Q2 2014 Results by Sanofi

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Q2 2014 Results by Sanofi

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<ul><li> 1. Q2 2014 RESULTS July 31, 2014 </li> <li> 2. 2 Forward Looking Statements This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "plans" and similar expressions. Although Sanofi's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Sanofi, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include among other things, the uncertainties inherent in research and development, future clinical data and analysis, including post marketing, decisions by regulatory authorities, such as the FDA or the EMA, regarding whether and when to approve any drug, device or biological application that may be filed for any such product candidates as well as their decisions regarding labeling and other matters that could affect the availability or commercial potential of such product candidates, the absence of guarantee that the product candidates if approved will be commercially successful, the future approval and commercial success of therapeutic alternatives, the Group's ability to benefit from external growth opportunities, trends in exchange rates and prevailing interest rates, the impact of cost containment policies and subsequent changes thereto, the average number of shares outstanding as well as those discussed or identified in the public filings with the SEC and the AMF made by Sanofi, including those listed under "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in Sanofi's annual report on Form 20-F for the year ended December 31, 2013. Other than as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements. </li> <li> 3. 33 Agenda Key Highlights Christopher A. Viehbacher, Chief Executive Officer Financial Performance Jrme Contamine, Executive Vice President, Chief Financial Officer Conclusion Christopher A. Viehbacher, Chief Executive Officer Q&amp;A </li> <li> 4. KEY HIGHLIGHTS 4 Christopher A. Viehbacher Chief Executive Officer </li> <li> 5. Net sales up +6.4% at CER and Business EPS up +13.4% at CER Free Cash Flow up +33% in H1 2014 3.7bn dividend payment and 1.1bn share buyback 76.3% of Group sales Solid execution in Emerging Markets Merial back to growth 3 significant regulatory reviews ongoing 4 major projects with Phase IIb/III readouts 2 new important collaborations Sanofi Delivered Solid Results in Q2 2014 5 3 2 1 Solid financial performance Strong performance of Growth Platforms Significant progress in late stage pipeline FCF: Free Cash Flow (1) Excluding Generics in Brazil, Q2 2014 sales were up +3.9% at CER (2) Dividend payment of 3,676m on full-year 2013 results made in Q2 2014 (3) As of July 15th 2014, Sanofi bought back shares for 1,100m in YTD 2014 (1) (3)(2) </li> <li> 6. Q2 2014 -0.10 FX ImpactIncremental EPS at CER Q2 2013 +0.15 Net Sales(1) Business EPS(1) Solid Q2 2014 Financial Performance Reflects Consistent Execution of our Growth Strategy 6 (1) On a reported basis, Q2 2014 sales were up +0.9% and Business EPS was up +4.5% (2) With retroactive application of IFRIC21 +13.4% at CER(1) Incremental Sales at CER Q2 2014Q2 2013 FX Impact +515m -443m +6.4% at CER(1) 8,003m 8,075m 1.12 1.17 (2) 1 (2) </li> <li> 7. 2014 Business EPS Guidance Adjusted Slightly Upwards 7 (1) FY 2013 Business EPS of 5.05 with retroactive application of IFRIC21 7 Given our financial performance in H1 2014 and despite increasing U.S. competitive pressure at the payor level, 2014 business EPS is expected to be between 6% to 8% higher than 2013 at CER(1) , barring major unforeseen adverse events 1 FY 2014 Guidance </li> <li> 8. Evolution of Share Buyback(1,2) 8 SBB: Share Buyback (1) As of July 15th 2014, YTD 2014 share buyback of 1,100m and YTD 2014 proceeds from share issuance of 252m (2) Number of shares outstanding in million on Dec 31st 2012, Dec 31st 2013 and June 30th 2014 646m 1,100m 252m 823m 1,641m 1,004m 2012 Sanofi Increased Buyback Activity in H1 2014 2013 YTD 2014 177m Net SBB 637m Net SBB 848m Net SBB Share count (m) 1,323.2 1,320.7 1,312.1 1 Issuance Issuance IssuanceBuyback Buyback Buyback </li> <li> 9. Quarterly Sales Growth from Growth Platforms(1) +6.2% Q1 2013 +8.6% Q4 2012 +11.5% Q3 2012 +6.4% Q2 2012 +7.6% Q1 2012 +5.7% Q4 2013 +10.0% Q3 2013Q2 2013 +5.5% +7.9% Q1 2014 Q2 2014 +10.7% (1) Growth at CER. Q1 2012 growth restated for Genzyme Q1 2011 (396m) (2) Growth at CER including Generics in Brazil was +2.5% in Q2 2013 and +14.5% in Q2 2014 9 Growth Platforms Show Consistent Strong Performance Demonstrating the Value of our Business Model (2) (2) +5% at CER +10% at CER 2 % of Group sales 63.2% 76.3% </li> <li> 10. +9.2%Consumer Healthcare(3) 816m Vaccines -4.2%718m Genzyme(4) Growth Platforms Grew +14.5%(1) in Q2 2014 Reaching 76.3% of Sales 10 (1) Excluding Generics in Brazil, Growth Platforms grew +10.7% in Q2 2014 and +9.0% in H1 2014 at CER (2) Excluding Generics in Brazil, Emerging Markets grew +8.6% in Q2 2014 and +6.5% in H1 2014 at CER (3) Some products recorded in prescription pharmaceuticals in 2013 were transferred as Consumer Healthcare products and totaled 73m in Q2 2013 Including this category change, sales of Consumer Healthcare grew +20.2% in Q2 2014 and +19.4% in H1 2014 at CER (4) Genzyme perimeter includes Rare Diseases and Multiple Sclerosis franchises (5) Includes products launched since 2009 which do not belong to the Growth Platforms listed above: Multaq, Jevtana, Auvi-Q, Mozobil and Zaltrap +16.2% -0.4% +29.1% +6.2% Other Innovative Products(5) 189m +13.3% +16.5% Diabetes Solutions 1,788m Animal Health 643m Emerging Markets(2) 2,855m 537m Q2 2014 Growth at CER 2 -4.2% H1 2014 Growth at CER +9.3% +14.7% -2.2% +25.4% +2.2% +17.8% +11.0% </li> <li> 11. H1 2014 Geographic Sales Mix (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) Pharmaceuticals sales growth at CER was +2.2% in Africa &amp; Middle East, +4.3% in Eastern Europe, Russia &amp; Turkey, +10.6% in Asia and +18.2% in Latin America excluding Generics in Brazil in H1 2014 Solid Sales Performance in Emerging Markets in H1 2014 as Operational Issues from 2013 Have Been Addressed Emerging Markets 5,445m U.S. 4,984m Western EU 3,906m RoW 1,582m 34.2% 31.3% 24.5% 10.0% 11 (1) 1,006m 1,239m 1,519m 1,618m Africa &amp; Middle East Eastern Europe, Russia &amp; Turkey Asia Latin America +8.5% +4.7% +5.4% +14.6%Growth at CER -1.5% -7.4% -0.7% +11.0% 2 Emerging Markets Total Sales by Region excluding Brazil Generics (2) </li> <li> 12. Merial Returned to Growth in Q2 2014 12 Successful launch of NexGard First soft, beef-flavored chew treating fleas and ticks for dogs in the U.S. 58m sales in H1 2014 Frontline family sales stabilized in Q2 2014 Start of flea and tick season not disrupted by weather conditions except in Northern U.S. Effective investment in ad campaign reinforcing strong Frontline brand 2 Q2Q1 Q4Q3 -3.1% -5.7% -6.3% 2013 Merial Sales Growth at CER -6.4% -1.6% +6.2% Q2Q1 2014 </li> <li> 13. Filed in the U.S. and EU in Q2 2014 and recently in Japan Regulatory decisions for marketing authorization in the U.S. and EU anticipated in H1 2015 Three New Medicines Under Regulatory Review with the Potential to Meaningfully Improve Patient Lives 13 U.S. and EU regulatory reviews ongoing Regulatory decisions expected in Q3 and Q4 2014, respectively NDA submitted in Japan in June, 2014 sBLA resubmission accepted for review by FDA in May 2014 FDA action expected in Q4 2014 New dedicated salesforce being recruited 3 Three major new drug approvals expected over the next 12 months </li> <li> 14. 14 Primary efficacy endpoint met in all 9 trials(1) LDL reduction consistent with previous trials Generally well tolerated in the 9 ODYSSEY trials (2) Lower rate of adjudicated major CV events(3, 4) observed in a post-hoc analysis of ODYSSEY LONG TERM (p-value</li></ul>