Uploaded on

Corporate Press Kit for Whirlpool EMEA (Europe, Middle East and Africa). Official to be used with journalists and other stakeholders

Corporate Press Kit for Whirlpool EMEA (Europe, Middle East and Africa). Official to be used with journalists and other stakeholders

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,870
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
37
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Whirlpool EMEA, Office of Corporate Relations & Communications Corporate Press Kit Spring 2012
  • 2. 2 | P a g e INDEX Page 3…………………………………………………………… Key facts Page 5 …………………………………………………………… Awards & Recognitions Page 13……………………………………………………………. Strategy Page 17……………………………………………………………. Innovation Page 23……………………………………………………………. Environment Page 31……………………………………………………………. Factories Page 34……………………………………………………………. Leadership Factory Page 39…………………………………………………………. CSR Page 42……………………………………………………………. Quality
  • 3. 3 | P a g e KEY FACTS The world leader in the production of major domestic appliances. WHIRLPOOL CORPORATION  Whirlpool Corporation is the world leader in the production and marketing of major domestic appliances. With its 100 years of experience, Whirlpool’s market share is 60% larger than that of its nearest competitor.  Whirlpool Corporation is based in Benton Harbor, Michigan (USA), whilst its EMEA Operations Centre is located in Comerio (Varese), Italy.  The company employs approximately 68,000 people around the world, has production plants in 13 countries across 4 continents and markets its products under 11 major brands in over 170 countries.  Whirlpool Corporation is the largest manufacturer of major domestic appliances in North America, in Latin America (with double the market share of its nearest competitor) and in Asia (amongst the non-Asian producers). Whirlpool is the fourth largest European manufacturer1 , where the Whirlpool brand is one of the leaders in terms of units sold.  In 2011, Whirlpool Corporation’s sales reached 18.7 billion dollars, with 390 million dollars profits and a production of 53.753.000 units.  Whirlpool’s principal brands are: Whirlpool, KitchenAid, Maytag, Bauknecht, Brastemp, Consul.  Whirlpool appliances can be found in 200.000.000 homes around the world and every second a consumer buy a new product from one of the Whirlpool brands. 1 T9 sell out market share calculated on 23 countries, GFK 2011.
  • 4. 4 | P a g e WHIRLPOOL EMEA  Whirlpool starts off in the European market in 1989 through a joint venture with Dutch Philips Gloeilampenfabrieken N.V.  Whirlpool EMEA becomes Whirlpool Corporation’s wholly owned and controlled subsidiary in July 1991, when Whirlpool buys out Philips for its remaining stake in the business.  Currently, Whirlpool EMEA has approximately 12.000 employees in 32 different countries. Its Operations Centre is in Comerio, Varese, near Milan, Italy.  Whirlpool EMEA’s operations generate nearly one fifth of the group’s revenue and the Whirlpool brand is the second European brand in terms of number of units sold.  In 2011, Whirlpool EMEA’s sales reached 3.3 billion Euros, with 12.3 million units shipped  On top of the Whirlpool brand, the company sells its products through other brands such as Ignis, Bauknecht, KitchenAid, Laden (in France) and KIC (in South Africa). Principal products  The principal products sold by Whirlpool in Europe include washing machines, dryers, clothes fresheners, counter-top small appliances, dishwashers, refrigerators, freezers, microwave ovens , built-in cooktops and ovens.  These appliances are manufactured in its European and South African based production plants, namely in France, Germany, Italy, Poland, Slovakia, Sweden and South Africa.
  • 5. 5 | P a g e AWARDS & RECOGNITIONS Whirlpool is an award-winning manufacturer across all areas of its business. Some examples of awards that Whirlpool Europe has won are listed below. EMEA AND GLOBAL 2011  Whirlpool’s factory in Poprad won the 2011 Annual HR Award, HR Gold, one of the most significant awards for management and development of human resources in Slovakia. The award was for the project Design & Implementation of a Skills Matrix for production operators and team leaders. The winning project became an integral part of the Poprad production process and daily operations.  Whirlpool’s factory in Poprad was awarded with the National Quality Award of the Slovak Republic 2011, the most prestigious national award for organizations involved in production or provision of services in the Slovak Republic. Whirlpool was evaluated in the category ‘Product Producing Organization over 251 employees’.  The Whirlpool brand won three international 2012 iF Product Design Awards. The iXeliumTM Hob and the two concepts, Fireplace and FreshConnect, impressed the iF jury, composed of experts and renowned designers from all over the world. The iF Product Design Award covers all areas of product design and serves as a platform for design-related innovations.  The Bauknecht brand BCTM 9100 PT built-in oven won the product design award 2012 at this year’s iF awards ceremony. In addition to the purist aesthetics of the oven with integrated handles in the KOSMOS design line, the appliance’s eco-friendly PureClean technology convinced the jury.  Whirlpool South Africa was awarded 'Most Improved Supplier 2011' by Iser, the biggest buying group in South Africa.  Bauknecht was honoured by the Plus X Award jury for the third consecutive year with the highest distinction “Most Innovative Brand of the Year” 2011 in the product group Major Domestic Appliances.  With GREENKITCHEN 2.0, the Bauknecht brand in Germany won the ‘Lifestyle’ category of the Clean Tech Media Award 2011, one of the most important environmental awards in Germany.  Just six months after launching its Facebook page, Whirlpool EMEA won the International Stevie Award for Best Facebook Page in the 2011 International Business Awards, the only global, all- encompassing business awards program honoring great performances in business.
  • 6. 6 | P a g e  The Bauknecht brand fridge/freezer combi KGN 339 SuperEco A++ IN won a test carried out in the 03/2011 issue of German consumer magazine Haus & Garten on 10 fridge/freezers. A jury of 10 test engineers awarded the winning result to the Bauknecht appliance based on four decisive criteria: “Function”, “Ease of use”, “Quality” and “Ecology”.  The Bauknecht brand in Germany received a total of 14 Plus X Award endorsements at the 2011 Plus X Award ceremony, including “Best Product of the Year 2011” in five different award categories, covering all product areas. The ‘Best Product’ award is conferred on a product in each category from all the appliances submitted. Bauknecht was awarded for the following appliances: The EcoStyle washing machine; the EcoStyle dryer; the ZEN toploader; the MW 79 IN microwave; and the KOSMOS fully automatic coffee machine.  For the seventh time, Whirlpool Hungary received Superbrands status and for the second time, they were awarded Business Superbrands status.  The Whirlpool brand’s Green Generation product range was awarded Products of the Year 2011 in the Major Domestic Appliances Ranges category by leading UK electrical goods industry magazine Get Connected.  In EMEA, The KitchenAid (KA) Chef TouchTM received the 2011 Red Dot Award in the Product Design category for its outstanding design concept and quality, its value and innovation content. The KA Chef TouchTM system empowers Sous Vide cooking: a delicate high-quality, low-temperature cooking method that unleashes culinary creativity.  The Bauknecht brand was awarded the “red dot design award honourable mention 2011” for the KOSMOS oven, which is characterised by its streamlined design and great ease of use.. The Red Dot award, the largest and best-known design competition in the world, is given to products for their outstanding design.  Whirlpool Shared Services Center in Ireland was named one of the Best SME Workplaces 2011, according to a detailed assessment by the Great Place to Work® Institute Ireland. This is the seventh time in eight years that the SSC has successfully made the Best SME Workplace List.  The KitchenAid Artisan Culinary Jar received the German "Kitchen Innovation of the Year 2011" award from the LifeCare consumer initiative, which honors particularly well-designed products with the 'Kitchen Innovation of the Year’ award. Selection criteria are functionality, benefits, innovativeness, design, ecology and sustainability.
  • 7. 7 | P a g e  The Bauknecht brand in Germany scooped the “LifeCare – Better Living” special prize for Responsible Company for the Greenkitchen 2.0 project. This highly coveted prize covers the categories ‘Protection of Resources’ and ‘Sustainability’, and was awarded in recognition of Bauknecht’s ongoing efforts to help protect the environments. Bauknecht also won prizes in the Kitchen Innovation of the Year section of the initiative: consumers showed their appreciation of Bauknecht’s user-friendly products right across the board by naming the brand “Favourite Brand - Platinum Consumers’ Choice.” The ETMI 8740 induction hob won in the category “Best in test – Across all Categories”, thanks to its intelligent innovations and ease of use. Other “Kitchen Innovation of the Year 2011” winning products were the PowerClean Max dishwasher, The Kosmos automatic coffee machine, and the Kult side by side refrigerator.  The Bauknecht brand in Germany was awarded the “universal design consumer favorite 2011” prize for its EcoStyle washing machine. The jury of consumers judged the EcoStyle washing machine WA UNIQ 814 FLD on six criteria, including intuitive operation, degree of innovation and sustainability.  Whirlpool Romania won the Superbrands 2011 award.  In the US,The Whirlpool brand was recognized by the Public Relations Society of America (PRSA) for superior performance in the area of media relations. The coveted 2011 Bronze Anvil Award was awarded in the Media Relations - Consumer Products category based on a year-long media relations campaign around the launch of its Vantage laundry pair. The campaign was executed in partnership with Whirlpool PR agency of record, Peppercom.  Whirlpool Corporation was named to Fast Company magazine’s 10 Most Innovative Consumer Products Companies list for its efforts to bring Smart Grid appliances to the market. Whirlpool ranked sixth on the list. This is the second consecutive year Whirlpool has been named to the list.  Whirlpool Corporation was ranked 14th on the 2011 list of the Most Respected U.S. Companies by Forbes magazine and the Reputation Institute. This is the fourth consecutive year Whirlpool has been included in the Most Respected Companies list.   Whirlpool Corporation was awarded the 2011 ENERGY STAR® Sustained Excellence award by the U.S. Environmental Protection Agency (EPA). The award recognizes the company's leadership in offering consumers energy and water efficiency through its leading home appliance brands. Whirlpool was the only appliance manufacturer to receive the Sustained Excellence award, the highest possible ENERGY STAR award. This is the company's 12th top ENERGY STAR award and sixth consecutive Sustained Excellence win. Whirlpool has been honored with 23 ENERGY STAR awards overall, more than any other appliance manufacturer.  Whirlpool Corporation was named one of Fortune magazine’s World’s Most Admired Companies, receiving the No. 1 ranking in the Home Equipment, Furnishings industry. Fortune magazine’s World’s Most Admired Companies list is the most prestigious corporate reputation award a company can receive. Whirlpool Corporation’s highest scores came in the financial soundness, long- term investment, quality of management, innovation and social responsibility categories.
  • 8. 8 | P a g e  Whirlpool Corporation placed No. 85 in Corporate Responsibility Magazine's 100 Best Corporate Citizens list, which is regarded as the top corporate responsibility ranking based on publicly available information. This is the ninth time the company has been named to the list in the past 12 years. Inclusion on the 100 Best Corporate Citizens list reflects efforts to enhance the company’s level of publicly available sustainability reporting and is based on input from more than 100 employees around the globe.  Whirlpool was listed No. 49 on the 2011 DiversityInc Top 50 Companies for Diversity for the company’s demonstrated use of measurable diversity management best practices and results and long-standing commitment to diversity and inclusion across Whirlpool Corporation’s global operations.
  • 9. 9 | P a g e 2010  The Whirlpool brand won two prizes, and the Bauknecht brand three prizes, in the international iF product design awards 2011. For the Whirlpool brand, the Glamour oven and the Side by Side refrigerator from the Glamour Bronze Line took one prize, while the Fusion Green Generation oven took the other. For Bauknecht, the Built-In oven BLPM 8100 PT, the Built-In microwave EMCHD 8145 PT and the built-in steamer ESTM 8145 PT, all in the KOMFORT range, were the prize winners.  In Germany, the Bauknecht PowerClean Max dishwasher models GSFP 7153 TD IN, GSFP 7153 TD WS, GSIP 6143 TR PT, GSIP 6143 DI PT received the Plus X award for high quality, ease of use and ecology.  The KitchenAid Artisan Blender was awarded prestigious UK consumer journal Which?’s, ‘Best Buy’ in the July 2010 issue, and featured on the magazine’s cover.  The Whirlpool brand in Poland has been awarded the Reader’s Digest European Trusted Brands 2010 Crystal Award, one of the largest consumer surveys in Europe. The award, based on spontaneous consumer votes, is assessed by respondents according to four criteria: quality, value in relation to price, strong image and understanding of customer requirements.  Whirlpool Hungary once again won the award of Superbrands and Business Superbrands in 2010. This was the 6th time that Whirlpool Hungary received this prestigious Superbrands award and the 2nd for the Business Superbrands.  Whirlpool Glamour oven received an Honourable Mention for the 2010 Red dot award, for "outstanding design, belonging to the best in the industry."  The Whirlpool brand became the most Preferred Brand in Italy, based on research conducted by the Demoskopea & Research Plus agencies in February 2010. This was a first time ever in Italy: after 20 years of presence in Italy, Whirlpool dislodged Hotpoint Ariston from its N°1 position.  The KitchenAid brand took the prize for the ‘Best corporate cookbook in the world’ for the 2009 New Mixer Cookbook. 136 countries participated in what was the 15th edition of the Gourmant World Cookbook awards competition at the Paris Cookbook Fair held in Paris in February, 2010.  The Bauknecht Microwave Recipe Book, ‘Recettes Rapides, Saines et Surprenantes au Four à Micro Ondes’ (Fast, Healthy and Surprising Recipes for Microwave Ovens) won the ‘Best Corporate Cookbook 2009’ award in Belgium, from the organization ‘Gourmand’, as part of the Gourmand World Cookbook Awards 2009.
  • 10. 10 | P a g e  For the fourth year, Bauknecht Germany won awards in the ‘LifeCare – Better Living’ initiative. This year, the brand won the ‘Kitchen Innovation Prize 2010” in for the Kult oven and the Komfort design range, which were awarded for their qualities in the four categories Ease of Use, Innovation, Product Benefits and Design.  Whirlpool France was named best "Customer Care service of the year 2010" in the Major Domestic Appliances sector of the ELU Service Client de l’Année awards, which measure companies on the quality of their customer relations. Additionally, the Whirlpool France website was placed at number 3 out of all 98 consumer websites rated across all sectors in terms of self-service and assistance given to consumer. 2009  Whirlpool Corporation has been recognized as a 2009 American Society for Training and Development (ASTD) BEST Award winner. The BEST Awards recognize organizational commitment to employee learning.  The Whirlpool Corporation 2008 annual report received five awards as part of the 17th Annual American Business Communicators Annual Report Competition. The Whirlpool annual report was recognized in the following categories:  First place, Letter to Shareholders  First place, Overall Annual Report  First place, Cover Design  Outstanding Creativity, Cover Design  First place, Photography or Illustration  In December 2009 Whirlpool Europe came out a clear winner in the most prestigious category “Electrical and electronic products (Hi-Tech)” of the Ecohitech award, the first and most important Italian prize in the field of sustainability and energy efficiency, for its Green Generation product range.   Between January and October 2009, Whirlpool microwave ovens won a total of 13 consumer test institute awards across Europe, seven of which were number 1 in the Best of Test and/or Best Buy category. Many of the awards highlight the quality of cooking performance, together with ease of use and opportunities offered by special features such as the grill and the combi  Whirlpool won the prestigious French Janus design award 2009 for the Glamour oven – the 11th Janus award since 2002
  • 11. 11 | P a g e  Whirlpool’s Max 28 Grill Microwave oven picked up a Best Buy award in the August 2009 issue of Which?, the UK consumer magazine.  Whirlpool’s FT337 combi microwave oven was named Best Buy and Best in Test in the September 2009 issue of French consumer magazine Que Choisir. Coming top in the test that compared 9 combi ovens offering microwave, grill and convection functions, the Family Chef was particularly appreciated for its ability to uniformly reheat dishes taken from the refrigerator and for its ability to prepare well a variety of different dishes.  For the fifth year in a row, Whirlpool Corporation was named to the 2008/2009 Dow Jones Sustainability Index (DJSI), an international stock portfolio that evaluates corporate performance using economic, environmental, and social criteria.  Whirlpool Corporation’s Maytag and KitchenAid brands receive two Excellence in Design (EID) Awards in Appliance Design Magazine's Excellence in Design competition 2009. The two winning products are the Maytag Bravos(R) top-loading washer and the KitchenAid Architect Series Gas Cooktop Model.  Whirlpool Europe received Italy’s top innovation award from the hands of President Giorgio Napolitano. The “Premio Nazionale per l’Innovazione” recognition came after Whirlpool Europe won the top award in Confindustria’s “Premio Imprese per l’Innovazione.”   The Imprese per l’Innovazione award is organized by Confindustria, the Confederation of Italian industries, and represents the interest of Italian companies to leading political and administrative institutions, including parliament, the government, trade unions and other social partners. The prize intends to support a culture of innovation and research across all industry categories in Italy and was open to companies with more than 1500 employees for the first time in 2009.  For the third year running, Bauknecht Germany won awards in the “LifeCare – Better Living” initiative. In addition to three product awards, Bauknecht also scooped the special “Responsible Company” award for its design concept “GreenKitchen.” The project received the title, which is in its inaugural year, in the categories “Conservation of resources” and “Sustainability.” The products awarded were: the side-by-side fridge, the KOSMOS built-in oven and the Deep Silent hood.  Three KitchenAid products were recognized at the Plus X Awards in Germany. The KitchenAid KDIX 8810 In-Sink Dishwasher was recognized for Ease of Use; the KitchenAid Multi Flow Built-in Oven KOMS 6610 received a Plus X Award for Design; the KitchenAid KRAB6010 Shock freezer won an award for Innovation.  Whirlpool Side-by-Side Espresso won OK! Style Award 2009 in Germany in the High Tech category. The award honors creative performance in design and style in the categories of Fashion, Beauty, High-Tech, Automobile, Film & TV, Music Products.
  • 12. 12 | P a g e  A total of nine Bauknecht products were recognized in three categories at the Plus X Awards in Germany. The Bauknecht brand was also selected by the Plus X judges as this year’s Most Innovative Brand. The award winning products and categories were: o Plus X Award for Ease of Use and Ecology: The Bauknecht Dishwasher EcoStyle GSF 190 Power IN, Dishwasher EcoStyle GSF 180 Power WS, Fridge Freezer KGIE 3205/A++ and Washing Machine EcoStyle WA Pure XXL 34 FLD o Plus X Award for Ecology: The Bauknecht Hood Deep Silence DSTI 5410 IN/PT, Hood Deep Silence DST 5490 IN/PT, Refrigerator KRIF 2205/A++, Refrigerator KVIF 2005/A++ o Plus X Award for Design: The Bauknecht KOSMOS Built-in Oven BLTM 9100 IN  Whirlpool’s Shared Services Center in Ireland was named for the sixth time as one of the Top Best 50 Companies to work for in Ireland.  Superbrands, the global branding authority present in 82 countries, granted Whirlpool Slovenia Superbrand status for 2008.  Whirlpool Corporation was recognized with the 2009 ENERGY STAR Sustained Excellence award by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). The award recognizes the company's leadership in offering consumers appliance energy and water efficiency through its portfolio of brands. This is the company's 10th ENERGY STAR award and fourth consecutive Sustained Excellence win.  Whirlpool Corporation was named to the prestigious Chief Responsibility Officer magazine’s “100 Best Corporate Citizens” list. This is the eighth time Whirlpool, which ranked 51st this year, has been named to the list.  Whirlpool Corporation was named one of FORTUNE magazine’s “Most Admired Companies” in the electronics industry. Whirlpool ranked sixth overall in the electronics industry and saw its industry rank rise from 11 the previous year.  Whirlpool Corporation’s 2007 annual report received the Grand Award for Annual Reports, North America, in the 22nd Annual International 2008/09 MERCURY Awards Competition.
  • 13. 13 | P a g e Whirlpool Corporation’s Strategy highlights O N E C O N S U M E R every home, everywhere “We exited 2011 with positive momentum, and we are well positioned for margin expansion and earnings growth in the coming year. In 2012, we will execute strong actions to continue to improve operating margins through our capacity and cost-reduction initiatives, ongoing productivity programs, improved product price and mix, and by accelerating our new higher-margin product innovation to the marketplace +…* We are committed to driving further growth through our brand value-creation strategy – focusing on margin expansion by delivering consumer-relevant innovation, providing the industry’s best service to the trade and our consumers, and driving lower costs and higher product quality in every aspect of our business. “ Jeff M. Fettig, CEO, Whirlpool Corporation Whirlpool strongly believes in the power of brands and innovation to break out of an industry stalemate and challenge the market. In 2011 Whirlpool EMEA invested nearly $100M in the constant development and improvement of its industrial footprint. At global level, Whirlpool Corporation invested nearly $550M in Research & Development for the creation of innovative products that consumers are proud to own. Whirlpool is presently one of the top two leading brands in Europe. An extraordinary result, achieved through pride, passion and performance. The same elements that have taken Whirlpool Corporation to its position as world leader in the manufacturing and marketing of major home appliances. “We have continued with our strategic investments in consumer-driven innovation to support our brands, and this proved to be a winning move,” José Drummond, president, Whirlpool Europe.
  • 14. 14 | P a g e INNOVATION THAT CONSUMERS DESIRE Whirlpool knows that long-term growth opportunities are abundant, and will continue to invest in consumer-relevant innovation, appliance growth in new and emerging markets, expansion into higher- margin, faster-growing adjacent businesses, and advancement of its global brand portfolios. Keeping its core appliance business healthy and growing is critical to Whirlpool’s success. Innovation is the fundamental driver of its growth, as it has been for the last century. While competitive price promotions may deliver short-term market share gains, only strong, preferred brands with consumer- relevant innovation win in the long term. Whirlpool is increasingly able to leverage the strength of its global brand names by expanding into higher-margin, faster-growing product lines that complement its core appliance business. Today, branded consumer product businesses outside Whirlpool’s traditional core – including garage organization, countertop appliances and water filtration – represent approximately 22 percent of annual revenues and are growing at a double-digit pace. In addition, the company expects to see growth in emerging markets as more consumers are able to purchase appliances and benefit from the quality and convenience they provide. The potential in developing countries is tremendous if one considers the population and economic growth trends as well as the very low appliance penetration levels. Whirlpool believes people everywhere deserve a comfortable place to call home with access to fresh food, clean clothes and drinking water. Whether it is to provide basic refrigeration to a consumer in India or a water- and energy-efficient laundry pair to a consumer in Germany, Whirlpool stands ready to improve the lives of consumers each and every day all around the world.
  • 15. 15 | P a g e 2012 PRIORITIES AND OBJECTIVES Whirlpool is executing robust initiatives to continue to improve operating margins in 2012 through a strong cadence of innovation, capacity and cost-reduction initiatives, ongoing productivity programs and previously announced price increases. Collectively, these priorities, despite a still-weak global economy, will enable the company to have a strong year of operating performance improvement: Focus on consumers – Innovation leadership  The objective is to become the undisputed leader in innovation thanks to consumer and shopper insights. Whirlpool extensive research and focus on consumer needs helps define what innovation is really relevant to consumers across the region.  Shopper insights help focus on what really matters when consumers enter a retail facility or decide to buy a new appliance  The result is a range of products with winning innovative features that really help improve consumers lives Brand Focus  Whirlpool EMEA possesses the most focused brand portfolio in the white goods industry. More than 90% of European revenues come from the sales of just two brands: Whirlpool and Bauknecht. The company objective for the Whirlpool brand is to be one of the top 3 brands in each country. Bauknecht on the other hand is one of the strongest brands in Germany, Belgium and the Nordics and its position will be further strengthened. The built-in sector  The aim is to reach one of the top two positions as largest European manufacturer of built-in major domestic appliances. The built-in sector plays a very important role in Whirlpool EMEA’s strategy, as it offers higher profit margins. Margins  Improving margins is one of the top strategic priorities for Whirlpool EMEA. It can be realized through the implementation of price increases to reflect the products’ premium qualities versus the competition; and a solid management of the cost structure  Quality: the constant enhancement of product quality – evidenced by a falling Service Incident Rate - is also helping Whirlpool making substantial savings on the cost of quality, thus improving margins and breaking away from the competition.  The objective for Whirlpool EMEA is to reach 8% profit margin
  • 16. 16 | P a g e Unidisputed quality leader  The ambitious objective is to become the undisputed quality leader in the industry, which on top of bringing on benefits in terms of margins and cost of quality, will strongly reinforce the brands’’ reputation and customer loyalty Growth in traditional and emerging markets  Whirlpool EMEA is concentrating on the driving force of the emerging markets. At present it is fruitfully planting the seeds for the future growth engines in the Middle Eastern and African markets  At the same time, Whirlpool EMEA is also keeping its focus on consolidtating and growing its share in its most traditional European markets. The leadership factory  Whirlpool’s leadership in innovation and design is widely acknowledged, and so is its pioneering spirit in the field of sustainability. Its major brands, Whirlpool, Bauknecht, KitchenAid, Brastemp, are synonymous with success, quality, and customer loyalty. Yet there is one more “product” Whirlpool is proud of consistently delivering over the years. One that does not often get into the limelight, one that does not get launched on any market, but one that is fundamental to Whirlpool’s continuing success: leaders  In Europe, Whirlpool is capable of offering international opportunities and challenges, with a flexible structure for career advancement and great opportunities to experience different roles in the organization. Every element in the process of this “leadership factory”, from finding and attracting talent, to on-boarding and career design and management, is aimed at producing highly skilled, motivated “tough” individuals who live and breathe the Whirlpool values of diversity, integrity, respect, team work, and spirit of winning. Such leaders drive change and business strategy, they inspire their teams and support them, and most of all they are winners in the marketplace. RIGHT FOUNDATION FOR SUCCESS “As we begin 2012 – and our second century of operations – I am optimistic about the opportunities we have created at Whirlpool Corporation to deliver positive results and win in the marketplace. We have empowered our people to do what no other appliance company can match – to Improve Lives … One Home, One Family at a Time … through World-class Products and Services. We make household chores easier so that families can spend more time together. This clear sense of purpose unifies our global workforce and inspires the society-transforming innovations that ultimately drive profitable growth and create shareholder value. “ Jeff M. Fettig, CEO, Whirlpool Corporation
  • 17. 17 | P a g e CONSUMER DRIVEN INNOVATION “At Whirlpool we don’t design products to win awards. We want to sell them, so we listen to those who will buy and use our appliances” Alessandro Finetto, senior director, Global Consumer Design upon winning the 2011 IF Gold Award for the Ixelium flat burner hob A WAY OF THINKING Innovation is the life-blood of Whirlpool Corporation’s brands. It is a way of being and thinking able to break patterns and capture new and different ways of viewing reality. It is a way of being ready and fast but also open and able to seek out real-life insights and different, ever-changing lifestyles. At Whirlpool Corporation, the objective of innovation is to make products that people want to own in their homes. It is that simple. With that mindset, Whirlpool continually looks forward, seeking opportunities to innovate at new levels, to figure out how to make the best appliances better to delight consumers. Its innovations reflect a strong connection with consumers and a commitment to focusing intently on consumer needs and the ways they use the products. In this way, Whirlpool is creating value for the company, its employees and its consumers’ families for generations to come. The “revolution”, that led Whirlpool to focus on the strength of innovation, started at the end of the ’90’s, when Dave Whitwam, then Whirlpool Corporation CEO, decided to break the stalemate in the white goods industry and challenge a market ruled by price. In order to win this challenge, he resolved that innovation would be Whirlpool’s core strategy and Whirlpool people worldwide would be able to suggest new groundbreaking ideas. Today, Whirlpool and its brands are globally recognized as a household name for innovation that really can make consumers lives easier, and better. How Whirlpool defines Innovation “Innovation provides unique and compelling solutions valued by our customers and aligned to our brands; creates competitive advantage that is difficult to copy; and creates differentiated shareholder value.” The definition is very important to guide the selection of innovations to fund. Whirlpool makes over fifty million appliances per year, amounting to 1.5 appliances per second. Today one in four of these meet Whirlpool’s innovation definition.
  • 18. 18 | P a g e From Need to Product Consumer insight is key to Whirlpool innovation. The starting point of any winning product innovation is invariably the consumer’s expressed, or latent, need for a particular feature or solution to one of life’s daily challenges, big or small. Sometimes ethnologists need to enter the arena well before the designers, to have a better understanding of consumers’ lifestyles and the social conditions of the markets in which Whirlpool products will compete. For Whirlpool, the four main areas of opportunity for inspiring innovation are Connectivity, i.e. the appliances interaction with smart grids; Energy and Water Efficiency through integrated systems such as Greenkitchen; Food quality maximization through perfect preservation and cooking; and serving the new needs of constantly evolving lifestyles. On this last point, the kitchen, for instance, is no longer the place where one simply stores and prepares food. It has become a focal spot for socializing and where most of the emotional part of domestic life is expressed. In terms of products being actually launched on the market, in 2011 and 2012, this translates in the further development of the 6th sense concept with new, enhanced features; the continuous improvement of the user interface with a smart-phone-like user experience both in terms of connectivity and emotional impact; the introduction of new, emotional elements, such as light to guide the user through the different usage stages, and award-winning design to thrill consumers and arouse their desire for a beautiful object. “We aim at making our products smarter, even emotional. If there’s no desire for them, there’s little market. We try and make the user experience similar to that of successful consumer products, such as smart-phones or tablets” says Finetto. Research and Design projects A true pioneering spirit is part of Whirlpool’s DNA and drives research and design projects that anticipate future scenarios and support product innovation in a constantly evolving world. Through these research projects Whirlpool widens its knowledge and offers innovative answers to the new needs dictated by the social and technological evolution of society. To promote free exchange of ideas and harbour new stimuli, Whirlpool EMEA’s Global Consumer Design works hand-in-hand with external designers whose personality and creative traits match the individual projects. This often produces some unexpected solutions and a new, refreshingly different vision of future scenarios. In 2011 this approach led to the development of two extraordinary, visionary concepts: Fireplace and Fresh Connect. The latter is linked to the “connectivity” stream linked to the perfect preservation of food quality parameters from shop to fridge through the use of “intelligent” transport packaging, able – among other things – to preserve the food freshness at optimum temperature. The “Fireplace” concept reflects the lifestyle trend that sees the kitchen as the center of the home social network, using light and the most advanced induction technology to recreate ancient yet trendy atmospheres and emotional bonding.
  • 19. 19 | P a g e In the recent past Whirlpool developed important Research & Design projects, progressively expanding the focus from products (Macrowave) to process (project F), to the domestic environment (In.Kitchen)¸ to a study of consumer needs (In.home), to culminate in the ground breaking concept of the integration of appliances (Greenkitchen) for unprecedented savings (up to 70%) on energy and water. The Greenkitchen project (first announced in 2008) consists in an integrated kitchen eco-system able to generate savings of up to 70% in electricity and water. The savings obtained from the design and manufacturing of individual appliances can be further leveraged by combining them in a synergetic way within an integrated kitchen-system specially created to save water, heat and energy. This exclusive Whirlpool project represents an innovative way to take advantage of the possible interactions between the single elements of a kitchen and stands at the heart of the company’s strategy to develop a Green Kitchen with high energy efficiency and a low impact on the environment. Today, a working model of Greenkitchen 2.0 (Eurocucina 2012) is the evidence that concepts can translate into real life products for real consumer benefits. The projects were all received with enthusiasm for the strength of the innovation they showed and their visionary, thought provoking perspective. Macrowave was displayed at the Louvre museum in Paris and at Milan’s Triennale. Project F won several prestigious awards, such as the International Design Magazine Award (2003). In.kitchen won the Red Dot Communication Award (2004) and the American Design Award (2005). Greenkitchen 2.0 won the Bauknecht brand in Germany won the ‘Lifestyle’ category of the Clean Tech Media Award 2011, one of the most important environmental awards in Germany. How research is organized Whirlpool conducts continuous and intense research activities to guide design projects and to create new products that are ever more in tune with the consumers’ lifestyle. To this end the company carries out an average of one consumer survey per week throughout the year across Europe. On top of monitoring lifestyle and trends, Whirlpool also collaborates with prestigious European institutions to conduct studies on consumer behaviour. The results of these surveys complete the field research done by Whirlpool EMEA’s User experience Lab based on scientific principles of anthropology, cognitive psychology and ergonomics. The aim is to understand how people live and behave in the intimacy of their homes, how they move about, how they organize their domestic activities, and even what they feel and think when performing the simplest daily tasks. The Lab was created in 1994 in Cassinetta, Northern Italy, as part of the Advanced Marketing Group, and is now part of Global Consumer Design, the most appropriate environment to convert the results of anthropometrics and ethnographic research into new design projects and product innovation.
  • 20. 20 | P a g e For every new project specific and focused research is conducted. Amongst the most commonly used tools we find: in-home research, real in-field observation conducted across Europe in consumers’ homes; lab activities simulating product use, very useful to test new projects and make comparative studies with competitors’ products; focus groups, allowing the exploration of consumers’ feelings in some depth, bringing out needs that often consumers themselves are not consciously aware of. Before modifying an existing product, or introducing a new model, research results are shared with other departments, in particular with Marketing and Design, and with Production, to assess the feasibility and the real innovation value of the new concept. In 2011, Whirlpool Corporation invested nearly $580 Million in Research & Development activities. On the Design front, a total of 185 designers were actively involved in Whirlpool Corporation’s 4 design centers around the globe: in the US, Asia, Mexico and Europe. In Europe, Whirlpool’s design center is based in Cassinetta (Northern Italy). Its director, Alessandro Finetto, also has responsibility for Asia’s Design studio. How Whirlpool identifies and selects new opportunities and ideas Trends are key in exploring the consumer world. They help to identify opportunities which lead to innovative solutions and to profitable new goods, services and experiences. Here a distinction needs to be made: Trends - new directions, tendencies in lifestyle continuous in time Discontinuities - the passage from a state to another given by certain trends (eg. from fuel/ gasoline to diesel to hybrids)
  • 21. 21 | P a g e The Innovation team and Global Product Managers are responsible for exploring and identifying new global trends and opportunities in order to understand how they can impact on consumers’ lives and finally on products. There are several systems used by the Innovation Team and Global Product Managers for gathering new opportunities and ideas:  Workshops: groups are created that typically consist of people with different backgrounds and skills in order to expand everyone’s viewpoint. They start with a session on Ideation to find new Ideas, processes and opportunities. The ideation session is facilitated through the use of Ideation Techniques and Tools. There is then a moment of Idea Expansion and Opportunity Generation. This opportunity is further deepened and expanded and transferred into an Action Plan. All these activities are not only Product oriented but many times are related to specific functional processes/procedures.  Idea Central: a global on-line tool which brings together a network of around 25.000 Whirlpool employees from all over the world. If a team, in any part of the company, is looking for ideas on a particular topic, they can bring about an online ‘event’, sending a specific question to the entire online Whirlpool global population. For example, last year a European team was searching for new ideas to add to the accessories available for dishwashers. In seven days, they received 326 ideas from colleagues around the world. The team evaluated the ideas and selected the most interesting.  I-Mentors: by means of its internal training system, Whirlpool trains Innovation experts who are able to promote and support the application of innovation processes.  External collaboration: the Innovation Team also collaborates with various training bodies, including Universities and specialized Post-graduate Institutes.  Whirlpool Innovative ideas follow a very precise process. They pass through the I-pipe (Innovation Pipeline), a sort of ideas factory, where they are evaluated according to Whirlpool’s Innovation definition. At every step of this symbolic assembly line (four-phase process: business concepts, experiments, prototype and scale-up) the ideas are examined and enriched and the conditions are created to bring them into the marketplace (allocation of funds and people for their development). Once a decision to invest in the product has been made, the Innovation Pipeline monitors the speed of its development. Whirlpool’s definition is a key element of the strategy; our leaders developed a definition of innovation to create a common understanding and a set of standards by which to measure the success of the process. Ideas and projects must meet three criteria to be considered innovative: o Provide unique and compelling solutions valued by our customers and aligned to our brands o Creates a competitive advantage and/or is part of a sustainable migration path o Creates differentiated shareholder Value Unique requires the idea to be exclusive and limited. Compelling means the offering should be irresistible to the consumer. Being valued by our customers is essential. We believe our customers determine the value of a product or service. “Before we invest in an innovative project, it needs to provide more than a competitive advantage. We need to stay ahead of the competition. The innovation must be part of a sustainable migration path, a cadence of innovations to offer our customer something fresh that is always improving. And, we need
  • 22. 22 | P a g e every innovation to produce higher-than-average margins to provide differentiated shareholder value. Innovation is not limited solely to products but encompasses the entire business development cycle” says Mauro Piloni, global vice president, Advanced Development and Cross Product Categories, Whirlpool Corporation.
  • 23. 23 | P a g e SUSTAINABILITY IS WHIRLPOOL’S BUSINESS MODEL Whirlpool EMEA considers the protection of the environment not only as a priority in all its business decisions, but also and foremost as its business model. For over 40 years the company has engaged in protecting our planet’s resources “We have to create value for our customers, but none of us will have the right to do that without making the world a better place.” José Drummond, president, Whirlpool EMEA What truly distinguishes Whirlpool Corporation is its commitment to operating responsibly. For more than 100 years, Whirlpool has operated within the core principle that financial success is only sustainable when remaining true to its fundamental values of Integrity, Respect, Diversity and Inclusion, Teamwork and a Spirit of Winning. This is demonstrated by the company’s long-standing commitment to the environment and to the communities in which it operates. This principle will continue guiding Whirlpool Corporation throughout its second century. All over the world Whirlpool operates honouring these ethical values. Defending and protecting natural resources is considered to be one the most important responsibilities to promote sustainable development and combine business, progress and quality of life. Our goal as an industry leader is to develop high-performance appliances that allow homeowners to use the earth’s resources more efficiently. We continually strive to manage the environmental effects of our business, not only by creating new and innovative products that consume less energy and water, but also by improving our processes to reduce waste, recycle responsibly and run cleaner than ever before. Globally, we are embedding a life-cycle approach to appliance design – Design for Environment – that assesses the environmental impacts of every stage of a product’s production, use and disposal. For over 40 years Whirlpool has progressed on this path. In 1970 the company set up the “Corporate Office for Environmental control” with the precise responsibility to monitor and control the impact on the environment. Whirlpool Corporation was the first appliance company to announce greenhouse gas (GHG) emissions goals, during the Kyoto conference, in 2003. By 2008, it reduced its global direct and indirect GHG emissions to 3 percent below 1998 levels, while increasing production. Whirlpool is now on target to reduce them to 6.6 percent below 2003 levels by 2012. In all its activities, Whirlpool respects OHSAS 18001 parameters (Occupational Health and Safety Assessment Series), a safety standard developed internationally by the most severe certifying bodies. It integrates ISO 9001 and ISO 14001 norms to ensure the highest quality levels and maximum respect of the environment.
  • 24. 24 | P a g e “Our industry plays an important role in moving from destroying air and climate to reclaiming and improving it. We have to make that choice to play a role of intervention in greenhouse gas emissions and climate change” says José Drummond, president of Whirlpool EMEA and executive vice president, Whirlpool International. THE TRACK RECORD Whirlpool cares about the environmental impact of its products throughout their lifecycle, from design to production, to manufacturing, to their use by the consumers and final disposal. Energy consumption Whirlpool reduced the emissions of greenhouse gases by over 10 million tons, stopping the production of refrigerators using CFCs in its factories around the world. Over the years efforts were particularly focused on reducing the consumption of water and energy during the domestic use of the appliances, since it is in this phase of a product’s lifecycle that the most CO2 is generated and the most significant impact on the environment is produced (90%). Whirlpool making improvements in the energy efficiency of our products by just 1 percent is the equivalent of an approximate 150-percent improvement in our manufacturing facility-related emissions.
  • 25. 25 | P a g e In the last 30 years, the industry has succeeded in reducing energy waste in the home by over 70%. Over the last 8 years, it has dropped 35%. Today, dishwashers use one-sixth of the water that washing them by hand requires. And Whirlpool continues to make them even more resource-efficient, while also improving cleaning power and performance. For example, the Bauknecht brand EcoStyle built-in dishwasher reduces energy and water consumption by up to 50 percent. Whirlpool also is reducing the amount of energy consumed when preparing a hot-cooked meal for family or friends. For example, Jenn-Air, KitchenAid and Whirlpool brand induction cooktops rely on electromagnets to heat iron or steel cookware directly. They are more energy efficient than gas or electric cooktops because they cook food faster -- boiling water in 90 seconds -- and lose less heat in the process. “Regardless of any future innovations we create, enormous savings can be made just by deploying the latest technology that already exists” Drummond commented, “If everyone in North America and Europe were to upgrade now to best-in-class appliances, the savings in terms of energy would amount to 40 thousand GigaWatts, enough to power all the households in a country like Italy for an entire year.” In 2011 and 2012 Whirlpool partnered with the League of Green Embassies to retrofit participating US embassies in Europe - among which the ones in Belgium, Switzerland, Spain and Italy – with the latest, most efficient appliances. The initiative is part of a project supported by the US Government to reflect the commitment of the league’s members to reduce the greenhouse emissions of their Embassies and
  • 26. 26 | P a g e related properties in order to combat climate change and reduce operating costs through energy efficiency. Embassies are a powerful force for introducing innovative solutions, influencing individuals and institutions in host countries, and play an important role in mobilizing public opinion and action Smart energy Whirlpool believes that the smart grid and smart appliances are the next big opportunity for consumer energy savings, and continues to make significant strides in the development of smart grid-enabled appliances. Smart appliances, connected to a smart electrical grid, are able to send and receive signals to and from the utility, automatically modify energy consumption, helping consumers to save money on their home electric bills and reduce carbon emissions. Smart grid technology provides a significant opportunity to make renewable energy sources such as wind and solar more usable. Whirlpool has begun testing smart appliances and has committed to make all of its electronically-controlled appliances Smart Grid-compatible by the end of 2015, but expects widespread rollout is dependent on the appliance industry standardizing communication protocols as well as utility companies creating incentives for consumers including more widespread time-of-use pricing. Beyond single appliance efficiency Whirlpool also developed the innovative Green Kitchen Project2 , an integrated eco-kitchen that saves water and reduces energy consumption by 70%. The project’s concept is that appliances are not considered as separate functions, but as part of an integrated system able to transform waste in actual resources. For a typical family of four this could result in yearly savings of over 450 Euro. ECO-DESIGN Sustainability is an integral part of the development of any new product. Since 1998 Whirlpool has applied the principles of eco-design in the development of appliances that can be easily disassembled at the end of their lifecyle, and be transformed into new objects. According to eco-design principles, products are developed taking into account the impact on the environment throughout their entire lifecylce. The raw materials employed in their manufacturing are carefully selected, water and energy consumption, recyclability and ease of disassembly are also important factors that are considered. 2 Further information and details available upon request.
  • 27. 27 | P a g e Currently, more than 80 percent of the materials used in Whirlpool Corporation-produced products can be recycled. In some cases it goes even further, such as that of two innovative products, a washing machine and a dryer that are both 95% recyclable thanks to the use of entirely re-usable materials. WEEE Directive in Europe More than 10 years ago, Whirlpool collaborated with the European Authorities to draft the Waste Electrical and Electronic Equipment (WEEE) Directive, which requires appliance recycling according to European requirements. At that time, Whirlpool products already widely met the 2008 recycling and recovery targets required by the WEEE Directive. The WEEE law is currently under revision to increase the recycling percentage to 80 percent. As previously said, Whirlpool products already meet this target. Whirlpool EMEA actively co-operates with CECED (European Committee of Domestic Equipment Manufactures) and with ANIE (Associazione Nazionale Industrie Elettriche) in Italy. It plays an important role in helping define – in accordance with the ministries of Industry and the Environment – a programme for the disposal and the recycling of major domestic appliances and promoting more energy-efficient products. In Italy Whirlpool EMEA is a leading member of ECODOM, the consortium, made up of top industry players, for the recycling of WEE. Paolo Zocco, Whirlpool EMEA is the current president of ECODOM. Factories – Whirlpool’s environmental scorecard Greenhouse Gas (GHG) Emission Intensity Whirlpool is on track to meet current target, set in 2007, of a 6.6 percent reduction by 2012. In both targets whirlpool assumed responsibility not only for direct and indirect emissions but also for the much larger emissions associated with the use of its products in consumers’ homes. Energy Intensity In 2010, Whirlpool Corporation’s manufacturing facilities used more than 200 megajoules of energy per major appliance produced. Overall, energy intensity related to its manufacturing facilities has decreased by nearly 6 percent since 2006. In early 2010, Whirlpool Corporation joined the U.S. EPA’s Save Energy Now LEADE initiative to reduce energy intensity in its U.S. manufacturing facilities by 25 percent or more by 2015.
  • 28. 28 | P a g e Water Intensity In 2010, Whirlpool Corporation’s manufacturing facilities used nearly 0.2 cubic meters of water per major appliance produced. Overall, water intensity related to its manufacturing facilities has decreased by nearly 17 percent since 2006. Waste Intensity In 2010, Whirlpool Corporation’s manufacturing facilities generated nearly 1 kilogram of waste per major appliance produced. Approximately 90 percent of the waste was recycled. Overall, the amount of waste generated per major appliance increased by approximately 12 percent, mainly due to increases in production by our compressor subsidiary and the retirement of obsolete manufacturing equipment. At the same time, non-recycled waste (e.g., landfill, incineration) per major appliance produced has decreased by 3 percent since 2006. Responsible production Whirlpool is part of the Environmental Protection Agency’s programme for the reduction of toxic emissions. In the past 10 years the release of toxic chemicals in the production sites has decreased by 99%. In Europe, all the factories have adopted a depuration system for industrial wastes that helps reducing the impact on the environment and the production of toxic substances. Some of Whirlpool’s most environmentally-conscious production sites are located in developing countries such as China, Brazil, and India, where they far exceed the standards required by the local legislation. Whirlpool’s Beijing plant, for instance, uses only natural gas and recycles 40% of the water used in the industrial process. In Italy, the Cassinetta factory is self-generating energy by using the steam produced during the industrial process. In Cassinetta, Whirlpool also developed a pilot project to reduce the release of toxic chemicals during the painting process of its products. The new system involves substituting the traditional phospatation process with an innovative nanoceramic procedure that eliminates phosphates and metals from waste water. It also helps reducing energy consumption for the process happens at ambient temperature. Whirlpool Latin America also uses a solution made from terpeno, an organic and biodegradable substance found in citrus fruit peels, to clean steel pieces that form the structure of ranges. Its use has enabled Whirlpool to reduce energy consumption by 20% during the cleaning process, water consumption used in degreasing of tanks by 76% and water used in rinse tanks by 92%. Moreover, the implementation of a standardised Whirlpool Production System, based on Lean manufacturing principles, makes for an efficient approach that helps reducing waste of resources, in particular for what concerns scrap materials.
  • 29. 29 | P a g e Logistics Whirlpool is committed to using low-environmental-impact packaging. In the past few years the development of innovative packaging materials helped save several thousand tons of waste. AWARDS Since 1992 Whirlpool received over 100 awards around the world in recognition of its commitment in the field of sustainability and social responsibility, and for the extraordinary performances of its appliances. The following are amongst the most recent ones: 2011  With GREENKITCHEN 2.0, the Bauknecht brand in Germany won the ‘Lifestyle’ category of the Clean Tech Media Award 2011, one of the most important environmental awards in Germany.  The Bauknecht brand in Germany scooped the “LifeCare – Better Living” special prize for Responsible Company for the Greenkitchen 2.0 project. This highly coveted prize covers the categories ‘Protection of Resources’ and ‘Sustainability’, and was awarded in recognition of Bauknecht’s ongoing efforts to help protect the environments.  Whirlpool Corporation was awarded the 2011 ENERGY STAR® Sustained Excellence award by the U.S. Environmental Protection Agency (EPA). The award recognizes the company's leadership in offering consumers energy and water efficiency through its leading home appliance brands. Whirlpool was the only appliance manufacturer to receive the Sustained Excellence award, the highest possible ENERGY STAR award. This is the company's 12th top ENERGY STAR award and sixth consecutive Sustained Excellence win. Whirlpool has been honored with 23 ENERGY STAR awards overall, more than any other appliance manufacturer.  Whirlpool Corporation placed No. 85 in Corporate Responsibility Magazine's 100 Best Corporate Citizens list, which is regarded as the top corporate responsibility ranking based on publicly available information. This is the ninth time the company has been named to the list in the past 12 years. Inclusion on the 100 Best Corporate Citizens list reflects efforts to enhance the company’s level of publicly available sustainability reporting and is based on input from more than 100 employees around the globe. 2010  For the fourth year, Bauknecht Germany won awards in the ‘LifeCare – Better Living’ initiative. This year, the brand won the ‘Kitchen Innovation Prize 2010” in for the Kult oven and the Komfort design range, which were awarded for their qualities in the four categories Ease of Use, Innovation, Product Benefits and Design.
  • 30. 30 | P a g e 2009  In December 2009 Whirlpool Europe came out a clear winner in the most prestigious category “Electrical and electronic products (Hi-Tech)” of the Ecohitech award, the first and most important Italian prize in the field of sustainability and energy efficiency, for its Green Generation product range.  For the fifth year in a row, Whirlpool Corporation was named to the 2008/2009 Dow Jones Sustainability Index (DJSI), an international stock portfolio that evaluates corporate performance using economic, environmental, and social criteria.  For the third year running, Bauknecht Germany won awards in the “LifeCare – Better Living” initiative. In addition to three product awards, Bauknecht also scooped the special “Responsible Company” award for its design concept “GreenKitchen.” The project received the title, which is in its inaugural year, in the categories “Conservation of resources” and “Sustainability.” The products awarded were: the side-by-side fridge, the KOSMOS built-in oven and the Deep Silent hood.  Whirlpool Corporation was recognized with the 2009 ENERGY STAR Sustained Excellence award by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). The award recognizes the company's leadership in offering consumers appliance energy and water efficiency through its portfolio of brands. This is the company's 10th ENERGY STAR award and fourth consecutive Sustained Excellence win.  Whirlpool Corporation was named to the prestigious Chief Responsibility Officer magazine’s “100 Best Corporate Citizens” list. This is the eighth time Whirlpool, which ranked 51st this year, has been named to the list. 2008  Whirlpool Corporation’s GREENKITCHEN design concept received a Gold Design Award from the Spark International Design Competition.  For the fourth consecutive year Whirlpool Corporation was named to the 2008/2009 Dow Jones Sustainability Index (DJSI), an international stock portfolio that evaluates corporate performance using economic, environmental, and social criteria  Whirlpool Gold Series ranges were named as "smart green choices” by Green Builder magazine.
  • 31. 31 | P a g e MAINTAINING A BALANCED, COMPETITIVE PRODUCTION FOOTPRINT WHIRLPOOL’S EUROPEAN FACTORIES A long term strategy to build value for consumers, trade partners and investors A COMPETITIVE CHALLENGE Best Cost, Quality and Delivery Systems Whirlpool Corporation has built a dynamic organization that can identify next-generation process technologies and implement them around the world, ensuring common ways of manufacturing its products in every one of our factories. In its second century of opportunity, Whirlpool will continue setting the standard of bringing consumer- relevant, high-quality products to the marketplace. And it has transformed its organization to be more flexible within the ever-changing economic environment. This is Whirlpool’s foundation of success. Leveraging the global scale At Whirlpool Corporation, when a new, global product platform is designed , it can quickly be launched it in every one of the factories in the same way, using the best of the company’s existing assets and optimizing its manufacturing capital. A refrigerator, for example, is made with exactly the same manufacturing sequence in North America, Europe, South America or Asia. The products Whirlpool produces are sold in nearly every country around the world, which is why it recognizes the importance of having regional flexibility to customize products to meet the needs of local consumers and their lifestyles. Whirlpool also has the agility to efficiently move inventory through its network and into homes. As Whirlpool thinks about its second century and what it will take to succeed, it will never lose sight of its commitment to deliver highly sought-after solutions that delight consumers.. By producing in the regions where its appliances are marketed, Whirlpool provides flexibility and a real knowledge of its consumers. That has been Whirlpool’s standard of success for more than 100 years, and it is its challenge and opportunity for the next century.
  • 32. 32 | P a g e Europe’s challenge The current global economic crisis brought about a series of deep, structural changes to the entire industry and across all markets in EMEA, characterized by strong raw materials inflation together with the constant erosion of retail prices and the continuing contraction of volumes. Whirlpool is addressing these urgent challenges with a number of decisive actions in order to maintain its balanced, competitive production footprint in the region. The efforts were particularly focused on the correct sizing of its production capacity and infrastructure, cost control and investing in innovative, high- margin products. Whirlpool EMEA is committed to continue investing in its European production network in order to further improve the efficiency and competitiveness of its factories, and support the long term vitality of its business. With 2011 annual sales revenue of nearly 3.3 billion Euros Whirlpool EMEA is one of the major industrial and commercial players in Europe. Owning 13 production plants, 12 located in Europe and one in South Africa. Whirlpool EMEA employs nearly 12,000 people and accounts for nearly 20% of the Corporation’s global sales revenue: In late 2011, Whirlpool EMEA announced its decision to reduce its workforce by nearly 1.000 positions, mainly, but not only, in its factories. Half of these redundancies are to occur in the Cassinetta/Comerio complex within the next two years, as part of the capacity reduction strategy. The initiative was carefully planned, in line with Whirlpool’s tradition of respect for people, and in collaboration with Unions. Over 80% of workers voted in favour of the agreement reached with Union Representatives at the end of 2011. On the other hand, Whirlpool EMEA announced plans to invest 42 Million Euro in the site in the coming years. Similarly, Whirlpool EMEA is discontinuing production in its German plant of Neunkirchen. Focus was put on people from the beginning, and a solution was found, involving a third-party company taking over the facility. No jobs were lost in the operation, and new ones are to be created soon. The production of washing machines is now being transferred to Whirlpool EMEA’s plants in Wroclaw, Poland, to consolidate the company’s industrial footprint and make the most of scale efficiencies. WHIRLPOOL PLANTS IN EMEA ITALY TRENTO – Northern Italy – over 500 employed – Refrigeration CASSINETTA – Northern Italy – around 2,000 employed - two factories – refrigeration and cooking – on top of EMEA’s Global Consumer Design Studio and important R&D facilities with regional and global responsibility, SIENA – Central Italy – around 550 employed – Chest freezers NAPLES - Southern Italy – nearly 600 employed – Washing machines GERMANY SCHORNDORF – over 450 employed – washing machines
  • 33. 33 | P a g e FRANCE AMIENS – around 350 employed – Dryers SWEDEN NORRKOEPING – nearly 500 employed – Microwave ovens POLAND WROCLAW – around 2,200 employed – 3 factories – refrigeration; dishwashing; cooking SLOVAKIA POPRAD - around 900 employed – washing machines SOUTH AFRICA ISITHEBE – around 850 employed - refrigerators Whirlpool EMEA’s European Operations Center is located in Comerio, Northern Italy, and employs over 500 people. THE FUTURE To pursue its long-term strategy, Whirlpool EMEA is planning to continue investing in innovation at all levels, from plants, production processes, technology, to specific product competencies. Whirlpool EMEA’s objective is to increase customer satisfaction, reduce costs and improve productivity. In the long run, this constant quest for excellence will deliver benefits both for the company and value for consumers. An important part of this plan is the introduction of the Whirlpool Production System (WPS) in all European factories. This system is based on lean manufacturing principles, first originated in the automotive industry, applied to Whirlpool’s own network of production facilities and supply-chain elements. At Whirlpool, employee development is a strategic imperative. Whirlpool knows that involvement and awareness on the part of its factory employees will play a key role in its success, especially in troubled times when difficult decisions have to be taken. Therefore, Whirlpool EMEA intends to continue to invest in training and development to motivate the teams working in the various plants, and to provide them with tools and know-how. Only with everyone’s collaboration and determination will it be possible to continue to win the competitiveness challenge. In the near future, Whirlpool will continue to invest in Europe, carefully assessing the best opportunities for competitive improvements on a case-by-case basis. It will continue to win the trust of its shareholders, increasing profits and growing stronger in the market.
  • 34. 34 | P a g e “THE LEADERSHIP FACTORY” “Tough times don’t last, tough people, and tough companies, do” “The passion and professionalism of Whirlpool’s people lie at the heart of everything we achieve. Our people need to be accountable business leaders who we can count on to follow through, passionate about finding solutions for our customers, smart and innovative, capable of working together towards a common goal. Women and men of different nationalities, cultures, backgrounds and sensitivities who act with integrity and respect. People who embody our driving force – The Spirit of Winning!” José Drummond, president, Whirlpool Europe Whirlpool Corporation is the World’s undisputed n.1 manufacturer of domestic appliances, with a turnover of over $ 18.7 Billion and 70.000 employees. Every second, somewhere around the planet, someone buys a Whirlpool branded product. Whirlpool appliances can be found in 200 million homes in nearly every country in the World. Whirlpool’s leadership in innovation and design is widely acknowledged, and so is its pioneering spirit in the field of sustainability. Its major brands, Whirlpool, Bauknecht, KitchenAid, Brastemp, are synonymous with success, quality, and customer loyalty. Yet there is one more “product” Whirlpool is proud of consistently delivering over the years. One that does not often get into the limelight, one that does not get launched on any market, but one that is fundamental to Whirlpool’s continuing success: leaders. In Europe, Whirlpool is capable of offering international opportunities and challenges, with a flexible structure for career advancement and great opportunities to experience different roles in the organization. Every element in the process of this “leadership factory”, from finding and attracting talent, to on-boarding and career design and management, is aimed at producing highly skilled, motivated “tough” individuals who live and breathe the Whirlpool values of diversity, integrity, respect, team work, and spirit of winning. Such leaders drive change and business strategy, they inspire their teams and support them, and most of all they are winners in the marketplace. “People are not our greatest asset” says Adriano Mureddu, Vice President, Human Resources, Whirlpool Europe, “the RIGHT people in the RIGHT jobs are”. To prove this point he underlines the fact that “top executives in the company, starting from the president, spend an estimated 25% of their time focusing on “talent”: recruiting; interviewing; assessing future talent; identifying needs; learning & development; performance feedback; coaching; career discussion; career design & architecture; setting of targets. No other single activity – apart from “figures” – takes up so much “quality time”. Every one of the hundreds of individuals who join Whirlpool in professional and managerial positions every year around Europe gets the same level of attention.”
  • 35. 35 | P a g e One of the tangible and visible results of such an approach is the “internal fill rate” for senior manager or director positions. In Whirlpool Europe, the ratio nears 90%, with a “regrettable attrition” rate below 3%. In other words, top positions are filled mostly through internal promotions, as opposed to external hires, with a remarkably low percentage of managers spontaneously leaving the company. WHIRLPOOL’S LEADERSHIP MODEL Whirlpool’s Leadership Model is based on a clear definition of what leadership really means for the company: “Leadership means inspiring and enabling others, using personal traits and actions, to achieve extraordinary results. Leadership is the catalyst for positive change.” While everyone at Whirlpool is a leader in their professional capacity, the Leadership Model describes the exceptional responsibility of professionals who lead others, through 10 essential requirements referring to WHO they are – i.e. their personality – HOW they act – i.e. their actions – and WHAT they do – i.e. their impact: LEADERSHIP TRAITS 1. CHARACTER & ENDURING VALUES Practices and remains committed to Whirlpool’s set of enduring values and beliefs: Integrity, Respect, Teamwork, Diversity and Inclusion, and Spirit of Winning. Leaders are role models for Whirlpool values. 2. CONFIDENCE Demonstrates self-confidence and decisiveness that is sharply distinguished from arrogance or egotism. Teaches organizations to develop the confidence that leads to responsible risk-taking and ability to win. 3. THOUGHT LEADERSHIP Consistently challenges the status quo, orthodoxies and is open to new points of view. Improves thinking and decision-making. Always looking for the next idea to deliver break-through performance.
  • 36. 36 | P a g e LEADERSHIP ACTIONS 4. VISION & STRATEGY Passionately creates a vision for their business, function or department. Helps organizations see beyond what is known today and enables more accomplishments than they ever thought possible. Creates strategies that align and move the organization toward the accomplishment of the vision. 5. BRAND & CUSTOMER CHAMPION Puts the customer at the center of every process and activity valued by the customer. Drives growth through innovation and the effective and efficient use of resources. Keeps current on consumer trends and trade practices. 6. MANAGEMENT SKILLS Demonstrates effective management skills in order to drive results through others. Demonstrates good supervisory skills that are the foundation of any great leader. Keeps a pulse on and knows their people and organization. 7. ATTRACTING, DEVELOPING & ENGAGING TALENT Attracts, develops, engages and retains top leadership talent throughout the company. Develops the next generation of leaders better than themselves. Focuses on his/her own developmental needs. Consistently exports talent without diluting the pipeline. 8. COMMUNICATIONS Communicates clearly, frequently and consistently; is candid with all constituents. Creates an environment that encourages and expects dialogue and debate. LEADERSHIP IMPACT 9. STRATEGY EXECUTION Creates and drives a set of accountabilities and sustainable accomplishments that move the strategy from concept to action to results with urgency. Succeeds in leading significant major functional, regional and enterprise-wide initiatives. 10. VALUE CREATION THROUGH EXTRAORDINARY RESULTS Creates value for customers and shareholders and employees with significant business impact. Consistently guides and leads the organization to deliver breakthrough results.
  • 37. 37 | P a g e “Titles are granted, leadership is earned” Jeff Fettig, chairman, Whirlpool corporation “The culture of diversity” Diversity with inclusion is one of Whirlpool’s five fundamental values that constitute the essence of its identity, together with Respect, Integrity, Spirit of Winning and Team work. Whirlpool values are strong points of reference for employees in their daily work. The strength of these principles is that they can help every individual to reach a higher level of performance, regardless of the current economic environment or business cycle.  Respect: Great results can be achieved through relationships built on trust, encouraging diversity and making the most of every individual’s potential and contribution. Work is only one of the elements of a fulfilling and rewarding life;  Integrity: working in a correct, responsible way is important. There is no right way of doing the wrong thing. Maintaining the highest possible standards of personal, professional and legal conduct, whilst treating the others with the utmost respect, is of fundamental importance.;  Teamwork: working together brings pride and frees up the potential of every individual. Through collaboration and the confrontation of ideas great results can be achieved.  Spirit of winning: The awareness of being a leader generates pride and motivation to face the new challenges of the market. Whirlpool’s ambition is to be recognised, appreciated and respected as one of the world’s best companies to work for.  Diversity and Inclusion: Diversity creates value. A multiplicity of diverse points of view is the soul of innovation and the basis for Whirlpool’s success in Europe. A culture that can embrace and value Diversity and Inclusion motivates every individual to excel, stimulating passion and the free expression of ideas.
  • 38. 38 | P a g e THE STRENGTH OF DIVERSITY The Whirlpool culture is amongst the most advanced and diverse in the world. Diversity helps recognise and appreciate differences, whilst Inclusion offers every individual the possibility to contribute. These two principles are at the base of Whirlpool’s success. It is impossible to create innovative products and value for the shareholders without the ideas and the engagement of every individual. To create an environment that encourages diversity and offers equal opportunities to all employees, Whirlpool Corporation specifically created a Diversity Programme and several Diversity Networks across its global organization. The aim of the Diversity programme is to ensure the presence of various nationalities in leadership positions that require international experience, and at the same time increase the number of women employees, especially at managerial level. The Diversity Networks are linked to business, employee, and community projects and they address the needs of the groups they represent. At Whirlpool’s global headquarters in Benton Harbor, Michigan, there are seven such networks: The Women's Network (TWN), the Native American Network (NAN), the Whirlpool African American Network (WAAN), The Pride Network (PRIDE), the Whirlpool Asian Community (WAC), the Whirlpool Hispanic Network (WHN), the Young Professionals Network (YP). Recently, Whirlpool EMEA joined “Valore D” diversity network in Italy, where the seat of its European Operations is located. From anthropologists, to clinical psychologists, to world-class MBA graduates The multiplicity of academic and professional backgrounds, reflected in all business decisions, is an asset to the Whirlpool culture. Human Resources that reflect the diversity of the market better respond to the needs of consumers, and at the same time promote innovative, avant-garde strategies. This variety of cultural backgrounds is combined with nearly 26 different nationalities working at the European Operations Centre alone. 18 languages are spoken on the site, whilst the vast majority of employees commonly speak 3 languages fluently. This truly multinational, multicultural environment is probably one of the best contexts to launch an international career. In recent years Whirlpool Corporation consistently appeared in the rankings of independent, influential magazines, as in BusinessWeek's "Best Places to Launch a Career," or “Top 20 Companies for Leaders” by FORTUNE magazine, and the “25 Noteworthy Companies for Diversity” by DiversityInc magazine Inc. "The best investments that we make to profitably grow our business are in our people" says Jeff M. Fettig, CEO Whirlpool Corporation. Fettig was recently the recipient of the CEO Leadership Award from Diversity Best Practices magazine
  • 39. 39 | P a g e WHIRLPOOL SUPPORTS LOCAL COMMUNITIES WHIRLPOOL EMEA STRONGLY BELIEVES IN THE VALUE OF CSR THE VALUE OF RESPONSIBILITY Whirlpool profoundly believes in the principle of social responsibility. Everywhere around the world it engages in achieving commercial success respecting ethical values, and contributing to improve the lives of the people and the communities where it operates. Whirlpool Corporation’s founders felt a unique sense of responsibility to the community. They believed that improvement comes to society one community at a time. That belief has become part of the culture at Whirlpool Corporation, guiding employees as the company works to improve lives. As begins a new century of opportunity, Whirlpool continues striving to make life easier in communities around the globe. In terms of geographical scope, Whirlpool’s involvement in social responsibility is reflected at all levels of the entire organization:  Global projects & Partnerships, represented by the longstanding support to Habitat for Humanity  Regional projects, mainly the declination at regional level of Habitat for Humanity support, as the pan-European builds organized by Whirlpool EMEA  National and local activities  The most important Corporate Social Responsibility project, amongst the many initiatives promoted by Whirlpool in Europe, is the partnership with Habitat For Humanity, the international organisation aiming at eliminating poverty housing. Habitat For Humanity helps families in need build a decent home for a better future. The partnership with Habitat for Humanity in Europe started in 2004, when Whirlpool Corporation extended its long established relationship with the organisation in the US. Around the world, the campaign to support Habitat For Humanity was incredibly successful and helped improve the lives of thousands of families living in poverty. Since the beginning of the programme, Whirlpool Corporation supported Habitat for Humanity with an investment of nearly 80 million dollars, donating more than 140,000 products, and contributing to the build of over 6,000 new homes every year. (see table below) Habitat for Humanity® International (Whirlpool brand global partnership) $78+ million Direct program support since 1999 140,000+ Product donations since 1999 8,000 Employee volunteer hours since 1999 71,000 Families helped since 1999 40 Number of countries in which Whirlpool Corporation employees have helped provide affordable housing
  • 40. 40 | P a g e ENGAGEMENT IN EMEA Whirlpool EMEA supported the project with great passion, contributing to the build of over 1’000 homes in many countries, including Romania, Bulgaria, Poland, Slovakia, Macedonia, Northern Ireland, UK, Portugal, Russia, Armenia, Kyrgyzstan, and Tajikistan. The objective for is to constantly expand the number of builds in Europe. Every new home will receive a complete set of Whirlpool appliances (hob, refrigerator and washing machine). Whirlpool decided to defend the fundamental right to a decent home for it shares the fundamental values of respect, solidarity, diversity and team work with Habitat for Humanity. Through this partnership, Whirlpool reinforces its own vision of being in every home, everywhere with pride, passion and performance: The pride of being part of a community and offering everybody a decent home; The passion in doing the right thing, donating appliances that help other people’s domestic life; the performance of those people making a real difference in someone’s life.” “Helping those in our communities who deserve a better chance is an important testimony of Whirlpool values” says José Drummond, President, Whirlpool EMEA. “We strongly believe that the Social Responsibility initiatives that we organise today can produce important benefits in the future. Our customers will be satisfied to see our engagement in favour of the communities and of future generations, and this will bring Whirlpool brands even greater respect and trust.” Every house built with Habitat for Humanity is more than a simple home. It represents a concrete opportunity for a better and happier future. It represents the hope for security and better and decent living condition. It represents the dream of a life full of opportunities for one’s children. NOT ONLY HOUSES Whirlpool’s engagement in social responsibility goes beyond the global and European partnership with Habitat For Humanity, every Whirlpool site across the region is actively involved in supporting local charities and organizations. In Italy, Whirlpool EMEA’s European Operations Center has a longstanding partnership with Comitato Stefano Verri, an organization engaged in Child Leukemia research. It also has strong ties with Nonsolopane, dedicated to donating food to families in need in the Varese area, as well as with Varese per l’Oncologia, a support network for cancer patients in the region. This kind of local involvement can be seen throughout the EMEA region and in every site and facility. So In France, Whirlpool is involved with Habitat et Humanisme and Femmes en Or; Whirlpool’s South African production facility has implemented a ground-breaking health programme for workers affected by HIV; in Slovakia the company is a strong supporter of the Children’s Act of the Year; in Spain it worked with the mentally handicapped and supported rehab centers,; in Poland Whirlpool has a long history of supporting local orphanages, old peoples’ homes and hospitals; just to name a few. A STRONG COMMITMENT TO DOING THE RIGHT THING Whirlpool knows that this commitment is important to its consumers as well. In the US, Whirlpool Corporation has four brands with significant relationships with not-for-profit organizations that make a positive difference in people’s lives. Each brand has contributed millions of dollars to these organizations, and their consumers appreciate this dedication to community. In addition, the Whirlpool
  • 41. 41 | P a g e Foundation supports nonprofit organizations that focus on quality family life, cultural diversity and lifelong learning, utilizing new and innovative ways to make a lasting impact on society with an emphasis on the communities where Whirlpool Corporation operates. In addition to the work through Whirlpool Foundation and with its signature relationships, Whirlpool is very proud to participate in many community-changing partnerships worldwide. Whirlpool employees everywhere in the World feel so strongly about volunteering in the community and helping those in need that in 2011, Whirlpool Corporation instituted a formal volunteer program. This initiative, first introduced in the US, gives employees an official and user-friendly way to identify volunteer needs and track their volunteer hours. This program, launched in Whirlpool’s Michigan headquarters community in August 2011, and throughout the U.S. in November, saw nearly 5,000 volunteer hours logged by the end of the year. The program will launch globally in 2012. Although service to others has always been a part of who we are at Whirlpool Corporation, this program allows Whirlpool to formally recognize volunteerism as an integral part of the company's DNA. About Habitat for Humanity International Habitat for Humanity International is a Christian ministry dedicated to eliminating poverty housing, believing that all the people have the right to adequate shelter. Founded in 1976 by Millard Fuller, along with his wife Linda, Habitat for Humanity International and its affiliates in more than 3.000 communities in 92 nations have built and sold more than 200.000 homes to partner families with no-profit, zero- interest mortgages. Since its founding, Habitat for Humanity has become a global leader in addressing poverty housing by helping more than 750.000 people of all races, faiths and backgrounds to have a simple, decent place to live. Through volunteer labour and donations of money and materials, Habitat for Humanity builds and renovates homes with the help of homeowner families. For more information, visit www.habitat.org
  • 42. 42 | P a g e WHIRLPOOL FIRST IN QUALITY How Whirlpool is setting out to become the undisputed quality leader in the industry “Quality will play a huge and vital role in creating value at every level of our strategy” José Drummond, president, Whirlpool EMEA THE QUALITYFIRST INITIATIVE QualityFirst is a quality transformation initiative that Whirlpool EMEA launched in 2009 with the objective of making Whirlpool the undisputed Quality leader in the industry. “We believe that the QualityFirst initiative will fuel our growth for two reasons. In the medium to long term we will become recognized for the best quality in the industry. This will allow us to attract new customers and gain market share from our competitors. In the short term, QualityFirst will contribute to growth through a significant reduction in our warranty cost. For example, by 2014, we aim to reduce our overall warranty costs by 50 percent. This will enable us to fuel growth through investments in our brands and innovation with increased product quality” says Stefano Balzardi, vice president, Quality, Whirlpool EMEA. Three priorities in Quality: 1. Improve product quality: reduce the number of appliances that fail in use in the consumers’ homes through excellence in product development. 2. Speed up failures resolution: quickly detect and resolve quality issues happening in the market through an effective and rigorous cross-functional approach. 3. Optimize customer service: improve the way the company helps customers who experience quality issues through leaner field service operations. “Being better that our competitors in Failure Rate is just not enough: our customers expect Zero Defects and that’s where our target is” continues Balzardi. José Drummond, President, Whirlpool EMEA, and Executive Vice President, Whirlpool International, adds “on the Global Operating platform, achieving the best Cost, Quality and Delivery position will create a step-change reduction in Total Cost of Quality. We need to build unmatched customer loyalty in order to beat the competition and stay ahead. Customers want quality products they can trust and value, that are reliable and robust, from a company that keeps its quality promises. Nothing else will do – our customers and shareholders demand and deserve the highest level of quality, and we will become recognized as the undisputed leader in quality in the industry.”
  • 43. 43 | P a g e THE PATH TO QUALITY A Clear Quality Strategy. Precise objectives have been set In terms of SIR - Service Incidence Rate within the first year of life of an appliance. The “bar” was placed pretty high: reducing SIR by over 6 times, making Whirlpool about 6 times better than the nearest competitor. Since 2010, significant progress was made on this front, and SIR was reduced by over 45% in 2011 alone, and is steadily diminishing. The Cost of quality (the money the company has to pay for faulty appliances needing repair or replacing under warranty, the handling of the calls etc.) improved by €4Million over the same period. In 2011 Whirlpool EMEA won Whirlpool Corporation Chairman’s W Award for Best Customer Quality. A set of meaningful Key Performance Indicators (KPIs) has been put in place to monitor progress and correctly identify and assess opportunity areas. Systemic (proactive) initiatives have been deployed. They focus on prevention, such as the redesign of the Customer to Customer Process, one of Whirlpool’s fundamental innovation mechanisms that leverages customer insight to produce meaningful innovation. Corrective (reactive) initiatives have also been rolled out. They are designed to fix problems found or known during/after launch – this whole process has been named “Failure to Solution” Organizational Excellence & Culture, is the overarching element ensuring that decision-making at levels supports a true culture of quality. Focus on 2012 Objectives for 2012 include Call Reduction, improvement of Manufacturing Quality, a strengthened focus on Design Quality and significant progress in Service Excellence. In terms of calls reduction, 2011 already saw a decrease in the number of calls in the order of 16% year on year. The aim is to continue steadily on this path. To achieve this the strategy is to accelerate the Failure to Solution process; improve the early detection of defects to minimize impact on SIR; enhance Service capability for call avoidance; and make every effort to achieve “first time right to Market” status when launching new products. Manufacturing quality can have a decisive impact through the effective “matching” of customer perceived defects and factory process, but not only. Early detection in the factory can play an important role in “avoiding” service calls. Finally, “factory perfect” quality launch can help dramatically reduce problems in newly launched products. Design Quality certainly impacts overall quality. One of Whirlpool’s distinctive traits is that of “customer insight”, i.e. the ability to listen to the consumer, and gain precious knowledge about real needs, expressed or latent. Understanding the voice of the customer is paramount in gaining knowledge about real product performance.
  • 44. 44 | P a g e Winning in the consumers’ homes through Service Excellence is a driver for creating loyal customers for life. Attentive control of the EMEA service network, Call Centre Efficiency, and innovation in service data acquisition are tools to provide Whirlpool customers with the level of service they expect and deserve. “The most crucial factor is to realize that we have to look at quality as a result of a chain of activities involving all the functions in the company. We must keep a constant focus on identifying and strengthening the weakest link in order to make the chain stronger and stronger.” Stefano Balzardi, Vice President, Quality, Whirlpool EMEA