_420 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements An internal group of experts, composed of the chairs or Chief Investment Officers of the main investment committees and Group specialists, has issued investment guidelines for the local investment committees presenting investment best practices. In particular, the guidelines state that direct investments should not be made in Michelin securities or properties used by the Group. Fund managers are not subject to such restrictions. The Group has not invested material amounts in its own securities. Michelin does not occupy or use any of the real estate assets included in the various portfolios. The Group is not in possession of comprehensive information on the underlying assets held in insurance funds or alternative investments. In most countries, assets are managed by local independent boards, in accordance with local pension laws. The boards are required by their bylaws as well as by law to act in the best interest of the fund and all relevant stakeholders, i.e., current and future beneficiaries as well as employers. Asset allocation analyses are performed periodically, generally every three to five years, by an independent fiduciary body (Investment Board, Board of Trustees) based on recommendations made by independent advisors (actuaries, consultants, banks or investment management firms). The asset allocation takes into account the structure of employee-related liabilities and their terms. In the event of a sharp increase in the funding ratio, an asset allocation analysis should be performed to ensure the target allocation is still appropriate. Government and investment-grade corporate bonds are used to hedge the interest rate risk as well as, in some cases, the credit spread and inflation risks. The larger plans also use completion managers to implement custom solutions in order to hedge key rates in accordance with the policy set by each pension fund. These assets are in the “Government bonds” category. Foreign exchange risks may be hedged when the exposure to a foreign currency is considered to be non-negligible. The liability-driven investment strategy used by the United Kingdom pension plans was disrupted by the interest rate volatility triggered by the publication of the Government's minibudget in September 2022, leading the Michelin Pensions Trust Ltd to temporarily scale back its interest rate hedging program for a few weeks. The situation returned to normal in early December 2022. The actuarial loss recorded in “Other comprehensive income” was limited. Group contributions to pension plans and benefit payments made by these plans in 2023 and to be made over the following ten years are as follows: (in € millions) Pension plans Other plans Group total United Kingdom (UK) Europe excluding UK North America and Other* United Kingdom (UK) Europe excluding UK North America and Other* CONTRIBUTIONS PAID AND BENEFITS PAID DIRECTLY BY THE GROUP 2023 3 44 3 - 9 48 107 ESTIMATES OF CONTRIBUTIONS TO BE PAID AND BENEFITS TO BE PAID DIRECTLY BY THE GROUP 2024 3 63 3 - 16 51 136 2025 3 61 43 - 14 51 172 2026 3 73 59 - 31 49 215 2027 3 89 59 - 27 48 226 2028 1 67 61 - 38 48 215 2029-2033 3 369 291 1 258 223 1145 * Payments for "Other" are not material.
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