Investor Presentation All Content is Company Confidential and - - PowerPoint PPT Presentation

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

Investor Presentation

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

• bligation 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 distributor in diversified end markets  Proven track record of steady growth  Solid balance sheet with meaningful free

cash flow generation

 Committed to increasing shareholder value  Opportunity for market share growth in

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

primary end-markets:

• Automotive Parts (APG)
• Industrial Parts (Motion Industries)
• Office Products (S.P. Richards)
• Electrical / Electronic Materials (EIS)

 Critical partner to

• ur customers:
• Best in class operating and

distribution efficiencies

• Industry leading coverage of

consumable/replacement items

• Outstanding just-in-time service
• Technology solutions

% Net Sales by Segment 12-Mos. Ended September 30, 2016

$15.2 Billion

#1 or #2 in Every Segment 13% 30% 4% 53%

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.

Traded on NYSE: “GPC” 1968

Track Record of Success

Acquired Motion Industries 1976

GPC Founded 1928

Record Sales & Earnings 2010- 2014 Acquired EIS 1998 Acquired S.P. Richards 1975

NAPA Established 1925

IPO 1948

GPC = Quality + Consistency + Growth

 Strong history of sales & profit growth

• Sales have increased in 63 of the last 66 years
• Profit has increased in 50 of the last 55 years

1925 1925 1945 1945 1955 1955 1965 1965 1975 1975 1985 1985 1995 1995 2005 2005 2015 2015

 Dividend growth

• 2016 marks GPC’s 60th

consecutive year of dividend increases

6

Acquired Asia Pac 2013

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

Ten Year Sales History

7.5 8.5 9.5 10.5 11.5 12.5 13.5 14.5 15.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 +9.0%

$ Billions

EPS +9% EPS +6.5% EPS

• 6%

EPS

• 16%

EPS +19% EPS +19% EPS +16% EPS +6%* EPS +10%*

+6.9% +3.7% +1.6%

• 8.7%

+11.4% +11.2% +4.5% +8.2%

2010-2014: Five Years of Record Sales 2010-2015: Six Years of Record EPS

7

* Comparative Results

• 0.4%

EPS +0.4%

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

Automotive Parts Group Highlights

 Largest auto parts network in North America  TTM Sales at $8.1 billion (as of 9/30/16)

• US: 57 DC’s & ~ 6,000 stores (1,100 Co. owned)
• Canada:12 DC’s & ~ 700 stores (200 Co. owned)
• Mexico: 12 DC’s & 34 stores
• Balkamp: Parts Re-Packager
• Rayloc: Brake Products Distributor
• Altrom: OE Import Parts
• Heavy Vehicle Parts Group: Class 6,7,8 trucks

 8 DC’s & 546 Store footprint in

Australia and New Zealand

 Superior NAPA brand name  Highly acclaimed customer service  Positioned to benefit from positive

industry trends

53%

NAPA Established 1925

8

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

Quarterly Sales History

$- $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25

• 0-
• 2%

2013 +18.5% 2011 +8% 2012 +4% 2015 -1% (+4% ex Fx)

Sales Billions

+2% +9% +9% +9% +6% +6% +4% +2.5% +5% +3% +22% +23% +4% Sales YOY +25% +22% +5% +4% 9

• 0-

2014 +8%

• 2%

+1.5%

+1% YTD

• 1%

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

Automotive Parts Group Overview

 (90%) NAPA branded products  NAPA Know How Differentiators:

• product quality, depth and breadth
• service capabilities
• technology offering

 Commercial/DIFM customers

• professional service repair facilities
• approx. 75% of NAPA sales

 16,700+ NAPA AutoCare Centers  Major Accounts: AAA, Goodyear,

Firestone, TBC, Midas, CBAdvantage

 Retail/DIY customers

• individual consumer customer
• approx. 25% of NAPA sales

Major Competitors

U.S. - AutoZone, Advance Auto Parts & O’Reilly Canada - Uni-Select & AAP/Carquest Australasia - Supercheap, Burson & Autobarn

Major Account Customers

10

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

The Automotive Aftermarket

Market Trends Favoring the Larger DIFM Segment (U.S. Market Size - Retail Pricing)

$0 $10 $20 $30 $40 $50 $60 $70

2011 2012 2013 2014 2015 2016* 2017* 2018* 2019* 2020*

DIFM DIY

Source: Frost & Sullivan 11

* Forecasted

billions

$71B* $28B*

$65B $27B

+2% 5-Yr CAGR +1% 5-Yr CAGR

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

Vehicle Fleet Trends

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

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+

$403 $484 $573 $644 $671 $741 $776 $829 $868 $861 $873 $857 $776 $802 $812

Annual Spend per Vehicle Vehicle Age

Consumers Are Maintaining Older Vehicles

12

Prime Years for Aftermarket Repair Start in Year 6

Vehicles 6+ Years of Age >75% of Fleet

• Avg. Repair

Cost/Year

1-5 Yr = $555 6-12 Yr = $829 > 12 Yr = $797

Source: IMR, Inc. Automotive Research, BB&T

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

Fundamentally Strong Aftermarket

 Total vehicle fleet growing

+2.1% in 2015 11.6 Years in 2015

$2.40/GL in 2015

2nd Lowest in 10 Years

+3.5% in 2015

to 3.1 Trillion Miles

 Average age of fleet increasing  Historical low gas prices  Miles driven reaching new peaks

13

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

Automotive Parts Group - Growth Opportunities

Key Areas of Focus NAPA Initiatives New Distribution

• Plans for New NAPA AUTOPARTS Stores in U.S., Canada

and Mexico; Expansion in Australia and New Zealand

NAPA AutoCare

• 16,700+ Independent AutoCare Members
• $1.3 Billion in 2015 Representing Mid-Single Digit Growth

Major Accounts

• $2.1 Billion in 2015 Representing Mid-Single Digit Growth

Outside Sales

• Adding Outside Sales Representatives at Stores

Connectivity

• Adding Installer Connectivity and Enhanced Capabilities

Special Markets

• Heavy Duty Parts, Import Parts, Paint, Tools & Equipment
• Acquired Olympus Imports & Global Heavy Duty in 2016

Store Resets & Upgrades

• Retail Impact Store Initiative
• Ongoing Program to Consistently Refresh and Upgrade Stores

14

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

NAPA AutoCare Center

15

The Aftermarket’s Preeminent Commercial Program for the Independent Repair Center

Before

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

NAPA Retail Store

16

Before

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

NAPA Retail Store – New Store Concept

17

After

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

• 546 Company owned stores
• Added 21 Covs stores in

Western Australia in 2016

NAPA Mexico

 Growth Plan Implemented in

Q4 2014

• 28 stores today.. and growing

18

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

Motion Industries – Industrial Parts Group

Industrial Parts Group Highlights

 Leading industrial parts MRO

distributor in North America

 TTM Sales at $4.6 billion (as of 9/30/16)

• 15 DC’s and 550+ branches and service

centers in the U.S., Canada and Mexico

 Proven track record with 70 years

in the industry

 Access to over 6.5 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

30%

Founded 1946 Acquired 1976

19

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

Quarterly Sales History

$400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200

• 2%
• 4%
• 2.5%

Sales Millions

2013 -0-%

2014 +8% 2015 -3%

+19% +18% +13% +12% +8% +4.5% +2%

• 2%
• 1% -2.5% +3%

+4% +7% Sales YOY +24% +10% 20 +10% +3%

• 8%

2011 +19% 2012 +7%

• 1%
• 2%

YTD

• 2%

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

 Suppliers: SKF, Baldor, Gates,

Rexnord, Timken and Eaton

 Customers represent all industry

groups, including Equipment & Machinery, Food Products, Iron & Steel, Pulp & Paper and Mining & Aggregate

Industrial Parts Group Overview

Sales by Product Category

Bearings & Power Transmission 38%

Industrial & Safety 16% Other 8% Hose 5% Hydraulics & Pneumatic 14% Electrical & Automation 11%

Major Competitors

Applied Industrial Technologies Kaman (Industrial Technologies Div.) DXP Enterprises

21

Material Handling 8%

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

Top Industries

Growing Sectors

 Food Products & Processing  Pulp and Paper  Chemical Products  Lumber & Wood Products  Aggregate & Cement  Rubber & Plastic Products

Lagging Sectors

 Equipment and Machinery  Iron and Steel  Automotive  Fabricated Metal Products  Equipment Rentals/Leasing  Oil & Gas Extraction

21

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

Industry Demand Drivers

0.0 1.0 2.0 3.0 4.0 5.0 6.0 2010 2011 2012 2013 2014 2015 16-SEP

• Mfg. Industrial Production

YOY Growth Rate

Generally Difficult Economic Environment

• Enhanced with Declines in Exports and Oil/Gas Sector -

22

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

 Acquisitions

• YTD 2016: Missouri Power, Epperson, Colmar,

OBBCO and Braas (10/1)

 Expansion in New Markets  Repair, Fabrication and Assembly  E-Commerce  Vending, VMI and Store Room Mgmt  Share Gains with Major Accounts

Only 7% share of market – estimated at $70 billion

24

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

Office Products Group Highlights

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

distributor of business products, office furniture and computer supplies

 TTM Sales at $2.0 billion (as of 9/30/16)

• 45 DC’s in U.S. and Canada

 Long history of serving the independent

reseller and “mega” dealer

 Access to over 62,000 products

• >500 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

13%

Founded 1848 Acquired 1975

25

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

Quarterly Sales History

$300 $325 $350 $375 $400 $425 $450 $475 $500

• 2%
• 1%
• 1%

+3% +4% Sales YOY +5%

• 3%

Sales Millions

+4% +3%

• 1%

2013 -3% 2011 +3% 2012 -0-% 2014 +10%

• 1%
• 3%

2015 +7.5%

• 3%
• 4%
• 0-

+15% +22% 26 +17% +14% +3%

• 2%

+1% YTD

+5% +1%

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

Office Products Group Overview

 Suppliers: Hewlett Packard, 3M, Hon,

Newell, Kimberly Clark, Georgia Pacific..

 Customers: Serves > 6,300 business

product resellers and superstores Primary Sales Channels

Independent Resellers 66% Internet Reseller 6% Mega Dealers 22%

Major Competitors

Essendant (formerly United)

27 Alternate Channel 6%

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

PRODUCT MIX

26% 40% 19% 15%

2015

Office Supplies FBS Furniture Tech

32% 47%

8% 13% 2010

17% 27% 41% 15%

2020 (Est)

Drive for Diversification

Initiatives to Diversify Product Offering are Significantly Increasing Facility & Breakroom Supply Sales

27

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

Demand Drivers Relatively Stable, but Also Mixed..

100 200 300 400 500 600 700 Q3'12 Q1'13 Q3'13 Q1'14 Q3'14 Q1'15 Q3'15 Q1'16 Q3'16

Service-Providing Employment

Source: BLS.gov

• 4.5M in 08/09

+1.3M in 10 +2.0M in 11 & 12 +2.0M in 2013 +2.3M in 2014

2015 Strongest Growth in New Jobs in Recent History

U.S. GDP and Employment Levels

2.5M New Jobs in 2015

29

• 1.0

0.0 1.0 2.0 3.0 4.0 5.0 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14 Q2'15 Q4'15 Q2'16

U.S. GDP (% Change)

Source: BEA.gov

• 3.1% in 09

+2.2% in 12 +2.5% in 10 +1.6% in 11

2015 Another Year of Tepid GDP Growth at 2.4%

(2nd straight year)

+1.4% in Q2’16 +1.5% in 13 +2.4% in 14 & 15 +1.5M thru Sep 2016

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

Office Products Group

Growth Opportunities

 Market Share Initiatives  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 (6/1) and RMC (7/1) in 2016

Low percentage share of market – estimated at $100+ billion (Retail)

30

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

Electrical Markets Group Highlights

 EIS is a leading distributor of electrical,

industrial and specialty products

 TTM Sales at $715 million (as of 9/30/16)

• 50 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

 Focus on several growth initiatives, including

new products, new fabrication opportunities and new services

4% Founded 1950 Acquired 1998

31

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

$- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200

+5% +5%

2011 +24% 2012 +5% 2013 -2% 2014 +30% 2015 +2%

Sales Millions

Sales YOY +39%

• 3%

+28% +22% +10% +9%

• 2%
• 4%
• 5%
• 5%

+6% +30% +32% +23% +35%

Quarterly Sales History

32 +1%

+4% +2%

• 0-
• 6%

YTD

• 9%
• 5%

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

Electrical Markets Group – Overview

 Access to over 100,000 products:

• 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:

• First Solar
• General Electric
• Baldor
• Emerson
• Eaton

Major Competitors

Essex/Brownell

(a Division of Superior Essex)

Anixter Houston Wire & Cable

Suppliers

33

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

Evolving Sales Composition

75% 20% 5%

2010

Electrical/Electronic Fabrication Wire & Cable

Initiatives Focused on Growth Opportunities in Fabrication and Wire & Cable Markets

41% 32% 27%

2015

29% 33% 38%

2020 (Est)

33

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

Electrical Markets Group

Demand Drivers Pressuring Expansion

• Mfg. Contraction in Q4 2015 Followed by Expansion Thus Far in 2016 -

Institute for Supply Management - Purchasing Managers Index

50

35

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

Electrical Markets Group

Growth Opportunities

 Market Share Initiatives

• Product Line Expansion
• New Products
• Enhanced Services

 Market Expansion/Share Gains

• Fabrication & Coating
• Cable & Connectivity

 Acquisitions

• CPS (10/1)

7% share of market – estimated at $10.0 billion

36

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

Drivers and Opportunities

Demand Drivers Opportunities and Initiatives

Automotive

• Total vehicles > 6 years old
• Complexity of vehicles/ # Trucks & SUV’s
• Average age of cars & light trucks
• Gas Prices/Miles driven on roads each

year

• 8-9% share of market – est. at $100+ billion (Retail)
• Approx. 500,000+ Products & Tens of Thousands
• f Customers
• New Distribution, NAPA AutoCare, Major A/C’s, O/S Sales,

Connectivity, Niche Markets – Heavy Duty, Imports, Paints and Tools & Equipment, Store Resets and Retail initiatives Industrial

• Manufacturing industrial production
• Capacity utilization rates
• Capital expenditure budgets/expansion
• Manufacturing employment in U.S.
• 7% share of market – estimated at $70 billion
• Approx. 6.5 million Products & > 150,000 Customers
• Growth via product line expansion, acquisitions and

targeted industries – e.g. Waste Water Treatment, Power Generation, Municipalities and Transportation & Ports Office Products

• U.S. gross domestic product (GDP)
• White collar employment numbers
• Office occupancy rates in U.S.
• Low percentage share of market – est. $100+ billion (Retail)
• More than 62,000 Products & Approx. 6,300 Customers
• Growth via market share initiatives, product line expansion

(including proprietary brands), new products, enhanced marketing/electronic content and new or alternate channels via FBS diversification Electrical Markets

• Manufacturing expansion (ISM’s PMI)
• Capacity utilization rates
• 7% share of market – estimated at $10 billion
• Over 100,000 Products & > 20,000 Customers
• Growth via new products, new markets & acquisitions

(including fabrication & coating and cable & connectivity market expansion opportunities)

37

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

Financial Focus

Recent Financial Highlights

Q3 2016 9-Mos 2016 2016

• v. '15

2016

• v. '15

Net Sales (billions) $3.94 +0.5% $11.56

• Net Income (millions)

$185 (1%) $535 (2%) Diluted EPS $1.24

• $3.56
• 38

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

7.0 7.3 7.5 7.8 8.0 8.3 8.5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD 2016

Positive Operating Margin Trend

Targeting Further Expansion to 8.5-9.0% Operating Margin 8.2% 8.1%

39

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

 Strong cash position

• Approx. $225 million at September 30, 2016

 Prudent working capital management

• Improving working capital efficiency and cash conversion cycle

 Solid after-tax return on invested capital (ROIC)

• 16% ROIC for 12-Mos ending September 30, 2016

 High after-tax return on assets (ROAA)

• Consistently > 8%

 Comfortable with capital structure

• Consistently low debt to total capitalization

Financial Focus

Balance Sheet Highlights

40

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

Financial Focus – Capital Structure

41

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

Debt Trend (In millions)

Total Debt to Total Capitalization 18.9%

Historically Low Debt Levels

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

0.0 5.0 10.0 15.0 20.0 25.0 30.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 16-Sep

Improving W/C Efficiency Trends

25.2% 13.0% W/C Eff. Steady and consistent improvement and positioned to further improve with effective asset management and sales and earnings growth

42

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

Improvement in Working Capital

43

DIO - 127 DIO - 103 DPO - 39 DPO - 100 DSO - 45 DSO - 47

20 40 60 80 100 120 140 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

DSO DIO DPO

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

…..Compressed CCC

44

CCC - 133 CCC - 50

50 60 70 80 90 100 110 120 130 140 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CCC

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

6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0

Return On Invested Capital

Continue to target investments with > 15% ROIC

16.3% 13.5%

45

ROIC WACC

Approx. 10% Spread

9.0% 6.6%

Consistently Exceeding WACC

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

Steady and Strong Cash Flows

150 300 450 600 750 900 1,050 1,200 2011 2012 2013 2014 2015 2016 (est) Free Cash Flow Capital Expenditures Dividend Payout

$950 Mil

$425M $140M $385M 46

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

47

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

Recent Acquisitions

2015

5

4 Store Groups AEA

4

Miller, Oil & Gas Lake Erie, Moss

1

Connect-Air

3

JAL, Dinesol Malt

2016

11

Olympus, Covs, Global, AMX, Auto-Camping, ASL, 5 Store Groups

5

Epperson, MO Power, Colmar, OBBCO, Braas

1

CPS

2

Safety Zone, RMC Jan/San

Will Remain Active in Seeking Additional Acquisitions

47

$180M $600M

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

Commitment to Shareholders

0.5 1 1.5 2 2.5 3

2016

Dividend Record

2016 Annual Dividend $2.63 3% Yield and +7% from 2015 60 Consecutive Years of Increased Dividends

49

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

Commitment to Shareholders

Share Repurchases History

4.6 Million Shares Remaining to be Repurchased (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 YTD 1.7 155.0 TOTAL 55.4 $2,374.7 Consistent History Of Returning Cash To Shareholders

50

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

Commitment to Shareholders

5-Year Returns to Shareholders

2011 2012 2013 2014 2015 Dividends $276.4 $301.0 $326.2 $347.3 $368.3 Share Repurchases 122.1 81.8 120.6 95.9 292.3 Total 398.4 382.8 446.8 443.2 660.6

• Approx. $2.3 Billion Returned to

Shareholders Over 5 Years

50

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

GPC Accomplishments & Objectives

• Sales – Flat YOY
• Operating Margin – (30) Bps
• Earnings per Share - Flat
• Cash from Operations on

target for $900M - $1B

• W/C Improved by 19%

Status Report Nine-Mos 2016

• Improve Sales by 6-8%
• Increase Operating Margin
• Grow EPS by 7-10%
• Generate Solid Cash Flows
• Maintain Strong Bal. Sheet

Key Long Term Annual Objectives

52

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

2016 Periods Ending December 31, 2015

thru 9/30/16 1 YEAR 3 YEAR 5 YEAR 7 YEAR 10 YEAR

17.0%

• 17.4%

13.6% 14.1% 16.2% 10.6% 6.1% 1.4% 15.1% 12.6% 14.8% 7.3% 5.1% 0.2% 12.7% 11.3% 13.3% 7.8% 6.1% 7.0% 19.8% 14.9% 19.3% 9.7%

Total Return to Shareholders

53

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

0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 110.00 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15

P/E Stock Price EPS Dividend

Market Capitalization $12.9 Billion @ December 31, 2015

P/E, Stock Price, EPS & Dividend Trends

54

$14.9 Billion @ Sept 30, 2016

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 - VP IR: 678-934-5628 Sid_jones@genpt.com