General Meeting 2012

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General Meeting 2012

General Meeting 2012

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  • 1. Friday May 4th, 2012 ANNUALGENERAL MEETING2 0 1 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. Agenda Introduction & Governance ● Serge Weinberg, Chairman of the Board of Directors Compensation Policy ● Gérard Van Kemmel, Director, Compensation Committee 2011 Achievements & Outlook ● Christopher A. Viehbacher, Chief Executive Officer Financial Performance ● Jérôme Contamine, Executive Vice President, Chief Financial Officer Questions & Answers Vote on the Resolutions 3
  • 4. INTRODUCTION & GOVERNANCESerge WeinbergChairman of the Board of Directors 4
  • 5. An Independent and Diversified Board Composition Today Our Proposal 15 Directors  Nomination of a new Director:  Mr. Laurent Attal  A majority of independents*  Renewal of five current (8 out of 15) Directors:  3 women, or 20%  Mr. Uwe Bicker  Mr. Jean-René Fourtou  7 Directors of a nationality other  Ms. Claudie Haigneré than French, or 46%  Ms. Carole Piwnica  No over-Boarding  Mr. Klaus Pohle (*) Under the independence criteria of the AFEP-MEDEF Code 5
  • 6. An Active and Engaged Board ● 10 meetings in 2011 including 2 extraordinary sessions tied to the acquisition of Genzyme ● The Board in 2011 profited from presentations of the heads of each of High Board the Group’s principal activities Participation Rate: ● The Chairman of each consultative over 90% committee informs the Board of its preparatory work and its recommendations 6
  • 7. Dissociated Functions of the Chairman and the ChiefExecutive Officer ● Organisational mode chosen by the Board of Directors ● The Chairman organizes and directs the Board of Directors ● The Chairman ensures the link between the Board of Directors and the Corporate management, and with the Company’s shareholders 7
  • 8. Four Specialist Committees Audit Committee Compensation Committee 3 financial experts 3 out of 5 members are Legal expertise brought by independent* Ms. Piwnica Participation  4 meetings in 2011 Participation Rate Rate 3 out of 4 members are indépendent* 100%  The Committee’s activities 90% will be developed by  7 meetings in 2011 Mr. Van Kemmel in  Regular review of the principal his presentation risks with accounting effects  In 2011, specific reviews of insurance, fiscal and environmental risks, and compliance (*) Under the independence criteria of the AFEP-MEDEF Code 8
  • 9. Four Specialist Committees (cont’d) Appointments and Strategy Committee Governance Committee 4 out of 7 members are 3 out of 7 members are independent* independent* Participation Participation 2 meetings in 2011 Rate 2 meetings in 2011 Rate 75% 90% Subjects treated Subjects treated  Revision of the Board Charter  Acquisition of Genzyme  Selection of a new Director  R&D  Evaluation of the workings of the Board (*) Selon les critères d’indépendance posés par le code AFEP-MEDEF 9
  • 10. Oversight of Risk is a Critical Board Function ● The existence of reliable procedures for the supervision of the internal controls framework ● The identification, evaluation and management of risk by the Executive Committee The Board oversees: ● The accounting treatment of risks having a potential financial incidence ● The shareholder information, through the Annual reports on Form 20-F and Document de référence and the Chairman’s report on internal controls ● The orientations for internal controls and risk management through: The • Risk Committee Executive Committee • Executive Compliance Committee defines: • Specialized services 10
  • 11. Stock Overperformance vs. CAC40 since Sept. 200870 €65 €60 €55 € €58.21 +19.0%50 €45 €40 €35 € CAC 3 266 pts30 € -28.0%25 €20 € Bloomberg Data 02/09/2008 – 27/04/2012 11
  • 12. Best Performing Stock Among Euro Pharma Peerssince Sept. 2008 54.8% 20.4% 19.0% 10.4% 7.7% 5.1% 0.3% -3.1% -9.6% -12.3% -11.5% -18.0% Novartis Roche Lilly J&J AZN Bayer Abbott GSK Merck Sanofi Pfizer BMS & Co Bloomberg Data 02/09/2008 – 27/04/2012 12
  • 13. The Dividend Remains a Key Element ofshareholder Value Creation Evolution of Dividend Dividend Payout Payout 40% 35% ● Proposed dividend of €2.65 €2.65 per share for 2011(1) €2.50 €2.40 +6% ● Progressive increase of €2.20 payout target to 50% for 2013 Business Net Income(2) 2008 2009 2010 2011 (1) To be submitted for approval by the Shareholders’ Annual General Meeting on May 4, 2012 (2) Dividend to be paid in 2014 13
  • 14. Scrip Dividend and Share Buy-back in 2011 Scrip Dividend 38 139 730 million shares issued 2011 21 655 140 million shares bought back for cancellation Share buy-back Weighted average share price of €49.62 per share 2011 Total amount of €1,074m 14
  • 15. Shareholder Structure at 31 December 2011 By category of shareholders in %(1) Rest of the world 0,7 Canada 1,3 L’Oréal Switzerland Germany Asia 2,2 3,4 8,8 Other European Countries 3,5 Individual Shareholders 8,0 5,4 TotalInstitutional 3,2 Employees Investors 1,4 78.5% United Kingdom 1,3 Treasury 1,4 12,9 1 340 918 811 Others actions 18,3 28,4 France United States (1) Source: Thomson Reuters at December 31, 2011 15
  • 16. COMPENSATION POLICYGérard Van KemmelDirectorCompensation Committee 16
  • 17. Composition of the Compensation Committee ● The Compensation Committee is composed of: • Thierry Desmarest • Jean-René Fourtou • Claudie Haigneré • Lindsay Owen-Jones • Gérard Van Kemmel (Président) ● In compliance with the AFEP-MEDEF Code, more than half the members are independent (3 out of 5) 17
  • 18. Mission of the Compensation Committee ● Develop recommendations and proposals for the Board on the following subjects: ● All aspects of remuneration of the CEO and the Chairman ● The equity compensation policy (frequency, category of beneficiaries, performance conditions) ● Allocation of director attendance fees ● Provide an opinion on the compensation policy applied to the top management 18
  • 19. Compensation of the Chairman of the Board of Directors(in euros) 2009(1) 2010(2) 2011 2012Base compensation 0 439,748 700,000 700,000Variable compensation 0 0 0 0Attendance fees 6,215 35,625 0 0Benefits in kind 0 4,785 9,463 *Total 6,215 480,158 709,463 *Options 0 0 0 0Performance shares 0 0 0 0(1) Appointed Director in December 2009(2) Appointed Chairman in May 2010* To be defined as of December 31, 2012 19
  • 20. Compensation of the Chief Executive Officer Base Compensation 2008 : Initial amount set (€1,200,000) Increase in the base, after 4 years 2009 : 0 % 2010 : 0 % 2011 : 0 % 2012 : 5 % Variable Compensation 2011 Variable2011 Compensation 2012 Award of €2,280,000 - 190% of base salary Target 200% + of base (unchanged) Criteria 2011 : Criteria 2012 : Financial objectives (ex Genzyme) Financial objectives Growth platforms R&D results R&D Development of 2015-2020 strategic plan Genzyme integration Organization of the Group Organizational and social policy Positive dynamic of employee motivation and Group image 20
  • 21. Compensation of the Chief Executive Officer(in euros) 2009 2010 2011 2012Base compensation 1,200,000 1,200,000 1,200,000 1,260,000Variable compensation 2,400,000 2,400,000 2,280,000 Target 200% +Attendance fees 0 0 0 0Benefits in kind 69,973 5,729 8,287 *Total 3,669,973 3,605,729 3,488,287 *Options(1) 250,000 275,000 300,000 240,000Performance shares(1) 65,000 0 30,000 42,000 (1) Subject to performance conditions, a condition of continued employment, and a lock-up requirement * To be defined as of December 31, 2012 21
  • 22. Equity Compensation ● Fundamentally revamped in 2011 with these objectives: ● Limit the dilution of shareholders: use of performance share grants, except for a limited number of executives who also receive options ● All attributions are subject to demanding performance conditions ● The nature of grants (shares vs options) is differentiated according to the positioning of the beneficiary ● Evolution in 2012: ● Performance period increased to 3 years ● Decreased weighting of stock options: limited to the CEO (for 50% of the grant) and to members of the Global Leadership Team (for 30% of the grant) 22
  • 23. Performance Conditions ● All grants of performance shares and options are subject to performance under two internal criteria: ● Business Net Income ● Return on Assets (ROA) ● Grants to the CEO are also subject to performance under a third, external criteria: ● Total Shareholder Return (TSR) 23
  • 24. Resolution Authorizing Performance Shares ● Essential for motivation, retention and recruitment ● Renewal of the authorization voted in May 2009 ● Requested allocation: 1.2 % ● Demanding performance conditions over 3 consecutive years ● Board commitment to publish the levels of achievement of the conditions in the annual report 24
  • 25. Director Attendance Fees ● Compensation provided to Directors ● Proportional to activity (Board and Committee sessions) Principles ● Differentiated rates (Committee Chairs; foreign members) ● Not distributed to Chairman of the Board or to the CEO ● Rates unchanged 2011 ● Slight reduction of the amount actually distributed 2012 ● Rates unchanged 25
  • 26. 2011 ACHIEVEMENTS & OUTLOOKChristopher A. ViehbacherChief Executive Officer 26
  • 27. 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 27
  • 28. 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 Q3 Q4 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® 28 U.S. and BMS Alliance (active ingredients of Plavix® and Avapro® sold to BMS)
  • 29. 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 ~ €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) Barring major unforeseen adverse events 29
  • 30. 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 plateforms and savings opportunities plan 30
  • 31. 1 R&D Pipeline Delivery Significantly Improved in 2011 5 new molecular entities submitted: Kynamro™ (mipomersen) Aubagio™ (teriflunomide) Mulsevo® (semuloparin) ® Lyxumia (lixisenatide) ® Zaltrap (aflibercept) Kynamro™, Aubagio™, Mulsevo®, Lyxumia® and Zaltrap® are registered trade names submitted to health authorities for investigational agents 31
  • 32. 1 Focusing on Delivering a Promising Development Portfolio  New glargine formulation  Otamixaban  Glargine-lixisenatide combo  Sarilumab EXAMPLE TEXT Mid-term Go ahead and replace it with opportunities  Dengue vaccine  JAK-2 inhibitor your own text.  Eliglustat  Iniparib  Anti-PCSK-9 mAb  Ombrabulin 32
  • 33. 1 Optimizing R&D Footprint and Operational Effectiveness Key Benefits European Leverage local and North American hub regional opportunities hub France German hub hub Asian Maximize cross Boston hub hub fertilization and synergies Expedite decision-making Increase access to external innovation 33
  • 34. 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 Oral eliglustat Phase III program fully recruited 34
  • 35. 2 Framingham Site Cleared Allowing a Return to Normal Supply Levels of Fabrazyme® Framingham, Massachusetts, U.S. A SANOFI COMPANY 35
  • 36. 2 Development of a Multiple Sclerosis Franchise • Once-daily oral therapy • File submission in August 2011 in the U.S. and in February 2012 in Europe • Superior efficacy • Submission planned in Europe and in the U.S. in Q2 2012 A SANOFI COMPANY 36
  • 37. 3 Excellent Performance of Growth Platforms in 2011 Growth Platforms €19,308m +10.8% excluding Genzyme & A/H1N1(1) Emerging Markets €10,133m +10.4% excluding Genzyme & A/H1N1(2) Vaccines €3,469m +7.2% excluding A/H1N1(3) Diabetes Solutions €4,684m +12.0% Consumer Health Care €2,666m +22.8% Animal Health €2,030m +4.3% Innovative Products(4) €449m n/a 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® 37
  • 38. 3 Balanced Geographic Sales Split (2) United Western Emerging ROW States Europe Markets(1) €9,957m €9,130m €10,133m €4,169m +6.8%* -4.0%* +10.1%* +13.8%* 12.5% 29.8% 30.3% 27.3% (*) : Sales growth at CER excluding A/H1N1 and Genzyme is : -5.7% for U.S., -10.5% for Western Europe, +10.4% for Emerging Markets, +6.3% for ROW (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 38 (2) Japan, Canada, Australia and New Zealand
  • 39. 3 Strong Leadership 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 39 (2) CER (Constant Exchange Rate)
  • 40. 3 Diabetes Shows Impressive Double Digit Growth Quarterly Sales (€m)(1) 1st antidiabetic €1,054m in the world +17.8% +14.5% +14.6% €3.9bn in 2011 +13.2% +15.0%(1) Q1 2011 Q2 2011 Q3 2011 Q4 2011 (1) Growth at CER (Constant Exchange Rates) 40
  • 41. 3 Record Year for Influenza Vaccination €3,469m +7.2% excluding A/H1N1(1) A record year for the influenza vaccine against seasonal flu thanks to innovation: Fluzone® High Dose Fluzone® Intradermal (1) Growth at CER (Constant Exchange Rates) 41
  • 42. 3 Robust Consumer Health Care Growth Successful launch of the Consumer Health Care antihistaminic Annual Sales (€m) €2,666m in the U.S.A. €1,203m +22.8% €211m at CER #1 OTC brand for Sanofi globally FY 2008 FY 2009 FY 2010 FY 2011 Growth at CER (Constant Exchange Rates) 42
  • 43. 3 Merial: Sustained Performance Driven by Emerging Countries Excellent resilience in Animal Health €2.03bn +4.3%(1) 25% in the Emerging Markets +12.4% (1) Growth at CER (Constant Exchange Rates) 43
  • 44. 3 €2bn Cost Savings Target Achieved in 2011 OpEx Savings(1)(2) €2bn €1.3bn €0.5bn Plan Actual Plan Actual Plan Actual 2009 2010 2011 New plan to generate €2bn incremental cost savings by 2015 (1) At CER, before inflation and tax on a constant structure basis compared to 2008 (2) Not including Industrial Affairs net savings evaluated at €200m 44
  • 45. Patent Cliff Impact on EPS Mitigated in 2011 Business EPS €7.06 €6.61 €6.65 €5.59 -3.8% at CER 2008 2009 2010 2011 CER : Constant Exchange Rates 45
  • 46. Continued Execution of Strategy Expected to DeliverSustainable Growth Over 2012-2015 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: a key performance driver  (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 46 (4) Dividend paid in 2014
  • 47. Corporate Social Responsibility:At the Heart of the Company Strategy Major & Unique Initiatives in Four Fields ● Access to Healthcare Patient ● Patient Safety ● Innovation for the Patient ● Climate Change and Energy Planet ● Water ● Pharmaceuticals in the Environment ● Ethics in R&D Ethics ● Business Ethics ● Diversity People ● Workplace Health & Safety ● Employee Development 47
  • 48. FINANCIAL PERFORMANCEJérôme ContamineExecutive Vice President, Chief Financial Officer 48
  • 49. Genzyme and Growth Platforms Overcome Lossof Blockbusters in 2011 FY 2011 Sales (€m) -704 33 389 +2 569 32 367 -2 206 +1 943 -452 -128 FY 2010 Key A/H1N1 Others Growth Genzyme(3) FX Impact FY 2011 Genericized platforms(2) Products (1) (1) Lovenox® U.S., Plavix® Western EU, Taxotere® Western EU & U.S., Eloxatin® U.S., Ambien CR® U.S., Allegra® U.S., Aprovel® Western EU, Xyzal® U.S., Xatral® U.S., Nasacort® U.S. - Generic makers of oxaliplatin required to cease selling in the U.S. since June 30, 2010 but judgement is under appeal by Sun. (2) Emerging Markets, Diabetes Solutions, Vaccines, Consumer Health Care, Innovative Products & Animal Health 49 (3) Consolidated since April 1st, 2011
  • 50. FY 2011 Results Benefited from GenzymeAcquisition€m FY 2011 FY 2010 % Change % Change (reported €) (CER)Net sales 33,389 32,367 +3.2% +5.3%Other revenues 1,669 1,669 0.0% +4.0%Cost of sales (10,426) (9,302) +12.1% +14.3%Gross profit 24,632 24,734 -0.4% +1.9%R&D (4,811) (4,556) +5.6% +7.4%SG&A (8,536) (8,171) +4.5% +6.7%Other current operating income & expenses 4 77 - -Share of Profit/Loss of associates 1,102 1,036 - -Minority interests (247) (257) - -Business operating income 12,144 12,863 -5.6% -3.9%Business operating margin 36.4% 39.7% - - CER: Constant Exchange Rates 50
  • 51. Patent Cliff Impact on BNI Largely Mitigated in 2011€m FY 2011 FY 2010 % Change % Change (reported €) (CER)Business operating income 12,144 12,863 -5.6% -3.9%Net financial expenses (412) (362) - -Income tax expense (2,937) (3,286) - -Effective tax rate -27.0% -28.0% - -Business net income 8,795 9,215 -4.6% -2.7%Net margin 26.3% 28.5% - -Business EPS €6.65 €7.06 -5.8% -3.8%Average number of shares outstanding (in million) 1,321.7 1,305.3 - - BNI: Business Net Income CER: Constant Exchange Rates 51
  • 52. Decrease in OpEx Excluding Genzymeand Good Control of Cost Ratios Cost of Sales (%) R&D/Sales Ratio (%) SG&A/Sales Ratio (%) 31.2% 28.8% 25.2% 25.6% 14.1% 14.4% 2010 2011 2010 2011 2010 2011 52
  • 53. From Business Net Income to Consolidated NetIncome€m 2011 2010 % Change (reported €)Business net income 8,795 9,215 (4.6%)Amortization of intangible assets (3,314) (3,529)Impairment of intangible assets (142) (433)Expenses arising on the workdown of acquired inventories (476) (142)Restructuring costs (1,314) (1,384)Gains and losses on disposals, and litigation (327) (138)Tax effect & other tax items 2,482 1,856Share of items listed above attributable to 6 3non-controlling interestsRestructuring costs and expenses arising from the impact of (32) (58)acquisitions on associates and MerialNet income attributable to equity holders of Sanofi 5,693 5,467 4.1% 53
  • 54. Strong Free Cash Flow Generated in 2011 Allowingfor a Decrease in Net Debt● Continued strong Free In €m -1,644 Cash Flow of €8,358m + €2,016m● CapEx limited to €1,644m +10,002 FCF despite inclusion of CapEx 8,358 from Genzyme and Merial -14,217 -1,577● Net debt below 1X EBITDA ● Reasonable leverage -10,859 ● Low average cost of gross debt of 2.6% in 2011 -2,446 -977 Net Debt Net Cash from CapEx Acquisitions Dividend & Restructuring Net Debt Dec 31, 2010 Operating & Licensing Share Costs & Dec 31, 2011 Activities (1) Repurchase Others (2) (1) Excluding Restructuring Costs (2) Including -€754m Fx translation effect on Net Debt vs. end of Dec 2010 54
  • 55. Solid Credit Ratings Agencies Short-term rating Long-term rating Outlook Moody’s P-1 A2 Stable Standard & Poors A-1+ AA- Stable 55
  • 56. A Strong Balance Sheet Variation vs. In €bn December 31, 2011 December 31, 2010 ASSETS Intangible assets 61.7 + 20.9 Other non-current assets WCR Net cash (B) 17.2 6.1 + 1.0 4.1 - 2.4 LIABILITIES & EQUITY 56.4 + 3.1 Equity attributable Provisions and other non-current liabilities Financial debt (A)* 17.7 + 4.2 15.0 + 6.9 Net Debt (A-B) 10.9 + 9.3 (*) Including interest rate and currency derivatives used to hedge debt 56
  • 57. 2011 Was a Year of Significant Achievements Key year in transforming Sanofi Successful acquisition and integration of Genzyme Double-digit sales increase of growth platforms(1,2) Growth platforms and Genzyme represent 65% of sales Initial €2bn cost savings program completed by end of year(3) Submission of 5 new products to regulatory agencies Limited erosion of Business EPS of 3.8% at CER despite the significant impact of generic competition Continued increase of dividend (1) Excluding Genzyme and A/H1N1 (2) Growth platforms [Emerging Markets, Diabetes Solutions, Vaccines excluding A/H1N1, CHC, Innovative Products (Multaq® and Jevtana®), Animal Health] 57 (3) Before inflation and tax on a constant structure basis vs. 2008
  • 58. ANNUAL GENERAL MEETING 2012Questions & Answers 58
  • 59. ANNUAL GENERAL MEETING 2012Vote on the Resolutions 59