industrial deep dive

Industrial Deep Dive

September 15, 2021

Forward-Looking StatementsSome of the comments made during this webcast and information contained in our presentation constitute forward-looking statements that are subject to thesafe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words suchas “expect,” “likely,” “outlook,” “forecast,” “preliminary,” “would,” “could,” “should,”, “position”, “will,” “project,” “intend,” “plan,” “on track,” “anticipate,” “to come,”“may,” “possible,” “assume,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include theCompany’s view of business and economic trends for the remainder of the year, the Company’s ability to execute our strategic priorities and capitalize in light ofthese business and economic trends, and the updated full-year 2021 financial guidance for the Company. The Company cautions that all forward-lookingstatements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information,you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a resultof various important factors. Such factors may include, among other things, the extent and duration of the disruption to our business operations caused by theglobal health crisis associated with the COVID-19 pandemic, including the effects on the financial health of our business partners and customers, on supplychains and our suppliers, on vehicle miles driven as well as other metrics that affect our business, and on access to capital and liquidity provided by thefinancial and capital markets; the Company’s ability to maintain compliance with its debt covenants; the Company's ability to successfully integrate acquiredbusinesses into the Company’s operations and to realize the anticipated synergies and benefits; the Company's ability to successfully implement its businessinitiatives in its two business segments; changes in demand for the Company's products; the ability to maintain favorable supplier arrangements andrelationships; disruptions in global supply chains and in our suppliers' operations, including as a result of the impact of COVID-19 on our suppliers and oursupply chain; changes in national and international legislation or government regulations or policies, including changes to import tariffs, environmental andsocial policy, infrastructure programs and privacy legislation, and their impact to the Company and its suppliers and customers; changes in general economicconditions, including unemployment, inflation (including the impact of tariffs) or deflation and the United Kingdom's exit from the European Union and theunpredictability of the impact following such exit; changes in tax laws, regulations, treaties and policies, including the interpretation and enforcement of any ofthe foregoing; volatile exchange rates; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; the Company's ability tosuccessfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product,service and pricing pressures; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting, including as a resultof the work from home environment; the uncertainties and costs of litigation; disruptions caused by a failure or breach of the Company's information systems,and the other risks and uncertainties discussed in the Company’s latest SEC filings. The statements speak only as of the date they are made, and theCompany undertakes no duty to update any forward-looking statements made during this presentation or in these materials except as required by law. Actualresults may vary materially and, as such, you are cautioned not to place undue reliance on these forward-looking statements.

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Randy BreauxPresident

Carol YanceyEVP & CFO

Will StengelPresident

Presenters

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Global Footprint2021 Revenue by Region (as of 6/30/21)

Key Statistics(as of 6/30/21)

Founded: 1928Headquarters: Atlanta, GACountries Served: 15

Locations: ~10,600• Warehouses ~900• Distribution Facilities ~190• Retail (Owned/Independent) ~9,500

Employees: ~52,000

74%North

America

15%Europe

11%Australasia

Genuine Parts Company Snapshot (NYSE: GPC)

Market Capitalization: ~$18B Leading Global Distributor of Automotive and Industrial Replacement Parts

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Our Transformational Journey

2013

• Four segments: Automotive, Industrial, Office Products, Electrical

• North American and Australasian operations

• Expanded distribution footprint

2017 - 2020

• Evolved to two segments: Automotive and Industrial

• Expanded operations in Europe, North America and Australasia

• Created global transformation office

• Strengthened omni-channel capabilities

• Enhanced shared services platform

• Increased capabilities in advanced data analytics

2021+

• Focus on profitable growth and execution of strategic initiatives

• Further expand North American, Australasian and European operations

• Focus on market-leading automotive and industrial businesses

• Drive efficient and productive cost structure

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U.S.A CanadaAsia/Pacific

U.S.A

US Automotive AAG GPC Asia Pacific UAP – NAPA Canada

Headquarters:Atlanta, GA

US:• 63 Distribution Centers

• 5,870 NAPA Auto Parts Stores

• 22 Traction Heavy Duty Parts Stores

Mexico:• 13 NAPA Mexico stores

Headquarters:London, England

France:• 17 Distribution Centers

• 1,089 Stores

UK:• 35 Distribution Centers

• 816 Stores

Germany:• 11 Distribution Centers

• 61 Stores

Poland:• 210 Stores

Netherlands & Belgium:• 7 Distribution Centers

• 212 Stores

Headquarters:Melbourne, Australia

Australasia:• 13 Distribution Centers

• 414 Auto Parts Storesand Branches in Aus

New Zealand:• 111 Auto Parts Stores

and Branches in NZ

Headquarters:Montreal, Quebec

Canada:• 14 Distribution Centers

• 693 NAPA and Heavy Vehicle Stores

• 24 Import Parts Facilities

$230B+ Global Market

United States$125

Europe$83

Canada$9

Australasia$7

Mexico$6

Business Across the GlobeAutomotive – 66%

8% Market Share+2-3% Industry Growth

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U.S.A Canada Asia/PacificU.S.A

Business Across the GlobeIndustrial – 34%

Motion Motion Asia Pacific

Headquarters:Birmingham, AL

U.S., Canada & Mexico:

• 25 Distribution Centers

• 593 Branches

• 53 Service Center

Headquarters:Sydney, Australia

Australia, New Zealand, Indonesia & Singapore:

• 8 Distribution Centers

• 143 Branches

$200B+ Global Market

North America$190

Australasia$10

3% Market Share+2-3% Industry Growth

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Advancing longer-term strategic roadmap and excited for numerous opportunities

Unique culture, based on core values and purpose, serves as important common foundation

Leadership positions in attractive, fragmented markets; leading global brands and long-standing relationships based on customer service and expertise

Current Priorities – investing in our core business, including talent, sales force effectiveness, digital, supply chain and emerging vehicle technologies

Key value drivers – profitable growth, operating leverage, cash conversion and disciplined capital allocation

Strategic Areas of Focus

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YTD 2021 Highlights

Sales

$9.2Bup 16.8%

Gross Margin

+20%15th Consecutive

YOY Increase

Adj. Total Expenses

+14%Improved 70 BpsAs a % of Sales

Adj. EPS

$3.24Up 53%

Ample Liquidity

$2.5BAt June 30

Adj. Net Profit Margin

+54%Improved 160 Bps

Capital Structure

1.6xTotal Debt to Adj

EBITDA

Strong Cash Flow

$1B+Cash from Operations

2021E

ImprovedWorking Capital

$1.2BAt June 30

Financial Strength to

Drive Growth

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16%

38%15%

31%

YTD 2021 Capital Deployment Current Priorities

Dividend

Reinvestment

M&A

Share Repurchases

1 Includes proceeds from divestitures.

~$600M1

Disciplined Capital Allocation

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2021 Strong Outlook and Strategic Growth Plans

FREE CASH FLOW

$900M to $1.1B

TOTAL REVENUE

10% to 12%AUTOMOTIVE: 11% to 13%

INDUSTRIAL: 6% to 8%

CASH FROM OPERATIONS

$1.2B to $1.4B

ADJ EPS

$6.20 to $6.35+18% to +20%

Guidance provided July 22, 2021

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$500,000

$30 Million

$100 Million

$1.0 Billion

$2.3 Billion

$3.5 Billion

$5.7 Billion

19761980

19902000

20102020

1946

Revenue History

33Distribution Centers

53Service Centers

736Branches

Access to

10M+Parts

Select Suppliers

Strategic suppliers represent 50% of our purchases

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Product Segments

Mechanical Industrial & Safety Bearings Material Handling

Hydraulics Electrical & Automation Pneumatics Linear

Seals & Accessories Hydraulic Hose Industrial Hose Process Pumps

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Diverse Customers

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Key Industries

Equipment& Machinery Food & Beverage Iron & Steel Pulp & Paper

Automotive Chemical &Allied Products

Aggregate & Cement Fabricated Metal

Lumber & Wood Equipment Rental& Leasing

Rubber & PlasticProducts Oil & Gas Extraction

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Corporate Accounts

Energy Services Team

Cost Savings Initiatives

Repair & Warranty Management

Product/Industry Technical Expertise

Inventory

Analytical Reporting

On-site Solutions

CorporateAccounts

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Value Proposition

REDUCE PURCHASE &

OWNERSHIP COST

ASSET MANAGEMENT

SAVINGS

OPERATIONAL & PRODUCTIVITY IMPROVEMENTS

COMPREHENSIVESINGLE SOURCE

KNOWLEDGE, EXPERTISE &

INNOVATIVE SOLUTIONS

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Comprehensive Single-Source Provider

Heavy Volume

Right Parts

Unplanned Purchased

Service Solutions

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Field Products Specialists

Expertise ProductGroupsOfferings Benefits

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Repair and Service Group

Mechanical Fluid PowerElectrical Hose

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Market Overview

~3%Market ShareSignificant growth

opportunity

Addressable Market

~$200B$190B in North America

$10B in AsiaPacExpansion

via new and expanded product offering and new technologies

Preventive, Predictive Maintenance Repair

and Operations

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Industrial Drivers

Factors thatInfluence the Business

IndustrialProduction & PMI GDP Inflation

Rates

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Fragmented Competitive Landscape

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Strategic Growth Initiatives

Omnichannel Industrial Services & Solutions

Acquisition Strategy

EnhancedPricing

Strategy

NetworkOptimization

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Omnichannel

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Small | Medium Customers

Digital Marketing

Large Customers

Branch CSR

Outside Sales + MiPRO

Inside Sales Call Center

Omnichannel Sales Process

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Industrial Services & Solutions

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Acquisition Strategy

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Acquisition Strategy & Focus

HOSE & CONVEYANCEFLUID POWER PROCESS PUMPMECHANICAL AUTOMATION

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Enhanced Pricing & Category Management

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Price Structure

Implemented a VALUE basedpricing methodology

• Competitors• Time Based Pricing• Supply & Demand• Customer Profiles• External Factors in the Market• Total Cost to Serve• Willingness to Pay or “Elasticity”

Taking multiple dynamicsinto consideration:

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Network Optimization

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KEY TAKEAWAYS• We operate in a very large and fragmented

global market with significant growth opportunities

• Motion has the right resources, strategy and management team to further strengthen our position as a leading industrial distributor

• We are well-positioned to deliver market share gains and sustained profitable growth

• The Industrial business is accretive to the overall value of Genuine Parts Company

Change is certain and the best way to predict the future is to create it!

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