Empire Southwest 2017 Companywide EOS Results

Response Rate Survey administered from April 17- May 5th. Employees 1586 Responses 1411 Empire 89% Dealer Average Highest 99% In previous years we received 1st, 2nd, 3rd, etc. ranking. Starting in 2017 the focus will be on quartile ranking. We are at 85% engagement with 89% of the company participating. It’s a great result that we can all be proud of. Poor Below Average Average Good Excellent <50% 55 – 76% 77 – 82% 83 – 87% >88%

Benchmarking- North America INDEX % Favorable Overall Dealer Average N America Average Highest Score Top Quartile 50th Percentile Engagement 85% 74% 78% 87% 82% 80% Leadership 73% 76% 84% 77% Executive Management 66% 71% 83% Safety 92% 88% 94% 89% Values 86% Learning & Development 67% 69% 70% Communications Customer Focus Collaboration 58% 57% 81% 68% Recognition 60% 64% Green = improvement 2pts. or higher Red = decrease 2pts. or higher

Benchmarking- North America INDEX % Favorable Overall Dealer Average N America Average Highest Score Top Quartile 50th Percentile Accountable for Results 82% 79% 91% 77% Career Advancement 68% 62% 63% 64% Change 78% 70% 74% 87% 75% Continuous Improvement 72% High Performance 83% 86% 81% Inclusion 67% 71% Wellness/Health 92% Workgroup Effectiveness 73% 85% Strategy & Execution 80% 89% Yellow = new index

3-Year Trend This slide shows Empire’s 3-year trend. Results have remained fairly consistent showing that we remain strong in Safety, Customer Focus and Values. We continue to have opportunities in the areas of Collaboration, Recognition, and Communication.

Empire vs. CAT Global Results The slide shows how Empire (red line) compares to other dealers that participate in the survey.

High Performance Priorities INDEX QUESTION 2017 % AGREE 2016 % AGREE Executive Management Actions by Executive Management show genuine interest in the well-being of employees. 75% 73% Change This company is making the changes necessary to compete effectively. 78% 80% Recognition I feel appreciated at work. 71% The Executive Management of our company has clearly communicated a vision of the future that motivates me. 74% 76% Inclusion In our organization decisions and/or actions show we are committed to attracting, developing and retaining a diverse work force. This company recognizes outstanding contributions. 68% 69% I feel supported in my efforts to adapt to organizational changes. My ideas and suggestions count. 72% I have confidence that Executive Management is making decisions that will ensure our company's long term success. 84% 82% I have the same opportunity to succeed as others with similar experiences, performance and educational background. When we talk about priorities, the most important thing is for you to understand what is important to your team. Let me repeat that…. However, we want you see what priorities are for Empire employees overall. Priorities are shown in order of importance to the company’s employees. Executive Management – It is very important to Empire employees to understand the direction of top leadership. Employee confidence in decisions being made shows significant impact on engagement. Here’s how you can kill two birds with one stone… Pick one thing to move forward that is on your team’s priority list. No matter what maintain or enhance our engagement if we focus on personal growth, building networks and aligning employee individual contributions with the company critical success factors. Examples: Personal growth – Sue needs to learn excel to build spreadsheets for new hire survey analysis. Building network – “One Empire” too broad. Think of relationships that would add the most value to your work outside of your immediate workgroup. Alignment of individual contributions to critical success factors - Ex. Management- TQ Inclusion- 50th Recognition- TQ Change-TQ

ACKNOWLDGE what we have done well: improved Safety results, Dealer Loyalty rating, and individual and team contributions made despite the challenges. Here’s how we want to move forward… Having made positive progress in the last year, we want to recognize our strengths and what we have done well.

ALIGN individual priorities to critical success factors… Personal growth for new and tenured employees Build our networks: build relationships for mutual benefit with colleagues, clients and Suppliers/Partners Align daily work of employees to the Vision Triangle and mission critical items in your deparment: Employee motivation and satisfaction is nearly impossible to generate if employees don’t understand—and CARE ABOUT---how their jobs contribute to the greater good of the organization, and to the good of the Empire’s clients.   Look for ways in which we can continue to maintain and enhance our employee engagement and the success of Empire. To do so, we must focus on the priorities...what is meaningful to you and build more momentum for the future. That means: Personal growth… getting better at who we are and how we contribute Expanding mutually beneficial relationships inside and outside of our department Last but not least, we all want to be on point with what is important for Empire and our department. You and I want to be very clear about how we contribute and recognize that everything we do counts.

ACTION Choose our high priority initiatives that can impact our department and create value.

Whereto from Here Determine what we want to do as a team to enhance our engagement Incorporate our individual and team initiatives into upcoming EPAs to recognize successes Because Empire aspires to Be the Best, individual and team efforts will start becoming a part of EPA discussions. Your thoughts shared in this meeting will be use to determine our priorities and how to move forward.

2017 Employee Opinion Survey