Académique Documents
Professionnel Documents
Culture Documents
November
2016 AUTO
PARTS
1
Forward Looking Statements
Certain statements contained in this release are forward-looking statements, as that term is used in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements address future events or developments, and typically use words
such as believe, anticipate, expect, intend, plan, forecast, outlook or estimate. These forward looking statements include, but
are not limited to, key assumptions for 2016 financial performance including adjusted operating income; statements regarding
the benefits and other effects of the acquisition of General Parts and the combined companys plans, objectives and
expectations; statements regarding expected growth and future performance of Advance Auto Parts, Inc. (AAP), including store
growth, capital expenditures, comparable store sales, gross profit rate, SG&A, adjusted operating income, free cash flow,
income tax rate, General Parts integration costs and store consolidation costs, synergies, expenses to achieve synergies and
adjusted operating income rate targets; expectations regarding leadership changes and their impact on the companys
strategies, opportunities and results; statements regarding enhancements to shareholder value; statements regarding
strategic plans or initiatives, growth or profitability; and all other statements that are not statements of historical facts. These
forward-looking statements are subject to significant risks, uncertainties and assumptions, and actual future events or results
may differ materially from such forward-looking statements. Such differences may result from, among other things, the risk
that the benefits of the General Parts acquisition, including synergies, may not be fully realized or may take longer to realize
than expected; the possibility that the General Parts acquisition may not advance AAPs business strategy; the risk that AAP
may experience difficulty integrating General Parts employees, business systems and technology; the potential diversion of
AAPs managements attention from AAPs other businesses resulting from the General Parts acquisition; the impact of the
General Parts acquisition on third-party relationships, including customers, wholesalers, independently owned and jobber
stores and suppliers; AAPs ability to attract, develop and retain executives and other employees; changes in regulatory, social
and political conditions, as well as general economic conditions; competitive pressures; demand for AAPs and General Parts'
products; the market for auto parts; the economy in general; inflation; consumer debt levels; the weather; business
interruptions; information technology security; availability of suitable real estate; dependence on foreign suppliers; and other
factors disclosed in AAPs 10-K for the fiscal year ended January 2, 2016 and other filings made by AAP with the Securities
and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. AAP
intends these forward-looking statements to speak only as of the time of this communication and does not undertake to
update or revise them as more information becomes available.
2
Agenda
1. Welcome
2. 3Q16 Recap
3. Strategic Plan Highlights
4. Question & Answer Session
5. Close
3
3rd Quarter Recap
4
Strategic Business Plan
5
Advance Auto Parts Management Presenters
6
Compelling Investment Opportunity
7
Strong Industry Fundamentals Driving Growth
2 - 3% 3 - 4% 1 - 2%
Industry Professional DIY market
growth market growth growth
Sources: 2017 Digital Auto Care Factbook; Autocare Aftermarket Factbook; Company estimates
8
AAP Well Positioned To Gain Share
LARGE
COMPANY OWNED
PROFESSIONAL BUSINESS
EXTENSIVE
NORTH AMERICAN
FOOTPRINT
LEADING
IMPORT PARTS
DISTRIBUTORS
9
Addressing Evolving Industry Trends
10
Delighting The Customer
Conducted extensive
industry research
Leveraged analytics to
understand what drives
choice...
and performance
vs. customer
expectations
11
Insights Into Action
Professional DIY
12
Executing a Focused Agenda
3. DIY 4. Productivity
13
1. Supply Chain 2. Professional
3. DIY 4. Productivity
14
Fully Leveraging Existing Supply Chain Assets
Whatever you guys are doing, its working for me. I get parts
quicker, cars spend less time on the lifts, so I get more jobs done.
16
Streamlining Our Supply Chain
Fully integrating
Advance/CARQUEST supply chain
and systems
17
1. Supply Chain 2. Professional
3. DIY 4. Productivity
18
Bob Cushing
Executive Vice President - Professional
19
Attractive Brand Portfolio
20
Attractive Brand Portfolio
21
Strong Domestic BaseContinued Import Strength
12,000,000
New Vehicle Sales in the United States
11,000,000
Import Domestic
10,000,000
+2.4MM units
9,000,000
+5.5MM units
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
22
The Best Professional Training Platforms in the Industry
23
Elevating The Online Experience
Frost & Sullivans research found automotive technicians rank WORLDPAC as the
best program distributor with a comprehensive line of quality products, easy-to-use
online program (speedDIAL), outstanding salespeople, competitive pricing,
dependable delivery and consistent product availability.
24
Caring for Our Customer FirstAlways
Technology Training
Building Customer TRUST,
CONFIDENCE and LOYALTY
25
Leverage Best in Class Assets Across Professional
26
Focusing On Our Customers
27
Significant Share Opportunity in Professional
$85 Billion
Professional
Industry
Sources: 2017 Digital Auto Care Factbook; Autocare Aftermarket Factbook; Company estimates
28
1. Supply Chain 2. Professional
3. DIY 4. Productivity
29
Caring for Our Customer FirstAlways
30
Growing Customer Base
PRIORITY SEGMENTS
31
Driving Frequency
32
Improving Customer Experience
33
Making Progress
34
Significant Share Opportunity in DIY
$50 Billion
DIY
Industry
Sources: 2017 Digital Auto Care Factbook; Autocare Aftermarket Factbook; Company estimates
35
1. Supply Chain 2. Professional
3. DIY 4. Productivity
36
Accelerated Productivity Will Fund Our Journey
37
Productivity Focus Areas
1 2 3
Zero Based Supply Material
Budgeting Chain Costs
38
1. Supply Chain 2. Professional
3. DIY 4. Productivity
39
Talent, Culture and Capabilities
GROWING TALENT
Attract & retain the best talent
40
Over The Next Five Years
41
Tom Okray
Chief Financial Officer
42
Driving Growth and Expanding Operating Margins
2017 2021
Comparable
Sales
Growth
Operating Margin
43
Panel Q&A
44
Tom Greco
President and Chief Executive Officer
45
Compelling Investment Opportunity
46
Thank You!
47