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September 2015
Myers Industries, Inc.
Investor Presentation
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 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 Company’s 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 Company’s 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 Company’s publicly filed quarterly
and annual reports, which can be found online at www.myersindustries.com and at the SEC.gov web site.
2
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 (exceeds 3.7% yield as of late August)
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
Two core businesses & reporting
segments:
Material Handling
• Highly engineered, polymer-based returnable
packaging and storage and safety products
• Specialty molding
Distribution
• Largest U.S. wholesale 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%
Business Segments
Material Handling | Reusable Containers Distribution | Tire Maintenance Supplies
6
• 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
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)
≥ 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
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
Second Quarter 2015 Financial Summary
10
• Net sales increased due to the Scepter
acquisition and new product sales, but
were partially offset by decreased
sales in the Material Handling
Segment’s agricultural, industrial,
recreational vehicle and marine end
markets
• Gross profit margin increased due to
the contribution from Scepter, pricing
actions, new product sales and
ongoing cost reduction activities
• 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 - adjusted¹ $9.9 $7.2 38.8%
Effective tax rate 36.8% 34.2%
Income per diluted share
from continuing ops -
adjusted¹ $0.32 $0.22 45.5%
¹See Reconciliation of Non-GAAP measures on slide 24
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 – 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
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
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
$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 $6.6M to buy back .4M shares in Q1 2015
• 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
Why Myers?
15
• 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 (exceeds 3.7% yield as of late August)
Appendix
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
17
More than 100 Years of Experience in Manufacturing
18
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
19
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
(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
• 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)
Market Indicators
• 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 – 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
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
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
Market Indicators
• 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)
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) — (3.0) —
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 — 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 — 0.6 — 0.6
Professional and legal fees — — 1.8 —
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) — (3.0) —
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.
Mye presentation september 2015

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Mye presentation september 2015

  • 1. September 2015 Myers Industries, Inc. Investor Presentation
  • 2. 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 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 Company’s 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 Company’s 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 Company’s 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 (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: • 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. wholesale 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%
  • 6. Business Segments Material Handling | Reusable Containers Distribution | Tire Maintenance Supplies 6
  • 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) ≥ 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 • Net sales increased due to the Scepter acquisition and new product sales, but were partially offset by decreased sales in the Material Handling Segment’s agricultural, industrial, recreational vehicle and marine end markets • Gross profit margin increased due to the contribution from Scepter, pricing actions, new product sales and ongoing cost reduction activities • 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 - adjusted¹ $9.9 $7.2 38.8% Effective tax rate 36.8% 34.2% Income per diluted share from continuing ops - adjusted¹ $0.32 $0.22 45.5% ¹See 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 – 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 • 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 $6.6M to buy back .4M shares in Q1 2015 • 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 • 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 (exceeds 3.7% yield as of late August)
  • 17. 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 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 • 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
  • 19. 19 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
  • 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 • 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 • 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 – 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 • 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 • 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) — (3.0) — 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 — 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 — 0.6 — 0.6 Professional and legal fees — — 1.8 — 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) — (3.0) — 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.