1. 1 Whirlpool (A) & (B) Wednesday 21st April 2010 Stephen Spring sfspring@mac.com

2. 2 “Innovation is not our strategy. Our strategy is brand-focused value creation based on creating unmatched levels of customer loyalty. Innovation is a critical enabler of the strategy” Dave Whitwam 1999

3. 3 Migration Path for Kitchen Aid Food Preparation

4. 4 High Level Commitment In 2002, compensation packages of senior executives were changed so that 30% of bonuses depended on the achievement of innovation-related goals. Change at Whirlpool (C)

5. 5 Results I: Scope April 2004, 257 innovation products in the pipeline –160 at business concept stage –58 at experimental stage –9 at prototype stage –30 in the process of scaling up Projected revenue $2Billion

6. 6 Results II: Appliance Price Trends 199620002004 Industry Price Index105.199.2 92.3 Whirlpool Price Index99.5103.3

7. 7 Results III:Industry Margins 200120022003 Whirlpool 4.4% 7.2% 6.8% GE Appliances16.7%14.3% Electrolux 2.4% 2.8% Maytag 7.3% 7.25 4.1%

8. 8 Building innovation as a long-term capability has changed our company in ways that we never imagined. We beat ourselves up a lot because we’re not where we want to be, but we’ve come a long way. We’re focusing now on extracting value from the core innovations that we launched into the marketplace, maximizing the results and learnings from each innovation, and refining the measures and skills needed to take this to the next level. We have these opportunities because we’ve spent the last five years getting the innovation platform to the point it is today... The excitement and energy that innovation has created in our company is incalculable. Dave Whitwam