General Policy Liquidity risk, foreign exchange risk and interest rate risk, as well as related counterparty risks, are managed centrally by our dedicated treasury team within the Group Finance Department. Where it is not possible to manage those risks centrally – in particular due to regulatory restrictions (such as foreign exchange controls) or local tax restrictions – credit facilities and/or currency lines, guaranteed whenever necessary by the parent company, are contracted by our subsidiaries locally with banks, under the supervision of the central treasury team. Our financing and investment strategies, and our interest rate and currency hedging strategies, are reviewed monthly by the Group Finance Department. Our policy prohibits the use of derivatives for speculative purposes. Counterparty Risk Our financing and investing transactions, and our currency and interest rate hedges, are contracted with leading counterparties. We set limits for investment and derivative transactions with individual financial institutions, depending on the rating of each institution. Compliance with these limits, which are based on the notional amounts of the investments and the fair value of the hedging instruments, is monitored on a daily basis. The table below shows our total exposure as of December 31, 2025 by rating and in terms of our percentage exposure to the dominant counterparty. (€ million) Cash and cashequivalents(excluding mutualfunds) (a) Notionalamounts ofcurrencyhedges (b) Fair value of currency hedges Notionalamounts ofinterest ratehedges (b) Fair value of interest rate hedges Generalcorporatepurposecredit facilities AA 53 2,439 (3) 938 (11) 500 AA- 110 12,032 (16) 682 (12) 1,500 A+ 1,129 14,520 (2) 789 (27) 4,000 A 477 8,964 (2) 795 (29) 2,000 A- — — — — — — Unallocated 68 — — — — — Total 1,837 37,954 (23) 3,204 (79) 8,000 %/rating of dominant counterparty 21.5% / A+ 11.3% /AA- 29.3% /AA 6% /A+ (a)Cash equivalents include mutual fund investments of €5,820 million. (b)The notional amounts are translated into euros at the relevant closing exchange rate as of December 31, 2025. As of December 31, 2025, Sanofi held investments in euro and US dollar denominated money-market mutual funds. Those instruments have low volatility, low sensitivity to interest rate risk, and a very low probability of loss of principal. The depositary banks of the mutual funds, and of Sanofi itself, have a long-term rating of at least A. Realization of counterparty risk could impact our liquidity in certain circumstances. Foreign Exchange Risk A. Operating foreign exchange risk A substantial portion of our net sales is generated in countries where the euro, which is our reporting currency, is not the functional currency. In 2025, for example, 50.8% of our net sales were generated in the US; 21.0% in Europe; and 28.2% in the Rest of the World region (see the definition in “Item 5. Operating and Financial Review and Prospects — A. Operating results), including countries that are, or may in the future become, subject to exchange controls, of which 6.0% was generated in China and 3.2% in Japan. Although we also incur expenses in those countries, the impact of those expenses is not enough wholly to offset the impact of exchange rates on our net sales. Consequently, our operating income may be materially affected by fluctuations in exchange rates between the euro and other currencies. Sanofi operates a foreign exchange risk hedging policy to reduce the exposure of operating income to exchange rate movements. That policy involves regular assessments of Sanofi’s worldwide foreign currency exposure, based on foreign currency transactions carried out by the parent company and its subsidiaries. Those transactions mainly comprise sales, purchases, research costs, co-marketing and co-promotion expenses, and royalties. To reduce the exposure of those transactions to exchange rate movements, Sanofi contracts hedges using liquid derivative instruments, mainly forward currency purchases and sales, and also foreign exchange swaps. See also “Item 5. Operating and Financial Review and Prospects — A. Operating results — A.1.8 Impact of Exchange Rates.” The table below shows operating currency hedging instruments in place as of December 31, 2025, with the notional amount translated into euros at the relevant closing exchange rate (see Note D.20. to our consolidated financial statements included at Item 18. of this annual report, for the accounting classification of those instruments as of December 31, 2025). SANOFI FORM 20-F 2025 167 PART I ITEM 11. Quantitative and Qualitative Disclosures about Market Risk Operating foreign exchange derivatives as of December 31, 2025 (€ million) Notional amount Fair value Forward currency sales 9,202 (12) of which US dollar 4,552 7 of which Singapore dollar 1,093 1 of which Chinese yuan renminbi 897 (4) of which Saudi Arabian riyal 273 2 of which Turkish lira 224 (11) Forward currency purchases 7,686 (16) of which US dollar 4,224 (27) of which Singapore dollar 1,204 (1) of which Chinese yuan renminbi 718 3 of which Turkish lira 212 7 of which Hungarian forint 163 1 Total 16,888 (28) The above positions mainly hedge future material foreign-currency cash flows arising after the end of the reporting period in relation to transactions carried out during the year ended December 31, 2025 and recognized in the balance sheet at that date. Gains and losses on hedging instruments (forward contracts) are calculated and recognized in parallel with the recognition of gains and losses on the hedged items. Due to this hedging relationship, the commercial foreign exchange profit or loss on these items (hedging instruments and hedged transactions) will be immaterial in 2026. B. Financial foreign exchange risk The cash pooling arrangements for foreign subsidiaries outside the euro zone, and some of Sanofi’s financing activities, expose certain Sanofi entities to financial foreign exchange risk (i.e. the risk of changes in the value of borrowings and loans denominated in a currency other than the functional currency of the borrower or lender). That foreign exchange exposure is hedged using derivative instruments (foreign exchange swaps, forward contracts or cross currency swaps) that alter the currency split of Sanofi’s net debt once those instruments are taken into account. The table below shows financial currency hedging instruments in place as of December 31, 2025, with the notional amounts translated into euros at the relevant closing exchange rate (see also Note D.20. to our consolidated financial statements included at Item 18. of this annual report, for the accounting classification of these instruments as of December 31, 2025). Financial foreign exchange derivatives as of December 31, 2025 (€ million) Notional amount Fair value Expiry Cross currency seller swaps 1,481 6 of which US dollar 1,481 (a) 6 2032 Forward currency sales 12,550 (13) of which US dollar 10,323 (b) 2027 of which Pound sterling 981 (8) 2026 of which Japanese yen 294 3 2026 Forward currency purchases 7,035 12 of which US dollar 4,055 (c) 1 2026 of which Singapore dollar 1,041 (5) 2026 of which Hungarian forint 719 9 2026 Total 21,066 5 (a)Comprises two cross currency swaps (i) with a notional amount of $870 million, pay 4.16% in US dollars and receive 2.50% in euros expiring 2029 and (ii) with a notional amount of $870 million, pay 4.53% in US dollars and receive 3.00% in euros, expiring 2032, designated as a hedge of Sanofi’s net investment in the US. As of December 31, 2025, the fair value of the swaps was an asset of €6 million, with €9 million credited to Other comprehensive income and €3 million debited to financial income and expenses. (b)Includes forward sales with a notional amount of $11,275 million expiring in 2026 and 2027, designated as a hedge of Sanofi’s net investment in the US. As of December 31, 2025, the fair value of these forward contracts represented a liability of €30 million, of which €30 million debited to Other comprehensive income, with the impact on financial income and expenses being immaterial. (c)Includes forward purchases with a notional amount of $1,000 million expiring in 2026, designated as a fair value hedge of the exposure of $1,000 million of bond issues to fluctuations in the EUR/USD spot rate. As of December 31, 2025, the fair value of the contracts was an asset of €3 million, of which €1 million was credited to Other comprehensive income under the cost of hedging accounting treatment. These hedging instruments generate a net financial gain or loss arising from the interest rate differential between the hedged currency and the euro, given that the foreign exchange gain or loss on the foreign-currency borrowing and loans is offset by the change in the intrinsic value of the hedging instruments. The interest rate differential is recognized within cost of net debt (see Note D.29. to our consolidated financial statements included at Item 18. of this annual report). We may also hedge some future foreign-currency investment or divestment cash flows. 168 SANOFI FORM 20-F 2025 PART I ITEM 11. Quantitative and Qualitative Disclosures about Market Risk C. Other foreign exchange risks A significant proportion of our net assets is denominated in US dollars (see Note D.35. to the consolidated financial statements included at Item 18. of this annual report). As a result, any fluctuation in the exchange rate of the US dollar against the euro automatically impacts the amount of our equity as expressed in euros; however, the impact is partially hedged by transactions designated as hedges of Sanofi’s net investment in the US (see "B.— Financial foreign exchange risk" above, and Note D17.1. to the consolidated financial statements included at Item 18. of this annual report). In addition, we use the euro as our reporting currency. Consequently, if one or more EU Member States were to abandon the euro as a currency, the resulting economic upheavals – in particular, fluctuations in exchange rates – could have a significant impact on the terms under which we can obtain financing and on our financial results, the extent and consequences of which are not currently foreseeable. Liquidity Risk We operate a centralized treasury platform whereby all surplus cash and financing needs of our subsidiaries are invested with or funded by the parent company (where permitted by local legislation). The central treasury department manages our current and projected financing, and ensures that Sanofi is able to meet its financial commitments by maintaining sufficient cash and confirmed credit facilities for the size of our operations and the maturity of our debt (see Notes D.17.1.c. and D.17.1.g. to the consolidated financial statements included at Item 18. of this annual report). We diversify our short-term investments with leading counterparties using money-market products with instant access, or with a maturity of most often less than three months. As of December 31, 2025, cash and cash equivalents amounted to €7,657 million, and short-term investments predominantly comprised: •collective investments in euro and US dollar denominated money-market mutual funds. All such funds can be traded on a daily basis and the amount invested in each fund may not exceed 10% of each fund's net asset value ; and •amounts invested directly with banks in the form of instant access deposits, and term deposits with a maturity of no more than three months. As of December 31, 2025, we also had €8 billion of undrawn general corporate purpose confirmed credit facilities, half of which expires in December 2027 and half in March 2030. Those credit facilities are not subject to financial covenant ratios. Our policy is to diversify our sources of funding through public or private issuances of debt securities, in the US (shelf registration statement) and Europe (Euro Medium Term Note program). In addition, our A-1+/P-1/S-1+ (by Standard & Poor’s/Moody’s/Scope Ratings respectively) short-term rating gives us access to commercial paper programs in the US, and to Negotiable European Commercial Paper programs in France. The average maturity of our total debt was 3.58 years as of December 31, 2025, compared with 3.56 years as of December 31, 2024. Average drawdowns under the Negotiable European Commercial Paper program in France during 2025 were €0.1 billion (with a maximum of €0.2 billion); the average maturity of those drawdowns was three months. As of December 31, 2025, this program was not being utilized. Average drawdowns under the US Commercial Paper program during 2025 were $3.8 billion (with a maximum of $6.8 billion); the average maturity of those drawdowns was two months. As of December 31, 2025, drawdowns under the program amounted to $1.0 billion. In the event of a liquidity crisis, we could be exposed to difficulties in calling up our available cash, a scarcity of sources of funding including the above-mentioned programs, and/or a deterioration in their terms. This situation could damage our capacity to refinance our debt or to issue new debt on reasonable terms. Interest Rate Risk Sanofi issues debt in two currencies, the euro and the US dollar, and also invests its cash and cash equivalents in those currencies. Sanofi also operates cash pooling arrangements to manage the surplus cash and short-term liquidity needs of foreign subsidiaries located outside the euro zone. To optimize the cost of debt or reduce the volatility of debt and manage its exposure to financial foreign exchange risk, Sanofi uses derivative instruments (interest rate swaps, currency swaps, foreign exchange swaps and forward contracts) that alter the fixed/floating rate split and the currency split of its net debt. The projected full-year sensitivity to interest rate fluctuations of our debt, net of cash and cash equivalents for 2026 is as follows: Change in short-term interest rates Impact on pre-tax net income(€ million) Impact on pre-tax income/(expense)recognized directly in equity(€ million) +100 bp 50 27 +25 bp 12 7 -25 bp (12) (7) -100 bp (50) (27) Stock Market Risk It is our policy not to trade on the stock market for speculative purposes. SANOFI FORM 20-F 2025 169 PART I ITEM 12. Description of Securities other than Equity Securities