Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 380

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 380
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 and of the effects of undertakings made under agreements entered into with EUROAPI setting out the principles and terms of the legal reorganization carried out ahead of the date of deconsolidation. The principal undertakings made to EUROAPI relate to compensation for: – environmental remediation obligations on non-operational chemical sites in France transferred to EUROAPI, amounting to € 14 million, and – regulatory compliance costs relating to certain state-of-the-art active pharmaceutical ingredients of EUROAPI, capped at € 15 million. These elements collectively resulted in a pre-tax loss on deconsolidation of € 3 million, presented within the line item Other gains and losses, and litigation in the income statement. The tax effect of the deconsolidation was a net gain of € 111 million, presented within the line item Income tax expense in the income statement. The cash impact of the deconsolidation of EUROAPI, presented within the line item Disposals of consolidated undertakings and investments accounted for using the equity method in the statement of cash flows, was a net cash inflow of € 101 million. Sanofi has entered into an agreement with EUROAPI for the manufacture and supply of active pharmaceutical ingredients, intermediates and other substances, which took effect on October 1, 2021 and expires five years after the loss of control. Under the terms of the agreement, Sanofi committed to target annual net sales of approximately € 300 million for a list of specified active ingredients until the agreement expires in 2026. As of December 31, 2022, that commitment amounted to € 1.1 billion. As of the date of deconsolidation, the 30.1% equity interest in EUROAPI is accounted for using the equity method in accordance with IAS 28 (Investments in Associates and Joint Ventures), and the share of EUROAPI profits or losses arising from application of the equity method is excluded from “Business operating income”, the non-IFRS financial indicator used internally by Sanofi to measure the performance of its operating segments.

| F-36 | SANOFIFORM 20-F2024 |

| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |

D.2. Capital and financial risk management information D.2.1. Capital management information In order to maintain or adjust the capital structure, Sanofi can adjust the amount of dividends paid to shareholders, repurchase its own shares, issue new shares, or issue securities giving access to its capital. The following objectives are