Transcript
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© Welbilt, Inc. © Welbilt, Inc.

Investor Presentation

May 8, 2017

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© Welbilt, Inc. © Welbilt, Inc.

Safe Harbor Statement

2

Any statements in this presentation regarding our business that are not

historical facts are “forward-looking statements”. These statements are

based on the current expectations of the management of the company and

our future results could differ materially from any implied projections or

forward-looking statements made today. Our actual results may be affected

by many important factors, including risks and uncertainties identified in our

press releases and in our SEC filings. We do not undertake any obligation to

publicly update or revise any forward-looking statement, whether as a result

of new information, future events, or other circumstances.

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© Welbilt, Inc. © Welbilt, Inc. © Welbilt, Inc. © Welbilt, Inc.

Agenda 1. Welbilt Introduction 2. Global Foodservice Equipment Industry 3. Strategy 4. Financials

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© Welbilt, Inc. © Welbilt, Inc.

Welbilt at a Glance

4

Offering: Full-line of hot/cold products & systems

End Markets: All commercial kitchen operators Channels: 3000+ distributors & dealers Employees: Approx. 5,500 globally Presence: 36 locations in 12 countries Capabilities: World class design, manufacturing,

parts & service

2016 Revenue $1.5B

73% Americas

16% EMEA

11% APAC

by Region

by End Market1 by Channel2

Other 2%

Retail 8%

Business & Industry 10%

Education 6%

Healthcare 8%

Travel & Leisure 8%

Restaurants 58%

Other General Markets 7%

Key Accounts 22%

Other Chains 4%

Dealers, Distributors, Buying Groups 64%

1Estimate for WBT Americas 2Reflects gross sales for 2016. Includes all third party product sales.

Dealers, Distributors,

Buying Groups

67%

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Our heritage in the industry stretches back over a century, and our experience and expertise has grown tremendously over the years

5

1902 1945 1971 1995 2015 2008 2016 1966 1993 1997

1851 1910 1994 1995 1999 2000 2002 2004 2008 1982

Berisford WELBILT 1929 Henry and Alexander Hirsch establish the Welbilt Stove Co.

1995 Berisford acquires Welbilt Corp. in the United States

1955 Welbilt acquires Detroit-Michigan Stove Co (parent company of Garland) to become Welbilt Corp.

1982 Frymaster joins the portfolio

1989 Cleveland Range and Merco join the portfolio

1994 Lincoln joins the portfolio

2000 Berisford changes its name to Enodis plc.

1998-1999 Convotherm and Delfield join the portfolio

2008 The Manitowoc Company acquires Enodis

1966 Manitowoc Ice begins producing ice-machines

1995 MTW acquires Kolpak

2000 Merrychef and Multiplex join the portfolio

2016 Manitowoc Foodservice spins-off from The Manitowoc Company…

2015 MFS launches its fitKitchen (“food inspiring technology”) initiative

2017 …and now, we are Welbilt

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© Welbilt, Inc. © Welbilt, Inc. 6

Our corporate brand’s essence is grounded in intuitive design and solutions

Brand Essence

Inspired by Simplicity. Powered by Expertise.

What we Believe

The Kitchen is the Heart of your Business

We are… We are… We are…

Relentlessly Reliable

Excellent service and long-lasting products

are non-negotiable.

Pragmatically Innovative

Innovation distinguishes the leader from the follower, but only by being practical

and relevant to the market.

Intelligently Connected

We go beyond offering just stand-alone

equipment – our solutions not only complement, but also optimize your kitchen,

and power your business.

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© Welbilt, Inc. © Welbilt, Inc.

Full Line Product Offering with Leading Brands ...

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Commercial Fryers, Hot Holding

Beverage Equipment

12 brands that command #1 or #2 market share positions

Cold products (~40-45% revenue) Hot products (35-40% revenue) Parts & Service (~15-20% revenue)

Walk-in Refrigeration

Freezers & Prep. Stations

Commercial Ranges, Grills, and Induction

Combi- and High Speed Ovens

Ice-cube machines

System Solutions

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... and a Broad Range of Supporting Services for our Channel Partners and End Customers

8

University

Finance Solutions

StarChef Program

KitchenCare®

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© Welbilt, Inc. © Welbilt, Inc.

Top 5 Global End Customers

Long Standing Customer Relationships with large End Customers as well as US Channel Partners

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Large End Customers typically designated as “Key Accounts”

US Channel Partners typically referred to as “General Market”

2016

Customer % of FY16 Revenue

# of Years¹

End Customer 1 8.1% 54 End Customer 2 3.8% 27 End Customer 3 3.2% 57 End Customer 4 2.0% 35 End Customer 5 1.8% 30

2016

Customer % of FY16 Revenue

# of Years¹

Dealer Customer 1 7.5% 29 Dealer Customer 2 6.9% 8 Dealer Customer 3 5.7% 8 Dealer Customer 4 3.6% 28 Dealer Customer 5 3.1% 26

Top 5 North America Dealer Customers

Over 40 years average relationship with our top 5 end customers and

20 years average relationship with our top 5 dealer customers

1Source: Company estimates.

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© Welbilt, Inc. © Welbilt, Inc.

2017 U.S. Foodservice Equipment Needs1

Stable Revenue Base from Significant Replacement Demand and Large Installed Base

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Predictable product replacement cycles support stable Welbilt revenue

Provides recurring, higher margin revenue and aids in maintaining customers

2/3 of demand expected to be driven by replacement and renovations in 2017,

supporting stable revenue base

~15-20% of revenue generated by stable KitchenCare aftermarket

parts and service offering

KitchenCare

KitchenCare protects, services, and maintains foodservice equipment throughout the product lifecycle

Each new piece of Welbilt equipment comes with KitchenCare warranty Multiple levels of support available, depending on customer need Provides a stable source of recurring revenue

1 Foodservice Equipment and Supplies

Replacement 44%

New Construction 19%

Eco Friendly 5% Site Expansion/

Add’l Dayparts 9%

Renovations 23%

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© Welbilt, Inc. © Welbilt, Inc.

Awards & Recognitions for Leading Product Innovations

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© Welbilt, Inc. © Welbilt, Inc. © Welbilt, Inc. © Welbilt, Inc.

Agenda 1. Welbilt Introduction 2. Global Foodservice Equipment Industry 3. Strategy 4. Financials

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© Welbilt, Inc. © Welbilt, Inc.

Steadily Growing

Foodservice Industry

Positive Industry Fundamentals

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Population & Income Growth

Health & Safety

New Concepts & New Markets

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Increasing Global Population & Income

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300

400

500

600

700

2000 2005 2010 2015 2020 2025 2030

Inde

x (1

950

= 10

0)

Trend Growth Line, 1950– 2000 GDP per Capita (Constant US$)

0

2

4

6

8

10

1950 1970 1990 2010 2030 2050

Glo

bal P

opul

atio

n (b

illio

ns)

The global population has tripled since the 1950s and is expected to reach over 9 billion by 2050

Global per capita income is expected to exhibit continued growth over the 2015-2030 period

Eating-out culture is growing, driven by: • Increasing disposable

incomes • Hectic lifestyles

Global Population Growth

Global per capita income Growth

Source: Global Monitoring Report, UN Statistical Yearbooks and Publications, IMF International Financial Statistics, IMF World Economic Outlook and IMF Staff Estimates.

Source: U.S. Census Bureau, International Data Base, July 2015 Update

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47 Years of Restaurant-Industry1 Sales Demonstrate Non-Cyclicality of Foodservice Industry

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Real (inflation-adjusted) percentage growth

(3.0)

(2.0)

(1.0)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1971 1976 1981 1986 1991 1996 2001 2006 2011 2016

1 National Restaurant Association defines restaurant industry as encompassing all meals prepared away from home including all takeout meals and beverages. Source: National Restaurant Association, 2017 Restaurant Industry Forecast

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4.4% 4.3% 4.2%

3.8% 3.0%

2.7% 2.6%

1.6%

Sports BarSteak

Family StyleAsian

MexicanItalian/Pizza

Varied MenuSeafood

2016 Sales Growth – Full Service Restaurants

Changing Dining Concepts & Untapped Markets

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Dining Concept Growth Untapped Markets – Room to Grow

# of Chain Restaurants per 1M People1

0 25 50 75 100

Brazil

China

USA

1) Euromonitor, May 2016, based on full service restaurant units Source: 2017 Technomic Inc. Top 500 Chain Restaurant Report

9.2% 7.5%

6.9% 5.8%

3.7% 2.9% 2.9% 2.8%

0.7% -7.5%

Coffee CaféChicken

Asian/NoodlePizza

Bakery CaféSandwich

BurgerMexican

Frozen DessertsFamily Casual

2016 Sales Growth – Limited Service Restaurants

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Global Health & Food Safety Concerns also Drive Foodservice Equipment Demand

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• Food safety a top priority

• Professional foodservice equipment facilitates proper food handling and reduces the risk of infection

• Environmental sustainability

• Reduction of unusable portions and waste

• Preventing premature food spoilage

“Americans' Spending on Dining Out Just Overtook Grocery Sales” April 14, 2015

“Celebrity Chefs Hope to Press Congress on Food Waste” May 25, 2016

“Food Shippers in the U.S. Face New Rules” April 5, 2016

“Food safety: Five things to watch out for” May 23, 2016

“4 surprising ways warmer temperatures will change our food” April 5, 2016

“New salmonella outbreak in chicken resists antibiotics” October 8, 2013

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Foodservice Operator Cost Pressures Are Fueling Demand for Innovation

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Targeted Innovative

Product Solutions & Systems with Short Payback

Increasing Labor Cost

Increasing Real Estate Cost

Increasing Energy Cost

Need for Waste Avoidance

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Product Solutions Deliver Short Payback For Operators

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Solution Performance Benefit to the Operator Typical Payback

Multiplex Blend-in-Cup®

Combines core MFS technologies: ice machine, beverage dispensing , blending and automated cleaning Single piece of equipment to do multiple beverages vs. multiple pieces of equipment to do one beverage

Dispense, blend and serve – in the same cup serves hundreds of beverages per day Reduces waste and saves labor Drives incremental revenue & profitability

An average of 70 drinks per day provides an

operator payback as short as 6 months

Merrychef eikon® e2s

Up to 15x faster than conventional cooking methods: Toasted sandwich in 50 seconds Ventless countertop oven with easy plug-n-play installation

Speed of service to meet consumer demand in all segments Flexibility to cover any part of the day with high quality food Easy to use small footprint with big production Certified ventless Allows menu expansion to drive incremental revenue & profitability

An average of 150 food items sold a day provides an

operator payback as short as 3 months Due to versatility of Merrychef technology, further savings and quicker ROI can be obtained from removal of multiple appliances that Merrychef eikon e2s replaces

Convotherm 4

Multi-use and flexible foundation of the kitchen Superior menu versatility with unwavering quality Simplifies & optimizes kitchen operations

Extremely flexible Delivers the highest quality, most- even cooking results possible The new standard for flexible, reliable self-cleaning Robust, high quality and reliability Reduced operating costs

An average of 150 food items sold a day provides an operator payback as short as 4 months Due to versatility of Convotherm technology, further savings and quicker ROI can be obtained from removal of multiple appliances that Convotherm 4 replaces

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kitchenconnect Will Drive Further Benefits Through Digitalization & Analytics

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Comprehensive In-Field Support The Heart of the Kitchen

Functions to Help Streamline...

Demand Driven Ventilation

Other building systems Lighting

Refrigeration Menu

Management and Recipe Downloads

Installations and Roll Outs

Alerts & Actions Predictive & Preventive Maintenance

Repairs / Smart Dispatch

Start-ups

Capex -> Opex New Business Models

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Drive Through Optimization

Inventory Management

Kitchen Management and Control

In Store Traffic Analytics

Front of House Optimization

Back of House Systems Optimization

Labor Productivity Enhancement

Equipment Connectivity, Analytics and Remote Management

fitKitchen Takes a Systems Approach and Will Drive Toward Optimization of the Entire System – Kitchen 4.0 as in Industry 4.0

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2,736

1,894

6,112 4,810

751

3,925

Non-Tracked Non-AddressedHot Side Cold SideBeverage Aftermarket

Positive Fundamentals and Industry-Specific Drivers Will Provide Steady Foodservice Equipment Industry Growth

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Global Industry Size (2016)1

US$ Million Total Industry: $20,228 M Tracked Industry: $17,493 M

1Source: Company estimates.

Global Industry Development (2014 – 2019)2 US$ Million

16,064 16,728 17,493 18,122 18,819

19,556

2014 2015 2016 2017 2018 2019

CAGR* 4.4% CAGR* 3.8%

*CAGR = Compound Annual Growth Rate

2Source: Company estimates.

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Agenda 1. Welbilt Introduction 2. Global Foodservice Equipment Industry 3. Strategy 4. Financials

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Vision, Mission & Values Set the Ambition

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Vision We are the global leader in professional foodservice equipment and systems.

Mission We create value for customers, employees and shareholders by integrating food, technology and people to build and deliver the highest quality, innovative products and systems, offer best-in-class global service, and enable healthy and safe food experiences.

Values INTEGRITY – PASSION – TEAMWORK – ENTREPRENEURSHIP – ACCOUNTABILITY

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Clear Strategic Objectives and Thrusts ...

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Strategic Objectives Strategic Thrusts

Achieving Profitable Growth

• Strive for # 1 or #2 market share in every segment addressed • Grow organically short term, buy and build mid-term to outgrow market • Right-size and simplify to improve profitability

Creating Innovative Products & Solutions

• Create game-changing product & system solutions in the entire kitchen • Actively address product competitiveness and lifecycle extensions • Move to global platforms to enhance cost position

Driving Operational Excellence

• Move assembly closer to end markets and localize products • Use strategic sourcing to streamline vendor base • Drive lean manufacturing principles throughout the organization

Guaranteeing Customer Satisfaction

• Grow KitchenCare parts & service to a bigger proportion of total business • Enhance process and delivery planning • Develop next generation distribution

Developing Great People

• Provide incentive schemes that motivate and drive performance • Identify, develop and grow key talent • Make Welbilt the employer of choice in our industry

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...are the Levers that will Bridge the Gap to our Margin Ambition

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2015 EBITDA Margins

“Mid-teens”

Product Cost & Platforms

Simplification

KitchenCare Improvements

New Products and Systems

Right-Sizing

Lean Mfg.

The “1000 BPS Challenge” of...

...gap closure is a multi-year journey.

Plant Rationalization

Headcount Reductions

80:20 PLS & CLS

Purchasing & Supply

Chain

Achieved 2016

EBITDA Margin

Ambition “Mid-to-high

twenties still to go“

Guidance Range 2017

= Later Stage

“Runway Remaining”: Stage of Initiative Progress

= Mid Stage = Early Stage

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2017 Priorities

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Deliver profitable growth and operational excellence objectives 1

Drive new product and new system solutions to fuel sales growth 2

Delever the balance sheet 3

Develop acquisition pipeline 4

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Agenda 1. Welbilt Introduction 2. Global Foodservice Equipment Industry 3. Strategy 4. Financials

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2017 First Quarter Results

29

US$ in millions 2017 Q1 2016 Q1 Δ

- Organic net sales1 $333.0 $324.1 +2.7%

- (Acquisitions)/divestitures impact --- $1.4 (0.4%)

- FX translation impact ($5.0) --- (1.5%)

Net sales $328.0 $325.5 +0.8%

Adjusted operating EBITDA margin1 16.1% 15.4% +70 bps

Amortization expense $7.8 $7.8

Interest expense $23.2 $8.5

Interest expense on notes with MTW - net --- $0.1

Loss on early extinguishment of debt $3.2 ---

Other expense - net $1.5 $2.4

Effective tax rate 29.6% 20.3%

Adjusted net earnings1 $10.6 $20.9 (49.3%)

Adjusted diluted EPS1 $0.08 $0.15 (46.7%)

Delivers sales and margin growth over prior year

1 Non-GAAP measures. See Appendix for GAAP presentation and reconciliations of non-GAAP measures.

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2017 Full-Year Guidance Details

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Organic sales growth Down 1% to up 2%

Adjusted operating EBITDA margin Between 18.5% to 20% range

Amortization expense Between $30 and $33 million

Depreciation expense Between $16 and $19 million

Interest expense Between $85 and $90 million (near low end of range)

Effective tax rate Between 29% and 32%

Adjusted diluted EPS Between $0.65 and $0.75 per share (excludes separation, restructuring , asset impairment and debt extinguishment expenses)

Capital expenditures Between $23 and $28 million

Debt paydown Between $100 and $120 million

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Appendix: Additional Materials

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2017 First Quarter Results - GAAP

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US$ in millions 2017 Q1 2016 Q1 Δ

Net sales $328.0 $325.5 0.8%

Earnings from operations margin 10.7% 10.4% +30 bps

Amortization expense $7.8 $7.8

Interest expense $23.2 $8.5

Interest expense on notes with MTW-net --- $0.1

Loss on early extinguishment of debt $3.2 ---

Other expense-net $1.5 $2.4

Effective tax rate 29.6% 20.3%

Net earnings $5.0 $18.1 (72.4%)

Diluted EPS $0.04 $0.13 (69.2%)

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2017 Adjusted Operating EBITDA by Quarter

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(US$ in millions) Q1 Q2 Q3 Q4 2017-YTD

Net earnings $5.0 $5.0

Incomes taxes 2.1 2.1

Other expense - net 1.5 1.5

Loss on early extinguishment of debt 3.2 3.2

Interest expense 23.2 23.2

Asset impairment expense 0.4 0.4

Restructuring expense 4.6 4.6

Separation expense 0.9 0.9

Amortization expense 7.8 7.8

Depreciation expense 4.0 4.0

Adjusted Operating EBITDA $52.7 $52.7

Adjusted Operating EBITDA margin1 16.1% 16.1%

1 Adjusted Operating EBITDA margin is calculated by dividing the dollar amount of Adjusted Operating EBITDA by net sales.

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2016 Adjusted Operating EBITDA by Quarter

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(US$ in millions) Q1 Q2 Q3 Q4 FY2016

Net earnings $18.1 $15.1 $24.9 $21.4 $79.5

Incomes taxes 4.6 4.1 7.1 9.5 25.3

Other (income) expense - net 2.4 3.6 3.6 (0.5) 9.1

Interest expense on notes with MTW - net 0.1 --- --- --- 0.1

Interest expense 8.5 27.0 25.0 24.7 85.2

Asset impairment expense --- --- 1.7 1.6 3.3

Restructuring expense 1.3 0.3 0.6 0.3 2.5

Separation expense 3.0 1.3 1.4 0.8 6.5

Amortization expense 7.8 7.9 7.8 7.7 31.2

Depreciation expense 4.3 4.5 4.2 4.3 17.3

Adjusted Operating EBITDA $50.1 $63.8 $76.3 $69.8 $260.0

Adjusted Operating EBITDA margin1 15.4% 17.3% 19.9% 18.4% 17.8%

1 Adjusted Operating EBITDA margin is calculated by dividing the dollar amount of Adjusted Operating EBITDA by net sales.

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2015 Adjusted Operating EBITDA by Quarter

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(US$ in millions) Q1 Q2 Q3 Q4 FY2015

Net earnings $14.0 $36.9 $41.1 $65.1 $157.1

Incomes taxes 6.5 17.0 18.3 (2.5) 39.3

Other (income) - net (0.4) (0.2) (1.6) (19.9) (22.1)

Interest (income) on notes with MTW–net (4.7) (4.6) (4.2) (2.3) (15.8)

Interest expense 0.3 0.4 0.3 0.4 1.4

Asset impairment expense --- --- --- 9.0 9.0

Restructuring expense 0.7 (0.2) 0.8 3.3 4.6

Separation expense --- 0.5 1.0 3.7 5.2

Amortization expense 7.8 7.9 7.9 7.8 31.4

Depreciation expense 5.2 4.8 4.9 4.7 19.6

Adjusted Operating EBITDA $29.4 $62.5 $68.5 $69.3 $229.7

Adjusted Operating EBITDA margin1 8.5% 15.3% 16.1% 17.7% 14.6%

1 Adjusted Operating EBITDA margin is calculated by dividing the dollar amount of Adjusted Operating EBITDA by net sales.

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2017 Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share by Quarter

36

(US$ in millions) Q1 Q2 Q3 Q4 2017-YTD

Net earnings $5.0 $5.0

Asset impairment expense 0.4 0.4

Restructuring expense 4.6 4.6

Separation expense 0.9 0.9

Loss on early extinguishment of debt 3.2 3.2

Tax effect of adjustments (3.5) (3.5)

Adjusted net earnings $10.6 $10.6

(US$) Q1 Q2 Q3 Q4 2017-YTD

Diluted earnings per share $0.04 $0.04

Asset impairment expense per share --- ---

Restructuring expense per share 0.03 0.03

Separation expense per share 0.01 0.01 Loss on early extinguishment of debt per share 0.02 0.02

Tax effect of adjustments per share (0.02) (0.02) Adjusted diluted net earnings per share $0.08 $0.08

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© Welbilt, Inc. © Welbilt, Inc.

2016 Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share by Quarter

37

(US$ in millions) Q1 Q2 Q3 Q4 FY2016

Net earnings $18.1 $15.1 $24.9 $21.4 $79.5

Asset impairment expense --- --- 1.7 1.6 3.3

Restructuring expense 1.3 0.3 0.6 0.3 2.5

Separation expense 3.0 1.3 1.4 0.8 6.5

Tax effect of adjustments (1.5) (0.7) (1.2) (1.3) (4.7)

Adjusted net earnings $20.9 $16.0 $27.4 $22.8 $87.1

(US$) Q1 Q2 Q3 Q4 FY2016

Diluted earnings per share $0.13 $0.11 $0.18 $0.15 $0.57

Asset impairment expense per share --- --- 0.01 0.01 0.02

Restructuring expense per share 0.01 --- 0.01 --- 0.02

Separation expense per share 0.02 0.01 0.01 0.01 0.05

Tax effect of adjustments per share (0.01) --- (0.01) (0.02) (0.04)

Adjusted diluted net earnings per share $0.15 $0.12 $0.20 $0.15 $0.62

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© Welbilt, Inc. © Welbilt, Inc.

2015 Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share by Quarter

38

(US$ in millions) Q1 Q2 Q3 Q4 FY2015

Net earnings $14.0 36.9 $41.1 $65.1 $157.1

Asset impairment expense --- --- --- 9.0 9.0

Restructuring expense 0.7 (0.2) 0.8 3.3 4.6

Separation expense --- 0.5 1.0 3.7 5.2

Tax effect of adjustments (0.2) (0.2) (0.7) (5.9) (7.0)

Adjusted net earnings $14.5 $37.0 $42.2 $75.2 $168.9

(US$) Q1 Q2 Q3 Q4 FY2015

Diluted earnings per share $0.10 $0.27 $0.30 $0.48 $1.15

Asset impairment expense per share --- --- --- 0.07 0.07

Restructuring expense per share --- --- 0.01 0.02 0.03

Separation expense per share --- --- 0.01 0.03 0.04

Tax effect of adjustments per share --- --- (0.01) (0.05) (0.06)

Adjusted diluted net earnings per share $0.10 $0.27 $0.31 $0.55 $1.23

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© Welbilt, Inc. © Welbilt, Inc. © Welbilt, Inc. © Welbilt, Inc.

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