05 Financial performance Report of the Managers 5.1.4 d) Right-of-use assets Right-of-use assets, which are recognized separately from property, plant and equipment, came to €1,232 million at December 31, 2024, up €121 million year-on-year before translation adjustments. New leases on land and buildings exceeded depreciation on prior-year leases, in part due to the launch of a new distribution center in Ontario (Canada). 5.1.4 e) Non-current financial assets and other non-current assets Non-current financial assets and other non-current assets stood at €1,151 million at year-end, a €492 million decrease (before translation adjustments) stemming mainly from two factors: n a net decrease in loans and deposits due to: l the withdrawal of substantially all the funds held in escrow for the UK pension plans as part of the project to buy back the assets of the current plan, l the reclassification in current financial assets of the remaining tranche of the TBC dividend distributed in 2023; n a reduction in pension plan surpluses, primarily after the liabilities of the defined-benefit plans of the Michelin Group’s UK companies were transferred to the Aviva insurance company under a buy-in policy. 5.1.4 f) Investments in equity-accounted companies Excluding translation adjustments, investments in equityaccounted companies declined by €55 million over the year to €849 million. The slight decrease was led by the change in the method of consolidating Watèa following the acquisition of exclusive control by the Michelin Group. 5.1.4 g) Deferred tax At December 31, 2024, the Group held a net deferred tax asset of €537 million, representing a year-on-year increase of €110 million, before translation adjustments, that primarily reflected the restructuring operations announced during the year and the recognition of deferred tax assets in Mexico. 5.1.4 h) Trade working capital (in € millions) December 31, 2024 December 31, 2023 Change 2024 (as a % of sales) 2023 (as a % of sales) Inventories 5,699 5,447 +252 21.0% 19.2% Trade receivables 3,595 3,850 -255 13.2% 13.6% Trade payables (3,086) (3,075) -11 (11.3)% (10.8)% Trade payables under reverse factoring agreements (689) (530) -159 (2.5)% (1.9)% TRADE WORKING CAPITAL 5,519 5,692 -173 20.3% 20.1% Trade working capital decreased by €173 million over the year, as the decline in trade receivables and trade payables (in the broadest sense) more than offset the rise in the value of inventories. Inventories rose by €252 million year-on-year to €5,699 million at December 31, 2024, mainly due to the following factors: n a €103 million unfavorable currency effect; n higher average raw material costs in 2024, which fed through to an unfavorable price effect across every inventory class; n these factors were partially offset by efficient inventory management, which reduced both raw materials and semi-finished product volumes from year-end 2023 levels. 341 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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