WHIRLPOOL CORPORATION. February 2012

Transcription

1 WHIRLPOOL CORPORATION February

2 WHIRLPOOL ADDITIONAL INFORMATION: 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. Forwardlooking statements in this document may include, but are not limited to, statements regarding expected earnings per share, cash flow, productivity and material and oil-related 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) Whirlpool's ability to continue its relationship with significant trade customers and the ability of these trade customers to maintain or increase market share; (3) changes in economic conditions which affect demand for our products, including the strength of the building industry and the level of interest rates; (4) inventory and other asset risk; (5) global, political and/or economic uncertainty and disruptions, especially in Whirlpool's significant geographic regions, including uncertainty and disruptions arising from natural disasters or terrorist attacks; (6) The impact of the European debt crisis; (7) 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 of innovation; (8) fluctuations in the cost of key materials (including steel, oil, plastic, resins, copper and aluminum) and components and the ability of Whirlpool to offset cost increases; (9) litigation and legal compliance risk and costs, especially costs which may be materially different from the amount we expect to incur or have accrued for; (10) product liability and product recall costs; (11) the effects and costs of governmental investigations or related actions by third parties; (12) Whirlpool's ability to obtain and protect intellectual property rights; (13) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (14) health care cost trends, regulatory changes and variations between results and estimates that could increase future funding obligations for pension and post retirement benefit plans; (15) information technology system failures and data security breaches; (16) the impact of labor relations; (17) our ability to attract, develop and retain executives and other qualified employees; (18) changes in the legal and regulatory environment including environmental and health and safety regulations; and (19) the ability of Whirlpool to manage foreign currency fluctuations. Additional information concerning these and other factors can be found in Whirlpool Corporation'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. 2

3 COMPANY OVERVIEW World s #1 major appliance company $19 billion in revenue Products sold in more than 130 countries Every Home Everywhere 3

4 SENSE OF PURPOSE Improving Lives One Home, One Family at a Time Every Home Everywhere 4

5 STRONG FOUNDATION + GROWTH Strongest Brand Portfolio Geographic expansion Product innovation #1 Leading Scale Major Appliance Company Best Distribution Product line/ Channel share growth Adjacent Businesses = Long-Term Value Creation 5

6 SIGNIFICANT OPPORTUNITY TO GROW CORE PRODUCT LEADERSHIP AND EXPAND ADJACENCIES GROW THE CORE EXTEND THE CORE + + EXPAND BEYOND THE CORE T-12 major appliances Products or services that are dependent on and related to our core business Stand-alone businesses that leverage our core competencies and core business infrastructure Leading Global Branded Consumer Products Company 6

7 REVENUE SEGMENTATION 2011 Long-Term Revenue Growth Target Core Products + 4 6% Adjacent Products/ Businesses % Total Whirlpool + 5 7% 7

8 T-7 Share LEADING GLOBAL SHARE 16% 14% 12% #1 North America #4 Europe #1 Latin America #3 India 10% 8% 6% 4% 2% 0% Whirlpool Electrolux Bosch-Siemens GE / Mabe LG Samsung 8

9 GLOBAL LEADER MORE DIVERSIFIED THAN EVER BEFORE

10 CONSERVATIVE Style TRENDY UNMATCHED U.S. CONSUMER REACH Consumer Target Segment % of Total 5% 21% 30% 9% 22% LOWER Willingness to pay HIGHER Whirlpool Corporation s Brand Portfolio Can Reach More Than 85% of Consumers, Most Consumer-Preferred Brands 10

11 Units U.S. INDUSTRY T7 UNIT SHIPMENTS NAR Growth Outlook +0 % to +3 % 0 Expect Short-Term Demand to Continue at Current Levels 11

12 U.S. INDUSTRY DEMAND DRIVERS 2003 U.S. Demand Components 2011 U.S. Demand Components 9% 9% Replacement 21% 35% 56% Housing Remodeling 70% We are in a Replacement Cycle 12

13 SIGNIFICANT REVENUE OPPORTUNITY U.S. Contract Channel Share Growth $1 Billion Opportunity for Whirlpool Housing Recovery 13

14 STRONG AND GROWING PRESENCE IN EMERGING MARKETS Nearly 2/3 of International Revenue Is Derived from Emerging Markets 14

15 SIGNIFICANT GROWTH OPPORTUNITIES 76% Current Average Penetration % Global Appliance Market ~$150 Billion 15

16 STRONG INTERNATIONAL ASSETS Leading brand portfolio Leading emerging market position #1 in Latin America appliance #1 in Global Compressors #3 in India Platform for growth in China Superior economies of scale Leveraging global capabilities in local regions Strong local management base We have developed local capabilities to win 16

17 STRONG CADENCE OF INNOVATIVE NEW PRODUCTS IN 2011 Cabrio Platinum highefficiency top-load laundry 30 dual fuel, double oven range Maxima 9000 washer Induction cooktop Built-in oven in Europe Washing machine in Brazil Ative! Refrigerator in Latin America 17

18 KEY DRIVERS FOR 2012 ONGOING BUSINESS OPERATIONS POSITIVE NEUTRAL NEGATIVE Previously announced cost-based price increases Fixed cost and capacity reduction benefits Ongoing productivity Innovation and adjacent business growth Global demand Material and oilrelated costs 18

19 2012 FINANCIAL GUIDANCE Diluted EPS (1) $ $5.50 Ongoing Business Operations EPS (2) $ $7.00 Free Cash Flow (3) $100 million - $150 million Ongoing Business Cash Flow (3) $950 million - $1 billion Significant ongoing business operations improvement (1) Earnings per share impact is based on full-year outlook for number of diluted shares (2) Ongoing business operations EPS/adjusted diluted EPS are non-gaap measures (3) Free Cash Flow and ongoing business cash flow are non-gaap measures 19

20 HISTORY OF POSITIVE FREE CASH FLOW GENERATION Fund the Business Cash Flow Priorities Dividends Debt Repayment Fund Remaining Legacy Legal Liabilities By the End of 2012, Legacy Legal Liabilities Will Largely be Behind Us 20

21 ROADMAP FOR GROWTH AND VALUE CREATION Growth Geographic expansion Product line extension Adjacent revenue streams Margin Expansion Leading brands & innovation Extend cost leadership Extend quality leadership Cash Generation Disciplined capital investment Increased asset turnover Shareholder Value Creation Targets +5 7% Revenue Growth 8% Operating Margin % EPS Growth 4 5% FCF % to Sales 21

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