Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 388

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 388
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 function. An analysis of amortization of software is shown in the table below:

| (€ million)                             | 2024 | 2023(a) | 2022(a) |
| Cost of sales                           |   16 |      14 |       9 |
| Research and development expenses       |    1 |       3 |       1 |
| Selling and general expenses            |   87 |     100 |      82 |
| Other operating expenses                |    1 |       2 |       4 |
| Net income from discontinued operations |    1 |       1 |       1 |
| Total                                   |  106 |     120 |      97 |

(a) Figures for comparative periods (2023 and 2022) have been re-presented on a consistent basis to reflect the classification of Opella as a discontinued

operation .

D.5. Impairment of intangible assets and property, plant and equipment Goodwill When testing goodwill annually for impairment, the recoverable amount is determined for the Biopharma segment on the basis of value in use, as derived from discounted estimates of the future cash flows in accordance with the policies described in Note B.6.1. The value in use of the Biopharma segment was determined by applying an after-tax discount rate to estimated future after-tax cash flows; the rate used for impairment testing of the Biopharma segment in 2024 was 7.25% . The pre-tax discount rate applied to estimated pre-tax cash flows is calculated by iteration from the previously-determined value in use; the rate used for the Biopharma segment was 9.8% . The assumptions used in testing goodwill for impairment are reviewed annually. Apart from the discount rate, the principal assumptions used in 2024 were as follows: • the perpetual growth rate applied to future cash flows for the Biopharma segment was zero ; and • Sanofi also applies assumptions on the probability of success of current research and development projects, and more generally on its ability to renew the product portfolio in the longer term. Value in use (determined as described above) is compared with the carrying amount, and this comparison is then subject to sensitivity analyses by reference to key parameters including: • changes in the discount rate; • changes in the perpetual growth rate; and • fluctuations in operating margin. No impairment of the goodwill would need to be recognized in the event of a reasonably possible change in the assumptions used in 2024 . No