Slide 1: First-Quarter 2022 Earnings Review, Portfolio Transformation & Strategic Review of EMEA
First-Quarter 2022 Earnings Review, Portfolio Transformation & Strategic Review of EMEA TUESDAY, APRIL 26, 2022
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: Global Overview
Global Overview Whirlpool Corporation Confidential Marc Bitzer CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Slide 4: Executive Summary
Executive Summary ▪ Solid Q1 ongoing EPS(1) of $5.31, fundamentally stronger than pre-pandemic levels ○ Q1 cost inflation of over $400M ○ EBIT(1) margin above 9%, with NAR sustaining very strong margins of over 16% ▪ Actions in place to deliver strong second half of 2022 ○ Increased cost inflation exp
Slide 5: 2022 First-Quarter Results
2022 First-Quarter Results PROFITABLE GROWTH ▪ Solid performance in Q1 against prior-year record Q1 Net Sales YoY Change $4.9B (8.2)% ▪ While revenues are comping negatively against record Q1 2021, they are organically (4) (6.9)% ex-currency up over 17% against 2019 and 2020 MARGIN EXPANSION ▪ Deliv
Slide 6: Ongoing EBIT Margin Drivers
Ongoing EBIT Margin(1) Drivers (Approximate impact) Q1 2021 Ongoing EBIT Margin 12.4% Price/Mix +6.00 Net Cost* -2.50 Raw Material Inflation -7.00 Marketing & Technology Investments +0.50 Currency nm 2022 Ongoing EBIT Margin 9.4% *Inclusive of Fixed Cost Takeout, Ongoing Cost Productivity (Including
Slide 7: Regional Overview
Regional Overview Whirlpool Corporation Confidential Joe Liotine PRESIDENT AND CHIEF OPERATING OFFICER
Slide 8: North America First-Quarter Results
North America First-Quarter Results ▪ Industry volumes down 4% year over year, up 24% compared to 2019 ▪ EBIT performance of 16.3% despite inflation and operating inefficiencies ▪ Previously announced cost-based price increases on track including additional actions effective in Q2 8
Slide 9: Industry Trends Support Continued Growth
Industry Trends Support Continued Growth Historical Growth Rates: 1950 - 2000 ~2.5% 2000 - 2020 1-2% Usage Trends (post pandemic): Cooking: 2.5X Laundry: 1.3X Note: Graph reflects AHAM trailing 12 month volume by quarter
Slide 10: EMEA First-Quarter Results
EMEA First-Quarter Results ▪ Demand negatively impacted by Russia/Ukraine conflict; Revenue decline, excluding currency, of 0.5% ▪ The impact from our operations in Russia and Ukraine resulted in ~$16M EBIT decline year-over-year ▪ EBIT impacted by inflation, partially offset by cost-based price increa
Slide 11: Latin America First-Quarter Results
Latin America First-Quarter Results ▪ Revenue growth driven by cost-based price increases ▪ EBIT impacted by inflation partially offset by top-line results ▪ Strong EBIT margin performance 11
Slide 12: Asia First-Quarter Results
Asia First-Quarter Results ▪ Revenue decline of 5%, excluding the Whirlpool China* divestiture ▪ EBIT impacted by lower revenue and inflation partially offset by cost-based price increases ▪ Covid-related impacts in India eased late in the quarter *Partial tender offer for Whirlpool China closed May 6,
Slide 13: 2022 Perspective
2022 Perspective Whirlpool Corporation Confidential Jim Peters EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 14: Perspective on External Environment in 2022
Perspective on External Environment in 2022 FIRST HALF SECOND HALF ● Demand temporarily impacted by ● Underlying strength in consumer supply and macroeconomic disruptions demand trends intact ● Accelerated and pronounced inflation - ● Additional price increases announced, notably RMI, energy and logi
Slide 15: 2022 Guidance
2022 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(1) Cash Flo
Slide 16: Full-Year 2022 Ongoing EBIT Margin Guidance
Full-Year 2022 Ongoing EBIT Margin(1) Guidance (Approximate impact) Previous Current Comments 2021 Ongoing EBIT Margin 10.8% 10.8% • Previously announced cost-based price increases coupled with the disciplined execution of go-to-market actions Price/Mix +6.00 +7.25 • Positive consumer trends and pro
Slide 17: 2022 Regional Guidance
2022 Regional Guidance Industry EBIT % Previous Current Previous Current North 2 - 3% ~0% ~16% unchanged America Europe, Middle East 0 - 2% (5) - (3)% ~3% ~0% & Africa Latin (4) - (2)% unchanged ~8% ~7% America Asia 5 - 6% unchanged ~8% ~6% Total ~2% (2) - 0% ~10.5% ~9.5% 17
Slide 18: 2022 Free Cash Flow Guidance
2022 Free Cash Flow(2) Guidance (Approximate impact in millions) 2021 2022 Comments Previous Current Cash Earnings and Other $2,254 $2,450 $2,200 Operating Items • Innovation, digital transformation and Capital Expenditures $(525) $(700) $(700) capacity investments Working Capital $68 $(200) $(200)
Slide 19: Portfolio Transformation & Strategic Review of EMEA
Portfolio Transformation & Strategic Review of EMEA Marc Bitzer CHAIRMAN AND CHIEF EXECUTIVE OFFICER 19
Slide 20: Why a Portfolio Transformation?
Why a Portfolio Transformation? WE ARE EXPERIENCING A DIFFERENT, FOCUS ON HIGH GROWTH, HIGH LESS GLOBAL WORLD MARGIN BUSINESSES We Are Positioning Whirlpool For The New World Transforming Global Business Portfolio ▪ Decoupling of global economies creating a ▪ Our value creation bar has been raised ‘
Slide 21: Transforming Global Business Portfolio
Transforming Global Business Portfolio THREE STRONG PILLARS SMALL APPLIANCES MAJOR APPLIANCES COMMERCIAL APPLIANCES (GROW, ALSO INORGANICALLY) (STRENGTHEN + REFOCUS) (GROW, ALSO INORGANICALLY) ● More global in nature ● Invest in ‘Win Americas’ (#1 position) ● Structurally attractive business ● Serve
Slide 22: Strategic Review of Our EMEA Business
Strategic Review of Our EMEA Business EMEA BUSINESS RECOVERY $5 BILLION 2% EBIT ● Margin recovery progressing in sales in 2021 EBIT Margins in 2021 ○ 2021 EBIT margins of 2%, from (2%) in 2018 ● Accelerating revenue with share gains in key countries 10 17,400 manufacturing ○ #1 share position in key
Slide 23: Whirlpool Portfolio Transformation
Whirlpool Portfolio Transformation ▪ Assessing long-term value creation opportunities in EMEA ○ All options are being assessed ○ Completion of review expected by end of Q3 2022 ▪ Different World, Different Whirlpool ○ Invest in businesses that support accelerated growth and high margins ○ Focus in the
Slide 24: Closing Remarks and Q&A
and Q&A Closing Remarks Whirlpool Corporation Confidential
Slide 25: Industry Trends Support Continued Growth
Industry Trends Support Continued Growth Industry Volumes (T6 in millions) Historical Growth Rates: 1950 - 2000 ~2.5% 2000 - 2020 1-2% Usage Trends (post pandemic): Cooking: 2.5X Laundry: 1.3X Note: Graph reflects annual AHAM volume for 1950 to 2000 and Trailing 12 months by quarter for 2001 to 2022
Slide 26: 2022 Capital Allocation Strategy
2022 Capital Allocation Strategy 1. Fund Innovation and Growth Target/Update Capital Expenditure Invest ~3% of net sales Research and Development Invest ~3% of net sales Mergers & Acquisitions Value creating M&A to support portfolio strategy 2. Return to Shareholders Target/Update Dividends ~30% of
Slide 27: Key Assumptions - Guidance
Key Assumptions - Guidance Income Statement FY2021A FY2022E Previous Current Raw Material (Inflation) / Deflation $(1.0)B ~$(1.0) - (1.25)B ~$(1.5) - (1.75)B *** *** Restructuring Costs $38M Interest Expense $176M ~$175M ~$175M Adjusted Effective Tax Rate 23.5% 24 - 26% 24 - 26% Weighted-Average Dilute
Slide 28: Interest and Sundry (Income) Expense
Interest and Sundry (Income) Expense Q1 (Approximate impact in millions) 2021 2022 Comments • Includes foreign exchange and hedge Net Foreign Exchange $(11) $14 (gain)/loss Interest (Income)/Other (15) (16) • Primarily interest income Interest and Sundry (Income) Expense $(26) $(2) Note: Numbers may
Slide 29: Restructuring Cash Outlays
Restructuring Cash Outlays (Approximate impact in millions) 2021 2022E Comments COVID-19 Related Actions $61 $15 Naples Closure 69 10 • Naples, Italy manufacturing facility Other Initiatives 16 25 • Primarily previous executed actions Total $146 ~$50 Note: Numbers may not reconcile due to rounding 2
Slide 30: Asia Net Sales Reconciliation
Asia Net Sales Reconciliation (Approximate impact in millions) Q1 2021 Q1 2022 Change Comments Net Sales $411 $285 (30.7)% • Partial tender offer for Whirlpool China closed Less: Whirlpool China Divestiture 112 - - May 6, 2021 Net Sales less divestiture $299 $285 (4.8)% Note: Numbers may not reconcil
Slide 31: Q1 Organic Net Sales Reconciliation
Q1 Organic Net Sales(4) Reconciliation (Approximate impact in millions) Q1 2020 Q1 2022 Change Comments Net Sales $4,325 $4,920 13.8% • Partial tender offer for Whirlpool China closed Less: Whirlpool China Divestiture (64) - - May 6, 2021 Add-Back: Currency - 79 - Organic Net Sales $4,261 $4,999 17.3
Slide 32: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, some of which we refer to as “ongoing” (1) measures: Ongoing earnings per diluted share, earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, and ongoing EBIT margin Other non-GAAP finan
Slide 33: Benton Harbor, Michigan; Pero, Italy; Hong Kong, China; São Paulo, Brazil
BENTON HARBOR, MICHIGAN PERO (MILAN), ITALY HONG KONG, CHINA SÃO PAULO, BRAZIL * Whirlpool Corporation ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas 33