Matson, Inc. · NYSE:MATX
Matson — Investor Presentation (February 2017)
21 slides from Matson's investor presentation, Feb 14, 2017
Slide 1: Forward Looking Statements
Forward Looking Statements We are in a quiet period with respect to our fourth quarter and full year 2016 results. As a result, we will not be commenting on nor will we be responding to questions regarding results for those periods during this presentation. Statements made during this presentation t
Slide 2: Matson Today: Connecting the Pacific
Matson Today: Connecting the Pacific
Slide 3: Investment Highlights
Investment Highlights Leveraging the Matson brand and network into growth opportunities Well maintained fleet with leading on-time vessel arrivals and dedicated reserve vessels Fastest transit and cargo availability creates 5 to 10 day advantage and premium rates for China service Dedicated Hawaii N
Slide 4: Market and Service Leader to Hawaii
Matson is the leading carrier into Oahu and Neighbor Islands, providing “just-in-time” supply lifeline 5 weekly USWC departures 11-ship fleet deployment offering most frequent and reliable service Only containership service from Pacific Northwest and only direct containership service from Oakland Co
Slide 5: Hawaii Fleet Renewal Program
Hawaii Fleet Renewal Program Aloha Class Kanaloa Class November 2013, ordered two 3600 TEU dual fuel, LNG capable “Aloha Class” containerships from Philly Shipyard Delivery 3Q-18 and 1Q-19 Average contract price $209 million per vessel August 2016, ordered two 3500 TEU platform, dual fuel, LNG capab
Slide 6: Matson's Hawaii Fleet – Pre and Post Renewal
Matson’s Hawaii Fleet – Pre and Post Renewal MATSON'S HAWAII FLEET Today 2019 (Post delivery of Aloha Class) 2020 (Post delivery of Kanaloa Class) # of Diesel Powered Vessels 8 8 5 # of Dual-fuel Capable Vessels 0 2 4 # of Steamships 3 0 0 # of Vessels Deployed 11 10 9 Total Capacity (TEU) Deployed
Slide 7: Unique Expedited China Service (CLX)
Utilization of Jones Act ships in round trip dual head-haul revenue model Weekly 5 ship string connecting 2 ports in China to LA / Long Beach Matson’s expedited service results in 5 to 10 day competitive advantage and premium rates Attracts high value, time sensitive cargo Unique Expedited China Ser
Slide 8: Guam a Critical Link in Matson's Network Configuration
Guam a Critical Link in Matson’s Network Configuration Connections from Oakland and Pacific Northwest to Guam via Honolulu Approximately 75% of Guam cargo is sourced from the U.S. On 8/29/15, the Department of the Navy signed the Record of Decision for relocating U.S. Marine Corps forces to Guam App
Slide 9: Alaska Service
Similarities with Hawaii Market Remote, non-contiguous economy dependent on reliable container service as part of vital supply lifeline A market that values premium service Loyal customer base; ~80% overlap with Matson’s Hawaii customers Long-term Stable Revenue Profile Northbound volume represents
Slide 10: SSAT Joint Venture Terminals
Matson’s 35% interest in leading U.S. West Coast terminal operator Contributed assets and terminal leases to JV in 1999 Terminals remain dedicated to Matson Services Vessel stevedoring, terminal services, container equipment maintenance, chassis pools, on-dock Rail Reduced Matson’s capital investmen
Slide 11: Strategic Benefits of Dedicated Terminals
Strategic Benefits of Dedicated Terminals Guaranteed Berth/Cranes Work on arrival Quick turn of vessel Maintain vessel schedule Fast Truck Turns Customer satisfaction Considered best in class Wheeled Operations Immediate cargo availability Quick yard turns Own chassis Late Freight Receiving Customer
Slide 12: Matson Logistics: A National Network of Integrated Services
Matson Logistics A National Network of Integrated Services Leverages Matson brand Scalable model with high ROIC Improving results Acquired Span Alaska – the market leader in Less-than-Container Load (“LCL”) freight consolidation and forwarding services to the Alaska market Warehouse operating improv
Slide 13: 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 14: Span Alaska's Core Services
Span Alaska’s Core Services LCL FREIGHT 80% of goods transported to the Auburn terminal by customer-owned vehicles Handles general cargo, keep-from-freezing, freeze & chill, and hazardous material handling for LCL shipments TRUCK SERVICES Complements core LCL services Drayage services to/from the Po
Slide 15: Matson's Strategic Acquisition Framework
Matson’s Strategic Acquisition Framework Matson seeks to invest in niche businesses that: Have strong market positions Provide value-added services Demand high customer service differentiation Complement Matson’s core businesses and allow for geographic and/or key product offering expansion Generate
Slide 16: Liquidity and Debt Levels
Liquidity and Debt Levels As of September 30, 2016 – Total debt of $812.4 million, Net debt of $685.1 million Net debt to LTM EBITDA of 2.3x On July 18, 2016, entered into a commitment letter to issue $200 million of 15-year senior unsecured notes; closed private placement on September 14, 2016 Weig
Slide 17: Cash Generation and Uses of Cash
Cash Generation and Uses of Cash Does not include $1.2 million in other uses of cash Net of cash acquired (2) (1)
Slide 18: Cash Generation and Uses of Cash
Cash Generation and Uses of Cash Sources and Uses of Cash") Last Twelve Months ended September 30, 2016 (in $ millions) 330.9 1047 99.2 $200 173.8 $150 60.1 Cash Flow From Net Borrowings Span Alaska Net CCF Maintenance New Vessel Dividends Share ‘Operations ‘Acquisition ® Deposits Capex Capex Repurc
Slide 19: 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 20: Addendum – Non-GAAP Measures
Addendum – Non-GAAP Measures (1) EBITDA is defined as the sum of net income, less income or loss from discontinued operations, plus income tax expense, interest expense and depreciation and amortization (including deferred dry - docking amortization). EBITDA should not b e considered as an alternati
Slide 21: Addendum — Non-GAAP Measures
Addendum — Non-GAAP Measures EBITDA RECONCILIATIO! ‘Three Months Ended September 30, Last Twelve in milions) 2016 2015, Change _ Months Net Income S250 5S 415 S (165) S877 ‘Add: Income tax expense 15.2 2356 (04) 528 Add: Interest expense 60 47 13 23 Add: Depreciation and amortization 24.0 233 07 95.