Financial information at December 31, 2021

The Michelin Group delivered segment operating income of €2,966 million and a margin back in line with 2019, at 12.5%, demonstrating once again its strength and business model resilience.

  • Sales rose by 16.3% to €23,795 million and segment operating income stood at €2,966 million, or 12.5% of sales:
    • Tire volumes up 11.8% and non-tire sales up 7.7%,
    • Very favorable Original Equipment/Replacement business mix in the Automotive segment, with market share gains in 18-inch and larger tires confirming the Group’s leadership in technological innovation,
    • Dynamic price management in the non-indexed businesses, leveraging the brand’s pricing power and offsetting cost inflation factors,
    • Specialty businesses hit harder by labor shortages, supply chain disruptions and cost inflation.
  • €1.5 billion in free cash flow before acquisitions, or €1.8 billion in structural free cash flow[1] adjusted for higher raw materials costs.
  • The Group’s performance in 2021 was in line with its “Michelin in Motion” strategic plan’s 2030 objectives set for each of its three pillars: People, Profit, Planet.
    • Percentage of women in management positions increased to 28.9%,
    • Ongoing integration of acquired companies, generating €41 million in additional synergies and bringing the annualized total to €122 million,
    • Sustained deployment of the simplification and competitiveness plans,
    • A 10.3% return on capital employed,
    • Environmental commitments strengthened with the signing of the Race to Zero agreement.
  • €1,845 million in net income, up €1,220 million, and a recommended dividend of €4.50 per share.

[1] Structural free cash flow corresponds to free cash flow before acquisitions, adjusted for the impact of changes in raw material costs on trade payables, trade receivables and inventories.

In 2021, Michelin delivered very good results in extremely difficult conditions, while maintaining the priority to protect its employees. I would like to warmly thank all our employees who, every day, are successfully meeting the many challenges we face. In line with our drive to share the value created by our Group, we will reward their dedication in these exceptional circumstances, in particular through a substantial increase in variable compensation for the year. With these 2021 results, our Group has once again demonstrated its strength and resilience. We are confidently looking forward to the continued deployment of our Michelin in Motion strategy.

Florent Menegaux, Chief Executive Officer, Michelin Group

Outlook for 2022

In 2022, in a still highly unsettled environment, Passenger car and Light truck tire markets are expected to expand by 0% to 4% over the year, Truck tire markets by 1% to 5%, and Specialty markets by 6% to 10%. In this market scenario, and barring any new systemic impact from Covid-19[1], Michelin’s objective is to report full-year segment operating income in excess of €3.2 billion at constant exchange rates[2] and structural free cash flow of more than €1.2 billion.

[1] Serious supply chain disruptions or restrictions on freedom of movement that would result in a significant drop in the tire markets.

[2] See 2021 results presentation available on www.michelin.com

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