First-Half 2012
High profitability lifted by the Group’s global strategy
Operating income before non-recurring items
of €1,320 million and 12.3% of net sales
Free cash flow at breakeven

2012 Guidance
Clear increase in operating income before non-recurring items
Positive free cash flow

  • €1,320 million in operating income before non-recurring items, up 36% on 2011, reflecting:

    - The Group’s strategy and competitive advantages:
    • Global footprint
    • High margins in the Specialty businesses
    • Premium positioning

    - The quality of its management:
    • Favorable combination over the period of a strong price effect and a limited negative impact from raw materials costs
    • Improved margins in Truck tires
  • Volumes down 8.3%, at a time of weak demand in Europe
  • Free cash flow at breakeven
  • Outlook for full-year 2012

In a still uncertain market environment, mainly in Europe, Michelin’s global presence across every market segment represents a competitive advantage. To strengthen it, the Group is pursuing an ambitious capital expenditure plan that is expected to total around €2 billion over the full year. The outlays are focused on building new capacity in growing markets, improving industrial productivity in mature markets and driving sustained technological innovation.

Confident in its strengths, Michelin confirms its full-year objective of reporting a clear increase in operating income before non-recurring items. Following the decline in demand in the first half, sales volumes are now expected to end the year down by 3% to 5%. However, this should be offset mainly by more favorable raw materials costs and a positive currency effect. Michelin also confirms its objective of generating positive free cash flow, before the impact of the sale of a property complex in Paris.

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Investor Relations

Valérie Magloire
+33 (0) 1 78 76 45 37
+33 (0) 6 76 21 88 12 (mobile)
valerie.magloire@fr.michelin.com

Alban de Saint Martin
+33 (0) 4 73 32 18 02
+33 (0) 6 07 15 39 71 (mobile)
alban.de-saint-martin@fr.michelin.com
Media Relations

Corinne Meutey
+33 (0) 1 78 76 45 27
+33 (0) 6 08 00 13 85 (mobile)
corinne.meutey@fr.michelin.com

Individual Shareholders
Jacques Engasser
+33 (0) 4 73 98 59 08
jacques.engasser@fr.michelin.com