Financial information for the three months ended march 31, 2018

• Slight decline in the Passenger car, Light truck and Truck tire markets, as announced:

  • OE demand down in Passenger car and Light truck tires, impacted by the Chinese and North American markets, and robust in Truck tires

  • Replacement demand comparatively weaker due to early buying in Q1 2017

• Sustained strong demand for Specialty tires.

• Favorable 1.1% net impact from the price-mix/volume effect in Q1, in line with the 2018 scenario:

  • Positive 3.4% price-mix effect, led by disciplined price management

  • Volumes down 2.3%, given the particularly strong early buying of MICHELIN brand tires in Q1 2017

• Highly unfavorable 7.7% currency effect caused by the stronger euro.

• Recommended cash offer made for Fenner PLC and joint venture formed with Sumitomo Corporation of Americas, in line with the Group's strategy.

• Roll-out of a new close-to-the-customer organization

Over the full year, demand is expected to increase slightly in the Passenger car and Light truck tire markets and remain stable in the Truck tire markets. The mining tire market should continue to enjoy robust growth.

The currency effect will remain highly unfavorable throughout the year, with a currently estimated €350 million negative impact on operating income from recurring activities (of which -€250 million in the first half).

Against more favorable prior-year comparatives, sales volumes will be lifted by the new closer-to-the-customer organization and a large number of new product launches. The Group will continue to agilely manage prices so as to protect its unit margins in an increasingly competitive marketplace.

Michelin confirms its 2018 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.