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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 Sanofis
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, the Companys
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 Sanofis annual report on Form 20-F for the year
ended December 31, 2016. Other than as required by applicable law, Sanofi does not undertake any obligation to
update or revise any forward-looking information or statements.
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Agenda
Key Highlights
Olivier Brandicourt - Chief Executive Officer
Financial Results
Jrme Contamine - Executive Vice President, Chief Financial Officer
3
KEY HIGHLIGHTS
Olivier Brandicourt
Chief Executive Officer
4
Q2 2017 Sales Performance Consistent with Expectations
Company Sales
76m 8,663m
50m
394m 8,537m
+0.6%
at CER/CS(4)
8,143m
(1)
Q2 2016 BI CHC / SPMSD Q2 2016 Sales (3) Fx Q2 2017
CS (2)
(1) Primarily includes SPMSD (47m) and BI CHC (371m on a Full Sales recognition basis; 348m when adjusting
for progressive sales recognition) in Q2 2016. Minor disposal of CHC activities in China is also included.
(2) Q2 2016 Sales at Constant Structure
(3) Incremental sales at CER 5
(4) Growth at Constant Exchange Rates (CER) and Constant Structure (CS)
Q2 2017 Financial Results Benefit from Simplification;
H1 Performance Allows for Raised 2017 Guidance
+5.5% +1.5%
at CER at CER
(3)
Sanofi Pasteur (Vaccines) 1,016m +19.2%
1,386m
(2)
Diabetes & Cardiovascular -15.0%
(5)
1,163m
(4)
Consumer Healthcare -0.1%
(6,7,8)
General Medicines & Emerging Markets 3,659m -1.3%
(1) Growth at CER and Constant Structure on the basis of Q2 2016 (6) Includes Emerging Markets sales for Diabetes &
sales including CHC sales from Boehringer Ingelheim, SPMSD Cardiovascular and Specialty Care
sales and others (7) Emerging Markets: World excluding U.S., Canada, Western &
(2) Does not include Emerging Markets sales Eastern Europe (except Eurasia), Japan, South Korea,
(3) On a CER basis, growth was +26.2% Australia, New Zealand and Puerto Rico
(4) Consumer Healthcare includes sales in Emerging Markets (8) Excluding global Consumer Healthcare sales and Vaccines
Pictures by Freepik
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(5) On a CER basis, growth was +42.5%
Emerging Markets Supported Growth While Developed
Markets Faced Some Headwinds in Q2 2017
9
Double-Digit Vaccines Growth in Q2 Driven by Pediatric
Combination Strategy and Menactra
Q2 2016 Q2 2017
CS(3)
All growth at CER/CS unless otherwise stated (2) Centers for Disease Control and Prevention
(1) Pediatric combination vaccines including Hexaxim, Pentaxim, (3) Q2 2016 Sales adjusted for SPMSD
Tetraxim 10
Accelerated Decline in Diabetes Sales
Partially Mitigated by Toujeo
(1) Growth at CER and Constant Structure on the basis of Q2 2016 sales including CHC sales from Boehringer Ingelheim and Others
(2) Europe Allergy, cough and cold sales were up +21.6% and Pain sales were up +15.7% in Q1 2017
(3) 42 countries have exited transitional distribution service agreement by early July 2017. Remaining 13 countries expected to exit transitional
distribution service agreement by April 2018. 12
Emerging Markets(1) Continue Strong Growth With
China Sales Increasing Double Digits(2)
2,350m
2,798m EUROPE
312m 886m
U.S. -1.0%
EURASIA(4) ROW(3)
-2.7%
+15.2% -1.1%
934m
626m ASIA
AME(5)
+10.0%
729m +1.4%
LATAM
+3.9%
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Strong Launch Driven by High Patient Need,
HCP Engagement and Initial Market Access
MOBILITY
MTX-IR(3)
Consistent efficacy in both MTX-IR(2) 45.6%
37.0%
and TNF-IR(3) patients 33.4%
24.8%
19.8%
Radiographic data supportive of 16.6%
7.3%
clinical profile on joint erosion and
space narrowing
Bi-weekly administration for both 60.9%
55.8%
200mg and 150mg doses
TNF-IR(4)
TARGET
40.8%
37.0%
33.7%
Payer discussions ongoing
18.2% 19.9%
16.3%
Market access anticipated for majority 7.2%
of commercial lives by year-end
ACR20 ACR50 ACR70
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SAR439684 (PD-1 inhibitor): Registrational Phase 2
Underway Supported by Positive Early Results in CSCC
In collaboration with Regeneron (3) Disease Control Rate alanine aminotransferase (ALT) elevation
SAR439684 is an investigational agent under clinical (4) The most common treatment-related adverse (3.8%).
development and its safety and efficacy has not been event of any grade was fatigue (23.1%). All (5) Non-Small Cell Lung Cancer
fully evaluated by any Regulatory Authority grade 3 or higher adverse events occurred once (6) Basal Cell Carcinoma
SAR439684 also known as REGN2810 and included arthralgia (3.8%), maculopapular (7) Relapsed Refractory Multiple Myeloma
(1) Cutaneous Squamous Cell Carcinoma rash (3.8%), asthenia (3.8%), aspartate (8) Data presented at ASCO 2017
(2) Overall Response Rate aminotransferase (AST) elevation (3.8%) and 18
Fitusiran Positive Phase 2 data and Phase 3 ATLAS
Program Initiated
Patients without
without inhibitors
Inhibitors
48% of patients bleed-free
67% of patients reported no 2 1.7
spontaneous bleeding
N=7 N=12 N=19
Majority of AEs(2) were mild or moderate Prophylaxis On-Demand
Patients with
Asymptomatic ALT increases >3X ULN
Inhibitors
observed in HCV Ab+ patients; most
cases improved without dose interruption
(one led to discontinuation) 0
N=14 N=14
Phase 3 ATLAS program initiated
Pre-Study Observation
In collaboration with Alnylam (1) Open-Label Extension
Fitusiran is an investigational agent under clinical development and its (2) Adverse events
safety and efficacy has not been fully evaluated by any Regulatory (3) Injection site reactions
Authority (4) Annualized Bleed Rate 19
FINANCIAL RESULTS
Jrme Contamine
Executive Vice President,
Chief Financial Officer
20
Currency Tailwind Diminishes in Q2 2017
Currency Impact
Company Sales(1) Business EPS
+3.0%
+2.5%
+0.04
+194m +1.6%
+0.9%
+0.02
-10m +76m
-0.07 +0.05
-353m
-5.0%
-4.2%
Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2
(1) Main currency impact on Company Sales in Q2 2017: US Dollar (+67m), Brazilian Real (+28m), Russian Rouble
(+24m), Egyptian Pound (-35m) and Turkish Lira (-22m)
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Q2 2017 Operating Margin Improvement More than
Offset Change of Structure and Higher Tax Rate
(1)
3,926m
70.9% 70.8% +0.5% at CER/CS(2)
3,870m
1,358m
71.7%
1,304m
+3.1% at R&D
CER/CS
2,568m
2,566m -0.9% at SG&A
CER/CS
(1) Gross Margin is calculated as the ratio of Gross profit over Company sales (excluding Other revenues)
(2) At CER and Constant Structure
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(3) Adjustments for BI CHC and SPMSD and Others reduces Gross Margin Ratio by 0.1% and add 169m in SG&A and 25m in R&D
Net Debt Evolution in H1 2017
Net Debt
-246m
FCF -350m
2,987m 2,299m -1,599m
-688m 4,349m
-3,710m
8,206m
7,463m
FCF: Free Cash Flow (3) Including payment to MedImmune of 120m and repayment from
(1) Including derivatives related to the financial debt +100m at Hanmi of 98m
December 31st 2016 and +87m at June 30th 2017 (4) Other including Restructuring costs and Fx impact
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25
(2) Excluding Restructuring costs
Raising Business EPS Guidance at CER
for H1 2017 Performance
FY 2017
Olivier Brandicourt
Chief Executive Officer
27
Executing on our 2020 Strategic Roadmap
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Q&A SESSION
29
APPENDICES
R&D PIPELINE
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R&D Pipeline Pharma & Vaccines
Phase 1 Phase 2 Phase 3 Registration
SAR440340 N SAR438335 N dupilumab efpeglenatiden N dupilumab Dupixent
Anti-IL33 mAb GLP-1R/GIPR dual agonist Anti-IL4R mAb Long-acting GLP-1 receptor agonist Anti-IL4R mAb Anti-IL4R mAb
Asthma & COPD Type 2 diabetes Eosinophilic oesophagitis Type 2 diabetes Asthma, Nasal Polyposis Atopic dermatitis, EU
Oncology 3 1 2 0 6
Diabetes 2 2 1 1 6
Cardiovascular Diseases 3 1 0 0 4
Immuno-inflammation 2 3 0 0 5 31
Infectious Diseases 0 1 0 0 1
Rare Diseases 0 2 3 0 5
Multiple Sclerosis,
Neurology, Ophthalmology
3 1 0 0 4
Vaccines 3 7 4 2 16
TOTAL 16 18 10 3
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34 13 NMEs & Vaccines
(1) Excluding life cycle management programs
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Expected R&D Milestones
isatuximab Start of additional Phase 3 trials in Multiple Myeloma and additional indications H2 2017
SAR439684 (PD-1) Phase 2 (registration) results in Cutaneous Squamous Cell Carcinoma Q1 2018
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APPENDICES
FINANCE
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2017 Currency Sensitivity
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Business Net Income Statement
million Q2 2017 Q2 2016 Change Q2 2017 Q2 2016 Change Q2 2017 Q2 2016 Q2 2017 Q2 2016 Change
Net sales 7,647 7,346 4.1% 1,016 797 27.5% 8,663 8,143 6.4%
Cost of Sales (2,168) (2,046) 6.0% (629) (477) 31.9% (2,797) (2,523) 10.9%
As % of net sales (28.4%) (27.9%) (61.9%) (59.8%) (32.3%) (31.0%)
Gross Profit 5,552 5,368 3.4% 584 417 40.0% 6,136 5,785 6.1%
As % of net sales 72.6% 73.1% 57.5% 52.3% 70.8% 71.0%
Research and development expenses (1,203) (1,138) 5.7% (155) (141) 9.9% (1,358) (1,279) 6.2%
As % of net sales (15.7%) (15.5%) (15.3%) (17.7%) (15.7%) (15.7%)
Selling and general expenses (2,338) (2,215) 5.6% (230) (182) 26.4% (2,568) (2,397) 7.1%
As % of net sales (30.6%) (30.2%) (22.6%) (22.8%) (29.6%) (29.4%)
Other operating income/expenses 53 3 5 (1) 10 (25) 68 (23)
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Business Net Income Statement
million H1 2017 H1 2016 Change H1 2017 H1 2016 Change H1 2017 H1 2016 H1 2017 H1 2016 Change
Net sales 15,511 14,504 6.9% 1,800 1,422 26.6% 17,311 15,926 8.7%
Other revenues 149 122 22.1% 370 188 96.8% 519 310 67.4%
Cost of Sales (4,363) (4,143) 5.3% (1,131) (827) 36.8% (5,494) (4,970) 10.5%
As % of net sales (28.1%) (28.6%) (62.8%) (58.2%) (31.7%) (31.2%)
Gross Profit 11,297 10,483 7.8% 1,039 783 32.7% 12,336 11,266 9.5%
As % of net sales 72.8% 72.3% 57.7% 55.1% 71.3% 70.7%
Research and development expenses (2,373) (2,246) 5.7% (294) (268) 9.7% (2,667) (2,514) 6.1%
As % of net sales (15.3%) (15.5%) (16.3%) (18.8%) (15.4%) (15.8%)
Selling and general expenses (4,609) (4,261) 8.2% (437) (348) 25.6% (5,046) (4,609) 9.5%
As % of net sales (29.7%) (29.4%) (24.3%) (24.5%) (29.1%) (28.9%)
Other operating income/expenses 122 110 2 (1) (22) (39) 102 70
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Consolidated Income Statements
million
Q2 2017 (1) Q2 2016 (1) H1 2017 (1) H1 2016 (1)
Net income excluding the exchanged/held-for-exchange Animal Health business 1,073 987 2,381 2,000
Net income/(loss) of the exchanged /held-for-exchange Animal Health business (6) 186 4,421 286
Net income 1,067 1,173 6,802 2,286
Net income attributable to non-controlling interests 30 15 64 41
Net income attributable to equity holders of Sanofi 1,037 1,158 6,738 2,245
Average number of shares outstanding (million) 1,258.2 1,286.8 1,260.3 1,287.6
Earnings per share excluding the exchanged/held-for-exchange Animal Health business (in euros) 0.83 0.76 1.84 1.52
IFRS Earnings per share (in euros) 0.82 0.90 5.35 1.74
(1) Animal Health results and gain on disposal are reported separately in accordance with IFRS 5 (Non-Current Assets Held for Sale and Discontinued Operations).
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Reconciliation of Consolidated Net Income Attributable to
Equity Holders of Sanofi to Business Net Income
million Q2 2017 Q2 2016 Change
(1) Of which related to amortization expense generated by the remeasurement of intangible assets as part of business combinations: 453 million in the second quarter of 2017 and 399
million in the second quarter of 2016.
(2) In 2017, carve-out costs related to the EU Generics divestment process.
(3) In 2016, includes the following items: impact of the discontinuation of depreciation and impairment of Property, Plant & Equipment starting at IFRS 5 application (Non-current assets held
for sale and discontinued operations), impact of the amortization and impairment of intangible assets until IFRS 5 application, costs incurred as a result of the divestment, as well as tax
effect of these items.
(4) In 2016, includes the following items: impact of the discontinuation of the equity accounting of the Sanofi Pasteur MSD business net income since the announcement by Sanofi and Merck
of their intent to end their joint vaccine operations in Europe.
(5) Based on an average number of shares outstanding of 1,258.2 million in the second quarter of 2017 and 1,286.8 million in the second quarter of 2016.
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Reconciliation of Consolidated Net Income Attributable to
Equity Holders of Sanofi to Business Net Income
million H1 2017 H1 2016 Change
Inventories, accounts receivable and other current Current liabilities related to business combinations and to
16,194 16,414 234 198
assets non-controlling interests
Cash and cash equivalents 10,877 10,273 Short-term debt and current portion of long-term debt 3,241 1,764
Assets held for sale or exchange 28 6,421 Liabilities related to assets held for sale or exchange 10 1,195
TOTAL ASSETS 101,870 104,672 TOTAL LIABILITIES & EQUITY 101,870 104,672
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