Whirlpool Corporation · NYSE:WHR
Whirlpool — Bank of America Merrill Lynch 2017 Consumer & Retail Technology Conference
23 slides from Whirlpool's conference presentation, Mar 14, 2017
Slide 1: 2017 Investor Meetings First-Quarter
2017 INVESTOR MEETINGS FIRST-QUARTER Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings
Slide 2: Whirlpool Corporation Additional Information
WHIRLPOOL CORPORATION ADDITIONAL INFORMATION This presentation 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 i
Slide 3: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES This presentation includes certain non-GAAP financial measures, which we refer to as “ongoing business”(1) measures: Ongoing business operating profit (loss), ongoing business operating margin, ongoing business earnings per diluted share, ongoing business EBIT, ong
Slide 4: Value-Creation Strategy
VALUE-CREATION STRATEGY 2010 – 2014 2015 – 2018 • Growth • 30% Larger Global Platform • Margin Expansion • Product and Brand Innovation • Cash Generation • Best Cost Structure Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 4
Slide 5: A Fundamentally Different Company
A FUNDAMENTALLY DIFFERENT COMPANY … 2000 2016 Doubled in Size Net Sales $10B $21B N America Sales ~60% ~50% Balanced Geographic Mix # of value-creating 2 4 regions OEM revenue ~20% ~5% A Branded Company # of $1B+ brands 1 7 Global Scale Plants 43 42 Whirlpool Corporation - Confidential First-Quarter
Slide 6: With a Strong Track Record of Performance
… WITH A STRONG TRACK RECORD OF PERFORMANCE Ongoing Earnings per Diluted Share(1) $14.06 $12.38 $11.39 $10.02 $7.05 $2.05 2011 2012 2013 2014 2015 2016 2011 – 2016 ONGOING EARNINGS PER SHARE GROWTH RATE OF 47% Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 6
Slide 7: Leading Position by Region
LEADING POSITION BY REGION #1 #1 In 5 of Top 8 #1 Countries Western Company #1 EVERY HOME … EVERYWHERE Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 7
Slide 8: Strongest Brand Portfolio
STRONGEST BRAND PORTFOLIO Premium * Mass Value OUR BRANDS REACH OVER 90% OF CONSUMERS, INCLUDING 7 WITH OVER $1B IN SALES Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 8
Slide 9: Value Creation Drivers
VALUE CREATION DRIVERS Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 9
Slide 10: Long-Term Value Creation Opportunity
LONG-TERM VALUE CREATION OPPORTUNITY Global leading market share position Winning brand and product portfolio Best cost global operating platform Emerging markets opportunity Strong underlying cash generation PROVEN ABILITY TO DELIVER SHAREHOLDER RETURNS IN ANY ENVIRONMENT Whirlpool Corporation - Co
Slide 11: U.S. Multi-Year Demand Growth
U.S. MULTI-YEAR DEMAND GROWTH US T7 Industry Units (in thousands) 52,000 ~+3% 50,000 +4-6% 48,000 +6% 46,000 +6% 44,000 +6% 42,000 +9% 40,000 38,000 36,000 34,000 2,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F Whirlpool Corporation - Confidential
Slide 12: Leading Brands Available Where People Shop
LEADING BRANDS AVAILABLE WHERE PEOPLE SHOP Strong Balance of Sales in Each U.S. Channel Diverse Portfolio (WHR Share in Sales Channel) of Brands 2016 Estimate Big Box Retailers Key Accounts Independent Retailers Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 12
Slide 13: Reduced Cost Base Enables Margin Expansion
REDUCED COST BASE ENABLES MARGIN EXPANSION Margin Expansion from U.S. Demand Growth 120 110 U.S. Demand (T-6) 100 90 80 70 Whirlpool’s U.S. Breakeven volume 60 2008 2009 2010 2011 2012 2013 2014 2015 2016 Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 13
Slide 14: Leading Share Positions Across Europe
LEADING SHARE POSITIONS ACROSS EUROPE Position in Top 8 Countries Whirlpool Country by Size Position Germany United Kingdom France Russia Turkey Italy Spain Poland Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 14
Slide 15: Strong Cost Synergies Planned Through 2018
STRONG COST SYNERGIES PLANNED THROUGH 2018 $100M $130M $120M $350M SG&A / Engineering Product / Operational Platform Procurement Synergies + Manufacturing plan in Italy approved + Legal entity mergers proceeding as planned + Purchasing agreements signed INTEGRATION PROGRESS ON TRACK: DELIVERED $250M
Slide 16: Brazil Remains Challenging … Margins Stabilized
BRAZIL REMAINS CHALLENGING … MARGINS STABILIZED Latin America Operating Margins Stabilized and Improving 12% 8% 7% 7% 6% 6% 6% 4% 4% 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 MANAGING SHORT-TERM CHALLENGES: RIGHT-SIZED FIXED COST STRUCTURE Whirlpool Corporation - Confidential First-Quarter 2017 I
Slide 17: Large Appliance Penetration Growth Potential
LARGE APPLIANCE PENETRATION GROWTH POTENTIAL Appliance Household Penetration 100% 98% 88% 58% 53% 55% 65% 1% 1% LAR LAR LAR Int’l Int’l Int’l Refrigeration Laundry Dishwashing EACH PERCENT INCREASE IN PENETRATION IS WORTH $145M IN NET SALES FOR WHIRLPOOL Whirlpool Corporation - Confidential First-Qu
Slide 18: Asia Region … Strong Demand Potential
ASIA REGION … STRONG DEMAND POTENTIAL Appliance Demographics Appliance Unit Volumes (middle class growth rate) Penetration 49.3 36% 22% China CAGR through 2020 26% 16% 13.2 India CAGR through 2020 EACH PERCENT INCREASE IN PENETRATION IS WORTH $140M IN NET SALES FOR WHIRLPOOL Whirlpool Corporation -
Slide 19: Long-Term Value Creation Framework
LONG-TERM VALUE CREATION FRAMEWORK Annual Organic Net Sales Growth 3-5% EBIT % (by 2020) 10%+ Annual EPS Growth 10-15% Free Cash Flow (by 2018) 5-6% of Net Sales (~85% FCF Conversion) STRONG TRACK RECORD OF MANAGING THROUGH VOLATILITY AND CREATING LONG-TERM SHAREHOLDER VALUE Whirlpool Corporation -
Slide 20: 2017 Capital Allocation Strategy
2017 CAPITAL ALLOCATION STRATEGY Priorities Guidelines Fund the Business • Capital investment: 3.5% of sales Targeted Capital Structure • Approximately 1.5x Debt / EBITDA target Dividends • 25 – 30% trailing 12 month earnings (guideline) Share Repurchase • $700M authorization remaining as of 12/31/1
Slide 21: Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings
Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 21
Slide 22: Appendix
APPENDIX Whirlpool Corporation - Confidential First-Quarter 2017 Investor Meetings 22
Slide 23: Index of Supporting Data
INDEX OF SUPPORTING DATA Slide Slide Title Notes 6 With a strong track record of Ongoing business earnings per diluted share is a non-GAAP measure. For years 2011- performance 2016 please refer to our fourth-quarter earnings press release, for each respective year, located in the financial informati
Whirlpool — Bank of America Merrill Lynch 2017 Consumer & Retail Technology Conference on 6ix