2007 Annual Report 2007

WHIRLPOOL MAYTAG KITCHENAID JENN-AIR AMANA BRASTEMP CONSUL BAUKNECHT GLADIATOR

WHIRLPOOL CORPORATION 2007 ANNUAL REPORT

WHIRLPOOL MAYTAG KITCHENAID JENN-AIR AMANA BRASTEMP CONSUL BAUKNECHT GLADIATOR .2 BOARD OF DIRECTORS /EXECUTIVE COMMITTEE P.124 SHAREHOLDERANDOTHER INFORMATION P.123 FIVE-YEAR SELECTEDFINANCIAL DATA P.122 REPORTS OFMANAGEMENT ANDINDEPENDENT REGISTERED CONSOLIDATED FINANCIAL STATEMENTSP.118 P.115 FINANCIAL SUMMARY P.108 OURRESULTS P.107 OURSENSEOFRESPONSIBILITY OURPEOPLE P.102 OURBRANDS OURCOMPANYP.96 FINANCIALHIGHLIGHTS P.10 CHAIRMAN’SLETTER P.8 P.7 P.1 Table ofContents PUBLIC ACCOUNTING FIRM

Design: SamataMason Principal Lifestyle Photography: Audra Melton CEO Portrait: Michael Abramson Printing: Lake County Press Cert no. SW-COC-1613 Telephone: 21025 Viale G. Borghi Europe Region Benton Harbor, MI 2000 North AmericaRegion World Headquarters and Whirlpool Corporation andGeneral Offices Telephone: N. M- N. Comerio (VA), Italy 63 39 269 - 0332 - 27 923 - - 49022 759 5000 - 111 - 2692 Telephone: SP Brazil CEP Telephone: Shanghai, PRC Pudong New Area Jingqiao Export Processing Zone 565 Asia Region 12 Av. dasNações Unidas, Latin AmericaRegion . 995 Jin GangRoad 04578 , 32° andar - 000 55 86 - - 11 21 201206 - São Paulo, - 3566 5133 - - 1000 1777 www.whirlpoolcorp.com data, isavailablefinancial at: Corporation, including Information aboutWhirlpool Internet Address Chairman’s Letter through ourbrands andinnovations. global consumer products company that creates value each andevery day. And we’re committed to beinganagile, that improve consumers’ lives —inandaround thehome— industry. We’re creating better, more innovative products worldwide network ofresources, which isunmatched inthe creating great products. We’re focused onleveraging our Our focus now, andinthefuture, isonmore thanjust deliver sustainable growth andshareholder value. of brands, strong innovation, andtheskillstalentto positioned to succeed. We have anoutstanding portfolio Today, WhirlpoolCorporation hasnever beenbetter cost-efficiency goalsoneyear aheadofplan. completed theMaytag integration —achieving ourinitial businesses, generated record levels ofinnovation and delivered outstanding performance inourinternational environment,economic we achieved record results. We Whirlpool Corporation. Inavery challengingglobal 2007 marked ayear ofsignificantprogress andresults at

CHAIRMAN’S LETTER P.1 CHAIRMAN’S LETTER P.2 results. Our2007 highlightswere asfollows: And we continued to grow anddeliver value-creating international cost increases. Yet, we saw record performance inour absorbed industry conditions inmore thantwo decades,andwe environment. We experienced themost challengingU.S. During 2007, we successfully managedadifficultoperating FISCAL 2007 RESULTS efficiencies andtimelydeliveries. consolidated facilities, astronger network, increased we are seeingthebenefitsoftheseactionstoday through deliver products to trade customers andconsumers. And worldwide. Oursupplychainhasbeentransformed to better the best-cost andbest-quality appliance manufacturer improve ourglobaloperating platform to ensure we are product qualityandmargin expansion. We continue to strategy —focusing oninnovation, cost productivity, We remain committed to ourbrand value creation STRATEGY EXECUTION dividends andshare repurchases. $502 millionwas returned to shareholders intheform of more than$400millioninefficiencies. The Maytag integration was completed, andwe realized to $2.1 billion. we were ableto reduce total debtlevels from $2.3billion Cash flow from operations reached $927 million,and increased 28percent to $8.10. Diluted earningsfrom continuing operations pershare Net salesincreased 7percent to arecord $19.4 billion. nearly $600millioninmaterial andoil-related businesses, ledby LatinAmericaandEurope. GLOBAL OPERATING PLATFORM Best Cost, Quality andDelivery Position BRAND PLATFORM TRADE PLATFORM Best Consumer Position Best Trade Position and we are ontarget to deliver exceptional long-term results. the industry andthemarketplace. Ourstrategy isworking, These efforts are designedto differentiate uswithinboth our globaloperating platform. productivity throughout theorganization, furtherleveraging customers. Goingforward, we willcontinue to drive cost resources —training, territory coverage andaccess to trade increasing thesize ofoursalesforce andproviding more product innovation globally. IntheUnited States, we are and marketing efforts. Andin2008,we willaccelerate new around theworld, we have focused onrevitalizing oursales As we continue to buildanddifferentiate eachofourbrands attract andretain loyal customers for life. that ourstrong andgrowing brands, fueledwithinnovation, building strong brands andaloyal consumer base. We know What trulydistinguishes Whirlpoolisourcommitment to relevant innovation andworld-class service. are committed to offering outstanding brands, consumer- retail trade customers, buildersanddistributors. Andwe We alignourproducts andservices withtheneedsofour adjacent businesses. international growth, innovation andexpansion into We are focused onexpanding ourbusiness through innovative consumer products andbrands around theworld. increasingly show thatwe are successfully growing our Our growth opportunitiesremain abundant,andourresults POSITIONED FOR GROWTH

CHAIRMAN’S LETTER P.3 CHAIRMAN’S LETTER P.4 opportunities. to beacompany thatisflexible andagilewithboundless In today’s globalmarketplace, we are positioningourselves growing market segment—premium appliances. growth opportunity, moving usinto ahigh-margin, fast- premium segment.Thisexpansion presents asignificant appliances to theEuropean marketplace to compete inthe In 2007, for example, we introduced product categories. And we continue to expand ourbrand portfolio across all consumer brand positioninmore established countries. During thelast 10years, we've developed avery strong have produced double-digitgrowth inrecent years. are extremely low. Many ofthelarger emerging markets where product penetration levels, across most categories, We are seeingtremendous growth inemerging markets International Growth (REVENUE -USDINMILLIONS) BUSINESS OVER LAST FOURYEARS GROWTH ININTERNATIONAL continued growth over time. and ourrobust pipelineof$4.5billionwillallow for innovations —well exceeding ourtarget for theyear — than $2.5billionofworldwide revenue from new brand commanding highermargins. In2007, we generated more it offers usasustainable competitive advantage while Innovation notonlyattracts consumers to ourbrands, Innovation 4,000 6,000 9,000 8,000 5,000 3,000 2,000 7,000 1,000 0 0420 062007 2006 2005 2004 Europe Latin America Asia Margin % Operating 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% $400 $300 $200 AND PRODUCTMIX IMPACT FROMINNOVATION SELLING VALUE PERUNIT GLOBAL AVERAGE $350 $250 $325 $225 $275 $375 00 20 40 607 06 05 04 03 02 01 00 increased ata compound rate of6% Since 2002, theaverage sellingvalue perunithas KitchenAid major For a product to be considered innovative within Whirlpool, it must: Deliver new and differentiated solutions to our consumers, Establish a sustainable competitive advantage, and Create superior shareholder value. The refrigeration category is one example of how we provide consumers with new and unique products that deliver significant value. Refrigerators own a valuable piece of real estate within the kitchen, and we’ve introduced new and better ways to utilize that space. The Whirlpool brand in Europe introduced a refrigerator with an espresso coffee maker integrated into the door. In North America, the Whirlpool brand launched the centralpark connection refrigerator featuring a docking port that supplies power to electronic devices, such as a digital photo frame. In Latin America, the Consul brand introduced a refrigerator featuring a dry-erase finish. A similar product was launched under the Amana brand in North America — just another instance of how we leverage our innovation globally.

Adjacent Businesses Our strength in the core major appliance business has created opportunities to expand into adjacent businesses,

such as water filtration products; kitchen cookware, cutlery CHAIRMAN’S LETTER P.5 and utensils; and garage storage systems. A recent example is our line of organizational accessories for the laundry room. We offer pedestals to raise the height of washing machines and dryers; laundry towers featuring oversized drawers, pull-out supply trays and retractable hanging rods; and work surfaces designed to go over the tops of washing machines and dryers, adding extra work space in the laundry room. The accessories are available in a variety of colors for every washer and dryer we sell. This portion of our business is a rapidly growing, value- creating and integral part of Whirlpool Corporation becoming a global consumer products company. CHAIRMAN’S LETTER P.6 future. We have Whirlpool Corporation isagreat company withanexciting A GREAT COMPANY, ANEXCITING FUTURE Chief Executive Officer Chairman oftheBoard & Jeff M.Fettig Sincerely, you, thistimenext year, ourcontinued accomplishments. succeed thanever before. Ilookforward to reporting to investors. WhirlpoolCorporation isbetter positionedto In closing,Iwould like to thankWhirlpoolemployees and and strengthen ourgloballeadershipteam. served uswell. Andwe willcontinue to expand, develop remain committed to executing thestrategy thathas toward faster-growing, higher-margin businesses. We several years, ourbrand portfolio willcontinue to shift we are focused onvalue-creating growth. Over thenext We remain optimistic abouttheopportunitiesahead,and responsible manner. Corporation; andhow we dobusiness inasocially through compelling opportunitiesuniqueto Whirlpool around theworld; how we attract andretain thebest talent and positionedto meetthespecificneedsofconsumers will seehow ourglobalportfolio ofbrands isdifferentiated leading inglobalmarket share. Inthepagesthatfollow, you the No. 1globalappliance brand, andwe are $19.4 $927 50.9% $18.1 $8.10 $884 $880 45.7% $794 41.2% $744 40.4% $14.3 $6.35 $6.19 $13.2 $5.91 $5.90 34.5% $12.2

03 04 05 06 07 03 04 05 06 07 03 04 05 06 07 03 04 05 06 07

REVENUE DILUTED EARNINGS CASH FLOW DEBT/TOTAL ($ in billions) PER SHARE FROM PROVIDED BY CAPITAL CONTINUING CONTINUING OPERATIONS OPERATING P.7 FINANCIAL HIGHLIGHTS ACTIVITIES ($ in millions)

($ in millions, except per share data) 2007 2006 % Change Net sales $ 19,408 $ 18,080 7.3% Earnings from continuing operations $ 647 $ 486 33.1% Per share on a diluted basis $ 8.10 $ 6.35 27.6% Stockholders’ equity $ 3,911 $ 3,283 19.1% Total assets $ 14,009 $ 13,759 1.8% Return on equity 18.1% 15.7% 15.3% Book value per share $ 48.96 $ 42.93 14.0% Dividends per share $ 1.72 $ 1.72 0.0% Share price High $ 118.00 $ 96.00 22.9% Low $ 72.10 $ 74.07 -2.7% Close $ 81.63 $ 83.02 -1.7% Shares outstanding at December 31 (in 000s) 75,835 78,484 -3.4% Number of employees 73,682 73,416 0.4% OUR COMPANY P.8 REGION AMERICA NORTH #1 GlobalAppliance Brand #1 GlobalShare “Power Brands” majorappliance ranking of top Three of and premium segments brandsLeading inmass market share # 1 bi-annual major appliance HFN 10 brands in magazine REGION AMERICA LATIN premium segment A leaderinthe Latin Americanmarkets position throughout all Rapidly growing Brazil andArgentina # 1 consumer positionin REGION EUROPE emerging markets Continued expansioninto brand segment Growth inthepremium # 1 brand position REGION ASIA emerging markets Continued expansioninto brands inChina A leaderamongWestern brand inIndia # 1 consumer-preferred

OUR COMPANY P.9 Whirlpool Corporation has great brand names that each holds a unique and differentiated position in the global marketplace.

The Whirlpool active balancer The Maytag demanding loyalist The KitchenAid home enthusiast The Jenn-Air proud gourmet The Amana practical style-seeker The Brastemp trendy cosmopolitan The Consul close-knit optimist OUR BRANDS P.10 OUR BRANDS The Bauknecht responsible balancer The Gladiator garage enthusiast

Whirlpool Corporation knows its brands, and each brand knows its consumers. Our Brands OUR BRANDS P.11 OUR BRANDS THE TAYLORS

THE TAYLORS P.14 demands. Despite a to-do listthatneverdemands. ends, Despiteato-do the No. life’sThe Taylor family isconstantlyonthegoandneedsallhelpitcangettomanage of DRIVEN TECH-SAVVY TIME-STARVED ACCOMPLISHED OPTIMISTIC BUSY They’re always lookingforappliances tohelpthemgetmore doneeveryday. together. Sharingamealwithfamilyand friendsisfarmore importantthanactually preparing it. 1 priority isfamily andspendingtime PRODUCTIVE CARING ORGANIZED INNOVATIVE

ECO-EFFICIENT WHIRLPOOL P.15 INTUITIVE

The Whirlpool brand promises innovative solutions that help the Taylor family get more done, faster and easier than ever before, resulting in a great sense of accomplishment at the end of each day.

WHIRLPOOL DUET STEAM WASHER AND DRYER WITH LAUNDRY 1-2-3 CUSTOM LAUNDRY OPTIONS

The Whirlpool Duet steam washer naturally steams away tough stains, from grass to grease, without pre-treating. The steam dryer removes odors and reduces wrinkles from clothing. And as more and more laundry rooms are relocating from the basement to higher-profile areas of the home, Whirlpool brand has responded with high-performance options and a new earthy color palette designed for style- conscious consumers. WHIRLPOOL P.17

WHIRLPOOL CENTRALPARK CONNECTED REFRIGERATOR

The centralpark connection unites appliances and electronics, allowing consumers to remove clutter from counters and refrigerator doors. The centralpark connection provides a docking port on the refrigerator that supplies power to electronic devices, which are manufactured and sold by third parties as accessories to the refrigerator. The first such accessory is a digital photo frame that displays thousands of photos on the refrigerator without using a single magnet. Photo frame functionality includes the ability to automatically receive pictures from a wireless device, camera phone or computer with optional service plan. Additional plug-in compatible devices, including a tablet PC, message center, and iPod® speaker system, are available through retailers and scheduled to launch throughout 2008. Finally, a cool new way to stay connected. WHIRLPOOL P.20 in washingmachines. remove residue odor-causing cleaner tablets. Thesetablets example isthe adjacent businesses. One opportunities toexpandinto business hascreated strength initscore appliance Whirlpool Corporation’s TO EXPAND OPPORTUNITIES with time with for doinglaundrywithsteam, saving scrubbing them getmore done. Whetherit'snew solutions lives through innovative products thathelp strives to helpfamilies managetheirever-busier Whirlpool In 2008, Whirlpool and energy withitseco-friendly lineup, chock-full ofinnovations. appliances thatisbeautifullymatched and dispensing, aswell asanentire suite ofkitchen mount refrigerator withexternal ice andwater brand alsoislaunchingaFrench doorbottom- colors andaccessories for thelaundryroom. The launches includeanexpanded lineofvibrant new major products inNorthAmericaalone. These Laundry 1-2-3 Whirlpool , theflagshipbrand ofthecompany, PowerScour is abrand families trust. affresh washer accessories, orsaving water brand isslated to launchnine dishwashers, organizing up to pouches andisable toprovide espresso maker usescoffee The by-side refrigerator. maker integrated intoaside- introduced anespresso coffee In Europe, MAKER ESPRESSO EUROPEAN 35 cups of coffee atatime. coffee cups of Whirlpool brand The WATER PURIFIER INDIA MARKETINTRODUCES category. introduced inIndia,markingtheregion’s intothewater entry immediate consumption of freshly purified water. freshly purified immediate consumptionof withnostoragereverse tank,enabling osmosiswaterpurifier Whirlpool PURAFRESH brand PURAFRESH is India’s andonlydirect-flow first water purifier was water purifier unloading laundry easier. help make loading and available heights, invarying Pedestals, thedryer. right outof a retractable rodtohangitems Somemodelsinclude easy reach. to store laundry supplieswithin towers includespaciousdrawers sort, treat andfold,laundry work surfaceprovides aplaceto The organize rooms. laundry with customoptionsto products provideconsumers Whirlpool ORGANIZE OPTIONS TO brand Laundry Laundry 1-2-3

WHIRLPOOL P.21 THE MILLERS

ACTIVE LOYAL PRACTICAL TRADITIONALISTS

THE MILLERS P.24 ACHIEVERS DEMANDING

The Miller family has high expectations for the brands they purchase and use. They usually gravitate to brands that are well-established and proven. The Millers are extremely loyal and will use a brand for as long as it continues to meet their expectations. They demand high-performance appliances and are willing to pay more for quality. DEPENDABLE HIGH-QUALITY RELIABLE

STRONG MAYTAG P.25 DURABLE

Maytag brand appliances offer a heritage of quality and performance on which the Millers can depend. Maytag brand products are exceptionally durable and feature commercial-grade components.

The washer anddryer are builtstrong to last long. heavy-duty shockabsorbers,andhighimpact-resistant windows, the tough stains. The dispense OxiClean Maytag Epic washing machinefeatures abuilt-indispenseroptionto automatically Epic ® stain-fighting additive into thepre-wash cycle to helpremove pair isavailable inanew arctic bluecolor. With asolidsteel frame, MAYTAG EPIC WASHER ANDDRYER Maytag Epic

MAYTAG P.27

MAYTAG LAUNDRY 1-2-3 ORGANIZATIONAL ACCESSORIES

Maytag Laundry 1-2-3 organizational accessories feature slide-out and protective work surface options. The laundry towers fit beside or between the washer and dryer and feature oversized storage drawers, a pull-out supply tray and a retractable steel hanging rod. MAYTAG P.29 MAYTAG P.30 in atop-loadconfiguration. system afront-loadlaundry of thorough, dependable clean basket —providingthe grade stainless steelwash system features acommercial- top-load washeranddryer large-capacity high-efficiency, The EFFICIENCY HIGH Maytag commercial-grade components are found in continues to thrive. Exceptionally durable, production andunrivaled performance Maytag dependability anddurability. Today, appliances have beensynonymous with For more thanacentury, Maytag Bravos brand appliances. brand’s unequaledtradition ofquality Maytag brand load steamdryer intheindustry. Bravos brand introduced the glassware forsoilandspotting. cleaning performanceon dishwashers deliver enhanced Maytag CLEANING ENHANCED In January of steam dryer, top- thefirst SteamClean 2008 , Maytag Maytag with the always beensynonymous dependability thathave qualityand positioning of is re-establishing the future, WhirlpoolCorporation plantedinthe other firmly planted inthepastand brand. With onefootsquarely in revitalizing the Repairman willplay akey role named. ThenewMaytag new Maytag Repairman was extensive nationalsearch,a In April of REPAIRMAN MAYTAG Maytag 2007 , afteran name. Maytag hoods andfreestanding ranges. microwaves, elegantrange machines, built-inovens and cooktops, built-incoffee of market. Thecollectionconsists was launched totheAustralian kitchen appliance collection During theyear, anew LAUNCH MARKET AUSTRALIAN Maytag commercial-grade strength. heavy-gauge steellidand The washerfeatures a console trimandkickplate. center-knob control andgold commemorative stylingwitha Maytag Centennial washer, thespecialedition thefirst anniversary of the In celebration of ANNIVERSARY 100 pair features 100 Maytag TH th

MAYTAG P.31 THE GRANGERS

OUTGOING PASSIONATE WARM GENEROUS THE GRANGERS P.34 FAMILY-ORIENTED

The Granger family loves to cook, especially with others. Outgoing and imaginative, they enjoy the process of cooking and want appliances that let them express their creativity. TIMELESS INTUITIVE QUALITY

CRAFTSMANSHIP P.35 KITCHENAID

The KitchenAid brand is for those who are passionate about cooking. KitchenAid brand products feature easy-to-use performance, timeless design and quality you can feel, making cooking effortless for the Granger family.

add to themixer’s versatility withnew tools andattachments. optional attachments.This feature hasenabled One secret to itsingeniousdesignisahubthataccommodates more thanadozen Introduced in1919, theiconic KITCHENAID KitchenAid stand mixer ismore populartoday thanever. STAND MIXER KitchenAid brand to continuously

KITCHENAID P.37

KITCHENAID ARCHITECT SERIES II

The KitchenAid Architect Series II is the latest generation of top-of-the-line appliances. Design elements include seamless surfaces for easier cleaning; easy- to-grip handles for better control and access; larger windows on oven doors for better visibility; warming drawers on select range models; and glass touch controls with blue digital display lighting across the entire line. Beveled edges provide for a smoother fit with cabinetry. KITCHENAID P.40 pantryware and cookbooks.pantryware bakeware, cutlery, sinkware, spoons, oven mitts, dish towels, cookware, measuringcups and in thekitchen, including anything acookmay need brand nowoffers almost consumer need, Inresponse tothis quality. thesame kitchen accessories of began askingforversatile major appliances, consumers KitchenAid their performance of Inspired bythequalityand EXPANDED OPPORTUNITY performance andqualityyou canfeel. products feature timeless design,easy-to-use homes more thanany otherbrand. All Professional chefschoose essential for thewell-equipped kitchen. KitchenAid to refrigerators, andwhisksto winecellars, countertop appliances to cookware, ranges of products designedfor cooks. From legacy oftheseicons to create acomplete line KitchenAid mixer in1919anditsfirst dishwasher in1949, Since theintroduction ofitslegendarystand countertop and brand offers virtuallyevery brand continues to builduponthe KitchenAid trash containers. microwave ovenware and food storage products, offerings, lookfor expand itslicensedproduct KitchenAid As thebrand continuesto KitchenAid for their KitchenAid In AND BEYOND 2008 rat fproductsoffered. breadth of launch, emphasizingthe KitchenAid.com issetto in Europe. and continueitsintroductions into theBrazilian market will introducemajorappliances In addition, aredesign of 2008 , KitchenAid brand OUTDOOR make outdoor entertaining ENTERTAINING easier and more enjoyable. The KitchenAid outdoor The new line includes such product suite offers high- additions as warming drawers, performance appliances for pull-out tank access on outdoor use. The collection freestanding grills, and features newstyling and added built-in trash and utility built-in options, all designed to drawers for cooking islands. P.41 KITCHENAID

EUROPEAN LAUNCH KitchenAid major appliances are now available in France, Italy and the United Kingdom. The appliances feature European styling coupled with leading-edge technology.

EXPANSION INTO NEW MARKETS KitchenAid brand continues The brand recently refreshed market through continued to see growth in outdoor its entire Architect Series II enhancements to its product appliances and expansion of its suite and expects to strengthen line, increased advertising appliances into new markets. its position in the premium and superior customer service. THE PARKERS

UNCOMPROMISING REFINED DETAIL-ORIENTED STRIVES FOR THE PARKERS P.44 THE PARKERS PERFECTION

The Parker family is realistic, practical-minded and goal-oriented. Whether setting an elegant table or creating a delicious dinner, the Parkers like to entertain and strive for perfection. Proud of their home, the Parkers want kitchen appliances that offer both style and performance. PRECISE PERFORMANCE DETAILED REFINED STYLISH P.45 JENN-AIR

Jenn-Air brand offers refined kitchen appliances that deliver beautiful results. Uncompromising in performance, style and attention to detail, Jenn-Air brand offers products that help the Parker family create gourmet dishes and host perfect dinner parties.

JENN-AIR OILED BRONZE SUITE

The Jenn-Air oiled bronze suite of appliances offers a warm, distinctive alternative to stainless steel. The oiled bronze collection is a Jenn-Air exclusive and includes gas and electric cooktops, wall ovens, warming drawers, refrigerators and dishwashers.

JENN-AIR ENTERTAINING ESSENTIALS

Jenn-Air brand offers a collection of small-scale appliances for the living room, media room and other rooms beyond the kitchen. The collection includes a wine cellar, beverage center, ice machine, undercounter refrigerator, warming and refrigerator drawers, and convenience oven. Jenn-Air brand offers refined kitchen appliances that deliver beautiful results. Like its consumers, TARGETED Jenn-Air products are uncompromising in performance, style and attention to detail. FOCUS Jenn-Air brand has the distinction of being The Jenn-Air brand will the “most preferred cooking brand,” based on an independent study. The Jenn-Air brand double its investment in print 2008 is usually purchased in suites. media in with a targeted focus on epicurean and JENN-AIR P.50 JENN-AIR MORElifestyle audiences. CHOICES Jenn-Air brand plans to add to refrigerator doors also will be the already successful oiled launched in 2008. Jenn-Air

bronze product line to offer the brand will continue to drive The power of performance.

The Pro-Style® Stainless suite by Jenn-Air. The majestic steel-clad design surrounds a performance like no other. Powerful controls with one purpose—to put you in control. That’s the cooking heritage of Jenn-Air. A reputation of true performance with the consumer even more choices. premium share growth luxury of design. Go to JennAir.com, or visit any of our exclusive showrooms. Additions include a hood, built- through enhanced in-store ®Registered Trademark/TM Trademark of Jenn-Air, U.S.A. ©2007 All rights reserved. in refrigerator and a built-in experiences, enhanced microwave oven. Induction premium service and cooktops and several styles of unmatched sales education. dishwasher even quieter. making analready quiet new silentsoundpackage, SteamClean optionhave a Dishwashers withthe lustrous shineonstemware. cycle toproduce aneven more enhancing anexistingwash soil andspotcleaningwhile dishwashers provideadvanced Jenn-Air STEAM CLEANING WITH ENHANCED SteamClean

JENN-AIR P.51 THE AARONS

THE AARONS P.54 designed togowith any décor. be simpleyet precise, practical they lookforappliances thatoffer features, are easytouse and They are energetic, usestyle toexpress themselves andembrace change. Sincethey like thingsto theAaronfamilyare practical style-seekers whoare optimisticabout their lives. Members of POSITIVE UNPRETENTIOUS YOUTHFUL HIP STYLISH FRESH STYLISH CONTEMPORARY AFFORDABLE CLEVER AMANA P.55 PRACTICAL

Amana brand appliances offer practical, clever features that provide the Aaron family with simple and contemporary designs at the right price. The Aarons can express themselves through their Amana appliances.

component protection andexceeds the2007 ENERGY STAR enabling consumers to drymore inasingleload.The washer features antimicrobial and water consumption. The Amana front-load laundrypairfeatures asuper-capacity 7.1 cubicfoot dryer, FRONT-LOAD LAUNDRY ® guidelines for energy

AMANA P.57 AMANA P.58 affordable, style-conscious appliance brand. revitalization, emerging asaninnovative, In 2008, combined withclever designcapabilities. The addressed within theappliance industry. consumers whootherwisehave notbeen style-seeker, bringingnicheproducts to environment andappliances. through styleintheirhome in expressing themselves incomes whoare interested consumers withdisposable consumer segments: thelargest emerging one of The SEGMENTS CONSUMER EMERGING The Amana Amana Amana Amana brand caters to brand offers astrong heritage brand isalignedwiththepractical will undergo asignificant ERASE DRAW WRITE innovations globally. is able toleverage its Whirlpool Corporation how brand, isanexampleof America underthe refrigerator, available inLatin spill-saver glass shelves. The temperature controland also offers single up-front easy cleanup. Therefrigerator to write, draw orerase with the door, enabling consumers on features adry-erase finish The Amana JOT refrigerator Consul 12 one consumers ownatleast Today, Amana 12 ecn fall percent of appliance. % BRAND EXPANSION CONTINUED that are pricedright. interested incoolinnovations consumers who are needs of lines tosupportthelifestyle continue toexpanditsproduct and affordable prices. designs, practical features Look forcontemporary entirely refreshed product line. provide consumers withan In affordable price. individuality at an a chancetoexpress their styling thatgive consumers simple aestheticsandtrendy clever features, a fresh mixof kitchen suitesshowcase The new STYLISH Amana 2008 , Amana Amana brand alsowill brand will stainless steel

AMANA P.59 THE BORGES

AUTHENTIC FUN CONNECTED DETERMINED

THE BORGES P.62 TRENDY COSMOPOLITAN

The Borges family is connected and curious. Their home is a place where family and friends gather for fun and laughter. While they love being at home, they also travel wherever they can to experience different cultures, food and sights. Their style reflects who they are — professional, cosmopolitan and unique. The Borges family wants their appliances to be an expression of themselves. EMPOWERING DARING AUTHENTIC STYLISH INNOVATIVE P.63 BRASTEMP

The Brastemp brand is empowering, stylish and innovative. A trendsetter in home appliance technology and design, Brastemp products are reliable and they inspire the Borges family to spend time doing the things they enjoy.

BRASTEMP CLUB REFRIGERATOR

The Brastemp Club refrigerator was designed for people who enjoy entertaining at home with friends and family. It offers an exclusive can dispenser in the door, a shelf to frost glasses, a pre-programmable compartment that allows consumers to cool drinks to desired temperatures and an alarm that sounds when the drinks are ready to serve. BRASTEMP P.65 BRASTEMP

BRASTEMP EGGO MINIWASHER

A new concept in compact and portable washing machines, Brastemp Eggo was created to take care of the most delicate fabrics and clothes, such as lingerie, swimwear and baby clothes. Its ozone cycle eliminates bacteria. A digital panel controls Brastemp Eggo, which can wash about two pounds of laundry at a time. BRASTEMP P.67 BRASTEMP BRASTEMP P.68 GROWTH CONTINUED brand’s valuesintoproducts. development translates the innovation andproduct continued investment in brand’s success. key componentinthe to do. Thispositioningisa them todothethingstheylike and individualitywhilefreeing style express theirsenseof products letconsumers While “B” standsfor “B Side” positioningcampaign. successfulpromote itsvery to to strengthen itsefforts The In Brazil, the demonstrates that its “BeAuthentic” positioning the A trendsetter intechnology anddesign, consideration, preference andloyalty. home appliance brand inconsumer awareness, appliance innovations withinBrazil. Beyond marketing efforts, Brastemp Brastemp brand continues Brastemp Brastemp brand leadsallmajorhome Brastemp , brand istheNo. 1 OVEN COMPLETE DIGITAL complete digitaloven. range inthemark The Brastemp Touch et offering a et offering is theonly BUTTON SIMPLE TOUCH OFA The ipetuho abutton. a simpletouchof freezer orasarefrigerator with between usingtheproductas a allows consumers tochoose Brastemp Flex freezer SURPASS SALES NEW PRODUCTINTRODUCTIONS EXPECTATIONS households inBrazil own a six newmodels. washing machineswith of brand willrejuvenate its line In multi-use drawer. a canrack, bottledividerand technology inrefrigeration — Its interioroffers modern used bythebrand inthe refrigerator isthesamedesign Brastemp Retro refrigerator wasagreat success. Brastemp Retro The h xeirdsg fthe The exteriordesignof Today, every outof five 2008 2007 , the anho the launch of Brastemp miniature miniature 1950 10 s. more resilient thana no otherwashingmachineis renowned research institute, And, according toIBOPE,a Brastemp washing machine. Brastemp .

BRASTEMP P.69 THE CARVALHOS

HAPPY CLOSE-KNIT OUTGOING EMBRACING THE CARVALHOS P.72 THE CARVALHOS CONFIDENT

The Carvalhos put family first, taking pleasure in the simple things in life. Warm and outgoing, they are a close-knit, traditional family with mom at the heart of everything. They want appliances that make life easier so they can spend more time with family and friends. GENEROUS EASY-TO-USE INCLUSIVE BEAUTIFUL CONSUL P.73 CONSUL TRUSTWORTHY

The Consul brand is part of everyday life. It offers products and services that are dependable, durable and make life a little easier for the Carvalho family.

CONSUL AQUARELA REFRIGERATOR

The Consul Aquarela refrigerator is covered in a special coating that allows consumers to draw and erase on doors and sides, emulating a dry-erase whiteboard. With Aquarela, members of the family can leave messages to each other, making the kitchen even more interactive. CONSUL P.75 CONSUL

CONSUL MARÉ WASHING MACHINE

The Consul Maré washing machine comes with an exclusive “easy level” feature that lets the consumer determine the correct amount of clothes, soap and water. The Consul brand is close and intimate with its consumers and is considered part of their homes and family histories. A leader in refrigerators, % washing machines and air conditioners, the brand understands its consumers’ values and behaviors and how to best translate their 53 needs into products and services that are More than 53 percent of all reliable, affordable and easy to use. Brazilian households own a

CONSUL P.78 CONSUL Consul appliance.

Consul Scents Ranges EXPANDING GROWTH THE BRAND IN NEW In 2008, Consulbrand will offer a new line of automatic CATEGORIES and semi-automatic washing Consul brand continues to machines. Its semi-automatic see growth in new categories

washing machines offer like acclimatizers, space P.79 CONSUL tremendous growth potential heaters, ceiling fans and and serve a largely untapped vacuum cleaners. consumer segment — lower- income families with some COMPETITIVE RANGE LINE disposable income. FOCUSED ON The Consul brand is refreshing its entire cooking product line HEALTH and expects to strengthen its AND WELLNESS leading position in the home The Consul air cooler is appliance category with the designed to improve consumers’ newScents ranges. Consul health and wellness in some of Scents ranges are competitively the driest regions of Brazil. It priced and, in response to features a water dispensing consumer feedback, feature capacity of nearly two gallons, extra-tall feet. The ranges are washable filter, timer and a durable and easy to clean. humidifier function. The Consul brand also launched a line of refrigerators featuring a filter that reduces the proliferation of bacteria and odors inside the product, creating a healthier environment for consumers. THE BECKERS

DYNAMIC POSITIVE QUALITY-MINDED CREATIVE THE BECKERS P.82 CONFIDENT

The Becker family has an energetic, future-oriented and positive approach to life. They enjoy life and being with family and friends. Health-conscious and socially responsible, the Beckers look for appliances that help them support the environment. RELIABLE PREMIUM ECO-FRIENDLY CARING VERSATILE P.83 BAUKNECHT

The Bauknecht brand makes life more comfortable for the Becker family. Featuring premium products that are reliable and make healthy living easy, the Bauknecht brand is committed to helping the Beckers conserve the earth’s natural resources every single day.

BAUKNECHT STEAM WASHING MACHINE

The Bauknecht Steam washing machine uses the natural power of steam to hygienically clean laundry even at low temperatures. It also freshens garments quickly and helps to gently remove tough stains from clothes. BAUKNECHT P.85 BAUKNECHT BAUKNECHT P.86 STORAGE SPACE EXTENDABLE can beaccessed easily. Thenew extendable storage spacethat refrigerator providesmodern, The built-in,double-drawer their family andtheenvironment around them. reliability andperformance, whilecaringfor have highexpectations whenitcomes to product friends andfamily. It focuses onconsumers whoenjoy life with of themost preferred brands inGermany. While soldthroughout Europe, for quality, reliability andpremium performance. German heritagedatingbackto 1919. Itstands Bauknecht is aregional brand withastrong Bauknecht ihlvlo energy efficiency. high level of appliances andprovidinga faster thannormalcooling temperatures times recover five ensuring thatpre-set Intelligence-sensor technology, cooling unitsfeature Dynamic brand consumers Bauknecht is one BUILT-IN PRODUCTS GROWTH IN Economics andTechnology. FederalGerman of Ministry the “Better Life” initiative of Trade Association andthe Kitchen from boththeGerman theYear” award Innovation of for whichitwon the“Kitchen line with it launched thenew In continued innovation. built-in products, thanksto continues toseegrowth in The and comfort. consumers’ health,hygiene eco-friendly andfocusedon new innovations thatwillbe standing appliances, offering free- will renew itslineof In 2008 Bauknecht and ProTouch 2009 brand , Bauknecht finishing, Pure 2007 oven , 40 BRANDS PREFERRED IN GERMANY LESS ENERGY ONE OFTHEMOST SuperEco set atthe washing machines when energy thantraditional approximately washing machineconsumes The Bauknecht SuperEco 60 cycle. degrees Celsius 40 percent less % HEALTH ADVANTAGE vnfntos Additionally, oven functions. steamcookingwithclassic of together thehealthadvantage The newsteamoven brings even forless experiencedcooks. guarantees perfectresults, while anintegrated meatprobe delivers more tendermeat, and bakingwithextra steam roasting the combinationof

BAUKNECHT P.87 THE BAUERS

PASSIONATE ACTIVE ADVENTUROUS ORGANIZED THE BAUERS P.90 THE BAUERS CREATIVE

The Bauer family spends time doing what they love. They have diverse hobbies and interests. Since they are always on the go, they want a garage storage solution that lets them find items quickly and easily. VERSATILE STYLISH ORGANIZED TOUGH

DURABLE P.91 GLADIATOR INNOVATIVE

A Gladiator brand garage provides complete organization for the busy Bauer family. Gladiator Garageworks products are specifically designed for the harsh environment of the garage, and it is the only organization line to complement its storage solutions with matching appliances that are able to withstand extreme temperatures.

GLADIATOR “SMART SOLUTIONS”

“Smart Solutions” by Gladiator brand includes the golf caddy, ball caddy, project caddy and clean-up caddy. This series, introduced in early 2008, adds another level of innovation to the Gladiator organization line, addressing the plights of the Gladiator brand consumer and making life easier one product at a time. GLADIATOR P.93 GLADIATOR

Gladiator Project Caddy Gladiator Clean-Up Caddy

Gladiator Golf Caddy Gladiator Ball Caddy GLADIATOR P.94 EXPANSION CONTINUED BRAND expand intoadditional markets incoming years. The brand willbeginsellinginCanada in Garageworks brand isgearingupforglobal expansion aswell. consumer lifestyles. new productsdesignedtobettersupportspecific Gladiator restoration andgardening have and uniquestorage needs. specific Consumers whoenjoysports, outdooractivities, automotive launched the the home, WhirlpoolCorporation developed and seeing thegarage asanuntappedroom within Armed withthisconsumer knowledge and need to somehow organize theirgarage clutter. came from real consumers whoexpressed a The originalideafor Beyond expansionwithintheproductline, Gladiator Look fortheseforthcoming, innovative aemr tm f thefloor take more itemsoff New wallproductstohelpconsumers Unique solutionsforstorage areas inout-of-reach with even more storage space Larger cabinets toprovideconsumers Garageworks isprepared tomeettheseneeds with Garageworks solutions: Gladiator Gladiator Garageworks brand. 2008 Garageworks Gladiator , withplansto 40 GROWTH CONSUMER TRENDS ALIGNED WITH provide solutions. Garageworks products as storage space, used asaworkshop orserves their garage iscluttered, parking theircar. Whether for somethingotherthan U.S. residents usetheir garage Approximately Gladiator the the continuedsuccess of and usable. that spacemuch more friendly to theirhome, whilemaking fully remodeled garage canadd understand thevaluethata Consumers are beginningto These trends bodewell for Garageworks brand. 40 Gladiator percent of % The room formerly known asthegarage. MOBILE WORKSTATION easy tocleanwithawet cloth. coat thatresists stainsandis surface issealedwithaclear a mobileworkstation. The modular componentstocreate two surface installsontopof Gladiator VersaTop work

GLADIATOR P.95 OUR PEOPLE P.96 challenging work inaglobal company where contributions matter. Corporation. Itprovides themwiththeopportunity to engagein is whatattracts andretains thebest peopleto Whirlpool experiences thatcan'tbefound elsewhere. TheWoW experience possibilities for growth andachievement —providing compelling (WoW) offers employees endless The “World ofWhirlpool” on HGTV whenEd mistakenly stated ENERGY STAR were installed inEd's home, andhe in appliances ontheshow. Myidea then mentionedenergy efficiency water to begreen. Together with I was watching “Living withEd” Corporate Communications, we that dishwashers usetoo much contacted theshow. my localHRdepartmentand CARLA COUNTS made adifference. Findlay, Ohio, USA Material Tugger ® qualified appliances Whirlpool great working environment positive energy thatIfind passion, commitment and Whirlpool, andIalready Brand Marketing Manager Microwave Ovens, Europe feel rightathome. The all around mecreate a Our People that breeds success. I recently joined MARK SIVA Comerio, Italy

OUR PEOPLE P.97 OUR PEOPLE P.98 with afabulous team, surrounded respond withthesameanswer: Everyone asksmewhy Ienjoy I have challengingobjectives my jobsomuch,andIalways stimulates integration and by anenvironment that National SalesManager PAOLA MAYORGA professional growth. Bogota, Colombia ` a different perspective ontheintricacies global project. Theopportunitynotonly of ourbusiness. Inow appreciate whatit was asked to participate inanimportant I work inBrand Marketing inEurope but technical knowledge, italsogave me helped megetnew experience and means to beaglobalcompany. EWA FOLTYNSKA Dish Care, Europe Activity Manager Comerio, Italy I recently traveled to India regional HumanResources Australia. Theopportunity an experience thatIwill cultural orientationand I worked alongsidemy meeting. For 10days, peers from Indiaand for aWhirlpoolAsia HR Specialist -Talent provided mewitha carry withmefor JUDY ZHANG Shanghai, China all ofmy life. Management with Whirlpool,butfound company where you can been hired andtrusting me a career. Whirlpoolisa Benton Harbor, Michigan, I was lookingfor ajob promise madewhenIhad promoted to my new role I remember theday Iwas months inastrategy role at Whirlpool.Whirlpool LUDOVIC BEAUFILS Brand DishCare Director, JOE MATTHEWS consultant andonly16 with agreat challenge after seven years asa was delivering onthe fuel your passion. Sourcing Director in akey category. Comerio, Italy USA Europe

OUR PEOPLE P.99 OUR PEOPLE P.100 the trust thatWhirlpoolgives me. I amdirectly ableto contribute My suggestions are valued and I really enjoy thefreedom and MARCIO MIASHIRO Sales andOperation to thebusiness. São Paulo, Brazil Plan Leader together, accomplished more than aligned andfocused onachieving power ofagroup ofdiverse and I amamazed by thetremendous talented Whirlpoolindividuals, any individualwould have ever high-performance teams that, the privilegeofservingon a common goal.Ihave had Associate General Counsel Benton Harbor, Michigan, KIRSTEN HEWITT thought possible. Vice President & USA festival. Whirlpoolbelieved inmy and trust reposed inme onsucha abilities. Icherish theconfidence leading theproduct launchand promotions tiedto theDiwali Whirlpool, Iwas tasked with Three monthsafter Ijoined high-profile project. Director ofMarketing SUMIT JOSHI Delhi, India feel like partoftheteam. impressed andinspired welcomed andmadeto Benton Harbor, Michigan, Corporation’s greatest CAROLYN TORRES Cooking Business Team Product Development From day one, Iwas by thepassion and coworkers. Ifirmly asset isitspeople. believe Whirlpool I amconsistently dedication ofmy Manager, USA people around theworld, peoplewho are as thoughI'mpartofsomethinggreat, something relevant. Iwork withbright more important,makingadifference. Working for Whirlpoolmakes mefeel engaged inmakingachangeand, ARTHUR AZEVEDO Finance Director São Paulo, Brazil

OUR PEOPLE P.101 A strong sense of social responsibility instilled with an equally strong sense of business responsibility.

For nearly 100 years, Whirlpool Corporation has not only run a strong business for its employees, trade customers, consumers and shareholders, it also has been a good neighbor.

Whirlpool and its employees voluntarily look for opportunities to positively impact society, while also ensuring that those opportunities align with the company’s business. OUR SENSE OF RESPONSIBILITY P.102 Our Sense of Responsibility

HABITAT FOR HUMANITY® Whirlpool Corporation’s support of Habitat for Humanity International began in 1999 with the donation of an ENERGY STAR® qualified refrigerator and range to every Habitat for Humanity® home built in North America. Since then, the company has directly improved the lives of more than 44,000 families and donated nearly 90,000 appliances globally. COOK FOR THE CURE® Cook for the Cure®, presented by KitchenAid, was founded in 2001 to give passionate cooks a way to support Susan G. Komen for the Cure®. Through donation-with-purchase programs, special fundraising events, auctions and grassroots initiatives, Cook for the Cure® has raised more than $7 million globally to support the fight against breast cancer, with more than $6 million of that in the United States benefiting Komen for the Cure®. KitchenAid also supports breast cancer organizations in other countries including Canada, France, Germany, Greece and Israel. INSTITUT0 CONSULADO DA MULHER (Women’s Consulate Institute) The Instituto Consulado da Mulher is dedicated to improving the lives of low-income women living in Brazil. It encourages positive gender relations and the creation of small business cooperatives to help women develop their entrepreneurial skills so they can provide their families with a steady income. More than 150,000 women have benefited from the program since 2002. studentsstudents through through Junior Junior IT BEGINS Achievement.Achievement. In In Mexico, Mexico, AT HOME employeesemployees raised raised funds funds and and volunteeredvolunteered to to help help children children The Whirlpool Corporation withwith physical physical disabilities disabilities from from commitment begins with its low-incomelow-income families. families. And And in in more than 73,000 employees Italy,Italy, employees employees participated participated in worldwide. Its values – respect, ina ahalf-marathon half-marathon and and tennis tennis integrity, diversity with IMPROVINGIMPROVING tournamenttournament to to support support cancer cancer inclusion, spirit of winning, PEOPLE’SPEOPLE’S treatmenttreatment and and research. research. and teamwork – provide the QUALITYQUALITY foundation for how Whirlpool REDUCINGREDUCING OUR OUR Corporation employees do OFOF LIFELIFE ENVIRONMENTALENVIRONMENTAL business: the right way. FOOTPRINT WhirlpoolWhirlpool Corporation Corporation helps helps FOOTPRINT peoplepeople shape shape a a better better world world for for WhirlpoolWhirlpool Corporation Corporation themselvesthemselves and and others. others. By By takestakes its its environmental environmental providingproviding time time and and resources, resources, responsibilitiesresponsibilities very very seriously seriously thethe company company aims aims to to help help more andand continues continues to to play play a aleading leading moreindividuals individuals reach reach their theirfull rolerole in in the the development development of of fullpotential, potential, and, and, by doingby doing so, so, homehome appliances appliances for for improveimprove the the quality quality of of life life for for consumersconsumers throughout throughout the the By providing employees with themselves,themselves, their their neighbors neighbors worldworld that that incorporate incorporate withdevelopment development and growth and growth andand their their communities. communities. innovativeinnovative technologies technologies and and opportunities, Whirlpool helphelp conserve conserve energy energy and and Corporation creates an waterwater resources, resources, as as it it has has for for engaging work environment 30 moremore than than 30 years.years. where individuals can In2003 2003, Whirlpool contribute to their fullest. In , Whirlpool InIn addition addition to to Habitat Habitat for for Corporation was the first In 2007, the company was Corporation was the first Humanity,®Humanity,® Susan Susan G. G. Komen Komen major appliance company to recognized by FORTUNE® major appliance company to forfor the the Cure® Cure® and and Instituto Instituto announce a global greenhouse magazine as one of the 20 best announce a global greenhouse ConsuladoConsulado da da Mulher, Mulher, gas (GHG) reduction target. In companies for leadership gas (GHG) reduction target. In WhirlpoolWhirlpool Corporation Corporation 20072007, the company announced development globally. , the company announced OUR SENSE OF RESPONSIBILITY P.106 employeesemployees lend lend support support to to a asignificant significant increase increase in in its its EXTENDING communitiescommunities around around the the commitmentcommitment by by increasing increasing its its world.world. For For example, example, employees employees GHGGHG target target and and committing committing to to ITS VALUES atat Whirlpool Whirlpool Corporation’s Corporation’s reducereduce its its total total greenhouse greenhouse gas gas 6 6 2012 THROUGHOUT THE headquartersheadquarters in in Benton Benton emissionsemissions 6 .6.percentpercent by by 2012 . . SUPPLY BASE Harbor,Harbor, Michigan, Michigan, donate donate Also in 2007, Whirlpool thousandsthousands of of hours hours hosting hosting 2007 Corporation announced a In , Whirlpool mentoringmentoring programs, programs, volun- volun- partnership with SmartWay Corporation formalized the teeringteering for for Habitat Habitat for for Transport,SM a collaboration key principles under which Humanity®,Humanity®, and and through through betweenAlso in 2007the U.S., Whirlpool the company’s suppliers are “executive“executive on on loan” loan” programs programs EnvironmentalCorporation announced Protection a required to operate. Whirlpool withwith civic civic groups. groups. Employees Employees Agencypartnership and the with freight SmartWay Corporation expects that the withwith the the compressor compressor subsidiary subsidiary industryTransport, to increaseSM a collaboration energy products it makes and the inin China China spend spend quality quality time time efficiencybetween thewhile U.S. significantly components that comprise withwith and and teach teach English English to to reducingEnvironmental greenhouse Protection gases them will be produced in a nearlynearly 200 200childrenchildren residing residing in andAgency air pollution. and the freight manner compatible with its intemporary temporary shelter, shelter, and and industry to increase energy high standards. WhirlpoolWhirlpool China China employees employees efficiency while significantly provideprovide career career counseling counseling to to reducing greenhouse gases highhigh school school and and university university and air pollution. the Internet at whirlpoolcorp.com. Exchange Commission, both of whichalsoare available through the 2007 AnnualReport onForm 10-KfiledwiththeSecurities and mailed withthisAnnual Report and intheFinancialSupplementto in theFinancialSupplement to theCompany’s Proxy Statement “Management’s Discussion andAnalysis.” Thisinformation appears Consolidated Financial Statements andrelated notes, andthe summary shouldberead together withWhirlpoolCorporation’s complete understanding ofourfinancialcondition andresults, this condition andresults ofoperations for 2007 and2006.For amore The following isasummary ofWhirlpoolCorporation’s financial Our Results

OUR RESULTS P.107 FINANCIAL SUMMARY P.108 with revenuesof Whirlpool Corporation(“Whirlpool”)istheworld’sleadingmanufacturerofmajorhomeappliances EXECUTIVE OVERVIEW for theyearendedDecember On March FACTORS AFFECTINGCOMPARABILITY consumer productsthattranslateintoincreasedsalesandenhancedfinancialresults. that enableustocontinueoffercompetitivepricesacrossawidearrayofinnovative,high-quality translate intobenefitsforourtradecustomersandconsumersbygeneratingsignificantcostsavings will enhanceourabilitytorespondthesecompetitiveconditions.Webelievethiscombination productivity andcostcontrols,newinnovativeproductintroductions,improvedmix We believethatouracquisitionofMaytagCorporation(“Maytag”)onMarch trade customerswhohavemanychoicesanddemandforcompetitiveproducts,servicesprices. each geographicregion,ourcustomerbaseisconsolidatedandcharacterizedbylarge,sophisticated been anemergenceofstrongglobalcompetitorssuchasLG,BoschSiemens,Samsung,andHaier.In to ourtraditionalcompetitorssuchasElectrolux,GE,andKenmoreinNorthAmerica,therehas channel saleswhenassessingandforecastingfinancialresults. indicators ofindustrydemand.Inadditiontoprofitability,wealsofocusoncountry,brand,productand retail trends,housingstartsandcompletions,salesofexistinghomesmortgageinterestratesaskey our globaloperatingplatformandwhereappropriate,makestrategicacquisitionsinvestments. enhance ourtrademanagementplatform,improvetotalcostandqualitybyexpandingleveraging innovative newproducts,increasebrandcustomerloyalty,expandourpresenceinforeignmarkets, reportable segmentsconsistofNorthAmerica( conduct ourbusinessthroughfourreportablesegments,whichwedefinebasedongeography.Our innovative productdesign,businessethics,socialresponsibilityandcommunityinvolvement.We nition foraccomplishmentsinavarietyofbusinessandsocialefforts,includingleadership,diversity, a significantpresenceinmarketsthroughoutEuropeandIndia.Wehavereceivedworldwiderecog- We arealeadingproducerofmajorhomeappliancesinNorthAmericaandLatinhave material costs. results werelowerprimarilyduetoaweakU.S.industryappliance demandandsignificantlyhigher business reportedrecordresultswithsignificantimprovements over plan. Wealsoimprovedourcostproductivityperformanceacross theorganization.Ourinternational ing theMaytagintegrationandachievedourinitialacquisition costefficiencygoalsoneyearaheadof approximately price forMaytagwasapproximately an arrayofhomeappliancebrandsincluding cost overthesametimeframeby and ahalfyearswehaveseenunprecedentedmaterialcostinflation whichhasincreasedourinput and material-oil-relatedcostsincreased U.S. applianceindustryexperiencedthelargestyear-over-yearvolumedeclineinovertwodecades America ( included inourConsolidatedFinancial StatementsasofApril current yearpresentation. and Europesegments, respectively.Allpriorperiods presentedhavebeenreclassified toreflect business segment. Theresultsforthesebusinesses arenowbeingreportedwithin theLatinAmerica America operations andexportsofcertainportable appliancestoEuropewithin ourNorthAmerica financial results.Wepreviously includedthefinancialresultsforourCaribbeanandcertainLatin methodology ourchiefoperating decisionmakernowusestoevaluateeachsegment’soperating and During Competition inthehomeapplianceindustryisintenseallglobalmarketsweserve.Inaddition We monitorcountry-specificeconomicfactorssuchasgrossdomesticproduct,consumerconfidence, Our globalbrandedconsumerproductsstrategyoverthepastseveralyearshasbeentointroduce During thefirstquarterof 18% 31 2007 , 2006 of revenue),andAsia( 9 , wedeliveredrecordsalesandearningspershareinachallengingglobalmarket.The . 7 $19 million sharesofcommonstock. TheresultsofMaytag’soperationshavebeen , wecompletedtheacquisitionofMaytag.Maytag’sreportedconsolidated netsales . 4 billion andnetearningsof 31 2007 , 2005 $1 , weadoptedchangestooursegment reportingconsistentwiththe . 7 2% $1 billion. Weaccomplishedamajormilestonein were approximately . 9 of revenue). billion, includingapproximately $600 Maytag 60% $640 million fromtheprioryear.Duringlastthree of revenue),Europe( , Jenn-Air million fortheyearendedDecember $4 . 9 1 and billion. Withtheacquisition,weadded , 2006 Amana . 2006 20% $848 . Theaggregatepurchase while NorthAmerica 31 of revenue),Latin , million ofcashand 2006 2007 , coupledwith by complet- 31 , 2007 . in Excluding theimpactofforeigncurrency,Europenetsalesincreased driven bystrong result ofan currency, ahigheraverageunitsellingpriceandvolume. Theincreaseinsalesduetopriceisa demand fornewproductinnovationsandimproved and unitvolumesincreased contributed tohighernetsales.ExcludingtheimpactofMaytagacquisition,salesincreased volumes increased pared to net salesincreased and expansionofourbuilt-inappliancebusiness.Excludingthe impactofforeigncurrency,Europe new productintroductionsandimprovedmix,primarily attributabletothe contributing totheremainingincrease.Europe’sstrongsalesare drivenbygainsinmarketshare, Maytag acquisition,NorthAmericasalesdecreased unit sellingpriceduetoproductinnovationandbettermix.Excludingtheimpactof in volumetheU.S.waspartiallyoffsetbyhigherdemandCanadaandMexicoaaverage ume reflectsreducedindustryvolume,lowerOEMshipmentsandmarketshare.Thereduction price astheamountthatresultsfromdividingconsolidatednetsalesbyunitssold.Thedecreaseinvol- the averageunitsellingpriceoffsetbya in unitssold.Weexperienceda RESULTS OFOPERATIONS each oftherespectiveregions.Regionalresultsfor number ofunitssoldincreased volume andafavorableimpact from changesinforeigncurrency.Ascomparedtoprioryear,the total Significant regional trends were asfollows: significantly highermaterial-andoil-relatedcostslowershipmentswithinNorthAmerica. million ofassetgainsinthepreviousyearperiod.Annualresultswerenegativelyimpactedby earnings fromcontinuingoperationswere For theyearendedDecember trols. Ourresultsincluded based priceincreasesandimprovedproductmix,productivityimprovementsstrongcostcon- international businesses,cost-efficiencyrealizationassociatedwiththeacquisitionofMaytag,cost from continuingoperationsprimarilyreflectsstrongoperatingprofitimprovementwithinour $486 (“OEM”) salesandlowersharewithinourvalueMaytagbrands. resulting fromadeclineinapplianceindustrydemand,loweroriginalequipmentmanufacturer in theConsolidatedStatementsofIncomewerereclassifiedtocostsales,effectiveJanuary these changestoconform Excluding theimpactof foreigncurrency, LatinAmerica netsalesincreased economy, appliance marketandsharegains thatwerearesultofnewproduct introductions. Total unitssold increased 15 and costbasedpricing.Excluding theimpactofforeigncurrency,LatinAmericanetsalesincreased the applianceindustry,increased marketshare,strongeconomicconditionsthroughouttheregion Approximately . 9% 2006 Europenetsalesincreasedin • LatinAmericanetsalesincreased • We havereallocatedcertaincostspreviouslyincludedwithincorporateadministrativeexpenseto NorthAmericanetsalesincreasedin • Our internationalbusinessesexperiencedstrongperformancein Freight andwarehousingcostspreviouslyincludedinselling,generaladministrativeexpenses million or in 2007 as comparedto 2005 8 . . Netsalesincreased 3% by $6 $854 higher averageunitsellingpriceascomparedtoprioryear.The increaseinvolumeis 34 Whirlpool . 35 . 21 6 5% . 0% . per dilutedsharefortheyearendedDecember million wasreclassifiedin 6% due primarilytotheacquisitionofMaytag.Ascomparedprioryear,unit 2005 . Theaverageunitsellingpriceincreased in 22 2006 $72 2% brand performanceandthepositiveimpactofnewproductofferings. . 2007 primarily duetohighervolume.Averagesellingpriceincreased 9% . Organicvolumeandsalesgrowthweredrivenbycontinuedconsumer 31 million ofgainsassociatedwithassetsalesin 18 6 . compared to , . 4% 2007 . 23 presentation. 8% 2007 . decrease inunitsalesduring 9% . Theincreaseinvolumegrowth isaresultofstronggrowthin , consolidatednetsaleswere in 27 6 by . 4% . 2006 7% 2007 12 $647 decrease inunitssold.Wedefinetheaverageunitselling 2005 . in 1% as comparedto 2007 by compared to 2005 million, or due primarilyto continuedstrengthintheBrazilian 0 2006 5% Whirlpool . 8% . as comparedto . NorthAmericasalesincreasedin compared to and $8 2005 2006 . and 10 2005 per dilutedshare,increasingfrom 2007 10 , primarilyduetofavorableforeign have beenreclassifiedtoreflect KitchenAid $19 . 6% due primarilyto highervolumes. 2006 31 2006 2007 2 . , 4 in NorthAmerica,primarily compared to . 2006 9% billion. Consolidatednet , primarilyduetohigher due toa . Netsalesincreased driven byan 2007 . Theincreaseinearnings 16 brand performance. . 0% , comparedto 7 . in 6% 2005 Whirlpool 2006 increase in 8 2006 . which also 8% . increase 1 , 2% com- 2006 7 $42 brand . 1% 4% .

FINANCIAL SUMMARY P.109 FINANCIAL SUMMARY P.110 improved productmixandhigher volumes.Grossmarginincreasedin oil-related costsandinventorytransition costswhichweremitigatedbyproductivityimprovements, exchange rates. which combinedtomorethanoffsethighermaterial-andoil-related costsandunfavorablecurrency ly improvedvolumes,productivityimprovements,costcontrol initiativesandregionaltaxincentives impact offoreigncurrency.Grossmarginincreasedin which combinedtomorethanoffsethighermaterial-andoil-related costsandtheunfavorable higher volumes,productivityimprovements,costbasedpriceincreases andregionaltaxincentives savings fromongoingrestructuringeffortsinboth model pricingandhighermaterial-oil-relatedcosts.European operationscontinuetorealize partially offsetby highermaterial-andoil-related costs. to productivityimprovements, improvedproductmix,andcost-basedpriceadjustmentswhich were are assetsalegainsof the impactofforeigncurrency,Asianetsalesincreased improved productmixandcontinuedgrowthwithinIndia,thesegment’slargestmarket.Excluding prior year.Theseincreasesaredrivenbytheimpactofsuccessfulnewproductintroductions, increase insalesduetopriceisaresultofan price, increasedvolumeandafavorableimpactfromchangesinthevalueofforeigncurrency.The as comparedto improved in oil-related costs.Thesaleofcertainassetsalsocontributedtohigher grossmargin.Grossmargin productivity improvementsandinnovativeproductofferingsmore thanoffsethighermaterial-and regional taxincentivesandassetsalegainshadapositiveimpactonoverallgrossmarginin 2006 The tablebelowsummarizesgrossmarginpercentagesbyregion: particularly intheUnitedStates.IncludedgrossmarginforyearendedDecember Partially offsettingtheseimprovementsweresignificantlyhighermaterial-andoil-relatedcosts, price increased 2005 sa1. 01 533911.4 15.8 15.3 3.9 17.0 (0.6) 0.4 15.3 2.2 14.7 16.2 (0.1) 19.2 14.8% 0.2 (1.6)pts 0.4 15.2 1.6 13.2% 14.9 16.6 (0.7) pts 20.8 12.5% Significant regional trends were asfollows: Consolidated Asia Latin America Europe North America Gross Margin Gross Margin ments, productinnovationandanimprovedmixascomparedto able efficienciesasaresultofsynergiesrealizedfromtheacquisitionMaytag,productivityimprove- material- andoil-relatedcostslowerindustrydemand.Thisdecreasewaspartiallyoffsetbyfavor- costs. Margindeclineswerepartiallyoffsetbyproductivityimprovementsandacquisitionefficiencies. Maytag productmix,acquisitionintegration,purchaseaccountingcostsandhighermerchandising foreign currency,Asianetsalesincreased in 2006 Asiagrossmargindecreasedslightlyin • LatinAmericagrossmarginincreasedin • Asianetsalesincreased • NorthAmericagrossmargindecreasedin • Europegross marginincreasedin • . Stronginternationalperformance,acquisitionefficiencies,productivityimprovements, driven bystrongdemand,particularlyinIndia,andfavorableproductmix.Theaverageselling compared to 2006 The consolidatedgrossmarginpercentagein 2005 2 . 1% compared to in 2005 due primarilytohighervolume.Totalunitssoldincreased $65 2006 million. , primarilyduetohighermaterialcosts,lowerindustrydemand,unfavorable , whichcontributedtotheincreaseinnetsales.Excludingimpactof 21 . 2005 9% in as productivityimprovementsmorethanoffsetlowercomparable 2007 2007 10 as comparedto 11 compared to . 2007 1% . 8% 2007 2007 2007 in higher averageunitsellingpriceascomparedto 2006 as comparedto 2007 compared to compared to 2006 . and 12 2006 hne20 hne2005 Change 2006 Change 2006 . 9% 2007 2006 versus in as highervolumes,continued due toahigheraverageunitselling 2007 2006 . increased 2006 2006 2005 . Netsalesincreased , dueprimarilytocontinued , duetohighermaterial-and primarily duetohigher 2006 2006 , dueprimarilytosignificant- 20 as comparedto . Grossmargindecreased basis pointsversus 6 . 1% compared to 31 8 , . 3% 2007 2007 2005 in . 2006 , due 2007 brand investment,acquisitionandintegrationcostshighercompensationexpense. 2005 general andadministrativeexpenses,asapercentofconsolidatednetsales,increasedcomparedto of IndiaLimitedandrecordedagainapproximately and cost regionsinEuropeandNorthAmericareorganizethesalariedworkforcethroughoutEurope. ture thecookingandrefrigerationplatformsinLatinAmerica,shiftcapacitytolower andexitcostsassociatedwiththeacquisition,primarilyrelatetoincurredrestruc- erance These amountshavebeenidentifiedasaseparatecomponentofoperatingprofit,excludingMaytagsev- from expenseof (expense) for increase inlegalreservesaswellhighernon-incomebasedtaxes.Interestandsundryincome a versus volume, acquisitionefficienciesandadministrativecostreductions.In es, asapercentofconsolidatednetsales,decreasedcomparedto stock, ourownershipinterestinWhirlpoolofIndiaLimitedis change intheStockExchangeBoardofIndialistingstandardsandregulations.Followingsale Restructuring Selling, General andAdministrative Net Earnings Discontinued Operations Earnings from Continuing Operations Income Taxes onSaleofInvestmentGain Interest Expense Interest andSundryIncome (Expense) these businessesallowedustofocusonourcoreappliancebusiness. $53 commercial andresidentialbusinessesasdiscontinuedoperations during compared to associated withdebtassumedandissuedtoacquireMaytag. in acquisition whichwasoffsetbylowerdebtlevelsatinterestratesduring in $31 fiscal yearandtheimpactofdiscreteitems,ifany,adjust quarterlyrate,asnecessary. interim period,wemakeourbestestimateoftheeffectivetaxrate expectedtobeapplicableforthefull year, dispersionofglobalincome,taxcreditavailability,and planningactivities.Attheendofeach rates andchangesinresultfromacombinationofcertaindiscreteitemsrecognizedduringthe recognized in $31 2006 2006 million thatwasrealizedtoreflectthesaleofaninvestmentandacharge million inlossesfromdiscontinuedoperationsfor 2005 million gainonthesaleofaninvestmentwhilecurrentyearexpenseincludesa , . Thebenefitfromhighersalesandacquisitionefficienciesweremorethanoffsetbyincreased 2006 $486 , weincurredhigherdebtlevelsassociatedwithassumedandissuedfortheMaytag increased , respectively,duetothefactorsdescribedabove.Earningswere impactedby , and million and 2005 2006 Net earningswere 2005 Restructuring initiativesresultedinchargesof The effectiveincometaxratewas 2005 $2 Interest expensein . Lowerexpensein $72 decreased by million toexpenseof to increasecertainlegalreserves. , respectively,reflectingongoingeffortstooptimizeourglobaloperatingplatform. million ascomparedto $422 We classifiedtheHooverfloor-care,Dixie-Narcovendingsystems, andJade During million in $63 $640 2007 million fromexpenseof In 2006 2007 million in Earnings fromcontinuingoperationswere 2007 2006 Interest andsundryincome(expense)increasedby $63 , wesoldapproximately was primarilyduetothecombinationofagain increased , consolidatedselling,generalandadministrativeexpens- million comparedto and 2005 14 2007 2005 . Theincreaseprimarilyreflectsdebtservice . 5% $1 , respectively,duetothefactorsdescribedabove. in 2007 versus $7 million ascomparedto 2007 million. Thissalewasexecutedtosatisfya and $65 $61 $433 , 75% 20 2006 million toexpenseof million, 9 . 2006 4% . million and 2006 million shares,or in , respectively. . Theprioryearresultsinclude 2006 2006 , primarilyduetohighersales $55 2006 , consolidatedselling, million and and $422 2006 2007 $21 . Thedecisiontodivest 28 $647 million thatwas . million in 6% . Forninemonths . Interestexpense $17 7% $2 $7 in million in , ofWhirlpool $57 million million 2005 million and $61 million in 2006 . The million 2007

FINANCIAL SUMMARY P.111 FINANCIAL SUMMARY P.112 December by increasedspendingassociated witha terms aswelllowerglobaltaxes. Cashprovidedbycontinuingoperationswasnegativelyimpacted balances weremorethanoffset by improvedtradereceivablecollections,accountspayable higher salesvolumesinLatinAmericaandproducttransitions intheU.S.Theincreasedinventory than anticipateddemandinNorthAmericaduringthefourth quarter of continuing operationsalsoreflectscashconsumedfromincreased inventoriesasaresultoflower primarily fromourLatinAmericaandEuropesegmentsascompared to December higher laundry inventory tosupportplantclosures andtransitionofthe within ourEuropeanandLatin Americanbusinesssegments.Increasedinventories,whichinclude in accountsreceivable collectionsandincreases inaccountspayable. Whirlpool facilities, consumedadditionalcash during new productintroductions,includingtherevitalizationof and nickel,aswellsteel.Weexpecttooffsetthesehighercostswithproductivityimprovements, 2008 ating activitiesin operating activitiesin global brandedconsumerproductsstrategyofdeliveringrelevantinnovationtomarketsworldwide. and traderesponsetoournewproductofferingshasbeenpositive,wecontinueaccelerate implemented cost-basedpriceadjustmentsandimprovedproductmix. We expectmodestglobalapplianceindustrygrowthduring FORWARD-LOOKING PERSPECTIVE Cash Flows from Operating Activities ofContinuing Operations 2007 equivalents andfinancingarrangements.Ourcash were We expecttomeetourcashneedsfor SOURCES ANDUSESOFCASH may repurchaseupto periods presented. U.S., Europeandotherpublicbondmarkets.Weareincompliancewiththefinancialcovenantsforall also providedbybankborrowingsonuncommittedlines.Wehaveaccesstolong-termfundinginthe Inaddition,outsidetheU.S.,short-termfunding is these marketswillcontinuetoremainavailable. the U.S.andEurope,whicharesupportedbycommittedbanklines,weanticipatethataccessto months. Wefinanceworkingcapitalfluctuationsprimarilythroughthecommercialpapermarketsin consists ofincreasedproductioninthefirsthalfyeartomeetdemandsummer The volumeandtimingofrefrigerationairconditioningproductionimpactsourcashflows have varyingneedsforshort-termworkingcapitalfinancingasaresultofthenatureourbusiness. By diversifyingthematuritystructure,weavoidconcentrationsofdebt,reducingliquidityrisk.We Our objectiveistofinanceourbusinessthroughtheappropriatemixoflong-termandshort-termdebt. FINANCIAL CONDITION ANDLIQUIDITY and in Europeisexpectedtobeflatversus authorization remainsoutstanding. outstanding commonstockfortheyearendedDecember North Americaweexpectindustrydemandtodecline Western Europe.Wecontinuetoexpectstrongemergingmarketapplianceindustrygrowth.Within nesses intheU.S.housingmarketandweakereconomicconditionsconsumerconfidence Our innovationproductpipelinecontinuestogrowanddrivehigheraveragesalesvalues,consumer Prices formaterialsandoil-relatedcostsareexpectedtoincreasebyapproximately On June 5 , largelydrivenbyincreasesincomponentparts,basemetals,suchascopper,aluminum,zinc - as comparedto 10% for theyear,respectively. 31 31 15 , , 2005 2006 , 2004 2006 . Cashprovidedbyoperatingactivities benefitedfromhigherearnings,primarily . Cashprovidedbycontinuingoperationsfor , theBoardofDirectorsauthorizedasharerepurchaseprogramunderwhichwe $262 $500 2007 was million atDecember million ofoutstandingcommonstock.Werepurchased $880 was $927 million, adecreaseof 2008 million, anincreaseof 2007 Maytag from cashflowscontinuingoperations,and levels; LatinAmericaandAsiaareexpectedtogrow 31 dishwasher recall.Cashprovided bycontinuingoper- , 2006 . $4 2006 3 - 5% million comparedtotheyearended 31 Maytag , for theyear.Industryappliancedemand $47 but waslargely offset byimprovements 2008 2007 million comparedtotheyearended 2007 Cash providedbycontinuing . Approximately primarily duetocontinuedweak- branded products,previously reflects higherearnings Maytag $201 2006 2007 million atDecember . Cashprovidedby as wellsupportfor laundry product to $97 $368 $350 million ofthe million of million in 5 - 8% 31 , offset bylowercommonstockissuancesin acquisition ofMaytagthatwasnotcompletelyrepaidbyyearend. Theseincreaseswerepartially The increaseincashisprimarilyduetoproceedsreceivedfrom longtermdebtassociatedwiththe operations in stock relatedtooptionexercisesof to commonstockholderstotaling the yearendedDecember Maytag. Repaymentsoflong-termdebtreflectthematurityWhirlpoolandMaytagdebt.During debt whichreplacedcommercialpaperborrowingsinitiallyissuedtofinancetheacquisitionof our maturing borrowings of short-term borrowingswere compared toaninflowof continuing operationswasanoutflowof from continuingoperationswasanoutflowof Cash Flows from Investing Activities ofContinuing Operations investment gradecounterparties toreduceexposurenonperformanceonsuchinstruments. purposes. Derivativefinancialinstruments arecontractedwithadiversifiedgroupofprimarily instruments areviewedasrisk management toolsandarenotusedforspeculationortrading when deemedappropriate,through theuseofderivativefinancialinstruments.Derivative cial condition.Wemanageexposure totheserisksthroughouroperatingandfinancingactivities and, foreign interestrates,andcommodityprices,whichcanaffectour operatingresultsandoverallfinan- internal auditplanningandexecutioncycle. Management oversight,drivesriskmitigationdecision-making andisfullyintegratedintoour and Reportingrisk.TheEnterpriseRiskManagementprocess receivesBoardofDirectorsand and mitigationcoveringthecategoriesofEnterprise,Strategic, Financial,OperationandCompliance We haveinplaceanEnterpriseRiskManagementprocessthat involvessystematicriskidentification MARKET RISK Cash Flows from FinancingActivities ofContinuing Operations million fortheyearsendedDecember proceeds receivedfromthesaleofcertainMaytagdiscontinuedbusinesses million during million andthepurchaseofminorityinterestsharesaBrazilsubsidiaryinamount The decreasewasprimarilyduetocashdisbursedacquireMaytag,netofacquired, activities fromcontinuingoperationsincreased technologies andourglobaloperatingplatforminitiatives. between $600millionand$625in investments toimproveourcompetitivenessinfiscal resources tobettersupportourglobalproducts,brandsandcustomers.Weintendmakeadditional optimize ourregionalmanufacturingfacilities,supplybase,productplatformsandtechnology accelerating ourrateofinnovation.Weplantocontinuecomprehensiveworldwideeffort home applianceindustrybyreducingcosts,drivingproductivityandqualityimprovements, the saleofcertainMaytagdiscontinuedbusinesses. cash flowusedininvestingactivitiesfromcontinuingoperations ing tosupporttheexpansionofoperationsinMexicoandintegrationMaytag.Offsetting as comparedto We areexposedtomarketriskfromchangesinforeigncurrency exchangerates,domesticand The goalofourglobaloperatingplatformistoenhancecompetitivepositioninthe 2006 $300 $381 2005 2006 million intheprioryear.Theyearreflectsshort-termdebtissuedtopay was aninflowof million Eurobondprincipal.Prioryearresultsalsoreflectproceedsoflong-term , primarilyduetocashdisbursedacquireMaytagandincreasedcapitalspend- . Offsettingcashusedininvestingactivitiesfromcontinuingoperationswere $29 31 , million fortheyearendedDecember 2007 $243 $134 million fortheyearendedDecember we alsorepurchasedstocktotaling $68 $29 31 million andreceivedproceedsfromtheissuanceofcommon million. Cashusedinfinancingactivitiesfromcontinuing million comparedtoanoutflowof , $331 2007 2008 2006 million comparedtoanoutflowof and $696 in supportofourinvestmentinnovativeproduct $764 as comparedto 2006 million intheyearendedDecember million fortheyearendedDecember 2008 , respectively.Cashusedininvesting . Capitalspendingisexpectedtobe Cash usedininvestingactivitiesfrom 2005 Cash usedinfinancingactivities 31 2006 , . 2006 $368 31 are proceedsreceivedfor , $170 . Netrepaymentsof million, paiddividends 2007 $100 $1 million in compared to . 2 million and billion lastyear. 31 2005 31 , $53 2007 , $797 2006 $110 .

FINANCIAL SUMMARY P.113 FINANCIAL SUMMARY P.114 $200 would haveresultedinanincrementalunrealizedgainofapproximately resulted inanincrementalunrealizedlossofapproximately exchange ratemovementineachcurrencyourportfolioofforeigncontractswouldhave interest rateswouldhaveresultedinanincremental in Whirlpoolcommonstock,theS&P an incremental December and forecastedcommoditiespurchasesthatarenotfixeddirectlythroughsupplycontracts.Asof underlying exposures. or gainswouldbeoffsetbycorrespondinglosses,respectively,inthere-measurementof the useofthesecontractstoneutralizeeffectexchangeratefluctuations,suchunrealizedlosses sensitive tochangesinforeigncurrencyexchangerates.AtDecember related toongoingbusinessandoperationalfinancingactivities.Foreigncurrencycontractsare price riskassociatedwithfirmlycommittedandforecastedcross-borderpaymentsreceipts * Cumulative total return is measured by dividing: (1)thesumof (a)thecumulative amountofthe dividendsfor themeasuremen 174.62 174.35 182.86 172.45 173.34 139.14 149.70 142.69 142.31 128.68 100 Years Ending BasePeriod 100 S&P S&P Composite 500Stock Index Whirlpool Corporation Company /Index INDEXED RETURNS Index fortheyears Composite er returnonourcommonstockwiththecumulativetotalofStandard&Poor’s(S&P) The graphbelowdepictstheyearlydollar(andpercentage)changeincumulativetotalstockhold- PERFORMANCE GRAPH $100 measurement period by (2) theshare price atthebeginning of themeasurement period. period, assuming dividend reinvestment, and(b) thedifference between share price atthe endandthebeginning ofthe ru ne 0 120.09 100 Group Index $0 hrpo oprto & 0 ne S&P500HouseholdAppliances S&P500Index Whirlpool Corporation We utilizeinterestrateswapstohedgeourrisk.AsofDecember We enterintocommodityswapcontractstohedgethepriceriskassociatedwithfirmlycommitted We useforeigncurrencyforwardcontracts,optionsandswapstohedgethe 0220 0420 062007 2006 2005 2004 2003 2002 Household Appliance 31 500 , 2007 Stock IndexandthecumulativetotalreturnofS&PHouseholdApplianceGroup $29 , a 2003 million gainora 10% through favorable orunfavorableshiftincommoditypriceswouldhaveresulted e0 e0 e0 e0 e0 Dec07 Dec06 Dec05 Dec04 Dec03 Dec02 2007 $25 500 .* Thegraphassumes million lossrelatedtothesecontracts. and theS&PHouseholdApplianceGroup. $1 . 0 million gainorlossrelatedtothesecontracts. 4.9179 6.1158.87 163.61 157.98 148.39 $100 $80 million, whilea was investedonDecember 31 , $85 2007 million. Consistentwith , a 31 10% 10% , 2007 favorable shift unfavorable , a 10% 31 shift in , 2002, t CONSOLIDATED STATEMENTS OF INCOME (Millions of dollars, except per share data) Year Ended December 31 2007 2006 2005 Net sales $19,408 $ 18,080 $ 14,317

EXPENSES Cost of products sold 16,517 15,420 12,123 Selling, general and administrative (exclusive of intangible amortization) 1,736 1,752 1,343 Intangible amortization 31 30 2 Restructuring costs 61 55 57 Operating profit 1,063 823 792

OTHER INCOME (EXPENSE) Interest and sundry income (expense) (63) (2) (65) Interest expense (203) (202) (130) Gain on sale of investment 7 —— Earnings from continuing operations before income taxes and other items 804 619 597 Income taxes 117 126 171 Earnings from continuing operations before equity earnings and minority interests 687 493 426 Equity in (loss) income of affiliated companies (18) 11 Minority interests (22) (8) (5) Earnings from continuing operations 647 486 422 Loss from discontinued operations, net of tax of $3 million and $26 million for the years ended December 31, 2007 and 2006 (7) (53) — Net earnings available to common stockholders $ 640 $ 433 $ 422

PER SHARE OF COMMON STOCK Basic earnings from continuing operations $ 8.24 $ 6.47 $ 6.30 Discontinued operations, net of tax (0.09) (0.71) — Basic net earnings $ 8.15 $ 5.76 $ 6.30 Diluted earnings from continuing operations $ 8.10 $ 6.35 $ 6.19 Discontinued operations, net of tax (0.09) (0.68) — CONSOLIDATED STATEMENTS OF INCOME P.115 OF INCOME STATEMENTS CONSOLIDATED Diluted net earnings $ 8.01 $ 5.67 $ 6.19 Dividends $ 1.72 $1.72$1.72

WEIGHTED—AVERAGE SHARES OUTSTANDING (IN MILLIONS) Basic 78.5 75.1 67.1 Diluted 79.9 76.5 68.3 CONSOLIDATED BALANCE SHEETS (Millions of dollars) December 31 2007 2006 ASSETS CURRENT ASSETS Cash and equivalents $ 201 $ 262 Accounts receivable, net of allowance for uncollectible accounts of $83 and $84 at December 31, 2007 and 2006, respectively 2,604 2,676 Inventories 2,665 2,348 Prepaid expenses 89 95 Deferred income taxes 324 372 Other current assets 672 524 Assets of discontinued operations — 240 TOTAL CURRENT ASSETS 6,555 6,517

OTHER ASSETS Goodwill, net 1,760 1,663 Other intangibles, net of accumulated amortization of $64 and $33 at December 31, 2007 and 2006, respectively 1,854 1,871 Other assets 628 551 TOTAL OTHER ASSETS 4,242 4,085

PROPERTY, PLANT AND EQUIPMENT Land 84 94 Buildings 1,226 1,174 Machinery and equipment 7,861 7,186 Accumulated depreciation (5,959) (5,297) Total property, plant and equipment 3,212 3,157 TOTAL ASSETS $14,009 $ 13,759

LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 3,260 $ 2,945 Accrued expenses 633 698 Accrued advertising and promotions 497 550 Employee compensation 444 420 Notes payable 298 521 Current maturities of long—term debt 127 17 Other current liabilities 634 771 Liabilities of discontinued operations — 121 CONSOLIDATED BALANCE SHEETS P.116 BALANCE SHEETS CONSOLIDATED TOTAL CURRENT LIABILITIES 5,893 6,043

NONCURRENT LIABILITIES Long—term debt 1,668 1,798 Postretirement benefits 1,061 1,207 Pension benefits 725 838 Other liabilities 682 542 TOTAL NONCURRENT LIABILITIES 4,136 4,385 Commitments and contingencies Minority interests 69 48

STOCKHOLDERS' EQUITY Common stock, $1 par value, 250 million shares authorized, 103 million and 102 million shares issued at December 31, 2007 and 2006, respectively, 76 million and 78 million shares outstanding at December 31, 2007 and 2006, respectively. 103 102 Additional paid—in capital 1,993 1,869 Retained earnings 3,703 3,205 Accumulated other comprehensive loss (270) (643) Treasury stock — 27 million shares and 24 million shares at December 31, 2007 and 2006, respectively. (1,618) (1,250) TOTAL STOCKHOLDERS' EQUITY 3,911 3,283 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $14,009 $ 13,759 CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of dollars) Year ended December 31 2007 2006 2005

OPERATING ACTIVITIES OF CONTINUING OPERATIONS Net earnings $ 640 $ 433 $ 422 Loss from discontinued operations 7 53 — Earnings from continuing operations 647 486 422 Adjustments to reconcile earnings from continuing operations to cash provided by operating activities from continuing operations: Equity in losses of affiliated companies, less dividends received 18 52 Gain on disposition of assets (65) (4) (39) Gain on sale of investment (7) —— Gain on disposition of businesses — (32) (9) Depreciation and amortization 593 550 442 Changes in assets and liabilities, net of business acquisitions: Trade receivables 181 50 (173) Inventories (194) (118) 37 Accounts payable 105 44 87 Restructuring charges, net of cash paid (82) (80) 8 Taxes deferred and payable, net 10 (154) (105) Accrued pension (70) 53 47 Employee compensation (24) 25 79 Other (185) 55 86 Cash Provided By Continuing Operating Activities 927 880 884

INVESTING ACTIVITIES OF CONTINUING OPERATIONS Capital expenditures (536) (576) (494) Proceeds from sale of assets 130 86 93 Proceeds from sale of businesses — 36 48 Proceeds from sale of Maytag adjacent businesses 100 110 — Purchase of minority interest shares — (53) — Acquisitions of businesses, net of cash acquired — (797) (77) Other (25) —— Cash Used In Investing Activities of Continuing Operations (331) (1,194) (430)

FINANCING ACTIVITIES OF CONTINUING OPERATIONS Net (repayments) proceeds of short—term borrowings (243) 381 (124) Proceeds from borrowings of long—term debt 3 757 — Repayments of long—term debt (17) (1,046) (7) Dividends paid (134) (130) (116) Purchase of treasury stock (368) — (34) P.117 FLOWS OF CASH STATEMENTS CONSOLIDATED Common stock issued 68 54 102 Other (5) 13 9 Cash (Used In) Provided By Financing Activities of Continuing Operations (696) 29 (170) Cash Provided By (Used In) Discontinued Operations Operating Activities 6 8— Investing Activities — (3) — Cash Provided By Discontinued Operations 6 5— Effect of Exchange Rate Changes on Cash and Equivalents 33 18 (3) (Decrease) Increase in Cash and Equivalents (61) (262) 281 Cash and Equivalents at Beginning of Year 262 524 243 Cash and Equivalents at End of Year $ 201 $ 262 $ 524

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest $ 204 $ 225 $ 137 Cash paid for taxes 39 173 276 REPORTS OF MANAGEMENT P.118 registered publicaccountingfirm’squalificationsandindependence,( of financialdisclosure.Thecommitteealsohasthe Discussion andAnalysisofFinancialConditionResultsOperations,”tomonitortheadequacy registered publicaccountingfirm,includingtheCompany’sdisclosuresunder“Management’s statements andquarterlyfinancialrelatedreportswithmanagementtheindependent these functions,thecommitteehasresponsibilitytoreviewanddiscussannualauditedfinancial Company’s internalauditfunctionandindependentregisteredpublicaccountingfirm.Inperforming February Executive VicePresidentandChiefFinancialOfficer Roy W.Templin non-audit servicesprovidedbytheindependentregisteredpublicaccountingfirm. and approveallauditengagementfeestermspre-approvethenature,extent,costof independent registeredpublicaccountingfirmandexercise statements, ( accounting functionsandinternalcontrolsmonitors( requirements. TheauditcommitteeprovidesindependentandobjectiveoversightoftheCompany’s directors who,intheopinionofboard,meetrelevantfinancialexperience,literacy,andexpertise controls areregularlyreviewedbyaninternalauditstaff. dance withmanagement’sauthorizations.TheCompany’saccountingrecords,policiesandinternal Company’s booksandrecords,theassetsaremaintainedaccountedfor,inaccor- Company maintainsasystemofinternalcontrolsdesignedtoprovidereasonableassurancethatthe accounts Company AccountingOversightBoard(UnitedStates). United States.TheirauditsareconductedinconformitywiththeauditingstandardsofPublic Whirlpool andits subsidiariesinaccordancewithaccountingprinciplesgenerallyacceptedthe statements presentfairlytheconsolidatedfinancialposition,ofincomeandcashflows accounting firm,whosereport,basedupontheiraudits,expressestheopinionthatthesefinancial The financialstatementshavebeenauditedbyErnst&YoungLLP,anindependentregisteredpublic The managementofWhirlpoolCorporationhaspreparedtheaccompanyingfinancialstatements. REPORT BY MANAGEMENT ONTHECONSOLIDATED FINANCIALSTATEMENTS The auditcommitteeoftheBoardDirectorsCompanyiscomposedfiveindependent The financialstatementswerepreparedfromtheCompany’saccountingrecords,booksand which, inreasonabledetail,accuratelyandfairlyreflectallmaterialtransactions.The 22 , 2 2008 ) theCompany’scompliancewithlegalandregulatoryrequirements,( responsibility toretainand 1 ) theobjectivityofCompany’sfinancial the committee’ssole 4 ) theperformanceof terminate the authority to 3 ) theindependent Company’s review MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Whirlpool Corporation is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a – 15(f) and 15d – 15(f) under the Securities Exchange Act of 1934. Whirlpool’s internal control system is designed to provide reasonable assurance to Whirlpool’s management and board of directors regarding the reliability of financial reporting and the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. The management of Whirlpool assessed the effectiveness of Whirlpool’s internal control over financial reporting as of December 31, 2007. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated Framework. Based on our assessment and those criteria, management believes that Whirlpool maintained effective internal control over financial reporting as of December 31, 2007. Whirlpool’s independent registered public accounting firm has issued an audit report on its assessment of Whirlpool’s internal control over financial reporting. This report appears on page 121.

Jeff M. Fettig Chairman of the Board and Chief Executive Officer February 22, 2008

Roy W. Templin Executive Vice President and Chief Financial Officer P.119 OF MANAGEMENT REPORTS February 22, 2008 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON CONSOLIDATED FINANCIAL STATEMENTS

THE STOCKHOLDERS AND BOARD OF DIRECTORS WHIRLPOOL CORPORATION BENTON HARBOR, MICHIGAN We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Whirlpool Corporation as of December 31, 2007 and 2006, and the related consolidated statements of income, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2007 (not presented separately herein), and in our report dated February 22, 2008, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying financial statements (presented on pages 115 through 117) is fairly stated, in all material respects from which it has been derived. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Whirlpool Corporation’s internal control over financial reporting as of December 31, 2007, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 22, 2008 expressed an unqualified opinion thereon.

Chicago, Illinois February 22, 2008 REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM P.120 PUBLIC ACCOUNTING OF INDEPENDENT REGISTERED REPORTS February Chicago, Illinois opinion thereon. stockholders’ equity,andcashflowsforeachofthethreeyears intheperiodendedDecember 2007 We haveauditedWhirlpoolCorporation’sinternalcontroloverfinancialreportingasofDecember BENTON HARBOR,MICHIGAN WHIRLPOOL CORPORATION THE STOCKHOLDERS ANDBOARD OFDIRECTORS INTERNAL CONTROL OVER FINANCIALREPORTING REPORT OFINDEPENDENTREGISTERED PUBLICACCOUNTING FIRMON only inaccordancewithauthorizationsofmanagementanddirectorsthecompany;( accepted accountingprinciples,andthatreceiptsexpendituresofthecompanyarebeingmade recorded asnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerally dispositions oftheassetscompany;( maintenance ofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactions internal controloverfinancialreportingincludesthosepoliciesandproceduresthat( for externalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’s assurance regardingthereliabilityoffinancialreportingandpreparationstatements provides areasonablebasisforouropinion. such otherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatouraudit the designandoperatingeffectivenessofinternalcontrolbasedonassessedrisk,performing trol overfinancialreporting,assessingtheriskthatamaterialweaknessexists,testingandevaluating maintained inallmaterialrespects.Ourauditincludedobtaininganunderstandingofinternalcon- obtain reasonableassuranceaboutwhethereffectiveinternalcontroloverfinancialreportingwas Oversight Board(UnitedStates).Thosestandardsrequirethatweplanandperformtheauditto based onouraudit. responsibility istoexpressanopiniononthecompany’sinternalcontroloverfinancialreporting reporting includedinManagement’sReportonInternalControlOverFinancialReporting.Our financial reporting,andforitsassessmentoftheeffectivenessinternalcontrolover Whirlpool Corporation’smanagementisresponsibleformaintainingeffectiveinternalcontrolover Committee ofSponsoringOrganizationstheTreadwayCommission(theCOSOcriteria). 2007 of December Oversight Board(UnitedStates),theconsolidatedbalancesheets ofWhirlpoolCorporationas control overfinancialreportingasofDecember of compliancewiththepoliciesorproceduresmaydeteriorate. to theriskthatcontrolsmaybecomeinadequatebecauseofchanges inconditions,orthatthedegree detect misstatements.Also,projectionsofanyevaluationeffectiveness tofutureperiodsaresubject disposition ofthecompany’sassetsthatcouldhaveamaterialeffect onthefinancialstatements. reasonable assuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use, A company’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonable We conductedourauditinaccordancewiththestandardsofPublicCompanyAccounting We alsohaveaudited,inaccordancewiththestandardsof Public CompanyAccounting In ouropinion,WhirlpoolCorporationmaintained,inallmaterial respects,effectiveinternal Because ofitsinherentlimitations,internalcontroloverfinancial reportingmaynotpreventor , basedoncriteriaestablishedinInternalControl—IntegratedFrameworkissuedbythe of WhirlpoolCorporationandourreportdatedFebruary 22 , 2008 31 , 2007 and 2006 , andtherelatedconsolidatedstatementsofincome,changesin 2 ) providereasonableassurancethattransactionsare 31 , 2007 , basedontheCOSOcriteria. 22 , 2008 expressed anunqualified 1 ) pertaintothe 3 ) provide 31 , 31 ,

REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM P.121 FIVE-YEAR SELECTED FINANCIAL DATA P.122 annsfo otnigoeain 647 Loss from discontinued operations Earnings from continuing operations Earnings from continuing operations ercain562 536 Depreciation Net capitalexpenditures Net earningsavailable to urn sest urn iblte 1.1 Total debt-appliance business Current assets to current liabilities CONSOLIDATED OPERATIONS e ae 19,408 $ Operating profit Net sales (Millions ofdollarsexcept share andemployee data) FIVE-YEAR SELECTEDFINANCIALDATA (9) (8) (7) (6) (5) (4) (3) (2) (1) 73,682 15,011 Total return to shareholders Number ofemployees (year-end) Number ofstockholders (year-end) Number ofcommon shares outstanding OTHER DATA 1.72 48.96 5.5% Interest coverage 8.01 81.63 Pre-tax margin Operating profit margin KEY RATIOS 1,668 14,009 3,911 Closing Stock Price—NYSE Book value 662 Dividends Diluted netearnings 134 5,893 6,555 $ Diluted earningsfrom continuing operations Basic earningsfrom continuing operations PER SHAREDATA 3,212 Stockholders’ equity Long-term debt Total assets Property, plantandequipment-net Working capital Current liabilities Current assets CONSOLIDATED FINANCIALPOSITION Dividends rc annsrto10.2 Price earningsratio Return onaverage stockholders’ equity Net margin Return onaverage total assets eoeicm ae n te tm 804 before income taxes andotheritems omnsokodr 640 common stockholders as apercent ofinvested capital ered75,835 79,880 (five year annualized) Year-end Average—on adiluted basis (in thousands): 8.10 8.24 $ before accounting change before accounting change Stock appreciation plusreinvested dividends. Ratio ofearningsbefore interest andincome taxexpense to interest expense. Debt dividedby debt,stockholders’ equityandminorityinterests. Net earnings(loss), dividedby average total assets. Net earnings(loss), dividedby average stockholders’ equity. Earnings from continuing operations, asapercent ofsales. Earnings from continuing operations before income taxes andotheritems, asapercent ofsales. Our earningsfrom continuing operations exclude certain dispositionsadjacent to theMaytag acquisition. Restructuring charges were $61 millionin2007, $55millionin2006,$57 millionin2005,$15 in2004and$3million (4) (3) (1) (8) (9) (6) (7) (2) (5) 1,063 2007 34.5% 11.8% 18.1% 4.6% 4.7 3.3% 4.1% (7) 800$1,1 320$12,176 $ 13,220 $ 14,317 $ 18,080 $ .7$63 .2$6.03 $ 6.02 $ 6.30 $ 6.47 $ 3,865 $ 4,514 $ 4,763 $ 6,517 $ 8446,8 66468,931 66,604 67,880 78,484 3466,8 81568,407 68,125 65,682 73,416 6416,7 89270,082 68,902 68,272 76,471 3798318117,361 8,181 8,301 13,759 ,4 ,5 ,8 3,589 3,985 4,354 6,043 30 37 92 72.65 69.21 83.76 83.02 29 55 33 18.56 23.31 25.54 42.93 ,8 ,4 ,0 1,301 1,606 1,745 3,283 5317427868,178 7,826 7,442 15,311 ,9 4 ,6 1,134 1,160 745 1,798 ,5 ,1 ,8 2,456 2,583 2,511 3,157 0620 042003 2004 2005 2006 .561 .05.91 5.90 6.19 6.35 .761 .05.91 5.90 6.19 5.67 8 2 0 414 406 422 486 2 4 4 423 443 440 520 3 2 0 414 406 422 433 461. 1712.3 11.7 13.5 14.6 2 9 5 830 758 792 823 12 04 57 50.9% 45.7% 40.4% 41.2% 7 0 2 276 529 409 474 7 9 1 423 511 494 576 57 46 03 42.9% 30.3% 24.6% 15.7% .217 .21.36 1.72 1.72 1.72 3 1 1 94 116 116 130 (53)——— 1 9 1 652 616 597 619 .%1.%37 8.1% 3.7% 14.5% 4.9% .%55 .%6.8% 5.7% 5.5% 4.6% .%42 .%5.4% 4.7% 4.2% 3.4% .%51 .%5.9% 5.2% 5.1% 3.9% . . . 5.7 5.8 5.6 3.8 .%29 .%3.4% 3.1% 2.9% 2.7% . . . 1.1 1.1 1.1 1.1 2003. [email protected] E-mail: Fax: Telephone: Benton Harbor,MI Report onForm Whirlpool Corporation’sAnnual SHAREHOLDER ANDOTHER INFORMATION Sarbanes-Oxley Actof pursuant toSection FinancialOfficer Officer andChief Executive the Company’sChief The mostrecentcertificationsby Certifications 2000 Whirlpool Corporation Director, InvestorRelations Greg Fritz can beobtainedbycontacting: April, July,OctoberandFebruary– each quarter–typicallyissuedin Company earningsreleasesfor Factors” sectionoftheForm the factorsdiscussedin“Risk could differmateriallybecauseof uncertainties. Actualresults are subjecttorisksand expectations andassumptionsthat statements arebasedoncurrent forward-looking statements.These This AnnualReportcontains www.whirlpoolcorp.com. through theInternetat both ofwhichareavailable 2007 Financial Supplementtothe Proxy Statementandinthe Supplement totheCompany’s appears intheFinancial and Analysis.”Thisinformation and the“Management’sDiscussion Statements andrelatednotes, Company’s ConsolidatedFinancial should bereadtogetherwiththe contained inthisAnnualReport The FinancialSummary charge toshareholdersofrecord. information, isavailablefreeof Shareholders andotherfinancial recording oftheAnnualReportto Section York StockExchangepursuantto recent certificationtotheNew The ChiefExecutiveOfficer’smost Annual ReportonForm filed asexhibitstotheCompany’s submitted May Listed CompanyManualwas 269 Annual ReportonForm N. M- 303 - 923 A. 63 269 - 3525 , MailDrop 12 - 16 (a) oftheNYSE’s 10 923 , -K, acassettetape 2007 - 49022 302 2641 2002 . of the 10 2800 - 2692 -K. are 10 10 -K. -K, [email protected] E-mail: Telephone: Benton Harbor,MI 2000 Whirlpool Corporation Assistant Secretary Robert J.LaForest For additionalinformation,contact: www.computershare.com 201 TDD/TTY forhearingimpaired: 781 Outside theUnitedStates: Telephone: 8 Time), at reinvestment. purchases, salesand dividend brokerage commissions for transaction processingfeesand exiting theplan.Therearemodest shares heldintheprogramwithout dividends, andcansellpartofthe with orwithout reinvestingtheir to may makecashcontributionsofup $50 automatic bankaccountdebitsof for aminimumof their initialsharesthroughtheplan Non-shareholders maypurchase Whirlpool CommonStock. be thedirectownerofyourshares Stock PurchaseProgram,youcan DirectSERVICE Investmentand As aparticipantinthe Direct Stock Purchase Plan Providence, RI P.O. Box N.A. ShareholderServices Computershare TrustCompany, stock certificates,contact: transactions, dividendchecksor with individualstockrecords, For informationaboutorassistance and Corporate Secretary Dividend Disbursements Shareholder Records, Transfer Agent, April annual meetingisscheduledfor Whirlpool Corporation’snext Annual Meeting and Chicagostockexchanges. WHR) islistedontheNewYork Corporation (exchangesymbol: Whirlpool Common stockof Stock Exchanges th Floor,Chicago,IL. $250 - - 575 for fivemonths.Participants 222 N. M- 15 , - 000 - 2879 , 4955 2008 43069 120 63 annually, investeddaily, 269 877 East DelawarePlace, , MailDrop , at - 02940 - 923 453 8 $250 : 00 - - 49022 1504 5355 - a.m. (Central 3069 , orthrough 2200 - 2692 Common StockMarketPrice $0 2007 For eachquarterduring shares inJanuary February Common Stockpurchasedin Example: May © their respectivecompanies. Komen forTheCureareownedby Smartway TransportandSusanG. Humanity, iPod,OxiClean, STAR, FORTUNE,Habitatfor Cook forTheCure,ENERGY or majority-ownedaffiliates. Whirlpool Corporationoritswholly Whirlpool aretrademarksof SuperEco, Touch,VersaTopand of thestandmixer,Steamoption, Purafresh, Pure,Retro,Scents,Shape Maytag, PowerScour,ProTouch, December May December March Dividend History Stock-Split and All rightsreserved. KitchenAid, Laundry It’s Made,Gladiator,Jenn-Air,JOT, The LoveOfCooking,ForWay Consul, Duet,Eggo,Epic,Flex,For Centennial, centralpark,Club, Bauknecht, Brastemp,Bravos, affresh, Amana,Aquarela,Architect, Trademarks was the commonstockofWhirlpool number ofholdersrecord As ofFebruary 1 Plan Websitetoenroll. or visititsDirectStockPurchase For details,contactComputershare 2 3 4 4 1 3 2 Q Q Q Q Q Q Q 2008 Q . 06$96 $ 2006 2 06$89 $ 2006 2 06$94 $ 2006 2 43 06$90 $ 2006 2 0 0 0 0 14 1972 1965 , Whirlpoolpaidadividendof 0 0 0 0 per share. , 7 Whirlpool Corporation. 7 899 7 7 1952 : : 100 1952 $ $ $ $ . 1986 1954 : 1 1 ihLwClose Low High 9 9 1 1 8 6 6 4 shares ofWhirlpool ...... equaled 0 7 8 7 0$79 $ 00 4$74 $ 64 $80 68 2$78 $ 12 : : 15 9 7 9 0 , 2008 2008 $ $ $ $ 3 2 2 dividend 100% exchange 2 8 8 7 7 -for- -for- -for- -for- 4 2 2 3 1 ...... 4 . - 1 1 2 1 5$91 $ 75 7$84 $ 07 83 $ 80 2$82 $ 12 , the 2 5 0 7 , 1 800 2006 - stock 1 1 1 1 3 stock , Maré, $ $ $ $ 8 8 1 8 1 and 9 4 4 1 1 ...... 2 9 6 1 47 11 02 65 0 0 1 3

SHAREHOLDER AND OTHER INFORMATION P.123 BOARD OF DIRECTORS / EXECUTIVE COMMITTEE P.124 President, Whirlpool Europe Executive VicePresident and Marc Bitzer Global HumanResources Senior VicePresident, David A.Binkley ExecutiveOfficer Chief Chairman oftheBoardand M.Fettig Jeff Executive Committee Herman Cain( Board ofDirectors ahenJ.Hempel( Kathleen Whirlpool Corporation Chief ExecutiveOfficer, Chairman oftheBoardand M. Fettig Jeff GWP International Chief ExecutiveOfficer, President and Gary T.DiCamillo( President, THENewVoice,Inc. Chief ExecutiveOfficerand Michael F.Johnston( FinancialOfficer, Chief Former ViceChairmanand Visteon Corporation Chief ExecutiveOfficer, Chairman oftheBoardand Fort HowardCorporation 3 , 4 ) 1 , 2 2 3 , , ) 3 4 ) ) Whirlpool International President, Paulo F.M.Periquito Secretary General Counseland Senior VicePresident, Daniel F.Hopp Global StrategicSourcing Senior VicePresident, Mark E.Brown Chairman, ClarisCapitalPartners Capital Partners,L.L.P.and Partners, L.L.P.andThayer Partner, ArlingtonCapital Paul G.Stern( Fort JamesCorporation Chief ExecutiveOfficer, Former ChairmanoftheBoardand Miles L.Marsh( Kellogg Company Chief ExecutiveOfficer, Former ChairmanoftheBoardand Arnold G.Langbo( Meredith Corporation Chairman oftheBoard, William T.Kerr( 2 , 1 4 , 1 ) 4 , ) 4 1 , ) 3 ) Whirlpool NorthAmerica President, Michael A.Todman TechnologyOfficer Chief Executive VicePresidentand Michael D.Thieneman FinancialOfficer Chief Executive VicePresidentand Roy W.Templin ( ( ( ( PepsiCo, Inc. Vice Chairman, PepsiCo Internationaland Chief ExecutiveOfficer, Michael D.White( Whirlpool Corporation Whirlpool NorthAmerica, President, Michael A.Todman Communications Group,Inc. US WEST Former ExecutiveVicePresident, Janice D.Stoney( 2 1 4 3 AuditCommittee ) FinanceCommittee ) CorporateGovernanceand ) HumanResourcesCommittee ) Nominating Committee 2 , 1 3 , ) 4 ) .2 BOARD OF DIRECTORS /EXECUTIVE COMMITTEE P.124 SHAREHOLDERANDOTHER INFORMATION P.123 FIVE-YEAR SELECTEDFINANCIAL DATA P.122 REPORTS OFMANAGEMENT ANDINDEPENDENT REGISTERED CONSOLIDATED FINANCIAL STATEMENTSP.118 P.115 FINANCIAL SUMMARY P.108 OURRESULTS P.107 OURSENSEOFRESPONSIBILITY OURPEOPLE P.102 OURBRANDS OURCOMPANYP.96 FINANCIALHIGHLIGHTS P.10 CHAIRMAN’SLETTER P.8 P.7 P.1 Table ofContents PUBLIC ACCOUNTING FIRM

Design: SamataMason Principal Lifestyle Photography: Audra Melton CEO Portrait: Michael Abramson Printing: Lake County Press Cert no. SW-COC-1613 Telephone: 21025 Viale G. Borghi Europe Region Benton Harbor, MI 2000 North AmericaRegion World Headquarters and Whirlpool Corporation andGeneral Offices Telephone: N. M- N. Comerio (VA), Italy 63 39 269 - 0332 - 27 923 - - 49022 759 5000 - 111 - 2692 Telephone: Shanghai, PRC Pudong New Area Jingqiao Export Processing Zone 565 Asia Region Telephone: SP Brazil CEP 12 Av. dasNações Unidas, Latin AmericaRegion . 995 Jin GangRoad 04578 , 32° andar - 000 86 55 - - 11 21 201206 - São Paulo, - 3566 5133 - - 1000 1777 www.whirlpoolcorp.com data, isavailablefinancial at: Corporation, including Information aboutWhirlpool Internet Address 2007 Annual Report 2007

WHIRLPOOL MAYTAG KITCHENAID JENN-AIR AMANA BRASTEMP CONSUL BAUKNECHT GLADIATOR

WHIRLPOOL CORPORATION 2007 ANNUAL REPORT

WHIRLPOOL MAYTAG KITCHENAID JENN-AIR AMANA BRASTEMP CONSUL BAUKNECHT GLADIATOR