_348 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE Report of the Managers Additions to intangible assets and property, plant and equipment amounted to €2,236 million in 2023, compared with €2,141 million in 2022. Capital expenditure committed during the year rose somewhat versus 2022 and returned to suitable levels after several years shaped by the Covid-19 crisis and its impact on the global economy. By Business Line, the main capital projects completed during the year or still underway as part of competitiveness, product line renewal and growth investment programs are as follows: Automotive tires: ● in Mexico, North America and China; Road transportation tires: ● in Romania and North America; Specialty products: ● Mining tires; ● Beyond-road tires, with a focus on tread production in North America. All these capital projects were supported by the commitments presented below. CAPITAL EXPENDITURE (in € billions) “Investment grants received and change in capital expenditure payables” corresponds mainly to changes in capital expenditure payables. 5.1.5 c) Free cash flow Free cash flow, which is stated before dividend payments and financing transactions, corresponds to net cash from operating activities less net cash used in investing activities, adjusted for net cash flows relating to cash management financial assets and borrowing collaterals. (in € millions) 2023 2022 Change Net cash from operating activities 5,287 1,931 +3,356 Routine capital expenditure (maintenance, IT, dealerships, etc.) (933) (744) -189 Competitiveness and growth investments (1,108) (1,202) +94 Investments in new ventures (195) (194) -1 Other (42) 105 -147 FREE CASH FLOW BEFORE ACQUISITIONS 3,009 (104) +3,113 Acquisitions (666) (76) -590 FREE CASH FLOW AFTER ACQUISITIONS 2,343 (180) +2,523 Free cash flow before acquisitions ended 2023 at a positive €3,009 million, compared to a negative €104 million a year earlier. This was after €2,236 million in capital expenditure and investments, of which €1,108 million was earmarked for competitiveness and growth projects. Free cash flow after acquisitions stood at a positive €2,343 million. The net €666 million in net acquisition outlays primarily corresponded to the acquisition of Flex Composite Group in September 2023 and the sale of a partial stake in Symbio in July. 1.7 2.1 2.2 1.2 1.7 In € billions As % of sales 2018 2019 2020 2021 2022 2023 1.8 7.6% 7.5% 6.0% 7.1% 7.5% 7.9%
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