0. 2010 Health Educator’s Institute Honda of America, Mfg., Inc.
Kevin Decot, Senior Staff Administrator — Wellness Team Manager
Oct 13, 2010

1. Our Founder- Mr. Honda Soichiro Honda
(1906 – 1991)
Born in Komyo Village (now Tenryu City), Iwata County, Shizuoka Prefecture, Japan
Founded Honda Motor Company
Established first overseas subsidiary, in Los Angeles
Inducted into Automotive Hall of Fame
Our company was founded in 1948 by an innovative young man named Soichiro Honda, who had a passion for always improving the products he developed.
In 1946, in post-war Japan, Mr. Honda began a humble business by mounting surplus engines onto bicycles. He soon learned that those engines were not reliable. So, in 1946 he established the Honda Technical Research Institute to engineer and produce small, high-quality 2-cylinder motorbike engines. Based on customer acceptance of those first products, Honda Motor Company was founded two years later.
Photos: (top left) Mr. Honda as a young man. (lower left) Mr. Honda in motorcycle manufacturing plant.
(center) Mr. & Mrs. Honda at the Automotive Hall of Fame Induction in 1989.
(far right) Mr. Honda visiting Honda of America Mfg. in 1989. 1

2. Company Philosophy Basic Principles Company Principle
Respect for the individual and The Three Joys
Company Principle
Maintaining a global viewpoint, we are dedicated to providing products of the highest quality, yet at a reasonable price
for worldwide customer satisfaction.
Management Policies
Proceed always with ambition and youthfulness.
Respect sound theory, develop fresh ideas and make the most effective use of time
Enjoy your work and encourage open communication
Strive constantly for a harmonious flow of work
Be ever mindful of the value of research and endeavor
The fundamental beliefs of Honda Motor Company are expressed through the Basic Principles, Company Principles and Management Policies.
Basic Principles:
Respect For The Individual comes from a fundamental belief in the uniqueness of the human being, and the contributions of each associate in our company have created our success.
Because of our belief in the value of each individual, it is our goal to provide a sense of joy to those who buy, sell, and create our products and services.
Company Principle:
Mr. Honda developed the company principle in 1956 as a philosophy to guide the company. All company business decisions made today trace back to this company principle.
Management Policies:
Honda established five management policies to guide associates in the performance of their daily responsibilities. These management policies help all associates put the shared company philosophy and principle into practice.
Proceed always with ambition and youthfulness. Seek out challenge with a fresh, open-minded passion for learning.
Respect sound theory, develop fresh ideas, and make the most effective use of time. Challenge old habits with fresh ideas based on sound theory. Approach tasks efficiently and productively.
Enjoy your work, and encourage open communication. Take pride in your work and strive for a feeling of accomplishment.
Strive constantly for a harmonious flow of work. Consider all other associates as customers and strive to create teamwork.
Be ever mindful of the value of research and endeavor. We should always see improvement and never be satisfied with “what is.” 2

3. Mr. Honda’s Personal Philosophy
“Action without philosophy is a lethal weapon. Philosophy without action is worthless.”
Soichiro Honda 3

4. Honda is a “Mobility” Company
In many ways, Honda considers itself a “mobility company”
Honda is most often associated with the automotive and motorcycle divisions of its business. Some are surprised to learn that the company produces power products, such as personal watercraft and snow throwers; home-use cogeneration units; and even has entered the solar cell business. The company is also preparing to manufacture aircraft engines and the HondaJet
Honda’s continuing innovations in mobility include robotics to assist with human services and renewable energy sources to ensure an energy infrastructure for our future. 4

5. Honda of America Mfg., Inc.
East Liberty Auto Plant
Marysville Auto Plant
CR-V
Element
Accord Crosstour
Anna Engine Plant
Accord Sedan
Accord Coupe
Honda of America refers to these four plants: Marysville Motorcycle Plant (MMP); Marysville Auto Plant (MAP); Anna Engine Plant (AEP) and East Liberty Auto Plant (ELP).
Honda of America Manufacturing began operations by producing motorcycles in 1979, with auto production starting in 1982 at the Marysville Auto Plant, which today has the capacity to produce 440,000 vehicles annually. It currently produces the Accord 4-door; Accord 2-door; Acura TL; and, Acura RDX.
In 1985, Honda of America began producing engines in Ohio at the Anna Engine Plant. This plant now has capacity to build 1.18 million engines annually and is Honda’s largest auto engine plant in the world. In addition to engines, this facility produces brake and suspension components, and nearly all of the steel parts for those engines.
A second automobile plant began production in December, 1989 in East Liberty, Ohio, where the CR-V and Element now are in production. East Liberty has the capacity to build 240,000 vehicles annually.
Acura TL
Acura RDX
6-Cylinder
Total number of associates= 10,115
Total number of spouses= 7,411
Total Covered Lives= 30,615
4-Cylinder
Drive shaft, brakes

6. Laughter is Great Medicine!
“The red circles are your red blood cells. The white circles are your white blood cells. The brown circles are donuts. We need to talk.”
Laughter is Great Medicine!

7. Integrated Strategy Desired Outcome (ROI) …Sustainability
Health Care Plan Design
Destination Wellness
Workforce Stability
Instill consumerism through an account-based health care plan design using a health reimbursement account
Establish a culture and mindset of wellness through integrated programs, with participation determining health care plan eligibility (“Active” or “Passive”)
Strengthen daily workforce availability through policy and program modifications
Desired Outcome (ROI)
Strengthen Competitiveness
…Sustainability
Organization
Employment
Benefits
Leverage Existing Commitment (90+) 7

8. Health Care Plan Design8

9. After health fund is used
Plan Design
Each Associate’s Health Plan Features are Determined by Their Level of Participation in the Program
*Implemented in Apr 2007
Annual Health Fund (Health Reimbursement Account)
Amount based on single/family status and wellness participation
Active associate receives $1K/3K
Passive associate receives $500/$1,500
After health fund is used
PWA
Completion
(HRA)
Wellness
Engagement +
= Active Healthcare Plan
No PWA
(No HRA)
Non-Wellness
and or
= Passive Healthcare Plan
Deductible
Amount based on single/family status
Active associate: $250/$625
Passive associate: $375/$940
After deductible
Out-of- Pocket
Associate pays 10% of cost until out-of-pocket (OOP) max
Active associate: $1,000/$2,750
Passive associate:$1,500/$4,125 9

10. Any balance remaining in health fund can be carried over to next year
Plan Design Key Points
Any balance remaining in health fund can be carried over to next year
At retirement, remaining balance in health fund can be used as post retirement medical credits
All preventive care is paid 100% & is not deducted from health fund account
Prescription drug co-pays are not included in health fund 10

11. Associate Medical Cost Sharing
Associates currently pay no premium cost 11

12. Destination Wellness 12

13. Wellness Initiative Business Drivers
Aging Workforce
Double Digit Medical Inflation
Diet & Lifestyle of children are accelerating healthcare issues
New drugs, more drugs = Increased utilization potential
Lack of Consumerism
Inappropriate Healthcare Utilization
Wellness Initiative Business Drivers
Business Drivers for Wellness
Supportive Environment
Awareness
Behavior (Cultural)
change
Life
Style
Change
Wellness Model $ + 13

14. Traditional Healthcare System Strategy Characteristics
Strategy Blueprint
Lack of engagement Group
Catastrophic illness Group
-HAM should support them
Healthy Group OK
Focus on this Group!!
Covered Life $
Focal Point
Medical Cost
Engage
Manage
Maintain
Proactive
Care of Health System
Reactive
Traditional Healthcare System
o o
Paradigm Shift
Strategy Philosophy
Strategy Characteristics
…Voluntary Involvement
…Sustainability
…Cost Sharing
HAM- 2020
…No premiums
…Utilization based impact
…Catastrophic protection
Mindset Change
…Integrated
Cost of Healthcare 1
Participation
Utilization 2
Drivers
Lack of Consumerism 3 14

15. Focus on Production Characteristics
Genba Support
Focus on Production Characteristics
ELP
MAP
AEP 15

16. Injury Recovery Activities
Genba Support Summary
<Reactive>
Inclusion of stretching & strengthening
activities to the Early Intervention Program (EIP)
Injury Recovery Activities
Incident Investigations w/ nurses
Conditioning for associates in Active & Post Medical Programs
Injury Prevention Activities
Collaborate w/Mfg Safety to analyze
Plant specific issues
Expand Work Hardening (beyond)
frame assembly
<Proactive>
Job demand analysis (JDA)
Conditioning for high physical stress
Processes and/or limited rotations areas
<Proactive>
Promote Safety Awareness activities
Associate Education Activities
Collaborate w/Dept. Safety to
develop team specific trainings
Develop dept. specific stretching programs
<Proactive>
Wellness Promotion Activities
Collaborate w/Admin to analyze Plant specific Health Promotion opportunities
Promote DW events & activities throughout plants
Develop a DW representative Network
Create an “Associate-Centric” model at the Genba to promote health and wellness of associates, reduce injuries and improve workforce stability. 16

17. Work Hardening ROI Proposition / Example
PAST HISTORY
PATH FORWARD
1. Training Format
Time
1-3 mos
4-10 mos
11-36 mos
37> mos
Before After
2. Program Components
Incident rate high in first 90 days (from 2006 & 2007 data)
Sprains & Strains CTD = 80% Ttl incidents
54%
How to best provide our Associates with the necessary tools for success
Sprains & Strains
26%
CTW
New Assoc placed on hard jobs
No f/up after initial placement
Little training on job process
Little technique or reinforcement
3. Program Results +
68% Reduction in New Associate Safety Incidents  First 90 days after placement (FY2006 / FY2008)
Cost Avoidance = $2,900,000
Physically unprepared for work environment 17

18. Enhanced Conditioning Program Selection Process
Selection Criteria:
Mfg/Dept request (restricted associates and/or limited rotations)
Physician request (plan of care)
Current RTW participant (TWA participants)
ECP Outline:
2-3 days/week 8 week program
Pre & post assessment
Conditioning Process Overview 18

19. Components of Enhanced Conditioning Program
* Help increase endurance and strengthen the heart
* Help elongate the muscle and improve Range Of Motion (ROI)
Flexibility
* Increase abdominal & low back strength in order to help stabilize/protect the spine & torso region.
* Increase overall body strength through gradual overload on musculoskeletal system
Cardiovascular
Core
Resistance 19

20. Genba Enhanced Conditioning Program Room20

21. ECP Results for Marysville Auto Pilot
*Associate A= 7% Positive Decrease
*Associate B= 15% Positive Decrease
*Associate A= No Change
*Associate B= 1% Positive Change
*Associate A= 18% Positive Change in Systolic
13% Positive Change in Dystolic
*Associate B= 5% Positive Change in Systolic
*Associate A= 14% Positive Decrease
*Associate B= 21% Positive Decrease 21

22. ECP Results for Marysville Auto Pilot
*Associate A= 3% Positive Increase
*Associate B= 32% Positive Increase
*Associate A= 36% Positive Change
*Associate B= 100% Positive Change
*Associate A= 18% Positive Decrease
*Associate B= 19% Positive Decrease
<ECP Pilot Results>
Flexibility Average improvement of 18% in Hamstring & Shoulder Flex
Cardiovascular Average improvement of 11% in resting heart rate
Core Strength Average improvement of 68% 22

23. Targeted Programs 23

24. Wellness Culture Transformation Overview
Component
83Ki
2006
84Ki
2007
85Ki
2008
86Ki
2009
87Ki
2010
88Ki
2011
89Ki
2012
Characteristic (Culture)
Stages
Educate
Aware
Preparation
Contemplate
Begin Engagement
Core
Actions
Assoc
Spouse
Introduce Wellness as
Priority & Destination Culture
Wellness Culture is Embraced
Wellness is Everyone’s Responsibility
Tactical
Strategic
Paradigm
Change
Strengthen Engagement
Action
Commitment
Intrinsic Motivation
Targeted Programming
PWA
Assoc
PWA – Get Acquainted
PWA - Baseline
PWA - Update
PWA - Update
PWA - Update
PWA - Update
PWA - Update
Spouse
PWA - Baseline
PWA - Update
PWA - Update
PWA - Update
PWA - Update
PWA - Update
Maintain
Passports to Wellness Activities
Passports to Wellness
PWA
Maintain
Passports to Wellness Activities
PWA
Wellness Model
Passports Menu
*Motivate individual engagement in the care of their health
Fitness
Education &
Awareness
Awareness
Supportive
Environ.
Life
Style
Change
Preventive Care
Behavior (Cultural)
change
PWA
Passports Categories 24

25. Education 25

26. Fitness 26

27. <Passports to Wellness Summary>
Preventive
39 Total Activities
<Passports to Wellness Summary>
Education= 20 activities offered at wellness centers and/or e-based
Preventive= 8 various medical exams/screenings (including blood draw)
Fitness= 10 activities through wellness centers and 1 e-based 27

28. Targeted Programs Image
Financial Fitness
Community Outreach
Farmers Market
Lunch & Learns
“Community” Gardens
Live Fit Education Series
Wellness Speaker Series
Community-based Behavioral Counselors
Urgent Care
Services
Diet/Nutrition Programs
Relaxation Programs
Exercise Program Change 28

29. Communication/Marketing29

30. Communication & Awareness Highlights
Initiative
Accomplishments
Communication SAP
Strategic action plan for communication developed and implemented per fiscal year
Targeted Messaging
Thematic approach
Wellness Website
Deployment of Destination Wellness website for associates and family members
Portal to Health Mgt Ctr
On-line resource for health and wellness information
New Hire Orientation
Wellness component added to each new hire orientation
Associate accountability
Health/Wellness resources
Destination Wellness
Newsletter
Quarterly Destination Wellness newsletter mailed to associates
Peer Testimonials
Program Information (requirements)
“Health Dividend” 30

31. Communication/Marketing Strategy
HNN- HAM Internal CCTV
Announce Events and Health/Wellness Info
Destination Wellness
Representatives
Share information with
dept./team members
Communication
&
Marketing
Destination Wellness
Web-site
Portal to web-based resources
“What’s New section” (advertising)
Food Service Info
Financial News
Posters/Flyers
Announce Events and Key
Information 31

32. Workforce Stability 32

33. Workforce Stability Initiatives$
Medical Management Programs
Early Intervention Program (massage therapy)
Modified Work Program
Occ therapy on-site
Urgent care services on-site
Change minimum attendance standard from 98%99%
Policy Changes
*Wellness team members directly collaborating with Manufacturing and Medical on line side investigations, ego training, early intervention programs, etc.
Leadership/Associate Training
Behavior based training
Process/Design Improvements
Implement Ergo guidelines for R&D
Top “10” Ergo Processes
Manufacturing Innovation (e.g. adjustable workstations) 33

34. ROI- How are we doing? 34

35. Wellness ROI Components
Indirect Cost
-Workforce Stability
Direct Cost
-Medical Claim Cost
-Workers’ Comp Cost
ROI
Utilization of Healthcare
-Consumerism (Plan usage)
Health Risk
-Cost Association
-Engagement
Verifiable Metrics for Measuring
Value of Destination Wellness 35

36. Summary of Workforce Stability Initiatives
Item
Desired Outcome
Result
Trending
LOA
Reduction in (occ and non-occ) leaves
Workers’ Comp
Reduction in workers’ comp claims 36

37. HAM Medical Cost Trending
*Began Active/Passive Healthcare Fund 37

38. Destination Wellness Participation Trend
=Leading Industry
Level
Over 15,000 associates and spouses qualified for the Active Healthcare plan in 2011
Summary data shows positive improvement in key health metrics such as total cholesterol, glucose and blood pressure
Participation in preventive healthcare is increasing 38

39. 2009 VS 2007 Associate Biometric Data
Considering all the variables that may occur when gathering biometrics, 2009 overall data appears to show a healthier trend for HAM associates.
2009
Look at statin scripts to see increase.
2007 39

40. 2009 VS 2007 Spouse Biometric Data
Overall trending for HAM spouses seems to be healthier with regard to biometric data
2009
155
Check red
2007 40

41. HAM’s Cost for Health Risks: 2007-2009
Members with 1 *Chronic illness consistently cost almost 3X more per month than non-chronic
*Note: Chronic defined as DX of Asthma, Diabetes, COPD, CHF and CAD
$950
$850
$845
$283
$296
$301
DW Strategies to Positively Impact:
Risk Reduction
Disease Mgt (Health Dialog)
Passports to Wellness
Wellness Center Education Programs
Health Mgt Ctr Modules
Hypnotherapy
Members with high blood pressure cost 2X more per month than those with normal blood pressure
$656
$700
$657
DW Strategies to Positively Impact:
Risk Reduction
Passports to Wellness
Healthy Food Initiative
Health Mgt Ctr Modules
Hypnotherapy
$266
$285
$290
There appears to be a correlation between risk and claims dollars in the case of Chronic Illness and Hypertension 41

42. HAM’s Cost for Health Risks: 2007-2009
Associates who don’t exercise cost HAM 3-4X more per month than heavy exercisers
$1181
$999
$1146
DW Strategies to Positively Impact:
Risk Reduction
Passports to Wellness
LIVE IT 365+
Health Mgt Ctr Module
Initiating/Maintaining the Courage
Biggest Loser
$376
$389
$405
$269
$274
$306
Associates who don’t cope well with stress cost HAM almost twice as much.
$648
$639
$628
$350
DW Strategies to Positively Impact:
Risk Reduction
Passports to Wellness
Healthy Food Initiative
Health Mgt Ctr Modules- Stress and Emotional Health
Hypnotherapy
$367
$372
There appears to be a correlation between risk and claims dollars in the case of Exercise and Coping with Stress 42

43. From the Core Metrics, DW built the initial Targeted Strategies
Core metrics are indices developed to monitor specific areas of healthcare representative of DW’s goals.
From the Core Metrics, DW built the initial Targeted Strategies 43

44. Utilization Trends: 2005 – 2009 Health Checks: Health Screens: Metric
Desired Outcome
Result
Trending
Health Checks:
Baby Well Checks
Child Well Checks
Adult Well Checks
Child Immunizations
Dental Exams
Eye Exams
Health Screens:
Pap Smear
Mammogram
PSA
Colorectal Screening
Fact: Participation in preventive health screenings is trending upward. This is a positive behavioral change for HAM.
Health Checks
Health Screens 44

45. Core Metrics Scorecard Appropriate Utilization of Healthcare45

46. Readiness to Change
The shift from “planning to” to “action” has begun in the HAM population (engagement)
“Action”
“Action”
“Plan To”
“Plan To”
“Action”
“Action”
“Plan To”
“Plan To” 46

47. Destination Wellness Summary
Current
Accelerated
Ideal
Mitigated
Health Risk Continuum
Health Risks X
Low
Medium
High
Wellness
HAM’s Responsibility
Benefit Component
Everyone’s Responsibility
Human Capital Component
Paradigm
Change
Traditional
Model
Genba Stability
Culture
Wellness
Investment
Health & Productivity
Manpower
Stability
Right Parts….Right Person, Healthy Person
Spend Money on Care of Health
Spend Money on Healthcare Rx
Chronic Disease
Labor Cost
Expense
HR Issue
Organizational Issue 47

48. Develop long-term image (5-10 years) Assemble team with PASSION
Closing Thoughts
Develop long-term image (5-10 years)
Assemble team with PASSION
ID Wellness Champions as agents of change
Communicate-Market: What’s in it for me?
Embrace setbacks and forge ahead
Establish baseline and measure against yearly
Remember…Culture will eat strategy for breakfast every day! 48

49. Thank
You 49