Michelin Cie Gen Unsp/Adr (MGDDY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Ladies and gentlemen, welcome to the Michelin Conference Call. I now hand over to Mr. Florent Menegault, Chief Executive Officer, and Mr. Yves Chappell, General Manager and Group CFO. Gentlemen, please go ahead. Good evening, ladies and gentlemen. Thank you for joining us tonight for our semester results. In a highly volatile environment that I am sure everyone has noticed, I would like to emphasize the very solid profile of our group. What we can see on the slide is that we have a very engaged and agile team. We have an 85 engagement rate in 2025, which puts us in a very good position in terms of engagement. We have the ability to cope with crisis quickly and to adapt. and we also have a very strong innovative background. We have built over time robust financials, a high level of profitability and cash generation, and a strong balance sheet. All major agencies rating at A-level, with Scope and Moody's reaffirming their notation a few weeks ago. Our local-to-local sourcing strategy pays dividends, especially in this time. 70% of our U.S. sales is produced in the U.S., and the same U.S. sales, 90% of the same U.S. sales is USMCA compliant. Our business profile is very balanced, both in terms of destination markets and geographies, and this participates to our resilience in turbulent times. We are evolving in a very challenging and unpredictable context. First, public regulations that are amounting, appearing everywhere. We have duties, UDR, taxes, and all in all, these new duties, taxes, regulations have a negative impact of more than 100 million on our group results in the first semester of 2025. Forex as well and I'm referring mainly to the US dollar euro exchange rate is evolving very quickly and we started the year with a positive FX assumption for 2025 and now we...