_342 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE Report of the Managers Equity and liabilities (in € millions) December 31, 2023 December 31, 2022 Total change Translation adjustments Movement Share capital 357 357 0 0 Share premiums 2,702 2,702 0 0 Reserves 14,896 14,051 +845 -316 +1,161 Non-controlling interests 3 6 -3 0 -3 Total equity 17,958 17,116 +842 -316 +1,158 Non-current financial liabilities 4,672 4,705 -33 -16 -17 Non-current lease liabilities 738 690 +48 -13 +61 Provisions for employee benefit obligations 2,726 2,561 +165 -34 +199 Provisions and other non-current liabilities 860 695 +165 -8 +173 Deferred tax liabilities 497 541 -44 -6 -38 Non-current liabilities 9,493 9,192 +301 -77 +378 Current financial liabilities 591 1,826 -1,235 -32 -1,203 Current lease liabilities 241 233 +8 -4 +12 Trade payables 3,075 3,416 -341 -58 -283 Trade payables under reverse factoring agreements 530 595 -65 -16 -49 Provisions and other current liabilities(1) 3,307 2,968 +339 -61 +400 Current liabilities 7,744 9,038 -1,294 -171 -1,123 TOTAL EQUITY AND LIABILITIES 35,195 35,346 -151 -564 +413 5.1.4 a) Goodwill Goodwill before translation adjustments rose by €598 million in the year to December 31, 2023, primarily due to the following factors: ● the recognition of €576 million in provisional goodwill following the Group’s acquisition on September 26, 2023 of Flex Composite Group, Europe’s leading manufacturer of high-tech fabrics and films; ● the recognition of €18 million in goodwill following the Group’s acquisition on January 31, 2023 of EGC Enterprises, Inc. a US manufacturer of graphite-based sealing products(1). 5.1.4 b) Intangible assets Intangible assets stood at €1,794 million for the year, a €9 million decrease from December 31, 2022 before translation adjustments. The stability reflected the fact that additions to intangible assets were more or less in line with amortization charges for the year, particularly for software. 5.1.4 c) Property, plant and equipment Property, plant and equipment stood at €12,260 million at December 31, 2023, up €278 million before translation adjustments. The carefully managed increase reflected the Group’s commitment to pursuing the steady upturn in capital expenditure underway since 2022, following the period of slower growth caused by the Covid-19 crisis. Additions to property, plant and equipment amounted to €2,004 million for the year, compared with €1,919 million in 2022. Three quarters of total outlays were committed to production equipment and facilities. In addition, the acquisition of Flex Composite Group and completion of the purchase price allocation for RLU led to an increase in the property, plant and equipment base. (1) See notes 4.1.1 and 4.1.2 to the consolidated financial statements.
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