Matson, Inc. · NYSE:MATX
Matson — Investor Presentation (February 2018)
16 slides from Matson's investor presentation, Feb 13, 2018
Slide 1: Investor Presentation - February 2018
Investor Presentation-February 2018 M..AT.X. Maison. Investor Presentation 1 February 2018-Slide 1 NYSE.
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 information that is known to us as of February 13, 2018. We believe that our expectations and assumptions are reasonable. Actual
Slide 3: Matson: At a Glance
Matson: At a Glance • • A leading U.S. carrier in the Pacific Lifeline to economies of Hawaii, Alaska and Guam Niche, premium, expedited service from China to Southern California 35% ownership in SSAT that operates 7 West Coast terminals • Top 10 integrated, asset-light logistics services Freight fo
Slide 4: Matson Today: Connecting the Pacific
Matson Today: Connecting the Pacific 0 Salt lab City 0 Phoenix Cusr'"'"S'"'"Cmttr • Ebeye/ kwajalein 0 0Majuro 00 Pohnpel kosrae 0 Nauru Honiara Samoa 0 American Samoa 0 •.oFIJ I OAitutakl 0 Tahiti HAWAII Van 'uO 0 I I I 0 Rarotonga 0Niue ( ckland Nuju'alofa / U.S.FLAG FORliGN FLAG PARTNER CARRIER -
Slide 5: Investment Highlights
Investment Highlights • Strong market positions in attractive niche markets with multi-decade customer China service • Financial strength to invest in fleet renewal and equipment, pursue strategic opportunities (1) As of the quarter ended September 30, 2017. Investor Presentation | February 2018 – S
Slide 6: Market and Service Leader to Hawaii
Market and Service Leader to Hawaii • Matson is the leading carrier into Oahu and Neighbor Islands, providing “just-in-time” supply lifeline Matson’s 10-Ship Deployment – 5 weekly USWC departures • 10-ship fleet deployment offering most frequent and reliable service – Only containership service from
Slide 7: Hawaii Fleet Renewal Program
Hawaii Fleet Renewal Program Aloha 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 capable “Ka
Slide 8: Unique Expedited China Service (CLX)
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 competitive service advantage and premium rates – Matson’s service advantage
Slide 9: Guam & Micronesia Service
Guam & Micronesia Service • Guam is 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
Slide 10: Alaska Service
Alaska Service • Similarities with Hawaii market Matson’s 3-Ship Deployment – 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 2X Weekly – – 2X
Slide 11: SSAT Joint Venture
SSAT Joint Venture • Matson’s 35% interest in leading U.S. West Coast terminal operator Services • – Vessel stevedoring, terminal services, container equipment maintenance, chassis pools, on-dock rail Dedicated terminals for Matson’s service – • Controls cost and improves productivity – – Economies
Slide 12: 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 Industry Range – – Customer satisfaction Considered best in class • Wheeled operations – – – Immediate cargo availability Quick yard turns Own ch
Slide 13: Matson Logistics
Matson Logistics • A nationwide presence with high investment returns – – – – Leverage Matson and Span Alaska brands Asset-light businesses Scalable model with high ROIC Organic growth to complement integrated logistics solutions Consider disciplined acquisitions to expand service offering – • Freig
Slide 14: Addendum
Addendum M..AT.X. Maison. Investor Presentation 1 February 2018-Slide 14 NYSE.
Slide 15: Recent Industry Announcements
Recent Industry Announcements • August 17, 2017(1): TOTE Announces Plan to Establish a Hawaii Service − Working with Philly Shipyard for construction of four new vessels - new vessels will enter service in early 2020 and 2021 Securing space at Kapālama Container Terminal (KCT) a critical step in mak
Slide 16: Recent Industry Announcements (continued)
Recent Industry Announcements (continued) January 26, 2018(1): TOTE Update on Hawaii Plan • − TOTE announced that its plans to enter the Hawaii market are on hold as a result of its Phase 1 technical review of Piers 1 and 2 in Honolulu Harbor − TOTE conducted a preliminary study of the site’s infras