05 Financial performance 2024 consolidated financial statements 15.3 Earnings per share 2024 2023 Net income (in € millions), excluding non-controlling interests 1,884 1,983 n Less, estimated General Partners’ profit shares (3) (3) Net income attributable to the shareholders of the Company used to calculate basic earnings per share 1,882 1,980 Weighted average number of shares outstanding (thousands of shares) used to calculate basic earnings per share 709,850 714,188 n Plus, adjustment for performance shares 7,110 5,450 Weighted average number of shares used to calculate diluted earnings per share 716,960 719,638 EARNINGS PER SHARE (in €) n Basic 2.65 2.77 n Diluted 2.62 2.75 At December 31, 2024, the only potentially dilutive financial instruments consisted of performance shares (note 8.2.1). No share transactions affecting the weighted average number of shares used to calculate basic earnings per share and diluted earnings per share occurred after the end of the 2024 reporting period. Note 16 COMMITMENTS AND CONTINGENCIES 16.1 Commitments 16.1.1 Capital expenditure commitments Capital expenditure on the main projects which were contracted but not delivered before December 31, 2024, amounts to €375 million (of which €304 million is likely to be delivered in 2025). 16.1.2 Other commitments The Group has many purchase commitments for goods and services. These commitments are in line with the level of activity expected in the first half of 2025. They are entered into on arm's length terms in the normal course of business. 16.2 Contingencies 16.2.1 Michelin Pension Trust Ltd UK and Fenner Pension Scheme Trustee Limited Following adoption of the Pensions Act 2004 in the United Kingdom, a multi-annual plan of contributions to the UK pension fund (the "Recovery Plan") was established between the Group’s UK companies and their pension funds. In order to limit the amount of contributions, the Group issued guarantees to the pension funds to cover the contributions to be made by its subsidiaries. Michelin Pensions Trust Ltd has also received an additional guarantee covering the possible insolvency of the participating entities. The risk is considered unlikely and the guarantee is capped at £100 million. The last Recovery Plan calculations were performed at March 31, 2023 and the next ones will be performed at March 31, 2026. The actuarial assumptions used to measure the Recovery Plan liability are generally more conservative than the ones used to measure defined benefit obligations under IAS 19. The amount of the Group's guarantee is equal to the difference, if positive, between the present value of future contributions and the amount of the provision booked in the accounts. However, at December 31, 2024, the plans had a surplus and the present value of future contributions did not exceed the provision booked in the Group’s accounts. Consequently, the amount of the guarantees given to the Michelin Pensions Trust Ltd UK and the Fenner Pension Scheme Trustee Limited was equal to zero at that date. For the Michelin Pension Trust Ltd, contributions are payable to the plan if the plan is underfunded. If the plan is overfunded, the contributions are deposited in an escrow account up to a certain level of overfunding, after which a contributions holiday is granted. When the amount in escrow exceeds a certain level, the local entity may apply for a refund. For Fenner UK Pension Scheme Trustee Limited, a contributions holiday is granted once a certain funding level is met. 413 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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