Nomura Healthcare Conference

Transcription

1 Nomura Healthcare Conference Sebastien Martel Head of Investor Relations London, July 1st, 2011

2 Forward Looking Statements 2 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-aventis 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 sanofiaventis, 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-aventis, including those listed under Risk Factors and Cautionary Statement Regarding Forward-Looking Statements in sanofi-aventis annual report on Form 20-F for the year ended December 31, Other than as required by applicable law, sanofi-aventis does not undertake any obligation to update or revise any forward-looking information or statements.

3 Q Solid Underlying Sales Performance 3 Q sales reached 7,779m Q sales included 413m of A/H1N1 vaccine sales Excluding A/H1N1, Q sales growth was: +0.1% at CER (1) Total Sales ( m) (3) 7,107m (2) 7,898m A/H1N1 413m 7,485m 7,779m Q Q Q (1) Growth is at CER (Constant Exchange Rates) vs. Q (2) In Q1 2009, Merial Joint Venture sales of 521m were not consolidated by sanofi-aventis With a 50% share of Merial Joint Venture sales, sanofi-aventis pro forma sales would be 7,367m (3) Q and Q sales include 100% of Merial sales of 513m and 594m, respectively

4 Q Getting through the Patent Cliff 4 Q sales of key genericized products reduced by > 1bn vs. Q1 2009: Lovenox U.S. Plavix Western EU Taxotere Western EU & U.S. Eloxatin U.S. (1) Ambien CR U.S. Allegra U.S. Aprovel Western EU Others (2) Key Genericized Products Sales ( m) 2,014m 1,488m 945m Q Q Q (1) Generic makers (Teva, Fresenius Kabi (formerly Dabur), Sandoz, Mayne/Hospira, MN/Par, Actavis and Sun) have been required to cease selling in the U.S. since June 30, 2010 but litigation continues. (2) Other genericized products include Xyzal, Xatral and Nasacort in the U.S.

5 Q Strong Performance from Growth Platforms 5 Sales from growth platforms represented 59.2% of total sales in Q vs. 42.2% in Q An increase of > 1.3bn vs. Q pro forma sales (2) Excluding A/H1N1, our growth platforms grew in Q by +15.5% at CER (1) Growth Platforms Sales ( m) (3) 4,607m 3,002m (2) 4,262m A/H1N1 413m 3,849m Q Q Q (1) Growth is at CER (Constant Exchange Rates) vs. Q (2) In Q1 2009, Merial Joint Venture sales of 521m were not consolidated by sanofi-aventis With a 50% share of Merial Joint Venture sales, sanofi-aventis pro forma growth platforms sales would be 3,262m (3) Q and Q sales include 100% of Merial sales, respectively 513m and 594m

6 Continued Effort to Control Costs in Q Cost of Sales (%) R&D/Sales Ratio (%) SG&A/Sales Ratio (%) 27.6% 30.4% 14.5% 14.1% 23.3% 24.8% Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q1 2011

7 Q Resilient EPS despite Generic Headwind 7 Q Business EPS was of Q Business EPS was related to A/H1N1 vaccine sales Business EPS ( ) Excluding A/H1N1, Q Business EPS was 6.0% lower at CER (1) Q Q (1) Growth is at CER (Constant Exchange Rates) vs. Q Q Business EPS excluding A/H1N1 vaccine sales was flat on a reported basis

8 Stable FCF despite Lack of A/H1N1 in Q and Net Debt Free Status at End of Q Net Debt Dec 31, 2010 Net Cash from Operating Activities CapEx Acquisitions & (2) Licensing Restructuring Costs & Others (3) Net Debt Mar 31, m ,577 +2,346 FCF +2,006 (1) -31 Change in Net Debt +1, (1) FCF: Free Cash Flow before restructuring costs (2) Includes 336m for BMP Sunstone acquisition (3) Includes 162m of restructuring costs

9 Merial - A Fully Owned Consolidated Growth Platform 9 Key Brands #3 Animal Health player (1) with sales of 2bn (2) #1 in Companion Animals and Parasiticides (1) Double-digit growth in Emerging Markets High operating margin (3) Opportunity for synergies New innovative brands, geographic expansion and bolt-on acquisitions to drive future growth (1) Vetnosis 2010 Annual Report (2) FY 2010 Sales: 1,983m (3) FY 2010 Business Operating Margin: 31.3%

10 Genzyme - A New Platform for Sustainable Growth with Near Term Value Drivers 10 Business EPS accretion expected already in 2011 Cost of financing <2% before tax in 2011 Integration progressing well Manufacturing recovery on-track Remediation plan submitted to FDA All fill & finish activities in Allston to be completed by target date of August 2011 Pre-launch activities for Lemtrada TM in MS Detailed identification of synergies ongoing Preliminary R&D portfolio review conducted #1 Delivering high value products

11 Emerging Markets - Expanding our Leadership 11 Q sales in Emerging Markets (1) : 2,386m, +14.6% at CER excluding A/H1N1 (2) Emerging Markets sales exceed the U.S. and Western Europe Q Sales Breakdown RoW (3) 12.5% 30.7% Emerging Markets All growth platforms delivered double-digit growth in EM USA 27.8% Cardio-thrombosis franchise continues to grow: +10.4% at CER 28.9% 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/ New Zealand (2) Emerging markets sales growth including A/H1N1 sales of 355m in Q was +1.0% on a reported basis or -2.6% at CER (3) RoW: Japan, Australia, New Zealand, Canada

12 Consumer Health Care - Doubled Sales in only 2 Years 12 Q sales: 712m, +40.3% at CER CHC driven by organic growth (1) and acquisitions in the U.S. and China Q1 Sales ( m) 339m 491m 712m Allegra OTC successfully launched in the U.S. in March Q sales: 80m Outselling Zyrtec OTC as early as week 2 (2) Already our #1 OTC brand Leveraging the acquisition of Chattem Q Q Q (1) Growth at constant perimeter and exchange rate was +23.0% in Q (2) Nielsen Food, Drug and Mass excluding Walmart (represents 54% of All Outlets) through 3/19/11

13 Generics - An Additional Key Growth Driver 13 Q sales: 414m, +16.9% at CER Authorized generics of Ambien CR and Taxotere launched in the U.S. : 3 rd largest player (1) and among fastest growing generic companies in Europe Q1 Sales ( m) 343m 414m Others Emerging Markets : leader in Brazil (2) and expanding in Latin America 93m Western Europe U.S. Q Q Q (1) Adapted from IMS MIDAS Feb 2011 (2) IMS MIDAS

14 Diabetes - Back to Double-Digit Growth in Q Q1 Sales (1) Q sales: 925m, +13.2% at CER Reacceleration of growth in the U.S. following increase in Share of Voice Stable EU sales: volume growth counter-balanced price cuts Launch of BGStar and i-bgstar in Germany (April) and France (May) +31.4% +19.1% +1.2% +14.7% Q Q Others Emerging Markets Western EU U.S. (1) Growth at constant exchange rates (CER)

15 Vaccines Good Start to the Year 15 Vaccines Consolidated Sales ( m) Q Sales: 602m, +9.6% at CER excluding A/H1N1 (1) Strong Emerging Markets sales of 282m, +37.1% at CER excluding A/H1N1, driven by: Record seasonal flu campaign Solid growth of Good performance of and in the U.S. FDA approval granted for for infants and toddlers A/H1N1 413m Q Q Polio/Pertussis/Hib Meningitis/Pneumonia Travel & Endemics Pandemic Influenza 602m Seasonal Influenza Boosters Other (1) Q sales decreased by -38.3% at constant exchange rates when including 413m of A/H1N1 vaccine sales in Q1 2010

16 New Products - 111m in Q Q sales: 48m 54% share of U.S. patients in 2L mhrpc (1) EC approval on March 18, 2011 Launch in Germany in April Most EU countries expected to launch before the end of 2011 Q1 Sales ( m) 111m 48 Q sales: 63m Revised label Two new major U.S. Managed Care wins with Tier 2 unrestricted status (2) On-going EMA benefit/risk assessment Q Q (1) IntrinsiQ Research Diag Drug LOT - Feb 2011 (2) United Healthcare Medicare and Commercial

17 Some Green Shoots in Late-Stage Development 17 ZALTRAP Multiple milestones over next 12 months

18 Investing in Sustainable Growth 18 Strong double-digit sales growth of our growth platforms (1) On-track to deliver cost savings of 2.0bn by end of 2011 (2) Limited erosion of Business EPS excluding impact of A/H1N1 and Copaxone Strong free cash flow generation lead to net debt free status at the end of March before Genzyme acquisition Proportion of Sales from Growth Platforms (1) Q Q Q (3) (4) (4) 42.2% 51.4% 59.2% (1) Emerging Markets, Diabetes Brands, Vaccines (excluding A/H1N1 sales), Consumer Health Care, New Products and Animal Health (2) Before inflation and tax on a constant structure basis vs (3) In Q1 2009, Merial Joint Venture sales of 521m were not consolidated by sanofi-aventis With a 50% share of Merial Joint Venture sales, sanofi-aventis pro forma growth platforms sales would be 3,262m (4) Q and Q sales include 100% of Merial sales, respectively 513m and 594m