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Investor

Presentation

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Safe Harbor Statement

Some of the comments made today will be forward-looking and are made
under the Private Securities Litigation Reform Act of 1995. These statements
include projections of revenue, earnings, capital structure, and other
financial items; statements on the plans and objectives of the Company and
its management; statements of future economic performance and
assumptions underlying the statements regarding the Company and its
business. The Company's actual results could differ materially from any
forward-looking statements due to several important factors, including,
among other things, slowing demand for the Company’s products, changes
in general economic conditions, including, unemployment, inflation or
deflation, high energy costs, uncertain credit markets and other macro-
economic conditions, the ability to maintain favorable vendor arrangements
and relationships, disruptions in our vendors’ operations, competitive
product, service and pricing pressures, the Company’s ability to successfully
implement its business initiatives in each of its four business segments, the
uncertainties and costs of litigation, as well as other risks and uncertainties
described in the Company's latest SEC filings. The Company assumes no
obligation to update any forward-looking statements made during this
presentation or in these materials except as required by law.
2

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Investment Highlights

 Leading global distributor in diversified end


markets
 Proven track record of steady growth
 Strong balance sheet with meaningful free
cash flow generation
 Committed to increasing shareholder value
 Opportunity for market share growth in large
and fragmented industries
 Large customer base built upon
long-standing relationships 3

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Company Overview

 Founded in 1928
 Leading distributor to four % Net Sales by Segment
TTM Ended Sep 30, 2017
primary end-markets:
- Automotive Parts (APG)
- Industrial Parts (Motion Industries)
- Business Products (S.P. Richards) 5%
12%
- Electrical / Electronic Materials (EIS)
52%
 Critical partner to 31%
our customers:
- Best in class operating and
distribution efficiencies
- Industry leading coverage of
consumable/replacement items $15.9 Billion
- Outstanding just-in-time service Annual Sales
- Technology solutions
4

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Portfolio Optimization

 Global Presence with Significant Brand Strength


 Financial Strength with Access to Capital and Low
Cost of Capital
 Enhanced Buying Power for Direct and Indirect
Spend
- Global sourcing, common suppliers and providers, volume/scale

 Common Distribution Processes


- Shared talent, practices, technology & systems, services,
transportation

We consistently challenge ourselves to support how GPC


is the “optimal” owner/operator of our portfolio businesses
5

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Track Record of Success

 Strong history of sales & profit growth  Dividend growth


- Sales have increased in 84 of 89 year history - 2017 marks GPC’s 61st
consecutive year of
- Profit has increased in 73 of 89 year history dividend increases

Acquired Acquired
Acquired

35%
Established IPO Traded On Acquired Ownership
NYSE: GPC

2010-
1925 1928 1948 1968 1975 1976 1998 1999 2014 2013 2017

Acquired Record Sales


Announced
Acquired & Earnings

Founded
6

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Ten Year Sales History

$ Billions
Record Sales & Earnings Per Share
15.5
in 7 of Last 10 Years
14.5
-0.4% +0.4%
13.5 +9.0%
+8.2%
12.5
+4.5%
11.5 +11.2%
10.5
+3.7% +1.6% +11.4%
9.5
-8.7%
8.5
7.5
2007 2008 2009 2010
EPS 2011 2012
+8%
EPS EPS
EPS
2013 2014
-2% -14% EPS EPS
2015 2016
+20% +19% EPS
+16% EPS EPS
+6% +10%* EPS
+0.4%
* Comparative Results -0.9%
7

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Automotive Parts Group Highlights

 Largest global auto parts network NAPA Established 1925


 TTM Sales at $8.3 billion as of Sept 30, 2017
- US: 57 DC’s & ~ 6,000 stores (1,100 Co. owned)
- Canada:12 DC’s & ~ 700 stores (200 Co. owned) 52%
- Mexico: 12 DC’s & 40 stores
- Balkamp: Parts Re-Packager
- Rayloc: Brake Products Distributor
- Altrom: OE Import Parts
- Heavy Vehicle Parts Group: Class 6,7,8 trucks
 New 40 DC & 2,100 Store Footprint in Europe via
acquisition of Alliance Automotive Group
 11 DC’s & 559 Store footprint in
Australia and New Zealand
 Superior NAPA brand name & customer service
 Globally positioned to benefit from positive
industry trends 8

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Quarterly Sales History

Sales
Billions
+4%
$2.25
+5% +4% -0- -2% -1% +1%
+22% +22% +4% +2% +3% +4%
$2.00 +25% +23% -2% +2%
-0-

$1.75
+4% +2%
+6% +5% +3%
$1.50

$1.25

$1.00

$0.75

$0.50

$0.25

$-

2012 +4% 2013 +18.5% 2014 +8% 2015 -1% 2016 +1% 2017 YTD
(+4% ex Fx) +4%
9
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
NA Automotive Parts Group Overview

 (90%) NAPA branded products Major Competitors


 NAPA Know How Differentiators: U.S. - AutoZone, Advance Auto Parts & O’Reilly
- product quality, depth and breadth Canada - Uni-Select & AAP/Carquest
- service capabilities
- technology offering
 Commercial/DIFM customers
- professional service repair facilities
- approx. 75% of NAPA sales Major Account Customers
 17,000+ NAPA AutoCare Centers
- 1,600+ in Canada (& ~600+ AutoPro Centers)

 Major Accounts: AAA, Goodyear,


Firestone, TBC, CBAdvantage
 Retail/DIY customers
- individual consumer customer
- approx. 25% of NAPA sales 10

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
The Automotive Aftermarket
Market Trends Favoring the Larger
DIFM Segment DIFM
billions
DIY
$75 (U.S. Market Size - Retail Pricing)
$75B*
$67B
$60
+3%
5-Yr
CAGR
$45

$30 $30B $32B*

+1%
$15 5-Yr
CAGR

$0
2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020* 11
Source: Frost & Sullivan/ACA * Forecasted
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Vehicle Fleet Trends

Consumers Are Maintaining Older Vehicles


$1,000 Prime Years for Aftermarket Repair
Start in Year 6
$800
Annual Spend per Vehicle

$600
Avg. Repair
Cost/Year
$400
1-5 Yr = $555
$829 $868 $861 $873
$741 $776 $857 6-12 Yr = $829
$644 $671
$573 $776 $802 $812
$484
$403
$200 > 12 Yr = $797
Vehicles 6+
$0 Years of Age
1 2 >70% of Fleet
3 4 5 6 7 8 9 10 11 12 13 14 15+
Vehicle Age
12
Source: IMR, Inc. Automotive Research, BB&T

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Fundamentally Strong Aftermarket

+1 to 2%
 Total vehicle fleet growing thru 2020

11.7 Years
 Average age of fleet increasing

$2.50/GL
 Relatively low gas prices thru Sep 2017

+1.3% thru
 Miles driven reaching new peaks Sep 2017

13

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Automotive Parts Group - Growth Opportunities

Key Areas of Focus NAPA Initiatives

• Plans for New NAPA AUTOPARTS Stores in U.S. – Merle’s,


Standard, Olympic and Monroe Store Groups
New Distribution
• Alliance Automotive Group acquisition in Europe
• Expansion in Canada, Mexico, Australia and New Zealand

NAPA AutoCare
• 17,000+ Independent AutoCare Members
• $1.3+ Billion in 2016
Major Accounts • $2.1+ Billion in 2016
Outside Sales • Adding Outside Sales Representatives at Stores
Connectivity • Adding Installer Connectivity and Enhanced Capabilities
• Heavy Duty Parts, Import Parts, Paint, Tools & Equipment
Special Markets • Recent Acquisitions: Olympus & Auto Camping Imports; Global
Heavy Duty and Stone Truck Parts

Store Resets & Upgrades


• Retail Impact Store Initiative – 500 Stores by December 2017 14
• Ongoing Program to Consistently Refresh and Upgrade Stores
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
NAPA AutoCare Center

Before

The Aftermarket’s Preeminent Commercial Program


for the Independent Repair Center
15

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
NAPA Retail Store

Before

16

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
NAPA Retail Store – New Store Concept

After

17

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Alliance Automotive Group

 Leading European distributor of % Revenue by country1


vehicle parts, tools and
workshop equipment
11%
 Focused on light vehicle and
51%
commercial vehicle replacement 38%
parts
 #2 European player in attractive
markets:
Key figures (2017E USD)1,3
- #1 in France
- #2 in the U.K. Gross US GAAP
- #3 in Germany Billings Revenue
$2.3bn2 $1.7bn
- Announced entry into Poland through
Total number of outlets: 2,100
October 2017 acquisition of majority stake
Distribution Affiliated
in Groupauto Polska centers Owned outlets
333
outlets
40 1,768
 Integrated distribution model
Suppliers Employees Customers
similar to GPC c. 500 c. 7,500 c.40,000

1 AAG management estimates for 2017; USD / EUR of 1.195 as of 9/22/17


2 Includes supplier direct billing, which are accounted for “Net” under U.S. GAAP.
3 Financial estimates based on preliminary financial information. Estimates are subject to

change based on final conversion of U.S. GAAP statements and mapping to GPC accounts
18

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Strategic Rationale

#2 European player in attractive markets


 Top 3 market share in Europe’s largest automotive aftermarkets (France, U.K.,
Germany)
 Attractive industry fundamentals and long-term growth drivers

Complementary business model with GPC & strong cultural fit


 Alignment with GPC values and culture
 Mirrors GPC’s North American automotive distribution business model

Effective and experienced senior leadership team


 Grew business from <€100mm to ~€1.9bn1 in gross billings since founding in 1989
 Senior team will continue to lead European business under GPC ownership

Growth potential – both organic and via accretive acquisitions


 Consistent growth in core business
 Large reservoir of bolt-on and strategic acquisition opportunities

~USD $25mm in annual synergies


 Expected to be fully achieved within three years
 Enhanced buying power for direct and indirect spend
1 Grossbillings represent prior year actual results and AAG management estimates for 2017 including supplier direct billings. Financial estimates
based on preliminary financial information. Estimates are subject to change based on final conversion of U.S. GAAP statements and mapping to 19
GPC accounts. Estimated U.S. GAAP revenues were <€100mm (1989) and €1.4bn (2017E)

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
European Automotive Aftermarket
Technological
Car parc size
developments

IAM4 gaining share


Car parc age Long term growth drivers over OES segment

Total traffic Favorable regulation

Overview of European LV aftermarket at European LV market per country at


distribution level distribution level
Other Germany
France2 U.K.2 Germany2
€14.0bn
21% 21%
Car parc size (m, LV) 38.3 35.6 47.9
Poland 6%
€4.0bn 13% France
Car parc age (years, PC) 8.9 7.6 9.3
6% €8.9bn
Benelux
8%
13% Mileage (km per year, LV) 13,400 13,400 14,300
12%

Spain Annual spend per car3


U.K. 390 385 470
(retail price, €, PC)
Italy €8.5bn

TOTAL MARKET VALUE AAG operates in the largest and most attractive
€68bn1 European markets
Source: Roland Berger
1 Perimeter—LV parts (tires included) plus tools and equipment, captive parts excluded, in EU's 28 countries; 2 Stats relate to 2016; 3 Parts only
4 Independent Aftermarket (“IAM”); IAM represents approx. 48% of total LV aftermarket in France, U.K., and Germany combined
20

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Top 3 position in the largest European markets
with significant opportunities for growth
IAM distribution players in France, U.K., Germany and Poland

#3 player2
3% market share1 AAG current
presence
2% market growth3
Expected AAG
presence by
December 2017

Oct 2017 acquisition


of majority stake in
Groupauto Polska
#2 player 13% market share1
13% market share1 5% market growth3
3% market growth3
Major IAM distribution players in Europe Gross Billings €bn 4

2.6
1.9
1.6
1.5
#1 player
32% market share1,3 1.4
2% market growth3 1.2
0.8
0.6
0.5
Source: Roland Berger and AAG estimates based on third party data
1 AAG's market share in the IAM segment (excluding the DIY channel) for LV part sell-out (2016)
2 Market position in Germany in the wholesalers segment of IAM (excluding integrated chains and DIY channel)
3 2016 – 2018E growth rate per Roland Berger report
4 Management estimates pro forma for pending acquisitions as of 2016 and per Roland Berger analysis
21

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Australasian & Mexico Expansion

GPC Asia Pacific


 Market Share Leader in
Australia and New Zealand
- 559 Company owned stores
- Added 60 stores since 2015
Major Competitors
Supercheap, Burson & Autobarn

NAPA Mexico
 Growth Plan for Company
Owned and Independent NAPA
AUTOPARTS Stores
- 39 stores today.. and growing
22

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Motion Industries – Industrial Parts Group

Industrial Parts Group Highlights Founded 1946


 Leading industrial parts MRO Acquired 1976
distributor in North America
 TTM Sales at $4.9 billion as of Sept 30, 2017
- 13 DC’s and 525+ branches and service
centers in the U.S., Canada and Mexico
31%
 Proven track record with over 70
years in the industry
 Access to over 6.9 million products
- Global manufacturing base
 Very large and fragmented industry
 Efficient supply chain and
vendor partnerships
 High customer service levels
and technical sales support
 Industry leading E-Business capabilities
23

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Quarterly Sales History
Sales
Millions
+7% +7% +7%
+7% +10% +10%
+3% -2% -4% +2% -2% -1%
$1,200 +4%
+12% +8% +4.5% -1% +4%
-2% -2.5% -8%
+2% +3%
$1,100

$1,000

$900

$800

$700

$600

$500

$400

2017 YTD
2012 +7% 2013 -0-% 2014 +8% 2015 -3% 2016 -0-
+7%
24

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Industrial Parts Group Overview

 Suppliers: SKF, Baldor, Gates,


Rexnord, Timken and Eaton Major Competitors
Applied Industrial Technologies
Kaman (Industrial Technologies Div.)
DXP Enterprises

Sales by Product Category


 Customers represent all industry Other
Seals, Pumps
groups, including Equipment & & Hose
4%

Machinery, Food Products, Iron & Steel, 8%

Pulp & Paper and Mining & Aggregate


Material Handling
9% Bearings & Power
Electrical & Automation
Transmission
11% 37%

Industrial & Safety


Hydraulics & Pneumatic
17%
14%

25

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Top Industries

YTD 2017 Update


Growing Sectors Lagging Sectors
 Equipment and Machinery  Automotive
 Food Products & Processing  Rubber & Plastic Products
 Pulp and Paper
 Iron and Steel
 Fabricated Metal Products
 Lumber and Wood Products
 Chemical Products
 Aggregate & Cement
 Equipment Rentals/Leasing
 Oil & Gas Extraction

Data for 9-mos 2017 26

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Industrial Parts Group
Growth Opportunities
 Product Category Expansion
- Automation, Process Pumps and Safety
Only 7% share of market –
estimated at $70+ billion
 Acquisitions
- 35% Investment in Inenco (Australia) April 2017
- Added Numatic Engineering – August 2017
- Added Apache Belts and Hose – Nov 2017
 Expansion in New Markets
 Repair, Fabrication and Assembly
 E-Commerce
 Vending, VMI and Store Room Mgmt
 Share Gains with Major Accounts

27

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Business Products Group Highlights

 S.P Richards is the nation’s second largest


distributor of business products, office Founded 1848
furniture, computer supplies and facilities, Acquired 1975
breakroom and safety supplies
 TTM Sales at $2.0 billion as of Sept 30, 2017 12%
- 56 DC’s in U.S. and Canada
 Long history of serving the independent
reseller and national accounts
 Access to over 69,000 products
- 800+ leading manufacturers
- Global sourcing includes nine proprietary product
brands
 Superior fill rates, accurate and timely
shipments and competitive pricing
 Database management,
logistical support, e-commerce
 Comprehensive array of sales,
marketing and training programs 28

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Quarterly Sales History
Sales
Millions
+3% +5% -5%
+15% +9% +5%
$500 +17%
+14% +1% +4%
-3%
+22%
$475
-2%
-1%
$450
-2% -1% -3%
-1% -0- +4%
$425
+3% -3%
$400 -4%

$375

$350

$325

$300

2012 -0-% 2013 -3% 2014 +10% 2015 +7.5% 2016 +2% 2017 YTD
+3%
29

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Business Products Group Overview

 Suppliers: Hewlett Packard, 3M, Hon,


Newell, Kimberly Clark, Georgia Pacific.. Major Competitors
Essendant
(formerly United)

Primary Sales Channels


Alternate Channel
13%
 Customers: Serves > 9,300 business Internet Reseller
product resellers and superstores 6%

Nat’l Accounts Independent


22% Resellers
59%

30

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Drive for Diversification

PRODUCT MIX
Office Supplies FBS Furniture Tech

8% 13% 15% 15%


22% 17%
32% 26% 41%
47% 27%
37%

2010 2016 2020


(Est)

Initiatives to Diversify Product Offering are Significantly


Increasing Facility, Breakroom & Safety Supply Sales
31

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
U.S. GDP and Employment Levels

Demand Drivers Relatively Stable, but Also Mixed..

U.S. GDP (% Change)


Steady and Consistent New
5.0 Job Growth for last 5 Years
4.0 +3.0%
3.0
in Q3’17
2.0
Service-Providing Employment
1.0 700
0.0 600

-1.0 500
Q3'13 Q1'14 400
Q3'14 Q1'15
Q3'15 Q1'16 300
Q3'16 Q1'17
+1.7% in 13 Q3'17 200
+2.6% in 15 +1M New Jobs in
100
+2.4% in 14 +1.6% in 16 2017 thru Sep
0
Q3'13 Q1'14
Source: BEA.gov Q3'14 Q1'15
Q3'15 Q1'16
Q3'16 Q1'17
-4.5M in 2008/09 Q3'17

1M+ in 2010 Sep 2017


Tepid GDP Growth 2M+ in 2011 - 2016
Unemployment
in 2016 at 1.6% Rate at 4.2%
Source: BLS.gov

32

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Business Products Group

Growth Opportunities Low percentage share of market


 Market Share Initiatives – estimated at $100+ billion
(Retail)
 Product Line Expansion
 New Products
 Private Brand Expansion
 Enhanced Dealer Services/
Marketing & Electronic Content
 FBS and Alternate Channel
Growth
- JAL, Dinesol & Malt Acquisitions in 2015
- Safety Zone and RMC in 2016
33

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Electrical Markets Group Highlights

 EIS is a leading distributor of electrical,


industrial and specialty products via three Founded 1950
business groups: Acquired 1998
- Electrical/Electronic

- Fabrication & Coating


5%
- Specialty Wire & Cable

 TTM Sales at $765 million as of Sept 30, 2017


- 45 locations in U.S., Mexico, Canada, Puerto Rico and
Dominican Republic

 Highly developed supply chain


 Long-standing partnerships
 Sophisticated information technology
and e-business capabilities
 Knowledgeable employees with
product, technical and service solutions 34

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Quarterly Sales History
Sales
Millions
+11%
+35% +4% +2% +12%
$200 +32% -5% +5
+30% +23% +1% -0- -3% -9% -0-
$180

$160 +5%
+5% +9% -4% -5% +6%
-5%
-2%
$140

$120

$100

$80

$60

$40

$20

$-

2012 +5% 2013 -2% 2014 +30% 2015 +2% 2016 -5% 2017 YTD
9% 35

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Electrical Markets Group – Overview

 Access to over 100,000 products: Suppliers


• Electrical Insulating Materials
• Magnet Wire
• Wire & Cable
• Bonding & Adhesive Materials
 More than 20,000 customers in the
Electrical/Electronic, Fabrication &
Coating and Specialty Wire & Cable
markets, such as: Major Competitors
• First Solar Essex/Brownell
• General Electric (a Division of Superior Essex)

• Baldor Anixter

• Emerson Houston Wire & Cable

• Eaton 36

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Evolving Sales Composition

Electrical/Electronic Fabrication Wire & Cable

5%
20% 36%
45%
38% 33%

75% 26% 22%

2010 2017 (Est) 2020 (Est)

Initiatives Focused on Growth Opportunities


in Wire & Cable Markets
37

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Electrical Markets Group
Index Supportive of Industry Growth
- Mfg. Contraction in Q4 2015 Followed by Ongoing Expansion -
Institute for Supply Management - Purchasing Managers Index

50

38

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Electrical Markets Group

Growth Opportunities
7% share of market –
 Market Share Initiatives
estimated at $10+ billion
- Product Line Expansion
- New Products
- Enhanced Services

 Market Expansion/Share Gains


- Fabrication & Coating
- Cable & Connectivity

 Acquisitions
- CPS in 2016 Both for
Wire & Cable
- Empire in April 2017 39

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Drivers and Opportunities

Demand Drivers Opportunities and Initiatives


Automotive • 8-9% share of market – est. at $100+ billion (Retail)
• Total vehicles > 6 years old • Approx. 500,000+ Products & Tens of Thousands
• Complexity of vehicles/ # Trucks & SUV’s of Customers
• Average age of cars & light trucks • New Distribution, NAPA AutoCare, Major A/C’s, O/S Sales,
• Gas Prices/Miles driven on roads each Connectivity, Niche Markets – Heavy Duty, Imports, Paints
year and Tools & Equipment, Store Resets and Retail initiatives
Industrial • 7% share of market – estimated at $70+ billion
• Manufacturing industrial production • Approx. 6.9 million Products & > 300,000 Customers
• Capacity utilization rates • Growth via product line expansion, acquisitions and
• Capital expenditure budgets/expansion targeted industries – e.g. Waste Water Treatment, Power
• Manufacturing employment in U.S. Generation, Municipalities and Transportation & Ports
Business Products • Low percentage share of market – est. $100+ billion (Retail)
• U.S. gross domestic product (GDP) • More than 69,000 Products & Approx. 9,300 Customers
• White collar employment numbers • Growth via market share initiatives, product line expansion
• Office occupancy rates in U.S. (including proprietary brands), new products, enhanced
marketing/electronic content and new or alternate channels
via FBS diversification
Electrical Markets • 7% share of market – estimated at $10+ billion
• Manufacturing expansion (ISM’s PMI) • Over 100,000 Products & > 20,000 Customers
• Capacity utilization rates • Growth via new products, new markets & acquisitions
(including fabrication & coating and cable & connectivity
market expansion opportunities) 40

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Financial Focus

Recent Financial Highlights


Q3 2017 9-Mos 2017

2017 v. '16 2017 v. '16

Net Sales (billions) $4.10 +4% $12.10 +5%

Net Income (millions)* $170 (8%) $520 (3%)

Diluted EPS* $1.16 (7%) $3.52 (1%)

* Before transaction costs


primarily for AAG acquisition 41

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Mixed Operating Margin Trend

8.5

8.3 8.1%

8.0 7.8%

7.8

7.5 Targeting Further


Expansion to 8.5-9.0%
7.3 Operating Margin

7.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 17-Sep

42

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Financial Focus

Balance Sheet Highlights


 Strong cash position
- Approx. $210 million at September 30, 2017
 Prudent working capital management
- Focus on working capital efficiency and cash conversion cycle
 Solid after-tax return on invested capital (ROIC)
- ~15% ROIC for 12-Mos ending September 30, 2017
 High after-tax return on assets (ROAA)
- Consistently at > 7%
 Comfortable with capital structure
- Prudent debt to total capitalization and debt to EBITDAR
43

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Financial Focus – Capital Structure

Historically Low Debt Levels


Total Debt to
25%
Total Capitalization
Debt Trend (In millions)

$1,400
$1,200
$1,000
$800
$600
$400
$200
$0

44

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Improving W/C Efficiency Trends

30.0

23.1%
25.0

20.0

15.0

10.0 13.3%
Steady and consistent improvement and W/C Eff.
positioned to further improve with effective asset
5.0
management and sales and earnings growth

0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 17-Sep

45

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Improvement in Working Capital
140

DSO DIO DPO


DIO - 127
120

DIO - 106

100

DPO - 104

80

60

DSO - 47
DSO - 45
40

DPO - 39

20
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 46

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
…..Compressed CCC

135
CCC
CCC - 133
125

115

105

95

85

75

65

55
CCC - 49
45
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
47

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Return On Invested Capital

Consistently Exceeding WACC


18.0
17.0
16.0 ROIC 15.0%
15.0
Continue to target
14.0 15.3% investments with
13.0 > 15% ROIC
12.0
11.0
10.0 ~8% Spread
9.0
8.0%
WACC
8.0
7.0
7.0%
6.0

48

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Steady and Strong Cash Flows

Free Cash Flow


Capital Expenditures

1,200 Dividend Payout

1,050
$800 Mil

900

750 $255M

600
$150M
450

300 $395M

150

0
2012 2013 2014 2015 2016 2017 e

49

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Commitment to Shareholders

Priorities for Cash


 Reinvestment in
Businesses
 Acquisitions
 Dividends
 Share Repurchases

50

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Recent Acquisitions

5 4 1 3
2015 4 Store Groups Miller, Oil & Gas Connect-Air JAL, Dinesol $180M
AEA Lake Erie, Moss Malt

11 5 1 2
Olympus, Covs, Epperson, CPS Safety Zone,
2016 Global, AMX, MO Power, RMC Jan/San $600M
Auto-Camping, ASL, Colmar, OBBCO,
5 Store Groups Braas
10 3 1
AAG, 6 Store Groups $2.0B
35% Inenco
2017 (+48 new stores),
(Australia), Empire
Stone Truck Parts,
Numatic, Apache
Welch, Sulco T&E

Will remain active in seeking additional acquisitions 51

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Commitment to Shareholders

Dividend Record
3 2017 Annual Dividend $2.70
3% Yield and +3% from 2016
2.5

2
61 Consecutive Years of
Increased Dividends
1.5

0.5

0
2017
52

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Commitment to Shareholders

Share Repurchases History


(in millions) # Shares Cash Paid

1994 – 2004 24.0 $649.9

2005 – 2009 18.2 782.3

2010 – 2014 8.2 495.3

2015 3.3 292.2

2016 2.0 181.4

YTD 2017 1.9 171.9

TOTAL 57.6 $2,573.0

17.4 Million Shares Remaining to be Repurchased


Consistent History Of Returning Cash To Shareholders
53

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Commitment to Shareholders

5-Year Returns to Shareholders


2012 2013 2014 2015 2016

Dividends $301.0 $326.2 $347.3 $368.3 $386.9

Share
81.8 120.6 95.9 292.3 181.4
Repurchases

Total 382.8 446.8 443.2 660.6 568.3

Approx. $2.5 Billion Returned to


Shareholders Over 5 Years
54

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
GPC Outlook & Objectives

Key Long Term


2017 Outlook
Annual Objectives

• Sales Growth +4-5%


• Improve Sales by 6-8%
• Slight Decline in Operating
Margin • Increase Operating Margin

• Flat Adj. Earnings per Share • Grow EPS by 7-10%

• Cash Flow in $750-$800M • Generate Solid Cash Flows


Target Range
• Maintain Strong Bal. Sheet
• Steady W/C Efficiency
55

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Total Return to Shareholders

Periods Ending December 31, 2016

1 YEAR 3 YEAR 5 YEAR 7 YEAR 10 YEAR

14.3% 7.6% 12.4% 17.6% 10.8%

12.0% 8.9% 14.7% 12.8% 7.0%

16.5% 8.7% 12.9% 12.4% 7.5%

8.9% 10.1% 17.1% 14.5% 9.5%

56

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
P/E, Stock Price, EPS & Dividend Trends

Market Capitalization
110.00 $14.2 Billion @ Dec 31, 2016 5.00
4.75
100.00 4.50
4.25
90.00 4.00
3.75
80.00
3.50
70.00
P/E 3.25
3.00
60.00 Stock Price 2.75
2.50
50.00 EPS 2.25
2.00
40.00 Dividend 1.75
1.50
30.00
1.25
20.00 1.00
0.75
10.00 0.50
0.25
0.00 0.00
80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 11 12 14 16
57

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Thank You!
Contact Information:
Carol Yancey - EVP & CFO: 678-934-5044
Carol_yancey@genpt.com

Sid Jones - SVP IR: 678-934-5628


Sid_jones@genpt.com

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.

All Content is Company Confidential and Exclusive Property of Genuine Parts Company.

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