2007 earnings ahead of guidance Sharp rise in proposed dividend
Paris, February 12, 2008
Adjusted net income excluding selected items1
Q4 2007:
€1,429 million (up 4.5%), i.e. €1.07 per share (up 5.9%, or up 18.3% in U.S. dollars(2))
FY 2007:
€6,961 million (up 5.9%), i.e. €5.17 per share (up 5.9%, or up 15.7% in U.S. dollars(2))
In order to give a representation of our underlying economic performance, we present and explain an adjusted1 income statement. We also report adjusted net income and adjusted EPS (excluding selected items) in U.S. dollars2 in order to facilitate comparisons with the majority of major pharmaceutical groups. The 2007 consolidated income statement is provided in the Appendices. Full-year consolidated net income for 2007 was €5,263 million, against €4,006 million for 2006.
Fourth quarter
Net sales down 2.2% on a comparable basis (or 6.0% on a reported basis) at €6,911 million
Growth of 5.7% in pharmaceuticals net sales after excluding the impact of generics of Ambien® IR in the United States and Eloxatin® in Europe3
Growth in earnings despite the negative effects of the euro/dollar exchange rate and of earlier shipments of influenza vaccines than in 2006
2007 full year: €5.28 adjusted EPS with selected items; €5.17 excluding selected items
Net sales up 2.8% on a comparable basis (down 1.1% on a reported basis) at €28,052 million
Growth of 6.4% in Pharmaceuticals net sales after excluding the impact of generics of Ambien® IR in the United States and Eloxatin® in Europe3; 14.5% growth in Vaccines net sales
Lantus®: First insulin brand to exceed €2 billion of sales
Marked decline in selling and general expenses, with the ratio of selling and general expenses down 1.4 points at 26.9%
Earnings ahead of full-year guidance4:
Business development highlights: signature of alliance agreements with Regeneron, Acambis, Crucell and Oxford Biomedica, and buyout of rights to several of our products in Japan
Share repurchase program and dividend
29.4 million shares repurchased in 2007 for a total of €1.8 billion
A dividend increase of 18.3% to €2.07 per share proposed to the Shareholders’ Annual General Meeting
2008 guidance
Barring major adverse events, sanofi-aventis expects 2008 adjusted EPS excluding selected items5 to grow around 7%, calculated at constant 2007 euro/dollar parity (1,371). Sensitivity to the euro/dollar exchange rate is estimated at 0.5% of growth for a 1-cent movement in the exchange rate. (see page 11)
1 See Appendix 1 for a definition of financial indicators, and Appendix 6 for a description of selected items
2 U.S. dollar figures obtained by translating euro-denominated figures at the average exchange rate for the period: 1.449 for Q4 2007 (1.290 for Q4 2006) and 1.371 for FY 2007 (1.256 for FY 2006)
3 Excluding net sales of Ambien® IR in the United States (from April) and net sales of Eloxatin® in Europe
4 Adjusted EPS excluding selected items up 13% at a constant 2006 euro/dollar rate (1.25) against guidance of 10% growth
5 Adjusted EPS excluding selected items for 2007 was €5.17
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