Deutsche Bank - November 08&09, 2016

Zurich & Geneva Zurich & Geneva – Deutsche Bank – November 08&09, 2016

A business model strongly linked to consumption Net sales by drivers PC RT

49% Consumers

29%

PC OE

11 % Autos

Breakdown of 2015 Net sales

2

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Manufacturing

11% Commodities

A stronger Group ● RS1 volume growth

● RS2 operating margin

● Margin by RS

● Structural FCF and ROCE

* Before non-recurring items

3

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

November 08&09, 2016

Deutsche Bank

Michelin’s Strategy

4

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Michelin’s value creation strategy Four domains of growth for 2016-2020 ● Provide our customers with tires that truly meet their needs Increase by 20% our revenue from our tire business

● Develop tire-related services and solutions that further enhance mobility Double revenue in our services and solutions business

● Strengthen all the activities that enable our customers to enjoy unique mobility experience Triple the revenue generated by these mobility experience businesses

● Leverage our expertise in high-technology materials – in particular those involving elastomers Be proactive and assert our technological leadership in the area of high technology materials

5

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

MICHELIN CrossClimate, “the ideal ‘all-season’ tire”

“There is only one candidate that meets all the requirements of an ideal, uncompromising ‘all-season’ tire,” says

● MICHELIN summer tire with winter certification

magazine, “and that’s the

MICHELIN CrossClimate.”

● Best ‘all-season’ tire ranked by

6

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Innovation aimed at delivering total performance Up to 32% more longevity vs Tier 1 Competitors in Europe (MICHELIN = base 100) MICHELIN EnergyTM MICHELIN Primacy

MICHELIN Pilot Sport

MICHELIN Agilis

MICHELIN Alpin

MICHELIN CrossClimate

Premium competitors average result

70 Broadline 1

80

71

70

Sport 3

Light truck 4

Winter 5

68 High Performance 2

MICHELIN CrossClimate: “Total cost of ownership champion” according to Source : Ranking based on the results of tests conducted on several times sizes by independant test centers (Dekra 2012-2013-2014, TÜV SUD Product Service 2010-2011) and press tests (Autobild 2011-2014) (1) Broadline on 14"/15"/16" – (2) High Performance on 16"/17" – (3) Sport on 18" – (4) Light truck on 16" – (5) Winter on 15"/16"/17" – (6)Test conducted by TÜV SUD, in July and August 2016, on dimension 205/55R16 on VW Golf 7 vs Premium A/S Competitors

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Zurich & Geneva – Deutsche Bank – November 08&09, 2016

83 All-Season 6

100

J.D. Power OE Tire Award History ● Since 1989 in the United States, Michelin and BFGoodrich have won 63 of the 76 awards for OE Tire Satisfaction ● This highlights Michelin’s commitment to total performance throughout the life of the tire

5x more than the competition combined!

8

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Outperforming new products allowing increased mining productivity 3 MAJOR INNOVATIONS: NEW COMPOUNDS

+

MICHELIN XDR 250 50/80 R 57 ● The most productive tire with at least 25% more TKPH* … with no trade-off on tire life

MICHELIN XDR 3 40.00 R 57

* Ton Kilometer Per Hour

9

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

A NEW TREAD PATTERN

+ CORROSION-PROOF CABLES

Products, distribution and services matching customer needs to capture growth opportunities

Services

• Offering innovative services to improve mobility Distribution

Product offer

Innovation

• Reinforcing our market access through a vast worldwide dealer network and new distribution channels • Developing profitable Tier 2 / Tier 3 brands to better serve Distribution • Strengthening the MICHELIN brand technological leadership CROSSCLIMATE

10

EFFITIRE™

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

TWEEL

New materials play a dominant role in our innovation For several reasons: Strong impact on the performances of our products

11

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Less industrial intrusiveness

Aligned with sustainable development ambitions

2017-2020 levers ● Above market growth in all divisions and positive product mix ● Increased Net Sales and EBIT contribution from service and solutions ● Acceleration in competitiveness ambition ● Capital expenditure in line with scenario already announced ● Initiatives to foster a new Group mindset ─ Putting our customers at the heart of our business ─ Leveraging the digital revolution ─ Simplifying our structures and processes ─ Empowering employees

12

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

November 08&09, 2016

Deutsche Bank

2020 ambitious value creation targets

13

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2015-2020 scenario: a growing worldwide demand PC OE&RT market projection

TB OE&RT market projection

(in millions of units)

(Radial & Bias in millions of units)

CAGR ~ 2.5%

1.690

o/w ≥17’ CAGR ~ 7%

CAGR ~ 1.5%

200

184

1.495

2015

14

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2020e

2015

2020e

Agriculture: a slow worldwide growth assuming stable grain prices (base 100 in 2015, in tonnes)

~104 / 108

100

~100

~100

2015

2016e

2017e

* OE & RT in Europe and North America

15

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2020e

Mining: 2016 last year of destocking (base 100 in 2009, in tonnes)

134

138

121 100

2009

16

111

109

2010

~115 / 125

121

2011

2012

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2013

2014

2015

~101

2016e

~105 / 115

2017e

2020e

New 2017 – 2020 Competitiveness Plan: accelerating to ~€300m per annum

Plan 2012-2016 In €m

Plan 2007-2010 achieved

Target: €1,200m

Plan 2017-2020 2012-2015 achieved

2016(e)

SG&A

251

421

500/550

Manufacturing Costs

406

394

450/500

Materials

365

149

150/200

1,022

964

Total

17

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

~250

~1,200

Investing to create value Succeed in our priority Capex and M&A investment to capture growth ● In the supply chain, to improve customer services (IS, logistics centers)

Reducing the gap between capital expenditure and depreciation (in € bn, at constant exchange rates) 1.8

1.7 to 1.8 1.6 to 1.7

● In growing markets: PC premium tires, in North America and in Asia ● In Digital services

1.6 to 1.7 1.5

1.4

1.4

2016e

2017e

1.3

● In raw materials and semi-finished products

2015 CAPEX

18

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Depreciation

2020e

2015-2020 organic scenario: Consistency of 2020 financial targets In € millions

PC&TB abovemarket growth Mining market rebound

Manufacturing efficiency offsetting inflation

SG&A efficiency beating inflation

Increased contribution services & solutions

>> 3,000 D&A

Manufacturing

2,577

Services

SG&A

Volume & Mix

2015

19

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2020e

Reporting segment operating margin guidance* for 2016-2020

2016-2020 target ranges**

RS1

RS2

RS3

Between 11% and 15%

Between 9% and 13%

Between 17% and 24%

* From recurring activities ** At constant scope of consolidation and raw materials prices, and with markets expanding by a CAGR of 2.5% in PC tires and of 1.5% in Truck tires

20

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2020: ambitious value creation targets Deliver over €1bn of structural Free cash flow from 2020*

Deliver a ROCE (after tax) ≥ 15% from 2020*

(in € millions)

(in %) 17.3%

>>1,000 749

≥ 21%

17.6%

15.8%

833 10.0%

517 10.9%

11.9%

12.2%

≥15%

5.4% 2011

2013

2015

2020 target*

2009

2011

2013

ROCE after tax * At constant scope of consolidation

21

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

ROCE before tax

2015

2020 target*

2015-2016 shareholder return: €978m in dividends and €750m in share buybacks ● Share buyback program ─ €451m committed in 2015 ─ €150m committed in H1 2016  1,757,440 shares bought back at an average price of €85.35

─ A new €150m tranche launched in H2 2016  As of September end, 841,490 shares bought back at an average price of €93.27

● Total Shareholder Return €240

─ At least 35% of net earnings excluding non recurring items

22

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

€222

€220 €200 €180

€184

€185 €169

€165

€160

€147

€160

€151

€140 €120

● Pay-out commitment

€221

€120

€100 €100 Fin End2012 2012 Fin End2013 2013 Fin End2011 2011 Fin End2014 2014 Fin End2015 2015

Michelin

CAC 40

Juin June 2016 2016

November 08&09, 2016

Deutsche Bank

2 23

2016 guidance confirmed

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Adjusted 2016 markets outlook

PASSENGER CAR: ~ +2%

TRUCK: ~ -2%

Old: +1% / +3 %

Old: -2% / 0%

Old: -2% / -5%

● OE: Growth in Western Europe and in India, decrease in North America on high levels ● RT: Increasing markets in Western Europe and in North America on high low-tier imports. Down in China, the world's largest market

● Mining tires: demand down as mining companies complete inventory drawdowns

● OE: Growth in mature zones, China and India

● RT: Demand momentum in Western Europe and North America driven by low tier segments. Sustained growth in China

24

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

SPECIALTY: -4% / -5%

● Earthmover slowdown ● Agricultural tires*: declining OE markets ● Aircraft** and Two-Wheel*** tires: continued growth * Europe and North America ** Commercial aircraft *** Motorcycle tires in Europe, USA and Japan

2016 guidance confirmed 2016 Volumes

Above-market growth

Operating income from recurring activities at constant exchange rates

> 2015*

Structural FCF

> €800m

* ≥ for H2

25

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Updated EBIT scenario based on the improved Price-mix/Raw Materials and on September data H1 2016 (in € millions)

26

FY 2016 old

new

Raw Materials

+339

~ +450

~ +550

Net Price-mix / Raw Materials

+115

Positive

Positive > +150

Competitiveness plan / inflation

+13

Neutral

Neutral

Currency effect

-98

~ -200

~ -160

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

27

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

November 08&09, 2016

Deutsche Bank

Appendices

28

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

PC tires: growth in Western Europe and North America driven by low-tier segments, growing emerging markets excl. South America Passenger car market at September 30, 2016 (YoY in %, in number of tires) North America

+2%

RMA pool*

-2%

+6%

Europe excl. Russia & CIS +5 %

RMA non pool*

ETRMA pool**

+1% Asia excl. India

+5%

+7 %

+1 %

+4%

+1%

ETRMA non pool**

GLOBAL MARKET

+3% Africa/India/Middle East

+4%

+8%

+4%

OE

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

South America

-4% -16%

* RMA pool: Rubber Manufacturers Association members ** ETRMA pool: European Tire & Rubber Manufacturers Association members Source Michelin

29

Europe incl. Russia & CIS

RT

+4%

+2%

Truck tires: global market down driven by Americas OE and China Truck tires market at September 30, 2016 (YoY in %, in number of new tires)

GLOBAL MARKET North America

Europe incl. Russia & CIS

Europe excl. Russia & CIS

-1%

RMA pool* -2%

-16%

+4%

+14%

+4%

RMA non pool*

Asia excl. India

+4%

+4%

Africa/India/Middle East

South America -0%

+2%

+8% +1%

-1%

-5%

* RMA pool: Rubber Manufacturers Association members Source Michelin

30

-2%

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

OE

RT

-21%

Focused pricing management and better mix supporting net sales and driving better margins YoY change (in € millions and %)

+217

15,806

+86 Change in scope of consolidation* (+0.5%)

9m 2015 Net sales * Meyer Lissendorf , Blackcircles, BookaTable

31

-275

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

-363 Volumes (+1.4%)

Price-Mix (-1.7%) o/w mix -0.1%

-2.1% 15,471

Currency effect (-2.3%)

9m 2016 Net sales

Improvement in prices and the mix in a lackluster Q3 market environment YoY quarterly change (in %)

Volumes Q1

Q2

Q3

Q4

Q1

Price-Mix Q2

Q3

Q1

2016

2015

Q2

Q3

Q4

Q1

Currency effect Q2

Q3

Q1

2016

2015

1.5

3.5

4.2

3.7

Q4

Q1

Q2

Q3

2016

10.7 5.7 3.8

1.4

-0.9 -3.6 -5.1

32

Q3

2015 9.7

3.4

Q2

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

-2.4

-2.5

-1.3

-2.7

-1.0

-1.9

-1.3 -3.7

New plant in Léon, Mexico to produce premium Passenger car and Light truck tires ● Capacity: ─ First tranche: 4 to 5 millions MICHELIN PC tires ─ Approx. 60,000 tonnes ─ 80% of tires produced are 18’ and more

● Investment: ─ €450m including semi-finished

● Target: ─ Automakers in Mexico ─ North American premium market

● First tire to roll off the production line at the end of 2018

33

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Brazil: Michelin acquires Levorin ● Brazilian manufacturer of bicycle and motorcycle tires. ─ 2015 net sales: €135 million ─ 2,000 employees at its two plants in Sao Paulo and Manaus

● Specialized in the commuter segment in Brazil.

● Strategic objectives for Michelin: ─ consolidate its presence in Brazil in the significant, and expanding, commuter segment ─ strengthen the global development of its 2 Wheel tire ranges and complement the range of tires currently offered, which are historically oriented towards the high-end 2 Wheel leisure market

● Subject to the approval of the Brazilian competition authorities 34

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

H1 2016 Operating income of €1.4bn, up a sharp €241m at constant exchange rates ● Volumes up 2.5%, beating the market in every segment ● 13.7% operating margin from recurring activities, up 1.7 points ● Changes in the price mix / raw materials effect had a positive impact of €115m, thanks to effective management and a favorable basis of comparison ● €155m in gains from the competitiveness plan offset inflation ● Positive free cash flow of €8m, representing a €108m improvement from first-half 2015 before acquisitions

35

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Operating income up €241m at constant exchange rates YoY change in operating income from recurring activities* (in € millions) +€241m excluding forex -224

+339

+11%

-142

+155

-49 +159

1,262

Raw materials

Price-mix o/w mix : -61

Inflation Competitiveness

Depreciation

+3

-98

Other

1,405

Currency

Volumes

+115

+13

H1 2015 * To make its operating performance easier to understand and analyze, Michelin now presents "Operating income before non-recurring income and expenses" as "Operating income from recurring activities" and has refined its definition.

36

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

H1 2016

Improvement in unit margin due to effective pricing management over time Net effect of price mix / raw materials on operating income (in € millions ) 2010

2012

2011

2013

2014

+103

+118

2015

H1 2016

+1,133

+264 +115

-93 -266

● H1 2016: price mix / raw material effect was a negative €20m for indexed businesses and a positive €135m for the non indexed businesses

37

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Competitiveness plan on track to reach €1.2bn target Gain objectives* 2012-2016: €1,200m SG&A

Raw Materials

178

Total Gain 2012H1 2016

Total Gain 2012H1 2016

* Before inflation and including avoided costs

38

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

1,119

Manufacturing - Transport 482

459

TOTAL

Total Gain 2012H1 2016

155

Gain H1 2016

261

Gain 2015

238

Gain 2014

275

Gain 2013

190

Gain 2012

Solid cash generation committed to shareholders ● In € millions 1,000 1000 900 800

> 800 833

792

749

700

600

717

450

300

599 206

517

500

87

400 300 200 100

314

438

464

463

522

378

2012

2013

2014

2015

2016e

147

0

2010

2011 Dividends

39

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Share buy back

Structural Free Cash Flow

Profitable growth ambition ● Base 100 in 2010 180 170 160 150 140 130 120 110 100 90 80

+52%

+280bp +4%

2010 Volume growth

40

>> €3,000 bn by 2020

2011

2012

2013

2014

Operating margin from recurring activities

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2015

Above market growth

2020

Operating result from recurring activities

A stronger Group with improving profitability Operating profit and margin* & ROCE 3,000 3,000

12.8% 11.9%

2,500 2,500

10.5%

9.7% 2,000 2,000

9.5%

9.8%

9.4% 11.3%

12.2% 12.2%

13.7%

5.6%

10%

11.0%

8% 5.4%

2,423

5.8%

1,695

1,645

500 500

920

1,945

2,234

6%

2,577 2,170 1,405

4% 2%

862

00

0% 2007

2008

2009

Operating profit (in €m) * Before non-recurring items

41

14% 12%

5.6%

1,500 1,500

1,000 1,000

10.9%

11.1% 11.1%

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2010

2011

2012

2013

Operating margin (as a % of net sales)

2014

2015

H1 2016

ROCE after tax (in %)

Growing Passenger car margin through product innovation, mix and improving customer service 15%

Operating profit and margin* 13.8% 1,600 1,600 11.5%

1,400 10.4%

1,200 1,000

10.2% 9.4%

9.2%

800

10.5%

9.3% 1,384

830

370

200

1,014

1,018

1,033

1,090

1,010

2010

2011

2012

2013

2014

814

661

4.3%

0 0 2007

2008

2009

Operating profit (in €m)

Operating margin ( as a % of net sales)

* Before non-recurring items ** At constant scope of consolidation and raw materials prices, and with markets expanding (CAGR of 2.5%)

42

11%

8.0%

600

400

New 2016-2020 target range**

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2015

H1 2016

Strong Truck profitability growth through competitiveness, product & service innovation and customer focus Operating profit and margin* 13% 1,200 1,000 1,000

10.4%

800

7.8%

8.1%

444

503

495

2012

2013

2014

7.6% 400

4.4% 427

0 2007

3.5%

2.5% 138

-69

2008

-1.5% 2009

-200

249

233

2010

2011

Operating profit (in €m)

Operating margin ( as a % of net sales)

* Before non-recurring items ** At constant scope of consolidation and raw materials prices, and with markets expanding (CAGR of 1.5% )

43

9%

6.6%

600

200

9.9%

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

New 2016-2020 target range**

645 288

2015

H1 2016

Specialty: resilient profitability in a challenging environment Operating profit and margin* 900

26.0%

24%

800 700 21.5%

600 500 400

17.8%

17.8%

17.9%

388

412

100

13.3%

645

574

432

18.6%

2007

2008

2009

2010

303

Operating profit (in €m)

2011

2012

2014

Operating margin ( as a % of net sales)

* Before non-recurring items ** At constant scope of consolidation and raw materials prices, and with markets expanding Zurich & Geneva – Deutsche Bank – November 08&09, 2016

2013

2015

New 2016-2020 target range**

17%

548

270

0

44

20.6%

19.3%

946

694

300 200

20.6%

H1 2016

Strong operating profit growth through diversified and worldwide footprint Group operating profit*, by Reporting Segment (in € millions and %) 2,577

2,423 1,695

2,234

1,945 43%

2,170 54% 51%

23%

23%

25%

29%

26%

21%

20% 22%

2013

2014

2015

H1 2016

52% 60%

18% 12%

15% 25%

36%

2010

2011

39% 2012 RS1

* Before non-recurring items

45

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

1,405

49%

RS2

RS3

58%

Disclaimer "This presentation is not an offer to purchase or a solicitation to recommend the purchase of Michelin shares. To obtain more detailed information on Michelin, please consult the documentation published in France by Autorité des marchés financiers available from the http://www.michelin.com/eng/ website.

This presentation may contain a number of forward-looking statements. Although the Company believes that these statements are based on reasonable assumptions at the time of the publication of this document, they are by nature subject to risks and contingencies liable to translate into a difference between actual data and the forecasts made or induced by these statements."

46

Zurich & Geneva – Deutsche Bank – November 08&09, 2016

Contacts

Valérie MAGLOIRE Matthieu DEWAVRIN Humbert de FEYDEAU +33 (0)1 78 76 45 36 27, cours de l’île Seguin 92100 Boulogne-Billancourt - France [email protected]

47

Zurich & Geneva – Deutsche Bank – November 08&09, 2016