In the current economic climate, it can sometimes feel hard to think about your plans for the future. In this edition, we look at the simple things you can do today, to improve your lifestyle tomorrow.

If you think pensions are confusing, you are not alone. However, we have been working hard to make planning for your future much easier. Our aim is to ensure you have the information you need to understand your pension and the decisions you need to make. This newsletter is just one of the ways we do this, so please take a few minutes to learn more about your options.

With this in mind, we are very pleased to announce that the Plan was nominated for ‘Best Member Communications’ in the Financial News Awards for Excellence in Institutional Pensions.

This nomination recognises the recent work we have undertaken to improve the quality of the communications we send to members. We are very pleased to have been acknowledged as a leader in pension communications but, more importantly, we are pleased to have made a real difference to the level of understanding amongst our members.

How can we help you?If you have any questions or would like to make any suggestions to improve future communications, please contact us at michelin@pensionsoffice.com.

Yours sincerely

Chris Wood

Chairman to the Trustees

Your future in focus

Pension news from the Trustees of the Michelin Pension and

Life Assurance Plan (the Plan)

YOUR pensionYOUR future

YOUR way

YOUR pensionYOUR future

YOUR way

YOUR pensionYOUR future

YOUR way

10 second summaryWhat’s inside? • Helping you plan for tomorrow

• Your pension, your way

• Your guide to investing

• Behind the headlines

• Your new pensions team

• Choose the right way for you

Chris Wood

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Are you making the most of your Plan?TheDefinedContributionSectionworkslikea savings account for your retirement.

You and the Company save into your account, and then you invest this money to help it grow. When you retire, you then use this money to buy a retirement income.

The sooner you start saving, the more chance your savings have to grow. Could you be doing more to improve your outcome?

Helping you plan for tomorrowTo help you save for your life when you stop working, the Company provides you with a valuable pension plan. However, this might not be enough for you to live the life you want. Why not take a few minutes today to explore some simple things you can do to live a better life tomorrow?

Have you set your retirement goals? Ifyourretirementissomeyearsoff,youmayfindithardtothinkaboutyourretirement goals. Will you own your own home or be paying rent? Will you want to travel? What might be your biggest expenses?

To help, the Department of Work and Pensions has set out how much income people might need in retirement. In other words, how much of your working life income you might need to cover your costs when you stop working.

This is a good starting point to consider how much you might need to save.

What proportion of your income could provide an acceptable standard of living?

Annual income bracket whilst at work

Target income you might need in retirement

Under £12,000

£12,000 to £22,100

£22,100 to £31,600

£31,600 to £50,500

Over £50,500

80% (i.e. £9,600)

70% (i.e. £8,400 to £15,470)

67% (i.e. £14,807 to £21,172)

60% (i.e. £18,960 to £30,300)

50% (i.e. £25,250)

These ratios are based on research by the Pensions Commission and include theStatePension.Duringtheresearch,thePensionsCommissionfoundthatpeople on lower incomes may need a higher percentage of their annual income to enjoy what some consider a minimum acceptable standard of living during retirement. However, how much you need will depend on your individual circumstances.

Three simple steps to improve your life after workOnce you have a rough idea of how much you might need, you can check whether you are on track for retirement.

Youcanusethebenefitstatementyoureceivedin2012asaguidetothepension you could receive when you retire, or log in to Member Online via www.michelin-pensions.co.uk to see your savings.

Review your investments – Are your chosen investment options helping youachieveyoursavingsgoals?Somefundsaimtodeliverhigherreturns than others, but they come with more risk of ups and downs in the short term. On the other hand, some funds have fewer risks with morestablereturnsbutdeliverlowerreturns.Seepage4toexploreyour choices.

Savemore – Even saving a little extra each week could help you enjoy a better life when you stop working. And when you make Additional Voluntary Contributions, the Government gives an extra boost to your savingsthroughtaxrelief!Tofindouthowmuchyoucansave,readyour member guide, available at www.michelin-pensions.co.uk

Work longer – You might need to consider delaying your retirement if you cannot afford to save more now or if you are uncomfortable investing in higher-risk funds. If you do decide to change your selected retirement age do not forget to let the Plan’s administrator know as this can affect your lifestyle investment strategies (see the back page).

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Your pension, your wayThe stories our people tell provide valuable insight into how retirement planning can work.

Here,weinterviewMarkGibsonfromtheStoke-on-TrentTechnicalSurveyGroup, and talk to him about how he recently discovered a few simple ways to plan for his future.

Interview with Mark Gibson Mark Gibson talks about the simple way to plan for the future

How long have you worked for the Company and what is your role?

LastJuly,IstartedanewjobwiththetechnicalsurveygroupinStoke-on-Trent. Previous to that I was in the customer service centre on a technical helpline. I actually started as an apprentice in 1976. They used to say, you either joined for life or left very quickly, and that’s true… This year, I suddenly realised I’ve got 10 years until I’m 65 and will want to retire!

What do you want to do in your retirement?

I hope I’ll have enough money to spend more time visiting places I’ve never been to before. Not necessarily exotic places, but places around the UK. I travelled a lot while I was working, but it’s always been a matter of going through places rather than stopping and seeing them. I’d like to explore Scotland,althoughI’dhavetopicktherighttime.

Do you think you are saving enough?

I have three children – twins who are 17 and a daughter who is 22 – so what I invest in my retirement is important. There’s always two things you need to consider – what you need to spend today and what you need to save for the future. Whether I’ve got the balance right is something I won’t know until I get there, but I know I could always do with saving more money!

What encouraged you to think more seriously about your future?

What really encouraged me to change the way I was saving was the shock of reaching55,andseeingafinancialadviser.Youalwaysfeelwithinyourselfthat you’re a lot younger than you are, I’m afraid!

Thefinancialadviser,verykindly,gavemesomefreeadvice.Hetoldmethat what I’d been invested in was very safe – in fact, too safe for me – and I could afford to be less conservative. He suggested some investments that may be more suited to me, so I moved my investments around.

What have been the most valuable resources to help you with your retirement planning?

Ifirstdecidedwheretoinvestmypensionwhenwemovedintothenewpension Plan and I didn’t look at it again until six months ago. I couldn’t remember where I invested my money and whether it was the right place. It seemed to have grown at a reasonable rate, but I had nothing to compare it to.

I’ve visited the Michelin website and I’ve used the calculator within Member Online and found that very useful. The website was also great in terms of seeing what sort of funds were available for me to invest in. However, I also think something that would be really useful is a tool that shows a comparison of how your account could have grown differently in different investment funds.

What tips would you offer your colleagues?

There’s no point in putting decisions like this off and thinking that Michelin will look after it for you. Your retirement is your personal responsibility and there are things I could have and should have done before that would certainly have helped when I retire.

It’snevertooearlytotakethatfirststep.Evenifitcostsalittlebitofmoneyto get a little bit of advice, it’s likely to be money well spent.

See your future online

AsamemberofourDefinedContributionSection,youcancheckifyou’reontrackusingthe online ‘What if?’ calculator.

SimplylogintoMemberOnlinevia www.michelin-pensions.co.uk and click on the ‘Pension calculator’ tab which can be found on the right of the page.

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Your guide to investingThe investment options you choose can make a big difference to your retirement savings. If it’s been a while since you checked where your money is invested, use these pages to explore your options and make sure your choices are right for you!

Reducing the costs of your investmentsAll investment funds carry a cost – called the Annual Management Charge. This charge covers the cost of buying, selling and managing the assets.

All of our Annual Management Charges are low, but when it comes to your retirement savings, we know that every little bit helps. That is why the Trustee Board and its advisers recently negotiated a reduction in the Annual Management Charge you pay for the most popular funds from February 2013.

The following funds’ Annual Management Charges all reduced by 0.05%:

• Aquila UK Equity Index

• Michelin Aquila 30:70 Global Equity Index

• Michelin Pension Plan Balanced

• Aquila Over 15 Years UK Gilt Index

• Aquila Over 5 Years UK Index Linked Gilts

• Money Market

Someofthefundsyouchoosemighthavehigherchargesthanothers.Funds with higher costs are often expected to deliver higher returns over the long term. They cost more because the fund managers need to do more work to manage the fund to try to achieve these higher returns.

Please remember, you should consider a number of factors (other than investment fees) when considering which fund is right for you.

Reminder – how to choose the right investments for youYou can choose to invest your account in a lifestyle strategy (we offer two) or you can make your selection from the full range of funds available in the self select option. Over the past year, we have also added two new funds to the range – to see the full list of investment funds visit www.michelin-pensions.co.uk

To make your investment choice, you need to understand:

• what performance you are hoping to achieve;

• how you feel about investment risk;

• whether you have time to ride out ups and downs in performance; and

• what you plan to do with the money in your pension fund on retirement.

Visit www.michelin-pensions.co.uk to access some great tools including animations (explaining pensions and investing in just 60 seconds), an investment guide (with a quiz to help you understand what sort of investor you are) and access to Member Online (so you can log in and see where you are invested).

Have you selected your retirement age?If you are invested in a lifestyle strategy, you need to check your selected retirement age.

A lifestyle strategy changes your investments automatically as you approach retirement into lower risk investments.

Your selected retirement age determines when you move into these lower risk investments, so if your plans change, you need to update this by writing to the Plan’s administrators – see page 12.

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New look benefit statementsIfyouareamemberofboththeDefinedContributionSectionandDefinedBenefitSection,inlate2012youwouldhavereceivedanewandimprovedannualbenefitstatement.ThiswasdesignedtohelpshowthetotalvalueofyourbenefitsfromeachSectionandhelpyousee more clearly if you are on track for retirement.

The new statement was a result of feedback we received in focus groups held in 2011, and many of you have already told us how valuable the combined statement has been. You have really appreciatedseeingallofyourbenefitsinoneplace,inaneasytounderstand format.

If you did not receive a new statement, we are pleased to announce that this year we are aiming to ensure that all active membersreceiveastatementinthisnewformat.Staytunedlater this year for details.

If you would like to make any other suggestions to improve our benefitstatements(orothercommunications)pleasecontactusat michelin@pensionsoffice.com

What’s been happening in the investment markets?We’re pleased to report that in the year to 31 March 2013, we generally saw good performance from the investment markets.

Sharemarketsrosestronglyovertheyearasbeliefgrewthatthe worst of the world’s economic woes were over and that growth would improve in future. This was despite some of the well-documented issues such as the Euro crisis and the collapse of a number of high street companies in the UK.

Over the 12 month period, the UK stock market (as measured bytheAllShareIndex)roseby16.8%andglobalsharemarkets rose 17.1%.

In other good news, despite the downgrading of UK Government debt by one of the major rating agencies, bonds also produced positive returns over the year. Indeed, bondsthatprotectinvestorsagainstinflation(knownasindexlinked gilts) gave investors returns of more than 10% over the year.

The only market that did not perform so well was property. Although returns were still positive, they were lower than other investments. Whilst the values of many commercial properties fell (e.g.shops,officesandindustrialsites),rentsremainedrelativelyrobust, meaning results for investors overall were positive.

Overall, this is good news for our members and means that it is likely that your savings have grown well over the past year. For more information, log in to Member Online via www.michelin-pensions.co.uk

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Behind the headlinesWe often see pensions in the news headlines. But what do these headlines reallymeanforyouandyourbenefitsunderthePlan?

Pension liberation – a warning to membersIn normal circumstances, you cannot access your pension before you reach the ageof55.Pensionliberationiswhensome(oftenunregulated)firmsofferyouthechancetoaccessyourpensionbenefitsearly.Althoughitsoundsliketheyare offering to help you – they are not.

Please be extremely wary of these offers. If you try to access your savings early, you could be personally liable for large tax bills, sometimes as much as half the value of your retirement account.

ThePensionsRegulatorhaslistedsometacticsthatthesefirmsuse,whichyoushouldbewaryof:

• You are told you will be able to access your pension before age 55.

• You are approached via unsolicited text messages/emails.

• You have been told of a ‘legal loophole’.

• You have been asked to transfer money overseas.

• You have been offered a ‘loan’, ‘saving advance’ or ‘cash back’ from your pension.

• Your credit history is poor and you have been approached for that reason.

Remember that if something sounds too good to be true, then it probably is. If you have been approached by a company/individual as described above you should contact Action Fraud on 0300 123 2040.

You can read more about pension liberation on the Pensions Regulator’s website at www.thepensionsregulator.gov.uk/regulate-and-enforce/pension-liberation

An update on the new flat-rate State PensionInJanuary2013theGovernmentconfirmeditsplansforanew,simplifiedflat-rateStatePension,likelytostartinApril2016.Currently,thebasicStatePensionispaidataweeklyrateof£110.15(2013/2014taxyear),whichcanincreasetoover£250perweekifyoureceivetheStateSecondPension.

Thenewsingletierflat-rateStatePensionwouldseetheexistingbasicStatePensionandStateSecondPensionmerge.Thismeansthatanyonewhohasarecordofatleast35years’NationalInsurance contributions will be entitled to receive £144 per week in today’s money.

However,ifyouhavebeenamemberoftheDefinedBenefitSection,whichwascontractedoutoftheStateSecondPension,yourStatePensionislikelytobedifferentthantheflatratethathascurrently been communicated.

IfyouhavebeenamemberoftheDefinedBenefitSection,youwillhavebuiltupincomeinthePlaninsteadofStateSecondPension.YoucangetaStatePensionforecastbyvisitingwww.gov.uk

TheproposedchangestotheStatePensionwillnotaffectanyonewhohasalreadyreachedStatePension age by the time the reforms take effect.

The rising State Pension ageInthemeantime,theStatePensionageisrisingtoo:by2020itwillbe66forbothmenandwomen,and there are plans for this to increase again to 67 by 2026.

Visit www.gov.uk/browse/working/state-pension for more information.

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Changes to pension tax allowanceThe Government has announced further cuts to the amount you can save forretirementthatbenefitsfromtaxrelief.Thiswon’taffectthemajorityof our members, but the following changes will come into effect from 6 April 2014:

• The annual allowance will be reduced from £50,000 to £40,000.

• The lifetime allowance will reduce from £1.5 million to £1.25 million.

Youcanfindoutmoreatwww.gov.uk

Ensuring all employees are members of a pension planNot enough people are saving for retirement, so the Government has introduced laws that encourage more people to join a pension plan. The new laws mean that most workers who are not already saving through a pension plan will be automatically signed up to one by their employer. This is called automatic enrolment.

We recognise how important it is to save for the future. That is why we already offer our employees access to a valuable pension plan. Indeed, most of our employees are already in a pension plan that meets the Government’s requirements.

ThenewlegislationwillapplytoMichelinfrom1August2013andATSEuromaster from 1 November 2013.

As you are already a member of the Plan, little will change for you.

Tofindoutmorevisitwww.gov.uk/workplacepensions

What are the annual and lifetime allowances?

The annual allowance is the amount set by the Government that limits the amount of money that can be paid into a pension each year without paying any tax on it. If you exceed this limit then you may incur a charge.

The lifetime allowance works in a similar way but is based on your entire working life.

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Your new pensions team This year, we’re pleased to welcome a new member of the pensions team, Pauline Molloy. Pauline was previously a personnel manager with Michelin, and brings with her a wealth of experience working with our members.

PaulinewillreplacethecurrentHeadofPensions,Compensation&BenefitsandSecretarytotheTrustees, Colin Porteous. Colin has been with Michelin for some 36 years and will be retiring in August.Throughouthistenure,Colinhasdiligentlyfulfilledhisrole,alwayswithakeenattentiontodetail. He has also worked hard to support members of the Plan and help them better plan for their futures.

With this in mind, we are very pleased that Colin has agreed to continue his commitment to the Plan and has accepted the role of Trustee Director of the Plan. On behalf of the Trustee Board, we would like to wish both Colin and Pauline well as they embark on these different journeys. We are sure they will both continue to provide an invaluable contribution to the Plan and its members.

Interview with Colin PorteousColin Porteous shares his 36 years’ experience working at Michelin

How long have you worked for Michelin and what have been your roles?

It’s coming up to 36 years – compared to a lot of my team I’m short service though!

MyfirstjobatMichelinwasasanindustrialengineerhereandinFrance.After11years,Imadeaconsciousdecisiontomoveintofinancetogetmoreofabalancedbusinessapproach.IworkedasabusinessfinancialcontrollerandthenmovedintomonitoringtheCompany’sinsuranceandproperty investments.

My role in pensions management began in 2002 and I’ve thoroughly enjoyed it!

What have you liked best about your role?

The most enjoyable part has been working with people and helping them understand their pensions. I’ve particularly enjoyed working with shop stewards who are always keen to get a better understanding of pensions.

Early in my pensions role, I was also involved with a study group who came up with the design ofthePlan’sDefinedContributionSection.Thatstudygroupworkedsowell.Itspentsomuchtime working to ensure we developed a good scheme – making sure contribution levels would produceagoodretirementoutcomeandthatmembershadsomeflexibilityinhowmuchtheypay in. This has been a great achievement.

What challenges do you think members face planning for retirement?

There’s often a ‘word blindness’ that happens when talking about pensions and investments. Pensions as a subject is very interesting, but you have to get through the initial barrier that people have.

Pensions are so important for people, but often so complex. If it wasn’t a challenge, it wouldn’t be as rewarding!

How are you planning to spend your retirement?

Retirement for people can be a bit of a cliff edge, where you go from all of this involvement and activity in a subject, down to no involvement at all. From my point of view I’m delighted to be able to maintain an involvement with this Plan on the Trustee Board. I may also do some voluntarywork,likeregisteringasavolunteeratthePensionsAdvisoryService.

And I’ll play more golf!

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Company Nominated Trustee Directors

• Chris Wood (Chairman)

• Gill Duddy

• Ian Murray

• David Rowe

• Vincent Dormieux

Member Elected Trustee Directors

• David Brady (Michelin hourly paid)

• Robert Taylor (Michelin hourly paid)

• Jeff Deakin (Michelin staff)

• FrankRennie(ATSEuromaster)

SecretarytotheTrusteeBoard

• Colin Porteous (to July 2013)

• Pauline Molloy (from July 2013)

Your Trustee BoardThe Trustees’ duties include the following:

• AdministeringthePlanandprovidingbenefitsinlinewiththePlanRules.

• InvestingthemoneyinthePlanforthebenefitofmembers.

• Communicating to members.

• Receiving expert advice in areas where they are not experts.

The Plan’s administrators and professional advisers help the Trustees with these duties.

Later this year there are likely to be some changes to the Trustee Board. We expect Colin Porteous to join the Trustee Board as a Company Nominated Trustee Director.

Interview with Pauline MolloyPauline Molloy shares her initial impressions moving into pensions

How long have you worked for Michelin and what have been your roles?

I’veworkedatMichelininStoke-on-Trentfor25years.Peoplealwaysfindthisodd–withmyScottishaccent they think I must have worked in Dundee!

I’ve worked in a few roles over this time. I started as an industrial engineer and by coincidence, Colin wasactuallymyfirstmanager.Iworkedinafewproductionroles,thenbecameatrainingmanagerfor the site. After this I moved into personnel, and now pensions!

What made you want to join the pensions team?

I’ve always had an interest in numbers – I was a maths teacher before joining Michelin. Combining thisinterestwiththepersonnelsideofmyroleseemedtobeaverygoodfit.Ialsorecognisedtheimportant role your pension has when you retire. The pensions team is critical to employees and their retirement planning.

I’m still very new to this role, but I’m looking forward to learning a new part of the business that is so very important. There are a lot of advisers and experts that support the team and the Plan here – I’m looking forward to being a part of it and helping our members.

How does your team help keep members up to date with their pension?

The newsletter and the website are key to help explain what’s happening. We also have the Michelin Pensions Team, with Kevin Winstanley and Pam Parker, as well as the administrators.

I’d encourage people to visit the website – it’s really easy to use and you can access information about your own account, as well as information about the Plan.

We don’t need to be frightened to look at our pension information – it’s not as complicated as you might think. There’s a lot of information there for you. The Company and the Trustee Board have been working hard to make this information as easy as possible for you to understand. A great example of this is the animations on the website which help explain pensions in 60 seconds.

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Money and member movementsThe Plan continues to grow as more employees join and members start saving more for their futures. The informationbelowincludestheDefinedBenefitSectionofthePlan.

How many members were in the Plan?The people below show you how many members were in the Plan on 31 March 2013.

Active Members 3,183

Retired Members 10,502

Deferred Members 9,989

Total members 23,674

The Plan’s financesYou can request a copy of the Plan’s full Annual Report and Accounts from Plan’s administrators using the contactdetailsonthebackpage.ThetablebelowshowsasummaryofthePlan’sfinancesfortheyearto31 March 2013.

Defined Benefit Section

Defined Contribution

Section

Value of the Plan at 1 April 2012 £1,436 million £72.9 million

Value of the Plan at 31 March 2013 £1,562 million* £90.9 million*

Do you have any defined benefit pension?

If you’re a member of the DefinedBenefitsSectionofthis Plan, you will receive an additional insert with relevant information for you.

* Unaudited

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Continue your journey onlinewww.michelin-pensions.co.uk – This is your one stop shop for your Plan. With general information about the Plan and updates of relevant news items, this site is a way for you to stay informed all year round. You can also use it to log in to Member Online and review or update your personal pension details.

Have you read our new Plan literature available on our website?

www.unbiased.co.uk – If you need access to an independentfinancialadviseryoucanfindonehere.

www.moneyadviceservice.org.uk – For more tips on building a better retirement and how to take the next steps.

www.gov.uk – For information about retirement planning and tax, as well as general public services. FindoutwhatStatebenefitsmightbeavailabletoyou when you retire, how to plan for retirement and much more by clicking on the ‘Working, jobs and pensions’ tab.

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Choose the right way for youWe hope that you have found this newsletter useful. It is now time for you to choose the right way to save for your retirement and here is what you can do.

Step 2: Find out moreVisit our website www.michelin-pensions.co.uk to watch oursimpleonlinevideos,andfindmanyothervaluableresources including your investment and member guide.

Step 4: Take actionIt’s a good idea to review your pension at least each year. Someofthemostcommonactionstokeepyoupensionon track are to:

• StartpayingorincreaseyourAdditionalVoluntaryContributions.

• Change your investments.

• Complete your Nomination form.

Youcanfindmostformsonourwebsiteorsimplycontactthe Plan’s administrators.

Step 3: Get helpSeekhelpfromanindependentfinancialadviserifyouneed help planning your future at www.unbiased.co.uk

Step 5: ReviewKeep track of your pension online at www.michelin-pensions.co.uk

Step 1: ThinkConsider how much you need in retirement and whether you are saving enough – see page 2.

CONTACT US

For questions about the Defined Contribution Section:

Michelin Pension and Life Assurance PlanFriends LifeBasingstokeHampshireRG216SZ

Email: Michelin@friendslife.co.uk

Call: 0845 671 7868

Your Plan has received an independent Pension Quality MarkThe Michelin Pension and Life Assurance Plan has been awarded a Pension Quality Mark by the National Association of PensionFunds.Thismeansitisahighqualitydefinedcontributionpensionplanandhasmetstrictcriteriarelatingtocontribution rates, governance and communications.

For questions about the Defined Benefit Section:

Michelin Pensions Administration PO Box 2281 StokeonTrent ST44ZT

Email:Michelin@pensionsoffice.com

Call: 0844 391 2460

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