05 Financial performance 2024 consolidated financial statements 8.1.2 Defined contribution plans Some companies support their employees in building up retirement savings through defined contribution plans. In 2024, the contributions paid to defined contribution plans and expensed amounted to €288 million (2023: €256 million). The main defined contribution plans are in the United States, France and Canada. United States The defined contribution plans in the United States include the Michelin Retirement Account Plan (MRAP) and various 401(k) plans. The 401(k) plans are voluntary and are funded by employee contributions with employer matching contributions. Canada The defined contribution plans in Canada include the Defined Contribution Plan for the Employees of Michelin North America (Canada) Inc. as well as a registered retirement savings plan (RRSP). The defined contribution plan is funded by employer contributions and optional employee contributions with employer matching. United Kingdom The main defined contribution pension plan in the United Kingdom is the Michelin Pension and Life Assurance Plan, DC Section. The plan is funded by employee and employer contributions. Employees may also make optional contributions to the plan, which will be partly matched by the Group. France There are two defined contribution pension schemes in France for the majority of employees: PERO (former Article 83) and PERCOL (former PERCO). The PERO is a mandatory retirement savings plan that is funded by contributions from employees and the employer. The PERCOL is a voluntary retirement savings plan. Employee contributions to the plan are matched by capped employer contributions. 8.2 Share-based payments ACCOUNTING POLICIES Share grants and performance share plans The Group may adopt plans to grant free shares of the Company to certain employees or to its Managers. The grant date is the date when the Managing Chairman decides on the list of plan beneficiaries and the number of performance shares granted to them. The fair value of the performance shares granted corresponds to the Company's share price on the grant date less: n the present value of dividends that will not be received by the grantees during the vesting period; n the value of the stock market performance condition on the grant date, which depends on the probability of the condition being fulfilled. The number of shares that will ultimately be issued at the end of the vesting period depends on the extent to which the service conditions and any Group-related performance conditions are met. The total benefit cost is based on the fair value of the performance shares and the estimated number of shares that will ultimately be issued. This cost is recognized over the vesting period and is recognized in “Segment other income and expenses”. Employee share ownership plan The Group may offer most of its employees the opportunity to participate in a share ownership plan allowing them to purchase Company shares. These shares, which are subject to certain restrictions relating to their sale or transfer, may be purchased by the employees at a subscription price based on the Michelin share price, less a discount. The benefit granted to the employees equals the difference between the fair value of the shares acquired and the price paid by the employees, multiplied by the number of shares acquired. It is expensed immediately by the Group, as no vesting period applies, and is recognized under “Employee benefit costs – share-based payments”, within “Segment other income and expenses”. 387 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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