sanofi-aventis Pakistan limited CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (UN-AUDITED)

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1 If undelivered please return to: sanofiaventis Pakistan limited Plot No. 23, Sector 22, Korangi Industrial Area, Karachi74900 POSTAL ADDRESS P.O. Box No. 4962, Karachi74000

2 sanofiaventis Pakistan limited CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, (UNAUDITED)

3 Contents 2 Company Information 3 Directors Report to the Shareholders 5 Condensed Interim Statement of Financial Position 6 Condensed Interim Statement of Profit or Loss 6 Condensed Interim Statement of Comprehensive Income 7 Condensed Interim Statement of Cash Flows 8 Condensed Interim Statement of Changes in Equity 9 Notes to the Condensed Interim Financial Statements

4 Company Information Board of Directors Yasser Pirmuhammad Syed Hyder Ali Arshad Ali Gohar Imtiaz Ahmed Husain Laliwala David Khougazian Ana Arcos Thomas Rouchout Company Secretary Muhammad Yousuf Chief Financial Officer URL Auditors E Y Ford Rhodes, Chartered Accountants Legal Advisors Khalid Anwer & Co. Saadat Yar Khan & Co. Ghani Law Associates Registrars & Share Transfer Office FAMCO Associates (Pvt.) Ltd. 8F, Next to Hotel Faran, Nursery, Block6, P.E.C.H.S. SharaheFaisal, Karachi Tel. No: Fax No: URL: Bankers Citibank, N.A. Deutsche Bank AG MCB Bank Limited Allied Bank Limited Habib Bank Limited National Bank of Pakistan Bank of TokyoMitsubishi UFJ, Limited Standard Chartered Bank (Pakistan) Limited Industrial & Commercial Bank of China Limited Registered Office Plot 23, Sector 22, Korangi Industrial Area, Karachi Postal Address P.O. Box No. 4962, Karachi Contact Tel. No: contact.pk@sanofi.com 2

5 Directors Report to the Shareholders The Directors are pleased to present the unaudited interim condensed financial statements of your Company, for the nine months ended. These financial statements have been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 Interim Financial Reporting and the provisions of and the directives issued under the Companies Act,. In case where requirements differ, the provisions of or directives issued under the Companies Act, have been followed. The Company's net sales for the nine months ended amounted to Rs.10,099 (: Rs.9,768) million registering a growth of 3.4% over comparative prior period. The net sales of Company's pharmaceutical business for the nine months reached to Rs.9,860 (: Rs.8,982) million recording a steady growth of 9.8% over the comparative prior period. The growth was mainly driven by Flagyl, Lantus and NoSpa, which grew by 26.0%, 15.5% and 15.2% respectively. This strong growth in the pharmaceutical business was partially offset by the decline in vaccines business, with negligible public tender business during the year; declining by 97% over comparative prior period. However vaccines private business showed a strong growth during the nine months ended September 30, reaching to Rs.222 million (: Rs.153 million). The gross margin for the period stands at 32.3% of net sales, compared to 37.3% in comparative prior period, resulting in a decline of 5% mainly due to continuous devaluation of Pakistan Rupee of approximately 12% since the start of the year, resulting in significant foreign exchange loss during the period. As a percentage of net sales, distribution and marketing expenses remained at the same level over the comparative prior period. The administration expenses reached to 3.5% compared to 3.0% of net sales for comparative prior period, mainly due to increase in ITS costs, repairs and maintenance and staff costs. Profit after tax for the nine months ended amounted to Rs.588 million (: 947 million) because of the reasons explained above. The economy of the country has been under pressure with widening current account deficit and depletion in foreign currency reserves. The impact of Pakistan Rupee depreciation remains a major cause of concern for the pharmaceutical industry in general as majority of active pharmaceutical ingredients and finished goods are imported. The management is confident that the growth of the Company in rest of the year will be aligned with the market growth of MNCs, barring any unforeseen event. The Board of Directors would like to acknowledge the efforts of the employees in the operations of the Company. Karachi: October 25,.

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7 ASSETS Condensed Interim Statement of Financial Position As at NONCURRENT ASSETS Fixed assets Property, plant and equipment Intangible assets Longterm loans Longterm deposits Deferred Taxation CURRENT ASSETS Stores and spares Stockintrade Trade debts Loans and advances Trade deposits and shortterm prepayments Other receivables Taxation net Cash and bank balances 50,657 2,564, , , ,634 27,343 1,532,704 58,119 5,472,875 51,173 2,406, ,932 59, ,227 23,175 1,458,883 15,844 4,897,508 TOTAL ASSETS 7,122,685 6,625,062 EQUITY AND LIABILITIES Note SHARE CAPITAL AND RESERVES Share capital Authorized 10,000,000 (: 10,000,000) Ordinary shares of Rs. 10 each 100, ,000 Issued, subscribed and paidup 96,448 96, ,592,189 2,872 1,595,061 5,882 13,643 35,224 (Audited) December 31,...Rupees in ` ,701,285 1,041 1,702,326 6,479 13,643 5,106 1,649,810 1,727,554 Reserves Capital reserves Revenue reserves 280,435 3,944,220 4,224,655 4,321, ,044 3,790,126 4,052,170 4,148,618 CURRENT LIABILITIES Trade and other payables Accrued markup Shortterm borrowings Unclaimed Dividend 8 2,685,780 1, ,503 8,866 2,801,582 2,198,390 1, ,296 5,323 2,476,444 CONTINGENCIES AND COMMITMENTS 9 TOTAL EQUITY AND LIABILITIES 7,122,685 6,625,062 The annexed notes 1 to 16 form an integral part of these condensed interim financial statements. Yasser Pirmuhammad Chief Financial Officer 5

8 Condensed Interim Statement of Profit or Loss For the nine months ended NET SALES Cost of sales GROSS PROFIT Distribution and marketing expenses Administrative expenses Other expenses Other income OPERATING PROFIT Finance costs PROFIT BEFORE TAXATION Taxation Current Prior Deferred NET PROFIT / (LOSS) FOR THE PERIOD BASIC AND DILUTED EARNINGS / (LOSS) Per Share (Rs. Per Share) Nine Months Ended Three Months Ended Sep. 30, Sep. 30, Sep. 30, Sep. 30,...Rupees in ` ,099,022 3,261,704 (1,675,505) (353,860) (277,446) 20,011 (2,286,800) 974,904 (12,164) 962,740 (418,709) 13,959 30,461 (374,289) 588,451 9,767,953 3,644,020 (1,613,300) (294,998) (348,888) 35,858 (2,221,328) 1,422,692 (29,405) 1,393,287 (437,119) (46,723) 37,855 (445,987) 947,300 3,329, ,489 (585,176) (107,029) (91,331) 6,995 (776,541) 118,948 (5,608) 113,340 (131,814) 2,693 (129,121) (15,781) 3,138,836 (6,837,318) (6,123,933) (2,433,653) (1,967,423) 1,171,413 (491,154) (96,375) (138,232) 8,242 (717,519) 453,894 (2,017) 451,877 (154,810) 37,622 (117,188) 334, (1.64) The annexed notes 1 to 16 form an integral part of these condensed interim financial statements. Yasser Pirmuhammad Chief Financial Officer Condensed Interim Statement of Comprehensive Income For the nine months ended Net profit / (Loss) for the period Nine Months Ended Three Months Ended Sep. 30, Sep. 30, Sep 30, Sep 30,...Rupees in ` , ,300 (15,781) 334,689 Other comprehensive loss items not to be reclassified to profit or loss account in subsequent periods Acturial gain/ (loss) recognized directly in equity Related deferred tax Total comprehensive income / (Loss) for the period (343) (343) 588,108 (210) (210) 947,090 (15,781) The annexed notes 1 to 16 form an integral part of these condensed interim financial statements. 334,689 Yasser Pirmuhammad Chief Financial Officer 6

9 Condensed Interim Statement of Cash Flows For the nine months ended CASH FLOWS FROM OPERATING ACTIVITES Profit before taxation 962,740 Adjustments for noncash charges and other items: Depreciation / amortization Loss on disposal of operating fixed assets Expenses arising from equity settled share based payment plans Retirement benefits Interest income Finance costs Note...Rupees in ` ,511 1,595 18,391 61,697 (16) 12,164 1,312,082 1,393, , ,033 58,744 (18) 29,405 1,755,398 (Increase) / Decrease in current assets Stores and spares Stockintrade Trade debts Shortterm loans and advances Trade deposits and shortterm prepayments Other receivables 516 (157,692) (74,507) (111,013) (112,407) (4,168) (459,271) 852,811 (3,326) 277,352 (195,263) (10,376) (4,323) (921) 63,143 1,818,541 Increase in current liabilities Trade and other payables (exluding unclaimed dividend) Cash generated from operations 487,390 1,340, ,202 2,464,743 Finance costs paid Income tax paid Retirement benefits paid Longterm loans and advances Net cash generated from operating activities (12,166) (478,571) (61,697) ,364 (34,500) (539,685) (18,448) (61) 1,872,049 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure Sale proceeds from disposal of operating fixed assets Interest received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Shortterm borrowings repaid Longterm financing repaid Dividends paid Net cash used in financing activities (171,868) 22, (149,825) (430,471) (430,471) (120,753) 10, (110,469) (500,000) (500,000) (287,990) (1,287,990) NET INCREASE IN CASH AND CASH EQUIVALENTS 208, ,590 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD (255,452) (125,001) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 10 (47,384) 348,589 The annexed notes 1 to 16 form an integral part of these condensed interim financial statements. 7 Yasser Pirmuhammad Chief Financial Officer

10 Condensed Interim Statement of Changes in Equity For the nine months ended Capital Reserves Revenue Reserves Balance as at January 1, Issued, subscribed and paidup share capital Longterm liabilities forgone Difference of share capital under scheme of arrangement for amalgamation Other...Rupees in ` ,448 5,935 18, ,083 General reserve 2,035,538 Unappropriated profit 1,047,336 Total 3,412,340 Employee benefits cost under IFRS 2 Share based payment 22,033 22,033 Final Rs. 30 per ordinary share for the year ended December 31, 2016 (289,343) (289,343) Transfer to general reserve 700,000 (700,000) Net profit for the period 947, ,300 Other comprehensive loss for the period (210) (210) Total comprehensive income for the period 947, ,090 Balance as at 96,448 5,935 18, ,116 2,735,538 1,005,083 4,092,120 Balance as at January 1, 96,448 5,935 18, ,109 2,735,538 1,054,588 4,148,618 Employee benefits cost under IFRS 2 Share based payment 18,391 18,391 Final Rs. 45 per ordinary share for the year ended December 31, (434,014) (434,014) Transfer to general reserve 600,000 (600,000) Net profit for the period 588, ,451 Other comprehensive loss for the period (343) (343) Total comprehensive income for the period 588, ,108 Balance as at 96,448 5,935 18, ,500 3,335, ,682 4,321,103 The annexed notes 1 to 16 form an integral part of these condensed interim financial statements. 8 Yasser Pirmuhammad Chief Financial Officer

11 Notes to the Condensed Interim Financial Statements For the nine months ended THE COMPANY AND ITS OPERATIONS Sanofiaventis Pakistan Limited (the Company) was incorporated in Pakistan in 1967 as a Public Limited Company. The shares of the Company are listed on Pakistan Stock Exchange Limited. The Company is a subsidiary of SECIPE, France (the Parent Company). The Ultimate Parent of the Company is Sanofi S.A., France. The registered office of the Company is located at Plot 23, Sector 22, Korangi Industrial Area, Karachi. The Company is engaged in the manufacturing and selling of pharmaceutical and consumer products. BASIS OF PREPARATION These condensed interim financial statements of the Company for the nine months period ended have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of: International Accounting Standard (IAS) 34, Interim Financial Reporting issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, ; and Provisions of and directives issued under the Companies Act,. Where the provisions of and directives issued under the Companies Act, differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, have been followed. These condensed interim financial statement of the Company for the nine months ended are unaudited and do not include all the information and disclosures as required in the annual financial statements and should be read in conjuction with the Company s annual financial statements for the year ended December 31,. These condensed interim financial statements are being submitted to the shareholders as required by the Section 237 of the Companies Act,. ACCOUNTING POLICIES 3.1 SIGNIFICANT ACCOUNTING POLICIES The accounting policies and the methods of computation used in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual audited financial statements for the year ended December 31,, except as disclosed below: New / Revised Standards, Interpretations and Amendments. IFRS 2 IFRS 4 IAS 28 IAS 40 IFRIC 22 Sharebased Payments Classification and Measurement of Sharebased Payments Transaction (Amendments) Insurance Contracts: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments) Investments in Associates and Joint Ventures: Clarification that measuring investees at fair value through profit or loss is an investment by investment choice (Amendment) Investment Property: Transfers of Investment Property (Amendments) Foregin Currency Transactions and Advance Consideration The adoption of the above standards did not have any effect on the condensed interim financial statements The Company follows the practice of conducting actuarial valuation annually at the year end. Hence, the impact of remeasurement of postemployment benefit plans has not been incorporated in the condensed interim financial statements. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss. 9

12 Notes to the Condensed Interim Financial Statements For the nine months ended ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of these condensed interim financial statements is in conformity with the approved accounting standards which requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company s accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. However, actual results may differ from these estimates. During the preparation of these condensed interim financial statements, the significant judgments made by management in applying the Company s accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the audited annual financial statements for the year ended December 31,. 5. PROPERTY, PLANT AND EQUIPMENT Operating fixed assets Capital workinprogress Note Rupees in ` ,462, ,275 1,592,189 (Audited) December 31, 1,584, ,822 1,701, OPERATING FIXED ASSETS Opening net book value 1,584,463 1,703,331 Additions during the period / year at cost , ,957 Disposals during the period / year (23,622) (17,966) Depreciation charged during the period / year (254,843) (334,859) Closing net book value 1,462,914 1,584, Additions to operating fixed assets, including transfers from capital workinprogress and the disposals made during the period were as follows: Building on leasehold land Plant and machinery Furniture and fixtures Factory and office equipment Motor vehicles Additions (at cost) Sep. 30, Sep. 30,...Rupees in ` ,705 82,304 3,465 27,727 31,715 26,756 89, ,320 24,098 Disposals (at net book value) Sep. 30, ,457 Sep. 30, 1, , , ,520 23,622 11, Capital workinprogress Building on leasehold land Plant and machinery Others Movement in capital workinprogress is as follows: Opening balance Additions during the year Transferred to operating fixed assets Closing balance...rupees in ` ,074 96,620 27, , ,822 87,450 (74,997) 129,275 (Audited) December 31, 13,314 83,988 19, , ,124 77,595 (123,897) 116,822 10

13 Notes to the Condensed Interim Financial Statements For the nine months ended STOCKINTRADE Raw and packing material in hand in transit 11 Note...Rupees in ` ,161, ,855 (Audited) December 31, 1,042, ,421 1,273,794 1,146,099 Provision against raw and packing material 6.1 (116,340) (118,992) 1,157,454 1,027,107 Workinprocess 95,585 37,598 Finished goods in hand in transit Provision against finished goods Movement of provision against raw and packing material 6.2 & 6.3 Opening balance (Reversal) / Charge for the period / year Write off during the period / year Closing balance Movement of provision against finished goods Opening balance Charge for the period / year Write off during the period / year Closing balance 1,359, ,053 1,552,827 (241,839) 1,310,988 2,564, ,992 (2,652) 116, ,181 87,639 (7,981) 241,839 1,343, ,159 1,503,811 (162,181) 1,341,630 2,406, ,464 21,654 (10,126) 118, ,317 47,382 (7,518) 162,181 Includes write down of finished goods costing Rs (: Rs ) million, to their net realizable value of Rs (: Rs ) million. OTHER RECEIVABLES Includes Rs. 6,122 (: Rs. 5,607) million recievable from related parties. TRADE AND OTHER PAYABLES Trade creditors Related parties Other trade creditors Other payables Accrued liabilities Provision for Infrastructure Development Cess Employees Pension Fund Employees Gratuity Fund Amount payable under voluntary separation scheme Advances from customers Workers Profits Participation Fund Workers Welfare Fund Central Research Fund Compensated absences Security deposits Contractors retention money Withholding income tax payable Sales tax payable (Audited) December 31,...Rupees in ` , ,137 1,070, , ,848 88,812 15,454 29,111 44,223 87,084 10, , ,483 22,221 1,615,439 2,685, , , , , ,009 88,812 15,453 70,725 34,341 80,909 67,270 17,050 69, ,850 8,335 13,335 1,483,832 2,198,390

14 Notes to the Condensed Interim Financial Statements For the nine months ended CONTINGENCIES AND COMMITMENTS Contingencies There is no change in the status of contingencies, as disclosed in note 18.1 to the annual financial statements of the Company for the year ended December 31, except for the following: During the year ended December 31, 2016, Inland Revenue, Enforcement & Collection had framed the assessment for tax year 2014 on the alleged contention that the Company had short deducted income tax from payments made to vendors under various heads of expenditures. Total tax demand raised under the order was Rs million. The Company filed an appeal before Commissioner Inland Revenue (Appeals) [CIR(A)]. During the period, the CIR(A) has remanded back the proceedings for fresh consideration to the Deputy Commissioner Inland Revenue. The DCIR passed an order under section 122(5) of the Income Tax Ordinance, 2001 for the year ended December 31, 2012, increasing the tax liability by Rs million on the contention that the Company understated the gain on sale of WAH Site and disallowance of certain expenses related to sales promotion and advertisement. The Company filed and appeal before the CIR(A), wherein the CIR(A) vide order dated July 18,, has deleted the addition for gain on disposal of WAH Site while remanded back on the additions relating to sales promotion and advertisement. An appeal has been filed with the ATIR against the said decision of the CIR(A) on the issues remanded back. For the year ended December 31, 2015, the tax department conducted monitoring proceedings under section 161 of the Ordiance and raised the demand of Rs million. The company filed an appeal before CIR(A). CIR(A) vide his order dated 31 January has remanded back the matter to the Officer. Appeal has been file with ATIR which is yet to be fixed for hearing. 9.2 The management, based on tax advise, is confident for a favourable outcome, hence no provision is made in respect of these order. Commitments Commitments for capital expenditure Postdated cheques issued to Collector of Cutoms Outstanding letters of credit Outstanding bank guarantees Outstanding bank contracts (Audited) December 31,...Rupees in ` ,381 21, , , ,342 92,609 21, , ,524 73, CASH AND CASH EQUIVALENTS Cash and bank balances Short term borrowings 58,119 (105,503) (47,384)...Rupees in ` , , TRANSACTIONS WITH RELATED PARTIES The related parties of the Company comprise of Associates, employees retirement funds, directors and key management personnel. Transactions with related parties other than those disclosed elsewhere in the financial statements are as follows: There are no transactions with key management personnel other than under the terms of employment. Details of transactions with related parties during the period are as follows: 12

15 i) Gross Sales ii) Purchase of goods iii) Purchase of services iv) Insurance claim received v) Contribution paid Provident fund Gratuity fund Pension fund vi) Remuneration of key management personnel Notes to the Condensed Interim Financial Statements For the nine months ended Associates Retirement benefit plans Key management personnel Total...Rupees in ` ,161 15,161 11,576 11,576 3,622, ,544 2,477 41,574 30,045 31, ,455 3,622, ,544 2,477 41,574 30,045 31, ,455 Associates Retirement benefit plans Key management personnel 2,933,594 8,748 6,736 38,692 9,563 8, ,788 Total 2,933,594 8,748 6,736 38,692 9,563 8, , FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES The Company s activities expose it to a variety of financial risks. These condensed interim financial statements do not include all financial risk management information and disclosures which are required in the annual audited financial statements and should be read in conjunction with the annual audited financial statements of the Company as at 31 December. There has been no change in any risk management policies since the year end FAIR VALUES OF ASSETS AND LIABILITIES The carrying values of all financial assets and liabilities are estimated to approximate their fair values. There were no transfers amongst levels during the period. ENTITY WIDE INFORMATION The Company constitutes a single reportable segment, the principal classes of products provided are pharmaceutical and vaccine products. Information about classes of products net sales 14.3 Pharmaceutical Vaccine Information about geographical areas net sales Pakistan Afghanistan Others...Rupees in ` ,859, ,456 10,099,022 10,042,083 41,778 15,161 10,099,022 8,982, ,761 9,767,953 9,623, ,770 11,576 9,767, DATE OF AUTHORISATION FOR ISSUE These condensed interim financial statements were authorized for issue on October 25, by the Board of Directors of the Company. GENERAL Figures presented in these condensed interim financial statements have been rounded off to the nearest thousand rupees, unless otherwise stated. Yasser Pirmuhammad Chief Financial Officer 13

sanofi-aventis Pakistan limited CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (UN-AUDITED)

sanofi-aventis Pakistan limited CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (UN-AUDITED) sanofiaventis Pakistan limited CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED) Contents 2 Company Information 3 Directors Report to the Shareholders 5 Auditors Report