Fi First rst Qua Quarter rter 20 2017 17 Co Conference - PowerPoint PPT Presentation

Fi First rst Qua Quarter rter 20 2017 17 Co Conference nference Ca Call ll April 28, 2017

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: our 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 of 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 our 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 obligation to do so, even if our estimates change. 2

First Quarter Highlights • Segment operating income (SOI) of $385 million (a) Adjusted earnings per share of $0.74 (b) , up 3% • • Positive price / mix versus raw materials Americas earnings of $214 million, 10.9% operating margin • Europe, Middle East and Africa earnings up 23% to $98 million, 7.9% • operating margin Asia Pacific earnings of $73 million, 14.5% operating margin • • Company confirms 2017 segment operating income guidance and 2020 targets (a) See Segment Operating Income and Margin reconciliation in Appendix on page 29. 3 (b) See Adjusted Diluted Earnings Per Share reconciliation in Appendix on pages 27 and 28.

U.S. Consumer OE Trends USA Light Truck & SUV Sales (b) Cumulative Growth (a) (in millions) 12 150 % Indexed to Q4 2014 8 Outperformance driven 140 by light truck/SUV new model ramp-ups 4 130 0 120 2010 2011 2012 2013 2014 2015 2016 110 Strong Q1 2016 comparable 100 Industry I ndustry Goo Goodyear dyear 90 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2014 2015 (a) Source: Rubber Manufacturers Association and internal analysis. For both Goodyear and the industry, these are radial tires only (including radial T-Spares). Bias T-Spares are not 4 included. (b) Source: IHS new vehicle sales.

U.S. Industry Fundamentals: > 17” U. U.S. S. Consumer onsumer Re Replace placement ment Industry ndustry 20 2017 17 vs vs 20 2016 16 Gr Growth wth Ra Rate te (a) (a) Q1 Q1 Soft sell out during first quarter • RMA Mem embers ers (> 17”) 8% 8% Impact of relative timing of our Q1 • RMA Members (<17”) -6% 6% price increase Total tal 1% 1% • Confident in underlying drivers of Non-Memb embers ers 0% 0% demand Total tal U.S. 1% 1% • February miles driven +2% March gasoline demand +1 % Go Goodyear dyear (> 17”) 6% 6% • 5 (a) Source: Rubber Manufacturers Association

EMEA Industry Fundamentals: > 17” Eu Europool ropool & Tu Turkey rkey Re Replaceme placement nt Ind ndust ustry ry 20 2017 17 vs vs 20 2016 16 Gr Grow owth th Ra Rate te (a) (a) Q1 Q1 • Above market growth in > 17” ET ETRMA MA Mem embers ers (> 17”) 12% 12% segment driven by summer ETRMA ET MA Members (<17”) 2% 2% Goodyear volume declines in • Total tal 4% 4% <17” driven by choices in No Non-Memb embers ers 4% 4% summer segment Total tal EU EU + Tur urkey key 4% 4% • “Overall victor in 2017 summer tyre test season” - Tyrepress Go Goodyear dyear (> 17”) 13% 13% 6 (a) Source: European Tyre & Rubber Manufacturer’s Association

First Quarter 2017 Income Statement Three Months Ended Terms: US$ millions (except EPS) March 31, March 31, 2017 2016 Change Units 40.0 41.5 (3.5)% Net Sales $ 3,699 $ 3,691 0% Gross Margin 25.3% 26.8% (1.5) pts SAG $ 579 $ 615 (6)% Segment Operating Income (a) $ 385 $ 419 (8)% Segment Operating Margin (a) 10.4% 11.4% (1.0) pts Goodyear Net Income $ 166 $ 184 Goodyear Net Income Per Share Weighted Average Shares Outstanding 252 267 Basic $ 0.66 $ 0.69 Weighted Average Shares Outstanding - Diluted 256 271 Diluted $ 0.65 $ 0.68 Cash Dividends Declared Per Common Share $ 0.10 $ 0.07 Adjusted Diluted Earnings Per Share (b) $ 0.74 $ 0.72 (a) See Segment Operating Income and Margin reconciliation in Appendix on page 27. 7 (b) See Adjusted Diluted Earnings Per Share reconciliation in Appendix on pages 25 and 26.

First Quarter 2017 Segment Operating Results Terms: US$ millions ($32) $71 ($34) $419 ($4) ($37) ($3) $385 Q1 $47 ($42) Inflation (b) Currency Other (c) Volume Q1 2016 2017 SOI Cost Unabsorbed SOI Savings Fixed Cost Raw Price/Mix Materials (a) ($71) $5 $39 Total Volume Impact Net P/M vs Raws Net Cost Savings (a) Raw material variance of ($42) million excludes raw material cost saving measures of $30 million, which are included in Cost Savings. 8 (b) Estimated impact of inflation (wages, utilities, energy, transportation and other). (c) Includes the favorable impact of incentive compensation and advertising.

First Quarter 2017 Balance Sheet Terms: US$ millions March 31, December 31, March 31, 2017 2016 2016 Cash and Cash equivalents $ 961 $ 1,132 $ 1,079 Accounts receivable 2,270 1,769 2,482 Inventories 2,845 2,627 2,636 Accounts payable - trade (2,631) (2,589) (2,653) Working capital (a) $ 2,484 $ 1,807 $ 2,465 Total debt (b) $ 5,933 $ 5,479 $ 6,075 Net debt (b) $ 4,972 $ 4,347 $ 4,996 (a) Working capital represents accounts receivable and inventories, less accounts payable – trade. 9 (b) See Total Debt and Net Debt reconciliation in Appendix on page 30.

First Quarter 2017 Free Cash Flow Terms: US$ millions Three Months Ended Trailing Twelve March 31, Months Ended 2017 2016 March 31, 2017 Net Income $ 169 $ 189 $ 1,264 Depreciation and Amortization 185 174 738 Change in Working Capital (596) (611) (102) Pension Expense 22 18 75 Pension Contributions and Direct Payments (25) (25) (89) Provision for Deferred Income Taxes 40 46 (235) Rationalization Payments (18) (24) (80) Other (a) (63) (139) 28 Cash Flow from Operating Activities (GAAP) $ (286) $ (372) $ 1,599 Capital Expenditures (271) (253) (1,014) Free Cash Flow (non-GAAP) $ (557) $ (625) $ 585 $ 287 $ - (a) Other includes amortization and write-off of debt issuance costs, net pension curtailments and settlements, net rationalization charges, net (gains) losses on asset sales, compensation 10 and benefits less pension expense, other current liabilities, and other assets and liabilities.

First Quarter 2017 - Segment Results Americas Terms: US$ millions Units in millions Fir irst st Qu Quar arter ter • Volume decline driven by U.S. 2017 2017 2016 2016 Chang ange consumer OE Units ts 17.2 18.0 (4.6%) %) U.S. commercial truck volume • relatively stable Net et Sales les $1,958 958 $1,951 951 0.4% Brazil strengthening; volume up 7% • Op Oper erating ating $214 $214 $260 $260 (17.7%) 7%) • Operating income decline driven by Income come under-absorbed overhead, volume Margi rgin 10.9% 9% 13.3% 3% 11

First Quarter 2017 - Segment Results Europe, Middle East & Africa Terms: US$ millions Units in millions Fir irst st Qu Quar arter ter • Increased operating income driven by positive price/mix and cost savings 2017 2017 2016 2016 Chang ange • Continued growth in consumer Units ts 15.5 16.2 (3.8%) %) replacement > 17”, driven by summer Net et Sales les $1,239 239 $1,251 251 (1.0%) %) Consumer replacement down 6% • driven by choices made in <17” Op Oper erating ating $98 $98 $80 $80 22.5% 5% segment Income come • Share growth in commercial Margi rgin 7.9% 6.4% replacement 12

First Quarter 2017 - Segment Results Asia Pacific Terms: US$ millions Units in millions Fir irst st Qu Quar arter ter • Consumer volume flat as 2017 2017 2016 2016 Chang ange replacement growth is offset by decline in OE Units ts 7.3 7.3 (0.2%) %) • Higher OE comparable related to Net et Sales les $502 $502 $489 $489 2.7% China tax incentive • Robust double digit growth in Op Oper erating ating $73 $73 $79 $79 (7.6%) %) Income come China replacement Margi rgin 14.5% 5% 16.2% 2% • Increased order activity in OTR 13