Cie Generale Des Etablissements Michelin Sa · EURONEXT:ML
Cie Generale Des Etablissements Michelin Sa — Michelin — H1 2025 Earnings Presentation
46 slides from Cie Generale Des Etablissements Michelin Sa's earnings presentation, Jul 25, 2025
Slide 1: Strategy
July 25, 2025
Slide 2: 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 * Average Free Cash Flow before M&A (2019-2024) Local-to-local Diverse markets & balanced geographies 2024 sales breakdown (
Slide 3: Amidst multiple headwinds, Group ready to seize upcoming opportunities
Amidst multiple headwinds, Group ready to seize upcoming opportunities RESULTS Value-Accretive segments Michelin Brand Duties, EUDR, Tax… Strategic partnerships OE contracts renegotiated 12 activity closures announced * In the absence of any further deterioration over the past 2 years in the economi
Slide 4: Solid overall Group performance in H1 on People, Profit and Planet
RESULTS Solid overall Group performance in H1 on People, Profit and Planet PEOPLE PROFIT PLANET Safety Segment Operating Income CO2 emissions scopes 1&2 Total Recorded Incident Rate (1) @ iso-FX 0.82 vs H1 2024 11.3% margin at iso-FX vs H1 2024 - A CLIMATE CHANGE A- WATER SECURITY A SUPPLIER ENGAGEM
Slide 5: H1 markets sharply down at OE; replacement markets fueled by budget imports
H1 markets sharply down at OE both Europe and North America. Replacement sell-in markets fueled with imports of budget tires 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 Solution
Slide 6: H1 sales: Volumes dragged down by OE, strong price & mix
H1 sales: Volumes dragged down by OE with still resilient RT, strong price & mix developments RESULTS H1 2025 sales evolution (€ millions and as a %) -1.9% 13,481 4 542 22 13,229 Scope 13,028 (+0.0%) Non-tire -201 businesses -820 Tire* (+0.2%) Currency Price-mix (-1.5%) Tire* Volumes (+4.0%) (-6.1%)
Slide 7: H1 volumes: OE accounting for 85% of total decline
H1 volumes: OE accounting for 85% of total decline, mainly Truck and Agricultural. Targeted business segments generating growth RESULTS Positive contribution PC 18’’+ & 2Wheel 100 100 100 Positive contribution Positive contribution Mining & Aircraft MICHELIN New -2 97 -1 -6 93 -1 -9 91 -1 H1 2024 OE
Slide 8: H1 SOI hampered by volumes and cost inflators
H1 SOI hampered by volumes and multiple cost inflators, supported by strong price-mix and cost management RESULTS Segment operating income evolution (€ millions | % of sales) 1,782 +499 -9 +105 1,500 1,452 Scope -240 +12 Raw Other -48 materials -175 -23 Non-tire * -451 Price-mix Currency Volumes Man
Slide 9: Profitability across segments: Mainly affected by lower volumes
RESULTS Profitability across segments: Mainly affected by lower volumes Segment operating income and Margin by reporting segment (€ millions | % of sales) H1 2024* H1 2025 Volume effect as a % of sales, H1’25 vs. H1’24 RS1 €946m €865m -2.5% 13.2% 12.2% RS2 €306m €166m -9.3% 9.5% 5.5% RS3 €530m €421m
Slide 10: Cash generation reflecting Group's usual business seasonality
RESULTS Cash generation reflecting Group’s usual business seasonality (€ millions | % of sales) 2,428 18.6% -1,254 Change in -221 WCR Taxes & interests -102 -114 +118 +23 Segment EBITDA -1,031 Other Free Cash Flow -12 Free Cash Flow (1) -165 JV & before M&A Capex Other Restructuring financial M&A as
Slide 11: Confirming financial strength, with Gearing improving in H1
RESULTS Confirming financial strength, with Gearing improving in H1 Net debt Agency ratings (€ millions) as of July 24, 2025 4,260 -318 +978 Long Short Outlook +94 3,942 term term -356 Other A stable A-1 +102 +12 3,112 Translation adjustments A stable F1 M&A Dividends FCF before A stable S-1 M&A (1)
Slide 12: Full-year market outlook: OE expected to remain soft
Full-year market outlook: OE expected to remain soft, Replacement reflecting moderate global growth RESULTS Passenger car Truck* excl. China Specialties* & Light truck* -2% / +1% -2% / +1% -1% / +2% OE RT OE RT Mining tires Beyond-road tires 0% 0% OE RT Aircraft tires H1 H2 H1 H2 H1 H2 H1 H2 Polymer
Slide 13: 2025 sales outlook: Supported by differentiating products and positive market dynamics
2025 sales outlook: Supported by differentiating products and positive market dynamics RESULTS MICHELIN CrossClimate 3 MICHELIN X LINE GRIP D initiating a new market segment outstanding performance Mileage* Rolling Grip* Resistance* *compared to previous range Mining sales: Back to growth as expecte
Slide 14: Local-to-local illustration: Michelin in China
RESULTS Local-to-local illustration: Michelin in China A longstanding presence and leadership Strong relationship with leading domestic OEMs Since Since commercial manufacturing of Group sales Employees Plants & RDI center service centers designed for the MICHELIN Brand and more… awareness Market sh
Slide 15: Tires abrasion: A considerable competitive edge for Michelin
Tires abrasion: A considerable competitive edge for Michelin, with no compromise on total performance RESULTS Particle emissions: Michelin ahead of all premium tiremakers unit: g /1,000 km / ton of vehicle 78 76 71 63 65 Energy efficiency Average 52 Mileage Safety Premium competitors Source : ADAC «
Slide 16: Polymer Composite Solutions: Accelerating innovation synergies
Polymer Composite Solutions: Accelerating innovation synergies for mission-critical applications RESULTS how our composites how our composites enhance travel experience ensure continuity and security of energy supply Durability Tear & UV resistance Soundproofing Flexible solutions Expansion tanks: f
Slide 17: 2025 full year outlook: Delivering results and return
GUIDANCE 2025 full year outlook: Delivering results and return Outlook unchanged Pursuing an in the absence of any further deterioration in the economic environment in H2 2025 attractive shareholder policy Segment operating income Launching tranche 2 @ iso-FX of the 2024-26 share buyback program Fre
Slide 18: Appendix
APPENDIX. \»* 4.
Slide 19: Financial Agenda
AGENDA Financial Agenda October 22, 2025 * February 11, 2026 * * After close of trading 2025 First-Half Results, July 24, 2025
Slide 20: PC/LT tire markets
PC/LT tire markets: OE still depressed in Europe and North America, RT resilient overall but boosted with imports APPENDIX PC/LT tire sell-in market, H1 2025 (YoY change in number of tires) Europe North & Central America -8% -5% +5% China +2% Global market + 10% 0% Africa, India, Middle East 0% +3%
Slide 21: Truck tire markets
Truck tire markets: OE depressed in North America and Europe gradually stabilizing; RT markets fueled with imports APPENDIX Truck tire sell-in market, H1 2025 (YoY change in number of tires) North & Central America Europe -4% -19% Global market +4% China +4% +7% Excl. China Incl. China -5% +1% Afric
Slide 22: H1 2025: Strong price-mix, volumes still hampered by OE sales
H1 2025: Strong price-mix, volumes still hampered by OE sales, forex headwind developing APPENDIX YoY Quarterly change (% of sales) VOLUMES PRICE-MIX CURRENCY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2024 2025 2024 2025 2024 2025 4.8 3.3 2.9 2.9 0.7 1.5 0.7 -0.4 -0.4 -
Slide 23: Manufacturing operations: Adjusting and upscaling
Manufacturing operations: Adjusting and upscaling to support growth on targeted markets APPENDIX Announced capacity adjustments (2023-2025) Ardmore Karlsruhe Homburg Capacity impact Cholet Olsztyn Querétaro* Shenyang standard PC Guarulhos* Truck Trier Olsztyn Shanghai Midigama* Compact Line Bias Van
Slide 24: 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) RSS3 TSR 20 2.0 2.1 2.2 2.4 2.2 TEXTILES 1.6 1.6 1.6 1.6 1.8 1.8 1.5 1.7 1.7 1.8 1.7 1.9 1.6 NATURAL RUBBER 1.4 1.4 1.4 1.4 1.3 1.4 Q1 Q2 STEEL CORD 2015 2016 2017 2018
Slide 25: Sales by currency & impact on Segment operating income
APPENDIX Sales by currency & impact on Segment operating income % of sales 2025 Dropthrough* % of sales 2025 Dropthrough* Q2 2025 currency change vs. € Sales ➔ SOI Q2 2025 currency change vs. € Sales ➔ SOI 12 rolling months 12 rolling months USD 39% -0.9% 10% / 30% JPY 1% +1.3% 60% / 70% EUR 32% - -
Slide 26: A sound adequate cash position with maturities well spread over time
A sound adequate cash position with maturities well spread over time APPENDIX Debt maturities as at June 30, 2025 (carrying amount | € millions) 7,000 Loans from financial institutions Securitization 6,000 Bond CP 5,000 Derivatives and leases Cash and cash equivalents 4,000 Cash management Financial
Slide 27: Shareholder return sustained at an attractive level
APPENDIX 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 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 2024-2026: up to €
Slide 28: Restatement of reporting segments of interim periods 2024
APPENDIX Restatement of reporting segments of interim periods 2024 Intermediate restatements following the scope changes of reporting segments implemented in 2024 (Main change: Two-wheel tire business now consolidated in the RS1 vs RS3 previously) Q1 2024 H1 2024 9M 2024 FY 2024 M€ released restated
Slide 29: Slide 29
Slide 30: 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 Be a reference in diversity, equity and inclusion IMDI 70 72 73 80 PEOPLE Be best-in-class
Slide 31: 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 32: Widening range of destination markets ensuring resilience
APPENDIX Widening range of destination markets ensuring resilience Destination markets across diverse verticals Balanced geographies 2024 sales breakdown (% of revenue) 2024 sales breakdown (% of revenue) Polymer Composite Solutions Specialties Tires Connected Solutions, Retail & Distribution, Rest
Slide 33: Increasing cash and margin generation across business cycles
APPENDIX Increasing cash and margin generation across business cycles FCF(1) and SOI(2) evolution vs. change in volumes 3.5 3 3 13% 12% 2.5 2 2 7% 1.5 3% 1 3% 1 1% 2% 0.5 0% 1% 0 -1% 0 -2% -0.5 -3% -6% -5% -5% -1.5 -2.5 -15% -14% -3.5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 34: 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 35: 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 36: s &
s &
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 2025 First-Half Results, July 24, 2025
Slide 42: 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 43: 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 44: 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 45: 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 46: Contacts
CONTACTS BUSINESS CENTER PARIS TROCADERO Guillaume JULLIENNE 112 avenue Kléber 75116 Paris – France Benjamin MARCUS 23 place des Carmes Dechaux 63040 Clermont-Ferrand – France Flavien HUET investor-relations@michelin.com investor-relations@michelin.com 2025 First-Half Results, July 24, 2025