General Meeting 2014

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General Meeting 2014

  1. 1. | 1 May 5, 2014
  2. 2. This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "plans" and similar expressions. Although Sanofi's management believes that the expectations reflected in such forward- looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Sanofi, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include among other things, the uncertainties inherent in research and development, future clinical data and analysis, including post marketing, decisions by regulatory authorities, such as the FDA or the EMA, regarding whether and when to approve any drug, device or biological application that may be filed for any such product candidates as well as their decisions regarding labeling and other matters that could affect the availability or commercial potential of such product candidates, the absence of guarantee that the product candidates if approved will be commercially successful, the future approval and commercial success of therapeutic alternatives, the Group's ability to benefit from external growth opportunities, trends in exchange rates and prevailing interest rates, the impact of cost containment policies and subsequent changes thereto, the average number of shares outstanding as well as those discussed or identified in the public filings with the SEC and the AMF made by Sanofi, including those listed under "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in Sanofi's annual report on Form 20-F for the year ended December 31, 2013. Other than as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements. 2 Forward Looking Statements
  3. 3. Agenda Introduction & Governance Serge Weinberg, Chairman of the Board of Directors Compensation Policy Gérard Van Kemmel, Director, Compensation Committee 2013 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. 4. Introduction & Governance Serge Weinberg Chairman of the Board of Directors | 4
  5. 5. An Independent and Diversified Board 16 Directors ● 3 reappointments ● Departure of Lord Douro ● Appointment: ● Mr. Patrick Kron ● Independence ratio maintained (11 out of 16) ● Balanced representation (25% women) 16 Directors ● A majority of independent directors (11 out of 16) ● 4 women, or 25% ● 6 foreign directors, or 37.5% ● No over-boarding 5 Current Board Composition Proposed Board Composition
  6. 6. An Active and Engaged Board ● 8 meetings in 2013 ● In 2013 presentations were given by key group managers on their business units ● The Chairman of each specialist committee reports on its work and recommendations to the Board of Directors 6 High attendance rate Over 95%
  7. 7. Separation of the Offices of Chairman and Chief Executive Officer 7 Governance structure chosen by the Board of Directors The Chairman organizes and directs the work of the Board of Directors The Chairman liaises between the Board of Directors and the General Management, and with the Company’s shareholders
  8. 8. Four Specialist Committees Audit Committee Compensation Committee ● New member: Fabienne Lecorvaisier ● 5 financial experts ● 5 independent members out of 6 ● 8 meetings in 2013 ● Regular reviews of the main risks which may have an impact on financial statements ● Specific reviews notably on risk management, pharmacovigilance and compliance ● 3 independent members out of 5 ● 3 meetings in 2013 ● The main activities of this Committee will be presented by Gérard Van Kemmel Presence rate 87% Presence rate 93% 8
  9. 9. Four Specialist Committees (cont’d) ● 5 independent members out of 6 ● 3 meetings in 2013 ● 2013 Committee’s main activities ● Changes in the Board and Committees’ composition ● Selection of a new Board member ● Organization of the Group and succession planning ● Amendment of the Board Charter ● 4 independent members out of 7 ● 3 meetings in 2013 ● Including one in China ● 2013 Committee’s main activities ● Overview of research strategy in core disease areas ● Overview of development portfolio ● Proposed acquisitions 9 Appointments and Governance Committee Strategy Committee Presence rate 93% Presence rate 93%
  10. 10. 2013 Evaluation Forward Looking Board and Committee Evaluation ● Deeper oversight of performance in R&D ● Good quality and frequency of contacts with Group’s management ● Changes in Board composition appreciated ● Board session in China particularly appreciated ● Reduce number of Board members after transition ● Strengthen scientific competencies ● Review of proposed acquisitions: ● By the Strategy Committee before the Board meeting and ● By the Audit Committee post acquisition ● Provide more information on competitive landscape, challenges and strategic alternatives 10
  11. 11. Sanofi Share Performance vs. CAC 40 since January 2011 11 Source: Bloomberg (12/31/2010 - 04/30/2014) €78.02 +63% CAC 40 4487.4 +18%
  12. 12. Sanofi Share Performance vs. European and U.S. Pharma Indices since January 2011 12 Source: Bloomberg (12/31/2010 - 04/30/2014) SXDP = Dow Jones index STOXX® EU 600 Health Care S15PHAR = S&P Pharmaceuticals domestic index (supercomposite pharma sub industry index GICS level4) DJ EU Pharma 634.3 +63% S&P US Pharma 552.6 +82% €78.02 +63%
  13. 13. ● Proposed dividend of €2.80 per share for 2013 results ● Increase of 1.1% vs. 2012 dividend ● Payout of ~55% of 2013 results Sanofi Continues to Offer a Growing Dividend for 2013 13 2013 €2.80 2012 €2.77 2011 €2.65 2010 €2.50 2009 €2.40 2008 €2.20 Evolution of Dividend
  14. 14. Sanofi Pursued Share Repurchase Program 14 Share Buyback in 2013  21,335,144 shares repurchased for cancellation  Weighted average share price of €77.46 per share  Total amount of €1,653 million 2013 21.3m 2012 13.6m 2011 21.7m 2010 6m Q1 2014 4.8m 1,311m 1,341m(1) 1,326m 1,324m Number of Shares Repurchased from 2010 to Q1 2014 (in million) Number of issued shares as of December 31 (1) In 2011, 38,139,730 new shares have been issued as a result of the dividend payment in shares (2) Number of issued shares as of March 31, 2014 1,326m(2)
  15. 15. Shareholder Structure as of December 31, 2013(1) 15 (1) Source: NASDAQ OMX Institutional Investors 77.2% Canada 1.9% L’Oréal Individual Shareholders Employees 1,324,320,881 shares 0.3% Treasury Others 7.5% U.S. France UK Other EU countries Asia Germany Switzerland Rest of the world
  16. 16. Strengthen Employee Share Ownership 16 Sanofi wants to strengthen employee share ownership ● 11th resolution voted in May 2013 ● Implemented in H2 2013 ● 1,672,198 shares subscribed ● 14,770 employees ● More than 80 participating countries 1.3%(1) of Sanofi share capital is held by employees (1) At December 31, 2013 3 Employee Share Ownership Plans since 2005 ●« Action 2005 » ● 23,632 employees ● 2,037,887 shares subscribed ●« Action 2007 » ● 16,779 employees ● 1,531,951 shares subscribed ●« Share 2010 »: global share plan awarding 20 restricted shares to each Group employee ● 105,067 employees ● 2,101,340 restricted shares
  17. 17. Compensation Policy Gérard Van Kemmel Director, Compensation Committee | 17
  18. 18. Composition of the Compensation Committee 18 In accordance with the AFEP-MEDEF Code, more than half the members are independent (3 out of 5) ● Thierry Desmarest ● Jean-René Fourtou ● Claudie Haigneré ● Christian Mulliez ● Gérard Van Kemmel, Chairman The Compensation Committee is composed of:
  19. 19. 19 Compensation Committee Role of the Compensation Committee Makes recommendations and proposals to the Board on the following subjects: Provides an opinion on the top management compensation policy All aspects of the compensation of the CEO and the Chairman of the Board The equity compensation policy (frequency, category of beneficiaries, performance conditions) Allocation of director attendance fees The employee share-ownership policy
  20. 20. First Say on Pay Pursuant to the AFEP-MEDEF Code 20 Advisory vote on elements of compensation due or granted to corporate officers for the financial year ended December 31, 2013 Say on Pay Chief Executive Officer Chairman of the Board
  21. 21. Compensation Policy for the Chairman of the Board 21 ● Annual Fixed Compensation (gross amount) ● Benefits in Kind ● No Directors’ Attendance Fee ● No Annual Variable Compensation ● No Equity Compensation ● No Compensation payable on Termination of Office ● No Pension Entitlement
  22. 22. Elements of Compensation of the Chairman of the Board in 2013 22 (in euro) Amounts due Comments Fixed Compensation 700,000 Fixed Compensation unchanged since his appointment as Chairman of the Board on May 17, 2010 Benefits in Kind 8,040 Company Car Total 708,040
  23. 23. Compensation Policy for the Chief Executive Officer 23 ● Annual Fixed Compensation (gross amount) ● Annual Variable Compensation (gross amount) ● Benefits in Kind ● Equity Compensation Options to subscribe for shares and performance shares ● Compensation payable on Termination of Office ● Pension Plan ● No Directors’ Attendance Fee
  24. 24. Elements of Compensation of the Chief Executive Officer in 2013 24 (in euro) Amounts Due Comments Fixed Compensation 1,260,000 No variation since 2012 Variable Compensation 1,701,000 135% of his Fixed Compensation in 2013 on the basis of four types of criteria: ●Attainment of Financial Targets compared to Budget (45%) ●Improved Performance in Research and Development (25%) ●Organizational Structure of the Group and Succession Planning for Key Posts in the Group (15%) ●Corporate Social Responsibility (15%) Benefits in Kind 3,976 Company Car
  25. 25. 2013 Equity Compensation 25 2013 Grant 2013 Plan Conditions ● 240,000 options to subscribe for shares ● Same quantity as in 2012 ● 45,000 performance shares ● 3,000 more than in 2012 ● Performance conditions measured over 3 years ● 3 performance criteria: ● Business Net Income (40%) ● Return on Assets (40%) and ● Total Shareholder Return (20%) ● Lock-up obligations ● Speculative and hedging transactions forbidden ● Nearly 8,000 beneficiaries
  26. 26. Post-Office Compensation Elements of the Chief Executive Officer 26 Compensation Payable on Termination of Office Pension Plan ● Only if the departure is non-voluntary and linked to a change in control or strategy ● Contingent upon fulfillment of performance criteria: ● Adjusted Net Income excluding selected items ● Operating Cash Flow ● Growth in Net Sales compared to 12 global pharmaceutical companies ● Amounts limited to 24 months of fixed and variable compensation ● Top-up pension may not exceed 37.5% of the reference compensation ● Progression rate 1.5% per year of service ● Number of years of service capped at 25 ● No acquired right before retirement ● Plan offered to employees of Sanofi and of its French subsidiaries (more than 500 eligible employees)
  27. 27. Directors’ Compensation: Attendance Fees 27 Allocation Principles ● Largest part conditioned on activity (Board and Committees’ sessions) ● Differentiated allocation rate (chairmanship, directors resident outside France) 2013 ● €1.5m envelope (unchanged since 2011) ● Unchanged rates ● Stable distributed amounts
  28. 28. 2013 Achievements & Outlook Christopher A. Viehbacher Chief Executive Officer | 28
  29. 29. 2013: A Transition Year 29 Growth Platforms Research & Development End of the Patent Cliff ● From September to December 2013, the underlying growth profile of the new Sanofi emerged ● Throughout 2013, we left the patent cliff further behind us ● Growth platforms now account for 73% of sales(1) compared to 43% in 2008 ● Sanofi currently has 9 high-potential late-stage projects(2) ● 45% of sales(3) come from biologics and 80% of development pipeline projects(4) are biologics (1) Growth Platforms include Emerging Markets, Diabetes Solutions, Vaccines, Consumer Healthcare, Animal Health, Genzyme & Other Innovative Products. In Q4 2013, sales from Growth Platforms accounted for 72.9% of Group sales (2) Toujeo™ (U300), 6-in-1 vaccine PR5I (U.S.), alirocumab, Dengue vaccine, lixisenatide (U.S.), sarilumab, LixiLan, dupilumab, C. Diff vaccine (3) Sales from biologics include insulins (Lantus®, Apidra®, Insuman®), Genzyme rare disease products, Lovenox®, vaccines from Sanofi Pasteur, vaccines from Merial, selected oncology products (Thymoglobulin®, Mozobil®, Zaltrap®), Lemtrada™ and half of SPMSD sales (non-consolidated) (4) 39 NMEs and vaccines out of a total of 49
  30. 30. Sales(1) Business Earnings per Share(1) Sanofi Returned to Growth in the Second Half of 2013 30 - 24.3% -9,0% + 7.4% 1st half of 2013 2nd half of 2013 + 3.5% Growth by Half in 2013 Full-Year 2013(2) - 4.6% €32,951m - 0.5%(1) €5.05 - 9.8%(1) 1st half of 2013 2nd half of 2013 (1) Evolution at Constant Exchange Rates (CER) (2) On a reported basis, FY 2013 sales were down -5.7% and Business EPS was down -17.8%
  31. 31. Growth Platforms Grew by +6.6% (1) in 2013, Reaching 72.5% of Total Sales 31 +18.7% -0.1% +5.2% +25.9% -5.3% €705m +18.8% +4.4% €3,716m €6,568m €3,004m €2,142m €10,957m €1,985m 2013 Growth at CER (1) Growth at constant exchange rates (CER) (2) World excluding U.S., Canada, Western Europe, Japan, Australia, and New Zealand (3) Genzyme perimeter includes Rare Diseases and Multiple Sclerosis franchises (4) Products launched since 2009 which are not included in the Growth Platforms listed above: Multaq®, Jevtana®, Auvi-Q™, Mozobil® and Zaltrap® Genzyme(3) Vaccines Other Innovative Products(4) Diabetes Solutions Animal Health Emerging Markets(2) Consumer Healthcare
  32. 32. 2013 Was a Solid Year for New Approvals and Regulatory Submissions HoFH: Homozygous Familial Hypercholesterolemia (1) Re-submission expected in Q2 2014 32 7 Approvals in 2013 2 Projects in Registration Aubagio® in Multiple Sclerosis (EU) Lemtrada™ in Multiple Sclerosis (EU) Lyxumia® in Diabetes (EU & Japan) Zaltrap® in Colorectal Cancer (EU) Kynamro® in HoFH (U.S.) Fluzone® QIV flu vaccine (U.S.) Hexyon®/Hexacima® 6-in-1 vaccine (EU) Cerdelga™ in Gaucher disease (EU & U.S.) Lemtrada™ in Multiple Sclerosis (U.S.)(1)
  33. 33. Cerdelga™ (eliglustat) - A Novel Investigational Oral Therapy to Expand Genzyme’s Gaucher Franchise ©ChrisKirzeder,KirzederPhotography:Maryze,MaladiedePompe,Pays-Bas 33 A SANOFI COMPANY 400 adults in 29countries ● Oral therapy eliminating infusion challenges ● Ongoing regulatory review by health authorities in Europe and the U.S. Largest ever clinical program in Gaucher Results of the ENGAGE Study(1) +2% -28% Placebo Eliglustat 30% Absolute Difference p<0.0001 % change of spleen volume at 9 months (1) See press release issued on Feb 15, 2013
  34. 34. Genzyme Is Well Positioned to Enter the $15bn Global MS Market 34 A SANOFI COMPANY ● An innovative oral treatment ● Launched in the U.S. and Europe ● FY 2013 sales of €166m ● Efficacy demonstrated vs. interferon beta(1) ● EU launch rollout started in Q4 2013 ● Resubmission of application for U.S. FDA review expected in Q2 2014 Europe U.S. Europe >2 million people with multiple sclerosis worldwide Lemtrada™ is developed in collaboration with Bayer HealthCare (1) Rebif® (interferon beta-1a)
  35. 35. 9 Late-Stage Projects Potentially Filed in 2014-2018 ● Toujeo™ (U300) ● Lixisenatide ● LixiLan 35 ● Sarilumab Rheumatoid Arthritis ● Dupilumab Atopic Dermatitis, Asthma Vaccines Immune Mediated Diseases Diabetes Cholesterol ● Alirocumab Hypercholesterolemia ● 6-in-1 Vaccine PR5I ● Dengue Vaccine ● Clostridium Difficile Vaccine
  36. 36. 36 Promising Projects in Phase III to Strengthen Diabetes Portfolio Dahmen R et al, ADA 2013, abstract no. 113-OR. Euglycemic clamp study in T1D in steady state Next Generation Basal Insulin for a Broad Diabetes Population Flatter PK Profile Serum Insulin Glargine Concentration More prolonged PD Profile Glucose Infusion Rate U300 Lantus® U300 Lantus® ® + Combining Lantus® and Lyxumia® in a Single Daily Injection Toujeo™ U300 Lixi Lan
  37. 37. 37 Vaccine Candidates in Phase III Addressing Major Public Health Challenges (1) Dengue and severe dengue; WHO Fact Sheet No. 117 updated Sep. 2013 http://www.who.int/mediacentre/factsheets/fs117/en/index.html (2) Centers for Disease Control and Prevention First-in-class Dengue Vaccine - 2.5 billion People at Risk(1) Vaccine Preventing Primary Symptomatic Clostridium Difficile Infections (CDI) Dengue C. Diff ● A growing global threat ● 100 million symptomatic dengue cases worldwide per year(1) ● 500,000 people with severe dengue requiring hospitalization ● 2.5% of people with severe dengue die ● An ambitious development program ● First Phase III study in Asia met its primary endpoint ● 56% reduction of dengue disease cases ● Results of second Phase III study expected in H2 2014 ● Most common cause of healthcare associated infections in developed countries(2) ● Targeted patients at high risk of CDI ● Elderly with antibiotic use, planned at-risk admissions to hospital and long-term care facilities residents ● Ongoing Phase III program ● Expected to be completed by end 2017
  38. 38. 38 Alirocumab: Targeting Hypercholesterolemic Patients at High CV Risk with Unmet Needs(1) PCSK9: proprotein convertase subtilisin/kexin type 9, an enzyme that can contribute to elevated LDL-C levels through degradation of LDL-C receptors (1) Source: Internal analysis of patients at high cardiovascular (CV) risk: Statin intolerant patients at high risk, diabetes patients with 2 risk factors with our without CV events, secondary prevention without diabetes, patients with Heterozygous Familial Hypercholesterolemia (HeFH) (2) ODYSSEY MONO is the first study to report data from the Phase III ODYSSEY program, results presented at the American College of Cardiology meeting from March 29-31, 2014. Also see press release issued on October 16, 2013. ● Fully human anti-PCSK9 monoclonal antibody co-developed with Regeneron ● Global Phase III program ongoing with 14 clinical studies 21.6 million patients potentially concerned(1) Projections for 2016 Patients at high cardiovascular risk and not at goal for LDL-C ODYSSEY MONO(2) - Mean LDL-C Change - 15.6% - 47.2% ezetimibe alirocumab p<0.0001 % Change at Week 24
  39. 39. 39 Sarilumab: A New Biologic Molecule Developed for Patients with Rheumatoid Arthritis (RA) IL-6R – Interleukin-6 receptor contributing to the inflammatory mechanism of RA ACR – American College of Rheumatology score (ACR20 –20% improvement; ACR50 - 50% improvement; ACR70 – 70% improvement) (1) Sources: IMS data Q3/2012 – Q3/2013, Decision Ressources, Treatment Trends® Rheumatoid Arthritis (US) 2013 (2) See press release issued on Nov 22, 2013 ● Fully human monoclonal antibody targeting IL-6R, co-developed with Regeneron ● First positive Phase III results in moderate-to-severe RA (SARIL-RA-MOBILITY) $18bn RA biologic market(1) SARIL-RA-MOBILITY - Signs & Symptoms(2) 17.0 33.0 Sarilumab 200 mg + MTX 20.0* 25.0* 46.0* 37.0* 58.0* 66.0* Sarilumab 150 mg + MTX Placebo + MTX 7.0 ACR20** ACR70 ACR50 MTX: methotrexate * p<0.0001 vs. placebo ** Primary endpoint ACR Response at Week 24 (% of Patients)
  40. 40. 40 Dupilumab: Named “Clinical Advance of the Year 2013”(1) ● Fully human monoclonal antibody targeting IL-4Rα, co-developed with Regeneron ● Ongoing Phase II studies ● Positive results in Phase IIa studies in two indications: ● Atopic Dermatitis ● Asthma ● Ongoing Phase IIa study in Nasal Polyposis IL-4Rα: subunit of the interleukin 4 receptor contributing to the mechanisms inducing atopic dermatitis and certain categories of asthma (1)Named “Clinical Advance of the Year 2013” by Scrip Intelligence (2)Study published in the New England Journal of Medicine (NEJM), see press release issued on May 21, 2013 Asthma Phase IIa Study(2) 44.2% 87% reduction p<0.001 5.8% Placebo Dupilumab Atopic Dermatitis Asthma Exacerbations (% of Patients)
  41. 41. Outlook for 2014 ● New product launches are underway or imminent in most of Sanofi's core businesses and several high potential R&D projects progressed in 2013 ● The creation of growth platforms and the evolution of our R&D pipeline have effectively transformed Sanofi into a major biopharmaceutical player ● Growth Platforms now account for 73% of sales (1) FY 2013 Business EPS of €5.05 41 1 2 3 2014 business EPS is expected to be between 4% to 7% higher than 2013 at CER(1), barring major unforeseen adverse events
  42. 42. Financial Performance Jérôme Contamine Executive Vice President, Chief Financial Officer | 42
  43. 43. 43 FY 2013 Reflects Patent Cliff and Operational Issues in First 8 Months and Return to Growth in Last 4 Months €m FY 2013 FY 2012 % Change (reported €) % Change (CER) Net sales 32,951 34,947 -5.7% -0.5% Other revenues 355 1,010 -64.9% -63.9% Gross profit 22,324 24,882 -10.3% -4.8% Business operating income 9,324 11,448 -18.6% -11.1% Effective tax rate 24.0% 25.5% - - Business net income 6,687 8,101 -17.5% -9.6% Business EPS €5.05(1) €6.14 -17.8% -9.8% Business EPS at CER of €5.54 in 2013 CER: Constant Exchange Rates (1) FY 2013 Business EPS at CER was €5.54. The negative FX impact on Business EPS was €0.49 in 2013
  44. 44. Controling Costs While Investing in R&D and the Launch of New Products 44 2013201220132012 20132012 33.4% of sales 14.5% of sales 26.1% of sales €8,602m €4,770m €10,982m€11,075m €4,905m €8,929m Cost of Sales (€m) R&D Expenses (€m) SG&A Expenses (€m)
  45. 45. ● 2014 savings will come mainly from manufacturing (CoS) ● Savings are expected to be reinvested in pre-launch and launch costs and late-stage R&D programs 45 ● 85% of the €2bn cost reduction program(1) has been achieved in the last two years ● Over half of the savings have been reinvested in growth platforms, in product launches and late-stage clinical trials Ongoing Cost Savings Program of €2bn Is Expected to Be Completed by 2014 2012 + 2013 2014 (1) At CER, before inflation and tax on a constant structure basis
  46. 46. From Business Net Income to Consolidated Net Income 46 €m FY 2013 FY 2012(1) % Change (reported €) Business net income 6,687 8,101 (17.5%) Amortization of intangible assets (2,914) (3,291) Impairment of intangible assets (1,387) (117) Fair value remeasurement of contingent consideration liabilities 314 (192) Expenses arising on the workdown of acquired inventories (8) (23) Restructuring costs (300) (1,141) Tax effect on the items listed above & other tax items 1,480 1,580 Other tax items(2) (109) Share of items listed above attributable to non-controlling interests 4 3 Restructuring costs and expenses arising from the impact of acquisitions on associates and joint ventures (50) (31) Net income attributable to equity holders of Sanofi 3,717 4,889 (24.0%) (1) Including impact of transition to IAS19R (2) In 2013, including a tax on dividends paid to shareholders of Sanofi
  47. 47. Net Debt Dec 31, 2013Other €355m Acquisitions, Licensing, Net of Disposals €151m Dividend Payment €3,638m Share Repurchase €1,641m Proceeds from Issuance of Shares €1,004m CapEx €1,198m Net Cash from Operating Activities Net Debt Dec 31, 2012 Net Debt Was Reduced by €1.7bn to €6.0bn in 2013 Tight Control over WCR and CapEx 47 (1) (2) €7,719m €6,043m €7,655m (1)(3) Net Debt (in €m) FCF €6,457m WCR: Working Capital Requirement (1) Including derivatives related to the financial debt +€431m at Dec 31, 2012 and +€290m at Dec 31, 2013 (2) Excluding Restructuring costs (3) Other including Restructuring costs
  48. 48. 2013201220112010 Targeted Investments in 2013 48 Major Investments in 2013 €1,198m €1,261m €1,644m €1,402m ● Genzyme: major investments in Cerezyme® and Fabrazyme® production sites in the United States ● UCI: investment in 4 industrial sites in France for the production of hydrocortisone by an innovative biosynthetic process ● Information Solutions: investments in global infrastructure on multiple sites ● Insulin production: investments in the Frankfurt site to ensure U.S. FDA compliance CapEx Evolution
  49. 49. A Strong Balance Sheet 6.0 - 5.8 - 0.4 + 1.9 - 0.5 - 3.6 + 0.2 - 1.7 52.5 19.6 5.6 8.3 57.0 14.7 14.3 49 + 0.4 December 31, 2013In €bn Change vs. December 31, 2012 ASSETS LIABILITIES & EQUITY Net Debt (A-B) Intangible assets Other non-current assets WCR Net cash (B) Equity attributable Provisions and other non-current liabilities Financial debt (A)(1) (1) Including interest rate and currency derivatives used to hedge debt
  50. 50. Q1 2014 -€0.11 FXIncremental EPS at CER Q1 2013 +€0.07 Net Sales Business EPS In Q1 2014 Sanofi Delivered Top and Bottom Line Growth at CER 50 (1) CER: at constant exchange rates. On a reported basis, Q1 2014 sales were down -2.7% and Business EPS was down -3.3% (2) With retroactive application of IFRIC21 +5.8% at CER(1) Incremental Sales at CER Q1 2014Q1 2013 FX +€280m -€497m +3.5% at CER(1) €8,059m €7,842m €1.21 €1.17 (2)
  51. 51. ● Mobile application dedicated to Sanofi’s financial news ● Available in the App Store and on Google Play ● Publications for individual shareholders ● Shareholder Handbook ● Letter to Shareholders ● Fact Sheet ● A rich and useful Website ● With a dedicated section for individual shareholders www.sanofi.com/shareholders Transparent Information for our Shareholders 51
  52. 52. ©FredericCirou/PhotoAlto/GraphicObsession Organizing Regular Meetings ● 6 shareholder meetings in France in 2014 ● March 27: Mulhouse ● May 26: Strasbourg ● June 10: Lyon ● September 16: Nice ● September 25: Dijon ● December 15: Biarritz ● Presence at Actionaria shareholder exhibition ● November 21-22: Palais des Congrès, Paris ● Individual Shareholders Committee ● 10 members meeting 4 times/year 52
  53. 53. General Meeting 2014 Questions & Answers | 53
  54. 54. General Meeting 2014 Vote on the Resolutions | 54

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