The Goodyear Tire & Rubber Company · NASDAQ:GT
The Goodyear Tire & Rubber — Q1 2024 Earnings Presentation
31 slides from The Goodyear Tire & Rubber's earnings presentation, Jun 2, 2024
Slide 1: Goodyear Earnings Release
GOODZYEAR EARNINGS RELEASE
Slide 2: Quarter Highlights
Quarter Highlights
Slide 3: Q1 2024 key metrics
2»? Tire Units Net Sales Segment Operating Income 40.4 | $4,537) $247 SOI Margin Free Cash Flow Adjusted EPS 5.4% | ($769) | $0.10 Append GOODFYEAR 012024 - 3
Slide 4: Net Sales, Segment Operating Income and SOI Margin
Net Sales Segment Operating Income SO! Margin S179 6.9% AMERICAS _ WH , O1 ©O (oe) EMEA qi — WN i ~ S8 0.6% : Gg $602 $60 | 10.0% Appendix GOODFYEAR 012024 - 4
Slide 5: Goodyear Forward transformation plan
Se a >>) Goodyear Forward is a transformation plan designed to deliver significant margin expansion and reduce leverage to drive substantial shareholder value creation. During 2023, we began laying the foundation to drive the execution of that plan. We expect this program to benefit segment operatin
Slide 6: Goodyear Forward
GOODYEAR FORWARD eS Total Actions MY 2 $375 actpriicn I -$15 Purchasing o - $135 SAG | ~$75 W supply Chain and R&O | -$40 Margin Expansion important Disclosures GOODFYEAR 012024 - 6
Slide 7: Financial Results
FINANCIAL RESULTS
Slide 8: Three Months Ended March 31
Three Months Ended March 31. 2024 Tire Units 40.4 41.8 -3.5% Net Sales S$ 4537 S$ 4,941 -8.2% Gross Margin 18.1% 18.1% 3.0 pts SAG $ 696 S 664 4.8% Segment Operating Income $ 247 $ 125 97.6% Segment Operating Margin 54% 25% 29 pts Goodyear Net Loss $ (57) $ (101) 43.6% Goodyear Net Income (Loss)Per
Slide 9: First Quarter 2024 versus 2023
FIRST QUARTER 2024 VERSUS 2023 a = - s 247 $261 eo Other Other (bh ti + = Calculated Goodyear. Inflation Costs Forward (cpi)' $125 ($28) = pe Volume Unabsorbed Fixed Cost Price/Mix Raw (a Materials \ nt ] Lo ($26) $127 ($33) Total Volume Impact Net P/M vs Raws Inflation and Other Costs SBU Results O
Slide 10: Debt and free cash flow
SS ee >>) Total Debt Cash Flow from Operating Activities (GAAP) sacl $9,011 ($451) ($775) A Net Debt Free Cash Flow (non-GAAP) $7,373 | $7,929 ($769) ($1,066) Vv A Outlook Quarter Highlights Financial Results SBU Results mportant Disclosures Appendix GOODFYEAR 012024 - 10
Slide 11: SBU Results
SBU RESULTS
Slide 12: Americas industry results
« U.S. consumer replacement industry growth of 8% driven by non-member imports; sell out about flat « U.S. commercial replacement industry growth of 23% driven by non-member imports; fleet activity remains weak ‘SBU Results
Slide 13: EMEA industry results
« EMEA consumer replacement industry growth of 1.5% driven by non-member imports *« Consumer replacement channel inventory down 10% « EMEA commercial truck replacement industry down 3%; fleet activity remains weak
Slide 14: Asia Pacific industry results
¢ Asia consumer OE industry growth of 2% * Consumer replacement industry down 1% * Goodyear volume growth driven by new OE fitment wins in China
Slide 15: Outlook
QUTLOOK GOODFYEAR
Slide 16: Full Year 2024 outlook
Se ))) 2202 FULL YEAR 20200 Global unit volumes flat (excluding Tupelo recovery) Global consumer replacement unit volumes expected to be below industry (driven by 01 results) VOLUME ~$30 million headwind in unabsorbed overhead Global consumer OE unit volumes expected to be above driven by lower 01 p
Slide 17: Full Year 2024 vs prior outlook
DS a >>) FULL YEAR 2024 __ Vs PRIOR OUTLOOK Full Year Unchanged $ illion to $175 millio scesuaiiaole : $150 million to $175 million 02 at ~$50 million Goodyear Forward: ~ $100 million comprised of advisory, legal and zs : Unchanged consulting fees and costs associated with planned asset sales 9 $520
Slide 18: Industry Assumptions
INDUSTRY ASSUMPTIONS 2»?
Slide 19: Important Disclosure
IMPORTANT DISCLOSURE
Slide 20: Forward-Looking Statements
ee >>) 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 e
Slide 21: Use of Non-GAAP Financial Measures
>>) USE OF NON-GAAP FINANCIAL MEASURES (Unaudited) This presentation presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Free Cash Flow, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) which are important financial measures for the comp
Slide 22: Appendix
APPENDIX
Slide 23: Total Segment Operating Income reconciliation
Total Segment Operating Income Less: Rationalizations Interest Expense Other (Income) Expense Three Months Ended March 31, 2024 $247 Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, Net Corporate Incentive Compensation Plans Retained Expenses of Divested Operations Other Loss
Slide 24: Working capital and net debt
eS Sea eee ))) March 31, December 31, March 31, 2024 2023 2023 Accounts Receivable $ 3,033 $ 2,731 $ 3.244 Inventories 3,831 3,698 4,553 Accounts Payable — Trade (4,223) (4,326) (4,452) Working Capital **) $ 2,641 $ 2.103 $ 3,345 Notes Payable and Overdrafts $ 388 $ 344 $ 517 Long Term Debt and Fina
Slide 25: Debt maturities as of March 31, 2024
Loe SCAND ART TIESSSIEELLE DD AS OF MARCH 31, 2024 $2,120" $165" $872 +1 $801 $1,530 $986 || $1,600 2024 2025 2026 2027 2028 2029 2030 22031 MM Funded Debt Undrewn Credit Lines Quarter Highlights Financial Results Outlook important Disclosures GOODFYEAR 012024 - 25
Slide 26: Free cash flow reconciliation
Three Months Ended March 31, 2024 2024 Trailing Twelve Months Ended 2023 March 31, 2024 Net Income (Loss) $ (58) $ (39) $ (646) Depreciation and Amortization 284 251 1,034 Change in Working Capital (539) (859) 619 Pension Expense 32 32 122 Pension Contributions and Direct Payments (16) (20) (50) Goo
Slide 27: Reconciliation of Adjusted Net Income, Q1 2024
TABLE E: RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE FIRST QUARTER 2024 Rationalizations, Asset Write-offs, Goodyear Debica Asset and TEC JEL As 2 Settlements Settlement As Accelerated Forward Fire Other . : Reported seks and Discrete Charges Adjusted Depreci
Slide 28: Reconciliation of Adjusted Net Income, Q1 2023
TABLE E: RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE FIRST QUARTER 2023 Rationalizations, Foreign Currency As Asset Write-offs, and - lati . As Reported Accelerated é ee ato Buln Ree Adjusted ee Adjustment Write-Off Depreciation Net Sales $ 4941 §$ - $ - $ -
Slide 29: Historical Key Metrics: income statement
| TABLEF:HISTORICALKEYMETRICS INCOME STATEMENT GOODYEAR TIRE UNITS i AMERICAS 22.2 23.3 24.1 25.4 95.0 20.5 20.8 22.9 23.1 87.3 19.0 EMEA 4.5 14.5 13.3 12.8 55.1! 13.2 1.8 12.5 12.4 49.9 12.5 ASIA PACIFIC 8.3 7.8 9.3 9.0 34.4 i 8.1 8.2 9.9 9.9 36.1 8.9 TOTAL COMPANY 45.0 45.6 46.7 47.2 184.5 i 41.8
Slide 30: Historical Key Metrics: balance sheet and cash flow
TABLE F: HISTORICAL KEY METRICS BALANCE SHEET AND CASH FLOW 2022 2023 2024 Three Three Three Three Twelve Three Three Three Three Twelve Three Months Months Months Months Months Months Months Months Months Months Months Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Jun. 30, Sept.
Slide 31: Footnotes and assumptions
ee ) >) 1 Segment Operating Income (SO!) results first quarter 2024 versus 2023: (a) Raw materials variance excludes raw material cost saving measures; (b) Goodyear Forward includes cost actions and margin expansion; (c) Estimated impact of general inflation (wages, utilities, energy, transportation
The Goodyear Tire & Rubber Company — Q1 2024 Earnings Presentation on 6ix