Financial information at march 31, 2014

• Recovering Passenger car and Light truck and Truck tire markets, except in Eastern Europe, with sustained drawdown in mining customer inventory, as expected.

• Volumes up 3.4%, reflecting:

  • The performance of the MICHELIN brand.

  • The fast momentum in original equipment sales.

  • The growth in the global Truck tire business.

  • The growth in the Agricultural, Two-Wheel and Aviation tire businesses, which offset weak mining tire sales.

• 
  Price mix slightly negative, due to:

  • The impact of indexation clauses and managed price repositionings, in a still favorable raw materials cost environment.

  • Price increases that attenuated the unfavorable impact of certain currencies.

  • The effectiveness of the premium strategy.

• A 4.6% negative currency effect, attributable to the strong euro.

With tire demand rising as fast as expected in the first quarter of 2014, except in Eastern Europe, Michelin maintains its objective of around a 3% increase in volumes over the full year.

The Group aims to improve its gross unit margin, while preserving a positive balance between pricing policy and raw materials costs. The competitiveness plan is being deployed on schedule.

Against this backdrop, Michelin is confirming its 2014 objectives of i) an increase in operating income before non-recurring items (at constant exchange rates); ii) a more than 11% return on capital employed; and iii) structural free cash flow of more than €500 million along with a capital expenditure program maintained at around €2 billion.