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8-K - FORM 8-K - MYERS INDUSTRIES INCd504365d8k.htm

Exhibit 99.1

 

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March2013MyersIndustrie


 

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resentaonForwardLookingStatementsStatementsinthispresentationconcerningtheCompany’sgoals,strategies,andexpectationsforbusinessandfinancialresultsmaybe“forward-lookingstatements“withinthemeaningofthePrivateSecuritiesLitigationReformActof1995andarebasedoncurrentindicatorsandexpectations.Wheneveryoureadastatementthatisnotsimplyastatementofhistoricalfact(suchaswhenwedescribewhatwe“believe,”“expect,“or“anticipate“willoccur,andothersimilarstatements),youmustrememberthatourexpectationsmaynotbecorrect,eventhoughwebelievetheyarereasonable.Wedonotguaranteethatthetransactionsandeventsdescribedwillhappenasdescribed(orthattheywillhappenatall).Youshouldreviewthispresentationwiththeunderstandingthatactualfutureresultsmaybemateriallydifferentfromwhatweexpect.Manyofthefactorsthatwilldeterminetheseresultsarebeyondourabilitytocontrolorpredict.Youarecautionednottoputunduerelianceonanyforward-lookingstatement.Wedonotintend,andundertakenoobligation,toupdatetheseforward-lookingstatements.Thesestatementsinvolveanumberofrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedorimpliedintheapplicablestatements.Suchrisksinclude:(1)Fluctuationsinproductdemandandmarketacceptance(2)Uncertaintiesassociatedwiththegeneraleconomicconditionsindomesticandinternationalmarkets(3)Increasedcompetitioninourmarkets(4)Changesinseasonality(5)Difficultiesinmanufacturingoperations,suchasproductionoutagesormaintenanceprograms(6)Rawmaterialavailability(7)Fluctuationsinrawmaterialcosts;fluctuationsoutsidethe“normal“rangeofindustrycycles(8)Changesinlawsandregulationsandapprovalsanddecisionsofcourts,regulators,andgovernmentalbodiesMyersIndustries,Inc.encouragesinvestorstolearnmoreabouttheseriskfactors.AdetailedexplanationofthesefactorsisavailableintheCompany’spubliclyfiledquarterlyandannualreports,whichcanbefoundonlineatwww.myersindustries.comandattheSEC.govwebsite


 

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CompanyataGlanceNYSE:MYEFoundedin1933HeadquarteredinAkron,OH3,378employeesDiversi?edInternaonalmanufacturerofpolymerproductsandwholesaledistributorfoursegmentsthatoperatesin


 

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BusinessSegments


 

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VisionforProfitableGrowthMyersIndustriesisandwillconnuetobe:AdiversifiedindustrialcompanyfocusedonfivekeygrowthplaormsinnichemanufacturingandresupplydistribuonAdecentralizedbusinessrootedinstrongbrandsTheleaderinitsindustries,deliveringcustomerdedicaonandstrongfinancialresultsthrough…InnovaonOperaonsExcellenceOrganizaonDevelopmentGrowininNorthAmericaandrapidlydevelopinginternaonalmarketsviaorganicgrowthandselecve,highlyvalue-­addedacquisionsImprovingunderperformingoperaons


 

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GrowthPlaormsWewillconnuouslyupgradethevalueofMyersthroughdisciplinedporoliomanagementandastructuredorganizaonoperangaroundmarket-­basedgrowthplaorms


 

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aormtwthReturnableDriveconversionstoreusableproductsthoughMaterialHandlingfurtherpenetraonoffood,liquid,bulksolidsandPackagingagriculturalmarkets.Storage&SafetyFurthergrowplaormwithacquisions.StrengthencompeveadvantagethroughProductsMaterialHandlingdistribuonchannels.TireRepair&LeverageproductandcustomerexpersetogrowEngineeredProductsRetreadProductsnichemarket.SpecialtyExpandourcapabiliestofurthergrowourEngineeredProductsMoldingposionsinMarineandRV.TireSupplyGrowthroughmarketreach,innovaveproductsDistribuonDistribuonandexpandedglobalsourcing.


 

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InnovaveNewProductsin2012


 

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IInternalprojectinLawn&GardenSegmenttodriveoutcosts,increaseproducvityandimprovepro?tabilityAncipatedtoyieldannualsavingsofapproximately$5millionby2014Addressessub-­segmentsofthebusinessindividuallyNursery–variouscostreduconeffortstoimproveprofitabilityGreenhouse–takeaconstosimplify,consolidateandbalancecapacitywithdemandConnuetolookatfurtheroponsincludingexternalopportunies


 

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Generatereturnsabovecost-­of-capitalProducestrongfreecash?owAchieveorganicgrowth>1.5xGDPdevelopedRealizesalesinfromthelastthreenewproducts,yearsofservices>10%orofmarketstotalsalesTargeta5%reduconinCOGSeachyearMaintainstrong?nancialposionBalancedapproachtocapitalallocaonincludingreturningcashtoshareholders


 

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ProgressinAccomplishingGoalsKeyMetrics*ROIC=NetOperatingProfitAfterTax/(Debt+Equity).**NPD=NewProductDevelopment.Calculationbasedonproducts/servicesintroducedwithinlast3years


 

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Achieved40%increaseinadjustedEPS$0.94comparedto$0.67in2011CompletedtwostrategicacquisionswhichwereaccreveNovel&JamcoservicesAspartofwereInnovaintroducedoniniavemorethan40newproductsand6%oftotalsalesin2012camefromproducts,servicesormarketsdevelopedinthelastthreeyears.Realized$16millioninOperaonsExcellencesavings3%ofCostofGoodssoldIncreasedcapitalspendingby$5.1millionto$27million55%wasforgrowthorientedprojects14%Returnedand300kcashsharetoshareholdersbuybackthroughdividendincreaseof


 

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Debt&Debt-to-CapitalNote:1)Debt-to-Capitalratiocalculatedasdebt/(debt+equity).Wellpositionedtomakeselective,highreturninvestmentsSolidCashFlowGeneraonFreeCashFlow$(Millions)Notes:1)Freecashflowcalculatedascashflowfromcontinuingoperationslesscapitalexpenditures


 

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SolidCashFlowGeneraonFreeCashFlow$(Millions)Notes:1)Freecashflowcalculatedascashflowfromcontinuingoperationslesscapitalexpenditures.


 

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1)MaintaintheBusiness2)GrowStakeholderValueOrganicGrowthCapExProcessImprovementsNewProductDevelopmentAcquisions3)ReturnCapitaltoStakeholdersDividendsShareRepurchasesDebtReducon


 

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DividendpaideveryyearsincePublicin1971DividendsPaidNotes:1)Aboveadjustedforstockdividendsandsplitsin2000,2001,2002and2004.2)In2007therewasanadditionalspecialdividend(notshownabove)of$0.28or$9.9Maccruedbutnotpaiduntil2008,resultingfromamergerterminationpayment.3)In2012therewasanaccelerateddividendpaidinDecemberthatisnotreflectedaboveSharerepurchasesSpent$4Mtobuyback300ksharesin2012Spent$20Mtobuyback2Msharesin2011


 

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Q1OutlookMaterialHandlingSeasonalityinBrazilwillunfavorablyimpactthequarterLawn&GardenQ4Solid2012ordertoacQ1vity2013quarter-­-to-­-dateshouldbene?ttheontopquarterofthedelayincustomerdemandfromDistribuonconAncipatenuedweakcapturingmarketplacegreatersharesofbothequipmentandsuppliessalesi naEngineeredProductsinDemandsalesininthatmarketyear-­-over-­-yeartransplantautowillbeatnormallevelsduringQ1resulnginadeclineFullYearOutlookimprovementSlowQ1impactedbyITinvestments;butthengoodyear-­-over-­-yearOverallexpectanotheryearofgoodperformanceimprovement


 

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FocusedstrategyCustomerDedicaonInnovaonOperaonsExcellenceOrganizaonDevelopmentFinancialStrengthTargetedGrowthPlaormsReturnablePackagingStorage&SafetyProductsTireRepair&RetreadProductsSpecialtyMoldingTireSupplyDistribuonImprovedperformanceGrossmargins,earnings,cash?ow,returnsStrongand?exiblebalancesheetBalancedapproachtocapitalallocaon


 

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Appendix


 

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StrategicPrinciplesCustomerStructuretheorganizationclosertothecustomer-decentralizeBuildandmaintainprocessestomaximizecustomerinputDedicationLeadourindustriesinservice,qualityanddeliveryKeyDelivernext-generationproducts/servicesinhighnichemarketsInnovationUtilize“VoiceoftheCustomer“toolsMarketbasedstrategicplanningOperationsMaintainhigheststandardsinsafetyandproductivityEnsureprocessforcontinuousquality,serviceandproductivityExcellenceimprovementManagementOrganizationEnsureindustry-besttalentDevelopmentMakeMyers’traininganddevelopmentacompetitiveadvantageCapabilitiesFinancialGeneratestrongfinancialresults–EBITDAgrowth,Cash,ROICStrengthMaintainastrongbalancesheetBuildindustryleadingdecision-makingtoolsacrossthebusiness


 

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PorolioEvoluon


 

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MaterialHandlingMHEM(MaterialHandlingEquipment)IndexMaterialHandlingIndexAnnualrateofchangeSource:MaterialHandlingIndustryofAmerica,January2013Forecast


 

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Lawn&GardenHousingStarts;ConsumerSentimentSources:NationalAssociationofHomeBuilders(NAHB);Feb2013ThomsonReuters/UniversityofMichigan


 

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MacroIndicatorsDistributionReplacementTireShipments;MilesDriven;FuelPricesKeyIndicatorsfortheTireMarketSource:JPMorgan,RMA,EnergyInformationAdministration


 

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MacroIndicatorsEngineeredProductsRVIA;MotorVehicleandPartsProductionSource:RVIAForecasts,Dec2012Source:FRBG17Release(Jan2013);MAPIForecast,Dec2012


 

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