Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 297

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 297
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 , the opposite entry for €0.2 million of which was debited from "Other comprehensive income" under the cost of hedging accounting treatment. (c) Includes forward purchases with a notional amount of $ 1,250 million expiring in 2025 , designated as a fair value hedge of the exposure of $ 1,250 million of commercial paper. As of December 31, 2024 , the fair value of these forward contracts swaps represented an asset of € 23 million , the opposite entry for €0.1 million of which was credited to "Other comprehensive income" under the cost of hedging accounting treatment. These hedging instruments generate a net financial gain or loss arising from the interest rate differential between the hedged currency and the euro, given that the foreign exchange gain or loss on the foreign-currency borrowing and loans is offset by the change in the intrinsic value of the hedging instruments. The interest rate differential is recognized within cost of net debt (see Note D.29. to our consolidated financial statements). We may also hedge some future foreign-currency investment or divestment cash flows.

| 176 | SANOFIFORM 20-F2024 |

| PART I                                                              |
| ITEM 11. Quantitative and Qualitative Disclosures about Market Risk |

C. Other foreign exchange risks A significant proportion of our net assets is denominated in US dollars (see Note D.35. to the consolidated financial statements). As a result, any fluctuation in the exchange rate of the US dollar against the euro automatically impacts the amount of our equity as expressed in euros. In addition, we use the euro as our reporting currency. Consequently, if one or more European Union Member States were to abandon the euro as a currency, the resulting economic upheavals – in particular, fluctuations in exchange rates – could have a significant impact on the terms under which we can obtain financing and on our financial results, the extent and consequences of which are not currently foreseeable. Liquidity risk We operate a centralized treasury platform whereby all surplus cash and financing needs of our subsidiaries are invested with or funded by the parent company (where permitted by local legislation). The central treasury department manages our current and projected financing, and ensures that Sanofi is able to meet its financial commitments by maintaining sufficient cash and confirmed credit facilities for the size of our operations and the maturity of our debt (see Notes D.17.1.c. and D.17.1.g. to the consolidated financial statements). We diversify our short-term investments with leading