Financial performance Report of the Managers 05 The year-on-year change reflected the combined impact of the following factors: n a 5.1% decline in sales volumes, stemming primarily from: l the very low output in all the Group’s Original Equipment markets, l cyclical or one-off factors that particularly impacted the Specialty businesses, such as strict export controls, inventory drawdowns by certain mining operators and the closure of a large mine; l the Group's selective strategy of focusing on markets and segments that leverage the full value of its innovations and technologies; n a 2.0% increase from the positive price-mix effect. Prices added a slightly favorable €31 million to full-year sales, overcoming the negative €105 million impact in the first half from applying raw materials-based and other contractual indexation clauses. The highly positive €538 million mix effect reflected the priority focus on the highest value products (MICHELIN brand tires, 18inch and larger Passenger car tires, agricultural tracks, etc.) and the efficient management of the geographic and the Replacement/Original Equipment market mixes; n a 1.0% decrease from the negative currency impact, due to the increase in the average annual euro exchange rate against the Turkish lira, the Brazilian real, the Chilean peso and most other operating currencies except the US dollar, where it remained stable over the year; n the lack of any impact from the non-tire businesses, as the 0.2% increase from changes in the scope of consolidation (mainly the inclusion of FCG on September 26, 2023) offset the slight decline in aggregate non-tire sales compared with the extremely high 2023 comparative (lifted by record sales of conveyors and other products and services). (in € millions and %) 2024 Second-half 2024 Fourthquarter 2024 Third-quarter 2024 First-half 2024 Secondquarter 2024 First-quarter 2024 SALES 27,193 13,712 7,022 6,690 13,481 6,839 6,642 Change, year-on-year -1,150 -552 -169 -383 -598 -279 -319 Volumes -1,458 -838 -333 -505 -620 -333 -287 Price-mix +569 +413 +205 +208 +156 +106 +50 Currency effect -276 -110 -26 -84 -166 -34 -132 Scope of consolidation +65 +6 +22 -16 +59 +7 +52 Non-tire sales -50 -23 -37 +14 -27 -25 -2 Change, year-on-year -4.1% -3.9% -2.4% -5.4% -4.2% -3.9% -4.6% Volumes -5.1% -5.9% -4.6% -7.1% -4.4% -4.7% -4.1% Price-mix +2.0% +2.9% +2.9% +2.9% +1.1% +1.5% +0.7% Currency effect -1.0% -0.8% -0.4% -1.2% -1.2% -0.5% -1.9% Scope of consolidation +0.2% 0.0% +0.3% -0.2% +0.4% +0.1% +0.7% Non-tire sales -0.2% -0.2% -0.5% +0.2% -0.2% -0.4% 0.0% 5.1.2 a) Sales by reporting segment Segment information is presented according to the following three operating segments: n Automotive, Two-wheel and related distribution; n Road transportation and related distribution; n Specialty businesses and related distribution. In the following review, 2023 data have been restated to reflect changes in the scope of the reporting segments in 2024. These changes mainly concerned the Two-wheel tire business, which is now consolidated in the Automotive, Two-wheel and related distribution segment, in alignment with the Group organization. The Specialty businesses segment includes the Mining, Beyondroad and Aircraft tire activities, as well as the Polymer Composite Solutions business. The Connected Solutions businesses are included for the most part in the Road transportation and related distribution segment. Operating segment performance is measured primarily on the basis of sales and segment operating income, according to the same measurement principles used in the consolidated income statement. 326 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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