Michelin launches the 12th Michelin Challenge Bibendum

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2 Michelin launches the 12th Michelin Challenge Bibendum For the 12th Michelin Challenge Bibendum, Michelin is bringing together for five days in Chengdu, China several thousand representatives from the political, industrial and scientific spheres to share and discuss ideas and put forward sustainable mobility solutions. This event provides a unique opportunity to define action priorities for the future together. No one company can single-handedly provide a comprehensive solution to the many challenges of future mobility. Issues such as climate change, traffic congestion, transport accessibility and safety require the coordinated efforts of all stakeholders. This approach is aligned with the philosophy of the Michelin Group, whose strategy focuses on collective initiative and innovation. Progress driven by innovation For more than 100 years, Michelin innovations have been revolutionizing all forms of mobility on all types of terrain with the goal of improving the quality of life for everyone. Around the world and for every purpose, the Michelin Group equips everything on wheels cars, vans, trucks, civil and military aircraft, farm machinery, mining equipment, lunar exploration modules, handling equipment, metros, tramways, motorcycles, scooters and bicycles. By providing an effective solution to differing requirements, Michelin holds forefront positions in all of these segments. Michelin innovations presented at the Michelin Challenge Bibendum included: The tire used in the Formula E championship - As the sole supplier for the FIA Formula E championship, Michelin designed a tire adapted to the special requirements of this spectacular competition, which takes place entirely in cities around the world and thus in all weather conditions. This revolutionary 18-inch tire is also perfectly suited for cars. With this tire, Michelin has made motorsports an experimental laboratory for road tires. Agricultural tires with Ultraflex technology meet the needs of farmers and farm equipment manufacturers. Michelin tires made with this technology benefit from a unique rubber compound and architecture that make it possible to carry heavy loads and operate at very low pressure. This architecture meets a threefold objective: protecting soil, increasing load capacity and reducing fuel consumption. As a result, yields are considerably improved. Selfseal technology integrates a unique rubber compound that immediately plugs any holes in the tread. These tires, which are set to be on the market from 2015, will help to improve safety for drivers and passengers, especially in emerging markets, where roads are not as safe as in Europe. 2

3 Developing services for new mobility uses. Backed by a firm belief that the emergence of new services today plays a key role in the development of mobility, Michelin is presenting personalized, high-performance solutions that enable its customers to improve safety, energy efficiency and output. With Michelin solutions, launched in 2013, Michelin provides professional truck fleet operators with its extensive expertise to help them reduce their costs and environmental impact for every expense item and at every stage in their operations. At the 12th Michelin Challenge Bibendum, Michelin is presenting innovations that help to bring about a real improvement in the well-being of users and, moreover, of society as a whole. 3

4 Innovation in tires Michelin, the exclusive partner of the first Formula E Championship Michelin, partnering the FIA s Formula E Championship Since September 2014, Michelin has been the official tire supplier of the Formula E Championship, a unique all-electric single-seater competition organized by the FIA. Races are hosted across three continents on fully urban circuits in 10 cities, including Beijing, Buenos Aires and Rome, bringing the event as close to the public as possible. This partnership has led to the creation of a brand new tire, the Michelin Pilot Sport EV, which is being used on all the cars in the competition. The Michelin Pilot Sport EV, an innovative solution Electric, urban, sustainable and technologically innovative, the MICHELIN Pilot Sport EV is a unique tire that is revolutionizing the design and styling of single-seater racing cars. With an interior diameter of 18 inches, its features remain the same in all conditions, whether dry or rainy. The tire meets four criteria: Safety on dry and wet roads. Maximum energy efficiency. Longer mileage that allows both the trials and the race to be completed on the same set of tires over the entire weekend. Like on roads, tire changes are no longer par for the course. The use of an 18-inch rim, similar to that used on road cars. These criteria will make it possible to deploy innovative racing tire technology more quickly on road tires. Motorsports, a testing ground for the innovations of tomorrow While Michelin has a long history of performance combined with technological invention, the Formula E challenge is particularly interesting because of the competition's city-center backdrop. For Michelin, it represents a technical challenge that is perfect for testing and validating technological advances. Progress made as part of this competition will be used to work toward safer, more efficient and more sustainable mobility solutions for everyone. 4

5 Selfseal technology: Michelin s first self-sealing tire A practical solution to user needs The MICHELIN Selfseal tire is made with a unique rubber compound that immediately plugs puncture holes in the tread. What driver hasn t worried about getting a puncture and having to change a tire in difficult or dangerous circumstances? These new tires will offer drivers peace of mind beyond compare. Designed for passenger cars and delivery vehicles, they can drive over nails without deflating, making flats and breakdowns a thing of the past. Delivering more performance in tires A Michelin solution that does not detract from other areas of tire performance, the selfhealing tire continues to deliver all of the qualities that are Michelin s trademark, such as safety, total mileage and fuel efficiency. From an environmental standpoint, there are two advantages. First, the need for replacement tires is diminished, meaning fewer tires need to be manufactured to cover a given distance. Second, the elimination of the spare tire means a roomier interior and a significant reduction in total vehicle weight (the jack and the tire storage area are no longer required). As a result, the car is nearly 30 kilograms lighter, which corresponds to a volume gain of 80 liters and additional fuel savings. This innovation is a perfect illustration of the MICHELIN Total Performance strategy. A real opportunity for emerging markets On average, tires puncture once every 75,000 kilometers in European countries but once every 3,000 kilometers on roads in certain Southeast Asian countries. Given the tremendous growth in the number of cars on the road in China, the relevance of such an innovation is immediately clear. Soon able to equip cars without requiring carmakers to make any changes, these Michelin tires will be brought to market in

6 Michelin is setting new standards in automotive safety with its MICHELIN PREMIER A/S tire Michelin Premier A/S improves driver safety Wet grip is a particularly important factor in road safety: for a given distance, accident risk is twice as high in wet conditions than dry conditions. Until now, tire traction diminished excessively on wet surfaces as the tread became worn over time. Groove depth decreased, thereby reducing the tire s capacity to evacuate water and increasing braking distances and the risk of aquaplaning. Unlike conventional tires, MICHELIN Premier A/S tires have unique features that allow them to deliver excellent grip on wet surfaces, even when worn. MICHELIN Premier A/S with EverGrip technology combines three essential factors: A rubber compound that delivers high grip on wet roads. Expanding rain grooves: on most tires, the shallower the rain grooves become, the less water is evacuated. The MICHELIN Premier A/S has rain evacuation grooves covering its entire circumference. Because the rain grooves special shape widens as the tire is used, more water can be evacuated compared with conventional tires when the grooves become shallower. Self-regenerating grooves: the MICHELIN Premier A/S has an extra layer of grooves. Placed along the tire s shoulder, the grooves appear as the tire wears down. In this way, more than 150 additional grooves help evacuate water and ensure excellent grip throughout the tire's life. Exceptional performance on wet roads These three factors work together to give the Michelin Premier A/S tire excellent grip in a wide variety of situations, over many years. For users, this translates into reduced stopping distances, enhanced aquaplaning resistance and improved grip whether the tire is new or worn. The Michelin Premier A/S with EverGrip technology has been on the market in North America since

7 Michelin Near Zero Growth (NZG) technology: practical and innovative solutions to challenges in modern aviation A single tire structure, for greater safety Thanks to NZG technology, Michelin can offer practical and innovative solutions to challenges in modern aviation: Ensuring optimum reliability for tires in extreme conditions. Improving total mileage. Significantly reducing fuel consumption. Aircraft tires have to be built to bear a weight equivalent to that of a truck while travelling at the speed of a racing car. At very high speeds, tires are subjected to significant stresses, which can stretch them. By combining radial technology with an inelastic belt using unique composite textile cables made of nylon and aramid fibers, tire stretching is reduced to below 3% for NZG tires (compared with 8% for radial nylon tires and 12% for conventional cross-ply tires). More resistant than conventional models, Michelin tires can withstand twice as many landings while at the same time reducing the number of maintenance operations required. As a result, they are much safer and more cost-effective. Lighter tires for real fuel savings 11 kg lighter than a cross-ply tire and 2-3 kg lighter than a conventional radial tire, the MICHELIN NZG tire also helps lower the weight of the aircraft, thereby reducing fuel consumption. Every year, airlines could avoid emitting 160,000 tonnes of CO 2 and save $36 million of fuel if all their planes were fitted with Michelin NZG tires. These tires also require 22% less raw material than standard tires. Already mythical status Guaranteeing optimal safety, the Michelin radial tire with NZG technology helped to get the Concorde back in the air and is now used on planes such as the Airbus A380, the Airbus A320 Neo, the Boeing 737 Max 7 &8 and the Dassault Falcon 8X. 7

8 Michelin UltraFlex technology: a response to the needs of farmers and farm equipment manufacturers A more flexible, resistant tire that is gentler on the soil Michelin tires with UltraFlex technology have a unique composition and structure enabling them to both carry heavy loads and work at particularly low pressure. This structure meets a threefold objective: protecting soil, increasing loads, and reducing fuel consumption. Better yields per hectare with more productivity and less fuel This unique flexing capacity increases the tire s footprint and more evenly distributes the load of farm machinery over the ground, thereby reducing the depth of the ruts left in the fields. It protects the soil from compaction and rut depth, which damage yields. By way of comparison, a rabbit exerts more pressure per square centimeter of soil than a MICHELIN AxioBib tire inflated to low pressure. Increasing the tire s footprint and reinforcing the shoulders improves grip and reduces slippage. Farmers can work faster and use up to 10% less fuel. Compared with conventional tires, Michelin tires with UltraFlex technology can withstand loads that are up to 40% heavier. These results are demonstrated annually through close to 50 field tests, carried out for example in Brazil, Russia and China. The largest tractor tire in the world with UltraFlex technology Michelin has developed the MICHELIN AxioBib IF900/65R46, the biggest tractor tire in the world, which measures 900 millimeters wide with a diameter of 2.32 meters. With this tire, Michelin takes the features of the UltraFlex range even further, enabling the largest farm machinery to get the best power, soil protection, and fuel efficiency. Thanks to Michelin UltraFlex technology, Michelin tires remain the most cost-efficient, versatile and soil-friendly solution. 8

9 Innovation in materials Michelin and the circular economy With more than two billion vehicles on the road by 2050, mobility needs to be safer, cleaner, more efficient and more comfortable Demand for mobility is constantly growing around the world, particularly due to rising living standards in emerging markets and the increase in international trade. According to OECD forecasts, nearly 2 billion vehicles could be on the roads by As a partner to carmakers and drivers, Michelin s mission is to support this process, while facilitating safer, more sustainable and more responsible mobility. Michelin s 4R strategy for a circular economy The tire industry uses 32 million tonnes of materials every year, three-quarters of which are fossil-based. At the same time, road mobility will double maybe quadruple between 2010 and There are many related challenges: securing supplies, reducing the impact of mobility on health and biodiversity and limiting its effects on climate change. Throughout a tire s lifecycle, the impact on natural resources (energy, raw materials and water) must also be improved by adopting a comprehensive circular economy approach. Note that more than 90% of a tire s environmental impact occurs during its use. Michelin s idea is to simultaneously activate four levers, thereby providing a combination of solutions to ensure that resources are used more wisely. This is Michelin s 4R Strategy: Reduce, Reuse, Recycle, Renew. Reduce: the goal is to reduce the amount of resources used while obtaining the same result by getting the most out of each gram of material used and each KWh consumed. To do this, tires must be made lighter, longer lasting and more fuel-efficient. In addition, tire-related services must be sold that will make them even longer lasting and even more fuel efficient. This is the reasoning behind the Michelin solutions approach. Reuse: By repairing, regrooving and retreading tires, raw material savings can be achieved. Recycle: Even though end-of-life tires are recycled, they are not generally recycled for use in tires. This is why Michelin launched the Tire Recycling (TREC) project in 2014 to develop two processes for reusing end-of-life tires. The first, TREC Regeneration, aims to manufacture high-quality regenerated rubber from scrap tires and use it to manufacture new tires, while continuing to improve tire performance. 9

10 The second, TREC Alcohol, is designed to develop an ethanol production channel starting with used tires. Ethanol is a good chemical intermediate that can be used to synthesize a number of materials. At the same time, Michelin is involved in the BioButterfly project, which will develop a process for producing butadiene (currently petroleum based) directly from alcohol. The alcohol will be supplied through the TREC Alcohol production channel or directly from biomass sources. For each project, an industrial demonstrator will be used to illustrate the financial, social and environmental performance of the solutions concerned. Renew: renewable materials currently account for just 25% of the Group s supplies (mostly natural rubber and some plant-based oils and resins), and it s time to move to the next level. That s why Michelin has launched two major projects: BioButterfly (mentioned above) and a project to produce isoprene from biomass, working with two companies, Amyris in California and Braskem in Brazil. By simultaneously activating these four levers Reduce, Reuse, Recycle and Renew Michelin is preparing for the future so it will be able to provide sustainable solutions to the world s growing mobility needs. 10

11 Michelin innovation: more than just tires The contribution of Michelin Travel Partner tools to sustainable mobility A strategic vision focused on sustainable mobility The Michelin brothers, who founded the eponymous tire company in 1889, had a vision for the mobility of goods and people. André and Edouard Michelin set the corporate ambition of developing products and offering services that help enhance the mobility of goods and people, and Jean-Dominique Senard has now taken up this challenge. Michelin guides, tourism guides, maps and mobility assistance products developed by Michelin are fully aligned with this strategic vision. We equip everything on wheels cars, trucks, bicycles, planes, etc. with high performance, safe and energy-efficient tires, but no one travels without a purpose, desire or need. Complementary and integrated solutions for everyone According to Michelin Travel Partner, the sustainable mobility ecosystem takes shape before the trip begins. It includes the family that unfolds a 1/200,000 scale map to get familiar with an area before a holiday. It includes the trucker who uses the viamichelin application to prepare a journey and pinpoint at a glance the best places to take a break, fill up the tank and have a meal. It includes the businesswoman who carefully selects the right Michelin starred restaurant from the guide for an interview she has been preparing for several days. Mobility support tools have been developed by Michelin with a view to improving efficiency for customers. Its complementary maps, guides and digital solutions, which are updated by teams of experts and are available to everyone, meet day-to-day needs and open up new opportunities. Innovation for travellers Everyday, our teams innovate to develop this unique knowledge platform and open it up as widely as possible via modern devices. We have chosen three examples of work carried out by our developers. ViaMichelin is currently the only tool capable of combining journey advice, trip budget calculations (fuel costs, tolls, etc.), road traffic updates in real time, and the content of two collections of world-renowned guides, Michelin Guides and Green Guides. Our digital mobility support ecosystem has won over many carmakers, who have integrated Michelin Navigation into the onboard telematics system of a number of vehicles, such as the latest Peugeot 208 and Ford Focus cars. Michelin Restaurant, a multi-criteria search function accessible on computers, tablets and smartphones, enables users to find a suitable restaurant using reviews and recommendations from inspectors for restaurants selected in the Michelin guide. From this year, users can now make reservations directly through the application. 11

12 The most recent example of this 360-degree deployment of our skills regards tourism support. Michelin teams are the first to include QR codes in local, regional and national editions of the Green Guides to extend the traveller's experience. By scanning the QR codes in the guide, the user can access supplementary information prepared by the authors, including videos, interviews, enhanced cultural content and examples of routes with photos. The print version is now a comprehensive travel support tool, adapted to new uses from consumers who want expert and educational advice when they travel. Key figures: In France, in 2014, more than 2 out of every 3 maps sold were Michelin maps. Today, the 24 MICHELIN guides cover 24 countries on four continents. In 2014, ViaMichelin website: Has had 450 million visits Has calculated 800 million routes Has calculated 220 billion km of routes. In 2014, Michelin Restaurants website: Has had more than 30 million visits Has offered more than 20,000 bookable restaurants in France Has processed 40 million searches for restaurants Has collected 100,000 opinions of online Has 60,000 fans on the Facebook page. Key dates for Michelin mobility assistance: 1900 Launch of Michelin guide 1910 Launch of road maps 1917 First guide of the battlefields of the First World War 1927 Launch of Green Guides 2011 Michelin Restaurant available online 2013 Michelin is the first tourism guide publisher to integrate QR codes Michelin Navigation is chosen by Peugeot for its new Peugeot Michelin designs a giant map, which is the first of its kind, as part of the First World War commemorations. 12

13 MICHELIN solutions: a committed response to today s mobility challenges End-to-end expertise covering every mobility challenge Now more than ever, the mobility sector is operating in a difficult competitive and regulatory environment. Every company in the sector is faced with numerous challenges: Ensuring optimal security. Cutting costs. Delivering on time. Optimizing asset management. Finding efficiency drivers. Reducing fuel consumption. Respecting environmental constraints. Monitoring all indicators. A certain number of specialists offer one-off solutions to each of these challenges, without making any commitments. Only Michelin solutions provides a comprehensive approach to the issues at hand and, in addition, commits to efficiency targets. Michelin solutions has end-to-end expertise in a wide range of areas as varied as outsourced tire management, with its EFFITIRES solution, vehicle productivity with its 24/7/365 emergency breakdown solution, marketed in Europe under the MICHELIN EURO ASSIST brand, and fuel-savings, with its EFFIFUEL solution. For over 70 years, Michelin has been supporting fleets and providing services to over 500,000 vehicles. Michelin created Michelin solutions in June 2013 to tackle efficient mobility issues experienced by trucking companies. It is backed by a unique ecosystem of carefully selected partners, chosen for their expertise and technological edge in telematics, electronics, training and fleet management. The originality of these solutions is based on several key components For EFFITIRES, Michelin solutions is contractually bound to optimize tire use allowing trucking companies to focus on their core business while getting more out of their tires. Michelin solutions provides four main levers to help trucking companies improve tire fuel efficiency. Payment based on driving style and a tire budget linked to the nature of the fleet's activity. Frequent fleet inspections to ensure complete and cost-effective safety. A dedicated team of tire experts and day-to-day advice. Reports and management tools for complete control. 13

14 For EFFIFUEL, Michelin solutions is contractually bound to reduce fuel consumption. EFFIFUEL works on a no result, no fee basis. Convinced that a comprehensive strategy is the best approach to reducing costs, Michelin solutions focuses simultaneously on all avenues for improvement, going far beyond the scope of tires. The EFFIFUEL service provides real support to mobility companies over the long-term to help them reduce their fuel consumption and keep it low. EFFIFUEL from MICHELIN solutions, a commitment to reducing fuel consumption Fuel accounts for nearly 30% of fleet expenses in Western Europe and for up to 40% in Central Europe. It can be a mobility company s largest expense item in some countries. This is why EFFIFUEL represents the Michelin solutions pledge to trucking companies to help them reduce their fuel bill. Forging real partnerships with companies, Michelin solutions provides four main levers to help trucking companies reduce fuel consumption: Eco-driving training courses provided by experts and monitoring of drivers at-the-wheel behavior based on individual eco-scores. Michelin solutions Fuel Analysts, who are experts in gathering and studying data that influence fuel consumption. The installation of telematic display units that give truckers visibility and help them remotely analyze vehicle parameters and track fuel use. EFFITIRES, an optimized outsourced tire management solution, based on a price commitment per kilometer, for more cost-efficient consumption. A Michelin solutions Key Account Manager presents a quarterly fuel consumption report to the partner company s management. 14

15 Michelin key figures Company founded: 1889 Production facilities: 67 plants in 17 countries Number of employees: 111,200 worldwide Technology Center: More than 6,000 people work in Research and Development in Europe, North America, South America and Asia Annual R&D budget: Over 600 million Annual output: 171 million tires produced, over 13 million maps and guides sold in more than 170 countries, and 1.2 billion itineraries calculated by ViaMichelin 2013 net sales: 20.2 billion An extensive portfolio of brands covering all market segments: Michelin, BFGoodrich, Kleber, Uniroyal, Warrior, Kormoran, Riken, Taurus, Tigar, Pneu Laurent, Recamic, Michelin Remix. More than 3,500 proprietary and franchised outlets in 29 countries. Michelin Milestones For more than a century, MICHELIN has leveraged its expertise and innovation to enhance the mobility of motorists around the world : Founding of Michelin et Cie : Michelin files its first patents for removable and reparable tires : Michelin introduces Éclair, the first car to be fitted with pneumatic tires. 1898: Birth of Bibendum, the Michelin Man : First Michelin Guide published 1905 : Introduction of the semelle Michelin tread with hobnails to improve tire grip and durability : First 1/200,000 scale Michelin road map published : Michelin invents the removable steel wheel : First low-pressure car tire (2.5 bar) : Michelin creates its first Green Guide for tourists : Michelin files a patent for the integrated tube tire : Michelin introduces Metalic, the first truck tire with a steel casing : Michelin invents the radial tire. 1959: Michelin introduces the first radial tire for earthmovers : The Michelin radial tire wins the Formula 1 championship. 15

16 1981 : The MICHELIN Air X is the first radial aircraft tire : Michelin launches the first online travel itinerary service, on France s Minitel teletext network : Launch of the fuel-efficient MICHELIN ENERGY tire : Michelin invents the new C3M tire manufacturing process : The US space shuttle lands on MICHELIN tires. 1996: Michelin invents the vertically anchored PAX System tire : The first Michelin Challenge Bibendum, the leading international clean vehicle event : The Michelin Man s 100th birthday : Michelin Man voted best logo of all time by an international jury : Michelin brings to market the world s largest earthmover tire : Launch of MICHELIN brand automotive accessories : New corporate signature introduced: Michelin, a better way forward : Launch of the MICHELIN XeoBib, the first agricultural tire that operates at a constant low pressure : Michelin revolutionizes truck tires with MICHELIN Durable Technologies. 2007: Launch of the new MICHELIN ENERGY Saver tire, which reduces fuel consumption by nearly 0.2 liters per 100 kilometers, thereby lowering carbon emissions by almost 4 grams per kilom 2009: 100th edition of the MICHELIN guide France : Market launch of the MICHELIN Pilot Sport 3 and MICHELIN Pilot Super Sport tires : Introduction of the MICHELIN Pilot Road 3, the first dual-compound tire with sipes. 2012: European launch of the new MICHELIN ENERGY Saver+ and MICHELIN Agilis+ tires. Market launch of the ultra high performance MICHELIN Pilot Sport Cup2, the only tire 2013: certified for use on the new Ferrari 458 Speciale, Porsche 918 Spyder, AMG SLS Black Series and R enault Megane RS Trophy R. 2014: The MICHELIN Premier A/S car tire with a self-regenerating tread is presented at the North American International Auto Show in Detroit. 16