OUR SANOFI MANUFACTURING SYSTEM

I. INTRODUCTION
As a worldwide and diversified healthcare leader, we need to
continuously adapt our manufacturing capacities and capabilities so
we can deliver our wide portfolio of medicines and next generation
treatments to healthcare professionals and the patients who need them.
Getting prepared for a successful future demands cutting-edge
manufacturing, robust organization and processes, new skills and new
ways of thinking. Continuous problem-solving skills, data driven
mindset and agility are key capabilities needed to deliver our Play To
Win strategy.
To meet these challenges, Sanofi Industrial Affairs build a unique
manufacturing system leveraging Lean and digital, called the Sanofi Manufacturing
System, reflecting the company’s mindset, culture, and industrial heritage.

Introduced 10 years ago already, the Sanofi Manufacturing System evolved constantly and is
moving towards Sanofi Smart Factory. Supporting our search for excellence, SMS integrates an
ambitious upskilling program to embark all our employees in this digital transformation.

According to Philippe Luscan, Executive Vice President of Global Industrial Affairs:

“The Sanofi Manufacturing System ensures that we

deliver the best solutions to meet patient needs and
by doing so, contribute to our company’s growthand
success.”

II. FUNDAMENTALS AND MAIN PRINCIPLES

The Sanofi Manufacturing System is based on
three pillars: our industrial culture, our ways of
working, and our operating system,
underpinned by performance – all connected
to our everyday business and contributing to
the delivery of the best-in-class operational
performance that our patients expect and
deserve.
Setting the Scene: Developing our People
• The ecosystem created by the Sanofi Manufacturing System focuses on supporting people through training,
coaching and professional development tocontinuously improve industrial processes, eliminate waste (muda)
and foster a culture of empowerment and sustainable problem-solving driven by Data.
• Strong personal involvement and greater autonomy through teamwork support innovation and best practice
sharing across our manufacturing network
• Manufacturing excellence is based on a framework of standardized methodologies, tools and best practices
bridging to Factory 4.0.
• Standardization allows us to speak the same language across the Sanofi network and it ensures that our ways of
working are simpler, more robust and more effective.
• Consequently, our industrial network is continuously innovating and transforming to ensure agility, higher
productivity as well as sustainable manufacturing thanks to digitalization.

In order to accelerate the deployment of Sanofi Manufacturing

System standards, we have also developed our own global
transformation programfor Industrial Affairs, called Fit4Future.
The comprehensive transformation approach is deployed in a
given plant of the Sanofi network over an 18-month timeframe
and it is designed to boost site performance to achieve best-in-
class operational excellence and competitiveness. Multiple
rapid improvement initiatives, called ‘boosters,’ roll out in waves to
transform processes quickly, revisit organizational models and
thereby drive our collective performance. Fit4Future ensures the
consistent application of the Sanofi Manufacturing System
methodologies and standards, while encouraging a sustainable
shift in mindset. Since the majority of the network already went
through the comprehensive transformation, but our performance
ambitions remain high, the methodology is being adapted, to be
focused on narrower topics (requiring a more specific expertise),
leveraging the power of digital tools, to be able to help the Sanofi sites to go from good to great.
As much as delivering operational excellence, Fit4Future has proved to be a great opportunity to detect new talent
across Sanofi teams. It has allowed new Sanofi Manufacturing System standards to emerge(value stream board,
daily capacity management and standard agendas) and anchored a sustainable cultureof coaching, problem-
solving and team empowerment.There is now more fluid information-sharing across plant teams and all levels of
management.
In each participating site, Sanofi Change Teams lead the transformation. To date,more than 1.000 Change Leaders
have already been trained on the Fit4Future methodology and behaviors. Change Leaders support site teams to
apply new ways of working and Sanofi Manufacturing System core standards, with an emphasis on shifting mindsets
to improve performance. The Change Leader role provides a great professional development opportunity with
exposure to innovative ways of working and different technologies, as part of transversal international teams.

Ways of Working
The Sanofi Manufacturing System leverages a variety of techniques to achieve daily industrial manufacturing
excellence including Gemba problem solving (GPS), Performance Monitoring using + QDCI meetings (focusing on
safety, quality, delivery, cost and involvement), governance and visual management using Strategic Cascading
and Obeya, and value stream mapping.
Our standards have a strong Lean foundation leveraging digital products to facilitate ideation.
Beyond standards we set up efficient operating models. Autonomous Production Units (APUs) have been created to
bring people together from different functions with the aim of achieving higher performance and efficiency. They
are organized around a common customer focus (product family or process), common operational goals,
and sharing a common workspace (obeya or iobeya room). 20 Sites are working today in APU mode.
Focused on solving a clearly defined issue (with a wide scope of applications: supply chain, quality, finance,
Environment, Health and Safety [EHS]), Sanofi Manufacturing System workshops have represented a key vehicle for
our continuous improvement model and involve a strong multi-disciplinary teams. They typically include a
preparation phase, 3 to 5 days of intensive work, regular follow-up meetings, a final workshop and the
communication of achievements and successes. Workshops can be organized at site level or pull together teams
from several sites to cross-fertilize expertise and experience.
Culture
Performance is the heart of our model, aiming to stretch beyond the level we operate every day. As our ambition is
to be best in class, we develop our employees to prepare themselves and their sites to the deep mindset shift towards
Factory of the Future.
One of our key drivers is the community of practices of more than 2000 employees. Their goal is to foster a full
understanding of the Sanofi Manufacturing System mindset and objectives, allowing each site, division or function
to design their own Sanofi Manufacturing System roadmap, a 3-year performance plan leveraging targeted Sanofi
Manufacturing System solutions.

New Upskilling Program aiming to prepare the jobs of the Future.

Employees’ development is part of our DNA.
The Sanofi Manufacturing System Academy organizes workshops and training sessions, rolling out Sanofi
Manufacturing System principles, attitudes, tools and working methods across Industrial Affairs. The Academy
curriculum also encourages collective intelligence, a mindset for continuous improvement and enables people to
grow by sharing experiences and ideas.
Since 2014, more than 10 000 employees took benefit from the SMS upskilling offer through various adapted formats
(face to face, e-learning, webinars, …). Always enriched to develop and reinforce new capabilities, the SMS
Academy developed new curriculum on manufacturing excellence, data analytics, data and core processes
management, data driven and problem-solving capabilities flow improvement, IoT and Automation.
Our training model is based on the principle of internal cascading with more than 250 volunteer trainees being
coached and supported to become future trainers. This self- sustaining model is one of the key strengths of the Sanofi
Manufacturing System Academy, helping people to master the content of the training programs while developing
their soft skills as trainers. It is designed on the 70/20/10 model
• 70% on the job learning, via workshops, boosters, problem solving sessions, projects.
• 20% of coaching and co-development via our SMS & Digital community of practices, and our on-line
collaborative platform
• 10% of formal training, within our Industrial Affairs Academy

Sanofi Manufacturing System Certification Program

An ambitious skills certification program with four levels was launched in 2017 to acknowledge every employee’s
command of the Sanofi Manufacturing System. The formalized scheme involves structured learning and on the job
implementation. Each level has clear and objective criteria that have to be met for an individual to be upgraded
from one level to the next: Practitioner, Intermediate, Advanced and Champion. By the end of 2020, ~2,000 Sanofi
Employees had alreadyreceived a certification acknowledging their Sanofi Manufacturing System skills.

Operating System
For several years, Sanofi has been digitally transforming its entire industrial network through the Factory 4.0 program.
This digitalization is now the primary lever for operational excellence. The interoperability acquired in this way and
the use of artificial intelligence make it now possible to transform data into insights, break down silos, and adopt a
predictive approach to essential processes. This transformation is only possible thanks to the continuous support of
Sanofi employees in acquiring the new skills essential to what can now be called the Sanofi Smart Factory.

A first wave of initiatives called Factory 4.0, was deployed though pilots’ sites called “lighthouses”, bringing
breakthrough performance improvement to key operational KPIs such as Plant Cycle Time, Asset Performance (OEE),
Deviations per Batch and industrialization effectiveness.
The Factory 4.0 solutions are already proven in multiple sites with operational impact and we have successfully
demonstrated our ability to accelerate both roll-out and performance improvement. A key driver is bringing all
relevant data together to help people make the right decisions at the right time. A key illustration of this is the Factory
Control Tower (FaCT) which enables plants to better manage production flow and reduce plant cycle time. FaCT is
in final stages of roll-out across the value chain of our priority products such as Dupixent and Insulins.

A second wave is starting now, with new initiatives called Quality 4.0 & Engineering 4.0. They will open new
opportunities, end to end across both the supply chain and new product introduction lifecycles.
Measuring our Performance
Monitoring performance is essential for success.
Performance starts with Gemba: on a daily basis, more
than 5,000 teams gather in front of the +QDCI boards to
discuss and exchange opportunities for improvements
and problem solving – from shop floor level up to the
Plant Leadership Teams.
The results are monitored at different level of the
organization, consolidated transversally via Advanced
Analytics and available on Mobile (SMS Digital CockPit)
Instrumental in supporting budget processes, several
tools (3P, ACT4 etc) are used for evaluating relevant
activities in the Sanofi Manufacturing System roadmaps
and prioritizing projects based on a value-driven
approach.

Sanofi Manufacturing Factsheet – May 2021