05 Financial performance Report of the Managers 5.1.1 e) Specialty tire markets in 2024 Mining tires: while mining tire demand remains robust over the long term, supported by ever-increasing ore mining needs, in 2024, the market was dampened by extensive inventory drawdowns as supply chains returned to normal and mine operators focused more sharply on cash flow discipline. Demand nevertheless firmed up in the final quarter, as inventories returned to normal by year-end. Beyond-road tires: in these segments, where demand is almost equally divided between Original Equipment and Replacement sales, growth was mixed in 2024, with OE demand falling sharply across the board and Replacement demand demonstrating greater resilience. In Agricultural tires, the highly cyclical OE markets, which account for the lion’s share of demand, plummeted by more than 20% in both the Americas and Europe, dragged down by the reduction in average farming income due to farm commodity prices, adverse weather events and high interest rates. The Replacement market was slightly up year-on-year, but remained roiled by the growing penetration of budget brands, particularly in the Americas. Demand for Construction tires contracted over the year, by around 15% in the OE segment and somewhat less in Replacement, due to the slowdown in homebuilding in both Europe and North America, where inflation and interest rates remain high. Infrastructure tire demand was more resilient in North America, supported by the growth in public spending. The Materials Handling tire segment experienced a similar trend, with an almost 15% drop in OE sales and flat demand in the Replacement segment. Two-wheel tires: in the Motorcycle and Scooter segment, after a first half hurt by poor weather conditions, the second half saw a rebound in demand for sport touring motorcycle and premium scooter tires. The Bicycle tire market remains vulnerable, particularly in the OE segment, which has been consolidating since 2023. Aircraft tires: the commercial aviation market continued to expand, led by rising Chinese demand for international flights, which nevertheless remained a significant 30% lower than in 2019. Fundamentals in the Polymer Composite Solutions market, which closely track mining industry demand over the long term, remain buoyant, but 2024 business was weighed down by comparison with the very high 2023 figures and by the financial imperatives pushing mine operators to postpone their capital projects. On the other hand, demand for service activities, which play a critical role in maintaining and optimizing mining facilities, is continuing to trend upwards. In the other segments (belts, seals, high-tech fabrics and engineered polymers), which serve a variety of market verticals, global demand is still returning to normal levels as built-up inventory is reduced across the value chain. 5.1.2 SALES Consolidated sales amounted to €27,193 million in 2024, representing a 4.1% decline from the €28,343 million reported in 2023. At constant exchange rates, the decline stood at 3.1% for the year. 28,343 27,193 - 1,458 2023 Volumes Scope Prix-mix Non-tire Currency 2024 at current exchange rate 2024 at constant exchange rate + 65 - 50 + 569 - 276 27,649 Tire Businesses 325 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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