Goodyear Forward: Driving Shareholder Value slide image

Goodyear Forward: Driving Shareholder Value

Portfolio Optimization: Sharpening our Focus Margin Expansion: Creating Fuel for Growth Addressing Leverage: Strengthening our Profile MARGIN EXPANSION: $1B COST REDUCTION WORKSTREAMS WITH CLEAR LINE-OF-SIGHT TO 100% OF THE COST SAVINGS BY 2025 ENABLED BY -$1.1 BILLION OF RESTRUCTURING TO ACHIEVE THE COST REDUCTION Footprint Actions and Plant Optimization • Initiatives driving component simplification, increased product standardization and fewer changeovers, enhanced predictive maintenance, labor productivity and ongoing footprint actions ⚫ SKU rationalization to reduce complexity and enable increased plant efficiency Purchasing • Reduction in raw materials costs via "clean sheet" approach to identify and negotiate best-in-class prices • Vendor + spend consolidation ⚫ Rigorous data-driven negotiations ⚫ Material substitution and consolidation SAG • Growth in low cost/off- shore shared service centers ⚫ Lean / best-in-class organizational structure for lower cost and increased efficiency • Increased automation of transactions via IT / AI • Refined marketing and other non-FTE spend Supply Chain and R&D ⚫ Digital inventory and logistics planning, virtual R&D prototyping and increased efficiency • Optimize logistics to reduce less-than- truckload shipments • Establish offshore product development centers 12 40% 35% 20% 5%
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