Slide 1: First-Quarter 2020 Earnings Review
First-Quarter 2020 Earnings Review Friday, May 1, 2020
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 Marc Bitzer Chairman and Chief Executive Officer 3 Whirlpool Corporation First-Quarter 2020 Earnings Review 3
Slide 4: Supporting Our People, Consumers & Communities
SUPPORTING OUR PEOPLE, CONSUMERS & COMMUNITIES Keeping Our Delivering Our Essential Investing in Our People Safe Products to Consumers Communities ● Global cross-functional task ● Took decisive actions and ● Leveraged global supply chain to force in place since January implemented business procure m
Slide 5: Strong Q1 Results and Financial Agility to Protect Margins and Liquidity Throughout 2020
STRONG Q1 RESULTS AND FINANCIAL AGILITY TO PROTECT MARGINS AND LIQUIDITY THROUGHOUT 2020 ▪ Strong and resilient Q1 results despite impact of COVID-19 ▪ Continue to take proactive actions to mitigate volume deleveraging and sustain operating margins ▪ Strong financial position with ample liquidity to
Slide 6: First-Quarter 2020
FIRST-QUARTER 2020 Jim Peters Executive Vice President and Chief Financial Officer Whirlpool Corporation First-Quarter 2020 Earnings Review 6
Slide 7: 2020 First-Quarter Highlights
2020 FIRST-QUARTER HIGHLIGHTS Profitable Growth YoY ▪ Resilient overall performance despite growing impact of COVID-19 Net Sales Change $4.3B (9.1)% (0.3)% organic(4) ▪ Delivered strong ongoing EPS(1) of $2.82 and approximately flat Margin Expansion ongoing EBIT(1) margin Ongoing YoY EBIT Margin(1) Ch
Slide 8: Q1 2020 Ongoing EBIT Margin Drivers
Q1 2020 ONGOING EBIT MARGIN(1) DRIVERS (Approximate impact) Q1 2019 Ongoing EBIT Margin 6.3% Price / Mix -1.75 Net Cost (excluding Raw Material/Tariff Inflation)* +0.75 Raw Material/Tariff Inflation +1.00 Marketing & Technology Investments +0.25 Currency -0.50 2020 Ongoing EBIT Margin 6.1% *Inclusive
Slide 9: Regional First-Quarter Overview
REGIONAL FIRST-QUARTER OVERVIEW Net Sales EBIT(3) EBIT Margin(3) North $2.5B | 0% $303M | (3)% 11.9% | (0.4)pts America Europe, Middle $0.9B | (12)% $(15)M | 29% (1.7)% | 0.4pts East & Africa Latin $0.6B | (29)% $31M | (30)% 5.1% | 0.0pts America *Q1 2019 Embraco net sales of $312M *Q1 2019 Embraco
Slide 10: 2020 Perspective
2020 PERSPECTIVE Marc Bitzer Jim Peters Chairman and Executive Vice President Chief Executive Officer and Chief Financial Officer Whirlpool Corporation First-Quarter 2020 Earnings Review 10
Slide 11: Addressing Key Questions for 2020
ADDRESSING KEY QUESTIONS FOR 2020 Topic Current Perspective Shape of the ● Anticipate a U-type recovery throughout 2020 Recovery ● Expect full-year 2020 organic net sales decline of 10%-15% Sustaining Operating ● Entering crisis from a stronger starting position Margins ● Taking decisive and strong
Slide 12: Initial China Data Points Towards U-Shaped Demand Pattern
INITIAL CHINA DATA POINTS TOWARDS U-SHAPED DEMAND PATTERN 2020 YEAR # new COVID-19 cases N/A N/A N/A t (week) Industry sell-out vs. last year [%] Source: Johns Hopkins Coronavirus Resource Center; AVC monitoring market Whirlpool Corporation First-Quarter 2020 Earnings Review 12
Slide 13: Italy Sell-Out Trends In-Line with China
ITALY SELL-OUT TRENDS IN-LINE WITH CHINA 2020 YEAR # new COVID-19 cases N/A N/A N/A N/A N/A N/A N/A t (week) Whirlpool sell-out vs. last year [%] Source: Johns Hopkins Coronavirus Resource Center; Whirlpool sell-out data provided by external retailers Whirlpool Corporation First-Quarter 2020 Earning
Slide 14: U.S. Demand Trends Also In-Line, But Less Pronounced
U.S. DEMAND TRENDS ALSO IN-LINE, BUT LESS PRONOUNCED 2020 YEAR # new COVID-19 cases N/A N/A N/A N/A N/A N/A N/A N/A N/A t (week) Whirlpool sell-out vs. last year [%] Source: Johns Hopkins Coronavirus Resource Center; Whirlpool sell-out data provided by external retailers Whirlpool Corporation First-
Slide 15: Stronger Margin Profile Leading Into Crisis...
STRONGER MARGIN PROFILE LEADING INTO CRISIS... Ongoing EBIT(1) % Quarters following crisis start Crisis start: Q3 2008 / Q1 2020 Entering Crisis From a Structurally Improved Position Due to Disciplined Fixed Cost Management Note: 2008 - 2010 margin data represents Operating Profit + Interest and Sund
Slide 16: ...With Decisive Actions to Sustain Margins
...WITH DECISIVE ACTIONS TO SUSTAIN MARGINS ▪ Continue to adjust supply chain and labor levels to match demand environment ▪ Aggressively reduce structural and discretionary costs ▪ Capture raw material deflation opportunities ▪ Continue to effectively and efficiently manage working capital Targeting >
Slide 17: Ample Liquidity to Cope With Any Scenario
AMPLE LIQUIDITY TO COPE WITH ANY SCENARIO ● $2.8B cash on balance sheet as of 3/31/20 Liquidity ● $1.3B remaining on $3.5B facility, in place through August 2024 ● $0.7B in other committed facilities, including recently executed $0.5B 364-Day facility ● Ample buffers to withstand multiple scenarios
Slide 18: Well-Positioned for Recovery
WELL-POSITIONED FOR RECOVERY Rebound Actions Long-Term Growth Opportunities Well-prepared to capitalize on demand recovery Positioned for future growth over the long-term ▪ Operations positioned for swift ▪ Uniquely structured to capture ramp up post-crisis demand changes ▪ Leverage leadership posit
Slide 19: Executive Summary
EXECUTIVE SUMMARY ▪ Took decisive action to ensure health and safety of our employees and their families ▪ Proactively taking actions to mitigate volume deleveraging and sustain operating margins ▪ Strong financial position with ample liquidity to weather this crisis ▪ Well-positioned to win in the e
Slide 20: Q&A and Closing Remarks
Q&A AND CLOSING REMARKS Whirlpool Corporation First-Quarter 2020 Earnings Review 20
Slide 21: Whirlpool Corporation
Whirlpool Whirlpool Corporation
Slide 22: Appendix
APPENDIX Whirlpool Corporation First-Quarter 2020 Earnings Review 22
Slide 23: Q1 Organic Net Sales Reconciliation
Q1 ORGANIC NET SALES(4) RECONCILIATION (Approximate impact in millions) Q1 2019 Q1 2020 Change Comments Net Sales $4,760M $4,325M (9.1)% Less: Embraco Net Sales $(312) $0 • Embraco sale completed July 1, 2019 Add-Back: Currency n/a $108 • Primarily BRL Organic Net Sales $4,448M $4,433M (0.3)% Whirlp
Slide 24: Q1 Organic Net Sales Reconciliation Latin America Region
Q1 ORGANIC NET SALES(4) RECONCILIATION LATIN AMERICA REGION (Approximate impact in millions) Q1 2019 Q1 2020 Change Comments Net Sales $875M $618M (29.4)% Less: Embraco Net Sales $(312) $0 • Embraco sale completed July 1, 2019 Add-Back: Currency n/a $76 • Primarily BRL Organic Net Sales $563M $694M
Slide 25: Embraco Compressor Business Historical Financials / Gain Calculation
EMBRACO COMPRESSOR BUSINESS HISTORICAL FINANCIALS / GAIN CALCULATION As disclosed in quarterly reports on Form 10-Q: (In USD millions) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Net Sales $296 $285 $266 $288 $312 $323 EBIT $7 $9 $21 $17 $24 $23 ● On April 24, 2018, entered purchase agreement wi
Slide 26: Interest and Sundry (Income) Expense
INTEREST AND SUNDRY (INCOME) EXPENSE Q1 (Approximate impact in millions) 2019 2020 Comments Net Foreign Exchange $(3) $(7) ● Includes foreign exchange and hedge (gain)/loss Interest (Income)/Other $7 $6 ● Primarily factoring and bank fees Sub-Total $4 $(1) One-Time Items: Brazil Indirect Tax Credit*
Slide 27: Earnings Before Interest and Taxes Reconciliation
EARNINGS BEFORE INTEREST AND TAXES RECONCILIATION Whirlpool Corporation First-Quarter 2020 Earnings Review 27
Slide 28: COVID-19 Response Plan Summary
COVID-19 RESPONSE PLAN SUMMARY Sustain Operating Margin Protect Liquidity Win the Recovery ● Stronger Margin Profile Leading Into ● Ample Liquidity to Cope With Any ● Rebound Actions Crisis Scenario ○ Operations positioned for swift ramp up ○ Took strong actions in prior cycles ○ Strong Liquidity Pos
Slide 29: 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, and ongoing EBIT margin Other non-GAAP financial mea