Slide 1: Second Quarter 2022 Earnings Review
Second Quarter 2022 Earnings Review TUESDAY, JULY 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: 2022 Second-Quarter Results
2022 Second-Quarter Results PROFITABLE GROWTH Net Sales YoY Change ▪ Solid Q2 performance, despite elevated cost inflation and demand slowdown $5.1B (4.3)% (2.3)% ex-currency ▪ Delivered ongoing EPS(1) of $5.97 and ongoing EBIT margin(1) of 9.0%, with 14% margins in North America, demonstrating the r
Slide 5: Ongoing EBIT Margin Drivers
Ongoing EBIT Margin(1) Drivers (Approximate impact) Q2 2021 Ongoing EBIT Margin 11.4% Price/Mix +6.75 Net Cost* -1.75 Raw Material Inflation -7.50 Marketing & Technology Investments nm Currency nm 2022 Ongoing EBIT Margin 9.0% *Inclusive of Fixed Cost Takeout, Ongoing Cost Productivity (Including Con
Slide 6: Regional Overview
Regional Overview Whirlpool Corporation Confidential Joe Liotine PRESIDENT AND CHIEF OPERATING OFFICER
Slide 7: North America Second-Quarter Results
North America Second-Quarter Results ▪ Industry volumes down 6% year over year, largely offset by strong execution of pricing actions ▪ EBIT performance of 14.1% despite cost inflation increases peaking ▪ Demand fundamentals remain intact with appliance usage holding at elevated levels 7
Slide 8: EMEA Second-Quarter Results
EMEA Second-Quarter Results ▪ Demand negatively impacted by War in Ukraine; revenue decline, excluding currency, of 10.3% ▪ EBIT impacted by lower volumes and cost inflation, partially offset by cost-based price increases ▪ Strategic review of EMEA progressing 8
Slide 9: Russia Business Divestiture
Russia Business Divestiture ▪ Signed share purchase agreement with Arcelik, closing expected in Q3 ▪ Non-recurring charges of $747M reflected in Q2 results ○ $346M primarily Russia asset write-down ○ $384M goodwill and intangible asset impairment in EMEA region ○ Other M&A related charges, including
Slide 10: Latin America Second-Quarter Results
Latin America Second-Quarter Results ▪ Revenue driven by strong execution of cost-based price increases fully offsetting industry decline ▪ EBIT impacted by cost inflation partially offset by pricing actions ▪ Strong EBIT margin performance 10
Slide 11: Asia Second-Quarter Results
Asia Second-Quarter Results ▪ Revenue increase driven by strong volume growth compared to last year's Covid-related shutdowns in India ▪ Top-line growth and pricing actions fully offsetting cost inflation ▪ Significant EBIT improvement (+$19M) 11
Slide 12: 2022 Guidance & Business Update
2022 Guidance & Business Update Whirlpool Corporation Confidential Marc Bitzer Jim Peters CHAIRMAN AND EXECUTIVE VICE PRESIDENT CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
Slide 13: 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 14: 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 in place Price/Mix +7.25 +7.25 • Product launches driving price/mix • Accelerated ongoing cost reduction initiatives *
Slide 15: 2022 Regional Guidance
2022 Regional Guidance Industry EBIT % Previous Current Previous Current North ~0% (7) - (5)% ~16% ~15% America Europe, Middle East (5) - (3)% unchanged ~0% unchanged & Africa Latin (4) - (2)% unchanged ~7% unchanged America Asia 5 - 6% unchanged ~6% unchanged Total (2) - 0% (6) - (4)% ~9.5% ~9.0% 1
Slide 16: 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 $2,200 $2,000 Operating Items • Innovation, digital transformation and Capital Expenditures $(525) $(700) $(600) capacity investments Working Capital $68 $(200) $(100)
Slide 17: Executive Summary
Executive Summary ▪ Global actions in place for strong second half of 2022 ○ Cost inflation expected to peak Q2/Q3 ○ Previously announced price increases fully executed ○ Strong cost actions already initiated, including hiring freezes and cost-reduction initiatives ▪ Long-term demand fundamentals rem
Slide 18: Closing Remarks and Q&A
and Q&A Closing Remarks Whirlpool Corporation Confidential
Slide 19: 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 20: Key Assumptions - Guidance
Key Assumptions - Guidance Income Statement FY2021A FY2022E Previous Current Raw Material (Inflation) / Deflation $(1.0)B ~$(1.5) - (1.75)B ~$(1.5) - (1.75)B *** *** Restructuring Costs $38M Interest Expense $176M ~$175M ~$175M Adjusted Effective Tax Rate 23.5% 24 - 26% 21 - 23% Weighted-Average Dilute
Slide 21: Interest and Sundry (Income) Expense
Interest and Sundry (Income) Expense Q2 (Approximate impact in millions) 2021 2022 Comments • Includes foreign exchange and hedge Net Foreign Exchange $(3) $8 (gain)/loss Interest (Income)/Other (33) (27) • Interest income and prior year LAR tax credit Interest and Sundry (Income) Expense $(36) $(19
Slide 22: 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 23: 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 24: 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 24