Financial performance Financial statements 05 Note 14 EXTERNAL CHARGES (in € thousands) 2024 2023 Outsourcing expenses (1,181,551) (1,062,405) Research and development expenses (390,119) (398,887) Miscellaneous (45,645) (45,699) TOTAL (1,617,315) (1,506,991) Note 15 INCOME TAX Compagnie Générale des Établissements Michelin is the parent company of a tax group that also comprises 19 French subsidiaries that are at least 95%-owned directly or indirectly. Under the terms of the group relief agreement, each subsidiary in the tax group continues to record the income tax expense that it would have paid if it had been taxed on a stand-alone basis and any group relief is recorded at the level of Compagnie Générale des Établissements Michelin. In 2024, the Company recorded an additional tax of €8.7 million under the Pillar Two tax rules. The income tax benefit recognized in the Company's financial statements comprises the following: (in € thousands) 2024 2023 Current tax due by the Company on a stand-alone basis (30,879) (28,690) Group relief 64,065 17,455 Pillar Two tax (8,754) - Other (870) (7,877) TOTAL 23,562 (19,112) Note 16 SHARE-BASED PAYMENTS Share grants and performance share plans Changes in the number of share grants and performance share rights outstanding are as follows: 2024 2023 At January 1 7,303,830 5,949,494 Granted 3,107,516 3,257,003 Forfeited (621,054) (1,061,855) Exercised (931,739) (840,812) AT DECEMBER 31 8,858,553 7,303,830 Excellence Plan In November 2024, 2,589,138 rights to performance shares were granted to Group employees and the Managers. The rights are subject to a four-year vesting period ending in November 2028 without any lock-up period. The shares will vest at the end of this period if the performance objectives are met (stock market performance, environmental performance of manufacturing operations, employee engagement rate, sales growth and ROCE). 452 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
RkJQdWJsaXNoZXIy NzMxNTcx