Slide 1: Second Quarter 2021 Earnings Review
Second Quarter 2021 Earnings Review THURSDAY, JULY 22, 2021
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: Global Overview
Global Overview Marc Bitzer CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Slide 4: Second-Quarter Results Highlights
Second-Quarter Results Highlights PROFITABLE GROWTH Net Sales YoY Change ▪ Very strong year-over-year revenue growth of 32% driven by sustained consumer demand and cost-based price initiatives $5.3B 31.7% (28.3% ex-currency) ▪ Execution of decisive actions delivering: MARGIN EXPANSION ✓ Ongoing EPS(
Slide 5: Substantial Margin Expansion
Substantial Margin Expansion (Approximate impact) Q2 2020 Ongoing EBIT Margin(5) 5.0% Price/Mix +6.00 Net Cost* +5.50 Raw Material Inflation -4.00 Marketing & Technology Investments -0.50 Currency -0.50 2021 Ongoing EBIT Margin 11.4% *Inclusive of Fixed Cost Takeout, Ongoing Cost Productivity (Includ
Slide 6: Regional Overview
Regional Overview Jim Peters EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 7: North America Second-Quarter Results
North America Second-Quarter Results ▪ Significant top-line growth driven by sustained strong consumer demand ▪ Very strong EBIT performance led by disciplined execution of go-to-market initiatives ▪ Supply constraints remain elevated 7
Slide 8: EMEA Second-Quarter Results
EMEA Second-Quarter Results ▪ Year-over-year double-digit volume growth across all key countries ▪ Significant EBIT improvement (+$97M) driven by very strong top-line growth and cost actions ▪ Q2 EBIT again demonstrates progress towards long-term targets 8
Slide 9: Latin America Second-Quarter Results
Latin America Second-Quarter Results ▪ Revenue growth driven by strong industry in Brazil and Mexico ▪ EBIT growth driven by robust consumer demand and strong execution of cost-based pricing actions ▪ Strong EBIT margin performance despite currency headwinds in Brazil and Argentina 9
Slide 10: Asia Second-Quarter Results
Asia Second-Quarter Results ▪ Revenue decline driven by Whirlpool China divestiture* and COVID-related shutdown in India ▪ EBIT growth (+$23M) led by cost-based pricing and cost productivity actions ▪ India demand started to recover in June *Partial tender offer for Whirlpool China closed May 6, 2021
Slide 11: 2021 Guidance
2021 Guidance Marc Bitzer Jim Peters CHAIRMAN AND EXECUTIVE VICE PRESIDENT CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
Slide 12: Updated 2021 Guidance
Updated 2021 Guidance PROFITABLE GROWTH MARGIN EXPANSION CASH CONVERSION LONG-TERM ~3% ~10% 6%+ GOALS ONGOING EARNINGS BEFORE INTEREST ANNUAL ORGANIC NET SALES GROWTH FREE CASH FLOW AS % OF NET SALES AND TAX, % OF NET SALES Net Sales YoY Change Ongoing EBIT YoY Change Free FCF as % of Margin(1) Cash
Slide 13: Full-Year 2021 Ongoing EBIT Margin Guidance
Full-Year 2021 Ongoing EBIT Margin(1) Guidance (Approximate impact) Previous Current Comments 2020 Ongoing EBIT Margin(5) 9.0% 9.0% • Previously announced cost-based price increases coupled with the disciplined execution of go-to-market actions Price/Mix +6.00 +6.00 • Product launches and positive c
Slide 14: 2021 Regional Guidance
2021 Regional Guidance Industry EBIT % Previous Current Previous Current North 6%+ 10%+ 15.5%+ ~17% America Europe, Middle East 2 - 4% unchanged 2.5%+ unchanged & Africa Latin unchanged 2 - 4% unchanged ~8% America Asia* 6 - 8% unchanged 5%+ unchanged Total 5% 8%+ ~10% 10.5%+ *Partial tender offer fo
Slide 15: 2021 Free Cash Flow Guidance
2021 Free Cash Flow(2) Guidance (Approximate impact in millions) 2020 2021 Comments Previous Current Cash Earnings and Other Operating • Driven by increased EBIT growth $1,946 $2,200 $2,450 Items • Innovation and digital transformation Capital Expenditures $(410) $(600) $(600) investments Working Ca
Slide 16: 2021 Capital Allocation Strategy
2021 Capital Allocation Strategy 1. Fund Innovation and Growth Target/Update Capital Expenditure Invest ~3% of net sales Research and Development Invest ~3% of net sales Mergers & Acquisitions Pursue opportunistic M&A with high ROIC 2. Return to Shareholders Target/Update Dividends ~30% of trailing
Slide 17: Executive Summary
Executive Summary ▪ Impressive Q2 results again demonstrate our ability to operate in a volatile environment ▪ Increased guidance reflects our confidence in sustained strong market demand ▪ Delivering on our commitment to return cash to shareholders 17
Slide 18: Closing Remarks and Q&A
Closing Remarks and Q&A
Slide 19: Whirlpool
Whirlpool Whirlpool! KitchenAid’ MAYTAG (j)inpesit PEEamgd Consul SRASTEMP AMANA JENNAIZV Giauknecht acros? DIQUARE *Whirlpool Corporation ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. cl
Slide 20: Appendix
Appendix
Slide 21: Key Assumptions – Guidance
Key Assumptions – Guidance Income Statement FY2020A FY2021E Raw Material (Inflation) / Deflation $250M ~$(1,000)M Restructuring Costs $288M ~$100M Interest Expense $189M ~$180M Adjusted Effective Tax Rate 26.3% 24-26% Weighted-Average Diluted Shares Outstanding 63.3M 63.6M* Cash Flow Statement FY2020A
Slide 22: Interest and Sundry (Income) Expense
Interest and Sundry (Income) Expense Q2 (Approximate impact in millions) 2020 2021 Comments • Includes foreign exchange and hedge Net Foreign Exchange $(7) $(3) (gain)/loss Interest (Income)/Other (8) (33) • LAR tax credit and interest income Interest and Sundry (Income) Expense $(15) $(36) Note: Nu
Slide 23: Restructuring Cash Outlays
Restructuring Cash Outlays (Approximate impact in millions) 2020 2021 Comments COVID-19 Related Actions $115 $105 Naples Closure 24 70 • Naples, Italy manufacturing facility Other Initiatives 57 50 • Primarily previous year actions Total $196 ~$225 23
Slide 24: Sale of Assets/Business
Sale of Assets/Business (Approximate impact in millions) 2020 2021 Comments Real Estate Optimization/Other $166 $65 • Continuation of real estate optimization strategy Sale of China Business - 193 • Sale of majority stake in Whirlpool China Sale of Turkey Business - 93 • Sale of Turkish subsidiary T
Slide 25: Free Cash Flow Other Items
Free Cash Flow(2) Other Items (Approximate impact in millions) 2020 2021 Impact Comments Claim Settlement $(60) - $60 • Trade customer insolvency claim in EMEA • EMEA-produced product warranty recall Washer Recall (50) - 50 expense • Primarily cash tax credits gained through the Cash Tax Credits 200
Slide 26: Use of Non-GAAP Financial Measures and GAAP Accounting Changes
Use of Non-GAAP Financial Measures and GAAP Accounting Changes This presentation includes certain non-GAAP financial measures, some of which we refer to as “ongoing” (1) measures: Ongoing earnings per diluted share, earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, and ongoing EBI