WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN WHIRLPOOL 30 April

WHIRLPOOL CORPORATION  CONFIDENTIAL NORTH AMERICA REGION ~$9.6B Sales 29,000 Employees LATIN AMERICA REGION ~$4.7B Sales 25,000 Employees EUROPE REGION ~$3.2B Sales 12,000 Employees ASIA REGION ~$900 M Sales 5,000 Employees COMPANY OVERVIEW 230 April 2015 OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL EVERY ROOM … EVERY HOME … EVERYWHERE 3 BEDROOM(S) KITCHEN / DININGLAUNDRY ROOM BASEMENT GARAGE OUTDOOR Clothes revitalization Room air conditioning Dehumidifiers Air coolers Washer, dryer, sink Clothes revitalization Laundry storage solutions Refrigeration Dishwasher Cooking Ventilation Portables Cookware Storage Water filtration HVAC Freezers Air treatment Storage Appliances Workstations Flooring Grills Cooking centers 30 April 2015 OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL WHIRLPOOL GLOBAL OPEN INNOVATION CONTEXT 30 April OPEN INNOVATION TECHNOLOGICAL CHALLENGES Rapid evolution of technological trends KNOWLEDGE DISTRIBUTED & INTERCONNECTED OPEN INNOVATION Difficulties to master internally all the competences / technologies needed increase the productivity of AD & XP Leverage external resources to increase the productivity of AD & XP internal resources. COMPETITIVE ENVIRONMENT IS FORCING TO INNOVATE THE WAY WE INNOVATE OPEN WHIRLPOOL AD = Advanced Development: Whirlpool R&D department XP = Cross Products categories: internal R&D categories that serve different product categories

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION ORGANIZATION AND SKILLS 30 April ORGANIZATIONSKILLS  Cross category accountable to manage Open innovation projects of all research categories  Open Innovation team manages also publicly funded projects  Open Innovation reports to VP of research and development  Strong technical competences  Business skills are required to consider different value proposition  Administrative roles are required, mainly for public funded projects OPEN WHIRLPOOL Open Innovation Leader Business Analysis ProjectManager Tech Scouter EMEA Public funding

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION PROCESS 30 April Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C AD Product cat and X Product Partnership Management Actively network externally to scout, identify, access and evaluate new technology opportunities with potential to advance AD/XP strategies Network Develop partnerships with key center of excellence both industrial & academic Partnerships Transfer technologies to AD and XP groups Transfer Leverage Public Funding Opportunities to support R&D initiatives Public Funding OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION PROCESS: INTERNAL GAP 30 April Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C AD Product cat and X Product Partnership Management  Consider knowledge needs  Evaluate external opportunities to cover the needs  Many solutions are already there  find it! OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION PROCESS: TECH SCOUTING 1/2 30 April Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C AD Product cat and X Product Partnership Management Scouting Tools IP Scan, OI networks, Intermediaries (Ninesigma, innocentive), Leverage existing Network Scouting Tools IP Scan, OI networks, Intermediaries (Ninesigma, innocentive), Leverage existing Network  Crowdsourcing can represent an opportunity for tech scouting CROWDSOURCING OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION PROCESS: TECH SCOUTING 2/2 30 April Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C AD Product cat and X Product Partnership Management Scouting Tools IP Scan, OI networks, Intermediaries (Ninesigma, innocentive), Leverage existing Network Scouting Tools IP Scan, OI networks, Intermediaries (Ninesigma, innocentive), Leverage existing Network  Leverage the knowledge of your employee TECHNOLOGY FORUMS team of Whirlpool people expert in a field and working allover the world – who meet to discuss a specific technical competency area to achieve alignment around OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION PROCESS: OPPORTUNITY ASSESSMENT 30 April Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C AD Product cat and X Product Partnership Management Potential drivers to be considered:  Impact of the collaboration on innovation pipeline (both in terms of ideas and project),  Speed of execution  Access incremental resource  Knowledge generated  Expected business returns.  Different indicators should be considered to evaluate external opportunities  Different skills required to take into account different aspects OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION PROCESS: OPPORTUNITY MANAGEMENT 30 April Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C AD Product cat and X Product Partnership Management  Link Open Innovation initiatives to your innovation processes  Apply Project Management to manage partnerships OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION: KEY LEARNINGS 30 April  TOP MANAGEMENT COMMITMENT  MAKE OPEN INNOVATION VISIBLE: ad hoc organization provided with different skills  MAKE OPEN INNOVATION WORK: ad hoc and tailored process  CONSIDER WHAT ALREADY EXIST: Importance of tech-scouting  DEMONSTRATE THE VALUE OF OPEN INNOVATION ACTIVITIES THROUGH APPROPRIATE METRICS  LEVERAGE PUBLIC FUNDING OPPORTUNITIES OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION AND PUBLIC FUNDING PROS  Stimulate long term research  Force multinational collaborations  Possibility to obtain financial support to “your” research projects 30 April Publicly funded projects can constitute an interesting trigger for Open Innovation Publicly funded projects present some drawbacks that need to be managed CONS  Rigid rules in the consortia creation  Risk to pursue a “financial” strategy  Management of projects is complex Open Innovation Publicly funded projects (e.g. 7 th framework program) represent an embryonic form of Open Innovation since they force firms to collaborate for achieving innovative outcomes. However they present pros and cons. OPEN WHIRLPOOL

WHIRLPOOL CORPORATION  CONFIDENTIAL OPEN INNOVATION: RESULTS 30 April Participations to several publicly-funded projects from 2009: OPEN WHIRLPOOL Creation of strategic partnerships in different knowledge domains: MaterialsElectronics EnergyMotors Creation of strategic partnerships with a leading academic institution : Technology district for the innovation in food processing and preservation