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FY 2014 RESULTS
Feb 5, 2015
2
Forward Looking Statements
This presentation contains forward-looking statements as defined in the Private Securities Li...
3
Agenda
3
Key Highlights
● Serge Weinberg, Chairman of the Board of Directors – CEO
Financial Performance
● Jérôme Contam...
KEY HIGHLIGHTS
4
Serge Weinberg
Chairman of the Board of Directors – CEO
3
2
1
● Business EPS up +7.3% at CER in line with expectations
● Free Cash Flow up +12.3%
● Nearly €5.5bn of capital retur...
+€0.37
-€0.22
Incremental
EPS at CER
FY 2013 FX Impact FY 2014
Net Sales Business EPS
Very Solid Top and Bottom Line Growt...
Strong Performance across Growth Platforms(1)
7
(1) FY 2014 Growth Platforms sales were €25,802m (76.4% of total sales) an...
Q3 2014 Q4 2014
10.3%10.0%
Q2 2014
10.7%
Q1 2014
+7.9%
Q4 2013
+10.0%
Q3 2013
+5.5%
Q2 2013
+6.2%
Q1 2013
+8.6%
Q4 2012
+1...
Oral Therapy for Gaucher
Disease Type 1
U.S. (Aug 2014)
EU (Jan 2015)
Protection against four
strains of influenza virus
U...
10
Praluent™ (alirocumab) is developed in collaboration with Regeneron
(1) Rolling submission process in some endemic coun...
● World-class RNAi technology
● Focus on genetically defined
diseases with a clear translational
model for RNA interferenc...
Evolution of Dividend
2013 2014
€2.85€2.80
2012
€2.77
2011
€2.65
2010
€2.50
2009
€2.40
2008
€2.20
12
● Proposed dividend o...
Outlook for 2015 - Investing in Future Growth Drivers
(1) FY 2014 Business EPS of €5.20
(2) Difference between variation o...
FINANCIAL PERFORMANCE
Jérôme Contamine
Executive Vice President, Chief Financial Officer
14
Net Sales(1)
Business EPS
15
FX Impact on Top and Bottom Line Turned Positive in Q4
as the U.S. Dollar Strengthened
(1) Ma...
CER: Constant Exchange Rates
(1) With retroactive application of IFRIC 21
(2) Included a capital gain of €79 million befor...
CER: Constant Exchange Rates
17
€m Q4 2014 Q4 2013
% Change
(reported €)
% Change
(CER)
Business operating income 2,443 2,...
Slight Gross Margin Improvement in 2014
● Cost of Sales (CoS) of €11,029m
in 2014, slightly up (+2.4% at CER)
● Gross marg...
Moderate Increase in R&D Spend in 2014
In Line with Guidance
19
● 2014 R&D expenses of €4,824m
(14.3% of sales), up 1.9% a...
SG&A Increase Driven by Launch Costs in 2014
20
● 2014 SG&A expenses of €8,991m
(26.6% of sales), up +6.6% at CER
● SG&A i...
21
FY 2014 Business EPS Growth of +7.3%
In Line with Financial Guidance
€m FY 2014 FY 2013
% Change
(reported €)
% Change
...
Buyback IssuanceBuyback
Evolution of Share Buyback
22
SBB: Share Buyback
(1) Number of shares outstanding in million on De...
Net Debt (in €m)
Other Net Debt
Dec 31, 2014
-€1,205m
Dividend
-€3,676m
Acquisitions,
Licensing, Net
of Disposals
-€2,374m...
BUSINESS REVIEW
Peter Guenter
Executive Vice President, Global Commercial Operations
Pascale Witz
Executive Vice President...
Geographical Sales Mix in 2014
(1) World excluding U.S., Canada, Western Europe (France, Germany, UK, Italy, Spain, Greece...
Solid Diabetes Performance Across Regions in 2014
while Oncology Sales Show Relative Stability
26
Diabetes Oncology
● FY 2...
CHC and Generics Showed Strong Performance in EM
27
Consumer Healthcare Generics
● FY 2014 sales of €3,337m,
+16.5% at CER...
Our Diabetes Team Is Focused on Ensuring Successful
Execution of Two Launches
A rapid-acting inhaled insulin
An innovative...
Completion of two Phase III
trials expected in Q3 2015
LixiLan-O(3)
LixiLan-L(3)
ACS: Acute Coronary Syndrome
(1) ELIXA ev...
30
Praluent™ Has the Potential to Transform Management
of Hypercholesterolemic Patients with High CV Risk
● Regulatory app...
31
2014
€3,974m
2013
€3,716m
Other
Adult Boosters
Travel/Endemic
Polio/Pertussis/Hib
Influenza Vaccines
Meningitis/Pneumo
...
New Record Flu Vaccines Campaign in the U.S.
2013
€533m
2014
€694m
+25.7%
at CER
41% 88%
32
Successful Flu Vaccines Differ...
On Track to Make Dengue
the Next Vaccine-Preventable Disease
● Rolling submission for Dengue vaccine
initiated in several ...
34
Genzyme Rare Disease Products Delivered
Double-Digit Growth Again in 2014
● FY 2014 Rare Disease sales
of €2,137m, up +...
Source of Patients
Expanding Genzyme’s Gaucher Franchise with Cerdelga®
● Oral therapy eliminating infusion
challenges
● L...
Robust Growth and Steady Market Share Gains
Achieved by Genzyme’s Aubagio® in 2014
Quarterly Sales (€m)
€146m
● FY 2014 sa...
37
Lemtrada® Acceleration Expected with FDA Approval
(1) Genzyme holds the worldwide rights to alemtuzumab and has respons...
Merial Returned to Growth in 2014
38
● FY 2014 sales of €2,076m up +6.7%
at CER(1)
● High single digit growth in Companion...
R&D UPDATE
39
Elias Zerhouni
President, Global R&D
Significant Phase III Advances Achieved in the Last Year
Significant progress in
Phase III program in RA
U.S. submission i...
41
(1) At CER, 5 years for each product from and including the first full year of launch
(2) Non-risk adjusted sales proje...
11
22
33
44
55
42
Vatelizumab(2)
Multiple Sclerosis
IL4/IL13 bi-specific mAb
Idiopathic Pulmonary Fibrosis
Anti-GDF8 mAb
S...
2015
Expected Regulatory Decisions Q1 Q2 Q3 Q4
● Toujeo® in Diabetes in U.S. & EU  
● Praluent™ (alirocumab) in Hypercho...
CONCLUSION
44
Serge Weinberg
Chairman of the Board of Directors – CEO
Our Focus Continues to Be on Excellence in Execution
of Sanofi’s Strategy
45
Adapt structure for future
challenges and opp...
APPENDICES
R&D Pipeline
46
47
Late Stage Pipeline – Pharma & Vaccines
LixiLan
lixisenatide + insulin glargine
Fixed-Ratio / Type 2 diabetes
patisiran...
Early Stage Pipeline – Pharma & Vaccines
dupilumab
Anti-IL4Rα mAb
Asthma; Nasal polyposis;
Eosinophilic oesophagitis
SAR39...
Early Stage Pipeline – Pharma & Vaccines
SAR405838 (MI-773)
HDM2 / p53 antagonist
Solid tumors
GZ402668
GLD52 (anti-CD52 m...
50
Phase I Phase II Phase III Registration TOTAL
Oncology 5 3 0 0 8
Diabetes Solutions 1 0 2 1 4
Cardiovascular / Renal
Di...
51
Expected R&D Milestones
51
Product Event Timing
Dengue vaccine Expected regulatory submission in endemic countries H1 2...
APPENDICES
FINANCE
52
Business EPS Currency Sensitivity
€
24.5%
US $
34.4%
Japanese Yen
6.0%
£
2.1%
Australian $
1.5%
Canadian $
1.5%
Brazilian
...
54
Business Net Income Statement
* Net of tax.
** Determined on the basis of Business income before tax, associates and no...
55
Business Net Income Statement
* Net of tax
** Determined on the basis of Business income before tax, associates and non...
Reconciliation of Business Net Income to Consolidated
Net Income Attributable to Equity Holders of Sanofi
56
(1) Including...
Reconciliation of Business Net Income to Consolidated
Net Income Attributable to Equity Holders of Sanofi
57
(1) Including...
58
Consolidated Income Statements
(1) Including impact of transition to IFRIC 21
(2) In 2014, including a tax on dividends...
59
Cash Flow Statements
(1) Including impact of transition to IFRIC 21
(2) Excluding restructuring costs
€ million 2014 20...
60
Balance Sheets
(1) Including impact of transition to IFRIC 21
ASSETS
€ million
12/31/14 12/31/13(1)
LIABILITIES
€ milli...
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Annual Results 2014

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Annual Results 2014

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Annual Results 2014

  1. 1. FY 2014 RESULTS Feb 5, 2015
  2. 2. 2 Forward Looking Statements This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "plans" and similar expressions. Although Sanofi's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Sanofi, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include among other things, the uncertainties inherent in research and development, future clinical data and analysis, including post marketing, decisions by regulatory authorities, such as the FDA or the EMA, regarding whether and when to approve any drug, device or biological application that may be filed for any such product candidates as well as their decisions regarding labeling and other matters that could affect the availability or commercial potential of such product candidates, the absence of guarantee that the product candidates if approved will be commercially successful, the future approval and commercial success of therapeutic alternatives, the Group's ability to benefit from external growth opportunities, trends in exchange rates and prevailing interest rates, the impact of cost containment policies and subsequent changes thereto, the average number of shares outstanding as well as those discussed or identified in the public filings with the SEC and the AMF made by Sanofi, including those listed under "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in Sanofi's annual report on Form 20-F for the year ended December 31, 2013. Other than as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements.
  3. 3. 3 Agenda 3 Key Highlights ● Serge Weinberg, Chairman of the Board of Directors – CEO Financial Performance ● Jérôme Contamine, Executive Vice President, Chief Financial Officer Business Review ● Peter Guenter - Executive Vice President, Global Commercial Operations ● Pascale Witz - Executive Vice President, Global Divisions & Strategic Development ● Olivier Charmeil - Executive Vice President, Vaccines ● David P. Meeker - Executive Vice President & Chief Executive Officer, Genzyme ● Carsten Hellmann - Executive Vice President, Merial R&D Update ● Elias Zerhouni - President, Global R&D Q&A Session
  4. 4. KEY HIGHLIGHTS 4 Serge Weinberg Chairman of the Board of Directors – CEO
  5. 5. 3 2 1 ● Business EPS up +7.3% at CER in line with expectations ● Free Cash Flow up +12.3% ● Nearly €5.5bn of capital returned to shareholders(3) ● Mid single digit sales growth(1) ● Solid performance across Growth platforms(2) ● Important milestones achieved for late stage R&D projects ● Multiple new product launches underway or imminent In 2014, Sanofi Focused on Delivering Growth and Strengthening Innovation 5 Returning to top line growth Delivering strong financial results Bringing innovative medicines to market (1) FY 2014 total sales were up +4.9% at CER (2) FY 2014 Growth Platforms sales were up +10.7% at CER, representing 76.4% of total sales (3) Capital returned to shareholders reached €5,477m in 2014 (dividend on 2013 results of €3,676m paid in 2014 and share buy back of €1,801m executed in 2014)
  6. 6. +€0.37 -€0.22 Incremental EPS at CER FY 2013 FX Impact FY 2014 Net Sales Business EPS Very Solid Top and Bottom Line Growth Achieved in 2014 6 (1) On a reported basis, FY 2014 sales were up +2.5% and Business EPS was up +3.0% (2) With retroactive application of IFRIC 21 +7.3% at CER(1) +€1,611m -€792m FY 2014Incremental Sales at CER FY 2013 FX Impact +4.9% at CER(1) €32,951m €33,770m €5.05 €5.20 (2) (2)
  7. 7. Strong Performance across Growth Platforms(1) 7 (1) FY 2014 Growth Platforms sales were €25,802m (76.4% of total sales) and up +10.7% at CER. Excluding Generics in Brazil, Growth Platforms grew +9.4% in FY 2014 at CER (2) Excluding Generics in Brazil, Emerging Markets grew +6.5% in FY 2014 at CER and +7.6% in Q4 2014 at CER (3) Some products recorded in prescription pharmaceuticals in 2013 were transferred as Consumer Healthcare products and totaled €68m in Q4 2013 and €273m in FY 2013. When excluding this category change, sales of Consumer Healthcare grew +4.2% in Q4 2014 and +6.8% in FY 2014 at CER (4) Includes products launched since 2009 which do not belong to the Growth Platforms listed above: Multaq®, Jevtana®, Auvi-Q™, Mozobil® and Zaltrap® Q4 2014 Sales & Growth at CER FY 2014 Sales & Growth at CER Vaccines €1,177m €3,974m Diabetes Solutions €2,024m €7,273m Consumer Healthcare(3) -4.2%-4.2%€817m €3,337m Genzyme €746m €2,604m Emerging Markets(2) €3,126m €11,347m Animal Health €507m €2,076m Other Innovative Products(4) €209m €815m +7.2%+7.2% +12.1%+12.1% +16.5%+16.5% +24.3%+24.3% +9.3%+9.3% +6.7%+6.7% +14.7%+14.7% +16.2%+16.2% +11.0%+11.0% +14.0%+14.0% +22.2%+22.2% +7.9%+7.9% +11.5%+11.5% +5.9%+5.9%
  8. 8. Q3 2014 Q4 2014 10.3%10.0% Q2 2014 10.7% Q1 2014 +7.9% Q4 2013 +10.0% Q3 2013 +5.5% Q2 2013 +6.2% Q1 2013 +8.6% Q4 2012 +11.5% Q3 2012 +6.4% Q2 2012 +7.6% Q1 2012 +5.7% (1) Growth at CER. Q1 2012 growth restated for Genzyme Q1 2011 (€396m) (2) Growth at CER including Generics in Brazil was +2.5% in Q2 2013 and +14.5% in Q2 2014 8 Growth Platforms Collectively Provide a Sustainable Base +5% at CER +10% at CER % of Group sales 63.2% 77.2% (2) (2) Quarterly Sales Growth from Growth Platforms(1)
  9. 9. Oral Therapy for Gaucher Disease Type 1 U.S. (Aug 2014) EU (Jan 2015) Protection against four strains of influenza virus U.S. (Dec 2014) 9 Relapsing forms of multiple sclerosis U.S. (Nov 2014) Three New Products Granted Regulatory Approvals over Last 6 Months 11 22 33 Key Regulatory Approvals
  10. 10. 10 Praluent™ (alirocumab) is developed in collaboration with Regeneron (1) Rolling submission process in some endemic countries in Asia initiated in January 2015 Regulatory Filings for Four Major New Medicines or Vaccines Accomplished over the Last Year U.S. EU U.S. EU Endemic markets(1) Diabetes Hypercholesterolemia Dengue U.S. Pediatric hexavalent vaccine PR5i 6-in-1 Key Regulatory Filings R&D Praluent™ alirocumab Dengue vaccine
  11. 11. ● World-class RNAi technology ● Focus on genetically defined diseases with a clear translational model for RNA interference ● Market value of 11.8% ownership of €728m on Dec 31, 2014(3) 11 A Successful Model for Productive R&D Collaborations ● Global strategic collaboration ● Access to highly productive therapeutic human antibody platform ● Market value of 22.3% ownership of €7,724m on Dec 31, 2014(1,2) (1) REGN closing share price on Dec 31, 2014 was $410.25 (2) “Significant influence” under IFRS rules allows Sanofi to account for its investment in Regeneron using the Equity method from April 4, 2014 (3) ALNY closing share price on Dec 31, 2014 was $97.00. 11
  12. 12. Evolution of Dividend 2013 2014 €2.85€2.80 2012 €2.77 2011 €2.65 2010 €2.50 2009 €2.40 2008 €2.20 12 ● Proposed dividend of €2.85 per share for 2014 financial year(1) ● Increase of 5 cents per share ● 21st consecutive year of dividend increase ● Payout of 54.8% (1) To be submitted for approval by shareholders at the Annual General Meeting on May 4, 2015 Strong Commitment to Shareholder Return (1)
  13. 13. Outlook for 2015 - Investing in Future Growth Drivers (1) FY 2014 Business EPS of €5.20 (2) Difference between variation on reported basis and variation at constant exchange rates • Taking into account the outlook for U.S. Diabetes as well as new product launches and late stage pipeline development, 2015 business EPS is expected to be stable to slightly growing vs. 2014 at constant average exchange rates(1) , barring major unforeseen adverse events • Applying December 31, 2014 exchange rates to this FY 2015 guidance, the additional positive FX impact on 2015 business EPS is estimated to be between 4% and 5%(2) FY 2015 Guidance 1313
  14. 14. FINANCIAL PERFORMANCE Jérôme Contamine Executive Vice President, Chief Financial Officer 14
  15. 15. Net Sales(1) Business EPS 15 FX Impact on Top and Bottom Line Turned Positive in Q4 as the U.S. Dollar Strengthened (1) Main currency impact on sales in Q4 2014: U.S. Dollar (+€267.1m); UK Pound (+€11.6m); Russian Ruble (-€59.0m); Japanese Yen (-€23.3m) Quarterly Currency Impact -6.2% -€497m -9.1% -€0.11-5.5% -€443m -8.9% -€0.10 -1.0% -€81m -€0.03 -2.2% Q4 Q3Q2Q1 +2.7% +€229m +1.5% +€0.02 Q4 Q3Q2Q1 -€0.22 or -4.3% in 2014 -€792m or -2.4% in 2014
  16. 16. CER: Constant Exchange Rates (1) With retroactive application of IFRIC 21 (2) Included a capital gain of €79 million before tax following the sale to a third party of some minor products mainly in France and Italy (3) Included a payment of €92m before tax following the amendment of the Actonel® agreement with Warner Chilcott and an income of €93m before tax resulting from the Rituxan® arbitration between Hoechst and Genentech 16 BOI Reflects Launch Costs and Lower Other Current Operating Income in Q4 2014 €m Q4 2014 Q4 2013 % Change (reported €) % Change (CER) Net sales 9,072 8,457 +7.3% +4.6% Other revenues 98 88 +11.4% +5.7% Cost of sales (3,041) (2,898) +4.9% +2.8% Gross profit 6,129 5,647 +8.5% +5.5% R&D (1,351) (1,246) +8.4% +5.8% SG&A (2,465) (2,145) +14.9% +11.8% Other current operating income & expenses 96 252 - - Share of Profit/Loss of associates 65 26 - - Minority interests (31) (40) - - Business operating income 2,443 2,494 -2.0% -3.3% Business operating margin 26.9% 29.5% - - (1) (3)(2)
  17. 17. CER: Constant Exchange Rates 17 €m Q4 2014 Q4 2013 % Change (reported €) % Change (CER) Business operating income 2,443 2,494 -2.0% -3.3% Net financial expenses (138) (103) - - Income tax expense (477) (577) - - Effective tax rate 21.0% 24.0% - - Business net income 1,828 1,814 0.8% -0.3% Net margin 20.1% 21.4% - - Business EPS €1.39 €1.37 1.5% 0.0% Average number of shares outstanding (m) 1,315.8 1,321.1 - - Stable Business EPS in Q4 2014 17 (1) With retroactive application of IFRIC 21 (2) Included a capital gain of €29m linked to the partial sale of a financial investment (1) (2)
  18. 18. Slight Gross Margin Improvement in 2014 ● Cost of Sales (CoS) of €11,029m in 2014, slightly up (+2.4% at CER) ● Gross margin improved by 0.7 percentage point at CER in 2014 ● Reflecting higher margin from Genzyme, recovery of Generics in Brazil and improved industrial performance ● Partially offset by slight negative mix impact from Vaccines and Animal Health 18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 66.8% 67.6% (1) With retroactive application of IFRIC 21 (1) Gross Margin (%) 68.3%67.7% (1)
  19. 19. Moderate Increase in R&D Spend in 2014 In Line with Guidance 19 ● 2014 R&D expenses of €4,824m (14.3% of sales), up 1.9% at CER ● Higher spend in mAbs development programs and Phase IV studies in Rare Diseases and MS ● Partially offset by internal costs savings 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 €1,351m €1,246m (1) mAbs: Monoclonal antibodies (1) With retroactive application of IFRIC 21 2013 2014 R&D Expenses (€m) €4,824m / 14.3%€4,770m / 14.5% (1)
  20. 20. SG&A Increase Driven by Launch Costs in 2014 20 ● 2014 SG&A expenses of €8,991m (26.6% of sales), up +6.6% at CER ● SG&A increase mainly driven by: ● Genzyme launch investments in MS and Rare Diseases ● Sales & Marketing investment in Nasacort® OTC and NexGard™ ● Higher launch preparedness costs ● Salesforce expansion in China 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 €2,465m €2,145m (1) (1) With retroactive application of IFRIC 21 2013 2014 SG&A Expenses (€m) €8,991m / 26.6%€8,603m / 26.1% (1)
  21. 21. 21 FY 2014 Business EPS Growth of +7.3% In Line with Financial Guidance €m FY 2014 FY 2013 % Change (reported €) % Change (CER) Net sales 33,770 32,951 2.5% 4.9% Other revenues 339 355 -4.5% -5.1% Gross profit 23,080 22,323 3.4% 5.9% R&D (4,824) (4,770) +1.1% +1.9% SG&A (8,991) (8,603) +4.5% +6.6% Business operating income 9,449 9,323 1.4% 5.4% Effective tax rate 24.0% 24.0% - - Business net income 6,847 6,686 2.4% 6.7% Business EPS €5.20(2) €5.05 3.0% 7.3% CER: Constant Exchange Rates (1) With retroactive application of IFRIC 21 (2) FY 2014 Business EPS at CER was €5.42. The negative FX impact on Business EPS was €0.22 in 2014 (1)
  22. 22. Buyback IssuanceBuyback Evolution of Share Buyback 22 SBB: Share Buyback (1) Number of shares outstanding in million on Dec 31st 2012, Dec 31st 2013 and Dec 31st 2014 €645m €680m €823m €1,801m €1,641m €1,004m 2012 €178m Net SBB €637m Net SBB €1,121m Net SBB Share count (m) 1,323.2 1,320.7 1,309.9 Issuance Significant Increase in Share Buyback Program in 2014 2013 Issuance 2014 Buyback Net share buyback activity was up by €484m in 2014 (1)
  23. 23. Net Debt (in €m) Other Net Debt Dec 31, 2014 -€1,205m Dividend -€3,676m Acquisitions, Licensing, Net of Disposals -€2,374m Share Repurchase -€1,801m Proceeds from Issuance of Shares €680m CapEx -€1,223m Net Cash from Operating Activities Net Debt Dec 31, 2013 Free Cash Flow (FCF) Increased by 12.3% in 2014 23 (1) (2) €6,043m €7,171m €8,471m (4) (1) FCF €7,248m (3) FCF: Free Cash Flow (1) Including derivatives related to the financial debt +€290m at December 31st 2013 and +€302m at December 31st 2014 (2) Excluding Restructuring costs (3) Including €1,629m in Regeneron and €535m in Alnylam (4) Other including Restructuring costs
  24. 24. BUSINESS REVIEW Peter Guenter Executive Vice President, Global Commercial Operations Pascale Witz Executive Vice President, Global Divisions & Strategic Development Olivier Charmeil Executive Vice President, Vaccines David P. Meeker Executive Vice President & Chief Executive Officer, Genzyme Carsten Hellmann Executive Vice President, Merial 24
  25. 25. Geographical Sales Mix in 2014 (1) World excluding U.S., Canada, Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg, Portugal, the Netherlands, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia, and New Zealand (2) Row: Japan, Canada, Australia, and New Zealand (3) Excluding Generics in Brazil, LatAm grew +10.8% in FY 2014 at CER Well-Balanced Geographical Sales Split in 2014 with Solid Growth in Emerging Markets and the U.S. 33.6% 33.6% 23.3% 9.5% 25 (1) €2,095m €2,541m €3,205m €3,363m Africa & Middle East Eastern Europe, Russia & Turkey Asia Latin America +5.0% +6.3% +21.1%Growth at CER +2.5% Emerging Markets Total Sales by Region Emerging Markets €11,347m +9.3% at CER U.S. €11,339m +8.2% at CER Western EU €7,865m +0.0% at CER RoW €3,219m -7.2% at CER (2) (3)
  26. 26. Solid Diabetes Performance Across Regions in 2014 while Oncology Sales Show Relative Stability 26 Diabetes Oncology ● FY 2014 sales of €7,273m, +12.1% at CER ● Solid performance across main geographies ● U.S. sales up +12.6% at CER(1) ● EM sales up +17.4% at CER ● Western EU sales up +8.3% at CER ● Stabilization of Lantus® market share in the U.S.(2) ● FY 2014 sales of €1,401m, -2.5% at CER ● Mid-single digit sales erosion in the U.S. and EM compensated by double-digit growth in Western EU ● Jevtana® up +19.5% at CER ● Thymoglobulin® and Mozobil® respectively up +11.1% and +9.9% at CER EM: Emerging Markets (1) SoloSTAR® represented 61.7% of U.S. Lantus® sales in Q4 2014 (2) IMS NPA (rolling 4 weeks) - Basal market retail segment
  27. 27. CHC and Generics Showed Strong Performance in EM 27 Consumer Healthcare Generics ● FY 2014 sales of €3,337m, +16.5% at CER(1) ● Strong EM sales representing 52.6% of CHC sales ● Allegra® and Nasacort® now respectively 1st and 5th largest CHC brands of Sanofi ● FY 2014 sales of €1,805m, +16.2% at CER boosted by recovery in Brazil(2) EM: Emerging Markets (1) Some products recorded in prescription pharmaceuticals in 2013 were transferred as Consumer Healthcare products and totaled €68m in Q4 2013 and €273m in FY 2013. When excluding this category change, sales of Consumer Healthcare grew +4.2% in Q4 2014 and +6.8% in FY 2014 at CER (2) Excluding Brazil, Generics sales were down -2.8% at CER in FY 2014 61.3% 29.5% 9.5% Emerging Markets €1,106m Western EU €533m U.S. RoW
  28. 28. Our Diabetes Team Is Focused on Ensuring Successful Execution of Two Launches A rapid-acting inhaled insulin An innovative and patient friendly device Addressing resistance to insulin initiation and insulin intensification Launched in the U.S. in Feb 2015 New Diabetes Launches in 2015 28 Smoother PK/PD profile than Lantus® Similar HbA1c lowering with lower hypoglycemia than Lantus® Improved patient experience Regulatory decisions in the U.S. and EU expected respectively in Q1 & Q2 2015
  29. 29. Completion of two Phase III trials expected in Q3 2015 LixiLan-O(3) LixiLan-L(3) ACS: Acute Coronary Syndrome (1) ELIXA evaluates cardiovascular outcomes in patients with Type 2 Diabetes after Acute Coronary Syndrome during treatment with lixisenatide (2) LixiLan is a once-daily fixed-ratio combination of insulin glargine and lixisenatide (3) LixiLan-O evalutates the combination of insulin glargine and lixisenatide in patients insufficiently controlled on OADs while LixiLan-L focuses on patients not at goal on basal insulin Additional Milestones Expected in 2015 to Further Expand our Diabetes Franchise Key Milestones for Lixisenatide in 2015 11 22 33 U.S. regulatory submission expected in Q3 2015 Completion of CV outcome trial evaluating lixisenatide in type 2 diabetic patients after an ACS event expected in Q2 2015 29 study ® (2)(1)
  30. 30. 30 Praluent™ Has the Potential to Transform Management of Hypercholesterolemic Patients with High CV Risk ● Regulatory applications accepted in the U.S. and EU ● 6-month FDA priority review granted(1) ● Positive results from ODYSSEY CHOICE I & II ● Evaluation of monthly dosing ● ODYSSEY OUTCOMES trial ongoing(2) ● Assess potential to demonstrate CV benefit (1) FDA PDUFA date of July 24, 2015 (2) ODYSSEY OUTCOMES (n=18,000): Rationale and design in Schwartz GG et al. Am Heart J 2014;0:1-8.e1. 1 2 3 Praluent™ alirocumab
  31. 31. 31 2014 €3,974m 2013 €3,716m Other Adult Boosters Travel/Endemic Polio/Pertussis/Hib Influenza Vaccines Meningitis/Pneumo Sanofi Pasteur Delivered Robust Growth in 2014 Despite Capacity Constraints in a Context of Strong Demand ● Strong Flu sales of €1,178m, +25.2% at CER driven by the U.S. and Mexico ● U.S. market leadership with 64m doses sold in 2014 ● FDA approval of updated prescribing information for Fluzone® High-Dose ● PPH sales of €1,154m, +1.9% at CER driven by the continued recovery of Pentacel® in the U.S. ● Sanofi Pasteur continues to address remaining supply constraints in 2015 PPH: Polio, Pertussis, Hib vaccines (1) Includes VaxServe, a U.S. healthcare supplier serving primary care physician offices, community immunization providers, immunizing pharmacies, travel clinics and corporations (1) FY 2014 Sales (in €m) +7.2% at CER
  32. 32. New Record Flu Vaccines Campaign in the U.S. 2013 €533m 2014 €694m +25.7% at CER 41% 88% 32 Successful Flu Vaccines Differentiation Strategy in the U.S. Flu Vaccines Sales (in €m)
  33. 33. On Track to Make Dengue the Next Vaccine-Preventable Disease ● Rolling submission for Dengue vaccine initiated in several endemic countries in Asia ● First completed submission expected in H1 2015 ● First commercial batches produced and inventory build-up underway ● 22m lyophilized doses produced by end of 2014 ● Up to 80m lyophilized doses expected to be available by end of 2015 ● First license anticipated before year-end 2015 (1) WHO, 2012, Global Strategy for Dengue Prevention and Control A Breakthrough Innovation to Help Reduce the Burden of Dengue(1) 3333
  34. 34. 34 Genzyme Rare Disease Products Delivered Double-Digit Growth Again in 2014 ● FY 2014 Rare Disease sales of €2,137m, up +11.2% at CER ● Sustained leadership positions(1) for Cerezyme®, Fabrazyme® and Myozyme® ● Committed to developing new therapies ● Revusiran entered Phase III for familial amyloidotic cardiomyopathy (FAC)(2) ● GZ402671, an oral GCS inhibitor, advances to Phase II for Fabry disease (1) Cerezyme® value share is 72% and Fabrazyme® value share is 54% based on 9M 2014 reported sales by Sanofi and Shire (2) Revusiran (ALN-TTRsc), a subcutaneously administered RNAi therapeutic, is developed in collaboration with Alnylam & 20142013 20142013 20142013 €460m €542m €715m +23.0% at CER +9.8% at CER +8.3% at CER Top 3 Rare Disease Products Sales
  35. 35. Source of Patients Expanding Genzyme’s Gaucher Franchise with Cerdelga® ● Oral therapy eliminating infusion challenges ● Launched in the U.S. in Sep 2014 ● Reimbursement progressing well with coverage by 88% of plans ● EU approval granted in Jan 2015 ● First launches anticipated to be in Germany and Nordic countries 35 Other therapies New treatment starts Clinical trials Cerezyme®37% 40% 19% 4% (1) (1) Proportion of patients on Cerdelga® since launch
  36. 36. Robust Growth and Steady Market Share Gains Achieved by Genzyme’s Aubagio® in 2014 Quarterly Sales (€m) €146m ● FY 2014 sales of €433m vs. €166m last year ● Results from 2 Phase III studies added to U.S. label ● Only oral treatment to significantly reduce the risk of sustained accumulation of disability in 2 Phase III studies in RMS (TEMSO and TOWER) ● Positive data in early MS(1) (TOPIC) ● Majority of switches coming from Tecfidera® in Q4 2014(2) (1) Patients with a first clinical event consistent with MS (2) IMS U.S. 36
  37. 37. 37 Lemtrada® Acceleration Expected with FDA Approval (1) Genzyme holds the worldwide rights to alemtuzumab and has responsibility for its development and commercialízation in MS. Bayer Healthcare receives contingent payments based on global sales revenue. ● FY 2014 sales of €34 million ● FDA approval received in Nov 2014 ● Infrastructure to support REMS program fully operational ● First patients infused within 2 weeks of approval ● New dedicated field teams in place in U.S.(1) ● Ensuring appropriate education and confidence to prescribe ● Full team in field starting in February 1 2 3
  38. 38. Merial Returned to Growth in 2014 38 ● FY 2014 sales of €2,076m up +6.7% at CER(1) ● High single digit growth in Companion Animal (61.7% of sales) ● Production animal sales growth in-line with market growth ● Successful launch of NexGard™ ● New soft, beef-flavored chew treating fleas and ticks for dogs with first year sales of €113m ● Frontline® family sales stabilized in 2014 supported by investment in ad campaign Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 -3.1% -5.7% -6.3% Merial Sales Growth at CER -6.4% -1.6% +12.7% +6.2% +11.5% (1) FY 2014 Companion Animal sales were €1,281m (61.7% of Merial sales) and up +8.8% at CER while FY 2014 Production Animal sales were €795m (38.3% of Merial sales) and up +3.5% at CER
  39. 39. R&D UPDATE 39 Elias Zerhouni President, Global R&D
  40. 40. Significant Phase III Advances Achieved in the Last Year Significant progress in Phase III program in RA U.S. submission in Q4 2015 Two Phase III studies (LixiLan-O & LixiLan-L) fully recruited Start of Phase III trial in Familial Amyloid Cardiomyopathy Start of two Phase III studies in Type 1 and Type 2 Diabetes Phase III trial in Familial Amyloid Polyneuropathy on track sarilumab LixiLan patisiran insulin lispro revusiran Start of Phase III program in Atopic Dermatitis and breakthrough designation dupilumab 40 RA: Rheumatoid Arthritis Sarilumab and dupilumab are developed in collaboration with Regeneron Patisiran and revusiran are developed in collaboration with Alnylam
  41. 41. 41 (1) At CER, 5 years for each product from and including the first full year of launch (2) Non-risk adjusted sales projections Returns from R&D Are Expected to Substantially Improve Potential cumulative first 5 years sales ~€7.5bn(1,2) 2007 - 2013 2014 - 2020 Potential cumulative first 5 years sales >€30bn(1,2)  10 launches achieved  Up to 18 launches expected Praluent™ alirocumab Dengue Vaccine
  42. 42. 11 22 33 44 55 42 Vatelizumab(2) Multiple Sclerosis IL4/IL13 bi-specific mAb Idiopathic Pulmonary Fibrosis Anti-GDF8 mAb Sarcopenia Oral GCS Inhibitor Fabry Disease rhASM Niemann-Pick type B 66 77 88 99 Neo GAA Pompe Disease C-MET kinase inhibitor Solid Tumors Anti-CXCR5 mAb Systemic Lupus Erythematosus GLP-1/GIP co-agonist Diabetes Anti-GDF8 mAb is developed in collaboration with Regeneron (1) Phase II or Phase I R&D projects (2) Anti-VLA2 mAb Sanofi Has Additional Potentially Transformative Drugs R&D Assets to Watch(1)
  43. 43. 2015 Expected Regulatory Decisions Q1 Q2 Q3 Q4 ● Toujeo® in Diabetes in U.S. & EU   ● Praluent™ (alirocumab) in Hypercholesterolemia (U.S.)  ● PR5i 6-in-1 pediatric vaccine (U.S.)  ● Dengue vaccine in Endemic Countries  Expected Regulatory Submissions Q1 Q2 Q3 Q4 ● Lyxumia® in Diabetes (U.S.)  ● LixiLan in Diabetes (U.S. & E.U.)  ● Sarilumab in Rheumatoid Arthritis (U.S.)  Expected Headline Phase III Data Releases Q1 Q2 Q3 Q4 ● Lyxumia® ELIXA CV outcome study in Diabetes  ● LixiLan in Diabetes  ● Sarilumab in Rheumatoid Arthritis Expected Phase III Starts Q1 Q2 Q3 Q4 ● Dupilumab in Asthma and Nasal Polyposis   Innovation Momentum Set to Continue in 2015 43
  44. 44. CONCLUSION 44 Serge Weinberg Chairman of the Board of Directors – CEO
  45. 45. Our Focus Continues to Be on Excellence in Execution of Sanofi’s Strategy 45 Adapt structure for future challenges and opportunities3 Bring innovative products to market2 Grow a global healthcare leader with synergistic platforms1 Seize value-enhancing growth opportunities4 2015 Focus Maintain financial discipline Focus company resources on must-win priorities Ensure successful launches Strategy Sustain leadership positions
  46. 46. APPENDICES R&D Pipeline 46
  47. 47. 47 Late Stage Pipeline – Pharma & Vaccines LixiLan lixisenatide + insulin glargine Fixed-Ratio / Type 2 diabetes patisiran (ALN-TTR02) siRNA inhibitor targeting TTR Familial amyloid polyneuropathy Clostridium difficile Toxoid vaccine Toujeo® (U300) insulin glargine Type 1+2 diabetes, U.S., EU Lyxumia® (lixisenatide) GLP-1 agonist Type 2 diabetes, U.S. revusiran (ALN-TTRsc) siRNA inhibitor targeting TTR Familial amyloid cardiomyopathy Rotavirus Live attenuated tetravalent Rotavirus oral vaccine Praluent™ (alirocumab) Anti-PCSK-9 mAb Hypercholesterolemia, U.S., EU SAR342434 insulin lispro Type 1+2 diabetes Kynamro® (mipomersen) Apolipoprotein B-100 antisense Severe HeFH, U.S. VaxiGrip® QIV IM Quadrivalent inactivated influenza vaccine Dengue Mild-to-severe dengue fever vaccine sarilumab Anti-IL-6R mAb Rheumatoid arthritis Jevtana® (cabazitaxel) Metastatic prostate cancer (1L) PR5i DTP-HepB-Polio-Hib Pediatric hexavalent vaccine, U.S., EU dupilumab Anti-IL4Rα mAb Atopic dermatitis SYNVISC-ONE® Medical device Pain in hip OA Quadracel® Diphtheria, tetanus, pertussis & polio vaccine; 4-6 y of age 47 N N N N New Molecular Entity Immune Mediated Diseases Rare Diseases Oncology Diabetes Solutions Vaccines Infectious Diseases Cardiovascular / Renal Diseases Age Related Degenerative Diseases Ophthalmology Biosurgery N Phase III Registration N N N N
  48. 48. Early Stage Pipeline – Pharma & Vaccines dupilumab Anti-IL4Rα mAb Asthma; Nasal polyposis; Eosinophilic oesophagitis SAR391786 Anti-GDF8 mAb Sarcopenia GZ402671 Oral GCS Inhibitor Fabry Disease vatelizumab Anti-VLA 2 mAb Multiple sclerosis SAR650984 Anti-CD38 naked mAb Multiple myeloma Rabies VRVg Purified vero rabies vaccine SAR156597 IL4/IL13 Bi-specific mAb Idiopathic pulmonary fibrosis SAR3419 Maytansin-loaded anti-CD19 mAb B-cell refractory/relapsed malignancies Meningitis ACYW conj. 2nd generation meningococcal conjugate infant vaccine sarilumab Anti-IL-6R mAb Uveitis Combination SAR245409 (XL765) / MSC1936369B Oral dual inhibitor of PI3K & mTOR / pimasertib Ovarian cancer Tuberculosis Recombinant subunit vaccine fresolimumab TGFβ antagonist Focal segmental glomerulosclerosis Combination ferroquine / OZ439 Antimalarial Malaria Phase II N N N N N 48 N 48 N New Molecular Entity Immune Mediated Diseases Rare Diseases Oncology Diabetes Solutions Vaccines Infectious Diseases Cardiovascular / Renal Diseases Age Related Degenerative Diseases Ophthalmology Biosurgery N N N
  49. 49. Early Stage Pipeline – Pharma & Vaccines SAR405838 (MI-773) HDM2 / p53 antagonist Solid tumors GZ402668 GLD52 (anti-CD52 mAb) Relapsing multiple sclerosis GZ402663 (sFLT-01) Gene therapy Age-related macular degeneration (AMD) Streptococcus pneumonia Meningitis & pneumonia vaccine SAR566658 Maytansin-loaded anti-CA6 mAb Solid tumors SAR113244 Anti-CXCR5 mAb Systemic lupus erythematosus StarGen® Gene therapy Stargardt disease Herpes Simplex Virus Type 2 HSV-2 vaccine SAR125844 C-MET kinase inhibitor Solid tumors SAR252067 Anti-LIGHT mAb Crohn’s disease UshStat® Gene therapy Usher syndrome 1B SAR245408 (XL147) Oral PI3K inhibitor Solid tumors SAR228810 Anti-protofibrillar AB mAb Alzheimer’s disease GZ402665 (rhASM) Niemann-Pick type B Combination SAR405838 / MSC1936369B Solid tumors SAR425899 GLP-1 / GCGR agonist Diabetes GZ402666 neo GAA Pompe Disease SAR408701 Anti-CEACAM5 ADC Solid tumors Phase I N N N N N N N N N 49 N N N New Molecular Entity Immune Mediated Diseases Rare Diseases Oncology Diabetes Solutions Vaccines Infectious Diseases Cardiovascular / Renal Diseases Age Related Degenerative Diseases Ophthalmology Biosurgery N N N N
  50. 50. 50 Phase I Phase II Phase III Registration TOTAL Oncology 5 3 0 0 8 Diabetes Solutions 1 0 2 1 4 Cardiovascular / Renal Diseases 0 1 0 1 2 Immune Mediated Diseases 3 2 2 0 7 Infectious Diseases 0 1 0 0 1 Ophthalmology 3 0 0 0 3 Rare Diseases 2 1 2 0 5 Age Related Degenerative Diseases 1 1 0 0 2 Vaccines 2 3 3 3 11 TOTAL 17 12 9 5 R&D Pipeline Summary Table(1) 29 14 NMEs & Vaccines 43 50 32 (1) Excluding life cycle management programs
  51. 51. 51 Expected R&D Milestones 51 Product Event Timing Dengue vaccine Expected regulatory submission in endemic countries H1 2015 Quadracel® Expected U.S. regulatory decision Q1 2015 Toujeo® (U300) Expected U.S. regulatory decision in Diabetes Q1 2015 Toujeo® (U300) Expected EU regulatory decision in Diabetes Q2 2015 Lyxumia® (lixisenatide) Expected ELIXA CV outcome trial top-line results Q2 2015 Dupilumab Expected start of Phase III trial in Asthma Q2 2015 Praluent™ (alirocumab) Expected U.S. regulatory decision in Hypercholesterolemia Q3 2015 PR5i vaccine (DTP-HepB-Polio-Hib) Expected U.S. regulatory decision Q3 2015 LixiLan Expected Phase III top line results in Diabetes Q3 2015 Lyxumia® (lixisenatide) Expected U.S. regulatory submission in Diabetes Q3 2015 Dupilumab Expected start of Phase III trial in Nasal Polyposis Q3 2015 Sarilumab Expected Phase III top line results in Rheumatoid Arthritis H2 2015 Vaxigrip® QIV IM (3+ years) Expected EU regulatory submission Q4 2015 Dengue vaccine Expected regulatory decision in endemic countries Q4 2015 LixiLan Expected U.S. and EU regulatory submissions in Diabetes Q4 2015 Sarilumab Expected U.S. regulatory submission in Rheumatoid Arthritis Q4 2015
  52. 52. APPENDICES FINANCE 52
  53. 53. Business EPS Currency Sensitivity € 24.5% US $ 34.4% Japanese Yen 6.0% £ 2.1% Australian $ 1.5% Canadian $ 1.5% Brazilian Real 3.7% Chinese Yuan 4.5% Russian Ruble 2.3% Others 17.6% Mexican Peso 1.9% Currency Exposure on 2014 Sales Currency Average Rates 2015 Currency Sensitivity 53 2013 2014 % change €/$ 1.33 1.33 +0.1% €/Yen 129.66 140.38 +8.3% €/Real 2.87 3.12 +8.9% €/Ruble 42.32 51.01 +20.5% Currency Variation € / Currency Business EPS Sensitivity USD -0.05 +0.10 JPY +5 -0.03 RUB +10 -0.06
  54. 54. 54 Business Net Income Statement * Net of tax. ** Determined on the basis of Business income before tax, associates and non-controlling interests *** Based on an average number of shares outstanding of 1,315.8 million in the fourth quarter of 2014 and 1,321.1 million in the fourth quarter of 2013 (1) Including impact of transition to IFRIC 21 Fourth quarter 2014 Group Total Pharmaceuticals Vaccines Animal Health Others € million Q4 2014 Q4 2013(1) Change Q4 2014 Q4 2013(1) Change Q4 2014 Q4 2013(1) Change Q4 2014 Q4 2013(1) Change Q4 2014 Q4 2013(1) Net sales 9,072 8,457 7.3% 7,388 7,054 4.7% 1,177 959 22.7% 507 444 14.2% - - Other revenues 98 88 11.4% 77 71 8.5% 10 9 11.1% 11 8 37.5% - - Cost of sales (3,041) (2,898) 4.9% (2,200) (2,211) (0.5%) (619) (501) 23.6% (222) (186) 19.4% - - As % of net sales (33.5%) (34.3%) (29.8%) (31.3%) (52.5%) (52.2%) (43.8%) (41.9%) Gross profit 6,129 5,647 8.5% 5,265 4,914 7.1% 568 467 21.6% 296 266 11.3% - - As % of net sales 67.6% 66.8% 71.3% 69.7% 48.3% 48.7% 58.4% 59.9% Research and development expenses (1,351) (1,246) 8.4% (1,162) (1,068) 8.8% (142) (136) 4.4% (47) (42) 11.9% - - As % of net sales (14.9%) (14.7%) (15.7%) (15.1%) (12.1%) (14.2%) (9.3%) (9.5%) Selling and general expenses (2,465) (2,145) 14.9% (2,112) (1,855) 13.9% (173) (133) 30.1% (177) (157) 12.7% (3) - As % of net sales (27.2%) (25.4%) (28.6%) (26.3%) (14.7%) (13.9%) (34.9%) (35.4%) Other current operating income/expenses 96 252 118 259 (1) (3) 2 1 (23) (5) Share of profit/loss of associates* and joint ventures 65 26 51 18 13 9 1 (1) - - Net income attributable to non-controlling interests (31) (40) (30) (39) - - (1) (1) - - Business operating income 2,443 2,494 (2.0%) 2,130 2,229 (4.4%) 265 204 29.9% 74 66 12.1% (26) (5) As % of net sales 26.9% 29.5% 28.8% 31.6% 22.5% 21.3% 14.6% 14.9% Financial income and expenses (138) (103) Income tax expense (477) (577) Tax rate** 21.0% 24.0% Business net income 1,828 1,814 0.8% As % of net sales 20.1% 21.4% Business earnings per share*** (in euros) 1.39 1.37 1.5%
  55. 55. 55 Business Net Income Statement * Net of tax ** Determined on the basis of Business income before tax, associates and non-controlling interests *** Based on an average number of shares outstanding of 1,315.8 million in 2014 and 1,323.1 million in 2013 (1) Including impact of transition to IFRIC 21 Full year 2014 Group Total Pharmaceuticals Vaccines Animal Health Others € million 2014 2013(1) Change 2014 2013(1) Change 2014 2013(1) Change 2014 2013(1) Change 2014 2013(1) Net sales 33,770 32,951 2.5% 27,720 27,250 1.7% 3,974 3,716 6.9% 2,076 1,985 4.6% - - Other revenues 339 355 (4.5%) 272 295 (7.8%) 33 30 10.0% 34 30 13.3% - - Cost of sales (11,029) (10,983) 0.4% (8,282) (8,518) (2.8%) (1,948) (1,776) 9.7% (799) (689) 16.0% - - As % of net sales (32.7%) (33.4%) (29.9%) (31.3%) (49.0%) (47.8%) (38.4%) (34.7%) Gross profit 23,080 22,323 3.4% 19,710 19,027 3.6% 2,059 1,970 4.5% 1,311 1,326 (1.1%) - - As % of net sales 68.3% 67.7% 71.1% 69.8% 51.8% 53.0% 63.2% 66.8% Research and development expenses (4,824) (4,770) 1.1% (4,174) (4,087) 2.1% (493) (518) (4.8%) (157) (165) (4.8%) - - As % of net sales (14.3%) (14.5%) (15.1%) (15.0%) (12.4%) (13.9%) (7.6%) (8.3%) Selling and general expenses (8,991) (8,603) 4.5% (7,692) (7,362) 4.5% (614) (588) 4.4% (682) (653) 4.4% (3) - As % of net sales (26.6%) (26.1%) (27.7%) (27.0%) (15.5%) (15.8%) (32.9%) (32.9%) Other current operating income/expenses 164 450 194 422 2 3 20 (1) (52) 26 Share of profit/loss of associates* and joint ventures 147 85 106 48 40 41 1 (4) - - Net income attributable to non-controlling interests (127) (162) (126) (162) - 1 (1) (1) - - Business operating income 9,449 9,323 1.4% 8,018 7,886 1.7% 994 909 9.4% 492 502 (2.0%) (55) 26 As % of net sales 28.0% 28.3% 28.9% 28.9% 25.0% 24.5% 23.7% 25.3% Financial income and expenses (447) (503) Income tax expense (2,155) (2,134) Tax rate** 24.0% 24.0% Business net income 6,847 6,686 2.4% As % of net sales 20.3% 20.3% Business earnings per share*** (in euros) 5.20 5.05 3.0%
  56. 56. Reconciliation of Business Net Income to Consolidated Net Income Attributable to Equity Holders of Sanofi 56 (1) Including impact of transition to IFRIC 21 (2) Of which related to amortization expense generated by the remeasurement of intangible assets as part of business combinations: €563 million in the fourth quarter of 2014 and €657 million in the fourth quarter of 2013 (3) Annual fee related to 2013 sales following the final IRS regulation issued in July 2014 that has changed the timing of liability recognition and leads to a one-time “double” expense in the year of 2014 (4) Based on an average number of shares outstanding of 1,315.8 million in the fourth quarter of 2014 and 1,321.1 in the fourth quarter of 2013 € million Q4 2014 Q4 2013(1) Change Business net income 1,828 1,814 0.8% Amortization of intangible assets(2) (620) (682) Impairment of intangible assets 135 (919) Fair value remeasurement of contingent consideration liabilities (126) 499 Expenses arising from the impact of acquisitions on inventories - (1) Restructuring costs (113) (70) Additional yearly expense related to US Branded Prescription Drug Fee(3) - - Tax effect of items listed above: 311 442 Amortization of intangible assets 89 216 Impairment of intangible assets (57) 338 Fair value remeasurement of contingent consideration liabilities 235 (128) Expenses arising from the impact of acquisitions on inventories - - Restructuring costs 44 16 Other tax items - - Share of items listed above attributable to non-controlling interests 4 1 Restructuring costs of associates and joint ventures, and expenses arising from the impact of acquisitions on associates and joint ventures (80) (24) Net income attributable to equity holders of Sanofi 1,339 1,060 26.3% Consolidated earnings per share(4) (in euros) 1.02 0.80
  57. 57. Reconciliation of Business Net Income to Consolidated Net Income Attributable to Equity Holders of Sanofi 57 (1) Including impact of transition to IFRIC 21 (2) Of which related to amortization expense generated by the remeasurement of intangible assets as part of business combinations: €2,361 million in 2014 and €2,804 million in 2013 (3) Day one profit on Alnylam shares presented in financial result (4) Annual fee related to 2013 sales following the final IRS regulation issued in July 2014 that has changed the timing of liability recognition and leads to a one-time “double” expense in the year of 2014 (5) Tax on dividends paid to shareholders of Sanofi (6) Based on an average number of shares outstanding of 1,315.8 million in 2014 and 1,323.1 million in 2013 € million 2014 2013(1) Change Business net income 6,847 6,686 2.4% Amortization of intangible assets(2) (2,482) (2,914) Impairment of intangible assets 26 (1,387) Fair value remeasurement of contingent consideration liabilities (303) 314 Expenses arising from the impact of acquisitions on inventories - (8) Restructuring costs (411) (300) Other gains and losses, and litigation(3) 35 - Additional yearly expense related to US Branded Prescription Drug Fee(4) (116) - Tax effect of items listed above: 1,094 1,480 Amortization of intangible assets 728 939 Impairment of intangible assets (18) 527 Fair value remeasurement of contingent consideration liabilities 254 (85) Expenses arising from the impact of acquisitions on inventories - 2 Other gains and losses, and litigation (13) - Restructuring costs 143 97 Other tax items(5) (110) (109) Share of items listed above attributable to non-controlling interests 8 4 Restructuring costs of associates and joint ventures. and expenses arising from the impact of acquisitions on associates and joint ventures (198) (50) Net income attributable to equity holders of Sanofi 4,390 3,716 18.1% Consolidated earnings per share(6) (in euros) 3.34 2.81
  58. 58. 58 Consolidated Income Statements (1) Including impact of transition to IFRIC 21 (2) In 2014, including a tax on dividends paid to shareholders of Sanofi: (110) M€ compared to (109) M€ in 2013 € million Q4 2014 Q4 2013(1) 2014 2013(1) Net sales 9,072 8,457 33,770 32,951 Other revenues 98 88 339 355 Cost of sales (3,041) (2,899) (11,029) (10,991) Gross profit 6,129 5,646 23,080 22,315 Research and development expenses (1,351) (1,246) (4,824) (4,770) Selling and general expenses (2,465) (2,145) (9,107) (8,603) Other operating income 164 288 327 691 Other operating expenses (68) (36) (163) (241) Amortization of intangible assets (620) (682) (2,482) (2,914) Impairment of intangible assets 135 (919) 26 (1,387) Fair value remeasurement of contingent consideration liabilities (126) 499 (303) 314 Restructuring costs (113) (70) (411) (300) Operating income 1,685 1,335 6,143 5,105 Financial expenses (159) (154) (605) (612) Financial income 21 51 193 109 Income before tax and associates and joint ventures 1,547 1,232 5,731 4,602 Income tax expense(2) (166) (135) (1,171) (763) Share of profit/loss of associates and joint ventures (15) 2 (51) 35 Net income 1,366 1,099 4,509 3,874 Net income attributable to non-controlling interests 27 39 119 158 Net income attributable to equity holders of Sanofi 1,339 1,060 4,390 3,716 Average number of shares outstanding (million) 1,315.8 1,321.1 1,315.8 1,323.1 Earnings per share (in euros) 1.02 0.80 3.34 2.81
  59. 59. 59 Cash Flow Statements (1) Including impact of transition to IFRIC 21 (2) Excluding restructuring costs € million 2014 2013(1) Business net income 6,847 6,686 Depreciation amortization and impairment of property. plant and equipment and software 1,230 1,211 Net gains and losses on disposals of non-current assets, net of tax (205) (261) Other non-cash items (389) (106) Operating cash flow before changes in working capital(2) 7,483 7,530 Changes in working capital(2) 988 125 Acquisitions of property, plant and equipment and software (1,223) (1,198) Free cash flow(2) 7,248 6,457 Acquisitions of intangibles, excluding software (334) (200) Acquisitions of investments, including assumed debt(2) (2,292) (319) Restructuring costs paid (774) (659) Proceeds from disposals of property, plant and equipment, intangibles, and other non-current assets, net of tax 252 368 Issuance of Sanofi shares 680 1,004 Dividends paid to shareholders of Sanofi (3,676) (3,638) Acquisition of treasury shares (1,801) (1,641) Disposals of treasury shares, net of tax 1 2 Transactions with non-controlling interests including dividends (8) (52) Foreign exchange impact (525) 355 Other items 101 (1) Change in net debt (1,128) 1,676
  60. 60. 60 Balance Sheets (1) Including impact of transition to IFRIC 21 ASSETS € million 12/31/14 12/31/13(1) LIABILITIES € million 12/31/14 12/31/13(1) Property, plant and equipment 10,396 10,182 Equity attributable to equity-holders of Sanofi 56,120 56,904 Intangible assets (including goodwill) 53,740 52,529 Equity attributable to non-controlling interests 148 129 Non-current financial assets, investments in associates, and deferred tax assets 9,819 9,418 Total equity 56,268 57,033 Long-term debt 13,276 10,414 Non-current liabilities related to business combinations and to non-controlling interests 1,133 884 Non-current assets 73,955 72,129 Provisions and other non-current liabilities 9,578 8,735 Deferred tax liabilities 4,105 5,060 Inventories, accounts receivable and other current assets 16,086 15,655 Non-current liabilities 28,092 25,093 Cash and cash equivalents 7,341 8,257 Accounts payable and other current liabilities 11,363 9,728 Current liabilities related to business combinations and to non-controlling interests 131 24 Short-term debt and current portion of long-term debt 1,538 4,176 Current assets 23,427 23,912 Current liabilities 13,032 13,928 Assets held for sale or exchange 10 14 Liabilities related to assets held for sale or exchange - 1 Total ASSETS 97,392 96,055 Total LIABILITIES & EQUITY 97,392 96,055

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