Michelin CGDE : 2022 3rd Quarter and 9 Months Sales Presentation

• In a market environment shaped by continuing operational disruptions, widespread inflation and limited visibility as to future demand, Michelin delivered growth in sales and is steering operations to ensure adequate inventory levels.
• 9-monthmarkets remained on an upward trend:
• • End-user(sell-out) demand held firm in most regions and markets.
  • Passenger Car & Light Truck sell-in markets grew by 1.4%, lifted by a third-quarter recovery in Original Equipment (OE) demand, mainly in North America and China; Replacement markets remained stable, with a mix temporarily impacted by rising imports from Asia.
  • Truck tire sell-in markets -excluding China- expanded by 6.0% with an acceleration in the third quarter.
  • Specialty tire markets remained robust in all segments except Agricultural and Construction in the third quarter; demand remains strong in Mining.
• Consolidated 9-month sales of €20.7bn, up 20.5% year-on-year, including 6.5% positive currency effect:
• • a 13.4% gain from price increases, reflecting the Group's policy of systematically passing on cost inflation factors and the growing impact of price indexation clauses.
  • a 0.9% increase from the mix effect reflecting growth in the Passenger Car 18-inch and larger segment and in Mining, partially offset by an adverse OE/RT mix effect in the Automotive business.
  • a 2.4% decline in volumes, mostly due to the exit from Russia and lockdowns in Chinese cities, amid persistent operational disruptions.
  • a 1.0% gain from changes in scope, mainly reflecting the consolidation of Allopneus.com.
  • Non-tiresales grew by 22% accounting for 1.1% of consolidated sales growth, demonstrating the validity of the ongoing Michelin in Motion Group strategy.
• 2022 full-year guidance:
• • Segment operating income at constant exchange rates : confirmed > €3.2bn
  • Structural free cash flow : adjusted to ~ €700M

Q3 2022 Sales - October 25, 2022

Global Passenger car/Light truck tire market		Truck tire market (excluding China)
(expressed in units)		(expressed in units)

2021		2022	2022 projection
	presented in H1

2021		2022	2022 projection
	presented in H1

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Jan

Feb

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Apr

May

Jun

Jul

Aug

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Oct

Nov

Dec

Source: Michelin. Market data are regularly adjusted and may be updated following their initial publication.

Q3 2022 Sales - October 25, 2022

Analysis of 9-month sales

(in € millions and as a %)

				+14.0%
						1,116	20,732
				2,459	185	19,616
					Non-tire	Currency
					(+6.5%)
					businesses
17,204	176
			(+1.1%)
	Scope*	-	408
	(+1.0%)	Volumes	Price-mix
		(+14.3% o/w
		(-2.4%)
		price +13.4%)
9M 2021						9M 2022	9M 2022
						at constant
						exchange rates

• Deconsolidation of the printing, publishing and marketing businesses associated with Maps & Guides for France (Michelin Editions) on February 1, 2021, and of Solesis on May 28, 2021; consolidation of TechnoBalt on May 1, 2021, and Allopneus.com on December 30, 2021.

Q3 2022 Sales - October 25, 2022

(in € millions)	9M 2022	9M 2021	Change
RS1 sales	10,238	8,603	+19.0%
Volumes	-	-	-4.0%
RS2 sales	5,403	4,503	+20.0%
Volumes	-	-	-0.5%
RS3 sales	5,091	4,098	+24.2%
Volumes	-	-	-1.2%

In an environment shaped by strong inflation and ongoing operational disruptions:

• RS1: sales lifted by price increases introduced in Replacement in H1 and the impact of indexation clauses from July 1; positive mix supported by sustained growth in 18-inch and larger tires and favorable geo mix, despite a negative OE/RT mix; volumes decrease reflects the exit from Russia and weak demand from China in Q2, as well as the impact of the high volatility of the sell-in market mix in Q3.
• RS2: sales growth supported by dynamic pricing management and continued expansion in fleet management solutions; volumes stable on the back of high volatility in the sell-in market mix in Q3 and a continued focus on the highest value market segments.
• RS3: sales rose thanks to positive price effect, reflecting the price adjustments on July 1 in application of indexation clauses, and rebound in Mining volumes in Q3 as expected; sales in Non-tire businesses grew by 22% over the first nine months at constant exchange rates.

Q3 2022 Sales - October 25, 2022