Slide 1: Forward Looking Statements
Forward Looking Statements Certain information set forth in this communication, including financial estimates, projections about the industries and markets in which Matson and Span Alaska operate, and statements as to the expected timing, completion and effects of the proposed Transaction between Ma
Slide 2: Transaction Highlights
Transaction Highlights Matson Logistics, Inc. (indirect wholly owned sub of Matson, Inc.) to purchase 100% of Span Alaska Transportation, LLC from existing owners (primary owner is private equity firm Evergreen Pacific Partners) Transaction expected to receive full step-up in tax basis of assets Mat
Slide 3: Span Alaska Overview
Span Alaska Overview Market leader providing Less-than-Container Load (“LCL”) freight consolidation and forwarding services to the Alaska market Asset-light logistics business that aggregates LCL freight in Auburn, WA for consolidation and shipment to Alaska Moves freight through a network of termin
Slide 4: Strategic Rationale
Strategic Rationale Expands Matson Logistics into attractive new, asset light segment of freight forwarding Value-added LCL consolidation model with high degree of customer service and reliability Origination to final destination capabilities Further solidifies Matson’s position as critical freight
Slide 5: Financial Highlights
Financial Highlights Diversified customer base with no customer over 3% of annual revenue Top 25 customers account for less than 30% of annual revenue Long-standing relationships with limited customer turnover General cargo freight mix with less direct energy exposure Stable and Growing Revenue Base
Slide 6: Transaction Funding
Transaction Funding Matson expects to fund transaction from available borrowings under its existing $400 million revolving credit facility Sources and Uses of Funds SPAN Transaction ($ in millions) Sources of Funds: Borrowing on Revolving Credit Facility $202.6 Total Sources $202.6 Uses of Funds: Tr
Slide 7: Matson Secures Attractive Long-term Financing
Matson Secures Attractive Long-term Financing • Entered into a private placement commitment letter pursuant to which Matson expects to issue $200 million of 15-year senior unsecured notes (the “Notes”) • The Notes are expected to have a weighted average life of approximately 8.5 years and will bear
Slide 8: Investment Grade Credit Metrics Maintained
Investment Grade Credit Metrics Maintained • Pro Forma Debt / EBITDA (Before Horizon acquisition SG&A and Molasses Settlement) below long-term targeted level of “low 2x’s” • Approximately $345 million of unused capacity under $400 million revolving credit facility Pro Forma Capitalization as of 3/31
Slide 9: Summary Remarks
Summary Remarks Strategically and financially compelling transaction Reinforces Matson’s long-term commitment to Alaska Significantly enhances Matson Logistics’ platform and profitability, providing near to medium term EPS growth and broadening our service offering The Transaction is not expected to
Slide 10: Addendum – Non-GAAP Measures
Addendum – Non-GAAP Measures Matson reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and
Slide 11: Addendum — Non-GAAP Measures
Addendum — Non-GAAP Measures Matson reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and