Deutsche Bank Global Auto Industry Conference - Goodyear

Deutsche Bank Global Auto Industry Conference
January 10, 2012

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 realize anticipated savings and operational benefits from our cost reduction initiatives
or to implement successfully other strategic initiatives; increases in the prices paid for raw materials and
energy; pension plan funding obligations; actions and initiatives taken by both current and potential
competitors; 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; a labor strike, work stoppage or other similar event; 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

Agenda
• Company Overview
• Recent Business Trends
• Strategy Overview
3

.
Company Overview
Goodyear tires are sold
in two distinct tire markets...
(% of 2010 Units of 181 million)
Replacement Market
74%
OE Market
26%
OE ~15% of 2010 Revenue
…available in a diverse
selection of products...
(% of 2010 Revenue of $18.8 Billion)
Consumer
55%
Chemical
6%
19%
Retail
9%
Other
11%
Commercial
Includes:
OTR, Race
and
Motorcycle
...and stretch around the
world
(% of 2010 Revenue of $18.8 Billion)
North
America
44%
Europe, Middle
East & Africa
34%
Asia Pacific
11%
Goodyear Is a Global Tire Industry Leader with Powerful Brands and
Broad Product Reach
Latin
America
11%
4

Recent Business Trends
• Price/mix versus raw material
cost increase
• Raw material cost trends
• Recent spot prices indicate that Q4
will be “peak” costs
• Branded share performance
• Working capital realization
+ -
• Volume softness across all
regions
• European “green” winter
• Q4 cost savings < inflation
• Union City closure transition
inefficiencies
• Continued issues at Amiens,
France factory
• North American third party
chemical income impacted by
declining commodity prices
• Thailand flood impact
5

Strategy Overview

Path to Segment Operating Income Target
($ in millions)
$917
Int’l
$899
Int’l
NAT
$1,600
Int’l
$1,150
NAT
$450
2010 2011E
2013 Target
2011 Marks Strong Progress Toward 2013 Target
7

Strategy Roadmap
Key Strategies
1. North America: Profitability
2. Asia: Winning in China
3. EMEA/LAT: Continued
Success
� Executing Plan
� Innovation Leader
� Profit Recovery
� Creating Sustainable Value
� First with Customers
� Innovation Leader
� Leader in Targeted Segments
Where We Are (2010)
� NAT Profitable
� Investing to Grow
� Balance Sheet Improving
Industry
MegaTrends
Our Destination (2013+)
Key How To’s
1. Target Profitable Segments
2. Operational Excellence
3. Enabling Investments
4. Cash is King
� Competitively Advantaged
� Profitable thru Economic Cycle
� Cash Flow Positive
� Investment Grade
8

Innovation Leadership
Where We are Today:
• Market-back product
development
• Leadership
� Speed to market
• Impressive third party
recognition globally
Industry Leading Tires
Eagle F1
Ultragrip 7+
SP Sport Fast
Response
Fuel Max
Industry-Leading New
Products Engine
G316 LHT with
DuraSeal
Award Winning Tires
Efficient Grip
Assurance
9

7 Industry MegaTrends
Significant GDP growth in
emerging markets will
provide impressive tire
market growth
Developed markets’ size, mix
and drive for innovation
provide profitable market
segments
High Value Added technology
will continue to migrate into
mid-tier cars/tires
7
Industry
MegaTrends
Unlikely to experience gamechangers….
evolutionary, not
revolutionary
“Green” (fuel efficiency) will
be a growing and permanent
global theme
Tire performance labeling will
become an industry standard
Internet and information
technology will alter enduser
buying behaviors
MegaTrends Define Industry Growth and Profit Opportunities for
Next Several Years
10

2011 Strategy Execution
Key How To’s 2011 Progress
Target Profitable Segments
Operational Excellence
Enabling Investments
Cash is King
• Strong price/mix realization
• Consumer response to new product launches
• Branded share improvement
• Continued investment in increased HVA capacity
• Reduced high-cost footprint (Union City closure)
• Improving service levels
• Produced first tires in Pulandian, China
facility…continue production ramp-up
• Continued ramp-up of Chile expansion
• Launched 63” OTR tire production
• Multi-year improvement in working capital % to
sales
• Enhanced liquidity and debt maturity profile
11

Strategy Roadmap
Path to $1.6 billion Target
Key Drivers Risk Factors
• NAT � ~5% SOI margin
• International segment operating
income returning to historical levels
• Moderate global industry growth,
including:
– Emerging markets growth
– Commercial industry returns to
pre-recession levels
• Goodyear volume growth 3 – 5%
annually
• Price/mix supported by innovation
• Achieve cost savings and unabsorbed
fixed cost recovery
• Deliver on high-return investments
• Make required pension contributions
• Economic environment
– High capacity utilization
reduces risk
• Raw materials
– Timing of cost increases
– Availability of select materials
• Higher wages and general inflation
– Further cost savings may be
required
• Pension
– Portfolio returns
– Discount rate
Execution Required, Risks Need to be Managed
12

Summary
• Strong results for 2011 – on path to 2013 targets
• Recent trends more challenging
• Tire industry long-term trends remain attractive
• Continue to focus on key strategies
13

Appendix

Segment Results
(in millions)
North American Tire
Latin American Tire
Europe, Middle East and Africa Tire
Nine Months Ended
Nine Months Ended
September 30,
September 30,
2007 2008 2009 2010 2010 2011 2007 2008 2009 2010 2010 2011
Units 81.3 71.1 62.7 66.7 49.8 49.4 Units 79.6 73.6 66.0 72.0 54.3 57.4
Net Sales $8,862 $8,255 $6,977 $8,205 $6,004 $7,275 Net Sales $7,217 $7,316 $5,801 $6,407 $4,680 $6,128
Operating
Income (Loss) $139 ($156) ($305) $18 $7 $255
Operating
Income $582 $425 $166 $319 $259 $539
Margin 1.6% -1.9% -4.4% 0.2% 0.1% 3.5% Margin 8.1% 5.8% 2.9% 5.0% 5.5% 8.8%
Asia Pacific Tire
Nine Months Ended Nine Months Ended
September 30,
September 30,
2007 2008 2009 2010 2010 2011 2007 2008 2009 2010 2010 2011
Units 21.8 20.0 19.1 20.7 15.5 15.0 Units 19.0 19.8 19.2 21.4 15.9 15.6
Net Sales $1,872 $2,088 $1,814 $2,158 $1,576 $1,876 Net Sales $1,693 $1,829 $1,709 $2,062 $1,500 $1,805
Operating
Income $359 $367 $301 $330 $237 $183
Operating
Income $150 $168 $210 $250 $190 $195
Margin 19.2% 17.6% 16.6% 15.3% 15.0% 9.8% Margin 8.9% 9.2% 12.3% 12.1% 12.7% 10.8%
15

Third Quarter 2011
Segment Results
(In millions)
North American Tire
Europe, Middle East and Africa Tire
2011 2010 Change 2011 2010 Change
Units 16.6 18.0 (7.6%) Units 20.7 19.1 8.3%
Net Sales $2,557 $2,176 17.5% Net Sales $2,226 $1,696 31.3%
Operating Income $78 $5 Operating Income $260 $77
Margin 3.1% 0.2% Margin 11.7% 4.5%
Latin American Tire
Asia Pacific Tire
2011 2010 Change 2011 2010 Change
Units 5.1 5.2 (1.9%) Units 5.3 5.4 (2.1%)
Net Sales $651 $569 14.4% Net Sales $628 $521 20.5%
Operating Income $62 $95 (34.7%) Operating Income $63 $57 10.5%
Margin 9.5% 16.7% Margin 10.0% 10.9%
16

Full-Year 2010
Tire Unit & Sales Summary
2010 Sales = $18,832 Million
Consumer
55%
Chemical 6%
Commercial
19%
Retail
9%
Other
11%
Includes:
OTR, Race
and
Motorcycle
Full Year Unit/Sales Mix (millions)
Consumer
2010 2009 % Change
Units 164.4 152.9 8%
Sales $10,342 $9,373 10%
Commercial
Units 14.0 12.2 15%
Sales $3,501 $2,801 25%
17

Nine Months Ending September 30, 2011
Tire Unit & Sales Summary
(in millions)
2011 Nine Month Sales = $17,084
Consumer
53%
Chemical 7%
Commercial
Retail
8%
20%
Other
12%
Includes:
OTR, Race
and
Motorcycle
First Nine Months: Unit/Sales Mix
Consumer
2011 2010 % Change
Units 124.4 123.3 0.9%
Sales $9,056 $7,587 19.4%
Commercial
Units 11.2 10.3 8.2%
Sales $3,440 $2,536 35.6%
18

Price/Mix Improvements
Price/Mix vs. Raw Materials (a)
($ in millions)
$746
$829
$639
$195
$942
$712
$207
($115)
$689
$549
$1,654
$1,239
2006 2007 2008 2009 2010 September
YTD 2011
Price/Mix Raw Materials
(a) Reflects impact on Segment Operating Income. Raw Materials include the impact of raw material cost savings measures.
(b) Raw material variance of $549 million includes raw material cost savings measures of $136 million.
(c) Raw material variance of $1,239 million includes raw material cost savings measures of $128 million.
(b)
(c)
19

Cash Flow
($ in millions)
a) Includes amortization and write-off of debt issuance costs.
b) Working capital represents total changes in accounts receivable, inventories and accounts payable – trade.
Nine Months Ended
September 30, September 30,
2011
2010
Net Income $391 $2
Depreciation and amortization (a)
Working capital (b)
576 509
(2,138) (806)
Pension contributions and direct payments (221) (248)
Venezuela currency devaluation -
Other (including compensation and benefits) 420 516
Total Cash Flows from Operating Activities ($972) $83
Memo:
Capital Expenditures ($806) ($618)
Effect of exchange rates on cash and cash equivalents ($67) ($162)
Asset Dispositions $68 $20
110
20

Building the Right Production Capability
Lawton Modernization
North America Asia
CapEx (2010-2013): ~$150 million
Benefit: Convert 5 mil LVA consumer tires to HVA
Completing Fayetteville Modernization
CapEx (2008-2013): ~$75 million
Benefit: Convert 3 mil LVA consumer tires to HVA
EMEA
Equipment Upgrades (multi-plant)
CapEx (2011-2013): $200+ million
Benefit: Lead performance in tire labeling
Completing Riesa (Germany) Expansion
CapEx (2009-2013): ~$100 million
Benefit: Add 2 mil tires/year consumer HVA
Completing Pulandian (China) Plant
CapEx (2008-2013): ~$700 million net of
incentives
Benefit: Add 5 mil tires/year consumer HVA
(to total of 10.5 mil tires/year in China)
1 mil tires/year commercial truck
Latin America
Completing Chile Expansion
CapEx (2008-2013): ~$500 million
Benefit: Add 7 mil tires/year consumer HVA
Completing Brazil Expansion
CapEx (2011-2013): $200+ million
Benefit: Add 2mil tires/year consumer HVA
Investments for HVA Spread Across Geographies, Capacity Expansion
Concentrated in Asia and Latin America
21

Working Capital Performance
20%
10%
0%
Quarterly Working Capital as a Percent
to Annualized Sales (a)
Q1 Q2 Q3 Q4
2008
2009
2010
2011
a) Working capital represents quarter-end balances for accounts receivable and inventories, less accounts payable – trade;
Annualized sales calculated on a trailing 4 quarter basis
Significant Progress in Working Capital Efficiency
22

Liquidity Profile
($ in billions)
Pan European
Securitization (b)
Available
Credit Lines (c)
Cash &
Equivalents (d)
Liquidity Profile
$3.9 (a)
$0.1
$1.7
$2.1
September 30, 2011
$1 billion
required for
operations
(a) Total liquidity comprised of $2,126 million cash and cash equivalents, $1,692 million of unused availability under various credit agreements, and the
additional $67 million committed under the Pan-European securitization program.
(b) Committed Pan-European securitization program of $604 million (€450 million) subject to available receivables. As of September 30, 2011,
$537 million (€400 million) available and fully utilized.
(c) Includes $200 million of financing related to relocation and expansion of manufacturing facility in China.
(d) Includes $262 million of cash in Venezuela denominated in bolivares fuertes.
23

Maturity Schedule
($ in millions)
Undrawn
Credit Lines
$1,500 (a)
$200
Funded Debt
$1,200
$604 (b)
$537
$1,167 (c)
$1,154 (d)
2011 2012 2013 2014 2015 2016 2017 2018
Note: Based on balance sheet values and excludes notes payable, capital leases and other domestic and foreign debt.
Detail on all outstanding debt as of September 30, 2011 in Appendix on page 34.
(a) At September 30, 2011, $415 million of letters of credit were issued under the U.S. revolving credit facility.
(b) At September 30, 2011, $537 million of $604 million (€400 million of €450 million) accounts receivable facility was available and funded.
(c) At September 30, 2011, $8 million of letters of credit were issued under the European revolving credit facility.
(d) $630 million outstanding on our 10.5% notes and $524 million borrowed under the European revolving credit facility.
(e) $336 million Eurobond due in 2019, $1,258 million due in 2020 and $149 million due in 2028.
$1,743 (e)
2019 &
Beyond
24

MegaTrend #1: Significant GDP growth in emerging
markets will provide impressive tire market growth
Millions of Tires
1600
1400
1200
1000
800
600
400
200
0
Global Consumer Industry (Replacement + OE)
Emerging Markets
Developed Markets
Note: Typical
consumer plant =
5 to 10 million
tires per year
1,080
Growth ~4% CAGR (a)
~50 million tires/year
1,330
2007 2008 2009 2010 2011 2012 2013 2014 2015
(a) CAGR – Compounded Annual Growth Rate
Goodyear Investments to Capture Targeted Growth Opportunities
Source: Estimates based on Goodyear internal analysis and industry data sources
25

MegaTrend #2: Developed markets’ size, mix and drive
for innovation provide profitable market segments
Market Positioning
2010 North America Consumer Replacement Industry Segmentation
1
Where the market is today 2 Where the market is growing
2010 Industry Mix (% of total)
Commuter
/Touring
Production Application
Per-
formance
All Terrain
& Winter
Total
Premium 6% 9% 3% 17%
Mid-Tier 33% 9% 11% 53%
Economy 16% 4% 10% 30%
Total 55% 22% 23% 100%
Goodyear’s Targeted Segments Account for ~50% of the Overall Market and
are Expected to Grow at 2X the Overall Market Rate
Market Positioning
Source: Analysis based on Goodyear internal analysis and industry data sources
2010 vs 2009 Industry Growth Rate %
Commuter
/Touring
Production Application
Per-
formance
All Terrain
& Winter
Total
Premium 5% 11% 4% 8%
Mid-Tier 4% 13% 2% 5%
Economy 1% 2% 1% 1%
Total 3% 10% 2% 4%
Growth > Averaqe Growth = Averaqe Growth < Averaqe
26

MegaTrend #3: High Value Added technology will
continue to migrate into mid-tier cars/tires
LVA Tire
(Low-Value-Added)
• Consumer HVA tires incorporating one or more of the following features:
– Rim diameter 17” or greater
– Reduced sidewall height
– Speed-rated H or higher
Incremental
$10 - $20
Margin Per Tire
Dual Tread
Zones with
TredLock
Technology
– Segmented mold
– Advanced tread compounds
– Extra load constructions
HVA Tire
(High-Value-Added)
Carbon Fiber
Dual Reinforced
Sidewalls
• Commercial tires with specific performance characteristics (e.g., Fuel Max, DuraSeal)
and retreadability
Goodyear Capturing Higher Margins Through Improved Value
Proposition for New Products
Silica
Tread
Additional
Components
For Handling
27

MegaTrend #4: “Green” (fuel efficiency) will be a growing and
permanent global theme
Locations where
Goodyear fuel
efficient tires sold –
(determined by 2011 estimated
sales by country)
† – Actual savings may vary based on when tires
are replaced, driving and road conditions, and
proper tire maintenance
Leading Fuel Efficient Products Globally, Offering Strong Value Proposition
28

MegaTrend #5: Tire performance labeling will become
an industry standard
• Labeling requirements likely in place
in most major markets over next 2 to
3 years (EU in 2012)
• Goodyear proactive in helping
develop European and U.S.
regulations
• Early research indicates consumers
sensitive to tire labels
• New generation of tire technology
required to achieve top ratings
Goodyear Accelerating Innovation Efforts
to Win Tire Labeling Race
U.S. NHTSA rules pending (earliest Q1 2013)
Traction
(wet grip)
EU regulations take effect November 2012
Fuel
efficiency
Noise
Fuel
efficiency
Treadlife
(durability)
Traction
(wet grip)
29

Production Capability
200
Plants now
closed or now
planned for 36
closure / sale - Shift reduction
Tire Production in Millions
- Plant closures
173
17
164 156
+ Investment
+ Efficiency
+ Shifts Added
- Plant closures
195
13
182
2007 2010 2013E
HVA Mix 61% 73% 77%
LAT/Chile
Asia/Pulandian
30

2010 Year-End Postretirement
Funded Status
($ in millions)
Postretirement Funded Status
December 31,
2010
U.S. pension $ (1,927)
$ (1,931)
Non-U.S. pension (622)
December 31,
2009
(784)
Total Pension $ (2,549)
$ (2,715)
Other postretirement benefits (597) (551)
Net unfunded obligation $ (3,146)
$ (3,266)
31

Mandatory Convertible Preferred Stock
Common Share Impact Upon Conversion
Common
Share Price
Conversion
Rate
Common Shares
Issuable upon
Conversion % Dilution *
* Assumes 244 million common shares outstanding as of 9/30/11
Common Share
Price
Appreciation**
$14.57 3.4317 34,317,000 14.1% 0%
and below
$15.00 3.3333 33,333,333 13.7% 3%
$16.00 3.1250 31,250,000 12.8% 10%
$17.00 2.9412 29,411,765 12.1% 17%
$18.00 2.7778 27,777,778 11.4% 24%
$18.21 2.7454 27,454,000 11.3% 25%
and above
** Appreciation from Goodyear common share price of $14.57 on date of issuance of Mandatory Convertible
Preferred Stock
32

Reconciliation for Segment Operating Income
($ in millions)
2010
Total Segment Operating Income $917
Rationalizations (240)
Interest expense (316)
Other expense (186)
Asset write-offs and accelerated depreciation (15)
Corporate incentive compensation plans (71)
Intercompany profit elimination (14)
Other (67)
Income before Income Taxes $8
33

Third Quarter 2011 Debt
($ in millions) September 30,
2011
June 30,
2011
March 31,
2011
December 31,
2010
Notes Payable:
Notes Payable and Overdrafts $ 312 $ 261
$ 245
$ 238
Long-Term Debt:
Notes:
10.5% due 2016 $ 630 $ 629
$ 967
$ 966
6.75% Euro Notes due 2019 336
362
-
-
8.25% due 2020 994
994
994
993
8.75% due 2020 264
264
263
263
7% due 2028 149
149
149
149
Credit Facilities:
$1.5 billion first lien revolving credit facility due 2013 200
-
-
-
$1.2 billion second lien term loan facility due 2014 1,200
1,200
1,200
1,200
€400 million revolving credit facility due 2016 524
138
291
-
Pan-European accounts receivable facility due 2015 537
463
418
319
Chinese credit facilities 370
329
261
153
Other domestic and international debt 538
496
477
446
$ 5,742 $ 5,024
$ 5,020
$ 4,489
Capital lease obligations 29
19
19
18
$ 5,771 $ 5,043
$ 5,039
$ 4,507
Total Debt $ 6,083 $ 5,304
$ 5,284
$ 4,745
34

Thank you