Annual report
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Integrated Report 2025 Report
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3 2 1.1 A global pharmaceutical company 10 1.2 A business model for comprehensive health and life care 13 1.3 Internationalisation as a path to growth 18 1.4 We create value beyond the business 20 1.5 Governance: our guide 22 3.1 Environment 42 3.2 People 52 3.3 Patients 63 3.4 Conduct 70 3.5 Partnership 74 3.6 Research and development (R&D) 77 3.7 Information security and data protection 81 3.8 Financial performance 84 2.1 We listen to our stakeholders 28 2.2 We analyse the environment and its influence 30 2.3 We have a roadmap to grow and create value 34 Contents
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5 4 INTEGRATED REPORT 2025 Letter from the CEO Letter from the CEO 2025 was a pivotal year for Faes Farma. It was a year full of enthusiasm and determination, during which every step taken contributed decisively to the Group’s transformation. It was a period of execution and progress in which we consolidated the foundations of the future we want to build. One of the most significant milestones was the unveiling of our new Strategic Plan for the period 2025–2030. This plan establishes a clear and coherent path towards our aspiration to be recognised as the best Spanish pharmaceutical company globally, with the goal of achieving revenue of 1 billion euros by 2030 through a combination of organic growth and value creation from recent inorganic operations. This growth will be accompanied by sustained improvements in profitability, with the ambition of achieving an EBITDA of 240 million euros, while maintaining a balanced financial structure. Financially, we achieved revenues of 627 million euros in 2025, representing growth of 23%, driven by strong performance across all our business areas. This performance reflects the strength of our model, supported by the pharmaceutical business thanks to international dynamism - particularly in Latin America - and the evolution of the licensing area. This growth has been accompanied by rigorous financial management, enabling us to maintain a solid balance sheet, even amidst significant strategic investments, and continue our attractive, sustainable shareholder remuneration policy. In 2025, we made significant progress in executing our inorganic growth strategy through the acquisition of Laboratorios Edol in Portugal and SIFI in Italy. The latter was the largest operation in the Group’s history. These acquisitions have enabled us to strengthen our international position and consolidate ophthalmology as a strategic therapeutic area that accounts for a significant proportion of our revenues. These operations also generate commercial, operational and innovation synergies that strengthen our execution capacity and future growth. Adding a specialised ophthalmology portfolio combined with innovative products such as Akantior, which address unmet medical needs, along with the opportunity for development in new indications, reinforces our value proposition and our commitment to R&D. In parallel, we have continued to consolidate and strengthen our industrial capabilities. Commissioning the new pharmaceutical plant in Derio and progressively transferring production to it enables us to respond to the needs arising from our growth and improve operational efficiency, as set out in our Strategic Plan. Furthermore, the new animal nutrition plant in Huesca is already making a significant contribution to the growth of this division. The Group’s operational evolution has also been reflected in the performance of its shares, which have become some of the most outstanding in Spain’s pharmaceutical sector. During the year, Faes Farma registered a revaluation of over 48%, reaching its highest level in the last five years. This performance reflects the market’s confidence in our Strategic Plan. We have also made progress in integrating sustainability as a strategic business focus with the launch of our strategy F ocused on a sustainable Future, aligned with the Strategic Plan and the 2030 Agenda. We recognise that sustainability is a genuine driver of value creation, an increasingly important factor in the sector’s competitiveness, and primarily a means of enhancing the lives of patients and the general public, while generating a positive and enduring impact on society. Our goal of reducing our scope 1 and 2 emissions by 42% by 2030 reinforces our belief that health and a healthy planet go hand in hand. As we enter the next stage, we are a stronger and better-prepared company, with renewed ambition to continue growing profitably and sustainably. We are guided by our values, and our purpose is to unite passion, science and innovation to transform people’s health. Looking ahead to 2026, our priorities will be the integration of SIFI and Edol, accelerating our international expansion, consolidating the Derio plant and advancing sustainability as a competitive advantage. I would like to thank everyone at Faes Farma for their commitment to executing this project. Their efforts are crucial in turning our ambition into tangible results. We will continue to move forward with the same enthusiasm and determination, maintaining our commitment to building an increasingly global, robust and competitive company. Thank you very much for your trust. Eduardo Recoder de la Cuadra CEO of Faes Farma
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7 6 INTEGRATED REPORT 2025 2025 Milestones ACCELERATE GROWTH LEAD BASED ON SCIENCE ACHIEVE COMMERCIAL AND OPERATIONAL EXCELLENCE The beginning of a new direction for the Faes Farma Group PROMOTING A POSITIVE IMPACT ON OUR CULTURE AND ENVIRONMENT Start of transferring the activity to the new pharmaceutical plant in Derio (Spain) TOTAL REVENUE €627 M +23% compared to 2024 Incorporation of a specialised portfolio in ophthalmology €30.2 M INVESTMENT AND EXPENDITURE IN R&D +27% compared to 2024 1,047 MWh RENEWABLE ENERGY PRODUCED +147% compared to 2024 Approval for paediatric bilastine and Robaxin 1000 and 1500 mg in Europe Approval of the reimbursement of Akantior in Spain Dossier validated and first round of questions completed with the Reference Member State for the evaluation of mesalazine 1.5 g gastro-resistant tablets ADJUSTED EBITDA1 €132.8 M +3% compared to 2024 NET PROFIT €79.7 M STOCK MARKET REVALUATION HIGHER THAN 48% price at five-year high In operation the new plant of ISF by Farm Faes, animal nutrition and health specialists in Huesca (Spain) ENVIRONMENT PEOPLE PATIENTS CONDUCT PARTNERSHIP In development 4 NEW FORMULATIONS AIMED AT IMPROVING ACCESS TO MEDICINES First interactions with PATIENT ASSOCIATIONS to incorporate their vision into clinical trials UPDATE TO THE CODE OF ETHICS AND CONDUCT, integrating the new purpose, mission and values Dual certification at Faes Farma S.A.: ISO 20400 Sustainable Procurement and UNE 15896 Value- Added Procurement Management Improving the TRACEABILITY and QUALITY of Scope 3 information through collaboration with the value chain 2 NEW POST-MARKETING STUDIES underway, reinforcing knowledge about the effectiveness and safety of our medicines Approval of the TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION 21% WOMEN IN SENIOR MANAGEMENT 11% in 2024 2,201 PEOPLE TRAINED in responsible business conduct +€145,000 CONTRIBUTED TO FOUNDATIONS AND NON-PROFIT ORGANISATIONS Implementation of the NEW FAES FARMA CULTURE STRATEGIC PLAN 2025-2030 and SUSTAINABILITY STRATEGY 2025-2030 FOCUSED ON A SUSTAINABLE FUTURE ACQUISITION of the subgroup Edol and the subgroup SIFI 1 Without M&A or extraordinary costs for Derio. 39% RENEWABLE ENERGY CONSUMED, with 100% of the electricity consumed in Spain and Guatemala being renewable 9% of the ACCIDENT FREQUENCY RATE compared to 2024 +3.6% PAY GAP +4% in 2024 2025 Milestones
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1 9 1. We are Faes FarmaINTEGRATED REPORT 2025 We are Faes Farma A global pharmaceutical company A business model for comprehensive health and life care Internationalisation as a path to growth We create value beyond the business Governance: our guide 1.1 1.2 1.3 1.4 1.5 9
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11 10 INTEGRATED REPORT 2025 1. We are Faes Farma We have eight pharmaceutical production plants and four factories producing animal nutrition products. Our presence spans five continents and more than 130 countries, through products that we market directly or license. As a health company, our approach is based on the ‘One Health’ concept of the World Health Organisation (WHO), which integrates the well-being of people, the health of animals, and environmental care. 1.1 A global pharmaceutical company We have been dedicated to improving the health and quality of life of people and animals for over 90 years. T o that end, we research, develop, manufacture and market prescription drugs and other healthcare and animal nutrition products. The patient at the centre of our activity The environment – preserving it and maintaining it – is the framework of our actions Animal nutrition and health underpin the well-being of people Environment Human health Animal health ONE HEAL TH Our ambition is to become the best global Spanish pharmaceutical company, and this goal informs our new Strategic Plan 2025-2030. A vision for the future that is also determined by the need to integrate sustainability into the business model and decision- making through the Sustainability Strategy 2025- 2030 Focused on a sustainable Future. 2 business lines 2,681 employees 5 continents 4 animal nutrition and health production plants €627 M of revenue in 2025 8 pharmaceutical production plants +130 countries 17 with direct presence
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13 12 INTEGRATED REPORT 2025 1. We are Faes Farma 1.2 A business model for comprehensive health and life care Pharmaceutical and Healthcare Line In both strategic decision-making and our daily work, we are guided by our culture, which is defined by our purpose, vision, mission and values. We research, develop, manufacture and market medicines and active substances, and in turn, we develop and market cosmetic products, food supplements, nutritional products and medical devices for human use. We have both pharmaceutical and healthcare specialities as well as pharmaceutical raw materials. Mission We develop and deliver innovative products to transform people’s health, while striving for excellence and fostering talent in our teams. Purpose We bring together passion, science and innovation to transform people’s health. Vision T o be a benchmark pharmaceutical group that is on the cutting edge, so that it can transform people’s health and well-being. Values The patient, our priority We are innovative We care for people and the environment Excellence that transforms We aspire to more Polyhexanide (keratitis produced by Acanthamoeba) Bilastine (allergic rhinoconjunctivitis) Calcifediol (vitamin D deficiency) Mesalazine (ulcerative colitis) A culture that gives meaning to everything we do Our business model involves the quest for innovative, honest, and quality solutions for the holistic care of health and life. Pharmaceutical and healthcare specialities Our main activity focuses on medicines for human consumption in different therapeutic areas: respiratory, cardiovascular, digestive and metabolic, musculoskeletal, ophthalmologicaldermatological. We are involved in various stages of the process, from the conception of a new drug to its launch on the market. The four main molecules we market are: We also develop and/or market cosmetic products, foods, food supplements and medical devices (CAPS) for human consumption, manufactured both in-house and by third parties. Pharmaceutical raw materials. This activity focuses on active pharmaceutical ingredients (APIs).
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15 14 INTEGRATED REPORT 2025 1. We are Faes Farma Value chain of the Pharmaceutical and Healthcare Line Patients and consumers, our priority MARKETING AND POST-AUTHORISATION ANAL YSIS END USERR&D + PRODUCTION + QUALITYSUPPL Y R&D Regulatory and commercial analysis Medicinal products Training and information for healthcare professionals Products Channels Wholesalers Pharmacies and drug stores Hospitals Department stores /retail Institutional channel CAPS* * Cosmetics products, foods, food supplements and medical devices. Active substances B2BProduction + quality Quality
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17 16 INTEGRATED REPORT 2025 1. We are Faes Farma Animal Nutrition and Health Line At Faes Farma, we create high-quality nutritional solutions and strategies with the goal of improving the health and well-being of swine, ruminants, poultry and aquaculture. At the Ingaso Farm and T ecnovit production plants we produce complementary feeds (cores), correctors, complete feeds and supplements for animal nutrition. We also advise our customers, and we are a technology provider, developing R&D projects of our own and with third parties through consortia with various types of entities. At the ISF by Farm Faes plant we manufacture special feeds for early-stage pigs. At Capselos we engage in the microencapsulation of products used in animal and human nutrition. It also shares advising and research functions with Ingaso Farm and T ecnovit. Through Cidosa we market products our own products for animal nutrition, and we distribute raw materials and finished products purchased from third parties under licence. MARKETING (B2B) + ADVISINGR&D + PRODUCTION + QUALITYSUPPL Y R&D Nutrition for pigs, poultry, ruminants and aquaculture Products in powder, liquid, granule and microencapsulated form Food Customers Feed Customers Human nutrition Microencapsulated products Agricultural holdings Distributors Feed manufacturers Value chain of the Animal Nutrition and Health Line Quality Products Production + quality
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19 18 INTEGRATED REPORT 2025 1. We are Faes Farma Mexico Presence in Iberia Italy Spain Portugal Guatemala United Arab Emirates Colombia Switzerland France Mozambique Turkey Romania Ecuador Peru Nigeria Chile Direct presence of the Group Presence of Group products via direct sales or partners Production plants. Pharmaceutical Line Production plants. Animal Nutrition and Health Line Own production plant. Pharmaceutical Line Own production plant. Animal Nutrition and Health Line Locations with Faes Farma Group offices 1.3 Internationalisation as a path to growth One of the factors that influence our activity is accelerating growth by strengthening our international presence. We achieve this in the more than 130 countries where we operate through various models, including direct presence, product presence, and production plants. Ingaso (Lanciego, Álava) Employees by country Faes Farma S.A. (Leioa, Bizkaia) Faes Farma S.A. (Derio, Bizkaia) Faes Farma Portugal (Amadora, Portugal) Laboratorio Edol (Linda-a-Velha, Portugal) Laboratorio Edol (Carnaxide, Portugal) ISF by Farm Faes (Huesca) T ecnovit (Alforja, T arragona) Capselos (Barbastro, Huesca) France 3 Spain 923 United Arab Emirates 2 Ecuador 63 Colombia 192 Chile 94 Guatemala 174 Italy 394 Portugal 405 Romania 23 Switzerland 1 Turkey 31 Mexico 275 Mozambique 18 Nigeria 32 Peru 51
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21 20 INTEGRATED REPORT 2025 1. We are Faes Farma 1.4 We create value beyond the business At Faes Farma, our work doesn’t end at the company. Our business model, strategy and culture are the pillars on which we transform investment into added value for the economy, people, society, the environment and scientific knowledge and development. EXTERNAL CONTEXT Regulation Cybersecurity Digital disruption and artificial intelligence Problems with the supply of critical goods and resources Macroeconomic and geopolitical uncertainty Risk of misinformation CAPITAL INVESTED CAPITAL GENERATEDMISSION VISION VALUES FINANCIAL 2 business lines Direct presence in 17 countries Acquisition of the subgroup Edol and the subgroup SIFI +130 countries with marketed or licensed products 1,795 thousand euros in public grants received (+18% compared to 2024) FINANCIAL €627 M revenue (+23% compared to 2024) €85 M in BAI (profit before tax) SOCIAL AND RELATIONAL Sponsorship of congresses, conferences and training courses targeted at various stakeholders €145,669 to foundations and non-profit organisations SOCIAL AND RELATIONAL €14 M of corporate tax paid (+13% compared to 2024) T echnical development of healthcare professionals 4 new formulations aimed at improving access to medicines ENVIRONMENTAL 0.115 MWh of energy consumed/thousands of euros in revenue 0.37 m³ of water consumed/thousands of euros of revenue ENVIRONMENTAL Carbon footprint 218,806 tCO₂eq 39.2% of energy of renewable origin 100% of electricity from renewable sources in Spain and Guatemala 92% waste recovered at the Derio plant HUMAN 2,681 employees 93% are permanent contracts €138 M in personnel expenditure HUMAN Improving the health of people Safety: -9% frequency index compared to 2024 3.6% pay gap considering the professional category 21.62 average hours of training per employee INTELLECTUAL Collaboration with universities, research centres and technology partners for the development of new products Providing training in our Code of Ethics and Conduct, pharmacovigilance, anti-corruption, anti-bribery, and data protection and privacy €30.2 M of investment and spending in R&D (+27% compared to 2024) INTELLECTUAL 4 strategic molecules: bilastine, calcifediol, mesalazine and polyhexanide Ophthalmology, new featured therapeutic area INDUSTRIAL 8 pharmaceutical production plants 4 animal nutrition and health production plants €22 M invested (CapEx) €156 M of other operating costs INDUSTRIAL Greater production capacity linked to the two new plants (Derio and ISF by Farm Faes) and the acquisition of the Edol and SIFI subgroups Production R&D Marketing Accelerate growth Lead based on science Promoting a positive impact on our culture and environment Achieve commercial and operational excellence
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23 22 INTEGRATED REPORT 2025 1. We are Faes Farma 1.5 Governance: our guide At Faes Farma Group, how we do things is as important as what we do. Rigor, transparency, and integrity in business conduct set the standard at all levels of the organisation. As a listed company1, our standards are as high as our ambition to improve every day. Corporate governance The main governing bodies are the General Meeting of Shareholders, the Board of Directors and Senior Management, supported by two committees: The Audit and Compliance Committee and the Appointments and Remuneration Committee. Audit and Compliance Committee Appointments and Remuneration Committee Ethics Committee Integrity line Code of Ethics and Conduct General Meeting of Shareholders Decision Board of Directors Management and supervision Rules of Procedure of the General Meeting of Shareholders Rules of Procedure of the Board of Directors Rules of Procedure of the Appointments and Remuneration Committee Rules of Procedure of the Audit and Compliance Committee 1 Faes Farma, S.A. is listed on the Bilbao, Madrid, Barcelona and Valencia stock exchanges and its shares are traded on the continuous market. General Meeting of Shareholders The largest decision-making body. It’s main functions are approving the annual accounts, issuing the sustainability report, approving corporate management, amending the articles of association, appointing directors and increasing and reducing the share capital, among other functions. Its powers and functioning are set out in its Rules of Procedure. It meets annually on an ordinary basis. Board of Directors As the supreme management and supervisory body, aware of the company’s societal responsibilities, it undertakes to ensure that its activities are carried out in accordance with a set of values, principles and criteria of respect for the dignity, rights and equality of people and their diversity, as well as in accordance with professional objectivity for employees, shareholders and for society as a whole. Its functioning and powers are set out in the Articles of Association and the Rules of Procedure. 50% 50% 90% 60% independent directors women on the Board non-executive directors with ESG competencies Member of the Audit and Compliance Committee Member of the Appointments and Remuneration Committee ESG competencies Mr. Mariano Ucar Angulo Non-executive Chairman Director Other external Mrs. Beatriz Faro Morales Director External Independent Mr. Gonzalo Fernández de Valderrama Iribarnegaray Director External proprietary Mr. Iñigo Zavala Ortiz de la Torre Director External proprietary Mrs. Carmen Basagoiti Pastor Director External proprietary Mr. Eduardo Recoder de la Cuadra Chief Executive Officer Mrs. Belén Amatriain Corbi Director External Independent Mrs. María Eugenia Zugaza Salazar Director External Independent Mrs. Nuria Pascual Lapeña Director External Independent Mr. Enrique Linares Plaza Director External Independent / Coordinator Mr. Francisco Pérez-Crespo Payá Non-director secretary
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25 24 INTEGRATED REPORT 2025 1. We are Faes Farma The Board of Directors currently comprises ten members2, five of whom are independent and five of whom are women. This composition is in line with the Code of Good Governance of Listed Companies’ recommendations regarding the independence and diversity of the Board. The two delegated committees - the Audit and Compliance Committee and the Appointments and Remuneration Committee - are chaired by women and comprise three independent directors. Audit and Compliance Committee Comprising three independent female directors, the main functions of this committee - described in its Rules of Procedure - are related to the internal control and audit system, the process of financial and non-financial reporting, the risk management system and functions related to environmental, social and corporate governance issues. These include the supervision of compliance with rules of corporate governance and the company’s internal codes of conduct. It is also responsible for establishing and supervising the mechanism (Internal Reporting System – Integrity Line) that allows employees and other stakeholders to report potentially significant irregularities, including financial and accounting irregularities, or any other irregularities related to the company that might be brought to their attention within the company or the Group. Appointments and Remuneration Committee Consisting of three independent members (two women and one man), the committee is responsible for the selection, appointment, re-election, dismissal and remuneration of directors, as well as the appointment and remuneration of senior managers. These functions are described in its Rules of Procedure. Senior Management Comprising 14 executive members (11 men and 3 women) with the positions of CEO, Chief Officer and Country Manager. 2 Further information on the competency map of the Board of Directors of Faes Farma here. 21% women in Senior Management 4% CEO variable remuneration 3% of the rest of Senior Management Linked to approval of the Sustainability Strategy 2025-2030 Linked to implementation of the People Plan 4% CEO variable remuneration 3% variable remuneration of the rest of Senior Management
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2 2. Our strategy. Towards a prosperous and sustainable future 27 INTEGRATED REPORT 2025 Our strategy Towards a prosperous and sustainable future We listen to our stakeholders We analyse the environment and its influence We have a roadmap to grow and create value 2.1 2.2 2.3 27
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2. Our strategy. Towards a prosperous and sustainable future 29 28 INTEGRATED REPORT 2025 We start with a map comprising seven internal and external groups, to which we are strongly committed according to their demands and needs. In order to understand these expectations, it is crucial to establish, maintain, and update effective communication channels and tools targeted at different audiences. At Faes Farma, the following table shows those we frequently use. 2.1 We listen to our stakeholders Stakeholder Commitment Main communication channels People (personnel team) We work as a team, respecting diversity and creating an environment in which everyone can develop and contribute to the best of their ability. Furthermore, we are committed to building trust through active listening, respect and creating value. Intranet Comunica-T and Unifikas T own halls Corporate email account Employee portals: My Faes, T alana Next Information screens Surveys Product surveillance units Statement of Non-Financial and Sustainability Information and other corporate reports Integrity line Works councils and specific committees Shareholders / Investors The majority of our capital is held by minority shareholders and institutional investors; therefore, ensuring a return on investment year on year and earning their trust by providing them with accurate, transparent and comprehensive information about our operations and results is essential to securing the long- term development of the business. Shareholder Channel Regular meetings with investors ESG ratings Statement of Non-Financial and Sustainability Information and other corporate reports Whistle-blower channel Consumers and end users (patients) We put the patient at the heart of everything we do, prioritising their best interests in our decision-making and taking the time to understand their needs so that we can actively seek solutions that have a positive impact on their lives and on society. Customer service Product surveillance units Social networks and corporate and product websites Statement of Non-Financial and Sustainability Information and other corporate reports Integrity line Studies / Clinical Trials Stakeholder Commitment Main communication channels Healthcare professionals We guarantee smooth relationships with our product prescribers through collaboration, continuous training and support in clinical practice, as well as an ethical commitment, all of which ensure that patients and consumers receive the best possible treatment. Medical Information Channel Product surveillance units Conferences, trade fairs, meetings and specific training courses Surveys Social networks and corporate and product websites Statement of Non-Financial and Sustainability Information and other corporate reports Integrity line Faes Farma commercial network Partners (customers) We demonstrate our commitment to our customers, including distributors, large retailers, pharmacies and parapharmacies, licensees, and public administration, by offering the best products and services, integrating technological innovation, and conducting research based on our commitment to active listening and continuous improvement. Customer service Product surveillance units Conferences, trade fairs, meetings and specific training courses Social networks and corporate and product websites Statement of Non-Financial and Sustainability Information and other corporate reports Integrity line Faes Farma’s network of contacts Partners (suppliers) Suppliers are the backbone, ensuring the continuity and quality of the end product. T o that end we maintain stable and fluid communication to anticipate and mitigate risks, ensure traceability and maintain product integrity throughout the product life cycle. Suppliers of raw materials and packaging materials, as well as manufacturers and suppliers of finished products (including licensors), are of particular criticality Surveys Social networks and corporate and product websites Statement of Non-Financial and Sustainability Information and other corporate reports Integrity line Faes Farma’s network of contacts Society The commitment to society goes beyond innovation in health. We strive to have a positive impact on local communities, collaborating with educational institutions and research centres to promote knowledge and the training of future professionals. We also take responsibility for protecting the environment, thereby contributing to a healthier future for people and the planet. Social networks and corporate and product websites Statement of Non-Financial and Sustainability Information and other corporate reports Integrity line Active listening to stakeholders is the foundation for building our new strategic approach for the 2025-2030 period.
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2. Our strategy. Towards a prosperous and sustainable future 31 30 INTEGRATED REPORT 2025 2.2 We analyse the environment and its influence In accordance with the requirements of the Corporate Sustainability Reporting Directive (CSRD), the double materiality analysis identifies, studies and evaluates the Group's IROs from two perspectives: T o incorporate the vision of the main stakeholders, we developed a listening and dialogue methodology involving quantitative consultations with customers and employees of different Group subsidiaries. In the 2025 update, we reviewed the IROs and their valuations to apply the lessons from the first double Specifically, the IROs (impacts, risks and opportunities) have informed the update of the Sustainability Strategy 2025-2030, which implements the fourth pillar of the Strategic Plan 2025-2030 and maintains the resilience of the Group’s management model. Double materiality IMP ACT MA TERIALITY how the company has an impact (either positively or negatively) in its environment. FINANCIAL MA TERIALITY how the environment can have an impact on the company (risks and opportunities that can affect the Group financially). materiality analysis in 2024 and integrate the recently acquired companies into the IROs (Edol and SIFI Laboratories), taking into account the type of activity, location and type of products. How do we conduct the analysis? Identification of impacts, risks and opportunities (IROs), and material issues Analysis of the context and business model Evaluation of the IROs together with stakeholders Interpretation of results Beyond the lessons learned from regular communication with our stakeholders, the conclusions drawn from the double materiality analysis —carried out in 2024 and updated in 2025— has been part of defining the company’s new direction in terms of sustainability.
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2. Our strategy. Towards a prosperous and sustainable future 33 32 INTEGRATED REPORT 2025 Material issue Material sub-issue Climate change Climate change Mitigation Energy Pollution of the environment Water pollution Water and marine resources Water Circular economy Resource inputs, including resource utilisation Waste and outflows of resources People Working conditions and labour rights Equal treatment and opportunities for all Health and safety Training and skills development Consumers and end users Social inclusion of consumers or end users Personal safety of consumers or end users Information-related impacts on consumers or end users Business conduct Corporate culture Whistleblower protection Corruption and bribery Fiscal transparency R&D Innovation and the incorporation of new technologies R&D in products Data security and privacy Data privacy Cybersecurity The issues that shape our strategy and management The issues and sub-issues resulting from the update of the double materiality analysis are: Environmental issues Social issues Governance issues IMPACT MATERIALITY FINANCIAL MATERIALITY MediumNon-material issues High Data security and privacy R&D Workers in the value chain Non-material issues Medium High Biodiversity and ecosystems Circular economy Water and marine resources Climate change Business conduct Consumers and end users Pollution People Social contributions and relationships with local communities 2025 DOUBLE MA TERIALITY MA TRIX The issues with the greatest impact across each pillar (environmental, social, governance) are: Consumers and end users. Our activity directly impacts people’s health; the patient is at the centre of what we do. Climate change and pollution. We must address the environmental and public health impacts of our activities. People. Protecting our staff in all areas strengthens their well-being and motivation, as well as our reputation. Business conduct. Our ethical standards and values foster trust among our stakeholders, ensure the sustainability of our operations and create long-term value. The issues with the greatest financial impact by pillar are as follows: Climate Change. We have a new Transition Plan to achieve climate neutrality by 2050. Consumers and end users. Maintaining a strong relationship and open lines of communication with this stakeholder group has a positive impact on the business. R&D. Key to improving our operations and continuing to incorporate new products. Data security and privacy. Safeguarding this asset helps to protect our operations and maintain the confidence of our stakeholders.
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2. Our strategy. Towards a prosperous and sustainable future 35 34 INTEGRATED REPORT 2025 2.3 We have a roadmap to grow and create value The sense of responsibility we feel regarding our role in society has guided the deliberations that have culminated in the new Strategic Plan 2025–2030 and the Sustainability Strategy 2025-2030 Focused on a Sustainable Future. We want to consolidate our position as leading player in the pharmaceutical industry. T o achieve this, the plan is structured around four key elements: Purpose: T o be recognised as the best global Spanish pharmaceutical companyStrategic Plan 2025-2030 Accelerate growth Lead based on science Achieve commercial and operational excellence 1 2 4 3 Promoting a positive impact on our culture and environment Growing organically in existing markets with a competitive portfolio, while also strengthening our international presence through M&A (mergers and acquisitions) operations. Using technology to support a new model of commercial excellence and, with regard to the operational approach, maximising productivity thanks to the Derio plant. Driving innovation and development in key therapeutic areas through collaboration and strategic alliances for product development, while always seeking to balance risk and optimise investment. Through a new sustainability strategy and with the ambition to be the ‘Best place to work’, fostering talent attraction, professional growth and a sense of belonging. At Faes Farma, sustainability is strategic and shapes our vision for the future. This conviction has been integrated into the Strategic Plan 2025–2030 as the fourth lever, which is proof of this. Building on this momentum, in 2025 we worked on developing a strategy that will guide our decision-making and activities in accordance with environmental, social and good governance criteria. We have also taken into account an increasingly challenging external context for our industry in every aspect. From an environmental perspective, the sensitivity of the regulations and the sector’s contribution to climate change mean that water and waste management must be controlled and preserved. Social aspects include barriers to equitable access for vulnerable groups and talent shortages. Traceability and transparency in the value chain are also important. The result of all this work done in 2025 is called Focused on a sustainable Future, Our Sustainability Strategy3 for the 2025-2030 period, which has five pillars with a key objective and several measures in each, in addition to four cross-cutting areas. The term ‘F ocused’ emphasises strategic discipline: thanks to the double materiality analysis, we focus on what is relevant to us and our stakeholders. ‘Future’ emphasises a long-term vision, linking sustainability to resilience, competitiveness, and creating value. A turning point and a year of transformation: this is how 2025 was at the Faes Farma Group. We have laid the foundations for a future in which growth and positive impact go hand in hand. Sustainability Strategy 2025-2030 3 Throughout 2026, we will work to integrate the Group’s new acquisitions, specifically the Edol and SIFI subgroups, into the Sustainability Strategy 2025-2030.
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2. Our strategy. Towards a prosperous and sustainable future 37 36 INTEGRATED REPORT 2025 Sustainability Strategy 2025–2030 Focused on a Sustainable Future Sustainability Committee We take care of the environment We make decisions based on ethics and integrity The patient, our priority We take care of people We are committed to building trust through active listening, respect and creating value Reduce our scope 1 and 2 emissions 42% by 2030. T o be valued internally as a leading company where people can grow and develop. System of global compliance adapted to the local reality. The role of Patient Relations Specialist aimed at developing programmes that promote dialogue with patient associations, focusing on knowledge and transparency. Implement a supplier selection and management system that integrates their ESG performance. Environment Conduct Patients Communication ESG impacts, risks and opportunities Sustainable finance and investors Inorganic growth and integration People Partnership Measurements by pillar Cross-cutting measures Pillar priority objective
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2. Our strategy. Towards a prosperous and sustainable future 39 38 INTEGRATED REPORT 2025 New Sustainability Committee T o ensure compliance with the strategy and monitor the progress of specific measures, we created the Sustainability Committee in 2025. This multidisciplinary monitoring body meets every four months. Coordinated by the Sustainability department of the Faes Farma Group, the Committee has a manager for each pillar, who supports the person responsible for each measure in their role. The Sustainability Committee is also supervised by the Global Executive T eam (GET) and the Audit and Compliance Committee. Global Executive T eam Board of Directors Audit and Compliance Committee Oversight Follow-up Sustainability Committee Responsible by pillar People: People Patients: Patient Relations Specialist Environment: M&O - Environment Conduct: Compliance Partnership: Purchasing and Logistics Transversal: Sustainability Coordination: Sustainability
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3 41 3. Our performanceINTEGRATED REPORT 2025 Our performance Environment People Patients Conduct Partnership Research and Development (R&D) Information security and data protection Financial performance 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 41
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43 42 INTEGRATED REPORT 2025 3. Our performance 3.1 Environment F ollowing the double materiality analysis, we identified the four most significant environmental issues in our management and determined the associated impacts, risks and opportunities (IRO) for each issue: T o address these IROs the Group’s Sustainability Policy defines our commitments to the environment: In addition, our pharmaceutical plants in Leioa and Derio (Spain) have a specific Environmental Policy based on the ISO 14001 standard. We have translated these commitments into specific measures in Focused on a Sustainable Future, our Sustainability Strategy 2025–2030, within the Environment pillar. Environmental management T owards the decarbonisation of the commercial fleet: 100% renewable fuel and electrification Water efficiency and management Environmental innovation in the product- Ecodesign Adaptation to climate change: risks and opportunities Climate change mitigation: measurement and monitoring Efficiency and sustainable sources of energy consumed on the premises Comply with laws, regulations and standards of regulatory bodies. Monitor environmental performance and the potential impacts of the Group’s activity. Make responsible use of the resources required for the Group’s activities. Develop actions to improve the efficiency of energy consumption and the use of clean sources. Share and encourage responsible practices among our suppliers. Raise awareness and train employees. Climate Change Water pollution Water resources Circular economy Environment 'We take care of the environment'
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45 44 INTEGRATED REPORT 2025 3. Our performance T otal emissions 126,100 Climate Change Mitigation We are aware that, in order to reduce emissions, we must first measure them. Therefore, in accordance with the GHG Protocol methodology and ISO 14064, we measure the sources of emissions from our own operations (scopes 1 and 2). We have also improved the calculation of scope 3 by using a greater amount of primary data and estimates with a low range of uncertainty. In addition, we have calculated the carbon footprint of feed at ISF by Farm Faes for the first time. This product joins the 33 Ingaso references for which the product carbon footprint has already been calculated. 2,076 125,15182,959 9497, 67 2 GHG emissions (tCO₂eq) 2025 Pharmaceutical and Healthcare Line GHG emissions (tCO₂eq) 2025 Animal Nutrition and Health Line Scope 1 GHG gross emissions Market based scope 2 GHG gross emissions Scope 3 GHG gross emissions Transition Plan for Climate Change Mitigation 2025-2050 In line with the Paris Agreement and with the aim of reducing greenhouse gas emissions associated with our activities, in 2025 we developed the Climate Change Mitigation Transition Plan 2025-2050. This plan has two main objectives: Reduce by 42% the scope 1 and 2 emissions by 2030, with respect to 2024 (phase I). Achieve climate neutrality by 2050: Reduce scope 1 and 2 emissions by 90% by 2050 compared to 2024 (phase II and beyond), and eliminate around 10% through neutralisation measures. 2030 T arget Neutralisation phase 2050 T arget 2025 Base year 2024 90% S1+S2 emissions 10% S1+S2 emissions absorbed 42% S1+S2 emissions T o achieve the objectives of the first phase, we have defined the measures that we will implement by 2030: Utilisation of waste heat from an industry near our plant in Leioa (Spain). Use of renewable diesel in commercial fleet vehicles in Spain. Acquisition of renewable electricity (with a certificate of guarantee of origin). Acquisition of renewable natural gas (with a certificate of guarantee of origin). Electrification of the vehicles in the commercial fleet of Faes Farma S.A. T otal emissions 92,706
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47 46 INTEGRATED REPORT 2025 3. Our performance 39.2% 1,047 MWh 100% consumption of renewable energy renewable energy production +147% compared to 2024 renewable electricity in Spain and Guatemala Adaptation Some of our environmental initiatives are already focused on adapting to the risks and opportunities posed by the climate crisis. Our global risk map categorises climate change adaptation risk as an ESG risk, reflecting the potential inability to adapt the business (strategic risk) and its facilities (physical risk) to the consequences of climate change. However, this risk did not enter the Group’s top 10 risks in 2025 after assessment. In line with the global map, we have examined the conclusions of the double materiality study in more detail, identifying the risks and opportunities (physical and transitional) relating to climate change to which the Group's main activities are exposed.4. The analysis focuses on the regions where we have factories (southern Europe and Central America) as this is where the impact could be most relevant to the business and where the companies with the highest turnover are located. F or this study, we considered the SSP5-8.5 scenario in the short, medium and long term. Conversely, the opportunities and risks of transitioning our activities in Europe have been analysed in accordance with a scenario consistent with the Paris Agreement, which limits global warming to 1.5°C. Once the new regulatory standards setting the minimum guidelines for conducting this analysis have been approved and published, we will continue to develop the model to enrich the global risk map - a key business decision-making tool. Key advancesGoal Improving the calculation of the main sources of Scope 3 emissions by prioritising the use of primary data. Registration of the carbon footprint of Ingaso Farm, T ecnovit and Capselos with the Ministry for Ecological Transition and the Demographic Challenge (MITECO). Ingaso has been recognised with the Reduzco seal for reducing its emissions consecutively over the last three years. Industrial symbiosis: completion of works to allow us to utilise steam from a neighbouring company, thereby reducing natural gas consumption at our Leioa (Spain) facilities. Energy with a guarantee of renewable origin: 39% of the energy consumed in 2025 came from renewable sources (28,288 MWh). In fact, 100% of the electricity consumed in both Spain and Guatemala comes from renewable sources. We generate renewable electricity ourselves through photovoltaic panels at the Derio (Faes Farma S.A.), Carnaxide (Laboratorios Edol), Sifi SpA, T ecnovit, Ingaso Farm and Capselos plants. Monitoring and improvement of the Transition Plan for Climate Change Mitigation Efficiency and sustainable sources of energy consumed at the facilities Below, we reflect the progress in 2025 towards reaching the targets set by our main milestone of the year in this area: the approval by the Board of Directors of the Group’s Transition Plan for Climate Change Mitigation 2025-2030. We continuously improve our daily management and implement pollution prevention measures as set out in our policies. Our facilities have treatment plants that allow us to reduce the pollutant load of wastewater. Through regular analyses, we guarantee compliance with legal discharge parameters. We are also aware of the indirect environmental impact of water pollution derived from the consumption of medicines throughout the product’s life cycle. Although most of these emissions occur after use by patients, the sector plays its part in prevention by designing medicines to be more environmentally friendly and by assessing the environmental risks of Water pollution medicines. (ERA, Environmental Risk Assessment), raising awareness about responsible use and disposal and collaboration with authorities (e.g., SIGRE) and other stakeholders in the sector. T aking on this responsibility strengthens our commitment to protecting aquatic ecosystems, public health and sustainable management. Similarly, we are closely monitoring the developments and challenges associated with future European legislation on extended producer responsibility for water pollution. 4 T o learn more about this analysis, see E1 IRO-1 in our Statement of Non-Financial Information and Sustainability Information 2025.
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49 48 INTEGRATED REPORT 2025 3. Our performance Ingaso Farm: cereals and plant protein for the production of finished feed. The optimal use of resources is part of the production planning of our factories through actions such as adjustments in production processes, the management of stock, equipment maintenance, process automation, and the reintroduction of rejected or surplus products whenever protocols allow. Our main impact in this area stems from the high water consumption involved in producing pharmaceuticals. We therefore continuously monitor the water consumption of our main plants and have implemented efficiency initiatives, such as reusing process reject water at our plant in Guatemala. Water resources and efficiency 233,963 m³ 0.37 m³ Water consumption of water consumed/ thousands of euros of income We make responsible use of the resources required for our activities, adhering to the principles of the circular economy throughout. Our approach is based on the premise that the best waste is that which is not produced. Inflow of resources In pharmaceutical production plants, the raw materials we use are active pharmaceutical ingredients (APIs), excipients, capsules and packaging/conditioning materials. The raw materials used in the Animal Nutrition and Health business line vary between the four plants: Capselos: microencapsulated premixes for which hydrogenated fats, emulsifiers, additives and esterified fatty acids are used. Ingaso Farm, T ecnovit and ISF: F or premixes and complementary feeds, different additives and raw materials (minerals, vitamins, amino acids, dairy products, etc.) depending on the end product. Circular economy Key advances Key advances Goal Goal Identification of main water-intensive processes at the plants of Derio and Leioa (Spain). Adjustments to production processes at the Faes Farma S.A. and Faes Farma Portugal plants: optimisation of the timing and frequency of water input for washing and minimisation of reject water in the process, thanks to adjustments to the configuration of the systems. As a result of the multidisciplinary working group, eco- design measures have been identified and applied to packaging, achieving: 192,488 leaflets removed from marketed CAPS products. New CAPS product references launched on the market whose cardboard packaging has the sustainable management certificate (FSC). Water efficiency: improvement of the water consumption coefficient per unit produced Environmental innovation in the product - Ecodesign +16% 344,460 leaflets removed from CAPS products marketed compared to 2024 products with cardboard packaging certified in sustainable management (FSC) +532% compared to 2024
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51 50 INTEGRATED REPORT 2025 3. Our performance 1,526 t of non- hazardous waste Waste generated by type of treatment 965 t of hazardous waste +7% -3.6% 111 t of waste recovered at the Derio plant (Spain) compared to 2024 non-hazardous waste generated at the Leioa plant (Spain), with respect to the production factor hazardous waste intended for disposal5 -15% compared to 2024 In addition, we indirectly generate other waste such as oil and grease from machinery, electronic equipment, cartridges, printer toner, etc. In 2025, we generated a total of 2,491 tonnes of waste, of which 61% was non-hazardous (1,526 t) and 39% was hazardous (965 t). In accordance with the waste hierarchy, the Group optimises waste management by applying measures such as the segregation of waste at source, contracts with authorised waste managers, and the monitoring of waste through chronological records. T o ensure the good management of waste generated at the end of the products’ useful life, we collaborate with various entities to comply with extended producer responsibility. We also collaborate with authorised managers to destroy expired and deteriorated medicines during the storage process. 5 F or comparative purposes, the 2025 data excludes the SIFI and Edol plants, acquired in 2025. Resource output: waste generation As is typical for these sectors, we generate the usual waste in both lines of business. Pharmaceuticals and Healthcare: Waste from medicine packaging, consisting mainly of cardboard and plastic. Contaminated plastic or metal packaging. Solid urban waste. Wood pallets. Animal Nutrition and Health: Plastic packaging. Paper or cardboard packaging. Product unfit for consumption (product from cleaning or sweeping, product in poor condition, product that has reached the end of its useful life, etc.). Packaging contaminated with hazardous waste. Key advancesGoal Elimination of leaflets in marketed CAPS products: as well as reducing consumption of raw materials, it prevents the need to manage it as waste at the end of its useful life. Reduction of non-hazardous waste generation in Leioa (Spain) thanks to the reuse of drums in the production process, as these drums were previously managed directly as waste. 92% of waste recovered in Derio (Spain) thanks to managers prioritising recovery treatments. Waste generation prevention Improving waste valorisation 798 other recovery operations 1,083 other recovery operations 97 other disposal operations 220 other disposal operations 51 landfill 134 landfill 20 incineration 7 incineration 83 recycled
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53 52 INTEGRATED REPORT 2025 3. Our performance Aligning people with purpose and values is based on the Code of Ethics and Conduct, our mandatory reference point when it comes to acting honestly, fairly and responsibly. The decision to foster this link arises from the need to align our culture with the new skills and abilities necessary for achieving our strategic objectives. Personal and professional development fosters holistic growth and strengthens our ability to overcome business and environmental challenges. Through our training programme, we ensure that staff receive training tailored to their roles and needs, and we ensure the ongoing development of their skills and abilities. Training needs are reflected in the Annual Training Plan, which we review and evaluate at the end of the year. Shared purpose: people who are aligned and committed to the purpose Developing our talent 49% of employees have already completed training in the new values and skills of the corporate culture 3.2 People It is the knowledge, commitment and creativity of our people that drive our innovation and growth. That’s why we promote work environments that encourage wellbeing, equal opportunities and professional development. Environments of equality, diversity and inclusion Skills development Developing our leaders Succession plans “We listen to improve”: measure the integration of the new culture Shared purpose: people who are aligned and committed to the purpose Promote a positive impact on the community Expansion of corporate health and safety management model People Key advancesGoal The identification and approval of the Group’s new purpose, vision, mission and values. The new culture was implemented in most of the Group’s companies through internal surveys, training, workshops, and information campaigns. In LA T AM and Portugal, we launched additional measures such as the ‘Live our philosophy’ campaign with nominations for values and interactive videos, as well as the adaptation of content and the organisation of local information sessions, to reinforce the corporate culture. people who are aligned and committed to the purpose 2026 T arget: 90% of employees trained 'We take care of people'
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55 54 INTEGRATED REPORT 2025 3. Our performance As a tool to carry out and follow up on training, we have Faes Farma Academy. This platform brings together all of the Group’s training resources, making content more accessible and efficient. Thanks to our talent development initiatives, we are equipping our professionals with the capacity and preparation needed to face future challenges and/or occupy key positions. These initiatives promote adaptability and a culture of innovation. Training hours by professional category in 2025 219 CEO and Senior Management 429 Executives 8,240 Managers 38,943 Professionals 47, 8 3 1 hours 47, 8 3 1 hours average hours of training 21.6 of training per employee Key advances Key advances Goal Goal Design of the skills management system for all staff, starting with identifying key skills and defining objective, systematic processes for detecting each person’s potential and creating individualised strategies. Second consecutive year with a sustained improvement in the pay gap. Implementation and monitoring of Equality Plans: presentation of monitoring reports and validation of measures. Preparation and dissemination of the Corporate inclusive communication guide: a procedure that provides simple guidelines for using more inclusive language in emails, meetings, documents, and internal and external materials. Establishment of the working group to define the internal promotion procedure at Faes Farma S.A. Its objective is to establish clear and transparent criteria that guarantee equal opportunities. Strengthening the implementation of the selection policy in subsidiaries, guaranteeing fair processes aligned with our commitments. Implementation of specific protocols against harassment and discrimination in Chile, Mexico and Ecuador. Work climate surveys in Portugal focused on equality and diversity. Launch of the Faes Farma one leadership project whose objective is to define and consolidate a unique leadership model, aligned with the Group’s culture and values, capable of inspiring, motivating and guiding teams. After identifying 68 leaders, we carried out a participatory reflection to define the expected skills and behaviours in positions of responsibility that align with our culture. Identifying the strengths and areas for improvement of current leaders in order to develop personalised training programmes. Skills development system Promoting equal treatment and opportunities Development of leadership that is aligned with the Group’s culture and values Equality, diversity and inclusion In addition to the Code of Ethics and Conduct as a general framework, we have specific policies and procedures in place to ensure equality and respect for diversity: Diversity, equity and inclusion policy Policy for the prevention of and action against all types of harassment and discrimination and its associated protocol Recruitment and selection policy The Equality Committee is the body for collaboration between the company and the workers’ representatives. These working groups are responsible for monitoring, reviewing and establishing the actions planned in the Equality Plans of Faes Farma S.A., Ingaso Farm and T ecnovit. They manage communications and concerns regarding equality that may have arisen and also handle complaints in this area received through the integrity line.
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57 56 INTEGRATED REPORT 2025 3. Our performance Diversity in numbers 1,205 816 1,524 1,010 328 2111,476 959 829 554 Workforce by gender Percentage of women in Senior Management* Employees with disabilities Workforce by age T otal 2,681 T otal 1,775 T otal 2,681 T otal 1,775 Men Women <30 years 31-50 years >51 years 2025 2024 2025 2024 2025 17 2024 12 *Includes the CEO. 2025 21% 2024 11% Improvement of the Group’s pay gap +4% +6% +3.6% 202520242023 Health and safety In this area we are governed by our Health and Safety Policy which works on three central axes to create a preventive culture: The safety and health committees, commissions and improvement groups identify the needs of the workforce in relation to occupational safety and health. The Unifikas channel is a prevention management tool that facilitates the registration of incidents and accidents, and the definition of action plans. It also allows suggestions and complaints regarding safety and health to be made. Training on health and prevention Prevention of occupational risks Promotion of health Key advancesGoal Implementation of the corporate software (Unifikas) for management of safety and health at ISF by Farm Faes. Faes Farma Central America and the Caribbean (Guatemala), Faes Farma Portugal, the Animal Nutrition and Health business line, and Faes Farma Peru adopt the corporate management model, which includes the development of specific training and protection plans, among other actions. Expansion of the corporate model of occupational safety and health management to all subsidiaries
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59 58 INTEGRATED REPORT 2025 3. Our performance Accident rates Frequency rate Severity rate 0.23 0.236.89 7 .54 20252024 2024 2025 100% own staff with health insurance coverage Sifi SpA, certified under the ISO 45001 Positive impact on the community Creating a positive impact on the community starts with our own actions: we generate quality direct and indirect employment opportunities in the countries where we operate. Thus, by the end of 2025, 93% of our employees had a permanent, full-time contract. Beyond the recruitment of staff, our Sustainability Policy establishes how we promote local socio-economic development through investment in education and training by supporting young professionals, paying taxes6, sponsorships and donations to foundations, NGOs and other institutions with a social component. Key advancesGoal The ‘Faes Farma Y oung People’ programme in Spain has established a general framework for formalising collaborations and agreements with universities and educational centres, offering training scholarships. €145,669 in contributions to foundations and non-profit organisations. Encourage young talent Promote and establish a social impact system Participation in sectoral associations Through our participation in these organisations, we contribute to the development of fields such as pharmaceuticals, chemicals, cosmetics and health. 6 More information about the income taxes paid can be found on page 235 of the 2025 Statement of Non-Financial and Sustainability Reporting. Pharmaceuticals and Healthcare Business Line Farmaindustria Confindustria Dispositivi Medici (CDM) Associação para Investigação Biomédica e Inovação em Luz e Imagem (AIBILI) Laboratório de Estudos Farmacêuticos (LEF) Parenteral Drug Association (PDA) Basque Health Cluster Spanish Society of Medicinal Chemistry (SEQT) Corporación Punto Azul The National Association of Perfumery and Cosmetics (ST ANPA) Association for Self-Care in Health (ANEFP) Nutrition and Animal Health Business Line Spanish Manufacturers-Exporters Association of Agricultural Machinery and its Components (AGRAGEX) National Association of Pig Farmers (ANPROGAPOR) Business Association for Animal Health, Nutrition and Welfare (ADIPREM) ACUIPLUS Cluster Spanish Cluster of Pig Producers (I+ PORC) Catalan Association of Pig Producers (PORCA T) Catalan Association of Compound F ood Manufacturers (ASF AC) Andalusian Regional Association of Pig Farmers (ARAPORC)
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61 60 INTEGRATED REPORT 2025 3. Our performance Sponsorship of conferences, workshops and courses Furthermore, with the aim of promoting knowledge among our stakeholders, we sponsor conferences, workshops and courses. These include: Spain7 Congress of the Spanish Society of Pulmonology and Thoracic Surgery (SEPAR) Congress of the Spanish Society of General Practitioners and Family Doctors (SEMG) ‘Porc d'Or Award’ organised by IRT A (Institute of Agrifood Research and T echnology) National F orum of Iberian Pig Veterinarians Portugal Sociedade Portuguesa de Otorrinolaringología e Cirurgia da Cabeça e Pescoço Patient care days - Admedic Various events organised by the Portuguese Society of Ophthalmology Italy Joint Congress of the Italian Society of Ocular Microsurgery and Ophthalmoplastic Surgery (AIMO-SISO) Congress of the Italian Society of Corneal and Ocular Surface Transplantation (SITRAC) Congress of the European Society of Cataract and Refractive Surgery (ESCRS) Chile Annual congress of the Chilean Society of Gastroenterology Annual congress of the Chilean Society of Otorhinolaryngology Nigeria Pharmaceutical Society of Nigeria (PSN) National Conference Nigerian Rheumatology Society Conference Nigerian Dermatology Society Conference 7 In accordance with the transparency obligations derived from the Code of Good Practice for the Pharmaceutical Industry, each year we publish on our corporate website the collaborations with patient organisations and transfers of value to healthcare professionals and organisations. “We listen to improve” Collective bargaining and social dialogue We operate in countries with diverse social relations and different regulatory frameworks. In regions where they exist, collective agreements cover the entire workforce. These agreements between the company and employee representatives mean that we have measures in place to improve working conditions and work-life balance. Examples of these measures include: Initiatives for organising working time: There are flexible working hours at Faes Farma S.A., SIFI SpA and the LA T AM subsidiaries, as well as at the Animal Nutrition and Health business line. These are adapted to local legislation and departmental needs. Faes Farma S.A. and SIFI SpA also offer the option of remote working. Improvements and social benefits: Company canteen or meal vouchers in Spain and Italy. Faes Farma S.A.: life and accident insurance, supplement for sickness and accident leave. Nursery school and wellness centre at SIFI SpA. Initiatives related to improvements in leave at Faes Farma SA: paid leave for certain medical appointments and extension of the reduced working hours leave for legal guardianship up to 14 years of age. Internal communication T o continue with the rollout of the Group’s Internal Communication Plan, we have communication channels between the company and its employees (see section 2.1 We listen to our stakeholders). Key advancesGoal A town hall meeting on the occasion of the acquisition of SIFI, as a direct communication channel to reinforce the corporate message in the geography most impacted by the integration and to promote cultural alignment. The use of the corporate library 'DOC FF' is being strengthened, as it is now the single, centralised repository for corporate and local policies, regulations, plans and documentation. Dissemination of corporate and health content through the intranet and newsletters. Notably, publications on the responsible and ethical use of information and artificial intelligence stand out, as do those offering medical and wellness advice. These publications reflect our ongoing commitment to the health and care of people. Publications to mark key dates related to diversity, equality and health, such as: International Women’s Day International Day of Women and Girls in Science, which was celebrated with a video featuring testimonials from female scientists in the Group. Pride Day World Blood Donor Day Deployment of the Internal Communication Plan
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63 62 INTEGRATED REPORT 2025 3. Our performance The town halls are consolidating themselves as the main space for communication between senior management and staff We promote two- way communication through the suggestions and enquiries channel Comunica-T As part of developing the new Faes Farma culture, we plan to implement a continuous listening procedure for employees. This will measure the level of commitment to and integration of the new culture, as well as identifying areas for improvement on which to focus in order to become a benchmark. 3.3 Patients We are committed to understanding the needs of patients and their journey - that is, all the stages a person goes through from perceiving a health problem to experiencing the impact of treatment on their life. Only by understanding their needs in detail can we offer solutions that best meet them. Based on these needs and areas for improvement, we have designed the measures forming part of the Patients pillar of the 2025–2030 Sustainability Strategy: Furthermore, as members of Farmaindustria, we are committed to the principles that underpin relationships between the pharmaceutical industry and patient associations, as set out in the Pharmaceutical Industry’s Code of Good Practice: independence, mutual respect, non-promotion, transparency and multi-sponsorship. ‘The patient, our priority’ Innovation in product accessibility aimed at vulnerable groups ‘Bridges of Knowledge’: educated and informed patients and consumers ‘Clinical research and post-marketing studies with the patient’: Participation and transparency ‘Leaders in Health’ with the patient at the heartPatients
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65 64 INTEGRATED REPORT 2025 3. Our performance Our end-users differ according to the product lines: Medicinal products Patients Consumers Pharmaceutical and Healthcare Line CAPS* * Cosmetics products, foods, food supplements and medical devices. First symptoms and consultation Treatment and follow-up Patient’s perspective Need Role of Faes Farma Diagnosis and therapeutic decision Long-term cohabitation (if chronic illness) Post treatment Patient journey throughout the care and therapeutic process Knowing who to turn to and when The patient’s understanding of the problem Clear and non- alarmist information Information and training for patients: health education, rigorous and accessible information, in partnership with patient associations Training for healthcare professionals Support tools for prevention, early detection and decision- making by healthcare professionals: Medical Information Service Interaction with patients: trial design and performance process Product and information accessibility, adapted to different patient profiles Consent Information given to patients in a clear and understandable way Information and training for patients: Health education: rigorous and accessible information Collaboration with patient associations Post-marketing studies: continuous improvement Pharmacovigilance Unit Collaboration with patient associations Post-marketing studies: continuous improvement Information and training for patients: patient support programmes… Product and information accessibility: user- friendly formats and clear leaflets Pharmacovigilance Unit Product quality Post-marketing studies: continuous improvement Information for patients about treatments and adherence to treatment Product and information accessibility, adapted to different patient profiles Support and training for healthcare professionals: solid clinical evidence for diagnosis and decision- making Clear information about the illness Impact on life Therapeutic options What to expect from the treatment and side effects Support and trust Clear instructions Managing side effects Integrate the treatment into their routine and maintain their motivation, regardless of the results Emotional and social support to integrate the illness into their life Continuous information Quest for autonomy and control Concerns regarding potential effects Information about ‘What comes next’ Emotional support Reconstruction of their life Clear information about the process and treatment Addressing therapeutic uncertainty Clinical trial (if applicable)
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67 66 INTEGRATED REPORT 2025 3. Our performance Medical Information Service It is designed as a formal communication channel between the Group’s companies and healthcare professionals, patients, and patient associations. It establishes processes for responding to medical enquiries and provides all the necessary medical information in each case. Patient-centered clinical trials Product accessibility Pharmacovigilance Unit The development of all new drugs involves evaluating their efficacy and safety through clinical trials with patients. Patients are kept informed throughout the process, starting with a clear explanation of the study’s objectives, potential risks and benefits, and expectations. This information is provided in simple terms to enable them to give informed consent after clarifying any doubts they may have. Two-way communication is maintained throughout the trial until its completion, when participants receive a thank-you letter alongside the main results. In the matter of innovation in product accessibility aimed at vulnerable groups, our goal is to develop formats that facilitate the administration and consumption of medications, considering factors such as size, taste, and texture; in addition to identifying, analysing, and implementing measures that facilitate access to information on medications and CAPS products. The Pharmacovigilance Unit (UFV) is responsible for identifying, quantifying, evaluating and preventing risks associated with medicine use, as well as protecting public health. The UFV works to minimise the inherent risks of medicines. In addition, it is responsible for analysing the benefit/risk balance of the medicines for which the Group holds the marketing authorisation. We coordinate the training of subsidiaries’ pharmacovigilance teams within a shared corporate framework, while considering local specifics. We also continue to provide annual training for all company departments to help them identify adverse reactions and special situations, and learn how to respond to them. T o protect patients, we implement specific processes for follow-up, monitoring and resolving any negative incidents that may affect trial participants. This ensures that any potential negative impact is investigated and managed in accordance with Good Clinical Practice (ICH-GCP). The resolution of the incident and the comprehensive protection of the participant are both guaranteed. Key advances Key advances Goal Goal Invitation to the Association of Crohn’s and Ulcerative Colitis Patients (ACCU) to the scientific conference organized by the Group, to learn about their experiences and needs, especially focused on clinical trials. Implementation of satisfaction questionnaires at the end of clinical trials to gather patient feedback. Study of formulations/reformulations: We are currently working on four new formulations, including the pharmaceutical development of mesalazine powder (Azzasol) and dexketoprofen ODT (orally dispersible tablets), whose formats facilitate their intake compared to solid tablets. T o integrate the perspective and needs of patients into clinical trial protocols T o facilitate the consumption and accessibility of information about our products in order to improve patients’ quality of life Our headquarters in Spain and our subsidiaries have various channels through which they can receive reports from customers, patients and healthcare professionals regarding such situations. All communications are registered, processed, analysed and reported to the competent health authorities in accordance with the requirements established in the applicable legislation. 100% of the target audience has completed the annual pharmacovigilance training
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69 68 INTEGRATED REPORT 2025 3. Our performance Quality of medicines Post-marketing studies: continuous improvement Quality and monitoring of CAPS products The Quality Policy of Faes Farma S.A. reflects our commitment to the safety, efficacy and reliability of medicines, both in manufacturing and in the data generated for their registration. This commitment to quality oversight also extends to medicines manufactured by third parties. The Quality department - together with other areas - manages the investigation phase of any quality In order to continue improving our positive impact on people's health, we need to gain a better understanding of the effectiveness and safety profile of our medicines and CAPS in real clinical practice, as well as in relation to real patients and consumers. Therefore, in the field of medicines, We develop post-marketing clinical studies - both clinical and observational trials - of our main drugs already on the market. Currently, two studies stand out: An evaluation of the importance of the speed of action of an orodispersible formulation in improving the signs and symptoms of the disease, for which the study’s recruitment, experimental phase and data management have already been developed. Analysis of the improvement of symptoms and quality of life in children aged six years and older with allergic rhinoconjunctivitis being treated with one of the Group’s medicines. In this case, the pre- recruitment management and the experimental phase have been completed. The CAPS product quality management system seeks to guarantee lawfulness, quality, efficacy and safety in the consumption/use and distribution of cosmetic products, foods, food supplements and medical devices. Certified with ISO 13485, this system includes the Quality Policy and a series of procedures, including those related to the monitoring of medical devices and cosmetics, the management of product incidents and returns, technical queries and complaints and the establishment of preventive and corrective actions. complaints received to identify the cause, which can be classified into four kinds: "human”, “equipment and/or system”, “process” and “others during the distribution phase”. This allows identifying possible preventive and corrective measures such as training, specific actions and the updating of documentation. Preventive actions are always subject to an effectiveness analysis. If the result is low, the measure is subject to re-evaluation. Regarding CAPS products, we conduct satisfaction tests in order to obtain objective information on consumer satisfaction with new releases, to have data to design materials and leaflets, and to detect areas for improvement in the communication of the releases. In the latest tests carried out on food supplements (menopausia and intimasense) and cosmetics (spray glacial CBD), we have incorporated healthcare professionals to understand consumer preferences and how to validate the product in these groups. Just as in pre-marketing clinical trials, we strive to prioritise the needs of patients in post-marketing studies of our products. This involves ensuring clear, transparent and two-way communication, which enables us to enhance the quality of life for patients and consumers. Within the framework of ISO 13485, we provide mandatory training on the quality of medical devices for employees in areas that come into contact with these devices, such as commercial, purchasing, logistics and management. We also provide training on surveillance for all Faes Farma S.A. employees, as they are potential identifiers of adverse reactions. 93% of the target audience has completed the annual course linked to ISO 13485 94% of the target audience has completed the annual medical device surveillance course ISO 13485 at Faes Farma S.A.
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71 70 INTEGRATED REPORT 2025 3. Our performance 3.4 Conduct We integrate the best practices of good governance, ethics, integrity and transparency in our daily operations and management. T o achieve this, we have various policies such as Code of Ethics and Conduct, Code of Ethics and Conduct for Third Parties, Sustainability Policy, Internal Information System Policy and the Policy against corruption and bribery. Strengthening our culture: Code of Ethics and Conduct Criminal compliance Ethical and transparent business Conduct FinancialStrategic Operational Compliance Environmental, social and corporate governance Our Risk Control and Management Policy establishes the general framework for action, procedures and responsibilities of the Risk Management System for the entire Group. We ensure that all significant financial and non-financial risks are identified, assessed, mitigated, monitored on an ongoing basis and reduced to accepted risk appetite and tolerance levels, before finally being approved by the Board of Directors. Risk Management System This assessment is used to obtain the Group's Risk Map, which is reviewed and reassessed annually, or more regularly if necessary. The Risks Coordinator reports at least annually to senior management and the Audit and Compliance Committee about the risk management system, The Audit and Compliance Committee is responsible for evaluating and supervising them, while Senior Management is responsible for identifying and evaluating them according to consistent criteria relating to impact, probability and speed of occurrence. Risks are categorised into five types: The measures adopted within the Conduct pillar of our Sustainability Strategy 2025-2030 are: providing a consolidated view of the Group’s Risk Map and, in particular, of the evolution of the main risks and other relevant aspects. ‘We make decisions with ethics and integrity’
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73 72 INTEGRATED REPORT 2025 3. Our performance Strengthening our culture: dissemination and training In 2025, we initiated a process of reflection on our corporate culture, recognising the need to integrate the growing diversity within the Group resulting from its inorganic expansion and geographical spread in recent years. T o lead this process we created the Culture T eam, and launched a global survey culminating in the definition of the new purpose, mission, vision and values. The presentation of this new culture to shareholders, investors, and analysts took place at the Capital Markets Day 2025, and staff were informed at a specific town hall, in addition to the ‘We are all part of the change’ campaign and face-to-face and virtual workshops in Spain, LA T AM and Portugal. On the other hand, we have also updated the Code of Ethics and Conduct —with the inclusion of the new purpose, mission and values— and we have informed and trained the entire staff on it via the Faes Farma Academy platform. Additionally, we have provided numerous anti- corruption and anti-bribery (ABAC) training sessions to all Group employees, and quarterly sessions to risk departments on the Code of Good Practices for the Pharmaceutical Industry. In the case of the sales network, receiving bonuses is subject to the mandatory training assigned, which includes training on the Code of Ethics and Conduct and the Code of Good Practices for the Pharmaceutical Industry. 2,201 persons received training on responsible business conduct issues Mechanisms and procedures for promoting the entrepreneurial culture T o receive enquiries and communications regarding any regulatory breach by a member of the Group or by third parties in contact with the Group in the course of their work, we have a confidential and protected internal reporting channel, in accordance with the strictest regulations on whistleblower protection and data protection. Managed through the EQS Integrity Line platform, this channel is accessible via the corporate website and the intranet. The Ethics Committee (responsible for the Internal Reporting System) is in charge of managing the channel and the complaints received through it, under the supervision of the Audit and Compliance Committee. It also manages and investigates possible regulatory breaches, including cases of corruption and bribery, as well as possible violations of the Code of Ethics and Conduct. It meets on a regular basis with the objective of ensuring that all actions, decisions and behaviours follow our values, while fostering a culture of transparency, integrity, accountability and respect. In 2025 there were no confirmed cases of corruption and bribery.
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75 74 INTEGRATED REPORT 2025 3. Our performance 3.5 Partnership Our suppliers, contractors, and business partners play an essential role in achieving our goals. Aware of this, we have integrated them into the Sustainability Strategy 2025-2030 within the pillar Partnership with six measures. 'We are committed to building trust through active listening, respect, and a spirit of value creation' ESG due diligence in our supply chain: Shared commitment with our suppliers ESG due diligence in our supply chain: Risk assessment, ESG performance and control programme Commitment to local suppliers Due diligence in our supply chain: Fight against deforestation Logistics decarbonisation plan ESG rating assessed by business partners Partnership ESG due diligence in the value chain Since 2025, Faes Farma S.A. has had a Sustainable Procurement Policy which establishes the general principles for integrating sustainability into purchasing and procurement processes. This policy is integrated into the ISO 20400, strategic framework to ensure that purchasing decisions take into account environmental, social and ethical impacts throughout the supply chain. One example of this is the prioritisation of the guarantee of renewable origin when contracting for electricity consumed in Spain. Along with this framework, we have obtained UNE 15896 certification on Value Added Purchasing Management, reflecting the continuous improvement and value contribution of the purchasing function. Shared commitment Our commitment to the value chain is reflected in the Code of Ethics and Conduct for Third Parties, applicable to all third parties (suppliers of goods and/ or services, distributors, licensees, co-marketers, collaborators and business partners) who have a direct or indirect relationship with the Group. In addition to ensuring compliance with the relevant legislation in each country, this Code establishes the principle of due diligence to prevent, detect and eliminate any irregular conduct within the organisation and its value chain. The general procurement conditions of Faes Farma, S.A. establish the overall criteria (including an anti- corruption clause) that must be met by purchases made. By accepting them, suppliers declare that they are aware of, approve of and adhere to the terms of the Code of Ethics and Conduct for Third Parties. This commitment was extended and communicated to licensees at the end of 2023. Since 2025, we have also had a Sustainable Procurement Policy which establishes the general principles for applying sustainability principles in supply chain-related processes. And we have obtained dual certification ISO 20400 Sustainable Procurement and UNE 15896 on Value Added Purchasing Management. ESG Performance We are continuing to work on formalising and implementing a single system for evaluating and controlling ESG performance. In 2025, Faes Farma S.A. started using the EcoVadis platform, a tool that enables us to identify potential ESG risks posed by suppliers, assess their performance and suggest improvements to our key partners in the supply chain. Currently, we have different homologation protocols depending on the companies within the Group: Pharmaceutical Line. Suppliers of raw materials and packaging are the main suppliers. Given their link to product quality, they are evaluated—either during approval or post-contract—based on environmental and social criteria, among others. Likewise, environmental and social certifications are also requested from all logistics and transport providers. Healthcare Line. In the product development phase, and with the support of the working group formed to promote eco-design, work is underway to include measures in this area in CAPS products and marketing materials. This process begins with an assessment of the characteristics that affect its recyclability, recycled content and/or availability. Based on that, the possibility of applying alternatives or prioritising one product over another is assessed. 100% of the members of the purchasing department of Faes Farma S.A. trained in sustainable procurement
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77 76 INTEGRATED REPORT 2025 3. Our performance Commitment to suppliers: payment terms Meeting payment terms is not just an ethical issue; it is also a key factor in maintaining a strong, competitive industrial sector. In our case, payment deadlines are included in the terms agreed with suppliers and may vary depending on the company and type of supplier. Our commitment is to comply with the maximum legal period. The range of typical payment terms varies across the regions in which we operate: Europe: 30 to 120 days. LA T AM: from cash payment to 60 days. Other: from cash payment to 90 days. * As from the date when the contractual or statutory payment period begins to be calculated. 51 days 71% 0 Average payment time* Payments that comply with the usual payment deadlines Legal proceedings currently pending for payment delays 3.6 Research and development (R&D) R&D is fundamental to the strategy and business model, from both the product perspective and the perspective of innovation and the incorporation of new technologies. Pharmaceutical and Healthcare Line We focus on finding solutions to unmet needs in scientific areas that are relevant to our stakeholders. Once the unmet medical needs of patients have been identified, our approach involves the following: Biology and medicinal chemistry Pharmaceutical development Clinical research Identifying new molecules through the rational design and development of new and effective chemical entities supported by testing. Developing new and improved manufacturing processes to produce medicines on a large scale in an effective, economical and environmentally- friendly way. Having molecular and cellular biology laboratories, as well as a team and facilities for developing in vivo models. The active substances used to develop a pharmaceutical product can come from in-house lines of research or can be molecules that are already known. Introducing new pharmaceutical and particle engineering technologies. Having a multidisciplinary team working on all aspects, covering the formulation, science and technology of processes, as well as laboratory analytics. The clinical development of new medicines involves conducting clinical trials to test their efficacy and safety. Conducting several types of clinical trials simultaneously, in accordance with the highest quality standards and following European regulations, guidelines and frameworks of best practices for clinical trials, as well as complying with the specific requirements of the authorities in every country. Scope 3, improving traceability and data quality This year, we have initiated a process to reduce the uncertainty surrounding the origin of Scope 3 indirect emissions from categories 1 (purchased goods and services) and 9 (downstream transport and distribution). Thanks to the collaboration of Faes Farma S.A.’s suppliers and logistics companies, the proportion of information derived from primary data is increasing. This includes emissions linked to purchased raw materials and estimates of emissions generated when shipping our products, which have a lower degree of uncertainty. Having traceable, high-quality information enables us to precisely identify the main sources of emissions and design effective, traceable reduction plans that align with the reality of the value chain. Animal Nutrition and Health Line. Before starting a relationship with a supplier, we analyse their environmental and social performance through questionnaires, such as the supplier approval questionnaire and the certification questionnaire. Since 2025, in the assessment of T ecnovit suppliers, sustainability certifications have been included as an additional evaluation criterion. F or its part, Faes Farma Colombia has included compliance with local regulations regarding environmental management in the audit process for critical suppliers.
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79 78 INTEGRATED REPORT 2025 3. Our performance Product innovation Expansion of our therapeutic areas in this area was achieved through the integration of the Edol and SIFI subgroups in 2025. Bilastine-based products Globally leading antihistamine Polyhexanide- and carteolol-based products Solutions for various eye conditions, including dry eye, glaucoma, keratitis, infections and inflammation Calcifediol-based products Increased efficiency in the treatment of prohormone D deficiency Hydrophobic and hydrophilic lenses F ocused on cataract surgery Mesalazine-based products Treatment for ulcerative colitis, with multiple launches planned Moisturising emulsions for sensitive skin Allergic diseases Ophthalmology Bone immunomodulation Ophthalmology (intraocular lenses) Gastrointestinal disorders Dermatology Collaborative ecosystem in R&D We collaborate with universities, research centres and technology partners to enhance our capabilities and generate knowledge. Notable collaborations in 2025 included: Eversana in the development of a digital app for home monitoring of patients with rare ophthalmological diseases. Main associations and entities linked to quality, technological development and R&D with which we collaborate BHC (Basque Health Cluster) Gaiker F oundation NIC (Nagusi Intelligence Center) SEQT (Spanish Society of Medicinal Chemistry) CIC bioGUNE Innobasque CEIB (International Centre for Entrepreneurship in Vizcaya) CLUSTER4EYE (Ophthalmology and Vision Sciences Cluster) SESOC (Spanish Society of Ocular Surface and Cornea) CNR-IPCB (Italian National Research Council - Institute of Composite Polymers and Biomaterials) IO-CSIC (Institute of Optics of the State Agency Higher Council for Scientific Research) EFMC (European F ederation for Medicinal Chemistry) SEFIG (Spanish Society of Pharmaceutics and Pharmaceutical T echnology) Achucarro Basque Centre for Neuroscience EVER (European Association for Vision and Eye Research) Furthermore, we have collaboration agreements with training entities such as the University of the Basque Country, University of Navarra, University of Catania, University of Lisbon, University of Coimbra, the Novia Salcedo F oundation, the Esame F oundation and vocational training schools linked to the chemical and pharmaceutical sector. The Gazi University (Türkiye) in promoting preclinical research to evaluate new therapeutic strategies in eye infections. The University of Lisbon with two doctoral scholarships for the development of ophthalmic ointments and the treatment of rosacea. Milestones Approval of paediatric bilastine in Europe. Dossier validated and first round of questions completed with the Reference Member State for the evaluation of Mesalazine 1.5 g gastro-resistant tablets. Approval of Robaxin 1000 and 1500 mg in Europe. Approval of the Akantior reimbursement in Spain. +27% compared to 2024 €30.2 M Investment and spending on R&D exceeding from own funds
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81 80 INTEGRATED REPORT 2025 3. Our performance Animal Nutrition and Health Line R&D collaboration ecosystem We work jointly with third-party farms, where Ingaso Farm and T ecnovit conduct tests for the research of and innovation in new products and the development of new alternatives for the improvement of their products in the pig sector. Research projects are also carried out with public funding individually or in collaboration with clients (CDTI, HAZITEK, etc.), which promote collaboration with research centres (University of Murcia, University of Cordoba, Complutense University of Madrid). As a driving force for the creation of scientific knowledge, we collaborate with universities on the development of doctoral theses and scientific publications. We also work with the animal production departments of international universities, such as those in Minas Gerais (Brazil) and Kansas City (United States), on specific projects. Additionally, we organise current scientific dissemination symposia with others. Investment in and commitment to R&D enables improvements to be made to the efficiency, quality and effectiveness of products and services, which contributes significantly to societal well-being and economic development. Innovation in products The main lines of new product development revolve around achieving efficient and sustainable animal protein production, as these activities show: Development of feed formulas (cores) for piglets that optimise their growth. Development of nutritional solutions (supplements) of natural origin for animal feed with properties for reinforcing and protecting digestive health, which will reduce the excessive use of drugs and metals, to help curb the emergence of resistance to antibiotics and other drugs: Development of an Iberian genetic model that optimises production. Development of nutritional modelling for more precise adjustment of feeding programmes in all phases of pig production. Product development for quality improvement of the shell and bone health of chickens. Impronta project Primazure products Products to treat PFTS (Periweaning Failure to Thrive Syndrome in piglets) PROBIPIG project Products against coccidiosis 3.7 Information security and data protection Based on this principle, we have developed a management framework that is aligned with the organisation’s objectives, as well as with the requirements of current regulations, and the provisions and best practices of ISO/IEC 27001. Information Security and Data Protection Policy (PSIPD). This enables us to guarantee the protection of information services and assets managed through ICT , as well as the processing of personal data and the rights of data subjects. Protecting intellectual property and personal data protects a fundamental asset in maintaining stakeholder trust. Code of use of IT tools. Included as an annex in the Code of Ethics and Conduct. Information usage rules. Its aim is to ensure all staff use the technological resources provided appropriately, responsibly, and lawfully. In order to publicise this management framework, training sessions are held regularly, informational capsules are sent out, and newsletters are sent to all Group staff. 606 hours of information security training Certification ISO 27001 Faes Farma S.A. Milestones PROBIPIG Project: Initial trials for the validation of the probiotic strain and the formulation of the supplement to improve the porcine microbiota of breeding sows and their piglets, removing the need for conventional medications. Products against coccidiosis: product validation phase that avoids chemicals thanks to a natural approach. Range of liquid trace element and amino acid supplements for piglets: experimental trials of the prototypes on farms until they are ready for commercialisation.
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83 82 INTEGRATED REPORT 2025 3. Our performance Governance regarding data protection and security Data security and privacy is an important issue for the Group because poor management can lead to reputational and financial risks. T o manage these risks, the data security and protection process involves several bodies and roles: The Information Security Committee meets every six months, and the Data Protection Officer (DPO) participates in those meetings in which personal data privacy issues are discussed. Senior Management Information Security Committee Data Protection Officer (DPO) Chief Information Security Officer (CISO) Service Managers Information Manager Data Processor System Managers and systems staff First level Second level Third level F ourth level Key advancesGoal Change of CSOC service operator (Cyber Security Operations Centre): transfer of the service to another provider. Review of the internal procedure for managing personal data security breaches and information security (including cybersecurity) at Faes Farma S.A. Beginning the rollout of a new document classification scheme involving classification, labelling, and application of operational access restrictions. Improved monitoring and incident response capabilities Information protection Our performance
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85 84 INTEGRATED REPORT 2025 3. Our performance 3.8 Financial performance +23% compared to 2024 €627 M T otal revenue €89.3 M EBIT8 €85.4 M €118 M EBITDA5 €219.3 M Revenue from top 3 molecules €79.7 M Net profit7 +3% compared to 2024 +11% compared to 2024 €132.8 M Adjusted EBITDA6 ⁵Operating profit before depreciation and impairment. ⁶EBITDA excluding M&A and extraordinary costs of the Derio plant. ⁷Net profit of the parent company. ⁸Operating profit. 9Profit before taxes. BAI9 Revenue by business line⁸ Revenue by portfolio line 13% Animal Nutrition and Health 52% Other Pharma 35% T op 3 molecules €230.8 M Pharma International Pharma Iberia Licences €79.6 M €551.7 M Animal Nutrition and Health Line Pharmaceutical and Healthcare Line (without licences) +21% compared to 2024 +52% compared to 2024 €207 .7 M €113.2 M 8 Includes other items (non-commercial income and exchange rate impact) worth €-4.3 M.
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87 86 INTEGRATED REPORT 2025 3. Our performance F oreign Institutional 10.79% Stock market performance and shareholders The parent company Faes Farma, S.A. is listed on the Bilbao, Madrid, Barcelona and Valencia stock exchanges, and its shares are traded on the continuous market. Its ownership is distributed as follows: Minority shareholder National Institutional Significant shareholders 28.04% Represented by the Board of Directors 4.23% 48.04% 7. 3 3 % Treasury stock 1.57% Evolution of Faes Farma S.A. capitalisation over the last 5 years* (millions of euros) 1,100 2024 999 2023 1,034 2021 2022 1,091 2025 1,632 *Information at 31 December. Free float 66.16%
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89 88 INTEGRATED REPORT 2025 About this report This Integrated Report 2025 covers the period from 1 January 2025 to 31 December 2025. It is based on the Group’s scope of consolidation, as are the 2025 Statement of Non-Financial Information and Sustainability Report and the 2025 consolidated Annual Accounts. Please see below: 2025 Statement of Non-Financial Information and Sustainability Report 2025 Consolidated Annual Accounts 2025 FY results This document is a translation of an original text in Spanish. In case of any discrepancy between both texts, the Spanish version shall prevail.