Slide 1: Long-Term Value Creation Goals & Third Quarter 2021 Earnings Review
Long-Term Value Creation Goals & Third Quarter 2021 Earnings Review FRIDAY, OCTOBER 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: Long-Term Value Creation Goals & Third Quarter 2021 Earnings Review
Long-Term Value Creation Goals & Third Quarter 2021 Earnings Review FRIDAY, OCTOBER 22, 2021
Slide 4: Global Overview & 2021 Guidance
Global Overview & 2021 Guidance Jim Peters EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 5: Third-Quarter Results Highlights
Third-Quarter Results Highlights PROFITABLE GROWTH Net Sales YoY Change ▪ Revenue growth of 4% year-over-year and 8% compared to 2019 driven by sustained consumer demand $5.5B 3.7% (2.9% ex-currency) ▪ Strong double-digit ongoing EBIT margin(1) of 11.1%, largely offsetting MARGIN EXPANSION expected r
Slide 6: Ongoing EBIT Margin Drivers
Ongoing EBIT Margin(1) Drivers (Approximate impact) Q3 2020 Ongoing EBIT Margin(5) 11.9% Price/Mix +6.00 Net Cost* +0.50 Raw Material Inflation -6.50 Marketing & Technology Investments -0.50 Currency -0.25 2021 Ongoing EBIT Margin 11.1% *Inclusive of Fixed Cost Takeout, Ongoing Cost Productivity (Inc
Slide 7: 2021 Guidance
2021 Guidance PROFITABLE GROWTH MARGIN EXPANSION CASH CONVERSION Previous LONG-TERM ~3% ~10% 6%+ ONGOING EARNINGS BEFORE INTEREST ADJUSTED FREE CASH FLOW TARGETS ANNUAL ORGANIC NET SALES GROWTH AND TAX, % OF NET SALES AS % OF NET SALES Net Sales YoY Change Ongoing EBIT YoY Change Adjusted Free Adjus
Slide 8: 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 9: 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 10: Regional Overview
Regional Overview Joe Liotine PRESIDENT AND CHIEF OPERATING OFFICER
Slide 11: North America Third-Quarter Results
North America Third-Quarter Results ▪ Top-line growth driven by cost-based price increases and sustained consumer demand ▪ Strong EBIT performance led by price/mix ▪ Constraints remain elevated across entire supply chain 11
Slide 12: EMEA Third-Quarter Results
EMEA Third-Quarter Results ▪ Stable revenue year-over-year and +15% vs. 2019 ▪ EBIT negatively impacted by inflation partially offset by cost-based price increases ▪ Long-term turnaround remains on track 12
Slide 13: Latin America Third-Quarter Results
Latin America Third-Quarter Results ▪ Very strong revenue growth driven by cost-based price increases and strong industry in Mexico ▪ EBIT impacted by inflation and supply constraints partially offset by very strong top-line results ▪ Strong EBIT margin performance despite supply constraints and curre
Slide 14: Asia Third-Quarter Results
Asia Third-Quarter Results ▪ Revenue decline entirely driven by Whirlpool China* divestiture ▪ EBIT growth primarily driven by cost-based price increases and Whirlpool China* divestiture ▪ Successful acquisition of majority interest of Elica PB India** *Partial tender offer for Whirlpool China closed
Slide 15: Long-Term Value Creation Goals
Long-Term Value Creation Goals Marc Bitzer CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Slide 16: Announcing New Long-Term Value Creation Goals On Strength Of Continued Record Performance
Announcing New Long-Term Value Creation Goals On Strength Of Continued Record Performance ▪ As expected we continue to operate in a supply constrained and inflationary environment ▪ Yet, we are on track for another year of record performance, for the fourth year in a row, demonstrating our ability to
Slide 17: We Have Exceeded Our Existing Targets
We Have Exceeded Our Existing Targets VALUE CREATION GOALS HAVE BEEN IN PLACE SINCE 2017 Revenue Growth on Track EBIT Expansion Delivered Consistent Cash Generation (2) (1) ~3% Previous Target ~10% Previous Target 6%+ Previous Target ~3% CAGR Consistently delivering on our long-term targets 17
Slide 18: Raising Our Long-Term Value Creation Goals
Raising Our Long-Term Value Creation Goals ACHIEVING THESE GOALS WILL CONTINUE TO DRIVE SIGNIFICANT TSR Sales Ongoing EBIT(1) Adjusted FCF(2) ROIC (Annual Organic Net Sales (Ongoing Earnings Before (Adjusted Free Cash Flow (Return on Invested Capital) Growth Excluding Currency) Interest and Tax, % o
Slide 19: Why 5-6% Revenue Growth?
Why 5-6% Revenue Growth? STRONG LONG-TERM DEMAND TRENDS STRONG HOUSING TRENDS STRONG REPLACEMENT TRENDS STRONG DISCRETIONARY TRENDS ● Aging home inventory below ● Replacement trough years ● Increased disposable income structural requirement (2016-2020) are behind us ● Record home equity levels ● Pen
Slide 20: Why 5-6% Revenue Growth? E-commerce and D2C
Why 5-6% Revenue Growth? E-COMMERCE TRENDS AND OUR FAST GROWING D2C BUSINESS ~$1B D2C BUSINESS OVERVIEW GROWTH >25% CAGR D2C Sales Growth ● Global e-commerce business accelerated significantly during Covid and will not drop back to pre-Covid levels ● Previous multi-year investments in Strategic Digit
Slide 21: Why 11-12% EBIT?
Consistently delivering Why 11-12% EBIT? above our targets STRUCTURAL EBIT Ongoing EBIT(1) MARGIN EXPANSION EBIT margin growth fueled by: ● Value creating promotional approach Ongoing EBIT Margin % ● Relentless focus on cost and complexity reduction ○ Cost productivity (>$1B 2016 - 2021) ● Continued
Slide 22: Why Adjusted FCF 7-8% and 15-16% ROIC?
Why Adjusted FCF 7-8% and 15-16% ROIC? Adjusted Free Cash Flow Conversion Strong and Improving ROIC Positioned to capitalize on structural Positioned to grow efficiently position and drive high cash conversion ● Large acquisition-related items ● Consistently delivering double-digit behind us ROIC ● Ba
Slide 23: Executive Summary
Executive Summary ▪ Strong Q3 results again demonstrate our ability to operate in any environment ▪ Increased ongoing EPS guidance reflects our confidence in our business ▪ Delivering on our commitment to return cash to shareholders ▪ New long-term value creation goals reflect a different Whirlpool in t
Slide 24: Closing Remarks and Q&A
Closing Remarks and Q&A
Slide 25: 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 26: Appendix
Appendix
Slide 27: Replacement Cycle Driving Strong U.S. Demand Expectations
Replacement Cycle Driving Strong U.S. Demand Expectations 4%+ ~4.5% 27
Slide 28: 2021 Regional Guidance
2021 Regional Guidance Industry EBIT % Previous Current Previous Current North 10%+ unchanged ~17% ~17.5% 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 8%+ unchanged 10.5%+ 10.8% *Partial
Slide 29: 2021 Adjusted Free Cash Flow Guidance
2021 Adjusted 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 $2,450 $2,450 Items • Innovation and digital transformation Capital Expenditures $(410) $(600) $(600) investments W
Slide 30: Key Assumptions – Guidance
Key Assumptions – Guidance Income Statement FY2020A FY2021E Raw Material (Inflation) / Deflation $250M ~$(1,000)M Restructuring Costs $288M ~$55M Interest Expense $189M ~$180M Adjusted Effective Tax Rate 26.3% 24-26% Weighted-Average Diluted Shares Outstanding 63.3M 62.7M* Cash Flow Statement FY2020A F
Slide 31: Interest and Sundry (Income) Expense
Interest and Sundry (Income) Expense Q3 (Approximate impact in millions) 2020 2021 Comments • Includes foreign exchange and hedge Net Foreign Exchange $(7) $(7) (gain)/loss Interest (Income)/Other (15) (70) • Elica PB India* and LAR tax credit Interest and Sundry (Income) Expense $(22) $(78) Note: N
Slide 32: Restructuring Cash Outlays
Restructuring Cash Outlays (Approximate impact in millions) 2020 2021 Comments COVID-19 Related Actions $115 $75 Naples Closure 24 70 • Naples, Italy manufacturing facility Other Initiatives 57 30 • Primarily previous year actions Total $196 ~$175 32
Slide 33: 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 34: Adjusted Free Cash Flow Other Items
Adjusted 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 Cr
Slide 35: Use of Non-GAAP Financial Measures, GAAP Accounting Changes and Additional Items
Use of Non-GAAP Financial Measures, GAAP Accounting Changes and Additional Items 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 EBI