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Q1 2014 RESULTS April 29, 2014

Q1 2014 Results par Sanofi

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Q1 2014 Results par Sanofi

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Page 1: Q1 2014 Results par Sanofi

Q1 2014 RESULTS April 29, 2014

Page 2: Q1 2014 Results par Sanofi

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, 2013. Other than as required by applicable law, Sanofi does not undertake any

obligation to update or revise any forward-looking information or statements.

Page 3: Q1 2014 Results par Sanofi

3 3

Agenda

Key Highlights

● Christopher A. Viehbacher, Chief Executive Officer

Financial Performance

● Jérôme Contamine, Executive Vice President, Chief Financial Officer

Conclusion

● Christopher A. Viehbacher, Chief Executive Officer

Q&A

Page 4: Q1 2014 Results par Sanofi

KEY HIGHLIGHTS

4

Christopher A. Viehbacher

Chief Executive Officer

Page 5: Q1 2014 Results par Sanofi

Key Highlights for Q1 2014

Top and bottom line growth in line with expectations

– Net sales up +3.5% at CER

– Business EPS up +5.8% at CER

New product launches

– Nasacort® Allergy 24HR nasal spray in the U.S.

– NexGard™ chewables in the U.S.

Late stage R&D pipeline progress

– Dengue vaccine met primary endpoint in 1st Phase III study

– Significant advances with Lemtrada™, alirocumab, LixiLan, dupilumab

5

Increased value of open innovation

– Strengthened collaborations with Regeneron and Alnylam

– New collaborations with UCB and SK Chemical

1

2

3

4

Page 6: Q1 2014 Results par Sanofi

Pharmaceuticals Delivered +4.7% Sales Growth at CER

6

(1) Q1 2014 sales were down -2.7% on a reported basis

(2) Q1 2014 sales for Pharmaceuticals were up +4,9% at CER and on a constant perimeter basis

€628m

€6,697m

€7,842m

€697m

€8,059m

Q1 2014

€6,808m

€517m

Q1 2013

€554m

Pharmaceuticals

Vaccines

Animal Health

+4.7% at CER

-4.2% at CER

-1.6% at CER

Q1 2014 Net Sales

(1)

1

(2)

Page 7: Q1 2014 Results par Sanofi

7

(1) World excluding U.S., Canada, Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg,

Portugal, Holland, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia, and New Zealand

(2) Western Europe: France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg, Portugal, Holland, Austria,

Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark

Q1 2014 Net Sales

(1)

(2)

Latin America: +13.1% at CER

Asia: +4.0% at CER

Eastern EU, Russia & Turkey: +4.0% at CER

Middle East & Africa: -1.0% at CER

€2,590m +5.5% at CER

€2,415m +7.5% at CER

€1,998m -0.3% at CER

€839m -4.0% at CER

Continued Solid Growth in our Two Largest Geographies 1

Emerging Markets

United States

Western EU

RoW

Page 8: Q1 2014 Results par Sanofi

+18.6% Consumer Healthcare (1)

€885m

Vaccines -4.2% €628m

Genzyme(2)

Growth Platforms Grew by +7.9% Reaching 73.7% of Sales

8

(1) Some products recorded in prescription pharmaceuticals in Q1 2013 were transferred as Consumer Healthcare products and totaled €68m in Q1 2014.

Excluding this change of perimeter, sales of Consumer Healthcare grew 9.4% in Q1 2014.

(2) Genzyme perimeter includes Rare Diseases and Multiple Sclerosis franchises

(3) Includes products launched since 2009 which do not belong to the Growth Platforms listed above: Multaq®, Jevtana®, Auvi-Q™, Mozobil® and Zaltrap®

+13.2%

-4.2%

+21.5%

-1.6%

Other Innovative Products(3) €190m +22.6%

+5.5%

Diabetes Solutions €1,662m

Animal Health

€566m

Emerging Markets €2,590m

€517m

Q1 2014 Growth at CER

1

Page 9: Q1 2014 Results par Sanofi

New Launches Executed in Q1 2014

9

● First and only 24 HR full Rx strength nasal allergy

spray available OTC in the U.S.

● Up to 60m people in U.S. with allergies and up to

28m people using nasal sprays

● €36m sales in Q1 2014 in the U.S.

● First and only beef-flavored chew treating fleas

and ticks in dogs in the U.S.

● Launched in the U.S. and France

● €23m sales in Q1 2014

2

Page 10: Q1 2014 Results par Sanofi

10

First-in-Class Dengue Vaccine Met Primary Endpoint

in Phase III Trial in Asia

Significant Disease Burden(1)

● 2.5bn people at risk

● 100m symptomatic dengue cases worldwide per year

● 500,000 people with severe dengue requiring hospitalization

● 2.5% of people with severe dengue die

● Dengue is a public health priority in Asia and Latin America

(1) Dengue and severe dengue; WHO Fact Sheet No. 117 updated Sep. 2013 http://www.who.int/mediacentre/factsheets/fs117/en/index.html

Dengue is under-reported and thus the burden is likely underestimated (Bhatt S et al. Nature. 2013 Apr 25;496(7446):504-7)

(2) Sabchareon A et al. Lancet. 2012 Nov 3;380(9853):1559-67.

Ambitious Development Program

● 1st Phase III in Asia (~10,000 children)

● 3 vaccinations at 0, 6, and 12 months

● 56% reduction of dengue disease cases from first available data

● Good safety profile

● 2nd Phase III trial ongoing in LatAm

● >20,000 children and adolescents

● Results expected in Q3 2014

3

WHO objectives: Reduce dengue mortality by 50% and morbidity by at least 25% by 2020

Page 11: Q1 2014 Results par Sanofi

Innovation - Significant Advances in Q1 2014

11

● Planned sBLA resubmission in Q2 2014

● FDA review timeframe: 2 or 6 months

once filing is accepted(1)

● 2 Phase III studies initiated in Q1 2014

● LixiLan-O: patients insufficiently controlled

on OADs

● LixiLan-L: patients not at goal on basal

insulin

● Positive Phase III monotherapy trial

results presented at ACC in Mar 2014

● 9 additional Phase III top-line readouts

expected from June through Q3 2014

● Strong Phase IIa results in AD presented

at AAAAI in March 2014(2)

● Phase IIb top-line results in AD expected

in Q2 2014 and in Asthma in Q1 2015

(1) FDA will assign a 2 month or 6 month review cycle within 14 calendar days of receipt of the resubmission

(2) Phase IIa presented at AAAAI (American Academy of Allergy, Asthma & Immunology) - Annual Meeting, March 4 2014

- Atopic Dermatitis / Asthma

Alirocumab and dupilumab are developed in collaboration with Regeneron

- Hypercholesterolemia

- Diabetes

- Multiple Sclerosis

3

R&D

Page 12: Q1 2014 Results par Sanofi

Strengthened Relationship with Regeneron

12

● A model of global strategic R&D collaboration

● Secured access to therapeutic human antibody platform

● Sanofi ownership of Regeneron recently reached 20%

● Robert A. Ingram nominated by Sanofi and appointed

as a member of Regeneron's Board of Directors

● “Significant influence” under IFRS rules allows Sanofi

to account for its investment in Regeneron using the

Equity method from April 4, 2014

4

Page 13: Q1 2014 Results par Sanofi

13

Genzyme’s Leadership in Rare Diseases Increases through

Expansion of Alnylam Collaboration

(1) Proprietary technology that conjugates a sugar molecule called “GalNAc” to the siRNA (small interfering RNA)

(2) In January 2014, Genzyme purchased $700m of Alnylam common stock. On March 25, 2014, Genzyme exercised its

right to purchase additional shares of Alnylam for $23m as a result of Alnylam’s issuance of shares to Merck in

connection with the acquisition of Sirna Therapeutics. The exercise of this right to purchase the maximum number of

additional shares under the terms of the investor rights agreement allows Genzyme to maintain its current ownership

level of Alnylam common stock of approximately 12%.

● Alnylam’s RNAi technology to

provide a platform for sustained drug

development for rare genetic

diseases for Genzyme

● Focus is on genetically defined

diseases with a clear translational

model for RNAi

● Delivery platform enabling

subcutaneous administration of drug

candidates targeting hepatocytes(1)

● Genzyme now one of Alnylam’s main

shareholders with 12% stake(2)

PC P1 P2 P3

Patisiran (TTR-FAP) in expanded territory

AS1 (Hepatic Porphyria)

TTRsc (FAC)

Unnamed

AT3 (Hemophilia)

TTR-FAP: Transthyretin-Familial Amyloïd Polyneuropathy

FAC: Familial Amyloïd Cardiomyopathy

Program Rights*

*subject to opt-in

4

Page 14: Q1 2014 Results par Sanofi

New R&D Collaborations Signed in Q1 2014

14

● A scientific and strategic collaboration

for the discovery and development

of innovative anti-inflammatory

small molecules

● Focused on immune-mediated diseases

currently treated by biologic agents such

as rheumatoid arthritis, ulcerative colitis

and Crohn’s disease, etc.

● A long-term strategic cooperation to

co-develop an innovative pneumococcal

conjugate vaccine (PCV) with enhanced

serotype coverage

● Potential access to the large and

growing global PCV market

4

Page 15: Q1 2014 Results par Sanofi

Multiple Regulatory and Phase III Development

Milestones Are Expected in 2014

15

2014

Expected Regulatory Decisions Q1 Q2 Q3 Q4

● Shan5® 5-in-1 pediatric vaccine WHO pre-qualification

● Cerdelga™ in Gaucher disease (U.S. & EU)

● Lemtrada™ in Multiple Sclerosis (U.S.)

● Fluzone® QIV Intradermal (U.S.)

Expected Regulatory Submissions Q1 Q2 Q3 Q4

● Fluzone® QIV Intradermal (U.S.)

● Lemtrada™ in Multiple Sclerosis (U.S.)

● Toujeo™ (U300) in Diabetes (U.S. & EU)

● 6-in-1 pediatric vaccine PR5i (U.S.)

● Alirocumab in Hypercholesterolemia (EU)

Expected Headline Phase III Data Releases Q1 Q2 Q3 Q4

● Dengue vaccine 1st Phase III trial in Asia

● Alirocumab in Hypercholesterolemia (multiple ODYSSEY trials)

● Dengue vaccine 2nd Phase III trial in Latin America

Expected Phase III Starts Q1 Q2 Q3 Q4

● LixiLan (lixisenatide + insulin glargine) in Diabetes

● Dupilumab in Atopic Dermatitis

● Rotavirus vaccine

4

Page 16: Q1 2014 Results par Sanofi

SI SBB

16

(1) Cumulated 2014 share buyback of €583m (7.8m shares) by April 25, 2014 (€355m by end of March).

(2) Cumulated 2014 proceeds from share issuance of €58m (1.6m shares) by April 25, 2014 (€37m by end of March)

(3) Cumulated 2014 shares acquired net of shares created of €525m (6.2m shares) by April 25, 2014

Evolution of Share Buyback(1,2,3)

€583m

€58m

€1,641m

€1,004m

€823m

€646m

2012

: Share issuance

: Share buyback SBB

SI

● Opportunistic share buyback

in Q1 2014 above and beyond

anti-dilution purpose

● Share buyback of €583m in YTD

2014(1)

● Proceeds from share issuance of

€58m in YTD 2014(2)

Sanofi Continued Share Buyback in 2014

SI SBB

2013

SI SBB

2014

Page 17: Q1 2014 Results par Sanofi

FINANCIAL PERFORMANCE

Jérôme Contamine

Executive Vice President, Chief Financial Officer

17

Page 18: Q1 2014 Results par Sanofi

Q1 2014

-€0.11

FX Impact Incremental

EPS at CER Q1 2013

+€0.07

Net Sales Business EPS

Sanofi Delivered Top and Bottom Line Growth at CER,

in Line with Expectations

18

(1) On a reported basis, Q1 2014 sales were down -2.7% and Business EPS was down -3.3%

(2) With retroactive application of IFRIC21

+5.8% at CER(1)

Incremental

Sales at CER Q1 2014 Q1 2013 FX Impact

+€280m -€497m

+3.5% at CER(1)

€8,059m

€7,842m

€1.21

€1.17

(2)

Page 19: Q1 2014 Results par Sanofi

Net Sales(1) Business EPS

19

Negative FX Impact given Strength of the Euro

vs. Other Currencies

(1) Main currency impact on sales in Q1 2014: U.S. Dollar (-€96m); Japanese Yen (-€87m); Brazilian Real (-€62m); Russian Ruble (-€39m); Argentine Peso

(-€29m); Turkish Lira(-€27m) and Australian Dollar (-€26m)

(2) Difference between variation on reported basis and variation at constant exchange rates

Quarterly Currency Impact

-2.5%

-€212m

-4.4%

-€0.08

-3.5%

-€305m

2013

-€0.08

-5.5%

-7.3%

-€662m -€0.17

-10.2%

Q4 Q3 Q2 Q1

-7.3%

-€627m

2014

Q1

-€0.16

-13.7%

-6.2%

-€497m -9.1%

-€0.11

2013

Q4 Q3 Q2 Q1

2014

Q1

Assuming Q1 2014 exchange rates for 2014, negative FX impact on 2014 Business EPS would be ~6%(2)

Page 20: Q1 2014 Results par Sanofi

Sequential Improvement in Gross Margin in Q1 2014

vs. Q4 2013

● Cost of Sales (CoS) in Q1 2014:

€2,516m, up +4.3% at CER

● CoS ratio up 0.5 ppt in Q1 2014:

● CoS ratio improvement for

Pharmaceuticals (positive impact of

0.4 ppt at CER on the variation of the

Group CoS ratio)

● Dilutive impact of Vaccines and Animal

Health (negative impact of 0.3 ppt at

CER on the Group CoS ratio for each)

● Unfavorable currency variations

20

Gross Margin (%)

2013 2014

69.0% 69.6% 67.7% 67.0% 66.8%

Page 21: Q1 2014 Results par Sanofi

Stable R&D Expenses despite Significant Investment

in Phase III Trials

21

● Q1 2014 R&D expenses of

€1,139m, up +1.1% at CER

● Ongoing multiple Phase III trials

● Slight increase in R&D spend in line

with guidance

21

R&D Expenses (€m)

2013 2014

€1,139m €1,157m

(1) With retroactive application of IFRIC21

(1)

Page 22: Q1 2014 Results par Sanofi

Modest Increase in SG&A Expenses in Q1 2014

Despite New Product Launch Costs

22

● Q1 2014 SG&A expenses of

€2,078m, up +2.5% at CER

● Sales & Marketing investment in

product launches (Aubagio®,

Lemtrada™, Nasacort® OTC,

NexGard™)

● Lower increase in SG&A than Sales

22

SG&A Expenses (€m)

2013 2014

€2,078m €2,140m (1)

(1) With retroactive application of IFRIC21

Page 23: Q1 2014 Results par Sanofi

CER: Constant Exchange Rates

23

€m Q1 2014 Q1 2013 % Change (reported €)

% Change (CER)

Business operating income 2,145 2,321 -7.6% +0.6%

Net financial expenses (76) (140) - -

Income tax expense (522) (583) - -

Effective tax rate -25.0% -26.5% - -

Business net income 1,547 1,598 -3.2% +5.6%

Net margin 19.7% 19.8% - -

Business EPS(2) €1.17 €1.21 -3.3% +5.8%

Average number of shares outstanding (m) 1,319.9 1,322.2 - -

Business EPS Growth of +5.8% in Line with Full Year

Financial Guidance

23

(1) With the retroactive application of IFRIC21

(2) Business EPS was down -7.8% at CER in Q1 2013 excluding Plavix® and Avapro®

Loss of Exclusivity in the U.S. - Avapro® on March 30, 2012 and Plavix® on May 17, 2012

(1)

Page 24: Q1 2014 Results par Sanofi

Proceeds

from Issuance

of Shares

Share

Repurchase

€355m

Other Net Debt

Mar 31, 2014

€1,556m

Acquisitions,

Licensing, Net

of Disposals

€176m

€37m

CapEx

€279m

Net Cash from

Operating

Activities

Net Debt

Dec 31, 2013

FCF Increased by 20.6% and Sanofi Made Significant

Investments in Regeneron and Alnylam in Q1 2014

24

(1)

(2)

€6,043m

€6,697m €1,675m

(1) (4)

Net Debt (in €m)

FCF

€1,396m

(1) Including derivatives related to the financial debt +€290m at December 31st 2013 and +€317m at March 31st 2014

(2) Excluding Restructuring costs

(3) Including €954m in Regeneron and €530m in Alnylam

(4) Other including Restructuring costs

(3)

Page 25: Q1 2014 Results par Sanofi

OWNERSHIP / INVESTOR AGREEMENT

Contribution of Regeneron Reflects Growing Importance

of Strategic Relationship

● Regeneron 20% ownership accounted for under the Equity method from April 4, 2014

● Limited differences between U.S. GAAP and IFRS

BNI expected to benefit by ~€45m in 2014(4)

● Sanofi funds clinical development cost(1)

● Regeneron funds 20% of Phase III costs

incurred after receipt of the first positive

results in a Phase III trial

● Sanofi retains 50% of profits in U.S. and 55% to 65% of profits ex-U.S.(2)

● Regeneron repays Sanofi for 50% of development costs out of profits(3)

License and Collaboration Agreement (Post Opt-In)

COMMERCIALIZATION DEVELOPMENT

(1) 100% development funding by Sanofi for all opted-in antibodies except 80% of an antibody’s Phase III costs incurred after receipt of the first positive

results in a Phase III trial for that antibody

(2) Regeneron has co-promotion rights in U.S. and other major market countries

(3) Repayment is capped in any year at 10% of Regeneron share of total antibody profits

(4) Based on Regeneron consensus estimates for US GAAP net income in FY2014; EUR/USD rate of $1.38 25

Page 26: Q1 2014 Results par Sanofi

CONCLUSION

26

Christopher A. Viehbacher

Chief Executive Officer

Page 27: Q1 2014 Results par Sanofi

Good start into 2014

Q1 2014 results in line with expectations and guidance

Key pipeline assets in pre-launch phase

External R&D collaborations extended

Continued buyback of shares in Q1 2014

27

Page 28: Q1 2014 Results par Sanofi

APPENDICES

R&D Pipeline

28

Page 29: Q1 2014 Results par Sanofi

29

Late Stage Pipeline – Pharma & Vaccines

Toujeo™ (U300)

Insulin glargine

Type 1+2 diabetes

alirocumab Anti-PCSK-9 mAb

Hypercholesterolemia

Dengue Mild-to-severe

dengue fever vaccine

Lemtrada™ (alemtuzumab)

Anti-CD52 mAb

Multiple sclerosis, U.S.

Lyxumia® (lixisenatide)

GLP-1 agonist

Type 2 diabetes, U.S.

Kynamro® (mipomersen)

Apolipoprotein B-100 antisense

Severe HeFH, U.S.

Clostridium difficile Toxoid vaccine

Cerdelga™ (eliglustat tartrate)

Glucosylceramide synthetase inhibitor

Gaucher disease, U.S., EU

LixiLan lixisenatide + insulin glargine

Fixed-Ratio / Type 2 diabetes

sarilumab Anti-IL-6R mAb

Rheumatoid arthritis

DTP-HepB-Polio-Hib (PR5I)

Pediatric hexavalent vaccine

Quadracel® Diphtheria, tetanus, pertussis

& polio vaccine; 4-6 y of age

patisiran SAR438037 mRNA inhibitor

Familial amyloid polyneuropathy

Jevtana® (cabazitaxel)

Metastatic prostate cancer (1L)

VaxiGrip® QIV IM Quadrivalent inactivated

influenza vaccine

Fluzone® QIV ID Quadrivalent inactivated

influenza vaccine intradermal

SYNVISC-ONE®

Medical device

Pain in hip OA

N

29

N

N

N

N New Molecular Entity Immune Mediated Diseases

Rare Diseases

Oncology

Diabetes Solutions

Vaccines

Infectious Diseases

Cardiovascular / Renal

Diseases

Age Related Degenerative

Diseases

Ophthalmology

Biosurgery

N

Phase III Registration

N

Page 30: Q1 2014 Results par Sanofi

Early Stage Pipeline – Pharma & Vaccines

dupilumab Anti-IL4Rα mAb

Atopic dermatitis; Asthma; Nasal polyposis

SAR391786 GDF8 mAb

Sarcopenia

SAR438714 (ALN-TTRsc)

RNAi

Familial amyloid cardiomyopathy

SAR339658 Anti-VLA 2 mAb

Multiple sclerosis

SAR3419 Maytansin-loaded anti-CD19 mAb

B-cell refractory/relapsed malignancies

(NHL)

Rotavirus Live attenuated tetravalent

Rotavirus oral vaccine

SAR156597 IL4/IL13 Bi-specific mAb

Idiopathic pulmonary fibrosis

SAR256212 (MM121)

anti-ErbB3 mAb

Breast cancer (2L, 3L)

Rabies VRVg Purified vero rabies vaccine

SAR100842 LPA-1 receptor antagonist

Systemic sclerosis

Combination

SAR245409 (XL765) / MSC1936369B Oral dual inhibitor of PI3K & mTOR / pimasertib

Ovarian cancer

Meningitis ACYW conj. 2nd generation meningococcal

conjugate infant vaccine

sarilumab Anti-IL-6R mAb

Uveitis

SAR279356 (F598)

Anti-PNAG mAb

Serious infections

Tuberculosis Recombinant subunit vaccine

fresolimumab TGFβ antagonist

Focal segmental glomerulosclerosis

Combination

ferroquine / OZ439 Antimalarial

Malaria

Phase II

N

N

N

N

N N

30

N

30

N

N New Molecular Entity Immune Mediated Diseases

Rare Diseases

Oncology

Diabetes Solutions

Vaccines

Infectious Diseases

Cardiovascular / Renal

Diseases

Age Related Degenerative

Diseases

Ophthalmology

Biosurgery

N

N

N

N

Page 31: Q1 2014 Results par Sanofi

Early Stage Pipeline – Pharma & Vaccines

SAR650984 Anti-CD38 naked mAb

Hematological malignancies

SAR245408 (XL147)

Oral PI3K inhibitor

Solid tumors

GZ402663 (sFLT-01)

Gene therapy Age-related macular degeneration (AMD)

Streptococcus pneumonia Meningitis & pneumonia vaccine

SAR405838 (MI-773)

HDM2 / p53 antagonist

Solid tumors

Combination

SAR405838 / MSC1936369B Solid tumors

StarGen® Gene therapy

Stargardt disease

Pseudomonas aeruginosa Antibody fragment product

Prevention of ventilator-associated pneumonia

SAR153192 Anti-DLL4 mAb

Solid tumors

SAR228810 Anti-protofibrillar AB mAb

Alzheimer’s disease

UshStat® Gene therapy

Usher syndrome 1B

Herpes Simplex Virus Type 2 HSV-2 vaccine

SAR566658

Maytansin-loaded anti-CA6 mAb

Solid tumors

SAR252067 Anti-LIGHT mAb

Crohn’s disease

GZ402665 (rhASM)

Niemann-Pick type B

SAR125844

C-MET kinase inhibitor

Solid tumors

SAR113244 Anti-CXCR5 mAb

Systemic lupus erythematosus

GZ402671 Oral GCS Inhibitor

Fabry Disease

SAR307746 Anti-ANG2 mAb

Solid tumors

Insulin Biosimilar Program Diabetes

GZ402666 neo GAA

Pompe Disease

SAR260301 PI3K β selective inhibitor

PTEN – Deficient tumors

SAR438151 Undisclosed target

SAR438584 Undisclosed target

Phase I

N

N

N

N

N N N

N

N

N

N N

31 31

N

N

N

N

N New Molecular Entity Immune Mediated Diseases

Rare Diseases

Oncology

Diabetes Solutions

Vaccines

Infectious Diseases

Cardiovascular / Renal

Diseases

Age Related Degenerative

Diseases

Ophthalmology

Biosurgery

N

N N

Page 32: Q1 2014 Results par Sanofi

32

Phase I Phase II Phase III Registration TOTAL

Oncology 8 3 0 0 11

Diabetes Solutions 0 0 2 0 2

Cardiovascular / Renal

Diseases 0 1 1 0 2

Immune Mediated

Diseases 2 4 1 0 7

Infectious Diseases 0 2 0 0 2

Ophthalmology 3 0 0 0 3

Rare Diseases 3 1 1 1 6

Age Related

Degenerative Diseases 1 1 0 0 2

Vaccines 3 4 4 2 13

TOTAL 22(2) 16 9 3

R&D Pipeline Summary Table(1)

38 12 NMEs & Vaccines

50

32

37(2)

(1) Excluding life cycle management programs

(2) Includes 2 Phase I projects addressing an undisclosed target

Page 33: Q1 2014 Results par Sanofi

33

Expected R&D Milestones in 2014

33

Product Event Timing

Dengue vaccine Expected 1st Phase III results (Asia) Q2 2014

Shan5® 5-in-1 pediatric vaccine Expected WHO pre-qualification Q2 2014

Lemtrada™ (alemtuzumab) Expected U.S. regulatory submissions in Multiple Sclerosis Q2 2014

Toujeo™ (U300) Expected U.S. and EU regulatory submissions in Diabetes Q2 2014

Alirocumab (anti-PCSK9 mAb) Expected multiple Phase III readouts in Hypercholesterolemia Jun to Q3 2014

DTP-HepB-Polio-Hib (PR5i) Expected U.S. regulatory submission Q3 2014

Dengue vaccine Expected 2nd Phase III results (Latin America) Q3 2014

Dupilumab (anti-IL4Rα mAb) Expected start of Phase III trial in Atopic Dermatitis Q3 2014

Cerdelga™ (eliglustat tartrate) Expected U.S. and EU regulatory decisions in Gaucher disease H2 2014

Lemtrada™ (alemtuzumab) Expected U.S. regulatory decision in Multiple Sclerosis H2 2014

Rotavirus vaccine Expected start of Phase III trial Q4 2014

Fluzone® QIV ID Expected U.S. regulatory decision Q4 2014

Alirocumab (anti-PCSK9 mAb) Expected EU regulatory submission in Hypercholesterolemia Q4 2014

Page 34: Q1 2014 Results par Sanofi

APPENDICES

FINANCE

34

Page 35: Q1 2014 Results par Sanofi

35

Business Net Income Statement

* Net of tax

** Determined on the basis of Business income before tax, associates. and non-controlling interests.

*** Based on an average number of shares outstanding of 1,319.9 million in the first quarter of 2014 and 1,322.2 million in the first quarter of 2013.

(1) Including impact of transition to IFRIC 21.

First quarter Group Total Pharmaceuticals Vaccines Animal Health Others

€ million Q1 2014 Q1 2013(1)

Change Q1 2014 Q1 2013(1)

Change Q1 2014 Q1 2013(1)

Change Q1 2014 Q1 2013(1)

Change Q1 2014 Q1 2013(1)

Net sales 7,842 8,059 (2.7%) 6,697 6,808 (1.6%) 628 697 (9.9%) 517 554 (6.7%)

Other revenues 83 98 (15.3%) 68 83 (18.1%) 7 7 - 8 8 -

Cost of sales (2,516) (2,545) (1.1%) (1,988) (2,034) (2.3%) (350) (345) 1.4% (178) (166) 7.2%

As % of net sales (32.1%) (31.6%) (29.7%) (29.9%) (55.7%) (49.5%) (34.4%) (29.9%)

Gross profit 5,409 5,612 (3.6%) 4,777 4,857 (1.6%) 285 359 (20.6%) 347 396 (12.4%)

As % of net sales 69.0% 69.6% 71.3% 71.3% 45.4% 51.5% 67.1% 71.5%

Research and development expenses

(1,139) (1,157) (1.6%) (995) (990) 0.5% (107) (128) (16.4%) (37) (39) (5.1%)

As % of net sales (14.5%) (14.4%) (14.9%) (14.5%) (17.0%) (18.4%) (7.2%) (7.0%)

Selling and general expenses

(2,078) (2,140) (2.9%) (1,791) (1,836) (2.5%) (129) (141) (8.5%) (158) (163) (3.1%)

As % of net sales (26.5%) (26.6%) (26.7%) (27.0%) (20.6%) (20.2%) (30.5%) (29.5%)

Other current operating income/expenses

(25) 29 (23) 30 (2) 2 6 (1) (6) (2)

Share of profit/loss of associates* and joint ventures

13 18 8 19 5 (1)

Net income attributable to non-controlling interests

(35) (41) (35) (41)

Business operating income

2,145 2,321 (7.6%) 1,941 2,039 (4.8%) 52 91 (42.9%) 158 193 (18.1%) (6) (2)

As % of net sales 27.4% 28.8% 29.0% 30.0% 8.3% 13.1% 30.6% 34.8%

Financial income and expenses

(76) (140)

Income tax expense (522) (583)

Tax rate** 25.0% 26.5%

Business net income 1,547 1,598 (3.2%)

As % of net sales 19.7% 19.8%

Business earnings per share*** (in euros)

1.17 1.21 (3.3%)

Page 36: Q1 2014 Results par Sanofi

Reconciliation of Business Net Income to Consolidated

Net Income Attributable to Equity Holders of Sanofi

€ million Q1 2014 Q1 2013(1)

Change

Business net income 1,547 1,598 (3.2%)

Amortization of intangible assets (2)

(677) (775)

Impairment of intangible assets (3) (10)

Fair value remeasurement of contingent consideration liabilities

(8) (41)

Expenses arising from the impact of acquisitions on inventories - (3)

Restructuring costs (51) (54)

Other gains and losses, litigation 35(3)

-

Tax effect of items listed above: 248 280

Amortization of intangible assets 244 259 Impairment of intangible assets 1 - Fair value remeasurement of contingent consideration liabilities 1 4 Expenses arising from the impact of acquisitions on inventories - 1 Restructuring costs 15 16 Other gains and losses, and litigations (13) -

Share of items listed above attributable to non-controlling interests

1 1

Restructuring costs of associates and joint ventures, and expenses arising from the impact of acquisitions on associates and joint ventures

(8) (7)

Net income attributable to equity holders of Sanofi 1,084 989

Consolidated earnings per share(4)

(in euros) 0.82 0.75 9.3%

(1) Including impact of transition to IFRIC 21.

(2) Of which related to amortization expense generated by the remeasurement of intangible assets as part of business combinations:

€657 million in the first quarter of 2014 and €749 million in the first quarter of 2013.

(3) Day one profit on Alnylam shares in Financial result.

(4) Based on an average number of shares outstanding of 1,319.9 million in the first quarter of 2014 and 1,322.2 million in the first quarter of 2013. 36

Page 37: Q1 2014 Results par Sanofi

Consolidated Income Statement

37

37

(1) Including impact of transition to IFRIC 21.

€ million Q1 2014 Q1 2013(1)

Net sales 7,842 8,059

Other revenues 83 98

Cost of sales (2,516) (2,548)

Gross profit 5,409 5,609

Research and development expenses (1,139) (1,157)

Selling and general expenses (2,078) (2,140)

Other operating income 10 71

Other operating expenses (35) (42)

Amortization of intangible assets (677) (775)

Impairment of intangible assets (3) (10)

Fair value remeasurement of contingent consideration liabilities (8) (41)

Restructuring costs (51) (54)

Other gains and losses, and litigation - -

Operating income 1,428 1,461

Financial expense (147) (157)

Financial income 106 17

Income before tax and associates and joint ventures 1,387 1,321

Income tax expense (274) (303)

Share of profit/loss of associates and joint ventures 5 11

Net income 1,118 1,029

Net income attributable to non-controlling interests 34 40

Net income attributable to equity holders of Sanofi 1,084 989

Average number of shares outstanding (million) 1,319.9 1,322.2

Earnings per share (in euros) 0.82 0.75

Page 38: Q1 2014 Results par Sanofi

Business EPS Currency Sensitivity

Currency Exposure on Q1 2014 Sales Currency Average Rates

2014 Currency Sensitivity

38

● 1% variation in €/$ corresponds to an impact of 0.5% on 2014 Business EPS

● 1% variation in €/Yen corresponds to an impact of 0.1% on 2014 Business EPS

Q1’13 Q1’14 % change

€/$ 1.32 1.37 3.7%

€/Yen 121.91 140.76 15.5%

€/Real 2.63 3.24 23.0%

€/Ruble 40.15 48.08 19.7%