Gabelli Automotive Aftermarket Symposium. October 31 November 1, 2016

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1 Gabelli Automotive Aftermarket Symposium October 31 November 1,

2 Forward Looking Statements You should be aware that except for historical information, the matters discussed herein are forward looking statements within the meaning of the Private Securities Litigation Reform Act of Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ materially from those discussed herein. You are urged to review our filings with the SEC and our press releases from time to time for details of these risks and uncertainties. 2

3 SMP Snapshot 97 Years in Business Founded 1919 $972M 2015 Sales 4,600 Employees Worldwide LAWRENCE I. SILLS Executive Chairman Board of Directors ERIC P. SILLS Director, CEO and President JAMES J. BURKE EVP Finance and Chief Financial Officer DALE BURKS EVP and Chief Commercial Officer 2015 Sales Breakdown Sales by Market 92% 8% Aftermarket OE / OES Sales by Product Line 30% 70% Engine Mgmt Temp Control Major Product Categories Engine Management Ignition Products Emissions Products Fuel Delivery Vehicle Electronics Temperature Control A/C Compressors Other A/C System Components Engine Cooling Products Blower & Radiator Fan Motors 3

4 SMP Snapshot Major Brands Global Footprint 3 Million sq. ft. 13 Manufacturing Plants 5 Distribution Centers 4 Offices 4

5 Favorable Industry Trends Vehicle Population is increasing Miles driven is increasing Millions U.S. Light Vehicle Parc 72.5% 73.8% 74.9% 74.9% 73.0% 71.5% 2.0% 1.0% 0.0% 0.9% 0.8% 0.5% Annual Miles Driven, (Percent Change from Previous Year) 0.3% 0.3% 0.6% 0.5% 1.7% Total Light Vehicles Light Vehicles 6+ Years -1.0% -2.0% -1.9% -0.6% -0.7% Vehicle population continues to age Average Age of Cars and Light Trucks Millions DIFM revenue continues to grow Auto Care Industry Segmentation $250,000 DIFM DIY $200,000 $150,000 $100,000 $50,000 $ *2017*2018*2019* 5

6 Value Proposition Best-in-Class Full-Line, Full-Service Supplier Of Premium Engine Management and Temperature Control Products Our premium brands meet all the commercial customers needs Supply Chain Excellence Field Sales Support Marketing Support Full-Line Coverage Customer Training Premium Brands Premium Quality 6

7 Strategic Objectives Value Proposition Execution Best-in-Class Full-Line, Full-Service Supplier Continuous Improvement Increased Manufacturing Low Cost Manufacturing Low Cost Purchasing Growth Programs New Products Strategic Acquisitions Return to Shareholders Dividend Increase Treasury Stock Buyback Program 7

8 Return to Shareholders Dividend Increase Annual Dividend $0.28 $0.36 $0.44 $0.52 $0.60 $ Forecast 2016 Note: $0.68 based on quarterly dividend of $0.17 announced Jan 2016 Treasury Stock Buyback Program Year Spend Shares Avg. Price 2011 $4.1M 322,250 $ $5.0M 380,777 $ $6.9M 209,973 $ $10.0M 284,284 $ $19.6M 551,791 $

9 September 2016 QTR and YTD Results 9

10 5 Year Performance Measures Consolidated Net Sales ($M) Gross Margin $1,000 $948.9 $983.7 $980.4 $ % $800 UP 8.0% 30.0% 29.5% 29.5% $828.7 $756.6 $765.0 $762.3 $ % $ % 27.4% $ % 26.0% $ % 28.9% 30.9% $ % /2016 YTD Sept YTD Full Year EBITDA (w/o Special Items) ($M) $120.0 $111.5 $106.8 UP 30.3% $100.0 $96.4 $87.4 $102.4 $80.0 $86.0 $89.1 $78.6 $60.0 $70.8 $40.0 $20.0 Diluted EPS (w/o Special Items) $2.75 $2.52 $2.32 $2.25 $2.13 $1.75 $1.83 $2.04 $1.91 $1.78 $1.25 $1.55 $0.75 UP 32.0% $2.35 $ Sept YTD Full Year $ Sept YTD Full Year 10

11 Q Income Statement Non - GAAP ($ in millions) Q Q Amount % of Sales Amount % of Sales Net Sales $ % $ % Gross Profit % % SG&A Expenses % % Operating Profit % % Other Income/(Loss) 0.3 (0.6) Interest Expense Income Taxes Earnings from Continuing Ops. $ 21.3 $ 18.4 Diluted Earnings Per Share: Continuing Operations $ 0.92 $ 0.80 Diluted Shares (000's) 23,098 23,134 11

12 September 2016 YTD Income Statement Non - GAAP ($ in millions) September 2016 YTD September 2015 YTD Amount % of Sales Amount % of Sales Net Sales $ % $ % Gross Profit % % SG&A Expenses % % Operating Profit % % Other Income Interest Expense Income Taxes Earnings from Continuing Ops. $ 54.1 $ 41.3 Diluted Earnings Per Share: Continuing Operations $ 2.35 $ 1.78 Diluted Shares (000's) 23,045 23,220 12

13 Condensed Balance Sheet Actual September 2016, 2015 ($ in millions) Dollars Ratios Cash and Equivalents $ 30.5 $ 13.3 Accounts Receivable/DSO Inventory/Turns Other Assets Total Assets $ $ Current Liabilities $ $ Total Debt/Debt to Cap Ratio % 5.9% Other Liabilities Total Liabilities $ $ Equity/Debt to Equity Ratio Total Liabilities and Equity $ $

14 Condensed Statement of Cash Flows (IN MILLIONS) September YTD Full Year NET INCOME $52.1 $40.8 $46.0 DEPRECIATION & AMORTIZATION ACCOUNTS RECEIVABLE (34.9) (24.8) 1.4 INVENTORY (3.6) 5.7 (10.6) ACCOUNTS PAYABLE OTHER OPERATING ACTIVITIES NET CASH PROVIDED BY OPERATING ACTIVITIES CAPITAL EXPENDITURES (15.2) (14.6) (18.0) ACQUISITIONS (67.3) OTHER INVESTING ACTIVITIES NET CASH USED IN INVESTING ACTIVITIES (82.3) (14.6) (18.0) NET BORROWINGS (PAYMENTS) 22.7 (32.3) (9.3) DIVIDENDS (11.6) (10.3) (13.7) REPURCHASE OF COMMON STOCK (0.4) (15.5) (19.6) OTHER FINANCING ACTIVITIES NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 11.4 (57.9) (41.2) EFFECTS OF EXCHANGE RATES ON CASH (0.4) (0.7) (0.9) NET CHANGE IN CASH $ 11.7 $ (0.4) $ 5.1 FREE CASH FLOW $ 56.2 $ 47.9 $

15 Appendix 15

16 Reconciliation of GAAP and Non-GAAP Measures ($ in thousands, except per share amounts) TWELVE MONTHS DECEMBER 31, (Unaudited) EARNINGS FROM CONTINUING OPERATIONS GAAP EARNINGS FROM CONTINUING OPERATIONS $ 48,120 $ 52,899 $ 53,043 $ 42,969 $ 64,327 CUSTOMER BANKRUPTCY CHARGE 3, DEFERRED FINANCING FEE WRITE-OFF LITIGATION CHARGE - 10, RESTRUCTURING AND INTEGRATION EXPENSES (134) 1,197 3,357 1,437 1,344 REVERSAL OF LT TAX LIABILITY - (350) CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (571) (361) (374) (774) - POSTRETIREMENT CURTAILMENT GAIN (3,647) GAIN FROM SALE OF JOINT VENTURE (2,475) NONRECURRING INCOME TAX ADJUSTMENT'S INCLUDING VALUATION ALLOWANCE REVERSAL (24,755) GAIN FROM SALE OF BUILDINGS (1,048) (1,048) (1,048) (1,287) (1,048) INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (1,243) (4,320) (924) (60) 2,330 NON-GAAP EARNINGS FROM CONTINUING OPERATIONS $ 49,411 $ 58,667 $ 54,054 $ 42,285 $ 36,076 DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 2.08 $ 2.28 $ 2.28 $ 1.86 $ 2.78 CUSTOMER BANKRUPTCY CHARGE DEFERRED FINANCING FEE WRITE-OFF LITIGATION CHARGE RESTRUCTURING AND INTEGRATION EXPENSES (0.01) REVERSAL OF LT TAX LIABILITY - (0.02) CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (0.03) (0.02) (0.02) (0.03) - POSTRETIREMENT CURTAILMENT GAIN (0.16) GAIN FROM SALE OF JOINT VENTURE (0.10) NONRECURRING INCOME TAX ADJUSTMENT'S INCLUDING VALUATION ALLOWANCE REVERSAL (1.07) GAIN FROM SALE OF BUILDINGS (0.04) (0.04) (0.04) (0.06) (0.04) INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (0.05) (0.19) (0.04) NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 2.13 $ 2.52 $ 2.32 $ 1.83 $

17 Reconciliation of GAAP and Non-GAAP Measures (cont d) ($ in thousands) TWELVE MONTHS DECEMBER 31, (Unaudited) EBITDA WITHOUT SPECIAL ITEMS GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $ 74,103 $ 81,753 $ 84,962 $ 67,947 $ 64,448 DEPRECIATION & AMORTIZATION 17,637 17,295 17,595 16,466 14,145 INTEREST EXPENSE 1,537 1,616 1,902 2,788 3,821 EBITDA 93, , ,459 87,201 82,414 CUSTOMER BANKRUPTCY CHARGE 3, DEFERRED FINANCING FEE WRITE-OFF LITIGATION CHARGE - 10, RESTRUCTURING AND INTEGRATION EXPENSES (134) 1,197 3,357 1,437 1,344 POSTRETIREMENT CURTAILMENT GAIN (3,647) GAIN FROM SALE OF JOINT VENTURE (2,475) GAIN FROM SALE OF BUILDINGS (1,048) (1,048) (1,048) (1,287) (1,048) SPECIAL ITEMS 3,105 10,799 2, (5,826) EBITDA WITHOUT SPECIAL ITEMS $ 96,382 $ 111,463 $ 106,768 $ 87,351 $ 76,588 TOTAL DEBT $ 47,505 $ 56,816 $ 21,481 $ 40,648 $ 73,299 DEBT TO EBITDA RATIO (TTM) 0.5:1 0.5:1 0.2:1 0.5:1 1:1 MANAGEMENT BELIEVES THAT EBITDA WITHOUT SPECIAL ITEMS, WHICH IS A NON-GAAP MEASUREMENT, IS MEANINGFUL TO INVESTORS BECAUSE IT PROVIDES A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE. 17

18 Reconciliation of GAAP and Non-GAAP Measures (cont d) ($ in thousands, except per share amounts) NINE MONTHS SEPTEMBER 30, (Unaudited) EARNINGS FROM CONTINUING OPERATIONS GAAP EARNINGS FROM CONTINUING OPERATIONS $ 53,573 $ 42,341 $ 41,382 $ 43,652 $ 36,659 LITIGATION CHARGE , RESTRUCTURING AND INTEGRATION EXPENSES 2,127 (49) 1,069 2, REVERSAL OF LT TAX LIABILITY - - (350) - - CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (235) (571) (361) (374) (774) GAIN FROM SALE OF BUILDINGS (786) (786) (786) (786) (1,025) INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (536) 333 (4,373) (698) 98 NON-GAAP EARNINGS FROM CONTINUING OPERATIONS $ 54,143 $ 41,268 $ 47,231 $ 44,325 $ 35,737 DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 2.32 $ 1.82 $ 1.79 $ 1.88 $ 1.59 LITIGATION CHARGE RESTRUCTURING AND INTEGRATION EXPENSES REVERSAL OF LT TAX LIABILITY - - (0.02) - - CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (0.01) (0.03) (0.02) (0.02) (0.03) GAIN FROM SALE OF BUILDINGS (0.03) (0.03) (0.03) (0.03) (0.04) INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (0.02) 0.02 (0.19) (0.03) - NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 2.35 $ 1.78 $ 2.04 $ 1.91 $

19 Reconciliation of GAAP and Non-GAAP Measures (cont d) ($ in thousands) EBITDA WITHOUT SPECIAL ITEMS NINE MONTHS SEPTEMBER 30, (Unaudited) GAAP EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES $ 85,037 $ 65,110 $ 64,100 $ 69,479 $ 56,732 DEPRECIATION & AMORTIZATION 14,829 13,042 12,889 13,203 12,093 INTEREST EXPENSE 1,206 1,238 1,205 1,621 2,257 EBITDA 101,072 79,390 78,194 84,303 71,082 LITIGATION CHARGE , RESTRUCTURING AND INTEGRATION EXPENSES 2,127 (49) 1,069 2, GAIN FROM SALE OF BUILDINGS (786) (786) (786) (786) (1,025) SPECIAL ITEMS 1,341 (835) 10,933 1,745 (246) EBITDA WITHOUT SPECIAL ITEMS $ 102,413 $ 78,555 $ 89,127 $ 86,048 $ 70,836 TOTAL DEBT $ 70,178 $ 24,583 $ 59,271 $ 32,292 $ 60,482 DEBT TO EBITDA RATIO (TTM) 0.6:1 0.2:1 0.5:1 0.3:1 0.7:1 MANAGEMENT BELIEVES THAT EBITDA WITHOUT SPECIAL ITEMS, WHICH IS A NON-GAAP MEASUREMENT, IS MEANINGFUL TO INVESTORS BECAUSE IT PROVIDES A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE. 19

20 Reconciliation of GAAP and Non-GAAP Measures (cont d) ($ in thousands, except per share amounts) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, EARNINGS FROM CONTINUING OPERATIONS (Unaudited) (Unaudited) GAAP EARNINGS FROM CONTINUING OPERATIONS $ 21,055 $ 19,194 $ 53,573 $ 42,341 RESTRUCTURING AND INTEGRATION EXPENSES 1,115 (80) 2,127 (49) CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (235) (571) (235) (571) GAIN FROM SALE OF BUILDINGS (262) (262) (786) (786) INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (340) 137 (536) 333 NON-GAAP EARNINGS FROM CONTINUING OPERATIONS $ 21,333 $ 18,418 $ 54,143 $ 41,268 DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 0.91 $ 0.83 $ 2.32 $ 1.82 RESTRUCTURING AND INTEGRATION EXPENSES CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD (0.01) (0.03) (0.01) (0.03) GAIN FROM SALE OF BUILDINGS (0.01) (0.01) (0.03) (0.03) INCOME TAX EFFECT RELATED TO RECONCILING ITEMS (0.02) 0.01 (0.02) 0.02 NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS $ 0.92 $ 0.80 $ 2.35 $ 1.78 MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS AND DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, EACH OF WHICH ARE NON-GAAP MEASUREMENTS AND ARE ADJUSTED FOR SPECIAL ITEMS, ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY'S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE. 20