Sanofi-aventis shareholders annual general meeting. Paris - May 14, 2008

Transcription

1 Sanofi-aventis shareholders annual general meeting Paris - May 14, 2008

2 Forward-Looking Statements This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements include financial and product development projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future events, operations, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words expects, anticipates, believes, intends, estimates, plans and similar expressions. Although sanofiaventis management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of sanofi-aventis, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include among other things, the uncertainties inherent in research and development, future clinical data and analysis, including post marketing, decisions by regulatory authorities, such as the FDA or the EMEA, regarding whether and when to approve any drug, device or biological application that may be filed for any such product candidates as well as their decisions regarding labelling and other matters that could affect the availability or commercial potential of such products candidates, the absence of guarantee that the products candidates if approved will be commercially successful, the future approval and commercial success of therapeutic alternatives as well as those discussed or identified in the public filings with the SEC and the AMF made by sanofi-aventis, including those listed under Risk Factors and Cautionary Statement Regarding Forward-Looking Statements in sanofi-aventis annual report on Form 20-F for the year ended December 31, Other than as required by applicable law, sanofi-aventis does not undertake any obligation to update or revise any forward-looking information or statements. 2

3 Sanofi-aventis: Annual general meeting: May 14, 2008 Introduction Jean-François Dehecq Chairman of the Board of Directors Business review for 2007 and outlook for 2008 Gérard Le Fur Chief Executive Officer 2007 financial results Jean-Claude Leroy Executive Vice President, Finance and Legal Conclusion Jean-François Dehecq Chairman of the Board of Directors 3

4 Annual general meeting of May 14, 2008 Jean-François Dehecq Chairman of the Board of Directors

5 2008 Annual general meeting Shareholder consultation results Trends in share price and dividend Positioning in the world pharmaceutical market R&D portfolio 2007 results Information for individual shareholders Therapeutic fields and flagship drugs Business development strategy Growth in emerging markets Human Vaccines business Share ownership and capital structure Commitment to sustainable development Ethics and corporate governance Humanitarian sponsorship and improving access to drugs 51 % 45 % 44 % 43 % 42% 34 % 33% 25 % 22 % 19 % 63 % 60 % 60 % % of responses per topic 0% 10% 20% 30% 40% 50% 60% 70% 5

6 Sanofi-aventis share price performance since January 1, /01/07 15/01/07 29/01/07 12/02/07 26/02/07 12/03/07 26/03/07 09/04/07 23/04/07 07/05/07 21/05/07 04/06/07 18/06/07 02/07/07 16/07/07 30/07/07 13/08/07 27/08/07 10/09/07 24/09/07 08/10/07 22/10/07 05/11/07 19/11/07 03/12/07 17/12/07 31/12/07 14/01/08 28/01/08 11/02/08 25/02/08 10/03/08 24/03/08 07/04/08 21/04/08 05/05/08 CAC 40 Pharma Europe EURO STOXX 50 Sanofi-aventis Source: Bloomberg, base 100 on January 1,

7 Sanofi-aventis share price performance vs. European pharma since January 1, /01/07 15/01/07 29/01/07 12/02/07 26/02/07 12/03/07 26/03/07 09/04/07 23/04/07 07/05/07 21/05/07 04/06/07 18/06/07 02/07/07 16/07/07 30/07/07 13/08/07 27/08/07 10/09/07 24/09/07 08/10/07 22/10/07 05/11/07 19/11/07 03/12/07 17/12/07 31/12/07 14/01/08 28/01/08 11/02/08 25/02/08 10/03/08 24/03/08 07/04/08 21/04/08 05/05/08 Sanofi-aventis Roche Novartis AstraZeneca GSK Source: Bloomberg, base 100 on January 1,

8 Sanofi-aventis ADR price performance since January 1, /01/07 15/01/07 29/01/07 12/02/07 26/02/07 12/03/07 26/03/07 09/04/07 23/04/07 07/05/07 21/05/07 04/06/07 18/06/07 02/07/07 16/07/07 30/07/07 13/08/07 27/08/07 10/09/07 24/09/07 08/10/07 22/10/07 05/11/07 19/11/07 03/12/07 17/12/07 31/12/07 14/01/08 28/01/08 11/02/08 25/02/08 10/03/08 24/03/08 07/04/08 21/04/08 05/05/08 Sanofi-aventis J&J Lilly Merck Wyeth Pfizer BMS Schering Pl. Source: Bloomberg, base 100 on January 1,

9 103% dividend growth over 4 years Average dividend growth of 19.4% since

10 Creation of a strategy committee Decided by the Board of Directors on February 11, 2008 The Committee s role is to formulate proposals for the Board on key strategies for the development of the Group, in response to the medium/long-term challenges facing the industry and its environment The Committee is chaired by the Chairman of the Board of Directors, and comprises: Gérard Le Fur Thierry Desmarest Jean-René Fourtou Lindsay Owen-Jones 10

11 Specialist board committees The Board meeting of April 29, 2008 decided to split the Compensation, Appointments and Governance Committee into two separate committees: the Compensation Committee the Appointments and Governance Committee The structure and role of the Audit Committee are unchanged 11

12 Reappointment of directors The term of office of 13 of our 16 directors expires at the end of the 2008 annual general meeting 4 directors do not intend to seek reappointment In order to renew one third of the Board each year, beginning in 2010, the proposed term of office is either 2, 3 or 4 years 12

13 Composition of the board of directors submitted for approval by the OAGM (1) Currently in office: Gérard Le Fur (2010) Gérard Van Kemmel (2011) (2) Lord Douro (2010) (2) New appointments proposed: Claudie Haigneré (2012) (2) Uwe Bicker (2012) (2) Patrick de la Chevardière (2012) Gunter Thielen (2011) (2) Reappointments proposed: Jean-François Dehecq (2011) Jean-Marc Bruel (2010) (2) Robert Castaigne (2010) Thierry Desmarest (2011) Jean-René Fourtou (2012) (2) Igor Landau (2011) Christian Mulliez (2010) Lindsay Owen-Jones (2012) Klaus Pohle (2012) (2) (1) Ordinary Annual General Meeting (2) Independent directors 13

14 Sanofi-aventis: Annual general meeting, May 14, 2008 Introduction Jean-François Dehecq Chairman of the Board of Directors Business review for 2007 and outlook for 2008 Gérard Le Fur Chief Executive Officer 2007 financial results Jean-Claude Leroy Executive Vice President, Finance and Legal Conclusion Jean-François Dehecq Chairman of the Board of Directors 14

15 Business review for 2007 and outlook for 2008 Gérard Le Fur Chief Executive Officer 15

16 The world pharmaceutical market (1) IMS 16

17 2007: Solid performance Net sales 28,052 million +2.8% on a comparable basis Adjusted EPS excluding selected items (1) 5.17 per share +5.9% in euros (+15.7% in U.S. dollars) Earnings growth (2) ahead of our guidance (2) 13.2% growth, vs. guidance of 10% (1) See definition in the Appendices (2) Adjusted EPS excluding selected items at an exchange rate of 1 = $

18 2007: net sales up 2.8% on comparable basis despite impact of generic versions billion 2007 Change (1) Top 15 Pharma % Base Business Pharma 8.2 Total Pharma 25.3 Vaccines % +1.7 % % Group net sales % (1) on a comparable basis 18

19 2007: pharma success stories 8 products with 1bn+ of sales, 4 of them with double-digit growth (1) up 29% at 5.6 billion (2) full recovery in the United States up 13% at 2.6 billion no.1 in a still-growing market up 29% at 2 billion leading insulin brand in the market up 12% at 1.9 billion (1) On a comparable basis (2) Worldwide presence (see definition in the appendices) 19

20 Base business virtually stable Net sales: 8.2bn, down 1.5% (1) Good profitability thanks to modest and targeted investment Achieved through small, dedicated teams Focusing on the right sales channels (1) On a comparable basis 20

21 2007: vaccines, a strategic priority Net sales: 2.8bn, up 14.5% (1) 10% of total Group sales, vs. 9% in 2006 World leader in influenza vaccines : 86% growth (1) : successful launch by the 50/50 JV with Merck in Europe (1) on a comparable basis 21

22 2007: geographic split of net sales billion 2007 Change (1) Europe % United States % Other Countries % Group net sales % (1) On a comparable basis 22

23 Strong growth contribution from emerging markets *BRIC-M: Brazil, Russia, India, China, Mexico (1) Net sales on a comparable basis 23

24 2007: leading positions in high-growth markets N o 1 in the BRIC-M countries Thanks to a full scope offering Innovative products Local ranges of standard, OTC and generic products Vaccines And substantial, sustained investments 24

25 2007: ongoing adaptation of resources Selective headcount reductions Increases in Vaccines, and in emerging markets in Pharmaceuticals Stable in Pharmaceuticals R&D Reductions in mature pharmaceuticals markets (-7%) industrial operations (-4%) and support functions (-4%) Further reduction in ratio of selling, general and administrative expenses to net sales 30.2% in % in % in

26 First quarter of 2008 Net sales 6,937 million +0.8% on a comparable basis Adjusted EPS excluding selected items (1) 1.43 per share +1.4% in euros (+15.7% in U.S. dollars) Confirmation of 2008 full year guidance at constant 2007 euro/dollar parity (2) (1) Adjusted EPS (see definition in the appendices) (2) 1 euro = dollar 26

27 2007: redefinition of R&D priorities R&D Day: September 17, 2007 Presentation of the portfolio Announcement of targets for submissions in the period Objective of reinforcing our presence in Biotech Update as of February 12, 2008 Projects in line with the targets announced Major results expected in

28 Key therapeutic fields and major projects Cardio-metabolism (1) 14 products in Phase IIb/III AVE5530 ilepatril rimonabant AVE0010 AVE2268 Multaq AVE5026 Idrabio. NV1FGF Central Nervous System 9 products in Phase IIb/III eplivanserin/volinanserin saredutant/amibegron Oncology 8 products in Phase IIb/III Aflibercept S1 AVE8062 Vaccines 13 products in Phase IIb/III H5N1 Seasonal influenza Menactra Toddler Dengue Fever (1) Includes metabolic disorders, thrombosis and cardiovascular 28

29 Multaq : a potential new treatment for atrial fibrillation Atrial fibrillation is a common condition, more prevalent in older people It can lead to functional disability, and increases the risk of death 2 types of treatment are available correcting an irregular heartbeat or slowing the heartbeat The aim of the ATHENA trial is to assess the efficacy of Multaq on morbidity (cardiovascular hospitalization) and mortality (death from any cause) 29

30 Multaq : a potential new treatment for atrial fibrillation ATHENA Dronedarone 400 mg twice-daily Screening R Placebo Evaluation criteria: cardiovascular hospitalization and death M 30 (maximum Tx duration minimum duration 12 months) Medical practitioner interest confirmed by excellent enrolment levels First patient enrolled June 2005 Last patient signed off January 2008 The results of the trial will be presented at the American Heart Rate Society meeting to be held in San Francisco on May 15, 2008 Submission scheduled for June

31 AVE5026: injectable anticoagulant with excellent benefit/risk ratio Broad pharmacodynamic profile Residual anti-iia activity, TFPI, TAFI Convincing Phase II results Profile suited to prescriber and patient needs No adverse reaction with other drugs Injection by healthcare personnel (during hospitalization): No adverse reaction with food Easy to use Maximum compliance, giving total protection when risk of thromboembolic events is high Submission scheduled for

32 Idrabiotaparinux: first anticoagulant administered in a single weekly dose Predictable, reversible response (neutralized by avidin) No adverse reaction with food or with other drugs Better healthcare chain No more need for bridging with other anticoagulants No more need for lab tests Weekly therapeutic regime much appreciated by both doctors and patients First submission scheduled for

33 Rimonabant: major development program Positive final appraisal by NICE in March, recommending the use and reimbursement of Acomplia in England ARPEGGIO trial (in association with insulin) Results to be presented in June 2008 Monitoring of supplemental neurological and psychiatric tolerance data by agreement with the FDA Submission scheduled Type 2 diabetes: 2009 Fixed-dose combo with metformin: 2010 Fixed-dose combo with simvastatin: 2011 CRESCENDO trial:

34 Eplivanserin: new approach to the treatment of insomnia 5-HT2A receptor antagonist Non-sedative compound that increases slow wave sleep Aimed mainly at older people who have no difficulty falling asleep but have a short night s sleep and wake frequently Fewer side effects than with hypnotics Possible exemption from the scheduled drugs regime in the USA Phase III trial program completed (approx 2,600 patients) 34

35 Aflibercept (VEGF-Trap): update on the development program Refractory/recividistic ovarian cancer: Database due to be closed in Q Ongoing assessment in: Prostate cancer (with Taxotere /prednisone) 2 nd line in metastatic colorectal cancer (with FOLFIRI) 2 nd line in non small cell lung cancer (with Taxotere ) 1 st line in metastatic pancreatic cancer (with gemcitabine) Trials in preparatory Phase: 1 st line in metastatic colorectal cancer 1 st line in metastatic breast cancer First submission scheduled for H

36 Vaccines portfolio Influenza Intradermic vaccine, improved formulation, cell culture Meningitis Menactra Toddler (age 9 months+) in Phase III Pediatric combination vaccines R&D focus on adapting the range in response to market needs Pentacel (US), Pentaxim (International), Pediacel (expansion in Europe) New targets: Dengue fever Usually a benign disease, but sometimes serious or even fatal 100+ countries affected, increasing number of cases in the USA Candidate vaccine in Phase II 36

37 Ambitious submission targets Around 30 potential submissions of new products scheduled before end 2010 Submissions scheduled for 2008: Multaq : Atrial fibrillation Eplivanserin : Sleep maintenance Afibercept : 3 rd -line treatment for ovarian cancer S-1 : 1 st -line treatment for gastric cancer Saredutant : Depression Amibegron : Depression 37

38 Implementing our business development strategy Reinforcing our presence in biotechnology Building a presence in monoclonal antibodies by ensuring access to all the necessary resources Regeneron, Dyax Further alliances in vaccines Agreements in 2007 with Acambis, Crucell, Statens Serum Institut, Institut Pasteur Pharma/vaccines synergies (alliance with Oxford BioMedica on Trovax ) Buyout of rights to some of our products in Japan Myslee, Panaldine, 38

39 Outlook for 2008 A rich year in clinical trial results Promising outlook for our flagship pharma products and for vaccines Need for further selective and effective adaptation measures Decentralized management, well adapted to changes in each of our markets 39

40 Outlook for 2008 Barring major adverse events, the Group expects 2008 full year adjusted EPS excluding selected items (1) to growth around 7%, calculated at constant 2007 euro/usd parity (1.371) Sensitivity to the euro/usd exchange rate is estimated at 0.5% of growth for a 1-cent movement in the rate (1) Adjusted EPS excluding selected items for 2007 was

41 Sanofi-aventis: a healthcare partner for today and tomorrow Strengthening our commitment to ethical and social responsibility Our commitment to society Launch of ASAQ, a non-patented anti-malaria drug, in African public-sector markets in partnership with the DNDi Stepping up the fight against counterfeiting by establishing: an international, multi-disciplinary organization a central counterfeit product analysis laboratory Implementation of a Supplier Code of Conduct, backed by: a training program for buyers supplier assessments and audit 41

42 Sanofi-aventis: a healthcare partner for today and tomorrow Our commitment to our employees International diversity initiatives Promotion of gender parity in the workplace Providing and maintaining jobs for people with disabilities Our commitment to the environment Reduction of CO 2 emissions (2007 vs. 2006): use of hydrocarbons at our sites: -4% energy purchased: -5% medical rep vehicle fleet: -14% shipment of goods: Europe (road): -9% intercontinental (sea/air): -22% 42

43 Recognition of our commitment Member of the principal ethical, social and environmental indices Included in the Dow Jones World Sustainability Index in

44 Sanofi-aventis: Annual General Meeting, May 14, 2008 Introduction Jean-François Dehecq Chairman of the Board of Directors Business review for 2007 and outlook for 2008 Gérard Le Fur Chief Executive Officer 2007 financial results Jean-Claude Leroy Executive Vice President, Finance and Legal Conclusion Jean-François Dehecq Chairman of the Board of Directors 44

45 2007 Financial results Jean-Claude Leroy Executive Vice President, Finance and Legal 45

46 2007 operating income current adjusted (1) : +6.5% excluding exchange rate effects billion 2007 %of net sales 2006 %of net sales Change Change excl. Exchange rate effects Net sales % +2.8% Cost of sales (7.6) 27.0% (7.6) 26.6% R&D expenses (4.5) (4.4) +2.4 % +5.5% Selling and general expenses (7.6) 26.9% (8.0) 28.3% -5.8 % -2.1% Operating income current adjusted (1) % % -0.1 % +6.5 % (1) Operating income before restructuring, impairment of property, plant and equipment and intangibles, gains/losses on disposals, and litigation 46

47 Other income statement items Interest expense on debt 223 million, vs. 286 million in 2006 Positive effect of debt reduction, negative effect of higher interest rates Income tax expense 2007: effective tax rate of 30.6%, unchanged from

48 2007 adjusted net income (1) 2007: Adjusted net income (1) : 7,110 million +1.0% Adjusted EPS (1) : % (1) See definitions in the appendices 48

49 2007 selected items million Restructuring costs (95) (122) Gains/(loss) on disposals Provisions for financial instruments, litigation, tax disputes and other items Total, net of tax Gain on Exubera in 2006 Settlement of major tax disputes in

50 2007 adjusted net income(1) excluding selected items 2007 excluding selected items: Adjusted net income (1) : 6,961 million +5.9% Adjusted EPS (1) : % (1) See definitions in the appendices 50

51 2007: reconciliation of adjusted net income to consolidated net income Adjusted net income 7,110 M 7,040 M Material accounting adjustments related to business combinations: - amortization and impairment of intangible assets, net of tax - expenses arising from the effect of acquisitions on equity investees -1,684 M -163 M Consolidated net income 5,263 M 4,006 M Earnings per share

52 Simplified statement of cash flows billion Net cash provided by operating activities Capital expenditure (1.6) (1.5) Acquisitions/disposals and other items Free cash flow before dividend and share repurchases Dividend (2.4) (2.1) Share repurchases (1.8) - Free Cash Flow Net debt at year-end Further cut in gearing to 9.5%, vs. 12.6% at December 31,

53 2007: 18.3% dividend growth (1) 2006 dividend: 1.75 per share 2007 dividend: 2.07 per share +18.3% Significant increase in payout ratio, from 35.9% of adjusted EPS excluding selected items for 2006 to 40% for 2007 (1) Subject to approval by the AGM on May 14,

54 Relations with individual shareholders Individual Shareholders Committee 10 members, representative of the individual shareholder base 4 meetings a year with the Investor Relations and Finance teams Forum for suggestions and debate Letter to Shareholders: 4 issues a year Individual Shareholder Handbook edition Website: Toll free number (within France): Meetings with shareholders Information meetings across France 8 scheduled for 2008: Toulouse, Orléans, Aix en Provence, Lyon, Montpellier, Dijon, Nice, Lille Stand at the annual Actionaria show November 21 & 22,

55 Sanofi-aventis: Annual general meeting, May 14, 2008 Introduction Jean-François Dehecq Chairman of the Board of Directors Business review for 2007 and outlook for 2008 Gérard Le Fur Chief Executive Officer 2007 financial results Jean-Claude Leroy Executive Vice President, Finance and Legal Conclusion Jean-François Dehecq Chairman of the Board of Directors 55

56 Conclusion Jean-François Dehecq Chairman of the Board of Directors 56

57 Share ownership trends by geographic region March 2008 March 2007 France 46.3% * * USA 29.8% France 46.2% USA 30.1% Germ any 4.4% RoE 5.3% UK 8.1% Sw itzerland 1.8% RoW 4.3% Germ any 5.1% RoE 4.7% Sw itzerland 2.7% RoW 2.9% UK 8.3% * 24,1% excluding Total et L Oréal, including unassigned shares * 22,4% excluding Total et L Oréal including unassigned shares 57

58 Share ownership trends by shareholder profile March 2008 March 2007 Institutional 67.7% Institutional 65.6% L'Oréal 9.0% Total 13.2% Re tail 8.8% Employees 1.3% L'Oréal 10.6% Total 13.2% Retail 9.4% Employees 1.2% 58

59 Sanofi-aventis Shareholders Annual general meeting Appendices

60 Definition of comparable net sales Comparable net sales: When we refer to the change in our sales on a comparable basis, we mean that we exclude the impact of exchange rate movements and changes in Group structure (acquisitions and divestments of interests in entities and rights to products, and changes in consolidation method for consolidated entities). We exclude the impact of exchange rates by recalculating sales for the prior period on the basis of exchange rates used in the current period. We exclude the impact of acquisitions by including sales from the acquired entity or product rights for a portion of the prior period equal to the portion of the current period during which we owned them, based on sales information we receive from the party from whom we make the acquisition. Similarly, we exclude sales in the relevant portion of the prior period when we have sold an entity or rights to a product. For a change in consolidation method, the prior period is recalculated on the basis of the method used for the current period. 60

61 Definition of worldwide presence Worldwide presence of a product: When we refer to the worldwide presence of a product, we mean our consolidated net sales of that product, minus sales of the product to our alliance partners plus non-consolidated sales made through our alliances with Bristol-Myers Squibb on Plavix /Iscover (clopidogrel) and Aprovel /Avapro /Karvea (irbesartan), based on information provided to us by our alliance partner. 61

62 Definition of adjusted net income Net income attribuable to minority interests ADD BACK: Material impacts of the application of purchase accounting to acquisitions made by sanofiaventis (primarily the acquisition of Aventis): Charges related to remeasurement of inventories, net of tax Amortization/impairment charges arising from remeasurement of intangible assets, net of tax Any impairment of goodwill ADD BACK: Integration and restructuring costs (net of tax) that are specific to the acquisition of Aventis by sanofi-aventis = Adjusted net income 62

63 Adjusted consolidated income statement: FY 2007 (I) million 2007 as% of net sales 2006 as% of net sales % change NET SALES 28, % 28, % -1.1% Other revenues 1, % 1, % +3.5% Cost of sales (7,571) (27.0%) (7,555) (26.6%) +0.2% GROSS PROFIT 21, % 21, % -1.4% R&D expenses (4,537) (16.2%) (4,430) (15.6%) +2.4% Selling & general expenses (7,554) (26.9%) (8,020) (28.3%) -5.8% Other current operating income & expenses Amortization of intangibles (143) - (132) - - OPERATING INCOME CURRENT (1) 9, % 9, % -0.1% Restructuring costs (137) - (176) - - Impairment of PP&E and intangibles 0 - (217) - - Gain/loss on disposals, litigation OPERATING INCOME 9, % 9, % -3.0% (1) Operating income before restructuring, impairment of PP&E and intangibles, gains/losses on disposals, and litigation 63

64 Adjusted consolidated income statement: FY 2007 (II) million 2007 as% of net sales 2006 as% of net sales % change OPERATING INCOME 9, % 9, % -3.0% Net financial expense (139) - (80) - - INCOME BEFORE TAX AND ASSOCIATES 9, % 9, % -3.6% Income tax expense (2,572) - (2,816) -8.7% Share of profits from associates % Minority interests (419) - (393) % NET INCOME 7, % 7, % +1.0% EPS (in euros) % 64

65 FY 2007: Consolidated income statement million NET SALES 28,052 28,373 Other revenues 1,155 1,116 Cost of sales (7,571) (7,587) GROSS PROFIT 21,636 21,902 Research and development expenses (4,537) (4,430) Selling and general expenses (7,554) (8,020) Other current operating income and expenses Amortization of intangibles (3,654) (3,998) OPERATING INCOME CURRENT* 6,106 5,729 Restructuring costs (137) (274) Impairment of property, plant & equipment and intangibles (58) (1,163) Gains and losses on disposals and litigation OPERATING INCOME 5,911 4,828 Financial expenses (329) (455) Financial income INCOME BEFORE TAX AND ASSOCIATES 5,772 4,748 Income tax expense (687) (800) Share of profits of associates Minority interests (419) (393) NET INCOME attributable to equity holders of the Company 5,263 4,006 Average number of shares outstanding (million) 1, ,346.8 Earnings per share (in euros) * Operating income before restructuring, impairment of PP&E and intangibles, gains/losses on disposals, and litigation 65

66 Simplified consolidated balance sheet In million 31/12/07 31/12/06 In million 31/12/07 31/12/06 ASSETS Property, plant and equipment 6,538 6,219 Intangible assets (including goodwill) Non-current financial assets, investments in associates and deferred tax assets LIABILITIES & EQUITY Equity attributable to equity-holders of the parent 44,542 45,600 Minority interests ,381 52,210 Total shareholders equity 44,719 45,820 6,442 7,174 Long-term debt Provisions and other non-current liabilities Deferred tax liabilities 6,935 9,246 Non-current assets 59,361 65,603 Non-current liabilities 17,526 21,665 3,734 6,857 4,499 7,920 Inventories, accounts receivable and current financial assets 10,842 11,007 Accounts payable and other current liabilities 7,462 7,833 Cash and cash equivalents 1,711 1,153 Short-term debt 2,207 2,445 Current assets 12,553 12,160 Current liabilities 9,669 10,278 TOTAL ASSETS 71,914 77,763 TOTAL LIABILITIES & EQUITY 71,914 77,763 66