Genuine Parts : GPC Investor Presentation March 2024

Genuine Parts Company Investor Presentation

March 2024

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 coming year, our expectations regarding our ability to capitalize on these business and economic trends and to execute our strategic priorities, and the established full-year 2024 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, financial institution disruptions and geopolitical conflicts such as the conflict between Russia and Ukraine, the conflict in the Gaza strip and other unrest in the Middle East; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; public health emergencies, 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; 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 a failure or breach of our information systems, as well as other risks and uncertainties discussed in our Annual Report on Form 10-K for 2023 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 certain financial information not derived in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP").

These items include adjusted net income, adjusted gross profit, adjusted operating and non-operating expenses, total segment profit, total segment margin, adjusted EBITDA, adjusted diluted earnings per share and free cash flow. We believe that the presentation of these non-GAAP measures when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to both management and investors that is indicative of our core operations. We considered these metrics useful to investors because they provide greater transparency into management's view and assessment of our ongoing operating performance by removing items management believes are not representative of our operations and may distort our longer-term operating trends. We believe these measures are useful and enhance the comparability of our results from period to period and with our competitors, as well as show ongoing results from operations distinct from items that are infrequent or not associated with our core operations. We do not, nor do we suggest investors should, consider such non-GAAP financial measures as superior to, in isolation from, or as a substitute for, GAAP financial information. We have included reconciliations of this additional information to the most comparable GAAP measure in the appendix of this presentation. We do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include acquisition-related costs, litigation charges or settlements, impairment charges, and certain other unusual adjustments.

GPC INVESTOR PRESENTATION | 2

Our Purpose: We Keep the World MOVING

Our Mission

BE THE

Employer of Choice

BE THE

Supplier of Choice

BE A

Valued Customer

BE A

Good Corporate Citizen

BE THE

Investment of Choice

Our

Vision

Be the leading global automotive and industrial parts distributor and

solutions provider.

Our

Values

Serve

Perform

Influence

Respect

Innovate

Team

GPC Operating Principles

How We Play

Where We Play

How We Win

How We Measure Success

One GPC Team working together to create customer success and stakeholder value

Earn strategic leadership positions in industries, geographies, customers and suppliers with opportunities to profitably grow

Invest and differentiate in Talent & Culture, Sales Effectiveness, Technology, Supply Chain, Emerging Technology and Mergers & Acquisitions

Deliver profitable growth in excess of market, operating leverage, free cash flow and ROIC through the cycle

GPC Snapshot (as of 12/31/2023)

Key Statistics

Founded	1928
Headquarters	Atlanta, GA
Countries Served	17
Locations	~10,730
•	Distribution Centers	~200
•	Warehouses	~725
•	Retail (Owned/Independent)	~9,805
Employees	~60,000
Market Capitalization	~$19.3B

2023 Financial Highlights

Revenue1	$23.1B
•	Automotive	62%
•	Industrial	38%
Segment Profit Margin2	9.9%
Free Cash Flow2	~$923M
Dividend Yield3	2.7%

Global Footprint

2023 Revenue by Region

16%

Europe

75%

North

America

9%

Australasia

Leading Global Distributor in Diversified End Markets

1See Appendix A 2See Appendix B 3Calculated based on annual dividend per share divided by share price as of 12/31/23

GPC INVESTOR PRESENTATION | 5

History of Disciplined Execution to Drive Profitable Growth

					2019
					Acquired
		1968				2020	2023
1928		2013	Sold	Celebrating
Begin trading on	1976
Founded	Acquired GPC	Auto Todo	Inenco	96 Years - A
NYSE: GPC	Acquired	Asia Pacific	Rebranding	Record Year
				and EIS

Strong History of Sales

and Profit Growth

Increased Sales and Profit in 90

and 79 Years of 96-Year History,

Respectively

Dividend Growth

																		2024 Marks GPC's 68th
																		Consecutive Year of Dividend
1925		1948		1975		1998			2017		2020		2022					Increases
Established		IPO		Acquired		Acquired		Acquired			Acquired
					Sold S.P.
				S.P. Richards							KDG
										Richards
				Revenues ($B)								Adjusted EBITDA ($M)
									$22.1	$23.1
																				$2,157
								$18.9												$1,999
						$17.5
				$16.3	$16.8	$16.5												$1,682
$14.1	$15.3	$15.3	$15.3
															$1,350	$1,378	$1,378
											$1,203	$1,290	$1,286	$1,241	$1,265
											8.5%	8.4%	8.4%	8.1%	7.8%	8.0%	7.9%	8.2%	8.8%	9.0%	9.3%
2013	2014	2015	2016	2017	2018*	2019*	2020*	2021*	2022*	2023	2013	2014	2015	2016	2017	2018*	2019*	2020*	2021*	2022*	2023

* 2018 - 2020 continuing operations only; prior years are as originally reported; no adjustments prior to 2018 for EBITDA; For the period 2018 - 2022, adjusted EBITDA for these periods excludes

restructuring, inventory adjustment and transaction and other certain costs. These amounts are non-GAAP measures (See Reconciliation of Non-GAAP Measures) 1 2013 adjusted to exclude discontinued and GPC INVESTOR PRESENTATION | 6 divested operations

Significant Transformation of Portfolio Since 2019

	Progress since 2019
2019	Established transformation office
3%	Divested EIS and SPR

9%

	~$150M cost reduction
31%	Recruited new talent
	57%

Established global investment pillars

2023

38%

62%

Acquisition of KDG

Automotive Industrial SPR EIS

Continued effective M&A strategy

Better Positioned for Future Growth

With a Streamlined Portfolio

GPC INVESTOR PRESENTATION | 7

Our Market-Leading Global Automotive Business

Largest network of parts and care

Diversification of Business

Growth Opportunities

• Sales Team Effectiveness

2023 Sales by Region

10% Canada

9,805

• Commercial sales programs and promotions
•	Improve inventory availability
•	Strengthening supply chain
• Omni-channel investments - B2B & B2C
•	Strategic pricing initiatives

12%

Australasia

53%

U.S.

Stores

3,146 company owned

6,659 independents

•	Maximize value of NAPA and other key brands
•	Expand global footprint

25%

Europe

20,000+

Global Repair Center Customer Partnerships

~80%

DIFM

~20%

DIY

~80%

of NA Sales are

NAPA-Branded Products

Strong Results (2019 to 2023)*

Sales CAGR of	~60bps
6.7%	Segment Margin
	Improvement

* Excludes impact of divestitures

Our Market-Leading Industrial Business

		Growth Opportunities
		• Omni-channel buildout / e-commerce acceleration
Leading industrial parts distributor and solutions	• Expand industrial services and value-add solutions
capabilities
provider in North America and Australasia…meeting	• M&A to further boost product/service offerings
needs for industrial manufacturing applications and	• Enhance pricing and product category management
processes		• Network optimization and automation for improved
		productivity
~725	Access to	Strong Results (2019 to 2023)*
Sales CAGR of	~440bps
19M+ Parts
Branches and	7.9%	Segment Margin
Service Centers
	Improvement

Diverse portfolio of end markets

2023 Sales by Product Category

• Equipment & Machinery	• Lumber & Wood Products
• Food Products	• Fabricated Metal Products
• Iron & Steel	• Rubber & Plastic Products
• Pulp & Paper	• Equipment Rentals & Leasing
• Automotive	• Oil & Gas Extraction
• Mining	• Distribution/Logistics

• Aggregate & Cement
• Chemical & Allied Products

Bearings / Power Transmission

Industrial / Safety Supplies

Misc. Products & Services

Hydraulics / Pneumatics

Material Handling

Seals, Pumps & Hoses

Electrical & Automation

Linear

32%

15%

15%

11%

9%

8%

8%

2%

* Excludes impact of divestitures

The Power of One GPC

Operating	Leverages	Capture	Based on its	Translate into
strategy	shared values	opportunities	global business	differentiated
that …	and teamwork	uniquely available	mix and scale	performance and
	to …	to GPC …	that …	shareholder value

One GPC Team working together to create customer success and shareholder value GPC INVESTOR PRESENTATION | 10