05 Financial performance Report of the Managers 5.1.2 d) Specialty businesses and related distribution – Analysis of sales Mining tires: in an ore market that remains on a long-term growth trend impelled by rising demand for metals, particularly to support the energy transition, volumes sold were dampened by a number of short-term factors. The inventory drawdowns undertaken by certain mining companies in second-half 2023 continued in 2024 before gradually petering out at year-end. Business in Europe and Central Asia slowed considerably after export controls were further tightened. Lastly, Central American operations were hurt by the closure of a large mine in Panama. Despite the impact of these one-time factors, mining tire sales rose by volume and in value, led by a very positive operating performance and a product and service portfolio well aligned with customer priorities for the productivity and safety of their operations. This helped to drive market share gains and significant growth in service volumes sold. Beyond-road tires: sales of agricultural, materials handling and construction tires were severely impacted by the steep decline in Original Equipment markets in every segment. This did not prevent the Group from launching new products demonstrating its technological leadership, such as the MICHELIN CEREXBIB 2 tire for New Holland’s new CR11 combine, which significantly reduces soil compaction and helps to meet emerging farming challenges. In the more mixed Replacement markets, the Group pursued its strategy of prioritizing key segments. In agricultural tires, for example, it gained market share in Europe, primarily by targeting sales of tires for high-power tractors, while in the construction segment, it withdrew from bias tires and tracks for compact equipment to focus on radial technology and announced the sale of two production plants and the CAMSO brand. Aircraft tires: in markets that were slightly up for the year, the Group increased its sales, particularly in mature regions. Operating difficulties encountered by airframe manufacturers slowed growth in Original Equipment demand, which improved the business line’s sales mix by tilting it to Replacement. Polymer Composite Solutions sales declined somewhat yearon-year, mainly due to comparison with the record highs reported in 2023, particularly in the conveyor belt business. In 2024, in an economy pressured by rising interest rates, mining companies postponed certain capital projects, which weighed on sales of new conveyor belt systems. However, this impact was partially offset by sales of maintenance services. The other segments (seals, belts, engineered fabrics, etc.) held sales firm overall, in markets that retain their medium- and long-term growth prospects despite temporary downturns. In all, sales by the Specialty businesses reporting segment decreased by 9.4% year-on-year, to €5,927 million. Volumes sold, which only concern Specialty tires, declined by 9.1% over the year. 5.1.2 e) Changes in exchange rates for the main operating currencies At current exchange rates, consolidated sales ended 2024 down 4.1%. This reported decline includes the negative 1.0% (€276 million) impact of the decrease against the euro in the Chinese yuan, the Brazilian real and many other currencies over the year. The average euro exchange rate for the US dollar, which accounts for nearly 40% of consolidated sales, remained relatively unchanged versus 2023. Average exchange rate 2024 2023 Change Euro/USD 1.082 1.082 +0.1% Euro/CNY 7.788 7.656 +1.7% Euro/BRL 5.802 5.401 +7.4% Euro/CAD 1.482 1.460 +1.5% Euro/GBP 0.847 0.870 -2.7% Euro/AUD 1.639 1.627 +0.7% Euro/JPY 163.659 151.564 +8.0% Euro/MXN 19.705 19.177 +2.8% Euro/CLP 1,020.210 905.955 +12.6% Euro/THB 38.152 37.617 +1.4% Sales break down by currency as follows: Currency % Currency % USD 39% CLP 1% EUR 32% THB 1% CNY 6% TRY 1% BRL 4% SEK 1% CAD 3% TWD 1% GBP 3% CHF 1% AUD 3% Other 2% JPY 1% MXN 1% TOTAL 100% 329 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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