Emmanuel Rosner: That’s super helpful. Would you think that 70% holds also for the $375 million in benefit expected for this year? Or is it more of a…
Christina Zamarro: Yes, I would use the same math.
Emmanuel Rosner: Okay. And then one final quick one, if I may. I guess, what can you tell us about the process to divest the non-core assets? And how that’s actually going? Any new or updated timeline around potential future updates?
Christina Zamarro: Yes, so we — this is regarding the strategic review on our portfolio. And, Emmanuel, I’d say that the process for each one of these assets is well underway. It’s exactly where we expect it to be at this point in time. And if you remember on our fourth quarter call, we said that we should be in a position to offer a more fulsome update on one or more of these processes by mid-year. So you can think about that being our second quarter conference call. We are still working towards that timeline. So no other update other than things are progressing and progressing well.
Emmanuel Rosner: Great. Thank you.
Operator: Our next question comes from Ryan Brinkman with JP Morgan. Please go ahead.
Ryan Brinkman: Good morning. Thanks for taking my questions. Firstly, Mark, it was great to hear in your introductory remarks that you were able to come in and initial and outside dug into deeply into the Goodyear Forward plan, [Technical Difficulty] that you were able to independently confirm for yourself the line of sight into the operating improvements at the rest of the management team had identified? At the same time, I recall you on the last call saying that while it has been extremely early days, and you’re listening to it, et cetera, that you were looking to also identify some quick and easy wins or low-hanging fruit in terms of how the plan which you said like good bones, how it might be augmented or accelerated in wise. I’m just curious, the last 90-days, what incremental opportunities you have found or are looking into that you think might have the most potential?
Mark Stewart: Sure. Thanks, Ryan. And as you said, many know, I sometimes have a big mouth, but I definitely listened a lot the first five weeks. One of the things though in the first five weeks, which we did execute very quickly was to pitch on pace our Chief Procurement Officer on the senior leadership team staff, reporting directly to myself. It’s very important that we have real time visibility and ability to help Sean and the purchasing team to — in terms of speed of execution. And so we absolutely have done that. We’ve identified some additional savings streams in that area in quite a few. They’ve actually increased of speed of going through some of the global bid process starting here in the Americas, but are looking as well into both from the raw material stream, but as well into our MRO, which we have identified quite a few additional opportunities, MRO, contract employees, the way our contracts are set up, we’re going through things, basic manufacturing one-on-ones, if you will, such as our overtime planning, our scheduling within our manufacturing facilities with our plant leadership teams.
We’ve brought in all of our plant leaders across the Americas, and we’ve had some sessions with those guys face-to-face, as well as we do weekly sessions with them. And we’ve really got ourselves lined up slightly differently across process streams, so that we can take our best-in-class performance benchmark and ensure that those are copied across the network in order to capture those savings, whether they were already in a plan, but maybe the timing was different. So we’ve been able to pull those in faster in terms of our execution within this year and next, as well as things that maybe weren’t on the radar screen for a particular plant. We’re also moving resources across plants, both engineering as well as our manufacturing resources, to speed those execution pieces as well, Ryan.
So those are a couple — just a couple of highlights to what we’ve been doing with that. The other thing we’re in the process now is more of a centralized manufacturing footprint for consistency and for us to be able to take efficiencies in terms of OEE, reducing our scrap, commonality and complexity reduction, all tied in with our ship cost activity. So we’ve got ourselves lined up for that. We have reduced the number of KPIs that we’re looking at into the important — the top important ones for us that have the biggest lever for impact. And we’re driving those on a week-by-week basis to make sure that we have clarity with the teams that we have ownership with the teams, and we have timing of when to do those things.
Ryan Brinkman: Okay, thanks. And then lastly for me [Technical Difficulty] the focus in the plan on significantly increasing [Technical Difficulty] that free cash flow will naturally follow and benefit also, of course, from the deleverage enabled by the non-operating or divestiture aspect of the plan. But I’m curious how you’re thinking about other opportunities to improve free cash flow relative to EBITDA and how important that is or should be as a part of the plan. We’ve sometimes seen big inflections in cash flow after management have changed the way in which their employees are incentivized, thinking as LKQ was one example in this industry. I know there’s rightly a ton of focus on driving margin and then getting those divestitures done to pay down the debt.
But how large of an opportunity might there be around working capital efficiency, CapEx discipline, CapEx reusability, anything that you can — I think to bring from your former employment, et cetera? And how are you thinking about the cadence of operating earnings improvement versus the cash flow as we progress through the plan? Maybe that one is more for [Technical Difficulty].
Mark Stewart: Sure. Maybe let me start on and Christina will add on to it. But when we think about the again, things kind of coming from my past, right, of also highly capital-intensive businesses as well. So we’ve already — we’ve got a very clear line of sight to the R&D that we have planned for as part of both Goodyear Forward and then in the years following as well, right? So a very disciplined approach on that. Another reason why we put purchasing to the leadership team of us working together with purchasing and engineering, looking to what is our manufacturing equipment strategy, looking at the items again on a payback analysis on that best return on capital for the modernization activities, we have a tremendous amount of modernization going on this year.
