Creating value with our polymer-based solutions Winning the product mix battle Michelin has always stood out for its scientific and industrial expertise in materials, as well as for its ability to engineer mass production processes for highly technical composite products. These capabilities enable the Group to build positions in such highly demanding markets as medical equipment, aerospace and process automation, which require extremely high-performance, longlasting products. These products systematically deliver critical properties that enable medical implants, aircraft window seals, automation drive belts and other applications and systems to function properly. The Group’s robust expansion in these markets is being driven both by organic growth in existing businesses and by acquisitions, like Flex Composite Group in 2023, which increased High-Tech Materials sales by 20% and created a new business unit dedicated to coated fabrics and high-tech films. The ongoing enhancement of our product and service offering, which is set to continue in the years ahead, will add more than €100 million to the Group’s operating income every year. In the Automotive segment, for example, this reflects the fact that by 2027, more than a third of new vehicles will be fitted with 19-inch and larger tires, compared with just 20% today. This trend has been underway for a number of years, but it’s now being intensified by the growing shift to electric mobility, which requires higher performance tires, a segment where Michelin is already leading the way with tires that are all EV‑compatible. In the replacement segment, 19-inch and larger demand should grow by 18% a year over the 2023-2027 period and account for 20% of the market in 2027 compared with 10% in 2023. At a time of fast growth in the most value-accretive segments, the Group is continuing to adjust and expand its production capacity, and to create competitive advantage with the durability and performance of its products. For example, over the past five years, Michelin has reduced TRWP emissions from its tires by a total of 100,000 tonnes. The Group’s massive data processing capabilities enable it to fine-tune its marketing in both Original Equipment and Replacement markets, while also adroitly capturing all the value from its skills and expertise. Maude Portigliatti, Executive Vice President, High-Tech Materials Business Line Scott Clark Executive Vice President, Automotive, Motorsports and Two-Wheel Business Lines; Head of the Americas Regions Michelin's distinctive capabilities are enabling it to expand in fast‑growing markets that value innovation and performance.” Between now and 2027, demand for 19-inch and larger Automotive tires will grow by 18% a year.” ACCELERATING OUR TRANSFORMATION Profit _30 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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