Carolina Tang / Javier Bengoa

1. Commercial Laundry Strategy Carolina Tang / Javier Bengoa

2. Agenda • Whirlpool Background • Industry Dynamics • Growth Opportunities • Competition Environment • Segmentation • Macro • Micro

3. Whirlpool Background Whirlpool Corporation • Administrative Center at Benton Harbor, Michigan, USA • Founded in 1911 by Lou Upton at Benton Harbor • Employees: 59,000 split into the following regions: • NAR (North American Region) • LAAG (Latin American Appliance Group) • Whirlpool Europe • WAAG (Whirlpool Asia Appliance Group) • Manufacturing, Marketing and Sales of home appliances • 25 brands world-wide (including affiliates)

4. Whirlpool Background Whirlpool’s global position today... #1 in North America #3 in Europe #1 in Latin America #1 Western white goods manufacturer

5. Whirlpool Background Whirlpool Corporation Units Shipped in 1998 • North America 17,755,000 units • Europe 9,774,000 units • Latin America 4,817,000 units • Asia 1,644,000 units • Others 42,000 units • Total 34,032,000 units

6. Whirlpool Background Whirlpool Sales… Unit Volumes

7. Whirlpool Background Whirlpool Sales… Net Sales

8. Whirlpool Background Pride with Passion Performance Whirlpool Vision…. Every Home... Everywhere

9. Agenda • Whirlpool Background • Industry Dynamics • Growth Opportunities • Competition Environment • Segmentation • Macro • Micro

10. Industry Dynamics Industry Overview • Commercial laundry is often a family owned business of highly independent entrepreneurs • Very competitive industry. • Price and margin erosion • Manufacturers are focused on cost cutting and economies of scale

11. Industry Dynamics Industry Overview • Customers do not perceive a compelling difference among manufacturers • Price is still the main driver for making decisions • Consumers do not request/ask for a particular brand of products • No brand loyalty • Low satisfaction / Low willingness to spend more money

12. Industry Dynamics Growth Potential • Market for commercial laundry will remain stable in the future • # of households w/o washer remain stable • # of apt. units per machine served is slightly decreasing • Slight growth in multi-housing offset by coin stores • Breakthrough opportunities: • In-unit laundry offers clear consumer benefits (opportunities for domestic lease and/or pay per use domestic) • Pay per use domestic products attractive alternative to single households • Shifting life style encouraging outsourcing fabric care - Drop-off service for Laundromats • Export opportunity a bonus

13. Industry Dynamics Competition

14. Agenda • Whirlpool Background • Industry Dynamics • Growth Opportunities • Competition Environment • Segmentation • Macro • Micro

15. Segmentation Macro Segmentation Low Industrial Consumer Interface OPL Coin MHL High Small Load Large Load Product Type Entering OPL (On Premise Laundry) and Industrial requires significant investment and produces less synergy with Brand Value Creation strategy Low risk approach is to enter and dominate MHL and Coin before entering OPL and industrial

16. Segmentation Micro Segmentation • Familiar and non-chain laundromats • Laundry owners who are the decision makers • Laundromats with Domestic-type washing machines (non large chassis washing machines)

17. Segmentation Property Owner/ Management Market Participants Route Operator Multi-housing/ dormitories residents Manufacturer Property Owner Operated Ldy. Distributor Laundromats Single Family House Hold Trade Partner Customer Consumer

18. Segmentation Decision Makers • Value from affordable high quality • Speed, Large capacity • Low acquisition cost • Smart Cards & Coin scalability • Low life-cycle cost. • Fast repairing (15 min) • Easy, fast service installation (12 minutes) • Duraprint finish console (looks new) • Complete support & Service for commercial trade partners • Availability

19. Segmentation Market Size • Coin Stores: • 30,000 Laundromats • 52 machines per store • 1.6 to 1.8 million installed machines • 7.5% to 15% replacement rate • 150,000 to 200,000 units/year

20. Segmentation Coin Stores • Total # of coin stores: 30,000-35,000 • Average turn per day: 4,7 • New construction slowed by heavy hook-up fees imposed by local government, increasing pressure on water reuse • National/Regional chain emerging with mixed result, multi store ownership increasing • Industry image improving, promoting as fabricare center, adding service such as drop-off, folding, etc… • Owners handle most of maintenance/services, good loyalty to distributors • Biggest problem: high utility cost (15-25% of total expense)

21. Segmentation Coin Store Product Mix Front load • Top load washer still biggest, but is losing quick • Front load washer gaining share, leading by Maytag High Efficiency model • Product mix varies across regions, with northeastern leading the trends to FL • Whirlpool competes in top load, and #18 dryer market, total about 42% of installation and about 115K new purchase Dryer

22. Segmentation Distribution Channel • Market size: 200k • Fragmented market, over 280 in total, mostly family owned • Big companies trying to grow by consolidation/geographical expansion, resulting in increasing # of locations • Exploring new opportunities such as domestic lease, Laundromat, distributorship • Targeting owner operated laundry (20% of MHL) as growth opportunity Route Operator:

23. Segmentation Distribution Channel • Very Fragmented market, about 350 specialized dealers, mostly family owned, local • Some big retailers and multi-housing distributors carry commercial laundry products, competing more on owner operated segment • Specialized dealers usually offer full service to customers, including arranging financing, design, location, selection, brokerage • Strong customer loyalty to distributors • Trade margin: TL 12-15%, FL 25-30%

24. Segmentation Positioning Statement • Whirlpool delivers long term performance through manufacturing quality. We provide value from affordable high quality, easy and fast installation setup and maintenance.

25. Q & A