Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 294

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 294
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,000 |
| %/rating of dominant counterparty |                                     24,8% / AA- |    |                        12,1% /A+ |    |                             |                           20,1 %  /A+ |    |                                  |                                 6 %  /A+ |

(a) Cash equivalents include mutual fund investments of € 4,157 million. (b) The notional amounts are translated into euros at the relevant closing exchange rate as of December 31, 2024 . As of December 31, 2024 , we held investments in euro and US dollar denominated money-market mutual funds. Those instruments have low volatility, low sensitivity to interest rate risk, and a very low probability of loss of principal. The depositary banks of the mutual funds, and of Sanofi itself, have a long-term rating of at least A. Realization of counterparty risk could impact our liquidity in certain circumstances. Foreign exchange risk A. Operating foreign exchange risk A substantial portion of our net sales is generated in countries where the euro, which is our reporting currency, is not the functional currency. In 2024 , for example, 48.7% of our net sales were generated in the United States; 22.0% in Europe; and 29.4% in the Rest of the World region (see the definition in “Item 5. Operating and Financial Review and Prospects — A. Operating results), including countries that are, or may in the future become, subject to exchange controls, of which 6.5% was generated in China and 3.4% in Japan. Although we also incur expenses in those countries, the impact of those expenses is not enough wholly to offset the impact of exchange rates on our net sales. Consequently, our operating income may be materially affected by fluctuations in exchange rates between the euro and other currencies. Sanofi operates a foreign exchange risk hedging policy to reduce the exposure of operating income to exchange rate movements. That policy involves regular assessments of Sanofi’s worldwide foreign currency exposure, based on foreign currency transactions carried out by the parent company and its subsidiaries. Those transactions mainly comprise sales, purchases, research costs, co-marketing and co- promotion expenses, and royalties. To reduce the exposure of those transactions to exchange rate movements, Sanofi contracts hedges using liquid derivative instruments, mainly forward currency purchases and sales, and also foreign exchange swaps. See also “Item 5. Operating and Financial Review and Prospects — A. Operating results