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Investor

Presentation


Safe Harbor Statement

Some of the comments made today will be forward-looking and are made under 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. The Company's actual results could differ materially from any forward-looking statements due to several important factors, including, among other things, slowing demand for the Company’s products, changes in general economic conditions, including, unemployment, inflation or deflation, high 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 Company’s ability to successfully implement its business initiatives in each of its four business segments, the uncertainties and costs of litigation, as well as other risks and uncertainties described in the Company's latest SEC filings. The Company assumes no obligation to update any forward-looking statements made during this presentation or in these materials except as required by law.

2


Investment Highlights

Leading distributor in diversified end markets

Proven track record of steady growth

Solid balance sheet with meaningful free

cash flow generation

Committed to increasing shareholder value

Opportunity for market share growth in

fragmented industries

Large customer base built upon

long-standing relationships

3


Company Overview

Founded in 1928

Leader in supplying

fragmented end-markets:

- Automotive Parts (APG)

- Industrial Parts (Motion Industries)

- Office Products (S.P. Richards)

- Electrical / Electronic Materials (EIS)

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

% Net Sales by Segment

12-Mos. Ended December 31, 2014

$15.3 Billion

#1 or #2 in Every Segment

11%

31%

5%

53%

4


Traded on NYSE:

“GPC” 1968

Track Record of Success

Acquired Motion

Industries 1976 GPC Founded

1928

GPC Record Sales

& Earnings

Acquired

EIS 1998 Acquired

S.P. Richards 1975 NAPA

Established 1925 IPO 1948

GPC = Quality + Consistency + Growth

Strong history of sales & profit growth

- Sales have increased in 63 of the last 65 years

- Profit has increased in 50 of the last 54 years

1925 1945 1955 1965 1975 1985 1995 2005 2014

2013 1935 1945 1955 1965 1975 1985 1995 2005

Dividend growth

- 2015 marks GPC’s 59th consecutive year of dividend increases

5


Ten Year Sales History

7.5

8.5

9.5

10.5

11.5

12.5

13.5

14.5

15.5

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

+9.0%

Profit

+11%

$ Billions

Profit

+9% Profit

+6.5% Profit

-6% Profit

-16% Profit

+19% Profit

+19% Profit

+16% Profit

+6%* Profit

+10%*

+7.5% +6.9%

+3.7% +1.6%

-8.7%

+11.4%

+11.2% +4.5%

+8.2%

Record Sales and EPS in 2014

** 5th Consecutive Year **

6 * Comparative Results


Automotive Parts Group Highlights

Largest auto parts network in North America

2014 Sales at $8.1 billion

- US: 60 DC’s & ~ 6,000 stores (1,100 Co. owned)

- Canada:12 DC’s & ~ 700 stores (200 Co. owned)

- Mexico: 11 DC’s & 15 Co. Owned stores

- Balkamp: Parts Re-Packager

- Rayloc: Brake Products Distributor

- Altrom: OE Import Parts

- Heavy Vehicle Parts Group: Class 6,7,8 trucks

8 DC’s & 481 Store footprint in

Australia and New Zealand

Superior NAPA brand name

Highly acclaimed customer service

Positioned to benefit from positive

industry trends

53%

NAPA Established 1925

7


Quarterly Sales History

$-

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

2011 +8% 2009 -2% 2010 +7% 2013 +18.5% 2014 +8%

Sales

Billions

-5% -1%

+6% +6%

+7% +7% +9% +9%

+9% +9%

+6% +6%

+4% +2.5%

+5% +3%

+22% +23%

+4%

Sales

YOY

+25%

+22%

-7%

+5% +4%

8


Automotive Parts Group Overview

Sell primarily (90%) NAPA

branded products to the

automotive aftermarket

Differentiators: product

quality and breadth, service

capabilities & technology offering

Commercial/DIFM customers

represent professional service repair

facilities and account for 70-75% of

NAPA sales

15,000+ NAPA AutoCare Centers

Major Accounts: AAA, Goodyear,

Firestone, TBC, Midas, CBAdvantage

Retail/DIY customers represent the

individual consumer and account for

25-30% of NAPA sales

Major Competitors

U.S. - AutoZone, Advance Auto Parts & O’Reilly

Canada - Uni-Select & AAP/Carquest

Australasia - Supercheap, Burson & Autobarn

Major Account Customers

9


The Automotive Aftermarket

Market Trends Favoring the Larger DIFM Segment

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2002 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017*

DIFM

DIY

Source: Auto Care Association 10

* Forecasted

billions

$102B*

$54B*

$91B

$49B

+3.5%

5-Yr

CAGR

+3.3%

5-Yr

CAGR


The Vehicle Fleet

0

40

80

120

160

200

240

280

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2020

128 127 126 125 125 123 122 120 119 120

279

115 120 123 127 128 127 128 129 130 132

7 7 8 8 8 8 8 8 7 8

Veh

icle

s i

n M

illio

ns

Heavy

Light Trucks

Cars

Steady and Consistent Trend Total Vehicle Registrations

11

1%+ CAGR

Estimated

thru 2020

260M Vehicles

+1.5% YOY Source: Auto Care Association, BB&T


Average Age of Vehicles Increasing

8

8.5

9

9.5

10

10.5

11

11.5

12

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Light Trucks Passenger Cars

Passenger Cars and Light

Trucks at 11.4 Years in 2014

Average Age

All Light Vehicles

11.4 Years

Source: AAIA / R.L. Polk & Co.

11.4

12


Vehicle Fleet Trends

$0

$200

$400

$600

$800

$1,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+

$403 $484

$573 $644 $671

$741 $776 $829 $868 $861 $873 $857

$776 $802 $812

An

nu

al

Sp

en

d p

er

Veh

icle

Vehicle Age

Consumers Are Maintaining Older Vehicles

13

Prime Years for Aftermarket Repair

Start in Year 6

Vehicles 6+

Years of Age

>75% of Fleet

Avg. Repair

Cost/Year

1-5 Yr = $555

6-12 Yr = $829

> 12 Yr = $797

Source: IMR, Inc. Automotive Research, BB&T


Vehicle Miles Driven

2.50

2.60

2.70

2.80

2.90

3.00

3.10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2.99 3.01 3.03

2.98

2.96 2.97

2.95 2.95 2.97 3.00

An

nu

al

Mil

es in

Tri

llio

ns

Historical Peak

Miles Driven in U.S. – Strengthening Trends

Miles Driven:

+0.3% in 2012

+0.6% in 2013

+1.4% thru

November 2014

3.0T

Historical Positive Correlation for Industry

Source: US DOT 14


Stable Gas Prices = More Miles Driven

~ Industry can absorb gradual price increases, but sharp spikes can have an impact ~

Gas Prices v. Miles Driven

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Gas Prices & Miles Driven - % Change from Same Mo. Prior Year

Gas Miles

Miles Gas Prices Source: US DOT/EIA 15


Automotive Parts Group - Growth Opportunities

Key Areas of Focus NAPA Initiatives

New Distribution • Plans for New NAPA AUTOPARTS stores; Expansion in

Australasia and at NAPA Mexico

NAPA AutoCare • 15,000+ Independent AutoCare Members

• Approx. $1.2 Billion in 2014 & 10%+ Growth

Major Accounts • Nearly $1.9 Billion in 2014 & 10%+ Growth

Outside Sales • Adding Outside Sales Representatives

Connectivity • Adding Installer Connectivity

Special Markets • Heavy Duty Parts, Import Parts, Paint, Tools & Equipment

Store Resets & Upgrades • Ongoing program to consistently refresh and upgrade stores

16


Exego / Australasian Acquisition

Renamed GPC Asia Pacific

Market Share Leader in

Australia and New Zealand

- Performing as Planned

Added 50+ stores

since April 1, 2013

- 481 Company owned

stores today

17


Motion Industries – Industrial Parts Group

Industrial Parts Group Highlights Leading industrial parts MRO

distributor in North America


- 15 DC’s and 562 branches and service

centers in the U.S., Canada and Mexico

Proven track record with > 67 yrs.

in the industry

Efficient supply chain and

vendor partnerships

High customer service levels

and technical sales support

Industry leading E-Business capabilities

Access to over 5.6 million products

- Global manufacturing base

Very large and fragmented industry

31%

Founded 1946

Acquired 1976

18



$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

Sales

Millions

2011 +19% 2009 -18% 2010 +22% 2012 +7% 2013 -0-% 2014 +8%

-16% -22% -22%

-11%

+9%

+26% +29% +24%

+19%

+18%

+13%

+12% +8% +4.5%

+2%

-2% -1% -2.5%

+3%

+4%

+7%

Sales

YOY

+24%

+10% +10%

19


Suppliers: SKF, Baldor, Gates, Rexnord, Timken and Eaton

Customers represent all industry groups, including Equipment & Machinery, Food Products, Iron & Steel, Pulp & Paper and Mining & Aggregate

Industrial Parts Group Overview

Sales by Product Category

Bearings & Power

Transmission

39%

Industrial & Safety

15%

Other

9% Hose

5%

Hydraulics & Pneumatic

14%

Electrical & Automation

8%

Major Competitors

Applied Industrial Technologies

Kaman (Industrial Technologies Div.)

DXP Enterprises

20

Material Handling

8%


Top Industries

Industrial Parts Group

OEM

Food Products

Pulp & Paper

Iron & Steel

Fabricated Metals

Automotive

Chemicals & Allied Products

Coal, Aggregate & Cement

Lumber & Wood

Rubber & Plastic Products

Oil & Gas

Utilities

Equipment Rental & Leasing

Ports & Rail

Growth Industries

21



60.00

65.00

70.00

75.00

80.00

85.00

90.00

95.00

100.00

105.00

Industry Demand Drivers Relatively Stable

Strengthening trends following lows in June 2009

101.9

78.1

Manufacturing Industrial Production Manufacturing Capacity Utilization

Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14

22



Growth Opportunities

Product Category Expansion

- Automation

- Process Pumps

- Safety

Acquisitions (CSI, AST, Paragon)

Growth Industries

Repair, Fabrication and Assembly

E-Commerce

Vending, VMI and Store Room Management

Only 6% share of market –

estimated at $70 billion

23


Office Products Group Highlights

S.P Richards is the nation’s second largest distributor of business products, office furniture and computer supplies


- 44 DC’s in U.S. and Canada

Long history of serving the independent reseller and “mega” dealer

Access to over 55,000 products

- >500 leading manufacturers

- Global sourcing includes 8 proprietary product brands

Superior fill rates, accurate and timely shipments and competitive pricing

Database management, logistical support, e-commerce and a comprehensive array of marketing programs

11%

Founded 1848

Acquired 1975

24



$300

$325

$350

$375

$400

$425

$450

$475

$500

-2%

-1%

-1%

+3%

+4%

Sales

YOY

-7%

-6%

-4%

-1%

-5%

-1%

Sales

Millions

-0-

+3%

+5%

+4%

+3%

-1%

2011 +3% 2009 -5% 2010 -0-% 2012 -0-%

-1%

-3%

2013 -3%

-3%

-4%

2014 +10%

-0-

+15%

+22%

25


Office Products Group Overview

Suppliers: Hewlett Packard, Avery Dennison, 3M, Smead, Fellowes and HON

Customers: Thousands of business product resellers

- 82% of sales to Independent Dealers

- 18% of sales to National A/C’s

Major Sales Categories

Office

Supplies

44%

Tech Products

29%

Facility/Breakroom

Solutions

12%

Office

Furniture

15%

Major Competitors

United Stationers

26


Demand Drivers Relatively Stable, but Lagging

0

100

200

300

400

500

600

700

Q4'10 Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14

Service-Providing Employment

Source: BLS.gov

-4.5M in 08/09

+1.3M in 10

+2.0M in 11 & 12

+2.1M in 2013

Total Workers in 2014

Back to 2007 Levels

U.S. GDP and Employment Levels

+2.3M

2014

27

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

Q4'10 Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'15

U.S. GDP (% Change)

Source: BEA.gov

-3.1% in 09 +2.3% in 12 +2.5% in 10 +1.6% in 11

GDP Expected to

Improve Further in

2015

+2.4%

in 2014

+2.2% in 13


Office Products Group


Market Share Initiatives

Product Line Expansion

New Products

Private Brand Expansion

Enhanced Marketing and Electronic Content

Alternate Channel Growth

- GCN and Impact Acquisitions

Only 5% share of market –

estimated at $60 billion (Retail)

28


Electrical/Electronic Group Highlights

EIS is a leading distributor to electrical & electronic manufacturers

2014 Sales at $739 million

- 56 locations in U.S., Mexico, Canada, Puerto Rico and Dominican Republic

Highly developed supply chain

Long-standing partnerships

Sophisticated information technology and e-business capabilities

Knowledgeable employees with product, technical and service solutions

Focus on several growth initiatives, including new products, new fabrication opportunities and new services

5%

Founded 1950

Acquired 1998

29


$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

+5% +5%

2009 -26% 2010 +30% 2011 +24% 2012 +5% 2013 -2% 2014 +30%

Sales

Millions

Sales

YOY

-25%

-34%

-30% -12% +16%

+32%

+31% +40%

+39% +28%

+22% +10%

+9%

-2% -4% -5% -5% +6%

+30% +32%

+23%

+35%


30


Electrical/Electronic Group – Overview

Access to over 100,000

products, including:

- Magnet Wire, Pressure Sensitive Tapes,

Solder & Chemicals, Wire and Cable,

Varnishes & Resins, Hand Tools,

Industrial MRO Materials and Value

Added Fabricated Parts

Customers: More than 20,000

customers in the Electrical/Electronic,

Fabrication & Coating and Specialty

Wire & Cable markets, such as:

- General Electric, Baldor, First Solar,

Emerson, Northrup Grumman, Square D,

Celestica, Hewlett Packard and Flextronics

Major Competitors

Essex/Brownell (a Division of Superior Essex)

Anixter

Houston Wire & Cable

Suppliers

31


Electrical/Electronic Group

Demand Drivers Showing Mfg. Expansion Institute for Supply Management - Purchasing Managers Index

50

32


Electrical / Electronic Group


New Products

New Markets

Acquisitions

- Tekra

- Electro-Wire

- IWI

7% share of market –

estimated at $10.0 billion

33


Drivers and Opportunities

Demand Drivers Opportunities and Initiatives 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

• 9-10% share of total market – est. at $100+ billion (Retail)

• Nearly 460,000 Products & Tens of Thousands

of Customers

• New Distribution, NAPA AutoCare, Major A/C’s, O/S Sales,

Connectivity, Niche Markets – Heavy Duty, Imports, Paints

and Tools & Equipment, Store Resets and Upgrades

Industrial

• Manufacturing industrial production

• Capacity utilization rates

• Capital expenditure budgets/expansion

• Manufacturing employment in U.S.

• 6% share of market – estimated at $70 billion

• Approx. 5.6 million Products & > 150,000 Customers

• Growth via product line expansion, acquisitions and

targeted industries – e.g. Waste Water Treatment, Power

Generation, Municipalities and Transportation & Ports

Office Products

• U.S. gross domestic product (GDP)

• White collar employment numbers

• Office occupancy rates in U.S.

• 5% share of market – est. at $60 billion (Retail)

• More than 55,000 Products & Approx. 4,300 Customers

• Growth via market share initiatives, product line expansion

(including proprietary brands), new products, private brand

expansion, enhanced marketing/electronic content and new

or alternate channels

Electrical/Electronic

• Manufacturing expansion (ISM’s PMI)

• Capacity utilization rates

• 7% share of market – estimated at $10.0 billion

• Over 100,000 Products & > 20,000 Customers

• Growth via new products (including wire & cable and

new fabrication opportunities), new markets & acquisitions

34


Financial Focus

P&L Financial Highlights

Record Sales and Earnings in 2014

2014 2013

2014 v. '13 2013 v. '12

Net Sales (billions) $15.34 +9% $14.08 +8%

Net Income (millions) $711 +9%* $685 +6%

Diluted EPS $4.61 +10%* $4.40 +6%

* Comparative Results 35


7.0

7.2

7.4

7.6

7.8

8.0

8.2

8.4

Operating Margin

Continue to Target

8.0-8.5%

Operating Margin

8.3%

8.1%

36

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


Opportunities for Continued Improvement!

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

7.50

8.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

After Tax Before Tax

Net Profit Margin Trends

6.99%

7.29%

4.64%

4.35%

37


Strong cash position

- Approx. $138 million at December 31, 2014

Prudent working capital management

- Continuous improvement in working capital levels

Solid after-tax return on invested capital (ROIC)

- 16.1% ROIC for 2014

High after-tax return on assets (ROAA)

- 9.0% for 2014

Comfortable with capital structure

- Relatively modest 19% total debt to total capitalization

Financial Focus

Balance Sheet Highlights

38


$0

$200

$400

$600

$800

$1,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

$265

$0

$250

$0 $0 $0 $0 $0 $0

$250

Debt Trend

Financial Focus – Capital Structure

Maturity Schedule

$0

$200

$400

$600

$800

$1,000

$893

$792

$678

$500

$765

$765

39


0.0

5.0

10.0

15.0

20.0

25.0

30.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ROAA W/C Efficiency

W/C Efficiency and ROAA Trends

Source: AAIA / R.L. Polk & Co.

27.5%

14.0%

ROAA

13.8%

14.8%

W/C Eff.

Positioned to improve with effective asset

management and sales and earnings growth 40


10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

Return On Invested Capital

Continue to target

investments with

> 15% ROIC

16.1%

12.7%

41


Financial Focus – Strong Cash Flows

0

100

200

300

400

500

600

700

800

900

1,000

1,100

2008 2009 2010 2011 2012 2013 2014

Free Cash Flow

Capital Expenditures

Dividend Payout$790M

$335M

$108M

$347M

42


Commitment to Shareholders

Priorities for Cash

Dividends

Reinvestment in

Businesses

Share Repurchases

Acquisitions

43



0

0.5

1

1.5

2

2.5

2015

Dividend Record

2015 Annual Dividend $2.46

2.6% Yield and +7% from 2014

59 Consecutive Years of

Increased Dividends

44



Share Repurchases History

9.1 Million Shares Remaining to be Repurchased

(in millions) # Shares Cash Paid

1994 – 2004 24.0 $649.9

2005 – 2009 18.2 782.3

2010 – 2013 7.1 399.4

2014 1.1 95.9

YTD 2015 0.5 45.7

TOTAL 50.9 $1,973.2

Consistent History Of Returning Cash To Shareholders 45


GPC Accomplishments & Objectives

• Sales Growth of 9%

• Operating Margin up 30 Bps

• Earnings per Share up 10%

• Solid Cash Flow Generation

• Strengthened Bal. Sheet

Areas of Improvement

in 2014

• Improve Sales by 6-8%

• Increase Operating Margin

• Grow EPS by 7-10%

• Generate Solid Cash Flows

• Maintain Strong Bal. Sheet

Key Long Term

Annual Objectives

46


Total Return to Shareholders

Periods Ending December 31, 2014

Compound Average

1 YEAR 3 YEAR 5 YEAR 7 YEAR 10 YEAR

GPC 31.4% 23.8% 26.9% 16.6% 12.9%

S&P 500 13.7% 20.4% 15.5% 7.3% 7.7%

DOW JONES 10.0% 16.3% 14.2% 7.2% 7.9%

NASDAQ 14.8% 23.6% 17.2% 9.8% 9.2%

47


0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00

2.25

2.50

2.75

3.00

3.25

3.50

3.75

4.00

4.25

4.50

4.75

5.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

110.00

80 82 84 86 88 90 92 94 96 98 0 2 4 6 8 10 12 14

P/E

Stock Price

EPS

Dividend

Market Capitalization

$16.3 Billion @ December 31, 2014

$12.8B @ 12/31/13 & $10B @ 12/31/12

P/E, Stock Price, EPS & Dividend Trends

48


Thank You! Contact Information:

Carol Yancey - EVP & CFO: 770-612-2044

[email protected]

Sid Jones - VP IR: 770-818-4628

[email protected]

mailto:[email protected]

mailto:[email protected]

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