1. Strategic Talent Plan in
Michelin China Julie Chu Nov. 2009

2. Agenda World tire market Michelin introduction Michelin in China
Talent Market in China (Past & Present)
Strategic talent plan in Michelin China

3. The world tire market in 2005
Others
Bridgestone
21.3%
Toyo
1.8%
18.2%
Kumho
1.9%
Cooper
2.1%
17.7%
Michelin
Hankook
2.5%
Yokohama
2.9%
Sumitomo
3.6%
4.5%
17.3%
Pirelli
6.3%
Goodyear
Continental
Source : Global Tire Report 2006 (Tire Business daté du 28/08/2006)

4. Tire Market in China Main competitors Bridgestone Good Year Hankook
Local manufacturers

5. Products and Services Earthmover Tire Aviation Tire
Passenger Car And Light Truck Tire
Truck And Bus Tire
Earthmover Tire
Aviation Tire
Maps & Guides

6. Multi-Brand Strategy
Michelin: The Most Famous Tire Brand in the World,
Warrior: The Best Known and Longest Established
Local Brand in China, Targeting at Mass Market.
BFGoodrich: Originally from the US, Targeting at
New-Generation Drivers, Who See Motoring as a Form
of Excitement and Expression.

7. Customers Original equipment Vehicle manufacturers for all categories
and all vehicles,
from bicycles to huge earthmovers
Who are the Michelin Group's original equipment customers?
The vehicle manufacturers.
What do we provide to these customers?
Technical partnership and technical certification.

8. Customers Replacement Distributors Specialist traders Dealers
Auto centers
Garages, service stations
Supermarkets
Our customers are also – and above all – replacement customers.
Our products are distributed via various channels:
- specialist traders;
- dealers;
- auto centers;
- garages;
- service stations;
- supermarkets.
The companies in the Group use the multi-brand portfolio to offer products and terms adapted to the specific features of the different distribution channels so that they can meet each customer's requirements.

9. Michelin History in China

10. Michelin History in China
1988: Sales Office Hong Kong

11. Michelin History in China
1989: Representative Office Beijing

12. Michelin History in China
12/1995: Joint Venture 1 (MSTC) With STGF Shenyang;
1996: Production of the First Passenger Car Tire;
04/1997: 3 More JVs With STGF Shenyang.
1/1999: Start Truck Tire Production in Shenyang

13. Michelin History in China
1998: Training Centre in Beijing

14. Michelin History in China
4/2001: Set Up a Joint Stock Company With STRC
Shanghai Michelin Warrior Tire Co., Ltd.

15. Michelin History in China
12/2002: Set Up Michelin( China) Investment Co.,Ltd.

16. Locations in China Bejing北京 Shenyang沈阳 Xi’an西安 Shanghai上海 Chengdu成都
Hainan
Xinjiang
Quinghai
Tibet
Sichuan
Yunnan
Guangxi
Guangdong
Hunan
Inner Mongolia
Gansu
Zhejiang
Ningxia
Shanxi
Guizhou
Shanghai
Fujian
Jiangxi
Hubei
Henan
Anhui
Jiangsu
Liaoning
Jilin
Heilongjiang
Hebei
Tianjin
Shandong
Guangzhou广州
Bejing北京
Shaanxi
Shanghai上海
Shenyang沈阳
Hong Kong香港
Chengdu成都
Wuhan武汉
Xi’an西安

17. China Talent Market
Past & Present

18. China’s Talent Market Past

19. China’s Talent Market Past

20. China’s Talent Market The Present

21. China’s Talent Market The Present

22. China’s Talent Market

23. One of the Top Priorities for a CEO is Attracting and Retaining top talents
70% of Top 500 Fortune companies is experiencing Talents shortage
92% of companies present in the market is also experiencing a Talents shortage
Talents’ Turnover in percentage
HRM Challenges in China, by Prof. Serena ROVAI Uni-Italia Intergovernament Centre Anantara LtD

24. Facts sheet of Michelin China SP
More than 5500 employees
Double digital growth of headcount in some activities
Average Volume: a few hundred hires by year
5% senior management ,5% technical workers and 90% white collars
Nearly 50% commercial staff
Less than 8% turnover rate among white collar employees

25. Mission Of Service Personnel
People is not a resource, but an asset.
Ensure that motivated, responsible and competent people are available where and when they are needed at all times and in all areas of activity.
This mission must be fulfilled at the highest level of performance in terms of quality, cost and timeliness.

26. 5 Principles of SP Preserve the cohesion of Group Michelin
Seek to establish and manage the best match between the person and the company
Develop the international outlook of the individuals and teams
The management and development of personnel is a responsibility shared by the person, the manager and the Personnel Service
Guarantee and facilitate a means of recourse for everyone
Preserve the cohesion of Group Michelin

27. How SP to cope with business growth?
SP = Service Personnel
Recruitment
Integration
Training
SP = Strategic Personnel
Career development
GPC
Rewards
Engagement & retention

28. Recruitment
We don’t only hire for a specific position, we hire people to meet the company’s current and future needs
Position fit
Cultural fit
Development fit
Career managers’ involvement in the recruiting process
SP reserves a special budget to hire people who may not necessarily be needed at the current stage

29. Integration Process Started since the recruitment stage
Co-managed by the business manager and the career manager
Monitoring the key factors to the successful integration
Relationship and networking
Role clarity
Culture
Early wins
Accelerate learning

30. Career management process
Who is involved?
Individual
Manager
Career Manager
Career Manager

31. What is career management?
We manage our people’s potential development
Employee’s potential can be assessed
Through their performance
Through their behaviors and the way to reach the targets
Potential characteristics are grouped under 3 headings
Driving energy(leg)
Thought (head)
Leadership(heart)

32. Potential Matrix Driving energy(leg) Thought (head) Leadership(heart)
Ambition
Energy
Dynamism
Adapbility
Thought (head)
Make sound decision
Act strategically
Think creatively
Leadership(heart)
Communication
Motivate others
Develop others
Establish relationship & trust

33. Gestion Previsionnel des Competences
GPC is a continuous and long term focused system to anticipate manpower needs in the coming 5 years
It’s integrated into the annual budget process and implemented at country level
To make sure critical competence localized and to meet current and future needs on critical competence.

34. How to implement GPC? Population assessment/Metier diagnosis
Succession plan & localization plan
Vivier / pepiniere recruitment
Overseas training
Expatriation

35. Remuneration Philosophy
Market
We pay our employees according to market factors.
We pay according to job responsibility.
Position
Performance
We pay according to performance results.
We pay according to personal competency.
Person

36. By doing all the previous mentioned correctly, we can achieve a high level of employee engagement and employee retention

37. Thanks for your attention