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Leadership Brands Helping Customers Grow! www.myersindustries.com June 2009 Business Strategy Overview Focused on Sustainable, Profitable Growth
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Page 1: Business Strategy Overview

1 Leadership Brands Helping Customers Grow!

www.myersindustries.com

June 2009

Business Strategy Overview Focused on Sustainable, Profitable Growth

Page 2: Business Strategy Overview

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•  Diversified manufacturer and distributor with a leading portfolio of branded products in:

•  Material Handling: Reusable Plastic Containers & Pallets •  Lawn & Garden: Plastic Horticultural Containers •  Auto & Custom: Custom-Molded Rubber & Plastic Products •  Distribution: Tire, Wheel & Undervehicle Service Products

•  Strong position in niche markets -- #1 or #2 market position

•  Diverse customer base -- emphasis on forming strong relationships

•  Experienced and performance-driven management team -- executing a solid evolution and transformation strategy for growth

•  Disciplined operating strategy in process -- delivering results: •  Positioning for the Growth in Our Chosen Businesses & Niche Markets •  Optimizing Cost Structure Across Our Businesses •  Strong Cash Flow Generation & Balance Sheet “Readiness” •  Shareholder Returns -- Regular & Higher Dividend for more than 35 years •  Focused on Creating Sustainable Growth and Value for all Shareholders

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Leadership Brands by Segment -- Overview

Auto & Custom Group

Engineered rubber & plastic OEM parts, tire repair & custom products for diverse markets. . .

The largest distributor of tools, equipment & supplies for the tire & undervehicle service industry. . .

Distribution Group

Lawn & Garden Group

Leading brands for plastic pots, trays, baskets & decorative resin planters. . .

Material Handling Group

Strongest brands and unmatched selection of reusable plastic containers, bins & pallets. . .

Page 4: Business Strategy Overview

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• Initiated in 2005, the SBE is Our Operating Strategy Focused on Business Evolution & Transformation to Create Value For Shareholders, Customers & Employees.

• Centered Around Five Key Operating Principles & Tactics, Including:

•  Be the innovator of niche, high-margin products in targeted segments •  Strengthen the business through strategic acquisitions and divestitures •  Use our strong cash flow to 1) reduce debt, 2) invest in core businesses and

3) strengthen return to shareholders •  Maintain “Balance Sheet Readiness” to act on appropriate business growth

and value creation opportunities

•  Enhance succession planning; emphasize right people in right positions •  Look for “strategic additions” -- personnel to optimize operations

•  Minimize expenses and maximize cash flow -- Streamlining and Productivity •  Balance product pricing with raw material price cycles to recover input costs •  Withdraw from low-margin, high-cost markets

•  Enhance customer-centered focus •  Position brands as “Contributors to Our Customers’ Success”

•  New product innovation – deliver solutions that excite customers •  Leverage brand strength to increase market share, value and margins •  Concentrate on niche markets with sustainable profit potential

Business Growth

Customer Satisfaction

Cost Control

Organizational Development

Positioning for the Future

Page 5: Business Strategy Overview

• Management is executing growth opportunities and fueling value creation:

Business Optimization & Strategy

•  Aggressively pursue new customers and markets

•  Heighten R&D focus for high margin new products

•  Develop new distribution channels with Myers Logistics

•  Explore potential divestiture(s) in non-strategic markets

•  Continue opportunistic, bolt-on acquisitions

2006 - 2008 Streamlining & Performance Focus

2009 - Long-Term Growth & Profitability Focus

•  Realigned into four market-focused Segments

•  Initiated “Strategic Business Evolution” Strategy

•  Exited highly competitive European business

•  Strategic Lawn & Garden acquisition (ITML)

•  Strategic Material Handling acquisition (SAS)

Operational Excellence

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•  Maintain pricing structure to recover raw material costs

•  Leverage resin reprocessing capacity to improve low-cost

manufacturing leadership

•  Capitalize on brand strength in Material Handling to drive

new business development -- “Solutions Selling”

•  Reinforce customer loyalty with value-added capabilities

•  Created standalone Lawn & Garden Group brand to improve customer service and product positioning

•  Implemented strategic pricing increases across all lines

•  Strengthened Material Handling products line-up for

catalog distributors and custom packaging conversions

•  Reduced exposure to automotive OE market

Competitive Positioning

Page 6: Business Strategy Overview

2006 - 2008 Streamlining & Performance Focus

2009 - Long-Term Growth & Profitability Focus

•  Enhance manufacturing efficiencies and workflow

•  Execute optimization program in Lawn & Garden

(est. $20 mm annual savings starting in second half of 2009)

•  Execute optimization plan in Material Handling

(est. $13 to $16 mm annualized savings over 2009 - 2010)

•  Cash: Decrease operating costs, maximize cash flow --

remain “Balance Sheet Ready” for Opportunities!

•  Invested > $70 mm in molds and new equipment

•  Consolidated five manufacturing plants, four

distribution branches and related workforce

•  Implemented new Distribution technologies

•  Added Corporate Materials Application function to

lead initiatives in resin reprocessing and usage

•  Added necessary strategic headcount in Segments

(operations, finance, marketing and sales)

Operational Excellence

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• Management is executing growth opportunities and fueling value creation:

What Are Critical Points of the Strategy Overview?

Page 7: Business Strategy Overview

• Enhancing innovation and solutions to create the next-generation of products.

• Expanding leadership in our markets through multiple growth platforms.

• Cultivating new niche markets where we see both higher value returns and a significant need for our products and services.

• Aligning our operations to decrease costs and increase productivity.

• Maintaining disciplined use of cash – optimize Balance Sheet “Readiness”.

• Divesting businesses that do not fit within our strongest competencies.

• Maintaining our strong commitment to corporate responsibility and integrity.

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Our Actions Are Focused on Fueling Higher Levels of Value and Returns for ALL Shareholders!

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Our Disciplined Operating Strategy Positions us for Higher Levels of Growth and Value for Shareholders, Customers and Employees.

Leading Positions in Niche Markets •  Leadership brands positioned through

innovation, selection, service and quality

•  Strong customer relationships supported by value-added manufacturing and distribution

Unmatched Manufacturing Capabilities •  Full spectrum of plastic and rubber capabilities

unmatched by any other competitor in our markets

•  Focus on continuous operational improvements

•  Investments in next-generation technology

Diversified Market Structure •  Limited exposure to any single end market

•  Multiple growth platforms across business groups and brands

Solid Platform for Future Growth •  Strong balance sheet for opportunistic investment

•  Clearly focused operating strategy to. . .

o  Optimize cost structure o  Maximize cash flow o  Improve market positioning and share o  Create value for ALL shareholders!

Download Our Complete Investor Presentation to Learn More! www.myersind.com/investor

Page 9: Business Strategy Overview

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