Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 183

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 183
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 and associated derivatives (€527 million in 2023 versus €239 million in 2022, an increase of €288 million). In addition, a financial expense of €541 million was recognized in 2023 in respect of the liability recognized in the balance sheet for estimated future royalties on US sales of Beyfortus, which was remeasured as of December 31, 2023 to reflect the very successful US launch of the product (see Notes C.2. and D.29. to our consolidated financial statements). 13/ Income before tax and investments accounted for using the equity method Income before tax and investments accounted for using the equity method reached € 6,251 million in 2023 , versus € 9,937 million in 2022 . 14/ Income tax expense Income tax expense represented €1,017 million in 2023 , versus €1,909 million in 2022 , giving an effective tax rate based on consolidated net income of 16.3% in 2023 , compared with 19.2% in 2022 . The reduction in income tax expense was mainly due to a year-on-year increase in net amortization and impairment losses charged against intangible assets (impact of €563 million in 2023 and €268 million in 2022). In addition, a deferred tax asset of €133 million was recognized on the remeasurement of the financial liability recognized in the balance sheet to reflect estimated future royalties on US sales of Beyfortus In 2022, income tax expense included the effect of the reversal of impairment losses relating to ALTUVIIIO (€503 million impact) following FDA approval. The effective tax rate based on business net income is a non-IFRS financial measure (see definition under “— Segment information — Business Net Income” above). It is calculated on the basis of business operating income, minus net financial expenses and before (i) the share of profit/loss from investments accounted for using the equity method and (ii) net income attributable to non-controlling interests. We believe the presentation of this measure, used by our management, is also useful for investors as it provides a means to analyze the effective tax cost of our current business activities. It should not be seen as a substitute for the effective tax rate based on consolidated net income. The table below reconciles our effective tax rate based on consolidated net income to our effective tax rate based on business net income:

| (as a percentage)                                          |  2023 |  202