Slide 1: Second-Quarter 2024 Earnings Review
Second-Quarter 2024 Earnings Review Thursday, July 25, 2024
Slide 2: Cautionary Statement
Cautionary Statement This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document may include,
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain non-GAAP financial measures. We supplement the reporting of our financial information determined under U.S. Generally Accepted Accounting Principles (GAAP) with certain non-GAAP financial measures, some of which we refer to as "ongoing" measures, inc
Slide 4: Second-Quarter Earnings
Second-Quarter Earnings Whirlpool Corporation Confidential Marc Bitzer Jim Peters CHAIRMAN AND EXECUTIVE VICE PRESIDENT CHIEF EXECUTIVE AND CHIEF FINANCIAL AND OFFICER ADMINISTRATIVE OFFICER
Slide 5: Executive Summary
Executive Summary ● ~100bps of sequential global EBIT margin expansion, demonstrating solid margin progression ● ~70bps MDA North America sequential EBIT margin expansion driven by promotional pricing actions ● Sustained strong performance in SDA Global, MDA Latin America, and MDA Asia ● Organizatio
Slide 6: 2024 Second-Quarter Results
2024 Second-Quarter Results PROFITABLE GROWTH Net Sales YoY Change $4.0B (16.8)% ● Organic net sales growth, excluding EMEA divestiture 1.2% organic ● MDA North America pricing actions fully on track MARGIN EXPANSION Ongoing EBIT YoY Change ● Delivered ongoing EPS of $2.39 Margin 5.3% (2.0) pts ● Q2
Slide 7: Ongoing EBIT Margin Drivers
Ongoing EBIT Margin Drivers (Approximate impact) Q2 2023 Ongoing EBIT Margin 7.3% Price/Mix -3.00 Net Cost* +1.00 Raw Material Inflation nm Marketing & Technology Investments -0.50 Currency -0.25 Europe Transaction +0.75 2024 Ongoing EBIT Margin 5.3% *Inclusive of Fixed Cost Take Out, Ongoing Cost Pr
Slide 8: MDA North America Second-Quarter Results
MDA North America Second-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN -6% -41% 6% -3.8pts 21% 0.8pts Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 ● Unfavorable market environment impacted net sales ● Price/mix turned positive during the quarter as a result of promo
Slide 9: North America Promotional Price Actions and Global Cost Take Out Actions Fully On Track
North America Promotional Price Actions and Global Cost Take Out Actions Fully On Track 5% PROMOTIONAL PRICING ACTIONS $300M-400M GLOBAL COST TAKE OUT Replacement nature of demand environment limits promotional ~$100M carryover of 2023 actions effectiveness New promotional program prices in place effe
Slide 10: MDA Latin America Second-Quarter Results
MDA Latin America Second-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN 11% 6% 7% -20% -2.0pts -0.3pts Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 ● Net sales excluding currency increased ~15% year-over-year due to industry growth and share gains in both Brazil and
Slide 11: MDA Asia Second-Quarter Results
MDA Asia Second-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN 43% 110% 2.7pts 20% 91% 1.6pts Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 ● Net sales excluding currency increased ~21% year-over-year driven by strong industry volume and continued share gains ● EBIT m
Slide 12: SDA Global Second-Quarter Results
SDA Global Second-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN 11% 24% 1.4pts -21% -4.2pts 3% Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 ● Double-digit net sales growth year-over-year driven by new product launches and direct to consumer business growth ● Net sal
Slide 13: Revised 2024 Full-Year Guidance
Revised 2024 Full-Year Guidance PROFITABLE GROWTH MARGIN EXPANSION CASH CONVERSION 2026 GOALS ~$17.2B ~9.0% ~7.0% ONGOING EARNINGS BEFORE INTEREST FREE CASH FLOW ANNUAL ORGANIC NET SALES AND TAX, % OF NET SALES AS % OF NET SALES Net Sales YoY Change Ongoing EBIT YoY Change Free FCF as % of Margin Ca
Slide 14: Revised 2024 Guidance Demonstrates Strong Quarterly EBIT Margin Progression
Revised 2024 Guidance Demonstrates Strong Quarterly EBIT Margin Progression Revised FY ‘24 Guidance | ~6.0% ~ ~ EBIT Margin % 5.3% MDA EMEA excluded beginning Apr ‘24 14
Slide 15: Full-Year 2024 Ongoing EBIT Margin Guidance
Full-Year 2024 Ongoing EBIT Margin Guidance (Approximate impact) Previous Current Comments 2023 Ongoing EBIT Margin 6.1% 6.1% • ~5% promotional program actions Price/Mix -1.5 to -1.75 -2.00 • 2023 lower promotional base spend +1.50 to • Cost actions expected to deliver lower end of range of Net Cost
Slide 16: 2024 Segment Guidance
2024 Segment Guidance Industry EBIT % Previous Current Previous Current MDA North America 0 - 2% ~Flat ~9% ~7% MDA Latin America 0 - 3% 5 - 7% ~6.5% ~7% MDA Asia 4 - 6% 4 - 6% ~3% ~4% SDA Global 2 - 4% ~Flat ~15.5% ~15.5% MDA Europe (1)% (1)% (1.1)% (1.1)% (Q1 Actuals) Total ~0 - 2% ~0 - 1% ~6.8% ~6
Slide 17: 2024 Free Cash Flow Guidance
2024 Free Cash Flow Guidance (Approximate impact in millions) 2023 2024 Comments Previous Current $1,100 - Cash Earnings and Other Operating Items $910 ~$975 $1,200 • Innovation, digital transformation and Capital Expenditures $(549) ~$(600) ~$(550) capacity investments Working Capital $37 ~$100 ~$1
Slide 18: 2024 Capital Allocation Priorities
2024 Capital Allocation Priorities 2024 Cash Expectations Clear Capital Allocation Priorities Beginning Cash ~$1.6B Expect ~$400M dividend* in 2024 on Hand 2024 FCF ~$0.5B ● $500M of term loan repaid in April India share sale & Brastemp ~$0.5B ● ~$50M share buyback in H1 water business *Subject to b
Slide 19: Closing Summary
Closing Summary ● Q2 delivered sequential margin expansion and solid performances across our international regions and Global SDA ● Actions implemented are delivering sequential margin expansion ● MDA North America well positioned for growth and further margin expansion ○ Best brand and product port
Slide 20: Closing Remarks and Q&A
and Q&A Closing Remarks Whirlpool Corporation Confidential
Slide 21: 2024 Guidance Bridge
2024 Guidance Bridge Q2-Q4 2023 2023 As 2023 Like for 2024 MDA Reported Like Guidance In billions Europe* Net Sales $19.46 $2.56 $16.90 ~$16.95 Ongoing EBIT $1.19 $0.03 $1.16 ~$1.00 Ongoing EBIT Margin 6.1% 1.2% ~6.9% ~6.0% *Q2-Q4 historical segment financial data (unaudited) 21
Slide 22: Key Assumptions - Guidance
Key Assumptions - Guidance Income Statement FY2023 FY2024E Raw Material (Inflation) / Deflation $460M nm Restructuring Costs* $16M ~$75M Interest Expense $351M ~$355M Corporate Center $200M ~$200M Weighted-Average Diluted Shares Outstanding 55.2M 55.2M** GAAP Earnings per Diluted Share $8.72 ~$3.00 On
Slide 23: Interest and Sundry (Income) Expense
Interest and Sundry (Income) Expense Q2 (Approximate impact in millions) 2023 2024 Comments • Includes foreign exchange and hedge Net Foreign Exchange $0 $9 (gain)/loss • 2024 interest income Interest (Income) Expense/Other $10 $(2) • 2023 legacy EMEA legal matters Equity Method Investment (Income)
Slide 24: Restructuring Cash Outlays
Restructuring Cash Outlays (Approximate impact in millions) 2023 2024E Comments COVID-19 Related Actions $20 $0 Other Initiatives $12 ~$75 ● Primarily due to organizational simplification Total $32 ~$75 Note: Numbers may not reconcile due to rounding 24
Slide 25: Whirlpool
Whirlpool Whirlpool KitchenAid JENNAI? MAYIAG AMANA BRASTEMP' Consul inQDertor