Financial information at December 31, 2022

Amid market turbulence and a highly inflationary context, Michelin sales increased to €28.6 billion and segment operating income totaled €3.4 billion. Free cash flow was punctually impacted by inflation and year-end trade timing. Over the 2019-2022 period, the Group has demonstrated the resilience of its business model.

Sales rose 20.2% to €28.6 billion, lifted by firm pricing discipline and fast-growing non-tire sales:

• Tire markets up slightly in 2022, supported by Original Equipment (from a low comparison basis) and sustained demand from Truck and Mining tire customers.

• Tire sales volumes down, mainly impacted by the conflict in Ukraine and the Covid consequences in China, and reflecting the Group’s priority set on margin protection.

• The price-mix effect came to 13.7%, demonstrating the Group’s determination to offset all cost inflation factors.

• Non-tire sales grew by 22% at constant exchange rates, confirming their strong momentum.

• A 6.2% positive currency effect, led by the US dollar.

Segment operating income totaled €3.4 billion or 11.9% of sales, driven by dynamic pricing management :

• Pricing maintained unit margin integrity, offsetting a record €2.7 billion in higher costs.

• Operating margin reflected a 1.2-point dilutive effect from price increases.

• Each reporting segment contributed to improved segment operating income, with Specialties’ margin reaching 16.2% in H2 2022.

Reported free cash flow before acquisitions of - €104 million. Structural free cash flow[1] of + €378 million:

• One-off impact of inflation on working capital, reducing structural free cash flow by around €500 million

• Q4 penalized by purchasing cuts and stronger December sales for c. -€300m, which will be offset in first-quarter 2023.

Return on Capital Employed (ROCE) reached 10.8% up 0.5 points vs. 2021.

Overall Group performance improved in line with the “Michelin in Motion 2030” strategic plan objectives set for each of its three People, Profit, Planet pillars:

• Strong and rising employee engagement rate of 83%

• CO₂ emissions for scopes 1 & 2 reduced by 17% vs. 2021

• Sustainable materials rate in tires reached an average of 30%

Net income reached €2.0 billion for the year. A €1.25 per share dividend will be proposed at May 2023 Annual general meeting.

[1] Structural free cash flow corresponds to reported free cash flow before acquisitions, adjusted for the impact of changes in raw material costs on trade payables, trade receivables and inventories.