HALF-YEAR FINANCIAL REPORT Table of Contents 1- CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS 1 CONSOLIDATED BALANCE SHEETS ASSETS 1 CONSOLIDATED BALANCE SHEETS SHAREHOLDERS EQUITY AND LIABILITIES 2 CONSOLIDATED

1- CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS ASSETS

The accompanying notes on pages 10 to 50 are an integral part of the condensed half-year consolidated financial statements.

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CONSOLIDATED BALANCE SHEETS SHAREHOLDERS EQUITY AND LIABILITIES

The accompanying notes on pages 10 to 50 are an integral part of the condensed half-year consolidated financial statements.

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CONSOLIDATED INCOME STATEMENTS

The accompanying notes on pages 10 to 50 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 50 are an integral part of the condensed half-year consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

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The accompanying notes on pages 10 to 50 are an integral part of the condensed half-year consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CASH FLOWS

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NOTES TO THE CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2019

Sanofi, 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 (Nasdaq: SNY).

The condensed consolidated financial statements for the six months ended June 30, 2019 were reviewed by the Sanofi Board of Directors at the Board

meeting on July 26, 2019.

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, 2018.

The accounting policies used in the preparation of the consolidated financial statements as of June 30, 2019 comply with international financial

reporting standards (IFRS) as endorsed by the European Union and as issued by the International Accounting Standards Board (IASB). IFRS as endorsed by the European Union as of June 30, 2019 are available via the following web link:

exception of the lease accounting policies described in Note A.1.1, the accounting policies applied effective January 1, 2019 are identical to those presented in the consolidated financial statements for the year ended December 31, 2018.

An amendment has been made to IAS 19, requiring an entity that remeasures a pension obligation due to an event (plan amendment, curtailment or

settlement) to use the new assumptions available as of the date of that event in determining service cost and net interest cost with effect from that date. Applying this amendment did not have a material impact on the condensed consolidated

half-year financial statements.

The other standards and interpretations issued by the IASB and endorsed by the European Union that became applicable on

January 1, 2019 had no impact on the Sanofi consolidated financial statements.

Sanofi early adopted IFRIC 23 (Uncertainty over Income Tax

Treatments) effective January 1, 2018. As described in Note B.12., Non-current provisions and other non-current liabilities , tax exposures relating to

corporate income taxes, which were previously classified as provisions, are presented separately within Other non-current liabilities effective January 1, 2018.

A.1.1. UPDATE TO SIGNIFICANT ACCOUNTING POLICIES EFFECTIVE JANUARY 1, 2019

IFRS 16 became applicable on January 1, 2019, requiring Sanofi to update its lease accounting policies as described below. Most of the leases contracted

by Sanofi relate to industrial and office premises, cars and various items of plant and equipment, with Sanofi as the lessee.

Sanofi recognizes a right-of-use asset and a lease liability for all of its lease contracts, except for (i) leases relating to low-value assets and

(ii) short-term leases (12 months or less). Payments made in respect of leases not recognized on the balance sheet are recognized as an operating expense on a straight line basis over the lease term.

On inception of a lease, the liability for future lease payments is discounted at the incremental borrowing rate, which is a risk-free rate adjusted to

reflect the specific risk profile of each Sanofi entity. Because lease payments are spread over the lease term, Sanofi applies a discount rate based on the duration of those payments.

The payments used to determine the liability for future lease payments exclude non-lease components, but include fixed

payments that Sanofi expects to make to the lessor over the probable lease term (limited to the period within which Sanofi has a unilateral right to extend the lease without the lessor s consent).

After inception of the lease, the liability for future lease payments is reduced by the amount of the lease payments made, and increased to reflect interest

on the liability. In the event of a reassessment or amendment of future lease payments, the lease liability is remeasured.

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After inception of the lease, the

right-of-use asset which is initially measured at cost is depreciated on a straight line basis over the lease term, and tested for impairment as required.

Sanofi recognizes deferred taxes in respect of right-of-use assets and

Note that fixtures are depreciated over their economic life, which is no greater than the lease term as determined under IFRS 16.

A.1.2 IMPACTS OF THE FIRST-TIME APPLICATION OF IFRS 16

Under IAS 17, most of the leases contracted by Sanofi were classified as operating leases in which Sanofi was the lessee.

For most of those leases, the first-time application of IFRS 16 effective January 1, 2019 has resulted in the recognition on the balance sheet of

(i) a liability for future lease payments and (ii) a right-of-use asset. IFRS 16 has also led to the following changes in presentation:

Sanofi has elected the simplified retrospective method for first-time application of IFRS 16, which involves recognizing a

right-of-use asset equal to the amount of the lease liability. Under that method, comparative periods are not restated.

Consequently, for all leases (other than short-term leases and leases of low-value assets), a right-of-use asset was recognized on the balance sheet for an amount equal to the liability for future lease payments, adjusted by the amount of any prepaid or accrued lease

payments. Amounts previously recognized in the financial statements for leases classified as finance leases under IAS 17 have remained unchanged. However, they have been reclassified from Property, plant and equipment to Right-of-use assets.

The lease liability recognized as of

January 1, 2019 has been discounted at an average incremental borrowing rate of 3.5%.

Sanofi has applied the following practical expedients

available under IFRS 16 at the transition date:

Finally, Sanofi has not identified any material embedded leases within service or supply

Impact on the balance sheet at the transition date (a)

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Reconciliation between lease commitments under IAS 17 and lease liabilities under IFRS 16

Repayments of the (undiscounted) lease liability break down as follows: 19% within less than 1 year, 45% between 1 and 5 years, 36% after more than 5 years.

There has been no material change in right-of-use assets between

January 1, 2019 and June 30, 2019.

A.2. USE OF ESTIMATES

The preparation of financial statements requires management to make reasonable estimates and assumptions based on information available at the date the

financial statements are finalized. 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 of the

date of the review of the financial statements. Examples of estimates and assumptions include:

Actual results could differ from these estimates.

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. That rate is applied to business operating income plus

financial income and minus financial expenses, and before (i) the share of profit/loss of investments accounted for using the equity method 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.

A.3. SEASONAL TRENDS