Whirlpool Corporation · NYSE:WHR
Whirlpool — Raymond James 44th Annual Institutional Investors Conference 2023
16 slides from Whirlpool's conference presentation, Mar 6, 2023
Slide 1: Raymond James 44th Annual Conference
Raymond James 44th Annual Conference 1
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: Our Business
Our Business $20B ANNUAL SALES 61K EMPLOYEES 56 MANUFACTURING & TECHNOLOGY CENTERS 3
Slide 4: Our Leading Position
Our Leading Position Leading Scale in Proven Innovation Key Countries Best Brand Portfolio Track Record Best Cost Position Strong position in Key Global Multiple brands with $1B+ in sales We have proven track record for Target: 50-100 basis points of Marketplaces innovation in our 111 years annual n
Slide 5: Successfully Managed Challenging Environments
Successfully Managed Challenging Environments Structurally Improved EBIT Margins Significant EPS Growth Strong Free Cash Flow (2) (2) (3) 4% $M CAGR 13%+ CAGR 4%+ CAGR Past Five Years: The Best Results in Our 111 Year History 5
Slide 6: Significant Portfolio Transformation Well Underway
Significant Portfolio Transformation Well Underway THREE STRONG PILLARS Value Creating Milestones SMALL APPLIANCES MAJOR APPLIANCES COMMERCIAL APPLIANCES (GROW, ALSO INORGANICALLY) (STRENGTHEN + REFOCUS) (GROW, ALSO INORGANICALLY) 2018 2019 2021 2022 2023 ● More global in nature ● Invest in ‘Win Amer
Slide 7: Why a Portfolio Transformation?
Why a Portfolio Transformation? WE ARE EXPERIENCING A DIFFERENT, FOCUS ON HIGH GROWTH, HIGH LESS GLOBAL WORLD MARGIN BUSINESSES We Are Positioning Whirlpool For The New World Transforming Global Business Portfolio ▪ Decoupling of global economies creating a ▪ Our value creation bar has been raised ‘
Slide 8: Successfully Completed Strategic Review of Our EMEA Business
Successfully Completed Strategic Review of Our EMEA Business Transaction Details Divested Businesses* ● Retaining 25% stake(1) in a newly formed European appliance company ~$3.5 BILLION ~(3)% EBIT in sales in 2022 EBIT Margins in 2022 ● $750M+ net present value of predictable cash flows of Whirlpool
Slide 9: Perspective on External Environment in 2023
Perspective on External Environment in 2023 FIRST HALF SECOND HALF ● Remains subdued; demand (5) - (10)% ● Underlying strong fundamentals to become visible with exit flat to 2022 DEMAND ● Expect promotional environment similar to second half 2022, below pre-pandemic levels ● Expect promotional enviro
Slide 10: U.S. Replacement Demand is Solid and Expected to Further Increase
U.S. Replacement Demand is Solid and Expected to Further Increase Replacement cycle will further boost appliance sales Discretionary ● Replacement cycle is shrinking (-2yrs vs 2010) Industry volume (‘000) ● Replacement demand will further grow due 55% 61% to increased appliance usage Replacement 54%
Slide 11: Our 2023 Operational Priorities Are Clear
Our 2023 Operational Priorities Are Clear COST STRUCTURE RESET DELIVERING $800 - $900M BENEFIT Responsive & Adaptive Supply Chain Substantial Cost Reduction in 2023 $500M ● Flawless execution of supply chain Net Cost & RMI ($M) ● Aggressive expansion of dual sourcing $0M ● Strong focus on complexity
Slide 12: 2023 Guidance
2023 Guidance PROFITABLE GROWTH MARGIN EXPANSION CASH CONVERSION LONG-TERM GOALS 5-6% 11-12% 7-8% ONGOING EARNINGS BEFORE INTEREST FREE CASH FLOW ANNUAL ORGANIC NET SALES GROWTH AND TAX, % OF NET SALES AS % OF NET SALES Net Sales YoY Change Ongoing EBIT YoY Change Free FCF as % of Margin(2) Cash Flo
Slide 13: Our Investment Thesis
Our Investment Thesis Profitable Growth Margin Expansion Free Cash Flow Funding the Business Returning Cash Conversion through Innovation to Shareholders 5% - 6% 11% - 12% 7% - 8% Investing ~6% $5 BILLION Annual Organic Net Sales Ongoing EBIT, % of Net Sales FCF as % of Net Sales of Net Sales returne
Slide 14: Hotpoint brand ownership note
* Whirlpool Corporation ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas
Slide 15: Free Cash Flow Historical Summary
Free Cash Flow(3) Historical Summary (Approximate impact in millions) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cash provided by (used $1,078 $530 $696 $1,262 $1,479 $1,225 $1,203 $1,264 $1,229 $1,230 $1,500 $2,176 $1,390 in) operating activities Capital expenditures (593) (60
Slide 16: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, some of which we refer to as “ongoing” (2) measures: Ongoing earnings per diluted share, earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, and ongoing EBIT margin Other non-GAAP finan
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