Equity (Describe what the brand stands for, or aims to, that makes it distinct)

1. Current State • Market: • United States • “The Pursuit of Perfection”: • A philosophy of continuously improving the engineering process, the automotive result and service delivery. • A shared belief with the target in the manner in which they pursue their goals. Like us, they are never done. • Key competitor: • BMW: Based on prestige/sales volume • Mercedes: Based on prestige alone • Target Audience: demographics • Primary: • Adults 30-54, HHI $100K+ • Secondary: • Super Affluents, HHI $300K+ • OR $1 million+ in investible assets Character Brand Values: Intelligence. Precision. Advancement. People. The Ongoing Pursuit. Brand Personality: Confident. Intelligent. Progressive. Stylish. Provocative. Building Blocks that support Equity Target Audience: insights, psychographics Discerning Affluents: Luxury consumers who both know and appreciate meaningful brand and product differences. They are interesting and interested, live their lives confidently and are leaders – or influencers - in their peer set. They like to stay ahead. Whereas the pure status seeker is content merely to flash the badges to which they belong, the Discerning Affluent likes to know the stories – the marvels, the wonderments – behind the choices they make. They place a high value on substance alongside of style. Equity (Describe what the brand stands for, or aims to, that makes it distinct) • Product strengths/functional attributes: • Innovative technologies. • Examples include adaptive front lighting systems (headlights that rotate up to fifteen degrees), advanced air filtration systems, pre-collision safety system, smart access technology, hybrid engines, etc. • Consumer benefits: • Individually, each advancement offers a meaningful consumer end benefit. For example, rotating headlights that help drivers to see what’s around the bend before they get to the bend. • Collectively, Lexus’ advancements align with our target’s self-identify. We pursue perfection like the target pursues their life: with a constant drive towards improvement. They are never done. COMMUNICATIONS ARCHITECTURE

2. Potential Future State No. 1 • Market: • United States • Champion the spirit of “Progressive Change”: • Create a new kind of heritage rooted in shaping the future. > “The European brands will read from the pages of existing history while Lexus will continually write the new pages of history.” • > “Looking backward will never lead you to creating the world’s first 8-speed A/T.” • Key competitor: • BMW: Based on prestige/sales volume • Mercedes: Based on prestige alone • Target Audience: demographics • Primary: • Adults 30-54, HHI $100K+ • Secondary: • Super Affluents, HHI $300K+ • OR $1 million+ in investible assets Character Brand Values: People. Ingenuity. Progress. Simplicity. The Pursuit of Perfection. Brand Personality: Inspired. Ingenious. Modern. Stylish. Audacious. Building Blocks that support Equity Target Audience: insights, psychographics Affluentials (influential affluents): Traditionally, power has been political or financial, rooted in authority or money – the capacity to make things happen or to keep them from happening. Influence, by contrast, is soft power – the ability to shift the course of events through ideas or relationships rather than coercion or enticement. Affluentials include gatekeeprs, opinion-shapers, star-makers and paradigm-sifters. Some are household names, but a greater number aren’t. They fly under the radar. What all of them have in common is that they are changing the world, pushing it in new directions, shaping its economy and culture as profoundly as the old high-and-mighty ever did. Equity (Describe what the brand stands for, or aims to, that makes it distinct) • Product strengths/functional attributes: • Advancements in technology and thinking. • Examples include hybrid engines that can outperform conventional engines, sensors that can read and respond to changes in body heat temperature, technology that can enable an automobile to virtually park itself, pre-crash technology that can help to predict and respond to an impending accident before it happens, etc. • Consumer benefits: • Individually, each advancement offers a useful improvement to the driving experience. Not progress for progress sake, but change that makes the drive simpler, faster, safer, etc. • Collectively, Lexus’ advancements align with our target’s desire to impact meaningful change in the world. The key benefit is in being emotionally connected with a brand that is pursuing the same (or similar) end result; a shared philosophy. COMMUNICATIONS ARCHITECTURE

3. Potential Future State No. 2 • Market: • United States • “Putting People at the Center of our Universe”: • A philosophy of building cars, and designing experiences, around the target’s specific wants and needs. • > “Whereas some build for the sake of engineering, and others for the sake of prestige, Lexus builds around human beings.” • > “The more we know about people, the more we know about cars.” • Key competitor: • BMW: Based on prestige/sales volume • Mercedes: Based on prestige alone • Target Audience: demographics • Primary: • Adults 30-54, HHI $100K+ • Secondary: • Super Affluents, HHI $300K+ • OR $1 million+ in investible assets Character Brand Values: The individual. Self-expression. Knowledge. Relevancy. The Pursuit of Perfection. Brand Personality: Confident. Insightful. Engaging. Expressive. Artful. Building Blocks that support Equity Target Audience: insights, psychographics Discerning Affluents: Luxury consumers who both know and appreciate real brand and product differences. They are interesting and interested, live their lives confidently and are leaders – or influencers - in their peer set. Whereas the pure status seeker is content merely to flash the badges to which they belong, the Discerning Affluent likes to know the stories – the marvels, the wonderments – behind the choices they make. They place a high value on substance alongside of style; they appreciate products and services that attend to their wants and needs. Equity (Describe what the brand stands for, or aims to, that makes it distinct) Product strengths/functional attributes: Intuitive technologies. Examples include intuitive climate control, voice activated NAV, VDIM (vehicle dynamic integrated management system), ASL ( automatic sound levelizer), an array of sensors that read and adjust to changing environmental situations, intelligent park assist, etc. • Consumer benefits: • Individually, each bit of intuitive technology offers a unique emotional benefit. For example, intelligent park assist gives the driver added confidence in a parallel parking situation. Other features delight, fascinate and energize. • Collectively, Lexus’ intuitive technologies anticipate the driver’s wants/needs leaving them feeling important – the center of our universe – and completely taken care of (cared for). COMMUNICATIONS ARCHITECTURE

4. Potential Future State No. 3 • Market: • United States • Celebrate “Ingenious Simplicity”: • Japanese heritage, Lexus’ heritage, is rooted in making things better/making things simpler. • Ingenious simplicity is a brand truth, a relevant motivator for the target, and a differentiator in the luxury auto category. • > “What the German engineers will achieve in two parts, we know the Japanese engineers can achieve in one part.” • Key competitor: • BMW: Based on prestige/sales volume • Mercedes: Based on prestige alone • Target Audience: demographics • Primary: • Adults 30-54, HHI $100K+ • Secondary: • Super Affluents, HHI $300K+ • OR $1 million+ in investible assets Character Brand Values: Simplicity. Form and Function. Innovation. Engineering. The Pursuit of Perfection. Brand Personality: Ingenious. Creative. Cool. Modern. Tasteful. Building Blocks that support Equity Target Audience: insights, psychographics Discerning Affluents: Luxury consumers who both know and appreciate real brand and product differences. They are interesting and interested, live their lives confidently and are leaders – or influencers - in their peer set. Whereas the pure status seeker is content merely to flash the badges to which they belong, the Discerning Affluent likes to know the stories – the marvels, the wonderments – behind the choices they make. They place a high value on substance alongside of style; they appreciate products and services that make their lives simpler. Equity (Describe what the brand stands for, or aims to, that makes it distinct) Product strengths/functional attributes: Intuitive technologies. Examples include intuitive climate control, voice activated NAV, VDIM (vehicle dynamic integrated management system), ASL ( automatic sound levelizer), an array of sensors that read and adjust to changing conditions, intelligent park assist, smart access key, etc. Consumer benefits: Individually, each piece of intuitive technology helps to simplify the steps involved in achieving an ideal driving experience. Smart access, for example, allows the driver to open, start and drive their car without having to ever reach for a key. Collectively, Lexus’ intuitive , really ingenious, features align with the target’s desire to adopt technologies that help to make life simpler. So, Lexus shares their same pursuit. COMMUNICATIONS ARCHITECTURE

5. Potential Future State No. 4 • Market: • United States • Reveal Lexus to be iconic for “Unconventional Wisdom”: • Position against the notion of Lexus being the “smart” brand, and re-position as the “unconventionally wise” brand. • Establish a tradition for having changed, and continuing to change, the way the auto category acts and behaves. • Celebrate the brand’s pioneering spirit. • Key competitor: • BMW: Based on prestige/sales volume • Mercedes: Based on prestige alone • Target Audience: demographics • Primary: • Adults 30-54, HHI $100K+ • Secondary: • Super Affluents, HHI $300K+ • OR $1 million+ in investible assets Character Brand Values: Invention. Questioning Everything. Disruption. The Future. The Pursuit of Perfection. Brand Personality: Visionary. Bold. Intelligent. Self-Assured. Imaginative. Building Blocks that support Equity Target Audience: insights, psychographics Affluentials (influential affluents): Traditionally, power has been political or financial, rooted in authority or money – the capacity to make things happen or to keep them from happening. Influence, by contrast, is soft power – the ability to shift the course of events through ideas or relationships rather than coercion or enticement. Affluentials include gatekeeprs, opinion-shapers, star-makers and paradigm-sifters. Some are household names, but a greater number aren’t. They fly under the radar. What all of them have in common is that they are changing the world, pushing it in new directions, shaping its economy and culture as profoundly as the old high-and-mighty ever did. Equity (Describe what the brand stands for, or aims to, that makes it distinct) Product strengths/functional attributes: Uncommon luxury. Examples include a dealership and ownership experience that incorporate elements from high-end luxury brands more than the traditional auto category, the integration of intuitive technologies into all Lexus vehicles, hybrid technology that excels in the areas of performance and low emissions, an extreme attention to quality, details, and craftsmanship that surpasses Rolls, etc. • Consumer benefits: • Individually, each novel aspect of the brand speaks to a previously unmet category need such as treating people with respect in the dealership. • Collectively, Lexus’ approach to acting in an unconventionally wise manner has achieved an uncommon – if not unprecedented – result. Lexus, like the target who embraces the brand, has a pioneering spirit. And fans align themselves with the pioneering sentiment. COMMUNICATIONS ARCHITECTURE

6. Potential Future State No. 5 • Market: • United States • Present Lexus as an “Object of Desire”: • Turn the pursuit of perfection from a practical justification into an emotional attraction. • Own a feeling, an emotive response, more than an intellectual idea; be the status symbol for new wealth. • Just “be it” (act as a leader) versus having to “say it” (don’t rationalize that we are a leader). • Key competitor: • BMW: Based on prestige/sales volume • Mercedes: Based on prestige alone • Target Audience: demographics • Primary: • Adults 30-54, HHI $100K+ • Secondary: • Super Affluents, HHI $300K+ • OR $1 million+ in investible assets Character Brand Values: Design. Detail. Modernity. Mystery and Intrigue. The Pursuit of Perfection. Brand Personality: Vital. Engaging. Desirous. Artful. Provocative. Building Blocks that support Equity Target Audience: insights, psychographics Status-oriented Affluents: Affluent men and women who place a priority on acquiring a collection of possessions and experiences that ladder up to a meaningful statement about the successes they have achieved. If the traditional Lexus customer is content with the brand as a sign of self-reward, then this new group is distinct in that they have a greater desire to be outwardly expressive. That is, status conscious affluents aim to be acknowledged by others for their success. Correspondingly, messages about innovation and style- things that others can see – have greater currency for this group then do stories about interior comfort and quality. Style, on top of substance, is what helps to drive cachet and interest for this group. Equity (Describe what the brand stands for, or aims to, that makes it distinct) Product strengths/functional attributes: Luxury in the details. Examples include the crystal headlights in the next-generation LS, the dyed through leather in the ES, the L-finesse styling being integrated in all the new Lexus vehicles, the inclusion of high-tech/high-touch technology in Lexus’ vehicles, etc. • Consumer benefits: • Individually, the details incorporated into each Lexus provides an emotive, sensory immersive driving experience; one that enlivens the senses. • Collectively, Lexus’ approach to designing automobiles – incorporating progressive design, innovative technology, the finest materials, perfecting the details – makes the brand an object of desire. For the target, Lexus offers style, on top of substance, to satisfy their heart’s desire. COMMUNICATIONS ARCHITECTURE