Sanofi (SNY)

Free Cash Flow to The Firm (FCFF)

Sanofi, FCFF calculation

USD $ in millions, translated from EUR €

12 months ended	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Net income attributable to equity holders of Sanofi	6,549	7,386	7,255	7,546	5,361
Net income attributable to non-controlling interests	223	313	337	611	614
Net noncash charges	4,440	5,060	5,726	5,262	5,891
Changes in working capital	(438)	(668)	(368)	(1,214)	(1)
Net cash provided by (used in) operating activities	10,774	12,090	12,950	12,204	11,864
Interest paid, net of tax	531	537	513	306	375
Acquisitions of property, plant and equipment and intangible assets	(2,126)	(2,312)	(2,087)	(2,558)	(2,236)
Free cash flow to the firm (FCFF)	9,180	10,315	11,375	9,952	10,003

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Sanofi's suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Sanofi's FCFF declined from 2010 to 2011 and from 2011 to 2012.

Sanofi, current EV/FCFF

	Sanofi	Health Care
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	157,083
Free cash flow to the firm (FCFF)	9,180
Ratio
EV/FCFF	17.11	15.50

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Sanofi, EV/FCFF calculation

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions, translated from EUR €)
Enterprise value (EV)¹	142,574	113,994	94,982	106,606	71,144
Free cash flow to the firm (FCFF)²	9,180	10,315	11,375	9,952	10,003
EV/FCFF, Comparison to Industry
Sanofi³	15.53	11.05	8.35	10.71	7.11
Industry, Health Care	14.24	11.19	10.93	11.80	10.04

2012 Calculations

³ EV/FCFF = EV ÷ FCFF
= 142,574 ÷ 9,180 = 15.53

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Sanofi's EV/FCFF ratio increased from 2010 to 2011 and from 2011 to 2012.