Sanofi (SAN) Earnings Call Transcript & Summary

[Interpreted] Ladies and gentlemen, dear shareholders, good afternoon. I hereby declare open the Annual General Meeting of the Sanofi Company, a meeting which I have the honor of chairing. I would like to thank all shareholders who cast their votes remotely ahead of the meeting and all those currently following the live broadcast. The recording will remain available online after the broadcast. Joining me here today are Olivier Charmeil, Acting Chief Executive Officer; and Jeanne Kehren, Company Secretary. We are now going to call the bureau. I propose that we appoint Jeanne Kehren as Secretary of the meeting. I've asked the company L'Oréal, represented by Mr. Cyril Rolling, and the company Amundi, represented by Ms. Anne-Alexandra Comte, the 2 shareholders present holding the largest number of votes to please act as scrutineers, a role that they have accepted. The auditors are also attending the meeting. Loic Wallaert of the firm Forvis Mazars represents the Board of Auditors, and they will present their reports. [ Eric Miele ], a bailiff, is also attending the meeting. This meeting is filmed and broadcast live on the company's website. Once again, the recording will remain available on the Internet after the broadcast. During this meeting, I'll have an opportunity to share with you about the Board's work during this year, during which we made major decisions for the future of our company. In particular, you'll have an opportunity to become acquainted with Ms. Belén Garijo, whom we chose to serve as Chief Executive Officer. Olivier Charmeil, our Acting Chief Executive Officer, will present about the progress and achievements in 2025; and François-Xavier Roger, our Chief Financial Officer, will share about the financial performance and outlook. This year, once again, we had remarkable results with strong growth driven by Dupixent and the launch of new products. Although some clinical results in our pipeline were disappointing, our current drug portfolio helps us anticipate robust revenue growth and a financial trajectory that can support our investment ambitions. After the presentation by our auditors, Clotilde Delbos will give you details about the resolutions on remuneration. Then you'll be able to ask your questions before we invite you to vote. This year, we'll propose resolutions that will have a strong impact on the company's governance. This Board deeply believes that the decisions made, and subject to your approval, will help us build the future of Sanofi and ensure its future success in the mid and long term. I will now give the floor to Jeanne Kehren for a few details about how this meeting will unfold.

[Interpreted] Thank you, ladies and gentlemen. Dear shareholders, good afternoon. Shareholders have signed the attendance register at the entrance, both in their own names and as proxies. According to the attendance register, the shareholders present or represented hold more than 1/4 of the shares carrying voting rights. We have a quorum, therefore. Indeed, together, they have 851,165,471 shares or 71.18% of shares with voting rights and [ 70.98% ] of usable voting rights. Consequently, although the quorum is not yet definitively established, it is already clear from the attendance register that the meeting is duly constituted and may validly deliberate. On the desk, we have a copy of the notice of meeting sent to registered shareholders, copies and acknowledgments of receipts of the registered letters with acknowledgment of receipts sent to the statutory auditors, a copy of the [Foreign Language] as well dated 13 March '26 containing the Notice of Meeting, a copy of the Journal of Legal [Foreign Language] published on [Foreign Language] and the BLAO (sic) [ BALO ] of 8 April 2026 containing the notice of meeting, the auditor's reports, the attendance register for the meeting, proxies of shareholders represented, as well as all documents required by law made available to shareholders at the registered office of the company within the statutory time limits and sent to those who requested them. The agenda is set out on Page 8 of the Notice of Meeting. Detailed explanations on the resolutions are set out in the Board of Directors' report, which is on Pages 9 and following of the Notice of Meeting, which is available on our website. No draft resolutions or items of the agenda have been submitted by shareholders. Finally, you've received either from Uptevia or your financial intermediary all the documents required by law and related to this meeting. I will now give the floor back to the Chairman.

[Interpreted] This is the third time that I've stood before you as Chairman of the Board of Directors. The year 2025 confirmed the upheavals happening in our industry. The pharmaceutical industry is faced with current uncertainties in the world, but also specific changes. In particular, we've had to adapt to decisions made by the U.S. administration beyond the threat of tariff duties, the so-called most favored nation principle. Imposing a sort of price index on drugs in the U.S. on the prices of a panel of OECD nations has become a major challenge for all pharmaceutical companies. We were able to find an agreement on this topic with the U.S. administration, which preserves the patients' interests as best as we could and also for the company in the next few years, but this will probably remain a major question. China kept asserting itself as an innovation powerhouse with extremely quick development in biotechnology companies, many of them also leveraging intensive use of artificial intelligence. At the same time, we've seen the yet nascent emergence of a European reaction, and some countries like Germany and Denmark have committed to increasing the price of drugs to maintain their access to innovation in spite of fiscal pressures and growing tension between social expenditures and military expenditures. European institutions are becoming aware and have begun taking into account the societal and economic challenges associated to these upheavals with, at the same time, the expected aging of their populations. Whatever the upcoming political changes in U.S., it seems unlikely that the price of drugs will keep following the same momentum as in the past. We need to prepare for gradually stronger constraints on drug prices. We will also need to carry on adapting our strategy to geopolitical constraints coming from the fragmentation of global trade and protectionism of all kinds that is emerging. More than ever, this environment requires that we carry on transforming to strengthen Sanofi's innovation capabilities in terms of R&D and to improve our operating efficiency. The digital transformation and the use of artificial intelligence as well as the exploration of partnerships with China have now become 2 fundamental levers that we need to keep actuating to ensure our sustainable success in the medium and long term. Our ability to adapt and the application of our strategy will allow us to carry on using current and emerging opportunities in terms of innovation, technology and growth for our company. Against this backdrop, we have looked at our priorities for the next growth phase in the group and the best leader to lead this new phase. Paul Hudson's term as a director being up seem to be the best moment to take stock of the past 6 years and to define expectations in terms of leadership for the next few years. I will discuss this decision-making process later in my presentation. But first, a few words about this Board of Directors, and I would first like to thank all our directors for being here today. In 2025, the Board of Directors had sustained activity with 14 meetings and a remarkable attendance rate for its members as well as, for instance, also 14 meetings of the Scientific Committee. Conversations in the Board, strategic seminars as well as training sessions matched our strategic imperatives and the specific points of priority focus that we had identified last year, capital allocation, business development, mergers and acquisitions, productivity and governance of research and development, digital and artificial intelligence, changes on the U.S. market and China strategy. The Board has developed a real team spirit over the last few years. This cohesion helped us leverage as best we could the diversity in skills and experience represented within the Board. Regarding the makeup of the Board, first of all, we suggest that you reappoint Christophe Babule and Jean-Paul Kress, who bring remarkable contribution to our work, the former with his strong financial expertise and in terms of management of a large international firm, the latter with the entrepreneurial and scientific knowledge for his rich and long career in the pharmaceutical sector. Patrick Kron, Independent Director and Chair of the Nominations, Governance and CSR Committee, is ending his third term today, and he will leave the Board. After 12 years serving the Board, he can no longer keep his status as Independent Director, and we wish to keep a high ratio of independent directors. On behalf of the entire Board, I would like to warmly thank Patrick Kron for his decisive contribution to our work as a director and in the various chairmanships and the committees that he had, especially within his involvement in the major decisions for the company's governance. Personally speaking, I would like to say that his astute judgment and his experience as a leader were very precious to me. Thank you very much, Patrick. Based on the recommendation of the Nominations, Governance and CSR Committee, the Board of Directors decided to submit to your approval the appointment of Christel Heydemann as an Independent Director. Christel Heydemann is the CEO of Orange Group, and she will bring her specific perspective as CEO of a listed company in France to the Board, who is facing all major international challenges and also her experience in the technological transformation at large scale. Her understanding of digital uses and the development of AI are strategic priority goals in the changes in the Board's skills. And so we are delighted to welcome her on board the Board. Christel is with us, and please introduce yourself quickly, Christel?

[Interpreted] Thank you, Mr. Chairman. Dear shareholders, I am, of course, delighted to join the Board as -- can you hear me? Is the microphone working?

[Interpreted] Yes. Yes.

[Interpreted] Is it working?

[Interpreted] Yes, better.

[Interpreted] Dear shareholders, I'll be delighted to join Sanofi's Board of Directors. As Frédéric Oudéa explained, for 4 years, I've been leading the Orange Group. Orange, of course, in France is a cell phone carrier. We are the #1 cell phone carrier. We are in major European countries, in 18 African countries. We are present in cybersecurity and business services in the whole world. So of course, we're going through the same upheavals as all major firms on the French index. I trained as an engineer. I served my entire career in French firms, but with a strong international aspect, and I was in Alcatel, then Alcatel-Lucent. And before I became a Director at Orange, I was the CEO of Schneider Electric in France and then in Europe, and so with experience in industry, once again, I'm delighted to be with you today.

[Interpreted] Thank you so much, Christel. If you approve the resolutions put to your vote, we'll have a Board that aligns with our aspirations in terms of skills, in terms of gender diversity. 57% of Board members or employee representatives are women, and as I said, we aim to maintain a high independent ratio for our directors. Amongst the major resolutions put to your vote, we suggest that you approve the appointment of Belén Garijo as the Director. The Board decided to appoint her as CEO to replace Paul Hudson from the 1st of May onwards. This appointment and this suggestion are the outcome of a highly planned and meticulous process. As I mentioned in my introduction, we anticipate this moment when we would take stock and reflect on our strategy when Paul Hudson's reappointment was put to a vote as a director to identify the best leader for the next growth cycle in the firm. The Board and the committee, the Nominations, Governance and CSR Committee had started from the second half of 2024 onwards, a detailed review of succession plans with the use of a first outside consultant. This step led us to conclude that we had many internal talents, but that they were not quite ready to reach the level of CEO. We then extended the exercise with a first tally of outside potential candidates. And then at the end of 2025, with the help of a second consultant, we updated a final list of potential candidates, which the Nominations, Governance and CSR Committee met. Then after interviewing the various candidates, the Board recommended that the Board hear the best outside candidates, namely Belén Garijo. The Board had previously heard Paul Hudson, who had an opportunity to present his experience and his strategic vision for the company for the next few years. As a conclusion of this highly structured process, the Board considered that Belén Garijo was the best candidate to lead the company for the next few years and take up the next challenges. This decision was motivated by Belén Garijo's undisputed expertise and experience, especially in the area of R&D, her successes and initiatives, especially in China and the digital transformation, and her performance and transparency culture. At the end of the process, of course, the Board shared its conclusions with Paul Hudson. It was an opportunity to thank him for the work done during his 6th year as CEO. The Board of Directors is acutely aware of the major challenges that we need to face in an always more uncertain environment and our determination to guide the company towards more productive innovation, more rigorous transformation execution, and demanding operations management to keep growing and preparing the trajectory beyond Dupixent. We are highly confident about our ability to take up these challenges successfully under Belén Garijo's leadership. During this change, we aligned the duration of the terms as CEO and Director, both will now be for a duration of 4 years. We also changed the remuneration structure to better reward long-term value creation. And then to allow for this nomination, we suggest that we align the age limit conditions for the CEO on those of directors, which decide that the person needs to be under 70 years old at the start of their term. I would now like to come back to the strategic outlook for this new term. They are based on 4 essential priorities, which will guide Belén's action for the next 4 years. First of all, strengthen the strategic framework in order to optimize capital and resource allocation, both for internal and external capital investments. Then to give more substance again to the development product pipeline to help the next high medical value product generation emerge and to strengthen R&D, governance and productivity. Thirdly, keep transforming the group, especially in the area of digital and artificial intelligence by leveraging fully the innovation capability in China. And finally, develop our internal talent by promoting a transparency, discipline and rigor culture. This ambition is necessary to ensure that our company is sustainable and resilient. It is with a high sense of responsibilities and values, our values that we made highly structural decisions to carry on transforming Sanofi to ensure its future. Now I'll give the floor to Belén to let her introduce herself.

[Interpreted] Thank you, Mr. Chairman. Ladies and gentlemen, dear directors, dear shareholders, ladies and gentlemen, I would like to thank you for having me today. Thank you for giving me the opportunity to take the floor before you. I am fully aware of how important this moment is for Sanofi and for you as shareholders. I'm also very happy to be back in Sanofi, a company that has profoundly marked my career, a company that is very dear to my heart, and a company I've kept following over the years. I would like to introduce myself and share with you my conclusion and my findings, my ambitions for Sanofi, i.e., define and implement a clear strategy at the group's level, build a strong company with an innovative portfolio, and teams that are fully mobilized and engaged to create sustainable value for the patients and for you, our shareholders. If I may, I would like now to continue in English. Let me start introducing myself, sharing some relevant career milestones and outlining why I am so excited to join Sanofi. I have been a global pharma and life science CEO for over a decade and have worked in the pharma industry for more than 30 years. I have lived and worked in more than 7 countries, including nearly a decade in the U.S. I started my career in research and development, which has remained especially close to my heart and have held different executive roles across my career with national and international remits. In 2013, I joined Merck -- sorry, in 2011, I joined Merck's Healthcare division and became the CEO of Healthcare for Merck in 2013. I successfully brought the business back to growth by reprioritizing and significantly pruning the pipeline, the R&D pipeline, identifying several future blockbuster candidates and reshaping the overall portfolio of Merck. As Merck's Healthcare CEO, I drove clear improvements with a focus on clinical development that yielded 3 launches in 2017 alone, delivering 3 blockbuster drugs with over EUR 1 billion sales annually. In that context, China was an area of particular focus for me. We built a business in China almost from scratch, taking the business from EUR 200 million in 2012 to nearly EUR 1.3 billion in 2024, making China the second largest market for Merck after the U.S. In 2021, I became Merck's Group CEO, repositioning the business towards higher growth with a comprehensive group-wide M&A agenda and a stronger innovation muscle. I also led the rollout of artificial intelligence across the company, which took upskilling thousands of employees across all functions and sectors over the past 2 years. In parallel, I led the transformation of the organization together with my team, simplifying the operating model, building stronger global functions, and most importantly, a high-performing executive team, and also doing that in a context of cost discipline and delivering meaningful cost efficiencies. This element translated into a stronger financial performance with revenues and profits up 20% and shareholder value creation with EPS up by 31% and dividends up by around 50% in the period between 2020 and 2025. Let me also speak briefly about my relevant and favorite leadership principles. I would summarize them under the header of the 3 Ts: truth, trust, transparency. For me, truth is being data-driven and fact-based. Realism and boldness are no contradictions. And as scientists in our industry, we know better than anyone that following data will get us much further than wishful thinking. Trust is the fabric that underpins all productive team constellations. Trust is at the core of high performance and a truly collegial COMEX team. Trust is critical to mobilize an organization as leaders and to ensure that everybody, our teams, our employees deliver the same plan, especially in the challenging and volatile times that the industry is going through. Trust is required to invest in talent, especially in some of the less evident high potential choices I deeply believe in making, and trust is paramount in the relationship between the CEO and the Board. This brings me to transparency. I deeply believe in ongoing transparent engagement with the Board as a true thought partner. I do not believe in surprises, silos or share cuts. And this is what the Sanofi organization, the COMEX, the Board, and you as Sanofi's key shareholders can expect from me. My experience, my track record and leadership principles are, I believe, directly aligned with Sanofi's strategic priorities. Earlier in my career, I spent 15 years working at Sanofi and predecessor companies. I held leadership roles across the group's European and global operations, including Vice President of Pharmaceutical Operations for Europe and Canada. I also led the successful integration of Genzyme, a transformational step that repositioned Sanofi towards higher value specialty care and innovation. But I left Sanofi 15 years ago, and that is a long time in our industry. I know I will find a very different company operating in a very different world. My time here was an important and a highly treasured part of my career, yet I come back not as an insider, but as a seasoned pharma CEO ready to drive profound change and to lead Sanofi into the next phase of growth. And I am very excited to get started. Today, Sanofi has strong foundations. To mention some, global reach and leading positions in key therapeutic areas, solid revenue streams and good financial discipline, a high-quality scientific base and high-quality teams. Sanofi has all the ingredients that are needed to create long-term value and play a leading role in shaping the future of our industry. And this requires clear strategic direction and disciplined execution. We must strengthen the productivity of our innovation engine, take the right level of risk, and consistently translate scientific leadership into high-quality sustainable growth in a post Dupixent era. R&D will be a major priority, requiring a total focus on high-quality and competitive products and a stronger alignment across strategy, capital allocation, digital and artificial intelligence capabilities. As you know, the geopolitical environment is changing at an unprecedented speed, and China is emerging as a critical source of biopharma innovation. We need to capture this opportunity with a future-proof portfolio, operating model and organization. And U.S. policy and tariffs are reshaping the global footprint of economics and the industry. Addressing these internal and external challenges will require strategic clarity and top-performing leadership teams. Importantly, these are the areas in which I bring experience and track record and where I am confident we can deliver meaningful progress. Dear shareholders, I will set clear priorities and an ambitious road map for Sanofi. My approach will combine disciplined near-term execution with a focus on the longer-term strategic transformation of Sanofi's R&D, operating model and technological backbone. I will be clear on where we stand and, together with the team, communicate our strategic direction with transparency, with discipline and with consistency. On that basis, I will keep you updated on the timing of future communication with investors in the coming months. My goal is to create a stronger, more innovative Sanofi, ready to deliver sustainable growth. And I am confident that we can lead Sanofi to achieve this goal and to continue to create value for all our shareholders. My confidence is based not only on experience, but on the quality of the teams that we have in the company and the values we share across the organization. [Interpreted] This will be for me a real pleasure to be back in Sanofi. And I'm delighted to be able to write with you the next step in the company's development. And I promise that I will have a better mastery of French in the future. I'd like to thank you for your attention and for your trust. Thank you.

[Interpreted] Thank you, dear Belén, for sharing with us today your strong personal belief and how much you care about this mission. Finally, I wanted to end this introduction on thanks to Olivier Charmeil, who brilliantly served as Interim CEO to ensure the continuity of business and to prepare for Belén Garijo's arrival in the best conditions. Thanks also go to the management and leadership team who maintained this company's strong momentum during the period. And finally, over the year on the various sites, I've met many Sanofi people whose commitment and pride to work for this firm convinced me about Sanofi's ability to carry on transforming and growing even in a complex and changing environment. And finally, once again, I wanted to share how determined and trustful I am about our ability to successfully build Sanofi's future in our new growth cycle. Thank you for your attention, and I will now give the floor to Olivier Charmeil after a short video about Geraldine, a patient living with chronic obstructive pulmonary disease. Thank you so much. [Presentation]

[Interpreted] Good afternoon, everyone. It is my pleasure to welcome you to this AGM for 2026. For those of you not familiar with me, it was my privilege to join the company more than 30 years ago and to join the Executive Committee more than 10 years ago. Joining and representing Sanofi at this time is an important responsibility. The present conditions is my opportunity to share with you some thoughts. You often referred to revolution in the pharmaceutical industry and Sanofi had its share of it, both organically and outside, with its determination to use technology at the service of health. But the word revolution is justified. Indeed, the world is experiencing turbulence, geopolitical tension, and economic uncertainty, public health challenges combined with an aging population and yet, at the same time, this is an unprecedented period where the combination of science and technology bring about evolution in our field. Revolution or rather development in artificial intelligence is providing an incredible breakthrough moment. It's not just a matter of changing the way in which we discover drugs or produce them in our plants or step up clinical trials, it's more than that because we have a huge field of new opportunities in terms of diagnosis, prevention, forecasting and support, and we're only seeing the beginning of this. This technological and scientific revolution is something that we are building ourselves. It's not something we can see from the outside because we have everything we need. We have outstanding teams, a sound financial base, and of course, an expertise and a culture of scientific excellence, which has always been our hallmark. We are a pharmaceutical company. We are based in France, but we do have an international footprint, because we bring together European, American and Chinese scientific heritage to maximize our global impact. And this unique position provides a valuable asset when it comes to address our next stage of growth in a fragmented world. Of course, both in terms of research and innovation, not everything succeeds, and certainly not the first time around. It's the very nature of science. It works by trial and error, learning, more often errors than trial, and that makes us stronger. But what counts at the end is what we learn from all this. Back in 2025, we achieved significant milestones. And before we go through these milestones, I would like to thank all the Sanofi teams in France and around the world that work every day with passion at the service of patients. Your daily commitment is the very reason why today, we're in a position to proudly share with you the results we have achieved and look to the future with confidence and realism. Let's take a closer look on our achievements in 2025. Over the past few years, we modernized Sanofi in depth, we prioritized our portfolio, we refocused and digitalized our production network, and we simplified our commercial footprint. Our culture is more international. It is more daring. And back in, well, in 2025, in the midst of turbulence, we pursued this effort with only one compass, our [Foreign Language] is to pursue the miracle of science to improve the life of people. And this ambition determined our choices with a view to remain focused on our 4 priorities. The #1 priority, of course, was growth, and we did better than expected. In fact, sales grew by 9.9%. In 2025, we launched 3 revolutionary drugs and vaccines; Qfitlia, which is the first drug that reduces antithrombin in hemophilia patients; Wayrilz, which is the first inhibitor of BTK for immune thrombocytopenia, which is a rare blood disease; and Nuvaxovid, which is the first recombinant vaccine for COVID-19, the first one to receive a full approval in the United States and the European Union. Our existing portfolio kept growing and we'll get back to that, but we also made targeted acquisitions that strengthen our leadership in key therapeutic areas. Our #2 priority, of course, was innovation, and the year was marked by significant progress in our R&D pipeline. We also had less positive results elsewhere, but that was all the more reason for us to go further and faster for patients. But in-house, our scientists pushed our pipeline in key therapeutic areas. We achieved a number of regulatory milestones from rare diseases to vaccines. And we also pushed along promising candidates in development stages. All in all, in 2025, we reinvested almost EUR 20 billion in R&D, in M&A, and business development. And then that commitment for innovation is global, and this is shown by our CapEx worth EUR 1 billion in Beijing to produce insulin. This is a significant progress for millions of diabetic patients, and it demonstrates our ability to build resilient supply chains solidly based in the largest markets in the world. Our #3 priority was to do with operational efficiency and the continuous modernization of our company. We want Sanofi to become a biopharmaceutical company that includes artificial intelligence on a large scale and throughout our value chain. And one of our largest successes over the past few years is the building of our modular plants in France and in Singapore. This is unique in the world. This was designed by Sanofi's own engineers, and they are entirely driven by outstanding teams, of course, but also by AI. Because they are modular, they can produce as many as 4 types of vaccines and biological products simultaneously. In R&D, we apply all the power of data and artificial intelligence to make the most of clinical stages -- of clinical trials, I mean, to work faster and reveal new potentials for assets already in our pipeline. And then finally, our #4 priority was to reinvent the way in which we work. In 2025, our corporate culture continued to evolve. It has become more international, more inclusive. It has become bolder, more agile. And I'll give you 3 tangible examples. Diversity first. Four years ago, gender balance or gender diversity was just a program. Now it is an achievement. If you look at all our people, about 50% are women. And if you look at our top 500 executives, 44% of those are women, and these efforts were rewarded by the International Catalyst Award in 2025. And then confidence. Our annual survey amongst our own people achieved its highest rate since 2022 -- since its launch in 2022. 78% of our employees feel empowered to make decisions and 90% of them believe we have built a strong ethical culture. Finally, simplification and agility. People use artificial intelligence and data on a routine basis to go faster, to save time. And today, more than 1/4 of our people use our own LLMs with more than 13 million conversations generated by AI. 2025 was also a very sound commercial year. We had profitable growth, setting us for sustainable growth for the years 2026 and beyond with EUR 15.7 billion of sales over the year. Dupixent, of course, is at the heart of this performance. But in vaccines, we also consolidated and reinforced our leadership on flu and VRS (sic) [ RSV ], which is responsible for bronchiolitis, with our new and diversified portfolio of differentiated vaccines. Our new products also had outstanding growth to the tune of EUR 5.7 billion, 34% over 1 year, goes to show the strength of our commercial policies. Our sales were driven by Beyfortus and ALTUVIIIO reached EUR 1.2 billion. AYVAKIT, of course, boosted this trajectory with the acquisition of Blueprint Medicines back in July, the good performance of these launches is a clear illustration of the synergy between our commitment for innovation and our ability to implement decisions. Let's look now at our pipeline. We had 20 regulatory approvals and we had many studies that moved from Phase II to III. 10 new molecules entered in Phase I of clinical developments, including 3 in gene therapy. But there were some setback in 2025 for difficult diseases. Science doesn't always move in a linear way, but failures are not, of course, what defines us. Of course, the main thing is to draw lessons from failures and adapt from that. In the coming months, we expect several readouts of clinical trials and regulatory milestones that are critical both for the company and patients in such key therapeutic areas as immunology, rare diseases, and vaccines. Our responsibility as a leading company goes beyond the drugs we manufacture. It reaches out to the world and the communities at large. And thanks to our global health unit, we've been supplying essential medication in 40 countries where the needs are most acute. In 2025, we treated more than 1 million patients. But of course, there's one success that is worth recognizing. Acoziborole, which is the first single-dose treatment for sleeping sickness replaces weeks of medication by a single shot. We got the EMA's approval in February, and we're working with the Sanofi Foundation and the World Health Organization for this to be distributed free of charge to patients. For Sanofi, climate action and work on patients are not separate operations since more than 70% of our portfolio target diseases that are exacerbated by climate change and environmental disruptions. And we can make a difference by reducing our own carbon footprint back in 2025, we were able to cut by 49% our Scope 1 and Scope 2 emissions. We're getting close to our objectives of 55%, and we have 86% of renewable energy. And of course, we have a clear objective. We want to reach carbon neutrality by to be carbon neutral by 2045 throughout our value chain. Ladies and gentlemen, dear shareholders, it is necessary to take a step back and look back at our performance. This is no easy task, but this is our chance to see the reasons that guided our past choices, and I hope we will shed light on our ambitions. As I said, 2025 was a sound performance. We made progress towards our ambition to become a global leader in key therapeutic areas. And these performances are a clear incentive to pursue our transformation and adapt Sanofi to future challenges, especially in the fields of R&D and artificial intelligence. Nonetheless, there's still a long way to go because we have high ambitions for our patients, for the communities, but indeed, for our own people and shareholders. And none of these achievements would have been possible without strong Sanofi teams committed to our ambitions in France and throughout the world. I would like to thank them from the bottom of my heart on behalf of the Executive Committee. And I would also like to thank Frédéric Oudéa and the Board of Directors for their advice as well as our shareholders and partners for the trust they have bestowed upon us. Thank you.

[Interpreted] Well, thank you, Olivier. And now I'll give the floor to François-Xavier Roger, who our CFO, will tell you about financial performance for 2025 with a quick video on another condition atopic dermatitis. [Presentation]

[Interpreted] Ladies and gentlemen, dear shareholders, our numbers for 2025 illustrate our sound economic model with strong growth and profitability. Our revenues were EUR 43.6 billion, up 9.9%, one of the best performance in the pharmaceutical industry. We are in the high end of our guidance and gross margin was up 1.9 percentage points to 77.6% of sales on the constant ForEx with a favorable product mix and productivity gain, our higher OpEx reflects higher CapEx as well for future growth, especially in R&D and marketing expenses for new products. OpEx was down in terms of the percentage because of our efficiency gains. Operational profit was up 11.9%. Operational margin at 28.1% of revenue. Earnings per share was up 12.2%, not including share buybacks in line with our forecast. If we include EPS, share buybacks EPS was up 15%. This performance illustrates our ability to boost earnings per share faster than revenues while still investing in future growth. Over the past 3 years, our growth in volume accelerated and reached 34%. That outstanding growth was driven by our successful launches and by Dupixent, which keeps generating significant growth in volumes 8 years after its launch. Our ability to gain market shares while improving profit margins illustrates the strength of our innovation and our outstanding commercial performance. Our free cash flow returned to sound levels in 2025 to EUR 8.1 billion, 18.5% of sales. Our objective is to have free cash flow steady at least 20% of revenue in the medium term. Such strong cash generation testifies to the quality of our performance and our effective management of the working capital. One key item here was stock adjustments. We were able to bring this down by 30 days last year. This disciplined approach provides significant financial flexibility to implement our capital allocation strategy. Our capital structure end 2025 was sound. Net debt standing at EUR 11 billion. We kept a conservative debt to profit ratio around 0.9x and this cautious level of leverage provides flexibility for future growth opportunities even with the AA rating, we redeployed successfully the EUR 10.4 billion from the disposal of Opella in such acquisitions as Blueprint, Vicebio, Dren Bio and Vigil. In 2025, we implemented our capital allocation strategy according to 3 priorities: organic capital expenditure, acquisition and shareholder compensation. Let me go through this in detail. We significantly increased CapEx in R&D, in commercial efforts and in our industrial capacity and in the digital transformation. That CapEx will continue boosting present growth and future growth. As I said, we redeployed the proceeds of the disposal of Opella in strategic acquisitions you have on the screen. These acquisitions strengthened our presence in immunology, rare diseases, vaccines and neurology. Sanofi also compensated its shareholders in 2025 to the tune of the historic number of EUR 10 billion, and this is almost 50-50 between dividend and share buyback of EUR 5 billion for share buyback should be seen in the context of the partial disposal of Opella. We also proposed an increase in dividend for the 31st year running to EUR 4.12 per share, up 5.1% compared to last year. In 2026, we shall continue our capital allocation policy, in particular, with the new share buyback program worth EUR 1 billion, which we finalized last night. This approach shows our commitment to create value on a sustainable basis and to compensate our shareholders while investing in long-term growth opportunities. For 2026, we expect revenue to increase by about 7% to 9% and EPS slightly more than that. We expect a negative ForEx effect on revenue, about 3% on earnings per share on the basis of existing exchange rates. In conclusion, let me share with you our ambitions for the -- by 2030, around 3 pillars. Dupixent should generate about EUR 22 billion in sales, driven by existing indications, but also the launch of new indications, then our pharmaceutical launches, which should generate about EUR 10 billion by 2030, reflecting the wealth and diversity of our innovation pipeline. Finally, our vaccine activity should generate about EUR 10 billion in revenue with the rich diversified portfolio and differentiated innovations that, of course, is based on our trust to our ability to generate sustainable and profitable growth in the long term. Thank you for your attention.

[Interpreted] Thank you very much, François-Xavier, for this presentation. The floor is now to our statutory auditors. Loic Wallaert, Forvis Mazars will present to us the summary of their reports on behalf of the college. I propose to watch a short video summarizing some key figures about our activity in France. [Presentation]

[Interpreted] Thank you, Mr. Chairman. Ladies and gentlemen, good afternoon. I would like to present on behalf of the statutory auditors, a summary of the reports prepared for your attention. For the '25 fiscal year, we've issued 6 reports covering the annual accounts, the consolidated accounts, the related party agreements, information about sustainability and finally, 2 reports on transactions related to share capital. In our first report, we issue an unqualified opinion on the annual account for the '25 financial year. Furthermore, in accordance with regulations, we have set out in our opinion reports the key audit matters for the annual and consolidated accounts of Sanofi. Regarding the annual accounts, this relates to the valuation of equity investments. We also issue an unqualified opinion on the '25 consolidated accounts of the Sanofi Group. The key audit matters are 4 in number. There are 4 major points. First, the recoverable amount of other intangible assets. The second, relates to the valuation of rebate provisions within Sanofi's commercial activities in the U.S. Third point, provision for product risk and other disputes and contingent liabilities. Finally, the last one concerns uncertain tax positions. Our third report concerns related party agreements. In that capacity, we have been notified of no new agreement needing to be submitted to your approval in this meeting. Our fourth report relates to sustainability information pursuant to the CSRD directive. In that respect, our report confirms that we have not identified any material errors, omissions or inconsistencies on 3 subjects: the compliance of the double materiality analysis, the compliance of the published information with sustainability standards called ESRS and compliance with the taxonomy disclosure requirements. Finally, in respect of the extraordinary part of your general meeting, we've issued reports on resolutions likely to affect your share capital. These transactions fall within the conditions provided for by the French Commercial Code, and our reports contain no particular remarks or observation to bring to your attention, Mr. Chairman, ladies and gentlemen, I would like to thank you for your attention.

[Interpreted] Thank you very much, Mr. Wallaert. I would now like to give the floor to Clotilde Delbos, Chairwoman of the Compensation Committee, who is going to present that compensation policy.

[Interpreted] Mr. Chairman, ladies and gentlemen, dear shareholders, good afternoon. I would like to report on the activity of the Compensation Committee. I now am honored to chair, in particular on the aspects related to the compensation of corporate officers detailed in the corporate governance chapter of the universal registration document and reflected in proposed resolutions 9 to 11. I'm going to start with Resolution 11 and 12. It is proposed in Resolution 11 to increase the maximum annual overall compensation envelope to EUR 3.2 million starting from the '26 financial year. The reasons for this increase are as follows: after analyzing the compensation paid to directors of competing pharmaceutical companies, apparently, Sanofi is significantly out of steps. We, therefore, wish to align director compensation with that of European and British competitor companies to enable better retention and attractiveness of directors with the essential expertise required, notably for overseeing Sanofi's R&D portfolio and growth operations. Finally, it was necessary to take into account the increase in the intensity of the Board's and committees' activity given the growing complexity of the geopolitical and strategic environment. Subject to approval of this resolution, the fixed portion of directors' compensation would be raised to EUR 37,500 and attendance fees per Board or committee meeting would increase by EUR 1,000 or EUR 500, respectively. Regarding the compensation policy of the Chairman of the Board, Resolution 9, it is proposed to make no changes to this policy. The Chairman's compensation has, therefore, remained unchanged since its appointment in '23. Regarding Paul Hudson's compensation in '25, Resolution #10. The main elements are recalled on the screen, a fixed compensation of EUR 1.6 million, a variable compensation assessed against previously defined objectives, EUR 2,616,000. I will tell you more about that and the award of 90,000 performance shares vesting subject to multiyear presence and performance conditions. For the variable part of the compensation, financial objectives representing 60% of the criteria regard sales growth, EPS and free cash flow. Achievement rates range between 104% and 136%, in line with the company's good commercial performance. Individual objectives representing 40% show achievement rates between 86% and 101%, reflecting mixed R&D results. The overall rate stands at 109%, giving a variable compensation of 2,616,000. Following shareholder votes at the '25 AGM, which showed certain questions about the CEO's compensation policy, Sanofi's governance and in particular, the Chairman, met with shareholders representing nearly 30% of its institutional capital. Greater transparency on benchmark elements and CSR criteria have been added to the '26 policy to respond to your expectations. Resolutions 14 and 15 regard Paul Hudson's compensation policy between January 1 and 17 February and Olivier Charmeil, Interim CEO between February and April. Those remunerations are in line with the '25 policy. Paul Hudson will receive a pro rata temporary compensation of EUR 1.6 million and the variable compensation subject to predefined performance criteria. Those elements will have to be voted by the assembly in '27. He has not been awarded any equity compensation. His departure conditions are in line with the company's policy and have been made public. As for Olivier Charmeil, he retains his compensation under his employment contract. He will get a fixed and variable supplement to align his compensation with the CEO's compensation policy for the period during which he holds the position of interim CEO. He does not benefit from any other additional compensation elements. Resolution 16, compensation policy for the future CEO, Belén Garijo, as of the start date. This policy will apply for the duration of our 4-year mandate and was amended compared to the previous policy to be more focused on medium-term value creation. The main changes are the following: no sign-on bonus, no entitlement to a supplementary pension plan, equity compensation split in 2 tranches to incentivize enhanced performance and value creation. I will detail the structure of this share-based compensation in a minute. An impatriation bonus of 15% of target annual compensation subject to a performance condition. Severance payment capped at 12 months of target annual compensation. The other compensation element for Belén, are unchanged in relation to the '25 compensation policy, notably regarding an annual fixed compensation of EUR 1.6 million and variable compensation elements. Regarding the equity compensation structure proposed, it will be 2 tranches, a long-term plan for the entire duration of the mandate and regular annual plans to reinforce the long-term value creation objective. The total maximum award over the 4-year mandate will be 360,000 shares, which is equivalent to the previous policy but distributed differently. The long-term tranche entirely awarded in '26 also called long-term tranche covers Belén's mandates between '26 and 2030 and includes 180,000 shares whose attribution will be subject to performance criteria. 80% of those shares will depend on the TSR assessed in 2031 and 20% of CSR criteria assessed in 2030. The attribution of those share is subject to a 4-year presence condition. Regarding the annual medium-term plans, also called medium-term tranches regard 40,000 shares per year, subject to a presence condition and performance conditions assessed over 3-year periods. The criteria are EPS, SCF, TSR, CSR and development portfolio. Resolution 16, therefore, includes the awards of the '26 portion of both tranches, i.e., 180,000 shares from the long-term tranche and 40,000 shares from the annual plan totaling 225,000 shares. I would like to thank you for your attention.

[Interpreted] Thank you very much, Clotilde. We will now move on to the questions-and-answers session. As soon as we have the final quorum, Jeanne Kehren will give it to us. Before we start the Q&A with shareholders, I'd like to inform you that the Board of Directors received 4 written questions with a group of 4 questions from the forum for responsible investments and a block of 6 questions from a group of asset managers and institutional investors. Questions to these -- answers to these questions were published on the company's website as per the law. I will now invite you to ask your questions. I'll allow myself to remind you that only shareholders are allowed to ask a question. Please stand up if you can and introduce yourselves. People will hand over microphones for your questions. And of course, like every year, so that everyone can have an opportunity to speak, I would like to ask you to remain as concise as possible and to keep your questions short. Now before we give you the floor, the quorum. We have a quorum of 851,428,895 shares or 71.2% of shares with voting rights and 71.01% of existing voting rights. Thank you very much. Well, once again, I will give you the floor. Maybe #1, please. Turning to Panel 1.

[Interpreted] Good afternoon, Mr. Chairman. Good afternoon, ladies and gentlemen. I received the consolidated accounts when I walked in, and thank you for giving them to me. It's not always to receive them. When I look at the consolidated accounts, the revenues were up by 6%. But when I look at your table, I saw plus 10%. Is it an error in the accounts or in your table? I couldn't understand. Then you talked about an increase in the 2026 forecast of about 7% to 8%. But looking at the consolidated accounts, it says that in 2026, sales will be negatively impacted. So who should you believe the consolidated accounts presented by your corporate communications or by what we saw in the table?

[Interpreted] Well, be reassured our accounts are truthful. For that, I will turn to Olivier Charmeil.

[Interpreted] Well, the accounts that we presented are truthful. Our revenue growth at -- on a like-for-like basis with comparable ForEx is 9.9%. The consolidated accounts reflect changes in currencies and therefore, the impact of the dollar, which last year declined strongly. So these comparable ForEx changes are reflected into a 6% growth. And François-Xavier said that once again, we're expecting a negative ForEx impact compared to a constant ForEx development. That's because of the dollar's depreciation.

[Interpreted] Thank you, Olivier. Now question number three, be reassured, I'll go around the room to give you an opportunity to speak. Please ask your question.

[Interpreted] Mr. Chairman. Can you hear me?

[Interpreted] Yes, go ahead.

[Interpreted] Jean-Claude Muller, I'm a former Sanofi manager.

[Interpreted] Maybe could we have a bit more volume for the gentleman. It seems that the microphone is not working well.

[Interpreted] I'm a former Sanofi manager. On several occasions in your written and oral presentations today, you talked about the lack of performance of the performance deficit in Sanofi's internal R&D. Could you explain why in the last 10 years, this performance hasn't been up to the level of some European competitors, Roche, Novartis, AstraZeneca and even Servier. Thank you, Mr. Chairman.

[Interpreted] Thank you, Olivier.

[Interpreted] Well, we went through -- in the last 15 years, major successes, especially the marketing of Dupixent. We have also gone through, especially last year, some results that were more nuanced. We are in an industry where we need to take risk and we need to be able to bring assets to the market that are differentiated for our patients. So this is a tricky balance between taking the right level of risk to be able -- to be differentiated if we are successful and taking a level of risk on the portfolio that is acceptable. Regarding the last 10 years, we brought a number of products to market. We had a number of successes. If I was to take 2 or 3 items out of that, our research compared to other firms delivered less. Here, I'm talking about the research part. We made a number of acquisitions. If you look at them over the longer term, I think that we were able to assess the opportunities from the outside as well as other firms. And also in the last few years, we carried out development operations, trying to find the right balance between upstream phases, Phases 1 and 2 where clearly, compared to the competition, we are in a situation where we have fewer Phases 1 and 2 than our competitors. And these last few years, we've been working on having access to more early research. In the last few years also, we've been working extensively on making a number of governance changes to make the best development decisions and be quite sure that we design clinical trials that are the most appropriate in order to highlight our differentiation at a given level of risk. And these last few years, we've also been working, in particular, under the impetus of Houman. We've been working on talents. Talent is, of course, very important in this industry. There is very strong competition for talents and a number of recent recruitments, both in the research and the medical part as well as regulatory, but also development mean that -- and I think I can say that given how long I've been within this company, I think that these recent recruitments put us in a better position than what we had these last 10 years. So we know very well that turning research around doesn't happen overnight. We have a number of therapeutic areas where we have strong positions, and it will be up to Belén to either consolidate them immunology, vaccine and rare diseases, which are, of course, strong assets for the company and to decide whether we have other opportunities in other therapeutic classes.

[Interpreted] Thank you for your question. I will look to the center # 2, please.

[Interpreted] Hello. I listened to the various presentations. I found it most interesting, but I would like to have clarifications on 3 things. Number one, our new CEO her program is very exciting, and I certainly hope she succeeds. But she said earlier in her presentation that in her -- the previous company, she simplified the operations or the operating models. And I was wondering whether the same should also apply at Sanofi, if she can streamline processes there? And could she give us a few examples? And then for our acting CEO, he mentioned a vaccine that will -- well, that was able to build on the R&D -- on COVID R&D. Now I remember reading in the media that the first time around, Sanofi failed to develop a COVID vaccine. Nonetheless, that research enabled Sanofi, and I believe we had a case in point. In the end, this was a blessing in disguise and indeed in turn into a financial success, but I would like to have details about that. And then the last question was about the video. There's a reference to a shortage of drugs in France. Now I'd like to know what is Sanofi doing to help address the situation for the French public to have access to medication without being affected by the shortage. These are the 3 questions I would like to have -- explanations.

[Interpreted] Well, thank you. I first give the floor to Olivier, who will take questions 2 and 3. And then maybe, Belén, if you'd like to take the question about simplifying the business model, maybe you can say a few words about what you did for Merck and the extent -- I mean, it's a bit early, but you tell us. You have been doing a format would be of interest for our shareholders. So Olivier, first.

[Interpreted] Yes, well, regarding simplifying the processes, I'm certain that Belén can certainly make a difference. We transformed. We've been transforming the company. But over the past few months, you can see that the world is changing, and we have to change as well. This is essential. The second question about vaccines and the COVID-19 vaccine, there were all sorts of factors that delayed our work on recombining vaccines and indeed on the mRNA vaccine. We made an acquisition 3 years ago, indeed. And that is -- enables us now to work on the mRNA vaccine, and we've been working on recombinant technology. So there will be -- we'll be able to develop flu and COVID-19 vaccines. And we can combine this as soon as we can establish effectiveness when you have a combination that can be the equivalent of 2 separate vaccines. So we've been spending quite a bit on vaccines of late. And if you look at the competition and in particular, Moderna, we believe that we can work for combined vaccines, and we'll be ready for this by the end of year 4...

[Interpreted] Hang on, it was -- it was more an issue about addressing the shortage of medication rather than innovating -- innovative vaccines.

[Interpreted] Access to medication or access to drugs, there's been some tension. And on the one hand, we want to be able to bring innovative products to the patients. But of course, we want to be able to fund development. Development is long-term affair. You're talking 5 to 10 years with significant capital expenditure, EUR 3 billion to EUR 4 billion per drug, and there's uncertainty of success when you enter clinical phases. The probability of success is anywhere between 5% and 10%. And over the past 12 to 18 months, especially in the United States, we highlighted the fact that the innovation model had to find a financial business model -- and in France, you may remember the Draghi report, we found that if Europe is to play an active role in pharmaceutical innovation, innovation should be financed in a sustainable way.

[Interpreted] Now, oh, sorry, maybe let -- let's give the microphone to Mrs. Garijo. Again, she's not even in charge. You will allow Belén to -- well, take a few months.

[Interpreted] Well, thank you for this question. Examples because there are certain dimensions certain different dimensions of dealing with the current complexity and simplification. The first one is the region-for-region approach in which we have invested significantly to put our -- to make the supply chains more resilient. Obviously, I am mentioning what is public already. And then the most important simplification initiatives that we have put in place are aimed to avoid duplications in the organization. When you have complexity across the different functions and the different business units, making decisions at the right level is very, very, very difficult and tortuous. So there is a cultural component and a cultural leadership and a redesigning of the operating model basically to avoid duplication and make sure that you understand who is making good decisions. I will leave it here.

[Interpreted] Yes. Thank you, Belén. Now I'm going to reveal a secret of the Board. And François normally, she's the one on the Board who translates everything into French and English. Anyway, I'll turn to the left here. There's a gentleman with #2.

[Interpreted] Yes. My name is [ Philippe Chamey. ] I'm an individual shareholder. And you said that there were issues with supplies of innovative compounds. But there's another issue, isn't there. During the financial presentation, we found that some of the gains were because we reduced inventory and just-in-time delivery. But now you have geopolitical challenges worldwide. Isn't there a risk if you have -- if you reduce inventories, there's a risk of shortages, isn't it?

[Interpreted] All right. Well, look, let me -- let Olivier address this, but we were focusing to access to drugs that are available, but innovative drugs and inventory optimizing doesn't imperil access to medication. But there are issues, of course, with the current development. There may be risk for international trade, of course.

[Interpreted] Right. Well, geopolitical tensions will prompt us to reconsider maybe our industrial footprint and our investment decisions are long-term decisions. Now the world is in a way, fragmenting. And so we have to allocate industrial investment to make sure that we invest on innovative drugs and make sure that at the end of the day, our patients have access to the right medications. So we've been investing in France, in Europe. Indeed, more than 12 months ago, we decided to allocate capital expenditure in an insulin plant in Germany. So we've done that. And as I said during the presentation, we've been also allocating capital in China to pursue development in China for diabetes. But also a few months ago, we indicated that we would continue investing in the United States. That is our second largest market. So in a world that is dividing up as it were, we need to have indications developed in different regions, and we are allocating this very carefully. Indeed, we want to make sure that our capital expenditure strategy is relevant.

[Interpreted] All right then now I'm looking to my left, and I see -- I'll give the floor to the gentleman on the other side. But sir, first.

[Interpreted] Yes. My name is Mark, and I have been a shareholder since the last century, and I have a question about Opella and EUROAPI. You are an independent shareholder, but aren't you concerned about Opella following the same trend as EUROAPI?

[Interpreted] Well, first of all, thank you for being so loyal to Sanofi, but Olivier will show that things vary greatly from one market to another. But Olivier, you can address this.

[Interpreted] Yes. Well, there are 2 or 3 things to be said about this. The disposal in 2025 was successful. As you may know, CD&R in the United States has 50%, and we have 49.2% and the French BPI has 1.8%. Opella's numbers are good. I spoke with Opella's CEO. And in one of our recent executive committee meetings, we're able to look at the performance. Now fair enough, the market was more challenging in 2025 than yet. Opella was in a position to deliver EBITDA pretty close to its guidance. Now the second aspect is that the beginning of the year, of course, 2026, well, is in spite of a challenging market, has been pretty good so far. So we are not concerned about Opella's performance. It's been pretty good. The second issue you've raised is EUROAPI. Now EUROAPI finds itself under pressure financially. However, it is now under control. EUROAPI had to address major challenges, in particular, a plummeting revenues. And of course, they had to have a new plan, FOCUS-27 to adjust the situation in the medium term. Now we supported EUROAPI. We produced a hybrid bond worth EUR 200 million as part of our relation with EUROAPI, but this is an arm's length position. So the operational transformation is underway. It's continuing with a simpler portfolio. And in short term, at least there's no cash problem because in spite of EUROAPI's present challenges, they have enough cash to cover all the necessary restructuring, and they will be in a position to improve profitability.

[Interpreted] Well, thank you, Olivier. I move on to the right. Okay. The lady on the first row.

[Interpreted] Yes, my name is Sylvia. I'm an employee and a shareholder. I have a question about artificial intelligence. I would like to know whether the effect of artificial intelligence has been fully assessed on the environment that is are there environmental consequences?

[Interpreted] Well, it's tough to be a CEO because then you have to take all sorts of questions. Well, look, a few comments. We -- over the past few years, we've been investing in information technology and artificial intelligence. So we want to make our foundations more stable or more reliable, but we've been working on artificial intelligence and digitalizing our processes. Now if we compare our performance with the competition in terms of IT and digital technologies, the capital expenditure is above median. Now there are areas where we've been investing. So of course, artificial intelligence, but also in research and that we believe that AI will be a transforming technology when it comes to selecting and optimizing targets, but also for development, there are -- well, put it this way, artificial intelligence should step up a number of clinical studies. We can have a better selection of centers and patients. There's also industrial innovation. We've been -- well, we have a number of projects underway, the purpose of which is to integrate data to have -- to improve production and yield on factories and biopharmaceuticals. But the question is, I mean, and we all know this that the use of artificial intelligence uses up a lot of energy, of electricity. And we want our electricity to be clean and renewable. And I can assure you that we are very mindful of this. And so we use AI in a proper way, and we only resort to that in those areas where we feel that we can achieve productivity gains or address issues that we wouldn't be able to address effectively without it. Yes. Well, thank you. When you look at that issue for the pharmaceutical industry, the potential benefit to make findings faster at a lower cost for medication that can help patients, especially for rare diseases, especially in terms of CO2 emissions. This -- it's well worth it. There's no issue.

[Interpreted] I believe your next door neighbor wanted to ask this question.

[Interpreted] I'm an employee and shareholder of Sanofi. You discussed the outcomes of Paul Hudson's term and the process that led to a change in CEO. The question is, what are the reasons that led the Board of Directors to choose a fairly fast departure or maybe a hurried departure for Paul Hudson with the payment of a several million euro severance package compared to an option to the option of waiting for his term to end 2 months later.

[Interpreted] Well, here, that was very clear. That's very clear. The challenge was to allow Belén Garijo to prepare for her arrival as quickly as possible. I'll remind you I reminded you that the challenge was to determine the best leader, the best CEO, man or woman for the company for the next 5 or 6 years, for the next growth cycle. And compared to your question, sir, what we looked at, in particular, was the profile from R&D for Belén Garijo because that's probably the major challenge for the company, and there are a few pharma CEOs with backgrounds in R&D, and that was a major aspect. And then when you say that -- when you tell a leader to leave, it's never really nice to stay on. But we wanted to prepare for Belén Garijo's arrival as quickly as possible from the 1st of May onwards to help her assume the position as quickly as possible. She could meet the team. She could prepare her arrival in the best possible conditions and for us not to waste any time because a paradox is that we are very confident about the results for the next 5 to 6 years with Dupixent. So you might feel that we have a lot of time, but at the same time, preparing for the medium- and long-term future has to happen now. We shouldn't waste any time in seizing opportunities that are here for the taking. So that's the reason why we decided on a departure date, which concretely aligned with the filing of the major universal registration document and the 20-F in the U.S., which was a way to close that chapter and open a new page. And yes, well, I'm sorry, also, I'll point out that the remuneration that was provided for in his contract was due even if Paul Hudson stayed on for another 3 months. And so he had his term as a director for which he was not remunerated. That's not what triggered his severance package. His severance package was in his CEO contract that was independent, and we simply applied the policy and the rules, and he would have had exactly the same amount if he left today. That didn't change anything if that was the meaning of your question, which I didn't understand at first.

[Interpreted] Yes, yes, please, please. You'll have your opportunity. I'll look to the center, the gentleman in blue. Yes, #2, please.

[Interpreted] I'm an individual shareholder. I have a question about the share price, which is going through a rough patch, which is not aligned with the 2025 financial results, the 2026 outlook, the financial ratios or the comparison with other pharmaceutical majors. Very often, it is noted that Sanofi is dependent on Dupixent for its growth and also how weak our R&D portfolio is and so the lack of visibility on replacing Dupixent when Dupixent goes off patent. As you showed in 2030, we'll have EUR 20 billion in revenues generated by Dupixent and EUR 20 billion from the new portfolio. Have you got any more items about the revenues, especially with the loss of exclusivity of Dupixent?

[Interpreted] And the Chairman points out that we're talking billions here, not million. But first, a few points of an answer. Of course, the more successful Dupixent is, the bigger the challenge of an at least partial compensation for that success. But I mean, it's better to have as big a success as Dupixent. It's better to have revenues, to have money to invest and build Sanofi's future beyond 2030 or 2031. Secondly, I wanted to remind you of something very important, which you didn't mention. The booking of all Dupixent revenues in our accounts is a thing, but don't forget that we developed Dupixent in partnership with another company called Regeneron. And finally, we only book 50% of the profit. So if you're thinking about offsetting that in the future, we need to offset half of the profit and not 100% of revenues. That's a major thing. And thirdly, the whole challenge, as you said, is to find drugs that will take over to a certain extent. But I wanted to focus on that. The 2025 results are not just due to Dupixent. As François highlighted correctly, there are other products like ALTUVIIIO and Beyfortus, which are real success stories for Sanofi that took over from other drugs. But you're right in saying that we need to keep feeding and strengthening our pipeline to build beyond 2030, 2040 in manageable proportions with a lot of resources to be invested in the next 5 to 6 years. But we'll need to do that wisely, both in terms of in-house spending, our EUR 8.5 billion in annual spending for research and development or mergers and partnerships because we'll have cash flow available for that. That's what we'll do under Belén's leadership.

[Interpreted] Yes, I can see a lot of impatience, but you'll have your turns. The gentleman in blue -- yes, I'm sorry. Number five, a gentleman with a pink shirt and then the gentleman with the white shirt will have the floor.

[Interpreted] I'm an individual shareholder. I'm sitting back. I love your answer about Mr. Hudson's departure. We won't get back to that, but you made a EUR 3 billion worth acquisition of L'Oréal shares -- of shares sold by L'Oréal at EUR 101.5. Today, the share price is at EUR 78. So if I do a back-of-the-envelope calculation, it seems that you lost EUR 1 billion on the purchases. And if L'Oréal was to sell its remaining shares, would you buy automatically? Does Sanofi get a right of first refusal for these shares held by L'Oréal?

[Interpreted] And then on Page 99 of the annual report on the level of remuneration, you compare yourselves to the 12 biggest market caps on the French index and your pharmaceutical peers. But for individual shareholders, I'd like you to compare yourselves to other companies on the French index that are very well rated, especially Air Liquide. Air Liquide is extremely kind to its shareholders because it pays attendance fees to shareholders who attend the AGM.

[Interpreted] Is it something that you have thought about? Because when you buy into Sanofi, well, beyond the dropping share price, it seems that we are not very well treated when it comes to the welcome we get. I think that's a minimum.

[Interpreted] Well, first of all, sir, I acknowledge the fact that you feel you're not very well treated, but there's the dividend involved in the shareholders' remuneration. And as François Xavier recalled, this is the first year of consecutive growth in the dividend. So let's look at all components of shareholder remuneration. But then regarding the stock market and the share buybacks, there are stock market rules we have to abide by. We can't just be tactical here. So we bought shares from L'Oréal. And then regarding the share price, that's the -- that's what happens to all companies. You can buy at a certain price, and then it goes another way, but that's what we're going to work on these next few years. We want to bring the share price back up. But we don't have a right of first refusal on shares held by L'Oréal. L'Oréal is still a loyal and truthful long-term shareholder of Sanofi.

[Interpreted] The gentleman in White.

[Interpreted] I'm Mr. [indiscernible]. I wanted to come back to research, development and innovation. We all understood that it is the key that it's the main engine for a good business model. Here, I remind that a few years ago in this room, the Mr. Elias Zerhouni presented some of the consolidated account, who was the global research manager for Sanofi Aventis. And when I talked to the research team, he was a well-recognized figure with Professor Emeritus at various universities in the U.S., and he was behind the innovation for several compounds. And he brilliantly made a presentation without teleprompter. But now in the Executive Committee and the org chart, I can no longer see such a figure. So I wanted to know whether Mr. Elias was providing any service to the company as a partnership or not, so that Sanofi can continue developing. And I was intrigued that he didn't become a CEO 5 or 6 years ago. We haven't heard of him since.

[Interpreted] Well, maybe I'll turn to Olivier because I wasn't fortunate enough to know this man, but maybe a general comment. Remember that in this pharmaceutical industry, it's very difficult to have success lasting decades and decades. There are very few pharmaceutical firms who are able to ensure success and develop. So you need to remain very humble in this industry and to fundamentally build the foundation of solid R&D. And as Olivier said, we started building this foundation years ago. We're not starting from 0. Don't get this idea, but we need to complete building the foundation with new talents, new teams, new modes of governance and therapeutic areas that are sometimes new, our stronger presence in immunology, for instance. So these choices need to be consolidated with determination against a long-term backdrop, and that's going to be our challenge for the future. And I'm very confident about that and Belén's leadership. And she's coming from an R&D background, which is very important. Olivier?

[Interpreted] Maybe a couple of comments there. First of all, Elias Zerhouni played a very important role, especially with our Regeneron colleagues on the design of the clinical trials that helped make Dupixent what Dupixent is today. Secondly, in this industry, it's a very delicate chemistry between getting development products from the outside, especially in early phases 1 and 2 products that are very often developed faster by biotechs being able to integrate them and then develop them. But on the other side, we also need to be -- well, to have a balanced portfolio management, we need to be able to get products that are more derisked, where value creation is not so high, but that are able to ensure a good balance between products. And so now we have very effective teams working in our therapeutic areas, in excellence areas, vaccines, rare diseases and immunology. We're also working on something that has become stronger with arrival. We're now working with external advisory boards to make sure that when we assess projects, we assess them in the most balanced way possible to be sure that we don't fall in love with our own products. and suddenly to make sure that we have the best view of what's going on outside the company. So there's internal and external development. So it's very important to have our own projects challenged by outside resources, and this is what we are doing. Well, now let's look to my left. Madam, I can't see your sign. #8, please.

[Interpreted] I find it difficult to see you because of the reflections.

[Interpreted] Individual shareholder, congratulate Belén Garijo for becoming the first woman in Sanofi's history to be appointed CEO. My question relates to the reduction of the mandate of the CEO that went from 6 years to 4 years when you compare with your peers. Usually, you have much longer tenure that are good to create long-term value. I'd like to understand why is it that you've made that choice to shortly reduce the duration of the mandate.

[Interpreted] So madam, thank you for your question. And thank you for congratulating Mrs. Garijo. I'm also very proud to have a woman as a CEO, but there's a difference between an average duration of the mandate and the legal duration. Most [ Kakahon ] companies align the duration of the mandate on the Board of Directors. That is our first mandate of 4 years as Director and CEO. Of course, that mandate can or could be renewed. And then it can be 8 years, 12 years, depending on the case. And as for the actual mandate of CEOs in the peer in the industry, it is not that long. There is an acceleration of effective mandate renewal. I agree with you that it's important to be consistent in time. I think that beyond the case of Belén, we're going to end -- finish building the pool of internal talent so that when it is the right moment to take over in the form of strategic continuity. It's also important to have strategic continuity. So we do have that in mind, including for the case of Sanofi. I'd like to turn to my right. I don't see the number. You're #4.

[Interpreted] Thank you for your help. When is it that you're going to start the investment in Vitry? You have invested EUR 1 billion.

[Interpreted] We're really eager, we're still eager to keep investing in Vitry. Given the evolution of our pipeline, given the number of recent failures, we're in the process of measuring this revision of the pipeline can have. It means -- it doesn't mean that we will not -- it's always a question of seeing the evolution of the portfolio and the volumes, it's a trade-off, but be convinced that, that does not change our end objective to invest in. Maybe what will change is the time line given the evolution of our portfolio. More widely today, we have 35% of our industrial headcount in France and 35% of our industrial basis in France, and we are attached to that. But it's been a year that you've been giving those answers. When will that be given the evolution of our portfolio, given a number of events that have taken place, we are confirming our desire to invest in Vitry, a number of projects the arrival of new products have been delayed. So we're going to be working on the impact in 3.

[Interpreted] Still question. Yes, the blue, the gentleman with the blue shirt, please.

[Interpreted] Mr. [ Mendoza ], an individual shareholder. One question regarding all of the OPAs, some French biotechs reach Phases 1 and 2. What are you going to do with those molecules validated by the FDA or Europe? Are you going to invest in them or leave them to your competitors?

[Interpreted] Today, we are in the number of therapeutic area, immunology, notably rare disease vaccine and the way in which we appreciate does not depend on the nationality of the biotech and financial elements. In the past, we have made a number of operations with French biotechs. If they have a meaning for us to complement our portfolio, we will keep doing it. Gentlemen, yes, #5. I have a question on IA. First 2 questions about digital IA and cyber. I think the arrival of Christel will be a very good thing for your company. You have talked about IA. You have said a number of things about IA. It could be interesting to speak with L'Oréal because at the AGM, it was very well explained with practical applications. So that's my question. As NVIDIA does, there is a perception IA, Agentic AI, physical AI, different forms of -- do you have practical applications for those different types of AIs, especially for Agentic AI? First, you're right to say that Christel and also Barbara Lavernos L'Oréal are very precious directors. That's why we have interesting Board. We count on those directors. Today, the way in which we look into our value chains, a company like ours, we're trying to see where is it that AI is going to create most disruption. Where is it that is going to help us gain in productivity. I have talked about identifying targets more quickly. We are in the regulatory phase. We're in the process of using a number of agents that are going to reduce submission deadlines. In the area of quality, we're increasingly using AI to allow us, for example, to follow the batches. I remember there were millions of pages allocated to a number of batches. So you realize that today, -- of course, AI is very transformational. Another area in which we think AI is going to have an important impact is from the commercial point of view, having the right interaction, the industry model, which used to be a push model is now being more sophisticated, becoming more sophisticated given the models and the use of agents will allow us to have a better vision of contacts with HCP on sites in order to be more relevant in the way in which we make our commercial investments.

[Interpreted] Thank you, Madam. You have the floor. Number one.

[Interpreted] [indiscernible], individual shareholder. I wanted to ask you about your decision to invest EUR 20 billion by 2030. I won't ask you about the rationale, but is that commitment going to be limiting the wider options Sanofi could have, in particular with China?

[Interpreted] No, I think that I hope we have shown you how Olivier has said it, the need to review our industrial siting or sites to invest everywhere in the world. We've said it for France. You were referring to this investment in Vitry, I'll let Olivier comment. Look at insulin, for example. We're investing both in Frankfurt and in China in order to have more resilient production. So we're investing in a resilient manner. Regarding the U.S., the announcement we made of EUR 20 billion was made before a number of events that have occurred regarding MFN, the most favored nation. The reasoning that was ours is related to the fragmentation of the world. And in the U.S., until recently, more or less, give and take, we used to manufacture 25% of what was used by U.S. patients. That's why we have decided to change that. We're going to keep investing in China, given that China is our second market, having a balanced industrial presence in the different geographies, be it Europe, U.S. and China, that's important for us. So our investment strategy is meet is based on a desire to be very balanced in a more fragmented world. We want to ensure the provision of drugs to our patients.

[Interpreted] Time, it's flying, but we're going -- we have time for a few more questions. Number two, Question number 2. Thank you. So Mark, that is your second question.

[Interpreted] I'd like to congratulate Mr. Frédéric Oudéa, who was able to have -- to ask Mrs. to start working on May 1 in France. I don't know there's a formal nature, a formal character to this date. I know it's Labor Day in France. [indiscernible]. More seriously, you've talked about insulin. I think you've put -- you've invested EUR 10 million in, a Lyon company based in Lyon that is working on insulin. I think you asked the same question last year, sir, it's possible.

[Interpreted] Let me say one thing. Regarding the obesity drug, things have changed with the arrival of the products manufactured by Lilly and Novo Nordisk. So we have an option to work on type 1 patient with Asia. This option will end in June. This is when we'll be able to tell you more about it. But until now, so it's already -- we've had very rich debate. Thank you very much.

[Interpreted] Maybe we can have one last question if there are questions. One question in the middle, the gentleman with a white shirt.

[Interpreted] I would have a question regarding employment and the use of AI. What will be the impact on employees of the arrival of AI? Don't you think that you're misleading people when you say we need to invest in R&D, whereas for years, you said you wanted to do away with R&D, including.

[Interpreted] Regarding employment, once again, in the last 3 years, we've been reinforcing our investment in R&D. The October of '23 was an increase in expenditures to support innovation in Sanofi. In our future projects are still based on increased expenditure. Management is very clear. But of course, what Belén wants is to make sure that each euro invested is as productive and efficient as possible because there are different ways of spending money. We have to optimize the use of resources regarding the impact on employment. It goes without saying that AI in a way is going to make a number of tasks different if they can be automated. We talked about agents that is going to allow for important gains in productivity. First of all, it allows each of us to be augmented as we say. With AI, we can solve problems we couldn't solve before. It's going to create a number of jobs that did not exist before. AI allows us to put together data and to draw a number of things with it. with the emergence of a number of functions that did not exist. So there are productivity gains for some functions with a low added value that will be impacted by AI and a number of functions, new functions that will appear. And in the last few months, we've started thinking about the new jobs that are going to appear. Of course, we need to be able to accompany those technological innovation. All right. Well, thank you so very much. This was a very fruitful exchange. And now the time has come for the resolutions. And so I'm not going to read out all 21 resolutions -- of course, if there are any questions about the resolutions, we can answer questions before we vote on them. But otherwise, I'll give the floor to Jeanne, who will tell you about the vote on resolutions.

[Interpreted] All right. We have more than 851,428,095, which is 71.01% of voting rights. The use of the box -- you will have a presentation on the screen. This is something about using the box. You cannot share it. You have to press the button to say yes, no or don't.

[Interpreted] All right then. First resolution, approval of the individual company financial statements for the year ended 31 December 2025. Please vote now. Voting is completed, and we get 99.95% of votes in favor. Number two, approval of the consolidated financial statements for the year 2025. And the resolution gets 99.95% of votes in favor. Number three, appropriation of profits for the year ended 31 December 2025 and declaration of dividend. Please vote now. Resolution is adopted 99.95% of the votes in favor.

[Interpreted] Then the next resolution #4 is reappointment of Christophe as Director.

[Interpreted] All right then we get 87.5% of votes in favor. Congratulations, Christophe. Resolution #5, reappointment of Jean-Paul as a director. Please vote now. And now we get 99.41% of the votes in favor. Congratulations, Jean-Paul. And #6, appointment of as Director. Please vote now. 98% of the votes in favor. Congratulations to Belén. Number7, appointment of Christel Heydemann as a director. Please vote now. And we get 99.99% of the votes in favor. Congratulations, Christel. Number 8, approval of the report on the compensation of corporate officers issued in accordance with Article L 22-10-9 of the French Commercial Code. Please vote now. And the resolution gets 93.02% of the votes in favor. Number 9, approval of the components of the compensation paid or awarded in respect of the year ended 31 December 2025 to Frédéric Oudéa, Chairman of the Board. Please vote now. And the resolution is carried with 98.4% of the votes in favor. And now 10, approval of the components of the compensation paid or awarded in respect of the year ended 31 December 2021 to Paul Hudson, Chief Executive Officer. Please vote now. [Voting]

[Interpreted] And voting is concluded. We get 90.16% in favor. Now 1, setting of the amount of directors' compensation. Please vote now. Indeed, we get 96.08% in favor. Number 12, approval of the compensation policy for directors. Please vote now. The resolution got 96.39% of votes in favor. Number 13, approval of the compensation policy for the Chairman of the Board of Directors. Please vote now. And indeed, we get 99.02% of votes in favor. You get #14, approval of the compensation policy for Paul Hudson, Chief Executive Officer until end of day on February 17, 2026. Please vote now. [Voting]

[Interpreted] We got 93.07% of votes in favor. We get to #15, approval of the compensation policy for Olivier Charmeil, Interim Chief Executive Officer. Please vote now. Resolution got 96.41% of votes in favor. You get to #16, approval of the compensation policy to Belén Garijo, future Chief Executive Officer. Please vote now. And the resolution got 92.38% of votes in favor. 17, authorization to the Board of Directors to carry out transactions in the company's shares usable outside the period of a public tender offer. Please vote now. [Voting]

[Interpreted] And we get 99.48% of votes in favor. We move on to resolution #18. This is amendment to the company's Articles of Association. Please vote now. [Voting]

[Interpreted] And the resolution got 97.4% of votes in favor. We get to 19. Delegation to the Board of Directors of competence to decide on the issuance of shares or securities giving access to the company's share capital reserved for members of savings plans with waiver of preemptive rights in their favor. Please vote now. [Voting]

[Interpreted] And the resolution gets 98.64% of votes in favor. We get to 20, and that is the delegation to the Board of Directors of competence to decide on the issuance of shares or securities giving access to the company's share capital to categories of beneficiaries consisting of employees and corporate officers of foreign subsidiaries with waiver of preemptive rights in their favor. Please vote now. [Voting]

[Interpreted] And we get the resolution. Adopted with 99.98% of votes in favor. And then we get to the last resolution, powers to carry out formalities. Please vote now. [Voting]

[Interpreted] And we get 99.98% of votes in favor. Thank you. Well, ladies and gentlemen, we -- all the resolutions were adopted and our agenda is exhausted. Thank you for your trust. Please remember to return your headsets and voting boxes. Next AGM will be 28 April 2027. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]