investor presentationgenuineparts.investorroom.com/download/gpc+investor... · 2015. 11. 16. ·...
TRANSCRIPT
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Investor
Presentation
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Company Overview
Founded in 1928
Leading distributor to four
primary 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 September 30, 2015
$15.4 Billion
#1 or #2 in Every Segment
13%
30%
5%
52%
4
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Automotive Parts Group Highlights
Largest auto parts network in North America
September 2015 TTM 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: 12 DC’s & 27 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 & 500 Store footprint in
Australia and New Zealand
Superior NAPA brand name
Highly acclaimed customer service
Positioned to benefit from positive
industry trends
52%
NAPA Established 1925
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Quarterly Sales History
$-
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
-0-
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
-0-
YTD 2015
-1% 2012 +4%
-2%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
16,000+ 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
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
The Automotive Aftermarket
Market Trends Favoring the Larger DIFM Segment
(U.S. Market Size - Retail Pricing)
$0
$10
$20
$30
$40
$50
$60
$70
2011 2012 2013 2014 2015* 2016* 2017* 2018* 2019* 2020*
DIFM
DIY
Source: Frost & Sullivan 10
* Forecasted
billions
$71B*
$28B*
$64B
$26B
+2%
5-Yr
CAGR
+1%
5-Yr
CAGR
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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 in 2014
+1.5% YOY Source: Auto Care Association, BB&T
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Average Age of Vehicles Increasing
8
8.5
9
9.5
10
10.5
11
11.5
12
Light Trucks Passenger Cars
• Passenger Cars 11.9 Years
• Light Trucks 11.8 Years
2015 Average Age
All Light Vehicles
11.9 Years
Source: Auto Care.Org / Lang Marketing 12
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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 TTM8/15
2.99 3.01 3.03
2.98
2.96 2.97
2.95 2.95 2.97 3.00
3.11
An
nu
al
Mil
es in
Tri
llio
ns
Historical Peak
New
Peak
Miles Driven in U.S. – Strengthening Trends
Miles Driven:
+3.4% YTD 2015
thru August
3.1T
Historical Positive Correlation for Industry
Source: US DOT 14
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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%
-4%
-2%
0%
2%
4%
6%
-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
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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 • 16,000+ 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
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Australasian & Mexico Expansion
GPC Asia Pacific
Market Share Leader in
Australia and New Zealand
- 500 Company owned
stores today
NAPA Mexico
October 2014 Grand Opening
- 19 stores today
17
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
NAPA Retail Store
18
Before
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
NAPA Retail Store – New Store Concept
19
After
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Motion Industries – Industrial Parts Group
Industrial Parts Group Highlights Leading industrial parts MRO
distributor in North America
September 2015 TTM Sales at $4.7 billion
- 15 DC’s and 562 branches and service
centers in the U.S., Canada and Mexico
Proven track record with nearly
70 years 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
30%
Founded 1946
Acquired 1976
20
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Quarterly Sales History
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
-2% -4%
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%
21
YTD 2015
-1%
+10% +3%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
10%
Major Competitors
Applied Industrial Technologies
Kaman (Industrial Technologies Div.)
DXP Enterprises
22
Material Handling
8%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
Utilities
Ports
Rail
Growth Industries
23
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Industrial Parts Group
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
- Mixed Signals thus far in 2015 -
105.8
76.1
Manufacturing Industrial Production Manufacturing Capacity Utilization
Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Industrial Parts Group
Growth Opportunities
Product Category Expansion
- Automation
- Process Pumps
- Safety
Acquisitions
- (CSI, Miller Bearing & Lake Erie)
Growth Industries
Repair, Fabrication and Assembly
E-Commerce
Vending, VMI and Store Room Management
Only 6% share of market –
estimated at $70 billion
25
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Office Products Group Highlights
S.P Richards is the nation’s second largest distributor of business products, office furniture and computer supplies
September 2015 TTM Sales at $1.9 billion
- 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
13%
Founded 1848
Acquired 1975
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All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Quarterly Sales History
$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%
27
+17%
YTD 2015
+11%
+14%
+3%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Office Products Group Overview
Suppliers: Hewlett Packard, Avery Dennison, 3M, Smead, Fellowes and HON
Customers: Thousands of business product resellers
- 80% of sales to Independent Dealers
- 20% of sales to National A/C’s
Major Sales Categories
Office
Supplies
41%
Tech Products
28%
Facility/Breakroom
Solutions
17%
Office
Furniture
14%
Major Competitors
Essendant
(formerly USTR)
28
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Demand Drivers Relatively Stable, but Lagging
0
100
200
300
400
500
600
700
Q3'11 Q1'12 Q3'12 Q1'13 Q3'13 Q1'14 Q3'14 Q1'15 Q3'15
Service-Providing Employment
Source: BLS.gov
-4.5M in 08/09
+1.3M in 10
+2.0M in 11 & 12
+2.1M in 2013
+2.4M in 2014
Total Workers in 2014
Back to 2007 Levels
U.S. GDP and Employment Levels
1.6M New
Jobs thru
Sept. 2015
29
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14 Q2'15
U.S. GDP (% Change)
Source: BEA.gov
-3.1% in 09 +2.2% in 12 +2.5% in 10 +1.6% in 11
Strengthening Trend
in Q2 After Slow
Start in Q1 2015
+3.9%
in Q2’15
+1.5% in 13 +2.4% in 14
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Office Products Group
Growth Opportunities
Market Share Initiatives
Product Line Expansion
New Products
Private Brand Expansion
Enhanced Marketing and Electronic Content
Alternate Channel Growth
- GCN, Impact, JAL & Malt Acquisitions
Only 5% share of market –
estimated at $60 billion (Retail)
30
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Drive for Diversification
31
Office
Supplies
41%
Tech Products
28%
Facility/Breakroom
Solutions
17%
Office
Furniture
14%
Office
Supplies
52% Tech Products
28%
Facility/Breakroom
Solutions
4%
Office
Furniture
16%
Major Sales Categories
2000 2014
Initiatives to Diversify Product Offering have Reduced Sales
of Traditional Office Supplies as a Percent of Total Sales
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Electrical Markets Group Highlights
EIS is a leading distributor of electrical, industrial and specialty products
September 2015 TTM Sales at $750 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
32
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
$-
$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%
Quarterly Sales History
33
+1%
YTD 2015
+2%
+4% +2%
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Electrical Markets 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
34
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Electrical Markets Group
Demand Drivers Showing Mfg. Expansion Institute for Supply Management - Purchasing Managers Index
50
35
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Electrical Markets Group
Growth Opportunities
New Products
New Markets
Acquisitions
- Electro-Wire
- IWI
- Connect-Air
7% share of market –
estimated at $10.0 billion
36
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
• 8-9% share of market – est. at $100+ billion (Retail)
• Approx. 475,000 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 Markets
• Manufacturing expansion (ISM’s PMI)
• Capacity utilization rates
• 7% share of market – estimated at $10 billion
• Over 100,000 Products & > 20,000 Customers
• Growth via new products (including wire & cable and
new fabrication opportunities), new markets & acquisitions
37
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Financial Focus
Recent Full Year 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 38
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
3rd Qtr and YTD 2015 Financial Results
Moderating Sales and Earnings Trends in 2015
3rd Quarter Nine Months
2015 % Change 2015 % Change
Net Sales (billions) $3.92 -2% $11.60 +1%
Net Income (millions) $188 -1% $544 0%
Diluted EPS $1.24 0% $3.56 +1%
39
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
7.0
7.3
7.5
7.8
8.0
8.3
8.5
Operating Margin
Continue to Target
8.0-8.5%
Operating Margin
8.5% 8.1%
40
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9-Mos
2015
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Strong cash position
- Approx. $200 million at September 30, 2015
Prudent working capital management
- Continuous improvement in working capital levels
Solid after-tax return on invested capital (ROIC)
- 16.0% ROIC for 12-Mos ending September 30, 2015
High after-tax return on assets (ROAA)
- 8.5% for at September 30, 2015
Comfortable with capital structure
- 16.5% total debt to total capitalization at September 30, 2015
Financial Focus
Balance Sheet Highlights
41
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
$0
$100
$200
$300
$400
$500
2015 2016 2017 2018 2019 2020 2021 2022 2023
$125
$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
$625
42
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
ROAA W/C Efficiency
W/C Efficiency and ROAA Trends
Source: AAIA / R.L. Polk & Co.
26.1%
13.8%
ROAA 14.4%
13.6%
W/C Eff.
Positioned to further improve with effective asset
management and sales and earnings growth 43
Steady Return on Assets and
improving Working Capital Efficiency
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Improvement in Working Capital
44
DIO - 127
DIO - 100
DPO - 39
DPO - 90
DSO - 45
DSO - 46
20
40
60
80
100
120
140
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
DSO DIO DPO
YTD
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
…..Compressed CCC
45
CCC - 133
CCC - 56 55
65
75
85
95
105
115
125
135
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
CCC
YTD
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
16.0%
13.5%
46
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Financial Focus – Strong Cash Flows
0
100
200
300
400
500
600
700
800
900
1,000
1,100
2010 2011 2012 2013 2014 2015 Est
Free Cash Flow
Capital Expenditures
Dividend Payout
$950M
$450M+
$110M
$370M
47
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Commitment to Shareholders
Priorities for Cash
Dividends
Reinvestment in
Businesses
Share Repurchases
Acquisitions
48
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Commitment to Shareholders
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
49
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Commitment to Shareholders
Share Repurchases History
7.1 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 thru 9-Mos 2015 2.5 225.1
TOTAL 52.9 $2,152.6
Consistent History Of Returning Cash To Shareholders 50
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
GPC Accomplishments & Objectives
• Sales Growth of 1%
(+4% ex Fx)
• Operating Margin up 10 Bps
• Earnings per Share up 1%
(+4% ex Fx)
• Strong Cash Flow Generation
• Strengthened Bal. Sheet
Status Report thru
9-Mos in 2015
• 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
51
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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%
52
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
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
53
All Content is Company Confidential and Exclusive Property of Genuine Parts Company.
Thank You! Contact Information:
Carol Yancey - EVP & CFO: 770-612-2044
Sid Jones - VP IR: 770-818-4628