Cie Generale Des Etablissements Michelin Sa · EURONEXT:ML
Cie Generale Des Etablissements Michelin Sa — Michelin — UBS Paris Autos Day 7th Edition 2025
55 slides from Cie Generale Des Etablissements Michelin Sa's conference presentation, Apr 2, 2025
Slide 1: Paris Autos Day 7th Edition - April 2, 2025
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Slide 2: Implementing our Michelin in Motion 2030 strategy
STRATEGY Implementing our Michelin in Motion 2030 strategy Tires Addressing all mobility usages through better products share of 18’’+ in MICHELIN-branded sales Highly engaged and A powerful and widely Services and Experiences talented teams recognized brand Leveraging customer intimacy for an enhan
Slide 3: 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 4: 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% 2,5 12% 2 2 7% 1,5 3% 1 3% 1 0,5 1% 1% 2% 0% 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 20
Slide 5: 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 6: 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 per year 65% 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 7: 2024 sales reflecting OE downcycle and contextual headwinds
RS3 2024 sales reflecting OE downcycle and contextual headwinds. Strengthening positions in Mining RESULTS RS3 Sales Evolution Dec-24 YTD vs previous year (in tonnage, on a 100 basis) Beyond Road OE > 75% of the drop -5 -1 -1 100 AG+CO OE CO RT Other Mining -7 1 0 91 -2 -2 -1 Customer Events Export
Slide 8: Industrial operations: Adjusting and upscaling to support growth
Industrial operations: Adjusting and upscaling to support growth on targeted markets RESULTS Announced capacity adjustments Capacity impact Digital and AI applications Cholet* in Manufacturing: a growing reality Olsztyn standard PC € Savings from digital & AI Ardmore Shenyang Karlsruhe Homburg Olszt
Slide 9: Local-to-local illustration: Michelin in the USA
RESULTS Local-to-local illustration: Michelin in the USA Employees Anniversary in South Carolina of Group sales Mostly Manufacturing sites* * of which 20 Tire and 15 Polymer Composite Solutions Paris Autos Day 7th Edition - April 2, 2025
Slide 10: Polymer Composite Solutions: Leveraging our expertise and innovations
Polymer Composite Solutions: Leveraging our expertise and our innovations, for highly demanding applications APPENDIX R&D Manufacturing Growth strategy • Unique expertise • Ability to scale up and • M&A-driven growth acquired in tire design reproduce the Features vs. tires: & manufacturing: material
Slide 11: 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 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 2024-2026
Slide 12: 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 i
Slide 13: Michelin
MICHELIN
Slide 14: 2025 markets: OE expected to recover in H2
2025 markets: OE expected to recover in H2, Replacement reflecting moderate global growth GUIDANCE Passenger car Truck* excl. China Specialties* & Light truck* -2% / +2% -1% / +3% -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 Polymer Two-whee
Slide 15: 2025 Guidance relying on a robust action plan
In a highly 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 Tariff uncertainties Segment operating income @ iso-FX Mining headwinds over …Miche
Slide 16: 2025 Financial Agenda
AGENDA 2025 Financial Agenda April 24, 2025* May 16, 2025 July 24, 2025* October 22, 2025* * After close of trading Paris Autos Day 7th Edition - April 2, 2025
Slide 17: Gearing improved, fostered by strong cash generation
Gearing improved, fostered by strong cash generation. Solid credit rating RESULTS Net debt Agency ratings (€ millions) Compagnie Générale des Établissements Michelin, as of March 31st, 2025 -169 3,281 Long Short +382 3,112 Outlook term term +208 +502(1) S&P A A-1 = Other(2) Translation +965 adjustme
Slide 18: Slide 18
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 Paris Autos Day 7th Edition - April 2, 2025
Slide 24: 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 25: 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 26: Tire Businesses
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Slide 27: Michelin exclusive on iconic cars
APPENDIX Michelin exclusive on iconic cars Mercedes-AMG One Ferrari F80 All Bugatti, including Tourbillon Aston Martin Valhalla Maserati GT2 Stradale Porsche 718 Cayman GT4 RS Paris Autos Day 7th Edition - April 2, 2025
Slide 28: Michelin tire market access
Michelin tire market access: Reflecting broad product range in B2C and deep intimacy with service providers in B2B APPENDIX B2C market access B2B market access ~50% ~50% ~100% ~75% ~10% ~5% ~15% Wholesalers & Platforms Wholesalers ~95% Clubs E-retail Garages & Tire Auto Vehicle pure Tire Garages & g
Slide 29: Leveraging Michelin distribution assets and accelerating franchise
Leveraging Michelin distribution assets and accelerating franchise APPENDIX Franchised and company-owned retail networks 100% owned JVs Franchise & minority stakes Wholesale Retail Franchised points of sales evolution 2,200 (100% of network) 1,700 (>60% of network) E-retail 0 Paris Autos Day 7th Edi
Slide 30: Tires abrasion: A considerable competitive advantage
Tires abrasion: A considerable competitive advantage, without any compromise on safety APPENDIX Particle emissions: Particle emissions get reduced with each Michelin vs. other premium tiremakers(1) new range(2) Particle per vehicle unit: g/1,000 km 131 136 122 Pilot Sport 5 e.Primacy CrossClimate 2
Slide 31: BEV: Highly demanding vehicles fit with Michelin's know-how
BEV: Highly demanding vehicles perfectly fit with Michelin’s unique know-how APPENDIX Electric vehicles put the performance of Improving capabilities should benefit to all tires tires to the test >12 kg/t Low rolling resistance Rolling Resistance (in kg/t) Michelin Energy Silent architecture Micheli
Slide 32: Connected Solutions
CONNECTED SOLUTIONS
Slide 33: Connected Solutions: A suite of innovative solutions
Connected Solutions: A suite of innovative solutions to empower mobility players to race towards zero-accident, zero-downtime, zero-emission APPENDIX Unique customer intimacy and usage expertise CONNECTED SOLUTIONS SAFER Connected fleet management services ROADS in-depth knowledge of danger zones to
Slide 34: Michelin Connected Fleets value proposition
Michelin Connected Fleets value proposition: A unique ability to develop insights and turn them into actions APPENDIX Unique insights for customers Insights turned into action Fie ise ld rt ca A unique tire management solution pe p Field capabilities x • Best-in-class expertise on tires usage ab • S
Slide 35: Watèa by Michelin: decarbonize urban LCV fleets
Watèa by Michelin: A unique solution to decarbonize urban LCV fleets APPENDIX Stakes of transition to E-LCV Fleets pain points Value proposition LCVs ~ 3-4% of Tailored solution How to transition ? EV, charging solution, maintenance global CO2 emissions Switch to EV ➔ - 60% emissions How to operate?
Slide 36: Paris Autos Day 7th Edition - April 2, 2025
Paris Autos Day 7th Edition - April 2, 2025
Slide 37: Polymer Composite Solutions: Leveraging our expertise and innovations
Polymer Composite Solutions: Leveraging our expertise and our innovations, for highly demanding applications APPENDIX R&D Manufacturing Growth strategy • Unique expertise • Ability to scale up and • M&A-driven growth acquired in tire design reproduce the Features vs. tires: & manufacturing: material
Slide 38: Perform
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Slide 39: Recognized leadership in non-financial performance
APPENDIX Recognized leadership in non-financial performance Major ratings (as of March 25, 2025) Michelin Ratings B A- Low Risk B- 79 / 100 AAA 73 / 100 10.1 CLIMATE CHANGE WATER SECURITY Prime Gold « LEADERSHIP » « MANAGEMENT » Paris Autos Day 7th Edition - April 2, 2025
Slide 40: Path to full product circularity with 40% renewable or recycled materials
On the path to full product circularity with 40% renewable or recycled materials by 2030, up to 100% by 2050 APPENDIX SYNTHETIC RUBBER NATURAL RUBBER FILLERS PLASTIFIERS / RESINS (1) (2) (1) METALS TEXTILES OTHER … (1) European project sponsored by Horizon 2020; project number: 82068 (2) Carried out
Slide 41: First manufacturer with road-homologated tire with 58% renewable or recycled materials
Michelin: First manufacturer to design a road-homologated tire with 58% renewable or recycled materials APPENDIX On the way to our “100% Renewable or Recycled materials by 2050” goal: new tires with breakthrough technologies Steel incorporating Sustainable recycled scrap metal textile fibers Carbon
Slide 42: TRWP: Michelin driving innovation and advancing knowledge
TRWP: Michelin driving innovation and advancing knowledge in the tire industry APPENDIX Scientific studies to measure the environmental impact of TRWP(1) TRWP AIR WATER Studies confirm that TRWP account for less Studies suggest that most TRWP do not 5 x 10-2 mm than 1% of particulate matter pollutio
Slide 43: Strong commitment to reduce impact on biodiversity and ecosystems
Strong commitment to reduce impact of operations on biodiversity and ecosystems APPENDIX (1) Criteria in accordance with the EUDR - European Union Deforestation-free Regulation - or other evidence of deforestation absence | (2) Excluding some Polymer Composite Solutions activities | (3) Excluding ch
Slide 44: Sustainable natural rubber by Michelin
Sustainable natural rubber by Michelin: Driving progress across a complex and fragmented value chain APPENDIX ACCELERATING SUSTAINABILITY ACROSS THE INDUSTRY BY 2025 ID CARD • Dedicated roadmap tracking commitments on zero deforestation, human rights, and farmer empowerment ~90% of Group’s supply co
Slide 45: Externalities costs: Close to 30% reduction
APPENDIX Externalities costs: Close to 30% reduction in 5 years Externalities costs evolution: CO2 emissions, VOC(1) emissions and water withdrawals (€ millions) +260 590 428 +25 -130 CO2 Scopes -36 -16 -6 (3) 1&2 Perimeter 330 CO2 Volatile Scope 3(2) Water Increase in the organic CO2 cost per ton c
Slide 46: Climate strategy structured around transition and adaptation plans
Climate strategy structured around transition and adaptation plans, towards net-zero emissions by 2050 APPENDIX STRUCTURED AROUND 2 AXES: ● A TRANSITION plan including initiatives to decarbonize direct and indirect activities in the value chain (Scopes 1, 2 & 3) and a strategic plan to support a low
Slide 47: 2030 environmental ambition: On track to reach net zero in 2050
2030 environmental ambition: On track to reach net zero emissions in 2050 Group’s ability to have an influence APPENDIX high limited -37% Manufac- -47% Net Zero CO2 emissions Turing* vs. 2019 Logistics* -28% CO2 emissions -90% CO2 emissions vs. 2019 vs. 2019 Upstream energy* Raw material Suppliers*
Slide 48: Sharp reduction in environmental footprint of our operations
Sharp reduction in the environmental footprint of our operations, on track to reach 2030 target APPENDIX Environmental footprint of our sites (MEF vs. 2025 till 2019, i-MEP since 2019 - ISO14001- certified) 100 (2) Water withdrawal x water stress Generated waste MEF (1) Organic solvent use // Energy
Slide 49: Fostering social and societal cohesion through ambitious initiatives
APPENDIX Fostering social and societal cohesion through ambitious initiatives ‘Living wage’ for every Michelin One Care Program, Group employee a universal social protection floor • ‘Global Living Wage Employer’ • Provide time to welcome a new child certified by Fair Wage Network • Family protection
Slide 50: Diversity, Equity, Inclusion: Further progress in gender balance
Diversity, Equity, Inclusion: Further progress in gender balance and acceptance of diversity with a new policy supporting the dynamic APPENDIX EQUAL OPPORTUNITY Every employee can develop his/her talents within the company. Michelin pays particular attention to the internal promotion of manufacturin
Slide 51: Michelin governance pillars
Michelin governance pillars: Clear segregation of management and supervisory powers APPENDIX SUPERVISORY BOARD GENERAL PARTNERS With unlimited joint and personal liability for the Company’s debts SAGES Barbara Dalibard MANAGERS Non-Managing General Partner Chair Managers administer and ; manage the
Slide 52: ESG awareness and oversight embodied in governance structure
ESG awareness and oversight are fully embodied in Michelin’s governance structure APPENDIX SUPERVISORY BOARD AUDIT COMMITTEE CSR COMMITTEE CORPORATE SUSTAINABLE Decisions CORPORATE STAKEHOLDERS COMMITTEE Recommendations DEVELOPMENT AND IMPACT EMPLOYEE HUMAN ETHICS SUSTAINABLE ENVIRONMENT HEALTH AND
Slide 53: 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 54: 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 55: 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 Paris Autos Day 7th Edition - April 2, 2025