Whirlpool Corporation · NYSE:WHR
Whirlpool — Investor Day (February 2024)
99 slides from Whirlpool's investor day presentation, Feb 27, 2024
Slide 1: Investor Day
Investor Day NYSE | Tuesday, February 27, 2024
Slide 2: Agenda
Agenda Welcome, Overview, & Introductions K. Thomas 9:00–9:05 am Unlocking Value Creation M. Bitzer 9:05–9:30 am Through A Refocused Portfolio Organic Value Creation From A. Perucchetti & 9:30–10:15 am North America & SDA Global Business L. Beaufils Long Term Value Creation & Capital Allocation J. Pe
Slide 3: Today's Presenters
Global Executive Team Roberto Campos Holger Gottstein EVP, Global Product Organization & EVP, Strategy & Today’s Presenters Strategic Sourcing Business Development Marc Bitzer Jim Peters Chairman & EVP, Chief Financial Officer & Chief Executive Officer President, Whirlpool Asia Ava Harter Pam Klyn Carey
Slide 4: 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 5: 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 6: Unlocking Value Creation Through A Refocused Portfolio
Unlocking Value Creation Through A Refocused Portfolio Marc Bitzer Chairman & Chief Executive Officer Investor Day 2024 6
Slide 7: Why We Embarked on A Portfolio Transformation
Why We Embarked on A Portfolio Transformation Decoupling of global Divested assets were economies creating • either capital a ‘New Reality’ intensive (Embraco)... • …or underperformed (China, Europe) • Geopolitical tensions WE ARE • Logistics inflation FOCUS ON HIGHER EXPERIENCING A • Trade barriers
Slide 8: Why We Embarked on A Portfolio Transformation
Why We Embarked on A Portfolio Transformation EXAMPLE: EMEA BUSINESS RESULTS FREE CASH FLOW ($M) EBIT MARGIN %* 3% $200 $0 0% $(200) (3)% 2008 2023 Post Brexit and Russia Business Sale No Clear Path to Sustainable Value Creation 8 *Reflects EMEA operating profit margin for 2008-2013, EMEA ongoing oper
Slide 9: Unlocking Value Creation Through A Refocused Portfolio
Unlocking Value Creation Through A Refocused Portfolio Refocusing MDA business in Americas India and Commercial Focused portfolio key to our portfolio on three and SDA Global business businesses with strong margin and multiple pillars with growth exceptionally well growth opportunities expansion opp
Slide 10: Refocusing Our Portfolio
Refocusing Our Portfolio Portfolio Transformation Announced ADDITIONS * EBIT margins 15%+ SUBTRACTIONS South Africa Turkey Embraco Russia China EMEA** Most businesses with negative EBIT margins *Elica PB Whirlpool Kitchen Appliances Pvt Ltd. Under license from Elica SpA, Italy. 10 **MDA Europe Busin
Slide 11: Our Major Appliance Business with A Strong Position in the Americas and India
Our Major Appliance Business with A Strong Position in the Americas and India NORTH AMERICA #1 $11.4B INDIA Share 2023 Position Net Sales #3 $0.8B Share 2023 Position Net Sales LATIN AMERICA #1 $3.4B Share 2023 Position Net Sales 11 Note: All figures reflective of the major domestic appliances (MDA) o
Slide 12: Segment Reporting Reflects Transformed Portfolio
Segment Reporting Reflects Transformed Portfolio PRIOR REPORTING SEGMENTS (2023) RECAST REPORTING SEGMENTS (2023) NS | $11.4B North America MDA NS | $10.8B EBIT | 9.7% Major Domestic Appliances Small Domestic Appliances North America EBIT | 9.4% NS | $3.6B EMEA MDA(1) NS | $3.4B EBIT | 1.6% Major Dom
Slide 13: Organic Value Creation From Our North American Business
Organic Value Creation From Our North American Business Alessandro Perucchetti Executive Vice President and President, North America 13
Slide 14: North America
North America Major Domestic Appliance Business 2023 2024 2026 $10.8B ~$10.6B ~$11.2B #1 Net Sales Net Sales Net Sales 2-3% CAGR SHARE POSITION 9.4% ~9.0% 11-12% EBIT % EBIT % EBIT % 14
Slide 15: North America Journey
North America Journey STRONG EXECUTION WELL POSITIONED AND DELIVERING MARGIN COVID DRIVEN GLOBAL POST REFOCUSED EXPANSION SUPPLY DISRUPTIONS COVID NORTH AMERICA Pre-Covid: 2017-2019 2020-2021 2022-2023 2024-2026 ● Leading and stable share ● Product shortages ● Unprecedented inflation ● 100bps+ of ann
Slide 16: North America Growth & Margin Expansion Opportunities
North America Growth & Margin Expansion Opportunities 1 Strong Replacement & U.S. Housing Demand 2 New Product Introductions 16
Slide 17: Three Fundamental Components of Appliance Demand
1 Three Fundamental Components of Appliance Demand U.S. DEMAND (% of Units Sold) Discretionary Driven by existing home sales New Construction Driven by new home sales Driven by shrinking replacement Replacement cycle (historically approx. 10 years) 17
Slide 18: Replacement Demand Continues to Be Very Strong Overall
1 Replacement Demand Continues to Be Very Strong 60 Overall Appliance Industry Appliance Units (millions) Shipments Replacement 40 Demand 20 Steady replacement demand Stronger replacement demand Demand driven by discretionary with ~10 year replacement cycle driven by increased usage and / new constr
Slide 19: Existing Home Sales Drive Discretionary Demand
1 Existing Home Sales Drive Discretionary Demand Existing Home Sales Have Bottomed / Expected to Improve DISCRETIONARY DEMAND IS HIGHLY CORRELATED TO EXISTING HOME SALES EXISTING HOME SALES Tech Bubble Financial Crisis Covid-19 • Discretionary demand fell 5 pts 40%+ decline from historical norms to
Slide 20: U.S. New Housing Has Been Undersupplied
1 U.S. New Housing Has Been Undersupplied for More Than A Decade, Creating Long Term Upside MULTI-YEAR HOUSING EXPANSION ON THE HORIZON NEW CONSTRUCTION Tech Bubble Financial Crisis Covid-19 U.S. housing undersupply of 3 to 4 million units housing units started (millions) Steady state supply 1.7-1.9
Slide 21: Our Leading, $2B+ Builder Business is Positioned to Benefit
1 Our Leading, $2B+ Builder Business is Positioned to Benefit from Housing Recovery National Builders Growth Opportunity (Share % across national builders) BUILDERS’ #1 CHOICE: 8 of 10 Top Builders 20pts+ Final Mile Delivery Capabilities Breadth of Brand Portfolio Full Product Line Up 2015 2023 2024
Slide 22: Consumers Remain at the Core of Our Innovation
2 Consumers Remain at the Core of Our Innovation Whirlpool Corporation Confidential $515M 2K+ ~3.5K ~$100M 20%+ 2023 Capex + R&D North American Global Invested in New Product in North America Patents Filed Engineers Technology Centers Introductions in 2019-2023 in 2023 in 2021-2023 North America in 2
Slide 23: Consumers Remain at the Core of Our Innovation
2 Consumers Remain at the Core of Our Innovation MAYTAG PET FREEFLEX FLUSH SLIMTECH PRO WASHER THIRD RACK MICROWAVE REFRIGERATION & DRYER HOOD First laundry pair for The largest available(2) Industry first flush to The first vacuum homes with pets. The third rack with exclusive cabinet design(4) that h
Slide 24: Delivered 100bps+ of 2023 Share Gains
2 Delivered 100bps+ of 2023 Share Gains Expecting Continued Share Momentum Building on Our Leading Position 3 YEAR SHARE GAIN DRIVERS NORTH AMERICA SHARE ~33% • ~1pt from new product launches and first to ~30% market innovations ~28% ~26% • Restoring balance of sale in key trade customers impacted by
Slide 25: InSinkErator - A Perfect Complement
2 InSinkErator - A Perfect Complement Share in Residential Food #1 Position Waste Disposal Industry 2024 Expectations 60M+ Total U.S. Install Base SALES ~$575M 6-8% YoY Growth 65-70% Share U.S. Food Waste Disposal Share EBIT % ~20% ~75% Recurring Like-For-Like Demand Replacement From Leading Install
Slide 26: Runway for Growth for InSinkErator
2 Runway for Growth for InSinkErator U.S. OPPORTUNITY: INTERNATIONAL OPPORTUNITY: Food Waste Disposers ~80% of • Close 20pt penetration gap • 5-6% penetration rates in InSinkErator Sales vs. dishwashers Canada, U.K., Australia & ~40% in New Zealand • New housing growth Closing Penetration Gaps • 10p
Slide 27: Organic Value Creation From Our SDA Global Business
Organic Value Creation From Our SDA Global Business Ludo Beaufils Executive Vice President, KitchenAid Small Appliances 27
Slide 28: KitchenAid A Truly Iconic Brand
KitchenAid A Truly Iconic Brand >100 years … built the strongest …with high relevance to of history… appliance brand by far… all generations Millennials Gen X Boomers (26-41) (42-57) (58+) % Aware +1 vs. closest comp. 95 97 99 Consider (T2) +16 72 79 77 Currently Own +7 46 51 50 Preference +13 28 31
Slide 29: KitchenAid Small Appliances at A Glance
KitchenAid Small Appliances at A Glance OVERVIEW FY FINANCIALS Iconic brand with reputation recognized $1.3B+ for highest quality and performance ~$1.0B $1.0B+ Structurally higher margin business ~14% ~16% Strong digital presence and global presence ~15.5% Tremendous growth potential outside of curr
Slide 30: Diversified KitchenAid Product Portfolio to Serve Full Food Journey
Diversified KitchenAid Product Portfolio to Serve Full Food Journey STAND MIXERS & COFFEE & BREAKFAST ATTACHMENTS FOOD PREP COOKING 30
Slide 31: Strong Product Base with Innovative Launches Ahead
Strong Product Base with Innovative Launches Ahead and Global Expansion Opportunities LONG TERM VALUE CREATION HIGH PREFERENCE STRONG U.S. POSITION, ACROSS LARGE ALL GLOBAL MAJOR CATEGORIES POTENTIAL GLOBAL CATEGORY SIZE* • Sustained investment in our stand mixer business $3B $5B $6B $4B $8B • Accel
Slide 32: Exciting Times Ahead… New KitchenAid Launches
Exciting Times Ahead… New KitchenAid Launches THE MOST SEARCHED ENTERING THE BRAND IN CORDLESS FULLY AUTOMATIC HANDHELDS*, ESPRESSO CATEGORY REVOLUTIONIZING IN FORCE THE CATEGORY Launched in 2023, Launch expected Q2 2024 off to a strong start 32 *2022 SEO Global Cordless Category Analysis: Top 6 Most
Slide 33: KitchenAid Entering the Espresso Category in Force in 2024
KitchenAid Entering the Espresso Category in Force in 2024 SEMI-AUTOMATIC WITH BURR GRINDER FULLY AUTOMATIC 33
Slide 34: KitchenAid Direct to Consumer Channel Established
KitchenAid Direct to Consumer Channel Established During Pandemic Continues to Get Stronger Consistent Growth and Relevance D2C Net Sales Balance of Sales (BOS)% D2C Net Sales BOS ~60% Net Sales CAGR (‘19 - ‘23) 2019 2023 2026 (3% BOS) (17% BOS) (25%+ BOS) Attract new consumers, grow Deliver a lifet
Slide 35: Long-Term Value Creation & Capital Allocation
Long-Term Value Creation & Capital Allocation Jim Peters EVP & Chief Financial Officer 35
Slide 36: Introducing 2026 Value Creation Targets
Introducing 2026 Value Creation Targets Net Sales Ongoing EBIT FCF ROIC Annual Organic Net Sales Ongoing Earnings Before Free Cash Flow Return on Growth Excluding Currency Interest and Tax, % of Net Sales as % of Net Sales Invested Capital 2026 Target ~$17.2B ~9.0% ~7.0% 9-11% 2024 Proforma ~$16.2B
Slide 37: Organic Growth and Margin Expansion Across All of Our Business Segments
Organic Growth and Margin Expansion Across All of Our Business Segments 2024 GUIDANCE 2026 TARGET Net Sales EBIT % Net Sales EBIT % MDA ~Flat ~9.0% 2-3% 11-12% North America (CAGR) MDA ~2.5% ~6.5% 3-4% ~8.0% Latin America (CAGR) MDA ~5.0% ~3.0% 5-6% ~7.0% Asia (CAGR) SDA Global ~7.5% ~15.5% ~10% ~16
Slide 38: Expecting Margin Expansion From Strong Cost Take Out Actions
Expecting Margin Expansion From Strong Cost Take Out Actions ONGOING EBIT MARGIN DRIVERS ~9% EBIT MARGIN IN 2026 350 - 400 bps (50-100 bps) • (~$200M) Negative price/mix in 2024, partially offset by new product ~100bps (100bps) introductions and improved discretionary demand ~9% • $300-$400M 2024 cos
Slide 39: Expecting $1.1B+ of Free Cash Flow in 2026
Expecting $1.1B+ of Free Cash Flow in 2026 Funding Balanced Capital Allocation FREE CASH FLOW DRIVERS EXPECTING $1.1B+ FCF IN 2026 $100-$200M $1,100M+ ~$100M • EMEA 2023 FCF consumption of ~$300M $200-$300M removed • Annual margin expansion delivering ~$100M of annual FCF $200-$300M • ~$100M working
Slide 40: History of Shareholder Friendly Capital Allocations
History of Shareholder Friendly Capital Allocations 5 YEAR CAPITAL ALLOCATION ($B) Shareholder Returns $3.9B $2.2B buybacks and $1.7B dividends ~$4B Inorganic Investments $3.1B InSinkErator & Elica India* acquisitions Returned to Shareholders in the Last 5 Years ~5% of sales reinvested (in line with
Slide 41: Clear Capital Allocation Priorities
Clear Capital Allocation Priorities • Invest ~6% of net sales in Capex & R&D 1 Fund Organic Growth • ~100+ new production introductions coming 2024 2 Fund Dividend • Guideline ~30% of multi-year ongoing EPS • ~2x net debt leverage target 3 Debt Service • Maintain investment grade credit rating Share
Slide 42: Fund Dividend
2 Fund Dividend Guideline: ~30% of Multi-Year Ongoing EPS Dividend as % of Ongoing EPS Dividends Declared ($) Average Returning Cash to Shareholders Through Steady or Increasing Dividends Since 1955 ~31% ~70 Years ~10% CAGR $1.75 10 year average of consecutive dividend / share Q1’24 in line with div
Slide 43: Significant Net Debt Leverage Improvement
3 Significant Net Debt Leverage Improvement InSinkErator Acquisition $8,000 Related Debt Whirlpool Total Debt ($M) $1B $5,500 of Debt $3,000 Reduction Year-End Net Expected: 2024 1.7 1.5 1.6 2.0 2.3 1.5 1.1 0.8 3.1 3.6 <3.5 <3.0 ~2.0 Debt Leverage vs. 2022 ~2X <3.5 $500M Net debt Expect net debt Debt
Slide 44: Well Balanced, Low Interest, Debt Ladder
3 Well Balanced, Low Interest, Debt Ladder Provides Flexibility & Value for Shareholders Debt By Maturity w/ Fixed Rate Weighted Avg. Interest Rate of ~3% Financing Arrangements ($M) Acquisition Related Term Loan $2.1B $2,000 Senior Notes due after 2030 $500 $0 2024 2025 2026 2027 2028 2029 2030 203
Slide 45: Strong Track Record of Share Buybacks
4 Strong Track Record of Share Buybacks ~ $8B Returned to shareholders since 2014 (including dividends) Past 10 Years $4.9B 30% $2.6B Share repurchase Cumulative Reduction in authorization share buybacks share count remaining 45
Slide 46: Opportunistic M&A Not A Priority in 2024
4 Opportunistic M&A Not A Priority in 2024 M&A Criteria Targeting immediately Margin 1 & FCF accretive acquisitions 2 High ROIC Targets Focus on Small Appliances & 3 Commercial Appliances However, debt 4 reduction and dividend remain 2024 priority 46
Slide 47: Recap | Three Reasons Why Whirlpool Is An Attractive Investment
Recap | Three Reasons Why Whirlpool Is An Attractive Investment A Very Different • Regional and local scale have gained importance over global scale 1 Portfolio of Business Provides Value Upside • Invest in our high margin businesses instead of restructuring • Expect discretionary demand recovery in
Slide 48: 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 48
Slide 49: Recap | Three Reasons Why Whirlpool Is An Attractive Investment
Recap | Three Reasons Why Whirlpool Is An Attractive Investment Organic Value Creation Achievable Long-Term A Very Different from Our North Value Creation Goals Portfolio of Business America and Global and Clear Capital Provides Value Upside SDA Business Allocation Priorities 49
Slide 50: Whirlpool Investor Day Appendix
Whirlpool Investor Day Appendix
Slide 51: Appendix Content
Appendix Content Our Business Segment Overview Committed to Delivering Strong Cost Position 51
Slide 52: Leading Appliance Manufacturer With 110+ Years of Improving Life at Home
Leading Appliance Manufacturer With 110+ Years of Improving Life at Home SALES BY SALES BY SEGMENT CATEGORY $19B MDA Asia 5% SDA Global 5% Dishwashing 2023 NET SALES, and Other AS REPORTED 19% MDA Latin America 17% Cooking 24% 59K MDA EMEA 18% EMPLOYEES Laundry 27% MDA North America 55 55% Refrigera
Slide 53: Our Vision: Be The Best Kitchen & Laundry Company
Our Vision: Be The Best Kitchen & Laundry Company, In Constant Pursuit of Improving Life at Home INSPIRE WIN GROW BUILD Generations with our With product Our consumer direct A competitive and brands leadership business resilient supply chain #1 share position 100+ products expected $1B+ D2C Net Sale
Slide 54: Improving Lives at Home Through Sustainable Products and Operations
Improving Lives at Home Through Sustainable Products and Operations, Supporting Our People, and Doing the Right Thing ENVIRONMENTAL SOCIAL GOVERNANCE & ETHICS Committing to Net Zero impact of our Investing in caring for our employees, Holding ourselves accountable to ensure operations by 2030. consu
Slide 55: Unparalleled Leader, Reaching Almost Every Country in the World
Unparalleled leader, reaching almost every country in the world with our unrivaled brands PROVEN TRACK BEST BRAND AND REGIONAL LEADING BEST COST RECORD OF PRODUCT SCALE POSITION INNOVATION PORTFOLIO #1 Whirlpool U.S Share Position #1 Whirlpool CANADA Share Position #1 Whirlpool * BRAZIL Share Positi
Slide 56: Regional Leading Scale With Top Positioning in Multiple Countries
Regional Leading Scale With Top Positioning in Multiple Countries CANADA #1 $0.8B Whirlpool Whirlpool UNITED STATES Share Position 2023 Revenue #1 $10.6B ~80% ~5M Whirlpool Whirlpool Appliance 2023 Industry Share Position 2023 Revenue Penetration Units INDIA ~90% ~52M Appliance 2023 Industry #3 $0.8
Slide 57: Proven Track Record of Our Innovation
Proven Track Record of Our Innovation… We’ve constantly innovated to care for consumers, many first-to-market innovations 1911 1949 1967 2006 2015 2020 2023 First Electric First Side-by-Side First Countertop French-Door Built-In Industry 1st 5-Door Largest Third Rack First Flush Built-In* Wringer Was
Slide 58: Best Brand and Product Portfolio
Best Brand and Product Portfolio Multiple Billion Dollar Brands Premium (~20%) Mass (~75%) Value (~5%) LEADING BRANDS ACROSS PRICE SEGMENTS * % of Net Sales (2023) Major Domestic Appliances & Adjacent Products Small Domestic Appliances STRONG PRODUCT INNOVATION *Elica PB Whirlpool Kitchen Appliances
Slide 59: Strong Cost Position With History of Cost Discipline
Strong Cost Position With History of Cost Discipline ~$500M FIXED COST REDUCTION SINCE 2019 -12% Fixed Costs (millions) 2019 2023 As Reported; Includes Factory, Logistics & SG&A Fixed Costs 2019* 2023 92K Employees 59K Employees 41 Manufacturing Plants 34 Manufacturing Plants 91M Square Feet 66M Squ
Slide 60: Appendix Content
Appendix Content Our Business Segment Overview Committed to Delivering Strong Cost Position 60
Slide 61: MDA North America | Segment Overview
MDA North America | Segment Overview REVENUE ($B) EBIT (%) 2023 REVENUE BY PRODUCT LEADING BRAND PORTFOLIO 23% 27% Dishwashing Refrigeration and Other* 22% Cooking 28% Laundry 61 *Other includes InSinkErator, consumer products, Gladiator, parts & accessories, extended service plans, licensing.
Slide 62: MDA North America Well Positioned For Further Organic Growth and Margin Expansion
MDA North America Well Positioned For Further Organic Growth and Margin Expansion #1 Share Position In the U.S. and Canada 2026 Expectations Total U.S. and Canada annual 57M+ Units appliance industry $10.8B ~$11.2B 2023 Revenue 2026 Revenue U.S. households with Whirlpool 2 out of 3 Homes appliances
Slide 63: Enhancing The Consumer Experience With Our Major Domestic Appliance Adjacent Product Portfolio
Enhancing The Consumer Experience With Our Major Domestic Appliance Adjacent Product Portfolio AFFRESH INSINKERATOR CLEANING PRODUCTS ~$550M GLADIATOR ~$400M PARTS & ACCESSORIES EXTENDED SERVICE PLAN & LICENSING ~$400M 63 Note: Figures represent 2023 Net Sales.
Slide 64: Whirlpool Well Positioned With Brand and Product Portfolio Regardless of Where Consumers Shop
Whirlpool Well Positioned With Brand and Product Portfolio Regardless of Where Consumers Shop Whirlpool North America Net Sales BOS % 100% ● Maintained or increased balance of sale across home improvement 75% retailers ● 10pt+ increase in national 50% builder share since 2015 Independent Retailers ●
Slide 65: MDA Latin America | Segment Overview
MDA Latin America | Segment Overview REVENUE ($B) EBIT (%) 2023 REVENUE BY PRODUCT LEADING BRAND PORTFOLIO 14% 44% Dishwashing and Other* Refrigeration 13% 29% Cooking Laundry 65 *Other includes spare parts, water filters and subscriptions, air conditioning.
Slide 66: MDA Latin America Well Positioned With Two Exceptional Brands
MDA Latin America Well Positioned With Two Exceptional Brands #1 Share Position In Latin America 2026 Expectations Total Brazil and Mexico annual 20M+ Units industry $3.4B ~$3.7B 2023 Revenue 2026 Revenue #1 and #3 Most Brastemp #1; Consul #3 and is Preferred Brands* found in 55%+ of Brazilian homes
Slide 67: MDA Asia | Segment Overview
MDA Asia | Segment Overview REVENUE ($B) EBIT (%) 2023 REVENUE BY PRODUCT LEADING BRAND PORTFOLIO 13% 48% Dishwashing and Other** Refrigeration * 9% 30% Cooking Laundry *Under license from Elica SpA, Italy. 67 **Other includes spare parts, warranties, and air treatment.
Slide 68: MDA Asia Value Creation Opportunity in India
MDA Asia Value Creation Opportunity in India With GDP Growth & Low Appliance Penetration #3 Share Position In India 2026 Expectations 26M+ Units Total India annual industry $1.0B ~$1.1B 2023 Revenue 2026 Revenue Appliance penetration has ~25% Penetration increased ~5% since 2019 Portion of 2023 MDA
Slide 69: High Single-Digit Revenue CAGR and EBIT Margin Expected in India Over the Long Term
High Single-Digit Revenue CAGR and EBIT Margin Expected in India Over the Long Term EXPECTING POSITIVE INDUSTRY WELL POSITIONED FOR SHIFTING TREND TO CONTINUE CONSUMER DEMAND WITH STRONG (4-6% INDUSTRY GROWTH IN 2024) OPPORTUNITY IN COOKING India T2 Appliance Industry Whirlpool India Net Sales BOS %
Slide 70: SDA Global | Segment Overview
SDA Global | Segment Overview REVENUE ($B) EBIT (%) 2023 REVENUE BY REGION PREMIUM PRODUCT PORTFOLIO 6% 5% Latin Asia America 69% 20% North EMEA America 70
Slide 71: SDA Global With Strong Margins and Industry Leading Mixer
SDA Global With Strong Margins and Industry Leading Mixer #1 Mixer Brand* Demonstrated product leadership 2026 Expectations 4.5 Stars Stand mixer rating** $1.0B ~$1.3B 2023 Revenue 2026 Revenue 10+ New Product Fully automatic espresso machine, Launches in 2024 rice cooker & more expected $40M invest
Slide 72: Appendix Content
Appendix Content Our Business Segment Overview Committed to Delivering Strong Cost Position 72
Slide 73: Global Manufacturing Locations
Global Manufacturing Locations NORTH AMERICA 10 Major Domestic Appliance Plants ASIA 1 Small Domestic Appliance Plant 6 Major Domestic Appliance Plants* Amana, IA Racine, WI Ottawa, OH Findlay, OH Fall River, MA Newton, IA Clyde, OH Tulsa, OK Marion, OH Greenville, OH Nanjing, China Faridabad, India
Slide 74: Local Leading Scale Enables Strong Cost Position
Local Leading Scale Enables Strong Cost Position SCALE LEADING OPERATIONS ADVANCED PRODUCTIVITY TOOLS 2023 2024* Mega Factory Global Production System Embarked on our global World-Class 5 5 (>3M units) Manufacturing initiative in 2017, with ~50% of factories at or above bronze Number of Key Global F
Slide 75: End-to-End Supply Chain and Manufacturing Excellence
End-to-End Supply Chain and Manufacturing Excellence PRODUCTIVITY: Further strengthen World Class Manufacturing methodology and World Class expect to deliver 100+bps annual net Manufacturing cost take out and efficiency gains Increase supply chain resiliency through dual sourcing and part complexity r
Slide 76: Strong Focus on Cost Composition and Drivers of Net Cost Take Out
Strong Focus on Cost Composition and Drivers of Net Cost Take Out COGS: ~$13B ~80% Variable ~5% RESEARCH & ~10% DEVELOPMENT: LOGISTICS: Investment in our Balancing SG&A: ~$1.6B innovative products capacity, cost ~25% and service MANUFACTURING / QUALITY: ADMINISTRATION: Automation and Organizational
Slide 77: Delivering Net Cost Benefit of the Last Years
Delivering Net Cost Benefit 8 of the Last 10 Years… $1.7B+ NET COST TAKE OUT SINCE 2015 $300-$400M Net Cost Take Out (millions) cost take out expected in 2024 and additional actions through 2026 77 Note: Net cost take out only. Negative figures represent cost reduction.
Slide 78: With Significant Cost Take Out Opportunity Remaining From Raw Materials Inflation
… With Significant Cost Take Out Opportunity Remaining From Raw Materials Inflation ~$2.5B INCREASE IN 2021 AND 2022 Raw Materials Inflation (millions) Significant opportunity to reset cost base after $2.5B in raw material increases in 2021 and 2022 Note: Raw materials inflation only. Positive figures rep
Slide 79: Why Whirlpool Is An Attractive Investment
Why Whirlpool Is An Attractive Investment Free Cash Flow Funding the Business Returning Cash Profitable Growth Margin Expansion Conversion through Innovation to Shareholders ~$17.2 BILLION ~9% $1.1+ BILLION FCF 9%-11% ROIC ~$4 BILLION 2026 Net Sales 2026 Ongoing EBIT Margin 2026, ~7% of Net Sales 202
Slide 80: 2026 Value Creation
2026 Value Creation 2024 GUIDANCE* 2026 TARGET NET SALES ~$16.9B ~$17.2B ONGOING EBIT ~$1.15B ~$1.6B % OF NET SALES ~6.8% ~9% INTEREST EXPENSE ~$350M ~$250M ADJUSTED EFFECTIVE TAX RATE ~0% 20%-25% FREE CASH FLOW $550-$650M $1.1B+ CASH TAX RATE ~20% ~15% 80 *Includes Q1 2024 for MDA Europe.
Slide 81: Whirlpool Investor Day Supplemental Information
Whirlpool Investor Day Supplemental Information
Slide 82: EMEA Operating Profit
EMEA Operating Profit The reconciliation provided below reconciles the non-GAAP financial measure EMEA ongoing business segment operating profit (loss) with the most directly comparable GAAP financial measure, EMEA segment operating profit (loss), for the twelve months ended December 31, 2014. Operating
Slide 83: EMEA EBIT
EMEA EBIT The reconciliation provided below reconciles the non-GAAP financial measures EMEA ongoing earnings before interest and taxes, with the most directly comparable GAAP financial measure, EMEA earnings before interest and taxes, for the twelve months ending December 31, 2016 and 2015. Earnings b
Slide 84: EMEA Free Cash Flow
EMEA Free Cash Flow EMEA free cash flow is cash provided by (used in) operating activities after capital expenditures and proceeds from sale of assets through 2021. The reconciliation provided below reconciles twelve months ended December 31, 2023, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014
Slide 85: Whirlpool Free Cash Flow
Whirlpool Free Cash Flow Free cash flow is cash provided by (used in) operating activities after capital expenditures. The reconciliation provided below reconciles twelve months ended December 31, 2023 and 2024 full-year guidance free cash flow with cash provided by (used in) operating activities, the
Slide 86: 2024 Ongoing EBIT & EPS
2024 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and net earnings per di
Slide 87: 2023 Ongoing EBIT & EPS
2023 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings
Slide 88: 2022 Ongoing EBIT & EPS
2022 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings
Slide 89: 2021 Ongoing EBIT & EPS
2021 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and net earnings per di
Slide 90: 2020 Ongoing EBIT & EPS
2020 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings
Slide 91: 2019 Ongoing EBIT & EPS
2019 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and net earnings per di
Slide 92: 2018 Ongoing EBIT & EPS
2018 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and net earnings per di
Slide 93: 2017 Ongoing EBIT & EPS
2017 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and net earnings per di
Slide 94: 2016 Ongoing EBIT & EPS
2016 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and n
Slide 95: 2015 Ongoing EBIT & EPS
2015 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and n
Slide 96: 2014 Ongoing EBIT & EPS
2014 Ongoing EBIT & EPS The reconciliation provided below reconciles the non-GAAP financial measures ongoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and n
Slide 97: Net Debt Leverage
Net Debt Leverage(Page 1 of 3) The reconciliation provided below reconciles the non-GAAP financial measure net debt leverage. The company defines Net debt leverage as net debt divided by ongoing earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio is net debt outstandin
Slide 98: Net Debt Leverage
Net Debt Leverage (Page 2 of 3) Earnings before interest, taxes, depreciation, and 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 amortization reconciliation: Reported measure (EBIT) $916 $(1,056) $2,499 $1,636 $1,717 $217 $1,049 $1,275 $1,196 $1,046 Acquisition related transition costs - - - - -
Slide 99: Net Debt Leverage
Net Debt Leverage (Page 3 of 3) Gross debt outstanding 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Long-term debt $6,414 $7,363 $4,929 $5,059 $4,140 $4,046 $4,392 $3,876 $3,470 $3,544 Current maturities of long-term debt 800 248 298 298 559 947 376 560 508 234 Notes payable 17 4 10 12 294 1034