Slide 1: First-Quarter 2018 Earnings Review
First-Quarter 2018 Earnings Review 2018 | Whirlpool Corporation First-Quarter Earnings Review
Slide 2: Global Overview
GLOBAL OVERVIEW Marc Bitzer President and Chief Executive Officer 2018 | Whirlpool Corporation First-Quarter Earnings Review 2
Slide 3: 2018 First-Quarter Highlights
2018 FIRST-QUARTER HIGHLIGHTS ▪ Delivered ongoing EBIT(1) improvement and record first-quarter ongoing EPS(1) ▪ Previously-announced cost-based price increases contributed to positive global price/mix ▪ Fixed cost reduction actions completed and fully on-track ▪ Growth and margin expansion in North
Slide 4: Progress Toward Long-Term Goals
PROGRESS TOWARD LONG-TERM GOALS Profitable Growth Margin Expansion Cash Conversion 3-5% 10% 5-6% Annual Organic Net Sales Growth EBIT Margin (by 2020) FCF as % of Net Sales (by 2018) YoY Ongoing YoY Free FCF as % Net Sales Change EBIT Margin(1) Change Cash Flow(2) of Net Sales Q1 2018 $4.9B 2.6% 6.0
Slide 5: Q1 2018 Ongoing EBIT Margin Drivers
Q1 2018 ONGOING EBIT MARGIN(1) DRIVERS Q1 2017 Ongoing EBIT Margin 6.0% Price / Mix +1.0 Fixed Cost Takeout +0.25 Ongoing Cost Productivity & Restructuring Benefits +0.5 Raw Material Inflation -1.5 Currency -0.25 2018 Ongoing EBIT Margin 6.0% Approximate Impact 2018 | Whirlpool Corporation First-Qua
Slide 6: Key Performance Driver: Product Price/Mix
KEY PERFORMANCE DRIVER: PRODUCT PRICE/MIX Region Q1 2018 Q1 2018 Drivers Total Company +1.0% • Realized benefits of price/mix actions on U.S. kitchen North America Up • Price/mix improved sequentially throughout Q1 • Realized benefits of price/mix actions EMEA Up • Targeted reduction of certain priv
Slide 7: Regional Overview
REGIONAL OVERVIEW Jim Peters Executive Vice President and Chief Financial Officer 2018 | Whirlpool Corporation First-Quarter Earnings Review 7
Slide 8: North America First-Quarter Results
NORTH AMERICA FIRST-QUARTER RESULTS Net Sales ($B) EBIT(3) ($M) EBIT Margin(3) +3% +5% +0.2pts $2.4 $2.5 $275 $288 11.2% 11.4% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 ▪ Solid revenue growth driven by unit volume and positive price/mix ▪ EBIT margin(3) improvement driven by positive price/mix
Slide 9: EMEA First-Quarter Results
EMEA FIRST-QUARTER RESULTS Net Sales ($B) EBIT(3) ($M) EBIT Margin(3) +3% -16% -0.2pts $1.0 $1.1 -$23 -2.3% -$27 -2.5% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 ▪ Price/mix improvement offset by unit volume declines ▪ Renegotiated a number of unfavorable trade agreements ▪ Raw material inflati
Slide 10: Latin America First-Quarter Results
LATIN AMERICA FIRST-QUARTER RESULTS Net Sales ($M) EBIT(3) ($M) EBIT Margin(3) -3% -14% -0.9pts $921 $898 $66 7.2% $57 6.3% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 ▪ Solid appliance results more than offset by lower industry and soft global compressor results ▪ Strong appliance price/mix dri
Slide 11: Asia First-Quarter Results
ASIA FIRST-QUARTER RESULTS Net Sales ($M) EBIT(3) ($M) EBIT Margin(3) +3% -23% -1.4pts $435 $448 $24 5.6% $19 4.2% Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 ▪ Strong India performance with double digit unit volume growth and continued share gains ▪ Sequential EBIT(3) improvement in China drive
Slide 12: 2018 Guidance
2018 GUIDANCE INSERT INSERT PHOTO PHOTO HERE HERE Marc Bitzer Jim Peters President and Executive Vice President Chief Executive Officer and Chief Financial Officer 2018 | Whirlpool Corporation First-Quarter Earnings Review 12
Slide 13: 2018 Guidance Overview
2018 GUIDANCE OVERVIEW Profitable Growth Margin Expansion Cash Conversion 3-5% 10% 5-6% Annual Organic Net Sales Growth EBIT Margin (by 2020) FCF as % of Net Sales (by 2018) YoY Ongoing YoY Free FCF as % Net Sales Change EBIT Margin(1) Change Cash Flow(2) of Net Sales ~$21.5B ~1% ~7.5% ~1.1pts $1.0-
Slide 14: 2018 Ongoing EBIT Margin Progression
2018 ONGOING EBIT MARGIN(1) PROGRESSION Full-Year Comments 2017 Ongoing EBIT Margin 6.4% Global price/mix implementations on-track; Price / Mix +1.25 U.S. laundry cost-based pricing effective early Q2 Fixed Cost Takeout +0.75 Fully-implemented and on-track Ongoing Cost Productivity & Restructuring B
Slide 15: 2018 Regional Guidance
2018 REGIONAL GUIDANCE NAR 2018F EMEA 2018F EBIT% ~12%+ EBIT% ~2% Industry 2 – 3% Industry 1 – 2% ASIA 2018F LAR 2018F EBIT% ~5% EBIT% ~7% Industry 2 – 4% Industry 1 – 2% Regional Guidance Unchanged 2018 | Whirlpool Corporation First-Quarter Earnings Review 15
Slide 16: 2018 Free Cash Flow Drivers
2018 FREE CASH FLOW(2) DRIVERS Full-Year Comments 2017 Free Cash Flow $707M • Sustained benefit of global price/mix and fixed cost actions Cash Earnings ~$325M • Slightly reduced expectations for global revenue growth Working Capital ~$125M • Significant inventory reduction in North America and EMEA
Slide 17: 2018 Capital Allocation Strategy
2018 CAPITAL ALLOCATION STRATEGY Fund the Business Target Status Capex: ~3.5% of net sales • On-track Capex / R&D R&D: ~3% of net sales • On-track Explore value-creating M&A Mergers & Acquisitions to accelerate strategy • Continue to be opportunistic Return to Shareholders Target Status 25-30% of tr
Slide 18: Q&A and Closing Remarks
Q&A AND CLOSING REMARKS 2018 | Whirlpool Corporation First-Quarter Earnings Review 18
Slide 19: Summary of Key Messages
SUMMARY OF KEY MESSAGES ▪ Delivered ongoing EBIT(1) improvement and record first-quarter ongoing EPS(1) ▪ Global price/mix and fixed cost actions have been successfully implemented ▪ Remain committed to returning strong levels of cash to shareholders in 2018 2018 | Whirlpool Corporation First-Quarte
Slide 20: 2018 | Whirlpool Corporation First-Quarter Earnings Review
2018 | Whirlpool Corporation First-Quarter Earnings Review 20
Slide 21: Appendix
APPENDIX 2018 | Whirlpool Corporation First-Quarter Earnings Review 21
Slide 22: 2018 Guidance Components (Approximate Impact)
2018 GUIDANCE COMPONENTS (APPROXIMATE IMPACT) Income Statement FY2018E FY2017A Net Cost Takeout $150M $100M Gross Cost Takeout (inclusive of fixed cost reduction and restructuring benefits) $425M $450M Raw Material Inflation $(250) - (300)M $(350)M Restructuring Expense $200M $275M Interest Expense
Slide 23: Cautionary Statement
CAUTIONARY STATEMENT 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 in this presentation may i
Slide 24: 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”(1) measures: Ongoing earnings per diluted share, earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, ongoing EBIT margin, ongoing segment EBIT, ongoing