PARISGroup Michelin's strategic objectives for the coming seven years include achieving a 15-percent return on capital employed and delivering an across-the-board product performance improvement of at least 10 percent, CEO Jean-Dominique Senard said during a recent investors' conference.
Speaking at the firm's fall conference organized by Kepler Cheuvreux, Mr. Senard said Michelin has laid the foundations for a new phase of dynamic growth, led by the firm's innovation capabilities, improving competitiveness and robust gains in the most promising market segments.
He also emphasized the group's sustained progress over the 2011-2015 period, as well as its strengthened balance sheet.
Michelin's six major performance and responsibility objectives for 2020 are:
c Improve product performance by at least 10 percent vs. 2010 while using fewer raw materials in their production;
c Enhance the responsible purchasing, production and supply-hain processes, in particular to improve energy efficiency in manufacturing and reduce the carbon footprint;
c Drive sustainable financial performance by delivering $1.6 billion in structural free cash flow per year and generate at least a 15-percent return on capital employed;
c Pursue programs to improve employee engagement, well-being and development;
c Live in harmony with host communities, by deploying employee-driven outreach programs and helping to create local jobs; and
c Promote better quality of life through clean, sustainable mobility, safer roads and recycling solutions to support a circular economy.