Matson, Inc. · NYSE:MATX
Matson — Wolfe Research Global Transportation & Industrials Conference (May 2021)
16 slides from Matson's conference presentation, May 27, 2021
Slide 1: Investor Presentation
Investor Presentation May 27, 2021 1 Investor Presentation │May 27, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements made during this presentation that set forth expectations, predictions, projections or are about future events are based on facts and situations that are known to us as of May 27, 2021. We believe that our expectations and assumptions are reasonable. Actual resu
Slide 3: Matson: At-a-Glance
Matson: At-a-Glance OCEAN TRANSPORTATION LOGISTICS • A leading U.S. carrier in the Pacific • Top 10 integrated, asset-light logistics services • Lifeline to economies of Hawaii, Alaska, Guam and other • Freight forwarding, rail intermodal, highway brokerage, Pacific islands warehousing, and supply c
Slide 4: Matson Today: Connecting the Pacific
Matson Today: Connecting the Pacific 4 Investor Presentation │May 27, 2021
Slide 5: Investment Highlights
Investment Highlights • Providing critical supply lifelines to economies throughout the Pacific Unique Network • Strong market positions in attractive niche markets with multi-decade customer relationships Connecting the Pacific • Dual head-haul economics on China-to-Long Beach Express (CLX) service
Slide 6: Hawaii Service
Hawaii Service Overview of Service Market Overview • 5 U.S. West Coast departures and 3 • Competitors: arrivals in Honolulu per week – Pasha • Dedicated neighbor island barge – Barges service – Air freight Current 9-ship deployment Matson’s Focus • Maintain best-in-class on-time arrival and cargo av
Slide 7: China Service
China Service Overview of Service Market Overview • 2 weekly services from Ningbo/Shanghai to Long • Competitors: Beach – Other transpacific carriers – CLX: started in 2005 – Air freight carriers – CLX+: started in May 2020 – Feeder services from other Asian port origins • CLX and CLX+ are premium s
Slide 8: CLX+ and the Alaska-Asia Express
CLX+ and the Alaska-Asia Express On August 26, 2020, Matson announced the introduction of the AAX as a backhaul service on the CLX+ • Important route for Alaska seafood exports to Asia • Connecting service from Anchorage and Kodiak via Matson’s domestic Alaska service 8 Investor Presentation │May 27
Slide 9: Alaska Service
Alaska Service Overview of Service Current 3-Ship Deployment • Twice weekly service to Anchorage and Kodiak • Weekly service into Dutch Harbor • Matson is the only U.S. containership operator serving Kodiak and Dutch Harbor Market Overview • Competitors: TOTE, barges, air freight and OTR trucking •
Slide 10: Guam Service
Guam Service Overview of Service Market Overview • Weekly service to Guam as part of CLX • Competitors: service – APL (U.S. flagged service) • 3-to-5 day ocean transit advantage from U.S. • Trans-ships in Yokohama to Guam via a West Coast 2-ship feeder service – International carriers with Asia dire
Slide 11: SSAT Joint Venture
SSAT Joint Venture Overview SSAT JV Equity Income (Loss) • Matson owns a 35% interest in SSA Terminals, LLC (SSAT), the leading U.S. $40 West Coast terminal operator $35 – SSAT currently provides terminal and $30 stevedoring services to carriers at 7 $25 $ in millions terminal facilities $20 Port Te
Slide 12: Matson Logistics
Matson Logistics Overview of Services Operating Income and Margin $45 8% • LCL consolidation and freight forwarding Freight primarily to the Alaska market through $40 Operating Income ($ in millions) Forwarding 7% Span Alaska Operating Income Margin $35 6% $30 • Domestic and international rail inter
Slide 13: Span Alaska Overview
Span Alaska Overview • Receives LCL freight in Auburn, WA for consolidation and shipment to Alaska • Network of terminals enables transport of freight to all major population centers in AK • Matson’s largest northbound freight customer 13 Investor Presentation │May 27, 2021
Slide 14: Strong Cash Flow Generation and Balance Sheet
Strong Cash Flow Generation and Balance Sheet Cash Flow Generation Leverage = Total Debt(1) / EBITDA(2) $ 600 120% 4.00 x 3.50 x $ 500 100% 3.00 x $ 400 80% $ in millions 2.50 x $ 300 60% 2.00 x 1.50 x $ 200 40% 1.00 x $ 100 20% 0.50 x $0 0% 0.00 x 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2
Slide 15: Appendix
Appendix 15 Investor Presentation │May 27, 2021
Slide 16: Appendix – Non-GAAP Measures
Appendix – 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
Matson — Wolfe Research Global Transportation & Industrials Conference (May 2021) on 6ix