Compagnie Generale des Etablissements Michelin
Annual Report 2018

Plain-text annual report

www.michelin.com OUR STRATEGIC VISION IS INSPIRED BY SUSTAINABLE MOBILITY 2018 Annual and Sustainable Development Report THE JOURNEY TO SUSTAINABLE PERFORMANCE In recent years, the Michelin Group’s operating environment has been shifting constantly, as new competition disrupts our markets, new needs emerge from our customers, new technologies reshape our industry, the digital paradigm profoundly transforms our organization and the expectations of our stakeholders, and new geopolitical realities call old certainties into question. All of these changes represent exciting challenges for the Group. To meet them, Michelin is leveraging a number of proven strengths: an assertive corporate mission widely embraced across the enterprise, an ambitious strategy focused on the long term, a global brand that serves as a foundation of trust and value, and engaged employees who have always been able to foresee and respond to the emerging aspirations of our customers and stakeholders. A shared vision Underpinning the strength of the Michelin Group is the seamless alignment between its corporate purpose, its strategic vision and its commitments, as it offers everyone a better way forward and improves the mobility of its customers. By building on these fundamentals, the Group considerably stepped up its transformation over the past year, in particular by deploying a new organization designed to embed customers and employee empowerment into every aspect of the business. Among the many valuable lessons learned from the new operating procedures has been the need to adjust the Group’s executive bodies, so as to make decision- making processes clearer, faster and more closely aligned with critical corporate and market issues. Changes in the Group Executive Committee take effect on March 28, 2019 and a Group Management Committee has been created. Responsible governance At Michelin, corporate governance is a solid process focused on long-term responsibility, with a clear segregation of management and supervisory powers. Robust results Across the Michelin community, employees all share the Group’s commitment to simultaneously improving its financial, environmental and social responsibility performance. diversified operations Michelin delivers superior quality tires, high-tech materials, solutions and services for everything that rides, travels or is carried on every continent around the world. The segment and geographic diversity of its markets is fostering its long-term growth. A sustainable mobility enabler Michelin is helping to make mobility safer, more affordable, more efficient and more environmentally friendly by organizing cooperation among the various stakeholders in the sustainable mobility ecosystem. Michelin 2018 annual report Differing perspectives Jean-Dominique Senard, Managing Chairman Florent Menegaux Managing General Partner Yves Chapot, General Manager A SHARED VISION 1 What can you tell us about Michelin in 2018? Jean-Dominique Senard: 2018 was a successful year. The commitment of our teams enabled us to deliver a robust performance, in line with our 2020 objectives. In a challenging environment shaped by the decline in the Chinese market, lower demand for original equipment Passenger car tires in Europe and sharp declines in emerging market currencies, we delivered growth in our sales volumes. We defended our operating margin well and generated higher structural free cash flow. We also completed the strategic acquisitions of Camso and Fenner, which together represent additional full-year sales of around €1.7 billion. With them, Michelin has stepped up its expansion in new markets, become the global market leader in off-the-road mobility and opened up promising new prospects in high-tech materials. Yves Chapot: Market access for our products is a priority. To broaden and build on it, we entered into three partnerships during the year, including a major alliance in North America, where we partnered with Sumitomo to create the region’s largest tire wholesaler, TBC. In addition, we joined forces with the auto service center chain Mobivia-A.T.U. in Europe and with the distributor CFAO in Africa. Florent Menegaux: Our global footprint was strengthened during the year. We commissioned a premium car tire plant in Mexico and a synthetic rubber plant in Indonesia, in partnership with Petrokimia Butadiene Indonesia. With the Indonesian plant and the rubber compound unit we already operate in Thailand, we can now meet the strong demand for low rolling resistance tires in Asia. Michelin 2018 annual report “With Michelin’s governance, we’ve been preparing all year long for the changeover in Group leadership, for a smooth, efficient transition.” Jean-Dominique Senard, Managing Chairman 2 Are you going to pursue your strategy of partnerships and acquisitions? J-D. S.: Michelin’s strategy is informed by its purpose of “offering everyone a better way forward.” We want to be a global leader in sustainable mobility and a company demonstrating sustainability in every aspect of its business, including financial performance, the environment, employee relations and social responsibility. Our acquisitions are expected to support this vision, and 2018 was an important year for completing a series of transactions that are moving us in the right direction. In 2019, the priority will be successfully integrating the newly acquired businesses into the Group and closing the acquisition of Indonesian tire manufacturer Multistrada. In fact, we began 2019 by taking up an 88% stake in Multistrada, which has net sales of around €270 million. The same transaction involved the purchase of a 20% stake in wholesaler PT Penta. Together, this has stepped up our expansion in the most populous country in Southeast Asia, which is a fast-growing market, and given us efficient, competitive production capacity in the region without having to build any new facilities. F. M.: These alliances are helping to strengthen the Michelin Group in its four core businesses: high quality tires adapted to our customers’ that make needs; services and solutions vehicle fleets more efficient and productive; experiences, information and services that make mobility easier and more pleasant for that consumers; and high-tech materials underpin the performance of our tires over time and that we can market in other industries. Our partnerships and acquisitions are helping to enhance our products and services, accelerate their digitalization, and expand our innovation capabilities. We have than 300 research and development partnerships. We support startups by helping them to optimize and process engineer their innovations that will make the world more sustainable. formed more “I fully embrace Michelin’s humanistic vision of enhancing mobility, using technology to improve people’s well-being and innovating to open new ways forward.” Florent Menegaux Managing General Partner 3 Looking forward, what are the main challenges facing Michelin? J-D. S.: Digitalization is transforming the way we work, the way we innovate and the way we collaborate. It’s enabling us to manage the enterprise in a flatter, more efficient way, while nurturing deeper, richer relationships with our customers. In 2018, we introduced a simpler, more agile organization that is also more customer focused. Our new management model empowers our teams, frees up our collective intelligence, fosters a more open, inquisitive mindset and encourages everyone to take charge of their own growth. We’re going to continue building on this. F. M.: Society is changing, and companies are confronting new challenges. When it comes to social and environmental issues, companies are expected to get involved and come up with solutions. Our own engagement is reflected in our commitment to making tires that deliver the same high performance throughout their useful lives and in our initiatives to support sustainable urban mobility, the circular economy, carbon taxation and apprenticeship programs. “In areas like training, the social safety net, the environment and climate change, companies have to take the lead in offering solutions. We’re doing our part.” Yves Chapot, General Manager also ranked Y. C.: In 2018, Michelin topped the list of America’s Best Large Employers1 among world and companies with the best reputation.2 We have to live up to this recognition. We have to continue to improve the way we fulfill all our responsibilities, digital that demonstrating revolution currently underway across the manufacturing industry can be an opportunity for everyone.  the Y. C.: We also want our end-users to enjoy a quality of service that reflects the quality of our tires. That’s why we’re investing in dealerships and forging partnerships with franchised or independent wholesalers, specialty chains and retailers. In particular, we provide them with turnkey services, training and solutions so that they can take advantage of the growth in online sales. 1 Forbes, America’s Best Large Employers 2018. 2 Reputation Institute, Global RepTrak® 2019: Michelin ranked eighth in the 15 countries surveyed worldwide and number one in France Michelin 2018 annual report BUSINESS MODEL AND CORPORATE GOVERNANCE A BUSINESS MODEL THAT CREATES VALUE FOR EVERYONE OUR PURPOSE: OFFERING EVERYONE A BETTER WAY FORWARD OUR SUSTAINABLE GROWTH STRATEGY: SUSTAINABLY IMPROVING CUSTOMER MOBILITY BY OFFERING: Tires seamlessly aligned with customer needs Services and solutions that make mobility more efficient Digital services, maps and guides for an outstanding customer experience Our expertise in high-tech materials to innovate sustainably TO MAKE SUSTAINABLE MOBILITY: Safe Affordable Effective/Efficient Clean A CUSTOMER-CENTRIC ORGANIZATION 14 global Business Lines that design solutions to meet the needs of customers with similar expectations 10 Regions responsible for increasing sales and managing customer relationships 8 Operating Units whose capabilities and expertise support the Regions and Business Lines in their commitment to superior customer service 1 lean Corporate Unit with departments focused on their strategic missions to serve our customers Michelin 2018 annual report THE GROUP EXECUTIVE COMMITTEE as of March 28, 2019 Michelin is led by Jean-Dominique Senard, Managing Chairman and Managing General Partner, assisted by a 10-member Executive Committee. 1 2 3 4 5 6 7 8 9 10 11 1. JEAN-DOMINIQUE SENARD Managing General Partner and Managing Chairman until May 17, 2019 2. FLORENT MENEGAUX Managing General Partner and Managing Chairman effective May 17, 2019 3. YVES CHAPOT General Manager and Chief Administrative and Financial Officer effective July 31, 2019 4. SONIA ARTINAN-FREDOU Services & Solutions, High-Tech Materials 5. LAURENT BOURRUT Road Transportation, Distribution, Europe Regions 6. ADELINE CHALLON-KEMOUN Brands, Sustainable Development, Communication and Public Affairs 7. SCOTT CLARK Automotive, Motorsport, Mobility Experiences, North, Central and South America Regions 8. JEAN-CHRISTOPHE GUÉRIN Manufacturing 9. SERGE LAFON Specialties, Africa/India/Middle East, China, East Asia & Australia Regions 10.JEAN-CLAUDE PATS Personnel 11. ÉRIC VINESSE Research and Development. the supervisory board The Supervisory Board exercises permanent oversight of Michelin’s management and assesses its quality on behalf of the shareholders. 1.OLIVIER BAZIL Independent member Chairman of the Audit Committee 2.JEAN-PIERRE DUPRIEU Independent member Member of the Audit Committee 3.ANNE-SOPHIE DE LA BIGNE Independent member Member of the Audit Committee Member of the Compensation and Appointments Committee 4.CYRILLE POUGHON Non-independent member (non-executive) Member of the Audit Committee 5.BARBARA DALIBARD Senior independent member Chair of the Compensation and Appointments Committee 6.MICHEL ROLLIER Non-independent member (non-executive) Chairman of the Supervisory Board Member of the Compensation and Appointments Committee 7.ARUNA JAYANTHI Independent member Member of the Compensation and Appointments Committee 8.MONIQUE LEROUX Independent member Member of the Audit Committee 9.THIERRY LE HENAFF Independent member Michelin 2018 annual report 2018: ROBUST RESULTS FINANCIAL HIGHLIGHTS ENVIRONMENTAL INDICATORS SALES in € millions ENERGY CONSUMPTION in Gj per tonne of finished product 1 Gj = 277.5 kWh 19,553 21,199 20,907 21,960 22,028 13.3 13.1 12.5 12.1 12.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 OPERATING INCOME1 in € millions OPERATING MARGIN 1 as a % of net sales CO2 EMISSIONS in tonnes per tonne of finished product 2,170 2,577 2,692 2,742 2,775 1.16 1.09 0.99 0.89 0.88 11.1% 12.2% 12.9% 12.5% 12.6% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 1. For the reporting segments. NET INCOME in € millions WATER CONSUMPTION in cu.m per tonne of finished product 1,031 1,163 1,667 1,693 1,660 11.2 10.5 9.3 8.6 8.1 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Michelin 2018 annual report 2018: ROBUST RESULTS SOCIAL RESPONSIBILITY OUTCOMES EMPLOYEE INDICATORS CSR ASSESSMENTS OF KEY SUPPLIERS 78% are confirmed in compliance with Group’s CSR standards 117,400 EMPLOYEES 263 419 547 654 66% 74% 77% 78% 2015 2016 2017 2018 PAID WORKING DAYS DEVOTED BY MICHELIN EMPLOYEES TO LOCAL COMMUNITY OUTREACH 23,942 31,612 in 2014 in 2016 27,733 33,800 in 2015 in 2017 34,800 in 2018 LOCAL JOBS CREATED WITH THE HELP OF MICHELIN DEVELOPMENT 2 1,988 1,665 1,695 1,918 1,822 61.7% 29.3% 9.0% Production operators Administrative employees, technicians and supervisors Managers WORKPLACE SAFETY TCIR3 2.8 2.7 2.5 2.1 1.9 2014 2015 2016 2017 2018 3. Total Case Incident Rate: the number of incidents recorded per 200,000 hours worked. 97% of employees trained in 2018 76% of managers promoted from within 2014 2015 2016 2017 2018 2. Since 1990, Michelin Development has helped to create more than 36,000 jobs in the Group’s local labor markets in France, Spain, Italy, the United Kingdom, Canada and the United States. Michelin 2018 annual report 80% of employees feel engaged diversified operations* AUTOMOTIVE AND RELATED DISTRIBUTION ROAD TRANSPORTATION & RELATED DISTRIBUTION 2018 UNIT SALES 27 % original equipment 73% replacement 68% mature markets 32% growth markets €M Net sales Operating income1 Operating margin1 2018 11,340 1,314 11.6% 2019 % change** 11,953 1,465 12.3% - 5.1% - 10.3% - 0.7 pt 1. For the reporting segments. ** Reflecting the deconsolidation of TCi in North America. 2018 UNIT SALES 28 % original equipment 72% replacement 63% mature markets 37 % growth markets €M Net sales Operating income1 Operating margin1 1. For the reporting segments. 2018 5,852 513 8.8% 2019 % change** 5,946 483 8.1% - 1.6% + 6.0% + 0.6 pt CHANGE IN THE GLOBAL MARKET compared with 2017 CHANGE IN THE GLOBAL MARKET compared with 2017 ORIGINAL EQUIPMENT REPLACEMENT ORIGINAL EQUIPMENT REPLACEMENT Europe, Russia, CIS North America Central America South America Asia, excluding India Africa, India, Middle East Total - 2% -1% + 1% + 3% - 4% + 4% - 2% + 2% + 3% + 4% - 8% - 2% + 0% + 1% Europe, Russia, CIS North America Central America South America Asia, excluding India Africa, India, Middle East Total + 3% + 19% - 8% + 54% - 6% + 10% + 1% + 0% + 7% + 4% + 2% - 5% - 1% - 2% 2018 CONTRIBUTION 51% 47% 2018 CONTRIBUTION 27% 18% of consolidated sales of operating income1 of consolidated sales of operating income1 MORE THAN 16.5 MILLION MICHELIN LIFESTYLE- LICENSED PRODUCTS SOLD IN 2018 31    FACILITIES IN16    COUNTRIES THE EUROPEAN LEADER IN MAPS, GUIDES, DIGITAL TRAVEL- SUPPORT SERVICES AND RESTAURANT BOOKINGS THE WORLD LEADER IN ENERGY-EFFICIENT TIRES THE WORLD LEADER IN ENERGY-EFFICIENT RADIAL TIRES 21     FACILITIES IN14     COUNTRIES Michelin 2018 annual report diversified operations* SPECIALTY BUSINESSES AND RELATED DISTRIBUTION 2018 UNIT SALES 48 % mature markets €M Net sales Operating income2 Operating margin2 52% growth markets 2018 4,836 948 19.6% 2017 % change3 4 061 794 19.6% + 19.1% + 19.4% + 0.0 pt 2018 CONTRIBUTION 22% 34% of consolidated sales of operating income2 2. For the reporting segments. 3. Including the impact of the Fenner acquisition. THE EUROPEAN LEADER IN MOTORCYCLE AND SCOOTER TIRES THE WORLD LEADER IN RADIAL EARTHMOVER, AGRICULTURAL AND AIRCRAFT TIRES AND OFF-THE-ROAD SOLUTIONS 14      FACILITIES IN7 COUNTRIES *As part of the new organization introduced in 2018, the Group’s reporting segments have been adjusted as follows: - Replacement Light truck tires are now part of the Road transportation segment. - Construction Truck tires are now included in the Specialty business segment, which also covers mining, earthmover, agricultural, two-wheel and aircraft tires, plus high-tech materials. - The maps, guides, digital travel-support services, restaurant booking services and Michelin Lifestyle product licensing businesses have been transferred to the Automotive division. Michelin 2018 annual report THE GLOBAL SUSTAINABLE MOBILITY ENABLER $7.232bn The value of the MICHELIN brand in 2019, according to Brand Finance 2019 Brand Value Results Overview Ranked the top French company Brand 8th overall among the world’s 100 most reputable companies in the Global RepTrak 2019 survey Michelin Man, named “Icon of the Millennium” Advertising Week, 2018 An unrivaled brand portfolio * people in 171 countries 117,400  54 + 5,000 production facilities4 dealerships, distribution hubs and service centers The world’s leading source of innovation in support of sustainable mobility 6,000 researchers and technicians €648m invested in R&D in 2018 A GLOBAL FOOTPRINT NET SALES BY REGION 39% Europe5 36% North America6 25% Other regions 4. Tire plants only (except Camso). 5. Including Russia & CIS. 6. Including Mexico. * Except in Europe (including the countries in the former Soviet Union) and in Africa and the Middle East. The 2018 Movin’On Summit brought together more than 4,000 participants from 67 countries. The next event will be held June 4-6, 2019 in Montreal. 70 speakers, 248 experts in 45 working sessions. This is Jean-Dominique Senard, Chief Executive Officer of the Michelin Group. Enabling tomorrow’s mobility WORKING TOGETHER TO IMPROVE SUSTAINABLE MOBILITY In 2017, the Movin’On by Michelin global summit followed on from the Michelin Challenge Bibendum, twenty years after its creation. The new event brings together every mobility ecosystem in a collaborative commitment to transforming ambition into action and making mobility more innovative and sustainable. T ransportation accounts for nearly a quarter of all emissions from the burning of fossil fuels, making it the third leading source of greenhouse gas emissions. As a truly global sustainable mobility summit, Movin’On brings together for three days every year some 4,000 decision-makers and influencers, manufacturers, experts, academics, startuppers, politicians, journalists, transportation authorities and NGOs to debate and enable the future of sustainable mobility. Building on the success of the first event in 2017, Movin’On 2018 focused on transforming ideas into solutions and creating actionable tools to make intelligent, sustainable and multimodal global mobility a reality. Among the second summit’s inno- vations were unique trials that ins- pired participants to think outside the box, a village of 40 startups selected through a global contest and a toolbox to help decarbonize transportation systems. Developed by ITF, WBCSD, WWF and PPMC and tested by summit the collaborative tools are available on participants, movinonconf.com platform created to engage everyone in sharing knowledge and taking action. “The ecosystem approach enables us to innovate more efficiently by improving everyone’s understanding of sustainable mobility issues and their possible solutions” Alexis Offergeld, Director of Movin’On LAB IDDRI, these Enabling tomorrow’s mobility In addition to these collaborative tools, the Movin’On spirit also lives on throughout the year in the Movin’On LAB, a “think and action tank” created by Michelin that comprises nearly 300 leading manufacturing and consulting companies, innovators, researchers and public and private organizations. Together, they form the world’s leading innovation-driven sustainable mobility network. As an integral part of the Movin’On Summit, Movin’On LAB provides an on-going, year-round forum where members can share their expertise and opinions concerning various aspects of the mobility of tomorrow, as part of issue-specific communities. Published in 2018, the first position paper from one of the communities, Speeding Up to <2°C, expresses a vision shared by nearly twenty leading mobility stakeholders. It identifies the most promising short-term solutions to help keep the average rise in global temperatures below 2°C. Compared to a business-as-usual scenario, deployment of the highlighted solutions would reduce CO2 emissions from transportation by 5% to 12% in 2030. This represents 15% to 40% of the effort required by the transportation industry according to the “beyond 2°C” scenario. 80% Michelin’s vision for the next thirty years is that its tires will incorporate up to 80% sustainable materials and that every effort will be made, across every stakeholder industry, to ensure that 100% of end-of life tires are recycled or reused as fuel. MICHELIN, A TRUSTED THIRD PARTY IN SUSTAINABLE MOBILITY As a driving force in sustainable mobility, Michelin is taking the lead in bringing together a growing number of partners. One example is the Paris Process on Mobility and Climate (PPMC), which produced a roadmap for the decarbonization of transportation by 2050. Today, it is focusing on three core challenges: improving air quality, combatting global warming and supporting the energy transition. The PPMC is also promoting practical clean mobility solutions, such as the hydrogen-powered electric mobility systems that Michelin is supporting, both directly and by helping hydrogen energy startups bring their innovations to the production stage. Michelin 2018 annual report 600 tests of next generation sustainable mobility vehicles and technologies. 40 startups invited to present their innovations PPMC is also the impetus behind the Global Macro-Roadmap (GMR) presented at COP 23 and designed to guide effective implementation of the Paris Agreement by the mobility sector. OFFERING EVERYONE A BETTER WAY FORWARD: THE CORPORATE PURPOSE OF A WORLD LEADER IN SUSTAINABLE MOBILITY FOUR AREAS OF GROWTH Michelin is driving growth in four areas that will help to make mobility safer, more affordable, more efficient, cleaner and more comfortable. TIRES SERVICES & SOLUTIONS MOBILITY EXPERIENCES HIGH-TECH MATERIALS A pioneer in connected tires, the Group offers professionals services and solutions that improve the performance, safety and environmental footprint of their business operations. The technology leader in tires for every form of mobility, Michelin designs, manufactures and distributes tires seamlessly aligned with the needs and usage patterns of every customer, with the goal of delivering consistent performance over time. Michelin markets maps, guides, digital services and exclusive solutions that make mobility easier and enable customers to enjoy unforgettable experiences while on the road. Another area with high-growth potential is Michelin’s widely recognized expertise in materials chemistry and physics, which it is expanding through acquisitions and actively marketing to other industries. Michelin is broadening its business base and transforming itself to meet the emerging expectations of its customers. CLOSER TO THE CUSTOMER Michelin’s transformation is being supported by the new organization introduced in 2018 to drive faster growth, by simplifying our operations and making them more flexible and more agile. The global Business Lines design solutions in response to the expectations of different customer groups, such as driving enthusiasts, long-haul truckers or mining companies. Customer relationships are now managed by the Regions, whose contours have been redefined to reflect local cultural affinities. The Operating Units provide their expertise and support. The Corporate Unit has been streamlined, with a leaner management structure and corporate departments refocused on their strategic missions. MORE ENGAGED Simplification also involves increasing employee empowerment, with decisions made as close to operations and customers as possible and initiative and dialogue actively encouraged. This trust-based relationship fosters engagement and drives faster transformation by motivating everyone to contribute to the process. At the same time, the Group is giving all employees opportunities to grow and encouraging everyone to play a leading role in managing their careers. Deployed in 2018, the InTouch digital platform enables every employee, at any time and on any screen, to assess their skills, choose a training program, view in-house job openings and submit transfer requests. “It is by undertaking an in-depth transformation that Michelin will remain truest to its founding spirit, its values and its future destiny.” Jean-Dominique Senard, Managing Chairman Human Life 4.0 The Group is stepping up its digitalization with the deployment of new solutions for its customers, suppliers and employees. Our Factory of the Future and FactoLab programs are preparing new Human-Machine cooperation systems that will improve working conditions and encourage every employee to be more creative. Digital manufacturing technology and empowerment are putting data to work for the men and women on the shopfloor, giving them more autonomy, increasing efficiency, quickening response times and reducing their unit’s environmental footprint. Demonstration trials conducted in 2018 have paved the way to roll-out in 70 Group plants in 2019. FactoLab, a public-private laboratory, is committed to improving working conditions, for example, with collaborative robots that can eliminate the most strenuous manual tasks. After being deployed worldwide in 2018, Engage, our new customer relationship management system, is now being used by nearly 4,000 marketing, sales and customer service employees and by 100,000 customers and dealers. It is bringing us closer to our end-users and helping us to understand them better. The next step will be to integrate artificial intelligence to improve tire management over time, for example, by using image analysis to warn customers when a tire change is absolutely necessary. MORE OPEN Mobility, especially in its sus- tainable forms, is now being facilitated by a growing num- ber of operators. Addressing the related issues requires a new, multi-dis- ciplinary approach, bringing togeth- er public authorities, private sector stakeholders and NGOs. Already the world leader in advanced tire research and development, we are expanding our ecosystem with a forward-facing open innovation strategy, involving more than 300 research partnerships, an Incubator Program Office (IPO), a venture capital fund, joint ventures and co-developments. We also play a recog- nized role as a trusted partner in bringing together sustainable mobility stakehold- ers to pursue shared initiatives. in the Group’s Deeply embedded DNA is the belief that innovation and progress must serve people and society for the better. Michelin is committed to demonstrating that the Fourth Industrial Revolution is an opportunity for everyone.   “Our sales, marketing and customer service teams are working together in real time on the same platform with a view to improving the customer experience. Our systems are now totally customer- centric. A pool of experts has been formed to continuously enhance that experience by leveraging the latest technological innovations, like artificial intelligence.” Sophie Foucque, Chief Digital Officer, B to B, Engage Project Manager “Human Life 4.0, our digitalization strategy, sends a strong message that at Michelin, the future will be digital and people-focused.” Florent Menegaux, Managing General Partner Michelin 2018 annual report Four areas of growth TIRES The new MICHELIN Alpin 6 winter tire offers motorists excellent traction, acceleration and grip on snowy roads. Both directly and through its dealership networks, Michelin is dedicated to designing and delivering tires that meet every user expectation. Our goals are to increase net sales in the tire business by 20% by 20201 and to reduce the amount of energy used by a tire per kilometer by 20% by 20302 (compared with 2010). Based on a thorough, un- rivaled understanding of our customers’ needs and requirements, as well as how and why they use their vehicles, we design tires that deliver game-changing performance, endurance and safety. “With Camso, Michelin has become the world leader in off-the-road mobility solutions. Cooperation between our researchers is going to boost our innovation capacity in tracks and airless tires.” Thomas Boettcher, Director, OTR Tire Business Line In the original equipment market, Michelin equips everything on wheels, with forefront positions in every mar- ket, including cars, vans, trucks, farm equipment, earthmovers and handling equipment, two-wheel vehicles and air- craft. We use our tire and suspension system expertise to assist automakers. Wherever the automobile is heading – hybrid EVs powered by batteries, hydrogen fuel cells or a combination of both, self-driving cars – tires will play a major role in vehicle performance, particularly in terms of fuel efficiency and range. As the world leader in energy-efficient tires, Michelin has the technology to support these trends. By combining the MICHELIN 2CT and 2CT+ technologies with the latest generation rubber compounds and a siped tread pattern, the MICHELIN Road 5 tire offers superior wet grip without compromising performance on dry roads. Acorus, the patented new flexible wheel technology, delivers a more comfortable ride and absorbs pothole and curb impacts. Michelin is partnering with Camso, a technological leader in tracks and track systems for farm machinery, materials handling and construction equipment, and snowmobiles. In the replacement market, which represents around 75% of all tires sold worldwide, the Group markets a diverse range of products suitable for every use. We are strengthening our presence in the wholesale and retail segments through partnerships and franchises to secure and broaden our market access. We are fostering synergies between the online tire retailers and brick & mortar dealerships to offer end-customers a high-quality fitting and service experience. As the world’s leading premium tire brand for retail and corporate customers, the MICHELIN brand accounts for nearly 80% of consolidated sales volumes. With the start-up of a new plant in Mexico in 2018 and the commissioning of new capacity elsewhere in the world, our premium car tire production capacity has doubled over the past six years. The Group addresses other market segments with an aligned brand portfolio and tires that are competitively differentiated by quality. In 2018, three major acquisitions strengthened our positions in the specialty tire and dealership businesses. The acquisition of Canada-based Camso has made Michelin the world leader in the $13-billion market for off-the-road mobility solutions. The technology leader in rubber tracks and solid tires, Camso equips farm machinery, materials handling and construction equipment, and snowmobiles. It generates $974 million in revenue, with 7,700 employees and 17 plants. Camso also has a competitive production base in Vietnam and Sri Lanka, and a track record of robust growth and firm margins. Its product portfolio fits closely with Michelin’s and gives the new organization solid positions and excellent prospects in the materials handling, farm machinery and construction equipment markets. In North America, Michelin and Sumitomo Corp. combined their replacement tire distribution and related service operations into a 50/50 joint venture called NTW, which is now the second-largest tire wholesaler in the United States and Mexico. Customer benefits include better availability of tire products at all price points thanks to faster delivery to direct customers and a robust base to expand online sales with in-store fitting for both individuals and corporate fleets. In addition, two other partnerships were formed during the year. In Europe, Michelin acquired a 20% stake in the chain of 600 A.T.U auto service centers operated in Germany, Switzerland and Austria by the Mobivia Group. Secondly, the acquisition of UK-based Fenner and more specifically its Engineered Conveyor Solutions (ECS) division, one of the world’s largest suppliers of heavy conveyor belts and conveyor belt solutions, has strengthened the Group’s leadership in the mining market. Michelin now offers mining customers a comprehensive range of tires, conveyor belts and services. 1. Compared with 2015. 2. Compared with 2010. 2,520 sales outlets in North America 2,200 Euromaster centers in Europe 1,965 Tyreplus centers in the new markets SUSTAINABLE MOBILITY DRIVEN BY PERFORMANCE MADE TO LAST Not all new tires are created equal, and worn tires even less so. In fact, some tires that have worn down to the legal minimum tread depth (1.6 mm in Europe) brake just as well as certain new tires. But how can we know which ones? Tests and labeling systems focus on new tires and many tiremakers and influencers encourage users to change them too soon. In the interest of our customers, as well as the environment, Michelin makes tires that deliver the same safe, superior performance from the first to the last kilometer. Using tires until they are worn down to the minimum legal tread depth would avoid the unnecessary replacement of 400 million tires a year, worldwide, the waste of the corresponding production materials and the emission of 35 million tonnes of CO2 (estimates based on European data). Plus, in Europe alone, motorists would save a massive €6.9 billion. Michelin is committed to planned longevity, because it supports mobility that is efficient, environmentally sensitive, affordable and safe. Michelin 2018 annual report Michelin’s latest digital applications are opening up new opportunities for fleet operators and trucking companies. Four areas of growth SERVICES & SOLUTIONS Digital technologies, geolocation and instant communication are all revolutionizing the transportation industry. As the leading source of connected tires, Michelin offers corporate customers all the benefits of its data analysis expertise to simplify their maintenance operations, improve their safety performance, reduce their operating costs and attenuate their environmental impact. Our goal is to double revenue from the sale of services and solutions by 20201. M ichelin services are designed to enable customers to get the most out of their tires, by increasing tread life and improving fuel efficiency. This commitment can be seen in the expanding deployment of service centers and authorized networks, such as ExelAgri for farmers, mobile tire-fitting vans and on-site maintenance services. Maintaining the right pressure improves tire safety, lengthens tread-life, saves fuel and lowers CO2 emissions. Retreading gives worn truck, agricultural, earthmover and aircraft tires a new lease on life, without compromising safety. A MICHELIN truck tire can be retreaded twice, thereby tripling its useful life. In fact, with just one retreading, the extended tread life of a MICHELIN tire can save 70% of the natural resources that would be used to make a new Tier 3 tire. Fleet operators conduct their business in an increasingly restrictive environment, juggling demands such as on-time delivery, the safety and security of people and goods, compliance with environmental standards, managing maintenance and replacement purchases and continuously improving efficiency and competitiveness. The digital revolution is opening up opportunities for new gains. Thanks to connected tires, on-board information systems, digital applications, telematics and data analytics, we can identify the causes of fuel inefficiencies or downtime and recommend solutions, from predictive maintenance to eco-driving courses and route optimization. Today, the Group is actively pursuing this path to the future with MICHELIN Services and Solutions, Sascar in Brazil, Mexico and Argentina, and NexTraq in the United States. Michelin 2018 annual report In 2018, we acquired Truckfly, a free application designed to make life easier for truck drivers. Truckfly offers truckers one of Europe’s largest databases of roadside restaurants, rest areas, service stations, truck parks and other points of interest (POIs). The database is constantly updated by a community of 120,000 users. “We want to improve truckers’ lives on the road, and the free Truckfly application helps us to do that. We’re going to enhance its features to make it even better for the user community.” Xavier Gosselin, Service Designer Services & Solutions Europe Our most recent digital solutions have garnered a number of awards. At the Transport & Logistics Innovation Week (SITL) trade show in Paris, MyBestRoute won the 2018 Technologies and Information Systems Innovation Award. The application enables truckers to select the best route, in line with the preferences of their fleet ma- nagers and based on their truck’s configuration and load. Three digital applications earned a 2018 Innovation Award from France’s Road Safety Association: MyInspection, which standardizes vehicle inspections, MyTraining, which facilitates driver training, and MyRoadChallenge, a serious game that celebrates truckers’ skills by rewarding them for their good driving practices. Other digital solutions aimed at consumers are increasingly popular with motorists, including MICHELIN Track Connect, the first connected coaching application for sports car enthusiasts, and Driving Data to Intelligence (DDI), a 100% connected start-up imagined by Michelin to act as a powerful “digital seatbelt” that encourages motorists to demonstrate safer, more environmentally friendly driving behavior. Connected sustainable mobility, which requires the capture and analysis of mobility data, is one of tomorrow’s major challenges and Michelin is assertively developing new services and solutions to meet it. 1. Compared with 2015. 425 Services & Solutions experts supporting our customers 853,000 vehicles covered by a Michelin contract worldwide 120,000 drivers using Truckfly MORE THAN 50 service solutions worldwide SUSTAINABLE MOBILITY THROUGH THE CIRCULAR ECONOMY For years now, Michelin has been offering trucking, airline and mining companies solutions whereby we sell the use of our tires rather than their ownership, i.e., we supply the tires, oversee their management and invoice the customer based on distance covered, landings made or weight carried. The Group handles every aspect of this process, from tire selection and fitting to maintenance, support, retreading and end-of-life recycling. Onboard tire pressure and temperature monitoring systems help to optimize preventive maintenance, avoid accidents and reduce downtime. Properly maintained tires last longer and are more fuel efficient, which is good for our customers and the environment. Michelin is committed to the functional economy, because it supports mobility that is safe, efficient, affordable and clean. Michelin 2018 annual report When rating a restaurant, Michelin inspectors review the total dining experience, because it contributes to the customer’s overall impression. Four areas of growth MOBILITY EXPERIENCES Today’s connected, on-demand, shared-use mobility offers a myriad of opportunities for new experiences. Michelin is capitalizing on its expertise in maps and guides to broaden their scope and leverage their value in digital services. Its goal is to become the go-to independent selection of fine dining venues and travel services, while tripling revenue from these businesses by 20201. W e are helping people to prepare and enjoy their travel experience with maps, travel and fine dining guides, traveler information websites, online booking platforms and a suite of free applications available in 13 European countries. The applications offer a choice of itineraries (shortest, fastest, least expensive, most interesting), voice guided GPS navigation, and weather, traffic, service station and car park information. They also display speed warnings and hazard reports, updated in real-time by the ViaMichelin user community. They include tourist site information from the Green Guides and the MICHELIN Guide’s selection of restaurants and hotels. As the world leader in fine dining guides, the European leader in online restaurant booking and a major publisher of travel guides, Michelin offers high-quality selections based on applied criteria to guide customers in making the right choice. Gourmet dining opportunities are an increasingly important factor in both business and leisure travel. The MICHELIN Guide, which covers 30 countries from China to Brazil, also helps to promote travel to cities and countries around the world. To advise foodies and enable them to enjoy an ever-expanding array of constantly enhanced experiences, we are broadening our scope of business by taking equity stakes in such partners as Le Fooding, a website and guide publisher specialized in hot new restaurants, trendy bars and take-away spots, and in Robert Parker Wine Advocate, the world’s most widely read wine tasting and rating guide. Michelin 2018 annual report “Tablet is part of this new lifestyle that fully corresponds to the ethos of the MICHELIN Guides. We want to offer our readers the best, by revealing places that offer this extra touch of soul.” Pascal Couasnon, Director, Mobility Experiences and Michelin Motorsport In 2018, Tablet joined the Michelin Group. Dedicated to travelers looking for an unforgettable, one-of-a kind hotel experience, Tablet is a selection and booking platform that currently offers 3,500 hotels that stand out for their quality and uniqueness. Like the MICHELIN Guides, Tablet curates its selection based on the actual guest experience they deliver and on rigorously collected information. In addition, the Tablet Plus Club offers its members exclusive benefits, such as an upgrade to a superior room category. Today, half of Tablet’s customers are in North America. The alliance will help it to conquer a wider audience, while enabling Michelin to enhance its travel portfolio, thereby benefiting both its customers and the MICHELIN brand.  1. Compared with 2015. THE EUROPEAN LEADER in online reservation booking 3,065 starred restaurants are recommended by the MICHELIN Guide in 30 countries 22,000 starred locations in more than 100 Michelin Travel destinations SUSTAINABLE MOBILITY – ACTIVELY ENGAGED IN ROAD SAFETY In addition to the safety impact of its tires, services and solutions, Michelin works to improve road safety directly, through its employees and its Corporate Foundation. As an active member of the Global Road Safety Partnership, the Youth for Road Safety association, the United Nations’ Decade of Action for Road Safety and the International Automobile Federation’s FIA Action for Road Safety campaign, we focus primarily on awareness and educational initiatives for young people. Examples include the Road Safety Academy in China, Beyond the Driving Test in the United States, the Michelin Best Driver contest for students in Brazil, the Safe Mobility program for schoolchildren in Southeast Asia, and Youth Road Safety Ambassadors in South Africa. In 2018, Michelin and Total launched a joint road safety education program that aims to reach 100,000 young people over a three-year period. Michelin is committed to innovating, engaging and taking action to make mobility safer. Tablet, an online hotel booking platform, offers travelers unforgettable, one-of-a kind experiences in a selection of 3,500 hotels around the world. Michelin 2018 annual report Four areas of growth HIGH-TECH MATERIALS Michelin has built up extraordinary expertise in the design and production of high-tech materials, such as elastomers, engineered fabrics, biomaterials, resins and metal 3D printing. Already a core factor in the performance of the Group’s tires, this expertise will be enhanced with targeted acquisitions and actively marketed to other industries. O ne example is the metal additive manufacturing technology used by Michelin to make the molds for its high- performance tires. Created with Fives, a leader in high value- added production lines, AddUp is leveraging this expertise to serve the aerospace, automotive, energy and medical equipment markets, while actively participating in the organization of the new industry. In 2018, AddUp acquired two companies, Poly-Shape and BeAM, that offered a strong fit with its existing business. Another example is hydrogen-powered electric mobility systems. Hydrogen fuel cells offer an alternative to battery-electric powertrains as a way to lower CO2 and other harmful emissions generated by the transportation industry. They are also compatible with the wide variety of ways in which EVs are used. As part of its commitment to zero emission mobility, Michelin has developed hydrogen fuel cells capable of outputting 5kW to 100kW that can serve as a primary or supplementary power source for all types of electric powertrains in vans, trucks, trains and ships. The cells generate electricity inside the vehicle from the chemical reaction between hydrogen (supplied from an onboard tank) and oxygen (from the air), releasing only water as a byproduct. Wholly-owned subsidiary Symbio, a pioneer in hydrogen fuel-cell systems, is a core stakeholder in the Group’s memorandum of understanding signed with Faurecia in March 2019, which aims to create the leader in hydrogen mobility systems. With Fenner’s AEP division, Michelin has strengthened its expertise in high-tech materials in new markets, such as industrial and medical equipment. Michelin 2018 annual report In 2018, two major investments strengthened our positions in high-tech materials. “Innovation in high- tech materials will be key to creating value in the coming years. Fenner will enable the Group to accelerate its growth in this market.” Sonia Artinian-Fredou, Executive Vice-President, Services & Solutions and High- Tech Materials Business Lines We brought a synthetic rubber pro- duction facility on-stream in Java, investment of representing $435  million committed as part of a 55/45 partnership with Petrokimia Butadiene Indonesia. Two similar Michelin facilities are already up and running in France and the United States. The new capacity will enable us to meet strong demand for en- ergy-efficient tires in Asia, as well as to serve other industries. an 20 MILLION equivalent passenger car tires have not been landfilled over the past ten years, thanks to Lehigh Technologies 2 MILLION cars AND 350,000 TRUCKS the estimated number of fuel-cell vehicles on the road by 2030 (according to a McKinsey study) With the acquisition of Fenner, and particularly its Advanced Engineering Products (AEP), division, we have brought in one of the world’s leading producers of reinforced polymers for high value-added niche applications, ranging from medical implants to belts, seals and hoses for highly demanding industrial needs. With Fenner’s AEP division, Michelin has strengthened its expertise in high-tech materials and its ability to market these capabilities in new markets, such as industrial and medical equipment. SUSTAINABLE MOBILITY THROUGH THE CIRCULAR ECONOMY Michelin is firmly engaged in the circular economy through its 4R strategy to Reduce, Reuse, Recycle and Renew. The focus is doing more with less. Reduce the amount of resources needed to make a tire by practicing eco-design and engineering tires that are lighter, more energy efficient and longer lasting. Reuse tires by repairing, regrooving or retreading them. Recycle scrap tires and recover their resources with appropriate technologies (Lehigh). Renew by using biobased materials. Industrial partnerships have been formed to produce these materials, such as the bio- butadiene made by the IFPEN/Axens venture. Michelin also supports the responsible production of natural rubber, in particular through a major project in Indonesia with Barito Pacific Group and the support of the WWF, promoting best practices across the industry. Michelin is committed to the circular economy, because it supports mobility that is efficient, safe, affordable and clean. Michelin 2018 annual report Most of Michelin’s key technologies have been derived from innovations in materials. www.michelin.com Turn over the map to learn about Michelin’s four areas of growth. Michelin’s areas of grow th 4 7 2 A2 5 4 3 5 N 5 8 3 10 N 5 11 7 MICHELIN GUIDE 7 15 12 32 A2 5 4 3 4 11 6 N 5 7 N 9 7 N 1 7 A 1 10 9 9 A2 3 15 16 7 6 N 1 N 2 5 8 6 N 1 21 A2 18 42 2 N 1 0 D 2 13 11 A 2 10 20 1 A 10 15 Mount Michelin Star 11 N 2 22 0 D 2 MOBILITY EXPERIENCES MOBILITY EXPERIENCES 7 5 5 A2 6 7 8 N 3 6 6 6 7 N 1 6 9 29 AUTOMOTIVE ACCESSORIES 10 A6 2 N 3 16 22 N 6 12 3 30 16 A6 N 3 20 30 172 11 12 32 11 44 171 10 6 11 1 8 16 5 5 158 2 TIRES FOR PRIVATE USE 8 9 8 7 163 157 10 5 8 16 9 161 6 5 4 2 5 7 6 12 21 11 180 9 163 d a y R o a S t e f 38 9 9 85 14 9 D U R 5 157 A B I L 14 85 I T Y 4 27 6 5 7 6 156 8 155 R A 3 N 10 G E 155 11 5 8 6 27 7 4 153 5 38 17 154 10 13 Robustness Pass 153 9 8 4 6 160 12 169 5 6 8 0 4 6 0 3 7 5 45 6 17 5 3 15 153 8 2 N 1 8 10 8 N 9 SELECTED RESTAURANTS AND TABLE BOOKING SERVICE 2 7 3 A2 7 N 4 5 A N 1 9 42 Regional Vitality Beach S U S T A I N A B L E M O B I L I T Y O C E A N 6 N 3 7 2 4 6 8 N 6 4 6 5 20 26 7 6 5 5 167 N 6 6 2 12 6 6 3 20 4 16 11 160 8 MAPS AND GUIDES 7 6 4 7 N 2 5 4 5 5 N 1 A 6 4 5 7 3 6 N 1 37 18 BRAND LICENSING 19 16 15 20 1 D 4 10 4 4 11 N 2 30 3 7 A 6 3 3 3 1 3 4 5 5 3 4 11 5 5 6 14 12 8 14 66 9 16 6 66 17 14 159 12 165 10 8 4 3 4 4 8 6 10 D 2 5 2 3 N 9 12 21 Trusted Third Party Highway (for de m anding travelers) 15 11 A5 N 4 3 2 3 7 N 1 10 8 N 4 N 1 13 N 9 11 23 2 4 2 5 12 8 4 5 A 2 N 1 7 D 1 7 10 7 SELECTED WINES N 8 16 46 12 D 25 7 D 1 17 5 3 D 2 N 8 3 2 4 4 6 A 2 N 1 15 N 8 6 7 Cape of Unique Experiences 8 A 5 8 9 ROUTE PLANNER AND TRAVEL APP 7 4 8 6 N 8 1 7 3 D 2 2 1 5 2 1 SELECTED HOTELS AND ROOM BOOKING SERVICE D 23 N 8 11 11 4 N 4 3 11 32 4 2 N 8 35 8 14 A 6 12 9 2 N 4 2 2 4 9 11 D 31 9 9 N 11 6 9 1 N 1 9 5 A 8 13 20 3 6 9 5 10 5 145 85 3 19 480 144 11 7 5 4 10 10 6 7 10 N 7 A 8 13 12 N 7 Travel 20 11 6 A 7 10 9 143 13 WHEEL-TIRE ASSEMBLY 143 142 111 9 4 10 5 7 6 111 141 6 7 6 131 R i v e r 6 6 5 8 20 4 3 5 5 4 7 38 3 131 8 5 131 4 8 7 111 5 4 7 143 7 132 6 8 12 4 TIRES FOR PROFESSIONAL USE 3 3 5 2 8 8 4 11 8 3 14 165 10 85 165 8 155 17 13 12 145 151 8 AIRLESS TIRES 6 8 32 7 11 4 5 66 3 11 3 6 5 85 5 145 9 155 32 145 12 12 11 14 4 14 32 14 3 2 4 4 143 13 144 2 10 8 1 6 6 4 5 7 4 1 11 7 3 7 9 27 TIRES TIRES 32 14 4 3 119 2 6 10 6 7 117 5 9 6 119 7 32 8 117 5 5 4 D 6 5 D 65 15 5 7 6 N 1 6 6 Retreading Bridge 140 12 2 135 11 136 28 L a s 12 t i n g 6 13 2 P e r f o r 20 m 137 a n 7 c e H i g 139 7 5 138 h w a y 2 302 17 152 13 6 155 4 2 5 115 4 4 3 17 12 12 14 1 DISTRIBUTION NETWORKS 4 2 12 12 6 4 11 7 115 11 113 7 3 14 3 7 Eco-Design Forest 11 14 11 6 11 114 45 115 2 6 112 28 3 4 105 11 82 45 9 105 6 1 3 4 Radial Source 10 4 5 4 2 3 8 117 32 16 7 118 6 7 10 5 12 7 119 6 6 8 132 4 14 30 136 9 Energy Savings Highlands 9 8 3 5 4 4 11 6 133 4 7 3 10 9 14 20 8 117 17 7 112 8 7 6 8 117 8 112 6 5 39 32 6 3 8 3 5 MOTORSPORT 10 7 5 7 3 6 6 6 4 6 6 7 112 7 5 8 111 6 9 109 19 8 11 7 3 5 10 7 17 4 4 2 3 19 2 3 106 13 8 4 4 2 4 E-COMMERCE 11 9 4 s e R 1.5 206 3 11 25 3 1.5 8 12 12 7 3D 27 2 109 8 5 110 8 207 14 208 2A 6 7 210 5 4 43 4 15 12 7 9 8 4C 5 3 p p li e r s R i v e r 4B 11 A 4 29 205 5 4 217 7 6 211 6 211 7 4 9 32 4B 215 205 4 13 1 4 4C 4 2 2 A 4 217 4 7 204 u p o n s i b l e S 7 5 3D 9 214 3D 201 4 8 10 2 201 3 220 Fe 212 9 5 7 9 3 9 211 7 213 210 5 4 211 5 A 3 201 Fe 12 205 11 4B 216 11 4C A 4 1 4 7 6 A0 11 205 6 212 6 202 10 8 RECYCLING 5 3 2 219 10 7 5 202 200 126 200 A 3 13 11 D 3 6 11 7 N N 1 0 14 N 7 17 e-Commerce Bridge C U L I N A R Y H E R I T A G E B A Y Service Center Pond 4 2 N 1 3 D 7 5 8 7 D 8 7 12 8 N 1 8 37 2 N 1 9 8 D 67 4 5 7 D 8 8 D 8 6 9 D 6 7 4 4 3 D 8 8 9 9 N 1 3 7 11 4 6 N 12 5 D 74 8 4 8 5 N 1 8 7 D 7 4 7 5 7 D 7 5 N 1 3 6 2 4 4 29 6 5 D 75 4 2 SELECTED TOURIST ATTRACTIONS AND TOUR BOOKING SERVICE N 7 9 1.5 D 61 B t o B N 14 12 20 3 6 A 9 5 2 0 D 6 14 5 4 N 1 12 A9 12 7 D 8 4 6 D 6 3 5 4 N 10 1.5 D 6 0 18 25 D 6 2 11 N 2 0 7 4 4 R i v e 4 r N 17 3 3 13 3 5 6 4 6 D 62 D 8 4 3 4 D 8 5 N 1 7 9 6 D 70 3 0 N 2 5 6 4 5 5 4 17 6 10 2 N 1 6 D 67 D 2 8 N 13 7 35 8 10 5 CONNECTED MOBILITY 6 6 8 D 8 7 D 6 8 11 D 6 6 15 N 1 4 6 D 8 6 42 8 D 6 9 Mount Big Data 4 D 6 8 5 12 8 N 1 16 12 13 6 4 N 1 7 6 0 D 8 12 4 D 7 15 5 D 7 4 11 N 1 8 13 7 N 1 9 5 12 6 D 8 1 5 D 8 9 6 14 9 D 8 N 1 3 18 30 11 D 75 3 N 46 15 3 DIGITAL SERVICES PLATFORM 3 3 3 5 N 1 2 2 20 10 N 1 5 3 3 5 D 75 9 D 8 10 D 8 9 8 6 7 D 7 8 N 14 12 27 D 78 15 D 7 7 19 D 8 9 D 7 7 6 D 75 9 D 7 9 3 D 80 4 D 7 9 N 15 5 12 5 SERVICES & SOLUTIONS SERVICES & SOLUTIONS 7 5 5 4 4 5 6 D 66 8 3 D 6 3 6 5 N 17 3 3 D 66 4 7 D 7 1 7 9 46 6 13 D 6 4 D 83 14 7 N 1 6 N 1 7 7 N 1 6 8 TIRE AS A SERVICE 13 D 6 3 6 5 7 D 70 3 9 8 8 N 1 D 82 11 3 D 74 D 8 6 8 8 N 1 16 D 7 0 13 D 7 2 14 N 15 1 D 7 3 3 3 9 N 1 6 4 N 1 7 5 5 N 1 5 12 D 74 11 3 7 14 D 7 2 12 7 12 N 15 N 1 9 9 7 11 8 D 74 67 N 15 16 D 9 6 3 4 D 7 6 6 N 1 9 4 13 3 D 7 FLEET MANAGEMENT 7 11 10 R E N E W A B L E Fuel Savings Viaduct R E S O U R C E S S E A 27 401 8 8A 402 10 14 5 A 404 7 4 405 HYDROGEN ENGINE 2 9 2 6 410 9 422 403 7 A 5 4 406 8 409 9 9A 8 9 408 A 0 19 401 16 9 7 3 3 4 404 2 6 5 8A 3 8 6 7 421 420 8 4 422 3 4 5 7 4 420 6 10 4 417 11 417 7 416 10 22 e r u Inlet Joint Vent 38 5 915 3 9D 8 9 913 5 6 912 911 14 13 D 75 8 N 1 3 12 6 D 7 4 D 7 6 N 13 11 11 13 N 1 4 7 Cape of CO₂ Reductions New Standards Lighthouse 7 12 914 12 9C BIOSOURCED MATERIALS 2018 ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT For more information, please visit Michelin.com or take a look at our 2018 Registration Document. We hope you enjoy our brochure. Have a pleasant journey! Design and production:  Editorial advice and copywriting: Michelin, Information et Conseil. Photos: ©Michelin, ©Michelin/Ludovic Combe, ©DR/Camso, ©DR/Fenner, ©DR/Lehigh, ©DR/Michelin, ©Michelin/Michael Eschylle, ©Michelin/Jimmy Hamelin, ©istock, ©Pexels/Lina Kivaka, ©Pressmaster/123 RF, ©rhein-foto.de, ©Michelin/Philippe Stroppa, X. 

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