Financial performance Report of the Managers 05 Despite the €45 million increase from translation adjustments, trade receivables declined by €255 million year-on-year to €3,595 million at December 31, 2024. In addition to the decline in volumes sold, the substantial reduction reflected the effective initiatives undertaken to shorten payment terms and limit past-due payments. Trade payables, including those covered by reverse factoring contracts, rose by €170 million year-on-year to €3,775 million, due partly to the €78 million increase from translation adjustments and partly to the impact of inflation on unit costs of purchased inputs. 5.1.4 i) Cash and cash equivalents Cash and cash equivalents stood at €3,936 million at December 31, 2024, a sharp €1,430 million increase from a year earlier (before translation adjustments) that was due to the net impact of the following factors: n increases from: l the exceptionally favorable €2,226 million in free cash flow, l a €650 million increase in new debt, raised mainly through a €1 billion bond issue in May 2024; n decreases from: l the payment of €961 million in dividends; l the implementation of a share buyback program for a total cost of €502 million. 5.1.4 j) Total equity Including the €273 million change in translation adjustments, total equity rose by €675 million over the year to represent €18,634 million at December 31, 2024. The €402 million increase excluding translation adjustments was primarily due to the following factors: n the €1,617 million contribution from comprehensive income for the year, including: l €1,890 million in net income, l the €138 million unfavorable impact from post-employment benefit obligations, l the €44 million unfavorable impact of changes in the fair value of unconsolidated equity investments; n the €966 million impact from dividends and other payments; n the €502 million impact from the cancellation of bought-back shares; n the €122 million impact from the issuance of new shares, particularly in connection with the Bib’Action employee share ownership plan; n the €61 million impact from service costs on performance share plans. As a result, at December 31, 2024, the share capital of Compagnie Générale des Établissements Michelin stood at €352,873,636, comprising 705,747,272 shares outstanding corresponding to 998,581,514 voting rights. 5.1.4 k) Net debt Net debt stood at €3,112 million at December 31, 2024, down €169 million from December 31, 2023, mainly as a result of the following factors: n the positive €2,226 million in free cash flow; n €965 million in distributions, of which €961 million in dividends; n the outlay of €502 million as part of the share buyback program; n €37 million in proceeds from the employee share ownership plan; n a €414 million increase from the recognition of new leases; n a €208 million increase from translation adjustments. 342 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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