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GROUP MICHELIN A BETTER WAY FORWARD PRESS RELEASE Clermont - Ferrand October 25 , 2021 COMPAGNIE GÉNÉRALE DES ÉTABLISSEMENTS MICHELIN Financial information for the nine months ended September 30 , 2021 Despite an increasingly turbulent environment , Michelin reported € 17.2 billion in sales for the nine months ended September 30 , 2021 , an increase of 15.6 % . The Group maintains its guidance for 2021 . The environment in which the Group is currently operating is characterised by : оо The persistent health crisis . Extensive disruption across every supply chain . Rising raw materials , logistics and , now , energy costs . ○ Worsening labor shortages in North America and , to a lesser extent , in Europe . In this environment , and with less favorable comparatives than in the first half , tire demand saw the following movements in the third quarter : ○ In Passenger Car and Light truck tire markets , a steep 21 % decline in the Original Equipment segment , due primarily to the continued shortage of auto semi - conductors , and stable volumes in the Replacement segment . о In Truck tire markets , a robust 7 % gain outside China and a sharp 30 % contraction in China . Sustained demand in the Specialty businesses , with a particularly strong rebound in the Original Equipment Construction and Agricultural tire segments . With sales of € 6 billion in the third quarter , consolidated sales ended the first nine months at € 17.2 billion , up 15.6 % year on year : о о 14.8 % growth in tire volumes , of which 1.3 % in the third quarter . A 4.1 % increase from the tire price - mix effect , reflecting : price increases implemented to offset rising costs , " continued enhancement of the product mix , with market share gains in MICHELIN - brand 18 - inch and larger tires , a favorable OE / Replacement mix in the Passenger car and Light truck tire business . A 5.8 % increase in non - tire sales . A 3.5 % decrease from the still unfavorable currency effect . " Despite the persistent health crisis , the Group posted a very solid performance , " said Managing Chairman Florent Menegaux . " In this unusual environment , which is still being roiled by major disruptions in our supply chains and sharp spikes in energy and other costs , I would once again like to express my appreciation to all our teams . Thanks to their engagement and hard work , the Group has further demonstrated its resilience and can pursue its ambitious growth strategy . ' " In 2021 , in a still highly disrupted environment , Passenger car and Light truck tire markets are expected to expand by 6 % to 8 % over the year , impacted by semiconductor shortages , while Truck tire markets should rebound by 6 % to 8 % and the Specialty markets should see a gain of 9 % to 11 % . Barring any new systemic effect from Covid - 19¹ and assuming slightly over - market growth in its sales , Michelin maintains its full - year targets of segment operating income in excess of € 2.8 billion at constant exchange rates and structural free cash flow² of more than € 1 billion . The Group Governance : On October 5 , 2021 , Société Auxiliaire de Gestion ( SAGES ) , acting in its capacity as Non - Managing General Partner of Compagnie Générale des Établissements Michelin ( CGEM ) and with the approval of the Supervisory Board , renewed Florent Menegaux as Managing General Partner and Yves Chapot as General Manager for new four - year terms , which will begin when their current terms end at the close of the next Annual Shareholders Meeting , on May 13 , 2022 . 1 Serious supply chain disruptions or restrictions on freedom of movement that would result in a significant drop in the tire markets . 2 Free Cash Flow is stated before dividend payments and financing transactions . It corresponds to net cash from operating activities less net cash used in investing activities , adjusted for net cash flows relating to cash management financial assets and borrowing collaterals . 1/12