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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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
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
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
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.
Leading global distributor in diversified end
Proven track record of steady growth Strong balance sheet with meaningful free
Committed to increasing shareholder value Opportunity for market share growth in large
Large customer base built upon
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Founded in 1928 Leading distributor to four
primary end-markets:
Critical partner to
distribution efficiencies
consumable/replacement items
% Net Sales by Segment 12-Mos. Ended December 31, 2016
$15.3 Billion Annual Sales
13% 30% 4% 53%
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
Common Distribution Processes
transportation
We consistently challenge ourselves to support how GPC is the “optimal” owner/operator of our portfolio businesses
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
1925 1928 1948 1968 1975 1976 1998 1999 2010- 2014 2013
IPO Established
Traded On NYSE: GPC
Founded Acquired Acquired Acquired Acquired Record Sales & Earnings Acquired Acquired
Strong history of sales & profit growth
Dividend growth
consecutive year of dividend increases
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
7.5 8.5 9.5 10.5 11.5 12.5 13.5 14.5 15.5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 +9.0%
$ Billions
EPS +8% EPS
EPS
EPS +20% EPS +19% EPS +16% EPS +6%* EPS +10%* EPS +0.4%
+3.7% +1.6%
+11.4% +11.2% +4.5% +8.2%
Record Sales & Earnings Per Share in 7 of Last 10 Years
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* Comparative Results
EPS
+0.4%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Largest auto parts network in North America 2016 Sales at $8.1 billion
11 DC’s & 550 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
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
$- $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25
2013 +18.5% 2012 +4% 2015 -1% (+4% ex Fx)
Sales Billions
+2% +6% +4% +2% +5% +3% +22% +23% +4% +25% +22% +5% +4% 9
2014 +8%
+3%
+2% +1%
2016 +1%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
(90%) NAPA branded products NAPA Know How Differentiators:
Commercial/DIFM customers
17,000+ NAPA AutoCare Centers Major Accounts: AAA, Goodyear,
Firestone, TBC, Midas, CBAdvantage
Retail/DIY customers
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.
$0 $15 $30 $45 $60 $75
2011 2012 2013 2014 2015 2016 2017* 2018* 2019* 2020*
DIFM DIY
Source: Frost & Sullivan/ACA 11
* Forecasted
billions
$75B* $32B*
$30B
+3% 5-Yr CAGR +1% 5-Yr CAGR
$67B
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
$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
12
Prime Years for Aftermarket Repair Start in Year 6
Vehicles 6+ Years of Age >75% of Fleet
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.
Total vehicle fleet growing
+1 to 2% thru 2020 11.6 Years
$2.25/GL in 2016
Down 10% from 2015
+2.8% in 2016
Average age of fleet increasing Historical low gas prices Miles driven reaching new peaks
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Key Areas of Focus NAPA Initiatives New Distribution
Standard and Olympic Store Groups
NAPA AutoCare
Major Accounts
Outside Sales
Connectivity
Special Markets
Duty in 2016
Store Resets & Upgrades
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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The Aftermarket’s Preeminent Commercial Program for the Independent Repair Center
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Market Share Leader in
Growth Plan for Company
Owned and Independent NAPA AUTOPARTS Stores
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Industrial Parts Group Highlights
Leading industrial parts MRO
distributor in North America
2016 Sales at $4.6 billion
centers in the U.S., Canada and Mexico
Proven track record with over 70
years in the industry
Access to over 6.9 million products
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
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
$400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200
Sales Millions
2013 -0-%
2014 +8% 2015 -3%
+12% +8% +4.5% +2%
+4% +7% +10% +3% 20 +10%
+2%
2012 +7%
+4%
+7%
2016 -0-
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
Sales by Product Category
Bearings & Power Transmission 37%
Industrial & Safety 17% Other 4% Seals, Pumps & Hose 8% Hydraulics & Pneumatic 14% Electrical & Automation 11%
Major Competitors
Applied Industrial Technologies Kaman (Industrial Technologies Div.) DXP Enterprises
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Material Handling 9%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Growing Sectors
Equipment and Machinery Food Products & Processing Iron and Steel Fabricated Metal Products Aggregate & Cement Chemical Products Equipment Rentals/Leasing Oil & Gas Extraction
Lagging Sectors
Pulp and Paper Automotive Lumber & Wood Products Rubber & Plastic Products
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Data for 3-mos 2017
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
0.0 1.0 2.0 3.0 4.0 5.0 6.0 2010 2011 2012 2013 2014 2015 2016 Q117
YOY Growth Rate
23
%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Growth Opportunities
Product Category Expansion
Acquisitions
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
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
S.P Richards is the nation’s second largest
distributor of business products, office furniture, computer supplies and facilities, breakroom and safety supplies
2016 Sales at $2.0 billion
Long history of serving the independent
reseller and national accounts
Access to over 69,000 products
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
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
$300 $325 $350 $375 $400 $425 $450 $475 $500
+5%
Sales Millions
+3%
2013 -3% 2012 -0-% 2014 +10%
+15%
2015 +7.5%
+4% +22% +17% +14% 26 +3%
+1% +4% +9%
2016 +2%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Suppliers: Hewlett Packard, 3M, Hon,
Newell, Kimberly Clark, Georgia Pacific..
Customers: Serves > 9,300 business
product resellers and superstores Primary Sales Channels
Independent Resellers 59% Internet Reseller 6% Nat’l Accounts 22%
Major Competitors
Essendant (formerly United)
27 Alternate Channel 13%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
22% 37% 26% 15%
2016
Office Supplies FBS Furniture Tech
32% 47%
8% 13% 2010
17% 27% 41% 15%
2020 (Est)
Initiatives to Diversify Product Offering are Significantly Increasing Facility, Breakroom & Safety Supply Sales
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
100 200 300 400 500 600 700 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14 Q2'15 Q4'15 Q2'16 Q4'16
Service-Providing Employment
Source: BLS.gov
1M+ in 2010 2M+ in 2011 - 2016
Steady and Consistent New Job Growth for last 5 Years
2.0M New Jobs in 2016
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0.0 1.0 2.0 3.0 4.0 5.0 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14 Q2'15 Q4'15 Q2'16 Q4'16
U.S. GDP (% Change)
Source: BEA.gov
+2.2% in 12 +2.5% in 10 +1.6% in 11
Tepid GDP Growth in 2016 at 1.6%
+1.6% in 2016 +1.5% in 13 +2.4% in 14 & 15 December 2016 Unemployment Rate at 4.7%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Market Share Initiatives Product Line Expansion New Products Private Brand Expansion Enhanced Dealer Services/
Marketing & Electronic Content
FBS and Alternate Channel
Growth
Low percentage share of market – estimated at $100+ billion (Retail)
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
EIS is a leading distributor of electrical,
industrial and specialty products via three business groups:
2016 Sales at $716 million
Dominican Republic
Highly developed supply chain Long-standing partnerships Sophisticated information technology
and e-business capabilities
Knowledgeable employees with
product, technical and service solutions
4% 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%
2012 +5% 2013 -2% 2014 +30% 2015 +2%
Sales Millions
+9%
+6% +30% +32% +23% +35%
32 +1% +4% +2%
2016 -5%
+5
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Access to over 100,000 products:
More than 20,000 customers in the
Electrical/Electronic, Fabrication & Coating and Specialty Wire & Cable markets, such as:
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.
75% 20% 5%
2010
Electrical/Electronic Fabrication Wire & Cable
Initiatives Focused on Growth Opportunities in Wire & Cable Markets
38% 26% 36%
2017 (Est)
33% 22% 45%
2020 (Est)
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Index Supportive of Industry Growth
Institute for Supply Management - Purchasing Managers Index
50
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Market Share Initiatives
Market Expansion/Share Gains
Acquisitions
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Both for Wire & Cable
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Demand Drivers Opportunities and Initiatives
Automotive
year
Connectivity, Niche Markets – Heavy Duty, Imports, Paints and Tools & Equipment, Store Resets and Retail initiatives Industrial
targeted industries – e.g. Waste Water Treatment, Power Generation, Municipalities and Transportation & Ports Office Products
(including proprietary brands), new products, enhanced marketing/electronic content and new or alternate channels via FBS diversification Electrical Markets
(including fabrication & coating and cable & connectivity market expansion opportunities)
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Q1 2017 2016 2017
2016
Net Sales (billions) $3.91 +5% $15.34 +0.4% Net Income (millions) $160 +1% $687 (3%) Diluted EPS $1.08 +3% $4.59 (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 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Targeting Further Expansion to 8.5-9.0% Operating Margin 8.0% 8.1%
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Strong cash position
Prudent working capital management
Solid after-tax return on invested capital (ROIC)
High after-tax return on assets (ROAA)
Comfortable with capital structure
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$0 $200 $400 $600 $800 $1,000
Debt Trend (In millions)
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 2016
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
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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DIO - 127 DIO - 104 DPO - 39 DPO - 101 DSO - 45 DSO - 46
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.
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CCC - 133 CCC - 49
40 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
Continue to target investments with > 15% ROIC
16.0% 14.6%
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Approx. 10% Spread
8.0% 6.6%
Consistently Exceeding WACC
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
150 300 450 600 750 900 1,050 1,200 2012 2013 2014 2015 2016 2017 e Free Cash Flow Capital Expenditures Dividend Payout
$950 Mil
$400M $155M $395M 46
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Reinvestment in
Acquisitions Dividends Share Repurchases
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
5
4 Store Groups AEA
4
Miller, Oil & Gas Lake Erie, Moss
1
Connect-Air
3
JAL, Dinesol Malt
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
3
Merles, Olympic, Standard (+26 new stores)
1
35% investment in Inenco (Australia)
1
Empire
Will remain active in seeking additional acquisitions
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$180M $600M $140M
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
0.5 1 1.5 2 2.5 3
2017
2017 Annual Dividend $2.70 3% Yield and +3% from 2016 61 Consecutive Years of Increased Dividends
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
3.2 Million Shares Remaining to be Repurchased at March 31, 2017
Consistent History Of Returning Cash To Shareholders
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(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 – Q1 2017 1.1 98.9 TOTAL 56.8 $2,500.0
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
2012 2013 2014 2015 2016 Dividends $301.0 $326.2 $347.3 $368.3 $386.9 Share Repurchases 81.8 120.6 95.9 292.3 181.4 Total 382.8 446.8 443.2 660.6 568.3
Shareholders Over 5 Years
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
$900M-$1B Targeted Range
2017 Outlook
Key Long Term Annual Objectives
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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%
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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 00 02 04 06 08 11 12 14 16
P/E Stock Price EPS Dividend
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Contact Information:
Carol Yancey - EVP & CFO: 678-934-5044 Carol_yancey@genpt.com Sid Jones - SVP IR: 678-934-5628 Sid_jones@genpt.com