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SANOFI PRESENTATION Brussels – March 27, 2018 Arnaud Delépine, Associate VP, Investor Relations 1
SANOFI PRESENTATION Brussels – March 27, 2018
Arnaud Delépine, Associate VP, Investor Relations
1
Forward-Looking Statements
2
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.
Sanofi: a Diversified Healthcare Leader
3
By geographic region By activity
Vaccines
€5,101M 14.6 %
Pharmacy
€29,954M 85.4 %
United States
€11,855M 33.8 % 2017 sales
€35,055M
Europe
€9,525M 27.2 %
Emerging Markets
€10,258M 29.3 %
Rest of the World
€3,417M 9.7 %
Continued Progress on Sanofi’s Strategic Transformation
4
Sustain innovation
• Cemiplimab et dupilumab(3):
Acceleration and expansion of
their development
• Acquisition of Bioverativ: brings
late-stage R&D pipeline
• Acquisition of Ablynx(1):
transformative Nanobody®
technology platform
Drive simplification
• Fitusiran: global rights
obtained in hemophilia(4)
• Focused organization
delivered cost savings of
€1.5bn since 2015, one year
ahead of plan
Reshape portfolio
• Acquisition of Bioverativ:
strenghtens leadership in rare
diseases
• Acquisition of Ablynx: expands
rare blood disorder franchise(1)
• Divestiture of EU Generics
expected in 2018(2)
• Acquisition of Protein Sciences
in Vaccines
Execute launches
• Dupixent®: launch success
• Kevzara® : steady share gains
in the U.S.
• Praluent® and Soliqua®
100/33/SuliquaTM: launches
progressing slower than
originally anticipated
(1) Subject to the completion of the Ablynx acquisition announced on January 29, 2018
(2) Following completion of the dialogue with social partners
(3) In collaboration with Regeneron
(4) Alnylam will receive royalties based on net sales of fitusiran products
Financial Performance in 2017
5
Sales: €35,055M
Gross Profit: €24,759M
R&D
€5,472M
Selling &
general expenses
€10,058M
Business operating income: €9,343M
Tax
€2,106M Financial expenses
€273M
Business net income: €6,964M
Gross margin
70.6 %
R&D / Sales ration
15.6 %
Business operating
margin
26.7 %
Net margin
19.9 %
2017 EPS Broadly Stable In-Line with Expectations
6 CER= Constant Exchange Rates
CS= Constant Structure, adjusted for BI CHC business, termination of SPMSD and others
Company Sales Business EPS
2017
€35,055M
2016
€33,821M
+0.5% at CER/CS
€5.68
2017 2016
€5.54
-0.4% at CER
2018 Financial Guidance
7
Business EPS
-3% to -4%(4)
based on December 2017 average exchange rates
+2% to +5% at CER(1,2,3)
FY 2018
FW impact on Business EPS
(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
(4) Difference between variation on a reported basis and variation at CER
An Organization Based on Five Global Business Units
8
Sanofi Pasteur Vaccines
Sanofi Genzyme Specialty Care
Diabetes &
Cardiovascular
General Medicines &
Emerging Markets
Consumer Healthcare
5
GBUs
Sanofi Genzyme – Speciality Care Success of the New Immunology Franchise
9
Global Specialty Care
Franchise Sales
6,678 M€ 19% of company sales
+14.5% at CER
Immunology
Multiple Sclerosis
Rare Diseases
Oncology
2017
Immunology
Successful launch of Dupixent®
Kevzara® launch progressing well
Multiple Sclerosis
Strong, growing franchise
Rare Diseases
Acquisitions strengthen leadership
position
Oncology
Significant expansion of development
pipeline
CER= Constant Exchange Rates
Dupixent®: Global Roll-Out in Atopic Dermatitis in 2018
10
Pictures of a patient before and after treatment with
dupilumab (1)
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
+ 8 Emerging Market
countries
2017 Launches and 2018 Expected Launches(2)
H1 2017
H2 2017
H1 2018
H2 2018
IGA 4 IGA 1
Dupixent®: Global Launch Opportunities in Multiple Diseases
11
(1) If approved in indications by applicable Health Authority
COPD= Chronic Obstructive Pulmonary Disease
AD= Atopic Dermatitis
• Dupilumab expected to be a key growth
driver with significant commercial potential
in multiple diseases(1)
• FDA to review Dupixent® (dupilumab) as
potential treatment for moderate-to-severe
asthma
Growth Opportunities across Diseases,
Geographies and Demographics(1)
Adult/adolescent Asthma U.S.
Adult AD in U.S.
Nasal Polyposis
Eosinophilic Esophagitis
Adult AD in EU
Adult AD in Japan and RoW
Adult/adolescent Asthma EU
Adult/adolescent Asthma Japan/RoW
Pediatric AD
Allergies
COPD
ILLUSTRATIVE
Time
Kevzara® - A New Treatment for Patients with Moderately to Severely Active Rheumatoid Arthritis
12 Kevzara® in collaboration with Regeneron
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
Strong Growth of the Multiple Sclerosis Franchise in 2017
13
Sales Evolution
1 295 M€
CER= Constant Echange Rates
+13.6% at CER
+23.2% at CER
2014 2015 2016 2017
€1,720M
€1,114M
€467M
+20.8% at CER
€2,041M
Sanofi Pasteur - Vaccines
14
Leading vaccines in 5 areas:
• Influenza
• Pediatric Combinations
• Meningitis
• Adult Boosters
• Travelers and other vaccines for endemic
countries
A strenghtened pipeline with the
acquisition of Protein Sciences
Impact from the Dengvaxia® label
update
Global Vaccines
Franchise Sales
€5,101M 14.6% of company sales
Pediatric Combinations
Influenza Vaccines
Meningitis/Pneumo
Adult Boosters
Travel/Endemic
Other
+8.3% at CER/CS
2017
CER= Constant Exchange Rates
CS= Constant Structure
Protein Sciences Broadens Our Leading Flu Vaccines Portfolio With Flublok®(1)
15
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
(3) http://www.nejm.org/doi/full/10.1056/NEJMoa1608862
65y old
50y old
6m old
Change standard of care
Growth driven by
product differentiation following age
Flublok
Fluzone HD QIV Fluzone HD TIV
Better efficacy
Fluzone QIV
VaxiGrip QIV
Fluzone TIV
VaxiGrip TIV
-43% Cumulative confirmed Flu
cases compared with
Traditional QIV vaccines(2,3)
Better efficacy
Diabetes and Cardiovascular Diseases
16
Global DCV
Franchise Sales
€6,905M 19.7% of company sales
Diabetes Franchise
Global sales down 11.1 %
at CER in 2017
● U.S. diabetes sales decline
partially offset by strong
performance in Emerging
Markets
United States
Europe
Emerging Markets
Rest of the World
-20.2%
+0.1%
+11.6%
-0.6%
All growth rates at Constant Exchange Rates (CER)
2017
Odyssey Outcomes: Praluent® Significantly Reduces Risk of Cardiovascular Events in High-Risk Patients
17
Approved in more than 60 countries
Focus on patients with the greatest health risk
Praluent® reduced by 15%(1) the
risk of major adverse
cardiovascular events
Reduction of all cause mortality by
15%(2)
A more pronounced effect
observed in patients with baseline
LDL-C levels ≥ 100 mg/dL
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
For more information: consult the press release from March 10, 2018
Integration of the Boehringer Ingelheim CHC
business being finalized
Sanofi is One of the Top 3 Players in Consumer Healthcare
18
Global CHC
Franchise Sales
€4,832M 13.8 % of company sales
Pain
Digestive
Nutritionals
Other
Allergies
2017
+2.1% at CER/CS
Allergies, Cough & Cold Pain
Nutritionals Digestive
CER= Constant Exchange Rates
CS= Constant Structure
General Medicines & Emerging Markets: Leading Position in Emerging Countries Due to an Adapted Product Portfolio
19
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
2017 Global GEM Business Unit Sales
€14,048M
40% 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
Sanofi is #1 in Emerging Markets
20
Emerging Markets up +6.0% in FY 2017
More than 7 billion people
Aging population
Rapid emergence of a middle class
Improving access to healthcare
Growing GDP health expenses
Strategically and Financially Compelling M&A to Enhance Sanofi’s Growth Profile and Create Value
21
Value Value
Creation
Build
Leadership
Position
Strengthen
Pipeline
Immediate
EPS
Accretion
Transforming the lives of
people with hemophilia, cold
agglutinin disease and other
rare blood disorders
$11.6 bn
€3.9 bn
Nanobody technology to
develop therapeutics in
areas of high unmet medical
need
~
(1) (2)
(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)
Bioverativ: a Leading Hemophilia Portfolio, a New Platform in Other Rare Blood Disorders
22 (1) Treatment in hemophilia A
(2) Treatment in hemophilia B
U.S. biotechnology company, ~450 employees
2017 Revenues: $1,168M +31.7%
Leadership position in the large hemophilia market with two
marketed products:
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) (2)
Ablynx: Provides a Leading Platform Technology and Enhances our Late-Stage Pipeline
23
Innovative Nanobody® platform strengthens Sanofi’s multi-targeting R&D strategy 1
Caplacizumab expands rare blood disorders franchise following Bioverativ deal 2
Complementary mid-stage and pre-clinical programs: hematology, inflammation,
immuno-oncology, respiratory diseases 3
Expected to be neutral to Business EPS in 2018 and 2019 4
Sanofi Research and Development
24
70 projects in development for NMEs
or additional indications(1)
7 potential submissions in
next 15 months
7 NME and Vaccine
approvals since 2015(2)
pivotal study starts in next 12 months
>10
(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®
7 Potential Submissions(1) for New Products or Additional Indications Over Next 15 Months
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BLA, RRMM BLA,
metastatic
CSCC
NDA,
Type 1 Diabetes
sBLA,
Nasal Polyps
Planned Submissions
cemiplimab isatuximab
sBLA,
ODYSSEY
CVOT
2nd generation
meningococcal
ACYW conjugate
vaccine
Men Quad TT
sBLA,
AD,
adolescents
12-<18y
dupilumab
S1 2018 S2 2018 S1 2019
(1) Number of submissions determined by first submission to a regulatory authority in a country; subsequent submissions to other global regulatory authorities are not included in the
count of 7 potential submissions
New Wave of Pivotal Study Starts Expected in 2018
26
alemtuzumab • Primary Progressive MS
• COPD
• Eosinophilic Esophagitis
dupilumab(1)
Anti-IL4Rα mAb
• Autosomal dominant polycystic kidney disease (ADPKD)
venglustat(2)
Oral GCS inhibitor
isatuximab Anti-CD38 mAb
• 1L MM SCT eligible
• 1L MM SCT ineligible
cemiplimab(1)
• 1st line NSCLC
mavacamten(4) • Obstructive Hypertrophic
Cardiomyopathy
COPD= Chronic Obstructive Pulmonary Disease; NSCLC= Non-Small Cell Lung Cancer
(1) Collaboration with Regeneron
(2) Phase 2/3 registrational study
(3) Collaboration with Hanmi
(4) Collaboration with Myokardia. Sanofi will lead ex-U.S. regulatory and commercial
activities to mavacamten program where it has ex-U.S. commercialization rights
SAR425899 GLP-1/GCR dual agonist
• Obesity
efpeglenatide(3)
Once-weekly GLP-1RA
• Type 2 Diabetes
Source: Bloomberg
Sanofi Share Performance vs. Pharma Company Peers since January 2018, in Euro
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Stock Performance since January 1st, 2018 in €
CAC40: -1.4%
-9.3% -9.5% -11.1%
-9.3% -8.1%
-9.0%
-5.9% -4.8%
-3.3% -2.0%
-0.1%
5.6%
13.8% Median
-5.9% Average
-4.1%
S&P Sectors since Sept 29, 2017 – source Nasdaq – as of March 1, 2018
Sector Rotation from Defensive to More Cyclical Sectors
28
14.1% 14.8%
9.5%
4.3% 3.6%
1.1%
-3.3%
-5.8%
-8.0%
Pharma
The Dividend is a Core Part of our Value Proposition to Shareholders
Evolution of Dividend
• Proposed dividend of €3.03 per share for 2017 financial year(1)
• 24th consecutive year of dividend increase
29 (1) Submitted for approval by shareholders at the Annual General Meeting on May 2, 2018
€2.20 €2.40 €2.50 €2.65 €2.77 €2.80 €2.85 €2.93 €2.96 €3.03
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
An Active Communication with our Individual Shareholders
Your publications
• Shareholder Handbook
• Letter to Shareholders
• Fact Sheet
Online information
• www.sanofi.com/shareholders
• Sanofi IR mobile app
• Social Media
YouTube
SlideShare
30
• Annual General Meeting 2018
• May 2: Paris
• Salon Actionaria 2018
• November 22 - 23: Paris
Meetings with Shareholders
Shareholders Committee
• 4 events planned in 2018
• Visit of Marcy-l’Etoile Sanofi Pasteur industrial site
• Meetings with management and the Chairman
Meetings planned in 2018
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Nantes
Paris
Bruxelles
Reims
Nancy
Lyon
Nice
Sanofi: Life is a Health Journey
32
