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Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
Q1 2012 Results
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Q1 2012 Results

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Q1 2012 Results

Q1 2012 Results

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  • 1. Q1 2012 RESULTS April 27th, 2012
  • 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 Key Highlights ● Christopher A. Viehbacher, Chief Executive Officer Business Performance ● Hanspeter Spek, President, Global Operations Financial Performance ● Jérôme Contamine, Executive Vice President, Chief Financial Officer Q&A 3
  • 4. KEY HIGHLIGHTSChristopher A. ViehbacherChief Executive Officer 4
  • 5. 2012 - A Good Start to the Year Total Sales (€m) Business EPS (€) €8,511m €1.85 €7,779m €1.66 +7.0% +7.2% at CER at CER Q1 2011 Q1 2012 Q1 2011 Q1 2012 5
  • 6. 2012 - Entering Final Phase of the Patent Cliff(1) Key Genericized Products(1) - Quarterly Sales (€m) €2,207m €813m 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® U.S. and BMS Alliance (active ingredients of Plavix® and Avapro® sold to BMS) 6
  • 7. 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 (1) Avapro® on March 30, 2012 and Plavix® on May 17, 2012 7
  • 8. Growth Platforms Accounted for 63.2% of Sales in Q1 2012 Growth at CER Emerging Markets €2,624m +9.9%(1) Diabetes Solutions €1,311m +14.4% Consumer Health Care €805m +11.4% Vaccines €617m -0.2% Animal Health €578m -5.4% New Genzyme(2) €400m +13.7%(3) Innovative Products(4) €139m +6.3%(3) Growth is at CER (Constant Exchange Rates) (1) With Genzyme pro forma in Q1 2011, Emerging Market sales grew by 5,6%, and by 7,9% excluding vaccines (2) New Genzyme perimeter include Rare Diseases and Multiple Sclerosis franchises (3) Change on a constant structure basis and at constant exchange rates (4) Multaq®, Jevtana®, and Mozobil® 8
  • 9. Genzyme Rare Diseases On Track ● Q1 2012 Genzyme rare diseases Quarterly Sales(1) (€m) sales reached €400m, +13.7%(1,2) Q1 2012 €149m ● Framingham plant granted EMA and Q1 2011 FDA approvals in January 2012 €139m ● U.S. patients and most severely Q1 2012 €112m affected EU patients moved to full Fabrazyme® dose starting March 2012 & Q1 2011 Other €94m s ● Complete return to normal supply levels of Fabrazyme® starting this Q1 2012 €47m quarter Q1 2011 €30m ● Phase 3 studies of eliglustat in Gaucher disease fully enrolled Other Rare Q1 2012 €93m Diseases products Q1 2011 €81m (1) Genzyme sales are consolidated since April 1, 2011 (2) Change on a constant structure basis and at constant exchange rates 9
  • 10. Significant Pipeline Progress over Last 9 Months Five new molecular entities submitted in last 9 months: Kynamro™ (mipomersen) – hoFH and severe heFH in Jul 2011 in EU and hoFH in Mar 2012 in the U.S. 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 VTE: Venous Thrombo Embolism mCRC: Metastatic Colorectal Cancer 10
  • 11. New Data on Exciting R&D Assets in Q1 2012 Anti-PCSK9 mAb(1)Zaltrap® aflibercept ● First in class agent addressing unmet ● Significant efficacy in RMS(2) needs in hypercholesterolemia with convenient annual dosing, and favorable benefit/risk balance ● Very encouraging Phase II data in clinical studies  Phase III program targeted to start  FDA & EMA submissions expected in Q2 2012 in Q2 2012 (1) Partnership with Regeneron (2) RMS: Relapsing Forms of Multiple Sclerosis Lemtrada is a trade name submitted to health authorities for the investigational agent alemtuzumab in Multiple Sclerosis 11
  • 12. Only Therapy(1) Slowing Accumulation of Disability Sustained for 6 months vs. Active Comparator For Illustrative Purposes Higher Hurdle (2) Active  ComparatorsTypical Threshold for Approval   Placebo Higher Hurdle 3 month EDSS 6 month (1) Investigational compound (2) Based on CARE-MS II 12
  • 13. CARE-MS I - Strong Effect on Relapse Proportion of Relapse-Free Patients at Year 2 HR 0.45 Lemtrada™ 12 mg/day P<0.001 Rebif® 78% 59% Coles A ECTRIMS 2011; platform presentation 13
  • 14. CARE-MS II - Reversing Disability in Some Patients Mean EDSS Change from Baseline Rebif® Lemtrada™ 12 mg/day 0.24 p=0.0064 p<0.0001 ‒0.17 p=0.0044 EDSS: Expanded Disability Status Score Cohen J AAN 2012; platform presentation 14
  • 15. Key R&D Milestones for the Remainder of 2012 2012 Expected Regulatory Submissions Q2 Q3 Q4 ● Lemtrada™ (alemtuzumab) in RMS(1) in the U.S. and EU  ● Lyxumia® (lixisenatide) in Type 2 diabetes in the U.S.(2)  Expected Headline Data Releases ● Lantus® - ORIGIN study results  ● Lantus® - Retrospective cohort studies results  ● Aubagio™ (teriflunomide) – TOWER headline Phase III results in RMS (3) ● Dengue vaccine - Phase IIb efficacy results  Expected Phase III Study Initiations ● Anti-PCSK-9 mAb - Phase III program in hypercholesterolemia  ● Sarilumab (Anti-IL-6R mAb) - Second Phase III trial  (1) RMS: Relapsing Forms of Multiple Sclerosis Lemtrada™, Aubagio™ and Lyxumia® are registered trade names submitted (2) Partnership with Zealand Pharma to health authorities for investigational agents (3) Mid year 2012 15
  • 16. BUSINESS PERFORMANCEHanspeter SpekPresident, Global Operations 16
  • 17. Double Digit Growth in Key Emerging Markets in Q1 2012 ● Q1 2012 Emerging Markets(1) sales of €2,624m, up +9.9% at CER ● Strong sales in BRIC of €917m, +16.5% at CER Emerging Markets Q1 2012 Sales Split (Growth at CER) +16.0% +11.7% +2.1% +8.1% (1) World excluding 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 17
  • 18. Impressive Double Digit Growth in Diabetes Sustainedfor Five Consecutive Quarters ● Q1 2012 Diabetes sales of €1,311m, Quarterly Sales (€m) +17.8% or +14.4% at CER €1,118m ● Strong performance of Lantus®, up +17.2% at CER ● SoloSTAR® accounted for 51.1% of quarterly sales in the U.S. ● Solid performance in Western Europe of +8.0% at CER ● Strong growth in Emerging Markets with sales up +32.4% at CER ● Results of ORIGIN outcome study and two retrospective cohort studies Q1 Q1 Q1 Q2 Q2 Q2 Q3 Q3 Q3 Q4 Q4 Q4 to be presented at ADA in June 10 11 12 10 11 12 10 11 12 10 11 12 18
  • 19. Q1 2012 - Good Quarter for Oncology ● Q1 2012 Oncology sales of €741m, Quarterly Sales (€m) +16.7% or +12.8% at CER €741m ● Sales of Jevtana® reached €54m, up +10.4% at CER ● Taxotere® sales of €150m despite loss 51.8% of exclusivity in the U.S. and EU ● Sales of €133m from ex-Genzyme oncology brands, up +8.4%(1) ● Zaltrap® (aflibercept) granted Priority Review by the FDA 48.2% ● First anti-angiogenic agent to demonstrate a survival advantage in mCRC patients previously treated Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 with oxaliplatin(2,3) ® (4) Oncology Others Eloxatin (1) Change on a constant structure basis and at constant exchange rates (2) m-CRC – Metastatic Colorectal Cancer (3) When combined with FOLFIRI (irinotecan-5-fluorouracil-leucovorin) - Phase III VELOUR study (4) Eloxatin® U.S. market exclusivity expected through August 9, 2012 19
  • 20. Flagship Brands Continue to Grow in Key Geographiesoutside the U.S. in Q1 2012 Quarterly Sales (€m) Quarterly Sales (€m) €404m €359m +11.9% at CER €168m +11.9% at CER €191m +5.2% at CER Q1 2010 Q1 2011 Q1 2012 Q1 2010 Q1 2011 Q1 2012 Emerging Markets Japan Ex-US 20
  • 21. Record Consumer Health Care Sales in Q1 2012 ● Strong Q1 2012 sales of €805m, Quarterly Sales (€m) +13.1% or +11.4 % at CER ® €805m ● Good start of 2nd year for Allegra +1.8% Others €711m OTC in the U.S. with sales of €87m, +5.0% at CER Emerging +21.9% €491m Markets ● Strong performance in Emerging Markets, up +21.9% at CER €339m ● Double digit growth of Dorflex®, +3.6% USA Lactacyd®, Maalox®, NoSpa® and Enterogermina® Western +4.3% Europe ● Contribution of BMP Sunstone in China and Universal Medicare in India(1) Q1 2009 Q1 2010 Q1 2011 Q1 2012 (1) CHC Sales from BMP Sunstone in China and Universal Medicare in India were €22m in Q1 2012 21
  • 22. Sanofi Pasteur Growth in Q1 2012 Impacted by Timingof Seasonal Flu Campaign in Emerging Markets ● Q1 2012 sales of €617m, +2.5% or -0.2% at CER Quarterly Sales (€m) €371m ● Strong sales in mature markets +11.2% at CER ● Solid performance of Pentacel® and Menactra® in the U.S. €246m ● Emerging markets impacted by -13.1% at CER supply phasing issues ● Seasonal flu sales down -15.6% at CER due to timing of Southern Hemisphere (SH) campaign ● Strong flu season expected in H1 2012 in Q1 2011 Q1 2012 Q1 2011 Q1 2012 Southern Hemisphere Mature Markets Emerging Markets ● Good performance of SPMSD JV(1) (1) Sales from SPMSD, the JV with Merck & Co in Europe, are not consolidated by Sanofi Pasteur 22
  • 23. Merial Sales In-Line with Expected Quarterly Phasingin Q1 2012 ● Solid Q1 2012 sales of €578m, but Quarterly Sales (€m) performance impacted by tough comparable (-2.7% or -5.4% at CER) ● Return to growth expected for the remainder of 2012 ● Companion Animals sales of €398m (-6.1% at CER) ● Strong Frontline® buying pattern in U.S. veterinary channels in Q1 2011 ● Production Animals sales of €180m -3.7% at CER or +5,4% at CER excluding FMD and BTV vaccines sales(1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2010 2010 2010 2011 2011 2011 2011 2012 ● Newport acquisition to enlarge presence in Swine market(2) (1) Q1 2011 benefited from one-off sales of Foot-and-mouth and Bluetongue vaccines sales (2) Newport sales were not consolidated by Merial in Q1 2012 23
  • 24. FINANCIAL PERFORMANCEJérôme ContamineExecutive Vice President, Chief Financial Officer 24
  • 25. Growth Platforms and Genzyme More than Offset Impactof Key Genericized Products in Q1 2012 Q1 2012 sales (€m) +9.4% + €187m USD : +€110m JPY : +€51m (2) (2) CNY : +€22m + €733m Others : +€4m €8,511m - €235m €7,779m - €240m + €287m (3) Q1 2011 Key Others Growth Genzyme FX Impact Q1 2012 Genericized including Platforms Products Copaxone ® (1) and Dermik 8,349 (1) Sales impact from end of Copaxone® agreement and Dermik disposal: -€131m (2) JPY: Japanese Yen; CNY: Chinese Yuan (3) Genzyme pro forma Q1 2011 25
  • 26. BOI Double Digit Growth in Q1 2012 Reflects GenzymeConsolidation and Cost Savings€m Q1 2012 Q1 2011 % Change % Change (reported €) (CER)Net sales 8,511 7,779 +9.4% +7.0%Other revenues 426 413 +3.1% -0.5%Cost of sales (2,613) (2,362) +10.6% +9.5%Gross profit 6,324 5,830 +8.5% +5.5%R&D (1,176) (1,100) +6.9% +5.2%SG&A (2,121) (1,933) +9.7% +7.4%Other current operating income & expenses 147 16 - -Share of Profit/Loss of associates 297 292 - -Non controlling interests (54) (78) - -Business operating income 3,417 3,027 +12.9% +8.9%Business operating margin 40.1% 38.9% - - CER: Constant Exchange Rates 26
  • 27. Cost of Sales Ratio Improved in Q1 2012 ● Q1 2012 Cost of Sales of €2,613m Cost of Sales (%) ● Cost of Sales ratio improvement 30.4% 31.0% 31.5% 32.0% 30.7% reflecting: ● Positive impact from productivity improvements and reduced cost of crude heparin ● Negative impact from loss of sales from key genericized products(1), in particular Taxotere® in the U.S. Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 (1) Key genericized products include Lovenox® U.S., Plavix® Western EU, Taxotere® Western EU & U.S., Eloxatin® U.S., Ambien® family U.S., Allegra® U.S., Aprovel® Western EU, Xyzal® U.S., Xatral® U.S., Nasacort® U.S. and BMS Alliance (active ingredients of Plavix® and Avapro® sold to BMS) 27
  • 28. R&D to Sales Ratio Down in Q1 2012 ● Q1 2012 R&D expenses of R&D/Sales Ratio (%) €1,176m 15.2% 14.1% 14.3% 13.9% ● R&D spend in line with quarterly 13.8% average of last 2 years ● Integration of Genzyme R&D ● Ongoing transforming initiatives ● R&D/Sales ratio down 0.7 point vs. Q1 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 28
  • 29. SG&A to Sales Ratio Stable in Q1 2012 ● Q1 2012 SG&A expenses of SG&A/Sales Ratio (%) €2,121m, up +7.4% at CER 27.2% ● SG&A expenses down 4.9% with 26.1% 24.8% 24.2% 24.9% Genzyme pro forma ● SG&A/Sales ratio stable vs. Q1 2011 reflecting: ● Tight control of SG&A expense ● Genzyme synergies Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 29
  • 30. Business Net Income up 12.5% in Q1 2012€m Q1 2012 Q1 2011 % Change % Change (reported €) (CER)Business operating income 3,417 3,027 +12.9% +8.9%Net financial expenses (119) (78) - -Income tax expense (856) (779) - -Effective tax rate -28.0% -28.5% - -Business net income 2,442 2,170 +12.5% +8.4%Net margin 28.7% 27.9% - -Business EPS € 1.85 € 1.66 +11.4% +7.2%Average number of shares outstanding (in million) 1,321.2 1,305.2 - - CER: Constant Exchange Rates 30
  • 31. Strong Free Cash Flow Generated in Q1 2012 In €m ● Strong Free Cash Flow of €2,467m, up +23.0% in Q1 2012+ €2,016m ● €404m of opportunistic share -8,605 repurchases in Q1 2012(1) -10,859 -360 -104 ● Net debt reduced by €2,254m in Q1 2012 -404 +295 ● Gearing of 14.9% by end of FCF March 2012 2,467 Net Debt Net Cash from CapEx Acquisitions Dividend & Restructuring Net Debt Dec 31, 2011 Operating & Licensing Share Costs & Mar 31, 2012 Activities(2) Repurchase Others (3) (1) Represents 7,137,719 shares at an average price of €56.67 (2) Excluding Restructuring Costs (3) Including derivatives related to the financial debt: €456m at Dec 31, 2011 and €503m at Mar 31, 2012 31
  • 32. Continued Strong Execution of Strategy in Q1 2012 1 Good performance from growth platforms 2 Positive contribution from Genzyme integration 3 Significant progress on late stage pipeline 4 Sustained cost control 5 Guidance for FY 2012 reaffirmed 32
  • 33. APPENDICESR&D Pipeline 33
  • 34. Late Stage Pipeline – Pharma & Vaccines Phase III Registration eliglustat tartrate N SYNVISC-ONE™ Quadracel® Hexaxim® Glucosylceramide synthetase inhibitor Medical device Diphtheria, tetanus, pertussis DTP-HepB-Polio-Hib vaccine Gaucher disease Pain in hip OA & polio vaccine; 4-6 y of age iniparib N MACI® Fluzone® QIV IM Plavix® (BSI-201) Cell-based treatment Quadrivalent inactivated clopidogrel bisulfate squamous NSCLC (1L) Articular cartilage defects influenza vaccines PAD, STEMI, Japan ombrabulin (AVE8062) N otamixaban N VaxiGrip® QIV IM teriflunomide N Vascular disrupting agent Direct Xa inhibitor Quadrivalent inactivated Relapsing forms of multiple sclerosis Soft tissue sarcoma (2L/3L) ACS influenza vaccines (RMS) – monotherapy, U.S. / EU mipomersen N Clolar® / Evoltra® Lantus® Dengue Apolipoprotein B-100 antisense DNA synthesis inhibitor insulin glargine Mild-to-severe HoFH and severe HeFH in EU; Adult acute myeloid leukemia (AML) (1L) ORIGIN* dengue fever vaccine HoFH in US SAR302503 (TG101348) N lixisenatide (AVE0010) lixisenatide (AVE0010) N DTP-HepB-Polio-Hib JAK-2 inhibitor GLP-1 agonist GLP-1 agonist Pediatric hexavalent vaccine Myelofibrosis (1L) Type 2 diabetes, U.S. Type 2 diabetes, EU Jevtana® New formulation sarilumab (SAR153191) N Lantus® Cabazitaxel Insulin glargine Anti-IL-6R mAb insulin glargine Metastatic prostate cancer (1L) Type 1+2 diabetes RA Pediatric, EU teriflunomide mipomersen Allegra® semuloparin (AVE5026) N Multiple sclerosis Apolipoprotein B-100 antisense fexofenadine Indirect Xa/IIa inhibitor (adjunct therapy & CIS) Severe HeFH (U.S.) Dry syrup, Japan VTE prevention in cancer patients alemtuzumab N aflibercept N Anti-CD52 mAb VEGF-Trap Multiple sclerosis 2nd line mCRC, U.S. / EU N New Molecular Entity Oncology Thrombosis Vaccines Metabolic Disorders Central Nervous System Internal Medicine Genetic diseases Biosurgery Aging Ophthalmology * ORIGIN: Evaluation of Lantus® in reducing cardiovascular morbidity & mortality 34
  • 35. Early Stage Pipeline – Pharma & Vaccines Phase II N N iniparib FOV1101 SAR231893 (BSI-201) FDC prednisolone/cyclosporine Anti-IL4 mAb Ovarian cancer (2L) Allergic conjunctivitis Asthma; Atopic dermatitis SAR3419 N N N safotibant (FOV2304) ferroquine Maytansin-loaded anti-CD19 mAb Bradykinin B1 antagonist Antimalarial B-cell malignancies refractory/relapsed Diabetic macular edema Malaria (DLBCL, ALL) SAR256212 (MM121) N SAR110894 N fresolimumab N anti-ErbB3 mAb H3 antagonist TGFβ antagonist Breast cancer (2L, 3L) Alzheimers disease Fibrosis SAR245408 (XL147) N SAR113945 N SAR97276 N Oral PI3K inhibitor IKK-β inhibitor Antimalarial Endometrial cancer (1L) Osteoarthritis Malaria SAR245409 (XL765) N SAR292833 (GRC15300) N SAR279356 (F598) N Oral dual inhibitor of PI3K & mTOR TRPV3 antagonist Anti-PNAG mAb Breast cancer (1L) Neuropathic pain, osteoarthritic pain Serious infections ombrabulin (AVE8062) ACAM-Cdiff SAR236553 N Vascular disrupting agent Clostridium difficile Anti-PCSK-9 mAb Ovarian cancer (2L), NSCLC (1L) Toxoid vaccine Hypercholesterolemia SAR302503 (TG101348) JAK-2 inhibitor Rabies VRVg Polycythemia vera (2L) Purified vero rabies vaccine Incyte (ruxolitinib) resistant/intolerant MF Jevtana® Meninge ACYW conj. Cabazitaxel, Microtubule inhibitor 2nd generation meningococcal Small cell lung cancer (2L) Conjugate infant vaccine N New Molecular Entity Oncology Thrombosis Vaccines Metabolic Disorders Central Nervous System Internal Medicine Genetic diseases Biosurgery Aging Ophthalmology 35
  • 36. Early Stage Pipeline – Pharma & Vaccines Phase I SAR153192 N Jevtana® SAR402665 N Rotavirus Anti-DLL4 mAb Cabazitaxel, Microtubule inhibitor (rhASM) Live Attenuated Tetravalent Solid tumors Gastric cancer (2L) Niemann-Pick type B Rotavirus oral vaccine SAR402674 (Genz644282) N SAR127963 N SAR339658 N Streptococcus pneumonia Non-camptothecin topo1 inhibitor P75 receptor antagonist VLA 2 antagonist Meningitis & pneumonia vaccine Solid tumors Trauma brain injury Inflammatory Bowel disease N SAR404477 N N SAR650984 SAR100842 Pseudomonas aeruginosa (AAV-hAADC) Anti-CD38 naked mAb LPA-1/LPA-3 Antibody fragment product Gene therapy Hematological malignancies Skin manifestation of scleroderma Prevention of ventilator-associated pneumonia Parkinsons disease SAR566658 N SAR126119 N SAR156597 N Tuberculosis Maytansin-loaded anti-DS6 mAb TAFIa inhibitor IL4/IL13 Bi-specific mAb Recombinant subunit vaccine DS6 positive solid tumors Acute ischemic stroke Idiopathic Pulmonary Fibrosis SAR307746 N N SAR407899 N RetinoStat® N SAR391786 Anti-Ang2 mAb Rho kinase inhibitor Gene therapy Rehabilitation post orthopedic surgery Solid tumors Diabetic nephropathy Wet age-related macular degeneration (AMD) SAR125844 N N N SAR228810 lixisenatide + Lantus® StarGen® C-Met kinase inhibitor Anti-protofibrillar AB mAb GLP-1 agonist + insulin glargine Gene therapy Solid tumors Alzheimer’s disease Single pen device / Type 2 diabetes Stargardt disease Combinations N N N SAR164653 SAR402663 (sFLT-01) SAR245409 / MSC1936369B SAR399063 Cathepsin A inhibitor Gene therapy SAR245408/SAR256212 (MM121) DHA-GLP + vit D CV-related complications & deaths in Age related Macular Degeneration SAR245408/MSC1936369B Pre-sarcopenia diabetic patients (AMD) Solid tumors SAR393590 (Oral clofaribine) DNA synthesis inhibitor Hematological malignancies N New Molecular Entity Oncology Thrombosis Vaccines Metabolic Disorders Central Nervous System Internal Medicine Genetic diseases Biosurgery Aging Ophthalmology 36
  • 37. R&D Pipeline Summary TableNew Molecular Entities (NMEs) and Vaccines Phase I Phase II Phase III Registration TOTAL Oncology 6 4 3 2 15 Metabolic Disorders 2 1 0 2 5 Thrombosis 1 0 1 0 2 Central Nervous System 2 0 1 1 4 48 Internal Medicine 3 5 1 0 9 Ophthalmology 3 2 0 0 5 Genetic Diseases 1 0 1 0 2 Aging 3 3 0 0 6 Vaccines 4 3 5 1 13 TOTAL 25 18 12 6 61 43 18 NMEs & Vaccines 37
  • 38. Expected R&D Milestones – Pharmaceuticals Product Event Timing LemtradaTM Regulatory submission in RMS in EU and U.S. Q2 2012 anti-PCSK-9 mAb Initiation of Phase III program in hypercholesterolemia Q2 2012 Lantus® ORIGIN Phase III results Q2 2012 AubagioTM TOWER headline Phase III results in RMS Mid year 2012 AubagioTM Expected approval in RMS in U.S. Q3 2012 Zaltrap® Expected approval in 2nd line mCRC in U.S. Q3 2012 KynamroTM Expected approval in hoFH and severe heFH in EU Q3 2012 Visamerin®/Mulsevo® Expected approval in VTE prevention in cancer patients in U.S. and EU Q3 2012 ombrabulin Phase III results in sarcoma Q3 2012 MACI® Regulatory submission in articular cartilage defects in EU Q3 2012 38
  • 39. Expected R&D Milestones – Pharmaceuticals Product Event Timing Lyxumia® Expected approval in type 2 diabetes in EU Q4 2012 Zaltrap® Expected approval in 2nd line mCRC in EU Q4 2012 Lyxumia® Regulatory submission in type 2 diabetes in U.S. Q4 2012 sarilumab Additional Phase III in rheumatoid arthritis Q4 2012 iniparib Phase II results in 2nd line ovarian platinum resistant cancer Q1 2013 SAR110894 Phase II results in Alzheimer’s disease Q1 2013 39
  • 40. Expected R&D Milestones – Vaccines Product Event Timing HexaximTM Scientific opinion issued by EMA Q2 2012 Shan5® Start Phase III clinical study Q2 2012 Fluzone® QIV IM File submission in U.S. Q3 2012 Rotavirus Start Phase I clinical study Q3 2012 HexaximTM File submission in EU Q3 2012 Dengue vaccine First efficacy results from Phase IIb Q3 2012 Fluzone® QIV ID Start of Phase III Q4 2012 Vaxigrip® QIV IM File submission Q1 2013 HPV Start Phase I clinical study Q1 2013 40
  • 41. APPENDICESFINANCE 41
  • 42. Business Net Income StatementFirst quarter 2012 Pharmaceuticals Vaccines Animal health Other Group TotalMillions of euros Q1 2012 Q1 2011 % change Q1 2012 Q1 2011 % change Q1 2012 Q1 2011 % change Q1 2012 Q1 2011 Q1 2012 Q1 2011 % changeNet sales 7,316 6,583 11.1% 617 602 2.5% 578 594 (2.7%) 8,511 7,779 9.4%Other revenues 412 404 2.0% 5 5 9 4 125.0% 426 413 3.1%Cost of sales (2,182) (1,927) 13.2% (263) (268) (1.9%) (168) (167) 0.6% (2,613) (2,362) 10.6%As % of net sales (29.8%) (29.3%) (42.6%) (44.5%) (29.1%) (28.1%) (30.7%) (30.4%)Gross profit 5,546 5,060 9.6% 359 339 5.9% 419 431 (2.8%) 6,324 5,830 8.5%As % of net sales 75.8% 76.9% 58.2% 56.3% 72.5% 72.6% 74.3% 74.9%Research and developmentexpenses (994) (940) 5.7% (141) (125) 12.8% (41) (35) 17.1% (1,176) (1,100) 6.9%As % of net sales (13.6%) (14.3%) (22.9%) (20.8%) (7.1%) (5.9%) (13.8%) (14.1%)Selling and generalexpenses (1,824) (1,645) 10.9% (130) (127) 2.4% (167) (161) 3.7% (2,121) (1,933) 9.7%As % of net sales (24.9%) (25.0%) (21.1%) (21.1%) (28.9%) (27.1%) (24.9%) (24.8%)Other current operatingincome/expenses 144 62 (1) 1 1 (17) 3 (30) 147 16Share of profit/loss ofassociates* 302 283 (5) (4) 13 297 292Net income attributable tonon-controlling interests (55) (78) 1 (54) (78)Business operating 3,119 2,742 13.7% 82 84 (2.4%) 213 218 (2.3%) 3 (17) 3,417 3,027 12.9%incomeAs % of net sales 42.6% 41.7% 13.3% 14.0% 36.9% 36.7% 40.1% 38.9%Financial income and (119) (78)expensesIncome tax expense (856) (779)Tax rate** 28.0% 28.5%Business net income 2,442 2,170 12.5%As % of net sales 28.7% 27.9%Business earnings pershare*** (in euros) 1.85 1.66 11.4% * 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 1,321.2 million in the first quarter of 2012 and 1,305.2 million in the first quarter of 2011
  • 43. Reconciliation of Business Net Income to Consolidated Net IncomeAttributable to Equity Holders of sanofi Millions of euros Q1 2012 Q1 2011 % change Business net income 2,442 2,170 12.5% Amortization of intangible assets (1) (833) (736) Impairment of intangible assets (1) (32) Fair value remeasurement of contingent consideration liabilities (33) (46) Expenses arising from the impact of acquisitions on inventories (14) (2) Restructuring costs (87) (122) Other gains and losses, and litigation (517) Tax effect of: 360 510 amortization of intangible assets 332 263 impairment of intangible assets 10 fair value remeasurement of contingent consideration liabilities 2 expenses arising on the workdown of acquired inventories 4 restructuring costs 22 42 other gains and losses, and litigation 195 Other (7) (7) Net income attributable to equity holders of sanofi 1,827 1,218 50.0% Consolidated earnings per share (in euros)(2) 1.38 0.93 48.4% 43
  • 44. Consolidated Income Statements € million Q1 2012 Q1 2011 Net sales 8,511 7,779 Other revenues 426 413 Cost of sales (2,627) (2,364) Gross profit 6,310 5,828 Research and development expenses (1,176) (1,100) Selling and general expenses (2,121) (1,933) Other operating income 206 118 Other operating expenses (59) (102) Amortization of intangible assets (833) (736) Impairment of intangible assets (1) (32) Fair value remeasurement of contingent consideration liabilities (33) (46) Restructuring costs (87) (122) Other gains and losses, and litigation (517) Operating income 2,206 1,358
  • 45. Consolidated Income Statements € million Q1 2012 Q1 2011 Operating income 2,206 1,358 Financial expenses (139) (101) Financial income 20 23 Income before tax and associates and joint ventures 2,087 1,280 Income tax expense (496) (269) Share of profit / loss of associates and joint ventures 289 285 Net income 1,880 1,296 Net income attributable to non-controlling interests 53 78 Net income attributable to equity holders of sanofi 1,827 1,218 Average number of shares outstanding (million) 1 321.2 1 305.2 Consolidated earnings per share (in euros) 1.38 0.93

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