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Q1 2009 Earning Report of Sanofi Aventis

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1 Q1 2009 Results April 29, 2009
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Page 1: Q1 2009 Earning Report of Sanofi Aventis

1

Q1 2009 ResultsApril 29, 2009

Page 2: Q1 2009 Earning Report of Sanofi Aventis

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 financial and product development projections and estimates and their underlying assumptions,

statements regarding plans, objectives, intentions and expectations with respect to future events, operations, products and services, 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-aventis’

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-aventis, 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 EMEA, 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 products candidates, the absence of guarantee that the products candidates if approved will be commercially successful, the future approval and commercial success of

therapeutic alternatives as well as those discussed or identified in the public filings with the SEC and the AMF made by sanofi-aventis, including those listed under “Risk Factors”

and “Cautionary Statement Regarding Forward-Looking Statements”

in sanofi-aventis’

annual report on Form 20-F for the year ended December 31, 2008.Other than as required by applicable law, sanofi-aventis does not undertake any obligation to update or revise any forward-looking information or statements.

Page 3: Q1 2009 Earning Report of Sanofi Aventis

3

Agenda

Q1 2009 AchievementsChris Viehbacher, Chief Executive Officer

R&D Portfolio Update Marc Cluzel, Senior VP, Research & Development

Q1 2009 Market PerformanceHanspeter Spek, Executive VP, Pharmaceutical Operations

Q1 2009 Financial PerformanceJérôme Contamine, Executive VP, Chief Financial Officer

Q&A Session

Page 4: Q1 2009 Earning Report of Sanofi Aventis

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Q1 2009 Achievements

Chris ViehbacherChief Executive Officer

Page 5: Q1 2009 Earning Report of Sanofi Aventis

5

Delivering

a Good Start into

the Year

Q1 2009Strong

underlying

sales performance(1)

of flagship

products

and vaccines

+3.0% for Pharmaceuticals

+9.1% for Vaccines

Continued cost management

Good growth

of adjusted

EPS(2)

+9.8% at

constant exchange rates (CER)

+16.8% on a reported

basis

Transforming

initiatives well

underway

Acquisitions in line with

strategy

Positive FDA Ad Com for Multaq®

(dronedarone)

(1) Growth is on a constant structure and exchange rates basis(2) Excluding selected items

Page 6: Q1 2009 Earning Report of Sanofi Aventis

6

(1) Worldwide presence for Plavix®/Iscover® and Aprovel®/Avapro® /Karvea® includes sales consolidated by sanofi-aventis and BMS(2) Sanofi Pasteur MSD is a 50/50 joint venture with Merck(3) Merial is a 50/50 joint venture with Merck(4) Including the acquisition of Symbion * Sales figures correspond to Q1 2009 sales and growth is at constant exchange rate

A Diversified

Healthcare

Company with

Several

Growth

Platforms*

Animal Health(3)

Sales: $684m, +2.0% (non-consolidated)

GenericsSales: €93m, +18.3%

OTC / OTX(4)

Sales: €378m, +9.9%

Vaccines(2)

Sales: €627m, +9.1%

Sales: €254m, -8.7% (non-consolidated)

Sales: €762m,

+1.3%

Worldwide

presence(1)

€1,699m, +8.6%

Sales: €534m,

+8.3%

Sales: €747m,

+27.1%

Worldwide

presence(1)

€507m, +6.1%

Page 7: Q1 2009 Earning Report of Sanofi Aventis

7

5.49

5.00

5.10

5.20

5.30

5.40

5.50

5.60

5.70

5.80

5.90

6.00

6.10

2008 2009

Guidance for FY 2009 Reiterated

In 2009, sanofi-aventis expects growth of adjusted EPS excluding selected items(1)

of at least 7%at constant exchange rates(2),

barring major adverse events

(1) FY 2008 adjusted EPS excluding selected items: €5.49(2) Based on actual 2008 average exchange rates for all currencies

Adjusted EPS excluding selected items (€)

At

least +7%

Page 8: Q1 2009 Earning Report of Sanofi Aventis

8

Rolling-out our

Three-Pronged

Strategy

Increase innovation

in R&D

Transforming Program to ensure

sustainable, profitable growth and improved

risk

profile

Adapt our

company

to future challenges

Pursue external

growth

opportunities

Page 9: Q1 2009 Earning Report of Sanofi Aventis

9

BiPar

acquisition illustrating strong commitment to oncology

Novel tumor- selective approach

BSI-201, potential first-in-class compound in Phase II for TNBC(1)

New data at ASCO

Important Milestones

Reached

in R&D

Fulfilling a clear unmet patient need in AF

Creating value for payors

Positive FDA Ad Com on March 18

Potential EMEA decision and U.S. launch in Q3 2009

Thorough and rigorous process

Moving high priority projects forward

Discontinuing 4 Phase II and 4 Phase III projects

Freeing up resources for external R&D

PORTFOLIOREVIEWR&D

(1) Triple Negative Breast Cancer

Page 10: Q1 2009 Earning Report of Sanofi Aventis

10

Leadership reinforced

in emerging

marketsAdditional

stream

of sales growth

complementing

our

branded

business

Improving

access

to medicines

for a wider

populationOur priority is to expand search for licensing or acquisition deals maintaining a disciplined approach

Three

Bolt-on

Acquisitions to Strengthen

our

Growth

Platforms

2008 Sales: ~€736mLeader in branded generics in CEE, Turkey and Russia Portfolio of more than

400 products

2008 Sales: ~€153m#1 generic company in BrazilPortfolio of 127 generic products

2008 Sales: ~€26mA leading generic company in MexicoPortfolio of > 50 active ingredients

Page 11: Q1 2009 Earning Report of Sanofi Aventis

11

Key Achievements

to date & Next

Milestones

Good Q1 Results -

On track to deliver FY 2009 guidance

Appointment of new Chief Financial Officer

New organization set by Chief Strategic Officer

New external R&D deals (eg. BiPar)

Disciplined investments in Generics regional growth platforms

Completion of R&D pipeline review

FDA decision for Multaq®

(dronedarone) expected in Q2 2009

Emerging Markets Thematic Investor Seminar in Paris on July 2

Q2 Results and Roadmap for Transforming Program in July 29

Page 12: Q1 2009 Earning Report of Sanofi Aventis

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R&D Portfolio Update

Marc CluzelSenior VP, Research & Development

Page 13: Q1 2009 Earning Report of Sanofi Aventis

13

Conduct a detailed objective review of our R&D pipelinePortfolio Prioritization1

Decision Making Redefine

investment

decision

making

process2

Partnerships Reallocate

resources

to external

R&D partnerships3

Strategy Focus R&D strategy on key technologies and disease areas4

Organization Implement new R&D organization to encourage innovation5

R&D Transformation Process is Ongoing

Page 14: Q1 2009 Earning Report of Sanofi Aventis

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Rigorous and Thorough Portfolio Review

Complete portfolio review covering Research & Development

Multidimensional views aimed at understanding the unique value proposition for each compound

Portfolio evaluated across 4 key dimensions:

Engaged cross-functional internal expertise while leveraging neutral external party to run the process

Going forward, a complete R&D pipeline review will be conducted regularly by newly-created “Portfolio Management Group”

Degree of innovation

Extent of patient need addressed

Technical & commercial

risk

Overall value

/ Return on investment

Page 15: Q1 2009 Earning Report of Sanofi Aventis

15

AVE0657

(sleep apnea)

SSR180575

(diabetic polyneuropathies)

AVE1642(1)

(breast cancer)

Melanoma

vaccine

4 Phase II and 4 Phase III projects discontinued since Feb 11, 2009

6 Phase I projects also discontinued in the recent portfolio review

Rationale for termination included:Lack of efficacy

Safety findings

Limited value proposition

4 compounds with an upcoming Go/No-Go milestone

Reassessment of compounds to be performed once milestones reached

Outcome

of Portfolio Review

on Clinical

Projects

4 Phase II 4 Phase III

TroVax®(2)

(cancer)

Saredutant

(depression)

AVE5530

(hypercholesterolemia)

Unifive™

(DTP-HepB-Hib)

(1) AVE 1642: project returned to ImmunoGen, Inc.(2) TroVax®: project returned to Oxford BioMedica Plc

Project NameProject Name Next MilestoneNext Milestone

AVE1625

(schizophrenia) xaliproden

(peripheral sensory neuropathies)

idrabiotaparinux

(DVT/PE and AF)

West Nile vaccine

4-6 months

4-6 months

6 months

6-9 months

Page 16: Q1 2009 Earning Report of Sanofi Aventis

16

Main Achievements

in R&D Pipeline since

Feb

11

BSI-201, PARP inhibitor, in Phase II in triple negative breast cancer*SAR110894, H3 antagonist, entering Phase I in Alzheimer'sSAR164877, anti-NGF mAb, entering Phase I in pain management

3 New Projects in Clinical

Development

Plavix®

combo with ASA re-submitted in EUFlu new formulation (Fluzone®

High Dose IM) in the U.S.

2 New Regulatory

Submissions

Apidra®

SoloSTAR®

in the U.S.Lovenox®

for VTE prevention in abdominal surgery in JapanApidra®

and Apidra®

SoloSTAR®

in JapanIntanza®

/ IDflu®

in EUEmerflu®

in Australia

5 New Regulatory Approvals

*BSI-201: project from BiPar Sciences, Inc.

Page 17: Q1 2009 Earning Report of Sanofi Aventis

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Development portfolio balanced across phases and therapeutic areas*

Metabolic Disorders 2 0 1 0 3

Cardiovascular 1 1 1 1 4

Central Nervous System 5 4 1 1 11

Oncology 1 1 6 0 8

Thrombosis 0 1 2 0 3

Internal Medicine 2 2 0 0 4

Vaccines 4 6 7 1 18

TOTAL 15 15 18 3 51

R&D Pipeline Summary Table on April 29 New Molecular Entities and Vaccines

TOTAL

Regist

ration

Phase I

II

Phase I

I

Phase I

30 21

New Molecular Entities

& Vaccines

33

*See appendices for list of R&D pipeline projects

Page 18: Q1 2009 Earning Report of Sanofi Aventis

18

R&D Pipeline Characteristics

49% of the development portfolio (from Phase I to registration) in biologics and 27% from external partnerships

73%

27%

Partnerships / collaborations

Internal

51%35%

Chemical

Entities

Other

Biologics

14%

Vaccines

Page 19: Q1 2009 Earning Report of Sanofi Aventis

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Evolution on R&D Spend

in 2009

Full impact of large Phase III studies initiated in 2008 and before expected in 2009

Increased spend in R&D for Vaccines

New R&D deals (eg. BiPar)

Termination of clinical projects announced today

Expecting a low single digit decline of the R&D spend at constant exchange rates in 2009

R&D Pharmaceuticals

€3,246m

R&D Vaccines

Post-Mkg

Studies

Regulatory

Pharmacovigilance

Industrial

Split of R&D Spend

in 2008

Total R&D Spend

in 2008

€4,575m

Page 20: Q1 2009 Earning Report of Sanofi Aventis

20

Aflibercept -

A Unique Anti-Angiogenic

Agent

Aflibercept

(VEGF Trap): a fusion protein blocking VEGF, a well-

validated anti-angiogenic

approachBroad oncology development program in combination with common chemotherapy regimensFour Phase III studies ongoing

All studies ~ 50% enrolledInitial data expected in 2010

Two phase II studies ongoingData expected mid-2009 in symptomatic malignant ascitesCombination trial with FOLFOX in 1st

line metastatic colorectal cancer recently initiated

Study Indication / DesignTargeted

# of

patients

Data

expected

VELOUR

2nd

line metastatic colorectal cancer

+ FOLFIRI (folinic

acid / 5-FU / irinotecan)

1200 2010

VANILLA1st

line metastatic pancreatic cancer

+gemcitabine630 2010

VITAL2nd

line metastatic non-

small cell lung cancer

+Taxotere®900 2010

VENICE

1st

line metastatic hormone resistant

prostate cancer+Taxotere®

/ prednisone

1225 2011

Four Phase III studies

ongoing

FOLFOX: (folinic acid / 5-FU / oxaliplatin)

Page 21: Q1 2009 Earning Report of Sanofi Aventis

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BSI-201 -

Potential to Become a Platform Therapy in Oncology

DNA-repair inhibition: a new “validated”

oncology target BSI-201: potential first-in-class and best-in-class PARP(1)

inhibitorTriple Negative Breast Cancer(2)

identified as the lead indication~ 20% of all breast cancersPoor prognosis and no specific treatment guidelines

Randomized phase IIb

study ongoingInterim results(3)

showed no significant toxicities attributable to BSI-201Results expected at ASCO 2009

Potential future expansion into non- TNBC breast cancer, ovarian cancer,

and other solid tumors

(1) PARP: Poly ADP-Ribose Polymerase(2) Lack ER/PR/HER2 receptors(3) Reported at the San Antonio Breast Cancer Symposium (Dec 2008)

DNA repair

PARP upregulation

+ BSI-201

Innovative

mode of action

Enhance

tumor

response

to chemotherapy

Page 22: Q1 2009 Earning Report of Sanofi Aventis

22

Developing a Safe and Effective Tetravalent Dengue Vaccine as Rapidly as Possible

Working closely with governments, public health officials and NGO’s to support the creation of appropriate immunization policies and

funding sources

Expected to be first to marketFiling planned in 2014

Global Prevalence

of DengueA major public health concernEstimated 230m people infected annually

2m, mostly children, develop dengue hemorrhagic fever

Our priority is to develop a safe and effective tetravalent dengue vaccine

Phase II studies initiated in 2009 in Thailand, the Philippines, Singapore, Vietnam, Mexico and Peru including adults, adolescents and children

Other studies in Asia and Latin America being planned

Areas infested with Aedes aegypti

Areas with Aedes aegypti and dengue epidemic activity

Page 23: Q1 2009 Earning Report of Sanofi Aventis

23

Anticipated

Newsflow

in 2009

Milestones TimingU.S. expected

decision

on Apidra SoloSTAR® Approved

FDA AdCom

for Multaq®

(dronedarone) 10 votes in favor vs 3 against

Plavix®

ACTIVE-A data presentation Primary endpoint met

EU regulatory

re-submission

of Plavix®

FDC with

ASA Filed

Expected

regulatory

decision

on Lovenox®

-

VTE abdominal surgery

(Japan) Approved

U.S. regulatory

submission

of Flu

new formulation Filed

Expected

regulatory

decision

on Apidra®

(Japan) Approved

Expected

U.S. regulatory

decision

on Multaq®

(dronedarone) Q2 2009

U.S. regulatory

submission

of Menactra®

Infant/Toddler

9-12 months Mid

2009

Expected

CHMP opinion on Multaq®

(dronedarone) Q3 2009

Plavix®

U.S. / EU regulatory

submission

for Atrial Fibrillation Q3 2009

Regulatory submissions

of Japanese

Encephalitis

Vaccine in Asia Q3 2009

Plavix®

CURRENT/OASIS-7 data presentation H2 2009

U.S. / EU regulatory

submissions

of cabazitaxel

in prostate cancer* Q4 2009

EU regulatory

submission

of Pediacel® Q4 2009

U.S. / EU expected

regulatory

decisions

on Ciltyri® Q4 2009* Filing date with interim “overwhelmingly positive data”

Page 24: Q1 2009 Earning Report of Sanofi Aventis

24

Next

Steps

in R&D

Focusing R&D resources on projects with best chance of success and acceptable returns

Accelerating R&D partnerships & alliances to expand access to new technologies and enrich our portfolio with innovative compounds in all stages of development

More details on R&D transformational initiatives related to Strategy and Organization expected for Q2 2009 results

Page 25: Q1 2009 Earning Report of Sanofi Aventis

25

Q1 2009 Market

Performance

Hanspeter SpekExecutive VP, Pharmaceutical Operations

Page 26: Q1 2009 Earning Report of Sanofi Aventis

26

Solid

Q1 2009 Sales Performance as Planned

€ m Q1 2009 % Change (1)

Pharmaceuticals 6,480 +3.0%

Vaccines 627 +9.1%

Total Sales 7,107 +3.5%

Europe 2,948 +0.4%

US 2,295 +5.1%

Rest

of the World 1,864 +7.3%

(1) Growth is on a constant structure and exchange rates basis

Page 27: Q1 2009 Earning Report of Sanofi Aventis

27

Leadership Reinforced

in Emerging

Markets

Robust Q1 2009 sales in emerging markets(1): €1,616m, +8.0%(2)

Strong BRIC-M sales: €562m, +13.5%(2)

Wholesalers tightly managing inventories in some LATAM countries

BRIC-M markets forecasted to deliver close to double digit growth in 2009(3)

Leadership position of sanofi-aventis reinforced by recent acquisitions

Increased market share(4)

of 6% in emerging countries

Well-positioned to increase pharma

sales by around 50% by 2012

(1) World less North America (USA, Canada), Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Portugal, Holland, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan and Australia/New Zealand

(2) Growth is at constant exchange rates(3) Internal analysis based on IMS market prognosis(4) IMS, based on pro forma 2008

Q1 2009 Sales Split by Regions

7,1%5,5%

5,1%

32,3%36,4%

7,2%6,4%

Asia

Pacific

USA

Eastern

Europe

Latin America

Western

Europe

JapanOthers

Page 28: Q1 2009 Earning Report of Sanofi Aventis

28

Becoming an Important Player in Generics

Successful acquisitions of Zentiva, Medley and Kendrick

Regional platforms with competitive development and production capabilities

Large portfolio of affordable and quality medicines

Commercial presence boosted in the generics market

Pro forma 2008 sales in generics increase to just over €

1,2 bn(1)

#8 generic player globally(2) with a targeted regional approach

#1 in Central & Eastern Europe

#1 in Latin America

(1) Internal sources & company reports on a pro forma 2008 basis(2) IMS MIDAS FY 2008 IMS Health except GERS (France), Cegedim (Romania), Business Credits (Ukraine)(3) Excluding OTC sales

0,4

11.2

0.4

0.2

0.6

OldPerimeter

NewPerimeter

Pro forma 2008 Sales in Generics

(1)

(€m)

(3)

Page 29: Q1 2009 Earning Report of Sanofi Aventis

29

Q1 2009 sales: €762m, +1.3%(1)

US: high basis for comparison in Q1 2008 due to UFH supply crisis

Mid-single digit growth in EU despite residual impacts of UFH crisis on product availability

EMEA guidelines on LMWH biosimilars now published

At least one large comparative clinical trial per indication needed to establish equivalence in terms of efficacy and safety

Impact from new oral anticoagulants still insignificant

Market share of dabigatran and rivaroxaban remaining below 1% in Germany, UK and France(2)

(1) Growth is at constant exchange rates (2) IMS February 2009, in treatment days, market : ATC B1B1, B1B2, B1E0, B1X0 + fondaparinux + bivaluridin

-

Sustained

Underlying

Growth

350

450

550

650

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

UFH supply

crisis

impact

Lovenox®

U.S. Sales ($m)

Page 30: Q1 2009 Earning Report of Sanofi Aventis

30

Strong Q1 2009 sales: €747m, +27.1%(1)

> 30% quarterly sales growth in the U.S.Successful ramp-up in Japan driven by SoloSTAR®

device

Growth potential for Apidra®

SoloSTAR®

from penetration of “Basal+”

regimen (Lantus®

+ Apidra®) in eligible sub- populations

Apidra®

SoloSTAR®

approved in the U.S. and Japan

(1) Growth is at constant exchange rates (2) IMS, market share in insulin, International Units

Lantus® Volume Share in Japan(2)

(%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

Dec-07

Jan-0

8Feb

-08Mar-

08Apr-0

8May

-08Ju

n-08Ju

l-08

Aug-08Sep

-08Oct-

08Nov-08Dec-0

8Ja

n-09

Feb-09

-

Continued

Linear

Growth

Worldwide

Lantus®

SoloSTAR®

launch

Lantus®

NPH

detemir

Page 31: Q1 2009 Earning Report of Sanofi Aventis

31

Q1 2009 worldwide

presence(1)

: €1,699m, +8.6%(2)

Stable EU sales despite

competition

from

clopidogrel

besylate

in GERSustained

U.S. performance with

quarterly

sales growth

of +13.6%(2)

Strong

performance in Japan: €70m (+90.2%)

Positive ACTIVE-A data at ACC 2009Supporting the addition of Plavix®

to aspirin in AF patients unsuitable for OAC(4)

Significantly reduces stroke (-28%) with an acceptable increase in major bleedingContraindications to take OAC in up to 43% of AF patients(5)

Expected U.S. and EU filings for AF indication in Q3 2009

(1) Worldwide presence for Plavix®/Iscover® and Aprovel®/Avapro® /Karvea® includes sales consolidated by sanofi-aventis and BMS(2) Growth is at constant exchange rates(3) IMS MIDAS, except GERS for France(4) ACTIVE-A study, patients with atrial fibrillation who were at increased risk for stroke and could not take an oral anticoagulant (OAC) medication, taking Plavix® (clopidogrel bisulfate) in

addition to aspirin significantly reduced major vascular events by 11% over aspirin alone, at a median of 3.6 years of follow-up (6.8% vs. 7.6%per year, p=0.01).(5) Sudlow M et al. Lancet. 1998;352:1167-1171

-

Well-Established

Leadership

0

1

2

3

4

5

6

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Plavix®

Worldwide Sales(3)

(€bn)

Page 32: Q1 2009 Earning Report of Sanofi Aventis

32

Early

Stage Breast

Cancer Driving

Growth

Q1 2009 sales: €534m, +8.3%(1)

Growing penetration in Node(+) Early Stage Breast CancerLower wholesaler inventory levels in the U.S. in Q1 2009

GEICAM 9805 positive results driving use in Node(-) ESBC

Guidelines recently updated in FR, GER, SP, IT, UK and USNode(-) represents 65% of ESBC patients, 22% chemo-treated(2)

Approval of 1-vial Taxotere®

new presentation expected in 2009One vial, one single step for preparation Easier and time-saving preparation

(1) Growth is at constant exchange rates (2) Source: Affiliates Forecasting model, October 2008; Top 7 countries, Breast cancer epidemiology data, 2006

171 197

223231

90106

Q1 2008 Q1 2009

US Europe ROW

+18.9%

Global Sales of Taxotere®

(€m)(1)

+8.1%

+2.9%

Page 33: Q1 2009 Earning Report of Sanofi Aventis

33

-

Preparing for U.S. Launch

Positive vote from FDA Advisory Committee on March 18, 2009 recommending approval

Ongoing regulatory review in the EUExpected CHMP opinion in Q3 2009

ATHENA recently published in the NEJM

U.S. launch preparation building upon a strong commercial platform in cardiology

Low satisfaction level with existing AADs(1)

Multaq®

well-positioned to meet current market needs

U.S. sanofi-aventis sales force ranked in the top 3 among cardiologists (3)

(1) Source: U.S. Multaq® Physician Segmentation Research, 2009 (Fielded Nov/Dec 2008). (2) Idem supra, % physicians indicating product X is most associated (vs. other AADs) with each feature(3) SDI’s Sales Force Structures & Strategies 2008-2009 Ranking

Multaq®

Association with Product Attributes(2)

77%

0

25

50

75

100

Multaq®

Reduces risk of cardiovascular hospitalizationRequires minimal monitoringLow risk of pro-arrhythmiaEase of use

Low risk of organ toxicityMaintains sinus rhythm

®

Page 34: Q1 2009 Earning Report of Sanofi Aventis

34

Vaccines -

Solid Q1 2009 Performance

Q1 2009 sales: €627m, +9.1%(1)

Main contributors

Pediatric vaccines: €236m, +33.9% driven by Pentacel®

launch, + €73m

Seasonal influenza: €62m, +43.8%, impacted by the favorable timing of shipments in Southern Hemisphere

: €96m, -13.2%Next wave of growth: Infant/ToddlerU.S. filing planned mid-2009Expected to be first to market

Emerging markets continued growthLatin America: €81m, +51.1%Asia-Pacific: €63m, +16.8%

Q1 2009 Vaccines Sales Split (%)

(1) Growth is at constant exchange rates(2) 50-50 JV with Merck & Co (JV Perimeter is 19 European countries)

38%

10%19%

15%

12%

6%

Polio/Pertussis/Hib Influenza

Meningitis/Pneumo Boosters

Travel & Endemic Others

®

Page 35: Q1 2009 Earning Report of Sanofi Aventis

35

Q1 2009 -

A Solid

Start into

the Year

Overall sales performance and growth perfectly in line with plan despite current economic downturn

Significant strengthening of growth platforms in major products, regions, generics and emerging markets

FDA decision on Multaq®

(dronedarone) expected in Q2 2009

Page 36: Q1 2009 Earning Report of Sanofi Aventis

36

Q1 2009 Financial Performance

Jérôme ContamineExecutive VP, Chief Financial Officer

Page 37: Q1 2009 Earning Report of Sanofi Aventis

37

6937 6924 6924

183

7,1076,937

247234

Q1 2008 OrganicGrowth

Change inStructure

FX Impact Q1 2009

Q1 2009 Sales Growth

Reported net sales of €7,107m (+2.5% in reported sales or -0.2% at CER)Change in Group structure

Primarily reflecting the discontinuation of commercialization of Copaxone®

in North America since April 2008

Positive FX movementsSolid underlying sales growth of +3.5%(1)

(1) Growth is on a constant structure and exchange rates basis

In €m

Page 38: Q1 2009 Earning Report of Sanofi Aventis

38

Others

JPY5%

USD31%

EUR37%

Sales by Key Currencies

Others

JPY7%

USD32%

EUR36%

Q1 2009 Sales

€7,107m

Q1 2009 (%)

Q1 2008 Sales

€6,937m

Q1 2008 (%)

Page 39: Q1 2009 Earning Report of Sanofi Aventis

39

USD

JPY

69247107

Q1 2009 Sales CER

USD

240

JPY

121

+183

Q1 2009 Sales

In €m

Foreign Exchange Effect on Q1 2009 Sales

Other currencies

Russian Ruble

Australian Dollar

GB Pound

Other currencies

Russian Ruble

Australian Dollar

GB Pound

Page 40: Q1 2009 Earning Report of Sanofi Aventis

40

Cost

Management Continued

in Q1 2009(1,2)

€m Q1 2009 Q1 2008 % Change

(reported €)% Change

(CER)

Net sales 7,107 6,937 +2.5% -0.2%

Other

revenues 344 284 +21.1% +9.9%

Cost of sales (1,767) (1,889) -6.5% -5.9%

Gross profit 5,684 5,332 +6.6% +2.4%

R&D (1,152) (1,089) +5.8% +2.8%

SG&A (1,732) (1,783) -2.9% -5.6%

Other current operating income & expenses 148 104 - -

Amortization of intangibles (50) (42) - -

Adj. operating income current 2,898 2,522 +14.9% +8.6%

(1) Excluding selected items(2) See reconciliation of Adjusted Consolidated Income Statement excluding selected items to Consolidated Income Statement on slide 55

Page 41: Q1 2009 Earning Report of Sanofi Aventis

41

€m Q1 2009 Q1 2008 % Change

(reported €)% Change

(CER)

Adj. operating income current 2,898 2,522 +14.9% +8.6%

Net financial

expenses (44) (17) - -

Income

tax

expense (828) (741) - -

Effective tax rate 29.0% 29.6% - -

Share

of profit/loss

of associates 273 234 +16.7% +9.0%

Minority

interests (121) (115) +5.2% +5.2%

Adjusted net income 2,178 1,883 +15.7% +8.7%

Adjusted EPS € 1.67 € 1.43 +16.8% +9.8%

Strong

EPS Growth

in Q1 2009(1,2)

(1) Excluding selected items(2) See reconciliation of Adjusted Consolidated Income Statement excluding selected items to Consolidated Income Statement on slide 55

Page 42: Q1 2009 Earning Report of Sanofi Aventis

42

Significant

Operating Leverage

in Q1 2009(1)

40.8

36.4

33.034.035.036.037.038.039.040.041.042.043.0

Q1 08 Q1 09

30.6

27.1

23.024.025.026.027.028.029.030.031.032.033.0

Q1 08 Q1 09

24.425.7

20.021.022.023.024.025.026.027.028.029.030.0

Q1 08 Q1 09

24.8

27.2

20.021.022.023.024.025.026.027.028.029.030.0

Q1 08 Q1 09

COS/Sales Ratio (%)

SG&A/Sales Ratio

(%)

Operating Margin

(%)

Net Income/Sales Ratio

(%)

(1) Ajusted P&L excluding selected items

Page 43: Q1 2009 Earning Report of Sanofi Aventis

43

Foreign Exchange Effect Methodology and Sensitivity

Constant Exchange Rates methodology:To calculate growth at Constant Exchange Rates (CER), we exclude the impact of exchange rates by recalculating actual figures for the current period on the basis of exchange rates of the same period a year ago

Average ForEx

sensitivity on yearly basis for Adjusted EPS(1)

:EUR / USD: 1 cent movement in the rate 0.5% of EPS growth

(1) Excluding selected items

Page 44: Q1 2009 Earning Report of Sanofi Aventis

44

Strong

Financial Flexibility

Strong cash flow generation of €2.3bn

before financial

acquisitions in Q1 2009Reduction of net debt from €1.8bn

to €1.2bn

by end of

Q1 2009 despite Zentiva acquisition

Solid credit ratingsMoody’s:

A1 / Stable outlook

Standard & Poor’sAA- / Stable outlook

1.21.8

4.25.8

9.9

14.2

0

2

4

6

8

10

12

14

16

12/31

/2004

12/31

/2005

12/31

/2006

12/31

/2007

12/31

/2008

03/31

/2009

€bn

Net Debt (€bn)

Page 45: Q1 2009 Earning Report of Sanofi Aventis

45

Q1 2009 -

A Good Quarter

Solid underlying sales performance in-line with expectations

Continued cost management

Strong EPS(1)

growth and cash flow generation

Low net debt level

2009 EPS(1)

guidance reiterated

(1) Adjusted EPS before excluding selected items

Page 46: Q1 2009 Earning Report of Sanofi Aventis

46

Q&A SessionChris Viehbacher, Chief Executive Officer

Marc Cluzel, Senior VP, Research and Development

Hanspeter Spek, Executive VP, Pharmaceutical Operations

Jérôme Contamine, Executive VP, Chief Financial Officer

Page 47: Q1 2009 Earning Report of Sanofi Aventis

47

Appendices

R&D

Page 48: Q1 2009 Earning Report of Sanofi Aventis

48

Late Stage Pipeline –

Pharma & Vaccines

Phase IIILantus®

insulin glargine

Reduction in CV morbidity & mortality

Taxotere®

docetaxel

Pediatric

HIV

(Thailand) Prevention of infection; Proof of

concept

Lantus®

insulin glargine

Retinopathy labeling change, U.S.

AVE0010

GLP1 agonist T2 diabetes

aflibercept (VEGF-Trap) (AVE0005) Single: SMA; Combo:1st

line mProstate; 2nd

line NSCLC, 2nd

line mCRC, 1st

line mPancreatic

K

Adacel®

DTP 4-6 yearsMultaq®

dronedarone

Antiarrhythmic agent Atrial fibrillation

Aprovel®

irbesartan

Atrial fibrillation

alvocidib

(HMR1275) Cyclin-dependent kinase

inhibitor

CLL

IMOJEV™

Japanese Encephalitis Prevention of infection

Ciltyri®

eplivanserin

5-HT2A antagonist -

Insomnia

XRP0038

NV1FGF

Critical Limb Ischemia (CLI)

cabazitaxel

(XRP6258) Taxoid, tubulin

inhibitor

Prostate K

Flu Micro-injection

New Delivery U.S. Fasturtec®/Elitek®

rasburicase

Japan -

Malig./chemo-associated hyperuricemia; Hyperuricemia adult, U.S.

teriflunomide

(HMR1726) immunomodulator

Multiple Sclerosis (monotherapy)

AVE8062

Vascular disrupting agent

Sarcoma

Hexaxim™

DTP-HepB-Polio-HibPlavix®

clopidogrel

bisulfate Combo ASA, EU

Lovenox®

enoxaparin

Pen

larotaxel

(XRP9881) Taxoid, Tubulin

inhibitor

Pancreatic K, Bladder K

Pediacel®

EU

DTP-Polio-HibSculptra®

DL6049

Nasolabial

fold wrinkles, U.S.

Plavix®

clopidogrel

bisulfate AF; Pedi. extension; ACS high

loading dose; Stent, & PAD, Japan

xaliproden

(SR57746)

Neurotrophic

Peripheral sensory neuropathies

Menactra®

Infant / Toddler 9-12 monthsAllegra®

fexofenadine

ODT, Japan

idrabiotaparinux

(SSR126517)

Biotinylated

long-acting pentasaccharide; Indirect Xa

inhibitor Long-term treatment DVT/PE; AF

Xatral®

alfuzosin

BPH, Japan; Pediatric

Flu New formulation U.S.

AVE5026

Indirect Xa/IIa

inhibitor

VTE prevent. in ortho, abdo. surgery, cancer patients

Actonel®

risedronate

Pediatric, EU

Metabolic DisordersCardiovascular

Thrombosis

Central Nervous System

Internal Medicine

Oncology

Vaccines

Registration

Source: sanofi-aventis project direction April 29, 2009

N New Molecular Entity

PharmaceuticalsPharmaceuticals

Therapeutic areaTherapeutic area

N

N

N

N

N

N

N

N

N

N

N

N

N

Page 49: Q1 2009 Earning Report of Sanofi Aventis

49

Early Stage Pipeline –

Pharma & Vaccines

Phase I Phase IIAVE0897

Balanced PPAR α/γ

agonist

T2 diabetes

SAR3419

Maytansin-loaded anti-CD19 mAb

non-Hodgkin’s lymphoma

celivarone

(SSR149744) Antiarrhythmic agent

Ventricular Arrhythmia

ferroquine

(SSR97193) Antimalarial

Malaria

SAR351034

PPAR δ

agonist

T2 diabetes; Dyslipidemia

AVE0675

TLR9 agonist

Asthma

ataciguat

(HMR1766) Guanylate

cyclase

activator

Neuropathic pain

SAR97276

Antimalarial

Malaria

SAR407899

Rho-kinase

inhibitor

Erectile dysfunction; neuropathic pain

SAR153191

Anti-IL-6R mAb

Rheumatoid Arthritis

nerispirdine

(HP184) K+/Na+ channel blocker

Multiple Sclerosis

Dengue

Mild-to-severe Dengue Fever

SSR125543 CRF1 antagonist

Depression; PTSD

Flu Pandemia

Low DoseAVE1625

CB1 antagonist

Schizophrenia

DTP-HepB-Polio-Hib

SAR501788

PBR ligand

Sensory & motor neuron degeneration

Tuberculosis

Prevention of diseaseSSR411298

FAAH inhibitor

Depression

ACAM-Cdiff

Prevention of C. difficile associated diarrhea

AVE0118

K+ channel blocker

Obstructive sleep apnea (nasal route)

Meninge ACYW conj. 2nd

generation

Meningitis in infants

teriflunomide

(HMR1726)

Immunomodulator

Multiple sclerosis (adjunct. therapy)

Rabies

mAb

Post Exposure prophylaxis

SAR110894

H3 antagonist

Alzheimer's

Pneumo

Meningitis & pneumonia

in infants (Monovalent)

aflibercept

(AVE005) VEGF-Trap 1st line Colorectal K combi

Flu Cell Culture

New production method

SAR164877

Anti-NGF mAb

Pain

BSI-201

PARP inhibitor

Triple Negative Breast Cancer

West Nile

Prevention of disease

otamixaban

(XRP0673) Direct Xa

inhibitor ACS

Metabolic DisordersCardiovascular

Thrombosis

Central Nervous System

Internal Medicine

Oncology

Vaccines

Source: sanofi-aventis project direction April 29, 2009

N

N

N

N

N

N

N

N

N

N

N

N

N

N

N

N

N

N N

N New Molecular Entity

PharmaceuticalsPharmaceuticals

N

Page 50: Q1 2009 Earning Report of Sanofi Aventis

50

Appendices

Finance

Page 51: Q1 2009 Earning Report of Sanofi Aventis

51

Q1 2009: Adjusted Consolidated Income Statement excluding selected items* (I)

* Non GAAP(1) Before restructuring, impairment of property, plant and equipment and intangibles, gains and losses on disposals, and litigation

million Q1 2009 as % ofnet sales Q1 2008 as % of

net sales % change

Net Sales 7,107 100.0% 6,937 100.0% +2.5%

Other revenues 344 4.8% 284 4.1% +21.1%

Cost of sales (1,767) (24.8%) (1,889) (27.2%) -6.5%

Gross Profit 5,684 80.0% 5,332 76.9% +6.6%

Research & development expenses (1,152) (16.2%) (1,089) (15.7%) +5.8%

Selling & general expenses (1,732) (24.4%) (1,783) (25.7%) -2.9%

Other current operating income & expenses 148 - 104 - -

Amortization of intangibles (50) - (42) - -

Operating Income –

Current (1) 2,898 40.8% 2,522 36.4% +14.9%

Restructuring costs - - - - -

Impairment of PP&E and intangibles - - - - -

Gains and losses on disposals, litigation - - - - -

Operating Income 2,898 40.8% 2,522 36.4% +14.9%

Page 52: Q1 2009 Earning Report of Sanofi Aventis

52

Q1 2009: Adjusted Consolidated Income Statement excluding selected items* (II)

million Q1 2009 As % ofnet sales Q1 2008 As % of

net sales % change

Operating Income 2,898 40.8% 2,522 36.4% +14.9%

Net financial expenses (44) - (17) - -

Income Before Tax and Associates 2,854 40.2% 2,505 36.1% +13.9%

Income tax expense (828) - (741) - -

Share of profit/loss of associates 273 - 234 - -

Net Income Before Minority Interests 2,299 32.3% 1,998 28.8% +15.1%

Minority interests (121) - (115) - -

Net Income After Minority Interests 2,178 30.6% 1,883 27.1% +15.7%

Average number of shares outstanding (million) 1,305.5 1,320.8

Earnings per share (in euros) 1.67 1.43 +16.8%

* Non GAAP

Page 53: Q1 2009 Earning Report of Sanofi Aventis

53

Q1 2009 Reconciliation of Adjusted Consolidated Income Statement Excluding Selected Items to Consolidated Income StatementQ1 2009 €

millionAdjusted excl. selected items Selected Items Adjusted Adjustments Consolidated

Net Sales 7,107 - 7,107 - 7,107

Other revenues 344 - 344 - 344

Cost of sales (1,767) - (1,767) - (1,767)

Gross Profit 5,684 - 5,684 - 5,684

Research & development expenses (1,152) - (1,152) - (1,152)

Selling & general expenses (1,732) - (1,732) - (1,732)

Other current operating income & expenses 148 - 148 - 148

Amortization of intangibles (50) - (50) (844) (894)

Operating Income –

Current (1) 2,898 - 2,898 (844) 2,054

Restructuring costs - (8) (8) - (8)

Impairment - (20) (20) - (20)

Gains and losses on disposals, and litigation - - - - -

Operating Income 2,898 (28) 2,870 (844) 2,026

Net financial expenses (44) - (44) - (44)

Income Before Tax and Associates 2,854 (28) 2,826 (844) 1,982

Income tax expense (828) 10 (818) 284 (534)

Share of profit/loss of associates 273 - 273 (22) 251

Net Income Before Minority Interests 2,299 (18) 2,281 (582) 1,699

Minority interests (121) - (121) - (121)

Net Income After Minority Interests 2,178 (18) 2,160 (582) 1,578

Average number of shares outstanding (million) 1,305.5 1,305.5 1,305.5

Earnings Per Share (in euros) 1.67 (0.02) 1.65 (0.44) 1.21

(1) Before restructuring, impairment of property, plant and equipment and intangibles, gains and losses on disposals, and litigation

Page 54: Q1 2009 Earning Report of Sanofi Aventis

54

Q1 2008 Reconciliation of Adjusted Consolidated Income Statement Excluding Selected Items to Consolidated Income Statement

Q1 2008 €

millionAdjusted excl. selected items Selected Items Adjusted Adjustments Consolidated

Net Sales 6,937 - 6,937 - 6,937

Other revenues 284 - 284 - 284

Cost of sales (1,889) - (1,889) - (1,889)

Gross Profit 5,332 - 5,332 - 5,332

Research & development expenses (1,089) - (1,089) - (1,089)

Selling & general expenses (1,783) - (1,783) - (1,783)

Other current operating income & expenses 104 - 104 - 104

Amortization of intangibles (42) - (42) (819) (861)

Operating Income –

Current (1) 2,522 - 2,522 (819) 1,703

Restructuring costs - (28) (28) - (28)

Impairment - - - - -

Gains and losses on disposals, and litigation - - - - -

Operating Income 2,522 (28) 2,494 (819) 1,675

Net financial expenses (17) - (17) - (17)

Income Before Tax and Associates 2,505 (28) 2,477 (819) 1,658

Income tax expense (741) 8 (733) 301 (432)

Share of profit/loss of associates 234 - 234 (20) 214

Net Income Before Minority Interests 1,998 (20) 1,978 (538) 1,440

Minority interests (115) - (115) - (115)

Net Income After Minority Interests 1,883 (20) 1,863 (538) 1,325

Average number of shares outstanding (million) 1,320.8 1,320.8 1,320.8

Earnings Per Share (in euros) 1.43 (0.02) 1.41 (0.41) 1.00

(1) Before restructuring, impairment of property, plant and equipment and intangibles, gains and losses on disposals, and litigation

Page 55: Q1 2009 Earning Report of Sanofi Aventis

55

Q1 2009: Vaccines Adjusted Consolidated Income Statement* (I)

€ million Q1 2009 As % of net sales Q1 2008 As % of

net sales % change

NET SALES 627 100.0% 548 100.0% +14.4%

Other

revenues 8 1.3% 8 1.5% -

Cost

of sales (236) (37.7%) (214) (39.1%) +10.3%

GROSS PROFIT 399 63.6% 342 62.4% +16.7%

R&D expenses (109) (17.4%) (91) (16.6%) +19.8%

SG&A (130) (20.7%) (118) (21.5%) +10.2%

Other

current

operating income

& expenses - - 1 0.2% -

Amortization

of intangibles - - - - -

OPERATING INCOME CURRENT(1) 160 25.5% 134 24.5% +19.4%

Restructuring

costs - - - - -

Impairment

of PP&E and intangibles - - - - -

Gain/loss

on disposals, litigation - - - - -

OPERATING INCOME 160 25.5% 134 24.5% +19.4%

* Non GAAP(1) Before restructuring, impairment of property, plant and equipment and intangibles, gains and losses on disposals, and litigation

Page 56: Q1 2009 Earning Report of Sanofi Aventis

56

Q1 2009: Vaccines Adjusted Consolidated Income Statement* (II)

€ million Q1 2009 As % of net sales Q1 2008 As % of

net sales % change

OPERATING INCOME 160 25.5% 134 24.5% +19.4%

Net financial

expenses (3) (0.5%) - - -

INCOME BEFORE TAX 157 25.0% 134 24.5% +17.2%

Income

tax

expense (52) (8.3%) (41) (7.5%) +26.8%

Share

of profits 5 0.8% 3 0.5% +66.7%

Minority

interests - - - - -

NET INCOME 110 17.5% 96 17.5% +14.6%

* Non GAAP

Page 57: Q1 2009 Earning Report of Sanofi Aventis

57

Definition of Net Sales at Constant Exchange Rate and Structure Basis

Net Sales at Constant Exchange Rate: When we refer to the change in our sales at Constant Exchange Rate, we mean that we exclude the impact of exchange rate movementsWe exclude the impact of exchange rates by recalculating sales for the current period on the basis of exchange rates used in the prior period

Net Sales at Constant Structure Basis:When we refer to the change in our sales at Constant Structure Basis, we mean that we exclude the impact of changes in Group structure (acquisitions and divestments of interests in entities and rights to products,

and changes in consolidation method for consolidated entities).We exclude the impact of acquisitions by including sales from the acquired entity or product rights for a portion of the prior period equal

to the portion of the current period during which we owned them, based on sales information we receive from the party from whom we make the acquisition.Similarly, we exclude sales in the relevant portion of the prior

period when we have sold an entity or rights to a product.

Page 58: Q1 2009 Earning Report of Sanofi Aventis

58

Definition of Adjusted Net Income

Net income+ Add back: Material impacts of the application of purchase accounting to acquisitions made by sanofi-aventis (primarily the acquisition of Aventis):

Charges related to remeasurement of inventories, net of tax

Amortization/impairment charges arising from remeasurement of intangible assets, net of tax

Any impairment of goodwill

+ Add back: Integration and restructuring costs specific to acquisitions, net of tax= Adjusted Net Income

Page 59: Q1 2009 Earning Report of Sanofi Aventis

59

Definition of “Selected Items”

We define “selected items”

as accounting items reflecting significant events occurring during the period that would alter a user’s understanding of our operational performance if they were not disclosed separately. Consequently, selected items are limited in number, unusual in nature, and involve significant amounts. Selected items are primarily recorded in the following line items:

Restructuring costs Restructuring costs include early retirement benefits, compensation for early termination of contracts, and rationalization costs relating to restructured sites. Asset impairment losses directly attributable to restructuring are also recorded on this line. Restructuring costs included on this line relate only to unusual and major restructuring plans.

Impairment of property, plant and equipment and intangibles This line includes major impairment losses (other than those directly attributable to restructuring) on property, plant and equipment and intangibles, including goodwill. It also includes any reversals of such losses.

Gains and losses on disposals, and litigation This line comprises gains and losses on major disposals of property, plant and equipment and intangible assets, and costs and provisions related to major litigation.

Income tax expense, as regards the effect of material tax disputes and any tax effects of other income or expenses that are treated as selected

items.


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