2024 UNIVERSAL REGISTRATION DOCUMENT
Contents 01 PRESENTATION AND STRATEGY OF THE MICHELIN GROUP 5 Company Profile 6 Manufacturing in a world full of challenges 11 Turning challenges into success 27 Building on a foundation of robust governance 47 02 CORPORATE GOVERNANCE REPORT 59 Governance 60 Compensation 108 Additional information 143 Statutory Auditors’ report 152 03 RISK MANAGEMENT 155 3.1 Risk management system 156 3.2 Risk factors specific to Michelin, description and related management systems 160 3.3 Internal control process relating to the preparation of accounting and financial information 167 04 SUSTAINABILITY STATEMENT 171 Preface 172 4.1 General information 173 Environmental matters 197 4.2 Climate change (E1) 197 4.3 Pollution (E2) 220 4.4 Water and marine resources (E3) 231 4.5 Biodiversity and ecosystems (E4) 238 4.6 Resource use and circular economy (E5) 249 4.7 European Taxonomy 257 Social matters 262 4.8 Own workforce (S1) 262 4.9 Workers in the value chain (S2) 272 4.10 Consumers and end-users (S4) 279 Governance Matters 286 4.11 Business conduct (G1) 286 Appendices 294 4.12 Report on the certification of sustainability information and verification of the disclosure requirements under Article 8 of Regulation (EU) 2020/852 312 05 FINANCIAL PERFORMANCE 317 5.1 Report of the Managers 318 5.2 2024 consolidated financial statements 355 5.3 Financial statements 442 5.4 Additional information 464 06 INVESTOR RELATIONS 467 6.1 Information about the Company 468 6.2 Share information 469 6.3 Investor relations 472 6.4 Documents on display 472 6.5 Additional share information 473 07 ANNUAL SHAREHOLDERS MEETING OF MAY 16, 2025 491 7.1 Report of the Managing Chairman and proposed resolutions 492 7.2 Report of the Supervisory Board: recommendations concerning the votes on the proposed resolutions 501 7.3 Statutory Auditors’ report on the share capital decrease 506 08 TABLES OF CONCORDANCE 509 8.1 Table of concordance for the Universal Registration Document 510 8.2 Table of concordance for the Annual Financial Report 512 8.3 Table of concordance with the AMF tables on corporate officer compensation 512 8.4 Table of concordance between the management report and the corporate governance report 513
2024 UNIVERSAL Registration Document Including the annual financial report, the sustainability statement and the duty of care plan The French language version of this Universal Registration Document was filed on April 4, 2025 with the French securities regulator (Autorité des marchés financiers - AMF), as the competent authority under Regulation (EU) 2017/1129, without prior approval in accordance with Article 9 of said Regulation. The Universal Registration Document can be used when securities are offered to the public or for their admission to trading on a regulated market if it is completed by a note on the securities and, if applicable, a summary and all of the amendments made to the Universal Registration Document. The package is approved by the AMF in accordance with EU Regulation 2017/1129. This Universal Registration Document is a reproduction in PDF format, translated into English, of the official version of the Universal Registration Document in ESEF format filed with the AMF on April 4, 2025 and available on the AMF website www.amf-france.org. This reproduction is available on our website www.michelin.com 3 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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chapTER 01 COMPANY PROFILE 6 Interview with Managing Chairman Florent Menegaux 8 MANUFACTURING IN A WORLD FULL OF CHALLENGES 11 The major challenges shaping our business environment 12 Growing in a complex, uncertain environment 14 Our business model 16 Four business lines 18 Pursuing our 2030 strategic vision 20 Michelin’s environmental strategy 22 Performance // Profit 24 Performance // People 25 Performance // Planet 26 TURNING CHALLENGES INTO SUCCESS 27 Putting people first in our vision 28 Capitalizing on our innovation leadership 30 Our distinctive capabilities 32 The tire business 36 Polymer Composite Solutions 40 Connected Solutions 42 Lifestyle activities 44 Financial and non-financial ratings 46 BUILDING ON A FOUNDATION OF ROBUST GOVERNANCE 47 Stable, balanced governance 48 The Group’s strategic and operational management 50 The Supervisory Board 52 Supervisory Board committees 53 Assessing risks and their materiality to manage them more effectively 54 Ethics, the bedrock of our corporate culture 55 Ownership structure and voting rights 56 Share information 57 Presentation and strategy of the Michelin Group 5 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
Pioneering engineered materials for more than 130 years, Michelin is uniquely positioned to make decisive contributions to human progress and to a more sustainable world. Drawing on its deep know-how in polymer composites, Michelin is constantly innovating to manufacture high-quality tires and components for critical applications in demanding fields as varied as mobility, construction, aeronautics, low-carbon energies, and healthcare. The care placed in its products and deep customer knowledge inspire Michelin to offer the finest experiences. This spans from providing data- and AI-based connected solutions for professional fleets to recommending outstanding restaurants and hotels curated by the MICHELIN Guide. Company Profile Michelin is building the world’s leading manufacturer of life-changing composites and experiences. Company Profile The Group 01 Financial performance Highlights €27.2bn in sales 12.4% segment operating margin €2.2bn in free cash flow before M&A 129,800 employees including 6,000 in R&D €1.2bn committed to innovation Polymer Composite Solutions production plants tire production plants 45 83 84.7% employee engagement rate -13% reduction in CO2 emissions over the year 31% renewable or recycled materials used in making a tire 2024 KEY FIGURES COMPANY PROFILE 6 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 Company Profile The Group SALES BY BUSINESS WORKFORCE AND SALES BY REGION North America: Europe: Other regions: 17% Specialty tires(3) 12% Connected Solutions(2), Retail & distribution(4) & Lifestyle(1) 5% Polymer Composite Solutions(3) 37% Replacement Automotive and Two-wheel tires(1) 20% Long Distance and Urban Transportation tires(2) 9% Original Equipment Automotive tires(1) Employees 48% Sales 36% Employees 21% Sales 39% Employees 31% Sales 25% (1) Reporting segment 1. (2) Reporting segment 2. (3) Reporting segment 3. (4) Allocated pro rata to each of the three reporting segments. 7 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 “For each of the major challenges we are collectively facing, Michelin can deliver innovative responses.” Interview with Managing Chairman Florent Menegaux with Managing Chairman Florent Menegaux Interview How would you describe Michelin’s performance in 2024? Michelin delivered a solid performance in 2024. For that, I would like to thank all our employees, who are more committed than ever, with an 84.7% engagement rate. Each one is playing an active role in the Group’s future, as demonstrated by their steadily increasing take-up of the employee shareholding plans, with 57% of them investing in the latest round. I’m also extremely proud to see that, compared with 2021, we have 17% more managers who started their careers as shopfloor production operators. I think this is a compelling illustration of the tremendous growth opportunities that Michelin offers. Our financial results were robust, in a highly complex, uncertain environment. We created value in every business line, with segment operating income standing at €3.4 billion despite a challenging business environment, particularly in the original equipment segments. We also successfully generated resources to invest in our Group’s future, with free cash flow before M&A increasing to €2.2 billion. The foundations of our performance tomorrow are being laid today. Florent Menegaux Interview with Managing Chairman Florent Menegaux 8 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
with Managing Chairman Florent Menegaux Interview 01 market conditions. My thoughts go first to the employees directly impacted by these transformations. Throughout, our top priority is to fulfill the Group’s commitments, both to helping everyone find a stable career future and to recreating at least as many jobs in the impacted community. This situation calls for us to get back to basics, to the people who make Michelin what it is every day. Our Group succeeds when every member of the corporate community is personally growing and pursuing a fulfilling career path. Since January 1, 2024, the living wage initiative has been deployed around the world, to ensure that everyone is paid enough to enable a family of two adults and two children to meet their food, housing, travel and education needs while saving for contingencies and the future. We work with an independent NGO to confirm that compensation offered across the Group complies with this benchmark, including cost of living adjustments. In most cases, this positions the Michelin Group well above each host country’s legal minimum wage. This is how we can enable everyone to look to the future with confidence, and how we will all succeed together. How is Michelin progressing towards its objective of building a world-leading manufacturer of life-changing composites and experiences? We are continuing to showcase our distinctive capabilities in an increasingly wider range of markets. Our ability to leverage our proficient materials expertise to design composites with a myriad of applications is constantly reshaping our playing field. The most iconic of these composites that are transforming our daily lives are tires. They are also the most complex, with more than 200 components that are carefully fabricated and assembled using processes that we are constantly reinventing. The common features shared by all the composites we make are their high technological content and the fact that without them, a system could not function. They are always mission-critical. This is the case, for example, with our conveyors, or the seals that we engineer for the aerospace industry. Our araminolic adhesive resins also make a real difference, by combining high performance with plant-sourced components that are kinder to the planet and our health. This concern for our customers’ success is also embedded in the experiences we offer. Our understanding of usage patterns and our data intelligence enable us to design innovative solutions to help our fleet Concerning the planet, the 13% reduction in our Scopes 1 and 2 greenhouse gas emissions, i.e. from our direct activities, is a remarkable step forward that aligns us with the pathway to keeping global warming below 1.5°C, as approved by the independent standards-setting organization SBTi. We also further reduced our water withdrawals, by 7% over the year, and increased the proportion of recycled and renewable materials in all our products, to a total 31%. These advances made in just one year fill me with pride in what Michelin teams do every day. The three aspects of people development, economic and financial performance, and protection of the planet and its resources are truly interdependent and mutually beneficial. We will continue to improve our performance in each one. How is Michelin adjusting to its international business environment? I think it’s important to take a step back and look at the Group’s recent past to realize just how complex, volatile and uncertain our operating environment is right now. It has been lastingly transformed by the overlapping impact of one crisis after another, which has been particularly striking since Covid. We’ve learned to navigate in this new world, staying the clear course set by our Michelin in Motion 2030 strategy. Our presence in 174 countries, as well as the diversity of our markets, means that we are directly engaged with the world and the way it is changing. In particular, we can detect even the weakest signals of coming transformations before they spread more widely. This is also a factor of resilience, since our broad geographic footprint enables us to foresee coming shocks more clearly and absorb them when they occur. Plus, our long-standing local-to-local approach confers a decisive strength at a time when world trade is under unprecedented strain. In this kind of environment, more than ever, we absolutely have to remain competitive. Today, our responsibility is to ensure that the Group continues to act as a powerful source of innovation in the decades ahead. In this regard, I’d like to say a few words about the industrial restructuring projects carried out in 2024. In France, China, Poland and Sri Lanka, we’ve had to make difficult decisions to shut down or scale back operations in response to structurally deteriorating 9 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 with Managing Chairman Florent Menegaux Interview What’s new in this document and what are the key takeaways for Michelin? This Universal Registration Document includes the Sustainability Statement, in application of the Corporate Sustainability Reporting Directive (CSRD). By basing this exercise on European reporting standards, we are making it easier to compare the performance of different companies. This represents a major factor of differentiation for Michelin, vis-à-vis both our competitors and the rest of the industry. It also enables us to use a common language in addressing environmental, social and governance matters. The entire Document reflects the extensive work of a wide array of Michelin teams, to whom I would like to extend my warmest appreciation. customers meet all their operational, people and environmental challenges. And it’s our ability to move from proposing recommendations to implementing the right solution with our customers that gives our solutions their high value. Michelin also offers unforgettable travel experiences, that are further enhanced by innovative digital services. By extending our restaurant recommendations to characterful hotels, we’re continuing to transform the daily lives of the millions of travelers who rely on the Michelin Guide. What does Michelin’s future look like? For each of the major challenges we are collectively facing, Michelin can deliver innovative responses. To meet the challenge of safeguarding our planet and its resources, we are steadily attenuating the environmental impact of our initiatives, products and services, while helping our customers to reduce theirs. Our eco-design processes are enabling us to address the impact of our solutions across their life cycles, right from the design stage. We are always mindful that the technological revolution must serve the needs of people. In our operations, we’re realizing the full potential of artificial intelligence to make our processes more efficient, so that people can focus on higher value-added tasks. And we’re committed to offering our customers all the benefits of truly connected mobility. Lastly, Michelin will continue to play a pioneering role in supporting social change. In a fragmented world, where there is a real risk of losing social cohesion, work has to fulfill all its promises of personal growth and inclusion. With our talent campus, the Manufacture des Talents, we want to enable everyone to continue learning throughout their working lives, so that they can fulfill all their aspirations. In everything we do at Michelin, we know that some aspects will never change: our pioneering spirit, our passion for technology, and our constant focus on people. “Our ability to leverage our proficient materials expertise to design composites with a myriad of applications is constantly reshaping our playing field.” 10 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 MANUFACTURING IN A WORLD FULL OF CHALLENGES MANUFACTURING IN A WORLD FULL OF CHALLENGES 11 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
The major challenges shaping our business environment ENVIRONMENTAL CHALLENGES Intensifying impacts Year after year, the impacts of climate change are becoming increasingly real and visible. The projected average increase in global temperatures, now estimated by the UN at 3.1°C by 2100, represents a major challenge for humanity, At the same time, ecosystems are being degraded, biodiversity is being lost and natural and fossil resources are being depleted. This means that we have to rethink the current growth model in ways that tend towards carbon neutrality, while protecting resources more effectively. This is what we have to do to support a sustainable future and a resilient planet. +1.55°C above pre-industrial levels: 2024 was the warmest year on record, with an average temperature close to the limit set by the Paris Agreement. Source: World Meteorological Organization. 1 million animal and plant species are threatened with extinction. Source: UN. MICHELIN’S PRIORITIES ■ Reach net-zero carbon emissions by 2050 for Scopes 1 and 2 and for the Scope 3 categories of upstream and downstream logistics activities, suppliers, treatment of end-of-life tires and energy. ■ Demonstrate a firm commitment to biodiversity, particularly in the natural rubber value chain. ■ Make eco-design a standard and foster the circular economy to preserve resources, in particular by increasing the percentage of recycled or renewable materials used in our tires. ■ Continue to reduce the rolling resistance of our tires and further attenuate the release of tire and road wear particles. ■ Reduce our water withdrawals more quickly. The major challenges shaping our business environment Manufacturing in a world full of challenges 01 Today, the world is seeing an acceleration in three underlying trends that are disrupting societies and spurring companies to transform their operations. Inspired by its All Sustainable vision, Michelin has clearly identified the resulting challenges and defined its priorities in responding to these structural transitions. The major challenges shaping our business environment 12 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
TECHNOLOGICAL REVOLUTIONS Increasingly digitalized societies As digital technology and artificial intelligence become pervasive, societies are taking on a new face. Lifestyles, ways of working and the development of products, services and processes no longer have much in common with the practices that were still prevalent at the end of the last century. Together, changing usage patterns and technological innovation are symbiotically creating ever greater immediacy, convenience and ease of access. All of this is driving the emergence of a hyper-connected world, which is redefining, from top to bottom, the nature and content of social and business relationships. GEOPOLITICAL AND SOCIAL FRAGMENTATION Today, international relations are being disrupted and economies destabilized by conflict escalation, rising protectionism, polarized economic policies and threats to democracy. At the same time, in response to persistent inequalities, crisis-ridden social protection systems and emerging aspirations, societies are continuing to fragment and attitudes towards work are shifting. More than 50% of the world’s population was called to vote in 2024. Source: Associated Press - Reuters. 40% of jobs worldwide and 60% in advanced economies may be impacted by artificial intelligence. Source: FMI (2024). MICHELIN’S PRIORITIES ■ Optimize risk management processes to secure the Group’s business operations. ■ Provide for alternative plans to align operations with the new geopolitical situation. ■ Increasingly put people first in decision-making processes, through the universal social protection floor, a commitment to inclusion, a living wage and other social innovations. ■ Improve the appeal of manufacturing jobs and career paths, and enhance employability and personal growth through lifelong learning policies. ■ Support jobs and economic activity in our host communities to foster social cohesion. x10 the generative artificial intelligence market is expected to grow from around $8 billion in 2023 to $100 billion in 2028, or by an average 65% a year. Source: Sopra Steria Next. More than 90% of people in high-income countries use the internet. Source: The World Bank (2022). MICHELIN’S PRIORITIES ■ Support connected mobility with a range of services and solutions for safer, more sustainable mobility, leveraging our unparalleled understanding of usage practices and advanced algorithm expertise. ■ Offer millions of travelers remarkable experiences, through innovative digital services. ■ Monetize high value-added services based on data analytics. ■ Improve the customer experience and interface with greater simplicity, seamlessness and responsiveness. ■ Scale up artificial intelligence to make production processes more efficient. 01 The major challenges shaping our business environment Manufacturing in a world full of challenges 13 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
Growing in a complex, uncertain environment 01 Growing in a complex, uncertain environment Manufacturing in a world full of challenges AN UNCERTAIN GLOBAL ECONOMIC ENVIRONMENT A TENSE GEOPOLITICAL ENVIRONMENT AN EVER-CHANGING REGULATORY AGENDA FAR-REACHING SOCIAL AND ENVIRONMENTAL TRANSFORMATIONS PROFOUNDLY CHANGING END-MARKETS contrasting growth trends among the major economic regions, with Europe particularly held back by energy costs access to raw materials dependent on global geopolitical developments vehicle environmental standards designed to reduce greenhouse gas emissions from road traffic growing stakeholder awareness of sustainability issues an automobile fleet that is aging, with the average passenger car 12 years old, but moving upmarket, with SUVs accounting for almost half of all new car purchases worldwide in 2024, versus one-third in 2014 persistently fluctuating, uncertain interest rates, which have turned upwards in certain regions even as inflation remains under control supply chains disrupted by international tensions and conflicts traceability standards for sourcing raw materials, in particular to counter imported deforestation a gradual shift from ownership to usership a road transportation market increasingly polarized between commoditization on the low end and upmarket premiumization (driven by the desire for greener performance and the latest technology) Growing in a complex, uncertain environment 14 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
Michelin operates in a market undergoing multi-faceted change in a highly volatile global business environment 01 Growing in a complex, uncertain environment Manufacturing in a world full of challenges particularly heavy public debt and deep budget deficits in the European Union export controls and more restricted access to certain markets high-emission vehicles increasingly banned in city centers evolving, more fleeting brand relationships cyclical specialty tire markets despite still strong fundamentals hard-to-understand customs duties and anti-dumping regulations the growing risk of cyber attacks the pace of the shift to EVs highly dependent on political agendas a growing appetite for unique, differentiating experiences growing demand for lightweight, durable composites in a myriad of value chains MICHELIN’S OBJECTIVE continue to deliver profitable growth to remain competitive MICHELIN’S OBJECTIVE strengthen its crisis management process and reduce its operating exposure to geopolitical risks MICHELIN’S OBJECTIVE leverage the full value of its technological leadership to design and mass-produce All Sustainable products and solutions by 2050 MICHELIN’S OBJECTIVE leverage its ability to innovate for a better world MICHELIN’S OBJECTIVE align its offerings and footprint to each market’s trends 15 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
Our business model Strategy 01 Our business model Manufacturing in a world full of challenges Growing in markets with high technological requirements, such as aerospace, energy and healthcare Building sustainable growth on differentiated products, services and experiences (1) Including joint ventures. (2) Brand Finance Global 500 ranking, January 2025, based on €1.00 = $1.05. Opportunities offered by environmental, societal and technological change: urbanization, electrification of Resources DIVERSE, ENGAGED TEAMS 4.8; 1 pp. 28-29 ■ 129,800 employees in 63 countries ■ 84.7% employee engagement rate (up 1.2 pts vs. 2023) ■ 30.4% of managers are women AN UNRIVALLED CAPACITY FOR 1 pp. 30-35 INNOVATION AND DISTINCTIVE EXPERTISE ■ Designing and process engineering flexible composite products ■ Materials science ■ Engineering innovative processes ■ Capturing the value of data • More than 12,000 patents (including 258 filed in 2024) • A unique open innovation ecosystem, with more than 170 new partnerships per year and 8 joint laboratories opened in 2024 • Vertically integrated in critical components, with more than 30 dedicated workshops or plants, including 3 synthetic rubber plants 38% of natural rubber inputs processed in-house(1) • 1.6 billion kilometers of mobility data captured every day A POWERFUL, ICONIC BRAND 1 pp. 39, 44-45 ■ A brand valued at €8.4 billion(2) ■ The Michelin Man voted Icon of the Millennium by New York’s Advertising Week in 2018 and Best Logo of the Century by the Financial Times in 2000 ■ 130 years of remarkable, one-of-a-kind fine dining and travel experiences LASTING, ROBUST 5.1; 5.2; 6.2 FINANCIAL RESOURCES ■ €18.6 billion in equity ■ Robust credit ratings, with stable outlooks at Standard & Poor’s, Fitch and Scope ■ An evenly balanced shareholder structure: 20.6% French institutional investors, 65.8% non-resident institutional investors, 11% individual shareholders, 2.6% employee shareholders See Chapter Our business model 16 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 Our business model Manufacturing in a world full of challenges Michelin is building the world’s leading manufacturer of life-changing composites and experiences Responding to the challenges of every mobility enabler and manufacturer personal safety, operating performance and environmental impact (3) In the case of Passenger car, Light truck and Truck tires. (4) 2 024 dividend of €1.38 per share subject to approval by the Annual Shareholders Meeting on May 16, 2025. climate change and resource depletion, global population growth mobility, digitalization, etc. Creating value FOR EMPLOYEES 4.8 ■ 57% of employees invested in the 2024 employee share ownership plan (up 4 pts vs. the previous plan in 2022) ■ Fair Wage Network certification in 2024 ■ 98% of employees covered by a universal social protection floor, supplementing local social security systems for SOCIETY ■ The best balance of product/service performance and durability 3.2; 4.2; 4.3 e.g., 25% better tire abrasion performance than the average of premium competitors ■ Nearly 19,000 volunteer initiatives involving 1 pp. 28-29 Group employees in 2024 ■ more than 1,000 jobs created every year 1 pp. 28-29 thank to Michelin Development’s support in renewing and revitalizing local labor markets for the PLANET 4.2 to 4.7 ■ Upstream phase – supply • 98% of natural rubber inputs assessed as deforestation-free • 11% year-on-year reduction in intercontinental finished product shipment tonnages ■ Operations phase • 7.7% year-on-year reduction in water withdrawals • 34% of energy used came from renewable sources (up 6 pts vs. 2023) ■ Downstream phase – use • nearly €120 million invested in 2024 to reduce tire rolling resistance (which has been cut by more than 50%(3) since 1992) • 31% of tire raw materials were renewable or recycled (up 3 pts vs. 2023) for PARTNERS AND CUSTOMERS 4.10 ■ Net Promoter Score exceeding 40 ■ Product/service vitality: around 30% of annual sales derived from products or services introduced in the last three years FINANCIAL VALUE CREATED 5.1; 5.2 ■ 10.5% return on capital employed (ROCE) in 2024 ■ 52% of 2024 net income paid out in dividends(4) See Chapter 17 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
Tires A tire may look simple, but it is actually a highly complex, composite product made from more than 200 different components and materials, which Michelin proficiently blends to enable all forms of mobility. 01 4COMPOSITES & that transform “A COMPOSITE is a combination of two or more materials whose complementary properties work together to deliver even greater performance. This makes tires the ultimate composite.” Four business lines Manufacturing in a world full of challenges POLYMER COMPOSITE SOLUTIONS Expertise in materials technology has been driving Michelin’s growth for the past 130 years. The Group is committed to leveraging its expertise in areas far beyond mobility to serve such highly demanding markets as construction, aerospace, low-carbon energies and health care. 18 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 Business Lines EXPeRIENCES our daily lives Four business lines Manufacturing in a world full of challenges Lifestyle An international leader in curating a selection of outstanding restaurants, boutique hotels and exceptional wines, Michelin offers products and innovative digital services that enable millions of travelers and gourmets around the world to enjoy unforgettable travel experiences. Connected Solutions Michelin’s sophisticated algorithm expertise, combined with its unique knowledge of usage patterns and the regular input of artificial intelligence and other advanced technologies, enables it to meet the challenges of both mobility professionals and manufacturers. 19 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 Pursuing our 2030 strategic vision In 2021, Michelin launched the Michelin in Motion strategic plan, which lays the foundations for sustainable growth through the rest of the decade in seamless alignment with the Group’s All Sustainable commitment. It embeds social, economic and environmental issues deep in the heart of the Group’s growth dynamic. OUR PURPOSE OUR CULTURAL FOUNDATION Our strategic vision Pursuing our 2030 strategic vision Manufacturing in a world full of challenges Pursuing our 2030 strategic vision 20 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 Offering everyone a better way forward Our values of respect: Respect for facts, people, customers, shareholders and the environment. Our value creation model We believe that tomorrow, everything will be sustainable at Michelin. This vision of the future informs all our decisions, which are grounded in a constant search for the right balance between People, Profit and the Planet. In Tires • T arget high value-added market segments, in particular premium tires for cars, two-wheel vehicles, bicycles, trucks and specialty vehicles (mining, agricultural, construction and materials handling machinery, and aircraft). • Produce as close to our customers as possible with Industry 4.0 plants. • Provide excellent customer service. • Broaden the B2B services portfolio. In Polymer Composite Solutions • D evelop innovative, high-performance applications for such composite solutions as coated fabrics, films, conveyors, belts, seals and inflatable structures. • Introduce game-changing innovations in engineered polymers, such as active membranes, biomaterials, non-toxic adhesives and composite reinforcements (for example, with ResiCare or AraNea) • Forge strategic partnerships to offer very high technology-content products in still emerging markets, with initiatives like Symbio (hydrogen mobility), ResiCare (high performance bio-based resins) and Wisamo (marine wind propulsion solutions). In Connected Solutions • I ncrease tire-as-a-service sales and offer fleet managers purpose-designed services. • Facilitate the transition to electric fleets and continue to improve efficiency, safety and environment protection. • L everage the Internet of things and data analytics to apply our acquired connected mobility expertise in new business territories. in Lifestyle • C ontinue to deploy the MICHELIN Guide internationally and become “digital first.” • Maintain the pace of innovation, such as the launch of the first award celebrating sustainable gastronomy, the MICHELIN Green Star, or the creation in 2023 of the MICHELIN Key award for hotels. • Further enhance the mobility experience with a portfolio of services supporting different travel styles, from road maps and itineraries to mobile apps and travel guides. • Offer a comprehensive array of licensed products that improve our daily lives, such as car and bike accessories, sports and recreational gear and collectibles. Pursuing our 2030 strategic vision Manufacturing in a world full of challenges 21 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 CLIMATE moving towards zero net CO2 emissions REDUCING INDIRECT EMISSIONS Raw materials purchasing, transportation, product use DECARBONIZING MANUFACTURING SITES +1.5° pathway USING EXCLUSIVELY DEFORESTATION-FREE NATURAL RUBBER REDUCING THE environmental * In compliance with the EU Deforestation Regulation. Michelin’s environmental strategy Manufacturing in a world full of challenges * Michelin’s environmental strategy 22 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 developing a circular economy for tires RESOURCES reducing the impacts of operations BIODIVERSITY 2050 LIFE CYCLE ASSESSMENTS AND ECO-DESIGN INCREASING USE OF RENEWABLE AND RECYCLED MATERIALS INTEGRATING BIODIVERSITY INTO SITE MANAGEMENT footprint Michelin’s environmental strategy Manufacturing in a world full of challenges 23 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 PROFIT Performance and ambitions SALES (in € millions) 2030 Ambition Average annual growth in sales of 5% between 2023 and 2030, with more than 20% of sales generated by businesses other than tire manufacturing and related distribution in 2030. OPERATING INCOME(1) (in € millions and as a % of net sales) NET INCOME (in € millions) 28,590 2022 2023 2024 28,343 27,193 3,396 11.9% 3,572 12.6% 3,378 12.4% 2022 2023 2024 1,890 2,009 1,983 2022 2023 2024 10.8% 2022 2023 2024 11.4% 10.5% 25.2 18.3 16.7 2022 2023 2024 -104 3,009 2022 2023 2024 2,225 4,200 2026* Cible 14% 28,590 2022 2023 2024 28,343 27,193 3,396 11.9% 3,572 12.6% 3,378 12.4% 2022 2023 2024 1,890 2,009 1,983 2022 2023 2024 10.8% 2022 2023 2024 11.4% 10.5% 25.2 18.3 16.7 2022 2023 2024 -104 3,009 2022 2023 2024 2,225 4,200 2026* Cible 14% 28,590 2022 2023 2024 28,343 27,193 3,396 11.9% 3,572 12.6% 3,378 12.4% 2022 2023 2024 1,890 2,009 1,983 2022 2023 2024 10.8% 2022 2023 2024 11.4% 10.5% 25.2 18.3 16.7 2022 2023 2024 -104 3,009 2022 2023 2024 2,225 4,200 2026* Cible 14% RETURN ON CAPITAL EMPLOYED 2030 AMBITION Continuously create value between 2023 and 2030, with a more than 10.5% ROCE each year. FREE CASH FLOW BEFORE ACQUISITIONS (in € millions) NET DEBT (as a % of equity) Targeted free cash flow: €5,500m in total over the 2024-2026 period* 28,590 2022 2023 2024 28,343 27,193 3,396 11.9% 3,572 12.6% 3,378 12.4% 2022 2023 2024 1,890 2,009 1,983 2022 2023 2024 10.8% 2022 2023 2024 11.4% 10.5% 25.2 18.3 16.7 2022 2023 2024 -104 3,009 2022 2023 2024 2,225 4,200 2026* Cible 14% 28,590 2022 2023 2024 28,343 27,193 3,396 11.9% 3,572 12.6% 3,378 12.4% 2022 2023 2024 1,890 2,009 1,983 2022 2023 2024 10.8% 2022 2023 2024 11.4% 10.5% 25.2 18.3 16.7 2022 2023 2024 -104 3,009 2022 2023 2024 2,225 4,200 2026* Cible 14% 2022 2023 2024 11.9% 12.6% 12.4% 2022 2023 2024 2022 2023 2024 2022 2023 2024 16.7 2022 2023 2024 2022 2023 2024 2026* Cible Performance // Profit Manufacturing in a world full of challenges €2.2 billion INVESTED IN 2024 BRAND VITALITY INDICATOR(2) PRODUCT/SERVICE VITALITY INDEX(3) (as a %) 2023 2024 2030 73 72 65 up 5 pts vs. 2020 >30 * Target announced at the May 2024 Investor Day event. (1) Of the segments. (2) Single score composite indicator which summarizes the current vitality of the brand. It is based on five metrics: our purpose, innovation, communication, brand experience and love. (3) Percentage of sales from products and services introduced in the last three years. 2023 2024 2030 30.8 29.4 2030 AMBITION Maintain the strength of the MICHELIN brand 2030 AMBITION Sustain the pace of product and service innovation 2022 68 2022 31.0 Performance // Profit 24 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 People Performance and ambitions SET THE GLOBAL STANDARD FOR EMPLOYEE ENGAGEMENT, WITH A RATE OF MORE THAN 85% Employee engagement rate SET THE GLOBAL STANDARD IN WORKPLACE SAFETY Workplace safety (Total case incident rate)(1) SET THE STANDARD FOR DIVERSITY AND INCLUSION Diversity and inclusion (Diversity and inclusion management index, maximum score = 100)(2) LEAD THE INDUSTRY IN CREATING CUSTOMER VALUE Customer satisfaction NET PROMOTER SCORE (1) The number of accidents and cases of occupational illness recorded per 200,000 hours worked. In 2025, the TCIR was replaced by the Total Recordable Incident Rate (TRIR), which records the number of incidents (lost-time accidents, including fatalities, accidents without lost time but requiring treatment and incidents requiring workstation adjustments) per 1,000,000 hours worked. In 2024, the TRIR stood at 5.01 for the year. (2) IMDI: A composite metric that tracks diversity and inclusion in five areas: Gender balance, Identity, Multi-national management, Disability, and Equal opportunity. 82.5% 83.5% 84.7% 2022 2023 2024 2030 >85% 1.07 1.01 1.03 <0.5 70 72 73 2022 2023 2024 2030 80 41.6 42.7 40.2 2022 2023 2024 2030 vs 2020 UP 10 pts 2022 2023 2024 2030 50 ✔ ✔ ✔ ✔ 82.5% 83.5% 84.7% 2022 2023 2024 2030 >85% 1.07 1.01 1.03 <0.5 70 72 73 2022 2023 2024 2030 80 41.6 42.7 40.2 2022 2023 2024 2030 vs 2020 UP 10 pts 2022 2023 2024 2030 50 82.5% 83.5% 84.7% 2022 2023 2024 2030 >85% 1.07 1.01 1.03 <0.5 70 72 73 2022 2023 2024 2030 80 41.6 42.7 40.2 2022 2023 2024 2030 vs 2020 UP 10 pts 2022 2023 2024 2030 50 82.5% 83.5% 84.7% 2022 2023 2024 2030 >85% 1.07 1.01 1.03 <0.5 70 72 73 2022 2023 2024 2030 80 41.6 42.7 40.2 2022 2023 2024 2030 vs 2020 UP 10 pts 2022 2023 2024 2030 50 Performance // People Manufacturing in a world full of challenges Performance // People 25 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 Planet Performance and ambitions (1) Reduction in the rolling resistance of car, light truck and truck tires. (2) The Industrial – Michelin Environmental Performance metric is a weighted indicator that tracks energy use, CO2 emissions, organic solvent use, water withdrawals, and waste production. (3) Renewable bio-based materials are made from raw materials derived from natural resources that are naturally replenished on a human timescale, such as biomass. ACHIEVE NET-ZERO EMISSIONS BY 2050 (SCOPES 1 AND 2) Scopes 1 and 2 CO2 emissions vs. 2019 IMPROVE THE ENERGY EFFICIENCY OF OUR PRODUCTS TO HELP REACH NET-ZERO EMISSIONS Product/tire energy efficiency(1) SET THE GLOBAL STANDARD FOR THE ENVIRONMENTAL FOOTPRINT OF MANUFACTURING FACILITIES Environmental footprint of Michelin i-MEP production plants(2) vs. 2019 INCREASE THE PERCENTAGE OF RENEWABLE OR RECYCLED MATERIALS IN OUR TIRES to reach 100% by 2050 Renewable(3) or recycled materials used in making a tire ✔ ✔ ✔ ✔ 2022 2023 2024 2030 -20% -28% -37% -47% -11.2% -16.1% -17.4% 2022 2023 2024 vs 2019 -1/3 2030 30% 28% 101.8 102.9 104.3 2022 2023 2024 2030 31% 2022 2023 2024 vs 2020 UP 10 pts 110 -11.2% -16.1% -17.4% 2022 2023 2024 vs 2019 -1/3 2030 30% 28% 40% 101.8 102.9 104.3 2022 2023 2024 2030 31% 2022 2023 2024 2030 vs 2020 UP 10 pts 110 -11.2% -16.1% -17.4% 2022 2023 2024 vs 2019 -1/3 2030 30% 28% 40% 101.8 102.9 104.3 2022 2023 2024 2030 31% 2022 2023 2024 2030 vs 2020 UP 10 pts 110 Performance // Planet Manufacturing in a world full of challenges Performance // Planet 26 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 TURNING CHALLENGES INTO SUCCESS TURNING CHALLENGES INTO SUCCESS 27 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 Putting people first in our vision Since the beginning, social innovation has been a hallmark of Michelin’s identity and a powerful force driving its growth. Caring for employees For Michelin, there can be no strategic vision without taking people into consideration. That’s why the Group is committed to its employees, who dedicate their time and energy to forging its success. The Michelin One Care program, for example, provides every member of the corporate community with a universal social protection floor focused on three key priorities: giving employees time to welcome a new child into the family; protecting the family in the event of an employee’s death; and offering healthcare insurance to supplement national systems in covering care and prevention costs This culture of care is also reflected in a commitment to paying employees a living wage that enables them to live with dignity. This commitment has been recognized by the Fair Wage Network NGO, which certified the Group as a “Global Living Wage Employer”(1) in early 2024. Michelin also believes deeply in the values of inclusion and equal opportunity. It takes care that every individual is respected and valued at every level of the organization, and fights against all types of discriminatory practices. Helping everyone improve their employability To foster engagement of every employee and improve their employability, Michelin strives to support each person throughout their careers. It offers everyone excellent training in future-facing jobs, in particular at the Manufacture des Talents talent factory opened in 2022 and in the Hall 32 training center, dedicated to manufacturing skills-sets. This training commitment has grown increasingly prominent over the years, with employees now able to access more than 26,000 learning and development programs. Supporting host regions and local communities When the Group is obliged to restructure in response to changes in its environment, it works with Michelin Development, its in-house economic development agency, to help revitalize the impacted regions by supporting the creation of sustainable jobs and the emergence of new business activities. On the site of its historic production plant in Clermont-Ferrand, France, for example, Michelin has created Parc Cataroux, a unique program that embodies the power of Michelin’s innovation and brings together all the public and private stakeholders who share its commitment to making a positive social contribution to the community. The common thread running throughout Parc Cataroux is innovation in all its forms, which is expressed in four clusters full of promise for the region’s future economic, educational and cultural fabric: (i) The Manufacture des Talents talent factory to train people in current and emerging jobs; (ii) the Center for Sustainable Materials to foster the development of recycling technologies and the circular economy; (iii) the Collaborative Innovation Center to support the emergence of impact economy projects; and (iv) a sports, fitness and cultural venue. In every host region, Michelin engages with local communities through its Michelin Volunteers program, which encourages employees to get involved in outreach projects. In 2024, for example, 18,963 such projects were carried out during the year. Lastly, as a leading purchaser of natural rubber, Michelin actively promotes sustainable management practices in the rubber-tree farming value chain by offering smallholders in-field training to help them increase their income. (1) The scope of certification included all Michelin Group companies, excluding those recently acquired or in the process of being sold. Putting people first in our vision Turning challenges into success Putting people first in our vision 28 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
EMPLOYEE ENGAGEMENT: A POWERFUL MICHELIN STRENGTH SUPPORTING EMPLOYEES AND HOST COMMUNITIES: AN ABSOLUTE PRIORITY FOR MICHELIN Felix, can you tell us how Michelin acts responsibly when it has to reorganize its production operations? When a facility closes, regardless of the circumstances or the country, Michelin continues to uphold its responsibility, both for the people concerned and for local labor markets and ecosystems. This means that our priority is to deploy an array of measures to support our employees, including support in finding a new job, retraining or relocating. In every country where we restructure, our response exceeds compliance with local regulations. In accordance with our All Sustainable commitment, we also fulfill our responsibility to local communities by offering solutions, in conjunction with local authorities, to revitalize the local ecosystem and create new jobs. Michelin has carried out several restructuring programs in Germany since 2019. How have the employees been supported? After we announced the closure of our Bamberg plant in 2019, all of the 858 impacted employees were supported in finding a solution through retirement, transfer to another Group facility, outplacement or retraining in a new job. The restructuring announced in 2023, involving 1,532 employees at three facilities in Germany, is still underway. Michelin has set up a voluntary separation program based on comprehensive employee support services. There haven’t been any dismissals, because every one of the impacted employees accepted the voluntary separation offer. Michelin assumes all its responsibilities and commitments in these periods of transition that are difficult for employees and their families. Practically speaking, what has been done for the impacted labor markets? In Bamberg, a forward-facing project was undertaken in association with local stakeholders to build the new 6,000 sq.m Cleantech Innovation Park on the former Michelin site. The Park, which will soon be inaugurated, will offer an ecosystem of working environments for companies, research institutes and universities active in artificial intelligence, digitalization and sustainable mobility. In addition, other companies have moved onto our former site, which helped to create new jobs. Everywhere we are currently closing facilities, we have liaised with local stakeholders from the outset to find sustainable solutions for each local community. Giulia, you studied life sciences and neuroscience and began your career in academic research. What drew you to Michelin? Well, previously I was working for a medical start-up, so I really was far removed from the culture of a big manufacturing corporation and the world of mobility issues. But medical research, where I come from, and materials science, where Michelin has been an expert for 130 years, both share a focus on fundamental research and a commitment to improving people’s daily lives. What motivated me to join Michelin was just that – the challenge of leveraging the Group’s tremendous potential for innovation to develop truly life-changing applications and help to shape a more desirable future. I felt that it was too exciting an opportunity to pass up. What also attracted me, and what is deeply innovative, is the importance given to everyone’s training and personal growth throughout their career paths, particularly at the Manufacture des Talents. What do you think are the main factors underlying employee engagement at Michelin? I’m lucky enough to work in the Michelin Engineered Polymers business unit, which is exploring business opportunities in the life sciences to benefit both people and the planet. This is the main engagement lever, our dream: to know that we’re working together to create a more sustainable future. Working for Michelin means experiencing, every day, the full value of exchanging ideas, openly communicating and collaborating in every aspect of our jobs. This is how we foster respect for people, innovation and boldness as pillars of engagement. THE MANUFACTURE DES TALENTS, AN UNRIVALED TRAINING ECOSYSTEM Because Michelin staunchly believes in supporting everyone’s personal growth, because every job is going to undergo profound change, and because Michelin is committed to enhancing the appeal of its host communities, in 2022, it created the Manufacture des Talents to offer a one-of-a-kind learning experience focused on innovation, excellence and inclusion, in both current and emerging jobs. Initially intended for Group employees, and available in nearly 10 countries, its programs have now been opened to employees of other companies in France and North America, to give everyone, everywhere in the world, the desire and ability to learn and pass on knowledge throughout their working lives. Felix Wall, Program Management Office, Northern Europe Region 01 Giulia Spampinato, Process Engineering and Digitalization Project Manager – Michelin Engineered Polymers Putting people first in our vision Turning challenges into success 29 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
01 Capitalizing on our innovation leadership To build a sustainable future, Michelin has made innovation one of its growth engines, enabling it to create sustainable value by delivering solutions whose contribution to social and environmental progress is widely recognized by customers. The culture of innovation is an integral strand of Michelin’s corporate DNA. Michelin sees innovation as a critical enabler in successfully fulfilling its growth ambitions and meeting its environmental impact objectives. Its research and development teams, representing more than 6,000 people in nine R&D centers around the world, are pursuing three main pathways to the future: designing an All Sustainable tire by 2050, exploring the life-changing opportunities offered by materials science and data analytics, and driving the emergence of new services. This multi-pronged process is leveraging the Group’s rigorous, granular understanding of how customers use its products and its sophisticated proficiency in materials and complex industrial processes. These capabilities, acquired and honed in becoming the technology leader in tires, are now being used to offer innovative, disruptive solutions in adjacent markets with high technology content. With more than 12,000 active patents worldwide and an annual budget of close to €1.2 billion allocated to innovation in the broadest sense of the term, Michelin is recognized today as one of the planet’s “Top 100 Global Innovators.” “I’m proud to be a part of this extraordinary adventure, which will enable Michelin to remain the tire leader for decades to come. We’re preparing the transition to tires made from recycled or renewable materials – a colossal challenge demanding innovation in new materials and the emergence of new players to quickly scale up production.... 1891 1915 1910 Removable tire invented 1900 First MICHELIN Guide published First social innovations introduced, with schools, clinics, housing and sports facilities... Breguet aircraft produced 1929 Tire-mounted railcar designed 1931 Michelin road signs introduced Capitalizing on our innovation leadership Turning challenges into success Capitalizing on our innovation leadership 30 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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