J.P. Morgan China Conference 2012    Christopher A. Viehbacher, CEO               June 13, 2012
Forward Looking StatementsThis presentation contains forward-looking statements as defined in the Private Securities Litig...
2008-2011Repositioning Sanofi for Sustainable Growth            2005-2008                 2009-2011                  2012 ...
Sanofi Grew Sales in 2011 due to Genzyme Acquisitionand Growth Platforms                                                  ...
A Patent Cliff Exposure Significantly Reduced in 2011                  Key Genericized Products(1) - Quarterly Sales (€m) ...
The Most Significant Headwind from the Patent Cliffin 2012 Will Impact Earnings but Not Sales Loss of Exclusivity of Plavi...
Successful Execution of Strategy in 2011 TowardsSustainable Growth and Improved Risk Profile           Increase innovation...
1   R&D Pipeline Delivery Significantly Improved in 2011    5 new molecular entities submitted:                 Kynamro™(1...
2    Successful Acquisition of Genzyme in 2011                                    1 Conclusion of the transaction in April...
3   Excellent Performance of Growth Platforms in 2011         Growth is at CER (Constant Exchange Rates)         (1) 2011 ...
3   A Strong Leadership Position in Emerging Markets                                                                      ...
AgendaSanofi – A Leading Presence in ChinaOutlook on the Healthcare Market in ChinaFocusing on DiabetesBuilding a Consumer...
Greater China: Growing Contributor to Sanofi’sLeadership Position in Emerging Markets                 Sanofi Sales in Emer...
Sanofi achieved Annual Sales in China of ~€1bn in 2011                       Total Sanofi Sales in China(1) (in EUR)      ...
Sanofi Is Progressively Developing its Key GrowthPlatforms in China                             Breakdown of Sales in Chin...
Sanofi Has Grown Faster than its Peers in China             2007(1)                                             2009(2)   ...
Sanofi: Well Established in Greater China        with a Fully Integrated Presence                                        S...
Agenda Sanofi – A Leading Presence in China Outlook on the Healthcare Market in China Focusing on Diabetes Building a Cons...
China: Main Macro Economic Indicators Point TowardContinued and Superior Growth    Population in 2011(1)                  ...
China Healthcare Reform           Opportunities                                                       Challenges ● Better ...
The 2009 - 2011 Healthcare Reform Has Ledto a Significant Increase in Healthcare Investment           Health Care Expendit...
China Expected to Become a ~150bn USD PharmaMarket by 2016                                 nd    China will be the 2 large...
AgendaSanofi – A Leading Presence in ChinaOutlook on the Healthcare Market in ChinaFocusing on DiabetesBuilding a Consumer...
Diabetes is One of the Largest Opportunitiesin the Healthcare Space in China   Adults with diabetes in China(1)           ...
Sanofi’s Share in the Diabetes Market in ChinaAlmost Tripled over the Last 4 Years       China Diabetes Market Share by Di...
Lantus® Has Reached 17.2% Market Share of TotalInsulins in China in March 2012(1)                                         ...
Delivering the Full Value of Other Portfolio Assets in theChinese Diabetes Market                                         ...
“China Initiative for Diabetes Excellence” -A Major Public-Private Partnership in Diabetes            5                 Tr...
Continuous Commitment to Fighting Diabetes in China● Local Manufacturing of Lantus® SoloSTAR®  Pen in Beijing Facility ina...
Agenda Sanofi – A Leading Presence in China Outlook on the Healthcare Market in China Focusing on Diabetes Building a Cons...
Sanofi Has Become a Global Player in CHC        Key Actions                                                               ...
Sanofi has moved up to #4 among all MNCs in theAttractive Consumer Healthcare Market in China● China is the 2nd largest OT...
Accelerating CHC in China        Three-pronged Strategy in Consumer Healthcare in China  1 External Growth                ...
Two Leading Brands in the Largest OTC Categories                                                 nd                       ...
Sanofi has Competitive Strength in the CHC Marketin China    Brand availability                             Local Producti...
Agenda Sanofi – A Leading Presence in China Outlook on the Healthcare Market in China Focusing on Diabetes Building a Cons...
Sanofi Pasteur is a Leading Multinational Company inthe Vaccines Market in China                                          ...
Pentaxim® Has Set New Milestones in China’sVaccines Market    Pentaxim® is the first 5-in-1   combination vaccine in China...
Imovax® is Safeguarding a Healthy Future for China’sChildren               ®Imovax Polio is the only injectable Polio vacc...
AgendaSanofi – A Leading Presence in ChinaOutlook on the Healthcare Market in ChinaFocusing on DiabetesBuilding a Consumer...
Merial: Sustained Performance Driven by EmergingMarkets           Sanofi total sales         in Animal Health 2011        ...
Strong Position in the Avian Biologicals Market in China                                                                  ...
Agenda Sanofi – A Leading Presence in China Outlook on the Healthcare Market in China Focusing on Diabetes Building a Cons...
Leverage Local and Regional Innovation through Asia-Pacific based R&D Activities, with China leading the Effort           ...
Partnerships with Top Chinese Institutions andBiotechs for Innovative ResearchAcademic Partnerships                       ...
Slit Trap - An Innovation from ChinaDeveloped by Sanofi Asia-Pacific R&D● Hepatocellular carcinoma – a high unmet need in ...
CONCLUSION             47
Sanofi Is Poised to Sustain Significant Growthin China● Solid historical presence and fully-integrated structure● Strong s...
Continued Execution of Strategy Expected to DeliverSustainable Growth Over 2012-2015   Expected 2012-2015 Sales CAGR      ...
The Dividend Remains a Key Element of ShareholderValue Creation                                              Evolution of ...
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2012 - Jp Morgan China Conference

  1. 1. J.P. Morgan China Conference 2012 Christopher A. Viehbacher, CEO June 13, 2012
  2. 2. Forward Looking StatementsThis presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of1995, as amended. Forward-looking statements are statements that are not historical facts. These statementsinclude projections and estimates and their underlying assumptions, statements regarding plans, objectives,intentions and expectations with respect to future financial results, events, operations, services, productdevelopment and potential, and statements regarding future performance. Forward-looking statements aregenerally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "plans" and similarexpressions. Although Sanofis management believes that the expectations reflected in such forward-lookingstatements are reasonable, investors are cautioned that forward-looking information and statements are subjectto 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 orprojected by, the forward-looking information and statements. These risks and uncertainties include among otherthings, the uncertainties inherent in research and development, future clinical data and analysis, including postmarketing, decisions by regulatory authorities, such as the FDA or the EMA, regarding whether and when toapprove any drug, device or biological application that may be filed for any such product candidates as well astheir decisions regarding labeling and other matters that could affect the availability or commercial potential ofsuch product candidates, the absence of guarantee that the product candidates if approved will be commerciallysuccessful, the future approval and commercial success of therapeutic alternatives, the Groups ability to benefitfrom external growth opportunities, trends in exchange rates and prevailing interest rates, the impact of costcontainment policies and subsequent changes thereto, the average number of shares outstanding as well asthose discussed or identified in the public filings with the SEC and the AMF made by Sanofi, including those listedunder "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in Sanofis annualreport on Form 20-F for the year ended December 31, 2011. Other than as required by applicable law, Sanofidoes not undertake any obligation to update or revise any forward-looking information or statements. 2
  3. 3. 2008-2011Repositioning Sanofi for Sustainable Growth 2005-2008 2009-2011 2012 onwards Focusing on Generating Rx Blockbusters Transforming Sustainable Growth • Blockbuster drugs • Investing in growth platforms • Growing recurring sales • Patents challenged • Increasing diversification • Improving risk profile • R&D setbacks • Managing patent cliff 3
  4. 4. Sanofi Grew Sales in 2011 due to Genzyme Acquisitionand Growth Platforms Sales €33,389m €32,367m €29,306m €27,568m +5.3% at CER (1) (1) (2) 2008 2009 2010 2011 CER : Constant Exchange Rates (1) In 2008 and 2009, Merial Joint Venture sales were not consolidated by Sanofi (2) In 2010, excluding non-consolidated sales from Merial, Sanofi reported sales of €30,384m 4
  5. 5. A Patent Cliff Exposure Significantly Reduced in 2011 Key Genericized Products(1) - Quarterly Sales (€m) € 2 207 m Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (2) Q3 (2) Q4 (2) 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 (1) The patent cliff is the effect of the loss of exclusivity of key genericized products. Key genericized products include Lovenox® U.S., Plavix® Western EU, Taxotere® Western EU & U.S., Eloxatin® U.S., Ambien® family U.S., Allegra® U.S., Aprovel® Western EU, Xyzal® U.S., Xatral® U.S., Nasacort® U.S. and BMS Alliance (active ingredients of Plavix® and Avapro® sold to BMS) 5 (2) Eloxatin® U.S. market exclusivity expected through August 9, 2012.
  6. 6. The Most Significant Headwind from the Patent Cliffin 2012 Will Impact Earnings but Not Sales Loss of Exclusivity of Plavix® and Avapro® in the U.S.(1) Evolution of Group Evolution of Group "Other Revenues" “Income from Associates" €1,669m €1,102m Expected Impact on - 54% - 62% 2012 Business Net Income (4) ~ €1.4bn 2011 2012e 2011 2012e 2012 Business EPS 12% to 15% lower at CER than 2011(2)(3) (1) Avapro® on March 30, 2012 and Plavix® on May 17, 2012 (2) 2011 Business EPS: €6.65 (3) As announced in FY2011 results, barring major unforeseen adverse events and taking into account the loss of Plavix® and Avapro® exclusivity in the U.S., the performance of growth platforms, contribution from Genzyme, cost control and other generic competition 6 (4) At CER (Constant Exchange Rates)
  7. 7. Successful Execution of Strategy in 2011 TowardsSustainable Growth and Improved Risk Profile Increase innovation in 5 new molecular entities 1 R&D submitted Pursue external growth 2 opportunities Acquisition of Genzyme Adapt structure for Development of Growth 3 future challenges and platforms and savings plan opportunities 7
  8. 8. 1 R&D Pipeline Delivery Significantly Improved in 2011 5 new molecular entities submitted: Kynamro™(1) (mipomersen) Aubagio™ (teriflunomide) Mulsevo® (semuloparin) ®(2) Lyxumia (lixisenatide) ®(3) Zaltrap (aflibercept) Kynamro™, Aubagio™, Mulsevo®, Lyxumia® and Zaltrap® are registered trade names submitted to health authorities for investigational agents (1) Licensed from Isis Pharmaceuticals, Inc. (2) Licensed from Zealand Pharma (3) Partnership with Regeneron 8
  9. 9. 2 Successful Acquisition of Genzyme in 2011 1 Conclusion of the transaction in April 2011 2 Completing the integration Strong management team in place Focus on Rare Diseases and Multiple Sclerosis 3 Manufacturing recovery A SANOFI COMPANY 4 Creating synergies: US$230m in 2011 5 Advancing R&D pipeline Strong Phase III results with LemtradaTM (alemtuzumab) Oral eliglustat Phase III program fully recruited Lemtrada™ is a registered trade name submitted to health authorities for investigational agent alemtuzumab 9
  10. 10. 3 Excellent Performance of Growth Platforms in 2011 Growth is at CER (Constant Exchange Rates) (1) 2011 Growth Platforms and Genzyme sales increased by +21.7% at CER including €452m of A/H1N1 vaccine sales in 2010 and €2,395m of Genzyme sales in 2011 (2) 2011 Emerging Markets sales increased by +10.1% at CER including €361m of A/H1N1 vaccine sales in 2010 and €347m of Genzyme sales (3) 2011 Vaccines sales decreased by -5.5% at CER when including €452m of A/H1N1 vaccine sales in 2010 (4) Multaq® and Jevtana® 10
  11. 11. 3 A Strong Leadership Position in Emerging Markets Emerging Markets Sales In 2011, Emerging Markets Sales(1) +16% €10.1bn €10.1bn +9% +10.1% (2) €5.0bn 30.3% of Group Sales 2005 2006 2007 2008 2009 2010 2011 (1) World less North America (USA, Canada), Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg, Portugal, Holland, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia and New Zealand 11 (2) CER (Constant Exchange Rate)
  12. 12. AgendaSanofi – A Leading Presence in ChinaOutlook on the Healthcare Market in ChinaFocusing on DiabetesBuilding a Consumer Healthcare Presence Expanding in the Vaccines MarketSolid Position in Animal Health through Avian Innovation from China based R&D activities 12
  13. 13. Greater China: Growing Contributor to Sanofi’sLeadership Position in Emerging Markets Sanofi Sales in Emerging Markets (in EUR) 10.133m Other Emerging Countries Greater China(1) CAGR 9.075m 13% 7.356m 6.540m 6.280m 7% 8% 9% 10% 12% 2007 2008 2009 2010 2011 (1) Greater China: Mainland China, Hong Kong, Taiwan 13
  14. 14. Sanofi achieved Annual Sales in China of ~€1bn in 2011 Total Sanofi Sales in China(1) (in EUR) 981m CAGR 38% 699m 512m 374m 273m 2007 2008 2009 2010 2011 (1) Mainland China 14
  15. 15. Sanofi Is Progressively Developing its Key GrowthPlatforms in China Breakdown of Sales in China(1) by Business 2007 2011 Vaccines 12% Animal Health 4% Vaccines 12% Diabetes 22% 6% Diabetes 72% 9%Pharmaceuticals 63% CHC Pharmaceuticals Total Sales EUR 273m Total Sales EUR 981m (1) Mainland China 15
  16. 16. Sanofi Has Grown Faster than its Peers in China 2007(1) 2009(2) Q1 2012(3)1 ASTRAZENECA 1 PFIZER 1 PFIZER2 BAYER 2 ASTRAZENECA 2 ASTRAZENECA3 PFIZER 3 BAYER 34 JS.YANGZIJIANG FTY 4 4 BAYER5 ROCHE 5 JS. YANGZIJIANG FTY 5 KE LUN6 6 ROCHE 6 ROCHE7 SINO-SWED 7 KE LUN 7 JS. YANGZIJIANG FTY8 JS.L.Y.G.HENGRUI 8 SHANDONG QILU FTY 8 SHANDONG QILU FTY9 HLJ.HAERBIN PHARM. 9 JS.L.Y.G. HENGRUI 9 JS.L.Y.G. HENGRUI10 NOVARTIS 10 HLJ. HAERBIN PHARM. 10 MSD Source data: Ranked by sales value in LC RMB. (1) IMS CHPA Dec 2007 . (2) IMS CHPA Dec 2009 (3) IMS CHPA Q1 2012 16
  17. 17. Sanofi: Well Established in Greater China with a Fully Integrated Presence Sanofi’s Presence in China● Present since 1982● 11 regional offices with ~7,000 employees in Greater China Wulumuqi Shenyang Tangshan ● Of which >4,000 sales force Beijing Tianjin Jinan● Network of 6 manufacturing sites Nanjing Wuhan Shanghai HQ● Newly established CHC platform Chengdu Hangzhou Nanchang● Vaccines with local production Guangzhou Taipei● Animal Health with local production Greater China offices Shenzhen Hong Kong● Integration of Genzyme Regional offices Manufacturing site Pharmaceuticals● Regional R&D platform Manufacturing site Consumer Healthcare Manufacturing site Vaccines Manufacturing site Animal Health (Merial) 17
  18. 18. Agenda Sanofi – A Leading Presence in China Outlook on the Healthcare Market in China Focusing on Diabetes Building a Consumer Healthcare Presence Expanding in the Vaccines Market Solid Position in Animal Health through Avian Innovation from China based R&D activities 18
  19. 19. China: Main Macro Economic Indicators Point TowardContinued and Superior Growth Population in 2011(1) 1.34bn Estimated Real GDP Growth 2012-2017(2) 7-8% 7-8% Healthcare Expenditures as % of GDP(3) 4.5-5% 5% Middle-class and Affluent Population in 2015(4) 52% 52% Pharma Market Growth 2011-2016 (CAGR)(5) 5.7 16.1% (1) China 2010 population census (2) IMF World Economic Outlook,April 2012; internal analysis (CAGR) (3) WHO 2011, Global Health Expenditure Database; country data 2009 (4) Annual house hold income > US$10,000; BCG and internal analysis (5) IMS Market Prognosis China 2012-2016 (2012) 19
  20. 20. China Healthcare Reform Opportunities Challenges ● Better and broader basic medical insurance coverage ● Implementation of payment reform by the government, ● Improving medical services and patient care by CHCs(1) and such as global budget and rural health centers pay by disease Key ● Increasing government funding Healthcare ● Cost containment with price cuts for chronic diseases and Reform ● EDL policies to favor usage of vaccination Activities local cheap generics in CHCs(1) and township hospitals ● Improving quality of medical services (1) CHC – Community Healthcare Centers 20
  21. 21. The 2009 - 2011 Healthcare Reform Has Ledto a Significant Increase in Healthcare Investment Health Care Expenditure(1, 2, 3) Significant Incremental Healthcare Investment(3) RMB bn HC expenditure as % of GDP2,000 2009-2011: 16 15.8% 1,720 14 Original plan 850 RMB bn1,500 12 10 10.5% Updated report 1,134 RMB bn1,000 8 8.4% 866 503 5.1% 6 4.6% 4.7% 4.1% 5.1% 500 4 320 Investment into county healthcare 2 system, both infrastructure and 0 insurance 0 1997 2001 2005 2009 (1) Health care expenditure reflects the total expenditure on medical and health care services, which includes government expenditure, social expenditure and individual cash expenditure. – (2) WHO 2011: ‘Total expenditure on health as % of Gross National Product’ (GDP): U.S. = 15.8%; Germany = 10.5%; Brazil = 8.4% (3) Source: China National Bureau of Statistics, Ministry of Finance 21
  22. 22. China Expected to Become a ~150bn USD PharmaMarket by 2016 nd China will be the 2 largest Projected China Market Growth(2) Pharmaceutical market by 2015(1) RMB bn Growth (%) ● Market growth driven by increasing 18.0 1,200 demand in Cities and Counties 16.2% 16.4% 16.1% 16.0% 16.1% 15.9% ● Market growth also driven by 1,000 910 increasing “middle class” and aging 785 800 population 676 583 10.0 ● Impact from healthcare policies to 600 502 reduce drug prices expected to 431 continue 400 ● China is projected to generate 27% 200 of the world’s pharmaceutical market 0 0.0 growth over 2011-2015 2011 2012 2013 2014 2015 2016 (1) IMS consulting, China 2015 study (September 2011) (2) IMS Market Prognosis China 2012-2016 (2012) 22
  23. 23. AgendaSanofi – A Leading Presence in ChinaOutlook on the Healthcare Market in ChinaFocusing on DiabetesBuilding a Consumer Healthcare Presence Expanding our Reach in the Vaccines MarketSolid Position in Animal Health through Avian Innovation from China based R&D activities 23
  24. 24. Diabetes is One of the Largest Opportunitiesin the Healthcare Space in China Adults with diabetes in China(1) >90m Patients not diagnosed(2) ~2/3 Insulinized patients in China in 2010(3) 4.6m Expected growth of China diabetes market between 2012 and 2017 (CAGR)(4) 14.4% Expected size of Chinese diabetes market in 2020(4) $3.2bn (1) Yang et al., 2010 (2) Internal estimates based on multiple sources (3) IMS data and internal patient model (4) IMS Therapy Prognosis 2011-2020 China Diabetes 24
  25. 25. Sanofi’s Share in the Diabetes Market in ChinaAlmost Tripled over the Last 4 Years China Diabetes Market Share by Diabetes Player (Value) Market Share (%) 2007(1) MAT Q1 2012(2) +85.3% Lilly Novo Bayer Others (1) IMS CHPA Dec 2007 . (2) IMS CHPA March 2012 25
  26. 26. Lantus® Has Reached 17.2% Market Share of TotalInsulins in China in March 2012(1) ® Lantus Qtr. Value Market Share(2) in Insulin (%) Enter NRDL 15.8% ● Lantus® launched in China in 2004 16 Launch 14.7% SoloStar® 15.4% ● SoloStar® launched in 2009 14 14.9% 13.1% 12.4% ● Recent improved market access in 12 Chinas two largest insulin markets 10.5% ● Shanghai (December 2010) 10 8.5% ● Beijing (July 2011) 8 7.1% 6.6% ● Leading insulin in several big cities(3) Enter ~70% 6 provincial RDL ahead of Novo Nordisk 4 3.5% ● Only available in disposable pens 2.7% 2 1.4% ● Low average daily dosing per patient 0.3% 0.7% 0 04- 05- 05- 06- 06- 07- 07- 08- 08- 09- 09- 10- 10- 11- 11- 12- Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 (1) IMS CHPA March 2012 (2) MS CHPA MAT Q1-2012 (3) IMS CHPA MAT 03/12; Cities where Lantus is the #1 insulin include Xi’an, Shenzhen, Suxi region, Chengdu, Dalian, Guangzhou. 26
  27. 27. Delivering the Full Value of Other Portfolio Assets in theChinese Diabetes Market Established Insulins● From Lantus® to Lantus® -based solutions● Further expand basal insulin treatment paradigm Optimized Devices● Expand leadership position with Amaryl®● Grab untapped opportunities with Apidra®, Insuman® and Blood Glucose Monitoring devices Innovative Blood● Local clinical development ongoing for Glucose Monitoring Lyxumia® 27
  28. 28. “China Initiative for Diabetes Excellence” -A Major Public-Private Partnership in Diabetes 5 Train 500 Cascade to 10,000 Educate millions years program emerging KOLs country doctors of patients● First public-private partnership to develop a patient-centric, integrated diabetes management program in China● Landmark program for the prevention and control of diabetes announced in May 2011 ● 5-years initiative led by the Bureau of Disease Prevention and Control of the Ministry of Health ● Collaboration with the Chinese Diabetes Society● Train 500 emerging experts, followed by 10,000 community and county doctors● Enhancing patients’ self-management capabilities through education and organized peer support groups 28
  29. 29. Continuous Commitment to Fighting Diabetes in China● Local Manufacturing of Lantus® SoloSTAR® Pen in Beijing Facility inaugurated in May 2012● A strategic decision to manufacture Lantus® SoloSTAR® locally in China ● Capacity of 48m units● Second phase of the US$90m project to install a high-tech cartridge aseptic production line announced 29
  30. 30. Agenda Sanofi – A Leading Presence in China Outlook on the Healthcare Market in China Focusing on Diabetes Building a Consumer Healthcare Presence Expanding in the Vaccines Market Solid Position in Animal Health through Avian Innovation from China based R&D activities 30
  31. 31. Sanofi Has Become a Global Player in CHC Key Actions Results(1)1● Expanded market position beyond European focus of Sanofi’s legacy CHC business #3 #3 in Russia ● Enlarged revenue base Among2 top 10 in Central & through 11 acquisitions Eastern Scaling up in U.S.(2) Europe in China3● ImprovedChina U.S. and presence in the and Asia ● Obtained access to new retail4 and distribution channels in Asia ● Experienced management #15 recruited to drive CHC business in Latin #1 America in Australia in regions6● Continued expansion in all key CHC markets through regional hubs Target of high single digit growth over 2012-2015 (1) Nicholas Hall, OTC YearBook 2011, DB6 2011 (2010 sales) (2) Including Allegra® OTC sales in 2011, internal estimates 31
  32. 32. Sanofi has moved up to #4 among all MNCs in theAttractive Consumer Healthcare Market in China● China is the 2nd largest OTC market Top MNCs in the Consumer ● $12.3 billion, +8.4% in 2011(1) Healthcare Market in China(1)● Per capita consumption still low vs. most 1 Johnson & Johnson 3.4% developed markets 2 GSK 1.9% 3 Pfizer 1.4%● CHC market offers excellent outlook ● Growing affluence and population of the 4 1.0% urban middle class 5 Bayer 0.9% ● Increased awareness of self medication 6 Rohto 0.8% ● Increase in government spending on healthcare 7 Bausch+Lomb 0.6% 8 MSD 0.5%● Sanofi has entered the dynamic CHC 9 A&Z 0.5% market in China through two major transactions over the past 2 years 10 BMS 0.5% (1) Nicholas Hall DB6 2012; MNC = Multinational Company 32
  33. 33. Accelerating CHC in China Three-pronged Strategy in Consumer Healthcare in China 1 External Growth 2 Enlarge Portfolio 3 Organic Growth and OTC Switches Top MNC in China • Vitamins, Minerals, • Lactacyd launched in May Supplements(1) 2011 • Cough & Cold(2) • Essentiale: Planned Rx- OTC Switch • Women’s Healthcare Enlarged portfolio & Leverage platform by Scaling up to create leadership in two biggest access to expanding top position in China categories in China(3) distribution channels (1) 21 Super Vita: #2 VMS brand by volume in China (IMS Pharmatrend June 2011) (2) Good Baby: #3 Cold brand by value in China (IMS Pharmatrend June 2011) (3) Nicholas Hall, OTC YearBook 2011, DB6 2011 (2010 sales) 33
  34. 34. Two Leading Brands in the Largest OTC Categories nd China’s 2 largest #1 leading pediatric Multi-Vitamin brand(1) Cough & Cold brand(2) (1) IMS 24 cities, MAT Y12March: 21VT volume share ranks #2, MS 17.3%, (2) Euromonitor 2012 report (value) value share ranks #5, MS 7.1% 34
  35. 35. Sanofi has Competitive Strength in the CHC Marketin China Brand availability Local Production• Well established national • Local cost structure distribution network • 2 production sites in• 260+ cities direct coverage Hangzhou and Tangshan,• Presence on Tier 2-6 cities • New VMS factory in Tangshan,• Cover 70,000+ drugstores Hangzhou to be completed Hebei• Over 100 Tier 1 distributors by end of 2012• 80+ national key chains • Highest standards for• Over 1,000 sales force and Hangzhou, Quality, Sustainability and merchandising team Zhejiang Supply Chain 35
  36. 36. Agenda Sanofi – A Leading Presence in China Outlook on the Healthcare Market in China Focusing on Diabetes Building a Consumer Healthcare Presence Expanding in the Vaccines Market Solid Position in Animal Health through Avian Innovation from China based R&D activities 36
  37. 37. Sanofi Pasteur is a Leading Multinational Company inthe Vaccines Market in China Vaccines Market in China ● A highly fragmented vaccines market in China Other ● Over 40 local players MNCs ● Annual birth cohort of ~15m babies ● Sanofi Pasteur is the #1 MNC(2) Chinese Local vaccines company and the #2 Manufacturers player in the overall market(1) ● World-class Flu Vaccines CNBG / Sinopharm manufacturing site in Shenzhen ● Commercial production in 2013 ● Pentaxim® and Imovax® are growth drivers in the pediatric market Estimated Total Market Size ~€1.1bn(1) (1) Internal analysis (2) MNC = Multinational Company 37
  38. 38. Pentaxim® Has Set New Milestones in China’sVaccines Market Pentaxim® is the first 5-in-1 combination vaccine in China ● >200m RMB sales in 1 year after launch in the private market ● Breakthrough in Class II vaccines market ● Included in Chinese Preventive Medicine Association published guidelines on 5-in-1 combo-vaccines in China 38
  39. 39. Imovax® is Safeguarding a Healthy Future for China’sChildren ®Imovax Polio is the only injectable Polio vaccine registered in China ● 1.3m babies vaccinated since launch and >3m doses administered within 2.5 years after launch ● Opportunity to access the public market ● One of the safest pediatric vaccines, recommended by the WHO 39
  40. 40. AgendaSanofi – A Leading Presence in ChinaOutlook on the Healthcare Market in ChinaFocusing on DiabetesBuilding a Consumer Healthcare Presence Expanding in the Vaccines MarketStrong position in Animal Health through Avian Innovation from China based R&D activities 40
  41. 41. Merial: Sustained Performance Driven by EmergingMarkets Sanofi total sales in Animal Health 2011 €2.03bn, +4.3%(1) 25% in the Emerging Markets(2), +12.4% A Leader in the Companion Animals market Dog population in China with access to flea & tick products is estimated 7m Ambition to cover >80% of the pets market in China to drive growth of Frontline® Plus (1) Growth at CER (Constant Exchange Rates) (2) World less North America (USA, Canada), Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg, Portugal, Holland, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia and New Zealand 41
  42. 42. Strong Position in the Avian Biologicals Market in China Rank(1) Company MS% ● China is a huge animal production market 1 CAHIC 23% ● Broiler population of 8.3 billion 2 JinYu 11% ● Layer population of 1.6 billion ● Porker production of 650 million 3 Yebio 7% ● A highly fragmented Animal Health 4 Da Hua Nong 6% market of RMB 18bn (USD 2.6bn) 5 Weike 6% ● 2/3 Pharmaceuticals, 1/3 Biologicals ● >1,500 mostly local players 6 5% ● Livestock with a low level of industrialized operations 7 Boehringer Ingelheim 3% ● In Biologicals, Merial is #6 and #1 Multinational Company in China(1) 8 Wuhan Chopper 2% ● 9% market share in Avian 9 MERCK AH (I/SP) 2% Biologicals 10 Guangdong Winsun 1% (1) CEESA, China Vet Drug Association, internal analysis 42
  43. 43. Agenda Sanofi – A Leading Presence in China Outlook on the Healthcare Market in China Focusing on Diabetes Building a Consumer Healthcare Presence Expanding our Reach in the Vaccines Market Strong position in Animal Health through Avian Innovation from China based R&D activities 43
  44. 44. Leverage Local and Regional Innovation through Asia-Pacific based R&D Activities, with China leading the Effort ● 2005 - Sanofi established a Clinical Research Unit in China ● 2008 - Expanded to a full R&D Center Footprint & Milestones ● 2010 - Established the AP R&D Therapeutic Strategy Unit ● 2012 - China R&D becomes part of Asian Hub – One of the Sanofi Global R&D Centers ● Virtual Discovery and Captive Development ● Access local talent ● Leverage cutting edge science & capture innovation in China Operational ● Coupled with Sanofi’s strong in-house development Model capability ● Forming win-win partnerships across the entire R&D value chain in China 44
  45. 45. Partnerships with Top Chinese Institutions andBiotechs for Innovative ResearchAcademic Partnerships NERCDND Tianjing Institute of HematologyIndustrial Partnerships KBI NCSED 45
  46. 46. Slit Trap - An Innovation from ChinaDeveloped by Sanofi Asia-Pacific R&D● Hepatocellular carcinoma – a high unmet need in the Slit-Trap A recombinant fusion Protein Asia-Pacific region ● Responsible for ~half million annual deaths ● High mortality, short survival, and inadequate Standard of Care Slit Trap binds and depletes● Slit Trap – first in class agent targeting a novel Slit thereby blocking anticancer drug target – Robo/Slit signaling pathway Robo/Slit signaling● Original technology licensed from Shanghai Institutes for Sl Biological Sciences it Robo● Currently in preclinical development phase ● First in human study planned in Asia-Pacific region Robo/Slit engagement● Extensive collaboration with leading experts and key promoting angiogenesis translational medicine centers in the region and metastasis 46
  47. 47. CONCLUSION 47
  48. 48. Sanofi Is Poised to Sustain Significant Growthin China● Solid historical presence and fully-integrated structure● Strong socio-economic drivers underpinning growth● Well-suited portfolio for China’s medical needs (Rx, CHC, Vaccines, Diabetes, Animal Health, Genzyme)● Growing position in Diabetes by maximizing the value of the entire portfolio● Increasing access to new market segments at the county level● Significant investments in local production facilities serving all Growth Platforms and accelerated investment in R&D● Industry lead in talent attraction, development and retention 48
  49. 49. Continued Execution of Strategy Expected to DeliverSustainable Growth Over 2012-2015 Expected 2012-2015 Sales CAGR At least 5% Diversified sources of growth and scale in businesses with significant barriers to entry  Low small molecule patent exposure in mature markets(1) ~6% Large Emerging Markets presence(2) 38-40% Potential new product launches(3) 18 Operating margin evolution Rebounding 2012-2015 Business EPS CAGR > Sales CAGR Increased dividend payout ratio(4) 50% of 2013 results Corporate Social Responsibility  (1) 2012 sales from chemical products exposed to patent expiry in the U.S., Japan and Western Europe over 2012/2015 (2) Based on 2015 internal estimates (3) Over 2012-2015 (4) Dividend paid in 2014 49
  50. 50. The Dividend Remains a Key Element of ShareholderValue Creation Evolution of Dividend Dividend Payout ● Dividend of €2.65 Payout 40% 35% per share for 2011 €2.65 ● Progressive increase of €2.40 €2.50 +6% payout target to 50% for 2013 €2.20 Business Net Income(1) 2008 2009 2010 2011 (1) Dividend to be paid in 2014 50

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