2025 Universal Registration Document

10.4 Sensitivity to changes in interest rates

An increase of 100 basis points in interest rates would have had a direct positive impact of €87.8 million on the Group’s net finance costs at 31 December 2025, compared with a direct positive impact of €39.7 million at 31 December 2024 and a direct positive impact of €34.7 million at 31 December 2023. This calculation allows for cash, cash equivalents and derivatives, and assumes that total net debt/cash remains stable and that fixed-rate debt at maturity ais replaced are not impacted.

The impact of a 100 basis point rise in interest rates on the fair value of the Group’s fixed-rate financial assets and liabilities, after allowing for any interest rate derivatives, can be estimated at -€90.3 million at 31 December 2025 compared with -€64.9 million at 31 December 2024 and -€60.2 million at 31 December 2023.

10.5 Counterparty risk

The Group has financial relations with international banks rated investment grade by specialised agencies. The Group thus considers that its exposure to counterparty risk is low.

Furthermore, the financial instruments used to manage exchange rate and interest rate risk are issued by leading international banking counterparties.

Accordingly, the Group considers its exposure to counterparty risk to be low.

10.6 Liquidity risk

The Group’s liquidity risk can be assessed on the basis of its outstanding short-term debt under its short-term marketable instruments programme. Should these bank facilities not be renewed, the Group would have confirmed undrawn credit lines of €11,000 million at 31 December 2025. These lines were not subject to any covenants.

10.7 Shareholding risk

No cash has been invested in shares.

Available cash is invested with top-ranking financial institutions in the form of non-speculative instruments which can be drawn in very short periods. At 31 December 2025, marketable securities consist exclusively of unit trusts (note 9.2.).

At 31 December 2025, the Group held:

• 88,670,657 Sanofi shares for an amount of €7,334.8 million (note 9.3.). The initial share price for Sanofi shares was €34.12;
• 23,789,764 Galderma shares for an amount of €4,145.5 million (note 9.3). The initial share price for Galderma shares was €75.6.

The shares are valued based on their fair value, and unrealised losses and gains are accounted for through equity in the Other comprehensive income item.

At 31 December 2024, the Group held:

• 118,227,307 Sanofi shares for an amount of €11,082.6 million (note 9.3.);
• 23,789,764 Galderma shares for an amount of €2,550.0 million (note 9.3.).

At 31 December 2023, the Group held 118,227,307 Sanofi shares for an amount of €10,612.1 million (note 9.3.).

10.8 Fair value hierarchy

IFRS 7 requires financial assets and liabilities recognised at fair value in the balance sheet to be classified according to three levels:

• level 1: quoted prices on an active market;
• level 2: valuation techniques using observable inputs;
• level 3: valuation techniques using unobservable inputs, such as investment funds valuation reports.

The table below provides an analysis of financial instruments recorded at fair value on the balance sheet by level of the fair value hierarchy.