Fi First rst Qu Quart arter er 2020 0 Co Conference nference - - PowerPoint PPT Presentation

SLIDE 1

Fi First rst Qu Quart arter er 2020 0 Co Conference nference Ca Call ll

April 30, 2020

SLIDE 2

Forward-Looking Statements

Certain information contained in this presentation constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: the impact on us of the COVID-19 pandemic;

• ur ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential

competitors; increases in the prices paid for raw materials and energy; a labor strike, work stoppage or other similar event; foreign currency translation and transaction risks; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy

• f our capital expenditures; our failure to comply with a material covenant in our debt obligations; potential adverse

consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent

• ur estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date.

While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any

• bligation to do so, even if our estimates change.

2

SLIDE 3

Of

SLIDE 4

Responding to the Needs During COVID-19

4

Supporting essential workers on and off the road

CTSC TSC & Ra Raben ben Tire e offerin ering ‘Zero Contact’ service to Fleets GY Luxem xembour bourg g uti tili lized zed 3-D D printers ters to to produce

• duce

fac ace e shield eld par arts ts Discount counted ed an and free ee ti tire service vices s to to essential sential wo worke kers Dona nations tions of PP PPE E an and finan ancial cial supp pport

• rt to

to lo local cal heal alth th systems stems Free ee DOT OT inspections pections to to U.S.

• S. Fleets

leets

Ad Adapting apting Ho How We w We Wo Work rk Su Suppor porting ting Ou Our Co r Communitie mmunities

GY Auto to Service vice an and Just st Tires es

• ffering ‘Zero Contact’

service vice to to co consumer nsumers Glo lobal bal as associates ciates wo working king rem emotel

• tely

y an and ma maintaini taining ng co cont ntinuity inuity of bu busine ness ss Interactive teractive le lear arning ning/ac /activities tivities th through

• ugh social

cial me media a for th those se shelte eltering ing in pla lace ce

SLIDE 5

Operational

• Tempor

emporarily arily suspended uspended production

• duction at

t th the e ma majority jority of our ur ma manufac nufacturin turing g facilities cilities

• Al

Altered tered opera erating ting hours urs at t our ur ret etail ail stores tores & wa & warehouses rehouses

• Flexed

exed payroll yroll co costs sts th thro rough ugh a co combin mbination ation

• f furl

urloughs

• ughs & s

& salary lary de deferrals errals / r / red eductions uctions

• Red

educed uced di discretionary scretionary spendin ending, g, in incl cluding uding ma marketi keting ng and nd adv dvertising ertising ex expenditures penditures

• Lo

Lowe wered red ca capital ital spending pending plans ans

Mitigating the Impact of COVID-19

Financial

• Ref

efinanced inanced $2.0 0 bil illion lion U. U.S.

• S. rev

evolv

• lving

ing cr cred edit it facility, cility, ex exten tending ding ma maturity turity to to 2025

• Tempor

emporarily arily suspended uspended our ur qu quarterly rterly di divi vidend dend

• Le

Levera eraging ging payroll yroll ta tax x de deferral ferral option tion affor fforded ded un unde der r th the e CA CARES RES Ac Act

5

Taking decisive actions to improve our liquidity and financial flexibility

Op Opera eratio tional nal Fi Financial nancial

SLIDE 6

China Business Conditions

(a) Source: LMC forecast; includes OE and replacement demand

6

Volume recovery is underway

Q4 2020 20 Q4 2019 19

Containment inment Fu Full Rec ecover

• very

Impr provin

• ving

g Dem emand

Expe pected cted Vo Volu lume e Re Reco covery very Curv rve(a)

(a)

Im Impr proving

• ving En

Environment vironment

• Go

Good

• dye

year ar-Pulan Pulandi dian an is is o

• per

erati ating ng wi with th 10 100% 0% of

• f it

its w s wor

• rkfor

force ce an and a d able e to to me meet et cu custo stome mer dem deman and

• Maj

ajor

• r OE

OEMs s hav ave e resu esume med pr d prod

• ducti

uction

• n
• Al

All key ey di distr strib ibuto utors s ar are e up up an and r d run unni ning ng

• >9

>95% 5% of

• f reta

etail il ch chan annel nel reo eopene ened

• OE

OE no nomi mina nati tion

• n proc
• cess

ess retu eturni ning ng to to pre pre-COVID OVID-19 19 lev evel els

SLIDE 7

Tire Production: Status Update as of April 30th

Majority of manufacturing facilities currently idle, but nearly all expected to be operating by end of May

7

≥ 70% Capacity 0 plants < 70% Cap apacity acity 1 pla lants nts Idle le 12 pla lants nts

EMEA Asia Pacific

≥ 70% Capacity 0 plants < 70% Cap apacity acity 10 0 pla lants nts Idle le 3 pla lants nts ≥ 70% Capacity 2 plants < 70% Cap apacity acity 0 pla lants nts Idle le 5 pl plants ants

Americas

7

SLIDE 8

Financ Financial Re ial Review view

SLIDE 9

Financial Review Summary

9

Q2 Q2 Cos Cost t Redu eductions ctions

− Sal alaried aried pa payr yroll

• ll ($6

$65 5 mil illion) lion) − Ma Marketing ting an and d other ther SAG G ($7 $75 5 mil illion) lion)

Cas ash & Liq h & Liquidity uidity Ac Action ions s (2 (202 020 0 Im Impact act)

− Cape apex x ($1 $100 00 mil illion) lion) − Di Divi vidend dend su suspens spension ion ($1 $110 0 mi million) llion) − Tax ax def eferra errals ls ($6 $60 0 mil illion lion U.S., ., Int ntern ernationa ational l TB TBD) D) − Ex Expanded panded U.S. . ABL ABL “borrowing base” (~$350 million)

Str Struct uctur ural al Cos

• st

t Sa Savi vings ngs (v (ver ersu sus s 20 2019 bas 9 basel eline) ine)

− Ge Germ rman an re restruct structuring uring re remain mains on n tr track ack (20 2022 22 sa savings vings of f $6 $60-70 70 mil illion) lion) − Tentativ entative e ag agreement reement to

• cl

close

• se Ga

Gadsden, dsden, AL (2 L (202 021 1 sa savi vings ngs of

• f $1

$130 30 mi million) llion)

SLIDE 10

Pricing relative to raws resilient in economic downturn

Price vs Raw Materials During the Great Recession

(a) Price changes are versus prior year; excludes the benefits of mix. Raw materials changes are versus prior year and exclude raw material cost savings

10 $(4 $(400) 00) $(2 $(200) 00) $- $- $200 $200 $400 $400 Margin gin Impact act ($ Million lions) s)

Pr Pric ice e an and Ra Raw w Ma Materials erials(a

(a)

R Raw aw Mate Material rials Pri Price ce

Q1 2009 2009 Q2 2010 2010

($162) 2) $24 $280 $280 $354 $354 $258 $258 ($20) ($4 ($400) 00) ($2 ($200) 00) $0 $0 $200 $200 $400 $400 Margin gin Impact act ($ Million lions) s)

Net Net Pr Pric ice e vs vs Ra Raw w Ma Materials erials(a)

(a)

Q1 2009 2009 Q2 2010 2010

SLIDE 11

First Quarter 2020

Income Statement

(a) See Segment Operating Income (Loss) and Margin reconciliation in Appendix on page 29 (b) See Adjusted Diluted Earnings (Loss) Per Share reconciliation in Appendix on pages 30 and 31

11 Terms: rms: US$ millions llions (exc xcept ept EPS) PS)

March 31, March 31, 2020 2019 Change Units 31.3 38.0 (18)% Net Sales 3,056 $ 3,598 $ (15)% Gross Margin 16.5% 20.0% (3.5) pts SAG 581 $ 547 $ 6% Segment Operating Income (Loss)(a) (47) $ 190 $ (125)% Segment Operating Margin (a)

• 1.5%

5.3% (6.8) pts Goodyear Net Income (Loss) (619) $ (61) $ Goodyear Net Income (Loss) Per Share Weighted Average Shares Outstanding 234 232 Basic (2.65) $ (0.26) $ Weighted Average Shares Outstanding - Diluted 234 232 Diluted (2.65) $ (0.26) $ Cash Dividends Declared Per Common Share 0.16 $ 0.16 $ Adjusted Diluted Earnings (Loss) Per Share (b) (0.60) $ 0.19 $ Three Months Ended

SLIDE 12

First Quarter 2020

Segment Operating Results

(a) Price/mix excludes the impact of equity interest in TireHub ($2 million headwind year over year) (b) Raw materials variance of $13 million excludes raw material cost saving measures of $17 million, which are included in cost savings (c) Estimated impact of inflation (wages, utilities, energy, transportation and other) (d) Includes the impacts of other tire-related businesses, advertising, R&D and equity interest in TireHub ($2 million headwind year over year)

12 Terms: rms: US$ millions llions Q1 2019 SOI Q1 2020 SOI Volume Unabsorbed Fixed Cost Raw Materials(b) Price/Mix (a) Cost Savings Inflation(c) Currency Other(d) Total Volume Impact ($190) Net P/M vs Raws $13 Net Cost Savings $0 $190 $0 $13 $38 ($120) ($70) ($38) ($3) ($57) ($47)

$50M M

• f period

iod charges rges

Other er Includes udes

($15M) 15M) WIP write te-off

• ff

($10M 10M) ) Gadsde sden n production duction costs sts ($8M) M) Other her tire-rel relate ted d bus usine ness sses es

SLIDE 13

First Quarter 2020

Balance Sheet

(a) Working capital represents accounts receivable and inventories, less accounts payable – trade (b) See Total Debt and Net Debt reconciliation in Appendix on page 32

13 Terms: rms: US$ millions llions

March 31, December 31, March 31, 2020 2019 2019 Cash and cash equivalents 971 $ 908 $ 860 $ Accounts receivable 2,025 $ 1,941 $ 2,446 $ Inventories 2,919 2,851 2,940 Accounts payable - trade (2,645) (2,908) (2,737) Working capital(a) 2,299 $ 1,884 $ 2,649 $ Total debt(b) 6,524 $ 5,663 $ 6,506 $ Net debt(b) 5,553 $ 4,755 $ 5,646 $

SLIDE 14

First Quarter 2020

Liquidity Profile (Pro Forma)

(a) Total liquidity is comprised of $971 million of cash and cash equivalents, as well as $2,627 million of unused availability under various credit agreements, pro forma for the refinancing of the $2.0 billion U.S. revolving credit facility

14

Cash & Equivalents $3.6(a)

Terms: rms: US$ billions lions

Available Credit Lines

SLIDE 15

First Quarter 2020

Maturity Schedule (Pro Forma)

Note: Based on March 31, 2020 balance sheet values, pro forma for the refinancing of the $2.0 billion U.S. revolving credit facility, and excludes notes payable, finance and operating leases and other domestic and foreign debt (a) At March 31, 2020, the amounts available and utilized under the Pan-European securitization program totaled $166 million (€151 million) (b) At March 31, 2020, there were $66 million (€60 million) of borrowings and no letters of credit issued under the €800 million European revolving credit facility (c) At March 31, 2020, and pro forma for refinancing, our borrowing base, and therefore our availability, under the U.S. revolving credit facility was $152 million below the facility’s stated amount of $2.0 billion; At March 31, 2020, there were $420 million of borrowings and $17 million of letters of credit issued

15 Terms: rms: US$ millions llions

SLIDE 16

First Quarter 2020

Free Cash Flow

(a) Other includes goodwill impairment, amortization and write-off of debt issuance costs, net pension curtailments and settlements, net rationalization charges, net (gains) losses on asset sales, operating lease expense and payments, compensation and benefits less pension expense, other current liabilities, and other assets and liabilities

16 Terms: rms: US$ millions llions

Incl cludes des $182M 2M non-cas cash h impairm rmen ent t charge ge

Trailing Twelve Months Ended 2020 2019 March 31, 2020 Net Income (Loss) (617) $ (44) $ (870) $ Depreciation and Amortization 196 193 798 Change in Working Capital (482) (589) 189 Pension Expense 30 34 128 Pension Contributions and Direct Payments (19) (18) (80) Provision for Deferred Income Taxes 235 (23) 581 Rationalization Payments (73) (18) (114) Other(a) 169 101 378 Cash Flow from Operating Activities (GAAP) (561) $ (364) $ 1,010 $ Capital Expenditures (211) (221) (760) Free Cash Flow (non-GAAP) (772) $ (585) $ 250 $ Cash Flow from Investing Activities (GAAP) (257) $ (244) $ (813) $ Cash Flow from Financing Activities (GAAP) 939 $ 645 $ (13) $ Three Months Ended March 31,

SLIDE 17

• Americas’ operating income ahead of prior

year ear through hrough Fe February bruary

• U.

U.S.

• S. consume

sumer r volume lume si significan gnificantly tly affect ffected d by by lower wer industr ustry y dema emand nd

• U.

U.S.

• S. commercial

mercial re repla placement cement sh shipment pments incre reased ased 5%

• Pr

Price ce vs.

• s. ra

raw w material erial costs sts conti ntinue nue to re recover cover

• SO

SOI also so negativ egatively ly imp mpacted acted by by costs sts asso ssocia ciated ted with th su suspendi spending ng pr product duction ion in March rch (~$30 $30 million) lion)

First Quarter 2020 - Segment Results

Americas

17 Terms: US$ millions Units in millions

Fir irst st Qu Quar arter ter

2020 2020 2019 2019 Chang ange Units ts 14.5 16.7 (13.4)% 4)% Net et Sales les $1,673 673 $1,876 876 (10.8)% 8)% Op Oper erating ating Income come (Los

• ss)

s)

• $89

$89 (100.0)% .0)% Margi rgin

• 4.7%

SLIDE 18

• European

ropean consumer nsumer volume lume si signifi gnificantly cantly affect ffected d by by lower

• wer industry

ustry dem emand and

• Commer

mmercial cial re replac placemen ement t volume lume sl slightly ightly po posi sitive tive

• Pr

Price ce vs.

• s. ra

raw w material erial costs sts conti ntinue nue to re recover cover

• Emerging

erging markets rkets volume lume st stable able vs.

• s. pr

prior

• r yea

ear

• SO

SOI I also so negati egatively vely impa pacted cted by by costs sts asso ssocia ciated ted with th su suspendi spending ng pr product duction ion in March rch (~$20 $20 million) lion)

First Quarter 2020 - Segment Results

Europe, Middle East & Africa

18 Terms: US$ millions Units in millions

Fir irst st Qu Quar arter ter

2020 2020 2019 2019 Chang ange Units ts 11.6 14.4 (19.6)% 6)% Net et Sales les $995 $995 $1,221 221 (18.5)% 5)% Op Oper erating ating Income come (Los

• ss)

s) $(53) $(53) $54 $54 (198.1)% .1)% Margi rgin (5.3)% )% 4.4%

SLIDE 19

First Quarter 2020 - Segment Results

Asia Pacific

19 Terms: US$ millions Units in millions

Fir irst st Qu Quar arter ter

2020 2020 2019 2019 Chang ange Units ts 5.2 6.9 (23.9)% 9)% Net et Sales les $388 $388 $501 $501 (22.6)% 6)% Op Oper erating ating Income come $6 $6 $47 $47 (87.2)% 2)% Margi rgin 1.5% 9.4%

• St

Strong rong consumer nsumer re repla placeme cement nt pe performance rformance ex excluding luding Chi hina na through hrough Fe February bruary

• Consumer

nsumer volume lume si significan gnificantly tly affect ffected ed by by lower wer industr ustry y dema emand nd in Chi hina na and d In India dia

• SO

SOI I continued ntinued to be be affected ffected by by unfavor favorable able OE OE pr pricing ing condit nditions ions

SLIDE 20

20

2020 Outlook

• Li

Limit mited ed vi visibi sibility lity int nto

• fu

full ll-year ear indust ndustry y ou

• utlook;

tlook; as assume sume la largest rgest decline decline in n Q2 Q2 (~5 (~50%) 0%)

• Pr

Producti

• duction
• n vol
• lume

ume forecast

• recasted

ed do down wn ~2 ~25 mi 5 million llion un units ts in Q2 n Q2 (u (unabsor nabsorbed bed over erhead head rec recognized

• gnized imm

mmedi ediat ately) ely)

• CO

COVID VID-19 9 impactin pacting g re retai tail, l, ch chemica emical l an and d avi viati ation

• n busi

usinesses nesses (-$1 $150 50 mi million llion in Q2) n Q2)

• Ra

Raw mat w materi erial al pri prices ces are tren are trending ding favora

• rably

bly, , wi with th po potential ential be benef nefit it in 2H n 2H

• Ant

Anticipat icipate e wor

• rki

king ng cap capital tal to be

• be a us

a use e of

• f cash

cash in n Q2 Q2 gi given en expect xpected ed lo lower er ac accounts counts pa payable; able; so sour urce ce of

• f ca

cash sh for FY

• r FY

SLIDE 21

2020 Outlook – Other Financial Assumptions

(a) Excludes one-time charges and benefits from pension settlements and curtailments (b) Excludes one-time items

21

Cur urrent rent Ass ssum umption ption

Raw Mater eria ials $50 50 - $100 00 mil illion ion ben enef efit it, , ex excludi uding g transaction ctional forei eign gn curre rrency cy Inter erest est Expe pense $35 350 0 - $37 375 5 mil illion ion Other er (Income

• me) Expe

pense Fi Financin ing fe g fees es: ~$4 $40 0 mil illion ion Global bal pe pensio ion rel elated ed (ex excluded uded from

• m SOI)(a):

: $75 5 - $95 95 mil illio ion Income

• me Tax

Cash: ~$60 60 mil illion ion(b

(b) ) (~$3

$30 0 mil illion ion for the e rem emain inde der of the e yea ear) Dep eprec ecia iati tion

• n & Am

& Amorti rtiza zati tion

• n

~$7 $775 75 mil illion ion Global bal Pen ensio ion Cash Contri ribution butions $25 25 - $50 0 mil illion ion Worki king g Capi pital Posit itiv ive Capi pital Expe pendi ditures ures No more e than ~$700 700 mil illion ion Res estruc ructuri turing Paymen ents ts $17 175 5 -$20 200 0 mil illion ion Corpora porate te Other er $90 90 - $115 15 mil illion ion

SLIDE 22

Append Appendix ix

SLIDE 23

23

• Larges

rgest t ti tire e compan mpany y in North th Ame merica rica

• $14.7B

.7B in rev evenue enue

• 155M

M un units ts

• 47 ma

manufa ufacturing cturing facilities acilities in 21 countrie untries

• 63K em

empl ployees

• yees

wo worldwide ldwide

Strong Foundation

(a) Based on 2019 results (b) Based on internal estimates

Global leader built on more than 120 years of experience

• 2 wo

world ld-class class innovation novation cen enters ters

• Innovation

novation lab b in San n Fr Francisco ancisco

• 7 ti

tire e pr proving ing gr ground unds

• 5,200

00 pa patent tents

• 1,400

00 pa patent tents s pe pending ding

In Innovation novation(a)

(a)

Po Portfol rtfolio io of

• f

Br Brands ands Pe Perv rvasive asive Di Dist stribution ribution

• Ov

Over er 13,000 000 ret etail ail to touc uch h po point nts(b

(b)

• Concent

ncentrated rated net etwork work of value ue- added dded th third rd-party party distrib stribution ution pa partners tners

• ~200

0 cor

• rporate

porate-

• wn

wned ed wa warehouse ehouse distrib stribution ution facilities cilities

• Lea

eading ding B2 B2C E-comm

• mmerce

erce pl platform atform

Di Diverse verse En End d Ma Markets rkets (a)

74% 26% 26% Replaceme Replacement nt OE OE 60% 60% 20% 20% 4% 4% 3% 3% 13% Consum Consumer er Comm Commercial ercial Retail Retail Chemical Chemical Other Other

In Industry dustry Le Leader ader(a)

(a)

54% 4% 32% 32% 14% Americ Americas EMEA EMEA AP AP

Sales es Unit its

23

SLIDE 24

Modeling Assumptions

Note: Volume, pricing and raw materials modeling assumptions based on Goodyear's public disclosures. Currency, cost inflation, profit margin and overhead absorption figures based on internal estimates.

24

• 1% Δ in U.S. Consumer OE Industry

~102

• 1% Δ in U.S. Consumer Replacement

~$29M''

• +/- 0.01 Δ USD/BRL

(e.g. R$3.79 to R$3.78 is favorable by 0.01) +/-$0.3M

• 1% Δ in U.S. Consumer Replacement Industry

~368

• 1% Δ in U.S. Commercial Replacement

~$10M''

• +/- 0.01 Δ USD/CNY

(e.g. ¥6.75 to ¥6.74 is favorable by 0.01) +/-$0.2M

• 1% Δ in U.S. Commercial OE Industry

~8

• 1% Δ in European Consumer Replacement

~$22M''

• +/- 0.01 Δ USD/EUR

(e.g. €0.87 from €0.86 is favorable by 0.01) +/-$1.5M

• 1% Δ in U.S. Commercial Replacement Industry

~30

• 1% Δ in European Commercial Replacement

~$7M''

• +/- 0.01 Δ USD/TRY

(e.g. ₺5.42 from ₺5.41 is favorable by 0.01) +/-$0.1M

• 1% Δ in European Consumer OE Industry

~117

• 1% Δ in European Consumer Replacement Industry

~358

• 1% Δ in European Commercial OE Industry

~10

• 1% Δ in European Commercial Replacement Industry

~30

• Consumer OE ≥17"

~$15

• 1% Δ in Synthetic Rubber Prices (3 to 4 month lag)

~$7M''

• +/- 0.01 Δ USD/BRL

(e.g. R$3.79 to R$3.78 is favorable by a 0.01) +/- $0.9M

• Consumer Replacement ≥17"

~$28

• 1% Δ in Natural Rubber Prices (4 to 6 month lag)

~$5M''

• +/- 0.01 Δ USD/CNY

(e.g. ¥6.75 to ¥6.74 is favorable by a 0.01) +/- $0.2M

• Consumer OE <17"

~$5

• 1% Δ in Pigment, Chemical, & Oil Prices (3 to 4 month lag)

~$5M''

• +/- 0.01 Δ USD/EUR

(e.g. €0.87 from €0.86 is favorable by a 0.01) +/- $3.2M

• Consumer Replacement <17"

$7 - $9

• 1% Δ in Wire/Other Prices (3 to 4 month lag)

~$4M''

• +/- 0.01 Δ USD/TRY

(e.g. ₺5.42 from ₺5.41 is favorable by a 0.01) +/- $0.2M

• Commercial - U.S. and Europe

$50 - $60

• 1% Δ in Carbon Black (3 to 4 month lag)

~$4M''

• +/- 0.01 Δ EUR/TRY

(e.g. ₺6.25 from ₺6.24 is favorable by a 0.01) +/- $0.2M

• 1% Δ in Fabric Prices (3 to 4 month lag)

~$3M''

• Americas Consumer

$10 -$15

• 1% Δ in Global Inflation

~$55M

• Americas Commercial

$50 - $60

• 1% Δ in Americas Inflation

~$26M

• EMEA Consumer

$8 - $12

• 1% Δ in EMEA Inflation

~$24M

• EMEA Commercial

$30 - $35

Volume Sensitivities

(Impact on Goodyear's Annual Units in 000's)

Approximate Profit Margin Per Tire

(Industry Estimate)

Pricing

(Annual Impact of Effective Pricing Yield)

Tire Raw Material Spend

(Annual Impact)

Translational Foreign Currency

(Annual Impact on FX portion of SOI Walk)

Transactional Foreign Currency

(Annual Impact on Raw Material portion of SOI Walk)

Cost Inflation

(Annual Impact)

Approximate OH Absorption Per Tire

(1 Quarter Lag)

SLIDE 25

Raw Materials

✓ Raw materials are ~44% of tire COGS ✓ ~68% of raw materials are influenced by oil prices

• P&L impact lags spot rates by 1-2 quarters

depending on commodity

✓ ~63% of raw materials are purchased in USD ✓ Customer agreements indexed to raw materials

• OE customers
• Certain large commercial fleets
• OTR customers

25

Glo Global al Ra Raw Mat w Materia erial l Sp Spen end

Feedstoc eedstock ~65 65% % of raw aw ma mate terial rial spend end

FY FY 20 2019 19 ( ($4 $4.4 .4 Bi Billio ion) n)

*Petr troch chem emic ical al based ed

SLIDE 26

Terms: s: US$ million ions

Raw Material Overview

(a) Impact to cost of goods sold versus prior period, excluding the impact of raw material cost saving measures

Full l Year r = $ $725 Full l Year r = $ $266 Full l Year r = $ $278 26

Out Outlo look

• k
• 2020

020 ra raw w material terial co costs ts $50 50 - $100 00 mill llion ion bene enefit, fit, ex excl cluding uding tr transactional ansactional fo fore reign ign cu curr rrency ency

• Tu

Turk rkish ish Li Lira ra and nd Bra razili zilian an Rea Real l dr drivers vers of

• f unfavorable

favorable tr transactional ansactional fo fore reign ign cu curr rrency ency

SLIDE 27

Consumer Replacement Industry Fundamentals: ≥17”

(a) Source: U.S. Tire Manufacturers Association as of March 2020 (b) Source: European Tyre & Rubber Manufacturer's Association (Europe, including Turkey and excluding Russia) + Non-Members internal estimation

U. U.S. Rep eplace lacement ment Industr ustry 20 2020 20 vs

• vs. 20

2019 19 Gr Growth wth Ra Rate te(a)

(a)

Q1 Q1 20 20 USTMA TMA Mem ember ers s (>17”)

• 8%

8% USTMA TMA Members (<17”)

• 19%

19% Tot

• tal

al

• 12%

12% Non

• n-Mem

Members bers

• 2%

2% Tot

• tal

al U.S .S.

• 10%

10% Go Good

• dye

year ar (>17”)

• 20%

20% Q1 Q1 20 20 ET ETRM RMA Mem ember ers s (>17”)

• 6%

6% ET ETRM RMA Members (<17”)

• 17%

17% Tot

• tal

al

• 13%

13% Non

• n-Mem

Members bers

• 7%

7% Tot

• tal

al EU EU + Tur urkey key

• 11%

11% Go Good

• dye

year ar (>17”)

• 16%

16%

Eu Europool ropool & Tu Turkey rkey Re Replaceme placement nt Ind ndust ustry ry 20 2020 20 vs

• vs. 20

2019 19 Gr Growth wth Ra Rate te(b)

(b)

27

SLIDE 28

Use of Non-GAAP Financial Measures

This presentation contains historical non-GAAP financial measures, including Total Segment Operating Income (Loss) and Margin, Free Cash Flow, Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share (EPS), which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP. Total Segment Operating Income (Loss) is the sum of the individual strategic business units’ (SBUs’) Segment Operating Income (Loss) as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating Income (Loss) divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income (Loss) and Margin are useful because they represent the aggregate value of income (loss) created by the company’s SBUs and exclude items not directly related to the SBUs for performance evaluation

• purposes. The most directly comparable U.S. GAAP financial measures to Total Segment Operating Income (Loss) and Margin are Goodyear Net Income

(Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales). Free Cash Flow is the company’s Cash Flows from Operating Activities as determined in accordance with U.S. GAAP, less capital expenditures. Management believes that Free Cash Flow is useful because it represents the cash generating capability of the company’s ongoing operations, after taking into consideration capital expenditures necessary to maintain its business and pursue growth opportunities. The most directly comparable U.S. GAAP financial measure is Cash Flows from Operating Activities. Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted Earnings (Loss) Per Share (EPS) is the company’s Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share (EPS) are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-

• ffs, accelerated depreciation, asset sales and certain other significant items.

It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies.

28

SLIDE 29

Reconciliation for Segment Operating Income (Loss)/Margin

29 Terms: US$ millions

2020 2019 Total Segment Operating Income (Loss) (47) $ 190 $ Goodwill impairment (182)

• Rationalizations

(9) (103) Interest expense (73) (85) Other income (expense) (27) (22) Asset write-offs and accelerated depreciation (4)

• Retained expenses of divested operations

(2) (3) Other (24) (15) Income (Loss) before Income Taxes (368) $ (38) $ United States and Foreign Tax Expense 249 6 Less: Minority Shareholders Net Income 2 17 Goodyear Net Income (Loss) (619) $ (61) $ Net Sales (as reported) $3,056 $3,598 Return on Net Sales (as reported) (20.3)% (1.7)% Total Segment Operating Margin (1.5)% 5.3% Three Months Ended March 31,

SLIDE 30

First Quarter 2020 Significant Items

(After Tax and Minority Interest)

30 Terms: US$ millions, (except EPS)

As Reported Discrete Tax Items Asset Sales Insurance Recovery Transaction Costs Hurricane Effect Brazil Transportation Strike Pension Settlement As Adjusted Net Sales 3,841 $

• $
• $
• $
• $
• $
• $
• $

3,841 $ Cost of Goods Sold 2,949

• (7)
• 2,942

Gross Margin 892

• 7
• 899

SAG 588

• 588

Rationalizations (2)

• (2)

Interest Expense 78

• 78

Other (Income) Expense 45

• 2

2 (11) (8)

• (3)

27 Pre-tax Income 183

• (2)

(2) 11 8 7 3 208 Taxes 19 28 (1) (1) 3

• 2

1 51 Minority Interest 7

• 7

Goodyear Net Income 157 $ (28) $ (1) $ (1) $ 8 $ 8 $ 5 $ 2 $ 150 $ EPS 0.65 $ (0.10) $ (0.01) $ (0.01) $ 0.03 $ 0.03 $ 0.02 $ 0.01 $ 0.62 $

Terms: rms: US$ millions llions (exc xcept ept EPS) PS) The Goodyear Tire & Rubber Company Q1 2020 Significant Items As Reported Discrete Tax Items Goodwill Impairment Rationalizations, Asset Write-offs, and Accelerated Depreciation As Adjusted Net Sales 3,056 $

• $
• $
• $

3,056 $ Cost of Goods Sold 2,552

• (4)

2,548 Gross Margin 504

• 4

508 SAG 581

• 581

Goodwill Impairment 182

• (182)
• Rationalizations

9

• (9)
• Interest Expense

73

• 73

Other (Income) Expense 27

• 27

Pre-tax Income (Loss) (368)

• 182

13 (173) Taxes 249 (290) 4 2 (35) Minority Interest 2

• 2

Goodyear Net Income (Loss) (619) $ 290 $ 178 $ 11 $ (140) $ EPS (2.65) $ 1.24 $ 0.76 $ 0.05 $ (0.60) $

SLIDE 31

First Quarter 2019 Significant Items

(After Tax and Minority Interest)

31 Terms: US$ millions, (except EPS)

As Reported Discrete Tax Items Asset Sales Insurance Recovery Transaction Costs Hurricane Effect Brazil Transportation Strike Pension Settlement As Adjusted Net Sales 3,841 $

• $
• $
• $
• $
• $
• $
• $

3,841 $ Cost of Goods Sold 2,949

• (7)
• 2,942

Gross Margin 892

• 7
• 899

SAG 588

• 588

Rationalizations (2)

• (2)

Interest Expense 78

• 78

Other (Income) Expense 45

• 2

2 (11) (8)

• (3)

27 Pre-tax Income 183

• (2)

(2) 11 8 7 3 208 Taxes 19 28 (1) (1) 3

• 2

1 51 Minority Interest 7

• 7

Goodyear Net Income 157 $ (28) $ (1) $ (1) $ 8 $ 8 $ 5 $ 2 $ 150 $ EPS 0.65 $ (0.10) $ (0.01) $ (0.01) $ 0.03 $ 0.03 $ 0.02 $ 0.01 $ 0.62 $

Terms: US$ millions (except EPS) As Reported Rationalizations, Asset Write-offs, and Accelerated Depreciation Indirect Tax Settlements and Discrete Tax Items Legal Claims Related to Discontinued Operations Asset Sales Net Insurance Recovery from Hurricanes As Adjusted Net Sales 3,598 $

• $
• $
• $
• $
• $

3,598 $ Cost of Goods Sold 2,879

• 2,879

Gross Margin 719

• 719

SAG 547

• 547

Goodwill Impairment

• Rationalizations

103 (103)

• Interest Expense

85

• 85

Other (Income) Expense 22

• (5)

5 3 25 Pre-tax Income (Loss) (38) 103

• 5

(5) (3) 62 Taxes 6 18 (7) 1 (1) (1) 16 Minority Interest 17

• (16)
• 1

Goodyear Net Income (Loss) (61) $ 85 $ 23 $ 4 $ (4) $ (2) $ 45 $ EPS (0.26) $ 0.36 $ 0.10 $ 0.02 $ (0.02) $ (0.01) $ 0.19 $

SLIDE 32

Reconciliation for Total Debt and Net Debt

32 Terms: rms: US$ millions llions

March 31, December 31, March 31, 2020 2019 2019 Long-Term Debt and Finance Leases 5,212 $ 4,753 $ 5,545 $ Notes Payable and Overdrafts 691 348 495 Long-Term Debt and Finance Leases Due Within One Year 621 562 466 Total Debt 6,524 $ 5,663 $ 6,506 $ Less: Cash and Cash Equivalents 971 908 860 Net Debt 5,553 $ 4,755 $ 5,646 $

SLIDE 33