Matson, Inc. · NYSE:MATX
Matson — Investor Presentation (November 2018)
19 slides from Matson's investor presentation, Nov 8, 2018
Slide 1: Investor Presentation November 2018
1 Investor Presentation │November 2018 Investor Presentation November 2018
Slide 2: Forward-Looking Statements
2 Investor Presentation │November 2018 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 November 6 to 8, 2018. We believe that our expectat
Slide 3: Matson: At-a-Glance
3 Investor Presentation │November 2018 Matson: At-a-Glance OCEAN TRANSPORTATION • 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 terminal
Slide 4: Matson Today: Connecting the Pacific
4 Investor Presentation │November 2018 Matson Today: Connecting the Pacific
Slide 5: Investment Highlights
5 Investor Presentation │November 2018 Investment Highlights Unique Network Connecting the Pacific • Providing critical supply lifelines to island economies throughout the Pacific • Strong market positions in attractive niche markets with multi-decade customer relationships • Dual head-haul economic
Slide 6: Market and Service Leader to Hawaii
6 Investor Presentation │November 2018 Market and Service Leader to Hawaii Overview of Service • 3.5 calls per week into Hawaii with inbounds from Long Beach, Oakland and Seattle • Operate a dedicated neighbor island barge service, which is a key service differentiator • Key westbound customer verti
Slide 7: Hawaii Fleet Renewal Program
7 Investor Presentation │November 2018 Hawaii Fleet Renewal Program Nearly $925 million to be invested in 4 new vessels to support the Hawaii tradelane for decades. Vessel Delivery Estimate Percent of Completion(1) Useable Cargo Capacity TEUs Reefer Slots Autos Daniel K. Inouye Delivered 100% 3,220
Slide 8: Financial Benefits of New Vessels
8 Investor Presentation │November 2018 Financial Benefits of New Vessels For the current 10-ship deployment, expect the annual financial benefits of the new vessels to be approximately $28 to $31 million with almost all of the benefits beginning after the arrival of the 3rd vessel in 4Q19. (1) Magni
Slide 9: China Expedited Service
9 Investor Presentation │November 2018 China Expedited Service • Weekly service from Ningbo/Shanghai to Long Beach – Uniquely focused on U.S. Monday morning cargo availability • A premium service providing an alternative to deferred air freight and other ocean carriers – 4-to-6 day service disadvant
Slide 10: Alaska Service
10 Investor Presentation │November 2018 Alaska Service • 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 • Key customer segments: – Food and beverage (NB) – Retail (NB) – Seafood (SB) • S
Slide 11: Guam Service
11 Investor Presentation │November 2018 Guam Service • Weekly service to Guam as part of CLX service – Significant transit advantage • Provide feeder vessel services from Guam to the islands of Micronesia • Key customer segments: – Military – Food and retail – Household goods • Leverage transit adva
Slide 12: SSAT Joint Venture
12 Investor Presentation │November 2018 SSAT Joint Venture • Matson owns a 35% interest in SSA Terminals, LLC (SSAT), the leading U.S. West Coast terminal operator – SSAT provides terminal and stevedoring services to carriers at 7 terminal facilities • Services provided to Matson at terminals in Lon
Slide 13: Matson's Terminals Truck Turn Times
13 Investor Presentation │November 2018 Matson’s Terminals Truck Turn Times (2017) 0 5 10 15 20 25 30 LGB OAK SEA TAC HON Truck Processing Time (minutes) Industry averages 1 – 2 hours Source: Management estimates. • Guaranteed berths / cranes at dedicated terminals used by Matson(1) – Helps to quick
Slide 14: Matson Logistics
14 Investor Presentation │November 2018 Matson Logistics Overview of Services 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% $0 $5 $10 $15 $20 $25 2015 2016 2017 2018 YTD Operating Margin Operating Income ($ in millions) Operating Income Operating Margin • Transportation Brokerage – Domestic and international r
Slide 15: Span Alaska Overview
15 Investor Presentation │November 2018 Span Alaska Overview The market leader in Less-than-Container Load freight consolidation and forwarding services to the Alaska market. • Asset-light logistics business • Aggregates Less-than-Container Load (LCL) freight in Auburn, WA for consolidation and ship
Slide 16: Span Alaska Overview (continued)
16 Investor Presentation │November 2018 Span Alaska Overview (continued) • Diversified end market: Wholesale Distribution, Retail & Household Goods, Construction & Building Materials, Food & Beverage, Government, Oil, Vehicles • LCL Freight – 80% of goods transported to the Auburn terminal by custom
Slide 17: Recent Organic Growth Initiatives
17 Investor Presentation │November 2018 Recent Organic Growth Initiatives Launched New Service to Okinawa, Japan (September 2017) • Leverages Matson’s U.S.-flagged network from U.S. West Coast through Honolulu and Guam Kwajalein Service • Expanded U.S.-flagged service to Kwajalein to strengthen posi
Slide 18: Appendix
18 Investor Presentation │November 2018 Appendix
Slide 19: Appendix – Non-GAAP Measures
19 Investor Presentation │November 2018 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 inves