5 _327 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE Report of the Managers Replacement In Replacement tires, the global sell-in market (excluding China) ended 2023 down 5% due to extensive destocking by dealers and fleets throughout the year, despite resilient freight demand. Truck tire markets Replacement (in millions of tires) 2023 2022 2023/2022 Secondhalf 2023/2022 Fourthquarter 2023/2022 Thirdquarter 2023/2022 First-half 2023/2022 Secondquarter 2023/2022 Firstquarter 2023/2022 Europe(1) 25.5 27.5 -7% -2% -2% -2% -12% -11% -14% North America(2) 30.5 35.7 -15% -13% -8% -17% -17% -24% -7% South America 16.4 15.5 +6% +3% +1% +4% +9% +22% -3% Asia (excluding China) 22.1 22.6 -3% -3% +2% -9% -2% +3% -6% Africa/India/Middle East 28.9 28.7 +1% -5% +2% -12% +6% +4% +9% TOTAL (EXCL. CHINA) 123.4 130.1 -5% -5% -2% -9% -5% -6% -5% China 41.5 38.1 +9% +1% -1% +2% +20% +27% +13% (1) Including Turkey and Eastern Europe. (2) Including Central America. Michelin estimates. Sell-in demand contracted by 7% year-on-year in Europe, where an economic slowdown, particularly in Northern Europe, has led to a glut in overland freight capacity, exacerbated by the steep reduction in Truck tire inventories across the supply chain throughout 2023. However, most dealer and fleet inventories had returned to normal levels as of year-end. In North America, demand declined by 15% over the year, reflecting both particularly high comparatives and extensive dealer and fleet destocking that brought inventory levels back to normal by year-end. In South America, demand rose by 6% over the year and remains robust, supported in particular by opportunistic dealer buying of low-cost imports. THE REPLACEMENT TRUCK TIRE MARKET IN EUROPE (in millions of new tires – moving 12 months) Michelin estimates. THE REPLACEMENT TRUCK TIRE MARKET IN NORTH AMERICA (in millions of new tires – moving 12 months) Michelin estimates. 2023 2020 2021 2022 22 24 26 28 30 2023 2020 2021 2022 24 26 28 30 32 34 36 38
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