Financial information for the three months ended march 31, 2020

• In response to the pandemic, Michelin first focused on safeguarding the health of its employees and their families by implementing all of the recommended precautions. The Group is actively engaging with its host communities in every country, offering its technological expertise, repurposing its production capacity and donating both equipment and funding.

• Global tire demand dropped in the first quarter, as lockdown policies gradually spread around the world, impacting every business segment.

  • Passenger car and Light truck tire markets dropped 15% after carmakers suspended production and consumers went into isolation.

  • Truck tire markets fell by 17% year on year.

  • In the Specialty Businesses, certain mining markets and the Replacement agricultural tire markets showed some signs of resilience.

• First-quarter sales declined by 8.3% year on year at current exchange rates, reflecting:

  • An 11.7% contraction in volumes, which accelerated in March (down 21%)

  • A 2.0% gain from the robust price-mix, led by the strength of the MICHELIN brand

  • A 1.0% increase from changes in the scope of consolidation.

• To mitigate the financial impact of the impending deep recession, in mid-March the Group implemented the following measures:

  • Tracking supply and demand on a weekly basis to keep inventory under control,

  • Reducing capital expenditure by €500 million,

  • Reducing the dividend submitted to shareholder approval by €330 million,

  • Suspending the share buyback program, except for the firm commitments outstanding for 2020,

  • Reducing overhead costs.

• In addition, the Group reaffirms that it has the sources of financing in place to deal with the uncertainty surrounding the crisis. Stress tests, based on volumes declining by between 20% and 35% over the full year, have shown that the Group has sufficient cash and cash equivalents, without drawing down its confirmed back-up lines of credit.

So far, the direction of the pandemic and its economic impacts remain too uncertain to issue any reliable market forecasts and a related profit scenario. Nevertheless, at a time of steeply declining raw material prices, the Group expects to see a more positive net price-mix/raw materials effect, which should slightly attenuate the much more pronounced impact of lower volumes.