Matson, Inc. · NYSE:MATX
Matson — Investor Presentation (November 2017)
19 slides from Matson's investor presentation, Nov 7, 2017
Slide 1: Investor Presentation – November 2017
Investor Presentation – November 2017
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 November 7, 2017. We believe that our expectations and assumptions are reasonable. Actual
Slide 3: Matson Today: Connecting the Pacific
Matson Today: Connecting the Pacific
Slide 4: 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 competitive advantage and premium rates for China service Dedicated Hawaii N
Slide 5: Leading carrier into Oahu and Neighbor Islands
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 Ma
Slide 6: 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 7: Illustrative Fleet Renewal Benefits 2020 vs. 2017 Comparison
Upon completion of new vessel construction program: Expect annual cash operating efficiencies of approximately $40-45 million Operating two fewer vessels (9 ship deployment vs. 11 ships deployed today) Lower repair & maintenance, port costs, auto/rolling stock efficiencies, consumables, etc. Expect
Slide 8: Honolulu Harbor Terminal Recent Announcements
Honolulu Harbor Terminal Recent Announcements State of Hawaii confirmed previously agreed upon KCT plan Matson will have a larger operation at Sand Island of ~130 contiguous acres Pasha operates at capacity at Piers 1, 2 and 51A today No available capacity for which TOTE could operate on an interim
Slide 9: Recent Industry Announcements
Recent Industry Announcements August 17, 2017: TOTE Announces Plan to Establish a Hawaii Service(1) 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 making
Slide 10: 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 results from several factors, including indus
Slide 11: Guam & Micronesia Service
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 12: 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 13: SSAT Joint Venture Terminals
Matson’s 35% interest in leading U.S. West Coast terminal operator Terminals remain dedicated to Matson Services Vessel stevedoring, terminal services, container equipment maintenance, chassis pools, on-dock rail Controls cost and improves productivity Economies of scale Convert fixed cost to variab
Slide 14: 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 15: Matson Logistics
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 16: Span Alaska’s Core Services
Span Alaska’s Core Services LCL freight accounts for ~50% of the Alaska Northbound ocean freight market Diversified end market: Wholesale Distribution, Retail & Household Goods, Construction & Building Materials, Food & Beverage, Government, Oil, Vehicles LCL FREIGHT 80% of goods transported to the
Slide 17: 2017 Outlook (as of November 2, 2017)
2017 Outlook (as of November 2, 2017) Ocean Transportation operating income for 2017 expected to be lower than the $142.7 million achieved in 2016 Continue to expect Logistics operating income for full year 2017 to be approximately $20 million Expect depreciation and amortization expense to be appro
Slide 18: Addendum
Addendum
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