Honda / JCI Relationship Summary

Global Relationship Summary

96-00 00 - 03 03 - now 96-00 00 - 03 03 - now 96-00 00 - 03 03 - now

Japan

Asia Pacific ------ ------ ------ ------ ------ ------ ------ ------

North America

Europe ------ ------ ------

Overall

Purchasing Engineering Plant

X X

X XX

X

X

XX

Honda / JCI Quality Summary

Quality Index

268

88 10756 74

157106

2997

050

100150200250300

Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05

Plant 2

Target P2 = 109

Units to Repair

40

1723

12 12 1118

9 5

01020304050

Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05

Plant 2

Target P2 = 24

FY 2004Index Point Trend Chart

Honda CBU Seating

333

227

125

454

230 232 217

413

118

292 307

179146

128

211

307

127 12297

68

-

100

200

300

400

500

FY'03 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG FY'04AVE

FY'04Goal

`

FY 2004RPPM Trend Chart

Honda CBU Seating

8023

224

200

145

6445 51

34 3044

1680

50

100

150

200

250

FY'03 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG FY'04AVE

FY'04Goal

Supplier Award 2004 received for an outstanding contribution to

HUM in QUALITY

HUM QIS Analysis

0

2

4

6

8

10

12

14

16

Nov-02

Dec-02

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

Jan-04

Feb-04

Mar-04

Apr-04

May-04

Jun-04

Jul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

Jan-05

Feb-05

Mar-05

QIS

Sco

re

79-81ki trend

’05 Laun

ch

HUM

HCM

0. 00

2. 00

4. 00

6. 00

8. 00

10. 00

12. 00

M on t hs in S er vice

2003 0. 29 0. 93 2. 60 4. 40 6. 29 7. 85 8. 85 9. 36 9. 63 9. 68

2004 0. 22 0. 48 1. 10 1. 55 1. 77 1. 80

2005 0. 00 0. 00 0. 00

MI S-1 MI S-3 MI S-6 MI S-9 MI S-12 MI S-15 MI S-18 MI S-21 MI S-24 MI S-27 MI S-30 MI S-33 MI S-36

Warranty Trend Seat Device‘03

‘04‘05

Warranty

December ’04 Overall Comments: ‘Best performance by all measurables! Keep up the good work.’…HCM Quality

Honda / JCI Purchasing Summary

Global Purchasing Summary

XX

Sea

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Doo

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Flo

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Ele

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# of Quotes

# of Aw ards Products Aw arded

05 Fit 1 1 005 Odyssey 1 3 3 7 3 OHC, HL, Compass

05.5 Ridgeline 1 3 1 1 3 9 3 OHC, HL, Floor Console

06 Civic 1 3 1 3 8 1 Floor Console

06.5 RDX 1 3 4 8 3 OHC, HL, HFL

07 CR-V 1 3 2 6 2 Sunvisor, OHC

07 MD-X 1 3 1 4 9 3 OHC, HL, HFL

# of Quotes 6 19 1 3 19 48 15

# of Awards 0 6 0 2 7 31% Aw ard Rate, but

0 Seat business

80ki 81ki

NA 10.0M 11.7M

UK 4.6M 4.0M

Total 14.6M 15.7M

Honda / JCI Engineering Summary

Mfg Engineering Design Change Overall MY Program Support Location Responsibility Prototypes Drawings Management Testing Development

05 RL Hands-Free-Link Jpn HGT JCI

05 Pilot / MD-X Trim Optimization NA HRA-O JCI

05.5 Ridgeline Center Console NA HRA-O JCI

05.5 Ridgeline Overhead Console NA HRA-O JCI

06 EU Hands-Free-Link Jpn, EU HGT JCI

06 Civic Center Console Global HGT JCI

07 MD-X (DJ) 3rd Row Seat NA HRA-O JCI / Tachi-S

07 MD-X Hands-Free-Link NA HRA-O JCI

08 Accord Seat Device Global HGT JCI ---------------------- Under Development ----------------------

---------------------- Under Development ----------------------

---------------------- Under Development ----------------------

Comments

First telematics development w ith HGT.

JCI recommended changes to gakushin specif ication and material placement for improved quality.

JCI f irst center console for Honda, including several late design changes to the program.

Common design w ith '03 Accord

Adding 5 EU languages to system.

First Global program aw ard.

JCI aw arded design responsibility for 3rd row from Tachi-S/Honda utilizing CPP technology.

Adding PBA, enhanced VR to system.

Participating in design competition utilizing JCI CPP technology.

Global Engineering Summary

Honda / JCI Business Summary

96 - 99 Models 00 - 05 Models 06 - 09 ModelsPrior Models Current Models New Models

MY Seat

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Sales MY Seat

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Accord 98 - O O O - - O - O - - $ 47M 03 - O O O - - - - O - - $ 47M 08 - T T T - T - - T - TOdyssey 99 O O O O - - - - O - - $144M 05 - - - O - - - - O O - $ 6M 11 - - - - - - - - - - -Civic 96 - - O - - - O - - - - $ 3M 01 - - - - - - - - - - - 0 06 T* - - - T* - - - - - -CR-V 99 O - - - - - - - - - - $ 14M 02 O - O O - - O - - - - $125M 07 - - T T - - - - - - - ($120M)Fit / Stream / Jazz - - - - - - - - - - - 0 02 - - - - - - - - - - - 0 08 - - - - - - - - - - -Legend / RL 99 - - O - - - - - O - - $ 2M 04 - - - O - - - - O - O $ 4M 10 - - - - - - - - - - -EU Accord / TSX - - - - - - - - - - - 0 04 - - - O - - - - O - O $ 7M 09 - - - - - - - - - - -New Acura RDX - - - - - - - - - - - 0 - - - - - - - - - - - - 0 06.5 - - - O - - - - O - OMD-X - - - - - - - - - - - 0 01 O O O O - - - - O O O $188M 07 - - - O - - - - O - O (185M)Pilot - - - - - - - - - - - 0 03 O O O O - - - - O - - $345M 08.5 T T T T T T T T T T TRidgeline - - - - - - - - - - - 0 05.5 - - - O O - - - O - - $ 5M 11 - - - - - - - - - - -Element - - - - - - - - - - - 0 03 - - O - - - - - - - - $ 2M 09 - - - - - - - - - - -TL 99 - O O O - - - - O - - $ 23M 04 - - - O - - - - O - O $ 15M 99 - - - - - - - - - - -CL 98.5 - O O O - - - - O - - $ 11M - - - - - - - - - - - - 0 - - - - - - - - - - - -

$244M $744M ($305M)JCI Europe BusinessLost Business from Previous modelTargeted Programs

O

HG

T D

evel

oped

Current % MixSeating 72%

Seat Device 8%Sunvisor 5%

Headliners 1%Overhead Console 3%Instrument Panel 0

Door Panels 0Floor Console 5%Electronics 6%

Reduction in BusinessFlat / No BusinessGrowing Business

Product Direction

Current % MixNorth America 81%

Europe 17%Japan 2%

Thailand 0%Brazil 0%

Malaysia 0%China 0%Taiwan 0%India 0%

Reduction in BusinessFlat / No BusinessGrowing Business

Region Direction

Business Summary

• With current sourcing direction, JCI sales with Honda will have gone from:

’98/’99: $244M

’04/’05: $800M

’06/’07: $150M

• With the current sourcing direction, JCI direct seating business is gone after ’07 model year.

22% yr/yr increase in business

52% yr/yr reduction in business

Honda / JCI Seating Business Analysis

TST Tachi-S JCI JCI-JV TST Tachi-S JCI JCI-JV

68% 32% Japan 65% 35%45% 32% 23% NA 53% 47%

100% China 95% 5%100% Thailand 100%100% Taiwan 100%100% Phillipines 100%100% India 100%100% Indonesia 100%100% Pakistan 100%

100% Malaysia 100%100% Turkey 100%40% 60% UK 60% 40%

100% Brazil 100%100% Mexico 100%

Global Volume Assumption: 3.2M vehicles Global Volume Assumption: 3.7M vehicles

2003 2007 Global Seating Marketshare Maker Layout Decisions

Program M/L

04 Acura TL Setex04 Edic Tachi-S05 Jpn Odyssey TSTech05 US Odyssey TSTech05 Legend / RL TSTech05.5 RidgeRunner TSTech06 Civic TSTech06 Step Wagon Tachi-S06.5 New Acura CUV TSTech07 Jpn / NA CR-V TSTech07 Acura MD-X Setex

07 UK / China CR-V ------08 Accord WB ------08 Accord NB ------

'03 '07TSTech 61% 66%

$1300M $1450M

Tachi-S 14% 13%380M $400M

JCI JV 8% 19%$360M $1100M

JCI Direct 17% 0%$730M $0M

Honda Global Marketshare (by volume)

JCI Seating Summary

• Significant investment in Seating has been made by JCI to-date. Further investment in Japan engineering including GE (’05).

• However, with the current direction, direct seating business is gone after ’07.

• UK sustainability is difficult based on investment versus volume mix for 2 suppliers. JCI infrastructure for EU market is strong.

• Based on an increasing volume plan, China opportunities still exist for a 2nd seating supplier.

• Japan opportunities?

• 3rd Power Track supplier added (Tachi-S, FKK) reducing JCI business further.

• Joint effort moving forward…

Total JCI Investment $ spent (in $M)

Launch 3 3 4 6 6 8 7 37Capital 4 9 2 7 3 17 1 43

Engineering 6 8 13 16 14 12 16 85Yr 99 00 01 02 03 04 05 165

Seating Investment: $115M in Honda