Slide 1: Third Quarter 2023 Earnings Conference Call
1 Third Quarter 2023 Earnings Conference Call Third Quarter 2023 Earnings Conference Call October 30, 2023
Slide 2: Forward-Looking Statements
2 Third Quarter 2023 Earnings Conference Call 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 October 30, 2023. We believe that our expect
Slide 3: Opening Remarks
3 Third Quarter 2023 Earnings Conference Call Opening Remarks • Matson’s Ocean Transportation and Logistics business segments continued to perform well despite a challenging business environment and relatively difficult economic conditions impacting the U.S. consumer • Ocean Transportation 3Q23: – O
Slide 4: Hawaii Service Third Quarter 2023 Performance
4 Third Quarter 2023 Earnings Conference Call Hawaii Service Third Quarter 2023 Performance • Container volume decreased 1.9% YoY due to lower general demand – 3Q23 volume 0.8% higher than volume achieved in 3Q19 Container Volume (FEU Basis) 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41
Slide 5: Hawaii Service – Current Business Trends
5 Third Quarter 2023 Earnings Conference Call Hawaii Service – Current Business Trends UHERO Projections (3) (1) Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2023-08-state.xls (2) Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2023-08-maui.xls (3) Source: https:
Slide 6: China Service Third Quarter 2023 Performance
6 Third Quarter 2023 Earnings Conference Call China Service Third Quarter 2023 Performance Container Volume (FEU Basis) 8,000 13,000 18,000 23,000 28,000 33,000 38,000 43,000 48,000 53,000 Q1 Q2 Q3 Q4 2022 2023 Note: CCX service started in 3Q21 and ended in 3Q22. • Container volume decreased 1.3% Yo
Slide 7: China Service – Current Business Trends
7 Third Quarter 2023 Earnings Conference Call China Service – Current Business Trends • Currently in the Transpacific marketplace, we continue to see a reduction of deployed capacity in light of lower volumes as a result of lower consumer demand for retail goods • Absent an economic “hard landing” i
Slide 8: Guam Service Third Quarter 2023 Performance
8 Third Quarter 2023 Earnings Conference Call Guam Service Third Quarter 2023 Performance Container Volume (FEU Basis) • Container volume decreased 1.9% YoY primarily due to lower general demand • 3Q23 volume 12.8% higher than volume achieved in 3Q19 Current Business Trends • In near-term, expect co
Slide 9: Alaska Service Third Quarter 2023 Performance
9 Third Quarter 2023 Earnings Conference Call Alaska Service Third Quarter 2023 Performance • Container volume decreased 9.1% YoY – Lower export seafood volume from AAX – Lower northbound volume due to lower retail-related demand – Lower southbound volume due to lower domestic seafood volume • 3Q23
Slide 10: SSAT Joint Venture Third Quarter 2023 Performance
10 Third Quarter 2023 Earnings Conference Call SSAT Joint Venture Third Quarter 2023 Performance Equity in Income of Joint Venture ($ 5.0) $ 0.0 $ 5.0 $ 10.0 $ 15.0 $ 20.0 $ 25.0 $ 30.0 $ 35.0 $ 40.0 Q1 Q2 Q3 Q4 $ in millions 2022 2023 • Terminal joint venture contribution was $1.3 million; YoY decr
Slide 11: Matson Logistics Third Quarter 2023 Performance
11 Third Quarter 2023 Earnings Conference Call Matson Logistics Third Quarter 2023 Performance Operating Income $ 0.0 $ 5.0 $ 10.0 $ 15.0 $ 20.0 $ 25.0 Q1 Q2 Q3 Q4 $ in millions 2022 2023 • Operating income of $13.9 million; YoY decrease of approximately $6.2 million – Lower contribution from transp
Slide 12: Financial Results – Summary Income Statement
12 Third Quarter 2023 Earnings Conference Call Financial Results – Summary Income Statement See the Appendix for a reconciliation of GAAP to non-GAAP Financial Metrics. Year-to-Date Third Quarter YTD Ended 9/30 D Quarters Ended 9/30 D ($ in millions, except per share data) 2023 2022 $ 2023 2022 $ Re
Slide 13: Cash Generation and Uses of Cash
13 Third Quarter 2023 Earnings Conference Call Cash Generation and Uses of Cash ($ 200.0) ($ 100.0) $ 0.0 $ 100.0 $ 200.0 $ 300.0 $ 400.0 $ 500.0 $ 600.0 $ 700.0 Cash Flow from Operations Paydown of Borrowings, net Maintenance & Other Capex New Vessel Capex (1) Capital Construction Fund (2) Dividend
Slide 14: Financial Results – Summary Balance Sheet
14 Third Quarter 2023 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $450.3 million(1) – a reduction of $12.1 million from 2Q23 (1) Total Debt is presented before any reduction for deferred loan fees as required by GAAP. Debt Levels Share Repurchase • 3Q23: ~0.3 m
Slide 15: Other Financial Updates
15 Third Quarter 2023 Earnings Conference Call Other Financial Updates • CCF cash balance on 9/30/23 of $591.6 million – Nearly two-thirds of remaining milestone payments to be funded with restricted cash in CCF (1) – Expect to make next milestone payment for new vessels in 2Q24 • Expect 4Q23 tax ra
Slide 16: Closing Thoughts
16 Third Quarter 2023 Earnings Conference Call Closing Thoughts • We expect the consolidated operating income in 4Q23 to be higher than the level achieved in 1Q23 – Normal seasonality trends have returned to our domestic tradelanes and Logistics – Expect continued solid freight demand in our China s
Slide 17: Appendix
17 Third Quarter 2023 Earnings Conference Call Appendix
Slide 18: Appendix – Non-GAAP Measures
18 Third Quarter 2023 Earnings Conference Call 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, hel