Marketing Plan

Marketing Plan

The Michelin Corporation today is the world's number one tire manufacturer with 19.4%* market share. Michelin is at the forefront of all tire markets and travel-related services thanks to the quality of product it offers. Michelin is an undisputed leader in the most demanding technical segments and designs forward-looking solutions to help the road transportation industry in its bid to improve competitive edge and to meet modern societies' ever more pressing needs for safety, fuel efficiency and respect for the environment. To further strengthen its position and performance, Michelin pursues a global, targeted growth strategy focusing on high value-added segments and on expansion in the higher-growth markets while improving its productivity across the board.

History

1889 Edouard and Andrй Michelin founded Michelin, today the largest tire

manufacturer in the world, as a small rubber factory in Clermont-Ferrand,

France.

1895 First car tire is developed.

1898 Birth of Bibendum (The Michelin Man)

1937 The first truck tire with a steel casing is developed.

1946 Develops their first passenger car radial tire.

1952 Develops their first truck radial tire.

1981 Develops their first aircraft radial tire.

1987 Develops their first motorcycle radial tire.

1994 Develops first generation of fuel-efficient, low-resistance tires.

Michelin's mission statement is "To make a sustainable contribution to progress in the mobility of goods and people by constantly enhancing freedom of movement, safety, efficiency and pleasure when on the move."

Edouard Michelin is head of manufacturing at the Puy-en-Velay (France) plant and is

Michelin North America's CEO and Chief Operating Officer. He was appointed Joint Managing Partner in 1991 and has headed the Michelin Group since 1999. Renй Zingraff is the Quality manager for the UK plants. She is head of career management for Group executives. She also heads the Michelin USA's industrial facilities and was appointed Joint Managing Partner in 1986. Michel Rollier heads Michelin's Legal and Financial Affairs Departments and is the Group CFO. He was appointed Joint Managing Partner in 2005.

The Managing Partners run the Company and report to the Supervisory Board and the Annual Shareholders Meeting. They prepare the Company accounts and recommend the appropriation of profit/loss for the financial year. The fact that the Managing Partners are jointly, severally, and personally liable is the best guarantee shareholders can have that Michelin will be managed in their best interests now and in the future.

The Supervisory Board monitors management decisions on behalf of the Shareholders. The Supervisory Board ensures that the financial statements give a true and fair view of the state of affairs of the Company, reviews the conduct of Company business, and advises the Managing Partners on their recommendations to the Annual Shareholders Meeting, especially concerning appropriation of profit/loss. To perform its monitoring function, the Supervisory Board has the same powers as the Statutory Auditors and access to the same information and documents. It reports on its work to the Annual Shareholders Meeting. The Supervisory Board is also responsible for approving any agreements entered into by Michelin with entities in which a Managing Partner, a Supervisory Board member or a Shareholder owning more than 5% of Michelin's voting stock, has a direct or indirect interest. The Supervisory Board also acts as the Remunerations Committee when in plenary session. It has appointed an Audit Committee, comprising of four members, three of whom are independent. The Supervisory Board met four times in the course of 2002.

The Supervisory Board has the responsibility of appointing an Audit Committee to prepare its account reviews and audit sessions. The organization, functions and operation of the Audit Committee are governed by a set of rules adopted unanimously by the Supervisory Board. This code of conduct requires the Audit Committee to draw its appointees from among the members of the Supervisory Board, to consist of four members, three of whom are independent and to elect its President from among the independent members. The Audit Committee met twice in 2003. On each occasion, it heard the review of CGEM's interim and annual accounts prepared by the Group's Finance Director, accountants, and internal auditors. It also heard the report of the Statutory Auditors reviewing the progress of their work and the Group's accounts as well as a review of the responsibilities and working methods of Michelin's internal audit department, presented by its head. As part of its mission to lay the groundwork for the Supervisory Board's review of Company accounts, the Audit Committee examined in particular CGEM's main off-balance sheet commitments and associated risk.

The Supervisory Board also performs the functions generally delegated to a Remunerations Committee. In this capacity, the Supervisory Board reviewed the employee shareholder and stock option plans for 2002.

The many strengths displayed as a global player present on all tire markets, Michelin intends to remain world No.1 in tires and mobility assistance through a strategy built around promoting "better mobility" and, on the strength of the outstanding quality of its brands, maintain all-round excellence in innovation, products and services. The Group takes advantage of its strong local presence to adapt to the specific features of the markets. It pursues a strategy of sustained organic growth, backed by selective acquisitions and partnerships to penetrate new markets. Michelin's objective is to perform well over the long-term by growing than the market on the attractive segments that it has chosen, developing its positions in high-potential regions, reducing its overheads, and increasing its flexibility and proactiveness. To achieve this, it is implementing a focused strategy. Opportunities in technology, innovation, marketing, and service will allow the Group to