How would you assess the first years of the Michelin in Motion plan? >FM: The Group is continuing to execute its strategy and is on track to fulfill its 2030 ambitions. We’ve seen that by maintaining our course, we’ve been able to successfully navigate a complex, ever-shifting environment. Our strategy acts as a compass, guiding us to make the right choices. Because our destination is clear, we can constantly adjust our course to reach it. The second major lesson is the way that our strategy has strengthened our resilience. By deploying our core capabilities in new markets, the strategy is broadening our playing field and reducing our cyclical exposure. This was demonstrated once again this year by the growth in our nontire businesses. Lastly, this success has only been possible because the strategic plan’s six transformations are all delivering their benefits. We can see their real-life impact every day in the personal growth of our employees, in the experience we offer our customers, and in the design of our products, which are now engineered from the outset to minimize their life-cycle environmental impacts. These advances are interconnected, and it’s by driving all the transformations forward that we’ll be able to fulfill our ambitions. Do these results mark the success of your value-first approach? >FM: We want to create value simultaneously for people, the planet and our own bottom line. Value isn’t a niche strategy. Our customers recognize the quality and performance of our products. They’re willing to pay the right price for the real-world benefits we deliver. In this sense, value is embodied in our brand, which has always been a hallmark of trust and innovation. Value also stems directly from the quality of our employees, who work tirelessly to deploy our expertise and offer our customers the very best. By recognizing and promoting the value of what we do today, we’ll be able to design even more environmentally friendly products and services tomorrow, thanks to teams that are increasingly better trained and more engaged. The value-first approach is therefore a source of general progress that we think should benefit as many people as possible. What do you consider to be the highlights of the past year? >FM: The year was shaped by game-changing innovations and progress in every aspect of our business, as you’ll see in the following pages. But I’d like to come back to the announced winding down of some of our production plants in Germany and the United States. This is one of hardest decisions to make when you are looking to prepare a company to face the future, and we made it in response to changes in our competitive environment and structural factors impacting the competitiveness of our output. Despite the tremendous dedication and hard work of the plants’ employees, the situation made it impossible to maintain these operations without compromising the Group’s ability to make today’s performance the springboard for tomorrow's success. That’s why our current priority is to support not only every person directly impacted by these decisions, but also their communities. As Michelin has shown in the past, when such decisions have had to be made, the Group stands totally with the employees. Even after the facilities close, Michelin continues to assume its responsibility by proposing solutions, revitalizing the local ecosystem and creating new jobs. In the face of rising competitive pressure, Michelin is determined to continue strengthening its local-to-local production strategy, which makes the most environmental, financial and social sense. Making the most effective use of our existing capacity is fundamental, and one of the drivers of our future success. How does the global environment impact Michelin? >FM: As we all know, these are times of geopolitical rigidity and rising tensions. I believe that a company has a major responsibility in responding to these challenges, as well as an important role to play. At Michelin, we pay particular attention to deepening our social cohesion, which is the foundation of our performance over time. By deploying our universal social protection floor, but also by offering all employees at least a living wage, we’re making sure that everyone in the corporate community can access a set of guaranteed fundamental rights that enable them and their families to live with dignity and cope with the unexpected. One thing about us is that we don't give up. Where others see threats, we choose to see opportunities. We are always part of the solution. That’s our DNA and our unshakable faith in human progress. The non-tire businesses, whose sales rose by 10% over the year, are proving to be a sustainable growth engine for the Group. I'm thinking, for example, of conveyors, which are part of our high-tech materials business, or our fleet services. The integration of Flex Composite Group is going smoothly and is already creating value. The performance of our Lifestyle operations is also promising. 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN _5
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