8-K - GPC - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

April 6, 2020

Date of Report (date of earliest event reported)

GENUINE PARTS COMPANY

(Exact name of registrant as specified in its charter)

GA		001-05690		58-0254510
(State or other jurisdiction of incorporation or organization)		(Commission File Number)		(I.R.S. Employer Identification No.)
2999 WILDWOOD PARKWAY,
ATLANTA,	GA		30339
(Address of principal executive offices)				(Zip Code)

(678) 934-5000

Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CF.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value per share	GPC	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 6, 2020, Genuine Parts Company (the “Company”) released a business update regarding COVID-19 (the “Update”). The Update is incorporated herein by reference and addresses certain preliminary estimates of balance sheet data as of March 31, 2020 and related liquidity information. In light of the macroeconomic impact of COVID-19, the Company has withdrawn its previously provided 2020 guidance information initially issued as part of the Company’s fourth quarter earnings release. The Company is closely monitoring the impact of COVID-19 on all aspects of its business, but it does not expect to achieve its previous full-year guidance. The Company will reevaluate its guidance metrics as it prepares for the first quarter 2020 earnings release on May 6, 2020, based on the best information available at that time.

Item 7.01 Regulation FD Disclosure

On April 6, 2020, the Company released a press release and the Update. A copy of the press release and the Update are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference. The information furnished under Item 2.02 and Item 7.01 in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise incorporated by reference into any filing pursuant to the Securities Act of 1933, as amended, or the Exchange Act except as otherwise expressly stated in such filing.

Item 8.01 Other Events

On April 6, 2020, the Board of Directors of the Company declared a regular quarterly cash dividend of seventy-nine cents ($0.79) per share on the Company’s common stock. The dividend is payable on July 1, 2020 to shareholders of record on June 5, 2020.

The Company plans to release first quarter earnings on May 6, 2020. Management will also conduct a conference call on this date at 11:00 a.m. Eastern time. The public may access the call on the Company's website, www.genpt.com, by clicking "Investors," or by dialing 877-407-0789. The conference ID is 13701533. If you are unable to participate during the call, a replay of the call will be available on the Company's website or toll-free at 844-512-2921, ID 13701533, two hours after the completion of the conference call until 12:00 a.m. Eastern time on May 20, 2020.

A copy of the press release is furnished with this Current Report on Form 8-K as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description
99.1	Press Release dated April 6, 2020
99.2	Presentation
104	The cover page from this current report on Form 8-K, formatted in inline XBRL

Forward Looking Statements

Some statements in this report, as well as in the Update incorporated by reference herein, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate, for example, to the Company’s ability to amend its credit facilities to allow for covenant flexibility and the Company’s expectations relating to COVID-19’s negative impact on its financial results and company-wide sales. The Company cautions that its forward-looking statements involve risks and uncertainties, and while the Company believes that its expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on 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 its business operations caused by the global health crisis associated with the COVID-19 outbreak, including the effects on the financial health of its business partners and customers, on supply chains and its suppliers, on vehicle miles driven as well as other metrics that affect its business, and on the financial and capital markets; 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 each of its three business segments; slowing demand for the Company's products; changes in national and international legislation or government regulations or policies, including changes to import tariffs and the unpredictability of such changes, 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; labor shortages and 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; the ability to maintain favorable supplier arrangements and relationships; disruptions in its suppliers' operations, including the impact of the COVID-19 on its suppliers as well as its supply chain, including potential problems with inventory availability and the potential result of higher cost of product and international freight due to the high demand of products and low supply for an unpredictable period of time; failure or weakness in its disclosure controls and procedures and internal controls over financial reporting; 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 Annual Report on Form 10-K for 2019 (all of which risks may be amplified by the COVID-19 outbreak) and from time to time in the Company's subsequent filings with the SEC.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures the Company makes on related subjects in its subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Genuine Parts Company
April 6, 2020	By:	/s/ Carol B. Yancey
		Name: Carol B. Yancey
		Title: Executive Vice President and CFO

Document

GENUINE PARTS COMPANY
	NEWS RELEASE

FOR IMMEDIATE RELEASE

GENUINE PARTS COMPANY

ANNOUNCES COVID-19 UPDATE AND

FIRST QUARTER 2020 EARNINGS RELEASE DATE

Declares Regular Quarterly Dividend -
Withdraws Previous 2020 Guidance -

ATLANTA, GA, April 6, 2020 – Genuine Parts Company (NYSE: GPC) announced today a business update in response to the impact from novel coronavirus (COVID-19). The Company has also prepared a COVID-19 deck to supplement this announcement which can be found at http://genuineparts.investorroom.com. This presentation is based on our current assessment of information available to us as of April 6, 2020.

The Company also plans to release first quarter 2020 earnings on May 6, 2020. In addition, its Board of Directors declared a regular quarterly cash dividend of seventy-nine cents ($0.79) per share on the Company’s common stock. The dividend is payable July 1, 2020 to shareholders of record June 5, 2020.

In response to the rapidly evolving COVID-19 outbreak and pandemic, the Company has implemented preparedness plans to keep our employees and customers healthy and safe, as well as to ensure continued operations and business continuity across our global network. Each of our automotive, industrial and business products segments have been classified as “essential” businesses and our operations remain substantially open to serve our customers through this pandemic, with the exception of France and New Zealand due to preemptive government mandates. Additionally, our supply chain partners have been very supportive and continue to do their part to ensure that service levels to our customers remain strong.

Paul Donahue, Chairman and Chief Executive Officer of Genuine Parts Company, commented, “We continue to take aggressive and necessary measures to keep our workplaces safe while also searching for prudent and innovative ways to maintain our high standard of operation. Protecting our people and keeping our operations up and running remains critical. GPC plays an essential role in keeping major facets of our economy and infrastructure operating, and we will continue to challenge ourselves to meet the needs of our customers.”

Mr. Donahue concluded, “We believe the steps we are taking to stabilize our business in these unprecedented times will position the Company for strong sales and earnings growth as we exit this global pandemic.”

Genuine Parts Company maintains a strong balance sheet and is conserving cash by taking steps to reduce cash outflows associated with capital expenditures and M&A, and suspending share repurchase activity in the current environment. In addition, we have expanded our original $100 million cost savings plan announced last October to include a variety of additional measures to reduce labor and other costs, as appropriate. Finally, while our current liquidity remains strong, with approximately $1.0 billion in cash and unused credit as of March 31, 2020, we continue to work with our banking and other partners for alternative forms of financing and to remain in continued compliance with our debt covenants. Through these actions and our on-going working capital initiatives, the Company has the liquidity to operate through these uncertain times as well as continue to pay the dividend.

Since our last guidance update on February 19, 2020, the growing uncertainties around COVID-19 have rapidly evolved and significantly affected the market conditions across our global operations. While we are uncertain as to its full impact, we expect COVID-19 to negatively impact our financial results, and do not expect to achieve our previously stated full-year 2020 guidance. As a result, the Company is withdrawing all of its previous guidance metrics. We will be reevaluating our guidance metrics as we prepare for our first quarter 2020 earnings release on May 6, 2020.

Earnings Release and Conference Call

About Genuine Parts Company

Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the U.K., Germany, Poland, the Netherlands and Belgium. The Company also distributes industrial replacement parts in the U.S., Canada, Mexico and Australasia through its Industrial Parts Group. S.P. Richards Company, the Business Products Group, distributes a variety of business products in the U.S. Genuine Parts Company had 2019 revenues of $19.4 billion. Further information is available at www.genpt.com.

Contacts

Carol B. Yancey, Executive Vice President and CFO - (678) 934-5044

Sidney G. Jones, Senior Vice President - Investor Relations - (678) 934-5628

Forward Looking Statements

Some statements in this press release, as well as in other materials we file with the Securities and Exchange Commission (SEC) or otherwise release to the public and in materials that we 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,” “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. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to our actions positioning us for strong sales and earnings growth, our ongoing efforts to maintain compliance

with our debt covenants, liquidity position 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 the financial and capital markets; 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 each of its three business segments; slowing demand for the Company's products; changes in national and international legislation or government regulations or policies, including changes to import tariffs and the unpredictability of such changes, 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; labor shortages and 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; 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, including potential problems with inventory availability and the potential result of higher cost of product and international freight due to the high demand of products and low supply for an unpredictable period of time; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting; 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 Annual Report on Form 10-K for 2019 (all of which risks may be amplified by the COVID-19 outbreak) and from time to time in the Company's subsequent filings with the SEC.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its 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.

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Genuine Parts COVID-19 Business Update April 6, 2020

Safe Harbor Statement FORWARD-LOOKING STATEMENTS: Some of the comments made 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,” “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. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to our actions positioning us for strong sales and earnings growth, our ongoing efforts to maintain compliance with our debt covenants, liquidity position to continue to operate during these highly uncertain times and plans for future cost savings. These statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, 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 the financial and capital markets; the Company's ability to successfully integrate acquired businesses; the ability to successfully divest businesses; the ability to successfully implement its business initiatives; slowing demand for products; changes in national and international legislation or government regulations or policies, including changes to import tariffs and the unpredictability of such changes, 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 and the unpredictability of the impact following such exit; changes in tax policies; volatile exchange rates; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; labor shortages and the Company's ability to successfully attract and retain employees; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; 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, potential problems with inventory availability and the potential result of higher cost of product and international freight; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting; 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. NON-GAAP MEASURES: This presentation contains the Company’s ratio of total net debt to adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), which is a financial measure that is not derived in accordance with United States generally accepted accounting principles ("GAAP"). The Company considers this non- GAAP measure useful to investors because it provides greater transparency into management’s view and assessment of the Company’s debt level. This is a debt leverage measure that is 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 this measure in the same manner. The Company does not, nor does it suggest investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the appendix of this presentation. GPC INVESTOR PRESENTATION | 2

Introduction The COVID-19 outbreak and pandemic continues to evolve rapidly. Our deepest and sincere thoughts go out to all affected by COVID-19, as well as the dedicated healthcare workers and first responders who are on the front lines for all our citizens. While the eventual outcome remains uncertain, we would like to share updates on 1) the state of our business; 2) COVID-19 preparedness; and 3) our balance sheet and liquidity. These updates are based on what we know as of today, April 6, 2020. On February 19, 2020, we provided full-year 2020 guidance metrics, including sales and earnings per share, as part of our fourth quarter earnings release and conference call. Since then, the spread of COVID-19 and the many efforts to reduce its transmission have affected the market conditions across our global operations. While we are uncertain as to its full impact, we expect COVID-19 to negatively impact our financial results, and we do not expect to achieve our previous full-year guidance. We will be reevaluating our guidance metrics as we prepare for our first quarter 2020 earnings release on May 6, 2020. The purpose of this business update is to inform you of notable developments during these unprecedented times and how Genuine Parts Company is proactively navigating the fast- changing landscape. We intend to provide another update in our first quarter 2020 earnings release, or as appropriate. This presentation is based on our current assessment of information available to us as of April 6, 2020, and we do not undertake any obligations to provide further updates. Please refer to the Safe Harbor statement within this presentation. GPC INVESTOR PRESENTATION | 3

COVID-19 State of Business: Dynamics and Observations COMPANY-WIDE COMMENTARY • Overall, our business segments experienced slowing sales trends over the last two weeks of March due to growing pandemic concerns and the expansion of efforts to combat COVID-19, such as “shelter in place” and other similar mandates • As we enter the second quarter, we expect the sales environment to slow further due to COVID-19 and the decline in global economic activity • While the negative impact on our business operations cannot be reasonably estimated at this time, our teams are preparing for multiple scenarios to ensure we continue to protect our employees while also keeping our operations up and running to serve our customers Automotive Parts (APG): 57% Industrial Parts Group (Motion): 34% Business Products (S.P. Richards): 9% • Deemed “essential” across markets • Deemed “essential” across markets • Deemed “essential” across markets for both traditional office supplies and JanSan products • Substantially all operations open for business • Substantially all operations open for business • France and New Zealand mostly closed due to • Select closures in New Zealand due to • All operations open for business government mandates government mandates • JanSan products sales especially strong • Do-it-for-me (DIFM) outperforming Do-it-yourself (DIY) • Business holding up reasonably well overall sales • Outperforming sectors: • Continued slow sales trends in the traditional office • Strong on-line sales to DIY customers • Food processing supplies categories • Aggregate & Cement • Expect miles driven to decline in near-term, then strongly • Underperforming sectors: • Supply chain to JanSan products is challenged as recent recover as pandemic passes • Oil & Gas, Mining OEM demand has exceed supply • Supply chain is robust, in good standing and supportive • Supply chain is robust, in good standing and supportive • Supply chain to traditional office supplies is solid with of strong service levels to customers of strong service levels to customers strong service levels to our customers Note: Percentages of 2019 Sales. GPC INVESTOR PRESENTATION | 4

COVID-19 Preparedness Update We have created a dedicated COVID-19 Taskforce and added enhanced protocols in response to COVID-19, including recommendations and requirements issued by the Centers for Disease Control and Prevention (“CDC”), World Health Organization (“WHO”), and local, state and national health authorities, to protect our employees, customers, suppliers and communities ENHANCED PROTOCOLS AT ALL COMPANY FACILITIES TO PROTECT THE HEALTH, SAFETY AND WELL-BEING OF EVERYONE  Began steady flow of communications regarding COVID-19 updates,  Provided additional personal protective equipment and cleaning supplies including health and safety protocol and procedures  Initiated actions to screen, limit or prohibit non-essential visitors to the  Implemented business continuity plans across our operations properties  Instituted multiple levels of cleaning protocols in all facilities  Instilled processes to isolate staff who show any symptoms or have been exposed to the virus  Increased frequency of disinfecting high-touch areas and high-traffic common areas  Commenced remote work strategy for administrative teams  Reinforced hand washing and infection control training  Prohibited all domestic and international non-essential travel for all employees  Established safe distancing procedures and processes in all facilities  Engaged with legal counsel for all jurisdictions where Genuine Parts operates to ensure compliance with local mandates GPC INVESTOR PRESENTATION | 5

Durable Balance Sheet and Liquidity to Withstand COVID-19 Uncertainty AS OF 12/31/2019 LIQUIDITY PROFILE AS OF 3/31/2020 DEBT MATURITY SCHEDULE (3) $715 In millions Total Debt Outstanding $3.4B Total Credit Capacity $4.4B Less: Cash $0.3B Less: $400 Net Debt $3.1B Total Debt Outstanding (2) ($3.7B) $360 $358 $336 $250 2019 Adj EBITDA $1.5B Unused Credit Capacity $0.7B $188 $196 $110 Net Debt to Adj EBITDA (1) 2.1x Cash (2) $0.3B (1) A non-GAAP metric. We refer you to the appendix of this Total Available Liquidity $1.0B presentation for a reconciliation to the most comparable GAAP 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ measure and related information. (2) Preliminary estimates (3) Excludes revolver COMMENTARY • Fixed and variable-rate debt maturing 2021-2034 and with weighted average interest rate of 2.18% as of December 31, 2019 • Expected to be in compliance with debt covenants as of March 31, 2020 • Negotiating appropriate covenant amendments due to macro uncertainty • Negotiating alternative forms of liquidity to enhance credit capacity • Near-term capital allocation focused on conserving cash • Capex reduced to $150-$200M for 2020 • Share repurchases suspended temporarily • ~$100M purchased YTD • M&A limited to small, bolt-ons, for balance of 2020 • Board has approved quarterly dividend due July 1, 2020 • $0.79 per share, representing a 4% increase from 2019 GPC INVESTOR PRESENTATION | 6

COVID-19 FAQ What is the impact of COVID-19 on Genuine Parts’ What is the impact of COVID-19 on What is the potential impact of COVID-19 on ongoing operations (i.e., facilities, working from Genuine Parts’ 1st Quarter results and 2020 Genuine Parts’ supply chain? home, individual sites)? outlook? • We are operational across all three segments • We are classified as essential and are open to serve our • We will report our 1st Quarter results on May 6, 2020 • The supply chain across all three of our business segments is customers (other than in France and New Zealand) • Due to the rapidly evolving situation around COVID-19, we robust, other than challenges with JanSan products, which have • We have established specific safety and health policies and cannot reasonably estimate its full impact at this time, but we do experienced high recent demand procedures in response to COVID-19 not expect to achieve our previously provided full-year guidance • Our supply chain partners have been very supportive and they • We remain in constant communication with our employees • We are reevaluating our guidance metrics as we prepare for our continue to do their part to ensure our service levels to our regarding changing conditions and protocol 1st Quarter earnings release and intend to provide an update customers remain strong based on the best information available at that time • In these unprecedented times, we may find it appropriate to temporarily suspend the provision of full year guidance Where specifically might there be impact to How is Genuine Parts managing its How is Genuine Parts addressing its liquidity to Genuine Parts’ business? cost base? ensure adequate cash requirements? • Initiatives being taken to combat COVID-19 have slowed the • We are expanding on our 2019 cost savings plan to reduce our • ~$1.0 billion in cash and borrowing capacity at March 31 global economy and will negatively impact our sales volume expenses by $100 million in 2020 (announced Oct 2019) • Actively seeking multiple options for alternative forms of throughout this pandemic • Additional steps include a variety of initiatives, including: financing to enhance credit capacity • While we are adjusting our costs, accordingly, we expect the • Delayed merit increases • Working with bank and other financing partners to amend impact on sales to also affect our earnings • Pay reductions for select personnel including senior current debt covenants, as appropriate • Governments globally are assisting our customers (i.e. small management • Conserving cash via: businesses) to manage through the current environment • Work hour reductions for hourly personnel • Additional cost savings initiatives • Voluntary and Involuntary unpaid leave programs • Our teams, along with several of our financial partners, are • Reduction in Capex and M&A • Reduction of temp and contract labor working closely with our customers (store owners, repair shops • Suspension of share repurchases • Elimination of travel, entertainment and meetings & office products dealers) to help these businesses • Working capital management GPC INVESTOR PRESENTATION | 7

Summary At GPC, we continue to take The safety and well-being of our employees and customers is our top priority, and we aggressive and necessary 01 continue to follow the guidelines established by the leading health organizations. measures to keep our workplaces safe while also searching for prudent and innovative ways to maintain our high standard of Our auto parts, industrial and business products segments are deemed “essential” and operation. 02 remain substantially open to serve our customers across our network. Our supply chain is robust and supportive of strong service levels to our customers. We also continue to adhere to the pronouncements from our national and local leaders and medical We continue to conserve cash and expand our cost savings initiatives to perform experts as to how we can best 03 through this pandemic without interruption of service to our customers. battle this pandemic. Protecting our people and keeping our operations up and running remains critical. We play We have ample liquidity and continue to work with our banking and other partners for 04 an essential role in keeping major alternative forms of financing and continued covenant compliance. facets of our economy and infrastructure operating. We will continue to challenge ourselves to meet the needs of our customers. The steps we are taking to stabilize our business in these unprecedented times will 05 position the Company for strong sales and earnings growth as we exit this global crisis. Paul Donahue | Chairman & CEO GPC INVESTOR PRESENTATION | 8

Appendix GPC INVESTOR PRESENTATION | 9

2019 (In thousands, except net debt to adjusted EBITDA ratio) GAAP debt $3,426,099 Net Debt to Less: Cash 276,992 Net debt $3,149,107 Adjusted EBITDA GAAP net income $621,085 Reconciliation Add: Interest expense, net 91,315 Provision for income tax 209,215 Table Depreciation and amortization 270,288 EBITDA 1,191,903 Add: Restructuring and other adjustments (1) 273,251 Adjusted EBITDA $1,465,154 Net debt to Adjusted EBITDA 2.1 (1) See non-GAAP measures in the Company’s 2019 Form 10-K for more details GPC INVESTOR PRESENTATION | 10