H ALF -Y EAR F INANCIAL R EPORT CONTENTS 1 CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS 2 CONSOLIDATED BALANCE SHEETS ASSETS 2 CONSOLIDATED BALANCE SHEETS LIABILITIES AND EQUITY 3 CONSOLIDATED INCOME STATEMENTS

HALF-YEAR FINANCIAL REPORT

The condensed half-year consolidated financial statements are unaudited.

1 CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS ASSETS

The accompanying notes on pages 10 to 40 are an integral part of the condensed half-year consolidated

financial statements.

2016 Half-Year Financial

CONSOLIDATED BALANCE SHEETS LIABILITIES AND EQUITY

The accompanying notes on pages 10 to 40 are an integral part of the condensed half-year consolidated

financial statements.

2016 Half-Year Financial

CONSOLIDATED INCOME STATEMENTS

The accompanying notes on pages 10 to 40 are an integral part of the condensed half-year consolidated financial statements.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

The accompanying notes on pages 10 to 40 are an integral part of the condensed half-year consolidated

financial statements.

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

2016 Half-Year Financial

The accompanying notes on pages 10 to 40 are an integral part of the condensed half-year consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CASH FLOWS

2016 Half-Year Financial

The accompanying notes on pages 10 to 40 are an integral

part of the condensed half-year consolidated financial statements.

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NOTES TO THE CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2016

Sanofi the parent company,

together with its subsidiaries (collectively Sanofi or the Company ), is a global healthcare leader engaged in the research, development and marketing of therapeutic solutions focused on patient needs.

Sanofi is listed in Paris (Euronext: SAN) and New York (NYSE: SNY).

The condensed consolidated financial statements for the six months ended June 30, 2016 were reviewed by the Sanofi Board of Directors at

the Board meeting on July 28, 2016.

A/ Basis of preparation of the half-year financial statements and accounting policies

A.1. INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

The half-year consolidated financial statements have been prepared and presented in condensed format in accordance with IAS 34 (Interim

Financial Reporting). The accompanying notes therefore relate to significant events and transactions of the period, and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2015.

The accounting policies used in the preparation of the consolidated financial statements as of June 30, 2016 comply with international

financial reporting standards (IFRS) as endorsed by the European Union and as issued by the International Accounting Standards Board (IASB). The accounting policies applied as of June 30, 2016 are identical to those described in the notes to the

published consolidated financial statements as of December 31, 2015.

IFRS as endorsed by the European Union as of June 30, 2016

are available via the following web link:

A.1.1. New standards and amendments issued in 2016

During the first half of 2016 the IASB issued IFRS 16 (Leases), effective for annual periods beginning on or after January 1, 2019,

which aligns the accounting treatment of operating leases with that already applied to finance leases. The IASB also issued clarifications to IFRS 15 (Revenue from Contracts with Customers). The amendments to IFRS 15, which was originally

issued in 2014, do not alter the underlying principles of the standard, but clarify the way in which those principles should be applied. The issues clarified by the amendments are how to (i) identify a performance obligation (the promise to transfer

a good or a service to a customer) in a contract; (ii) determine whether a company is a principal (the provider of a good or service) or an agent (responsible for arranging for the good or service to be provided); and (iii) determine whether the

revenue from granting a license of intellectual property should be recognized at a point in time or over time. Also during the first half of 2016, the IASB issued amendments to IAS 12 (Income Taxes), entitled Recognition of Deferred Tax Assets

for Unrealized Losses . IAS 12 deals with the recognition and measurement of deferred tax assets and liabilities. The amendments clarify how to account for deferred tax assets related to unrealized losses on debt instruments measured at fair

value, to address diversity in practice.

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A.1.2. VaxServe revenues

VaxServe is a U.S.-based Vaccines segment entity, whose activities include the distribution within the United States of vaccines and other

products manufactured by third parties.

In order to improve the clarity of the financial information published by the Company, with

effect from January 1, 2016 VaxServe sales of non-Sanofi products are presented within the line item Other revenues. Previously, all VaxServe sales were recognized within the income statement line item Net sales.

The impact of this presentational change on comparative periods is a reclassification from Net sales to Other

revenues of 210 million for the first half of 2015 and 482 million for the year ended December 31, 2015.

The preparation of financial statements requires management to make reasonable estimates and assumptions based on

information available at the date of the finalization of the financial statements. Those estimates and assumptions may affect the reported amounts of assets, liabilities, revenues and expenses in the financial statements, and disclosures of

contingent assets and contingent liabilities as at the date of the review of the financial statements. Examples of estimates and assumptions include:

Management is also required to exercise judgment in assessing whether the criteria specified in IFRS 5 (Non-Current Assets Held for Sale and

Discontinued Operations) are met, and hence whether a non-current asset or asset group should be classified as held for sale or exchange and whether a discontinued operation should be reported separately. Such assessments are reviewed at

the end of each reporting period based on the facts and circumstances.

For half-year financial reporting purposes, and as allowed under

IAS 34, Sanofi has determined income tax expense on the basis of an estimate of the effective tax rate for the full financial year. This rate is applied to business operating income plus financial income and minus financial expenses, and before (i)

the share of profit/loss of associates and joint ventures and (ii) net income attributable to non-controlling interests. The estimated full-year effective tax rate is based on the tax rates that will be

applicable to projected pre-tax profits or losses arising in the various tax jurisdictions in which Sanofi operates.

Actual results could

differ from these estimates.

A.3. SEASONAL TRENDS

Sanofi s activities are not subject to significant seasonal fluctuations.

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A.4. FAIR VALUE OF FINANCIAL INSTRUMENTS

Under IFRS 13, fair value measurements must be classified using a hierarchy based on the inputs used to measure the fair value of the

instrument. This hierarchy has three levels:

The table below sets forth the principles used to measure the fair value of the principal financial assets and

liabilities recognized by Sanofi in its balance sheet:

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A.5. CONSOLIDATION AND FOREIGN CURRENCY TRANSLATION OF THE FINANCIAL STATEMENTS OF VENEZUELAN

In 2016, Sanofi continues to account for subsidiaries based in Venezuela using the full consolidation method, on the

basis that the criteria for control in IFRS 10 (Consolidated Financial Statements) are still met.

Until the start of 2016, the Venezuelan

foreign exchange system consisted of three exchange rates: (i) the CENCOEX rate, set at a fixed rate of 6.3 bolivars per U.S. dollar and restricted to essential goods; (ii) an administered exchange rate (the SICAD rate),

which was 13.5 bolivars per U.S. dollar as of December 31, 2015 and applied to certain specific business sectors; and (iii) the SIMADI rate, in the region of 200 bolivars per U.S. dollar, applied to specified transactions. In

preparing the consolidated financial statements, the financial statements of the Venezuelan subsidiaries were translated into euros using the SICAD official exchange rate, which was the estimated rate at which the profits generated by

the operations of those subsidiaries would be remitted to the parent.

In February 2016, the Venezuelan government announced a further

reform to the foreign exchange system, which now consists of two categories: