Michelin increased segment operating income to €3.6bn in 2023 and generated a strong €3.0bn in free cash flow, reflecting the strength of the Group’s strategy

Clermont-Ferrand – February 12, 2024 – 5:45 pmThis performance illustrates the Group’s strategy to capture the full value of its differentiated solutions, designed to meet increasingly demanding customer requirements.(in € millions)2021 as reported: €10.31.
22021 dividend per share restated to reflect the four-for-one stock split on June 16, 2022.
2021 as reported: €4.50.
3 Free cash flow corresponds to net cash from operating activities less net cash used in investing activities, adjusted for net cash flows relating to cash
management financial assets and borrowing collaterals.(in number of tires)(in number of tires)(excluding China)Demand in South AmericaSales were positively impacted by the assertive price increases introduced in 2022 and early 2023 to offset sharply rising costs.Volumes sold declined by 8.5% over the year, reflecting both unfavorable comparatives, particularly in the second half, and the massive fleet and dealer destocking that continued through to year-end in every geography. In this environment, the Group pursued its selective marketing strategy with a sharper focus on the MICHELIN brand and the highest value-creating regions.On the Replacement side, where demand contracted in 2023, the Group pursued its value-driven approach by targeting the higher value-added segments.
The agricultural tracks business, where margins are high and the Group is market leader, maintained its strong growth momentum in the United States, Brazil and other parts of the Americas.Sales were nevertheless supported by a favorable price effect. Overall, Group sales volumes rose significantly and exceeded 2019 levels. Sales revenue was also lifted by a favorable price effect, reflecting the market value of the Group’s technological superiority and capacity for innovation, as illustrated by the introduction of the new MICHELIN Air X Sky Light tire.At the date of this press release, the audit procedures have been carried out and the statutory auditors’ report is being issued.Non-financial performanceagencyClimatechangeWatersecurityPrimePlatinumWater Security: Michelin’s rating (B) has been downgraded vs 2022 and is below the forecast of IMS (A-). It is observed that the industry’s average score deteriorated in 2023 vs 2022, at European and global levels, reflecting a higher level of COP requirement.
Michelin is also recognized as a leader in the «Supplier Engagement» category for the third consecutive year. Since 2018, Michelin has been working with its suppliers to measure and reduce its carbon footprint as part of the CDP Supply-chain program.The improvement dynamic observed in 2022 continued apace in 2023. In the production plants, for example, technical prevention (machinery risks) and behavioral prevention initiatives reduced the number of accidents by more than 10% over the year. The dealership networks, especially Euromaster, were also a major source of progress, with a 7% improvement in their aggregate TCIR.Lead the industry in creating customer value:The key improvement driver remains the exceptional quality of the products sold by the Group, combined with the renowned reputation of the Michelin brand. Customer perceptions also improved sharply in the criteria pertaining to logistics and delivery times.in manufacturing and energy use by 2050The latest selection illustrates the Group’s commitment to expanding the MICHELIN Guide internationally. 
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Fourth-quarter 2023 [People]+44 1212818 004
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PIN code: 147778This press release 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 the Autorité des Marchés Financiers, which are also available onThis press release may contain a number of forward-looking statements. Although the Company believes that these statements are based on reasonable assumptions at the time of publishing this document, they are by nature subject to risks and contingencies liable to translate into a difference between actual data and the forecasts made or inferred by these statements

1 The Beyond-road segment includes Agricultural, Materials Handling, Quarry, Construction, Defense, and Powersport (snowmobiles, quads, etc.) tires.