Slide 1: First-Quarter 2024 Earnings Review
First-Quarter 2024 Earnings Review Thursday, April 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: Executive Summary
Executive Summary ● North America slow start from promotional environment & sticky inflation ○ Announced ~5% increase to all MDA promotional program prices ● Cost take out slower than anticipated; first wave of organizational simplification complete ● Strong performance in SDA Global and MDA Latin Amer
Slide 5: 2024 First-Quarter Results
2024 First-Quarter Results PROFITABLE GROWTH Net Sales YoY Change ● Net sales decline ~3% with strong share gains in Latin America $4.5B (3.4)% and flat share in North America (4.4)% ex-currency ● On track for $300-$400M of full-year cost take out; ~$100M in Q1 MARGIN EXPANSION Ongoing EBIT YoY Chang
Slide 6: Ongoing EBIT Margin Drivers
Ongoing EBIT Margin Drivers (Approximate impact) Q1 2023 Ongoing EBIT Margin 5.4% Price/Mix -3.75 Net Cost* +2.25 Raw Material Inflation nm Marketing & Technology Investments nm Currency +0.50 2024 Ongoing EBIT Margin 4.3% *Inclusive of Fixed Cost Take Out, Ongoing Cost Productivity (Including Conver
Slide 7: MDA North America First-Quarter Results
MDA North America First-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN -8% -49% -4.5pts Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 ● Flat share year-over-year & slightly up sequentially ● Net sales decrease resulting from negative price/mix and industry decline of ~2% ● EBIT impacted by p
Slide 8: Sticky Inflation Leading to Slower Ramp in Incremental Cost Actions in North America
Sticky Inflation Leading to Slower Ramp in Incremental Cost Actions in North America GLOBAL COST BASE 2019 - 2024 $2B ● Elevated cost base from unprecedented $2.5B of inflation in 2021 through 2022 ● Sticky inflation persistent in 2024 Net Cost & RMI ($M) $1B ○ Raw materials, logistics, and labor costs
Slide 9: North America Promotional Environment and Actions To Expand Margins
North America Promotional Environment and Actions To Expand Margins ● H2 2023 promotional environment carried over into Q1 ○ Limited incremental discretionary demand from promotional activity ● Took action to reduce promotional investments: ○ ~5% increase of all promotional program prices ○ New prom
Slide 10: MDA Europe First-Quarter Results
MDA Europe First-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN -5% -80% -0.5pts Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 ● Continued demand weakness ● EBIT margins impacted by negative price/mix ● Europe transaction closed April 2024 as expected 10
Slide 11: MDA Latin America First-Quarter Results
MDA Latin America First-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN 12% 81% 3.0pts Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 ● Net sales increased ~8% excluding currency ● Strong share gains throughout the region more than offset unfavorable price/mix ● EBIT margins expanded by increme
Slide 12: MDA Asia First-Quarter Results
MDA Asia First-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN -2% 38% 1.3pts Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 ● Increased volumes from share gains ● Net sales excluding currency down ~2% with unfavorable price/mix ● EBIT margin expansion driven by cost actions partially offset by
Slide 13: SDA Global First-Quarter Results
SDA Global First-Quarter Results NET SALES ($B) EBIT ($M) EBIT MARGIN 7% 74% 6.9pts Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 ● Net sales growth throughout key countries and direct to consumer business ● Continued momentum from new product introductions ● EBIT margins driven by cost actions an
Slide 14: Continuing to Win With Product Leadership
Continuing to Win With Product Leadership KITCHENAID MAYTAG PETS KITCHENAID ACROS MAX FREE ESPRESSO DISHWASHER GRAIN AND STANDING RANGE MAKER RICE COOKER Fully automatic espresso Kill 99.99% of bacteria in Integrated scale and water The most powerful machine allows you to pet bowls.* The Pet Pro tan
Slide 15: Europe Transaction Closed April 1st, 2024
Europe Transaction Closed April 1st, 2024 DEFINITIVE REGULATORY TRANSACTION VALUE CONTRIBUTION REVIEWS CLOSE TIMING CREATION AGREEMENT Entered January ‘23 Competition Closed April 2024 Increased Margins Authorities Reviews and Free Cash Flow Complete ● Whirlpool has 25 percent ownership in new entit
Slide 16: Reaffirming 2024 Full Year Guidance
Reaffirming 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
Slide 17: 2024 Free Cash Flow Guidance
2024 Free Cash Flow Guidance (Approximate impact in millions) 2023 2024 Comments $1,100 - Cash Earnings and Other Operating Items $910 • Earnings Improvement $1,200 • Innovation, digital transformation and Capital Expenditures $(549) ~$(600) capacity investments Working Capital $37 ~$100 • Working c
Slide 18: 2024 Capital Allocation Priorities On Track
2024 Capital Allocation Priorities On Track 2024 Cash Expectations Clear Capital Allocation Priorities Beginning Cash ~$1.6B ● Q1 dividend paid, Q2 declared on Hand → Expect ~$400M* in 2024 2024 FCF $0.55 - $0.65B ● $500M of term loan repaid in April India share sale & pending Brastemp ~$0.5B ● ~$50
Slide 19: Closing Summary
Closing Summary ● Q1 largely in line with expectations, strong performances across our international regions and Global SDA ● Actions in place to address challenging North America macroeconomic environment and expand margins ● 2024 Cost take out actions on track to deliver $300-$400M ○ Organizationa
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 Europe* Net Sales (in billions) $19.5 $2.6 $16.9 $16.9 Ongoing EBIT (in millions) $1,191 $30 $1,162 ~$1,150 Ongoing EBIT Margin 6.1% 1.2% ~6.9% ~6.8% *Q2-Q4 historical segment financial data (unaudited) 21
Slide 22: 2024 Segment Guidance
2024 Segment Guidance Industry EBIT % MDA 0 - 2% ~9% North America MDA 0 - 3% ~6.5% Latin America MDA 4 - 6% ~3% Asia SDA Global 2 - 4% ~15.5% MDA Europe (1)% (1.1)% (Q1 Actuals) Total ~0 - 2% ~6.8% 22
Slide 23: Full-Year 2024 Ongoing EBIT Margin Guidance
Full-Year 2024 Ongoing EBIT Margin Guidance (Approximate impact) EBIT Margin Comments 2023 Ongoing EBIT Margin 6.1% Price/Mix -1.5 to -1.75 • ~5% promotional program actions • Cost actions expected to deliver $300 - $400M Net Cost* +1.75 benefit • Unfavorable recent commodity trends (resins, Raw Mate
Slide 24: Key Assumptions - Guidance
Key Assumptions - Guidance Income Statement FY2023 FY2024E Raw Material (Inflation) / Deflation $460M nm Restructuring Costs* $16M ~$50M Interest Expense $351M ~$350M Corporate Center $200M ~$200M Weighted-Average Diluted Shares Outstanding 55.2M 54.9M** GAAP Earnings per Diluted Share $8.72 $5.00 - $
Slide 25: Interest and Sundry (Income) Expense
Interest and Sundry (Income) Expense Q1 (Approximate impact in millions) 2023 2024 Comments • Includes foreign exchange and hedge Net Foreign Exchange $12 ($5) (gain)/loss • 2024 interest income and LAR tax provision Interest (Income) Expense/Other 65 (23) adjustment • 2023 legacy EMEA legal matters
Slide 26: Restructuring Cash Outlays
Restructuring Cash Outlays (Approximate impact in millions) 2023 2024E Comments COVID-19 Related Actions $20 $0 Other Initiatives $12 ~$50 ● Primarily due to organizational simplification Total $32 ~$50 Note: Numbers may not reconcile due to rounding 26
Slide 27: Whirlpool
Whirlpool Whirlpool KitchenAid JENNAI? MAYIAG AMANA BRASTEMP' Consul inQDertor