Webcast of the Analyst / Investor Conference on April 23, 2018

Documents to download

  • Passenger Car and Light Truck and Truck Markets slightly down as announced
    • Original Equipment demand was down for Passenger Car and Light Truck affected by the Chinese and North American markets, and sustained for Trucks,
    • Replacement demand down due to purchase expectations in the first quarter of 2017.
  • Demand for Specialty tires is still dynamic.
  • Favourable price/mixture/volume net effect in the 1st quarter (+1.1%), in line with the 2018 scenario
    • Mixed-price effect of +3.4%, the result of rigorous price management,
    • Volumes down 2.3%, reflecting particularly strong purchasing expectations for the MICHELIN brand in the first quarter of 2017.
  • Strongly unfavourable exchange rates (-7.7%) due to the strengthening of the Euro.
  • Announcements of a friendly takeover bid for Fenner PLC and conclusion of a joint venture with Sumitomo Corporation of Americas, in line with the Group's strategy.
  • Implementation of a new organization as close as possible to customers.

Guidance 2018 confirmed

In 2018, Passenger Car and Light Truck markets are expected to grow slightly and Truck markets to remain stable. The mining market is expected to continue to grow dynamically.
Currency fluctuations remain strongly unfavorable over the year, estimated to date at €350 million on operating income from ordinary activities, including €250 million in the first half.
Over the rest of the year, the Group's volumes will be driven by a new organization closer to the customer, numerous product launches and benefit from more favorable comparative bases. The Group will continue to agilely manage its prices with the objective of protecting its unit margins in increasingly competitive markets.
Michelin confirms its 2018 objectives of volume growth in line with global market trends, higher operating income from ordinary activities than in 2017, excluding currency effects, and structural free cash flow generation in excess of €1,100 million.

Comparison with 2017

*1 Replacement light truck tires have been transferred from reporting segment 1 (Automotive) to reporting segment 2 (Road transportation).

*2 Construction truck tires have been transferred from reporting segment 2 to reporting segment 3 (Specialty businesses). Reporting segment 3 includes the following businesses: Mining, Earthmover, Construction Truck, Agricultural, Two-Wheel and Aircraft tires and High-Tech Materials

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