Slide 1: Q2 2021 Results
Q2 2021 Results Play to Win July 29, 2021
Slide 2: Forward looking statements
Forward looking statements This document 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 underlyin
Slide 3: Agenda
Agenda Corporate update Paul Hudson Chief Executive Officer Bill Sibold Specialty Care Thomas Triomphe Vaccines Business update Olivier Charmeil General Medicines Julie Van Ongevalle Consumer Healthcare R&D update John Reed Global Head of R&D Financial results Jean-Baptiste de Chatillon Chief Financ
Slide 4: Accelerated sales and business EPS growth in Q2 2021
Accelerated sales and business EPS growth in Q2 2021 Sales and EPS growth Dupixent® growth step-up Vaccines up double-digit Company Sales +12% €1,243m €1,022m Q2 2021 €8,744m €927m Q2 2020 €8,207m €858m +57% +16% Business EPS +16% Q2 2021 €1.38 Q2 2020 €1.28 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Full-year
Slide 5: Leaders strengthening the Executive Committee and EUROAPI Board
Leaders with world-class pharma expertise strengthening the Executive Committee and EUROAPI Board Brendan O’Callaghan, Executive Vice President, Global Head of Industrial Affairs(2) • Joined Sanofi in 2015, Global Head for Biologics since 2016 • Prior roles at Merck & Co, Schering-Plough Roy Papathe
Slide 6: Major progress on potentially transformative therapies
Major progress on potentially transformative therapies Priority Assets Key accomplishments since CMD in Dec 2019 Submission(1) 6 pivotal trials started in additional indications(3) to realize fully Dupixent®(2) the potential of this transformative medicine 2021+e Potential best-in-class safety and e
Slide 7: Making Sanofi more representative of society
Making Sanofi more representative of society Senior leadership People of Color LGBTQIA+ community positions held by women representation at Sanofi U.S. inclusion in our workplace (2025 ambition: ~50%) (2025 ambition: ~37%) • Ambassador program: recruiting ‘safe points of contact’ at French sites +4p
Slide 8: Dupixent – annualizing at €5bn
Dupixent® – annualizing at €5bn • Accelerated performance in Q2 Global Dupixent® quarterly sales (€m) • Worldwide growth of +57% vs. Q2 2020 Ex-U.S. • Added nearly €200m in sales vs. Q1 2021 U.S. 1,243 • In-office patient visits still below pre-COVID levels 982 1,047 296 Ex-U.S. (+90%)(2) 918 • U.S.
Slide 9: Dupixent achieved positive Phase 3 results in CSU
Dupixent® achieved positive Phase 3 results in CSU Dupixent® significantly reduced itch and urticaria activity in patients with CSU • Chronic spontaneous urticaria (CSU) is a debilitating Type 2 inflammatory disease Primary endpoint: Reduction in itch at week 24 Weekly itch severity score (ISS7) • I
Slide 10: Dupixent – large Type 2 population still to be unlocked
Dupixent® – large Type 2 population still to be unlocked Atopic Dermatitis Asthma & CRSwNP Adjacent Type 2 indications(6,7) • First and only biologic • Best-in-class asthma Type 2 2021e Prurigo Nodularis 74k addressing younger population profile(3) approved for ages 12+ ages 6+ 2022e CSU 308k • ~900
Slide 11: Emerging Oncology drove Specialty Care growth in Q2
Emerging Oncology drove Specialty Care growth in Q2 • Rare Disease franchises grew across geographies Q2 2021 sales and growth by franchise • Pompe +15%, Fabry +9%, and Gaucher +2% which reflects phasing in some RoW countries €759m Rare Disease • Avalglucosidase alfa FDA PDUFA August 18, 2021 +9% •
Slide 12: Vaccines – strong growth in Q2 driven by U.S. performance
Vaccines – strong growth in Q2 driven by U.S. performance Vaccines growth by key franchise • Vaccines Q2 2021 sales up 16% +41% €1,022m • Strong growth in U.S. reflected prior year’s low +€14m +126% +€50m base for comparison due to confinements -6% +9% €927m +€97m • Meningitis up 198%, back to pre-p
Slide 13: Vaxelis – first and only U.S. pediatric six-in-one vaccine
Vaxelis™ – first and only U.S. pediatric six-in-one vaccine At least 2 fewer shots in infant vaccination series compared to pentavalent vaccines Available pentavalent options before Vaxelis™ launch New option after Vaxelis™ launch 2 months 2 months 5-in-1 5-6 4 months alternative 3 shots 4 months +
Slide 14: Creation of a first-of-its kind mRNA Center of Excellence
Creation of a first-of-its kind mRNA Center of Excellence • Become a leading mRNA vaccine player within 5 years Vision • New technology added to Sanofi Vaccine’s toolbox & Ambition • Focus on innovative mRNA vaccines beyond pandemic use • Significant investment funded through resource reallocation A
Slide 15: General Medicines delivered on strategic priorities in Q2
General Medicines delivered on strategic priorities in Q2 Strong growth of 6 core assets • Strong performance of core assets, €1.4bn +12%(1) in Q2 2021 • Growth driven by demand for the six key brands and recovery of transplant portfolio(2) €367m(3) +25% • Positive Soliqua® SoliMix data presented at
Slide 16: Consumer Healthcare returned to growth
Consumer Healthcare returned to growth • CHC Q2 sales of €1.1bn with growth across all key CHC Q2 2021 sales up 12% geographies +37% • Digestive Wellness: a key growth contributor in Q2 • Enterogermina®, Buscopan®, Dulcolax® strong growth +24% +21% • Liver care driven by Essentiale® +22% • Accelerat
Slide 17: Prioritization and execution driving pipeline transformation
Prioritization and execution driving pipeline transformation Building a sustainable first-in-class / Addition of best-in-class pipeline cutting-edge technologies 45 NMEs(2) 11% Potential FIC / BIC assets include: • Amcenestrant in breast cancer 25 NMEs • Tolebrutinib in multiple sclerosis Other(1) 3
Slide 18: Amcenestrant – Potential best-in-class endocrine backbone in ER+ breast cancer
Amcenestrant – Potential best-in-class endocrine backbone in ER+ breast cancer across treatment lines Amcenestrant 2/3L monotherapy 1L combination Adjuvant molecular structure with palbociclib Degrader chain Efficacy (Phase 1)(3): Efficacy (Phase 1)(4): N F • CBR of 36% in all patients • ORR of 34%
Slide 19: Q2 advancements in emerging oncology pipeline
Q2 advancements in emerging oncology pipeline SAR’245: Potential SAR’881(3): Potential SAR’419: Proprietary Tusamitamab ravtansine: best-in-class IL-2 first-in-class ILT-2 antagonist off-the-shelf NK cells anti-CEACAM5 ADC Activatory receptors Inhibitory receptors CEACAM5 Costimulatory receptors Pay
Slide 20: Key Pharma R&D milestones expected in H2 2021
Key Pharma R&D milestones expected in H2 2021 CANDIDATE INVESTIGATIONAL INDICATION(S) MILESTONES Prurigo nodularis • Phase 3 data Dupixent®(1) Eosinophilic esophagitis • Phase 3 Part B data Atopic Dermatitis • Phase 3 data in <6yo • Phase 2 pivotal data in 2L/3L monotherapy (AMEERA-3) Amcenestrant E
Slide 21: EPS up 16% driven by sales growth
EPS up 16% driven by sales growth €m Q2 2021 Q2 2020 % Change (CER) Net Sales 8,744 8,207 +12.4% Q2 earnings drivers Other revenues 301 231 +43.3% Gross Profit 6,188 5,778 +13.5% • Accelerated top-line growth Gross margin % 70.8% 70.4% • Gross Margin ratio expansion (70bps at CER) R&D (1,397) (1,352
Slide 22: On track to achieve 2022 BOI margin target of 30%
On track to achieve 2022 BOI margin target of 30% €m H1 2021 H1 2020 % Change (CER) Net Sales 17,335 17,180 +7.2% H1 earnings drivers Other revenues 596 574 +13.6% Gross Profit 12,390 12,247 +7.7% • Top-line growth of 7% driven by Dupixent®, Gross margin % 71.5% 71.3% Vaccines and GenMed core brands
Slide 23: All €450m of incremental savings in H1 reinvested
All €450m of incremental savings in H1 reinvested €1bn target €1bn target €230m Target remaining €500m target COVID related Efficiencies realized in €736m €664m Jan 2020 – Jun 2021 Achieved in 2020 €386m Prioritization Smart spending Operational excellence €0m €350m €100m H1 2021 savings €2.1bn of c
Slide 24: Strong trend of free cash flow improvement continues
Strong trend of free cash flow improvement continues Free Cash Flow(1) evolution +119% €3.6bn Free Cash Flow(1) growth drivers €3.4bn • Business performance • Smart spending initiatives €2.1bn • Asset disposals driving H1 2020 €1.5bn • €682m(2) in H1 20 vs. €247m in H1 2021 • Cash outflow of €558m(3
Slide 25: Expected business dynamics in H2 2021
Expected business dynamics in H2 2021 Specialty Care expected to grow with Dupixent® the key driver; GenMed core assets to grow overall with Lovenox® growth slowing; Pharmaceuticals additional divestitures; China VBP Wave 5 implementation and uncertainties around mechanism for insulin class inclusio
Slide 26: FY 2021 business EPS guidance raised
FY 2021 business EPS guidance raised Around Business EPS 12% at CER(1,2) growth FX impact Approximately -4% to -5%(3) on business EPS based on July 2021 average exchange rates (1) Compared to FY2020 and barring major unforeseen adverse events (2) Base for FY 2020 Business EPS growth is €5.86 and exc
Slide 27: Q&A session
Q&A session Paul Hudson Jean-Baptiste de Chatillon CEO CFO Olivier Charmeil Karen Linehan General Medicines Legal Affairs and General Counsel Julie van Ongevalle John Reed Consumer Healthcare R&D Bill Sibold Thomas Triomphe Specialty Care Vaccines 27
Slide 28: Financial appendices
Financial appendices Q2 2021 results July 29, 2021
Slide 29: Q2 sales and EPS impacted by continued weakening of U.S. dollar and Emerging Markets currencies
Q2 sales and EPS impacted by continued weakening of U.S. dollar and Emerging Markets currencies Currency impact Company sales(1) Business EPS -€480m -€0.11 -8.6% -5.9% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 (1) Main currency impact on Company Sales in Q2 2021: US Dollar (-€317m), Japanese
Slide 30: Net debt evolution in H1 2021
Net debt evolution in H1 2021(1) € 38 € 10 467 € 8 790 € 4 008 -€ 4,534 € 526 € 1 886 -€ 247 Net Debt Net Debt FCF before Proceeds from Asset Restructuring Dividends paid Other (5) Net Debt Net Debt December restructuring, disposals acquisition & similar items to shareholders June 30, December 31, a
Slide 31: 2021 currency sensitivity and Q2 2021 currency exposure
2021 currency sensitivity and Q2 2021 currency exposure 2021 Business EPS Currency Sensitivity Currency Variation Business EPS Sensitivity U.S. Dollar + 0.05 USD/EUR - EUR 0.13 Japanese Yen + 5 JPY/EUR - EUR 0.02 Chinese Yuan + 0.2 CNY/EUR - EUR 0.02 Brazilian Real + 0.4 BRL/EUR - EUR 0.01 Russian R
Slide 32: R&D appendices
R&D appendices Q2 2021 results July 29, 2021
Slide 33: Expected 2021 R&D key timelines
Expected 2021 R&D key timelines Achieved / Product Milestones Comment Missed(1) avalglucosidase alfa U.S. regulatory decision, PDUFA May 18 (Pompe disease) Fast track designation, BTD, Priority review × H2 2021 (3) Libtayo®(2) U.S. regulatory decision, PDUFA Feb 28 (1L NSCLC PD-L1 >50%) Priority rev
Slide 34: R&D Pipeline – Phase III & Registration
R&D Pipeline – Phase III & Registration Phase III Registration Name Description Indication Name Description Indication amcenestrant SERD + palbociclib 1L Metastatic breast cancer Dupixent®(1) Anti-IL4/IL13 mAb Asthma 6-11 years old Libtayo®(1) Anti-PD-1 mAb + chemotherapy 1L NSCLC avalglucosidase al
Slide 35: R&D Pipeline – Phase I & II
R&D Pipeline – Phase I & II Phase I Phase II Name Description Indication Name Description Indication SAR439459 Anti-TGFb mAb Advanced Solid Tumors R amcenestrant SERD Metastatic Breast Cancer 2/3L SAR441000(4) Cytokine mRNA Solid tumors amcenestrant SERD Early Breast Cancer SAR442085 Anti CD38 mAb F
Slide 36: Additional Indications
Expected submission timelines(1) nirsevimab(7) Respiratory syncytial virus amcenestrant mRNA vaccine(5) 2/3L mBC COVID-19 rilzabrutinib fitusiran NMEs Pemphigus Vulgaris Hemophilia A/B olipudase alfa SP0253(4) tusamitamab ravtansine efanesoctocog alfa(6) tolebrutinib itepekimab(3) ASMD ad+ped COVID-
Slide 37: Update on COVID-19 vaccine development programs
Update on COVID-19 vaccine development programs Platform 2021 Expected timeline Q1 Q2 Q3 Q4 May Phase 2 interim data Phase 3 results Recombinant February 1 Phase 2 start and submission Protein June approach(1) Phase 3 start March Phase 1/2 2 mRNA Phase 1/2 start interim data approach(2) Progressing