genuine parts investor presentationgenuineparts.investorroom.com/download/gpc+investor...gpc...
TRANSCRIPT
Genuine Parts Investor PresentationAugust 2020
2GPC INVESTOR PRESENTATION |
Safe Harbor Statement
FORWARD-LOOKING STATEMENTS: Some of the comments made during this conference call and information contained in our presentation constitutes 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,” and variations of such
words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, our expected ability to operate and protect
our workforce during the COVID-19 pandemic, our strategy to grow our higher-margin automotive and industrial businesses, the execution and effect of our cost savings initiatives, our efforts
and initiatives to help us emerge from the pandemic well-positioned, our ongoing efforts to maintain compliance and flexibility under our debt covenants, our liquidity position and actions to
maximize cash flow to continue to operate during these highly uncertain times and plans for future cost savings. The Company cautions that its 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, the extent and
duration of the disruption to our business operations caused by the global health crisis associated with the COVID-19 outbreak, 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; the Company’s ability to maintain compliance with its debt covenants; the Company's ability to successfully integrate acquired businesses into the Company and to
realize the anticipated synergies and benefits; the Company's ability to successfully divest businesses; the Company's ability to successfully implement its business initiatives in its two business
segments; slowing demand for the Company's products; the ability to maintain favorable supplier arrangements and relationships; disruptions in our suppliers' operations, including the impact of
COVID-19 on our suppliers as well as our supply chain; changes in national and international legislation or government regulations or policies, including changes to import tariffs, short term
government subsidies, and the unpredictability of such changes and their impact to the Company and its suppliers and customers, data security policies and requirements as well as privacy
legislation; changes in general economic conditions, including unemployment, inflation (including the impact of tariffs) or deflation and the United Kingdom's exit from the European Union,
commonly known as Brexit, and the unpredictability of the impact following such exit from the European Union; changes in tax policies; volatile exchange rates; volatility in oil prices; significant
cost increases, such as rising fuel and freight expenses; the Company's 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 the Company's information systems, as well as
other risks and uncertainties discussed in the Company’s latest SEC filings. The statements are only as of the date they are made, and the Company undertakes no duty to update its forward-
looking statements made during this presentation or in these materials except as required by law. Actual results may vary materially and, as such, you are cautioned not to place undue reliance
on these forward-looking statements.
NON-GAAP MEASURES: This presentation contains adjusted net income from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted tax rate,
adjusted gross profit, adjusted operating and non-operating expenses, net sales excluding divestitures, segment profit excluding divestitures, segment profit margin excluding divestitures, 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.
3GPC INVESTOR PRESENTATION |
Key Messages
Focused on Maximizing Shareholder Value
01 Leading global distributor with scale and brand strength to capture market share
03 Leverage distribution expertise, efficiencies and shared services across portfolio of businesses
02Strong track record of strategic acquisitions to drive growth in large, fragmented addressable
markets
04 Optimizing portfolio and organizational structure for profitable growth
05 Strong balance sheet, cash flow, disciplined capital allocation and history of consistent dividends
4GPC INVESTOR PRESENTATION |
Operating Through the Challenges of COVID-19
Working Together As One GPC Team
Focused on prioritizing the safety and well-being of our employees and their families, customers,
suppliers and communities
Remained fully operational to fulfill critical customer needs
Executed with agility through the pandemic, working as one team to quickly and effectively adopt new safety
protocols to ensure a safe work environment
Intensified approach to managing operations enabled us to enhance balance sheet flexibility, achieve
meaningful cost savings and advance operational excellence
Advanced ESG initiatives, including commitment to diversity and inclusion
Sale of S.P. Richards marks a culmination of a multi-year series of acquisitions and divestitures as part of
our strategy to simplify and optimize our portfolio
5GPC INVESTOR PRESENTATION |
Genuine Parts Company Snapshot (NYSE: GPC)
Leading Global Distributor in Diversified End Markets
GLOBAL FOOTPRINT
TTM 2020 Revenue by Region1,3
KEY STATISTICS1
Founded 1928
Headquarters Atlanta, GA
Countries Served 14
Locations
• Warehouses
• Distribution Facilities
• Retail (Owned/Independent)
10,575
900
174
9,500
Employees ~50,000
Market Capitalization2 ~$13.1B
TTM 2020 FINANCIAL HIGHLIGHTS1
Revenue3
• Automotive
• Industrial
$16.5B
65%
35%
Segment Profit Margin3 7.7%
Free Cash Flow4 ~$1.3B
Dividend Yield5 3.6%
77%North
America 9%Australasia
14%Europe
1 As of 6/30/20 unless otherwise noted; 2 As of 8/3/20; 3 Estimates, excluding divested and discontinued operations; 4 Refer to Reconciliation of Non-GAAP measures; 5 Calculated based on estimated
annual dividend per share divided by share price as of 6/30/20
6GPC INVESTOR PRESENTATION |
Long Track Record of Disciplined Execution to Drive Profitable Growth
$10.1 $11.2
$12.5 $13.0 $14.1
$15.3 $15.3 $15.3 $16.3
$18.7 $19.4
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$2.50 $3.00
$3.58
$4.14 $4.40
$4.61 $4.63 $4.59 $4.71
$5.68 $5.69
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Strong History of Sales
and Profit Growth
Sales and Profit Have Increased in 87 and
75 Years of 92-Year History, Respectively
Dividend Growth
2020 Marks GPC’s 64th Consecutive Year
of Dividend Increases
1925Established
1928Founded
1948IPO
1968Begin trading on
NYSE: GPC
1975Acquired
1976Acquired
1998Acquired
Revenues ($B)1 Adjusted EPS1
2013Acquired GPC
Asia Pacific
2014Established NAPA
Mexico
2017Acquired
35% Ownership
2018
100% Ownership
2019Sold
Auto Todoand EIS
2020Sold S.P.
Richards
1 As Reported
2020Inenco
Rebranding
7GPC INVESTOR PRESENTATION |
Automotive Snapshot
Business Highlights
• Largest global auto parts network
• 155 global distribution centers and ~9,500 stores,
~2,500 company owned / ~7,000 independents
• 25,000+ global repair center partnerships
(AutoCare, AutoPro, RAS, GroupAuto), 18,500+
NAPA North American AutoCare Centers
• 90% of NA NAPA Sales are private label products
• Global Sales by segment:
‒ ~80% Commercial / DIFM
‒ ~20% Retail / DIY
Growth Opportunities
• Maximize value of NAPA and other key brands
• Expand global footprint
• Enhance commercial programs
• Upgrade store merchandising and retail services
• Strengthen omni-channel capabilities
2019 Sales by Region
69%
20%
11%
North America
Australasia
Europe
Revenue ($B) Adj. Op Income ($B) & Margin (%)
Program Partnerships & Major Accounts Select Store & Product Banners
North America
Europe
Australasia
$729 $715 $720
$854 $830
9.1% 8.8% 8.4% 8.1% 7.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2015 2016 2017 2018 2019
Adj. Operating Income Operating Margin
$7.95 $8.04 $8.58
$10.53 $10.99
-1.0%1.3%
6.2%
2.1%4.8%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
2015 2016 2017 2018 2019
Revenue % Change
8GPC INVESTOR PRESENTATION |
Industrial Snapshot
Business Highlights
• Leading industrial parts MRO distributor in North
America and Australasia; acquired Inenco in
Australia in July 2019
• 23 distribution centers, 45 Service Centers, 700+
branches across North America and Australasia
• Access to a broad portfolio of 7M+ parts
• Serves a diverse customer base across several
industry sectors
‒ Equipment & Machinery
‒ Food Products
Growth Opportunities
• Expand product categories
• Pursue strategic acquisitions
• Expand into new geographic markets
• Enhance value-added services
2019 Sales by Region
93%
7%
North America
Australasia
Revenue ($B) Adj. Op Income ($B) & Margin (%)
Select Customers 2019 Sales by Product Category
$409 $397 $440
$487 $522
7.6%7.4%
7.6%7.7%
8.1%
7.0%
7.5%
8.0%
8.5%
9.0%
$-
$100
$200
$300
$400
$500
$600
2015 2016 2017 2018 2019
Adj. Operating Income Operating Margin
$5.46 $5.40 $5.81
$6.30 $6.53
-2.0%-0.1%
9.4% 8.6%
3.2%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
2015 2016 2017 2018 2019
Revenue % Change
‒ Pulp & Paper
‒ Iron & Steel
9%
3%
7%
9%
9%
13%
17%
34%
Misc. Products & Services
Linear
Electrical & Automation
Seals, Pumps & Hoses
Material Handling
Hydraulics / Pneumatics
Industrial / Safety Supplies
Bearings / Power Transmission
9GPC INVESTOR PRESENTATION |
The Power of One GPC
Leveraging Leading Brands, Common Distribution Processes and Logistical Expertise Across Platforms
Leading Brands
Shared Services
Business Practices Systems Facilities
Technology Transport Freight
10GPC INVESTOR PRESENTATION |
We Strive to be a World-Class Service Organization
Investment of Choice
Employer of Choice
Supplier of Choice
Valued Customer
Good Corporate Citizen
11GPC INVESTOR PRESENTATION |
Our Transformational Journey…
…and We Are Just Getting Started
2013
• Four segments: Automotive,
Industrial, Office Products, Electrical
• North American and Australasian
operations
• Expanded distribution footprint
Today
• Two segments: Automotive and
Industrial
• Expanded operations in Europe in
addition to North America and
Australasia
• Created global transformation office
under new leadership
• Formed Digital Center of Excellence
• Enhanced shared services platform
across businesses
• Increased capabilities in advanced
data analytics
2020+
• Continue portfolio optimization
• Further expand North American,
Australasian and European
operations
• Focus on market leading
automotive and industrial
businesses
• Drive efficient and productive
cost structure
12GPC INVESTOR PRESENTATION |
Experienced Leadership Team with Deep Industry Expertise
Driving a Culture of Continuous Improvement, Accountability and Integrity
Paul DonahueChairman, CEO
Joined: 2003
Current Role: 2016
Carol YanceyEVP, CFO
1991
2013
Will StengelEVP, CTO
2019
2019
Greg MillerEVP, CIO
2011
2018
Jim NeillEVP, CHRO
2006
2013
Treg BrownEVP, M&A
1994
1999
Kevin HerronPresident, U.S. Automotive
1983
2019
Alain MassePresident, Canadian Automotive
2011
2015
Frank BaduelCOO, European Automotive
1999
2020
Rob CameronManaging Director, Australasia Automotive
2003
2017
Randy BreauxPresident, North America Industrial
2011
2019
Roger JowettPresident, Australasia Industrial
2014
2019
13GPC INVESTOR PRESENTATION |
Supportive Board with Diverse Expertise and Experience
Front Row
Elizabeth Camp (2015)President & CEO,
DF Management, Inc.
Robert Loudermilk, Jr (2010)President & CEO,
The Loudermilk Companies
Donna Hyland (2015)President & CEO,
Children's Healthcare of Atlanta
Paul Donahue (2012)Chairman & CEO,
Genuine Parts Company
Gary Fayard (2014)Retired CFO,
The Coca-Cola Company
Wendy Needham (2013)Retired MD, Global Auto Research,
Credit Suisse First Boston
Back Row
Jean-Jacques Lafont (2020)Co-Founder & Executive Chairman,
Alliance Automotive
P. Russell Hardin (2017)President,
Robert W. Woodruff Foundation
Richard Cox, Jr. (2020)Chief Information Officer,
Cox Enterprises
John Johns (2002)Retired Chairman & CEO,
Protective Life Corporation
John Holder (2011)Chairman & CEO,
Holder Properties
E. Jenner Wood (2014)Retired Executive Vice President,
SunTrust Banks, Inc
Recent Updates and Composition
✓ Added Jean-Jacques Lafont of Alliance Automotive Group
✓ 83% Independent Directors
✓ 25% Women; 42% Minorities
✓ 6.8 Year Average Tenure
Expertise and Experience
CEO / Leadership Position 92%
Finance and Accounting 50%
Government / Regulatory 50%
Automotive 33%
Distribution / Supply Chain 25%
Legal 25%
International 25%
14GPC INVESTOR PRESENTATION |
Engrained ESG Best Practices Throughout Organization
An ESG Focused Organization Benefiting All Stakeholders
Environmental
• Completed 752 lighting retrofits offsetting
52M lbs of CO2 (2015-2018)
• Our fleet management program recycled
more than 20 tons of tires, 3,500 gal of oil
and more than 7,800 lbs of cardboard and
scrap material (2018)
• Recycled 6,445 tons of waste in 2018
through comprehensive waste recycling
program
• Vendors meet strict supply chain
sustainability standards
Social Governance
• Donated time, resources and $5M+ in
2018 to:
‒ United Way
‒ Intrepid Fallen Heroes
‒ City of Hope
‒ American Cancer Society
‒ Starlight Children’s Foundation
• Provided health and wellness benefits to
employees, including biometric screenings,
fitness challenges, eLearning modules and
counseling/recovery assistance programs
• Increased spend with diverse suppliers
by 8% in 2018 from 5,200 diversity supplier
partners
• Diversity & Inclusion Committee to advance
initiatives supportive of an environment built on
respect, dignity & fairness
• Formalizing our sustainability governance,
including ongoing shareholder engagement
and routine updates to the Board of Directors
• Ambassadors will serve on cross company
corporate sustainability committee to drive
positive change
• Safety Council serves as an internal advisory
group approving policy, actions and
communications
• Enhancing existing corporate values to
explicitly mention sustainability, responsibility,
stewardship, ethics and community values
15GPC INVESTOR PRESENTATION |
Our Sustainability Commitment
Significant Progress on Our Journey to Become a More Sustainable Organization
ENERGY FLEET COMMUNITY WATER WASTE
✓ LED lighting conversion
✓ Alternative sources
(solar, battery, wind)
✓ 500+ active projects
✓ 15M BTU
reduction (25%)
✓ Rail vs truck conversion
(18 mpg)
✓ Improved fuel economy/
vehicle selection criteria
(10%)
✓ Route optimizations
✓ Reduction of millions of
miles
✓ Sustainability
ambassadors
✓ Awareness at local level
✓ Volunteer support
programs
✓ Structured give back
campaigns
✓ Executive non-profit
board service
✓ Low-flow devices
✓ Natural water retention
treatment vs runoff
policy
✓ Usage reduction
programs
✓ Closed loop systems
✓ Diversion for waste
streams
✓ Recycle programs
at source
✓ Packaging conversion/
reduction
✓ Fiber recycle
16GPC INVESTOR PRESENTATION |
Favorable Long-Term Macro Trends Across Our Businesses
Well-Positioned to Benefit from Economic Recovery
Automotive Industrial
Industry Drivers
• Total vehicle fleet growth
• Increasing average age of fleet
• Affordable gas prices
• Positive long-term growth outlook for miles driven
• Industrial production
• Capacity utilization rates
• Capital expenditure budget expansion
• Manufacturing employment growth in U.S.
North America
• 2019 U.S. comp sales up 3.3% and solid growth in operating profit
• 2019 Canada comp sales flat but expect share gains driven by
commercial programs, specifically major account customer
segments
• 12M+ Retail NAPA Rewards members, representing 16% of retail
sales
• Slowing trend in industrial economy persisted throughout 2019
• 3 of 14 product categories posted positive YoY sales in 2019
Australasia• Mid-single digit comp growth and solid growth in operating profit in
2019
• Inenco acquisition performing inline within expectations in first 6
months of ownership
Europe
• 2019 comp sales flat, sequential improvement from mid-to-high
single digit declines mid-year
• U.K. stabilizing on Brexit agreement
17GPC INVESTOR PRESENTATION |
Addressable Market of $430B+
Proven Ability to Consolidate and Grow within Large and Fragmented Markets
Automotive
$230B+ Global Market
Industrial
$200B+ Global Market
Regions Market Share Industry Growth
United States 7% +2-3%
Europe 5% +1-2%
Canada 14% +2-3%
Australasia 20% +2-3%
Mexico 1% +5-6%
Total 8% +2-3%
Regions Market Share Industry Growth
North America 3% +2-3%
Australasia 4% +2-3%
Total 3% +2-3%
$125 $82
$9 $7 $6
United States
Europe
Canada
Australasia
Mexico
$190
$10
North America
Australasia
18GPC INVESTOR PRESENTATION |
Sustainable Competitive Advantages
Well Positioned as a Leading Global Distributor
18GPC INVESTOR PRESENTATION |
Global Presence
and Brand Strength
Best-in-Class Operating
and Distribution Efficiencies
Enhanced
Technology Solutions
• Enduring Company history
• Largest global automotive aftermarket
and industrial businesses
• Expanding the NAPA and Mi brands
globally
• Shared services and technologies
• Purchasing scale with shared
suppliers across automotive and
industrial
• Strategically collocated facilities
• Acquisition and integration expertise
• Digital Center of Excellence
established five years ago
• Agile development of digital
technologies to innovate our supply
chains
• Utilizing the power of data analytics to
make better decisions about how we
price for our customers
19GPC INVESTOR PRESENTATION |
Strategic Growth Framework
A Consistent Framework to Coordinate Growth Plans Supported by Operational Excellence
030201
Acquire new customers and
increase existing wallet share
Introduce new
products and services
Strategic expansion
into new geographies
• Maximize the value of global
branding opportunities
• Enhancement of omnichannel
capabilities
• Retail store remodel and
enhancements
• Leverage NAPA Rewards Program
• Introduction of new omnichannel
offerings
• Develop commercial programs and
technology solutions for customers
• Innovate digital tools to better serve
customers
• Expand NAPA brand into Europe and
Australasia
• Make strategic acquisitions to
complement existing operations and
expand footprint
• Rebranding of Mi Asia Pacific
20GPC INVESTOR PRESENTATION |
History of Strong Cash Flow Supporting Growth and Capital Allocation
Driving Strong Cash Flows
$845
$679 $625
$906
$1,057
$790
$1,159
$946 $815
$1,145
$892
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Working Capital
Cash from Operations ($M)
Working Capital Initiatives
• Sale of accounts receivables
• Sophisticated inventory management
• Extended terms and programs with vendors
Cost Savings Initiatives
• Reinvestment in core businesses to enhance
efficiencies and productivity
• Significant opportunities to improve cost structure
Cash Flows
• Steady strength in annual cash generation
• Resilient cash flows in economic downturns
• Expect continued strong cash flows
105
8579 78
6961
5547 48
41 38
26%22% 22%
18%14% 13% 11% 11% 11% 9% 8%
0%
10%
20%
30%
40%
50%
60%
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Cash Conversion Cycle (Days) Working Capital (% of Sales)
21GPC INVESTOR PRESENTATION |
Durable Balance Sheet and Ample Liquidity
• Fixed and variable-rate debt maturing 2021-2034
• In compliance with debt covenants as of June 30, 2020; negotiated more favorable covenants, effective May 1, 2020
• Liquidity strengthened in Q2; ~$2.6 billion available liquidity entering July
• $500 million A/R Sales Program; $500 million additional international debt; $400 million SPR proceeds
DEBT MATURITY SCHEDULE2,3BALANCE SHEET HIGHLIGHTS1 LIQUIDITY PROFILE1
Cash / Cash Equivalents $1.0
Accounts Receivable $1.8
Inventory $3.4
Total Assets $13.3
Accounts Payable $3.7
Total Debt $3.2
Total Liabilities $10.4
Working Capital4 $1.3
$110
$188
$715
$250
$360 $358$400
$196
$336
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+
Ample Liquidity to Withstand Challenging Economic Environment
2.85% 2Q20 Average Interest Rate
($B)
1 As of 6/30/2020; 2 Excludes revolver; 3 As of 12/31/2019; 4 Working capital is defined as current assets less current liabilities; 5 Total credit capacity represents total committed capacity under the
revolving credit facility plus the amount of all other debt outstanding; 6 As defined in our credit agreements
Total Credit Capacity5 $4.8
Less Total Debt: ($3.2)
Unused Credit Capacity $1.6
Cash $1.0
Total Available Liquidity $2.6
Total Debt to EBITDA63.2x
($B) ($M)
22GPC INVESTOR PRESENTATION |
Disciplined Capital Allocation
Taking Necessary Steps to Conserve Cash
47%
29%
16%
8%
M&A Dividend Reinvestment Share Repurchases
2017-2019 Capital Deployment
~$4.3B1
22
Current Priorities
Dividend
• $0.79 per share, representing a 4% increase from 2019
• Dividend yield2 of 3.6%
Reinvestment
• 2020 CapEx of $150M - $200M (35-50% reduction from original plan)
M&A
• Limited to small, bolt-ons, for balance of 2020
Share Repurchases
• Temporarily suspended share repurchases
1 Includes proceeds from divestitures; 2 As of 6/30/20
23GPC INVESTOR PRESENTATION |
Strategic Approach to M&A
Core Competency with a Proven History of Successful Acquisitive Growth
Strategic Filters
Key Product Category Extension
Market Leadership
Geographic / Market Expansion
Capability Enhancements
Operating and Cost Synergies
Talent Acquisition / Retention
Financial Criteria
Accretive Sales Growth Rates
Accretive to EPS within First Year
ROIC at 15% within 3 Years
Post-Synergy Purchase Price
Multiple Below Our Trading Multiple
24GPC INVESTOR PRESENTATION |
64 Consecutive Years of Dividend Growth
Strong Track Record of Paying Consistent Dividends
'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 20E
Dividend History
• 2020E annual dividend of $3.16/share, a 4%
increase
• Consistent 3%+ dividend yield
• Targeted payout range of 50% to 55%
• Among “2019 Dividend Kings” - 26 companies
with 50+ years of increasing dividends
$3.16
$0.21
25GPC INVESTOR PRESENTATION |
Compelling Investment Thesis
Leading global Automotive and Industrial distributor with scale to grow market leading positions in large fragmented
markets with favorable long-term trends01
Leveraging sustainable competitive advantages including global presence, brand strength, best in class operating and
distribution efficiencies and enhanced technology solutions02
Streamlined portfolio to focus on key Automotive and Industrial markets with well defined M&A criteria for expansion04
Strong balance sheet, ample liquidity and significant free cash flow combined with disciplined capital allocation
maximizes shareholder value creation05
Solid track record of consistent sales and earnings growth with strategic framework to enhance profitability through
increased productivity and margin expansion 03
26GPC INVESTOR PRESENTATION |
Appendix
27GPC INVESTOR PRESENTATION |
Reconciliation Tables
Free Cash FlowTrailing Twelve Months
(in thousands) June 30, 2020
Net cash provided by operating activities $ 1,564,765
Less: Purchases of property, plant and equipment (270,047)
Free Cash Flow 1,294,718$