Positioned for Long-Term Shareholder Value Stephens Fall Investment Conference November 17, 2010

Transcription

1 Positioned for Long-Term Shareholder Value Stephens Fall Investment Conference November 17, 2010 Stephens Fall Investment Conference November 17,

2 Presenters Alexander & Baldwin, Inc. Mr. Stanley M. Kuriyama President and Chief Executive Officer Matson Navigation Company Mr. Matthew J. Cox President Statements in this presentation that set forth expectations or predictions are based on facts and situations that are known to us as of today, November 17, Actual results may differ materially, due to risks and uncertainties, such as those described on pages of the Form 10-K in our 2009 annual report and our other subsequent filings with the SEC. Statements in this presentation are not guarantees of future performance. Stephens Fall Investment Conference November 17,

3 Company Overview Transportation Real Estate Transportation Real Estate and Agribusiness Stephens Fall Investment Conference November 17,

4 Who We Are Overview Premium transportation franchise Leading shipper of goods to Hawaii and Guam Premium, expedited service between 5 China ports and Long Beach 9th largest U.S. freight brokerage 4th largest private landowner in Hawaii Largest agricultural producer in Hawaii Stephens Fall Investment Conference November 17,

5 Company Overview As of or for the 12 months ended September 30, 2010, except where noted Revenue 1 $1.7 Billion Operating Profit 1 $200 Million Assets $2.5 Billion 1 Includes discontinued operations Trading Statistics Transportation Real Estate Agribusiness Ticker Exchange ALEX NYSE 1-Month Average Volume 213,840 (as of 11/11/10) Market Capitalization 1.5B (based on closing price of $36.46 as of 11/11/10) Indices Dow Jones Composite, Dow Jones Transportation, S&P 400 MidCap, Russell 1000 Stephens Fall Investment Conference November 17,

6 Operating Profit by Business Segment Includes Discontinued Operations Operating Profit ($ in Millions) YTD 2010 Transportation Real Estate Agribusiness Stephens Fall Investment Conference November 17,

7 Tourism Hawaii Economic Indicators Improving 3Q10 vs. 3Q09 - Visitor arrivals: 10.0 percent - Visitor expenditures: 25.3 percent - Hotel occupancy: 8.0 percent - Air seat capacity: 7.1 percent Hawaii residential market - Statewide resale: 5.6 percent - Oahu single family median prices: 6.0 percent Unemployment rate percent (Sept. 2010) vs. 7.0 percent (Sept. 2009) Construction remains weak - Private construction permits: (1.2) percent Sources: Hawaii Department of Business Economic Development and Tourism Air Capacity Outlook, Monthly Economic Indicators; Hospitality Advisors, Hawaii Hotel Industry Snapshot; Title Guaranty Report Sept. 2010; Data provided for informational purposes only; no endorsement implied. Stephens Fall Investment Conference November 17,

8 Prominent transportation franchises with market leading positions Who We Are Transportation Founded in 1882 Among leading U.S. domestic ocean carriers Principal carrier of containerized freight and automobiles between the U.S. West Coast, Hawaii and the mid-pacific Premium, niche China-Long Beach container service 42,000 containers (owned and leased) 105-acre Sand Island, Hawaii facility Prominent West Coast U.S. stevedoring joint venture Terminal operations in Long Beach, Oakland, Seattle Stephens Fall Investment Conference November 17,

9 Inside the Supply Chain Matson Ocean Services Jones Act & International Stephens Fall Investment Conference November 17,

10 Hawaii Service Competitive Advantages Largest Jones Act West Coast to Hawaii container and auto carrier Hawaii Container Volume (in Thousands) Lifeline to Hawaii since Jones Act vessels with an average age of 23 years 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Dedicated terminal operations acre Sand Island facility - SSAT joint venture Best service frequency to and from the U.S. Mainland Hawaii Automobiles Volume (in Thousands) 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Stephens Fall Investment Conference November 17,

11 Guam Service Operating Priorities 4,500 Guam Container Volume Maintain quality service 4,000 Preparation for increased military cargo movement - Record of Decision on troop movement signed 3,500 3,000 2,500 - Matson Guam Project Office formed 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 - Port infrastructure improvements - Three refurbished gantry cranes installed in Port given $50 million for improvements by DOD - Polaris Point off-dock facility Stephens Fall Investment Conference November 17,

12 China Service China-Long Beach Express (CLX) Competitive Advantages 16,000 China Container Volume 10/11-day transit from Shanghai 12,000 Next-day cargo availability - CLX1 Sunday arrival, Monday availability - CLX2 Wednesday arrival, Thursday availability 8,000 4,000 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 - All cargo made available on wheels at an off dock location for easy 24/7 pickup Primary goods: electronics, apparel Westbound and Eastbound head hauls for CLX1 Stephens Fall Investment Conference November 17,

13 China Service China-Long Beach Express 2 (CLX2) Financial Performance and Outlook On track with previous start-up loss estimates of $10-15 million in the second half of 2010, primarily in 4Q10 Expect service to be profitable in 2011 Operating Highlights Leveraging experience, customer relationships, infrastructure Expands premium service to South China Launch timing on track First sail mid-september; full-deployment in October Initial sailings performed well Offices opened in Hong Kong and Shenzhen All vessels chartered Majority of leased and purchased containers received Strong customer interest levels Stephens Fall Investment Conference November 17,

14 Ocean Transportation Strategy Hawaii - Continued focus on efficiency - Positioned to benefit from Hawaii economic recovery Guam - Preparing for market expansion from military buildup China - Increase China footprint - Expand logistics services Other - Opportunistic growth in Jones Act trades - Seek partnership opportunities to serve new / underserved markets Stephens Fall Investment Conference November 17,

15 Who We Are Transportation Leveraging Matson brand and customer relationships through logistics services 9 th largest U.S. freight brokerage National rail, highway and expedited services Emerging warehousing/distribution services segment Incremental, organic growth Strategy Expand warehousing and distribution channel Unify disparate brands; leverage Matson brand Stephens Fall Investment Conference November 17,

16 Inside the Supply Chain Matson Integrated Logistics Domestic Port to Door Stephens Fall Investment Conference November 17,

17 Real Estate and Agribusiness Premier, regional real estate company with extensive entitlement and development expertise, significant landholdings and diversified commercial property earnings base 4 th largest private landholder in Hawaii (88,000 acres) Developer of residential, resort residential and commercial projects throughout Hawaii Commercial income property portfolio (as of 11/11/10) - 43 properties MM square feet - Geographic and asset class diversity NOI of $66 million HC&S: 35,000-acre Maui sugar plantation Kauai Coffee: 3,000-acre plantation Significant renewable energy provider on Maui (hydro and bagasse) and Kauai (hydro) Stephens Fall Investment Conference November 17,

18 Core Hawaii Landholdings Island of Maui as of December 31, 2009 Kahului Kaanapali Paia Pukalani Conservation 15,900 acres Kihei Hana Agriculture Urban/Entitled 51,500 acres 600 acres Wailea Stephens Fall Investment Conference November 17,

19 Core Hawaii Landholdings Island of Kauai as of December 31, 2009 Haena Hanalei Wainiha Kapaa Wailua Waimea Hanapepe Lihue Nawiliwili Bay Conservation Agriculture Urban/Entitled 13,300 acres 7,100 acres 1,100 acres* Kalaheo Koloa Poipu * Includes 1,000 acres at Kukui ula JV Stephens Fall Investment Conference November 17,

20 Real Estate Strategy Maximize value from core holdings - Create value through the entire development spectrum - Monetize value through leases & sales Maintain a diversified portfolio of income properties - Generate value through property & asset management - Realize value through 1031 program - Stable, reliable source of earnings Stephens Fall Investment Conference November 17,

21 Real Estate Strategy Generate new value through new investments Opportunistic and strategic Hawaii-focused Primarily residential & commercial $800 million since 1999 Premiere real estate company Superior personnel, network & market knowledge Financial strength Investment discipline Stephens Fall Investment Conference November 17,

22 Agribusiness Strategy Highest and best use; long-term presence in agriculture Commodity sugar business challenging Bio-energy farm the likely future Hawaii extremely dependent on foreign oil Only farm of scale Existing infrastructure & employee base Numerous initiatives underway, including $12M in federal grants Current improvement in pricing & production provide a bridge Stephens Fall Investment Conference November 17,

23 Quality assets - Majority of lands on books at historic average basis below $150/acre - 17 owned Jones Act vessels, shoreside assets with low historical basis - Diversified commercial income property portfolio Strong financial position - Debt to capitalization: 31 percent - Low debt maturities: < $40M/year through Available borrowing capacity: $375M Strong intangibles - Powerful brands - Highly capable, experienced management team - Strong investment discipline ALEX Competitive Strengths As of September 30, 2010, except where noted Stephens Fall Investment Conference November 17,

24 Hawaii economic recovery underway Transportation - Lowered cost structure - Guam military buildup - Expanding in China Real Estate and Agribusiness - Continued planning & permitting - Continued new investments - Development pipeline - Conversion of sugar plantation to energy farm Poised for Future Growth Stephens Fall Investment Conference November 17,

25 Positioned for Long-Term Shareholder Value Stephens Fall Investment Conference November 17, 2010 Stephens Fall Investment Conference November 17,