2020 Annual Report - O'Reilly Auto Parts

1 2020 Annual Report FINANCIAL HIGHLIGHTS In thousands, except earnings per share and ratio data and store countCOMPARISON OF TEN-YEAR CUMULATIVE RETURNThis graph shows the cumulative total shareholder return assuming the investment of $100 on December 31, 2010, and the reinvestment of dividends thereafter, if any, in the common stock of O Reilly Automotive, Inc., the Standard and Poor s S&P 500 Retail Index and the Standard and Poor s S&P 500 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020$100$148$132$319$419$213$461$398$570 $725$749O Reilly Automotive.

2 500 Retail IndexS&P 500 IndexOur commitment to our customers and our team members:We are enthusiastic, hardworking professionals who are dedicated to teamwork, safety/wellness, and excellent customer service. We will practice expense control while setting an example of respect, honesty, and a win-win attitude in everything we ENDED DECEMBER 31,20202019201820172016 Store Count 5,6165,4605,2195,0194,829 Percentage Increase in Comparable Store $ 11,604,493 $ 10,149,985 $ 9, 536, 428 $ 8,977,726 $ 8,593,096 Operating Income 2, 419, 336 1,920,726 1,815,184 1,725,400 1,69 9, 20 6 Net Income1,752,302 1,391,0 42 1,324, 4 87 1,133, 8 0 4 1, 0 3 7.

3 6 9 1 Accounts Payable to Inventory114. 5% Capital (762,630)(635,765)(350,918)(249,69 4)(142,674)Total Assets 11, 59 6, 6 42 1 0 , 7 17,1 6 0 7, 9 8 0 , 7 8 9 7, 5 7 1, 8 8 5 7,204,189 Total Debt 4 ,12 3, 217 3,890,527 3 , 4 17,12 2 2,978,390 1, 8 8 7, 0 19 Shareholders Equity 140,258 3 9 7, 3 4 0 353,667 653,046 1, 6 2 7,13 6 Earnings Per Share (assuming dilution) $ $ $ 16 .10 $ $ Weighted-Average Common Shares Outstanding (assuming dilution) 74,462 7 7, 7 8 8 82,280 89, 502 96,720 DILUTED EARNINGS per SHARE 20162017201820192020$ $ $ $ $ on INVESTED CAPITAL (in millions) 20162017201820192020$8,593$8,978$9,536$1 0,150$11,604O REILLY AUTOMOTIVE 2020 Annual Report 1TO OUR FELLOW SHAREHOLDERS.

4 "O Reilly Strong" is a key foundation for our success and cannot be easily was one of the most challenging years in the 63-year history of our Company, and words simply cannot express the gratitude we have for the selfless dedication and hard work demonstrated by our Team of over 77,000 Team Members in our stores, distribution centers and corporate offices. At the beginning of the year, we could never have anticipated the obstacles we would face during 2020 as a result of the COVID-19 pandemic, natural disasters and social unrest, and the disruptions and changes these would impose on every facet of our daily lives.

5 In trying times, a company s true merit is put on full display, and we were, and continue to be, extremely proud to see our Team demonstrate the O Reilly Culture to its fullest, showing that being O Reilly Strong is a key foundation for our success and cannot be easily duplicated. Our commitment to protecting the health and safety of our Team Members and customers has remained paramount, and it will continue to be our top priority as we meet the critical needs of our customers as an essential service provider.

6 Thank you, Team O Reilly, for your commitment to our Culture, our Customers, and to each other; you continue to be our greatest competitive advantage and the fuel for our future KIRBYE xecutive Vice President of Supply ChainTHOM AS MCFALLE xecutive Vice President and Chief Financial OfficerGREG JOHNSONC hief Executive Officer and Co-PresidentJ E F F S H AWChief Operating Officer and Co-PresidentBRAD BECKHAME xecutive Vice President of Store Operations and SalesAndres Quiroz-Marin, Installer Service Specialist, O Reilly 5796-Aurora.

7 REILLY AUTOMOTIVE 2020 Annual Report 2O REILLY AUTOMOTIVE 2020 Annual Report 3maintaining their vehicles, particularly as economic uncertainty persists. These drivers provide both a short-term and long-term positive outlook for our top of the impressive operating results, our Team was able to make investments in the continued growth of our business. During 2020, we successfully opened 156 net, new stores, including our first greenfield new store opening in Mexico. For 2021, we have established a growth target of 165 to 175 net, new store openings, which includes an additional five new stores in Mexico.

8 During 2020, we further expanded our In the face of unprecedented challenges, Team O Reilly delivered record-breaking operating performance, highlighted by full-year comparable store sales growth of and an incredible 26% increase in operating profit. The significance of these outstanding results cannot be understated, but it is also extremely important to note that these results were achieved by executing our time-tested business model of excellent customer service by our professional Parts people, supported by our robust distribution network supplying industry-leading Parts availability.

9 Our mission is to be the dominant supplier of auto Parts in all of our markets, and while the strong results in 2020 were supported by significant macroeconomic tailwinds and government stimulus, our Team s performance allowed us to gain significant market share. We remain optimistic regarding the health and strength of the automotive aftermarket industry and the ability of our Team to produce strong top-line results. Miles driven is the fundamental long-term driver of demand in our industry, and we expect to benefit as miles driven returns to normal levels and more consumers return to work.

10 With these miles being driven by a growing and aging vehicle fleet, we remain confident consumers will continue to see value in repairing and industry-leading distribution network with the opening of our Lebanon, Tennessee, distribution center in 2020, and we made significant progress on our new Horn Lake, Mississippi, distribution center, which is expected to open during the second quarter of 2021. In addition, we continue to invest heavily in enhancing our omnichannel capabilities to meet our customers on their terms, whether they visit a store, call or we seek the highest return for our shareholders capital, reinvesting in our business remains the top priority.