Automobile KPI (Interim Version 1.0)
As of June 10, 2010

No.

KPI

Research anddevelopment cost for1
next generation
technologies

Number of new models
2 of eco cars and theirsales performance

Description
To understand the competitiveness ofnext generation sustainable energy
technologies

KPI formula
Total cost of development of next generation
technologies out of research and development
cost for the current year

Practice Example
Sample Business Case: ABC company

Number of new models of eco cars and theirsales performance

Sample Business Case: ABC company
Number ofnew models

To understand a company's
achievement of regulations regarding
environmental risk reduction.
Rate for qualifying lowemissions vehicles

Average gas mileage
4 (by major types ofvehicles)(Number of low and ultra low emission vehicles /Sales volume)×100
Ex.
Super Ultra Low Emission Vehicle (SULEV) isa U.S. classification for conventionally
powered or gasoline-electric hybrid vehicle
designed to produce minimal air pollution attheir point of use, typically 90% less than thatof an equivalent ordinary full gasoline vehicle.

To understand a company's research
Average gas mileage (km/ℓ)
and development (R&D) capability andtechnical strength

USEurope

Super Ultra Low Emission Vehicle (SULEV) /Ultra Low Emission Vehicle (ULEV)
Tier2/LEV2
Euro4/Euro5

6

Capital expenditures (byregion)

Number of sales and7 manufacturing bases (byregion)

8Vehicle production andsales (by region)

Number of implemented cases / Total cases =Implementation ratio for top 10 items

Number of patents
applied for328

Number of patents
held
1,461

Number of patents
obtained in current year(156)

Sample Business Case:

Capital expenditures (JPY: millions)
100,000

To understand a company's value chain Number of business and manufacturing bases by Sample Business Case: ABC company
development and also to analyze theregion
efficiency of sales by region etc.
JapanManufacturing bases
Sales bases

Provided once a year Sales
according to the fiscal
term.

It shows the company's efforts todevelop eco vehicles and its actual
achievement.

Provided once a year Noneaccording to the fiscal
term.

It shows a company's technicalsrength and ability to cope withregulation changes.

Provided once a year Noneaccording to the fiscalterm.

We can see the running efficiency byvehicle types.

North America

3978

3886

Europe22,453

Asia
1345

OthersProvided once a year (Future) sales,
It shows a company's research andaccording to the fiscal Research anddevelopment (R&D) capability.
term.
development costs

Provided once a year Capital
according to the fiscal expenditures,
term.
Depreciation,(Future) sales

It is useful to plan a company's
regional strategy and to assess its
strategic fit .

Provided once a year Sales
according to the fiscalterm.

It shows global business deployment.

5978To understand the global
competitivenessProduction and sales volume of vehicles for each Sample Business Case: ABC company
business type (4 wheels/2 wheels vehicles) byBusinessRegion
Production
Rateregion
4 wheelsJapan
1,200,000
0.3

Provided once a year Sales
according to the fiscal
term.

It is useful to plan a company's
regional strategy and to assess its
strategic fit .

To understand a company's market
share by region

Market share (sales volume) by region

Provided once a year Sales
according to the fiscal
term.

It shows a company's regional
positioning and its competitiveness.

Provided once a year (Future) businessaccording to the fiscal profitterm.

It shows a company's risk
management for foreign currencychange in future.

Sample Business Case: ABC company (passenger cars)

Total sales volume
in a market
Japan
6,717
×××
North America

9 Market share (by region)

10 Local production rate

Average gas mileage
8.4 km/ℓ

Region
North America

It enables users to predict futurecompetitiveness by making clear thecompany's efforts, behaviors andstrategies to develop newtechnologies.

××.×××.×

Sample Business Case: ABC company

Year 2009Provided once a year Research andaccording to the fiscal development
term.
costs,(Future) sales

96.2

Sample Business Case: ABC company

Number of patents
applied for and obtained

To understand a company's
manufacturing capability in the future

Year 2009(%)

Regulation

Sedan
To understand a company's current
Number of patent applications / patents obtained
technical strength and innovative power at the end of period

5JapanMerit/NeedNumber of sales (y/y)
5,500,000 (+85%)

Sample Business Case: ABC company

Country

Relation withFinancials

3

New models of eco cars

Sales performance of eco cars

3

Amount of capital investment(JPY: millions)
12,000Areas
R&D for next generation technologies

To understand the development
capability of eco cars which areimportant vehicle models of acompany's environmental strategies

Application Date

To understand a company's risk
management for foreign currencychange© 2010 WICI Japan all rights reserved.

Local production volume / Total volume

Year-to-year rise
(%)
＋1.7
××

Sample Business Case: ABC company

Local production rate

North America
45%

Sales
Market sharevolume(%)
678
10.1
×××××

No.

KPI

11 Local content rate

12Rate of ISO approvals
obtained in supply chain

Description

Practice Example

It shows the cost competitiveness by
global distributed factories ofmanufacturing enterprises.

To understand if a company maintains
a specific level of quality across thevalue chain

Number of suppliers who obtain ISO approvals /Total number of suppliers

Provided once a year Noneaccording to the fiscalterm.

We can evaluate a company's quality
management and pro-environmental
behavior.

Provided once a year (Future) sales
according to the fiscalterm.

It provides objective information toassess customer satisfaction.

Provided once a year (Future) sales
according to the fiscal
term.

It shows the marketing strategy andbrand value of a company.

Provided once a year Warranty reserve
according to the fiscal
term.

It shows a company's efforts to ensure
safety for not only consumers but also
information users.

Provided once a year Sales
according to the fiscal
term.

It shows a company'scompetitiveness.

Provided once a year Manufacturingaccording to the fiscal costs,term.
(Future) capital
expenditures

It provides the evidence of acompany's object and plan of its
production or sales.

Provided once a year Sales
according to the fiscalterm.

It provides data to measure quantityand quality of human resources.

Sample Business Case: ABC company

ISO9000 approvals
obtained rate (%)
Rate of suppliers who
obtain ISO approvals

To understand the index of a company's Independent brand rankings etc.
brand value

Sales volume of flagship vehicles and its amount Sample Business Case: ABC company

To understand a company'sperformance level

Production capacity and operating ratio

Car brands○○○
×××□□□To understand a company's technicalstrength and development capability.
Number of winning
20awards© 2010 WICI Japan all rights reserved.

Production capacityof vehicles
Head plants
678○○ plants
348
×× plants
278

Capacityutilization (%)
108
102
98

Sample Business Case: ABC company

RegionJapanU.S.
Asia

Number ofAverage length ofemployees
service (years)
435,997
×××
×××
204,759
299,952
×××

Sample Business Case: ABC company

MinivanNumber of winning awards from the third partyand external evaluation institute

Sales amount (JPY: millions)
×××
×××
×××Main plants

North America

This year's Advertising expenditures and selling,general, and administrative expenses broken
down into vehicle types

Number of recalled vehicles
1,638
35,593459
Number of recalls: 3Sample Business Case: ABC company

Japan

To understand the dispersion degree of Number of group companies' regular employees
a company's human resources as well and their average years of service
as level of skills, loyalty, and businessconventions

632
603

Rank 2009
1

Sales volume435,997
304,759
299,952

RegionProduction capacity by17region

5-Date of the notification5/24/2009
9/2/2009
10/12/2009

To understand a company's brandvalue indirectly
Sales of flagship type of16vehicles

PointsSample Business Case: ABC company

Car brands○○○×××□□□

Number of recalls and15
recalled vehicles

Rank

Sample Business Case: ABC company
Nikkei brand value ranking

To understand a company's brand
Advertising expenditures value indirectly
and selling, general, and19
administrative expenses(by vehicle types)

85

Independent customer satisfaction rankings such Sample Business Case: ABC company
as J.D. Power etc can be used. It isJ.D. Power Asia pacific Japan
recommended to select one which is categorized
vehicle sales customer
by initial quality, sales, service and so on.
satisfaction research

To understand a company's preventive Number of recalls and recalled vehicles
risk management

Number of employees
18 and average years ofservice by region

Merit/Need

Provided once a year Manufacturingaccording to the fiscal costs,term.
(Future) businessprofitCustomer satisfaction
degreeIndependent brandresearch and rankings

Relation withFinancials(Local raw materials - other raw materials) / Total Sample Business Case: ABC company
raw materials
North America
Local content rate
63.5%

Year 200×Industry average

14

Application Date

To understand a company's risk
management for foreign currencychangeTo understand the condition of theclient's assets
13

KPI formula

Advertising expenditures and selling, general,and administrative expenses (JPY: Millions)
30,000Sample Business Case: ABC companyRegion
JapanU.S.
Europe2000-2004
2005-2009△△ award winning○○ award winning-Provided once a year Selling, general,
It measures the effect of the marketing
according to the fiscal and administrative strategy by vehicle types.
term.
expenses,(Future) sales
Provided once a year Noneaccording to the fiscal
term.

It provides the evidence thatdifferentiated products are accepted inthe market.

No.

KPI

Number of retiree's
21 reemployment andreemployment rates

Description
To understand a company's value ofintellectual assets based on
reemployees' technical experiences

KPI formula
Reemployees / Retirees

Ex)※1：(loading time – down time) / loading time(=operating time - non-operating time)※2：(Ideal Cycle Time × Actual Amount
Produced) / Available Time (=loading time - nonoperating time)

Overall Equipment
Efficiency

23 First-pass rate

Sample Business Case: ABC company

2009
To understand the market readiness for Availability Ratio※1 x Performance Ratio※2 xa company to shorten the lead time
Quality Ratio

22Practice Example

Number of reemployees Reemployment rate (%)
145
10

Sample Business Case: ABC company

2009
Overall Equipment Efficiency(OEE)

Sample Business Case: ABC company

To understand a company's capacity to Emissions = Activity data x Emissions factor
address environmental issues

Sample Business Case: ABC company

24 Carbon emissions© 2010 WICI Japan all rights reserved.

Carbon emissions

Relation withFinancials

Merit/Need

Provided once a year Noneaccording to the fiscal
term.

It shows the progress of technicalsuccession to the next generation
employees.

Provided once a year Manufacturingaccording to the fiscal costs
term.

It simply shows a company's
productivity and quality in production
process.

Provided once a year Manufacturingaccording to the fiscal coststerm.

It shows the efficiency of production
line.

Provided once a year Noneaccording to the fiscalterm.

It shows a company's efforts to curb
global warming .

86.5%

To understand the market readiness for A measure of what percentage of products werea company to provide vehicles of stable produced right the first time without off-line
quality in the process
rework.

First-pass rate

Application Date

2009
99%

Year 2009
2.3158 million tons of CO2