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May 4, 2015
GENERAL MEETING
Forward Looking Statements
This presentation contains forward-looking statements as defined in the Private Securities Liti...
Agenda
2014 Results & Performance
Jérôme Contamine, Executive Vice President, Chief Financial Officer
3
Introduction & Gov...
Introduction & Governance
Serge Weinberg
Chairman of the Board of Directors
An Independent, Diversified and Renewed Board
14 Directors16 Directors
5
Current Board Composition Proposed Board Composit...
High attendance rate
from Directors
>92%
In 2014:
An Active and Engaged Board
● Increased activity: 11 meetings
● Presenta...
Four Specialist Committees
Audit Committee
Compensation Committee
● Chairman: Robert Castaigne
● 5 financial experts
● 5 i...
Four Specialist Committees (cont’d)
Appointments and Governance Committee
Strategy Committee
● 3 independent members out o...
Sanofi Share Performance vs. CAC 40 since January 2011
9Source: Bloomberg (12/31/2010 - 04/30/2015)
30 €
40 €
50 €
60 €
70...
Sanofi Share Performance vs. Pharma Company Peers since
January 2011
10Source: Bloomberg (12/31/2010 - 04/30/2015)
+74%
+6...
2013 2014
€2.85€2.80
2012
€2.77
2011
€2.65
2010
€2.50
2009
€2.40
11
The Dividend Is a Core Part of our Value Proposition t...
An International and Diversified Shareholder Base(1)
12(1) Shareholder structure as of December 31, 2014, source: NASDAQ C...
Strengthen Employee Share Ownership
13
Sanofi Wants to Strengthen
Employee Share Ownership
● 21th resolution submitted to
...
Compensation Policy
Gérard Van Kemmel
Director, Compensation Committee
Composition of the Compensation Committee
● Jean-René Fourtou
● Claudie Haigneré
● Christian Mulliez
● Gérard Van Kemmel, ...
Compensation Policy for the Chairman of the Board
16
● No Directors’ attendance fee
● No annual variable compensation
● No...
Elements of Compensation of Serge Weinberg in 2014
17
(in euro) Amounts due Comments
Fixed compensation 700,000
Fixed comp...
Elements of Compensation of Christopher Viehbacher in 2014
(in euro) Amounts due Comments
Fixed compensation 1,040,870
Amo...
Equity Compensation of Christopher Viehbacher in 2014
● 240,000 options to subscribe for
shares
● Same quantity as in 2013...
Settlement Agreement Signed in 2015 with Christopher Viehbacher
20
(in euro) Amounts due Comments
Severance benefit 0
Loss...
Compensation Policy for the Chief Executive Officer
● Annual fixed compensation (gross amount)
● Annual variable compensat...
Elements of Compensation of Olivier Brandicourt in 2015
22
(in euro) Amounts due Comments
Fixed compensation 1,200,000
Var...
Indemnification of Elements Lost by Olivier Brandicourt
23
(in euro) Amounts due Comments
Exceptional
compensation 2015
2,...
Post-Office Compensation Elements of Olivier Brandicourt
24
Severance Benefit Non-Compete Indemnity Pension Plan
● Departu...
Priorities & Launches
Olivier Brandicourt
Chief Executive Officer
Sanofi – Solid Assets for the Future
26
● Good performance and financial discipline
● Many new products addressing unmet
m...
A Clear Set of Near-Term Priorities
27
Focus on launches of new medicines and vaccines
Continue strong momentum in R&D
Dev...
28
Substantial Improvement of Returns from R&D
10
launches
achieved
2007 - 2013
2014 - 2020
Up to
18
launches
expected
Den...
Five Major New Products Launches since 2014
Recent Product Launches
29
Relapsing remitting
multiple sclerosis
Oral treatme...
● Approved in the U.S. in February 2015
● Launched in late March 2015
● Toujeo® COACH patient support program
● Approved i...
Afrezza® - The Only Rapid-Acting Inhaled Insulin Launched in the
U.S. in February 2015
● Small portable inhaler
● Powder d...
Lemtrada® - An Important Treatment for Patients with Relapsing
Remitting Multiple Sclerosis
32
(1) Genzyme holds the world...
Expanding Genzyme’s Gaucher Franchise with Cerdelga®
33
● Oral therapy eliminating infusion challenges
● Launched in the U...
Successful launch of NexGard®, a New Oral Anti-Parasitic
for Dogs
34
● First and only beef-flavored oral treatment in the ...
Praluent® (alirocumab) is developed in collaboration with Regeneron
(1) Rolling submission process in some endemic countri...
Praluent® - Targeting Hypercholesterolemic Patients at High
Cardiovascular (CV) Risk with Unmet Needs
36
24
million
patien...
Make Dengue the Next Vaccine-Preventable Disease
(1) WHO, Dengue and severe dengue, factsheet no.117, updated in March 201...
Corporate Social Responsibility (CSR)
A Strategy Placing the Patient at the Core of our Activity
● 4 strategic pillars
● P...
Expanding Access to Healthcare and Ensuring Patient Safety
In 2014, Sanofi’s access to healthcare programs
resulted in:
● ...
Strong Partnerships to Help Patients Most in Need
World
Health
Organization
DNDi Foundation
PATH
MMV
Bill and Melinda
Gate...
Our Focus Continues to Be on Excellence in Execution
of Sanofi’s Strategy
Adapt structure for future
challenges and opport...
Progress in
Research & Development
Elias Zerhouni
President, Global R&D
Significant Achievements in Phase III
Familial Amyloid
Cardiomyopathy
Type 2 Diabeteslixisenatide (U.S.)
revusiran
Atopic ...
Sarilumab: An Investigational Monoclonal Antibody for
Rheumatoid Arthritis (RA)
Phase III ongoing
● First positive results...
Dupilumab Offers Potential to Change Management of Patients
Severely Affected by Various Allergic Diseases(1)
Dupilumab is...
LixiLan: Fixed-Ratio Combination of Lantus® and Lyxumia®
in a Single Daily Injection
46
Phase III ongoing
● LixiLan-O: stu...
Lyxumia® (lixisenatide) for Patients with Type 2 Diabetes
Submitted in the U.S. Soon
47
GLP-1 receptor agonist
approved in...
Patisiran and revusiran developped in collaboration with
Alnylam(1)
48
TTR: transthyretin is the disease-causing protein i...
49
A Successful Model for Productive R&D Collaborations
(1) REGN closing share price on Dec 31, 2014 was $410.25
(2) “Sign...
Vatelizumab(1)
Multiple Sclerosis
IL4/IL13 bi-specific mAb
Idiopathic Pulmonary Fibrosis
Anti-GDF8 mAb
Sarcopenia
Oral GCS...
2014 Results & Performance
Jérôme Contamine
Executive Vice President, Chief Financial Officer
52
Solid Top and Bottom Line Growth Achieved in 2014
(1) On a reported basis, FY 2014 sales were up +2.5% and Business EPS...
Strong Performance of Most Business Areas in 2014
53
Full-Year 2014 Sales by Business Areas
CER: Constant Exchange Rates
(...
Geographical Sales Mix in 2014
Growth at CER
CER: Constant Exchange Rates
(1) World excluding U.S., Canada, Western Europe...
55
FY 2014 Business EPS Growth of +7.3%
in Line with Financial Guidance
€m 2014 2013
% Change
(reported €)
% Change
(CER)
...
Moderate Increase in Expenses Due to Investments in R&D
and Launches of New Products
56
201420132013 2014 20142013
Cost of...
Net Income(1)
Increased by 18.1%
57
€m 2014 2013(2) % Change
(reported €)
Business net income 6,847 6,686 2.4%
Amortizatio...
58 58
(1) Including derivatives related to the financial debt +€290m at December 31st 2013 and +€302m at December 31st 201...
Capital Investments Grew Slightly in 2014
59
Important Investments in our Industrial Capacity in 2014
2014
€1,223m
2013
€1...
Our International Development Enables a Strong Presence
in France
60
(1) Human and animal health
(2) Companies with headqu...
An Industrial Heritage in France Serving Patients Worlwide
61
● Of which 24% in France
● 22 production sites
● 4 distribut...
Strong Balance Sheet
December 31, 2014
Assets
Liabilities & Equity
Net Debt (A-B) 7.2
In €bn
Change vs.
December 31, 2013
...
Outlook for 2015 - Investing in Future Growth Drivers
636363
Business EPS Growth
FX impact on Business EPS Approximately +...
FX Impact
+€0.12
Incremental
EPS at CER
+€0.03
Q1 2014 Q1 2015
+€782m
Incremental
Sales at CER
FX Impact Q1 2015Q1 2014
+€...
Paris
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Sanofi’s financial news
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General Meeting 2015

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General Meeting 2015

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General Meeting 2015

  1. 1. May 4, 2015 GENERAL MEETING
  2. 2. Forward Looking Statements 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, 2014. Other than as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements. 2
  3. 3. Agenda 2014 Results & Performance Jérôme Contamine, Executive Vice President, Chief Financial Officer 3 Introduction & Governance Serge Weinberg, Chairman of the Board of Directors Compensation Policy Gérard Van Kemmel, Director, Compensation Committee Progress in Research & Development Elias Zerhouni, President, Global R&D Questions & Answers Vote on the resolutions Priorities & Launches Olivier Brandicourt, Chief Executive Officer
  4. 4. Introduction & Governance Serge Weinberg Chairman of the Board of Directors
  5. 5. An Independent, Diversified and Renewed Board 14 Directors16 Directors 5 Current Board Composition Proposed Board Composition A majority of independent Directors (11 out of 16) Recent arrival of Bonnie Bassler and Olivier Brandicourt 5 non-French Directors (31%) No over-boarding, for increased attendance and involvement A Board renewed over the past few years International Widely independant (10 out of 14) Gender balanced (36% of women) A smaller Board Expertise in the scientific and pharmaceutical field
  6. 6. High attendance rate from Directors >92% In 2014: An Active and Engaged Board ● Increased activity: 11 meetings ● Presentations by key Group managers on their business units ● Review of many proposed acquisitions ● Transitional period for the office of Chief Executive Officer 6
  7. 7. Four Specialist Committees Audit Committee Compensation Committee ● Chairman: Robert Castaigne ● 5 financial experts ● 5 independent members out of 6 ● 6 meetings in 2014 ● 3 independent members out of 4 ● 12 meetings in 2014 Attendance Rate 97% Attendance Rate 98% ● Regular reviews: main risks which may have an impact on financial statements ● Specific reviews: notably progress reports on acquisitions and investments and update on compliance programs ● The main activities of this Committee will be presented by Gérard Van Kemmel 7
  8. 8. Four Specialist Committees (cont’d) Appointments and Governance Committee Strategy Committee ● 3 independent members out of 4 ● 11 meetings in 2014 ● 2 independent members out of 5 ● 7 meetings in 2014 Attendance Rate 98% Attendance Rate 87% 8 ● Review of the Chief Executive Officer’s (CEO) situation and his departure conditions ● Search for a new CEO ● Temporary combination of the offices of Chairman and CEO ● Chairmanship entrusted to Jean-René Fourtou ● Business overviews: Diabetes, Digital, Oncology, Generics, Biosurgery ● R&D financing ● Strategic opportunities ● Review of proposed acquisitions and partnerships
  9. 9. Sanofi Share Performance vs. CAC 40 since January 2011 9Source: Bloomberg (12/31/2010 - 04/30/2015) 30 € 40 € 50 € 60 € 70 € 80 € 90 € 100 € €91.20 +91% CAC 40 5046.5 +33%
  10. 10. Sanofi Share Performance vs. Pharma Company Peers since January 2011 10Source: Bloomberg (12/31/2010 - 04/30/2015) +74% +65%+60%+54% +23% +207% +141% +105%+103%+97%+94%+91% +137%
  11. 11. 2013 2014 €2.85€2.80 2012 €2.77 2011 €2.65 2010 €2.50 2009 €2.40 11 The Dividend Is a Core Part of our Value Proposition to Shareholders ● Proposed dividend of €2.85 per share for 2014 financial year(1) ● 21st consecutive year of dividend increase ● Payout of 52% of our 2014 free cash flow(2) (1) Submitted for approval by shareholders at the Annual General Meeting on May 4, 2015 (2) Free cash flow before restructuring costs. The total amount of dividend to be distributed (€3,760m) is calculated on the basis of the number of shares entitled to dividend as of December 31, 2014, i.e. 1,319,367,445, and may change if the number of shares entitled to dividend changes between January 1, 2015 and the dividend ex-date, in particular as a result of changes in the number of treasury shares, the vesting of consideration-free shares and the exercise of stock options (if the beneficiary is entitled to dividend under the rules of the relevant plan). (1) Evolution of Dividend
  12. 12. An International and Diversified Shareholder Base(1) 12(1) Shareholder structure as of December 31, 2014, source: NASDAQ Corporate Solutions Institutional investors 77.3 % Individual Shareholders Employees 7.5 % 7.8% 6.2% 9.0% 5.5% 12.9% 13.7% 29.1% United States France UK Other EU countries Asia Germany Switzerland Canada Rest of the world L’Oréal 1,319,367,445 shares 0.7% Treasury Miscellaneous 2.6% 3.4% 1.3% 1.6% 2.8% 3.4%
  13. 13. Strengthen Employee Share Ownership 13 Sanofi Wants to Strengthen Employee Share Ownership ● 21th resolution submitted to the present Shareholders’ General Meeting vote ● To be implemented in H2 2015 ● More than 80 participating countries (1) At December 31, 2014 4 Plans since 2005 ● >2 million shares subscribed ● >1.5 million shares subscribed Global share plan awarding 20 restricted shares to each Group employee ● >2.1 million restricted shares allocated ● >1.6 million shares subscribed 1.3%(1) of Sanofi share capital is held by employees Action 2005 Action 2007 Share 2010 Action 2013
  14. 14. Compensation Policy Gérard Van Kemmel Director, Compensation Committee
  15. 15. Composition of the Compensation Committee ● Jean-René Fourtou ● Claudie Haigneré ● Christian Mulliez ● Gérard Van Kemmel, Chairman In accordance with the AFEP-MEDEF Code, more than half the members are independent (3 out of 4) The Compensation Committee is composed of: 15
  16. 16. Compensation Policy for the Chairman of the Board 16 ● No Directors’ attendance fee ● No annual variable compensation ● No equity compensation ● No compensation payable upon termination of office ● No pension entitlement ● Annual fixed compensation (gross amount) ● No adjustment in spite of the temporary combining of the offices of Chairman of the Board and Chief Executive Officer for five months ● Benefits in kind
  17. 17. Elements of Compensation of Serge Weinberg in 2014 17 (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 8,174 Company car Total 708,174
  18. 18. Elements of Compensation of Christopher Viehbacher in 2014 (in euro) Amounts due Comments Fixed compensation 1,040,870 Amounts prorated in accordance with his presence within the Group in 2014 Variable compensation 1,338,750 85% of the target compensation, due in 2015, prorated in accordance with his presence within the Group in 2014 on the basis of four types of criteria: ● Attainment of financial targets compared to budget (45%) ● New product registrations and submissions (25%) ● Organizational structure of the Group and succession planning for key posts in the Group (0%) ● Corporate Social Responsibility (15%) Benefits in kind 3,424 Company car 18
  19. 19. Equity Compensation of Christopher Viehbacher in 2014 ● 240,000 options to subscribe for shares ● Same quantity as in 2013 ● 45,000 performance shares ● Same quantity as in 2013 ● Performance conditions measured over 3 years ● 3 performance criteria: ● Business Net Income (40%) ● Return on Assets (40%) ● Total Shareholder Return (20%) 2014 Plan Conditions 2014 Grant 19
  20. 20. Settlement Agreement Signed in 2015 with Christopher Viehbacher 20 (in euro) Amounts due Comments Severance benefit 0 Loss of the entire benefit due to the absence of change of control or strategy Top-up pension 0 Loss of the entire benefit Settlement indemnity 2,961,000 Corresponding to his fixed and variable compensation for one year Confidentiality undertaking - 24 months Undertaking not to hire away previous employees - 18 months Undertaking to cooperate - In connection with ongoing or future legal procedures Non-compete 246,750/month Until June 30, 2015
  21. 21. Compensation Policy for the Chief Executive Officer ● Annual fixed compensation (gross amount) ● Annual variable compensation (gross amount) ● Equity compensation, options to subscribe for shares and performance shares ● Benefits in kind ● No Directors’ attendance fee ● Compensation payable upon on termination of office ● Severance benefit ● Top-up pension plan ● Non-compete undertaking 21
  22. 22. Elements of Compensation of Olivier Brandicourt in 2015 22 (in euro) Amounts due Comments Fixed compensation 1,200,000 Variable compensation Between 0% and 250% of his fixed compensation target set at 150% of his fixed compensation Benefits in kind Company car Options awards 220,000 options Performance shares 45,000 performance shares
  23. 23. Indemnification of Elements Lost by Olivier Brandicourt 23 (in euro) Amounts due Comments Exceptional compensation 2015 2,000,000 Upon his taking up office Exceptional compensation 2016 2,000,000 Payable in January 2016 and subject to a condition of continued employment Performance shares grant 66,000 performance shares granted in 2015 with a 3-year vesting period and subject to performance conditions Pension plan Attribution of ten years’ service
  24. 24. Post-Office Compensation Elements of Olivier Brandicourt 24 Severance Benefit Non-Compete Indemnity Pension Plan ● Departure is non-voluntary and linked to a change in control or strategy ● Contingent upon fulfillment of performance criteria ● Amounts limited to 24 months of fixed and variable compensation ● Agreed upon at hiring ● 12 months of fixed and variable compensation ● The amount of the termination benefit will be reduced by any amount received under this non-compete indemnity ● At the Board’s discretion ● Top-up pension may not exceed 37.5% of the reference compensation ● Progression rate 1.5% per year of service
  25. 25. Priorities & Launches Olivier Brandicourt Chief Executive Officer
  26. 26. Sanofi – Solid Assets for the Future 26 ● Good performance and financial discipline ● Many new products addressing unmet medical needs ● Strong positions in our business areas ● Leadership in Emerging Markets Wave of launches Diversified activities Innovation in R&D ● A successful open innovation model ● Balance between internal and external R&D Key challenges ● Bring differentiated solutions to physicians, patients and payors ● Focus our R&D efforts on the most significant innovations ● Be competitive in businesses where we are able to win ● Adapt our expenses and investments to opportunities and challenges● Strong balance sheet and financial discipline Performance financière
  27. 27. A Clear Set of Near-Term Priorities 27 Focus on launches of new medicines and vaccines Continue strong momentum in R&D Develop a deep understanding of the organization while strategic review is underway 1 2 3 Engage with our shareholders4
  28. 28. 28 Substantial Improvement of Returns from R&D 10 launches achieved 2007 - 2013 2014 - 2020 Up to 18 launches expected Dengue Vaccine PR5I Vaccine ® ® ® ®
  29. 29. Five Major New Products Launches since 2014 Recent Product Launches 29 Relapsing remitting multiple sclerosis Oral treatment for Type 1 Gaucher disease Chewable flea and tick treatment for dogs New basal long-acting insulin Rapid-acting inhaled insulin ®
  30. 30. ● Approved in the U.S. in February 2015 ● Launched in late March 2015 ● Toujeo® COACH patient support program ● Approved in Europe in April 2015 ● Launch in Germany and UK expected in Q2 2015 ● Launches in other countries expected in H2 2015 and early 2016 Toujeo® - Launch of our New Long-Acting Basal Insulin Underway 30 50%of patients not at goal despite treatments
  31. 31. Afrezza® - The Only Rapid-Acting Inhaled Insulin Launched in the U.S. in February 2015 ● Small portable inhaler ● Powder dissolves rapidly upon inhalation to the lung and delivers insulin quickly to the bloodstream ● No cleaning required ● No parts to be replaced ● Disposed of after 15 days of use An Innovative and Patient Friendly Device 31
  32. 32. Lemtrada® - An Important Treatment for Patients with Relapsing Remitting Multiple Sclerosis 32 (1) Genzyme holds the worldwide rights to alemtuzumab and has responsibility for its development and commercialízation in MS. Bayer Healthcare receives contingent payments based on global sales revenue. ● Genzyme has expanded its multiple sclerosis (MS) franchise ● Successful launch of Aubagio® ● FY 2014 sales of €433m ● Lemtrada® approved in more than 40 countries ● Launched in the U.S. in December 2014(1)2.3 million people live with MS worldwide
  33. 33. Expanding Genzyme’s Gaucher Franchise with Cerdelga® 33 ● Oral therapy eliminating infusion challenges ● Launched in the U.S. in September 2014 ● EU approval granted in January 2015 ● First launches in Germany and Nordic countries (1) Source: www.alliance-maladies-rares.org, www.orpha.net Gaucher Disease Prevalence 1/ 100 000(1)
  34. 34. Successful launch of NexGard®, a New Oral Anti-Parasitic for Dogs 34 ● First and only beef-flavored oral treatment in the U.S. ● Chewable tablet ● Eliminates fleas and ticks in dogs ● Launched in the U.S. and in France in early 2014
  35. 35. Praluent® (alirocumab) is developed in collaboration with Regeneron (1) Rolling submission process in some endemic countries in Asia initiated in January 2015 Three Products Submitted for Regulatory Review Key Regulatory Filings Dengue Vaccine Dengue Hypercholesterolemia Pediatric hexavalent vaccine (Polio, diphteria, tetanos, pertussis, Hib and hepatitis B) PR5I 6-in-1 U.S. U.S. Endemic markets(1) Europe 35
  36. 36. Praluent® - Targeting Hypercholesterolemic Patients at High Cardiovascular (CV) Risk with Unmet Needs 36 24 million patients with high CV risk(1) ● 12 positive Phase III studies(2) ● LONG TERM study(3) ● LDL-C(4) reduction of -62% compared to placebo ● 81% of patients reached LDL-C goal ● Regulatory reviews underway in the U.S. and Europe ● FDA decision expected on July 24, 2015 ● EU decision expected in Q1 2016 Praluent® (alirocumab) is developed in collaboration with Regeneron (1) 2016 estimates for U.S., EU Top 5 and Japan. Source: U.S. NHANES, Market Scan, IMS and Sanofi estimates. For further information, see presentation of Nov 20, 2014 (2) For further information, see press releases dated March 27, 2014, July 30, 2014, Nov 19, 2014 and January 9, 2015 (3) > 2,300 patients at high CV risk studied for 65 weeks (4) LDL-C: Low density lipoprotein cholesterol or “bad cholesterol”
  37. 37. Make Dengue the Next Vaccine-Preventable Disease (1) WHO, Dengue and severe dengue, factsheet no.117, updated in March 2014, available on http://www.who.int/mediacentre/factsheets/fs117/en/ (2) WHO, 2012, Global Strategy for Dengue Prevention and Control 37 A Breakthrough Innovation to Help Reduce the Burden of Dengue(2) Dengue Vaccine 100 million dengue cases per year(1) 37 ● Rolling submission for Dengue vaccine initiated in several endemic countries in Asia and Latin America ● First commercial batches produced and inventory build-up underway ● Up to 80 million lyophilized doses by end of 2015 ● First license anticipated before year-end 2015
  38. 38. Corporate Social Responsibility (CSR) A Strategy Placing the Patient at the Core of our Activity ● 4 strategic pillars ● PATIENT – Improving access to healthcare ● ETHICS – Acting ethically ● PEOPLE – Working together ● PLANET – Preserving the environment ● Committed to the United Nations Global Compact for 15 years ● External recognition of our CSR performance 38
  39. 39. Expanding Access to Healthcare and Ensuring Patient Safety In 2014, Sanofi’s access to healthcare programs resulted in: ● 270,000 healthcare professionals trained ● 89 million patients receiving diagnosis, vaccination, treatment, or disease self-management training ● 100 million people targeted by awareness campaigns 300 access to healthcare programs Partnerships with local players in 80 countries 39
  40. 40. Strong Partnerships to Help Patients Most in Need World Health Organization DNDi Foundation PATH MMV Bill and Melinda Gates Foundation Partnership fighting neglected tropical diseases ● $75m in financial support and drug donations ● Objective: Eliminating sleeping sickness by 2020 Commitment against malaria ● Training and education programs ● Development of an anti-malarial treatement not protected by patent, accessible for the neediest(1) ● Development of semi-synthetic artemisinin • 30 million people screened for sleeping sickness since 2001 • >180,000 patients treated • 7.7 million children educated about prevention(2) • >340 million treatments distributed since 2007 40 DNDi: Drugs for Neglected Diseases intitiative PATH: NGO specialised in health solutions MMV: Medicines for Malaria Venture (1) Coarsucam / Artesunate-Amodiaquine Winthrop (Asaq Winthrop®) (2) Via our «Schoolchildren against malaria » program
  41. 41. Our Focus Continues to Be on Excellence in Execution of Sanofi’s Strategy Adapt structure for future challenges and opportunities 3 Bring innovative products to market 2 Grow a global healthcare leader with synergistic platforms 1 Seize value-enhancing growth opportunities 4 2015 Priorities Maintain financial discipline Focus company resources on must-win priorities Ensure successful launches Strategy Sustain leadership positions 41
  42. 42. Progress in Research & Development Elias Zerhouni President, Global R&D
  43. 43. Significant Achievements in Phase III Familial Amyloid Cardiomyopathy Type 2 Diabeteslixisenatide (U.S.) revusiran Atopic Dermatitis Asthma dupilumab Sarilumab and dupilumab are developed in collaboration with Regeneron Patisiran and revusiran are developed in collaboration with Alnylam Type 2 Diabetes Familial Amyloid Polyneuropathy sarilumab LixiLan patisiran Rheumatoid Arthritis Key Advances of Phase III Projects 43
  44. 44. Sarilumab: An Investigational Monoclonal Antibody for Rheumatoid Arthritis (RA) Phase III ongoing ● First positive results in moderate to severe rheumatoid arthritis(2) ● Additional results expected in 2015 Sarilumab is developed in collaboration with Regeneron / IL6R –Interleukin-6 receptor: contributes to the inflammatory mechanism of rheumatoid arthritis (1) World Health Organization: Worldwide chronic rheumatic conditions (2) SARIL-RA-MOBILITY in patients resistant to methotrexate with moderate to severe RA sarilumab 70 million people estimated to be affected by RA(1) Fully human monoclonal antibody targeting IL6R ● Delivered subcutaneously ● Evaluated for use with pre-filled syringe or autoinjector Regulatory submissions expected ● Late 2015 in the U.S. ● Late 2016 in Europe and Japan 44
  45. 45. Dupilumab Offers Potential to Change Management of Patients Severely Affected by Various Allergic Diseases(1) Dupilumab is developed in collaboration with Regeneron / IL4Rα – Interleukin-4 alpha receptor (1) Atopic Dermatitis, Asthma, Nasal Polyposis, Eosinophilic Oesophagitis (2) Adapted from White Book on Allergy published in 2011, http://www.worldallergy.org/UserFiles/file/WAO-White-Book-on-Allergy_web.pdf (3) World Health Organization, http://www.who.int/mediacentre/factsheets/fs307/en IL‐4 IL‐4R c Type I Receptor Type II Receptor IL‐13 IL‐4R IL‐13R1 or Fully-human monoclonal antibody targeting IL4Rα ● Atopic Dermatitis ● Phase III ongoing ● Dupilumab received “Breakthrough Therapy” designation by FDA ● Asthma ● Phase III initiated ● Nasal Polyposis ● Start of Phase III expected in Q3 2015 ● Eosinophilic Oesophagitis ● Phase II ongoing Atopic Dermatitis 5 million people in the U.S. and Europe(2) Asthma 235-300 million people worldwide(3) 45
  46. 46. LixiLan: Fixed-Ratio Combination of Lantus® and Lyxumia® in a Single Daily Injection 46 Phase III ongoing ● LixiLan-O: study in patients insufficiently controlled on oral anti-diabetics ● LixiLan-L: study in patients not at goal on basal insulin Results expected in Q3 2015 Regulatory submissions expected ● Late 2015 in the U.S. ● Early 2016 in Europe ® + = Phase II results ● 84% of patients reached A1c goal < 7%(1) (1) Proof of concept study (323 patients) : a 24-week randomized, open-label trial comparing the efficacy and safety of insulin glargine/ lixisenatide fixed ratio combination versus insulin glargine, in type 2 diabetes inadequately controlled with metformin
  47. 47. Lyxumia® (lixisenatide) for Patients with Type 2 Diabetes Submitted in the U.S. Soon 47 GLP-1 receptor agonist approved in more than 50 countries Regulatory submission in the U.S. ● Expected in Q3 2015 ® study ● Positive results on the cardiovascular safety of lixisenatide in a high-risk population of adults with type 2 diabetes
  48. 48. Patisiran and revusiran developped in collaboration with Alnylam(1) 48 TTR: transthyretin is the disease-causing protein in TTR-mediated amyloidosis (1) Genyzme’s exclusive territory rights for the ALN-TTR programs concern the world, excluding North America and Western Europe patisiran siRNA inhibitor targeting transthyretin (TTR) ● Administered by intravenous injection Phase III ongoing in Familial Amyloid Polyneuropathy revusiran siRNA inhibitor targeting transthyretin (TTR) ● Administered by subcutaneous injection Phase III ongoing in Familial Amyloid Cardiomyopathy
  49. 49. 49 A Successful Model for Productive R&D Collaborations (1) REGN closing share price on Dec 31, 2014 was $410.25 (2) “Significant influence” under IFRS rules allows Sanofi to account for its investment in Regeneron using the Equity method from April 4, 2014 (3) ALNY closing share price on Dec 31, 2014 was $97.00 ● Access to highly productive therapeutic human antibody platform ● Market value of 22.3% ownership of €7,724m on Dec 31, 2014(1,2) ● World-class RNAi technology providing a platform for the development of medicines in rare genetic diseases ● Market value of 11.8% ownership of €728m on Dec 31, 2014(3) ● Novel adeno-associated virus (AAV) gene therapies for severe central nervous system disorders ● Upfront commitment of $100m and potential milestone payments of up to $745m 49
  50. 50. Vatelizumab(1) Multiple Sclerosis IL4/IL13 bi-specific mAb Idiopathic Pulmonary Fibrosis Anti-GDF8 mAb Sarcopenia Oral GCS Inhibitor Fabry Disease Anti-CD38 mAb Multiple Myeloma Olipudase alfa Niemann-Pick type B Neo GAA Pompe Disease C-MET kinase inhibitor Solid Tumors Anti-CXCR5 mAb Systemic Lupus Erythematosus GLP-1/GIP co-agonist Diabetes Phase II A New Wave of Potentially Transformative Drugs in Phase I and II Phase I 50 Anti-GDF8 mAb is developed in collaboration with Regeneron (1) Anti-VLA2 mAb
  51. 51. 2014 Results & Performance Jérôme Contamine Executive Vice President, Chief Financial Officer
  52. 52. 52 Solid Top and Bottom Line Growth Achieved in 2014 (1) On a reported basis, FY 2014 sales were up +2.5% and Business EPS was up +3.0% (2) With retroactive application of IFRIC 21 (3) Business EPS: Business earnings per share is defined as business net income divided by the weighted average number of shares outstanding. Business net income is defined as net income attributable to equity holders of Sanofi excluding (i) amortization of intangible assets, (ii) impairment of intangible assets, (iii) fair value remeasurement of contingent consideration liabilities related to business combinations, (iv) other impacts associated with acquisitions (including impacts of acquisitions on associates), (v) restructuring costs, (vi) other gains and losses (including gains and losses on disposals of non-current assets), (vii) costs or provisions associated with litigation, (viii) tax effects related to the items listed above as well as effects of major tax disputes, (ix) tax (3%) on dividends paid to Sanofi shareholders, (x) adjustment by the one-time additional yearly expense, unrelated to segment performance and recorded in 2014 on the income statement line selling and general expenses, following the final US IRS regulation related to annual Branded Prescription Drug Fee issued in July 2014. The items (v), (vi) and (vii) correspond to those reported in the income statement lines “Restructuring costs” and “Gains and losses on disposals, and litigation”. Net Sales Business EPS(3) 32 951M€ 33 770M€ 5,05€ 5,20€ (2) FY 2014FX Impact -€0.22 Incremental EPS at CER +€0.37 FY 2013FX Impact FY 2014FY 2013 +€1,611m -€792m Incremental Sales at CER €32,951m €33,770m €5.05 €5.20 (2) (2) +4.9% à TCC(1) +7.3% à TCC(1)
  53. 53. Strong Performance of Most Business Areas in 2014 53 Full-Year 2014 Sales by Business Areas CER: Constant Exchange Rates (1) Some products recorded in prescription pharmaceuticals in 2013 were transferred as Consumer Healthcare products and totaled €273m in FY 2013. When excluding this category change, sales of Consumer Healthcare grew +6.8% in FY 2014 at CER 9.9% 7.7% 6.1% 11.8% 21.5% Growth at CER Consumer Healthcare(1) Genzyme Animal Health Vaccines Diabetes €3,337m €2,604m €2,076m €3,974m €7,273m €11,300m +16.5% +24.3% +6.7% +7.2% +12.1% % of Sales 82.1% Pharmaceuticals €27,720m +4.4% 33.5% 4.2% Oncology Established Rx Brands €1,401m -2.5% -6.7% 5.3% Generics €1,805m +16.2%
  54. 54. Geographical Sales Mix in 2014 Growth at CER CER: Constant Exchange Rates (1) World excluding U.S., Canada, Western Europe, Japan, Australia, and New Zealand (2) Row: Japan, Canada, Australia and New Zealand (3) Excluding Generics in Brazil, LatAm grew +10.8% in FY 2014 at CER Well-Balanced Geographical Sales Split in 2014 with Solid Growth in Emerging Markets and the U.S. +5.0% +6.3% +21.1%+2.5% Emerging Markets Total Sales by Region (3) 54 33.6% 33.6% 23.3% 9.5% (1) €2,095m €2,541m €3,205m €3,363m Africa & Middle East Eastern Europe, Russia & Turkey Asia Latin America Emerging Markets €11,347m +9.3% U.S. €11,339m +8.2% Western EU €7,865m +0.0% Rest of the World €3,219m -7.2% (2)
  55. 55. 55 FY 2014 Business EPS Growth of +7.3% in Line with Financial Guidance €m 2014 2013 % Change (reported €) % Change (CER) Net sales 33,770 32,951 2.5% 4.9% Other revenues 339 355 -4.5% -5.1% Gross profit 23,080 22,323 3.4% 5.9% R&D (4,824) (4,770) +1.1% +1.9% SG&A (8,991) (8,603) +4.5% +6.6% Business operating income 9,449 9,323 1.4% 5.4% Effective tax rate 24.0% 24.0% - - Business net income 6,847 6,686 2.4% 6.7% Business EPS €5.20(2) €5.05 3.0% 7.3% CER: Constant Exchange Rates (1) With retroactive application of IFRIC 21 (2) FY 2014 Business EPS at CER was €5.42. The negative FX impact on Business EPS was €0.22 in 2014
  56. 56. Moderate Increase in Expenses Due to Investments in R&D and Launches of New Products 56 201420132013 2014 20142013 Cost of Sales (€m) R&D Expenses (€m) SG&A Expenses (€m) 32.7% of sales 14.3% of sales 26.6% of sales €8,991m €4,824m €11,029m€10,983m €4,770m €8,603m (1) With retroactive application of IFRIC 21 (1) (1) (1)
  57. 57. Net Income(1) Increased by 18.1% 57 €m 2014 2013(2) % Change (reported €) Business net income 6,847 6,686 2.4% Amortization of intangible assets (2,482) (2,914) Impairment of intangible assets 26 (1,387) Fair value remeasurement of contingent consideration liabilities (303) 314 Restructuring costs (411) (300) Other gains and losses, and litigation(3) and expenses arising from the impact of acquisitions on inventories 35 (8) Additional yearly expense related to US Branded Prescription Drug Fee(4) (116) Tax effect of items listed above 1,094 1,480 Other tax items(5) (110) (109) Restructuring costs of associates and joint ventures and expenses arising from the impact of acquisitions on associates and joint ventures, and share of items listed above attributable to non-controlling interests (190) (46) Net income attributable to equity holders of Sanofi 4,390 3,716 18.1% (1) Attributable to equity holders of Sanofi (2) Including impact of transition to IFRIC 21 (3) Day one profit on Alnylam shares presented in financial result (4) Annual fee related to 2013 sales following the final IRS regulation issued in July 2014 that has changed the timing of liability recognition and leads to a one-time “double” expense in the year of 2014 (5) Tax on dividends paid to shareholders of Sanofi
  58. 58. 58 58 (1) Including derivatives related to the financial debt +€290m at December 31st 2013 and +€302m at December 31st 2014 (2) Excluding Restructuring costs (3) Including €1,629m in Regeneron and €535m in Alnylam (4) Other including Restructuring costs Free Cash Flow (FCF) Up 12.3% in 2014 Net Debt (in €m) Other Net Debt Dec 31, 2014 -€1,205m Dividend -€3,676m Acquisitions, Licensing, Net of Disposals -€2,374m Share Repurchase -€1,801m Proceeds from Issuance of Shares €680m CapEx -€1,223m Net Cash from Operating Activities Net Debt Dec 31, 2013(1) (2) €6,043m €7,171m €8,471m (4) (1) FCF €7,248m (3)
  59. 59. Capital Investments Grew Slightly in 2014 59 Important Investments in our Industrial Capacity in 2014 2014 €1,223m 2013 €1,198m Industrial Affairs R&D Licences & Alliances Support Functions Animal Health, Genzyme & Vaccines(1) Pharmaceutical Operations (1) Excluding Industrial Affairs In 2015, CapEx should be between €1.8bn and €1.9bn, reflecting continued investment in biologic manufacturing capacity and capabilities CapEx Evolution and Breakdown in 2014 7% 12% 8% 2% 7% 64%
  60. 60. Our International Development Enables a Strong Presence in France 60 (1) Human and animal health (2) Companies with headquarters in France ● Of which 25% in France 27,000 employees on 48 sites #1 R&D investor accross all industries(2) >110,000 employees worldwide ● Of which 7% in France €2.5bn in 2014 €33.8bn global sales #1 producer of medicines and vaccines in France(1) €4.6bn industrial investments worldwide over 5 years ● Of which 38% in France €1.7bn over 5 years €4.8bn global R&D expenses ● Of which 45% in France €2.2bn in 2014
  61. 61. An Industrial Heritage in France Serving Patients Worlwide 61 ● Of which 24% in France ● 22 production sites ● 4 distribution platforms ● 85% of French production for export ● €12.9bn exportations Neuville-sur-Saône (Rhône, France) First dengue vaccine production site #1 industrial pharmaceutical player in France #4 exporter company of France 107 industrial sites worldwide
  62. 62. Strong Balance Sheet December 31, 2014 Assets Liabilities & Equity Net Debt (A-B) 7.2 In €bn Change vs. December 31, 2013 + 1.2 - 1.3 - 0.9 - 0.7 + 0.1 + 0.2 + 1.2 53.7 20.2 4.4 7.3 56.3 14.8 14.5 (1) Including interest rate and currency derivatives used to hedge debt 62 + 0.6 Intangible assets Other non-current assets WCR Net cash (B) Equity attributable Provisions and other non-current liabilities Financial debt (A)(1)
  63. 63. Outlook for 2015 - Investing in Future Growth Drivers 636363 Business EPS Growth FX impact on Business EPS Approximately +12%(2) Stable to slightly growing at CER(1) 2015 (1) FY 2014 Business EPS of €5.20 (2) Difference between variation on a reported basis and variation at CER, when applying March 2015 average exchange rates to the remaining three quarters of the year
  64. 64. FX Impact +€0.12 Incremental EPS at CER +€0.03 Q1 2014 Q1 2015 +€782m Incremental Sales at CER FX Impact Q1 2015Q1 2014 +€186m Q1 2015 - A Good Start to the Year 64 Net Sales Business EPS +2.6% at CER(1) €8,810m €1.17 €1.32 +2.4% at CER(1) (1) On a reported basis, Q1 2015 sales were up +12.3% and Business EPS was up +12.8% €7,842m
  65. 65. Paris ● SANOFI IR: 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 ● Regular meetings ● 6 shareholder meetings in France in 2014 ● Actionaria shareholder exhibition ● Individual Shareholders Committee Regular Information for our Shareholders 65

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