SANOFI PRESENTATION Brussels - March 27, 2018 Arnaud Delépine, Associate VP, Investor Relations
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SANOFI PRESENTATION
Brussels – March 27, 2018
Arnaud Delépine, Associate VP, Investor Relations
1
Forward-Looking Statements
This press release 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 labelling 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, Sanofi’s ability to benefit from external growth
opportunities and/or obtain regulatory clearances, risks associated with intellectual property and any related pending or future litigation and
the ultimate outcome of such litigation, trends in exchange rates and prevailing interest rates, volatile economic conditions, the impact of
cost containment initiatives 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, 2017. Other
than as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or
statements.
2
Sanofi: a Diversified Healthcare Leader
By activity By geographic region
Pharmacy Europe United States
€29,954M €9,525M €11,855M
2017 sales 85.4 % 27.2 % 33.8 %
€35,055M
Vaccines Emerging Markets Rest of the World
€5,101M €10,258M €3,417M
14.6 % 29.3 % 9.7 %
3
Continued Progress on Sanofi’s Strategic
Transformation
Reshape portfolio Execute launches Drive simplification Sustain innovation
• Acquisition of Bioverativ: • Dupixent®: launch success • Fitusiran: global rights • Cemiplimab et dupilumab(3):
strenghtens leadership in rare obtained in hemophilia(4) Acceleration and expansion of
• Kevzara® : steady share gains
diseases their development
in the U.S. • Focused organization
• Acquisition of Ablynx: expands delivered cost savings of • Acquisition of Bioverativ: brings
• Praluent® and Soliqua®
rare blood disorder franchise(1) 100/33/SuliquaTM: launches €1.5bn since 2015, one year late-stage R&D pipeline
ahead of plan
• Divestiture of EU Generics progressing slower than • Acquisition of Ablynx(1):
expected in 2018(2) originally anticipated transformative Nanobody®
technology platform
• Acquisition of Protein Sciences
in Vaccines
(1) Subject to the completion of the Ablynx acquisition announced on January 29, 2018 (3) In collaboration with Regeneron
(2) Following completion of the dialogue with social partners (4) Alnylam will receive royalties based on net sales of fitusiran products 4
Financial Performance in 2017
Sales: €35,055M
Gross margin
Gross Profit: €24,759M
70.6 %
Selling & R&D / Sales ration
R&D
general expenses
€5,472M 15.6 %
€10,058M
Business operating
Business operating income: €9,343M margin
26.7 %
Tax Financial expenses
€2,106M €273M
Net margin
Business net income: €6,964M
19.9 %
5
2017 EPS Broadly Stable In-Line with Expectations
Company Sales Business EPS
€35,055M €5.68
€33,821M €5.54
+0.5% -0.4%
at CER
at CER/CS
2016 2017 2016 2017
CER= Constant Exchange Rates
CS= Constant Structure, adjusted for BI CHC business, termination of SPMSD and others
6
2018 Financial Guidance
FY 2018
Business EPS +2% to +5% at CER(1,2,3)
FW impact on Business EPS -3% to -4%(4)
based on December 2017 average exchange rates
(1) Including the anticipated contribution from the recently announced acquisitions
(2) Compared to FY2017 and barring major unforeseen adverse events
(3) FY 2017 Business EPS of €5.54
7
(4) Difference between variation on a reported basis and variation at CER
An Organization Based on Five Global Business Units
Sanofi Pasteur
Vaccines
Sanofi Genzyme
Consumer Healthcare
Specialty Care
5
GBUs
General Medicines & Diabetes &
Emerging Markets Cardiovascular
8
Sanofi Genzyme – Speciality Care
Success of the New Immunology Franchise
Global Specialty Care
Franchise Sales
Immunology
Successful launch of Dupixent® 6,678 M€
19% of company sales
Kevzara® launch progressing well
Multiple Sclerosis
Strong, growing franchise
Rare Diseases +14.5%
Acquisitions strengthen leadership at CER
position
Immunology
Oncology Multiple Sclerosis
Significant expansion of development
Rare Diseases
pipeline
Oncology
2017
CER= Constant Exchange Rates 9
Dupixent®: Global Roll-Out in Atopic Dermatitis in 2018
2017 Launches and 2018 Expected Launches(2)
H1 2017 H2 2017 H1 2018 H2 2018
IGA 4 IGA 1
Pictures of a patient before and after treatment with
dupilumab (1) + 8 Emerging Market
countries
2017 Sales: €219M
(1) For illustration purposes only. Images are taken from one patient at baseline (left) and at 16 weeks (right). Results were not representative of all patients and individual results did vary
(2) Launched in the U.S. in April 2017, Germany in December 2017, the Netherlands in January 2018 and Denmark in February 2018 10Dupixent®: Global Launch Opportunities in Multiple Diseases
Growth Opportunities across Diseases,
Geographies and Demographics(1)
• Dupilumab expected to be a key growth
driver with significant commercial potential ILLUSTRATIVE
in multiple diseases(1) COPD
• FDA to review Dupixent® (dupilumab) as Allergies
potential treatment for moderate-to-severe Eosinophilic Esophagitis
asthma Nasal Polyposis
Pediatric AD
Adult/adolescent Asthma Japan/RoW
Adult/adolescent Asthma EU
Adult/adolescent Asthma U.S.
Adult AD in Japan and RoW
Adult AD in EU
Adult AD in U.S.
Time
(1) If approved in indications by applicable Health Authority
COPD= Chronic Obstructive Pulmonary Disease
AD= Atopic Dermatitis
11Kevzara® - A New Treatment for Patients with Moderately to
Severely Active Rheumatoid Arthritis
A major market with very important unmet needs
• 1.3 million people in the United States
• 2.9 million people in Europe
Marketed in the U.S. since May 2017 and currently being
launched in Europe
Kevzara® in collaboration with Regeneron 12Strong Growth of the Multiple Sclerosis Franchise in 2017
Sales Evolution
€2,041M
€1,720M +13.6%
at CER
+20.8%
at CER
€1,114M
+23.2%
at CER
1 295 M€
€467M
2014 2015 2016 2017
CER= Constant Echange Rates 13Sanofi Pasteur - Vaccines
Global Vaccines
Franchise Sales
Leading vaccines in 5 areas:
€5,101M
• Influenza 14.6% of company sales
• Pediatric Combinations
• Meningitis
• Adult Boosters +8.3%
at CER/CS
• Travelers and other vaccines for endemic
countries
Pediatric Combinations
A strenghtened pipeline with the
Influenza Vaccines
acquisition of Protein Sciences
Meningitis/Pneumo
Impact from the Dengvaxia® label Adult Boosters
update Travel/Endemic
Other
2017
CER= Constant Exchange Rates
CS= Constant Structure 14Protein Sciences Broadens Our Leading Flu Vaccines Portfolio With
Flublok®(1)
Growth driven by
product differentiation following age
Better efficacy
65y old
Fluzone HD TIV Fluzone HD QIV
Better efficacy -43%
50y old Cumulative confirmed Flu
Flublok cases compared with
Traditional QIV vaccines(2,3)
Change standard of care
6m old Fluzone TIV Fluzone QIV
VaxiGrip TIV VaxiGrip QIV
HD= High-Dose
(1) The Only FDA approved recombinant protein-based influenza vaccine approved for all adults 18 and older
(2) Source: Full prescribing information 15
(3) http://www.nejm.org/doi/full/10.1056/NEJMoa1608862Diabetes and Cardiovascular Diseases
Global DCV
Franchise Sales
€6,905M
19.7% of company sales
Diabetes Franchise
-0.6%
Global sales down 11.1 %
at CER in 2017
+11.6%
● U.S. diabetes sales decline -20.2%
partially offset by strong United States
performance in Emerging +0.1% Europe
Markets Emerging Markets
Rest of the World
2017
All growth rates at Constant Exchange Rates (CER) 16Odyssey Outcomes: Praluent® Significantly Reduces Risk of
Cardiovascular Events in High-Risk Patients
Praluent® reduced by 15%(1) the
risk of major adverse Approved in more than
cardiovascular events 60 countries
Reduction of all cause mortality by
15%(2)
A more pronounced effect
observed in patients with baseline Focus on patients with the
LDL-C levels ≥ 100 mg/dL greatest health risk
Praluent® (alirocumab) is developped in collaboration with Regeneron
(1) HR=0.85, IC : 0.78-0.93, p=0.0003
(2) HR=0.85; IC: 0.73-0.98, nominal p value = 0.026 17
For more information: consult the press release from March 10, 2018Sanofi is One of the Top 3 Players in Consumer Healthcare
Global CHC
Integration of the Boehringer Ingelheim CHC Franchise Sales
business being finalized
€4,832M
13.8 % of company sales
Allergies, Cough & Cold Pain
+2.1%
at CER/CS
Allergies
Digestive Nutritionals Pain
Digestive
Nutritionals
Other
2017
CER= Constant Exchange Rates
CS= Constant Structure 18General Medicines & Emerging Markets: Leading Position
in Emerging Countries Due to an Adapted Product Portfolio
2017 Global GEM Business Unit Sales
€14,048M
40% of company sales
Emerging Markets(1)
Sanofi ranks #1(2)
Supported by strong growth of sales in China:
€2.2Bn : +15.1%(3)
Established Products
Accounting for nearly one third of company sales
(1) World excluding U.S., Canada, Europe, Japan, South Korea, Australia, New Zealand and Puerto Rico
(2) Market share (without Vaccines), IMS MIDAS | FY 2017
(3) At Constant Exchange Rates and Constant Structure
19Sanofi is #1 in Emerging Markets
More than 7 billion people
Aging population
Rapid emergence of a middle class
Improving access to healthcare
Growing GDP health expenses
Emerging Markets up +6.0% in FY 2017
20Strategically and Financially Compelling M&A to Enhance
Sanofi’s Growth Profile and Create Value
Build Immediate
Value Strengthen
Value (1) Leadership EPS
Creation Pipeline (2)
Position Accretion
Transforming the lives of
people with hemophilia, cold
agglutinin disease and other $11.6 bn
rare blood disorders
Nanobody technology to
develop therapeutics in
areas of high unmet medical
€3.9 bn ~
need
(1) ROIC>WACC in 3 to 5 years
(2) Business EPS is a non-GAAP financial measure (see appendix to Sanofi quarterly financial release definitions) 21Bioverativ: a Leading Hemophilia Portfolio, a New Platform in
Other Rare Blood Disorders
U.S. biotechnology company, ~450 employees
2017 Revenues: $1,168M +31.7%
Leadership position in the large hemophilia market with two
marketed products:
(1) (2)
R&D : pipeline includes candidates in cold agglutinin disease,
hemophilia and other rare blood disorders
Complementary fit with fitusiran; maximizes commercial
potential of current and future products
(1) Treatment in hemophilia A
(2) Treatment in hemophilia B 22Ablynx: Provides a Leading Platform Technology and
Enhances our Late-Stage Pipeline
1 Innovative Nanobody® platform strengthens Sanofi’s multi-targeting R&D strategy
2 Caplacizumab expands rare blood disorders franchise following Bioverativ deal
Complementary mid-stage and pre-clinical programs: hematology, inflammation,
3 immuno-oncology, respiratory diseases
4 Expected to be neutral to Business EPS in 2018 and 2019
23Sanofi Research and Development
70
projects in development for NMEs potential submissions in
7
or additional indications(1) next 15 months
7 >10
NME and Vaccine pivotal study starts in
approvals since 2015(2) next 12 months
(1) Includes 4 Phase 1 products and 1 Phase 2 product for which Sanofi has opt-in rights but has not exercised these rights
(2) Adlyxin®, Dengvaxia®, Dupixent®, Kevzara®, Praluent®, Soliqua™ /Suliqua™ 100/33, Toujeo® 247 Potential Submissions(1) for New Products or Additional
Indications Over Next 15 Months
Planned Submissions
Men Quad TT
sBLA, 2nd generation
sBLA, AD, meningococcal
NDA, ODYSSEY adolescents ACYW conjugate
Type 1 Diabetes CVOT 12-New Wave of Pivotal Study Starts Expected in 2018
dupilumab(1) • COPD isatuximab • 1L MM SCT eligible
Anti-IL4Rα mAb • Eosinophilic Esophagitis Anti-CD38 mAb • 1L MM SCT ineligible
venglustat(2) • Autosomal dominant
polycystic kidney
alemtuzumab • Primary Progressive MS
Oral GCS inhibitor
disease (ADPKD)
SAR425899
GLP-1/GCR • Obesity
cemiplimab(1) • 1st line NSCLC
dual agonist
efpeglenatide(3)
Once-weekly • Type 2 Diabetes
mavacamten(4) • Obstructive Hypertrophic
GLP-1RA Cardiomyopathy
COPD= Chronic Obstructive Pulmonary Disease; NSCLC= Non-Small Cell Lung Cancer (3) Collaboration with Hanmi
(1) Collaboration with Regeneron (4) Collaboration with Myokardia. Sanofi will lead ex-U.S. regulatory and commercial 26
(2) Phase 2/3 registrational study activities to mavacamten program where it has ex-U.S. commercialization rightsSanofi Share Performance vs. Pharma Company Peers
since January 2018, in Euro
Stock Performance since January 1st, 2018 in €
CAC40: -1.4%
13.8%
Median Average
-5.9% -4.1% 5.6%
-0.1%
-2.0%
-3.3%
-4.8%
-5.9%
-8.1%
-9.5% -9.3% -9.3% -9.0%
-11.1%
Source: Bloomberg 27Sector Rotation from Defensive to More Cyclical Sectors
14.1% 14.8%
9.5%
Pharma
4.3%
3.6%
1.1%
-3.3%
-5.8%
-8.0%
S&P Sectors since Sept 29, 2017 – source Nasdaq – as of March 1, 2018 28The Dividend is a Core Part of our Value Proposition
to Shareholders
Evolution of Dividend
€2.96 €3.03
€2.65 €2.77 €2.80 €2.85 €2.93
€2.40 €2.50
€2.20
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
• Proposed dividend of €3.03 per share for 2017 financial year(1)
• 24th consecutive year of dividend increase
(1) Submitted for approval by shareholders at the Annual General Meeting on May 2, 2018 29An Active Communication with our Individual Shareholders
Your publications
SlideShare
• Shareholder Handbook
• Letter to Shareholders
• Fact Sheet YouTube
LinkedIn
Online information
• www.sanofi.com/shareholders
• Sanofi IR mobile app Twitter
• Social Media
30Meetings with Shareholders
Meetings planned in 2018 Shareholders Committee
Bruxelles
Reims
Paris
Nancy
Nantes
Lyon
Nice
• 4 events planned in 2018
• Annual General Meeting 2018 • Visit of Marcy-l’Etoile Sanofi Pasteur industrial site
• May 2: Paris
• Meetings with management and the Chairman
• Salon Actionaria 2018
• November 22 - 23: Paris
31Sanofi: Life is a Health Journey
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