Recycling otr giant tyres

RECYCLING OTR GIANT TYRES

Historical Stock

Thousands of tires p/

year

Main Impacts

Difficulty in obtaining environmental licenses

Incidence of fines and constraint for future operations

Operational areas occupation

Possibility of proliferation of diseases

Maintenance Costs

Several kinds of challenges

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Several Recycling Possibilities

Rubber Products (carpets for cars, shoe tread…)

USA – material recycling vs energy recovery

Energy source in the cement industry (Tire Derived Fuel)

Asphalt Roads

Floors for courts and public spaces

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

THE MISSING LINK

Missing strong link in the industrial chainNo business model

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

DEVELOPING A SUSTAINABLE

ECOSYSTEM OF PARTNERS

Economy

EnvironmentSociety

Sustainable Profit for our partners

Ecofriendly Supply chain

Integrated to communities

Michelin Ambition = Differentiate its offer

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

MICHELIN BUSINESS MODEL

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

MICHELIN RECYCLING SOLUTION TAKES IN CHARGE YOUR USED GIANT TIRES, RECYCLE THEM AND DELIVER YOU AN ENVIRONMENTAL CERTIFICATE.

Value Proposal

Thanks to a personalized diagnostic of your initial situation and specific requirements you will benefit from a turnkey solution for recycling giant tires and be able to

• Commit on a targeted number of tires recycled

• Achieve some of your Sustainable Development goals

• Provide a full traceability of your Michelin tires

You will act for a Greener & Responsible image for your Mine thanks to Michelin Recycling Solution.

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

8

Used tires

Transport

Process

Workshop

Operator

Logistic

Recyler

Mine

Michelin

Peace of Mind Solution for miners

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Michelin solutions

Ecosystem of Partners

Reasons to Believe

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Consul-ting

Worldwide Ecosystem of Partners

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Michelin solutions

Ecosystem of Partners

Exclusive process

Successful Pilot

Customized approach

Reasons to Believe

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

• Capture your specific Sustainable Development Challenges

• Diagnostic recycling and supply chain opportunities of your ecosystem

• Customized commercial proposition

Step by step implementation

• Commitment on tire quantity to recycle

• Environmental certificate

• Reporting on KPI’s• Full traceability for

Michelin tires

Customized deliverables

• Full delegation solution

Peace of mind

Key Features

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Listen & Understand Expectations and

opportunities from mine and its stakeholders

• Corporate Sustainable Development priorities

• Regulation context and trend

• Government watch• Communities watch• NGO watch• Communication

opportunities• Rubber reuse

opportunities• HSE constraints

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Diagnose Study and design an

optimized recycling chain• Research local market for

partners (SP, recycling, logistic, maintenance)

• Research local transportation infrastructures

• Map all potential partners• Study local regulation• Study process integration

with mine site• Study process integration

with recycling plant Approach &

negotiate with potential partners• Tender when necessary• Quotation

Commercial proposal

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Commit and Execute Letter Of Intent Long term

agreement with Mine (≥ 5 years)

• Tire recycling• Sustainable

Development KPI’s reporting, …

• Disposal certificate• Other value added

deliverables Contracting with

selected partners Realization

• Cutting Process• Workshop building• Industrialize link with

recycling process • Supply chain process

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Operate and Deliver

Tire are removed on an agreed schedule

Agreed KPI’s reporting

Agreed value added deliverables

Monthly invoice

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

Bec

ause

Pric

e w

ill b

e

Pric

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ill ra

ngeMichelin cost depends

on several parameters like• Taxes• Building, Labor, Energy cost• Distance to the selected

recycling facility• Transport network • Size of tires

Michelin is committed on Sustainable Development

From

$3,000 to $4,000 per tire

-Significant Rebate

for Michelin Tire

+ $50,000.00 fee

per Diagnostic per mine

Customized to each operational model and each tire sizeMore Attractive for Michelin tires

Pricing

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

• Diagnostic • Negotiation• Proposition

Listen Realization Com mit

• Operate• Invoice

Go Live

Agreed Duration

X1X0 X3X2

9 months4 months 1 month

Deployment Process

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding

THIS PRESENTATION IS FOR DISCUSSION PURPOSES IN THE SPIRIT OF COOPERATION AND OF THE LONG-TERM RELATIONSHIP

BETWEEN THE PARTIES.  NOTHING HEREIN IS INTENDED AS OR SHOULD BE CONSTRUED AS A CONCESSION, WAIVER OR STATEMENT OF POSITION WITH RESPECT TO ANY RIGHTS

THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND SHOULD NOT BE SHARED WITHOUT MICHELIN PERMISSION.

Michelin Recycling Solution - Michelin Confidential - For discussion only, not binding