CSLA Investors Forum 2014 Jean-Marie Arnaud, Vice President, South East Asia & IndoChina,
Global Operations
Hong Kong, September 17, 2014
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.
3
Sanofi Highlights to Date
Emerging Markets - Strong Contribution from Asia Region
Agenda
The Opportunity with Sanofi
Sanofi is a Global Integrated Healthcare Company
(1) As of December 31, 2013
more than
110,000 Employees(1)
present in
100 countries
€33bn in sales in 2013
A diversified offer of medicines, vaccines and innovative therapeutic solutions
112 industrial Sites in 41 countries
• We are a global integrated healthcare company engaged in
research, development, manufacturing and marketing of
healthcare products.
4
Executing a Successful Strategy
Deliver sustainable
long-term growth
and maximize
shareholder returns Seize value-enhancing growth
opportunities 3
Bring innovative products to market 2
Grow a global healthcare leader
with synergistic platforms 1
5
Adapt structure for future
challenges and opportunities 4
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
6
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)
Q2 2014
-€0.10
FX Impact Incremental
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
7
(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 2014 Q2 2013 FX Impact
+€515m -€443m
+6.4% at CER(1)
€8,003m €8,075m
€1.12
€1.17
(2)
(2)
+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
8
(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
-4.2%
H1 2014 Growth at CER
+9.3%
+14.7%
-2.2%
+25.4%
+2.2%
+17.8%
+11.0%
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 2013 Q2 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
% of Group sales 63.2% 76.3%
10
Sanofi Highlights to Date
Emerging Markets - Strong Contribution from Asia Region
Agenda
The Opportunity with Sanofi
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 & Middle East, +4.3% in Eastern Europe, Russia & 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
34.2%
31.3%
24.5%
10.0%
11
(1)
+8.5%
+4.7% +5.4% +14.6% Growth at CER
-1.5%
-7.4%
-0.7%
+11.0%
Emerging Markets Total Sales by Region
excluding Brazil Generics
(2)
Poised for Continued Strong Growth in the ‘Asia Region’
12
Taiwan
Malaysia
Philippines
Affiliates/HQ
Manufacturing site
Hong
Kong
Thailand
Vietnam
Indonesia
China
Perimeter of ‘Asia Region’ at Sanofi ● Regional headquarters in Shanghai
● Strategic hub in Singapore
● 10 country affiliates
● >12,000 employees in the ‘Asia
region’
● Growing presence in Consumer
Healthcare, Vaccines, Genzyme and
Animal Health
● Strong local industrial footprint
● Addressing a market of ~2bn people(1)
(1) CIA – The World Fact Book 2013 ’
Singapore
Cambodia
11
Sanofi in China - Well Poised to Seize the Opportunities
in the Chinese Healthcare Market
13
Shanghai
Tianjin
Shenyang
Wuhan Chengdu
Urumqi
Ji’nan
Beijing
Hangzhou
Guangzhou
Nanjing
Nanchang
Tangshan
Shenzhen
Regional offices Production Sites R&D center Regional R&D
● >8,500 Employees
● >5,000 Sales force
● 11 Regional Offices
● Regional R&D Platform
● 7 Manufacturing Sites
● Local Production for
Pharmaceuticals, Vaccines,
CHC and Animal Health
● Highest Standards for
Quality, Sustainability and
Supply Chain
A Fully Integrated
Presence
Sanofi in China – A Strong and Growing Contributor to
Our Leadership Position in Emerging Markets
14
(1) IMS CHPA MAT December 2013
(2) Mainland China; CAGR 2008-2013
Sanofi Sales in China(2)
€347m
2012 2011 2010 2009 2008
+33%
2013
Ranked #4 in China(1)
Sanofi China represented 13% of Emerging Markets and 4.5% of Group sales in 2013
€1,471m PFIZER
ASTRAZENECA
SHANDONG QILU FTY
BAYER
JS. YANGZIJIANG FTY
ROCHE
KE LUN
NOVARTIS
JS.L.Y.G. HENGRUI
1
2
3
4
5
6
7
8
9
10
15
Progressively Developing Our Growth Platforms in China
Breakdown of Sanofi Sales in China(1) by Business(2)
Total Sales €1,471m
72%
2007 2013
Total Sales €273m
(1) Mainland China
(2) Illustrative 15
Pharmaceuticals
Genzyme
Consumer Healthcare
Diabetes
Vaccines
Animal Health/Merial
10%
8%
5%
(1) Wordlbank, IMF; GDP Growth (2012),
(2) Worldbank, IMF; ‘Total expenditure on health as % of Gross National Product’ (GDP); 2012
South East Asia Represents a Major Growth Opportunity
● GDP growth in most SEA countries
higher than in developed markets
● Diverse political systems and
economic trends
● Unequal pace of development offers
opportunities for a diversified
healthcare leader
● Increase in healthcare expenditure
driven by an emerging middle class
● Largely out-of-pocket markets
● Improved affordability and coverage
through public healthcare reforms
4% 3%
5% 4%
16
Heathcare Expenditure as a % of GDP
still low in most fast growing SEA economies
7%
6%
-0.4
Healthcare expenditure
as % of GDP(2) GDP growth in %(1)
Global
OECD
PHL THA IDN MYS VNM SGP
E.U.
2.5
1.9
12.1
1.3
2013
3.3
Cambodia
1.7
5.4
Thailand
Vietnam
Indonesia
2017
17.2
2.4
3.2
3.0
Malaysia
Singapore
Philippines
Myanmar
2.1
In € billion(2)
(1) IMS Prognosis 2014-2018
(2) At constant exchange rates (2014)
CAGR
‘13-’17
+14%
+13%
Positive Outlook for the Pharmaceutical Market in
South East Asia
South East Asia Pharmaceutical Market(1)
● Population of >500m people
● South East Asia Pharmaceutical
market estimated to be ~€12bn(1)
● Growth of +9%, 2013 – 2017 CAGR
● Fastest growing markets
Indonesia and Vietnam
● Expected to represent 68% of
incremental growth in the region
(2014-2018)
+9%
17
Sanofi is an Established Leader in South East Asia
Top 10 Pharmaceutical Companies in South East Asia(1)
Sales in € million (2013)
(1) IMS 2013, South East Asia countries = Indonesia, Thailand, Philippines, Singapore, Malaysia, Vietnam
Pfizer
Unilab
GSK
Novartis
Merck
Kalbe
Roche
AstraZeneca
Bayer
● A broad portfolio to address local
market needs and to capture growth
opportunities
● Investment focus on priority markets
● Improved access through
geographical expansion
● E.g., Cambodia and Myanmar
18
19
Sanofi Highlights to Date
Emerging Markets - Strong Contribution from Asia Region
Agenda
The Opportunity with Sanofi
● 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
20
● FDA approval granted in
August 2014
● EU regulatory decision
expected in Q4 2014
● 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
Three major new drug approvals expected over the next 12 months
21
Alirocumab Illustrates Sanofi’s Focus on Gearing Up
to Successful Launches of Biologics
22
PCSK9 Inhibitors Have the Potential to Improve LDL-C
Management of High Cardiovascular (CV) Risk Patients
● High LDL-C and CV diseases remain an area of high unmet
medical need
● Large and comprehensive Phase 3 ODYSSEY clinical program
designed to assess the safety and efficacy of alirocumab in patients
with hypercholesterolemia at high CV risk
● Detailed positive efficacy and safety results of four pivotal alirocumab
studies(1) recently highlighted at a hotline session at ESC
● Submission planned in the U.S. and EU by end of 2014
(1) ODYSSEY LONG TERM, FH I & II, and COMBO II studies.
First-in-Class Dengue Vaccine Met Primary Endpoint in
2 Phase III Trials in Asia and Latin America
23
Sanofi’s Dengue vaccine candidate
Two successfully
completed
Phase III studies(2)
Study in
Asia
Study in
LatAm
Number of
participants in study 10,275 20,875
Reduction in
symptomatic dengue 56.5% 60.8%
Reduction in
hospitalization 67.2% 80.3%
(1) Dengue and severe dengue; WHO Fact Sheet No. 117 updated March 2014 http://www.who.int/mediacentre/factsheets/fs117/en/index.html; WHO 2009,
Dengue Guidelines for Diagnosis, Treatment, Prevention and Control; WHO 2012, Global Strategy for Dengue Prevention and Control, Guzman, 2010,
Nat Rev Micro.
(2) The Lancet, July 2014; Sanofi press release, September 3, 2014
Aedes aegypti
The Global Disease Burden of Dengue(1)
2.5 billion
people live in
dengue-endemic
countries
50-100 million
dengue infections
occur worldwide
every year
500,000 people
with severe dengue
requiring
hospitalization
every year
24
Sarilumab and dupilumab are developed in collaboration with Regeneron
NEJM: New England Journal of Medicine
(1) Mean % change in EASI score from baseline to Week 16 / Clearing or near-clearing of skin lesions, measured by an investigator's global assessment
(IGA) score of 0 or 1 / Mean reduction in itching measured by the pruritus numerical-rating scale (NRS) score
(2) Improvement in signs and symptoms of RA / Improvement in physical function / Inhibition of progression of structural damage
Strong Late Stage Pipeline of Biologics Demonstrates
the Shift of our Portfolio towards Innovative Products
● First Phase III study in Asia
published in The Lancet
● Final Dengue Landmark
Phase III study successfully
completed in Latin America
● Regulatory submission in
priority countries expected
in Q1 2015
Dengue Vaccine
● Detailed data from positive
Phase III MOBILITY trial
presented at EULAR
● Statistically significant
improvements
in all three co-primary
endpoints(2)
Sarilumab Rheumatoid Arthritis
● Strong Phase IIa data
published in the NEJM
● Positive Phase IIb top-line
results
● Statistically significant and
dose-dependent
improvements in all key
efficacy measures(1)
Atopic Dermatitis
Two New Collaborations Signed in Q2 2014
Strengthening our CHC and Diabetes Growth Platforms
25
● Licensing agreement with Lilly
● Opportunity to switch Cialis® from Rx to OTC in the U.S., Europe,
Canada and Australia(1)
● Ambition to transform how this important medicine for erectile
dysfunction (ED) is offered to millions of men in the world
● Global strategic alliance(2) in diabetes structured as open-innovation model
● Initial focus on novel drug-device combinations and care management
● Objective to improve adherence, simplify insulin treatment and help patients
better manage their condition
(1) Subject to Sanofi's receipt of all necessary regulatory approvals
(2) Implementation of the alliance is subject to the negotiation and execution of a definitive agreement between the companies
Solid H1 Performance Reflects Consistent Execution
of our Growth Strategy
Over 75% of sales now being generated by Growth Platforms
Business EPS guidance for 2014 adjusted slightly upwards
Late stage pipeline moving to launch execution
Expected new medicine launches to further redefine Sanofi
as a biopharmaceutical leader
26
The Opportunity with Sanofi
Sanofi has transformed into a company
positioned for sustainable growth
through its Growth Platforms(1) and
has a robust late-stage pipeline
of new biologics
27 (1) Growth Platforms include Emerging Markets, Diabetes Solutions, Vaccines, Consumer Healthcare, Animal Health, Genzyme
& Other Innovative Products. In Q2 2014, sales from Growth Platforms accounted for 76.3% of Group sales
Top Related