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Financial information at December 31, 2022

With sales up 20.2% in 2022, Michelin delivered its segment operating income guidance by reaching €3.4 billion


Amid market turbulence and a highly inflationary context, Michelin sales increased to €28.6 billion and segment operating income totaled €3.4 billion. Free cash flow was punctually impacted by inflation and year-end trade timing. Over the 2019-2022 period, the Group has demonstrated the resilience of its business model.

Sales rose 20.2% to €28.6 billion, lifted by firm pricing discipline and fast-growing non-tire sales:

  • Tire markets up slightly in 2022, supported by Original Equipment (from a low comparison basis) and sustained demand from Truck and Mining tire customers.
  • Tire sales volumes down, mainly impacted by the conflict in Ukraine and the Covid consequences in China, and reflecting the Group’s priority set on margin protection.
  • The price-mix effect came to 13.7%, demonstrating the Group’s determination to offset all cost inflation factors.
  • Non-tire sales grew by 22% at constant exchange rates, confirming their strong momentum.
  • A 6.2% positive currency effect, led by the US dollar.

Segment operating income totaled €3.4 billion or 11.9% of sales, driven by dynamic pricing management :

  • Pricing maintained unit margin integrity, offsetting a record €2.7 billion in higher costs.
  • Operating margin reflected a 1.2-point dilutive effect from price increases.
  • Each reporting segment contributed to improved segment operating income, with Specialties’ margin reaching 16.2% in H2 2022.

Reported free cash flow before acquisitions of - €104 million. Structural free cash flow[1] of + €378 million:

  • One-off impact of inflation on working capital, reducing structural free cash flow by around €500 million
  • Q4 penalized by purchasing cuts and stronger December sales for c. -€300m, which will be offset in first-quarter 2023.

Return on Capital Employed (ROCE) reached 10.8% up 0.5 points vs. 2021.

Overall Group performance improved in line with the “Michelin in Motion 2030” strategic plan objectives set for each of its three People, Profit, Planet pillars:

  • Strong and rising employee engagement rate of 83%
  • CO2 emissions for scopes 1 & 2 reduced by 17% vs. 2021
  • Sustainable materials rate in tires reached an average of 30%

Net income reached €2.0 billion for the year. A €1.25 per share dividend will be proposed at May 2023 Annual general meeting.

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

“In a chaotic environment impacted by a combination of systemic crises, Michelin delivered solid results in 2022. With our future in mind, we maintained all of our industrial and R&D investments. I want to recognize our associates’ engagement which contributes year after year to our Group’s successful development.” - Florent Menegaux, Managing Chairman


Based on a soft market demand scenario, Michelin’s objective is to report segment operating income in excess of €3.2 billion at constant exchange rates and free cash flow before acquisitions of more than €1.6 billion.

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