Corporate Profile

Name: Sanofi-Aventis
Ticker: SNY
Industry: Health Care
Jurisdiction of incorporation: France
Number of shares of common stock outstanding: 2,621,995,570 

Income Statement
The income statement presents information on the financial results of a company's business activities over a period of time. The
income statement communicates how much revenue the company generated during a period and what cost it incurred in
connection with generating that revenue.

Sanofi-Aventis, Consolidated Income Statement

USD $ in millions, translated from EUR €

  12 months ended Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Net sales 40,318  42,004  38,374  40,964  37,446 
Other revenues 2,191  2,068  1,739  1,687  1,473 

Revenues 42,509  44,072  40,113  42,650  38,919 

Cost of sales (11,567) (11,294) (10,213) (11,056) (10,013)

Gross profit 30,942  32,778  29,900  31,595  28,906 

Research and development expenses (5,840) (6,569) (6,368) (6,625) (5,847)
Selling and general expenses (10,041) (10,499) (9,978) (11,031) (10,585)
Other operating income 476  1,241  774  762  516 
Other operating expenses (366) (689) (491) (448) (153)
Amortization of intangible assets (4,683) (5,057) (4,848) (5,336) (5,276)
Impairment of intangible assets (575) (533) (2,163) (85) (1,535)
Restructuring costs (1,821) (1,548) (814) (200) (362)
Gains and losses on disposals, and litigation (183) – 106  – 707 

Operating income 7,910  9,124  6,116  8,632  6,372 

Cost of debt (511) (444) (438) (434) (470)
Interest income 81  126  184  129  107 

Cost of debt, net of cash and cash equivalents (430) (318) (255) (305) (363)
Non-operating foreign exchange gains (losses) (27) (96) (103) 127  90 
Fair value gains (losses) on other derivatives – – – 6  90 
Unwinding of discount on provisions (90) (60) (52) (55) (46)
Gains (losses) on disposals of financial assets 81  1  57  10  143 
Impairment losses on financial assets, net of reversals (8) (3) (11) (20) (50)
Other items (7) 46  40  35  32 

Net financial income (expenses) (480) (430) (323) (203) (106)

Income before tax and associates and joint ventures 7,430  8,694  5,793  8,429  6,266 
 Income tax expense (1,648) (1,955) (949) (1,003) (1,056)
Share of profit (loss) of associates and joint ventures 1,298  1,167  963  651  595 

Net income excluding the held-for-exchange Merial business 7,079  7,906  5,807  8,077  5,806 
Net income from the held-for-exchange Merial business 512  251  167  221  –

Net income 7,592  8,157  5,974  8,297  5,806 

Net income attributable to non-controlling interests (337) (611) (614) (612) (519)

Net income attributable to equity holders of sanofi-aventis 7,255  7,546  5,361  7,685  5,287 
Source: Sanofi-Aventis, Annual Reports

Current Valuation Ratios

Sanofi-Aventis, current price multiples
  Sanofi-Aventis Health Car

Selected Financial Data

Current share price (P) $ 36.05

No. shares of common stock outstanding 2,621,995,570

Growth rate (g) 1.64%

Earnings per share (EPS) $ 2.77

Next year EPS $ 2.80

Operating profit per share $ 3.02

Sales per share $ 16.21

Book value per share (BVPS) $ 26.87

Ratios (Price Multiples)

Price to earnings (P/E) 13.03

Price to next year earnings 12.90

Price to operating profit (P/OP) 11.95

Price to sales (P/S) 2.22

Price to book value (P/BV) 1.34

  12 months ended Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Net income attributable to equity holders of sanofi-aventis 7,255  7,546  5,361  7,685  5,287 

Net income from the held-for-exchange Merial business (512) (251) (167) (221) –

Dividends received from Merial 660  257  161  212  –

Non-controlling interests, excluding BMS 23  30  26  23  24 

Share of undistributed earnings of associates and joint ventures 72  49  32  203  127 

Depreciation, amortization and impairment of property, plant and equipment and

6,806  7,182  8,331  6,811  8,068 
intangible assets

Gains and losses on disposals of non-current assets, net of tax (147) (36) (63) (93) (736)

Net change in deferred taxes (2,006) (1,676) (2,050) (2,155) (3,251)

Net change in provisions 628  231  78  (361) 375 

Cost of employee benefits (stock options and other share-based payments) 174  163  174  196  197 

Impact of the workdown of acquired inventories remeasured at fair value 40  39  – – 28 

Unrealized (gains) losses recognized in income 328  (116) (18) (739) (74)

Operating cash flow before changes in working capital 13,317  13,418  11,865  11,561  10,044 

(Increase) decrease in inventories (502) (701) (117) (130) (491)

(Increase) decrease in accounts receivable (109) (615) (430) (88) (318)

Increase (decrease) in accounts payable 37  (482) (39) (228) (102)

Net change in other current assets, current financial assets and other current
206  583  585  (739) (417)
liabilities

Changes in working capital (368) (1,214) (1) (1,184) (1,328)

Net cash provided by (used in) operating activities 12,950  12,204  11,864  10,377  8,716 

Acquisitions of property, plant and equipment and intangible assets (2,087) (2,558) (2,236) (2,351) (1,919)

Acquisitions of investments in consolidated undertakings, net of cash acquired (2,201) (7,973) (920) (312) (672)

Acquisitions of available-for-sale financial assets (98) (7) (8) (323) (5)

Proceeds from disposals of property, plant and equipment, intangible assets and
174  122  171  480  1,549 
other non-current assets, net of tax

Net change in loans and other non-current financial assets (276) (27) (6) – 4 
 Net cash provided by (used in) investing activities (4,489) (10,444) (2,998) (2,506) (1,043)

Issuance of sanofi-aventis shares 24  204  71  396  405 

Dividends paid to shareholders of sanofi-aventis (4,155) (4,116) (3,761) (3,452) (2,695)

Dividends paid to non-controlling shareholders, excluding BMS (9) (9) (8) (13) (11)

Transactions with non-controlling interests, other than dividends (129) – – – –

Additional long-term debt contracted 670  6,732  1,065  2,393  1,140 

Repayments of long-term debt (2,629) (2,851) (1,744) (3,015) (1,783)

Net change in short-term debt 411  (1,125) 775  (743) (4,849)

Acquisition of treasury shares (426) – (1,708) (2,637) –

Disposals of treasury shares, net of tax 76  37  8  34  66 

Net cash provided by (used in) financing activities (6,166) (1,128) (5,302) (7,039) (7,726)

Impact of exchange rates on cash and cash equivalents 58  36  (63) (18) (74)

Net change in cash and cash equivalents 2,353  668  3,501  815  (127)

Cash and cash equivalents, beginning of period 6,226  6,057  2,382  1,684  1,648 

Cash and cash equivalents, end of period 8,579  6,725  5,883  2,499  1,522 

Statement of Cash Flows

The cash flow statement provides information about a company's cash receipts and cash payments during an accounting period, showing how
these cash flaws link the ending cash balance to the beginning balance shown on the company's statement of financial position.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing
activities, and cash flows provided by (used in) financing activities.

Sanofi-Aventis, Consolidated Statement of Cash Flows

USD $ in millions, translated from EUR €

Source: Sanofi-Aventis, Annual ReportsEnterprise Value to EBITDA (EV/EBITDA)

 Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

 EV to EBITDA Ratio, Current

 EV to EBITDA Ratio, Historical

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

 Sanofi-Aventis, EBITDA calculation

  12 months ended Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006

Net income attributable to equity holders of sanofi-aventis 7,255  7,546  5,361  7,685  5,287 

Add: Net income attributable to non-controlling interests 337  611  614  612  519 

Add: Cost of debt 511  444  438  434  470 

Add: Income tax expense (benefit) 1,648  1,955  949  1,003  1,056 

Earnings before interest and tax (EBIT) 9,751  10,556  7,362  9,734  7,331 

Add: Depreciation, amortization and impairment of property, plant and

6,806  7,182  8,331  6,811  8,068 
equipment and intangible assets

Earnings before interest, tax, depreciation and amortization (EBITDA) 16,557  17,738  15,693  16,545  15,399 

USD $ in millions, translated from EUR €

Enterprise Value to FCFF (EV/FCFF)

 Free Cash Flow to The Firm (FCFF)

 EV to FCFF Ratio, Current

 EV to FCFF Ratio, Historical

Free Cash Flow to The Firm (FCFF)

Sanofi-Aventis, FCFF calculation

USD $ in millions, translated from EUR €

  12 months ended Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006

Net income attributable to equity holders of sanofi-aventis 7,255  7,546  5,361  7,685  5,287 

Add: Net income attributable to non-controlling interests 337  611  614  612  519 

Add: Net noncash charges 5,726  5,262  5,891  3,264  4,238 

Less: Changes in working capital (368) (1,214) (1) (1,184) (1,328)

Net cash provided by (used in) operating activities 12,950  12,204  11,864  10,377  8,716 

Add: Interest paid, net of tax 513  306  375  407  477 

Less: Acquisitions of property, plant and equipment and intangible assets (2,087) (2,558) (2,236) (2,351) (1,919)

Free cash flow to the firm (FCFF) 11,375  9,952  10,003  8,433  7,274