Positioned for Long-Term Shareholder Value J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 1
Presenters Alexander & Baldwin, Inc. Mr. Christopher J. Benjamin Senior Vice President, Chief Financial Officer and Treasurer 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, March 24, 2011. Actual results may differ materially, due to risks and uncertainties, such as those described on pages 17-26 of the Form 10-K in our 2010 annual report and our other subsequent filings with the SEC. Statements in this presentation are not guarantees of future performance. J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 2
Company Overview Transportation Real Estate Transportation Real Estate and Agribusiness J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 3
Company Overview As of or for the year ended December 31, 2010, except where noted Revenue 1 $1.6 Billion Operating Profit 1 $198 Million Assets $2.5 Billion 1 Includes discontinued operations Trading Statistics Transportation Real Estate Agribusiness Ticker Exchange ALEX NYSE 3-Month Average Volume 254,000 (as of 3/21/11) Market Capitalization $1.7B (based on closing price of $41.57 as of 3/21/11) Indices Dow Jones Composite, Dow Jones Transportation, S&P 400 MidCap, Russell 1000 J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 4
Operating Profit by Business Segment Includes Discontinued Operations Operating Profit ($ in Millions) 300 250 200 150 100 50 0-50 274.5 254.8 233.3 148.3 124.3 198.1 126.4 119.5 106.6 65.0 100.0 126.0 143.4 82.3 85.4 6.9 0.2-12.9-27.8 6.1 2006 2007 2008 2009 2010 Transportation Real Estate Agribusiness J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 5
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 12/31/10-45 properties in Hawaii and 7 Mainland states - 7.9 MM square feet - Geographic and asset class diversity - 2010 net operating income of $56 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) J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 6
Real Estate Strategy Maximize value from core holdings - Leverage knowledge, expertise to 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 Generate new value through new investments - Opportunistic and strategic - Hawaii-focused, primarily residential & commercial Leverage position as premiere real estate company J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 7
Agribusiness Strategy Highest and best use; long-term presence in agriculture Commodity sugar business challenging, though profitable at current price levels Bio-energy farm a possible 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 J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 8
Ocean Transportation Prominent transportation franchises with market leading positions 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 Two premium, niche China-Long Beach container services 46,500 containers (owned and leased as of 1/31/11) 105-acre Sand Island, Hawaii facility Prominent West Coast U.S. stevedoring joint venture Terminal operations in Long Beach, Oakland, Seattle J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 9
Inside the Supply Chain Matson Ocean Services Jones Act & International J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 10
Hawaii Service Competitive Advantages Largest Jones Act West Coast to Hawaii container and auto carrier 17 Jones Act vessels; average age active fleet of 18 years 50 40 30 20 10 Hawaii Container Volume (in Thousands) Dedicated terminal operations 0 Best service frequency to and from the U.S. Mainland Integrated neighbor island barge service Operating Priorities 30 20 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Hawaii Automobiles Volume (in Thousands) 3Q10 4Q10 Maintain quality service Fuel cost recovery 10 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 11
Guam Service Competitive Advantages 4,500 Guam Container Volume Lifeline to Guam Well-established market position Off-dock facility at Polaris Point provides customer convenience, reduces pier congestion 4,000 3,500 3,000 2,500 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Operating Priorities Maintain quality service Capture increased cargo movement due to U.S. military troop relocation from Okinawa Fuel cost recovery J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 12
China Service China-Long Beach Express (CLX1 & 2) Competitive Advantages Serving 5 of the largest China ports, including twice-weekly service from Shanghai Premium brand; excellent service reputation 25,000 20,000 15,000 10,000 China Container Volume Best in class transit times 5,000 Higher-rated goods: electronics, apparel 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Westbound and Eastbound head hauls for CLX1 Challenges Freight rate environment Fuel cost recovery J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 13
Ocean Transportation Strategy Hawaii - Continued focus on efficiency - Positioned to benefit from Hawaii economic recovery Guam - Capture opportunities from market expansion due to U.S. military buildup China - Ramp up of CLX2 - Increase China footprint J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 14
Logistics Services 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 J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 15
Quality assets - 17 owned Jones Act vessels; shoreside assets with low historical basis - Majority of historic lands on books at average basis below $150/acre - Robust, diverse pipeline of development projects - Diversified commercial income property portfolio Strong financial position - Debt to capitalization: 32 percent - Low long-term debt maturities: < $54M/year through 2015 - Available borrowing capacity: $358M Strong intangibles - Powerful brands - Deep market knowledge - Strong investment discipline ALEX Competitive Strengths As of December 31, 2010 J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 16
Business Outlook Transportation - Ramp up of CLX2 - Capturing growth opportunities in Guam Real Estate - Continue entitlement, permitting and construction of various pipeline projects - Pursuit of new Hawaii development opportunities Agribusiness - Continued focus on operating improvements - Evaluation of renewable energy and other strategic options Strong operating momentum; monitoring external headwinds - Fuel oil prices - China freight rates - Recent events in Japan J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 17
Positioned for Long-Term Shareholder Value J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 J.P. Morgan Aviation, Transportation & Defense Conference March 24, 2011 18