    )
    
    
    (59,051
    )
 Fair value
   Financial derivatives
 a) Derivative financial instruments at fair value through profit or loss
 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.
 103




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 The Group recognized the following swaps at 31 December 2009:
 Thousands of EurosValue atDerivatives
    
    Par
    
    31/12/09
    
    MaturityInterest rate swap
    
    
    50,000
    
    
    
    (3,333
    )
    
    
    26/07/2013(note 22)Unquoted future
    
    
    23,221
    
    
    
    1,189
    
    
    
    30/12/2010Unquoted future
    
    
    26,370
    
    
    
    481
    
    
    
    30/12/201049,591
    
    
    
    1,670(note 14)
 The Group has recognized the following derivatives at 31 December 2010:
 Thousands of EurosValue atDerivatives
    
    Par
    
    31/12/10
    
    MaturityInterest rate swap
    
    
    50,000
    
    
    
    (1,809
    )
    
    
    26/07/2013Unquoted future
    
    
    23,221
    
    
    
    (2,821
    )
    
    
    31/03/2011Unquoted future
    
    
    26,370
    
    
    
    (3,930
    )
    
    
    31/03/201149,591
    
    
    
    (6,751
    )Total
    
    
    
    
    
    
    8,560(note 22)
 During 2009 the Company contracted two unquoted futures contracts, the notional
underlying of which consists of the Companys shares, with a solvent financial
institution. The two contracts have shares 2 million and 2.2 million underlying with an
exercise price of Euros 11.6107 and Euros 11.9864, respectively. The contracts were to
expire on 30 December 2010, although the Company could terminate them prior to this
date. On 30 December 2010 it was agreed to extend the futures contract to 31 March 2011,
through a novation without liquidation under the same terms and conditions. The
contracts are settled by differences between the market value of the notional underlying
and the exercise price.
 b) Bond issue hedging derivative financial instruments
 See explanation in note 17 (f).
 104




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Credit risk
 Exposure to credit riskThe carrying amount of financial assets represents the maximum exposure to credit risk.
At 31 December 2010 and 2009 the maximum level of exposure to credit risk is as follows:
 Thousands of EurosCarrying amount
    
    Note
    
    31/12/10
    
    31/12/09Non-current financial assets
    
    
    11
    
    
    
    7,535
    
    
    
    3,731Other current financial assets
    
    
    14
    
    
    
    12,946
    
    
    
    6,547Financial derivatives
    
    
    14
    
    
    
    
    
    
    
    1,670Trade receivables
    
    
    13
    
    
    
    224,355
    
    
    
    207,840Other receivables
    
    
    13
    
    
    
    35,142
    
    
    
    31,364Cash and cash equivalents
    
    
    16
    
    
    
    239,649
    
    
    
    249,372519,627
    
    
    
    500,524
 The maximum level of exposure to risk associated with receivables at 31 December
2010 and 2009, by geographical area, is as follows.
 Thousands of EurosCarrying amount
    
    31/12/10
    
    31/12/09Domestic
    
    
    70,517
    
    
    
    70,521EU countries
    
    
    46,787
    
    
    
    47,755United States of America
    
    
    43,833
    
    
    
    29,130United Kingdom
    
    
    3,423
    
    
    
    3,054Other European countries
    
    
    3,162
    
    
    
    5,454Other regions
    
    
    56,633
    
    
    
    51,926224,355
    
    
    
    207,840
 105




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Impairment lossesDetails of the maturity of trade receivables, net of impairment provisions are as
follows:
 Thousands of Euros31/12/10
    
    31/12/09Not due
    
    
    148,838
    
    
    
    120,339Overdue less than 1 month
    
    
    21,860
    
    
    
    38,278Overdue from 1 to 4 months
    
    
    32,729
    
    
    
    25,597Overdue from 4 months to 1 year
    
    
    14,812
    
    
    
    17,357Overdue more than a year
    
    
    6,116
    
    
    
    6,269224,355
    
    
    
    207,840
 Unimpaired overdue receivables mainly relate to public entities.Movement in the provision for bad debts was as follows:
 Thousands of Euros31/12/10
    
    31/12/09
    
    31/12/08Opening balance
    
    
    4,038
    
    
    
    3,172
    
    
    
    3,285Net provisions for the year
    
    
    357
    
    
    
    712
    
    
    
    317Net cancellations for the year
    
    
    (796
    )
    
    
    (42
    )
    
    
    (249
    )Translation differences
    
    
    178
    
    
    
    196
    
    
    
    (181
    )Closing balance
    
    
    3,777
    
    
    
    4,038
    
    
    
    3,172
 An analysis of the concentration of credit risk is provided in note 5.
 106




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Liquidity riskDetails of the contracted maturity date of financial liabilities, including borrowing costs
and excluding the effects of offsetting agreements, are as follows:
 Thousands of EurosCarrying
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Moreamount at
    
    Contractual
    
    6 months
    
    6 - 12
    
    1-2
    
    2- 5
    
    than 5Carrying
amount
    
    Note
    
    31/12/09
    
    flows
    
    or less
    
    months
    
    years
    
    years
    
    yearsNon-derivative financial liabilitiesBank loans
    
    
    22
    
    
    
    382,566
    
    
    
    412,390
    
    
    
    88,707
    
    
    
    15,087
    
    
    
    83,772
    
    
    
    177,413
    
    
    
    47,411Other financial
liabilities
    
    
    22
    
    
    
    21,449
    
    
    
    27,420
    
    
    
    6,927
    
    
    
    2,582
    
    
    
    4,417
    
    
    
    10,076
    
    
    
    3,418Bonds and other
securities
    
    
    22
    
    
    
    423,675
    
    
    
    687,798
    
    
    
    27,440
    
    
    
    14,317
    
    
    
    28,634
    
    
    
    85,903
    
    
    
    531,504Finance lease
liabilities
    
    
    22
    
    
    
    10,936
    
    
    
    11,334
    
    
    
    230
    
    
    
    4,751
    
    
    
    3,294
    
    
    
    2,586
    
    
    
    473Suppliers
    
    
    23
    
    
    
    120,909
    
    
    
    120,909
    
    
    
    120,550
    
    
    
    359
    
    
    
    
    
    
    
    
    
    
    
    Other current
liabilities
    
    
    24
    
    
    
    1,754
    
    
    
    1,754
    
    
    
    1,754
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Derivative financial liabilitiesInterest rate swap
    
    
    22
    
    
    
    3,333
    
    
    
    3,333
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,333
    
    
    
    Unquoted futures
    
    
    14
    
    
    
    (1,670
    )
    
    
    (1,670
    )
    
    
    
    
    
    
    (1,670
    )
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    962,952
    
    
    
    1,263,268
    
    
    
    245,608
    
    
    
    35,426
    
    
    
    120,117
    
    
    
    279,311
    
    
    
    582,806
 107




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Thousands of EurosCarrying
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Moreamount at
    
    Contractual
    
    6 months or
    
    6 - 12
    
    1-2
    
    2- 5
    
    than 5Carrying
amount
    
    Note
    
    31/12/10
    
    flows
    
    less
    
    months
    
    years
    
    years
    
    yearsNon-derivative financial liabilitiesBank loans
    
    
    22
    
    
    
    392,361
    
    
    
    420,168
    
    
    
    117,256
    
    
    
    66,428
    
    
    
    87,986
    
    
    
    92,561
    
    
    
    55,937Other financial
liabilities
    
    
    22
    
    
    
    20,150
    
    
    
    22,361
    
    
    
    8,150
    
    
    
    2,134
    
    
    
    3,467
    
    
    
    6,283
    
    
    
    2,327Bonds and other
securities
    
    
    22
    
    
    
    456,645
    
    
    
    728,893
    
    
    
    23,771
    
    
    
    15,537
    
    
    
    31,073
    
    
    
    93,220
    
    
    
    565,292Finance lease
liabilities
    
    
    22
    
    
    
    8,014
    
    
    
    8,629
    
    
    
    2,034
    
    
    
    1,505
    
    
    
    2,412
    
    
    
    2,348
    
    
    
    330Debts with
associates
    
    
    33
    
    
    
    1,162
    
    
    
    1,162
    
    
    
    1,162
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Suppliers
    
    
    23
    
    
    
    160,678
    
    
    
    160,678
    
    
    
    160,657
    
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    Other current
liabilities
    
    
    24
    
    
    
    2,629
    
    
    
    2,629
    
    
    
    2,629
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Derivative financial liabilitiesInterest rate swap
    
    
    22
    
    
    
    1,809
    
    
    
    1,809
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,809
    
    
    
    Unquoted futures
    
    
    22
    
    
    
    6,751
    
    
    
    6,751
    
    
    
    6,751
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    1,050,199
    
    
    
    1,353,080
    
    
    
    322,410
    
    
    
    85,625
    
    
    
    124,938
    
    
    
    196,221
    
    
    
    623,886
 108




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Currency riskThe Groups exposure to currency risk is as follows:
 Thousands of Euros31/12/09EUR (*)
    
    USD (**)Trade receivables
    
    
    1,839
    
    
    
    7,308Loans to Group companies
    
    
    16,854
    
    
    
    Trade payables
    
    
    (252
    )
    
    
    (2,339
    )Payables to Group companies
    
    
    (10,365
    )
    
    
    (17,946
    )Loans with Group companies
    
    
    
    
    
    
    (10,431
    )Non-current bank loans
    
    
    (6,854
    )
    
    
    Non-current bonds
    
    
    (10,000
    )
    
    
    Balance sheet exposure
    
    
    (8,778
    )
    
    
    (23,408
    )
 
 (*)
    
    balances in Euros in
subsidiaries with USD local
currency(**)
    
    Balances in USD in
subsidiaries with Euro local
currency Thousands of Euros31/12/10EUR (*)
    
    USD (**)Trade receivables
    
    
    67
    
    
    
    3,938Receivables from Group companies
    
    
    12
    
    
    
    Loans to Group companies
    
    
    16,852
    
    
    
    Cash
    
    
    415
    
    
    
    45Trade payables
    
    
    (533
    )
    
    
    (6,200
    )Payables for Group companies
    
    
    (6,828
    )
    
    
    (21,455
    )Current bank loans
    
    
    (5,875
    )
    
    
    Non-current bank loans
    
    
    (979
    )
    
    
    (262
    )Non-current bonds
    
    
    (9,860
    )
    
    
    Balance sheet exposure
    
    
    (6,729
    )
    
    
    (23,934
    )
 
 (*)
    
    balances in Euros in
subsidiaries with USD local
currency(**)
    
    Balances in USD in
subsidiaries with Euro local
currency 109




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 The most significant exchange rates applied during the years ended 31 December 2010 and
2009 are as follows:
 Average exchange rate
    
    Closing exchange rateEuro
    
    2010
    
    2009
    
    31/12/10
    
    31/12/09USD
    
    
    1.34
    
    
    
    1.38
    
    
    
    1.34
    
    
    
    1.44
 A sensitivity analysis for foreign exchange fluctuations is as follows:Had the US Dollar strengthened by 10% against the Euro at 31 December 2010, equity would have
increased by Euros 34,973 thousand (Euros 35,795 thousand at 31 December 2009) and profit
would have decreased by Euros 3,066 thousand (at 31 December 2009 it would have decreased by
Euros 1,626 thousand). This analysis assumes that all other variables are held constant,
especially that interest rates remain constant. This analysis has been performed using the
same criteria as in 2009.A 10% weakening of the US Dollar against the Euro at 31 December 2010 and 2009 would have had
the opposite effect for the amounts shown above, all other variables being held constant.
 Interest-rate risk
 Interest-rate profileTo date, the profile of interest on interest-bearing financial instruments is as follows:
 Thousands of Euros31/12/10
    
    31/12/09Fixed-interest financial instrumentsFinancial assets
    
    
    19,220
    
    
    
    9,674Financial liabilities
    
    
    (457,521
    )
    
    
    (423,675
    )(438,301
    )
    
    
    (414,001
    )Variable-interest financial instruments
Financial liabilities
    
    
    (399,499
    )
    
    
    (393,502
    )(399,499
    )
    
    
    (393,502
    )(837,800
    )
    
    
    (807,503
    )
 110




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Sensitivity analysisA 100 basis point variation in interest rates at the presentation date of 31 December 2010
would have increased / decreased equity and consolidated profit after income tax by Euros
3,794 thousand. This analysis assumes that all other variables are held constant, especially
that exchange rates remain constant.A 100 basis point variation in interest rates at the presentation date of 31 December 2009
would have increased / decreased equity and consolidated profit after income tax by Euros
4,732 thousand.
 
 (33) Balances and Transactions with Related Parties
 Details of balances with related parties are as follows:
 Thousands of Euros31/12/10
    
    31/12/09Receivables from associates
    
    
    5
    
    
    
    812Debts with associates
    
    
    (1,162
    )
    
    
    Payables to associates
    
    
    
    
    
    
    (22
    )Payables to members of the board of directors
    
    
    (62
    )
    
    
    (121
    )Payables to other related parties
    
    
    (4,641
    )
    
    
    (3,322
    )(5,860
    )
    
    
    (2,653
    )
 Payables are included in suppliers and trade payables (see note 23).Transactions with related parties
 Transactions with related parties have been performed as part of the groups ordinary
trade and have been performed at arms length.Group transactions with related parties during 2008 were as follows:
 Thousands of EurosKeymanagement
    
    Other related
    
    Board of directorsAssociates
    
    personnel
    
    parties
    
    of the CompanyNet purchases
    
    
    125
    
    
    
    
    
    
    
    
    
    
    
    Other service expenses
    
    
    
    
    
    
    
    
    
    
    4,981
    
    
    
    180Personnel expenses
    
    
    
    
    
    
    4.253
    
    
    
    
    
    
    
    1,995125
    
    
    
    4,253
    
    
    
    4,981
    
    
    
    2,175
 111




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 Dividends received by the Board of directors of the Company amounted to Euros 2,600
thousand in 2008.Group transactions with related parties during 2009 were as follows:
 Thousands of EurosKeymanagement
    
    Other related
    
    Board of directorsAssociates
    
    personnel
    
    parties
    
    of the CompanyNet purchases
    
    
    86
    
    
    
    
    
    
    
    
    
    
    
    Net sales
    
    
    (700
    )
    
    
    
    
    
    
    
    
    
    
    Other service expenses
    
    
    
    
    
    
    
    
    
    
    7,257
    
    
    
    240Personnel expenses
    
    
    
    
    
    
    5,849
    
    
    
    
    
    
    
    2,148(614
    )
    
    
    5,849
    
    
    
    7,257
    
    
    
    2,388
 Dividends received by the Board of directors of the Company amounted to Euros 6,152
thousand in 2009.Group transactions with related parties during 2010 are as follows:
 Thousands of EurosKeymanagement
    
    Other related
    
    Board of directorsAssociates
    
    personnel
    
    parties
    
    of the CompanyNet purchases
    
    
    505
    
    
    
    
    
    
    
    
    
    
    
    Net sales
    
    
    (14
    )
    
    
    
    
    
    
    
    
    
    
    Other service expenses
    
    
    
    
    
    
    
    
    
    
    12,506
    
    
    
    180Personnel expenses
    
    
    
    
    
    
    5,839
    
    
    
    
    
    
    
    2,066491
    
    
    
    5,839
    
    
    
    12,506
    
    
    
    2,246
 Dividends received by the Board of directors of the Company amounted to Euros 2,062
thousand in 2010.Other service expenses include costs for professional services with related companies
amounting to Euros 7,590 thousand. These costs correspond to those incurred related to
the share capital increase and the issuance of debt which is expected to be carried out
relating to the acquisition of Talecris (see note 15).Non-employee board member representing shareholders interests have received no
remuneration during 2010, 2009 or 2008.
 112




---



##### 



GRIFOLS, S.A. AND SUBSIDIARIES
 Notes to the Consolidated Financial Statements
 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.
 
 (34) Subsequent Events
 On 13 January 2011, the Group closed its scheduled issue of High Yield Senior
Unsecured Notes for an amount of US Dollars 1,100 million, with a 7 year maturity period
and an annual coupon of 8.25%. This issue, together with the already completed syndicated
loan for an amount of US Dollars 3,400 million, enabled the Company to obtain US Dollars
4,500 million, the estimated maximum financing requirement for the acquisition of Talecris.At the extraordinary general shareholders meeting held on 25 January 2011, the Company
agreed to increase share capital through the issue of 87 million new non-voting shares,
which it will use in its acquisition of Talecris. These shares are scheduled to be listed
on the NASDAQ Global Market (United States) and the Automated Quotation System (mercado
continuo) (Spain).The Group has therefore completed all the tranches of the proposed financing structure to
conclude the transaction, which is still pending approval by the U.S. Federal Trade
Commission (FTC).On 5 March 2011 Grifols has extended the deadline for closing the acquisition of Talecris
Biotherapeutics Holdings Corp. and the financing and commitments with those extending the
financing to 30 June 2011.The Board of Directors of Grifols, S.A. approved these Consolidated Financial Statements on
29 March 2011.
 113




---



##### 



APPENDIX I
 GRIFOLS,S.A. AND SUBSIDIARIES
 OPERATING SEGMENTS
  Bioscience
    
    Hospital
    
    Diagnostics
    
    Raw materials
    
    Others/Unallocated
    
    Consolidated2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008Revenues
    
    
    773,372
    
    
    
    694,969
    
    
    
    617,918
    
    
    
    89,552
    
    
    
    86,328
    
    
    
    82,566
    
    
    
    109,088
    
    
    
    103,091
    
    
    
    85,705
    
    
    
    4,815
    
    
    
    22,665
    
    
    
    22,794
    
    
    
    13,903
    
    
    
    6,133
    
    
    
    5,328
    
    
    
    990,730
    
    
    
    913,186
    
    
    
    814,311Total revenues
    
    
    773,372
    
    
    
    694,969
    
    
    
    617,918
    
    
    
    89,552
    
    
    
    86,328
    
    
    
    82,566
    
    
    
    109,088
    
    
    
    103,091
    
    
    
    85,705
    
    
    
    4,815
    
    
    
    22,665
    
    
    
    22,794
    
    
    
    13,903
    
    
    
    6,133
    
    
    
    5,328
    
    
    
    990,730
    
    
    
    913,186
    
    
    
    814,311Profit/(Loss) for the segment
    
    
    306,091
    
    
    
    297,584
    
    
    
    262,229
    
    
    
    7,401
    
    
    
    8,374
    
    
    
    8,534
    
    
    
    6,793
    
    
    
    12,136
    
    
    
    13,603
    
    
    
    2,110
    
    
    
    3,850
    
    
    
    7,369
    
    
    
    7,785
    
    
    
    6,133
    
    
    
    5,328
    
    
    
    330,180
    
    
    
    328,077
    
    
    
    297,063Unallocated expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (120,497
    )
    
    
    (101,549
    )
    
    
    (94,102
    )
    
    
    (120,497
    )
    
    
    (101,549
    )
    
    
    (94,102
    )Operating profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    209,683
    
    
    
    226,528
    
    
    
    202,961Finance income/expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (51,020
    )
    
    
    (22,585
    )
    
    
    (30,716
    )Share of profit/(loss) of equity
accounted investees
    
    
    (879
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    51
    
    
    
    24
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (879
    )
    
    
    51
    
    
    
    24Income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (42,517
    )
    
    
    (56,424
    )
    
    
    (50,153
    )Profit for the year after tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    115,267
    
    
    
    147,570
    
    
    
    122,116Segment assets
    
    
    1,062,464
    
    
    
    994,245
    
    
    
    798,843
    
    
    
    85,992
    
    
    
    68,214
    
    
    
    63,660
    
    
    
    129,824
    
    
    
    82,202
    
    
    
    67,087
    
    
    
    954
    
    
    
    1,312
    
    
    
    4,379
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    1,279,234
    
    
    
    1,145,973
    
    
    
    933,969Equity accounted investments
    
    
    516
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    383
    
    
    
    374
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    516
    
    
    
    383
    
    
    
    374Unallocated assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    609,232
    
    
    
    510,821
    
    
    
    245,896
    
    
    
    609,232
    
    
    
    510,821
    
    
    
    245,896Total assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,888,982
    
    
    
    1,657,177
    
    
    
    1,180,239Segment liabilities
    
    
    74,489
    
    
    
    79,988
    
    
    
    75,120
    
    
    
    14,486
    
    
    
    12,579
    
    
    
    11,909
    
    
    
    12,573
    
    
    
    10,763
    
    
    
    9,066
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    101,548
    
    
    
    103,330
    
    
    
    96,095Unallocated liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,080,044
    
    
    
    975,319
    
    
    
    602,865
    
    
    
    1,080,044
    
    
    
    975,319
    
    
    
    602,865Total liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,181,592
    
    
    
    1,078,649
    
    
    
    698,960Other information:Amortisation and depreciation
    
    
    21,630
    
    
    
    21,893
    
    
    
    21,644
    
    
    
    4,719
    
    
    
    3,808
    
    
    
    3,725
    
    
    
    8,265
    
    
    
    5,261
    
    
    
    5,000
    
    
    
    0
    
    
    
    0
    
    
    
    67
    
    
    
    11,162
    
    
    
    8,592
    
    
    
    2,820
    
    
    
    45,776
    
    
    
    39,554
    
    
    
    33,256Expenses that do not require
cash payments
    
    
    (526
    )
    
    
    (2,059
    )
    
    
    (1,744
    )
    
    
    (12
    )
    
    
    (70
    )
    
    
    32
    
    
    
    0
    
    
    
    (1
    )
    
    
    15
    
    
    
    0
    
    
    
    0
    
    
    
    (7
    )
    
    
    0
    
    
    
    (26
    )
    
    
    (275
    )
    
    
    (538
    )
    
    
    (2,156
    )
    
    
    (1,979
    )Additions for the year of property, plant
& equipment and intangible assets
    
    
    65,344
    
    
    
    70,702
    
    
    
    65,954
    
    
    
    13,132
    
    
    
    7,524
    
    
    
    9,266
    
    
    
    15,897
    
    
    
    14,067
    
    
    
    14,078
    
    
    
    0
    
    
    
    0
    
    
    
    516
    
    
    
    11,424
    
    
    
    26,477
    
    
    
    39,879
    
    
    
    105,797
    
    
    
    118,770
    
    
    
    129,693
  1 of 2




---



##### 



Spain
    
    European Union
    
    United States
    
    Rest of the world
    
    Consolidated2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008
    
    2010
    
    2009
    
    2008Revenues
    
    
    227,947
    
    
    
    225,759
    
    
    
    190,809
    
    
    
    204,244
    
    
    
    198,832
    
    
    
    213,290
    
    
    
    339,018
    
    
    
    296,659
    
    
    
    290,666
    
    
    
    219,521
    
    
    
    191,936
    
    
    
    119,546
    
    
    
    990,730
    
    
    
    913,186
    
    
    
    814,311Assets by geographic areas
    
    
    682,473
    
    
    
    632,537
    
    
    
    532,392
    
    
    
    117,706
    
    
    
    82,245
    
    
    
    96,845
    
    
    
    936,030
    
    
    
    821,641
    
    
    
    502,797
    
    
    
    152,773
    
    
    
    120,754
    
    
    
    48,205
    
    
    
    1,888,982
    
    
    
    1,657,177
    
    
    
    1,180,239Other information:Additions for the year of property, plant &
equipment and intangible assets
    
    
    50,319
    
    
    
    65,046
    
    
    
    93,005
    
    
    
    3,972
    
    
    
    2,341
    
    
    
    999
    
    
    
    43,847
    
    
    
    43,726
    
    
    
    33,475
    
    
    
    7,659
    
    
    
    7,657
    
    
    
    2,214
    
    
    
    105,797
    
    
    
    118,770
    
    
    
    129,693
  2 of 2




---



##### 



APPENDIX II
GRIFOLS, S.A. AND SUBSIDIARIES
 Changes in Other Intangible Assets
for the year ended
31 December 2010
 Balances at
    
    
    
    
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/2009
    
    Additions
    
    Transfers
    
    Disposals
    
    differences
    
    31/12/2010Development costs
    
    
    55,414
    
    
    
    6,614
    
    
    
    0
    
    
    
    (26
    )
    
    
    69
    
    
    
    62,071Concessions, patents, licenses
brands & similar
    
    
    46,259
    
    
    
    2,410
    
    
    
    847
    
    
    
    0
    
    
    
    3,227
    
    
    
    52,743Software
    
    
    28,597
    
    
    
    5,455
    
    
    
    318
    
    
    
    (20
    )
    
    
    352
    
    
    
    34,702Other intangible assets
    
    
    513
    
    
    
    2,121
    
    
    
    0
    
    
    
    (299
    )
    
    
    10
    
    
    
    2,345Total cost of intangible assets
    
    
    130,783
    
    
    
    16,600
    
    
    
    1,165
    
    
    
    (345
    )
    
    
    3,658
    
    
    
    151,861Accum. amort. of development costs
    
    
    (29,427
    )
    
    
    (3,699
    )
    
    
    0
    
    
    
    0
    
    
    
    (69
    )
    
    
    (33,195
    )Accum. amort of concessions, patents,
licenses, brands & similar
    
    
    (15,526
    )
    
    
    (1,603
    )
    
    
    (845
    )
    
    
    0
    
    
    
    (654
    )
    
    
    (18,628
    )Accum. amort. of software
    
    
    (16,430
    )
    
    
    (4,965
    )
    
    
    1
    
    
    
    20
    
    
    
    (172
    )
    
    
    (21,546
    )Accum. amort. of other intangible assets
    
    
    0
    
    
    
    (189
    )
    
    
    (4
    )
    
    
    0
    
    
    
    0
    
    
    
    (193
    )Total accum. amort intangible assets
    
    
    (61,383
    )
    
    
    (10,456
    )
    
    
    (848
    )
    
    
    20
    
    
    
    (895
    )
    
    
    (73,562
    )Impairment of other intangible assets
    
    
    (15
    )
    
    
    0
    
    
    
    0
    
    
    
    15
    
    
    
    0
    
    
    
    0Carrying amount of intangible assets
    
    
    69,385
    
    
    
    6,144
    
    
    
    317
    
    
    
    (310
    )
    
    
    2,763
    
    
    
    78,299
  1 of 3




---



##### 



APPENDIX II
GRIFOLS, S.A. AND SUBSIDIARIES
 Changes in Other Intangible Assets
for the year ended
31 December 2009
 Balances at
    
    
    
    
    
    Business
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/2008
    
    Additions
    
    combinations
    
    Transfers
    
    Disposals
    
    differences
    
    31/12/2009Development costs
    
    
    47,299
    
    
    
    8,146
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (31
    )
    
    
    55,414Concessions, patents, licenses
brands & similar
    
    
    40,461
    
    
    
    1
    
    
    
    6,525
    
    
    
    (5
    )
    
    
    0
    
    
    
    (723
    )
    
    
    46,259Software
    
    
    22,272
    
    
    
    6,700
    
    
    
    0
    
    
    
    1
    
    
    
    (240
    )
    
    
    (136
    )
    
    
    28,597Other intangible assets
    
    
    0
    
    
    
    508
    
    
    
    0
    
    
    
    5
    
    
    
    0
    
    
    
    0
    
    
    
    513Total cost of intangible assets
    
    
    110,032
    
    
    
    15,355
    
    
    
    6,525
    
    
    
    1
    
    
    
    (240
    )
    
    
    (890
    )
    
    
    130,783Accum. amort. of development costs
    
    
    (23,878
    )
    
    
    (5,580
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    31
    
    
    
    (29,427
    )Accum. amort of concessions, patents,
licenses, brands & similar
    
    
    (14,881
    )
    
    
    (806
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    161
    
    
    
    (15,526
    )Accum. amort. of software
    
    
    (13,517
    )
    
    
    (3,097
    )
    
    
    0
    
    
    
    0
    
    
    
    132
    
    
    
    52
    
    
    
    (16,430
    )Total accum. amort intangible assets
    
    
    (52,276
    )
    
    
    (9,483
    )
    
    
    0
    
    
    
    0
    
    
    
    132
    
    
    
    244
    
    
    
    (61,383
    )Impairment of other intangible assets
    
    
    0
    
    
    
    (15
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (15
    )Carrying amount of intangible assets
    
    
    57,756
    
    
    
    5,857
    
    
    
    6,525
    
    
    
    1
    
    
    
    (108
    )
    
    
    (646
    )
    
    
    69,385(note 3
    )
  2 of 3




---



##### 



APPENDIX II
GRIFOLS, S.A. AND SUBSIDIARIES
 Changes in Other Intangible Assets
for the year ended
31 December 2008
 Balances at
    
    
    
    
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/2007
    
    Additions
    
    Transfers
    
    Disposals
    
    differences
    
    31/12/2008Intangible assetsDevelopment costs
    
    
    43,141
    
    
    
    5,255
    
    
    
    0
    
    
    
    (1,146
    )
    
    
    49
    
    
    
    47,299Concessions, patents, licenses
brands and similar
    
    
    40,790
    
    
    
    0
    
    
    
    0
    
    
    
    (1,618
    )
    
    
    1,289
    
    
    
    40,461Software
    
    
    17,704
    
    
    
    4,489
    
    
    
    (59
    )
    
    
    (8
    )
    
    
    146
    
    
    
    22,272Total cost of intangible assets
    
    
    101,635
    
    
    
    9,744
    
    
    
    (59
    )
    
    
    (2,772
    )
    
    
    1,484
    
    
    
    110,032Accum. amort. of development costs
    
    
    (18,916
    )
    
    
    (4,634
    )
    
    
    (287
    )
    
    
    0
    
    
    
    (41
    )
    
    
    (23,878
    )Accum. amort of concessions, patents,
licenses, brands & similar
    
    
    (14,110
    )
    
    
    (2,322
    )
    
    
    287
    
    
    
    1,616
    
    
    
    (352
    )
    
    
    (14,881
    )Accum. amort. of software
    
    
    (11,386
    )
    
    
    (2,124
    )
    
    
    59
    
    
    
    10
    
    
    
    (76
    )
    
    
    (13,517
    )Total Accum. amort intangible assets
    
    
    (44,412
    )
    
    
    (9,080
    )
    
    
    59
    
    
    
    1,626
    
    
    
    (469
    )
    
    
    (52,276
    )Carrying amount of intangible assets
    
    
    57,223
    
    
    
    664
    
    
    
    0
    
    
    
    (1,146
    )
    
    
    1,015
    
    
    
    57,756
  3 of 3




---



##### 



APPENDIX III
 GRIFOLS, S.A. AND SUBSIDIARIES
 Changes in Property, Plant and Equipment
for the year ended
31 December 2010
(Expressed in thousands of Euros)
 Balances at
    
    
    
    
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/09
    
    Additions
    
    Transfers
    
    Disposals
    
    differences
    
    31/12/10Cost:Land and buildings
    
    
    142,600
    
    
    
    10,594
    
    
    
    28,930
    
    
    
    (1,085
    )
    
    
    3,703
    
    
    
    184,742Plant and
machinery
    
    
    344,030
    
    
    
    35,356
    
    
    
    21,857
    
    
    
    (8,242
    )
    
    
    12,268
    
    
    
    405,269Under construction
    
    
    70,781
    
    
    
    43,247
    
    
    
    (49,694
    )
    
    
    0
    
    
    
    1,950
    
    
    
    66,284557,411
    
    
    
    89,197
    
    
    
    1,093
    
    
    
    (9,327
    )
    
    
    17,921
    
    
    
    656,295Accumulated depreciation:Buildings
    
    
    (9,502
    )
    
    
    (1,890
    )
    
    
    (16
    )
    
    
    0
    
    
    
    (139
    )
    
    
    (11,547
    )Plant and
machinery
    
    
    (176,204
    )
    
    
    (33,430
    )
    
    
    (1,394
    )
    
    
    6,016
    
    
    
    (4,956
    )
    
    
    (209,968
    )(185,706
    )
    
    
    (35,320
    )
    
    
    (1,410
    )
    
    
    6,016
    
    
    
    (5,095
    )
    
    
    (221,515
    )Impairment of other
property, plant and equipment
    
    
    0
    
    
    
    (649
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    (649
    )Carrying amount
    
    
    371,705
    
    
    
    53,228
    
    
    
    (317
    )
    
    
    (3,311
    )
    
    
    12,826
    
    
    
    434,131
  1 of 3




---



##### 



APPENDIX III
GRIFOLS, S.A. AND SUBSIDIARIES
 Changes in Property, Plant and Equipment
for the year ended
31 December 2009
(Expressed in thousands of Euros)
 Balances at
    
    
    
    
    
    Business
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/08
    
    Additions
    
    combinations
    
    Transfers
    
    Disposals
    
    differences
    
    31/12/09Cost:Land and buildings
    
    
    111,067
    
    
    
    9,729
    
    
    
    0
    
    
    
    22,905
    
    
    
    0
    
    
    
    (1,101
    )
    
    
    142,600Plant and
machinery
    
    
    287,761
    
    
    
    33,994
    
    
    
    2,307
    
    
    
    27,784
    
    
    
    (5,881
    )
    
    
    (1,935
    )
    
    
    344,030Under construction
    
    
    63,620
    
    
    
    59,692
    
    
    
    0
    
    
    
    (50,882
    )
    
    
    (757
    )
    
    
    (892
    )
    
    
    70,781462,448
    
    
    
    103,415
    
    
    
    2,307
    
    
    
    (193
    )
    
    
    (6,638
    )
    
    
    (3,928
    )
    
    
    557,411Accumulated depreciation:Buildings
    
    
    (8,049
    )
    
    
    (1,514
    )
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    61
    
    
    
    (9,502
    )Plant and
machinery
    
    
    (153,390
    )
    
    
    (28,557
    )
    
    
    0
    
    
    
    192
    
    
    
    4,942
    
    
    
    609
    
    
    
    (176,204
    )(161,439
    )
    
    
    (30,071
    )
    
    
    0
    
    
    
    192
    
    
    
    4,942
    
    
    
    670
    
    
    
    (185,706
    )Carrying amount
    
    
    301,009
    
    
    
    73,344
    
    
    
    2,307
    
    
    
    (1
    )
    
    
    (1,696
    )
    
    
    (3,258
    )
    
    
    371,705(note 3)
  2 of 3




---



##### 



APPENDIX III
GRIFOLS, S.A. AND SUBSIDIARIES
 Changes in Property, Plant and Equipment
for the year ended
31 December 2008
(Expressed in thousands of Euros)
 Balances at
    
    
    
    
    
    Business
    
    
    
    
    
    
    
    
    
    Translation
    
    Balances at31/12/07
    
    Additions
    
    combinations
    
    Transfers
    
    Disposals
    
    differences
    
    31/12/08Cost:Land and buildings
    
    
    79,845
    
    
    
    29,142
    
    
    
    0
    
    
    
    641
    
    
    
    0
    
    
    
    1,439
    
    
    
    111,067Plant and
machinery
    
    
    233,812
    
    
    
    35,408
    
    
    
    3
    
    
    
    22,423
    
    
    
    (5,939
    )
    
    
    2,054
    
    
    
    287,761Under construction
    
    
    30,079
    
    
    
    55,399
    
    
    
    0
    
    
    
    (23,948
    )
    
    
    (128
    )
    
    
    2,218
    
    
    
    63,620343,736
    
    
    
    119,949
    
    
    
    3
    
    
    
    (884
    )
    
    
    (6,067
    )
    
    
    5,711
    
    
    
    462,448Accumulated depreciation:Buildings
    
    
    (6,735
    )
    
    
    (1,234
    )
    
    
    0
    
    
    
    (39
    )
    
    
    29
    
    
    
    (70
    )
    
    
    (8,049
    )Plant and
machinery
    
    
    (135,669
    )
    
    
    (22,942
    )
    
    
    0
    
    
    
    923
    
    
    
    5,027
    
    
    
    (729
    )
    
    
    (153,390
    )(142,404
    )
    
    
    (24,176
    )
    
    
    0
    
    
    
    884
    
    
    
    5,056
    
    
    
    (799
    )
    
    
    (161,439
    )Carrying amount
    
    
    201,332
    
    
    
    95,773
    
    
    
    3
    
    
    
    0
    
    
    
    (1,011
    )
    
    
    4,912
    
    
    
    301,009(note 3
    )
  3 of 3




---



##### 



APPENDIX IV
 GRIFOLS, S.A. AND SUBSIDIARIES
 Non-current Loans and Borrowings
for the year ended
31 December 2010
(Expressed in thousands of Euros)
 Thousands of EurosInitial loanConcession
    
    
    
    
    
    
    
    
    
    arrangementLoan
    
    Currency
    
    Interest rate
    
    date
    
    Maturity date
    
    Face amount
    
    expenses
    
    Carrying amountSyndicated
loan  Club deal
    
    EUR
    
    Euribor + 0,8%
    
    
    01/05/2008
    
    
    
    26/05/2013
    
    
    
    350,000
    
    
    
    (2,427
    )
    
    
    99,408Instituto de crédito Oficial
    
    EUR
    
    Euribor + 1%
    
    
    01/06/2006
    
    
    
    26/05/2016
    
    
    
    30,000
    
    
    
    (210
    )
    
    
    17,955Caixa Catalunya  Mortgage loan
    
    EUR
    
    Euribor + 0,9%
    
    
    01/02/2008
    
    
    
    01/02/2018
    
    
    
    14,000
    
    
    
    (294
    )
    
    
    10,115Banco Santander
    
    EUR
    
    ICO + 1,8%
    
    
    01/06/2009
    
    
    
    01/06/2016
    
    
    
    6,000
    
    
    
    
    
    
    
    5,400Caja de Madrid
    
    EUR
    
    Euribor + 1%
    
    
    05/06/2009
    
    
    
    05/06/2016
    
    
    
    6,000
    
    
    
    
    
    
    
    5,400Banco Guipuzcoano
    
    EUR
    
    Euribor + 1%
    
    
    25/03/2010
    
    
    
    25/03/2020
    
    
    
    8,500
    
    
    
    
    
    
    
    8,500Banco Sabadell
    
    EUR
    
    Euribor + 1%
    
    
    11/06/2010
    
    
    
    30/06/2012
    
    
    
    1,465
    
    
    
    
    
    
    
    1,413SCH
    
    EUR
    
    
    1.75
    %
    
    
    13/10/2010
    
    
    
    13/10/2017
    
    
    
    900
    
    
    
    
    
    
    
    876Ibercaja
    
    EUR
    
    Euribor + 1,99%
    
    
    30/07/2009
    
    
    
    31/07/2016
    
    
    
    1,800
    
    
    
    
    
    
    
    1,664Caja de Madrid
    
    
    
    
    
    Euribor + 2%
    
    
    09/03/2010
    
    
    
    25/03/2020
    
    
    
    10,000
    
    
    
    
    
    
    
    10,000SCH
    
    
    
    
    
    Euribor + 1%
    
    
    18/11/2010
    
    
    
    31/01/2012
    
    
    
    169
    
    
    
    
    
    
    
    169BBVA  Mortgage loan
    
    EUR
    
    Euribor + 1,2%
    
    
    21/10/2008
    
    
    
    31/12/2024
    
    
    
    45,000
    
    
    
    (676
    )
    
    
    39,201Caixa Catalunya
    
    EUR
    
    ICO + 1,99%
    
    
    30/07/2009
    
    
    
    25/08/2016
    
    
    
    1,440
    
    
    
    
    
    
    
    1,353Caixa Galicia
    
    EUR
    
    Euribor + 1%
    
    
    11/06/2010
    
    
    
    25/06/2020
    
    
    
    1,180
    
    
    
    
    
    
    
    1,003Banca Toscana
    
    EUR
    
    6 months Euribor + 1%
    
    
    08/05/2008
    
    
    
    30/06/2013
    
    
    
    3,000
    
    
    
    
    
    
    
    939Cofides
    
    EUR
    
    6 months Euribor + 0,45%
    
    
    01/08/2008
    
    
    
    20/08/2017
    
    
    
    6,854
    
    
    
    
    
    
    
    5,875Cofides
    
    EUR
    
    Euribor + 2%
    
    
    20/09/2011
    
    
    
    20/03/2017
    
    
    
    10,745
    
    
    
    
    
    
    
    10,177497,053
    
    
    
    (3,607
    )
    
    
    219,448Non-current finance lease creditors (see note 22)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,734497,053
    
    
    
    (3,607
    )
    
    
    224,182
  1 of 3




---



##### 



APPENDIX IV
GRIFOLS, S.A. AND SUBSIDIARIES
 Non-current Loans and Borrowings
for the year ended
31 December 2009
(Expressed in thousands of Euros)
 Thousands of EurosInitial loanConcession
    
    
    
    
    
    
    
    
    
    arrangementLoan
    
    Currency
    
    Interest rate
    
    date
    
    Maturity date
    
    Face amount
    
    expenses
    
    Carrying amountSyndicated loan Club deal
    
    EUR
    
    Euribor + 0,8%
    
    
    01/05/2008
    
    
    
    26/05/2013
    
    
    
    350,000
    
    
    
    (2,427
    )
    
    
    195,471Instituto de crédito Oficial
    
    EUR
    
    Euribor + 1%
    
    
    01/06/2006
    
    
    
    26/05/2016
    
    
    
    30,000
    
    
    
    (210
    )
    
    
    21,933Caixa Catalunya  Mortgage loan
    
    EUR
    
    Euribor + 0,9%
    
    
    01/02/2008
    
    
    
    01/02/2018
    
    
    
    14,000
    
    
    
    (294
    )
    
    
    11,733Banco Santander
    
    EUR
    
    ICO + 1,8%
    
    
    01/06/2009
    
    
    
    01/06/2016
    
    
    
    6,000
    
    
    
    
    
    
    
    6,000Caja de Madrid
    
    EUR
    
    Euribor + 1%
    
    
    05/06/2009
    
    
    
    05/06/2016
    
    
    
    6,000
    
    
    
    
    
    
    
    6,000Ibercaja
    
    EUR
    
    Euribor + 1,9%
    
    
    30/07/2009
    
    
    
    31/07/2016
    
    
    
    1,800
    
    
    
    
    
    
    
    1,800BBVA  Mortgage loan
    
    EUR
    
    Euribor + 1,2%
    
    
    21/10/2008
    
    
    
    31/12/2024
    
    
    
    45,000
    
    
    
    (676
    )
    
    
    33,649Caixa Catalunya
    
    EUR
    
    ICO + 1,99%
    
    
    30/07/2009
    
    
    
    25/08/2016
    
    
    
    1,440
    
    
    
    
    
    
    
    1,440Banca Toscana
    
    EUR
    
    6 months Euribor + 1%
    
    
    08/05/2008
    
    
    
    30/06/2013
    
    
    
    3,000
    
    
    
    
    
    
    
    1,552Cofides
    
    EUR
    
    6 months Euribor + 0,45%
    
    
    01/08/2008
    
    
    
    20/08/2017
    
    
    
    6,854
    
    
    
    
    
    
    
    6,854464,094
    
    
    
    (3,607
    )
    
    
    286,432Non-current finance lease creditors (see note 22)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,202464,094
    
    
    
    (3,607
    )
    
    
    292,634
  2 of 3




---



##### 



APPENDIX IV
GRIFOLS, S.A. AND SUBSIDIARIES
 Non-current Loans and Borrowings
for the year ended
31 December 2008
(Expressed in thousands of Euros)
 Thousands of EurosInitial loanarrangementLoan
    
    Currency
    
    Interest rate
    
    Concession date
    
    Maturity date
    
    Face amount
    
    expenses
    
    Carrying amountSyndicated loan Club deal
    
    EUR / USD
    
    Euribor + 0,8%
    
    
    01/05/2008
    
    
    
    26/05/2013
    
    
    
    350,000
    
    
    
    (1,984
    )
    
    
    225,320Institut Catalá de Finances
    
    EUR
    
    
    5.70
    %
    
    
    27/01/2005
    
    
    
    28/02/2010
    
    
    
    6,247
    
    
    
    (62
    )
    
    
    312Instituto de Crédito Oficial
    
    EUR
    
    
    4.94
    %
    
    
    01/06/2006
    
    
    
    26/05/2016
    
    
    
    30,000
    
    
    
    (210
    )
    
    
    25,907Caixa Catalunya  Mortgage loan
    
    EUR
    
    
    5.25
    %
    
    
    01/02/2008
    
    
    
    01/02/2018
    
    
    
    14,000
    
    
    
    (294
    )
    
    
    13,350BBVA  Mortgage loan
    
    EUR
    
    
    6.50
    %
    
    
    21/10/2008
    
    
    
    31/12/2024
    
    
    
    45,000
    
    
    
    (676
    )
    
    
    30,463Banca Toscana
    
    EUR
    
    
    5.33
    %
    
    
    08/05/2008
    
    
    
    30/06/2013
    
    
    
    3,000
    
    
    
    
    
    
    
    2,183Cofides
    
    EUR
    
    
    5.61
    %
    
    
    01/08/2008
    
    
    
    20/08/2017
    
    
    
    6,854
    
    
    
    
    
    
    
    6,854448,247
    
    
    
    (3,226
    )
    
    
    304,389Non-current finance lease creditors (see note 22)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,124448,247
    
    
    
    (3,226
    )
    
    
    311,513
  3 of 3