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1 EMPLOYEE ENGAGEMENT

2 Distinction for a Future Age At American Honda Motor Co., Inc., we believe in staying at the forefront of innovation. Whether it be advancing the technology of our vehicles or redefining the customer experience, Honda has a passion for elevating our standards of excellence. That passion is reflected in the enhancements made to the 2014 President s Award program. The President s Award has long been a symbol of excellence for our top Honda dealerships. And while we believe in preserving the history of the award, we also know that it, too, must advance into the future. Many exciting changes are coming to the program this year, but the purpose remains the same to honor Honda s best dealerships with the prestigious President s Award. In 2014, an elevated level of distinction will recognize dealerships that not only achieve excellence in all criteria but are also ranked among the top 10 dealerships in new-vehicle sales volume. The President s Award Elite moniker will be awarded to celebrate remarkable achievements in sales, as well as maintaining exacting levels of customer excellence. Embrace this opportunity to see your dealership recognized for its passion for excellence. The prestigious President s Award awaits all who succeed.

3 Making the Connection In today s market, it s all about connections. Through social media, people are discussing every aspect of their lives and building networks that far exceed the reach of traditional advertising or word of mouth. You have an opportunity to make a positive impression and build a connection with every customer interaction. When you focus on providing an exceptional customer experience, your customers will have a positive impression of you and the dealership. The 2014 President s Award criteria have been redesigned to focus on your dealership s connections with customers. The stronger the initial relationships, the more likely they will continue through service visits and achieve brand loyalty, resulting in repeat sales when customers are in the market again.

4 A Symbol of Pure Excellence Honda is taking excellence to new heights, and the all-new Honda President s Award trophy reflects that direction. This modern, sleek design is a symbol of the forward evolution at Honda. Its singular structure signifies the unity of Honda as one premier brand. Our strength comes from having a solid foundation. The gradual incline of the trophy represents our journey and the narrowing of focus on achieving excellence. There s no point at the top of the award, because we will never reach an end to our quest for excellence. And the clarity of the crystal is a reflection of the clear vision it takes to guide our brand and dealerships to ever-higher standards.

5 Requirements for a Winning Dealership President s Award Criteria To qualify for the 2014 President s Award, your dealership must achieve all the following criteria: Profitability Dealership must be profitable as of the November 2014 financial statement. Sales* Dealership must achieve one of the following sales criteria: n Criterion 1 Achieve a minimum of 100 percent of the dealership s newvehicle sales (NVS) objective or sales objective indexed to the zone as of January 2, 2015, and achieve a YTD retail sales effectiveness (RSE) that is average or above average (zero or positive deviation from average) as of October 31, n Criterion 2 Achieve a YTD retail sales effectiveness (RSE) of 30 or higher as of October 31, Vehicle Condition Index (VCI) Dealership must achieve a minimum YTD score of 97, with a minimum of 90 percent valid phone numbers submitted, as of December 31, Customer Service Experience (CSE) E-Survey Dealership must achieve a minimum YTD score of 91 as of December 31, Service Retention Dealership must be average or above average (zero or positive deviation from average) as of November 30, Brand Representation (Image-Approved) Dealership must be Image- Approved, as determined unanimously by the zone management team, as of December 31, Standards are based on Honda s new image evaluation process introduced in the fall of Qualification Categories President s Award winner Dealership must achieve all program criteria. President s Award Elite winner Dealership must achieve all program criteria and rank among the top 10 dealerships in new-vehicle sales. Complete details can be found in the HPN-091 Marketing Bulletin. *Sales objectives, including annual and periodic objectives for challenges, contests, and awards, may be based on a Honda dealership s prior sales history or other factors independent of the opportunity available in the Honda dealership s resident ASA. Therefore, annual and periodic sales objectives may be set at levels less than or greater than the levels required for the Honda dealership to meet its sales performance obligations under the Honda Automobile Dealer Sales and Service Agreement (DSSA), as more fully explained in American Honda Motor Company s Dealer Sales Performance Evaluation Policy. The Honda dealership s sales versus annual or periodic objectives for challenges, contests, and awards is not determinative of the Honda dealership s sales performance under the DSSA.