2. Forward-looking Statements
Statements in this presentation concerning the Companyโs 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 Companyโs 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 Companyโs 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 Companyโs 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
โข Realigned and refocused business segments
โข Reduced reportable segments from 4 to 2 (Material Handling and Distribution)
โข Enhanced platform to accelerate organic and acquisitive growth
โข Refined new product development process
โข Cross-selling opportunities with Scepter across both segments
โข Attractive bolt-on acquisition platforms in Material Handling and Distribution
โข Global opportunity for emerging market expansion and penetration
โข Strong market positions and brand recognition across both segments
โข Plans for further penetration of attractive market segments
โข Re-introducing legacy products at lower costs
โข Strong reputation for highly engineered product capabilities
โข Expanded marketing capabilities
โข Disciplined capital deployment & strong cash flow generator
โข Strong and flexible balance sheet, plus history of stable cash flows, provides opportunity for
future value creation
โข Dedicated to enhancing shareholder value
โข Increasing profits through culture of cost discipline
โข Reducing debt
โข Returning cash through dividends and share repurchases
โข Current dividend commitment of $0.54/share annually (exceeds 3.7% yield as of late August)
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:
โข Material Handling
โข Distribution
โข Engineered Products
โข Lawn and Garden
Into two distinct businesses:
โข Material Handling
โข Distribution
Divested
Non-Core
Businesses
Bolt-on
Acquisitions
Acquired Scepter in July 2014 for $157M
โข Annual Sales of approximately $100M
increases Material Handling revenue
by 25%
โข Higher margins and better growth
potential than combined divested
businesses
Divested WEK Industries, Inc. in June 2014 for $20M
โข Used proceeds to help fund the acquisition of Scepter
Divested Lawn and Garden segment in February 2015 for $110M
โข Net proceeds from the transaction used to pay down debt
5. 5
Two core businesses & reporting
segments:
Material Handling
โข Highly engineered, polymer-based returnable
packaging and storage and safety products
โข Specialty molding
Distribution
โข Largest U.S. wholesale distributor of tools, supplies
and equipment for the tire, wheel and undervehicle
service industry
โข 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. โข Focus on markets that have strong, sustainable growth and profit potential
through new product introductions, expanding marketing and cross-selling
โข Material Handling:
โข Food processing
โข Agriculture
โข Industrial
โข Marine
โข Distribution:
โข Auto dealer tire market
โข Fleet maintenance
โข E-Commerce
โข Invest in organic growth opportunities, process improvements and market
development for enhanced value creation
โข Drive earnings growth faster than sales growth
โข 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
โข 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
โข ROIC in 2014 impacted by acquisition of Scepter which took place mid-year
โข 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)
โฅ 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. Second Quarter 2015 Financial Summary
10
โข Net sales increased due to the Scepter
acquisition and new product sales, but
were partially offset by decreased
sales in the Material Handling
Segmentโs agricultural, industrial,
recreational vehicle and marine end
markets
โข Gross profit margin increased due to
the contribution from Scepter, pricing
actions, new product sales and
ongoing cost reduction activities
โข SG&A decreased due to the reversal of
a litigation reserve, lower salaries and
other employee related expenses and
lower variable selling expenses,
including freight, all of which more
than offset the incremental SG&A
expense from Scepter
Note: All figures except ratios and percents are $Millions
Continuing Operations Q2 Q2 %
Highlights 2015 2014 Change
Net sales $164.3 $152.8 7.6%
Gross profit margin 30.8% 27.8%
SG&A $30.8 $31.2 (1.3)%
Income from continuing
ops - adjustedยน $9.9 $7.2 38.8%
Effective tax rate 36.8% 34.2%
Income per diluted share
from continuing ops -
adjustedยน $0.32 $0.22 45.5%
ยนSee Reconciliation of Non-GAAP measures on slide 24
11. Solid Cash Flow Generation
11
Notes:
1) Free cash flow calculated as cash flow from continuing operations less capital expenditures for continuing operations.
2) Years 2012 โ 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
12. Strong & Flexible Balance Sheet
12
Notes:
1) Available liquidity at June 30, 2015 was $194M.
2) Data has not been adjusted to reflect discontinued operations.
Maintaining strong balance sheet for investments and
returning capital to shareholders
Net Debt
$(Millions)
$234
$195
$163 $161
$100
$79
$67
$89
$38
$230
$198
$0
$50
$100
$150
$200
$250
$300
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q2 2015
Long-term
Target
1.5-2x
13. Balanced Approach to Capital Allocation
13
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
14. $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
โข Increasing Dividends
โข Increased Q1 2015 quarterly dividend by 4% to $0.135 per share
โข Buying Back Shares
โข Invested $33M to buy back 2.8M shares from 2011 to 2013
โข Invested $55M to buy back 2.7M shares in 2014
โข Invested $6.6M to buy back .4M shares in Q1 2015
โข 4.1 million shares remaining in Board authorization (as of 6-30-15)
14
Quarterly Dividends Paid $Millions Invested in Share Repurchases
$21.0
$4.2
$8.1
$55.0
$6.6
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
2011 2012 2013 2014 2015
15. Why Myers?
15
โข Realigned and refocused business segments
โข Reduced reportable segments from 4 to 2 (Material Handling and Distribution)
โข Enhanced platform to accelerate organic and acquisitive growth
โข Refined new product development process
โข Cross-selling opportunities with Scepter across both segments
โข Attractive bolt-on acquisition platforms in Material Handling and Distribution
โข Global opportunity for emerging market expansion and penetration
โข Strong market positions and brand recognition across both segments
โข Plans for further penetration of attractive market segments
โข Re-introducing legacy products at lower costs
โข Strong reputation for highly engineered product capabilities
โข Expanded marketing capabilities
โข Disciplined capital deployment & strong cash flow generator
โข Strong and flexible balance sheet, plus history of stable cash flows, provides opportunity for
future value creation
โข Dedicated to enhancing shareholder value
โข Increasing profits through culture of cost discipline
โข Reducing debt
โข Returning cash through dividends and share repurchases
โข Current dividend commitment of $0.54/share annually (exceeds 3.7% yield as of late August)
17. Management Team
John C. Orr, President & Chief Executive Officer
โข Named President and CEO May 2005
โข Previously President and COO, responsible for global manufacturing and
distribution
โข Prior General Manager of Buckhorn
โข 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
โข Joined Myers as CFO in September 2012
โข Previously VP of Finance and CFO of Danaher subsidiary, Thomson Industries,
a global industrial manufacturing business
โข Prior President of Danaher subsidiary, Accu-Sort, global developer and
manufacturer of technological products; also CFO of Joslyn Hi-Voltage
โข Prior to Danaher, 13 years with Hamilton Sundstrand & 7 in public accounting
17
More than 100 Years of Experience in Manufacturing
18. 18
More than 100 Years of Experience in Manufacturing
Joel Grant, SVP & General Manager, Material Handling Segment
โข Named VP & General Manager, Material Handling Segment in November of 2010,
with his title changing to Senior VP & General Manager in July of 2011
โข Previously Managing Director of Material Handling & GM of Buckhorn
โข Prior Director of Operations of Material Handling, Director of Sales & Marketing,
Buckhorn, and Director of Sales, Buckhorn
โข 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
โข Joined Myers as VP & General Manager, Distribution Segment in June 2014
โข Previously Co-President of Seaman Corporation
โข Held senior leadership positions at Noveon Inc. (now Lubrizol)
โข Over 24 years of experience in business management and an extensive background
in marketing, sales, chemistry, and product engineering
Management Team
19. 19
More than 100 Years of Experience in Manufacturing
Michael Valentino, VP & General Manager, Myers do Brasil, Novel,
Scepter & Ameri-Kart
โข Joined Myers as VP & General Manager, Myers do Brasil, Novel, Scepter and Ameri-Kart
in January 2015
โข Previously spent over 15 years with The Marmon Group, a Berkshire Hathaway
Company, holding numerous leadership positions
โข Most recently served as sector president of Marmon Foodservice Technologies and
president of Prince Castle and Silver King
โข 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
20. (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 %
Market Indicators
โข Orders grew an average of 9% in Q1 2015; shipments grew an average of 1% during
the same period
20
Material Handling
Source: Material Handling Industry (MHI)
21. Market Indicators
โข The Outdoor Power Equipment Institute (OPEI) estimates that total outdoor power
equipment shipments will increase by 3.6% in 2015.
21
Material Handling
Source: OPEI U.S. Econometric Forecast โ December 2014
2009 2010 2011 2012 2013 2014 2015 2016
Consumer Products 6,223,328 6,588,176 5,875,396 6,191,291 6,379,735 5,897,982 6,221,402 6,553,717
Percent Change -10.6 5.9 -10.8 5.4 3.0 -7.6 5.5 5.3
Commercial Products 131,050 180,226 183,609 182,817 221,200 224,227 238,675 253,264
Percent Change -34.4 37.5 1.9 -0.4 21.0 1.4 6.4 6.1
Handheld Products 10,558,563 10,825,352 10,365,472 10,921,443 10,909,630 11,149,771 11,430,870 11,679,547
Percent Change -7.9 2.5 -4.2 5.4 -0.1 2.2 2.5 2.2
Total 16,912,941 17,593,754 16,424,477 17,295,551 17,510,565 17,271,980 17,890,947 18,486,528
-9.1 4.0 -6.6 5.3 1.2 -1.4 3.6 3.3
ACTUAL FORECAST
22. Market Indicators
โข Although recreational vehicle shipments are forecasted to grow at a slower rate in
2015, it will be the sixth consecutive year for growth
22
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
23. Market Indicators
โข The Rubber Manufacturers Association (RMA) projects a slight decrease in
replacement tire shipments in 2015 (-0.4%); YTD shipments are flat
23
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)
24. Reconciliation of Non-GAAP Measures
24
MYERS INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT (UNAUDITED)
(Dollars in millions, except per share data)
Quarter Ended June 30, Six Months Ended June 30,
2015 2014 2015 2014
Material Handling
Income from continuing operations before income
taxes as reported $ 20.8 $ 11.5 $ 34.3 $ 24.3
Litigation reserve reversal (3.0) โ (3.0) โ
Restructuring expenses and other adjustments 0.4 0.7 0.5 0.7
Income from continuing operations before income
taxes as adjusted 18.2 12.2 31.8 25.0
Distribution
Income from continuing operations before income
taxes as reported 4.5 5.1 8.0 8.6
Restructuring expenses and other adjustments โ 0.3 0.1 0.8
Income from continuing operations before income
taxes as adjusted 4.5 5.4 8.1 9.4
Corporate and interest expense
(Loss) before income taxes as reported (8.1) (7.0) (21.0) (16.0)
Transaction costs โ 0.6 โ 0.6
Professional and legal fees โ โ 1.8 โ
Corporate and interest expense as adjusted (8.1) (6.4) (19.2) (15.4)
Continuing Operations
Income from continuing operations before income
taxes as reported 17.3 9.6 21.3 16.9
Litigation reserve reversal (3.0) โ (3.0) โ
Restructuring expenses and other adjustments 0.4 1.6 2.4 2.1
Income from continuing operations before income
taxes as adjusted 14.7 11.2 20.7 19.0
Income taxes* (4.8) 4.0 (6.7) 6.8
Income from continuing operations as adjusted $ 9.9 $ 7.2 $ 14.0 $ 12.2
Adjusted earnings per diluted share from continuing
operations $ 0.32 $ 0.22 $ 0.45 $ 0.36
*Income taxes calculated using the normalized effective tax rate for each year.
Note on Reconciliation of Income and Earnings Data: Income (loss) excluding the items mentioned above in the text of this release and in this
reconciliation chart is a non-GAAP financial measure that Myers Industries, Inc. calculates according to the schedule above, using GAAP amounts from
the unaudited Consolidated Financial Statements. The Company believes that the excluded items are not primarily related to core operational activities.
The Company believes that income (loss) excluding items that are not primarily related to core operating activities is generally viewed as providing useful
information regarding a company's operating profitability. Management uses income (loss) excluding these items as well as other financial measures in
connection with its decision-making activities. Income (loss) excluding these items should not be considered in isolation or as a substitute for net income
(loss), income (loss) before taxes or other consolidated income data prepared in accordance with GAAP. The Company's method for calculating income
(loss) excluding these items may not be comparable to methods used by other companies.