Matson, Inc. · NYSE:MATX
Matson — Oppenheimer Industrial Growth Conference 2018
19 slides from Matson's conference presentation, May 8, 2018
Slide 1: Matson Oppenheimer Industrial Growth Conference May 8, 2018
Matson Oppenheimer Industrial Growth Conference May 8, 2018
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 today, May 8, 2018. We believe that our expectations and assumptions are reasonable. Actua
Slide 3: Matson: At-a-Glance
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 terminals LOGISTICS Top 10 integrated, asset-light logi
Slide 4: Matson Today: Connecting the Pacific
Matson Today: Connecting the Pacific Oppenheimer Industrial Growth Conference may 8, 2018 anchorage dutch harbor kdiak seattle Tacoma concord(HQ) Oakland corporate office salt lake city Chicago akron Philadelphia phoenix customer service center savannah Houston dallas la/long beach honolulu headquar
Slide 5: Investment Highlights
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 economics on China service Dedicated terminals with b
Slide 6: Market and Service Leader to Hawaii
Market and Service Leader to Hawaii Overview of Service 3.5 calls per week into Hawaii with inbounds from LA, OAK and SEA Operate a dedicated neighbor island barge service, which is a key service differentiator Key Westbound customer verticals: Food and beverage Retail merchandise Construction Matso
Slide 7: Hawaii Fleet Renewal Program
Hawaii Fleet Renewal Program Nearly $925 million to be invested in 4 new vessels to power the Hawaii tradelane for decades. Vessel Delivery Estimate Percent of Completion(1) Milestone Payments Remaining ($ in millions)(2) Useable Cargo Capacity TEUs Reefer Slots Autos Daniel K. Inouye 3Q ’18 91% $ 2
Slide 8: Financial Benefits of New Vessels
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. Magnitude and timing of benefits subject to chan
Slide 9: China Expedited Service
China Expedited Service Weekly service from Ningbo/Shanghai to Long Beach Uniquely focused on U.S. arrival day A premium service providing an alternative to deferred air freight and other ocean carriers 4-to-6 day service disadvantage to deferred air freight 5-to-10 day service advantage over other
Slide 10: Alaska Service
Alaska Service Twice weekly service to Anchorage, 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) Span Alaska an important driver of business Leverage industr
Slide 11: Guam Service
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 advantage and service reliability Fight for every piece of f
Slide 12: SSAT Joint Venture
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 Long Beach, Oakland, Seattle, and Tacoma Long Bea
Slide 13: Matson's Terminals Truck Turn Times
Matson’s Terminals Truck Turn Times (2017) Industry averages 1 – 2 hours Source: Management estimates. Guaranteed berths / cranes at dedicated terminals used by Matson(1) Helps to quick turn our vessels and maintain schedule Matson’s turn times are at least 50% lower than the industry average Consid
Slide 14: Matson Logistics
Matson Logistics Overview of Services Transportation Brokerage Domestic and international rail intermodal services Long-haul and regional highway trucking services Less-than-truckload and expedited freight services Less-than-Container Load (LCL) and Freight Forwarding Span Alaska Warehouse Over 1.5
Slide 15: Span Alaska Overview
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 shipment to Alaska Move freight through a networ
Slide 16: Span Alaska Overview (continued)
Span Alaska Overview (continued) LCL freight accounts for ~50% of the Alaska NB 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 Aub
Slide 17: Recent Organic Growth Initiatives
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 position • Leverages Honolulu “hub” Launched
Slide 18: fe) xe}
e x fe) xe} — 4 g Q = =z
Slide 19: 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 — Oppenheimer Industrial Growth Conference 2018 on 6ix