+AHM

SVP, Group Account Director, Honda Regional Marketing

Fern McCaffrey

+AHM

INCREASING

COMPETITION

+AHM

IMPORTANCE OF

THE BRAND &

DIFFERENTIATION

+AHM

RISK OF INCREASING

INCENTIVES & ADVERTISING

SPEND

+AHM

0

10

20

30

40

50

60

Jun

-201

2

Dec

-201

2

Jun

-201

3

Dec

-201

3

Jun

-201

4

Dec

-201

4

Jun

-201

5

Dec

-201

5

Jun

-201

6

Dec

-201

6

Honda

Toyota

Ford

Chevrolet

Nissan

Subaru

VW

Hyundai

Kia

Source: GfK

40+ Opinion Reflects

Market Leadership

40+ Top Box is a sign of excellence. This phenomenon

holds in the U.S. and other markets, is rarely sustained, and separates the leaders from the

also-rans

Consistent 40%+ Positive Opinion, Which Is A Reflection Of Brand Strength, May Allow Reduced Incentive And Advertising Spend% Excellent opinion

+AHM

0

10

20

30

40

50

60

Jun

-2

01

2

Dec

-2

01

2

Jun

-2

01

3

Dec

-2

01

3

Jun

-2

01

4

Dec

-2

01

4

Jun

-2

01

5

Dec

-2

01

5

Jun

-2

01

6

Dec

-2

01

6

Honda

Civic (+0.41)

Correlation

with Honda Opinion

Civic Launch Lifts Honda Brand Opinion Closer To 40%

Source: GfK

% Excellent opinion

+AHM

0

10

20

30

40

50

60

Jun

-2

01

2

Dec

-2

01

2

Jun

-2

01

3

Dec

-2

01

3

Jun

-2

01

4

Dec

-2

01

4

Jun

-2

01

5

Dec

-2

01

5

Jun

-2

01

6

Dec

-2

01

6

Honda

CR-V (+0.64)

CR-V Also Drives Honda Brand Positive Opinion

Correlation

with Honda Opinion

Source: GfK

% Excellent opinion

+AHM

0

10

20

30

40

50

60

Jun

-2

01

2

Dec

-2

01

2

Jun

-2

01

3

Dec

-2

01

3

Jun

-2

01

4

Dec

-2

01

4

Jun

-2

01

5

Dec

-2

01

5

Jun

-2

01

6

Dec

-2

01

6

Honda

Accord Sdn (-.02)

The Upcoming Accord Launch has the Potential to Push Honda into 40%+ Positive Opinion

Correlation

with Honda Opinion

Source: GfK

% Excellent opinion

+AHM

Along with Driving Brand Positive Opinion, Accord, Civic and CR-V Also Make Up ~75% of Sales

FIT CIVIC ACCORD CR-V ODYSSEY PILOT HR-V RIDGELINE CLARITY

+AHM

Civic Launch in Year Three

Civic Si launches in social, digital and print

“Racing at Heart”

Three initiatives designed to sustain Civic excitement

Type R launch continues driving excitement and interest in Civic

Motorsports strategy shifts to focus on Performance Motivated Buyers

+AHM

+AHM

Supplemental Periods Expanded to Help Support Civic Retail

SEPTEMBER

Accordand/or Civic

Supplemental Supplemental

OCTOBER

+AHM

Sustaining a Strong CR-V Launch

• Ongoing broadcast media support

• 24/7 digital in-market conquest and intender targeting

• Full suite of assets for you• Multicultural assets

• Competitive head-to-head TV

• Lease-taggable AWD spot and running footage reel

• Radio assets

• Digital ads

• Social media kits

• Direct and email marketing support

“A Lot of Reasons” Ad tested above norm Overall and on Information, Desire, Relevance and Persuasion.

“Proving Ground”AWD lease-taggable snow spot and running footage reel available.

Let’s keep the momentum going

+AHM

• Sell-down strategy is delivering results• May YOY sales increase

• June YOY sales increase

• Bucking segment trends

• Summer Clearance continues sell-down momentum• Dedicated spot

• Additional spot featuring Accord

• Supplemental periods continue in September and October

Accord Sell-Down Strategy is Paying Off

+AHM

Accord is Launching Amid Segment Decline

• Competition is fierce

• And the new Accord is designed to reinvigorate the segment

• Launch plans will be shared at the dealer meeting in August

+AHM

Camry is Launching Before, During and After Accord Launch

• But this is not a new dynamic

• Accord continues to be the retail dominator

• And is consistently the more upscale choice

• It’s critical that all tiers work together for the greatest possible impact - we are stronger together

And likely spending significantly more

+AHM

2017

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

Sales Event

Launch Sustain Sustain

LaunchSell Down

SupplementalSell Down

Supplemental

Sales Event Sales Event

MMC Launch

Six-Month Marketing Calendar

Accord

Civic

Odyssey

Fit

Civic Si Civic Type R

SupplementalSupplemental

+AHM

VP, Digital Management Supervisor

Adam Levitt

+AHM

Advertising Tools and Assets

+AHM

+AHM

+AHM

HRM DAA Website Program

+AHM

✓ Fully Translated into Spanish

+AHM

✓ Conquesting Pages

+AHM

Coming this year:

✓ Mobile optimizations

✓ Promo library within DAA management tool

✓ CPO landing page, inventory search

HRM DAA Website Program

+AHM

HRM DAA Website Program

Low$100/mo

fee

$2,500 one-time

sign-up fee

Maintenance free

Sales events, offers, model info

Only clicks out to your dealer sites

+AHM

+AHM

Automatic Social SharingCampaign Customization

+AHM

Summerbration – Social Assets

Facebook & Instagram carousel-formatted images on AdBuilder

Snapchat GeofilterProgram

Vertical video content available

+AHM

+AHM

Honda Sensing :15

Exclusive features :30

Longform ~2 mins

vs Sienna :15

vs Pacifica :15

Magic Slide :15

Vertical :10

General Market

& Spanish

+AHM

Show Fit demo longform

130

+AHM

Six Thousand One Hundred and Fifty Eight Assets on AdBuilder

+AHM

Associate Media Director

Felicia Lau

+AHM

Honda Successes in Digital

INVESTMENT GROWTH:

32% Digital of Total Media Mix

Driven by:• Consumption behaviors• Digital influence on shopping• KPIs & performance

ADDRESSABILITY & PERSONALIZATION:

22% Growth in Programmatic

24% Growth in Addressable TV

+AHM

Honda Successes in Digital

INNOVATION:

+AHM

Honda Successes in Digital

MEASUREMENT ADVANCEMENTS:

Online to Offline SalesImpact to Dealer Traffic

+AHM

STEWARDSHIP IS CRITICAL

+AHM

Analytics and Optimization

MEASUREMENT PLAN

KPIsMedia DeliveryBehavioral SearchesShopping ActionsSite TrafficEngagement

Optimization rulesCadence: bi-weekly, monthly

+AHM

Brand Safety

• Human monitoring, content review

• Constant updates to content guidelines

• Do Not Buy lists

• Monitoring and Prevention Technologies:

+AHM

Addressing Advertising Fraud

$7.4 billion estimated effects of ad fraud in U.S. in 2016

- Forrester Research, March 2017

• Technologies in place to detect and block our impressions from being served to “non-humans”

• Study conducted by:

AHM scored 2x better than study average

• Projected impact of using ad fraud protection

• More Mobile, Direct or PMP deals

1.6%Use

13.2%Don’t

+AHM

Financial Transparency

• Programmatic transactions are complex

• Non-working media costs/fees as high as 35-50%+ of total costs

• Study conducted by:Media & Data

80%

Fees20%

PROGRAMMATICPUBLISHER COST BREAKOUT

+AHM

DAA Applications

Test, learn, evolve

Invest in the right tools and technologies

Know where your dollars are going

+AHM

Associate Media Director

Leah Tran

+AHM

Auto Queries Est. to Grow >10%

QUERY GROWTH

COST-PER-CLICK

12%

10%

22%

12%

English Spanish

Source: Google Internal Data (FY18 estimate)

+AHM

Tier 1 Facilitates Dealership Actions

Visits Calls Directions

1.5MM 55K 11.4K

APR 2016 – MAR 2017

Source: AHM Paid Search Data (Apr 2016-Mar 2017)

+AHM

12%

92%

Clic

k sh

are

HondaTiers 1, 2, 3

Endemic / Competitors

Honda Tier 1, 2 & 3 Gained 670K Clicks

lease honda civic2014

2017

T1

T3

T2

88%

8%

Source: Google Internal Click Share Data (2014 JFM & 2017 JFM); 670k estimated based on AHM Paid Search data

+AHM

Conquesting Support

Comparison pages available through HRM DAA Website Program

+AHM

Remarketing & eCRM Targeting

lease honda civic

REMARKETING eCRM

Partners: Partners:

Example Lists

• Requested a quote online• Former Honda owners• Owners off-lease 6 mos.

DAAWebsite

Example Lists

• All site visitors• Completed Find A Dealer• Viewed Current Offers

+AHM

Multicultural Search

Carros Toyota

40%more efficient Conquesting cost-per-click thanGeneral Market

Source: AHM Paid Search Data (FY17)

+AHM

DAA Recommendation

Keyword Coordination with Dealerships

Remarketing

Hispanic Search

Investment aligns with market growth

+AHM

DAA Recommendation: Camry Launch

DEFEND THE BRAND GEO-TARGETING

Search & Digital:

• Search: Honda Accord & Dealership terms• Digital: Auto-endemic sites