These amounts are allocated to the appropriate operating expense items. They are broken down as follows:
| € millions | 2023 | 2022 | 2021 |
|---|---|---|---|
| Cost of sales | Cost of sales 2023-49.2 |
Cost of sales 2022-324.2 |
Cost of sales 2021-37.2 |
| Research and innovation expenses | Research and innovation expenses 2023-12.0 |
Research and innovation expenses 202229.6 |
Research and innovation expenses 2021-4.2 |
| Advertising and promotion expenses | Advertising and promotion expenses 2023-8.7 |
Advertising and promotion expenses 2022-61.5 |
Advertising and promotion expenses 2021-5.9 |
| Selling, general and administrative expenses | Selling, general and administrative expenses 2023-10.7 |
Selling, general and administrative expenses 2022-58.7 |
Selling, general and administrative expenses 2021-5.5 |
| FOREIGN EXCHANGE GAINS AND LOSSES | FOREIGN EXCHANGE GAINS AND LOSSES2023-80.6 | FOREIGN EXCHANGE GAINS AND LOSSES2022-414.7 | FOREIGN EXCHANGE GAINS AND LOSSES2021-52.8 |
The Group did not have any interest rate hedging instruments at 31 December 2023, 2022 and 2021.
An increase of 100 basis points in interest rates would have had a direct positive impact of €34.7 million on the Group’s net finance costs at 31 December 2023, compared with a direct positive impact of €9.8 million at 31 December 2022 and a direct negative impact of €18.2 million at 31 December 2021. This calculation allows for cash, cash equivalents and derivatives, and assumes that total net debt/cash remains stable and that fixed rate debt at maturity is replaced by floating rate debt.
The impact of a 100 basis point rise in interest rates on the fair value of the Group’s fixed-rate financial assets and liabilities, after allowing for any interest rate derivatives, can be estimated at €60.2 million at 31 December 2023 compared with €23.9 million at 31 December 2022 and €1.0 million 31 December 2021.
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 counterparty 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 2023. 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 2023, marketable securities consist exclusively of unit trusts (note 9.2.).
At 31 December 2023, the Group held 118,227,307 Sanofi shares for an amount of €10,612.1 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 2022, the Group held 118,227,307 Sanofi shares for an amount of €10,621.5 million (note 9.3.).
At 31 December 2021, the Group held 118,227,307 Sanofi shares for an amount of €10,472.6 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:
