Q3'23

Earnings Presentation

October 19, 2023

GPC Snapshot (as of 9/30/2023)

Key Statistics

Founded

1928

Headquarters

Atlanta, GA

Countries Served

17

Locations

~10,680

Distribution Centers

~210

Warehouses

~700

Retail (Owned/Independent)

~9,770

Employees

~58,000

Market Capitalization

~$20.2B

TTM Financial Highlights

Revenue1

$23.0B

Automotive

62%

Industrial

38%

Segment Profit Margin2

9.9%

Free Cash Flow2

~$859M

Dividend Yield3

2.6%

Global Footprint

TTM Revenue by Region

15%

Europe

76%

North

America

9%

Australasia

Leading Global Distributor in Diversified End Markets

1See Appendix C 2See Appendix D 3Calculated based on annual dividend per share divided by share price as of 9/30/23

GPC Q3'23 EARNINGS PRESENTATION | 2

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, our expectations regarding our ability to capitalize on these business and economic trends and to execute our strategic priorities, and the updated full-year 2023 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 and the conflict in the Gaza strip; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; public health emergencies such as 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; 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 2022 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 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 Q3'23 EARNINGS PRESENTATION | 3

Key Messages

  • Solid quarter, which includes double-digitearnings growth
  • Strategic transformation to a global Automotive and Industrial company is a competitive advantage that distinguishes GPC in the marketplace
  • Continue to benefit from business mix and the geographic diversity of our operations
  • We want to thank our global GPC teammates for their hard work

Strategic Initiatives and Focused Team Execution Delivering Results

GPC Q3'23 EARNINGS PRESENTATION | 4

Q3'23 Performance

Sales

Gross Margin

EBITDA

Segment Profit2

Segment Margin2

Diluted EPS

$5.8B

36.2%

$565M $605M

10.4%

$2.49

Up 2.6%

Improved 130 bps

Up 7%1

Up 10%

Improved 70 bps

Up 12%1

At September 30

Cash From Operations

Working Capital3

Capital

Ample Liquidity

Financial

$1.1B YTD

$1.2B

Structure

$2.2B

Strength and

1.6x

Flexibility to

Free Cash Flow2

Drive Growth

$733M YTD

Total Debt to Adj

EBITDA (TTM) 1

All comparisons are YoY unless otherwise stated 1Adjusted for certain items in 2022 that the company believes are not representative of our continuing operations. Non-GAAP financial measures

GPC Q3'23 EARNINGS PRESENTATION | 5

reconciled in Appendix D 2Non-GAAP financial measures reconciled in Appendix D 3Working capital is defined as current assets less current liabilities.

Q3'23 Industrial Performance

Global Sales1

Global Comps1,2

Segment Profit3

Segment Margin3

$2.2B

+0.3%

$283M

12.9%

Up 0.6%

20% comp in the PY

Up 17%

Improved 180 bps

Market

Total Sales4

North America

+0.1%1

Australasia

+14.1%

1Global Industrial and North America results include one less selling day in the U.S., which the company estimates negatively impacted Global Industrial sales growth and comp sales growth by approximately 160bps

2See Appendix B; 3See Appendix C; 4Local Currency; All comparisons are YoY unless otherwise stated

Highlights:

  • 13th consecutive quarter of margin expansion
  • Making progress with sales excellence, pricing, e-commerce and other initiatives that are helping win profitable market share
  • Opened second fulfillment center consolidating various facilities while improving its productivity, efficiency, speed and service to its customers
  • Expect to exceed KDG synergy target of $50 million by end of year, a full year early

GPC Q3'23 EARNINGS PRESENTATION | 6

Q3'23 Automotive Performance

Global Sales1

Global Comps1,2

Segment Profit3

Segment Margin3

$3.6B

+0.6%

$322M

8.9%

Up 3.9%

9% comp in the PY

Up 4%

In-line with the PY

Market

Total Sales4

Comp Sales2,4

U.S.

(1.1%)1

(2.9%)1

Canada

+3.7%

+2.9%

Europe

+10.9%

+6.8%

Australasia

+6.2%

+4.7%

1Global Automotive and U.S. Automotive results include one less selling day in the U.S., which the company estimates negatively impacted Global Automotive sales growth and comp sales growth by approximately 100bps and US Automotive sales growth and comp sales growth by 170bps

2See Appendix B; 3See Appendix C; 4Local Currency; All comparisons are YoY unless otherwise stated

Highlights:

  • Total Automotive results benefited from global diversification
  • US Automotive below expectations, taking swift actions to address the key factors
  • Europe's eighth consecutive quarter of double- digit sales growth
  • Australasia team delivered record sales and profit

GPC Q3'23 EARNINGS PRESENTATION | 7

How We Win

Foundational Priorities for Strategic Investments

Talent &

Sales

Culture

Effectiveness

Develop high potential

Utilize data and analytics

talent and infuse

to understand our

capabilities into the

customer segments and

organization to build

drive solution-based

diverse, high-performing

sales and commercial

teams

strategies

Technology

Enhance data and digital capabilities to deliver a best-in-class customer experience, profitable growth and operational productivity

Supply

Emerging

Chain

Technology

Modernize operations

Lead in emerging

to increase productivity

technologies and leverage

and efficiency across

our unique positioning,

inventory, facilities and

global scale and

logistics capabilities

One GPC team approach

Mergers & Acquisitions

Acquire strategic assets and create value via scale, footprint, customer relationships, products and services and technology

GPC Q3'23 EARNINGS PRESENTATION | 8

Effective Capital Allocation

YTD 2023 Capital Deployment

35%31%

~$1.1B

15% 19%

Reinvestment

M&A

Share Repurchases

Dividend

Key Priorities

Reinvestment

  • $350M CapEx YTD
  • Projecting '23 CapEx of $375M - $400M

M&A

  • $211M YTD
  • Targeting additional acquisitions in '23

Share Repurchases

  • $172M spend for ~1.1M shares YTD
  • Plans for additional share buy-backs in '23

Dividend

  • $393M in cash dividends paid YTD
  • 2023 cash dividend of $3.80 per share, +6% from 2022
    • 67th consecutive year of increased dividends paid to our shareholders

GPC Q3'23 EARNINGS PRESENTATION | 9

2023 Outlook1

Current

Previous

Total Sales Growth

4% to 6%

4% to 6%

Automotive

4% to 6%

4% to 6%

Industrial

4% to 6%

4% to 6%

Diluted EPS

$9.20 to $9.30

$9.15 to $9.30

Adj Diluted EPS

$9.20 to $9.30

$9.15 to $9.30

Adj EPS Growth

10.3% to 11.5%

10% to 11.5%

Cash from Operations

$1.3B to $1.4B

$1.3B to $1.4B

Free Cash Flow2

$900M to $1.0B

$900M to $1.0B

Full-year growth rates and EPS assume FX headwind of <1.0%

OTHER ASSUMPTIONS

  • Corporate expenses ~$300M-$325M
  • Capex ~$375M-$400M
  • Depreciation and amortization ~$350M-$360M
  • Interest expense ~$80M
  • Tax rate 24.5%-25.0%

1Our guidance considers several factors, including recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the

GPC Q3'23 EARNINGS PRESENTATION | 10

potential impact on results. We will update full-year guidance during 2023, as appropriate. 2A non-GAAP measure (See Appendix D)

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Disclaimer

Genuine Parts Company published this content on 19 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 October 2023 12:26:33 UTC.