05 Financial performance 2024 consolidated financial statements A 0.5-point change in these rates compared with those used for 2024, all else being equal, would have the following effect: (in € millions) 0.5-point increase 0.5-point decrease Change in consolidated statement of financial position Discount rate on the defined benefit obligation (DBO) (353) 378 Inflation rate on the defined benefit obligation (DBO) 216 (211) Salary increase rate on the defined benefit obligation (DBO) 82 (74) Healthcare cost trend rate on the healthcare defined benefit obligation (DBO) 4 (4) Interest rates on the fair market value of plan assets (198) 210 Impact on consolidated income statement Discount rate on the aggregate of current service cost and interest cost on the obligation 11 (14) Inflation rate on the aggregate of current service cost and interest cost on the obligation 14 (13) Salary increase rate on the aggregate of current service cost and interest cost on the obligation 7 (7) Healthcare cost trend rate on the aggregate of the current service cost and interest cost on the healthcare plan obligation - - The asset allocation of fully and partly funded pension plans is as follows: December 31, 2024 December 31, 2023 Canada United States United Kingdom Other Total Canada United States United Kingdom Other Total Equities 5% 12% - - 6% 4% 10% - - 4% Government bonds 62% 25% - 17% 23% 66% 29% 34% 19% 37% Investment-grade corporate bonds 11% 46% - - 20% 12% 45% 32% - 32% Other bonds, credit and cash 13% 5% - 2% 5% 10% 4% 13% 3% 9% Funds managed by insurance companies - - 91% 81% 37% - - 7% 78% 6% Real assets 7% 6% - - 4% 7% 7% 1% - 4% Alternatives 3% 5% 9% - 6% 2% 5% 14% - 8% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Duration in years of bonds and cash 10.9 11.4 N/A 11.2 11.2 11.9 12.1 14.2 11.2 12.9 In the above allocation, “Equities” may include local and global listed equities and private equities; “Alternatives” may include hedge funds, mezzanine and distressed private debts; “Government bonds” may include government-like bonds as well as derivatives used to hedge interest rates and/or inflation; “Investment grade corporate bonds” correspond solely to those corporate bonds also used to hedge interest rates; “Other bonds, credit and cash” mainly includes high yield, senior private debt and cash; “Real assets” may include equity investments in real estate or infrastructure; “Funds managed by insurance companies” may include multi‑employer funds. Each manager’s assets are assigned in their entirety to one of the available categories which represents its main investment/mandate. 385 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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