Agenda
- Volume outlook by vehicle type and region – OEM (original equipment manufacturer) and aftermarket trends, the impact of the EV (electric vehicle) shift and the semiconductor shortage's short-term implications
- Pricing expectations in light of raw material price inflation, highlighting opportunities to pass costs on to customers
- Distribution network shifts and D2C vs dealership trends
- Operating income outlook and improvement opportunities
Questions
1.
What is your outlook for volume recovery for SR1? There was a big drop in volumes due to coronavirus. What are your thoughts on the recovery phasing in 2021-23?
2.
What do the regional dynamics and trucking being strong in China, which is not a particularly strong region for Michelin, mean for revenue recovery for Michelin specifically in SR1?
3.
When do you think we might expect a full recovery to 2019 levels for SR1?
4.
How does the recovery outlook differ in the truck segment, SR2 vs SR1?
5.
Are the estimates that you put forward for SR1 and SR2 likely to fall in line with the figures that you shared today in the full year?
6.
What is your 2022 outlook for passenger cars?
7.
What is your full-year outlook for performance in SR3, the specialities division?
8.
What is the medium-term outlook in light of the shift towards EVs [electric vehicles]? The markets suggest that there could be strong tailwinds due to the EV switch. How do you think the EV switch is likely to impact top line for players such as Michelin?
9.
You mentioned that Goodyear shares are 3-4 times higher at 18 inch and above. Was that correct?
10.
Do you expect price increases for raw material? We’re hearing different things from different manufacturers around the headwinds associated with raw material price increases.
11.
Where are the areas of growth in sourcing raw materials?
12.
We’re hearing a lot from Michelin about its local-to-local strategy. What is the impact of this local-to-local strategy on its manufacturing footprint for SR1 and SR2 and SR3?
13.
How likely is the total capacity to differ in five years’ time?
14.
What do you think are the key shifts worth noting to investors, in light of the context around pricing growth capacity and the local-to-local strategy?
15.
There have been some margin targets set by management in the most recent capital markets day. I think Michelin is trying to achieve above 12% in SR1, above 10% in SR2 and above 17% in SR3. Could you help us bridge the gap from current levels? Where is this margin improvement coming from, what savings are achieved and what top line are you expecting?
16.
We’re hearing about SG&A saving opportunities from Michelin. What do you think those might be?
17.
Michelin has noted that it would like to have sales reach 20-30% by 2030 for the non-tyres segment. Could you outline how the company gets there? I think it’s sitting at about 5% for non-tyres, so that would be quite a big jump. What products will make up that 20-30% and in what time frame?
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