### APPENDIX 5C. THE LOW-VOLUME MANUFACTURER TABLE OF CONTENTS
5C.1 INTRODUCTION ...................................................................................................5C-1 5C.2 SEGMENT REVENUES.........................................................................................5C-1 5C.3 SHIPMENT VOLUMES .........................................................................................5C-4

LIST OF TABLES Table 5C.2.1 Reported LVM Revenue by Product Line ...................................................5C-1 Table 5C.2.2 Reported LVM Revenue by Market Segment ($MM).................................5C-2 Table 5C.2.3 Stated LVM Revenue by Product and Market Segment ($MM) .................5C-2 Table 5C.2.4 Disaggregated LVM Wa sher Revenues ($MM) ..........................................5C-3 Table 5C.2.5 LVM Product Importance and Segment Revenues ($MM) .........................5C-3 Table 5C.3.1 DOE Estimate of LVM Clothes Washer Unit Shipments (2006) ................5C-5

LIST OF FIGURE Figure 5C.2.2 LVM Clothes W a sher Revenue ($MM) by End-User and Drum Orientation in 2006 ......................................................................................5C-4

5C-i

### APPENDIX 5C. THE LO W-VOLUME MANUFACTURER

5C.1 INTRODUCTION The purpose of this appendix is to clarif y how DOE made its estimates regarding the shipment volumes and the importance of the co mmercial clothes washer business to the low volume manufacturer (LVM). To make its es timates, DOE relied on statements made by the LVM in its audited annual reports filed withthe Securities and Exch ange Commission (SEC) which were supplemented with statements to DOE. From 2002 to 2005, the annual reports broke out the approximate revenue that each LVM product line generated. In its annual reports, the LVM also stated the revenues by end-user market segment, residential and commercial. The LVM recorded no residential revenues from 1999 to 2004 due to a non-compete agreement. In 2004, the non-compete agreement expired and residential sales recommenced.

5C.2 SEGMENT REVENUES Table 5C.2.1 details DOE’s analysis of reported revenues for the LVM disaggregated by product type and market segment as a percentage of total revenue.

Table 5C.2.1 Reported LVM Revenue by Product Line

Category Year 2002 2003 2004 2005 2006 Washer Extractors 26% 25% 24% 25% 24% Top Load Washers 17% 17% 16% 14% 15% Front Load Washers 5% 4% 5% 6% 6% All Washers 48% 46% 45% 45% 45% Tumbler Dryers 21% 22% 22% 23% 23% Standard Dryers 11% 11% 11% 11% 11% All Dryers 32% 33% 33% 34% 34% Presses + Finishing 3% 3% 3% 2% 2% Service Parts 14% 14% 14% 13% 13% Value-Added Services 3% 2% 2% 3% 2% Other - Sourced Product 0% 2% 3% 3% 4% Othe r 20% 21% 22% 21% 21%
Total 100% 100% 100% 100% 100% 

### The LVM also listed commercial, residential, and service parts revenue for every year from 2002 to 2006, as shown in Table 5C.2.2. “Other” revenues refer to revenues from transactions due to an acquisiti on that the LVM completed in 2006.

5C-1

### Table 5C.2.2 Reported LVM Revenue by Market Segment ($MM)
Year 2002 2003 2004 2005 2006 Residential Revenue $0.0 $0.0 $3.6 $8.5 $14.4 Commercial Revenue 220.1 230.7 239.2 268.3 282.9 Service Parts $35.5 $36.9 $38.2 $40.5 $45.7 Othe r $0.0 $0.0 $0.0 $0.0 $23.1 Total Annual Revenue $255.6 $267.6 $281.0 $317.3 $366.1



### DOE subsequently overlaid the tables lis ting revenue by product category and revenue by market segment in to disaggregate the revenueby market segment and product line, shown below in Table 5C.2.3. The LVM subsequently reviewed and corrected the DOE estimates.

Table 5C.2.3 Stated LVM Revenue by Product and Market Segment ($MM)

Category Year 2002 2003 2004 2005 2006 Residential Sales Revenue Top-Load Washers $0.0 $0.0 $1.5 $4.4 $8.7 Front-Load Washers $0.0 $0.0 $0.8 $0.9 $0.6 Standard Dryers $0.0 $0.0 $1.3 $3.2 $5.1 Sub-Total $0.0 $0.0 $3.6 $8.5 $14.4
Commercial Sales Revenue Top-Load Washers $43.3 $45.8 $42.9 $41.5 $42.8 Front-Load Washers $11.8 $12.1 $14.2 $15.1 $19.2 Standard Dryers $29.3 $31.1 $29.3 $30.3 $30.7 Sub-Total $84.4 $89.0 $86.4 $86.9 $92.7
Attributable Service Parts Revenue $12.1 $12.6 $12.5 $12.6 $14.5 Total Washer + Dryer + Parts Revenue $96.5 $101.6 $102.5 $108.0 $121.6
Total LVM Business $255.6 $267.6 $281.0 $317.3 $366.1 Washer + Dryer + Parts Revenue % 37.8% 38.0% 36.5% 34.0% 33.2% 

### Table 5C.2.3 illustrates how important the clothe s washer plus dryer business is estimated to be for the LVM. The percentage of total revenue represented by the washer and dryer market has shrunk from 38% in 2002 but still represents about a third of its total revenues in 2006. Thus, this product category remains very important to the LVM. The balance of revenue comes primarily from high-capacity comm ercial laundry equipment. Standard dryer sales are usually bundled with clothes washer sales, hence their inclusion in the above analysis. Besides providing revenue, the clothes wash er and standard dryer sales give the LVM scale to help purchase p arts, raw materials, and to help amortize equipment and tooling investments. If standard dryers and their estimated parts revenues were to be removed from Table 5C.2.3, the importance of the washer business remains evident in Table 5C.2.4.

5C-2

### Table 5C.2.4 Disaggregated LVM Washer Revenues ($MM) Category Year 2002 2003 2004 2005 2006 Residential Sales Top-Load Washers $0.0 $0.0 $1.5 $4.4 $8.7 Front-Load Washers $0.0 $0.0 $0.8 $0.9 $0.6 Sub-Total $0.0 $0.0 $2.3 $5.3 $9.3
Commercial Sales Top-Load Washers $43.3 $45.8 $42.9 $41.5 $42.8 Front-Load Washers $11.8 $12.1 $14.2 $15.1 $19.2 Sub-Total $55.1 $57.9 $57.1 $56.6 $62.0
Attributable Service Parts $7.9 $8.2 $8.3 $8.2 $9.7
Total Washer + Parts Revenue $63.0 $66.1 $67.7 $70.1 $81.0
Total LVM Revenues $255.6 $267.6 $281.0 $317.3 $366.1 Washer + Parts Revenue % 24.6% 24.7% 24.1% 22.1% 22.1% 

### While the revenue of the clothes washer busin ess has been declining as a percentage of overall sales from 25 percent in 2002 to an estimated 22 percent in 2006, the clothes washer business remains a substantial business unit for the LVM. Ta ble 5C.2.5 lists the relative importance of washer platforms and market segments to the LVM.

Table 5C.2.5 LVM Product Importance and Segment Revenues ($MM)
Year 2002 2003 2004 2005 2006 Revenue Percentage by Top Loader 78.6% 79.1% 74.7% 74.2% 72.2% Washer Type Front Loader 21.4% 20.9% 25.3% 25.8% 27.8% Residential Re v enue Percentage by End- 0.0% 0.0% 3.9% 8.6% 13.0% Market Commercial 100.0% 100.0% 96.1% 91.4% 87.0% 

### Although the revenues of front-loading clothes washers have increased, top-loading commercial clothes washers continue to represent the majority of sales. Figure 5C.2.2 details the product and market segment data estimates for the LVM in 2006.

5C-3Commercial Parts Residential TopSal es, $8.4, 10%

Sa Loader, $8.7, 11% Residential FrontLoader, $0.6, 1% Residential Parts les, $1.26, 2%

Commercial Front

Loader, $19.2, 24%

Commercial TopLoader, $42.8, 52% 

### Figure 5C.2.2 LVM Clothes Washer Revenue ($MM) by End-User and Drum Orientation in 2006 The potential impact of an energy efficiency standard that eliminates vertical-axis commercial clothes washers could thus be quite significant. Justthe commercial vertical-axis business represents over 52 percent of total clothe s washer plus parts sale s and about 12 percent of total LVM revenues. Acc ounting for the bundled parts and dryer sales increases the importance of the commercial clothes washer sales further.

5C.3 SHIPMENT VOLUME S While annual reports from subsequent years show significant growth in the residential market segment, commercial sales are still significantly higher. Based on the pricing survey (Table 3.11.2 and Figure 3.11.1 of this TSD) and the published clothes washer markups (Table 8.2.42of this TSD), DOE made the following shipme nt estimates for this m anufacturer as of 2006.

5C-4

### Table 5C.3.1 DOE Estimate of LVM Clothes Washer Unit Shipments (2006)

Market Segment Drum Axis 2006 Re v enues

($MM) End User Cl othe s Washer Cost * Total Cl othe s Washer Markup** Mfgr. Markup Shipment Vo lu me by Sales Channel

Residential Co m mercial Top-Loader F r ont-Loader Top-Loader Front-Loader $42.8 / $19.2 / $8.7 / $0.6 / $824.00 x $1,355.00 x

$697.00 x $1,332.00 x $1.93 / $1.23 = $1.93 / $1.23 = $1.93 / $1.23 = $1.93 / $1.23 = 81,502 22,234 19,586

707 Total Mfg Volume (units) 124,028 * See Chapter 3 of the TSD ** See Chapter 8 of the TSD 

### Shipments Assumptions

• End-user prices depend on the presence of a coin box. Further,

– Commercial units require a coin box; and

– Residential units do no t require a coin box.

5C-5