Myers Industries, Inc. · NYSE:MYE
Myers Industries — Investor Presentation (March 2013)
26 slides from Myers Industries's investor presentation, March 2013
Slide 1: Investor Presentation
March 2013 Myers Industries, Inc. Investor Presenta4on
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation concerning the Company’s 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 indicator
Slide 3: Company at a Glance
Company at a Glance • NYSE: MYE 2012 Adjusted • Founded in 1933 2012 Net Sales EBIT • Headquartered in Akron, OH • 3,378 employees • Diversified Interna4onal manufacturer of polymer products and wholesale distributor that operates in four segments 3
Slide 4: Business Segments
Business Segments SBUCKHORN @fi4KRO-mMILS Material Handling 0 c The most recognized brands for reusable containers and pallets to a OVE : : replace cardboard and other disposable packaging — reducing supply chain waste and costs... | MYERS Myers Industries ° Lawn & Garden Lawn & Garden Group |. . Le
Slide 5: Vision for Profitable Growth
Vision for Profitable Growth Myers Industries is and will con4nue to be: • A diversified industrial company focused on five key growth plaYorms in niche manufacturing and 4re supply distribu4on • A decentralized business rooted in strong brands • The leader in its industries, delivering customer dedica
Slide 6: Growth Platforms
Growth PlaYorms • We will con*nuously upgrade the value of Myers through disciplined por7olio management and a structured organiza*on opera*ng around market-‐based growth pla7orms: Pla7orm Segment Growth Drive conversions to reusable products though Returnable Material Handling further penetra4on o
Slide 7: Growth Platform Bolt-On Acquisitions in 2012
Growth PlaYorm Bolt-‐on Acquisi4ons in 2012 • Novel • Designer and manufacturer of returnable plas4c crates and totes for the transport of beverages and agricultural products • Two strategically located manufacturing facili4es in Bahia & Paraná • Clear fit with Myers’ returnable packaging market foc
Slide 8: Innovative New Products in 2012
Innova4ve New Products in 2012 360 Cell 18” Deep Plug Tray Lean Panel - Pick Rack Industry First Decorative Sloped Containers Louvered Panel Bin Clip (Patented) New Sizes Co-Ex Slope-It Pots & Trays Bin Insert Water Based Tread Cement True Size Nursery Containers Tilt-View Electronic Testing Equipme
Slide 9: Improving Underperforming Assets
Improving Underperforming Assets • Internal project in Lawn & Garden Segment to drive out costs, increase produc4vity and improve profitability • An4cipated to yield annual savings of approximately $5 million by 2014 • Addresses sub-‐segments of the business individually • Nursery – various cost red
Slide 10: Our Goals
Our Goals • Generate returns above cost-‐of-‐capital • Produce strong free cash flow • Achieve organic growth > 1.5x GDP • Realize sales from new products, services or markets developed in the last three years of > 10% of total sales • Target a 5% reduc4on in COGS each year • Maintain strong financi
Slide 11: Progress in Accomplishing Goals
Progress in Accomplishing Goals Key Metrics Goals 2012 2011 Sales Growth > 1.5x GDP 4.7% 2.4% Gross Margin > 27% 27.4% 26.3% ROIC* > 10% 10.0% 8.5% Innovation / NPD** >10% of Sales 6% 3% Operations Excellence Savings 5% of COGS (gross) 3% 3% *ROIC = Net Operating Profit After Tax / (Debt + Equity).
Slide 12: Full Year 2012 Highlights
Full Year 2012 Highlights • Achieved 40% increase in adjusted EPS • $0.94 compared to $0.67 in 2011 • Completed two strategic acquisi4ons which were accre4ve • Novel & Jamco • As part of Innova4on ini4a4ve more than 40 new products and services were introduced • 6% of total sales in 2012 came from p
Slide 13: Strong & Flexible Balance Sheet
Strong & Flexible Balance Sheet Debt & Debt-to-Capital $300 44% 60% 48% 43% $250 42% 42% 40% 50% 35% $200 29% 28% 26% 29% 40% $150 30% $100 20% $50 10% $0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Debt ($ Millions) Debt to Capital Note: 1) Debt-to-Capital ratio calculated as debt/(de
Slide 14: Solid Cash Flow Generation
Solid Cash Flow Genera4on Free Cash Flow $(Millions) $100 $80 $77 $60 $55 $57 $40 $42 $37 $31 $34 $20 $29 $25 $18 $20 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Notes: 1) Free cash flow calculated as cash flow from continuing operations less capital expenditures. 14
Slide 15: Priorities for Free Cash Flow
Priori4es for Free Cash Flow 1) Maintain the Business 2) Grow Stakeholder Value • Organic Growth Cap Ex • Process Improvements • New Product Development • Acquisi4ons 3) Return Capital to Stakeholders • Dividends • Share Repurchases • Debt Reduc4on 15
Slide 16: Returning Cash to Shareholders
Returning Cash to Shareholders • Dividend paid every year since Public in 1971 Dividends Paid $0.35 $0.30 = 5.7% CAGR $0.25 $0.20 $0.32 $0.15 $0.24 $0.24 $0.26 $0.28 $0.22 $0.18 $0.18 $0.19 $0.20 $0.20 $0.10 $0.05 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Notes: 1) Above adjusted for st
Slide 17: Q1 & Full Year 2013 Outlook
Q1 & Full Year 2013 Outlook Q1 Outlook • Material Handling • Seasonality in Brazil will unfavorably impact the quarter • Lawn & Garden • Solid order ac4vity quarter-‐to-‐date on top of the delay in customer demand from Q4 2012 to Q1 2013 should benefit the quarter • Distribu4on • An4cipate capturin
Slide 18: Positioned for Growth & Value Creation
Posi4oned for Growth & Value Crea4on • Focused strategy • Customer Dedica4on • Innova&on • Opera&ons Excellence • Organiza&on Development • Financial Strength • Targeted Growth Pla7orms • Returnable Packaging • Storage & Safety Products • Tire Repair & Retread Products • Specialty Molding • Tire Sup
Slide 19: Appendix
Appendix 19
Slide 20: Key Management Capabilities
Strategic Principles Customer • Structure the organization closer to the customer - decentralize • Build and maintain processes to maximize customer input Dedication • Lead our industries in service, quality and delivery Key Management Capabilities • Deliver next-generation products/services in high
Slide 21: Portfolio Evolution
Portfolio Evolution Evolution of the Myers Industries Business Portfolio Wanufacturing K Operations Begin > i s Current Business egments/Units tic Core Business Organic Growth & Secondary Acq & Bolt-On Expansions Listo Products? (1999) Decorative Resin Planters Primary Acq 3 ‘Akro-Mils Lawn &) Garde
Slide 22: Macro Indicators: Material Handling
Macro Indicators Material Handling MHEM (Material Handling Equipment) Index Material Handling Index Annual rate of change 30.0 20.0 10.0 0.0 (10.0) (20.0) (30.0) (40.0) 2008 2009 2010 2011 2012 2013 2014 Shipments Orders Source: Material Handling Industry of America, January 2013 Forecast 22
Slide 23: Macro Indicators: Lawn & Garden
Macro Indicators Lawn & Garden Housing Starts; Consumer Sentiment NAHB Housing Forecast Consumer Sentiment 2,500 40.0 90.0 40.0 30.0 80.0 30.0 2,000 20.0 70.0 Housing Ac5vity (000) Percent Change (y/y) Annual Rate of Change 20.0 10.0 60.0 1,500 50.0 10.0 Index 0.0 (10.0) 40.0 0.0 1,000 (20.0) 30.0 (
Slide 24: Macro Indicators: Distribution
Macro Indicators Distribution Replacement Tire Shipments; Miles Driven; Fuel Prices Key Indicators for the Tire Market 8.00% 6.00% 4.00% 2.00% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F -2.00% -4.00% -6.00% -8.00% Miles Driven (B) Repl Tire Shipments- Gasoline Sales (Gal/B) S
Slide 25: Macro Indicators: Engineered Products
Macro Indicators Engineered Products RVIA; Motor Vehicle and Parts Production RV Shipments Autos and Light Truck Assemblies Units (000) million units 450.0 60 12.00 80.0 400.0 50 60.0 10.00 350.0 40 40.0 Annual Rate of Change Annual Rate of Change (%) 30 8.00 300.0 20.0 20 250.0 6.00 0.0 10 200.0 0
Slide 26: Myers Industries, Inc.
MYERS INDUSTRIES, INC. Leadership Brands Helping Customers Grow!
Myers Industries — Investor Presentation (March 2013) on 6ix