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The Pep Boys – Manny, Moe & JackAutomotive Solutions Provider of Choice

July 2012

2

This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements contained herein other than statements of historical fact are “forward-looking statements” for purposes of these provisions. In some cases, forward-looking statements can be identified by the use of terminology such as “may”, “will”, “expects”, “plans”, “anticipates”, “estimates”, “potential” or “continue”, or the negative thereof or other comparable terminology. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that our assumptions made in connection with the forward-looking statements are reasonable, we cannot assure investors that our assumptions and expectations will prove to have been correct. Actual results could differ materially from our forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Safe Harbor Statement

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The Pep Boys – Manny, Moe & Jack

Founders of the Automotive Aftermarket

• Trusted since 1921

• Philadelphia – based

740 Locations (as of 6/30/12)

• 562 Supercenters (19-20k sf)

– 10 New Prototypes (13-14k sf)

• 171 Service & Tire Centers (5-6k sf)

• 7 Retail Stores

35 States and Puerto Rico

$2.1 Billion Revenues (1)

• 51% Service– 57% Maintenance & Repair

– 43% Tires & Related Services

• 38% Retail– 39% Appearance, Performance & Complementary

– 61% Light Maintenance & Parts

• 11% Commercial(1) Trailing 4 Quarters through Q1-2012

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Pep Boys Vision: Automotive Solutions Provider of Ch oice for the Value Oriented Customer

Pep Boys Strategy: Earn the TRUST of our Customers every day through:� Preferred employer in the automotive aftermarket� TRUST behaviors

Lead with our Service business and grow through Ser vice & Tire Centers� Does Everything. For Less.� Market share leader in a fragmented market

Establish a differentiated Retail experience by lev eraging our Automotive Superstore � Broadest range of maintenance, performance and appe arance products

and accessories� Highest level of replacement parts coverage� Leading installer of automotive after-market produc ts

Leverage our Automotive Superstore to provide the m ost complete offering for our Commercial customers � One call solution for parts, tires, equipment, and accessories

The Pep BoysVision and Strategy

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The Pep BoysEarn The Trust Of Our Customers Every Day

Preferred Employer in the automotive aftermarket

� Selecting the right people

� Training, development, and certification

� Equipped for success

� Performance-based compensation

TRUST behaviors

� Be friendly

� Do it right

� Show compassion

� Keep promises

TRUST measurements

� Customer retention

� On-line reputation

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The Pep BoysLead With Service

Provides parts for Service“We install what we sell”

Market leader in appearance and performance products and accessories

Speed Shops for automotive enthusiasts

Competitive pricingSuperhubs serve neighboring stores with

same-day parts availability

Delivers to Service & Tire Centers

“One Call” for parts, tires,equipment and accessories

Leverages parts inventory to support competitive assortment and pricing

RETAIL COMMERCIAL

SERVICE

Full service: tires, maintenance, undercar and und erhood

Value leader as a result of our parts pricing advan tage:“We buy direct from the manufacturers and

pass the savings onto our customers”

Service & Tire Centers:Convenient for customers

Local “my mechanic”

Support Service

Automotive Superstore

Support Parts

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Service($179 billion) (1)

Industry Characteristics

Source: 2013 Digital Aftermarket Factbook.(1) Includes tire sales.

� Service is 4x larger than DIY

� Service is expected to grow slightly faster than DIY

� Service is highly fragmented (268,000 Service establishments in the US)

� DIY had been declining prior to 2007, but has benefited from the economic slowdown

� Consumers continue to shift to Service

• Cars more complex

• Lifestyle changes

• Aging of baby boomers

� Service consolidation continues

• Evolving technologies

• Increasingly capital-intensive

• High barrier to entry for new players

Do It Yourself($44 billion)

2011 Sales = $223 billion

DIY20%

DIFM & Tires80%

Sears

Pep BoysFirestoneJiffy LubeTBCMidasGoodyearAAMCOMonroMeineke

Carquest

AutozoneAdvanceO'Reilly

Pep Boys

NAPA

Independents, Regionals

64%

Dealerships30%

Other59%

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Full service provider

More than 7000 service bays

National scale

Parts sourced directly from manufacturers

Savings passed onto customers

Tires Alignments

Oil changes Brakes

Ride control HVAC

Starting and charging Tune-ups

Engine performance Fuel systems

Maintenance products and services

Engine and transmission R&R

Computer module flashing


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The Pep BoysGrow Through Service & Tire Centers

• Customer friendly: local “my mechanic”

• Higher financial return: leverage existing assets

• Existing facility: 4 to 8 bays

• Full service: tires, maintenance, undercar, underhood

• Stock high velocity assortment

• Retail that targets our service customer, when space permits

• Convenient to where customers live and work

– 3 to 5 mile trade area

• Higher median household income

• 5 to 15 minutes from supporting Supercenter

• Build-to-suits starting in 2013

Model

Locations

Markets

• Individual sites in biggest Pep Boys markets

• Small chains in other Pep Boys markets

• Consider chains in new markets opportunistically

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The Pep Boys Grow Through Service & Tire Centers

New Stores� 25 in 2009� 28 in 2010� 119 in 2011� 32 in 2012

Projected Financials� $1 million sales� $150K EBITDA � <$400K investment� IRR of 15% or greater

Targeted Maturity Curve� EBITDA neutral run rate at end of year one� EBIT neutral run rate at end of year two� Mature at end of year three� Additional upside after that

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Pep Boys Supercenters

Florida Tire Locations

NewService & Tire Centers

The Pep BoysGrowth Leads to Market Density – Orlando / Daytona Marke t

Big 10 Locations

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The Pep BoysAtlanta Market

Big 10 Locations

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The Pep BoysLos Angeles Market

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The Pep BoysPhiladelphia Market

New Supercenters

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The Pep BoysChicago Market

New Supercenters

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The Pep BoysService & Tire Center Sales Continue to Build

Sales at both organic and acquisition Service & Tire Centers continue to mature

Organic Service & Tire Centers

1

11

18

4143

52

60

65

0

5000

10000

15000

20000

25000

30000

1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101

106

111

116

121

126

131

136

141

146

151

156

161

166

Weeks of Operation (beginning with first full month)

Ave

rage

Wee

kly

Sal

es

0

10

20

30

40

50

60

70

# Lo

catio

ns in

Ope

ratio

n

Acquisition Service & Tire Centers

$14.0

$18.1

$12.2

$25.4

$15.6 *

$19.6 *

$12.2 *

$27.7 $27.8 *

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Florida Tire Davco Big 10 My Mechanic

Ave

rage

Wee

kly

Sal

es P

er S

tore

Year 1 Year 2 Year 3

* Represents year-to-date sales since acquisition anniversary date

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Automotive Superstore means more than just a parts store

Starts with parts (knowledgeable people, parts availability, competitive pricing)

We are the market leader in appearance and performance products and accessories

Wash and wax dominanceInterior accessoriesExterior accessoriesPerformance / speed shopsAutomotive electronicsLight maintenanceFluidsParts, especially late model coverageTools for DIY customers

The Pep Boys Automotive Superstore

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The Pep Boys New Supercenter PrototypeCustomer Perception Benefits� Showcases service center� Dominant parts presentation� Easy to navigate� Customer lounge

Customer Service Benefits� One customer advisor team� Greeted at the entrance� Performance based pay

Financial Benefits� 13-14,000 square feet versus

19-20,000 square feet� Consolidated payroll model� Lower operating cost

New Store Plans� Hubs for Service & Tire Center

growth� Relocation opportunities� Will open 8 in FY 2012

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The Pep BoysNew Supercenter Prototype

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The Pep BoysSpeed Shop� Remodel existing Supercenters to

accommodate Speed Shops

• 20 open in California, New York, Florida, Pennsylvania, Maryland, New Jersey, Nevada, Arizona, and Texas

• Targeting a total of 100.

� Attracts Automotive Enthusiasts

• Muscle car; import tuner; sport truck, Jeep, diesel

� Highlights our competitive point of differentiation

• Staffed with dedicated enthusiasts

• Sales and installation of our products

� Creates destination store in key markets

• Expands 3-5 mile trade area

• Draws car shows and other enthusiast activities

• Serves surrounding stores

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The Pep Boys Distribution Network

Indianapolis Distribution

Center

RegionalDistribution

Centers

SuperhubLocations

Supercenter & Retail

Locations

Service & Tire Centers

# Locations

1

4• San Bernardino, CA• McDonough, GA• Mesquite, TX• Chester, NY

• Plainfield, IN

44 Servicing 410 stores

569

171

# SKUs

~100,000

~45,000

~40,000

~23,000

~3,000

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The Pep Boys SuperhubsRemodel existing Supercenters to accommodate Superh ub inventory� Currently supporting 410 stores with 44 Superhubs / WDs� Adding 4 more Superhubs in 2012 to support an addit ional 20 stores

Superhub objectives:� Increase sales in host and satellite stores through improved inventory availability� Increase margins by reducing the need for outside p urchases� Allow for consolidation of inventory from satellite stores

Typical Parts Lifecycle

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

1974

1972

1970

Ahead of the Curve

Mainstream Behind the Curve

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The Pep Boyse-SERVE … Appointment Scheduling

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The Pep Boyse-SERVE … TreadSmart

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The Pep Boyse-SERVE… Buy Online Pick Up in Store (rolled out in Q2 2 012)

Excellent web experience- Discover

- Research - Purchase

My Home

Pick up in Store

Installed on My Car

Online Service

Selection

Parts and Accessories

Tires and Installation

IndianapolisDC

Shopping Experience

Payment and Shipping Fulfillment

Store

• Ship to Home planned Q4 2012

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The Pep Boys19 Million Rewards Members

How it works …� Members get FREE Services

• Tire rotation and air pressure check• Flat repair• Brake evaluation• Check engine light evaluation• Discounted towing to a Pep Boys location

� Members earn a point for every dollar they spend in service and retail

� Rewards are equivalent to 5% of their total purchases ($200 spend = $10 reward)

� Reward vouchers are sent to members once they are earned

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The Pep BoysImproving Financial Performance

Notes : •Results adjusted to exclude certain one time non-re curring charges and gains.•After-Tax ROIC = EBIT * (1-0.39 tax rate) / (Averag e Debt + Average Equity – Average Cash)•Earnings Per Share is Diluted EPS•See next slide for unadjusted financial metrics and list of one-time non-recurring charges and gains.

Total Revenue (Billions)

$2.21 $2.24 $2.14$1.93 $1.91 $1.99 $2.06

FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

Operating Margin(target: mid-single-digit)

0.9%0.4%

3.1%3.8%

-0.6% -0.8%

3.3%

FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

Earnings Per Share

($0.13)

($0.46)($0.66)

$0.38$0.60

$0.49

($0.69)

FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

After-Tax ROIC(target: high-single-digit)

1.8%

5.0%6.8% 5.9%

-1.1%

0.7%-0.4%

FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

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The Pep BoysUnadjusted Financial Metrics

List of one-time non-recurring charges and gains :2005: Includes a $4.2 million pre-tax asset impairment charge.2006: Includes a pre-tax gain of $8.968 million from d isposition of assets.2007: Includes an aggregate pre-tax charge of $10.963 million related to the closure of 31 stores ($7.199 million cost of sales and $3.764 million discontinued operations). Includes a pre-tax inven tory impairment charge of $32.803 million (cost of sales) for the discontinuance of certain product offerings. Also includes a pre-tax gain of $15.151 million from disposition of assets.2008: Includes an aggregate pre-tax charge of $5.353 mi llion ($3.427 million cost of sales and $1.926 mill ion discontinued operations) for asset impairment. Includes a pre-tax gain from debt reti rement of $3.46 million partially offset by a $1.17 2 million pre-tax charge for deferred financing costs. Also includes a pre-tax gain of $9.716 milli on from disposition of assets.2009: Includes a pre-tax charge of $3.11 million ($2.88 4 million cost of sales and $0.226 million disconti nued operations) for asset impairment. Includes a pre-tax gain from debt retirement of $6. 248 million. In addition, includes a net pre-tax g ain of $1.213 million from disposition of assets.2010: Includes a pretax benefit of $5.9 million due to the reduction in reserve for excess inventory which reduced merchandise cost of sales and an aggregate pretax charge of $1.0 million for asset i mpairment ($0.8 million was charged to merchandise cost of sales and $0.2 million was charged to service cost of sales). Also includes a pre-tax ga in of $2.467 million from disposition of assets.2011: Includes an aggregate pre-tax charge of $1.6 mill ion for asset impairment ($0.6 million was charged to merchandise cost of sales and $1.0 million was charged to service cost of sales). Also includes a tax benefit of $3.6 million due to rele ase of valuation allowances on state net operating loss carry forwards and credits.

Total Revenue (Billions)

$2.21 $2.24 $2.14$1.93 $1.91 $1.99 $2.06

FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

Operating Margin

1.3%

-0.8%

3.0%

4.2%

3.2%

-0.5%-0.6%

FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

Earnings Per Share

($0.05)

($0.79)($0.58)

$0.44$0.69

$0.54

($0.69)

FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

After-Tax ROIC

2.3%4.8%

7.4%

-0.4%

-1.1% -0.8%

5.8%

FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

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The Pep Boys Macro -environment

� Primary external drivers for Pep Boys are:

• Miles driven for tires, maintenance and repairs

• GDP for discretionary purchases

� Other factors include:• Gas prices• Age of vehicles• Car sales (new and used)• Shift to smaller / lighter

vehicles• New technologies

� Our plans assume that the macro-environment continues to stabilize

Notes :US Real GDP in billions of chained 2005 dollars (tr ailing 4 quarters expressed at annual rates).Vehicle Miles Traveled in billions trailing 4 quart ers (all roads and streets).Q1 data estimated based on run rate thru January 20 12Source: US Bureau of Economic Analysis

US Department of Transportation (Federal Highway Ad ministration)

Source: Bureau of Transportation Statistics, U.S. Department of Transportation

2,700

2,800

2,900

3,000

3,100

200

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)

10,000

11,000

12,000

13,000

14,000

GD

P

VMT (Billions) GDP (Billions)

Year # Units (millions)2011 12.72010 11.62009 10.62008 13.52007 16.5

2001 - 2006 17.2

New Car Sales

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The Pep BoysImproving Financial Performance� Low single digit comparable store sales growth

� 4% - 5% service bay growth per annum

� Gross margins are still an opportunity• Recover lost tire margins• Gross margin leaks• Cost of goods sold• Pricing and mix

� Sales growth leverages expense base• Productivity and cost reductions• Safety and claims reductions• Outlier management• “One Team” store structure

� Execution • Customer experience• Selling excellence

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The Pep BoysSolid Financial Position� Financial flexibility

• $155m cash (as of July 2012)• $295m debt at favorable rates

• ½ due 2013; ½ due 2014 • Currently evaluating refinancing alternatives

� Dry powder• 232 owned stores

• Appraised value $670m – 1Q 2011• Net book value $449m – 4Q 2011• Net tax value $331m – 4Q 2011

• 162 ground leased stores• 346 leased stores• 4 owned distribution centers• 1 leased distribution center• 2 owned office buildings

� Sales growth leverages asset base• Investing in new parts while improving inventory pr oductivity• Expanding vendor financing programs to improve paya bles leverage• Maintenance capital expenditures of $40 million per year

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The Pep Boys Investment Story� We have turned

around the company

� We still have opportunity for improvement in our base business

� We have a solid foundation for growth for years to come

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