in three areas
WITH | AROUND | BEYOND |
TIRES | TIRES | TIRES |
in sales, | & measured by ROCE ● EBITDA growth |
organic and | |
M&A-driven | incl. M&A |
● Around and Beyond tires: | |
crystallization of the value |
Features vs. tires:
- Higher Market growth
- Stronger EBIT %
- Lower capital intensity
Roadshow USA West Coast - January 4, 2023
Products and solutions serving all mobilities ...
… while leveraging our expertise in high-tech |
materials … |
- Cyclicality : very low
- Main drivers : miles driven, GDP, used cars market
Volumes and mix drivers :
- Increase to car access of the worldwide population
- Increase of vehicles weight requiring higher rim size tires
- First cycle of EV soon visible on RT
- Cyclicality : low
- Main drivers : GDP & PMI
Volumes and mix drivers :
- Demand for goods and increase of local-to-local supply chains models
- Boom of e-commerce and last mile delivery
- Urbanization of population
• Cyclicality : low |
• Main drivers : GDP, PMI, R&D & | BEYOND |
TIRES | |
public spending | |
Volumes and mix drivers :
- Customer's needs for increasingly demanding applications in many types of industries (energy, medical, aerospace…)
- Emerging value chains (Fuel Cell, 3D Printing…) shaping the industry's future
- Growing appetence for sustainable materials, recycling and circular economy
- Cyclicality : very high
- Main drivers : regulation & GDP
• | Cyclicality : high |
• | Main drivers : GDP, public |
spending, commodity prices, |
… with a global and balanced footprint
% of Group Sales by Region, 2021
Volumes and mix drivers :
- Increase of vehicles size requiring higher rim size tires
- Easing of supply constraints of components and semi-conductors
- EV boom: massive renewal of cars fleets
Roadshow USA West Coast - January 4, 2023
housing and building construction |
Volumes and mix drivers :
- Mining: increasing demand for minerals to fuel transition to renewables energies and digital transformation
- Agriculture: growing worldwide population, increase of farmers' investment capacities
- Construction: adaptation of infrastructure and building/housing to meet energy transition requirements
35%
(1) % of Group sales, 2021
- Replacement
- Original equipment
38%
27%
Free cash flow* and SOI evolution vs change in volumes sold
2,692 | 2,742 | 2,775 | 3,009 | 2,966 | ||||||||||
2,478 | 2,577 | |||||||||||||
13% | ||||||||||||||
2,234 | 2,170 | |||||||||||||
1,945 | 1,878 | 12% | ||||||||||||
1,615 | ||||||||||||||
1,645 | 1,507 | 1,751 | 1,509 | |||||||||||
7% | 1,274 | 2,010 | ||||||||||||
920 | 961 | 1,793 | ||||||||||||
3% | 862 | 599 | 749 | 717 | 833 | |||||||||
426 | 517 | |||||||||||||
433 | 3% | 2% | 3% | |||||||||||
-359 | 0% | 1% | 1% | -1% | ||||||||||
-3% | ||||||||||||||
-6% | ||||||||||||||
-15% | -14% | |||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
Free cash flow* (€m) | SOI (€m) | Change in volumes (%) | ||||||||||||
*Free cash flow as reported from 2007 to 2010, structural free cash flow from 2011 (see slide 55 for the definition of structural free cash flow) |
Roadshow USA West Coast - January 4, 2023
BEV: HIGHLY DEMANDING VEHICLES PERFECTLY FIT WITH MICHELIN UNIQUE KNOW-HOW
Key challenges related to BEV
Range
Cockpit noise
Regenerative braking & Torque
Battery weight
Tight space
Key requirements for Tires
Low rolling resistance
Silent architecture
Low abrasion rate & good grip
High rim size
High load capacity
MICHELIN: best combination of performances
"Low tire abrasion rate and safe driving characteristics: Michelin shows how [tires should be] done" *
* source: ADAC, Dec 2021 - Download the ADAC study
STEEP INCREASE OF GROUP SALES TO BEV
Share of tires sales to BEV, in % of total OE sales
+30%
H1 2021 | H1 2022 |
MICHELIN PREFERRED TIRE MAKER FOR LEADING EV OEMS
United | |||
States | China | ||
Europe | |||
TESLA
Roadshow USA West Coast - January 4, 2023
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Compagnie Générale des établissements Michelin SA published this content on 04 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 January 2023 10:37:06 UTC.