2. 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
3. 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
4. THE MISSING LINK
Missing strong link in the industrial chain
No business model
Michelin Recycling Solution - Michelin Confidential - For discussion only, not
7. 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
12. •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
13. 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
14. 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
15. 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
16. 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
17. Because
Pricewillbe
Pricewillrange
Michelin 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 size
More Attractive for
Michelin tires
Pricing
Michelin Recycling Solution - Michelin Confidential - For discussion only, not
18. • Diagnostic
• Negotiation
• Proposition
Listen Realization
Com
mit
• Operate
• Invoice
Go
Live
Agreed Duration9 months4 months 1 month
Deployment Process
Michelin Recycling Solution - Michelin Confidential - For discussion only, not
19. 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
Editor's Notes
Michelin is eager to face the challenge with you thanks to its breakthrough process and its ecosystem of experts.
Michelin bring a key link in the recycling chain and build around a sustainable ecosystem of partners: profitable, environmental friendly and socially responsible. That’s why we propose a complete solution.
Michelin goal is to differentiate its offer not making additional profit : balance the economics, not to create a new revenue stream
What are we proposing to face the challenge
Mr Customer, Michelin can take in charge your used giant tires, recycle them and deliver you an environmental certificate.
With a personalized diagnostic of your initial situation and specific requirements, we will implement a recycling ecosystem and:
Take a contractual commitment target on number of tires recycled,
Define Corporate Social Responsibility goals.
We will deliver a full traceability of your Michelin tires.
Mr Customer, a Greener & Responsible image for your Mine thanks to tire recycling solutions!”
Le Groupe Michelin s’oriente solution et a créé une filiale qui intervient pour la 1re fois dans GC Michelin solutions – voici sa présentation officielle
Nous nous appuyons sur un réseau de partenaires présents mondialement.
OEM : Matteuzzi,
Service Provider: Otraco, Kal Tire, Klinge, Bailac,…
Consulting: Accenture, Athos
Recycling & Cement Cies: Lafarge / Sita / Colas
Logistic Provider: our network of tire 1/3rd party logictics
Maintenance: Matteuzzi maintenance network (ex. Nortesul, Central Marketing in NA) + other Cie to join
Ce réseau s’aggrandit régulièrement
3) Le process exclusif a été largement présenté hier
4) Le pilote avec Vale a été largement commenté hier
5) La dernière raison de croire est que nous approchons cette question avec pragmatisme en partant de votre situation géographique particulière, de vos challenges, de vos attentes pour construire une solution personnalisée. Je vais laisser la parole au chef de projet - Francois Vian qui va vous décrire comment cela va se déployer.
Thank you Marc,
As you understood the solution we are presenting to you is comprehensive and sustainable. To meet your targets in terms of sustainable development and cost effectiveness here is the 4 step process we are going to follow together.
We will move from one step to another step by mutual agreement.
Step 1 : listen to the expectation and opportunities from the mine and its stakeholder
Listen to the mine challenges in terms of non mineral waste management
Concretely this is a meeting between some managers of the mine and Michelin.
Step 2: Diagnosis
Michelin will study and design an optimized recycling chain
… DETAILLER …
We will approach and negotiate with potential partners
We will deliver a diagnosis report and a commercial proposal
Concretely a dedicated project manager at Michelin is already appointed in each zone to conduct this diagnosis in mine’s area. He will receive the support of a consulting Cie.
Step 3: Commit and Execute
Once you receive the diagnosis and the commercial proposal, you are free to move on or to stop the process.
If you move on, as we hope so, we will need a Letter Of Intent from you to continue on this step.
We put together with the mine, the base of a long term contract, including a commitment on a quantity of tire to recycle, but also other kind of value added deliverables that would help you to achieve your sustainable development goals (KPI’s reporting, disposal certificate, …)
We contract with partners
We start realizing the cutting machines, the building, the bridge with recycling process, the suppy chain process…
Step 4 : lastly, when everything is up and running, Michelin will start
…. DETAILLER …
Now what will be the price of this terrific offer? We are not going to give you very detailed information, but only order of magnitude.
The yellow bubble at the bottom represent our internal governance milestone. Just so you know the interest and commitment that we place is this offer: all governance milestone will be validated at central level.
Listen
Diagnose
Commit and Execute
Operate and Deliver
Now the presentation is over. I want to finish by sharing with you my conviction :
we have the best partners and technology on the market to solve for good your end of life tire challenges,
we have proven here in Brazil that the solution works and it can be cost effective.
Thanks to the support of our Company Michelin solutions and of all the executive board we are ready to deploy it across the globe
Thank you very much for your attention.
We will start in a few moment a dedicated session to exchange all together.