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2024 Earnings Review and 2025 Guidance Thursday, January 30, 2025
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2 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, but are not limited to, statements regarding future financial results, long-term value creation goals, restructuring expectations, productivity, raw material prices and related costs, supply chain, portfolio transformation expectations, asset impairment, debt repayment expectations, India transaction timing and benefits expectations, trade customer inventory expectations, and the impact of housing recovery-related benefits on our operations. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool's forward-looking statements. Among these factors are: (1) intense competition in the home appliance industry, and the impact of the changing retail environment, including direct-to-consumer sales; (2) Whirlpool's ability to maintain or increase sales to significant trade customers; (3) Whirlpool's ability to maintain its reputation and brand image; (4) the ability of Whirlpool to achieve its business objectives and successfully manage its strategic portfolio transformation; (5) Whirlpool’s ability to understand consumer preferences and successfully develop new products; (6) Whirlpool's ability to obtain and protect intellectual property rights; (7) acquisition, divestiture, and investment-related risks, including risks associated with our past acquisitions; (8) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (9) risks related to our international operations; (10) Whirlpool's ability to respond to unanticipated social, political and/or economic events, including epidemics/pandemics; (11) information technology system and cloud failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity attacks; (12) product liability and product recall costs; (13) Whirlpool's ability to attract, develop and retain executives and other qualified employees; (14) the impact of labor relations; (15) fluctuations in the cost of key materials (including steel, resins, and base metals) and components and the ability of Whirlpool to offset cost increases; (16) Whirlpool's ability to manage foreign currency fluctuations; (17) impacts from goodwill, intangible asset and/or inventory impairment charges; (18) health care cost trends, regulatory changes and variations between results and estimates that could increase future funding obligations for pension and postretirement benefit plans; (19) impacts from credit rating agency downgrades; (20) litigation, tax, and legal compliance risk and costs; (21) the effects and costs of governmental investigations or related actions by third parties; (22) changes in the legal and regulatory environment including environmental, health and safety regulations, data privacy, taxes and generative AI; (23) the impacts of changes in foreign trade policies, including tariffs; (24) Whirlpool's ability to respond to the impact of climate change and climate change or other environmental regulation; and (25) the uncertain global economy and changes in economic conditions. In addition, factors that could cause actual results to differ materially from our India transaction expectations include, among other things, failure or delays in launching transaction based on Board approval, market conditions or other factors, failure or delays in share settlement and closing, transaction proceeds being lower than expected, alternative uses for proceeds received, brand license valuation expectations not being met, and strategic, economic or industry expectations for India not being realized. Additional information concerning these and other factors can be found in "Risk Factors" in Item 1A of Whirlpool’s 2023 Form 10-K report. We undertake no obligation to update any forward-looking statement, and investors are advised to review disclosures in our filings with the SEC. It is not possible to foresee or identify all factors that could cause actual results to differ from expected or historic results. Therefore, investors should not consider the foregoing factors to be an exhaustive statement of all risks, uncertainties, or factors that could potentially cause actual results to differ from forward-looking statements.
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3 This presentation includes certain non-GAAP financial measures. We supplement the reporting of our financial information determined under U.S. Generally Accepted Accounting Principles (GAAP) with certain non-GAAP financial measures, some of which we refer to as "ongoing" measures, including: earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, ongoing EBIT margin, and ongoing earnings per diluted share. Other non-GAAP financial measures that may be included in this presentation are free cash flow, free cash flow as percentage of sales, adjusted effective tax rate, net debt leverage and return on invested capital (ROIC). Organic net sales: Sales excluding the impact of certain acquisitions or divestitures, and foreign currency. Management believes that organic net sales provides stockholders with a clearer basis to assess our results over time, excluding the impact of exchange rate fluctuations and certain acquisitions and/or divestitures. Slide 5 excludes full-year 2023 net sales from the divested EMEA business and foreign currency impact. Slide 6 excludes fourth quarter 2023 net sales from the divested EMEA business and foreign currency impact. Slide(s): 5, 6, 12, 25 Ongoing EBIT margin: Ongoing EBIT divided by net sales. Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses. Slide(s): 5, 6, 7, 12, 13, 24, 25 Segment EBIT: Consolidated EBIT broken down by the Company's reportable segments and are metrics used by the chief operating decision maker in accordance with ASC 280. Consolidated EBIT also includes corporate "Other/Eliminations" of $(507) million and $67 million for the fourth quarters of 2024 and 2023, respectively, and $(1,024) million and $(465) million for full-year 2024 and 2023, respectively. Management believes segment EBIT provides stockholders with a clearer basis to assess our results over time for each segment. Slide(s): 8, 9, 10, 11, 14 Ongoing interest and sundry (income) expense: Reported interest and sundry (income) expense adjusted to exclude certain unique items. Management believes that ongoing interest and sundry (income) expense provides stockholders with a meaningful, consistent comparison of the Company's interest and sundry (income) expense, excluding the impact of certain unique items. Slide(s): 27 Ongoing equity method income (loss): Reported equity method income (loss) adjusted to exclude equity method investee restructuring charges. Management believes that ongoing equity method income (loss) provides stockholders with a meaningful, consistent comparison of the Company's equity method income (loss), excluding the impact of equity method investee restructuring charges. Slide(s): 27 Ongoing earnings per diluted share: Diluted net earnings per share from continuing operations, adjusted to exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations. Ongoing measures provide a better baseline for analyzing trends in our underlying businesses. Slide(s): 5, 6, 12, 26 Free cash flow: Cash provided by (used in) operating activities less capital expenditures. Management believes that free cash flow and free cash flow as a percentage of sales provides stockholders with a relevant measure of liquidity and a useful basis for assessing Whirlpool's ability to fund its activities and obligations. Slide(s): 5, 6, 12, 17 Adjusted effective tax rate: Effective tax rate, excluding pre-tax income and tax effect of certain unique items. Management believes that adjusted tax rate provides stockholders with a meaningful, consistent comparison of the Company's effective tax rate, excluding the pre-tax income and tax effect of certain unique items. Slide(s): 12, 26 Net debt leverage: Net debt to ongoing earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is net debt outstanding, including long-term debt, current maturities of long-term debt, and notes payable, less cash and cash equivalents, divided by ongoing EBITDA. Management believes that net debt leverage provides stockholders with a view of our ability to generate earnings sufficient to service our debt. Slides: 18, 19 Please refer to the supplemental information pack located in the events section of our Investor Relations website at investors.whirlpoolcorp.com for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures. Whirlpool does not provide a Non-GAAP reconciliation for its forward-looking long-term value creation goals, such as organic net sales, ongoing EBIT, free cash flow conversion, ROIC and net debt leverage, as these long-term management goals are not annual guidance, and the reconciliation of these long-term measures would rely on market factors and certain other conditions and assumptions that are outside of the Company’s control. Non-GAAP Measures
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Whirlpool Corporation Confidential Jim Peters EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER Marc Bitzer CHAIRMAN AND CHIEF EXECUTIVE OFFICER 2024 Earnings Review and 2025 Guidance
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5 ● Delivered ongoing EPS of $12.21 ● Cost actions delivered ~$300M full-year benefit, as expected ● Free cash flow generation of $385M, impacted by Europe transaction ($275M) ● Paid ~$400M of dividends and $500M of debt reduction ● Significant portfolio transformation achievement with Europe transaction completed PROFITABLE GROWTH Net Sales YoY Change MARGIN EXPANSION CASH CONVERSION Ongoing EBIT Margin YoY Change (0.8) pts 5.3% Free Cash Flow FCF as % of Net Sales 2024 Full-Year Results $16.6B (14.6)% (0.4)% organic $385M 2.3%
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6 PROFITABLE GROWTH Net Sales YoY Change MARGIN EXPANSION CASH CONVERSION Ongoing EBIT Margin YoY Change 0.8 pts 6.0% Free Cash Flow FCF as % of Net Sales 2024 Fourth-Quarter Results ● ~2% organic net sales improvement with strong SDA Global and international growth ● Expanded ongoing EBIT margin year-over-year and sequentially by 80 bps and 20 bps, respectively ● Delivered ongoing EPS of $4.57 ● Paid $1.75 dividend per share in Q4 $4.1B (18.7)% 1.9% organic $385M 2.3%
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7 *Inclusive of Fixed Cost Take Out, Ongoing Cost Productivity (Including Conversion and Freight & Warehousing), Volume Leveraging, and Restructuring Benefits. Ongoing EBIT Margin Drivers (Approximate impact) Q4 2023 Ongoing EBIT Margin 5.2% Price/Mix -1.00 Net Cost* +1.75 Raw Material Inflation nm Marketing & Technology Investments -0.50 Currency -0.25 Europe Transaction +0.75 2024 Ongoing EBIT Margin 6.0%
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8 MDA NAR Fourth-Quarter and Full-Year Results NET SALES ($B)EBIT ($M)EBIT MARGIN -1.4pts Q4 2023 -19% Q4 2023 -1% Q4 2023 Q4 2024 COMMENTARY Q4 2024 Q4 2024 FY 2023 FY 2024 -5% -34% FY 2023 FY 2024 FY 2023 FY 2024 -2.9pts ● Strong consumer demand post-election ● Sizeable retailer destocking coupled with strong sell through in Q4, negatively impacted price/mix ● Delivered full-year EBIT margin largely in-line with guidance
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9 MDA LAR Fourth-Quarter and Full-Year Results -4% 40% 2.4pts NET SALES ($B)EBIT ($M)EBIT MARGIN COMMENTARY Q4 2023 Q4 2023 Q4 2023 Q4 2024 Q4 2024 Q4 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 4% 31% 1.4pts ● Net sales excluding currency increased 7% year-over-year in Q4 due to industry growth and pricing actions ● Achieved 240 bps year-over-year in Q4 EBIT margin expansion from cost actions and fixed cost leverage ● Sustained strong EBIT margin of 7% with 140 bps full year margin expansion
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10 MDA Asia Fourth-Quarter and Full-Year Results 8% nm 1.7pts NET SALES ($B)EBIT ($M)EBIT MARGIN COMMENTARY Q4 2023 Q4 2023 Q4 2023 Q4 2024 Q4 2024 Q4 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 1.6pts 86% 9% ● Sustained share gains and strong industry delivering net sales growth excluding currency of ~9% year-over-year in Q4 ● 170 bps Q4 EBIT margin expansion year-over-year from fixed cost leverage ● Delivered ~4% EBIT margin for the full year with 160 bps expansion year-over-year
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11 SDA Global Fourth-Quarter and Full-Year Results 6% -4% -1.3pts NET SALES ($B)EBIT ($M)EBIT MARGIN COMMENTARY Q4 2023 Q4 2023 Q4 2023 Q4 2024 Q4 2024 Q4 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 4% 4% 0.0pts ● Strong net sales growth year-over-year driven by new product launches and direct to consumer business ● Q4 EBIT margin impacted by increased marketing investments in new products ● Sustained strong EBIT margin of 14.3%
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12 Full-year ongoing EPS ~$10.00 with adjusted effective tax rate of 20-25% INVESTOR DAY GOALS 2025 GUIDANCE PROFITABLE GROWTH ~$17.2B ANNUAL ORGANIC NET SALES Net Sales YoY Change ~9.0% ONGOING EARNINGS BEFORE INTEREST AND TAX, % OF NET SALES Ongoing EBIT Margin YoY Change ~7.0% FREE CASH FLOW AS % OF NET SALES FCF as % of Net Sales Free Cash Flow MARGIN EXPANSION CASH CONVERSION ~$15.8B ~3.0% ~6.8% ~100bps ~3.5%$500-600M 12 2024 LIKE-FOR-LIKE excludes MDA Europe Q1 and India Jul - Dec ~$15.4B ~5.8% N/A 2025 Full-Year Guidance 2024 REPORTED $16.6B 5.3% $385M(14.6)% (80)bps 2.3%
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13 (Approximate impact) Current Comments 2024 Ongoing EBIT Margin 5.3% Price/Mix +0.75 •100+ product launches •Previously announced pricing actions Net Cost* +1.25 •Cost actions expected to deliver $200M+ benefit Raw Material Inflation nm •Expect minimal impact from commodity trends Marketing & Technology Investments -0.50 •Increased brand and new product investments Currency -0.50 •Primarily BRL Europe Transaction & Anticipated India Transaction +0.50 2025 Ongoing EBIT Margin ~6.8% *Inclusive of Fixed Cost Take Out, Ongoing Cost Productivity (Including Conversion and Freight & Warehousing), Volume Leveraging, and Restructuring Benefits. Full-Year 2025 Ongoing EBIT Margin Guidance
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14 2025 Segment Guidance Industry MDA North America MDA Latin America EBIT % MDA Asia* ~7.5% ~7.5% ~6.0% ~Flat 0 - 3% 3 - 5% SDA Global ~15.0%~Flat Total ~6.8%~Flat * 2025 Guidance for MDA Asia considers the anticipated India market sale transaction and excludes July through December 2025.
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15 ● Significant opportunity remaining after $2.5B raw material increase in 2021 and 2022 ● Portfolio transformation enabling unique-to-Whirlpool additional cost take out opportunities ● Product cost / design change optimization and additional manufacturing efficiencies Continuing to Win With Product Leadership and a Strong Cost Position ~3% Organic Growth $200M+ Net Cost Take Out ● Strongest brand portfolio in our business segments ● 100+ new product launches expected to launch in 2025 ● Best in class logistics capabilities supporting builder and direct-to-consumer growth 2021 2023 2024 2025F-$500M $250M New refrigeration lineup in North America launching Q1 Maytag deep fill washer & wrinkle preventing dryer launching Q1 2022 Net Cost (Excl RMI) $500M Whirlpool spin & load dishwasher rack launched Q4 2024 $0M
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16 Continuing to Win With Product Leadership Through Premium Product Launches JennAir Induction Downdraft Cooktops Clear the kitchen air with powerful & effective extraction that is quieter than a hood, liberating the space for more design possibilities. Flexible zones with automatic bridging combine to handle larger pots, pans and griddles. KitchenAid Next Generation Launch Unlocking a world of possibilities, the new lineup of KitchenAid products were designed for personalization and empowering the maker. This truly iconic brand’s first full product redesign in a decade leads the way for creativity in the kitchen.
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17 (Approximate impact in millions) 2024 2025 Comments Cash Earnings and Other Operating Items $637 $1,000 - $1,100 •2024 impacted by Europe Transaction (~$275M) Capital Expenditures $(451) ~$(450) •Innovation, digital transformation and cost optimization investments Working Capital $281 nm •Sustained low working capital levels Restructuring Cash Outlays $(82) ~$(75) •Driven by previously executed actions and further organization simplification Free Cash Flow $385M $500 - $600M 2025 Free Cash Flow Guidance
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18 Refreshed Capital Allocation Priorities 1 2 3 4 • Invest ~$450M of net sales in Capex • 100+ new product introductions coming 2025 Fund Organic Growth • Not a priority in 2025Share Buy Back or Value Creating M&A Fund Dividend • Committed to fund our dividend • Expect to pay down ~$700M of debt in 2025 • ~2x net debt leverage targetDebt Paydown
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19 Continued Commitment to Net Debt Leverage Reduction InSinkErator Acquisition Term Loan Debt $1.7B Year-End Net Debt Leverage 1.5 1.1 0.8 3.1 3.6 4.4 ~3.4 Refinance Portion of InSinkErator Debt Whirlpool Total Debt
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20 Strengthening our Balance Sheet Through Clear Actions to Address our Debt Maturities Actions to Address Senior Note Remaining variable term loan 2024 average rate of 6.3% $0.35B $1.50B $1.85B Debt Due in 2025 ● Expect to pay down ~$700M of debt ● Expect to refinance $1.1B - $1.2B ● Intend to use proceeds from India ownership stake reduction
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21 Anticipated Whirlpool of India Market Sale Transaction Expected to close by mid to late 2025 Note: Transaction subject to board approval Supports focus on portfolio of #1 positions Enable focus on growth acceleration to deliver Whirlpool of India shareholder value Whirlpool of India is well funded to support critical investments enabling growth plans Expect to generate net cash of $550 - $600M Continued revenue from Whirlpool brand license BENEFITS OF POTENTIAL TRANSACTION CURRENT OWNERSHIP 51% stake in Whirlpool of India ANTICIPATED OWNERSHIP POST TRANSACTION ~20% stake in Whirlpool of India
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22 ● MDA North America well positioned for growth and margin expansion ● International businesses to continue growth and strong EBIT margins ● SDA Global expected to accelerate growth from product launches ● Focus on structural cost take out of $200M+ ● Commitment to improving our balance sheet and paying down debt Closing Summary
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Whirlpool Corporation Confidential Closing Remarks and Q&A
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24 2025 Guidance Comparison to 2024 2024 As Reported Q1 2024 MDA Europe* July - December 2024 India** 2024 Like- for-Like 2025 Guidance*** Net Sales (in billions) $16.6 $0.8 $0.4 ~$15.4 ~$15.8 Ongoing EBIT (in millions) $887 $(9) $3 ~$893 ~$1,070 Ongoing EBIT Margin 5.3% (1.1)% 0.7% ~5.8% ~6.8% *Q1 historical segment financial data (unaudited). **July through December India financial data (unaudited). ***2025 guidance assumes nm impact from equity method interest in Beko Europe B.V. Note: Numbers may not reconcile due to rounding
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25 *Inclusive of Fixed Cost Take Out, Ongoing Cost Productivity (Including Conversion and Freight & Warehousing), Volume Leveraging, and Restructuring Benefits. 2024 Ongoing EBIT Margin Drivers (Approximate impact) Q1 Q2 Q3 Q4 FY 2023 Ongoing EBIT Margin 5.4% 7.3% 6.5% 5.2% 6.1% Price/Mix -3.75 -3.00 -1.25 -1.00 -2.25 Net Cost* +2.25 +1.00 +0.50 +1.75 +1.50 Raw Material Inflation nm nm nm nm nm Marketing & Technology Investments nm -0.50 nm -0.50 -0.25 Currency +0.50 -0.25 -0.50 -0.25 -0.25 Europe Transaction nm +0.75 +0.50 +0.75 +0.50 2024 Ongoing EBIT Margin 4.3% 5.3% 5.8% 6.0% 5.3% Organic Net Sales Growth (4.2)% 1.2% (0.7)% 2.0% (0.4)% 2024 Ongoing EBIT $ Seasonality 22% 24% 26% 28% 100%
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26 Income Statement FY2024 FY2025E Raw Material (Inflation) / Deflation nm nm Restructuring Costs* $79M ~$75M Interest Expense $358M ~$330M Corporate Center $200M ~$200M Weighted-Average Diluted Shares Outstanding 55.1M 56.1M** GAAP Earnings per Diluted Share $(5.87) ~$8.65 Ongoing Earnings per Diluted Share $12.21 ~$10.00 GAAP Tax Rate (5.5)% 20 - 25% Adjusted (non-GAAP) Tax Rate (28.6)% 20 - 25% Cash Flow Statement FY2024 FY2025E Capital Expenditures $451M ~$450M Dividends Paid $384M ~$400M Amount of Stock Repurchased $50M nm Restructuring Cash Outlays $82M ~$75M Cash Tax Rate 25% ~15% *Restructuring expense of less than $50M will not be included in Company’s guidance and will not be removed from ongoing earnings. Excludes equity method investee restructuring charges of $78M related to Beko Europe. **Estimated full-year weighted-average diluted shares outstanding; year-over-year increase in shares reflects equity compensation expectations. Key Assumptions - Guidance
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27 (Approximate impact in millions) Q4 Full Year Comments2023 2024 2023 2024 Net Foreign Exchange $4 $10 $26 $19 • Includes foreign exchange and hedge (gain)/loss Interest (Income) Expense/Other (30) (10) (74) (46) • 2024 interest income Ongoing Interest and Sundry (Income) Expense $(26) - $(48) $(27) Note: Numbers may not reconcile due to rounding. Please see supplemental information pack for reconciliations for the two measures above. Ongoing Interest and Sundry (Income) Expense and Ongoing Equity Method Investment Income (Loss) (Approximate impact in millions) Q4 Full Year Comments2023 2024 2023 2024 Ongoing Equity Method Investment Income (Loss) $(25) $(2) $(28) $(33) • 2024 EMEA minority interest
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28 (Approximate impact in millions) 2023 2024 Comments COVID-19 Related Actions $20 $0 Other Initiatives 12 82 Primarily due to organizational simplification Total $32 $82 Note: Numbers may not reconcile due to rounding. Restructuring Cash Outlays