#1GPC Celebrating 90 Years GENUINE PARTS CO PISTONS PINS RINGS BEARINGSA VALVES Цаст в GEARS SHA FLYW BAND GENUINE PARTS CO. OODE NAPA NAPA Genuine Parts Company Investor Presentation#2Safe Harbor Statement Some of the comments made and information contained in our presentation will be forward-looking statements within the meaning of 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. These are based on current information and the beliefs and expectations of the Company but are subject to various risks and uncertainties that could cause the Company's actual results to differ materially from the Company's expectations. These include, among other things, the Company's ability to successfully implement its business initiatives and integrate its acquisitions in each of its business segments, slowing demand for the Company's products, changes in general economic conditions, including, unemployment, inflation or deflation, changes in tax policies, changes in 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 uncertainties and costs of litigation, as well as other risks and uncertainties described in the Company's latest SEC filings. The statements speak only as of the date on which they are made and the Company assumes no obligation to update any forward-looking statements made during this presentation or in these materials except as required by law. GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 2#3GPC Investment Highlights Leading global distributor in diversified end markets Proven track record of steady growth ◆ Strong balance sheet with meaningful free cash flow generation Committed to maximizing shareholder value ◆ Opportunity for market share growth in large and fragmented industries Large customer base built upon long-standing relationships GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 3#4GPC Company Overview - Celebrating 90 Years! 2017 Annual Sales $16.3 Billion 2018 Projected Sales $18+ Billion Founded in 1928 Leading distributor to three primary end- markets: SPR - Automotive Parts (APG) - Industrial Parts Group (Motion & EIS) Business Products (S.P. Richards) ◆ Critical partner to our customers: - Best in class operating and distribution efficiencies - Industry leading coverage of consumable/replacement items Outstanding just-in-time service Technology solutions GENUINE PARTS 12% 35% GPC 53% APG SPR 33% 10% GPC 57% 1% 7% 9% 7% 2% 8% GPC 9.5% GPC 81% 75% .5% APG COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 4#5GPC Portfolio Optimization ◆ Global Presence with Significant Brand Strength - Financial Strength with Access to Capital and Low Cost of Capital Enhanced Global Buying Power for Direct and Indirect Spend Global sourcing, common suppliers and providers, volume/scale ◆ Common Distribution Processes Shared talent, practices, technology & systems, services, transportation ♦ In 2018: - EIS combined into Motion Industries GPC entered into agreement to spin-off Business Products Group (S.P. Richards) and combine it with Essendant GENUINE PARTS COMPANY LO All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#6GPC Track Record of Success - Strong history of sales & profit growth • Sales have increased in 85 of 90 year history Profit has increased in 74 of 90 year history ◆ Dividend growth 2018 marks GPC's 62nd consecutive year of dividend increases NAPA Established NYSE Traded On IPO NYSE: GPC Acquired Acquired AutoTodo a GPC company CELEBRATING 90 YEARS Acquired ALLIANCE AUTOMOTIVE GROUP Acquired A 1925 1928 1948 1968 1975 1976 1998 1999 2013 2017 2018 GPC Founded GENUINE Acquired S.P.RICHARDS CO. A Tradition of Trust Acquired EIS Combined EIS INENCO GPC GROUP into Motion 35% ASIA PACIFIC Ownership Acquired PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#7GPC Ten Year Sales & Earnings History $ Billions Record Sales and Earnings per Share in 7 of last 10 Years* 17.0 15.0 13.0 -0.4% +0.4% +6.3% +9.0% 11.0 +8.2% +4.5% 9.0 +1.6% +11.2% +11.4% -8.7% 7.0 5.0 2008 2009 2010 2011 2012 EPS -2% 2013 EPS EPS 2014 EPS 2015 -14% +20% EPS 2016 +19% EPS 2017 +16% +6% EPS +10%* EPS +0.4% EPS EPS -0.9% +3%* * Comparative Results GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#8APG Automotive Parts Group Highlights ◆ Largest global auto parts network ◆ 2017 Sales at $8.7 billion; 2018 sales est. at $10.5B - 2 US: 57 DC's & 6,000 NAPA stores (~1,150 Co. owned) 2 Canada: 12 DC's & ~ 700 NAPA stores (~200 Co. owned) Mexico: 12 DC's & 42 NAPA stores Automotive 57% NAPA ALLIANCE GPC ASIA PACIFIC AUTOMOTIVE GROUP - Balkamp: Parts Re-Packager - Rayloc: Brake Products Distributor - Altrom: OE Import Parts - Heavy Vehicle Parts Group: Class 6,7,8 trucks NAPA AUTO PARTES 47 DC's & 2,000+ Store Footprint in U.K., France, Germany, & Poland via Alliance Automotive Group ◆ 12 DC's & 560 Store footprint in Australia and New Zealand via Repco & other banners Superior brand recognition & customer service ◆ Globally positioned to benefit from positive industry trends GENUINE PARTS NAPA Renco NAPA AUTO PARTS SOFAS NAPA KNOW HOW Repco COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 8#9APG Quarterly Sales History YTD 2018 +29% +28% +30% Sales Billions +11% +4% $2.75 -1% +1% +2% +3% +4% $2.50 -0- -2% +5% +4% -2% +2% +4% $2.25 -0- +22% +22% +25% +23% $2.00 $1.75 +3% $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 2017: +6% 2015: -1% 2016: +1% 2014: +8% (+4% ex Fx) 2013: +18.5% PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. GENUINE#10APG The Global Automotive Aftermarket Australasia $7B $200B Global Market - Large, Fragmented, and Growing Europe $82B United States $100B Country Market Share Industry Growth United States 7.5% +2% Europe* 5% +2% Canada 14% +3% Mexico $6B Australasia 20% +2% Canada $9B Mexico 2% +6% Total 7.5% +2% *Reflects France, U.K., Germany, and Poland 10 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#11APG NA Automotive Parts Group Overview NAPA Established 1925 ◆ (90%) NAPA branded products NAPA Know How Differentiators: - - Product quality, depth and breadth Trained personnel/service capabilities Technology offering Commercial/DIFM customers - Professional service repair facilities - Approx. 75% of NAPA sales 17,000+ NAPA U.S. Auto Care Centers 1,600+ in Canada (& 600+ AutoPro Centers) Major Accounts: AAA, Goodyear, Firestone, TBC, CBAdvantage Retail/DIY customers - Individual consumer customer Approx. 25% of NAPA sales Major Competitors U.S. - AutoZone, Advance Auto Parts, O'Reilly Canada Uni-Select, AAP/Carquest Mexico AutoZone NAPA AUTOCARE CENTER Car Care Center TAPA AUTOPRO Major Account Customers Approved Auto Repair TBC RETAIL GROUP Firestone since 1926 COMPLETE AUTO CARE™ GOOD YEAR BBADVANTAGE a division of CBC GENUINE PARTS COMPANY 11 All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#12Annual Spend per Vehicle APG $1,000 U.S. Vehicle Fleet Trends Consumers Are Maintaining Older Vehicles Prime Years for Aftermarket Repair Start in Year 6 $800 $600 $400 $741 $776 $829 $868 $861 $873 $644 $671 $857 Avg. Repair Cost/Year 1-5 Yr = $555 6-12 Yr = $829 $573 $484 $776 $802 $812 $200 $403 > 12 Yr $797 = $0 1 2 3 4 5 6 7 8 9 Source: IMR, Inc. Automotive Research, BB&T GENUINE PARTS Vehicles 6+ Years of Age >70% of Fleet 10 11 12 13 14 15+ Vehicle Age COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 12#13APG Fundamentally Strong Aftermarket in U.S. ◆ Total vehicle fleet growing ◆ Average age of fleet increasing ◆ Generally lower gas prices ◆ Miles driven reaching new peaks +1 to 2% thru 2020 11.7 Years $2.97/GL At June 2018 +1.2% in 2017 +0.3% thru May 2018 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 13#14APG NAPA Retail Store 899 Open 7 ys & Week We Have ASE Certified Batteries Alternators Starters TESTING CENTER! Let us test it for you FREE We Carry Heavy Duty Truck Parts Before Tire Repair Us About Our Truck Accesso s&Equipment Parts & Accessories Your Source For Buality SEASONAL SAVINGS! We Can Order Performance Parts & Accessories EVERCRAFT TON SALE $295.00 COUNTI LARS 14 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#15APG NAPA Retail Store - New Store Concept KNOWLEDGE EXPERTISERIES EXPERTISE TRUSTED VALUE EXPERTISE QUALITY AUTHENTICI WLEDGE BY SANDALE POOLS IN SERVICE TOOLS DIY HAND TOOLS DIY HAND TOC After U.S. company-owned store rollout to be completed in 2018 Retail sales for these stores > company average VALUE QUALITY EXPERTISE DYSIVE THIS DIY SERVICE TELS DIY HAND TOOLS DIY HAND TOOLS M TRUSTED AUTHER VALUE QUALITY CO KNOWLEDGE TRUSTED T QUALITY 187 INCREDIBLE DE Meguiar's FILTERS 15 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. $299#16APG NAPA AutoCare Centers Automotive 300-35 Before 24.000 MES After PROmage NAPA AutoCare 17,500 in U.S. 1,648 in Canada NAPA AUTOPRO 623 in Canada NOTICE MIKE THE MECHANIC AUTO REPAIR & SERVICE NAPA AUTOCARE COOLING SYSTEM 4950 SERVICE OPEN 520-351-2061 Was Se14 Office CENTER MIKE THE MECHANIC AUTOMOTIVE REP DIAGNOSTICS EXPERTS We Acc AIR CONDITIONING 0-351-206 The Aftermarket's Preeminent Commercial Program for the Independent Repair Center GENUINE PARTS 16 COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#17APG Alliance Automotive Group Acquired November 2017 Leading European distributor of vehicle parts, tools, and workshop equipment Focused on light vehicle and commercial vehicle replacement parts A leading European player in attractive markets with strong fundamentals and growth potential: - #1 in France #2 in the U.K. #3 in Germany Announced acquisition of Hennig Fahrzeugteile Group in June 2018 - Effective October 2018 (31 locations and $190M US$ in annual revenues) Entered into Poland in Q4 2017 through acquisition of majority stake in Groupauto Polska Integrated distribution model similar to GPC ◆ Allows GPC to leverage global supplier base across businesses ~$25M in annual synergies GENUINE % Revenue by country¹ 14% 50% 36% Gross Billings $2.3bn² 2017 Key Figures (USD)1 US GAAP Revenue $1.7bn 2,032 Total Outlets 47 Distribution centers 40,000+ Customers 500+ Suppliers 8,000+ Employees 1,669 Affiliated outlets 363 Owned outlets Serves 4,000+ repair centers under leading commercial programs, including the Top Garage, Auto Care and Precisium Garage banners 12017 USD/EUR of 1.20 2 Includes supplier direct billing, which are accounted for "Net" under U.S. GAAP PARTS COMPANY 17 All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#18APG European Automotive Aftermarket Car parc age Car parc size Technological developments Long-term growth drivers IAM4 gaining share over OES segment Total traffic Favorable regulation Overview of European LV aftermarket at distribution level Germany €14.0bn Other countries 48% 20% European LV market per country at distribution level France2 U.K.2 Germany² Car parc size (m, LV) 38.3 35.6 47.9 U.K. 1 €8.5bn ' Aftermarket M size split per 13% 52% country Car parc age (years, PC) 8.9 7.6 9.3 Mileage (km per year, LV) 13,400 13,400 14,300 13% France €8.9bn 6% Poland €4.0bn Annual spend per car³ (retail price, €, PC) 390 385 470 TOTAL EUROPEAN AFTERMARKET €68bn¹ AAG operates in the largest and most attractive European markets Source: Roland Berger 1 LV parts (tires included) plus tools and equipment, captive parts excluded, in EU's 28 countries; 2 Stats relate to 2016; 3 Parts only 4 Independent Aftermarket ("IAM"); IAM represents approx. 48% of total LV aftermarket in France, U.K., and Germany combined GENUINE PARTS COMPANY 18 All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#19APG Top 3 position in the largest European markets with significant opportunities for growth LKQ SATR ALLIANCE AUTOMOTIVE GROUP autodistribution doyen LE SPECIALISTE DE LA PRICE AUTO WM TROSTO inter cars SAG SWISS AUTOMOTIVE GROUP Mekonomen UNI-SELECT. Parts Alliance K LAUSAN € 100m G GROUPAUTO France плествые QUIPO RHIAG CAR PARTS STAHLGRUBER € 900m € 600m 榮 € 2,000m € 1,400m € 1,350m € 600m (25% LKQ) € 500m AAG's Banners by Country LAUSAN ALLIANCE AUTOMOTIVE GROUP LKQ Parts Alliance Partner's ALLIANCE AUTOMOTIVE GROUP G GROUPAUTO Polska G Otr AUTO W FRANCE GENUINE GERMANY GERMANY PARTS LKQ LKQ autodistribution € 3,950m NORMAY Mekonomen Mekonomen Mekonomen DENMAR SWEDEN Mekonomen ALLIANCE AUTOMOTIVE GROUP LKQ ALLIANCE AUTOMOTIVE GROUP inter cars POLAND ALLIANCE AUTOMOTIVE GROUP WM TROST CZECH REP. ELKQ inter cars autodistribution GROUPAUTO UK & Ireland LAN K SAG LKQ AUSTRIA SAG LKQ WM CROATIA SLOVAKI ELKQ inter cars HUNGAR LKQ inter cars inter cars SAG LKQ SLOVENIA LKQ inter cars C BOSNIA SERBIA MONTENEGRO MACEDONIA ALBANIA GREECE ROMANIA BULGARIA POLAND COMPANY UK 19 All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#20APG GPC Asia Pacific Acquired 2013 ◆ Market Share Leader in Australia and New Zealand 560 Company-owned stores Added ~60 stores since 2015 Primary Banners ■ Repco ashdown ingram MCLEOD ACCESSORIES GPC ASIA PACIFIC Renco 13 12 68 Repco TRADE COVS WAREHOUSE Automotive, Mining & Industrial Supplies motospecs ORDA BRAKES Repair Center Commercial Program 466 Repco-Authorized Service Centers GENUINE PARTS COMPANY Major Competitors Supercheap, Burson, & auto Barn 20 20 All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#21APG Global Leader in the Aftermarket 2018 Est. DCs Stores USA $6.2B 57 6,000 Europe $1.9B 47 2,000 Canada $1.1B 12 700 Australasia $1.2B 12 600 Mexico $100M 12 42 $10.5+ Billion 140 9,342 21 21 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#22APG Growth Opportunities Key Areas of Focus New Distribution Commercial Programs Major Accounts Outside Sales Connectivity Special Markets Store Resets & Upgrades GENUINE PARTS Initiatives Plans for new NAPA AUTO PARTS stores in U.S., Canada, and Mexico • Alliance Automotive Group expansion in Europe • Store expansion in Australia and New Zealand • Continued Enhancements and Expansion of Global Commercial Programs for Independent Repair Centers • NAPA AutoCare, AUTOPRO, RAS, Top Garage, Precisium Garage, Groupauto AutoCare Further Expansion of Major Account Customer Sales • Additional Outside Sales Representation at Stores ⚫ Enhanced Installer Connectivity and Capabilities Heavy Duty Parts, Import Parts, Paint, Tools & Equipment Retail Sales Initiatives Impact Store Initiative in U.S. and Canada Ongoing Programs to Refresh and Upgrade All Stores COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 22 22#23Industrial Parts Group Motion Industries Highlights Leading industrial parts MRO distributor in North America ◆ 2017 Sales at $5.7 billion; 2018 sales est. $6B+ Founded 1946 Acquired 1976 EIS = OPPORTUNITY 14 MI DC's and 540+ branches and service - - centers in the U.S., Canada and Mexico 44 EIS locations across North America ◆ Proven track record with over 70 years in the industry ◆ Access to over 7.1 million products - Global manufacturing base Very large and fragmented industry (29%) Industrial 33% EIS (4%) KEEPING INDUSTRY IN MOTION ◆ Efficient supply chain and vendor partnerships ◆ High customer service levels & tech support ♦ Industry leading E-Business capabilities 23 23 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#24Sales Millions $1,600 Quarterly Sales History Updated for Motion and EIS Combination 2018 +8.5% +9% +8% +6% +6% +8% +7% +10% +13% +12% +3% -1% -3% -2% -2% +4% $1,400 +7% -3% -1% -3% -7% -2% +3% $1,200 $1,000 $800 $600 $400 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 2017 +7% 24 2016 -1% 2015 -2% Q1'13 2014 +10% 2013 -1% All Content is Company Confidential and Exclusive Property of Genuine Parts Company. GENUINE PARTS COMPANY#25Suppliers: SKF, Baldor, Gates, Rexnord, Timken, Eaton and 3M Overview SKF. BALDOR BALDOR DODGE RELIANCER Gates 3M Rexnord TIMKEN EATON ◆ Customers represent all industry groups, including Equipment & Machinery, Food Products, Iron & Steel, Pulp & Paper and Mining & Aggregate JOHN DEERE MARS GP Georgia-Pacific Ford GENUINE Major Competitors Applied Industrial Technologies Kaman (Industrial Technologies Div.) DXP Enterprises Industrial Sales by Product Category Other Seals, Pumps & Hose 7% 6% Material Handling 7% Bearings & Power Transmission 31% Electrical & Automation 9% Hydraulics & Pneumatics 12% Industrial & Safety 14% Electrical Specialties Group 14% 25 25 PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#26Industries Served ◆ Equipment and Machinery ◆ Food Products & Processing Pulp and Paper ◆ Iron and Steel ◆ Fabricated Metal Products Lumber and Wood Products Chemical Products ◆ Aggregate & Cement ◆ Equipment Rentals/Leasing Oil & Gas Extraction ◆ Automotive Rubber & Plastic Products Coca-Cola CATERPILLAR USS HALLIBURTON Mosaic® PEPSICO 26 26 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#27Industry Trends Index Supportive of Industry Growth Institute for Supply Management - Purchasing Managers Index 50 Dec-15 Mar-16 Jun-16 GENUINE Sep-16 PARTS Jun-17 60.2 in June Sep-17 2018 Dec-17 Mar-18 Jun-18 27 COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. Dec-16 Mar-17#28Positive Indicators for our Industrial Parts Group Mi Mfg Industrial Production +1.9% in Q2 Robust energy sector ◆ PMI-22 straight LE MOTION INDUSTRIES months of growth! ◆ Consumer confidence remains high Our first combined Motion/EIS distribution center in Dallas. This collaborative effort consolidated 3 DCs and 2 branches into one DC, creating efficiencies and a lower cost structure. GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 28#29Industrial Parts Group Growth Opportunities ◆ Product Category Expansion - Automation, Process Pumps, and Safety ◆ Acquisitions 35% Investment in Inenco (Australia) April 2017 Added Empire Wire and Supply, Numatic Engineering, and Apache Belts and Hose in 2017 ◆ Expansion in New Markets ◆ Repair, Fabrication, and Assembly ◆ E-Commerce Vending, VMI, and Store Room Mgmt Share Gains with Major Accounts P&G Simplot Procter&Gamble GENUINE PARTS Anheuser-Busch Q BOEING® COMPANY Only 7% share of market - estimated at $80+ billion 29 29 All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#30SPR Business Products Group Highlights ◆ S.P Richards is the nation's second largest distributor of business products, office furniture, computer supplies and facilities, breakroom and safety supplies ◆ 2017 Sales at $2.0 billion; 2018 sales est. ~$2B 55 DC's in U.S. and Canada Long history of serving the independent reseller and national accounts ◆ Access to over 98,000 products 850+ leading manufacturers Global sourcing includes nine proprietary product 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 GENUINE PARTS COMPANY CAUTION Founded 1848 Acquired 1975 SPR Glue All ACCO Post- Business Products 10% Sharple KLINE 30 All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#31SPR Sales Millions Quarterly Sales History 2018 -2% +15% +3% +5% +9% +5% -5% +17% +14% +1% -0- -3% +4% +22% -5% -2% -2% $500 $475 $450 -3% -0- +4% -1% $425 -3% -4% $400 $375 $350 $325 $300 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 2017 +1.5% 31 2016 +2% 2015 +7.5% 2014 +10% 2013 -3% All Content is Company Confidential and Exclusive Property of Genuine Parts Company. GENUINE PARTS COMPANY#32SPR Business Products Group Overview Suppliers: Hewlett Packard, 3M, Hon, Newell, Kimberly Clark, Georgia Pacific.. 3M newell HON BRANDS . GP Chp Georgia-Pacific Kimberly-Clark PROFESSIONAL INTERNATIONAL invent PAPER ◆ Customers: Serves > 9,700 business product resellers Office DEPOT | Max Major Competitors Essendant Amazon/E-tailers Mass Merchants Specialty Distributors Importers Primary Sales Channels Internet Reseller 5% STAPLES Alternate Channel 22% Independent Resellers 53% Nat'l Accounts 20% 32 32 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#33SPR Drive for Diversification PRODUCT MIX Office Supplies FBS Furniture Tech 13% 8% 14% 15% 18% 17% 32% 35% 41% 47% 27% 33% 2010 2017 2020 (Est) Initiatives to Diversify Product Offering are Significantly Increasing Facility, Breakroom & Safety Supply Sales GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 33#34SPR U.S. U.S. GDP and Employment Levels Demand Drivers Relatively Stable, but Also Mixed.. U.S. GDP (% Change) +4.1% in Q2'18 Steady and Consistent New Job Growth for last 6 Years Service-Providing Employment ~1M New Jobs YTD in 2018 6.0 5.0 4.0 3.0 700 2.0 600 1.0 500 0.0 Q2'14 Q4'14 Q2'15 +1.7% in 13 400 Q4'15 Q2'16 Q4'16 +2.6% in 15 300 Q2'17 Q4'17 Q2'18 200 100 +2.3% in 17 +2.4% in 14 +1.6% in 16 0 Q2'14 Source: BEA.gov Q4'14 Q2'15 Q4'15 Q2'16 Q4'16 Q2'17 Q4'17 Q2'18 -4.5M in 2008/09 Tempered GDP Growth for Several Years GENUINE PARTS COMPANY 1M+ in 2010 2M+ in 2011 - 2017 Source: BLS.gov June 2018 Unemployment Rate at 3.9% 34 All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#35S.P. Richards/Essendant Merger Announced April 12, 2018 ◆ Enhances ability to compete in $100B business products space ◆ Stronger, more competitive national business products distribution Maximizes value for S.P. Richards Provides SPR combination with partner singularly focused on business products distribution market ◆ Combined company better positioned to serve customers - benefiting all stakeholders S.P.RICHARDS CO. A Tradition of Trust ESSENDANT™ POWERING POSSIBILITIES GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 35 55#36S.P. Richards/Essendant Merger ◆ GPC shareholders 51% ownership combined company value creation on a tax-free basis ◆ Significant cost & working capital synergies Strengthens management focus & capital allocation priorities Strengthens focus on core automotive/ industrial businesses ◆ Provides one-time $347M dividend Expected to close by end of 2018 S.P.RICHARDS CO. A Tradition of Trust ESSENDANT™ POWERING POSSIBILITIES GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 36#37SPR Business Products Group Growth Opportunities ◆ 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 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 37#38GPC Drivers and Opportunities APG Mi Demand Drivers 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 Industrial • Manufacturing expansion (ISM's PMI) • Manufacturing industrial production • Capacity utilization rates • Capital expenditure budgets/expansion Manufacturing employment in U.S. Opportunities and Initiatives 7.5% global market share – est. $200+ billion Approx. 500,000+ products & hundreds of thousands of customers across North America, Europe & Australasia New distribution, commercial programs, major A/C's, O/S sales, connectivity, niche markets – heavy duty, imports, paints and tools & equipment, store resets and retail initiatives 7% share of market - estimated at $80+ billion Approx. 7.1 million products & > 300,000 customers Growth via product category and line expansion, acquisitions, expansion in new markets, repair, fabrication and assembly services, e-commerce, vending, VMI and store room management and share gains with major accounts Business Products • U.S. gross domestic product (GDP) SPR • White collar employment numbers • Office occupancy rates in U.S. Low percentage share of market - est. $100+ billion More than 98,000 Products & Approx. 9,700 Customers Growth via market share initiatives, product line expansion (including proprietary brands), new products, enhanced marketing/electronic content and new or alternate channels via FBS diversification GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 38#39GPC Recent Financial Highlights YTD Q2 2018 v. Q2 '17 v. '17 2018 Net Sales (billions) $4.82 +18% $9.41 +18% Net Income (millions)* $234 +23% $420 +20% Diluted EPS* $1.59 +23% $2.85 +21% 39 39 All Content is Company Confidential and Exclusive Property of Genuine Parts Company. *Excludes transaction-related costs associated with the 2017 AAG acquisition as well as 2018 spin-off of S.P. Richards GENUINE PARTS COMPANY#40GPC Financial Focus Balance Sheet Highlights ◆ Strong cash position Above $350M+ at June 30, 2018 Prudent working capital management Working capital efficiency at 13.2% for YTD 2018 - 110% Accounts Payable/Inventory at June 30, 2018 Cash conversion cycle improved to 47 days at June 30, 2018 ◆ After-tax return on invested capital (ROIC) > WACC - ~15% ROIC YTD in 2018 → Significantly exceeding 7.5% WACC ◆ Comfortable with capital structure - Total debt of $3.2B at June 30, 2018 - < 50% Debt to total capital; ~2.5X Debt to EBITDA GENUINE PARTS 40 40 COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#41GPC Improving W/C Efficiency Trends 30.0 25.0 23.5% 20.0 15.0 10.0 Steady and consistent improvement and 5.0 positioned to further improve with effective asset management and sales and earnings growth 13.2% W/C Eff. 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 41 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#42GPC 140 DIO - 127 120 100 80 60 60 Improvement in Working Capital DSO - 45 DPO - 39 40 -DSO -DIO -DPO DIO - 103 DPO - 104 DSO - 48 20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 42 42 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#43GPC 145 CCC-133 135 125 115 105 95 85 15 75 65 99 55 45 .....Compressed CCC CCC CCC-47 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 43 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#44GPC Return On Invested Capital Consistently Exceeding WACC 15.4% 18.0 17.0 ROIC 16.0 15.0 14.0 14.9% Continue to target investments with > 15% ROIC 13.0 ~8% Spread 12.0 11.0 10.0 WACC 9.0 8.0% 7.5% 8.0 7.0 6.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 44 All Content is Company Confidential and Exclusive Property of Genuine Parts Company. GENUINE PARTS COMPANY#45GPC Steady and Strong Cash Flows ■Free Cash Flow Capital Expenditures 1,200 ■Dividend Payout 1,050 900 750 600 450 300 150 $1 Billion $400M $200M $400M 0 2012 2013 2014 2015 2016 2017 2018e 45 45 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#46GPC Commitment to Shareholders Priorities for Cash TAYERED STATES OFAMERICA YDRED DOLLA Reinvestment in Businesses ◆ Acquisitions Dividends ◆ Share Repurchases. GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#47GPC Recent Acquisitions APG Estimated SPR Annual Revenues 5 5 3 2015 4 Store Groups AEA Miller, Oil & Gas Lake Erie, Moss, JAL, Dinesol Malt $180M Connect-Air 2016 11 Olympus, Covs, Global, AMX, Auto-Camping, ASL, 5 Store Groups 6 Epperson, MO Power, Colmar, 2 Safety Zone, RMC Jan/San $600M OBBCO, Braas, CPS 12 4 2017 AAG, 6 Store Groups (+48 new stores), 35% Inenco N/A $2.1B (Australia), Stone Truck Parts, Numatic, Apache, Welch, Sulco T&E, Empire autoBarn, Universal 11 2 2018 N/A $60M Smith Auto in U.S. plus Sterling Engineering, (thru Q2) store group expansion Power Industries in Europe GENUINE PARTS 47 COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#48GPC 2017 Dividend Kings Dividend Stocks with 50+ Years of Increasing Dividends AWR American States Water Company 63 LANC DOV Dover Corporation 62 LOW Lancaster Colony Corporation Lowe's Companies, Inc. 54 54 NWN Northwest Natural Gas Company 62 NDSN Nordson Corporation 54 GPC Genuine Parts Company 61 FMCB Farmers & Merchants Bancorp 52 PH Parker-Hannifin Corporation 61 HRL Hormel Foods Corporation 51 PG The Procter & Gamble Company 61 TR Tootsie Roll Industries 51 EMR Emerson Electric Co. 60 CWT California Water Service Group 50 MMM 3M Company 59 SJW SJW Group 50 CINF Cincinnati Financial Corporation 57 FRT Federal Realty Investment Trust 50 VVC Vectren Corporation 57 SWK Stanley Black & Decker 50 CL Colgate-Palmolive Company 55 SCL Stepan 50 KO The Coca-Cola Company 55 ABM ABM Industries 50 JNJ Johnson & Johnson 54 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 48#49GPC 3 2.5 2 1.5 1 0.5 0 Commitment to Shareholders Dividend Record 2018 Annual Dividend $2.88 3% Yield and +7% from 2017 62 Consecutive Years of Increased Dividends 2018 49 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#50GPC Commitment to Shareholders Share Repurchases History (in millions) 1994-2004 # Shares 24.0 Cash Paid $649.9 2005-2009 18.2 782.3 2010-2014 8.2 495.3 2015 3.3 292.2 2016 2.0 181.4 2017 1.9 173.5 TOTAL 57.6 $2,574.6 17.4 Million Shares Remaining to be Repurchased Consistent History Of Returning Cash To Shareholders GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 50 50#51GPC Commitment to Shareholders 5-Year Returns to Shareholders 2013 2014 2015 2016 2017 Dividends $326.2 $347.3 $368.3 $386.9 $395.5 Share 120.6 95.9 292.3 181.4 173.5 Repurchases Total 446.8 443.2 660.6 568.3 569.0 Approx. $2.7 Billion Returned to Shareholders Over 5 Years 51 GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#52GPC Our Sustainability Commitment ENERGY LED lighting conversion Alternative sources (solar, battery, wind) 500+ active projects 15 million BTU reduction (25%) FLEET Rail vs truck conversion (18 mpg) Improved fuel economy/ vehicle selection criteria (10%) Route optimizations Millions of miles reduced COMMUNITY Sustainability ambassadors Awareness at local level Volunteer support programs Structured give back campaigns WATER Low-flow devices Natural water retention treatment vs runoff policy Usage reduction programs Closed loop systems WASTE Diversion for waste streams Recycle programs at source ► Packaging conversion/reduction Fiber recycle GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 52 52#53GPC GPC Outlook & Objectives 2018 Outlook . . . • Sales Growth +13-14% Stabilized Operating Margin EPS Growth +19-22% Cash from Operations in $950M-$1.0B Target Range Steadily Improving W/C Efficiency GENUINE . Key Long Term Annual Objectives Improve Sales by 6-8% Increase Operating Margin ● Grow EPS by 7-10% . Generate Solid Cash Flows Maintain Strong Bal. Sheet PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company. 53 53#54GPC Outlook & Objectives 2018 Outlook Sales growth +13-14% > Stabilizing operating margin EPS growth +19-22% > Cash from operations in $950-$1B target range Steadily improving working capital efficiency and CCC Key Long-term Annual Objectives Improve sales by 6-8% Increase operating margin Grow EPS by 7-10% Generate solid cash flows Maintain strong balance sheet GENUINE PARTS COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.#55GPC Thank You! NON SIBI SED ALIIS, GEORGIA HISTORICALS Genuine Parts Company In 1928, Carlyle Fraser purchased the Motor Parts Depot in Atlanta, Georgia for $40,000, and renamed the parts store Genuine Parts Company (GPC). The original store had annual sales of just $75,000, and six employees. Over the years, GPC, in relationship with the NAPA brand, grew rapidly as independent garages for car repair emerged to meet the needs of the nation's growing number of automobiles. GPC has continued to grow into an international service organization through the acquisition of companies in the automotive, industrial, and business products distribution industries. The Company has paid a cash dividend to shareholders every year since going public in 1948. At its 90th anniversary in 2018, GPC served hundreds of thousands of customers from more than 3,100 operations and had approximately 48,000 employees in North America, Australasia, and Europe. Erected by the Georgia Historical Society and Genuine Parts Company Contact Information: Carol Yancey - EVP & CFO: Sid Jones SVP IR: GENUINE PARTS 678-934-5044 Carol [email protected] 678-934-5628 Sid [email protected] COMPANY All Content is Company Confidential and Exclusive Property of Genuine Parts Company.