Michelin CGDE : EXANE BNP PARIBAS – Roadshow USA West Coast – Investor Presentation

in three areas

WITH	AROUND	BEYOND
TIRES	TIRES	TIRES

in sales,	& measured by ROCE ● EBITDA growth
organic and
M&A-driven	incl. M&A
	● Around and Beyond tires:
	crystallization of the value

Features vs. tires:

• Higher Market growth
• Stronger EBIT %
• Lower capital intensity

Roadshow USA West Coast - January 4, 2023

Products and solutions serving all mobilities ...

… while leveraging our expertise in high-tech

materials …

• Cyclicality : very low
• Main drivers : miles driven, GDP, used cars market

Volumes and mix drivers :

• Increase to car access of the worldwide population
• Increase of vehicles weight requiring higher rim size tires
• First cycle of EV soon visible on RT

• Cyclicality : low
• Main drivers : GDP & PMI

Volumes and mix drivers :

• Demand for goods and increase of local-to-local supply chains models
• Boom of e-commerce and last mile delivery
• Urbanization of population

• Cyclicality : low

• Main drivers : GDP, PMI, R&D &	BEYOND
TIRES
public spending

Volumes and mix drivers :

• Customer's needs for increasingly demanding applications in many types of industries (energy, medical, aerospace…)
• Emerging value chains (Fuel Cell, 3D Printing…) shaping the industry's future
• Growing appetence for sustainable materials, recycling and circular economy

• Cyclicality : very high
• Main drivers : regulation & GDP

•	Cyclicality : high
•	Main drivers : GDP, public
	spending, commodity prices,

… with a global and balanced footprint

% of Group Sales by Region, 2021

Volumes and mix drivers :

• Increase of vehicles size requiring higher rim size tires
• Easing of supply constraints of components and semi-conductors
• EV boom: massive renewal of cars fleets
  Roadshow USA West Coast - January 4, 2023

housing and building construction

Volumes and mix drivers :

• Mining: increasing demand for minerals to fuel transition to renewables energies and digital transformation
• Agriculture: growing worldwide population, increase of farmers' investment capacities
• Construction: adaptation of infrastructure and building/housing to meet energy transition requirements

35%

(1) % of Group sales, 2021

1. Replacement
2. Original equipment

38%

27%

Free cash flow* and SOI evolution vs change in volumes sold

									2,692	2,742	2,775	3,009		2,966
					2,478			2,577
			13%
				2,234	2,170
			1,945							1,878	12%
											1,615
1,645	1,507	1,751						1,509
			7%						1,274		2,010
	920							961			1,793
3%	862			599	749	717	833
		426	517
433								3%	2%	3%
	-359					0%	1%		1%	-1%
	-3%
					-6%
		-15%											-14%
2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021
				Free cash flow* (€m)	SOI (€m)	Change in volumes (%)
*Free cash flow as reported from 2007 to 2010, structural free cash flow from 2011 (see slide 55 for the definition of structural free cash flow)

Roadshow USA West Coast - January 4, 2023

BEV: HIGHLY DEMANDING VEHICLES PERFECTLY FIT WITH MICHELIN UNIQUE KNOW-HOW

Key challenges related to BEV

Range

Cockpit noise

Regenerative braking & Torque

Battery weight

Tight space

Key requirements for Tires

Low rolling resistance

Silent architecture

Low abrasion rate & good grip

High rim size

High load capacity

MICHELIN: best combination of performances

"Low tire abrasion rate and safe driving characteristics: Michelin shows how [tires should be] done" *

* source: ADAC, Dec 2021 - Download the ADAC study

STEEP INCREASE OF GROUP SALES TO BEV

Share of tires sales to BEV, in % of total OE sales

+30%

H1 2021

H1 2022

MICHELIN PREFERRED TIRE MAKER FOR LEADING EV OEMS

United
States		China
		Europe

TESLA

Roadshow USA West Coast - January 4, 2023