_338 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE Report of the Managers BUTADIENE PRICES Employee benefit costs and number of employees Employee benefit costs came to €7,401 million or 26.1% of sales, up €451 million year-on-year, reflecting, in particular, adjustments in the compensation policy in response to high inflation. The 1.8-point year-on-year increase as a percentage of sales was also due to the time lag between the price increases (most of which were introduced prior to 2023) and the ongoing impact of inflation on payroll costs in 2023. Nevertheless, the rate remains slightly lower than in 2019. The relative year-on-year stability in headcount may be attributed to the efforts to streamline and reorganize the Group’s corporate operations, which offset the slight increase from the acquisition of Flex Composite Group in September 2023.(1) In 2023, €7,397 million in expenses were recognized in segment operating income and €4 million in other operating income and expenses (see notes 6 and 9 to the consolidated financial statements). (in € millions and number of people) 2023 2022 Change Total employee benefit costs 7,401 6,950 +6.5% As a % of sales 26.1% 24.3% +1.8 pts Employees on payroll at December 31 132,500 132,200 +0.2% Number of full-time equivalent employees at December 31 125,000 124,900 +0.1% Average number of full-time equivalent employees 125,000 121,700 +2.7% Depreciation and amortization (in € millions) 2023 2022 Change Total depreciation and amortization 2,008 1,944 +3.3% As a % of sales 7.1% 6.8% Depreciation and amortization charges rose by €64 million to €2,008 million for the year. The modest increase stemmed from the slight uptick in capital expenditure, which returned to suitable levels after several years shaped by the Covid-19 crisis and its impact on the global economy. Of the total, €1,917 million was recognized in segment operating income and €91 million in other operating income and expenses (see notes 6 and 9 to the consolidated financial statements). (1) See note 4.1.1 to the consolidated financial statements. US Gulf (USD/t) Europe (EUR/t) Jan. 2023 Dec. 2023 Jan. 2019 Jan. 2021 Jan. 2022 Jan. 2020 0 500 1,000 1,500 2,000 2,500
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