Financial information for the six months ended june 30, 2018

• Volumes up 2.6% in the second quarter and, as expected, stable over the first half due to unfavorable prior-year comparatives.

  • Sustained strong growth in the Specialty businesses, led by the buoyant mining, agricultural and construction tire markets

  • Accelerating growth in 18’ and larger Passenger car tire sales in the second quarter (up 14%)

  • Passenger car and Truck tire OE sales growth in line with the markets

  • Focus on margins in the Passenger car and Truck replacement segments, in a persistently competitive market environment

• €264 million positive impact from the net price-mix and raw materials costs effect, reflecting disciplined price management, market share gains in 18’ and larger Passenger car tires and a very good performance by the Specialty businesses.

• Unfavorable currency effect, totaling a negative €218 million.

• Faster external growth, in line with Group strategy, in the Specialty businesses (Fenner, conveyor belts activity and Camso acquisition project), high-tech materials (Fenner) and market access (TBC joint venture with Sumitomo Corp.).

• Free cash flow before acquisitions in line with annual objectives, at a negative €79 million.

• Credit rating agencies have confirmed that the Group’s financial position remains robust after taking planned 2018 acquisitions into account.

Over the second half of the year, replacement markets are expected to remain on an upward trend, regardless of prevailing winter weather conditions. Demand for original equipment tires should remain strong in the Earthmover segment, but lose momentum in the Passenger car and Truck segments. Sales of mining tires should also continue to enjoy strong growth.

For the full year, Michelin confirms its targets of volume growth in line with global market trends, operating income from recurring activities exceeding the 2017 figure at constant exchange rates, and structural free cash flow of more than €1,100 million.