WHIRLPOOL CORPORATION WHIRLPOOL – INTEGRATED SUPPLY CHAIN WHIRLPOOL CORPORATION CONFIDENTIAL 1 EVERY HOME, EVERYWHERE World’s #1 major appliance company $18+ billion in revenues in 2010 World headquarters in Benton Harbor, Michigan Products sold in more than 130 countries 71,000 employees 66 manufacturing and technology centers WHIRLPOOL CORPORATION CONFIDENTIAL 2 NORTH AMERICA REGION MANUFACTURING LOCATIONS Amana, Iowa--Refrigerators Tulsa, OK - Cooking Ottawa, OH--Freezers Ft. Smith, AR - Refrigerators Clyde, OH--Washers Marion, OH--Dryers Ramos Arizpe, MEX--Refrigerators Monterrey, MEX—Refrigerators/Washers Findlay, OH--Dishwashers Greenville, OH--Portables Cleveland, TN--Cooking Celaya, MEX—Cooking/Refrigerators WHIRLPOOL CORPORATION CONFIDENTIAL 3 WHIRLPOOL OHIO OPERATIONS The largest manufacturing center for appliances in the North America Findlay Division Clyde Division Dishwashers Ottawa, Ohio Clothes Washers Marion Division Freezers Columbus RDC Greenville Division Clothes Dryers Stand Mixers WHIRLPOOL CORPORATION CONFIDENTIAL Full Mix Distribution Center 30th largest employer in the state with 10,000 employees 4 CURRENT ENVIRONMENT Consumer confidence still low Influences the way consumers buy appliances Sustained level of high unemployment New and existing home sales have stabilized over last few months, but remain at all time low Retail markets have lost momentum VOLATILE DEMAND ENVIRONMENT…. REQUIRES A VERY FLEXIBLE AND PREDICTABLE SUPPLY CHAIN WHIRLPOOL CORPORATION CONFIDENTIAL 5 INTEGRATED SUPPLY CHAIN MODEL AND DELIVERABLES SUPPLIER JIT Supply to Clyde Local - from mfg location Distant – supplier managed local warehouse Tier 1 manages Tier 2 World Class Quality MANUFACTURING Low cost Highly flexible Stable, predictable and reliable Small batch size Minimal supplier inventory OUTBOUND LOGISTICS Build to order Ship directly off of assembly line rather than ship from inventory Extraordinary product availability Agile supply chain delivering best quality, best delivery and best cost WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 PRESENTATION TITLE 6 KEYS TO SUPPLY CHAIN SUCCESS Parts Supplier Whirlpool Factory Distribution Center Customer World Class Quality Quality parity is a losing proposition Demonstrated capability (supplier audit, PPAP, on-going performance) Volume and mix flexibility Requires entire supply chain (incl. plant) to be responsive to changes Ability to deliver product in a predictable and reliable way Commit to a plan and deliver the plan Prefer supply from supplier location or local warehouse Synchronized to daily / hourly pull signal Low working capital Low in-process and finished goods inventory levels WHIRLPOOL CORPORATION CONFIDENTIAL 7 KEYS TO SUPPLY CHAIN SUCCESS Parts Supplier Whirlpool Factory Distribution Center Customer Competitive cost structure and competence for cost management Capability to deliver year over year cost reduction Competitive total landed cost 90 day pay terms Manage complexity brought about by product differentiation Processes / systems to deal with component variation Exceptional technical competence Open, candid and willing to work closely with Whirlpool’s team Partner with Whirlpool and deliver best quality, best delivery and best cost WHIRLPOOL CORPORATION CONFIDENTIAL 8 WHIRLPOOL CORPORATION Thank you Jeff Durham, Vice President, Clyde Operations jeff_durham@whirlpool.com WHIRLPOOL CORPORATION CONFIDENTIAL 9