3 _117 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 3 CORPORATE GOVERNANCE REPORT Management and Supervisory Board compensation policies for 2024 These criteria and objectives also apply to the General Manager and to all Group employees who are eligible to participate in the bonus scheme. They are presented in the table below, which also shows the threshold, target and ceiling values for the quantitative criteria objectives: Criterion Objective Measurement method(1) Min. Target Max. Quantitative criterion and objective related to the position of General Partner/1st component Net income Profit As a % of the Profit Share N/A N/A N/A Value of the indicator 4% 4% 4% Quantitative criteria and objectives/2nd component (50% of the target fixed compensation) 2024 segment operating income (SOI) (like-for-like vs. 2023) Profit As a % of fixed compensation 0% 25% 37.5% Value of the indicator €3,500m €3,670m €3,800m Growth in free cash flow before acquisitions Profit As a % of fixed compensation 0% 25% 37.5% Value of the indicator €1,500m €1,800m €2,050m Total quantitative/2nd component 0% 50% 75% Quantifiable qualitative criteria and objectives/2nd component (30% of the target fixed compensation) Implementation of the strategy (deployment of the transformations) Profit Board assessment based on implementation of the Balanced Score Card As a % of fixed compensation 0% 10% 15% Value of the indicator N/A N/A N/A Total Case Incident Rate (TCIR) People As a % of fixed compensation 0% 5% 7.5% Value of the indicator 1.01 0.95 0.92 Percentage of Group management positions held by women People As a % of fixed compensation 0% 5% 7.5% Value of the indicator 22.5% 23.5% 24.5% CO2 emissions (Scopes 1 and 2) Planet As a % of fixed compensation 0% 10% 15% Value of the indicator 2.14 mt 2.04 mt 1.94 mt Total quantifiable qualitative/2nd component 0% 30% 45% Total quantitative and qualitative excluding net income criteria 0% 80% 120% TOTAL VARIABLE AS % OF FIXED REMUNERATION/1ST AND 2ND COMPONENTS 0% N/A 150% MAXIMUM TOTAL VARIABLE (IN €) 1,650,000(2) (1) For each criterion, a threshold rate, target rate and capped outperformance rate are defined; for performance between the threshold rate and the target rate, or between the target rate and the outperformance rate, the variable compensation is calculated on a straight-line basis. (2) The entire variable annual compensation would be deducted from the Profit Share.
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