Genuine Parts : GPC Investor Presentation August 2022 Download (2.5 MB)

Genuine Parts Company Investor Presentation

August 2022

Safe Harbor Statement

FORWARD-LOOKINGSTATEMENTS: Some statements in this presentation, as well as in other materials we file with the Securities and Exchange Commission (SEC), release to the public, or make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as "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 our view of business and economic trends for the remainder of the year and our expectations regarding our ability to capitalize on these business and economic trends and to execute our strategic priorities, and the updated full-year 2022 financial guidance provided. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. We caution you that all forward-looking statements 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 result of various important factors. Such factors may include, among other things, changes in general economic conditions, including unemployment, inflation (including the impact of tariffs) or deflation and geopolitical conflicts such as the conflict between Russia and Ukraine; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; the extent and duration of the disruption to our business operations caused by the global health crisis associated with the COVID-19 pandemic, including the effects on the financial health of our business partners and customers, on supply chains 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 the financial and capital markets; our ability to maintain compliance with our debt covenants; our ability to successfully integrate acquired businesses into our operations and to realize the anticipated synergies and benefits; our ability to successfully implement our business initiatives in our two business segments; slowing demand for our products; the ability to maintain favorable supplier arrangements and relationships; disruptions in global supply chains and in our suppliers operations, including as a result of the impact of COVID-19 on our suppliers and our supply chain; changes in national and international legislation or government regulations or policies, including changes to import tariffs, environmental and social policy, infrastructure programs and privacy legislation, and their impact to us, our suppliers and customers; changes in tax policies; volatile exchange rates; our ability to successfully 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 result of the work from home environment; the uncertainties and costs of litigation; disruptions caused by failure or breach of our information systems, as well as other risks and uncertainties discussed in our 2021 Annual Report on Form 10-K and Item 1A, Risk Factors, in our report on Form10-Q for the quarter ended March 31, 2022 (all of which may be amplified by the COVID-19 pandemic and geopolitical conflicts, such as the current conflict between Russia and Ukraine) and from time to time in our subsequent filings with the SEC. Forward-looking statements speak only as of the date they are made, and we undertake no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K,10-Q,8-K and other reports filed with the SEC.

NON-GAAPMEASURES: This presentation contains adjusted net income, adjusted diluted earnings per share, adjusted EBIT and adjusted EBITDA, segment profit and free cash flow, which are financial measures that are not derived in accordance with United States generally accepted accounting principles ("GAAP"). The Company considers these non-GAAP measures useful to investors because they provide greater transparency into management's view and assessment of the Company's core operating performance. These measures are widely used by analysts, investors and competitors in our industry, although our calculation of the measure may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner. The Company does not, nor does it suggest investors should, consider non-GAAP financial measures superior to, in isolation from, or as a substitute for, GAAP financial information. The Company has included reconciliations of this additional information to the most comparable GAAP measure in the appendix of this presentation.

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Key Messages

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Leading global distributor with scale and brand strength to capture market share

Strong track record of strategic acquisitions to drive growth in large, fragmented addressable markets

Leverage distribution expertise, efficiencies and shared services across businesses

Optimized portfolio and organizational structure for profitable growth in both global Automotive and Industrial

Strong balance sheet, cash flow, disciplined capital allocation and history of consistent dividends

Focused on Maximizing Shareholder Value

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Q2 Points of Interest

• The GPC team had another record quarter, consisting of double-digitsales and earnings increases and a steady cadence of continued growth throughout April, May and June
• • Total sales were $5.6 billion, up 17%, and adjusted earnings per share1 was $2.20, up 26% from last year
• Operations are benefiting from the resiliency of our Automotive and Industrial businesses and the strategic mix of our operations
• We are extremely proud of our 53,000 talented GPC teammates for their exceptional work and commitment to excellence

Strategic Initiatives and Focused Team Execution Delivering Results

1See Appendix B

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Genuine Parts Company Snapshot

Key Statistics1

Founded	1928
Headquarters	Atlanta, GA
Countries Served	17
Locations	~10,580
• Warehouses	~825
•	Distribution Facilities	~200
•	Retail (Owned/Independent)	~9,555
Employees	~53,000
Market Capitalization5	~$22.9B

TTM Financial Highlights1

Revenue	$20.5B
• Automotive	64%
• Industrial	36%
Segment Profit Margin2	9.1%
Free Cash Flow3	~$1.0B
Dividend Yield4	2.7%

Global Footprint

TTM 2022 Revenue by Region1

75%	15%
North
America	Europe	10%
		Australasia

Leading Global Distributor in Diversified End Markets

1As of 6/30/22 2See Appendix A 3See Appendix C 4Calculated based on annual dividend per share divided by share price as of 6/30/22 5As of 8/17/22

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