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 counter party risk to be low.
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 €5,000 million at 31 December 2022. These lines were not subject to any covenants.
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 2022, marketable securities consist exclusively of unit trusts (note 9.2.).
At 31 December 2022, the Group held 118,227,307 Sanofi shares for an amount of €10,621.5 million (note 9.3.).
The initial share price for Sanofi shares was €34.12.
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 2021, the Group held 118,227,307 Sanofi shares for an amount of €10,472.6 million (note 9.3.).
At 31 December 2020, the Group held 118,227,307 Sanofi shares for an amount of €9,304.5 million (note 9.3.).
IFRS 7 requires financial assets and liabilities recognised at fair value in the balance sheet to be classified according to three levels:
The table below provides an analysis of financial instruments recorded at fair value on the balance sheet by level of the fair value hierarchy.
|
€ millions 31 December 2022 |
Level 1 | Level 2 | Level 3 | Total fair value |
|---|---|---|---|---|
| Assets at fair value | Assets at fair valueLevel 1
|
Assets at fair valueLevel 2
|
Assets at fair valueLevel 3
|
Assets at fair valueTotal fair value
|
| Foreign exchange derivatives | Foreign exchange derivatives Level 1— |
Foreign exchange derivatives Level 2260.9 |
Foreign exchange derivatives Level 3— |
Foreign exchange derivatives Total fair value260.9 |
| Sanofi shares | Sanofi shares Level 110,621.5 |
Sanofi shares Level 2— |
Sanofi shares Level 3— |
Sanofi shares Total fair value10,621.5 |
| Other securities | Other securities Level 199.7 |
Other securities Level 2— |
Other securities Level 3391.6 |
Other securities Total fair value491.3 |
| Marketable securities | Marketable securities Level 1718.5 |
Marketable securities Level 2— |
Marketable securities Level 3— |
Marketable securities Total fair value718.5 |
| TOTAL ASSETS AT FAIR VALUE | TOTAL ASSETS AT FAIR VALUELevel 111,439.7 | TOTAL ASSETS AT FAIR VALUELevel 2260.9 | TOTAL ASSETS AT FAIR VALUELevel 3391.6 | TOTAL ASSETS AT FAIR VALUETotal fair value12,092.2 |
| Liabilities at fair value | Liabilities at fair valueLevel 1
|
Liabilities at fair valueLevel 2
|
Liabilities at fair valueLevel 3
|
Liabilities at fair valueTotal fair value
|
| Foreign exchange derivatives | Foreign exchange derivatives Level 1— |
Foreign exchange derivatives Level 2170.6 |
Foreign exchange derivatives Level 3— |
Foreign exchange derivatives Total fair value170.6 |
| TOTAL LIABILITIES AT FAIR VALUE | TOTAL LIABILITIES AT FAIR VALUELevel 1— | TOTAL LIABILITIES AT FAIR VALUELevel 2170.6 | TOTAL LIABILITIES AT FAIR VALUELevel 3— | TOTAL LIABILITIES AT FAIR VALUETotal fair value170.6 |
|
€ millions 31 December 2021 |
Level 1 | Level 2 | Level 3 | Total fair value |
|---|---|---|---|---|
| Assets at fair value | Assets at fair valueLevel 1
|
Assets at fair valueLevel 2
|
Assets at fair valueLevel 3
|
Assets at fair valueTotal fair value
|
| Foreign exchange derivatives | Foreign exchange derivatives Level 1
|
Foreign exchange derivatives Level 267.6 |
Foreign exchange derivatives Level 3
|
Foreign exchange derivatives Total fair value67.6 |
| Sanofi shares | Sanofi shares Level 110,472.6 |
Sanofi shares Level 2
|
Sanofi shares Level 3
|
Sanofi shares Total fair value10,472.6 |
| Other securities | Other securities Level 134.5 |
Other securities Level 2
|
Other securities Level 3276.9 |
Other securities Total fair value311.4 |
| Marketable securities | Marketable securities Level 1— |
Marketable securities Level 2
|
Marketable securities Level 3
|
Marketable securities Total fair value— |
| TOTAL ASSETS AT FAIR VALUE | TOTAL ASSETS AT FAIR VALUELevel 110,507.1 | TOTAL ASSETS AT FAIR VALUELevel 267.6 | TOTAL ASSETS AT FAIR VALUELevel 3276.9 | TOTAL ASSETS AT FAIR VALUETotal fair value10,851.6 |
| Liabilities at fair value | Liabilities at fair valueLevel 1
|
Liabilities at fair valueLevel 2
|
Liabilities at fair valueLevel 3
|
Liabilities at fair valueTotal fair value
|
| Foreign exchange derivatives | Foreign exchange derivatives Level 1
|
Foreign exchange derivatives Level 2240.4 |
Foreign exchange derivatives Level 3
|
Foreign exchange derivatives Total fair value240.4 |
| TOTAL LIABILITIES AT FAIR VALUE | TOTAL LIABILITIES AT FAIR VALUELevel 1— | TOTAL LIABILITIES AT FAIR VALUELevel 2240.4 | TOTAL LIABILITIES AT FAIR VALUELevel 3— | TOTAL LIABILITIES AT FAIR VALUETotal fair value240.4 |
