Financial performance 2024 consolidated financial statements 05 16.2.2 Other contingencies In the normal course of business, the Group companies may be involved in administrative proceedings, litigation and claims. Although provisions have been recognized when the risks are established and an outflow of financial resources is probable, there exist uncertainties concerning some of these administrative proceedings, litigation and claims. In January 2024, the European Commission launched a competition inquiry into the tire industry in Europe. Michelin is one of the manufacturers concerned by the inquiry. In 2024, class actions were filed in the USA and Canada as a direct consequence of this inquiry. However, in April 2024, the Group lodged an appeal with the European Court of First Instance to have the decision authorizing the inspection annulled. As a reminder, the Group applies a strict policy of compliance with competition law across all of its businesses and in all of its host countries. In its public communication, the Commission has clearly stated that the opening of this inquiry does not prejudge the inquiry’s outcome. At the same time, Michelin has reiterated its right to be presumed innocent. No provision was set aside for this matter at December 31, 2024. In the opinion of Group management, there are no other governmental, judicial or arbitration proceedings likely to have a material impact on the Group's financial position or cash position. 16.3 Assets pledged as collateral 16.3.1 Property, plant and equipment (PP&E) PP&E pledged as collateral for debt amounted to €33 million (2023: €33 million). 16.3.2 Financial assets The €4 million held in an escrow account linked to the pension plan in the United Kingdom (2023: €125 million) is pledged to the pension plans and is therefore not freely available (note 9.4). Loans and deposits amounting to €40 million (2023: €43 million) are pledged as collateral for debt (note 9.5). 16.3.3 Trade receivables The Group runs two separate programs whereby certain European and North American subsidiaries have transferred ownership interests in portfolios of eligible trade receivables. The maximum financing that can be raised from these programs amounts to €492 million (2023: €390 million). Since the Group has substantially retained all the risks and rewards of ownership, the ownership interests in the trade receivable portfolios sold by the European and North American subsidiaries have not been derecognized and the financing received from the financial institutions, amounting to €15 million as at December 31, 2024 (2023: €15 million), has been recorded under "Loans from financial institutions and other” (note 9.3). 414 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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