meeting material-gap 5-13-2010

Reliability. Flexibility. Agility. Speed. www.matson.com 1

Logistics Solutions

Overview for

Gap, Inc.


The Value Proposition

Matson Integrated Logistics is a leading provider of multimodal transportation and distribution services. Our hallmarks include award-winning customer service, innovative solutions, and financial stability. Our people, processes, and systems work together to deliver superior performance and value to our customers every day.

The Matson Network The Matson Network


Company Overview

Alexander & Baldwin, Inc. is a diversified corporation with operations spanning the U.S. and Pacific Rim. Its principal businesses are:

Property Development & Management

Ocean Transportation Food Products: Sugar

and Coffee

$1.5B revenue FY2009

Founded in 1870 and incorporated in 1900, Alexander & Baldwin's corporate headquarters are located in Honolulu, Hawaii. Its common stock is traded on the NYSE: ALEX

®

AMERICA’S

MOST ADMIRED COMPANIES 2006


National Coordination,Regional Operations, Local Representation

A National Network to Provide CustomizedPrograms and Services

Portland

SF / Oakland

Reno

Visalia

Los Angeles

Seattle

Savannah

Salt Lake City

Atlanta

Houston

Dallas

ColumbusIndianapolis

West Bend

Chicago

Jacksonville

PhiladelphiaAkron

Birmingham

Logistics Sales

International Intermodal Sales

Warehousing & Distribution

Customer Service Center


Integrated Services

Highway TL and LTL

Eastbound China Express Service

Warehousing & Distribution

Domestic & InternationalIntermodal

Cross-Dock Services Store Door


Integrated Solutions

China Eastbound Express service from Shanghai, Ningbo, and Xiamen

Domestic and international intermodal services serving a broad spectrum of customers and industries

Standard and truck-competitive expedited intermodal service 53’ equipment for high-cube freight; 40’ cost-efficient service for dense

freight Centrally managed for maximum efficiency

Long-haul and regional highway services Full truckload: Dry van & temperature-controlled LTL, including LTL consolidation and regional delivery Store-door and home delivery

Matson Global Distribution Services West Coast & East Coast transloading, warehousing, cross-dock Contracted dedicated services or seasonal capacity Value-added services: Store-ready displays and custom packs


Vendor Consolidations

Multiple vendor pick ups consolidated to a single TL Better efficiency than multiple LTL shipments Less handling = less OS&D Less traffic into the retail DC Opportunity to decrease cost and improve transit

Matson Truckload

RETAIL

DC

Vendor

Vendor

Vendor

Vendor

MATSON

MATSON


Award-Winning Service

Regional service centers linked by uniform processes and systems

Customized logistics solutions to meet specific needs

Data and metrics to measure and analyze results

Full EDI connectivity; customer portal for freight visibility

Superior service achieved by a team of resources assigned to each customer

Emphasis on Efficient processes Effective communication Consistent execution


Benefits

FlexibleSolutions to

MeetChanging

Needs

IntegratedTransportation

andW arehousing

Single Pointof Contact

TechnologyDriven

Processes

DedicatedService T eam

Investing forthe Future

IndustryKnowledge

andLeadership

CustomerSatisfaction

Motor, Rail,Ocean and Air

Options

THE SMARTEST DISTANCE BETWEEN TWO POINTS www.matson.com 10

HIGHWAY

SERVICESInformation Package for

Gap, Inc.


The Value Proposition

Matson Integrated Logistics is a leading provider of multimodal transportation services and distribution capabilities.

Our hallmarks include award-winning customer service, innovative solutions, and financial stability.

Our people, processes, and systems work together to deliver superior performance and value to our customers every day.


Company Overview

Alexander & Baldwin, Inc. is a diversified corporation with operations spanning the U.S. and Pacific Rim. Its principal businesses are:

Property Development & Management

Ocean Transportation Food Products: Sugar

and Coffee

$1.8B revenue FY2008

Founded in 1870 and incorporated in 1900, Alexander & Baldwin's corporate headquarters are located in Honolulu, Hawaii. Its common stock is traded on the NYSE: ALEX

®

AMERICA’S

MOST ADMIRED COMPANIES


1882 1900s 1930s 1940s 1950s – 60s 1970s – 90s

Years of Expansion

Passenger Era World War II Containerization

• The bark Rhoderick Dhu was the first ship to have a cold storage plant and electric lights

From Sail to Steam

• Largest freighters, luxury liners built in the U.S.

• Built Royal Hawaiian Hotel, one of the world’s finest

• Full compliment of diesel-powered containerships

• The first Matson steamship, the Enterprise, was the first offshore ship in the Pacific to burn oil instead of coal

• Entire Matson organization – personnel, ships, facilities, commandeered by U.S. government, full-scale war status

• Four passenger liners and 35 freighters to U.S. Maritime Commission; passenger ships converted to troop transport vessels

• Matson designated government agent/operator of 172 vessels, including its own 39 ships

• 11 Matson ships lost during the war

• “White ships” era• World-famous

luxury liners make Hawaii a world-class destination

• 1956, Matson creates research department to develop containerization technology

• 1958, first ship in the Pacific to carry containers on deck

• 1960, world’s first all container ship, first A-frame gantry crane, container handling equipment, container freight system

• 1970, Hawaiian Enterprise, Hawaiian Progress largest, most powerful ships under U.S. flag

The Modern Fleet

2000sExpanded Services

• 2 new ships built in Philadelphia

• MIL growth• New China

eastbound express service

• Matson Global Distribution

Services


Integrated Services

Specialized Hauling

Highway TL and LTL Expedited Ground & Air

Eastbound China Express Service

Warehousing & DistributionDomestic & International

Intermodal


Logistics Services

Network design and management

Mode optimization

Best-in-class process management

Carrier management and compliance

Technology integration: Customer, carriers, suppliers

Benchmarking

Origin

Region ACustomers

Dest X-dock Region B

Customers

Region CCustomers

T/L Leg

LTL Leg B

LTL Leg A

LTL Leg C


Truckload Solutions

Long-haul and regional highway services

Full truckload: Dry van & temperature-controlled

Flatbed and over-dimensional, including water / barge services

Specialized hauling and project work Work site project management

Complete logistics services or spot and seasonal support

Core carrier and dedicated and private fleet support

Automated event notification through shipment lifecycle


LTL Solutions

Pool distribution

Consolidation and cross-dock

Optimal assignment of heavy LTL

FAK and fixed class tariff technology

Specific carrier and industry tariff technology rating tool

Time critical services and last mile delivery

Expedited ground and air service Home delivery in many markets

Automated event notification through shipment lifecycle


Award-Winning Service & Industry Leadership

Customer recognition as Most Valued Logistics Provider and Best Provider

Superior service achieved by a team of resources assigned to each customer

Emphasis on Efficient processes Effective communication Consistent execution

Full EDI connectivity; customer portal for freight visibility

TIA board of directors representation

Sponsor, Univ of Denver Logistics Excellence and Academic Council

Advocate for best-in-class practices across multiple industry committees


Benefits

FlexibleSolutions to

MeetChanging

Needs

IntegratedTransportation

andW arehousing

Single Pointof Contact

TechnologyDriven

Processes

DedicatedService T eam

Investing forthe Future

IndustryKnowledge

andLeadership

CustomerSatisfaction

Motor, Rail,Ocean and Air

Options


Overview:

Network and Services


The Matson Network

Ship to shore to store, and more . . . Ship to shore to store, and more . . .


A Full Array of Services

Integrated Transportation Services

Matson Eastbound China Express Service

Transportation management Carrier management Highway TL and LTL Intermodal: Standard and

expedited Ocean service Dedicated services Port drayage Air freight / expedite Local cartage / store door

delivery Brokerage Freight forwarding

Warehousing Contract dedicated

facilities Engineered solutions Top-tier WMS

deployment Capital and human

investments Public warehousing

Shared-asset environment

Scalable, flexible Short-term “pop up”

capacity Seasonal and overflow

capacity Product recalls, store

openings or closings

Distribution Transload

Cross-dock

Consolidation

Deconsolidation

Pool distribution

Case pick & pack

Each pick & pack

Returns processing

Import & export

Supply Chain Strategy

Network study & optimization

Engineering design

4PL services

Value-Added Services

Custom design service

Club store packs Custom pallet

displays Tray cutting Gift boxes &

packaging Kitting & bundling Barcode labeling Price ticketing Rework and

repackaging


Adding Value to Your Enterprise

The Matson Global Value Proposition

FlexibilityFlexibility

Change Agent Change Agent

Reduce ComplexityReduce Complexity

Capital EfficiencyCapital Efficiency

Risk MitigationRisk Mitigation

LeverageLeverage Shared-Asset Environment, Multi-Client Synergy, Dynamic Network Access Utilization of Best-of-Breed Technology, Intellectual Capital (Process)

Seasonality Mgmt, Project-based Needs, Increase the Speed of Product Launch, Dynamic Network Optimization, Product Promotion Rapid Deployment

Deployment of Best Practice, Supply Chain Transformation, Process Expertise,Increase Product Turn, Speed to Market - Reduce Lost Sales During Season

Non-Biased, Blended Service Pricing (Port-to-Market), Guaranteed Capacity, Single Repository & Contact for Process Mgmt, Port/Border Crossing Expertise

Reduce Working Capital, Reduce Fixed Capital, Reduce COGS, Increase Cash Flow, Reduce Inventory Buffer/Holding Cost, Increase Product Turn

Real Estate Position, Product Ownership, Labor Management & Ownership, Border/Port Security Expertise, Available Capital for Growth, Nimble Supply Chain

• Service Focus on Quality, Cost, and SPEED


Certifications, Industries, Customers

Beverages

Imported Food & Ingredients

High Tech

Retail, CPG & Manufacturers

Wine, Beer and Spirits


Learn More

To learn more about Matson Global services and capabilities, contact Brian Howver at 714-316-6895 or [email protected]

Reno, NVReno, NV

Salt Lake City, UTSalt Lake City, UT

Dallas, TXDallas, TX

Houston, TXHouston, TX

Visalia, CAVisalia, CA

Ontario, CAOntario, CA City of Industry, CACity of Industry, CA

Savannah, GA Savannah, GA

Kent, WAKent, WA

Oakland, CAOakland, CA Hayward, CAHayward, CA

Whse Facilities & Company Owned

Logistics CentersIntermodal SalesCust Serv Centers

US Mainland5.56 Million SF- Owned -

(FTZ)(FTZ)

2 TerminalsSeattle

3 TerminalsOakland/Richmond

2 TerminalsLong Beach

Terminal ServicesStevedoring

Reliability. Flexibility. Agility. Speed.

Corporate Background

Matson Integrated Logistics, Inc. (MIL) is a diversified transportation company that arranges North American truck, rail, LTL and expedited / air transportation services. Established in 1987 and headquartered in Concord, California, MIL has offices in more than 25 cities throughout the United States and Mexico.

The parent company, Matson Navigation Company, Inc. (MNC) headquartered in Oakland, California was founded in 1882 and incorporated in 1901; MNC is one of the leading U.S. Domestic ocean carriers. It is the principal carrier of containerized freight and automobiles between the U.S. Pacific Coast and Hawaii, Guam, China and the mid-Pacific. MNC is a wholly owned subsidiary of Alexander & Baldwin, Inc. (A&B) of Honolulu (NYSE : ALEX).

www.matson.com 26

Reliability. Flexibility. Agility. Speed.

Continued

In 2005, Matson Integrated Logistics was ranked one of the leading intermodal marketing companies (IMCs) in Logistics Management magazine’s Quest for Quality award, out scoring a group of strong competitors in the category. It was the fifth consecutive year that the company has been honored with this award, including three years of being ranked the number one IMC.

Parent Corporations: Alexander & Baldwin, Inc. Matson Navigation Company

www.alexanderbaldwin.com www.matson.com

Alexander & Baldwin Revenue: $1.404 Billion

Financial Data Net Income: $ 44 Million Year Ending 12/09:

Assets: $2.380 Billion

www.matson.com 27

meeting material-gap 5-13-2010

Documents

matson ships

integrated services

awardwinning customer

matson network

dedicated services

costefficient service

matson steamship

regional highway services