Net sales

Analyst / Investor conference audiocast on October 19, 2016

€15.5 billion in nine-month net sales,
supported by faster-than-market growth in volumes and a pricing policy designed to capture the full value of product innovation
2016 guidance confirmed

  • Volumes up 1.4% in the first nine months, outperforming the markets:
    • In the third quarter, Passenger car, Light truck and Truck tire demand was flat to slightly down in the mature markets.
    • Demand was mixed in the new markets, with sustained strength in the Chinese Passenger car/Light truck tire segment and a sharp contraction in South America.
    • The specialty tire markets were shaped by a slowdown in the Agricultural segment, a decline in demand for original equipment Earthmover tires and continued destocking by the mining companies.
  • Price-mix down 1.7%, marking an improvement attributable to:
    • A pricing policy designed to capture the full value of Michelin's technological leadership.
    • The success of its new customer offers.
    • In particular, an 11% increase in volumes in the premium 17-inch and larger segment

2016 guidance confirmed

Over the last three months of the year, markets are expected to remain mixed, in line with the trends observed in the first nine months.

In this market environment, given the sustained deployment of the Group's pricing strategy and the estimated €550-million positive impact from raw materials costs, the price-mix/raw materials effect is expected to add more than €150 million to operating income for the year.

For the full year, Michelin is confirming its targets of volume growth outpacing global markets, an increase in operating income from recurring activities at constant exchange rates, and structural free cash flow of more than €800 million.

Comparison over 2015

Datas

In million of euros

1 Earthmover, Agricultural, Two-Wheel and Aircraft tires; Michelin Travel Partner and Michelin Lifestyle.