Financial information for the year ended december 31, 2012

• Operating income before non-recurring items up 25% to €2,423 million, reflecting:

  • An efficient pricing policy.

  • A global footprint.

  • Structurally high margins in specialty tires.

  • Restored profitability in the Truck tire business, despite a sharp market contraction.

• Volumes down 6.4%, with demand remaining flat in the second half.

• More than €1 billion in free cash flow, demonstrating:

  • The Group’s ability to structurally generate cash

  • The effective integration of value creation into every unit’s objectives

• 12.8% return on capital employed.

• Proposed dividend of €2.40 per share, subject to approval at the Annual Shareholders Meeting of May 17, 2013.

Given its global footprint, Michelin expects to hold volumes steady in 2013, in a market environment that is uncertain in mature markets but still expanding in the new ones.

Raw materials prices are expected to remain stable in the first half, adding a further €350-400 million to operating income. This will be partly offset, however, by the impact of indexation clauses on the original equipment and earthmover businesses.

The capital expenditure program totaling around €2 billion will support Michelin’s growth ambitions by bringing new production capacity on stream in the growth regions, whose start-up will weigh on costs. The program is also designed to improve competitiveness in mature markets and drive technological innovation.

Confident in its competitive strengths and thanks to the launch of an ambitious project to improve its management systems, Michelin confirms its 2015 objectives and for 2013 expects to report stable operating income before non-recurring items at constant exchange rates, a more than 10% return on capital employed and positive free cash flow.