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

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

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


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

Investor Presentation

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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.

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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

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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, 2015

$15.4 Billion

#1 or #2 in Every Segment 13% 30% 5% 52%

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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

GPC Record Sales & Earnings 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 65 years
  • Profit has increased in 50 of the last 54 years

1925 1925 1945 1945 1955 1955 1965 1965 1975 1975 1985 1985 1995 1995 2005 2005 2014 2014

 Dividend growth

  • 2015 marks GPC’s 59th

consecutive year of dividend increases

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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

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

+9.0%

Profit +11%

$ Billions

Profit +9% Profit +6.5% Profit

  • 6%

Profit

  • 16%

Profit +19% Profit +19% Profit +16% Profit +6%* Profit +10%*

+7.5% +6.9% +3.7% +1.6%

  • 8.7%

+11.4% +11.2% +4.5% +8.2% Record Sales and EPS in 2014 ** 5th Consecutive Year **

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* Comparative Results

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

Automotive Parts Group Highlights

 Largest auto parts network in North America  September 2015 TTM Sales at $8.1 billion

  • US: 60 DC’s & ~ 6,000 stores (1,100 Co. owned)
  • Canada:12 DC’s & ~ 700 stores (200 Co. owned)
  • Mexico: 12 DC’s & 27 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 & 500 Store footprint in

Australia and New Zealand

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

industry trends

52%

NAPA Established 1925

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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-

2011 +8% 2009 -2% 2010 +7% 2013 +18.5% 2014 +8%

Sales Billions

  • 5% -1%

+6% +6% +7% +7% +9% +9% +9% +9% +6% +6% +4% +2.5% +5% +3% +22% +23% +4%

Sales YOY

+25% +22%

  • 7%

+5% +4%

8

  • 0-

YTD 2015

  • 1%

2012 +4%

  • 2%
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.

Automotive Parts Group Overview

 Sell primarily (90%) NAPA

branded products to the automotive aftermarket

 Differentiators: product

quality and breadth, service capabilities & technology offering

 Commercial/DIFM customers

represent professional service repair facilities and account for 70-75% of NAPA sales

 16,000+ NAPA AutoCare Centers  Major Accounts: AAA, Goodyear,

Firestone, TBC, Midas, CBAdvantage

 Retail/DIY customers represent the

individual consumer and account for 25-30% 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

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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 10

* Forecasted

billions

$71B* $28B*

$64B $26B

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

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

The Vehicle Fleet

40 80 120 160 200 240 280

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2020

128 127 126 125 125 123 122 120 119 120 279 115 120 123 127 128 127 128 129 130 132 7 7 8 8 8 8 8 8 7 8 Vehicles in Millions

Heavy Light Trucks Cars

Steady and Consistent Trend Total Vehicle Registrations

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1%+ CAGR Estimated thru 2020

260M Vehicles in 2014 +1.5% YOY

Source: Auto Care Association, BB&T

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

Average Age of Vehicles Increasing

8 8.5 9 9.5 10 10.5 11 11.5 12

Light Trucks Passenger Cars

  • Passenger Cars 11.9 Years
  • Light Trucks 11.8 Years

2015 Average Age All Light Vehicles 11.9 Years

Source: Auto Care.Org / Lang Marketing 12

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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

13

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

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

Vehicle Miles Driven

2.50 2.60 2.70 2.80 2.90 3.00 3.10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TTM 8/15

2.99 3.01 3.03 2.98 2.96 2.97 2.95 2.95 2.97 3.00 3.11

Annual Miles in Trillions

Historical Peak New Peak

Miles Driven in U.S. – Strengthening Trends

Miles Driven: +3.4% YTD 2015 thru August

3.1T Historical Positive Correlation for Industry

Source: US DOT 14

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

Stable Gas Prices = More Miles Driven

~ Industry can absorb gradual price increases, but sharp spikes can have an impact ~

Gas Prices v. Miles Driven

  • 6%
  • 4%
  • 2%

0% 2% 4% 6%

  • 50%
  • 40%
  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 50%

Gas Prices & Miles Driven - % Change from Same Mo. Prior Year Gas Miles

Miles Gas Prices

Source: US DOT/EIA 15

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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; Expansion in

Australasia and at NAPA Mexico

NAPA AutoCare

  • 16,000+ Independent AutoCare Members
  • Approx. $1.2 Billion in 2014 & 10%+ Growth

Major Accounts

  • Nearly $1.9 Billion in 2014 & 10%+ Growth

Outside Sales

  • Adding Outside Sales Representatives

Connectivity

  • Adding Installer Connectivity

Special Markets

  • Heavy Duty Parts, Import Parts, Paint, Tools & Equipment

Store Resets & Upgrades

  • Ongoing program to consistently refresh and upgrade stores

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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

  • 500 Company owned

stores today

NAPA Mexico

 October 2014 Grand Opening

  • 19 stores today

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

NAPA Retail Store

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Before

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

NAPA Retail Store – New Store Concept

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After

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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

 September 2015 TTM Sales at $4.7 billion

  • 15 DC’s and 562 branches and service

centers in the U.S., Canada and Mexico

 Proven track record with nearly

70 years in the industry

 Efficient supply chain and

vendor partnerships

 High customer service levels

and technical sales support

 Industry leading E-Business capabilities  Access to over 5.6 million products

  • Global manufacturing base

 Very large and fragmented industry

30%

Founded 1946 Acquired 1976

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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%

Sales Millions 2011 +19% 2009 -18% 2010 +22% 2012 +7% 2013 -0-% 2014 +8%

  • 16%
  • 22% -22%
  • 11%

+9% +26% +29% +24% +19% +18% +13% +12% +8% +4.5% +2%

  • 2% -1% -2.5%

+3% +4% +7% Sales YOY +24% +10% 21

YTD 2015

  • 1%

+10% +3%

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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 39%

Industrial & Safety 15% Other 9% Hose 5% Hydraulics & Pneumatic 14% Electrical & Automation 10%

Major Competitors

Applied Industrial Technologies

Kaman (Industrial Technologies Div.) DXP Enterprises

22

Material Handling 8%

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

Top Industries

Industrial Parts Group

 OEM  Food Products  Pulp & Paper  Iron & Steel  Fabricated

Metals

 Automotive  Chemicals & Allied Products  Coal, Aggregate & Cement  Lumber & Wood  Rubber & Plastic Products  Utilities  Ports  Rail

Growth Industries

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

Industrial Parts Group

60.00 65.00 70.00 75.00 80.00 85.00 90.00 95.00 100.00 105.00

Industry Demand Drivers Relatively Stable

  • Mixed Signals thus far in 2015 -

105.8 76.1

Manufacturing Industrial Production Manufacturing Capacity Utilization

Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15

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

Industrial Parts Group

Growth Opportunities

 Product Category Expansion

  • Automation
  • Process Pumps
  • Safety

 Acquisitions

  • (CSI, Miller Bearing & Lake Erie)

 Growth Industries  Repair, Fabrication and Assembly  E-Commerce  Vending, VMI and Store

Room Management

Only 6% share of market – estimated at $70 billion

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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

 September 2015 TTM Sales at $1.9 billion

  • 44 DC’s in U.S. and Canada

 Long history of serving the independent

reseller and “mega” dealer

 Access to over 55,000 products

  • >500 leading manufacturers
  • Global sourcing includes 8

proprietary product brands

 Superior fill rates, accurate and timely

shipments and competitive pricing

 Database management,

logistical support, e-commerce and a comprehensive array of marketing programs

13%

Founded 1848 Acquired 1975

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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

  • 7%
  • 6%
  • 4%
  • 1%
  • 5%
  • 1%

Sales Millions

  • 0-

+3% +5% +4% +3%

  • 1%

2011 +3% 2009 -5% 2010 -0-% 2012 -0-%

  • 1%
  • 3%

2013 -3%

  • 3%
  • 4%

2014 +10%

  • 0-

+15% +22% 27 +17%

YTD 2015 +11%

+14% +3%

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

Office Products Group Overview

 Suppliers: Hewlett Packard, Avery

Dennison, 3M, Smead, Fellowes and HON

 Customers: Thousands of business

product resellers

  • 80% of sales to Independent Dealers
  • 20% of sales to National A/C’s

Major Sales Categories

Office Supplies 41% Tech Products 28% Facility/Breakroom Solutions 17% Office Furniture 14%

Major Competitors

Essendant (formerly USTR)

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

Demand Drivers Relatively Stable, but Lagging

100 200 300 400 500 600 700 Q3'11 Q1'12 Q3'12 Q1'13 Q3'13 Q1'14 Q3'14 Q1'15 Q3'15

Service-Providing Employment

Source: BLS.gov

  • 4.5M in 08/09

+1.3M in 10 +2.0M in 11 & 12 +2.1M in 2013 +2.4M in 2014

Total Workers in 2014 Back to 2007 Levels

U.S. GDP and Employment Levels

1.6M New Jobs thru

  • Sept. 2015

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  • 2.0
  • 1.0

0.0 1.0 2.0 3.0 4.0 5.0 Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14 Q2'15

U.S. GDP (% Change)

Source: BEA.gov

  • 3.1% in 09

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

Strengthening Trend in Q2 After Slow Start in Q1 2015

+3.9% in Q2’15 +1.5% in 13 +2.4% in 14

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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 Marketing and

Electronic Content

 Alternate Channel Growth

  • GCN, Impact, JAL & Malt

Acquisitions

Only 5% share of market – estimated at $60 billion (Retail)

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

Drive for Diversification

31 Office Supplies 41% Tech Products 28% Facility/Breakroom Solutions 17% Office Furniture 14% Office Supplies 52% Tech Products 28% Facility/Breakroom Solutions 4% Office Furniture 16%

Major Sales Categories

2000 2014

Initiatives to Diversify Product Offering have Reduced Sales

  • f Traditional Office Supplies as a Percent of Total Sales
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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

 September 2015 TTM Sales at $750 million

  • 56 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

5% Founded 1950 Acquired 1998

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

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

+5% +5%

2009 -26% 2010 +30% 2011 +24% 2012 +5% 2013 -2% 2014 +30% Sales Millions

Sales YOY

  • 25%
  • 34%
  • 30% -12%

+16% +32% +31% +40% +39% +28% +22% +10% +9%

  • 2%
  • 4%
  • 5%
  • 5% +6%

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

Quarterly Sales History

33 +1%

YTD 2015 +2%

+4% +2%

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

Electrical Markets Group – Overview

 Access to over 100,000

products, including:

  • Magnet Wire, Pressure Sensitive Tapes,

Solder & Chemicals, Wire and Cable, Varnishes & Resins, Hand Tools, Industrial MRO Materials and Value Added Fabricated Parts

 Customers: More than 20,000

customers in the Electrical/Electronic, Fabrication & Coating and Specialty Wire & Cable markets, such as:

  • General Electric, Baldor, First Solar,

Emerson, Northrup Grumman, Square D, Celestica, Hewlett Packard and Flextronics

Major Competitors

Essex/Brownell

(a Division of Superior Essex)

Anixter Houston Wire & Cable

Suppliers

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

Electrical Markets Group

Demand Drivers Showing Mfg. Expansion

Institute for Supply Management - Purchasing Managers Index

50

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

Electrical Markets Group

Growth Opportunities

 New Products  New Markets  Acquisitions

  • Electro-Wire
  • IWI
  • Connect-Air

7% share of market – estimated at $10.0 billion

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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. 475,000 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 Upgrades Industrial

  • Manufacturing industrial production
  • Capacity utilization rates
  • Capital expenditure budgets/expansion
  • Manufacturing employment in U.S.
  • 6% share of market – estimated at $70 billion
  • Approx. 5.6 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.
  • 5% share of market – est. at $60 billion (Retail)
  • More than 55,000 Products & Approx. 4,300 Customers
  • Growth via market share initiatives, product line expansion

(including proprietary brands), new products, private brand expansion, enhanced marketing/electronic content and new

  • r alternate channels

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 (including wire & cable and

new fabrication opportunities), new markets & acquisitions

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

Financial Focus

Recent Full Year Financial Highlights

Record Sales and Earnings in 2014 2014 2013 2014

  • v. '13

2013

  • v. '12

Net Sales (billions) $15.34 +9% $14.08 +8% Net Income (millions) $711 +9%* $685 +6% Diluted EPS $4.61 +10%* $4.40 +6%

* Comparative Results

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

3rd Qtr and YTD 2015 Financial Results

Moderating Sales and Earnings Trends in 2015

3rd Quarter Nine Months 2015

% Change

2015

% Change

Net Sales (billions) $3.92

  • 2%

$11.60 +1% Net Income (millions) $188

  • 1%

$544 0% Diluted EPS $1.24 0% $3.56 +1%

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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

Operating Margin

Continue to Target 8.0-8.5% Operating Margin 8.5% 8.1%

40

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9-Mos 2015

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

 Strong cash position

  • Approx. $200 million at September 30, 2015

 Prudent working capital management

  • Continuous improvement in working capital levels

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

  • 16.0% ROIC for 12-Mos ending September 30, 2015

 High after-tax return on assets (ROAA)

  • 8.5% for at September 30, 2015

 Comfortable with capital structure

  • 16.5% total debt to total capitalization at September 30, 2015

Financial Focus

Balance Sheet Highlights

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

$0 $100 $200 $300 $400 $500 2015 2016 2017 2018 2019 2020 2021 2022 2023 $125 $250 $0 $0 $0 $0 $0 $0 $250

Debt Trend

Financial Focus – Capital Structure

Maturity Schedule

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

$893 $792 $678 $500 $765 $625

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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 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

ROAA W/C Efficiency

W/C Efficiency and ROAA Trends

Source: AAIA / R.L. Polk & Co.

26.1% 13.8% ROAA 14.4% 13.6% W/C Eff. Positioned to further improve with effective asset management and sales and earnings growth

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Steady Return on Assets and improving Working Capital Efficiency

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

Improvement in Working Capital

44

DIO - 127 DIO - 100 DPO - 39 DPO - 90 DSO - 45 DSO - 46

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

DSO DIO DPO

YTD

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

…..Compressed CCC

45

CCC - 133 CCC - 56

55 65 75 85 95 105 115 125 135 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CCC

YTD

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

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

16.0% 13.5%

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

Financial Focus – Strong Cash Flows

100 200 300 400 500 600 700 800 900 1,000 1,100 2010 2011 2012 2013 2014 2015 Est Free Cash Flow Capital Expenditures Dividend Payout

$950M

$450M+ $110M $370M 47

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

Commitment to Shareholders

Priorities for Cash

 Dividends  Reinvestment in

Businesses

 Share Repurchases  Acquisitions

48

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

Commitment to Shareholders

0.5 1 1.5 2 2.5

2015

Dividend Record

2015 Annual Dividend $2.46 2.6% Yield and +7% from 2014 59 Consecutive Years of Increased Dividends

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

Commitment to Shareholders

Share Repurchases History

7.1 Million Shares Remaining to be Repurchased (in millions)

# Shares Cash Paid 1994 – 2004 24.0 $649.9 2005 – 2009 18.2 782.3 2010 – 2013 7.1 399.4 2014 1.1 95.9 YTD thru 9-Mos 2015 2.5 225.1 TOTAL 52.9 $2,152.6 Consistent History Of Returning Cash To Shareholders

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

GPC Accomplishments & Objectives

  • Sales Growth of 1%

(+4% ex Fx)

  • Operating Margin up 10 Bps
  • Earnings per Share up 1%

(+4% ex Fx)

  • Strong Cash Flow Generation
  • Strengthened Bal. Sheet

Status Report thru 9-Mos in 2015

  • 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

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

Total Return to Shareholders

Periods Ending December 31, 2014

Compound Average

1 YEAR 3 YEAR 5 YEAR 7 YEAR 10 YEAR GPC

31.4% 23.8% 26.9% 16.6% 12.9%

S&P 500

13.7% 20.4% 15.5% 7.3% 7.7%

DOW JONES

10.0% 16.3% 14.2% 7.2% 7.9%

NASDAQ

14.8% 23.6% 17.2% 9.8% 9.2%

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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 80 82 84 86 88 90 92 94 96 98 2 4 6 8 10 12 14

P/E Stock Price EPS Dividend

Market Capitalization $16.3 Billion @ December 31, 2014 $12.8B @ 12/31/13 & $10B @ 12/31/12

P/E, Stock Price, EPS & Dividend Trends

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

Thank You!

Contact Information:

Carol Yancey - EVP & CFO: 770-612-2044 Carol_yancey@genpt.com Sid Jones - VP IR: 770-818-4628 Sid_jones@genpt.com