MICHELIN

A better way
forward

Source: Annual and sustainable development report

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page : 1
 KEY FIGURES
Michelin sites Environmental
Footprint reduced by Employees Net sales

-33% 115,000 €20.7bn

In volume In value
New hires

6.7% 15.8%
14,036 Up Up

Hours of employee training Operating income

7.2 million €1.945bn Before non recurring items

Net debt-to-equity
Lost-time incidents ratio

0 In 26
plants
Group
22%
Capital expenditure

€1.7bn

Source: Annual and sustainable development report

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page : 2
 EVERYWHERE AROUND THE WORLD,
WE EQUIP EVERYTHING ON WHEELS, TO SERVE EVERY MOBILITY NEED

184m
TIRES PRODUCED
170
MARKETING OPERATIONS IN
14.8%
SHARE OF THE GLOBAL
69 PRODUCTION FACILITIES MORE THAN 170 COUNTRIES TIRE MARKET BY VALUE
Tire Business 2011 Global Tire Company Rankings
IN 18 COUNTRIES

No.1
IN THE WORLD IN
No.1
IN THE WORLD IN RADIAL TIRES
No.1
IN EUROPE IN TIRES FOR
HIGHPERFORMANCE FOR TRUCKS, EARTHMOVERS, FARM MACHINERY,
TIRES FOR CARS AIRCRAFTS MOTORCYCLES

Source: Annual and sustainable development report

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page : 3
 ACTING LOCALLY,
WE FACILITATE MOBILITY FOR EVERYONE, EVERYWHERE
AND IN EVERY WAY

3.300
PRODUCT AND SERVICE
10m
MAPS AND GUIDES IN
DEALERSHIPS 15 LANGUAGES PUBLISHED
IN 27 COUNTRIES IN 2011

No.1
IN RETREADING
950m
ITINERARIES CALCULATED
BY VIAMICHELIN

No.1
IN SERVICE CONTRACTS
FOR TRUCKS, EARTHMOVERS
AND AIRCRAFT FLEETS

Source: Annual and sustainable development report

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page : 4
 MICHELIN ESTABLISHED 115 000 69
CLOSE TO ITS CUSTOMERS employees (108 300 Full-time production facilities
equivalent employees) in 18 countries

Western Europe Eastern Europe

32 plants 8 plants
10 for passenger car and light truck 5 for passenger car and light
tires truck tires
12 for truck tires 3 for truck tires
7 for specialty tires 3 for specialty tires
6 for components and 1 for components and semi-
semi-finished products finished products

Asia (without India)

7 plants
4 for passenger car
North America and light truck tires plus 1
17 plants under construction
10 for passenger car 3 for truck tires plus
and light truck tires 1 under construction
4 for truck tires 2 for specialty tires
3 for specialty tires 2 for components
2 for components and semi- and semi-finished products
finished products

South America
4 plants
2 for passenger car
and light truck tires plus 1
under construction
3 for truck tires
1 for specialty tires Africa, India
and the Middle East
1 plant
1 for truck tires plus
1 under construction
• TC : Tourisme camionnette • PL : Poids lourd • SP : Pneus de spécialités

Source: Annual and sustainable development report

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page : 5
 MICHELIN IT MISSION STATEMENT

Improve business and IS/IT processes

efficiency by delivering :
1. simplified, standardized, innovative and easy to
use solutions, in accelerated cycles
2. up to date, effective and collaborative work
environments for individuals and communities
at a competitive cost while ensuring
information security.

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page : 6
 THE MICHELIN TRANSFORMATION PROGRAM
SUPPORTED BY IT

ERP Backbone Program

Demand to Cash
Upstream Supply Chain
transformation program

Downstream Supply Chain and Logistics

transformation program
• Inventories Finance / Purchase to Pay / Costing
PLM program

Capgemini scope

Customer / D2C Finance /

Upstream
/ Downstream P2P

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page :
 THE PARTNERSHIP WITH Capgemini

• Delivery model :
– Front office in a co-management mode : USA, France
– Back Office : India

– Capgemini scope of work :

– Pre-design, high level design, project management office:
Capgemini Consulting
– Build / test / roll out / support : Capgemini Technology + India

 A distributed and industrialized delivery model able to ask for

expertise when needed

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page : 8
 THE PARTNERSHIP WITH Capgemini

• Key points :
– A global project requiring international teams
– Agility through “flying squad” when needed
– An original partnership through the “co-management” principle

– First results :
– A successful Go Live at the planned date in North America

– Next steps :
– Deployment in Poland and India
– Build of the next release (China, Western Europe) and
deployment
– Further deployments in Asia, South America

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page : 9
 Co-management : a real partnership spirit

• Alignment of all suppliers on MICHELIN objectives to

make them co-responsible for
– application development and deployment, support
– continuous improvement of processes, methodologies and tools
– 5% of their revenue as risk or reward through 10 KPIs (o/w
Michelin satisfaction : value created, resource adequacy with the
needs)

• “Transparency” with the partners to enable

anticipation: visibility on the project portfolio

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page :
 Co-management : the benefits

Before After
# development sites 15 5
# suppliers 80 5
Commitment on results 10% 30%-50%
Development process Diversified Unified
Suppliers’ relationships Client-supplier Co-management
Short term Long term
Flexibility Variable Structural
Cost > benchmark = benchmark

Reference number: REF_1197_DGCM - DGCM/CI - Creation date: mai 2012 - Classification : D4 - Retention: WA+1 – Page :
Thank you
for your attention!