_332 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE Report of the Managers Beyond-road tires: In the Original Equipment markets, which trended upwards over the year, particularly in the first half, Group sales were lifted by market share gains in the premium Agricultural tire segment in Europe and North America, as well as in the Materials Handling segment. On the Replacement side, where demand contracted in 2023, the Group pursued its value-driven approach by targeting the higher value-added segments. The agricultural tracks business, where margins are high and the Group is market leader, maintained its strong growth momentum in the United States, Brazil and other parts of the Americas. Two-wheel tires: Group sales declined from unfavorable comparatives and in a highly competitive environment, dragged down by massive destocking in both the motorcycle and bicycle tire segments. The drawdowns followed on from two post‑Covid years of very brisk demand and favorable financing conditions, which had pushed dealers to maintain high levels of inventory. Sales were nevertheless supported by a favorable price effect. Aircraft tires: As overall air traffic rose above its 2019 levels, both in number of flights and in passenger load factors, the Commercial segment rebounded sharply over the year. Overall, Group sales volumes rose significantly and exceeded 2019 levels. Sales revenue was also lifted by a favorable price effect, reflecting the market value of the Group’s technological superiority and capacity for innovation, as illustrated by the introduction of the new MICHELIN Air X Sky Light tire. The High-Tech Materials business reported growth for the year, driven in particular by the Conveyors business. Momentum was very strong in the first half, but slowed in the second six months due to the extensive inventory drawdowns across the value chain. FCG, which has been consolidated since September 26, 2023, contributed around €50 million to segment sales. In all, sales by the Specialty businesses reporting segment increased by 0.6% year-on-year, to €7,029 million. Exchange rate movements, particularly the decline in the US dollar against the euro, had an unfavorable impact on the segment’s sales. 5.1.2 e) Changes in exchange rates for the main operating currencies At current exchange rates, consolidated sales ended 2023 down 0.9%. The reported decline included the 2.9% (€811 million) negative impact of the decrease against the euro during the year in a large number of currencies, such as the US dollar, which accounts for 40% of consolidated sales, the Chinese yuan and the Turkish lira. Average exchange rate 2023 2022 Change Euro/USD 1.082 1.054 +2.6% Euro/CNY 7.656 7.081 +8.1% Euro/AUD 1.627 1.516 +7.3% Euro/GBP 0.870 0.852 +2.2% Euro/BRL 5.401 5.435 -0.6% Euro/CAD 1.460 1.370 +6.5% Euro/JPY 151.564 137.587 +10.2% Euro/MXN 19.177 21.206 -9.6% Euro/THB 37.617 36.874 +2.0% Euro/TRY 24.899 17.209 +44.7% Sales break down as follows by currency: Currency % Currency % USD 40% TRY 1% EUR 31% THB 1% CNY 6% Other 6% BRL 4% GBP 3% AUD 3% CAD 3% JPY 1% MXN 1% TOTAL 100% 5.1.2 f) Sales by region (in € millions) 2023 2023/2022 Second-half 2023 First-half 2023 GROUP 28,343 -0.9% 14,264 14,079 Europe 9,891 -2.5% 4,990 4,901 of which France 2,502 +0.7% 1,282 1,220 North America (incl. Mexico) 11,098 +1.6% 5,685 5,413 Other regions 7,354 -2.3% 3,589 3,765
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