4 _283 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report 4.1.4.3 Guaranteeing the quality of our products and services SDG 3.6 and 11.2 Offering our customers the finest quality products and services in each market segment we decide to serve. Safety risks associated with tire products Tires are still Michelin’s core business, in which it holds robust leadership positions around the world and across every operating segment: automotive, road transportation (bus and subway tires) and specialty markets (two-wheel, aircraft, earthmover, agriculture, construction and materials handling tires). Like all tiremakers, if defects were to appear in its products during their use or if they failed to comply with applicable regulations, Michelin could be faced with liability claims or be required to recall the products. Specific nature of the risk Michelin’s focus on customer needs and the quality of its products and services has built confidence in the MICHELIN brand and contributed to the Group’s performance. Although there have been no material events in recent years, should a safety failure occur, this would have a serious adverse effect on the reputation of the MICHELIN brand(1). Michelin Quality Throughout Michelin’s history, the attention that the women and the men of the Company have paid to the needs of its customers and to the quality of its products and services has fostered confidence in the MICHELIN Brand and nurtured the Group’s performance. Quality remains critical to the safety of products and services and to their compliance with applicable requirements. Since its founding, Michelin has always nurtured a powerful quality culture. Enhancing the mobility of people and goods requires an uncompromising attitude towards the safety and quality of every product and service. Every Group employee, at every point in the value chain, is trained and engaged in delivering Michelin Quality to his or her customers. “Together, through the contribution of each employee and our commitment to continual improvement of our Quality Management System, we strive every day to guarantee the core promises we make to our Customers and Stakeholders.” (2) The product and service quality governance system comprises: ● a Corporate Internal Audit, Risk Management, Internal Control and Quality Department, which reports to the Group’s management bodies; ● a Quality Network at the operations level, comprising the Quality Departments in the business lines, operating units and regional organizations. The governance system defines the Group’s quality policies, including quality guidelines and standards underpinning its ability to sustainably deliver high value-added products and services to its customers and nurture their trust, as well as the trust of all of its other stakeholders. In each of the major areas of quality control – raw material and component procurement, product and service design and product manufacturing – the quality teams are empowered to perform their role and mission independently, including when deciding to bring a new product to market or to recall a product that does not comply with Group quality standards. The Quality Process Known as the Customer Promise Guarantee, the Michelin Quality Process is designed to deliver total customer satisfaction. Applied to every aspect of the business, it ensures that the Group: ● knows its customers and markets; ● develops products and solutions aligned with their needs; ● fulfills its commitments in implementing its solutions; ● clearly communicates its Promises to customers; ● detects shortfalls and responds quickly; ● measures customer satisfaction. (1) See section 2.1 Risk factors specific to Michelin, description and related management systems/Risk 12: Product safety. (2) Excerpt from Michelin’s Quality Statement.
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