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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2025

B.10. Derivative financial instruments

B.10.1 Currency derivatives used to manage operating risk exposures

The table below shows operating currency hedging instruments in place as of June 30, 2025. The notional amount is translated into euros at the relevant closing exchange rate.



June 30, 2025						Of which derivatives designated as cash flow hedges						Of which derivatives not eligible for hedge accounting

( € million)	Notional amount		Fair value			Notional amount		Fair value		Of which recognized in equity		Notional amount		Fair value

Forward currency sales		6,619		133			—		—		—		6,619		133

of which US dollar		3,351		100			—		—		—		3,351		100

of which Singapore dollar		539		10			—		—		—		539		10

of which Chinese yuan renminbi		480		14			—		—		—		480		14

of which Japanese yen		253		9			—		—		—		253		9

of which pound sterling		173		2			—		—		—		173		2

Forward currency purchases		4,418		(84	)		—		—		—		4,418		(84	)

of which US dollar		2,540		(55	)		—		—		—		2,540		(55	)

of which Singapore dollar		610		(15	)		—		—		—		610		(15	)

of which Chinese yuan renminbi		277		(5	)		—		—		—		277		(5	)

of which Turkish lira		159		(4	)		—		—		—		159		(4	)

of which United Arab Emirates dirham		120		(5	)		—		—		—		120		(5	)

Total		11,037		49			—		—		—		11,037		49

The above positions mainly hedge material foreign currency cash flows arising after the end of the reporting period in relation to transactions carried out during the six months ended June

30,

2025 and recognized in the balance sheet at that date. Gains and losses on hedging instruments (forward contracts) are calculated and recognized in parallel with the recognition of gains and losses on the hedged items. Due to this hedging relationship, the commercial foreign exchange difference on those items (hedging instruments and hedged transactions) will be immaterial in the second half of 2025.

B.10.2. Currency and interest rate derivatives used to manage financial exposure

The cash pooling arrangements for foreign subsidiaries outside the eurozone, and some of Sanofi’s financing activities, expose certain Sanofi entities to financial foreign exchange risk (i.e. the risk of changes in the value of loans and borrowings denominated in a currency other than the functional currency of the lender or borrower).

That foreign exchange exposure is hedged using derivative instruments (currency swaps or forward contracts) that alter the currency split of Sanofi’s debt once those instruments are taken into account.

The table below shows financial currency hedging instruments in place as of June 30, 2025. The notional amount is translated into euros at the relevant closing exchange rate.



	June 30, 2025

( € million)	Notional amount			Fair value			Maximum expiry date

Cross currency seller swaps		1,476			5

of which US dollar		1,476	(a)		5			2032

Forward currency sales		7,723			176

of which US dollar		6,007	(b)		148			2025

of which Pound sterling		601			7			2025

of which Japanese yen		303			9			2025

Forward currency purchases		3,609			(44	)

of which Singapore dollar		1,289			(14	)		2025

of which US dollar		1,094	(c)		(33	)		2026

of which Hungarian forint		639			7			2025

Total		12,808			137

(a)

Comprises two cross currency swaps, (i) with a notional amount of $870 million, pay 4.16% receive EUR 2.50%, expiring 2029 and (ii) with a notional amount of $870 million, pay 4.53% receive EUR 3.00%, expiring 2032, designated as a fair value hedge of the exposure of an equivalent amount of cash & cash equivalents to fluctuations in the EUR/USD spot rate. As of June 30, 2025, the fair value of the swaps was an asset of €5 million, with €18 million debited to

Other comprehensive income

under the cost of hedging accounting treatment.

(b)

Includes forward sales with a notional amount of $3,615 million expiring in 2025, designated as a hedge of Sanofi’s net investment in Bioverativ. As of June 30, 2025, the fair value of these forward contracts represented an asset of €77 million; the opposite entry was recognized in

Other comprehensive income

, with the impact on financial income and expense being immaterial.

(c)

Includes forward purchases with a notional amount of $1,000 million expiring in 2025, designated as a fair value hedge of the exposure of $1,000 million of bond issues to fluctuations in the EUR/USD spot rate. As of June 30, 2025, the fair value of these contracts represented a liability of €25 million, with €0 million credited to

Other comprehensive income

to recognize the hedging cost.

To optimize the cost of debt or reduce the volatility of debt, Sanofi uses derivative instruments (interest rate swaps and cross currency swaps) to alter the fixed/floating rate split of its net debt.

The table below shows instruments of this type in place as of June 30, 2025:



																Of which designated as fair value hedges					Of which designated as cash flow hedges

( € million)	2025		2026		2027		2028		2029 and beyond		Total		Fair value			Notional amount		Fair value			Notional amount		Fair value			Of which recognized in equity

Interest rate swaps

pay capitalized SOFR USD / receive 1.17%		—		—		—		848				848		(54	)		848		(54	)							—

pay 2.08% / receive Euribor 3m		—				850		—		—		850		(7	)							850		(7	)		(3	)

pay capitalized Ester / receive 0.92%		—		—		—		—		650		650		(27	)		650		(27	)		—		—			—

Total		—		—		850		848		650		2,348		(88	)		1,498		(81	)		850		(7	)		(3	)