Whirlpool Corporation · NYSE:WHR
Whirlpool — Investor Presentation (November 2011)
27 slides from Whirlpool's investor presentation, Nov 2, 2011
Slide 1: Whirlpool Corporation November 2011
WHIRLPOOL CORPORATION November 2011 Exhibit 99.1
Slide 2: Company Overview
COMPANY OVERVIEW World’s #1 major appliance company $18+ billion in revenue Products sold in more than 130 countries Every Home…Everywhere
Slide 3: Strong Foundation + Growth = Long-Term Value Creation
#1 Major Appliance Company Strongest Brand Portfolio Best Distribution Leading Scale STRONG FOUNDATION + GROWTH = Long-Term Value Creation Geographic expansion Product innovation Adjacent Businesses Product line/ Channel share growth
Slide 4: Significant Opportunity to Grow Core Product Leadership and Expand Adjacencies
EXTEND THE CORE EXPAND BEYOND THE CORE Products or services that are dependent on and related to our core business Stand-alone businesses that leverage our core competencies and core business infrastructure GROW THE CORE T-12 major appliances SIGNIFICANT OPPORTUNITY TO GROW CORE PRODUCT LEADERSHIP A
Slide 5: Global Share with Broad Distribution
#1 North America #1 Latin America #2 India #3 Europe GLOBAL SHARE WITH BROAD DISTRIBUTION 0% 2% 4% 6% 8% 10% 12% 14% 16%
Slide 6: Global Leader More Diversified Than Ever Before
GLOBAL LEADER MORE DIVERSIFIED THAN EVER BEFORE 2014 (est.)
Slide 7: Significant Growth Opportunities
SIGNIFICANT GROWTH OPPORTUNITIES Current Average Penetration % Global Appliance Market ~$120 Billion 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% United States Western Europe Middle East Central & Eastern Europe Mexico Latin America China India
Slide 8: Unmatched U.S. Consumer Reach
HIGHER LOWER Willingness to pay 5% 30% 21% 9% 22% UNMATCHED U.S. CONSUMER REACH Consumer Target Segment % of Total Whirlpool Corporation’s Brand Portfolio Can Reach More Than 85% of Consumers, Most Consumer-Preferred Brands
Slide 9: Strong International Assets
STRONG INTERNATIONAL ASSETS Leading brand portfolio Leading emerging market position #1 in Latin America appliance #1 in Global Compressors #2 in India Platform for growth in China Superior economies of scale Leveraging global capabilities in local regions Strong local management base We have develo
Slide 10: Strong and Growing Presence in Emerging Markets
STRONG AND GROWING PRESENCE IN EMERGING MARKETS 2011 YTD Nearly 2/3 of International Revenue is Derived From Emerging Markets
Slide 11: Q3 2011 Review
Whirlpool Confidential Q3 2011 REVIEW Slowing global economy … weakening global demand U.S. consumer confidence declined to 2009 levels European financial crisis has deepened Slowdown in emerging markets Elevated raw material prices … reached record levels during quarter Implementing cost and capaci
Slide 12: Business Priorities
Whirlpool Confidential BUSINESS PRIORITIES Expand operating margins Accelerate innovative new product launches Reduce structural costs and production capacity Implement previously announced cost-based price increases Fair trade actions Positioning the company for margin expansion in a volatile deman
Slide 13: Q3 2011 Results Overview
Sales Diluted EPS (GAAP) Adjusted Diluted EPS* Free Cash Flow YTD** $4.6B $2.27 $2.35 $(0.7)B $4.5B $1.02 $2.22 $(0.0)B Change $0.1B $1.25 $0.13 $(0.7)B Q3 2011 RESULTS OVERVIEW * Adjusted EPS is a non-GAAP measure. See appendix slide 22 & 23 ** Free Cash Flow is a non-GAAP measure. See appendix sli
Slide 14: Structural Cost Reduction Actions
Comprehensive global review of our operations, products and manufacturing locations Targets high-cost locations with product segments that have low profitability Concentrates production in best-cost locations Positions company to achieve long-term operating margin target STRUCTURAL COST REDUCTION AC
Slide 15: Structural Cost Reduction Actions
STRUCTURAL COST REDUCTION ACTIONS Implementation has begun Reduce Fixed Costs 2012 - Workforce Reduction >5,000 Manufacturing Capacity Reduction ~6 million units Restructuring Charges Q4 2011 – ~$500 million ~$400 million
Slide 16: Cost & Capacity Reduction Initiatives
~$87M ~$237M ~$109M ~$18M ~$43M ~$6M $- $50 $100 $150 $200 $250 $300 Q411 Non-Cash Charge Cash Charge ~$105M ~$280M ~$115M COST & CAPACITY REDUCTION INITIATIVES ~$500M restructuring expense
Slide 17: Efficiencies of Cost & Capacity Reduction Initiatives
$- $50 $100 $150 $200 $250 $300 $350 $400 Annualized EFFICIENCIES OF COST & CAPACITY REDUCTION INITIATIVES • >5,000 headcount reduction • ~6 million unit capacity reduction • ~$400M annualized cost reduction
Slide 18: Long-Term Value Creation Targets
Shareholder Value Creation Targets LONG-TERM VALUE CREATION TARGETS Macroeconomic assumptions are critical elements in setting our long-range financial goals +5 – 7% Revenue Growth 8% Operating Margin +10 – 15% EPS Growth 4 – 5% FCF % to Sales
Slide 19: Operating Margin Drivers
Fixed cost and capacity reduction initiatives announced today Ongoing productivity initiatives Improved price mix driven by innovation and cost-based price increases Adjacent business growth Pace of industry demand recovery OPERATING MARGIN DRIVERS
Slide 20: 2011 Earnings Guidance
2011 EARNINGS GUIDANCE $7.25 - $8.25 $4.75 - $5.25 ~$ – Incremental Restructuring Offset by Non-Operating Items* Global Industry Demand Productivity Cost Take-out (Conversion Cost Impacted by Lower Demand) Country and Product Mix Previous Guidance Latest Guidance ~$(0.55) ~$(0.90) ~$(0.80) * Supplie
Slide 21: Appendix
APPENDIX
Slide 22: Adjusted Operating Profit, Earnings Before Tax and EPS (Q3 2011)
The reconciliation provided below reconciles the non-GAAP financial measures adjusted operating profit, adjusted earnings before tax and adjusted diluted earnings per share, with the most directly comparable GAAP financial measures, reported operating profit, earnings before income taxes and other i
Slide 23: Adjusted Operating Profit, Earnings Before Tax and EPS (Q3 2010)
The reconciliation provided below reconciles the non-GAAP financial measures adjusted operating profit, adjusted earnings before tax and adjusted diluted earnings per share, with the most directly comparable GAAP financial measures, reported operating profit, earnings before income taxes and other i
Slide 24: 2011 Outlook Adjusted Diluted EPS
2011 OUTLOOK - ADJUSTED DILUTED EARNINGS PER SHARE: Current GAAP Guidance 4.75 $ - 5.25 $ Brazilian Collection Dispute 3.70 - 3.70 Embraco Antitrust Matters 1.13 - 1.13 Supplier Quality Issue Recovery (0.06) - (0.06) Adjusted Non-GAAP Measure 9.52 $ - 10.02 $ 2011 Outlook Adjusted Diluted EPS
Slide 25: Free Cash Flow (Actual and 2011 Outlook)
As defined by the company, free cash flow is cash provided by operating activities after capital expenditures and proceeds from the sale of assets/businesses. The reconciliation provided below reconciles actual nine-month 2011 and 2010 and projected 2011 full-year free cash flow with actual and proj
Slide 26: Additional Information
WHIRLPOOL ADDITIONAL INFORMATION: 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
Slide 27: Whirlpool Corporation 2011
Whirlpool! CORPORATION 2011