Q2 2011 RESULTS

July 28, 2011

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

labelling and other matters

that

could

affect the availability

or commercial potential

of such

products

candidates, the absence of guarantee

that

the products

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 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, 2010.

Other than as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements.

3

●

Key Highlights●

Christopher A. Viehbacher, Chief Executive Officer

●

Business Performance●

Hanspeter Spek, President, Global Operations

●

David Meeker,

Chief Operating Officer, Genzyme

●

Olivier Charmeil, Senior Vice President, Vaccines

●

R&D Update●

Dr. Elias Zerhouni, President, Global Research & Development

●

Financial Performance●

Jérôme

Contamine, Executive Vice President, Chief Financial Officer

●

Q&A Session

Agenda

KEY HIGHLIGHTS

Christopher A. Viehbacher

Chief Executive Officer

5

€4,561m

€3,341m

Q2 2009 Q2 2010 Q2 2011

Key Genericized Products(1)

Quarterly Sales (€m)

(1)

Key genericized

products include Lovenox®, Taxotere®, Ambien CR®, Eloxatin®, Allegra®, Xyzal®, Xatral®

and Nasacort®

in the U.S.  

as well as Taxotere®, Plavix®

and Aprovel®

in Western Europe(2)

Growth platforms [Emerging Markets, Diabetes, Vaccines excluding

A/H1N1, CHC,  New products (Multaq®

and Jevtana®) , Animal Health] and Genzyme(3)

In Q2 2009, Merial

Joint Venture sales of €490m were not consolidated by Sanofi. With  a 50% share of Merial

Joint Venture sales, Sanofi pro forma 

growth platforms sales would be €3,586m; Q2 2010 and Q2 2011 sales include 100%  of Merial

sales.

Successfully Managing Top Line Transition despite Stronger Generic Pressure in Q2 2011

€1,611m

€2,106m

Q2 2009 Q2 2010 Q2 2011

€773m

Growth Platforms and Genzyme(2,3)

Quarterly Sales (€m)

€5,447m

65% of sales

including

6

As Anticipated, Business EPS(1)

Impacted

by Loss

of High Margin

Blockbusters

€8,307m

Q2 2010 Q2 2011

Total Sales (€m)

(1)

Growth is at CER (Constant Exchange Rates) vs. Q2 2010 ‐

See Business EPS definition on slide 52(2)

Q2 2010 and Q2 2011 sales include 100%  of Merial

sales(3)

Q2 2011 includes Genzyme

sales of €796m(4)

Genzyme

net contribution after financing and transaction costs

€8,349m(3)(2)

€1.90

Q2 2010 Q2 2011

Business EPS (€)

€1.64

+6.9%

-4.0%

-7.4%

-12.1% (4)

7

Oncology DivisionKey Brands from

Genzyme

Genzyme

Integration

Leveraging the Best from Both Companies

Personalized Genetic Health Key Brands

Multiple SclerosisKey Brands(1)

PharmaceuticalsKey Brands from

Genzyme

(1)

Lemtrada™

and Aubagio™

are the registered names submitted to health authorities for investigational agents, respectively alemtuzumab

and teriflunomide. Aubagio™

(teriflunomide) is a product of Sanofi’s

R&D.

™ ™

8

21.120.9

24.7

H1 2010 H2 2010 H1 2011

Unlabeled Released Vials Output (in thousands 400U vial equivalents)

Update on Output for Cerezyme®

and Fabrazyme®

266.2

191.1

271.6

H1 2010 H2 2010 H1 2011

Unlabeled Released Vials Output (in thousands 35mg vial equivalents)

9

Multiple Milestones

Recently

Achieved

●

Dermik -

Divestiture

of dermatology

business unit

●

Jevtana® -

Start of EU roll out in 2nd

line prostate cancer

●

Certifect® -

New parasiticide for dogs

launched

in the U.S.

●

Zaltrap™ (aflibercept) -

Positive Phase III results

in 2nd

line colorectal cancer

●

Lyxumia® (lixisenatide) -

New supportive

Phase III data in Type 2 diabetes

●

Lemtrada™ (alemtuzumab) -

Positive Phase III headline data in treatment-naïve MS

●

semuloparin -

Positive Phase III in VTE prevention

for chemotherapy

treated

patients

●

Hexaxim® -

Licensure

process

started

for 6-in-1 vaccine for Emerging Markets

●

sarilumab -

Positive Phase IIb

results

in rheumatoid

arthritis

●

sarilumab -

Negative

Phase IIb

results

in ankylosing

spondylitis

●

Multaq® (dronedarone) -

PALLAS study

in permanent AF stopped

VTE: Venous Thromboembolism

10

Recent

Appointments

Strengthen

our

Management Team

Peter Guenter Senior Vice President, Global Operations, Europe

David-Alexandre GrosChief Strategy Officer

Anne Whitaker President, North America, Pharmaceuticals

Gregory Irace Senior Vice President, Global Services

11

Growth

Platforms

Delivered

Double-Digit Sales Increase in H1 2011

Emerging Markets +10.5% excluding A/H1N1 vaccines and Genzyme sales(2)

Consumer Healthcare +28.1%

Diabetes Solutions +11.5%

Animal Health +6.7%

Innovative Products +€227m

Vaccines +6.0% excluding A/H1N1 vaccines(3)

Growth Platforms in H1 2011: +12.3% excluding A/H1N1 vaccines and Genzyme sales (1)

Growth is at CER (Constant Exchange Rates)(1)

H1 2011 Growth

Platforms

sales increased

by +17.3% at

CER including

€419m of A/H1N1 vaccine sales in H1 2010  and €796m of Genzyme

sales  in Q2 2011(2)

H1 2011 Emerging

Markets

sales increased

by +4.9% at

CER including

€361m of A/H1N1 vaccine sales in H1 2010  and €115m of Genzyme

sales in Q2 2011(3)

H1 2011 Vaccines sales decreased

by ‐20.3% at

CER when

including

€419m of A/H1N1 vaccine sales in H1 2010 

12

Outlook for 2011 Updated

to Include

Genzyme

H1 2011 H2 2011

●

Lack of H1N1 vaccines sales in Q1 2011

●

Impact of multiple generic entries in H2 2010

●

Loss of exclusivity of Taxotere®

in the U.S. in late Q1 2011

●

Benefit of Genzyme

only in Q2 2011

●

Expected continuous strong sales from growth platforms

●

Sustained cost control

●

Lower relative generic impact compared to prior year

●

Contribution of two full quarters of Genzyme

2011 Business EPS to be 2 to 5% lower than 2010 Business EPS at CER(1,2,3)

barring major unforeseen adverse events

(1)

Growth is at CER (Constant Exchange Rates)(2)

FY 2010 Business EPS: €7.06(3)

This outlook does not assume a return of generics of Eloxatin®

in the U.S.  in 2011. Generic makers (Teva, Fresenius Kabi

(formerly Dabur), Sandoz, 

Mayne/Hospira, MN/Par, Actavis

and Sun) required to cease selling in the U.S. since June 30, 2010 but litigation continues.

BUSINESS PERFORMANCE

Hanspeter Spek,

President, Global Operations

David Meeker,

Chief

Operating Officer, Genzyme

Olivier Charmeil,

Senior Vice President, Vaccines

14

Q2 2011

Fx Impact

Others

GrowthPlatforms

Genzyme

Key GenericizedProducts

Q2 2010

Growth Platforms Delivered +9.5% Growth at CER in Q2 2011 before Adding Genzyme

(1)

Other key genericized

products include  Aprovel®

in Western EU, Nasacort®

and Xatral®

in the U.S.  (2)

Growth platforms: Emerging Markets, Diabetes, Vaccines excluding

A/H1N1, CHC,  New products (Multaq®

and Jevtana®) , Animal Health

(2)

€8,307m

€8,349m

‐€528m

Q2 2011 Group Sales (€m)

‐€778m

+€1,339m

+€9m

Key Genericized Products:●

Taxotere® U.S. & Western EU: -€336m

●

Lovenox® U.S.: -€334m

●

Ambien CR® U.S.: -€103m

●

Allegra® U.S.: -€46m

●

Xyzal® U.S.: -€43m

●

Plavix® Western EU: -€41m

●

Others(1): -€53m

●

Eloxatin® U.S.: +€178m

15

Emerging

Markets

Western 

Europe

(1)

World less North America (USA, 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)

Genzyme

sales in Emerging Markets were €115m in Q2 2011(3)

RoW: Japan, Australia, New Zealand, Canada

Emerging Markets -

Our Largest Geographical Area

12,2%

28,5%

28,9%

30.4%

●

Q2 2011 Emerging Markets(1)

sales of €2,533m, +12.3% at CER

●

+7.1% at CER excluding Genzyme

and A/H1N1(2)

Other Emerging Markets +3.7%

BRIC (Brazil, Russia, India, China)

+14.8%

Sales Split (%)

RoW(3)

U.S.

Q2 2011 Growth Rates at CER excluding Genzyme and A/H1N1

16

€925m

€894m€900m

Q3 2010 Q4 2010 Q1 2011 Q2 2011

Diabetes Sales Growth Accelerated in H1 2011

Sales (€m)

+14.5% at CER

+13.2% at CER+6.7%

at CER+8.8%

at CER

●

Q2 2011 Diabetes sales of €1,168m, +12.4% at CER

●

Strong performance of Lantus®

●

46.2% of U.S. sales from SoloStar®

vs. 32.3% in Q4 2009●

Strong performance in Emerging Markets with sales up +29.3%

●

Accelerating growth of Apidra®

supported by new U.S. commercial approach●

Sales of €53m, +29,5% at CER

●

Positive Phase III results with Lyxumia®

presented at ADA

€969m

17

●

Solid performance of CHC●

Sales of €644m, +17,6% at CER(1)

●

Successful launch of Allegra®

OTC

in the U.S. in March 2011●

Already €143m of sales in H1 2011

●

Outselling Zyrtec®

OTC(2)

●

Launch of Lactacyd®

in China following BMP Sunstone integration

●

New initiatives to build umbrella brands in Europe

€578m

€321m

Q2 2009 Q2 2010 Q2 2011

(1)

Growth at constant perimeter and exchange rate was +9.9% in Q2 2011(2)

Nielsen Food, Drug and Mass excluding Walmart

(represents 54% of All Outlets) through 11/06/2011

Consumer Health Care -

Boosted by Allegra®

OTC

+17.6% at CER

€644mSales (€m)

18

Q2 2009 Q2 2010 Q2 2011

U.S.

Emerging

Markets

Western

Europe

Others

●

Q2 sales of €434m, +17,6% at CER

●

64.2% of Generics sales in Emerging Markets: €279m, +13.8% at CER

●

Authorized generics of Ambien®

CR and Taxotere®

launched

in the U.S.

●

Sales of losartan

generic

up +23.5% at CER

●

Start of Medley roll-out in Latin America

●

Ongoing

initiatives to leverage

Zentiva’s

manufacturing

facility

in Lüleburgaz, Turkey

Generics -

Strong Performance Again in Q2 2011

€434m

Sales (€m)

€381m

€284m

19

Animal Health

-

Growth

despite

Competitive

Challenges

●

Q2 2011 sales of €496m, +1.1% at CER following an early season for fleas and ticks

●

Record Frontline®

sales in H1 2011 of €459m (+4.7% at CER) despite branded generic competition ●

Positive U.S. court ruling barring sales of Cipla

and Velcera’s

generics

of

Frontline Plus®

stayed and decision appealed

●

Withdrawal by Sergeant’s of all their U.S. generic

versions of

Frontline Plus®

in July due to infringement

of Merial

patent

●

Recent launches of Certifect®

and Zactran®

in the U.S.

20

Genzyme

-

A Solid

Quarter

●

Solid Q2 2011 sales of €796m, +16.0% at constant rate and perimeter

●

Strong

performance of PGH up +36.3% at CER

driven by Cerezyme®

and Myozyme®

/ Lumizyme®

●

Solid growth of Synvisc®

boosted by recent launch in Japan and growing uptake of Synvisc-One®

in the U.S.

●

Fill & finish activities discontinued at Allston plant●

Supply constraints for Fabrazyme®

expected until approval of new plant in Framingham, MA

●

Positive top-line results

from

first Phase III study

of Lemtrada™

in MS

+58.3%

+42.0%

+14.6%

Others -3.7%

+3.5%

+17.2%

&

&

Sales Split by Products (Growth Rates at CER)

Lemtrada™

is the registered name submitted to health authorities for the investigational agent alemtuzumab. 

21

H1 2010 H1 2011

Polio/Pertussis/Hib Seasonal InfluenzaMeningitis/Pneumonia BoostersTravel & Endemics OtherPandemic Influenza

Vaccines -

Strong

Seasonal

Flu

in H1 2011

€1,308m+6.0%

at

CER

●

Q2 2011 sales of €706m, +3.4% at CER excluding A/H1N1●

Record seasonal flu in H1 2011: €158m, +41.6% at CER

●

Resilience of Menactra®

in Q2 2011: €97m, -1.4% at CER

●

Strong Q2 2011 sales of Pentaxim®: €65m,+36.8% at CER

●

Fluzone

Intradermal®

granted FDA approval●

Early

shipments

of Fluzone®

in the U.S. as of July 18, 2011

●

Hexaxim®

licensure process started for Emerging Markets

Vaccines Consolidated Sales (€m)

A/H1N1 €419m

R&D UPDATE

Dr. Elias Zerhouni,

President, Global Research & Development

23

Six NME Filings

Expected

in the Next

9 Months

Kynamro™ (mipomersen)–

hoFH

and Severe heFH

in July 2011 in EU and hoFH

in Q4 2011 in the U.S. 1

Visamerin® / Mulsevo® (semuloparin)–

VTE prevention in chemo-treated patients in Q3 2011 in the U.S. and EU 2

Aubagio™ (teriflunomide)–

RMS in Q3 2011 in the U.S. and Q1 2012 in EU3

Zaltrap™ (aflibercept)–

2L-mCRC in Q3 2011 in the U.S. and Q4 2011 in EU4

Lyxumia® (lixisenatide)–

Type 2 diabetes in Q4 2011 in EU5

Lemtrada™ (alemtuzumab)–

RMS in Q1 2012 in the U.S. and EU6

hoFH: Homozygous Familial HypercholesterolemiaheFH: Heterozygous Familial HypercholesterolemiaVTE: Venous Thrombo

Embolism

RMS: Relapsing Forms of Multiple SclerosismCRC: Metastatic Colorectal CancerNME: New Molecular Entity

24

-

A Promising Investigational Agent for MS

CARE-MS I CARE-MS II

Patients 581 840

Study Duration 2 years 2 years

Patient Population

Treatment naïve

Treatment experienced

Treatment Arms

Alemtuzumab vs. IFNβ

1aAlemtuzumab

vs. IFNβ

1a

Co-primary Outcomes

Relapse RateDisability

Progression

Relapse RateDisability

Progression

Data Timing Jul 2011 Q4 2011

●

Positive CARE-MS I Phase III top-line results released●

55% reduction in relapse rate over 2 years compared to Rebif®

●

Non statistically significant result on time to 6-month SAD (HR=0.70, p=0.22)

●

Safety profile consistent with Phase II clinical trial experience

●

Planned U.S. and EU filings in early 2012

●

Fast track status granted by FDA in 2010

Lemtrada™

is the registered name submitted to health authorities for the investigational agent alemtuzumabSAD: Sustained Accumulation of Disability

FINANCIAL PERFORMANCE

Jérôme

Contamine

Executive Vice President, Chief Financial Officer

26

8,307 8,349

-6.4%

Q2 2010 Growth withoutGenzyme

Genzyme FX Impact Q2 2011

USD : -386VEF : -45CNY : -18TRY : -17

Genzyme

Sales Overcompensate

for Negative

Fx Impact and Sales Decline

in Q2 2011

+6.9%Q2 2011 sales (€m)

VEF: Venezuelan BolivarCNY: Chinese YuanTRY: Turkish Lira

‐4.0%

+10.9%

+0.5%

27

Q2 2011 P&L Reflects

Shift in Business Mix and Genzyme

Consolidation

€m Q2 2011 Q2 2010 % Change

(reported €)

% Change

(CER)

Net sales 8,349 8,307 +0.5% +6.9%

Other

revenues 422 412 +2.4% +14.1%

Cost of sales (2,588) (2,209) +17.2% +22.3%

Gross profit 6,183 6,510 -5.0% +1.8%

R&D (1,197) (1,119) +7.0% +12.6%

SG&A (2,268) (2,125) +6.7% +13.3%

Other current operating income & expenses 7 27 - -

Share of Profit/Loss of associates 278 248 - -

Minority interests (58) (70) - -

Business operating income 2,945 3,471 -15.2% -9.5%

Business operating margin 35.3% 41.8% - -

CER: constant exchange rates 

28

As Expected, Further

Generic

Competition

Leads to Slight

Increase

in CoS

in Q2 2011 vs. Q1 2011

Cost of Sales (%)

31.0%30.4%

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

●

Higher Cost of Sales in Q2 2011 vs. Q2 2010 due to:

●

Loss of sales of €778m from key genericized

products with relatively low Cost of Sales

●

Cost of Sales ratio relatively stable vs. Q1 2011

●

Aligned with expected Cost of Sales level for FY 2011

●

Genzyme

CoS

ratio slightly better than Group ratio

29

14.3%14.1%

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Increase

in R&D Expenses

in Q2 2011 Driven

by the Addition of Genzyme

R&D Costs

R&D/Sales Ratio (%)●

Q2 2011 R&D expenses of €1,197m, up 12.6% at CER

driven by:

●

Addition of €135m of R&D expenses from Genzyme

●

Stable R&D expenses at CER excluding Genzyme

●

R&D/Sales ratio slightly up vs. Q1 2011 to 14.3% as a result

30

Increase

in SG&A Expenses

in Q2 2011 prior to Implementation of Cost Synergies from Genzyme

SG&A/Sales Ratio (%)

27.2%24.8%

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

●

Q2 2011 SG&A expenses of €2,268m, up +13.3% at CER

●

Higher G&A expenses due to Genzyme

●

SG&A expenses almost stable excluding Genzyme

●

SG&A/Sales ratio up in Q2 2011 vs. Q2 2010 (25.6%) reflecting:

●

Stable ratio of Selling Expenses to Sales ratio

●

Higher G&A to Sales ratio

●

Ramp up of Genzyme

synergies expected to lead to improvement in the coming year

31

€m Q2 2011 Q2 2010 % Change

(reported €)

% Change

(CER)

Business operating income 2,945 3,471 -15.2% -9.5%

Net financial

expenses (100) (95) - -

Income

tax

expense (695) (898) - -

Effective tax rate -26.5% -28.1% - -

Business net income 2,150 2,478 -13.2% -7.0%

Net margin 25.8% 29.8% - -

Business EPS € 1.64 € 1.90 -13.7% -7.4%

Business EPS Down -7.4%

at CER in Q2 2011

CER: constant exchange rates 

32

Benefiting

from

Low

Cost

of Debt

for Genzyme

€9,3bn

Q2 2010 Q2 2011

Average Gross Debt (€m)

€20.5bn4,1%

Q2 2010 Q2 2011

Average Rate (%)

2.0%

A decrease

of 2.1%

33

Significant

Cost

Synergies Expected

from

the Acquisition of Genzyme

Synergies Split

0% 10% 20% 30% 40%

Others

Support Functions and IS

Industrial Affairs

R&D

Operations

●

Level of cost synergies expected to reach $700m by end of 2013

●

Around 30% of 2010 OpEx

baseline

●

Main drivers of cost

synergies:

●

Integration

of Oncology

in Sanofi

●

R&D sharing platform

and leveraging

Boston as a hub for Sanofi in the U.S.

●

Focus on purchasing

and CapEx

efficiency

in IA

●

Shared

organisation for support functions

per country/region

34

Net Debt

of €13.2bn at

the End of Q2 2011

Net Debt                 Mar  31, 2011

Net Cash fromOperatingActivities CapEx

Acquisitions &Licensing

Dividends  &Share

RepurchaseRestructuring        Costs & Others

Net Debt                 Jun 30, 2011

- €13,231m

- €428m+ €2,016m

- €13,617m

+ €265m

+€16m

- €1,483m

(1)

Excluding Restructuring Costs(2)

Including €1,372m for dividends and €111m for acquisition of treasury shares

(1) (2)

Illustrative

35

Continuing to Invest in Sustainable Growth in H1 2011

●

Double-digit sales increase of growth platforms in H1 2011 excluding Genzyme and A/H1N1(1)

●

Significant generic headwind of >€1.3bn in H1 2011

●

Limited erosion of Business EPS in H1 2011, down 6.7% excluding impact of A/H1N1

●

On-track to deliver the €2.0bn cost savings objective of by end of 2011(2)

●

Integration of Genzyme

progressing according to plan

(1)

Growth platforms [Emerging Markets, Diabetes, Vaccines excluding

A/H1N1, CHC,  New products (Multaq®

and Jevtana®) , Animal Health] and Genzyme(2)

Before inflation and tax on a constant structure basis vs. 2008(3)

In Q2 2009, Merial

Joint Venture sales of €490m were not consolidated by Sanofi

With  a 50% share of Merial

Joint Venture sales, sanofi‐aventis pro forma growth platforms sales would be €3,586m(4)

Q2 2010 and Q2 2011 sales include 100%  of Merial

sales, respectively €524m and €496m(5)

Q2 2011 includes Genzyme

sales of €796m 

Proportion of Sales from

Growth

Platforms

(1)

Q2 2009

44.9%

Q2 2010

54.9%

Q2 2011

65.2%

(3) (4) (4, 5)

APPENDICES

R&D

37

Late Stage Pipeline –

Pharma & Vaccines

N New Molecular Entity

G GenzymeCentral Nervous System

Genetic diseases

OncologyMetabolic Disorders

Vaccines

Internal Medecine

RegistrationPhase III

Biosurgery

* ORIGIN: Evaluation of Lantus®

in reducing cardiovascular morbidity & mortality

iniparib (BSI-201)

mTNBC; squamous

LC

otamixaban Direct Xa

inhibitor ACS

eliglustat tartrateGlucosylceramide

synthetase

inhibitorGaucher

disease

Hexaxim™ DTP-HepB-Polio-Hib

vaccine

Zaltrap™ (aflibercept)

VEGF-Trap 2nd

line mCRC; 1st line mHRPC

semuloparin (AVE5026)

Indirect Xa/IIa

inhibitor

VTE prevention in cancer patients

atalurenTranscription modulator

Cystic fibrosis

Plavix®

clopidogrel

bisulfate Pediatric, EU; Stent, Japan

ombrabulin (AVE8062)

Vascular disrupting agent

Sarcoma

Plavix®

clopidogrel

bisulfate PAD, Japan

MACI®Cell-based treatment

Articular

cartilage defects

mipomersenApolipoprotein

B-100 antisensehoFH

and severe heFH

(EU)

prochymalMesenchymal

stem cellGraft-versus-host disease

Lantus®

insulin glargine

ORIGIN*; Pediatric, EU

Quadracel®

Diphtheria, tetanus, pertussis

& polio vaccine; 4-6 y of age

Clolar® / Evoltra®

Purine

analogueAdult acute myeloid leukemia (AML)

lixisenatide (AVE0010)

GLP-1 agonist Type 2 diabetes

Fluzone® QIV IM Quadrivalent

inactivated influenza

vaccine

teriflunomide Multiple sclerosis

(monotherapy, adjunct therapy & CIS)

mipomersenApolipoprotein

B-100 antisensehoFH

(U.S.)

Dengue Mild-to-severe

dengue fever vaccine

LemtradaTM (alemtuzumab) Anti-CD52 mAb

Multiple sclerosis

Recombinant human TSH Modified (rhTSH-M)

Goiter

DTP-HepB-Polio-Hib Pediatric hexavalent

vaccine

Allegra®

fexofenadine

Dry syrup, Japan

N

G

G

G

N

N

N

N

N

N

N

NG

G

N

N

G

G

Thrombosis

NG

38

Early Stage Pipeline –

Pharma & Vaccines

N New Molecular Entity

G GenzymeCentral Nervous SystemCardiovascularGenetic diseases

OncologyMetabolic Disorders

Vaccines

Internal Medecine

Phase II

Ophthalmology

iniparib (BSI-201)

Ovarian cancer, non-squamous

NSCLC, neoadjuvant

breast cancer

FOV1101 FDC prednisolone/ cyclosporine

Allergic conjunctivitis

SAR231893 Anti-IL4 mAb

Asthma; Atopic dermatitis

Zaltrap™ (aflibercept)

VEGF-Trap 1st line colorectal cancer

FOV2302 Plasma kallikrein

inhibitor

Retinal vein occlusion induced macular edema

ferroquine Antimalarial

Malaria

SAR256212 (MM-121)

anti-ErbB3 mAb

Breast cancer

FOV2304 Bradykinin

B1 antagonist

Diabetic macular edema

SAR153191 Anti-IL-6R mAb

RA; Ankylosing

spondylitis

SAR245408 (XL147)

Oral PI3K inhibitor

Endometrial cancer

SAR164877 Anti-NGF mAb

Pain

(on clinical hold)

fresolimumab (GC1008)TGFβ

antagonistFibrosis

SAR245409 (XL765)

Oral dual inhibitor of PI3K & mTOR

Cancer

SAR110894 H3 antagonist

Alzheimer's disease

ACAM-Cdiff Clostridium difficile

Toxoid

vaccine

Ombrabulin (AVE8062)

Vascular disrupting agent

Ovarian 2nd

line, NSCLC 1st

line

Multaq®

Antiarrhythmic

agent

Atrial

fibrillation, Japan

Rabies mAb

post exposure prophylaxis

SAR236553 (REGN727)

Anti-PCSK-9 mAb

Hypercholesterolemia

Acid sphingomyelinaseNiemann-Pick type B

Rabies VRVg Purified vero

rabies vaccine

Gene therapy (AAV-AADC)Parkinson's disease

Meninge ACYW conj. 2nd

generation meningococcal

conjugate Infant vaccine

N

N

N

N

N

N

N

N

N

G

G

N

N

G

N

N

N

N

39

Early Stage Pipeline –

Pharma & Vaccines

Phase ISAR153192

Anti-DLL4 mAb

Cancer

Genz644282 Topoisomerase-1 inhibitor

Solid tumors

SAR339658 VLA 2 antagonist

Inflammatory Bowel disease

SAR114137 Cathepsin

S/K inhibitor

OA pain & Peripheral neuropathic pain

SAR3419 Maytansin-loaded anti-CD19 mAb

non-Hodgkin’s lymphoma

Mozobil® (plerixafor)

CXCR4 Antagonist

Tumor Sensitization

SAR113945 IKK-β

inhibitor

Osteoarthritis

SAR152954 H3 antagonist

Sleep disorders

SAR256212 (MM-121) anti-ErbB3 mAb

Solid tumors, ovarian cancer

tasidotin GC1008 topoisomerase

inhibitor tubulin

binding agent

Melanoma

SAR292833 (GRC15300)

TRPV3 antagonist

Neuropathic pain, osteoarthritic

pain

SAR411298 FAAH inhibitor

Cancer pain

SAR103168 Multikinase

inhibitor

AML

Oral clofaribinePurine

analogueMyelodysplastic

syndromes

SAR100842 LPA-1/LPA-3

Internal medicine

Rotavirus Live Attenuated Tetravalent

Rotavirus oral vaccine

SAR650984 Anti-CD38 naked mAb

Hematological malignancies

SAR104772/SAR126119 TAFIa

inhibitor

Acute ischemic stroke

SAR279356 (F598)

Anti-PNAG mAb

Serious infections

Streptococcus pneumonia Meningitis & pneumonia vaccine

SAR302503 (TG101348)

JAK-2 inhibitor

Myelofibrosis, refractory polycythemia

SAR407899 Rho kinase

inhibitor

Diabetic nephropathy

SAR97276 Antimalarial

Malaria

Pseudomonas aeruginosa Antibody fragment product

Prevention of

ventilator-associated pneumonia

SAR566658 Maytansin-loaded anti-DS6

Solid tumors

lixisenatide + Lantus®

GLP-1 agonist + insulin glargine

Type 2 diabetes

SAR156597 IL4/IL13 Bi-specific

mAb

Idiopathic

Pulmonary

Fibrosis

Tuberculosis Recombinant subunit vaccine

SAR307746 (REGN910)

Anti-Ang2 mAb

Cancer

SAR101099 Urotensin

II receptor antagonist

Diabetic nephropathy

Gene therapy (sFLT-01)Age related Macular Degeneration

(AMD)

RetinoStat®

Gene therapy

Wet

age-related

macular

degeneration

(AMD)

SAR125844 Met kinase

inhibitor

Solid tumors

N

N

N

N

N

N

N

N

N

G

G

N

N

G

G

N New Molecular Entity

G GenzymeCentral Nervous System

Genetic diseasesOncologyMetabolic Disorders

VaccinesInternal Medecine

Thrombosis

Ophthalmology

N

N

N N

N

N

N

N

N

N

N

N

NG

N

40

Phase I Phase II Phase III Registration TOTAL

Oncology 10 3 3 0 16

Metabolic Disorders 2 1 1 1 5

Thrombosis 1 0 2 0 3

Central Nervous System 3 2 2 0 7

Internal Medicine 7 4 0 0 11

Ophthalmology 1 3 0 0 4

Genetic Diseases 1 2 2 0 5

Vaccines 4 4 5 1 14

TOTAL 29 19 15 2

R&D Pipeline Summary Table New Molecular Entities (NMEs) and Vaccines

48 17NMEs

& Vaccines

51

65

41

Anticipated

R&D Newsflow

Q3 2011

Q3 2011

Q3 2011

Q4 2011

Q3 2011

Q4 2011

Q3 2011

Q4 2011

Q4 2011

Q4 2011

Q1 2012

Key Milestones

-

Pharmaceuticals Timing

Expected regulatory submission of Zaltrap® in 2nd line mCRC in EU

Phase II results of Zaltrap® in 1st line mCRC (AFFIRM)

Expected regulatory submission of lixisenatide in EU

Phase III top-line results of LemtradaTM in multiple sclerosis (CARE-MS 2)

Lixisenatide in Type 2 diabetes - Further Phase III data presentation

Expected regulatory submission of Zaltrap® in 2nd line mCRC in U.S.

Expected regulatory submission of semuloparin in U.S. and EU

Expected regulatory submission of teriflunomide in U.S.

Phase III top-line results of teriflunomide in multiple sclerosis (TENERE)

Expected regulatory submission of mipomersen in U.S. for hoFH

Expected regulatory submission of teriflunomide in EU

41

Q1 2012Expected regulatory submission of LemtradaTM in MS in U.S. and EU

42

Anticipated R&D Newsflow

Q1 2012

Q4 2011

Q2 2012

Key Milestones

-

Vaccines Timing

Scientific opinion for HexaximTM issued by EMA

Start of Phase III for Fluzone® QIV ID

Start of Phase III for Vaxigrip® QIV IM

42

APPENDICES

FINANCE

44

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 1,311.6 million in the second quarter of 2011 and 1,304.3 million in the second quarter of 2010(1)

In 2010, the results of operations of the Merial

business previously presented as "held‐for‐exchange" were reclassified and included in income from 

continuing operations in accordance with IFRS5 § 36, following the announcement to maintain Merial

and Intervet/Schering‐Plough as two separate 

organizations.

Second-quarter 2011 Pharmaceuticals Vaccines Animal health(1) Other Group Total

Millions of euros Q2 2011 Q2 2010 % change Q2 2011 Q2 2010 % change Q2 2011 Q2 2010 % change Q2 2011 Q2 2010 Q2 2011 Q2 2010 % change

Net sales 7,147 7,035 +1.6% 706 748 (5.6%) 496 524 (5.3%) 8,349 8,307 +0.5%

Other revenues 412 401 +2.7% 5 7 (28.6%) 5 4 +25.0% 422 412 +2.4%

Cost of sales (2,146) (1,806) +18.8% (282) (252) +11.9% (160) (151) +6.0% (2,588) (2,209) +17.2%

As % of net sales (30.0%) (25.7%) (39.9%) (33.7%) (32.3%) (28.8%) (31.0%) (26.6%)

Gross profit 5,413 5,630 (3.9%) 429 503 (14.7%) 341 377 (9.5%) 6,183 6,510 (5.0%)

As % of net sales 75.7% 80.0% 60.8% 67.2% 68.8% 71.9% 74.1% 78.4% Research and development expenses (1,023) (950) +7.7% (139) (130) +6.9% (35) (39) (10.3%) (1,197) (1,119) +7.0%

As % of net sales (14.3%) (13.5%) (19.7%) (17.4%) (7.1%) (7.4%) (14.3%) (13.5%)

Selling and general expenses (1,969) (1,808) +8.9% (137) (148) (7.4%) (161) (167) (3.6%) (1) (2) (2,268) (2,125) +6.7%

As % of net sales (27.6%) (25.7%) (19.4%) (19.8%) (32.5%) (31.9%) (27.2%) (25.6%)

Other current operating income/expenses (20) 67 (2) 10 1 19 (41) 7 27

Share of profit/loss of associates* 276 255 2 (7) 278 248

Net income attributable to non-controlling interests (58) (72) 1 1 (58) (70)

Business operating income 2,619 3,122 (16.1%) 153 219 (30.1%) 155 173 (10.4%) 18 (43) 2,945 3,471 (15.2%)

As % of net sales 36.6% 44.4% 21.7% 29.3% 31.3% 33.0% 35.3% 41.8% Financial income and expenses (100) (95)

Income tax expense (695) (898)

Tax rate** 26.5% 28.1%

Business net income 2,150 2,478 (13.2%)

As % of net sales 25.8% 29.8%

Business earnings per share*** (in euros) 1.64 1.90 (13,7%)

45

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 1,308.6 million in the first semester of 2011 and 1,305.8 million in the first semester of 2010(1)

In 2010, the results of operations of the Merial

business previously presented as "held‐for‐exchange" were reclassified and included in income from 

continuing operations in accordance with IFRS5 § 36, following the announcement to maintain Merial

and Intervet/Schering‐Plough as two separate 

organizations.

First-half 2011 Pharmaceuticals Vaccines Animal health(1) Other Group Total

Millions of euros H1 2011 H1 2010 % change H1 2011 H1 2010 % change H1 2011 H1 2010 % change H1 2011 H1 2010 H1 2011 H1 2010 % change

Net sales 13,730 13,476 +1.9% 1,308 1,692 (22.7%) 1,090 1,037 +5.1% 16,128 16,205 (0.5%)

Other revenues 816 786 +3.8% 10 12 (16.7%) 9 9 835 807 +3.5%

Cost of sales (4,073) (3,531) +15.3% (550) (552) (0.4%) (327) (303) +7.9% (4,950) (4,386) +12.9%

As % of net sales (29.7%) (26.2%) (42.1%) (32.6%) (30.0%) (29.2%) (30.7%) (27.1%)

Gross profit 10,473 10,731 (2.4%) 768 1,152 (33.3%) 772 743 +3.9% 12,013 12,626 (4.9%)

As % of net sales 76.3% 79.6% 58.7% 68.1% 70.8% 71.6% 74.5% 77.9% Research and development expenses (1,963) (1,943) +1.0% (264) (247) +6.9% (70) (75) (6.7%) (2,297) (2,265) +1.4%

As % of net sales (14.3%) (14.4%) (20.2%) (14.6%) (6.4%) (7.2%) (14.2%) (14.0%)

Selling and general expenses (3,614) (3,373) +7.1% (264) (284) (7.0%) (322) (306) +5.2% (1) (2) (4,201) (3,965) +6.0%

As % of net sales (26.3%) (25.0%) (20.2%) (16.8%) (29.6%) (29.5%) (26.0%) (24.5%)

Other current operating income/expenses 42 168 (1) (2) (7) 6 (11) (70) 23 102

Share of profit/loss of associates* 559 491 (2) (8) 13 8 570 491

Net income attributable to non-controlling interests (136) (150) 1 1 (136) (148)

Business operating income 5,361 5,924 (9.5%) 237 612 (61.3%) 373 369 +1.1% 1 (64) 5,972 6,841 (12.7%)

As % of net sales 39.0% 44.0% 18.1% 36.2% 34.2% 35.6% 37.0% 42.2% Financial income and expenses

(178) (140)

Income tax expense (1,474) (1,796)

Tax rate** 27.5% 28.2%

Business net income 4,320 4,905 (11.9%)

As % of net sales 26.8% 30.3%

Business earnings per share*** (in euros) 3.30 3.76 (12,2%)

46

Reconciliation of Business Net Income to Consolidated Net Income Attributable to Equity Holders of Sanofi

(1)

The results of operations of the Merial

business previously presented as “held‐for‐exchange”

were reclassified and included in income from continuing operations 

in accordance with IFRS5 §36, following the announcement to maintain Merial

and Intervet/Schering Plough as two separate organizations. (2)

Of which amortization expense generated by the remeasurement of intangible assets as part of business combinations: €

921 million in the second quarter of 2011 

(including Aventis: €523 million, Genzyme

€242 million and Merial

€84 million) and € 900 million in the second quarter of 2010. (3)

In 2011: “Catch up”

in respect of 2009 and 2010 depreciation and amortization expense on PP&E* and intangible assets of Merial, previously classified as “Assets 

held for sale or exchange”

(IFRS5 § 27).(4)

Based on an average number of shares outstanding of 1,311.6 million in the second quarter of 2011 and 1,304.3 in the second quarter of 2010.* Property, Plant and Equipment.

Millions of euros Q2 2011 Q2 2010(1) % change

Business net income 2,150 2,478 (13.2%)

Amortization of intangible assets(2) (965) (954)

Impairment of intangible assets (37) (108)

Fair value remeasurement of contingent consideration liabilities (20)

Expenses arising from the impact of acquisitions on inventories (262) (72)

Restructuring costs (345) (23)

Other gains and losses, and litigation(3)

Discontinuation of depreciation of PP&E* (IFRS5) 21

Tax effect of : 492 377 Amortization of intangible assets 296 318

Expenses arising on the workdown of acquired inventories 78 26

Restructuring costs 108 7 Other items 10 26

Other tax items (5)

Share of items listed above attributable to non-controlling interests 1

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

(7) (8)

Net income attributable to equity holders of sanofi 1,006 1,707 (41.1%)

Consolidated earnings per share(4) (in euros) 0.77 1.31 (41,2%)

47

Reconciliation of Business Net Income to Consolidated Net Income Attributable to Equity Holders of Sanofi

(1)

The results of operations of the Merial

business previously presented as “held‐for‐exchange”

were reclassified and included in income from continuing operations in 

accordance with IFRS5 §36, following the announcement to maintain Merial

and Intervet/Schering Plough as two separate organizations. (2)

Of which amortization expense generated by the remeasurement of intangible assets as part of business combinations: €

1,607 million in the first semester of 2011 

(including Aventis: € 1,059 million, Genzyme: € 242 million and Merial

€

165 million) and €

1,701 million in the first semester of 2010.(3)

In 2011: “Catch up”

in respect of 2009 and 2010 depreciation and amortization expense on PP&E* and intangible assets of Merial, previously classified as “Assets held 

for sale or exchange”

(IFRS5 § 27).(4)

Based on an average number of shares outstanding of 1,308.6 million in the first semester of 2011 and 1,305.8 in the first semester of 2010.* Property, Plant and Equipment.

Millions of euros H1 2011 H1 2010(1) % change

Business net income 4,320 4,905 (11.9%)

Amortization of intangible assets(2) (1,701) (1,802)

Impairment of intangible assets (69) (108)

Fair value remeasurement of contingent consideration liabilities (66)

Expenses arising from the impact of acquisitions on inventories (264) (134)

Restructuring costs (467) (190)

Other gains and losses, and litigation(3) (517)

Discontinuation of depreciation of PP&E* (IFRS5) 39

Tax effect of : 1,002 726

Amortization of intangible assets 559 600 Expenses arising on the workdown of acquired inventories 78 43

Restructuring costs 150 63

Other items 215 20 Other tax items (1)

Share of items listed above attributable to non-controlling interests 1

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

(14) (15)

Net income attributable to equity holders of sanofi 2,224 3,421 (35.0%)

Consolidated earnings per share(4) (in euros) 1.70 2.62 (35.1%)

48

Consolidated Income Statement

(1)

The results of operations of the Merial

business previously presented as “held‐for‐exchange”

were reclassified and included in income 

from continuing operations in accordance with IFRS5 §36, following the announcement to maintain Merial

and Intervet‐Schering Plough 

as two separate organizations.

Millions of euros Q2 2011 Q2 2010(1) H1 2011 H1 2010(1)

Net sales 8,349 8,307 16,128 16,205

Other revenues 422 412 835 807

Cost of sales (2,850) (2,269) (5,214) (4,496)

Gross profit 5,921 6,450 11,749 12,516

Research and development expenses (1,197) (1,117) (2,297) (2,260)

Selling and general expenses (2,268) (2,118) (4,201) (3,955)

Other operating income 73 91 191 243

Other operating expenses (66) (64) (168) (141)

Amortization of intangible assets (965) (954) (1,701) (1,802)

Impairment of intangible assets (37) (108) (69) (108)

Fair value remeasurement of contingent consideration liabilities (20) (66)

Restructuring costs (345) (23) (467) (190)

Other gains and losses, and litigation (517)

Operating income 1,096 2,157 2,454 4,303

49

Consolidated Income Statement

(1)

The results of operations of the Merial

business previously presented as “held‐for‐exchange”

were reclassified and included in income 

from continuing operations in accordance with IFRS5 §36, following the announcement to maintain Merial

and Intervet‐Schering Plough 

as two separate organizations.

Millions of euros Q2 2011 Q2 2010(1) H1 2011 H1 2010(1)

Operating income 1,096 2,157 2,454 4,303

Financial expenses (133) (111) (234) (214)

Financial income 33 16 56 74

Income before tax and associates and joint ventures 996 2,062 2,276 4,163

Income tax expenses (203) (526) (472) (1,071)

Share of profit/loss of associates and joint ventures 271 240 556 476

Net income 1,064 1,776 2,360 3,568

Net income attributable to non-controlling interests 58 69 136 147

Net income attributable to equity holders of sanofi 1,006 1,707 2,224 3,421

Average number of shares outstanding (million) 1,311.6 1,304.3 1,308.6 1,305.8

Earnings per share (in euros) 0.77 1.31 1.70 2.62

50

Change in Net Debt

(1)

Excluding restructuring costs.(2)

In 2011: (13,528)M€

related to Genzyme

acquisition(3)

In 2011: foreign exchange effect on net debt +384 M€

Millions of euros H1 2011 H1 2010

Business net income 4,320 4,905

Depreciation, amortization and impairment of property, plant and equipment and intangible assets 555 527

Net gains and losses on disposals of non-current assets, net of tax (35) (81) Other non cash items 276 436

Operating cash flow before changes in working capital (1) 5,116 5,787

Changes in working capital (1) (754) (844)

Acquisitions of property, plant and equipment and software (768) (629)

Free cash flow (1) 3,594 4,314

Acquisitions of intangibles, excluding software (64) (157)

Acquisitions of investments, including assumed debt(2) (13,935) (1,789)

Restructuring costs paid (353) (571)

Proceeds from disposals of property, plant and equipment, intangibles, and other non-current assets, net of tax 71 75

Issuance of sanofi shares 28 11

Dividends paid to sanofi shareholders (1,372) (3,131)

Acquisition of treasury shares (113) (321)

Disposals of treasury shares, net of tax 1 57

Other items(3) 489 (213)

Change in net debt (11,654) (1,725)

51

Simplified Consolidated Balance Sheet

ASSETS € million 

06/30/11 12/31/10 LIABILITIES & EQUITY  € million 

06/30/11 12/31/10

Property, plant and equipment  10,669 8,155Equity attributable to equity‐holders of sanofi 

52,456 53,097

Intangible assets (including goodwill) 

60,077 44,411Equity attributable to non‐controlling interests 

143 191

Non‐current financial assets, investments in associates, and deferred tax  assets 

6,212 5,619 Total equity  52,599 53,288

  Long‐term debt  13,289 6,695

   Non‐current liabilities related to business combinations and to non‐controlling interests 

1,390 388

Non‐current assets  76,958 58,185Provisions and other non‐current liabilities 

9,704 9,326

 Deferred tax liabilities  6,560 3,808

Inventories, accounts receivable and other current assets 

16,054 13,578 Non‐current liabilities  30,943 20,217

Cash and cash equivalents  6,538 6,465Accounts payable and other current liabilities 

9,078 8,424

 Current liabilities related to business combinations and to non‐controlling interests 

207 98

 Short‐term debt and current portion of long‐term debt 

6,753 1,565

Current assets  22,592 20,043 Current liabilities  16,038 10,087

Assets held for sale or exchange 

44 7,036Liabilities related to assets held for sale or exchange 

14 1,672

Total ASSETS  99,594  85,264  Total LIABILITIES & EQUITY  99,594  85,264

52

Business EPS

●

Sanofi publishes a key non-GAAP indicator in response to the application of IFRS 8. This indicator “Business EPS”, replaced “adjusted EPS excluding selected items”.

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Business EPS is defined as earnings per share attributable to equity holders of Sanofi excluding:●

amortization of intangible assets,●

impairment of intangible assets, ●

fair value remeasurement

of contingent consideration liabilities related to business combinations,

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other impacts associated with acquisitions (including impacts of

acquisitions on associates),●

restructuring costs *,●

other gains and losses (including gains and losses on disposals of non-current assets *),●

costs or provisions associated with litigation *,●

tax effects related to the items listed above as well as effects

of major tax disputes.

*Reported in the line items Restructuring costs  and Gains and losses on disposals, and litigation, which are defined in Note B.20 

to our consolidated financial statements.