Q1 2023 sell-in markets in Europe and North America were characterized by inventory reductions in a context of improving supply chains, while Q1 2022 was boosted by inventory replenishment:

PC/LT tire markets contracted by 3%, impacted by replacement demand in Europe and North America. OE markets were slightly positive but still well below 2019 levels.

Truck tire markets outside China declined by 2%, as robust OE sales were more than offset by slowing RT demand, particularly in Europe and North America.

Specialty tire markets remained strong, especially in the Mining and Aircraft segments, but were weaker in Construction and Two-wheels.

Non-tire markets continued to expand in such segments as general industrial, mining, energy and fleet services.

Consolidated sales rose by 7.4% to EUR7.0 billion over the period, benefiting from premium positioning. The growth reflected the net impact of:

A 6.6% decline in volumes, stemming primarily from weaker PC/LT and Truck sell-in demand, with Eastern Europe accounting for 25% of the decrease.

A 12.3% price-mix effect, reflecting the Group products' quality and performance. The growth in high-value segments and strong Mining tire sales have more than offset an unfavorable OE/RT mix.

A 15% growth in non-tire sales, both High-Tech Materials and Fleet Services.

A 0.8% gain from the currency effect, reflecting mainly the USD/EUR evolution.

FULL-YEAR GUIDANCE

The Group confirms its projected scenario in markets trending towards the lower end of the initial ranges. Sales volumes are still expected to end the year within the [-4%; -0%] range.

2023 guidance is confirmed, with segment operating income above EUR3.2 billion at constant exchange rates and reported free cash flow excluding M&A of more than EUR1.6 billion.

(C) 2023 Electronic News Publishing, source ENP Newswire