Sustainability Statement Appendices 04 APPENDICES APPENDIX A – ADDITIONAL INFORMATION DISCLOSED IN COMPLIANCE WITH ARTICLE L.22-10-35 OF THE FRENCH COMMERCIAL CODE Stronger ties between French citizens and the armed forces and enlistment in the reserves Signed in 2017, the first agreement to support the military reserves policy was renewed in 2022 under the same conditions. Under its terms, reservist employees of Manufacture Française des Pneumatiques Michelin and its subsidiaries may be granted up to 12 working days of paid leave per year to facilitate their service in the French Army, Air Force or Navy, the National Gendarmerie, the National Police Force, or armed forces support organizations such as the Armed Forces Health Service, the Defense Procurement Agency (DGA), the Services of Supply, the Operational Energy Service (SEO) and the Defense Infrastructure Service (SID). There are currently around 70 reservists among Michelin employees in France(1). Combating tax evasion Michelin’s tax policies are defined and implemented in line with its operating objectives in responsible and sustainable business development. In this regard, the Group’s primary responsibility is to ensure that it fulfills all of its international, regional and local tax obligations, in both the spirit and the letter of the law. Moreover, Michelin has defined its own fundamental guidelines, in a commitment to securing its positions and ensuring that the Group fairly pays all of the taxes due in its host communities. This is why Michelin systematically interprets tax legislation in compliance with both the law and the legislator’s intent, without taking advantage of any possible loopholes. The Group also recognizes the need and the value of nurturing trust-based relationships with tax authorities. As a result, the Group Vice President of Tax Affairs and members of his network foster, nurture and maintain ongoing, transparent relationships with tax authorities at every level. Whenever possible, the Group seeks to foster such relationships in every host geography. In 2019, for example, the Group signed a partnership agreement with the French tax authorities, under the “relationship of trust” framework set up by the Budget Ministry, whereby any major events likely to have a tax impact will be shared transparently. Naturally, the Group’s tax policies strongly condemn all forms of tax evasion and expressly forbid management from taking advantage of tax regimes deemed to be prejudicial or non-transparent. Similarly, Michelin does not engage in any transaction, financial or otherwise, that would have the effect of evading taxes or of optimizing its corporate tax liability without generating any other operational or economic benefit. A recurring effective tax rate of more than 20% and the lack of any tax adjustments or convictions for tax fraud attest to the effectiveness of the initiatives and tax governance in place to combat tax evasion. Furthermore, the Group’s presence in a given geography is based solely on operational decisions concerning our manufacturing or marketing operations and never on tax considerations. All tax risks are tracked specifically by the Tax Affairs Department, under the supervision of the Corporate Finance Department. The system for managing these risks is also governed by the Group’s tax policies. In line with its new obligations, the Group is deploying and tracking compliance with the global minimum taxation rules issued by the OECD’s Pillar Two initiative. The Michelin Group is a responsible taxpayer, complying with local and international legislation. We have developed our geographical footprint to be able to serve our customers, adding tangible value to their lives through our manufacturing, sales & marketing, development and services locations. The search for proximity, both in terms of relationships and geography, is even more relevant today with the challenges of managing our environmental footprint. We are actively engaged in developing our host communities and systematically comply with local legislation wherever we operate, with an unceasing commitment to paying our fair share of taxes and customs duties. In our tax transparency report(2), we share information on the topic, always with the same goal of fostering constructive dialogue with all our stakeholders. (1) Note that Florent Menegaux is a colonel in the French Army’s citizen’s reserve. (2) https://www.michelin.com/publications/informations-réglementées/rapport-transparence-fiscale. 294 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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