2015 SECOND-QUARTER EARNINGS REVIEW JULY 22, 2015 Whirlpool - - PowerPoint PPT Presentation

2015 second quarter earnings review
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2015 SECOND-QUARTER EARNINGS REVIEW JULY 22, 2015 Whirlpool - - PowerPoint PPT Presentation

2015 SECOND-QUARTER EARNINGS REVIEW JULY 22, 2015 Whirlpool Corporation WHIRLPOOL CORPORATION ADDITIONAL INFORMATION This Presentation contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries


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SLIDE 1

Whirlpool Corporation

2015 SECOND-QUARTER EARNINGS REVIEW

JULY 22, 2015

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SLIDE 2

Whirlpool Corporation

This Presentation 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 Presentation may include, but are not limited to, statements regarding expected earnings per share, cash flow, productivity and raw material prices. 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 reflecting the impact of both new and established global competitors, including Asian and European manufacturers; (2) acquisition and investment-related risk, including risk associated with our acquisitions of Hefei Sanyo and Indesit, and risk associated with our increased presence in emerging markets; (3) Whirlpool's ability to continue its relationship with significant trade customers and the ability of these trade customers to maintain or increase market share; (4) risks related to our international operations, including changes in foreign regulations, regulatory compliance and disruptions arising from natural disasters or terrorist attacks; (5) fluctuations in the cost of key materials (including steel, plastic, resins, copper and aluminum) and components and the ability of Whirlpool to offset cost increases; (6) the ability of Whirlpool to manage foreign currency fluctuations; (7) litigation, tax, and legal compliance risk and costs, especially costs which may be materially different from the amount we expect to incur or have accrued for; (8) the effects and costs of governmental investigations or related actions by third parties; (9) changes in the legal and regulatory environment including environmental and health and safety regulations; (10) Whirlpool's ability to maintain its reputation and brand image; (11) the ability of Whirlpool to achieve its business plans, productivity improvements, cost control, price increases, leveraging of its global operating platform, and acceleration of the rate

  • f innovation; (12) information technology system failures and data security breaches; (13) product liability and product recall

costs; (14) inventory and other asset risk; (15) changes in economic conditions which affect demand for our products, including the strength of the building industry and the level of interest rates; (16) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (17) the uncertain global economy; (18) our ability to attract, develop and retain executives and other qualified employees; (19) the impact of labor relations; (20) Whirlpool's ability to obtain and protect intellectual property rights; and (21) health care cost trends, regulatory changes and variations between results and estimates that could increase future funding obligations for pension and postretirement benefit plans. Additional information concerning these and other factors can be found in Whirlpool's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.

WHIRLPOOL CORPORATION ADDITIONAL INFORMATION

Second-Quarter Earnings Review — 1 7/22/2015

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SLIDE 3

Whirlpool Corporation

USE OF NON-GAAP FINANCIAL MEASURES

Second-Quarter Earnings Review — 2

This presentation includes certain non-GAAP financial measures, which we refer to as “ongoing business”(1) measures: Ongoing business operating profit (loss), ongoing business operating margin, ongoing business earnings (loss) before income taxes, ongoing business earnings per diluted share, ongoing business earnings before interest and taxes (EBIT), ongoing business earnings before interest and taxes (EBIT) margin, earnings before interest and taxes (EBIT), earnings before interest and taxes (EBIT) margin, ongoing business segment

  • perating profit (loss) and ongoing business segment operating margin

Other non-GAAP financial measures included in this presentation are free cash flow(2) and net sales (excluding currency and BEFIEX). Please refer to the appendix for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

(1) Ongoing business measures are non-GAAP measures. See appendix slides 37-48 (2) Free cash flow is a non-GAAP measure. See appendix slides 37 and 49

7/22/2015

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SLIDE 4

Whirlpool Corporation

OVERVIEW

Second-Quarter Earnings Review — 3 7/22/2015

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SLIDE 5

Whirlpool Corporation

  • Record revenue, ongoing operating profit and earnings
  • Integration plans on track: delivering growth and synergies
  • Global currency and emerging market demand remain challenging
  • Larger global platform helped offset currency and demand challenges
  • Action plans to deliver second-half margin expansion deployed and on track

4

2015 SECOND-QUARTER HIGHLIGHTS

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 6

Whirlpool Corporation 5

2015 SECOND-QUARTER RESULTS

Net Sales Net Sales (Excluding Currency) Diluted EPS (GAAP) Ongoing Business Diluted EPS(1) YTD Free Cash Flow(2)

2015

$5.2B $5.9B $2.21 $2.70 $(0.6)B

2014

$4.7B $4.7B $2.25 $2.62 $(0.6)B

Change

$0.5B $1.2B ($0.04) $0.08 $0.0B 11.2% 25.0% RECORD REVENUE, ONGOING OPERATING PROFIT AND EARNINGS PERFORMANCE

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 7

Whirlpool Corporation 6

2015 FINANCIAL GUIDANCE

GAAP Diluted EPS $9.50–$10.50 Ongoing Business Diluted EPS(1) $12.00–$13.00 Free Cash Flow(2) ~ $700 million Current Guidance

7/22/2015 Second-Quarter Earnings Review —

CONTINUE TO DEPLOY ACTIONS TO IMPROVE PERFORMANCE

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SLIDE 8

Whirlpool Corporation

  • Continued acceleration of integration benefits in Europe and China
  • Deploy action plans to expand margins in the second half
  • Leverage strong cadence of innovative new product launches
  • Growth beyond the core
  • Ongoing cost productivity programs

7

2015 BUSINESS PRIORITIES

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 9

Whirlpool Corporation

LONG-TERM STRATEGY REMAINS ON TRACK

8

Product & Brand Innovation Geographic Expansion

  • U.S. industry recovery
  • Transformed European business
  • China growth platform
  • Emerging market growth
  • Accelerating global innovation
  • Cadence of new products
  • Margin expansion
  • Adjacent businesses growth

Best Cost Structure

  • Ongoing cost productivity
  • Leverage right-sized fixed cost structure
  • Complexity reduction through global platforms

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 10

Whirlpool Corporation

NORTH AMERICA OPERATIONS

9 7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation 10

DRIVERS

+

Ongoing cost productivity

+

Unit volume growth

− Currency impact

SECOND QUARTER BETTER/(WORSE) (USD in millions)

2015 2014 2014 % Net Sales $ 2,687 $ 2,675 $ 12 0.4% Operating Profit (GAAP) $ 287 $ 285 $ 2 0.7% Operating Margin (GAAP) 10.7% 10.6% 0.1 pts Ongoing Business Operating Profit(1) $ 290 $ 285 $ 5 1.8% Ongoing Business Operating Margin(1) 10.8% 10.6% 0.2 pts MARGINS CONTINUE TO IMPROVE: STRONG FOUNDATION FOR EXPANSION

NORTH AMERICA SECOND-QUARTER RESULTS

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 12

Whirlpool Corporation

NORTH AMERICA 2015

11

Actions to Deliver Second-Half Margins

  • Accelerate growth of recently launched products
  • Significant ongoing cost productivity
  • Previously announced cost-based price increases in Canada

Factors Impacting Operating Margins

+ Industry guidance of ~4% + Housing trends rebound + Consumer sentiment improving + Discretionary spending improved – Currency impact

NEW PRODUCTS WILL CAPITALIZE ON DEMAND GROWTH

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 13

Whirlpool Corporation 12

NORTH AMERICA PRODUCT LEADERSHIP

KITCHENAID BLACK STAINLESS APPLIANCES: A NEW ERA IN KITCHEN DESIGN HAS ARRIVED

7/22/2015 Second-Quarter Earnings Review —

Exclusive Performance Features

Burners: Even-Heat technology to ensure consistent cooking Dishwashers: Nine-in-one dynamic wash arm for excellent coverage and exceptional cleaning

New Visual Brand Language

First-ever black stainless steel finish in the appliance industry Professional-style appliances without the commercial stainless steel look

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SLIDE 14

Whirlpool Corporation

EUROPE, MIDDLE EAST AND AFRICA (EMEA) OPERATIONS

13 7/22/2015 Second-Quarter Earnings Review —

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SLIDE 15

Whirlpool Corporation 14

SECOND QUARTER BETTER/(WORSE) (USD in millions)

2015 2014 2014 % Net Sales $ 1,334 $ 746 $ 588 78.8% Operating Profit (GAAP) $ 51 $ 2 $ 49 nm Operating Margin (GAAP) 3.8% 0.2% 3.6 pts Ongoing Business Operating Profit(1) $ 56 $ 2 $ 54 nm Ongoing Business Operating Margin(1) 4.2% 0.2% 4.0 pts INTEGRATION ON TRACK: MARGIN IMPROVEMENTS CONTINUE

EMEA SECOND-QUARTER RESULTS

DRIVERS

+

Volume growth (Western Europe)

+

Benefits from integration activities

+

Ongoing cost productivity

+

Cost and capacity reductions

− Currency impact (translational / transactional) − Eastern Europe demand

7/22/2015 Second-Quarter Earnings Review — nm: not meaningful

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Whirlpool Corporation

EMEA 2015

15

Actions to Deliver Second-Half Margins

  • Acquisition benefits build through the second half
  • Innovative new product launches
  • Ongoing cost productivity programs

Factors Impacting Operating Margins

+ Industry guidance of flat to +2% + Acquisition growth and synergies + Western European demand – Currency – Eastern European demand

CONTINUED FOCUS ON SUCCESSFUL INTEGRATION

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 17

Whirlpool Corporation 16

EMEA PRODUCT LEADERSHIP

WHIRLPOOL SUPREME NOFROST REFRIGERATOR: BETTER FOOD PRESERVATION IN THE FRIDGE AND THE FREEZER

7/22/2015

Freeze Control

Reduces freezer burns by up to 50%

Fresh Control

Preserves the freshness of food

Activ0o

Store fresh meat and fish in perfect conditions.

Second-Quarter Earnings Review —

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Whirlpool Corporation

LATIN AMERICA OPERATIONS

17 7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation 18

SECOND QUARTER BETTER/(WORSE) (USD in millions)

2015 2014 2014 % Net Sales $ 854 $ 1,092 $ (238 ) (21.8)% Operating Profit $ 36 $ 87 $ (51 ) (58.6)% Operating Margin 4.2% 8.0% (3.8) pts

DEPLOYED ACTIONS TO EXPAND MARGINS IN THE SECOND HALF

LATIN AMERICA SECOND-QUARTER RESULTS

DRIVERS

+

Price / mix

+

Benefits of cost and capacity reductions

− Currency impact − Brazil demand − Production adjustment

7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation

LATIN AMERICA 2015

19

Actions to Deliver Second-Half Margins

  • Previously announced and executed cost-based price increases
  • Strong actions to reduce fixed costs and headcount
  • Drive ongoing cost productivity

Factors Impacting Operating Margins

– Industry guidance of down ~15% – Consumer sentiment / Demand – Inflation and currency

MANAGING SHORT-TERM CHALLENGES … SECOND-HALF ACTIONS DEPLOYED

7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation 20

LATIN AMERICA PRODUCT LEADERSHIP

WHIRLPOOL TOP-LOAD WASHER: SMART LOAD SYSTEM FOR DEEP CLEANING AND BETTER WATER CONSUMPTION

7/22/2015

Best Capacity

Basket with special drum design for big loads. Perfect for 1 Duvet Queen size

Water Fill System

3D Waterfall helps to remove residual soap and hard stains with superior washing results

Load System

Smart load level system that helps to reduce consumption

  • f water and detergent.

Second-Quarter Earnings Review —

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Whirlpool Corporation

ASIA OPERATIONS

21 7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation 22

SECOND QUARTER BETTER/(WORSE) (USD in millions)

2015 2014 2014 % Net Sales $ 381 $ 211 $ 170 80.7% Operating Profit (GAAP) $ 27 $ 4 $ 23 nm Operating Margin (GAAP) 6.4% 1.9% 4.5 pts Ongoing Business Operating Profit(1) $ 31 $ 4 $ 27 nm Ongoing Business Operating Margin(1) 8.1% 1.9% 6.2 pts STRONG RESULTS DRIVEN BY INTEGRATION ACTIVITIES IN CHINA & EXECUTION IN INDIA

ASIA SECOND-QUARTER RESULTS

DRIVERS

+

Acquisition growth and synergies

+

Ongoing cost productivity

+

Benefits of cost and capacity reductions

− Increased product and brand investments − Lower China demand

7/22/2015 Second-Quarter Earnings Review — nm: not meaningful

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Whirlpool Corporation

ASIA 2015

23

Actions to Deliver Second Half Margins

  • Continue leveraging integration actions to facilitate growth
  • Innovative new product launches
  • Ongoing cost productivity

Factors Impacting Operating Margins

= Flat industry guidance + Favorable macro trends in India – Macro trends in China – Currency impact

LARGER GROWTH PLATFORM ENABLES STRONG MARGIN PERFORMANCE

7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation 24

ASIA PRODUCT LEADERSHIP

DIQUA FRONT-LOAD WASHER: WIFI ENABLED WASHING WITH EXTRAORDINARILY QUIET PERFORMANCE

7/22/2015 Second-Quarter Earnings Review —

Connected appliance

WiFi enabled with 5 inch touch screen for easy control of the washing process

Vibration control

Direct drive motor and 3-D vibration control for extraordinarily quiet washing

Automatic dosing

Precise delivery of detergent for superior results

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Whirlpool Corporation

FINANCIAL REVIEW

25 7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation 26

SECOND QUARTER BETTER/(WORSE)

(USD in millions)

2015 2014 2014 % Net Sales $ 5,208 $ 4,682 $ 526 11 % Gross Margin 17.4% 16.8% 0.6 pts SG&A % 10.7% 9.7% (1.0) pts Restructuring $ 58 $ 34 $ (24 ) (71) % Operating Profit (GAAP) $ 273 $ 291 $ (18 ) (6) % Ongoing Business Operating Profit(1) $ 355 $ 330 $ 25 8 % Operating Margin (GAAP) 5.2% 6.2% (1.0) pts Ongoing Business Operating Margin(1) 6.8% 7.1% (0.3) pts Interest & Sundry Income (Expense) $ 42 $ (16 ) $ 58 nm Earnings Before Interest & Taxes(1) $ 315 $ 275 $ 40 15 % Ongoing Business Earnings Before Interest & Taxes(1) $ 335 $ 323 $ 12 4 %

SECOND-QUARTER FINANCIAL SUMMARY

7/22/2015 Second-Quarter Earnings Review — nm: not meaningful

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Whirlpool Corporation 27

SECOND QUARTER BETTER/(WORSE)

(USD in millions)

2015 2014 2014 % Earnings Before Interest & Taxes(1) $ 315 $ 275 $ 40 15 % Ongoing Business Earnings Before Interest & Taxes(1) $ 335 $ 323 $ 12 4 % Earnings Before Interest & Taxes Margin(1) 6.0% 5.9% 0.1 pts Ongoing Business Earnings Before Interest & Taxes Margin(1) 6.4% 6.9% (0.5) pts Interest Expense $ 40 $ 40 $ % Earnings Before Income Taxes (GAAP) $ 275 $ 235 $ 40 17 % Income Tax Expense $ 90 $ 50 $ (40 ) (80 )% Net Earnings Available to Whirlpool $ 177 $ 179 $ (2 ) (1 )% Diluted EPS (GAAP) $ 2.21 $ 2.25 $ (0.04 ) (2 )% Ongoing Business Diluted EPS(1) $ 2.70 $ 2.62 $ 0.08 3 %

SECOND-QUARTER FINANCIAL SUMMARY

7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation 28

2015 FINANCIAL GUIDANCE

GAAP Diluted EPS $9.50–$10.50 Ongoing Business Diluted EPS(1) $12.00–$13.00 Free Cash Flow(2) ~ $700 million Current Guidance

7/22/2015 Second-Quarter Earnings Review —

CONTINUE TO DEPLOY ACTIONS TO IMPROVE PERFORMANCE

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Whirlpool Corporation Second-Quarter Earnings Review — 29

2015 SECOND-HALF EARNINGS PER SHARE DRIVERS (APPROXIMATE IMPACT)

7/22/2015

+

Pricing in Brazil, Canada, and Eastern Europe

+

New product launches

+

Acceleration of benefits expected in the second half

+

Fixed cost reductions

+

Positive raw material trends

+

Increase in production volumes

Currency driven by higher volume Price/Mix Currency Cost Productivity Acquisitions ~$1.00 ~$0.50 ~$0.50 ~$(0.75)

$4.84 $7.16 - $8.16 Second-half Ongoing EPS(1) First-half Ongoing EPS(1) +

Historical volume seasonality

+

U.S. industry volume recovery Volume ~$1.50

* Note the earnings per share drivers above represent sequential changes from the first half to the second half of 2015

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Whirlpool Corporation 30

2015 ACQUISITION / RESTRUCTURING UPDATE

1H FY 2015 ~$300M* ~$90M China Integration Europe Integration Existing Restructuring

PLANS FOR 2015 EXPENSES AND BENEFITS ON TRACK

1H FY 2015 ~$175M ~$65M Expenses Benefits

7/22/2015

* Of the ~$300M Expense, cash impact is $250M

Second-Quarter Earnings Review —

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SLIDE 32

Whirlpool Corporation 31

2015 CAPITAL ALLOCATION STRATEGY

BALANCING FUNDING FOR ALL ASPECTS TO ENSURE THE BEST LONG-TERM VALUE CREATION FOR OUR SHAREHOLDERS Allocation Considerations Outcome Fund the Business Capital Investment: 3.5% of Sales Targeted Capital Structure 1.0 – 1.5x Debt / EBITDA target Dividends 25 – 30% Trailing 12 month earnings (guideline) Share Repurchase

  • $50M repurchased in Q2 2015
  • $425M authorization remaining

M&A

  • Strategic Fit
  • Strong Value Creation
  • Capacity to Execute

7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation

CLOSING REMARKS

32 7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation

  • Continued acceleration of integration benefits in Europe and China
  • Deploy action plans to expand margins in the second half
  • Leverage strong cadence of innovative new product launches
  • Growth beyond the core
  • Ongoing cost productivity programs

33

2015 BUSINESS PRIORITIES

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 35

Whirlpool Corporation

MULTIPLE PATHS TO PROFITABLE GROWTH AND MARGIN EXPANSION

34

Product & Brand Innovation Geographic Expansion

  • U.S. industry recovery
  • Transformed European business
  • China growth platform
  • Emerging market growth
  • Accelerating global innovation
  • Cadence of new products
  • Margin expansion
  • Adjacent businesses growth

Best Cost Structure

  • Ongoing cost productivity
  • Leverage right-sized fixed cost structure
  • Complexity reduction through global platforms

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 36

Whirlpool Corporation

APPENDIX

35 7/22/2015 Second-Quarter Earnings Review —

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SLIDE 37

Whirlpool Corporation 36

First-Half

Actual

Full-Year

Forecast

2014 Ongoing Business EBIT Margin 6.7% 6.9% Price / Mix ½ 1 - 1 ½ Cost and Capacity Reductions ½ ½ Ongoing Cost Productivity / Material Costs ½ 1 Marketing, Technology and Product Investments (¼) (½) Currency (1 ¾) (1 ½) – (2) 2015 Ongoing Business EBIT Margin 6.1% 7.1 – 7.5%

2015 ONGOING BUSINESS(1) EBIT MARGIN EXPANSION DRIVERS (APPROXIMATE IMPACT)

7/22/2015 Second-Quarter Earnings Review —

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Whirlpool Corporation 37

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 business" measures, including ongoing business operating profit, ongoing business operating margin, ongoing business earnings (loss) before income taxes, earnings before interest and taxes (EBIT), EBIT margin, ongoing business EBIT, ongoing business EBIT margin, ongoing business earnings per diluted share, ongoing business segment operating profit, ongoing business segment operating margin, net sales excluding foreign currency and BEFIEX, and free cash flow. Ongoing business measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing business operations and provide a better baseline for analyzing trends in our underlying businesses. Net sales excluding foreign currency and BEFIEX is calculated by translating the current period net sales excluding BEFIEX, in functional currency, to U.S. dollars using the prior-year period’s exchange rate compared to the prior-year period net sales excluding BEFIEX. Management believes that net sales excluding foreign currency and BEFIEX provides stockholders with a clearer basis to assess our results over time. Management believes that free cash flow provides investors and stockholders with a relevant measure of liquidity and a useful basis for assessing the company's ability to fund its activities and obligations. We believe that these non-GAAP measures provide meaningful information to assist investors and stockholders in understanding our financial results and assessing our prospects for future performance. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non- GAAP financial measures having the same or similar names. These ongoing business financial measures should not be considered in isolation or as a substitute for reported operating profit, earnings (loss) before income taxes, net earnings per diluted share available to Whirlpool, reported operating profit by segment, net sales, and cash provided by (used in)

  • perating activities, the most directly comparable GAAP financial measures. These non-GAAP financial measures reflect

an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the following reconciliations to corresponding GAAP financial measures, provide a more complete understanding of our business. We strongly encourage investors and stockholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

7/22/2015 Second-Quarter Earnings Review —

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SLIDE 39

Whirlpool Corporation 38

The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit,

  • ngoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the most

directly comparable GAAP financial measures, operating profit and net earnings per diluted share available to Whirlpool, for the three months ended June 30, 2015. Ongoing business operating margin is calculated by dividing

  • ngoing business operating profit by net sales. Ongoing business EBIT margin is calculated by dividing ongoing

business EBIT by net sales.

2015 SECOND-QUARTER ONGOING BUSINESS MEASURES

Three Months Ended June 30, 2015 Operating Profit Earnings Before Interest & Taxes(3) Earnings per Diluted Share Reported GAAP Measure $ 273 $ 315 $ 2.21 Restructuring Expense(a) 58 58 0.55 Acquisition Related Transition Cost (b) 21 21 0.23 Pension Settlement Charge(c) 3 3 0.03 Gain Related to a Business Investment (d) — (65 ) (0.62 ) Antitrust Resolutions(e) — 3 0.03 Normalized Tax Rate Adjustment(f) — — 0.27 Ongoing Business Measure $ 355 $ 335 $ 2.70

7/22/2015

(3) Earnings Before Interest & Taxes is a non-GAAP measure calculated by adding Interest and sundry income (expense) [approximately $42 million] and Operating Profit

Second-Quarter Earnings Review —

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SLIDE 40

Whirlpool Corporation 39

The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit,

  • ngoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the most

directly comparable GAAP financial measures, operating profit and net earnings per diluted share available to Whirlpool, for the three months ended June 30, 2014. Ongoing business operating margin is calculated by dividing

  • ngoing business operating profit by net sales. Ongoing business EBIT margin is calculated by dividing ongoing

business EBIT by net sales.

2014 SECOND-QUARTER ONGOING BUSINESS MEASURES

7/22/2015

(3) Earnings Before Interest & Taxes is a non-GAAP measure calculated by adding Interest and sundry income (expense) [approximately $(16) million] and Operating Profit

Second-Quarter Earnings Review —

Three Months Ended June 30, 2014 Operating Profit Earnings Before Interest & Taxes(3) Earnings per Diluted Share Reported GAAP Measure $ 291 $ 275 $ 2.25 Restructuring Expense(a) 34 34 0.33 Investment Expense (g) 5 13 0.12 Antitrust Resolutions(e) — 1 0.01 Normalized Tax Rate Adjustment(f) — — (0.09 ) Ongoing Business Measure $ 330 $ 323 $ 2.62

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SLIDE 41

Whirlpool Corporation 40

The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit,

  • ngoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the most

directly comparable GAAP financial measures, operating profit and net earnings per diluted share available to Whirlpool, for the six months ended June 30, 2015. Ongoing business operating margin is calculated by dividing

  • ngoing business operating profit by net sales. Ongoing business EBIT margin is calculated by dividing ongoing

business EBIT by net sales.

2015 FIRST-HALF ONGOING BUSINESS MEASURES

Six Months Ended June 30, 2015 Operating Profit Earnings Before Interest & Taxes(3) Earnings per Diluted Share Reported GAAP Measure $ 576 $ 565 $ 4.59 Benefit Plan Curtailment Gain(h) (47 ) (47 ) (0.44 ) Restructuring Expense(a) 91 91 0.86 Combined Acquisition Related Transition Cost & Inventory Purchase Price Allocation(b) 37 38 0.43 Pension Settlement Charges(c) 15 15 0.15 Gain Related to Business Investment (d) — (65 ) (0.62 ) Antitrust Resolutions(e) — 13 0.12 Normalized Tax Rate Adjustment(f) — — (0.25 ) Ongoing Business Measure $ 673 $ 611 $ 4.84

7/22/2015

(3) Earnings Before Interest & Taxes is a non-GAAP measure calculated by adding Interest and sundry income (expense) [approximately $(11) million] and Operating Profit

Second-Quarter Earnings Review —

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SLIDE 42

Whirlpool Corporation 41

The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit,

  • ngoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the most

directly comparable GAAP financial measures, operating profit and net earnings per diluted share available to Whirlpool, for the six months ended June 30, 2014. Ongoing business operating margin is calculated by dividing

  • ngoing business operating profit by net sales excluding BEFIEX. Ongoing business EBIT margin is calculated by

dividing ongoing business EBIT by net sales excluding BEFIEX.

2014 FIRST-HALF ONGOING BUSINESS MEASURES

Six Months Ended June 30, 2014 Operating Profit Earnings Before Interest & Taxes(3) Earnings per Diluted Share Reported GAAP Measure $ 572 $ 533 $ 4.27 Brazilian (BEFIEX) Tax Credits(i) (14 ) (14 ) (0.18 ) Restructuring Expense(a) 63 63 0.60 Investment Expense(g) 11 21 0.20 Antitrust Resolutions(e) — 2 0.02 Normalized Tax Rate Adjustment(f) — — (0.09 ) Ongoing Business Measure $ 632 $ 605 $ 4.82

7/22/2015

(3) Earnings Before Interest & Taxes is a non-GAAP measure calculated by adding Interest and sundry income (expense) [approximately $(39) million] and Operating Profit

Second-Quarter Earnings Review —

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SLIDE 43

Whirlpool Corporation 42

The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit,

  • ngoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the most

directly comparable GAAP financial measures, operating profit and net earnings per diluted share available to Whirlpool, for the projected twelve months ending December 31, 2015. Ongoing business operating margin is calculated by dividing ongoing business operating profit by net sales. Ongoing business EBIT margin is calculated by dividing ongoing business EBIT by net sales.

Twelve Months Ending December 31, 2015 Operating Profit Earnings Before Interest & Taxes(3) Earnings per Diluted Share Reported GAAP Measure $ 1,400 – 1,500 $ 1,300 – 1,400 $ 9.50 – 10.50 Benefit Plan Curtailment Gain(h) (47 ) (47 ) (0.44 ) Restructuring Expense(a) 300 300 2.85 Combined Acquisition Related Transition Cost & Inventory Purchase Price Allocation(b) 48 49 0.57 Pension Settlement Charge(c) 15 15 0.15 Antitrust Resolutions(e) — 13 0.12 Gain Related to Business Investment(d) — (65 ) (0.62 ) Ongoing Business Measure $ 1,700 – 1,800 $ 1,550 – 1,650 $ 12.00 – 13.00

2015 FORECAST FULL-YEAR ONGOING BUSINESS MEASURES

7/22/2015

(3) Earnings Before Interest & Taxes is a non-GAAP measure calculated by adding Interest and sundry income (expense) [approximately $(100) million] and Operating Profit 2015 full year GAAP and ongoing business tax rate assumption is approximately 24 percent.

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2014 FULL-YEAR ONGOING BUSINESS MEASURES

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The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit,

  • ngoing business earnings before interest and taxes and ongoing business earnings per diluted share, with the

most directly comparable GAAP financial measures, operating profit and net earnings per diluted share available to Whirlpool, for the twelve months ended December 31, 2014. Ongoing business operating margin is calculated by dividing ongoing business operating profit by net sales excluding BEFIEX. Ongoing business EBIT margin is calculated by dividing ongoing business EBIT by net sales excluding BEFIEX.

Twelve Months Ended December 31, 2014 Operating Profit Earnings Before Interest & Taxes (3) Earnings per Diluted Share Reported GAAP Measure $ 1,188 $ 1,046 $ 8.17 Brazilian (BEFIEX) Tax Credits(i) (14 ) (14 ) (0.18 ) Restructuring Expense(a) 136 136 1.34 Investment Expenses(g) 52 87 0.86 Acquisition Related Transition Cost(b) 98 98 1.09 Inventory Purchase Price Allocation(b) 13 13 0.13 Antitrust and Contract Resolutions(e) 2 4 0.04 Normalized Tax Rate Adjustment (f) — — (0.06 ) Ongoing Business Measure $ 1,475 $ 1,370 $ 11.39 (3) Earnings Before Interest & Taxes is a non-GAAP measure calculated by adding Interest and sundry income (expense) [approximately ($142 million)] and Operating Profit

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2015 SECOND-QUARTER ONGOING BUSINESS SEGMENT OPERATING PROFIT The reconciliation provided below reconciles the non-GAAP financial measure ongoing business segment operating

profit (loss) with the most directly comparable GAAP financial measure, segment operating profit (loss), for the three months ended June 30, 2015. Ongoing business segment operating margin is calculated by dividing ongoing business segment operating profit (loss) by segment net sales.

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Three Months Ended June 30, 2015 Segment Operating Profit Restructuring Expense(a) Acquisition Related Transition Cost (b) Pension Settlement(c) Ongoing Business Segment Operating Profit North America $ 287 $ — $ — $ 3 $ 290 Latin America 36 — — — 36 EMEA 51 — 5 — 56 Asia 27 — 4 — 31 Other/Eliminations (128) 58 12 — (58) Total Whirlpool Corporation $ 273 $ 58 $ 21 $ 3 $ 355

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2014 SECOND-QUARTER ONGOING BUSINESS SEGMENT OPERATING PROFIT The reconciliation provided below reconciles the non-GAAP financial measure ongoing business segment operating

profit with the most directly comparable GAAP financial measure, segment operating profit, for the three months ended June 30, 2014. Ongoing business segment operating margin is calculated by dividing ongoing business segment operating profit by segment net sales.

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North America $ 285 $ — $ — $ 285 Latin America 87 EMEA 2 Asia 4 Other/Eliminations (48) Total Whirlpool Corporation $ 291 $ 34 $ 5 $ 330 4 — — (87) 34 5 87 — — 2 — — Segment Operating Profit Restructuring Expense(a) Investment Expense(b) Ongoing Business Segment Operating Profit Three Months Ended June 30, 2014

(g)

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a. During the second quarters of 2015 and 2014, we recorded restructuring charges of $58 million and $34 million,

  • respectively. The earnings per diluted share impacts are calculated based on income tax impacts of $14 million and

$8 million, respectively. During first halves of 2015 and 2014, we recorded restructuring charges of $91 million and $63 million, respectively. The earnings per diluted share impacts are calculated based on income tax impacts of $22 million and $15 million, respectively. During the full year 2014, we recorded restructuring charges of $136 million. The earnings per diluted share impact is calculated based on an income tax impact of $30 million. For the full year 2015, the company expects to recognize restructuring charges of $300 million. The earnings per diluted share impact is calculated based on an income tax impact of $72 million. b. During the second quarter of 2015, we recognized acquisition related transition costs of $21 million associated with the acquisition of a majority interest in Hefei Sanyo and the acquisition of Indesit. The earnings per diluted share impact is calculated based on an income tax impact of $5 million. During the first half of 2015, we recognized acquisition related transition costs and an inventory purchase price allocation adjustment totalling $38 million. The earnings per diluted share impact is calculated based on an income tax impact of $9 million. During the full year 2014, we recorded combined acquisition related transition costs of $98 million. The earnings per diluted share impact is calculated on an income tax impact of $21 million. During the full year 2014, we recognized an inventory purchase price allocation adjustment of $13 million. The earnings per diluted share impact is calculated based on an income tax impact of $3 million. For the full year 2015, the company expects to recognize acquisition related transition costs and an inventory purchase price allocation adjustment totaling approximately $49 million. The earnings per diluted share impact is calculated based on a combined income tax impact of $12 million.

FOOTNOTES

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c. During the second quarter of 2015, the company recognized expenses of $3 million related to a Canadian pension

  • settlement. The earnings per diluted share impact is calculated based on an income tax impact of $1 million. During

the first half of 2015, the company recognized expenses of $15 million related to pension settlements in Canada and EMEA. The earnings per diluted share impact is calculated based on an income tax impact of $4 million. During the full year 2015, the company expects to recognize expenses of $15 million related to pension settlements in Canada and EMEA. The earnings per diluted share impact is calculated based on an income tax impact of $4 million. d. During the second quarter of 2015, we recognized a gain related to a business investment of approximately $65

  • million. The earnings per diluted share impact is calculated based on an income tax impact of $16 million. During

the full year 2015, the company expects to recognize a gain related to a business investment of approximately $65

  • million. The earnings per diluted share impact is calculated on an income tax impact of $16 million.

e. During the second quarters of 2015 and 2014, we recognized expenses of approximately $3 million and $1 million, respectively, related to antitrust resolutions. During the first halves of 2015 and 2014, we recognized expenses of approximately $13 million and $2 million, respectively, related to antitrust resolutions. The earnings per diluted share impact is calculated based on an income tax impact of $1 million and $0 million for the second quarter and $3 and $0 million for the first half, respectively. During the full year 2014, we recognized expenses of $4 million related to antitrust and contract resolutions. The earnings per diluted share impact is calculated based on an income tax impact of $1 million. During the full year 2015, the company expects to recognize expenses of approximately $13 million related to antitrust resolutions. The earnings per diluted share impact is calculated based on an income tax impact of $3 million.

FOOTNOTES, continued

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FOOTNOTES, continued

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f. During the second quarters of 2014 and 2015, we made adjustments to ongoing business diluted EPS to reconcile specific items reported to anticipated full-year effective tax rates of of approximately 24%. During the first halves of 2015 and 2014, we made adjustments to ongoing business diluted EPS to reconcile specific items reported to anticipated full-year effective tax rates of approximately 24%. During the full year 2014, we made adjustments to ongoing business earnings per diluted share to reconcile specific items reported to a full-year effective tax rate of 22%. g. During the second quarter of 2014 we recognized an investment expense of $13 million primarily related to the pending acquisition of a majority interest in Hefei Sanyo completed in the fourth quarter of 2014. The earnings per diluted share impact is calculated based on an income tax impact of $3 million. During the first half of 2014, we recognized investment expenses of $21 million primarily related to the acquisition of a majority interest in Hefei Sanyo and the acquisition of Indesit. The earnings per diluted share impact is calculated based on an income tax impact of $5 million. During the full year 2014, we recognized investment expenses of $87 million primarily related to the acquisition of a majority interest in Hefei Sanyo and the acquisition of Indesit. The earnings per diluted share impact is calculated based on an income tax impact of $19 million. h. During the first half of 2015, we recorded a benefit plan curtailment gain of $47 million. The earnings per diluted share impact is calculated based on an income tax impact of $11 million. i. During the first half of 2014, we monetized Brazilian (BEFIEX) tax credits of $14 million. The earnings per diluted share impact is calculated based on an income tax impact of $0 million.

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FREE CASH FLOW

As defined by the company, free cash flow is cash provided by (used in) operating activities after capital expenditures, proceeds from the sale of assets and businesses and changes in restricted cash. The reconciliation provided below reconciles six-month ended June 30, 2015 and 2014 and projected full-year free cash flow with cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.

*Change in restricted cash relates to the private placement funds paid by Whirlpool to acquire majority control of Hefei Sanyo and which are released to fund approved capital expenditures and working capital. Six Months Ended June 30, (millions of dollars) 2015 2014 2015 Outlook Cash Provided by (Used in) Operating Activities $(397) $(368) $1,450 - $1,500 Capital expenditures, proceeds from sale of assets/businesses and changes in restricted cash* (222) (254) (750) – (800) Free Cash Flow $(619) $(622) ~ $700

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