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2021
PC/LT: +23% TRUCK: +27% SPECIALITIES*: +8 à +12%
2020 2021 2021 2020 2021 2021 * estimated full-year market growth in 2021
vs 2019 vs 2019
+41
+29 +30
+78
+11
-5 -12 -22 -46 +3 +3 +26 -4 -11 -22 -20 -24
3
Jan Jan Feb Mar Apr Jan Feb Mar Apr YTD
Feb YTD Jan
Mar Feb Mar
Apr
Apr
+68
+178 +14 12
-5 -2 -18 -60 +4 +26 1 -3 -3 -8 -27 +6 +23
-7
Jan Feb Jan Feb Mar Apr YTD Jan Feb Jan Feb Mar Apr YTD
Mar
Mar Apr
Apr
+162 +272
+26 +28
-17 -69 -36 -8 +50 -3 +51 -3 13
-6 -18 -60 -26 +4
Jan Feb Mar Apr Apr Jan Feb Mar Apr YTD
Apr
Jan YTD Jan
Mar
Mar
Feb Feb
Source: Michelin. Tire market data are regularly adjusted and may be updated following their initial publication
* Including Central America for OE
+8.3%
+45 0 5,769
+402
Non-tire businesses
Price-mix
(0.0%) -321
(+0.9%)
o/w mix +0.6% 5,448
● RS1: despite the adverse price impact of indexation clauses, sales rose over the period, lifted by the sharp increase in
volumes and the steady upmarket enhancement in the product mix.
● RS2: sales gains reflected robust volume growth in every Group market, disciplined price management and the Michelin
brand-driven upmarket shift in the product mix.
● RS3: a favorable price effect and strong volume growth offset a negative business mix.
● OE: strong recovery expected ● OE: strong rebound in H1 ● Mining: demand recovery
driven by inventory build up and demand in every region which penalized by a slowdown in coal
incentives, but threatened by should attenuate in H2 due to extraction
chips shortage tougher comps ● Beyond road: acceleration in
● RT: despite remaining uncertainty ● RT: strong rebound in demand demand recovery boosted by
around pandemic impacts, driven by freight activity in every upcycle trend
rebounding demand worldwide, region
● Two-wheel: sustained growth
not yet coming back to pre crisis
level ● Aircraft: growing demand on
very low basis
* vs. 2020
Cost impact of raw materials prices and customs duties Strongly Negative
* See slide 42
* Restrictions on freedom of movement that would result in a significant drop in the tire markets, or any significant supply chain disruption.
** Structural Free Cash Flow definition on slide 73
UNIQUE CAPABILITIES
Through our unique capabilities…
FINANCIAL
VALUE
CREATION • Value creation with ROCE at >+10.5% at Group level 2019 2023 2030
• Significant improvement in tire margins
Tires Non-Tires
2019 2020 2023 2019 2020 2023 2019 ∑ 2020- 2022- 2019 2020 2023
Target Target 2021 2023 Target
Cost ~€6.3bn cumul. Net working capital
Exiting the structural FCF
competitiveness and improvement and EBIT
crisis over 4 years
price mix growth
€100m inventory
Spain Roadshow - June 11, 2021 * At constant forex based on Jan 21 average forex reduction / year
KEY HIGHLIGHTS CAPEX* AND JVs FINANCING VS. DEPRECIATION
(in € billion)
• Reducing CAPEX on core-business towards
2.5
depreciation level
− Marginal low-cost investments first
2.0
− MICHELIN brand focused
− Optimized maintenance CAPEX & molds
• Reinforcing Michelin footprint where the growth is 1.5
• Value-accretive acquisitions
47%
50%
41%
37% 37% 36% 36%
20%
2
5
4 3
People Be a reference in diversities and inclusion of teams IMDI 80 points over 100
+10 and +5 pts
Be best-in-class in value created for customers NPS partners and NPS final customers
respectively
Profit Maintain Michelin brand power Brand vitality quotient +5 pts vs 2021
Maintain best-in-class innovation pace in products and
Offers vitality index >30%
services
Reach carbon neutrality by 2050 (manuf. and energy) CO2 emissions scopes 1&2 (50%) vs. 2010
Contribute to reaching carbon neutrality (usage) Products energy efficiency (scope 3) +10% vs. 2020
Be best-in-class in environmental footprint of
Planet i-MEP -1/3 vs. 2020
industrial sites
TCIR = Total Case Incident Rate ; IMDI = Inclusion and Diversities Management Index; NPS = Net Promoter Score ; ROCE = Return on Capital
Employed ; i-MEP = industrial Michelin Environmental Performance
Spain Roadshow - June 11, 2021
WITH
TIRES
CUSTOMER PREFERENCES
E-commerce and
Health and safety Environmental awareness
last-mile delivery
Opportunities
for the tire industry
REGULATIONS
• Longer-lasting sustainable
Protectionism Regulatory pressure CO2 emissions targets
products
• Manufacturing 4.0
INDUSTRIAL SET-UP
Qualified workforce and digitally
Disrupted supply chain Local-to-local footprint
enabled workplace
8.5
in global population between 2020 and 2020-2030E CAGR 13.2
2030 12.0
8.2 11.3
9.8
7.9
7.8
INCREASING URBANIZATION AND GLOBAL WEALTH TIRE MARKET MID-TERM GROWTH POTENTIAL
2050
+2% to +4% per year in emerging markets
World ~+2%
GDP increase
Urbanisation rate
/year until 2030
Sources: Michelin estimates, United Nations – 2018 Revision of World Urbanization Prospects
Spain Roadshow - June 11, 2021
PASSENGER CAR MARKETS TREND PASSENGER CAR MARKET BY RIM DIAMETER
Original Equipment World Market (unit) Original Equipment + Replacement Market by Diameter (unit)
102
Base=100 2019-23E CAGR
83 98 169
93 2019-23E CAGR
19" and +
Significant increase in 19”+ Cost optimization and Strong and sustained mix enrichment
tires demand simplification of Michelin’s catalog
3x more SKUs 19” by 2025 Late differentiation in the
production process
100
98 Rolling resistance
Sustainable
Solutions to improve Long-lasting tires
transportation
environmental footprint Retreading
acceleration
Michelin Green Mobility
93
MICHELIN MICHELIN
XDR – 63” CEREXBIB 2 ON-SITE INSPECTION
AND MAINTENANCE RECYCLING
million / year
million / year
in SG&A Tires
Medical
Early-maker in Medical, Hydrogen, FINANCIAL
and 3D Metal Printing... VALUE CREATION
• Three promising
Hydrogen ...with ESG focus and transition ecosystems
towards carbon-free operations
3D Metal
Printing
Fabric Steel
Cords Compounds
Cords
Semi
Finished
2019 2023
* Only transport and distribution upstream and downstream of Natural Rubber, semi-finished and finished goods
** Volatile organic components
Spain Roadshow - June 11, 2021
Reducing impact
Sustainable natural rubber supply
Recycling systems /
Circular economy
63% to 96% of the life cycle impact
** *
Eastern Europe
Western & Central
North & Central Europe - 8%
America
- 4% - 1%
- 8%
China
+ 8%
+ 10%
+ 80%
+ 9% South America + 2%
Asia (excl. China and India)
- 5% - 3%
- 5%
+ 8%
+ 4%
Source : Michelin.
OE RT
Eastern Europe
Western & Central
North & Central Europe 0%
America
+ 21% + 2%
+ 10% China
+ 17%
+ 11% + 48%
OE RT
Source : Michelin.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2.9
2.0 2.4 2.0 2.1
2.0 1.7 1.7
1.4 1.3 0.9 1.4
0.0 0.3
-0.5 -0.6
-1.4 -1.2
-2.2
-5.4 -4.1
-6.7 -5.1
-6.0
-11.7
-32.5
VIGEO EIRIS
SUSTAINALYTICS MSCI CDP ECOVADIS ISS-OEKOM
Moody’s
(risk rating) 2020 2020 2020 2019 2020
2020
Status
Ranking / 28%
59%
37%
26%
18%
21% 18%
Light
manufacturing
Europe Global Average MICHELIN
score
2nd of 40 in the
sector
26%
Water security
Distribution of
19%
15% 15% 10%
0% 1% 1% 5%
3%
* corporate rating 2018
Severe High Medium Low Negligible CCC B BB BBB A AA AAA
ratings
Light Europe Global Average MICHELIN score
manufacturing
Auto Components (Industry Global universe
Group)
in USD/kg
300
7% €/$ exchange rate: 250
Textiles RSS3
200
Q1 2020 average: 1.104
11 %
150
25 % +9%
Steel cord Natural rubber 100
50 TSR20
Q1 2021 average: 1.207
0
2016 2017 2018 2019 2020 2021
15 %
Chemicals
in index
100 280
260
80
240
19 %
220
23 %
60
200
Filer Synthetic rubber 180
40
160 Synthetic rubber
20 Brent, in USD 140 Manufacturing BLS
120
0
2016 2017 2018 2019 2020 2021 100
2016 2017 2018 2019 2020 2021
1.4 1.3 1.3 1.4 1.5 1.3 1.4 1.3 1.1 1.3 1.5 1.7
160 - -5 % -5 % +10 % +8 % -11 % +2 % -2 % -17 % +16 % +21 % +8 %
140
120
100
80
60
40
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Source: SICOM
Spain Roadshow - June 11, 2021
AT END OF MARCH 2021
(per kg, base 100 in Q2 2018)
75 76 68 64 68 62 63 51 33 43 45 61
- +1 % -10 % -6 % +7 % -9 % +1 % -18 % -35 % +30 % +4 % +35 %
170
150
130
110
90
70
50
30
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
1,037 1,142 1,058 865 900 790 740 727 392 382 543 715
- +10 % -7 % -18 % +4 % -12 % -6 % -2 % -46 % -3 % +42 % +32 %
160
140
120
100
80
60
40
20
0
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Current corporate
A- (S& P); A3 (Moody's); A- (Fitch)
rating
ZERO ZERO
Coupon Conv premium 1.125% p.a Conv premium 0.875% p.a 1.750% p.a 0.000% p.a 1.750% p.a 0.250% p.a 2.500% p.a 0.625% p.a 3.250% p.a
128% 130%
Jan.10, 2017 Sept. 30, 2015
Issue date May 28, 2015 Jan. 10, 2018 Sept. 3, 2018 May 28, 2015 Nov.2, 2020 Sept. 3, 2018 Nov.2, 2020 Sept.3, 2018 Nov. 2, 2020
& May 5, 2017 & Sept. 30,2016
Maturity Jan. 10, 2022 May 28, 2022 Nov. 10, 2023 Sept. 3, 2025 May 28, 2027 Nov.2, 2028 Sept.3, 2030 Nov. 2, 2032 Sept.3, 2038 Nov. 2, 2040 Sept.30, 2045
Annual Annual Annual Annual Annual Annual Annual Annual Annual
Interest payment N/A N/A
May 28 Sept. 3 May 28 Nov. 2 Sept. 3 Nov. 2 Sept. 3 Nov. 2 Sept. 30
ISIN FR0013230745 XS1233732194 FR0013309184 FR0013357845 XS1233734562 FR0014000D31 FR0013357852 FR0014000D49 FR0013357860 FR0014000D56 XS1298728707
$ 200,000 with
€ 1,000 with min. $ 200,000 with min. € 100,000 with min. € 1,000 with min. € 100,000 with min. € 100,000 with min. € 100,000 with min. € 100,000 with min. € 100,000 with min. € 1,000 with min.
min.
Denomination tradable amount tradable amount tradable amount tradable amount tradable amount tradable amount tradable amount tradable amount tradable amount tradable amount
tradable amount
€ 1,000 $ 200,000 € 100,000 € 1,000 € 100,000 € 100,000 € 100,000 € 100,000 € 100,000 € 1,000
$ 200,000
Securitization
7,000
Bond
6,000 CP
2,000
1,000
0
Treasury 2021 2022 2023 2024 2025 2026 2027 and beyond
and
Back-up lines
2,500 120%
1,996 1,980
2,000 1,883 1,804 100%
1,811 1,801
1,711
1,771
1,500 1,340 1,271 1,669 80%
1,221
1,507
1,000 2,010 60%
672 1,100
1,509 1,615
1,274
500 961 40%
749 717 833
-359 517 599
433 426
0 20%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020*
-500 0%
FCF** CAPEX
* Reported FCF from 2007 to 2010, Structural FCF from 2011 onwards
The first Éclair, the first car The radial tire The “green tire” Uptis
removable tire with pneumatic tires
Spain Roadshow - June 11, 2021 CDP 2020 LEADERSHIP VIGEO EIRIS 2018 A1+
Sales contribution of each
segment*
Automotive :
Replacement
Original equipment
Road Transportation :
Specialties :
* 2019 sales
is present in
Spain Roadshow - June 11, 2021
In € billion, unless otherwise stated
CASH RETURN ON
GROWTH PROFITABILITY GENERATION INVESTMENTS
Sales Segment Operating Structural FCF After-tax ROCE* (%)
Income
% margin % of EBITDA
24.1 ~15%
13.7%
21.2
3.0 12.2% On track to
>€3bn deliver in 2020,
excl. COVID-19
2.6 impacts
1.6
0.8 >€1bn
Organic volume growth: Successful M&A strategy Acceleration in our Repositionning and
outperformed the market to build a strong asset High-Tech Materials enrichment of our
basis to address B2B development customers experience
market growth customers businesses
Develop-
Acquisition
of ment
of
External growth vehicles under of
and successful contract
integration
Numerous incubators
around
Renewable/Recycling
Partnership
AUTONOMOUS 50%
ELECTRIC Next major mobility
~50% share of EV2 challenge in the 32%
sales, new mid-term future
vehicules, in total
market in 2030 12%
Value creation opportunities for Michelin
2025
2025 207 2030
2030 Purchasing incentives
New emissions
Notes: 1 C.A.S.E: Connected, Autonomous, Shared, Electric
2 EV: Electric Vehicle (hybrid, battery-powered and fuel cell-powered) standards
3 All occupants enjoy personalized controls, their own infotainment content and targeted contextual advertising
4Source: McKinsey, The future of mobility is at our doorstep
5 Source: McKinsey, Automotive revolution - perspective towards 2030
Torque
ICE2
Battery weight
time EV Original
Equipment/Replaceme
3.1 nt loyalty rate
TIRES FOR EV: INCREASE DEMAND FOR PERFORMANCE
for battery times
electric-vehicles
Interior noise
High-
performance
Rolling
resistance
Wear
HL TIRES ACOUSTIC
solutions (High Load) TECHNOLOGY
aligned
Road handling Endurance with EV 1st tires
needs in the coming weeks
External noise
A VALUE ORIENTED CUSTOMER SEGMENTATION LEVERAGE ALL THE GROUP’S B2C ASSETS
Lifestyle
Focus on 4W Original
valuable Equipment
4W Bicycle
consumers Replacement
Striver
= x5 of “Lifetime
Value” Distribution Motorcycle
Energica Ego
Corsa
Explorer + vehicles
+ income Services New
Powersports
& solutions Adjacencies
+ branded
+ environmental Catering Michelin Lifestyle
Other consumers ~5x Limited
Experiences
Activate all group assets to increase customers retention and lifetime value
Develop the potential of “Data-Driven Marketing”: Leverage segmentation attributes
and statistical analysis to “profile” and better target consumers
Spain Roadshow - June 11, 2021
WITH
TIRES
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
2020 2023
DIGITAL MASSIFYING
FLAGSHIP
MANUFACTURING
PLANTS
Automation
Reactivity
Artificial
Intelligence productivity Cost optimum
In 2025, 16 sites will
gains /year have a production
net of capacity above 100Kt
with average capacity of
OPERATIONAL inflation MATERIAL COST 140Kt
EXCELLENCE 2020-2023 REDUCTION
Flexibility
Design to cost
Simplexity
Scrap reduction
Process
Upstream gains
Standardization
INCREASING
PRODUCTIVITY
Leveraging new SG&A tire SIMPLIFYING
PROCESSES
technologies (AI) gains by Standardizing best
Digitalizing 2023 practices
activities
net of Decision making
Optimizing inflation closer to customer
footprint
Developing shared
service centers
Reengineering end
to end processes
Connecting… Addressing
Fleets customer needs
Drivers with Around Tire
Service
providers services
Unique and differentiated experience for all type of fleets Mobility operators, infrastructure managers, OEMs, insurers...
Customized solutions to transform data into insights
Fleet Services
Tires Mainte-nance New
Drivers and Lead
Fleet & (incl. service Road Diagnosis …
TaaS Other service
predictive) mobility advice generation
Mgt Parts providers
auto-suppliers Insurers
Hydrogen
mobility
oil & gas providers Insights for
company offer design
Car repairs,
accessories and
parts Electric mobility
providers
transactions per
DIGITAL SERVICES year
PLATFORM service providers
Sales 2023
€0.7bn
Sales 2019
offers launched per
€0.6bn
IOT & Data year
businesses
25 years+ of expertise as a manufacturer and distributor catering to the BECOMING A LEADING INNOVATION AND
blood, biotech, and regenerative medicine industries
MANUFACTURING PARTNER
Designs, develops and manufactures next-generation, high-performance Cell Therapy Bioresorbables Regenerative
material solutions for clients in the life sciences and various industrial medicine
industries
€6.5bn
Strong complementaries with
CAGR Faurecia
CAGR
Strong leverage of Michelin
€1.3bn R&D
€0.3bn
Customer intimacy and
2020 2025 2030
innovative business model
Note: Symbio is present in Fuel Cell Stack system (bipolar plates, MEA, endplace, etc.) and Auxiliaries (Interfaces, Electric & Electronics, supply unit, etc.)
1: 100% of Symbio
Michelin holds a 50% stake in Symbio (consolidation based on equity method)
Note: Michelin holds a 50% stake in AddUp (consolidation based on equity method)
1: 100% of AddUp
70% Carbon
Scope 3 of suppliers having
supply chain Neutrality
science-based targets
Suppliers setting ambitious reduction targets
● TRWP: ● Microplastics :
‒ Characteristics: mixture of rubber TRWP
Microplastics
‒ Characteristics: bits of plastics
and road surface minerals floating / suspensed in water
‒ High density: 1,8 ‒ Diameter: ~ 5mm
‒ Diameter : ~100 mm
‒ Degradability rate: High
≠ ‒ Degradability rate: very low
● Scientific studies conducted to date by the TIP*, the ETRMA** and l’EAA*** suggest that:
‒ 2% to 5% of TRWPs reach estuaries
‒ TRWPs represent only a minor fraction of airborne particule matter (PM10 and PM2.5)
* TIP - Tire Industry Project
** ETRMA – European Tyre & Rubber Manufacturers Association
*** Agence Européenne de l’Environnement EEA report 10/2019
This presentation may contain a number of forward-looking statements. Although the Company
believes that these statements are based on reasonable assumptions as at the time of
publishing this document, they are by nature subject to risks and contingencies liable to
translate into a difference between actual data and the forecasts made or inferred by these
statements."
investor-relations@michelin.com