Michelin CGDE : Présentation des résultats du 3ème trimestre 2023 (anglais seulement)

October 24, 2023

2

EXECUTIVESUMMARY

Nine-month sales up 2% to €21.2 billion despite soft volumes and a forex headwind,

supported by mix enhancement, non-tire activities and brand leadership

• 9-month2023 sell-in markets shaped by inventory drawdowns in Europe and North America
• • PC/LT tire markets stable vs. 2022 : robust OE demand in most regions offset slightly negative RT demand dampened by destocking in Europe and the Americas. Demand for 18-inch and larger tires is steadily expanding. Inventory levels are back to normal in most regions except for winter tires in Europe.
  • Truck tire markets outside China dropped 5% due to substantial dealer and B2B fleet inventory reductions. OE demand still robust in Europe and North America. On Replacement markets, destocking expected to be completed by the end of the year.
  • Specialty tire markets dynamic in Mining, Aircraft and OE Agricultural tires, and soft in Construction, RT Agricultural and Two-wheel tires.
  • Non-tiremarkets up in most segments (fleet services, mining, energy), stable in general industrial applications.
• 9-monthsales up 2.0% to €21.2 billion, supported by mix enhancement, non-tire activities and the valorization of our offers. Q3 sales stable excluding the currency effect
• • Tire sales volumes down 3.6%, reflecting market destocking and Group's priority focus on value-accretive segments.
  • Price effect stood at 6.2%, confirming the recognized value of our products and solutions, and the impact of price indexation clauses from 2022.
  • Mix effect reached 1.0%, reflecting growth in the 18-inch and larger Passenger car tire segment and a favorable geo-mix, partially offset by an adverse OE/RT mix across businesses.
  • Non-tiresales up 13% at constant exchange rates, sustainably fueling Group's growth.
  • Negative currency effect reached 2.6% year-to-date, of which -5.5% in Q3
• Growth in polymer composite solutions accelerating with the end-September closing of the FCG acquisition, will drive higher Group sales from Q4 onwards
• 2023 guidance: segment operating income confirmed (> €3.4bn at constant exchange rates), FCF before acquisitions (1) revised upwards (> €2.3bn)
• 1. Definition: see slide 69

Q3 2023 Sales - October 24, 2023

3 Sell-in markets: above the expected range in PC/LT and below in Truck

RESULTS

YTD 2023	YTD 2023
vs. 2022	vs. 2022

0% -5%

Jan

Feb Mar

Apr May Jun

Jul

Aug Sept Oct

Nov Dec

Jan Feb Mar Apr May Jun

Jul Aug Sept Oct Nov Dec

20232022

Projection presented during the H1 release

Q3 2023 Sales - October 24, 2023

4

RESULTS

9-month Group sales up 2.0% to €21.2bn despite weak volumes Non-tire sales grew by 13% or €134m

(in € millions and as a % of 9M 2022)

+2.0%

			+1,504	+134	21,697
					Non-tire		21,152
					businesses
					(+0.6%)		-545
20,732	+79
						Currency
	Scope (1)					(-2.6%)
	(+0.4%)
	-752	Price-mix
	(+7.2%
	Volumes
	o/w price
	(-3.6%)
	+6.2%)
		Tire business
9M 2022				9M 2023	9M 2023
						at constant FX	at current FX

(1) Consolidation of CPS (Conveyor Products & Solutions) effective July 14, 2022, EGC Enterprises (high performance polymers) effective Feb. 3, 2023, Blacksmith effective Apr. 1, 2023.

Q3 2023 Sales - October 24, 2023

5

Q3 Group sales dragged down by FX to €7.1bn, price-mix steering remains solid Non-tire sales grew by 6% or €23m

RESULTS

(in € millions and as a % of Q3 2022)

7,443 +25

Scope (1)

(+0.3%)

Q3 2022

				-5.0%
		+250	+23	7,486
				Non-tire
				businesses
				(+0.3%)		7,073
-255	Price-mix
Volumes	(+3.3%			-413
o/w price
(-3.4%)
+2.1%)
				Currency
						(-5.5%)
	Tire business
		Q3 2023	Q3 2023
					at constant FX	at current FX

(1) Consolidation of CPS (Conveyor Products & Solutions) effective July 14, 2022; EGC Enterprises (high performance polymers) effective Feb. 3, 2023; Blacksmith effective Apr. 1, 2023.

Q3 2023 Sales - October 24, 2023

6

Automotive and Specialties segments delivering strong performance, Road transportation facing low volumes on decreasing markets

RESULTS

(in € millions)

Sales	10,611
o/w volume change	-

Sales	5,173
-
o/w volume change

Sales	5,368
o/w volume change	-

Sales	21,152
o/w volume change	-

10,238

-

5,403

-

5,091

-

20,732

-

+3.6%

-1%

-4.3%

-7%

+5.4%

-2%

+2.0%

-3.6%

Sales growth driven by embedded price effect and sustained product mix enrichment, more than offsetting volume effect of Distribution's destocking. Market share gain in growing 18''+ segment, now accounting for 60% of MICHELIN-branded tire sales in 9M 23, up 5 points vs 9M 22.

Sales penalized by low volumes mainly from Replacement heavily impacted by destocking in Distribution, and unfavorable OE/RT mix.

Positive embedded price effect. Double-digit growth in services to fleets.

Sales growth driven by embedded price effect and dynamic Aircraft and Mining activities. Unfavorable comparison basis in Mining in H2 due to record-high performance in H2 2022.

Beyond Road activities focusing on value-creative segments, weighing on volumes but improving margins. High-tech materials sales up 13%.

Q3 2023 Sales - October 24, 2023

7

RESULTS

Strengthening leadership in high-value and increasingly demanding market segments

+12%

CAGR*

19'' > 18''

by 2025

Market trend in > 18'' tires

>18'' segment, share of

MICHELIN brand sales (%)

>100m€

Sustainable mix impact

on EBIT, per year

2023

Launch of the

for the

world's largest

loader

AG TRACKS	HIGH POWER
	TRACTORS

Americas

Europe

South East Asia

Priority to MICHELIN brand in the most profitable regions

* 2023 - 2028

Premium	Tech	Green
quality	oriented	conscious

3 premium segments = 50% of market

value

*
Michelin strong	CAGR* + 1 pt vs
market share	average AG

Q3 2023 Sales - October 24, 2023

8

RESULTS

Michelin tires' undisputed technological leadership, reiterated by 2023 test results

Unrivaled on snow, dry, and sustainability performance

Test winner	Test winner	Test winner	Test winner
1/35	1/12	1/10	1/10

Leading the high-performance winter tyre segment

with undisputed snow and dry performance levels

Test winner	Test winner	Test winner
1/54	1/10	1/10

AUTO BILD	AUTO BILD	AUTO BILD	TYRE REVIEWS	AUTO BILD	AUTO BILD	TYRE REVIEWS
225/45 R17	235/55 R17	235/55 R17	235/55 R17	225/45 R18	225/40 R R18	235/55 R17

Q3 2023 Sales - October 24, 2023

9

RESULTS

Electrification opportunity : differentiating with premium OEM segments, ready for attractive Replacement markets

"Low tire abrasion and safe driving characteristics: Michelin shows how [tires

should be] done"

(ADAC study, Dec 2021)

All Michelin tires already meeting EV requirements

Strong

loyalty rate

Specific

value

positioning

> 10

+28%

Number of BEV models

with Michelin fitment, 2023 vs 22

X2.5

BEV PREMIUM * VS OE TOTAL

Michelin OE market share

* Luxury-Premium & Sport-Passion segments

million tires

> 5
million tires					2026
						2028

Substantial Replacement sales

from 2026 onwards

Q3 2023 Sales - October 24, 2023

10

RESULTS

FCG closing: first step towards Michelin 2030 ambition to become a key player in polymer composite solutions

• Unlocking deep-innovation synergies in composite fabrics & films
• Strong growth prospects through multiple dynamic end-markets

Composite Fabrics

and Films

Business Line

~€50m

Net Sales

€2m/year

Synergies already realized from refinancing of FCG debt

~€12m

EBIT

Synergies

on insurance contracts

First cross-selling

synergies

€700m

Cash out *

* included in FCF after M&A

Q3 2023 Sales - October 24, 2023