Sanofi

Hello everyone, this is Thomas Guslaten from the Tenofi IR team. Welcome to the first quarter 2026 conference call for investors and analysts. As usual, you will find the slides on tenofi.com. Please turn to slide number three. Here we have the usual forward-looking statements. We would like to remind you that information presented in this call contains forward-looking statements, which are subject to substantial risk and uncertainties that may cause actual results to differ materially. We encourage you to read the disclaimer in our slide presentation. In addition, we refer you to our new Form 20F on file with the U.S. SEC since February and our French Universal Registration Document for description of these risk factors. As usual, we'll be making comments on our performance using constant exchange rates and other non-IFRS measures. Numbers used are in millions of euros and for the first quarter, unless stated otherwise. Please turn to slide number four. First, we have a short presentation, then we'll take your questions. We aim at keeping it all to one hour, including the questions. We are mindful that other companies are also reporting today. For the Q&A, we have Manuela and Thomas to cover our global businesses, as well as Roy, our General Counsel, and Brendan, Head of Manufacturing and Supply. You can participate in this Q&A in two ways. Either raise your hand and Zoom, or submit your question using the Q&A feature. With that, I now hand you over to Olivier, our Interim CEO.

Hello, everyone, and thank you for joining our conference call. As Thomas mentioned, I'm the Interim CEO before our new CEO, Belen Garrigo, joined Sanofi in May after next week's Annual General Meeting. Before we get started, I also want to thank Paul Hudson for his work as CEO from 2019 to 2026 and his work with the management team here at Sanofi. Now, on results, I'm pleased to report that we delivered a strong start in 2026, with double-digit sales growth and earnings growth, reflecting strong performance across our company. Pharma launches performed well, driven by Ekavit, Altuvio, and Sarkliza. This exemplifies our ability on the commercial side. Modest vaccine growth was led by our expanded PPH portfolio, which now includes the hepatitis B vaccine, Epislav B, following the Dynavax acquisition that closed in February. Other medicines were impacted by the ongoing divestment of legacy medicines and modest contraction in older medicines in the rest of the world. DuPixent continued its strong performance with continued underlying volume growth across indications and market, while dollar growth was boosted from a lower base of comparison in the US in 2025. Overall, the first quarter demonstrated solid progress across our key growth drivers and sets up well for the remainder of the year with guidance and change. Turning now to slide six, our launches continued to drive strong momentum and represented 14% of total sales. The performance was led by Altuvio with 325 million euros in sales, up 42% followed by Befortis with 284 million euros reflecting continued global expansion. Sarclisa grew by 30%. to 167 million euros, driven by higher demand in all geographies, reflecting increased use in the frontline setting. We saw medicines and vaccines from our recent acquisition contribute meaningfully to growth. Ekavit delivered 170 million euros and Epislav B contributed 46 million euros since the completion of the Dynavax acquisition. Recently launched, well-read Tiflia and Micorzo continued to make progress as we expand access for patients. Overall, our launch portfolio grew by 44% versus last year, or approximately 22% excluding acquisitions. The performance of our launches reflects our continued focus on commercial delivery across the business. Turning now to slide 7, DuPixent continued to deliver exceptional sales growth, with first quarter sales approaching 4.2 billion euros. Strong year-over-year growth was driven by continued market penetration across existing and new indications, as well as a lower basis of comparison in the US last year. As shared previously, we anticipate volume-driven growth to continue with some normalization in the second half of the year as new launches annualize and comparison are getting tougher. Dupixent remains the number one prescribed biologic medicine, a crop top specialist in the US, reflecting the confidence of physicians in Dupixent's efficacy and safety profile. This performance underscores our ability to successfully launch and scale across multiple indication and geographies. With the US approval in February in allergic fungal rhinosinusitis, UPIXENT is now approved in nine indications and reach more than 1.4 million patients. Moving now to slide eight, where we outline the multiple options we have in place to sustain value creation for the DuPixent franchise. Let me walk you through each of the three pillars. First, defend. We have a robust patent portfolio of issued patents and pending application with expiration dates running from 2031 to 2045. We have a vigorous defense plan with the expectation to protect DuPixent innovations beyond the US compound patent expiration in March, 2031. Second, extend. We have the potential to extend HupicSense dosing interval to every four weeks to improve patient convenience. We will pursue this through two approaches, a higher dose approach in asthma where development is currently ongoing and a co-formulation approach for which clinical studies are expected to start in the second half of 2026. And third, innovate. we can potentially pursue new molecules to leverage our existing alliance infrastructure to bring new medicines to patients. Together, these three pillars represent multiple complementary options for continued value creation to sustain the long-term durability of the Ludwigsen franchise. Turning now to slide nine. Rare diseases are named rare as they affect relatively few people. fewer than 5 in 10,000 people, according to the EU. And in the US, rare disease affects fewer than 200,000 people. But collectively, rare disease impacts hundreds of millions of individuals worldwide. Many people face years of misdiagnosis and limited treatment options. Sanofi has built a deep, differentiated expertise across rare diseases, spanning from lysosomal storage disease, rare blood disorders, and more recently, systemic mastocytosis disorders. With this, we now have a very sustainable and competitive business. In Q1, this business reached nearly 1.8 billion euros and grew by 20% led by Ekavit and Altuvio. Our growth is fueled by innovation and by new launches, which contribute to almost half of sales. Sanofi's mission in this space is clear, to bring transformative therapies to patients faster and to remain a long-term partner to the rare disease communities we serve. On slide 10, vaccine sales reached 1.3 billion euros in the first quarter, reflecting solid underlying fundamentals. Following the consolidation of Dynavax in February, PPH and booster now include Ebislav B, which grew by 18% on a market pro forma basis. Now, I want to share some recent headlines. A new study published in the Lancet Infectious Diseases showed for the first time the benefit of Befortis in the second season. On top of an 86% reduction in RSV, LRTI, hospitalization in the first season. It demonstrated a 55% reduction in hospitalization for infants immunized in the first season. This underscores Befortis differentiated clinical profile, and long-term value for patients. Additionally, Nuvaxovid, our non-mRNA COVID-19 vaccines, continues to differentiate on tolerability as supported by the data presented at ESC-MID, a key advantage that could help drive higher COVID immunization rates. In the first quarter, our vaccine business demonstrated resilience and depth. We continue to deliver on our commercial priorities, strengthen our pipeline through disciplined business development, and build real world evidence that supports the long-term value. This gives us confidence in the trajectory ahead. Before moving to the financials, I'm pleased to highlight Sanofi's 25 years partnership with the WHO to eliminate sleeping sickness, a neglected disease affecting vulnerable population in Africa. Since 2001, we have achieved three major milestones. In 2009, together with partner, we introduced the first effective and safe combined therapy to treat late-stage sleeping sickness. Then we co-developed with DMDI the first oral treatment, which was approved in 2018. These efforts helped reduce new cases by 98% between 2001 and 2024. In February, Acoziborol, also co-developed with DNDI, received a positive CHMP opinion. Acoziborol is the first single-dose treatment and requires no hospitalization or lumbar puncture. Due to its simplicity, it can be easily administered in a remote village, supporting the WHO goals to eliminate the disease by 2030. Through the Sanofi Foundation, we donate these medicines free of charge to patients. Thank you. And I will now hand over to Francois, our CFO, for more details on the financials.

Thank you, Olivier, and hello to everyone. Starting with slide 13, net sales grew by 13.6% to 10.5 billion euros in the first quarter. Our growth was supported by three main drivers, Dupixent, our recent launches, and recent acquisitions as well. On a like-for-like basis, group sales increased by 12%. At constant exchange rates, both gross profit and margins were up, supported by a favorable product mix and continued operational efficiencies. Operating expenses increased by 7%. This was driven by increased SG&A spent due to 2025 BD and M&A activity, including Blueprint and Dynavax, as well as some one-off items. As a percentage of sales, OPEX came down by 1.9 percentage points, showing the ongoing impact of our efficiency programs. BOI was up by 10.9% and BOI margin was slightly down due to higher profit sharing and the phasing of capital gains, which were approximately 230 million euros last year versus only 40 million euros this year. Our tax rate was in line with the rate of the first quarter of 2025, with a similar additional French corporate income tax contribution in both years. Finally, business EPS grew strongly at 14%, driven by operational leverage. Turning to our 2026 outlook on slide 14, we confirm our guidance of high single-digit sales growth at constant exchange rates, with business EPS expected to grow slightly faster than sales. Please note that we have a tougher comparison base in H2 with Dupixent's new indication launches and the consolidation of Evakit, which started in July 2025. We now expect approximately 400 million euros of capital gains from divestments in 2026. In March, we signed an agreement to divest Medley, our Brazilian generics business, under very favourable market conditions. This incoming disposal will be booked below BOI and is subject to antitrust approvals. We expect to close this transaction at the earliest around the end of 2026. Profit sharing will continue to grow faster than DUPIX themselves and financial expenses are expected to increase this year with higher debt level from BD and M&A activities last year and potentially further deals this year. Finally, I'm pleased to confirm that we will complete our 1 billion euro share buyback program in the coming days. I will now hand over to Oumane for an update on our pipeline.