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Annual Results 2011

Annual Results 2011

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    Annual Results 2011 Annual Results 2011 Presentation Transcript

    • 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 Sanofi’s 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 labelling 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 Group’s 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 Sanofi’s annualreport on Form 20-F for the year ended December 31, 2010. Other than as required by applicable law, Sanofidoes not undertake any obligation to update or revise any forward-looking information or statements. 2
    • Agenda Key Highlights on Strategy Execution ● Christopher A. Viehbacher, Chief Executive Officer Financial Performance ● Jérôme Contamine, Executive Vice President, Chief Financial Officer Business Performance ● Hanspeter Spek, President, Global Operations R&D Update ● Dr. Elias Zerhouni, President, Global Research & Development Conclusion ● Christopher A. Viehbacher, Chief Executive Officer Q&A Session 3
    • KEY HIGHLIGHTSON STRATEGY EXECUTIONChristopher A. ViehbacherChief Executive Officer 4
    • Our Key Messages for Today 1 Strategy execution is on track 2 2011 results demonstrate importance of growth platforms and Genzyme acquisition 3 2012 is a transition year 4 We are set to deliver sustainable growth over 2012-2015 5
    • Executing Successful Strategy to Reposition Sanofi 1 Increase innovation in R&D Deliver sustainable growth Pursue external growth 2 and generate opportunities improved shareholder returns Adapt structure for future 3 challenges and opportunities 6 6
    • 1 R&D Pipeline Delivery Significantly Improved in 2011 Five new molecular entities submitted: Kynamro™ (mipomersen) – hoFH and severe heFH in Jul 2011 in EU Aubagio™ (teriflunomide) – RMS in Aug 2011 in the U.S. and Feb 2012 in EU Visamerin® / Mulsevo® (semuloparin) – VTE prevention in chemo-treated patients in Sep 2011 in the U.S. and EU Lyxumia® (lixisenatide) – Type 2 diabetes in Oct 2011 in EU Zaltrap® (aflibercept) – 2L-mCRC in Dec 2011 in EU and Feb 2012 in the U.S. Kynamro™, Aubagio™, Visamerin® / Mulsevo®, Lyxumia® and Zaltrap® are registered trade names submitted to health authorities for investigational agents hoFH: Homozygous Familial Hypercholesterolemia heFH: Heterozygous Familial Hypercholesterolemia RMS: Relapsing Forms of Multiple Sclerosis 7 VTE: Venous Thrombo Embolism mCRC: Metastatic Colorectal Cancer
    • 2 Successful Acquisition of Genzyme in 2011 1 Completing the integration Strong management team in place Focus on Rare Diseases and Multiple Sclerosis 2 Ensuring manufacturing recovery FDA and EMA approvals granted for Framingham plant to supply Fabrazyme® Progress towards focusing Allston plant on Cerezyme® Target inventory increase of Cerezyme® and Fabrazyme® A SANOFI COMPANY 3 Creating synergies Achieved synergies of $230m in 2011 4 Advancing R&D pipeline Strong Phase III results with LemtradaTM Oral eliglustat Phase III program fully recruited Cambridge positioned as primary U.S. research site 8
    • 3 €2bn Cost Savings Target Achieved in 2011 OpEx Savings(1,2) €2bn €1.3bn €0.5bn Plan Actual Plan Actual Plan Revised 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 9
    • 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 (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 10
    • Sanofi Boosted Sales of its Growth Platforms andSignificantly Reduced its Patent Cliff Exposure in 2011 Sales of Sales of Growth Platforms(1) & Genzyme Key Genericized Products(2) €21,703m €11,783m €7,565m €3,152m 2008 2009 2010 2011 2008 2009 2010 2011% of 42.7% % of 27.4% 65.0% 9.4%Total Total (1) 2010 include sales of Merial. In 2008 and 2009, Merial Joint Venture sales were not consolidated by Sanofi (2) 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 11 under appeal by Sun.
    • Growth Platforms Are on Track to Deliver SustainableGrowth Beyond the Patent Cliff Emerging Diabetes Human Markets(1) Solutions Vaccines €10,133m €6,540m €4,684m €3,469m CAGR €2,861m +15.7% €3,071m CAGR CAGR +15.1% +6.6% 2008 2011 2008 2011 2008 2011 Consumer Animal Innovative Health Care Health(2) Products(3) €2,666m €1,786m €2,030m €1,203m CAGR CAGR €449m +30.4% +4.4% 2008 2011 2008 2011 2008 2011 (1) Including €347m from Genzyme in 2011 (2) Merial Joint Venture sales were not consolidated by Sanofi in 2008 (3) Multaq® and Jevtana® 12
    • Geographic Sales Split Balanced in 2011 (2) United Western Emerging ROW (1) States Europe Markets €9,957m €9,130m €10,133m €4,169m +6.8% at CER -4.0% at CER +10.1% at CER +13.8% at CER 12.5% 29.8% 30.3% 27.3% Note: Sales growth 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 13 (2) Japan, Canada, Australia and New Zealand
    • 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 14
    • Sanofi Increases Shareholder Returns Evolution of Dividend ● Proposed dividend(1) of €2.65 per share for 2011 results Payout Payout 50% ● Progressive increase of Payout 40% payout target to 50% for 35% 2013 results(2) €2.65 €2.50 €2.40 +6% ● Over €1bn of shares €2.20 repurchased during 2011 ● Opportunistic share repurchase program during 2012 2008 2009 2010 2011 2013e (1) To be submitted for approval by the Shareholders’ Annual General Meeting on May 4, 2012 (2) Dividend to be paid in 2014 15
    • FINANCIAL PERFORMANCEJérôme ContamineExecutive Vice President, Chief Financial Officer 16
    • Genzyme and Growth Platforms Overcome Loss ofBlockbusters in 2011 FY 2011 Sales (€m) -€704m €33,389m +€2,569m€32,367m -€2,206m +€1,943m -€452m -€128m (3) FY 2010 Key A/H1N1 Others Growth Genzyme FX Impact FY 2011 (2) Genericized Platforms 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 (3) Consolidated since April 1st, 2011 17
    • The US$ Remained our Biggest Currency in 2011 2011 Currency Sales Exposure Euro € 29.6% U.S. $ 28.2% € / U.S. $ sensitivity Japanese ¥ 8.4% estimated at 0.3% Brazilian Real 4.4% of 2012 EPS growth Chinese Yuan 3.1% for a 1-cent movement Australian $ 2.3% Russian Ruble 2.2% in the exchange rate British £ 2.0% Canadian $ 1.6% 18
    • Sales and Business EPS Up +9.2% at CER in Q4 2011€m Q4 2011 Q4 2010 % Change % Change (reported €) (CER)Net sales 8,508 7,823 +8.8% +9.2%Other revenues 415 419 -1.0% -1.9%Gross profit 6,202 5,770 +7.5% +7.3%Business operating income 2,828 2,540 +11.3% +10.0%Business net income 2,077 1,838 +13.0% +11.7%Business EPS €1.56 €1.41 +10.6% +9.2% CER: Constant Exchange Rates 19
    • FY 2011 P&L Reflects Genzyme Consolidationand Shift in Business Mix€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 20
    • Cost of Sales of 31.2% in 2011 In-Line with Guidance Cost of Sales (%) ● Higher Cost of Sales in 2011 28.8% 31.2% vs. 2010 as anticipated due to: 31.6% 32.0% ● Loss of sales of €2,206m from key genericized products with relatively low Cost of Sales ● Lack of A/H1N1 sales ● Productivity improvements ● Decrease of CoGS ratio excluding key genericized products and A/H1N1(1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 (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. 21
    • Tight Control over R&D Expenditures in 2011 R&D/Sales Ratio (%) ● 2011 R&D expenses of €4,811m, 14.1% 14.4% up 7.4% at CER 14.9% 15.2% ● Addition of €419m of R&D expenses from Genzyme ● R&D/Sales ratio slightly up vs. 2010 to 14.4% ● R&D expenses down 2.4% at CER excluding Genzyme reflecting transforming initiatives Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 22
    • SG&A Expenses Excluding Genzyme Declined in 2011 SG&A/Sales Ratio (%) ● 2011 SG&A expenses of €8,536m, 25.2% 25.6% up +6.7% at CER 28.1% ● SG&A expenses down 2.6% when 26.1% excluding Genzyme ● SG&A/Sales ratio only slightly up in 2011 vs. last year reflecting: ● Lower ratio of Selling & Marketing Expenses to Sales ratio ● Genzyme consolidation ● Lower SG&A ratio in Q4 reflecting Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 tight control of SG&A expense and 2010 2011 start of Genzyme synergies 23
    • 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 - - CER: Constant Exchange Rates BNI: Business Net Income 24
    • From Business Net Income to Consolidated Net Income €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) Fair value remeasurement of contingent consideration liabilities 15 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) Discontinuation of depreciation of PP&E (IFRS5) 77 Tax effect on the items listed above & 2,482 1,856 other tax items Share of items listed above attributable to 6 3 non-controlling interests Restructuring costs and expenses arising from the impact of (32) (58) acquisitions on associates and Merial Net income attributable to equity holders of Sanofi 5,693 5,467 +4.1% 25
    • Strong Free Cash Flow Generated in 2011 In €m -1,644 ● Continued strong Free Cash Flow of €8,358m + €2,016m +10,002 ● Stable operating cash flow FCF of €10,478m 8,358 ● CapEx limited to €1,644m -1,577 -14,217 despite inclusion of CapEx from Genzyme and Merial ● Net debt below 1X EBITDA -10,859 ● Reasonable leverage -2,446 ● Low average cost of gross debt of 2.6% in 2011 -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 26
    • New Initiatives Combined with Genzyme Synergiesto Generate Incremental Cost Savings of €2bn by 2015 CoGS: Increase productivity through Total Cost Ownership and LEAN approaches R&D: Restructure footprint and variabilize costs(1) Cost Commercial Operations: savings Optimize field forces and marketing spend of Support Functions: Leverage shared services model €2bn (2) Genzyme: Simplify organization and leverage Sanofi infrastructure (1) 2011 R&D expenses on a proforma basis should reach around €5bn (2) At CER, before inflation and tax on a constant structure basis 27
    • BUSINESS PERFORMANCEHanspeter SpekPresident, Global Operations 28
    • Growth Platforms & Genzyme Lead to Sales Growthin 2011 despite Generic Competition 2011 Sales Change (€m)Growth Platforms(1) Key Genericized Products(2) + €1,943m Taxotere® U.S. & Western EU: - €1,066mEmerging Markets: + €962m(3) Lovenox® U.S.: - €781mDiabetes Solutions: + €516m Ambien® U.S.: - €357mCHC: + €505m Group Sales Plavix® Western EU: - €180m Allegra® U.S.: - €144mVaccines w/o A/H1N1(4): + €242m €33,389m Xyzal® U.S.: - €114mInnovative Products: +€208m +5.3% at CER Others(2): - €240mAnimal Health: + €85m Total - €2,882m + €2,569m(5) Eloxatin® U.S.: + €676m(6)Total + €4,512m Total - €2,206m (1) Growth platforms: Emerging Markets, Diabetes Solutions, Vaccines excluding A/H1N1, CHC, Innovative Products (Multaq® and Jevtana®), Animal Health (2) Other key genericized products include Aprovel® in Western EU, Nasacort® and Xatral® in the U.S. (3) Incremental quarterly sales contribution from Emerging Markets excluding other Growth Platforms and Genzyme was €148m (4) A/H1N1 vaccine sales were €452m in 2010 (5) Genzyme 2011 sales at 2010 exchange rates (6) Eloxatin® U.S. market exclusivity expected through August 9, 2012 29
    • Growth Platforms Delivered Double-Digit Sales Growthin 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 in 2011 (3) 2011 Vaccines sales decreased by -5.5% at CER when including €452m of A/H1N1 vaccine sales in 2010 (4) Multaq® and Jevtana® 30
    • Patent Cliff Declined Further in Q4 2011 despite Recoveryof U.S. Eloxatin® SalesKey Genericized Products(1)Quarterly Sales (€m) €1,072m €945m €773m €744m €690m Eloxatin® U.S.: €260m(2) Aprovel® EU Lovenox® U.S. €430m Plavix® EU Others Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011% of Total Sales 13.7% 12.1% 9.3% 8.5% 8.1% (1) Key genericized products include 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. 31 (2) Eloxatin® U.S. market exclusivity expected through August 9, 2012.
    • Emerging Markets Grew at Double-Digit Organic Ratein 2011 ● Record Emerging Markets(1) Emerging Markets Sales sales of €10,133m in 2011 €10.1bn ● +10.1% at CER +16% ● +10.4% excluding Genzyme and A/H1N1 sales(2) +9% ● 30.3% of Group sales ● Strong sales in BRIC of €3,467m €5.0bn ● +14.9% at CER ● +19.8% excluding Genzyme and A/H1N1 sales(2) 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 (2) Growth is at CER. Merial sales consolidated from 2010 (€1,983m in 2010). A/H1N1 sales in Emerging Markets were €361m in 2010. Genzyme 32 sales in Emerging Markets were €347m in 2011.
    • Acceleration in Emerging Markets in Q4 2011 Driven byStrong Performance in LatAm and Asia ● Q4 2011 Emerging Markets(1) sales of €2,649m ● Growth of +13.8% at CER without Genzyme or +18.7% at CER with Genzyme(2) Emerging Markets Q4 2011 Sales Split(3) +21.0% €827m +4.9% +15.6% €667m €634m +9.8% Q4 2011 Growth Rates at CER without Genzyme €476m BRIC (Brazil, Russia, India, China) +20.2% Other Emerging Markets +10.6% Latin Eastern Asia Africa & America Europe & Middle East Turkey (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 (2) Genzyme sales in Emerging Markets were €115m in Q4 2011 (3) Growth at CER excluding A/H1N1 vaccines and Genzyme 33
    • Diabetes Shows Impressive Double Digit Sales Growthin all Four Quarters of 2011 ● Strong performance of Diabetes with 2011 sales of €4,684m, up Quarterly Sales (€m)(1) +12.0% at CER €1,054m ● Lantus® 2011 sales of €3,916m, +15.0% at CER ● Lantus® quarterly sales >€1bn for the +17.8% first time +14.5% +14.6% ● Growth of +16.7% in the U.S. related +13.2% to increased market penetration of SoloSTAR® (50%) ● Strong Emerging Markets sales up +30.7% ● Nordic study confirms Sanofi’s confidence in the safety of Lantus® Q1 2011 Q2 2011 Q3 2011 Q4 2011 (1) Growth at CER (Constant Exchange Rate) 34
    • Robust CHC Growth Boosted by Allegra® Launch in 2011 ● Record 2011 CHC sales of Annual Sales (€m) €2,666m, +22.8%(1) at CER €2,666m ● Sanofi now among Top 5 OTC companies globally(2) €2,217m ● Allegra®: most successful OTC launch in the U.S. in 2011 with €1,430m sales of €211m +22.8% €1,203m at CER ● #2 brand in the category(3) ● #1 OTC brand for Sanofi globally ● Investing in the dynamic CHC market in China (BMP Sunstone) and India (Universal Medicare) FY 2008 FY 2009 FY 2010 FY 2011 (1) Growth at constant perimeter and exchange rate for FY 2011: +14.1% (2) Internal estimate based on Nicholas Hall dB6 OTC database (3) A.C. Nielsen Food, Drug and Mass excluding Walmart (represents 64% of all outlets) 13-week period ending December 24, 2011 35
    • Becoming a Significant Regional Player in Generics ● Solid 2011 sales of €1,746m, Annual Sales (€m) up +16.2%(1) at CER €1,746m Others ● Strong Q4: €488m, +21.0% at CER €1,534m ● AGx of Lovenox® available in the U.S. market Emerging €1,012m Markets ● Over €1bn of sales in Emerging Markets in 2011 (62.5% of Gx sales) ● +14.0% in Emerging Markets Western ● Roll-out of Medley in LatAm Europe U.S. 2009 2010 2011 (1) Gx organic growth is +14.6% in FY 2011 36
    • Merial Showed Strong Resilience in 2011 despiteCompetitive Challenges 2011 Sales Split by Region ● 2011 sales of €2,030m, up +4.3% Other at CER Countries ● Companion Animals segment sales of €1,277m, +1.8% despite temporary 8% U.S. generic competitor of Frontline® Plus(1) and new U.S. competitor Emerging ● Solid Production Animals segment Markets 25% 40% U.S. sales of €753m, +8.9% at CER ● Acceleration of Emerging Markets sales up +12.4% at CER to €507m ● Rebound in Q4 with sales of €470m, up +10.0% at CER ● Recovery of Frontline® Plus(1) 27% ● Increased uptake of Certifect® in the U.S. Western Europe (1) Positive U.S. court ruling barring further sales of Cipla and Velcera’s generics and ordering seizure of U.S. inventory in possession of generic makers on August 21, 2011 37
    • Vaccine Sales Driven by Growth in Emerging Marketsand Sustained Performance in Mature Markets in 2011 FY 2011 Sales -5.5% ● FY 2011 sales: €3,469m, +7.2% €3,808m including excluding A/H1N1(1) A/H1N1 €3,469m ● Record year for flu (€826m, +2.5%) +7.2% supported by differentiation strategy excluding ● Emerging Markets up +10.7% A/H1N1 excluding A/H1N1 ● Solid Q4 excluding influenza ● Strong Pentaxim® in Emerging Markets and Adacel® globally ● Menactra® (€93m, +43.2%) driven by booster recommendations in U.S. and global launches ● Q4 flu sales reflect early shipments of Fluzone® in the U.S. 2010 2011 Pandemic Adult Boosters Other Seasonal Influenza Travel/Endemic Polio/Pertussis/Hib Meningitis/Pneumo (1) FY 2011 sales down -5.5% including A/H1N1 38
    • Genzyme Recovery On Track ● FY 2011 Genzyme consolidated Quarterly Sales(1) (€m) sales reached €2,395m, +7.7%(1,2) €831m €796m ● Q4 2011 sales of €831m, +0.8%(2) €768m ● Rare Diseases sales of €346m & • Solid performance of Myozyme®/ Other Lumizyme® of €108m, +15.9% s • Cerezyme® and Fabrazyme® sales constrained by supply & ● Good performance of Renagel®/ Renvela® and Synvisc® franchise ● EMA and FDA approvals granted Others for Framingham plant in Jan 2012 ● Complete return to normal supply levels of Fabrazyme® to begin in Q2 2012 Q2 2011 Q3 2011 Q4 2011 (1) Genzyme sales are consolidated since April 1, 2011 (2) Change on a constant structure basis and at constant exchange rates 39
    • R&D UPDATEDr. Elias ZerhouniPresident, Global Research & Development 40
    • Executing our R&D Strategy An efficient global R&D organization Maximize synergies and convergence around Hub model Exploit economies of scale Improve R&D cost structure Focus on high-value projects Global Execute on late-stage projects R&D Medical value and translational feasibility to guide early-stage Goals portfolio prioritization Establish new models of external innovation Enhance the value of external opportunities and partnerships Create open and creative model of pharma-biotech partnership e.g. Warp Drive Bio 41
    • Focusing on Delivering a Promising Development Portfolio Achieve Regulatory Milestones Submitted • Lemtrada™ Short-term • Aubagio™  EU/U.S. opportunities • Lyxumia® (1)  EU • Zaltrap® (2)  EU/U.S. • Visamerin®  EU/U.S. • Kynamro™ (3)  EU Fastrack Next Wave of Late-Stage Projects • New glargine formulation • Otamixaban Mid-term • Glargine-lixisenatide combo • Sarilumab opportunities • Dengue vaccine • JAK-2 inhibitor • Eliglustat • Iniparib • Anti-PCSK-9 mAb • Ombrabulin Lemtrada™, Aubagio™, Lyxumia®, Zaltrap®, Visamerin® and Kynamro™ are registered trade names submitted to health authorities for investigational agents (1) In-licensed from Zealand Pharma A/S (2) Partnership with Regeneron 42 (3) In-licensed from Isis Pharmaceuticals
    • Genzyme - MSEmergence of a Franchise Addressing the Full Spectrumof Patient Needs in Multiple Sclerosis RRMS(2) and RMS(3) severe/ Early MS/CIS(1) early active MS highly active Unmet need 1 Unmet need 2 Unmet need 3 Convenience Convenience Efficacy with & safety & efficacy manageable safety Aubagio™ Aubagio® Rebif® Lemtrada™ Lemtrada™ CIS – Clinically Isolated Syndrome, TOPIC Phase III study presently ongoing RRMS – Relapse Remitting Multiple Sclerosis RMS – Relapsing Multiple Sclerosis 43 43
    • Genzyme - MS A Unique Value Proposition: Superior Efficacy with Convenient Annual Dosing CARE-MS I CARE-MS II ● Superior efficacy demonstrated in Phase III vs. Rebif® Patients 581 840 ● Manageable safety: Study Duration 2 years 2 years ● Well-characterized and consistent Patient Treatment Relapsed on across studies Population naïve prior treatment ● Effective risk management Treatment Alemtuzumab Alemtuzumab procedures in place Arms vs. IFNβ 1a vs. IFNβ 1a ● FDA Fast Track designation Relapse Rate Reduction 55% 49% granted at 2 Years(1) (p<0.0001) (p<0.0001) Sustained Accumulation of Disability Reduction in 30% 42% 6 Months(1) (ns) (p=0.0084) (1) Co-primary endpoints in CARE-MS I and CARE-MS II 44
    • Genzyme - MSAubagi A Once-Daily Oral Therapy with Comparable Efficacy to Injectable Interferon TEMSO: Reduction in Adjusted(1) ARR ● Efficacy demonstrated in TEMSO Placebo on both Relapse Rate and Disability Progression at 14mg T. 7 mg RRR: 31.2% p=0.0002 ● No superiority vs. Rebif® in RRR: 31.5% T. 14 mg TENERE but lower rate of TEAE- p=0.0005 related discontinuation 0 0,1 0,2 0,3 0,4 0,5 0,6 ● Manageable safety with up to 10 TEMSO: Reduction in Disability Progression (%) years of follow-up 30% Placebo T. 7 mg HRR: 23.7% T. 14 mg p=ns 20% HRR: 29.8% 10% p=0.0279 0% 0 12 24 36 48 60 72 84 96 108 Week (1) Adjusted for Expanded Disability Status Scale score strata at baseline and takes duration of treatment into account. TEAE – Treatment Emergent Adverse Events, 45 ARR – Annualized Relapse Rate, RRR – Relative risk reduction, HRR – Hazard ratio reduction
    • Diabetes ® A GLP-1 Agonist with Unique Post-Prandial Effect and One Step Titration Reported Lyxumia® Profile Mono  Drug naïve patients  Consistent GLP-1 class effects Mono Japan of A1c reduction and weight loss F1 (metformin)  S (sulfonylurea)   Pronounced effect on Placebo-controlled M (metformin)  post-prandial glucose in OAD failure P (pioglitazone)   Favorable safety profile with low M Asia (metformin) risk of hypoglycemic events Active-controlled X vs. exenatide   OD injection, simple 1 step L Asia Placebo-controlled on to maintenance dose, 1 pen top of basal insulin L  per dose Duo 1 (Lantus®)  Placebo-controlled Cardiovascular Ongoing Secondary prevention Outcomes Study Lixisenatide was in-licensed from Zealand Pharma A/S. Lyxumia® is the intended trademark for lixisenatide. Lixisenatide is currently not approved or licensed anywhere in the world. 46
    • Diabetes ® Optimal Complementary Pharmacological Profile with Basal Insulins T2D Patients Treated with Basal Insulin(1) (worldwide) ● 3 positive GetGoal trials with Lyxumia® on top of basal insulin On basal insulin On basal insulin with controlled fasting ● A1c target and PPG control glucose control achieved when used on top of but A1c >7% Lantus® in GetGoal-Duo 1(3) ● Development of injection device 4 million on Lantus® for variable Lantus® dose with fixed Lyxumia® dose on track 4 million for Phase III initiation early 4 million 2013 on other basal insulins(2) T2D – Type 2 Diabetes, A1C – Glycated hemoglobin, PPG – Post Prandial Glucose (1) Adapted from IMS data (2) Includes all types of basal insulins 47 (3) Top line results press release (6 Dec 2011) – Full results expected at a forthcoming scientific meeting
    • DiabetesNew Glargine Formulation with Unique Pharmacokinetics ● New glargine formulation New Insulin Glargine Formulation Depot formation after subcutaneous injection provides ● Unique flat PK/PD profile Lantus® New Glargine ● Lower injection volume Formulation ● Phase III trials recently initiated in T2D high dose insulin users ● Targeting ~1,600 patients Schematic illustration PK/PD: Pharmacokinetic/pharmacodynamic T2D: Type 2 Diabetes 48
    • OncologyStrenghtening our Portfolio of Oncology Drugs Zaltrap® aflibercept● A novel VEGF trap acting on ● Only ultra-LMWH effective in multiple angiogenic targets reducing VTE risk reduction in chemo-treated cancer patients● Previously treated metastatic colorectal cancer ● Without impact on major bleeding incidence ● VELOUR: Significant improvement in Overall Survival ● Treatment effect consistent across solid tumor types, stages ● Manageable safety profile and geographical regions consistent with previous studies NSCLC – Non Small Cell Lung Cancer VTE – Venous Thrombo Embolism (includes Deep Venous Thrombosis and Pulmonary Embolism) 49
    • Genzyme - Rare DiseasesKynamro™: Targeting Rare FamilialHypercholesterolemias Understanding Rarity ● Four Phase III trials conducted in severe FH forms ~40,000 patients(1) ● Significant reduction in LDL-C when HoFH Severe FH added to a regimen of maximally tolerated statin dose and other lipid lowering therapies ● Liver fat stabilized or decreased in some patients with treatment beyond 12 months On statins: ● Sustained reduction in apo B 60 million production decreased LDL patients and Lp(a) HeFH: 1 million patients (1) Patients for hoFH and Severe FH in US and EU markets hoFH – Homozygous Familial Hypercholesterolemia Severe FH – Severe Familial Hypercholesterolemia = treated LDL-C CHD – Coronary Heart Disease 50 heFH – Heterozygous familial hypercholesterolemia
    • Metabolic DisordersPCSK9 mAb: a First in Class Addressing Unmet Needsin Hypercholesterolemias LDL-C Dose Response (Phase Ib) ● Landmark study demonstrated that Atorvastatin Combo-Rx, heFH & Non-FH Combined when PCSK9 is disabled, cholesterol and risk of CHD are Mean Percent Change from Baseline in Calculated LDL-C (%) greatly lowered(1) ● Preliminary Phase II data ● >65% LDL-C reduction in FH and primary hypercholesterolemia on top of baseline statin use ● Generally safe and well tolerated ● Phase III targeted to start Q2 2012 Placebo 50 mg 100 mg 150 mg = Dose administered G. Swergold et al. Circulation 2011; 124: A16265 CHD – Coronary Heart Disease, heFH – Heterozygous familial hypercholesterolemia , ACC – American College of Cardiology (1) Cohen JC. N Engl J Med 2006;354(12):1264-72 51
    • ThrombosisOtamixaban: Providing Superior Outcomes whileSimplifying Treatment during Interventional Procedures TAO Study ● Despite current therapies, death, MI, and readmission rates remain high Moderate-to-high risk NSTE-ACS with planned early invasive strategy (n=13,220) ● Otamixaban is the first IV direct and selective factor Xa inhibitor with R quick onset/offset ● 27 to 42% risk reduction in ACS Otamixaban Otamixaban UFH + complications including death and Regimen 1 Regimen 2 Eptifibatide MI in Phase Il(1) (n=1,969) (n=1,969) (n=1,969) ● Phase III TAO study ongoing and Sponsor-blinded expected to complete by end 2012 interim analysis Primary endpoint: Death/Myocardial Infarction @ day 7 (1) The Lancet, Volume 374, Issue 9692, Pages 762 - 764, 5 September 2009 NSTE-ACS – Non-ST-Elevation Acute Coronary Syndrome, MI – Myocardial Infarction, UFH – Unfractionated Heparin 52
    • Genzyme - Rare DiseasesEliglustat: a Novel Oral Therapy in Gaucher Disease(1) ● Potent, novel substrate inhibitor ● Convenience of oral therapy ● Eliminating challenges of infusing patients ● Clinical profile expected to be similar to Cerezyme® ● 4-year Phase II data at WORLD congress in February 2012 December 2006 December 2009 ● Phase III trials fully recruited pre-treatment (18 years) 3 years post treatment (21 years)(2) (1) Investigational drug (2) Patient from Phase II clinical trial 53 WORLD – World Organization of Research on Lysosomal Diseases
    • VaccinesDengue Vaccine: Addressing a Growing Global Threat Significant Disease Burden Ambitious R&D Program ● Estimated 220m dengue ● Global Phase III program infections worldwide per year (43,000 individuals) ● 2m cases of Hemorrhagic ● 1st efficacy results expected Fever by end of 2012 ● >500,000 hospitalizations and ● First submissions planned >20,000 deaths / year in 2013 ● Dengue: a public health priority in Asia and Latin America 54 54
    • Eighteen Potential New Launches over 2012-2015 Cumulative Number of Projects Pharmaceuticals (excluding LCM) and Vaccines 18 14 8 Vaccines Rare Diseases & MS 5 Ophthalmology Diabetes Oncology Dengue vaccine Other Pharma Aubagio™ (teriflunomide) eliglustat Quadracel® Kynamro™ (mipomersen) SAR302503 DTP-HepB- Lemtrada™ (JAK-2 inhibitor) Lyxumia ® Polio-Hib (lixisenatide) (alemtuzumab) ombrabulin ® FOV1101 Zaltrap Fluzone® QIV IM (prednisporin) (aflibercept) iniparib Visamerin® Hexaxim® otamixaban SAR236553 (semuloparin) anti-PCSK-9 mAb 2012 2013 2014 2015 Note: Scope includes pharmaceuticals NMEs (excluding LCM – Life cycle management) and vaccines. Only first launches in a given market are mentioned. 55
    • Multiple Important Catalysts in 2012 2012 Expected Regulatory Submissions Q1 Q2 Q3 Q4 ● Kynamro™ (mipomersen) in hoFH in the U.S.  ● Lemtrada™ (alemtuzumab) in RMS in the U.S. and EU  ● Lyxumia® (lixisenatide) in Type 2 diabetes in the U.S.  Expected Headline Data Releases ● Zaltrap® (aflibercept) - Phase III results in 1st line prostate cancer (VENICE)  ● Aubagio™ (teriflunomide) - Phase III results in RMS (TOWER)  ● Lantus® - Phase III results in reduction in CV morbidity & mortality (ORIGIN)  ● Otamixaban - Phase III study completion in ACS  Expected Phase III Study Initiations ● New insulin glargine formulation - Phase III in diabetes (EDITION) ● Anti-PCSK-9 mAb - Phase III trials in hypercholesterolemia  ® hoFH – Homozygous Familial Hypercholesterolemia Zaltrap , Lemtrada™, Aubagio™ and Kynamro™ are m-CRC – Metastatic Colorectal Cancer registered trade names submitted to health authorities for RMS – Relapsing forms of Multiple Sclerosis investigational agents 56
    • CONCLUSIONChristopher A. ViehbacherChief Executive Officer 57
    • 2012 Is a Transition Year for Sanofi Tailwinds Headwinds ● Performance of our growth ● Expected U.S. generic competition platforms for Avapro®, Plavix® and Eloxatin®(1) ● Benefit of Genzyme consolidation for one additional quarter ● Full-year impact of Taxotere® (Q1 2012) generic ● Continued discipline on costs ● U.S. launch of 2nd enoxaparin generic ● Copaxone® agreement terminating in early Q1 2012 (1) Avapro® U.S. patent expiry on March 30, 2012, Plavix® U.S. paediatric exclusivity expiry in May 17, 2012 and Eloxatin® loss of exclusivity expected on August 9, 2012 58
    • 2012 Will Be a Turning Point towards Sustainable Growth EPS Guidance for FY 2012 ● As announced last September, the loss of Plavix® and Avapro® exclusivity in the U.S. is anticipated to impact the 2012 business net (1) income by around €1.4 billion at CER ● Taking into account this impact, the performance of growth platforms, contribution from Genzyme and cost control as well as other generic competition should lead to a 2012 business EPS 12% to 15% lower than 2011 at CER, barring major unforeseen adverse events(2,3) (1) Avapro® U.S. patent expiry on March 30, 2012, Plavix® U.S. paediatric exclusivity expiry in May 17, 2012 (2) Growth is at CER (Constant Exchange Rates) (3) FY 2011 Business EPS: €6.65 59
    • Continued Execution of Strategy Expected to DeliverSustainable Growth 2012-2015 2012-2015 Sales CAGR At least 5% Diversified sources of growth  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 (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 60 (4) Dividend paid in 2014
    • Q&A SESSION 61
    • APPENDICESR&D Pipeline 62
    • Late Stage Pipeline – Pharma & Vaccines Phase III Registration iniparib N G MACI® Quadracel® Hexaxim® (BSI-201) Cell-based treatment Diphtheria, tetanus, pertussis DTP-HepB-Polio-Hib vaccine squamous NSCLC Articular cartilage defects & polio vaccine; 4-6 y of age aflibercept otamixaban N Fluzone® & VaxiGrip® QIV IM Plavix® VEGF-Trap Direct Xa inhibitor Quadrivalent inactivated clopidogrel bisulfate 1st line AIPC ACS influenza vaccines PAD, STEMI, Japan ombrabulin (AV88E8062) N Lantus® Dengue semuloparin (AVE5026) N Vascular disrupting agent insulin glargine Mild-to-severe Indirect Xa/IIa inhibitor Sarcoma ORIGIN* dengue fever vaccine VTE prevention in cancer patients G Clolar® / Evoltra® lixisenatide (AVE0010) teriflunomide N DTP-HepB-Polio-Hib Purine nucleoside analog GLP-1 agonist Relapsing forms of multiple sclerosis Pediatric hexavalent vaccine Adult acute myeloid leukemia (AML) Type 2 diabetes (RMS) – monotherapy, U.S. / EU SAR302503 (TG101348) N New formulation Allegra® G mipomersen N JAK-2 inhibitor Insulin glargine fexofenadine Apolipoprotein B-100 antisense Myelofibrosis Type 1+2 diabetes Dry syrup, Japan hoFH and severe heFH, EU teriflunomide G mipomersen sarilumab (SAR153191) N lixisenatide (AVE0010) N Multiple sclerosis Apolipoprotein B-100 antisense Anti-IL-6R mAb GLP-1 agonist (monotherapy, adjunct therapy & CIS) hoFH (U.S.) RA Type 2 diabetes, EU G alemtuzumab G eliglustat tartrate N Lantus® Anti-CD52 mAb Glucosylceramide synthetase inhibitor insulin glargine Multiple sclerosis Gaucher disease Pediatric, EU aflibercept N VEGF-Trap 2nd line mCRC, U.S. / EU G Genzyme Oncology Thrombosis Vaccines Metabolic Disorders Central Nervous System Internal Medicine N New Molecular Entity Genetic diseases Biosurgery * ORIGIN: Evaluation of Lantus® in reducing cardiovascular morbidity & mortality 63
    • Early Stage Pipeline – Pharma & Vaccines Phase II iniparib N N FOV1101 SAR113945 (BSI-201) FDC prednisolone/ cyclosporine IKK-β inhibitor Ovarian cancer, non-squamous NSCLC, Allergic conjunctivitis Osteoarthritis neoadjuvant breast cancer SAR3419 N safotibant (FOV2304) N SAR231893 N Maytansin-loaded anti-CD19 mAb Bradykinin B1 antagonist Anti-IL4 mAb B-cell malignancies (DLBCL, ALL) Diabetic macular edema Asthma; Atopic dermatitis SAR256212 (MM-121) N SAR164877 N ferroquine N Anti-NGF mAb anti-ErbB3 mAb Antimalarial Pain Breast cancer, NSCLC (on clinical hold) Malaria SAR245408 (XL147) N SAR110894 N G fresolimumab N Oral PI3K inhibitor H3 antagonist TGFβ antagonist Endometrial cancer, Breast cancer Alzheimers disease Fibrosis SAR245409 (XL765) N ACAM-Cdiff SAR97276 N Oral dual inhibitor of PI3K & mTOR Clostridium difficile Antimalarial Breast cancer, NHL Toxoid vaccine Malaria ombrabulin (AVE8062) SAR279356 (F598) N Rabies VRVg Vascular disrupting agent Anti-PNAG mAb Purified vero rabies vaccine Ovarian 2nd line, NSCLC 1st line Serious infections SAR302503 (TG101348) Meninge ACYW conj. SAR236553 (REGN727) N JAK-2 inhibitor 2 generation meningococcal nd Anti-PCSK-9 mAb Polycythemia vera Conjugate infant vaccine Hypercholesterolemia G Genzyme Oncology Ophthalmology Vaccines N New Molecular Entity Metabolic Disorders Central Nervous System Internal Medicine 64
    • Early Stage Pipeline – Pharma & Vaccines Phase I SAR153192 N G Genz644282 N G N Rotavirus Gene therapy (AAV-AADC) Anti-DLL4 mAb Topoisomerase-1 inhibitor Live Attenuated Tetravalent Parkinsons disease Solid tumors Solid tumors Rotavirus oral vaccine SAR256212 (MM-121) G Mozobil® (plerixafor) G N Acid sphingomyelinase Streptococcus pneumonia anti-ErbB3 mAb CXCR4 Antagonist Niemann-Pick type B Meningitis & pneumonia vaccine Ovarian cancer AML SAR650984 N G GC1008 N SAR339658 N Pseudomonas aeruginosa Anti-CD38 naked mAb Anti-TGFβ mAb VLA 2 antagonist Antibody fragment product Hematological malignancies Solid tumors Inflammatory Bowel disease Prevention of ventilator-associated pneumonia SAR302503 (TG101348) G Oral clofaribine SAR292833 (GRC15300) N Tuberculosis JAK-2 inhibitor Purine nucleoside analog TRPV3 antagonist Recombinant subunit vaccine Incyte resistant MF Myelodysplastic syndrome Neuropathic pain, osteoarthritic pain SAR566658 N SAR407899 N SAR100842 N RetinoStat® N Maytansin-loaded anti-DS6 Rho kinase inhibitor LPA-1/LPA-3 Gene therapy DS6 positive solid tumors Diabetic nephropathy Skin manifestation of scleroderma Wet age-related macular degeneration (AMD) SAR307746 (REGN910) N lixisenatide + Lantus® SAR156597 N StarGen® N Anti-Ang2 mAb GLP-1 agonist + insulin glargine IL4/IL13 Bi-specific mAb Gene therapy Solid tumors Single pen device / Type 2 diabetes Idiopathic Pulmonary Fibrosis Stargardt disease SAR125844 N SAR164653 N SAR114137 N G Gene therapy (sFLT-01) N Cathepsin A inhibitor Met kinase inhibitor Cathepsin S/K inhibitor Age related Macular Degeneration CV-related complications & deaths in diabetic Solid tumors patients OA pain & Peripheral neuropathic pain (AMD) Combinations SAR126119 N SAR411298 N SAR245408 / MSC1936369B TAFIa inhibitor FAAH inhibitor SAR245409 / MSC1936369B Acute ischemic stroke Cancer pain G Genzyme Oncology Genetic diseases Vaccines Metabolic Disorders Internal Medicine Ophthalmology N New Molecular Entity Thrombosis Central Nervous System 65
    • R&D Pipeline Summary TableNew Molecular Entities (NMEs) and Vaccines Phase I Phase II Phase III Registration TOTAL Oncology 7 4 3 1 15 Metabolic Disorders 2 1 0 2 5 Thrombosis 1 0 1 1 3 Central Nervous System 2 2 0 1 5 47 Internal Medicine 4 6 1 0 11 Ophthalmology 3 2 0 0 5 Genetic Diseases 2 0 1 0 3 Vaccines 4 3 5 1 13 TOTAL 25 18 11 6 60 43 17 NMEs & Vaccines 66
    • Expected R&D Milestones - Pharmaceuticals Product Event Timing Status New insulin glargine formulation Start of Phase III program in diabetes (EDITION) Q1 2012 Zaltrap® Regulatory resubmission in 2nd line mCRC in U.S. Q1 2012 AubagioTM Regulatory submission in MS in EU Q1 2012 KynamroTM Regulatory submission for hoFH in U.S. Q1 2012 LemtradaTM Regulatory submission in MS in EU and U.S. Q2 2012 Zaltrap® Phase III results in 1st line AIPC (VENICE) Q2 2012 anti-PCSK-9 mAb Initiation of Phase III program in hypercholesterolemia Q2 2012 ombrabulin Phase II results in 1st line NSCLC, 2nd line ovarian Q2/Q3 2012 67
    • Expected R&D Milestones – Pharmaceuticals Product Event Timing AubagioTM Expected approval in MS in U.S. Q3 2012 Visamerin® /Mulsevo® Expected approval in VTE prevention in cancer patients in U.S. and EU Q3 2012 KynamroTM Expected approval in hoFH and severe heFH in EU Q3 2012 Lantus® Phase III results in reduction in CV morbidity & mortality (ORIGIN) Q3 2012 ombrabulin Phase III results in sarcoma Q3 2012 Lyxumia® Expected approval in type 2 diabetes in EU Q4 2012 Lyxumia® Regulatory submission in type 2 diabetes in U.S. Q4 2012 Zaltrap® Expected approval in 2nd line mCRC in EU Q4 2012 otamixaban Phase III results in ACS Q4 2012 iniparib Phase II results in 2nd line ovarian platinum resistant cancer Q4 2012 68
    • Expected R&D Milestones - Vaccines Product Event Timing HexaximTM Scientific opinion issued by EMA Q2 2012 Fluzone® QIV IM File submission in U.S. Q3 2012 HexaximTM File submission in EU Q3 2012 Dengue vaccine First efficacy results Q4 2012 Fluzone® QIV ID Start of Phase III Q4 2012 Vaxigrip® QIV IM File submission Q1 2013 69
    • APPENDICESFINANCE 70
    • Business Net Income Statement Fourth quarter 2011 Pharmaceuticals Vaccines Animal Health Other Group Total € million % % % % Q4 2011 Q4 2010 Q4 2011 Q4 2010 Q4 2011 Q4 2010(1) Q4 2011 Q4 2010 Q4 2011 Q4 2010 change change change change Net sales 7,220 6,505 11.0% 818 890 (8.1%) 470 428 9.8% 8,508 7,823 8.8% Other revenues 400 408 (2.0%) 7 7 8 4 100.0% 415 419 (1.0%) Cost of sales (2,201) (1,942) 13.3% (352) (368) (4.3%) (168) (162) 3.7% (2,721) (2,472) 10.1% As % of net sales (30.5%) (29.9%) (43.1%) (41.3%) (35.7%) (37.9%) (32.0%) (31.6%) Gross profit 5,419 4,971 9.0% 473 529 (10.6%) 310 270 14.8% 6,202 5,770 7.5% As % of net sales 75.1% 76.4% 57.8% 59.4% 66.0% 63.1% 72.9% 73.8% Research and development expenses (1,107) (987) 12.2% (146) (139) 5.0% (40) (42) (4.8%) (1,293) (1,168) 10.7% As % of net sales (15.3%) (15.2%) (17.8%) (15.6%) (8.5%) (9.8%) (15.2%) (14.9%) Selling and general expenses (1,935) (1,882) 2.8% (138) (175) (21.1%) (148) (145) 2.1% (2,221) (2,202) 0.9% As % of net sales (26.8%) (28.9%) (16.9%) (19.7%) (31.4%) (33.9%) (26.1%) (28.1%) Other current operating income/expenses (54) (45) (1) 6 4 (6) (8) (13) (59) (58) Share of profit/loss of associates* 260 251 (4) 2 256 253 Net income attributable to non-controlling interests (55) (55) (2) (57) (55) Business operating income 2,528 2,253 12.2% 184 223 (17.5%) 124 77 61.0% (8) (13) 2,828 2,540 11.3% As % of net sales 35.0% 34.6% 22.5% 25.1% 26.4% 18.0% 33.2% 32.5% Financial income and expenses (113) (95) Income tax expense (638) (607) Tax rate** 25.4% 27.0% Business net income 2,077 1,838 13.0% As % of net sales 24.4% 23.5% Business earnings per share*** (in euros) 1.56 1.41 10.6% * 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 1,330 million in the fourth quarter of 2011 and 1,30498 million in the fourth quarter of 2010 (1) In 2010, the results of operations of the Merial business previously presented as "held-for-exchange" were reclassified and included in income from continuing operations in accordance with IFRS5 § 36, following the announcement to maintain Merial and Intervet/Schering-Plough as two 71 separate organizations.
    • Business Net Income Statement Full-year 2011 Pharmaceuticals Vaccines Animal Health Other Group Total€ million % % % % FY 2011 FY 2010 FY 2011 FY 2010 FY 2011 FY 2010 FY 2011 FY 2010 FY 2011 FY 2010 change change change change Net sales 27,890 26,576 4.9% 3,469 3,808 (8.9%) 2,030 1,983 2.4% 33,389 32,367 3.2% Other revenues 1,622 1,623 (0.1%) 25 28 (10.7%) 22 18 22.2% 1,669 1,669 Cost of sales (8,368) (7,316) 14.4% (1,404) (1,371) 2.4% (654) (615) 6.3% (10,426) (9,302) 12.1%As % of net sales (30.0%) (27.5%) (40.5%) (36.0%) (32.2%) (31.0%) (31.2%) (28.7%) Gross profit 21,144 20,883 1.2% 2,090 2,465 (15.2%) 1,398 1,386 0.9% 24,632 24,734 0.4%As % of net sales 75.8% 78.6% 60.2% 64.7% 68.9% 69.9% 73.8% 76.4% Research and development expenses (4,101) (3,884) 5.6% (564) (517) 9.1% (146) (155) (5.8%) (4,811) (4,556) 5.6%As % of net sales (14.7%) (14.6%) (16.3%) (13.6%) (7.2%) (7.8%) (14.4%) (14.1%) Selling and general expenses (7,376) (6,962) 5.9% (542) (603) (10.1%) (617) (604) 2.2% (1) (2) (8,536) (8,171) 4.5%As % of net sales (26.4%) (26.2%) (15.6%) (15.8%) (30.4%) (30.5%) (25.6%) (25.2%)Other current operatingincome/expenses (13) 177 14 (7) (6) 24 (108) 4 77 Share of profit/loss of associates* 1,088 1,009 1 19 13 8 1,102 1,036 Net income attributable to non-controlling interests (246) (258) 1 (1) (247) (257)Business operating income 10,496 10,965 (4.3%) 985 1,379 (28.6%) 627 621 1.0% 36 (102) 12,144 12,863 (5.6%)As % of net sales 37.6% 41.3% 28.4% 36.2% 30.9% 31.3% 36.4% 39.7%Financial income andexpenses (412) (362)Income tax expense (2,937) (3,286)Tax rate** 27.0% 28.0% Business net income 8,795 9,215 (4.6%)As % of net sales 26.3% 28.5% Business earnings per share*** (in euros) 6.65 7.06 (5.8%) * 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 1,321.7 million in 2011 and 1,305.3 million in 2010 (1) In 2010, the results of operations of the Merial business previously presented as "held-for-exchange" were reclassified and included in income from continuing operations in accordance with IFRS5 § 36, following the announcement to maintain Merial and Intervet/Schering-Plough as two 72 separate organizations.
    • Reconciliation of Business Net Income to ConsolidatedNet Income Attributable to Equity Holders of Sanofi € million Q4 2011 Q4 2010(1) % change Business net income 2,077 1,838 13.0% Amortization of intangible assets(2) (809) (848) Impairment of intangible assets (66) (154) Fair value remeasurement of contingent consideration liabilities (152) Expenses arising from the impact of acquisitions on inventories (72) (6) Restructuring costs (777) (892) Other gains and losses, and litigation(3) 190 (138) Discontinuation of depreciation of PP&E* (IFRS5) 0 19 Tax effect of: 476 653 amortization of intangible assets 265 265 impairment of intangible assets 15 50 fair value remeasurement of contingent consideration liabilities 24 expenses arising on the workdown of acquired inventories 23 1 restructuring costs 225 299 other gains and losses, and litigation (76) 46 discontinuation of depreciation of PP&E* (IFRS5) 0 (8) Other tax items(4) 577 Share of items listed above attributable to non-controlling interests 6 1 Restructuring costs of associates and joint ventures, and expenses arising from the (11) (36) impact of acquisitions on associates and joint ventures Net income attributable to equity holders of Sanofi 1,439 437 229.3% Consolidated earnings per share(5) (in euros) 1.08 0.33 227.3% (1)The results of operations of the Merial business previously presented as “held-for-exchange” were reclassified and included in income from continuing operations in accordance with IFRS5 §36, following the announcement to maintain Merial and Intervet/Schering Plough as two separate organizations. (2) Of which amortization expense generated by the remeasurement of intangible assets as part of business combinations: €769 million in the fourth quarter of 2011 and €795 million in the fourth quarter of 2010. (3) Of which €210 million of income related to the award received by Sanofi in reparation of damages on the Plavix® patent litigation. (4) Of which in 2011, related to Advance Price Agreement impact for €349 million and €228 million reflecting a decrease in deferred taxes liabilities linked to revaluation of intangible assets following legislation changes. (5) Based on an average number of shares outstanding of 1,330 million in the fourth quarter of 2011 and 1,304.9 in the fourth quarter of 2010. 73 * Property, Plant and Equipment.
    • Reconciliation of Business Net Income to ConsolidatedNet Income Attributable to Equity Holders of Sanofi € million FY 2011 FY 2010(1) % change Business net income 8,795 9,215 (4.6%) Amortization of intangible assets(2) (3,314) (3,529) Impairment of intangible assets (142) (433) Fair value remeasurement of contingent consideration liabilities 15 Expenses arising from the impact of acquisitions on inventories (476) (142) Restructuring costs (1,314) (1,384) Other gains and losses, and litigation(3) (327) (138) Discontinuation of depreciation of PP&E* (IFRS5) 77 Tax effect of: 1,905 1,856 amortization of intangible assets 1,178 1,183 impairment of intangible assets 37 143 fair value remeasurement of contingent consideration liabilities 34 expenses arising on the workdown of acquired inventories 143 44 restructuring costs 399 466 other gains and losses, and litigation 114 46 discontinuation of depreciation of PP&E* (IFRS5) (26) Other tax items(4) 577 Share of items listed above attributable to non-controlling interests 6 3 Restructuring costs of associates and joint ventures, and expenses arising from the (32) (58) impact of acquisitions on associates and joint ventures Net income attributable to equity holders of Sanofi 5,693 5,467 4.1% Consolidated earnings per share(5) (in euros) 4.31 4.19 2.9% (1) The results of operations of the Merial business previously presented as “held-for-exchange” were reclassified and included in income from continuing operations in accordance with IFRS5 §36, following the announcement to maintain Merial and Intervet/Schering Plough as two separate organizations. (2) Of which related to amortization expense generated by the remeasurement of intangible assets as part of business combinations: €3,136 million in 2011 and €3,327 million in 2010 (3) Of which in 2011: related to the “Catch up” in respect of 2009 and 2010 depreciation and amortization expense on PP&E* and intangible assets of Merial, previously classified as “Assets held for sale or exchange” (€519 million) and €210 million of income related to the award received by Sanofi in reparation of damages on the Plavix® patent litigation. (4) In 2011, related to Advance Price Agreement impact for €349 million and €228 million reflecting a decrease in deferred taxes liabilities linked to revaluation of intangible assets following legislation changes. (5) Based on an average number of shares outstanding of 1,321.7 million in 2011 and 1,305.3 in 2010. 74 * Property, Plant and Equipment.
    • Consolidated Income Statements € million Q4 2011 Q4 2010(1) FY 2011 FY 2010(1) Net sales 8,508 7,823 33,389 32,367 Other revenues 415 419 1,669 1,669 Cost of sales (2,793) (2,469) (10,902) (9,398) Gross profit 6,130 5,773 24,156 24,638 Research and development expenses (1,293) (1,167) (4,811) (4,547) Selling and general expenses (2,221) (2,193) (8,536) (8,149) Other operating income 38 30 319 369 Other operating expenses (97) (88) (315) (292) Amortization of intangible assets (809) (848) (3,314) (3,529) Impairment of intangible assets (66) (154) (142) (433) Fair value remeasurement of contingent consideration liabilities (152) 15 Restructuring costs (777) (892) (1,314) (1,384) Other gains and losses, and litigation 190 (138) (327) (138) Operating income 943 323 5,731 6,535 (1) The results of operations of the Merial business previously presented as “held‐for‐exchange” were reclassified and included in income from  continuing operations in accordance with IFRS5 §36, following the announcement to maintain Merial and Intervet‐Schering Plough as two separate organizations. (1) The results of operations of the Merial business previously presented as “held-for-exchange” were reclassified and included in income from continuing operations in accordance with IFRS5 §36, following the announcement to maintain Merial and Intervet-Schering Plough as two separate organizations. 75
    • Consolidated Income Statements € million Q4 2011 Q4 2010(1) FY 2011 FY 2010(1) Operating income 943 323 5,731 6,535 Financial expenses (165) (138) (552) (468) Financial income 52 43 140 106 Income before tax and associates and joint ventures 830 228 5,319 6,173 Income tax expense 415 46 (455) (1,430) Share of profit / loss of associates and joint ventures 245 217 1,070 978 Net income 1,490 491 5,934 5,721 Net income attributable to non-controlling interests 51 54 241 254 Net income attributable to equity holders of Sanofi 1,439 437 5,693 5,467 Average number of shares outstanding ( million) 1,330 1,304.9 1,321.7 1,305.3 Consolidated earnings per share (in euros) 1.08 0.33 4.31 4.19 (1) The results of operations of the Merial business previously presented as “held-for-exchange” were reclassified and included in income from continuing operations in accordance with IFRS5 §36, following the announcement to maintain Merial and Intervet-Schering Plough as two separate organizations. 76
    • Change in Net Debt FY FY € million 2011 2010 Business net income 8,795 9,215 Depreciation, amortization and impairment of property, plant and equipment and intangible 1,156 1,080 assets Gains and losses on disposals of non-current assets, net of tax -52 -111 Other non cash items 579 550 Operating cash flow before changes in working capital(1) 10,478 10,734 Changes in working capital(1) -476 57 Acquisitions of property, plant and equipment and software -1,644 -1,349 Free cash flow(1) 8,358 9,442 Acquisitions of intangible assets excluding software -138 -313 Acquisitions of investments in consolidated undertakings including assumed debt(2) -14,079 -2,121 Restructuring costs paid -707 -892 Proceeds from disposals of property, plant and equipment, intangible assets and other non- 359 111 current assets, net of tax Issuance of Sanofi shares 70 18 Dividends paid to shareholders of Sanofi -1,372 -3,131 Acquisition of treasury shares -1,074 -321 Disposals of treasury shares 3 57 Other items (3) -702 -299 Change in net debt -9,282 2,551 (1) Excluding restructuring costs (2) Net debt does not include contingent considerations for business combinations or non-controlling interests. (3) In 2011: of which foreign exchange effect on net debt (€754 million) 77
    • Simplified Consolidated Balance Sheets ASSETS LIABILITIES & EQUITY 12/31/2011 12/31/2010 12/31/2011 12/31/2010 € million € million Property, plant and equipment 10,750 8,155 Equity attributable to equity holders of sanofi 56,219 53,097 Intangible assets (including goodwill) 61,718 44,411 Equity attributable to non-controlling interests 170 191 Non-current financial assets & investments in associates and deferred 6,839 5,619 Total equity 56,389 53,288 tax assets Non-current assets 79,307 58,185 Long-term debt 12,499 6,695 Inventories, accounts receivable and Non-current liabilities related to business 1,336 388 other current assets combinations and to non-controlling interests 16,667 13,578 Cash and cash equivalents 4,124 6,465 Provisions and other non-current liabilities 10,346 9,326 Current assets 20,791 20,043 Deferred tax liabilities 6,011 3,808 Non-current liabilities 30,192 20,217 Accounts payable & Other current liabilities 10,404 2,800 Current liabilities related to business 220 98 combinations and to non-controlling interests Short-term debt and current portion of long- term debt 2,940 1,565 Current liabilities 13,564 10,087 Liabilities related to assets held for sale Assets held for sale or exchange 67 7,036 or exchange 20 1,672 TOTAL ASSETS 100,165 85,264 TOTAL LIABILITIES & EQUITY 100,165 85,264 78