Slide 1: Third-Quarter 2023 Earnings Review
Third-Quarter 2023 Earnings Review THURSDAY, OCTOBER 26, 2023
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: Third-Quarter Results
Third-Quarter Results Whirlpool Corporation Confidential Marc Bitzer Jim Peters CHAIRMAN AND EXECUTIVE VICE CHIEF EXECUTIVE PRESIDENT AND CHIEF OFFICER FINANCIAL OFFICER
Slide 5: Agenda
Agenda Operational priorities delivering margin expansion and share gains Business performance and 2023 guidance update Portfolio transformation unlocking significant value creation 5
Slide 6: Solid 2023 Third-Quarter Results
Solid 2023 Third-Quarter Results PROFITABLE GROWTH Net Sales YoY Change ● Net sales growth of ~3% ○ 1pt+ North America share gains $4.9B 3.0% ○ Strong replacement and builder demand (1.1%) organic ○ Normalized promotional environment MARGIN EXPANSION ● 100 basis points of year-over-year ongoing EBIT
Slide 7: Ongoing EBIT Margin Drivers
Ongoing EBIT Margin Drivers Q2’23 vs Q3’22 vs (Approximate impact) Q3’23 Q3’23 Ongoing EBIT Margin 7.3% 5.5% Price/Mix -1.50 -3.75 Net Cost* +0.25 +3.25 Raw Material Inflation +0.75 +3.00 Marketing & Technology Investments -0.25 -0.75 Currency nm -0.75 2023 Ongoing EBIT Margin 6.5% 6.5% *Inclusive of
Slide 8: Operational Priorities are Fully on Track
Operational Priorities are Fully on Track Improved Supply Chain Substantial Cost Reduction Delivering Share Gains $500M ● Flawless execution of supply chain Net Cost & RMI ($M) ● Expansion of dual sourcing $0M ● Strong focus on complexity reduction & simplification $800M+ $(500)M 8
Slide 9: Agenda
Agenda Operational priorities delivering margin expansion and share gains Business performance and 2023 guidance update Portfolio transformation unlocking significant value creation 9
Slide 10: North America Third-Quarter Results
North America Third-Quarter Results Sequential Year-over-Year NET SALES ($B) 5% 4% ● Over 1 point of year-over-year share gains; U.S. industry up ~7% Q2 2023 Q3 2023 Q3 2022 Q3 2023 ● EBIT positively impacted by 6% 3% InSinkErator integration EBIT ($M) ● Sustained double digit margins of Q2 2023 Q3
Slide 11: North America Positioned to Deliver Growth and Margin Expansion
North America Positioned to Deliver Growth and Margin Expansion Delivering the Growing Premium Leading Builder Share Product Leadership Brand Promise Share Builders #1 Choice Superior Full Seamless Digital Reduce Cost & Deliver Sustainability Product Experience Consumer Business Complexity Targets P
Slide 12: Continuing to Win With Product Leadership
Continuing to Win With Product Leadership ● Leading innovation delivering on consumer needs PREMIUM TOP ● Maytag Pets Innovation “Partner of the year” at Lowe’s LOAD LAUNDRY ● Only laundry manufacturer with 2-in-1 agitator capabilities ● Superior aesthetics and craftsmanship FRENCH DOOR ● Strong in
Slide 13: EMEA Third-Quarter Results
EMEA Third-Quarter Results Sequential Year-over-Year NET SALES ($B) 1% -4% ● Net Sales decline ~2%, excluding Russia, with continued demand weakness across key countries Q2 2023 Q3 2023 Q3 2022 Q3 2023 ● Cost take out actions and held EBIT ($M) for sale benefits driving EBIT -94% nm margin expansion
Slide 14: Latin America Third-Quarter Results
Latin America Third-Quarter Results Sequential Year-over-Year NET SALES ($B) 5% 14% ● Excluding currency, ~10% net sales increase year-over-year Q2 2023 Q3 2023 Q3 2022 Q3 2023 ● Strong share gains and industry 2% 35% recovery in Brazil and Mexico EBIT ($M) ● Cost take out actions delivering sustain
Slide 15: Asia Third-Quarter Results
Asia Third-Quarter Results Sequential Year-over-Year NET SALES ($B) -22% -11% ● Excluding currency, net sales decline ~8% year-over-year Q2 2023 Q3 2023 Q3 2022 Q3 2023 ● Soft consumer sentiment continues to impact demand EBIT ($M) -55% -58% ● EBIT margins impacted by unfavorable price/mix partially
Slide 16: 2023 Guidance
2023 Guidance PROFITABLE GROWTH MARGIN EXPANSION CASH CONVERSION LONG-TERM GOALS 5-6% 11-12% 7-8% ONGOING EARNINGS BEFORE INTEREST FREE CASH FLOW ANNUAL ORGANIC NET SALES GROWTH AND TAX, % OF NET SALES AS % OF NET SALES Net Sales YoY Change Ongoing EBIT YoY Change Free FCF as % of Margin Cash Flow N
Slide 17: 2023 Regional Guidance
2023 Regional Guidance Industry EBIT % Previous Current Previous Current North (6) - (4)% 1-2% ~11.5% ~10% America Europe, Middle East (6) - (4)% (8) - (6)% ~1.5% ~1% & Africa Latin (3) - (1)% 0 - 2% ~7% ~6% America Asia 2 - 4% (3) - (2)% ~5.5% ~3% Total ~(3)% ~0% ~7.25% 6.25 - 6.5% 17
Slide 18: Agenda
Agenda Operational priorities delivering margin expansion and share gains Business performance and 2023 guidance update Portfolio transformation unlocking significant value creation 18
Slide 19: Portfolio Transformation to Unlock Significant Value Creation
Portfolio Transformation to Unlock Significant Value Creation THREE STRONG PILLARS SMALL MAJOR COMMERCIAL APPLIANCES APPLIANCES APPLIANCES GROW, ALSO INORGANICALLY STRENGTHEN + REFOCUS GROW, ALSO INORGANICALLY More Global in Nature Win in Americas Structurally Attractive (#1 Position) & B2B Business
Slide 20: EMEA Transaction Clears Major Regulatory Hurdle; Timing of Closure Uncertain
EMEA Transaction Clears Major Regulatory Hurdle; Timing of Closure Uncertain We are Here DEFINITIVE STRATEGIC REGULATORY TRANSACTION VALUE CONTRIBUTION REVIEW REVIEWS CLOSE TIMING CREATION AGREEMENT Announced April ’22 Entered January ‘23 Competition Close by April 2024 Increased Margins Authorities
Slide 21: EMEA Transaction to Unlock Significant Value Creation
EMEA Transaction to Unlock Significant Value Creation ● Retaining 25% stake(2) in a newly formed European appliance company ● $750M+ net present value of predictable cash flows of Whirlpool brand and potential monetization of minority interest ● Post closing, expect improved EBIT margins by ~150 basis
Slide 22: Well Positioned for Future Growth and Margin Expansion
Well Positioned for Future Growth and Margin Expansion ● Operational priorities delivering 100 basis points of margin expansion and 1 point of North America share gains ● Strong cost take out action on track to deliver full-year benefit of $800M+ with carryover benefits in 2024 ● Europe transaction ex
Slide 23: Closing Remarks and Q&A
and Q&A Closing Remarks Whirlpool Corporation Confidential
Slide 24: Ongoing EBIT Margin Guidance
Ongoing EBIT Margin Guidance (Approximate impact) Previous Current Comments 2022 Ongoing EBIT Margin 6.9% 6.9% • Promotional environment normalizing to Price/Mix -2.50 -3.50 pre-pandemic levels • Strong cost take out actions delivering ~$500M Net Cost* +2.50 +2.50 benefit • Expect ~$300 - $400M of ma
Slide 25: 2023 Free Cash Flow Guidance
2023 Free Cash Flow Guidance (Approximate impact in millions) 2022 2023 Comments Previous Current Cash Earnings and Other Operating Items $1,236 ~$1,400 ~$1,200 • Innovation, digital transformation and Capital Expenditures $(570) ~$(600) ~$(600) capacity investments Working Capital $194 ~$25 ~($75)
Slide 26: Key Assumptions - Guidance
Key Assumptions - Guidance Income Statement FY2022 FY2023E Raw Material (Inflation) / Deflation $(1.5)B ~$300 - $400M * Restructuring Costs $15M Interest Expense $190M ~$365M Adjusted Effective Tax Rate 4.4% (5) - 0% Weighted-Average Diluted Shares Outstanding 56.5M 55.3M** Cash Flow Statement FY2022 F
Slide 27: Interest and Sundry (Income) Expense
Interest and Sundry (Income) Expense Q3 (Approximate impact in millions) 2022 2023 Comments • Includes foreign exchange and hedge Net Foreign Exchange $6 $9 (gain)/loss Interest (Income) Expense/Other (26) (20) Equity Method Investment Income (Loss)* 2 1 Interest and Sundry (Income) Expense $(17) ($
Slide 28: Restructuring Cash Outlays
Restructuring Cash Outlays (Approximate impact in millions) 2022 2023E Comments COVID-19 Related Actions $10 $15 Naples Closure 3 - • Naples, Italy manufacturing facility Other Initiatives 27 10 • Primarily previously executed actions Total $40 ~$25 Note: Numbers may not reconcile due to rounding 28
Slide 29: 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