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Whirlpool Corporation Confidential First-Quarter 2025 Earnings Review Thursday, April 24, 2025 Whirlpool Corporation Confidential
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Whirlpool Corporation Confidential Cautionary Statement 2 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, India transaction expectations, asset impairment, trade and tariffs, litigation, ESG efforts, debt repayment expectations, and the impact of the global economy and geopolitical events on our operations and financial results. 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 2024 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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Whirlpool Corporation Confidential Non-GAAP Measures 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 first quarter 2024 net sales from the divested EMEA business and foreign currency impact. Slide(s): 6, 18 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): 6, 7, 18, 19, 30 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 $(53) million and $(322) million for the first quarters of 2025 and 2024, 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, 28 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): 6, 18, 31 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): 6, 18, 29 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: 18, 31 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.
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Whirlpool Corporation Confidential 4 Jim Peters EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER Marc Bitzer CHAIRMAN AND CHIEF EXECUTIVE OFFICER First-Quarter 2025 Earnings Review
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Whirlpool Corporation Confidential 1 2 3 4 5 6 Tariff Landscape and Mitigation Plan 2025 Guidance and Capital Allocation Priorities Agenda 5 First-Quarter Results
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Whirlpool Corporation Confidential 2025 First-Quarter Results 6 PROFITABLE GROWTH Net Sales YoY Change MARGIN EXPANSION CASH CONVERSION Ongoing EBIT Margin YoY Change 1.6 pts 5.9% Free Cash Flow FCF as % of Net Sales ● 2% organic net sales improvement with strong SDA Global and MDA Asia growth ● Expanded ongoing EBIT margin 160 bps year-over-year from pricing and cost actions ● FCF improvement of ~$200M vs prior year driven by Europe transaction ● Delivered ongoing EPS of $1.70 ● Paid $1.75 dividend per share in Q1 and $1.75 dividend declared in Q2 $3.6B (19.4)% 2.2% organic $(793)M (21.9)%
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Whirlpool Corporation Confidential Ongoing EBIT Margin Drivers 7 *Inclusive of Fixed Cost Take Out, Ongoing Cost Productivity (Including Conversion and Freight & Warehousing), Volume Leveraging, and Restructuring Benefits. (Approximate impact) Q1’24 vs Q1’25 2024 Ongoing EBIT Margin 4.3% Price/Mix +0.50 Net Cost* +1.00 Raw Material Inflation nm Marketing & Technology Investments -0.25 Currency -0.50 Europe Transaction +0.75 2025 Ongoing EBIT Margin 5.9%
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Whirlpool Corporation Confidential MDA NAR First-Quarter Results 8 NET SALES ($B) EBIT ($M) EBIT MARGIN -0.5pts-14% ● Stable net sales delivery despite declining consumer confidence and ‘loading’ of Asian imports by foreign competitors ahead of tariffs ● Delivered 60 bps margin improvement year-over-year driven by pricing actions and cost take out ● Very positive trade response to new product innovations for 2025 -7% Q1 2024Q1 2025 Q4 2024 Q1 2024Q1 2025 Q4 2024 Q1 2024Q1 2025 Q4 2024 11%0% 0.6pts
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Whirlpool Corporation Confidential MDA LAR First-Quarter Results 9 NET SALES ($B) EBIT ($M) EBIT MARGIN -1.0pts-31%-20% -25%-12% -1.2pts ● Net sales excluding currency increased 2% year-over-year driven by implemented pricing actions ● ~80 bps EBIT margin expansion year-over-year excluding prior year ~200 bps operational tax benefit Q1 2024Q1 2025 Q4 2024 Q1 2024Q1 2025 Q4 2024 Q1 2024Q1 2025 Q4 2024
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Whirlpool Corporation Confidential MDA Asia First-Quarter Results 10 NET SALES ($B) EBIT ($M) EBIT MARGIN 5.8pts548% 13% 72% 12% 2.4pts Q1 2024Q1 2025 Q4 2024 Q1 2024Q1 2025 Q4 2024 Q1 2024Q1 2025 Q4 2024 ● Net sales excluding currency increased 16% year-over-year driven by strong volume from share gains and industry growth ● EBIT margin expansion year-over-year from cost take out and fixed cost leverage
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Whirlpool Corporation Confidential SDA Global First-Quarter Results 11 ● Delivered 10% net sales growth year-over-year excluding currency with strong direct-to-consumer sales ● Continued strong momentum from new products in high growth potential categories ● Favorable price/mix delivered very strong EBIT margin NET SALES ($B) EBIT ($M) EBIT MARGIN 6.0pts-24%-49% 10%8% 0.4pts Q1 2024Q1 2025 Q4 2024 Q1 2024Q1 2025 Q4 2024 Q1 2024Q1 2025 Q4 2024
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Whirlpool Corporation Confidential 1 2 3 4 5 6 Tariff Landscape and Mitigation Plan 2025 Guidance and Capital Allocation Priorities Agenda 12 First-Quarter Results
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Whirlpool Corporation Confidential Current Relevant Tariff Landscape of U.S. Imports 13 Canada / Mexico (IEEPA) New in Q1 2025 Reciprocal (IEEPA) New in Q2 2025 Section 301 Initially implemented in 2018 Section 232 Initially implemented in 2018 Order ● Incremental 20% on Imports from China ● 25% tariff on imports from Canada/Mexico only if non-USMCA compliant ● Pre-2025: 25% Steel and 10% aluminum; multiple country and product exclusions; select components and finished goods covered ● 2025 Update: Removed exclusions; increased aluminum to 25%; added additional components and finished goods as derivatives - e.g., gas ranges ● 10% for all countries excluding China, with higher tariffs on certain countries possible pending negotiations ● 125% for China (stacks on IEEPA / Section 301; not applicable if Section 232 applies) Scope ● Pre-2025: Majority 25% (some 7.5%) based on specific HTS codes for components and finished goods from China ● 2025 Update: No change
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Whirlpool Corporation Confidential Current Administration Trade Policies Will Level Playing Field for Domestic Production 14 NET POSITIVE IMPACT ON DOMESTIC PRODUCTION AMPLIFIED NEGATIVE IMPACTS NEGATIVE IMPACT ON DOMESTIC PRODUCTION ● Since 2020, Asian producers have exploited ‘Loopholes’ in 232/301 tariffs resulting in ~$70/unit disadvantage for U.S. made products ● (Some) Asian producers circumvented existing 301 tariffs ● Asian producers ‘loaded’ U.S. industry in anticipation of tariffs, Q4 2024 and Feb YTD >30% higher imports from Asian countries ● (Threat of) retaliatory tariffs started to impact business in Canada (and Europe) ● Some (retaliatory) tariff headwinds will continue, but… ● New reciprocal tariffs begin leveling the playing field and additional U.S. trade actions will better support American manufacturing Pre Q3/2024 Q4/24 & Q1/25 Q2/25 Forward
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Whirlpool Corporation Confidential Same Product (design cost ~$350) Asia Production 0% U.S. Inputs NO steel tariffs paid on finished goods ~$50 per unit NO steel tariffs paid on components in finished goods $699 $849 U.S. Production Vast Majority U.S. Inputs 15 Supply Chain Steel Cost Difference (232) U.S. cold rolled 2-3x more expensive than Chinese Component Cost Difference (232/301) Retail Price Factor ~2x incl. trade margin ~$20 per unit Expect new trade policies to eliminate this unfair disadvantage Illustrative Example Existing Tariff “Loopholes” Created ~$70/unit Disadvantage for Domestic Production
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Whirlpool Corporation Confidential ● (Component) cost based price increase already announced in April ● Previously announced Q1 pricing actions successfully implemented ● Additional cost take out initiatives to mitigate increases on raw materials, components and finished goods Mitigating Actions Underway 16 Pricing Actions1 ● Accelerating opportunities to shift sourced parts ● Assessing manufacturing footprint moves (insourcing / location shifts) Supply Sourcing Evaluation (Limited due to our largely U.S.-based footprint)2 ● Implemented tariff monitoring system and mitigation system ● Monitoring and responding to exemptions and circumvention risks Proactive Monitoring3 With 80% domestic production Whirlpool is a NET winner of new tariff policies!
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Whirlpool Corporation Confidential 1 2 3 4 5 6 Tariff Landscape and Mitigation Plan 2025 Guidance and Capital Allocation Priorities Agenda 17 First-Quarter Results
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Whirlpool Corporation Confidential 18 2025 Full-Year Guidance Unchanged 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 2024 LIKE-FOR-LIKE excludes MDA Europe Q1 and India Jul - Dec ~$15.4B ~5.8% N/A 2024 REPORTED $16.6B 5.3% $385M(14.6)% (80)bps 2.3%
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Whirlpool Corporation Confidential Ongoing EBIT Margin Guidance Unchanged 19 (Approximate impact) Current Comments 2024 Ongoing EBIT Margin 5.3% Price/Mix (excl. Tariff Impact/Actions) +0.75 •Product launches & pricing actions Net Cost* (excl. Tariff Impact/Actions) +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 Transaction Impacts +0.50 •Completed Europe transaction and anticipated India transaction 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. Tariff Impact -2.50 •Incremental impact of tariff changes Actions to Address +2.50 •Announced cost based pricing actions, supply chain actions, etc Expect to offset incremental tariff impacts
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Whirlpool Corporation Confidential 20 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 Debt Paydown Capital Allocation Priorities • Committed to fund our dividend; reviewed quarterly by the Board • Expect to pay down ~$700M of debt in 2025 • ~2x net debt leverage target
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Whirlpool Corporation Confidential Strengthening our Balance Sheet Through Clear Actions to Address our Debt Maturities 21 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 of maturing debt ● ● Intend to use proceeds from expected India ownership stake reduction
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Whirlpool Corporation Confidential Debt Ladder Provides Flexibility for Refinancing 2025 Maturities 22 Senior Notes Acquisition Related Term Loan Targeted refinance windows $0 $500 $2,000 2025 2026 2027 2028 2032 2033 2044 2047 2037 2038 2039 2040 2041 2042 2043 2045 2046 2048 2049 2050 2031 2036 2035 2034 2030 2029
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Whirlpool Corporation Confidential Positioned for Growth with New Product Launches >30% portfolio turnover for MDA North America expected in 2025 23 Created to empower users with a sleek frameless design, an innovative easy-to-clean WipeClean coating and convenient TempCook presets for precise cooking. KITCHENAID INDUCTION COOKTOP Features a vertical dual convection fan to distribute heat evenly and fast throughout the cavity for perfect results, with a simplified graphic interface for an intuitive cooking experience. JENNAIR BUILT-IN WALL OVEN Integrated with Airfryer Pro for unmatched versatility, this double oven offers advanced features like a smart timer and Auto Shutdown for added safety and peace of mind. BRASTEMP FREE STANDING RANGE Powerful blades and variable speeds allow for precise control over texture and consistency, with a versatile hot/cold resistant jar and heat release lid vent to blend a variety of food types. KITCHENAID BLENDER
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Whirlpool Corporation Confidential Positive Feedback on Exciting Product Launches 24
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Whirlpool Corporation Confidential “Perhaps the most eye-catching innovation that we have seen this week at KBIS, JennAir’s new Downdraft Induction Cooktop defies gravity better than Elphaba.” - Reviewed.com Recognized by Winning 7 Awards at KBIS! 25 Best of KBIS Awards Reviewed.com Maytag Pet Pro Pair JennAir Downdraft Induction KitchenAid Wall Oven Whirlpool WipeClean Cooktop Best of KBIS Awards Apartment Therapy KitchenAid Juniper Best in Show Awards The Kitchn Whirlpool Refrigerator JennAir Downdraft Induction “I am loving the color and customization options on KitchenAid…especially Juniper Green!” - KBIS Trade Customer “You just sold me on your future, whereas last year I had doubts on Whirlpool’s vision.”- KBIS Trade Customer
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Whirlpool Corporation Confidential Closing Summary 26 ● MDA North America well positioned for growth from new products ● Expect tariff policies to level the playing field for domestic producers ● Continued strength expected from SDA Global & international businesses ● Focus on structural cost take out of $200M+ ● 2025 guidance unchanged while managing macroeconomic risks
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Whirlpool Corporation Confidential Closing Remarks and Q&A 27
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Whirlpool Corporation Confidential 2025 Segment Guidance Remains Unchanged 28 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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Whirlpool Corporation Confidential 2025 Free Cash Flow Guidance Remains Unchanged 29 (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
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Whirlpool Corporation Confidential 2025 Guidance Comparison to 2024 30 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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Whirlpool Corporation Confidential Key Assumptions - Guidance 31 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) ~$8.75 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 based on estimates as of 3/31/2025.
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Whirlpool Corporation Confidential Interest and Sundry (Income) Expense and Equity Method Investment Income (Loss) 32 (Approximate impact in millions) Q1 Comments2024 2025 Net Foreign Exchange $(5) $4 • Includes foreign exchange and hedge (gain)/loss Interest (Income) Expense/Other (24) (36) • 2024 & 2025 interest income, interest rate swap impact Interest and Sundry (Income) Expense $(29) $(32) Note: Numbers may not reconcile due to rounding. No adjustments to GAAP financials in Q1 2024 and 2025 in ongoing results for the above items. (Approximate impact in millions) Q1 Comments2024 2025 Equity Method Investment Income (Loss) $0 $(17) • 2025 EMEA minority interest
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Whirlpool Corporation Confidential Restructuring Cash Outlays 33 (Approximate impact in millions) 2024 2025E Comments Other Initiatives $82 $75 Primarily due to organizational simplification Total $82 ~$75 Note: Numbers may not reconcile due to rounding.