Vous êtes sur la page 1sur 47

ADVANCE

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

Tom Greco Bob Cushing Tom Okray


President and CEO Executive VP, Professional Chief Financial Officer

6
Compelling Investment Opportunity

1 Attractive industry dynamics

2 Compelling market position

3 Tremendous opportunity to deliver growth and margin expansion

4 Executing clear, focused agenda to drive change

5 Aggressive team aligned around plan

DRIVING SUBSTANTIAL SHAREHOLDER VALUE

7
Strong Industry Fundamentals Driving Growth

$135 BILLION INDUSTRY

FIVE YEAR COMPOUND ANNUAL GROWTH

2 - 3% 3 - 4% 1 - 2%
Industry Professional DIY market
growth market growth growth

Vehicles Average age Vehicles Average miles driven


in operation of vehicles in operation per year
11+ years old

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

BEST COVERAGE IN THE INDUSTRY

9
Addressing Evolving Industry Trends

eCommerce Technology Electrification

Urbanization & Autonomous


Ride Sharing Vehicles

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

1. Supply Chain 2. Professional

3. DIY 4. Productivity

13
1. Supply Chain 2. Professional

3. DIY 4. Productivity

14
Fully Leveraging Existing Supply Chain Assets

Optimize Assets to Test & Learn


Build New Capabilities
Delight Customers Initiatives

The Right Part at the Right Time


15
Test and Learn Initiatives Delivering Positive Results

Increase In Overall Reduction


Decrease In
In Market In Inventory and
Order To Delivery Time
Parts Availability Days On Hand

We can close big jobs faster and easier now.

Now I can get all the hard-to-get parts.

Im confident Ill get the parts the same day.

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

Integration initiatives fully integrated


into Strategic Business Plan

Operating as one company focused


on delighting the customer

More partscloser to more


customers.

17
1. Supply Chain 2. Professional

3. DIY 4. Productivity

18
Bob Cushing
Executive Vice President - Professional

19
Attractive Brand Portfolio

The best lineup of well-known national brands.

20
Attractive Brand Portfolio

.. and a deep selection of private label

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

Source: IHS Markit

22
The Best Professional Training Platforms in the Industry

DIFFERENTIATED EXPERTISE AND CAPABILITIES TO SERVICE CUSTOMERS

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

Product Assortment Catalog

Delivery Service Sales Team

Technology Training
Building Customer TRUST,
CONFIDENCE and LOYALTY

25
Leverage Best in Class Assets Across Professional

Import Strength Training Platforms Online Experience

26
Focusing On Our Customers

We chose Advance Professional based on their overall enterprise


value. The combination of product coverage, local availability,
technician training, technology as well as competitive pricing made
them the right choice both now and into the future. They have a
proven track record of great customer service and consistent
execution across a large geographic area which makes them the
right strategic partner for our business."

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

Parts Availability Training

Engagement Speed Perks

In-Store Experience On-Line Experience


Building Customer TRUST,
CONFIDENCE and LOYALTY

30
Growing Customer Base

PRIORITY SEGMENTS

31
Driving Frequency

32
Improving Customer Experience

33
Making Progress

..Your manager and his staff were so nice and


so helpful, in what was for me, a very stressful
situation. His actions have made me an Advance
Auto Parts customer for life.

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

DISTRIBUTE SHIP RUN

DELIVER SELL SUPPORT

37
Productivity Focus Areas

1 2 3
Zero Based Supply Material
Budgeting Chain Costs

Eliminate Waste Simplification Procurement

Standardization Optimization Value Engineering

$500 MILLION IN GROSS PRODUCTIVITY OVER 5 YEARS

38
1. Supply Chain 2. Professional

3. DIY 4. Productivity

39
Talent, Culture and Capabilities

GROWING TALENT
Attract & retain the best talent

EVOLVING OUR CULTURE


Build a culture of customer focus and
accountability aligned around results

BUILDING NEW CAPABILITIES


Develop the right set of capabilities across
the organization

40
Over The Next Five Years

Sequential $500 Million Substantial World Class


Top Line In Gross Margin Talent, Culture &
Improvement Productivity Expansion Capabilities

41
Tom Okray
Chief Financial Officer

42
Driving Growth and Expanding Operating Margins

2017 2021

Comparable
Sales
Growth

Operating Margin

Strategic plan goals:


Mid-single digit comparable sales growth
At least 500 basis points of operating margin improvement

43
Panel Q&A

44
Tom Greco
President and Chief Executive Officer

45
Compelling Investment Opportunity

1 Attractive industry dynamics

2 Compelling market position

3 Tremendous opportunity to deliver growth and margin expansion

4 Executing clear, focused agenda to drive change

5 Aggressive team aligned around plan

DRIVING SUBSTANTIAL SHAREHOLDER VALUE

46
Thank You!

47

Vous aimerez peut-être aussi