2. Forward-looking Statements
Statements in this presentation concerning the Companyâs goals, strategies, and expectations for business and financial results may be
"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current indicators
and expectations. Whenever you read a statement that is not simply a statement of historical fact (such as when we describe what we
"believe," "expect," or "anticipate" will occur, and other similar statements), you must remember that our expectations may not be correct,
even though we believe they are reasonable. We do not guarantee that the transactions and events described will happen as described (or
that they will happen at all). You should review this presentation with the understanding that actual future results may be materially different
from what we expect. Many of the factors that will determine these results are beyond our ability to control or predict. You are cautioned
not to put undue reliance on any forward-looking statement. We do not intend, and undertake no obligation, to update these forward-looking
statements. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those
expressed or implied in the applicable statements. Such risks include:
(1) Changes in the markets for the Companyâs business segments
(2) Changes in trends and demands in the markets in which the Company competes
(3) Unanticipated downturn in business relationships with customers or their purchases
(4) Competitive pressures on sales and pricing
(5) Raw material availability, increases in raw material costs, or other production costs
(6) Harsh weather conditions
(7) Future economic and financial conditions in the United States and around the world
(8) Inability of the Company to meet future capital requirements
(9) Claims, litigation and regulatory actions against the Company
(10) Changes in laws and regulations affecting the Company
(11) The Companyâs ability to execute the components of its Strategic Business Evolution process
Myers Industries, Inc. encourages investors to learn more about these risk factors. A detailed explanation of these factors is available in the Companyâs publicly filed quarterly
and annual reports, which can be found online at www.myersindustries.com and at the SEC.gov web site.
2
3. Why Myers?
3
⢠Realigned and refocused business segments
⢠Reduced reportable segments from 4 to 2 (Material Handling and Distribution)
⢠Enhanced platform to accelerate organic and acquisitive growth
⢠Refined new product development process
⢠Cross-selling opportunities with Scepter across both segments
⢠Attractive bolt-on acquisition platforms in Material Handling and Distribution
⢠Global opportunity for emerging market expansion and penetration
⢠Strong market positions and brand recognition across both segments
⢠Plans for further penetration of attractive market segments
⢠Re-introducing legacy products at lower costs
⢠Strong reputation for highly engineered product capabilities
⢠Expanded marketing capabilities
⢠Disciplined capital deployment & strong cash flow generator
⢠Strong and flexible balance sheet, plus history of stable cash flows, provides opportunity for
future value creation
⢠Dedicated to enhancing shareholder value
⢠Increasing profits through culture of cost discipline
⢠Reducing debt
⢠Returning cash through dividends and share repurchases
⢠Current dividend commitment of $0.54/share annually (yield > 3.8% as of early November)
4. 4
Business Transformation
Over the course of 18 months, Myers has transformed the businesses through a
series of planned strategic transactions.
Streamlined
Operating
Segments
Reduced reportable operating segments from four:
⢠Material Handling
⢠Distribution
⢠Engineered Products
⢠Lawn and Garden
Into two distinct businesses:
⢠Material Handling
⢠Distribution
Divested
Non-Core
Businesses
Bolt-on
Acquisitions
Acquired Scepter in July 2014 for $157M
⢠Annual Sales of approximately $100M
increases Material Handling revenue
by 25%
⢠Higher margins and better growth
potential than combined divested
businesses
Divested WEK Industries, Inc. in June 2014 for $20M
⢠Used proceeds to help fund the acquisition of Scepter
Divested Lawn and Garden segment in February 2015 for $110M
⢠Net proceeds from the transaction used to pay down debt
5. 5
Two core businesses & reporting
segments:
Material Handling
⢠Highly engineered, polymer-based returnable
packaging and storage and safety products
⢠Specialty molding
Distribution
⢠Largest U.S. distributor of tools, supplies and
equipment for the tire, wheel and undervehicle
service industry
⢠Manufacturer of tire repair and retread products
Company at a Glance (NYSE: MYE)
Material Handling | Reusable Containers Distribution | Tire Maintenance Supplies
TTM Net Sales
from Continuing
Ops
TTM Adj. Income
Before Taxes from
Continuing Ops
Material Handling | Distribution
76%
24%
70%
30%
7. ⢠Focus on markets that have strong, sustainable growth and profit potential
through new product introductions, expanding marketing and cross-selling
⢠Material Handling:
⢠Food processing
⢠Agriculture
⢠Industrial
⢠Marine
⢠Distribution:
⢠Auto dealer tire market
⢠Fleet maintenance
⢠E-Commerce
⢠Invest in organic growth opportunities, process improvements and market
development for enhanced value creation
⢠Drive earnings growth faster than sales growth
⢠Maintain our commitment to a balanced capital allocation policy supported
by our strong and flexible balance sheet
7
Strategic Goals
8. Long-Term Financial Goals and Progress
8
⢠Operating performance in 2014 impacted by poor weather conditions early in the year, freight and logistical
issues, weak commodity prices and the troubled Brazilian economic climate
⢠ROIC in 2014 impacted by acquisition of Scepter which took place mid-year
⢠Despite challenging year operationally, generated strong free cash flow in 2014
2014 Results:
Metric Goal 2014(5)
2013(5)
2012(5)
Sales Growth(1)
> 2.0x GDP 7% 7% 7%
Gross Profit Margin > 30% 26% 29% 30%
Free Cash Flow(2)
⼠100% of Net Income 308% 205% 90%
ROIC(3)
> 10% 5% 17% 15%
Innovation / NPD(4)
>10% of Sales 8% 7% 3%
Operations Excellence Savings 3% of COGS (gross) 2% 2% 2%
(1) Using real GDP growth rates, 2.0x GDP growth = 4.8%, 4.4% and 4.6% for 2014, 2013 and 2012 respectively.
(2) Free cash flow calculated as cash flow provided by continuing operations - capital expenditures for continuing operations.
(3) ROIC = Net Operating Profit After Tax/(Debt + Equity).
(4) NPD = New Product Development calculation based on products/services introduced within the last three years.
(5) All years reflect discontinued operations presentation. 2012 and 2013 do not include Scepter acquisition completed in 2014.
Key Accomplishment Metrics
9. 9
Long-term Growth Drivers
Net Sales
Select
investments and
acquisitions
Richer product
mix
New markets
and geographies
Profitability
Optimize
capacity
Drive greater
operating
efficiency
Enhance product
mix
Free Cash Flow
Sales growth and
profitability
improvement
Capital discipline
10. $29
$55
$77
$20
$57
$25
$42
$24
$54
$28
$25 - $30
$0
$20
$40
$60
$80
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Estimate
Solid Cash Flow Generation
10
Notes:
1) Free cash flow calculated as cash flow from continuing operations less capital expenditures for continuing operations.
2) Years 2012 â 2015 have been adjusted to reflect discontinued operations presentation.
Generating Free Cash Flow, Investing for the Future and
Returning Cash to Shareholders
$(Millions)
Free Cash Flow
As Reported Continuing Operations
11. Strong & Flexible Balance Sheet
11
Notes:
1) Available liquidity at September 30, 2015 was $186M.
2) Data has not been adjusted to reflect discontinued operations.
Maintaining strong balance sheet for investments and
returning capital to shareholders
Net Debt
$(Millions)
Long-term
Target
1.5-2x
$234
$195
$163 $161
$100
$79
$67
$89
$38
$230
$210
$0
$50
$100
$150
$200
$250
$300
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3 2015
12. Balanced Approach to Capital Allocation
12
Investing for the future and returning cash to shareholders
M&A
Growth
Return
Capital to
Shareholders
Organic
Growth
Core
Markets
New
Adjacencies
Bolt-on
Focus
Share
Repurchases
Dividends Debt
Reduction
Reinvest in
Business
New Product
& Market
Development
Process
Improvements
13. $0.07
$0.08
$0.09
$0.13 $0.135
$0.03
$0.05
$0.07
$0.09
$0.11
$0.13
2011 2012 2013 2014 Q1 2015
Returning Cash to Shareholders
⢠Increasing Dividends
⢠Increased Q1 2015 quarterly dividend by 4% to $0.135 per share
⢠Buying Back Shares
⢠Invested $33M to buy back 2.8M shares from 2011 to 2013
⢠Invested $55M to buy back 2.7M shares in 2014
⢠Invested $12M to buy back .8M shares YTD September 2015
⢠3.2 million shares remaining in Board authorization (as of 9-30-15)
13
Quarterly Dividends Paid $Millions Invested in Share Repurchases
$0.0
$21.0
$4.2
$8.1
$55.0
$12.0
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
2010 2011 2012 2013 2014 2015
14. Why Myers?
14
⢠Realigned and refocused business segments
⢠Reduced reportable segments from 4 to 2 (Material Handling and Distribution)
⢠Enhanced platform to accelerate organic and acquisitive growth
⢠Refined new product development process
⢠Cross-selling opportunities with Scepter across both segments
⢠Attractive bolt-on acquisition platforms in Material Handling and Distribution
⢠Global opportunity for emerging market expansion and penetration
⢠Strong market positions and brand recognition across both segments
⢠Plans for further penetration of attractive market segments
⢠Re-introducing legacy products at lower costs
⢠Strong reputation for highly engineered product capabilities
⢠Expanded marketing capabilities
⢠Disciplined capital deployment & strong cash flow generator
⢠Strong and flexible balance sheet, plus history of stable cash flows, provides opportunity for
future value creation
⢠Dedicated to enhancing shareholder value
⢠Increasing profits through culture of cost discipline
⢠Reducing debt
⢠Returning cash through dividends and share repurchases
⢠Current dividend commitment of $0.54/share annually (yield > 3.8% as of early November)
16. Management Team
John C. Orr, President & Chief Executive Officer
⢠Named President and CEO May 2005
⢠Previously President and COO, responsible for global manufacturing and
distribution
⢠Prior General Manager of Buckhorn
⢠Previous 28 years with Goodyear, including Vice President of Manufacturing
for North America and Director of Manufacturing for Latin America Division
Gregg Branning, SVP, Chief Financial Officer & Corporate Secretary
⢠Joined Myers as CFO in September 2012
⢠Previously VP of Finance and CFO of Danaher subsidiary, Thomson Industries,
a global industrial manufacturing business
⢠Prior President of Danaher subsidiary, Accu-Sort, global developer and
manufacturer of technological products; also CFO of Joslyn Hi-Voltage
⢠Prior to Danaher, 13 years with Hamilton Sundstrand & 7 in public accounting
16
More than 100 Years of Experience in Manufacturing
17. 17
More than 100 Years of Experience in Manufacturing
Joel Grant, SVP & General Manager, Material Handling Segment
⢠Named VP & General Manager, Material Handling Segment in November of 2010,
with his title changing to Senior VP & General Manager in July of 2011
⢠Previously Managing Director of Material Handling & GM of Buckhorn
⢠Prior Director of Operations of Material Handling, Director of Sales & Marketing,
Buckhorn, and Director of Sales, Buckhorn
⢠Over 13 years of experience with the Sonoco Products Company and seven years
with Continental Group of New York (division sold to Sonoco Products)
Alex Williamson, VP & General Manager, Distribution Segment
⢠Joined Myers as VP & General Manager, Distribution Segment in June 2014
⢠Previously Co-President of Seaman Corporation
⢠Held senior leadership positions at Noveon Inc. (now Lubrizol)
⢠Over 24 years of experience in business management and an extensive background
in marketing, sales, chemistry, and product engineering
Management Team
18. 18
More than 100 Years of Experience in Manufacturing
Michael Valentino, VP & General Manager, Myers do Brasil, Novel,
Scepter & Ameri-Kart
⢠Joined Myers as VP & General Manager, Myers do Brasil, Novel, Scepter and Ameri-Kart
in January 2015
⢠Previously spent over 15 years with The Marmon Group, a Berkshire Hathaway
Company, holding numerous leadership positions
⢠Most recently served as sector president of Marmon Foodservice Technologies and
president of Prince Castle and Silver King
⢠During tenure with The Marmon Group was instrumental in increasing shareholder
value by improving margins, optimizing resources and developing a pipeline of
innovative new products
Management Team
19. Market Indicators
⢠Orders are forecasted to be up 1.1% in 2015; shipments are forecasted to grow by
2% in 2015
19
Material Handling
Source: Material Handling Industry (MHI)
(40.0)
(30.0)
(20.0)
(10.0)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2008 2009 2010 2011 2012 2013 2014 2015
Material Handling Index
Annual Rate of Change
Shipments % Orders %
20. Market Indicators
⢠The Outdoor Power Equipment Institute (OPEI) estimates that total outdoor power
equipment shipments will increase by 5.7% in 2015.
20
Material Handling
Source: OPEI U.S. Econometric Forecast â October 2015
ACTUAL FORECAST
2009 2010 2011 2012 2013 2014 2015 2016 2017
Consumer Products 6,223,328 6,588,176 5,875,396 6,191,291 6,380,444 5,902,915 6,409,825 6,633,121 6,858,693
Percent Change -10.6 5.9 -10.8 5.4 3.1 -7.5 8.6 3.5 3.4
Commercial Products 131,050 180,226 183,609 182,817 221,200 230,625 242,873 257,409 270,090
Percent Change -34.4 37.5 1.9 -0.4 21.0 4.3 5.3 6.0 4.9
Handheld Products 10,558,563 10,825,352 10,365,472 10,921,443 10,909,630 11,087,864 11,543,820 11,717,540 11,971,529
Percent Change -7.9 2.5 -4.2 5.4 -0.1 1.6 4.1 1.5 2.2
Total 16,912,941 17,593,754 16,424,477 17,295,551 17,511,274 17,221,404 18,196,518 18,608,070 19,100,312
-9.1 4.0 -6.6 5.3 1.2 -1.7 5.7 2.3 2.6
Last Forecast 17,121,135 17,846,631 18,485,298
21. Market Indicators
⢠Although recreational vehicle shipments are forecasted to grow at a
slower rate in 2015, it will be the sixth consecutive year for growth
21
Material Handling
Source: RVIA Release
12.4 11.1
2.3
(40)
(30)
(20)
(10)
0
10
20
30
40
50
60
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F
AnnualRateofChange(%)
Units(000)
RV Shipments
RV Unit Shipments (000) % Change from P/Y
22. Market Indicators
⢠The Rubber Manufacturers Association (RMA) projects a slight increase in
replacement tire shipments in 2015 (1.1%); YTD shipments are flat
22
Distribution
Source: JP Morgan, RMA
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F
Key Indicators for the Tire Market
Miles Driven (B) Repl Tire Shipments Gasoline Sales (Gal/B)
