Company Update Fourth Quarter and Full Year 2019 February 24, 2020 - PowerPoint PPT Presentation

Company Update Fourth Quarter and Full Year 2019 February 24, 2020

Safe Harbor Statement This presentation contains what the company believes are forward-looking statements related to future financial results and business operations for Cooper Tire & Rubber Company. Actual results may differ materially from current management forecasts and projections as a result of factors over which the company may have limited or no control. Information on certain of these risk factors and additional information on forward-looking statements are included in the company’s reports on file with the Securities and Exchange Commission and set forth at the end of this presentation. 2

Available Information You can find Cooper Tire on the web at coopertire.com. Our company webcasts earnings calls and presentations from certain events that we participate in or host on the investor relations portion of our website (http://coopertire.com/investors.aspx). In addition, we also make available a variety of other information for investors on the site. Our goal is to maintain the investor relations portion of the website as a portal through which investors can easily find or navigate to pertinent information about Cooper Tire, including: our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8 ‑ K, and • any amendments to those reports, as soon as reasonably practicable after we electronically file that material or furnish it to the Securities and Exchange Commission (“SEC”); • information on our business strategies, financial results and selected key performance indicators; • announcements of our participation at investor conferences and other events; • press releases on quarterly earnings, product and service announcements and legal developments; • corporate governance information; and • other news and announcements that we may post from time to time that investors may find relevant. The content of our website is not intended to be incorporated by reference into this presentation or in any report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only. 3

Three Months Ended December 31, 2019 Financial Performance Highlights (millions USD, except EPS) Change from Prior Net Sales by Segment Q4 2019 Q4 2018 Year Americas Tire $ 655 $ 664 (1.4%) International Tire 119 149 (20.1%) Eliminations (24) (43) 45.0% Total Company $ 750 $ 770 (2.6%) Operating Profit (Loss) by Segment OP % OP % Americas Tire $ 84 12.9 $ 70 10.6 $ 14 International Tire (6) (5.0) (33) (22.2) 27 Unallocated Corporate Charges (15) (13) (2) Eliminations — 1 (1) Total Company $ 64 8.5 $ 25 3.2 $ 39 Earnings (loss) per share, diluted $ 1.02 $ (0.01) $ 1.03 Cash and cash equivalents $ 391 $ 356 $ 35 Amounts are unaudited and may not add due to rounding. 4

Twelve Months Ended December 31, 2019 Financial Performance Highlights (millions USD, except EPS) Change Full Year Full Year from Prior Net Sales by Segment 2019 2018 Year Americas Tire $ 2,354 $ 2,363 (0.4)% International Tire 534 641 (16.7)% Eliminations (135) (196) 30.9 % Total Company $ 2,753 $ 2,808 (2.0)% Operating Profit (Loss) by Segment OP % OP % Americas Tire $ 238 10.1 $ 230 9.7 $ 8 International Tire (13) (2.5) (14) (2.2) 1 Unallocated Corporate Charges (50) (52) 2 Eliminations — 1 (1) Total Company $ 174 6.3 $ 165 5.9 $ 9 Earnings per share, diluted $ 1.91 $ 1.51 $ 0.40 Cash and cash equivalents $ 391 $ 356 $ 35 Amounts may not add due to rounding. 5

Operating Profit Walk Total Company 2018 to 2019 ($ millions) $9 $350 52 $300 64 (32) $250 (27) 34 (26) $200 174 165 (23) (9) (6) $150 (18) $116 $100 Net Price/Mix vs. Raw Materials $50 $0 t e g x e g y * A r t i i * e f g n i m n t f & M i g o h o r l i * i t u i n G r a d s k r t r / b e u O P e i P h u f c l o r S f n a c t C l a u i V c g c i g r i , b L t a r a n x s n t P c w T f i n e f t i u u t f c t a e a a w i r , n u r r m s r t r a a d s e e D e l T r a M e p N o p i i y R O a w r O r e t P p e u e h 8 m t 9 N D a t 1 1 M I 0 f 0 l o 2 l 2 i w w a d R o o G Amounts are unaudited and may not add due to rounding. * Truck and Bus Radial (TBR) tires imported into the U.S. from China became subject to 42.16% of AD/CVD tariffs implemented on February 15, 2019. All tires, as well as raw materials and tire-manufacturing equipment, imported into the U.S. from China became subject to 10% tariffs pursuant to Section 301 of the Trade Act of 1974 in September 2018. This rate was increased to 25% on May 10, 2019. In Q4 2019, the Company recorded $20 million of benefit from duty drawback claims filed for the period 2015-2019 under the Modernized Drawback Final Rule. ** Restructuring charges related primarily to Cooper Tire Europe's decision to cease light vehicle tire production at its U.K. facility. 6

Operating Profit Walk Americas Tire Operations 2018 to 2019 ($ millions) $8 63 $350 50 $300 (32) (23) 238 230 $250 (19) (11) (7) (13) $200 $150 $113 Net Price/Mix vs. Raw $100 Materials $50 $0 t g x y e A g r t i i e f n i t m n f & M i o h o l i * i t i u G r d s k r t r / b e u O P e P u f c l o S f n a c t l a g i V c g c i r i L , b a r a n x s n P w T f i e f t i u t f c t a a a w i , u n r r s r r a d a e e D e l T a M p N o p i y O w r O r e t P e u e t h 8 9 N D a t 1 1 M 0 f 0 o 2 2 w a R Amounts are unaudited and may not add due to rounding. * Truck and Bus Radial (TBR) tires imported into the U.S. from China became subject to 42.16% of AD/CVD tariffs implemented on February 15, 2019. All tires, as well as raw materials and tire-manufacturing equipment, imported into the U.S. from China became subject to 10% tariffs pursuant to Section 301 of the Trade Act of 1974 in September 2018. This rate was increased to 25% on May 10, 2019. In Q4 2019, the Company recorded $20 million of benefit from duty drawback claims filed for the period 2015-2019 under the Modernized Drawback Final Rule. 7

Operating Profit Walk International Tire Operations 2018 to 2019 ($ millions) $1 $50 15 2 34 $25 (8) (18) $0 $7 Net Price/Mix vs. Raw (11) Materials (9) (4) (13) (14) -$25 s e s x A g e * r s g e s g l i n m s & a M n h o r o i i G u a r t L r / i L e u r O h e l S o u c t g C t g c V a t i n c n r a M t P i u i f t n t u r a a e w t n r s r m e a e a e p R p r M R i O O a p 8 9 m 1 1 0 0 I 2 2 l l i w d o o G Amounts are unaudited and may not add due to rounding. * Restructuring charges related primarily to Cooper Tire Europe's decision to cease light vehicle tire production at its U.K. facility. 8

Operating Profit Walk Total Company Q4 2018 to Q4 2019 ($ millions) $39 10 $100 1 24 $75 64 (19) 34 (3) (3) (1) (4) $50 $25 25 Net Price/Mix vs. $25 Raw Materials $0 t e g x g e y g r t i i e f g n i n m t n f M i o h o r l i * i i t u i r a d s k r r t r / b e u u O P e P h u f c l o f n a c t t C l a i c V c g c i g r i , b L a r a u n x s n t P w T f r i n e f t i u t f c t t a e a a w i s , n u r r m s r e r a a d e e D e l R T r a M p N o p i i y O a w r O r e t P p e u e h 8 m t 9 N D a t 1 1 M I 0 f 0 l o 2 l 2 i w w a d R o o G Amounts are unaudited and may not add due to rounding. * Truck and Bus Radial (TBR) tires imported into the U.S. from China became subject to 42.16% of AD/CVD tariffs implemented on February 15, 2019. All tires, as well as raw materials and tire-manufacturing equipment, imported into the U.S. from China became subject to 10% tariffs pursuant to Section 301 of the Trade Act of 1974 in September 2018. This rate was increased to 25% on May 10, 2019. In Q4 2019, the Company recorded $20 million of benefit from duty drawback claims filed for the period 2015-2019 under the Modernized Drawback Final Rule. 9