Analyst Day Aurora, CO Distribution Center August 6, 2019 Forward - PowerPoint PPT Presentation

Analyst Day Aurora, CO Distribution Center August 6, 2019

Forward Looking Statements We i n t e n d t o b e c o ve r e d b y, a n d w e c l a i m m a r k e t fo r a u t o p a r t s , c o m p e t i t i o n , w e a t h e r, t h e p r o t e c t i o n o f, t h e s a fe - h a r b o r p r o vi s i o n s r i s k s a s s o c i a t e d w i t h t h e p e r fo r m a n c e o f fo r fo r w a r d - l o o k i n g s t a t e m e n t s w i t h i n t h e a c q u i r e d b u s i n e s s e s , o u r a b i l i t y t o h i r e a n d m e a n i n g o f t h e P r i va t e S e c u r i t i e s Li t i ga t i o n r e t a i n q u a l i fi e d e m p l o ye e s , c o n s u m e r d e b t R e fo r m A c t o f 1 9 9 5 . Yo u c a n i d e n t i fy t h e s e l e ve l s , o u r i n c r e a s e d d e b t l e ve l s , c r e d i t s t a t e m e n t s b y fo r w a r d - l o o k i n g w o r d s s u c h a s r a t i n gs o n p u b l i c d e b t , go ve r n m e n t a l “e s t i m a t e , ” “m a y, ” “c o u l d , ” “w i l l , ” r e gu l a t i o n s , i n fo r m a t i o n s e c u r i t y a n d c yb e r- a t t a c k s , t e r r o r i s t a c t i vi t i e s , w a r a n d t h e “b e l i e ve , ” “e x p e c t , ” “w o u l d , ” “c o n s i d e r, ” “s h o u l d , ” “a n t i c i p a t e , ” “p r o j e c t , ” “p l a n , ” t h r e a t o f w a r. A c t u a l r e s u l t s m a y m a t e r i a l l y “i n t e n d ” o r s i m i l a r w o r d s . In a d d i t i o n , d i ffe r fr o m a n t i c i p a t e d r e s u l t s d e s c r i b e d o r s t a t e m e n t s c o n t a i n e d w i t h i n t h i s i m p l i e d i n t h e s e fo r w a r d - l o o k i n g s t a t e m e n t s . p r e s e n t a t i o n t h a t a r e n o t h i s t o r i c a l fa c t s a r e P l e a s e r e fe r t o t h e “R i s k Fa c t o r s ” s e c t i o n o f fo r w a r d - l o o k i n g s t a t e m e n t s , s u c h a s o u r a n n u a l r e p o r t o n Fo r m 1 0 - K fo r t h e ye a r s t a t e m e n t s d i s c u s s i n g, a m o n g o t h e r t h i n gs , e n d e d D e c e m b e r 3 1 , 2 0 1 8 , a n d o t h e r r e c e n t e x p e c t e d gr o w t h , s t o r e d e ve l o p m e n t , S E C fi l i n gs , fo r a d d i t i o n a l fa c t o r s t h a t i n t e gr a t i o n a n d e x p a n s i o n s t r a t e gy, b u s i n e s s c o u l d m a t e r i a l l y a ffe c t o u r fi n a n c i a l p e r fo r m a n c e . Fo r w a r d - l o o k i n g s t a t e m e n t s s t r a t e gi e s , fu t u r e r e ve n u e s a n d fu t u r e p e r fo r m a n c e . T h e s e fo r w a r d - l o o k i n g s p e a k o n l y a s o f t h e d a t e t h e y w e r e m a d e a n d w e u n d e r t a k e n o o b l i ga t i o n t o p u b l i c l y s t a t e m e n t s a r e b a s e d o n e s t i m a t e s , p r o j e c t i o n s , b e l i e fs a n d a s s u m p t i o n s a n d a r e u p d a t e a n y fo r w a r d - l o o k i n g s t a t e m e n t s , n o t gu a r a n t e e s o f fu t u r e e ve n t s a n d r e s u l t s . w h e t h e r a s a r e s u l t o f n e w i n fo r m a t i o n , S u c h s t a t e m e n t s a r e s u b j e c t t o r i s k s , fu t u r e e ve n t s o r o t h e r w i s e , e x c e p t a s u n c e r t a i n t i e s a n d a s s u m p t i o n s , i n c l u d i n g, r e q u i r e d b y a p p l i c a b l e l a w. b u t n o t l i m i t e d t o , t h e e c o n o m y i n ge n e r a l , i n fl a t i o n , t a r i ffs , p r o d u c t d e m a n d , t h e 2

O’Reilly Analyst Day Agenda 8:00 – 8:30 Meet & Greet with Management 8:30 – 10:30 Management Presentation and Q&A Session 10:30 – 11:00 Distribution Center Tour 11:00 – 11:45 Light Lunch with Management 11:45 – 2:00 Store Tours 2:00 Shuttle to Denver International Airport 3

O’Reilly Culture Statement O’Reilly is COMMITTED To Our Customers and Our Team Members. We are ENTHUSIASTIC , HARDWORKING PROFESSIONALS who are DEDICATED to TEAMWORK , SAFETY/WELLNESS and EXCELLENT CUSTOMER SERVICE . We will practice EXPENSE CONTROL while setting an example of RESPECT , HONESTY , and a WIN-WIN ATTITUDE in everything we do. 4

Greg Johnson Chief Executive Officer & Co-President 5

Management Team Present Today Years of Experience in the Automotive Aftermarket Industry Greg Johnson Chief Executive Officer & Co-President 37 Years Chief Operating Officer & Co-President Jeff Shaw 35 Years Tom McFall Chief Financial Officer & Executive Vice President 21 Years Brad Beckham Executive Vice President of Store Ops & Sales 23 Years Jason Tarrant Senior Vice President of Western Store Ops & Sales 17 Years Jeremy Fletcher Senior Vice President of Finance & Controller 14 Years Senior Vice President of Omnichannel Brent Kirby 1 Year Diego Santillana Vice President of Southwestern Division 23 Years Mark Merz Vice President of IR, Reporting & Planning 12 Years Thad Slicker Regional Director – DCs 11 Years David Slape Distribution Center Manager 14 Years 6

Company Overview 5,344 Stores in 47 states (as of June 30, 2019) 27 Distribution Centers 81,000+ Team Members Last-Twelve-Months Sales: Do-It-Yourself versus $9.8 Billion Professional Split: 57% and 43% (as of June 30, 2019) (for the year end December 31, 2018) Market Capitalization: $30 Billion (as of July 29, 2019) Store Count 200-600+ 100-199 1-99 7 Distribution Center Future Distribution Center

Year-to-Date 2019 Results 3.3% Comparable Store $8.56 Diluted EPS versus Sales Increase (on top of a $7.89 in 2018 4.0% increase in 2018) Generated $541 million of 52.9% Gross Margin Free Cash Flow versus 52.5% in 2018 Repurchased $921 Million 18.9% Operating Margin Under Share Repurchase Program Opened 105 net, New Stores 8

Industry Drivers #1 Driver for Demand in Our Industry is Total Miles Driven • Lack of comprehensive mass transit • Since 2013, growth in annual miles system in U.S. results in sustainable driven has resumed as total commuter miles driven employment has improved – 1 . 0 % i n c r e a s e i n mi l e s d r i v e n Y T D 2 0 1 9 • 23% increase in miles driven from – Av e r a g e P e r G a l l o n P r i c e f o r R e g u l a r 1998 to 2018 G a s o l i n e $ 2 . 7 2 o n 0 6 / 3 0 / 2 0 1 9 • Miles driven were flat from 2008 through 2013 due to macro economic pressures Historical U.S. Miles Driven & Gasoline Prices 3.3 $3.50 2.8% 1.2% 0.4% 3.5% 2.6% 0.8% 0.8% 0.5% (1.9)%(0.6)% 0.4% (0.6)% 0.6% 0.7% 1.7% 3.1 $2.88 2.7% 1.2% 2.1% 1.3% 2.8 $2.25 2.5% 2.5% 2.6 $1.63 2.3 $1.00 Miles Driven (in trillions) Gas Prices (dollars per gallon) Source: Dept. of Transportation and Dept. of Energy 9

Industry Drivers 285 19 Growing U.S. Light Vehicle Population 273 17 • Growing SAAR reflects 261 15 positive consumer confidence 249 13 • Increasing SAAR and stable 237 11 scrappage rates return the population to historic 225 9 growth trend Light Vehicle Population SAAR Light Vehicle Sales Continued Aging of U.S. (in millions) Light Vehicle Population: • Better engineered vehicles, 12.0 which can be reliably driven 11.4 at higher miles, results in an Years aging vehicle fleet 10.8 • 10 year CAGR of 1.8% 10.2 exemplifies the gradual pace 9.6 of change in the vehicle fleet 9.0 • Average light vehicle age not expected to decrease in Light Vehicle Age the future Source: 2019 ACA Factbook and Company Projections 10

Industry Landscape Top Ten Auto Parts Chains 1. AutoZone Inc. (5,686) 1 2. O’Reilly Auto Parts (5,344) 40,000 3. Advance Auto Parts (5,077) 2 30,000 4. Genuine Parts/NAPA (1,092) 1,2 53% 54 54% 50% 51% 49% 48% 44% 45% 47% 5. Pep Boys/Auto Plus (972) 2 20,000 6. Fisher Auto Parts (500) 2 10,000 7. Auto-Wares (300) 2 - 8. Replacement Parts (175) 9. Automotive Parts Headquarters (130) 2 Top 10 Auto Parts Stores Industry 10. Hahn Automotive (90) Source: 2020 ACA Factbook and Company estimates 1 U.S. Domestic stores 2 Company owned stores Size of Automotive Aftermarket Source: SEC filing or company data Total Market: $297 Billion O’Reilly Estimated Addressable Market: 31% $90 - $100 Billion 38% Labor Share of DIY is More Consolidated Auto Parts Share of Professional Sales Professional Sales $92,915 $113,563 Professional Continues to be Highly Fragmented O’Reilly estimate of addressable market size assumes wholesale price for professional parts sales and excludes certain sales Tire Sales $32,000 channels from DIY or professional sales, including vehicle DIY Sales collision/body and glass. $58,302 11% 20% 11 Source: 2020 ACA Factbook

Branding Strategy • Increasing number and acceptance • Proprietary Brands make up over of lines in Proprietary Brands 45% of sales (LTM) – Val u e an d P rem i u m P ro p ri et ary • Continue to broaden product line Brand s coverage – O’R ei l l y P ro p ri et ary Bran d s are gro wi n g fas t er t h an Nat i onal Brands • Im p o rt Di rect i s o ur fas t es t gro wi n g b ran d Proprietary Brands National Brands 12