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Compagnie Generale des Etablissements Michelin

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FY2018 Annual Report · Compagnie Generale des Etablissements Michelin
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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

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A2

3

15

16
7

6

N   1

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 2

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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!

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