Cie Generale Des Etablissements Michelin Sa · EURONEXT:ML
Cie Generale Des Etablissements Michelin Sa — Michelin — Non-Deal Roadshow (July 2025)
33 slides from Cie Generale Des Etablissements Michelin Sa's roadshow presentation, Jul 1, 2025
Slide 1: July 1st – 2nd, 2025
July 1st – 2nd, 2025
Slide 2: Increasing cash and margin generation across business cycles
RESULTS Increasing cash and margin generation across business cycles FCF(1) and SOI(2) evolution vs. change in volumes 3 3 13% 12% 2 2 7% 3% 1 3% 1 1% 1% 2% 0% 0 -1% 0 -2% -3% -6% -5% -5% -15% -14% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Free cash flow (€
Slide 3: Solid Group profile fit for turbulences
RESULTS Solid Group profile fit for turbulences Engaged and agile teams Financial solidity Engagement rate Cash Generation 2019-24 * Gearing end of 2024 Demonstrated agility Recently upgraded * Average Free Cash Flow before M&A (2019-2024) Local-to-local Diverse markets & balanced geographies 2024 s
Slide 4: Replacement markets resilient but OE highly negative in Europe and North America
At the end of May, Replacement markets are resilient but OE highly negative both Europe and North America RESULTS Passenger car Truck* excl. China Specialties* & Light truck* Mining OE RT OE RT tires Beyond-road tires OE RT Aircraft tires Polymer Two-wheel Composite tires Solutions * Sell-in Tire Ma
Slide 5: 2025 Product plan demonstrating innovation leadership
RESULTS 2025 Product plan demonstrating innovation leadership Passenger Car Truck Specialties BF GOODRICH KO3 MICHELIN X LINE ENERGY 3 MICHELIN X-CRANE 2 total A/T segment sales Fuel savings (2) Load capacity (4) A/T segment MICHELIN PRIMACY 5 MICHELIN REMIX 2 MICHELIN CEREXBIB 2 Mileage (1) TCO vs
Slide 6: Key partner to major OE players, innovation powered by data and AI
Key partner to major OE players, innovation powered by data and AI – illustrated RESULTS The tire wear monitoring solution for any connected car acknowledged as by major OEMs Ferrari F80 Nio ET5 software and algorithms Peugeot 3008 Hyundai IONIQ 5 & Offering drivers unrivaled levels of safety and co
Slide 7: Tires abrasion: a considerable competitive advantage
Tires abrasion: A considerable competitive advantage, without any compromise on safety, RESULTS confirmed by the most recent reference study (June 2025) Particle emissions: New ranges setting the standard Michelin vs. other premium tiremakers(1) Particle per vehicle (2) unit: g/1,000 km/ t of vehicl
Slide 8: Polymer Composite Solutions: Accelerating innovation synergies for mission-critical applications
Polymer Composite Solutions: Accelerating innovation synergies for mission-critical applications RESULTS Flightdeck panel components Addressing fugitive emissions Windshield anti-icing valve for petrochemical industry Cargo compartment smoke detector Cargo door sealing systems Industrial facility pi
Slide 9: Industrial operations: Adjusting and upscaling to support growth
Industrial operations: Adjusting and upscaling to support growth on targeted markets RESULTS Announced capacity adjustments (2023-2025) Ardmore Karlsruhe Capacity Digital and AI applications Homburg impact in Manufacturing: a growing reality Cholet Olsztyn € Savings from digital & AI Querétaro * She
Slide 10: Full-year market outlook: OE expected to stabilize in H2
Full-year market outlook: OE expected to stabilize in H2, Replacement reflecting moderate global growth RESULTS Passenger car Truck* excl. China Specialties* & Light truck* -2% / +2% -2% / +2% -1% / +3% OE RT OE RT Mining tires Beyond-road tires 0% 0% OE RT Aircraft tires H1 H2 H1 H2 H1 H2 H1 H2 Pol
Slide 11: 2025 Guidance relying on a robust action plan
In an increasingly uncertain context, 2025 Guidance relying on a robust action plan GUIDANCE In a favorably oriented but highly uncertain context… Underlying growth in most destination markets OE markets gradually reversing Tariffs uncertainties Segment operating income Mining headwinds over @ iso-F
Slide 12: Michelin
we MICHELIN
Slide 13: Appendix
APPENDIX. ‘~~ a.
Slide 14: Strong mix and favorable price supported by indexation clauses
Strong mix and favorable price supported by indexation clauses, volumes down in OE across segments but resilient in RT APPENDIX Q1 2025 sales evolution (€ millions and as a %) -1.9% 6,642 1 Scope 43 6,515 (+0.0%) 320 6,472 -5 Non-tire Currency businesses (+0.7%) (-0.1%) -486 Price-mix Volumes (+4.8%
Slide 15: Group sales penalized by OE downcycle, Replacement sales growing
Group sales penalized by continuing OE downcycle, Replacement sales growing in RS1, RS2, Mining & Aircraft APPENDIX Sales by reporting segment (€ millions) Q1 25 Q1 24 Δ RS1 Sales 3,559 3,518 +1.2% o/w volume change - - -3.3% RS2 Sales 1,529 1,584 -3.5% o/w volume change - - -8.9% RS3 Sales 1,427 1,
Slide 16: Raw materials cost breakdown and evolution
APPENDIX Raw materials cost breakdown and evolution 2024 Raw materials cost breakdown Natural Rubber: TSR20 and RSS3 (SICOM, $/kg) 4.8 3.7 RSS3 TSR 20 3.4 2.8 TEXTILES 1.9 4.5 2.0 1.6 1.6 2.0 1.6 1.6 1.8 2.1 1.8 1.5 2.2 2.4 3.4 3.2 2.5 NATURAL RUBBER 1.8 1.7 1.4 1.4 1.7 1.4 1.4 1.3 1.7 1.8 1.4 1.7 1
Slide 17: 2024 Shareholder return sustained at an attractive level
APPENDIX 2024 Shareholder return sustained at an attractive level 2021(1) 2022 2023 2024 DIVIDEND DIVIDEND 1.13 1.25 1.35 1.38 PER SHARE(€) • 2024 proposed dividend of €1.38, +2.2% vs 2023 EARNINGS PER SHARE BASIC(€) 2.58 2.81 2.77 2.65 SHARE BUYBACK PAY-OUT RATIO 44% 44% 49% 52% • Program over 2024
Slide 18: Slide 18
Slide 19: Strategic Scorecard - 2024 results
APPENDIX Strategic Scorecard - 2024 results in line with 2030 ambitions Be world-class in employee engagement Engagement Rate 82.5% 83.5% 84.7% >85% Be world-class in employee safety TCIR* 1.07 1.01 1.03 <0.5 People Be a reference in diversity, equity and inclusion IMDI 70 72 73 80 Be best-in-class
Slide 20: Leveraging unique and differentiating assets across enlarged playground
Leveraging unique and differentiating assets across enlarged playground APPENDIX TIRES SERVICES AND EXPERIENCES Highly engaged and A powerful and widely talented teams recognized brand Connected E-Retail Solutions Distribution Lifestyle & Retail POLYMER COMPOSITE SOLUTIONS Conveyors, Innovation lead
Slide 21: Value-driven strategy: Winning where it matters
APPENDIX Value-driven strategy: Winning where it matters Original equipment: Being selective to extract the right value Maximizing value creation for OEMs & for Michelin Strategic Innovation Brand power partnerships Loyalty Replacement: Accelerating on value-accretive segments Ensuring value creatio
Slide 22: Value-driven strategy: Winning where it matters - illustrated
Value-driven strategy: Winning where it matters - illustrated Technological leadership & APPENDIX Long-lasting trend of mix enrichment differentiating service 65% per year 50% 40% per year CAGR* 2019 2021 2024 Share of >18’’ tires in Sustainable mix impact on EBIT Market trend in >18’’ tires* MICHEL
Slide 23: Roadshow Bernstein-SG, London, July 1st - 2nd, 2025
Roadshow Bernstein-SG, London, July 1st - 2nd, 2025
Slide 24: Driving higher profitability and strong cash generation
2024 CMD Driving higher profitability and strong cash generation Segment Operating Income Segment Operating Margin FCF before M&A (bn €, excl. substantial (1) M&A, @2023 FX) (% of sales) (bn €, cumulative over the period) 4.2 14.0% 5.5 3.6 12.5% 4.4 3.3 12.3% 4.0 Cumulative over 3.0 2024-26 2.8 2017
Slide 25: Confirmed ROCE floor and shareholder return
2024 CMD Confirmed ROCE floor and shareholder return Return on Capital Employed Payout Ratio (% of net result) 49% 11.4% c.50% 44% >10.5% 10.3% 10.1% 21% 2019 2021 2023 2026 2030 2019 2021 2023 2026 2030 ✓ Including impact of M&A (goodwill, ✓ Share buyback program up to €1bn amortization of intangib
Slide 26: Strong mix effect, improved margin across reporting segments
2024 CMD Strong mix effect, improved margin across reporting segments SOI bridge by lever Segment Operating Margin - by SR (€bn and % of sales, excl. substantial M&A, @2023 FX) (% of sales) €4.2bn 13.7% 14.0% SR1 Non-Tire >14% Operational Performance* 6.5% €3.6bn SR2 Mix >10% Volume 12.6% 16.5% SR3
Slide 27: Taking Group competitiveness to the next level: Manufacturing
2024 CMD Taking Group competitiveness to the next level: Manufacturing Strategic levers Tech & Care levers o Local-to-local o IA & Digital o Value-driven production mix o Industrial process optimization o Lower environmental impact o Reduce water and energy consumption o Talent attraction & retentio
Slide 28: Taking Group competitiveness to the next level: SG&A & Supply Chain
Taking Group competitiveness to the next level: SG&A & Supply Chain 2024 CMD Improving SG&A performance Reducing inventory levels and fostering innovation whilst improving customer service Inventory reduction € -0.5bn 2023 2026 Roadshow Bernstein-SG, London, July 1st - 2nd, 2025
Slide 29: M&A: A proven track record of successful integration
2024 CMD M&A: A proven track record of successful integration Fenner Active portfolio • 9% CAGR 2018-2023 (excl. Solesis) management Multistrada & Camso • 2023 EBIT +4 pts vs 2018 • Solesis capital opened to Altaris 2018-2019 : • Multistrada EBIT from negative territory in based on €450M EV (2021) €
Slide 30: M&A as a growth & value accelerator
M&A as a growth & value accelerator: Accessing new markets and leveraging Group innovation power 2024 CMD Clear fundamentals Strict financial criteria Strategic fit EPS-accretive Accelerating from year 1 growth Parental advantage brought by Michelin Group ROCE sustained above 10.5% Value-accretive t
Slide 31: Glossary
GLOSSARY Glossary Free cash-flow, which is stated before dividend payments and financing transactions, corresponds to net cash from operating activities less net cash used in investing activities, including JV financing, adjusted for net cash-flows relating to cash management financial assets and bo
Slide 32: Disclaimer
DISCLAIMER Disclaimer This presentation is not an offer to purchase or a solicitation to recommend the purchase of Michelin shares. To obtain more detailed information on Michelin, please consult the documents filed in France with Autorité des marchés financiers, which are also available from the Mi
Slide 33: Contacts
CONTACTS BUSINESS CENTER PARIS TROCADERO Guillaume JULLIENNE 112 avenue Kléber 75116 Paris – France Flavien HUET 23 place des Carmes Dechaux 63040 Clermont-Ferrand – France Benjamin MARCUS investor-relations@michelin.com investor-relations@michelin.com Roadshow Bernstein-SG, London, July 1st - 2nd,