Calibration Guidance for Managers December 2016 SANOFI| ratings distribution @ Validation of pre-ratings with hierarchy and Performance calibration is an important step to ensure objectivity and fairness © If calibration at the level of N+2 to the employee is managed well, there should be minimal need for intervention from Global leaders SANOFI a€¢ Ratings distribution cont..... e A fundamental principle of the P&R process is the expectation that managers differentiate their ratings decisions based upon individual performances relative to: The expectations set (What & How) and the performance of other employees @ In instances where a site/function/team is large enough for a ‘normal’ distribution curve to occur (50+ people) and yet the distribution of ratings appears unbalanced, the activity leaders may wish to explore or challenge the rationale and overall distribution SANOFI 9 -