Matson, Inc. · NYSE:MATX
Matson — Investor Presentation (November 2020)
18 slides from Matson's investor presentation, Nov 10, 2020
Slide 1: Investor Presentation November 11, 2020
1 Investor Presentation │November 11, 2020 Investor Presentation November 11, 2020
Slide 2: Forward-Looking Statements
2 Investor Presentation │November 11, 2020 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 11, 2020. We believe that our expectat
Slide 3: Matson: At-a-Glance
3 Investor Presentation │November 11, 2020 Matson: At-a-Glance OCEAN TRANSPORTATION • A leading U.S. carrier in the Pacific • Lifeline to economies of Hawaii, Alaska, Guam and other Pacific islands • Niche, premium, expedited services from China to Southern California • 35% ownership in SSAT that op
Slide 4: Matson Today: Connecting the Pacific
4 Investor Presentation │November 11, 2020 Matson Today: Connecting the Pacific
Slide 5: Investment Highlights
5 Investor Presentation │November 11, 2020 Investment Highlights Unique Network Connecting the Pacific • Providing critical supply lifelines to economies throughout the Pacific • Strong market positions in attractive niche markets with multi-decade customer relationships • Dual head-haul economics o
Slide 6: Hawaii Service
6 Investor Presentation │November 11, 2020 Hawaii Service • 5 U.S. West Coast departures and 3 arrivals in Honolulu per week • Dedicated neighbor island barge service Overview of Service Matson’s Focus • Maintain best-in-class on-time arrival and cargo availability • Dedicated terminals and fully- i
Slide 7: China Service
7 Investor Presentation │November 11, 2020 China Service • 2 weekly services from Ningbo/Shanghai to Long Beach – CLX: started in 2005 – CLX+: started in May 2020 – Feeder services from other Asian port origins • CLX and CLX+ are premium services providing an alternative to deferred air freight and
Slide 8: CLX+ Service
8 Investor Presentation │November 11, 2020 CLX+ Service Matson is confident it can make the CLX+ service permanent. • 15-year track record of operating the industry leading expedited CLX service • Introduction of Alaska-to-Asia Express (AAX) helps lower the long-term breakeven economics • Demand and
Slide 9: CLX+ and the Alaska-Asia Express
9 Investor Presentation │November 11, 2020 CLX+ and the Alaska-Asia Express On August 26th, Matson announced the introduction of the AAX as a backhaul service on the CLX+ • Important route for Alaska seafood exports to Asia • Connecting service from Anchorage and Kodiak via Matson’s domestic Alaska
Slide 10: Alaska Service
10 Investor Presentation │November 11, 2020 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 Overview of Service Matson’s Focus Current 3-Ship Deployment • Maintain excell
Slide 11: Guam Service
11 Investor Presentation │November 11, 2020 Guam Service • Weekly service to Guam as part of CLX service • 3-to-5 day ocean transit advantage from U.S. West Coast Overview of Service Matson’s Focus • Maintain superior service and on-time performance • Fight for every piece of freight Market Overview
Slide 12: SSAT Joint Venture
12 Investor Presentation │November 11, 2020 SSAT Joint Venture • Matson owns a 35% interest in SSA Terminals, LLC (SSAT), the leading U.S. West Coast terminal operator – SSAT currently provides terminal and stevedoring services to carriers at 7 terminal facilities Overview SSAT is the best operator
Slide 13: Matson Logistics
13 Investor Presentation │November 11, 2020 0% 1% 2% 3% 4% 5% 6% 7% 8% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 2015 2016 2017 2018 2019 LTM Operating Income Margin Operating Income ($ in millions) Operating Income Operating Income Margin Matson Logistics Note: Acquired Span Alaska in 3Q 2016. (As of 9
Slide 14: Span Alaska Overview
14 Investor Presentation │November 11, 2020 Span Alaska Overview • Receives LCL freight in Auburn, WA for consolidation and shipment to Alaska • Network of terminals enables transport of freight to all major population centers in AK • Matson’s largest northbound freight customer
Slide 15: Strong Cash Flow Generation and Balance Sheet
15 Investor Presentation │November 11, 2020 Strong Cash Flow Generation and Balance Sheet Cash Flow Generation Leverage = Total Debt(1) / EBITDA(2) • Weighted average cost of debt at end of 3Q20 was approximately 2.64% • Issued two Title XI transactions in 2Q20 • Target “low 2xs” leverage • Delivery
Slide 16: Capital Allocation
16 Investor Presentation │November 11, 2020 Capital Allocation • Fund maintenance capital expenditures – Investing approximately $30 million in new equipment to support growth of China service and AAX to maximize opportunities – In 2021, expect to be higher than maintenance level of $50 to $60 milli
Slide 17: Appendix
17 Investor Presentation │November 11, 2020 Appendix
Slide 18: Appendix – Non-GAAP Measures
18 Investor Presentation │November 11, 2020 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 i